A PROJECT REPORT ON COMPANY VISIT INDIAN FARMERS FERTILISER CO-OPERATIVE LTD.

(IFFCO)

SUBMITTED TO:V.M.PATEL COLLEGE OF MANAGEMENT STUDIES. GANAPAT UNIVERSITY, KHERVA. SUBMITTED BY:JOSHI AKASH F.Y. B.B.A. ROLL NO:- 34

SHRI V.M PATEL COLLEGE OF MANAGEMENT STUDIES B.B.A PROGRAMME KHERVA

CERTIFICATE
This is to certify that Mr. Joshi Akash of F.Y.B.B.A. Class. Roll no:34, Examination no: satisfactory completed his report attending industrial visit for practical studies during the academic year 2005-2006. Date: Place: KHERVA Professor in Charge: Principal

PREFACE
The industries training from the practical study point of view is very important for a B.B.A students as its brides the gap between the theoretical and practical aspect. Hence, every student has to take industrial training in a business enterprise as per university rule. It gives us an opportunity to relate practical knowledge with real corporate situations. It also helps to improve analytical skill, communication skill and knowledge. The main object of practical training of F.Y.B.B.A level is to gain the training and practical knowledge and develop skill about industrial attitude and ability to perform specified job in industrial environment in a systematic and modern way.

ACKNOWLEDGEMENT
I tender my sincere thanks to IFFCO(KALOL UNIT) to provide me such a friendly atmosphere to reach the destination. I would like to thank my in charge principal Mr.K.M.Chudasma who gave us the opportunity to visit the industry to look at the practical side of management, by whose support and encouragement this report is prepared. I would also like to pay my special thanks to Mr.Vipul Patel and Mr. Maulik Prajapati who guided me for the report. The employees and the office staff of the Company has been a source of information and inspiration to me. They stood by me at every stage. Really, the visit to various industries build the relationship between the world of education and the world of practice.

Joshi Akash F.Y.B.B.A(A) Roll No.34

History of fertilizer industry

In any scheme for boosting agricultural output, the use of chemical fertilizers has an important role. Indias soil through varied and rich is deficient in nitrogen and phosphorus. Two plant nutrients which together with organic manure influence crop return with population rising at a fast rate, the use of larger doses of chemical fertilizers is the only way to augment our food grains production.The new agricultural strategy was based on increase use of fertilizers. Fertilizer industry made rapid progress during the past decade. The production of fertilizer rose from a more 39000 tones in 1951-52 to over 14.4 million tones in 1990-91 and is expected to touch 19.1 million tones in 1999-2000. There has always been much delay in the setting up of fertilizer plants in India because of unnecessary increase in the cost of the project, there is the problem of capital for the fertilizer programme and the government of India was never clear about the role of the private sector in the fertilizer industry. Since the adoption of the new agricultural strategy in sixties the consumption of chemical fertilizer has been growing rapidly. The government has been promoting the consumption of fertilizer through heavy subsidies. There is grate scope for the manufacture of compost from urban waste, other waste materials and also for the use of green manures.All these will help on making soil fertile.

INDEX
PARTICULARS (1) THE COMPANY PROFILE 1.1 1.2 1.3 1.4 1.5 1.6 1.7 General Information History Of Iffco Managing Body Of The Company Organization Structure Mission Vision Main Aim and Approach PAGE NO.

(2) PRODUCTION DEPARTMENT 2.1 2.2 2.3 2.4 2.5 Raw Materials Storage Main Product and Production Process Quality Initiatives TECHNICAL SPECIFICATION OF FINAL PRODUCT 2.6 Production Performance 2.7 Research and development (3) MARKETING DEPARTMENT 3.1 3.2 3.3 3.4 3.5 Competitors Price policy Promotional Activities Distribution Channel Marketing Branch

(4) HUMAN RESOURCES DEPARTMENT 4.1 Classification of employees 4.2 Recruitment and selection 4.3 Training Development 4.4 Wages and Salary 4.5 Promotion and Transfer 4.6 Labour Welfare Scheme In brief (5) FINANCE DEPARTEMENT 5.1 Sources of Fund 5.2 Cash Flow Statement 5.3 Profit and Loss Account 5.4 Balance Sheet 5.5 10 years Financial Highlights (6) IFFCOS OTHER ACTIVITIES

1.1 General Information:Name of the Company Indian Farmers Fertilizer cooperative Limited. Address Indian Farmers Fertilizer Cooperative Limited KALOL, (P.O.) Kasturi Nagar, Gandhi Nagar, PIN 382423 (Gujarat), INDIA. Year of Establishment 3rd nov 1967 Classification of Industry LARGE SCALE INDUSTRY Registered Office 34, Nehru Place New Delhi-110 019

1.2 HISTORY
In India when a shortage of fertilizer was found, Mr. Pal pothan had established IFFCO on 3rd nov. 1967 under the multi unit co-operative societies Act 1942. IFFCO unit was established in Kalol because constant supply of Gas and the facility of water is easily available by the ONGC. IFFCO has been started with the 1000 members. Production process was started in 1975 in IFFCO. The whole plant of kalol is made of Rs. 67 caror. In initally days government has invest 74% out of 100% and other investment was made by takeing a loan from UTI, LIC etc. IFFCO has a membership base of 36,617 (as on March 31, 2003) agricultural cooperatives throughout the country. It is engaged in the production and marketing of chemical fertilisers. Its main objective is to provide quality fertiliser and technical know-how on agriculture to the farmers through its member-cooperatives. The IFFCO has emerged as a fertiliser giant and the undisputed market leader in India for the supply of nitrogenous and NP/NPK complex fertilisers. It operates four large fertiliser plants located in Gujarat and Uttar Pradesh. Keeping in line with the wishes of its members and in tandem with the market needs it has diversified its activities by promoting a general insurance company in collaboration with the Tokio Marine Insurance Company of Japan.

