CORPORATE EXPOSURE LEARNING AND WORKING CAPITAL MANAGEMENT OF FERTILISERS AND CHEMICALS OF TRAVANCORE LTD.

Dissertation submitted to the Visvesvaraya Technological University, Belgaum in partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

DINI DOMINIC 1AY10MBA43

Under the Guidance Internal Guide External Guide

ACHARYA INSTITUTES
Department of MBA Acharya Institute of Technology Soladevanahalli, Hesarghatta Main Road, Bangalore - 560090

March 2012

STUDENT DECLARATION

I hereby declare that this CORPORATE EXPOSURE LEARNING AND WORKING CAPTIAL MANAGEMENT OF FERTILIZERS AND

CHEMICALS OF TRAVANCORE LTD is prepared by me based on the original study conducted at Fertilizers and Chemicals of Travancore Ltd under the guidance of the internal guide Ms. SREELAKSHMI, Department of MBA and the external guide Mr. C VIJAYAKUMAR[AM, FINANCE, Fertilizers and Chemicals of Travancore Ltd] during the period from 19th December 2011 to 25th February 2012. I declare that this training report has not been submitted to any other institution or University for the award of any diploma or degree.

Date

Dini Dominic 1AY10MBA43

Place : AIT, Bangalore

GUIDE DECLARATION

This is to certify that Dini Dominic, 1AY10MBA43, a bonafied student of IV Semester MBA has undergone an Corporate Exposure Learning and Research project entitled Working Capital Management of FACT, from 19th December 2011 to 25th February 2012 at Fertilizers and Chemicals of Travancore Ltd, under my guidance towards the partial fulfillment for award of Master of Business Administration, Visvesvaraya Technological

University, Belgaum. _______________________ Name of the Guide & Designation Department of MBA Acharya Institute of Technology

ACKNOWLEDGEMENT
Apart from the efforts from me, the success of this Project largely depends on the encouragement and guidelines from many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this Project. I would like to use this opportunity to thank the Management of the Fertilizers and Chemicals of Travancore Ltd for permitting me to do this Project in their Organization. I take immense pleasure in thanking Mr. S VIJAYAKUMAR AM (Fin), My External guide from FACT Ltd, for providing me with the required guidance for doing my Project. I would like to thank Mr. VENKATESWARAN, Deputy Manager, IE, FEDO division, FACT for his help and assistance in carrying out this Project work. I wish to express my deep sense of gratitude to my Internal Guide Ms. SREELAKSHMI, LECTURER, ACHARYA INSTITUTE OF

TECHNOLOGY, SOLDEVANAHALLI, for her able guidance and useful suggestions which helped me to complete this Project in time. I would also like to thank all the Employees of FACT, who had helped me directly or indirectly for the successful completion of this Project work. I also use this opportunity to thank all the Project Trainees at FACT, who had provided me with their valuable suggestions in the successful completion of this Project Work. Finally, yet importantly, I would like to express my heartfelt thanks to my beloved parents for their blessings, my friends and classmates for their help and wishes for the successful completion of this Project.

TABLE OF CONTENTS PART - A Chapter No: I 1.1 II 2A A B 2B 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.9.1 2.9.2 2.9.3 2.9.4 2.9.5 2.1 III 3.1 3.2 3.3 IV 4.1 4.2 4.3 4.4 V 5.1 5.1.1 VI 6.1 6.2 6.3

Title of the Chapter Executive Summary About the Study Introduction Industry Profile Fertiliser Industry Chemical Industry Company Profile Origin and Growth Milestones Vision Statement Mission Statement Objectives Ownership Pattern Product/Service Profile Compitetors Profile Departmentalisation & Work Flow Finance Department Human Resource Department Marketing Department Production Department Materials Department Future Plans and Prospects Implementation of Mckinsey 7 S Model Introduction Hard 'S' Soft 'S' SWOT Analysis Strength Weakness Opportunities Threats Annual Report Directors Report Overall Performance Summary Findings Learning Experience Suggestions

Page No: 1 2 4 5 5 5 6 6 7 7 7 8 8 8 8 9 9 11 13 14 16 17 18 19 20 20 22 23 23 23 23 24 25 25 30 31 31 31

PART - B

Chapter No: I 1.1 1.2 1.3 1.4 1.5 1.6 II 2.1 2.2 2.3 2.4 2.5 2.5.1 2.5.2 2.5.2.1 2.5.2.2 2.5.2.3 2.5.3 2.5.3.1 2.5.3.2 2.5.4 2.5.4.1 2.5.4.2 2.5.5 2.5.6 2.5.7 2.6 III 3.1 IV 4.1 4.2 4.3 4.4 V

Title Executive Summary Brief Introduction Of the Research Organisation Objectives Methadology Major Findings Conclusion General Introduction Theoretical Background of the Research Statement of The Problem Objectives of the Research Scope of the Research Research Methodology Research Design & Design Adopted Sampling Method Sample Size Sampling Technique Sample Description Sources Of Data Sources Of Literature Primary Data Instrument Design Method Adopted For Communication Structure of the Instrument Statistical Tools used for Data Analysis Brief Introduction of the tools used Software Used for the Study Limitations of the Study Data Analysis and Interpretation Data Analysis Summary Major Findings Suggestions Conclusion Bibliography Annexure

Page No: 36 37 37 37 38 38 39 40 41 43 43 44 44 44 44 44 44 44 45 45 46 46 46 46 46 46 47 47 48 49 69 70 72 72 72 73

LIST OF TABLES

Sl.No: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Name of the Table Current Ratio Table Liquid Ratio Table Absolute Liquid Ratio Table Working Capital Ratio Table Inventory Turnover Ratio table Fixed Assets Turnover Ratio Table Debtors Turnover Ratio Table Average Collection Period Table Net Working Capital Table Gross Working Capital Table Schedule of Changes in WC as on 2006-07 Schedule of Changes in WC as on 2007-08 Schedule of Changes in WC as on 2008-09 Schedule of changes in WC as on 2009-10 Schedule of Changes in WC as on 2010-11 Comparative Balance Sheet as on 31.3.'06 & 31.3.'07 Comparative Balance Sheet as on 31.3.'07 & 31.3.'08 Comparative Balance Sheet as on 31.3.'08 & 31.3.'09 Comparative Balance Sheet as on 31.3.'09 & 31.3.'10 Comparative Balance Sheet as on 31.3.'10 & 31.3.'11

