Page 1 Sl. No. Particulars Page No. 1. Objectives and Needs of the Study 02 2. Industry Analysis 03 3. Company Profile & Analysis 04 4. Product Profile 11 5. Functional Departments 16 Manufacturing Department 18 Engineering and Research & Development Department 25 Maintenance and Quality Assurance Department 28 Marketing Department 35 Human Resource Department 42 Finance Department 51 5. “SWOT” Analysis 60 6. Management Problems 63 7. Findings, Suggestions and Conclusion 65 8. Bibliography 68 TABLE OF CONTENTS: AL – AMEEN INSTITUTE OF MANAGEMENT STUDIES, BANGALORE – 560 027
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Page 1
Sl. No. Particulars Page No.
1. Objectives and Needs of the Study 02
2. Industry Analysis 03
3. Company Profile & Analysis 04
4. Product Profile 11
5. Functional Departments 16
Manufacturing Department 18
Engineering and Research & Development Department 25
Maintenance and Quality Assurance Department 28
Marketing Department 35
Human Resource Department 42
Finance Department 51
5. “SWOT” Analysis 60
6. Management Problems 63
7. Findings, Suggestions and Conclusion 65
8. Bibliography 68
TABLE OF CONTENTS:
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OBJECTIVES OF THE STUDY:
To study the organizational activities in all functional areas and relate this to theoretical
knowledge acquired.
To understand the various departments procedure in the company.
To gain insight into the new trends in management of the company.
To study methodologies used by the organization to compete with others.
NEEDS FOR THE STUDY:
Practical Knowledge
Practical study of the organization reveals the knowledge regarding various aspects of the
company such as planning, organizing, controlling, staffing etc.
Presentation Skill
The project study helps in improving the presentation skill and communication skill of the
student.
Industrial Exposure
The project study also helps in getting knowledge regarding functional activities of various
departments of the organization such as Marketing, Finance, Human Resource, Production
etc.
SCOPE OF THE STUDY:
This study is an attempt to study the organization as whole and to study the different
departments in detail so that the student gets a detailed knowledge about the organization
from different angles and to study the functions of the different departments which constitute
the organization so as to suggest effective measures such that organization achieves its
objectives.
The study focuses on the departments and their functions and the methods to improve the
organization, hence this study provides a very wide scope for the student to gain an insight
into the practical aspects of the working of an organization and thus increase managerial
skills.
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INDUSTRIAL ANALYSIS:
Heavy industry in India comprises of heavy engineering industry, machine tool industry,
industrial machinery and auto industry. These industries provide goods and services for
almost all sectors of the economy, including power, rail and road transport. The machine
building industry caters to the requirements of equipment for basic industries such as steel,
non-ferrous metals, fertilizers, refineries, petrochemicals, shipping, paper, cement, sugar etc.
Heavy electrical industry covers power generation, transmission and distribution and
utilization equipments. Some major areas where these are used are the multi core projects for
power generation including nuclear power stations, petrochemical complexes, chemical
plants, integrated steel plants, nonferrous metal units, etc.
The domestic heavy electrical equipment manufacturers are making use of the developments
of the global market with respect to product designs and upgrading of manufacturing and
testing facilities. The country is planning to add 150000MW power generation’s capacities in
the next ten years this will generate substantial demand for heavy electrical equipments. The
heavy electrical industry is capable of manufacturing up to 400 KV AC and high voltage DC.
In the initial years no overseas co. thought of setting up a manufacturing co. in India, Burma,
Aden, Silon, many of them merchandising and contracting through their local agents in India
like Kilburn & Co, Killick Nixon, F&C, Osder & Co, Balmer lawree, Jessup & co, John
Fleming etc.
After commissioning the Calcutta and Madras power plants, Crompton established its office
in 1899 and 1904 respectively. GEC (India) limited came to India in 1911 as a distributing
co., so did SIEMENS in 1922, Crompton Parikson at Bombay in 1937, Philips Electrical
Company (India) limited at Calcutta in 1937, AEI manufacturing company limited at Calcutta
in 1939, among the Indian companies Bengal Electrical Lamps was established in this era.
