KSIE os

CHAPTER – I

INTRODUCTION.

Institute of Management in Kerala, Varkala1 | P a g e

The organization study is with the interaction to assess and acquire knowledge

regarding the functional as well as the managerial aspects. The main purpose of the

study is to familiarizes with the industrial practices and attain a firsthand experience

of the functioning of the organization. It provides a chance to interact with the

different departments and authorities in the organization. For this a study has been

conducted in KERALA STATE INDUSTRIAL ENTERPRISES LTD, KSEL

Vazhuthacaud, Thiruvananthapuram. This study is oriented towards understanding,

how theory is applied in practice, by interactions with the various departments in that

organization

Kerala State Industrial Enterprises Limited (KSIE) was set up in 1973 as a

Holding Company of the Government of Kerala under the Industries Department.

KSIE was formed to revive and nurse the sick units under the Industries

Department. KSIE was appointed as the custodian of the Air Cargo Complex at

Thiruvananthapuram Airport in 1979 by Govt. of India. Later on, KSIE extended its

operations to Kochi and Kozhikode Airports during 1985 and 1995

respectively. KSIE is successful in establishing, managing and efficiently operating

the Three Sales Emporia located at Thiruvananthapuram, Kochi and Kozhikode.

As part of expansion of Trading, the Company has stepped into e-business by

hosting its own e-com portal which also provides opportunities for small and medium

size business firms to join this venture as “partners in progress”. The E-com portal of

the Company” is the first of its kind in Kerala with online payment facility. KSIE is

also functioning as the Virtual Office of Agricultural & Processed Food Products

Export Development Authority (APEDA), Ministry of Commerce. Government of

India has appointed KSIE as the Virtual Office of APEDA in for Kerala.“Kerala

Soaps” the only manufacturing unit of KSIE was inaugurated on 1st January 2010 at

Vellayil, Kozhikode.

Kerala State industrial Enterprises Limited has launched our dream project –

Cochin International Container Freight Station (CICFS) at Eloor, Kalamassery on

25thJanuary 2011. KSIE is one of the State PSUs, running on profit and paying

dividend to the Government consecutively for the last 10 years. During the financial


year 2010-11, the Company has registered a net profit of 410.70 lakhs and paid a

dividend of Rs.42 lakhs to the State Government.

1.1 OBJECTIVES OF THE STUDY

To study the entire functioning of the organization

To understand the functions of different departments in the organization

To analyses strength, weakness, opportunity and threat of the organization

To acquire knowledge about the company

To relate theory with practice

1.2 METHODOLOGY

1.2.1 Primary data:

Collected through observation

Collected from Direct Personal Interviews with selected personnel.

1.2.2 Secondary data:

The sources of secondary data are Company website, Government reports,

Journals, Company records, Periodicals and Published reports of KSIE

1.3 SCOPE OF THE STUDY

The study was undertaken to get a clear cut idea regarding the functioning of

the organization. The study covers the entire functioning of the organization, the

activities of different departments, the co-ordination among the departments etc. Also

the study helps in bridging the gap between the theory and practice of management.

Thus the significance lies in knowing things really as it is.


1.4 LIMITATIONS

Limited time was a major constraint. As the time allotted for the study was

only one month, detailed study was not possible

Since the managers of different departments were engaged in various projects,

the collection of data through interviews was a bit difficult

Employees were not able to spend time due to their work adjustments

Because of official confidentiality, some of the details were not obtained. This

made some difficulties during the time of analysis

1.5 CHAPTERISATION

Chapter I :

Gives an introduction to the study. This chapter includes objectives of

the study, scope of the study, methodology and limitations of the study.

Chapter II :

Deals with the industry profile.

Chapter III :

Deals with the company profile of KSIE.

Chapter IV :

Outlines the organization structure and overall set up of the company,

the purpose of this chapter is to give a good picture of the company & its

structure.

Chapter V :

Deals with the departmental details of KSIE. This chapter discusses the

structure, duties and responsibilities of each department of KSIE.


Chapter VI :

Presents SWOT analysis, and PESTLE analysis of the company.

Chapter VII :

Deals with the findings, suggestions & conclusion of the study.


CHAPTER-2

INDUSTRY PROFILE


2.1. SERVICE INDUSTRY

The tertiary sector of industry is one of the four main industrial categories of

a developed economy, the others being the secondary industry (manufacturing),

primary industry (extraction such as mining, agriculture and fishing), and (quaternary)

the sharing of information. Services are defined in conventional economics literature

as “intangible goods”

The tertiary sector of industry involves in the provision of services to business

as well as final consumers. Services may involve the transport, distribution and sale of

goods from producer to consumer as may be happen in wholesaling and retailing, or

may involve the provision of a service, such as in pest control or entertainment.

Goods may be transformed in the process of providing a service, as happens in the

restaurant industry or in equipment repair. However, the focus is on people interacting

with people and serving the customer rather than transforming physical goods.

Industries and Services have acted as twin engines propelling overall growth

in an economy. They are attracting large inflow of capital and foreign investments

into the country from all over the world. They play a vital role in accelerating socio-

economic development of a nation, thereby providing several categories of goods and

services (both tangible and intangible) and catering to the diverse needs of the masses.

These sectors are the largest generator of employment opportunities in the country

and a facilitator of trade and commerce with other countries. In other words, besides

agriculture, they are the basis of almost all the major policy initiatives, and schemes

as well as programmers and plans, both at the National and the State level.

Services sector has always been an attractive investment option for the

corporate world. It has facilitated the creation of several infrastructural facilities in the

country as well as enhanced the productivity of various industries. It not only helps in

economic upliftment of the society, but also promotes political and social well being

among the masses. The service industry comprising of information technology (IT),

education, health, media tourism etc. helps to shape the peoples opinion about various

national and international issues as well as increase their awareness by giving them

participative role in formulation of policies/plans. In other words a country cannot

achieve a higher growth rate without a larger proportion of services in gross domestic


product (GDP). Accordingly, the concerned authorities have been making all efforts

to strengthen the pace of development of the sector in a sustainable manner.

2.2. COMPONENTS

The service sector consists of the soft part of the economy such as insurance,

government, tourism, banking, retail, education, and social services. In soft sector

employment people use time to deploy knowledge assets, collaboration assets, and

process engagement to create productivity (Effectiveness), performance improvement

potential and sustainability. The tertiary sector is the most common work place.

Typically the output of this sector is content, service, attention, advice,

experience, and discussion. Other examples of service sector employment include

Franchising

Restaurants

News media

Leisure industry

Consulting

Health care/hospitals

Waste disposals

Real estate

Personal services

Business services

Public utilities are often considered part of the tertiary sector as they provide

services to people, while creating the utility’s infrastructure is often considered part of

the secondary sector, even though the same business may be involved in both aspects

of the operation.

2.3 AIR CARGO OPERATION- A WORLD SCENARIO

Air Transport has a major force of economic growth, globalization of

production and distribution process. Air transport plays an important role in economic


development and global integration. There benefits have been enormous. Contrary to

the belief Air Transport, benefit a very large section of society including the poor in

developing countries. The importance of Air Cargo Transport has increased. The

number of flights operating from different destination has also added to the purpose.

Experts in the industry feel that India has the potential to develop into a global air

cargo hub, particularly because of its trade relations with other countries and its

geographical location.

Due to a boon in the production of retail, textile and pharmaceutical goods air

cargo is a fast growing sector in India. Air cargo traffic is expected to register 8 to

10% annual gain over the next 5 to 10 years. If this is believed the requirement for

cargo handling staff is going to increase and moreover, the business potential that this

could generate would be tremendous.

2.4 INDIA'S POSITION IN AIR CARGO OPERATION

India is registering a sharp rise in movement of air cargo; the need for

expanding the existing infrastructure at airport is increasing being felt. Expansion

plans are being implemented but market analysts feel that these would not be

adequate in the long term. The growth of cargo at airport of the Airport Authority of

India at the Mumbai airport has been 8.1 per cent and 5.3 per cent against 3.8 per cent

and 2.2 per cent respectively for passenger traffic. The growth rate of air cargo in the

Asia-Pacific region is estimated at 9.4 per cent. Market analysts feel that this trend is

likely to continue. The growth of air cargo at AAI facilities and Mumbai airport is

project to touch 6.7 per cent and 6.6 per cent respectively. The International air cargo

of India swelled from 4.79lakh tones in 1996-97 to 6.48lakh tones last fiscal, domestic

air cargo grew from 2.02lakh tones to 3.33lakh tones during the same period.


