GENERAL INTRODUCTION

In the modern world of tough competition and rivalry among the companies it has become necessary that one should be able to understand each and every aspect of the functioning of the organization than only concentrating on his work alone. Through the study we will get awareness about the functioning of the organisation, its organisation structure, vision & mission , communication pattern etc. In India, major occupation is agriculture. It is the backbone of our economy .But in recent years, the productivity in agriculture sector has been declining. Farmers lack knowledge about use of various good chemical fertilizers in our country . It affects the performance of agriculture sector. The second World war resulted in a severe food crisis. It resulted in import of large quantities of food grains from other countries. Large amounts were spent for import of food grains. At that time the farsighted administrator of Travancore

Dr.C.P.Ramaswami Iyer paved the way for setting up a chemical fertilizer factory in an unheard village of Kerala to grow more food using the wonder replenished chemical fertilizer. Thus FACT established at Udyogamandal on the banks of the

river Periyar in 1944 . It was since then the largest fertilizer manufacturing company in India. FACT was since then the first large scale manufacturer of chemical fertilizer of the entire country. The company's main business is manufacture and marketing of (a) Fertilizers (b) Caprolactum and Engineering Consultancy and Fabrication of Equipment This organisation study was conducted at Udyogamandal division of FACT in partial fulfillment for the requirements for award of Degree Master of Business Administration(MBA) of Mahatma Gandhi University, Kottayam during May 2011 The study includes the objectives of company, functioning of various departments, organization structure of company etc.
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OBJECTIVES OF THE STUDY

The organisational study was done at FACT, Udyogamandal to achieve the following objectives 1. To understand in detail about the overall working of the organization 2. To study about different departments & its functioning 3. To study the organisational structure of the company
4. To study the manufacturing process of the company

SCOPE OF THE STUDY

The organisation study helped to understand the working of an organisation. In order to understand how different management principles are applied in the organisation this organisation study helped very much. To get practical knowledge about the organisation in detail this study helped.

METHODOLOGY OF THE STUDY

[A] PRIMARY DATA COLLECTION

Interview with different managers, departmental heads etc Direct observation Plant visit [B] SECONDARY DATA COLLECTION Company manuals Website of FACT Past records from library

LIMITATIONS OF THE STUDY

1. Lack of co-operation from some departmental heads due to their heavy work load. 2. Data collected from the library need to be updated

NATURE OF FERTILISER INDUSTRYFertilizer is generally defined as any material, organic and inorganic material or synthetic, which supplies one or more of chemical elements required for the growth of plant. The nutritional requirement of the soil keeps on increasing in the coming years. The fertilizer industry must be healthy enough to meet the requirements of nutrients and attain a reasonable level of self-sufficiency

WORLD SCENARIO
Use of manure and fertilizer as old as agriculture itself. Some other materials like wood ash from burning the fallen trees, cattle dung were used in earlier years. Then the fertilizer industry was developed & the agriculture sector developed. The disappearance of frontiers companied with the improvements in the technology of fertilizer manufacture & more transportation led to a growing role fertilizer for producing the needed food & fibre. Important fertilizer producing countries in the world are Russia & USA. Other leading countries include China, Canada, France & India. In US the fertilizer industry has separate segments for producing and marketing nitrogen, phosphate or potash intermediates and products. In European Union, there are several regulations

regarding health & safety conditions of employees & general public, regulations regarding the safe storage & transportation of materials etc. They try to minimise the environmental impact using such regulations also.

TABLE -WORLD FERTILIZER SUPPLY AND DEMAND

PARTICULARS TOTAL SUPPLY TOTAL DEMAND SURPLUS 10743 13983 19104 24692 2008-09 2,12,225 2,01,482 2009-10 2,19,930 2,05,947 2010-11 2,30,334 2,11,230 2011-12 2,40,711 2,16,019

INDIAN SCENARIO
In India several people depend on agriculture for their livelihood. Here agriculture contributes 25% to GDP. There is wide scope for fertilizer industry. With technological advancement fertilizer industry is also developing. There is advanced manufacturing practices, innovative new products developing etc. After the 2nd world war a severe food crisis happened in India. Our agricultural production declined. Then we had to import large quantities of food grains from other countries. In order to meet our own requirements, several fertilizer plants were established. The first plant was established in Chennai. Then FACT, FCI etc established. The Fertilizer And Chemicals Travancore Ltd (FACT) at Cochin in Kerala & Fertilizers Corporation of India (FCI) , Bihar were the first large sized fertilizer plants set up in the 40s and 50s with a view to establish an industrial base to achieve self sufficiency in food grains. Then, green revolution in late 60s gave a faster growth of fertilizer industry in India. Later period fertilizer production capacity. Later, more fertilizer plants were established in different parts of the Country & thereby assortment of assortment of fertilizers like Phosphatic Acid, Ammonium Sulphate etc grew more witnessed a significant addition to the

STATE SCENARIO
The state has good fertile land & suitable climate for agriculture. Even though the states agricultural productivity is decreasing year by year. Especially production & cultivation of commercial crops like rubber shows declining trend in production.. Industrys production had shown increasing trend during past few years. Industry leaders sought Governments support in reducing the time period for mandatory environmental clearances for setting up chemical units. The industry also urged Government to take necessary steps to bring down petroleum products prices, which would reduce raw materials costs.
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HISTORY OF FACT
THE BEGINNING
In India agriculture has very much importance. It is the backbone of our economy. We have been tilling the land & reaping the harvests for hundreds of years . Later we reached in a situation where land became less bountiful, yield became lower. We had to depend imports of food grains to meet our own requirement. The major reason was land lost its fertility through repeated cultivation over the long years. We used organic manure & other old methods for farming purposes. Advanced countries had

discovered the answer to this problem by use of chemical fertilizers. Later India also imported chemical fertilizers for our requirement. The second world war resulted in a severe famine & there was a huge food crisis. Situations made us to think. Chemical fertilizer was the answer, But we didnt have the technical know- how or raw materials .At that time the farsighted administrator of Travancore Dr.C.P.Ramaswami Iyer paved the way for setting up a chemical fertilizer factory in an unheard village of Kerala to grow more food using the wonder replenished chemical fertilizer. Thus FACT established at Udyogamandal on the

banks of the river Periyar in 1944 . First chairman was N. Gopalaswami. FACT was since then the first large scale manufacturer of chemical fertilizer of the entire country. In 1947, FACT Udyogamandal started production of Ammonium Sulphate with an installed capacity of 10,000 MT Nitrogen. FACT became a Kerala State Public Sector Enterprise on 15th August 1960 and 21st November 1962, the Government of India became the major shareholder. The company's main business is manufacture and marketing of (a) Fertilizers (b) Caprolactum and Engineering Consultancy and Fabrication of Equipment

GROWTH & EXAPANSION OF THE COMPANY

The company started commercial production in 1947 with the installation of Ammonium Sulphate plant with productive capacity of 50000ton. Later other plants were established for super phosphate with 44000ton productive capacity & sulphuric
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plant with productive capacity of 75ton/day was established. FACT was 1st used chlorine as the byproduct for production of Hydrochloric acid & Ammonium Chloride In 1950s were the 1st stage of expansion with 3crore outlay for installation of plant to produce Phospheric acid, Ammonium Phosphate etc. FACT became public sector enterprise in 1960. In second stage of expansion was in the year 1962. The outlay was 2crores & there were replacement of firewood gasification & electrolytic process by toxic oil FACT Engineering and Design Organization 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. FEDO has since then diversified into Chemicals, Petrochemicals, Hydrometallurgy,

Pharmaceutical and other areas. FEDO offers services from project identification and evaluation stage to plant design, procurement, project management, site supervision and commissioning of new plants as well as revamping and modernization of old plants. The third stage was completed in 1965 with setting up of a new Ammonium Sulphate plant. FACT Engineering Works was established on 13th April 1966 as a unit to fabricate and install equipments for fertilizer plants. Over the years FEW developed capabilities in the fabrication of pressure vessels and heat exchangers. FEW has also undertaken laying of cross country piping and fabrication and installation of large penstocks of hydel projects. The Cochin Division of FACT, the 2nd production Unit was set up at Ambalamedu and the 1st phase was commissioned in 1973. The 2nd phase of FACT Cochin Division was commissioned in 1976

DIVERSIFICATION
FACT then grown & diversified into a multi-division /multi-function organisation with Basic interest in manufacturing & marketing of fertilizers & petrochemicals, Engineering, Consultancy & Design & Fabrication & erection of industrial equipments.

OWNERSHIP PATTERN & MANAGEMENT OF THE COMPANY

FACT comes under 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 1960s the Government of India became the major shareholder. The company is managed by a board of directors. The chairman of the Board of Directors is the Managing Director. The company has a full time finance director, a technical director and marketing director. .There are also six part time directors on the board, nominees of the central and state governments.

VISION & MISSION OF THE COMPANY VISION

To be a market leader in fertilizer, petrochemical and a significant player in all other business including engineering /technical service providing maximum customer satisfaction,& reasonable return to shareholders adhering to business ethics & professionalism & adequate concern for community & environment

MISSION
To function as a dependable & globally competitive producer of fertilizer & other products & to develop self reliance in the field of engineering, & technology especially in the field of fertilizers, chemicals, petrochemical, & oil & gas industry

OBJECTIVE OF THE COMPANY

 To produce & market fertilisers & Caprolactum & other products efficiently and economically, besides achieving reasonable & consistent growth. To effectively manage the resources & assets of the company to ensure a reasonable return on investment. To focus on cost reduction & technology up gradation of the company To become competitive in its line of business.
To constantly innovate & develop new products & services to satisfy customer

requirements.

