OS AT KCL

An Organizational Study at KCL, Kundara 2011

INTRODUCTION

~ 1~ St.Johns College, Pathanamthitta


1.1 INTRODUCTION TO THE STUDY

An organizational study as a part of second semester MBA is really helpful to get a real view of

organization. It helps to know the working environment of a company apart from the theoretical

knowledge we are acquiring. For this I chose Kerala Ceramics Limited,, Kundara and

successfully done the project with the help of concerned people in the organization.

The history of The Kerala Ceramics dates back to 1937 when the Maharaja of the then

Princely State of Travancore set up one unit for Mining and Refining of China Clay and another

unit for manufacture of Porcelain wares. The Kerala Ceramics Ltd. was set up in 1963 as a fully

owned Government of Kerala Undertaking (under Companies Act) with its registered Office at

Kundara, Kollam by amalgamating these two units.

It was set up in1937 by the princely state of Travancore of the initiative of late Dr. C.P.

Ramaswami Iyar, Shri. I.C. Chacko and Shri. Sardar Doyar Singh, a leading ceramist of the day

and a professor of BHO. The factory was established of Kundara to utilise the abundant china

clay deposit available in this area.

The company has three divisions namely the porcelain division, the clays and minerals

division and the sanitary ware division due to highly uneconomical operations the sanitary ware

division of the company was closed down in 1990. Based on ERC recommendation and

subsequent government decision, the porcelain division was closed down from 01-04-2003 and

VRS is implemented to its employees. Now only the clay and minerals division is working.

1.2 SIGNIFICANCE OF THE STUDY

The organizational study helps to get a clear outlook of an organization as well as its functions.

The applied form of financial, production, marketing activities helps to realize how the real

business world looks like.



1.3 SCOPE OF STUDY

The scope is that to familiarize with the structure, system procedures and functioning of an

organization. And also for encountering practical situation which require immediate trouble

shooting and fast and prudent solution there by students can relate numerous concepts and

theories into practice.By permitting this type of study, the industry academic tie up is

strengthened which is beneficial to students and organizations a whole.

1.4 OBJECTIVEOF STUDY

1. To find out how the managerial functions are done in an organization.

2. To have a close look on various departments functioning in an organization.

3. To understand the strength, weakness, opportunities and threats of the organization.

1.5 RESEARCH METHEDOLOGY

The study is descriptive in nature. Two types of the data collection are used in this study and

they are primary data and secondary data. These are the original observation of the research.

Primary data are gathered in following manner,

1. Primary data

Primary data is the firsthand information collected by the researchers. Primary

discussions are held with the executive of the company.

Detailed discussions were held with the sales and marketing personnel of the

company.

The data collection during the study was discussed with the company officials.

2. Secondary data

Secondary data is the second hand information collected from annual report, data collected

from organizational websites, news papers, magazines, and previous year reports of the



company. The software package used for this study is MS Word, MS Excel, and Adobe

PageMaker.

1.6 LIMITATION OF THE STUDY

1. Time:

As it is a 15 days organization study, scarcity of time was a limit factor.

2. Busy work schedule:

The busy work schedule also acted as a limit factor

3. Errors in data:

The data is collected though enquiries, interviews and discussions with the official and

staff of the company hence there may be chance of errors in the information.



INDUSTRY PROFILE



Ceramic materials are inorganic, non-metallic materials and things made from them. They may

be crystalline or partly crystalline. They are formed by the action of heat and subsequent cooling.

Clay was one of the earliest materials used to produce ceramics, but many different ceramic

materials are now used in domestic, industrial and building products.

Traditional ceramic raw materials include clay minerals such as kaolinite, more recent materials

include aluminum oxide, more commonly known as alumina. The modern ceramic materials,

which are classified as advanced ceramics, include silicon carbide and tungsten carbide. Both are

valued for their abrasion resistance, and hence find use in applications such as the wear plates of

crushing equipment in mining operations. Advanced ceramics are also used in the medicine,

electrical and electronics industries.

In art history, ceramics and ceramic art mean art objects such as figures, tiles, and tableware

made from clay and other raw materials by the process of pottery. Some ceramic products are

regarded as fine art, while others are regarded as decorative, industrial or applied art objects, or

as artifacts in archaeology. They may be made by one individual or in a factory where a group of

people design, make and decorate the ware. Decorative ceramics are sometimes called "art

pottery".

The main product produced from clay in KCL is kaolin.Kaolin is named after the hill in China

(Kao-ling) where it was first mined, for many years before its discovery in Europe (Cornwall,

England) in 1745 by William Cook worthy who was looking for a source of material to produce

white china wares

China clay (Kaolin) consisting dominantly of koalinite is one of the most sophisticated industrial

minerals with a host of applications, viz., in ceramics, refectories, paper coating, filler for rubber,

insecticides, cement, paint, textile, fertilizers and other including abrasives, asbestos products,

fibre glass, chemicals, cosmetics, pharmaceuticals, electrical wares, foundry and glass. Kaolin

is a native hydrated aluminium silicate and is classified as an inorganic. It is used as an

absorbent, skin protectant, slip modifier as well as an opacifying, building and anti- caking agent.

It is also known as below Alba, china clay and koalite. The term kaolin is now variously used as


http://en.wikipedia.org/wiki/Ceramic

http://en.wikipedia.org/wiki/Clay

http://en.wikipedia.org/wiki/Crystalline

http://en.wikipedia.org/wiki/Nonmetal

http://en.wikipedia.org/wiki/Inorganic


a clay- mineral group, a rock term (consisting of more than one minerals) an industrial mineral

commodity, and interchangeably with the term china clay.

IMERYS Table ware mines the world’s largest deposit of kaolin located in south west of

England, France, New Zealand and it is from here that some of highest quality kaolin’s are

produced. This kaolin’s have exceptional ceramic properties such as outstanding whiteness and

mechanical strength which are of particular importance to the table ware industry.

Kaolin has been mined in France, England, Germany, Bohemia, and in the United States,

where the best-known deposits are in the south-eastern states. Approximately 40% of the kaolin

produced is used in the filling and coating of paper.

In filling, the kaolin is mixed with the cellulose fibre and forms an integral part of the

paper sheet to give it baby color, opacity and printability. In coating the kaolin is plated along

with an adhesive on the paper’s surface to give glass, color, high opacity, and greater printability.

Kaolin used for coating is prepared so that most of the kaolinite particles are less than two

micrometers in diameter.

Kaolin is used extensively in ceramic industry, where its high fusion temperature and

white burning characteristics makes it particularly suitable for the manufactures of white ware

(china), porcelain, and refractories. The absence of any iron, alkalis, or alkaline earths in the

molecular structure of kaolinite confers upon it these desirable ceramic properties. In

manufacture of white ware the kaolin is usually mixed with approximately equal amounts of

silica and feldspar and a somewhat smaller amount of plastic light- burning clay known as ball

cay. These compounds are necessary to obtain the proper properties of plasticity, shrinkage,

verification, etc., for forming and firing the ware. Kaolin is generally used alone in the

manufacture of refractories.

