Final Project for Submisiion

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CHAPTER 1

“INTRODUCTION TO

SMALL SCALE INDUSTRIES”

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INTRODUCTION:

The growth of Small Scale Industries in our country has provided

opportunities for self employment to educated youth Small Scale Industries

are regarded as a power tool for balanced regional economic development. On

the basis of the recommendations of the Central Small Scale Industries

Advisory Board, the state level organizations have been set up in all states to

assist the Small Scale Industries with regard to for distribution of various

industrial raw materials by procuring the same from the main producers

against the allocation made by ministry of Steel, Coal etc., establishment of

industrial estates etc. Karnataka State Small Scale Industries Development

Corporation Limited is one such Organization established on29th April 1960

under the Companies Act 1956.

Industries play an important role in the economic development of any

nation. Without industries, economic development is impossible. Again, in a

backward & developing economy like India, industries are indispensable. That

is why; Dr. M. Visvesvarayya remarked “Industrialize or Perish”.

Development of industries is not only indispensable for India, but also

there is good scope for the development of industries in our country. India has

many favorable factors for the development of industries.

Small-Scale Industries, started in rural areas, can provide alternative

employment to agricultural labour & relieve the pressure on the agricultural

land. They can also provide work to the farm workers during the non-

agricultural season. & also Small-Scale Industries offer scope for the

development of the hidden talents of people.

Since Small-Scale Industries form an important component of our

Industrial Set up was decided to concentrate on the Small-Scale Industrial

sector in this study.

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CHAPTER 2

“INDUSTRY PROFILE”

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HISTORY OF THE CORPORATION

KSSIDC (then Mysore Small Industries Corporation) is rendering

services to the small sector in the State for more than 40 years. It is both

befitting and appropriate to look back over the years and trace some of the

important events that took place during the period. With a moderate beginning

by occupying a small rented building in the outskirts of Bangalore, the

Corporation moved to its own building in the Rajajinagar, Industrial Estate.

Until around 1960, the State Government’s efforts to encourage the

development of small-scale industries were being pursued by the Department

of Industries and Commerce as a part of the Department’s overall strategy for

a comprehensive industrial development. From 1960, MSIC, then KSSIDC,

took over the activities relating to the management and setting up of industrial

estates and distribution of raw materials and started to give a new orientation

to this aspect of development. The Corporation started with an initial share

capital of Rs.10lakhs, which were gradually stepped up. The State

Government’s contribution to the equity of the Corporation during the first 10

years was Rs.20lakhs. The paid up equity capital of the Company for the year

ended 31st March 2004 was Rs.2466.66 Lakhs.

THE CRITERION FOR SMALL UNITS

Criterion for small units: Investments in fixed assets in plant &

Machinery has been criterion to determine the scale of the industrial sector of

unit. It is pertinent that investment in other assets such as Administration

Building, Lands & other fixed assets is not taken in to account. The traditional

measurement of size by the number of employees is not adopted.

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CLASSIFICATION OF INDUSTRIES:

� Tiny Industry��

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� Small Scale Industry��

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� Medium & Large Scale Industry: An industrial unit which is not

classified as Tiny/Small Scale/Ancillary Industry shall be classified as

Medium/ Large Scale Industry.

ESTABLISHMENT AND MANAGEMENT OF INDUSTRIAL

ESTATES

The programme of establishment of industrial estates, which has been

carried out by the State Government involved in construction of industrial

sheds of various dimensions and providing them with essential amenities such

as roads, water supply, sewerage line and electricity. The maintenance and

upkeep of the sheds also became a part of the responsibility of the

Corporation. Besides constructing and letting out the industrial sheds,

developed plots were also offered to the entrepreneurs to put up their own

factory sheds. The company also established exclusive and prominent

ancillary industrial estates in the vicinities of large and medium scale industry

to cater to their services to public sectors like BEL, ITI, HAL, NGEF, BHEL,

BEML, VISL and Mysore Lamps.

The Company has also established an exclusive Industrial Estate

under Dr. B.R.Ambedkar Birth Centenary Programme at Jigani Bangalore

District where 100 sheds have been constructed and 86 plots have been

formed with all infrastructures exclusively for SC & ST entrepreneurs. The

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Allottees of these sheds are required to pay only 40% of its cost. The company

under VISHWA SHEDS SCHEME constructed 800 sheds all over the state for

the use of tiny units.

MARKETING ASSISTANCE TO SSI UNITS:

The Company with the objective of creating Market to SSI product

formulated a Sister Concern called KSIMC (Karnataka State Industrial

Marketing Corporation) with an investment of 35 Lakhs. Till date the

Company fared well in catering the needs of SSI units to market their

products. The Company with a view to strengthen the marketing of the SSI

units participated in the tenders floated by Government Under takings and

Other Public Sector undertaking on behalf of SSI Units.

POWERS AND DUTIES OF OFFICERS AND EMPLOYEES:

KSSIDC being a company, the highest authority in the company is its

Board of Directors and being a Government company all the directors are

nominated by Govt. of Karnataka. The Board of Directors constitutes the

Chairman, Managing Director, and other Directors are nominated by the

Government from time to time.

Powers of the Board:

The Board of the company exercises all the powers that the Board of a

company exercises subject to the restrictions in the Articles of Association

which lays down that certain powers is to be exercised only with the approval

of Government. There is also a clause in the Articles of Association that

Govt. will have the power to give directions to the Board. The main

restriction in the power of the Board is that all capital expenditure above Rs.50

lacks is subject to approval of Govt.

Powers of the Managing Director:

The decisions taken by the Board and the Committees of the Board are

implemented by the Managing Director who has the powers of management of

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the unit and looks after the routine day-to-day issues and other administrative

matters.

Powers of Officers:

The Board has delegated routine restrictive administrative powers to the

departmental heads for day-to-day affairs of the functional areas. The officers

in the cadre of General Managers, Chief Managers, Superintendent Engineer,

Company Secretary, Deputy. Chief Managers exercise the same. However,

the overall administrative control of the corporation is vested with the

Managing Director.

Turning small dreams in to big successes KSSIDC

The perfect business climate

Karnataka one of the India’s top five industrialized states, has always

been in the forefront of industrialization. The drive for industrialization started

as early as in the first decades of 20th century under the visionary leadership of

Sir Mirza Ismail and Sir M. Visveswaraya the legendary Dewans of the

erstwhile Mysore State.

Today, Karnataka is one of the most preferred destinations for global

investments in high technology sectors like IT and Biotech, as well as in the

old economy industries like automobiles, steel, cement, garments, agro food

processing, etc.

Karnataka’s strength lies in its strong technological base, highly skilled

human resources, enlightened government policies and investor-friendly

business environment.

KSSIDC

A true friend of the small and medium entrepreneur KSSIDC has been

established to give a helping hand to the small and medium entrepreneurs of

the state to take the chant of industrialization to the grass root level. If you are

a small or medium entrepreneur with a viable business model, KSSIDC will

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help you all the way right from providing land and industrial sheds, to

assisting with managerial and technical support, to sourcing of raw materials.

KSSIDC’s Services

� Establishment of Industrial Estates

� Construction of Industrial Sheds

� Development of Plots

� Engineering services for construction

� Sourcing of raw materials

� Management guidance to SSIs

� Business Centre’s

So far, KSSIDC has established 158 industrial estates in various parts of

the state& constructed 5600 Sheds & developed & 3615 Industrial Plots of

various dimensions in these industrial estates that cover an area of over 2500

acres. All these industrial estates are fully developed with all necessary

infrastructures like roads, electricity, water, telecommunications, drainage etc.

KSSIDC MANAGEMENT

The KSSIDC is managed by a team of 11 Directors on the Board

including one Chairman and the Managing Director. All these Directors on the

Board are appointed by Government only.

STRUCTURE OF THE COMPANY

The Company apart from Board of Directors and Managing Director

General Manager, Chief Managers including a Superintendent Engineer, who

constitute the core of the service management. The Company, apart from its

Head Office at Bangalore has Three Zonal Offices of which, one is situated at

Bangalore, another at Hubli and Third one at Mysore. The Company has

Eleven Division Offices headed by Deputy Chief Managers and 27 Raw

material Depots spread throughout the State of Karnataka. The total staff

strength of the company is 363.