LEGAL FRAMEWORK OF THE COMPANY

The company is a central Govt company . It registered under Companies act 1956. FACT complies with all laws and statutes which govern industries in general Factories Act, 1948 Sales tax Act, 1959 Industrial Disputes Act, 1947 Excise Act, 1944 Employee Staff welfare Act, 1948 Workmen Compensation Act, 1923 Trade Unions Act, 1926 The payment of wages Act, 1936 Standing Orders Act, 1946 Payment of Gratuity Act, 1972

CORPORATE SOCIAL RESPONSIBILITY

FACT is committed to operate in an economically, socially & environmentally sustainable manner, while recognizing the interest of its stake holders. The various

activities do as parts of CSR are 1.Dealer network They has an important role in marketing of fertilizer over the entire country. They also provides important knowledge on use of fertilisers & helps to improve Agricultural practices.
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2.Community health centre The community in which factories at Udyogamandal & Cochin division are located Are given free medical consultation services on 2 days in a month. This has benefitted the people at large. 3.General health insurance FACT has joined hands with Government of Kerala to introduce a general health insurance for about 3000 families residing in Eloor Grama Panchayath. 4.Drinking water supply To meet the scarcity of water in Eloor Grama Panchayath, FACT is providing about 1500 M3 water per day to more than 500 residential users of the Eloor Grama Panchayath. 5.Fire and Emergency Services The well equipped fire services established in FACT provide emergency services not only to the surrounding areas but also to Ernakulam district as well. 6.Training facilities In addition to Employees and Apprentices Training, FACT Training Centre has of late emerged as a Skill Development Academy offering the following courses, utilizing its resources for the benefit of the public at large: One year Diploma in Fire & Safety Engineering for ITI/Plus 2 passed students. 3.months Certificate course in Heavy Equipment Operation. 3.months Certificate course in Instrumentation & Maintenance. 7.Community Awareness There are several community awareness programmes provides on the areas of safety, pollution control measure in plants, onsite emergency plan through public relation department. 8.Hospitals

There are two full-fledged hospitals, one each at Udyogamandal complex & Ambalamedu respectively. These hospitals provide both inpatient and\outpatient

treatment to the company employees who are members of the contributory health scheme. The hospitals also extend their service to those who are not members

DIVISIONS OF COMPANY
1. UDYOGAMANDAL DIVISION

FACTs one of oldest plant which started production of Ammonium sulphate using firewood gasification process in 1947. Later it has gone through expansion process with modern technology. Today it has an installed capacity of 76050tonnes of N & 29700 tones of P205 . Apart from fertilizers like Ammonium Sulphate & Ammonium Phosphate sulphate, it produces chemicals as intermediate products like sulphuric acid, phosphoric acid, Sulphur dioxide etc. Ammonium Sulphate liquor obtained as a byproduct from the Caprolactum

plant is converted as a useful fertilizer product in a new Ammonium sulphate plant 2,25000 TPA capacity put up in October1990 , at a cost of Rs35crores. As a replacement to the existing high energy consuming old Ammonia plants at Udyogamandal ,a new 900 TPD capacity Ammonia plant at a cost of Rs 642crores was put up in March1998. FACT Udyogamandal plants received ISO 14001 certification in March 2004 conforming to the Environmental Management System standard
2. PETROCHEMICAL DIVISION

This division of FACT manufactures Caprolactum, the raw material for Nylon-6, which is extensively used for the production of tyre -cord, textile filament yarn & engineering plastics. FACT, one of the only two manufacturers of this product in India has the capacity to produce 50000 MT of Caprolactum in a year. FACTs Caprolactum, exported to

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various countries including the USA, not only earns precious foreign exchange but also appreciation on account of its excellent quality. The Caprolactum plant also produces 225000 MT of Ammonium Sulphate/year as coproduct & small quantities of Soda Ash & Nitric Acid, as by-product The plants has been certified ISO 9001: 2002 since April 1996 by RWTUVGermany & ISO-14001 since December 1999 by DNV, Netherlands
3. COCHIN DIVISION

FACT Cochin Division was set up in the 1970's at Ambalamedu, 30 km from Udyogamandal and adjacent to the Cochin Refineries. Phase-I of the division saw the setting up of an integrated Ammonia urea complex utilizing Indian Engineering skills. A large scale complex fertilizer plant of 485,000 TPA was set up as phase-II. Sulphuric acid and Phosphoric acid plant of economy scale were also set up
4. FACT ENGINEERING & DESIGN ORGANISATION

For utilizing the considerable indigenous plant building expertise accumulated by FACT in its process of nurturing the nascent chemical fertilizer industry, FACT Engineering & Design Organisation was established. It entered into many industrial Sectors like petrochemicals, refining, pharmaceuticals, hydrometallurgy etc as well as Petroleum storage, environmental engineering, offsite facilities etc. The major work of FEDO is project execution on consultancy and turnkey basis, design and engineering, hardware procurement and construction with practiced ease .FEDO is an ISO 9001certified project consultancy organisation FEDOs multi disciplinary project functions are carried out to ensure world class standards in process economics & plant performance through various departments. The overall project management & construction management are the responsibilities of Project & construction groups.

5.FACT ENGINEERING WORKS

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FEW, the Fabrication and Engineering Division of FACT was established in the year 1966.It is one of the leading contracting firms in the country offering services through the manufacturing wing with modern fabrication and testing facilities. Present range of equipments fabricated by FEW includes items like Heat Exchangers in Carbon Steel, Alloy Steel, Penstock Pipes, and Towers etc. Since 2006 FEW has also been producing ship building components. Project wing of FEW undertakes design engineering, fabrication and erection of plant piping etc. It can also handle the design, fabrication & erection of large size Storage Tanks including Ammonia Storage Tanks, Vessels etc. The quality system of Manufacturing Wing as well as Project Wing has been certified to ISO 9001 since 1998.
6.MARKETING DIVISION

When FACT became the first large scale producer of chemical fertilizer in India the full responsibility for selling the fertilizer concept to the tradition bound farmers also rested on the company. The farmers were reluctant to try the new product. Then FACT understood the need to persuade the farmers to buy the product with necessary instructions. Then FACT under took the responsibilities of fertiliser promotion programme with a well structured dealer network. They also used multi media publicity campaign. like the press , cinema, the outdoor and other forms of printed word, also under took demonstration , farming on farmers own plots, where the farmers in neighborhood could come and watch for them-selves the activities and the transformation taking place right before their eyes. THE FERTILISER FESTIVAL was a novel idea introduced by FACT in fertilizer promotion. This was a real media in which there were opportunities for farmer education programmes, entertainments, recreation and exchange of ideas.. THE VILLAGE ADOPTION SCHEME was another new concept developed by FACT for the first time in the country. A whole village was adopted and a scheme to
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improve agricultural productivity and the overall socio- economic status of the village was launched. As a result. FACT has so far adopted more than 100 villages in the states of Kerala, Tamil Nadu, Karnataka and Andhra Pradesh. FACT AGRICULTURAL STUDY CENTRE (FACT Krishi Vigyan Kendra) was a new experiment in agricultural extension work. These Kendras operated in villages on a rotating basis and trained farmers in modern and scientific methods of cultivation. Regular fortnightly classes were arranged by experts in the concerned fields for a period of six months. FACT marketing network is spread over the states of Kerala, Tamil Nadu, Pondicherry, Karnataka & Andhra Pradesh and has around 100 field storage points and 7000 retail selling points in these states. The total sale of fertilisers during 20092010 was 10.45 Lakh Mts.

PRODUCTS & PRODUCT MIX

FACTs main products are

FINISHED PRODUCTS
1.STRAIGHT FERTILIZERS

Ammonium Sulphate Ultraphose Urea

2. COMPLEX FERTILIZERS

FACTOMFOS 20-20-0-13 (AMMONIUM PHOSPHATE SULPHATE).

3. FACT MIX

FACT prepares on a large scale all the standard NPK mixtures under the brand name FACTMIX for different crops for Kerala as stipulated by the department of Agriculture . Various FACT mixtures are

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 A NPK Mixture-

FACT prepares as a very large scale all the standard mixture for different crops all are stipulated. The company produces special tailor made fertilizer mixtures of any

required grade for the plantation crops like coffee, rubber and so forth. Vegetable Mixture Rose mix

Garden Mixture
4 BIO FERTILIZERS

Three types of bio fertilizers namely Azospirillum, Phosphobacter & Rhyzobium are produced & marketed as BIO FACT
5.CHEMICALS

Anhydrous Ammonia Nitric acid and Soda ash: Sulphuric acid Caprolactum FINISHED PRODUCTS
Ammonium Sulphate - Udyogamandal Division Caprolactum - Petrochemical Division Biofertilisers - Research & Development Division Ammonium Phosphate / Complex fertilizers / Factamfos - Udyogamandal Division & Cochin Division

EXPORTED PRODUCTS
Ammonium Sulphate - Udyogamandal Division Caprolactum - Petrochemical Division

BY PRODUCTS
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 Nitric Acid & Soda Ash - Petrochemical Division Carbon Dioxide Gas - Udyogamandal
Gypsum - Udyogamandal Division & Cochin Division

INTERMEDIARY PRODUCTS
Ammonia - Udyogamandal & Cochin Division Sulphuric Acid - Udyogamandal & Cochin Division SO2 Gas - Udyogamandal Division
Phosphoric Acid - Udyogamandal & Cochin Division

