Final Internship Kecl

Sl. No. Particulars Page No.

1. Objectives and Needs of the Study 02

2. Industry Analysis 03

3. Company Profile & Analysis 04

4. Product Profile 11

5. Functional Departments 16

Manufacturing Department 18

Engineering and Research & Development Department 25

Maintenance and Quality Assurance Department 28

Marketing Department 35

Human Resource Department 42

Finance Department 51

5. “SWOT” Analysis 60

6. Management Problems 63

7. Findings, Suggestions and Conclusion 65

8. Bibliography 68

TABLE OF CONTENTS:

AL – AMEEN INSTITUTE OF MANAGEMENT STUDIES, BANGALORE – 560 027

OBJECTIVES OF THE STUDY:

To study the organizational activities in all functional areas and relate this to theoretical

knowledge acquired.

To understand the various departments procedure in the company.

To gain insight into the new trends in management of the company.

To study methodologies used by the organization to compete with others.

NEEDS FOR THE STUDY:

Practical Knowledge

Practical study of the organization reveals the knowledge regarding various aspects of the

company such as planning, organizing, controlling, staffing etc.

Presentation Skill

The project study helps in improving the presentation skill and communication skill of the

student.

Industrial Exposure

The project study also helps in getting knowledge regarding functional activities of various

departments of the organization such as Marketing, Finance, Human Resource, Production

etc.

SCOPE OF THE STUDY:

This study is an attempt to study the organization as whole and to study the different

departments in detail so that the student gets a detailed knowledge about the organization

from different angles and to study the functions of the different departments which constitute

the organization so as to suggest effective measures such that organization achieves its

objectives.

The study focuses on the departments and their functions and the methods to improve the

organization, hence this study provides a very wide scope for the student to gain an insight

into the practical aspects of the working of an organization and thus increase managerial

skills.


INDUSTRIAL ANALYSIS:

Heavy industry in India comprises of heavy engineering industry, machine tool industry,

industrial machinery and auto industry. These industries provide goods and services for

almost all sectors of the economy, including power, rail and road transport. The machine

building industry caters to the requirements of equipment for basic industries such as steel,

non-ferrous metals, fertilizers, refineries, petrochemicals, shipping, paper, cement, sugar etc.

Heavy electrical industry covers power generation, transmission and distribution and

utilization equipments. Some major areas where these are used are the multi core projects for

power generation including nuclear power stations, petrochemical complexes, chemical

plants, integrated steel plants, nonferrous metal units, etc.

The domestic heavy electrical equipment manufacturers are making use of the developments

of the global market with respect to product designs and upgrading of manufacturing and

testing facilities. The country is planning to add 150000MW power generation’s capacities in

the next ten years this will generate substantial demand for heavy electrical equipments. The

heavy electrical industry is capable of manufacturing up to 400 KV AC and high voltage DC.

In the initial years no overseas co. thought of setting up a manufacturing co. in India, Burma,

Aden, Silon, many of them merchandising and contracting through their local agents in India

like Kilburn & Co, Killick Nixon, F&C, Osder & Co, Balmer lawree, Jessup & co, John

Fleming etc.

After commissioning the Calcutta and Madras power plants, Crompton established its office

in 1899 and 1904 respectively. GEC (India) limited came to India in 1911 as a distributing

co., so did SIEMENS in 1922, Crompton Parikson at Bombay in 1937, Philips Electrical

Company (India) limited at Calcutta in 1937, AEI manufacturing company limited at Calcutta

in 1939, among the Indian companies Bengal Electrical Lamps was established in this era.

Other important co.s likely L&T (Lawren and Turbo) a partnership of two

enterprises in 1938, Bajaj electrics in 1938, ESS, KAY engineering in 1935, Jyothilimited in

1943, Mysore electricals in 1945 then Kirloskar electrics in 1946 and GFM manufacturers

etc.


COMPANY PROFILE:

Name of the Company : KIRLOSKAR ELECTRIC COMPANY LTD.

Founder : Laxman Rao Kashinath Kirloskar

Date of Establishment : 1946

Sales Head Quarter : Bangalore

Factory Location : Govenahalli, Nelamangala, Bangalore.

Contact Phone No : 08023374865

Authorized Capital : 42 Crores

Land and Building Area : 16 Acres

Factory Aria : 4.81 Acres

Financial Year Turnover : 245 Crores

Auditors:

M/S B.K Ramadhyani and company, Charted Accountants and

M/S Sundar and associates, Chartered Accountants.


COMPANY ANALYSIS:

The Kirloskar Company was established in 1946 by Laxman Rao Kashinath Kirloskar and

it is one of the recognized electric companies. It is one of the leading manufacturers and

suppliers of the electric products in the country.

The company started its production in 1947. It had its initial collaboration with M/s Brush

electrical company USA. The company manufactured its first electric motor in 1948. Now in

its sixth decade company manufactures a wide range of AC and DC motors and generators up

to 5000kw. Even as the company continues to grow its core business of rotating machinery

new horizons have opened up in the field of industrial electronics.

Ravi L Kirloskar, son of the Laxman Rao Kirloskar, built the prime technological skills and

capabilities. The innovative and aggressive power in value engineering, Kirloskar Electric is

well into its tryst with world market. Kirloskar Electric products have had more than a

significant contribution to make to Indi‘s rapidly evolving economy.

The company has signed licensing agreements with world leaders such as Thron-EMI, Fuji

electric and Toshiba among others for the manufacturing of inventors, thirstier, converters

and uninterrupted power sources respectively.

In 2003 Kirloskar electric ltd restructured its unit as Kaytee switchgear ltd. It offers a wide

spectrum of products and services like AC motors, DC motors, transformers and generators

etc. The acceptance of the products in USA, Europe, Canada, Australia, China, Singapore,

South Africa, Malaysia along with the hard to earn certification by world's leading

companies, are the direct result of an ongoing process along with innovation as a way of life

and willingness to take up any challenging customization project and making it a success. In

recent years it has a consistent track record of growth, performance and profitability.

It has project and system group expertise in handling various project viz., Co-generation

projects, Wind energy projects, solar energy projects, Gas based power projects, Diesel based

power projects, Wave energy projects.


The founder of Kirloskar group is late “Laxman Rao Kashinath

Kirloskar”. He was born in 1886 in a village called GULAHASAR in

Belgaum district. He had preference for mechanical from his

school days and therefore came to Mumbai and completed a

course of technical draftsman ship at JJ school of arts. He started

business of selling and repairing the bicycles.

“Engineering Brother Enterprise” was established by Mr.

Laxman Rao & Mr. Kashinath Kirloskar. And Laxman Rao designed

the first KIRLOSKAR product the iron plough was mainly aimed to

benefit the farmers.

In 1946, Laxman Rao was established the “Kirloskar Electric

Company”.

KEC believes that its strength is derived from its people. The company training programmes

for its engineers and continues retraining of its employees gives it a technological and

managerial edge. It is the strength that allow kirloskar to take successfully any new field it

entry to develop its current business and to promote sustained improvements in quality. The

company has one of the finest manufacturing facilities, specialized infrastructure for design,

manufacture and testing; complementing a very high level of application engineering and

total quality concept, contribute to reliability that is trusted in India and Abroad.

KEC makes more than 70 products under 8 product groups catering to core sectors of the

economy like Power Generation, Transmission and Distribution, Industry, Transportation,

Renewable Energy etc.

