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IFFCO

Narsinhbhai Patel College of Computer Studies & Management, Kadi.

IFFCO

.1) INTRODUCTION OF FERTILISER INDUSTRY

The fertilizer industry in India consists of three major players; The Government owned Public Sector

undertakings, Cooperative Societies like IFFCO, KRIBHCO and units from Private sector. There are about 33 major producers producing N and NP/NPK fertilizers in the country at present. The fertilizer industry of India had made constructive use of the fertilizer provided by the Government of India to ensure that the country achieved reasonable self-sufficiency in food grain production. The fertilizer industry has organized itself through Fertiliser Association of India (FAI) to coordinate with the Government of India to achieve the macro-economic objectives related to agricultural sector and to provide other services .

Narsinhbhai Patel College of Computer Studies & Management, Kadi.

IFFCO

1.2) ABOUT IFFCO

The Indian Farmers Fertiliser Co-operative Limited (IFFCO) is one of the largest producers of fertilizer in India. Due to large imports of fertilizer by the country before and after independence, need was felt to make India self reliant in the fertilizer industry. IFFCO, the government of India extended a share of 51% of the authorized share capital. Some loan was taken from the financial institution. The remaining capital was raised through village level co-operative societies. Each cooperative society has a minimum of 2 farmers, each farmer having a minimum of 1 share of Rs.1000 each. At the initial stage, IFFCO managed to approximate 30,598 such co-operative societies. IFFCO was registered on 3rd the Bombay Co-operative Act. Narsinhbhai Patel College of Computer Studies & Management, Kadi. November 1967 under

IFFCO
The first plant of IFFCO was commissioned at Kalol in November 1974 to produce Ammonia. Its commercial production started on 1st March 1975 subsequently; a Urea plant was commissioned in January 1975, which began its commercial production on 1st April 1975. Kalol plant has a capacity of 3,00,300 tones of ammonia and 3,96,000 tones Urea per year. The Kandla plant was commissioned on 26th November 1974 and the commercial production of NPK/DAP (Phase 1, Train A&B). Started on 4th June 1981 and its commercial production started on 6th September 1981. Kandla plant has capacity of 3,09,130 tones per year in terms of P205. The ammonia plant at Phulpur started its commercial production on 10th October 1980 and that of urea on 15th October 1980. Phulpur plant has capacity of 2,97,000 tones of ammonia and 4,95,000 tones urea per year. The Aonla plant, fourth in the series, started commercial production in July 1988. The plant based on natural gas has capacity to produce 4,95,500 tones of ammonia and 7,20,000 tones urea per year. IFFCO is one of the largest fertilizer manufacturing cooperative in Asia. IFFCOs four plant at Kalol, Kandla, Phulpur and Aonla produced 27.36 lakh tones of fertilizer materials, which contributed about 13% of nitrogenous and 19% of phosphoric fertilizer, produced in the country. IFFCO is the

Narsinhbhai Patel College of Computer Studies & Management, Kadi.

IFFCO
biggest multi co-operative society in Asia with an authorized capital of Rs.1150 crore. Under the single window scheme 175 service centers are supplying all agriculture inputs like fertilizers pesticides,

agricultural implements and

technical advice to the farmers.

Over 1500 societies have been developed under the IFFCO-NCDC program on the pattern on service centers. IFFCO Board of Directors consists of a Chairman and Vice-chairman and other 27 directors representing National Government level state of India, Financing marketing institutions, federations. The Managing Director of IFFCO is the chief executive of institutions and all IFFCO policies, decision and rules and regulations, regulating IFFCO business and services are the major responsibilities with the chief executive Mr. U.S.Awasthy is the present Managing Director of IFFCO. The Head-office of IFFCO is at New Delhi. The functional departments at the Head Office are as follows: co-operative

Marketing Personnel and Administration Narsinhbhai Patel College of Computer Studies & Management, Kadi.

IFFCO
Marketing Accounts Agriculture Service Marketing Service and Post Operation Physical Distribution / Transportation Training and Development Public Relation

1.3) MISSION & OBJECTIVES OF IFFCO

The mission of Indian Farmers Fertilizer Co-Operative Limited (IFFCO) is to enable Indian Farmers to prosper through supply of reliable, timely, high quality agricultural inputs and services in an Environmentally sustainable manner and undertake other

cavities to improve their welfare. To achieve this mission, IFFCO as a co-operative society, undertakes several activities covering a board spectrum of areas Narsinhbhai Patel College of Computer Studies & Management, Kadi.

IFFCO
to promote the welfare of member co-operative and farmers. The activities so covered are defined in IFFCOS byelaws and the appropriate section is placed below: =>

[a] The objects of IFFCO shall be to promote the economic interest of its members by conducting its affairs in professional, democratic and autonomous manner though self-help and mutual co-operation for undertaking. [b] In furtherance of above objects, IFFCO may undertake one or more of the following activities, which are indicative but not limited to: To setup plant or plants for manufacture of chemical fertilizers and products/bye-products. To undertake production, processing and manufacture machinery or and

insecticides,

pesticides,

seeds,

agricultural

implements and other agricultural production requisites by setting up or taking on lease manufacturing units either directly or in collaboration with or as a joint venture with other cooperative agency. To setup a storage unit for storing fertilizer and other goods by it-self or in collaboration with any other co-operative institution or any other agency. institution/public sector enterprise or any other

Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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To maintain transport units of its own or in collaboration with any other organization in India or abroad for movement of goods by land and sea etc., To provide technical consultancy and other services to members societies and other agencies. To subscribes to the share of co-operative and other institution. To act as warehousing agency under the warehousing act and construct its own go downs or higher go down for the storage of fertilizer and other goods.

To

enter

into

contract

and

collaboration

for

purchases,

production, manufactures and marketing of raw materials.

1.4) IFFCO-INDIAN FARMERS SUCCESS STORY


During mid-sixties, the co-operative sector in India was responsible for distribution of 70% of fertilizer consumed in the country. This sector had adequate infrastructure to distribute fertilizer but had no production facilities of its own and hence dependent on public/private sector for supplies. IFFCO was created on November-3-1967 as a multiunit co-operative society engaged in production and distribution of fertilizer. In 1993 IFFCO had drawn up a major expansion programmed of all the four plants under over all against of IFFCO VISSION 2000. IFFCOS annual capacity has been increased to 3.69 million tunes of Urea and NPK / DAP Narsinhbhai Patel College of Computer Studies & Management, Kadi.

IFFCO
equivalent to 825 thousand tunes of Phosphates. The distribution of IFFCOS fertilizer is undertaken through over 35000 cooperative societies. The entire activities of distribution, sales, promotion are coordinated by Marketing, Central office (MKCO) at New Delhi assisted by the marketing offices in the field. In addition, essential agro inputs for crop production are made available to the farmers through a chain of 167 Farmers Service Center (FSC). IFFCO obsessively nurtures its relations with farmers and undertakes a large number of agricultural extension activities for their benefit every year. IFFCO, today is a leading player in Indias fertilizer industry and is marketing substantial contribution to the efforts of Indian Government to increase food grain production in the country.

1.5) UNIT AT A GLANCE

Name Of The Unit Indian Farmers Fertiliser Co-Operative Ltd. (IFFCO) Address IFFCO, Kandla Unit. Post Box No12, Narsinhbhai Patel College of Computer Studies & Management, Kadi.

IFFCO
Gandhidham-370201 Kandla(kuchchh), Gujarat, INDIA

Registered Office IFFCO 34, Nehru Place, New Delhi 110019 Date Of Registration On November 3 rd, 1967 As a Multi Co Operative Society.

