CITY COLLEGE

ORGANISATION STUDY ON DAVANGERE SAMSONS DISTILLIERS PVT LIMITED

SUBMI TTED BY, RAJU PATIL S.G

PART -A INDUSTRY PROFILE The use of alcohol as drink is an age-old story in India and it appears that the technique for fermentation and distillation was available even in the Vedic times. It was then called 'SOMARASA' and was used not only for its invigorating effect but also in worship. To date, not only has the consumption of alcohol been continued but also it is an integral part of the ayurvedic system of medicine. The first distillery in the country was set up at (Kanpur) in 1805 by Carew and Co. Ltd., for manufacture of Rum for the army. The technique of fermentation, distillation and blending of alcoholic beverages was developed in our country on the lines of practices adopted overseas particularly in Europe. The distillery industry today consists broadly of two parts, one Portableliquor and the Industrial alcohol. The portable distillery producing Indian Made Foreign Liquor and country liquor has a steady but limited demand with a growth rate of about 8 percent per annum. The industrial alcohol industry, on the other hand, is showing a declining trend because of high price of molasses, which is invariantly used as substrate for production of alcohol. The alcohol produced is now being utilized in the ratio of approximately 52 percent for portable and the balance 48 percent for industry use. Over the years the portable liquor industry has shown remarkable results the production of quality spirits. The utilization of Ethyl alcohol or Ethanol, now popularly known alcohol, for industrial use is a recent phenomenon and its importance

came into being towards the end of the second world war. With protection being granted the sugar industry in 1932, a large number of sugar factories were established the country, particularly in Maharashtra and Uttar Pradesh where irrigate facilities existed resultantly, caused for cultivation of At that sugarcane. This increase resulted accumulation of molasses, which unmanageable environmental problems. time the demand for molasses was almost significant and the sugar mills had to incur some expenditure on removal of this by-product i.e., molasses. For resolving these problems a joint committee of U.P. and Bihar was constituted to explore the possibilities of developing alcohol based industries for the purpose of utilization of molasses. The committee in its report recommended that alcohol produced by the distilleries should be admixed with petrol, to supplement motor fuel. The production of alcohol did not only help in solving the problems of disposal of molasses but it also filled up the gap in the demand and supply of motor spirit. As a substantial quantity of alcohol after meeting its requirement for manufacture of gasohol alcohol was diverted for production of alcohol based chemicals in different parts of the country. The utilization of alcohol for this purpose progressed steadily and a substantial quantity of alcohol produced in the country is now being utilized for manufacture of solvents and intermediates. Till a few years back a little more than 50% of alcohol produced in the country was being utilized for production of alcohol based chemical but after the decontrol of molasses in the year 1993 the utilization of alcohol for production of chemical, dye-stuff, synthetic rubber, polymers and plastics etc. has received a set back.

LIQUOR MARKET: FEATURES Market Characteristics: Preference for brown spirits (molasses flavor) in Indian market Liquor packed in 180,375,500,750 and 1000 ML bottles. 180 ML and 750ML are fast moving. Brand building very important. Advertising of liquor is banned in most of the places in India. Promotions, sponsorships are done to brands Trade: Open Market: Maharashtra, J&K, Orissa. Auction Market: Uttar Pradesh, Rajasthan, Madhya Pradesh, Bihar, Punjab, Chandigarh

Government controlled: Tamilnadu, Karnataka, Delhi, and Kerala.

Regulations: Movement of Indian made Foreign liquor (IMFL) products regulated across states. Entire process of manufacturing to distribution attracts tax plenty. Duties and Taxes:

Sales tax (ad valorem), Bottling fee, Liter fee, Vend fee, Gallonage fee, Privilege fee, Import/Export pass duty etc. are some of them. In Karnataka some of the tax levied are; duty; liquor from spirits Rs, 45 bulk liter; premium malt whisky 60/- bulk/liter; liter fee-Rs.20 bulk liter sales ton; 60%; cess 5%.

Technical Features: CRITERION FOR SELECTION OF LOCATION The main criterion for selection of the factory location for the expansion of the distillery are; a] The existing distillery is already in operation from the last 12 years. b] Raw material availability. c]Availability of perennial water supply. d] Possibility of easy disposal of effluents. e] Proximity of educational institutions and / other facilities including housing etc.., / with easy availability of labour and staff. f] Access to power supply from KEB / own captive generation.

Further important details to be checked up about the site are: a] Soil Conditions. b] Contour Survey. c] Rainfall in the area. d] Ground water resources / potential. e] Weather conditions, maximum and minimum temperature, humidity etc.., f] Seismographic soundness of the place.

