Blk 4 & 4 Midl Colr Copys KSIC LIMITED Aziz

KSIC LIMITED., BANGALORE.

CHAPTER I

EXECUTIVE SUMMARY

The silk weaving factory in Mysore, presently owned by KSIC,

was established in the year 1912 by the Maharaja of Mysore province.

Initially the silk fabrics were manufactured and supplied to meet the

requirements of the royal family and ornamental fabrics to their armed force

the unit was started with 10 looms and gradually increased to 44 looms over

a period. The looms and preparatory machines were imported from

Switzerland and was the first of its kind in India. After India gained

Independence the Mysore state Sericulture department took control of the

silk weaving factory. KSIC Ltd was established on 18 April 1980 with

assistance by state government of Karnataka.

Government and World Bank scheme under integrated Karnataka

sericulture project. KSIC is the only organisation in the country

commanding the entire gamut of silk production right from the reeling of

cocoons to the weaving of pure silk fabrics, under one roof. The output

share of textile has decreased from 21.8% in 1970 to 13.7% in 1990 while

that of machinery and equipment has increased from 12.2% to 34.1%.

As part of MBA programme Bangalore University as required to undertaken

in KSIC. This Internship training enables to know the realities of the

business and application of theoretical knowledge in practical environment.

Primary data has collected from face to face interview with departmental

heads, managers, and workers. The secondary data has collected through

website of KSIC Industry and documents of the company, annual reports,

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE MBA 3rd Sem

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Brochure of the company and a swot analysis is done to find strength,

weakness opportunities and threats of the organisation.

The organization encourages employee participate in the management.

With the help of formation of quality circles and mutual discussion among

the employees the company has been successful in solving work related

problems. There are old technologies and machineries used in production.

And some machines remain unused by the production department. Hence it

has been recommended that the company adapts to new technologies of

production in making work effective and makes proper use of the

machineries without keeping it idle.


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INTRODUCTION

TITLE OF THE STUDY

This study is titled as “AN ORGANIZATIONAL STUDY AT KSIC

(KARNATAKA SILK INDUSTRY CORPORATION)” Bangalore.

OBJECTIVES TO STUDY:

To know the working of the different departments in the organization.

To put theoretical knowledge into practical experience.

To know the growth and present statues of KSIC.

To know the strength and weakness of KSIC Ltd.

To know the operating, Manufacturing and Quality maintains of

KSIC.

To study about the financial statement Of KSIC.

To identify the problems if any, and to make suggestions.


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SCOPE OF THE STUDY

A well organized effectively formed organization forms the base stone of

every successful business. The project study on organization provides an

excellent opportunity for experiencing and understanding the organization.

This also enables the student to find out the correlation between the theory

and real business. The project helps in developing the internal abilities and

interpersonal skills and thereby encourages the capabilities of the student.

The study helps to find out the working of different.

METHODOLOGY

SOURCES OF DATA COLLECTION

1. Primary Data

Primary data were acquired mainly through direct observation of

various functions in the organization and through interaction and

communication through unstructured interviews with the concerned

department heads and officials of the organization.

2. Secondary Data.

Manuals

Past records

Website

Information is collected to know the organization structure and its working

and SWOT analysis has been done.


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LIMITATIONS OF THE STUDY:

The study was restricted only for 45 days. Due to time constraint an

in depth study of all the departments was not possible.

In the study only the general organization study has selected.

Since the managers were busy with their work schedules it was not

possible to spend more time with them for discussion.

OBJECTIVES OF THE STUDY

1. Societal benefits.

2. Organisational objectives.

Functional objectives.

Personal objectives.

3. Functional objectives.

To Study the functioning of all the departments individually in KSIC LTD.,

Bangalore. This study helped me to relate theoretical knowledge with the

practical scenario in the organisation.


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CHAPTER II

INDUSTRY PROFILE

It is said that silk was discovered during 2640 B.C. in China.

Chinese Empress, Ling Shi studied the silkworm and learnt the art of

unwinding the silk from the cocoon and made silk fabric from it. This was

the beginning of the silk industry in China.

Though India is the second largest silk producer in the World after

China, it accounts for just 5% of the global silk market, since the bulk of

Indian silk thread and silk cloth are consumed domestically. Germany is the

largest consumer of Indian silk. The sericulture industry is land – based as

silk worm rearing involves over 700,000 farm families and is concentrated

in the three southern states of Karnataka, Tamil nadu and Andhra Pradesh.

The states of Assam and West Bengal are also involved in the industry to a

certain extent.

The present market context for silk in India is one of

vigorously growing internal demand for silk fabrics, with growth rates of

above 10% per year. It is mostly for traditional (sari type) design and does

not impose sophisticated quality requirements upon the industry. This

situation is likely to continue, unless Indian sericulture is able to provide

sufficient quantities of raw silk at affordable prices. The present trends

represent a limitation to price increases for silk produced in India


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By import from other silk producing countries like China, Brazil, Korea etc.,

as well as by substitution with other fibres including by artificial

Silk. It also appears unlikely that the present demands can be met merely by

expanding mulberry area in order to increase cocoon and raw silk

production. Future additional output is raw silk will therefore mostly have to

come from substantial productivity increases, mainly area and labour

productivity.

Currently there is a growing demand for silk fabric among

the growing Indian middle class and young urban consumers. These modern

silk fabrics typically are produced by the expanding power loom weaving

industry. The quality requirements imposed by this trend can only be met by

bivoltine raw silk for conventional power looms. The bulk of today’s world

export demand is almost exclusively based on high graded quality bivoltine

raw silk. If Indian sericulture is unable to generate a substantial production

of bivoltine raw silk, these important market segments will continue to be

lost outside competitors.

