Rex-KKR Group of Companies Os

An Organizational Study at K.K.
R Mills
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CHAPTER 1 INTRODUCTION
SJCET School of Management
An Organizational Study at K.K.R Mills

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1.1 General Introduction
An organization study implies that a comprehensive and systematic approach adopted to get familiar with the organization structure, working of an organization and staffing process as a whole. The major objectives are to determine if the staffing levels are appropriate and if the structure of management is serving the needs of the organization. The word organization in the context of the broad term administration, refers to the persons, committees, or departments who make up a body for the purpose of administrating something, and without its proper care at the higher, middle and lower levels of administration, it would be practically impossible for any management to run the operations smoothly. In an organization study each and every department in an organization is observed and analyzed in detail.
An organization study give a very clear picture of the functioning and the methods adopted in the organization and it will help the trainee in knowing a lot about the basic functioning of the organization. Experience is the best agency through which we can learn almost anything under the sun. An ounce of practice is equal to tones of theory. The study also gives the management trainee an opportunity to interact with the people working in the organization and to internalize their good qualities. It is very important from a trainees point of view to know how a problem is tackled by the people working in an organization.
An organization study may be conducted on a stand-alone project or may be incorporated into management audit. It is through suffering we learn practice; by faceting danger we learn courage; by sorrow we learn sympathy and by mistakes we reach perfection. Likewise theoretical knowledge will not do to face the challenges in the real life. The major benefit of organization study is that operational efficiency and service delivery can be enhanced through improved staff utilization and deployment and improved exporting relationship

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This study will be helpful not only for the trainee but also for anybody going through this report and will give a clear picture about the organization.
1.2 Scope of the study

The scope of the study is to familiar with the organizational structure, functions of each department and in a real situation, how the managers handle the issues. The organization study helps to understand the history, structure, activity and products of the company and its contribution to Indian rice industry. This study exposes to the various departments namely production department, sales department, purchase department, finance department etc. and their interdependence on each other for the successful running of an organization.
1.3 Objectives of study
To familiar with the organizational situations. To understand the structure of the organization. Study the growth, background and prospect of the company. To understand the function and working of the various departments. To know the duties and responsibilities of Key personnel. To observe the work culture existing in the Organisation. To find out the strengths, weaknesses, opportunities, and threats in an organization.

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To understand the various practices applied in the organization.
1.4 Reasons for selecting the company

NIRAPARA- the brand name in which KKR mills markets rice, is today the largest selling brand in Kerala and has become a household name. They are one of the major players in south Indian rice industry. It is the first company which introduce modern rice processing house in Kerala. The company takes initiative to many social activities also. All time company maintains quality of goods and services. Social acceptance and brand value of the company attracts me to select this organization.
1.5 Study plan

Period of study: The study covered a period of 4 weeks, from 02-05-2012 to 02-062012 First week In the first week, different units in production departments were visited and reported on the manufacturing process and the hierarchy in each unit. Second week In the second week, a study was made on rice industry, major players in this industry, world and Indian scenario. Also a detailed study of the company covering the structure of the company, its objectives, history, future plan, financial plan, etc. was made. Third week The structure and functions of various departments were studied in this week.

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Fourth week SWOT Analysis was done and final observations and suggestions were presented to the management. Final draft of the report was also prepared.
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Research Methodology
Research is a search of knowledge. It is a careful investigation of inquiry; especially through the search of new facts in any branch of knowledge. It is the way to systematically solve the problem. It is necessary for the researcher to design the methodology for the problem. Personal observation, interview with key personnel of each departments and information drawn from company manuals and journals facilitated the collection of required data. Collection of data includes both primary and secondary data.
1.6.1 Sources of data
The data required for the study is obtained from primary as well as secondary data sources.
Primary data

6 Primary data is a data collected by the investigator himself for the purpose of a specific inquiry or study. Primary data were collected through personal interviews with concerned officers of the company.
Secondary data
Secondary data were collected from books, periodicals, literature published, Internet and from other various documents like company manuals, journals, websites and from other company records.
1.7 Limitations of the study

The managers, supervisors, workers etc. were busy at their own work. Due to inadequate time it is not possible is to analyze all aspects relevant to study. Some company documents are confidential in nature. So it was not possible to include all those items.
1.8 Chapter scheme

The present study is divided into six chapters. The first chapter deals with the introduction, objective of the study, scope and limitations of the study.

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The second chapter is about industry profile. The third chapter deals with the company profile. The fourth chapter includes departmental details The fifth chapter deals with the SWOT analysis, Observations and Suggestions. The sixth chapter gives the conclusions
CHAPTER 2

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INDUSTRY PROFILE
2.1 INDUSTRY PROFILE

Rice cultivation is the principal activity and source of income for millions of households around the world, and several countries of Asia and Africa are highly dependent on rice as a source of foreign exchange earnings and government revenue. Rice mill Industry is flourishing day by day, since rice is an unavoidable commodity for our day today life. Kerala is a consumer state. We have to depend on other states in order to get paddy. The rice mil1 industries are mainly concentrated at Kalady. There are around 200 rice mills at Kalady alone.
Food processing is seen as an industry with quick returns, whose gestation period is much less than that of other industries. This is also the reason why a large number of NRI investors have shown keen interest in food processing. In the past seven years, since food processing became the new wave industry, many foreign giants

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have decided to enter this segment of the Indian market. The changing life-style of the people, the increase in urban population, the rise in the literacy level and the enlarged T. V coverage have triggered greater scope for the food processing industry.
There is a strong economic justification for setting up food industries, from the viewpoints of farmers and consumers, employment generation and industrialization. It should however be admitted, the food processing industry in India is still in its infancy. Institutional demand, the requirements of hotels, restaurants and household consumption comprise the domestic demand for the processed food industry. The two characteristics governing consumption of processed food in the household sector are the change in food habits and standard of living of the people.
As regards the structure of the industry, it is noticed that small and big coexist in the industry in India. The food processing industry covers the entire range from wheat flour, rice milling, oil extraction, sugar etc., to the latest of the ready to eat kind of tinned and preserved foods. The products need to be manufactured and marketed appropriately in order to tap the domestic and export potentials of rice, wheal, cereal products, sugar, preservatives, confectionery, dairy products, fruits, vegetables; fish products, meat, poultry, ice creams, tea and coffee.
According to the confederation of Indian Food Trade and Industry, the food processing industry is the largest determinant of GNP, accounting for 19 percent of the total industrial production and employing around 18 percent of the national labour force.
2.1.1
PROBLEMS

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The industry has been facing a number of constraints; unreliable database for availability of raw materials, shortage of raw materials, infrastructural limitations, limited research and development support, difficulties in technology transfer and absorption, unorganized state of industry, inadequate incentives, problems relating to quality control, implementation of the prevention of Food Adulteration Act, high cost of product development and promotion, taxation policies that continue to treat this industry as catering to the elite sections and problems relating to packing.
The policy measures, which the government has sought to initiate, are meant to remove those constraints. It has provided a single window for the industry, which hitherto had to deal with five departments.
The Government of India encourages the food processing industry motivated by following objectives; To put to use the enormous amount of vegetables, fruits and grains, which were otherwise, go waste for lack of local sales and storage facilities.
To generate rural employment.
To bring about a change in the eating habits of the people, by making them more accustomed to fast and processed foods.
The prospectus for the food processing industry has become bright with growth of international tourism, changes in the consumption pattern in Metropolitan Centers and enormous export potential.

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2.2 WORLD SCENARIO
Rice is the second largest produced cereal in the world. At the beginning of 1990s annual production was around 350 million tons and by the end of the century it reached 410 million tons. The worlds major rice producing countries-including the two most populous nations, China and India-have emphasized the importance of continuing to develop new rice varieties to guarantee Asias food security and support the regions economic development.
Production is geographically concentrated in Western and Eastern Asia. Asia is the biggest rice producer, accounting for 90% of the worlds production and consumption of rice. China and India, which account for more than one third of global population supply over half of the worlds rice. Brazil is the most important non-Asian producer, followed by the United States. Italy ranks first in Europe.
At least 114 countries grow rice and more than 50 have an annual production of 1,00,000 tons or more. Asian farmers produce about 90% of the total, with two countries, China and India, growing more than half the total crop. For most rice producing countries where annual production exceeds 1 million ton, rice is the staple food. In Bangladesh, Cambodia, Indonesia, Lao PDR, Myanmar, Thailand, and Vietnam, rice provides 50-80% of the total calories consumed. Notable exceptions are Egypt, Nigeria, and Pakistan, where rice contributes only 5-10% of per capita daily caloric intake.

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WORLD TOP 10 RICE PRODUCING COUNTRIES
Country
2009-10
2010-11
China
134,330 99,150
136,000
India
84,000
Indonesia
38,300
37,600
Bangladesh
31,000
30,000
Vietnam
24,430
23,795
Thailand
19,400
20,000

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Burma
10,150
10,730
Philippines
10,753
10,710
brazil
8,595
8,840
Japan
8,029
7,620
Table 1
Today rice is grown and harvested on every continent except Antarctica, where conditions make its growth impossible. The majority of all rice produced comes from India, China, Japan, Indonesia, Thailand, Burma, and Bangladesh. Asian fanners still account for 92% of the worlds total rice production. More than 550 million tons of rice is produced annually around the world. In the United States, farmers have been successfully harvesting rice for more than 300 years. There are thousands of strains of rice today, including those grown in the wild and those which are cultivated as a crop. Global rice production in the recent years has fluctuated between 375-400 million tons. Consumption at around 410 million tons has been above production in the recent years.
Global ending stocks, which had average above 120 million tons in the 1990's is currently getting reduced to 80 million tons.