Page No: 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68

LIST OF GRAPHS

Graph No: 1 2 3 4 5 6 7 8 9 10

Name of the Graph Page No: Current Ratio Graph 49 Liquid Ratio Graph 50 Absolute Liquid Ratio Graph 51 Working Captial Ratio Graph 52 Inventory Turnover Ratio Graph 53 Fixed Assets Turnover Ratio Graph 54 Debtors Turnover Ratio Graph 55 Average Collection Period Graph 56 Net Working Capital Graph 57 Gross Working Capital Graph 58

CHAPTER - 1

EXECUTIVE SUMMARY

1.1 About the Study.

As a part of My MBA curriculum at ACHARYA INSTITURE OF TECHNOLOGY, Soldhevanahalli under the VISWESWARYA TECHNOLOGICAL UNIVERSITY, Belgaum the Corporate Exposure Learning program (CEL) was conducted for a period of 10 weeks. The Study includes an Organization study of 4 weeks and a Research Project of 6 weeks. The Organization Study was conducted at Fertilizers and Chemicals of Travancore Ltd, Alwaye, Cochin, Kerala. The Training Manager of the Organization Mr. Suresh was my Guide for the Organization Study. As a part of the study I collected the details of the Company under various heads that includes the Vision and Mission of the Company, Objectives, Departmentalization and the Implementation of the Mckinsey Management model in the Company. The SWOT Analysis of the Company was also done. The Findings, Learning Experience in the Company and the Suggestions are also included at the end with the necessary references of the Websites which were used for collecting the data. FACT is a Government of India Undertaking setup in 1944 at Udyogamandalam, on the banks of the river Periyar. The Company wishes to emerge as a leading one in the quality agriculture and industrial input to the farmers of the country. The Objective of the Company is to reduce the cost and upgrade the Technology and thus to enter the new Product lines and to provide various services to the farmers in India. Thus the Company can give a sustainable return on investment to the Investors of the Company. The Company is under the administrative control of department of fertilizers in the Ministry of Chemicals and Fertilizers. The Government of India had become a major shareholder of the Company in the year 1962. The Major Products of the Company include Caprolactum, Ammonium Sulphate, Ammonium Phosphate, bio fertilizers and other intermediary and by Products. The Company has around 30 competitors in the same field. The Major Production unit of the Company is at Udyogmandalam, Alwaye, Kerala and there is another Production Division for the 2

Company at Ambalamukal, Cochin, Kerala. The Major Departments of the Company include the Finance Department, Human Resources Department, Marketing Department, Production Department and the Materials Department. There are other Minor Departments such as the Fire and Safety Department, Maintenance Department and Quality Control Department. Some other minor Divisions in the Company include the FEDO (FACT Engineering and Design organization) and the FEW (FACT Engineering works). Each of the Departments in the Company is headed by the respective General Managers. There is a Chief Managing Director who is the head of the Company. Under him there are three Directors, Marketing Director, Finance Director and the Technical Director. The Marketing Division is under the Marketing Director, the Finance Division is under the Finance Director and all the other Departments are under the Technical director. The General Managers of the respective Departments will come under these Directors. The Marketing Department of the Company looks after the Sales and Distribution of the Products of the Company. The Company has a strong Dealership network all over South India. They also look after the Agronomy Services, Conducts the Marketing Research and Prepares the Sales report of the Company. The Finance Department of the Company looks after the Payroll Billing, Preparation of Journal, Ledger and Trial Balance, Banking, Financial Resources and Materials Accounting, Budget Preparation, Cost Accounting, Auditing,

Preparation of the Financial Statements and Reports and Corporate Planning. The Human Resources Department of the Company looks after the Organizational Human Resource Planning & Development, Retirement & Selection, Wage & Salary administration, Employee records maintaining, Performance Appraisal, Welfare program, Job evaluation, Handling Employee Grievances and Handling the Legal issues within & outside the Organization. 3

The Production Division of the Company looks after the Planning of the Daily Production according to the Annual Target, Submit the Plan to the Government and get the approval, Monitor the Actual Production and Check for any deviation, Make Revision Plans according to the Annual Production and Maintenance of the Plants. The Materials Division of the Company conducts the following activities. They will make sure that the Materials that are required for the Production process are available as the Stock, Procure the Materials that are required for Production, Determine the Quantity of Materials required, Issue the Purchase Order, Import the Materials under the safe approval, Conducts Inspection to ensure the Quality and the Quantity of Materials for Production, Traffic and Movement of the Materials from the Stores to the Production sites, Payment of the Materials purchased, Insurance of the Materials, Determination of the Materials that are required for a particular Product, Determination of the Equipment, Spares and other services for the Production process, and the Storage of the Inventory. The Company was also successful in the implementation of the Mckinsey 7 S Model, a modern management concept in the Organization. It is one of the few Public sector companies who were successful in the implementation of this model.

CHAPTER 2

INTRODUCTION.

2A. INDUSTRY PROFILE. A. FERTILIZER INDUSTRY.

India is an Agricultural Nation. Fertilizer Sector is very crucial for the Indian Economy because it provides an important input for the Agriculture. It has played a pivotal role in achieving self sufficiency in the food grains. India is the Third largest producer and consumer of Fertilizers in the world after China and the United States. The growth of the Indian Fertilizer industry has been largely determined by the policies pursued by the Government. The Industry is capital intensive and the Production process energy intensive. MAJOR PLAYERS FERTILIZERS AND CHEMICALS OF TRAVANCORE LIMITED( (FACT) NATIONAL FERTILIZERS LIMITED (NFL) RASHTRIYA CHEMICALS & FERTILIZERS LIMITED (RCF) MADRAS FERTILIZERS LIMITED (MFL) STEEL AUTHORITY OF INDIA LIMITED (SAIL) NEYVELI LIGNITE CORPORATION LIMITED (NLC) PARADEEP PHOSPHATES LIMITED (PPL) PYRITES, (PPCL) HINDUSTAN FERTILIZER CORPORATION LIMITED (HFCL) FERTILIZER CORPORATION OF INDIA LIMITED (FCI) HINDUSTAN COPPER LIMITED (HCL) FCI ARAVALI GYPSUM & MINERALS INDIA LIMITED (FCIL) INDIAN KRISHAK (KRIBHCO) 5 FARMERS FERTILIZER CO-OPERATIVE PHOSPHATES & CHEMICALS LIMITED

LIMITED (IFFCO) BHARATI COOPERATIVE LIMITED

FUTURE PROSPECTIVE.
The Fertilizer Sector had shown an upward trend in the recent months due to the expectation that the Government may come up with the policies favorable to the Companies in the sector. The Sector becomes attractive due to the unlimited opportunities to increase the volume to fulfill the gap between the Supply and Demand. The Companies with huge investment plans are waiting for the approval of the DFO. So the sector can outperform in the coming years.