The KEC Network of 9 manufacturing locations, 34 sales offices spread across the country,

wide network of spares dealers and service centers and hundreds of dealers enables the

company to efficiently serve the customers and advise on suitable products, systems and

services at competitive rates.

Founders:


BOARD OF DIRECTORS:

As on Dec 2009, the Board of Directors of KEC comprises Eleven Directors. The Board

consists of the Chairman & Managing Director, who is a promoter Director, Two Executive

Directors and Six non-Executive Independent Directors. Details are given below:

Executive- whole time Directors:

Mr. Vijay R Kirloskar Mr. Malik P.S.

Chairman and Managing Director Joint Managing Director

Non Executive Independent Directors:

Mr. Lakshmanan A.S. Mr. Agarwal S.N. Mr. Anil Kumar Bhandari Mr. V.P.Mahendra

Mr. Kamalesh Gandhi Mr. D.Devender Singh Ms. Meena Kirloskar

STAKEHOLDERS OF THE INDUSTRY:


The Audit Committee consists of five independent Non-Executive Directors.

SHAREHOLDERS:

The Shareholders/Investors Grievances Committee consisted of three Directors. The terms

of reference to look into the shareholders and investors complaints regarding transfer of

shares, non receipt of balance sheet, non receipt of dividends etc and to redress the same.

REMUNERATION COMMITTEE:

The Remuneration Committee consists of following Directors:

Name Of Director Category

Mr. S.N.Agarwal Chairman

Mr. A.S. Lakshmanan Member

Mr. Anil Kumar Bhandari Member

Mr. Sarosh J Ghandy Member

Ms. Meena Kirloskar Member



Mr. S.N.Agarwal Chairman

Mr. A.S. Lakshmanan Member

Mr. Anil Kumar Bhandari Member

Mr. Sarosh J Ghandy Member

Mr. V.P.Mahendra Member


Mr. Anil Kumar Bhandari Chairman

Mr. Vijay R Kirloskar Member

Mr. P.S. Malik Member

ORGANISATION STRUCTURE:


JOINT MANAGING DIRECTOR

GENERAL MANAGER/UNIT CHIEF

HR

MANAGERPRODUCTION

MANAGER

MARKETING

MANAGER

PLANNING &PURCHASE Mgr.

FINANCE MANAGER

Personnel & Industrial Mgr

Training & Development Mgr

WelfareManager

ManagerAC Product

ManagerDC product

Manager Outsourcing& Production

PlantEngineersEmployees

ManagerAC Product

ManagerDC Product

Assistant

Manager

Assistant

Manager

(V.D.D)

Assistant Manager(M M D)

Employees

Accountsofficer

JuniorAccountsOfficer

Employees

Employees

CHAIRMAN AND MANAGING DIRECTOR

AssistantManager(PP &MM)

AssistantManager(V.D.D)

PROJECTS UNDER TAKEN BY KIRLOSKER ELECTRIC COMPANY:

Kirloskar Electric ventured into Projects and Systems Group (PSG) understanding the

Potential requirement of the industry. With state-of-the art manufacturing support, Projects

and Systems Group has performed the best winning the challenging and reputed orders all

over India.

Switchyards & Power Distribution

Sugar Industry

Cement Industry

Fertiliser Industry

Steel Industry

Co-Generation

VISION, MISSION & QUALITY POLICY:

VISION:

The “Power of Now” is the energy of opportunities that come to us disguised as challenges.

The power of now at Kirloskar electric is the dynamics of making opportunities work as by

meeting client’s tough specifications of cost and quality.

MISSION:

To remain a leading producer of electrical technology products in India.

To continuously grow in our biz and become a significant player in the world market.

To maximise return on investment.

To achieve international levels of excellence in technology and quality.

QUALITY POLICY:

The quality policy of KEC unit-1 shall be to continually improve the effectiveness of the

quality management system, conforming to ISO 9001-2000 standard in design, manufacture,

and market service at competitive prices, Products of such quality which results in customer

satisfaction, quality reputation and market leadership.


PRODUCT PROFILE:

KECL’S RANGE OF PRODUCTS: AC Motors

AC Generators

DC Motors

Electronics

Switchgear

Traction

Transformers

PRODUCTS MANUFACTURED IN UNIT – 1:

AC Motors

AC Generators

DC Motors

Our products are used in :-

• Steel Mills, Paper Mills, Sugar Mills, Cement Plants, Power Plants.

• Petrochemical complexes, Mining Transformers

• Textile Motors for Process Management.

• Agro Based Industries - Flourmills, Dal Mills, Oil extractors, Milk Diaries

• Wind Energy Generators and Transformers

• Telecom for backup power


• Automobile sector for process control in conveyors,

• Crane and Elevator for lifting applications

AC Motors:

Kirloskar Electric was the first company in India to manufacture AC Motors way back in

1948. Since then it has manufactured millions of motors for domestic and International

Market. The wide industrial range is from 0.12 to 20000 kW in frames 63 to 1250. Motors are

offered in open type, closed type and heat exchanger type enclosures. Voltages range from

340 to 13800 V.

Applications :

Industries :Agriculture, Construction, Cement, Paper, Petrochemicals, Steel, Sugar, Textile.

Power Plants : Nuclear, Thermal.Utilities : Cinema, Gas Station, Hospitals, Hotels, Mill, Telecom.Military : Auxiliary power to fire armaments from land & Sea.

High Voltage Motors:FEATURES VALUES/ STANDARDS

Ambient Temperature : -10 to +50deg C

Altitude : Not exceeding 1000 m Above mean sea level

Voltage : 6.6kV, 3.3kV, 11kV +/- 10%

Frequency : 50Hz +/- 5%

1. Mega pack closed type cage & wound 2. Spectrum closed type cage & wound


Low Voltage AC Motors:FEATURES VALUES / STANDARDS

Altitude : Not exceeding 1000mtrs. Above mean sea level.

Voltage : 415V±10% (Can also be offered up to 650V)

Frequency : 50hz. ±5%

1. Rerolling Mill Duty Motor 2. Open type motor

(Ambient temperature 0 to +45°C) (Ambient temperature -10 to +50°C)

3. Primo Series (up to 160 frame) 4. Wound Open Type Series

(Ambient temperature -10 to +50°C) (Ambient temperature -10 to +50°C)

5. Spectrum Series (180 and above frame) 6. Crane Duty Motors

(Ambient temperature -10 to +50°C) (Ambient temperature -10 to +50°C)


AC Generators:

Applications :

Industries : Telecom, Textile, Agriculture.

Military : Battle Tanks, Warships.

Utilities : Fuel Stations, Milk Dairies, Cinema Houses, Nursing Homes,

Constructions and Hospitals.

1. AC Generator 5 to 650 KVA 2. Denki Series

3. Brushless E-Series 4. Brushless Single & Double Bearing LV


Phase Three/Single

Frequency 50 Hz

Voltage 415/220 V

Altitude <1000 mtrs

Speed, rpm 1500

DC Motors:

Applications :

Industries : Cement, Sugar, Rubber, Plastic, Steel, Textile, Paper and Printing.

1. Laminated Yoke DC Motors 2. Aise Series Mill Duty Motors


General Specification

Standards BS 5000 / IS 4722

Armature Voltage 110 TO 1000 V

Field Voltage 180 TO 360 V


RANGE KW FRAME SIZE

SMALL 0.75 to 300 80 to 250

MEDIUM 150 to 1500 280 to 630

LARGE 720 to 6500 710 to 1000

KW range 1.5 to 970 kW

Frame Size 802 to 824

FUNCTIONAL DEPARTMENTS:

Kirloskar Electric Company, Bangalore consists of various departments.

