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An Organisation Study at Indian Rare Earths Limited, Chavara, Kollam

Submitted in partial fulfillment for the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION


M G UNIVERSITY KOTTAYAM

Submitted by
Ampady S Register No: 10111

Under the guidance of


Mr.: Mathew Kurian Faculty Member MBA Department, Caarmel engineering College, Pathanamthitta

Caarmel Engineering College Perunad, Pathanamthitta May 2010

DECLARATION

I declare that the project report entitled An organisation study on Indian Rare Earths Limited Submitted by me for the award of Master of Business Administration of M.G University is my own work. The report has not been submitted for the award of any other degree of this university or any university.

Place: Kollam Date:

Ampady S

ACKNOWLEDGEMENT

First of all I wish to express my deep gratitude and thanks to God who helped us in completing the organisation study successfully.

I shall remain grateful to Mr.: Mathew Kurian, Faculty, MBA Department, Caarmel Engineering College for his amble guidance and encouragement for completing the organisation study. I am also extremely grateful to faculty member for their valuable suggestions and advice regarding this work.

I also express my profound gratitude to project guide Mr: A.Jayapalan, Sr. Manager, HRM for his valuable guidance and timely advice and well wishers for encouragement given to us during the course of the project.

It is my pleasure to express a deep sense of grateful to Mr: Chandrasekhar, Sr. Manager, Safety & Environment Department & MIS without his untiring efforts and tremendous background information this work would not have materialized. I express my sincere thanks to all the staff of IREL, Chavara for their co-operation during my study in the company.

Last but not least we thank my parents and for all their moral support and help, they had given to me.

CONTENTS
Introduction Industry Profile Company Profile Product Profile Customer Profile Departmentalisation

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

HRM Department Mining Department Production Department Quality Control Department Stores & Despatch Department Internal Audit Department Research & Development Department Project & Maintanance Department Marketing & Sales Department Finance Department Medical Department Security Department Safety & Environmental Department Purchase Department Civil Department

SWOT Analysis Findings Suggestions & Recommendations Conclusion Bibliography

Table of Contents

Subject Introduction Chapter 1 Objective & Scope of study Methodology &Limitations of the study Industry Profile Company Profile History of the organization Chapter 2 Vision & Mission of IREL Awards & Achievements Product Profile Customer Profile Human Resource Department Mining Department Production Department Quality Control Department Stores & Despatch Department Internal Audit Department Research & Development Department Chapter 3 Project & Development Department Marketing & Sales Department Finance Department Medical Department Security Department Safety & Environment Department Purchase Department Civil Department Chapter 4 Chapter 5 SWOT Analysis Findings Suggestions & Recommendations Conclusion Appendices

Page Number 7 9 10 11 14 15 16 17 20 22 24 37 39 44 46 49 51 52 54 58 62 65 66 71 72 73 77 78 79 80

LIST OF TABLES & CHARTS

Name of the Table/Chart Corporate Structure Mineral availability & Contribution Mineral Details Product Profile Product & Uses Department Structure HRM Manpower Strength of the company Pay scale workmen Pay Scale Officers Department structure Time Office Department structure Mining Department structure Production Production Capacity Production Process Department structure Quality Control Department structure Stores & Despatch Department structure Internal Audit Department structure Research & Development Department structure Project & Maintanance Department structure Finance Department structure Medical Department structure Security Department structure Safety & Environment Department structure Civil Organisation Structure

Fig. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Page No 8 12 13 19 20 24 26 29 30 35 38 39 41 43 44 46 49 51 53 58 62 65 66 72

INTRODUCTION

Each and every organisation has its own importance in the economic wealth of the nation. Different organisation meets different needs of people by offering different products and services. Due to globalisation the world has changed into a global village. In this fast and changing business scenario, it is imperative for every entrepreneur to have a vivid understanding of the functional application of the new age business. As a part of the academic curriculum each student has to undertake an organisational study to get practical exposure. This study is conducted at Indian Rare Earths Limited, Chavara.

IREL Chavara is located 10 km north of Kerala


and 85 km from Trivandrum, capital of Kerala and 135 by road from Kochin is perhaps blessed with the best mineral sand deposit of the country. The plant operates on a mining area containing as high as 40% heavy minerals and extending over a length of 22 kms in the belt of Neendakara and Kayamkulam.

The deposit is quite rich with respect to Ilmenite, Rutile and Zircon and the mineral Ilmenite happens to be of weathered variety analysing 60% Titanium Dioxide (TiO2). The present annual production capacity of Chavara unit engaged in dry as well as wet (dredging / Upgradation) mining and mineral separation stands at 2,00,000 tones of Ilmenite, 1,14,500 tones of Rutile, 11,750 tones of Zircons and 10,000 tones of Sillimanite. In addition to that, the plant has facilities for annual production of ground Zircon called Zirflour and Microzir of the order of 6,000 tones and 300 tones respectively.

IREL Chavara is one of the oldest and leading


public sector undertaking under the Department of Atomic Energy (DAE). It is an ISO 14001: 2000; OHSAS 18000 certified company supplies beach sand minerals to the foreign and domestic market. It caters the requirements of developed countries like U.S.A, U.K, Germany, Australia, Japan etc. The major mineral products of IREL are Ilmenite, Rutile, Sillimanite and Zirflour.

CORPORATE STRUCTURE

OSCOM Plant Orissa

Mineral Division Chavara

Corporate & Registered office at Mumbai

Mineral Division Manavalakurichi

Rare Earths Division Udyogamandal

Fig No. 1

Chapter 1 RESEARCH DESIGN


A research design is a plan of the proposed research work. The research design simply a specific presentation of the various steps in the process of research. Design means adopting that type or technique which is most suited for the research and study of the problem. It is a plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance.

1.1 OBJECTIVE OF THE STUDY


The main objective of the study is to familiarise with the organisational functions in the organisation, there are many other minor objectives also. They are the following: To understand about how an organisations system is performing. To know about various departments and their functions in an organisation. To study the managerial activities performed in an organisation. To know how an organisation coordinates its activities. To get a practical exposure as the future manager.

1.2 SCOPE OF THE STUDY


The scope of the study is to know about the organisation, its structure, the functions performed by various departments and to know the overall performance of the organisation. The study will help the management students to get a practical exposure.

1.3 METHODOLOGY
Both primary and secondary data were used for this study.

1. Primary Data:The primary data can be obtained either through observation or through direct communication with respondents in one form or another or through personal interviews. There are several methods for collecting primary data. They are observation method, interview method, through questionnaire, through schedule etc. Here primary data were obtained from direct interviews made on with managers, officers and workers of the firm.

2. Secondary Data:Secondary data means data that are already available ie: - they refer to the data which have already been collected by someone else. Here secondary data collected from company brouchers, manuals and other records. were

1.4 LIMITATIONS OF THE STUDY


The study is limited to my experience and knowledge. Lack of availability of secondary data from published journals and reports. Secrecy of the organisation prevents them from giving some of the details regarding the firm. Employees were busy in their work so they could not give more information. Their may be errors due to the bias of the respondents. Time is a major limitation in the course of study.

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Chapter 2 INDUSTRY PROFILE


Rare earths elements series of chemical elements of the periodic table. The rare elements with atomic numbers 57 through 71. In the early years these elements were considered as rare elements and so they are called as rare earth metals. Later many elements in this group were found splendid but their name remained unchanged. The primary source of rare earth elements is greenish yellow coloured mineral sand, which is Monazite. Its availability in nature is confined to certain beaches and rock found in certain countries. The beaches containing the Monazite are found mixed with other minerals too. Most of these are ores for valuable metals. An ore is a mineral form which metal can be separated economically. These ores are Ilmenite, Rutile and Zircon. Ilmenite and Rutile forms the ore for Titanium, Zircon for Zirconium. Even though Aluminum bearing metal Garnet and Sillimanite are also found along with these beach sand minerals. But they are not commercially exploited for Aluminum production due to economic reasons. However Garnet and Sillimanite in their natural form are commercially significant. Ilmenite which is black in colour constitutes a major chuck of these minerals (60%) presence of these minerals makes the beaches appear black. These minerals are commercially known as beach sand minerals or heavy minerals.

The origin of beach sand is from rocks, which are rich with heavy minerals. This sand particle reaches sea through rivers. The sea level is not remaining constant. It is regarded that the sea level. It is now really 100 meters above what we had seen 20,000 years ago. This white sand seen at the beach area contains the main constitute as Quartz. This is lighter than black sand. As a result of movement of the sea this sand will erode away and black sand get deposited. The black sand thus deposited 100 years ago is mined and processed.

In the year 1789 Fr. William George (1761- 1817) discovered Ilmenite at knower in England and stated that this black sand contains some important metal. But he failed to discover which metal it was. After several time, in the year 1875 the Hungarian scientist Martin Heen Witch Klapporth found the same metal contains in the Rutile minerals about which Fr. William George mentioned. After a series of investigations are found those metals content as Titanium after Titan of Greek mythology.

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Technology developed over the year has made the beach sand minerals to be utilised in a variety of industrial and domestic applications. Monazite was mainly used in the gas mantle industry. After the advent of electricity its demand decreased in the gas mantle industry. Ilmenite and Rutile are used in high temperature refactory industry, ceramics industry etc. Zircon is used in foundries, ceramics, refectories and in the manufacturing of Zirconium chemicals, metals and alloys. Zirflour is used in foundries for high temperature castings. Garnet is used in the manufacturing of abrassive polishing glass, TV tubes, for sand blasting and for water filtration. The beach sand mining and processing industry has vast future because of their demand in nuclear industry too. In the present scenario of booming economics like India and china there is a huge demand for the beach sand minerals, Ilmenite in particular.