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Asia is the biggest rice producer, accounting for 90% of the world's production and consumption of rice.
Per capita rice consumption has declined in recent years in many of the wealthier rice-consuming countries, such as Japan, the Republic of Korea and Thailand, because rising incomes have enabled people to eat more varied diet.
Although rice is widely grown and consumed, less than 6% of world production (20-24 million tons) is traded annually.
Major importing nations of rice are West Asian countries and African countries. Apart from it countries like Japan, Malaysia, and Brazil also figures in top 10 importing country. In West Asia and Middle East Basmati rice is favorites and India is the major supplier in this category.
Though Rice is cultivated largely in Asia its export mostly originates from other continents. Major rice exporters are Thailand, United States, Pakistan, Vietnam, India, Italy, Uruguay, Australia, China and Argentina.
The Western countries are not major producers, but at the same time their consumption is negligible. Thus, a significant portion of their produce is exported.
2.3
INDIAN SCENARIO

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Rice is grown in many regions across India. For about 65% of the people living in India, rice is a staple food for them. Rice is essential to life in India. It is a part of nearly every meal, and it is grown on a majority of the rural farms. From a nation independent on food imports to feed its population, India today is self-sufficient in grain production and also has a substantial reserve. The progress made by agriculture in the last four decades has been one of the biggest success stories of free India.
Agriculture and allied activities constitute the single largest contributor to the gross domestic product, almost 33% of it. Agriculture is the means of livelihood of about twothirds of the work force in the country. The demand for rice in India is projected at 128 million tons for the year 2012 and will require a production level of 3000 kg/hectare. Government of India is targeting to achieve production of 129 million tons of rice by 2011- 2012 with the growth rate of 3.7% with other food grains.
India
is the second leading producer of the rice in the entire world,
preceded only by China.
Agriculture is the main source of income for families in India. Farms cover
over half the land and almost three-quarters of that land is used to grow the two major grains: rice and wheat. India's annual rice production is around 85-90 million tons. However, it fell to 73 million tons in 2002-03, due to poor monsoon performance. Annual consumption is around 85 million tons.

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India also annually produces around 6-10 Lakh tons of Basmati rice, more than 70% of which is exported.
In India Rice is cultivated in both seasons - Kharif (80-85%) and Rabi. Only in Southern India due to its tropical environment condition, it can be cultivated in Rabi season also.
West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Tamil Nadu, Bihar, Orissa, Assam, Karnataka and Haryana are the major producing states. More than 50% of total production comes from the first four states.
Food Corporation of India purchases around 20 to 25% of the total rice production in the country both under levy from the rice mills and directly in the form of paddy from the farmers at Minimum Support Prices announced by the Govt.
More than 4,000 varieties of rice are grown in India. However, government classifies rice into two categories: common (length to breadth ratio less than 2.5) and Grade A (length to breadth ratio more than 2.5).
Rice purchased by FCI is transported from surplus areas to deficit areas for distribution under PDS. In addition, movement is taken to deficit areas also for price stabilization through open sale.
India's basmati rice and non-basmati rice exports are valued at US $800 million per annum. SJCET School of Management

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India is the world's largest exporter of Basmati rice, selling about 6-7 lakh tons of the premium rice mostly to Saudi Arabia and other Middle East Countries, Europe, and the United States every year.
2.3.1
RICE EXPORT SCENARIO
India is one of the important countries in the world in export of rice. India's exports are expected to go up further during current financial year. Hence, Indian rice exports are set to reach second place in the world markets after Thailand edging out Vietnam in the process as per the report of the Food and Agricultural Organisation. Export of rice from India has been divided in to two category i.e., basmati rice and non-basmati rice.
Basmati Rice
Rice export from India constitutes the major share of Basmati rice. Nearly two-third of Basmati rice produced in India is exported. Basmati rice is the leading aromatic fine quality rice of the world trade and it fetches good export price in the international markets. Basmati rice being novel product is characterized by its unique grain size, aroma and cooking qualities. Being high value product, it has got good export demand. Hence, the export has been very high and exports have been steadily growing.
Basmati rice is a gift from "Mother Nature" to the Indian sub-continent and grows in the Indo-Gangatic plains only Gulf region remains the major markets for Indian basmati rice and inside Gulf, Saudi Arabia accounts for the major chunk of basmati imports from

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India. Pakistan is the sole competitor for India in the international market for basmati rice. Non-Basmati Rice
India is also exporting substantial quantity of non-basmati rice to various countries in the world. Non-Basmati rice is next to Basmati rice, which is exported from India to many countries in the world. The export value of non-basmati rice also contributes considerable share in the export earnings of total agricultural products However, the export of non-basmati rice has been fluctuating year to year due to weather conditions affecting the production of non-basmati rice in the importing countries.
Major destinations for India's non-basmati rice exports are Bangladesh, Australia, Bahrain, Ethiopia, Djibouti, France, Germany, U.K., Hong Kong, Korea, SriLanka, Maldives, Mauritius, Malaysia, Nigeria, Ivory coast, Indonesia, Nepal, Oman, Qatar, Russia, South Africa, Saudi Arabia, Somalia, Singapore, U.A.E. Y.A.R., etc. Competing countries in the international markets for India for the exports of non-basmati rice are Thailand, Vietnam, Burma, China, U.S.A. and Pakistan. Major quantity of nonbasmati rice is exported to Asia continent.
Rice is exported from India to many countries in the world. In fact, India is facing stiff competition in the international markets for the export of rice. Thailand is the world's largest rice exporting country. Vietnam is another large exporter of rice, but currently the demand for Vietnamese rice has steeply declined in the international market due to which India is likely to become world's second largest exporter of rice . Thailand, India and U.S.A. are the only countries making parboiled rice and exporting it. Thailand, Vietnam and India are also exporting 100% broken rice. Data in respect of parboiled and broken rice exports separately from India are not available.

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India has the potential to export one million tons of basmati rice.
Major destinations for Indian non-basmati, white/parboiled rice are Bangladesh, Indonesia, Philippines, Nigeria, South Africa, Ivory Coast, and other African countries.
Three years ago, Government of India subsidized exports of rice following a large build up in government held stocks three years ago, which reached a record 26.5 million tons on Nov. 1, 2002.
In January 2004, the Government announced that exporters would be allowed to procure food grains directly from the growers.
2.4
STATE SCENARIO
Rice is a vital food material for more than half of the worlds population, the
importance of which as a food crop has been increasing with increase in population. It is estimated that the rice requirement for Kerala is about 7500 tons per day whereas the production within the state is grossly inadequate to meet the requirement. The productivity of paddy in the State at the current level is sub optimal, meeting only 15% of the requirement, and the remaining 85% requirement is met from the neighboring states of Tamil Nadu, Andhra Pradesh and Karnataka. Modern Rice Mills are scientifically up-to-date units, with most modern plant and machinery. Rice produced in a Modern Mill would be of superior quality and thereby finding greater customer SJCET School of Management

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acceptance. Further, the bye-product of such Mills, Rice bran, could find great demand as raw material among solvent Extraction Plants.
Paddy cultivation was part of the proud culture of Kerala State .Rice is the most important cereal and staple food produced and consumed in Kerala. In Kerala you can see vast green paddy fields. Kuttanad is called as rice bowl of Kerala because of rice cultivation. According to the State Planning Board, Kerala lost over 500,000 hectares of paddy fields between 1980 and 2007. But due to serious intervention of Kerala government in the year 2010 , 15000 hectors of land kept fallow for 2-5 decades brought under cultivation ,paddy production increased by 1.25 lakh tones ,upland paddy cultivation started in another 1000 hectors. Kerala government has implemented novel schemes under food security programme for special rice production areas like Kole, Pokkali, Kuttanadu, Onattukara, Purakkad kari, kattampalli, Palakkad etc.
Paddy cultivated in almost all districts in Kerala. Rice production has experienced continuous decline in area over 2 decades. Rice production touched its of around 14 lakhs tons in the mid-seventies. Event at its peak level internal production was hardly sufficient to meet 50 % of states requirement. Consequent to the enormous pressure which high value crops like coconut, banana, pineapple and rubber have exerted area under paddy has declined from its peak coverage of 8.81 lakhs hectares in mid-seventies to 3050 lakhs hectares in 2003-04.
In the earlier days rice used to be cultivated almost in all parts of Kerala in three seasons .They were Mundakan ,Viruppu and puncha .In the present scenario it is difficult to do rice cultivation in the state due to high labour cost and shortage of labour Mechanized transplanting is attracting more and more paddy farmers in Kerala. By adopting good quality seedlings, adequate use of organic manure, integrated water and pest management Kerala farmers can increase rice yield and thereby profit from it. Also paddy fields are being converted into filled up land.