B. CHEMICAL INDUSTRY.
It is one of the fastest growing sectors in the Indian economy that contributes 3% to the GDP. It is fragmented and dispersed multi Product and multi faceted. The Major Sectors includes Petrochemicals, Inorganic Chemicals, Organic Chemicals, Fine and Specialities, Bulk drugs, Agrochemicals, Paints and Dyes. Chemicals are sold directly to the large Customers and through Distribution Channels. The Distribution Channels consist of Stockiest and Dealers spread all over India addressing small segments and Retail Market.

MAJOR PLAYERS.
PETROCHEMICALS -Reliance Industries, IPCL Baroda, Nagothane, Gandhar, Haldia Petrochem, GAIL, NOCIL. FINE AND SPECIALITY CHEMICALS ION Exchange, Balmer Lawrie, Dai Ichi Karkaria, Ciba, Hoecht, Foseco, Nalco Chemicals, Clariant, ICI etc BULK DRUGS Sun, Ranbaxy, Cipla, Shasun, Dr. Reddys, Cheminor, IPCA, Lupin, Cadilla, Wockhardt, Aurobindo, and Kopran AGROCHEMICALS - United Phosphorus, Rallis, Excel, Hoechst Agrevo, Novartis, Bayer etc PAINTS AND DYES Asian Paints, Goodlass Nerolac, ICI, Courtlads, Jenson and Nicholson, Colour Chem (Hoechst), Clariant 6

INORGANIC CHEMICALS GACL, Kanoria Chemicals, DCM, Tata Chemicals, SIEL, Andhra Sugar ORGANIC CHEMICALS GNFC, RCF, Rama Petrochemicals, NFL, Deepak Petrochemicals & Fertilizers, Century Enka, Bongaigon Refinery & Petrochemicals, India Polyfibers ltd, Ester Industries ltd.

FUTURE PERSPECTIVE.
In contrast to the global industry the Indian Chemical Industry is showing an upward trend in the growth. This had prompted the insiders to be optimistic about the future of the sector. The surging demand from the Customers, Technological up gradation and several other factors has positioned the Indian Chemical industry to scale new heights. But even then the domestic Companies will be facing stiff competition from their global counterparts with a strong line of Innovative Products. Therefore to remain competitive the Indian companies have to invest more on R& D activities on a continuous basis. Thus in terms of efficiency the companies have to put concerted effort to maintain the competitive position.

2B. COMPANY PROFILE. 2.1 ORIGIN& GROWTH OF THE ORGANIZATION.

The Fertilizers & Chemicals of Travancore Ltd (FACT), Indias first large scale Fertilizer unit was setup in 1944 at Udyogmandalam in the banks of the river Periyar in Kerala State. It had started its Production of Ammonium Sulphate with an installed capacity of 10,000 MT in 1947. It became a Kerala State Public Sector Enterprise on 15th August 1960 and on 21st November 1962, the Government of India, had became the Major Share holder of the Company. The 2nd stage of expansion of FACT was completed in 1962. The 3rd stage of expansion of FACT was completed in 1965 with setting up of a new Ammonium Sulphate plant. The FACT Engineering and Design Organization (FEDO) was set up on 24th July 1965 to meet the emerging need for indigenous capabilities in vital areas of engineering, design and consultancy for establishing large and modern fertilizer plants. FACT Engineering Works (FEW) was established on 13th April 1966 as a unit to fabricate and install equipments for fertilizer plants. The Cochin Division of the Company, the 2nd Production unit was and the first phase was commissioned in 1973 and the Second Phase was commissioned in 1976. setup at Ambalamedu, A traditional field of Fertilizers and Chemicals, 50,000 tons per annum Caprolactum plant at Udyogmandalam was commissioned on 1990. FACT set up a 900 TPD Ammonia plant at Udyogmandalam on February 1994. The Ammonia plant was commissioned in February 1998. As a part of the Diversification plan from the traditional field of Fertilizers and Chemicals a 50,000 tonnes per annum Caprolactum Plant was setup at Udyogmandal and was commissioned in 1990. The main Business of the Company is the Manufacturing and the Marketing of the Fertilizers, Caprolactum, Engineering Consultancy and Fabrication of the Equipment.

2.2 MILESTONES OF THE ORGANIZATION.

1947: Production started 1960: FACT came under Public Sector 1962: Govt. of India becomes major share holder 1971: ICMA award for Technology transfer. 1973: UD 4th stage 150 TPD Ammonia Phosphate 1965: Establishes FACT Engineering & Designing Organization 1966: Establishes FACT Engineering Works 1973: CD I urea plant commissioned 1976: CD II Sulphuric acid plant commissioned 1976: CD II Phosphoric acid plant commissioned 1977: CD II NPK trial run started 1979: CD II NPK commercial Production started 1985: PD Caprolactum license issued 1989: Award for excellence in performance 1986/7 from the PM of India 1990: CD-12 MW captive power plant 1991: PD Caprolactum commercial Production started 1991: UD-new ammonium Sulphate commercial Production started 1993: Foundation stone - 900 TPD Ammonia plant. 1998: 900 TPD Ammonia plant commercial Productions started.

2.3 VISION STATEMENT

To emerge as a leading Company in the business of providing quality Agriculture and Industrial inputs and providing Engineering services for Industrial and Infrastructural facilities.

2.4 MISSION STATEMENT.

To be a market leader in Fertilizers/Petrochemicals and a significant leader in all its other Business including

Engineering/Technology services, Providing maximum Customer satisfaction and reasonable reward to the Shareholders, Adhering to Business Ethics and Professionalism with adequate concern for the Community and the Environment.

2.5 OBJECTIVES OF THE ORGANIZATION.

FACTs objectives are: To Produce and Market Fertilizers & Caprolactum and other Products efficiently and economically besides achieving a reasonable and consistent growth. To effectively manage the Resources and the Assets of the Company to ensure a reasonable return on Investment. To focus on Cost Reduction and Technology Up gradation in order to be competitive in its line of business. To constantly innovate and Develop new Products and Services to satisfy the Customer requirements. To invest in new Business lines, where Profit can be made on a sustainable basis over the long term. To provide services to the farming community by organizing Technical training, Soil testing and other Productivity improvement services in Agriculture.

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2.6 OWNERSHIP PATTERN.