The current world production capacity of Ilmenite and other Titanium feed stocks for production of Titanium Dioxide Pigment, Titanium metal, Welding electrodes etc is used around 70 lakhs million tones per annum (tpa). Approximately half of this from beach sands and the balance from Ilmenite rocks mostly found in Canada and Norway. In view of the limited supply of natural Rutile its share of consumption in pigment production is rather small and 55% of its total availability of about 5 lakhs tpa is used in the non-pigment applications predominantly in the production of welding rods and Titanium metal. The present production capacity of pigment in the world is just above 4 lakhs tpa. North America is the largest producer with 37% of the global capacity. Europe with 32% capacity is the second largest producer and Asia-Pacific region with 21% capacity is the third. The balance 10% distributed among the rest of the world. India has the largest resources base of 278 million tones for Ilmenite. This is the single largest and Ilmenite and least exploited mineral deposit in the world. However 10% of this is only minerable resources base in India for other minerals are:Minerals Rutile Zircon Monazite Sillimanite Ilmenite In Million Tones 18 21 8 130 107 Fig No. 2 Contribution to the world 10% 14% 7% 25% 35%

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In India the installed production capacity for Ilmenite is around 5-2 lakh tpa (5-6% of global Ilmenite production) and the production of Ilmenite and Rutile during 2004-05 was over 3-5 lakh tones and 1300 tones respectively.

Presently there are few private organisations engaged in the mining and mineral separation of beach sand minerals. The Indian players at present are Transworld Garnet Private Limited, VV minerals, Earth Minerals Private Limited, Tuticorn Titanium Resources and value addition.

Ti Mineral Mineral feed stock > Ilmenite Manufacturing feed stock > Stag > Syn Rutile TiO2 Pigment > Rutile GR > Antase GR Ti Sponge Ti Mill Productions Fig No. 3

TiO2 50-60

USD/Tones 200-250

87 93

575 878

99.8 99.8 99% Ti 99% Ti

3666 3333 11111 22222

It can be seen that value will be increased about 100 time through value addition natural Ilmenite.

Key success for the beach sand mineral industry are:

Increase the Ilmenite capacity to reach economic scale of production. Value addition project in minerals and rare earths compound. Initiate action to develop new mining areas. Forward integrate through stake in world leader in pigment Industry like Tinfoss, DuPont or selling up a pigments plant. Explore other mining options in neighboring countries.

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COMPANY PROFILE
On August 18, 1950 Indian Rare Earths Limited (IREL) was incorporated as a private limited company jointly owned by the govt. of India and Govt. of Travancore, Cochin with the primary intention of taking up commercial scale processing of monazite sand at its first unit namely Rare Earths Division (RED) Aluva and Kerala for the recovery of thorium.

After becoming a full fledged central govt. undertaking in 1963 under the administrative control of Department of Atomic Energy (DAE), IREL took over a number of private companies engaged in mining and separation of beach sand minerals in southern part of the country and established two more divisions one at Chavara, Kerala and other at Manavalakurichi(MK), Tamilnadu.

After a gap of 20 years IREL commissioned its largest division called Orissa Sand Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units with corporate office in Mumbai and produces/ sells six heavy minerals namely Ilmenite, Rutile, Zircon, Monazite, Sillimanite and Garnet as well as various value added products IREL is making profit for the last 6 years with its sales turnover reaching a peak exceeding Rs: 2600 millions in 2000-01, with export component of above Rs: 1000 millions.

Chavara plant is engaged in the processing of beach deposits available on the coastal belt of Neendakara- Kayamkulam.

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HISTORY OF THE ORGANISATION


IRELs history should not be narrated without mentioning the name of the Germen chemist Mr. Herr Schomberg who has realised that the shining yellowish brown particles sticking to coir, a coconut fiber shipped from India (1909) contained Monazite.

This sparkled the discovery of vast deposit of monazite a rich source of rare earths a group of elements with a wide variety of uses in industry and science. A few plants were operating at Chavara and Manavalakurichi for the separation of monazite.

1948:- The govt. of India setup atomic energy commission under the chairmanship of Dr: Homi Bhabha. The export of Monazite was stopped and the possibility of setting up a facility to process the beach sand mineral for the production of Rare Earths was examined. 1950:- IREL was incorporated at Bombay 1951:- IREL become the full-fledged govt. undertaking under the Department of Atomic Energy and commissioned construction of its rare earths plants at Udyogamandal in Kerala. 1952:- Rare earth plant was dedicated to the nation on Dec 24 by the Jawaharlal Nehru. 1955:- Opening Thorium factory of Bombay. 1965:- Opening mineral division at Kollam in Kerala state with manufacturing facilities at Chavara in Kerala and Manavalakurichi in Tamilnadu and a giant mineral sand separation and synthetic Rutile plant at Chatrapur in Orissa.

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VISION OF IREL
1. To be a leading supplier of beach sand minerals from Asia by supplying 10% of

the world demand for beach sand minerals over the next 7-10 years. It would be achieving by maximum utilisation of existing capacities, new capacity addition, capturing major portion of the incremental growth in the global TiO2 feedstock demand and by developing competitive value added Rutile, Zircon, Sillimanite and Garnet products that make handsome contribution to revenue and profits. 2. To become the preferred rare earths products supplier (Producer and/ or Marketer)

for domestic customers to ensure long term sentences and profitability of rare earths business and to achieve adequate efficiency in monazite processing as long as it is necessary / worthwhile.

MISSION OF IREL
1. To harness beach sands in an environmentally and socially responsible manner for

efficiently producing minerals and their traditional and innovative value added products of world class quality that are used to make increasingly superior/ novel products required by customers. 2. To play a dominant role in developing domestic rare earths market by producing

and/ or marketing the quality value added products to realise maximum potential or rare earths in a range of applications. 3. To build a professional, creative and committed workforce and nurture an

environment that fosters learning, sharing and development.

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QUALITY POLICY
IREL is committed to provide products of consistant quality to their satisfaction of the customers through Quality Management Systems (QMS) implementation.

TECHNICAL EXCELLENCE
IREL uses state of art technology in mining and mineral processing. The rich experience and professional expertise of people who are one among the best in the industry and strict compliances to quality standards has enabled IREL to remain as the leading supplier of heavy minerals to the nation and abroad. IREL is always been driven y innovation and sound manufacturing practices, be it in product, technology or process.

AWARDS AND ACHIEVEMENTS


IREL has fairly good record in its performance during the past decade. From 1997-98 onwards all out team efforts was taken up to achieve name plate capacity for the mining and mineral separation plants in all the three locations, total sales turnover, share of export and profit after tax started improved by leaps and bounds and the company recorded increasing profit since then. In addition to production and financial

performance, IREL has excelled in the areas of marketing, safety and human resources management. In recognition of the companys efforts, scope awarded prestigious silver Trophy of SCOPE award for excellence and outstanding contribution to the Public Sector ManagementSpecial turn around category for the year 1999-2000. During the year 2006-07 IREL posted all time high sales turnover exceeding 3600 millions with export component over Rs:1000 millions & all time high profit before tax of Rs:1000 millions.

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Following are the list of awards & recognition won by IREL during the last ten years.

EXPORT AWARDS
1. Chemical and Allied Products Export Promotion Council (CAPEXIL) special Export award from processed Mineral group for the year 1996-

97,98,99,2000,01,02,03,04,05,06. 2. Indian Chemical Manufactures Association Certificate of Merit for ISO 9000

certification for 1997, ISO 9002 certification for 1998. 3. Certificate of merit from CHEMEXCIL under the category of basic inorganic and organic chemicals for outstanding performance for the year 2000-2001 including Agrochemical Panel.

SAFETY AWARDS
1. 2. 3. AERB safety awards won by Chavara Unit (Winner) for the year 2003. Greentech awards won by Chavara Unit (Winner) for the year 2003. Safety award from National Safety Council, Kerala chapter won b Chavara Unit (Runner) for the year 2003. 4. National Safety Award (Mines) for lowest Injury Frequency Rate won by Chavara Unit (Winner) fir the year 2003. 5. Apart from above national level safety Awards companys Mineral Separation plants namely Chavara has won many state level awards.

OTHER AWARDS
1. Silver Trophy of SCOPE award for excellence and outstanding contribution to the Public Sector Management _ Special Turn around category for the year 1999-2000. (SCOPE - Standing conference of Public Enterprises) 2. Enterprise Excellence Award 1999-2000, 2000-2001 from Indian Institute of Industrial Engineering. 3. Hindi Rajbhasa Shield for the year 2000-2001 for the best amongst PSUs under Department of Atomic Energy.

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FUTURE PLAN
In the light of new changing economic scenario IREL is poised to adopt a two pronged strategy namely consolidation and expansion of the operations and joint venture for value addition and new production facilities. Company is poised to reach greater heights in the years to come. The phase I expansion at Chavara is nearing completion and the expansion at MK is expected to takeoff soon. Expansion of capacity at OSCOM is also progressing. I addition to expansion of mineral separation plants, the company is planning to restart the manufacture the rare earths products in big way with implementation of Monazite Processing Plant (MoPP) at OSCOM which is likely to commence commercial operation by 2009. The successful completion of expansion activities will bring forth a new era of higher capacity and profits and the company it is hoped will attain the pinnacle of glory. The company will continue to be one amongst the most successful PSUs.