Other important co.s likely L&T (Lawren and Turbo) a partnership of two
enterprises in 1938, Bajaj electrics in 1938, ESS, KAY engineering in 1935, Jyothilimited in
1943, Mysore electricals in 1945 then Kirloskar electrics in 1946 and GFM manufacturers
etc.
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COMPANY PROFILE:
Name of the Company : KIRLOSKAR ELECTRIC COMPANY LTD.
Power Plants : Nuclear, Thermal.Utilities : Cinema, Gas Station, Hospitals, Hotels, Mill, Telecom.Military : Auxiliary power to fire armaments from land & Sea.
High Voltage Motors:FEATURES VALUES/ STANDARDS
Ambient Temperature : -10 to +50deg C
Altitude : Not exceeding 1000 m Above mean sea level
Voltage : 6.6kV, 3.3kV, 11kV +/- 10%
Frequency : 50Hz +/- 5%
1. Mega pack closed type cage & wound 2. Spectrum closed type cage & wound
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Low Voltage AC Motors:FEATURES VALUES / STANDARDS
Altitude : Not exceeding 1000mtrs. Above mean sea level.
Voltage : 415V±10% (Can also be offered up to 650V)
Frequency : 50hz. ±5%
1. Rerolling Mill Duty Motor 2. Open type motor
(Ambient temperature 0 to +45°C) (Ambient temperature -10 to +50°C)
3. Primo Series (up to 160 frame) 4. Wound Open Type Series
(Ambient temperature -10 to +50°C) (Ambient temperature -10 to +50°C)
5. Spectrum Series (180 and above frame) 6. Crane Duty Motors
(Ambient temperature -10 to +50°C) (Ambient temperature -10 to +50°C)
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INTRODUCTION:
HRD functions is to satisfy the organizational needs, Selecting right persons for the right job
and to manage people not only workers but also includes white collared professionals. Thus,
the main objective is to maintain cordial relationship, by providing maximum welfare &
thereby optimizing the personal contribution for the effective functioning of the undertaking.
KECL recognizes its employees as the most important asset for its continued growth. HRM
providing the environment and opportunity for every individual to raise their highest
potential. Identify and achieve his/her personal goal within the frame work of organizational,
societal, and national objectives. It shall endeavor to uphold the dignity of individuals by
making them feel proud partners through the following measures…
Ensure a high degree of selectivity in recruitment of employees, trainees explicitly on
the criteria of their knowledge, skills, and attitudes.
Impart such induction, circulation and training so as to match the individual to the
task and inculcate a high sense of org.nal loyalty.
Provides facilities for all round growth of the individual by training in and outside the
organization, reorientation, lateral mobility and self development through self
motivation.
Build team and foster team as the primary instrument in all activities.
Recognize worthy contribution of the employees in time and appropriately so as to
maintain a high level of employee motivation and morale .Appraisal and promotion
shall be ethical and impartial.
Contribute towards the health and welfare of the employees.
Implement equitable, scientific and objective system of rewards, incentives and
control.
Groom every individual to realize his potential in all facets while contributing to
attain higher organizational and personal goals.
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ORGANISATIONAL CHART OF HUMAN RESOURCE DEPARTMENT:
UNIT CHIEF
GM (P & IR)
AL – AMEEN INSTITUTE OF MANAGEMENT STUDIES, BANGALORE – 560 027
COMPANY
GUARDS
SR. MANAGER
(Training &
Development
Centre)
ASST. MANAGER
(Personnel &
Administration
functions)
CONSULTANT
(AMBULANCE
ADMINISTRATION)CHIEF SECURITY
OFFICER
(Security, vigilance,
telephone exchange,
reception &
gardening)
ASST. MANAGER
(CORP. SAFETY)
Safety &
Environmental
Management
MANAGER
(P & IR) &
FACTORY
CIVIL
ENGINEER
ON
CONTRACT
APPRENTICE
TRAINING
MANAGER (2)
WELFARE OFFICERS (2)
CANTEEN &
TRANSPORT
TIME OFFICER
TIME OFFICE
ADMINISTRATION
JUNIOR
SECURITY
OFFICER
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TOTAL NUMBER OF EMPLOYEES:
Daily rated employees : 376
Monthly rated employees : 160
Outsourcing workers : 200 – 250
Monthly Rated Employees (MRE):
They are under the management category; they get salary on monthly basis. Yearly wise they
get increment based on performance and experience fixed by management in KEC.
