KEC Unit 2. HUBLI
INTRODUCTION
1FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
EXECUTIVE SUMMARY
Working capital management is one of the most important aspects of financial management.
Every company requires management of its working capital to run its business smoothly and
successfully. Proper management of working capital is necessary to maintain both liquidity and
profitability of a company .The working capital management involves deciding upon the amount
and the composition of current assests and how to finance these assests.working capital
management has become an important tool to judge the performance of a business.
Kirloskar electric company limited unit 2 was established in 1976 and ever since has maintained
its undisputed position as a market leader.
The key benefit of the study is to get knowledge of correct and appropriate measures of
evaluating the working capital management and the application of different outcomes regarding
the ratio relating to working capital in the company. And the different measures to be taken for
the proper outcomes. The study also helps in finding out the capital management patterns in the
management of cash, management of accounts receivables, and the management of the
inventories of the company and the different aspects involved in the working capital
management of kirloskar electric company limited unit 2.,.
2FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
INTRODUCTION
I studied the Unit 2nd of KEC at Hubli it would be better if we are well informed about the
Kirloskar group of industry.
It was establishment of Kirloskar group of co’s made a very good significant change in the
history of Indian electric industry , Even Mr.Laxman Rao Kirloskar founder of the group
probably would not have dreamt about the group would grow to this large extent in such a
fashion .
Founder Mr.Laxman Rao kirloskar strongly believe that ‘’Co’s progress was determined by the
integration of man and his intellect with technological growth and environment ‘’. His belief
paid him of in such a manner that the group ranks in the top 20 industries in India.
The very first product of Kirloskar was the ‘’Iron plough “which was must ahead of its time. The
design being done with the customer in mind Kirloskar become to be known as the other name
for the product.
Since from its first product the group showed its commitment to continues innovation , quality ,
continuing technology and advancement the group still has the same as its ‘’Golden Rule “ .
3FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
RESEARCH AND METHODOLOGY
4FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
RESEARCH METHODOLOGY
Methodology aims to the present a clear idea of the research procedure used in this study, since the valve of systematic and scientific research lies in Methodology the goals should be reached with accuracy using least amt of time.
The method employed in the budget for collection and analysis of the information is the primary source and secondary.
Primary:-
• Observation method :-
By Observation the various steps in the work of the dept the data collected and also glancing over the task performed by the employees during the working hours .
Secondary source:-
Magazines, company profiles, Reports, etc.
5FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
MILESTONES IN THE HISTORY OF KEC
1946 ---- KEC established at Bangalore.
1948 ---- A new era opens for Indian K.E.C produces the country’s very first AC
motors
1954 ---- Impatient for progress, the company gets into product diversification producing
its first transformers.
1956 ---- First transformer manufactured.
1958 --- A critical power situation inspires production of the country’s first
transformers.
1963 ---- The patient of breakdown continues. DC motors and DC generators roll off the
assembly line.
1965 ---- Market demand increases. India’s first motorized gear unit joins the K.E.C
product range.
1966 ---- Intensive research and development sets the pace for production of the first
induction heating equipment.
1973 ---- First oversees office at Malaysia.
1976 ---- Office at Nairobi established
1982 ---- New collaborations. Better products. Thyristor, Converters, made in
collaboration with Thorn EMI, U.K.
1987 ---- Introduction of CNC systems and factory automation.
1989 ---- More collaboration. More products. With Fuji of Japan for investors and with
Toshiba of Japan for UPS
1991 ----Toyo Denki collaboration for motors and generators up to 10MW/ MVA.
Production of technologically advanced large DC motors and large AC machines in
collaboration with AEG Daimler Benz of Germany up to 20MW
1992 ---- The company starts production of Hi- Tech CRT based CNC systems.
1993 ---- Kirloskar Electric becomes the first company in India to receive ISO 9001
certification for its entire product range and for all its manufacturing units.
6FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
1995 ---- Took over Voltas Transformer and started manufacturing plant at Tumkur for
Manufacturing units
1996 ---- Celebrated Golden jubilee and started manufacture of wind turbine.
2001 ---- Company restructure.
2002 ---- First test lab was started at Tumkur.
2003 ---- Received NVLAP certificate test lab.
2004 ---- Customer Excellence Certificate.
7FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
K.E.C. UNITS
Units Place Products
Unit - 1 Bangalore AC motors, AC generators, motorized gear units.
Unit – 2 Hubli AC motors, AC generators, motorized gear units.
Unit – 3
Recently
Closed
Peenya DC motors, generators, traction.
Unit -4 Mysore • Industrial electronic group- thyristor devices,
static invertors, UPS systems.
• Factory automation group- digital readouts,
CNC systems, Servo drives and induction
heaters.
Unit – 5
Recently
Closed
Bangalore Transformers.
Unit – 6 Pune Automation electric equipments, small range
induction motors and alternators up to 5 HP.
Unit – 7 Tumkur Stampings, Die cast rotors/ bodies and coils.
8FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Unit – 8 Pune Cast resin, transformers, and oil filled transformers.
9FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
ORGANISATION SET UP OF KEC
Board of Directors manages KEC Unit II. Mr. Vijay Kirloskar is the Managing Director and
Chairman. Under the managing director, there is an Executive Vice- President. A chief
executive manages each of this unit.
BOARD OF DIRECTORS
Vijay Kirloskar : Chairman and Managing Director
Agarwal. S.N : Director
Anil Kumar Bhandari : Director
Sarosh. J. Ghandy : Director
Mythili BAL Subramanian : IDBI Nominee
Ramesh. D. Damle : LIC Nominee
Malik. P.S : Dy. Managing Director
Venkatesh Murthy. D.R : Director Sales & Marketing
Company Secretary : P. Y. Mahajan
Auditors : B.K.Ramdhyani & co. Bangalore
10FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
BANKERS
• Bank of Baroda
• Bank of India
• State bank of India
• State bank of Mysore
• State bank of Travancore
• Standard Chartered Bank
• The Hong Kong & Shanghai Banking Corp.