MARKETS
FACT distribute its fertilizers in 4 states of South India viz. Tamil Nadu, Kerala, Andhra Pradesh and Karnataka Kerala- Allepey, Palakkad, Kottayam, Kannur Tamil Nadu-Coimbatore, Trichy, Madurai,Vellore, Salem Karnataka -Mangalore, Bangalore, Belgaum,Hospet A.P-Hyderabad ,Vijayawada, Kakinada, Nellore

TECHNOLOGY
AMMONIA COMPLEX
Ammonia Plant technology is HALDOR TOPSE , Denmark
Captive Power Plant technology is Boiler-BHPV and Turbine-BHEL, India

SULPHURIC ACID PLANT

DCDA technology is SIMON CARVES,UK and FEDO, India SO2 ACID Technology is FEDO, India

PHOSPHERIC ACID PLANT

DORR OLIVER , USA

AMMONIA PHOSPHATE PLANT

APP 3rd stage Technology is DORR OLIVER,USA APP 4th stage Technology is FEDO,India
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AMMONIUM PLANT
Technology is TSK, Japan

AWARDS WON-ISO CERTIFICATION

AWARDS
ICMA Award

The R & D division has developed a process for the utilization of by-product gypsum for the manufacture of Ammonium Sulphate a remarkable breakthrough in chemical technology. FACT won the ICMA award of 1964,on 16th March for this singular achievement. Performance Excellence Award 2005

FACT Training Centre got a Performance Excellence Award-2005 in recognition of excellent performance in imparting training and allied activities with limited facilities. Pollution Control Award

FACT got a Pollution Control Award from Kerala State Pollution Control Board for acquiring first place in pollution control activities among large scale industries.

ISO CERTIFICATION
FACTs every divisions are ISO certified.

Udyogamandal Division

ISO 14001 certification for environment management system

Cochin Division

ISO 14001 certification for Environment management system ISO 9002 certification for quality management system

FEDO

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In May 1996, FEDO became the first engineering consultancy firm in India to be awarded ISO 9001 certification for the impressive quality standards of our systems relating to the various aspects of engineering and execution of projects. The certification comes from Det Norske Vaeritas Quality Assurance Ltd; reputed quality auditing firm from the UK

FACT Petrochemical Division

In February 1996, FACT Petrochemical Division was certified to ISO 9002(1994) and ISO 14401 (1996)..

FACT Engineering Works

FEW is ISO 9002 certified

COMPETITORS
a. b. Urea) , c. d. e. f. NFL-Nagarjuna Fertilizer LTD (Product-Urea) MFL Mangalore Fertilizer LTD. (Products-Urea ,Complex Fertilizers) RCF Rastria Chemicals Fertilizers LTD. (IFFCO-Indian Farmers Fertilizers Co-operative SPIC Southern Petrol Industrial Chemicals MFL Madras Fertilizer LTD. (Products-NPK 17:17:17 and variants Vijay

FUTURE PLANS SHORT TERM PLANS

1. Mechanization of bagging operation at Cochin Division 2. Marketing of organic Fertilizers
3. Complex fertilizer

LONG TERM PLANS

Switch over to LNG
New Urea Plant

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ORGANIZATIONAL STRUCTURE
CMD

DIR MARKETING

DIR FINANCE

DIR TECH

CVO

GM MARKETING

GM HR

GM (UC)

GM (CD)

GM F&F

GM MATERIALS

JGM (PD)

CM FEDO

CM FEW CM PURCHASE

CM SALES

CM DISTRUBUTION

CM AGRONOMY

CM PRODUCTION

CM MAINTENANCE

MGR STORES

MGR QUALITY

MGR SAFETY

MGR R&D

MGR TRAFFIC

MGR STORE

KL

TN

AP

KA COMPANY SECRETARIAT CSP CME

PE

PE

PE

TRAFFIC

AMMONIUM SULPHATE

AMMONIUM PHOSPHATE

PHOSPHORIC ACID

SULPHURIC ACID

AMMONIA

Abbreviations used are CMD-Chairman & Managing director C.V.O- Chief Vigilance Officer GM - General Manager
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HR- Human Resource UC- Udyogamandal complex CD- cochin division F&F- Finance & funds CM- Chief manager CME- Chief Mechanical Engineer

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4.1HUMAN RESOURCE DEPARTMENT

INTRODUCTION
Human resource is the important asset of every organisation. Proper human resource will help to utilise the other resources in better way help to achieve high rate of growth &development. Management of human resource is a challenging job that every organisation needs to carry out. FACTS human resources help to achieve the development of the company. HR department of FACT does all the things which are necessary for the betterment of the employees and for the growth of the organization

OBJECTIVES OF HR DEPARTMENT
Maintain the optimum manpower required to sustain the growth of Organization Motivate & manage human resource and train them to ensure their personal and organizational development To provide attractive incentives, rewards and other benefits to ensure retention of competent employees. Create opportunities to provide facilities and necessary motivation to achieve as well as organization goal Maintain high morale, encourage value system and create environment of trust & mutuality of interests

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STRUCTURE OF HUMAN RESOURCES DEPARTMENT

CMD (F.A.C.T)

GM (HR)

CM (WELFARE)

CM (IR)

CM (EST)

CM (TRG)

C.M(In d.Eng)

MGR (LEGAL)

Mgr (PR)

Abbreviations used are C.M.D- Chairman & Managing Director GM- General Manager
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 .IR- Industrial Relation CM- Chief Manager EST- Establishment DGM- Direct General Manager TRG-Training

FUNCTIONS
1. Organizational human resource planning & development The identification of required number & type of personnel for the organisation is determined by the Industrial engineering department 2. Recruitment & selectionFACT recruits the employees through careful process. They uses different sources for recruiting employees. The Establishment section of FACT deals with the recruitment & selection of employees. 3. Wage & Salary administrationThe wage & salary scale is different between managerial & non managerial employees & workers of the company. Proper determination of them is determined by the HR department. 4. Employee records maintaining Maintaining records like salary statement, attendance register etc is also done by HR department 5. Performance appraisal For success of the organisation, good performance of workers is essential. Proper performance appraisal help to improve the performance of workers in the organisation. Proper advice, training measures etc can also be taken. FACT does this performance appraisal in a systematic way & in a careful manner. 6. .Welfare ProgrammeFor good performance of workers, some welfare measures like good working conditions, sufficient protectionary measures etc are needed. These are also done by H.R. department. 7. Job evaluation
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8. Handling employee grievances Sometimes, there will be grievance occur between management & workers or with trade unions. The company handle these grievances through careful process.

HR DPARTMENT PROCESS
FACTs H.R department works through three blocks. This is one special feature of FACT. The three blocks are .Establishment .Industrial relation .Welfare

ESTABLISHMENT SECTION
The Establishment section plays a crucial role in Human Resource Department. It does some important functions. They are Recruitment & selection Transfer, rotation and placement of employees in consultation with divisional heads Performance appraisal Wage & salary administration of employees Retrenchment

RECRUITMENT POLICY
As per prescribed recruitment policy the recruitment policy is done as per prescribed recruitment specification with proper authority with proper authority appointment by the board of directors Important sources of recruitment of the company are the following. Confirmed employees wit in the division or company Employees on deputation from government
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 By transfer from public sector undertakings. Employment exchange as per provisions of employment exchange act. Casual labours who were initially taken after employment exchange Apprentices who completed training in FACT Recruitment and Promotion Policy in respect of the managerial personnel is laid down as administrative orders issued by management.

RECRUITMENT OF MANAGERIAL PERSONNEL

The head office handles the recruitment to managerial positions. The process followed are Identification of vacancies

When employees retire, resign or termination or for meeting expansion purpose, Vacancies arise Notification of vacancies to employment exchange

In second stage, identified vacancies will be notified in employment exchanges. The notification are sent either to the central employment exchange or divisional employment exchanges depending on the pay scale. Notification be made employment exchange Ernakulum and four weeks in case of central employment exchange. Advertisement

Later the recruitment request go for approval by CMD. If CMD approves the requests the personnel department after checking the roster, prepares draft & these advertisement approved by Head of Personnel Department. Vacancies to be filled by external recruitment will be notified in approved newspaper on All India Basis. If any SC/ST employment, notification is there any or in advertisement if any, clear details regarding the number of posts and relaxation gives if any to candidate in respect of job requirements. Last date for receipt of applicants against advertisement

The candidates are given a minimum period of 2 weeks from date of appearance of last advertisement. The advertisements are released by public relations department.
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Screening of applications

The received applications go through screening by personnel department according to requirement specified in advertisement. Then a list of candidates who meet the requirements will be prepared which has to be approved by appointing authority. Interview For conducting interview of candidates an interview committee is more constituted by CMD/head of personnel is there. This committee includes those persons decided by management as well as SC/ST officers as outside expert, experts in this area from within the company & representative from PD. Antecedent Verification

Antecedents of all candidates in the select list are to be verified. Attestation forms are to be sent to the authorities of all respective districts where the candidates has resided for more than one year during the preceding % years will have to be covered in local verification. Appointments All appointments are made after a medical examination conducted by the company doctor & the resultant satisfactory report given by him Induction programme

The Head Office Personnel Department arranges an induction programme for the new recruitees Probation

The new candidates will be placed for probation for a period of 6 months. During the probation period, their performance will be assessed & on the basis of that performance either they will be placed or will be terminated from the post if found unsatisfactory.

INDUSTRIAL RELATIONS
The relationship between the management & employees is referred as industrial relations. Sometimes it is called employers employee relations or personnel relations.
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It embraces the relationship between management and trade unions. In fact the term industrial relations is used to all types of relationships between all parties concerned with industrial enterprises. FACT has industrial relations department which handles & resolves IR issues. They deals with manpower studies, grievance handling, settlement of disputes etc.