There are 160 monthly rated employees in Unit-1 in Bangalore.
MRE will work daily in one shift i.e General shifts: 9.15 am to 5.15 pm
Daily Rated Employees (DRE):
Workmen category paid on daily wages basis for 26 days, exclusive of Sundays in the month
and also based on the attendance of worker.
In KEC – Unit-1, there are 376 daily rated employees. DRE will work daily in 3 shifts-
First shift : 6.30 am to 2.30 pm
Second shift : 2.30 pm to 10.30 pm
Night shift : 10.30 pm to 6.30 am
Production process will be going on 24 hours a day. Weekly once shifts will be changed to all
the employees. In one shift 120-130 workers are working in KEC shop floor plant.
Outsourcing Workers:
They are under contract category, they get daily wages.
In this Unit, 200 – 250 workers are there. They are grouped by--
“Sneha” for gardening and
“Aishwarya” for housekeeping.
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RECRUITMENT PROCESS:
Vacancy from each department is analyzed and call is made for employment through the
internet. The processes of recruitment are as follows:
1. Interim written test.
2. Aptitude test.
3. General round.
4. HR interview.
5. Analysis of technical qualification of the candidate and previous experience.
6. Analysis of Expected Salary.
7. Skill testing (communication skill, working skill etc,) and the HR Manager will fix
the salary and put the candidate under training.
TRAINING AND DEVELOPMENT (T&D):
In organization development, the related field of T&D deals with the design and improve
performance, skills, or knowledge within organizations. A fully fledged training centre
provides training to senior executives, managers, supervisors and operators in the areas of
management, marketing, technical, information technology, and quality in KEC.
In KECL there are 4 types of training:
1. Trade Apprentice Training: This training is mainly for selected ITI candidates for the
job. This training is related to production unit such as electrician, mechanist, fitter, and
turner.
2. Graduate Apprentice Training: This training is mainly for diploma and B.E.Graduates
where the new comer can be exposed to the working environment.
3. Employee Training; This training is mainly for the workers and other employees, which
is generally used to upgrade their abilities according the external environment.
4. Other Trainees: This training is mainly for the non apprentice and other commercial
trainees, which is used for external studies about the organization.
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INDUCTION:
At KECL new recruits shall be imparted such induction, orientation, training, and
development so as to match the individual to the task and inculcate a high sense of
organizational loyalty.
The Human Resource department and the concerned head of the parent department shall
prepare a well structured induction programme to recruit the people.
PLACEMENT:
The new entrant shall be placed under the best manager in the organization. This implies that
the manager being a role model, shall himself is a top performer, have the necessary skills in
inculcating the right values and attitudes in young people.
The new employee shall be placed under senior executive who will act as his mentor. This
mentorship process will start at the probation stage and shall continue for next 5 years.
PERFORMANCE APPRAISAL:
It is a method by which the job performance of an employee is evaluated (generally in terms
of quality, quantity, time and cost).
Appraisal consists of four stages viz… Self – appraisal, Performance assessment,
Development plan, Final evaluation and grading. Generally, the aims of a scheme are:
Give feedback on performance to employees.
Identify employee training needs.
Document criteria used to allocate organizational rewards.
For personal decisions: salary increases, promotions, Disciplinary actions, etc
Provide the opportunity for organizational diagnosis and development.
Facilitate communication between employee and administrator.
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AWARDS:
Awards are instituted by the company in the recognition of outstanding work performance,
useful suggestions for the improvements, and contributions to technical/academic knowledge.
PROMOTIONS:
Company adopts an Accelerated Promotion Schemes for fast trackers in recognition of
employee’s performance. Systematic job rotation is carried out to nurture the all round
growth of the individual through lateral mobility. Job rotation is based on the individual’s
experience, personality, attitude, education and performance, in addition to job related skills
and knowledge.
COUNSELING:Counseling services are provided to enhance employee’s competence and job satisfaction, to
prepare them for future responsibilities, to establish better working relationships and to cope
up with personal problems. Counseling is carried out by HRD and professional counselors.