2. COMPANY PROFILE a. Background and Inception of the Company "Manufacturing fine quality rectified and neutral spirit" is the motto of Samsons Distilleries Private Limited. Samsons Distilleries Private Limited was founded in the year 1993. The Chief Promoters of this distillery is Dr. Shamanur Shivashankarappa, MLA of Davangere. He is noted for promotion of technical education in the state and also the promoter of famous Bapuji Institute of Engineering and Technology, J.J.M. Medical College, Bapuji Dental College, M.B.A Programme and other professional colleges in and around Davanagere. The Samsons Distilleries Private Limited is the brainchild of Mr. S.S. Mallikarjun, Ex-Minister for youth services and sports.(Government of Karnataka) The location of the distillery is at Duggavathi and registered office at Davanagere

Location: Name of the Unit Location Address Address : : : Samsons Distilleries Pvt. Ltd. Duggavathi, Davanagere District Samsons Distilleries Pvt. Ltd. Duggavathi 583137 Davangere District.

Karanataka, India. Factroy phone L 288035, 288036. Factory fax : 08192-288055. Registered Office : Samsons Distilleries Pvt. Ltd. (Sri Kalleshwara Industries compound) #627, Anekonda Davanagere-577004 Karnataka, India, Phone No. : (08192)275144, 275248 Fax No : (08192) 275039 E-mail:Samsons@sancharnet.in Website: http://www.Samsonsdvg .com/ The following are the licenses held by SAMSONS DISTILLERIES PVT. LTD, 1] Distillery license issued by the State Excise Commissioner for manufacture of Rectified Spirit/ Neutral Spirit from Molasses. 2] License for manufacture of IML from R.S/N.S/M.S/G.S etc. 3] .License for Bottling of IML 4] License for possession and sale of Denatures spirit 5] License for possession and use of molasses. 6] Factory license issued by Factory Inspectorate.

7] Boiler License issued by Boiler Inspectorate. 8] Consent under water act issued by the Pollution Control Board for discharge of Treatment Effluent. 9] Consent under Air Act issued by the Pollution Control Board for emission.

b. Nature of the Business Carried Samsons Distilleries Pvt. Ltd. is carrying out production based unit of producing Rectified spirit, Neutral spirit (Ethyl alcohol 95% min) Impure spirit and Ethanol (Anhydrous Alcohol).

c. Vision, Mission and Quality Policy

Vision : To ensure steady growth in the field of distilleries. To build a high degree of customer confidence by sustaining international standards of excellence in product quality performance and vision. To manufacture high quality spirit.

Mission: Maintaining the equality of liquor brands to meet changing consumer expectations. Offering quality products and value for money to the consumers. Constantly controlling costs to be the minimum cost producer. To abide by the rules and regulations of the government.

Quality Policy: The company is following the latest advanced technology for producing quality spirits. It follows the various policies and measures laid down by the ISO in producing spirits. It has also adopted environmental safety policy to control pollution.

d. Product Profile

Products- Spirit COMPANY MANUFACTURE'S RECTIFIED SPIRIT(R.S.) NEUTRAL SPIRIT(N.S) (ETHYALCOHOL 95%MIN) IMPURE SPIRIT ETHANOL(ANHYDROVS ALCOHOL)

IMFL-BOTTLING UNIT RS Based Brands SARDAR FINE WHISKY SARD AR FINE BRANDY SARDAR XXX RUM SUNSHINE FINE BRANDY WISDOM FINE WHISKY

N.S Based Brands MADIRA-FINE WHISKY BLUEMOONS SPECIAL WHISKY FIRST CHOICE WHISKY

 MAGIC WHISKY

SHOT WHISKY

MADIRAXXXRUM GLORY XXX RUM.

Rectified Spirit: It contains 94% of alcohol. Production capacity is 60 KLPD. It is mainly used in arrack. Clients: Mysore Sales International Limited.,(MSIL) Mysore Sugar Company Ltd., Khodays India Ltd., Khodays Beverages Ltd., Neutral Spirit: It contains 95-96% of alcohol. Production capacity 30 KLPD. It is used to make IMFL products. Cosmetics and Perfumes.

Clients:

Karnataka Beverages and Distilleries Ltd., Shashi Distilleries Pvt. Ltd Rhizome Distilleries Ltd., Tilaknagar Industries Ltd.,

Impure Spirit: It is as similar to Rectified Spirit but impurities in this Spirit are more, hence, it cannot used to make any type of liquor. Its production depends on the production of Rectified Spirit. It is used for hospital, domestic usage and paint Industry. Clients: Ashwini Chemicals Ltd., Sushrutha Herbal Pvt.Ltd., Gagan Paints Siddaganga Oil Extracts Ltd., Cosmetic Companies. Ethanol: Ethyl alcohol is termed as Ethanol which can be manufactured by fermentation from the carbohydrates in molasses. It contains 99.52% of alcohol. The latest trend in the alcohol producing countries is to use it is an alternative fuel or blended with petrol. As the reserves of crude are depleting, there is no difficulty to use 20% Ethanol with petrol but currently in India only 5% is used. Its production capacity range to 55 KLPD.

