Organisational study on Oil Palm India LImited

TABLE OF CONTENTS

1. Introduction -2-

Objectives of study -3-

Scope of study -4-

Research methodology -5-

Limitation of study -7-

2. Industry Profile -8-

3. Company profile -17-

4. Product profile -24-

5. Organizational chart -28-

6. Departmental Profile -30-

7. Department Study

a. Human Resource Department -31-

b. Finance Department -42-

c. Commerce Department -47-

d. Production Department -49-

e. Project Department -56-

f. Sales And Marketing Department -60-

g. Estates -62-

h. Medical Department -64-

i. Maintenance Department -65-

8. SWOT Analysis -66-

9. Findings and Suggestions -69-

10. Conclusion -72-

Bibliography -73-

Annexures –I -74-

OIL PALM INDIA LIMITED

2

Introduction


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INTRODUCTION

PALM OIL OR PALMOLEIN is the oil produced from the red oil palm tree (ElaeisGuineensis).

Palm Oil is extracted from the pulpy portion (mesocarp) of the fruit of Oil Palm.

Palm Oil is said to be nature‟s gift to the world consumed more than 500 years.Its nutritional

value ,health benefit and value as natural measure continue to be discovered even today. Oil

Palm India Ltd is started as a subsidiary of the plantation corporation of Kerala Limited with the

objective of developing Oil Palm cultivation. The functions of the organization mainly focus on

its departments functioning. The company is a joint venture Government of Kerala and

Government of India.

The study was conducted at OIL PALM INDIA LTD, KOTTAYAM. This aim at providing

management theories and its applications in organizations functions. Organization is the process

of establishing relationship among the members of the enterprise. The relationships are created in

terms of authority and responsibility an organization is an identifiable group of people

contributing their efforts towards the attainment of the goals. People form a groups or

organization to accomplish common objectives and pool their efforts by defining and dividing

various activities.

The companies have several scopes for its development with this study a proper analysis can be

made into the future opportunities of the company. The study is essential to the organization to

get a clear picture about the advancement that be made is the future.

OBJECTIVES OF THE STUDY

The organizational study at OIL PALM INDIA LTD is conducted to get a view about the

functioning of the organization. As the project is a part of M.B.A curriculum a detailed study

about the departments of the company is essential. A mere theoretical study about the business

environments not enough to do an M.B.A.

The organizational study is conducted with the following specific objectives:

To develop a better knowledge about the organization

To understand the organizational culture and prevailing practices


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To know about the functions of various departments

To study financial interpretation of the organization

To know different policies adopted in the oil sector for stress management

To know about the working atmosphere of the company

To get idea about the existing business operations of the OIL PALM INDIA LTD

To analyze the strengths, weakness, opportunities and threats of the organization.

SCOPE OF THE STUDY

The study was conducted at OIL PALM INDIA LTD, KOTTAYAM. The study gives the

detailed information about the company and its product. The company has developmental

programmes for employee and its product. The OPIL is one of the major palm oil producing

company in Kerala and have good demand for its product. However the company has been

facing some more problems. One of the major problems is the low plant utilization. Oil Palm is a

seasonal product then it leading to low plant utilization from August to January. The company

have some another problems. This study gives an insight into the strength and weakness of the

company.

The study was aimed at getting a clear picture of the organization structure to learnhow the

authority flows down the levels of the management. Apart from these present operations of the

company, familiarizing the duties and functions of various departments and how they interact

with each other were the objectives of the study and also to get a practical vision of the

organization apart from the theory which have been learned in the class.

The scope of the study is to get into direct conduct with the working of an organization through

various functions such as:

Human Resource Management

Marketing Management

Financial Management

Project and Operational Management

Production Management

The scope of project covers the essentiality of functioning the above areas.


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IMPORTANCE OF THE STUDY

This study was helpful to provide knowledge for modern office and its function.

It helps to know about various machines used in the factory and office and its function.

It helps us to develop skill required for preparing, maintaining and handling of office record and

its functions.

It gives employment opportunities to a large number of people. Employees are the most

important factors in any organization.

The study will provide an overall idea about the working condition and employee‟s level of

satisfaction regarding various factors like salary, benefit, welfare and working environment.

RESEARCH METHODOLOGY

Research design indicates plan of action to be carried out in connection with a proposed research

work. The research design is simply a specific presentation of various steps in the process of

research. The researcher used analytical research design for his study.

The researcher used both the primary and secondary data collection techniques. The financial

data available from the annual reports and other records. But the functions of various

departments are made available through the primary data collection.

The term „research‟ refers to the systematic method consisting of enunciating the problem,

formulating a hypothesis, collecting the facts or data, analyzing facts and reaching certain either

in the form of solution towards the concerned problem or in certain generalization for some

theoretical formulation.

The nature of the study of this project is analytical study one has to use facts or information

already available and analyze these to make critical evolution of the material. Necessary data had

been mainly collected from the annual reports and records of the company. Relevant information

were also collected from various journals , periodicals, committee reports , connected with this

subject.


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COLLECTION OF DATA

There are two types of collecting data; they are primary data and the sources available, it

becomes primary data. Since they are collected for the first time for the purpose of study it is

primary in nature.

The data for this project was collected from both primary data and secondary data sources.

Sources of primary data

When the researcher trying to collect the data for particular purpose from advantage of the

primary data are they are truthful and further suit the purpose. The collection of the primary data

is very expensive and time consuming.

The primary data collected during the study is the form of method:

Direct interview method

o In direct interview method of collecting data personally with each and every

departmental managers helped in deriving more details about the functions of the

departments.

Observation method

o The production process in the company is come into view through method of

observation. The healthy relationship between the workers and the managers is

also an example of observation method of data collection.

Sources of secondary data

Secondary data are those which had been collected by some other person for their purpose and

published. So the researcher is said to make use of secondary data if he makes use of data

already compiled by some other person. Secondary data are usually in the shape of finished

products. Collection of secondary data has advantages of being less expensive and less time

consuming. Secondary data need not be through scrutiny is to be made about its adequacy

reliability and suitability.

Secondary data are those data collected by others. The data was collected through


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Website

Journals

Annual reports

Magazines

Text books

Company prospectus

LIMITATIONS OF THE STUDY

The following are the limitation of the study:

The companies have restrictions and limitations from the government for the

government for revealing the information.

Technical details are more complicate. So it cannot be completely recorded by the

researcher.

It is difficult to study in detail about an organization within a short period.

Lack of experience about how to do a complete project work.

The company management was reluctant to disclose confidential datas

Possibilities of errors and personal bias in information.

The time provided was limited, so as an in depth study could not be made.

The reliability of the study depends up on the study accuracy of the data in annual

reports.

The reliability and accuracy of calculation depends very much on the information

found in balance sheet and other records.

The study pertains to a single firm so that comparison is not possible.

There is no marketing department

****


8

Industrial Profile


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Industrial profile

Palm oil is said to be nature‟s gift to the world. Palm oil was long recognized in West African

countries and among West African people it has long been in wide spread use it as cooking oil.

Consumed for more than 5000 years, its nutritional value as a natural resource continues to be

discovered ever today. First introduced to Malaysia in 1870 as an ornamental plant, the Elaeis

Guinensis tree, also known as oil palm tree, is now a leading agricultural of a wide range of

processed Palm oil product. Today Palm fruit oil and Palm oil products are used in many food

and non-food applications. They can be used as frying media and making margarines,

shortenings, soap,oleo chemicals and other products.

Oil Palm has a long, colorful history. Most of the planted palm in Malaysia was derived from

four palms established at the Bogor Botanical Garden in 1848.

Palm oil is obtained from Fresh Fruit Bunches (FFB) of Oil Palm Cultivations. There are several

commercial variants of Palm Oil available viz:

RBD (Refined Bleached Deodorized ) Palm Oil.

Crude Palm Oil (CPO)

Palm Kernel Oil

Crude Palmolein

Crude Palm Oil when subjected to refining results to the other fractions. Palm Oil is form

of edible vegetable oil obtained from fruit of Oil Palmtree. It is the second most widely

produced edible oil and now it sine passed Soybean oil and become widely produced

vegetable oil in the world.

Crude Palm Oil (CPO) is obtained from mesocarp of the fruits and depending on the

variety and the age of the Palm oil, to bunch ratio is within the range of 25% to 28%.

Interims of productivity per unit area, the Oil Palm yields of Palm oil per annum is more

than 3700kg/hectare, compared to 875 kg/ hectare for peanut oil and 389 kg/hectare

soybean oil.


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Crude palm oil is extracted from the fleshy portion of the fruit wall while the kernel he

crude Palm oil is deep orange red in color and is semi solid at a temperature of 20degree

centigrade. Palm oil contains an equal proportion of saturated and unsaturated fatty acid

containing about 40% oleic acid, 10% linoleic acid, 44% Palmitic acid and 5% stearic

acid. The unprocessed Palm oil is used for cooking in various countries. Palm oil is a

very source of Beta carotene, an important source of Vitamin A and it contains

Tecopherols and Tocotrienols, a natural source of Vitamin E.

Vitamin A and Vitamin E contents are the highest palm oil in comparsion with any

other types of oil and hence consumption of the same boosts health. By virtue of the high

vitamin contents the “Red Palm Oil is a nature‟s gift for the human begins”.

DEVELOPMENTS

Cultivation

Private sector

The oil palm was planted in Malaysia in 1870. The first commercial planting of oil palm in

Malaysia started in 1917 at Tennamaran estate Selangor.

Development was, however, slow and it took another 50 years before it began to pick up pace.

