GSFC Ambaliya Ashvin Roll No - 1 Final Approval

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.
NAGADA BBA COLLAGE
AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE
INTRODUCTION OF FERTILIZERS INDUSTRY
Fertilizers are substances that supply plant

nutrients or amend soil fertility. They are the most
effective means of increasing crop production and
of improving the quality of food and fodder.
Fertilizers are used in order to supplement the
natural nutrient supply in the soil, especially to
correct the (yield-limiting) minimum factor.
Fertilizers are soil amendments applied to promote
plant growth; the main nutrients present in fertilizer
are nitrogen, phosphorus, and potassium (the
'macronutrients')
and
other
nutrients
('micronutrients') are added in smaller amounts.
Fertilizers are usually directly applied to soil, and
also sprayed on leaves ('foliar feeding').
Figure 1: Fertilizer Industry
Organic fertilizers or and some mined inorganic fertilizers have been used for
many centuries, whereas chemically synthesized inorganic fertilizers were only
widely developed during the industrial revolution. Increased understanding and use
of fertilizers were important parts of the pre-industrial British Agricultural
Revolution and the industrial green revolution of the 20th century. Inorganic
fertilizer use has also significantly supported global population growth it has
been estimated that almost half the people on the Earth are currently fed as a result
of artificial nitrogen fertilizer use. Fertilizers come in various shapes and forms.
The most typical form is granular fertilizer (powder form), usually come in a bag /
box. The next most common form is liquid fertilizer; some advantages of liquid
lawn fertilizer are its immediate effect and wide coverage. Moreover, there is also
a form of slow-release fertilizer which solves the problem of "burning" the plants
due to excessive nutrients. This kind of fertilizer come in various form like
fertilizer spikes, tabs, etc. Finally, organic fertilizer is on the rise as people are
resorting to a green / environmental friendly products.
HISTORY OF FERTILIZERS INDUSTRY

Earliest Times
1. In the earliest times, people noted that the first yield on a plot of land
qualitatively surpassed subsequent ones. Thus, there had to be a way of
maintaining or even enhancing yield while staying on the same plot of land.
Eventually, people came up with the idea of using animal manure to do so.
Evolution of Materials
2. With time, natural fertilization became more refined. For instance, the ancient
Egyptians added ashes from burned weeds to soil. Other materials used in
ancient times included sea shells, clay, and vegetable waste.
Advent of Fertilizer Technology
3. Starting from the early 17th century, people researched other modes of
fertilization, particularly those of a chemical nature. For instance, GermanDutch chemist Johann Glauber (c. 1604 to 1670), developed the first mineral
fertilizer, which comprised saltpeter, lime, phosphoric acid, nitrogen, and
potash.
Justus von Liebig
4. It was organic chemist Justus von Liebig (1803 to 1873) who discovered that
plants need mineral elements such as nitrogen and phosphorous for optimal
growth. His work led to a half-century of exploring the chemical needs of plants
to improve on fertilizer compositions. For this, he is referred to as the "Father of
the Fertilizer Industry." Sir John Lawes (1814 to 1900) would discover
superphosphate, which became the first chemical fertilizer.
Core Plant Nutrients
5. By the 20th century, it was understood that the core plant nutrients are nitrogen,
phosphorous, and potassium. Nitrogen is considered the most needed nutrient--as an essential building block for assembling amino acids, nucleic acids, and
protein. Plants with less nitrogen tend to be smaller, less fruitful, and have more
of a yellowish color. With that knowledge of plant chemical needs, the
chemical fertilizer industry experienced significant growth, particularly after
World War I, which ended in 1918.
Chinese and British were the first people

who tried to enriched the soil by adding
bone meals and marls, which contains
Carbonate Calcium and clays. In 19th
century , by developing the chemistry
science , the chemist found that in plant
growth the composition in mineral elements
of the soil would be important . During the
ages men found that different kinds of
fertilizer will help them to make the soil
more fertil and then they added Potassium,
Figure 2 : History Fertilizer industry
Calcium , Magnesium , Nitrate , Phosphate
and Sulphates . For the last years of the 19th century , the markets faced different
types of fertilizers was adapted for products in three main categories : 1 - Nitrogen
2 - Potash 3 - Phosphate .
Now a days, the fertilizer industry in the major fertilizer consuming
markets is confronted with the challenge and opportunities associated with
satisfying agricultural demand. Under pressure from the market, regulators
and the public, agriculture is changing. This provides an opportunity for the
fertilizer industry to add value to its operations, though the products and
services it provides. Today Although organic fertilizers are still used today
throughout the world, chemical fertilizers are more popular. Also, research is
still being conducted to reduce the harmful environmental effects of fertilizer
use, as well as discovering new, less costly sources of fertilizers.
FERTILIZERS INDUSTRIES IN INDIA

The fertilizer industry presents one of the most intensive sectors within the Indian
economy and is therefore of particular interest in the context of both local and
global environmental discussions. Increases in productivity through the adoption of
more efficient and cleaner technologies in the manufacturing sector will be most
effective in merging economic, environmental, and social development objectives.
A historical examination of productivity growth in Indias industries embedded
into a broader analysis of structural composition and policy changes will help
identify potential future development strategies that lead towards a more
sustainable development path.
Optimum fertilizer application plays a key role in
improving the productivity of various crops. It is a
critical component of the strategy for selfsufficiency in food grains to feed a rapidly growing
population. Concerted efforts in this direction have
resulted in a substantial increase in agricultural
production and productivity. Issues of productivity
growth and patterns of substitution in the fertilizer
sector as well as in other energy intensive industries
in India have been discussed from various
perspectives. Historical estimates vary from
indicating an improvement to a decline in the
sectors productivity. The variation depends mainly Figure 3: fertilizer Industry in India
on the time period considered, the source of data, the type of indices and
econometric specifications used for reporting productivity growth. Regarding
patterns of substitution most analyses focus on interfuel substitution possibilities in
the context of rising energy demand. Not much research has been conducted on
patterns of substitution among the primary and secondary input factors: Capital,
labor, energy and materials. However, analyzing the use and substitution
possibilities of these factors as well as identifying the main drivers of productivity
growth among these and other factors is of special importance for understanding
technological and overall development of an industry.
LOCATION OF ALL FERTILIZER COMPANY IN INDIA
Figure 4: Location of fertilizer Industry in India
HISTORY OF FERTILIZERS INDUSTRIES IN

INDIA
The fertilizer plant was established in 1906 in Tamil Nadu. The Indian fertilizer
industry has been supplying a substantial portion of the growing demand of
fertilizers. It had a very humble beginning in 1906, when the first manufacturing
unit was set up in Ranipet near Chennai with a production capacity of 6000 Metric
Tonne (MT) of Single Superphosphate per annum. The Fertilizer & Chemicals
Travancore Ltd. (FACT) at Cochin in Kerala and the Fertilizer Corporation of
India Ltd., Sindri in Bihar, were the first
large sized fertilizer plants to be set up in
the forties and fifties with a view to
establishing a base for industrialization
and
achieving
self-sufficiency
in
foodgrains. The Green Revolution in the
late sixties gave an impetus to the growth
of the fertilizer industry in India. The
eighties witnessed a significant addition to
the fertilizer production capacity.
Figure 5: History Fertilizer industry in India
The growth of the fertilizer industry began in

1951 with plant establishment by Fertilizer
Corporation of India. The constant demand of
fertilizer resulted in Green Revolution and lead to
spreading of industry in industry in several parts
of India. Today, Tamil Nadu, Uttar Pradesh,
Gujarat, Kerala and Punjab produce over half of
the total produce of fertilizer required in India.
Apart from them, Andhra Pradesh, Rajasthan,
Orissa, Bihar, Assam,
Figure 6: Fertilizer Product Maharashtra, Rajasthan, West
Bengal, Madhya Pradesh, Delhi, Goa and Karnataka are also important producers
of fertilizers. The ease of obtainability of natural gas resulted in the wide spread of
the fertilizer industry. India produces nitrogenous nearly 11 million tones,
phosphate 4 million tones and potash fertilizers to 1.7 million tones. The country
imports potassium from abroad.
INTRODUCTION OF UNITS
Gujarat State Fertilizer & Chemical Limited is one of the largest fertilizer
unit in Asia. Gujarat State Fertilizer & Chemical Limited was incorporated
under company act 1956, on February 1962 as joint sector unit due to an initiative
taken by government of Gujarat, after formation of Gujarat state. Newly formed
state of Gujarat was left with critical deficit in fertilizer supply thus creating time
government of Gujarat came forward and took various initiatives to promote
agriculture industry by ensuring the quality, quantity, right time and right price of
the basic inputs required for the same fertilizer industry being the sky factor of
agriculture growth and also got the opportunity to grow. Initially with the equity
structure, comprising of 49% of State Government participation and 51% of
Public and Financial Institutions, today the Governments involvement has come
down to 38.4%.
Gujarat State Fertilizer & Chemical Limited is taking its philosophy of care
and extending it to every facet of its existence, employees, suppliers, services,
society and even the environment. GSFC has grown from strength and perks in the
field of technological excellence, production and financial performance giving due
consideration in the field of safety and environment. GSFC incenant strive for
product diversification and value addition has create an product mix raging from
more than 24 brands of fertilizer to petrochemical, chemical, industrial gases,
plastics, fiber, polymers and other products.
Figure 7: units of GSFC
PRODUCTS OF GSFC
Industrial Product:
ISO 9001 Certified
Anhydrous Ammonia
Argon Gas
Caprolactam
Melamine
Methyl Ethyl Ketoxime
Nylon-6
Oleum
Sulphuric Acid
Other product
Acetone Cyanohydrine - ACH
Anone-Anol Mixture
Cyclohexane
Cyclohexanone
Hydroxyamine Sulphate
Methacrylic Acid - MAA
Methyl Methacrylate - MMA
Nitric Acid
Nylon-6 Filament Yarn
Polymethyl Methacrylate (Pellets)
Polymethyl Methacrylate (Sheet)
Agro products:
Fertilizers
Urea
Ammonium Sulphate
Di-Ammonium Phosphate
APS
NPK
Water-soluble fertilizers
Micro Mix
Gypsum
Bio-Fertilizers
Azotobacter Culture
Azospirillum Culture
Phosphate
Solubilizing
Bacteria (PSB)
Rhizobium Culture
Bio Fuels
Plant Tissue Culture
Seeds
Biotech products:
Sardargib
Sardar Eco Green
Sardarvam
Sardartrap & Sardarlures
Sardarneem
Gujarat State Fertilizer &

Chemical Limited (sikka unit) company produced DAP and NPK. At the sikka
At
plant company produces only these two products, which were totally base on the
imported raw material for the purpose of import GSFC establish its own jetty since
the starting of the plant. At the jetty there were two big tanks for the storage of the
raw material from that it supplies to the plant for the produced. As an organization
formed for supporting the farmers, Gujarat State Fertilizer & Chemical
Limiteds every act revolves around the avowed goal of not only selling
fertilizers, but also offering happiness. Translating this belief has been the
constant standard that its every act must measure up to.
HISTORY AND DEVELOPMENT OF COMPANY

10
Gujarat State Fertilizer & Chemical Limited was incorporated under

company act 1956, on February 1962 as joint sector unit. The company has a State
of the fertilizer Formulation Units for Manufacturing of fertilizers, industrial
products, Fiber, Polymers, plastic, Bio-tech, chemical and other products.
1967 The Genesis
Translating GSFC's philosophy is its vast network of plants that make its possible.
This infrastructure took its first step in 1967 with the setting up of 6 plants with an
initial investment of Rs. 40 Crores. These six nitrogenous and phosphatic fertilizer
plants started production of Ammonia, Urea, Ammonia Sulphate (AS),
Diammonium Phosphate (DAP), Sulphuric Acid and Phosphoric Acid.
1969 First Expansion
The expansion of Ammonia and Urea production began with Phase II in 1969 and
an investment of Rs. 23 Crores was made to meet the increasing demand for
Nitrogenous fertilizers.
1974 - Phase III
Phase III began in 1974 when diversification of products occurred.
Plants to manufacture Caprolactam, Melamine, Nylon-6, Oleum- SO 2 and OXOSynthesis Gas unit and Purge Gas Recovery Unit were set up. With Phase III,
GSFC became India's first & only Melamine producer. This provided the boost for
further diversification to Nylons / Fibers / Melamine / MEK-Oxime and industrial
gases like Argon Gas & Oxo Synthesis Gas.
1989 - Further expansion and diversification
Three Co-generation units using LSHS and Natural Gas were set up. Also further
expansion of Ammonia and Caprolactam production was initiated. Diversification
into Fibers, Nylons, and Acrylic was completed and a DAP plant was also set up.
This extensive diversification and expansion drive has been fuelled by GSFC's
compelling need to ensure full utilization of available resources while also
maintaining its profitability and leadership status.
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MISSION
To provide quality inputs and services to
agriculture and industry at competitive price and

thereby improving quality of life of the people.
To achieve excellence through creativity,
innovation and services to the society.
VISION
To emerge as a world-class, multi-product, eco
friendly
global
company
through
technology
development innovation and customer satisfaction

and thereby to contribute to the warfare of society.
VALUE
Strong
Commitment
towards
clean
environment and social services.
Hard work, Discipline, Integrity, Honesty,

Dedication, Mutual respect and Transparency.
Strong commitment to quality of products and

customer services.
Promotion of creativity and professionalism

through HRD.
Figure 8: Mission, Vision and value
12
NAME AND ADDREST OF COMPANY

NAME
GUJARAT STATE FERTILIZERS &

CHEMICALS LTD.
ESTD.
FEBRUARY 1, 1962
ADDRESS
Gujarat State fertilizers & Chemicals ltd.

Sikka Unit,
P. O. Moti Khavadi,
Jamnagar 361 140,
Gujarat.
TELEPHONE
288 2344100,
288 2344102,
288 2432200 to 288 2432300.
FAX
288 2344034.
WEBSITE
WWW. gsfclimited .Com
E-MAIL
su@gsfcltd.com
13
REGISTERED OFFICE
Figure 9: Registered Office
REGISTERED OFFICE
GUJARAT STATE FERTILIZERS AND CHEMICALS LTD.