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1.3 MANAGING BODY OF THE COMPANY

CHAIRPERSON:Mr. Surinder Kumar Jakhar MANAGING DIRECTOR:Mr. U.S. Awasthi GENARAL MANAGERS:Mr. A.K. Sinha Mr. M.R. Patel (Technology) Mr. A.K. Singh (P & A) Mr. Shamshare Singh (Production) EXECUTIVES DIRECTORS:Mr. V.K. Bali (Technical) Dr. D.K. Shukla (Transportation) Mr. S.K Mishra (P& A and TSD) Mr. K.L Singh (Kalol) MARKETING DIRECTOR:Mr. D.K. Bhatt FINANCE DIRECTOR:Mr. Rakesh Kapur

AUDITORS:M/s. B.R. Maheswari & Co., M/s. Arun Singh & Co., M/s. J.C. Bhalla & Co., M/s. Rajnish & Associates, M/s. S. Mann & Co.

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BANKERS:Indian Overseas Bank State Bank of India Bank of Baroda Standard Chartered Bank Madhya Pradesh State Cooperative Bank Ltd. The Maharashtra State Cooperative Bank Ltd. The West Bengal State Cooperative Bank Ltd. The Karnataka State Cooperative Bank Ltd. The Punjab State Cooperative Bank Ltd

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1.4 ORGANISATION STRUCTURE OF COMPANY

13

1.5 MISSION

14

IFFCO's mission is "to enable Indian farmers to prosper through timely supply of reliable, high quality agricultural inputs and services in an environmentally sustainable manner and to undertake other activitities to improve their welfare"

1.6 VISION
To augment the incremental incomes of farmers by helping them to increase their crop productivity through balanced use of energy efficient fertilizers, maintain the environmental health, and to make cooperative societies economically and democratically strong for professionalized services to the farming community to ensure an empowered rural India.

1.7 MAIN AIM

15

Strengthening management and participatory character of the Indian Cooperative Movement by using duly tested and appropriate consultancy, advisory and technological interventions sourced from within the country and abroad and in accordance of the Cooperative Principles and in harmony with the law and culture of the land.

APPROACH
To achieve our mission, IFFCO as a cooperative society, undertakes several activities covering a broad spectrum of areas to promote welfare of member cooperatives and farmers. The activities envisaged to be covered are exhaustively defined in IFFCOs Byelaws

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2.1 RAW MATERIALS

17

Raw materials are those basic input materials that are converted into finished product through manufacturing process. The importance of raw materials can be easily visualized when any break in its supply will keep the production lines ideal. The basic raw materials are: Natural Gas Associated Gas Naphtha R-LNG LSHS Caustic soda HCL Sulphuric acid Water IFFCO`S main suppliers are Gas authority of India Ltd.(GAIL), Oil and Natural Gas commission(ONGC) etc

2.2 Main Product and Production Process

18

 UREA AMMONIA DRY ICE BIO

FERTILIZER

PRODUCTION PROCESS

19

 UREA

PROCESS

The 1200 tonnes per day Urea plant based on Stamicarbon Stripping process,
engineered by Humphreys & Glassgow, UK. was commissioned in January 1975. Urea plant was revamped to uprate its capacity to 1650 tpd in the year 1997.The main raw materials required for urea process namely, ammonia and carbon dioxide, are obtained from the adjacent ammonia plant Carbon dioxide first enters a Stripper in which it counter currently contacts the liquid product from the Autoclave. The liquid product from the bottom of the Stripper which is mainly urea solution, passes to the recovery section. Gases from the top of the Stripper enter Carbamate Condenser where ammonia and carbamate solution are also introduced. The ammonium carbamate solution, uncondensed carbon dioxide, the ammonia and water vapours are introuduced into the Autoclave bottom. In Autoclave, conversion of ammonium carbamate in to urea is achieved at 150 kg/cm2 pressure. Product from Stripper is let down to the Rectifying Column for recovery of small amount of unconverted ammonium carbamate. An additional LP condenser is installed in the plant for uprated capacity. To unload the evaporators, Pre-eEvaporator is installed down stream of the Flash tank to concentrate urea solution to 82.6 %. The product urea solution is further concentrated in two Evaporators Prill installed in series to produce molten urea which is pumped to the top of a tower having a total height of 71 metres, from where it is passed into a rotation Prill Bucket. Prills, formed in the Prill Tower, are collected at the base by Prill Tower Scrapper which transfers urea to a conveyor to Prill Cooling System. In Fluidised Bed Prill Cooling System urea is fluidised on perforated plate, heat of hot prills is taken away by air and cooled to 55 deg C (max.).From here it is conveyed to Bagging Plant or to Urea Silo. AMMONIA

