SFCK-presentn

ORGANIZATION STUDY CONDUCTED AT STATE FARMING CORPORATION KERALA

Reasons for selecting SFCK

SFCK is one of the profitable organizations in the public sector.

SFCK is an ISO 9000-2000 certified company. SFCK is the first largest Poly-bag Rubber Plantation in

the country.

Objectives of the study

To study how an organization is functioning. To understand the functions of each department. To understand the structure and hierarchy of the

organization. To study the financial status of the organization.

Introduction

The SFCK Ltd is an ISO 9001-2000 certified company, incorporated in April 1972 under the Companies Act 1956. The initial authorized share capital was one Crore, now it comes around 10 Crores

SFCK is the first largest Poly-bag Rubber Plantation in the country.

The State Farming Corporation of Kerala Ltd. (SFCK) was registered as a fully owned Kerala Government company under the Indian Company’s Act, 1956 on 15th April 1972.

Cont….Vision

“Steady growth through continual improvement of products and processes “

Mission

“The mission is to ensure customer satisfaction by continually improving

products and to earn a reasonable profit”

Quality policy of the company

SFCK aims to achieve customer satisfaction in all levels. The company will

strive for Human Resource Development, product improvement and

conformity to standards. SFCK is committed to quality and continual

improvement in all activities.

Organizational Structure Board of directors

M D

C A O C S G Mngr

Personnl manager

A O InternAudtr

Estate manager

Factory manager

Manager operation

L W O

Comm.officer

Purch.officer

Medical Officer

Security officerAsst.

ErAsst.Er.

Product ProfileThe important products of the corporations are

Main product :60% Centrifuged Latex.

By products:

Coagulated Skim

Cenex overcoat

Pit Recovery

Skim Crepe

Other products

Raw cashew nuts

Pepper

Coconut

Departmental Analysis

1. PERSONNEL DEPARTMENT.

2. LABOUR WELFARE DEPARTMENT.

3. PURCHASE DEPARTMENT.

4. PRODUCTION DEPARTMENT.

5. SALES DEPARTMENT.

6. FINANCE DEPARTMENT.

7. ESTATE DEPARTMENT.

Personnel departmentFunctions

The functions of personnel department are mainly two:

Managerial function

Planning.

Organizing by setting up the structure of relationship

among jobs, personnel and physical factors to contribute

towards organizational goals.

Directing employees.

Controlling.

Cont….Operative functions

Procurement of the right person in right place

at right time.

Training and development of employees.

Determination of adequate and equitable

compensation to employees.

Integration of the interest of the personnel

with that of enterprise.

Providing good working conditions and

services to the employees.

Recruitment and Selection

Recruitment of manager and subordinate service the following procedures are undertaken:

For staff and officers the recruitment should be carried on as per Government orders since his appointment in the

company has not been entrusted to Public Service Commission.

Selection is made by a committee constituted by the Board of Directors. The board consists Managing of Directors, Government Nominee and the experts nominated by the

Managing of Director. The recruitment and selection is now under the control of Public Service Commission.

Employee profile

Employee is the corner stone of every organization. The remuneration payable to labour is called wages. The labour cost including monitory benefits like employers contribution to PF, employee`s insurance retirement benefits etc. are also paid to labours.

Card system is adopted in SFCK for the workers. Each workers will get a card contains Name of the Estate, Register Number, Unit Name of worker, Address, Signature of the worker. The worker will enter into the estate after the corresponded day column filled by the supervisors.

LABOUR WELFARE DEPARTMENT

The welfare activities of the company under labour welfare department are classified into statutory and non-statutory.

Statutory

• Provident fund and gratuity.• Medical facilities.

Canteens.

Crèches.

Recreational facilities.

Housing facilities.

Educational facilities.

Weather protective.

Welfare officers.

Non-statutory.

Loan on salary account.Reduction in canteen.Educational promotions.Family welfare associations

The major facilities provided by SFCK Ltd

Hosing facilities. Water supply facilities. Hospital facilities. Crèche facilities. Employment facilities.

For the accommodation of the employment the company provides quarter’s facility. It also provides, conveyance to children of the employees for education purpose in addition to the company provides certain other benefits to the employees. They are as follows

Cont……………………………..

Contributing fund to all.Uniform to all permanent workers with free of

cost.Bonus and production incentives.Electricity bills are paid by the company up to

30 units.Reading rooms in estates.Students scoring highest marks in SSLC will

be paid its Rs. 1000/- as scholarship.

Procedure for settling problems

The labour welfare officer looks into welfare activities for the employees in general. He discusses labour problems with the employees. He prepares a report on the problem one copy of report is sent to the personal manager. For furnishing the report, the labour welfare office makes periodical visits to labour colonies also to their welfare activities of the centre at least once in every month. He holds necessary consultation with employees regarding their problem. The labour welfare officer discusses matters with respective managers. The managers examine the genuineness of the matter.