Departments play a vital role in the development of the company. These departments manage

all operations of the company. They are as follows:

PRODUCTION DEPARTMENT

ENGINEERING AND R & D DEPARTMENT

MAINTENANCE AND QUALITY ASSURANCE DEPARTMENT

MARKETING DEPARTMENT

HUMAN RESOURCE DEPARTMENT

FINANCE DEPARTMENT


INTRODUCTION:

In KECL production is the functional area responsible for turning inputs into finished outputs

through a series of production process. The Production Manager in the company is

responsible for making sure that raw materials are provided and made into finished goods

effectively.

PRODUCTION DEPARTMENT STRUCTURE:


UNIT CHIEF

HOD

Mgr.(DC) Mgr.(AC) Packaging and Forwarding

Mgr. (Outsourcing and Production)

Plant Engineers

Shift in charge 1 Shift in charge 2 Shift in charge 3

FIVE PRODUCTION SUB FUNCTIONS:

1. Production and Planning: This section will set standards and targets for each section of

the production process.

2. Purchasing Departments: This department is responsible for providing components and

equipments required for the smooth running of the production process.

3. Stores department : This department in KECL will stock all the necessary tools, spares

and equipment required to service the manufacturing process.

4. Design and Technical support: This department is responsible for researching new ones

or modifying the existing ones.

5. Works Department: This department is concerned with the manufacture of products,

maintenance of production lines and other repairs.


DC shop AC shop

Commutator shop &DC sub assembly

Rotor winding

Coil Winding

AC coil section

AC sub assembly

AC & DC

Completion

and Painting

Rotor &

Stator AC

Winding

Large (AC/DC)Assignment

Medium (AC/DC)Assignment

RESPONSIBILITY OF HOD – PRODUCTION DEPARTMENT:

1. Scheduling the production program to achieve the set targets.

2. Review of manufacturing activities with the shop of supervisors to achieve targets.

3. To monitor and ensure safety precautions are adhered to during production activities.

4. To co-operate with engineering dept. for any design modification or rework activities.

5. Interacting with customers and updating the production status.

6. Improve the stator pressing in co-ordination with supervisors and engineering dept.

7. Identification of resource requirement & provision of adequate resource.

PRODUCTION FLOW CHART


CUSTOMER

REQIREMENT

I

ASSEMBLY

BALANCING

IMPREGNATION & DIPPING

STATOR WINDING ROTOR WINDING

ROTOR COILS

NOTOK, R/W

R/WNOTOK II

SUB DC-ASSEMBLY

SECTION

CUMMUTATOR

SECTION

COIL

SECTION

I - INSPECTION

R/W - REWORK PRODUCTION

&

PLANNING

DESIGN

MANUFACTURING SYSTEM IN KECL:

Based on marketing departments requirement and other documents received by Planning and

material management department the production activity is undertaken. Based on the

requirement of the production department the stamping division plans production activity.

KECL has got production shops which are supported by:-

FEEDER SHOP

This shop supplies the necessary components spares required for the production process. The

feeder shop consists the following.

TOOLS ROOM

Tool room manufactures press tools for the stamping for the units and also supplies to sister

units. It also manufactures figs and fixtures, which is used as production aids.

Basic material used for cutting element is high Carbon and high Chromium steel. It

is hardened to 58-60 degree HRC. This ted is sent to press shop for producing stamping.

SHAFT LINE

Shaft line manufactures shaft for motors and generators against the product shop

requirements.

MACHINE SHOP

Machine shop the components like body, cover, end shield, adaptor plates etc drilled,

machined and taped. It is then sent to the product shop for further processing as per range.


NOT OK

COMPLETION & PAINTING

PACKING &

DISPATCHING

The material required for production of shop floor products as per production programme

shall be produced against the specific LOT no/machine number of the product or combination

of lot number. Except for procurement and of consumable and hardware material

specification and quantity to be produced shall be obtained from the relevant

BOM/Drawing/Data sheet specified for the LOT no/machine no/PERT no. Where even

applicable and on the basis of consumption/stock position /requirement for other it can.

Personnel coming under PP and MM, CMMD, VDD are designated for procurement of

materials in different stages of manufacturing categories of material are as below:

Stator/Rotor copper and hardware

Consumable and general items.

Stamping steel and stamping for stator/rotor.

shaft and rotors

Sub-Assembly components:

Body and shields stator sub assembly.

Final assembly-stator and completion components.

Winding and associated components.

Insulation material.

MANUFACTURING PROCESS:

Manufacturing starts at the sub assembly with core building and pressing.

The strata cores are pressed to the body and the rotor, rotor to the shaft, as per

specifications. The rotor and stator cores are wound with conductor (copper) and

insulated.

The wound rotor and stator are impregnated with varnish to avoid flaring of the conductor

due to centrifugugal forc, while rotating and to strengthen the winding. It is then sent to

final assembly where covers, terminal boxes, thermostats, RTD, BTD, space heaters (for

cold places) etc are positioned as per specifications.

At every stage inspection and testing is carried out and then moved to the next stage after

confirming to the requirements. The machines are then painted to customer requirements,

packed and dispatched.


QUALITY POLICY:

The quality policy of Kirloskar Electric Co. shall be design, manufacture and market at

competitive price products of such quality, which results in, total customer satisfaction

quality reputation and market leadership.

The policy shall be implemented through companywide quality management (CWQM)

programme will emphasis on Customer needs includes delivery after sales service education

and feedback.

SAFETY MEASURES :

More care is taken by the company to secure from hazards and perils from work, for the

company provides safety shoes and uniforms of costumes for getting safe from work which is

having some dangerous character and when housekeeping and personal protective like

helmets, goggles, shields, gloves, belts, ladders, respirators, ear muffs and earplugs are

provided and training sufficiently given to the employees to handle machineries.

SAFETY POLICY:

To prevent accident and subsequent loss of man-days

To improve working condition to avoid accidents.

To comply with safety requirements of the Factories Act.

“Safety is everybody’s job”

Performance appraisal

Employee counseling

Career planning and development

Job rotation

WORKING PROCESS:

The production dept of K.E.C. unit-1 is divided into six different shops. These shops are

inter-connected. The central planning sets the program and then the production starts. In case

of standard products some specifications are mentioned, its numbers are given to each

product for identification.

The last stage is the dispatching of goods when all the products are assembled & they assure

the quality, they are sent to painting & then to the dispatch section.


STORAGE:

Materials at the process stages shall be stored appropriately to prevent damages &

deterioration of quality.

Materials/Products/components are stored in identified locations.

Customer supplied products are stored along with appropriate identification taking adequate

care.


ENGINEERING DEPARTMENT:

INTRODUCTION

Engineering department plays a major role in giving shapes the products i.e. electric motors,

generators, transformers and controllers. It is mainly concerned with designing the product

according to the needs and wants of customers. Highly, technically background employees

will work together to ensure maximum satisfaction to the customer.

This department consists of 75 employees. They also undertake 3 comprehensive reviews of

products before adding new features. This department interacts usually with various

departments to bring effective results to the company. The department outlays designs,

drawing and sketches required by the production department and keep track of recent changes

in the technology thereby diversifying the product produced by the organisation in the

modern era of computation.