P.O. Fertilizernagar -391 750,
Dist. Vadodara,
Gujarat,
India.
PHONE: 91-265-2242051,
91-265-2242451,
91-265-2242651,
91-265-2242751.
FAX:
91-265-2240966,
91-265-2240119.
14
FORM OF ORGANIZATION
There are different forms of Organization. The Form of Organization
Chart is as follows.
CHART 1: FORM OF ORGANIZATION

There are different forms of organization, which can be listed as follows:
(1) Sole proprietorship firm
(2) Partnership firm
(3) Joint Stock Company
(4) Co-operative Society
M/s. GUJARAT STATE FERTILIZERS & CHEMICALS LTD.
Company is Join Venture unit.
49% of the state government participation and
51% of the public and financial institutions.
15
SIZE OF THE ORGANISZATION

There are different types of size organization. Which can classified are as under.
CHART 2: SIZE OF ORGANIZATION

According to the size, an industry can be classified into ways:
(1) Tiny industry
(2) Small-scale industry
(3) Medium scale industry
(4) Large scale industry.
According to the above classification of industries, Investment in the GUJARAT
STAE FERTILIZERS AND CHEMICALS is more than 100 crore, so The
GUJARAT STATE FERTILIZERS AND CHEMICALS LTD. is a large
scale industry.
16
PROMOTER
BOARD OF DIRECTORS
SHRI A. K. JOTI
SHRI D. C. ANJARIA
PROF. VASANT P. GANDHI
SHRI AJAY N. SHAH
SHRI VIJAI KAPOOR
SHRI P. N. ROY CHOWDHURY
SHRI M. M. SRIVASTAVA
SHRI D. J. PANDIAN
SHRI H. V. PATEL
Chairman
Managing Director
EXECUTIVE DIRECTOR
SHRI H. P. PANDYA
GENERAL MANAGER (FINANCE)
SHRI B. M. BHORANIA
COMPANY SECRETARY & DY. GENERAL MANAGER
(LEGAL & INDUSTRIAL RELATIONS)
CS V. V. VACHHRAJANI
STATUTORY AUDITORS
M/s. S. C. Bapna & Associates, Vadodara (for 2009-10)
M/s. Prakash Chandra Jain & Co., Vadodara (for 2010-11)
BRANCH AUDITORS
(Polymers & Fibre Units)
M/s. Khedkar Shah & Soni, Vadodara
COST AUDITORS
M/s. Diwanji & Associates, Vadodara
17
MANAGING GROUP
The total number of qualified staff in GUJARAT STATE FERTILIZERS
AND CHEMICALS LTD. Are as follows.
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Department
Officer
Staff
Grand
Total
1
11
2
10
3
3
3
4
3
2
5
4
3
3
1
1
3
3
33
12
31
32
17
10
2
9
8
10
13
11
32
1
7
2
2
1
44
14
41
35
20
13
6
12
10
15
17
14
35
2
8
5
5
64
252
316
Unit Chief Office

DAP
Bagging
Utility / Services
Mechanical
Electrical
Instrument
Civil
Quality Control
Logistics
Materials
Safety & Fire
Finance & Account
Personal & Admn.
System & Application
Medical
Security
Posted/ Trn. At HO/Delhi
Total
18
Table 1: Managing Group
Source: general report of gsfc
BANKERS
Bank of Broda
Indian Bank
State Bank of India
Indian Overseas Bank
Bank of India
ICICI Bank ltd.
Vijaya Bank
Dena Bank
Yes Bank ltd.
Axis Bank ltd.
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Figure 11: Banker
AWARDS OF GSFC
Figure 12: Awards
Year
Name of Award
Award Issued By / For
2007
GSFC bags National Award for

Excellence in Cost Management
for 2006
by the Honble Minister of Corporate

Affairs
20
2002
National Award for one of the

best employers for disabled
persons
FAI video film competition
Award for increased in Fertilizer
use efficiency through micro
irrigation system to GGRC (a
company jointly promoted by
GSFC, GAIC & GNFC)
Award for Production, Promotion
& Marketing of Bio-fertilizers
Best Production Performance
Award for Complex (P2O5)
Fertilizer Plant
ICWAI National Award for
Excellence in Cost Management2005
Important in Overall
Performance-2004
ISO 90012000 in 2002
1998
National Safety Award 1998
2006
2006
2006
2006
2005
2004
1997- JNMN Award 1997-98

98
199697
199697
199697
199697
FAI Award
NPC Award 1996-97
FAI Award 1996-97
FAI Runners up Award 1996-97
by Ministry of Social Justice

and Empowerment, New Delhi
by Fertilizer Association of India-New
Delhi.

Delhi.
Delhi.
by Institute of Cost & Works
Accountants of India.
Delhi.
For Manufacture and Marketing of
Caprolcatam (Flakes & Crystals),
Melamine, Nylon-6, Sulphuric Acid,
Oleum, Ammonia, Argon, Carbon Dioxide, Urea, MEK-Oxime and other
associated utilities and offsites
British Safety Council awarded this for
maintaining a good record, which was
significantly better than the national
average.
Best Product and Productivity Gold
Award from Jawaharlal Nehru
Memorial National Award
Best performance in Biofertilizer
Best performance in Fertilizer
Industries
Best Phosphatic Fertilizer
For Production and performance for
Nitrogenous group of plants
(Ammonia, Urea Plants).
21
NPC Award 1994-95

199495
1993- NPC Award 1993-94
94
1992- JNM Award 1992-93
93
1992- NPC Award 1992-93
93
TABLE 2: Awards of GSFC
Best Performance in
Biofertilizer production and National
Activities
Best Performance in Biofertilizer
production and National Activities
Environment Control Award from
Jawaharlal Nehru Memorial Hyderabad
Best in Biofertilizer Production and
National Activities
Source: www.gsfclimited.com/award.asp
Moreover, several trophies and shields have also been awarded every year at state
and related - level competition shows on Horticulture, Vegetables, Fruits and
Flowers at different places.
GSFC has also received 40 State, 12 National and 18 International Safety Awards.
ACHIVEMENT
Since its inception, GSFC has constantly striven to re-define its role in a dynamic
environment. In the process, earning a commendable reputation as an organization
that not only provides just products but also the knowledge to use them wisely.
First joint sector Industrial Complex in India -Equity Capital of State Government
49% and public 51%.
First to erect the fertilizer plants within the shortest project completion period
-Completed within a period of two years of the day
of its inception.
First Fertilizer unit to be assisted by IDBI's
Development Assistance Fund -As GSFC was a
industrial project to secure direct and active
participation of farmers in the share Capital through
equity subscription of over Rs 1 crore - GSFC
launched a massive door to door drive and collected
Rs.
1
Crore.
Figure 13: Achievement
First to adopt the Steam Naphtha Reforming process for manufacture of Ammonia.
It is the biggest technical contribution.
First to manufacture DAP complex fertilizer in India.
22
First to develop and use the Phospho-Gypsum Process for

manufacture of Ammonium Sulphate.
First to develop indigenous catalyst for manufacture of Cyclohexane. It is an
intermediate for manufacture of caprolactam.
First to set up the caprolactam Plant in India - in 1974 decided to diversify to
caprolactam production which is a raw material for Nylon Yarn and Tyre Cord.
First to utilise indigenous Rock Phosphate for manufacture Phosphoric Acid.
First to set up effluent treatment facilities for removing Phosphate and Fluroide
from liquid effluent.
First to use indigenous Primary Steam Naphtha Reformer Tubes and indigenous
Primary Steam Naphtha reforming Catalyst in the Ammonia plants.
First to Recover Argon from Purge Gas In 1981 Company entered market of
industrial gases by making Argon Gas used for Welding in Engg. & Fabrication
industries.
First to establish the Melamine Plant.
First largest Nylon -6 Plant for Eng., Plastics Based on know of M/s Inventa of
Switzerland - Build at a cost of Rs. 14 Crore the product has a variety of
application in number of industries.
ORAGANIZATION STRUCTURE
Organization structure is a basic framework of the company management. It is the
pattern in which various parts of components are interred connects. In GUJARAT
STATE FERTILIZER & CHEMICAL LTD. there is a line and staff of
Organization in which responsibilities flow upward and authorities flow downward
and upwards.
The Organization chart of GUJARAT STATE FERTILIZER & CHEMICAL
LTD. is as follow:
Chairman
Managing Director
Executive Director
General Manager (Dept. wise)

23
Deputy General Manager
Senior Manager
Manager
Senior Officer
Officer
Assistance Officer
Staff Grade Carder: A, B, C, D, E, & III, IV, V Respectively

CHART 3: Organization Structure
Source: general report of gsfc
LOCATION OF THE UNIT

One of the early decisions that an entrepreneur has to make is the choice of
location of the business. The process of locating any firm in a particular industry is
called industrial location. The entrepreneur has to locate the firm at such a place
where the cost of production and distribution is lower. The aim of any business is
the maximization of profit and minimization of cost of production. Thus an
entrepreneur must think carefully while deciding the location of any industry.
Location means selection of place for establishment of industry where the cost of
production is the lowest at the time of establishment.
Gujarat State Fertilizer & Chemical Limited (Sikka Unit) located at Moti
khavadi in Jamnagar. There are several factors, which are taken into consideration
while selecting location of an industry.
AVAILABILITY OF RAW MATERIAL
Raw material is the basic need of any company to
manufacture different products. Any industry should be
located where the raw material is easily available.
24
Availability of raw material at proper time, at reasonable rate,

in right quality, in quantity, etc directly affects the price of the final product. Here,
at Gujarat State Fertilizer & Chemical Limited Raw Material of Ammonia,
Phosphoric Acid (P.A.), Sulphuric Acid, low Figure 14: Raw material Sulphur Heavy
Stock is easily available from different state of India through truck and some raw
material import from foreign country. It can be easily transport trough the seaway.
AVAILABILITY OF LABOUR
Labour plays an important role in the manufacturing process of the company.
Manpower input, i.e., labour could be put at second number after raw material.
Cheaper and efficient labour availability enrich the firm and thus, it is very crucial
in nature.Gujarat State Fertilizer & Chemical Limited is located at
Motikhavadi in Jamnagar where easily available labour from nearness to village
and city of Jamnagar and through various contractor at reasonable rate.
INFRASTRUCTURE FACILITIES
Infrastructure facilities are the basic necessity for
each and every industry to bring raw materials,
process the material, and produce finished goods
and to supply finish goods to the buyers.
Particularly, manufacturing industries must be
located where different infrastructure facilities are
easily available like transportation, power, water,
etc. for the smooth and uninterrupted production.
Jamnagar is having all the modes of transportation Figure 15: Infrastructure
like Sea, Air, Railway, and Road. Thus, Gujarat State Fertilizer & Chemical
Limited is facilitated with good infrastructure facility.
MARKET
Market Is very important now a days to survive in this tough competition. The
main concentration of every product is to get potential market, and proximity to the
market is one of the most considerable variables.
TRANSPORTATION
25
There are various types of

transportation modes available in our country,
like, shipping transport, road transport, railway
transport and also the air transport.
Organizations can selects any of the above
transportation modes to move their products
from the factory to the stores department and
then to the end users. Gujarat State
Fertilizer & Chemical Limited uses the
road, rail and seaway. The road transport uses Figure 16: Transportation
for
brings raw material and delivery of product in domestic and nation market. The rail
way uses for delivery of the product in domestic and national market. The seaway
uses for Import raw Material.
AVAILABILITY OF POWER
In an atomization industry, availability of power is
very important for its production functions. Even a
single minute stoppage of production in such
industries will be resulted in the loss of thousands of
rupees. So, the availability of power is very important
for continuous production of the products. GSFC
(Sikka Unit), at Motikhavadi is getting enough power
through nearness power station to continue its
production process.
Figure 17: Power
So, looking to all these factors of the Gujarat State Fertilizer & Chemical
Limited has established the plant in an industrial estate.
The following is the location address of Gujarat State Fertilizer & Chemical
Limited.
26
Gujarat State Fertilizer & Chemical Limited.

Sikka Unit,
P. O. Moti Khavadi,
Jamnagar 361 140,
Gujarat.
27 K.M.
Way to Jamnagar
LOCATION OF THE COMPANY

JAMNAGAR
MotiKhavadi
DWARKA
MotiKhavadi
HIGHWAY
GSFC
RELIANCE
INDUSTRY
(Sikka Unit)
PLANT
560 acres
GSFC
TOWNSHIP
Way to
jamkhambhaliya
27 K.M.
27
RELIANCE
TOWN SHIP
Figure 18: Location of Company
Source: www.gsfclimited.com/mapofsite
TIME KEEPING SYSTEM

Time waits for none and Man has no control over time. Thus, time keeping
system is very important for each and every organization.Time keeping means to
keep a record of the presence of employee at work. Time keeping systems main
duty is to record the presence of each employee. In GUJARAT STATE
FERTILIZER & CHEMICAL LTD has separate time keeping system.
In GSFC time keeping system is very systematic, as the plant works 24 hours.
GSFC has three shifts for its plant department and one for a general shift.
Generally one shift for plant is a eight hours. There are electric systems to note the
time workers.
The timings are as follows:
SHIFT
FOR PLANT
A
B
C
TIME
77 A.M. to 3 P.M.
3 P.M. to 11 P.M.
11 P.M. to 7 A.M.
28
FOR GENERAL SHIFT
ADMINISTRATION
DEPARTMENT
8: 30 A.M. to 5: 00 P.M.
Table 3: Time Keeping System
There is computerized timekeeping system in GSFC each employee has given a

card on which Employee Number (this number is the departmental code), Name,
Department Name are mentioned. A HOD /Employee / Worker when comes to the
unit, they insert the card in to the electronic punching machine before enter into the
department concerned. The machine punches the card and when this is done the
Employee number displayed on the machine is states that the worker is present for
that particular day.
Figure 19:
When any employee comes late in the organization, he has to sign the in a late
employee registration mentioned at the main gate itself. They have to maintain
how many minutes late. If any employee is late by one hour then he/she will not
get permission for the work such day. If companys vehicle will late then no memo
issued to employees.
(Mentioned Memo Is Issued For Late Coming Employees)
29
Figure
20: Mention Memo
INTEGRATED MANAGEMENT SYSTEM (QEHSMS) OF GSFC
Q = QUALITY.
E = ENVIRONMENTAL.
H = HEALTH AND,
S = SAFETY.
MANAGEMENT SYSTEM.
QUALITY POLICY OF GSFC

Commit of excellence and continual improvement in QUALITY of products,
services and systems to ensure:
Customer satisfaction.
Conservation of Energy and Natural Resources.
Complience with Statutory and other Regulation with respect to products.
ENVIRONMENT
30
GSFC looks upon the environment as a legacy for the

future generations. The world we create today is the world our children will
live in tomorrow.
Environment car is of prime importance in any operational policies in GSFC.
GSFC has promoted 56 KM long, closed effulent disposal channel.
GSFC is putting all the efforts towards zero pollution and has invested
substantial amount for controlling and minimisng liquid effulents, air pollution
and monitoring & managing solid waste.
GSFC has developed a green belt that spreads over 34% of its total land area.
Company has developed a beautiful lotus pond with garden inside the battery
limit area with ducks and natural landscaping.
Company is converting all kind of bio-mass and canteen / township waste into
environment into environment friendly product-Bio-vermi compost, a step
towards clean and beautiful Nirmal GSFC.
National Bird - Peacock are seen roaming in Caprolactum Plants. This speaks
about GSFCs concern for environment.
SAFETY AND HEALTH

