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INTRODUCTION


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CHAPTER 1

INTRODUCTION

A co-operative movement, which is the largest socio-economic

movement in the world, has contributed significantly to the alleviation

creation of productive employment as well as the enhancement of social

integration in the country. The co-operative movement in India particularly

in Tamil Nadu has taken deep roots in various sectors and is making a

significant contribution towards economic development and social progress of

the people. The co-operative sector is mainly concerned with agricultural

credit, marketing of agricultural produce and distribution of fertilizers and

pesticides and other essential commodities.

The share of the co-operatives in agricultural credit disbursed has

declined over the years. The lower levels of business volume relatively high

overhead costs and increased competition from the commercial banks have

contributed to the diminishing role of the agricultural co-operative

institutions. The co-operative banks are struggling to conform to the banking

norms and mobilize adequate resources to meet the requirements of the

farmers. Agriculture continues to be the mainstay of livelihood for more

than 50 percent of the population in Tamil Nadu. It contributes 12 per cent


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of Net State Domestic Product. It is the single largest private sector

providing job opportunities for rural people besides being the source of

supply of food grains and other dietary staples and serving as the prime

source of raw materials for industries Agricultural development is essential

not only to achieve self reliance food grains at the state level, but also for

ensuring household food security and to bring equity in distribution of

income and wealth resulting in ultimate reduction of the poverty level. In

fact, high economic growth will have no meaning for the masses of people

living in rural areas unless agriculture is re vitalized. For this agriculture the

essential products required is fertilizers.

The fertilizer plays an important role in agriculture. Fertilizers are

Compounds given to plants with the intention of promoting growth; they are

usually applied either via the soil for uptake by plant roots, or by foliar

spraying, for uptake through leaves. Fertilizers can be organic (composed of

organic matter, i.e. Carbon based), or inorganic (containing simple, inorganic

chemicals). They can be naturally occurring compounds such as peat or

mineral deposits, or manufactured through natural processes (such as

composting or chemical processes (such as the Haber process).


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Fertilizer, the most important input after improved seeds and irrigation

help in increasing agriculture production. The role of fertilizer in agriculture

production has increased overtime due to scarcity of land resources in the

country. There is necessity of using balanced doses of inputs including

fertilizer to a unit of land to get the most optimum level of production.

The government is continuously taking efforts to make agriculture which is

a primary sector, as a growth engine foe economic development of the

state. The performance in agriculture needs a real break- through to

eliminate poverty and bring prosperity to 56% of the population who are

dependent on agriculture. The various factors limiting the agricultural

development are conversion of land to non-agricultural use due to

industrialization and urbanization, water scarcity, vagaries of monsoon rains,

frequent drought/flood situation, scarcity of labor, etc resulted in stagnation

in agricultural growth. Among this, the shrinking of agricultural land and

adequate availability of water are the major constraints which need to be

overcome with suitable scientific approach to achieve sustainable

development in agriculture. Similarly, adoption of advanced technologies for

the starvation of soil health, mechanization, cultivation of suitable

remunerative crops, effective pest and disease management are essential to

set up the agricultural production. More concentrated efforts are required to


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increase the income of the farmers, empowerment of the farmers to make

their produce globally competitive and to understand the market trend to sell

their produce with reasonable profit. Though the performance on productivity

of rice, groundnut and sugarcane in Tamil Nadu is comparatively higher still

there is a great scope for improvement. In respect of millets, pulses and

cotton as there crops are largely cultivated under rain fed conditions. The

enhancement of productivity continued to be a major task.

In order to tide over the fertilizer crisis prevailed throughout the

country, the Government have been taken pioneer action by nominating

TANFED as a Nodal Agency to purchase DAP fertilizer from the importers

and to distribute to the farmers through primary

Agricultural Co-operative Societies. The governments have so far

released Rs. 70 crores to TANFED as interest free loan for this purpose.

The Government ensures adequate allocation from Government of India for

Urea, potash and complex fertilizers and Distributes through co-operative

banks and private outlets adequately. Because of the timely action taken, the

fertilizers are made available to the farmers adequately in time. The

restructuring effected during 2007 for agriculture Department by Positioning


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the technical officers of agriculture, horticulture, marketing and seed

certification departments at a single point in block level created greater

opportunities to the farmers to get integrated service at the block level

Agricultural Extension Centers. The activities taken up to provide Soil

Health Cards to all the farm holding by strengthening soil testing facilities,

production of vermin compost at farm hold level, establishment of municipal

compost units, establishments of additional units for bio fertilizer production,

promotion of micro nutrients application expected to play a major role in

the process of restoration of soil health. Supply of quality seeds of high

yielding verities and hybrids to cover larger extent, effective adoption of

integrated pest management concept through farmers' field schools, providing

medium range forecast to help the farmers to plan for their cultivation

operation, providing technical advice and quality inputs through technically

qualified entrepreneurs are the major initiatives taken up by the government

to bring major changes in agricultural development.