CHAPTER – III

COMPANY PROFILE


3.1 HISTORY OF THE COMPANY

Kerala State Industrial Enterprises Ltd (KSIE) is a fully owned Company

established in 1973 as a Holding Company having seven Subsidiary Companies. All

the Subsidiary Companies were de-linked from KSIE w.e.f. 01/04/1999 and presently

KSIE’s activities are (1) Operation of Air Cargo Complexes and (2) Marketing

activities. KSIE is operating the Air Cargo Complexes at Trivandrum and Calicut and

Sales Emporia at Trivandrum, Cochin and Calicut.

Government of Kerala subscribes to the whole of the share capital of KSIE

Ltd. Being a government Company, all of its Directors are appointed by the

Government. Delhi based APEDA (Agriculture and Processed Food Products Export

Development Authority) of Ministry of Commerce, Govt of India appointed KSIE as

its virtual office in Kerala. It takes necessary steps to improve the performance of the

exporters and to attract new people in the field of exporting business. KSIE in

association with APEDA conducts seminars in Trivandrum, Cochin and Calicut in

order to make awareness about exporting business.

3.1.1 Activities of KSIE

Managing the Air cargo complex at Thiruvananthapuram and kozhikode

International Airports (ISO )certified

E- commerce

Functioning as virtual office of agricultural and processed food products

Export

Development authority (APEDA), ministry of commerce, Govt.of India.

Wherever in the world you require, whatever be the range of product you

require, KSIE can source them as per your specifications and deliver them to you.

This simply means that you no longer need to spend precious time and money

reaching out to different manufactures for your needs. All you have to do is talk to the

people at the Kerala State. Industrial Enterprises Ltd. (KSIE), the full service export

house of the Government of Kerala. Set up in 1973, KSIE offers you a wide range of

services and products .KSIE can source and Export a wide range of products for you.

Agricultural products, processed food, pharmaceuticals, Engineering products, custom

made software, kaolin, Garments, Rubber products, Toilet ices.


KSIE can cater to a wide cross section of industry requirement, including

custom made orders. Being a 100% Government owned body, it has a longer aim to

source material. Their subsidiary companies also manufacture a wide range of

products giving us tremendous flexibility in terms of tailor made orders.

KSIE ensure stringent quality control KSIE ensure that all required parameters

are met before clearances we given. Being a Government body, KSIE have a

remarkable edge over other in terms of ensuring that your consignment reaches you

without any unnecessary delay. They respect budgets since most of the budget

product are sourced from public sector undertakings, they can offer maximum value

for money by maintaining a stable price without compromising in any way on quality.

They are100% Government owned .This give you the added advantage of having a

link in the Government that can help you in many ways, to advise and guide you

through formalities and other business ventures

The company's Industrial Relations developed through various training

programs conducted by the organization for the welfare of employees .Around 45

men attended in various operations. These training programmes helped the employees

to update their knowledge and get adequate exposure to latest development in

different were of management.

3.1.2 List of Clients

KSIE have a host of prestigious clients worldwide a few of them include

Wako Bussan Company Limited, Japan, Ornga Paris, France, Riyadh University staff

Housing project and Towell Construction company; Indian Railways ;Indian Tourism

Development Corporation (ITDC); Kerala Tourism Development corporation

(KTDC); TamilNadu Tourism Development corporation (TTDC) and so on.

KSIE are open to joint venture possibilities too they have a few select Joint venture

partners. if you are looking at a long term, mutually agreeable profit partnership They

are open for discussion, especially in areas like software, drugs and pharmaceuticals.


3.2 STRATEGIC INTENT

3.2.1 Vision of KSIE

''To go beyond the best in facilitation''

3.2.2 Mission of KSIE

''Better work meets better Result”

3.2.3 Objectives

1. To carry on the business of managing Air cargo Complexes, including all

operations relating to handing of the Air cargo in airport and all other

activities associated and incidental thereto.

2. To take up and execute industrial consultancy work including but not Limited

to conducting surveys for identifying potential industrial and service units,

preparing feasibility reports, surveys executing and implementation of projects

as turnkey jobs otherwise and working as consultants in the field of industrial,

financial, Marketing, personal and industrial relation, advertising and other

services.

3. To carry on the business of buyers, seller, exporters, importers, agents, dealers

of all ceramic products including crockery cutlery, utensils etc, food products,

confection way and other edible items, fruits and merchandise required for

hotels and restaurant house hold equipment and implements, cosmetic and

stationery items, office equipment industrial chemicals and productions,

entertainment, electronic and consumer goods and durables of all kinds and to

carry on the business as buyers, sellers, dealers, suppliers of all agricultural,

horticultural, floricultural products and products from agrihorti sources,

including setting up of floriculture gardens.

4. To engage all areas of business in the field of information Technology and E-

commerce including rendering of service as interest service provides, soft

ware developers and exports and providers of service in the field of

technology for telecommunications, satellite equipment, web services

including web tusk.


3.3.4 Quality policy

Our quality policy is to ensure "Quality Service" of Air cargo Handling

endeavour to achieve and maintain customer satisfaction. We are committed to make

continual improvement in all our activities

3.3 PRODUCTS

3.3.1 E- Commerce

As part of expansion of Trading, KSIE has stepped into e-business by hosting

its own e-com portal which also provides opportunities for small and medium size

business firms to join this venture as “partners in progress” and show-case their

products on a global basis to capture opportunities for doing business in the world

market. The E-com portal of the Company “www.keralarcade.com” is the first of its

kind in Kerala with online payment facility.

KSIE is the first state public sector undertaking to venture into such as the

business and is the only Government Company in this line it has tie-up with ICICI

Bank for the online payment solutions on business taking place through the site. The

company is offering “Kerala Special” products through the site as well as products

manufactured by large and medium scale industries both in the public and private

sectors. The portal also includes service sector via, hotel reservations.

A unique service provided by the company through its portal is the online

cargo tracking system. Passengers / customers who send their cargo complexes can

login to their site and check whether the cargo is arrived or not. If arrived, the date of

arrival, no. of pieces etc. are also displayed. No other cargo complex in the country is

offering such services at present.

3.3.2 Virtual office of APEDA

KSIE also holds the status of the virtual office of APEDA (Agricultural and

Processed Food Products Export Development Authority) for the state of

Kerala.Under Ministry of Commerce & Industry, Government of India. The activities

of Virtual Office of APEDA are looked after by the General Manager (Air Cargo

Complexes).


KSIE as virtual office of APEDA will also provide the latest trend on agri-

produce which are having global trend on supply and demand on imports and exports.

Such information will be beneficial to growers, producers, manufacturers and

exporters of our state. Further the exporters can register their firm for exporting their

products to International Markets, apply for financial assistance schemes, collect the

trade information, Government notices etc.

3.3.3 TACT – Trivandrum Air Cargo Terminal

Major function taking place at Trivandrum terminal are:

Import

Export

Import Procedure

There are 2 categories of Import Cargo as indicated below.

1. Receipts of cargo from concerned Airline Storing.

2. Delivery of cargo to customs for clearance.

1. Receipts of cargo from concerned Airline Storing.

The import cargo is received from Airlines from 24 hrs. till the last flight

on all working days including holidays Sunday. Cargo is received against a copy

of the import general manifest enclosing a copy of each of the Airway bill. Upon

off loading the cargo in the receiving bays, Import Warehouse Register (IWR)

numbers are written on all individual packages all allotted against each airways

bill before they are transported to their respective rows assigned from 0 to 9. The

receiving officer enters the details of cargo received in the IWR. The above

feature is represented in Chart.3 (2).

2. Delivery of cargo to customers for clearance

Customers have to follow different formalities for the customs clearance. The

various steps to be followed by the customers for clearing their baggage both UB


(unaccompanied baggage) Cc (Commercial cargo clearance) are shown in Charts 3(3)

and 3(4) respectively.

Export Procedures

The export cargo handled at TACT is of 2 types.

1. Perishable

2. Non-perishable

1. Perishable Types

Majority of the export cargo handled through this terminal is of perishable types.

They include vegetable, fruits, fish, meat & flowers. Perishable constitute about 90%

of the total export cargo. Providing cold storage facilities for sea foods, which was

constructed with the aid of Marine Products Export Development Authority

(MPEDA) and also providing a Cool Room Facility constructed with the assistance of

Agricultural and Processed Food Product Export Authority (APEDA) for storing and

processing of vegetables and fruits.

2. Non – Perishable Types

It’s also referred as General Cargo includes mainly commercial cargo namely

engineering products, textiles items such as ready – made garments etc. Besides this,

small quantities of spices like cardamom, etc. are also exported.