Substantial tonnages of kaolin are used for filling rubber to improve its mechanical

strength and resistance to abrasion. For this purpose, the clay used must be extremely pure

kaolinite and exceedingly fine grained. Kaolin is also used as an extender and flattening agent in



paints. It is frequently used in adhesives for paper to control the penetration in to the paper.

Kaolin is an important ingredient in ink, organic plastics, some cosmetics, and many other

products where it’s very fine particle size, whiteness, chemical innerness, and absorption

properties give it particular value.

The United Kingdom is second only to the United States as a producer of kaolin or china

clay and is the largest exporter of kaolin in the world. China clay is the United Kingdom’s chief

exporter m and almost the entire output comes from the St. Austell area of Cornwall.

Historically, the china clay s in Cornwall was discovered by William Cook Worthy in the mind

1700s to be suitable for making porcelain.

A large variety of china clay is mined all over India. Super chailbasia Bilhar off the color

and creamish – reddish several variations are mined in India .With the discovery of huge deposits

of china clay in the Kutch district, the Gujarat Mineral Development Corporation (GMDC) hopes

to develop mines clusters. It plans to ropes in private sector players to develop the cluster.

Gujarat ranks fourth in terms of production of lie stone and china clay in the country. GMDC has

identified in four places – Kutch, Rajkot, Morbi, and mehsana for the development of the

ceramics industry. At present, Gujarat accounts for over 70% of the semi organized sector in the

India ceramic industry, stoneware and ceramic grades occur extensively in Cuddalare,

Pudukkottai, Tiruvallur, Kancheepuram and Tiruvanna malai districts. The reserves are about 9

million tonnes.

The department of mining and geology through their past investigation campaigns in

parts of Kerala, identified two major china clay zones viz., the southern china clay zone between

Thiruvananthapuram and Kundara (Thiruvananthapuram and Kollam districts) and the northern

china clay zone between Kannapura madayi- Cheruthazham in Kannur District to Nileswaram -

Manjeswaram in Kasargod district. An estimated reserve of 172 million tonnes (probable reserve

of 80 million tonnes and possible reserve of 92 million tonnes) of china clay of sedimentary and

residual origin has been arrived at.



The paper coating grade china clay is produced by Kerala Ceramics Limited, Kundara.

Ceramics grade high quality china clay produced by Kerala Clay and Ceramics Products Limited

(KCCP) from their mines at Kannapuram and Pazhayangadi, Kannur district and Pudukai

Kasargod district.

Among the 25 working china clay mines in Kerala, 17 are in Thiruvananthapuram, 4 in

Kollam, and 2 each in Kannur and in Kasargod districts. Kerala has prominent place in the

refined clay map of the country, contributing about 58% of the national annual output.

Being the largest producer of high grade processed china clay, the enormous export

potential and relatively good infrastructure like ports, rod and rail links, Kerala is yet to make a

mark in the export of china clay. It spite of a fourfold jump in the production of raw clay in the

past two decades, the corresponding rise in the output of processed lay was only three fold.

POTENTIALS FOR CHINA CLAY INDUSTRIES IN KERALA

Ball clay

Ball clay (inferred reserve of 5.67 million tonnes) is found to occur in certain areas in

Kollam, Alappuzha, Ernakulam, Trissur, and Kannur districts. Through it does not conform to

specification of ball clays, yet it is considered to be a good substitute. At present, there is no

commercial production.

Fire clay

The fire clay occurrences are in association with tertiary sediments in the coastal land and

the inferred reserve stands at11.50 million tonnes. However, this resource is waiting to be

exploited.

Tile and brick clays

The tile and brick clay are usually of low grade and red burning. The main requisites are

that they should mould easily and burn hard at low temperature. There are about 400 tile

factories and about 5000 brick kilns spread over the entire state to manufacture tile and bricks.

The vast resources of alluvial clays in the paddy land and valley fill areas are used by this

industry in the state. Clays available for the manufacture of tiles are mostly found in the districts

of Trissur, Kozhikode , Ernakulam, Kollam, Trivandrum, Kannur, Palakkad districts.



Some companies extracting kaolin in Kerala

English India Clay Ltd

Kerala clays and Ceramics Products Ltd

P K N Industries

Some companies extracting kaolin in India

Nupur International

Dhirajlal & Co

Gandhi Sales Corporation

Marrelore Mining and Allied Industries Private Ltd

Shlok Enterprise

Some foreign companies extracting kaolin

D F L Minmet Refractories Corporation, China

Poilong Enterprise Company ltd, Taiwan

Foshan Promising Trading Company Ltd, China



COMPANY PROFILE



Name of company : The Kerala Ceramics Limited

Date of incorporation : 01-Nov-1963

Address (Registered office) : P.B.No.2, Kundara,

Kollam-691501

Factory : Clays& Minerals Division, Kundara

Phone, Fax : 0474-2522252 , 2526158

Administrative departments : Industries (Under government)

Name of Chairman : Mr. Elamaram Kareem

Name of M D : Mr. Devakinandanan

Present activity : Production of refined clay

Business type : Manufacture, Supplier

Total number of workers : 294



MISSION OF KCL

“Capacity doubling with low cost”

For achieving the mission to increase productivity with less cost of KCL changes from

some process like washing and pressing .Driers clay feeding process which increases production.

VISION OF KCL

“To build a mineral based park”

For achieving the vision they are planned to provide facility like place and material for

outside companies for making small industrial parts, clay and rubber mixed product.

The Kerala Ceramics Ltd is a public sector undertaking fully owned by the Government

of Kerala. It was setup in 1937 by the princely state of Travancore the initiative of late

Dr.P.Ramaswami, Sri.I.C.Chacko and Sri.Sardar Doyar Singh, a leading ceramist of the day and

a professor of BHO. The factory was established at Kundara to utilize the abundant china clay

deposit available in this are by the state of Travancore .In 1959, the porcelain division of the

company started functioning in the existing premises. Almost all of the equipments are imported

from U.K and the electric fired double tunnel kiln was supplied by M/S Brown Broveri of

Switzerland.The company was incorporated under Indian Companies Act in the year 1963 by

amalgamating these two units. The registered office of the company is at Kundara, Kollam.

In 1973, it was made a subsidiary of KSIE. In 1984 company took over functional

industrial estate and satellite unit from SIDCO. In collaboration with Nycore the unit was

converted into a sanitary ware division. The company has acquired 4.22 hectares of land in 1984-

1985 after making initial payment of Rs. 5.23 lakhs. In 1991 Kerala Ceramics was delinked from

KSIE and started functioning under the control of the Industries Department.



The principal Secretary of Industries of State is the Chairperson of Board of Directors.

His period depends on government decisions. The Government of Kerala appoints the Managing

Director of the KCL.

The company had three divisions namely the Porcelain Division, the Clays and Minerals

Division and the Sanitary Ware division. Due to highly uneconomical operations the sanitary

ware division of the company was closed down in 1990. Based on ERC recommendation and

subsequent government decision, the porcelain division was close down from 01-02-2003 and

VRS implemented to its employees. Now only the clays and minerals division is working.



PROD

UCT PROFILE



The company has two captive mines and one beneficiation plant at Kundara, Kollam District of

Kerala state. Plant has a capacity to produce 18000 MT of refined and spray dried kaolin. At

present company markets various grades of natural dried kaolin.

