CHAPTER - I

INTRODUCTION:

TUTICORIN AIKALI CHEMICALS & FERTILIZERS LIMITED was

started as a proprietary concern in 1971. Company was developed and it will
incorporated 3rd December.

Tuticorin Alkali Chemicals & Fertilizers Limited is Joint Venture

Company which emphasis of manufacturing acids, alkalis, all kind of chemicals
and petrochemicals as elements and intermediates moderators or compound
forms. The commercial production of the company is Ammonium Chloride and
Soda Ash.

TAC is handling high volume of soda Ash, Ammonium Chloride,

Ammonium Bicarbonate, Carbon-di-oxide, captive salt, Bio-products, Sodium
Bicarbonate is the product of ‘TAC’. Subsequently the name of the company
changed into the Ltd., Having its registered office at 534, Annasalai, Teynampet,
Chennai – 600 018. The company is situated just opposite to Kamaraj memorial
hall.

BIO-PRODUCTS UNIT IS Situated at R.S. No. 12014, Chennai –

Bangalore High ways, Chembarambakkam – 602103.

HISTORY OF THE COMPANY:

TUTICORIN AIKALI CHEMICALS LIMITED was incorporated under

the companies Act 1956 on the third day of December 1971.
The plant is situated in the town at Tuticorin, the second largest Port in
Tamil Nadu, to facilitate import of raw materials and expost of finished
products.

The name of the company changed into Tuticorin Aikali Chemicals &
Fertilizers Limited on 8th Aug 1979. Having its registered office at 534,
Annasalai, Teynampet, Chennai – 600 018. The company is situated just
opposite to Kamaraj memorial hall.
 The company is establishing a Co-Generation Plant for generating
electricity. The Company has successfully developed a technology for
recovering Co2 from Boiler flue Gasses.

PROMOTERS:

The promoters of the company are Tamil Nadu Industrial Development

Corporation Limited (TIDCO). TIDCO has Successfully implemented and
projects engaged in the manufacture of fertilizer, Chemical and various other
Consumers good in the public and joint.

Southern Petrochemical Industrial Corporation Limited SPIC is the Co-

promoters of the company.The Company Adopted the Toya Soda process for
first time in India for the manufacture of soda ash and chloride. SPIC fertilizer
Complex is one of the largest in India is adjacent to the company’s plant of
tuticorin. 2002-Tuticorin Alkali Chemicals and Fertilizers Ltd has informed that
consequent to the improvement in water position, its plant Tuticorin has resumed
the manufacturing operations with effect September 02, 2002.

The company is primarily engaged in the manufacture and sale of

Ammonium Chloride, Salt Ash, Sodium Bicarbonate, Ammonium Bicarbonate
and Bio products. The commercial production of ammonium Chloride and Soda
Ash, the main products of the company, commenced on Nov 1,1982.The
company has so for exported more than 53,824 Tonnes of Ammonium Chloride
(Fertilizer), earning a foreign exchange of US$ 4.50 million.

ACHIEVEMENTS AND AWARDS

In Dec 2007, the Institute of Economic studies, New Delhi, a premier

research and awareness promoting organization, Conferred the “Udyog Rattan
Award” on Thiru S.Chandramohan for his outstanding performance in the field
of industrial development and he also achieved the “Excellence Award” for the
company, in appreciation for its excellence in the field of productivity, quality,
innovation and management.
 The company achieved a net profit of Rs.4.34 crores during the financial
year 2005 – 06 followed by an increased not profit of Rs.6.71 crores during the
first 6 months of the next financial year ( 2006 – 07 ) before the plant were
totally shut down on Mar 26, 2007. Had the plants been running continually, the
company would have continued its operation on the profit mode.

OBJECTIVES OF THE STUDY:

The training related to study about the:

1. Performance of TAC Ltd.,
2. To understand the financial performance of TAC
3. To understand the management and worker relations.

ORGANISATION STRUCTURE:
Organization is an important place in the management concern without a
proper organization the companies hierarchy cripples down it is like “A blind
leading a blind” until a proper organization and the achieved defining of
relationship between management, “PODSCORB” mean Planning, Organizing,
Directing, Starting, Co-ordinating, Reporting, Budgeting, in which organization
stands record level of activities until the organizing part is achieved the company
cannot proceeds further.

MEMORANDUM OF ASSOCIATION:

Name Clause:
The name of the company is Tuticorin Alkali Chemicals & Fertilizers
Limited”

Situation Clause:
The Registered office of the Company will be situated in the state of
Tamil Nadu.
 OBJECTIVES OF THE COMPANY

(A) The main objects to be pursued by the company on its incorporation are

1. To work out the concessions to be granted particularly by the Tamil Nadu

Industrial Development Corporation Ltd. To Southern Petrochemical Industries
Corporation Ltd., for manufacturing and carrying on business in Alkali and
Chemicals, Fertilizers and other Industrial products.

2. To buy, sell, import, export, treat in and deal in any kind of chemicals,
Petrochemicals and plastics, fertilizers or other things which the company is
authorized to manufacture and any raw materials required for the manufacturing
of any acids Alkali, Chemicals and Fertilizers and other things which this
company is authorized to manufacture.

3. To manufacture various inorganic and organic compounds by all possible

methods now prevalent or as they may be devised in future.

4. To manufacture acids, Alkalis, Corrosive and anti-corrosive Substance, non

corrosive Substance, all kinds of Chemicals and petrochemicals as elements and
intermediates moderators or in mixture or compound forms

(B) The objects that are incidental or ancillary to the attainment of the main
objects are:

6. To take up agencies and act as Agents, Stockiest, or distributors, for the

manufacturers and suppliers of any acid or other chemical products or
substances, machinery, Plant, implements, tools, property chemicals industrial or
other preparations and articles, substances, apparatus materials and things.

7. To Plant, grow and produce agricultural products and other produce of any
kind in India a else where necessary or useful for the business of the company.

8. To carry on the business of manufacturer of and dealers in vegetable products

oil, tallow, steering, fatty acids, acetylene, gas, starch, sugar, glucose and all
other allied products and by products thereof and all compounds and all
compounds and preparations there from for the purpose of the company.