The three main market segments offer great opportunity to India’s silk

industry:

i. The broadening domestic traditional demand multi bivoltine

based.

ii. The domestic demand for non – traditional silk fabrics, based at

least partly on non-graded bivoltine rworld bank and a grant

contribution aw silk.


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iii. The vast and expanding international market for raw silk, silk

fabrics and ready made, based on graded bivoltine silk, an export

potential as yet relatively little exploited by India.

In one of the efforts of the Indian Government to promote

the sericulture Industry, the National Sericulture Project (NSP) was initiated

as a national project operational in 17 states in India. The projected funded

by the Central and the State Governments together with an input of foreign

funds, has a credit portion from the world bank and a grant contribution

from Swiss Development Corporation. The project was started in 1989 for a

period of six years with the objectives oriented toward increased production,

improved productivity, quality and equity. One of the critical elements taken

into consideration by the project was the dominant involvement f the

Central and State Government Organisations in the promotion of sericulture.


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CHAPTER III

COMPANY PROFILE

HISTORY

The silk weaving factory in Mysore, presently owned by KSIC,

was established in the year 1912 by the Maharaja of Mysore province.

Initially the silk fabrics were manufactured and supplied to meet the

requirements of the royal family and ornamental fabrics to their armed

forces.

The unit was started with 10 looms and gradually increased

to 44 looms over a period. The looms and preparatory machines were

imported from Switzerland and was the first of its kind in India. After India

gained Independence the Mysore state Sericulture department took control

of the silk weaving factory.

KSIC Ltd was established on 18 April 1980 with assistance

by Government and World Bank scheme under integrated Karnataka

sericulture project. KSIC is the only organisation in the country

commanding the entire gamut of silk production right from the reeling of

cocoons to the weaving of pure silk fabrics, under one roof.

In 1980 the silk weaving factory was handed over to

Karnataka Silk Industries Corporation Ltd., of Karnataka enterprises and is

popularly known as KSIC. The take over was enthused by effecting

modernization and expansion assisted by the World Bank to the tune of Rs.

27.30 crores integrated under Karnataka sericulture project.


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INTRODUCTION

Indian history is waking up to the challenges thrown in by

market economy. To survive in this highly competitive scenario, human

resources play a vital role. An organisation is nothing without its “Human

resources”.

Growing global, liberalization policy, technological

advancement, increased competition, privatization are the characteristics of

today’s economy, which emphasizes the crucial role of managing human

resources for the organisations growth and survival and its growing

importance.

The field of human resources management is in a state of

rapid transition. It is only the successful corporate edge in today’s market

place is their ‘people’, and they should manage their human resource in their

“transition”. Managing human resources is an extremely important part of

making an organisation work well.

Managing human resources means acknowledging that the

humans in the organisation are the most important part of getting thing

things done. The human resource approach assumes that no amount of

clever work with figures, or the latest technical equipment, will deliver

anything unless people agree to work in co-ordination with each other. Thus

is applies to everyone in the organisation.

“Management is the method of effectively utilizing available resources for

the purpose delivering goods service to the maximum satisfaction of

maximum number of people”.


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Mysore is rich for its Royal heritage and Grandeur and it is no

surprise that the silk produced there reflect the traditional splendour through

its rich yet delicate motifs. The name Mysore silk is a befitting tribute to its

ancestry. KSIC the proud inheritor of this royal legacy, has treasured it for

over seven decades, has been producing 100% pure silk with pure gold zari.

We are in the business of manufacturing quality silk

products of varied designs for end user consumption. The products include

finest of designer silk sarees, salwar kameez, shirts, kurta’s, silk dhoti and

men’s tie. The silk products are manufactured in our factory located in

Mysore district of Karnataka state.

The silk weaving factory in Mysore, presently owned by

KSIC, was established in the year 1912 by the Maharaja of Mysore

province. Initially the silk fabrics were manufactured and supplied to meet

the requirements of the royal family and ornamental fabrics to their armed

forces.

The unit was started with 10 looms and gradually increased

to 44 looms over a period. The looms and preparatory machines were

imported from Switzerland and was the first of its kind in India. After India

gained Independence the Mysore state Sericulture department took control

of the silk weaving factory.

KSIC Ltd was established on 18 April 1980 with assistance

by Government and World Bank scheme under integrated Karnataka

sericulture project. KSIC is the only organisation in the


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Country commanding the entire gamut of silk production right from the

reeling of cocoons to the weaving of pure silk fabrics, under one roof.

In 1980 the silk weaving factory was handed over to

Karnataka Silk Industries Corporation Ltd., of Karnataka enterprises and is

popularly known as KSIC. The take over was enthused by effecting

modernization and expansion assisted by the World Bank to the tune of Rs.

27.30 crores integrated under Karnataka sericulture project.


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COMPANY VISION AND MISSION

VISION

“To provide employment directly and indirectly by producing goods,

products and marketing effectively in the market”.

MISSION

“Manufacturing and marketing of Mysore silk sarees”.


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GROWTH AND DEVELOPMENT

The Karnataka Silk Industries Corporation (KSIC) has been awarded

the certificate of Geographical Indication for Mysore Silk, elevating it to a

brand name for its exclusive use. It’s now official; Mysore Silk belongs to

Mysore district.

The Karnataka Silk Industries Corporation (KSIC) has been

awarded the certificate of Geographical Indication for Mysore Silk,

elevating it to a brand name for its exclusive use. Henceforth, all Mysore

Silk sarees sold by the KSIC will come with the logo IPI, meaning

Intellectual property India.

KSIC is also the first state government enterprise to get a

logo from the Geographical Indication Registry (GIR), a Central

government body based in Chennai. GIR was formed to protect the

Intellectual Property Rights for Indian goods under the Geographical

Indication of Goods (Registration and Protection) Act, 1999.

The GIR Certificate is a sign used on goods that have a

special geographical origin and possess qualities or reputation of their place

of origin.