Exporters bring in perishable cargo just hours before the arrival of the flight.

The general cargos are received kept for a period of --- hrs to meet the securities

“cooling – off” restrictions as per the directives of Bureau of Civil Aviation Securities

(BCAS), New Delhi. To meet this requirement the perishables are subjected to a

100% open examination as well as X-ray screening by the concerned Airlines

securities personnel posted at the cargo terminal. The perishable shipments are

labeled, stacked & segregated regulation agency like “plant quarantine & fumigation”.

Being perishable cargo, they are subjected to X-ray screen by the concerned

Airlines & the shipments are immediately palletized inside the examination hall.


Stuffed pallets/containers then transported to ramp-side of the Aircraft of loading.

Bulks of export shipments are received at the complex from ----- hrs and the terminal

charges are paid at the counter provided. A copy of the Airway bill is received by

TACT from the agent in respect of each payment. A formal receipt is issued to the

agent for the amount. The total collection at the end of the day is deposited in the

bank account. Details of the daily export shipments handled are entered in the export

warehouse register. The Chart 3 (1) shows the export procedure at TACT.

3.3.4 The Play of KSIE at TACT

Kerala State Industrial enterprises Ltd., has been appointed by the Government

of Kerala as an operating agency for setting up and running Air Cargo Complex in the

State. TACT is the first complex in the Kerala state for import and export. The

Trivandrum Air Cargo Terminal has been awarded the ISO 9001-2000 certification. It

is the first its kind in India to receive the ISO 9001-2000 certification. KSIE has the

major role in handling the export and import cargo. A well-equipped ware housing

facility is needed for cargo. The work done by KSIE includes

Depositing Of Incoming Cargo

When airline arrives, consignee copies of Airways Bill &Cargo manifest has

to be got from the aircraft. The handling agent will down load the pallets, ULD’S etc

into the complex Airline Staff, KSIE Supervisor& the handling agent will be present

at the complex.

Every pieces of cargo will be crosschecked by there and will be checked for

damages, if anything found it will be noted down. Then the workers keep cargo at the

godown & seal it .Even though the work seems to be very easy, it is very tough.

Handling

All the activities namely receipts, storage & delivery of the cargo require

handling .Porters carry out the hand long of the cargo with or without the use of

trolleys and forklifts. Proper care has to be taken to ensure that the damages to the

cargo are prevented during transportation.


Storage

The cargo received from the Airline on behalf of the passengers has to the

stored in a systematic is for cash retrieval and delivery to the customers. The steps

involved in storing the cargo are.

1. Assign serial numbers i.e. inward warehouse register number to each

cargo/consignment.

2. Write indicate the IWR (Import Warehouse register) number on each cargo.

3. Storing the cargo in predetermined location.

4. Storing of cargo airline wise.

5. Assigning row number.

6. Placing the cargo in the respective row based on the last digit of the IWR

number

7. Separate location to precious metals.

8. Keeping medicines in refrigerators, etc

9. Storing commercial cargo in commercial cargo godown.

Preservation

1. All cargos are preserved inside the godown

2. Medicine product a like are kept in the cold store.

3. All cargo equipments are insured against fire, theft etc .

4. Fire fighting equipments are kept at different location inside the godown

5. Each day at the end all operation the entire godown are locked and sealed in

the presence of customs officials.

6. Each godown shall have two keys, one will be with the customs official &the

other key will be with the TACT officials

7. The godown will be opened in the presence of TACT officials and customs

officials

8. The godown in sealed condition will be handed over to the police at the end of

the day & will be received back from the police in the next morning in the

same condition.

9. The entire TACT is under tight security.


10. Having proper post control measures is preventing damages to cargo by pests.

DIFFERENT TYPES OF CARGO

The different types of cargo

1. General Cargo

2. Unaccompanied baggage.

3. Perishable Cargo

1. General Cargo

Cargo sent for commercial purposes are general cargo. Thus are mainly

manufactured goods. As they are for hire commercial value much should be taken

while dealing with general cargo. Courier/Mails are another type of cargo.

2. Unaccompanied Baggage

There are the baggage send by the passengers when they are accompanying it.

In simple term a passengers can carry only …..(First class)… (Economy class)

respectively with them at free of cost. If he has got mere things to carry, he can book

it with the Airlines. Thus will send in a future date & in such a case, the passengers

needs not be accompanying the baggage in the baggage in the same aircraft.

3. Perishable Cargo

Cargo which has chance to decay, is called perishable cargo like food items.

These items will be exported quickly & if anything happens like delay in exporting, it

will be preserved in the cooling machine.

Cool Room

The company was able to commission the cooling room facilities measuring

13000 Sq. ft at TACT Premises. Financial assistance is providing by APEDA, for

setting up cooling room for storage preservation of fruits and floricultural products for


exports. A chilled cool room of 518 sq. ft. was also setup at TACT with the help of

APEDA.

Chart No: 3.1- Export Procedures at TACT


Reception

Filling shipping Bill with customs

Issue of Identity card to exports agents

Entry of export cargo having Airway Bill and

Collection of Terminal charges

Customs Examination and ReportingUnloading of cargo at TACT

premises

Perishable Cargo

General CargoCooling

Security Check & Taking over by the Airlines

Containerization by Airlines

To Airport

Chart No: 3.2 - Receipt & Storage Import Cargo


Receipt of import general manifest & Airway wings of consignment

Transporting to the consignments to the predetermined location and taking properly

Recording of formal taking over of cargo

Assigning corresponding IWR numbers to all the packages in each of the consignment

Taking weights in case of damaged package

Nothing physical condition of the cargo

Receipts of cargo in presents of custom officials as per the Airway bills shown in the manifest

Loading of cargo at the port bay by the Airlines

Assigning serial numbers (import warehouse register numbers) to each consignment in the manifest

Preparation of import warehouse register

Chart No: 3.3 Unaccompanied Baggage Clearances


Issue of gate pas at the gate

Reception

Arrival notice by Airlines to the consignee

Issue of delivery order by the Airlines

Collection of ware housing charges from the consignee

Retrieval and delivery of UB to customs

Filling baggage declaration with customs.

Inspection and assessment of duty by customs

Receipt of duty etc by the Bank at TACT

Issue of exit passes for unaccompanied baggage

Issue of clearance certificate by customs

Final checking at the gate for proper delivery

Chart No: 3.4 Commercial Cargo Clearances


Issue of identity card to the customs house agents

Reception

Arrival notice by Airlines to the consignee

Issue bill of entry by customs house agents with customs

Retrieval and delivery of Cargo to customs for INSP Inspection and assessment of duty

by customs

Payment of duty and other charges

Receipt of duty etc by the Bank at TACT

Collection of warehousing chargesIssue of clearance certificate by customs

Final checking at the gate for proper delivery

Issue of exit pass and delivery of cargo

3.3.5 Current Achievements

The Company has provided a fully covered expert processing area within the

export premises, Calicut Airport. This fulfills a persisting demand from the trade for

providing such a facility. Total amount invested is Rs. 46/- lakhs. This was

commissioned in Feb. 2008. During the year company commissioned a

Manufacturing unit for Soap Products at Calicut. Company’s new Project of

Container Freight Station at the new Vallarpadam Container Terminal, Kochi is in

Progress.

During the year 2011 company achieved EXPORT AWARD 2011 from

hon’ble Minister Of Industries.

KSIE Chairman Shri. M.C.Mayin Haji inaugurated the newly constructed APEDA

aided Cold Storage at Calicut Air Cargo Complex on 18-08-2012.

Looking ahead

Shopping mall cum office complex

Sales Emporia in all districts

Air cargo complex attached with the proposed Kannur Airport

Terminal as an International cargo hub

Immediate Plans

State-of-the-art new Air Cargo Complexes at Thiruvananthapuram and

Karipur airports

Establishment of a Mega Trade Centre at Thiruvananthapuram


CHAPTER – IV

ORGANISATIONAL STRUCTURE


Chart No: 4.1 Organisational Chart


4.1 ORGANISATIONAL SET UP

Being a governed owned company, the management of KSIE is vested with

the board of Directors. A managing Director is appointed from time to time for the

smooth and efficient running of the company. He is assisted by

Secretary of General Manager (Finance)

General Manager (Air cargo Complex)

General Manager (Human Resource)

General Manager (Development)

General Manager (Marketing)

BOD - Board of Directors

MD - Managing Director

S&GM (F) - Secretary and General Manager,

AGM - Assistant General Manager

ACC - Air Cargo Complex

GM - General Manager

TACT - Trivandum Air Cargo Terminal

CACC - Calicut Air Cargo Complex

AM - Assistant Manager

GM (D) - General Manager, Development

GM (M) - General Manager, Marketing

CFS - Container Freight Station

GM (HR) - General Manager, Human Re Resource


CHAPTER - V

ANALYSIS - OBJECTIVE WISE


Kerala State Industrial Enterprises Ltd., mainly consists of five Functional

Departments. These departments are intended for the proper and effective

functioning of the entire organization.

