Final report

INTRODUCTION

In this competitive business world to gain success an organization has to have a upgraded technology and knowledge, by this only it can acquire the market.To upgrade the technology and knowledge it is necessary to understand the organization

structure. An organization structure consist of four major areas. They are

Specialization of work

Departmentalization

Span of control

Centralization and decentralization

By this we can say that every component of organization has impact on organization

structure. To study the impact of these components organization study is essential.

OBJECTIVE OF THE STUDY

Organization study helps to understand and predict organization life.

Organization study provides a road map to lives in organization.

To study the comparison between the theoretical aspects and the practical

implementation in the company

To know the major sources and factors that motivated the customer to buy those

products..

Organization study helps in generating new ideas.

To know the financial status of the company.

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INDUSTRY PROFILE:

Soap is one of the commodities which have become an indispensable part of the life of

modern world. Since it is non durable consumer goods, there is a large market for it. The

whole soap industry is experiencing changes due to innumerable reasons such as

government relations environment and energy problems increase in cost of raw material etc.

The changing technology and ever existing desire by the individual and the organization to

produce a better product at a more economical rate has also acted as catalyst for the dynamic

process of change.

More and more soap manufacturers are trying to capture a commanding market share by

introducing and maintaining acceptable products. The soap industry in India faces a cut

throat competition while multinational companies dominate the market. They are also facing

severe threat from dynamic and enterprising new entrance especially during 1991-92.

If we look back into the history of soaps & detergents, mankind knew about soaps nearly

2000 years back i.e. in 70 A.D. when Mr. Elder accidentally discovered the soap, when

roasted meat over flowed on the glow in ashes. This lump like product was soap & had

foaming & cleansing character. In 1192 A.D. the first commercial batch of soaps was made

& marketed by M/s Bristol soap market in London, from there in 1662A.D. the first patent

for making soap was taken in London. The world consumption of soap in 1884A.D. was

said to be 2 lakh tonnes p.a.

2

HISTORY OF THE SOAP:

Soap manufacturing was started in North America. Some American companies with well

known names were started 200 years ago. During middle age soap was made at various

places in Italy, France, England & other countries. France became famous & many small

factories were established there.

In India the first soap industry was established by North West soap company in1897 at

Meerat following the Swadeshi movement. From 1905 onwards few more factories were

setup.

They are,

Mysore soap factory at Bangalore

Godrej soap at Bombay

Bengal chemicals

Tata oil mills

1930 lever brothers company

THE INDIAN SOAP INDUSTRY SCENARIO:

The Indian soap industry has long been dominated by hand full of companies such as:

1. Hindustan Uni levers limited.

2. Tata oil mills (taken over by HUL)

3. Godrej soaps private limited.

The Indian soap industry continued to flourish very well until 1967-68, but began to

stagnate & soon it started to recover & experienced a short upswing in 1974. This increase

in demand can be attributed due to;

1. Growth of population.

2. Income & consumption increase.

3. Increase in urbanization.

4. Growth in degree of personal hygiene.

Soap manufacture has 2 classifications, organized and unorganized sectors. KSDL comes

under organized sector.

3

PRESENT STATUS:

Market scenario:

India is the ideal market for cleaning products. The country’s per capita consumption of

detergent powders & bars stands at 1.6kg & soaps at543Gm. Hindustan liver, which towers

over the cleaning business, sells in all over the cleaning business but the tiniest of Indian

settlements.

The 7.4lacks tons per annum soap market in India is crawling along at 4%. The hope lies in

raising Rupee worth, the potential for which is high because the Indian soap market is

pseudo in nature & it is amazingly complex being segmented not only on the basis of price

benefits, but even a range of emotions within that outlining framework.

PROBLEMS OF SOAP INDUSTRY:

Soap industry faces some problems in case of raw materials. The major ingredients are soap

ash, linear alkyl, benzene& sodium. Tripoli phosphate poses number of serious problems in

terms of availability. The demand supply gap for vegetable oil is 1.5 to 2 lacks tons & is met

through imports. In recent times, caustic soda and soap ashes in the cheaper varieties of

soaps are quite high.

4

COMPANY PROFILE:

HISTORY:-

India is a rich land of forest; ivory, silk, sandal; precious gems are magical charms of

centuries. The most enchanting perfumes of the world got their exotic spell with a twist of

sandal. The world’s richest sandalwood resource is from one isolated stretch of forests land

in South India that is Karnataka.

The origin of sandalwood and its oil in Karnataka, which is used in making of Mysore

sandal soaps, is well known as Fragrant Ambassador of India & Sandalwood oil is infact

known as “Liquid Gold”.

By the Inspiration of His Highness Maharaja of Mysore late Jayachamarajendra Wodeyar,

the trading of sandalwood logs started which was exported to Europe and New destinations,

but with commencement of First world War India faced Severe Crisis on the business of

sandalwood.

This situation gave rise to start of an industry, which produces value added products i.e., of

Sandalwood oil. His Highness Maharaja of Mysore created this situation as an opportunity

by sowing the seed of the Government Sandalwood Oil Factory, which is the present

KS&DL. The project was shaped with the engineering skills and expertise of the top level.

Late Sir M.Visvesvaraya, the great Engineer who was the man behind the project.

Today’s famous Mysore sandal soaps credit goes to late Sri Sosale Garalapuri Shastri who

incorporated the process of soap making using Sandalwood oil. He was an eminent scientist

in the field working at the Tata Institute, Bangalore. He was sent to England to master the

fine aspects of soap manufacturing.

The Maharaja of Mysore & Diwan Sir.M.Visvesvaraya established the Government

Soap factory during the year 1918. The factory was started as a very small unit near

K.R.Circle, Bangalore with the capacity of 100 tons P.A. In November 1918 the Mysore

sandal soap was put into the market after sincere effort and experiments were undertaken to

evolve a soap perfume blend using sandalwood oil as the main base to manufacture toilet

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soap. The factory shifted its operation to Rajajinagar industrial area, Bangalore in July

1957, where the present plant is located. The plant occupies an area of 39 acres (covering

Soaps, Detergents and Fatty Acid divisions), on the Bangalore – Pune Highway, easily

accessible by transport services and communication. Another sandal wood oil division was

established during the year 1944 at Shimoga, which stopped its operations in the year 2000.

This factory started at a moderate scale in year 1916. The first product was washing soap in

addition to the toilet soap in the year 1918. The toilet soap of the company was made up of

sandal wood oil.

In 1950 Government decided to expand the factory in two stages. The first stage of

expansion was done to increase the output to 700 tons per year and was completed in the

year 1952 in the old premises.

The next stage of expansion was implemented in 1954 to meet growing demand for Mysore

sandal soap and for this purpose Government of India sanctioned license to manufacture

1500 tons of Soaps and 75 tons of glycerin per year. The expansion project worth of Rs.21

lacks includes the shifting of the factory to a newly laid industrial suburban of Bangalore.

The factory started functioning in this new premise [i.e., present one] from 1 st July 1957.