The impetus came in the late 1950s when the Malaysian Government embarked on a massive

agricultural diversification programme to case dependence on the traditional rubber for export

earnings. Many estates replaced rubber with oil palm and also opened up new lands for the

cultivations of oil palm.

Within a relatively short time, the planned areas under oil palm increased tremendously. In 1960

the total planted area was 54700 hectares it had reached 300,800 hectares. In 1993 a total of 2.3

million hectares had been planted and by the year 2000 about 2.9 million hectares are expected

to be planted with oil palm.


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Public sector and independent small holders

Originally, the cultivation of palm oil was limited to the plantation sector because of high level

of organization and capital investment required. The success of the Government land

resettlement schemes, started in the 1960, marked a pioneering effort towards introducing the

crop to smallholders. At the forefront is the Federal Land Development Authority (FELDA).

Other agencies involved include the Federal Land Consolidation and Rehabilitation Authority

(FELCRA), and the State Economic Development Corporations (SEDCs)

ADVANTAGES OF PALM OIL

Reliability of supply

Being a perennial tree, the palm oil is harvested throughout the year. Its productivity per hectare

per year is very high. Palm oil has the advantage of reliable and regular supply compared to

some oils from annual crops.

Range of products

Technology has provided the industry with processing and fractionation techniques capable of

turning out wide range of products to suit consumers manufacturing requirements.

Versatile and Superiority

Its versatility makes palm oil a suitable raw material for many applications both in edible and

non-edible products. It has the flexibility to be used as it or in fractionated forms. Its resistance to

deterioration and rancidity makes it an excellent oil for deep flying.

Cost Benefit

Being naturally hydrogenated, palm oil requires minimal hydrogenation or none, whereas other

oils need to be hydrogenated. Furthermore, it is a natural product which contains no chemically

produced leans acid isomers which are produced in the hardening of liquid oils.


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Nutritional value

Palm oil is one of the world‟s most widely consumed edible oils. Like other vegetable oils, palm

oil is cholesterol free, easily digestible, absorbed and utilized by the human body.

Since 1987 palm oil Research Institute of Malaysia has pursued a policy of supporting research

on the nutritional and health aspects of palm oil throughout the world. The consensus from the

findings of numerous human and animal feeding studies is that Palm Oil is indeed wholesome

and safe and its consumption in the habitual diet not only posess no risk to the development of

coronary heart disease but may even offer protection in view that the oil raises the level of the

good high density lipoproteins and lowers the levels of the bad low density lipoproteins.

In addition there is now increasing evidence to show that the minor components of Palm

oil such as the vitamin E, tocotrieols, and the carotenoids have several beneficial physiological

properties that are associated with a reduction of risk to coronary heart disease and some forms

of cancer.

Nature of the business

Known to be the most productive oil crop, a hectare of oil palm can produce 5 tons of crude palm

oil. This is 5 to 10 times more than yield of any commercially grown oil crop. With the potential

, a palm oil industry in the Philippines at full- scale development could pay a significant role in

improving one balance of payment through the production palm oil as import substitute and as a

major export. It could also pay a leading role in the government‟s efforts of effecting the

amelioration.

Impoverished masses of nuclear farms and milling plants were set up in strategically in 304,350

lectures throughout the Mindanao areas identified by the southern Philippines . Development

authority as feasible for this crop and farmers, organized as cooperatives, participate as out

growers for the nuclear farms, nearest to them. The nuclear farms provides technologies and

planting materials , supervises their farming activities and buys their product for processing by

the milling plant into the crude palm oil and kernel oil for the domestic and export market.


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Palm fruit oil is consumed worldwide in more than 100 countries. In some part of the world,

palm fruit oil often still consumed in its undefined state, as an ingredient of traditional dishes

where it contributes its characteristic golden red color and unique flavour. However, to most

users, palm oil is more familiar as a refined vegetable oil product purchased at their local store

product, incorporated into their every day foods…

CURRENT SCENARIO

Palm oil unique composition makes it versatile in its application in food manufacturing and in

the chemical, cosmetic and pharmaceutical industries. Its semi-solid physical properties are

needed in much good preparation. Its non-cholesterol quality and digestibility make it popular as

base material in the manufacture of various non-edibles products.

In the food industries, palm oil is the choice for manufacturing solid fat products. Palm oil olein

and stearin and popularly used worldwide in making, margarine, shortenings and confectionary

and in frying snack foods.

Palm oil is cost- effective as it needs not go through expensive hydrogenation process. Its high

content of natural antioxidants and its stability at high temperatures make it excellent as a deep

trying medium. It also gives fried products a longer shelf life while its bland taste beings out the

natural flavors of food.

Palm oil is also used in manufacturing of soaps, detergents and other surfactants. It is a good raw

material producing oleo chemicals, fatty acids, fatty alcohols, glycerol and other derivatives for

the manufacture of cosmetic, pharmaceuticals, households and industries products.

Oleo chemicals manufactured from palm oil and palm kind are now popular for the

manufacturing of environmentally friendly detergents as they are readily biodegrade.

LIST OF TOP MANUFACTURES IN THE WORLD

Asian Plantations, Philippines

Oil Palm India Ltd

Ricol Mills Corporation


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Universal Robina Corporation

RFM Corporation

Mine Oil Mill Corporation

Oleo Fats

Royal oil Products

Pacific Oil Products

The above companies, except the Oil Palm India Ltd, which are engaged in downstream

processing of crude palm oil, produce the following:

RBD (Refined Bleached and Deodorized) palm oil

RBD Palm Olein

RBD Palm Sterain

Hydrogenated Palm Oil

GLOBAL SCENARIO

Palm oil with an annual production of 25-27 million tons is second most

produced in the world.

Malaysia (13 million tons) and Indonesia (10 million tons) are the major

producers. They together account for 85% production.

Around 80% (21-23 million tons of global production is exported.

Malaysia and Indonesia 12-12.5 and 6 million tons respectively are major

exports.

India, China and EU are the major importers

Price competitiveness has been reason for increased consumption of the

oil.


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Important world palm oil markets

Bursa Malaysia Derivatives (BMD) is the largest futures market for crude palm oil.

Malaysia & Indonesian FOB prices set the mood in the physical market.

The 1980s saw a big shift of markets where by a large portion of the processed product was

exported to developing countries such as India, Africa, including Iraq and Iran, China and South

Korea.

INDIAN SCENARIO

India imports roughly 2.5-3.5 million tons of Palm Oil and its variants a year.

India imposes 65%duties on crude oil and 75% (imposed in 2003-2004 Union

Budgets) on Refined Bleached Palm Oil. The import ratio is highly dependent on

the duty imposed.

In addition to the customs duty, Government of India also imposes tariff value, on

which the customs duty is calculated irrespective of the actual price at which the

oil is imported.

In 2002-2003 India imported 21.5 Lakh ton of crude palm oil and 3.15 Lakh ton

of Refined Blenched Palm Oil. However in 2003-2004 till July from November

03 India has imported 13.5 lakh ton of crude palm oil and 4.8 lakh ton Refined

Blenched Palm Oil.

Kandla Mumbai, Kakindan are the major ports for palm oil entry to india and

major trading points too.


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Factors influencing palm oil price

The supply- demand and price scenario of competitive oils, via Soybean oil.

The supply- demand scenario of all oils seeds in consuming centers.This is from these

countries.

The palm oil production cycle: April-December is peak production period.

Import regulation imposed in the importing countries.

Buyers of crude palm oil are as follows

Parison

Hindustan lever

Wipro Ltd

Godrej

SSD Oil Palm

The main buyers of Kernel Oil are as follows:

Triveni Oil Industries

Godrej

Agrovet Ltd

Palm Kernel India Ltd

***


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Company Profile


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COMPANY PROFILE

Oil Palm India Ltd was established as a subsidiary of Plantation Corporation of India Ltd in

1977. Subsequently in 1983 this became independent unit as a joint venture of the Kerala with a

share participation of Rs. 499.29 Lakhs and Rs. 679 respectively. The company was established

with the objective of developing oil palm cultivation in the state and to find a solution for the

shortage of oil. Company has got atotal area of 36 acre hectares of plantations spread over three

estates – Yeroor (2029.87hc), Cithara (1225.65hc)and Kulathupuzha (390.12hc) all in Kollam

district apart from this one for the production of hybrid variety of palm trees, aseed garden is also

set up at Thodupuzha. Initially it was intended to cultivate oil palm in 6000 hectares of land.

However due to the constraints in getting land allotted by government. The plantation has limited

to 3640 only and could not develop further cultivation since 1984.

For the processing of fresh fruits bunch (FFB) a mill was established with the state of the art

technology at an outline of Rs. 180.92 crores in the year 1999. The factory has the processing

capacity of 20 ton FFB/hr.

As part of the expansion activity, company has set up Oil Palm Seed

Garden at Thodupuzha with the financial assistance of Central Govt. and State Govt. under the

Oil Palm Development Programme.

Modern Processing Mill

The company has established a modern processing mill to process 20MT FFB/hr during the year

1998 with a total investment cost of Rs.19 crores. This is the largest oil palm mill in the country.

The company is now able to produce high crude palm oil from the FFB produced in its estate and

also procured from oil palm development programmeframers. A captive a power station is also

set up for the generation of electricity. The fibre of palm fruits is used as fuel, for generation of

steam to run turbine generator.


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Palm oil form an essential part of oil palm industry. They are located in the close proximity to

plantations because FFB will process soon after harvesting its quality old is to be obtained.