CAREER PLANNING:
This is to ensure that people of the right calibre are available to meet the present and future
requirements of organization. The process identifies the necessity inputs aim at imparting
technical/managerial knowledge, inter-personal skills and attitudes that will helping dealing
with the external and internal environments. Other factors to develop potential include
activities such as exposure to new functional projects.
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BENEFITS TO EMPLOYEES:
Dearness Allowance (D.A):
D.A payable to the workmen covered by this settlement has been fixed at Rs.4072 per month
with reference to All India Consumer Price Index for Bangalore city at 547 points published
by Labour Bureau.
House rent allowance:The management agrees to pay every workmen covered under the settlement, House Rent
Allowance of Rs.1306 per month.
Washing Allowance:The management pay the washing Allowance of RS.150 per month to the workman who
attend the Factory on all the working days in a month.
Education Allowance:Rs.200 per month to all workmen.
Attendance Bonus:A workman will be eligible for Attendance Bonus of Rs.40 per calendar month, if he puts in
100% attendance during such month.
Shift Allowance:Shift Allowance pay to the workmen working in the second shift commencing from 2:30 pm
and thereafter at the rate of Rs.10 per day per shift per workman provided they actually work
till the end of that shift and for those who work in the third shift commencing from 10:30 pm
and thereafter, the shifts allowance will be at the rate of Rs.16 per day per shift per workman.
Festival Advance:The management agrees to grant to every workman, festival Advance of Rs.2200 in a
financial year of the company.
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Leave Travel Assistance:A workman will earn the Leave Travel Assistance by working at least 240 days in a year.
Uniform and shoes:The management gives every year, 2.5 meters pant cloth and 4 meters of terry cot shirt cloth
of good quality. And pay a sum of Rs.475 per year, towards stitching charger of 2 pairs of
uniform. And also provide one pair of industrial safety shoes with 2 pairs of socks. Jerkin or
sweater provided in every 2 years to all workmen.
Leave Facilities:Providing Eleven National and Festival Holidays with wages.
Sick Leave for workmen not covered under ESI Scheme:
Medical Reimbursement Scheme for workmen not covered under the ESI Scheme: Medical expenses reimbursable under the scheme will not exceed Rs. 3200 per year for
workman and his family as a whole.
Canteen:An amount of Rs.65 per month shall be deducted from each workman towards supply of two
coffee or tea and one lunch or dinner per day.
Grievance Procedure:The clause XXVII of the memorandum of settlement which contains (A) Grievance
procedure, (B) Facilities to Employee office Bearers and committee members of the
Association and (C) General Provisions, will continue to operate.
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INTRODUCTION:
Finance Management provides a framework for financial decision making. It is concerned
with efficient & wise allocation of funds to various uses. Kirloskar Electric Company Ltd
situated at Govenhalli has a corporate finance department at Malleshwaram, which is
responsible for all the major financial decisions.
CORPORATE FINANCE DEPARTMENT:
The corporate finance department controls the financial activities of all 5 units of Kirloskar
Electric Company (KEC). It is responsible for taking all the important financial decisions &
also prepares the annual operating plans & the long range plans.
The monthly operating plans are divided into weekly & daily plans. The unit has a fixed
target on daily basis derived from operating plan prepared on daily basis & circulated to the
entire concerned corporate officer.
All units are functionally accountable to the corporate department & is monitored & revived
quarterly. Some of the decisions taken up in this department are,
Dividend policy
Capital Expenditure
Diversification
Collaboration etc.
The sap R/3 is an integrated system of materials, production, sales and financial accounting.
There were some mistakes that occurred mainly in the areas of production and materials
accounting. Valuation of inventories created a mistake and upload of balance during its
implementation most of which has been identified and rectified.
All the final accounts have been prepared incompliance with all the mandatory requirements
specified under section 211 of the company’s act of 1956. The company has not been regular
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in depositing statutory dues such as provident fund, employees state insurance, income tax,
sales tax, customs duty, excise duty, etc. with the appropriate authorities.
FUNCTIONS OF THE DEPARTMENT
Maintenance of payroll records.
Maintenance of sales and purchase books.
