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NAME OF THE ORGANISATION WITH ADDRESS: Silver Cloud Estates Private Limited 1/22A, Silver Cloud Tea Factory Private Limited, Gudalur, The Nilgiris. Phone: 04262-261255, 251210. Name of the Directors :- Mr.E.J.Coelho Mr.A.J.Coelho COMPANY PROFILE : Silver Cloud Tea Estates – with the registered name as Silver Cloud Estates Private Limited, is located at the foot of the Western Ghauts of the beautiful Nilgiris mountain range, based in Gudalur town. This plantation was formed in 1949 by Messrs Gregory and Martha Coelho, and it is registered under company’s act 1956.It is one of the south Indian companies engaged in agricultural products in Nilgiris. It is one of the oldest tea producers which has around 75 years of traditional experience in Tea, Coffee and Pepper

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NAME OF THE ORGANISATION WITH ADDRESS:

Silver Cloud Estates Private Limited

1/22A, Silver Cloud Tea Factory Private Limited,

Gudalur,

The Nilgiris.

Phone: 04262-261255, 251210.

Name of the Directors :-

Mr.E.J.Coelho

Mr.A.J.Coelho

COMPANY PROFILE:

Silver Cloud Tea Estates – with the registered name as Silver Cloud

Estates Private Limited, is located at the foot of the Western Ghauts of the

beautiful Nilgiris mountain range, based in Gudalur town. This plantation

was formed in 1949 by Messrs Gregory and Martha Coelho, and it is

registered under company’s act 1956.It is one of the south Indian companies

engaged in agricultural products in Nilgiris.

It is one of the oldest tea producers which has around 75 years of

traditional experience in Tea, Coffee and Pepper cultivation. Now the

management is concentrating on expansion of its Cardamom cultivation as

well as independent crop under well established shades and also as inter

planting along with Coffee. Cardamom is a shade loving plant. This estate

has around 3000 acres of land of which 700 acres cover with tea and balance

with coffee, pepper, orange and cardamom.

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The capacity of the Silver Cloud Tea Factory is 45,000 kg of Green

Leaf for 10,000 kg. of Made Tea (Marketable) tea per day. The annual

production is around 18,00,000 kg of marketable teas every year from its

own tea leaves and “bought leaf” from the surrounding small tea land

holders.

Silver Cloud Estates have around 300 permanent workers. The fact

that all the vanilla and tea products sold by Silver Cloud, are grown on the

estate, and applies tremendous control over the quality of the products

according to consumer preference. It enable us to guarantee that the

products are natural and produced in an eco-friendly manner, No child labor

is ever used to plant, grow, pollinate, harvest or process any of the products.

This factory is fully automated programming and logical control. The tea

produced is exported to various countries such as USA, UK and European

countries.

BASIC INFORMATION

Company Name: Silver Cloud Estates Private Limited

Business Type: Manufacturer

Product/Service: We are the growers and manufactures of the

following from our own

Plantation: Vanilla beans, vanilla extracts, green tea extracts,

green tea polyphenols, and Black Tea

No. of Total

Employees : 501 - 1000 Workers

Ownership & Capital

Year Established: 1950

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Coelho Family members are the owners of the property.

MISSION

To motivate the employee for the higher performance and to yield

maximum profits

VISION

Maximization of production and profits.

OBJECTIVES OF THE COMPANY

Profit maximization is the main aim of the organization.

Consumer satisfaction is also the main aim of the organization.

Earning goodwill and enhancing public image.

Utilizing modern equipment and techniques properly.

Developing efficiency and productivity among workers.

.

ORGANIZATIONAL CHART:

Factory

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Production consultant

Factory Officer

Assistant Factory Officer

Skilled Worker

Electrical Worker

Supervisors

Workers

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PURCHASE DEPARTMENT

Purchasing refers to a business or organization attempting to acquire

goods or services to accomplish the goals of the enterprise. Purchase

department takes care of purchase of raw materials needed for the

production. Purchasing managers and procurement managers guide the

organization’s acquisition procedures and standards.

The purchasing department normally issue Purchase Orders for

supplies, services, equipment, and raw materials. In these roles they were

able to add value and maximize savings for organization.