Clients:

Hindustan Petroleum Corporation Ltd., Bharat Petroleum Corporation Ltd., Indian Oil Corporation Ltd., Biocon India Ltd.,

Indian Made Foreign Liquor: Production Capacity is 3000 cases per day. IMFL products are made through blending by using Neutral Spirit. Clients: Karnataka State Beverages Corporation ltd.,(KSBCL) Kerala State Beverages Corporation Ltd., e. Area of Operation Presently the sales are through Karnataka State Breweries Corporation Limited (KSBCL) within the state. f. Ownership Pattern It is a Private Limited Company owned and managed by Shamanur group. g. Competitors Information Though there are no competing distillery in the locality but all other leading distilleries in Karnataka are the competitors. SL.NO 1 2 3 LIST OF COMPETITORS M/S The Mysore Sugar Company limited Mandya Mysore District. M/S Gemini Distilleries Ltd Chamrajanagar Road, Nanjangud, Mysore District M/S Somaiya Organic Chemicals Sameerwadi, District Bijapur

4 5 6 7 8 9

M/S Ravindra & Co Mallik Mirapur, Bidar District M/S Pampsara Distillery Chitwadagi, Bellary District M/S Gauri Industries B.R Road, Gouribidanur Kolar District , Karnataka. M/S Khoday Distillery Ltd Kannayaakanna, Agrahara Anekal Taluk Ananapura Post, Bangalore M/S Ugar Sugar Works Ltd Ugar Khurd, Belgaum District. M/S Hiranyakeshi S.S.K Niyamit Sankeswar, Belgaum District.

Samsons Distilleries Private Limited, is one of the leading distillery in Karnataka. h. Infrastructural Facilities The factory is located in large square area. State of the Art infrastructure of administrative office. Well-furnished canteen with all required facilities. Temple is situated just opposite to the factory.

Well-built quarters facilities is provided to the workers.

Adopted improved technological manufacturing facilities. Workshop facilities. Pollution-free green area.

Wastes ,Water Treatment and Effluent Treatment Plant etc.

i. Achievement / Awards The Company has been awarded Prestigious ISO 14001/1996 from Certification International (UK)) Limited.

j. Future Growth and Prospectus The company has been constantly exploring various avenues in the distillery and other allied industries besides trying to identity the opportunities in new areas, the company has following future plans Manufacture of Grain Spirit. Proposal to set up a mini integrated steel plant through sponge iron route. Canal based mini hydel power plant, Diversification include carbon dioxide bottling and manufacturing of Fish feed compost etc. Upgrading the quality of spirit for the purpose of producing premium quality liquor.
Co-existence of Bottling unit and its Marketing Upgrading the quality of R.S and N.S
Putting up of Gas Enginees which run on Bio-gas to produce for Go-gen.

k. Work flow model The work flow instruction are given by the top management and followed there after

Manufacture of Neutral Spirit from Rectified Spirit

Manufacture Anhydrous Ethanol

Distribution of final products is through Karnataka State Breweries Corporation limited (KSBCL)

PART -B MCKENSEY'S 7 S Frame Work MCKENSEY'S 7 S FRAMEWORK is a management model that describes 7 factors to organize a company in a holistic and effective way. Together these factors determine the way in which a corporation operates The framework suggest that there is multiplicity of factors that influences an organization ability to change and its proper mode of change. Because of interconnectedness of variables it would be difficult to make significant progress in one area without making progress in others as well.

Structure : In 7s structure refers it the way in which organizations units relate to each other.
a.

Organization structure of Samsons Distilleries Private limited.

Substructure: The design of an organization Structure is a Critical task of the top arrangement of an organization. It refers to organizational arrangement and relationships. It prescribes formal relationships among various positions and activities. Arrangements about reporting relationships, how an organizational member is to communicate with other members. What role he is to perform and what and procedures exist to guide the various activities performed by members are all part of organizational structure. This organization consist of various departments like Office department, production department, Maintenance department, Electrical department, ETP [Effluent Treatment Plant] department, Stores department,Bottling department Marketing department,Human resource department,Finance department. Detailed study of various departments and their functions: Office Department: Office Department their main work is maintaining the accounts, statement and other related documents. Functions of Office Department: It maintains the accounts of salary paid to the Employees. It maintain the factory related documents. Financial aspect and HR aspect managed by the registered office. Registered office of the distillery is at Davanagere which is concerned with all managerial work related to the Industry.

Production Department: Production is the process by which raw-material and other are converted in to finished products. Nature of production can be better understood if we view the Manufacturing function from three angles: Production as a system, Production as an organisational function and decision making in production. Production Management involves application of Planning, Organising, Directing and Controlling of the Production Process. Functions of Production Department. Molasses is the main raw- material for production of spirit. To carry out fermentation and distillation Process. To produce quality spirit. Reduced Wastage. Maintaining the Plant. Maintenance Department: Maintenance refers to the upkeep and protection of plant, building, machinery, and other fixed asset of a firm Which are subjected to deterioration due to heir use and exposure to environmental condition over a period of time. Maintenance Engineering is that function of plant in good operating condition. Functions of Maintenance Department: production

management at is concerned with day to day problems of keeping the physical

 To perform the repairs and renewals in the plant. To maintain different equipments in the plant. Equipment inspection and lubrication. To give guidelines to the Welders, Fitters and Turners. Alteration of existing equipments.