APPLICATIONS

Kaolin is part of our natural world. Its uses are multiple and diversified. Kaolin’s whiteness and

plasticity make it extremely suitable for its extensive use as a filler, extender, ceramic raw

material and pigment. It is also an important raw material to refractory, and to catalyst, cement

and fibre glass industries.

Kaolin is used in many applications. It is a unique industrial mineral, which remains chemically

inert over a relatively wide pH range and it offers excellent covering when used as a pigment or

extender in coated films and filling applications. In addition, it is soft and non-abrasive and has a

low conductivity of heat and electricity.

The two largest applications of kaolin are the coating of paper to hide the pulp strands and the

production of high grade ceramic products. It is also used in many other industrial processes:

Kaolin in Paper:In this industry, kaolin is used both as a filler in the bulk of the paper and to

coat its surface. Kaolin's whiteness, opacity, large surface area and low abrasivity make it an

ideal raw material for paper production. Its use allows a reduction in the amount of expensive

wood pulp required, enhances the optical properties of the paper and improves its printing

characteristics. When used as a coating on the surface of the paper, kaolin's whiteness improves

paper brightness and opacity, whilst the size and the shape of the individual kaolin particles give

the gloss and printed paper quality required for many different kinds of paper. Examples include

papers for magazines and brochures, art paper, cartons and boxes etc.

Kaolin in Ceramics: Kaolin converts to mullite and glass when fired to temperatures exceeding

1000° C. It is used in formulations described as white wares, which consists

of tableware, sanitary ware, and wall and floor tiles. It provides strength and plasticity in the

shaping of these products and reduces the amount of pyroplastic deformation in the process of

firing. In tableware, in addition to the strength and plastic qualities, it is essential to the



achievement of high fired whiteness. This is because it contains a low content of coloring

elements such as iron and titanium.

For sanitaryware, the product is formed by casting (either in plaster, or resin moulds under

pressure). Kaolin contributes the rheological properties that enables the casting slip to flow and

drain after the cast formation. The cast pieces are relatively heavy and the kaolin must be strong

to withstand the weight and retain the shape before the pieces enter the kiln.

Fillers:When kaolin is used as a pigment, it is divided broadly into filler- and paper coating

grade clays based on their brightness and viscosity. Its main properties, especially its whiteness

or near whiteness, make it very suitable as a filler or pigment. In addition, it remains inert over a

wide PH range, is nonabrasive, has a low heat and electrical conductivity and offers brightness

and opacity.

Paint:In its hydrous or calcined forms, kaolin can improve the optical, mechanical and

rheological properties of a paint. Calcined kaolins are widely used in satin and matt paints where

they can deliver increased opacity, whiteness and scrub resistance. Kaolin is particularly useful

as a partial replacement for TiO2 pigment.

Rubber:Kaolin adds strength, abrasion resistance and rigidity to rubber. Calcined kaolin in

particular, with or without a chemical surface treatment, finds extensive use in high value

thermoplastic elastomers for a variety of applications and in rubber insulation on high voltage

power lines.

Plastics: Kaolin is used in plastics to provide smooth surfaces, dimensional stability and

resistance to chemical attack, to conceal fibre reinforcement patterns and to reduce shrinkage and

cracking during polymer compounding and shape forming. It is also used as a rheological

modifier and functional filler, in which capacity it is used to improve mechanical, electrical and

thermal properties. A major application is in PVC cables where its main function is to improve

electrical properties. Other important applications include specialty films where they impart anti-

blocking or infrared absorption characteristics. Chemically treated, calcined kaolin is one of the



major additives used in the manufacture of automotive parts based on engineering

thermoplastics.

Refractories : Refractories are produced from natural materials, combinations of compounds and

minerals, such as kaolin, which are used to build structuressubjected to high temperatures,

ranging from simple to sophisticated products, e.g. from fireplace brick linings to re-entry heat

shields for the space shuttle. In industry they are used to line boilers and furnaces, ladles, stills,

kilns and so forth.

Fiberglass : The fibreglass which is used as a strengthener in a multitude of applications requires

the use of kaolin for its manufacture. Kaolin allows for the strengthening of the fibres integrated

into the material. It also improves the integration of fibres in products requiring strengthened

plastics: cars, boats and marine

products, sporting goods and recreation products, aviation and aerospace products, circuit board

manufacturing, fibreglass insulation, fibreglass air filters, fibreglass tanks and pipes, corrosion

resistant fibreglass products, fibreglass building and construction products, etc.

PROCESS

The principal operation in wet dressing of kaolin is the classification process which has two

objectives:

(1) to separate other minerals,

and

(2) to obtain required particle size

Screening, settling, hydro cyclones and centrifuges are mainly used for classification.

Additional processing stages generally to increase brightness and to adjust other physical

characteristics are also included in the refining circuits. In TKCL to improve brightness,

bleaching process is used in which iron bearing minerals are removed by addition of a

reducing agent (usually sodium hydro sulphite) at low pH. The colored iron compounds

are rendered colorless and soluble by bleaching and removed during water washing and



filtration stages.

Dewatering is done through high pressure filter presses and product is finally dried in a

spray drier. Spray drier is modern equipment in which clay slurry is atomized into an

exceedingly fine spray on entering top of a large conical chamber. The fine droplets

slowly descend passing through a stream of hot air. A fine powder is formed that is both

free flowing and virtually dust free.

QUALITY:

Almost one hundred tests a day are performed. Constant process monitoring is done at

every stage of manufacture, to ensure the highest standards of quality. From raw clay, all

materials and chemicals used in the production are subjected to tests to ensure adherence to

specifications.

Strict quality control by monitoring the critical parameters at desired frequencies is

maintained during all the stages of operation. Sampling is carried out conforming to

internationally approved methods. At every stage of the production, samples are taken at

specified frequencies and analyzed to ensure strict adherence to specification.

The technology is inherited from the Oharu Manufacturing Co. and enriched by our

experimentation over the past 35 years . The product is especially tested for brightness,

particle size distribution and dispersion aimed at customer requirement.



ORGANIZATIONAL

CHART


CMD

CMD SECRETARIATE

Personnel and Administrative

Manager

SUPERINDENT SAFETY GUARDS TIME KEEPER

STAFF

MINES MANAGER

MINE MATE

WORKERS

DEPUTY MANAGER WORKERS

ASSISTANT MANAGER

SUPERINDENT

WORKERS

DEPUTY MANAGER QUALITY CONTROL

TECHNICAL ASSISTANT

WORKERS

DEPUTY MANAGER ENGINEERING

MAINTENANCE ENGINEER

SUPERINDENT

WORKERS

CASHIER

STAFF

ASSISTANT MANAGER ACCOUNTS

SUPERINDENT

CASHIER

STAFF

ASSISTANT MANAGERACCO

UNTS

SUPERINDENT


Chart:1



DEPARTMENTS



The various departments for helping the efficient running of KCL are below. This is what

makes the company what it is now.

Personnel and Administration Department

Mines Department

ProductionDepartment

Quality Control Department

Maintenance Department

Commercial Department

Finance Department


Personnel and Administrative Manager

SUPERINDENT SAFETY GUARDS TIME KEEPER

STAFF


PERSONNEL AND ADMINISTRATION DEPARTMENT

Chart: 2

The Kerala Ceramics Ltd Company has a well developed

personnel department for regulating and planning the wage policy for over a period of fifty years.