Purchasing manager’s success in these roles resulted in new

assignments outside to the traditional purchasing function – logistics,

materials management, distribution, and warehousing in the stores. Further

the Stores department ensures that the materials are rightly sent when

needed.

.

MODE OF PURCHASE

The company makes its payment both on cash and on credit basis. The

company has been regular in its payments as per the contracts and

agreement.

There are regular suppliers who are on contract to supply raw materials such

as Green Leaf, Packing materials – Jute Bags, Tea Packing paper bags,

Pouches of different sizes to contain 100 grams, 250 grams, 500 grams and 1

kg. In addition, firewood is one of the main requirements for tea manufacture

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to produce heat energy. There are regular contractors to supply firewood

and their accounts are settled on weekly/monthly basis.

MODE OF PAYMENT

Cash, Cheques, Demand Drafts, Online Transfers of funds. RTGS (Real Time

Gross Settlement), NEFT (National Electronic Funds Transfer).

Nowadays, the banks provide varieties of transaction facilities which becomes

a main instrument for promotion of business world and quick exchange of

money. In addition, the provision of Working Capital, Short Term Loans, Long

Term Loans, Agricultural Loans etc with bearable interest by the Banks are

another great facility for business promotion.

MODE OF DELIVERY

Road transport. Charges should be met by the company along with handlings

charges of the consignments.

PLACE OF PURCHASE

Coimbatore, Mysore, Conoor, Gudalur, Sivakasi and specific items such as

electronic materials from the producers in Bombay, Culcutta etc.

PRODUCTION DEPARTMENT

PRODUCTION PROCESS

Withering

Shredder

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Rotor vane

CTC 1

CTC 2

CTC 3

CTC 4

Sifting

Fiber extraction

Winnowing

Fermentation

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Withering

It means reducing the moisture contents in the green leaves. It also

means to condition the leaf physically and bio chemically and changes it from

hard stage to soft stage. It is weighed in the factory and spread into troughs.

For removing moisture from leaves hot air is blown into leaves by blower

fans. Leaves are kept in troughs minimum for 12 hours for chemical and

physical withering.

CTC-Crushing, Tearing & Curling

Shredder cuts the tea leaves into smaller particles and they are passed

to the CTC. Thus the cell breaking of the leaves commences here. Four

machines are used for cutting leaves, each machine has 2 rotors running on

opposite direction and has horizontal and vertical groups on them which

crush leaves and make powder. These are called dhools. Rotor is made of

stainless steel and the rollers of rotors are sharpened for every 100 hours of

use. Finally from C.T.C it goes to googli where the ball breaking operation

takes place and the crushed dhools are made even. After this the evenly cut

dhools go to the fermenting machine.

Grading

Clearing&Packing

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CFM-Continuous Fermenting Machine

The dhools is spread into 6’’ thickness layers and driven in the CFM

drive until it gets fermented. Oxygen is blown to get oxidized. Then it is

passed to dryer with 122 to 133 degree Celsius hot air. After the firing, the

dryer mouth fired dhools will have 3% of moisture.

Drying

The tea is passed through the hot air where the moisture is removed.

After drying moisture will be reduced 2 to 3% in the fired dhools.

Sifting

Dried tea is then passed to conveyor then to fiber extractor where

fibers are separated by electric stalk extractor . Then the tea is passed to the

sorters and graded into various grades. In Silver Cloud Tea Factory around

10 grades are produced such as :-

Dust Grade:

SRD Super Red Dust

SFD Super Fine Dust

PD Pekoe dust

RD Red Dust

Leaf grade:

SBP Super Broken Pekoe

BOP BrokenOrangePekoe

BP Broken Pekoe

B.O.P.L Broken Orange Pekoe Large

S.B.O.P Super Broken Orange Pekoe

PF Pekoe Fanning’s

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Winnowing:

This is the process where all the lightest particles are removed out

from the dhools and the heavier parts are used as tea.

Clearing and Packing

Tea is packed in containers of jute bags and in pouches for sale in

retail market. When the consignment is ready, they are removed from the

Factory with the record of Gate Pass. The teas so removed will attract

Central Excsise Cess at -/30 ps. Per kg. which has to be remitted to the

Central Excise authorities every month on the total quantity of tea removed

from the factory.