The Fertilizers and Chemicals Travancore Ltd (FACT), is a Schedule A category Government of India Enterprise, under the administrative control of Department of Fertilizers in the Ministry of Chemicals and Fertilizers. FACT was incorporated in 22/09/1943 and in 1962s the Government of India became the Major Shareholder. There is a Board of Directors to manage the Organization. The Chairman of the Board of Directors is the Chief Managing Director. There are six part time Directors and three full time directors on the Board, nominees of Central and State Government. Shares of the Company are listed at National stock exchange of India

2.7 PRODUCT/SERVICE PROFILE.

FACT manufactures Fertilizers, Petrochemicals and Chemicals. FINISHED PRODUCTS: Ammonia Sulphate, Ammonia Phosphate/complex Fertilizers, Caprolactum and Bio fertilizers. EXPORTED PRODUCTS: Caprolactum and Ammonia Sulphate. BYPRODUCTS: Nitric acid & Soda Ash, Gypsum & Carbon dioxide. INTERMEDIARY PRODUCTS: Ammonia, Synthesis gas, Sulphuric acid, Oleum, Sulphur dioxide gas and Phosphoric acid

11

2.8 COMPETETORS PROFILE.

ADARSH CHEMICALS AND FERTILIZERS LTD. ASIAN FERTILIZERS LIMITED. BASANT AGRO TECH (INDIA) LTD. BHARAT FERTILIZER INDUSTRIES LTD. CHAMBAL FERTILIZERS AND CHEMICALS LTD. COROMANDEL INTERNATIONAL LTD. DEEPAK FERTILIZERS AND FETROCHEMICALS CORP. DHARAMSI MORARJI CHEMICALS COMPANY LTD. GODAVARI FERTILIZERS AND CHEMICALS LTD. GUJARAT NARMADA VALLEY FERTILIZER COMPANY LTD. KHAITAN CHEMICALS AND FERTILIZERS LTD. LIBERTY PHOSPHATE LTD. M P AGROINDUSTRIES LTD. MADRAS FERTILIZERS LTD. NAGARJUNA FERTILIZERS AND CHEMICALS LTD. NATIONAL FERTILIZERS LTD. OSWAL GREEN TECH LTD. RAASHI FERTILIZERS LTD. RAMA PHOSPHATE LTD. SHEETAL BIO AGRO TECH LTD. SHIVA GLOBAL AGRO INDUSTRIES LTD. TEESTA AGRO INDUSTRIES LTD.

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2.9 DEPARTMENTALISATION AND WORK FLOW 2.9.1 FINANCE DEPARTMENT.

The Finance Department in FACT is a centralized Department. STRUCTURE. CMD

Director (Finance)

DGM (IA)

DGM (Finance)

Manager (IA)

CM (Bills& Materials)

CM (Sales

CM (Cost, MIS& Budget)

CM (Gen. A/c)

Abbreviations.

Mgr (Cash, Banks & Payroll)

Mgr (Tax& Duty)

CMD: Chief Managing Director, DGM: Deputy General Manager, IA: Internal Accounts, CM: Chief Manager, Gen. A/c: General Accounts, Mgr: Manager

FUNCTIONS. The Important functions of the Finance Department are Payroll, Billing, Preparation of Journal, Ledger and Trial Balance, Banking, Financial Resources and Material Accounting, Budget Preparation, Cost Accounting, Auditing, Preparation of Financial Statements and Reports and Corporate Planning

13

RESPONSIBILITIES OF THE PERSONNEL AT EACH LEVEL & WORK FLOW. a. Director ( Finance) Control and co-ordinate all the employees and ensure that they do the required functions in the proper manner. Prepare the strategies that are required for the Financial development b. DGM (IA) He Have to do the following activities viz

Operational/Systems/Management Audit, Proprietary Audit &Audit of sanctions Routine Audit and Special Audit and surprise Verification of Physical stock and have to Prepare the Report c. DGM (Finance) In charge and have to control the Bills& Materials, Sales, Cost, MIS, Budget Preparation and the General Accounts section in the Finance Department. d. CM (Bills& Materials) He have to prepare the Bills of each purchases and send it to the Accounts Department for the Verification and Payment. e. CM (Sales) He have to be Accountable for the Selling and Distribution of the Products and the by Products Should record the transactions that are related to the Sales Transfer of the information from the depots to the HO and the compilation of the Reports. f. CM (Cost, MIS& Budget) Ensure that Cost Accounting is done on the proper manner based on the Accounting Standards MIS Implementation and functioning in the Organization, The collection of the details for the Budget and Budget preparation Preparation of the P& L Account for each division. 14

g. -

CM (General Accounts) Look after the Cash, Banks, payrolls, Tax& Duty section in the Finance Department.

h. -

Mgr (Tax &Duty) Payment and calculation of the Income Tax, Sales Tax, Customs duty, Export and Import Duty of the Organization.

i. -

Manager (Cash, Banks& Payrolls) Payment, Receipt and Storage of Cash, Cheque, Bank drafts, and Postal Money orders, Maintenance of Petty Cash and Cash Book and Bank Dealings. Payment of the salary to the Employees in the organization and Other duties that are assigned by the Authorized Officer.

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2.9.2 HUMAN RESOURCE DEPARTMENT.

The Human Resources Department in the Company is also a centralized Department. STRUCTURE. GM (HR) Manager (Public Relation)

DGM (Admin)

CM (Welfare)

CM (IR)

CM (Legal)

CM (Establishment)

CM (Trg)

CM (IE)

Abbreviations. GM: General Manager, HR: Human Resources, DGM: Deputy General Manager, Admin: Administration, CM: Chief Manager, Trg: Training, IE: Industrial Engineering.

FUNCTIONS. The Functions of the HR department are Organizational Human Resource Planning & Development, Retirement & Selection, Wage & Salary Administration, Employee Records Maintaining, Performance Appraisal, Welfare Program, Job evaluation, Handling Employee Grievances and Handling the legal issues within & outside the Organization.