In order to fulfill the longstanding demand of the farmers and to

promote agro based industries, the Government has announced various

assistance for agriculture and agro processing industries under New Industrial

Policy 2007. Various incentives are extended for creating infrastructure

facilities for Terminals Markets Special Commodity Markets, Transport, Cold


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Chain, Godwons, Food Parks, etc. In general, all the incentives and

assistances provided to the industrial sector are extended to Agro Based

Industry also including the industries for manufacturing agricultural

machinery and micro irrigation equipments.

ROLE OF FERTILIZER

The role of fertilizer is increasing the food production has been

evident particularly during the last two decades. It clearly indicates today

that the bulk of increase in total grain production was merely attained with

the application of fertilizers.

The need for using chemical fertilizer in India agriculture was

emphasized for the first in 1982 by the royal commission on agriculture in

its report for increasing agricultural production in the country.

IMPACT OF FERTILIZER

The accelerated use of fertilizers in india has made the country's

economy more self reliant. Agricultural productivity & production has

increased considerably and this has gone a long way in expanding industrial

growth of export potential and employment opportunities in the rural and

urban sector.


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PROFILE OF THE COMPANY


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The capacity of ammonia plant is 750 tons per day. The annual capacity in

terms o production sales is around 2,00,000 tons per year and 6,00,000

tones of NPK fertilizer the cooperatives market has undertaken the project

of sampling the plant to get the benefit of obtaining 50% of more

production.

The process of adding substances to soil to improve its growing

capacity was developed in the early days of agriculture. Ancient farmers

knew that the first yields on a plot of land were much better than those of

subsequent years. This caused them to move to new. Uncultivated areas

which again showed the same pattern of reduced yields over time.

Eventually it was discovered that plants growth on a plot of lands could be

improved by spreading animal manure throughout the soil.

Over time fertilizer technology became more refined. New substances

that improved the growth of plants were discovered. The Egyptians are

known to have added ashes from burned weeds to soil. Ancient Greek and

roman writings indicate that various animal excrements were used, depending

on the type of soil or plants grown. It was also known by this tile that

growing leguminous plants on plots prior to growing wheat was beneficial.

Other types of materials added include sea-shells, clay, vegetable waste,

waste from different manufacturing processes, and other assorted trash.


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The Head office consists of functional divisions such as

Administration, Accounts, Internal audit, Fertilizers, Seeds and Pesticides

Agricultural Marketing and Civil Engineering. Three General Managers(1)

General Manager(Marketing)(2) General Manager(Finance and Accounts)(4)

Secretary(5)Manager(Internal Audit) are functioning under the control of

Managing Director/ Special officer. At district level there are 18 Regional

offices in Tamil Nadu State. Regional Managers are in charge of the

Regional Office.

The Members are:-

a) Primary Cooperative Marketing Societies working at taluk levels

(except those PCMS in the districts of Thanjavur, Thiruvarur

and Nagapattinam Districts which come under the purview of

Thanjavur CooperativeMarketing Federation Limited, Thiruvarur

and Nilgiris District).

b) Thanjavur Cooperative Marketing Federation Limited, Thiruvarur

c) Tamil Nadu Warehousing Corporation

d) Government of Tamil Nadu .


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The TANFED involved in many Agricultural marketing, in those 95%

of them are Fertilizer marketing. Even though they are the major fertilizer

marketing federation, the profit of TANFED will not be even equal to his

capital amount they invest. In past 30 years of TANFED most of the

expense made on transportation, the transportation expense increases on

regularly basis which causes loss for federation. The expense on

transportation increases every year which leads to loss on yearly basis. The

State Government has ordered the cooperative banks to provide short term

loans to the farmers in which fertilizer loan in also one among them so the

TANFED has no other option to rectify their looses. To rectify this looses

for the federation and the supporting co-operative banks, government has

announced a scheme called "Bulk fertilizer marketing". Based on this

scheme the expenses made on transportation and other thing will be

collected from the Fertilizer manufacturing industries, this yields profit to

the federation, co-operative banks and others.

TANFED had been appointed as principal agent for procuring the

corps that TANFED would purchase the copra from the farmers and the

disbursement of amount was by way of cheque, and the said purchase was

in operation between 25.8.2000 to 3.2.2001. The procurement of copra from

the farmers/coconut growers with the assistance of the employees of


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TANFED. The Government of India announced the price support scheme

with the view to benefit and help the farmers coconut growers to make

procurement of fair average quality of copra at the rate of Rs.32.50 per kg;

that the prevailing market rate was Rs.24.00 per kg; that the TANFED

entered into an agreement between themselves and decided to appoint Taluk

Agricultural producers cooperation marketing societies(APCMS) as its agency

in different places to procure copra; that the Kaveripattinam Society is one

among such agencies so appointed as procurement centre and the

procurements were made from 25.8.2000 to 3.2.2001 at Kaveripattinam.The

counter affidavit would further give the procedures of procurement of copra

by the representatives of the TANFED and the claim bills for making the

payments to coconut growers would be prepared and sent to the Regional

Manager at Dharmapuri who would claim the same and send to the

Marketing society for Disbursement; that in the pit chase register, entries

were made as if 4981.900 Metric Tons of copra worth about

Rs.16,19,11,750/- was purchased and entries were made in the stock register

signed by the petitioner herein; that the entries effected in the identity cards

were manipulated, thus boosting the extent, number of trees, yield etc.