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PRODUCT PROFILE
Product combination the company offers to the target market. means to the goods and services

Product Ilmenite

Specification TiO2 - 58%

Specific Gravity 4.45- 4.54

Density 2600- 2630

Packaging In bulk HLP bags with Polithine liner In bulk 50 kg HLP

Rutile Q Grade Zircon Special Grade Sillimanite Q Grade Al2O3 3.20-3.25 1950-2050 ZrO2 - 58% 4.60-4.70 2900-3000 TiO2 - 95% 4.18-4.24 2630-2650

bags with Polithine liner In bulk 50 kg HLP bags with Polithine liner 50 kg jute bags 50 kg laminated HLP

Zirflour

ZrO2- 64%

1800-1850

bags with Polithine liner

Microzir

ZrO2- 63.5%

Liner 20 kg laminated Polithine bags

Fig No. 4

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Products Ilmenite Rutile Zircon sand Zircon Flour Microzir Sillimanite Garnet Monazite Composite RE Chloride Thorium Nitrate

Uses Manufacturing of TiO2 pigment synthetic Rutile and Titanium slag Fluxes for welding electrodes Ceramics, Refractories and foundries. Ceramics and foundries. Pacifier in Ceramics Refractories Abrasive for sand blasting, water jet cutting and glass polishing. Raw material for production of Rare earth Component Catalyst, Paint driers, basic raw material for Misc. metal which used as lighter frint & mantles. Gas Mantles

Fig No. 5

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CUSTOMER PROFILE
Prime customers of the major products of the company are the following:A. ILLMENITE:1. 2. 3. 4. 5. B. RUTILE:1. 2. 3. 4. 5. C. ZIRCON:1. 2. 3. 4. 5. D. ZIRFLOUR:1. 2. 3. 4. 5. FOSECO INDIA LTD., PUNE. VIDEOCON NARMADA GLASS, BHARUCH. H & R JOHNSON (I) LTD., MUMBAI. NAHAR COLOUR & COATING LTD., UDAIPUR BHANU CERGLAZE P.LTD. THIRUPATHI MICROTECH (P) LTD., UDAIPUR. RUBY CERAMICS PVT LTD., PUNE. ASTRON CERA, SALAL DIST, SABARKANTHA. JOHNSON MATTHAEY CERAMICS INDIA LTD, HOSUR, TN FOUR FIELD, PUNE. ESAB INDIA LTD, CHENNAI/ KHARDAH. ADOR WELDING LTD., MUMBAI/CHENNAI. D & H SECHERON ELECTRONICS (I) LTD., INDORE MARUTHI WELD LTD., GURGAON. ROYAL ARC ELECTRODES PVT. LTD.VASAI, THANNE DIST. KOCHIN MINERALS AND RUTILE LTD. KOCHI. DCW LTD. TUTICORN. TRAVANCORE TITANIUM PRODUCTS LTD. KILBURN CHEMICALS LTD. TUTICORN. KOLMAK CHEMICALS LTD. KOLKOTA.

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E. SILLIMANITE:1. 2. 3. 4. 5. MAITHAN CERAMICS PVT. LTD., CHIRKUNDA, JHARKHAND MANISHRI REFRACTORIES, CUTTACK. ASSOCIATED CERAMICS, CHIRKUNDA, JHARKHAND. TATA REFRACTORIES, BELPAHAR, ORISSA. ASSOCIATED CEMENT COMPANIES LTD., NAGPUR/KATNI.

F. RARE EARTHS CHLORIDE:1. 2. 3. 4. 5. CIBA SPECIALITY CHEMICALS, UDYOG NAGAR, GUJRAT. DHIRAJ INTERMEDIARIES P LTD., VAPI, GUJRAT. RAVESHIA PIGMENTS LTD., VAPI, GUJRAT. ANUPAM COLOURS, VAPI, GUJRAT. BERGER PAINTS INDIA LTD., VAPI, GUJRAT.

G. THORIUM NITATE:1. 2. 3. 4. 5. FARGO MANTLE PRODUCTS LTD., MUMBAI. MAKANI PRODUCTS LTD., MUMBAI. B.K SHAW INDUSTRIES (P) LTD., KOLKATA. A.D.C MANTLE MANUFACTURING CO., MUMBAI. ELITE INDUSTRIES, MUMBAI.

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DEPARTMENTS
1. HUMAN RESOURCE DEPARTMENT:IREL Chavara takes place its highly motivated and trained human resource that has maximised its performance and their by its growth and profit. Morale of the employees remains facilitating smooth working of the company. Skill requirement related to different disciplines are identified and training programs and workshops are efficiency of the human resource. DEPARTMENT STRUCTURE

Unit Head

General Manager HRM

Dpty. Manager Section Head

Senior Manager (HOD) Medical

Dpty. Admin Officer Time Officer

Manager Security

Medical Personnel

Senior Asst. Time Officer

Security Guards

Sec. Head Training

Sec. Head Legal

In charge Welfare

Subordinate Staff/ Clerical Staff

Fig No. 6

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HR department lead by General Manager and

two

Deputy

Managers assisted him. The Security Department and Time Office are working under the General Manager of HR Department. Four Deputy Officers and 14 clerical staffs are working under the Deputy Managers. People are the most important resources of an organisation The main functions of HR Department are:1. 2. 3. 4. Administration Industrial Relations Training and Employee Welfare Time Management

1.ADMINISTRATION

The administrative functions of HR department include a. b. c. d. e. f. g. Manpower planning Recruitment policy Performance appraisal Salary and wages administration Industrial discipline Maintaining service book and personnel file Maintaining reservation register

a) Manpower Planning:Manpower Planning is important for any type of

organisation. It is the process which determines how an organisation should move from its current manpower position to its desired manpower position. For this purpose, the HR department at IRE collects feedback from all department inorder to identify their manpower requirements of various departments and then the HR department crosscheck whether there is any overstaffing in any of the departments. If these departments have excess of staff, they are transferred to those departments where there is a shortage. The company considers the number of employees presently as significantly high. There is a problem that sometime the VRS can lead to scarcity to workers for particular job. At IREL using the process of multitasking the employees are

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Organisation Study on IREL Chavara

made fit to work in other function also. By the VRS scheme more than 100 employees have been sent out within span of 3 years.

Manpower of the company There are 491 employees in the company. Total executives are 105 and workmen are 380. The number of contract workers are 632. Details showed as below.

MANPOWER STRENGTH Male Executives Workmen Total 83 355 438 Female 22 31 53 Total 105 386 491

CONTRACT WORKERS Loading Civil Mining Bagging Canteen Total Fig No. 7 b) Recruitment policy:Recruitment in Chavara Plant is done through local employment exchange for find out prospective workers. The office staffs and managers are recruited by the Head Office through tests and Interviews. 65 85 235 218 29 632

Recruitment Criteria For the recruitment of candidates, the candidates should be above 18 years of age. The following steps are taken before the recruitment of employees. They are govt. guidelines, the recruitment only through employment exchange, notification in internet and

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Organisation Study on IREL Chavara

advertisement in newspaper should be needed. Application will be scrutinised with the help of a selection committee and eligible candidates are called for an interview.

Selection:The steps followed in the selection process are 1. 2. 3. Inviting and receiving applications Scrutinising the applications Selection Test: - The selection tests of employees are a. b. c. d. Aptitude Test Personality Test Achievement Test Trade Test

Appointment will be based on certain criterias like they are medically tested after that induction training should be given. After training for a period of one year or more they will be put as permanent employees. c)Performance Appraisal:Appraisal is the evaluation of work quality or merit. In the case of IRE performance appraisal is a systematic evaluation of employees by supervisors or other familiar with their performance.

1.

Straight ranking method:Under this method men as a whole are compares from other men

and ranked on the basis of overall performance. 2. Grading method:Under this method certain categories of work such as excellent, very good, average, poor, very poor are established and defined actual performance of each employee then compared with the grade definitions and ranked to evaluate the performance of the employees. Last grade employees that are 8 & 9 grade, their work performance have been observed by supervisors. But in the case of executives MBOs are observed their performance and efficiency. In IRE performance appraisal is done on a yearly basis to asses the performance of the employees. The appraisal is done by three persons.
th th

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Organisation Study on IREL Chavara

1. 2. 3.

Reporting Officer. Reviewing Officer. Evaluating Officer.

Firstly the employees themselves do an appraisal and this is given to the reporting officer and the person who has done the Key Appraisal together identifies the Key Result Areas and weightage is allotted to each one of them. This is usually done at the beginning of the year. The reporting officer checks whether the result areas set where met by the appraisal or if their any deviation from it. And this is to be sent to reviewing officer and then evaluating officer. Various other factors such as the appraisers managerial skills like job knowledge, interpersonal skills are also included and guided and that is allotted in the appraisal and there promotion is based solely seniority.

Promotion:In IREL promotion is given seniority based or based on experience. Promotion is a transfer of an employee to a job that pay more money or that enjoys some preferred status. Sometimes the company is considering the length of the service, education, training courses completed, previous work history etc. Sometimes the company is also considered ability, hard work, co-operation, honesty etc.