From this year onwards till date the factory had never looked back, it has achieved growth

and development in production scales and profits.

The industry has 2 more divisions one at Shimoga and another at Mysore where sandal

wood oil is extracted. The Mysore division started functioning from 1917 and only during

1984 manufacturing of perfumed and premiere quality Agarbathies at was started. Right

from the first log of sandalwood that rolled into the boiler room in 1916, the company has

been single – minded pursuit of excellence. The project took shape with the engineering

skills and expertise of top-level team under the leadership of Sir. M.Visvesvaraya, Prof.

Watson and Dr.Sudborough. Like this soap factory was started as a small unit and now it

has grown up to a giant size.

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RENAMING: -

On 1st October 1980, the Government Soap Factory was renamed as “Karnataka Soaps and

Detergent Limited” The Company was registered as a public limited company. Today

Company produces varieties of products in the toilet soaps, detergent, Agarbathies and

Cosmetics.

COMPETITORS OF KS&DL PRODUCTS AND SERVICES:-

KS&DL is facing cut-throat competition in national and international market. Some of its

main competitors are:-

M/S. Hindustan Uni Lever Ltd.,

M/S. Godrej Soaps Private Ltd.,

M/S. Proctor& Gamble

M/S. Wipro

M/S. Nirma Soaps Private Ltd.,

M/S. Jyothi Laboratories

TRADEMARK OF KS & DL:-

The “ SHARABHA ”

The carving on the cover is the sharabha, the trademark of KS & DL.

The sharabha is a mythological creation from the “puranas” which has a body of a

lion and head of elephant, which embodies the combined virtues of wisdom and strength. It

is adopted as an official emblem of KS& DL to symbolize the philosophy of the company.

The sharabha thus symbolized a power that removes imperfections and impurities.

The maharaja of Mysore as his official emblem adopted it. And soon took its pride of place

as the symbol of the Government Soap Factory of quality that reflects a standard of

excellence of Karnataka Soaps and Detergent Limited.

7

SLOGAN:-

“NATURAL PRODUCTS WITH EXOTIC FRAGRANCES”

KS & DL has a long tradition of maintaining the highest quality standard, right from the

selection of raw materials to processing and packing of the

end product. The reasons why its products are much in demand globally and are exported

regularly to UAE, Beharen, Saudi-Arabia, Kuwait, Qatar, South America. The entire toilet

soaps of KS & DL are made from raw materials of vegetable origin and are totally free from

animal fats.

POLICY OF KS&DL:-

Seek purchase of goods and services from environment responsible suppliers.

Communicate its environment policy and best practices to all its employees’

implications.

Set targets and monitor progress through internal and external audits.

Reuse and recycle materials wherever possible and minimize energy consumption

and waste.

BIRDS EYE VIEW OF KS&DL:-

1918 – Government Soap Factory was started by Maharaja of Mysore

and the Mysore Sandal Soap was introduced into the market

for the first time.

1950 - The factory output rose to 500 M.Tons with the following

modifications.

1. Renovating the whole premises.

2. Installing new boiler soap building plant and drying

chamber.

1954 – Received license from Government to manufacture 1500 tons

of soap and 75 tons of glycerine per year.

1957 – Factory shifted its operation to Rajajinagar industrial area.

1974 – Mysore sales international limited was appointed as the sole

selling agent, for marketing its products.

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1975 – Rs.4 Crores synthetic detergent plant was installed

based on Italian technology by Ballestra SPA.

1980 - On 1st October 1980 the Government Soap Factory was

converted into a public sector enterprise and renamed as

“Karnataka Soaps & Detergents Limited”.

1981 – a) Production capacity increased to 6000 tons,

b) Rs.5 Crores Fatty Acid Plant was installed.

1984 – Manufacturing of premium quality of Agarbathies at Mysore

division.

1985 – Production capacity was raised to 26,000 M.Tons Per Annum.

A large variety of toilet soaps at attractive shapes, colors and

fragrances introduced to meet the varieties & tastes of

consumers.

1992 – The company was registered with the Board for Industries

and Financial Reconstruction (BIFR), New Delhi in December

for rehabilitation, as the company suffered losses

continuously since 1980 at its net worth fully eroded.

1996 – The BIFR approved the rehabilitation scheme in September &

the Company stated making Profits.

1999 – ISO-9002 Certificate for quality assurance in production,

installation and Servicing.

2000 – ISO-14001 certificate pertaining to environmental

management system.

2003 – The entire carried forward loss of Rs.98 Crores wiped out

and in May BIFR, declared the company to be out of its

Purview. The Company is making profit continuously,

It is only State Public Sector unit that has come out of BIFR.

2004 – The ISO-9002 was upgraded to ISO-9001-2004, Quality Systems.

9

PRESENT STATUS OF THE COMPANY

The company is mainly dependent on southern market. The product availability in retail

outlets particularly for Mysore sandal soap is almost comparable to any other similar

industries products in the premium segment in the south. Whereas in other parts like Eastern

& Northern markets penetration of KSDL product is relatively poor, which depends on the

company’s distribution structure, stockiest and field personnel strength.

With increased trust on distribution, the company does not foresee any problems to achieve

the projected sales through the redistribution package.

Further, the policy of Indian Government also sees the public sector enterprises enter the

industry in a large way there by making the products available to the consumers at

reasonable prices.

Being located in the centre of southern part of India the Government Soap Factory

claims preferential treatment for expansion programmed in view of availability of exotic

natural Sandalwood oil.

AN ISO-9001 COMPANY: -

KS & DL with a tradition of excellence of over eight decades is committed to customer

delight, through total quality management and continuous improvement through the

involvement of all employees. KS&DL has got ISO 9002 certificate.

To improve the quality management system and to facilitate TQM in the process of soap

and detergent, the management took decision to obtain ISO-9002 by end of March 1999.

Accordingly action plan was drawn and a committee was set up for the purpose during

October 1998 with a mission statement.

The company gives initial training including conducting employee’s awareness programme,

document quality manual and quality system procurement.

In this direction company obtained the guidance from Consultancies, Bangalore and Bureau

of Indian Standards, Bangalore. Accordingly, company standards registered for ISO 9002

by the end of March to the Bureau of Indian Standards. Obtained the certificate by the end

of March 1999 itself.

10

This is to project in the national and international market and also to improve quality

of products offered to the consumers with the assurance of quality in the message.

The Company got itself upgraded to ISO-9001-2004, Quality Systems in the year

2004-05.

ISO-14001:-

The company is located in the heart of the Bangalore city. The management of the company

took a decision to get the ISO-14001 and become model to other public sector for the

techniques used and also to other Government units to spread the message of maintenance

of environment.

ISO-14001 and ISO-9001 will facilitate to improve the corporate brands in the global

market and it will help the company to improve the profits, year after year on long-term

basis. The environment management system adopted in the company through this motive as

follows:

Conservation of energy

Conservation of Surrounding

Conservation of resources.