TRADE UNIONS
The trade unions functioned at Udyogamandal division are FACT employees association .FACT workers union FACT employers congress ( INTUC) .FACT employees organization

WELFARE
Welfare of employees has a special significance in our country. For a healthy working envirornment & good industrial relations, welfare measures are provided by the company. FACT has always maintained very healthy welfare measures. Welfare measures are based on the Factories Act, 1948 and Kerala Factories rule. These 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. measures are Employees state insurance Payment of gratuity Family relief fund provided Family pension scheme of company Transport subsidy Uniform & footwear Leave travel concession Childrens education allowance Retirement benefit fund EX-gratia payment for accident deaths Contributory health scheme
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12. 13. 14. 15. 16.

Company accommodation Fact employees housing cooperative society Incentives for employees acquiring higher qualification while service FACT merit award FACT service award

INDUSTRIAL ENGINEERING
The effective utilization of the manpower resources and restructure it for the benefit of the organization the industrial engineering section is there. Through its well structured functioning it ensures effective utilisation of manpower resources & leads the organisation to development. The major functions are Manpower planning comprises of manpower audit & then forecast future requirements of the company. Act as the Custodian of manpower inventory Work study& removal of system bottlenecks. Maintenance scheduling Analysis of employee problems. Work environment policy

ADMINISTRATION WING
For handling the general administration of the company the administration section works in the company. The section handles the administration matters effectively. Managerial affairs of the company effectively are an important function of this section. It is headed by DGM of company. The major functions of this section are Checking out each departments performance They handles the Office and admin work of HR department Act as an intermediary between different sections. Consolidating the reports of different HR sections

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LEGAL SECTION
For managing the legal matters legal section is there. The major duty of this section is to handle cases within and outside the organization in which the company is involved.

SOME MORE INFORMATION

PERFORMANCE APPRAISAL For successful functioning of an organisation good performance of employees is essential. Continuous evaluation of performance of employees & appropriate suggestion at the correct time will help to improve their performance. For this performance appraisal is necessary. FACT has a systematic performance appraisal system which had started in the year 1962. Later, this system has revised further more . Features of FACTs performance appraisal system For managerial employees, self appraisal system adopts. Rating is given according to some scales like job knowledge, quality of work etc. Assessment by the Assessment Committee On the basis of assessment Grading is given In formally, provision for appeal to employees is given Reporting and receiving officers specified for each level of appraisal Feedback mechanism is there GRIEVANCE HANDLING In every organisation , there will be difference of opinions between the employees & the management or among the employees themselves. It will lead to some grievances. If not handle carefully, it will affect the functioning of organisation FACT has a systematic mechanism to handle the grievances. For managerial & non managerial employees different mechanism adopts.

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MANAGERIAL The issues lead to grievances in this level relates to work, work place, transfer, promotion, salary issues etc. The officer concerned will bring the grievance orally to the next immediate superior officer. If the issue is not resolved at this stage, officer submit a written petition to CMD. Normally all grievances arise out of decision taken at the division level shall be processed within the time

NON-MANAGERIAL
The major issues related to this are matters relating to wage payment, complaints against colleagues, overtime, leave etc. According to the procedure, The trade union will present the grievances. A first stage the employee in person will take up his grievance with foreman or Asst Manager the answer will be given within 48 hours. If it is not satisfactory to the employee, either he in person or accompanied by his dept will present his grievance to head of dept for solution. If it is also not satisfactory to the employee he can request to forward the grievance to grievance committee consisting of representative of management, unions & dept where the solution would be given.

WORKERS PARTICIPATION IN MANAGEMENT

As a pioneer in fertilizer industrial sector FACT tries to promote workers by giving chances to them to participate in the management. When FACT started its functioning with one division in 1959, the company has an ideaof having the active association of employees in various aspects of productive operations. The aim was to promote the employee to effectively work. Later FACT adopted certain measures to ensure workers participation in management. Keeping in mind this idea, joint council , shop council and joint labor management action groups were formed. Thus the employees can contribute to the productive operations & thus to the growth & development of the company.

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MANPOWER OF FACT
In the initial years the company had more than 9000 employees. But from 1998 onwards company adopted cost reduction measures .And as a part of that the

company introduced Voluntary Retirement Scheme for employees. Then the number of employees were reduced Year by year. In 2011 the company has a manpower of 3301 employees. WORKING TIME The working time of administration section & workers are different. The administration section works from 8AM to 4PM. The workers work on shift basis. There are 3shifts. 1.8Am-4PM 2. 4PM-12PM 3. 12PM- 8Am

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4.2FINANCE DEPARTMENT
INTRODUCTION
Men, material, machinery & money are the important factors required for an organization in these, money or finance has also its own importance. For successful functioning of an organization, adequate finance is necessary. It is the lifeblood of an organization Managing finance is an important function of every organization. This dept looks after the books of accounts and monitor the cost ,the profitability of the divisions and ensures the cash flow on sales, they also keep credit under control etc.

OBJECTIVES
Manage & account for the financial resource of the Organization Forecast the requirement of financial in the future and plan accordingly and to check for deviation. Report the financial performance of the company to Management, stakeholders & and to comply with the Govt. rules and regulations

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ORGANISATION STRUCTURE OF FINANCE DEPARTMENT

DIRECTOR FINANCE

GM( CORPORATE FINANCE) DGM( IA&FINANCE)

CM (Bills & Mat)

CM (SALES)

CM(Costing, MIS,Budget)

CM ( Gen A/C)

Mgr (IA)

Mgr(cash,Bank,& payroll),

Mgr(Tax&Duties)

FUNCTIONS
1. 2. 3. 4. 5. 6. 7. 8. Maintenance of general accounts. Billing Preparation of journal, ledger and trial balance. Financial resources and material accounting. Cost accounting. Auditing. Payroll General accounts

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ACCOUNTING PROCEDURE
FACT is a central Govt enterprise. As a multi unit organisation there is a specific accounting procedure in this company. There is a uniform classification in the financial accounts to be followed by all the units. To record all the transactions of units, a nine digit code number is used. To indicate the general account section, first 4 digits are used. Last five digits indicate the sub ledger accounts.

PROCESS OF FINANCE DEPARTMENT

In finance department of FACT there are five sections to carry out the accounting process. They work effectively for the successful accomplishment of the process. The five sections are Bills & Materials section Sales section Costing, MIS, Budget Cash, bank & Payroll section Tax & duties section

BILLS & MATERIALS

.Important functions of this section includes the following Sales of tender form Remittance of security deposit Receipt to certified bill in the specified format Issue of material to the extractors Remittance of EMD

STORES ACCOUNTING
The stores accounting is also an important part of accounting process. They need to handle the receipt of store, issue, return of store etc. This section does this it in a careful manner.

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Functions of this section are They handles the receipts of stores They also deals with issue of stores Returns of stores Value adjustments Reconciliation with control accounts Unconsumed materials lying at site at the close of financial year

SALES ACCOUNTING
The sales of the product & distribution is necessary to succeed in the market. Therefore proper maintenance of accounts regarding sales & distribution is an important part in accounting process. Main functions are Accountability for selling and distribution of products & byproducts Transfer of information from depots to HO Recording the transaction Compilation of reports

COSTING, MIS & BUDGETING

This section handles the ascertainment of cost of production, provides necessary & detailed information, helping to prepare a budget, forecasting the performance and finally making a plan.

COST ACCOUNTING
a)IDENTIFICATION OF COST CENTRE

In production divisions cost records are maintained on the basis of cost centers. It is a location or an equipment or a group of both together for which cost can be

ascertained separately. An expenditure which is incurred exclusively for a cost centre and can be identified as relating to a specific cost centre will be allocation or identification to a cost centre is not possible, such expenditure will be apportioned to different cost centres on an accepted or predetermined basis.
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b)COST CENTRE AT UDYOGAMANDAL DIVISION

DM water, Steam, CPP, Process water, Ammonia, Sulphuric Acid, So2/Oleum, Phosphoric acid, Pollution Control, Ammonium Sulphate, Ammonium Phosphate
c)COST OF PRODUCTION

In production divisions the process cost system is followed for finding out the cost of production of various products and services. In two ways, cost sheet is prepared. The items in the cost sheet are compiled on the basis of elements of the products cost sheet all the products are prepared both in process wise and elements wise

MIS (MANAGEMENT INFORMATION SYSTEM)

The running of every business organisation needs very much informations. Providing such informations is an important part in accounting process. The main aim is to provide the management with vital facts which affects the efficient running of the business for decision making on planning, organizing and controlling the major activities of the organization and initiating suitable action. It mainly consists of Divisional Reports- Two monthly reports for each division - one for the finance department and another for the GMs office P & L Account-Statement and its analysis Information about production performance of the division Inventory position details Cost of production-Actual and budget for the month Specific information important for the management-Major projects, man-hour utilisation etc.