FUNCTIONS

Converting customer specification into procurable, manufacturing and evaluating

product specification.

Design the product.

Plan and arrange of raw material, manpower and other facilities required to meet

schedule.

Preparing production realization timing chart for new production development.

Ensuring that production is completed in time.

To reduce wastages.

Challenges in Engineering Department

Coming out with positive result with lots of constraints.

Adapting them to changing market.

More computer oriented applications.


RESEARCH AND DEVELOPMENT:

INTRODUCTION

This department gives a supporting hand for engineering department by analysing the

products with respect to materials requirement, their capabilities, uses and specific functions

involved in the materials and quality specifications.

This department has 6 employees. Research is conducted by research group. After research is

done, product development starts and done by engineering department. Research and

Development is understand for extending the range of the existing products, lowering costs

and process improvements, Indigenisation or alternate sourcing of materials, development of

energy efficient motors or generators with added features.

Benefits derived as a result of R & D efforts:

1. Process improvement resulting in higher production.

2. Quality improvement.

3. Development of in-house skills for manufacture of high precision products.

4. Enhanced design and product capability to achieve customer satisfaction.

5. Cost reduction.

6. Product range extension to reach newer markets.

Future Plan of Action:

1. Up gradation of existing technology.

2. Applied research and value engineering.

3. Extension of range of inverters.

4. Development of new processes.


MAINTENANCE DEPARTMENT


Integration:

Through integration with other modules (for ex: materials management, production, sales and

distribution, personnel management, and controlling) the data is always kept current and

processes that are necessary for plant maintenance and customer service are automatically

triggered in other areas (for ex: a purchase requisition for non-stock material in the material

management/purchasing area).

Responsibility:

To attend breakdown of any machine.

To ensure enough spares are available.

To ensure smooth work flow.

To make sure all instruments are working properly.

Maintenance of the whole building.

To ensure all safety material is good condition.

When there is breakdown in the company the supervisor of that section reports immediately

to the maintenance department. Maintenance department immediately attend to that machine

if the machine is under warranty then maintenance department solves the problem on their

own. While working production supervision finds or receives message from machine

operator, about the possible malfunctioning of machine completely stops. In such situation

production supervisors writes the break down slips. The maintenance supervisor analyses the

solution like breakdown. Technicians identify the exact failure and cause of the problem is

solved and carries out the rectification work. Then to ensure that the identified problem is

solved they check for trail runs of machine is handed over to the production and for

completion of job on the breakdown.

QUALITY ASSURANCE DEPARTMENT


INTRODUCTION:

Quality is the fitness to end use. It is all pervasive. In this modern & competitive world each

& every company is training hard to introduce quality & detect – free products. K.E.C. is one

such industry whose priority is not to be number one in quantity but in quality and reliability.

KEC tries hard to see that the quality of a product is ensured by the total investment of all

workers. There are very skilled & smart employees who actively take part in quality

improvement.

Quality Policy of KEC LTD, UNIT – I :

“Shall be to continually improve the effectiveness of the Quality management system,

conforming to ISO 9001:2008 Standard in design, manufacture, marketing & services at

competitive prices, products of such Quality resulting in Customer Satisfaction, Quality

Reputation & Market Leadership”.

Responsibilities of Quality Assurance Department:

Achieving the quality requirement as per ISO 9001 for products manufactured.

Delegation of duties to the staff along with issue, distribution and control of

documents and data.

Control of data prints & ensuring the same is maintained.

Maintain records of products against identification and traceability.

Carry out inspection/testing of products at predetermined stages.

Ensure usage of only valid calibrated measuring instruments or equipment.

Responsibility for identification, documentation, evaluation & notification to the

concerned dept. about the non conforming product to prevent their inadvertent use.

Reviewing none conforming & implementing appropriate corrective actions.

Identification of appropriate statistical technique.

INSPECTION OF MACHINE:

Before start up, the machine should be tested as detailed below for proper execution and

readiness for operation:-

Are the bolts are tightened at the feet of the machine.


Is the machine is correctly coupled to the driving/driven machine.

Is the machine is correctly connected.

Do the brushes move freely in the boxes of the brush holders?

Is the brush rocker in labelled position?

Do the winding have minimum insulation resistance?

Is the machine closed circuit cooling system in order?

Are the bearings is in good condition and properly.

Is the armature is free to rotate.

Is the fuses and other protective device is in proper condition.

FUNCTIONS OF QUALITY ASSURANCE DEPARTMENT:

Incoming material inspection and testing of products received at stores as per

specified purchase requirement as per documented procedures.

Supplier’s quality rating.

Assisting coordination in disposition of non conforming products.

Preparation and maintaining of quality plans.

Maintaining housekeeping and safety regulation in testing areas.

Conducting routine engineering test on products.

Generation of reports for analysis, review and initiating corrective and preventive

actions.

Ensuring proper identification, inspection status of products.

Customer inspection.


STRUCTURE OF Q/A DEPARTMENT:

TYPES OF TESTS FOR AC MOTORS AND GENERATORS:Sl. No. TESTS FOR MOTOR Sl. No. TESTS FOR GENERATOR

1. Winding Resistance Test 1. Winding Resistance Test

2. Insulation Resistance Test 2. Insulation Resistance Test

3. High Voltage Test 3. High Voltage Test

4. Locked Rotor Test 4. Open Circuit Test

5. Reduced Voltage Running Operation 5. Short Circuit Test

6. No Load Test 6. Regulation Test

7. 120% Over speed Test

8. Vibration Measurement Test

9. Noise Level Test


DEPUTY GENERAL MANAGER

SENIOR MANAGER

SYSTEM MANAGER

TESTERS FOR DC MACHINES

(DIPLOMA HOLDERS)

TESTERS FOR AC MACHINES

WORKERS(ITI HOLDERS)

TESTERS FOR AC MACHINES(DIPLOMA HOLDERS)

WORKERS(ITI HOLDERS)

TYPES OF TESTS FOR DC MOTORS:Sl. No. TESTS Sl. No. TESTS

1. Temperature Rise Test 11. Insulation Resistance Test & HV Test

2. Vibration Measurement Test 12. High Voltage Test

3. Black Band Test 13. Converter Class A Test

4. Efficiency Test 14. Converter Over Speed Test

5. Over Load Test 15. Converter Dynamic Balancing Test

6. No Load Test 16. Converter Short Circuit Test

7. Over speed Test 17. Converter Phase Sequence Test

8. Heat Run Test 18. Routine Test

9. Measurement of Noise Level Test 19. Type Test

10. OCC Test


QUALITY CERTIFICATIONS OF THE INDUSTRY:

KIRLOSKER Is the first Electrical Engineering Company to get ISO 9001 certification in

India. KEC is also the first electrical equipment manufacturing company in India to be

awarded with certificate for providing ‘CE' Mark.

Bureau Veritas Quality International (BVQI) has certified the Quality Management System

of KEC. We are also first in electrical industry to obtain ISO 9001-2000 certification by

BVQI.

The ISO 9001-2000 certificates awarded to:

KEC - Bangalore, Hubli, Mysore, Tumkur.

KEMA' registered quality B.V.Netherlands, notified authority have tested our products with

respect to low voltage directive, EMC (Electromagnetic) directive and MD (Machinery)

directive.

CE' stands for ‘CONFIRMATIVE EUROPEENNE' and conformity to European standards

meeting basic requirements of Safety, Health, and Environment & Protection (SHEC).