REGISTERED OFFICE
Industrial Suburb, Rajajinagar
Bangalore – 560010
11FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
FACTORIES
Belvadi Industrial Area, Mysore
• Gokul Road, Hubli
• Hirehalli, Tumkur. QUALITY POLICY
The quality price of KEC shall be to design, manufacture and market at competitive
prices, products of such quality, which results in customer satisfaction, quality reputation and
market leadership.
MISSION
• To remain a leading producer of electrical technology products in India.
• To continuously grow in our business and become a significant player in the world
market.
• To maximize return on investment.
• To achieve international levels of excellence in technology and quality.
VALUES
• Products of highest technology and quality.
• Customer orientation
• Teamwork among our people.
• Profits for growth
12FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
GUIDING PRINCIPLES
• Innovate continuously to excel in design and manufacturing.
• Development products required by market.
• Manufacture products of highest quality
• Focus on customer in all actions.
• Respond promptly to customer needs.
• Deliver supplies on time every time.
• Treat each other with trust and respect to build a team.
• Develop people by training and delegation.
• Adopt process-oriented thinking, continuous improvement, and management by facts
priority.
• Reduce costs constantly to remain competitive.
• Earn enough profits to fund growth and diversification.
• Offer goods and services at competitive prices.
• Look upon dealers, suppliers and business associates as partners.
• Maintain safe, clean and healthy environment.
• Conduct business in a socially responsible manner.
13FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
HOD’S OF KIRLOSKAR ELECTRIC CO.LIMITED,
UNIT-II
CEO - K.S.S.PANIKAR
PERSONNEL - U.PARAMESHWARA
PRODUCTION - A.B.JOSHI (SHOP III),
- D.S.WODEYAR (SHOP III),
FINANCE - K.SHRIDHAR
MARKETING - V.RAMPRASAD
ENGINEERING - D.A.DESAI
MMD - ASHOK KADAKOLI
MED & MSD - S.V.PUROHIT
14FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
CEN.PLANNING - A.B.JOSHI
DEPARTMENT
STUDY
15FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
ORGANISATION STRUCTURE OF KEC UNIT IIPersonnel Department
(Senior Manager)
HUBLI
16FATIMA DEGREE COLLEGE (BBA), HUBLI
Chief Executive
Deputy General Manager
Production Department
(Senior Manager)
Finance Department
(Senior
Manager)
Central Planning
(Assistant Manager)
Stores
(junior Manager)
Engineering Department
(Senior Manager)
Quality Assurance Department
(Senior Manager)
Marketing
(Deputy Manager)
M.M.D
(Assistant Manager)Person
nel Department
KEC Unit 2. HUBLI
MANPOWER IN KEC UNIT-II
AS on 01-05-2007
Table: 1
Human Resource Total Members
Daily rated employees (DRE’s) From grade 1 to 8
432
Monthly rated employees (MRE’s) From grade 1 to 7
45
Officers, Engineers and above From grade 8 to 16
85
Total 562
Besides these permanent employees, around 81 trainees are recruited and contract Labour are
hired only for some specific purposes and in never employed in production or feeder shops.
Officer’s cadre is divided into 2 categories.
• Junior officers from the grade from 5 to 7
• Junior officer 1: Grade 5
• Junior officer 2: Grade 6
• Junior officer 3: Grade 7
2. Senior officers from the grade from 8 to 9
Officer: Grade 8
Senior Officer: Grade 9
17FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
The manager cadre is classified as follows from grade 10 to 16
Assistant Manager - Grade 10
Deputy Manager - Grade 11
Manager - Grade 12
Deputy Senior Manager - Grade 13
Senior manager - Grade 14
Deputy General Manager - Grade 15
General Manager - Grade 16
18FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
PRODUCT PROFILE
AC Generator AC motor
`
DC Motor Traction Equipment
We design and manufacture our products according to the standards of :
• ISO (International Organization for Standardization)
• IEC (International Electro technical Commission)
• BIS (Bureau of Indian Standards)
• BSI (British Standards Institution)
• JEM(Japan Electrical Manufactures Association)
19FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
PERSONNEL DEPARTMENT
K.E.C, company recognizes its employees as its most important asset for its continued growth.
Human resources management in Kirloskar Electric Company shall striver to ensure continuous
organizational growth by nurturing the strengths of its employees and providing the environment
and opportunity for every individual to rise to his/her highest potential, identity and achieve
his/her personal goal within the framework of organizational, social and natural objectives. To
achieve this following sections are formed to perform the various functions including, Positive
Motivation, Preparation and maintenance of quality plans with aid of systems, procedures and
work instructions published collectively in quality manuals.
Scope: Personnel Department is applicable to personal welfare safety and security.
Responsibility of Personnel Department :
Implementation and maintenance of various functions is the responsibilities of the Head of
Department (HOD) with appropriate duties assigned to section in charges (SIC) and staff.
Functions:
The Main functions of Personnel Department are:
HOD-PERSONAL AND INDUSTRIAL RELATIONS:
• To ensure that harmonious relations exists between workers and management
• To ensure safe working conditions and to provide safety equipments.
• To Co-ordinate security and vigilance activities
• Manpower planning accountability.
20FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
ORGANISATIONAL CHART OF PERSONNEL DEPARTMENT
MARKETING DEPARTMENTSuccess of any product totally depends on HO it is marked and positioned din the market.