The management also has special measures to win the cooperation of a large number of workers

employed in this company. There is favorable opinion on the part of the workers towards the

personnel department of the Kerala Ceramics Ltd. The personnel department deals with human

relationship with the organization concerned with working condition, recruitment, interview, test,

selection, induction, training, transfer, promotion, demotion, punishment, welfare activities,

retirements, grievances handling, disciplinary action etc.

PERSONNEL (Establishment/IR/Admin: /PR)

The manager (P&A) in an organization plays a vital role as a counselor, mediator, problem

solver and a change agent. The following are the functions of personnel department.

HRM function

Administrative function

HRM function

Recruitment and selection



Placement and orientation

Transfer and promotion

Disciplinary actions

Industry relation

Public relation

Welfare activities

Administrative functions cover the following activities

Attendance management

Wage and salary administration

Office management

Security management

Safety management

Recruitment and selection of Personnel

While selecting the personnel manager public sector undertaking by direct recruitment in

Government companies which are outside the preview of public Service Commission. The

following are the guidelines:

As per the Employment Exchange Act, 1959.

Recruitment to vacancies should be made by committees’ setup by the Board of Directors

with not less than 8 members and at least one of them being Government representatives.

In respect of direct recruitment the principle reservation as applicable to Government

appointment should be adhered to.

Placement and Orientation

The government directly appoints the Managing Director of the company. The staffs of the

company are appointed by the Public Service Commission. The managers are appointed by the

professional employment. The workers are appointed through the employment exchange. The

trainees are selected through the relational institutional centers. Each employee has a personnel

file which includes their application form, date of appointment to the company, about the transfer

etc. The workers of the company are classified into:



Probation

Permanent workers

Temporary workers

Casual Workers

Apprentice

Transfer

It is the process of placing employees in the same level job, where they can perform well

according to their potentialities and needs of the organization. Transfer is made through the order

of the company or through the request of the employees.

Promotion

Promotion plays an important role in motivating the employees promotion policy contains

the following aspects:

Promotion shall be made only to the next higher post in the scale structure.

The period of 12 month probation will be compulsory for every promotion.

When post falls permanently vacant management shall fill up the post from among

employees.

Promotion shall be considerable only if there is a vacancy.

Promotion is based on seniority basis. There is no promotion on the basis of performance.

The pre-determined period to be filled in Kerala Ceramics Ltd. to get a promotion is 8

years.

Disciplinary action

In case of misconduct a report will be given to the disciplinary committee. In case of

workers, the disciplinary committee will consult the manager. For the staff the committee will

approach the General Manager (Personnel Department) and in the case of officers it will be

headed to the Managing Director. A show cause notice is issued stating the details of the

allegation. If the allegation is serious the officer will be kept under suspension pending enquiry.

First a preliminary enquiry will be conducted and if the explanation is satisfactory it will be



closed otherwise a detailed investigation will be called for and an officer will be appointed to

enquire into crime done.

Retirement

Retirement of the employees is at 58 years of age (normal).

Labour Welfare Schemes

The labour welfare activities include P.F, ESI, Canteen, Uniform, Drinking water, Security

other allowances etc…

Employment assistance under die in harness scheme

The objective of this scheme is to provide employment or any monetary assistance

in lieu of employment to the department of employees die in harness.

Legal claim

The claim is for the employees with regard to various statutory obligations like

compensation under Workmen Compensation Act.

Casual Leave

The workers are allowed in 14 days sick leave and 18 days cash leave a

calendar year. Leave allowed for staffs are after 11 days of work and for workers after 20

days of work.

The following allowances are given:

Dear allowances

Chemical allowance Rs.10 per day

Cycling allowance Rs.2 per day

HRA Rs. 100 per month for staff and Rs. 50 per month for workers.

Night allowance Rs10per day.

Milk allowance Rs. 10 per day.

Washing allowance Rs. 15per month (only for the person’s the uniform is issued)

Stitching allowance (to whom uniform is provided)



First aid allowance Rs.35 per month

Festival loan Rs. 1100 given to the workers and is deducted from their basic pay by

teninstallments

VRS Benefits

On the basis of ERC and as ordered by government wide (ms) No 100/02/10 dated

on 05/10/2002, the company has implemented a voluntary retirement scheme for 89

employees as on 01/03/2003 and the remaining employees were deployed in the only

working division. Clay and minerals divisions is limiting the minimum required strength. The

company utilized an amount of Rs. 200 lakhs released by the government for the above.

.Incentives

The employee will be given incentive for the production above the basic volume.

The employee earns Rs. 1 for each additional unit of production in his direct presence and 50

paisa for his indirect presence (normal case).

Public holiday

The following are the festival and National holidays during the year:

Republic day

Maundy day

Good Friday

May 1st

Bakrid

Independence day

Thiruvonam

Sree Narayana Guru Samadhi

Mahanavami

Gandhi jayanthi

Ramzan

Christmas



Wage and salary administration

It details the procedure to be followed for preparation, verification and

disbursement of wages and salary for workers, casuals, apprentice, staff and officers of KCL and

also preparation of disbursement of payments like overtime ,leave encashment of earned leaves

and compensatory off, gratuity, super annulations etc.

It covers preparation and disbursement of monthly wage and salary for workers and

officer respectively and also for preparation of disbursement of all type of payment for

employees. The salary scale is not revised since 30-10-99.For the calculation the employees are

divided into two categories .First category includes all the executives and the second category

includes staffs and workers. The staff and workers are dividing into various grades. The scale of

pay of each worker in different grades is as follows:

Scale of pay to workers

Table: 1

Grade 1 Rs.3500-25-3625-30-3805-35-4015-40-4335-45-4650

Grade 2 Rs.3550-30-3700-35-3910-40-4150-45-4510-50-4860

Grade 3 Rs.3600-35-3775-40-4015-45-4285-50-4685-55-5070

Grade 4 Rs.3650-40-3850-45-4120-50-4420-55-4860-60-5280

Grade 5 Rs.3700-45-3925-50-4225-55-45555-60-5035-65-5470



Scale of pay to staff

Table: 2

Grade 1 Rs.3500-25-3625-30-3745-35-3920-40-4240-45-4465-50-4715

Grade 2 Rs.3560-30-3710-35-3850-40-4050-45-4410-50-4460-55-4935

Grade 3 Rs.3630-35-3805-40-3965-45-4190-50-4590-55-4865-60-5165

Grade 4 Rs.3730-40-3930-45-4110-50-4360-55-4800-60-5100-65-5425

Grade 5 Rs.3850-45-4075-50-4275-55-4550-60-5030-65-5355-70-5705

Grade 6 Rs.4000-55-4275-60-4515-70-4865-80-5505-90-5955-100-6455

Working Hours

Table: 3

Labours

The present manpower is 294.