Oil Palm Seed Garden

Considering the fact that there is a bright future for the development of oil palm in the

country and consequent demand for hybrid seeds, the company has established almost modern

oil palm seed generation centre at the seed garden in Thodupuzha. The production and sales of

hybrid seeds have already been started. This is the premier institution in India which is capable

of producing high quality Tenera seeds. Major chunk of the demand for the seeds in the country

has either been net by import and in view of the commission of the project, the import of the

seeds can be substantially bring down. Hence the project has a pivotal role to play for the supply

for seeds for the development of oil palm cultivation in the country. About 5.50 lakhs are

produced in the garden at present. The production of seeds can be increased to 15 lakhs within a

span of 5 years.

Share Capital

The company has an authorized share capital of Rs. 120,000,000 and the paid up capital of Rs.

117,876,000.

The share holding patterns are as under:-

Government of India: 49,929 shares of Rs. 1000/- each.

Government of Kerala: 67,947 shares of Rs.1000/- each.

Mission

The main mission of the Oil Palm India Ltd is to develop Oil Palm cultivation in the state to find

solution for the shortage of oil. And to develop the company as a farmer friendly organization

and for giving employment to people who are lower grade in the society.


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Vision

Promote oil palm cultivation in small farmers holdings and introduced a new crop among the

farmers. To produce edible quality palm oil and production of various by products using the

waste material, after the extraction of the crude palm oil.

Objectives of the Company

To take over and run the oil palm plantation corporation of India Limited and that

established or cultivated by the government of Kerala or by any other person for the

purpose of carrying on the objects.

To engage in and carry on the business of planter, grower and cultivator of oil palm ,

areca nut , coconut and other palms, groundnut , cocoa, rubber, tea , cardamom, tobacco,

cashew, pepper, ginger, tapioca, eucalyptus, sugarcane, cotton and or any other

agricultural/ industrial crop or produce.

To process and render all marketable produce grown by the company and to carry on the

business of processing, manufacturing and dealing in palm oil and other oils and any

other products in which oil or any other produce of the company is used.

To sell, purchase, export, import deal and trade in all produce grown or processed by the

company and all products manufactured by the company and other products used for the

purpose of growing, processing or manufacturing such products.

ESTATES

The company has got a total number of 3646 hectares of plantation spread over in 3

estates viz: Yeroor, Kulathupuzha and Chithera all Kollam District. Apart from this , for

production of hybrid variety of palm oil seeds , company has set up an oil palm garden at

Thodupuzha with the financial assistance of state government and central government

under oil palm development programme. The area in each estate is as follows:

SL NO Name of Estates District Area in Hectares


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1 Yeroor Kollam 2029.87

2 Chithara Kollam 1225.65

3 Kulathupuzha Kollam 390.12

Board Of Directors

ADV. V .B. Binu Chairman

K.N. Ravindran Managing Director

Rachel Philip Additional Secretary (Agriculture)

S.L. Bhat Joint Secretary

Dr. M. Kouchubabu Director

MammenIype Ex- MLA

K.T. Kunhahammed Ex – MLA

SasidharanPilla Additional secretary to government

S. Jayamohan Director

M. SalimDirector

V. M. Joseph Secretary

Government Officials

UpmaChowdhary IAS

C. S. Yalakki IFS

OIL PALM DEVELOPMENT PROGRAMME(OPDP)

Oil palm is capable of yielding 3.5tons of oil/Ha with good management all most 5-8 times

higher than other oil seeds crops give only an average yield of 600kg to 100 kg of oil/Ha. Hence

the potential of development of oil palm is unquestionable. In order to bridge the gap between

demand and supply of edible oils cultivation of oil palm was taken up seriously by Technology

Mission and Oil seeds and pulses (TMOP) to attain self reliance in edible oils Govt. of India

under TMOP introduced oil palm cultivation through Oil Palm Development Programme(OPDP)


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in the identified potential areas of 11 states under integrated scheme of Oil seeds, pulses, Oil

palm and Maize(ISOPOM).

Oil Palm India Ltd is the nodal agency for the cultivation of oil palm in small and marginal

farmers and under OPDP scheme the centrally sponsored integrated scheme of oil seeds, pulses,

oil palm and maize.

The cultivation of oil palm in the state under the OPDP scheme connected during 1999-2000 and

covered 1300 Ha in 3070 farmers‟ field. Besides this Govt. of Kerala accorded sanction for

cultivating an area of 576 Ha from the year 2008-2009. In addition to this Govt. of Kerala

accorded sanction to cultivate oil palm in1000 Ha of Northern Malabar Districts (Malappuram,

Kozhikode&Wayand) under this scheme,

SL NO Districts Area Farmers SC/ST

Farmers

Women

Farmers

1 Trivandrum 11.20 4 6

2 Kollam 134.83 371 10 56

3 Pathanamthitta 311.48 954 8 152

4 Alappuzha 126.10 354 3 64

5 Kottayam 159.31 281 7 55

6 Ernakulam 88.25 279 4 26

7 Malappuram 63.79 81 9 18

8 Kozhikode 176.95 409 7 62

9 Wayand 228.08 337 61

TOTAL 1299.99 3070 54 424

PERFORMANCE OF OIL PALM INDIA LTD

Oil Palm India Ltd is a profit making company for the last 15 years and paying dividend to the

Central & State Govt for the last 12 years. Production and scale of crude palm oil over last 6

years are given below:


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Period Qty of Oil production

(MT)

Qty of oil sold(MT) Revenue(Rs.in Lakhs)

2006-2007 6773.00 6833.46 2353.58

2007-2008 5792.216 5445.21 2101.95

2008-2009 7370.500 7950.650 3436.25

2009-2010 6604.5 6354.17 1971.82

2010-2011 6881.00 6864.66 2577.35

COMPETITORS

At present Oil Palm India Ltd has the advantage of “No Competitors in Kerala”.

AWARDS RECEIVED BY THE COMPANY

The “Kerala State Productivity Council” has awarded the second “Best Productivity Award”

among medium industries in the state during the year 2002-2003 and “Best Productivity Award”

during the 2004-2005 among medium industries in the state recognizing the achievements and

efforts made by the employees.

FUTURE PLAN

At present Oil Palm India Ltd producing only Crude Palm oil. The company is planning to

establish a refinery. So that refining can be done and edible quality palm oil can be produced.


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Product Profile


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Product Profile

Oil palm is the richest source of oil. Oil Palm India Ltd was established in the year 1977 with the

objective of propagating oil palm cultivation in the country and more particularly in Kerala. The

various varieties that are marketed under the Oil Palm India Ltd are given below:

Crude Palm Oil

Palm Nut

Kernel Cake

Palm Kernel

Oil Palm India had products in its early stages. But now the company produces only two

products i.e. Crude Palm Oil and Palm Kernel.

Crude Palm Oil(CPO)

Palm Oil is one of the most commonly used vegetable oils. Oil Palm are grown in tropical

countries. Mainly South East Asia, India and some African and South American countries.

Before being refined, oil is called Crude Palm Oil.

Palm oil or palmolein is the oil produced from the red oil palm oil tree.The crude palm oil is

deep orange red in color and is semi solid at a temperature of 20 degree centigrade. Palm oil or

polyolefin is the oil is the oil produced from the red oil palm tree (ElasisGuincensis). Palm oil

extracted from the pulpy portion(Meso carp) of the fruit of oil palm. Palm oil contains an equal

proportion of saturated and unsaturated fatty acid containing about 40% of oleic acid, 44%

palmitic acid and 5% stearin acid.

Palm Kernel

Palm Kernel oil is “tropical” oil derived from seeds of oil palm tree fruit. Because this is mainly

a saturated oil (80%-85% Saturated)and low in essential fatty acids, palm Kernel oil may be

heated without the risk of creating harmful breakdown products(as is the case within saturated


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oils, when heated) palm kernel oil is saturated oil, some research conducted in areas ripe with

live palm trees(where very flesh palm kernel oil is available) indicates that a diet high in tropical

oils may decrease cholesterol level, however other research contradicts these finding. As with

other saturated oils, palm kernel oil (especially refined palm kernel oil) should be used in

moderation or avoided in one‟s diet.

Palm Oil is of interest both- commercially and technically for the following reasons:-

It is readily available

It is economically priced, although straight comparisons of commodity prices don‟t tell

the whole story. Refined palm oil from Malaysia should be compared with partly

hydrogenated soybean oil.

It is a source of the solid fat needed for the functionally of many food facts, without the

cost of hydrogenation and the concomitant formation of translate fatty acids.

Palm mid – fraction is a major component of cocoa butter equivalent fat.

Palm oil and palm oelin have good stability at frying temperature. Large scale industrial

frying in Europe and Asia is properly the largest application of palm oil.

It is available in bulk in fractionated form. In addition to regular palm oil and palm

stearin, special oleins with iodine values up to 65 are available and a whole range of

softened, hard strains.

Uses of Palm Oil

Palm oil is very versatile oil with a range of distractive properties which enable it to meet

most of the technological requirements for formulating fat products.

By fractionating palm oil, it uses are further increased. Hydrogenation and

interesterificationincrease in usage even there especially in making specialized and

sophisticated edible products.

Palm oil is the liquid fraction obtained by fractionation of oil palm oil after crystallization

at a controlled temperature. The physical characteristics of palm oil differ significantly

from those of palm oil it is available in a wider range of fatty acids and triglycerides

compositions. The hard fraction, palm stearin, is a very useful source of fully natural and

hard fed component for products such ad shortenings, party margine, venaspathi etc.


27

Use are classified into edible and non-edible uses.

EDIBLE USES

Margarine

Frying fat for snack foods /fast foods

Vanaspathi

Non- diary creamers

Ice cream

Cocoa butter substitute

NON-EDIBLE USES

Soap and detergents

The following table shows the price of crude palm oil and palm kernel produced by Oil Palm Ltd

during the year 2010-2011. The price of the products varies according to the quality and features

of it.