Size of the Unit Large Scale Unit Form of the Unit Multi Co-Operative Society Name of the Products Urea Ammonia Dry-ice Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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Liquid Co2

Raw Material Used (Input) Natural Gas Associated Gas Naphtha Bore well Water Fuel Oil Electric Power

Bankers Indian Overseas Bank State Bank of India Bank Of Baroda The Maharastra State Co-Operative Bank Ltd. The West Bengal State Co-Operative Bank Ltd. Madhya Pradesh State Co-Operative Bank Ltd. The Karnataka State Co-Operative Bank Ltd. The Punjab State Co-Operative Bank Ltd. Punjab National Bank.

Auditors M/s.S.P. Chopra & Co. Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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Chartered Accountant N Block, Bombay Life Building Connaught Place New Delhi 110 001 M/s. Arun Singh & Co. Chartered Accountant F-7, Lagpat Nagar-3 New Delhi 110 024 M/s. J.C. Bhalla & Co. Chartered Accountant 18-A, Nizamuddin West New Delhi 110 013 Source: Annual Report 2005-06

1.6) ORGANISATION CHART

Chairman

Managing Director

Board of Director

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Production Manager

Finance Manager

H.R.M. Manager

Marketing Manager

Supervisor

Factory Manager

Accountant

Supervisor

Workers

Clerk

Worker

1.7) LOCATION ADVANTAGES

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Location factors occupy the major portion in total industrial development. Location facilities minimize the cost of production and facilities the production process and product distribution. This plant of IFFCO was set at Kandla because of the following location advantages. by 11 bore wells and from local market. easily. O.N.G.C. Availability of natural gas from Nearness to GEB, so they get electricity Availability Of Land. Easy availability of water from GIDC fuel, Naphtha & coal

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1.8) DIVERSIFICATION

to available needs of farmers - IFFCOS rural brand The scope includes a mix of following - Rural insurance business - Fire insurance business - Marine insurance business - Miscellaneous To serve the insurance Tremendous potential Diversified into general insurance due

Chronology of ITGI

fire insurance Co. Ltd.

- Move with Tokio Marine and signed on 8-5-2000 - ITGI got registered with FIPB approved 25%

registered of companies 8-September-2000. subscription by JV partner on 15-September-2000.

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- IRDA issued license No.106

dated 4-12-2000 to ITGI for marketing of products in commercial personal and rural sectors. December-2000. TOKIO crores the marketing activity. Agricultural extension and Programmes are conducted fertilizer use promotion programmes are on integral Part of Area/State/Zonal offices seminars. under the guidance of agricultural -Balanced fertilization programmes -Adoption of villages for all the round -Farmers meeting, field days and crop IFFCO: 49% Joint Venture partner: Japan Initial equity: Rs.100 Tokio Marine and fire insurance co.op.l. Partners in ITGI IFFCO- Operations have begun in

Tokio Marine: 26% KRIBHCO: IPL: 20% 05%

scientists programmes undertaken are:

Socio-economic development.

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audio visual aids. -Mobile soil testing laboratory with

1.9) ACHIEVEMENTS OF IFFCO


(Major Award Received)

Kolol:

-1) Seven Awards for overall performance from FAI. (Fertiliser Association Of India). 2) Seventeen Safety Awards. 3) Awards for technical innovation from FAI. 4) Two Rajya Bhasha Shield for promoting Hindi. 5) Two Awards from National Productivity Council.

Phulpur:

Total

15

Awards

from NPC,

FAI

& Energy

Commission.

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Aonla:

- Awards for best project Conservation of Energy.

Kandla:

- Total 23 Awards from Fertiliser Association of India and Safety Council of U.S.A.

Others:

2) 3) 4)

1)

Three Awards from Best Display in FAI Exhibition. Two Awards for highly commanded Account. Awards in Appreciation of Initiative in family planning. Awards for best house journal.

1.10) PERFORMANCE HIGHLIGHTS


The performance highlights of the society for the year 20032004 Production of Fertilisers Production of Urea Production of NPK / DAP Highest sale of fertilizers 57.01 lakh tonne 36.01 lakh tonne 21 lakh tonne 60.54 lakh tonne

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(Previous best 60.11 lakh tonne in 2002-03) Highest sale of Urea 2002-03) Highest sale of NPK / DAP 2002-03) Profit Before Tax Profit After Tax Turnover Plant Productivity Marketing Productivity Manpower
Source: Annual Report 2003-04

37.02 lakh tonne (Previous best 36.74 lakh tonne in

23.52 lakh tonne (Previous best 23.37 lakh tonne in

Rs. 512.70 Crore Rs. 329.67 Crore Rs. 5919.57 Crore Rs. 1367 tonnes/head 3345 tonnes/head 5977

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1.11) IFFCO VISION 2010

The following main objectives have been kept in view while formulating the VISION 2010 .

Attaining an annual turnover of Rs. 15,000 crore by 2010; Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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Installation of Ammonia and Urea plants including acquisition of fertiliser units; Backward integration to meet feedstock requirement such as Phosphoric Acid etc; Generation of Power; Exploration / Distribution of Hydrocarbons; Production and marketing of micro-nutrients, seeds, biofertilisers, pesticides etc; Value addition to Agri-products and marketing; Manufacture of Petrochemicals; Banking and Financial services; Information Technology and IT enabled services.

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2.1) INTRODUCTION OF PERSONNEL MNGT


Human resource or manpower is most valuable things of any organization. We can define if as a lifeblood of any organization functioning. We can utilize it properly or at maximum possible extent to achieve organizational as well as individual goals. Human resource or manpower is assets of any organization. Manpower management or personnel management is related with the function of recruitment, selection, promotion, demotion, transfer policy, wages and salary administration, collective bargaining, union benefits and other activities. In the opinion of Dun and Stephens, the personnel

management is the process of attracting, holding and motivating people involving all managers- line staff. According to Edward Flippo, personnel management is the planning, organizing, and controlling of the procurement, and development, compensation, integration, maintenance

separation of the human resources to the end that individuals, organizational and societal objectives are accomplished.

Source: Human resources & personnel management by K Aswathppa, published by- Tata McGraw Hill, pp 4. Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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2.2) OBJECTIVES OF PERSONNEL MANAGEMENT

Palph C. Davis has divided the objectives of the personnel management into two categories.

1) Primary objectives:

1. Relate to the satisfaction of community and social objectives. 2. Relate to the creation and distribution of some goods and services. 3. Relate to the satisfaction of personnel objectives of an organization.

2) Secondary objectives:

1. The continuity of the enterprise. 2. The effective utilization of people and materials in productive work.

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3. The economic need, or usefulness of the goods and services required by the community / society.