GSFC continuous to give priority to the field of safety, health and environment
GSFC got many awards in the field of safety. GSFC makes conscious efforts to
minimize generation of waste and tries to recycle it to the maximum extent for
the protection of environment. A facility for crushing sulfur muck generated
during melting and filtration operation in sulfuric acid manufactured has been
installed. The crushed sulfur muck will be recycle as filler material during the
process of manufacture of DAP fertilizer.
Efforts to increase safety awareness among employee, contractor, neighboring
village and even school children have been continued during the year.
ENVIRONMENT
QUALITY
SEFTY
31
Figure 21: certificates
Source: www.gsfclimited.com/qehsms
32
INTRODUCTION OF PRODUCTION DEPARTMENT

Production and operations management is the process, which combines and
transforms various resources used in the production and operations sub system of
the organization into value added product and services in a controlled manner as
per the policies of the organization. Therefore, it is that part of an organization,
which is concerned with the transformation of a range of inputs in to the required
(products and services) having the requisite quality level.
E.S. Buffa defines production management as, Production management deals
with decision making related to production processes so that the resulting goods
or services are produced according to specifications, in the amount and by the
schedule demanded and out of minimum cost.
Gujarat State Fertilizers & Chemicals Limited (GSFC). The Group's principal
activities are to manufacture and distribute fertilizers both nitrogenous and
phosphate and industrial products such as Caprolcatam and nylon. The Group
operates in two business segments:
A. FERTILIZER PRODUCTS
B. INDUSTRIAL PRODUCTS
33
The Fertilizer Products segment includes urea, ammonium sulphate, Diammonium

Phosphate and ammonium phosphate sulphate and NPK traded fertilizer products.
The Industrial Products segment comprises of Caprolcatam, nylon-6, nylon
filament yarn and nylon chips, melamine, polymer products and traded industrial
products. GSFC Sikka Unit is producing DAP continuously in three shifts. The
process of production is handled by the engineers and there is a separate control
room from where they control the production unit. In this control room there are
fully automatic computerized machineries with which the engineers have control
over the process.
In G.S.F.C. there are following departments for production of fertilizer:
(1) Utility Department.
(2) DAP Department.
(3) Bagging Department.
(4) Storage Department.
(5) Dispatch Department.
ORGANISATION STRUCTURE OF PRODUCTION

The organization structures of production department of Gujarat State Fertilizers &
Chemicals Ltd. are as follows.
34
Source: production report of gsfc sikka unit
CHART 4: Organization Structure of Production Department
MANUFACTURING PROCESS
35
UTILITIES
Fuel oil
There are two no. of storage tank each having capacity to store 572 M3 of
L.S.H.S. (Furnace Oil) with unloading and loading facility.
Plant Air / Instrument Air
Thre are four no. of two stage non-lubricated double acting vertical water cooling
reciprocating type air compressors each having capacity of 600 M3/hour at 7kg/gm
gauge pressure.
Steam Generating Plant
There are two no. of three passes horizontal reverse smoke tube type boilers, each
having capacity to produced supertieated steam at a pressure of 12 kg/gm2g. for
boiler feed water treatment, there are cation exchanger and softner with feed
storage tank.
Power
Gujarat State Fertilizers & Chemicals Ltd. Sikka Unit goes power through 66kv
line from G.E.B. Sikka. Maximum power requrement is 3600-4000kv.
Water
Water is suppled from Panna, Sasoi and Jogvad Dam also from site bore-walls and
storage to two main pond at motikhavadi each having capicity of 10,000 gallons.
DAP PLANT
RAW MATERIAL:
36
To produced DAP (Die-Ammonia Phosphate) fertilizer raw material are as Under.

1) Liquid Ammonia :
Anhydrous Ammonia comes from storage tank at around -33oc temperature in
PUF (Polyurethane Resin Fiber) pipeline which is 99.0 + 0.5wt and contain 0.5
moisture (maximum) also contain oil up to 50 pom (maximum) with battery limit
pressure 9 to 11 kg/cm2gm. Here to produce 30 MTPH DAP, quantity of
ammonia required is 6.70 mtph in liquid phase.
2) Phosphoric Acid :
Phosphoric Acid used in process is added to wet section to different scrubber. The
concentration of P.A. is 50 to 56% and contains also some other reactant. From the
storage tank, P.A. is storage in the tank which is mechanically agitated having
capacity of 748 M3 and known as P.A. Day tank. The acid is discharge from this
tank with the use of centrifugal pump. Specific gravity of P.A. Which we use in
wet section 1.63 1.79 (at 30oc) and at the temperature 7 to 46oc. Phosphoric
Acid required to produce 30 MTPH DAP is 26 MTPH with contain 30.95 MTPH
P2O5.
3) Sulphuric Acid :
Sulphuric Acid is also important raw material for the production of the DAP. Its
reaction with the NH3 gives supplemental nitrogen for the grade correction of
DAP. Sulphuric Acid used in process is around 98 1% by wt. and specific
gravity is 1.83. Sulphuric Acid comes from the holding tank by pumping bluish
green pipeline.
PROCESS FLOW DIAGRAM OF DAP
37
SULPH. ACID
AMMONIA
REACTION SECTION
(PRE - NEUTRALISER)
AMM
ONIA
PHOS. ACID
FUMES
SCRUBBER
GRANULATION
( GRANULATOR )
RECYCLE
MATERIAL
DRYING
(DRYER)
DRYER
CYCLONE
TAIL GAS
SCRUBBER
DRYER
SCRUBBER
SCEREENING
( VIBRATING
SCREENS )
CONVAEYING
( ELEVATOR DRAG
CONVEYORS)
DUST
CYCLONES
PRODUCT
COLLING
COOLER
CYCLONES
DUST
SCRUBBER
COOLER
SCRUBBER
BULK STORAGE OR
BAGGING PLANT
DRY SECTION
CHART 5: Process Flow Diagram
WET SECTION
38
For the production of DAP fertilizer main

reaction carried out between Liquid Ammonia and Phosphoric Acid. The DAP
plant consist of two parallel train which are identical in all respect. Both A and B
train have each production capacity of 1200 MT of DAP.
The DAP Production is divided into two sections :
A) Dry Section
B) Wet Section
A) DRY SECTION:
In Dry Section main chemical process take place in granulator.
It consists of six Sub Section viz.
1) Granulation
3) Screening
5) Conveying
2) Drying
4) Cooling
6) Product
1) Granulation Section :
Capacity : 298 MTPH
RPM
: 8
sheet
Size : 3.35 M Dia x 6.7 m Long

Material : steel with special ratter
Granulator is used to granuies of DAP. It is arrange at some slop from ground so

that the granulated material fall outside. In the granulator for the process liquid
ammonia, slurry from preneutralizer and product from elevator are added and by
reaction we get DAP. For the production of 30 MTPH DAP, we require 35.33
MTPH slurry from the preneutralizer and 182.19 MTPH recycle solid. Recycle slid
contain 5.00 MTPH recycle dust come from different cyclone 21.26 MTPH
crushed oversize and 155.93 MTPH of fines continuous spray of liquid ammonia is
applies with sparger at the rate of 2.61 MTPH. The reaction is exothermic so heat
is produced during the process and temperature of product is around 85oc.The total
mass comes out is 217.16 MTPH which goes to dryer for the drying process and
2.97 MTPH fames of NH3, H2O and other particies goes to the fame scrubber.
39
2) Drying Section :
Capacity : 298 MTPH
RPM
: 4
Inclination : 1/16 of its lenth
Size : 3600mm Dia x 2450 mm long

Material : steel with special
Motor : 350 hp x 2
Dry is used to remove moisture from the product. The Drying of granules comes
from the Granulator having 3% moisture is accomplished in the air fire rotary, cocurrent hot gas dryer internally fitted with lifters and baffles. Supply the feed from
the Granulator is 217.16 MTPH and get out the product of mass 208.89 MTPH
which is feed for the screen 0.16 MTPH ammonia goes to scrubber.
The total mass comes out from the dryer goes to grizzly and divided in to two
parts. Oversize goes to the lump crusher and undersize goes to primary elevator,
mass from the lump crusher also goes to the primary elevator and from the elevator
mass take to the screen dry feeder for the separation of product.
3) Screening Section :
Primary elevator elevates the material discharge from the dry and feed to the
Screen Drag Feeder (SDF). From SDF mass is distributed in three different
screens. Here provided screens of 1 mm at bottom and 4 mm screen above it.
Screen are made up of stainless steel fiber and attached with 4 motors, which
provide vibrations to the screen so Screening is done.
These three Screens separate the product in to three part.
I ) Oversize
II ) Undersize and III ) Product Size
Oversize material retains on 4mm screen and undersize material retain below 1mm
screen. The product retains between 4mm and 1mm. The Oversize particies are
taken to the pulverizer to the fine product conveyor. The undersize particies are
also taken to the fine product conveyor.
From the fine product conveyor fines goes to secondary elevator. From secondary
elevator, the mass goes to the granulators as a recycle material.
40
4) Cooler Section :
From the screen, the product goes to cooler through conveyor. Product cooler is
used to cool the product. The cooling is done by the ambient air.
Capacity : 40 MTPH
Material : steel
Inclination : 1/32 of its lenth
Size : 2400mm Dia x 12192 mm long

Power : 50 hp x 2
Product from the product cooler discharged from the other and heaving
temperature 50oc and iniet temperature of product is around 80oc. Here the
product feed to the cooler is 30.56MTPH and because of removal of dust from the
cooler, the outlet product is 0.56 MTPH. From the cooler dust goes to cooler
cyclone where heavy material goes to the find conveyor and light weight dust goes
to the cooler scrubber.
Dust Cyclone
Specification
Capacity : 51000 ACM
Material : Mid Steel
Efficiency
: 70 to 75 %
Pressure Drop : 75 to 100 MMWC
5) Conveying Section :
In this section the fine product and pulverized product goes through fine conveyor.
Dust from the fine conveyor, pulverizer and SDF goes to the dust cyclone. Here all
cyclones works on the principle of centrifugal force and momentum. It controls the
pollution and minimizes the loss of material.
Dust Cyclone
Specification
Capacity : 42500 ACM
Material : Steel
Efficiency
: 70 to 75 %
Pressure Drop : 75 to 100 MMWC
6) Product Handling Section :

Product discharged from the product cooler is conveyed to the product storage of
bagging plant via product conveyor.
41
B) WET SECTION
The wet section is divided into two parts.
1) Neutralization
2) Scrubbing
1) Neutralization :
Capacity : 80MT by Volume
Diameter : 3.35 M
Height : 6.10 M
Speed : 70 rpm
Material : 316 SS
Temperature : 122 oc
The reaction is carried out in continue stirred tank prenutralization made of S.S.
316 L, which is equipped with four ammonia sparger for the introduction of liquid
ammonia at-33 oc and atmospheric pressure fresh 50-55 LBS P.A. sulphuric acid
and recovered scrubber liquor are metered in P.N. and neutralize with liquid
ammonia. At the time, due to exothermic reaction as neutralization, heat releases
and hence, raises the temperature of the reaction slurry to its boiling point and
large quantity of water is evaporated and vented to the fumes scrubber through an
exhaust duct.
Then the ammonia sulphe-phosphate phosphate slurry contains 8-35 % a solid is to
be pumped to the granulator via floc, recorder controller. Where the granulation of
the slurry with the recycled material takes place. For the production of 30 MTPH
of DAP, 1.99 MTPH of H2O54, 4.09 MTPH of NH3 and 35.04 MTPH of
recovered scrubber liquor are required. The product coming out of it contains 3533 MTPH of slurry, goes to granulator and 5.79 MTPH of fumes goes to Scrubber.
2) Scrubbing Section :
It is main part of wet section. The main purpose of the scrubbing section which
constitutes the major part of wet section are used to scrub efficient fumes dust and
gases to recover fertilizer values they contain. The wet scrubbing system serves to
recover plant nutrients values, mainly micron size product and ammonia and to
remove other pollutants. The main purpose of the scrubbing is to minimize dust
and ammonia losses.
42
The scrubbing section consists of five scrubbers which

constitute the major part of the wet section are used to scrub effluent fumes dust
and gases from its respective
Equipment to recover fertilizer values they contain. These all are venture cyclonic
type primary scrubber which handle the ammonia and dust bearing fumes and
gases evolved from the reaction and granulation system and also from the drying
system and dust system. The scrubbing medium for both tail gas and cooler
scrubber is fresh water. All other scrubber use recalculated P.A. as scrubbing
medium.
Fresh P.A. is introduced in to the primary scrubber system and partially neutralized
scrubber solution called scrubber liquate in pumped from this scrubber system to
the reaction section.
Production Process Layout
In put
PHOSPERIC
ACID
AMMONIA
SULPHURIC
ACID
BENTONITE
C a pa c it y &
pr o c es s
A/B trains:
Di-Ammonium
Phosphate
Cap: 326000MTPY
Process: TVA
C train:
Di-Ammonium
Phosphate
Cap: 396000MTPY
Process: PR-NCRO
F in a l
pr o duc t
DAP
DAP
CHART 6: Production Process Layout