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RESPONSIBILITIES OF THE PERSONNEL AT EACH LEVEL AND WORK FLOW.

a. -

GM (HR) He is the General Manager who is responsible for all the activities of the HR department which includes Welfare of the Employees, Industrial Relations, Establishment,

b. c. d. e. f. g. -

h. i. -

Administration, Legal, Training of the new & existing Employees, Industrial Engineering and Public Relations. DGM (Admin) Check the Performance of each Department and act as a link chain between them and prepare the consolidated Report. CM (Welfare) Create healthy environment and working conditions for the Employees. Raise the standard of living of the employees. CM (IR) Communication between the Management and the Trade union. Grievance handling and take disciplinary actions when required Handling of the issues that are related to Promotion, Transfer and Rotation. CM (Establishment) Performance Appraisal and Retrenchment. Transfer and rotation Recruitment and Selection. Wage & Salary administration. CM (Legal) Handle the cases of the Company with the outside and the inside parties. CM (Training) Provide training to the new employees and to the existing employees when their performance had reached below the mark. CM (Industrial Engineering) Decide the number of employees required to perform a particular project. Decide the remuneration for the employees that are included in the project. Decide the time period required to complete that particular project. Manager (Public Relation) Maintain the relation of the Company with that of the public.

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2.10.3 MARKETING DEPARTMENT.

The Marketing Department in the Company is also a centralized Department.

STRUCTURE.
Director (Marketing)

GM (Marketing)

CM (Distribution) CM (Sales)

CM (Ag

AM (KL)

AM (TN)

AM (Kar)

AM (

Abbreviations. GM: General Manager, CM: Chief Manager, AM: Area Manager, KL: Kerala, TN: Tamil Nadu, Kar: Karnataka, AP: Andhra Pradesh. FUNCTIONS. The Functions of the Marketing Department includes Sales, Market Research, Agronomy, Preparation of Sales Report, Processing and Sending replies to Audit queries at the divisional level, Liaison with bulk buyers, Central and State Government officials and Officials of Fertilizers Association of India, Sales force motivation through Internal and External Training Programs. RESPONSIBILITIES OF THE PERSONNEL AT EACH LEVEL & WORK FLOW. a. Director (Marketing) Head of the whole who is responsible for all activities of Marketing Department. Take care of the various activities such as Sales, Distribution and Agronomy. Formulate strategies for the Marketing and the Selling of the Product.

b. -

c. d. e.

GM (Marketing) General Manager of the Marketing Department. Directly responsible for all the activities of the Marketing Department. 13 Implement the strategies that are formulated by the Marketing Director Assign the duties to the concerned Chief Managers and the Managers. CM (Sales) Control and co-ordinate the Sales of the Product through the various channels. Conduct the Marketing Research to understand the market conditions Calculate the approximated demand of the Product for the future and inform it to the Production Department. Prepare the Sales Report. Process and send replies to the queries that are related to the Audit from the various divisional Departments. Motivate the sales force through the internal and the external training programs. CM (Distribution) Dispatch the required Product to the Customers in time. Synchronizations of the Products & ensure the availability of Materials. Conduct the Research to identify the trends in the Distribution network. Ensure that the Customer get the required Product in time. CM (Agronomy) Create the required awareness among the Customers about the Products of the Company and their uses. Educate the Farmers about the various new techniques for Farming. Supervise the Agronomy services of the Company.

2.10.4. PRODUCTION DEPARTMENT. STRUCTURE.

GM (UD)

CM (Production)

Maintenance.

Pr

CME

Traffic

NH4

NH4SO4 14

NH4PO4

H2SO4

Phosphoric A

Abbreviations. GM: General Manager, UD: Udyogmandalam Division, CM: Chief Manager, CME: Chief Maintenance Engineer, CSP: Chief Superintendent of Production, NH4: Ammonium, NH4SO4: Ammonium Sulphate, NH4PO4: Ammonium Phosphate, H2SO4: Sulphuric Acid. FUNCTIONS. - Plan the Daily Production according to the Annual Target. - Submit the Plan to the Government and get the approval. - Monitor the Actual Production and check for any deviation. - Make Revision Plans according to the Annual Production. - Maintenance of the Plants.

RESPONISIBILITIES OF THE PERSONNEL AT EACH LEVEL & WORK FLOW.

a. GM (UD) - Decide the Production target of each and every Product based on the MoU made between the Government and the Company. - Control and co-ordinate all the Employees under him and ensure that they work properly b. CM(Production) - Monitor the actual Production and check for any deviation.

c. CSP -

Make the Revision Plans according to the actual Production. Ensure that the Materials required for the Production is available in the Department. Plan the daily Production according to the Annual target. Calculate the Raw Material required for the actual Production process. Prepare the Budget with the provision for each and every activity in the Production process. Give the contract and decide when to produce

d. CME - Conduct the inspection of the Plants usually in the month of April to make sure that the plant is capable to work for the next year. - Plant maintenance and Prepare the Maintenance Report and give the Report to the Top Management. - Make sure always that the machine is in a good condition to work.

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2.10.5 MATERIALS DEPARTMENT.

STRUCTURE. GM (Materials)

CM (RM Purchase)

Mgr (Stores)

Mgr (Tra

Dy CM (RM)

Mgr (ESS)

Mgr (FFTS)

Abbreviations. GM: General Manager, CM: Chief Manager, RM: Raw Materials, Mgr: Manager, ESS: Equipments, Spares and other Services, FFTS: FEDO, FEW, Transportation and stores, FEDO: FACT Engineering and Design Organization, FEW: FACT Engineering works. RESPONSIBILITIES OF THE PERSONNEL AT EACH LEVEL. a. GM (Materials) - Ensure that the Materials (90% Raw Materials) and other Materials required for the Production process are available as the Stock in the Stores. - Control and co-ordinate under him and ensure that they work properly - Decide from where to purchase the required Materials. b. CM (RM Purchase) - Import the Raw Materials under the safe approval of the Purchase committee. - Procurement of the Materials required for Production. - Issue of purchase order and Pre and post dispatch inspection. c. Dy CM (RM) - Determination of the quantity of Materials required for the Production process. - Insurance and Payment for the Materials that are purchased. - Determination of the Materials required for the Production of a particular Product. 16 d. Mgr (ESS) - Determination of the equipments spares and other services that are required for the Production process - Inform them to the Materials Purchase Department. - Determine the quality and other features of the equipments and the Spares that are to be purchased. e. Mgr (FFTS) - Project related and In-house procurement for FEDO & FEW. - RM Transportation - RM Storage - Technical assistance for RM handling.

f. Mgr (Stores) - Receive Inventory - Hold Inventory - Control inventory - Disposal g. Mgr (Traffic) - Loading of the Materials - Arrangement of the Materials - Movement of the Materials

2.12 FUTURE PLANS AND PROSPECTS

FACT has submitted a Financial Restructuring proposal to the Government of India, requesting assistance to tide over the interest burden and for the sustainable growth of the Company in the long run. On the implementation of the restructuring package and new Projects for Expansion and Modernization, FACT is expected to sustain Profitability in the coming years. The profitability will further improve once FACT is able to switch over from Naphtha to LNG/NG as feed stock is expected by 2012-13.