Condition for getting Promotion:1. 2. 3. Average leave should not exist more than 15 days. Any disciplinary actions should not be taken during the service of periods. Should not apply for job in any other organisation. These candidates are eligible for getting promotion. d) Salary and Wages Administration:Wages in the widest sense means any economic

compensation paid by the employer under some contract to his workers for the service rendered by them.

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Organisation Study on IREL Chavara

Acts Followed: 1. 2. 3. Workmen Compensation Act 1923 Sec 2(m). Payment of Wages Act 1936 Sec 2 (VI) Payment of Wages Act 1948

PAY SCALE

The monthly remuneration received by each of the employees including system of compensation.

FOR WORKMEN

Scale of Pay:Grade W-I W - II W - III W - VI W-V W - VI W - VII W - VIII W - XI W-X Scale of Pay Rs: 4085-70-6885 Rs: 4110-80-7310 Rs: 4120-90-7720 Rs: 4160-100-8160 Rs: 4185-110-8585 Rs: 4270-120-9070 Rs: 4325-135-9725 Rs: 4420-155-9845 Rs: 4465-180-9865 Rs: 5750-190-10500 * Fig No. 8 * -Only in RED, Aluva

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Organisation Study on IREL Chavara

FOR OFFICERS

Scale of Pay:Code E-0 E-1 E-2 E-3 E-4 E-5 E-6 E-7 E-8 E - 8(a) Designation Deputy Officer Officer Senior Officer Deputy Manager Manager Senior Manager Deputy General Manager General Manager Chief General Manager Executive General Manager Directors Chief Managing Director Pay Scale 6550-200-11350 8600-250-14600 10750-300-16750 13000-350-18250 14500-350-18700 16000-400-20800 17500-400-22300 18500-450-23900 20500-500-26500 21500-550-27000 22500-600-27300 25750-650-30950

Fig No. 9

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e) Industrial Discipline:-

Disciplinary actions are taken in the HR department. Procedure for disciplinary actions is on receiving a complaint about a particular employee, explanation is asked. Employee will give an explanation before 15 days. If the explanation is not satisfactory he will be given a charge sheet and will also conduct a domestic enquiry. For this purpose an enquiry officer is placed. After conducting the enquiry the report should be sent to the disciplinary committee and if necessary certain punishment may also given.

2. INDUSTRIAL RELATION

Most of the disputes will be settled by the company and trade unions. If it is not cleared, they can approach to the government. The Trade Unions active in IRE are:1. 2. 3. 4. 5. 6. United Trade Union Congress (UTUC) Indian National Trade Union Congress (INTUC) All India Trade Union Congress (AITUC) Travancore Mineral Workers Union (UTUC (B)) Indian Employees Rare Earth Federation (CITU) Indian Rare Earth Mazdoor (BMS) These are the recognised unions. There are some criteria for recognizing a union; the union will have 15% of employees as their members. Also some participative forum is present; they are plants committee, safety committee and House building committee. These committees will have the equal participation. 3. TRAINING & EMPLOYEE WELFARE

Training and Development:Training is the act of increasing the knowledge and skills of an employee for during a particular job. Indian Rare Earth Ltd adopted various techniques of training for increasing the mass productivity. The training program is restructured regularly in IRE. The objective of training and development in IRE

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1. 2. 3.

Increase the efficiency Increase the moral of the people Reduce the absenteeism

Procedure for Training 1. Identifying the training needs The company identifies the training needs through 3 ways: a. Organisation Analysis b. Task Analysis c. Man Analysis 2. 3. 4. Executives themselves will discuss the training needs Charting out the training plan for a period Based on feedback individual training is given

Training Methods IRE has mainly four types of training methods. 1. 2. 3. 4. In-house Training External Training Vocational raining First Aid Training

The training method can be grouped on the basis of level of personnel in the organisation.

1. In-house Training: - Otherwise known as on the job training. In this method expert from outside come to the organisation and give training. 2. External Training: - Also known as off job training is given outside the organisation. 3. Vocational Training: - At least 20% of the employees should be trained every year. 4. First Aid Training: - 30 people in one batch and give them training.

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Employees Welfare:Two types of employees welfare are present in IREL. They are 1. 2. Statutory welfare and Non Statutory Welfare

Gratuity, Provident Fund, Pension, Canteen, Medical Allowance are included in the statutory welfare. Festival Allowance, LTC, Recreation, Tour Facilities are included in the non statutory welfare. Also the IREL give some kind of allowances. They are

Shift Allowance For employees working in shifts expect general shifts will get an allowance as follows 1st Shift (8 am to 4 pm) 2nd Shift (4 pm to 12 pm) 3rd Shift (12 pm to 8 am) Rs: 10/day

Rs: 15/day Rs: 25/day

Hard Shift Allowance Since the plant handles sand for its production, it creates a dust in the atmosphere. Considering this hardship in work every employees of Chavara plant gets Rs: 135/month as hardship allowance.

Uniform Allowance Every employee is provided with two pairs of uniform in every year. Rs: 100/ month as washing allowances is granted for all employees.

Transportation Allowance Every employee (except officers) gets Rs: 700/- per month as conveyance allowance. Officers will get 10% of their basic pay as their Transportation Allowance.

Canteen A round the clock canteen is provided for the employees. Company will charge Rs: 6/day from each employee. The canteen is under the control of company.

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Attendance Bonus To increase attendance in the company gives annual bonus of 12 days wages for every employee who have minimum 268 days presence.

Production Incentives Every employee gets an amount of Rs: 525/ year as Production Incentive from the profit.

Leave facilities available in IRE

Casual Leave Sick Leave

15 days/ year 10/year (workers) 10 full/20 half (Officers)

Earned Leave Surrender Leave -

33 days (It can be maximum of 300 days) Each employee can surrender maximum 90

days/year or 75% of earned leave.

Other Benefits 750 ml milk/ day 4 pears soap/month One Turkey or Towel/year Shoes (1 pair)/ year One Umbrella/year House loan up to 4.5 Lakhs Medical Facilities Educational Allowances to workers children Festival Allowance Group Insurance Scheme Holiday Facility Leave Travel Concession (LTC)

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4. TIME OFFICE There is a full fledged office headed by Deputy administrative officer. It follows a punch card system. Different allowances of employees are given and it is mainly depend on attendance. It is providing according to the report from the time office. The time office is working under the HRM department. The main function of this department is to maintain attendance records, leave and service records etc. The various allowances, attendance bonus all these records are maintained by the time office department. Also yearly attendance bonus is given to the employees.

Attendance of 265 days/ year Attendance of 262 days/ year Attendance of 243 days/ year

12 days salary 10 days salary 07 days salary

Structure of the time office as follows

General Manager HRM

Dpty Admin Officer

Senior Assistant

Assistant Clerk

Attender

Fig No. 10

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For recording attendance punching system followed here. The attendance register usually keep in time office. The time office collects attendance from concerned authority also and match with the punching system and avoiding swapping. Time office has three centers for punching in convenience of employees. In mining area, in dredging plant also keep mechanical punching machine. For the purpose of salaries the time office is sending the records to the finance department. If the finance department asks for any clarification they will do it.

TRANSFER POLICIES OF IREL, CHAVARA

Transfer is the movement of an employee from one job to another without involving any substantial change in his duties, responsibilities. The company is following 4 methods.

1.

Production Transfer:When a particular department or job is faced with the

pressure of works, its strength may supplement through from other departments. Such transfers are generally made where any department is overstaffed and other is short of manpower. 2. Replacement Transfer:A replacement transfer is the transfer of a senior employee to replace with a junior employee or new one. 3. Shift Transfer:When units in shifts, employees are transferred from one shift to another on similar job. 4. Department Transfer:Transfer from one department to another within the plant or with in the organisation.

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2.

MINING DEPARTMENT:In IRE the raw materials for production process are collected through

mining process. The production process starts with the collection of beach sand from various places. For collecting this beach sand IRE uses the following two methods: Sea Washing and Dredging.

SEA WASHING Raw sand is collected from sites where deposits are occurred due to natural beach washing. Presently IRE owns two sites one at Vellanathuruthu/Ponmana and one at 132 mining area. There is a heavy mineral deposit over a length of 22.5 Km. They are found over or coastal belt having an average width of 800 meters. The sea waves deposits the minerals sand on the beach line and it is collected. Then it is send to the mineral separation plant.

DREDGING Presently IRE, Chavara have two floating dredges (Material Recovery Plant (MRP)) at Karithura and Puthenthura. These plants are constructed with the help of Neumann Equipments Private Limited Australia. Each plant was cost about Rs: 10 Crore as establishment cost.

The plant DWUP used for the mechanised recovery of minerals from the beach sand. The DWUP consist of a floating dredging plant operating hydraulically and electrically which could be moved from one place to another based on the requirement. The plant is floating in an area having a water depth of 6 meters. The sand along with water in the form of slurry (a mixture of sand and water) is pumped to the heavy Upgradation equipments. The equipment consist of a series of transfer bin rotating screens called Trommer, Spiral Separators, Hydro cyclones, pumps etc all being electrically operated. The DWUP can dredge about 40 to 60 tones per hour. The raw sand having an average at 40% heavy minerals is fed to the floating plant and updates it to 85 to 90% mineral content. The waste sand (Quarts) from DWUP is used for backfill the dredged area.