The KSIC also will have the patent rights of Mysore Silk

brand and no other organisation can use the same name for other silk

products. The other products which have been awarded GIR Certificate

include Kanjeevaram sarees, Basmati Rice,

Swiss watches and Dutch Tulips.


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PRESENT STATUS OF THE INDUSTRY

KSIC produces 6,000 sarees every year and, armed with the GIR

Certificate, KSIC now plans to have a distributor in every state.

EXCLUSIVE STATUS

Manufacturers or traders can use the word ‘Mysore Silk’ to

market their silk fabric without KSIC’s nod product must be made in

Mysore district penal action for unauthorised use. Every Mysore silk saree

will carry a logo- Intellectual Property India.

The two pillers of Korean manufacturing sector are textile

industries (KSIC code 32) and machinery, equipment and electronics

industries (KSIC code 38). The output share of textile has decreased from

21.8% in 1970 to 13.7% in 1990 while that of machinery and equipment has

increased from 12.2% to 34.1%.

BRIEF ON PRODUCT

KSIC is the only organisation in the country commending the

entire gamut of silk production right from reeling of cocoons to the weaving

of pure silk fabric of various shades and designs, all under one roof. KSIC

uses only high quality pure natural silk and 100% pure gold zari. The zari

never turnish and will look fresh even over a long period of usage. KSIC is

the only organisation to give guarantee for its zari saree in the form of

embroidered code No. which is unique to each saree.


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Printing Master

General Manager PERSONAL SECRETARY

Personnel Manager

DY. Manager Accounts

Purchase and stores officer

Labour welfare Officer

AssistantDying Master

Dy. ManagerProduction

Weaving Master

AssistantsAsst. Throwing

Maintenance eng. Mech. /Electrical

Assistant

Security

Asst. Manager casting

tor First


CHAPTER IV

ORGANISATION CHART


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General Manager

Personnel Officer

Special Officer

Purchase and stores officer

Asst. Accounts Officer

PERSONAL SECRETARY

Silk Store Keeper

Asst. Manager - Maintenance Mech./Electrical

Asst. stores cum Purchase officer


ORGANISATION CHART ( T.NARASIPURA

PLANT)


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CHAPTER V

FUNCTIONAL DEPARTMENTS

PERSONNEL DEPARTMENT

Personnel management is concerned with people at work and its

aim is to develop good relationship between management and employee.

Personnel management is that part of total management of an organisation,

which specially deals with human resources in respect of

a) Their procurement.

b) Their development.

c) Their motivation, towards the attainment of organisational

objectives.

DEFINITION

Edwin Bb Flippo “The personnel function is concerned with

the procurement, development, compensation, integration and maintenance

off the personnel of an organisation for the purpose of contributing towards

accomplishment of the organisation’s major goals”.


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PERSONNEL DEPARTMENT IN KSIC LTD.

Personnel department in KSIC Ltd. is a very important and clearly

defined department. The department performs the personnel and

administrative functions. It has a direct link with the employees and

understands their needs and wants. The personnel officer is in charge of this

department and under him junior Superintend, junior Assistant Steno

Receptionist, Driver, Peon etc.

FUNCTIONS OF PERSONNEL DEPARTMENT

1. Recruitment and selection

2. Training

3. Provide sound program of salary and wage administration

4. Allowances for the employee

5. Provide maintain safety measures

6. Keep employment records

7. Handle labour problems and employee disputes

DUTIES OF PERSONNEL OFFICER

1. To arrange for appointment of personnel.

2. To arrange recruitment as identified.

3. To comply with all statutory rules relating to personnel and

Administrative matter.


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4. To provide job security, job enlargement.

5. To provide sound promotion policy providing simple scope for

self advancement.

6. To ensure statutory compliances of ESI, PF etc.

7. To collect analyse and present the required data for such

discussion or negotiation between the board of director and

the trade union.

8. To provide guidelines of the security officer for the

implementation of security measures.

9. To attend labour courts and conciliations by the labour and other

departments.

10.To prepare and maintain upgradation, seniority list of all the

employees of the company.


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MANPOWER IN THE KSIC LIMITED

The total strength of the employees in KSIC Ltd in 31/03/2005 was 845

according to the records it was 895 in 31/03 2008.

1. MANPOWER OF KSIC

Category of employees No. of employees

Executive level 9

Middle level executives 17

Other office staff 212

Workers 607

Total 845


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RECRUITMENT

The method by which the company recruits labour is

1. Direct recruitment.

2. Public service commission.

3. Employment exchange.

All employees of the individual corporation and

companies excluding workers are defined in the factories Act and excluding

persons employed in the supervisory or managerial capacity whose basic

wages (starting) excluding DA and other allowance exceeds Rs. 700 are to

be recruited through PSC.

Clerical post such as Steno- Typist, Junior Assistants, Driver, and

Receptionist cum Telephone operator, Maintenance Assistants etc. are filled

up by under PSC recruitments. Managerial supervisory and workers

vacancies are filled up by direct recruitment. The advertisement is published

in the newspapers to fill up the vacancies. The Board of Director will

nominate a selection council to interview and select the direct recruitment

employees.


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TRAINING

Training means to give information or skill through

instructions or practical. It is a method for increasing the knowledge and

skill of the people for a specific job.

“Training is the art off increasing the knowledge and skills of

employees for doing a particular job”.

The Training methods are:

1. On the job training

2. Off the job training

3. Apprenticeship training

ON THE JOB TRAINING

This is a common used method for training the operative

personnel. The workers are trained under the same type of conditions they

have to work in future. On the job he can experience the conditions and

requirements of actual work situations.


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OFF THE JOB TRAINING

Off the job training generally consists of conferences,

seminars, lectures, group discussions, case studies, programmes,

instructions etc.