Marketing department is one of the important functional divisions of KEC UNIT-II, which is
basically, identifies and meets the needs of customers profitably. The people in the marketing
department are responsible for the growth of a business concern because they come in direct
contact with the customers who now are considered as King of the market as it is a buyer’s
market and no more a seller’s market.
21FATIMA DEGREE COLLEGE (BBA), HUBLI
HOD
SIC TRAINING IN CHARGE
CANTEEN
DEPARTMENT ASSISTANT
SECURITY OFFICER
WELFARE OFFICER
IND.REL OFFICER
AMBULANCE ROOM
TIME OFFICE I.C
KEC Unit 2. HUBLI
As marketing departments basic principle is to take care of the customers to achieve way
they have divided their department in to their sections such as:
• Marketing
• Customer Service
• Communication
Marketing is further having its subgroups i.e. technical group, which does the job of tendering or
equally handling Execution, is planning group.
The network of marketing department has all over India at 28 branches known as sales
office/branches.
The function of this division in K.E.C UNIT-II starts to determine the needs of the customers
their documents concurrently then accurately to communicate then to various departments.
22FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Marketing:-
When a branch office in any part of its network receives an order in case of special product (i.e.
as per customer requirements) it sends an order acceptance copy i.e. duly verified by the sales
engineering of that branch to the tendering group where this OA copy is examined and sent to
planning department and further forwarded engineering department for design and development
of special product who prepares its engineering
Specification and sends it to the purchase department if any new or additional components are
regard to the production department. The marketing department based on the demand contacts
the materials management department issues materials on the amount and the type of material,
which required. Based on the amount required the department based on the demand contacts the
materials management department issued materials on the amount required the production
scheduling, routing and the like has to be carried out.
K.E.C UNIT-II is planning turnover is 100 crores for last year achieved to the 84 crore.
This planning for turnover is 110 crores.
AC-Generator Marketing:-
In case of AC-Generator the final customer is directly purchase through Manufacture of
Branch office or Dealer.
The O.E.M. (Original Equipment Manufacturer) who in turn places the purchase order to
the branch office, the order acceptance form along with desired specifications is studied.
Carefully in the marketing department and if found possible for production is immediately
informed to the O.E.M the information is also forwarded to the production units
23FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
AC Motor Marketing:-
The customer decided the rating of a motor required and approaches to the dealer, the
dealer in turn acceptance and passes it on to the branch office which prepares an order
acceptance and passes to customers and another to the unit of the production otherwise customer
is directly contact through the marketing department.
The order acceptance is then separated into the one for standard products and other for special
products. The special products requirements have to be discussed with the engineering
department and then accepted.
CREDIT POLICY:
Generally K.E.C-II does not follow the policy. But sometimes the credit is issued to a
particular customer depending on the volume of the purchase, the type of a customer K.E.C
UNIT-II has a credit policy extending to a maximum of 30 days.
Objectives:
The objectives of marketing department are to achieve customer satisfaction with quality
products, price, and delivery in time, and presale service after sale service, maintain brand image
and earn profit for further diversification.
COMPETITIORS
• Organized sector
• BHEL
• ASEA
• Crompton Greaves Ltd.
• Bharat Bijli ltd.
• Asian Brawn Boweri Ltd (ABB Ltd.)
• General Electrical Company Ltd.
• Jyoti Ltd.
24FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Unorganized Sector:
• Mainly cottage industries.
Direct Customers.
• OEM’s (Original Equipment Manufacturer’s)
• OEA’s (Original Equipment Assembler’s)
• Government organization (Railway, Airports)
• Indian Defense
• Indian Railways
• Other Industries
25FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
• ORGANISATION CHART OF MARKETING
26FATIMA DEGREE COLLEGE (BBA), HUBLI
GROUP ACM SIC WEST AND EAST JMU
SIC NORTH AND SOUTH RNA
SIC PING & EXECN RPK
FIC GKN
SIC AKN
SIC PING & EXEN SGM
GROUP ACG
HOD MARKETING
KEC Unit 2. HUBLI
MATERIAL MANAGEMENT DEPARTMENTObjectives:
To provide components can service for manufacturing as required by others functional
divisions.
Scope:
• To plan and procure materials confirming to specifications through adequate selection of
sub contractor.
• To feed the materials to the production division at required schedules at an economic
cost.
Functions:-
• Work out material requirement based on sales requisite plan (SRP), Sales constancy plan
(SCP) and Critical credit requirement (CCR)
• To exercise purchase order as per procedure.
• To plan for non-production item based on purchase requisitions to materials management
division.
• To finalize terms of purchase.
Job Description and Responsibility
• To maintain and direct the organization, which is adequate to perform material
management functions.
• To define the duties and responsibilities of MMD and to ensure that they carried out
effectively.
• To plan for realistic purchase budget.
• To manage obsolete surplus and scrap material.
27FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
SIC’S:
• To plan the material requirement
• To order material and on approved suppliers and supply in the quantity necessary to
satisfy marketing requirement.
• To monitor the material recipient as per delivery schedule indicated in purchase order and
co-coordinating with supplier.
• To monitor the material release for production in accordance with SRP/SCP/CCP.
FIC’S
• To plan the materials requirement.
• To order material and on approved supplied and supply in the quantity necessary to
satisfy marketing requirement.
• To monitor the material release for production in accordance with SRP/SCP/CCP
• To follow with supplier for supplier for supplying, required material at required time of
manufacturing.
• To keep the manufacturing division and other functional divisions other than the
manufacturing informed of related activities to facilitate overall coordination related
activities include information regarding material availability supplier training programs
reasoning for user training for supplier products etc.