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Rice fields are slowly diminishing from Kerala, creating threat to food security of the State. For conversion of paddy fields, Kerala government had made law to stop filling the paddy fields for uses like construction and cultivation of cash crops like Rubber, Coconut tree etc. There has been an unprecedented hike in the price of rice over Kerala for the last three years. Price of rice in the open market reached Rs.27-30 per kg In 2011 January.
At present, the paddy milling capacity available in the State is about 3000-3500 Tons per day giving an output of only about 2000 Tons of rice per day, leaving a huge gap which is being met by Public Distribution System (PDS) and by import of paddy/ rice from other states. As per figures from Rice Mills Owners Association, there are about 125 rice mills operating in the State, out of which about 50% are modern sophisticated units with Whitener and Color Sorter machinery and others are partially modernized or upgraded from the traditional Rice Mills (by incorporating dryer systems). The remaining units are having a capacity to process only about 10 Tons of paddy per week. Rice Mills in Kerala are meeting only 20% of the States requirements and the balance is met by PDS and from other states. So the Demand Supply gap is huge and there is sufficient scope for more Rice Mills.

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CHAPTER 3 ORGANISATION PROFILE
3.1 COMPANY PROFILE

Mr. K.K Karnan started rice manufacturing business in a small way. In the beginning paddy was boiled in large copper vessel and was dried on mats before removing the husk in milling. Thus the rice was manufactured in traditional way in small quantities and sold locally. Later in 1976 a rice mill with small huller was SJCET School of Management

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installed and rice with better quality was introduced in the market of Kerala, but in small quantities. That was the beginning of Mr. K. K Karnans entry into the different markets of Kerala. Foreign Technology started to be introduced into rice manufacturing industries of India. First this technology was introduced into rice mills of Andrapradesh, Karnataka, Punjab and many other states. Mr. K. K Karnan was curious and learned more about this technology and was determined to make the benefit of new technology available to the people of Kerala. With this intention be introduced this foreign technology into his rice mill in the manufacturing process, in 1985. He was able to give his customer rice produced in the natural way without loosing its quality and without stones or any foreign matters in rice. His rice started to be sold in the market of Kerala with the brand name NIRAPARA. The entry of NIRAPARA rice in Kerala market becomes a success story as customers looking for quality started to prefer NIRAPARA. NIRAPARA become the market leader. In 1992 he imported computerized sortex machine and introduce it in the process line. The sorting process helped in sorting only the quality rice thus removing all black rice. Black rice is caused by the attack of insects to the paddy. This black rice used to cause stomach upsets. By using the sortex machine NIRAPARA is able to give the best rice to customers. Thus is how NIRAPARA silky sortex Rice came to the market. Not only good looking rice but also quality rice with all nutritious factors are given to the customers. NIRAPARA become a synonym for quality rice.
About the company

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Name and address
KKR Group of companies Okkal P.O, Kalady, Ernakulum Dist. Kerala 683 550 Website: www.nirapara.com
Registered office Established KKR Group of Companies
Okkal 1976 SN Rice Mills KKR Mills KKR Flour Mills KKR Agro Mills Pvt. Ltd. SN Agro Products SN Tile Works KKR Food Products Five Star Metals Pvt. Ltd. KKR Products and Marketing Pvt. Ltd. KKB Fencing Co. LLC, Dubai Bik-Maark International Marketin (P) Ltd. Lotus Rural Development Society Bik -Maark Builders & Realtors (P) Ltd
Promoters
K.K. Karnan Ammini Karnan Biju Karnan
Table 2 In 1993 with the firm intention of modernizing the manufacturing process, a new plant with par-boiling system was installed. This system helped in retaining all SJCET School of Management

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notorious factors in rice without losing them during the process. Thus he able to supply customers quality rice, which had all nutritious factors. The quality conscious people of Kerala encouraged him by purchasing more and more of Nirapara. He made it his goal that he will give quality rice to the customer. Care is taken and many quality control measures are introduced and complied with during the entire process from sourcing the paddy to reaching the quality rice to the customer. NIRAPARA rice and rice products are now available and sold not only in Kerala but also in other states of India. NIRAPARA rice products are exported to other foreign countries also. NIRAPARA rice products are prepared by retaining the nutritious factors of rice in traditional Kerala style of preparation. Only selected quality sorted rice which is full of factors that give taste are used in the preparation of these rice products. These rice products are used in the preparation of different Kerala snacks and dishes. Mr. K. K Karnan has his presence in the social, cultural and economic fields. He is a life member of CSA in Angamaly, which promote the arts and cultural traditions of Kerala. He is also the member of Janaseva in Alva which distributes midday meals for poor student and which conducts child homes for to take care of the orphans. He is involved in different social and welfare activities. Mr. K. K Karnan is the award winner of Akshya Puraskara for traditional industry in 2000, Treasurer of all Kerala rice mill owners Association and member of all Rice India Exporters Association. His wife Mrs. Ammini Karnan is looking after the manufacturing of rice products and is his history supported in his journey towards success. His son Biju Karnan who joined his father in this field after his MBA assists him. The factory of KKR mills is located in the green pollution free Okkal Township, near Kochi in Kerala in South India. The facility is equipped with the latest technology in the world for every aspect of processing of paddy- right from destining, cleaning, drying, bran-removal, polishing and finally sorting. This infrastructure of around 25crore of rupees in one of the largest in India.

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KKR mills are the only rice mill in south India to use the Z- sortex machine capable of optical inspection for quality control. This machine scans every grain of rice and removes discolored, broken and immature rice, ensuring that only rice that meets the specification calibrated in the computer is selected for packaging. The result-beautiful rice of even size, colour and bran that is a feast for the eyes and a wholesome meal. NIRAPARA- the brand name in which KKR mills markets rice is today the largest selling brand in Kerala and has become a household name. The KKR mill is now all set to become a name to reckon within food. The group has plans to set up a food park with facilities to process and manufacture a wide range of food products like spices, pickles and other products for world markets. KKR mills boasts of a state of the art plant with the highest level of technology in the world ensuring products that meet the stringent quality and hygienic standards.
3.2 COMPANY OBJECTIVES

The success of the company depends on the effective and well defined objectives. The companys performance and profit depends on these objectives. A company that has no objectives is like a ship without a captain. Objectives In General To stimulate Consumers to make purchase To introduce new product To encourage existing customers to buy more To be more competitive in the market To create more sales in off-season To Promote Export business To Introduce quality control technique for improving the quality of the product To Provide Service to society through Janaseva

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The Economic Objectives Profit Maximization Cost Minimization Production of goods Creating customers Innovations The Social Objectives Quality goods and services Reasonable price Provision of employment Utilization of resources properly Welfare of employees
3.3 VALUES OF THE COMPANY

High quality products Customer orientation Good relation between management, employees and workers. Certification ISO 22000-2005 certification ISO 9001-2000 Certification HACCP Certification (Hazard Analysis Critical Control Point)
Mission Statement

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The mission of the company is to deliver high quality food products that set themselves apart from others in taste and value. Vision Statement The KKR Group of companies has a great vision of becoming a leader of fast moving consumer goods and products. Its vision is to provide total customer satisfaction through continuous improvement in production process and services.
Production Plants
Production unit Place Product Production per month (Tons) KKR Mills Okkal Rice 500 70 Work force
SN Rice mills
Okkal
Rice
750
90
Karthika Mills
Kanjhoor
Rice
250
60
KKR Flour Mills
Okkal
Flours
750
280
KKR Agro Mills
Chelamattom
Rice
1500
90
KKR
Food Chelamattom Pro duc ts
Pickles and curry 150 and 80 pow der
350
Table 3

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3.4 ORGANISATION STRUCTURE
Chairman
Vice chairman
President
General Manager
Purchase Manager
Marketing Manager
Export Manager
Production Manager
Estate Manager
Accounts Manager
HRD Manager
Lotus rural developme nt Society
Purchase Assistants
Export Assistants
Milling
Weight Bridge Supervisor
Account officer
Project Manager
Store keeper
Supervisor
Cost Accountant
Territory Manager
Cash Area Sales Officer Sales Executive Paddy instructor

Maintenance in charge
Dept. Officer
Sales Officer

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Managing Partners take the strategic decisions about the company. These decisions have long term effects on the company. These decisions include expansion of the unit, technological changes, entering into the new market, introduction of new products etc. these decisions are taken with the consultation of the Managing Director and General Manager. Managing Director manages day today affairs. They take all the decisions in consultation with the General Manager and other managerial staffs. They lead the entire company towards attaining the goals and objectives of the company.
General Manager: He is reporting to the President. He is responsible for Personnel, Corporate Planning and all plant operations and engineering department. He is required to carry out short and long term planning, matching the future production prospects, achieving the targeted growth and profitability of the Company. The general manager acts as the connecting link between Managing Director and various other managerial staff. Every Department Managers have reported to the General Manger about the affairs in their respective department.
3.5 PRODUCT PROFILE
Nirapara Rice is available in a wide range of varieties that suit various tastes- brown rice and white rice in round- grained and long grained varieties. Besides these, there are specialty rice varieties for the varied traditional uses in Kitchen all over the world. Rice being the staple food from breakfast to dinner and dessert, Niraparas range of