Review of the employee`s welfare activities in the company is made at the end of Quarters by the MD – the meeting is conducted with the participating of estate managers, welfare officers, estate medical officers etc.

Trade unionsEmployees unions Rubber Plantation Workers Unions.(CITU) KSFC Workers Association.(INTUC) KSCF Workers Federation.(AITUC)

Unions Representing Staffs Kerala State Farming Employees Union. State Farming Corporation Staff Congress.

PURCHASE DEPARTMENT

This department is responsible for buying all necessary items used for the production. The purchase procedure mainly conducted through tender

The Main Materials Purchased By the Company

1. The Rain Guarding Materials

2. Tapping Materials

3. Other Materials

The Rain Guarding Materials Polythene film Rain guard adhesive Stapler Stapler pin

Conti…………………. Tapping materials GI bucket Plastic basket Sulthaly Spout Plastic cup Cup holders Tapping nice

Other materials Chemicals (Ammonia, Sulphuric Acid, Lime powder) Fertilizers (Urea, Potash, Rock phosphate) Reconditioned Barrels Cap seals

Purchase procedure1. Purchase requisition

2. Administrative sanction

3. Inviting tender

4. Purchase committee

5. Tabulation of tender

6. Sanction from the board

7. Purchase order

The purchase order will have the following terms and conditions:

A. Acknowledgement offer

B. Quality

C. Rejection

D. Delivery schedule

E. Invoice

F. Guarantee

Conti………….8. Execution of agreement and resistance of security

9. Supply details: Supply details contains, items supplied, manufactures

name, quality, date, quantity, price etc.

10. Goods received note

11. Material rejection note

13. Making payments

Purchase managers role and responsibilities. The manager is responsible for making purchase for the

company. The manager strictly adheres to the rules issued by the State

Government relating to the purchase procedure.

Conti…….. The manager is responsible for arranging the yearly and other

requirements of materials and other item needed for the corporation and its advance action for processing the rain guarding material tapping instruments etc.

The manager is authorized to summation purchase of material up to Rs. 50000/- at a turn. Subject to budget provision observing the stores purchased procedure and other formalities vice versa collect indent accessories requirements, invite equitation process, negotiate if necessary and issue purchase order.

The commercial officer will assist the manager in all matters of

purchase in the corporation.

Sales department

Major selling products of the company Latex Crepe rubber Scrap rubber Cenex (60% centrifuged latex)

Other selling products of the company Bowl lump Cenex overcoat Pit rubber Latex lump Cashew lump

Conti……… Pepper Coconut

Functions of Sales Department To collect order and supply material To make collection of payment in due To meet requirement specified by the customer To make arrangement for action

Selling Process

Stock register Order Registration Card Order Acceptance Form Delivery order

FINANCE DEPARTMENT

Role of finance department Planning of fund. Raising of fund. Allocation of fund. Control of fund.

Functions Financial controlling and planning. Finalization of account. Audit of account. Acquisition of fund Investment of fund. Maintaining proper liquidity. Purchase and sales account. Preparation of payroll, payment of salary and wages.

Conti………… Taxation of matters(income, sales, agricultural taxes) Assisting chief accountant officers and auditors. Accounting of all transaction, cash at bank, sales etc. Transfer fund to various estate and control over sales.

Other statutory function. Tax deducted source( legal, procedure ,collection, remittance) Provident fund and gratuity.

Finance Process  Source of capital Share capital Credit policy Insurance Banking sector Control process

year 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Sales (in lakh)

2106.52 1892.61 2509.65 2284.89 3231.03 3762.03

Other income(in lakh)

123.51 192.77 273.34 280.08 348.33 291.03

Profit (in lakh)

863.95 1297.26 1277.22 468.51# 1675.52 2428.50*

# the shortfall in profit was occurred due to;

I. price fall of rubber in market

II. Payment of wages revision to workers

III. provision for gratuity consequent to enhancement in wages

Financial achievementsThe total sales value of rubber produce during 2009-10 was

Rs.32.32 Crores where as during 2010-11 the total sales value was Rs. 37.62 Crores. Thus we could attain Rs. 5.31 Crores more than that of 2009-10

2005-06 2006-07 2007-08 2008-09 2009-10 2010-110

500

1000

1500

2000

2500

3000

3500

4000

salesothr incmprofit

Functions of Finance Department

Financial Forecasting and planning Acquisition of funds. Investment of funds. Maintaining proper liquidity. Assisting the Chief Accounts Officer and Auditors. Accounting of all transaction cash at bank, sales etc. Checking of wages and salary payments. Regular payment of statutory dues like provident fund, sale tax etc. Furnishing necessary reports relating to finance to Managing Director. Transfer of funds to various estate and control over the sales.