Loose Teas

They are packed in jute bags weighing 30-40 kg according to capacity

of the container. They are dispatched for auctioning in the auction points

such as Coonoor, Cochin and Coimbatore. The teas sent to the Brokers are

stored in their warehouses. Once the stocks in warehouse are sold, they are

delivered to the buyers.

J. Thomas & Co, Paramount Tea Marketing (S.I) Private Limited and

Forbes Ewarts Figgis Private limited are the brokers. Tea is sold to the higher

bidder and the brokers deposit money of sale proceeds to bank account of

estate deducting sales tax and brokerage. At the end of every month, the

brokers remit the sales tax to the concerned authorities and send a

certificate to this effect for the estate to file the monthly return the local

Commercial Tax department.

Packet Teas

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It is in laminated pouches in 100 gms, 250 gms, 500 gms and 1kg.

They are bagged in jute Zibber bags. They are despatched to the dealers for

marketing. Local dealers after selling the teas periodically deposit the

amount to the bank accounts of the Estate. Outside dealers also transfer the

funds through RTGS. NEFT and also through demand drafts. But nowadays

the remittance by Demand Drafts and Cheques are being limited, since other

easy, quick and cheap methods of transfers are available.

MACHINERY INVOLVED

Withering Troughs - Removing moisture in the Green Leaf and

Induces Hot Air for this purpose.

Shredder - Cell breaking of leaf

Rotorvane - Cut leaves are received and further cell breaking process

is done.

CTC Cutters - Crushing of Withered Leaf

Googi - Ball breakers

CFM – Fermentation (Continuous Fermenting Machine)

Dryer- To dry the dhools discharged from the CFM and for this purpose

Kilburn Driers are used connected to Parucco Heaters which are

supplied from Kolkatta.

LIFE OF MACHINERY

Approximately around 35 years.

MAINTENANCE TYPE

Preventive Maintenance. They are spending 6 to 8 hours per week

for maintenance purpose. Weekly once, oiling greasing, washing is done to

remove all fungus formation in the machines. Factory maintenance is under

the control of a Factory Manager and Factory Officer. Since tea is a directly

consumable product, more hygienic methods have to be followed in all stages

of its process.

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HR DEPARTMENT

STANDING ORDERS

Classification of workers as per standing order of a company.

The workers employed in the Plantations and Factory are governed by the

JOINT STANDING ORDERS FOR ESTATE WORKMEN OF TAMIL NADU

certified by the Certifying Officer for Tamil Nadu under Section 10 (3) and 5

(3) of the Industrial Employment (Standing Orders) Act, 1946 on the 24th

December, 1964 in his Order No.22847/59. The Joint Standing Order is issued

to the Employers by the Planters’ Association of Tamil Nadu, Coimbatore.

The Joint Standing Orders is applied as and when the expected discipline is

violated by the workers. The misconduct of the workers are categorized as

Minor Misconduct and Major Misconduct. The disciplinary action is taken

according to the nature of the misconduct. The following are the procedure

adopted in taking disciplinary action against a worker who committed major

misconduct :-

a) Initially get the complaint in writing from the respective head of the

department.

a) Serve a “Show Cause Notice” to the worker along with the copy of the

complaint asking for explanation within the stipulated.

b) On receipt of the explanation from the worker, if the explanation is not

satisfactory, serve a charge sheet by a giving a date for domestic

inquiry stating the date, time, venue and the name of the Officer who

has been appointed to conduct the domestic inquiry.

c) Record the enquiry proceedings along with the statements of the

respective witnesses.

d) Get the Inquiry Officer’s findings on the inquiry.

e) Serve a Second Show Cause Notice to the delinquent and get his

explanation for the second show cause notice along with the Inquiry

Officer’s findings.

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f) On receipt of the explanation, if it is found unsatisfactory, the

management may impose punishment according to the gravity of the

misconduct.

g) In return the worker has his/her liberty to appeal against the award to

the Labour Officer of the District. The Labour Officer has the

conciliation power and to bring a compromise between the

Management and the Worker. If such compromise is not arrived, the

worker may go to the Labour Court and appeal against the

management’s order.