17

CHAPTER 3

Implementation of MCKINSEYS 7 S Model.

18

3.1 INTRODUCTION
The Mckinsey 7 S Model was developed in the early 1980s by Tom Peters and Robert Watersman, the two consultants who worked in the Mckinsey & Company Consulting firm. The model is used to analyze how well the Organization is positioned to achieve its intended objectives. It helps us to improve the performance of the Company, examine the likely effects of the possible changes within the Company, align the Departments and process in the situation of a Merger or Acquisition and to determine how best to implement a proposed strategy.

THE SEVEN ELEMENTS.

HARD ELEMENTS.
STRATEGY STRUCTURE SYSTEM

SOFT ELEMENTS.
SHARED VALUE SKILL STYLE STAFF.

Hard elements are easy to define and identify and the management can directly influence them. But on the other hand soft elements are more difficult to describe, are less tangible and are more influenced by the culture. The interdependence between these hard and the soft elements can be identified from the following figure.

Now let us have a brief look on each element. Strategy: the plan devised to maintain and build competitive advantage over the competition. Structure: the way the organization is structured. i.e. who reports to whom Systems: the daily activities and procedures that the staff members are engaged in to get the job done. Style: the style of the leadership adopted in the organization 19 Staff: the employees and their general capabilities. Skill: the actual skill and competencies possessed by the employees working in the Company.

3.2 HARD S.
Strategy.

The main strategy followed by the Company is Product Differentiation. The main objective of the organization is the economic Production of the Fertilizers and Caprolactum, constant innovation to produce new Products and Technological Up gradation. The lack of fund for the achievement of these objectives is the main constraint faced by the Company. The Company is mainly concentrating on South India. Factamfos is the Major Product of the Company with the maximum demand and a change in the preference of the Customers is not expected in the near future.

Structure.
The Company has a Centralized Marketing Division, HR Division, Finance Division and Materials Division. The Chief Managing Director is the Head of the Company, under which there are three Functional Directors for Marketing, Technical and the Finance, who constitute the Top Management of the Company. Each Division in the Organization is headed by the General Manager. There are Deputy General Managers and the Chief Managers who works under the General Managers who constitute the Middle level management. The Functional Managers come under the Middle level managers and all the non managerial employees in the organization functions under the respective Functional Managers. The Company follows a Centralized decision making system.

System.
The Main systems in the organization include Marketing, Technical and the Finance. Except the Marketing and the Finance General Managers all the other General Managers of each division directly reports to the Technical Director.

3.3 SOFT S. Shared Values.

The core values followed by the Company include the Customer satisfaction, reasonable reward to the Share holders, follow the Business Ethics, and the commitment to the Community and the Environment. The value system followed by the Company is so strong. Each and every Employee in the Organization try to adhere to the values uphold by the Company

Style.
The Management style is not so liberal. Since it is a Public Sector Undertaking the major decisions of the Company is taken by the Government after the consultation with the Top management of the Company. But it is not so effective since the 20

Employees of the Organization may have more idea about the working and the requirements of the Company than the Government. The Employees of the Company are really competitive and co-operative.

Staff
The Employees of the Organization have good work experience than any other Company. There are 3,197 Employees who work in the Company, out of which 837 are Managers and the rest are Non managers. But the Company is selecting new Employees to the level of the Management Trainees who are in their training period now. Even though the present permanent Employees of the Company has a handful of work experience more and more new Employees are to be included in the organization to ensure the competitiveness of the Company. It is also a part of the Corporate Social Responsibility of the Company.

Skills
The major skill represented in the Company is the dedicated Employees and their competitiveness due to their good work experience. The Marketing Division of the Company is also very strong due to which the Products of the Company had become the leader in the South Indian market. The present Employees are capable but more and more youth is also required to ensure the competitiveness of the Company. They can also give new ideas and concepts that can be beneficial for the Company. The Employees are evaluated by the Performance Appraisal program.

21

CHAPTER 4

SWOT ANALYSIS

22

4.1 STRENGTH MICRO LEVEL

High capacity utilization. High quality Products. FACTAMFOS is a Premium Product in complex Fertilizer containing Sulphur. Sustained operating parameters of the Plant at good level and Productivity of Plant at good level Well-qualified and Technically skilled manpower with good support from the end segment One of the two Producers of Caprolactum in India with world-class quality ISO Certification to most of the divisions and strong Dealership network in South India Good Engineering and Consultancy design, perhaps one among the best in Indian Fertilizer segment FEDO has own process know-how for Hydrogen, Sulphuric Acid, Ammonium Sulphate, DAP and complex Fertilizers FEDO has worked in association with many International process licensors, and has acquired the capacity of customizing and designing projects to the requirements of the Indian Consumers. FEDO is an approved center of surveyors and audit for Portliness, Installation, Non-destructive testing energy Audits, ISO Audits and so on.

4.2 WEAKNESS MICRO LEVEL.

The government controls the prices of Finished goods, but the prices of Raw Materials are uncontrolled. So it is forced to operate in an uneconomic situation The average age of Employee is very high (49 Yrs). The number of younger professionals is decreasing and some managerial personnel (95) are forced to handle more than one position due to freeze on Recruitment. Lack of Product line diversification and Working Capital Resources Several unskilled jobs, which could be sub contracted are undertaken by the permanent Employees at high cost

4.3.OPPORTUNITIES MACRO LEVEL.

Less expensive alternative sources of energy and other inputs Acquiring Technology to utilize other available Resources Expanding Production capacity to drive benefits of scale FACT Ammonium Sulphate has greater demand in foreign countries Opportunities for Product diversification and huge asset base

4.THREATS MACRO LEVEL.

Unfavorable policy of the Government. Diminishing market for Caprolactum. Infiltration of more Fertilizer Products to the Southern Markets from other Producers. Inherent bottlenecks in Infrastructure facilities Lack of Product Differentiation. High pricing and scarcity of raw Materials. 23

CHAPTER -5

ANNUAL REPORT

24

67TH ANNUAL REPORT OF THE COMPANY. 5.1 DIRECTORS REPORT.

The overall performance of the Company during the Financial year 2010-11 is impressive.