ITEM QTY(MT) AMOUNT(LAKHS)

Crude Palm Oil 6864.66 2577.35

Kernel Oil 560.962 336.92

Palm Kernel 391.37 55.07

Total 7816.992 2969.34


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Organizational Chart


29

ORGANIZATIONAL CHART OF OIL PALM INDIA LTD

Managing Director

Senior

Manager

(F&A)

Manager Accounts

Jr. Accountantz

Senior Manager HRD

Ministerial Staff

Senior Manager

(SALES & MARKETING)

Ministerial Staff

Senior production

Manager(Engg)

Manager

(Factory)

AM (Cons)

Draftman

Engg:

Supervisor

Deputy Manager

AM (main)

Production

supervisor

AM (Operation)

Technical supervisor

Workers


30

Departmental profile


31

DEPARTMENTAL PROFILE

Departmentation is the process of grouping activities into nits for the purpose of administration.

In other words, it denotes grouping of related jobs and activities without violating the principle

of homogeneity over which an executives has authority to exercise and assert.

Every organization needs a well established administrative set up for efficient functioning. The

OPIL has established finance project, human resource development, commercial and engineering

departments are under the supervision of experienced and competent officers. All the

departments are under the control of department heads that are controlled by managing director.

The main departments in Oil Palm India Ltd are

Human Resource Development

Finance Department

Commercial Department

Production Department

Sales and Marketing Department

Project Department

Estates

Medical Department

Maintenance Department

HUMAN RESOURCE DEPARTMENT

Personal Department (HRD) plays an important role in the proper running of Oil Palm India Ltd.

Personal management is concerned with the human resource of the enterprise-Everyone from the

Managing Director to Chief Executive of the enterprise to the Mechanic, Sales man or Clerk is

personnel and is a part of the human resource of the enterprise. The primary responsibilities for

personnel management must be assumed by top management of the enterprise. The various

aspects of personnel function are procurement, development, compensation and motivation of

the personnel. Every manager has some responsibilities towards these areas, bent now it has been

recognized that these functions cannot be the specialty of every line manager.


32

The personnel manager organizes the personnel department to carry out the functions entrusted

to him. Personnel department develops the source of recruitment, selects the people and helps the

line managers in rectifying placements in devising a suitable transfer policy. Personnel

department is also responsible for training and development of the employees.

DEPARTMENTAL CHART

All the data of employees of the company are maintained by this department Senior Manager

(HRD) is the head and he is assisted by ministerial staff.

This department mainly deals with the process of planning, organizing, directing, and controlling

the procurement, development, compensation, integration and maintenance of human resource to

the end that individuals organizational and social objectives are accomplished. HR is the most

important assed of modern organization. Its aims are to bring people together to develop an

effective organization.

Human Resource Department is responsible for maintaining and ensuring the availability of

adequate human resource for the effective functioning. In order to attain the objectives of the

organization and division should ensure the maximum utilization of human resources through

Office Attendant

Junior Assistant

First Assistant

Senior Assistant

Senior Manager


33

jobs of employees. Human resource department is also responsible for the growth and

development of employees through the achievements of their careers goals.

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

Employment

Training and Development

Compensation

Integration

Working conditions

Welfare services

Personnel records

Industrial relations

DETAILS OF EMPLOYEES

The strength of employees of Oil Palm India Ltd

SL NO Category of

Employees

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011

1 Officers 30 29 29 29 34

2 Staff 131 138 134 151 142

3 Workers 771 773 799 727 663

TOTAL 932 940 962 907 839

RECRUITMENT PROCEDURE

For recruiting staff at Oil Palm India Ltd is done through internal and external sources.

INTERNAL SOURCES

The internal source of recruitment is done through:


34

Promotions

Transfers

EXTERNAL SOURCES

The external sources of recruitment is usually done through outside preview such as

Inviting tenders

Directly made by the company

Kerala Public service commission

Employment exchange

Professional employment exchanges

Advertisement

Notification in company notice board

Here staff selection in the previews of PSC and Employment exchange.

Managers are appointed through professional employment exchange and giving advertisement in

news papers. Factory labors are outside the preview of PSC and they are appointed directly by

inviting tenders through news paper, notice board etc.

AGE LIMITS

The main age limit for direct recruitment to the posts borne on the roll of the company will be 18

yrs and the maximum age limit unless otherwise specified will be 35 yrs as on 1st January of the

year in which recruitment is effected subjected to the usual relaxation to the O.B.C, S.C and S.T

communities, Ex- serviceman etc as in Govt. from time to time.

SELETION

Selection process is as follows:


35

Various techniques are adopted for the selection of candidate for the post application blank in the

company. Through this process the detailed bio- data of the applicant is obtained and their by his

educational qualification and previous experience if any can be identified. For clerical/staff post

usually Public service commission is authorized to make written test. There is a paid that

includes 3 Government Nominees and 2 Board of Director to conduct the employment interview

it there are more candidates. The company is following strict rule of conducting a medical

examination of the candidate to make assure that he is physically fit. As the organization is a

joint venture of Central Govt and State Govt (public sector) the selection is subject to the

reservation policy of the government.

TRAINING AND DEVELOPMENT

The Human Resource Department of Oil Palm India Ltd is giving periodical training to their

employee.

Training is usually given in 2 forms

In House training (On the Job Training)

Sponsored Training (Off Job Training)

Employment Contract

Job Offer

Physical/ Medical Examination

Employment Interview

Written Test

Preliminary Interview


36

In house training is carried out by:

National Productivity Council

National Safety Council

Management Association

These training usually given 2 or 3 times in an year. The training conducted in the organizational

itself. The representative of National Productivity Council, National Safety Council and

Management Association is appointing expert personnel as trainees. They are taking practical

and theoretical classes for the employees.

SPONSORED TRAINING

This training is usually given to managers and officers, outside the organization. This is

periodically conducted for developing new still and knowledge. The officers and managers are

given training in Malaysia, Nigeria etc. Some authorized institutions are sponsoring this training.

Remuneration and Pre-Requisites

BASIC PAY

Basic pay fixed for the post and if there is a time scale, the stage is fixed in the time scale.

An employ in the time scale of pay promoted to a higher scale of pay shall draw as

initial basic pay on the new scale.

INCREMENT

1) In an incremental scale the increment in basic pay shall occur on the completion of

each specified period of service is provisional, temporary, probationary, officiating or

confirmed.

2) The period of service of an employ spend on an extra-ordinary leave on loss of pay

except sanctioned on medical group will not counter for increment.

3) Increment shall be sanctioned by M.D.


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4) The board on grounds specially recorded may sanction to an officers, holding a post

in a time scale, premature increment with in a scale as a recognition of outstanding

ability at any time and when such premature increment is give the next and when

such premature shall not affect the seniority of any other employ. When occurs and

When payable. When an office is probation , increment will because due only after

5) completion of probation.

Contributory P.F

Subject to the provision of the contributory P.F act and rules the company will have a scheme of

contributory.P.F in which the employ contribution will be up 8 1/3 of the employment of the

employ as defined for the purpose in the E.P.Fact waiving a ceil ling of Rs 1600/- stipulated in

the act.

Termination

The company may at any time terminate the service of an officers giving 3 month notice for the

payment of usage in the lien of such notice. The service of probation and a trainee may be

terminated without notice and without assigning any reason thereof.

Resignation

An officer can resign from the service of the company after giving 3 months in writing or on

payment of 3 months‟ salary lien of such notice.

Gratuity

The maximum amount of gratuity payable shall be Rs 36000. The salary for the purpose of

gratuity shall mean total emoluments of the employ including basic pay and D.A but does not

include H.R.A, Bonus, ones times etc.

Medical expense reimbursement


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The M.D or any officers to who this power is delegated by the M.D may pass bills produced by

the employees who are not covered by the ESI or plantation labor act connected with medical

consultation attention or treatment for Him/her and or any member.

PROMOTION

All promotions to posts will be strictly on selection and the same will be made on the basis of

merit and ability. Promotion in the organization is based on overall assessment.

Seniority

Test

Interview

Attendance

Performance ete

Each of these criteria carries grades of itself. No employee has right for promotion to any post

solely on the ground of his seniority or in any grade on the ground of his having is held

additional charge of a post of having actual in the post or on any other ground. All promotions to

posts will be strictly on selections and the same will made on the basis of merit and ability.

However seniority will be counted when merit and ability are approximately equal.

An employee who promoted shall be holding post to which he is promoted in an officiating

capacity for a period upto 6 months on duty,subject from time to time by Personnel Manager or

officer authorized by Managing Director.

WELFARE OF EMPLOYEES

In each estate it includes one welfare officer that provides service for the welfare of employees.

the welfare department is functioning by providing medical facilities to the employee in factories

and estates , it includes an hospital for this purpose. The hospital having service of male and

female Doctors and Ambulance service. The welfare department is providing scholarship for the

children of staff and lump sum grant, pension gratuity, bonus, advance,provident fund for

employees. The company has provided a school bus for the school going employee‟s children.


39

TRADE UNIONS

Trade unions in any industry are working for the benefits of its members. Likewise , trade

unions in OPIL play an important role in the implementation of labours welfare measures and in

acquiring the privileges of the workers. There are 7 trade unions functioning in the company

which workers trade union and staff trade union.

Workers trade union are

Quilon District Plantation workersUnion(CITU)

Kerala State Oil Palm Plantation Labour Congress (INTUC)

All Kerala Oil Palm Plantation Workers Union(AITUC)

Staff trade unions are:

Oil Palm Employees Association (CITU)

Oil Palm Plantation Staff Congress(INTUC)

Oil Palm India Plantation Staff Association (AITUC)

Oil Palm Employees Centre

SAFETY REQUIREMENT

1) An employee should report to his/her immediate supervisor, at the time of an accident

even though it is a minor one.