On the contrary, the learned government advocate on the criminal

side appearing on behalf of the respondent would submit that copra was


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purchased from poor farmers and that TANFED have been formed to serve

the purpose of the farmers, In which the massive scandal has taken place,

resulting in the case being registered not only under relevant provision of

the Indian penal code, but also invoking the penal provisions of the

prevention of corruption act; that this petitioner who was the Managing

Director of Kaveripattinam Agricultural Producers Marketing Society, in

connivance with 15 other accused who are the revenue officials and public

servants, forging the names of the farmers, has cheated the Government to

the tune of crores of rupees in the purchase of copra and hence the case;

that it is a serious case of misappropriation of the Central Government

funds provided for the benefit of the farmers and in such cases, Section

125 of the Indian Evidence Act is attracted. On such arguments, learned

government advocate on the criminal side would ultimately conclude that

there is no room for this court to interfere with the case and that a through

enquiry has to be conducted in order to punish the offenders in accordance

with law. In consideration of the facts pleaded, having regard to the

materials placed on record and upon hearing the learned counsel for the

petitioner and the learned government advocate on the criminal side, it

could be summed up that a criminal case has been registered against a

number of accused who are cooperative society officials deputed and


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revenue officials deputed and revenue officials and that they are the public

servants within the meaning of the relevant provisions of law; that they

have been put in charge of and responsible for the employees of the

TANFED. It further comes to be seen that it is the central government

which has evolved a scheme through the National Agricultural Cooperative

Marketing Federation for the procurement of fair average quality of copra in

cooperation with the TamilNadu Cooperative Marketing Federation, which

has been appointed as the principal agent for the procurement of copra and

all these arrangements have been made so as to be beneficial to the

agriculturists, particularly the coconut growers in the State.

On the contrary, on the part of the respondent, it would be argued

that it is a serious embezzlement committed in connivance by each of the

accused joining hands with each other in a cooperative manner, and

therefore, no interference could be caused in the investigation, particularly in

view of the many decisions rendered by the Apex Court in the recent past

to the effect that right from the framing of the F.I.R. down to the laying of

the charge sheet, it is the domain and field of the investigating officer, in

which no interference could be made, unless in extreme circumstances

wherein the Courts are definite about a rank false case having been

registered. To cite one of the judgments from the very recently delivered


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judgments of the Apex Court, including the one recently delivered in Union

of India V.s. Prakash P. Hinduja and another, is telling to the effect that

no interference of any kind should be caused into the case which is

pending investigation and the relevant portion of the judgment is extracted

hereunder:

"Thus the legal position is absolutely cleat and also settled by

judicial authorities that the court would not interfere with the investigation

or during the course of investigation which would mean from the time of

the lodging of the First Information Report till the submission of the report

by the officer-in-charge of police station in Court under section 173(2), of

this field being exclusively reserved for the Investigating Agency".

So far as the legality of the question raised on the part of the

petitioner regarding whether the petitioner would come within the ambit of

the definition of public servant is concerned, the Apex Court, in its

judgment reported in A.I.R. 2000 698, has held in relation to the

Maharashtra cooperative societies act,1961 that the Chairmen of the

Maharashtra cooperative societies, through being a pubic servant under their

societies Act, is not so under section 21 IPC, and therefore, he could not

be prosecuted for the offences under penal code, thereby meaning that a

public servant coming within the meaning of section ( 2) of the Maharashtra


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cooperative societies act,1960, is not a public servant within the meaning of

section 2 of the prevention of corruption act,1947, by virtue of the

provisions of section 161 of the Maharashtra cooperative societies act,1960

under Section 21 IPC.

However, in the later judgments reported in 2002 AIR SCW 3895

and (2002)7 SCC636, it is categorically decided that within the meaning of

section2(c) of the prevention of Corruption Act, office bearers of

Cooperative Societies, in consideration of the said question on the basis of

interpretation of section2(c)of the prevention of corruption act relating to

management control and funding of society are considered 'public servants',

and therefore the controversy raised in view of these two judgments

rendered by the Apex Court is settled to the effect that the petitioner falls

within the ambits of 'public servant', and therefore, the controversy raised in

view of these two judgments rendered by the meaning of section 2(c)of

Prevention of Corruption Act.


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OBJECTIVIES

1. TO identify the agricultural input requirements of the farmers and

arrange for storage and distribution of Fertilizers, Seeds, Pesticides and

Agricultural implements through Co-operative outlets.

2. To provide market support to the affiliated member Co-operative

Marketing Societies in procuring, storing and marketing of agricultural

commodities.