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DEPARTMENT STRUCTURE MINING

HOD

Section Head Mining

In-charge Survey

In-charge DWUP

In-charge DWC

DWUP Operators

Mining Personnel

Fig No. 11

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3.

PRODUCTION DEPARTMENT:The act of making goods and services is called production. In everyday

speech Production refers to the act of creating something production involves the physical conversion of raw materials into tangible goods.

In IRE raw sand is collected through mining process .The sand is filtered through spirals, cones and jigs to produce a bulk concentration of heavy drying, screening, electromagnetic and electrostatic processes and used for separation. Minerals found in coastal areas are collected either manually or mechanical means, productions starts from the mining process. DEPARTMENT STRUCTURE PRODUCTION HOD PRODUCTION

SH (Production)

SH (MIS)

Shift In-Charge

SH (Process Control)

Shift Engineers

Production Dept Personnel

Fig No. 12

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MINING PROCESS The mining and processing of beach sand are achieved with a good mixture of modern mechanical devices and manual labour. Beach sand is collected from the surface of a depth of a meter with the help of dredgers. For a processing of beach sands, the difference in electric conductivity, magnetic susceptibility and specific gravity of their constituents are taken into consideration. The beach sand is treated by well gravity methods using spiral, cones and jigs to produce minerals. IRE collects raw sand in two different ways: 1. Sea washing or beach washing 2. Mechanical dredging

MINERAL RECOVERY PLANT The mineral recovery plant consists of a floating dredging plant which could be moved from one area to another. This is called floating mineral recovery plant. The plant is placed in an area which has a water depth of 9 meters. The sand along with water is sucked into the main unit. First the mixture is send to a storage tank called Trammel. Then it is sending for separation. The waste sand and some quantity of water is pumped out. The mineral content is pumped from the MRP to concentrate Upgradation plant. The MRP dredges about 40-60 tones per shift. CONCENTRATE UPGRADING PLANT (CUP) The raw sand collected from different sources had different composition. They are further upgraded using the CUP. In the Concentrate Upgrading Plant enriches the concentrate from various sources to above 90% heavy minerals using spiral separators making use of gravity techniques. MINERAL SEPARATION PLANT (MSP) In the mineral separation plant individual minerals are separated making use of the following four properties of the minerals namely 1. Electrical conductivity Electrostatic separation is used in electrical conductivity.

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2. Magnetic Susceptibility High and low intensity magnetic separators used. 3. Density Difference Floater separation. 4. Surface Property Froth floatation.

The concentrate from concentrate upgrading plant (CUP) having uniform composition with above 90% heavy minerals content is dried using Fluidised Bed Drier (FBD). This is then subjected to electrostatic separation using different type of electrostatic separators. There by it is separated into two fractions namely conducting and non-conducting fractions.

PRODUCTION CAPACITY OF CHAVARA PLANT


Ilmenite Rutile Zircon Leucoxene Monazite Sillimanite Zircon flour Fig No. 13 15000 tones 9000 tones 14000 tones 600 tones 600 tones 8000 tones 6500 tones

ILMENITE Mainly used in the manufacture of Titanium dioxide, a white pigment by sulphate process also used in the production of synthetic Rutile and for the production of Ferro Titanium products. RUTILE Rutile used for coating of welding electrodes and also for the production of Titanium dioxide pigment by the chloride process and for the production of Titanium Tetra Chloride for the production of Titanium metal and sponge.

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SILLIMANITE Sillimanite mainly used in the manufacture of high temperature refractory. It is also used in ceramic industry. ZIRCON Zircon is used in foundries, ceramics and refractory. It is also used in the manufacture of zirconium chemicals, metals, alloys etc. ZIRCON FLOUR Zircon flour is used in foundries for high temperature castings. MONAZITE Monazite is used for the production of Thorium and rare earths base products.

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PRODUCTION PROCESS
Beach wastes Conveyors Screens 30 T Bin

Middling

Primary Aspirals

Cup Spirals

Seavenger Spirals

Waste

Middlings

Tail

Plant QIL

Conducting

IRMS

ILMENITE

CBMS

IRMS

HTS IRMS To NC Circuit

Rutile

IRMS

Floatex

Spirals

Fig No. 14

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4.

QUALITY CONTROL DEPARTMENT:IREL Chavara has got ISO 9001: 2000 Quality Systems established for

mining, manufacturing and mineral products. One of the primary functions of the quality control department is to ensure quality products according to customer requirements. They harness beach sand in

environmentally responsible manner to produce minerals and innovative value added products, which are used to make novel products required by customers. Secondly, they are responsible for maintaining consistant quality of products to the satisfaction of the customers through quality management system

implementation. They also aim at further improvement of product, technology or process. The quality control department is also responsible for maintaining consistency in quality of raw materials during the processing, intermediate and finished product stages. They make use of chemical and mineralogical testing methods in each stage. In addition to these functions this department also conducts research and development activities to support flow shed development work and for solution to process related problems. DEPARTMENT STRUCTURE QUALITY CONTROL Section Head Q.C

Deputy Manager Chemical Laboratory

Senior Scientific Officer

Scientific Officer

Deputy Scientific Officer

Attenders Fig No. 15


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FUNCTIONS

To ensure that raw materials, in process and finished products confirms to specified requirements holding compliance with environment , health and safety requirements. Ensuring compliance to health, safety and environmental requirements

INSPECTION AND TESTING PROCESS DETAILS Raw Sand:1. The DWUP and HUP output and tailing are tested for total heavy mineral content as detailed in quality plan. 2. The raw sand feed to the QIL plant ie the dried HUP output is analysed as per quality plan. 3. The raw sand being naturally occurring, the specifications are only desirable values. The variations in quality of raw sand do not affect the quality of final products. So no reduction of raw sand is resorted to, even if the analysis results are not as for the quality plan. 4. These tests are carried out only to make proper adjustments of the process parameters to set the final product of specified quality. In-Process Inspection:In-process inspection of certain intermediate fraction as detailed in the quality plan are carried out as per quality plan. These process fractions are not rejected even if the analysis results do not confirm the desireable specifications. The inspection is only for subsequent adjustments in the process parameters.

Finished Products:1. The products under tests are identified by a yellow board indicating the

date, shift and number of bags. Those products passed the tests are identified by a green board indicating date, shift and number of bags and rejected are identified as red board indicating FOR REWORK.

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2.

Inspection and testing of finished products are carried out and records in

the respective record as per quality plan. Only products confirming to the quality as detailed in the respective quality plan are taken in to stock. Rejected products are maintained with authorisation of HOD (Q.C). Inspection and test record clearly indicate whether the product is accepted or rejected.

5.

STORES AND DESPATCH DEPARTMENT:The stores act as a store and supply chain, keeping inventory of the

product produced on the hand and supplying requisite raw materials to the manifold department on the other hand. All the items in6 the IRE properly stored by this function area, including finished product inventory. It stores furnace oil, machine parts, office equipments and stationary etc.

DEPARTMENT STRUCTURE STROES & DESPATCH

Deputy G M

Manager Stores

Stores Officer

Stores Officer

Clerical Staff

Clerical Staff

Worker

Worker

Fig No. 16

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Stores fall under two categories 1. 2. Capital Items Consumable Items Capital items, which give return for long term revenue items or a consumable item means that which are consumable only for a short period. Procurement of items of capital nature is to be made only after the approval by the competent authority duly verified by internal auditors with prior conclusion in the capital budget. Stores action is responsible for arranging procurement of all items or purchase requisitions shall from the basis for arranging procurement or other departments, complete in all respects and duly approved by the controlled authority. Stores are purchased indigenously and from foreign suppliers through the adoption it secure the most competitive tendering system is adopted to secure the most competitive tendering, the most competitive rates and eliminate chance of favour. The worth of production in the plant is currently between 6-7 Crores. Once in every 3 months inventory statistics is prepared and send to the head office in Mumbai. Stores follow Bin card and Cardex System. This department has three major functions as follows RECEIPT:The consignment items are properly verified with the receipts and requested the particular department to made inspection on each items. STORAGE:The received items are stored in proper locations and preserve them until the issue. Each item has its own Bin card. The quantity received, material issued, total remaining are noted in the Bin cards. ISSUE:The issue made in first in first out method. After the receipt of the material internal note from the department, the issues are made and same is recorded in the Bin card.

INVENTORY CONTROLE Under the stores department the inventory control function is done. If

excess stock is obtained, it is properly informed to the marketing department to promote sales and if any shortage obtained it is properly informed to production department to increase the production. Usually ABC inventory control methods is adopted in IRE Chavara for control of inventories. The principle types of inventories are:Caarmel Engineering College, Pathanamthitta

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Y Y Y

Raw Material & Supply Goods in Progress that is work in progress Finished Goods

For reduction of inventories four steps are taken in the Stores and Despatch Department. They are doing computerization, codification, standardization and value addition. All the process in stores departments are computerised and inventory management software is used for this purpose. Coding is given to all inventories. For this, alphanumerical code is used. Material coding is help to realise what kind of inventories are stored. And location coding helps to find out where it is stored. By the use of standardisation, physical verification of inventories are to be done and to be check whether the invoice number and purchase order are equal.