PERSONNEL DEPARTMENT SECTIONS


SHIFT TIME

GENERAL SHIFT 8.00 AM to 5.00 PM

SHIFT (Workers)

8.00AM to 4.00 PM

4.00 PM to 12.00 AM

12.00 AM to 8.00 AM

STAFF 9.30 AM to 5.00 PM


Time office section

Security sections

Time office attendance

The information regarding the workers entry and exit is recorded in this section. The

system here is the punched card system using mechanical punching clock. Each and every

worker in the company is provided with a card with his work number, dates and corresponding

columns are kept separate rackets.

The worker entering the factory is liable to his card and punches the time and keep in

separate rack while leaving the premises. He is to punch the exit time and replace the card. This

card system is the sample proof of the working hours of a worker and it provides information

which helps the calculation of wages, attendance, period of work shift etc. a monthly statement is

prepared by the time office and sends to the concerned department. It helps in the preparation of

annual sheets concerning the working staff.

Security sections

Security section is very important function in many organizations, since it controls flow

men, materials and vehicles. The main functions of the security sections are;

Safeguard the organizations day and night.

To maintain a list of the men, material, vehicles entering and leaving the organization.

To record the exact time of entry and exit.

To control movement within the organization.

The entrance is restricted to one. The walls around the company act as a physical barrier.

Security department ensures the smooth flow of men, material and vehicle to and from the

company. The internal movement is restricted by identity cards. The security deals with any



problem faced by the workers include cases of behavioral problem due to liquor consumption

etc.

Trade Union

There exists 13 trade unions in the company, among that 6 for staff and 7 for workers. Some

of the trade unions are listed below:

1. Kundara Ceramics Staff Congress [INTUC]

2. Kerala Ceramics Workers Federation [KTUC]

3. Kerala Ceramics Employees Union [AITUC]

4. Kerala Ceramics Workers Union [UTUC]

5. Kerala Ceramics Workers Federation [KTUC]

6. Kerala Ceramics Employee Congress [INTUC]

7. Kerala Ceramics Workers and Staff Union [UTUC]

8. Kerala Ceramics Administrative Staff Association [RSP]

MINES DEPARTMENT


MINES MANAGER

MINE MATE

WORKERS


Chart: 3

Mining is the process by which raw clay is digging out from

captive mines. The initial step in the manufacturing of kaolin is to dig out raw clay from the

earth’s crescent i.e. mining.Head of this department is mine manager, mines mate and workers

works under Mines manager for assisting his duties. This department engaged in all activities

related to mining of china clay.There are different types of mining like;

open pit method,

underground mining

In open pit method, the clay is directly dinged up to the depth of clay,

forming a pit and then the clay as taken out. In underground mining, a tunnel is made form the

pit and the clay is taken out. When the clay deposit is too deep for stripping then underground

mining is used.

The type of mining is followed by the Kerala ceramics Ltd. Kundara is

the bench type open mining method. Raw clay materials are digging out from clay deposit

manually or using machines. Here the height and width of each step in the mining of 11/2m.As

the soil around these mines are soft we are using earth moving equipments like proclaim for

mining purpose and carrying raw clay obtained from the mining site is then transported to store

house by proclaimed.


DEPUTY MANAGER WORKERS

ASSISTANT MANAGER

SUPERINDENT

WORKERS


PRODUCTION DEPARTMENT

Chart: 4

Production department is concerned with processing of raw

material. It converts the raw material into finished goods that is according to the desired quality

and with effective and efficient utilization of available resources to achieve maximum profit.

At present KCL has only one division. That is kaolin division where raw clay is

processed into different grades of kaolin.

Kaolin Division

Kaolin division is meant for clay and minerals mining and refining. The major product of

this division is spray dried kaolin, which is getting through processing of china clay (kaofil). The

spray dried kaolin is demanded by Asian paints, Indian tobacco company(packing division),

Nirma, Karnataka Soaps & Detergent Ltd, Tamilnadu News Prints and is used in

pharmaceuticals, paints, detergents, cosmetics, paper coating, textiles, rubber and cables etc.

PRODUCTION FUNCTION

Production function includes three functions. They are:



Production (Processing /refining of raw clay)

Packing Section

Stores Section

Production

Main activity is mining and processing of china clay. The refining and processing of

china clay is using the following stages:

a) Blunging unit

b) Bleaching and washing unit

c) Filtering unit

d) Kneading unit

e) Drying and powdering unit

a) Blunging unit

In blunging section, slurry is prepared by adding clay and water. Agitator is used for slurry

preparation. Commonly two types of bungers are used.

Horizontal blunger

Vertical blunger

The raw clay and sufficient water are feed to the blunger tank where the dispersion of

clay and sand in water takes place by impact and attribution. There this help in separation

of lump particles. The residue is then sent to the vertical blunger where it is again

agitated. The overflow from the blunger flows through a pipe to a classifier where the

larger particles and huge amount of impurities like sand are removed. Further coarse

removal is obtained in a rotary sieve and cyclone set, the product from which has only a

size of 80 mesh. The main equipments of blunging unit include: Horizontal blunger,

Vertical blunger, Classifier, Rotary sieve and Cyclones etc.

b) Bleaching and washing unit

Bleaching is done for the decolourisation of the slurry and removes the ionic impurities.

Chlorine is used as bleaching agent.



Bleaching is a batch process. Here for bleaching eight tanks are used. The first grade slurry

which is collected from the top layer is pumped to the bleaching tank .On its way to the

bleaching tank it is mixed with chlorine .Slurry and clay fed to the reactor tube and bleaching

takes places. The mixed slurry and chlorine is collected in the bleaching tank and agitated well.

By bleaching with chlorine we can increase the brightness up to 66-67%.After preferable sulphur

dioxide is added. Sulphur dioxide has no action on the brightness. Their advantages are:

Helps to reduce consumption of sodium hydrosulphite as it is very costly, about 250

Rs per kilogram.

It neutralizes the action of excess chlorine.

The mixture is agitated well and then it is mixed with sodium hydro sulphate in a tank which

makes the iron impurities as water soluble. Addition of hydro helps to increase the brightness to

about 85%.Then it is allowed to settle for two or three hours. Then top layer water is removed.

Again slurry is agitated with excess water and soluble impurities dissolve in this water. It is then

allowed to settle for about 12 hours and the clear water with soluble impurities is removed using

a pump. This cut out water is pumped to two aeration tank for recycling and can be used again

for bleaching purpose; washing is repeated three times. After this slurry is directly pumped to a

collecting tank. From collecting tank it is pumped to thefilter press by a centrifugal pump. Hence

the percentage content of water in slurry is about 80%.

c) Filtration unit

The fine solids from the clay are separated from the slurry by filtration .The equipment used

is recess plate filter. The filter press contains a set of 50 filter plates designed to provide a series

or compartments in which solids maycollect. The plates of filter press are circular. The filter

press is a hydraulic press. The hydraulic press uses a high quality lubricating oil as fuel .The

plates to frames sit vertically in a metal rack, with cloth covering the face of each plate and are

tightly by a hydraulic ram.

The pressure not feeding the slurry to filter press is 10-12 kg/cm2.The pressure of the filter

press is about 150kg/cm2 the slurry enters at one end of the assemble of plates & frames. It

passes through a channel running lengthwise through one corner of the assembly. Auxiliary



channels carry slurry from the main inlet channel into each frame. Here the solids are deposited

on the cloth covered faces of the plates. Liquor passes through the cloth, down grooves or

corrugation in the plate faces, and out of the press.