3. To provide storage facilities for perishable agricultural commodities

and agro-based products by maintaining cold storage plants.

4. To undertake manufacture of agricultural inputs such as granulated

fertilizers, manure mixture and quality seeds.

5. To undertake the distribution of kerosene.

6. To provide mobile telephone services to farmers through Cooperatives.


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ORGANISATION STRUCTURE


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CHAPTER 3

ORGANISATION STRUCTURE

Organization refers to a process of integrating, unifying, balancing,

coordinating the activities being performed by members to accomplish a

predetermined objective. It may also be defined as a process of making an

orderly determination and arrangement of various activities, functions, roles

and relationship for some purpose. Thus, organizing is the process of

designing a well coordinated system of authority relationship and task

responsibilities that involves the enumeration and identification of activities,

dividing them among various members or departments and establishing a

relationship of authority among them.

Organizational Structures After have discussed the patterns of

departmentalization of various organizations and assignment of these

activities to various departments it is also necessary to know what type of

authority is allocated to these departments, and what will be the nature of

the authority relationship among them. It is true that without making a

proper distribution of authority to various departmental heads, the smooth

functioning of an organization cannot be maintained. Activities performed by

these departments cannot be properly coordinated to achieve organizational


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goals. Classical management theorists have identified three types of

organizational structures based on three types of authority relationship.

Structure Historically, these forms belong to the classical and traditional

approach of management. But we are using only Line and staff structure;

managers work in the line of authority, give order to subordinates and are

directly responsible for achieving organizational objectives.

They are composed of people who run and manage them. There are

rules and regulations, policies and procedures which all organizations develop

to define the role of its members, their behavior and activities.


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Merit of Organization Structure

If the organizational process is carried out properly and the organization

structure is carefully designed the following benefits would occur:

Available resources will be utilized in the most effective way. Directional and operational goals and procedure will be determined

clearly and energies devoted to their achievement.

An orderly hierarchy in which people are related in a meaningfulsequence will result. Individual responsibilities will be known clearly

and the authority to act would be defined.

Workers will benefit from planned superior-subordinate relationships inwhich each work receives essential support and direction.

The activities of the individuals and the groups will become morerational, stable and predictable.

Such an organization may make the treatment of the individualworkers more democratic, because patronage and favoritism are

reduced.

From the chart we, can easily understand that the company hasfollowed the Line & Staff Structure.


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LINE AND STAFF STRUCTURE

On account of inadequacies and drawbacks associated with the lone

form of organization and the growing complexities of modern business,

certain modifications may be introduced in the line form to make it

effective. Another new form is developed which is known as line and staff

organization. This may be considered to be a more refined and extended

form of a line organization. In a line and staff organization, a distinction is

made between line positions-those in a formal line of authority and staff

positions and those serving in an advisory capacity outside the formal line

of authority. Line managers have the authority to make decisions and give

orders to subordinates in the chain of command. But those who occupy

staff positions merely advise help and support line managers. They do not

have any relationship of authority. The rationale behind the development of

this form is to separate line activities which are basic and core in nature

from other supportive or auxiliary activities which are to be performed by

specialized staff. Hence, in line and staff organizations, both line activity

units as well as staff activity units co-exist. Staff units render various types

of services to line activity units so as to facilitate the performance of line


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activities in a satisfactory manner. However, the role of specialized staff is

purely advisory in nature.

Role of line staff authority As functional authority is merely a recent

outgrowth of staff authority for rendering specialist services and as very

often it is combined with staff authority we can leave aside functional

authority for the time being to get a clear idea about the distinctive role of

line staff authority. Staff men have limited and strictly defined advisory

authority in the organization structure. Line manager are directly concerned

with the show of work performance and for that purpose they can give

necessary command orders or instruction to the operating personnel. Staff

men supply gadgets techniques to the operating personnel. They no power

of command in the organization only when the specialized staff men are

organized into a separate department the departmental manager may have

the power of command over his own subordinates. Line authority not only

become the avenue of command to the operating personnel. It is also

provides channels of communication coordination and accountability.


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Advantages

y Expert advice. Line managers receive specialized advice andassistance from staff experts. They are enabled to discharge their

responsibilities more efficiently.

y Relief to top executives. Staffs carry out detailed investigationand supply information to line executives. Therefore, the burden of

line executives is reduced. They get ample chance for creative

thinking to generate new ideas.

y Quality decisions. Staff specialists provide adequate informationand expert advice. As a result line executives can take better

decisions.

yFlexibility. Line and staff organization is comparatively more

flexible. As the organization expands, staff can be added to help the

line manager. There is more opportunity for advancement because a

greater variety responsible job is available. Stability of the enterprise

does not depend on top executives alone.

y Training of personal. As every executive concentrate in one fieldhe acquires valuable experience. Young staff executive got

opportunity of acquiring expertise in their respective field of activity

there are greater opportunity for advancement


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Merits of Line and Staff organization:

This form of organization offers the following advantages:

Its strength lies in the fact that it can exercise control through aclear-cut and undivided delegation of authority and responsibility

and can achieve operating efficiency through specialization.