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The company has computerized most of its activities with a view to keep

up-dated information in all the spheres of small industries development. The

computer is being used mainly for processing pay rolls, financial accounts,

raw-material inventory accounting, and preparation of estimate, tender and

also to process the management information system to aid the management on

the day-to-day administration. The company is also making efforts for

simplifying the procedures and to de-centralize the powers so as to ensure that

the decisions are taken even at the field level.

BOARD STRUCTURE

State Government nominates all Directors.

Total numbers of Directors are eleven.

Official Directors : Nine Directors

Non-Official Directors : Two Directors

Quorum : Four Directors

Sl Name Sri/Smt Designation & Office

Address of Director

Director

Since

1 D.C.Gowrishankar Chairman KSSIDC Ltd.

Bangalore

30-09-2008

2 P.Ganeshan, I.A.S Managing Director

KSSIDC Ltd.

13-02-2009

3 B.S.Ramprasad, I.A.S Addl.Secretary to Govt.

C&I Department

31-07-2008

4 Dr.Vishal. R, I.A.S Deputy Secretary to

Govt. Finance

Department

31-05-2008

5 Dr.Rajkumar Khatri,

I.A.S,

Secretary to Govt. C & I

Department Bangalore

31-05-2006

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MCKINSEY 7-S MODEL OF ORGANIZATION STUDY:

The 7-S-Model is better known as McKinsey 7-S. This is because the two

persons who developed this model, Tom Peters and Robert Waterman, have

been consultants at McKinsey & Co at that time. Thy published their 7-S-

Model in their article “Structure Is Not Organization” (1980) and in their

books “The Art of Japanese Management” (1981) and “In Search of

Excellence” (1982). The model starts on the premise that an organization is

not just Structure, but consists of seven elements:

Those seven elements are distinguished in so called hard S’s and soft S’s. The

hard elements (green circles) are feasible and easy to identify. They can be

found in strategy statements, corporate plans, organizational charts and other

documentations.

6 Kaushik Mukherjee,

I.A.S

Managing Director,

KSFC

31-07-2008

7 T.Sham Bhat, I.A.S Chief Executive Officer

& Executive Member ,

KIADB

16-07-2008

8 N.L.Peshve Chief Engineer (C&B),

Public Works

Department.

19-04-2008

9 K.L.Rao Director, MSME

Development Institute

31-05-2008

10 H.V.S.Krishna President, Laghu Udyog

Bharthi, Karnataka

12-03-2007

11 Aravinda N Burji President KASSIA 18-08-2008

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The four soft S’s however, are hardly feasible. They are difficult to

describe since capabilities, values and elements of corporate culture are

continuously developing and changing. They are highly determined by the

people at work in the organization. Therefore it is much more difficult to plan

or to influence the characteristics of the soft elements. Although the soft

factors are below the surface, they can have a great impact of the hard

Structures, Strategies and Systems of the organization.

McKinsey 7S model involves seven interdependent factors which are

categorized as either "hard" or "soft" element

"Hard" elements are easier to define or identify and management can directly

influence them: These are strategy statements; organization charts and

reporting lines; and formal processes and IT systems.

"Soft" elements, on the other hand, can be more difficult to describe, and

are less tangible and more influenced by culture. However, these soft elements

are as important as the hard elements if the organization is going to be

successful. The way the model is presented in Figure 1 below depicts the

interdependency of the elements and indicates how a change in one affects all

the others.

Hard Elements Soft Elements

Strategy

Structure

Systems

Shared Values

Skills

Style

Staff

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Let's look at each of the elements specifically:

� Strategy: the plan devised to maintain and build competitive advantage

over the competition.

� Structure: the way the organization is structured and who reports to

whom.

� Systems: the daily activities and procedures that staff members engage in

to get the job done.

� Shared Values: called "super ordinate goals" when the model was first

developed, these are the core values of the company that are evidenced in

the corporate culture and the general work ethic.

� Style: the style of leadership adopted.

� Staff: the employees and their general capabilities.

� Skills: the actual skills and competencies of the employees working for

the company.

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McKinsey 7S model with respect to KSSIDC

STRATEGY:

A strategy is the determination of the basic long term goals and objective

of an enterprise and the adoption of the course of action and allocation of

resources necessary for carrying out these goals.

The main strategy of KSSIDC is aimed to provide sustainable advantage to

the small-scale industries through their best service. KSSIDC has a customer

oriented approach that it could encourage small entrepreneurs entering the

field of business.

STRUCTURE:

The Company apart from Board of Directors and Managing Director

General Manager, Chief Managers including a Superintendent Engineer, who

constitute the core of the service management. The Company, apart from its

Head Office at Bangalore has Three Zonal Offices of which, one is situated at

Bangalore, another at Hubli and Third one at Mysore. The Company has

Eleven Division Offices headed by Deputy Chief Managers and 27 Raw

material Depots spread throughout the State of Karnataka. The total staff

strength of the company is 363.

SYSTEM:

Imparting training to the staff on various subjects organized through

KSPBE & other organization. Also organizing computer training programme

to needy staff based on request from the concerned officers of the KSSIDC

with the assistance of the Corporation department. Providing periodical

statistical information to the Government & to other inter-connected

departments.

SHARED VALUES:

The corporation’s principle objective is the promotion and development

of Small Scale Industries in the state. Construction and utilization of

infrastructure especially in backward areas procurement and marketing of raw

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materials, technical support and assistance are means to reach the goals. A

concern for results, emphasis on quality and timely work and willingness to

understand problems of the entrepreneurs the staff creed and KSSIDC

constantly strive for this end.

STYLE:

In KSSIDC employees having dynamic & challenging behavior. The

targets are fixed in the beginning of the year and monitored according to the

scheme. The action plan is prepared at the commencement of the year i.e.

April of every year and work proceeds accordingly.

The style is neither strictly top down nor bottom up. It’s more of

transparent; any subordinate can interact with any superior at any time. The

decision making parameter is authoritative.

STAFF:

The functioning and activities of different departments and the personnel

have been aligned to achieve company’s business objectives by giving thrust

on rationalization of man power and focus on proper utilization. The

manpower strength as on 31st March 2008 was 372 of which 59 are women

employees. The proportion of SC/ST employees constituted 26.73%. Three

officers are on deputation from government of Karnataka and 12 officers/

officials have gone on deputation from the corporation to other organizations.

SKILLS:

The KSSIDC has personnel with a variety of skill. For different fields

they have personnel with different talents, skills and experience. It is a

participative democratic system so every decision is taken after discussion

with the personnel. Hence the personnel have good communication skills. The

company as a whole is very much skilled with the availability of intellectual

man power and resources.

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CHAPTER 3

“ORGANIZATION STRUCTURE”

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ADMINISTRATION:

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TECHNICAL SECTION:

E.E.-II Hubli

E.E.-III Mysore

AEEs-H.O. &

PNY

AEEs- Hubli, BGM, GLB

AEEs- MYS, MNG

JEs(SG)- BNG

JEs (SG)- MYS

JE (SG)- BGM

J. E.- GLB

EE (Ele)

JE (SG)-Ele- BNG/Hubli

Steno

Supdt. Engineer

EE-I BNG

CHIEF ENGINEER (Vacant)

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CHAPTER 4

“DEPARTMENTAL PROFILE”

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All Departments

1. Industrial Estate Activities:

Information such as allotment of sheds / plots, issue of

notifications, bidding, auctioning, allotment, pricing policy, execution of sale

deeds, resumption of sheds / plots etc. including Co-ordination covering

LA/LC matters.

KSSIDC Constructs/ Develops Sheds and Plots for allotment SSI

entrepreneurs in various Industrial Estates:

Table showing the Dimension of sheds :

Type

Shed

Size (In Meter)

Total Area (In Sq. Meter)

Plinth Area (In Sq. Meter)

Open Space (In Sq. Meter)

A 21x43 903.00 500.00 403.00

B 21x26 546.00 264.00 282.00

C 21x18 378.00 171.00 207.00

D 13.5X18 243.00 95.00 148.00

SM 9.50X12.5 119.00 63.00 -

M 4.25X8.5 36.00 28.00 -

Apart from the above KSSIDC has also constructed Flatted Factories in

Peenya, KEONICS, and Rajajinagar.

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Table showing the Dimension of Developed Plots:

Plot Type Area In Sq.Meter

L 785.00

M 1045.00

N 2049.00

P 903.00

Q 546.00

R 378.00

S 243.00

Odd Size

NOTIFICATION FOR ALLOTMENT OF INDUSTRIAL STRAY

SHEDS/FLATS/GODOWNS:

�� Applications are invited from S.S.I. entrepreneurs for being

considered for allotment under BID SYSTEM of Industrial Stray Sheds, Flats

& Godowns available in the below mentioned Industrial Estates in Bangalore

District.