New installation of equipments.

Electrical Department: There are two main departments in Electrical Departments 1. Boiler Department. 2. Turbine Department. 3. Power House Department. The main function of boiler house is to produce steam and send it to turbine to generate power. Paddy Husk is the main input to the boiler. It is heated at a particular temperature and steam is produced which is sent to turbine.

The main function of turbine is production of Power. rotation when steam is passed to turbine it is converted in to Electrical Energy.

The main function of turbine is there is clockwise and anticlockwise

The main function of departments. Effluent Treatment Plant:

power house is to distribute power to various

The Environmental

Pollution

Control

main

work is

maintaining the environmental Clean. Environmental Pollution Control mainly two categories. 1. Effluent Treatment Plant 2. Water Treatment Plant Functions of Effluent Treatment Plant: [ETP] ETP is concerned with production of Biogas through ETP( Spent wash which is a waste in the process of fermentation) and Biogas produced is used as a fuel for the boiler department. WTP is concerned with the treatment of raw water from the river in to filtered water, which is used in production process. Stores Department: Store is defined as supplier of goods. And storage is defined as the act of storing the goods. Store is the function of receiving, storing and issuing materials. It involves supervision or the of clearance incoming supplies, to ensure that they are maintained in good condition, safely and in readiness for use when required file they are in storage and issuing them against authorized requisition. Functions of Store Department: To receive the materials from the head office and to issue them to various departments. To receive raw-material and account for them.

It is concerned with the receiving, issuing and maintenance of material. Materials received and issued to the department are all registered in the storage register.

Bottling Department:

Bottling Unit is to produce liquor from neutral spirit through blending. Functions of Bottling Department: The main function of bottling unit is to produce, liquor from neutral spirit through blending. IML: Indian Made Liquor includes Rum Whisky, Brandy etc. NS taken from the warehouse is mixed with DM water in a blending tank. Depending on the either Brandy Whisky or Rum to be produced essence is added to this mixture (Colour and Caramel are also added). This mixture is stirred for a particular period for maturity. Then it is sent to filters for filtering thereby sent to bottling.

The bottling mechanism is as follows; Automatic filling machine Capping Sealing Dist checking Labeling Packing A preset proportion of NS and water are mixed and left for maturation. Then it is packed in glass bottles of 180ml.

3.2 MARKETING DEPARTMENT: Marketing is the process of planning and executing the conception, pricing, promoting, and distribution of ideas, good, and services to create exchanges that satisfy individual and organization goals. As the government plays a vital role in testing the quality,throug Excise commision and price fixition. The marketing department in the samsons importance. The company main products are spirits which are sold in different States in India in the past years. At presently sales are with in Karnataka. industries is of little

Marketing department charts:

MARKETING HEAD
HEAD

Area Sales Manager

manager

Sales Officer
Officer

Sales Representative
Representati ves

Demonstration Staffs
Staffs

Functional Ares:

A. Functions of Exchange: 1. Buying and selling: For a sale of product there must be a buyer and seller who exchange the product and product worth of money. 2. Assembling: Assembling customers to buy a product is also a major function of the exchange.

B. Functions of Physical supply 1. Transportation: To reach right place at right time when demand arises for a product and for supply.

2. Storage: Availability of goods by storing in a warehouse a product can be sold when demand arises. C. Facilitating functions 1. Financing: Finance is a back bone of the any organization and it helps to marketing department like finance for transportation, for advertisements, etc 2. Department: Marketing department facilitating many departments in an organization like for production department how much to produce based on the market survey and the demand for a product and for finance to keep sales transactions, etc. 3. Risk taking 4. Standardization and grading: Standard of product packing, quality, etc set by a marketing department facilitates lot to marketing department and for grading. 5. Market information: like market survey for a product, opinion about product from consumers, competitors information facilitates lot.

HUMAN RESOURCES DEPARTMENT INTRODUCTION: The Human Resources Department is performing a vital role in the organization. Human Resources Management is concerned with people dimensions in management. As every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring their commitment to the organization. HRM is the qualitative improvement of human beings who are considered the most valuable assets of an organization. In Samsons Distillers also Human Resources are given more importance, cared & always motivated towards organization goals. PROCESS OF HR DEPT: The process followed in Samsons Distillers as follows: a) Acquisition of Human Resources: In Samsons Distillers acquisition process is concerned with securing & employing people who are required by the organization, according to the hierarchy level in the organization keeping in mind organizational objectives.

b) Development of Human Resources:

In Samsons Distillers development process is concerned with improving the skills of employees, molding their behavior according to organization needs & changing their skills, knowledge, atitude,& values. All this process is done to improve the quality of service which he renders for the organization & these qualities of employees are improved to achieve organization goals.

c) Motivation of Human Resources: As Samsons Distillers is situated in rural area where the motivational expenses( expenses made on employees to motivate them) are low compare to urban areas. For example: if you increase salary or if you give a gift/ incentive of Rs.250 to 500 the employee gets motivated. In case of workers if you give a incentive of Rs. 150 to 250 then he will be motivated. In Samsons Distillers most of the employees are self motivated are they are working in the organization from past 5 to 10 years. Nearly 85% of employees in Samsons Distillers are working from past 5 years.

d) Maintenance of Human Resources: The maintenance function is concerned with providing those working conditions that employees believe are necessary in order to maintain their commitment to the organization. The HR dept is also continuously working to improve the working conditions of the employees. For example:

As the working conditions were not good in Administration and Management block of the organization & the employees were disturbed with the working conditions. So, they requested to HR dept to improve the working conditions of the office. All this happened 2 years back & this problem was solved by the HR dept within a span of 6months. That is, A new building was build were Administration & Management block was shifted. Now the employees are happy and HR dept Head said that after this action the efficiency of employees is increased by 20%.