It enjoys the advantages in acute form. As the organization comprises both line and staff functions,

decisions can be easily taken.

The system is flexible, for new activities may be undertaken bythe staff without forcing early adjustments of line arrangements.

It is based upon specialized knowledge. It brings expertknowledge to bear upon managerial and operational problems.

It provides an adequate opportunity for the advancement ofworkers.

It makes possible the principle of undivided responsibilityand authority, and at the same time, makes staff specialization

possible.


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DEPARTMENTATION

1.PRODUCTION DEPARTMENT2.PERSONAL DEPARTMENT3.FINANCE DEPARTMENT4.MARKETING DEPARTMENT5.SALES DEPARTMENT


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PRODUCTION DEPARTMENT

Production can take place only with the combination of factors of

production, viz, land, labour; capital and organization organization has come

to occupy a very important role in production so as to deal with that on a

separate footing as an agent of production.

Definition of Production

According to Hicks "any activity directed to the satisfaction of the

other people's wants through exchange". In production department processes

and tracks all of the drawings for any given project once they are released

from the design department. We have the ability to know when an where a

specific drawing is during the fabrication and manufacturing phases through

drawing management as well as production schedule.


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Manufacturing process

Fully integrated factories have been designed to produce components

fertilizer depending on the actual composition of the end product, the

production process will differs from manufacturer to manufacturer.

Nitrogen Fertilizer Components

Ammonia is a one nitrogen fertilizer component that can be

synthesized from the expensive raw materials. Since nitrogen makes up a

significant of the earth's atmosphere a process was developed to produce

ammonia from air. In this process, natural gas and steam are pumped into a

large vessel next air is pumped into the system and oxygen is removed by

the burning of natural gas and steam. This leaves primarily nitrogen,

hydrogen, and carbon dioxide. While ammonia itself is sometimes used as a

fertilizer it is often converted to other substances for ease of handling.

Nitric acid is produced by first mixing to other substances for ease of

handling. Nitric acid is produced by first mixing ammonia and air in a tank

nitric acid and ammonia are used to make ammonium nitrate the material is

a good fertilizer component because it has a high concentration of nitrogen

the two raw material are mixed together in an tank and a neutralization

reaction occurs, producing ammonium nitrate


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Phorophorous Fertilizer Components

To isolate phosphorus from phosphate rock, It is treated with sulfuric

acid, producing phosphoric acid some of this material is reacted further with

sulfuric acid and nitric acid to produce a triple superphosphate an excellent

source of phosphorous in solid form. Some of the phosphoric acid is also

reacted with ammonia in a separate tank. This traction results in ammonium

phosphate another goods primary fertilizer.

Potassium Fertilizer Components

Potassium chloride is typically supplied to manufacturers in bulk.

The manufacturer converts it into a more form by granulating it. This

makes it easier to mix with other fertilizer components in the next step.

Granulating and Blending

To produce fertilizer in the most usable form each of the different

compounds ammonium nitrate potassium chloride, ammonium phosphate and

triple superphosphate are granulated and blended together. As the drum

rotates pieces of the solid fertilizer take on small spherical shapes. A

coating of inert dust is then applied to the particles keeping each one

discrete and inhibiting moisture retention. Finally the particles are dried


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completing the granulation process. the different types of particles are

blended together in appropriate proportions to produce a composite fertilizer.

The blending is done in a large mixing drum that rotates a specific number

of turns to produce the best mixture possible after mixing the fertilizer is

emptied onto a conveyor belt, which transport it to the bagging machine.

Bagging

Fertilizers are typically supplied to farmers in large bags, to fill

these bags the fertilizer is first delivered into a large hopper. An appropriate

amount is released from the hopper into a bag that is helps open by a

clamping device. The bag is no vibrating surface which allows better

packing. When filling is complete the bag is transported upright to a

machine that seals it closed. The bag is then converted to a palletizes,

which stacks multiple bags, readying them for shipment to distributors and

eventually to farmers.


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Quality Control

To ensure the quality of the fertilizer that is produced manufacturers

monitor the product at each stage of production the raw material and the

finished products are all subjected to a battery of physical and chemical

tests to show that they meet the specification previously developed. Since

fertilizer production is governmentally regulated, composition analysis tests

are run on samples to determine total nitrogen content phosphate content

and other element affecting the chemical composition.

Products/Wastages

A relatively small amount of the nitrogen contains in fertilizer

applied to the soil is actually assimilated into the plants. Much is washed

into surrounding bodies of water or filters into the ground water. This has

added significant amounts of nitrate to the after that is consumed by the

public


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FINANCE DEPARTMENT

An organizational may produce or buy and sell products or perform

different services under the same roof or from the same premises. The

modern practice is to divide the organization into dependent departments

each of which may deal in a particular class of goods or render a

specialized type of service. When accounts are finalized at the end of the

year. The usual method of trading & profit and loss account is not suitable

for such organizations. The owners or the management may desire to

ascertain the trading results of each department and the overall results of

the organization. The method of accounting which is followed to obtain

such results is kwon as departmental accounting.