Categories of Employees

1. Permanent Workers/Staff

2. Probationary Workers/Supervisors/Staff

3. Temporary Worekrs/Supervisors/Staff.

TIME OFFICE FUNCTIONS

Time office is also a part of the department. The incoming and

outgoing timings are observed by the concerned authority.

It is a strict policy of the company not to employ people below the age

of 18 years either in the Plantation or in the Factory.

Labour welfare officer is fully in-charge of the factory management

verifying the daily workings of the employees in the concern. To maintain the

attendance register for the workers.

WORKING HOURS

The company starts its workers time at 8.00 am to 5.00 pm with a

lunch break of one hour (12.00 pm to 1.00 pm).

SELECTION PROCESS

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Application in the common format.

Preliminary interview

Selection test

Employee interview

Feedback

Evaluation

TRAINING AND DEVELOPMENT

Training is the process of increasing the knowledge and skills for doing

a particular job. Training means to instruct technical and mechanical

operations like operations of a machine.

Job – Instruction training:

Job instruction training is a step by step learning. It serves to

improve the motor skills. It has provided in starting period. This training

has given to only fresh candidates and the period of training duration is

three months. This period may extend according to the improvement

stages seen from the probationer. It is applied to know about the

production process because the fresh employees may not have any

knowledge about the Manufacturing methods and stage war process.

Coaching:

In this training, the superior guides and instructs the trainee about

organization achievements. The very object of the training is for

achieving the target. In this training more suggestions are given to the

employees because of more development aspect of the organization is

promulgated and achieving the goal.

RECRUITMENT POLICY

Advertisements - This method is used for jobs like clerical, technical,

managerial.

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Former employees - Retired employees may be interested to work

on a part time or full time basis.

JOB EVALUATION

A technique used to establish the relative worth of jobs in a job hierarchy.

Ranking

Factor comparison

CAREER MANAGEMENT

The process of designing and implementing goals, plans and

strategies to enable organization to satisfy employee needs while allowing

individuals to achieve their career goals.

Assess human resource requirements

Career path for each person

Initiate career development efforts

JOB CHANGE

Changing of jobs are done among workers alone. Supervisors and Staff jobs

are not allowed to change as every individual should expertise in their field to

make their supervisory jobs meaningful and successful.

Promotion:

Vertical promotion.

Employees are promoted from one higher rank to other in the same

department according to their merits and performance..

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Transfer:

If and when required, transfer from one Division to other is made.

WAGES & SALARY ADMINISTRATION

The Payment of Wages is governed by the Payment of Wages Act 1936. The

Government of Tamil Nadu announces the minimum wages payable to

Plantation and Factory Workers according to The Minimum Wages Act 1948.

But the Management coming within the purview of the Nilgiri/Wynaad

Planters Association along with the Trade Unions functioning in the Taluk

jointly arrived at a 18(1) Settlement for payment of the Wages to the

Workers. Those who are covered in this settlement will pay a settled wage

but anything above the Tamil Nadu Government announcement. This

settlement will be renewed after every three years.

There is no deviation in the wage rates of men and women. The Equal

Remuneration Act 1976 is in vogue in this estate.

Present wage is Rs 134/60 per day for the Quarter July to September 2011 as

per the Nilgiri/Wynaad Planters’ Association settlement. This may vary for

every quarter according to the cost of living index arrived by the Planters

Association of Tamil Nadu.

OTHER SALARY BENEFITS:

Bonus

Leave with wages

Sickness benefits

Maternity benefits

Employees’ Provident Fund.

Workmen’s Compensation .

Payment of Gratuity .

LEAVE FACILITIES AVAILABLE

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Casual leave-10 days

Sick leave-30 days

Annual leave-30 days

PERFORMANCE APPRAISAL SYSTEM

.

Field review method

For the executives level the performance is monitored by the Board of

Directors from the corporate office and for non- executives level the

performance is monitored locally by their H O D’s.