PROCESS

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 The plant is designed to produce 1100 tonnes of ammonia per day based on MW Kellogg steam reforming process. Original name plant capacity of the Plant was 910 tpa, which is upgraded to 1100 tpa in the year 1997 after Kalol expansion. Naphtha as well as natural gas is used as feedstock. Naphtha is prereformed in Pre reformer mainly to methane, hydrogen and CO2 and is further reformed in Primary reformer after mixing with natural gas. Natural gas is purified in the Desulphuriser and then mixed with steam and partially reformed in Primary reformer. The Pprimary reformer is supplied with associated gas and naphtha as process fuel. A mixture of gases, coming out from Primary Reformer, enters Secondary Reformer where stoichiometric quantity of air is introduced. The gases leaving the Secondary Reformer contain nitrogen, hydrogen, carbon monoxide and carbon dioxide. These gases are passed through Shift Converters where most of the carbon monoxide gets converted to carbon dioxide. This converted gas is purified in an Absorber where carbon dioxide is absorbed in an aqueous MDEA (methyl diethyl amine) solution. The MDEA (methyl diethyl amine) solution is regenerated in Strippers where carbon dioxide is stripped off and sent to urea plant. The gases are again purified in the Methanator where the remaining small quantities of carbon oxides are converted to methane. The gas after purification is a mixture of mainly nitrogen and hydrogen in 1:3 with proportion.It is compressed and sent to Ammonia Synthesis Converter along recycle gases.

Synthesis Converter is a single piece reactor. In Synthesis Converter nitrogen and hydrogen combine to form ammonia. The gases from the Synthesis Converter are cooled and recycled back to the compressor.

21

 The discharge stream of the compressor is passed through a train of coolers and chillers where ammonia is condensed over chillers and the unconverted gases from the Separator are sent to the Synthesis Converter which is of 3.19 m dia, 27.4 m high and weighs 255 t. A small stream of gases being purged from the synthesis loop is sent to the Purge Gas Recovery Plant where hydrogen is recovered by cryogenic process. This hydrogen is recycled to the synthesis loop. The separated liquid ammonia is purified by further flashing and it is then sent to Urea plant or to an Atmospheric storage tank, having 10,000 or 5,000 tonnes capacity.

DRY

ICE /LIQUID CO2

IFFCO Kalol unit has 6t/d dry-ice plant designed by Borsig, Germany. 22

Liquid CO2 can be produced in dry-ice plant by liquifying gaseous CO2 received from ammonia/urea plants. plant has capacity to liquify 12 t/d CO2. The saturated CO2 gas from ammonia plant at about 0.16 bar and 60 deg C is cooled by washing in a direct contact cooler to condense the water vapour and washing off odour-forming organic impurities etc. The CO2 gas after washing in CO2 contact cooler is compressed dry cylinder compresor from 0.06 bar g to 40 bar g. Alternatively provision is made to supply HP CO2 gas from final discharge of urea plant CO2 compresor at a pressure of 153 kg/cm2g and 120 deg C. HP CO2 gas is let down to a presure of 41 kg/cm2g and temperature of 35 deg C. The CO2 gas from compressor discharge is saturated at 40 bar g and 40 deg C. Water vapour is removed from gas by passing the CO2 gas over an adsorbent bed of silica gel/amumina balls to dew point of -50 deg C. The trace quantities of odour forming organic materials from the dry CO2 gas are removed by passing it through the activated charcoal bed. The pure and dry CO2 gas is cooled and condensed by evaporating ammonia on the shell side of condenser. CO2 at 40 bar g and 0 deg C flows down to CO2 liquid storage tanks. The non condensable such as H2, N2 and CH4 are vented to atmosphere There is one 40 bar g CO2 liquid storge tank of 4.5 t capacity and two no. 22 bar g storage tank each of 17.5 t capacity. For sale of liquid CO2, liquid is letdown from 40 bar g tank to 22 bar g tank.

Dry-ice is a solid form of CO2 lqiuid. Liquid CO2 at 0 deg C is flashed into the top of snow tower, through expansion valve. CO2 liquid is cooled in the U tube of revert gas heat exchnger by flashed CO2 from snow tower to increase the "yield of snow" per pass. 23

 The snow formed inside the snow tower drops into the pressing chamber. piston presses the snow in the pressing chamber to make cylindircal dryice block of about 185 mm diameter and length 200 to 375 mm. the dryice blocks weigh about 8 to 15 kg depending on the length of the blocks. The blocks are wraped in craft paper and stored in an insulated storge to minimise the loss by evaporation during storage. CO2 gas formed in the snow tower passes to the shell of the revert gas exchanger and recycled for producing liquid CO2.