2) An employee is liable to use equipment and dresses and follow the safety measures taken

by the management.

3) The employees are allowed to do their duty and use machine which are allotted to them.

4) Every employee should use the safety equipment allotted bythe management. The

equipment is not allowed to take for personal requirement.

Leave Joining Time and Holiday

Subject to the provision of these rules the following kinds of leave may be granted to an

employee of the company:

1) Casual Leave


40

2) Earned Leave

3) Sick Leave

4) Maternity Leave

5) Extra ordinary Leave

Holidays

Holidays for the employees of any units the company shall be the same asdetermined under the

standing order of the workman. There will be in addition to weekly holiday as admissible under

the factories act/ plantation labour act. Holiday for the officier at the registered office shall be the

same holidays declared by the state government as holiday except second Saturday. In addition

to that every alternative Saturday shall also holiday for registered office.

Travelling Allowances

It is an allowance granted to cover the expense incurred in performing journey in the interest of

the company. No TA will payable for journey with the head quarters on which 8km from the

place of the duty.

Kinds of Travelling Allowances

T.A by journey by rail

All officers are entitled to 1st class railways fair and employ 2

nd class once in a year.

Journey by road

All officers will be allowed mileage at rates as followed by government from time to time for

journey in car. For bus fare for the journey will be followed.

Journey by air

M.D and head of the department as the head office and superintends may travel by air and will

be given actual plane fair.

Daily Allowance


41

The rules for payment of daily allowance shall be decided by the board from time to time.

Safety Requirement

1) An employee should report to his / her immediate supervisior, at the time of an accident

even it is a minor one.

2) An employee is liable to use equipment and dresses and follow the safety measures taken

by the management.

3) The employees are allowed are allowed to do their duty and use machine which are

allotted to them.

4) Every employees should use the safety equipment allotted by the management. The

equipment is not allowed to take for personal requirement

5) Duties and Responsibilities Of HRD (Senior Manager)

1) Personal manager shall be responsible for the recruit and appointment of workers, staff

and officers as per procedures laid down by the company.

2) He will arrange for training and manpower development.

3) He is in charge of administration of loan , rules, maintenances of leave account, holidays,

working hours.

4) He will handle all disciplinary matters.

5) He will be the controlling officer for the approval of journey performed by his

subordinate staff.

6) He will visit the estate periodically and notice reports.


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FINANCE DEPARTMENT

Finance management is concerned with decision with refused to the sizhe size of e and

composition of asset and the land and structure of financing. Although the importance of finance

functions depend largely on the firm.

Financial management is an integral part of the over all management of the firm.

Whenever economic affairs here progressed beyond the most elementary conditions production

and exchange, system of accounting have appeared. The accumulation of wealth and the the

growth of the capital, the expansion of the production and trade must create the needs for

financial information and control. Accounting as a technique of financial reporting, is a

reflection of those economic activities. Today accounting as regarded as a language of the

business and investment of administration and commerce.

Finance is in indispensable to facilitate efficient and effective operations of

business enterprise. In this content effective finance management holder key to success in

today‟s highly competitive modern world.

Financial managers are assigned with fine roles.

Planning of funds

Raising of funds

Allocation of earnings

Controls of funds

Finance department commits of chief manager, junior manager and office assistant. The finance

department maintains all the accounts of the various department maintains all the accounts of the

various departments in an organization. It is the duty of the finance department to receive money

and make payments on behalf of the company. It also has to prepare the Balance sheet and profit

& loss account of the company. It also prepares the annual budget according to which the

expenses of the company are monitored. The finance department is a vital part in an

organization, as without finance the day-to-day activities of the company will not function in a

smooth and rapid way. It is the core of the organization.


43

The cash section and account section also forms part of the finance department. The recording of

day-to-day transactions, routine functions like sales tax, payments and receipts of cash

chequeetc, comes under the preview of accounts section. The accounts section also undertakes

the employee payroll function. The cash section deals with the disbursement of cash.

In Oil Palm India Ltd, the financial and accounting activities are controlled by the senior

manager (finance and accounts) station by the head office Kottayam. The objective of accounting

is to provide information to its various users, via the management and commerce, prospective

investors, creditors and other by identify relevant data measuring each transaction in terms of

money and recording the transactions. Finally this data are classified, summarized, interpreted

and the result is communicated to interested parties in the form of reports.

Functions of Financial Department

Financial forecasting and planning

Acquisition of funds

Investment of funds

Maintaining proper liquidity

Assigning the chief account officers and others

Accounting of all transactions, cash at bank, sales etc

Checking of wages and salaries

Regular payments of statutory dues like provident fund, sales tax etc.

Duties of Department

Overall financial control

Monitory decision making in consultation with managing director.

Finalization of accounts

Budget preparation

Control over all matters relating finance in the organization

Accounting Policy


44

Oil Palm India Ltd has generally mercantile system of accounting. All items of income and

expenditure are accounted for us and when occurred and all figures are stated at their historical

cost. Capital work in progress is started at in current during prior to commissioning including

part payment to contractors.

Provision for gratuity is made on the assumption that all the eligible employees of the company

retain as on the balance sheet date. Fixed assets are started at their original cost less depreciation.

The company has been consistency in following written down value method of charging

depreciation. Other accounting practices are constituent with the generally accepted accounting

practices observed in plantation industry.

Significant Accounting Policies

1) Basic of preparation of Financial Statements.

2) Use of estimate

3) Fixed assets

4) Depreciation

5) Impairment of assets

6) Development of property

7) Investments

8) Current assets

9) Sales

10) Employees Benefits

11) Borrowing costs

12) Treatment of expenditure during construction

13) Deferred Tax

14) Provisions, contigent liabilities and contingent assets

Auditing

There is an auditing system in the company which consists of two and its every year. They are

as follows:


45

Internal Audit

External Audit

The external audits are a statutory requirement and the auditors are appointed by the controller

and auditor general. This is done to check whether every process in the company compliance to

the rules and regulations. After completing the audit process , the report is sent to the controller

and Audit General for his approval.

Budget

The are three accounting sections at OPIL, namely Yeroor, Chithara, Kulathupuzha. The head

quarters of OPIL has been performing at Kottayam. All the operation relating to accounts are

done by estate managers and he also done the budget preparation based on the crop study and

flower counting. In the budget preparation, the manager will compare the previous year budget

and estimate the expenditures in the coming year.

Duties and Responsibilities

Finance and Accounts department of Oil Palm India Ltd is responsible for all financial and

accounting matters of the company. They maintain and up keep all books of accounts and

corrected reports. They have responsibilities of maintains and preparation of budget.

Arrangement of statutory auditing and internal auditing come under their preview. It is their

responsibility to ensure the expenditure is with budgetary provision.

Records of Transactions

The first step of accounting is the recording of transactions. All transactions may be groped as:

Buying Transaction

Selling Transaction

Payment Transaction

Cash Transaction

Instead of recording all kinds of transaction in one journal, it found to be bank column. The

cash book is provided with bank columns on either side to record payment into and withdraws


46

from the bank account. Just as cash receipts entered on the credit side. Such cash book operates

as a bank of original entry and at the same time provides the ledger account of cash and book

transactions.

Various source documents like those that invoice receipts and vouchers are used in this

company. These documents provide written evidence of a transaction has taken place. The

correctness of recorded transaction can be verified at the later state by referring to the concerned

source documents. The verifiable objective for recording the transaction to books of accounts.

All plants have independent account and all are reconciled to head office.

Finalization of Account in OPIL

Final account or financial statement of a business consists of trading and profit and loss account

and balance sheet. While trading and profit and loss account is prepared to arrive the net profit or

loss for a certain period, the balance sheet is prepared is to be show the financial position of

business usually on the last day of accounting period. The trading and profit and loss account is

in the nature of an account where as balance sheet is in nature of a statement. The accounting

period of Oil Palm India Ltd is from 1st April to 31

st March. The finalization process starts from

31st March onwards. Finalization of account starts with the closing in hand and each with

preparation of annual report.

Departmental Structure

Ministerial Staff

Manager

(Accounts)

Senior Manager

(Finance)

Managing Director


47

Commerce Department

Structure of commerce Department

Advertisement Strategies

The major product of the company is crude oil and the company is making a bulk selling to the

customers through inviting tender and purchasing of the palm nuts by giving quotation. Tender is

invited by giving advertisement in newspapers, company notice board etc. Most of the customers

are previously known to the company like Paris on Foods Private Ltd, SSD oil mills, Ruchi Soya

Foods, Godrej Foods, HLL.

Tender and Quotation

Notices regarding tenders are advertised in newspaper, company notice board etc for attracting

prospective sellers of palm to quote their rates for supplying goods specified in the notice. When

a tender is accepted the successful tenders has to sign a contract to do what he has promised.

For the purchase of Fresh Fruit bunches (FFB) from private farm holders the quotation by letter

of enquiry is given. The supplies are asked to quote their rules and terns of payment for the

goods the company is willing to buy for them. In sending quotation itself the method of

transport, place and time of delivery, packing and forwarding changes, charges on account of

sales tax, freight and insurance are mentioned. The quotation given should be at lowest prices are

Draftsman

First Assistant

Secretary

Senior Manager


48

possible. Hence, the company has a benefit in inviting tender as all of their customers are

previously known to them and they have good business dealing with them for the last few years.

Pricing

Pricing of crude palm oil is always based on the market condition prevailing that pricing is

fluctuating according to the supply and demand condition. The company‟s high demand for

crude palm oil than what they produced and supplied, mainly because of lack of cultivation land

for palm. But now a day‟s more substitute oil use importing from aboard because of high

demand for oil and low tariff rates.