KEC is entitled to provide 'CE Marking' for AC motors, AC generators and DC machines.

‘CE' marking allows the product un-registered legal access to the European market.

We are proud of having established an independent laboratory duly certified by NVLAP -

NIST, USA for testing of energy efficient 3 phase Induction motors up to 50 HP.

Kirloskar Electric Test Laboratory (KETL) is first in India and among few in Asia to get

NVLAP Accreditation.


http://www.kirloskar-electric.com/certification.shtml



INTRODUCTION:

Marketing is an ongoing process of planning and executing the marketing mix (Product,

Price, Place, Promotion often referred to as the 4 Ps) for products, services or ideas to create

exchange between individuals and organizations.

Marketing tends to be seen as a creative industry, which includes advertising, distribution,

and selling. It is also concerned with anticipating the customer’s future needs and wants,

which are often discovered through market research.

In marketing the company has divide into different region like north, south, east, west. As the

products are segmented and produced in different verities there is a huge competition

throughout India as well as from other countries.

FUNCTIONS:

Marketing department of KECL receives the general enquiry from customers either in

branch/unit offices, which order enquiry, is discussed with other related departments before

further process viz, design, finance, production, purchase etc. after discussion the marketing

department gives a quotation to the customer. Then a final specification is received from the

customer by the unit making negotiation before receiving purchase order from the customer.

Once the purchase order is received at the office, marketing department will send an order

acceptance to MIS & production department. Then the design department will design the

product process & release a bill of materials & the purchase indent is given to the purchase

department. Then the purchase department contacts the vendors, send purchase order to the

vendors, then vendors supply the raw materials, at the time of receiving the materials an

inspection is carries on by the quality assurance department. After inspection of raw materials

it is supplied to the factory for producing AC/DC motors.

Once the production process is over, test is done & again the QAD carries on inspection (and

also inspection made by the customer himself in certain cases) once payment is made by the

customer the products will be dispatched.


OBJECTIVES AND POLICIES:

To identify the potential business available.

Preparing operating plans-short term/long term.

Diversification plan to expand business.

Monitor market fluctuations and act on time to correct the situation.

Identify the market needs.

MARKETING NETWORK:

North zone : Delhi, Ludhiana, Lucknow, Bhopal, Meerut

East zone : Kolkata, Bhuvaneswar, Jamshedpur, Ranchi, Guwahati

West zone : Mumbai, Pune, Nagpur, Ahmadabad

South zone : Chennai, Coimbatore, Cochin, Hyderabad, Vizag, Bangalore.

SALES OFFICES IN INDIA:Ahmedabad Hyderabad MumbaiBangalore Indore NagpurBhuvaneswar Jaipur NashikChennai Jamshedpur New DelhiCochin Kolkata PatnaCoimbatore Lucknow PuneDurg Ludhiana SuratGuwahati Madurai Vishakapatnam

OVERSEAS SALES OFFICES:

Malaysia

Singapore

UAE

Indonesia

Michingan

Sharjah


SALES PROCESS:

The process of selling the products is shown in the chart below:

Customer enquiry study, analyze and enquiry

Issue enquires to executing agencies

Obtain approval for tender submission

Submit approved offer with draft time schedule as required

Tender opening meeting and preparation of competitive statement

Won the order

Finalization of offer

Contract signing with the customer

Thus product is finally sold to the customer

Receipt of payment

MARKETING FUNCTIONS OF KECL:

The marketing functions being performed in Kirloskar electric ltd division are:

1. Purchasing.

2. Storage.

3. Packing.

4. Labeling.

5. Pricing.

6. Dispatching.


Purchasing:

Company follows the path of scientific purchasing which is to procure materials at the Right

price, Right quality, Right time, Right quantity, Right purpose, and Right contractual terms.

Purchasing is done on forecast it depends on the order received from customers and the

quality of goods required by them.

Storage:

Storage protects goods, provides supply of goods, helps to adjust, demand and supply, shifts

risk and promote orderly marketing.

Packing:

Packing in KIRLOSKAR is done by keeping the following points in view:-

To provide the products until it is used

To provide the consumer convenience

To minimize distribution cost, handling cost, storage cost, transportation cost etc.

Packing also depends on the mode of transportation used to transport the products.

Labeling:

The products of the company are packed in boxes that have the prints of KIRLOSKAR-EDN

on it. That itself acts as label and brand name of its products.

Pricing:

Company is adopting different types of pricing strategy for its products. It is based on the

demand for the products, credit period, prompt payment, manufacturing of products based on

customer’s specification and market condition. The total cost of production is first estimated.

Some time a customer may stipulate a particular specification of product. At that time

the company charges special price for its products.

Company follows “penetration strategy” whenever there is a high competition in the

market.

If the mode of payment is immediate (cash purchases), company shares lower price

and also gives cash discounts.


Dispatching:

This is the last step in marketing where the products manufactured are dispatched to the

concerned customers.

KEC has various ways of marketing:

1. Personal visit:-

Marketing partner makes a personal visit to the customer. Gives the detailed

information about the company and its facilities. The marketing manager is

responsible for convincing and getting order from the company.

2. Industrial display:-

Whenever there is a trade fair which happens at once every year, KEC displays its

products and facilities. They have stall set where interested visitors can get all details.

3. E-Business:-

E-Business is a boom these days. KEC has its own site. This www.kriloskar-

electric.com website is registered with Google search engine.

4. Business magazines and business newspaper.

5. Direct channel

6. Pre-tendering and after sales services.

7. Participate in trade exhibition with and outside.

EXPORTS:

Mainly KEC products are exported to USA, Europe, Canada, Hong Kong, Australia, and

China, Singapore, South Africa, Malaysia, Pakistan, Japan and Bangladesh.


VALUED CUSTOMERS OF THE COMPANY:

TATA Steal

Jindal ltd.

Coal India Ltd.

Nuclear Power Corp. Of India Ltd.

Engineers India Ltd.

ONGC

Indian Oil

Bharat Petroleum Ltd.

Cement Industries (ACC, Ambuja, JK, Birla, Prism, Mangalam etc.)

Mecon Ltd. etc.

COMPETITORS:

ABB

BHARATH BIJLEE

Crompton Greave

EMCO

EASUN REYRL

Havels India

HONDA SIEL

HBL Power

NUMERIC POWER

Techno Electric


INTRODUCTION:

HRD functions is to satisfy the organizational needs, Selecting right persons for the right job

and to manage people not only workers but also includes white collared professionals. Thus,

the main objective is to maintain cordial relationship, by providing maximum welfare &

thereby optimizing the personal contribution for the effective functioning of the undertaking.

KECL recognizes its employees as the most important asset for its continued growth. HRM

providing the environment and opportunity for every individual to raise their highest

potential. Identify and achieve his/her personal goal within the frame work of organizational,

societal, and national objectives. It shall endeavor to uphold the dignity of individuals by

making them feel proud partners through the following measures…

Ensure a high degree of selectivity in recruitment of employees, trainees explicitly on

the criteria of their knowledge, skills, and attitudes.

Impart such induction, circulation and training so as to match the individual to the

task and inculcate a high sense of org.nal loyalty.

Provides facilities for all round growth of the individual by training in and outside the

organization, reorientation, lateral mobility and self development through self

motivation.

Build team and foster team as the primary instrument in all activities.