APPRENTICESHIP TRAINING

In apprenticeship training a worker is appointed as an

apprentice. The company gives apprenticeship training in the following

trades.

a. Electrical

b. Plumber

c. Fitting

For selection or incumbent in cash trade, company seeks the list from the

regional training centre, as per the rules.


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REMUNERATION TO EMPLOYEES

The minority reward paid by the management to worker or an

employee for the performance of the assigned task is called “wages” or

“salary”. Salary is the remuneration paid to non operative staff, salaries are

paid on a monthly basis to office staff, managers, and technical advisors etc.

wages is the remuneration paid to the workers involved in production. Work

and who’s output can be directly measured. Some employees are working

on daily wages.

2. LEAVE POLICIES

STAFF WORKERS

Casual Leave 12 Days -

Earned Leave 30 Days 14 Days

National Holidays 15 days 15 Days

Stick Leave 10 Days 13 Days

Encashment of earned leave is permitted only in a year.


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WELFARE MEASURES

Employees will get PF, ESI, Minimum Bonus and Gratuity

benefits.

BONUS FOR EMPLOYEES

The word bonus denotes an incentive payment to the workers

aimed at enhancing their efficiency and loyalty to their organisation.

Promotion takes place when an employee moves to a higher

than once formerly occupied. His responsibility, status and pay also

increase; the promotions method adopted here is “Seniority basis”.

RELATIONS BETWEEN MANAGEMENT AND UNION

Most of the employee’s opinion is that there is a healthy

relationship between the management and union. So management must take

necessary steps to maintain this good relationship. So there is no problem

from the part of the union.


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ORGANISATIONAL SETUP OF PERSONNEL MANAGEMENT

1. Security

2. Time Office

3. Telephone

4. Vehicle

SECURITY OFFICE

Security officer is the head of the security office and under him

other security guards.

DUTIES OF SECURITY GUARDS

1. To use gate pass

2. Safeguarding factory premises

OFFICE TIME

Under this section is a timekeeper and a clerk. Their duty is

to see that the employee reports in time.


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WORKING TIME

Office staff - 10.00am- 5.30pm

Factory workers - 8.30am- 5.00pm

VEHICLES

The security guards are in charge of incoming and

outgoing vehicles. A separate sheet has kept for the vehicles.

TELEPHONE

The telephone operator is in charge of all the incoming and

outgoing call during office time. Security officer in the gate operates the

calls, which are coming after office hour.


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DEPARTMENTAL CHART


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Personal Officer

Junior Superintend

StenoReceptionist

DriverPeon

Junior Assistant


SPAN OF CONTROL

The personnel officer is in charge if this department and under

him junior Superintend, Junior Assistant, Steno, Receptionist, Driver, Peon.

PURCHASE AND SALES DEPARTMENT

In ordinary sense the term purchasing is the procurement of

materialism, machinery and tools on payment. But today purchasing has

acquired new dimensions and such as it may be defined as “the functions of

procurement with a view to reduce the investment, variety and vale of

materials so as to facilitate the standardization and competitive

marketability of the product”.

Functions of purchase department in KSIC

To maintain regular flow of materials.

To purchase at a competitive price, the right quality from a right source.

To ensure higher productivity of men, machine and materials.

To ensure production of better quality of products at competitive costs.


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Methods of purchasing

KSIC adopt centralized purchasing. It includes purchase of raw

materials, stores, land and equipment. Fund, stationary, supplies, chemicals

etc all bulk purchases are petty purchases are made though this department

except maintenance purchase. Maintenance purchases are made by

administration section.

Procedure in the purchase department

Receiving purchase requisition:

This stores office as and when purchase requisition or intends are

received from the concerned department. It should be done before two or

three weeks.

Exploring the source of supply:

The selection of right source of supply is very important from the

point of view of getting the materials in the time and desired quality at a

price. The different categories of suppliers are found out through

advertisement, tender, etc. the quotations are compared with others and from

this the best is selected. The chemicals are purchased by yearly quotations.


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In KSIC, two types of suppliers are found.

Manufacturing suppliers and

Distributors and commission agents.

QUALITY CONTROL

The company has been set up quality control sections of

quality control and development. The company has continues research and

development programmer a results off which, they can identify new product

lines. The quality control ensures the consistent quality products.

OBJECTIVES OF QUALITY CONTROL

1. Continue improvement in operations.

2. Improvement in export turnover.

3. Consumer satisfaction.


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FUNCTIONS OF QUALITY CONTROL

Quality inspection

Quality of silk and fabrics checked during various stages of production such

as dyeing, weaving, stenciling etc, if the quality of the product is beyond the

standards prescribed then it is rejected.

PRODUCT DEVELOPMENT

This function includes the development of original products,

modifications etc. factions are done with the tastes and preference of the

customers.

DESIGNING

Designing of silk products are done by both designers of

international reputes and national reputes. They create new concepts and

trends in the area of weaving color combinations.


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MARKETING DEPARTMENT

Marketing is the performance of business activities that direct the

flow of goods and services from the producer to the customer. It is a system

of interacting business activities designed to plan, promote and service to

existing and potential customers. The main function of marketing is to view

the customer as the very purpose of the business. It emphasizes on

identification of a market opportunity and fulfilling the needs of the

customers. Without marketing there is no consumer and without the

customer there is no use for the product or service the company is

producing.

At KSIC, the marketing department acts as a guide, and lead the

company’s other departments in developing, producing, fulfilling and

servicing products and services for their customers. Communication is vital

and the marketing department typically has a better understanding of the

market and customer needs. The goals and guidelines set by the Marketing

Department are in line with the vision and mission of the company. The

upper management is also involved in and endorses cooperation by all

departments in following and implementing the plan and integrating a

consistent message into all communication channels.

ELEMENTS OF MARKETING MIX

1. Product

Marketing department ensures that the product is of the same grade as

specified by the customers and meets the quality standards.