The various department of KSIE are listed below:

1) Air cargo Department

2) Marketing Department

3) Finance Department

4) Human Resource Department

5) Development Department


5.1 AIR CARGO DEPARTMENT

Chart No 5.1: Structure of Air Cargo Department

KSIE started its 1st Air cargo complex in Trivandrum in the year 1979 and

subsequently Cochin Air cargo complex was started. However, after the establishment

of CIAL, this was handed over to them calicut ,Air cargo complex was started in May


GM

AM

AGM

EXECUTIVE

SENIOR SPECIAL GRADE GENERAL ASSISTANT

STENOGRAPHER

SENIOR ASSISTANT

GENERAL ASSISTANT

JUNIOR ASSISTANT

ATTENDER

1995, at Beach Road, Calicut and later the entire operation was shifted to the

company’s own building at Karipur, in the present location in September , 1999

5.1.1 Operation of Air cargo complexes

In 1979, Government of India took a decision that Air cargo complex should

be set up at suitable location by the concerned state government. The complexes were

intended bring all Export / Import activities under one roof. To begin with

Trivandrum was identified as a suitable location and the government of kerala

appointed kerala state.

Industrial Enterprise limited as the operating agency for setting up Air cargo

complex in the state Accordingly KSIE has established three Air cargo complexes

each at Trivandrum, Cochi and Kozhicode. It is worth mentioning that as of today,

KSIE has managed these cargo complexes efficiently and succeeded in operating

them in profitability. However the cargo operation at Kochi was commissioned.

As per the public notice no 3/1993 from the office of the collector of central

Excise and customs, cochin, the KSIE Ltd Trivandrum have been duly appointed as

the custodian of all imported goods landed at Airport Trivandrum until they are

cleared for home consumptions or are warehoused or are transshipped in accordance

with the provision of chapter 8 of the customs Act 1962

The Trivandrum Air cargo terminal has been awarded the ISO 9001-2000

certification .Trivandrum Air cargo terminal is the first of its kind in India to receive

the ISO 9001-2000 certification.

The online cargo tracking facility launched by the company through its

website www.keralcade.com is a unique one of its kind in the country. The customer

friendly services provide by the company at its Air cargo complexes ac rates cheaper

than that of its competitors at other Airports is one of the major attraction of the

importers and exporters to opt for these Air ports in the stale of their business purpose


5.1.2 Achievements so for made

1. Expansion of Trivandrum Air cargo Terminal (TACT)

The cargo complex at Trivandrum has a covered area of about 35000 sq.ft for

the use of importers, exporters and other user agencies.

Additional infrastructure facilities including the expansion of export

processing Area, office complex, X-Ray machines, weigh Bridges .have been

established at a total cost of RS 391lakhs 50% of the project cost of this modernizing

program was financed under the AIDE Scheme (Assistance to states for Infrastructure

Development for Export) of the central Government The company from its internal

accruals meets the balance amount.

About 90% of the cargo Exported from Trivandrum Air cargo Terminal is

fresh vegetable, which normally arrive at midnight to catch the flight between 4 am to

8.30 am. Most of the outbound flights are taking off in the early house of the day and

hence, maximum space is needed for processing the export consignments during three

peaks house all the operation such as unloading, weighing and x –ray screening,

palletisation are to be done under one roof for different Airlines at the same time.

Now it is possible in the Air cargo complex and all the operation have been brought

under one roof and synchronized accordingly by commissioning the new export Bay

of 2370 Sq. mtrs.

A weigh bridge with 20 T capacities has also been commission for processing

export consignment. A modern passenger lounge has been constructed additionally in

the main building of the Terminal .They have provided separate office facilities for

the customs department, Airline, IATA agents, banks etc .sufficient office

accommodation is also provide for various agencies ,All users are provided with

Internet facility, free of charges

They have also provided cold storage facilities for sea foods, which was

constructed with the aim of marine products Export development Authority (MPEDA)

and provided a cool Room facility constructed with the assistance of APEDA


(Agricultural and processed food products Export development Authority) for storing

and processing of vegetables and fruits.

KSIE had carried out two major expansion projects at TACT. It has also obtained

quality certification from the Bureau of Indian Standards as per IS: ISO 9001-2000

standards, as early in the year 2003. TACT is the major center for export of

perishables from South India. Nearly 75 MT per day of vegetables, fruits and other

perishables like meat, fish, flowers etc. are exported from TACT. Spices, handicrafts,

textiles etc. are also uplifted. As regards Import, TACT has now capacity to handle

upto 75MT of Import cargo per day on an average.

International flights from Trivandrum Airport stands shifted to new Aiport

Terminal commissioned by the AAI with effect from 01.03.2011. Along with this,

KSIE has created necessary infrastructural facilities near the new Airport terminal at

Chackai to carry out export operations smoothly. AAI had leased out around 4000

sqm. land to KSIE for this purpose. This arrangement will continue for the time being

until the dream project of KSIE to construct a new cargo terminal of international

standard in 10 to 15 acres of land to be allotted to KSIE by the Government of Kerala.

Customer friendly service provided by the company at TACT at competitive rates

is one of the major attractions for importers and exporters to opt for TACT for their

business purpose

2. Expansion of calicut Air cargo complex (CACC)

The Calicut Air cargo complex was constructed at a total cost of 500 lakhs. At

present CACC has total built up area of 3,990 sq.m. Now KSIE in the second stage of

expansion of Calicut Air cargo Complex. As part of this, they are planning to

construction office space for Exporters, Airline; plant Quarantine, KSIE and customs.

Providing of additional cargo handling equipments, networking stations etc are also

planned at an estimated project cost of RS 310 lakhs. Calicut Air cargo Complex also

achieved the status of ISO Certified Cargo Complex.


EDI-MES facility

In accordance with the directions with the government of India a web based

EDI centre is set up at TACT for the benefit of importers, Exporters, Airline etc. This

center is equipped with computer system with Internet Facility, which can be made

use of all the user agencies to transact through their business through the web many

other cargo complex yet to start this facility.

Trading Activities

In additions to the cargo complex, the company is also engaged in trading

activities particularly in the field of Hotel amenities, medical equipment, student

amenities and other house add utensils the company is also doing E-com business

through its site www.keralaarcade.com.

The company as a part of marketing activities entered in to the field of export

and able to export a container load at Trivandrum dioxide to middle east further as

part of expansion activity of E-com the company held up with foam matting

(INDIA).Alleppy for the sale of their product through E-com site.

5.1.3 Air Cargo Operation

The income from Cargo operations showed an increasing trend during 2009-

10. The Cargo Complexes achieved a turnover of 1132.23 lakhs as against the

turnover of 861.40 lakhs in the previous year. Both Air Cargo Complexes maintain a

high standard of Quality in its services justifying their status as ISO 9002 Certified

Cargo Terminals.


5.1.4 Future plans

1. Ground Handling facility

The company is planning to establish Ground handling facilities at

Trivandrum Airport in association with other Airline. Basic discussions were

held in this regard with representatives of Airlines based in the Middle East.

2. Setting up of Mega Trade Center

The company is planning to set up a mega trade center at Trivandrum

in the chacka kazhakuttam by-pass area. by the establishment of this facility

we are hopeful that foreign traders can be attracted to the state, which means

foreign investment and employment potential.

3. Setting up of Rail Side Warehouse

Discussions were held with Indian railways during the last month for

establishment management of rail side warehouses for near the major Railway

station in the state.


5.2 MARKETING DEPARTMENT

Chart No 5.2: Structure of Marketing Department

KSIE was mainly set for the overall development and control of the following

six industrial units fully owned by the government

1. Trivandrum Rubber works Ltd.

2. The kerala ceramic Ltd.

3. Travancore plywood Industries.

4. Kerala Electrical and Allied Engineering Company Ltd.

5. Kerala soaps and Oils Ltd.

6. Kerala state Drugs and pharmaceuticals.

Marketing is the function of business concerned with the creation of a

customer. In addition to the operation of Air Cargo complexes at Trivandrum and

Calicut Airport, KSIE is engaged in the trading and marketing activities ranging from

consumer goods to industrial products.