HOW HR DEPT WORKS: The Samsons Distillers works on continuous basis, so HR Dept has different policies & procedures to acquire, develop, motivate & maintain Human Resources of the organization. The Samsons Distillers is functioned for the welfare of employees.. It solves problems between workers & management in the organization. The functions as follows;
a) The company fixes the salaries of workers, employees and others who

rendered service for the organization.

b) The company conducts employee welfare & safety programs. c) Over all the company look after the employees in distillers.

EMPLOYEES WELFARE: Samsons distillers has conducted many programs for the welfare of employees. The different allowances paid by the company to the employees according to employees act as follows; 1. provident fund: The company pays 12% on Basic+DA as provident fund. 2. gratuity:

The company pays 15days salary (per year) for permanent employees. 3. EDLI (Employees Deposit Linked Fund): EDLI means if any employee expired during the course of employment, then compensation amount is paid to his dependents.
4. Workmen Compensation Payment:

The company pays compensation, if any employee met with an accident while working and the payment is done according to the act.
5. Medical Allowances:

The company pays for all the employees as Medical Allowances, yearly once general checkup.
6. Traveling Allowances:

The company pays traveling allowances according to the distance traveled by the employees. The company also has transportation facility for employees. 7. Uniform: The company also provides uniforms for the employees. The company provides 3 pairs of uniform for 2years to permanent employees. The company also pays stitching allowances and washing allowances.
8. Night Shift Allowances:

The company pays Night Shift Allowances to the employees.

9. Canteen Facility:

The company has clean & hygiene canteen facility. The company charges Rs.0.60 for tea, Rs.1.20 for Tiffin & Rs.3.50 for full meals. 10. Safety Training Programme: The company has conducted many safety training programme in Samsons Distilliers. The safety training programme is conducted once in two months.

The company has done many others programmes for the welfare of employees and there are many other allowances made by the company for the welfare of employees. TIME OFFICE: As every organization has Time Office, even Samson Distillers has Time Office were attendance register of the employees is maintained. TIME OFFICE PROCESS: The company has three shifts & there are different workers in different shift. Each shift is of 8hours. 1st shift from 7:00 to 3:00 2nd shift from 3:00 to 11:00 3rd shift from 11:00 to 7:00 One general shift: From 9:30 to 5:30

FINANCE DEPARTMENT INTRODUCTION: The Financial Department is plays an important role as every thing that company does is revealed in this matter in the sense of financial statement and reports of the company. And this is the department which constitute towards the shareholder and the investors of the company so to maintain this department prior concentration must be there and this must be prepared only by the accountants who have the knowledge or by company secretary or by charted accountant appointed by the company which must be reviewed by the company auditor. This report shows the performance of the company and by keeping this department accurate and transparent they can attract more investors or can get competitive advantage. A business concern means a concern, which undertakes trading, or manufacturing activities of goods/services. The basic criteria for starting a business unit are to make profit from that. There are so many trading activities in a financial year. There for the company has to make the records of all these activities. So these arises the used for book-keeping. Now a days every business have to keep books of accounts. It is the requirements of the law. Generally the companies are required to maintain mainly types of accounts.

1. Annual Report. 2. Profit and Loss Account 3. Balance sheet. 4. Cash Flow Statement 5. Ratio Analysis
The same process is followed in Samson Distillers as mentioned above. ABOUT EMPLOYEES:

The company has employed 8 employees including Chief Account Officer.

SUMMARY OF LATEST ANNUAL REPORT OF THE COMPANY Financial results of the company for the year 2007-08 are summarized here
2007-2008 Spirit Unit 1. Total income including agriculture income 2. Less expenditure 3. Profit before interest and depreciation 4. Interest 5. Profit before Dep. 6. Depreciation for the year 7. Profit of it after dep. but before provision for taxation Deffered Tax 8. Provision for taxation 9. Profit Loss after tax 10. Total Profit/Loss 3476.63 2951.57 525.06 62.79 462.27 179.95 282.32 (1.70) 44.08 239.94 239.94 Bottling Unit 270.77 344.63 (-)73.86 (-)73.86 12.98 (-)86.84 (-)86.84 (-J86.84 Total 3747.40 3296.20 451.20 62.79 388.41 192.93 195.48 (1.70) 44.08 153.10 153.10 2006-07 Spirit Unit Bottling Unit 1909.03 938.17 970.86 63.31 907.55 193.79 713.76 88.98 624.78 624.78 174.95 222.53 (-)47.58 (-)47.58 14.76 (-J62.34 (-J62.34 (-)62.34 Total 2083.98 1160.70 923.28 63.31 859.97 208.55 651.42 88.98 562.44 562.44

SAMSONS DISTILLERIES PVT. LTD.