INDUSTRIAL ESTATE SHED NO. AREA

(In Sq.Meter) BASE PRICE

VEERASANDRA 1st

stage D-82 181.72 6,56,400

VEERASANDRA 2nd

Stage C-10 382.81 18,61,600

C-11 382.81 18,61,600

C-14 382.81 18,61,600

BOMMASANDRA 1st

Stage SM-90 116.40 5,75,700

SM-91 117.20 5,77,700

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BOMMASANDRA 2nd

Stage B-9 542.85 25,07,400

HOSKOTE B-61 639.00 16,53,100

C-15 410.39 7,48,400

C-26 410.39 8,85,700

SM-47 90.00 3,05,400

SM-48 90.00 3,00,100

SM-49 90.00 3,10,100

DODDABALLAPURA A-109 989.18 31,21,500

A-110 985.80 29,97,000

B-89 538.89 17,66,700

B-100 680.00 21,05,300

C-63 361.57 12,91,900

D-50 187.62 5,00,700

MAGADI D-3 258.37 2,91,100

RAMANAGARAM C-25 313.10 11,83,900

PEENYA III STAGE C-99 338.65 18,91,000

RAJAJINAGAR -

(GODOWN) G-17 22.14 2,82,200

G-29 & 30 52.73 6,44,200

G-61 29.13 3,48,200

G-98 22.19 2,82,700

DYAVASANDRA -

(GODOWN) G-19 56.51 2,89,700

G-20 38.02 2,25,800

G-22 38.02 2,25,800

G-25 38.02 2,25,800

G-26 38.02 2,25,800

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II. INDUSTRIAL FLATS:

INDUSTRIAL ESTATE Flat No. AREA PER FLAT

(IN Sq.Meter)

BASE

PRICE PER

FLAT

ELECTRONIC CITY BL-I: A- 112, 205,

206,

212, 308

160.00 14,16,200

(FLATTED SHEDS) BL-II: A-202, 160.00 15,93,200

BL-II: A-203, 160.00 16,21,200

BL-II: A-307,308, 310 160.00 14,16,200

BL-III: A-307, 314 160.00 14,16,200

BL-I: B-203,309, 128.00 11,30,300

BL-II: B-306 128.00 11,30,300

BL-III: B-202,302 128.00 11,30,300

BL-I: C-311 112.00 9,87,500

BL-II: C-111, 204, 304 112.00 9,87,500

PEENYA II STAGE F-2, 5, 6, 7, 8, 10, 11

& 12

301.49 27,44,200

PEENYA III STAGE FF-6 & 7 302.23 28,77,400

SF-10 & 11 302.23 28,77,400

RAJAJINAGAR GF-3, SF-3 47.18 10,54,700

FF-5 69.60 16,00,400

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LAND ACQUISITION DETAILS:

Sl. No. Description Extent in Acres.

1 Total Acquisition (since Inception) 2844.00

2 Through KIADB 1930.00

3 Through Govt. & Other Agencies 913.00 FOR REGISTRATION OF LAND/SHED:

The concession of Stamp Duty exemption and reduction of

Registration Charges will be available for lease deeds, lease-cum-sale and

absolute sale deeds executed by industrial units in respect of industrial plots,

sheds, flats allotted by State Infrastructural Developmental Agencies viz.

KIADB, KSSIDC, KEONICS, KSIIDC etc. and industrial co-operatives.

Industrial workers housing tenements and residential plots developed by

KSSIDC, KIADB and KEONICS will also be eligible for concession of stamp

duty exemption and reduction of registration charges.

The concessions will be as under:

Zone

Extent of exemption on

stamp duty

Regn.Charges applicable

Tiny and

Small Scale

Industry

Medium &

Large Scale

Industry

Tiny and

Small Scale

Industry

Medium & Large

Industry

A Nil Nil Normal Normal

B 100% 50% Re. 1.00 per

Rs. 1000

50% of normal charges

C & D 100% 100% Re. 1.00 per

Rs. 1000

Re.1 per Rs.1000

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TERMS & CONDITIONS:

1) Prices indicated are approximate / tentative and are likely to increase or

decrease depending upon the cost components / actual dimensions of plots /

bit of lands. As per the rules of the Corporation. If there 'is any excess area

available more than the notified area, cost will be applicable as per the rates

fixed by the Corporation.

2) The Prescribed Application Forms and supplementary Application Forms

in duplicate along with the copies of sketches of the Plots can be obtained free

of cost from the office of the Chief Manager (IEs)-Zone-I or from the

respective Offices of Deputy Chief Manager (IEs)- Bangalore- Urban/ Rural -

K.S.S.I.D.C. LTD., Industrial Estate, Rajajinagar, Bangalore - 560010 /

DCM(IES), Peenya Division, KSSIDC LTD., PEENYA-SECONDSTAGE

,BANGALORE-58 on any working day during the Office hours or can be

down loaded from our website www.kssidc.kar.nk.in.

3) The filled in Application ·Form along with the supplementary application

form should be submitted in duplicate accompanied by copies of the SSI

Registration Certificate issued by the Department of Industries & Commerce,

detailed Project Report, documents in support of Educational Qualification,

with Latest Photograph, Caste Certificate in case of SC/5f applicants along

with Earnest Money deposit of 5 % of the cost of the Shed/ Plot /

Flat(refundable in case of non allotment &adjustable towards cost of Shed

/Plot / Flat in case of allotment and subject to forfeiture in case of failure to

accept the allotment of the Shed/ Plot/Flat ) PLUS scrutiny fee of

RS.562.00(inclusive of taxes & non refundable) by way of Demand Draft

drawn in favour of KSSIDC Limited payable at Bangalore. In case of SC/ST

applicants and women entrepreneurs the Scrutiny fee is Rs.225.00 (inclusive

of taxes & non refundable). Applicants shall enclose all the relevant

supporting documents in support of the information furnished in the

application & in supplementary application.

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4) In case of existing units, documents like Audited Balance sheets (for 2

years)

& LT. Returns (for 3 Years) or PMT issued by DIC, or Vat Registration

Certificate etc.are to be famished.

5) The filled in application form with all enclosures may be submitted on

Or before 5.30 PM on 31.03.09 at the Office of Chief Manager (IEs) Zone-

At the respective Offices of Deputy Chief Manager (IEs)- Bangalore Urban

/ Rural - K.S.S.I.D.C. LTD., Industrial Estate, Rajajinagar, Bangalore -

560 010 / DCM (IES), Peenya Division, KSSIDC LTD., PEENYA-SECOND

STAGE, BANGALORE-58.

6) Allotment of Shed / Plot /Flat is on "AS IS WHERE IS BASIS", 99%

Of the allotment price of the plot is to be paid within 45 days from the date of

Communication of the allotment. In case of sheds / Flats, the allottee will

have the option of either payment of 99% of the shed / Flat price in one

Lump sum with usual six years lease period or the payment with EMI's spread

Over the lease period of six years.

7) Pre-qualification of application to determine eligibility will be followed

& the applicants eligible as per pre-qualification criteria will be considered

for allotment.

8) 15% of the Plot / Shed /Flats will be allotted to SC, 3% to ST and 2%

to Nomadic Tribes applicants, 3% for specially enabled persons with overall

30% representation to the Women Entrepreneurs.

9) Applicants belonging to SC and ST category are eligible for a subsidy

amount of 40% of the Shed / Plot price subject to maximum of Rs. 2.00

Lakhs. In case of allotment more than one Shed / Plot to the same applicant

Subsidy will be limited to 40% of the total price of the allotted Shed / Plot

subject to maximum limit of Rs.2.00 Lakhs.

10) An applicant may apply for one or more than one Shed / Plot / Flat

& in such cases, separate EMDs are to be paid for each Shed / Plot. / Flat.

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11) Applications in the prescribed format without requisite enclosures and

EMD are liable to be rejected.

12) Allottees shall construct the industrial work shed / factory building

Within a maximum period of 2 years from the date of taking the possession

ofthe plot and after getting approval of plans from the competent authority. In

case of sheds, Industry shall start within one year from the date of

Possession.