2.3) GRADING SYSTEM AT IFFCO - KANDLA

GRADE(OFFICER)

BASIC PAY (RUPEES)

TOTAL NUMBER OF INCREMENTS

B1 C0 D0 E0 F0 F1 G0 G1 G2 H0

Actual 23750 21500 20000 18500 17500 16000 14500 13500 10750 9100

Increment 600 500 500 450 400 100 350 350 300 250

Maximum 28550 26300 25000 23900 22300 20800 18700 18050 16750 14600

08 08 10 12 12 12 12 13 20 22

GRADE(WORKER)

BASIC PAY (RUPEES)

TOTAL NUMBER OF INCREMENTS

H1

Actual 8200

Increment 220

Maximum 12380

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IFFCO H2 J0 J1 K0 L0 L1 MO N0 P0 7600 7100 6600 6400 6050 5650 5300 4900 4100 210 175 150 130 110 100 90 80 70 11590 10425 9450 8870 8360 7760 7190 6580 5570 19 19 19 19 21 21 21 21 21

2.4) RECRUITMENT & SELECTION PROCEDURE

Recruitment and selection policy is to recruit and promote most suitable person. Suitability of candidate is to be judge by senior officer based on his Academic qualification Experience in and outside IFFCO Nature of experience Interview performance Suitability for the post Potential for future development

Engagement of APP:

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Except graduate engineers, other apprentices at unit level GET engineers Dip. In engineering/ B.Sc (PCM) Subject to manpower requirements to be engaged as IFFCO trainee for one year on successful completion of trainings, to be absorbed in L grade as J2 tech/J2 opts. On probation for six months. No needs to sponsor by EE. Age relation of 3 years. to be absorbed G2 as assistance

ITI to be engaged as IFFCO trainee for a period of trainings on successful completion trainings, to be absorbed in L1 vacancies. grade as J2 tech/J2 opts. On probation for six months. G2 subjects to availability of

months.

Charted

accountant

as

FMT

for

one

year

absorbed as AAO in gr. G2 on probation for six

B.Com. / M.Com. To be included as trainees for 1 year and on successful completion of trainings to be absorbed as accountant asstt. L1 (B.com) L (M.Com) on probation for six months. G2 subjects to availability of vacancies.

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MSW/MBA 2 years full time PG DIP. In PM. May be included as trainee for one year on successful completion of trainings may be absorbed on asstt. In J1 grade on probation for six month. STRATEGIC GROUP: - PGDBM for XLRI, TISS, PG form Delhi school of economic, Indian institutes of managements may be included as trainee (by campus selection) for one year. They are absorbed as H1 grade on probation for six months in discipline e.g marketing, finance, HR, p&a, Tpt. etc.

Direct Recruitments at Lower Management Level

P&A / finance = graduate + PG DIP from IIMs with specialization in personnel managements / finance may be included based on campus selection, in G2 as asstt.officer.

Procedure for feeling the post by recruitments

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Vacant position to be operated only when

becomes necessary. MD approved shall be obtained before initialing recruitments action. Recruitment to various post will normally be made for the followings source: EE as per provision of EEC Act 1959. By advertisements or on IFFCOs website. Campus selection form premier instructions. APP/Trainee On contract for a specified period. By deputation from other organization. Consideration Data bank application by IFFCO based on job application directly

Methods of recruitments
Post unto I grade shall necessarily be notified to the local/central EE Posts to H1/H2 grade shall be advertised in local newspapers out of which one should be in local language. Posts in grade G2 and above may be advertised on all India basis either in the newspapers or on IFFCOs website Employments activity to constitutes recruitments committee as to approve the their recommendation shall be as under: Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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1. For all posts in grade H1 and above MD 2. For all posts below H1 grade unit HEAD For H0 Mktg. Head for Mktg. division Due consideration to the considers, whose agriculture land is acquired by IFFCO. Age relation of 3 years as relaxation in qualifying marks by 5% where written examination has been prescribed. Depends of decreased employee will be entitled to age relaxations been prescribed. Relaxations qualification. of 3% marks in educational of 3 years and relaxation in qualifying marks by 5% where written examination has ---

2.5) TRAINING AND DEVELOPMENT

New employee a. Newly joined persons Apprentice Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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IFFCO
Transferred form other units New recruited officers They instruments, environment. required rules & making familiar with plant, and culture, work

regulation

administration,

b. Skill developments It is done for the person who is directly recruited from collage of study. So they just have bookish knowledge into practical work training is given.

Trainings for Existing employees

They develop skill among employee for new expansion, developments of firm, projects works, medication, change in process etc. Redevelopments: it mean they are job of different departments to a persons will go for instruments plants etc. so this is the kind of redevelopments where the person is being put in various departments. Purpose is to make him perfects in every Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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kind of activities. Which makes him confident & would increase satisfaction & the person does not get tier out his job. Job relation: They rotate the person in their own departments like example in personal relation (IR). IR will look for departments person departments like working in welfare will be transferred to transport of industrial other administrative work. So this way they get knowledge of every department. 1. Lectures/ seminars: 2. Motivation 3. Communication 4. Leadership qualities 5. Team buildings 6. Group behavior 7. Ethics 8. Positive work culture development 9. Meditation 10. 11. 12. 13. Health, Safety First Aid Yoga Pranayam Stress Management

There are the areas of subjects on which they give lectures or conduct seminars. This all things play a very vital role in developing good culture in the organization. That will give employees satisfaction from their job. For giving such lectures, they bring some outside who is professor or having a great industrial exposure. Otherwise sometimes they conduct lectures.

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Any senior officer or any employee who have good knowledge is also allowed to deliver lecture. These all are the way in which they give training for workers, officers supervisors etc.

2.6) PERFORMANCE APPRAISAL

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IFFCO
It is done on yearly bases. In March & April of every year they make performance appraisal. It is divided in two categories. 1) H1 & above officers: They do their appraisal system. 2) H2 & below workers: They do not have selfappraisal system.

H1 & above:

In this system they have been given questionnaires, which they have to fill up, by themselves. For every question there are five options: Outstanding: Extra work other than Very Good: They do their work

normal job done by Employee. timely, perfectly or before time. Good: They take help of some body Fair: They just do their own work. Poor: They do not work at all. for initiate then do their work. No extra work done by them.

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The system is like this First reviewing officer check the form that is superior or boss of the employee. Second reviewing officer check the form. Then department. Final appraisal is done by head officer i.e. Delhi. it comes to personnel and administration

H2 & below:

Their superior or supervisor they have been given questionnaires dose appraisal.

For every question there are five options: Outstanding: Extra work other than normal job done by Employee. Very Good: They do their work timely, perfectly or before time. Good: They take help of some body for initiate then do their work. Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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IFFCO
Fair: They just do their own work. No extra work done by them. Poor: They do not work at all. The system is like this Appraising officers firstly dose it. Then first reviewing officers do it. After the second reviewing officer do it. Finally P & A department do appraisal. On the basis of this system the head office decides that whom to promote and whom to suspend of what action have to be taken. IFFCO do not have feedback system. They never discuss about performance of employees. So the employees do not come to know where they are lacking. In case of workers they are given instruction everyday. But in such a huge staff it is difficult to call each and every employee and give them individual feedback. On the result of the system they decide the training needs of employee. They also decide on the basis of the performance that who are eligible for promotion, transfer and demotion. So from all this above we can come to know that how is their performance appraisal.

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2.7) PROMOTION

Competence to discharge the responsibility of each job is the prime consideration for promotion to a post. The judgment of the competence of an individual to discharge his duties will be based on: D.P.Committee For all posts in grade G1 and above For all posts in grade H1 and below (P& A) Matg. By mktg. Division . - MD - H0 ED Academic performance Experience in and outside IFFCO Nature of experience Interview performance Quality of post performance His suitability for the senior position post His potential for future development

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Details of employees in the zone of consideration for promotion falling under following categories shall be specifically brought to the notice of the members of the DPCs: enquiry. decision Disciplinary proceeding are pending or has been taken to initiate disciplinary a Employees who are under suspension, pending

proceedings. Employees who are awareded punishment as a Employees against whom vigilance case is result of enquiry. pending and or being contemplated.