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rice caters to every application of rice in the lives of the people especially of south India. Nirapara rice is the only rice processed using the nutri-select process which ensures that only best quality rice the optimum value of vitamin B is selected by the Z-sortex machine & packed. Nirapara rice comes in neat porous traditional jute bag that help air circulation that is essential to enhancing shelf life , keeping it fungus free.
Nirapara Rice Range Sl. No. 1 2 3 4 5 6 7 8 Name of the products Single Matta rice Rose Matta rice Payasam rice Ponni Rice Idly Rice Jyothi Rice Jaya Rice Cherumani Rice Table 4
Rice Flours
A wide range of exolic, traditional rice-based breakfast item are very popular even in modern homes. Gone are the days when women would painstaking powder and grind rice to make the better for breakfast item like idly, dosa, Appam etc. Today, Niraparas readymade rice powders have found a firm place in kitchen shelves across the world. Nirapara has rice flours suitable for a wide range of breakfast item. The various rice flour products are:-
Sl. No.
Name of the products

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1 2 3 4 5
Idly powder Appam Powder Dosa powder Chemba Puttu Powder Puttu Powder Table 5
Wheat Products
KKR mills also process and markets wheat products for household are under the brand name NIRAPARA. All Nirapara products carry with the assurance of quality.
Sl. No. 1 2
Name of the product Broken Wheat Rava Table 6
Wheat based traditional foods are also popular in Kerala. Broken Wheat is used to make nutritious wheat porridge; fine wheat is used to make a delicious breakfast item called upma which is popular in the southern state of India. Nirapara also has wheat flour which is used to make soft chappathis.
Pure Spices
KKR food product, a company set up in October 2002 is all set to bring out a wide range of food products into the market under the Nirapara brand umbrella. The

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first set of products to enter the market is spices and pickles under the brand name Nirapara Silky. Nirapara Silky spices powders are made from all over the country and processed and packed in a state-of-the-art facility that meets the highest standards of hygiene. The spices are available as both pure spices and ready mixes that are used to make the popular South Indian Curries.
Nirapara Silky Curry Powder Range Sl. No. 1 2 3 4 5 6 7 8 9 10 Name of the products Red Chilly Powder Coriander Powder Turmeric Powder Sambar Powder Rasam Powder Chicken Masala Fish Masala Meat Masala Curry Powder Pickle Powder Table 7
Pickles
Pickles are an important item in practically every Indian meal. Traditional pickle recipes using unique spices mixes and vegetables oils are made with a wide variety of vegetables. Nirapara Silky pickles are delicious and are the perfect appetizer in every meal. The pickles are made under the supervision of expert. Nirapara Silky Pickle Range are:-
Sl. No.
Name of the products

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Ginger Pickle Garlic Pickle Cut Mango Pickle Kadukumango Pickle Hot & Sweet Lime Pickle Hot Lime Pickle Gooseberry Pickle Bitter Gourd Pickle White Lime Pickle Mixed vegetable Pickle Wild Mango Pickle Tender Mango Pickle Irumbenpuli Pickle Tindora Pickle Loloica Coconut chutney Hot & Sweet Mango pickle Vadukapuli Lime (White) Pickle Vadukapuli Lime (Red) Pickle Table 8
3.6 Financial Performance of the Company

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Balance Sheet As At 31st March 2011 Particulars Source of funds: Shareholders' Fund: a) Share capital b) Reserves & Surplus- share Shareapplicatiojn Application c) Profit & Loss Account Loan funds: a) Secured Loans Sch No. As At 31st March 2011 As At 31st March 2010
1)
23214000 5000000 2826507 31040507
23214000 5000000 2734847 30948847
2)
158688808 0 158688808 2028789 191758104
148338099 0 148338099 2565245 181852191
3)
Deferred Tax Liability Total Application of Funds: 1) Fixed assets: a) Gross Block b) Depreciation 2) Investments 3) Current Assets, Loans & Advances: a) Inventories b) Sundry Debtors c) Cash & Other Current Assets Less: Current Liabilities & Provisions a) Current Liabilities & Provisions Net Current Assets
4 91609156 59563172 32045984 0 90028410 54154789 35873621 0
3 5 6
224392348 346158759 38847825 609398932 449686813 159712119
196392331 178794992 60577562 435764885 289786315 145978570
Total Significant accounting policies Notes on accounts 15 16
191758104
181852191
Table 9
Sales and Gross profit

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Year
Gross profit
Sales
2008-2009
20036522
407905222
2009-2010
18961483
429590976
2010-2011
45155431 Table 10
462568460
Current Asset and Fixed Asset Year 2008-2009 2009-2010 2010-2011 Current Asset 337575865 435764885 609398932 Table 11 Fixed Asset 36656972 35873621 32045984
Competitors
The following are the competitors of Nirapara. Double hourse Periyar Eastern Pavizham Gayathri

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Mariyas Saras Melam Anns curry powder Taste buds Priyom masala Aachi masala Sakthi masala Brahmins grandmas
AWARDS Best Business Man Award 2008 4th Rank for the Well-Known Brand Name- NIRAPARA CONTRIBUTION TO SOCIETY They give educational aid for poor school students The contributions to the society are providing employment.
3.7 Future Plans
The company has lined up plans to sell gingely oil, ready-to- eatproducts, food processed in honey in the current year. The main focus is to enter new domestic markets and European markets. There are also plans to introduce ayurvedic cosmetics and health-related products in the market. The company plans to set up a warehouse in Tamil Nadu for the storage of spices, a central dispatch warehouse in Kalady, and a coconut oil manufacturing plant for oil production.

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3.7.1 New Technology
The KKR group is all set to enter the food processing industry on a large scale, bringing in the worlds latest technology and machines in every new area of activity. Attention to purity and hygiene standards that meet the highest world requirement is the focus of the group.
3.7.2 New Product
The KKR group is looking at new venture in food processing and preserving with a large scale investment on a food technology park in over 12 acres of land located in a pollution free-environment friendly, green area. Besides spices, pickles, rice and wheat products the group has plans to manufacture an international product range like pasta, preserves, sauces, squashes, fruit-based foods, juices, coconut-based foods etc
3.7.3 New Market
Today the Nirapara group has entered the middle-East markets and has set its sights on markets like the Far-East, America and Europe. The day is not far before the KKR group makes a mark in foods in the international markets. long. And with the perseverance and commitment of the group it is indeed a dream that will come true before

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CHAPTER 4 DEPARTMENT DETAILS

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Communication Process and Methods
Communication is an essential part for the success of any organization. There is a very informal and direct communication in this company. It creates a positive feeling in the mind of the employees. They can use the extension phones and parallel connections for communication process. They provided loud speakers in every comer of the company for informing the messages to the employees. Communication among the workers is done with the help of Circulars, memos etc. Notice boards are kept in various departments.
Authority General Manager and other managerial personnel have authority in the concern. They can take decisions in consultation with their subordinates. Separate limits have been kept for each one of them. But they cannot take decisions, which involve a financial commitment of over one lakh without the consent of the MD. The superiors are also having authority to act on matters relating to the subordinates. Responsibility Everyone in the Organization has his own responsibility. The duties and responsibilities are given to each of the employees upon his appoint. It helps in deep involvement in the job. Managers head the departments. They are responsible and accountable for the working of their respective departments. They report to the General Manger. DEPARTMENT DETAILS
Departmentation is the process of grouping of various activities into separate unit or departments. A department is a distinct section of the business establishment concerned with a particular group of business activities of like nature. The actual number of departments in which a business house can be divided depends upon the

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size of establishment and its nature. Departments comprise a framework for an organization and enable it to expand indefinitely. Departmentation aims at:
i. Specialization of activities for efficient performance. ii. Simplifying task of management within a workable span. iii. Maintaining co-ordination and control of the various activities. The various advantages of departmentation can be summed up as: a. It increase the efficiency of the enterprise since various activities are grouped into workable units b. It renders the task of fixation of accountability for result very easy since activities are well defined and responsibilities are clearly laid c. It provides for fixation of standards for performance appraisal and thus, ensure effective control. d. It creates opportunity for the department heads to take initiative and thus develops managerial facilities.
4.1 PRODUCTION DEPARTMENT
Production department is deals with the process of producing Product. That means converting input into output. Materials are a very important factor of production. It includes physical commodities used to manufacture the final end product. Production is manufacturing. Manufacturing is understood to refer to the process of producing tangible goods whereas production includes creation of both tangible as well as intangible service.

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The KKR Group of companies operates their production in three places 2 rice mills and 1 flour mill is situated at Okkal 1 rice mill, curry powder & pickle division at Chelamattom 1 rice mills at Kanjhoor Functions of Production Department Evaluate and approve manufacturing equipment process, testing, and test equipment Establish points of inspection and test at a selected points in the production processes
Assure that purchased materials conforms to the requirement of purchase confirms to the requirements of purchase orders and specification Perform inspection and tests at selected points in the production process
Collect and analysis inspection and tests data and provide information on process and product quality levels Control the handling, preservation and packing of material and equipment from receipt through shipment of the final product.