13) Sale deed of Shed / Plot will be issued only after completion of

Minimum required lease period of 2 years and functioning of the unit and

Fulfillment of other terms and conditions indicated in the allotment letter &

the Lease cum Sale Agreement.

14) In case of non-starting of the Industry within the stipulated period

allotment of the shed will be cancelled and the amount paid will be forfeited.

Likewise, the allotment of plot will also be cancelled and the amount paid will

be forfeited if the allottee fails to construct the building and start the' Industry

within the stipulated time.

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2. Commercial Department:

Identifying Market Demand for supply of Industrial Raw Materials,

procurement of industrial Raw Materials and its Geographical distribution to

the Zonal Offices, identifying the end users for issue of Raw materials,

invoicing, supply chain management, pricing, offering discounts, publication

of cinematic films, finalizing tenders for transportation etc. Entrepreneurial

Guidance Cell subsidy for Iron and Steel disbursement and allotment / Iron

and Steel to SSI units, demand survey of Iron and Steel, placing indent and

requirement before the ministry of steel.

In the Commercial Department they perform the activities of sale of raw

materials.

The Commercial Department structure as shown in following chart,

General Manager (PR/Coml)

Chief Manager

Deputy Chief Manager

Manager

Assistant Managers

Group- III (Junior Assistants)

Group- IV (Senior Assistants)

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PROCUREMENT AND DISTRIBUTION OF RAW MATERIALS

(A) PROCUREMENT

� Raw materials like Iron and Steel are procured from Steel Authority of

India, Tata Iron and Steel Co., Rastriya Ispat Nigam Ltd., and Jindal

South West.

� Government of India allocates the quantity of Steel once in a year to

KSSIDC with Rs.550/- rebate per month.

� Items like MS Angles, MS Channels, MS plates, HR Sheets , CR Sheets,

GP Sheets, Joists, MS Rounds, TMT Bars (Thermo Mechanically Treated

for extra high strength) etc.

B. DISTRIBUTION

� KSSIDC has established 23 outlets for distribution of raw materials

throughout the State.

� One big stockyard with railway siding facility in Bangalore.

� Materials will be stock transferred to all the 23 depots from stockyard.

� Needy SSI units purchase the materials from the nearest outlet.��

� KSSIDC has also allotted lands in strategic locations adjoining

State/National highways for establishing Petroleum Product outlets

On long lease basis.

CONSIGNMENT AGENCY UNDER RAW MATERIALS ACTIVITY

This Corporation has been appointed as the ‘Consignment Agent’

for Karnataka for the products manufactured by Kerala State Bamboo

Corporation Limited, Kerala under the brand name “BAMBOOPLY”.

Bamboo Plywood is made out of Bamboo Mats and Siler Oak Sheets. Bamboo

Plywood is water-resistant, heat resistant, termite proof, and economical, long

lasting, fire retardant, artistic and eco-friendly. It is ideally suited for

partitions, false ceiling, furniture, shutters, and bus seat backings and for

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concrete shuttering. This plywood’s are also ideally suited for veneering and

for storage of food grains.

Bamboo is a fast growing grass, which is naturally available in abundance in

the forests of South India. Bamboo fibers are stronger than traditional

plywood and consequently cheaper than conventional plywood of equal

thickness.

Bamboo plywood has natural weaving pattern and looks elegant

which makes them versatile in use. Bamboo Plywood of different thicknesses

and sizes will be marketed through our Raw-material outlets.

KSSIDC IS OF CONSIGNMENT AGENT IN KARNATAKA FOR THE

PRODUCTS OF KERALA STATE BAMBOO CORPORATION

LIMITED MANUFACTURERS BAMBOO BOARD FACTORY:

Decorative laminations from the Strongest Natural Bamboo Fibre.

Water & Heat Resistant, Termite Proof, matchless in strength, Durable,

Elegant, Eco-friendly, wood, Substitute Material.

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MULTIPURPOSE USES

False ceiling, Partition, Panelling, Table, Tea poy Top, Interior Decoration,

Auto Body Building etc., PRICE LIST

Feet: 6’ x 3’ 6 ‘x 4’ 8’ x 4’

Meter: (1.83x0.92) (1.83 x 1.22 ) (2.44 x 1.22 )

Sl.N0

Thickness Rate per Sq.Meter.

(In Rs)

Rate per Sq.Feet. (In Rs)

RATE PER SHEET (In Rs) 6’x3’ 6’x4’ 8’x4’

1 3 mm 172.20 16.00 288.00 384.00 512.00

2 4 mm 199.10 18.50 333.00 444.00 592.00

3 6 mm 274.40 25.50 459.00 612.00 816.00

4 9 mm 387.40 36.00 648.00 864.00 1152.00

5 12 mm 473.40 44.00 792.00 1056.00 1408.00

1) The rates are net Ex-Factory, excluding taxes.

2) The rates are subject to change from time to time.

The company has also established 27 Raw-material depots

throughout the State to cater the needs of SSI units. The is company is

currently handling Industrial Raw Materials like Iron & Steel, Pig Iron,

Paraffin Wax, Coal & Coke, IPCL products. The industrial Raw Materials are

produced from main Steel producers namely SAIL, TISCO, IISCO, VSP, &

coal India ltd.

The KSSIDC is also acting as a acting as a consignee to distribute

IPCL Products marked by Reliance India ltd to cater the needs of SSI units at

Bangalore, Hubli & Mangalore.

The KSSIDC is also distributing the raw materials required by

Government Departments. & KSSIDC has also established centralized

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Stockyard with Railway siding facility at Channasandra Stockyard is capable

of handling more than 1,00,000 Mts. Of Iron & Steel Materials including

Coal & Coke.

The ministry of coal Government of India has announced New

Coal Distribution Policy for the benefit of Small & Medium Industries to

procure their requirement of Coal through a State Nominated Agency.

Under the above Scheme the Government of Karnataka has an s

nominated KSSIDC as State Agency for distribution of Coal to Small &

Medium Industries in the State those requirements is below 4200 tonnes per

Annum. Accordingly, KSSIDC entered with Fuel Agreement with M/s Western

Coal Fids Limited Nagpur, Maharashtra & lifting the Coal & distributed to the

Registered Small & Medium Industries in the State.

KSSIDC is also initiating to distributable receipt of Indian Oil

Corporation Limited (IOCL) products like Plastic Granules, Packed Bitumen, &

Paraffin Wax, etc.

3. Engineering Department:

Inviting Tenders for construction activities awardal of

tenders. Contractor’s management, infrastructural development in Industrial

Estates, maintenance of Civil Works, building management and all functions

relating to Engineering Department and Electrical works.

NOTICE INVITING QUOTATIONS

(For Quality Control Services)

1. KSSIDC intends to take up massive construction activity at various

places in the State. The works taken up are WBM roads, Metalling,

Asphalting to the roads in Industrial Estates, Drainage works, Construction of

sheds, M.S. Buildings, Common Facility Centre’s, Formation of new

Industrial estates, Residential layouts under Kayakanagara Yojana etc.

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2. KSSIDC intends to appoint Third Party Quality Control/Quality

Auditing Agencies for the above said works. The details of proposed works

are at Annexure-‘A’.

3. Interested agencies may quote their lowest rates for the quality

auditing of the above works either in lump sum / on percentage basis. The

terms and conditions are indicated below:

TERMS & CONDITIONS

TERMS & CONDITIONS FOR QUALITY CONTROL/QUALITY

AUDITING SERVICES FOR KSSIDC WORKS.

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Buildings:

A minimum of 3 visits will be carried for quality inspection under the

following stages:

After excavation for foundation- for inspection of soil and confirmation of

type of foundation recommended.

b) Prior to casting of plinth slab/beam.

c) Prior to slab concreting. For inspection of shuttering and reinforcement

fabrication.During finishing works in progress for verification of quality of

construction, &overall examination of building, etc.

Roads

Inspection of pre-site conditions before work is taken up, after formation of

roads for inspection of type of soil and sub-base.

Inspection of WBM road formation, metal collection and metalling process.

Inspection of pre-road condition, material collection, inspection of asphalting

process.After completion of WBM road/asphalting road for inspection and

verification.

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Culverts / CD works / Drainage

After excavation of foundation - for inspection of soil and confirmation of

type of foundation recommended.

Prior to casting of slab for culvert / CD works and casting of PCC / SSM

works in drains.During finishing works in progress for verification of quality

of works, overall examination of finishing works in culverts / CD works and

drainage.