2.8) DEMOTION / TRANSFER


In case, the employee is awarded punishment his disability period shall be extended by the following period: a) demotion / reduction in post/grade/pay - 2 years b) Withholding of increments with or without cumulative effect - 1 year Seniority of demoted employee shall be recorded from the original date of entry in the demoted grade not from the date of demotion. Employee brings outside influence in the matter pertaining to his/her service will be debarred from consideration from Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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promotion for a period of one year from the date of his eligibility. Employee refuses to accept promotion, with the change in the place of posting, will be debarred for promotion for 2 years.

2.9) HUMAN RESOURCE DEVELOPMENT

The society derives

strength from the invaluable

contribution made by its talented and dedicated employees, who is well accomplished to deliver in the dynamic economic scenario for gaining competitive advantage. They emphasis on upgrading the manpower bridging the gap in the current and desired competency development level by imparting including requisite in house training and programmes management

programmes including management games, group discussion, report presentetion, role play, situational exercises and case studies were extensively organization of the knowledge and reinforcing the commitment of the manpower in realizing the societies mission and vision. During the year under report, 284 need based training programmes subjects were organized for executives, workmen, employees union as well a officers association covering the on leadership styles, motivation, communicational skills, transactional analysis, team building, problem solving, decision making, creativity and management etc. Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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Continuity its efforts to the str3enghthen the compute awareness to ensure that every employee becomes a computer literate, 72 training programmes on computer awareness including hands on experience on the use of software packages namely VIKAS, FAS, IMS, HRMS, ORACLE and application like MS OFFICE Aware organized for SMMs/ Ams/ DMs and the other fields staff.

2.10) TRANSPORTATION
Bus & Minibuses: Function : Shift Duty/General Shift/school/college (Regular/exam)/Functions/Seminar/Festival Cars: Allotment of cars, based on daily basis as per requirement Plant utilization Emergency requirement Functions/Festival/Seminar School/College(Regular/Exam) IFFCO has its own vehicles Vehicles Buses Cars No of vehicles 3 5 Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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Trucks Mini Truck (Toyota) Fire Jeep Fire Fighters 1 1 1 2

All vehicles are hiring against work order procedure. It is given for two years Vehicles Minibuses Bus Cars Ambulance Jeep No of vehicles 4 7 3 2 2

This transportation facility is only given to employees of IFFCO. Every hour marketing facility from township

(Kasturinagar) to Ahmedabad and from Ahmedabad to township (Kasturinagar) is given Buses.

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2.11) HORTICULTURE & SANITATION

IFFCO, Kandla is beautifully developed horticultural plant that it looks like a plant inside a garden. All kinds of trees make the air purify. The lawn approximately 55000 square meters are maintained by electrically operated lawn cutter machine for which electrical plug points are provided. Automation is given importance for minimizing manpower. In number of areas, new lawns are developed to increase greenery and getup of plant. IFFCO, Kandla is getting various awards for horticulture beautification. In sanitation also IFFCO is going for automatic sweeping machine and scrubbers.

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2.12) ISSUE OFLIVERIES / MISC, ITEMS

PARTICULAR UNIFORM/PROTECTIVE CLOTHES: Pants Shirts Saries Blouse Socks Shoes Whether Shoes Stitching Charges for 3 pairs

FREQUENCY YEARLY

COST

858 649 1926 231 100 715 715 825

YEARLY

YEARLY

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Stitching Charges for 3 Blouses Misc. Items Ball Pen Towel-2 Coffee Mug Pocket Planner Turben Clothes for Sikh Employee Woolen Suits Woolen Joursy Gum Boots Tourch H.Y H.Y Y Y Y YEARLY 3 YEARS 3 YEARS 4 YEARS 4 YEARS 198 -

275 2875 632 -

2.13) LABOUR WELFARE SCHEME INPERF


IFFCO is a Multi State Cooperative Society registered under Bombay Cooperative Societies Act (Act 7 of 1925) under Multi Unit Cooperative Societies Act 2002. Being a Cooperative Society, the philosophy of the organization is guided by the Cooperative principles for economic and social betterment through self-help and mutual aid. IFFCO views its human capital as a key source in achieving its vision of becoming the global leader in fertilizer industry. In rapidly changing business environment it has become even more important to create a culture of high performance across the organization, which can be achieved only with mutual care for each others requirement. Apart from paying the best salary in the fertilizer industry the Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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Society has taken special care in designing various needs of its human resource. The different welfare schemes formulated by IFFCO are given herein below. Some of them have their origin linked to different statutory provisions whereas some of them are non-statutory in nature.

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19)

Medical assistance scheme Housing facility House building loan scheme Conveyance advance scheme Canteen Recreation clubs IFFCO cooperative stores Transport facilities Educational facilities Leave travel concession Maternity benefit Cultural activities and sports meets Employees Provident Fund Trust IFFCO Employees Group Gratuity Trust IFFCO Employees Benevolent Fund Trust Employees Pension Scheme Post retirement medical benefit scheme Group Personal Accident Insurance Scheme Group Life Insurance Scheme

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1.

MEDICAL ASSISTANCE SCHEME:

The society has a comprehensive medical benefit scheme for its employees. The employee and his dependent family members are eligible for reimbursement of medical expenses in respect of any ailment, disease, injury, or disability suffered by them. For routine medical treatment the ceiling is as under:

No. of family members

Ceiling

for

routine

Medical

For 2 family members For 3 family members

Treatment(per annum) Rs. 2250 Rs. 4500

In case of chronic diseases, specialized treatments, hospitalization, pathological and radiological tests special

medical sanctions are given at actual. We have full fledged dispensaries at our factories manned by doctors, nurses and paramedical staff who provide Medicare facilities to the employees and their dependents. Besides this, most of the good hospitals and nursing homes in the vicinity are on the approval panel of IFFCO, where the employees and their dependent family members can be referred for treatment, according to requirement.

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Employees and their family members are periodically examined and the report is given to them with doctors suggestions for remedial action. In the last financial year IFFCO incurred an

expenditure of Rs. 7.63 crore on medical expenses for the employees for the employees and their dependents. 2. HOUSING FACILITY:

Housing facility is the most important welfare measure for industrial worker. IFFCO has been very concerned about this issue. IFFCO has housing townships at its factories at Kalol, Kandla, Phulpur, Aonla and Gurgaon. The number of houses constructed by IFFCO at different places is 2805. The houses are well designed constructed and they are provided with modern amenities, lawns, gardens and all round greenery have been created in the township for pollution free healthier environment. In fact all townships have a very wooded look given by thousands of trees that encircle them. It adds grace to townships. Purified drinking water is provided to all townships residents. IFFCO township at Kalol and Aonla units have acquired ISI 14001 certificate for their environment management systems. Employees who are not provided with quarters are paid House Rent Allowance to enable them to make their own arrangements.

3. HOUSE BUILDING LOAN SCHEME: Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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IFFCO believes in the social and economic empowerment of its employees. This can be possible only if the employee has his own abode. IFFCO encourages its employees to have their own house. With this end in view House Building loan upto 5 lacks is given to employees, for acquiring / construction of dwelling unit. The loan carries simple interest on reducing balance. Simple interest at the rate of 6% per annum for advance upto Rs.2 lacks is charged. Advance is also given for addition / modification and renovation of the exiting house, subject to the above limit. Most of our employees have availed of facility and have acquired a house at a very young age.