43
BAGGING PLANT
Whenever the finished product is prepared the finished product is going to Bagging
Plant for the bagging product. The finished product of A and B plant is going to
Bagging Plant through the belt conveyor M2001 - M2004 - M2007 to bagging
plant. Whenever Bagging Plant is under rest or any down stream equipment is
under maintenance or all the selected bunkers are full. At that time, the product is
going to Silo through the belt Conveyor M2001 - M2002 to Silo. The storage
capacity of Silo is 24,000 MT. Whenever the requirement of product is more for
the bagging. The Reclaimer Equipment is started to feed belt conveyor M2003.
The product at Silo is going to Bagging Plant through the Belt Conveyor M2003 M2004 - M2007 to bagging plant.
When the finished product of C plant is prepared. The finished product is going
to Bagging Plant through the Belt Conveyor M2011X - M2012X - M2004 M2007 to Bagging Plant. Whenever Bagging Plant is under rest or any down
stream equipment is under maintenance or all the selected bunkers are full. At that
time, Product is going to Silo through the belt conveyor M2011X - M2012X M2002 to Silo. Whenever the requirement of product is more for the bagging. The
Reclaimer Equipment is started to feed belt conveyor M2003. The product storage
at Silo is going to Bagging Plant through the Belt Conveyor M2003 - M2004 M2007 to bagging plant.
The capacity of Belt Conveyor M2001 - M2002 - M2003 - M2011X - M2012X is
150 MT. and the capacity of Belt Conveyor M2004 - M2007 is 330 MT.
When the finished product is reached to bagging plant the belt conveyor M2008A
or M2008B started to feed bunker. There are 8 number of Bunker each having
capacity of 25MT. It is called a Bunker Filling System. As per customers demand
preset weight is kept 50 kg. but as not a single machine in the world can give 100
% perfect result, considering this concept 0.03 kg overfill weight has been
provided to make target weight 50.03 kg., so that over and under tolerance limit
can be provided as shown in the printed chart. Now we have to decide only fine
feed, proportionately full feed will be decided itself.
Target weight
50.03 kg
Fine feed
50.00 kg
44
WEIGHING MACHINE
Figure 22: Weighing Machine
When weighing machine is run from the panel, feed gate will be open 100% that is
full feed. After completion of full feed, feed gate will be closed approx 90% and it
will be converted into fine feed. After completion of fine feed if weight of the DAP
in the weighing bucket is within the tolerance limit, no error will be displayed in
the module and when ever feeler will hold the bag product will be discharged into
the bag and bag will be released it self after completion of bag released time.
45
But if weight of DAP in the weighing bucket is out of tolerance limit, the error will
be displayed considering the under/over weight and cycle will not go ahead until
the alarm is acknowledged.
Let us see in brief packing of G.S.F.C.s Fertilizer

White HDPE bag.
Black printing.
Symbol of G.S.F.C. :
Branch name.
Nutrient contents: 18% Nitrogen.
46% Phospher.
Gross weight: 50.150 kilograms.
Weight at the time of packing: 50 kilograms.
Name of the company: G.S.F.C. limited.
Address: Registered Office
Fertilizernagar 391 150
Dist. Baroda - Gujarat. India
Empty bag weight: 1.20 gram (HDPE)
Printing color: Black
From/Shape: Granual (solid)
Size of bag: 3424 (HDPE)
46
STORAGE DEPARTMENT:
When bags are packed with the material, after that it will send to the storage
department.
Following chart shows the channel of storing the DAP product.
WARE HOUSE
BUFFER GODOWN
DEPOTS
OUTLETS
CHART 7: Storage Department

DISPATCH DEPARTMENT
After the completion of process the products DAP is dispatched to the
various regions of the country as per the department.
47
THE FINISHED PRODUCTS

DAP
(DIA AMMONIUM PHOSPHATE)
APS- 20:20:0
NPK - 12:32:16
NPK - 10:26:26
Figure 23: The Finished Product

Source:
www.gsfclimited.com/fertilizerproduct
48
QUALITY CONTROL
Quality Control assumes the greatest importance in a mixed fertilizer industry. The
product composition has to be ensured as the products are sold on the basis of
guaranteed nutrient content as per the norms laid down by F.C.O. over formulation
or underproductions of the products due to lack of quality control may lead to loss
to the manufacturer in the former case and depriving the consumer his moneys
worths in the later use. Quality of the raw materials is of prime importance for the
production of premium product.
A
comprehensive
Quality
Control
Laboratory has been established for
Gujarat State Fertilizers & Chemical Ltd.
Sikka Unit fertilizer plant. This laboratory
is
functioning with excellent result and has
helped in the production of premium
products by efficient plant control. This has
been
made possible by constant monitoring of the
quality of raw materials,
Figure 24: Quality Control Laboratory
process parameters, product, utilities etc. the laboratory also carried out an
extensive pollution control monitoring the environment free of pollutants. In
addition to this, packing material for fertilizer is also tested in the laboratory.
It is extremely necessary to follow standardized procedures for the accuracy and
reproducibility of the result. A all-in-one kind of a compilation is necessary for
covering a wide variety of areas being served by the laboratory and hence the
prime objective of compiling this manual is to provide an on hand source for
detailed analytical procedures presently being followed in the laboratory. It will
also serve as a text book for the newly recruited fresh graduates. Who are entering
into a new world of industry environment.
Out of many available analytical techniques in the literature, only a few presently
connected to the laboratory have been elaborated here. An attempt has been made
to select most precise, reliable and sensible and still purpose. It incorporates
analytical methods for the testing of raw material, in process material and finished
product. It also includes approved methods for the pollution control monitoring
activities as well as ISO Specified procedure for the inspection of HDPE bags.
49
The Functions of Quality Control Laboratory has follows:

1) Raw material Analysis
2) Raw packing material Analysis
3) Finished product Analysis
4) Water Analysis
5) Pollution Control Analysis
1) Raw Material Analysis:
When the raw material comes to the plant the sample of it take and send to the
quality control department for the testing of raw material. Phosphoric acid,
Ammonia, Sulfuric Acid, Bentonite etc. are testing in QC laboratory. Under
Phosphoric Acid how much P2O5, Specific Gravity of it, sulphate, fluoride,
suspended solids and chloride are testing. Also other raw material Ammonia,
Sulfuric Acid and Bentonite are testing.
2) Raw Packing Material Analysis:
When the raw packing bags come to plant the sample of it takes and sends to the
Quality Control Laboratory for the testing of raw packing material. In these
analyses the sampling analysis, Physical analysis of bags and Distractive Analysis
is done. When raw packing bags comes to plant the sampling of it taken out of 100
bundles of bags 8 bundles are choose and out of 8 bundles four bags takes from
each. Under this analysis taken four bundles from each are testing like its size and
capacity of bags through the Titence Testing Machine.
3) Finished product Analysis:
Whenever the Finished Product is prepared sample of it taken from DAP plant and
send to Quality Control Laboratory for the testing of finished good. Under these
analysis the analyze finished product in which % of P2O5, % of Nitrozan, % of
H2O and Screen Analysis of DAP. The % P2O5 is analyzed in the Spectophoto
Meter. The % of Nitrozon analyzed in the Nirozon Distillation Assemly and in
screen analysis the size of product is testing the product must not less than 90% or
not more than 95% of its size.
50
4) Water Analysis:
In the water analysis the raw water of dams, water of RO Plant, water of Ponds,
water which for plan and water of Colony are analysis. Under this analysis the PH
of water, Conductivity, total hardness, total phosphed and Alkalinity of water are
analyzed. The PH of water analyzed in PH meter. The Conductivity analyzed in
conductivity meter.
5) Pollution Control Analysis :
Now in the Gujarat State Fertilizers & Chemicals Ltd. Sikka Unit the Pollution
Control Analysis is now done by the Pollution Control Agency.
Instrument Used In Quality Control Laboratory:

1) Spectrophotometer
2) Karl Fischer Titrator
3) Balance Machine
4) Atomic absorption Spectrophotometer
5) Ph Meter
6) Conductivity Meter
7) Nitrozan Distillation Assemly
8) Oven Hot Air
9) Furnace Muffle
10) Titence Testing Machine
51
QUALITY POLICY
Figure 25: Quality Policy

Source: www.gsfclimited.com/qpofgsfc
52
53
INTRODUCTION OF PERSONNEL
DEPARTMENT
Personnel management may be defined as a set of polices, practices and
programmes designed to maximise both personal and organizational goals. It is the
process of binding people and organizations together so that the objectives of each
are achieved.
According to Edwin B. Flippo, Personnel management is The
planning, organizing, directing, and controlling of the procurement,
development, compensation, integration, maintenance and reproduction of
human resources to the end that individual, organizational and societal
objectives are accomplished .
Personnel management is an integral but distinctive part of management concern
with people at work and their relation ship within the enterprise seeking to bring
together in to effective organization the man and women who staff the enterprises,
enabling each to make is own best contribution its success both as an individuals
and as a member of working group.
Personnel & Administration department at Gujarat State Fertilizer and
Chemicals Ltd. is concerned with managing the functions of personals like
recruitment, selection, wages and Salary administration, training and promotion
etc. IT is also concerned with maintenance of industrial health and safety,
employee discipline. This department helps the management in securing, utilizing
and developing appropriate manpower to achieve the organizational objectives.
Gujarat State Fertilizer and Chemicals Ltd. continued to have cordial and
harmonious relations with its employees. The Company recognizes and sincerely
appreciates the hard work put in by all the employees of the Company. Presently
316 employees are on the roll of the in Sikka Unit.
54
ORGANIZATION STRUCTER OF PERSONNEL

DEPARTMENT
Personnel department has a very important role in any organization. Organization
is a group of people working together co-operatively under authority towards
achieving goals and objectives that mutually benefit the participants.
DEPARTMENTAL HEAD
NAME
DESIGNATION
Mr. H. H. Dave
Dy. General Manager

( MM & HRM )
CHART 8: Organization Structure of Personnel Department

Source: personnel report of gsfc sikka unit
55
MANPOWER PLANNING
Manpower planning may be defined as a strategy
for the procurement, development, allocation and
utilization of an enterprises human resources.
Manpower planning facilitates the capitalization
of the companys objectives by providing the
right type and right number of personnel.
Manpower planning is like material planning
that estimate the type and annuity of the
materials and supplies needed to facilitate the
manufacturing activities of the organization.
Manpower planning is variously called Human
resource planning or employment planning.
Figure 26: Manpower Planning
Organizational
Objective &
Policies
HR Needs Forecast
HR Supply Forecast
HR Programming
HRP Implementation
Control & Evaluation of

Programme
Surplus
Restricted Hiring
Reduced Hours etc.
Shortage
Recruitment &
Selection
CHART 9: MANPOWER PLANNING
In GUJARAT STATE FERTILIZER AND CHEMICALS LTD. Human

resource planning is done as per the requirement.
56
RECRUITMENT
After the required number of and kind of
personnel resources are determined, the
next step in the procurement function is
to locate the sources where from the
required personnel resources can be
available and to attract and them towards
the organization.
Figure 27: Recruitment
According to J.S. Lord Recruitment is a form of competing. Just as

corporations compete to develop, manufacture, and market the best product or
service, so they must also compete to identify, attract, and hire the most qualified
people. Recruitment is a business, and it is a big business.
In GUJARAT STATE FERTILIZER AND CHEMICALS LTD. Promotional
Interview, Tests, Trade Test of employees will be annually conducted by P&A
department in accordance to the policy.
At GSFC Sikka unit the seniors choose their juniors from different sources as
described as follows:
1. Apprentice
2. Officers
For Apprentice,
(i) Act 1961 (State Govt.)
This is handled by Apprentice advisor, Jamnagar.
(ii)GEAs (Central Govt.)
GEA means Graduate Engineer Apprenticeship, which
is handled by H.O. Vadodara.
Generally GEA has 2 branches:
Book keeping & Account department
Purchase Staff & Store department.
57
Recruitment of Apprentices as per Act, their deployment in concerned department

and assurance of certificate on completion of the apprenticeship.
Notification is done in Govt. employment exchange by Gujarat State Fertilizer
And Chemicals Ltd. about vacancies in the organisation.
Generally Gujarat State Fertilizer And Chemicals Ltd. gives advertisement in
newspaper etc.
Training period for the candidate under Apprenticeship Act is 1st year.
Conditions for the Candidate :
1. The candidate should get min. 65% in ITI under Act 1961.
2. The candidate should get min. 55% for GEA.
3. The Co. gives 5 % grace for employees son & daughter.
Conditions for Officers :
1. They must pass written test.
2. Candidate must pass interview like viva.
3. Candidate must pass the medical test also.
The Company believes in the slogan the healthy body, the healthy mind. The
officer must be fit & from the brain & also in body means their mental, physical
healthy should be well.
58
SELECTION
After getting the right sources for recruiting the right personnel in the organization
the next main important step of the personnel manager is to decide about the right
kind of selection procedure to ensure that the right kind of personnel is selected for
the right place. Selection, as the name implies, involves picking for hire a sub-set
of workers from the total set of workers who have applied for the job. Selection is
done comparing the requirements of job with the applicants qualifications.
SELECTION PROCESS
Preliminary Interview
Application From
Selection Test
Rej
ecte
d
App
licat
ion
Selection Interview
Physical Examination
References Checks
Final Approval
Placement
CHART 10: Selection Process

59
Steps of Selection Procedure In GSFC :

1. The Concerned Senior Officer receives all the application.
2. And Screening of the application.
3. Then GSFC call all the candidates who have come forward
after the screening of all the application.
4. Then interviews are taken.
5. Selection from the interview is done on the basis of nature of
the past.
6. Merit list is made on the basis of the Selection is made.
7. Medical examination is taken if required.
8. Final selection is made on the basis of merit list & medical
examination.
9. Placement & Training is given if required.
60
INDUCTION AND PLACEMENT

Induction or placement is concerned with introducing a
new employee to the organisation, its rules & regulation & the people with them he
will interact in doing job.
Good Induction programme has 3 elements:
1. Introductory Information.
2. On the job information.
3. Follow-Up interview.
In the Gujarat State Fertilizer and Chemicals Ltd. Sikka
Unit, Introduction process is done when a final person is selected as required
employee. During his training period, employee passes from the induction
programme. He gets introductory information when he starts his duty as trainee. If
he is appointed on any higher level post, he is given information from his
superiors. Then according to his job, duties are assigned to him to understand
better his work & his past. He also undertook Follow-Up interviews with
superiors persons & gets more alert.
61
TRAINING AND DEVLOPMENT

Training is the process of increasing the
knowledge and skill of worker or employee for
during particular job. It is an organized procedure
by which people learn specific knowledge and
skill for a particular purpose. The purpose of
training is basically to bridge the gap between job
requirements and present of competence of an
employee. After selecting a right man for job,
there comes a next stage is Training. Training is
the
corner
stone
of
sound
personnel
administration.
Figure 28: Training and Development
According to FLIPPO, Training is the act of increase the
knowledge & skill of an employee for doing a particular job.
There are two broad types of training available: On-the-Job and Off-the-Job
techniques. Individual circumstances and the "who," "what" and "why" of your
training programme.
T & D AT GSFC
INHOUSE
TRAINING
OFFHOUSE
TRAINING
CHART NO 11: Training and Development

In Gujarat State Fertilizer and Chemicals Ltd. Employees of the company are
provided In - House Training and Off House Training is to be provided and
also Counselling Method is to be adopted.
62
In Gujarat State Fertilizer and Chemicals Ltd. Employees sent to the Baroda
(H.O.) training centre is there. In a year 2 to 3 times training programme is
arranged. And also employees sent to the Rajkot where training centre is there.
Generally, Gujarat State Fertilizer and Chemicals Ltd. provides training for
Computer education, Recent Managerial trends, Fire trends & Safety matters. Its
provides training for interpersonal relationship also.
DEVELOPMENT
Executive or management development is a continuous process of learning &
growth designed to bring behavioural change among the executive. A large variety
of methods of managements development have come into prominence these days.
Gujarat State Fertilizer and Chemicals Ltd. also gives more importance towards
the development of the existing human resource in the organization.
Generally Gujarat State Fertilizer and Chemicals Ltd. (Sikka Unit) does 2
things to develop the employees.
1. Job Rotation
2. Special Project
Job Rotation is undertaken to broaden the background of the trainee in various
positions. The trainee is periodically rotated from 1 job to another job. So that
he requires a general background of different jobs.
Special projects are handled the employees with a view of encouraging them to
take challenges & work more efficiently & effectively.
Under this method a trainee may be assigned a project that is closely related to
the objective of his department. Generally, this method is used for higher level
posts.
63
PROMOTION AND TRANSFER POLICY

PROMOTION
Promotion refers to advancement of an employee
to a higher post carrying greater responsibility,
higher status and better salary. It is upward
movement of an employee in the organizations
hierarchy, to another job commanding greater
authority, higher status and better working
conditions. When an employee is assigned a
higher level job with more salary and powers, he
is said to be promoted. Promotion may be
temporary or permanent, depending upon needs
of organization.
Figure 29: Promotion
PROMOTION POLICY:
Following promotion / up gradation policy is to be adopted for employees of
workmen category of Gujarat State Fertilizer and Chemicals Ltd. Sikka Unit
under Industrial dispute act, 1947.
I.
Promotion for Employees up to Grade S 9:

This promotion policy is further divided in following 2 groups:
A. Merit promotion / Vacancy oriented promotion.