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2. Price

The prices are based on pricing policies taken by the company based

on the market conditions. The pricing decisions are taken by the Marketing

Department after studying the market conditions and also comparing the

competitor’s price.

3. Promotion

It deals with advertising and sales promotion for the product. Since

the company goes for Industrial marketing department, mainly on electronic

segment, it concentrates on direct marketing as a means of promotion which

enjoys the advantage of two way communication.

5. Place

In this industry the place is not that much important. The production

plant is setup in Mysore.

COMPETITORS

The major competitors in India Kalyan Silk, Chennai Silk, Seemati

Silks, Kanchipuram silk, etc.


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ORGANISATION CHART FOR MARKETING DEPARTMENT


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HOD MARKETING MANAGER

ASSSSISTANT MANAGER

MARKETING OFFICER

SALES OFFICER


PRODUCTS OF KSIC LTD


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Crepe Pallu Zari Stripes Body Plain


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Crepe Pallu Zari Stripes Body Butta,

Crepe Pallu Zari Stripes Body Small Checks,

Crepe Pallu Zari Stripes Body Medium Checks.

Georgete Tissue Pallu Zari

Crepe Tissue Pallu Zari Stripes Body Tissue

Georgete Pallu Zari Checks Body Plain


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Stripes Body Tissue

Crepe Rich Pallu Stripes Body Lines Crepe Pallu Mango Body Plain

Crepe Pallu Zari Butta Body Plain

Crepe Pallu Zari Checks Body Checks

Crepe Rich Pallu Zari Checks Body Plain


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Crepe Pallu Zari Butta Bar Stripes Body Lines

Crepe Rich Pallu Zari Body Checks All Over

Crepe Pallu Zari Stripes Body Lines


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Crepe Pallu Printed Body Print All Over

Crepe Pallu Zari Printed Body Print All Over


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PRODUCTION DEPARTMENT

DEFINITION:

“Production is the making of goods for saleor the rendering of paid

services. The making of goods, however, must not be interrupted too

literally to mean the creation of some material object; we do not so much

make things as make them more serviceable. We create, not material object,

but utility”.

PRODUCTION DEPARTMENT IN KSIC LTD

The production department is largely connected with

manufacturing and its allied areas such as, determination of quality and

quality to be produced, production planning, work analysis, quality control

etc. production department also deals with clerical work relating to various

activities of a production of a finished products, material requisition, stock

records etc. production department is headed by Production Manager. Plant

Engineer, in charge man, Maintenance Assistant and various Supervisors.


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PRODUCTION

Production is concentrated in the existing two plants namely

1. Silk weaving and printing plant (Mysore)

2. Silk filature plant.

1. Mysore- Silk weaving and printing silk products

The Factory is located in the heart of the Mysore city and is

spread over acres. The raw silk yarn Filatures obtained from T. Narasipura

factory and open market are put through various process and quality silk

products are produced for end user consumption. The factory has an

installed capacity of 8, 00,000 Mtrs per annum. The factory is provided with

various high end equipments so as to produce best of silk.

The factory started with 10 looms in 1930 under the rulers of

erstwhile Mysore Kingdom today boasts of more than 159 looms, two

warping machines & Pirn Machines and many number of preparatory

machines. Most of the machines are imported from Switzerland and Japan.

KSIC silk product are well appreciated in the market due to its 100% pure

silk blended with 100% pure gold Zari (65% of silver &0.65% of Gold).The

sarees manufactured are of unmatched quality come in varieties to the

customers tastes viz: Crep de Chine, Georgette, Zari printed crepe silk

sarees, semi crepe sarees. The sarees are printed or dyed. The sarees come in

a splash of Over 100 different colors and any numbers of design


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Combinations some of the design combinations are:

Emroidery design saree

Big Butta Pallu saree

Rich Pallu saree

Jawar Border saree

Small Mango saree

Zari printed saree

Saree tissue Saree

Traditional Zari saree

Checked zari saree

Mango Border saree

Sunrise Design saree

Butta Pallu saree

Double Line Checks saree.


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Based on the taste of the end consumers the saree are printed and Dyed with

suitable eye catching colors. Various approved quantity of approved

chemicals are added at various stages as per silk manufacturing standards to

retain the luster and quality of the silk fabrics. The sheen and the visual

luxury of the crepes are only to be experienced. At 75 gms per mtr, the

KSIC silk sarees have an unmatched drape. These crepes have delicate

stands of zari interwoven in spectacular designs, in borders and pallu. The

printed crepes are tributes to designing and come with a double advantage

of possessing the crepe’s softness and a vibrant range of designs from floral

to geometric.

To protect esteemed customers imitation of KSIC silks, KSIC have

given a special embroidered number for each one of the sarees with unique

number and hologram.

Other products of silk include soft silks, hankeys, Neck ties,

Stoles, Cravats, dupion fabrics etc.

2. T. Narasipura- Silk filature

Silk Filature refers to raw silk manufacturing unit. The unit

manufactures raw silk yarn and transfer to meet the raw material

requirement of silk weaving factory in Mysore.

The factory is located in T. Narasipura, Mysore district in an area of

approximately 15 acres. The factory is headed by a General Manager. The

factory supplies raw silk yarn to their own silk weaving factory located in

Mysore. Approximately 1000 Kgs. Of cocoons are purchased daily from

government controlled market depending on needs and raw silk yarn known

as filatures are produced. The purchase is done on almost daily basis as the

purchased cocoon cannot be stored for than 2 to 3 days.T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE MBA 3rd Sem

- 46 -


CAPACITY

Installed capacity : 225kgs/day

Actual production 120kgs/day

The factor uses the best technology per say in raw silk manufacturing. It

follows the international silk association standards and has the following

stringent parameters for testing using standard machineries.

a) Renditta-

This refers to amount of Kgs of cocoons required to produce 1 Kg

Of raw silk yarn.

b) Type of Cocoon-

Multivoltaine Coccon : 8 to 8.5 Renditta

Bi-Voltaine Cocoon : 6.5 to 7 Renditta


- 47 -


Grade of Raw silk yarn

Grade A, Grade 2A, Grade 3A, Grade 4A, and Grade 5A.