• To determine the need of stock replacement through use of daily material receipt
perpetual inventory.
• To monitor and reconcile materials issued to suppliers.
28FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
ORGANIZATION CHART OF MMD
FINANCE DEPARTMENT
Finance department is the blood of any business organization to survive. Any organization
handicapped by finance will never complete an ultimately results in failure and a burden to
economy. Finance department is concerned with planning and controlling of company financial
resources.
The company policy is formulated and credit worthiness of the customer is evaluated audits such
as cash audit, internal audit, cost audit is done per month. In the finance department of KEC
UNIT-II, there are 26 staff members contributing towards the effective functioning of the
department.
29FATIMA DEGREE COLLEGE (BBA), HUBLI
CEO HOD MMD
ACM S3 SIC SHOP3
OFFICE ASSISTANT
SIC SHOP V ACG
FIC EXECUTIVE SHOPS
KEC Unit 2. HUBLI
ORGANISATIONAL HIERARCHY OF FINANCE DEPARTMENT
KEC UNIT-II, is characterized by the fact that all the collaboration are sent to corporate office at
Bangalore and the expenditure of the particular day are sent to the unit as per the requirement of
the units.
30FATIMA DEGREE COLLEGE (BBA), HUBLI
CORPORATE FINANCE
CHIEF EXECUTIVE
GRADE 8 AND ABOVE
M.R.E’s up to GRADE 7
KEC Unit 2. HUBLI
FUNCTIONS:-
FINANCING FUNCTIONS
It includes cash payments, receipts, bank receipts and payments.
CREDIT MANAGEMENT:
Due to the competition, now a day’s credit is a means to achieve the target without credit sale
any organizational can fulfill their targets.
COSTING
Costing relates to calculation of production cost per unit and it tries to minimize the cost of
production and helps in the function of pricing with marketing department.
AUDITS:-
Audit is a way to confirm about the accountancy of the functions and records of all over
activities. It has employed cost Audit and Internal Audit etc.
RECORDING AND MAINTAINING OF ACCOUNTS:-
These are the present and future reference of the company’s financial position. These are useful
for Shareholders, Creditors, Suppliers, and Bankers etc.
31FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
BANKERS OF K.E.C UNIT-II
K.E.C UNIT-II has the following Bankers:
1. Bank of Baroda
2. Bank of India
3. Canara Bank
4. Hong Kong Bank
5. State Bank of India
6. State Bank of Mysore.
Financial Institutions:
Following are the financial Institutions of K.E.C UNIT-II:
• Industrial Credit & Investment Corporation of India (ICICI)
• Industrial Development Bank of India (IDBI)
• Unit Trust of India (UTI)
K.E.C UNIT-II production per month is worth 10 crores. But now it attempting to rise to
Rs 11 to 11.5 crores, the raw materials is steel and copper. These are procured from steel
Authority of India Ltd., and Hindustan Copper Ltd. 1% of the total turnover is used for
welfare expenses and 6% of total turnover is used for salary or expenditure.
On an average the KEC Unit-II is paying Rs.150 lakhs as excise duty/month, 6% of total
turnover is given as salary and 1% of the total turnover is spent on welfare activities. The method
of depreciation followed is straight-line method. The company has adopted FIFO method for
costing.
32FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Listing on Stock exchanges:
• Bangalore Stock Exchange Ltd., (KIRELECRRI)
• Madras Stock Exchange Ltd.(KRL)
ENGINEERING DEPARTMENT
Quality Policy of Engineering:
The quality policy of K.E.C UNIT-II shall be continuously improving the quality
management system in design, manufacture, market and service at competitive prices. Product of
such quality, resulting in customer satisfaction, quality, reputation and market leadership, The
role of engineering department is to design and develop products and components taking into
consideration the cost, product ability, usability, and maintenance of the product.
Scope :
Applicable to quality objectives identified for improvement in design and development of
products manufactured in KEC UNIT-II.
Responsibility:
The head of the engineering department is responsible for receiving the objectives.
33FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Procedure:
Objectives shall be derived from the organizational quality policy and need to meet
customer and product requirement.
Quality objectives by engineering department will lead to
• Simplification in design
• Standardization of components
• Reduction in reworking of design
• Reduction cost of production.
• For achieving or reworking quality objectives appropriate statistical quality control
technique shall be used.
Functions:
• Preparation revision and release of engineering and electrical specifications.
• Preparation, revision and control of drawings and release of material risk.
• Validation of design of products.
• Effective implementation of the design changes.
34FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
PRODUCTION DEPARTMENT
In many manufacturing unit production department forms the most important department
of all the whole running of the unit depends upon this department the proper and timely
functioning of this department helps in products reaching the customers end at right time. Slight
difference in timing and quality upsets the cycle. Thus the production department we can say is
the heart of the firm.
K.E.C UNIT-II philosophy has always been to excel in what one knows best in the
process of development. KEC UNIT-II has laid great emphasis on adopting technology to suit
the environment in which it has to operate K.E.C UNIT-II’s production process are continuously
of upgraded from time to time by the latest technology.
Objectives:
• To follow up the production schedule as per the plan.
• To maintain the close and coordinated relationship with other department.
• To upgrade technical efficiency of production.
K.E.C UNIT-II there is six shops in this department all of which have got different
functions to perform. The product moves from first to sixth shop and then to the dispatch.
H.O.D Production heads the production department with a total shop of 600.
The whole shop is divided into among six shops.
The department is divided into 2 groups.
• Feeder shop (Shop I and Shop II)
• Assembly Shop (Shop III and Shop V)
• Shop IV is used as Research and Development Center is also called as
“Invotech Center” and Shop VI is painting section.
35FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Brief description of shops:
SHOP I:
The matching functions are carried out in this shop which has 5 lines engaged in
production namely welding section, sub assembly, labor section, tools and jigs crib and tool
room.
There are totally 80 machines and 100 workers in shop I. The raw materials arrived in
this shop where the metal drilling, milling and shaft fixing is done and sent to the next process.
The winding are also done in the shop I.
Here the process of Bodies – KH 100 to LD 225 frames.
Covers – KH 63 to LD 225 frame.
Shaft – KH 63 to LD 180 frame.
Gear cases – MGH 100 to MGH 225 frame.
Gears/pinions for Geared motors are done and also undertake manufacturing JIGS and
FIXTURES and DIE-CASTING dies.
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KEC Unit 2. HUBLI
ROTOR SUB ASSEMBLY:
Rotor is the static part in the ACM’s and dynamic that is moving in the ACG’s. The rotor
goes through the following process.
1) Sinking:
The roots are treated in the solution for convenience of inserting the shaft so that they
expand and make it easy for insertion of the shaft.
2) Turning:
The correct turning and made according to the specification.
3) Fan Shop Drilling:
This is the process where in the fan is to be fixed and for this purpose drilling is done and
then locks are fixed for safety.
4) Balancing:
This step involves balancing the rotor properly.
WINDING:
Winding is the most important functional part of the machine. It has to be done manually
and precisely. This is the only process, which is totally manual. The motor is wound with correct
rating wires.
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KEC Unit 2. HUBLI
SHOP II
Shop II is die cast shop. Here in this shop only die-casting is done. That is the shapes of
body and nameplates final shape. The shop II has two machines, one for nameplate pressing and
another for body.
It houses the router section, here stampings are received and die casting of the metal
stamping is carried in a furnace heated at 675 degrees Celsius 755 degree Celsius
ROTOR SECTION:
Here processing of rotor sub assembling for KH 63 to 180 frames, SD 71 flange machine
is undertaken.
DIE-CASTING SECTION :
Here die-casting for motor for 63 to 225 frame motors and die-casting of bodies, flanges,
covers, and terminal boxes from KH 63 to 10 frames.
SHOP-III
This shop can be called as assembly shop because the products here will get upto 90%
only, final finishing will be at this stage.
The assembling of motors of the frame size motors are assembled in this shop in three
different assembly lines namely:
• The non-standard line for custom mode and is operated manually.
• The standard line for this standard motor is also called verticals assembly line where the
motors are assembled mechanically by various stations in the machines acquired for the
specific purposes.
38FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
• The export line is where the motors have to be exported assembled with due care and is
done manually. After assembling the motors they are sent to the painting section, which
is housed in the same shop.
SHOP IV:
It works as research and development center for the company. It keeps its eye on the
changes that are taking place in the electrical world and tries to adopt those changes in their
manufacturing process. So it acts as research and development in the company
SHOP V:
Here assembling of medium and large motors generators and MGU’s under separate bays
like ACM bay, ACG bay and MGUU bay.
Product Rating
A.C Motors Frame 200 to 225 15 KW to 75 K W
A.C Generator Frame and
180 & 250
DS-DL-CMA 2.5KVA to 90KVA
Motorized gear units 90 to 225 0.75 KW to 22 KW
Painting and testing is also done here.
39FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
SHOP VI :
In this section, components used in the motors are pre treated and painted.
K.E.C UNIT-II has to its credit the pioneering of the latest technology called “Unibake”
system. Earlier this system was applied to all the products but recently it has been restricted only
for export orders. The domestic products are painted in conventional manner.
ORGANISATION CHART OF FEEDER SHOPS
K.E.C has its corporate and marketing office at Bangalore. National Offices are divided into 4
zones.
1. North Zone : Delhi, Ludhiana, and Jaipur
2. East Zone : Kolkata, Jamshedpur, Guwahati, Bhubaneshwar and Ranchi.
3. West Zone : Mumbai, Nagpur, Pune, Ahmedabad, Surat and Indore.
40FATIMA DEGREE COLLEGE (BBA), HUBLI
CEO
HOD Production
SIC – FEEDER SHOPS
FIC, T ROOM AND T CRIB
FIC, Shaft Body
FIC DIE CASTING
FIC SHOP6
KEC Unit 2. HUBLI
4. South Zone : Chennai, Coimbatore, Cochin, Hyderabad, Bangalore, Belgaum,
Pondicherry
QUALITY ASSURANCE
Quality is the fitness to end-use, it is all persuasive. In this modern and competitive world each and every company is trying hard to introduce to quality and every defect free product K.E.C has a full fledge quality assurance department headed by highly qualified professionals committed to developing products that keep phase with the changing desires and needs of the consumers. Quality plays important role in K.E.C UNIT-II because its products are used for industrial customer applications. Hence it must satisfy and come up to the customer expectations.
Objective:
The role of QA division is to assist all functional division in achieving and maintaining
level of specified quality requirement economically.
This unit being ISO-9001, certified unit, has to follow the stringent quality specification.
This department facilitates the total quality management (TQM) in all the departments, by
adopting process controls at all stages.
The quality assurance department follows a definite set of systems and procedures, which
are incorporated in the manuals. The manuals are drafted to the lines of the standards as specified
by the ISO-9000 series of clause for quality documentation.
41FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Functions:
The functional responsibilities of different sections of QA divisions are as follows:
• Releasing of accepted products for further process.
• Evaluating quality rating of suppliers.
• Generation of NC reports for analysis/ review and initiating corrective action and
preventive action.
• Quality information and reporting.
• Maintaining documents and records as per procedures.