4. CONVEYANCE ADVANCE SCHEME:

Advance are given to the confirmed employees for purchase of Motor, Car, Motor Cycle, Scooter, Moped and Bicycle, according to their grades. The quantum of loan for different types of vehicles is given herein below: a) For Moped b) For Scooter c) For Motor Cycle d) Car Rs.20,000/Rs.30,000/Rs.40,000/Rs.1,80,000/-

Simple interest at the rate of 5% per annum is charged on reducing balance. Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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5. CANTEEN: Canteens have been provided at our factories, which provide lunch, tea and snacks. Canteen management committees consisting of the employees also monitor the menus, cleanliness, quality of food. Canteen Subsidy is paid @ 7% of the basic pay to officers and @ 5% of basic pay to workmen.

6. RECREATION CLUBES:

Recreation clubs have been provided at our factories and at Guargon Township. It has a library, sports and games ground, tennis, badminton courts, Gymnasium, swimming pool, indoor games like billiard, table tennis etc. Employees and family members are taken on picnic from time to time. Ladies clubs have also been formed at different townships, which are managed by the wives of the employees .

7. IFFCO COOPERATIVE STORES: Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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IFFCO Cooperative societies have been established at our townships, where employees get their household goods at fairly reasonable rates. Cooking gas is made available through their gas agency. Demonstration of household goods like kitchen items, fancy items, ready made garments is organized frequently.

8. TRANSPORT FACILITIES:

IFFCO is providing bus facility to its employees for coming to their workplace at our factories and from Gurgaon Township to Delhi Office.

9. LEAVE TRAVEL CONCESSION:

Leave Travel Concession is provided to the employees limited to 18/20% of their annual basic pay once every year to enable them to incur expenses on their travel along with their family members to any where in India.

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10. MATERNITY BENEFIT:

Women employees who are covered by any law regarding Maternity Benefit are grated the benefits as per the provisions of such law. Those not covered by any law are also granted maternity leave, for period, which may extend upto, 90 days ( inclusive of holidays ) without any restriction of any duration of leave during pre-natal and post natal period.

11. CULTURAL ACTIVITIES AND SPORTS MEETS:

Inter- unit sports meets are held for overall development of IFFCO family as a whole consisting of employees of Kalol, Kandla, Phulpur, Aonla units Head Office and Marketing Offices. Cultural, Social and religious actrivities are carried out from time to time to create a congenial atmosphere. Quiz programmers are conducted frequently for the children of the employees. Training programmes are also conducted for the wifes of IFFCO employees on different matters of their interest.

12. EMPLOYEES PROVIDENT FUND:

IFFCO has obtained exemption and formed its own Provident Fund Trust, managed by Board of Trustees. It provides better facilities than that is available in Provident Fund managed Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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by the RPFC. Employees can avail loans for different purposes without any delay. On retirement the account is settled expeditiously. IFFCO had made a contribution of Rs. 14.21 crores towards Provident Fund and other funds during the financial year. 13. IFFCO EMPLOYEES GROUP GRATYITY TRUST:

IFFCO has taken a policy from Life Insurance Corporation of India, which manages the Gratuity Fund. Employees are entitled to gratuity at the rate of 15 days wages for each completed year of service. The maximum ceiling of gratuity is 20 months salary. The payment is made by IFFCO and withdrawal benefit is taken from LIC. One of the features of this scheme so that in case of death, their nominees get the gratuity what the employee would have got had he retired on superannuating. IFFCO had made a contribution of 8.58 crore towards Group Gratuity Cum Life Assurance Fund during the financial year 2001-2002.

14.IFFCO EMPLOYEES BENEVOLENT FUND TRUST:

IFFCO employees benevolent funds scheme has been formulated with the motive of providing monitoring

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assistance to the nominees of the employees, in case of their untimely death. The employee contributes rupees 20 per month with matching contribution from IFFCO. In case of death of the employee his nominee is paid a lunpsum amount of Rs. 65,000/and in addition a monthly pension of Rs. 1250/- per month is paid for next 60 months to take care of their basic needs in the time of crises.

15. FAMILY PENSION SCHEME:

IFFCO is contributing a sum equivalent to 8.33% of employee salary subject to a maximum Rs. 541/- per month to Regional Provident Fund Commissioner towards employees Pension Scheme, 1995. in case of untimely death his nominees are entitled to a family pension and in case of survival, he gets a pension to take care of his old age needs. No contribution is required to be made by the employees.

16. POST RETIREMENT MEDICAL BENEFIT SCHEME:

IFFCO employees contribute Rs. 20/- per month towards the Post Retirement Medical Benefit Scheme. IFFCO makes a matching contribution. On retirement, the ex-employees are entitled to medical claims up to Rs. 2000/- per annum. In addition, he is also entitled to reimbursement of expenditure incurred on hospitalization up to an amount of annum, which can be cumulated up to Rs. 15,000/per Rs. 1,50,000/-.

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17.GROUP PERSONAL ACCIDENT INSURANCE SCHEME: IFFCO has taken a policy from IFFCO TOKIO General Insurance Company to cover its employees round the click for all types of accidents during the course of employment and otherwise also. The employees are covered for 45 times their mean basic pay. In case of death, the compensation is double the Capital Sum Insured. In case of temporary partial disablement, the rate of compensation is 1% of the capital sum insured subject to a maximum weekly compensation of Rs. 3000/-. Reimbursement of medical expenses up to a limit of 25% of the compensation is also paid. No contribution is required to be made by the employees .

18. GROUP LIFE INSURANCE SCHEME:

IFFCO has taken a policy from Life Insurance Corporation 1,00,000/-. to provide a death cover to its employees, Rs.

equivalent to 15 months salary, subject to a maximum of

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2.14) TIME KEEPING SYSTEM


For Keeping the employees absenteeism record and leaves record, there is separate time keeping office in IFFCO-Kandla. The main functions of time keeping office are To maintain record of attendance of all employees and Trainees. Reporting of different kind of leaves by time management System. Reporting of overtime received from all departments. Submission This of absenteeism officers record to account is department every month. keeping whole functioning computerized. Time officer has 11 IDCO machines in which Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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employees punch their card while coming and going for trainees they maintain register. There are four shift in IFFCO General shift 5.50 pm. A shift 2 pm. A shift 10 pm. C shift 6 am. 10 pm. To 2 pm. To 6 am. To 8 am. To

2.15) TIME OFFICE FUNCTIONS


Leave Posting: Casual leave 14 Earned leave 33 fully paid Medical leave - 20 half pay Leave without pay Maternity leave Blood donation Rites Natural disaster Encashment at time of retirement: EL+ML=TOTAL 180+120=300 60% of 300 are encased Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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On duty Posting: For official work only.

Time laws: Person can not go for his personal work for more than 2 hours. If it is increased more then 2 it will decrease in his salary. Leave encashment:

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3.1) INTRODUCTION
Marketing has vital role in our day-to-day life. It is the broadest field among the entire different field and it is more practical then any other field. It cannot be seen but automatically it place and vital role in our routine life. Marketing is social and managerial process by which individual and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others. Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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Marketing management is the analysis, planning,

implementation and center of programmes designed to create build and maintain beneficial exchange with target buyers for the purpose of achieving organizational objectives. There are five alternative concepts of Marketing. o Production concept o Product concept o Selling concept o Marketing concept o Social concept The major functions of marketing are o Product decision o Pricing decision o Distribution decision o Promotional decision o Marketing research
Source: Marketing Management by Philip Kotler, published by- Prentice Hall Of India Private Limited, pp 7-8.