Filtration continues until no longer flows out the discharge or the filtration pressure suddenly

rises. These occur when the frames are full of solid and no more slurry can enter. Wash liquid

may then be admitted to remove soluble impurities from the solids. The press is then opened, and

the cake of solids is removed from the filter medium and the filtrate is recycled.

The whole assembly is washed with water and again rest. The cake is transported by ‘cart’ to

the kneader. There are seven filter presses; two on line at a time for removing the cake from

medium .Natural dried kaolin is obtained by drying the cake in a solar dryer and powdering.

d) Kneading

Dispersion agent and the cake are mixed in a kneader to make the cake as slurry without

increasing the moisture content.

Kneading is a method of mixing used with deformable or plastic solids. It involves squashing

the mass flat, folding, it over on itself, and squashing it one more. In this mixing is done by two

heavy blades on parallel, horizontal shafts turning in a short through with a saddle-shaped

bottom. The blade turn towards each other at the top, drawing the mass downward over the point

of the saddle, and then shearing it between the blades and the wall of the trough. The circles of

rotation of the blades are usually tangential, so that the blades may turn at different speeds in any

desired ratio.

Filter cake from filtering section and dispersion agent pyre are dropped into the trough and

mixed continuously and deflocculating takes place. Now we get slurry which is agitated. By the

action of dispersing agent breaking and loosening of molecular bonds of cake occur. The slurry

then goes to two different collecting tanks with two different agitators. This is now feed to a 120

mesh sieve and then to a 200 mesh size sieve. The underflow is collected in a service tank and is

pumped to atomizer.

e) Drying & Powdering

It is used to make hot air at a temperature of 450c for drying in a spray drier .It is a direct fixed

heater consisting of two concentric shells and ventilator type mixing chamber. The inner


DEPUTY MANAGER QUALITY CONTROL

TECHNICAL ASSISTANT


chamber and oil burner, fires directly for producing the products of combustion. The dilution fall

ill supply the air through the annual space of the concentric shell for mixing up with the product

of combustion at the ventilator type mixing chamber. A provision for letting out the product of

combustion during the initial lightening period is there with a short sack of chimney located at

the outlet of the hot air generator with damper.

Packing Section

The company has a separate packing section where the products are packed before they

are dispatched. The clay powders are highly fragile goods. So care should be taken while

packing the goods. The company has adopted two methods of packing.

a. Card Board Packing

b. Basket Packing

A packing label containing the basket number, name of packer, the number of items in

basket, etc... are attached to each package or case. A delivery note is also required before the

goods are dispatched and two copies of the delivery note is kept in packing section. The note

should contain all the details regarding the package like the basket number, name of the packer,

number and type of items in the basket, date of manufacturing etc. Even though all the, measures

are adopted it has been found that a breakage of about 5% in the first stage and 7% in the second

stage cannot be avoided. Only 88% of the total output can be retained as finished goods.

Stores Section

All items required for production and office use are kept in the stores section. After

purchase the material is kept in the stores and on receipt of goods according to stores requisition,

this section prepares Goods received Note (G.R.N). This document is prepared in triplicate, one

copy to keep in stores, one to accounts section and another to purchase departments.

QUALITY CONTROL DEPARTMENT


DEPUTY MANAGER ENGINEERING

MAINTENANCE ENGINEER


Chart: 5

The main function of this department is quality

control analysis and that of new techniques,ISI certification process control standardization

technical service on wastage and loss. A process control laboratory is functioning under this

department which maintains the quality of the product as per the specified requirements .Samples

from the production department are analyzed in the laboratory and this analysis provides

information regarding any variation given to the production unit and thereby adequate steps are

taken to rectify it. This will result in the reduction of wastage and loss. This department also

checks the correctness of the mixing of raw material, mixture of contents. In the production side

they have to check profile fitting, cleaning of the product ,sponging and perfect checking is done

in shaping .The department has to check the preparation of glaze to correct grinding in ball ill

and the mixer content.

Benefits of the department

The possible benefits are being explored and the expenses are nil. This quality check help to

reduce wastage of raw materials to a great extend.

Future plans

The aim is to develop and introduce cost effective method for production of kaolin.

MAINTENANCE DEPARTMENT


DEPUTY MANAGER COMMERCE


Chart: 6

Under the Kerala Ceramics Ltd, there is a separate work and moduling

department and the head of this department is work manager. Deputy and Assistant manager are

assisting the job of work manager. The department handles the production process and

maintenance work of the machineries. This section marks necessary change for each product and

carriers out all the activities related to the manufacturing process. This department helps for the

proper maintenance of machines and thus no interruption in work due to the complaint of

machines.

COMMERCE DEPARTMENT



Chart: 7

This department buys all kind of material both raw material and other need for the

working of the company .It functions as a seller inside the organizational selling commodities to

other departments.

The commercial department deals with the procurement of raw materials for production.

This department is also concerned with the sales of the products. Since Kerala Ceramics Ltd does

have a separate marketing department. The other functions like arranging of contracts consuming

civil, mechanical, electricity, purchasing head load in etc, within the company are done by this

department. This department itself carries out the procedure regarding central excise duties

concerning sales as well as production. Another important function of this department is the

disposal of water material.

Commercial department is the combination of two sections:

Purchase section

Sales section

Purchase Section

The main function of purchase department is receiving order request from the stores.

Purchase of different items include feldspar, quartz, china clay, bell clay metal oxide, Zirconium

silicate, Zion oxide, Barium carbonate, color powder, transfer picture etc for the porcelain



division. The purchase for the clay and mineral division include furnace oil, hydrosulphite,

sodium silicate, sulphur oxide, soda ash, pyrophosphate, aluminum sulphate, chlorine, machine

spares, dryer spaces, baring belts etc.

The other functions are (Purchase Procedures)

a) Rising of orders requisition :

It is formed request from stores when a particular material is needed. The concerned officer

receives this order.

b) Proper enquiries to stores :

After receiving order requisition an enquiry is made to obtain a report of the material under

order.

c) Collecting quotations from suppliers :

Quotations are collected from suppliers through tender and schedule.

d) Tabulation sheets :

A tabulation sheet is prepared on received tenders with different rates from different

companies and is seeing to departments concerned.

e) Recommendation:

Depending on cost, quality and reliability of the quotation, a tabulated sheet of quotation

is recommended by concerned departments.

f) Order release :

After recommendation by time concerned department, an order is released for the purchase

of material.

Sales Section

Marketing is the most important function of business unit. The end result of marketing is

sales. Manufacturing perform the function, which direct the flow of goods from the producers to

the consumers. The sales department is engaged in the marketing and selling of porcelain wares

and china clay. The company is having major sales in hotel ware.

Sales Procedure



The company sells the product to the consumers where the party sends the list of the

required items to the company; the company receives the requirement for the various products

and sends them to the concerned party. Along with the price list, the company also sends the

details of the product, which involves the technical specification etc. If the parties agree to price

list they send order to the company. Once the company receives the order, they send the design

of the product to the concerned parties. Then the company proceeds with the sales of the goods

to the parties concerned. The company conducts all its financial aspects of the company only

through the company bank.