ANEKONDA, DAVANGERE - 577 001
Profit and Loss Account for the year ended 31st March 2008
SCH Yes ended Spirit Unit INCOME Sakes Sale of Power Other Income Incr/Decr. in Stock J 317969065.0 0 920913.72 10088779088 19864137.00 347662895.6 0
EXPENDITURE Raw Material M Consumed Selling & Admn. N Exp

31-3-2008 Bottling Unit 25975098.00 823815.00 277678.60 27076951

Year ended Spirit Unit 18253103.00 2253357.40 14719472.20 (-) 8823081.00 190902851.60

31-3-2007 Bottling Unit 130525.00 29550.00 (-) 265078.20 17494996.80

K L

M N

Financial Charges Rent Depreciation

229939666.05 65216997.85 6278795.00 17995666.00 319431124.9

10235608.00 23026922.42 12000000.00 1297754.00 35760284.42

48696352.75 45120570.72 6331158.00 193779060.00 11952741.47

6586905.00 14466197 1200000.00 1476349.00 23729451.00

Profit / Loss for the year before tax Differed Tax Less: Provision for

0 28231770.70 170013.00

(-) 8683692.82 71375710.13 -

(-) 623445.00 -

Taxation Current Tax Profit for the year after tax

carried to balance sheet

4407690.00 23994093.70

8897530.00 (-) 8683692.82 62478180.13

(-) 6234454.00

SAMSONS DISTILLERIES PVT ANEKONDA, DAVANGERE 577001 Balance sheet as at 31st March 2008 Sch Amount as at 31-03-2008 Rs I SOURCES OF FUNDS 1. Shareholders Fund Share Capital Reserves & Surplus 2. LOAN FUND Secured Loan Unsecured Loan C D 59153234.39 5353730.34 64506964.73 3. Differed Tax Liability TOTAL II APPLICATION OF FUNDS 1, Fixed Assets Gross Block Less ; Depreciation Net Block Capital Work in Progress 2. INVESTMENTS 3. CURRENT ASSETS Loans & Advances G F 1695290.00 E 265058041.75 25058041.75 125151313.00 139906728.75 41311176.00 276497534.00 A B 400000000.00 167859393.27

Amount as at 31- 03-2007 Rs.

400000000.00 152548992,39

20750000.00 5353730.34 261033730.34 4301189.00 222953911.73

237571264.01 10587893.00 131713371.01 2496417.00 2496417.00 1695290.00

a) Inventories b) Sundry Debtors c) Cash and Bank Balances d) Loans and Advances

95761466.49 57426406.43 3601504.55 3916714.85 195956572.32

16433887.07 76063669.75 3129625.58 41690412.06 137317594.46

4) Less: CL & Provisions H a) Current Liabilities b) Provisions for Taxation 56653367.07 4407690.00 61061057.07 Net Current Assets TOTAL: TOTAL 134895515.25 276497534.00 45672419.74 4596341.00 50268760.74 87048833.72 222953911.73

Balance Sheet Abstract and Company's General Business Profile

1. Registration details: Registration No. 14019 Balance Sheet Date State code No. 31.3.2008 08

2. Capital raised during the year -(Amount in Rs. thousands) Public Issue Bonus issue Nil Nil Right issue Private placement Nil Nil

3. Position of Mobilisation and Development of funds: (Amount in Rs. Thousands) Total Liabilities 276691 Total Assets 276691 Sources of funds Paid up capital Secured Loan Application of funds Net fixed Assets Net Current Assets Accumulated losses 4. Performance of the company (Amount in Rs. Thousands) Turnover Profit before tax Earning per share 374739 19548 Total Expenditure Profit after tax Dividend Rate % 355191 15164 nil 139907 35089 Investments Miscellaneous Exp. 1695 40000 59153 Reserves and Surplus Unsecured Loan 172184 5354

5. Generic names of principal products/services of company (As per monitory items) Item Code No. (ITC Code) 0506 Product description- Alcoholic and Non-alcoholic beverages Item Code No. 0506

Cash Flow Statement for the Year Ended 31-03-2008

Year 2006-07
A. Cash flow from operating activities

Net profit/loss after tax and extra Ordinary item adjustment for depreciation Miscellsaneous Expenditure written off Interest paid Operating profit before working Capital charges Adjustment for trade and other receivables
Inventories

Trade Payables Cash generated from operations Cash flow before extra ordinary items Extra ordinary items. Net Cash form operating activities B. Cash flow from investing activities Purchase of fixed assets Purchase of investments Interest capitalized Miscellaneous Expenditure Net cash used for investing activities C. Cash flow form financial activities Proceeds from issue of share captial Proceeds from barrowing Preliminary expenditure Interest paid Net cash from financing activities Net charges in cash and cash activities Opening cash and cash equivalents