3.2) MARKETING DIVISION CHART


Marketing Division (Central Office New Delhi)

Zonal Office

Zonal Office

Zonal Office

Zonal Office

Zonal Office

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(North (North-Central (EastKolkatta) (West(South -

Chandigad) Lucknow)

Bhopal/M.P.) Banglore)

State Office

State Office

State Office

State Office

State Office

Area Office

Area Office

Area Office

Area Office

Area Office

3.3) PROMOTIONAL ACTIVITIES

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Agricultural extension programmes are an integral part of IFFCOS marketing activities. The field personnel under the able guidance of Area/State/Zonal and educational agronomists programmes. conduct Some various of the promotional

programmes undertaken are: Programmes to promote balanced use of fertilizers. Village adoption programme for bringing all round socioeconomic development. Farmers training at various agricultural institutes and research farms. Extent ion education programmes. Soil testing cum publicity vans. The farmers education programmes of IFFCO are broadly classified as under. Demonstration Field programmes Seed multiplication Village adoption

3.4) MARKRTING OFFICES


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IFFCCO distributes its fertilizer material through more than 33000 co-operative societies. To have an effective coordination with these cooperative societies and the farmers. IFFCO has a wide marketing network spread throughout the country. The illustration depicts the field structure of the IFFCO. IFFCOS marketing activities are coordinated through five Zonal offices. Each Zonal office oversees the activities of State offices, which in turn coordinate the various activities of the Area offices. Area offices conduct IFFCOS marketing operations in few districts through field officers. At present, about 450 field officers undertake distribution of fertilizers and various other promotional activities. IFFCO undertakes a large number of these programmes to educate the farmers on latest facets of modest agricultural practices.

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3.5) PRICING POLICY

The prices of various grades of fetilisers in India are covered under the administer pricing mechanism i.e. the prices are regulated by the government. The work of administering the price fund account and determining the retention price from time to time has been entrusted to the Fertiliser Industry Coordination Committee (FICC), an office attached to the Department of Fertilizers, Ministry of Chemicals & Fertilisers. Of late there has been a small change in this policy by which some of the fertilizers (including NPK grade 1, 2 and DAP) has been decontrolled and brought out an administered price mechanism. Pricing of decontrolled fertilizers manufactured by the society and not to the sale of other products like Malathion, Dry ice, sale of ammonia to outside parties, etc. Imported fertilizers are also outside the scope of pricing system.

3.6) GOVERNMENT POLICY TOWARD FERTILIZERS


First it enabled consumer policy of fertilizers to be kept at a reasonably low level thus ensuring the incentive to use fertilizers despite the cost of making it available tending to be higher in a world o inflation. Second, it ensured a reasonably attractive investment climate-keeping manufacturer in business despite their realization being pegged at an unrealistically low Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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level, unrelated to cost of production also. The fact that the price fixed for a particular unit is related to prescribed efficiency norms in respect of capacity utilization (in ammonia plant for instance, 90% norms was assumed) and consumption of raw materials and utilities, ensured that the unit will be able to earn return allowed under the system (12% post tax on net worth) only if it achieved the prescribed standards of efficiency. In short, the fundamentals of the RPS were so designed as to contribute to a growing and efficient fertiliser industry on the one hand and increasing consumption on the other.

3.7) DISTRIBUTION CHANNEL

Most producers do not sell their goods directly to the final users. Between producers and users stand intermediaries who work on behalf of the producers and users. These intermediaries are called channel of distribution. Marketing channels are sets interdependent organizations involved in the process of making product available for use or consumption.

Distribution channel of IFFCO

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The fertiliser has no direct Marketing. Its marketing is totally done through co-operative societies. IFFCO follows the following distribution Channels. IFFCO Fertiliser Sole Distributors Gujcomasol Dist. Co-op. purchase & sale Union Ltd. (Dist. Wholeseller)D.P.S.O. Taluka Co-op. purchase & sale Union Ltd. (Taluka Agent) T.P.S.O Village Co-operative has recognized DPSO as it district

Gujcomasol

wholesaler. They turn in turn appoint taluka agent. Societies have to place their indent through TPSO. A charge has been bought into effect from April 1978. so as to ensure that the link of Co-operative. Hereby is well observed. Village Co-operative to get their supplies from TPSO. They do not have direct connection with DPSO. Or Gujcomasol. The Co-operative network presently amprises 29 state level marketing federation, 16 special commodity Co-operative federation, 171 District level marketing Societies. 3632 general purpose marketing societies and 3290 special commodity societies supported by about 89000 village level Co-operative in the Country. In short, presently about 33% of the fertiliser supply is to distributed through this channel. Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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3.8) SALES PROMOTION

Promotion: -

Promotion call for developing a good product, pricing. It attractively and making it accessible to target customers promotion includes Advertising, Sales Promotion, personal selling, public relations and publicity and direct Marketing.

Advertising: -

Advertising is one of the most common tools companies use to direct persuasive communication to target buyer and publics. Advertising is any paid form of non-personnel presentation and promotion of ideas, goods or services an identified sponsor. For effective Advertising five M must be known by marketers. Mission objectives. Money Message Media :-How much can be spend? :-What message should be spend. :-What media should be used? :-What are the advertising

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Measurement evaluated. IFFCO media. Farm magazine. Radio & Television. Literature. Press, Hearing and Wall printing. Kandla also advertises through different :-How should the result be

Sales Promotion: -

Sales promotion consists of a collection of incentive, tools, mostly short term, designed to stimulate quicker and/or greater purchase of particular products/services by consumers to the trade. In short, it is a variety of short-term incentives to encourage trail or purchase of a product or service. The difference between advertising and sales

promotion is advertising offers reason to buy while sales promotion offers an incentive to buy.

Promotional Offers: Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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As we know that the demand for fertilizer is much more than supply of it so IFFCO need not do for sales promotion or Advertising but even quite to aware people about IFFCO product, they publish IFFCO news from head office namely IFFCO Fertiliser Marketing News.

Other Marketing Programs: -

Block/ Crop demonstration with field day. higher productivity and Balanced necessary. To promote technology of integrated and sustainable agriculture. Soil Testing. To and efficient promote use that was for

profitability. fertiliser

To wider the base of soil testing as a diagnostic tool on which every farmer must rely for what proper follow up and interaction will be essential part of soil testing. IFFCO had 53552 soil jamples.

. Farmer Training Program (Crop Seminar)

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To organize need based programme for the

farmers. To prepare farmers for crop diversification and farming system for higher profitability per unit land. To prepare farmer for integrated agriculture while is sustainable and environment friendly. Farmer Service Centers (FSCs): A part from selling fertiliser through a network of more than 3400 Co-operative societies, The society provided fertilizers and other agroinputs to the farmers through a network of 168, IFFCO Farmers service Centers (FSCs) spread over twelve states and two union fertiliser. Besides fertiliser, these centers also provided quality During seeds, agro chemicals, implements and modern agriculture technology to the farmers. 1997-98, 1.34 lakhs tones of fertiliser were sold to the farmers through the FSCs. In addition these FSCs also sold seeds and afro-chemicals worth Rs. 7.12 crores to the farmers during the year under report the total over of the FSCs during the year was Rs. 101.38 crores. IFFCO NADC Scheme: Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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IFFCO in collaboration with National Cooperative Development Corporation (NCDC) has decided to develop nearly 2500 village level societies on the pattern of IFFCO farmers service centers. Under the Scheme, NCDC provided the loan to the co-operative societies up to maximum Rs.30, 000/- per society through IFFCO. An amount of Rs. 424.94/- lakh had been released to 1450 societies through IFFCO. The loan was repayable to NCDC in 10 equal installments. IFFCO provided furniture/fixture and agricultural equipments (1) Rs 1200/- per society get surlier of IFFCO or through the Apex cooperative Marketing federation of the respective state and sell IFFCO fertilizers to the farmers federation of the respective state and sell IFFCO fertilizers to the farmers. Cooperative Rural Development Trust (CORDET) The cooperative Rural Development Trust (CORDET) Promoted by IFFCO has been providing practical training to the farmers to improve their skills in agriculture product ion horticulture, dairy, poultry, and progression leadership at the village level. The trust has two establishments, one each at Phulpur in U.P and Kalol in GUJARAT. In addition to imparting training, CORDET also produce quality