DESPATCH SECTION Despatch Section controls the transportation of the finished products o the outside company. When a customer made a complete settlement of money for purchasing of a particular product from the company the marketing department placed a delivery order to the despatch department. The despatch department then prepares an invoice and gave a copy to the customer. This department also prepares gate pass and state government declaration sheet.

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6.

INTERNAL AUDIT DEPARTMENT:-

Chief General Manager is directly looking after the functioning of Internal Audit Department. Manager (Internal Audit) is the head of the department. There are internal audit officers and administrative officers other than accountants and clerks working in this department.

Internal audit department is not regular department in many of the companies. But in IREL this department is holding special privilege of auditing in to every accounting matters of IREL. It is functioning in accordance with finance department. It is necessary to get audit approved from internal audit department for the finalisation of anything concerned to accounts. The company management is approving all other accounts in the recommendation of this department.

DEPARTMENT STRUCTURE INTERNAL AUDIT

Manager

Internal Audit Officer

Clerks

Accountants

Fig No. 17

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FUNCTIONS

1. 2. 3. 4.

Auditing all the financial transactions of the company. Taking corrective measures to rectify audit objections. Making report to Chief General Manager and Board of Directors. Make sure that every deeds of finance department is in accordance with the accounting policies of the companies.

5. 6.

To participate in the functioning of store purchase committee. To check the legal validity of the financial matters of projects committed by IRE Ltd.

All the relevant policies of the company are as the basic policies of this department. Internal Audit Department is auditing the accounts quarterly and sending report to Chief General Manager regularly.

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7.

RESEARCH & DEVELOPMENT DEPARTMENT:The company has a well equipped Research and

Development facilities to support flow sheet development works and for solutions to process related problems. The laboratory is equipped with lab models of Magnetic Separator, Tension Separators, Wet Shaking Tables and Froth Floatation Equipment etc. High

DEPARTMENT STRUCTURE RESEARCH & DEVELOPMENT

HOD R & D

Section Head

R & D Dept Personnel

Fig No. 18

FUNCTIONS 1.

New product development. New compound development. Selection & Evaluation of alternative method. Testing of new products. To analysis and assist plants in problem solving. Ensure quality of raw materials and finished products. Maintain Quality. Research & Development attempts.

2. 3. 4. 5. 6. 7. 8.

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The department has well mentioned quality objectives and well practiced quality assurance, quality improvement program. The department uses mineralogical testing methods for maintaining consistency in quality of raw materials, finished products and work in progress. The checking of minerals quality is done on a batch basis.

8.

PROJECT & MAINTANANCE DEPARTMENT:-

This section is looking after the projects and maintenance of technological aspects of affairs of the company. This is a section in which mechanical experts are working on different projects. This section takes over the responsibility of various projects taken up by IRE Ltd management. They are making efforts to expand the area of performance of the company.

FUNCTIONS

1.

To carry out preventive Maintenance to ensure continuous capability and to attend breakdown maintenance if any.

2. 3. 4.

Projects on mining area of IREL. Projects on technological development. Project on quality assurance.

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DEPARTMENT STRUCTURE PROJECT & MAINTANANCE DEPARTMENT

Unit Head

HOD Maintanance

SH
HUP

SH
Elec MSP

SH
Auto

SH
Elec HUP

SH
Mech

SH
Elec.

SH
DWUP I

SH
MSP II

SH
DWUP II

SH
MSP I

SH
DWUP III

Maintanance Personnel

Fig No. 19

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9.

MARKETING & SALES DEPARTMENT:Marketing is a social process by which individuals and groups

obtain what they need and wants through creating, offering and freely exchanging products and services of value with others. It is the art of selling products. Marketing department is functioning under the control of General Manager of marketing department. Marketing occupies an important position in the organisation of any business unit. Marketing functions are not limited to the function of buying and selling but storage, risk bearing and after sales services etc. marketing is a vital connection link between the producer and customer. The marketing section in the IRE is under the direct control of chief General Manager and this section is headed by the deputy General Manager in his job. The marketing activities in the company are indirectly linked with the sales section. IRE has the monopoly in the field of rare earth products. IRE Ltd, Chavara is engaged in the production of minerals such as Illuminate, Rutile, Zircon, Sillimanite, and Brown Illuminate from naturally available beach sand products. It also produces value added products like Zirflour, Microzir. On specific requirements of customers the company also supplies Sillimanite powder by subcontracting. Among these Illuminate, Rutile, Zircon, Brown Illuminate are categorized as Scheduled Minerals for which the customer is required to obtain license from the Department of Atomic Energy (DAE) Mumbai for their purchase. Off late, more stress was given as the marketing activities of IRE, by the company, because of competition, which is growing in the international market and also in Indian market. A new era has been put up in the company for this purpose. The bye products of IRE are Zirflour and Monazite. They are mainly purchase by the Kundara ceramics for the manufacturing of ceramics. The main customers of IRE are the Government of India and other private company. The main foreign customers are USA, Canada, UK, France, West Germany, Japan etc.

OBJECTIVES OF MARKETING DEPARTMENT Y Maximum turnover Y Maximum profit Y Maximum customer satisfaction Y Maximum customer relationship

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The chief General Manager of IRE is having the control of topmost level in marketing department of this unit. There are four superintendents and a clerk engaged in the sales department. IRE Ltd is working under the administrative control of Department of Atomic

Energy. The head office does the pricing of products. The customers of IRE Ltd are mainly heavy industries like plant, glass, refineries, ceramics etc for bulk purchases customer and provided discount.

SALES AND DISTRIBUTION SYSTEM

Here the organisation has been enjoying monopoly. Thats the reason why they dont want to make a distribution network. Direct selling is the main system of organisation. The customer primarily pays the full amount as demand draft (DD) in advance and then the company gives the products. For domestic sales, order are received as 1. Through head office 2. Directly from the customers 3. Transferred from the units of IRE All (except Zirflour, Microzir and Sillimanite powder) are dispatched against permits obtained after payment of prescribed royalty by IRE in advance to the department if mining and geology, government of Kerala. Starting with general condition for sales, majority of the customers place orders directly with Chavara. Sometimes head office also fixes quota customers wise if necessary, for the supply of minerals and intimates time to time. If all the formalities are completed delivery instructions are given by the sales department to stores for delivery of the materials to the customers. Exporting Exporting contract between the seller (IRE) and the buyer (customer) is finalized at the head office and intimates Chavara regarding the export contract along with the copies of agreement, purchase order, proposed loading schedule and many other specific instructions for the execution of the order. Chavara sends samples and product specification to the customer if required by head office/ buyer. Exporting carried out through Neendakara but now its through Cochin port (Bagged Cargo only) shipment through Cochin port is done by C&S agents appointed by seller.

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Pricing Pricing is a very crucial decision in marketing management. The objective of the firm is to get maximum profit. This depends upon the correct decision in pricing. Pricing refers to the process of fixing the price (money value) of a product or service; pricing is an important function in marketing because it determines the sales volume and the amount of profit. A product is acceptable to the customer when it is reasonable priced. A sound pricing policy helps to satisfy customers and to yield profit. Determination of price is influenced by large number of factors such as cost of production, degree of competition, nature of the product, pricing objectives and policies of the firm etc.

Samples to the customers Samples are sending to the customers on their request or as per the instructions from the head office for their evaluation of sustainability for their requirements. Free samples are send to the customers as per the following procedures. Up to 500 Gms: head of the department (marketing) intimates section head (QC) to prepare samples of required quantity along with the gate pass. 501 Gms to 1 kg: head of the department (marketing) prior approval from the unit head and follows the above procedures. Above 1 kg: head office approval with information to unit head and follows the above procedure.

Customer visit Every quarter, 5 customers are selected for a visit to know prevailing market conditions.

Customer feedback Every year customer feedback questionnaires are circulated to the customers and feedback is compiled for chalking and out suitable strategy for the future marketing.

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The sales department maintains the following records

Y Contract review checklist for domestic sale. Y Government of Kerala department of mining and geology and advance remittance and
corresponding permit register.

Y Quotations Y Performa invoice Y Payment registers Y DAE license register Y Priority registers Y Delivery registers Y Sales register Y Shipping register Y Daily statement of production , sales and dispatch Y Quarterly statement regarding export Y Monthly report to cabinet Y Production, sale and stock of minerals (monthly) Y Performa for submitting quarterly export performance to federation of Indian export
organisation

Y COB license Y Geology permit register Y C-form, D-form, form18 register Y Price list of minerals Y Statement showing production, sales and value (Quarterly) Y Contract review checklist for exports Y Cash receipts Y Bank receipt voucher Y Daily information to sales 26, pending orders of minerals (daily) Y DD register Y Gate pass Y Enquiry/order/amendment from parties Y Customer feedback questionnaires Y Customer file
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10.

FINANCE DEPARTMENT:Business finance is concerned with the acquisition and

utilization of funds required to meet the financial needs of a business enterprise. Financing is the process of planning, acquiring, utilizing and controlling the funds used in any kind of business. Finance is the life blood of business. Every enterprise or company requires finance to start the work and grow. A company generally requires large amount of capital. A public company can raise huge capital through issue of shares. In addition to share capital it can utilize retained profit in the form of reserves. It can raise borrowed capital through denture and loans. Long term loans can be obtained from financial institutions. Short term loans are available from commercial banks. DEPARTMENT STRUCTURE FINANCE Chief General Manager Finance

Dpty General Manager Finance

Senior Finance Officer

Dpty Finance Officer

Assistants

Fig No. 20

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SOURCES OF A COMPANY

1. 2. 3. 4.