Recognize worthy contribution of the employees in time and appropriately so as to

maintain a high level of employee motivation and morale .Appraisal and promotion

shall be ethical and impartial.

Contribute towards the health and welfare of the employees.

Implement equitable, scientific and objective system of rewards, incentives and

control.

Groom every individual to realize his potential in all facets while contributing to

attain higher organizational and personal goals.


ORGANISATIONAL CHART OF HUMAN RESOURCE DEPARTMENT:

UNIT CHIEF

GM (P & IR)


COMPANY

GUARDS

SR. MANAGER

(Training &

Development

Centre)

ASST. MANAGER

(Personnel &

Administration

functions)

CONSULTANT

(AMBULANCE

ADMINISTRATION)CHIEF SECURITY

OFFICER

(Security, vigilance,

telephone exchange,

reception &

gardening)

ASST. MANAGER

(CORP. SAFETY)

Safety &

Environmental

Management

MANAGER

(P & IR) &

FACTORY

CIVIL

ENGINEER

ON

CONTRACT

APPRENTICE

TRAINING

MANAGER (2)

WELFARE OFFICERS (2)

CANTEEN &

TRANSPORT

TIME OFFICER

TIME OFFICE

ADMINISTRATION

JUNIOR

SECURITY

OFFICER

TOTAL NUMBER OF EMPLOYEES:

Daily rated employees : 376

Monthly rated employees : 160

Outsourcing workers : 200 – 250

Monthly Rated Employees (MRE):

They are under the management category; they get salary on monthly basis. Yearly wise they

get increment based on performance and experience fixed by management in KEC.

There are 160 monthly rated employees in Unit-1 in Bangalore.

MRE will work daily in one shift i.e General shifts: 9.15 am to 5.15 pm

Daily Rated Employees (DRE):

Workmen category paid on daily wages basis for 26 days, exclusive of Sundays in the month

and also based on the attendance of worker.

In KEC – Unit-1, there are 376 daily rated employees. DRE will work daily in 3 shifts-

First shift : 6.30 am to 2.30 pm

Second shift : 2.30 pm to 10.30 pm

Night shift : 10.30 pm to 6.30 am

Production process will be going on 24 hours a day. Weekly once shifts will be changed to all

the employees. In one shift 120-130 workers are working in KEC shop floor plant.

Outsourcing Workers:

They are under contract category, they get daily wages.

In this Unit, 200 – 250 workers are there. They are grouped by--

“Sneha” for gardening and

“Aishwarya” for housekeeping.


RECRUITMENT PROCESS:

Vacancy from each department is analyzed and call is made for employment through the

internet. The processes of recruitment are as follows:

1. Interim written test.

2. Aptitude test.

3. General round.

4. HR interview.

5. Analysis of technical qualification of the candidate and previous experience.

6. Analysis of Expected Salary.

7. Skill testing (communication skill, working skill etc,) and the HR Manager will fix

the salary and put the candidate under training.

TRAINING AND DEVELOPMENT (T&D):

In organization development, the related field of T&D deals with the design and improve

performance, skills, or knowledge within organizations. A fully fledged training centre

provides training to senior executives, managers, supervisors and operators in the areas of

management, marketing, technical, information technology, and quality in KEC.

In KECL there are 4 types of training:

1. Trade Apprentice Training: This training is mainly for selected ITI candidates for the

job. This training is related to production unit such as electrician, mechanist, fitter, and

turner.

2. Graduate Apprentice Training: This training is mainly for diploma and B.E.Graduates

where the new comer can be exposed to the working environment.

3. Employee Training; This training is mainly for the workers and other employees, which

is generally used to upgrade their abilities according the external environment.

4. Other Trainees: This training is mainly for the non apprentice and other commercial

trainees, which is used for external studies about the organization.


INDUCTION:

At KECL new recruits shall be imparted such induction, orientation, training, and

development so as to match the individual to the task and inculcate a high sense of

organizational loyalty.

The Human Resource department and the concerned head of the parent department shall

prepare a well structured induction programme to recruit the people.

PLACEMENT:

The new entrant shall be placed under the best manager in the organization. This implies that

the manager being a role model, shall himself is a top performer, have the necessary skills in

inculcating the right values and attitudes in young people.

The new employee shall be placed under senior executive who will act as his mentor. This

mentorship process will start at the probation stage and shall continue for next 5 years.

PERFORMANCE APPRAISAL:

It is a method by which the job performance of an employee is evaluated (generally in terms

of quality, quantity, time and cost).

Appraisal consists of four stages viz… Self – appraisal, Performance assessment,

Development plan, Final evaluation and grading. Generally, the aims of a scheme are:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational rewards.

For personal decisions: salary increases, promotions, Disciplinary actions, etc

Provide the opportunity for organizational diagnosis and development.

Facilitate communication between employee and administrator.


AWARDS:

Awards are instituted by the company in the recognition of outstanding work performance,

useful suggestions for the improvements, and contributions to technical/academic knowledge.

PROMOTIONS:

Company adopts an Accelerated Promotion Schemes for fast trackers in recognition of

employee’s performance. Systematic job rotation is carried out to nurture the all round

growth of the individual through lateral mobility. Job rotation is based on the individual’s

experience, personality, attitude, education and performance, in addition to job related skills

and knowledge.

COUNSELING:Counseling services are provided to enhance employee’s competence and job satisfaction, to

prepare them for future responsibilities, to establish better working relationships and to cope

up with personal problems. Counseling is carried out by HRD and professional counselors.

CAREER PLANNING:

This is to ensure that people of the right calibre are available to meet the present and future

requirements of organization. The process identifies the necessity inputs aim at imparting

technical/managerial knowledge, inter-personal skills and attitudes that will helping dealing

with the external and internal environments. Other factors to develop potential include

activities such as exposure to new functional projects.


BENEFITS TO EMPLOYEES:

Dearness Allowance (D.A):

D.A payable to the workmen covered by this settlement has been fixed at Rs.4072 per month

with reference to All India Consumer Price Index for Bangalore city at 547 points published

by Labour Bureau.

House rent allowance:The management agrees to pay every workmen covered under the settlement, House Rent

Allowance of Rs.1306 per month.

Washing Allowance:The management pay the washing Allowance of RS.150 per month to the workman who

attend the Factory on all the working days in a month.

Education Allowance:Rs.200 per month to all workmen.

Attendance Bonus:A workman will be eligible for Attendance Bonus of Rs.40 per calendar month, if he puts in

100% attendance during such month.

Shift Allowance:Shift Allowance pay to the workmen working in the second shift commencing from 2:30 pm

and thereafter at the rate of Rs.10 per day per shift per workman provided they actually work

till the end of that shift and for those who work in the third shift commencing from 10:30 pm

and thereafter, the shifts allowance will be at the rate of Rs.16 per day per shift per workman.

Festival Advance:The management agrees to grant to every workman, festival Advance of Rs.2200 in a

financial year of the company.


Leave Travel Assistance:A workman will earn the Leave Travel Assistance by working at least 240 days in a year.

Uniform and shoes:The management gives every year, 2.5 meters pant cloth and 4 meters of terry cot shirt cloth

of good quality. And pay a sum of Rs.475 per year, towards stitching charger of 2 pairs of

uniform. And also provide one pair of industrial safety shoes with 2 pairs of socks. Jerkin or

sweater provided in every 2 years to all workmen.

Leave Facilities:Providing Eleven National and Festival Holidays with wages.