Equipped with latest technology and backed by full-fledged quality control and

R&D support, KS&DL is marching confidentially ahead in the new millennium. The

Company is developing new products to meet the changing preferences of its customers.

THE BIRTH OF A LEGEND:-

The early year of the 20th century witnessed the birth of a magical formula, created from the

finest and purest sandalwood oil, better known as “liquid gold”, distilled exclusively at

divisions in Karnataka-Mysore. A fragrant gift to the world from the first Government Soap

Factory of India. Nurtured by the Maharaja of Mysore, enriched with all the goodness of

natural sandal wood oil, this unique soap captured hearts and markets at home, as well as

right across the globe creating a fragrant legacy for the state of Karnataka. Karnataka Soaps

and Detergents limited (KS&DL) is the true inheritor of this golden legacy of India.

Continuing the tradition of excellence for over eight decades, using only the best Grade

11

sandal wood oil in its product range, KS&DL today is one of the largest producers of Sandal

wood oil and sandal wood soaps in the world.

PRODUCT MANUFACTURED BY KS&DL:-

TOILET SOAPS

NAME OF THE PRODUCT UNITS OF GRAMS

Mysore Sandal Soap 75, 125

Mysore Sandal Classic Soap 75

Mysore Sandal Gold Soap 75, 125

Mysore Sandal Baby Soap 75

Mysore Special Sandal Soap 75

Mysore Rose Soap 100

Mysore Sandal Herbal Care Soap 100, 125

Mysore Jasmine Soap 100

Wave Soap 100

Mysore lavender Soap 150

Mysore Sandal bath tablet 150

Mysore Sandal classic bath tablet 150

Mysore Jasmine bath tablet 150

Mysore Special Sandal tablet 150

Mysore Sandal rose tablet 150

Mysore Sandal Guest tablet 17

12

GIFT RANGE

SBT

SJR

06 IN 01

GOLD SIXER

DETERGENTS

NAME OF THE PRODUCT UNITS IN GRAMS

Mysore detergent powder 1000

Mysore detergent powder 500

Mysore detergent Cake 125

Mysore detergent cake 250

TALCUM POWDERS

NAME OF THE PRODUCT UNITS IN GRAMS

Mysore Sandal Talc 20, 50, 100, 300

Mysore Sandal Baby Talc 100, 200, 400

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AGARBATHIES

NAME OF THE PRODUCT

Mysore Sandal Premium

Mysore Sandal Regular

Mysore Rose

Nagachampa

Suprabhatha

Mysore Jasmine

Parijata

Sir M.V.100

Bodhisattva

Venkateshwara

Durga

Ayyappa

Alif Laila

Meditation

14

PRODUCT PROFILE-

KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of

excellence for over eight decades, using only the best East Indian grade Sandalwood oil

& Sandalwood soaps in the world. The products produced at KS&DL are the Soaps,

Detergents, Agarbathies and Sandalwood oil.

PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP

a. Mysore Sandal Soap (75gm,125gm & 150gm)

b. Mysore Sandal Special Soap (75gm)

c. Mysore Sandal Baby Soap (75gm)

d. Three-In-One Gift Pack –(SJR) 3Tabs (150gm Each)

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d. Mysore Sandal Gold Soap (125gm)

e. Mysore Rose Soap (100gm)

f. Six-In-One Gift Pack- 6Tabs (150gm Each)

g. Mysore Sandal Gold sixer 6 Tabs (125gm Each)

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h. Mysore Sandal Soap Bath Tablet Trio 3nos. (150gm Each)

DETERGENTS:

KS&DL also manufactures high quality detergents applying the latest spray drying

technology with well balanced formulation of active matters & other builders; they provide

the ultimate washing powder.

1. Sensor Detergent Powder (1kg/2kg)

2. Mysore Detergent Powder (1kg/500gms)

3. Mysore Detergent bar (250gms)

4. Mysore Detergent Cake (125gms/250gms)

AGARBATHIS:

1. Mysore Sandal premium 8. Mysore sandal

2. Mysore Rose 9.Nagachampa

3. Suprabath 10.Mysore Jasmine

4. Parijata 11.Bodhisattva

5. Venkateshwar 12.Durga

6. Ayyappa 13.Alif Laila

7. Chandhana

SANDALWOOD OIL:

In 5ml, 10ml,20ml, 100ml,500ml,2kg,5kg,20kg,and 25kg packing.

POWDERS:

1. Mysore Sandal Talk: Cooling & Healing, Fragrant freshness, Net. Wt 20gm, 60gm,

300gm and 1kg.

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2. Mysore Sandal Baby Powder: Tender loving care for baby…& Mummy. Net wt

100-400gms.

AREA OF OPERATION:

GLOBAL FAVOURITES FOR THEIR NATURAL GOODNESS:

KS&DL has a long tradition of maintaining the highest quality standards, right from the

selection of raw materials to processing and packaging of the end product. The reason why

its products are much in demand globally & are exported regularly to UAE, Bahrain, /Saudi

Arabia, Kuwait, Qatar, South East Asian countries as well as North America & South

America. The sandalwood oil, of course, is much sought after by the leading perfume

houses of the world. All the toilet soaps of KS&DL are made from oils & fats of vegetable

origin & totally free from Mr. the document close the document had me out show auctions

what can I do what can I do and as exit animal fat.

OWNERSHIP PATTERN:

“Wholly owned by Government of Karnataka”.

COMPETITORS INFORMATION AND THEIR MARKET

SHARE:

HUL 70%

Godrej 4%

Procter & gamble 10%

KSDL 11%

Others 5%

PRESENT STATUS:

1. The company has entered into shampoo, dish wash, detergent bar & room refresher.

2. The company is striving to develop new perfumes for soaps detergents, agarbathies

& shampoo.

3. The company wants to improve the existing products in terms of quality.

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INFRASTRUCTURAL FACILITIES:

1. Canteen facility

2. Library

3. Car stand

4. Waiting room

WORK FLOW MODEL:

SILOS

(Silos are closed chambers)

Soaps Noodles

Container Mixer

Simplex Plodder

It becomes NOODLES

Milling

It becomes soap ribbons

Duplex plodder

Cutting Machine

Cakes are led to

Stamping Machine

Wrapping machine

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Led through the conveyor belt

ACHIEVEMENTS/AWARD:

1. Government of Karnataka

Dept of Industries and commerce

State Export Promotion Advisory Board. “EXPORT AWARD” 1974-75

2. Detergent Plant

M/s Chemical Bombay have given 1st price for the year 1980-81

3. Geographical Indication GI-2005

4. ISO 9001-2000 in the year 1999

5. ISO 14001-2004 in the year 2000

FUTURE GROWTH AND PROSPECTUS:

Introduction of anti-bacteria, herbal transparent soap, made out of 33 essential oil

based perfume, Aloe Vera, Vitamin-E etc as additive and suitable for all types of

skin and all seasons.

Improvement in existing products Mysore Sandal classic improved moisturizers &

skin conditions.