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 BIO

FERTILIZER

A biofertiliser unit was established at Cooperative Rural Development Trust, Phulpur (Uttar Pradesh) in 1996 - 97 and other at Kalol (Gujarat) in 2003-04 with an annual capacity of 75 MT and 165 MT respectively of different cultures such as Rhizobium, Azotobacter, PSM, Azospirillium and Acetobacter. Phosphate Solubilising Micro Organism Several soil bacteria and fungi possess the ability to bring insoluble phosphates into soluble forms by secreting organic acids. They can be applied to and recommended for all crops Rhizobium It is the most important nitrogen fixing organism. It live symbiotically in the root nodules of leguminous plants and supply nitrogen to the plant through nitrogen fixation. Besides, supplying nitrogen to the crop, nitrogen fixed by legume - Rhizobia association would also leave residual nitrogen for the succeeding crops. The beneficiary crops are Groundnut, Soybean, Red-gram, Green-gram, Black-gram, Lentil, Cow pea, Bengal-gram and Fodder legumes. Azotobacter It is non symbiotic nitrogen fixing bacteria recommended for non leguminous crops like Paddy, Wheat, Millets, Cotton, Tomato, Cabbage, Mustard, Safflower and Sunflower. The Azotobacter performs well if the soil organic matter content is high. Azospirillium It is an associative microaerophilic nitrogen fixer is commonly found in association with the roots of cereals and forage grasses. The beneficiary crop include Sugarcane, Vegetables, Maize, Pearl millet, Rice, Wheat, Fodders and Oil seeds. Acetobacter It is a symbiotic bacteria capable of fixing atmospheric nitrogen by living within the sugar plant. They are found in all parts of plant body. It is suitable for sugarcane cultivation.

2.3 Quality Initiatives

25

IFFCO Kalol is conscious about quality of it's inputs and products. A special quality control cell has been established with the state of the art testing facilities. All the raw materials and consumable used in the process are tested against the specifications/ standards laid down. Samples are drawn from various points from the urea/ammonia manufacturing process to optimise output efficiency, minimise losses and to achieve consistency in the product quality. Special care is taken for analysing packing materials and strict quality control is exercised in accepting the same. Quality control cell has got microprocessor controlled gas chromatographs, HPLC with ion analysers, ppm gas analysers, flame photometer, mettler balances, tensile strength testers and complete set of instruments for environmental and stack analysis. Quality of product at destinated points is reconfirmed by sampling and testing. Sample drawn by field staff are analysed by quality control cell an feed back is given to field staff.

2.4 TECHNICAL SPECIFICATION OF FINAL PRODUCT

26

Urea is the most important nitrogenous fertiliser in the country because of its high N content (46%N). Besides its use in the crops, it is used as a cattle feed supplement to replace a part of protein requirements. It has also numerous industrial uses notably for production of plastics. Specification of urea as per Fertiliser Control Order 1. Moisture % by weight, maximum 2. Total N % by weight (on dry basis) minimum 3. Biuret % by weight, maximum 4. Particle size 1.0 46.0 1.5 90% of the material shall pass through 2.8 mm IS sieve and not less than 80% by weight shall be retained on 1 mm IS sieve. If urea is applied to bare soil surface significant quantities of ammonia may be lost by volatilisation because of its rapid hydrolysis to ammonium carbonate. The hydrolysis of urea can be altered by the use of several compound called urease inhibitors. These inhibitors inactivate the enzyme and thereby prevent the rapid hydrolysis of urea when it is added to soil. The rapid hydrolysis of urea in soils is also responsible for ammonia injury to seedlings if large quantities of this material placed with or too close to the seed. Proper placement of fertiliser urea with respect to seed can eliminate this difficulty

2.5 Performance Chart

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Particulars Ammonia Plant Production Urea Plant Production Dry Ice Plant Production Liquid CO2 Production

2000-01

2001-02

2002-03

2003-04 2004-05

303 488 130

322 550 77 662

315 538 83 1009

322 480 69 1341

342 555 22 784

Productwise Production Performance

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7000 6000 5000 4000 3000 2000 1000 0 1990-00 2000-01 2001-02 2002-03 2003-04 complex urea total

Total fertilizer probuction

62 60 58 56 54 52 50 48 1999-2000 2000-01 2001-02 2002-03 2003-04

2.6 RESEARCH & DEVELOPMENT

29

IFFCO Kalol unit has in house R & D set up established since the inception stage of the plant. The R & D laboratory was recognised by Department of Scientific and Industrial Research under Ministry of Science and Technology, Government of India, as in house R & D laboratory in 1985. Initially the R & D work was mainly to meet the plant trouble shooting requirement and for resolving corrosion and microbilological fouling problems in cooling water system. Presently R & D laboratory is working on the production of biofertilisers using area speific bacterial strains. Over a period of time, IFFCO have worked on the following R & D projects : Value addition product in Urea fertiliser. Smooth change over of chromate to non chromate treatment for cooling tower. Use of biotechnology for improvemnt of effluent quality. Use of urease enzyme for the sand consolidation of oil wells for ONGC. Corrossion and microbiological study of cooling water and MDEA system

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3.1 COMPETITORS
31

(1) Gujarat state fertilizer company (GSFC) (2) Gujarat Narmada valley fertilizer co. ltd. (GNFC) (3) Hindustan Lever ltd. (HLL) (4) The fertilizer corporation of India ltd. (FCI) (5) Hindustan fertilizer corporation ltd. (HFC) (6) Madras fertilizer ltd. (MFL) (7) E.D.I passy (India) ltd. (8) Coromandel fertilizer ltd. (CFL) (9) Hindustan copper ltd. (HCL) (10) National fertilizer ltd. (NFL) (11) Krishak Bharti cooperative ltd. (KRIBHACO)

3.2 PRICE POLICY

32

Prices of IFFCO's Fertilisers

(Applicable only within India) (Indian Rupees Per Tonne w.e.f 28-02-2002) UREA N-46% M.R.P. 4830 NPK 10-26-26 8360 12-32-16 8480 DAP 18-46-0 9350 MOP K-60% 4455

Local Taxes Extra, where ever applicable.