Needs for Departmental Accounting

Accounts which reveal expenses, incomes, sales, stocks, gross profit

and net profit separately for each department are needed

1. To compare the results of each department with the results of

previous years and ascertain the trend.

2. To know the comparative results of different departments in the same

year.

3. To assess the position of stocks in each department.


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MARKETING DEPARTMENT

Marketing is an exchange a transaction, intended to satisfy human

needs or wants. That is marketing is a human activity directed at satisfying

needs and wants, through an exchange process. A demand is a want for

which the consumer is prepared to a pay a price. A want is anything is a

service the consumer desires or seeks. Marketing in its descriptive definition,

explains the functions involved on the activities if goods and services from

the producer to the consumer. "The performance of business activities that

direct the flow of gods and services from the producer to the consumer or

user. In traditional one because the earlier view aims movement of goods

and services from the producer to the consumer. Marketing is much wonder

than selling and much more dynamic. Selling revolves around the needs and

interests of the seller; marketing revolves around the needs and interests of

the buyer selling seeks profits by 'purchasing' the products on the buyers.

Marketing too seeks profit as but not through aggressive pushing of the

products but by meeting the needs of the customer and by creating value

satisfaction for them.

As a marketing federation TANFED does the work of procurement of

agricultural commodities such as cotton, chilies, maize, coriander, pulses, oil


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seeds, pepper, turmeric, etc. Procurement operation is undertaken from the

farmers through the cooperative marketing societies and the regulated

markets to fetch remuneration price for the farmers. The activity is being

done under joint venture basic with cooperative marketing societies. Under

the PSS 2010 TANFED is acting as an agent to NAFED and copra is

procured from the coconut farmers in 33 procurement centers in Tamilnadu.

Procured copra supplied to NAFED.TANFED sells crackers at very

reasonable price to the general public. TANFED also act as Nodal agency

for distributing crackers to the rural area through PACCs in the state during

the last 5 years. During last deepavali, TANFED has done crackers business

to the extent of Rs.1.40 crores and earned a profit of Rs.7 lakhs. Besides

TANFED has undertaken retail business also through its branches to the

extent of Rs.100 lakhs and earned a profit of Rs.15 lakhs. Such crackers

business has become a prominent business for TANFED.

Distribution of Fertilizer

The crop loan issued by cooperative banks consists of cash portion and

kind of portion. The kind portion includes fertilizers, pesticides, seeds which

are being supplied by Tamil Nadu cooperative marketing federation through


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2. Koyambedu:

TANFED installed its second cold storage at koyambedu

vegetables market complex, Chennai by availing loan facility from NCDC

share capital assistance from the state govt and subsidy from ministry of

food processing. The installed capacity of this godown is 2500 MTs Total

cost of this project was Rs.109.75 lakhs.

Modernization of cold storages:

TANFED has taken-up the work of modernization the above

cold storage with latest state of the art spilt refrigeration system with

automation and material handling system. It is also planning to implement

the inventory management system to have proper control on stocks stores by

the customers at a over all project cost of Rs. 200 lakhs .


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Kerosene Distribution

TANFED installed one kerosene bunk at kodambakkam with astorage capacity of 15 kilo liters in the year 1969 and continue its

function as whole seller till date.

In addition to the wholesale distribution in order to cater tothe needs of the ration card holders, four retail kerosene bunks are

functioning in kodambakkam at Chennai , mannargudi and

Coimbatore under public distribution scheme.

Around 50000 litres of kerosene is supplied to the card holder severy month in each of these retail outlets.

The allocation of kerosene for both wholesale and retaildistribution is made by the civil supplies department and is drawn

from the Indian oil corporation limited.


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pesticides seeds and agricultural implements which are being supplied by

Tamil Nadu cooperative marketing federation through primary agricultural

cooperative banks.

TANFED is drawing chemical fertilizer from the ;leading manufacture

like M/S IICO, KRIBHCO, IPL, Coromandal, FACT, RCF, GNFC etc,. and

distributing through primary agricultural cooperative banks. Tanfed has since

started cash sales of fertilizers which has benefited the farmers to get

fertilizers at cheaper price than the market price. TANFED has also started

private sales so as to enable to streamline the fertilizer sales in the districts.

Most farmers cannot afford to purchase fertilizer on a cash basis

similarly not every dealer can pay cash for fertilizers. Therefore credit plays

an important role in fertilizer distribution and use. Generally two type is

distribution credit which a dealer use for buy in fertilizer from the

manufacture or wholesaler. The second type is production credit which a

farmer uses for purchasing inputs of which fertilizer is the major one

various agencies provide credit to the agriculture sector in different forms.


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When technology improves and costs are reduced this material will be

viable new fertilizer.