Distribution Channel

The company is not entered in oil refining. So that there is always a bulk purchase of crude oil

from the company to other oil refining companies. There are no intermediaries between the

producers and buyers.

Promotion Scheme being implemented

Oil Palm seed garden project is being developed for the production of hybrid variety of oil palm

seeds. From seed center about 5 Lakhs hybrid variety of oil palm seeds are producing annually

to cater the needs of farmers in Kerala and also central government.

Action has already taken to increase the production of spouts to 6 Lakhs from the current

financial year onwards.


49

PRODUCTION DEPARTMENT

PRODUCTION

Production Department is the process or procedure of transforming a set of input like men,

machine, materials, information, energy etc into a specific set of outputs like product and service

in proper and service in proper quality and quantity to achieve the objective of enterprises. Thus

production is characterized by tangible outputs, outputs that customers consume.

Production function is an important function of Oil India ltd. Most of the other activities in the

enterprise revolve around this function. Therefore it is essential that production function is

managed properly so that it may contribute effectively to the objectives of the enterprise. The

main aim of the desired goods and services are effectively and efficiently.

The main objectives of production management in the company are as follows:

A) Primary Objectives

Good quality

Optimum quantity

Appropriate cost

Timing

B) Secondary Objectives

Men

Machine

Material

Services

Technique

Production capacity of the plant

The plant has the capacity to process up to 20 tons of FFB/hr. The production of oil varies

according to the seasons, as oil palm is a seasonal crop. The period from February to July is peak

season. Then they process up to season i.e. from August to January, the production will be much

less may be 100 ton/month.


50

DEPARTMENTAL CHART

The Engineering Department handles the maintenance activities of the organization. Senior

Manager is head of the department and he is assisted by a manager, a deputy manager and three

assistant managers. There is several production staff for each estate and factory to make the

working of the company smooth.

Senior

Manager

Assistant

Manager(Q.C)

Factory

Manager

Assistant

Manager

(Mechanical)

Maintenance

Fitters Welders Fabricators

Assistant

Manager

(Electrical)

Electrification

Assistant

Manager

(Civil)

Drafted

Stock

&

Dispatch


51

The production and processing of raw material which are mainly includes in production

department of Oil Palm India Ltd. Production of raw materials takes place in three estates

namely Chithara, Yeroor and Kulathupuzha. Processing of raw material takes place in Yeroor

mill. In OPIL the raw material is Fresh Fruit Bunch or FFB or Palm Fruit. They produced the

FFB from their own estates.

The workers in the estate are mainly known as cutters and carriers. All cutters are male workers

and the same time all carriers are female workers. Cutters have the responsibility to harvest the

fresh fruit bunch and female carriers are collecting the FFB to the destination. These FFB‟s are

transported to the Yeroor mill foe the processing. The fruits are harvesting at the ripen stage

and one of the features of this stage is that the fruits become radish is colour. Thr Palm tree is

grown at wet kinds. The palm tree cultivation is based on rain feed cultivation.

The company had established a modern processing mill to process 20 MT FFb/ hr. A captive

power station is also set up for the generation of electricity. The fibre of palm fruits is used as

fuel for generation of stream to the turbine generator.

PRODUCTION PROCESS

Fresh Fruit Bunches (FFB) harvested from Oil Palm Plantations is highly perishable and require

processing within 24 hours. Delay in this adversely affects the quantity and quality of palm oil.

The process consists of extraction of Palm Kernel Oil(PKO) from the Kernel.

In brief the palm oil milling unit operations are as below:

FFB Reception

Several modern mills are equipped with the following in the reception area of the mill:

Load cell pit less weigh bridge (Computerized)

Larger loading ramp with hoppers of 16 meter tones capacity per day.

5,7,10 meter tones FFB cage with bogie and wheel span of 800mm gauge.

Cage transfer carriage location at both ends of the railway system.

Straight line system with Cage transfer carriage to facilitate easier operation of the 2-door

sterilizer and shunting of the cages can be handled with the capstan and bollard.


52

Sterilization

On arrival at the mill the fruit is sterilized. One of the effects of this is to inactive the fruit

enzyme. Once this enzyme has been inactivated the rise of the

FFA is virtually stopped. The sterilizer process is done 1.5,2.5,3.5,5,7 and today 10 tons capacity

FFB cages which are pushed into long cylindrical steel vessel with special doors and subjected

to stream at approximately 3 bar for about one hour. The objective after harvesting is to sterilize

the fruit as quickly as possible with the minimum of handling and damage. In addition to

arresting the development of FFA contact, the sterilizing of fruit also facilities:

The purification of palm oil by coagulating and mucilaginous matter and thus

preventing the formulation of emulsion during verification of the crude oil.

The extraction of the crude palm oil by freezing the fruits from the bunch stalks

and by breaking the oil cells the mesocarp.

Sterilization is a simple process but it is essential, for the proper operation of the

mill so that it is done correctly. This operation is the largest user of steam in the

mill.

Stripping

After sterilization the sterilized fruit in cages are their winched out of the sterilizer vessel by the

arrangement of Bellard and Winch and their placed in the tippler machine for emptying the

contents of cage onto a scrap type- conveyor. This is then transported to the thresher machine for

stripping of the friutlets from bunch. Such conveyors and bucket elevators then transfer the fruit

to the pressing or extraction station.

Oil Extraction

The efficient extraction of crude oil from Tenera fruit has prescribed problems but these have

been overcome by the development of continuous screw press which is new used in all modern

factories.


53

The fruit from the stripper passes to digesters, which complete the breaking of the oil cells

with moving arms. Digesters have a capacity of above 3 cubic meters. The fruit mash then passes

to the screw presses which press the crude oil out through holes in the side of the press cake. The

pres cake which9 is discharged from yhe end of the press, contains the fibre and the nuts.

The three products separated in this section are :

a) The crude oil which consists of water, dirt and palm oil. This is passed to the purification

section.

b) Nuts : 14% of the FFB is separated by the depericarper and kernel plant for the recovery

of the kernals.

c) Fibre : approximately 15% of the FFB weight with moisture content of 37 %. The

residual oil content should be between 6% and 8% of oil to dry filers.

The filers should also retain as far as possible the phosphatides and other non glycosides

impurities. There fibre is conveyed to the extraction section is important. Unsatisfactory

practices such as excessive drainage of the crude oil before the extraction press leads not

only to purification problems and lasses but also to the higher absorption of iron by the

palm oil.

The importance of reducing the absorption of heavy metal, copper and iron is indicated by the

tobox value. For the production of superior quality palm oil stainless steel moving the wearing

parts should be used for extraction units.

Kernel Recoveries

The conditioning of the nuts starts in the sterilizer and the separation starts in the screw process.

After the screw the nuts and the fiber traverse a heated breaker conveyor which further separates

them and remove moisture from the fiber . The fiber and nuts then passes into a pneumatic

separating column called the “winnowing column‟‟ fitted wit IC damper in operation , depending

on the number of presses in operation . The fiber is blown into a cyclone close to the boiler and

the nuts which removes any attached dirt or fiber and tramps irons.


54

The nuts are conditioned in nut silos before being cracked centrifugal nutcrackers and in present

day ripple mills. After cracking , the cracked mixture is separated in the double winnowing

separating column for dry separating system or separated in hydro cyclones or clay baths.

These processes are wet. A modern clay bath separator is more efficient than a hydro cyclone

separator when processing more than 15% dura material in the cracked mixture. A supply of

suitable clay at the of approximately 450 kg to 100 tons of FFB is necessary for the clay

separator system. Bath systems depend upon the density of the shell being greater than the

density of the shell being greater than the denist of the kernals. The higher yield of palm kernel

compensates the addition cost of clay or kaolin required for the hydro-clay bath separate process.

The shell and kernels are washed and the kernels are passed to a kernel dryer to normalize the

moisture content of 7 % so as to minimize the development of FFA during storage and shipment.

It is also advantage to sterilizer the kernels before shipment of storage with steam at atmospheric

pressure. Kernel plants designed for Dura derived nuts are not suitable for the processing of

Tenera derived nuts. There have been a number of experimental designs, which have proved

failure. Caution and a wide experience are required in selection the proper equipment and design

for kernel recovery plant.

PlantOil Purification

The modern purification or oil clarification station is designed to recover and purify the the crude

oil as quickly as possible with the minimum heating and exposure to air. This is to minimize the

damage by the exposure of crude oil to air at high temperature. The major contribution to poor

quality oil is oxidation.

Oxidation measured by the totox value starts whether oil is above 60 degree

Celsius and exposed to air during processing, storage and shipment.

Crude oil does vary in compensation and therefore water dilution is a means of

stabilization to provide an accurate consistency of the CPO mixture before the classification

process. Therefore the selection and installation of the automatic dilution control is extremely

important.


55

Steam and Power Generator

Utilization of exiting of existing energy resources is indispensable not only for large industrial

process but also for small production plans, particularly for oil palm mills where the balance

between heat and power are required for the production process which is the pre-condition for a

combined “heat and power scheme” or commonly referred to as “co-generation system “ solid

waste fuel in the form of fuel in the form of filter and shells, which are by products of the

proceed are utilized as fuel for their bailer. This steam generated is used for the factory purpose.

Steam is required at an appropriate rate of 500 kg/hr/ton of FFB. The water for

steam production is obtained by building two dams across the nearby river. This water is

thoroughly purified in a dematerializing plant passing through two stages known as “Stroke

Acid” containing strong base which removes the ions present in the water. After this the water is

adjusted to a PH value of 8.5 taking care to prevent scale formulations along the internal tubes

and walls of the boiler and this not to damage them.