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BUDGETING
A budget is a financial quantitative statement of the policy to be pursued during a period of for purpose of attaining a specific objective. It is a financial statement of estimated receipts & expenditure for a year. Two types of budget are prepared-Revenue and Capital budget Two types of estimates are prepared also- Budget estimate and revised estimate

Revenue budget
Control of revenue expenditure is achieved through the revenue budget for the next financial year and revisions of revenue budget for the current year are taken up together. It also shows detailed production targets and norms for consumption of materials for remaining portion of the current year and also for the next financial year are prepared by the head of Divisions

Capital budget
The capital budget shows all the items of capital expenditure to be undertaken during the budget period. Generally, expenditure on acquisition of new asset such as land, building, plant & machinery, furniture ,service equipments etc which have reasonable life, expansion of existing facilities, modification & improvements etc. Both the budget is usually prepared during September-October every year. Moreover, two types of estimates are prepared for both the budget that is the Revised Estimate (RE) and Budgeted Estimate (BE) Revised budget for the current year RE is the and BE is the budget for the next year. Budget revision While preparing the next years revenue budget, the revenue budget for the current year is revised, based on the actuals from April to September and the anticipated trend for the remaining period.
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Monthly report On closing of the accounts of the months a monthly P & L account is prepared for each Division and the same is send it to the Division Head, FD and CMD. This report would give a comparison of the actuals for every month against budgeted performance

ACCOUNTING SECTIONS 1.THE CASH, BANK AND PAYROLL SECTION

They handles the functions regarding cash & bank transactions of the company in a systematic manner Function includes the following Receipt of cash, cheques, bank drafts, and postal money orders Payment of cash, cheques, bank drafts, and letters of authority Security arrangement of cash handling Safe custody of valuable documents Cash interests calculation

Any other duties assigned by authorized officer

PAYROLL SECTION It includes the following 1. Preparation and disbursement of salaries and wages to managerial and non managerial employees

2. They handles .processing of various personal payments advances etc 3. They also keep books of accounts for the above transactions 4. Effects various recoveries to through pay role and the same to concern agencies
2.TAX & DUTIES SECTION

It is concerned with calculation & payment of various taxes and duties to the Government.

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Payments includes Personal payments Reimbursement of medical expenses Family pension Childrens educational assistance Gratuity Payments It is paid in accordance with provisions of Gratuity act 1977 for all employees. According to this act 15 days salary for every completed year of service, subject to a maximum of 3.5lakhs will paid as gratuity except in case of death of an employee. Salary includes basic pay, personal pay, protected personal pay etc.

ADDITIONAL INFORMATION INSURANCE SCHEMES

Every business organisation needs to face several risks. There may be possibility of fire, accident, theft etc. To protect against this risks , various insurance schemes are there in this company. The insurance schemes includes fire insurance , fidelity insurance and cash in transit/cash at safe/pay role insurance, Loss on profit insurance Personal accident insurance Storage cum erection insurance etc

COMPILATION OF ANNUAL ACCOUNTS

1.P&L account 2.Balance sheet Published accounts of the company includes 1. P&L account 2. P&L appropriation account 3. Balance sheet 4. Auditor report 5. Board of director report 6. Information required as per stock exchange requirements
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BANKS SUPPORTINGFACT State bank of India State bank of Travancore State bank of Hyderabad Dena bank Canara bank Bank of Baroda Bank of India AUDITING
Various types of auditing conducted at FACT are Statutory audit, Government audit, Cost audit, Income tax audit, Sales tax audit and Internal audit. Internal Audit Section Some of the main functions are 1. Operational/ systems/ management audit 2. Proprietary audit and audit of sanctions 3. Routine audit 4. Surprise verification of physical stocks 5. Special audits and studies

SOURCES OF FUNDS
1. Shareholders funds Share capital Reserves & surplus 2. Loan funds Secured loans Unsecured loans Financial performance of company during 2009-2010

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During the financial year 2009-2010 the companys performance was not so good. The company suffered a net loss of rupees 103.84crores. The major reason for this was decrease in the subsidies on fertilizers. The total income during the year was rupees 215953.55lakhs. The company had a sales of 108966.01lakh rupees during the year. The total expenditure was Rupees226323.89lakhs

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4.3MATERIALS DEPARTMENT
INTRODUCTION
The production of products requires good quality raw materials. The materials department handles all important functions regarding materials. They handles the proper availability of raw materials at right time, ensure its quality etc. They also handles the transportation of raw materials to the production department etc

STRUCTURE OF MATERIALS DEPARTMENT

GM(MATERIAL)

CM PURCHASE RM

DY.CM RAW
MATERIAL Mgr(STORES) Mgr (Traffic )

Mgr E.S.S

Mgr F.F.T.S

OBJECTIVES OF MATERIALS DEPARTMENT

To ensure the availability of materials at right time & its quality Control and account for the materials in the organization
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FUNCTIONS
Handles the Importing raw materials under the approval of safe purchase committee constituted by Board Of Directors Deals with the Procurement of machineries, different spares & equipments Also handles the Transportation of raw materials ,products and byproducts They do the Inspection of materials

SUB DEPARTMENTS OF MATERIALS DEPARTMENT

1. Purchase 2. Stores 3. Traffic(logistics) 1.PURCHASE DEPARTMENT The purchase department handles the purchase of raw materials, equipment & spares.It has 2 sub sections A RAW MATERIALS This section deals with the raw materials only. They do the Purchase of various raw materials for production. The different raw materials includes Sulphur, Ammonia, Rock Phosphate, Naphtha, furnace oil etc. OBJECIVES 1. Purchase of raw materials for production from India & abroad 2. Make available adequate quantity of materials at right time 3. Follow a fair procedure in all these.
FUNCTIONS

1. Importing raw materials under the approval of safe purchase committee constituted by the Board of Directors 2. Procurement of Materials needed for production 3. Determination of quantity of materials required 4. Issue of Purchase order
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5. Pre & post dispatch Inspections B EQUIPMENTS & SPARES

For production, not only raw materials, but also some equipments & spares are necessary. This section deals with it. They handles purchase of heavy machinery, machine spares and package items including design, supply, commissioning etc. Functions 1. Importing materials under the approval of Safe Purchase Committee constituted by the Board of Directors 2. Determination of actual requirement by checking with stores, technical department, management and giving specifications 3. Vendor development 4. Bid evaluation & Financial Concurrences 5. Entering into contracts 6. .Issue of purchase order for equipment & spares 7. Inspections of materials and stores 8. Insurance payment

PURCHASE PROCEDURE
FOR RAW MATERIALS This is explained in 3 stages Stage1 When requirement for raw material arises, production unit raises purchase requisition to materials department ,procurement process carries out through bidding. Invitation for bids is given only to prequalified vendors through advertising. They are given 30 days time period for submission of bid Stage2

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In this stage, the received bids are opened in the presence of bidders, all concerned officers etc. All necessary details are read out. The technical part is forwarded to the indenting production unit for evaluation. The suitable bids are approved for purchase Stage3 Purchase recommendation is forwarded to the finance department for purchase above 25000. Later, the proposal is forwarded to the sanctioning authority through purchase order after financial concurrence. Contracts are made with the vendor.. The purchase department has to ensure that the goods are of the prescribed quality on delivery of the goods. If not the goods has to be rejected FEDO & FEW, Transportation & Stores (FFTS) Section The Functions of the section are: 1. Project related procurement for FEDO & FEW 2. In-house procurement for FEDO & FEW 3. Storage of Raw materials 4. Raw material transportation & Technical assistance for handling
2.STORES DEPARTMENT

OBJECTIVES 1. Collection and receiving of materials purchased 2. Issuing materials to user departments 3. Inventory Management & Control 4. Disposal of surplus and obsolete materials
FUNCTIONS

Receiving Holding Inventory Control Issuing Disposal

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PROCESS FLOW IN STORES DEPARTMENT

Holding Receiving Inspecting Inventory Management

Disposal

Issue

PROCEDURE FOLLOWED When a material is received, the stores officer inspects the items and is approved by the stores manger for holding in the stores after verification. The store in charge allocates materials to the specified shelf and records the data in the Bin card. The

store officer updates the data in the MIS. And for issue of materials, the requirements forwarded by the departments is verified and approved by the manager for dispatch. The issue is and recorded in the MIS. However, for disposal the list of items to be disposed is forwarded to the management by the stores. Approved items are disposed or sold for scrap value and recorded in the MIS. Store is responsible for all activities for ensuring inventory control, commissioning of codes and disposal of scrap. Materials move into store only after inspection conducted by store employees. Technical department help is sort wherever required. Obsolete items are disposed.

STOCK VERIFICATION
Stock verification is done by physical stock verification Team (PSVT) are attached to finance department. A and B items are verified once in a year and C items once in 2 years. For those which are not covered under ABC analysis XYZ is taken and frequency of verification is once in a year for X& Y Items and once in 2 years for Z items. Along with this officer, stockholding in-charge verifies stock daily and submits the report to PSVT and when they come for inspection, the deviations in the report are clarified.
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INVENTORY ANALYSIS DONE IN FACT

A-B-C Analysis ABC analysis is prepared by the computer centre based on the value limit sof: A Items > Rs 50,000, B Items < Rs 50,000 and > 5,000 and C Items <Rs 5,000. Computer centre prepares the list on basis of annual consumption. Accordingly, items A are given more attention and require more control. F-S-N Analysis Here, analysis is based on the consumption rate. Items moved within the last 5 years may be classified as Fast moving(F), and those moved between last 5 to 10 years are slow moving(S) and those not moved within last 10years are non-moving(N). The last two groups are reviewed further to decide on disposal. X-Y-Z Analysis This analysis is done on the basis of stock in hand at the end of the financial year. 80% value of total inventory is labelled as X, 15% value of total inventory as Y, 5% value of total inventory as Z. FOR SPARES V-E-D Analysis - Vital (V), Essential (E), and Desirable (D) Vital are those spares whose non-availability results in very high production downtime loss and/or entails very high cost due to emergency purchase. Essential spares are those whose non-availability is expected to cause moderate production down-time. 3. TRAFFIC DEPARTMENT OBJECTIVES To ensure Loading and dispatch of products To ensure right quantity and right product to right vehicle and to the right destination

46

FUNCTIONS Loading Arrangement Movement Traffic department is responsible for the dispatch of products to various markets. They maintain contacts with market department and production departments. The dispatch section of marketing division gives the demand of various depots in each state to the traffic department. Based on this, schedules are formed and product is dispatched.
MAJOR TRANSPORT CONTRACTORS

A.S.R.T- A.S.R transport B.T- Bharat Transport COSMO- COSMO Carriers E.L.F- Expert Liner Enterprise L.R.L- Lucky Road line

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4.4PRODUCTION DEPARTMENT
INTRODUCTION
This is the major part of the company. This department converts the raw material into finished products. The role of production department begins from bringing the raw material into factory & finishes only when finished good are properly packed and kept ready dispatch FACT is a manufacturer of complex fertilizers & chemicals .Therefore it requires many equipments & machineries. Here, this department has a major role to play. The objective of the department include minimizing long run maintenance cost, and providing reliable condition for equipment and providing reliable condition through service , repair, replacement and modification.