(1) Job knowledge, without / Trade test
(Merit factor): 60 marks.
(2) Performance appraisal report
(Merit factor): 18 + *2 marks
POINTS
Excellent
Good
Satisfactory
Unsatisfactory
WEIGHTAGE
2.0
1.5
1.0
1.5
64
(3) Service record: (Negative Factor) : 10 marks

(4) Seniority : 20 marks
(5) Eligibility Norms : All the employees who have put in minimum 3 years
service in one grade, will be eligible for merit promotion on thehigher
grade in vailable vacancies.
(6) Cut-Off time: For considering the eligibility period the cut off time will
be kept 31st July every year.
(7) Promotion avenues and growth opportunities : If existing employees
for the higher grades then external candidate should be given chanceso
that the companies work does not suffer.
II. Time Bound Promotion to Grade 10
The employees will not be promoted as regards punishment clause like late
coming, absenteeism, memo deduction and punishment. Stoppage of
increments, suspension, degradation and indiscipline.
TRANSFER
A Transfer refers to a horizontal movement of an employee from one job to
another, one unit to another, one shift to another in the same organization without
any significant change in status and pay. Transfer may be initiated either by the
company or the employee. A company may initiate a transfer to place employee in
position where they are likely to be more effective. And the employee may initiate
transfer to locations where they are likely to get greater satisfaction.
Transfer means shifting of employee from one department to another
department or unit carrying the present responsibilities, facilities, status and
pay.
TRANSFER POLICY:
In Gujarat State Fertilizer and Chemicals Ltd. Sikka Unit the transfer is done in
the following cases:
(1) If manpower is in excess on any department or unit.
(2) Transfer is done as penalty or punishment if the employee carries out
Unsatisfactory work.
(3) Transfer on the basis of requirement in any department or unit.
65
PERFORMANCE APPRAISAL
Performance appraisal is the process of
assessing the performance and progress
of an employee or of a group of
employee on a given job and his
potential for future development.
Appraisal is the evaluation of worth,
quality, or merit. In the organizational
context, Performance appraisal is a
systematic
evaluation
of
Figure
30:
performance
appraisal
personnel by superiors or other familiar with their Performance. Performance
appraisal is also described as merit rating in which one individual is ranked as
better or worse in comparison to other.
In Gujarat State Fertilizer and Chemicals Ltd. Sikka Unit generally the system
is parted into 2 groups:
For the Staff Members:
1. Job Performance
2. Job Knowledge
3. Dependability
4. Initiative
5. General Disposition
6. Creative Ability
7. Safety Habits.
For the Officer :
1. Job Knowledge
2. Decision Making Ability
3. Dealing & Relative with Initiative
4. Organization Ability
5. Leadership
6. Consciousness
7. Stamina
Moreover, the company gives long service award to the employees who work for
the co. more than 16 year
66
INDUSTRIAL RELATION
Industrial relation has become one of the most
delicate and complex problems of modern
industrial society. Industrial process is
impossible without labour management
cooperation and industrial harmony. Industrial
relation means the relationships between
employers,
employee,
management,
government and other industries.
Good
relations between workers and management
are only one factor which can establish peace
in any industrial organization.
Figure 31: Industrial Relation
According to Dale Yoder the term industrial relation refers to the whole field of
relationships among people, human relationships that exist because of the
necessary collaboration of men and women in the employment process of
modern industry.
There several significant of industrial relation. Some are as follows.
To help in the economic progress of the country.
To help government in making laws forbidding unfair practices of unions
and employers
To boost the discipline and the morale of the employee.
Gujarat State Fertilizers and Chemicals Ltd. has created a good relationship
between the management and its employees. It also appreciates their workers to
improve their morale. Thus, Gujarat State Fertilizers and Chemicals Ltd.
maintains best industrial relation and avoids all Possibilities of disputes by
satisfying them in all way.
67
TRADE UNION
Trade unions are an essential
feature of industry in every
country. Trade unions emerged
as a reaction to the factory
system and capitalistic society.
In the early stage of
industrialization. Working class
in the absence of legal
protection felt exploited at the
hands of employers.
Figure 32: Trade Unions
Under the Trade Unions Act, 1926, A trade unions is any combination of
persons, whether temporary or permanent, formed primarily for the purpose of
regulating the relation between workmen and employees, or between workmen
and workmen, between employers and employers, or for imposing restrictive
condition on the conduct of any trade or business, and includes the federation of
two or more trade unions.
In Gujarat State Fertilizers and Chemicals Ltd. Trade Union is registered in
July 1996 and the registered no. is G4419. A very good relation exists among
management and employees. Trade Union is handled by Senior Manager.
OBJECTIVES & TERMS OF SETTLEMENT:
To create harmonious & lasting industrial relations through collective
bargaining.
To strive for max. Performance efficiency & producing through efficient,
smooth & uninterrupted working of the plant & to promote all possible
economy in its functioning.
To establish equitable standards of payment & other conditions of services.
To strive for max. Utilization of existing manpower to attain higher
productivity per unit of manpower.
To promote the stability & prosperity of the co. to the benefit of those who
are contributing towards the development of GSFC Ltd.
APPLICABILITY OF SETTLEMENT:
68
The Terms and Conditions of this settlement shall be

applicable to the permanent employee, If Gujarat State Fertilizers and
Chemicals Ltd. Sikka Unit working in workmen category.
69
GRIEVANCE HANDLING SYSTEM

Grievance means any real or imaginary feeling of dissatisfaction and injustice
which an employee has about his employment relationship. According to Dale
Beach grievance is any dissatisfaction or feeling of injustice in connection with
ones employment situation that is brought to the attention of management.
Figure 33: Grievance Handling System
In the words of Michael Jucious, A grievance is any discontent or

dissatisfaction, whether expressed or not, whether valid or not, arising out of
anything connected with the company that an employee thinks, believes or even
feels, is unfair, unjust or inequitable.
The relationship between employees and management is very sound. In Gujarat

State Fertilizers and Chemicals Ltd. the grievances are handled by the superior
officer or head of the department. Usually it is settled by the mutual understanding.
But mass grievances are handled by the management and trade union.
70
In Gujarat State Fertilizers and Chemicals Ltd. Sikka unit there are rare cases
of grievances. The Sikka unit used to following channel for handling grievances.
ORDINARY
GRIEVANCE
MASS
GRIEVANCE
SUPERVISOR
REPRASANTATIO
N WORKING
H.O.D.
COMMITEE
CHIEF
MANAGER
DISCUTION
H.O.D
MD
B.O.D
&
DECISION
DECISION
CHART 12: Grievance Handling System

71
WAGES AND SALARY ADMINISTRATION

Wages and salary administration to the
establishment and implication of sound Polices and
practices of employee compensation. It includes
such areas as job evaluation, severs of wage and
salaries, analysis or relevant organization problem
development and maintenance of wage structure,
establishing rules of administrating was wages
payments, incentives, profit sharing wage charges.
Figure 34: Wages and Salary
PAY SCALE OF STAFF AT GSFC SIKKA UNIT TO EMPLOYEES

SALARY ACCORDING TO GRADE
GRADE
PAY SCALE OF STAFF MEMBERS SIKKA UNIT
S 10
7880
330
11180
400
19180
S9
6960
260
9560
330
16160
S8
6225
190
8125
260
13325
S7
5445
145
6895
190
10695
S6
4670
125
5920
145
8820
S5
3890
100
4890
125
7390
S4
3500
75
4250
100
6250
S3
2920
70
3620
75
5120
S2
2330
55
2880
70
4280
S1
1630
40
2030
55
3130
PAY SCALE OF OFFICERS AT GSFC SIKKA UNIT TO EMPLOYEES
SALARY ACCORDING TO GRADE
GRADE
PAY SCALE OF OFFICERS SIKKA UNIT
O6
21410
O5
18620
O4
15820
O3
13500
O2
11170
O1A
9870
O1
9310
O1B
8560
TABLE 4 : SALARY STRUCTURE
1000
880
785
625
490
490
450
405
41410
37100
32305
28500
23910
22600
21460
20305
72
EMPLOYEE BENEFITS AND SERVICES

Rapid industrialization and urbanization have made employees dependent on
capitalists. Inflation has made their lot poor and they find it difficult to maintain
their stander of life. In such a situation employee benefits facilities enable workers
to live a richer and more satisfactory life.
According to Arthur James Todd Labour benefit means anything done for
the comfort and improvement, intellectual or social, of the employees over and
above the wages paid which is not necessity of the industry.
COMPANYS WELFARE PRACTICES:
Gujarat State Fertilizers and Chemicals Ltd. believes that employees are
the most valuable asset of the Company.
Good Working conditions to the employees.
Education & training to companys employees.
GSFC provides good amenities to its employees like
Remunerative salary.
Perks.
Provident fund schemes.
LTC.
Medical facility.
Long Service Award.
Uniform.
Loans for various purposes.
Promotions.
Awards and Appreciation etc.
73
GSFC has got modern township with more than

192 Quarters at G.S.F.C Sikka Unit.
Medical center.
Swimming Pool.
Gymnasium.
Lush Green Gardens
Sports.
Open Air Theatre.
Variety of entertainment programmes / Film shows are organized at regular
intervals.
GSFC is having full fledged & well equipped school with Gujarati and
English medium.
GSFC organizes employee growth and welfare programmes for achieving
higher skill & efficiency through various Trainings & seminars.
Figure 35: Employee Welfare Facility m
74
TOWNSHIP FACILITIES TO THE EMPLOYEES:

GSFC SIKKA UNIT (Shopping, Quarter) :
GSFC(Sikka Unit) Township is equipped with Shopping
Centre to provide basic needs of residents of Township & surrounding area. It has
got a small cafeteria also. GSFC (Sikka Unit) Township is having various
(category wise) quarters with adequate facilities like water, light, house- keeping &
security arrangements.
GSFC(Sikka Unit) School
Gujarati Medium school is available for the employees children till 10th std.
QUARTER FACILITY TO EMPLOYEES:
Quarter
Free Electricity Units
House Rent (P.M.)
(P.M.)
A
75
34
B
110
51
C
130
88
D
160
130
After above free Units 50 paisa per unit to be recovered.
Guest House, Swimming Pool

Guest House & Swimming pool facilities are available to cater to the needs
of G.S.F.C. visitors.
Gymnasium
To keep physical fitness of employees, Gymnasium with modern facilities
is available.
Open Air Theatre
Various entertainment Programmes including movies are displayed at
regular intervals for recreation of residents of Township.
75
Festival Celebrations
Festival committee is taking lead role in celebration of all National &
religious festivals in Township to cheer up atmosphere.
Cultural Programmes
Festival committee is organizing twice a month cultural Programmes like
Music, Drama, Dayaro and Dances to provide entertainment to the
employees with families after office hours.
Celebration of Independence Day & Republic Day
Independence Day & Republic Day is celebrated regularly with Flag
Hosting followed by cultural programmed by School children.
Figure 36: Employee Welfare Facility m
76
ALLOWANCES TO EMPLOYEES :
MANAGEMENT HAS DECIDED TO PAY FOLLOWING ALLOWANCES TO
EMPLOYEES W.E.F FROM 01/11/2009 TO ALL THE ELIGIBLE OFFICERS/
SUPERVISORS OF SIKKA UNIT:
TRAVELLING /HAUTLING ALLOWANCE:

GRADE
HAUTLTING
LODGING
BOARDING
S 10, 9 ,8
170
625
180
S 7,6
110
415
145
S 1, 2 ,3 ,4, 5
85
195
145
THE PAYMENT WILL BE GIVEN ALONG WITH THE SALARY.
BENEFIT TO EMPLOYEES:
VEHICLE LOANS TO EMPLOYEES:
VEHICAL
TYPE
Motor Cycle
Scooter
Moped
Cycle
INTEREST
INSTALLMENTS
6%
6%
6%
6%
150
150
150
50
AMOUNT
500000 /35000 /25000 /2000 -
77
OTHER FACILITIES TO EMPLOYEES:
INTEREST
Marriage
( Loan)
Natural
Calamities
Festival
Food Grains
Education
House Loan
INSTALLMENTS
AMOUNT
50
7 Months Salary +
DA
( Max. 1 Lack)
Non Refundable
8000 /-
10
10
2500 /5000 /1,00,000 /1,00,000 /-
6%
Interest
Free
7%
6.25 %
MEDICAL REIMBURSEMENT FACILITY TO EMPLOYEES

(P.A.):
COLONY
OUTSIDE
COLONY
Basic UPTO 7434
4530 /-
4660 /-
7435 AND Above
4650 /-
4800 /-
STAFF
Long term benefit of medical facility for GSFC employees is

90 % free.
A Govt. Hospital bill is totally free.
Pvt. Hospital bills are free upto rs. 15000. & above Rs.15000 ,
it is taxable.
LEAVES PROVIDED TO EMPLOYEES:
LEAVES
Casual
Leave
14
Ordinary
Leave
33
Medical
Leave
15
Public
Holidays
14
78
LOANS AND ADVANCES:

OYOH Bulk
OYOH
Anywhere in
India
LAONS &
ADVANCES
10,00,000
7,50,000
OYOH Addl.
Renovation
2,50, 000
AWARDS TO EMPLOYEES:
10 YEARS
20 YEARS
LONG
SERVICE
AWARD
WATCH
300 GM. Silver
IF RETIRE
28 YEARS
29 YEARS
30 YEARS
RETIREMENT AGE :
550 GM. Silver