Duties of Finance Department Overall financial control. Monitory decision making in consultation with Managing Director. Finalisation of account. Budget preparation. Control over all matters relating to finance in the organization.

PRODUCTION DEPARTMENTFeatures of production department To ensure the high quality. To avoid waste and rejection. To follow a proper inventory control. To ensure effective use of equipment. Effluence treatment plant.

Production ProcessThe factory is headed by the factory Manager. The factory has the following

sessions. Field Latex Recovery Area. Centrifuging Section. Cenex filling section. Skim coagulation area. Crepe milling section.

Miscellaneous works

Treatment facility, drainage, cleaning etc. are the miscellaneous works usually carried out in the company.

Cleaning the field latex storage tank. Giving time for sedimentation with addiction of chemicals. Transferring it into another tank prior to processing. Mixing with chemicals. Feeding it into latex machine. Centrifuged latex thus separated is then stored in cenex storage tanks. This mined with required chemicals.

This cenex is filled in barrels, weighted and stencilled.

The stencilled barrels are stored and dispatched as per the delivery orders.

Estate DepartmentThe functions of the estate are controlled by the Estate Manager. The Estate

Manager he acts as controller of all activities in the estate. The SFCK have two groups estate.

1.Group A estate  a).Chithalvetty   846.196 Htr b).Kumaramkudy 500.59 Htr

2.Group B estate.  a).Cherippittakavu  452.45 Htr b).Mullumala  239.15 Htr c).Ambanar  213.65 Htr d).Kottayam 108.75 Htr

Total :2360.786 Htr 

Competitors Information

For any industries there are number of competitors who themselves try to emerge with innovative products and services, to compete with other industries. Likewise The State Farming Corporation of Kerala is also having competitors in both public sector and private sector.

The major competitors of the company in the public sector are mainly The Plantations Corporation of Kerala Ltd (PCK), kottayam and The Rehabilitation Plantation Ltd (RPL).

There are many competitors of SECK in the private sector. The major firms are Harrison Malayalam Limited (HML), A.V.Thomas&Co.Limited (AVT), Malabar Latex (P) Ltd, and Aleppy Latex (P) Ltd etc.

SOCIAL RESPONSIBILITY

The company provide medical help for the Chicken Guinea patients.

Drinking water facility is provided by SFCK in the area of Punalur

The student who scored highest marks in the SSLC will be paid Rs. 1000 as scholarship (company area).

Providing morning and evening transportation facility to the students the forest area.

The company is providing medical help of Rs. 1 lakh in the Vettithitta panchayathu.

Future Growth and Prospectus

Increase the population capacity from 2 to 5 tons by through collecting latex from marginal farmers.

Commencing the commercial cultivation of pineapple as an intercrop throughout the plantation.

Introduce a new plant for the production of rubber product such as gloves, pillows, and cushions.

Increase the total sales above 15 Crores. We have decided o replant 75 hectares of low yielding cashew area with

rubber in 2010. The most important plan is the replantation of the rubber estate from the

year 2013 onwards and for which the preliminary works have been started. Discussion regarding the diversification of rubber product is going on and a

decision can taken shortly. We are also planning to set up a dual facility crumb unit and its project report is ready for discussion by Board of Directors.

Dividend Payment

1. An amount of Rs. 42,12,850(Forty two lakh twelve thousand eight hundred and fifty) 5% has been paid by the corporation towards the dividend for the year 2007-08 after a lapse of 35 years.

2. An amount of Rs.8,42,570 has paid to the govt. by corporation towards the dividend for the year 2008-09

3. An amount of Rs.50,55,420 has been paid to the govt. by corporation towards the dividend for the year 2009-10

FINDINGS

The management of the department is very flexible and is maintaining good relationship with the employees.

The products are of high quality. Various departments and its personnel`s are orderly arranged. All departments are computerized. Good facilities are provided for the employees. Employee health care is well maintained.

Workers family and dependents are taken care. Productivity lesser due to old age of plantation. Future oriented work is not planned. High quality bud and new plants are made in nursery. Machinery well maintained and trained technicians. The net profit of the company is satisfactory level due to the better sales.

SUGGESTIONS

Seasonal workers can be recruited for cottage industry. Side farming like micro cattle farm can be introduced with

subsidy. (By products also beneficiary) honey bees can be placed on plantations.

Introduction of weed cutting by machine can be outsourced. Supervision can be improved on root level. Quality analysing can be improved on root level. Steps may be taken to encourage Exports.

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