The company is directly selling china clay. There are three grades of china clay high

bright, paper grade and general grade. High bright clay receives a good price for its superior

quality.

The major competitors of Kerala Ceramics Ltd

English Indian Clay Limited

Alpha Clays

20 Microns Ltd

Some customers of Kerala Ceramics Ltd

Rubber flex, Malaysia( Export)

Sripathi Papers

Rainbow Papers Ltd-Ahmadabad

Kherai Paper Mills Ltd- Maharashtra

Sarda Papers Ltd- Maharashtra

N R Agarwall Industries Ltd- Mumbai

Balakrishna Paper Mills Ltd – Maharashtra

Berger paints

Price Fixing

The price fixed for the product by adding basic prices, sales tax, excise duty beyond

packing expenses. The company can't sell the product below selling price because there is an

approved selling price list. Discount allowed for white ware and ivory ware has good demand in



the market. But white colored items have rather good demand. All rejected items are old has

scrap value either through inviting quotation or through agents.

Advertising

The company does not have extensive advertising. But it advertises its products through

souvenir and magazines. It also conducts exhibition and trade fare.

Marketing activities of Kerala Ceramics Ltd

The marketing activities of Kerala Ceramics Ltd can be broadly discussed in following

heads:

1) Merchandising Function:

Under the merchandising function the following activities are performed:

Buying and Assembling

The extraction of raw materials for producing porcelain wares is done at its on Kaolin

division. The other raw materials used for the production are purchased from other units.

Assembling is done at the factory's porcelain division where all the production work is done.

Packing

The porcelain goods are packed as per orders and buy using (clay various packing

materials).

Selling

The company sells the porcelain products to the agents as well as order from various parties.

The clay is dispatched as per the order.

2) Marketing physical distribution:

Dispatching

The dispatch of products is an important marketing function of any company. After the

orders from several parties have been received the company arranges the executives of the order

by way of dispatch. Before dispatching of goods the following formalities are to be completed by

the consumers.

Payment



The payment is to be made in full by the DD payable at any schedule bank of the district.

Transportation and Insurance

These are to be arranged by customer and shall nominate the approval transporter. The

lorry receipt is sent directly.

Registers and documents to be prepared for dispatching goods

a) Order Register

The particulars or orders received are entered in a register known as order register. The order

register shows the date of receiving the order, the name of the party, type of products, payment

of cash, destination and transportation.

b) Delivery Note

The delivery note is prepared before the goods are dispatched. It contains the general

sales tax rules and it has to be maintained in triplicate.

c) Invoice

Invoice is also a necessary document in its name of customer, data, types of goods;

quality, price, destination etc. are shown.

d) Delivery Chelan

A delivery Chelan is a prepared before dispatching the goods which are dispatched, L.R

No. gate pass No., date of dispatch etc.

e) Gate Pass

The company gate pass is to be submitted before the security officer to take goods out of

factory premises. The gate pass contains the description of materials, quality, packing, purpose

of removal etc.

Marketing Facilitating Function

Financing

The Kerala Ceramics Ltd. Kundara does not require the financial assistance from the

banker or other government agencies for marketing their product. The customer will have to

make payment in advance by D.D.


ASSISTANT MANAGER ACCOUNTS

SUPERINDENT


Risk Bearing

The porcelain goods as well as china clay is sold in various states of the country and

locally also. So marketing involves many risks. If the product is not sold in standard quality the

customer will return goods. There were also big chances of the damages while storing the factory

goes down. By insurance all these risks are avoided to great extend, since transportation are done

by the buyer.

Distribution channels

The company has framed its own policy and strategies to face tight competition in the

market. The company has appointed agents all over India.

SALES FOR PRODUCTS KAOLIN

Table: 4

FINANCE DEPARTMENT


Year Sales( in tonnage)

2008-2009 14307.78

2009-2010 9457.00

2010-2011 9725.00


Chart: 9

KCL maintains a separate section for maintaining the monetary aspects of the business. The

accounts have been prepared under the historical cost conversions or accrual basis as going

concern with revenue recognized and expenses on actual basis applicable accounting standards.

There is manual and computerized operation in KCL. KCL has accounting software.

Functions

The main function of finance department is to get all receipts and make all payments and also

record all transactions and prepare the final accountants the department takes the following into

consideration.

Estimating capital structure

Fixing capital structure

Sources of finance

Management of cash

Financial control

Physical verification of stock and other fixed asset

To correct the transaction as per status of company act and check whether all relevant

accounting standard are adopted.

Periodical preparation of various statements of accounts.

To make all payment in time to the suppliers, contractors, employees etc and other

statutory payments like water, electricity, tax and duties etc.



To submit all necessary returns in the form to interested parties like share holders,

government etc.

Maintaining relation.

Types of Accounts

The accounting department prepares the following accounts for the easy working of the

financial department.

Purchase account

Sales account

Stores account

Cash account

Financial Planning

Financial planning is based on Companies budget. A monthly report is prepared for

government agencies. Cost structure of one unit Rs 3155/tones(exclusive of interest and

taxes).Tax policies are fixed according to government act .Insurance coverage’s action is on the

basis of Kerala state Insurance department.

Preparation of Financial Statement

It is the responsibility of the finance department to prepare the financial statement. This help

to find out actual position ofthe organization. The financial department prepares the following,

Performance report

P&L accounts-mines

Cost sheet and variance analysis-plants

Monthly profitability trend

Store trend

Direct material consumption statement

Fund flow statement

Balance sheet

Yearly budget



The existing exhaust fan is very old and in worn out condition. It is to be replaced with a

new one.

The company planned to make provision for a belt conveyer arrangement.

Methods Maintenance of Account

Monthly trial balance & profit and loss account.

Yearly profit and loss account and balance sheet.

Different Auditing system

There are 4 types of audit

Internal audit

Tax audit

Statutory audit

Accountant general audit

Sources of fund : sale of goods.

Share distribution

Government : 54%

KSIE : 46%

Note on capital budget

The capital budget is prepared with a view to enhance the production capacity to

50000mt per annum from the existing 1800 mt. The defaults are shown below.

Blunger

Increase the number of sieves to 16 numbers from the existing 8 numbers. This is

intended to handle the double volume of flow.

Additional two sets of pumps are required to handle the double volume of flow.

The number of collection tanks has to increase to two from the existing one to handle the

increased volume.

Settling



The company proposed to modify the setting tank. For this to install new agitators, new

pumps, motors, valves, pipe line etc.

The company suggested installing a centrifuge for bleaching.

The high value product with more than 90/-of 2 microns particles.

Company proposed to replace the existing reaction tube with a new one to handle the

vibrated capacity of production.

The company decided to make provision for replacing the existing inter transfer pump.

Capital Structure

The authorized capital of the company is Rs. 1400 lakhs and their paid capital is Rs.

190.58 lakhs.

General Accounts

In this section, a large number of General Accounts are kept, this includes:

General Journal in which transactions are entered first.

Standard Journal in which all recurring items are entered. (Salary, wages, excise duty)

Cash books in which all cash receipts and payments are recorded.