Introduction of sandalwood powder in 50gms, 100gms to meet the growing demand

for religious purpose.

Introduction of new higher powered detergent powder for institutional sales in bulk

packaging.

To attain market leadership.

Introduction of new trade schemes to increase sales.

Aggressive advertisement and publicity as part of sales promotion.

Reduction in distribution expenses.

Cost-reduction in all areas.

Instant decision making in certain procurement activities.

Timely introduction and implementation of market driven decisions.

Ensuring effective internal control.

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STRUCTURE OF ORGANISATION:

A. BASIS OF DEPARTMENTATION

KS&DL is a manufacturing concern of moderately large size. It facilitates effective

utilization of manpower and resources and it is a simple, economical and reasonable

organization pattern.

B. LEVELS OF ORGANISATION

The organization of KS&DL consists of 4 levels, they are

TOP LEVEL consisting of BOD’s and M.D

SECOND LEVEL consisting of Directors of Finance and Special officers

THIRD LEVEL consisting of senior managers, deputy managers and

officers.

FOURTH LEVEL consisting of clerks, Assistants and Attendees.

21

KS&DL AT GLANCE:-

Incorporated Name - Karnataka Soaps and Detergents Limited.

Address -

Karnataka Soaps and Detergents Limited

Bangalore Pune High Way

Post Box No.5531, Rajajinagar,

Bangalore – 560 055

Ph: 080-3377691/3370469/23371103 to 06

22376922 to 24

Email : Mysorsandal @ vsnl.com

Website : www.mysoresandal.com

Year of Establishment - 1918

Constitution - Wholly owned by Govt. of Karnataka

Undertaking

Management - Govt.of Karnataka nominates/appoints

Board of Directors. Chairman & MD

Renamed - 1980

Trademark - The trademark is SHARABHA. It is the

Body of lion with the head of an

elephant means blending the

intelligence of lion with strength of an

elephant.

Production range - Toilet soaps, bar soaps, Detergent Cakes,

Powders, Agarbathies, Cosmetics,

Baby products, Sandalwood Oil.

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Process know how - The facility is a pioneer in the

Manufactures of various soaps and

technology Imported from Italy.

Capacity of the Unit - Licensed capacity is 26,000 metric

tons of Soaps & 10,000 M.Tons of

Detergents Per annum

Plants - At Bangalore

Soap Plant

Detergent Plant

Fatty Acid Plant

- At Mysore

Sandal wood Oil

Agarbathies

- At Shimoga

Duty Paid Godown

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McKinsey’s 7S Framework

According to Waterman, organization change is not simply a matter of structure, although

structure is significant variable in the management of change. Again it is also not a simple

relationship between strategy and structure, although strategy is also a critical aspect. In

their view effective organizational change may be understood to be a complex relationship

between strategy, structure, system, style, skills & shared values. The first three elements-

strategy, structure &system are considered the “hardware” of success. The next four – style

skills, staff, and shared values are called the “software”. The complex relationship is

diagrammatically presented below;

C .ORGANIZATION CHART OF KS&DL

KS&DL is Functional type of organization. Under this type of organization men with

special abilities in a specialized function are employed. The hierarchy is represented as

follows.

24

25

STYLE OF MANAGEMENT:

Decision-making is centralized with the head office. Authority is given to unit

in-charge to take decision in day-to-day minor matters & other urgent matters.

Decision-making depends on the authority & responsibility conferred on each

individual & thus it’s distributed based on designation & position held.

In important matters, meetings are held to seek opinions of top management &

various department manager & the decisions are taken & implemented.

Decision-making is co-ordinate & done with wide consultations of top management

or department manager’s consultation which gives best possible gains.

STRATEGY:

Strategic planning is about asking questions, more than attempting to answer them.

Strategy formulation entails a search for a different frame of reference. It is the quest for a

new business paradigm. There are two types of paradigms that apply to management,

namely the business and the organizational or managerial paradigms. The business

paradigms define a company’s position in the market place with respect to customers,

technology and products.

Strategy is a choice of direction and action; the company adopts to achieve its

objectives in a competitive situation. Any statements on overall of functional strategy that

the company may wish to share are:

Improvement in the existing products.

Their future plans include launching of new products.

The cost control exercise is in consolidation.

Introduction of cost effective substitutes without compromising on quality

Development of new perfumes, soaps detergents, Agarbathies, creams and

shampoos.

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FUNCTIONAL DEPARTMENTS OF KS&DL

Human Resources Department

Production Department

Marketing Department

Finance\Accounts Department

Research & Development Department

Stores Department

Welfare Department

Maintenance Department

Materials Department

Management Information System Department

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3.1 HUMAN RESOURCE DEPARTMENT:

STRUCTURE OF HRD DEPARTMENT

01 M.D Managing Director

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MANAGING DIRECTOR

ASST.GEN.MGR [HRD]

MGR [HRD]

OFFICER [HRD]

SENIOR ASSTS

JR. OFFICER

ATTENDER

TIME OFFICE

LWO

CANTEEN

JR.OFFICERS

SR.ASSTS.

ATTENDER

ASST.MGR

JR.OFFICER

SR.ASSTS

Cooks

Helpers

FIRST AID

VMO

SR.ASST.

HELPER

02 Asst.Gen.Mgr Assistant General Manager [HRD]

03 Mgr [HRD] Manager [HRD]

04 Asst.Mgr [Canteen] Assistant Manager [Canteen]

05 LWO Labour Welfare Officer

06 VMO Visiting Medical Officer

07 Officer [HRD] Officer [HRD]

08 Jr.Officer [HRD] Junior Officer [HRD]

09 Sr.Asst.s Senior Assistants

10 Attainder Attainder

11 Cooks Cooks

12 Helpers Helpers

Luther Gulick highlighted “POSDCORB” which stands for planning organizing, staffing,

Directing, Coordinating, Reporting & Budgeting is the part of personnel management.

Personnel management performs lot of function in KSDL.

1. Recruitment

2. Implementing.

3. Training

4. Cordial relationship of Industry

5. Disciplinary matters

6. Performance appraisal

7. Employee safety etc

KEY FUNCTIONS OF THE HRD:-

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1) Recruitment and Selection

2) Training and Development

3) Promotion and Transfer

4) Wages and salary administration

5) Performance Appraisal

6) Industrial Relations

7) Disciplinary Action and

8) Welfare Measures

Cordial relation with Trade unions:

KSDL is trying its level best to ensure healthy & cordial relation with trade unions in all

matters regarding industrial disputes & employee satisfaction.

Personnel management is act as a mother as it ensures people are treated perfectly well &

widening the scope of the employees.