Maintenance of cash and bank records.
Updating the general and subsidiary ledgers.
Preparing the management information report.
Passing bills.
Invoicing/costing.
Taxations.
RESPONSIBILITIES OF THE DEPARTMENT
Responsible for sales tax, income tax return & periodical returns to the bank.
Also responsible for preparation of profit and loss account and balance sheet.
It is authorized-signatory for payment of vouchers, receipt and also looks after the
overall administration of accounts and review of the work of the personnel.
Responsible for financial-accounting system and verification and scrutinizing the
account in general ledger and preparation of Profit and Loss account as well as
Balance Sheet.
LIST OF STOCK EXCHANGES:
The shares of the company are traded in-
Bangalore Stock Exchange Ltd
Madras Stock Exchange Ltd
BOMBAY Stock Exchange Ltd.
The company had taken loan from various banks. Those banks were as follows:
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State Bank of India, State Bank of Mysore, SB of Travancore, Bank of India,
Bank of Baroda, Axis Bank, ICICI & Bank of Commerce, Koulalumpur.
FLOW CHART OF FINANCE DEPARTMENT:
(3 persons)
(6 persons)
(2 persons)
AL – AMEEN INSTITUTE OF MANAGEMENT STUDIES, BANGALORE – 560 027
The company’s financial statements are prepared as per the guidelines of Accounting
Standers under Indian GAAP.
Accounting System:
The company follows the accrual system of accounting in respect of all of expenditure and
income.
The company has complied with Accounting Standard - 2 in respect of valuation
of R.M stores and components and in respect of work in progress and finished goods.
The SAP R3 is an integrated system for materials, production, seals and financial accounting.
Inventories:
Raw Materials stores, spare parts and components are valued on FIFO / Weighted Avg. basis.
Work In Progress is valued at works cost or net realizable value whichever is lower.
Finished goods are valued at works cost or net realizable value whichever is lower.
Depreciation:
a) Depreciation is charged on written down value of assets at the rates specified in
Schedule XIV to the companies Act, 1956 or Income Tax Act 1961, WE higher on
assets as on 31/3/1994.
b) After 1/4/1994 depreciation on straight line basis at the rates on Schedule XIV to
companies Act has been charged, except otherwise stated.
c) Depreciation on furniture and fixtures above Rs. 5000 charged @ 33.33% on straight
line method. Below 5000 are fully depreciation in year of addition.
d) Depreciation on assets taken on lease is charged over the primary lease period.
e) Depreciation on software is provided @ 33.33% p.a.
f) Depreciation on technical know-how are written over a period of 6 years.
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g) Finance lease arrangements relate to Plant and Machinery. The lease period is for 5
years with interest rates ranging from 13% to 14% p.a.
RISK MANAGEMENT:
The company has said down procedures to inform Board Members about the risk assessment
and minimization procedures. There are periodically reviewed and to ensure that executive
management controls risk through means of a properly defined framework.
CREDIT POLICY OF THE COMPANY:
The credit policy of Kirloskar Electricals was 90 days, 30 days and also 40 days likewise the
company will provide credit to its customers.
31ST MARCH 2009:
Company performance – during the year, company has archived a turnover (gross) of Rs.
9.63 billion (previous year Rs.9.46) the operations have resulted in a net profit of Rs. 302.12
million (previous year Rs. 620.14 million)
Equity Dividend- Directors regret their inability to declare any equity dividend for the year
under report. The company has not transferred any amount to it is.
Equity Dividend:
In order to conserve for resources for company’s growth, the company has not transferred
any amount to its General Reserve.
Preference Dividend:
Payment of dividend of 7% on the preference shares issued to IDBI Bank ltd on 1800000
preference shares of Rs 100 each from 1.10.2001 to 30.4.2003 & 1200000 preference shares
of Rs 100 each from 1.5.2003 to 31.3.2004.