GRIEVANCE REDRESSAL PROCEDURE:

Workers report their problems to their supervisor then if the problem is

complicated and require the intervention of the Management Executives,

then it is passed to HOD. Then they are passed to the management. In case

a worker feels it fit to take up the matter through the Government Forum,

then such worker is at liberty to take up the matter with the Labour Officer,

Udhagamandalam for conciliation between the management and worker. If it

is not sorted out, then this may be taken with the Deputy Commissioner of

Labour, Coonoor.

LABOUR WELFARE ACTIVITIES-STATUTORY/NON STATUTORY

Statutory

Employee Provident Fund & Miscellaneous Provisions Act.

Maternity Benefits Act.

Payment of Gratuity Act.

Payment of Wages Act.

The Workmen’s Compensation Act.

Payment of Bonus Act.

Leave with Wages Act.

SOCIAL SECURITY MEASURES

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EMPLOYEES PROVIDENT FUND (E.P.F) – As a statutory obligation

for the welfare of employees 12% of total earnings recovered from

wages/salary of employees and the company’s contribution of an equal

amount i.e. 12% is remitted to the employee’s account every month by the

employer. This becomes the principle savings of the workers, which will help

them at their retiring age.

Furthermore, Employees’ Pension Scheme is in vogue under the

provisions of Employees’ Provident Fund. This scheme was brought in to an

Act on 16th November, 1995 and is known as “THE EMPLOYEES’ PENSION

SCHEME 1995’.

All the workers who have been contributing to the Pension Fund for

more than 10 years after 16th November 1995 and have attained the age of

58 years are eligible to avail the pension fund according to their contributions

made to this fund. Those who opt for pre-mature retirement but of the age

below 50 years, they will be served with a Scheme Certificate by the

Provident Fund Department. As and when they attain the age of above 50

years, they are at liberty to apply for the pension fund and enjoy the benefit

monthly. But any employee who prefer to avail the benefit before attaining

the prescribed age of 58 years for superannuation, will be paid only a

reduced pension as it is premature.

BRANCH OFFICES

Mysore and Calicut depots

Flavors and essence private limited

SISTER CONCERNS

Silver Cloud Tea Estates owned by Barwood plantations private limited

Barwood Estates, Newhope.

Silver Cloud Tea Factory owned by Silver Cloud Estates (P) Ltd.

Silver Cloud Coffee Estates

Chickmoyar coffee estates

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MARKETING DEPARTMENT

MARKET SEGMENTATION

It is subdividing a market into distinct and homogeneous subgroups of

customers where any group conceivably be selected as a target market.

Customer based segmentation:

Geographic location

Psychographic variable

Buyer readiness

Product related segmentation:

Use situations

Benefits

Competition related segmentation:

Loyal status-Hard Core Loyal

PROMOTION POLICY

The products can be made known to the customers. Firms undertake

promotion work such as

Public relations

Advertising through mass media.

Installation of Tea Stalls in main cities when there are functions like

exihitions and serving with complimentary cups of tea..

DOMESTIC AND INTERNATIONAL

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The marketing which includes national boundaries even if it includes

companies from foreign markets. Products and services are developed for

customers in the home market.

TAX PROCEDURE

Collection, remittance, filing, returns to sales tax authorities is the

responsibility of the depot keepers.

REGITERS MAINTAINED

Production register-This book shows the day to day intake of

raw materials, fine products, fuel and power along with day to

day dispatches from the factory as per the instructions received

from sales section.

Green leaf suppliers register - This is another vital book

maintained to record the green leaf received from various

suppliers and own estates. This book is maintained to show the

day to day intake position of green leaf.

MODE OF SALES

Auction Sales

Auction sale is a main media of disposal of teas and three auctions

centers operate in Tamil Nadu and Kerala. Silver Cloud Tea Factory sell their

teas in the Coonoor, Coimbaore and Cochin Auctions, which take place on a

weekly basis. The following are the days of Auctions in the three centers :-

Coonoor - Leaf sales on Thusdays

Dust sales on Fridays

Coimbatore - Friday – Leaf & Dust sales.

Cochin - Thursdays – Leaf & Dust sales.