OBJECTIVES
Production planning Co-ordination of production function. Co-ordination with Maintenance and Production department

STRUCTURE OF PRODUCTION DEPARTMENT

JGM (UD)

CM (Pdn)

PRODUCTION MAINTANENCE CME CSP

AMM. SULPHATE

AMMONIU M

FACTOMFOS 48

SULPHURIC ACID

PHOSPHOR IC ACID

FUNCTIONS
Planning daily production according to annual target. Submitting plan to Govt and getting approval. Monitoring actual production & checking any deviation. Making revision plans according to actual production. Maintenance of plants.

PRODUCTION PROCESS
Start here Start

Production Target Production target maintenance Maintenance

Plant Plant

Approval of production Approval of production pl plan

Checking deviations from plan

Raw material Availabilit Raw material availability, Production

Monitoring

Based on installed production capacity of the plant and production data for the previous year annual production targets for the next year are prepared . Necessary feedback is also taken from marketing department while fixing the production targets. The production targets thus fixed are presented to the corporate office for review and approval by CMD and the plant managers are informed of the same. The production and consumption ratios for the previous years are duly considered. All the data are compiled to form the production budget. A copy of the production budget is sent to the finance department for preparing finance budget. The production plan and budget are then presented to the govt. for approval. The production budget then acts as the
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basis for further performance monitoring. Based on the production plan, purchase department initiates action for procuring raw materials. In the event of any change in the annual production plan becoming necessary, the corresponding change in the raw material, requirements are intimated to the purchase department. Production planning department receives data from all the plant and other interfacing compiles them. departments and

PLANTS AT UDYOGAMANDAL DIVISION

1. .Ammonia plant 2. .Acid Plant 3. Ammonium Sulphate plant
4. Ammonium Phosphate plant/ FACTAMFOS 1. AMMONIA PLANT

The capacity of ammonia plant is 900TPD and 90TPD for synthesis gases. The raw materials used are Hydrogen & Nitrogen. Nitrogen is obtained from Naphtha(which is acquiring from BPCL). There is also a captive power plant which enables the continuous power supply 2. ACID PLANTS Sulphuric acid plant The Sulphuric acid plant is designed to produce 1000 TPD of monohydrate. It was designed by FEDO in collaboration with Davy power gas Plant. The dept produces 200tons of oleum & 400 tons of sulphuric acid Phosphoric acid plant The Phosphoric acid plant is designed to produce 360 TPD of P205 through the dehydrate route. The plant designed by FEDO in collaboration with Messer society de prayon of Belgium employs the rayon convertible process to give a product having strength of 30% P205. 3. AMMONIUM PHOSPHSTE PLANTS
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The complex fertilizer plant was designed to produce quantities of N P K fertilizers of various grades. FACTAMFOS Consists of NPK and S in the ratio 20:20:0:13.

PRODUCTS
1. Ammonium Phosphate/ FACTAMFOS 2. Ammonium Sulphate 3. FACT urea 4. Muriate of potash

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4.5 REAEARCH & DEVELOPMENT DEPARTMENT.

INTRODUCTION
In FACT the research began only in 1962 with just 4 scientists in a small scale. In later years this has grown to a highly integrated division with a team of about 12 personnel. The department has been approved by the ministry of science and technology for in house research and by the ministry of environment and forests, Govt. of India. FACTs well-equipped R&D section has advanced facilities equipped with pilot plants , modern equipment and accessories with team of highly motivated research scientists. Here important processes have been developed & patented and some of them were commercialized successfully. A variety of tests confirming the Indian & international standards has been carried out here. It has a well equipped laboratory with modern facilities. FACT has won Indian Chemical Manufacturers Association Award twice for outstanding performance in development of technology and export of technology.

OBJECTIVE OF THE DEPARTMENT

FACT R&D centre function with the aim of carrying out in-depth research in new fertiliser formulations, innovations in the fertiliser production for cost control & value addition of by products and existing product lines for the benefit of all stakeholders of the company.

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STRUCURE OF THE DEPARTMENT

MGR(R&D)

DEPUTY MGR

ASSISTANT MGR

OFFICERS (MATERIALS)

FUNCTIONS
1} Quality control cell

As per the directive of the Ministry of Agriculture, Government of India, FACT has constituted a quality control cell for efficiently monitoring the quality of finished fertilisers both in manufacturing units & field go downs, distributors & dealers. The scientific staffs in R& D are carrying out the work on rotation basis and reports are submitted to the Director(Technical)This is also a part of companys commitment to ensure the quality even after dispatching the product to market 2}Biofertilizer production R&D produces biofertilisers like Rhizobium, Azospirillium and phosphate soluble bacteria from its 150TPD plant which is established with partial assistance of one time grant in aid from Ministry of Agriculture, GOI. R&D has produced about 83.0MT of bio fertilizer during year 2009-2010 3} Quality maintenance of product at various depots across the states

53

The company is committed to provide superior quality products to its customers, Therefore R&D Centre has been entrusted with checking the quality of fertilizer samples from production divisions. The Quality check is usually period wise; sometimes surprise visits are also conducted.

THREE TIER QUALITY SYSTEM

In quality control system, FACT adopts a 3 tier quality system. The peculiarities of this method are People are posted in the company to look on to the quality of the intermediate products. A quality control lab exists in every department to ensure the quality of goods produced in the department. The officers from R&D visit the plant once a week to analyze the quality of the products.

BENEFITS DERIVED
R&D centre has produced 83.42MT of Bio-fertilizers during the year 20092010 And dispatched 72.2MT for distribution to all southern states. Based on the study, 2 alternative methods were suggested to use off grade Ammonium Sulphate from purge incineration section of KHI plant, in 150 TPD plant without affecting the quality of the final product. The trial run using strong Phospheric Acid & 40% Oxime Ammonium Sulphate Liquor has been successful in all respects & the scheme was implemented for the benefit of FACT.

FUTURE PLANS OF ACTION

R&D plans to conduct studies on the following 1. .Formulation of Boron Fortified Factomfos 2. Formulation of Chloride free NPKS fertilisers by value addition of Ammonium Sulphate

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3. Optimization of composting parameters of Coir pith to maximize the Agro nutrients

TABLE -Expenditure on R&D EXPENDITURE ON R&D Rs in Lakh YEAR CAPITAL REVENUE TOTAL As % of toal Turnover 2007-2008 2008-2009 2009-2010 1.13 0.00 0.00 26.83 36.24 48.39 27.96 36.24 48.39 0.032 0.017 0.023

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4.6QUALITY CONTROL DEPARTMENT

INTRODUCTION FACT tries to ensure good & international quality standards in its various products & systems. For this they introduced sophisticated microprocessors based digital distribution control system brings about efficiency in information management and process optimization. Moreover, the process control based on line analysis assures consistency in quality throughout the manufacturing process and in finished products. FACT has a modern & well equipped laboratory with all necessary facilities to ensure quality assurance of the products including troubleshooting facilities. Experienced and specially trained professional provide expertise at all levels of quality control departments. A customer service cell comprising trained technical experts provides extensive products applied support. OBJECTIVES OF DEPARTMENT
Ensure that product quality matches with standard quality Achieve high levels of safety Minimize delay in procurement of raw materials Maximize capacity utilization Minimize wastage& customer complaint Achieve low break down Process optimization High order booking Achieve timely deliver

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STRUCTURE OF QUALITY CONTROL DEPARTMENT

MANAGER (Q.C)

DEPUTY. MGR(QC)

ASST.MGR(QC)

FUNCTIONS
Quality Checking Process Control Assurance Pollution Control

QUALITY POLICY
Customer satisfaction through excellence Continual improvement of the quality system Provide product/service that meets customer and applicable statutory and regulatory requirements

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4.7POLLUTION CONTROL DEPARTMENT

In FACT there is more importance in pollution control activities. It has already invested 500 million in specially up plant at Udyogamandal, Petrochemical and Cochin Division with recurring Rs 120 billion annually. FACT Udyogamandal & Cochin division got ISO 14001 certification. The company has commitment to marketing department & has taken all the necessary safeguards to prevent the water & atmosphere pollution caused by efficient gases and liquid flowing out from the factory. The company maintains all efficient parameters within the prescribed limit To check the air quality there is ambient air quality monitoring station which continuously monitor the level of pollutants like Sulphur dioxide, oxides of nitrogen, ammonia, CO and hydrocarbons.