Steam is generated from the boiler at a pressure of 22kg/cm2 and at a temperature range of 235 -

265 degree Celsius . this pressure and temperature is higher than that required for the process.

First this is expanded in steam turbines. Sterilization of FFB and heating system in the process.

The energy released during the expansion of the steam is converted by the turbines into

mechanical power to drive an alternator.

Effluent Control

The total effluent is effluent is approximately 0.8 tones /tones of FFB, which is made up of 0.15

tones sterilizer content, 0.45 tones from the clarifier station, 0.08 tones from the Kernel plant and

0.12 tones from the process cleaning. The total liquid effluent will include the wash water . The

effluent is not toxic; but it has a Biochemical Oxygen Demand (BOD) of above 25,000 which

makes it objectionable to dish life when introduced in relatively large quantities is water ways

acid rivers. The effluent is treated by a process, which required an area of 4 to 10 hectors. This

includes 65-75 days retention time in eight ponds after which the water is used for irrigation

purposes in the estate of the company.


56

Productivity & Capacity Utilization

The plant has a capacity to process up to 20 tons of FFB/Hr. However; the production of oil

varies according to the seasons, as oil palm is a seasonal crop. The period from February to July

is a peak season. Then they process up to 1173FFB/ week ton/day of oil \. In the lean season, ie

from August to January the production will be much less, may be 100 ton/month.

Warehouse

The company has got a warehouse for temporarily for producing crude palm oil before

companies winning the bid for it will collect it here will not more than 500 tons of oil in the

warehouse at a time as this will be periodically removed.

Distribution and Inventory Management

The company is not entered in oil refining so that there is always a bulk purchase of crude oil

from the company to other refining companies. There is no intermediary between the producer

and buyer.

Project Department

Project department is concerned with the development of new projects and research for it the

expansion of the company. It takes necessary step to formulate new plans for the fulfillment of

its vision is to expand the company‟s horizons. The verification of the viability of the project

and the execution of the same is maintained and controlled by the Senior Manager project.

Departmental Structure

The department has one senior manager and the manager of OPB. Assistant manager (estates and

assistant manager (OPDP) come under him.


57

Kernel oil extraction unit 1

It has been proposed to set up a kernel oil extraction plant with 1 ton/hr capacity with an

investment of Rs 193 Lakhs to produce kernel oil by processing the kernel obtained from palm

fruits. Government sanction for the project is awaited. It is expected that the project can be

completed during 2007-08.

Oil palm development programme

The company is implementing oil palm development programme, centrally sponsored scheme to

promote cultivation among small for district schemes are being implemented scheme to promote

cultivation among 4 small district schemes are being implemented with the following targets.

Senior

Manager

Manager(OPB)

Assistant

Manager

(Estates)

Ministerial

Staff

Assistant

Manager

(OPDP)

Field Staff


58

Population of oil palm cultivation among shall and marginal farmers with a target of

1000Ha.

Development of oil palm cultivation in 200 Ha in kariland as demonstration plot. Three

different field have been identified for the scheme in two districts of Kottayam and

Allapuzha,84.63 Ha has been development under the scheme(In

needuskunnapadasekharam) in kottayam district participating 137 farmers.

Commencement of OPDP scheme in 200Ha in Malabar areas, especially in Kozhikode,

Malappuram and Kannur district .

Seed garden at Thodupuzha for production of hybrid seeds for promoting oil palm

cultivation India.

Oil programme

A special hybrid variety of seeding called “Tenera‟‟ required for the cultivation

will be made available to the farmers at a subsidiary rate of 75%..

The technical advice required to find the suitable land and planting the seeding

will be provided.

For the first 4 years, the farmers will be given an amount not exceeding 50% of

the cost of cultivation as subsidy per year as follow:

Year RS

1 4600

2 3300

3 3500

4 4100

Total 15500

The maximum subsidy available to a person should not exceed Rs 75000 ie

subsidy will be available for land up to six hectares only.

The company will help to arrange the rest 50% amount required for cultivation as

loans from financial institutions.


59

Expansion Plans

A proposal suggesting the setting up of a unit extracting the palm kernel oil at the factory at

Yeroor is submitted to the government. The work cam be completed within 6 months, once the

approval is obtained.

The computer utilization of the organization is right now just in the developing stage. The total

number of the systems is 14. Out of which 9 systems in Head Office, 2 in estate, and 3 in the

factory. The computers in the head office are inter connected through a LAN network. The

software used for inter connectively is the Novell Netware. The operating systems used are

Windows 95 and Windows 2000. The administrative screen is Dos based. Users are given access

to the system using a username and password, which are nominated by the computer operator.

Even though the computers within the head office are inter connected, there is no connection

between the head office, the factory and the estates. All the administrative tasks and decision

making are one at the head office. Files are manually brought to head office from estate and the

factory which is then entered in the head office. Computers are used only for correspondence.

Departmental chart

Draftsman

First Assistant

Secretary

Senior Manager


60

Sales And Marketing Department

The main product of Oil Palm India Ltd is crude palm oil. So this crude form of palm oil is sold

to palm oil refinery companies. The sales process is done through the process of auction. The

product is sold to the party who had the highest bid. The final decision is based on bid price.

Marketing management is the art and science of choosing target markets and getting keeping

and growing customers through creating delivery and communicating superior customer value.

These are no marketing activities going on at OPIL but only sales. The sales are done through

process of bidding.

Sales procedure at OPIL

The sales process is conducted in secured steps:-

a) The tenders are invited through advertisements in national news papers mostly in

English.

b) The party quoting the highest price is given the sales.

Invoice

Delivery Adivce

Consignment Note

Confirmation Of Tender

Advance Received

Highest Rate Ground

Tender Invited


61

c) Advance is received in advance from bidders.

d) After this a confirmation of tender is sent to the property.

e) A consignment notice is sent to the buyer which acknowledges and sends back to the

organization.

f) A delivery devise is issued after this.

g) After this an invoice is generated to be forwarded to the finance department secured.

h) Tenders are sanctioned by the managing director in the tender register only after that the

sale processes is completed.

The terms and conditions against sales

I. The sale is ex-factory and the price is to be quoted for delivery to the items at the

factory.

II. The price shall be quoted for unit of one metric tone and shall be firm and shall

not be allowed to be reduced on any account.

III. All taxes, duties, cesses, or any other statutory levies applicable from time to time

shall be extra payable by the bidders.

IV. The quotation shall be accompanied by a closed demand draft for the following

amount indicated against each item favoring Oil Palm India Ltd, payable at

Kottayam as earnest money deposit.

V. If any breach of breach of terms and conditions/ failure to honour the conditions /

failure to honour the contractor if any default is committed by the bidders, the

EMD shall be liable to be forteited and the bidder shall not be entitled to raise any

claim for the same.

VI. The period of validity of quotations for acceptance shall be 7days from the date of

opening.

VII. The successful bidders shall b e issued asale letter by the company specifying the

quantity sold and the firm price applicable for the period of delivery.

VIII. The full price of the material with other levies shall be paid in advances by the

success full bidder by demand draft immediately on information from the

company, after which the consignment not is sent


62

IX. The delivery advice is sent.

ITEM EMD

Crude palm oil Rs.20,000/-

Palm kernel

Rs. 15,000/-

Delivery Advice:

It contains all the information about the item, quantity and price at the item sold. It will also

specify who and how will arrange the tankers, barrels etc which are necessary for the

transportation.

Three samples of the delivery note should be taken

1st Sample- With the driver of the vehicle.

2nd

Sample- Send for testing of the sample before taking it from the factory.

3rd

Sample – Retained at the factory.

Duties and Responsibilities of Senior Manager

Responsible for attending to various duties vested in him as company

secretary under the company act 1956 and rules there under.

Responsible for sales for the company product/ materials unserviceable

items etc.

Responsible for the purchase of natural material expect engineering stores/

office stationary after observing formalities.


63

ESTATES

The department is headed by a senior manager (estates) who is assisted by

two managers, three assistant managersa (estates), two assistant manager (finance and accounts),

two labour welfare officers, ministerial staff and field staff and field staff or workers.The

company has got a total planted area of 3646 hectare of plantation spread over in three estates

viz. Yeroor, Chithara and Kulathupuzha in Kollam distict. The raw materials, Fresh Fruit

Bunches (FFB), for the production of Palm Oil are cultivated in these three estates.

Senior

Manager

(Estates)

Manager

Assistant

Manager

(Estates)

Field

Assistant

Superwiser

Watcher

,Ayah

Workers

Welfare

Officers

Assistant

Manager

(Accounts)

Mi nisterial

Staff

Manager

Assistant

Estates

Field

Assistant

Superwiser

Watcher,

Ayah

Workers

Welfare

Officers Assistant

(Accounts)

Ministerial

Staff

Assistant

Estates

Field

Assistant

Superwiser

Watcher,

Ayah

Workers


64

MEDICAL DEPARTMENT

Medical department takes care of the health and hygiene of the workers of the organization.

Senior medical officer is the department and he is assisted by a lady medical officer and

hospital staff.

Functions

Medical department priding medical care to employees and their dependents.

Look after the work accident cases and other patients.

This department have the ambulance facility. It necessary the accident or injured

workers may be send to other hosiptals for better medical treatment .

Reimbursement of medical expense bill to the employees.

Conducting medical camps etc.