In 1944 the government of India established the "central fertilizer

pool" as the official agency from the distribution of all available fertilizers

at affair prices throughout the country. All fertilizers whether domestically

produced or imported were pooled together and distributed through state

agencies. Fertilizer shortages in the early 1970's led the government to pass

the fertilizer movement control order in 1973 which brought the distribution

of fertilizer under government control. All the fertilizer were distributed by

the manufactures according to their ECA allocation during the two cropping

seasons kharif and cabi this system continued up to august 1992. Thereafter

all P and K fertilizer were decontrolled. AS, CAN and ammonium chloride

were also decontrolled all these fertilizer were free from distribution control.

The large volume of fertilizer is distributed through a well developed

marketing network spread throughout the country. Cooperatives supply

almost 35 percent if the total quantity available from domestic production

and production. The total number of a sale point was 282 468 of these 777

percent were privately owned 23 percent were in cooperatives and other

institutional channels. Pamani 17:17:17 is a mixed fertilizer with neema cake

as a major source. This was largely welcomed by the farmers. In recent


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organization grows, it requires more employees. The objectives of personnel

management can therefore be briefly described as follows, namely:

To attract and secure appropriate people capable of performingeffectively the organizations specific tasks;

To utilize the human resources effectively: and To generate maximum individual development of the people within

the organization.

It is necessary to visualize the development needed in suchindividuals in the light of higher position.

To supply the other departments with capable people as and whenneeded.

The recruitment and selection of the people possessing the requisitequalifications at least the potentialities for being developed in the

future in terms of the organizations needs.

To ensure continuity of the effectiveness of an organization. The employees must be fairly compensated for their efforts and

reasonable protection must be provided to them against insecurity

from causes such as accident and illness.


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PERFORMANCE ANALYSIS


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PROPRIETARY RATIO

Proprietary ratio relates to the proprietors fund to total assets. It

reveals the owner's contribution to the total value of assets. This ratio

shows the long-time solvency of the business. It is calculated by dividing

proprietor's funds by the total assets.

YEAR PROPRIETARY

FUNDS

TOTAL ASSETS RATIO

2008 872927897.3 1951284622.32 0.45

2009 919762046.4 2736425754.72 0.34


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INTERPRETATION

The Proprietor ratio shows the financial strength of the company. It

helps the creditors to find out the proportion of shareholders fund in the

total asset. The comparison made between last two year it was decreased to

0.34. It indicates greater risk to creditors and also the long-term solvency of

the firm is not satisfied.

0

0.050.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

2007-08 2008-09

Proprietary Ratio

YEAR


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DEBT EQUITY RATIO

It is a popular measure of the long-term financial solvency of a

firm. This relationship is shown by the debt-equity ratio. This ratio indicates

the relative proportion of debt and equity in financing the assets of a firm.

This ratio is computed by dividing the total debt of the firm by its equity

YEAR DEBT EQUITY RATIO

2007-08 530637231.60 8729278997.3 0.60

2008-09 875751062.92 919762046.4 0.95


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LIQUID RATIO

Quick Ratio is the true test of business solvency. The term 'liquidity'

refers to the ability of a firm to pay its short-term obligations as and when

they become due. The term quick assets or liquid assets refer to currents

assets, which can be converted into cash immediately. It comprises all

current assets except stock and prepaid expenses. It is determined by

dividing quick assets by current liabilities.

YEAR LIQUID ASSET LIQUID LIABILITIES RATIO

2007-08 806802376.8 642371414.30 1.25

2008-09 145434886.4 990678397.62 1.47


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NET PROFIT RATIO

Net profit ratio establishes relationship between net profit (after

taxes) and sales. It is determined by dividing the net income after tax to

the net sales for the period and measures the profit per rupees per rupee of

sales.

YEAR NET PROFIT NET SALENET PROFIT

RATIO

2007-08 17878294.50 21942850.00 54.13

2008-09 35858069.17 61505460.00 58.30


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INTERPRETATION

This ratio is used to measure the overall profitability and hence it is

very useful to proprietors. It is an index of efficiency and profitability is

the business. In the year 2007-2008 the ratio was 54.13 and in the year

2008-2009 the ratio was 58.30. while compare to the previous year, the

current year it was raised by 4.17 so it indicates a sound position of the

business.

52

53

54

55

56

57

58

59

2007-08 2008-09

Net Profit Ratio

YEAR


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FIXED ASSET

This ratio indicates the extent to which the investment in fixed assets

contribute towards sales. It shows the relationship between Net sales and

fixed asset.. The purpose of this ratio is to find out the percentage of the

Fixed Assets.

YEAR NET SALES FIXED ASSET RATIO

2007-08 21942850.00 98956180.84 0.22

2008-09 61505460.00 101561116.59 0.66


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ABSOLUTE LIQUIDITY RATIO

Absolute Liquidity is represented by cash and near cash items. Hence,

in the computation of this ration, only the absolute liquid assets are

compared with liquid liabilities. The absolute liquid assets are cash, bank

and marketable securities. It is to be observed that receivables are eliminated

from the list of liquid assets in order to obtain absolute liquid assets since

there are some doubts relating to their liquidity.