Sick Leave for workmen not covered under ESI Scheme:

Medical Reimbursement Scheme for workmen not covered under the ESI Scheme: Medical expenses reimbursable under the scheme will not exceed Rs. 3200 per year for

workman and his family as a whole.

Canteen:An amount of Rs.65 per month shall be deducted from each workman towards supply of two

coffee or tea and one lunch or dinner per day.

Grievance Procedure:The clause XXVII of the memorandum of settlement which contains (A) Grievance

procedure, (B) Facilities to Employee office Bearers and committee members of the

Association and (C) General Provisions, will continue to operate.


INTRODUCTION:

Finance Management provides a framework for financial decision making. It is concerned

with efficient & wise allocation of funds to various uses. Kirloskar Electric Company Ltd

situated at Govenhalli has a corporate finance department at Malleshwaram, which is

responsible for all the major financial decisions.

CORPORATE FINANCE DEPARTMENT:

The corporate finance department controls the financial activities of all 5 units of Kirloskar

Electric Company (KEC). It is responsible for taking all the important financial decisions &

also prepares the annual operating plans & the long range plans.

The monthly operating plans are divided into weekly & daily plans. The unit has a fixed

target on daily basis derived from operating plan prepared on daily basis & circulated to the

entire concerned corporate officer.

All units are functionally accountable to the corporate department & is monitored & revived

quarterly. Some of the decisions taken up in this department are,

Dividend policy

Capital Expenditure

Diversification

Collaboration etc.

The sap R/3 is an integrated system of materials, production, sales and financial accounting.

There were some mistakes that occurred mainly in the areas of production and materials

accounting. Valuation of inventories created a mistake and upload of balance during its

implementation most of which has been identified and rectified.

All the final accounts have been prepared incompliance with all the mandatory requirements

specified under section 211 of the company’s act of 1956. The company has not been regular


in depositing statutory dues such as provident fund, employees state insurance, income tax,

sales tax, customs duty, excise duty, etc. with the appropriate authorities.

FUNCTIONS OF THE DEPARTMENT

Maintenance of payroll records.

Maintenance of sales and purchase books.

Maintenance of cash and bank records.

Updating the general and subsidiary ledgers.

Preparing the management information report.

Passing bills.

Invoicing/costing.

Taxations.

RESPONSIBILITIES OF THE DEPARTMENT

Responsible for sales tax, income tax return & periodical returns to the bank.

Also responsible for preparation of profit and loss account and balance sheet.

It is authorized-signatory for payment of vouchers, receipt and also looks after the

overall administration of accounts and review of the work of the personnel.

Responsible for financial-accounting system and verification and scrutinizing the

account in general ledger and preparation of Profit and Loss account as well as

Balance Sheet.

LIST OF STOCK EXCHANGES:

The shares of the company are traded in-

Bangalore Stock Exchange Ltd

Madras Stock Exchange Ltd

BOMBAY Stock Exchange Ltd.

The company had taken loan from various banks. Those banks were as follows:


State Bank of India, State Bank of Mysore, SB of Travancore, Bank of India,

Bank of Baroda, Axis Bank, ICICI & Bank of Commerce, Koulalumpur.

FLOW CHART OF FINANCE DEPARTMENT:

(3 persons)

(6 persons)

(2 persons)


Unit Chief

HRD MMD Finance dept Marketing dept Quality assurance

Deputy General Manager

Deputy Manager

Accounts Officers

Junior Officers

Union Category people

SIGNIFICANT ACCOUNTING POLICIES:

Accounting Treatment:

The company’s financial statements are prepared as per the guidelines of Accounting

Standers under Indian GAAP.

Accounting System:

The company follows the accrual system of accounting in respect of all of expenditure and

income.

The company has complied with Accounting Standard - 2 in respect of valuation

of R.M stores and components and in respect of work in progress and finished goods.

The SAP R3 is an integrated system for materials, production, seals and financial accounting.

Inventories:

Raw Materials stores, spare parts and components are valued on FIFO / Weighted Avg. basis.

Work In Progress is valued at works cost or net realizable value whichever is lower.

Finished goods are valued at works cost or net realizable value whichever is lower.

Depreciation:

a) Depreciation is charged on written down value of assets at the rates specified in

Schedule XIV to the companies Act, 1956 or Income Tax Act 1961, WE higher on

assets as on 31/3/1994.

b) After 1/4/1994 depreciation on straight line basis at the rates on Schedule XIV to

companies Act has been charged, except otherwise stated.

c) Depreciation on furniture and fixtures above Rs. 5000 charged @ 33.33% on straight

line method. Below 5000 are fully depreciation in year of addition.

d) Depreciation on assets taken on lease is charged over the primary lease period.

e) Depreciation on software is provided @ 33.33% p.a.

f) Depreciation on technical know-how are written over a period of 6 years.


g) Finance lease arrangements relate to Plant and Machinery. The lease period is for 5

years with interest rates ranging from 13% to 14% p.a.

RISK MANAGEMENT:

The company has said down procedures to inform Board Members about the risk assessment

and minimization procedures. There are periodically reviewed and to ensure that executive

management controls risk through means of a properly defined framework.

CREDIT POLICY OF THE COMPANY:

The credit policy of Kirloskar Electricals was 90 days, 30 days and also 40 days likewise the

company will provide credit to its customers.

31ST MARCH 2009:

Company performance – during the year, company has archived a turnover (gross) of Rs.

9.63 billion (previous year Rs.9.46) the operations have resulted in a net profit of Rs. 302.12

million (previous year Rs. 620.14 million)

Equity Dividend- Directors regret their inability to declare any equity dividend for the year

under report. The company has not transferred any amount to it is.

Equity Dividend:

In order to conserve for resources for company’s growth, the company has not transferred

any amount to its General Reserve.

Preference Dividend:

Payment of dividend of 7% on the preference shares issued to IDBI Bank ltd on 1800000

preference shares of Rs 100 each from 1.10.2001 to 30.4.2003 & 1200000 preference shares

of Rs 100 each from 1.5.2003 to 31.3.2004.


AUDITED FINANCIAL RESULTS FOR THE YEAR

ENDED MARCH 31, 2011

Amount (Rs. In Lacks)Sl. No Particulars 31/3/2011 31/3/20111 a Gross Sales 89,522 90,557 Less : Excise Duty 7,134 6,484

Net Sales/ Income from operations 82,388 84,073 B Other Operating Income - -2 Expenditure A (Increase)/decrease in stock in trade (1,162) (969) B Consumption of raw materials 62,929 61,115 C Purchase of traded goods 1,542 1,366 D Employee cost 7,598 7,556 E Depreciation 1,619 1,579 F Other expenditure 7,434 7,625 G Total 79,960 78,2723 Profit from Operations before other income, Interest &

exceptional items (1 - 2g)2,428 5,801

4 Other Income 361 1,1955 Profit before interest and exceptional items ( 3+4 ) 2,789 6,9966 Interest 2,576 2,2577 Profit after interest but before exceptional items ( 5-6 ) 213 4,7398 Exceptional Items (Net) - -9 Profit from ordinary activities before tax ( 7- 8) 213 4,73910 a Provision for Current Tax 2 1,050 B Provision for deferred Tax - -11 Net profit from ordinary activities after tax (9-10) 211 3,68912 Extraordinary Item (net of tax expense) - 7013 Net profit for the period (11+12) 211 3,75914 Paid up Equity Share Capital (face value of Rs. 10/-) 5,052 5,05215 Reserves Excluding Revaluation Reserves (As per