FEATURES OF POLLUTION CONTROL DEPARTMENT

Air quality monitoring stations continuously monitor the amount of pollutants in the atmosphere like Sulphur Dioxide, oxides of Nitrogen, Ammonia, Carbon monoxide etc Has a good effluent treatment plant CD and UD got ISO 14000 certification

ENVIRONMENTAL POLICY

CONSIDERATION

&

ENVIRONMENTAL

FACT produces complex fertilizers & various Chemicals. Some contents in these are dangerous to environment. Therefore FACT gives due consideration to environmental protection . It adopted several measures for environmental protection. The environmental policy of FACT is an example of this Environmental poicy of FACT Continual improvement in its environment performance Prevention of pollution Reduction of Ammonia cal nitrogen in effluents
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 Compliance with environmental rules and regulations Conservation of resources and waste minimization

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4.8 COMPUTER SERVICE DEPARTMENT

INTRODUCTION
In FACT, the computer service department began in 1965. Firstly it was introduced for finance department to handle the data processing very quickly. Later it spreads into other departments. Now it plays a major role in the functioning of the company. This centre is established in order to meet the growing needs for management information and for engineering and commercial applications. This multi system computer service centre is continuously updating its hardware and software. They started the online computing in 1986 with the Olympia/ 32 machines. In 1990 the FACT network was established using LAN and WAN in 1997 internet facility was introduced. In the year 1998 the FACT website was launched (www.factltd.com) in 1999, fact together with TATA Consultancy Services developed its online integrated information system. This system maintains the general ledger, bills payable, bills receivable, assets, material accounting, stores, purchase management, production, product dispatch, raw materials, central excise, insurance, budgeting, costing, maintenance, human resources etc. In the year 2000, SUN E250 servers were installed for OHS in all divisions.

STRUCTURE OF COMPUTER SERVICE DEPARTMENT

CHIEF MANAGER

DY. CHIEF MANAGER

MANAGER

SYSTEM ADMINISTRATOR

STAFFS 60

FUNCTIONS OF COMPUTER SERVICE DEPARTMENT In all divisions except FEDO planning and procurement of computer System support &Software development to all divisions. User training on computer awareness and applications Process data and prepare relevant information for various levels of management for appropriate and speedy decision making. Cost reduction through standard costing and budgetary control monitoring through computer. Prompt and efficient services for meeting employees information

requirements, payment of wages, settlement of claims etc.

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4.9MARKETING DEPARTMENT
INTRODUCTION
Marketing is the integral part of every business organisation. To find the right customers for the companys products is not an easy task. Here comes the importance of marketing . It is the process by which companies create customers interest in products or services. Mainly it underlies the importance to sales promotional techniques, business development etc. Only through effective marketing strategies companies can create good customer relationship & thus the company will grow. Generating customer demand for the product is the major task of marketing department. FACTs marketing department is a role model to other companies manufacturing fertilizer. The department is well known because of its innovative farmer education programmes, fertilizer festival etc. FACT created awareness about scientific cultivation and fertilizers use among farmers. This was achieved with the aid of various programs over the last fifty years.

FERTILISER MARKETING
The marketing of fertilizer is different from other products marketing. Here the demand is seasonal. Most often, the demand is high. The demand generation

depends on monsoon. We can say it is a seller market. Penetration of market is difficult in case of fertilizer. The brand image of the company also plays a major role. The whole market is also dependent on farmers awareness about fertilizers. Huge effort id needed for marketing of fertilizers.

OBJECTIVES OF MARKETING DEPARTMENT

1. Distribution & monitoring of sales 2. Sales, market research 3. Liaison with bulk buyers, central and state government officials and and

62

officials of fertilizers association of India 4. Study & respond adequately to the information from market research department and from field establishment
STRUCTURE OF MARKETING DEPARTMENT
DIR(MKG)

GM(MKG)

CM(DSTBN) CM(SALE S) AM(AP) AM(TN)

CM(TRADING)

AM( KER)

AM(KAR)

RM(AP) RM(KER)

RM(TN) RM(KAR)

SALES OFFICER (KER)

SALES OFFICER(AP)

SALES OFFICER(TN)

SALES OFFICER(KA R)

DEPO.OFFIC ER(KER)

DEPO OFFICER(AP)

DEPO OFFICER(TN)

DEPO OFFICER(KA R)

FUNCTIONS OF MARKETING DEPARTMENT

Marketing of products within and outside Kerala. Sales Conducting market research Preparation of sales report Agronomy Processing and sending replies to audit queries at the divisional level.

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 Liasson with bulk buyers, central and state government officials of fertilizers association of India. Sales force motivation through internal and external training programmes, sales Maintain both consumer and dealer satisfaction giving adequate importance to improve the levels of satisfaction continuously

SUB DEPARTMENTS OF MARKETING DEPARTMENT

The marketing department of FACT consists of various sub departments . They do important functions in the company . The major sub departments are 1. Sales 2. .Distribution Department 3. Personnel department 4. Management information service 5. Agronomy 6. Finance department
1. SALES DEPARTMENT

One sub department of marketing department is sales department. The top most authority is Chief Manager whose major responsibility is coordination of function across various depots, conduct and effective market research for analyzing market and calculating the demand and promotes the sale of products of company. FACT has major share in Kerala markets 11% in Karnataka & 6% in other states. The main products of FACTs are FACTAMFOS Ammonium Phosphate Ammonium Sulphate FACT Urea Muriate of Potash Sales promotional tools

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Over the years the companys marketing department innovated & used different techniques for the promotion of products. These techniques are grouped into: Mass Communication Techniques Personal Contact Method

A..Mass communication techniques. This technique refers to catering to the large number of people in a possible shortest time. advertisement are done through films, exhibition ,radio jingles, hoardings, Posters, farmers awareness programmes in AIR, wall painting, advertisement , direct mail service etc. B.Personal contact method This method refers to contact the farmers directly & promote them to buy the product. Various promotional methods uses for this. The methods used are Demonstrations Seminar Block demonstrations, Soil testing Dealer training, Squad programmes Realizing the importance of bringing the essential agricultural inputs and facilities for advisory service under single roof, FACT has converted its major selling points into Agro Service Centres rendering service to farmers.These centres advise the farmers on modern farm management techniques, credit availability, marketing prospects etc. It also prepares detailed farm plans for each farmer according to his agriculture pattern. Product promotional measures The following are the various product promotional measures adopted by FACT:65

FACT award scheme Agricultural seminars Demonstration programmes Village adoption scheme Group farming

2.DISTRIBUTION DEPARTMENT

Distribution of products at right time is a major function of distribution department.The top most authority is Chief Distribution Manager who is responsible for planning, monitoring & implementing of product distribution & coordination. These operations follows a centralised pattern. The marketing network of FACT spreads over southern states like KeralaTamil Nadu, Pondicherry, Karnataka & A.P. There are 4 area office and 16 regional offices in each state. The distribution network consists of 100 Agro service centres, 50 field storage points and over 7900 retail selling points. The major functions are Coordination with production and material divisions for the dispatch to various Agro service centres Analysis of fertilizer samples received from the field on the basis of complaints. Handling of imports and works connected with shortage and dispatch of imported products. 3.AGRONOMY DEPARTMENT The sale of fertilisers depends on the awareness of farmers. If they will not

provide properawareness, they will not buy the product. It is difficult process to create awareness among farmers. It includes involves an elaborate and well-planned farmer education and fertilizer promotion program, which in turn calls for a
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multiplicity of activities. Chief Agronomist has overall charge of the agronomy department, which renders technical guidance, and supervision of all agronomy services

MARKETING RESEARCH
Every organisation works in a competitive environment. To survive in the market appropriate market research is essential. Because the organisation needs to take important decisions, regarding complication, interpretation of data regarding fertiliser market etc. This is a major task of this department. It is headed by Chief Manager of Market Research.
FUNCTIONS

Complication Reporting of data about daily contribution and profit. Prepare monthly and quarterly report on sale, stock of fertilisers & dealers to Government of India. Continuous monitoring & reporting about competitors sales as per performance prescribed. Expansion of the economy of the marketing area of the country

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4.10 PUBLIC RELATIONS DEPARTMENT

INTRODUCTION
The image builder of the organization is PR department as the personnel in the department maintains close relationship with the public and media to carry out all related functions. Public relation department is under the control of the public relation officer. The backbone of the brand building process is Public relation officer. Public Relations is the latest entry to management discipline when the company starts expanding and becomes relevant when the market competition increases. Any novel idea or concept introduced by companies in the market is part of Public Relations. PR becomes saturated when the conventional methods are saturated and the company should move one step ahead in the competition.

FUNCTIONS OF POLLUTION CONTROL DEPARTMENT

FACT already has gained goodwill long time before. PR helps to maintain this goodwill. Rs.25000 has been spending to purchase fans for community development with an expectation of more goodwill earning. To spend more money on corporate advertisement this gives corporate logo and corporate image. To get good media coverage and it must ensure that there is no negative media coverage. To promote the company image by encouraging traditional art forms. M.K.K.Nayyer was a patron of Kathakali dance forms and used to provide sponsorships for them. Adopting villages by providing the villagers with education and other facilities. They also sponsor village festivals. .

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4.11 FIRE AND SAFETY DEPARTMENT

INTRODUCTION
According to Govt. rule, any company falling in the major accident hazard category or having more than 1000 employees should have its safety department. According to this FACT has its own safety department. It ensures the safety of employees working in the company

OBJECTIVES OF FIRE & SAFETY DEPARTMENT To ensure the safety of the organisation and of its employees and to act under emergency. Train the employees for ensuring safety to prevent accidents.

To avoid unsafe condition and reduce unavoidable accidents.