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STRUCTURE OF PRODUCTION DEPARTMENT
President General Manager
Plant Manager
Production Manager
Paddy Inspector
Maintenance In charge
Milling Supervisor
Electrical In Charge
Packing Parboiling Operators Milling Operators Boiling Operators
Electricia Bran Packing & Loading Husk Packing & Loading

Paddy Loading & Loading
Mechanic s Sortex Operators Packing Section Rice Packing Plant Operators Figure 2
Helpers

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RESPONSABILITIES OF KEY PERSONALS

Responsibilities of production manager
Plan production of rice as per the target allotted for the month. Ensure early, monthly, paid daily planning of production Check and verify the process sheet o Parboiling and drying process sheet. o Log book of boiler section o Milling process sheet o Sortex section process sheet o Packing register o Mechanical maintenance register o Electrical maintenance register o Final products stock register o Good received register o Good return register

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o Packing materials register Inform the Manager regarding the stock of by-product and other item Ensure goods control over skilled and unskilled labours Prepare weekly wage list and ensure disbursement of weekly wage by the cashier Ensure that an approved list of schedule of wages is available as and when changes takes place Prepare a monthly salary statement and hand over to the account department. Maintain the attendance register for production staff Ensure leave sanction of all employees and one copy of leave application is forwarded to HR dept. Ensure that the effluent treatment plant log book is properly maintained by operators Ensure that the pollution control norms are properly informed Ensure timely water disposal from the mill Conduct daily stand up meeting Conduct monthly meeting & record the minutes
Responsibilities of Paddy inspector

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Inspect paddy when load arrives Keep the godown and surrounding area clean and tidy Collect excess husk in gunny bags and store properly in the available allotted space near the drier of sale Supervise loading and unloading of paddy Timely loading of paddy into cutting task
Responsibilities of Mechanic Ensure maintenance of all mechanical equipment Maintain a register of schedule of maintenance Maintain a register for oiling and greasing Maintain a register of repairs Maintain minimum stock register of fast moving spares Maintain all spares in a locker or spares room
Responsibilities of milling supervisor Supervise the milling operators duties Ensure all out sourced products are checked, packed, stocked correctly Ensure that all out sourced items are received at the respective godown Inform export department regarding the position of the order well in
advance
Oversees duties of packing and dispatch supervisors

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Ensure good house keeping
Responsibilities of Electrician Ensure that the electrical equipment are in working order at all times Maintain a list of all electrical equipment in the mill including the transformer & generator Check oil level of transform and ensure timely maintenance Ensure proper maintenance of generator and air compressor Maintain register of repairs carried out for all equipment separately
Responsibilities of dispatch supervisor Check the quality of rice before packing Exercise control over the packing section Maintain the stock in packing material register Maintain the stock position register Supervise the loading Ensure sufficient stock of bags, tags and twine Ensure Proper stacking of packed products Ensure good house keeping Supervise all operations of milling Maintain good return register
Responsibilities of parboiling operator

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Control and ensure loading of cutting tank by paddy inspector Ensure proper pre-cleaning of paddy and check working of all machines Ensure that the greasing and oiling of pre-cleaner and drier etc and properly exercised out in time Check all parameters of soaking, boiling, and drying Check the moisture of paddy after drying Ensure batch wise storage of paddy in bins Maintain the process sheet and enter the details Operate raw-cleaning, parboiling and drying section.
Responsibilities of milling operator Check the type of paddy Check the variety of paddy whether single or double, new or old paddy Ensure intake bin numbers are recorded Ensure the batch number is obtained from parboiling section Record the shift timing Check the chaff valuable from the outlet and record weights Check the coarse impurities Check the weight of tips for sale Check the weight of broken for sale Record the number of tonnage Record the productive hours Record the reason for the loss of productive hours

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Responsibilities of Sortex operator Check the type of rice and variety Check the moisture level of rice Check whether the rice received is suitable for sorting Record the intake bin numbers for KKR mills Check the discolourisation of rice within limits Inform the production manager if the weight of black rice is above the
laid down
permissible limit time of the rooms oiling Carry out sample weighting of packed rise from time to time Ensure cleaning and maintenance of conveyors and timely greasing and Carry out timely cleaning of ejectors, sortex machine and general cleaning Record the final storage bin numbers for KKR mills Check the final moisture level are within limit Carry out preventive maintenance and cleaning of machine from time to

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PRODUCTION PROCESS FLOW CHART
START
RAW-PADDY CLEANER
RAW PADDY DESTONER
RAW PADDY SOAKING
RAW PADDY BOILING
RAW PADDY DRYING
PRE CLEAN DRIED PADDY
DESTONING
HUSK SEPARATION
Milling Operator
PADDY SEPARATION
CONE POLISHING TO REMOVE BRAN
WET POLISHING TO REMOVE BALANCE BRAN
DESTONER

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BROKEN RICE SEPARATOR
SORTEX BIN
SORTEX MACHINE STONER RICE BIN
Sortex Operator
PACKING
STARKING
DESPATCH
STOP
Figure 3
4.2 PURCHASE DEPARTMENT
The purchase department plays a very important role in an organization because purchasing has its effect on every vital factor concerning the manufacture, quality,

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cost, efficiency and prompt delivery of goods to customers. Its function is to procure materials, supplies, services, machines and tools at the most favorable terms consistent with maintaining the desired standard quality. Purchasing is the most important function of materials management as the moment an order is placed for the purchase of materials, a substantial part of the companys finance is committed which affect cash flow position of the company. The purchase system is centralized in Nirapara. Centralized purchase department means that all the purchase function are routed through one department. This means all purchases should made by the purchase department to avoid duplication, overlapping and non-uniform procurements. Purchasing is the most important function of materials management. As the moment an order is placed for the purchase of materials, a substantial part of the companys finance is committed which affect cash flow position of the company.
Purchasing will be Seasonal purchases- it includes the purchase of paddy, lemon chilly, turmeric etc. purchasing will be mainly from open markets and also through agents. Paddy is mainly purchased from Karnataka, Palghat, Alappey, Tamil Nadu etc. Daily purchase- it includes machine parts, office materials and other materials for the day to day needs. Objectives of purchase department
To make continuous availability of materials so that there may be uninterrupted flow of materials for production
To make purchase competitively and wisely at the most economical prices To make purchases in reasonable quantities to keep investment in materials at minimum

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To purchase proper quality of materials to have minimum possible wastage of material & loss in production
To develop good supplier relationship which will ensure the best terms of supply of materials
To adopt the most advantageous method of purchase to ensure smooth delivery of materials from suppliers
To serve as an information centre on the materials knowledge relating to prices, sources of supply, specification, mode of delivery etc..
Functions of a purchase Department What to Purchase? When to Purchase? Where to Purchase? How much to purchase? At what price to Purchase? To perform these functions effectively, purchase department follows the following procedure Receiving the purchase requisitions Exploring the sources of supply and choosing the supplier Preparation and execution of purchase order Receiving and inspecting material Checking and passing of bills for payment 1. Purchase Requisition or indenting for materials

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The purchase officer does not initiate any action for the purchase of materials on his own accord. With the help of the purchase requisition, the purchase officer comes to know the type of materials needed in the organization. A purchase requisition is a form used as a formal request to the purchasing department to purchase materials. This form is prepared by the storekeeper for regular items.
The requisition is approved by an executive, such as the plant superintendent or work manager. The purchase requisition is generally prepared in triplicate. The original copy is sent to the purchase department, the duplicate is kept by the storekeeper or the department which initiatesOF the COMPANIES requisition and the triplicate is sent to the KKR GROUP authorizing executives. PURCHASE REQUISITION Regular Date. Specimen form of purchase Requisition Date by which Special Materials are required
NO..
Serial No
Description articles
of
Stores code No
Quality required
Remarks
Requested by. For use in the purchase Dept. Approved by Quotation invited on.

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Form 1
Table 12
2. Exploring the sources of supply and choosing the supplier
A source of supply of materials must be selected after the receipt of the purchase requisition. The purchase department usually maintains for every group of materials a list of the suppliers names and address. Quotations may be invited from these suppliers by issuing tender to them. While selecting the supplier to whom orders are to be given for the purchase of materials, the purchase department should kept in mind:
Manufacturing capacities Reliability of supplier Financial condition of the supplier The management of the supplying firm Terms of payment Terms of delivery Price quoted

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3. Purchasing order
After choosing the supplier, the purchase department prepares a purchase order for the supply of stores. The order is the written authorization to the supplier to supply the particular material or materials. It is the evidence of the contract between the buyer and the supplier that binds both the buyer and the supplier to the terms which the order is placed. If five copies are prepared, the possible use may be as follows:
The original copy is sent to the supplier SWADESHI COMPANY LTD One copy is sent to the receiving department PURCHASE ORDER One copy is sent to the person who initiated the purchase requisition No. Dated Purchase One copy is sent to the accounting department No.. To(Suppliers)
Requisition
The last copy is retained by the purchase department for future references
Your quotation number.dated..has been accepted. Please
Specimen form of Purchase Order
supply the following items of stores in accordance with the instructions mentioned therein and terms and conditions listed on the reverse of the purchase order. Serial No n Descriptio Quantity Rate Total cost Delivery rate ks Remar
Terms of Delivery Terms of Payment Packing and dispatch Instruction Discount Allowed Purchase Officer SJCET School of Management

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Form 2 4. Receiving & Inspecting Materials In large concerns, a separate Receipt and Inspection Department independent of stocking locations should be set up to receive and inspect materials. But in small concerns, the work of receiving the goods may be entrusted to the storekeeper. On completion of the inspection, the goods receiving clerk should enter details of materials received in store or Good Received Note. Five copies of the note should be prepared. One copy will be kept by the Receiving Department and four copies along with the Table 13 Materials will be sent to the storekeeper. He will again check the quantity of materials and compare it with (GOODS) quantity given RECEIVED on the note. OneNOTE copy will be kept by the STORES storekeeper for Name his record Suppliers and the other three copies will be sent to the following departments: Serial
No No. Purchase Order No. Date
The purchasing Department