Balance Sheet of Previous Accounting Year)12,658 12,448

16 Earnings Per Share (EPS) A Basic & Diluted EPS before Extra ordinary items (not

annualized)0.18 6.95

B Basic & Diluted EPS after Extra ordinary items (not annualized)

0.18 7.09

17 Aggregate of Non-Promoters Shareholding


Number of Shares 25,658,739 25,685,164Percentage of holding 50.79% 50.84%

18 Promoters and Promoter group shareholding A Pledged/Encumbered

-Number of Shares 2,500,000 5,329,785 -Percentage of Shares(as a % of the total share holding of promoter and promoter group)

10.06% 21.46%

-Percentage of Shares (as a % of the total share capital of the company)

4.95% 10.55%

B Non-Encumbered -Number of Shares 22,362,628 19,506,418 -Percentage of Shares(as a % of the total share holding of promoter and promoter group)

89.94% 78.54%

-Percentage of Shares (as a % of the total share capital of the company)

44.26% 38.61%

STATEMENT OF ASSETS & LIABLITIES as on March 31, 2011

Amount (Rs. In Lacks)Sl. No. Particulars March 31, 2011 March 31, 2010

Sources of Funds1 Share Holders Funds1 a Share Capital 5,826 6,5991 b Reserves & Surplus 13,139 12,929

2 Loan Funds 15,150 14,022

Total 34,115 33,550

Application of Funds1 Fixed Assets (Net) 16,681 17,5872 Investments 10,856 8,579

3 Current Assets Loans and Advances3 a Inventories 11,617 9,1223 b Sundry Debtors 19,604 20,0053 c Cash & Bank 5,569 4,4493 d Loans & Advances 4,827 3,422

4 Less: Current Assets and Provisions4 a Liabilities 32,606 26,1444 b Provisions 2,433 3,470


Total 34,115 33,550

THE CONSOLIDATED KEY FIGURES OF THE COMPANY

FOR THE YEAR ENDED MARCH 31, 2011

Amount (Rs. In Lacks)Sl. No. Particulars March 31, 2011 March 31, 2010

Gross Sales 115,843 124,769Less : Excise Duty 7,134 6,484Net Sales 108,709 118,285

Net Profit (Before Extra-ordinary items & Taxation)

1,090 6,331

Provision for taxation 357 1,145

Profit After Tax 733 5,186Less: Minority Interest 46 63Add/(Less) Share of (Loss)/Profit from associates

4 (27)

Profit attributable to shareholders of the Company

691 5,096

EPS Basic & Diluted (Not Annualized) Rs. Per Share before extraordinary item

1.13 9.59

EPS Basic & Diluted (Not Annualized) Rs. Per Share after extraordinary item

0.84 9.73


STRENGTHS:

Strength of KEC is its Brand Name.

Streamlining, redefining and recreating of process, design and testing parameters to Six

Sigma and other stringent quality measures.

KSL is one of the rare units in the world which produces the high voltage AC/DC motors

and generators.

The company has received an ISO certificate for producing quality products.

The company has spread its branches to other parts of the world.

The company has a well equipped quality control department for inspecting the quality of

incoming products and final products.

The company is one of the old company which manufactures electric products to

industries and has built a good reputation.

The company provides all the necessary facilities for the welfare of their employees.

Company guarantees job security to all its employees this makes them to be more

committed & loyal.

The company has a very stable management that forms strong foundations of the company.


WEAKNESS:

Under utilization of resources because of overstaffing.

There is a less coordination between different departments.

Most of the employees are aged persons which might reduce the productivity in future.

The company does not have any promotional activity.

OPPORTUNITY:

The company has an opportunity to expand its production units due to more demand for

its products.

The company has got better tool for better planning and decision making.

The company can establish more branches across the globe.

There is a growing demand for motors and generators in other developing countries.

THREATS:

Workers absenteeism is very high since most of the workers are old.

Cost of production is high.

Company faces competition from not only large units but also from smaller units because

of concession duties tax deduction available to them.

Company faces competition from companies like Crompton Parikson, Crompton greaves,

Siemens, Philips Electricals.


PROBLEMS IN MANUFACTURING DEPARTMENT:

Manufacturing department has various sections but there is no “Non - Stop” production

wheel in each sections because of the manufacturing of products are depending upon the

orders of the customers. If the orders is less the working activities in the department is also

less. It also caused to under utilization of raw materials.

The period for manufacturing the products are depends upon the range of products and

customer’s needs and specifications. Therefore cannot able to estimate the period for

manufacturing and cost of the products. Some products may takes up to 1 to 1.5 years also. In

order to this the cost of production is also high.

The most of the employees in manufacturing department are old aged therefore the working

speed is very less.

SUGGESTIONS:

The cost of the production has to minimize by producing more number of products.

The company has to concentrate on advertising because it may increase the orders and it ensures non - stop working in production department.

Production schedule should be fully followed so that the performance of work can be increased and slowness of work can be decreased, so as to achieve the company’s goals.

The department should plan for proper utilization of raw - materials.

Also it has to concentrate on R&D for face the competition by producing new and updated products & for adopting upgraded machines in manufacturing.

The department has to minimize the wastages.


FINDINGS:

Kirloskar products are segmented in various ranges so competitors are high.

Kirloskar is being showing consistent growth prospects.

Kirloskar is managing its Human Resources and marketing very effectively by

conducting various types of training and others session.

Kirloskar has a motivated work force.

It is very consistent in its operations. It has achieved a great feet of reaching the targets

for record of 60 years continuously from 1946 to 2008.

Products in Kirloskar are tailor made i.e. they are produced as and when demanded by the

customers.

Kirloskar is establishing its marketing segment according to demand of the products in

different zones.

Advertisement costs are too less because they manufacture the products based on the

orders.

Kirloskar electric company has ISO, KEMA, CE & NVLAP certifications.

The ready acceptance of Kirloskar Electric products in USA, Europe, Canada, Hong

Kong, Australia, China, Singapore, South Africa, Malaysia, Pakistan, Bangladesh along

with the hard to earn certification by world's leading companies.


SUGGESTIONS:

Kirloskar needs technological upgrading since in some machines is old Kirloskar needs

young upgraded work force than older force so it needs to replace them gradually as time

permits.

Kirloskar has to concentrate more on research and development.

Kirloskar has to build mutual trust among the employees.

CONCLUSION:

Since it is one of the oldest company having the history of about 64 years. It has a very good

reputation in the market. It was the first company to produce AC motors and DC motors. It

has the monopoly till 1980‘s in the production of DC motors.

Kirloskar is a multi locational company as it is located in various parts of the country. The

products of the kirloskar have been marketed to various countries like Malaysia, Singapore

and Dubai. The strategy implied by the company is premium established proven production

from 1960s. Generally the strategy is dependent on Quality and Service.


BIBILOGRAPHY:


Books:

Sl. No. Books of Reference Author Edition

1. Marketing Management Bholonath Dutta 2010

2. Financial Management Dr. Pradeep kumar Sinha 2010

3. Human Resource Management

VSP Rao2010

4. Production And Oparations Management

Upendra Kachru2010

Others:

1. Reports from Kirloskar Electric Company ltd.

2. Datas collected from various departments of Kirloskar - Electrics

3. Informations collected from managers of kirloskar–electrics.

4. www.kirloskarelectric.com


Final Internship Kecl

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