9. To acquire by purchase or otherwise for the business of the company in India

or elsewhere, any lands, manufactories, buildings, mills, plants, engines,
machinery and other things fund necessary for the purpose of the company.

10. To draw, make accept, endorse, issue and negotiable bills of exchange,
promissory notes, cheques, drafts, handiest and other instruments of every
description.

11. To lay out, advance, invest and deal with the company’s moneys to such
person or company and in or upon such investments or securities and generally
in such manner as may from time to time be determined.

12. To take part in management, supervision or control of the business or

operation of any company or undertaking, and for that purpose, to appoint
remunerate any directors, accountants, or other experts or officers.

(C) .The other objects of the company not indicated in “A” and “B” are”

A. Top carry on the business of manufacturers of and dealers, whether wholesale

or retail, in all kinds and descriptions of matches or match lights or other lighting
appliances of apparatus whether composed or made in port or in whole of or
from any combustible or non-combustible substance, material or thing whatever.

B. To undertake and execute any contracts for works involving the supply,
application, or use of any machinery, chemicals, chemical products or other
works comprised in such contracts.

C. To carry on all or any of the following business namely, builders, and

contracts, consultants, engineers, designers, merchants, and dealers in stone,
sand, lime, cement, brickets, timbers, hardware and other building requisites,
brick and tile and terracotta makers, jobmasters, carriers, licensed victuallers,
and house agents.
D. To lend money, either with or without security and generally to such persons
and upon hire purchase or such other and conditions as the company may think
fit.

E. To carry on the business of hardware merchants, and to establish and carry on

to promote, the establishment and carrying on of any business in rubber, tea,
coffee, cashew nuts, areca nuts, cardamoms and glassware.

F. To undertake, transact and execute all kinds of agency business also trusts of
all kinds.

LIABILITY CLAUSE:
The liability of the members is limited.

CAPITAL CLAUSE:
The share capital of the company is Rs.21 Crores divided into
1,90,000,00 Equity share of Rs.100 each, with rights, privileges and conditions
attached thereto as are provided by the regulations of the company.

ASSOCIATION CLAUSE:
We the several persons whose names and address are Subscribed are
desirous of being Formed into a company in pursuance of the memorandum of
Association and we respectively agree to take the number of shares in the
company set opposite out respective names.
 S. Signature, Name, Address, Number of Witness, Signature, Name
No. Description and Occupation of equity shares Address, Description and
Subscriber taken by each Occupation
subscriber

1 (Sd) M.A.CHIDAMBARAM
Adayar House, Madras – 25
S/o. Late Dr. Rajah Sir Annamalai 5
Chettiar Industrialist

2. (Sd) K.R.SRIVATSA
46, Archbishop Mathias Avenue,
Madras – 28. 5
S/o. S.Krishnaswamy
Management Specialist

3. (Sd) A.C.MUTHIA,
Adyar Villa, Madras – 25. 5
S/o. Mr.M.A.Chidambaram
Management Technologist

4. (Sd) S.GOVIND
SWAMINASHAN 5
42,Harrington Road,Madras–13.
S/o. Subbaram Swaminadhan,
Advocate

5. (Sd) M.G.MENON (Sd)A.SANTHANAM

12, Venus Colony Madras – 18. 5 KRISHNAN
S/o Late Dr. Mannalcot Krishna E20, M.G Flats Batch I,
Menon, Anna Nagar, Madras–40.
Management Executive S/o.Late.Sri.V.R.Arumugam
Pillai Company Executive
6. (Sd) S.PAPPASAMY
“Anakara” 5
Gilchrist Gardens Madras-31
 S/o. Dr. A.J.Appasamy
Business Executive

7. (Sd) K.A.RAJAGOPALAN
90, Habibullah Road, T.Nagar, 5
Madas – 17.
S/o.K.R.Appalachariar
Business Executive

Total No. of shares 35

CHAPTER – II

SECRETARIAL DEPARTMENT

INTRODUCTION

The Secretarial department of TAC limited is headed by the company

Secretary Mr.S.Ragavan M.Com., A.C.S. there are 3 executive officers assisting
the Company Secretary and there are 24 officers in total carrying out the duties
of the development of the company.

The Secretarial department deals with maintaining records documents

and papers relating to capital financial and control of the business.

According to Sec 383 of the Company act 1956 every company having a
paid up share having a whole time secretary appointed by the director at the
meeting.

“Secretary” means any individual possessing qualifications prescribed for

time to time being by rules made under the act and appoint to perform the duties
which may be performed by a secretary under to Act.
All matters relating to capital issue and share and which includes transfer and
transmission of shares of the company are carries out by the share section. The
company has an efficient and organized shares section to take care of matters
relating there to, The Secretariat department deals with maintaining records,
documents and papers relating to capital financial and control of the business.
The Secretarial department is a link between the holders who are the real owners
of the company.

OBJECTIVE OF SECRETARAL DEPARTMENT:

The Secretarial department of Tuticorin Alkali chemicals and Fertilizers

limited carries out the following important objectives in respect of the company.
 Arrange venue for the meeting and collecting details for the Item.
 Declaration of dividend
 Sending annual reports to members
 Arranging travel, accommodation for out station directors after
confirmation of their arrival
 Filing of returns
 To arrange for board / capital expenditure committee meeting
 Circulating printed notice to the shareholders
 Finalization of accounts
 Maintenance of stationary registers

The Secretarial department is divided into Sections namely

1. Share Section and
2. Legal Section

SHARE SECTION:
The main function of share section in Tuticorin Alkali Chemicals and
fertilizers limited is to maintain proper records for share transactions and to
conduct meeting periodically as per the requirement of company’s act.

SHARE CAPITAL:
 The share capital of the company is Rs.21 crores divided into 190,00,000
Equity share of Rs.10/- each and 2,00,000 Redeemable Cumulative Preference
Shares of Rs.100/- each.