PARTICIPATION IN EXHIBITIONS

The Company up to 1980 participated in a large number of National and

International exhibition as a part of dissemination of information as well as to

create Marketing Outlets for the products of SSI units. Participation in the

International Exhibition has resulted in securing substantial export order by

the SSI units. With this expertise the Company looks forward to help Export

Units to obtain their orders.

The Company up to 1980 participated in a large number of

National and International exhibition as a part of dissemination of information

as well as to create Marketing Outlets for the products of SSI units.

Participation in the International Exhibition has resulted in securing

substantial export order by the SSI units. With this expertise the Company

looks forward to help Export Units to obtain their orders.

OTHER ACITIVITIES:

The Company as a nodal agency for Co-Ordination with

Indian Standard Institution set up a laboratory at Peenya Industrial Estate for

ensuring the quality of the products manufactured in the State. This laboratory

provides modern testing facilities for types of products manufactured in

Engineering, Chemical, Electrical, Electronics and other similar areas. This

project with an investment of Rs. 100 Lakhs. Is financed by the State Govt.,

KSSIDC, KSFC, KSIIDC, NGEF, MML and IDBI. Further, the cost of

standardization and licensing fee will also be kept to minimum since the

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laboratory will work on no profit basis. Likewise National Institute of Design

have come forward to associate with KSSIDC in setting up a branch of the

National Institute of Design at Industrial Estate, Rajajinagar and is extending

its services for the benefit of the small scale industry in improving the product

design and allied matter. Necessary infrastructure facility has been provided

by KSSIDC to this center.

Company has also provided the accommodation to National Productivity

Council for maintenance and service center at Peenya for the benefit of the

Small Scale Industries.

ENTERPRENEURAL DEVELOPMENT PROGRAMME.

The Company is extending necessary assistance for

organizing Entrepreneurial Development Programmes in various parts of the

State in association with TECKSOK and other commercial banks with a view

to identify the talents and to improve the quality of Entrepreneurial skill

amongst the educated youth.

SCOPE OF WORK :

KSSIDC requires support services and expertise for:

(1) Identification of lands suitable for establishment of Gems & Jewellary

Parks, Apparel Parks, Comprehensive Industrial Estates, and Housing

establishment for industrial workers. Establishment of functional industrial

estates throughout the State.

(2) To set up permanent industrial exhibition and convention centers in and

around Bangalore.

(3) Marketing vacant properties throughout the State of Karnataka.

(4) Identification of ideal locations and suitable lands for establishing

projects of the Corporation.

(5) Preparation of Project reports for the various projects detailed in (1) to

(4) above.

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(6) Negotiations with Banks / Financial Institutions for arranging finance

and for completion of the projects of the Corporation.

(7) Negotiations with statutory and other agencies for implementation of the

projects.

(8) Evaluating tenders from construction agencies and preparing a detailed

report for the consideration of the Managing Director.

(9) Arranging for joint ventures with land owners / investors.

(10) Undertake to prepare necessary plans and obtain approved plans from the

concerned Agencies like local bodies and also ensure that the requirement of

pollution control and other statutory bodies are also met. Apart from this, they

should make necessary applications and follow up and obtain clearances from

the Govt. of India Organizations, Departments, as well as Excise and CBDT

etc., for clearances wherever required and ensure the projects fit into the tax

planning claims and benefits provided under I.T. / Excise Acts.

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4. Administration:

Information ccerning manpower, recruitment, termination, promotion,

disciplinary proceedings, transfers, the entire spectrum of human resource

management, Land acquisition matters, interface with Government agencies,

welfare activities of employees and all other information related to human

resources and Administration matters, including liaison with KIADB.

Maintenance of land records of industrial estates and its management.

Providing Securing Guards.

Administration Department Chart

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ACTIVITIES OF PERSONNEL DEPARTMENT :

� Monitoring the Man Power of KSSIDC and Developing of staff to the

various Sections/Branches/Divisions.

� Imparting training to the staff on various subjects organized through

KSPBE and other Organization. An organizing computer training programme

to needy staff based on request from the concerned officers of the KSSIDC

with the assistance of Corporation Department.

� Appointment of Security Agencies to deploy Security Personnel to

various Industrial estates depending up on requirement.

� Various Staff Welfare Measures under HRD.

� Initiation of Disciplinary proceedings against erring Officers/Officials.

� Providing periodical statistical information to the Government and to the

other inter-connected departments.

Statistical Information of Officers/Officials working in Head Office and

Branch Offices, KSSIDC as on 21-10-2008

SL

NO.

LOCATIONS

No of Employees working TOTA

L

ADMN

TECHNICAL

1 Head Office

(In & around Bangalore)

178 16 194

2 Branch Offices 127 24 151

3 Deputation to other

Boards/Corporations/OOD

5 11 16

4 Deputation from other

department to KSSIDC

2 0 02

5 Deputation from 17

TOTAL 312 51 380

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BENEFITS TO THE STAFF MEDICAL FACILITIES

� Rs.3000/- per annum to meet out-patient medical expenses @ Rs.1,500/-

for every six months on production self certificate.

� Rs.3000/- per annum to meet expenditure on diagnostic tests as Out-

patient expenses against production of bills from the recognized hospitals.

� Spectacles re-imbursement of Rs.300/- for three times during service.

� Reimbursement of In-patient expenditure at all recognized hospitals for

self & dependents. The recognized hospitals list includes WOCKHARDT,

MANIPAL, MALLYA, NARAYANA HRUDAYALAYA, HOSMAT, Etc.,

as per the norms of the Company.

� Staff Benevolent Fund Trust (SBF) is in existence in which the

management is contributing Rs.30, 000/- p.a.to the trust for the purpose of

interest free Bridge loan to the medical treatment. Employee’s contribution is

at Rs.5/- per employee per month. In case of death while in service a sum of

Rs.10, 000/- will be given by SBF Trust to the legal heirs.

THE NEED & REQUIREMENT��

KSSIDC desires to appoint consultants to provide guidance for

commissioning various projects of the Corporation detailed as above. The

consultant should possess an in-depth knowledge in identifying the lands

required for the projects and arranging the finance required for the projects at

a reasonable rate of interest. The consultants are required to be involved in

the projects from the project preparation stage till the completion of the

projects including marketing of the properties developed. The consultant

should have necessary infrastructure, expertise and human resources required

for the said purpose. (Consultant should have technical skills, knowledge, and

qualified staff in the technical fields pertaining to the project for preparation

of Project Reports and monitoring projects, which are going to be undertaken

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by the Corporation). Thorough understanding of the geographical location

and the ability to liaison with other Government departments / agencies and

others is a basic and primary requirement.

5. Public Relations:

Maintain of stock register’s and stock information

Release of notifications, paper advertisement, procurement and maintenance

of vehicles, purchase of all types of stationeries and Office furniture’s,

subscription to news papers and periodicals, maintenance of Office

equipments like fax, telephone, Xerox, protocol maintenance of stock

register, stock verification etc.

Assistant Public Information Officers and Public Information Officers are

advised to address the grievances of the citizens in the light of the right to

information act. In case of any clarifications or doubts on this, the Company

Secretary of the Corporation may be contacted.

Public relations are the ongoing effort to create and maintain a positive

image of your organization in the eyes of the public. It is important that the

public thinks about you in a positive way because all organizations need to be

trusted and supported by their target group, constituency and/or members.

People who use your services will expect you to be helpful, friendly, efficient

and professional. Most people will contact you by visiting your office or by

phoning you. This means that the phone and office are two of the most

important areas where you should create a positive image.

In case interaction with the public is bad, it can have a devastating effect

on your organization’s reputation. It is much easier to build a good public

relations culture in your organization, than it is to reverse a bad image once it

exists. All these things KSSIDC adopted in good manner all employees

treated outsiders (public) as very reverence feeling so people are very much

satisfied with their co-operation so they people called KSSIDC organization

as “Trust Like Never Before”.

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6. Finance Department:

Fund management, asset management, all information pertaining to finance

and accounting functions including preparation of financial accounts, tax

management, book keeping, compliance of all statutory regulations

concerning financial and tax management, information relating to Industrial

Estate accounts, Commercial Accounts, Works Accounts etc.

In the Finance Department perform mainly the activities of Financial &

Internal Audit Activities.

The Finance Department structure as shown in following chart,

General Manager (II/IEs)

Chief Manager I/C

Deputy Chief Manager (C.A)

Manager

Assistant Managers

Group- III (Junior Assistants)

Group- IV (Senior Assistants)

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Financial Results

Sl.