5.2 OVERALL PERFORMANCE.

Particulars 1 Production / in Tones Factamfos 20:20 Ammonium Sulphate Caprolactum 2 Sales / In Tones Fertilizers Caprolactum 3 Financial / In Lakh Turnover Profit before Interest, Depreciation & Tax Profit/Loss(-) after tax (-) 4,932.67 (-) 10,383.51 2,51,183 13,438.72 2,14,161 3,654.11 9,32,670 44,136 10,44,893 38,523 6,44,454 2,00,311 44,345 7,53,744 1,79,546 42,006 2010-11 2009-10

From the above table it can be seen that the Company has achieved considerable improvement in the Production of Ammonium Sulphate and Caprolactum. But there is a shortfall in the Production of Factamfos as compared to the previous year due to the Shortage of the Phosphoric acid. Due to the accumulated losses, the Company has decided not to pay the Dividend to the Shareholders this year. Due to the shortfall in the Raw Materials the Production had fall down much below the targeted levels. In order to improve the Turnover and Profitability, the Company is concentrating in Marketing of the traded Products. So the Company is expecting an improved Physical and Financial performance during the financial year 2011-12. 25

5.3 MANAGEMENT DISCUSSION AND ANALYSIS REPORT.

5.3.1 RESEARCH AND DEVELOPMENT. The Research and Development center of the Company functions with the aim of carrying out in depth research in new Fertilizer formulations, Innovation in the Fertilizer Production for Cost control and Value addition of by Products, existing Product lines and waste utilization in the Organization. It also carries out specialized services such as the Monitoring and Controlling the quality of the Finished Products before they are dispatched to the Market and periodical collection of Product Samples from field godowns, Distributors and Dealers for the evaluation of Post dispatch Quality as a part of three tiers Quality control system being practiced by the Company. It is also producing Bio Fertilizers and dispatching directly to Marketing area of the Company in all the four Southern states. 5.3.2 PERFORMANCE HIGHLIGHTS. 5.3.2.1 UDYOGMANDALAM DIVISION. During the year 2010-11 Udyogamandalam Division has produced 164594 MT of Factamfos 20:20, including 42714 MT of Zincated Factamfos and 200311 MT of Ammonium Sulphate, which shows an improvement compared to 2009-10. UD has won the prestigious National Safety Council Safety Award for the year 2010 based on the lowest accident rate among the Large scale Industries. 5.3.2.2 PETROCHEMICAL DIVISION. The Production of Caprolactum for the year 2010-11 was 44345 MT. The Division was the State winner of Safety awards 2010

constituted by the Department of Factories and Boilers, Government of Kerala in the category of very large chemical factories. 5.3.2.3 COCHIN DIVISION. During the financial year 2010-11 Cochin Division produced 479860 MT of Factamfos 20: 20. The Production of the nutrient Nitrogen and Nutrient P205 was 95809 MT each as against 577200 MT during the year 2009-10. During the year 2010-11 the division produced 245380 MT of Sulphuric Acid and 36050 MT of Phosphoric Acid. 5.3.2.4 MARKETING DIVISION. During the financial year 2010-11 the Fertilizer sales was 9.33 lakhs MT. Sale of Factamfos during the year was 642732 MT. The Sale of Ammonium Sulphate during the year was 220080 MT as compared to 144986 MT during the previous year.

26 5.3.2.5 FEDO. During the year 2010-11 FEDO has achieved a Turnover of Rs. 975 lakhs. FEDO has considerably improved its order position in comparison to the previous year. FEDO is hopeful of getting work orders in the LPG Bottling units and Oil Terminals of HPCL, IOCL and BPCL. 5.3.2.6 FEW. The Turnover of FEW for the year 2010-11 was Rs. 640 lakhs. FEW expect an increase in turnover during 2011-12, a sustained demand from process industry for Pressure vessel and Heat exchangers for replacement as well as capacity expansion. The demand for fabricated components for shop building is expected to bring order to FEW. 5.3.2.7 HUMAN RESOURCE DEVELOPMENT. The Industrial Relations situation was generally peaceful during the year 2010-11 without any work stoppage that affect the normal operations of the Company due to HR related issues. Considering the attrition of Technical hands and Professionals, during the year 2010-11 the Company has recruited technically/ professionally qualified candidates as Management Trainees. The recruitments were done based on the directions issued by the Government of India. 5.3.3 CORPORATE SOCIAL RESPONSIBILITY.

Village Adoption Program Under this Program, 10 progressive farmers with at least 1 acres of land were identified and the soils of their plots were analyzed for Major, Secondary and Micro nutrients. Based on the Soil test results, the soil and the crop specific nutrients required were developed by FACT and are given to the farmers. The Program was conducted in 7 such villages in Kerala, Tamil Nadu, Andhra Pradesh and Karnataka. Farmer Training Program This Program was conducted to impart training to the limited group of 20-25 Farmers on the balanced use of fertilizers based on the soil test results. Pollution Control Activities Production units of FACT are certified for ISO 14001, which always give top most priority to ensure clean air and better living environment to the inhabitants around the factory. The Effluent Treatment plants and emission control facilities are kept in operation along with the parent plants throughout the year and treated liquid effluents and gases emissions discharged from plants confirmed to the standards prescribed by the Kerala State Pollution Control Board.

27

5.4 SHORT TERM PROJECTS.

In order to improve the Productivity and Efficiency of FACT certain short term projects were undertaken by the Company. Some of them are the following. 1. Feed Stock Conversion of Ammonia Plant to LNG. 2. Conversion of fuel for the Boilers to LNG 3. Automation of Bagging & Wagon Loading system at Cochin Division. 4. Sulphuric Acid Storage facility at Willingdon Island. 5. Automation of Mixing Center at Cochin Division. 6. Revamp of Phosphoric Acid Plant at Cochin Division 7. Production and Marketing of SSP.

5.5 LONG TERM PROJECTS.

Some of the Long term Projects of the Company that are waiting for the approval are the following. New Urea Plant at Udyogmandalam New 1000 TPD NP Plant.