FEEDER SHOPS QA:
Feeder shops QA is responsible for
• Inspection/ Testing of parts, sub assembly as per appropriate quality plan/ documents
procedures/ inspection plans other documents.
• Ensuring proper identification and inspection status.
• Updating, revising inspection plans procedure as and when found necessary.
• Generation of Non-conformance reports for analysis, revive and collective action,
preventive action.
• Ensuring that calibrated instruments are used for measurements and coordinating with
calibration section for periodic calibration.
42FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
FINAL INSPECTION AND TESTING:
Conduction routing/ type/ engineering tests on products to specified requirements as per
documented procedures:
• Maintaining test records and providing test certificates.
• Ensuring tested products and conforming to specified requirements and complete in all
respects.
• Providing inspection/ tests stating for confirming products.
• Providing engineering test results for design modification where necessary.
• Assisting in customer inspection.
QUALITY LABORATORY:
• Periodic calibration of instruments as per documented process.
• Arranging for repair/ rectification/ disposal of measuring instruments.
• Planning for new instruments/ organizing calibration function from external agencies.
• Maintaining documents/ records as per procedures.
QUALITY SYSTEMS:
• Maintaining quality systems as per ISO 9001-2000
• Assisting HOD QA for conduction quality related training programs
• Analysis and reporting of customer complaints internal non-conformance reports.
• Conducting systems audits, monitoring corrective actions, preventive actions.
• Implementing of corrective actions and preventive actions.
43FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
COMPUTER DIVISIONWe are into technology revolution where process and manual jobs have been atomized or
computerized. So getting along with revolution K.E.C UNIT-II has also steeped into the field of
computers and has computerized its various departments of the unit.
Objective:
The computer division is responsible for software developments, maintenance of
computer hardware accessories, using appropriate methods.
Scope:
This is applicable to all the functions performed by the computer divisions of K.E.C
UNIT-II, Hubli.
The head of computer division has overall responsibility and delegate works to other staff
as appropriate.
FUNCTIONS:
• Maintenance of computer hardware accessories :
User department raises requisition for hardware breakdown. The call is attended enclosed
after acknowledge for the user.
• Preventive maintenance of computers and accessories :
Preventive maintenance is carried out for computer hardware every half yearly and every
quarterly and updated in the history card. This activity is acknowledged with the preventive
maintenance sticker and stuck on the computer accessories
.
44FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
• Software Revalidation :
Software revalidation is done annually as per the procedure defined in software
revalidation and records are maintained.
• Back – Ups:
Regular backup is ensured department wise as per the procedure defined.
• Document Control:
Records files are updated and maintained in the document control register.
GENERAL FUNCTIONS:
Computer department works as a supporting device for all department and all the
functional activities like payroll preparation and accounts receivables management is done with
the help of computer department. In production field, it will help in planning, investment
management etc. The company also has CMAN and ERP procedure to strengthen their
production activities.
45FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
ORGANIZATION OF COMPUTER DEPARTMENT
46FATIMA DEGREE COLLEGE (BBA), HUBLI
SIC-Software Development/Revalidation Maintenance
SIC-Software Development/modification/Hardware/Backup
FIC-Hardware/Electrical Maintenance
FIC-
Software Development/Maintenance
KEC Unit 2. HUBLI
CENTRAL PLANNINGObjective:
To describe the quality management system process & procedures followed in production
department.
Scope:
• Applicable to Central Planning Department.
• To demonstrate product manufactured meets requirements by following applicable
process.
• For effective application, implementation, continued improvement in the different areas
of work.
Approach:
Activities in the department are carried out with required resources. Resources include
Building, Personnel, Manufacturing equipments, Test equipment etc. the available resources are
managed to make quality products. The department, Organization, Process & Other activities
followed for QMS requirements is given.
Functions:
• Release of material against SR/SCP to all departments.
• Plan on basis of material availability.
• Sub-contract is given.
• Re-planning of material against the non-conformance.
• Maintain of product identification and tractability.
• Corrective action.
• Maintain quality records.
47FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
ORGANISATION CHART OF CENTRAL PLANNING
48FATIMA DEGREE COLLEGE (BBA), HUBLI
CEO
HOD CP
SIC-Planning SIC-component manufacturing/sub contract FIC
FIC-Assembly planning
FIC-Die-casting& Rotor sub- assembly
FUC-Sub contract
FIC-Records
KEC Unit 2. HUBLI
MANUFACTURING ENGINEERING DEPARTMENT(MED)
Functions:• Preparation general assembly drawings of jigs, fixtures, dies, tooling, storage devices &
gauges.
• Recession of drawing with design changes.
• Coordinating with production for finalizing the manufacturing process.
• Preparation of process sheets.
Job Responsibilities: HOD
• Overall administration of MED.
• Development around organization to achieve the required objectives of the department.
• Coordinate with other department to carry out the department activities.
• Monitor the activities of the department through proper documentation.
• Planning & procurement of Capital equipment.
• Establish quality objective for the department function.
• Design of jigs/ fixtures/ tooling.
• Determining and defining of process for manufacturing activities process sheets.
• Assisting process determination at supplier for component machining activities & release
of process sheets wherever required.
• Organizing for procurement of capital required for manufacturing activities.
49FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
ORGANISATIONAL CHART OF MED
GENERAL STORES
To describe the process and procedure followed in stores department. A guide for
effective,
50FATIMA DEGREE COLLEGE (BBA), HUBLI
CEO
HOD MED
SIC MED
FIC
Jigs/Fixtures/Dies & Tooling &
Preparation & Release of Process Sheets
KEC Unit 2. HUBLI
ORGANIZATION CHART OF STORES
Objective:
The role of stores is to maintain accountability of the materials received, stored and
issued as per the specified requirements.