The Redeemable Preference Share shall confer the right on the holder
thereof, in a winding up to payment of the paid up capital and all arrears of the
fixed cumulative preferential dividends set out in clause (a) above, whether
earned, declared or not, upon the date of commencement of the winding up, in
the profits or assets of the Company, is priority to the equity shares.
The said Redeemable Preference Share shall be redeemable at par at the
option of the Company, not later than 10 years from the date of its issue to the
holders thereof.

The Board of Directors may at their discretion redeem the whole or any
part of the outstanding Redeemable Preference Shares.

ISSUE AND ALLOTMENT OF SHARES:

The share shall be under the control of the Board, who may allot or
otherwise dispose of them to such persons on such terms and conditions and at
such times as the Board may think fit provided, however, the Board shall comply
with the provisions of Sections 42, 75 and 81 of the Act, Option or right to call
of shares shall not be given to any person or persons except with the sanction of
the Company in General Meeting.

The Board may issue and allot shares in the capital of the company as
payment or part payment for any property sold or goods transferred or
machinery or appliances supplied or for services rendered or to be rendered to
the Company in or out the formation or promotion of the Company or the
acquisition and or conduct of its business and shares may be so allotted as fully
paid up shares, and if so issued, shall be deemed to be fully paid up shares.

CALLS ON SHARES:
 The Board may, from time to time, make, calls upon the members in
respect of any moneys unpaid on their shares (Whether on account of the
nominal value of the shares or by way of premium) and not by the conditions of
allotment thereof made payable at fixed times. A call may be made payable by
installments. All such calls shall be made on an uniform basis on all shares
falling under the same class.

Each member shall, subject to receiving at least one month notice

specifying that time and place of payments, pay to the company at the time and
place specified the amount called on his shares.

A call may be revoked or postponed at the discretion of the Board.

A call shall be deemed to have been made at the time when the resolution
of the Board authorizing the call was passed and may be required to be paid by
installments.

If a sum called in respect of a share is not paid before or on the day

appointed for payment thereof, the person from whom the sum is due shall pay
interest thereon from the day appointed for payment thereof to the time of actual
payment at 12% per annum or at such lower rate, if any, as the Board may
determine.

FORFEITURE OF SHARES:

If the requirements of any such notice as aforesaid are not complied with, any
shares in respect of which the notice has been given may, at any time, thereafter,
before the payment requires by the notice has been made, be forfeited by a
resolution of the Board to that effect.

A forfeited share may be sold or otherwise disposed of such terms and in

such manner as the board things fit. At any time before a sale or deposal as
aforesaid, the board may cancel forfeiture on such terms as it things fit.

A person who share forfeited shall cease to be a member in respect of the

forfeited shares, but shall not withstanding the forfeiture may remains liable to
pay to the company all moneys which at the date of forfeiture were presently
payable by him to the company in respect of the shares.

ALTERATION OF SHARE CAPITAL:

The company shall have power to increase its share capital or alter the condition
of its memorandum subject to section 94 of the act of ordinary resolution:

To increase its share capital or to alter the conditions of the memorandum

subject to section 94 of the act.

To consolidate and divide all of any of its shares capital into shares of its
larger amount existing shares.

To Sub-Divide its existing share of any of them into any of them into
share of smaller amount then its fixed by memorandum, so however that in sub-
division the proportion between the amount paid and the amount, if any unpaid
on each reduced share shall be the same as it was in the case of the share from
which the reduced share is derived.

REDUCTION OF THE CAPITAL:

The company may, from time to time ,by special resolution and subject to
the provisions of sections 100 to 104 of the Act, reduce its share capital
redemption reserve account or share premium account.

TRANSFER AND TRANSITION OF SHARES:

The Board shall not register any transfer of shares unless proper
instruments of transfer duly stamped and executed by the transferor and
transferee as been delivered to the company along with the certificate and such
other evidence as the company may require to prove the title of the transfer the
shares.
 No fee shall be charged by the company for registration of transfers or for
effecting transmission of shares of the death of any member or for registering
any letter to probate, letters of administration and similar other documents.
In the event of the death of any one or more of several join holders, the
survivor or survivors alone shall be entitled to be recognize as having title to the
shares.

The company shall keep a book to be called the “Register of members”,

and therein shall be entered the particulars of every transfer or transmission of
any share and all other particulars of shares required by the Act be entered in
such register.

All instrument of transfer which shall be register shall be retained by the

company but any instrument of transfer which the Directors may decline to
register shall be return to the person depositing the same.

TRANSFER BY LEGAL HEIRS:

Any person becoming entitled to a share in consequence of the death or
insolvency of a member may, upon such evidence, being produced as may, from
time to time properly be required by the Board and subject as hereinafter
provided elect either.
(i) to be registered himself as holder of the share or
(ii) to make such transfer of the share as the deceased member could
have made.

The Board shall, in either case, have the same right to decline or suspend
registration as it would have had in the deceased or insolvent member had
transferred the share before the death or insolvency.

All the limitations, restrictions and provisions of these regulations

relating to the right to transfer and the registration of transfer of shares shall be
applicable to any such notice or transfer as if the death or insolvency of the
member had not occurred and the notice or transfer where a transfer signed by
that member.
SHARE WARRANTS:

The bearer of a share warrant may, at any time, deposit the warrant at the
office of the company and so long as the warrant remains so deposited, the
depositor shall have the same right of signing a requisition for calling a meeting
of the company and of attending and voting and exercising the other privileges
of a member at any meeting held after the expiry of two clear days from the time
of deposit as if his name were inserted in the register of member as the holder of
the shares included in the deposited warrant.

The bearer of a share warrant shall be entitled in all other respects to the
same privileges and advantages as if he were named in the register of members
as the holder of the shares included in the warrant and he shall be a member of
the company.

NOTICES:
A General Meeting of the Company may be called by fiving not less that
twenty one days’ notice o after giving such shorter notice as provided for in
Section 171(2) of the Act.