KSIE is successful in establishing, managing, and efficiently operating the

three sales emporia located at:


GM

DGM

AGM

AM

Executives

Thiruvananthapuram

Kochi

Kozhikode

It supplies hotel ware, house hold items, hospital amenities, Harmony brand note

books etc at reasonable rates. KSIE is also nominated as the authorized Export house

for the Government of Kerala. As a part of expansion of trading, the company has

stepped into e- business by hosting its own e-com portal, which also provide

opportunities for small and medium size business firms to join this venture as “

partners in progress” And show case their products on a global basis and capture

opportunities for doing business in the world market. The e-com portal of the

company www.keralarcade.com is the first its kind in Kerala with online payment

facility.

KSIE also functioning as the virtual office of agricultural & processed food

product export Development authority (APEDA), ministry of commerce. Govt of

India has appointed KSIE as the virtual office of APEDA.

5.2.1 Duties and Responsibilities of Marketing Department

1. Prepare annual sales and expenses budget for the marketing department, by

collecting the individual units’ detailed budget& to ensure its targets with the

assistance of the emporia manager.

2. Establish good relationship and good rapport with the three emporia personal,

other officials, marketing agents and our clients.

3. Ensure that all records are filed properly after taking appropriate actions;

ensure entries are made in the ledgers after they are being scrutinized.

4. Preparation and submission of statements to MD/GM based on the statements

from three emporia in the first week of every month also see that information

such as cash book sales, sales statements, monthly performance, dues

statements etc are received from the emporia at the right time.

5. Make consolidated monthly, quarterly and yearly statements based on the

performance of the 3 emporia & make a review on it.


6. Supervise stock taking of three emporia and prepare stock statement during

year end and ensure its timely completion for auditing purpose.

7. Ensure consolidation of total purchase of each emporium and its submission to

accounts department, when called for.

8. Original Purchase bills & imprest vouchers are properly scrutinized before it is

recommended to General Manager marketing for arranging payment.

9. Sending of reminder letters for those who fail to pay the sales proceeds within

the stipulated period in consultation with each emporium.

10. Liasoning of marketing agent dealer and establish good public relation.

11. Ensure that 3 emporia comply with Govt/Local Body’s Rules and regulation in

respect of sales Tax, Corporation Tax and other fee if any.

12. Conduct market survey of products proposed by KSIE whenever necessary,

identify new products to be marketed though emporia and find out the area

where more concentration is to be given to boost up sales.

13. Advise cost effective measures to emporia wherever possible.

14. Supervise the work of the subordinate and carry out the general administration

of marketing department in the absence of General Manager Marketing.

15. Consultation with other officers in the marketing Department, Emporia

officials and marketing agents in matters relating to business development of

marketing department.

16. Carry out institutional sales, submission of tenders, quotations offer

identifying suitable sourcing agents with the approval of GM, Marketing.

17. Contact parties for selling note book and procure advertisement of notebooks.

18. Arrange sending of correspondence to various parties in connection with

marketing

19. Ensure timely payment of rent, telephone bills, Electricity bills, preparation of

rent agreement with tenants in the respective areas.

20. Attend to any other duties and responsibilities assigned by GM, marketing

from time to time.


Trading

The three sales Emporia at TVM, Kochi, and Calicut and e- com site together

achieved a turnover of 690.69 lakhs during the year as against 835.84 lakhs

achieved in 2008-09.

5.3 FINANCE DEPARTMENT

Chart No 5.3: Structure of Finance Department

Finance is the life blood of every business. The finance department is

concerned with the planning and controlling of firms financial resources. It deals with

finding of various sources for raising and economical for the needs of the business.

The appropriate use of such funds also forms a part of financial management.


DEPUTY GENERAL MANAGER (FINANCE)

ASSISTANT GENERAL MANAGER (FINANCE)

EXECUTIVE (FINANCE)

PA

SECREATRY GENERAL MANAGER (FINANCE)

5.3.1 Functions of Finance Department

1. Cash management

2. Proper keeping of records in respect of assets and other valuables of the

company.

3. Keeping of records pertaining to daily transactions of the company.

4. International audit in respect of the transaction of the company.

5. Verification of correctness of income and expenditure of the company.

6. Filling of proper returns documents with the registrar of companies.

7. Timely completion of Annual reports and accounts of the company.

8. Carry out instructions from chairman and managing director.

5.3.2 Accounting Policies

The financial statements are prepared under historical cost convention in

compliance with applicable accounting standard referred to in sub. Section (3c) of

section 211 of the Company Act 1956. Accounts are maintained on accrual basis

expect in the case of the following.

Payments of gratuity reimbursement of medical expense, festival

allowance leaves encashment to the employees.

Income from the investment deposits.

Income from warehousing charge.

The premium of gratuity – cum – life assurance scheme with LIC of

India and other insurance policies.

Payment of annual maintenance contract for plant machinery.

a. Inventories

Inventories are taken by the management valued at cost of market price

whichever is lower on first in first out basis.


b. Sales

Sales comprise of the sale of goods through the imperial export sales.

c. Fixed Assets

Fixed assets are stated at the cost of acquisition itself consultation fee,

installation fee, architectural fee, etc.

d. Depreciation

Depreciation for fixed assets other than land have been provided for a

written down value method in the manner provided under schedule 14 of the

companies Act 1956. The current rate have been applied on the fixed asset as well

as on the additions from the date of purchased the assets put into use as per the

guidelines of the institute of chartered accountants of India free hold land

additions to land have not been depreciated.

e. Investments

Investment are valued of cost the company has not been manufacturing

anything so there is no consumption of Raw material by the company.

5.3.3 General Duties of Finance Department

1. To determine the financial resources required to meet the companies

operating program.

2. The forecast as to how much of their requirements could be mend by

internal generation of funds how much will have to be obtained from

outside sources.

3. To develop the best plans to obtain the required funds from outside

sources.

4. To establish and maintain a system of financial control for the proper

allocation and utilization of funds.


5. To formulate a program for a most effective profit volume cost

relationship.

6. To report and analysis of the financial result of all operations with

appropriate recommendations regarding future operation to the

management.

7. To make special studies with a view to reducing cost, improving

management efficiency and profitability.

8. To scrutinize the capital expenditure scheme relating to the new projects or

expansions, feasibility studies etc. in order to ensure that

i. The capital expenditure proposed would be the furtherance of the objective

for which the enterprises have been established.

ii. The expenditure proposed to be incurred.

iii. The expenditure would result I ensuring reasonable profits.

iv. The proposals have overall economic viabilities and

v. That the financial resources for meeting the expenditure would be

available.

9. To function as the principal co-ordination office for the preparation of

i. A long term capital operating budget covering a period of 10 years

indicating the likely profit or loss year during the period.

ii. A long term capital expenditure budget covering a period of about 10 year

advising the management.

iii. A capital expenditure budget in regard to the capital expenditure that is

expenditure that is expected to be incurred during the year.

iv. An annual operating- budget and

v. The budgetary control including periodic review of performance.


10. To prepare cash flow statement, based on the long- term budget indicating

the inflow and out flow of cash during different periods and to prepare a

detailed monthly cash flow statement for the year based on the annual

budgets.

11. To prepare cash flow statement, based on the long- term budget indicating

the inflow and outflow of cash during different periods and to prepare a

detailed monthly cash flow statement for the year based on the annual

budgets.

12. To make an assessment of the total working capital requirements for the

fiscal year to advise the management regarding the source for obtaining

the same.

13. To associate with all matters relating to the purchases of equipments raw

materials, etc. and to lay down suitable procedures for purchases to ensure

that adequate control is exercised over them and uneconomic purchases are

avoided.

14. To advise the chief executives on the pricing policies to be following in

the organization as regard the selling prices of products, inter – department

issues, charging of material to job etc.

15. To advise the management on all service matters, having implication such

as scale of pay, dearness allowance, bonus gratuity etc.

16. To function as the principal officer in charge of accounts, budget and

internal audit of the company. To maintain adequate records of assets,

liabilities and transactions of the company.

17. To ensure that a proper adequate system of cost account is maintained to

enable complication and control of costs. To render reports to various

levels management in regard to the respective items of expenditure under

their control.


18. To ensure maintenance of adequate system of store accounts. To assist

management in determining the maximum and minimum ordering levels

of various items and also responsible of the introduction and operation of

the ABC method of control with a view to reducing the inventory holding

to the optimum level. To ensure proper verification of stock at periodic

intervals.