Fertiliser Subsidy:The average Indian farmer is poor and is not in a position to absorb violent fluctuations in fertiliser prices. The Indian Government's policies have always attempted to encourage consumption of different types of fertilisers by the average farmer. This is necessary to ensure adequate agricultural production to feed the growing population. Left to market forces, the fertiliser consumption is likely to be affected on account of fluctuations in fertiliser prices. The apprehensions on account fertiliser consumption may be on account of the following:

The Input cost increases the cost of production of fertilisers. This may have adverse impact on the price. International prices of inputs and finished fertiliser products are susceptible to wide ranging fluctuations based on demand-supply factors. In situations of Balance of Payments crisis, the country may face difficulty in meeting the import bill on account of fertilisers. Congestion at the existing ports may also contribute to problems due to the inability to move the material at the rightime. New investment in the fertiliser industry may be discouraged on account of unremunerative returns.

Since any rise in prices can not be fully absorbed by the farmers, the prices of fertiliser products have to be made affordable to them. Direct subsidy to farmers is an administratively difficult task. An alternative mechanism was evolved by which fertiliser industry was provided with a compensatory mechanism. This had given rise to a two pronged strategy of maintaining selling prices of fertilisers at affordable level while at the same time assuring a reasonable return on investment to the domestic fertiliser industry. It is assumed that both production and consumption would be encouraged as a result of this approach.

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Retention Pricing Scheme (RPS) was the mechanism by which the above objectives were proposed to be achieved by subsidising the farmers indirectly through fertiliser producers. This approach proved successful in increasing the production capacities in the country as well as consumption of fertilisers by farmers. During eighties and nineties, substantial investments had come up in Public, Co-operative and Private sectors. In addition, India emerged as a major producer and consumer of various types of fertilisers. However, the Subsidy Burden that resulted particularly in the nineties called for fresh Policy initiatives . These had major consequences for both the production and consumption of mineral fertiliser in the country.

3.3 Promotional Activities

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Agricultural Extention Programmes are an integral part of IFFCO's marketing activities. Various promotional and educational Programmes are conducted by the field personnel under the able guidance of Area/State/Zonal Agronomists, Some of the programmes undertaken are: 1.Programmes to promote balanced use of fertilisers 2.Village Adopotion Programme for bringing all round socio-economic development. 3.Farmers Training at various agricultural institutes and research farms 4.Extension Education Programmes 5. Soil Testing cum Publicity vans

The farmers education programmes of IFFCO are broadly classified as under:

Demonstrations Field Programmes Seed Multiplication Village Adoption.

3.4 DISTRIBUTION CHANNEL

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Distribution of fertilizer mainly through the cooperative system.There are 167 iffco farmers service centers.

State level Apex cooperative Marketing Federation

Some other NCDC Cooperative Societies

Institutional agencies of fertilizers

Farmers(Consumers)

3.5 MARKETING BRANCHES

36

Total sale of fertilizers

37

62 60 58 56 54 52 50 48 46 1999-00 2000-01 2001-02 2002-03 2003-04

Sales performance
4000 3500 3000 2500 2000 1500 1000 500 0 1999-00 2000-01 2001-02 2002-03 2003-04 complex urea

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INTRODUCTION

39

Human resource department is very important form the point of view of the organization. It plays a vital role in the organization. If the human resource is satisfied in every department then there will be improvement in the organization. It helps in the reduction of cost of production and increase the quality of production. By giving the best facility and training they become assets of the company. The human resource management is concerned with developing of human. Human resource management is that face of management which deals with the effective control and use of man power as distinguished from other resources of power. According to French Human resource management is the recruitment, selection, development and utilization of the accommodation to human resources by organization. The human resources of an organization consist of all individual regardless of their role who are engaged in any of the organizational activities.

4.1 CLASSIFICATION OF EMPLOYEES

40

 SKILLED EMPLOYEES:The skill employee have certain kind of education qualification and they are mostly taken in company for specific purpose. Skilled employees like B.Pharm,chemical engineer,M.B.A. etc. UNSKILLED EMPLOYEES:Unskilled employees are those who have employed only for human power they have no managerial skilled. SEMISKILLED EMPLOYEES:Semiskilled employees like B.Sc.,Diploma engineer etc.

4.2

RECRUITMENT

&

SELECTION

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

Methods of recruitments: Post unto I grade shall necessarily be notified to the local/central EE Posts to H1/H2 grade shall be advertised in local newspapers out of which one should be in local language. Posts in grade G2 and above may be advertised on all India basis either in the newspapers or on IFFCOs website Employments activity to constitutes recruitments committee as to approve the their recommendation shall be as under: 1. For all posts in grade H1 and above -MD

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2. For all posts below H1 grade For H0 Mktg. Head for Mktg. division

--

unit HEAD

Due consideration to the considers, whose agriculture land is acquired by IFFCO. Age relation of 3 years as relaxation in qualifying marks by 5% where written examination has been prescribed.

Depends of decreased employee will be entitled to age relaxations of 3 years and relaxation in qualifying marks by 5% where written examination has been prescribed.

Relaxations of 3% marks in educational qualification.