550 GM. Silver
550 . Silver
60 Years
PROVIDENT FUND:
Provident-Fund is a special kind of fund which is compulsory
for every medium and large scale companies to maintain according to Act of
1972. Provident Fund is deducted at a certain rate from employees basic
salary, as this scheme is conducted for welfare of employees. Employees can
get a loan on the basis of provident-fund a/c to Act 1972.
Provident Fund is on Basic D.A. Now, P.F. is 12%. Company
also gives Additional 12 %. So, total P.F. is 24 % for all employees of
Gujarat State Fertilizers and Chemicals ltd. Sikka Unit.
79
PERSONNEL RECORD
They contain information on job analysis, evaluation, description, training and
development, transfer, promotion, dismissals, wage, salaries and a lot of other
activities in which personnel are involved. They are generally prepared for long
term use. By the term records is meant the preservation of information in files and
documents.
The maintenance of personnel records containing all the information regarding
employees is very efficient so that these records can be used in future to remove
the grievances of the employees.
At Gujarat State Fertilizers and Chemicals ltd. Sikka Unit. Personnel
records are maintained such as increment registers, retirement and leave register.
The firm also keeps computerized and a systematic record about workers which
includes the following information.
Full name
Date of birth
No. of dependant
Mother tongue
Education qualification in case of staff
Previous important records
Date of appointments
The personnel records help to analyses and interpret every employee
individually and are helpful to remove the grievances of the employees in future.
80
CORPORATE SOCIAL RESPONSIBILITY (CSR)

According to WORLD BANK GROUP CSR Practice,
Corporate Social Responsibility is the commitment of business to contribute to
sustainable economic development by working with employees, their families;
the local community & society at large improve their lives in ways that are good
for business and development.
Company Practices :~
As Socially Responsible Corporate, Gujarat State Fertilizers and Chemicals ltd.
undertakes various programmes for the socially under-privileged:
Providing various services to nearby villages like:
Employment.
Free drinking water.
Education by running a higher secondary school.
Development of infrastructure like roads, drainage system etc.
Educating the young farmers about the developers in the agriculture field.
Providing training at the farm to the young farmers.
Extending soil and water testing facility for both portable and irrigation
water.
Publishing literature like Krishi Jivan for increasing the awareness in field
of agriculture.
At Last
If Every Company Contributes A Small Portion Of Its Time &
Resources Towards The Development Of The Society, It Would Helping
Building A New India Stronger, More Prosperous & Healthier!
THAT WOULD BE TRUE
CORPORATE SOCIAL RESPONSIBILITY
81
SOCIAL RESPONSIBILITY
As a socially responsible Corporate, Gujarat State Fertilizers and
Chemicals ltd. undertake various programmes for the socially under-privileged.
Since located within the vicinity of urban community, various social activities for
urban sector are undertaken.
Health being a vital factor, GSFC conducts various medical camps in
nearby villages like eye check-up camps, blood donation camps, etc.
For providing drinking water, GSFC has build up many overhead tanks
and water connections for nearby villages.
GSFC has put streetlights on village roads and has constructed bus-stand
and other facilities for nearby villages.
GSFC has constructed school & college buildings, donated funds for
library facility to the rural youth & encourage young children for primary
schooling.
GSFC organizes various sports camps to focus on individual talent and
foster greater camaraderie. GSFC also has job facility on sports quota for
upcoming youth talents.
In order to create healthy environment, GSFC educates youth about the
environment and safety measures & cleanliness.
82
83
INTRODUCTION OF MARKETING DEPARTMENT

Marketing is sum total of all business activities which deal with the movement of
goods and services from producers to consumers in order to satisfy their needs.
The required goods and services may include raw materials, semi finished goods,
and finished goods as well as those services that are necessary to keep consumers
using and enjoying them. Marketing in fact is concerned with the satisfaction of
consumers wants and needs through markets at a profit.
According to Fillip Kotler, Marketing is social and managerial process through
which individuals and groups obtain what they need and want through creating
offering and exchanging products of value.
Reaching millions of GSFC to farmer every year is greater adventure. GSFC does
it through rail and road. Just to get close to many farmers as possible. Fertilizers
are distributing through one of the most comprehensive network, in the nation. A
wide network of warehousing facility, more than 300 farm information center com
sales depots in the Gujarat, and public channels and bulk marketer make truly the
GSFC friend.
GSFC goes through the extensive exercises ensure that the right time and right
place that the farmer get the right fertilizer (GSFC urea, GSFC. Ammonia
Soleplate, GSFC DAP). GSFCs high yielding fertilizers and high involvement
services. Its what growing farmer need.
Government of India is regulating the price and distribution area as well as the
quantity. As per Government allocation manufacturer has to sale fertilizer in statedistrict allotted there in. it generally happen that the forecasted demand on which
basis allocation is made by agricultural ministry and Government of India (It also
takes into consideration the cross movement of fertilizer and tries to minimize the
84
lead time) decreases due to draught (which we are realizing

due to successive failure of last several years monsoon in many parts of country).
Moreover, Ministry of Agriculture issues a fresh allocation at each year, Due to

this marketing state may be changed which creates lot of marketing problems.
For Example: In 1985, GSFC was not allowed in Tamilnadu through earlier GSFC
has been selling large quantity. Similarly Urea & DAP allocation was cut out from
Maharashtra state.
In Gujarat state Fertilizer & Chemical Ltd. marketing is done by the Head
Office Vadodara. In the Sikka Unit there is only Logistic Department. The function
of Logistic Department is to supply or Distribution, handling and warehousing. In
GSFC Sikka unit the finished product is Deliver to the end user or sales depots,
co-operative society, Agro center or warehouse etc. which is informed by the head
office vadodara.
THE TERM LOGISTIC AND ITS SCOPE

Logistics is a relatively new word used to describe a very old practice: the
supply, movement, and maintenance of an armed force both in peacetime and
under operational conditions. Most soldiers have an appreciation of the impact
logistics can have on operational readiness. Logistic considerations are generally
built in to battle plans at an early stage for without them the tanks, APCs, artillery
pieces, helicopters, and other aircraft are just numbers on a table of organization
and equipment.
So the term Logistic has been borrowed from the army. The army
used it to refer the supply of ironed, arms and other stores to bottle front from the
base depot in the quickest and safest way. So, logistic can be defined as the art of
distribution and science of transportation, handling, packing and warehousing so
that the farmer receives fertilizer in time at minimum cost at required place.
Fertilizer is produced in large quantity and moved at large quantity in very remote
areas, the logistic department which looks after the transportation, warehousing
and packing of fertilizer can be regarded as heart and soul of fertilizer industry.
LOGISTIC MANAGEMENT:
Logistics management is that part of the supply
chain which plans, implements and controls the efficient, effective forward and
85
reverse flow and storage of goods, services and related

information between the point of origin and the point of consumption in order to
meet customer & legal requirements. A professional working in the field of
logistics management is called a logistician.
STRUCTURE OF LOGISTIC DEPARTMENT
SENIOR MANAGER
[BAGGING & LOGISTIC]
MANAGER
[BAGGING & LOGISTIC]
SENIOR
LOGISTIC
OFFICER
LOGISTIC
OFFICER
CHART 13: Organization Structure of Logistic Department

86
Source: logistic report of gsfc sikka unit
MARKET SEGMENTATION
A marketing segment consists of a group of customer who share a similar set of
needs and wants. Rather than creating the segment, the marketers task is to
identify them and decide which ones to target. Segment marketing offers key
benefit over mass marketing. The company can often better design, price, disclose,
and deliver the product or service and also can fine-tune the marketing program
and activities to better reflect competitors marketing.
Figure 37: Market Segment
Gujarat State Fertilizers & Chemicals Ltd. Produces DAP product which is
used by the farmers for increasing the productivity. Hence, GSfC (S.U.) has
segmented it market. For farmers GSfC has local market. i.e. Gujarat and National
market utter prades, Madhya prades, Punjab, Maharastra, Hariyana and
Rajasthan etc. the product is very popular on its markets. DAP is a basic fertilizer
and it is used for the crops like ground nut, potatoes, onions etc. so it has
segmented its market according to use of the product.
87
In this way market segmentation refers to the various

segments of the market based on he common characteristics of the customers.
PRICING POLICY
Price is the exchange value of the product. Price can
be determined through cost factor, demand and
competition factors. Cost of the production serves as
the floor for the basis of the pricing of the product. It
is the crucial element of marketing mix. On the
other it is simultaneously a strategic element as it is
related to the perception of quality. Without price
there cant be marketing. Price denotes the value of
a product or service expressed in money.
Figure 38: Pricing
In the Gujarat State Fertilizers & Chemicals Ltd. Pricing policy are frame work
or boundary within which pricing decision are taken. Pricing policies are
guidelines to carry out pricing strategy. Pricing policies are must change and adopt
them selves with the changing environment. Gujarat State Fertilizers &
Chemicals Ltd. Produced a fertilizer which is an essential commodity for the
farmer. It is a joint venture company so all the decision is taken by the state
government and the head office at Baroda, On the basis of guidance given by
central government. The price of the product is fixed by the government and it is
revised quarterly, to increase the profit organization has to decrease the cost of the
production. The company can sale its product at lower rate than the fixed price but
it cant sale at higher rate.
The price of DAP product on 50 kg bag Subsidiary are also given on DAP by the
Government of India. The price of DAP product in various states are as follows.
STATE
Gujarat
Maharashtra, Rajasthan,
Karnataka, Chhatisgarth,
Div, Silvasa, Daman
Andhra Pradesh
Hariyana, Punjab,
PRICE (IN RUPEE)

On 50 Kg Bag
521.65
522.37
516.85
517.40
497.50
88
Madhya Pradesh
Utter Pradesh
TABLE 5: Price
527.59
502.70
Source: marketing report of gsfc sikka unit
CHANNEL OF DISTRIBUTION
Channels of Distribution, in the marketing content, is the process of making the
product or services available to the consumer and involves to the end users.
Marketing intermediaries work as a link between producers and users and fill the
gaps created when the direct exchange between the producers and the end users is
not possible or feasible. A manufacturer or supplier may sell or supply the product
to the consumer or may take help of intermediaries to make the same available to
the end user. Channels of distributions are the firms and individuals who help in
transferring the goods from place of manufacturing to place of consumption.
CHART 14: Channel of Distribution

89
GSFC Sikka unit is using following system to distribute its products

1) Co-operative societies
2) Gujarat Agro Industrial Corp.
3) Gujarat Fertilizers Dealers Association
4) Depots
1) Co-operative Societies :60% of total production of DAP is distributed by the co-operative societies
in Gujarat. GUJCOMASOL is main co-operative society dealing with
GSFC and supplies DAP at the most interior part of villages and taluka
places. GAIC and GEDA both together get a share of 20% of total
production of DAP. GAIC have their agro centers and GEDA is a sort of
private distribution network and sells DAP their own retail outlays.
In Gujarat Gujarat State Fertilizers & Chemicals Ltd. does not includes
pure private agencies in their marketing chain as in Gujarat co-operative
sector is very sound other advantages of the co-operative societies are that
they are not profit oriented and are very reliable unlike the private agencies
so there are no chances of black marketing. These societies distribute their
profit to the farmers and these farmers are the original share holder of the
company. Despite of having so many advantages co-operative societies
also have loopholes like they are very slow in their functions and have very
limited no. of outlays and storage capacity which can be very important
factor for company to consider in todays competitive age.
2) Direct Marketing by GSFC:Only 20% of total production of DAP is directly marketed by Gujarat
State Fertilizers & Chemicals Ltd.through various depots opened at
various talukas in Gujarat. Each depot comes under area office, which is
handled by regional office. GSFC has its head office at Baroda where all
90
regional office reports. Almost all the marketing activities

are controlled by head office. In Gujarat there are 18-20 regional offices
and each regional
office has 10-12 area offices and under each area offices, there are depots.
Through these depots DAP products are distributed to the customers.
3) Major Customers of GSFC (Sikka Unit) :

Farmers are the ultimate and only customers of GSFCs DAP
product.
DISTRIBUTION NETWORK
DISTRIBUTION NETWORK
WITHIN
GUJARAT
OUT SIDE
GUJARAT
PRIVATE
DEPARTMENT
CODEPOTS
OPERATIVE
(20%)
SOCIETIES
(60%)
WARE
HOUSE
GUJARAT
AGRO
CENTRE
(20%)
91
CHART 15: Distribution Network

DISTRIBUTION NETWORK OF GSFC IN INDIA
Figure 39: Distribution Network

92
TRANSPORTATION
There are various types of transportation modes available in our country, like,
shipping transport, road transport, railway transport and also the air transport.
Organizations can selects any of the above transportation modes to move their
products from the factory to the stores department and then to the end users.
Figure 40: Transportation
Gujarat State Fertilizers & Chemicals Ltd. sikka unit uses transportation
by rail, road and sea. The road transport uses for brings raw material and delivery
of product in domestic and national market. The rail transportation uses for
delivery of product in domestic and national market. and The sea way uses for
import raw material from foreign country.
Within Gujarat or within 300 km in Gujarat Gujarat State Fertilizers &
Chemicals Ltd. transport its products through road or through trucks. For
transportation through truks, Gujarat State Fertilizers & Chemicals Ltd. issues
tenders. In case of outside Gujarat or more then 300 km, they prefer railway for the
purpose of cost cutting.
93
Gujarat State Fertilizers & Chemicals Ltd. imports raw material (Ammonia,
Sulfuric Acid) through ship from outside India (Tunisia, South Africa etc.).
ADVERTISING
Advertising has becomes an important function of marketing in the competitive
world. It helps to spread the message about the product and thus promote its sale.
Advertising is used for communicating some business information to the present
and prospective customers. Advertisement usually provides information about the
advertising firm, its product, quality of product, place of availability of its product.
There are a number of advertising media of services that the advertiser has to select
carefully the medium that is suited for his product.
Media of Advertising
Media of Advertising
Print Media
Audio Visual
Newspaper
Direct Mail
Magazines
Internet
Yellow Pages
Television
Media
Brochures
CHART 16: Advertisement