On the basis of time. On the basis of purpose or use. On the basis of source of finance. On the basis of risk. Finance refers to money, cash or hand available for the operation of

business. Finance may do defined as the requirement of funds wanted. It is the life blood of business activity. The business pulsates with life only through finance. Finance refers to money, cash or hand available for the operation of business. Financial management will include planning, organising, directing and controlling. The main functions of this department are:1. To collect all the receipts and make all the payments. 2. To record all the transactions and prepare the final accounts. 3. Maintain the accounts as per the provisions of the section 20(g) of the Companies Act 1956. 4. Provide depreciation at the rate prescribed in schedule 14 of the Companies Act 1956, on a straight line method. 5. To account excise duty on goods manufactured when it is dispatched. 6. To ascertain the accrued gratuity liability of the company on the date of balance sheet. 7. To value finished goods at cost or market price whichever is lower, stock of raw materials, spares and chemicals are valued at weighted average method. 8. Treat the claims against the company which are not admitted as contingent liability.

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CHIEF GENERAL MANAGER


The finance department is headed by the Chief General Manager

(Finance). A Deputy General Manager (Finance) is there to assist the Chief General Manager in the operations of the department. In addition to them the department consists of 3 senior finance officers, 8 deputy officers and attenders.

AUTHORITY, RESPONSIBILITIES AND ROLES:-

AUTHORITY
Y Approval of policy, objective and targets. Y Approval of apex manual. Y Defining responsibilities and authority of head of departments, management representatives. Y Authorizing various committees Y Approval training programs of financial commitment. Y Authorization of decision taken at review meeting such as safety and environmental protection committee, environment management customer service and complaint redeemed and protection meetings.

RESPONSIBILITIES
Y Overall responsibility for health and safety of IRE, Chavara unit. Y Claiming the review meetings. Y Responsibility of the head office from time to time. Y Ensuring that unit has organized celebration including those related to health, safety and environment through concerned department. Y Providing resources for the implementation main tenance and continued improvement of management systems (in consultation with HO required).

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Y Implementation of directives received from HO / statutory agencies. Y Ensuring smooth progress of project (including feedback of HO on the program).

ROLES
Y Ensuring smooth day to day functioning organisation through concerned HOD / section head. Y Role as head of the unit in the health, safety and environment related celebration. Y Participation in emergency evaluation (Both mock / actual) Y Compliance to safety related requirements including use of personal protection equipments as a role model for others.

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11.

MEDICAL DEPARTMENT:An effective and efficient medical department is functioning in

IREL Chavara. Every family member of the employee is eligible for free attendance and treatment in the dispensary. Cases beyond the scope of the dispensary will be referred to major hospitals which are centered in Kollam and Karunagappally. The whole payment is such cases are done by the company itself. The dispensary is working around the clock. FUNCTIONS 1. 2. To carryout medical examination of employees and their family members. Examining compliance to environmental requirements. Senior Manager (Medical) is the top most authority of the Medical department. Senior Manager is followed by a Section Head/Lady Doctor. The department comprises of two Doctors, three Pharmacists, three Nurses/Compounders, Laboratory Technician and an Ambulance Driver. DEPARTMENT STRUCTURE - MEDICAL
HOD HRM

HOD MEDICAL

SH MEDICAL Lady Doctor

Nurses/ Compounder

Pharmacist

Laboratory Technician

Ambulance Driver

Fig No. 21

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PROCESS INVOLVED IN MEDICAL DEPARTMENT A. Out Patient Service: a) Employees and their departments are provided free medical

services. For this each employee has been allotted a personal dispensary file in which name of the dependants are included as per the family card issued by the welfare department. Proper recording of the ailment, investigation and treatment of the employees and the dependants are entered in the personal dispensary file. Unfit and fit certificate are issued by the medical officers in the prescribed form for availing sick leave and for rejoining the duty after sick leave. b) Patients who require specialists opinion/ detailed investigation are

sent to recognised hospitals/govt. hospitals/ approved laboratories with a reference letter. List of approved hospitals/ laboratories as approved by HO is maintained by HOD (Medical). Patients are taken to recognised hospital only with the reference form issued by medical officer. In the absence of company medical officer, patients are issued a temporary reference card valid for one day by the duty Pharmacist/Nurse for immediate admission incase of emergency and within 24 Hrs the reference card issued by the medical officer is to be collected by the employee. B. Occupational Health Service (OHS):Pre-employment Medical Examination:Normally recruited employees before joining are directed to undergo a medical examination by the medical officer. Medical examination is carried out as per the pre-employment medical examination report. The pre-employment medical examination report is send to the HOD (HRM) for implementing the recommendation of the HOD (Medical). C. Periodical Medical Examination:In accordance with Atomic Energy Regulatory Board (AERB) periodical medical examination for all canteen workers and clarified radiation workers is carried out once in a year and for other radiation workers and other general workers, it is carried out once in five years. Employees are directed to HOD (Medical) as per the list notified by the Administrative section. These who are exposed to high noise, loss of hearing bent are also conducted and feedback is given to the concerned department.

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D.

Pre-retirement Medical Examination:Concerned employee is given intimation from administration

section at least two months before the date of retirement to carryout pre-retirement medical examination with a copy to HOD (Medical). Based on this, medical examination is carried out one month before the retirement of every employee and necessary advice is given to the employee for his future health maintenance.

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12.

SECURITY DEPARTMENT:Security of the company assets and premises is vested in the hands

of the staffs of security department. The department is lead by Security Manager and he is assisted by 6 Head Security Officers and 26 Security Guards. DEPARTMENT STRUCTURE SECURITY General Manager HRM

Manager Security

Head Security Officers

Security Guards

Fig No. 22 FUNCTIONS 1. 2. 3. To give security to the company and its assets. To monitor the entry of employees and visitors. According to ISO procedures they maintain the discipline of the employees, their uniform etc. There are 32 security personnel in total. The security department also gives protection to company equipments in mining area. 7 persons are deployed at Puthenthura, 7 at Vellanathuruthu and 16 at the plant itself. Two major threats presents in IREL are sabotage and theft. To prevent sabotage there is a control room and it accessible at every time. In case of emergency the systems will automatically shutdown and emergency alarm will blow. At that time all the employees are required to assemble in the assembly points. Another security problem faced by IREL is theft. There is no clear boundary wall for the company. This may encourage persons to take away company assets without permission.

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13.

SAFETY AND ENVIRONMENT DEPARTMENT:In the present day industrial scenario all the industries had accepted

the fact that safely improves productivity. IREL Chavara has always been in the forefront in ensuring safety, welfare and better working environment to all its employees. Their safety slogan is Let everyday be a safe day DEPARTMENT STRUCTURE SAFETY & ENVIRONMENT

HOD S & E

SH Safety & Environment

SH Fire Protection

S & E dept Personnel

Fig No. 23

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MISSION AND POLICY OF THE DEPARTMENT

MISSION

The mission of IREL is to be a major supplier of beach sand minerals and rare earth compounds in the domestic and international market, develop and produce chemicals of strategic importance, value addition with due regard to resources utilization and safety protection. Consistent with this mission, IREL envisages a safety and environment protection policy that provides a safety working environment to prevent injury and ill health to its employees. It also ensures environmental protection by minimizing environmental input that may arise from its operations and provide appropriate environmental plans to maintain ecological balance and above all recognizes the use for safety culture man organisation to enhance the awareness and commitment of all employees to safety.

POLICY IREL purpose to update and review the safety policy periodically taking into consideration its industrial experiences advances in the technology and regulatory requirements.

ENVIRONMENTAL POLICY
IREL Chavara is committed to protect, conserve and improve the environment in which it operates for the continued existence in the business throughout Y Conservation of natural resources Y Minimising pollution Y Compliance to applicable environmental rules and corporate guidelines, periodical health monitoring of employees and creation of environmental awareness among employees, customers and suppliers.

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SAFETY GUIDE
IREL Chavara follows strict safety guidelines, which are given in the companys safety guide. Safety team will update the safety guide as per the requirement to throw more clear light on the processes as well as equipments engaged in the plant, including procedures to ensure the safety of both men and machinery There are Dos and Donts enlisted in this guide and this will be quite helpful in averting the slightest possibility of accidents.

SAFETY GUIDELINES
In order to achieve the policy objective certain guidelines are used some of them are as follows.

CORPORATE LEVEL SAFETY


Y An officer of the rank General Manager to co-ordinate at the corporate office all safety environment and training activities of various units and takes necessary steps for effective implementation of this policy. Y GM (S&E) assisted by three senior officers at the head quarters on each of the safety, environment and training. Y The corporate safety setup has been provided with adequate administration / financial support for coordinating safety policy. Y He liaisons with various outside agencies like Atomic Energy regulatory board SARCOP health, physics division of BARC, DGM of mines safety, ministry of environment and forest etc for fulfilling the statutory requirements. Y He assesses the training needs for various areas and granges for different categories of employees. Y He interacts with safety teams / experts for carrying out safety audit / environment audits and assessment of safety performance for award of shield etc.