International silk association standards to set the following

Denier- weight in grams/Mtr

Tenacity

Elongation

Cleanness

Neatness

The silk filature plant uses modern Japanese & Korean Machineries havin

denier control to produce quality silk yarn.

The unit uses two types of reeling

1) Automatic- Japanese Machinery

2) Semi Automatic- Korean Machinery

The Cocoon purchased from Government control market undergoes various

stages of production viz; Sorting, boiling, & reeling. Silk yarn is passed

through buttons and pulley (Croiser) to maintain tenacity and elongation and T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE MBA 3rd Sem

- 48 -


Wound on a reel. Re-reeling is done to make the silk yarn into a continuous

length and convert it into hanks. Reeled yarn is passed through yarn and

made into big reel. The approximate weight of the yarn is 100 to 120 gms.

To maintain quality the silk yarn undergoes various processes like silk

skinning to remove gum spots manually. The unit is in the process of

implementing ISO 9002 Standards.


- 49 -


FINANCE DEPARTMENT

DEPARTMENTAL CHART

Financial management is responsible for estimation of

financial resources. Finance is lifeblood of every business. Therefore it is

most important and complicated for business.

Finance department in KSIC LTD is needed by finance

manager and under him accountant, junior superintend and cashier.T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE MBA 3rd Sem

Account Grade

Account Grade-2

Cashier Junior Assistant

- 50 -

Finance Department


FUNCTIONS OF FINANCE DEPARTMENT IN KSIC

1. Finalization of account.

2. Preparation of wage sheet.

3. Maintain cost records.

4. Budget making and set target to be achieved.

5. Set out the financial requirements, loans, income expenditure

etc.

DUTIES OF FINANCE MANAGER

1. Keep the books of accounts of the company up-to-date.

2. To inspect the accounts of the company.

3. To monitor all the financial transaction of the company.

4. To arrange the reconciliation of the books of accounts of the

company with the books of accounts of the company.


- 51 -


REGISTERS AND BOOKS OF ACCOUNTS

The manager should keep proper books of accounts,

register and other documents. He should maintain proper and accurate

records of accounts of working of the company. Copies of the balance sheet

shall supply free on demand of any members.

The books generally kept in finance department are

1. Cash book

2. General Ledger

3. Bank book

4. Sales general

5. Purchase general


- 52 -


3. Comparative Statement showing the fabrics sales from April

2003 to March 2004 (Rs. in Lakhs)

Sl.

No.

Months Zari Printed Dress

Material

Total

Meters

Gross

Sales

Discount

Rs.

Net

sales

Rs.

1 April 2835 110 663.40 16860.90 123.49 10.85 112.64

2 May 3667 165 1154.40 22230.40 161.03 16.57 144.46

3 June 2818 115 838.70 16970.20 124.88 11.30 113.58

4 July 3653 247 873.70 22323.70 163.96 22.06 141.90

5 August 5412 336 1250.00 32864.00 243.22 34.83 208.39

6 September 2449 130 649.00 14833.50 106.59 8.45 98.14

7 October 6789 481 3929.00 43914.00 316.19 48.30 267.89

8 November 3811 945 2990.00 29148.00 189.80 26.32 163.48

9 December 15623 2867 8451.50 110146.50 716.77 227.07 489.70

10 January 4168 201 21001.20 45030.70 201.69 32.75 168.94

11 February 4106 194 7503.95 31153.95 211.88 52.09 159.79

12 March 12253 645 9996.05 80935.05 562.10 140.61 421.49

Total 67584 6436 59300.90 466410.90 3121.60 631.20 2490.40


- 53 -



to March 2005 (Rs. in Lakhs)

Sl.

No.


Material

Total

Meters

Gross

Sales

Discount

Rs.

Net

sales

Rs.

1 April 5189 218 3443.20 33181.70 238.43 65.79 172.64

2 May 3214 247 1355.70 20391.20 149.62 25.18 124.44

3 June 2148 159 2291.40 14979.90 97.71 5.26 92.45

4 July 2686 468 1910.50 19257.50 118.3 19.06 99.24

5 August 5068 493 2024.00 32609.50 227.35 25.67 201.68

6 September 4367 199 1265.15 26378.15 191.48 22.17 169.31

7 October 3669 182 1413.00 22593.50 168.51 19.39 149.12

8 November 5023 239 1300.50 30241.50 230.71 26.24 204.47

9 December 3697 113 1026.75 21981.75 163.24 19.02 144.22

10 January 5671 115 180.70 32003.70 259.10 48.79 210.31

11 February 4491 124 1989.75 27372.25 196.46 37.77 158.69

12 March 7896 147 769.65 45006.15 361.53 65.20 296.33

Total 53119 2704 18970.30 325996.80 2402.44 379.54 2022.90


- 54 -



to March 2006 (Rs. in Lakhs)

Sl.

No.


Material

Total

Meters

Gross

Sales

Discount

Rs.

Net sales

Rs.