Notice of every meeting of the Company shall be given

(i) to every member of the Company residing within India:
(ii) to the persons entitled to a share in consequence of the death or
insolvency of a member;
(iii) to the Auditor or Auditors for the time being of the Company, in
the manner provided for in Section 172 of the Act.
Accidental omission to give notice to or the non-receipt of notice by any
member or other persons to whom it should be given shall not invalidate the
proceedings of the meeting.
MEETING:

Every company holds the meeting of its members and directed to discuss
the various activities of the company and decision by common consent of
majority. meeting have become to an integral part of the modern democratic set
up.

The most important duties entrusted to the secretary of any organization

relates to arranging the meeting. the secretary plays an important role. he he
asks to draft the various circular notice and reports, which are to be submitted
the board of directors and issue total shareholders.

The company secretary general meetings compliance’s with the provision

of companies act, 1956.

The meetings of a company are classified as follows:

a) Statutory Meeting
b) Annual General meeting
c) Extra ordinary general meeting
d) Board Meeting

a) STATUTORY MEETING:
Every limited company by shares and limited by guarantee and having a
share capital is required to hold statutory meeting with in a period of not less
than one month and not more than six months from the date in which the
company its entitled to commence business, hold a general meeting of the
members of the company. The meeting is called as STUATORY MEETING.

The statutory meeting of Tuticorin Alkali chemicals and fertilizers Ltd,

was held on 18th September 1972.
b) ANNUAL GENERAL MEETING:

Tuticorin alkali; chemicals and fertilizers ltd, in each year held in

addition to any other meetings, a general meeting as its annual general meeting .
This company specifies in the notice called the meeting as annual general
meeting.

The company shall in addition to any other meetings hold ageneral

meeting, which shall be styled the annual general meeting at such internals and
in accordance with the provisions of section 166 read with section 210 of the
Act.

The management of companies. business is necessarily left to the

decision of the directors. The ultimate control of action of board is vested with
the members. This enables them to get opportunity to discuss the affairs and
review the working of the company and by this meeting they can take the
necessary steps for protection of their interests.

the 36th Annual general meeting of the share holders of Tuticorin alkali
chemicals and fertilizers ltd., was held on Monday the 17 th July 2009 at 4.00 pm
at “Rajah Annamalai Hall“, Esplanade, Teynampet, Chennai-600 018.

The ordinary business transacted in AGM are as follows:

1. To receive, consider and adopt the audited profit and loss account for
the year ended 31st march 2009,. Balance sheet as at that date and the directors
and Auditor’s report there on
2. To appoint and director in place of Dr.A.C.muthiah who retires by
rotation and being eligible, offers himself for re-election
3. To appoint auditors and fix their remuneration, M/S.CNGSN &
Associates, Ross, charted Accountants, Chennai, retire and are eligible for
re-appointment
c) EXTRAORDINARY GENERAL MEETING:

Extraordinary general meetings may be called on requisition in accordance with

the provision of section 169 of the Act.

These meeting are held to discuss special urgent business. Before such a
meeting in addition to usual process the company secretary must submit a letter
of requisition if any received from the member for holding such meeting to the
board for consideration and action.
In Tuticorin Alkali Chemical and Fertilizers Ltd of the meeting is
convened by:
1. The board of director on its own or on the requisition of members or.
2. The requisition the member on the failure of the board of call the
meeting. The Board of Direct proceeds to call a meeting with in 21 days from
the deposit of the requisition.

d) BOARD MEETING:
The secretary consults with the chairman of the company and fixed the
date of board meeting and issue notice to all the directors’ specification of the
date, time, venue and agenda of the meeting. the minutes of the meeting is then
prepared and the secretary get its approved by the chairman, copies of the
minutes must be held in every 3 months and 4 meeting must be held in every
year.

The board of direction may meet for the dispatch of business or otherwise
regulate it meeting as it think fit, provides, however, the board shall meet once in
every three months and at least four such meeting shall be held in every year.

The board meeting of Tuticorin Alkali Chemicals And Fertilizers Limited

was held 28th march 2009.

MINUTES:

Minutes are the record of all proceeding of every general meeting of the
board of directors. This is done with the 30 days of the conclusion of every
meeting the book in which the record of the proceeding of the meeting is kept is
known as minutes book must contain the data and signature of the chairman and
the company secretary.

PROXIES:

The instrument appointing a proxy and the power of attorney or other

authority, if any, under which it is signed or a materially certified copy of that
power or authority, shall be deposited at the office not less than 48 hours before
the time for holding the meeting or adjourned meeting at which the person
named in the instrument proposes to vote or in the case of a poll, not less than 24
hours before the time appointed for the poll and in default the instrument of
proxy shall not be treated as valid.

QUORUM:

If within half an hour from the time appointed for holding a Meeting of
the Company, a quorum s not present, the meeting, if called upon the requisition
of members, shall stand dissolved.

In any other case, the meeting shall stand adjourned to the same day in
the next week at the same time and place or to such other day at such other time
and place as the Board may determine.

CHAIRMAN OF MEETINGS:

The Chairman of the Board of Directors shall preside at every general

meeting of the Company and if he is not present within 15 minutes after the time
appointed for holding the meeting, or if he is unwilling to act as Chairman the
Vice Chairman of the Board of Directors shall preside at every general meeting
of the Company.

The Chairman may, with the consent of any meeting at which a quorum
is present and he shall, if directed by the meeting, adjourn the meeting from time
to time and place to place.
 Where a resolution is passed at an adjourned meeting of the company, the
resolution shall, for all purpose be treated as having been passed on the date on
which it was in fact passed and shall not be deemed to have been passed on any
earlier date.

WINDING UP:

If the company shall be wound up . the liquidator may, with the sanction
of a special resolution of the company and any other sanction required by the
Act, divide amongst the members in specie or kind the whole or any part of the
assets of the company, whether they shall consist of property of the same kind or
not for the purpose aforesaid, the liquidator may set such values as he may deem
fair upon any property to be divided as aforesaid and may determine how such
division shall be carried out as between the members or different classes of
members.