15310 19294 6279 40883 (-) 21160 (+) 79328 (+) 10622 (+) 47545 (+) 6662 24990 24990 38403 6279 32124 (+) 472 3130

56244 20855 6331 83430 (+) 59865 (-) 21223 (+)3 38639 (-) 44791 3637

3369

(-) 33321 6331 (-) 39652 (+) 1502 1628

RATIO ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS

ShareCapital Share capital is same in both the years 2008 and 2007 at Rs. 4, 00,00,000 that means there is no increase in share capital. Reserves and Surplus At 2007 Reserves and surplus was at Rs.15, 25,48,992 and increased to Rs.16, 78,59,393 during the year 2008.That means they have increased the distribution of reserves and surplus.

Loan Funds
At 2007 total loan funds was at Rs.2, 61,03,730 and increased to Rs.6, 45,06,964 during the year 2008 .This indicates company has increased its borrowings. Inventories: Inventories is at Rs.1,64,33,887 in 2007 and increased to Rs.9,57,61,466 in 2008. This indicates they are increasing the inventory in the company. Cash and Bank Balance This indicates cash in hand and cash at bank. In 2007 at Rs.3,12,9,625 is increased to Rs.3,60,01,504 in 2008. This indicated company maintaining cash and bank balance for working capital operation. Current Liabilities and Provisions The amount in the year 2007 was Rs.5,02,68,760 and is again increased to Rs.6,10,61,057in2008. Sales Sales in the year 2007 was Rs. 1,77,30,525 in Bottling Unit and Rs. 18,27,53,103 in Spirit Unit is increased to Rs.2,59,75,098 in Bottling Unit and Rs.31,79,69,065 in Spirit Unit during the year 2008.

Other Income
Other Income during the year 2007 was Rs.29,550 in Bottling Unit and Rs. 1,47,19,472 in Spirit Unit is increased to Rs.8,23,815 in Bottling Unit and Rs.1,00,88,779 in Spirit Unit during the year 2008.

Position of Mobilization and Development of funds: (Amount in Rs. Thousands)

Total Liabilities Total Assets 276691 276691

Sources of funds (Amount in Rs. Thousands) Paid up capital Reserves and Surplus Secured Loan Unsecured Loan 40000 172184 59153 5354

Performance of the company (Amount in Rs. Thousands) Turnover Total Expenditure Profit before tax Profit after tax 374739 355191 19548 15164

Skill : Different Skills: 1.Technical skill 2.Managerial Skill 3. Clerical Skill Types or Classification of skills: 1 .Skilled = Training = On the Job Training 2. Semi-Skilled = Training = On the Job Training 3. Un-Skilled = Training = On the Job Training Methods of Training: For Skilled workers job instructions method can be used. For semi-skilled workers Coaching method training can be used. For un-skilled workers give the guidelines for repairing the machineries, equipments, fitters, welders. Turners. 1. In order to perform a job in an industry employees needs to posses certain skills 2. In Samson distilleries employees possess the required skills on the basis of their nature of the Job. Employees posses different skills like technical skill, managerial skill, clerical till etc., depending upon their job. In order to impart necessary skills Samson distillery has adopted the method of on the job training for its employees. Whenever a new employee joins the organization he is trained on the job to impart the skills to perform the job efficiently.

Style: The organization is following the top down approach in relations to its functioning. All the managerial decisions are taken by the top management and allowed by the successive managerial levels. It is a mechanistic organization. The style of functioning is participative in nature. The views of all the levels f employees are taken into consideration while taking some important decisions or while framing certain rules for the organization. Strategy: Strategy in simple terms, is a unified course of action to achieve the goal Glueck defined the strategy as, "unified, comprehensive and integrated plan lesigned to ensure that the basic objectives of the enterprise are achieved."Mintzberg defines strategy as, " a pattern in a stream of decision or actions. Functional Strategies: 1] Finance: Reduction of Cost of finance 2] Materials: Reduction of cost of inventory 3] Production : Simplification of process to reduce process time. Environment Safety / Waste Elimination Strategy The Company has been constantly and intensively monitoring the industrial effluent to ensure that no harmful impact is done to the environment around the factory area. The effluent has been extensively used in manufacturing of Bio-fertilizer by using press mud and the municipal waste. Every employees of the Company are well aware of their responsibility towards the environmental safety. The Company has developed

green belt area, and is taken massive steps in educating the local farmers as usages of Bio-fertilizers and awareness of the environmental safety. The Company has taken massive steps in rainwater harvesting by collecting and storing the rainwater. This will indirectly increases the water table around the factory area. System: There are various systems followed in various departments in the Company Inventory Control System Molasses is the raw material for production department, which is stored in inventory at huge storage tanks. Whenever the molasses is required for the production department, it is issued ON First in First Out basis (FIFO). After the production of spirit (RS,NS,Ethanol) from molasses, it will be sent to bottling. While issuing the spirit to bottling unit from spirit warehouse, the KSBCL authority will fulfill the necessary formalities and issues spirit on the basis of First in first Out (FIFO) basis. Staff: There are various groups of staff working in the industry. They include:\ Technical Staff Lab Technicians, Engineers Clerical Staff Technical Staff Duties and Responsibilities: The Duties of technical staff is in various departments they work and they should always observe the processing of F&D and maintaining the