MAN POWER DETAILS:

GROUP BangaloreSOD

Mysore

Marketing

branches

Duty paid

Godown

Shimoga

Total

Executives 85 07 56 02 150

Supervisors 49 10 15 - 74

Workers 548 30 39 16 633

Total 682 47 110 18 857

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FRINGE BENEFITS PAYABLE TO THE UNIONIZED CADRES

EMPLOYEES

1. Shift Allowance: There are three shifts and one general shift. The office

hour is from 9.30am – 5.30pm. The shift timings are as follows:

First Shift 6.00am to 2.00pm

Second Shift 2.00pm to 10.00pm

Third Shift 10.00pm to 6.00am

General Shift 7.30am to 3.30pm

The lunch time is from 12.00pm to 12.30pm. Every Sunday is rest day for the

employees. No allowance is paid to the first shift workers; a sum of Rs.25 and Rs.35 per day

is paid to workers for second and third shift respectively.

2. Washing Allowance: The company provides two sets of uniform once in a year.

For this a washing allowance of Rs.50 per month is paid to every worker.

3. Leave: The company provides:

Earned Leave (EL): Workman who wishes to avail privilege leave shall

apply at least 3 days in advance to General Managers. This leave can be

accumulated and encased. 18 days EL is credited to an employee. It can be encased

and for this purpose the basic+ DA to the employee is calculated for 26 days but

paid for 15 days in a year.

Casual Leave (CL ): The leave is to meet unforeseen circumstances and is

granted for 3 days at a time and 7 days CL is given to an employee per year.

Sick Leave (SL): Workman who avails sick leave exceeding 3 days at a

time should produce medical certificate from Doctor. 15 days of sick leave is given

for an employee per year and it can be encashed.

4. Conveyance Allowance : The conveyance allowance of Rs.680 per month per

workman is extended.

31

5. Special Allowance : Paid to Typists, Stenographers, Asst.Cashiers, and Store

Keepers from Rs.55 to Rs.75.

6. Family Travel Allowance: This allowance is paid at the rate of Rs.500 per

employee per year who has put a minimum three years of service.

7. Canteen Facilities : All employees are provided with canteen facility at highly

subsided rate.

8. Annual Bonus : It is agreed to pay the profit sharing bonus in terms of the

provisions payments of Bonus Act 1965.

9. Attendance Bonus : It is paid equivalent to one day’s basic pay subject to

minimum of Rs.75 per month.

10. House Building Advance (HBA), House Repair Advance, House Purchase

Advance: KS&DL has agreed to provide subsidy on the loan amount secured by

the employee from HDFC or any recognized financial institutions viz., co-

operative banks, scheduled

banks etc., If the interest payable by the employee exceeds 7% then he shall be

eligible for interest subsidy to be borne by the company not exceeding 5%.

11. Festival and National Holidays : Number of paid holidays in the company is 10

festival holidays and 3 national holidays per calendar year. 2 holidays will be

treated as restricted festival holidays to be selected by the employees from the list

of holidays to be notified by the company for this purpose.

12. Death Relief Fund : Rs.30,000 will be paid to the nominee in case of death of an

employee.

32

13. Memento to retiring employee : Rs.2,500 will be paid as memento to retiring

employees.

14. Medical Reimbursement: Benefit to non-ESI employees a sum of Rs.500 per

month will be paid per employee towards domiciliary treatment. With regards to

hospitalization treatment, the company has taken mediclaim policy from Insurance

Company for a sum of Rs.1,50,000 per employee, which includes spouse and two

children.

15. Postponement of Increment: Postponement of the annual increment

automatically in respect of the employees who are absent without pay

corresponding to the period apart from taking disciplinary action as per provisions

of standing orders

Units Postponement of increment by

Absence without pay for more than 30

days less than 40 days.

One month

Absence without pay for more than 40

days less than 70 days.

2 months

Absence without pay for more than 70

days less than 100 days.

3 months

33

PAY SCALE OF UNIONSED CADRE EMPLOYEES

W.E.F. 01.05.2008 TO 30.04.2013

SI.NO

GroupRevised Pay Scale

01 I 5140-110-5690-140-6390-170-7240-200-8240

02 II 5250-110-5690-140-6390-170-7240-200-8240-240-9440

03 III 5690-140-6390-170-7240-200-8240-240-9440-280-10840

04 IV 5970-140-6390-170-7240-200-8240-240-9440-280-

10840-330-12490

05 V 6110-140-6390-170-7240-200-8240-240-9440-280-

10840-330-12490-400-14490

06 VI 6390-170-7240-200-8240-240-9440-280-10840-330-

12490-400-14490-500-15990

07 VII 7240-200-8240-240-9440-280-10840-330-12490-400-

14490-500-17990

08 VIII 8240-240-9440-280-10840-330-12490-400-14490-500-

17990-600-19190

34

PAY SCALE OF OFFICERS

W.E.F. 01.07.2008

I.NO Designation Revised Pay Scale

01 Jr. Officer 10000-100-10500-300-12300-350-14400-400-

16800-450-18150

02 Officer 10800-300-12300-350-14400-400-16800-450-

19500-525-20025

03 Asst. Manager 14050-350-14400-400-16800-450-19500-525-

22650-600-25050

04 Manager 18150-450-19500-525-22650-600-26250-675-26925

05 Asst. Gen. Manager 20025-525-22650-600-26250-675-28275

06 Dy. Gen. Manager 22125-525-22650-600-26250-675-30300

07 Gen. Manager 24450-600-26250-675-30300-750-31800

08 Director 26250-675-30300-750-34800-850-36500

35

THE COMPANY HAS FORMULATED THE FOLLOWING HR POLICIES:

1. Carrier Development Plan and Promotion Rules for Officers.

2. Time Bound Advancement Scheme for Unionized Cadre employees.

3. Standing orders applicable to Unionized Cadre employees.

4. KS&DL Conduct and Disciplinary Action Rules 1984 for Junior Officers and above.

5. Medical Attendance Rules.

6. Leave Rules with encashment benefit.

7. LTC / FTA.

8. Conveyance Allowance.

9. Education Advance.

10. Festival Advance.

11. TA / DA Rules.

12. HBA / Interest Subsidy.

13. Delegation of Powers.

14. Probationer’s Rules.

15. Annual Increment.

16. Incentive for adopting small family norms.

PROMOTION

In the company the Promotional Policy has twin objectives because the career planning

is also included.

Ensure high level of expertise and professionalism.

To create certain degree of mobility and job rotation.

The employees below the rank of officers i.e. unionized cadre of employees are

eligible for the promotion after satisfactory completion of seven and five years of

service [Time Bound Advancement Promotion]. The promotion is based on their

grading obtained in the performance done by their Supervisors.

The promotional policies for the officers divided into two categories. They are

Career Development Plan (CDP) and Vacancy Based Selection (VBS).

36

CAREER DEVELOPMENT PLAN: Officers from Grade I to IV come under this

plan. The ingredients of this plan are given below:

Eligibility: Is a minimum of five years of service.

Selection: Is done through staff selection committee.

Mode of selection: Is done through interview conducted by Staff Selection

Committee once in a quarter.