INDEMNITY:

Every director, secretary and other officer or employee for the time being
of the company, shall be indemnified out of the assets of the company against
any liability incurred by him in defending any proceedings, whether civil or
criminal, in which judgment is given in his favor or in which he is acquitted or in
connection with any application under section 633 of the act in which relief is
granted to him by the court and without prejudice to the generality of the
foregoing, it is hereby expressly declared that the companies shall pay and bear
all fees and other expenses incurred or incurable by or in respect of any director
for filling any return paper or document with the registrar of companies or
comply with any of the provisions of the act in respect of or by reason of his
office as a director or other officer of the company.
 CHAPTER – III
OTHER DEPARTMENT

INTRODUCTION:

Departmentation is the effect and effective grouping of jobs into

meaningful work units to Co-ordinates numerous jobs all for the expeditious
accomplishment for the organization objectives. Its department grows more and
submits are created which in turn add more levels of management the functions
of an enterprise are grouped homogenously into different sections such as.

1. Marketing Department
2. Research and development department
3. Personal Department
4. Accounting Department
5. Finance Department

MARKETING DEPARTMENT

Marketing is the first step for efficient sales. Marketing department is

one of the most important departments for each and every concern. Meeting
places a hilarious role in uplifting good sales. Marketing does not include the
sales of the product but it also involves the awareness about the product in
the market.

Function of Marketing Department:

 Effective advertisement
 Formulation of effective marketing polices
 Marketing analysis market share of TAC
 Control over marketing staff
 Developing effective channels of distribution
 Pricing Policies
CHEMICAL SALES:
During the year 2006 – 2007 the company has achieved satisfactorily
sales in spite of difficult condition in the domestic market and decrease in
imports of Soda Ash. the company has introduced in the market technical
and pure grade Ammonium Chloride for various industrial uses.

RESEARCH AND DEVELOPMENT DEPARTMENT

Research and development department is very essential for every

company. It helps the company to expand in many ways. In “Tuticorin Alkali
Chemicals & Fertilizers Limited”, research and development department takes
and active part to expand their business, technology etc.,
Form for disclosure of particulars with respect to technology absorption
research and developments.

Research and Development:

Efforts continue to bring in new technologies for the generation of co 2 to

restart the plant.
Efforts continue to bring in operational efficiencies and product up
gradation / innovation through R & D activities.

Technology Absorption, Adaptation and Innovation:

1) Efforts, in brief, made towards technology adsorption, adaptation and
innovation:

Absorption of co2 from boiler flue gas using MEA technology, a cost
effective technology, and plant supply source have been identified steps are
being initiated for adopting the same.
.
2) Specific areas in which research and development carried out are:
a. Studies on process improvement with a view to cost reduction and
improving quality and productivity in areas like ammonium chloride recovery
from purge liquor.
b. Studies on pollution control.

3. Benefits derived as a results of above research and development:

a. The company had developed a process for producing technician grade

and pure grade Ammonium chloride from Purge liquors which also reduces
efficient liquors generation and sludge generations considerably.

b. The company had commissioned a same commercial plant of 1000

TPA capacity the company had produced and marked about 44898 tones of pure
grade ammonium chloride in this year and conducted market studies ascertained
the market requirements and the acceptability of the product.
c. The company had generated operating data and data for scaling up to
10000 TPA.

3. Imported Technology:

a. Technology imported
b. Year of import
c. Has technology been fully absorbed
d. If not fully absorbed, reasons and future course of action.
 PERSONNEL DEPARTMENT:

Personal department is responsible for selecting the right job to the

right place and at the right time. It helps in identifying the best available talent
and provides training to the employees which helps in improving their efficiency
and increase their loyalty towards the company.

Functions:
The personal department is responsible for the activities like
requirement, selection, placement, Induction, evaluation of the performance of
employees and giving training to them personal department consist of human
resource manager for administration and works like training the personnel
department and the welfare manager motivating the employers by way of giving
them incentives, cash awards etc.

Section:

Management of managing committee formed for the purpose shall prepare

the list of candidate selected for employment in order of merit and selected
employees will have to undergo for medical examination.

Working hours:

The working hours for the officers of TAC are from 9:00 a.m to 5:30
p.m.

Holidays:

The public holidays like newyear, pongal, Christmas, Dewali etc, and
Sunday will be treated as holiday for the employees.

Leave policy:
The leave entitlement for the employee will bear detailed here under the
grant for leave shall be subject to exigencies fo the work and if the discretion of
the complement authority.
Leave:

Casual leave – 18 days in a year.

Medical leave – 18 days in a year.
Encasement of surrender of leave – 15 days in a year.

Emoluments:

The company grants emoluments, which includes basic pay, personnel

pay, special pay, leave salary, dearness allowance, house rent allowances and
any other allowance so granted by the management.

Motivation:

The company motivates employ as by way of increment, primitive, initial

advance, attendance incentives etc.

Training:

TAC employee’s needs are assessed systematically by a committee. The

employees are trained y the SPIC management development center through
various programmers viz, supervisory development programme and management
development programme, specifically designed for various caders.

Attendance:

The daily attendance of the employees of TAC is maintained by computer.

Computer attendance is a micro based system which can lead display and store
the purchase information.
Daily attendance report will be filled through computer and generation of
daily attendance report ins made in department wise and it will be send
concerned department and pay roll.
HEALTH PROGRAMMES:

Medical facilities:
The company provides following medical facilities to its employees
1.Normal medical reimbursement
2.personal accident insurance

Gratuity:

Gratuity payable shall be fifteen days salary for each completed year of
service.
Safety shoes:
The employees in the factory and provided with safety shoes inoeder to
prevent them from any accidents.

Uniforms:

The uniforms are provided to the employees according to their working levels
in the company.

Code of discipline:

The company maintains a discipline procedure where the employee is

1. Liable to abide by the rules and orders
2. Employees have to promote the company’s interest
3. He should not participate in politics
4. Follow a proper channel for grievances procedure.
Thus management succeeds or fails as human relations in business are
intelligently handled.
 FINANCE DEPARTMENT:

The Problem of finance is faced by every organization. But in Tuticorin

Alkali Chemical and fertilizers limited even though they face Financial problem
they meet out their requirements by getting funds from Financial institutions
bank loans etc.