report about variation in the temperature level of process. The Responsibilities of the technical staff is give the full information about the number of liters produced per hour and per day to the production department supervisor. Lab Technicians Duties and Responsibilities: The Duties of lab technicians is they checking the Rectified and Neutral spirit samples. They do some experiments whether the spirit is good or not. The Responsibilities of the lab technician is once they check the sample spirit finally the spirit checking report should be submitted to Technical supervisor, Engineers Duties and Responsibilities: ; The Duties of the engineers in various departments like in production department there is any fault occurs in the machineries and equipments the mechanical engineer takes the responsibility of repairing the equipments. The Duties and Responsibilities of Electrical Engineer is maintaining the power house and distribute the power to all the departments voltage of capacity. The Environmental engineer is maintaining the clean and take the several measures to control the pollution and without any wastage of the production process waste spent wash is used for Bio-gas composting or producing. 4. Clerical Staff Duties and Responsibilities: The Duties and Responsibilities of the clerical staff is they work in the administrative departments and they concentrate in maintaining the accounts and statements. environment with sufficient

Clerical staff workers are maintaining the bills which are required for the transaction process. The Duties of technical staff includes in various departments like production (F&D) Boiler House, Turbine etc., ETP & WTP and F & D departments includes the lab technicians staff to check the samples. Shared Value: In 7S framework there is one variable termed as shared value which may be considered to be equivalent of the term Organizational Purpose.\ According to 7S framework, shared value refers to a set of values and aspirations that goes beyond the conventional formal statement corporate objectives. The Samsons Distilleries Pvt. Ltd., has many shared values and a spirit. Like To reach the greatest height in the field of Distilleries, To strive for excellence in management and other long-range activities to ensure leadership.

To provide good quality products to customers and build high degree of brand with them. To care for the environmental safety etc., In order to implement these values the distilleries has taken various

measures like adoption of ISO14001 Standards in its production and waste elimination strategy and other related measures.

PART-C SWOT Analysis of the Company Strengths Treating employees as resources and providing them necessary facilities. Need based training to employees. Well infrastructural facilities. Recruiting employees on the basis of their skill and experience. Management in providing quarters facilities to the employees near the company. Providing local employment. Weakness Difficult to adopt performance appraisal system for employees. Unable to sponsor labor welfare Programmes to the working class. Subject to rules and regulations of the Govt. Opportunities Easy availability of man power for vacant employees. Encouragement for young Employees. Improvement in production / quality by adopting new technology. Threats Seasonal market for liquors.

 Restrictions from the excise Department. Government rules and regulations. Advertising and promotional activities are restricted.

PART E Learning Experience Gained during In-plant Training I have attended the in-plant training at Samsons Distilleries Pvt. Ltd., which is one of the leading distilleries in Karnataka. This in-plant training enabled me to study all the sections of the industry. The officials and employees related to various section have cooperated me in my endeavor and they have also given proper guidelines to me in collecting the information's pertaining to all the departments. Following are some of the important points which I learnt during the implant training. Work Culture Within the stipulated duration of weeks my experiences thought me to develop the work culture. Time Management The rules and regulations maintained by the company to keep up time has made me to learn the importance of time management. Socialistic Approach I observed it is necessary to mingle socially with each other rather than individualistic in nature. Practical Knowledge The In-plant training experience has made me to gain practical knowledge about an organization. Impact of Technology

I observed that in order to produce improved products in is necessary to adopt advanced technology in production process. Importance of Human Resource It has made me to understand the interdependency of technology and the human resource. Work Aspiration In-plant training has provided a great exposure to the industry which made me aspirant to work in an industry.

Suggestions
1. Give more fair wage to the contaract based employees.
2.

Parmanent the employees it help to get the more work from the employees.

3. Company must establish the electicity storage department. That excess electrricity can be supply to the other village at the lower rates. It helps to social work. 4. Provide the life insurance scheme to the employees. 5. Supply the ethnol to the out of state also. 6. Establish the wine production department. Because the compnay haivng a huge area. 7. Adopt the new technology machinces. 8. Produce the more quality, flavour & Taste liqour. 9. Provide the off the job training programme to unskilled and semiskilled emplyoees

Conclusion
Samsons distilliers is the weel established private ltd industry. The main thing in the company is every products wastage become the raw material of the other products. The company also taking care of the environment pollution control through ETP. The industry can expect to grow and emerge as a key player in the international level. Be taking the safety and welfare measures observed in the industries have an important role to paly in the development of industries. Samsons distilliers private limited has made great effort to success in the past 16 years. It is frequently working on its objective that is growth, as industry belives growth for the success of the organisation.