Final selection: Of the maximum of 100 marks earmarked for selection 70

marks is allotted to the performance in the present

grade and the remaining 30 marks are allotted to the performance in the VIVA

during the interview by the Staff Selection Committee. Out of the weight age,

the individual has to score a minimum of 35 from the 70 performance marks and

15 from the VIVA marks to get the final selection.

VACANCY BASED SELECTION: Officers from Grade-V and above come under

this plan. The promotion is effected only when there is a vacancy. The eligibility criteria

is a minimum of five years in the present grade and due weight age is given to

experience and qualification.

37

3.2 PRODUCTION DEPARTMENT:

STRUCTURE OF PRODUCTION DEPARTMENT

KSDL has 3 main production plants:

Fatty Acid Plant

Soap Plant

Detergent Plant

38

Senior Manager

Manager Manager Manager

Deputy Manager

Works Manager

Senior Engineer

Engineer

Workers

General Manager

Fatty Acid Plant:

The basic raw materials, Oil & fats undergo the splitting & refining process including

hydrogenation at the fatty acid plant.

It is also obtained & used for soap making. The plant has a capacity to process 10,000mt of

oils 1 fat. But currently it is been stopped due to heavy operating cost.

Soap Plant:

The soap plant is one of the largest production plants in the country with an installed

capacity of 26,000 ton per annum.

KSDL’s soap plant has its uniqueness been in a position to process as many as ten different

varieties of soap simultaneously. The sophisticated plant from Italy has a wholly integrated

straight line facility that links up process sequence for higher productivity.

It is a stream line flow through right from raw material preparation to end of the line

collation with the built in facility for continuous fat bleaching & saponification. The

finishing touches are given or high tech universal wrapping machine. This high speed auto

wrapper has the capability to handle soaps of virtually & size or shape.

Detergent Plant:

It has installed capacity of 10,000 ton per annum. To produce spray dried, powder & a

syntax plant for detergent cakes & bars. It produces industrial detergent which is used in the

formulation of wettable pesticide powders for crop protection

39

3.3 MARKETING DEPARTMENT:

The company main products are soaps & detergents which are sold in different parts of

India. There are depots at various places of the country which are controlled by seven

branches. The role of each branch is to ensure that sales activities coming under their

control.

Branch Depots

1. Bangalore Hubli, Raichur

2. Chennai Madras, Salem, Madurai, Cochin

3. Hyderabad Hyderabad, Vijayawade, Ananchapur

4. Mumbai Bhiwandi, Ahmedabad, Pune

5. Kolkatta Cuttack, Patna, Gauhati

6. Delhi Delhi, Jaipur, Jullundur

ORG: Operational Research Group report main source of marketing research private

agency which study the competitors consumer demand, market etc that generates the report.

40

ORGANISATION CHART OF MARKETING DEPARTMENT

41

DGM(MKTG) DGM(MKTG)

AGM (Adv &Soaps)AGM (Adv &Soaps) AGM(BB), (CHE),(HYD)AGM(BB), (CHE),(HYD)

PM(Det&Agb)PM(Det&Agb)

PM(CFGS)PM(CFGS) M(MRIS)M(MRIS) M (S) M (S)

AM (CFGS)

AM (CFGS)

AM (Mktg)

AM (Mktg)

AM (MRIS)

AM (MRIS)

AM (S)

AM (S)

Off (CFGS)Off (CFGS) Off (S)Off (S)

Jr OfficerJr Officer Jr OfficerJr OfficerJr OfficerJr Officer

Sr Asst Sr Asst Sr AsstSr Asst Sr AsstSr Asst

Jr Asst Jr Asst Jr AsstJr Asst Jr Asst Jr Asst

MD

AM (Mktg)

AM(A)

Off (A)

Sr Asst

Jr Officer

Jr Asst Jr Asst

CHAIRMEN

CHANNELS OF DISTRIBUTION:

KSDL manufactures their products i.e. soaps & detergents. After this sent to various

distribution points through agents. The stockiest sells to various retailers hence it reaches to

the consumer

As the company markets their products, it ensures that there is proper description of their

product & its distinct features. So that the consumer can be position to understand its

components.

42

Manufacture (KSDL) CFGS

Consumers

Retailer

RD's Stockiest (Wholesalers)

C&FA (Godown)

EXPORTS:

KSDL export their products to different parts of world they are:

Australia Italy Srilanka

Berlin Kenya USA

Canada Malaysia Japan

Czechoslovakia Saudi Arabia UK

France Singapore Taiwan

Germany Africa Holland

STRUCTURE OF EXPORTS DEPARTMENT

43

DGM

Manager PA

Asst. Manger

Jr.Officer

Sr. Assistant

Attender

FUNCTIONS OF MARKETING DEPARTMENT:

1. Marketing Mix : it is the policy adopted by the manufactures to get success in the

field of marketing

2. Product Policy: It includes both the turns of development & improvement produced

and existing products. This all totally done by KSDL both marketing & R & D

department.

3. Distribution Policy: The manufactured product of KSDL is supplier to the factory

depots. There are various depots in various states & stored there.

4. Sales & Promotion: the drawback is poor advertising & sales promotion.

5. Packing: Uses different materials for different products, card board boxes synthetic

covers.

6. Market Share: The KSDL production strategy is more expensive when compared to

other product. At present company, holding market share of 18% in south India &

8% throughout India basis for premium soaps.

44

3.4 FINANCE, ACCOUNTS, AUDITING DEPARTMENTS

FINANCE DEPARTMENT STRUCTURE:

A/Cs C E

45

Managing Director

General Manager (Finance)

DGM (F)

Bills Section Costing Section

AGM (F) / A/Cs/Audit/CE I/C

JR.Officer

Supr(A/C’s)

JR.Asst.

PA to GM (F)

SR.Asst

Chief Mangaer (V)

SR.Asst.

SR.Asst. SR.Asst. Officer

Supr(costing)

JR.Officers (3)

AM (PR&PF)

JR.Officers

JR.Asst.(V)

SR.Asst.

SR.Asst.(1)

JR.Asst.

JR.Asst.

FINANCE:

It is the life blood of every organization. It is concerned with managerial decision making.

This department is concerned with proper utilization of cash. It identifies the source of

finance where to borrow i.e. ICICI, IRBI, IDBI, Corporation bank etc.

It has abundant of function which can be enumerated as follows:

Effective funds management which is inverted in beneficial projects.

Decision making regarding fixing of cash account.

Obtaining trade credit.

Profit Maximization.

Wealth Maximization.

Preparation of cash budgets.

Systematic approach to working capital management.

Pricing of raw materials & valuation of stores.

To protect financial interest of the company.

AUDIT DEPARTMENT:

KSDL audit wing is headed by interval auditor. Auditing is vital for the company as it

facilitates verifying of all the books of a/c by trial balance, it also comply with requirements

for central excise & income tax purposes.

After the Auditor’s monitor everything they give report which is helpful to the company.

COSTING:

When a company does costing it ensures proper fixation of selling price of the product, cost

control it also help in taking decision.