19. To ensure that the annual account are prepared in time according to

provisions of law. He will attend to all matters relating to statutory audit

and audit by the controller and Auditor General.

20. To be the custodian of cash of the company to function as the principle

disbursing officer and to ensure that adequate financial control is exercised

in the sanction, allocation and the use of funds in accordance, with

approved program budget policies and regulations laid down by the board.

21. To attend all the matters relating to the company.

22. To take up from time to time special studies particularly with reference to

cost reduction and economics in administration and other overhead

expenditure and also in such other area as have a bearing on the

profitability of the company.

23. To ensure that market surveys are carrying out for the products

manufactured and to manufacture in the undertaking to facilitate there

marketing. To furnish the prospective costs of the products so as to enable

the managements to decide the optimum product mix.

24. To discharge the secretarial duties responsibilities pertaining to the

company.

25. To approve traveling programs of officers and staff working under him.


26. To sanction traveling allowance bill of staff and officers working under his

administrative control subjects to normal rule and audit.

27. To sanction casual leave, sick leave and compensatory leave to employees

under his administrative control as per rule.

5.3.4 Income/ Turnover

Finance Department undertakes the maintenance of records and accounting

and auditing functions. During the year 2009-2010 of the Company earned a total

income of 2017.10 lakhs as compared to 1855.75 earned in the previous year. Major

portion of the income comes from the operation of Air Cargo Complexes followed by

income from trading activities. Proportionate contributions made by the activities

during the year 2009-2010 under report are:

Air Cargo Complexes - 56.13%

Trading through Emporia - 34.24%

Other Incomes - 8.47%

Sales from Soap unit - 1.15

Other income includes rent, commission on sales prior period income and

other miscellaneous income.

The Finance Department makes assessment of the total working capital

requirements for the fiscal year and advices the management on all service

matters, having implications such as scale of pay, dearness allowance, bonus,

gratuity etc. annual accounts are prepared in time according to the provisions of

law.

KSIE is one of the State PSUs, running on profit and paying dividend to the

Government consecutively for the last 10 years. During the financial year 2010-11,


the Company has registered a net profit of 410.70 lakhs and paid a dividend of Rs.42

lakhs to the State Government.


5.4 HUMAN RESOURCE DEPARTMENT

Chart No 5.4: Structure of Human Resource Department

Human Resource Management is management of people in an organization. In

any organization Human Resource Department is of pivotal importance as it is

concerned with manpower which is the greatest asset of an organization. It is the

sense of planning, organizing and controlling the various operative functions of

producing, developing, maintaining and utilizing the labor force for the purpose of

controlling a lot towards the accomplishment of major goals of the organization.

Human Resource Department has got for finding out the correct personnel, giving

training etc.


AGM (HR)

Sweeper

Driver

Attender - 2

Executives (Administration)

PA

Telephone Operator

ASST - 2

General Manager

5.4.1 Duties and responsibilities of Human Resource Department

General

Preparation of ESI statements and its remittance, filing of returns, registration

of employees and all other connected issues.

All matters connected with recruitment rules, selection and appointment,

deputation, posting and transfers.

Preparation of attendance statements and salary deduction statements if any.

Upkeep and maintenance of all leave records attendance records etc.

Training programmes and seminars

Printing and stationery purchase

Library and periodicals

Maintenance and updating of files and file register of HRD

Providing secretarial assistant to GM (HR) as required

Assisting to manage the front office, receipt and dispatch work etc as and

when required

Complimentary advertisement or notifications

Any other work assigned by GM (HR) from time to time

Matters relating to fundamental rights of women at work place

Employee matters

Look after service matters of all employees

Obtain Performance Appraisal of Managerial staff


Collection of property statements from employees

Put up proposals for granting annual increments to staff

Submit proposals for promotion of all employees

Look after staff welfare activities

Initiate disciplinary action against employees

Reimbursement of medical expenses to employees

5.4.2 The main function of HR department at KSIE including following

1. Recruitment and Selection

2. Training and Development

3. Performance Appraisal

4. Wages and Salary administration

5. Incentives

6. Policies

7. Industrial Relations

8. Grievance Redressal

9. Discipline

10. Employee Welfare

11. Workers participation in management

12. Trade union


1. Recruitment and Selection

i. Recruitment

Application are invited through

Newspaper advertisement

Company website

Magazines

ii. Selection

Staffs

They are selected through Public Service commission

Managers:-

They are selected through Direct Interview and it includes,

Inviting and receiving application

Screening application

Interview (6 to 8 members)

Employment Test

Aptitude Test

Personality Test

Intelligence Test

Communication skill

Contract labours are selected through

Employment exchange

TRAINING AND DEVELOPMENT

Training is the art of developing knowledge and skill of an employee during a

particular job. Training helps in the learning of job skills quickly by a worker. It will

improve the job status and pay of workers


Training method

1. On the job training

It refers to the training provided with a view to increase the knowledge and skills

of an employee for improving performance on the job. Employees may be taught the

correct methods of handling equipment and machines used in a job. Such training

helps to reduce accidents, waste and inefficiency in the performance of the job.

2. Off-the job training

In this method a trainee has to leave his place working and denote his entire

time for training purpose. During this period the trainee does not contribute anything

to the organization

3. Performance Appraisal

It is an effective control technique as it provides a regular feedback to the

appropriate about his/her job performance. It is an important document which

provides the basic of vital inputs for assessing the performance of an employee,

his/her training needs and for his/her future advancement in career. Employees’

performances are measured once in a year performance appraisal form is of two types.

a) Staff category

b) Managerial category

For staff category their job Knowledge, skill/quality of work, Job attitude, personal

characteristics, Attendance and punctuality, Initiative etc. will be noted. Each factor

carries maximum point of ten. Employees in the staff category will be assessed by the

reviewing officer Then it goes to General Manager CHR) to managing director

For managerial category, performance appraisal form has two parts-A and

part-B. Part A consist of self appraisal form and part B Consist of evaluation of

managerial and personal factors .Self assessment has to be made by the appraisee in


part A of the format and submitted to the appraiser (Reporting officer). The reporting

officer has to offer his remarks on part A on the basis of objective judgment of the

over all self appraisal.

Assessment regarding managerial and personal factors in part B is to be made

by the Appraiser (i.e. Reporting officer) and reviewed by the reviewing officer. Each

factors carriers a maximum point of ten and thus part B carries maximum point of

hundred.

4. Wages and salary administration

The goal of compensation administration is to design a cost effective pay

structure that will attract motivate and retain competent employees. The present salary

of KSIE is based on Govt. policy. The scale pay officer and staffs are given below.

5. Incentives

KSIE follows the compensation as per the regulations applicable to State Public

Sector Undertakings with a scale of pay and yearly increments to each of its category

of officers and staff and the Dearness Allowance as announced by the State

Government from time to time.

Basic Pay + Dearness Allowance, Medical reimbursement, Provident Fund,

gratuity etc

Performance Incentives (Bonus)

Festival Allowance

Granting Annual increments to staff

6. Policies:-

Leave Policy

Attendance Policy

Recruitment policy

Promotion Policy

Promotion policy


Usually promotion is based on the performance of an employee which is

evaluated through performance appraisal sheet Workers are promoted based on

seniority officers are promoted based on merits, seniority, additional Qualification etc.

7. Industrial Relation

There is a cordial industrial relation and there is no conflict and dispute

between the employees and employers. There is no strikes and layout.

8. Grievance Handling Procedure

Grievance is a written complaint given by an employee and claiming certain

treatment. Grievance means any type of dissatisfaction or discontentments arising out

of factors related to an employee’s job which he thinks are unfair. A grievance arises

when an employee feels that something has happened or is happening to him which he

thinks us unfair unjust or inequitable

The grievance redressal committee consists of members from both

management representative as well as trade union representative .They take up the

problems of employee and try to arrive at a satisfying decision for the employee as

well as the organization.

Procedure for handling employees’ grievance

1. The aggrieved employee verbally explain his grievance to his immediate

supervisor

2. If the supervisor has not settled the grievance, then it is sent to higher level

manager.

3. If it is still not settled, and then grievance is sent to grievance committee.

4. If it is still not solved, the employee can address the issue to the management

5. The final step is taken when the grievance is referred to an arbitrator who is

acceptable to the employees a s well as the management.