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AUDITED FINANCIAL RESULTS FOR THE YEAR
ENDED MARCH 31, 2011
Amount (Rs. In Lacks)Sl. No Particulars 31/3/2011 31/3/20111 a Gross Sales 89,522 90,557 Less : Excise Duty 7,134 6,484
Net Sales/ Income from operations 82,388 84,073 B Other Operating Income - -2 Expenditure A (Increase)/decrease in stock in trade (1,162) (969) B Consumption of raw materials 62,929 61,115 C Purchase of traded goods 1,542 1,366 D Employee cost 7,598 7,556 E Depreciation 1,619 1,579 F Other expenditure 7,434 7,625 G Total 79,960 78,2723 Profit from Operations before other income, Interest &
exceptional items (1 - 2g)2,428 5,801
4 Other Income 361 1,1955 Profit before interest and exceptional items ( 3+4 ) 2,789 6,9966 Interest 2,576 2,2577 Profit after interest but before exceptional items ( 5-6 ) 213 4,7398 Exceptional Items (Net) - -9 Profit from ordinary activities before tax ( 7- 8) 213 4,73910 a Provision for Current Tax 2 1,050 B Provision for deferred Tax - -11 Net profit from ordinary activities after tax (9-10) 211 3,68912 Extraordinary Item (net of tax expense) - 7013 Net profit for the period (11+12) 211 3,75914 Paid up Equity Share Capital (face value of Rs. 10/-) 5,052 5,05215 Reserves Excluding Revaluation Reserves (As per
Balance Sheet of Previous Accounting Year)12,658 12,448
16 Earnings Per Share (EPS) A Basic & Diluted EPS before Extra ordinary items (not
annualized)0.18 6.95
B Basic & Diluted EPS after Extra ordinary items (not annualized)
0.18 7.09
17 Aggregate of Non-Promoters Shareholding
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Number of Shares 25,658,739 25,685,164Percentage of holding 50.79% 50.84%
18 Promoters and Promoter group shareholding A Pledged/Encumbered
-Number of Shares 2,500,000 5,329,785 -Percentage of Shares(as a % of the total share holding of promoter and promoter group)
10.06% 21.46%
-Percentage of Shares (as a % of the total share capital of the company)
4.95% 10.55%
B Non-Encumbered -Number of Shares 22,362,628 19,506,418 -Percentage of Shares(as a % of the total share holding of promoter and promoter group)
89.94% 78.54%
-Percentage of Shares (as a % of the total share capital of the company)
44.26% 38.61%
STATEMENT OF ASSETS & LIABLITIES as on March 31, 2011
Amount (Rs. In Lacks)Sl. No. Particulars March 31, 2011 March 31, 2010
Sources of Funds1 Share Holders Funds1 a Share Capital 5,826 6,5991 b Reserves & Surplus 13,139 12,929
3 Current Assets Loans and Advances3 a Inventories 11,617 9,1223 b Sundry Debtors 19,604 20,0053 c Cash & Bank 5,569 4,4493 d Loans & Advances 4,827 3,422
4 Less: Current Assets and Provisions4 a Liabilities 32,606 26,1444 b Provisions 2,433 3,470
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Total 34,115 33,550
THE CONSOLIDATED KEY FIGURES OF THE COMPANY
FOR THE YEAR ENDED MARCH 31, 2011
Amount (Rs. In Lacks)Sl. No. Particulars March 31, 2011 March 31, 2010
Net Profit (Before Extra-ordinary items & Taxation)
1,090 6,331
Provision for taxation 357 1,145
Profit After Tax 733 5,186Less: Minority Interest 46 63Add/(Less) Share of (Loss)/Profit from associates
4 (27)
Profit attributable to shareholders of the Company
691 5,096
EPS Basic & Diluted (Not Annualized) Rs. Per Share before extraordinary item
1.13 9.59
EPS Basic & Diluted (Not Annualized) Rs. Per Share after extraordinary item
0.84 9.73
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STRENGTHS:
Strength of KEC is its Brand Name.
Streamlining, redefining and recreating of process, design and testing parameters to Six
Sigma and other stringent quality measures.
KSL is one of the rare units in the world which produces the high voltage AC/DC motors
and generators.
The company has received an ISO certificate for producing quality products.
The company has spread its branches to other parts of the world.
The company has a well equipped quality control department for inspecting the quality of
incoming products and final products.
The company is one of the old company which manufactures electric products to
industries and has built a good reputation.
The company provides all the necessary facilities for the welfare of their employees.