Date Amount Remark
The AccountsCode Department Descripti Quantit
on The Department No Which yinitiated the requisition
Specimen form of Goods Received Note

Received by. Inspected by Storekeeper Costed by. Stores Ledger Posted by

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Table 14
5. Checking & Passing of Bill for payment
When the invoice is received from the supplier, it is sent to the stores accounting section to check both the authenticity as well as the arithmetical accuracy. The quantity and price mentioned in the invoice are checked with reference to stores received note and the purchase order respectively. The arithmetical accuracy is also checked and verified.
Internal checks as regards purchase KKR mills adopt certain internal checks regarding purchase. They are: There should be separate department for arranging for all purchase Check whether purchase requisition showing correct quantity, quality and time by which the goods are required

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Accept best suitable tenders Stores department should prepare good received note Invoice clerk check the details of invoice Accounts department should compare the invoice with the purchase order Examine the Debit notes and see that they are properly entered in the purchase return book Internal checks as regards Stores Stores is located at convenient place On receipts of goods , they should be properly recorded by the stores keeper on Good Received Note Each item in the store should bear a reference number The system of Bin card is used to show the receipt, issues and balances of the stores. Stock taking is conducted at regular intervals Requisition slip is prepared Stores accounting should be assigned to a separate department Responsibilities of purchase Manager Check whether there is continuous availability of material Provide better control on purchasing Process Check Purchase Requisition or indenting of materials Select suitable Supplier based on terms and Conditions Preparation of Purchase order for the supply of stores Receiving & Inspecting Materials Checking & Passing of bills for payment. Responsibilities of Storekeeper

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All manufacturing concerns appoint a person known as the storekeeper. Chief store superintendent who is in charge of the stores department and is responsible for stores control. The storekeeper should have technical knowledge and wide experience in stores routine and ability if organizing the operations of stores.
Receiving the stores correctly Entering all receipts regularly in the Bin Cards Keeping every item of stores in its allotted bin. Ensuring that materials are issued only to those who present a duly signed Requisition Note Ensuring that the stocks do not exceed the maximum level nor go below the minimum level at any time Maintaining and supervising the duties of the different members of staff under his charge Preventing unauthorized persons from entering into the stores Maintain stores in an orderly and tidy manner so as to facilitate easy handling & Physical verification of stores & Prevention of loss in storage Carrying out a regular review of the item of stores in hand for locating slowmoving and non-moving items so that steps may be taken for their disposal before they became obsolete
STRUCTURE OF PURCHASE DEPARTMENT
Chairman
Vice Chairman President
Purchase Helpers Asst. 1
General Manager Purchase Helpers Manager Asst. 2
SJCET School of Management Purchase Helpers Asst. 3

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Store Keeper ] Figure 4
4.3 ACCOUNTS DEPARTMENT
Accounting is a language of business. The basic function of accounting is communicating the result of the business operations to various parties who are interested in it. Accounting department deals with recording, classifying, and summarizing of business transactions which are of a financial character and are expressed in terms of money.

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The staff and officers working in various accounting section of the division shall carry out their work effectively and efficiently as per the guidelines. There should be close coordination and exchange of information between the accounting sections of the division to ensure uniformity in the accounting transaction, also the head of the various accounting section will maintain close coordination with other department.
The following are the advantages of accounting: Helps in ascertaining financial position of the business Systematic recording to data is possible Possible quantitative information Act as an information system Beneficial to different interested users of accounting information
The companies Act of 1956 lay down certain principles regarding accounting of the company. Every company of India has to keep an accounts department to maintain the correct and adequate accounts of the company. Accounts Department usually is a part of financial operators of the company.
Needs of accounting systems are: To ascertain the result of operation i.e. profit or loss To ascertain the financial position of the business i.e. solvency To provide control the assets and liabilities of the company To provide information to tax authorities like sales tax, income tax, central excise etc.
Accounting Policies
1. Financial Statement

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i.
The financial Statement has been prepared under the historical cost convention,
in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the company ii. The company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis 2. Fixed Assets and Depreciation i. ii. Fixed Asset are stated at historical cost, less accumulated depreciation Depreciation has been charged on written down value method at the rates
prescribed under schedule XIV of the Companies Act, 1956 3. Inventory Inventory is valued at cost or net realizable value, whichever is less 4. Revenue Recognition and Expenditure Items of Income and Expenditure are generally accounted for on accrual basis unless otherwise stated.
5. Sundry Debtors Sundry Debtors are considering good for which the company hold no security other than the personal security of the debtors.
6. Accounting Standard The Accounting Standard prescribed by the Institute of Charted Accountant of India has been compiled with wherever applicable.
7. Retirement Benefit

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The companys obligation for retirement benefits to employees cannot be reasonably estimated. Hence no provision for the retirement benefits payable has been made and the same will be accounted on pay-as-you-go basis.
8. Provision for Deferred Tax
Deferred Tax resulting from timing difference between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.
Responsibilities of Accounts Manager

Manage all accounts and cost work Checking the work done by the book keeper so as to ensure that all financial transaction are correctly recorded Effective cash management Preparing trail balance Passing adjusting & rectifying entries Preparing trading, Profit and Loss Account and Balance Sheet Designing Suitable accounting system to protect the business asset from improper use Keeping accounting Records to comply with legal requirement under Income Tax Act, Sales Tax Act, Company Laws etc Stock verification Product Pricing
Responsibilities of cost accountant

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Ascertain the cost per unit of the different product manufactured by a business concern Provide a correct analysis of cost both by process or operations and by different element of cost Ascertain the profitability of each product and advise management as to how these profit can be maximize Helps in preparation of budget & implementation of budgetary control Advice management on future expansion of policies and proposed capital project Organize the internal audit system to ensure effective working of different department Organize the cost managers Guide management in the formulation and implementation of incentives bonus plan based on productivity & Cost savings Supply useful data to management for taking various financial decision Helps in supervising the working of punched card accounting or data processing through computers Exercise effective control of stock of raw materials, work-in-progress, consumable stores and finished goods in Order to minimize the capital locked up in these stocks. reduction programmes with the help of different department
Responsibilities of Cashier
Receipt and payment of cash As soon as cash received it should be entered in a rough cash book or dairy. The receipt numbers should be recorded for the respective entries made therein All mail remittance should be opened by the cashier All receipt of cash and or cheque should be banked daily Bank reconciliation statement should be prepared periodically by the cashier to reconcile bank and cash balance Proper voucher should be insisted for all petty cash expenses

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STRUCTURE OF ACCOUNTS DEPARTMENT
Chairman
General Manager Accounts Manager
Cashier
Accounts Officer Clerk
Cost Accountant
Data Entry Operators Figure 5
4.4 MARKETING DEPARTMENT

Todays successful companies share along focus and a hearty commitment to marketing. Modern marketing seeks to attract new customers by promoting

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superior value and to keep current customers by delivering satisfaction. Sound marketing is critical to the success of all organization... But marketing combines many achievesmarketing research, product, department, distribution, pricing, advertisement. Personal selling, marketing strategy and others-designed to sense, serve and satisfy consumers needs while meeting the organization goals. The marketing concept was born out of the awareness that a business to start with the determination of consumer wants and end with the satisfaction of those wants.
The term marketing concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organizational should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.
The ultimate purpose of production is the satisfaction of human wants. Production of goods has no meaning unless they are distributed to customers. The goods should be transferred to customers at a time when they need them. Thus marketing department makes goods more useful to the society by getting them where they wanted and by supplying them to those people who want them. The KKR Group of companies markets a number of diversified brands of products in the competitive market. Eh marketing department works as a separate company with in the business enterprise and deals with all the sales and marketing related activities.
The word marketing is a common word in every days life. It has a major role in a manufacturing organization. Marketing is the distinguishing unique function of the business. The main objectives of marketing goods and services are to satisfy the customers. This department is considered as the assets of the company. Marketing managers are often responsible for influencing the level, timing and composition of customers demand in a manner that will achieve the company objectives.

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The word marketing is a comprehensive term and the success of every company lies in the marketing activities. Marketing manager shall give emphasis up on delivering customer satisfaction through real consumer concern and profit will increase only through effective marketing. Marketing management is an ongoing process under dynamic marketing environment. The force operating in the marketing system and the philosophy and objectives of the organization will influence the marketing management.
Marketing zones South zone Idukki Kottayam Trivandrum Pathanamthitta Kollam Central zone Ernakulam Alappuzha North zone Kannur Palakkad Trissur Kasaragod Calicut Malabar
Table 15 Responsibilities of Sales and Marketing Manager Give Orders & instruction to Sales Executives Conduct Market Analysis Give Promotion technique including Advertisement, Direct selling, Public relation Solve complaints of customers by introducing quality products Prepare details of shops and quantity of sales Check whether there is any pending in product supply Responsibilities of Sales Executives Collect orders from different shops Fix the drivers root for sale Identify complaints of consumers Give information about consumers and shopkeepers

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Inform about market which has more sale Policies and Programmes Modern business is regarded as an integral component of the society. In todays world, society is expecting much more from business than in the past. Modern business must demonstrate social awareness, sensitivity and social performance. The manager should consider the effect of their decision up on all stake holders who are interested in the enterprise directly or indirectly and who may be adversely affected by these corporate decisions.
Distributors The KKR Group of companies has a large number of distributors in Kerala, major cities in India and abroad, UAE, Muscat, Bahrain, Oman, qat6ar, Kuwait, USA, Canada, UK, Switzerland, France, Australia, New Zealand, Singapore etc. it selects the distributors in those places where Keralites are located. Considering the increasing demand they have plans to increase the number of distributors. The communication between the general manager, area sales managers, sales representatives and distributors is through telephones and internet.
Distribution channel The varied products are supplied to all the retail outlets all over Kerala. Direct marketing system is followed to move the products from the manufacturer to retailer and then to customer. The company is also having a small outlet for the sales of the products.
COMPANY
DISTRIBUTORS