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Direct sales

Selling at manufacturer’s plant

These products are directly sold to the consumers.

Indirect sales

Wholesaler - Wholesalers sell to all retailers or other merchants but

they do not sell in significant amounts to ultimate consumers.

Retailers - They sell the teas to the ultimate consumer.

CREDIT SALES POLICY

There is no credit sale policy. Since tea is the only source of revenue

earning media, there is no compromise regarding credit sale. However, the

Consignment Sales procedure is in vogue. In this context, a particular

consignment, as per the preference of the dealer who is operating in

Bangalore or Hyderabad will be dispatched under an invoice containing

approximate value. The dealer at the receiving point sells the teas and sends

the sale proceeds through the Bank Accounts. There will be a duration of not

less than one month for a consignment to be converted to money, which is

unavoidable.

SYSTEM DEPARTMENT

SYSTEM SPECIFICATION

The present software package used in this establishment is Tally. ERP 9

supplied by a Company in Thirussur, Kerala. This system caters to all the

accounting procedure of the company.

Until 2009, the company was using a package known as “Soft System”

specifically meant for this establishment by a Software Engineer. Since it

was found the Tally ERP 9 is well known in the global level, we desired the

preference of Tally and it is meeting our requirement in the Accounts field.

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ROLE OF SYSTEM

To make the job easier

To avoid manual work

Of course the introduction of software has brought in a new era in the office

work. The ink dipping wooden pen writing has been given up. Paper/Book

works are minimized

PROBLEMS FACED IN SYSTEM ADMINISTRATION

Efficient system analyst

System maintenance

ROLE OF SYSTEM ANALYST

Checking pay roll giving full details of credits and debits

Staff salary details

EDUCATION AND TRAINING THE SYSTEM USER

Minimum knowledge in computer and related courses

Knowledge of tally is must

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DEPARTMENTWISE EMPLOYEES STRENGTH

There are varieties of cultivations done in Silver Cloud Estates, such as Tea,

Coffee, Pepper and Cardamom. For all these cultivations a mass manpower

is required to maintain the day to day operations, such as plucking of tea

leaves, weeding, chemical spraying, application of manure, spraying micro

nutrients, coffee picking, handling, maintaining of pepper vines, etc.etc.

Tea Estates

There are around 125 permanent workers employed in the Tea Estates in

addition to casual and temporary workers employed as and when required.

Tea is being cultivated in around 750 acres both in Silver Cloud and Barwood

Estates, which are parts of the same Company.

In addition, the Manager has the total control of all the works in the tea

estate and below him the respective Superintendents implement the

company’s working schedule and policies. There are Field Officers and

Assistant Field Officers to carry out the instructions of the higher authorities

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and guide the respective Supervisors who in tern apply the same on the

workers and bring the written formulas into action.

Coffee Estates

The Coffee Estate in this company has a cultivated area around 1,500 acres,

employing around 250 permanent workers and around 150 casual/temporary

workers employed during harvesting seasons. In addition, Silver Cloud has

got into a venture of Cardamom cultivation which is known as the “Queen of

Spices” .

As stated above, the Coffee Estates also controlled and managed by the team

of Managerial staff. All the activities of the Company is only to achieve the

objective target which involves in provision of fair and reasonable living

condition to its employees and attain a marginal profit for all its efforts.

Tea Factory

As we have stated earlier, Silver Cloud Tea Factory is a fully automatically

controlled and computerized factory. In addition the entire factory machinery

are connected to conveyor fed system. As such the required of man power to

the factory is very much less than compared to man power oriented factories

in the district. The day to day requirement of workers will be around 15 per

shift and during cropping season the factory will function to its full swing and

employ three folds of the normally required labour.

The Factory Manger is the ultimate authority of the factory and factory

Superintendent is responsible for the day to day functioning and production.

A Factory Officer, Assistant Factory Officer, Supervisors are employed along

with the workers population and all of them work for the quality production of

“Silver Cloud Tea”.

There are different types of inventory or forms are used in the day to day

function of the office administration –

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Purchase Section

A) The Order form when placing orders with the suppliers.

B) Once the goods are received through a Delivery Note from the Supplier

such

receipts are entered in the Good Received book.