Company guarantees job security to all its employees this makes them to be more
committed & loyal.
The company has a very stable management that forms strong foundations of the company.
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WEAKNESS:
Under utilization of resources because of overstaffing.
There is a less coordination between different departments.
Most of the employees are aged persons which might reduce the productivity in future.
The company does not have any promotional activity.
OPPORTUNITY:
The company has an opportunity to expand its production units due to more demand for
its products.
The company has got better tool for better planning and decision making.
The company can establish more branches across the globe.
There is a growing demand for motors and generators in other developing countries.
THREATS:
Workers absenteeism is very high since most of the workers are old.
Cost of production is high.
Company faces competition from not only large units but also from smaller units because
of concession duties tax deduction available to them.
Company faces competition from companies like Crompton Parikson, Crompton greaves,
Siemens, Philips Electricals.
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PROBLEMS IN MANUFACTURING DEPARTMENT:
Manufacturing department has various sections but there is no “Non - Stop” production
wheel in each sections because of the manufacturing of products are depending upon the
orders of the customers. If the orders is less the working activities in the department is also
less. It also caused to under utilization of raw materials.
The period for manufacturing the products are depends upon the range of products and
customer’s needs and specifications. Therefore cannot able to estimate the period for
manufacturing and cost of the products. Some products may takes up to 1 to 1.5 years also. In
order to this the cost of production is also high.
The most of the employees in manufacturing department are old aged therefore the working
speed is very less.
SUGGESTIONS:
The cost of the production has to minimize by producing more number of products.
The company has to concentrate on advertising because it may increase the orders and it ensures non - stop working in production department.
Production schedule should be fully followed so that the performance of work can be increased and slowness of work can be decreased, so as to achieve the company’s goals.
The department should plan for proper utilization of raw - materials.
Also it has to concentrate on R&D for face the competition by producing new and updated products & for adopting upgraded machines in manufacturing.
The department has to minimize the wastages.
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FINDINGS:
Kirloskar products are segmented in various ranges so competitors are high.
Kirloskar is being showing consistent growth prospects.
Kirloskar is managing its Human Resources and marketing very effectively by
conducting various types of training and others session.
Kirloskar has a motivated work force.
It is very consistent in its operations. It has achieved a great feet of reaching the targets
for record of 60 years continuously from 1946 to 2008.
Products in Kirloskar are tailor made i.e. they are produced as and when demanded by the
customers.
Kirloskar is establishing its marketing segment according to demand of the products in
different zones.
Advertisement costs are too less because they manufacture the products based on the
orders.
Kirloskar electric company has ISO, KEMA, CE & NVLAP certifications.
The ready acceptance of Kirloskar Electric products in USA, Europe, Canada, Hong
Kong, Australia, China, Singapore, South Africa, Malaysia, Pakistan, Bangladesh along
with the hard to earn certification by world's leading companies.
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SUGGESTIONS:
Kirloskar needs technological upgrading since in some machines is old Kirloskar needs
young upgraded work force than older force so it needs to replace them gradually as time
permits.
Kirloskar has to concentrate more on research and development.
Kirloskar has to build mutual trust among the employees.
CONCLUSION:
Since it is one of the oldest company having the history of about 64 years. It has a very good
reputation in the market. It was the first company to produce AC motors and DC motors. It
has the monopoly till 1980‘s in the production of DC motors.
Kirloskar is a multi locational company as it is located in various parts of the country. The
products of the kirloskar have been marketed to various countries like Malaysia, Singapore
and Dubai. The strategy implied by the company is premium established proven production
from 1960s. Generally the strategy is dependent on Quality and Service.
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BIBILOGRAPHY:
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Books:
Sl. No. Books of Reference Author Edition
1. Marketing Management Bholonath Dutta 2010
2. Financial Management Dr. Pradeep kumar Sinha 2010
3. Human Resource Management
VSP Rao2010
4. Production And Oparations Management
Upendra Kachru2010
Others:
1. Reports from Kirloskar Electric Company ltd.
2. Datas collected from various departments of Kirloskar - Electrics
3. Informations collected from managers of kirloskar–electrics.
4. www.kirloskarelectric.com
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