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4.3 TRAINING AND DEVELOPMENT

New employee:-

a. Newly joined persons Apprentice Transferred form other units New recruited officers They required making familiar with plant, culture, instruments, rules & regulation administration, and work environment. b. Skill developments It is done for the person who is directly recruited from collage of study. So they just have bookish knowledge into practical work training is given.

Trainings for Existing employees

They develop skill among employee for new expansion, developments of firm, projects works, medication, change in process etc. Redevelopments: it mean they are job of different departments to a persons will go for instruments plants etc. so this is the kind of redevelopments where the person is being put in various departments. Purpose is to make him perfects in every kind of activities. Which makes him confident & would increase satisfaction & the person does not get tier out his job. 44

 Job relation: They rotate the person in their own departments like example in personal departments person working in welfare will be transferred to transport of industrial relation (IR). IR will look for other departments like administrative work. So this way they get knowledge of every department. a) Lectures/ seminars: b) Motivation c) Communication d) Leadership qualities e) Team buildings f) Group behavior g) Ethics h) Positive work culture development i) Meditation j) Health, Safety k) First Aid l) Yoga Pranayam m) Stress Management There are the areas of subjects on which they give lectures or conduct seminars. This all things play a very vital role in developing good culture in the organization. That will give employees satisfaction from their job. For giving such lectures, they bring some outside who is professor or having a great industrial exposure. Otherwise sometimes they conduct lectures. Any senior officer or any employee who have good knowledge is also allowed to deliver lecture. These all are the way in which they give training for workers, officers supervisors etc.

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4.5 WAGES AND SALARY

Wages is very important for workers. Beside it is the duty of personnel department to tour feeling of enthusiasm in work. Work is a remuneration paid for the service of work. The wages and salary are according to the responsibilities, position status prestige etc.

GRADE (OFFICER)

BASIC PAY (RUPEES) Actual 23750 21500 20000 18500 17500 16000 14500 13500 10750 9100 8200 7600 7100 6600 6400 6050 5650 5300 4900 4100 Increment 600 500 500 450 400 100 350 350 300 250 220 210 175 150 130 110 100 90 80 70 Maximum 28550 26300 25000 23900 22300 20800 18700 18050 16750 14600 12380 11590 10425 9450 8870 8360 7760 7190 6580 5570

TOTAL NUMBER OF INCREMENTS

B1 C0 D0 E0 F0 F1 G0 G1 G2 H0 H1 H2 J0 J1 K0 L0 L1 MO N0 P0

08 08 10 12 12 12 12 13 20 22 19 19 19 19 19 21 21 21 21 21

4.5 PROMOTION
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Competence to discharge the responsibility of each job is the prime consideration for promotion to a post. The judgment of the competence of an individual to discharge his duties will be based on: Academic performance Experience in and outside IFFCO Nature of experience Interview performance Quality of post performance His suitability for the senior position post His potential for future development

D.P.Committee For all posts in grade G1 and above - MD For all posts in grade H1and below - H0 ED (P& A) Details of employees in the zone of consideration for promotion falling under following categories shall be specifically brought to the notice of the members of the DPCs: decision proceedings. Employees who are awareded punishment as a Employees against whom vigilance case is result of enquiry. pending and or being contemplated. Employees who are under suspension, pending enquiry. Disciplinary proceeding are pending or a has been taken to initiate disciplinary

4.6 DEMOTION / TRANSFER

47

In case, the employee is awarded punishment his disability period shall be extended by the following period: a) demotion / reduction in post/grade/pay - 2 years b) Withholding of increments with or without cumulative effect - 1 year Seniority of demoted employee shall be recorded from the original date of entry in the demoted grade not from the date of demotion. Employee brings outside influence in the matter pertaining to his/her service will be debarred from consideration from promotion for a period of one year from the date of his eligibility. Employee refuses to accept promotion, with the change in the place of posting, will be debarred for promotion for 2 years.

4.7 LABOUR WELFARE SCHEME INPERF

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IFFCO is a Multi State Cooperative Society registered under Bombay Cooperative Societies Act (Act 7 of 1925) under Multi Unit Cooperative Societies Act 2002. Being a Cooperative Society, the philosophy of the organization is guided by the Cooperative principles for economic and social betterment through self-help and mutual aid. IFFCO views its human capital as a key source in achieving its vision of becoming the global leader in fertilizer industry. In rapidly changing business environment it has become even more important to create a culture of high performance across the organization, which can be achieved only with mutual care for each others requirement. Apart from paying the best salary in the fertilizer industry the Society has taken special care in designing various needs of its human resource. The different welfare schemes formulated by IFFCO are given herein below. Some of them have their origin linked to different statutory provisions whereas some of them are non-statutory in nature.

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13)

Medical assistance scheme Housing facility House building loan scheme Conveyance advance scheme Canteen Recreation clubs IFFCO cooperative stores Transport facilities Educational facilities Leave travel concession Maternity benefit Cultural activities and sports meets Employees Provident Fund Trust

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14) 15) 16) 17) 18) 19)

IFFCO Employees Group Gratuity IFFCO Employees Benevolent Fund Trust Employees Pension Scheme Post retirement medical benefit scheme Group Personal Accident Insurance Scheme Group Life Insurance Scheme

MEDICAL ASSISTANCE SCHEME:The society has a comprehensive medical benefit scheme for its employees. The employee and his dependent family members are eligible for reimbursement of medical expenses in respect of any ailment, disease, injury, or disability suffered by them. For routine medical treatment the ceiling is as under: No. of family members For 2 family members For 3 family members In case of chronic diseases, Ceiling for routine Medical Treatment(per annum) Rs. 2250 Rs. 4500 specialized treatments,

hospitalization, pathological and radiological tests special medical sanctions are given at actual.