Year Cash+Bank Current

liabilities

ratio

200

7-08

46

0345

03.24

64237

14

14.3

0 0.07

1

2008-09 71798016.33 990678397.62 0.072


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INTERPRETATION

The Ratio is used to measure the quality of current liabilities. The

ideal Absolute Liquidity Ratio is 1:2. This Ratio is considered an acceptable

norm. The comparing made between the above two year the ratio was

increased to (.0072). So It determines the efficient utilization of current

liabilities. This test is a more vigorous measure of a firms liquidity

position.

0.0704

0.0706

0.0708

0.071

0.0712

0.0714

0.0716

0.0718

0.072

2007-08 2008-09

Absolute Liquidity Ratio

Year


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WORKING CAPITAL TURNOVER RATIO

This ratio indicates whether or not working capital (which relates to

current assets and current liabilities) has been effectively used in making sales.

The ratio establishes relationship between cost of sales and working capital.

YEAR NET SALES

NET WORKING

CAPITAL RATIO

2007-08 21942850.00 325288949.0 0/06

2008-09 61505460.00 765891429.4 0.08


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INTERPRETATIONS

This ratio makes it clear (.02) whether the business is being carried on with

small or large amount of working capital. In the year 2007-08 the ratio was

0.06. but on the rent year the ratio was 0.08. so it was increased to 0.2. it

shows the sound position of the company and also may be due to high

turnover of inventorys.

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

2007-08 2008-09

W

orking Capital Turnover Ratio

Year


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CURRENT ASSETS TO PROPRIETORS FUND RATIO

This ratio establishes the relationship between current assets and

shareholders funds. The purpose of this ratio is to indicate the percentage

of shareholders funds invested in current assets. This ratio can be expressed

either as a percentage or as a proportion. Fixed assets to proprietors ratio

and their ratio be studied for a meaningful analysis.

YEAR CURRENT

ASSETS

PROPRIETORS

FUNDS

RATIO

2007-08 967660363.34 872927897.3 1.108

2008-09 1756569827.80 919762046.4 1.908


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INTERPRETATION

This ratio indicates long term solvency of the firm. It shows the

proportion of assets financed by the proprietors. It is a test of long-term

credit strength. In the year 2007-08 the ratio was 1.108 and in the year

2008-09 it was increased to 1.908. So the long term solvency position of

the firm is satisfied and also shows the good financial strength of the firm.

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

2007-08 2008-09

Current Assets to Proprietors Fund

Ratio

Year


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RATIO AT FIXED ASSET OF PROPRIETORS FUNDS

This ratio shows the relationship between fixed assets and proprietors

funds. the purpose of this ratio is to find out the percentage of the owner

fund invested in fixed assets. the fixed assets are considered at their

depreciator book values and the proprietors funds.

Year Fixed Assets Proprietors

funds

ratio

2007-08 98956180.84 872927897.3 0.13

2008-09 101561116.59 919762046.4 0.110


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INTERPRETATION

This Ratio is used to measure the quality of proprietors fund. A ratio

can be expressed in percentage or as a proportion. It shows the general

financial strength of the firm. It determines the extent of trading on equity.

The comparison made between the above two years the ratio was decreased

to 0.11, so it determines a unsound position of the company.

0.1

0.105

0.11

0.115

0.12

0.125

0.13

2007-08 2008-09

Ratio Fixed Assets to Proprietor"s

Funds

Year


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FUTURE PLANNING


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TANFEDs FUTURE PLAN

Tanfed has announced some future plans which could lift them in

the upcoming years. They are

Bulk Fertilizer marketing will be widely done among thestate.

Improving Mixed fertilizer marketing, and spreading itthroughout Indian agriculture.

Federation has started to manufacture Pesticides. Federation also planned to manufacture Worm fertilizer. Decided to sell coconut plants. Planning to include Organic fertilizers marketing. Selling Fertilizers, pesticides, seeds and other agricultural

products through AGRO supermarket.

Implementing insurance plans among federation employeesand joining them as member of insurance system.

Improving Cell phone sales in government offices. Planed to distribute crackers to cities and villages through

co-operative.

Introducing new jobs for self employed members.


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CONCLUSION


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CONCLUSION

The importance of fertilizer lies in the fact that any significant

contribution made by the special officer in reducing fertilizer cost . Although

the selling of fertilizer is not direct marketing to the public. The investment

of fund is not important be familiar with way to control the marketing

effectively. The farmer have more benefit in fertilizer marketing without

investing the money.

They should concentrate more on after sales to retain the custom base

and other activities such as promotional advertisement to be given more

thrust to succeed in the competitive fertilizer market.

Company must take care to maintain the position through consistent

performance and communication it must closely monitor and adopt the after

sales strategies to match charges in custom need and as it adopts to the

even charging marketing environment.

This study power a way for the organization to identify the bottle

Completed Projected2

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