9. Discipline

Every company follows some ethics in their business. If any employees

are trying to violate the rules and regulations of the organization it may affect the

smooth flow of business. So KSIE usually give following types of punishment to

the employees who are indulged in any disciplinary action against the company


a. Dismissal

b. Demotion

c. With held increment

d. Warning

e. Suspension without wages

Disciplinary action

Issuing a letter of charge

Consideration of explanation

Show-cause notice

Holding of a full-fledge enquiry

Making final order of punishment

Follow-up

10. Employee welfare measures

Medical Reimbursement for employees

Insurance

Library

Festival allowance

Recreational activities

loan concession

11. Workers participation in management

WPM is the participation resulting from the practices which increase the

scope for employees’ share of influence in decision-making at different tiers of

organizational hierarch with committing assumption of responsibility.

Participation makes them more responsible. They become more willing to

take initiative and come out with cost saving suggestions and growth oriented ideas.

Suggestion box

Staff meeting in every week


12. Trade union

Two registered Trade unions

KSIE staff association

KSIE Employees Association.

During the year under review the Industrial relations in the company remained

very cordial. A number of employees were deputed to attend various training

programmes conducted by reputed institutions. These training programmes have

helped the employees to update their knowledge and get exposure to later

developments in different areas of management.


5.5 DEVELOPMENT DEPARTMENT

Chart No 5.5 Structure of Development Department

As KSIE started operating they had 8sudsidiaries. Presently it handles only the

2 Cargo complexes

1. TACT-Trivandrum Air cargo complex

2. CACC-Calicut Air cargo Complex

TACT was developed with the financial assistance of APEDA and MPEDA.

Calicut cargo complex was recently built and development department including civil,

electrical and air conditional activities monitored all construction activities.

In post, Development department hand advisory role in the field of marketing,

finance, personnel etc .Project work study etc were controlled by Development

department. Yearly Development Report, monthly Development report etc were

watched by Development Department.


GM

Electrician

EXECUTIVE ELECTRICAL

EXECUTIVE ELECTRICALAGM

Electrician AM

DGM

5.5.1 Functions of Development Department

Functions are limited only to KSIE, which is in the construction field.

1. Identification, visualization, formation of project for development of Air cargo

complex.

2. Maintenance management of cargo complex.

2. System Implementation and monitory of projects.

KSIE had provided cold storage facilities for sea food, which was constructed

with the aid of marine products Export Development Authority (MPEDA) and also

provided cool room facility constructed with the assistance of APEDA for storing and

processing of vegetables and fruits. Internet based cargo Tracking system was

installed by KSIE at TACT and CACC for the benefit of the importers.

In addition to the above the expansion of export processing Area, office

complex, weigh Bridgers, filly acr conditioned passenger lounge etc have been

established in the cargo complex recently Re-aligning and installation of x-ray

machines with most modern facilities have been done in the cargo complexes to

enable processing of export cargo of various flights at a time; fully adhering to the

security measures prescribed under BCAS regulations. A fully secure sterile area has

also been provided as required under the security regulations

KSIE has also provided separate office facilities for the customs Department,

airline, IATA agent, Bank etc sufficient office accommodation is also provided for

various agencies. All users are provided with Internet facility free if charges and

Responsibilities

5.5.2 Duties and Responsibilities of Development Department

1. To plan new projects – expansion, diversification, modernization and provision

for balancing equipments for the companies and to advise MD in these matters.

2. To prepare project report including feasibility study locating sources of finance,

organizing material availability and process details.


3. To ensure implementation of the projects and monitoring the process at periodic

intervals.

4. To assess existing plant capacity and to ensure full utilization of capacity.

5. To prepare proposal for including in the five year plan in consultation with

finance department.

6. To conduct work study & job evaluation and ensure implementation of the same

in consultation with manager personnel and Industrial relations.

7. To participate in the recruitment of technical personnel like Engineers,

Technologists etc.

8. To organize Research and Development wing.

9. To sanction Traveling Allowance Bills of officers and staff under him as per

normal rules subject to audit.

10. To sub delegate with the consent of the delegator to officers of staff working

under the Development manager and to ensure the Development manager and to

ensure discharge of function entrusted to them.

11. Negotiating with financial institutions for project finance.

5.5.3 Recent Works

Recently Government approved for Ship Cargo.It is based on vallarpadam

Terminal - 2012

TVM Air Cargo Export Complex - 2011

Kerala Soaps Manufacturing unit expansion

Second phase - 2010-11

First Phase - 2009-10

Kochi Container Freight station - 2011

Calicut Air Cargo expansion

Second phase - 2010

Construction of Calicut Export complex - 2008-09

Tvm Air Air Cargo expansion


Second phase - 2004-06

Kerala Soaps

Government of Kerala presented “Kerala Soaps”, the new Soaps

manufacturing unit as a “new year gift” to the people of Kerala in a fabulous

ceremony. The unit set up by Kerala State Industrial Enterprises limited at Vellayil,

Kozhikode envisages to produce the erstwhile brands, manufactured by Kerala Soaps

& Oils Limited conceiving its legacy. The installed capacity of the unit is to

manufacture 6000 MT / Annum of Toilet Soaps and Bathing bars. On completion, the

second soap finishing line which is under progress, will augment the installed

capacity to 12000 MT/Annum.

The premium soaps like Kerala Sandal, Thrill introduced into the market

have created a new sensation in the minds of the people. The Kerala sandal soap

contains virgin sandal oil and is recommended as beauty soap. The brands

like VEP Bathing Bar, Kairali Bathing Bar, Kerala Carbolic Soap bar (Koaltar) and

“Washwell” detergent cake are available in all leading shops

Kavya Maadhavan will be the Brand Ambassador for all Kerala Soap

products.

Container Freight Station

As part of its diversification process, Kerala State industrial Enterprises

Limited has started its yet another prestigious project, Cochin International

Container Freight Station. This is situated at Eloor hardly 14 Kms away from the

Vallarpadam International Container Transshipment Terminal and along the side of

ICTT connectivity road reaching Kalamassery. This is the first of its kind in the

Public Sector segment with state-of-the-art facilities. The CFS is set up in 8.5 acres

land with the following amenities.

Around 1,00,000 Sq.ft go-down area for Import & Export operations.


45 Capacity Reach stacker for easy and trouble free stacking of Containers

High Quality Forklifts for handling cargo

Online Cargo tracking system

24 hrs safety and surveillance system

100 Ton Weigh Bridge

Location advantage of our CFS

Easy entry and exit access for Containers/ Trailers

Space for Customs, Liners, C&F Agents, Transporters

24 hrs Canteen facility

Parking facility for over 50 vehicles

Elegant Conference hall

Good rapport with Customs and Port Authorities

Experience and expertise in Air Cargo Operation by managing two

International ISO Certified Air Cargo Complexes in Kerala

Team of experienced officials and supporting staff to cater to customers

needs


CHAPTER – VI

SWOT AND PESTLE ANALYSIS


6.1 SWOT ANALYSIS

STRENGTH

WEAKNESS

OPPORTUNITY

THREATS

To achieve proper firm – environment fitness, company’s strengths,

weaknesses, opportunities and threats should be understood. This analysis is

commonly known as ‘SWOT Analysis’ – strength and weakness are internal factors.

Opportunities and threats are external factors.

The SWOT analysis is an extremely useful tool for understanding and decision

making for all sorts of situations in business and organizations. SWOT is an acronym

for strength, weaknesses, opportunities & threats. The SWOT analysis heading

provide a good frame work for reviewing strategy, position and direction of a

company or business proposition, or any other idea. Use SWOT analysis for business

planning, strategic planning, competitor evaluation, marketing, business and product

development and research reports. SWOT analysis can be used for all sorts of

decision – making, and the SWOT templates enables proactive thinking, rather than

relying on habitual or instinctive reactions.

STRENGTHS

1. Strong financial position

2. Good post records

3. Most profit making PSU in the State


4. Highly skilled manpower

5. Efficient management

6. A strong relationship between the management and employees

7. Good reputation among customers

8. Large storage facility to keep the import / export cargo

WEAKNESS

1. Promotional activities are less

2. KSIE take time to adopt new technologies.

3. Falling behind in R & D

OPPORTUNITIES

1. Lot of reforms in the new industrial policy to facilitate industrial units.

2. Liberal Government policies and the favorable change in the attitude of

Government help the company.

3. Support from the State Government.

THREATS

1. Major decisions cannot be implemented without the approval of State

Government.