The share capital of Tuticorin Alkali chemical and fertilizers is Rs.1,50,000,00

equity share of Rs.10 each, 100000 12% redeemable cumulative performance
share of Rs100 each and 8% Redeemable cumulative performance share of
Rs.100 each fully paid up.

1. Source of Finance:

Tuticorin Alkali chemical and fertilizers limited gets finance from

various means and they are as under.

2. Equity Shares:

TAC raises funds through public issues it issues equity shares to public.

1. Loans from financial Institutions:

The company raises its funds from financial instructions like

(i) Industrial Finance Corporate of India (IFCI)
(ii) General Insurance Corporation of India (GTC)
(iii) Industrial Development Bank of India (IDBI)
(iv) Industrial Credit and Investment Corporation of India (ICICI)

2. Term Loans:

IFCI, GIC, IDBI, ICICI and its Subsidiaries have Sanctioned financial
assistance to the Project on certain terms and conditions.
3. Bank Loan:

Loan may be granted to firm to meet its working capital requirement for
per-determined short durations. Some of the banks are state bank of India,
Canara bank, India overseas bank, Syndicate bank.

Functions:

Some of the other functions of this department are procuring deposits

from general public maintenance of deposits ledgers; Sending deposits
Certificates to the holders, calculating interest are deducting tax from interest
(TDS) sending interest warrant to the depositors etc.

ACCOUNTS DEPARTMENT:

The accounts are prepared under historical cost convention and generally
in accordance with the applicable accounting standard and rate based on accrual
basis of accounting.
The financial statements are prepared under historical cost convention
and generally in accordance with the applicable accounting standards and are
based on accrual basis of accounting.

Fixed Assets:

Fixed assets are recorded at historical cost inclusive of direct and

allocated expenditure unto the date of commencement of commercial production
cenvat credit on eligible capital goods is deducted from the value of fixed assets.

Borrowing costs are capitalized as part of qualifying fixed assets other

borrowing costs are expensed.

Long Term Investments:

Long Term Investments are stated at cost together with all incidental
costs of acquisition are diminution in value, though material, is not recognized if
such shortfall in the opinion of the management, is temporary in nature.
Inventories:

Raw materials, stores and spares, process chemicals and utilities are
valued at weighted average cost, work-in-process is valued at cost.
Finished goods are valued at the lower of cost and net realizable value.

Revenue Recognition:

Sales are accounted net of trade discounts but inclusive of Exercise duty
wherever applicable direct sales are recognized at the point of dispatch
consignment and depot sales are recognized after confirmation of sale by the
consignee.

Foreign Currency Transaction:

Foreign Currency Transaction are recorded at the rates of exchange

prevailing on the date of transaction.
All current assets and current liabilities in foreign currency as at the
Balance Sheet sate have been translated at the rates of exchange prevailing as on
that date.
All exchanges differences including year-end translations arising on
capital account are adjusted to the cost of fixed assets

Taxation:

Deferred tax asset and liability in calculated by applying tax rate and tax
laws that have been enacted or substantially enacted by the Balance Sheet data.
Deferred tax assets arising mainly on account of brought forward lasses and
unabsorbed deprecation under tax laws, are recognized, only if there is a virtual
certainty of its realization, supported by convincing evidence.
RETIREMENT BENEFITS:

1) Provident Fund:

Monthly Contributions to recognized provident fund are considered on

actual basis in the accounts.

2) Gratuity:

Contribution towards gratuity on actuarial valuation funded with Trust /

Life Insurance Corporation of India.

3) Deferred Revenue Expenditure:

Major replacements / repairs of parts of machinery is treated as deferred

revenue expenditure and amortized over a period of 60 months.
Payment of Compensation to employees who have retaied under
voluntary retirement scheme is amortized over a period of 60 months from the
month of retirement.

Leave Encasement:

Provision for leave encashment is accrued and provided for on the basis
of an actuarial valuation made at the end of each financial year.

Contingent Liabilities:

All known liabilities of material nature have been provided for in the
accounts expect liabilities of a contingent nature, which have been disclosed at
their estimated value in the notes on accounts in accordance with accounting
standard 29.
Provisions:

As regards provision, it is only those obligations arising from past events

existing independently on an enterprise’s future action that are recognized as
provisions.

CHAPTER – IV

OFFICE MANAGEMENT
INDRODUCTION

The working condition or environment of the office influences the efficiency of

the employees. The office is an important segment in any organization. The
efficiency of workers depends to a great extent on the physical and mental
fitness.

The registered office of Tuticorin Alkali Chemicals & Fertilizers is

situated at “East Coast Centre” 534, Annasalai, Teynampet, Chennai – 600 018.
The famous CPCL (Chennai Petroleum Corporation Limited) is situated at the
next building the head office is working at Harbour Construction Road,
Tuticorin – 628005.

The layout of the office is such that the staffs of any departments are sited
in the opposite directions which enable easier and quicker communication
between the employee and supervision.

Each department is provided with steel filling cabing and wooden cup
boards where confidential files and documents and registers of almost
importance belonging to the respective departments are kept and also for the
frequent reference are stored. The working atmosphere at the office is cheerful
and lovely. The employees are punctual and disciplined in their work.
Location of the Company:
The factory site which is located at mullukadu village, 10 Kms from
Tuticorin town, is adjacent to spic’s fertilizers complex. Salt is one of the main
raw material for the production of soda ash and ammonium, chloride and the
factory has the locational advantage of doing situated in the center of one of the
major salt producing areas in the country.

Communication:

The quarterly, half-yearly and yearly financial results of the company are
forwarded to the stock exchange immediately upon approval by the Board of
Directors and are published in “Business line” and “Makkal Kural”
One of the major functions of the office is communication. High mutable
and motivation only with the help of a good defective means of communication,
it is grouped under 2 major heads, namely:

 Internal Communication
 External Communication

Internal Communication:

It is also Known as “Inter-communication” it relates to transfer of

thoughts, exchange of ideas and messages with the person and department of an
organization.
It TAC, the telephone lines of various department sections such as
personal, secretarial department are inter-connected with each other, it is very
useful and helpful in maintaining communication and relationship between
various departments efficiently.