KSDL use process costing as the production mechanism is systematic it involves addition of

a lot of ingredient in the manufacturin

46

TURNOVER FOR THE LAST 5 YEARS

47

YEARS Rs in Lacks

2004-05 10179.71

2005-06 11092.11

2006-07 11958.03

2007-08 14552.85

2008-09 16939.19

PROFIT DETAILS FOR THE LAST 5 YEARS

YEARS PBT PAT

2004-05 -267.9 -267.9

2005-06 236.79 178.79

2006-07 433.57 358.56

2007-08 1179.35 1203.86

2008-09 1170.85 1168.14

48

3.5 RESEARCH DEVELOPMENT & QUALITY CONTROL

KSDL its full fledged quality control & R&D single mindedly pursue quality enhancement.

Both departments are headed by highly qualified professionals, committed to developing

products that keep place with customers changing needs & perceptive.

When doing Research they have a target which they get benefits & it enables the company

to forecast the future.

AIMS:

Product process development.

Product process improvement.

Cost reduction

Alternative raw materials

Slow moving & non moving inventory reduction

Technical advice to the management.

Quality plays a very important role in KSDL majority of the products are consumer goods.

So it must satisfy the consumer expectation.

KSDL as 2QC division

Raw material QC division

Production QC division

OBJECTIVES OF R&D:

To improve the existing production

To adopt new methods of product development

To provide technical support for marketing department

To make improvement in the process of production

To administer & maintain technical library

49

3.6 STORAGE DEPARTMENT:

In KSDL there are about 8 stores namely:

1. Packing Materials

2. Engineering Goods

3. Perfumery Stores

4. Oil & Fats Stores

5. Detergent finished goods stores

6. Fuel & Serviceable stores

These stores play a great role in maintaining of required stock. It also facilitates

maintenance of suitable store organization structure. It monitors the procedures of the

receipt. Materials are issued on the basis of FIFO.

STRUCTURE OF STORAGE DEPARTMENT

KS&DL has well- managed stores department for each of the three divisions viz, soaps,

detergent & fatty acid division in the factory, there are separate miscellaneous stores

department for raw material, finished goods and tools.

Objectives;

Assuring the availability of raw material at right quantity.

Maintenance of economical and uninterrupted flow of production activities and

finally to ensure minimum blockage.

Achieving maximum efficiency in production and sales with least investment in

inventory.

50

Manager

Ast.Manager Officer

Sr. Assistant 1

Sr. Assistant 2

Jr. Assistant

3.7 WELFARE DEPARTMENT:

KSDL welfare department can be classified into 3 sections namely,

1. Statutory

2. voluntary

3. Non statutory

a) Statutory :

KSDL welfare association is based on employees contributions, interest carved.

Canteen facility

First aid

Provident Fund

b) Voluntary benefit :

workers education class conducted by the central board

Inspection of fittings

Dust nuisance

Toxic gas nuisance

c) Mutual :

Employees get 3 pair of uniform at every 2 years & a Pair of shoes for

every year

Cultural Recreations

Leave facilities

Employees Co-operative society which give loan on credit

Employees house building society.

51

3.8 MAINTENANCE DEPARTMENT:

Effective maintenance is the goal of the company. The areas of maintenance are:

Mechanical Maintenance

Electrical Maintenance

Civil Maintenance

Proper maintenance results to:

Reduction of overload

Cost Reduction

Greater Safety of equipment & workers

Delivery schedule is maintained.

This department contributes also working progress of the company.

52

DGM

Manager (civil) AGM (Electrical) AGM(Machinary)

Contract based employees

Manager

Jr.Officer

Fitters&helpers

Workers

Charge mans

Manager

Jr.Officer

Charge mans

Workers

Fitters&helpers

3.9) MATERIALS DEPARTMENT:

METERIALS DEPARTMENT STRUCTURE

53

CHAIRMEN

MD

DGM(Materials&stores)

MANAGER(Packing)

AM (Engg/Misc)

Jr. OFFICER (Packing)

Jr, ASST Jr, ASST

Sr. ASST(Perfumery)OFFICER(Che/Oils)

Sr. ASST (Oils/Che)

Sr.ASST(Misc)

Jr, ASST WORKERS

Material department ensures that Materials are obtained at right time, right quality at right

place from right source &at right cost which leads smooth flow of production.

Objectives:

Maintaining continuity of flow of materials

Effective control of inventories

Coordination

Growth of the organization

Maintaining ethical organization

To meet the objectives of the departments it has been divided into 5 sections:

Oil & fats section

Perfumery & aromatically section

Packing materials section

Chemical section

Miscellaneous & Engineering stores section

The important work of this department is to choose the materials and conducting the

auctions for purchasing of materials.

54

3.10) MANAGEMENT INFORMATION SYSTEMS DEPARTMENT:

A. Accounting System:

Financial statements are prepared under the historical cost convention on an accrual basis

and comply with the accounting standards refer to sec 211 (3c) of the companies Act 1956.

B. Costing System:

Process costing.

C. Inventory Control System

ABC analysis for stock control.

FIFO method for issuing materials.

Computerized accounting system for stores.

D. Remuneration System:

1. Time rate system is followed to employees.

2. Government fixes the remuneration to executives

E. Performance Appraisal System:

Confidential report is prepared by heads of various departments for systematic judgment of

the subordinate by authority to assess the standard of work & overall performance.

55

OBJECTIVES OF KS & DL: -

To serve the national economy

To attain self – reliance

To promote and uphold its image as symbol of traditional products

To promote purity and quality products and thus enhance age old – charm of

Sandalwood Oil

To build upon the reputation of Mysore Sandal soap based on pure sandal oil.

To maintain the brand loyalty of its customer.

To supply the products mentioned above at most reasonable and competitive rate.

VISION STATEMENT:-

Keeping pace with globalization, global trends and the state’s policy for

using technology in every aspect of governance.

Ensuring global presence of Mysore Sandal products while leveraging its

unique strengths to take advantage of the current technology scenario by

intelligent and selective diversification.

Secure all assistance and prime status from Government of India, all

technology alliances.

Making all out efforts to achieve reasonable profits.

Most importantly to earn the invaluable foreign exchange, both to the state

and to the country.

MISSION STATEMENT:-

To serve the National economy.

To attain self-reliance.

To promote purity & quality products

To maintain the Brand loyalty of its customers.

To build upon the reputation of Mysore sandal soap based on pure sandal oil.

56

SWOT ANALYSIS

STRENGTHS

The factory is located in the heart of the city & has all infrastructure facilities,

which helps in quick movement of raw materials & finished products. Due to

its proximity, habitation, movement of men and material are easy.

It is fully owned by Govt. of Karnataka so in times of financial crisis it can

easily get the financial support from government.

A very little competition for its major products sandal soap.

An ISO 9002 certified company has its own brand image.

An ISO 14001 company, which commits to reserve the natural environment in

the production of its quality products to the satisfaction of its customers.

Diversified product range keeps the company stable.

Abundant availability of raw materials at present.