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UNIT LEVEL SAFETY SETUP


Y Y The head of each unit will be executive director / chief / GM. He will be ex-office chairman of the plant level safety and environment protection committee which will review the monthly safety status of the plant. Y He will implement all the applicable statutory provisions of safety and environmental control in the unit. Y He will nominate senior level officer as safety and environmental control officer who will look after the safety and environmental control aspects of the unit. Y He will ensure that operating procedures are followed strictly and technical specifications are not violated.

SAFETY AND ENVIRONMENTAL PROTECTION COMMITTEE

The term of members of the committee will be two years and the committee members will be meeting once in a month.

The committee will organize safety day / environmental day / fire day and mines safety week annually and hold competition among the employees relating to safety and environment during the celebrations.

The committee will discuss the measures against the unsafe conditions and practices in the mine / plant as pointed out in the report of workmens inspectors.

The committee will consider safety and health measures to be taken before commencement of operations of any new electrical / mechanical equipment proposes.

Summary of minutes of the meeting will be sent to the GM (S&E) regulatory.

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STANDING ORDER FOR WORKMEN CONCERNING SAFETY


IREL standing orders for workmen also envisages the safety of the organisation and relevant clauses. PERSONAL PROTECTIVE EQUIPMENTS It is divided into two categories Y Personal protective equipment for the various parts of the body i.e. head, eye, ears, face, hand, arms. Y Respiratory protective equipment required when workers exposed to atmospheric contaminants like dust, fuel, gases and chemicals let off in the air in the dangerous concentration.

PROTECTION EQUIPMENTS USED ARE: Y Y Y Y Y Y Y Y Y Head protective Safety shoes Safety belts and lifelines Dust respirators Eyes and face protection Ear muffs Aprons Gloves Respiratory protection devices

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14.

PURCHASE DEPARTMENT:The main function of purchase department is procurement of

materials at competitive price. All items including real materials other than raw sand are purchased by this department. In IRE Ltd the purchase department had prime importance.

Formalities of purchase
1. Float enquiry to the right source 2. Scrutinize quotation 3. Obtaining approval of the finance department 4. Release an order 5. Follow up receipt at the store 6. Assistance to give payment in time

Formalities of placing an order


1. Origination of intent 2. Tender enquires 3. Opening of tender on the data mentioned 4. Analysis of all tender 5. Technical evaluation of the tender 6. Selection of the best one 7. Negotiation with the party needed 8. Approval of the selected tender 9. Order placing

10. Follow up

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15.

CIVIL DEPARTMENT:Maintenance has a direct impact on everything that affects the

overall health and welfare of the organisation. A sound maintenance strategy should therefore be considered a valuable tool used to assess equipment capability and the continuous improvement efforts of asset performance. Civil department consist of deputy manager (civil), two deputy officers and the work force. They frequently monitor company structures and maintain them properly. In case of new projects, the base infrastructure has to be erected by this department.

DEPARTMENT STRUCTURE CIVIL

HOD (Civil)

Section Head (Civil)

Civil Dept Personnel

Fig No. 24

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SWOT Analysis

STRENGTHS

Y Highly skilled managers and experienced workmen having excellent knowledge and experience about mining and production process. Y Constant Upgradation of technology. Y A strong and symbiotic relationship between the top level management and the lower level employees. Y Technological collaboration with the Australian company, ROCHE, one of the largest mineral technology providers in the world. Y Abundance of raw materials in the company premises itself. Y Support from government of India and the department of atomic energy. Y High concern towards the employees and environment.

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WEAKNESS
Y Mining problem. Y Diminishing supply of raw sand. Y The inability of the management to control effectively, the resistance raised by the local people in form crises. Y Excess number of civil workers. Y High labour charges. Y Due to monopoly promotional activities are less. Y Decision making process is highly time consuming and complicated. Y Shortage of power supply.

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OPPORTUNITIES

Y High demand for products. Y Growing demand for Titanium, Zircon, Thorium, Rutile, Ilmenite in international market. Y Faster growth rate of markets in Asian countries where extraction facilities are limited. Y The recent efforts to tie-up with other mining companies like KMML, Chavara. Y The favorable state government policies like prohibiting the entry of private companies into the mining sector. Y As a strategically important company it is always backed by the central government.

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Organisation Study on IREL Chavara

THREATS

Y Entry of private players such as TATA group into the area of black sand mining. Y Over intervention of external political groups in company affairs. Y Fluctuating in the value of currency which adversely affects the export income. Y Increasing transportation cost. Y Protect form environment activists. Y Rapid technological changes in production process. Y Changes in government policies.

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FINDINGS

Y The employees were satisfied with the welfare policies which are in practice and the scale of pay at present. Y Majority of the workmen were well experienced and possess great amount of knowledge particularly relating to the mining and production process. Y The managers were overloaded with work but they perform well above the expectations. Y The intervention by the external political parties continues to be a disturbance in formulating labour policies. Y The company has a strong commitment towards the society.

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SUGGESTIONS AND RECOMMENDATIONS

Y IREL should take advantage of the growing demand for heavy minerals by increasing the production. Y The management should sustain the faith of the local people by constantly communicating and explaining the companys policies to them. The trust of the local people can be ensured and sustained by constant interaction and communication with them. The company can achieve them by undertaking more socially responsible activities. This may be in the form of medical facilities running schools, assistance at the time of sea erosion and trawling ban. They can also provide water and electricity supply to the local people. Y The company should try to minimize the external interventions of parties. Y The company must take full use of the favorable government policies at present. various political

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CONCLUSION

IREL is one among well performing companies in Kerala, engaged in the process of processing rare earth products available among the coastal belts. IRE is reaching new boundaries with its performance. IRE was incorporated on 18th august 1950 as a private limited company under the Indian companys act of 1913 jointly by the government of India and the government of Travancore Cochin. In 1951, IREL became a public sector undertaking and two mineral separation plants, one at Manavalakurichi in Tamilnadu (1967) and the other at Chavara in Kerala state (1970) were setup. The organisation study at IRE ltd was an unforgettable experience. The organizational atmosphere prevailing at IRE is not that of a public sector unit. The concern for the environment and social responsibility are worth studying. The study helped in having a practical exposure to real practice in organisation. The study provides insight into the functioning and coordination of departments in an effective organization.

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Appendices

Organisation Study on IREL Chavara

BALANCESHEET AS AT 31.03.2009 31.03.2009 (In Crores) I. Sources of Funds 1. Shareholders Fund a. Capital b. Reserve & Surplus 2. Loan funds Secured Loan Unsecured Loans 3,320.42 9.31 4,427.23 8636.50 38,629.23 8636.50 34,973.31 31.03.2008 (In Crores)

50,586.15 II. Application of Funds 1. Fixed Assets a. Gross block b. Less Depreciation c. Net block d. Capital works in progress e. Assets pending disposal 43,955.80 24,495.93 19,459.87 709.82 0.49

48,046.35

43,062.78 22,801.74 20,261.04 672.21 15.74

20,169.58

20,948.91

2. Investments 3. Deferred Tax Assets (Net) 4. Current Assets, loans & Advances Current Assets Inventories Sundry Debtors Cash & Bank Balance Other current assets Loans & Advances

1.42 1603.98

1258.51 523.34

6020.81 833.48 27281.30 1485.22 7577.76 43,198.57

5500.08 2641.61 23381.71 600.66 7103.19 39,227.25

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Less Current Liabilities & Provisions a. Current Liabilities b. Provisions 5631.43 8908.35 14,539.78 Net Current Assets 5. Miscellaneous Expenditure Total 28,658.74 152.38 50,586.15 6134.58 7893.95 14,028.53 25,198.72 116.79 48046.35

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PROFIT AND LOSS A/C FOR THE YEAR ENDED 31.03.2009 31.03.2009 I. INCOME Gross Sale Less : Excise duty 33,669.82 13.83 33,655.99 Compensation for processing Thorium Increase / Decrease in Stock Other Income 1,443.84 50.46 3,873.74 1,918.25 778.74 2,662.29 29,625.02 27.77 29,597.25 31.03.2008

II. EXPENDITURE Materials Consumed Employees Remuneration and Benefits Manufacturing and other Benefits Interest Depreciation Capital expenditure not represented by the company Written off. 30,712.30 26,899.73 233.36 1,973.30 219.29 2,164.10 12.40 9,850.06 10,009.49 3,790.89 14,864.69 3,045.24 11,449.21

III. Profit before extraordinary items prior period adjustments and taxation.

8,311.73

8,056.80

Extraordinary items as prior period adjustments

(23.68)

14,818.98

Profit before Tax Provision for Tax

8,288.05 2,611.25

22,875.78 7,318.29

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Profit after Tax

5,676.80

15,557.49

Balance brought forward

33,263.05

21,226.41

IV. Profit available for appropriation Appropriation:Proposed Dividend Tax on Dividend Transfer to General Reserve

38,939.85

36,783.90

1,727.30 293.55 1,000.00

1,727.30 293.55 1,500.00

Balance Carried to Balancesheet

35,919.00 38,939.85

33,263.05 36,783.90

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BIBLIOGRAPHY

1. 2. 3. 4. 5. 6. 7. 8. 9.

C.R. Kothari Research Methodology methods and Techniques. Prasad L.M Principals and practice of management. Kottler Philip Marketing Management. Rejimon.P.M Indian rare earth is going to expand. Rejimon.P.M 50 Crores rupees expansion program in IRE. IREL Broucher Apex manual and departmental procedures of IREL. http://www.indianrareearths.com http://www.irel.gov.in Annual Reports and Journals

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