External Communication:

External Communication is the backbone of modern business. It involves

in exchange of message and information with outside like oral communication
through letters, telex, fax, cellular mobile service etc.
Some of the communication equipments used at TAC are:

1. Fax Machine:

Fax is modern office machine which is useful to transmit the message as

it is any place and to any person. Amount has to be paid for installation and the
amount to be paid for faxing, depends upon the number of words transmitted.

2. Computer:

It is used in all the departments in TAC there is a centralized network between

computer goro EDP department and other department of the company.

3. Telephones:

Telephones are one of the easiest and fastest means of communications. It

is widely used to contract outside world. It is group communication total, the
external telephone lines are provided for higher officials.

4. Type Writers:
The type writer is the most commonly used machines in office of all
kinds. The electronic by purities ensiles enhanced quality of output and super
letter quality of printing while compared with standed and other type writers.

5. Xerox Machine:
The company has got Xerox machine for taking certain of letters received
by the company. Xerox machine help to get exact copies of a document. The size
of the copies can be enlarged or reduced with the help of their machine.

6. Telex:
Telex or telegrams are another familiar form of communication used in
the organization. It forms a written records instead or oral communication on the
telephone. It is easy getting written messages with in as horter time from all over
the part of the country as well as from any part of the world.
 RATIO ANALYSIS

MEANING OF RATIO ANALYSIS

Ratio analysis is a widely-used tool of financial analysis.

It is defined as the systematic use of ratio to interpret the financial statements so
that the strengths and weakness of as firm as well as it historical performance
and current financial condition can be determined. The term ratio refers to the
numerical or quantitative relationship between two items\variables. This
relationship can be expressed as (i) percentages, (ii) fraction, (iii) proportion of
numbers.

The essence of ratio is putting together of two figures to

study their relationship. The study is in the form of analysis, interpretation and
expression of all the ramifications of the relationship.

CLASSIFICATION OF RATIO

I Profitability Ratio
(a) Expenses Ratio

II Turnover Ratio
(a) Stock Turnover Ratio
(b) Fixed Asset Turn Over Ratio
(c) Capital Turnover Ratio

III Solvency Ratio

(i) Short – term Solvency Ratio
(a) Current Ratio
(b) Liquid Ratio
(ii) Long – term Solvency Ratio
(a) Proprietary Ratio
(b) Debt Equity Ratio
(c) Fixed assets Ratio
I. PROFITABILITY RATIO:
Profit earning is the main objective of business, Aim of every business
concern is to earn maximum profit is absolute terms and also is relative terms
profitability depends on sales, costs and utilization of recourses profitability
refers to the ability of the business to earn profit.

EXPENSES RATIO:

These ratios are known as supporting ratios to operating ratio. It is better

for the concern to know how it is able to save or waste over expenditure in
respect of different items of expenses therefore each aspect of cost of sales and
operating expenses are analyzed the financial expenses ratio, very important for
analyzing the profitability of a firm.

Formula:
Financial Expenses
Financial Expenses Ratio = x 100
Net Sales

TABLE 5.1: Showing the computation of financial expenses ratio:

Year Financial Exp. Net Sales

(Rs In Lakhs) (Rs In Lakhs) Ratio in %
2004 – 05 646.18 15825.13 4.08
2005 – 06 564.50 14124.57 3.9
2006 – 07 530.38 7341.47 7.2
2007 - 09 875.73 1442.69 60.7
.
Interpretation:
The ratio during the year 2005 – 06 for total financial expenses in 3.9%.
In the next year 2006 – 07, there is increase by 3.3%.
In the year 2007 – 09, there is higher increase in financial expenses ratio by
53.5%. A control over the expenses in needed as major recourse is spent it the
form of interest.

II.TURNOVER RATIO:
 Turnover Ratio are concerned with measuring the efficiency in asset
management some times, there ratios are also called efficiency ratios or asset
utilization ratios the efficiency with which the asset are used would be reflected
in the speed and rapidity with which assets are converted into sales.

(a) STOCK TURNOVER RATIO:

This Ratio it may be recalled, indicates the number of times inventory is
replaced during the cost of goods sold and the amount of average inventory
stock turnover ratio is obtained by dividing the cost of sales by average stock
ratio is helpful in evaluating and review of inventory policy.

Formula:
Cost of Goods Sold
Stock Turn Ratio =
Average Stock

TABLE 5.2: Showing the computation of stock turnover ratio:

Year Cost of Goods Average Stock

Sales (In Lakhs) Ratio in Times
(Rs In Lakhs)
2004 – 05 13683.02 488.5 28.01
2005 – 06 12851.57 872.81 14.72
2006 – 07 6582.01 864.91 7.61
2007 - 09 3404.3 597.25 5.69

Interpretation:
In the year 2006 – 07 there is decrease in ratio 7.11 times and it shows
inefficiency usage of stock and poor inventory management. Again in the year
2007 – 09 declined by 1.92 times it shows the company as decline in sales
performance of the business. A low ratio would signify that inventory does not
sale fast and stays on the shelf. The ratio indicates very low level of inventory
ratio has serious implications.

(b).FIXED ASSET TURN OVER RATIO:

 This ratio determines efficiency of utilization of fixed assets and
profitability of a business concern.

Formula:
Net Sales
Fixed Asset Turnover Ratio =
Net Fixed Assets

TABLE 5.3: Showing the computation of fixed asset turnover ratio:

Year Net Sales Net Fixed Assets Ratio in Times

(Rs In Lakhs) (Rs In lakhs)
2004 – 05 15825.13 7142.77 2.215
2005 – 06 14124.57 6656.54 2.12
2006 – 07 7341.47 5809.09 1.26
2007 - 09 1442.69 4993.36 0.28

Interpretation:
All the four years the Ratio are decrease. Fixed Assets turnover indicates
the extent of utilization of fixed assets. Achieving high turnover with a given
amount of fixed assets indicates efficiency in management. A steadily growing
fixed assets turnover in the ideal.
(c). CAPITAL TURNOVER RATIO:
Management efficiency is also calculated by establishing the relationship
between cost of sales or sale with the amount of capital invested in the business
capital turnover is calculated with the help of the following formula.