94
The Gujarat State Fertilizers & Chemicals Ltd. is uses several way of
Advertisement through Magazines, News Paper, Training Program, and
Demonstration.
1. MAGAZINES:
Since 1968, G.S.F.C. is
publishing
a
monthly
magazine 'Krishi Jivan' in
Gujarati
language
with
distribution / circulation of
61,000 copies which include
35,000 Life members every
month having reading mass of
about 3 lakhs. Recently, we
have also started publishing
'Krishi Jivan' in Hindi
language.
Figure 41: Advertisement
Relevant marketing information, companys news, companys agriculture

products, promotion, transfer, retirement, information of marketing personnel etc.
are included in Field Spotlight. 'Krishi Jivan' disseminating knowledge to farmers
in various activities of agriculture and acting as a link for transfer of technology
from lab to field.
2. NEWSPAPERS:
G.S.F.C. is also advertising of the product is done through news-papers
95
3. TRAINING PROGRAMMES:
G.S.F.C. Company organized 75th farm youth training programmed (platinum

programmed) during the year promoting high agri-tech concepts among the young
farmers.
4. DEMONSTRATIONS:
96
Since village people do not believe directly about the importance of the fertilizers.
So G.S.F.C. arranges the demonstration programmers how the fertilizer works and
its effect. And G.S.F.C. also provide free sample of the product to use on the crop
and after some time when crops are ready they will see the result of farmers.
5. OTHERS:
The G.S.F.C. Sikka Unit also provides agro education, soil testing in free service,
seed bags as sample of 50 Kg bags.
SALES PROMOTION
Sales promotion, a key ingredient in marketing
campaigns, consists of a collection of incentive tools,
mostly short term, designed to stimulate quicker or
greater purchase of particular products or services by
consumer or the trade.
Whereas advertising offers to buy, sales promotion
offers an incentive to buy. Sales promotion includes
tools for consumer promotion ( samples, coupons,
cash refund offers, prices off, premiums, prizes,
patronage reward, free trials, warranties, tie-in
promotions, cross-promotion, POP displays, and
demonstrations); trade promotion like (prices off,
advertising and display allowances, and free goods);
and business and sales-force promotion (trade shows,
conventions, contests for sales reps, and specialty
advertising).
Figure 42: Sales Promotion
In Gujarat State Fertilizer & Chemical Ltd. uses Sales Promotion through
Consumer Promotion like Demonstration, Free sample to farmer etc. GSFC
97
arrange various Demonstration Programs so the farmers are

aware about the fertilizer product and they use these products on crops. GSFC also
gave a free sample of seed bags as sample of 50 k.g.
COMPETITORS
Indian Farmers Fertilizer Cooperative Limited (IFFCO) (Kalol, Kandla)
Rashtriya Chemical and Fertilizer Ltd.(Mumbai).
GNFC [ Gujarat Narmada Valley Fertilizer Co.] (Bharuch).
KRIBHCO [Krishak Bharati Co Operative Ltd. Co.] (Surat).
Fertilizers & Chemicals Travancore Limited.
Godavari Fertilizers & Chemicals Limited.(GFCL).
National Fertilizers Limited. (NFL).
Nagarjun Fertilizer & Chemical Ltd.
Zuari Industries Ltd.
98
Figure 43: Competitor
99
INTRODUCTION OF FINANCE DEPARTMENT

Finance management means rising of adequate funds at the minimum cost and
using them effectively in business. In other words, finance is concerned with the
financial problems of the business organization. Thus finance management dose
not stop at procuring the required finance. It has also to see that it is effectively
utilized in business.
Financial management is concerned with such matters as, how a
business corporation raises its finance and how it makes use of it.
Finance is the most important for the business because finance is the life blood of
any organization. With out finance we can not run our effectively. The efficiency
100
of production and marketing operations is directly influenced

by the finance function of the enterprise. The finance department assumes an
important role in business system and it should be equal important, as with
production and marketing function.
Finance is required not only at the time of establishment, but also at the time of
expansion, modernization, diversification, and replacement of assets. Every
company should be able to manage its finance efficiency and than only a company
can prosper.
ORGANIZATION STRUCTER OF FINANCE

DEPARTMENT
A firm should give proper attention to structure and organization of its finance
department. If financial data is missing or inaccurate, the firm may not be in a
position to identify the serious problems confronting the firm any time for
necessary corrective action. The role of different financial executives should be
clearly defined in order to avoid conflict and overlapping of functions.
101
HEAD OF DEPARTMENT
NAME
Mr. K. R. Gevaria
DESIGNATION
Sr. Manager
( FINANCE )
CHART 17: Organization Structure of Finance Department

Source: financial report of gsfc sikka unit
FINANCE PLANNING
It is very necessary for smooth running of any business. A business cannot be
carried on without planning. It is required in each and every function and area of
management, financial management being one of the branches of management also
needs planning. Financial planning is necessary for the control of inflow and
outflow of cash so that necessary funds may be made quail able as and when they
are required. Financial planning means deciding in advance the financial activity to
be carried out to achieve basic objectives of the firm. Financial is done keeping in
view past as well as present and future.
102
The term Financial Planning is made up of two words, those

are FINANCE and PLANNING.
FINANCE
PLANNING
The term refers to the deciding in advance:
It refers to the monetary aspect of the firm.
1) What is to be done?
2) Who is to do it?
3) When it will be done?
4) How it will be done?
In GSFC Company, the long term planning is done by the head office at Baroda
and short term planning is done by GSFC, Sikka Unit. The Sikka Unit prepares the
budget and it is approved by the Head Office.
LONG TERM
Planning of project finance
Funds management
Public deposit
Income tax
Budgetary control
SHORT TERM
Actual performance is compared
with budgeted targets periodically
and
deviated
are
reported
to
management for corrective actions.
CAPITALIZATION
The word CAPITALIZATION can be defined as sum total of all kind of long term
securities at their par values. Thus, it can be interpreted as the sum of the ownership
capita, bond and other long term debts, and the surpluses.
Capitalization is the sum total of all kind of long term securities issued by a company
as well as the surplus which are not meant to be distributed
There are two types of capitalized firm which are either
1. Over capitalization
2. under capitalization
1) Over Capitalization:
103
A company is said to over capitalization if its earnings are

less in relation to its capital investment. When its earning are not large enough to yield
a fair return on the amount of its issued securities and long term borrowing. or it is said
to be over capitalization when capitalization exceeds the real economic value of its
assets.
(Book value > Market value)
2) Under Capitalization:
A company may be under capitalized when the rate of profit is exceptionally high in
relation to the return enjoyed by similarly situated companies in the same industry or it
has too little capital to conduct business. In other word, over capitalization is a situation
in which the earning is much more than the capital investment.
(Book value < Market value)
In the year 2009-10 the market price per share of the Gujarat State Fertilizers and
Chemical Ltd. is Rs.222. and where as book value per share of GSFC is Rs. 269
So, we can say that Gujarat State Fertilizers and Chemical Ltd. is Under Capitalized
Company Because Of Book Value is greater than the Market Value.
i.e. (269 < 222)
CAPITAL STRUCTURE
The Capital structure decisions are concerned with the optimum mix of Equity
capital & Debt capital. These decisions take into account the interest payment
burden, risk of excessive borrowing & the companys objective of maximization of
owners wealth.
The Capital Structure of G.S.F.C. LTD. is as follows:
104
CAPITAL STRUCTURE
OWNED CAPITAL
Equity share capital
Pref. share capital
Share premium
Reserves & surplus
DEBT CAPITAL
Debentures
Long term loans
Deferred payment liabilities
CHART 18: Capital Structure
CAPITAL STRUCTURE = Long Term Deposits + Pref. Share Capital

+ Equity Share Capital + Reserves
WORKING CAPITAL MANAGEMENT

Working capital management involves the relationship between a firms short term
assets and liabilities. The goal of working capital management is to ensure that the
firm is able to continue its operations and that it has the ability to both maturing
short term debt and upcoming operations expenses. The management of working
capital involves managing inventories, accounts receivables and payable and cash.
There are basically two main concepts in working capital:
105
1. Gross working capital

2. Net working capital
1. Gross Working Capital:
The Gross Working Capital relates to investment in
all the current assets taken together. It is obvious that certain amount of funds is
always tied up in raw-material inventories, work-in-progress, finished goods,
consumable spares, sundry debtors & day to day cash requirements which are
current assets.
2. Net Working Capital:

The Net Working Capital refers to the difference
between current asset and current liabilities. Current liabilities are those claims of
outsiders which are expected to mature for payment within the current year and
include creditors, bills payable and outstanding expenses. Current asset should be
sufficiently in excess of current liabilities to constitute a buffer or margin for
maturing obligations within the ordinary operating cycle of a business.
Symbolically working capital is denoted as:
Net Working Capital = Current Asset - Current Liability
= 210369.84 - 81065.60
= Rs. 129304.24
In Gujarat State Fertilizers and Chemicals Ltd the Net Working Capital is
Rs. 129304.24 lakhs which comprises of investment in inventories, sundry
debtors, cash and bank balances, loan and advances etc.
OPERATING CYCLE
The operating cycle is also known as cast to cash cycle, is duration required to
convert sales after the conversion of resources into inventories, into cash. Sound
financial management of a company involves matching the sources and uses of
cash so that the obligations come due as assets and mature into cash The various
phases of operating cycle can be depicted as given bellow.
106
Collections
Cash
Purchases
Accounts
Receivables
OPERATION
CYCLE
Raw Material
Inventory
Sales
Finished goods
Inventory
W-I-P Inventory
CHART 19: Operating Cycle

The various components of operating cycle are as follow:
1. Raw Material Storage Period = Avg Stock of Raw Material
Cost of Material Consumption Per Day
= 26090500000
667900000
= 39 Days
2. W-I-P Holding Inventory
= Avg W-I-P Inventory

Cost of Production Per Day
= 6525150000
804310000
= 8 Days
107
3. Finished Goods Shortage Period = Avg Stock of Finished Goods

Avg Cost of Goods Sold Per Day
= 16238240000
985510000
=
4. Debtors Collection Period
16 Days
= Avg Debtors
Avg Credit Sales Per Day
= 55112870000
1101140000
= 50 Days
5. Creditors Payment Period
= Avg Creditors
Avg Credit Purchase Per Day
= 38502850000
646400000
=
60 Days
GROSS OPERATING CYCLE = R + W + F + D

= 39 + 8 + 16 + 50
= 113 Days
NET OPERATING CYCLE
= Gross Operating Cycle Credit Period

= 113 60
=
53 Days
108
INVENTORY MANAGEMENT
The Inventories are the stock expressed in the value terms. The term Inventory
Management refers to the maintenance or management of stock or raw material in
the company. The stock should be neither exceed nor less than requirement. It
should be balanced.
The inventories can be sub-categorised as follow:
o Raw Material
o Work-In-Progress
o Finished Good
There are some methods for maintaining the inventories. The various methods of
maintaining the inventories are as under:
1. EOQ Analysis:
In EOQ [Economic Order Quantity] analysis, the carrying
costs and ordering costs are taken into consideration. According to the order, the
ordering cost changes and thus the carrying costs also change. And when both the
costs intersect at their optimum level, it is called Economic Order Quantity.
CHART NO.20: EOQ
109
2. ABC Analysis:
In ABC [Always Better Control] analysis, the inventories are
maintained as per their usages. It can be shown by this following table:
PROCEDURE
NO. OF ITEMS (%)
CONSUMPTION
VALUE(%)
A
B
C
5
10 15
75
70
20 25
5
From this table, we can see that the inventories of level A are used in huge value
but the number of items are less. In level B, the consumption value and the number
of items are almost same. And in level C, the numbers of items are more but its
consumption value is less compared to other levels.
3. HML Analysis:
HML [High, Medium, Low value] analysis refers to the
inventories which are accordingly Higher, Medium and Lower in value terms.
In GSFC Ltd, both the methods as, EOQ and ABC are used. They have inventories
at about 5,95,00,000 and about 15,315 items. In GSFC, the inventories are
maintained as per its consumption:
INVENTORY
INVENTORY
ITEMS
ITEMS
Regular
Regular Items
Items
[Mostly
[Mostly consumed]
consumed]
Non-regular
Non-regular Items
Items
[Less
consumed]
[Less consumed]
CHART NO.21 : Inventory Items

In GSFC, 853 regular items are used such as, Bearings, Tarpoline, Lids of wagons
etc. There are also Seasonal and Off-seasonal items. It depends upon the products
or services provided by the company that whether that is seasonal or off-seasonal.
In this unit of GSFC, the fertilizers are produced so the seasonal items are
maintained for the production purpose.
110
RATIO ANALYSIS
Ratio analysis one of the widely used tool of financial analysis to compare the risk
& return of different firms, also used to interpret the financial statements of
different firms. Ratios are the presentation of techniques, which helps the reader to
get idea about the historical performances & current position of the firm.
TYPES OF RATIOS:
Liquidity Ratios
Profitability Ratios
Solvency Ratios
Activity Ratios
Liquidity Ratios: Also known as short term solvency ratios. The ratios are
helpful to measure the ability of a firm to satisfy its short-term obligations as
they become due.
1. Current Ratio:
The objective of computing this ratio is to measure the liquidity of the firm to meet
its short term solvency of a firm. The more the firms ability to meet current
obligations the greater is the Safety of the short-term creditors.
Current Assets
Current Ratio =
Current Liabilities
2009
2010
= 146313.67
89538.97
= 210369.84
81065.60
= 1.63
=2.60
2. Liquid Ratio :
The objective of computing this ratio is to measure the ability of the firm to meet
its short term obligations as and when due without relying upon the realization of
stock& Bank drafts.
Liquid Assets = Current Assets Stock
Liquid Liability = Current liabilities Bank O/D cash credit
111
Liquid Ratio =
Liquid Assets
Liquid Liabilities
2009
2010
= 146313.67 - 74558.64
89538.97
= 1.20
= 210369.84 61109.69
81065.60
= 1.84
Profitability Ratios: Based on the premises that a firm should earn sufficient
profit on each rupee of sales. It indicates relationship between profit & sales.
1. Gross Profit:
Main aim is to get the result of the relationship between prices, sales volume &
costs. Computing this ratio is to determine the efficiency with which production
and/or purchase operations are carried on.
2009
100
Gross Profit
Ratio
100 =
Gross Profit
Net Sales
100
= 88222.06
589080.00
= 14.98%
2010
= 53207.55
401919.29
= 13.24%
2. Net Profit Margin:

The main objective of computing this ratio is to measure the percentage of each
sales rupee remaining after all costs, expenses & taxes have been deducted.
100
100 = Net Profit After Tax
Net Profit Ratio
100
Net Sales
2009
2010
= 49936.37
601918.36
= 8.30%
= 25447.12
412917.02
= 6.16%
112
3. Return on Equity :
The objective of computing this ratio is to find out the returns on the owners (both
preference & equity shareholders) investment in the firm.
2009
P. A. T
Return on Equity = Equity 100
100
100
= 49936.36
79695.51
= 62.66
2010
= 25447.10
79695.51
= 31.93
Solvency Ratios (Long term Solvency): Calculating the total debt of the firm to
comprise long-term debt plus current liabilities.
1. Proprietary ratio
The objective of computing this ratio is to indicate the extent to which assets are
financed by owners funds.
Proprietary
ratio
Prop. fund (equity)