C)On accounting the goods so received, they will be distributed to the

Division

on their respective indents. The goods indent forms are used for this

purpose.

D)On supplying the goods to the respective divisions, such good are delivered

to

the consignee, by a Delivery Note which is carry the acceptance and

signature

of the recipients.

It is the utmost responsibility of the staff employed in the Purchase Section to

ensure the quality of the materials of any item supplied to the estate by the

various suppliers. In the meanwhile the price factor also be born in mind for

which quotations are called for from various suppliers before placing the final

order to any producer or company.

Level of Stocks

Silver Cloud always maintain a minimum level of stock of materials, fuels,

machinery parts, chemicals, fertilizers, tools and implements. Since, the

Estate is situated in the border of the town Gudalur, the procurement of

simple items could be made with no time loss. Furthermore, any items

required from Coimbatore and Mysore are easily conveyed with the daily

plying roadways transport media.

Hence, the investment of a huge uneconomic capital towards inventory and

stocks are minimized. However, the stocks held in the various stores could

meet the requirement of the estate for a month or more.

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Type of Inventory Control

There are three types of Inventory Systems in vogue in the industries,

factories

and plantations. They are :-

a) FIFO System - First In & First Out.

b) LIFO System – Last In & First Out.

There are some defects noticed in both the above systems or it may not be

matching in maintaining the inventory for plantations and tea factory. As

such Silver Cloud maintains its Inventory on Weighted Average System.

Weighted Average System - This system is more acceptable by

plantations and factories. Opening Balance Value + Quantity

Received Stocks Value + Quantity

Total of the above two divided by the total quantity and arrived

at the average per unit.

This average rate is applied in arriving at the expenditure on

used quantity of the particular inventory item.

JIT: It is the prime responsibility of the Inventory Section that all inventory

should be judicially utilized according to requirement and the time factor is a

major criteria. The inventories such chemicals, fertilizers are liable to

deteriorate when time barred. As such one should be alert in the usage and

distribution of materials according to its quality stability at all times.

Type of Materials – The following are the type of materials stored in Silver

Cloud Estates :-

a) Packing Materials of Jute & Paper Bags (used for packing tea).

b) Laminated pouches of various capacity.( -do- ).

c) Machinery Spares.

d) Motor Vehicle Spares.

e) Fuel such – Diesel & Petrol (For vehicles & Generators)

f) Fuel for Driers (Firewood)

g) Fertilizer.

h) Chemicals.

i) Tools

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j) Spraying Machines.

In addition the teas manufactured and unsold at the end of the month is

taken into account as stock in hand.

k) The teas sent to the Brokers and lying in their godown which are

unsold

also should be taken into stock value.

l) The teas on transit at the end of the month on its way to the other

states

should be added to the inventory or stock value.

Effluent Treatment: As it is discussed in earlier chapters, the management

is vigilant enough in the pollution control of Air & Water.

The Smoke Exhaust Chimney to discharge the smoke from the factory has

been constructed to the height specified by the Inspector of Factories and

Chief Inspector of Factories in order to avoid air pollution.

The effluent water of the factory is very much less and does not contain any

harmful chemicals discharge to damage human or plant life. However, a

systematic drainage facility is provided to discharge the effluent water from

the factory.

Collective bargaining/negotiations : The management is always of the

view in collecting bargaining negotiations with the workers group by

attending to their needs and grievances and in return obviously the

management has its right to seek co-operation of the working class to the

achieve the target of the Management.

Estimated budget for future enhancement : The plantation and factory

have a routine system of preparing annual budget to accommodate its

functions during the year, any modifications involved, improvement

envisaged, and a cash flow based on the estimated inflow and outflow.

CONCLUSION

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It is a sincere and inclined approach bestowed with interest to make this

study a success in all its merits. A time of value I experienced during these

few days to analyse the in and out of an industry cum plantation and no

doubt the Plantation Sector remains the back bone of Nilgiris. Many of the

areas covered in this report are of course meaningful and judicial in its kind.

However, I would like to see an evaluated results from Silver Cloud Tea

Estates and Silver Cloud Tea Factory in its future functions.