1 April 8087 141 403.70 45658.00 378.20 81.27 297.13

2 May 4574 120 419.05 26236.00 206.22 29.62 176.79

3 June 3992 123 300..90 22933.40 182.62 26.22 156.53

4 July 3946 82 152.75 22306.75 192.41 28.62 163.79

5 August 5220 201 109.75 29925.25 261.08 36.89 224.48

6 September 4241 145 230.45 24353.45 208.40 29.26 179.15

7 October 6836 179 431.50 39014.00 341.04 47.23 294.11

8 November 5262 165 5053.50 34902.00 264.38 51.38 213.15

9 December 4492 294 5316.30 31391.80 243.85 40.42 203.62

10 January 4386 241 419.75 25868.25 229.96 30.59 199.56

11 February 3202 149 345.35 18775.85 173.45 23.90 149.96

12 March 12259 369 645.35 70099.35 701.16 148.73 552.42


- 55 -


6. Statement showing the fabrics sales against the target

during the month of June 2007

Sl. No.

Sales

Point

Target

(Rs. in Lakhs)

Annual Jun-

07

Rs. Rs.

Sales Achieved

Jun-07 up to jun

Rs. Rs.

Correspond

-ing Sales

during June

2006

Cumulative

Sales

corresponding

year up to

June 06

1

Exhibitions/

Institutional

Sales

400 33.00 2358043 277733 2,777,338 6,394,883

2

Bulk buyers/

Distributors

100 8.00 11630 549224 - -

3

KSIC

Showrooms

3860 258.00 31771104 8285797 29,849,646 66,027,141

4

Consignment

Sales

50 4.00 129,465 592, 975 198,462 595,874

Total 4410 303.00 92913049 3282544 32,825,446 73,017,898


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2006 to till date 2007 (Rs. in Lakhs)

Sl.

No.


Material

Total

Meters

Gross Sales Discount

Rs.

Net sales Rs.

1 April 3517 144 1908.70 22044.20 19,479,773 3082802 16413988

2 May 3555 172 256.05 20754.55 20,712,679 2843725 17880862

3 June 5210 251 328.55 30364.05 32,825,446 5793904 27054445

4 July 4417 99 203.25 25041.25 27,229,934 4136772 23093162

5 August 6679 164 268.70 37905.20 40,716,879 7763246 32953633

6 September 3510 119 399.30 20358.80 21,405,750 3375383 18030367

7 October 7496 259 376.35 43028.85 46,074,549 6324269 39750280

8 November 4400 90 564.65 25259.65 26,916,396 4755502 22160894

9 December 6913 270 646.00 40152.50 41,848,919 9792244 32056675

10 January 5098 179 360.65 29384.15 31,069,217 5632113 25437104

11 February 3553 108 498.85 20634.35 21,544,738 3841628 17703110

12 March 12353 659 1812.39 73378.39 77,264,568 16549915 60714653

Total 66701 2541 7623.44 388305.94 407088848 73891503 333197345


- 57 -



to till date 2008

Sl.

No.


Material

Total

Meters

Gross

Sales

Discount

Rs.

Net sales

Rs.

1 April 7119 183 484.80 40,645.80 30,699.659 4,624,029 26,101,258

2 May 3942 490 332.70 24,708.70 27,943148 5,006,581 22,962,225

3 June 4832 173 482.35 28,009.85 34,270,242 6,670,576 27,629,874

4 July - - - - - - -

5 August - - - - - - -

6 September - - - - - - -

7 October - - - - - - -

8 November - - - - - - -

9 December - - - - - - -

10 January - - - - - - -

11 February - - - - - - -

12 March - - - - - - -

Total 15893 846 1299.85 93364.35 92,913,049 16,301,186 76,693,357


- 58 -


9. BALANCE SHEET AS AT MARCH 31, 2008

Schedules 2008 Rs. 2007 Rs.

SOURCES OF FUNDS

Shareholders’ Funds

Share Capital

Reserves & Surplus

Loan Funds:

Secured Loans

Unsecured Loans

APPLICATION OF FUNDS

Fixed Assets:

Gross Block

Less: Deprecation

Net Block

Capital Work-in-Progress

Investments

Current Assets, Loans &

Advances:

Inventories

Sundry Debtors

Cash & Bank Balances

Other Current Assets

Loans & Advances

1

2

3

4

5

6

7

8

9

58,00,47,000

-

-

6,01,39,259

64,01,86,259

28,21,71,740

24,15,79,358

4,05,92,382

62,49,494

4,68,41,876

13,100

10,34,57,618

3,69,68,171

8,35,47,575

25,09,974

7,85,88,486

58,00,47,000

6,01,39,259

64,01,86,259

28,08,63,383

24,42,14,029

3,66,49,354

3,66,49,354

14,100

10,18,35,660

2,69,92,017

1,22,42,766

2,41,50,475

7,25,20,462


- 59 -


Less: Current Liabilities &

Provisions:

Current Liabilities

Provisions

Net Current Assets

Profit & Loss Account

Significant Accounting

Policies & Notes on Accounts

Balance Sheet Abstract &

company’s General Businesses

Profile

10

16

17

30,50,71,824

6,51,81,258

8,92,80,165

15,44,61,423

15,06,10,401

44,27,20,882

64,01,86,259

23,77,41,380

5,90,34,194

6,59,78,179

12,50,12,373

11,27,29,007

49,07,93,798

64,01,86259


- 60 -


10. PROFIT AND LOSS ACCOUNT FOR THE YEAR

ENDED MARCH 31, 2008

Schedules 2008 Rs. 2007 Rs.