5.6 DIRECTORS OF THE COMPANY.

1. Dr. V. Rajagopalan. 2. Shri. S.C. Gupta 3. Ms. Pratibha Karan 4. Shri. T.M. Jeyachandran 5. Prof. R.K.Mishra 6. Prof. Khan Masood Ahmad. 7. Dr. B.S.Ghuman 8. Dr. B.Bodeiah 9. Shri S.Balan

5.7 AUDITORS REPORT.

The Financial Statements of the Company are in compliance with the Accounting Standards. The Company had maintained the proper Accounts and the Inventories were physically verified by the Management. The Company had not granted or taken any loans. But the Internal control system needs to be strengthened especially considering the emerging requirements, to commensurate with the size of the Company and nature of its Business for the purchase of Inventory and Fixed Assets and for the Sale of goods and services. The Company had not entered into any Contract. The Company has been generally regular in depositing undisputed statutory dues including Provident fund, Employees state Insurance, Income Tax, Service Tax, Sales Tax, Customs Duty, Excise Duty and other Material statutory dues applicable to it with the appropriate authorities during the year and there were no outstanding as at March 31, 2011. The accumulated loss incurred by the Company is more than 50% of its Net worth and it has incurred Cash losses during the year and also in the 28 immediately preceding financial year. The Company has not defaulted in the payment of the dues to Banks. The funds raised by the Company on Short Term basis have not been used for long term Investments. The Company has not made any preferential allotment of Shares to parties and Companies covered in the register. The Company has not issued any Debentures and has not raised any money by public issued during the year. The Books and Records of the Company are carried out in accordance with the Generally Accepted Auditing Principles (GAAP) in India and there is no instance of fraud noticed or reported during the year.

29

CHAPTER - 6

SUMMARY

30

6.1FINDINGS.
The following are the Major Findings that are obtained from my study at Fertilizers and Chemicals of Travancore Ltd, Alwaye, Cochin, Kerala. The Major Strength of the Company is its Employees who are very competitive, well qualified and has good work experience record also. The Company has a strong Dealership network in all over South Indian which helps them to be a leading producer and distributor of the Fertilizers and Chemicals and they provide many services to the Farmers other than their Products.

 The Company was successful in the implementation of the Mckinsey 7 S model. Probably it is the only Public Sector Company who was successful in implementing this modern concept compared to the other Public Sector Enterprises. The Major constraint to the Company is the Policies of the Government in terms of fixing the Price of the finished good but the price of the Raw Material is very high. Thus the Company is operating under an uneconomical condition. The Infrastructure facilities of the Company and the Management of the Working Capital Resources in the Company should be improved. The Company also requires more young professionals in it.

2. LEARNING EXPERIENCE.
The Learning Experience in the Company was really awesome. The Training Manager was able to guide me in the proper direction. Even the other Employees of the Company helped me by providing me with all the required details for my study. They were free enough to answer all my questions. As it was a Government Company they provided me with all the necessary freedom as a Project Trainee in the Company.

3. SUGGESTIONS.
The following are some of the important Suggestions based on my study at FACT. Include more and more fresh blood into the Company to increase the further Productivity of the Company. The Company should try to enter into new Geographical Market and should concentrate more on the Exporting section. More and more developments are required in the Infrastructural facilities of the Company and thus to increase the Production capacity. The Company should go for the diversification of the Products and should try to enter into new Product lines. 31

APPENDIX

32

1. PROFIT AND LOSS STATEMENT OF THE COMPANY FOR THE YEAR ENDED 31st

INCOME Sales Less: Excise Duty Net Sales Subsidy/Concession on Fertilizers Gross Income from Contracts & Services Other Income Total Income EXPENDITURE Materials Consumed Cost of Traded Products Sold Repairs and Maintanence Employees Remuneration and Benefits Other Expenses Materials and other direct charges on contracts Interest & Financing Charges Depreciation and Impairment loss Increase / Decrease in Stock Total Expenditure Operating Profit/Loss Adjustments Profit/Loss before tax Provision for tax Provision for fringe benefit tax Profit/Loss after tax Profit/Loss b/f from previous year Net Deficit carried to the BS
MARCH, 2011.

Rs. In Lakhs 134237.73 5118.57 129119.16 115927.52 1025.95 6040.78 252113.41 143220.81 8847.29 4512.46 26804.6 54414.2 164.75 14108.67 4262.72 -110.57 256224.93 -4111.52 821.15 -4932.67 0 0 -4932.67 -45605.36 -50538.03

33

2. BALANCE SHEET OF THE COMPANY AS AT 31ST MARCH 2011.

As at 31.03.2011 I. Sources of Funds 1. Shareholders Funds a. Share Capital b. Reserves and Surplus 2. Loan Funds a. Secured Loans b. Unsecured Loans TOTAL II. Application Of Funds 1. Fixed Assets (Net) 2. Investments 3. Current assets. Loans and advances a. Inventories b. Sundry Debtors c. Cash and Bank Balances
d. Other Current Assets

64707.2 79.37 64786.57 65218.06 31631.89 96849.95 161636.52 35729.55 13840.06 61374.75 11229.91 5525.69
37856.51

e. Loans and Advances Total Current Assets 4. Less: Current Liabilities and Provisions a. Liabilities b. Provisions Net Current Assets Profit and Loss Account TOTAL
34 3. WEBSITES.
1. www.fact.co.in 2. www.fert.nic.in

18156.42 134143.28 55542.46 17071.94 72614.40 61528.88 50538.03 161636.52

3. en.wikipedia.org/wiki/Mckinsy_7S_Framework. 4. www.indianchemicalcouncil.com

4. COMPANY MANUALS.
The Company does not have the Publication of any Manuals other than the Monthly Newsletter which is published in the Website.

5. ARTICLES WITH COMPANY.

RESPECT

TO

THE

Article that appeared on the THE HINDU Dated 15/3/2011 about FACT, Alwaye,Cochin,Kerala.

SAFETY AWARDS PRESENTED.

Staff Reporter KOCHI: Hindustan Organic Chemicals, Fertilizer and Chemicals Travancore, Cochin Shipyard Limited and Bharat Petroleum Corporation were among the Public Sector Companies that received Safety Awards 2010 on Monday at a function organized by the Department of Factories and Boilers. The Kerala Minerals and Metals Limited, Chavara, was chosen as the Best State Public Sector Undertaking by the Department. The Awards, instituted by the Department since 2008, are aimed at honoring units and individuals, who have done well in promoting Safety, Health and Welfare of the Workers in the Industrial Undertaking. The Awards were given away by K.B. Valsala Kumar, Principal Secretary, Employment and Rehabilitation in the presence of the senior Officials of the Department of Factories and heads of several Public Sector Undertakings of the State. Among the awards for individuals, HLL Lifecare Limited, Thiruvananthapuram, was adjudged as having the Best Safety committee. C.P Wilson of Binani Zinc Limited was chosen as the Best Safety Officer. B. Vijayakumar of Cochin Shipyard Limited was chosen as the Best Medical Officer by the Department. Binani Zinc, Binanipuram was chosen for the Best Safety Publication Award, Cochin Shipyard was chosen for producing the Best Safety Film. Bharat Petroleum Corporation bagged the award for running the Best Occupational Health centre.

35