No

Particulars 2007-2008 2006-2007

1 Gross Income 10845.80 7768.03

2 Gross Expenditure 9726.62 7244.71

3 Profit before Tax 1119.18 523.32

4 Tax Provisions 411.00 311.29

5 Net Profit-after adjustments 747.58 233.32

6 Proposed Dividend 123.32 49.32

7 Surplus for the Year carried 599.30 175.62

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STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

A. Method of Accounting:

1. The books of Accounts are maintained on accrual system of accounting &

recognize significant items of Income & Expenditure on accrual basis. The

financial statements are prepared under historical cost convention & in

accordance with generally accepted accounting principles & provision of

Companies Act 1956. The accounts are generally prepared keeping the relevant

Accounting Standards prescribed by Institute of Charted Accountants of India to

the extent applicable to the activities of the company. However in the following

cases Cash accounting is followed;

a) Accounting of water charges received from the allot tees in industrial

estates.

b) The service & maintenance charges as per decision of board made during

1990 received from the allottees maintenance of industrial estates.

c) Premium paid on the Insurance cover of the Assets of the company

including current assets.

d) Insurance claims accounted as & when received.

e) Encashment of leave surrendered by employees while in service.

f) Custodian Charges received from KSFC in respect of Sheds Seized by

them.

B. Income Recognition:

The rental & other dues from the allot tees of Hand Tools Project,

Antharasanahally Industrial Estate, will be considered on receipt basis after

rehabilitation proposal sanctioned. No income under this head is so far been

considered in the accounts in view of sickness of all the units & there in ability

to meet the Company’s demand.

Terminal incomes if any, arising on account of seized sheds where no disputes

are pending from ex-allottee are recognized on their allotment.

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C. Fixed Assets:

The Gross block of Fixed Assets is shown at cost, which includes taxes, duties

& other identifiable direct expenses in acquisition of fixed assets.

In cases of factory sheds, which are let out either on rental basis or used by

KSSIDC are treated as Fixed Assets & the cost includes prorated infrastructure

expenditure in the same manner as charged to the other entrepreneurs.

D. Depreciation:

The company decided to account the residual value as under:

a. In respect of Assets where the value remaining in books, before providing

such additional depreciation, shows residual value to the extent of 5%

b. In respect of Assets where after providing Current year depreciation , the

residual value remaining to the extent of 5% or below

As additional depreciation in that year & charged to P&L Account in that year

& a separate disclosure on the effect of providing such additional depreciation

will also be shown in the notes to account in schedule AB.

E. Investment:

The investments are shown at cost. Provision for diminution in the value of

Long-term investments is made only if such decline is other than temporary in

the opinion of the management.

F. Inventories:

a. Loose tools Depreciated at 15% on W.D.V.

b. Industrial Raw materials stock in trade valued at cost or realizable value,

whichever is lower, the Company has adopted FIFO method for the purpose of

valuation.

G. Retirement Benefits:

Retirement Benefits are dealt with, in the fallowing manner. Contributions

to Provident Fund are accounted on accrual basis with corresponding

contribution to regional Provident Fund Authorities.

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H. Small Scale Industries Promotional & Development Expenditure:

The company contributes to certain Institutions/Associations engaged in the

promotion & development of Small Scale Industries either in part or full to meet

revenue and/or of capital expenditure of such institutions as decided by board &

such expenses are accounted as revenue expenditure.

I. Prior Period Items Etc:

Adjustments arising due to Errors or Omissions in the Financial Statements

of earlier years are accounted.

J. Segment Accounting Policy:

Policy on Primary Segment Reporting: The main activity of the Corporation

consists of establishment of Industrial Estates & Trading in Industrial Raw

material to facilitate the development & growth of the Small Scale Industries in

the State of Karnataka. Accordingly, for the purpose of the Segment Reporting,

the Corporation has identified two business segments Industrial Estate Activity

& Industrial Raw material Activity.

K. Provision for Current & Deferred Tax:

Provision for Current Tax is made after taking in to consideration of

benefits admissible under the Provision of Income Tax Act of 1961.

Deferred Tax resulting from “Timing difference” between book & Taxable

profit is accounted by using tax rates & laws that are enacted or substantially

enacted as on the balance sheet date. Deferred Tax Asset is recognized &

accounted only to the extent that there is a reasonable certainty that the asset will

be realized in future.

L. Grant & Subsidies:

Grants received from Government of Karnataka are fully credited to

deferred Government Grants account & are being accounted as under:

a. In respect of Government Grants related to depreciable Fixed Assets, are

being allocated to income over the period & in promotion in which depreciation

on the Assets is charged.

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b. In respect of Grants received for non- depreciable Assets, based on policies

formed by Government & Management proportionate value of selling price

fixed for the Shed is transferred to individual allot tees account as & when

Allotment is made & possession is given on Lease-Cum-Sale basis or out-right

basis.

M. Borrowing Costs:

Borrowing Costs that are directly attributable to the acquisition or

construction of qualifying assets are capitalized as part of the cost of such assets.

A qualifying asset is one that necessarily takes substantial period of time to get

ready for intended use. All other Borrowing Costs are charged to Revenue.

N.14. Contingent Liabilities:

These are disclosed by way of notes to the Balance Sheet. Provision is

made in respect of those contingencies, which are likely to materialize into

liabilities after the year end, till finalization of accounts & have material effect

on the position stated in the Balance Sheet.

O.15. Related Party Disclosures:

Parties are considered to be related if at any time during the reporting period

one party has the ability to control the other party or exercise significant

influence over the other party in making Financial and/ or operating decisions.

As the company is State Controlled Enterprise related party disclosures are not

provided in the Financial Statement in respect of related party relationship with

other State Controlled Enterprises & transactions with such Enterprise. However

in respect of transaction between related parties during existence of a related

party relationship, a separate disclosure is being made.

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7. Audit:

Scrutiny of files which requires certification by the Internal Audit

Department, pre-audit of files concerning issue of sale deeds, inspection of raw

material godowns, issues relating to Audit Sub-Committee of the Board, Stock

verification of Iron and Steel etc.

The company has internal audit system to commensurate the size & nature

of its business. However, the scope & extent of internal audit, needs to be

enlarged having regard to the complexity & diversified operations of the

company. The period of coverage has to coincide with that of the financial year

& the reports should be available for review.

8. Legal and Secretarial:

Information relating to the Board Meetings, Sub-Committees of the Board,

Agendas to the meeting, minutes of the meeting, constitution of the Board and

its Sub-Committees, statutory compliance of Corporate Laws as applicable to

the Corporation, Statutory Registers, Information relating to legal cases like

filing of suits, Writ Petitions, Compliance of the Court / Tribunal / Commissions

orders, information relating to the Advocates on the panel, Information

regarding legal opinion, information relating to committee / Board / General

Meetings, details of Directors / Share holders etc.

Main activities:

� Contesting court cases.

� Furnishing legal opinions.

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ADVANTAGES IN HAVING SSI UNIT IN KSSIDC INDUSTRIAL

ESTATE:

KSSIDC functions for all practical purposes like a core corporate body.

Estates are marked with a difference from Normal Private Estate. The

advantages to be a part of KSSIDC are:

1. KSSIDC Land is for Industrial Purpose. So no need to waste time for

N.A./NOC. Establishes its estates after verifying the viability and Water, Power,

Linkages, Communication, disposal of waste the entrepreneur gets a really

developed and planned area.

2. KSSIDC estates are provided with required amenities like Training

institute, P&T office, dispensary, police chowky, community garden banks

canteen etc.,

3. All titles related to land/building within KSSIDC estates are free from any

encumbrances and are easily marketable.

4. An entrepreneur can start the industry by collecting necessary possession

certificate and by paying necessary EMD.

5. KSSIDC provides ready to occupy sheds for immediate starting of

industries and also provide Gowdown for storage of its materials.

6. KSSIDC being a Government Organization is, transparent and of the prices

of land/building. The prices so fixed are accepted by Financial Institutions for

quick approval of loans.

7. KSSIDC estates, once declared as notified area, are free from Local Taxes

And Octroi.

8. KSSIDC estates, provides a unique opportunity to entrepreneur cluster

benefits related to Raw material, market technology services, linkages etc.,

9. Any up gradation programme undertaken in KSSIDC estate will be

advantage to all industries located therein.