Senior

Medical

Officer

Lady

Medical

Officer

Pharmacist Nurse

Hospital Attendant


65

Maintenance Department

Maintenance department plant maintain department is responsible for repair, maintenance,

installation of machines, tools and equipments in manufacturing operations. The department is

responsible to eliminate all causes of failure and ensure full useful life in coordination with daily

maintenance completed by operating personnel. Schedules repair, maintenance and installation to

ensure continous product ion operations. Creates and mages the maintenance and stores budgets,

inspects operating machines and equipment for conformance with operational standards.

Reviews production, quality control, and maintenance reports and statistics to plan and modify

maintenance activities.

Nature of maintenance

1) Routine Maintenance

2) Preventive Maintenance

3) Annual shut down Maintenance

4) Statutory Maintenance

5) Break down Maintenance

Maintenance department is highly effective and it is highlighted in the annual production

figures. Maintenance is done on weakly daily and monthly basis . Greasing, oil checking

etc have to be done on all days and can be classified into routine maintenance.

Preventive maintenance like oil replacing has to be done according to the prescribed

period in order to maintain the personal as well as plant safety. Statutory maintenance is

done as defined by the factory act. The plant will be shut down for a period of one month

for the annual shutdown maintenance usually this is done during the off season. Break

down maintenance are done whenever necessary.


66

SWOT ANALYSIS


67

SWOT ANALYSIS

STRENGTH

Their product has very good demand Dedicated employees

Has got financial reserves

Oil Palm is a highly productive crop

Modern production technology

Well equipped factory

Quality control measure

Health value of the product

Good infrastructure

Sophisticated production process emphasizing greatly on quality

Leading producer of palm oil

Good relationship with trade unions

New production methods

Safety measures in factory

WEAKNESS

Insufficiency of land for cultivation Deficiency of online business Lack of adequate infrastructure facilities like building, road etc


68

Shortage of sufficient man power No worker’s participation in managerial decision making Fluctuations in oil price Delay in computerizing the company As there are fewer chances of promotions, employee motivation is very No standard for quality, like ISO, is implemented Oil Palm is a seasonal product, thus leading to low plant utilization from August January Deficiency of online business

OPPORTUNITIES

Healthy market competition Has no direct competitors in Kerala

Monopoly in production

High demand for palm oil

Responsibility towards society

No environmental pollution

Oil Palm Development Programme (OPDP)

Government interventions to control palm oil imports

Consumers like Wipro, HLL etc

National Research centre and seed production unit producing high yield variety

World wide acceptance of palm oil as a harm less and notorious vegetable oil

THREAT

Price of fluctuation

Pressure by Malaysia and Indonesia to lift the import barriers

Globalization

No marketing strategies

Government policy

World Trade Organization Agreement

Low tariff rate for import of substitute palm oil


69

FINDINGS & SUGGESTIONS


70

FINDINGS: General findings

From the analysis of the data collected from the company it is understood that :

The company makes profit for the last 6 years.

The financial position of the company is good.

OPIL maintain good employee relationship

OPIL has an efficient management system

The company promotes team activities.

The co-ordination between various department is excellent

Employees of OPIL are involving in various spheres including decision

Training given to officers in Malaysia and Nigeria.

Adequate transportation facility is not there in the company

Specific findings:

Insufficiency of land for cultivation

Deficiency of online business

Lack of adequate infrastructure facilities like building, road etc

Shortage of sufficient man power

No worker’s participation in managerial decision making

Fluctuations in oil price

R&D

Delay in computerizing the company

As there are fewer chances of promotions, employee motivation is very

No standard for quality, like ISO, is implemented


71

Oil Palm is a seasonal product, thus leading to low plant utilization from August January

Deficiency of online business

SUGGESTIONS

Welfare measures should be improved to motivate the workers.

Adequate transportation facility should be provided.

The company can be complete revamp its existing advertising and other product

Promotional strategies so that they become readily aggressive.

More marketing strategies to be established.

Effective use of management information can reduce complex procedure.

International standards should be used to maintain the quality of the product

The control measures using old techniques to know about purity of fruits and also crude

oil.

Proper guidance should be given to the workers to improve there efficiency.

The company has to make awareness of the schemes and plans to the employees

properly before its implementation.

Proper training and counseling should be given to the employees who opted for VRS.

The schemes should be implemented in its right spirit and gracefully.

OPIL should have notice the chances in foreign market and take steps accordingly.


72

CONCLUSION

The study is to acquire the pratical aspects of Business and commerce. And also to

understand how an organization maintains overall balances, the day today activities are

observed and it helps the all purposes.

Financial position of the company is good. Employees are enthusiastic and hardworking

about their work and efficient management. The present scenario of Kerala industrial

situation is obtained from the study.

The study reveals the application management principles in OPIL and the experience at OIL

PALM provides a chance to analyse the difference of management theory and practice..


73

Bibliography

Textual References

R. H. V. Corley and C. H. Lee, Euphytica Journal, Volume 60, Number 3, Pages 179-184, April 1992,

doi:10.1007/BF00039396

Kotler, Philip; Gary Armstrong, Veronica Wong, John Saunders (2010). "Marketing defined". Principles of

marketing (5th ed.). p. 7.

http://books.google.com/books?id=6T2R0_ESU5AC&lpg=PP1&pg=PA7#v=onepage&q=&f=true. Retrieved

2009-10-23.

Paul H. Selden (1997). Sales Process Engineering: A Personal Workshop. Milwaukee, WI. p. 23.

Characteristics of red palm oil, a carotene- and vitamin E–rich refined oil for food uses B. Nagendran, U. R.

Unnithan, Y. M. Choo, and Kalyana Sundram, Food and Nutrition Bulletin, vol. 21, no. 2, 2000, pg 77-82,

The United Nations University

Web Resources

http://www.oilpalmindia.com/products.php

http://www.oilpalmindia.com/estate.php

http://www.oilpalmindia.com/opdp.php

http://www.oilpalmindia.com/seed_garden.php

http://www.oilpalmindia.com/right_to_information.php

http://en.wikipedia.org/wiki/Digital_object_identifier

http://dx.doi.org/10.1007%2FBF00039396

http://en.wikipedia.org/wiki/Philip_Kotler

http://en.wikipedia.org/w/index.php?title=Gary_Armstrong_(Marketing_researcher)&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Veronica_Wong&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=John_Saunders_(Marketing_researcher)&action=edit&redlink=1

http://books.google.com/books?id=6T2R0_ESU5AC&lpg=PP1&pg=PA7#v=onepage&q=&f=true

http://www.oilpalmindia.com/products.php

http://www.oilpalmindia.com/estate.php

http://www.oilpalmindia.com/opdp.php

http://www.oilpalmindia.com/seed_garden.php

http://www.oilpalmindia.com/right_to_information.php


74

Annexures –I

Profit & loss account of Oil Palm India Ltd for the year ended 31st

March 2011

Description Current year

31st March 2011

Rs. Ps.

Previous year

31st March 2010

Rs. Ps.

INCOME

Sales

Increase/decrease in stock

Other income

Prior period income

Total income

Expenditure

Cultivation and upkeep

Purchase of raw material

Processing

Electricity

Power & fuel

Employee cost

Other expenses

Prior period expenses

Total expenditure

Profit before interest

&depreciation

Depreciation

Current Assets written off

Profit before tax

16

17

18

18A

19

19A

20

21

21A

22

23

23A

25

25A

310808332.00

2859782.65

35249644.03

3911018.76

345423998.36

62505761.34

33406949.00

25311403.12

1632995.00

3657160.49

93316161.85

28630884.43

48630.00

248509945.23

104318832.21

13997844.86

604949.25

89716038.10

222353756.06

7781165.95

34267797.99

196203.00

264598923.00

50691976.64

21081909.00

20294414.40

1606545.00

3196309.76

61969553.91

26034541.05

379726.00

185254975.73

79343947.27

11816359.84

595385.02

66932202.41


75

Current tax

Deferred tax

Profit after tax

Transfer to development reserve

Provision for dividend

Provision for tax on dividend

Transfer to general reserve

Surplus carried to balance sheet

Total

Significant Accounting policies

Notes Forming Part of Accounts

E.P.S. Basic Rs.

Diluted Rs.

26

26A

27

28

29

29A

30

31

35700000.00

-5804467.00

59820505.10

11010000.00

23575200.00

3824487.00

5000000.00

16410818.10

59820505.10

507.49

507.49

24218971.00

166784.00

42546447.41

7210100.00

17681400.00

2936660.00

166784.00

11718287.41

42546447.41

360.94

360.94

Balance sheet of Oil Palm India Ltd as at 31st March 2011

Description Current year

31sMarch 2011

Rs. Ps.

Previous year

31stMarch 2010

Rs. Ps.

Sources of funds

Share holders fund

Share capital

Reserved and surplus

Total

Application of funds

Fixedassets

117876000.00

519375480.40

637251480.40

117876000.00

486954662.30

604830662.30


76

Grossblock:

Less: Depreciation:

Net block

Development of property

Capital work-in-progress

Investments

Deferred tax asset (NET)

Current assets, loans & advances

Inventories

Sundry debtors

Cash & bank balance

Loans & Advances

Total

Less:current liabilities & provisions

Current liabilities

Provisions

Total

Net current assets

TOTAL

Significant Accounting Policies

Notes Forming Parts of Accounts

335412532.66

226341346.89

109071185.77

75761886.31

78920614.83

10000000.00

31789447.00

37014323.40

149817.00

419570121.22

252029123.06

708763384.68

95990346.19

281064692.00

377055038.19

331708346.49

637251480.40

115803115.59

69102157.07

2477439.03

10000000.00

25984980.00

32112022.97

634515.00

416702364.36

200599603.52

650048505.85

42271100.24

226314435.00

268585535.24

381462970.61

604830662.30

Documents

Organisational study on Oil Palm India LImited