CANTEEN:-

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

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

GROUP LIFE INSURANCE SCHEME:IFFCO has taken a policy from Life Insurance Corporation to provide a death cover to its employees, equivalent to 15 months salary, subject to a maximum of Rs. 1,00,000/-.

Retirement & Termination:An employee must retire after attaining the specified age. In government office the retirement age is 58 whereas in the private sector the age is generally 60 years. An employee may retire before attaining the specified age due to bad health , physical disability, family problem etc. Employee gets the full benefit at retirement.

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INTRODUCTION
In a modern money using economy, finance may be defined as provision of money at the time it is wanted. It is undoubtly thelife blood of the business. The ambition plans of businessman would remain drams unless, adequate money is available. In older days the 52

labor was more important relatively than capital. Therefore capital was not of much consequence. The industrial revolution changed the requirement of capital. All these development made the industry capital intensive. Therefore it is necessary to have sound capital structure. The iffcos finance department works quiet efficiently. Its all records are systematically recorded in the books of account

5.1SOURCE OF FUND

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5.2 CASH FLOW STATEMENT

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5.3 PROFIT AND LOSS ACCOUNT FOR THE YEAR

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ENDED 31ST MARCH,2005

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5.4 BALANCE SHEET OF 31ST MARCH 2005

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5.5 10 years Financial Highlights

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OTHER ACTIVITIES OF IFFCO

(1) Oman India Fertiliser Project (2) IFFCO Kisan Sewa Trust (IKST)

(3) IFFCO - Tokio General Insurance Company Limited (ITGI) (4) Indian Farm Forestry Development Cooperative (IFFDC)

(1) Oman India Fertiliser Project:IFFCO has entered into a Joint Venture Agreement with Oman Oil Company(OOC), Oman for setting up of a Urea - Ammonia Fertiliser Plant at a Capital Cost of US$ 969 million, with a Debt : Equity Ratio of 2:1. The Fertiliser Plant would be located on the east coast of Oman, and have a capacity of producing 16.52 lakh MT of urea per annum and surplus Ammonia of 2.5 lakh MT per annum. Raw Material (Natural Gas) will be supplied by Omani Government under a long Term Gas Supply Agreement. Entire Urea will be purchased by Government of India for 15 years under a Urea Offtake Agreement. Surplus Ammonia will be purchased by IFFCO for 10 years under Ammonia Offtake Agreement.

(2) IFFCO Kisan Sewa Trust (IKST):IFFCO had always been in the forefront of activities for the rescue of victims of natural calamities. Every year significant contributions, both monetary as well as in kind, are made by IFFCO along with separate contributions by the employees. The death and devastation caused by the massive Earthquake in Gujarat, measuring 6.9 on Richter scale on Jan 26, 2001 followed by hundreds of tremors during Jan-Feb, 2001, has shaken the conscience of the nation. IFFCO's Kalol and Kandla units have launched large scale relief operations under the direct supervision of the Managing Director, who rushed to Ahmedabad within hours of the news of earthquake. All the personnel of IFFCO responded to the situation and devoted themselves during the next few months for the relief of victims. Simultaneously, Kandla unit, which was partially damaged was revived and production commenced within a short time.

Objective : A Relief Trust for the Welfare of the Victims of Natural Calamities 61

Kisan Sewa Trust Fund was created out of contributions from: IFFCO Rs 100 million Employees of IFFCO Rs 10 million Cooperative Societies and others Rs 90 million TOTAL Rs 200 million

(3) IFFCO - Tokio General Insurance Company Limited (ITGI)

Activity : General Insurance With the opening up of the Insurance Sector for private investment, IFFCO decided to diversify into General Insurance Business. ITGI was established as a Joint Venture company in the year 2000. IFFCO holds 51% share in the company which has a total Equity Share capital of Rs 100 Crores. 26% of the equity is subscribed by Millea Asia, Singapore, a group company of Tokio Marine & Fire Insurance Co. Ltd. The companys operations at the end of March 2005 were being carried out from 41 locations across the country and it was marketing 48 products in various segments. ITGI has a 100% subsidiary called IFFCO-TOKIO Insurance Services Ltd which commenced operations in Sep 2003. During the year ended 31st Mar 2005 , ITIS contributed Rs 39.84 crores to the business of its holding company. During the Financial Year ending 31st March 2005, the company recorded a Gross Written Premium of Rs. 502 Crores registering a growth of 55% over the previous year. For the year its Profit before Tax increased to Rs 23.64 Crores and its Profit after Tax achieved a figure of Rs 14.72 Crores. (4) Indian Farm Forestry Development Cooperative (IFFDC) Activity Afforestation Projects Development of Primary Farm Forestry Cooperative Societies Indian Farm Forestry Development Cooperative, a multi-state cooperative society promoted by IFFCO, has been implementing afforestation projects in Uttar Pradesh, Rajasthan & Madhya Pradesh. The Society has been floated under contribution agreement signed between IFFCO and India - Canada Environment Facility (ICEF). Development of Primary Farm Forestry Cooperative Societies (PFFCS) is an important activity undertaken

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towards afforestation of waste lands. High participation of women is an important feature of the IFFDC.