2. Political interference

3. Entry of new competitors.


6.2 PESTLE ANALYSIS

Political factors

Economical factors

Social factors

Technological factors

Legal factors

Environmental Factors

PESTLE ANALYSIS stands for “political, Economic, Social, Technological,

Legal and Environmental analysis’’ and describers a framework of macro-

environmental factors used in the environmental scanning component of strategic

management The model has recently been further extended to steeple and STEEPLE

and STEEPLED, adding education and demographic factors .It is a part of the

external analysis when conducting a strategic analysis or doing . market research and

gives a certain overview of the different macro environmental factors that the

company has to take in to consideration .It is a useful strategic tool for understanding

market growth or decline, business position, potential and direction for operation

The growing importance of environmental or ecological factors in the first

decade of the 21st century have given rise to green business and encouraged aided

spread use of an updated version of the pest framework STEER analysis

systematically considers Socio-cultural, Technological, Economical, Ecological and

Regulatory factors.

Political Factors

Political factors include- Government regulations and legal related to KISE


define both formal rules under which KISE must operate. Some of the factors that

could be included are

Tax policy

Environmental regulations

Political suitability

Economic Factors

Economic factors affect the purchasing power of the political customers and

the firm's Cost of capital.

Economic Growth

Interest rates

Inflation rate

Social Factors

Social factors are demographic and cultural aspects of the external micro

environment. These factors affect customer needs and the size of the potential market

No cultural activities are promoted by KSIE because it is an industrial

enterprises limited.

Technological

Technological factors can lower barriers to entry, reduce minimum efficient

production levels, and influence outsourcing decisions some technological factors

include.

R & D activity: Research and Development activities in KISE done through

external consultancy.

Automation: The entire organisation is now computerized with latest

technology up gradation.

Rate of technology change in KISE in recent years is really appreciable.


Legal Factors

The activities of KSIE comply with all requirements of the Factories Act.

Proper auditing and taxation

Environmental Factors

KSIE is an organization with eco-friendly products, process and premises

The infrastructure and facilities in KSIE is so designed for not harming the

environment


CHAPTER – VII

FINDINGS, CONCLUSION

AND SUGGESTIONS


7.1 FINDINGS

1. The overall organizational climate of the KSIE is satisfactory.

2. The employees are well qualified and well experienced.

3. The Company has an internal Audit System commensurate with its size and nature

of its business.

4. The Company is not dealing in or trading in shares, securities, debentures and

other investments

5. The organization is honest and ethical in its operations.

6. It is a highly profit making company

7. The employees are satisfied with the policies which are in practice and scale of

pay at present

8. No canteen facilities are provided to the employees

9. The employees have commitment towards their job

10. Female employees dominate in Human Resource of the enterprise

11. Computerization of all department is effective


7.2 CONCLUSION

KSIE, Ltd is one of the State PSUs, running on profit and paying dividend to

the Government consecutively for the last 10 years. KSIE is a highly profit making

public sector Enterprises under the Department of industries, Govt. of Kerala KSIE

commands a place of high esteem in the field of Air cargo management apart from its

strength in marketing and E-commerce activities. KSIE has won in January 2000, ISO

9002 for its Trivandrum Air cargo Terminal Quality policy of Air cargo complex is to

ensure quality Service KSIE is the one and only cargo complex which has the

recognition in India at present KSIE venture into E-Business through its E-com portal

www.keralrcade.com which was set up during 1999-2000 Constructive movement of

all the employees so that they take pride in their job and their organization

themselves.

Today, the organization can take pride in the development it had made over

decades but still had not quenched its thirst in the areas of innovations and

developments. Now they are venturing into more areas like Infrastructure

Development (Office- cum- Shopping Mall), Logistics Management (Ship Cargo –

Vallarpadam Terminal), Production of Kerala Soaps etc.

The study conducted at KSIE was useful in studying how an organization

works, what are the intricacies involved in ensuring proper functioning of an

organization etc. The study helped me to get familiarized with the organization KSIE,

its working, services etc. The working of various departments were also studied and

analysed. Based on the data collected, the performance of KSIE was analysed and it

was found that the organisation shows a better performance in terms of its objectives.


7.3 SUGGESTIONS

KSIE is currently doing very well. It is one of the most profit making

company still some improvements could be made to make its working more efficient

with the least time involved in it some recommendation suggested by me are

1. Promotions can be based on executives’ performance and achievement of targets.

2. The medical facilities available in the enterprise are to be modified and new

facilities will be introduced.

3. The enterprise can try to reduce the workload of workers by appointing more

employees.

4. KSIE Management may arrange a better and spacious dining facility andimprove

quality and variety of food in the canteen, in the case of TACT.

5. KSIE should indulge more promotional activities.

6. More care must be given to the safety aspect of employees.

7. The organization needs to practice better HR policies that motivate the employees

and thereby they have more commitment toward the organization which triggers

good and conductive organizational climate in which the employees feel to

perform their best.

8. The company should install the Network facility for the smooth functioning of all

departments.


BIBLIOGRAPHY

BOOKS

1. Aswathappa, K. (2005), “Human Resource and Personnel Management”,

New Delhi: Tata Mc Graw Hill Publishing Company Limited, 4th Edition.

2. Kothari, C.R., (2005), “Research Methodology and Techniques”, New Delhi:

New Age International Publishers.

3. Prasanna Chandhra, (2004), “Financial management Theory and

Practices”, Tata Mc Graw Hill Publishing Company Limited, 4th Edition.

4. Sekaran Uma, (2006), “Research Methods for Business : A Skill Building

Approach”, New Delhi : John Wiley & Sons, Inc.

JOURNALS

KSIE 38th Annual Report 2010-2011

KSIE 37th Annual Report 2009 – 10

KSIE 36th Annual Report 2008 – 09

WEBSITES

http://www.ksie.net/

http://www.keralarcade.com/

http://www.wikipedia.org/


http://www.wikipedia.org/

APPENDIX

Particulars Current Year 2009-2010

Previous Year 2008-2009

INCOME

Income from trading activities Income from manufacturing activities Income from air cargo operation Interest Other income

Total(A)

EXPENDITURE

Trading activities- cost of goods soldManufacturing activities

- Cost of material consumed

- Direct expensesPersonnel expensesAdministrative expensesSelling expensesFinancial chargesDepreciation

Total(B)

Net loss on exchange of old capital itemsDonations

Total(C)Profit before tax (A) – (B) – (C)

Less: provision for DTL Provision for income tax

Profit after tax

Appropriation of profitProposed dividendTax on dividendBalance on profit transferred to General reserve

TOTAL

69,068,5112,32,717

113,223,2849,124,3567,996,250

201,710,118

64,570,742

1,506,583787,609

34,837,98426,919,4065,399,488

69,3975,186,869

139,278,078

-150,000

150,00062,282,040

1,247,78319,998,521

41,035,736

4,200,000 693,000

36,142,736

41,035,736

83,584,0070

86,140,21310,392,7215,457,661

185,574,602

79,732,260

00

23,296,47120.222,5251,257,220

74,9234,564,901

129,148,300

3,729275,000

278,72956,147,573

26,09518,415,450

37,706,028

4,200,000713,790

32,792,238

37,706,028

KERALA STATE INDUSTRIAL ENTERPRISES LIMITEDPROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2010


KERALA STATE INDUSTRIAL ENTERPRISES LIMITED

BALANCE SHEET AS AT 31-03-2010

Particulars Current year 2009-2010

Previous year2008-2009

I SOURCES OF FUND

(1) Shareholders’ Funda) Share capitalb) Reserves and surplus

(2) Loan funda) Secured loansb) Unsecured loans

(3) Deferred Tax Liability (Net)

TOTAL

II APPLICATION OF FUNDS

(1) Fixed Assetsa) Gross blockb) Less : accumulated

depreciationc) Net blockd) Capital work-in- progress

(2) Investments(3) Current Assets, Loans, and

Advancesa) Inventoriesb) Sundry debtorsc) Cash and bank balancesd) Other current Assetse) Loans and advances

A

Less: Current liabilities &Provisions

a) Current Liabilitiesb) Provisions

B

Net Current Assets ( A – B)

TOTAL

12,000,000230,181,731

-9,400,000

7,167,451

177,619,240

51,919,239

2,500

7,432,62356,223,39492,912,225

-51,102,113

207,670,355

70,338,2705,833,945

76,172,215

242,181,731

9,400,000

7,167,451

258,749,182

125,700,0011,548,541

2,500

131,498,140

258,749,182

12,000,000184,038,995

0

5,919,668

115,544,177

46,732,370

2,500

761,67728,846,634

131,354,303 0

65,004,112

225,966,726

38,223,65945,516,585

83,740,244

206,038,995

5,919,668

211,958,663

68,811,807917,874

2,500

142,226,482

211,958,663