100
100100
Total Asset
2009
= 193147.16
332248.80
= 58.13
2010
= 214412.17
379206.49
= 56.54
Activity Ratio(Efficiency Ratios):

Ratios which are concerned with measuring the speed with which various
accounts/assets are converted into sales or cash.
1. Fixed assets Turnover Ratio:
The objective of computing this ratio is to determine the efficiency with which the
fixed assets are utilized.
113
Fixed Assets Turnover Ratio =

Net Sales
(Avg .)Fixed Assets
2009
2010
= 588079.59
125326.44
401919.29
126338.42
= 4.69
= 3.18
2. Stock Turnover Ratio:

inventory is utilized & sold, number of times inventory is replaced during the year.
2009
Stock Turnover Ratio =

Cost Of Goods Sold
Avg. Stock
2010
= 513696.50
68481.70
= 359709.47
67834.08
= 7.50
= 5.30
3. Debtors Turnover Ratio:

It shows how quickly receivables or debtors are converted into cash. It also
measures the liquidity of the debtors of the firm.
2009
Debtors Turnover Ratio (in times)

Cr. Sales
= (Avg.) Debtors + B/R
2010
= 588079.59
51994.11
= 401919.29
55112.87
= 11.31
= 7.29
114
4. Creditors Turnover Ratio:

creditors are managed.
2009
Creditors Turnover Ratio (in times)

=
Net Credit Purchase

(Avg) Creditors + B. P.
2010
= 392832.04
39030.40
= 235936.98
38502.85
= 10.06
= 6.12
5. Total Assets Turnover Ratio:

Also known as the investment turnover ratio based on the relationship between the
assets employed & investment of the firm.
2009
Total Assets Turnover Ratio (in times) = 588079.59

332248.80
Net Sales
=
Total Assets
= 1.77
2010
= 401919.29
379206.49
= 1.06
115
LEVERAGE ANALYSIS
Leverage is used for getting higher work done by putting lesser effort. i.e.
mechanical advantage is achieved. Leverage helps us in lifting heavy object which
may not be otherwise possible. Leverage has the mechanical advantage gained by
the use of levers. However, in the areas of finance, the term leverage has a special
meaning. It is used to describe the firms ability to use fixed-cost assets or fund to
increase the return to its owners.
Leverage as the tendency for profits to change at a faster rate than sales.
OPERATING LEVERAGE
The operating leverage may be defined as the firms ability to use fixed operating
costs to magnify the effect of changes in sales on its Earning Before Interest and
Taxes (EBIT). Earning Before Interest and Taxes or EBIT also known as
Operating Profit. The operating leverage takes place when a change in sales
produces a greater change in EBIT.
Operating Leverage at any particular sales volume is calculated as follows:
.
Operating
Leverage
Contribution
EBIT
2010
(Rs in
Crore)
Total Revenue
Less: Variable Cost
Contribution
Less: Fixed Cost
EBIT
.
Operating
Leverage
Contribution
=
EBIT
2009
(Rs in
Crore)
4132.20
3330.28
801.92
239.23
562.69
5952.09
4719.76
1232.33
310.94
921.39
1.42
1.34
TABLE NO 6: Operating Leverage

116
FINACIAL LEVERAGE
The financial leverage associated with the financing activities. It result from the
presence of fixed financial charges in the firms income statement. The financial
leverage may defined as the ability of a firm to use fixed financial charges to
magnify (increase) the effects of changes in EBIT on the earning per share.
Financial Leverage can be calculated as follows:
. Leverage
Financial
EBIT
EBIT - I
EBIT
EBT
The financial leverage of Gujarat state Fertilizers and Chemical Ltd are as follows:
2010
2009
(Rs in
Crore)
EBIT
Less: Interest
EBT
Financial
=
Leverage
EBIT
EBT
(Rs in Crore)
562.69
921.39
30.62
39.17
532.07
882.22
1.06
1.04
TABLE NO 7 : Financial Leverage
117
NET SALES OF GSFC
OPERATING PROFIT (EBIDTA)
PROFIT BEFOR TAX
Source: www.gsfclimited.com
/finance/annualreport09-10
118
EARNING PER SHARE
MARKET PRICE PER SHARE
BOOK VALUE PER SHARE
Source: www.gsfclimited.com/
finance/annualreport09-10
119
CONCLUSION
After I had completed this project, I really got to know about the industry. This is
one of the finest opportunities that is given to me. I experienced many management
functions during this project report. Gujarat State Fertilizers and Chemicals
Ltd. is one of the fastest growing Fertilizer Company of the country.
In this Organization study, I have study the Production Department, Marketing

Department, Human Resource Department and Finance Department of Gujarat
State Fertilizers and Chemicals Ltd. The company has maintained good
industrial relation with outsiders and employees. During our Summer Training in
GSFC, I studied various components of the different department. I observed
different activities of them.
At last, we can say that Gujarat State Fertilizers and Chemicals Ltd. (Sikka
Unit) strives for healthier, happier and better tomorrow. Its demand will be more
than its supply and even face competition. But the co. will be able to win the faith
and trust of its consumer.
120
APPENDIX
TABLE DETAIL
TABLE
NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
PARTICULARS
Managing Group
Awards Of GSFC
Time Keeping System
Salary Structure
Price Of DAP
Operating Leverage
Financial Leverage
Balance Sheet
Cash Flow Statement
PAGE
NO.
18
20
28
70
86
113
114
121
122
121
CHART DETAIL
CHART
NO.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
PARTICULARS
Form of organization
Size of organization
Organization structure of company
Organization structure of production department
Process Flow Diagram
Production Process layout
Storage Department
Organization Structure of Personnel
Manpower planning
Selection process
Training and Development
Grievance Handling System
Organization Structure of Logistic Department
Channel Of Distribution
Distribution Network
Media of advertising
Organization Structure of Finance
Capital Structure
Operating Cycle
EOQ
Inventory Item
Net Sells, Operating Profit, Profit Before Tax
Earning Per Share, Market Price Per Share,
Book Value Per Share
PAGE
NO.
15
16
23
34
37
42
46
54
55
58
61
69
84
87
89
92
99
102
104
106
107
115
116
FIGURES DETAIL
122
PARTICULARS
FIGURES
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
PAGE
Fertilizer Industry
History Fertilizer Industry
Fertilizer Industry In India
Location Fertilizer Industry In India
History Fertilizer Industry in India
Fertilizer Product
Units Of GSFC
Mission, Vision,
Value
Registered office
Banker
Awards Of GSFC
Achievement
Raw material
Infrastructure
Transportation
Power
Location of Company
Time Management System
Mention Memo
Certificates
Weighing Machine
The Finished Products
Quality Control Laboratory
Quality Policy
Manpower Planning
Recruitment
Training And Development
Promotion
performance appraisal
Industrial Relation
Trade Unions
Grievance Handling System
Wages and Salary
Employee Welfare Facility
Employee Welfare Facility
Market Segment
Pricing
Distribution Network
Transportation
Advertising
Sales Promotion
Competitors
3
5
6
7
8
8
9
12
12
14
19
20
22
24
25
25
26
27
29
29
31
44
47
48
51
55
56
61
63
65
66
67
68
70
75
76
85
86
90
91
93-94
95
96
123
Annexure:1
Balance Sheet of Year 2010 & 2009
Particulars
( Rs. in Lakhs )
As at
31 March,2010
As at
31 March,2009
7969.55
206442.62
7969.55
185177.61
st
st
FIXED ASSETS
Share holders funds:
Share Capital
Reserves and Surplus
214412.17
193147.16
Loan funds:
Secured loans
Unsecured loans
17475.11
51283.15
28217.12
(13246.65)
Deferred tax liability

Deferred tax assets
TOTAL
68758.26
14970.47
15478.94
16920.56
31221.65
(14058.48)
298140.90
32399.50
17163.17
242709.8
3
APPLICATION OF FUNDS
Fixed assets:
Gross Block
-Depreciation
Net Block
Capital W-I-P
Project under execution
323159.55
215011.20
108138.25
1164.52
17025.55
126338.42
42498.24
Investments:
Current assets, loans & advances:
Inventory
Sundry debtors
Cash and bank
Loans and Advances
Less: Current liabilities &

Provisions :
Current liabilities
Provisions
Net Current Assets
Table 9: Cash Flow Statement
321531.90
201300.04
120231.86
2050.73
3043.85
125326.44
60608.69
61109.69
62157.86
6011.79
81090.50
210369.34
74558.46
48067.87
3813.86
19873.50
146313.67
42172.09
38893.51
81065.60
46896.16
42642.81
89538.67
129304
.24
298140.90
56774.70
242709.83
Source: www.gsfclimited.com/ finance/annualreport09-10
124
Annexure:2
Cash Flow Statement of Year 2010 & 2009
Cash is the most liquid asset of a business. All business transactions result into
cash inflow or cash outflow. So it can be said that cash is both the beginning and
the end of the business operation. Cash flow statement shows that what was the
cash inflow and cash outflow during the year or what was the actual cash balance
on the hand at the end of the year.
Cash Flow Statement of Gujarat State Fertilizers And Chemicals Ltd. is as Follow
Cash Flow Statement for the year ended 31st March, 2010
Particulars
( Rs. in Lakhs )
For the Year Ended

31st March,2010
For The Year Ended

31st March,2009
38911.92
73994.86
[A]Cash Flow From Operating Activities

Profit before tax
Adjustment for :
Depreciation
Interest charged
Interest received on deposit with
Companies
Loss on Fixed Assets Sold/Written Off
Profit on Sale of Fixed Assets
Income from Investments
Profit/Loss on Sale of Investments
Write off of Bad Debts/Advance
Provision for Doubtful Debts/Advances
Provision for diminution in value of
investments
Operating Profit before Working
Capital Changes
Adjustment for :
Inventories
Trade and Other Receivables
Current Liabilities and Provisions
14085.53
3061.84
14287.02
3916.96
(181837)
30.27
(15.72)
(1594.29)
292.46
-254.13
--543.29
(3.25)
(1925.14)
(79.97)
40.00
197.85
2067.30
5950.73
16363.15
55275.07
13448.77
(21735.16)
(4551.90)
Cash Generated from Operations

Direct Taxes Paid
Net Cash From Operating Activities
22877.88
96872.74
(12153.51)
4708.85
17790.98
(12838.26)
42436.81
(17514.34)
24922.47
10346.32
107219.06
(24420.03)
82799.03
(Contd...)
125
Particulars
[B] Cash Flow From Investing Activities
Purchase of Fixed Assets
Sale of Fixed Assets
Purchase of Investments
Sale of Investments
Deposits with Companies
Interest Received
Dividend Received
Net Cash from Investing Activities
Total c/f.
[C]Cash Flow From Financing Activities
Proceeds from Borrowings
Interest Paid
Dividend Paid
Tax on Dividend Paid
Net Cash used in Financing Activities
For the Year Ended

31st March,2010
(15325.04)
212.98
(23596.40)
39347.09
(55800.00)
1818.37
1594.29
For The Year Ended

31st March,2009
(11666.96)
(1239.29)
(52513.26)
8167.74
0.00
14.91
1970.17
(55266.69)
27532.34
(51748.71)
(26826.24)
36358.76
(3169.88)
(3555.18)
(609.51)
(23477.54)
(4278.86)
(3556.30)
(609.51)
29024.19
(31922.01)
NET INCREASE/(DECREASE) IN
CASHAND CASH EQUIVALENTS
[A+B+C]
2197.35
(4389.67)
CASH AND CASH EQUIVALENTS AT

THE BEGINNING OF THE YEAR
3813.84
8203.52
CASH AND CASH EQUIVALENTS AT

THE END OF THE YEAR
6011.79
3813.84
Table 9: Cash Flow Statement

Source: www.gsfclimited.com/ finance/annualreport09-10
126
BIBLIOGRAPHY
BOOKS
13 th Edition,
Sultan Chand & Sons Education Publisher, New Delhi, 2009
C.B. GUPTA, Human Resource Management,
Marketing Management 13th Edition,

Dorling Kindersley Pvt Ltd, 2009
KOTLER PHILIP,
7 th Edition,
Sultan Chand & Sons Education Publisher, New Delhi, 2009
PRASD L M, Principal and practice of Management,

S.S KHANKA, Entrepreneurial Development,
3 th Edition,
S. Chand & company Ltd., New Delhi, 2007

REPORTS
Annual Report of GSFC 2009-10

Annual Report of GSFC 2008-09
MAGAZINES
GSFC Environment, Health, Safety BULLETIN

Krishi Jivan - January-March-2010
WEBOGRAPHY
WEBSITES
www.gsfclimited.com
www.nationalfertilizerlimited.com
www.astrazeneca.com
127
www.hrmguide.com
128

GSFC Ambaliya Ashvin Roll No - 1 Final Approval

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AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.

NAGADA BBA COLLAGE

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

INTRODUCTION OF FERTILIZERS INDUSTRY

Fertilizers are substances that supply plant

HISTORY OF FERTILIZERS INDUSTRY

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

Chinese and British were the first people

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

FERTILIZERS INDUSTRIES IN INDIA

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

LOCATION OF ALL FERTILIZER COMPANY IN INDIA

Figure 4: Location of fertilizer Industry in India

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

HISTORY OF FERTILIZERS INDUSTRIES IN

The growth of the fertilizer industry began in

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

Figure 7: units of GSFC

Gujarat State Fertilizer &

HISTORY AND DEVELOPMENT OF COMPANY

Gujarat State Fertilizer & Chemical Limited was incorporated under

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

To provide quality inputs and services to

agriculture and industry at competitive price and

To achieve excellence through creativity,

innovation and services to the society.

development innovation and customer satisfaction

Hard work, Discipline, Integrity, Honesty,

Strong commitment to quality of products and

Promotion of creativity and professionalism

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

NAME AND ADDREST OF COMPANY

GUJARAT STATE FERTILIZERS &

Gujarat State fertilizers & Chemicals ltd.

WWW. gsfclimited .Com

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

Figure 9: Registered Office

GUJARAT STATE FERTILIZERS AND CHEMICALS LTD.

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

CHART 1: FORM OF ORGANIZATION

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

SIZE OF THE ORGANISZATION

CHART 2: SIZE OF ORGANIZATION

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

Unit Chief Office

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

Table 1: Managing Group

Source: general report of gsfc

State Bank of India

Indian Overseas Bank

ICICI Bank ltd.

Yes Bank ltd.

Axis Bank ltd.

AMBALIYA ASHVIN SHRI G.H.GOSRANI & D.D.NAGADA BBA COLLAGE

Figure 11: Banker

Award Issued By / For

GSFC bags National Award for