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WHOLE SALERS AND RETAILERS CONSUMERS Figure 6
The main dealers include the supermarkets, wholesale institutional buyers (they are the catering people who run the hotels and restaurants), grocery shops, pan shops etc. the length of the channel is one level channel which contains one selling intermediaries as retailers. This is used by manufacturers for marketing fashion merchandise. It requires knowing the latest trends and taste of consumers.
Reason for selecting direct selling Shortest and time saving method Saving of middle men profit Personal touch with customers Direct touch with markets Transportation From the company the products are transferred to depots. From the Depots to the agencies the products are sent on contract vehicles. Then this agency does the distribution to one their private vehicle.
STRUCTURE OF MARKETING DEPARTMENT

Chairman
South Asst. Sales Production Executive
Vice Chairman Production President CoCoordinator Manager
SJCET School of Management North Asst. Sales Production Executive

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Figure 7
ADVERTISING AND PRICING
Advertising is the process through which the consumers are getting information about the product. IT persuades the consumers to buy the product. It increases the sales and helps in creating a brand name and consumer loyalty.
Advertisement may be: i. ii. Informative or competitive Product oriented or company oriented

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While informative advertisement given information about the product, competitive advertisement tries to put down the competitors products. Similarly, the product alone, whereas the company oriented advertisement focuses on the whole products of the company or the company as a whole. Crypts spent a large amount on advertisement. The advertisement efforts can be channelized as follows:
Wall painting Boarding and boards TV\Radio\Newspaper Side panels on KSRTC Buses MARKET SEGMENTATION
Once the market has been identified, it becomes easy for an organization to make a product satisfies customers and differ from those of competitors. The market segmentation is the strategy that subdivides the largest market in to subgroups of consumers with definable, distinct and differentiated marketing programmes for each subgroup in order to enhance satisfaction to consumers and profit to the marketer. Marketing concentrates on this group. Any products at its introduction stage bring only a low profit due to the expenses in sales promotion. Similarly to capture the market a lot of changes can be done to the existing product, like changes in shape cover, taste etc.
PRICING The pricing depends upon many factors such as: i. Competitors price ii. Cost of production iii. Buying pattern of the consumers iv. Distribution channel Some products of the company get a high profit while others get a less amount of profit only. Even then for the existence in the market and to push up the sales of other products, the company continues to sell those products also in the market.

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4.5 PERSONNEL DEPARTMENT
This Department involves specialized knowledge and approaches that allow more emphasis on human resources and its proper selection, training and development. Personnel Management is the management of people employed. Personnel Management involves plans, policies and procedures for operative position. It is concerned with human resource management in the organization. The main function of this department is to make optimum utilization of human resources and also to provide proper satisfaction to employees. Management is an art of creating an environment in which people can perform and individuals could co-operate towards attaining group goals.
The development of the organization can be achieved through the development of the people of the organization. So we can say that workers are the back bones of the organization. The impressive level of productivity is a hallmark of KKR Group of companies and today the company have highly committed and disciplined workforce which leads a high degree of productivity with impressive levels of quality. The company gives importance for employee welfare and individual development of them. The organization promotes the concept of participative management, especially in quality circle, employ suggestion schemes etc.
Responsibilities and Authorities Human resource recruitment, planning and coordination Coordination of activities pertaining to selection, training, motivation and performance appraisal Maintaining personnel records pertaining to all grades in respect of factory. Generating awareness on safety. Monitoring compliance of safety by personnel

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Payroll Management Training Identifying trading needs Coordinating training activity Maintaining training records Selection of external trainers and training organization FUNCTIONS OF PERSONNEL DEPARTMENT
The major activities of human resource manager includes performance appraisal, employee welfare, disciplinary proceedings, etc. one of the peculiarity of Nirapara group is the legal issues are also carried out by human resource manager.
Recruitment and selection of staffs Estimating manpower needs Training and development Promotion and transfer Remuneration Performance appraisal Financial and non-financial incentives Employing most suitable persons Keep pace with new development Maximum utilization of manpower Ensuring job satisfaction Placement of manpower
Management workers relationship SJCET School of Management

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The management having a view that the success of the company depends very much on the healthy relationship between the management and staff, the secret of the success of any depends upon that. The management encouragement encourages employee participation in the overall activities of the company. The management of KKR Group of companies has a good relationship with the workers so there is no trade union in the company. Recruitment and selection The companys recruitment services include both internal and external sources. It does not allow outside agencies to do the recruitment for the company. Department present their manpower requirement on a statement from which includes the manpower needs, the type of personal required etc. The personal department, then, prepares a list and let the MD approve it. The application received from various candidates with reference to the advertisement in newspaper is thoroughly examined and qualified applicants are selected for interview. Recruitment is mainly done through advertisements in the newspapers, reference from employees and also from consultancies. Thus a short list of applicants is made, and the company calls for a general interview. The preliminary interview is conducted by the HR manager and if satisfied, a second round interview is conducted by the chairman and vice chairman of the company. If they are satisfied appointment is made. The HR manager gives a general introduction about the company. During the probation period the performance of the candidates is assessed. If the performance is satisfactory he/she will appointed as the permanent employee. Loading and unloading employees are mainly hired from Orissa and Bihar through registered labor agents. Training and development
The Department head identifies the employees who need training and sends a list to the HRD manager. Various seminars, refreshment classes and training programs are arranged for the employees as and when needed. The personal department

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prepares training calendars and identification forms are circulated to different department. Feedback forms are given to the trainee to gauge the effect of training programs. Retraining is given to the employees whose feedback is not up to the mark. On-the-job training is commonly practiced in the company.
The HRD Department is responsible for: o Raising monthly in-house training schedule o Propose external training o Submitting of returns/ document with reference to PF, ESI, Factories Act, Local Government, Authorities etc. o Enforcing Discipline Performance appraisal People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of employees are necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. The most common performance appraisal method is rating method. Appraisal report is forwarded to the HR manager by each department head. The employees are given salary increment on the basis of the performance.
Employee Category Permanent Employees Probationary Temporary Employees Trainees Apprentices

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Bonus KKR group provide bonus to its employees to motivate them. The profit of the concern was increasing every year due to the devoted hard work of employees. Attendance system Biometric attendance machine for office staffs Normal attendances register for workers Leave Casual leave Earned leave Permanent employees get 15 days casual in a year and trainees get 12 days casual leave. According to the industrial Law every employees has an earned leave of one day for 20 days work i.e. 12 days in a year. Time office KKR group adopt facility for the entry and exit of the employees. The 24 hours working factory provides shift facility to the workers. Time of working in: 9 AM to 5 PM 5 PM to 1 AM 1 AM to 9 AM
A committee consist of seven members, representing every department evaluate the safety measures for the welfare of the workers. They discuss the matter once in a month and take necessary steps for the maintenance and implementation of safety measures.

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Allowances and Benefits
All the workers are paid salary and fringe benefits which includes gratuity, bonus, housing allowances, subsidized food and canteen facility. Non-financial incentives like free uniforms and washing allowances are provided to workers.
Transfers and Promotion
The management by the order from the Managing Director is authorized to transfer any employee and he has to join the new job within three days. For this promotion, length of service or experience with not be taken into consideration, it follows a performance based promotion system.
Grievance Handling
A grievance in any dissatisfaction exposed or not whether valid or not arising out of everything connected with the company, which an employee thinks, believes or even feel to be unfair in the company. If workers have any problem they can immediately report to the supervisor. If supervisor cant solve at this level they can directly report to manager or in the organization there in a grievance handling.
Welfare Measures
Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures may not be in monetary terms only but in any kind or form. Welfare activities like canteen, Dispensary, welfare fund (formed by employees and governed by elected body of employees with direct monitoring of HR department)

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Employees co-operative society(With assistance of district bank and provides loan facilities) Library and reading rooms ( for employees issued for reference and not to be taken home ) Recreation club (Organize the factory day in April and conduct Reading room facilities) Personal Accident Insurance scheme(of Rs. 50,000-in ties up with GIC. Rest room and lockers are provided for the employees. Employee welfare activities in KKR Group of companies includes Accident insurance Lodging facility Transportation facility Canteen facility Internal checks as regards wage Personnel Department is responsible for wage payment. Salary of the office staff consist of basic pay and HRA. For marketing staff, a certain percentage of the sales turnover is given as commission. The workers are paid according to scale. It consists of basic pay, fixed DA and variable DA. They also provide provident fund, contribution towards pension fund, bonus and gratuity. The workers are also providing with ESI benefits. Company follows some internal check related to wages. They are: 1. Maintenance of wage records Wage records includes Attendance record (time recording clock, Use of tokens, Attendance card), Piece work records, Overtime Records, Pass-out records. 2. Preparation of wage sheet The procedure of preparing the wage sheet should be clearly established to minimize the chances of irregularities in wage payment. 3. Payment of wages The following procedure may be adopted to avoid irregularity in wage payment.