Scope:
Applicable to stores activities.
Responsibility:
The head of stores division is responsible for overall function of the stores with duties
delegated to SIC/FIC as applicable.
Functions:
• Receive material as per delivery Chilean/ Invoice/ Credit Reports.
• Ensure identification, inspection status, and supplier identification on the components
vendor code/ material code in the delivery Challan/ invoice.
DUTIES AND RESPONSIBILITIES OF HOD:
• Overall administration of stores.
• Establishment of inventory norms & controls.
• Establishing & maintaining quality systems in stores division.
51FATIMA DEGREE COLLEGE (BBA), HUBLI
CEO HOD Stores SIC Stores
KEC Unit 2. HUBLI
DUTIES & RESPONSIBILITIES OF SIC STORES:
• Overall administration of stores.
• Ensuring that all components / products received in stores are inspected and tested as per
the applicable specification/procedures.
• Ensure receipt, storage & issue of materials.
DUTIES AND RESPONSIBILITIES OF FIC STORES
• Receive and stores materials as per delivery Challan/ Invoice/ Audit reports.
• Ensure identification & inspection status for the components/ products.
• Preparation of receipt memos.
• Storing of outstanding in specified areas like mobile racks/ pallets etc.,
• Issue of materials to shops/ suppliers as per indents
52FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
INTRODUCTION TO WORKING CAPITAL
53FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
WHAT IS WORKING CAPITAL?
Working capital refers to the investment by the company in short terms assets such as cash,
marketable securities. Net current assets or net working capital refers to the current assets less
current liabilities.
Symbolically, it means, Net Current Assets = Current Assets Current Liabilities.
DEFINITIONS OF WORKING CAPITAL:
The following are the most important definitions of Working capital:
1) Working capital is the difference between the inflow and outflow of funds. In other words it is
the net cash inflow.
2) Working capital represents the total of all current assets. In other words it is the Gross
working capital, it is also known as Circulating capital or Current capital for current assets are
rotating in their nature.
3) Working capital is defined as the excess of current assets over current liabilities and
provisions. In other words it is the Net Current Assets or Net Working Capital.
54FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Importance of working capital
Working capital may be regarded as the lifeblood of the business. Without insufficient working
capital, any business organization cannot run smoothly or successfully in the business the
Working capital is comparable to the blood of the human body. Therefore the study of working
capital is of major importance to the internal and external analysis because of its close
relationship with the current day to day operations of a business. The inadequacy or
mismanagement of working capital is the leading cause of business failures. To meet the current
requirements of a business enterprise such as the purchases of services, raw materials etc.
working capital is essential. It is also pointed out that working capital is nothing but one segment
of the capital structure of a business. In short, the cash and credit in the business, is comparable
to the blood in the human body like finances life and strength i.e. profit of solvency to the
business enterprise. Financial management is called upon to maintain always the right cash
balance so that flow of fund is maintained at a desirable speed not allowing slow down. Thus
enterprise can have a balance between liquidity and profitability. Therefore the management of
working capital is essential in each and every activity.
55FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
WORKING CAPITAL MANAGEMENT
INTRODUCTION:
Working Capital is the key difference between the long term financial management and short
term financial management in terms of the timing of cash Long term finance involves the cash
flow over the extended period of time i.e. 5 to 15 years, while short term financial decisions
involve cash flow within a year or within operating cycle. Working capital management is a
short term financial management.
Working capital management is concerned with the problems that arise in attempting to manage
the current assets, the current liabilities & the inter relationship that exists between them. The
current assets refer to those assets which can be easily converted into cash in ordinary course of
business, without disrupting the operations of the firm.
Composition of working capital
Major Current Assets
1) Cash
2) Accounts Receivables
3) Inventory
4) Marketable Securities
Major Current Liabilities
1) Bank Overdraft
2) Outstanding Expenses
3) Accounts Payable
56FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
4) Bills Payable
The Goal of Capital Management is to manage the firm’s current assets &liabilities, so that the
satisfactory level of working capital is maintained. If the firm cannot maintain the satisfactory
level of working capital, it is likely to become insolvent & may be forced into bankruptcy. To
maintain the margin of safety current asset should be large enough to cover its current assets.
Main theme of the theory of working capital management is interaction between the current
assets & current liabilities.
CONCEPT OF WORKING CAPITAL:
There are 2 concepts:
• Gross Working Capital
• Net Working Capital
57FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Gross working capital : -
It is referred as total current assets. Focuses on, Optimum investment in current assets: Excessive
investments impair firm’s profitability, as idle investment earns nothing. Inadequate working
capital can threaten solvency of the firm because of its inability to meet its current obligations.
Therefore there should be adequate investment in current assets.
Financing of current assets:
Whenever the need for working capital funds arises, agreement should be made quickly. If
surplus funds are available they should be invested in short term securities.
Net working capital (NWC) defined by 2 ways, Difference between current assets and current
liabilities Net working capital is that portion of current assets which is financed with long term
funds.
NET WORKING CAPITAL = CURRENT ASSETS
CURRENT
LIABILITIES
If the working capital is efficiently managed then liquidity and profitability both will improve.
They are not components of working capital but outcome of working capital. Working capital is
basically related with the question of profitability versus liquidity & related aspects of risk.
58FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
IMPLICATIONS OF NET WORKING CAPITAL
Net working capital is necessary because the cash outflows and inflows do not coincide. In
general the cash outflows resulting from payments of current liability are relatively predictable.
The cash inflows are however difficult to predict. More predictable the cash inflows are, the less
NWC will be required. But where the cash inflows are uncertain, it will be necessary to maintain
current assets at level adequate to cover current liabilities that are there must be NWC. For
evaluating NWC position, an important consideration is tradeoff between probability and risk.