Ledger which includes general ledger, containing balance sheet items and expense ledger

covering the revenue expenses.

Sundry creditors and debtors ledger.

Bank book in which all bank payments and receipts are entered.

Subsidiary ledger which include individual accounts maintained by each department.

A Trial Balance is prepared every 4 months that is in September, December and March every

year. Balance Sheet is prepared annually for financial year from April 1st- March 31st of next

year.

Bills Section

In this section all payments for purchase are recorded. This includes bills payable to

suppliers and contractors. All the advances being given are also properly recorded. Sundry



creditor’s ledger and suppliers accounts are kept here. Every transaction is recorded at the end of

the year and the accounts are ratified and sent to the general accounts section.

Costing

In this section, separate costs records are kept for maintaining and every year cost audit is

conducted, both internally and externally by Govt. nominees. The main activity of costing

section includes:

Budgeting and Budgetary Control

Both revenue and capital expenditure budget are prepared. Capital expenditure budget is

prepared based on the total cost incurred for items in all departments. Revenue budget is

prepared on the basis of estimate for production, sales & expenditure. The balance sheet with

total assets and liabilities is prepared and total cash flow is found. Other activity of costing

section includes.

Assembling monthly performance.

Preparation of various analysis statements.

Issue of bank loans for working capital loans.

Presenting monthly information about the performance of the company to the Govt.

Preparing monthly consumption statement of raw materials.

Keeping and maintaining assets register and cost ledger and reimbursement bill for

medical expense of the employees.

Establishment & Provident Fund Accounts

This establishment section has 2 main functions:-

Time Keeping of factory Workers

For time keeping a punching system is provided within fine fate punching clocks and

punching cards are issued to all employees. The punching clock gives the details of attendance

which is recorded in the attendance register.

Payment Remuneration



Payment of remuneration is made strictly on the basis of attendance, overtime eligibility,

allowance etc. There is separate section for keeping provident fund accounts. Total provident

funds include the compulsory provident fund and voluntarily provident fund. The total provident

fund is collected to TCC employee’s provident, trust, which will be invested by the company in

small savings or Govt. security.

Sources of funds

To produce and sell there must be adequate finance for fixed assets, raw materials and the

other supplies to meet day to day expenditure of the enterprise. The company by mean of equity

funds and borrowed funds raised funds. The share capital has included authorized, issued,

subscribed and paid up capital. Subsidy has been received from DSTR and Govt. of Kerala.

Loans are obtained as term loans from SBI, IOB, UBI, IDBI and material loans from Govt. of

Kerala. Loans are obtained as term loans from SBI, IDBI, UBI, IOB and material loans from

government of Kerala.



SWOT ANALYSIS

STRENGTH

1) The brand name of KCL is the greatest strength.

2) Loyal customers give strength to company.

3) Company has its own clay mines.

4) Demand for the product is very high.

5) Availability of highly skilled man power.



6) Strong relation between the organization and all the levels of employees.

7) Effective communication facility.

8) High quality products make the strong bond between company and customers.

WEAKNESS

1) The casual workers without any commitment are a weakness of KCL.

2) KCL is not up-to-date with technology.

3) Absence of a standard Research and Development Department.

4) The company has to wait for long time to get financial assistance from government.

5) Only a part of the total capacity is utilized.

6) Acquisition of land for mining purpose is a problem.

OPPORTUNITIES

1) The company can introduce value added products and produce ceramics products in

medicinal field, aircraft engineering, military and so on..

2) If iron contents of clay are reduced by using novel technologies, company can exploit the

opportunities of fiber glass industry.



3) The reopening of porcelain division can grab the market share.

4) Rising of new firms in paint, paper and rubber industry.

5) As this company has its own mine, can strongly compete with the recently entered

companies.

THREATS

1) The strong competitors sometimes pose a threat to KCL.

2) Global recession.

3) Rise in fuel price.

4) Seasonal threats in mining process.

5) Problems of land acquisition for mining.

6) Increase in price of raw materials.

7) Possible change in government policy.

8) Increase in transportation cost.



FINDINGS,

SUGGESTIONS AND

RECOMMENDATIONS

FINDINGS

1) KCL has high reputation in the industry.

2) Refined clay of KCL meets above the ISI standard.

3) Well disciplined hard working and skilled labour force.

4) The company is still hanging on older technologies.

5) There is an absence of a standard Research and Development department.



6) There is only a small amount exporting.

7) The by-products are not fully utilized.

8) Many positions are vacant in the organization.

9) There is employee shortage.

10) Many machineries are rusting in company and wasting money

11) Fluctuation in sales is really increasing showing loss.

12) Only operational profit, no financial profit.

13) Electric charge is very high that the KSEB is charging very high rate for additional

consumption.

SUGGESTIONS

1) The existing mines have to be widened.

2) Research and Development department should strengthen with chemist and scientists.

3) Customer needs and preferences have to be considered.

4) Planned technological change and sophistication is needed to face competition.

5) By-products have to be utilized well to earn additional income.



6) Novel technologies to reduce the iron content in the clay can help KCL to enter the fiber

glass industry.

7) Employee motivation programs and training programs should be given.

8) Strive for better relationship between the management and local people so that problem

faced during land acquisition can be resolved amicably.

9) Advertising will help more customers to know about the company and its products.

10) Try to acquire chemicals at low cost, it can cause a slight decrease in cost of production.

RECOMMEND ATIONS

1) World is now moving fast, discovering new ceramics products. So the time to

change has been exceeded.

2) The closed porcelain division should be started with imported machineries.



3) More safety is to be provided for the employees as chemicals used affect their

health.

4) Performance evaluation help to increase productivity and employees will get

motivated.



CONCLUSION



The organizational study conducted in Kerala Ceramics Limited was

really beneficial for me. It provided a lot of information on what’s actually happening in

an organization, the problems they have to face, the factors influencing them, various

departmental functions and relationship between employees. Although KCL is a Kerala

government undertaken company, the changing governments sometimes neglect or avoid

the company for bringing it on successful path. The hardworking managers, staffs and

workers are the main assets. The company has yet not changed the technologies and this

made the competitors to gain success over them. The re-opening of closed porcelain

division will help to bring the company to previous status to some extend. As there is a

huge amount of electricity is needed, the government has to make a contract with KSEB

for providing electricity at low cost. Nowadays ceramics products are used world wide,

the organization have its own mine at Kundara and they are not exploring it in the

proper way. Ceramics have wide application in aircraft products, sanitary wares and

many more fields make its application more and more important.

BIBLIOGRAPHY/ WEBBLIOGRAPHY



BOOKS

Kolter Philip, “Marketing Management”, Pearson prentice Hall, New Delhi, Fifth Reprint Edition 2004.

B.S Madhur, Co-operation India, Sathiya bhavan publication Distribution Pvt Ltd. I.M Pandey, “Financial Management”, Vikas Publications pvt. Ltd New Delhi Sixth

Edition 2002. K Aswathappa , “Human Resources Management”,Tata McGraw Hill Education Pvt

Ltd,New Delhi,Fourth Reprint 2011.

COMPANY BROUCHERS

Company Journals

Department files

WEBSITES

http//www.keralaceramics.com

http//www.wikipedia.org

http//www.google.com


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