STRUCTURE OF FIRE & SAFEETY DEPARTMENT

GM(F&S)

MGR(FIRE& SAFETY)

DY.GEN.MGR(F&s)

ASSIST.MGRS

FIREMAN

INSPECTORS

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FUNCTIONS
Major activity is accident prevention Provides safety equipments for accident prevention Maintenance work is done frequently on all plants for leakages, failure of valves, mechanical instruments As per statutory requirement there is well equipped fire force and fir engine Department conducts mock drills periodically in coordination with state department and nearby industries. First aid centre & ambulance

HEALTH & SAFETY POLICY

FACT is committed to provide safe and healthy working environment to employees and create safety consciousness among its employees. The division will take all possible measures to prevent disasters likely to emerge in the course of operation and will ensure strict compliance of rules and regulations with respect to safety health and environmental protection.

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4.12 TRAFFIC DEPARTMENT

INTRODUCTION
The dispatch of products to various markets is the function of traffic department of fact. They has close contact with market division. From each state, The demand of various depots is send to traffic department. According to it schedule are formed and product is send.

STRUCTURE OF TRAFFIC DEPARTMENT

CM(MTLS, T&S)

DY.MGR

MANAGERS

OFFICERS

FUNCTION
The department is transporting finished products from the plants to different

depots or to customers. The product is covered with HTPG bags and each weighs 50 Kg. The product is transported mainly by Lorries, trucks or railways. At Kalamassery & also at Cochin division, there is private railway siding for FACT. A full rake takes 2200 tons & half rate takes 1100 tons of the products. A go down is at Kalamassery where fertilizer is stored. When the product reaches the size of a rake it is transported. Based on tenders, Lorries & trucks for transportation ischosen. Tender is called by the transportation section in the materials department
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Exports are mainly going through shipments & rail. Sealed containers are used for shipment transport while exports through rails depend on rake allotment by railway. For loading activity FACT has its permanent workers. When it goes back again weight is taken with the load. There were not many losses during the transportation but heavy rains can damage fertilizers.

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4.13 VIGILANCE DEPARTMENT

INTRODUCTION
Vigilance is the integral part of management. In FACT, vigilance has an important role to play. Vigilance Department of FACT is HEADED BY Chief Vigilance Officer (CVO) , who possesses the status rank and perquisites of a Functional Director. Main theme of vigilance department of FACT is preventive vigilance. In the working of

the company, the stress is on transparency and accountability.

OBJECTIVES
To act as a policeman and detect fraud or any scrupulous activity in the organization. Moreover punish such activity when takes place, thereby creating an environment of mutual trust and fair play in the organization.

STRUCTURE OF VIGILANCE DEPARTMENT

CVO (FACT)

CHIEF MANAGER

DY.CHIEF MANAGER

INSPECTOR

FUNCTIONS
Acting on complaints Inspecting in high value files Maintaining transparency and accountability of jobs Department wise monitoring of fraud and malpractices
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4.14 TRAINING DEPARTMENT

INTRODUCTION
The success of every organization depends on skill and knowledge of its human resource and its capability to keep updated with the developments in the world. The Training department equips the FACT mangers to meet the challenges in the future.. Training is provided to employees to improve the skills of employees and enhancing their capacity to cope with ever changing demands of the work situations. The training and development activities of the company have been centralized with effect from April 2004. With this arrangement, the management development centre (MDC), the training centres of Cochin division, Udyogamandal division and Petrochemical division have been centralized into one department called FACT Training Centre.

OBJECTIVE OF TRAINING DEPARTMENT

The objective is to convert the training centre in to a Skill Development Academy with a view to provide facilities for skills development and making educated youth employable

OBJECTIVES OF TRAINING
To identify training needs of the employees as a whole on the basis of uniform criteria To impart required training, which equip the employees consisting of officers and workers of the company with knowledge and skill ,required for improved performance To meet training needs with specific reference to ISO 9001:2000 and ISO 14001:2004 standard requirements To maintain a database of training details and development activities

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STRUCTURE OF TRAINING DEPARTMENT

CM (TRG)

MGR(TRG)

OFFICER(TRG)

INSTRUCTORS

STAFFS

FUNCTIONS
Training officers and workers of the company whole identified areas Facilitating post qualification training, in plant training and project work to students Meeting the obligation of Apprentice Act 1961/1973 Facility for employees to attend external training programmes

TRAINING METHODS
There are two methods of training for employees. On the job training & off The job training. On the job training

This is specific to the job and concentrates on imparting knowledge and skill to the concerned employee. Induction training include introduction of an employee to the organization and job by giving him all the possible information about organizations culture, climate, objectives, policies, practices, products etc. In job instruction training, necessary instructions about the job are given by the concerned superiors. Instruction manual is also supplied for the same and it helps the employees to deal with work conditions. Job rotation is another on the job training in which an employee made to move from one job to another at certain intervals. Job
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rotation in FACT is intradepartmental, interdepartmental and interdivisional. Intradepartmental job rotation is done within the departments so that all employees are exposed to different functions carried out in their departments. Workers employed to different plants are rotated among the plants at periodical intervals.

Off the job training

This method is employed to impart knowledge and skills in the employees in general areas which enable them to perform the job better. The main objective of this programme is personality development such as leadership quality, communication skills, attitude change etc. These methods consist of lectures, conference, group discussions, case studies, role playing and transactional analysis. Off the job training is carried out with the help of internal or external faculty on the basis of their availability and suitability. Examples of programmes conducted by internal faculty are fire fighting training, employee development programme, fire and industrial hygiene, safety etc. Some of the external organizations which provide training programme in FACT include National Productivity Council, Confederation of Indian Industries, National Safety Council and Regional Labour Institute. Some of the technical programmes conducted are innovative approach in industrial pollution control, instrumentation and energy conservation of boiler operations and maintenance of bearings.

FEEDBACK
The important aspect of training is feedback since it chcks the validity and effectiveness of training. Feedback is usually obtained department wise from the department heads prepared by the immediate supervisors of the trained employees. The changes work behaviour or general behaviour forms the feedback

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4.15COMPANY SECRETARIAT
INTRODUCTION
Company Secretariat is a statutory requirement for all companies having more than Rs.20crore worth assets.

STRUCTURE OF COMPANY SECRETARIAT

CMD (FACT)

COMPANY SECRETARY

ASST.SECRETARY

OFFICERS

STAFFS

OBJECTIVES
To carry out the company affairs as directed by the Board Of Directors and to act as a link between Board Of Directors and the company.

FUNCTIONS
To act as the Principal Officer of the company It carries out the instructions of Board Of DirectorsPublic information officer complying with right of information act

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STRENGTHS
High capacity utilization. Being a Government firm they get all needed help from Govt at time Well qualified and technically qualified staff. ISO certifications for most of divisions

WEAKNESSES
Like any other government undertakings the time taken to implement decisions is more as it is a big company. The company doesnt have any significant market research outside Kerala state compared to competitors

OPPORTUNITIES
DCM group in Netherland is planning to make huge investments in FACT PD in order to increase production capacity of Caprolactum. Scope for expansion and diversification 2120acres of land & infrastructural facilities Strong marketing network in Southern India

Switching over to LNG as feedback and fuel would reduce the cost of inputs substantially and improve the profitability of products.

THREATS
High cost of power. Increasing competition in marketing of complex fertilizers Scarcity of raw materials in International market

Increased financial constraints

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FINDINGS
SAll most all of the employees were highly satisfied with the companys rules and regulations The strong marketing network that FACT has built over the years has helped FACT survive competition The average age of the employees in the organization is 48 years as no fresh requirements did happen in the organization from 1997. Only in the present year 2008-09 did the company decide to hire management trainees. The organization in its efforts to become profitable is increasingly reducing its strength of employees The excess employees in the organization were reduced through VRS scheme.

SUGGESTIONS
1. Cost of production can be reduced by using most modern methods and modify plant to become more efficient 2. Programs like agricultural seminar and farmers education about the new way of cultivation are to be done efficiently 3. FACTs products have already captured South Indian market hence there is a need to expand operations in North India.

CONCLUSION
About FACT FACT is the pioneer in fertilizer production which paved the way for increased productivity in agricultural sector. It started with a vision to become a dependable global player in agriculture and provide self reliance in engineering and technology especially in fertilizers. With this vision it navigated through all difficulties which came on its way in the initial stages of growth. Setting up of R & D centre was an envisaged activity to keep abreast with the latest development, especially for bio fertilizers manufacture.

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With commercialization of its production at Udyogamandal, it began its expansion stage to Cochin division and finally to petrochemical division. But the reigning period of FACT came to an end with the scarcity and skyrocketing prices of raw materials. It could hardly do anything to save its declining trend as the product pricing is done by the Govt. of India. The show case example has been the drift of the company to loss even after making a record production in 1999-2000 During the year 2008-09, the production and sale of all products have shown substantial increase despite abnormal increase in raw materials prices and its limited availability. The companys overall performances during the year 20008-09 was greatly affected by the sharp rise on the prices of key raw materials also especially sulphur and naphtha in the first quarter of the financial year and global recession in last 2 quarters. Performance of the company during the first quarter of the financial year during 2009-10 shows a loss of Rs. 3452lakh as against the profit of Rs. 112lakh during the corresponding period of the previous yaer. The loss during the first quarter of 2009-10 was mainly on account of annual return around carried out during April/May 2009 and lower level of operation of Caprolactum Ammonium sulphate plants due to shortage of Benzene

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BIBLIOGRAPHY
1. Company website- www.fact.co.in 2. Annual Report of company

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