(5) Sankat haran bima yojana

With the purchase of each bag of iffco fertilizer from cooperative society the buyer is automatically covered against accident up to an amount of Rs.4000 for one year. Maximum liability limited to Rs.1 lakh irrespective of no. of bags purchased. Premium Re 1 per bag paid by respective manufacturer. Cash receipt is evidence of insurance over.

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MAJOR AWARDS RECEIVED

(1) Twelve Safety Awards from National Safety Council Bombay,Goi (2) Twenty four Safety Awards from Gujarat Safety Council, Baroda (3) Nineteen Awards for safety from National Safety Council, USA (4) Letter of Appreciation from GEB for Energy Conservation (5) Raj Bhasha Award for promoting Hindi and Shreshtra Shatabdi Shield by Rashtriya Hindi Academy (6) Six Awards for Best Overall Performance from FAI (7) Certificate of Honour from Gujarat Safety Council for 3 million man hours without accident (8) Four Awards for productivity from NPC (9) Six National Safety Awards from GOI (10)Three Awards for Best overall Performance from FAI (11) Two Awards for Technical Innovation from FAI (12) Award for Best Production Performance in Nitrogenous Fertiliser (13) Five National Energy Conservation Awards (14) Three Awards for Best Environmental Protection from FAI (15) TERI Corporate Environment Award (16) Best Environmental Excellence Award from Indo-German Greentech Foundation (17) Best Technical Paper Award by FAI

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ENVIRONMENT - THE PRIME CONCERN

Harmonious living with the nature is the call for the day as environmental degradation is sounding catastrophic alarms for all the living things on the earth. The message is crisp and clear. Gifts of nature needs to be preserved for our well being and for the survival of our progeny. This was and has remained the guiding principle of IFFCO. As a part of concern for environment , a number of pollution control equipment and systems were installed alongwith the main plant at the time of inception. Further, in keeping pace with the changing trends, IFFCO have implemented new schemes and technology to combat pollution. Quality of liquid effluent is continuously monitored before it is used for gardening within the plant as well as for irrigation by the farmers of nearby villages. Flamingoes, the migratory birds with fiery wings have found safe abode at solar evaporation lagoons during winter season. This conveys the quality of Environment Management system at IFFCO-Kalol. Ambient air quality is also monitored periodically at different locations of the factory premises. Green belt has been developed in and around the plant to keep the environment clean and one can feel that IFFCO-Kalol plant is in the garden.

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ENVIRONMENTAL MANAGEMENT SYSTEM AT IFFCO KALOL

IFFCO-Kalol unit has sound environment management system comprising of following features: 1. Facilities for effluent treatment 2. Monitoring of environmental quality 3. Implementation of waste minimisation / pollution abatement schemes 4. Well equipped laboratory and EPC cell 5. Green belt development 6. ISO 14001 Accrediction both for plant and township 7. Development of all around awareness regarding environmental issues.

INVESTMENTS OUTSIDE IFFCO

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 Godavari Fertilisers and Chemicals Ltd (GFCL) Paid up share capital : Rs. 32 Crore IFFCOs Equity : Rs. 8 Crore Percentage of Equity held : 25.8 % Plant Site : Kakinada Product : DAP Indian Potash Ltd (IPL) IFFCOs Equity : Rs. 2.68 Crore Percentage of Equity held : 34% Activity : Marketing of Potash and imported fertilisers Industries Chimiques du Senegal (ICS) I & II IFFCOs Equity : US$ 43.4 Million Percentage of Equity held : 19.47 % Plant Site : Darou, Senegal Product : Phosphoric Acid, NPK Fertilisers IFFCO - TOKIO General Insurance Company Ltd. (ITGI) IFFCOs Equity : Rs. 51.00 Crore Percentage of Equity held : 51% Activity : General Insurance Oman India Fertiliser Company (OMIFCO) IFFCOs Equity : US$ 80 Million Percentage of Equity held : 25% Plant Site : Sur, Oman Product : Ammonia, Urea National Commodity and Derivative Exchange (NCDEX) IFFCOs Equity : Rs. 3.6 Crore Percentage of Equity held : 12% Activity : On Line Trading in commodity futures

National Collateral Management Services Ltd. (NCMSL) IFFCOs Equity : Rs. 4 Crore*

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Present percentage of Equity held : 11.76% Activity : Collateral Risk Management Solutions *Subscribed Rs. 2 Crore Others Indian Farm Forestry Development. Corporation (IFFDC) : Rs. 510 Lakhs. Maharashtra State Coop. Bank Ltd. : Rs. 10 Lakh. IFFCO Kisan Bazar : Rs. 5 Lakh. National Coop. Bank of India Ltd. : Rs. 5 Lakh. Indian Tourism Coop. Ltd. : Rs. 1 Lakh. National Films & Fine Arts Coop. Ltd. : Rs. 1 Lakh.

CONCLUSION

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Indian Farmer Fertiliser Cooperation Limited, IFFCO has crossed & achieved all paths of development over all sound position now these days. All these situations represent that IFFCOs future will be bright in coming days. IFFCO believe that we are not just selling bags of fertilizers but also offering a package of Agricultural Practices with complete solutions for the benefit of Farmers.

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