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seeds and saplings of fruits Ornamental and

forestry plants. The Kandla center has been conducting special training programmer for women in farm as well as household activities. CORDET also extended soil-testing facility to the farmers by testing 50678-soil sample during the year 1997-98 at against 45118 in the year 1996-97 in two soil testing laboratories at Phulpur and Kalol. Production of bio-fertilisers is also under taken through a 75 tones capacity plant at Phulpur, during the year 1997-98, 44.18 tones of biofertilizers were produced. The plant is capable of producing various staring like azotobacter, azosoporillum, PSB etc. Publicity: At refers to a variety of programs designed to promote and/or protect a companys image or its individual products. With the completion of IFFCOs three expansion projects, the volume of production and sales has gone up to match the changed scenario, IFFCO has formulated a multi-pronged publicity strategy to combat the stiff completion in the product and services, press, Doordarshan and Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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nill India Radio have been extensively be plowed to promote the corporate image as well as the concept of balanced fertilization and efficient fertiliser use. Out door publicity tools like wall painting, hoarding, roadside signboards exhibitions caring IFFCOs message have been extensively used at strategic locations in rural and semi rural areas. The Doordarshan, All India radio and national newspaper, has given the activities undertaken by the society. A video firm entitled BAAT PATE KI in Hindi.

3.9) MARKETING RESEARCH


Company always try to get information about how many and what kind of people are using or will use their product. An such a situated the marketing intelligence system will provide detailed information needed. system. Marketing research is the systematic design. Collection analysis and reporting of data and finding reliant to a special marketing situation facing the company. They need former marketing

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IFFCOs product have much more demand. So there is no need for market but IFFCOs all four plants are going for expression so they have tries to analysis market research. Marketing Research Progress Problem Recognition Preliminary Investigation Data Collection Analyse The Data Present The Findings Marketing Strategy Product Oriented Distribution Oriented Advertising Oriented Price Printed Promotion Oriented

IFFCOs 16

th

marketing converrence hend at lucknow

in feb 1996. the main aim was marketing strategy in libralised environment. About 200 officeal all India agricultural universities and other institution participated in this conference. Dr. J.D.Sinh, inter-national intitute made a forceful presentation on effective marketing strategy and elaboratated the following points.

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Not just think about customer, satisfaction of your customer. Not just sell to Co-operatives, self through cooperative and also build the channel countervalence power. Not just sales target, focus on improving the quality of sales market force. Not just complete on price, focus on value and enhancement and prand equity. Not just the bottom line, what is above bottom line is more important.

Internal required efforts strengthen the co-operative to market the product efficiently. Improve the quality of bag with reference to design painting color weight etc. Research and development efforts to be launched for value enrichment in IFFCO products. Noarding and other publicity board need excellent maintenance and presentation. Farmers must be evaluation on co-operative naturient cost in different fertilizers. Good catchy namer many be proposed for IFFCO products. Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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4.1) INTRODUCTION

Any organization, whether it is small or large scale, clears with financing every businessman keeps separate records of financial matters. Finance and account department of the business depends upon the financial policy of the firm. Financial management is mainly concerned with finding out rational basis through answering following three questions. 1) 2) 3) What total value of funds should be invested in the business? What specific assets should the business require? How should the required funds be raised?

The scope of financial management comprises traditional approach on procurement of funds rather than its allocation and use. While modern approach covers not only acquisition but also allocation and utilization of funds. Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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The

firm

may

have

any

objectives

but

financial

management has the objectives of profit maximization or weather maximization. Keeping in mind this particular objectives only major 3 decision are taken that are: Investment Decision Financing Decision Dividend Policy Decision

4.2) FUNCTIONS OF F & A DEPARTMENT


o To make payment o To receive payment o Accounting of transactions as per o Accounting standards published by institutive of

chartered accountant. o Companys significant accountancy policy o Master chart of account Preparation of Budget viz., Revenue Consumption/ Budget

Expenditure

Procurement of Raw material, Packaging materials, general stores, spare parts etc. budget

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o Capital Budget Advances to employees for HBL & Conveyance advance Budget Submission of Management Report Provisional Monthly Report Inventory Report Standard cost vs. Actual Cost Variance Report Revenue / Capital Budget Status Report Monthly, Quarterly, Yearly Balance Sheet, P & l account, etc. o To get the account audited by Internal auditors Statutory auditors

o To arrange fund Daily forecast Weekly forecast Monthly forecast Quarterly forecast Yearly forecast

Various sections of F & A department and their roll of function

o Bill section Making of Payment Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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Accounting of Transaction i.e. Bill inward register SRV register W.O. adjustment register CWIP register MIC register etc. o Stores section Control of inventory Booking of receipt of inventory based or SRVs Booking of consumption based on SRVs Physical verification as per A, B, C, Analysis Maintaining of PSL Review of slow / non-moving items, identification of obsolete items and adjustment there of as per H.O. guidelines.

o Pay roll & Establishment section Employees related payments like salary & wages advance for expenses, TA / DA Medical Reimbursement, LTC, HBL, Conveyance Achievement etc. o Cash & Bank section

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Arranging of fund as per the requirement of different sections. Preparation of cheque. Writing of cashbook / bankbook / bank reorganization etc. o Insurance section To renew policies from time to time. To ledge the claim in the event of occurrences. To purchase the claim and get the settlement.

o Books Preparation of monthly / quarterly / yearly accounts. Getting the audit of accounts. Co-ordination with auditors. Submitting of actual cost data on yearly basis. Getting of tax audit etc. Analysis of financial ratios and Pay back period.

o Books of accounts a) Accounts manual Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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b) Significant accounting policy c) Guideline on closing of accounts d) General guideline e) Power of officers f) Master chart of accounts g) Maintaining chart of accounts h) Maintaining of primary books i) Cash-books j) Bank-books k) Journal Books l) Ledger m) Financial reports n) Trial balance o) Bank reconciliation p) Profit & Loss account q) Balance sheet r) Cost of production s) Actual Vs. Budget/Standard cost variance report with reason for t) Review of ratios u) Solvency ratios v) Profitability ratios w) Turn over ratio (stock ratio) x) Service ratio variation.

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4.3) FINANCIAL PLANNING

Planning is pre-requisite for managing any little things too. When we think about fund, financial planning comes at first. Financial planning answers the following questions: o What should be funds requirements? o How should procure funds? o From where to procure the funds? o How to utilize the fund at maximum level?

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Head office deals with the arrangement of raising the funds and provides funds required by any of four plants. In IFFCO, they make weekly forecast of funds in which requirement of each department is mentioned. After that the proposal is sent to head office and got sanction from there. So, financial planning has a significant place for making decision of requirement and utilization of funds.

4.4) FINANCIAL LEVERAGE


Financial leverage is related to the financing activities of a firm. It results from the presence of fixed financial charges. Such expenses do not very with the operating profits. They have to be paid regardless of the amount of EBIT available to pay them. After paying them, the EBIT belongs to the shareholders. Financial leverage is concerned with the effect of changes in

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ability of a firm to use fixed financial charges to magnify the effect of changes in EBIT on EPS.