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The disbursement of wages should be done by a person not connected with the preparation of wage sheet One cheque is drawn for the entire amount of wages to be paid A list of unpaid wages should be prepared by the cashier Payment to casual workers should be done in the presence of responsible official Surprise visit is done by a senior official at the time of disbursement of wages. Wages-salary administration Salary of the office staff consist of basic pay and HRA. Salary increment is made on performance basis. For marketing staff, a certain percentage of the sales turnover is given as commission. The workers are paid according to scale. It consists of basic pay, fixed DA and variable DA. They also provide provident fund, contribution towards bonus and gratuity. The workers are also providing with ESI benefits.
4.6 FINANCE DEPARTMENT

Finance is a life-blood of a business. The operations of the business cannot be carried on without adequate financial resources. So it is essential for a firm to ensure the availability of funds when it is required. Finance is concerned with acquisition and utilization of capital in meeting the financial needs and the overall objective of a business enterprise. Management of finance is broadly concerned with acquisition and use of funds by business firm. Financial management is the job finance department. Niraparas
financial Department is headed by General Manager. Financial analysis is helpful in assessing the financial position and profitability of a concern. This is done through comparison by ratios for the same concern over a period of years; or for one concern against another; or for concern against the industry as a whole: or for one department of a concern against other departments of a same concern

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The objectives of analysis of financial statement are to assess: The present & future earning capacity or profitability of a concern The operational efficiency of the concern as a whole and of its various parts or departments The short term and long term solvency of the concern for the benefits of the debenture holder and trade creditors The financial stability of a business concern The real meaning and significance of financial data Long term liquidity of its funds Significance of Business Finance i. Purchase of fixed asset such as land, building, plant, machinery etc.. ii. Meeting the cost of current assets such as sundry debtors, bills receivable, inventory etc.. iii. Meeting the cost of promotion iv. Cost of establishing the business v. Cost of financing such as brokerage, underwriting commission etc. vi. Purchase of intangible assets such as goodwill, patent, copyright etc vii. Expansion, growth and modernization of business
Functions Of Financial Department By producing an accurate portrayal of the potential of the profits and cost of each title the finance department aids all departments in making the best financial decisions. The department is charged with the following task:
Forecasting, Budgeting and strategic planning Accurately projecting the companies financial performance SJCET School of Management

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Controlling cost through internal auditing Developing business plans and models for the growth of the company. The finance manager, who is the head of the department, provides various financial information for taking decisions. All other employees concerned are responsible to him. He is entrusted with the duty to look into the insurance and other funds generating formalities. Working capital management is another main function of the department. .The main functions of financial departments are: Obtaining finance Financial accounting Banking relationship Internal audit Cash management Taxation Management of accounting and control Preparation of financial reports Payment collection of all departments Expenses analysis Funds management Evaluation of group finance Acquisition of funds Determining the source of funds Effective use of resources Planning of resources Controlling of resources

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Responsibilities of finance manager Cash arrangement in a schedule wise Maintain credit for distributors Immediate draft and cheque are provided as per the requirements Day to day company expenses are maintained Yearly return, sales return, auditing ISO auditing will be made in every six months
Structure of Finance Department

Chairman
General Manager
Accounts Manager
Cashier
Accounts Officer
Cost Accountant
Clerk
Bank
Data Entry SJCET School of Management

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Figure 8
CHAPTER 5 SWOT ANALYSIS

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5.1
SWOT ANALYSIS
SStrength W...Weakness O....Opportunities T.Threats
SWOT Analysis is a comparison of strength, weakness, opportunity and threat. The central purpose is to identify the strategies that will create a firm specific business model that will best align fit or match companys resources and capabilities to the demands of the environment in which it operates. Once we became aware of the threats and opportunities in the external environment and the strength and weakness in the internal environment of the Organisation a comprehensive analysis of these elements assist Organisation in relationship to its environment. This comprehensive analysis is known as SWOT analysis. STRENGTHS Brand name of the company A Young And Dynamic Team of professionally qualified personnel at all levels of management

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ISO certified company Wide net work exclusive agencies Modern manufacturing facilities Efficient network marketing Efficient management and man power Good government support A good reputation in the industry No trade union Good infrastructure facilities
WEAKNESS High cost of production Accumulation of dealership in some areas Scarcity of raw material High competition Less market share Raw materials is imported from the states like Tamil Nadu, Andra Pradesh, and Karnataka etc. so transportation cost is very high Absence of long term policy for the sale
OPPORTUNITIES FMCGS are gaining demand in the markets It can easily keep its reach beyond seven areas and can be globally accepted

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Improvement in market penetration Good scope for new products like food supplements. Expansion of production capacity Introduction of product varieties and improved promotional efforts through Audio-visual media
THREATS Tough competition in the market High cost of production Competition from other firms Extinction of paddy cultivation in Kerala Increasing raw materials prices Extended network of multinational companies with improved technology and attractive packaging Scarcity of raw materials
5.2
OBSERVATIONS AND SUGGESTIONS
OBSERVATIONS
The companys goodwill is high among the customers. The company owns a store for selling their products. The company is maintaining consistency in quality. Dedicated Employees are seen in all departments. SJCET School of Management

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after decrease. workers
Inventory Turn Over ratio shows an increasing trend
There is no shortage of Nirapara product. There exists a good relation between management and
Efficiency of inventory management is satisfactory and
goes on better position. There are no trade unions in the company
SUGGESTION
Conduct a wide and careful survey in order to realize the customer satisfaction. Keep advertising in rural and urban areas separately depending on the media mostly familiar. Engage in own agriculture in paddy cultivation in order to tackle the shortage of paddy. The company can try to increase promotional schemes like scratch and win coupons or free gifts or extra quantity. This will be helpful in improving the sales.

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CHAPTER 6 CONCLUTION

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CONCLUSION
The intention behind doing this product was to get better idea about the organization, its different departments, responsibilities of key personnel and its competitive performance with respect to specific operational parameters K.K.R MILLS is a leading manufacturer for the quality assured branded rice NIRAPARA marketed in Kerala state and abroad. This company is at its strive towards excellence. It has happened due to the combined efforts of its management and the dedicated work force. The activities of the plant office and all other departments are functioning at the impressive standards for achieving the organizational objectives. The commitment and efficiency of the employee helped K.K.R MILLS in capturing highly competitive market.
Increasing the frequency of advertisement on mass media will improve the product awareness among the public. Strict quality control with the help of modern equipments will enable the company to enter the international market. Sales turnover can be enhanced with the help of providing more commission to retailers and damage allowances, credit facility etc. to distributors. The main positive aspect of the Company is that it could maintain a better relationship between the management and employees. The company does not have any trade union for the employees and hence no labour problems. Hence we can conclude that the K.K.R MILLS will be able to reach greater heights.

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APPENDIX

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BIBLIOGRAPHY
BOOK Berry G C. Marketing Research (Forth Edition). New Delhi: Tata McGraw-Hill. Kotler Philip, Keller Kevin Lane, Koshy Abraham and Jha Mithileshwar. Marketing Management (13th Edition). New Delhi: Pearson JOURNAL ARTICLES Company articles. Company posters, notices. Product brochures. Annual report of KKR Group of companies. WEB SITES www.nirapara.com www.irri.org www.keralaricemillers.com

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An Organizational Study at K.K.

SJCET School of Management

An Organizational Study at K.K.R Mills

1.1 General Introduction

SJCET School of Management

An Organizational Study at K.K.R Mills

1.2 Scope of the study

1.3 Objectives of study

SJCET School of Management

An Organizational Study at K.K.R Mills

To understand the various practices applied in the organization.

1.4 Reasons for selecting the company

1.5 Study plan

SJCET School of Management

An Organizational Study at K.K.R Mills

1.6.1 Sources of data

SJCET School of Management

An Organizational Study at K.K.R Mills

1.7 Limitations of the study

1.8 Chapter scheme

SJCET School of Management

An Organizational Study at K.K.R Mills

An Organizational Study at K.K.R Mills

2.1 INDUSTRY PROFILE

SJCET School of Management

An Organizational Study at K.K.R Mills

SJCET School of Management

An Organizational Study at K.K.R Mills

To generate rural employment.

SJCET School of Management

An Organizational Study at K.K.R Mills

2.2 WORLD SCENARIO

SJCET School of Management

An Organizational Study at K.K.R Mills

WORLD TOP 10 RICE PRODUCING COUNTRIES

SJCET School of Management

An Organizational Study at K.K.R Mills

SJCET School of Management

An Organizational Study at K.K.R Mills

SJCET School of Management

An Organizational Study at K.K.R Mills

is the second leading producer of the rice in the entire world,

preceded only by China.

SJCET School of Management

An Organizational Study at K.K.R Mills

An Organizational Study at K.K.R Mills

RICE EXPORT SCENARIO

SJCET School of Management

An Organizational Study at K.K.R Mills

SJCET School of Management

An Organizational Study at K.K.R Mills

An Organizational Study at K.K.R Mills

SJCET School of Management

An Organizational Study at K.K.R Mills

SJCET School of Management

An Organizational Study at K.K.R Mills

CHAPTER 3 ORGANISATION PROFILE

3.1 COMPANY PROFILE

An Organizational Study at K.K.R Mills

About the company

SJCET School of Management

An Organizational Study at K.K.R Mills

Name and address