57

WEAKNESS

Excessive labor force has increased the operating cost.

Low turnover resulting in low profits.

Defective marketing strategy lacks effective advertising and publicity.

Technology used for production is old and needs up gradation.

R&D is not effective in reducing the cost of production.

The large proportion of the target area is upper middle class and upper class people, it

has very few offers to lower middle class.

Unskilled labor force hampering the growth.

OPPORTUNITIES:

1. The toilet soap and the detergents market is an ever expanding industry and a major

company like KS& DL with its manufacturing expertise can grab the market if it

reaches peak manufacturing capacity.

2. Company has a great opportunity to expand its market share by increasing exports.

3. At present it has Good raw material sources to enhance production.

THREATS:

1. Competition from other global leaders like HUL.

2. Government interference may reduce growth potential.

3. Company has the threat of facing shortage of raw materials like sandal wood.

58

FINDINGS:

It is a company wholly owned by government, so it has to follow the rules made

by the government.

The company is under utilizing its capacity.

Its production is based on old technology, which leads to more wastes in the

production process.

Consumer awareness of its products is very less except for Mysore Sandal soap.

Its products are not easily available outside Karnataka.

There is mismatch in production & sales activity.

Recruitment in the company has been stopped since 1988 due to excess labor

force and taking place only in some department like marketing.

SUGGESTIONS & RECOMMENDATIONS:

Karnataka Soaps and Detergents Ltd, has a wide variety of products but people are unaware

of many products like Agarbathi, Detergents, Baby soaps etc. as its marketing is very weak.

So it should spend both money and man power on advertising. They should also improve in

building up the strong marketing strategy in order to improve the distribution channels and

could be able to increase the sales other then the Mysore Sandal soap.

Thus the R&D should work effectively to introduce new products and can make the

company to earn more profits. The management should design Training and development

programs and Career Development programs and identify the skills and knowledge. The

company should follow the policy of right man for the right job. Since they are not doing

any recruitments from outside, options available for them is limited. So they have to appoint

well qualified innovative people to take the company forward.

59

Books referred:-

1. Accounting for managers ,

Author: khan, jain and narang

Edition:

2. Production and Operations management

Author:K. Ashwathappa and K.Shridhar Bhat

Edition:

3. Marketing management .

Author : Philip Kotler.

Edition : 12th Edition.

4. Human Resource Management

Author:

Edition:

Website

www.mysoresandal.co.in

www.wickipedia.com

60

ANNUAL REPORT OF KSDL

Operational performance

Production :-

Total – Rs. 17,460.20 lakhs as against Rs. 14256.86 lakhs in the previous year

SI

No

Class of Goods

Actual production in metric tons

2008 – 09 2007 – 08

01 Soaps 7199.810 6452.917

02 Detergents 2814.466 1871.497

03 Sandal wood oil 1.068 1.152

04 Agarbathies 245.095 208.661

05 Talcum Powder 162.198 158.536

Sales :-

Gross = Rs. 19,006.53 lakhs as against Rs. 16,247.74 lakhs and

Net = Rs. 16,939.19 lakhs as against Rs. 14,552.85 lakhs in the previous year.

SI

No

Class of Goods

Sales (Rs. In Lakhs)

2008 – 2009 2007 – 2008

Quantity in

M tons

Value Quantity in

M tons

Value

01 Soaps 7555 14,808.29 7097 13,006.38

02 Detergents 2813 914.96 2007 577.54

03 Sandal wood oil --- 28.37 --- 28.63

04 Agarbathies 395 588.88 20 6 578.65

05 Talcum Powder 170 262.61 181 323.77

06 Other

TOTAL

--- 336.08

16,939.19 ---

37.88

14,552.85

61

PROFIT & LOSS ACCOUNT FOR THE YEAR

ENDED 31 ST MARCH 2009

PARTICULARS AMOUNT

Rs. Rs.

INCOME

Sales 1,69,39,19,368

Less: Excise duty 16,02,15,837

Net sales 1,53,37,03,531

Other income 6,06,23,797

1,59,43,27,328

Increase/(-) Decrease in stock 7,03,74,213

1,66,47,01,541

EXPENDITURE

Materials Consumed(include trading items)

801928343

Other Expenditure 73,44,42,910

Depreciation 39,69,038 1,54,03,40,291

Operating Profit /Loss 12,43,61,250

Less: Interest and Finance Charges 72,76,261

PROFIT BEFORE TAX 11,70,84,989

Less: Provision for Taxation

(i) Current Tax 1,85,00,000

(ii) Fringe Benefit TaxDeferred Tax Asset

21,28,8282,03,58,318

PROFIT AFTER TAX 11,68,14,479

Prior Period Income /(-)Expenditure

1,40,78,609

Tax of earlier year ----

13,08,93,088

Profit/Loss brought forward previous year

13,68,26,041

Profit /Loss Carried to Balance Sheet 26,77,19,129

62

The Company earned EBIT (operating profit) of Rs. 4,80,05,540. The profit for the

year before tax (EBT) has been Rs.4,33,57,146. The Net Profit (after providing tax)

carried over to Balance Sheet was Rs. 1,50,70,294.

BALANCE SHEET AS ON 31 ST MARCH 2009

PARICULARS 31/03/2009 31/03/2008

Rs. Rs. Rs. Rs.

SOURCES OF

FUND:

1. Share holders

Fund:

(a) Share Capital 31,82,21,000 31,82,21,000

(b) Reserves &

Surplus

26,77,19,129 ----

2. Loan Fund:

(a) Secured Loan 10,72,04,608 1,03,65,536

(b) Unsecured

Loans

8,35,06,504 19,07,11,112 8,99,95,436 10,03,60,972

TOTAL 77,84,20,599 55,54,08,013

APPLICATION

OF FUNDS:

1. Fixed Assets

(a) Gross Block 30,96,23,620 29,61,06,154

Less:

Depreciation

23,98,47,860 23,70,50,829

(b) Net Block 6,97,75,760 5,90,55,325

2. Investment 100 100

3.Deferred

Tax Assets

5,25,04,866 3,21,46,548

63

4. Current assets

Loans &

Advances

(a) Inventories 40,74,52,487 29,60,12,822

(b) Sundry

Debtors

16,35,29,618 14,63,46,670

(c) Cash & Bank

Balance

25,51,32,910 33,43,85,423

(d) Loan &

Advance

21,52,57,572 10,49,44,640

(e) Investment

In gratuity trust

5,00,00,000 1,09,13,72,587 3,00,00,000 91,16,89,555

Less: Current

Liabilities

& Provisions

(i) Liabilities 24,66,50,794 30,87,52,365

(ii) Provision 20,49,56,560 45,16,07,354 16,67,70,640 47,55,23,005

Net current

assets

63,97,65,233 43,61,66,550

5. Miscellaneous

Expenditure

1,63,74,640 2,80,39,490

6. Profit & loss

Account -----

--------

Total 77,84,20,599 55,54,08,013

64

65