10. KSSIDC provides special services in acquiring and allotting land to SSI

entrepreneurs.

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11. KSSIDC allots land on top priority basis to start industry by SC/ST/SEDC

applicants, further to needy SC & ST units of Backward areas will be paid

subsidy amount and also reduced payment of EMD / application / scrutiny fee.

12. KSSIDC divisional offices established in the state will have raw-material

depots to distribute raw materials to SSI units.

13. KSSIDC estate provides ISI testing units to help SSI units to process quality

products.

14. KSSIDC collects the installment amount due from shed Allottees on annuity

method. KSSIDC estates where SSI units established will get easy loans from

financial institute and nationalized banks for purchase of machinery and also

loans to purchase raw materials.

LIST OF MAJOR PROJECTS HANDLED BY KSSIDC

1. A prestigious Government Tool Room Training Centre (GTTC) was

established with the assistance of Dutch Government at Industrial Estate

Rajajinagar.

2. An exclusive garment complex has been established at Rajajinagar Industrial

Estate to accommodate garment units.

3. Multi-storied complexes were established at Electronic City industrial estate

Bommasandra to accommodate electronic industries and Software Technology

units.

4. ISI Complex at peenya established to test and certifies the product

manufactured by SSI units.

5. Multi-storied complexes with flatted factory accommodation established in

each of the three stages of Industrial Estate Peenya to cater the needs of light

engineering industries, garments, electronics and others industries.

6. Multi-storied Commercial Complex established at Industrial Estate Shimoga

Multi-storied Commercial Complex was established at Industrial Estate

Gulbarga.

7. Power loom sheds for KSPDC at Siguli was established.

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8. Morarji Desai Residential School Complexes at five places in Karnataka was

established.

JOINT VENTURE PROJECTS:

The Company has entered into an MOU with M/s Karnataka State Industrial

Investment Development Corporation to construct Information Technology and

Bio-technology Park in Rajajinagar Industrial Estate, Bangalore at a cost of 37

Crores. The land owned by company to the extent of 1.6 Acres has been leased

out on Built Operated on Transfer (BOOT) system for 30 years. The

construction is in progress.

FUTURE PLANS:

� Developing of New Industrial estates at taluk levels.

� Developing of growth Centre at Industrially backward areas.

� Providing of effluent treatment plants at required estates.

� Rendering of Solid waste Management services.

� Improving of Road and drains facilities at the identified developed estates

out of Grants received from Govt. under Integrated Infrastructure

Development Scheme.

� Distribution of industrial raw materials to SSI units established at taluka

levels on freight to pay basis.

� To act as catalyst for export units.

� To extend Hire Purchase Machinery Assistance.

� To Promote Small Industry Cluster Development Programme.

� To encourage establishment of Mini Tool Rooms and Testing Centre’s at all

the developed estates.

� To explore ISO 9000/ISO 14001 certification Reimbursement Scheme for

individual Ancillary/tiny units

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KSSIDC future Plans:

� Establishment of Industrial Township by acquiring 1032 acres of land at

Ganapathi Halli, Bangalore district.

� Establishment of Satellite Industrial Estates near Bangalore for shifting the

units situated in residential areas.

� Establishment of Gem & Jewellery Park near Bangalore.

� Establishment of 8 kayakanagaras for housing tiny industries.

� Industrialization of 79 most & more backward Talukas as per the

recommendations of Dr.Nanjundappa’s report under “Kaigarika Vikasa

Yojane” introduced by Government of Karnataka

� Establishment of functional estates for

Food Processing Agro & Horticulture

Garments Cold Storage

Pharmaceuticals Agarbathi

Granites Automobiles

Concessions Offered

� Reservation ass per Government policy.

� 40% subsidy in price for sheds / Plots for SC/ST to a maximum of Rs. Two

Lakhs.

� Other subsidies such as Capital Investment Stamp Duty exemption,

Registration charges, Tax concessions etc., will be extended as per

Industrial policy of 2006-2011 of Government of Karnataka.

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The main objectives of KSSIDC are as follows:

KSSIDC provides a package of services to SSI units in the

State, which include establishment and maintenance of Industrial Estates all over

the State. KSSIDC Limited provides basic infrastructure facilities to small scale

industries in the State, construction and allotment of sheds / plots to SSI units in

the industrial estates located in Karnataka, procurement and distribution of raw

materials to SSI units, providing technical information and support, and also

participation in the SSI development schemes of the Govt. of Karnataka.

NEW PROJECTS AND VISION:

KSSIDC desires to set up Gems & Jewellary Park, Apparel Park,

Garments Park etc., of International standards and comprehensive industrial and

functional estates at various places in Karnataka. KSSIDC intends to set up

industrial workers housing and industry complexes. It is also intended to set up

permanent industrial exhibition and convention centers in and around

Bangalore. Apart from this the Corporation desires to entrust the work of

marketing its existing properties throughout the State of

Karnataka. Identification of ideal locations and suitable lands for establishing

projects of the Corporation.

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CHAPTER 5

“SWOT ANALYSIS”

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SWOT ANALYSIS:

Organizational strategies are the means through which companies

accomplish their missions and goals. Successful strategies address four elements

of the setting within which the company operates: (1) the company's strengths,

(2) its weaknesses, (3) the opportunities in its competitive environment, and (4)

the threats in its competitive environment. This set of four elements—strengths,

weaknesses, opportunities, and threats—when used by a firm to gain competitive

advantage, is often referred to as a SWOT analysis. SWOT was developed by

Ken Andrews in the early 1970s. An assessment of strengths and weaknesses

occurs as a part of organizational analysis; that is, it is an audit of the company's

internal workings, which are relatively easier to control than outside factors.

Conversely, examining opportunities and threats is a part of environmental

analysis—the company must look outside of the organization to determine

opportunities and threats, over which it has lesser control.

STRENGTHS:

� There is flexibility in sheds & plots allotment according to the requirements

& so acquisition of acres of land by the Government.

� KSSIDC estates are provided with required amenities like Training Institute,

dispensary office, police chowky, community garden bank canteen, IT park,

etc.,

� All titles related to Land/Building with in KSSIDC estates are free from any

encumbrances & are easily marketable.

� There is expansion of SSI sector & its share in Industrial Output.

� There is mobilization of capital & entrepreneurial skill.

� There is Regional dispersal of industries.

� There are less industrial disputes.

� Effective & supportive from the Top management.

� All employees are highly moralized working together in friendly

environment accomplishment KSSIDC Vision.

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� Employees achieve success through working as a TEAM (Together

Everything Achieve Maximum).

� Open to change, hungry to Learn,�Anxious to move quickly to good idea.

WEAKNESS:

� There is scarcity of Finance & Credit.

� There is no technologically advanced.

� There is problem of Raw Material – Absolute scarcity of Raw Material, &

High Cost.

� Not adoption of computerized inventory control technique in godowns.

OPPORTUNITIES:

� Investments are made from many Large-Scale Industries.

� Effective utilization of uncultivated Land.

� Make use of all available resources in most effective & efficient manner.

THREATS:

� Competition from large companies is increasing.

MISSION STATEMENT

The corporation’s principle objective is the promotion and development

of Small Scale Industries in the state. Construction and utilization of

infrastructure especially in backward areas procurement and marketing of raw

materials, technical support and assistance are means to reach the goals. A

concern for results, emphasis on quality and timely work and willingness to

understand problems of the entrepreneurs the staff creed and KSSIDC constantly

strive for this end.

VISION:

“AN INDUSTRIALLY PROSPEROUS KARNATAKA IS OUR VISION”

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Need for the study

The need for study is to acquire in depth knowledge about the

KSSIDC .It helps to compare the theoretical knowledge with practical aspects

during the study one has to acquire knowledge about origin, Growth, current

status & working condition of the organization based on data collected to make a

SWOT Analysis & draw conclusions.

Objectives

� To study about different departments & their real working conditions in the

Organization.

� To know about the different types of statutory & non statutory welfare

activities provided in the organization.

� To know about the work culture rules & procedures & Strength of the

Organization.

� To know about the hierarchy of organization span of control.

� To know about the maintenance of workforce in the organization.

� To analyses current status & future prospects of the organization.

� To analyses the relationship between management and workers.

METHODOLOGY:

The study was conducted as to know organization structure in all

departments & their functions at KSSIDC .The study was non descriptive in

nature an attempt was made to know all the organization structure at KSSIDC.