EBIT D.F.L = EBT 73,690 = 69,557.31 = 1.06

Implication of DFL. IFFCO has 1.06 D.F.L., which is very less. IFFCO did not issue any debenture and so it has not any pay any interest and so it has less risk and work smoothly.

4.5) BUDGETING OF IFFCO

Now a days, the increasing use of modern techniques and procedure. Budget is most effective tool for planning and Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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controlling of various activities and also for effective allocation of scare resources among alternative uses. In brief, budget refers to the statement of plan of activities of an organization terms for a definite future period approved in advance by top management.

Objectives of budgeting To ensure adequate return in capital investment To control expenditure To ensure availability of adequate working capital for efficient operation of plants and for capital expenditure.

Budget period Generally period of 12 months is treated as normal period for the purpose of budget. In IFFCO budgeting exercise is done for financial year April to March every year. The following procedure is followed in IFFCO. 1). Capital budget: Review of on going project. List of completed items. Review of financial sources. Review of budgeted estimates. List of dropped items with justification.

2). Revenue budget: Cash budget Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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The monthly break as being prepared for fund requirement for each activity of expenditure to ensure availability of adequate capital for efficient operation of plants. Purchase budget Procurement budget for raw materials, packing material, power, fuel, water etc. Consumption budget Consumption of capital. Employee remuneration and benefits. Miscellaneous income. Cost of production. Fixation of sales target. Review of human resources. Repairs and maintenance expenditure .

3). Advances / Loans to employee budget In order to maintain industrial relations, create welfare activities are also considered while preparing the budget and provision for these advances are also made of the accordingly for organization. looking to the financial resources

4). Budgetary control For effective control of the budget, proper control of expenditure is necessary and therefore every month a Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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comparative statement for the actual expenditure incorrect vs. budgeted estimates is prepared.

4.6) PROFITABILITY AND DIVIDEND DISTRIBUTION

Profitability Profitability measures the efficiency of the business. The profitability of the firm can be measured by its profitability ratio.

Gross Profit Gross Profit Ratio = Net Sales 73,784 *100 3,75,339 = 19.66 *100

Net Profit Ratio

Net Profit = * 100 Net Sales 25,240.42 * 100 3,75,339 = 6.72

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Dividend Distribution How much dividend should be distributed is an important consideration. IFFCO has paid 14.76% dividend to the societies.

Dividend Per Share Dividend Payout Ratio = Earning Per Share 219187.00 = 14.76 14849.66

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4.7) RATIO ANALYSIS

Ratio, broadly speaking, is the numerical relationship between to numbers, and hence ratio analysis of statement stands for the process of determining and presenting the relationship of items and groups of items in the statements. The following are the importance and uses of ratio analysis.

Importance of ratios:

The ratio analysis is one of the

powerful tools of the financial analysis. It is used as a device to analysis more clearly and decisions made from such analysis. The use of ratio is not confined to financial manager only. There are different parties in ratio analysis for knowing the financial position of the firm for different purposes. The supplier of the goods on credit, banks, financial institutions, investors, shareholders and management make use of ratio analysis as a tool in evaluating the financial position and performance of a firm for granting credit, providing loans for making investments in the firm. Thus, ratios have wide applications and are of immense use today.

Uses of ratio analysis: uses of the ratio analysis:-

The following are the management

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1). statements are not

The financial statement are prepared primarily as end in itself and no meaningful

for decision-making. But the information provided in the financial conclusions can be drawn from these statements alone. Hence, ratio analysis helds in making decisions from the information provided in these financial statements. 2). Ratio analysis is of much help in financial

forecasting and planning. Planning is looking ahead and the ratios are calculated for a number of years worth as a guide for the future. Meaningful conclusions can be drawn for future from these ratio. Thus, ratio analysis helps in forecasting and planning.

3). The financial strength and weakness of a firm are communicated in a more easy and understandable manner by the use of ratio. The financial statement conveys the information to the one for whom it is meant. Thus, ratios help in communication and enhance the value of financial statements.

4). The ratio even help in co-ordination, which is of atmost importance in the effective business management. Better communication of efficiency and weakness of a firm results in a better coordination in the firm.

5). Ratio analysis even helps in exercising effective control over the business. Standard ratio can be based upon the Perform of financial statements and variances or deviations, if any, can be found the actual with standards so as to take a corrective action at the right time. The weakness or otherwise, if Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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any, come to the knowledge of the management which helps in effective control of the business.

Other Uses-Ratio analysis can also be used for other purposes. They are as follows:-

1). Utility to shareholder or inventors- An inventor in the company will like to asses the financial position of the concerned where he is going to invest his first interest will be the security of his investment and then return in the form of dividend or interest.

2). Utility to creditors:- The creditors or suppliers provide short term credit for the concerned. They are interested to know whether the financial position of the concerned warrants their payments at a specified time or not. The current, liquid and Acid ratio will give an idea about the firms liquidity position. 3). Utility to employees:The employees are also

interested in the financial position of the concerned, especially profitability. Their wage increases and amount of benefits are related to the volume of profits earned by the firm. Various profitability ratios relating to gross profit, net profit, etc. enable the employees to put forward their viewpoint for the increase of wages and other benefits. 4). Utility to government:- Government is also interested to know the overall strength of the industry. Various financial statements published by industrial units are used to calculate ratio for determining short term, long term and overall Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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financial position of the firms. Profitability indexes can also be prepared with the help of ratios. Government may base its future policies on the basis of the industrial information available from various units. The ratio may be used as indicators of overall financial strength of public as well as private sector. In the absence of the reliable economic information the government plans and policies may not prove successful .

Source:

Finance Management by Khan & Jain, Fourth Edition,

published by Tata Mc Graw-Hill Publishing Company Limited.

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FINDING AND SUGGESTION

After the year 2005 Govt. cut down the subsidy and IFFCO get 40% subsidy from the Govt. This decision make financial problem to the IFFCO.

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Low availability of Natural Gas from the ONGC and Gail That increase the cost of production. Make own Power Generation Plant for generating the electricity so that dependence on GEB reduces and also gets electricity at lower cost. In Inventory Management, IFFCO is not calculating the Carrying cost and any Ordering cost i.e. no any inventory techniques is use for calculating the optimum inventory. In the Debtors Turnover Ratio, which is very low as compared to standards that delay payment of the debtors. Compare to the other competitors some raw

materials; IFFCO is getting at high cost, like LSHS.

CONCLUSION

IFFCO is leading fertiliser production unit in fertiliser industry. It aims to produce more and more fertiliser and to distribute it to co-operative societies at District Taluka and Village level. It is going on very smoothly because of its management and employees participation. During my Vocational Narsinhbhai Patel College of Computer Studies & Management, Kadi.

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Training at IFFCO Kandla I observed some points which comprise positive and negative aspect of the unit.

Positive Aspect of the Unit Efficient management. Lot of Welfare activities. Healthy relationship between management and union. Strict rules and regulation.

Negative Aspect of the Unit Possibility of accident due to Ammonia. No existence of marketing department in the unit. No direct marketing.

From the Vocational training, I got at this organization was an excellent and it was superb experience for me to undergo this training.

Bibliography

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Books:

Marketing Management by Philip Kotler, The millennium Edition, published by Prentice Hall India.

Finance Management by Khan & Jain, Fourth Edition, published by Tata Mc Graw-Hill Publishing Company Limited. Human resources Company Limited. Search Engines: & personnel management by K

Aswathppa, published by Tata McGraw-Hill Publishing

www.google.com
Website:

www.iffco.nic.in

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