INCOME

Sales

Other Income

EXPENDITURE

Materials Consumed

Operating Expenses

Interest

Depreciation

Profit/(Loss) For the year

Before non-recurring

item

Prior Periodic

Income/(Expenditure)(Net)

Profit/(Loss) for the year

before tax

11

12

13

14

15

40,85,44,236

56,30,321

41,41,74,55

14,16,96,819

22,21,62,180

30,892

25,84,890

36,64,74,781

4,76,99,776

10,68,000

4,87,67,776

33,59,15,125

4,47,37,887

38,06,53,012

11,99,40,214

20,39,06,590

17,92,432

25,14,255

32,81,53,491

5,24,99,521

20,726

5,25,20,247


- 61 -


Less: Provision for Fringe

Benefit Tax

Net Profit/(Loss) after

Tax

Accumulated Loss

Brought Forward

Profit/(Loss) carried

forward to Balance Sheet

Significant Accounting

Policies & Notes on

accounts

Balance Sheet Abstract &

Company’s

General Business Profile

16

17

6,94,860

4,80,72,916

(49,07,93,798)

(44,27,20,882)

8,57,394

5,16,62,853

(54,24,56,651)

(49,07,93,798)


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CHAPTER VI

SWOT ANALYSIS

STRENGTHS:

1. KSIC is a public limited company.

2. KSIC awarded the certificate of geographical indication for Mysore

silk, elevating it to a brand name for a exclusive use.

3. KSIC is the only organisation to give guarantee for its zari sarees in

the form of embroider code number which is unique to each saree.

4. KSIC uses only high quality pure silk and 100% pure gold saree.

5. KSIC have a patent right of Mysore silk brand.


- 63 -


WEAKNESS:

1. The technology which is used in KSIC is not up to the standard.

2. There is lack of skilled labour in KSIC Ltd.

3. There are many highly competitive companies in the market.

4. More than 45 dealers in Bangalore were misusing the name of

Mysore silks.

5. Other silk products are sold in the name of Mysore silks.


- 64 -


OPPORTUNITIES:

1. Exports the silk products to other countries.

2. Providing employment opportunity for rural people.

3. Employees will get PF, ESI, minimum bonus and gratuity benefits.

4. Giving apprenticeship training for workers.


- 65 -


THREATS:

1. KSIC Managing Director P Vijayan told Deccan Herald that

the certificate would help control misuse of the brand name.

During an investigation in 2004.

2. KSIC found that more than 45 dealers in Bangalore were

misusing the name of Mysore silk.

3. They continued to market other silk products in the name of

Mysore silk, after which their dealership was cancelled, he

added.

4. The KSIC will also be coding every saree borders.

5. The code will contain the name of weaver and date of weaving.

In case of complaints, the weaver can be traced immediately.

6. KSIC produces 6,000sarees every and armed with the GIR

certificate, KSIC now plans to have a distributor in every state.


- 66 -


CHAPTER VII

FINDINGS AND SUGGESTION:

FINDINGS:

1. Lack of direct feed back.

2. Improper client relationship.

3. Less unique experience.

4. Control over resources.

5. Lack scheduling own work.

6. The person selected as a supervisor may not be qualified and this may

lead to poor supervision.

7. Change in technology.

8. Misunderstanding between the workers and managers.

9. Lack of raw material supply.

10.Direct feedback.


- 67 -


11.Lack of communication skills.

12.Slow growth of the organisation.

13.Large number of workers.


- 68 -


CHAPTER VIII

SUGGESTION AND RECOMMENDATIONS

1. DIRECT FEEDBACK: Employees should be able to get immediate

knowledge of the results they are achieving. The evaluation of

performance can be built in to the job (as in an electric spell-checker

indicating the presence or absence of errors) or provided by a

supervisor.

2. CLIENT RELATIONSHIP: An employee who serves a client or

customer directly as an enriched job. The client can be outside the

firm (such as a mechanic dealing with a car owner) or inside (such as

computer operator executing a job for another department).

3. NEW LEARNING: An enriched job allows its incumbent to feel

that he is growing intellectually. An assistant who clips relevant

newspaper articles for another department.

4. UNIQUE EXPERIENCE: An enriched job has some unique

qualities or features such as quality controller visiting a supplier.

5. CONTROL OVER RESOURCES: For each employee to have

control over his or her resources and expenses. For example, He or

she must have the authority to order supplies necessary for

completing his job.


- 69 -


6. COMMUNICATION SKILLS: Communication skills refers to

clarify of thought correct word usage, grammatical accuracy, proper

delivery of messages, correct spelling and pronunciation and proper

sentences or speeches. An absence of these makes it difficult for the

receiver to understand the message clearly.

7. A qualified person must be selected by an interview.

8. Giving proper apprenticeship training about the new technical

machines to the workers.

9. Well co-operation between the supervisors to the workers.

10. JIT Quality raw materials should be supply at a time.

11. Good relationship between the producers to the clients/customers.

12. Proper communication must be applied to the organisation.

13. Improving the growth of the organisation like, development of

technology, communication skills, quality raw materials and time

management etc.

14. Unnecessary workers to be reduced.


- 70 -


CONCLUSION

An organisation study was conducted in office and factory of KSIC LTD,

Bangalore, which lasted for duration of 6 weeks. The executives were

highly co-operative in sharing the various functions of the concerned

departments. Primary data was collected through question and answer

sessions and secondary data was collected by referring to various journals,

magazines and website of the company.

This organisation study helped me to relate theoretical knowledge with the

practical scenario in the organisation. The ethical values and focus on

customer satisfaction of KSIC LTD was highly impressive. The salary

package paid to the employees is less when compare to any other

companies. It manufactures only sarees and silk products. The company

should provide offers and discounts to attract customers. So this project

gives enough information about the company.


- 71 -


BIBLIOGRAPHY

BASIC MATERIALS USED:

Annual report of KSIC, Ltd.

Profile of KSIC, Ltd.

BOOKS USED:

Drummend Helga, Introduction of

organisation Behaviour .Oxford

University Press, New York, 2000.

Production Management -- K.

Aswathappa

Human Resource Management – P.

Subbarao

Organizational Behaviour -- K.

Aswathappa

WEBSITES:

www.ksicsilk.com

www. [email protected]

www. google.com


- 72 -

mailto:[email protected]

http://www.ksicsilk.com/

Blk 4 & 4 Midl Colr Copys KSIC LIMITED Aziz

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