The primary & secondary data are being collected for the purpose of

study. The primary data are collected through discussion interview by taking

prior appointment with concerned executives in all departments. The secondary

data are collected through company broachers, records, annual reports, journals,

etc.

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Limitations of the study

� The duration of the study is short & so the data collected may not be

Sufficient.

� The information is collected is only for with academic interest.

� Data for preparing this project report on organization study based on

Organization report & other secondary data not on the actual position.

However, I made sincere attempt to prepare this internship project report in

systematic manner.

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CHAPTER 6

“ANNEXURE”

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BALANCE SHEET AS AT MARCH 31, 2008 Sl. No. PARTICULARS

AS AT 31/03/2008

Rs. Rs.

AS AT 31/03/2007

Rs. Rs.

SOURCE OF

FUNDS

SHARE

HOLDER’S

FUNDS

A Capital 246636000 24663600

B-1 Reserves &

Surplus

243351936 489987936 183021666 429657666

DEFFERED

GOVERNMENT

GRANTS

60959631 111625048

LOAN FUNDS

C Unsecured Loans 149173673 149173673 158240085 158240085

DEFFERED

TAX LIABILITY

34700000 32700000

TOTAL 734821240 732222799

APPLICATION

OF FUNDS

FIXED ASSETS

D Gross Block 445230090 455333848

Less: Depreciation 160459442 151304484

Net Block 284770648 304029364

Capital Work in

Progress

4341722 289112370 0 304029364

E INVESTMENTS 0 0

CURRENT ASSETS,

LOANS &

ADVANCES.

F-1 Inventories 495583347 460502519

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F-2 Sundry Debtors

50908791 41085134

F-3 Cash & Bank

Balances

100261009

5

947358521

F-4 Other Current

Assets

53760216 33591455

F-5 Loans and

Advances

829675813

686601987

2432538626

2

2169139616

LESS:

CURRENT

LIABILITIES &

PROVISIONS

G Current Liabilities

183032648

7

157913805

5

H Provisions 163431710 175025023

175416307

8

NET CURRENT

ASSETS

438780065 414997653

8

Misc Expenditure

to the extent not

W/off

6928805

132168897

TOTAL

734821240 732

222

799

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PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2008

PARTICULARS 2007-08 2006-07

INCOME

I Sales & Commission 780046051 605661541

Y Increase / Decrease (-) of Stocks 37457542 2649225

* Capitalization of I.E Expenditure 2336197 5429357

J Industrial Estate Income 134242553 78341905

K Project Contract Income, Service charges, Sup

ergs & Grants

378625 1066880

L Interest on Deposits & Advances 95672285 69917857

M Other Income 34446297 13736921

TOTAL INCOME 1084579550 776803686

EX P E N D I T U R E

N Cost of sales, Operating Expenses 774959554 536206685

O Staff salaries & wages 90939191 90721311

P Staff Welfare expenses 16691065 15125269

Q Administrative expenses 14552472 14700040

R SSI Dev., Meetings, Seminars & Advt. 25392015 6903514

S Indl. Estates maintenance expenses 5734337 3357459

T Audit Fees & Other expenses 109888 132354

U Directors Remuneration & Other Expenses 594238 945686

V Interest on borrowings 578782 2419597

W Bad. Debts, Unrealized Income & Provisions 29039226 39792161

X Deprn. on Assets and Assets w/o 14071048 14167460

TOTAL E X P E N D I T U R E 972661816 724471536

PROFIT BEFORE EXTRA ORDINARY

ITEMS

111917734 52332150

COMPENSATION from NHAI for Land

Acquired

0 0

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PROFIT BEFORE TAX FOR THE YEAR 111917734 52332150

Less: a) Current Tax 38000000 28300000

Less:b)F B T 1100000 1000000

Less: c) Deferred Tax - Liability (Ref.Note 3 of

Sch AB)

2000000 1829239

PROFIT FOR THE YEAR AFTER TAX 70817734

21202911

Z

(-)

Add : Excess provision for Tax written

back(Net)/Refund of IT

Previous year tax provision

2878266

0

0

0

Add/(less) : Previous year income-Expenses

adjustments(Net)

1061860 2129631

PROFIT AFTER TAX INCLUDING

PREVIOUS YEARS ADJUSTMENTS

74757860 23332542

Add: Balance profit b/f from last year 113127626 95566124

BALANCE PROFIT AVAILABLE FOR

APPROPRIATION

187885486 118898666

APPROPRIATION:

Reserve for SSI Development 0 0

Reserve for Human Resource Development 0 0

Proposed Dividend 12331800 4932720

Tax on Distribution of Dividend 2095790 838320

BALANCE CARRIED TO BALANCE

SHEET

173457896 113127626

EARNINGS PER SHARE(E.P.S)(Ref.Note 27

of Sch AB

A)BASIC EPS 30.31 9.47

B)DILUTED EPS 30.31 9.47

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CHAPTER 7

“FINDINGS,SUGGESTIONS & RECOMMENDATIONS”

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FINDINGS:��

� Debts considered good & fully secured.

� Debts considered good for which company holds no security other than

Personal security of the Debtors.

� The company has not accumulated losses at the end of the financial year.

� By observing ne t profit of the company of previous years it’s a true sign for

KSSIDC marching towards the accomplishment of vision in an effective &

Efficient manner.

� KSSIDC also making effort to improve the sales performance, besides

identifying new areas for diversification of its activities.

SUGGESTIONS:

� Provide impetus to technology upgradation infrastructure by forging

symbiotic and mutually beneficial institutional arrangements between

Government Academic - R&D Institutions and Industry.

� Enhance value addition in products and processes through rapid technology

upgradation.

� Provide Industry access to high quality infrastructure

� Create a policy framework to facilitate competitiveness of local industry and

enabling ease of doing business;

� Enhance public and private expenditure to build efficient and competitive

Industrial infrastructure;

� Assist the tiny, small and medium scale industries to upgrade their

technologies and manufacturing processes to face the increasing competition.

� Enable industry to access new markets - domestic and export - through new

Products that meet global standards of quality and competitiveness.

� Try to get more monetary incentive from the Government then only possible

to reach the vision within a span of time.

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� Try to improve Maintenance activities of industrial plots by using adopting

high level technology in a very systematic manner.

� Bidding system in Industrial property is to be continued to augment the

resources in better way.

RECOMMENDATIONS:

As we know , very well that success is not a an overnight performance, it

takes a long period, such things can be targeted & aimed properly when one can

rectify his mistakes certifying his conduct, justify his expense & magnify his

vision. Avoids such mistakes & takes decisions for future &growth of the

company will run précised & perfect way.

� Apart from dealing only one industrial Raw Material the company can

explore the possibilities of marketing other products required by SSI Units,

so as to provide materials to other units as well & improve the Company’s

turnover rate gradually.

� Net profit of the company will be increased in the year 2007-08

to compare with the previous year. But it is quite low to the company. Hence,

the company as to reduce the operating expenses & increases the Net Profit

of the company.

� The company tries to get maximum funds from the State

Government as well as Central Government in order to meet challenges of

global millennium.

� Sales activities of the company will be very low & to take

necessary action to overcome this type of problem.

� The company should change its Credit Policy & expedite the

collection of

due Debts.

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CONCLUSION:

Karnataka is a developing State marching towards its development in

order to push our Karnataka to developed State so that development of Small

Scale Industries is much more essential. Then only possible to see over all

balanced development of our State.

Fully tap the potential of the Small Scale Sector to encourage the

establishment of new tiny & Small Scale industries, particularly in the rural

areas, to effective utilization of available resources in a efficient manner.

Last but certainly not the least as we know India is suffering from the

problem of over-population can be solved in two ways, viz.

� By checking the growth of the population.

� By improving the economic development of the country.

Improvement of the economy is synonymous with industrial development.

So, Industrial development is one of the means of controlling the problem of

over population of our country.

In such a scenario KSSIDC contributes vital role in development of our state

right from providing land & Industrial Sheds, to assisting with managerial &

technical support, to sourcing of raw materials. & creating interest to the

entrepreneurs to start up new kind & highly advanced industrial activities &

also creating more number of employment opportunities to new entrepreneurs.

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BIBLIOGRAPHY

www.kssidc.kar.nic.in

www.google.com

Annual report

Journals

Broachers

Final Project for Submisiion

Documents

Transcript of Final Project for Submisiion