Formula:
Net Sales
Capital Turnover Ratio =
Capital Employed

TABLE 5.4: Showing the computation of capital turnover ratio:

Year Net Sales Capital Employed Ratio in Times

(Rs in lakhs) (Rs in lakhs)
2004 – 05 15825.13 9480.92 1.66
2005 – 06 14124.57 9672.55 1.46
2006 – 07 7341.47 7376.54 0.99
2007 - 09 1442.69 4902.13 0.29

Interpretation:
There is constant decrease in capital turnover ratio of TAC Ltd. from
2004 – 09. Higher ratio indicates higher efficiency and lower ratio indicates
ineffective usage of capital.
III. SOLVENCY RATIO:

(I) SHORT – TERM SOLVENCY RATIO:

Solvency or financial ratios include all ratios which express financial
position of the concern. Financial ratios are calculated on the basis of items of
balance sheet.

(a) CURRENT RATIO:

The Ratio of current asset to current liabilities is called “Current Ratio”,
indicates the ability of a concern to meet its current obligation as and when they
are due for payment. Ideal ratio is 2:1.

Formula:
Current Asset
Current Ratio =
Current Liabilities

TABLE 5.5: Showing the computation of current ratio:

Year Current Assets Current Liabilities Ratio in Times

(Rs In lakhs) (Rs In lakhs)
2004 – 05 5050.13 2954.69 1.71
2005 – 06 5049.11 2155.81 2.34
2006 – 07 3281.58 1836.59 1.78
2007 - 09 2176.39 2268.75 0.95

Interpretation:
The above data it shows year 2006 – 07, ratio decrease by 0.65 times. In
the year 2007 – 09, ratio shows current liabilities have increase, it refers that the
company short term solvency position is not satisfactory which indicates that the
company will not be in a position to meet short terms liabilities. It shows the
ratio is not a conclusive index of the real liquidity of a firm.
(b).LIQUID RATIO:

Liquid asset refer to assets which are quickly convertible and prepaid
expenses are considered as liquid assets. The liquid ratio is a measure of
liquidity designed to overcome the defect of the current ratio.

Formula:
Liquid Assets
Liquid Ratio =
Current Liabilities

TABLE 5.6: Showing the computation of liquid ratio:

Year Liquid Assets Current Liabilities Ratio in Times

(Rs In Lakhs) (Rs In Lakhs)
2004 – 05 2984.7 2954.69 1.01
2005 – 06 2723.13 2155.81 1.26
2006 – 07 1936.64 1836.59 1.05
2007 - 09 1177.09 2268.75 0.51

Interpretation:
The Ideal Ratio is 1:1. The liquid ratio was found to be 1.01 in 2004 – 05.
In the year 2005 – 06, 06 – 07 the ratios are is ideal ratio but in the year 2007 –
09 it is in less than the ideal ratio which is not satisfactory.
(ii) LONG – TERM SOLVENCY RATIO:

(a).PROPRIETARY RATIO:
This ratio comporres the share holder’s fund or owner’s funds total
tangible assets. The ratio indicates the proportion of total assets financed by
owners. In other words this ratio express the relationship between the
proprietor’s funds and the total tangible asset.

Formula:
Share Holder’s Fund
Proprietary Ratio =
Total Tangible Asset

TABLE 5.7: Showing the computation of proprietary ratio:

Year Share Holder’s Funds Total Tangible Asset Ratio in Times

(Rs In Lakhs) (Rs In Lakhs)
2004 – 05 4226.51 12435.61 0.33
2005 – 06 4226.51 11828.36 0.35
2006 – 07 4226.51 9213.13 0.45
2007 - 09 4226.51 7170.88 0.58

Interpretation:
The Proprietary Ratio is the Ratio of Proprietary funds to total assets. It
indicates the strength of financial foundation of the concern it is of particular
interest to the creditors. A high ratio will indicated relatively little danger to
creditors.
(b).DEBT EQUITY RATIO:

This ratio is calculated to measure the relative proportions of out sider’s

funds and share holder’s funds invested in the company this ratio is also known
as External – Internal Equity ratio.

Formula:
Long Term Debts
Debt Equity Ratio =
Share Holder Funds

TABLE 5.8: Showing the computation of debt equity ratio:

Year Long Term Debts Share Holder Funds Ratio in Times

(Rs In Lakhs) (Rs In Lakhs)
2004 – 05 8531.55 4226.51 2.01
2005 – 06 8247.56 4226.51 1.95
2006 – 07 6552.35 4226.51 1.55
2007 - 09 7328.24 4226.51 1.73

Interpretation:
The ideal ratio is 1:1 the data shows that the ideal ratio has been achieved
in all the years. It shows that the company debt equity position is satisfactory; it
made heavy investment in fixed assets and has an assumed return on its
investment.
(c).FIXED ASSETS RATIO:
This ratio gives an idea as to what part of the capital employed has been
used in purchasing the fixed assets for the concern of the ratio is less than one it
is good for the concern.

Formula:
Net Fixed Asset
Fixed Asset Ratio =
Long Term Funds

TABLE 5.9: Showing the computation of fixed asset ratio:

Year Long Term Debts Share Holder Funds Ratio in Times

(Rs In Lakhs) (Rs In Lakhs)
2004 – 05 7385.48 9480.92 0.77
2005 – 06 6779.25 9672.55 0.70
2006 – 07 5931.55 7376.54 0.80
2007 - 09 4994.49 4902.13 1.01

Interpretation:

The ideal fixed assets ratio is 0.67. All the four year the ratio is in
fluctuative trend and it all nearest to the ideal ratio. In the year 2007 – 09 it is
decreased as compared to the previous year which indicates. Indicates that a
portion of working capital has been financed by long term funds.