The term profitability is measured by profits after expenses. The term risk is defined as the
profitability that a firm will become technically insolvent so that it will not be able to meet its
obligations when they become due for payment. The risk of becoming technically insolvent is
measured by NWC. If the firm wants to increase profitability, the risk will definitely increase. If
firm wants to reduce the risk, the profitability will decrease.
59FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
PLANNING OF WORKING CAPITAL:
Working capital is required to run day to day business operations. Firms differ in their
requirement of working capital (WC). Firms aim is to maximize the wealth of share holders and
to earn sufficient return from its operations. WCM is a significant facet of financial management.
Its importance stems from two reasons: Investment in current asset represents a substantial
portion of total investment. Investment in current assets and level of current liability has to be
geared quickly to change in sales.
Business undertaking required funds for two purposes: To create productive capacity through
purchase of fixed assets. To finance current assets required for running of the business.
The importance of WCM is reflected in the fact that financial managers spend a great deal of
time in managing current assets and current liabilities. The extent to which profit can be earned
is dependent upon the magnitude of sales. Sales are necessary for earning profits. However, sales
do not convert into cash instantly; there is invariably a time lag between sale of goods and the
receipt of cash. WC management affect the profitability and liquidity of the firm which are
inversely proportional to each other, hence proper balance should be maintained between two.
To convert the sale of goods into cash, there is need for WC in the form of current asset to deal
with the problem arising out of immediate realization of cash against good sold. Sufficient WC is
necessary to sustain sales activity. This is referred to as the operating or cash cycle.
60FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Kirloskar Industries Previous Years »
Balance Sheet ------------------- in Rs. Cr. -------------------
Mar '12
Mar '11 Mar '10 Mar '09 Mar '08
12
mths12 mths 12 mths 12 mths 12 mths
Sources Of FundsTotal Share Capital 9.71 9.71 9.71 38.83 38.83Equity Share Capital
9.71 9.71 9.71 38.83 38.83
Share Application Money
0.00 0.00 0.00 0.00 0.00
Preference Share Capital
0.00 0.00 0.00 0.00 0.00
Reserves 584.40 521.45 468.94 921.25 876.16Revaluation Reserves
0.00 0.00 0.00 0.00 0.00
Networth 594.11 531.16 478.65 960.08 914.99Secured Loans 0.00 0.00 0.00 348.94 342.77Unsecured Loans 0.00 0.00 0.00 0.05 0.12Total Debt 0.00 0.00 0.00 348.99 342.89Total Liabilities 594.11 531.16 478.65 1,309.07 1,257.88
Mar '12
Mar '11 Mar '10 Mar '09 Mar '08
12
mths12 mths 12 mths 12 mths 12 mths
Application Of FundsGross Block 27.37 43.91 43.15 992.39 921.32Less: Accum. Depreciation
14.65 17.39 14.34 337.55 275.35
Net Block 12.72 26.52 28.81 654.84 645.97Capital Work in Progress
0.00 0.00 0.00 18.14 64.93
Investments 518.69 452.14 425.61 471.88 476.33Inventories 0.00 0.00 0.00 123.88 194.05Sundry Debtors 0.78 0.28 19.36 292.43 356.46Cash and Bank Balance
1.42 2.29 19.73 79.11 61.59
Total Current Assets
2.20 2.57 39.09 495.42 612.10
Loans and 9.98 4.36 10.78 215.10 402.00
61FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
AdvancesFixed Deposits 68.35 67.00 0.00 0.01 0.01Total CA, Loans & Advances
80.53 73.93 49.87 710.53 1,014.11
Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 11.82 18.45 20.20 406.02 609.81Provisions 6.01 2.98 5.43 140.29 333.64Total CL & Provisions
17.83 21.43 25.63 546.31 943.45
Net Current Assets
62.70 52.50 24.24 164.22 70.66
Miscellaneous Expenses
0.00 0.00 0.00 0.00 0.00
Total Assets 594.11 531.16 478.66 1,309.08 1,257.89
Contingent Liabilities
4.37 4.34 10.30 212.84 232.01
Book Value (Rs) 611.93 547.10 493.01 49.44 47.12
62FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Kirloskar Industries Previous Years »
Profit & Loss account
------------------- in Rs. Cr. -------------------
Mar
'12Mar '11 Mar '10 Mar '09 Mar '08
12
mths12 mths 12 mths 12 mths 12 mths
IncomeSales Turnover 13.81 4.14 4.66 2,334.57 2,413.82Excise Duty 0.00 0.00 0.00 163.98 217.13Net Sales 13.81 4.14 4.66 2,170.59 2,196.69Other Income 64.28 64.73 45.99 20.77 11.68Stock Adjustments 0.00 0.00 0.00 -45.45 26.16Total Income 78.09 68.87 50.65 2,145.91 2,234.53ExpenditureRaw Materials 0.00 0.00 0.00 1,464.33 1,564.24Power & Fuel Cost 0.00 0.00 0.00 21.68 21.90Employee Cost 2.01 1.66 1.94 137.63 140.69Other Manufacturing Expenses
0.57 0.34 0.38 54.40 69.95
Selling and Admin Expenses
1.51 1.15 0.90 140.24 179.62
Miscellaneous Expenses
2.15 2.48 1.92 23.50 14.84
Pre operative Exp Capitalized
0.00 0.00 0.00 -0.62 -12.32
Total Expenses 6.24 5.63 5.14 1,841.16 1,978.92
63FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Mar '12
Mar '11 Mar '10 Mar '09 Mar '08
12
mths12 mths 12 mths 12 mths 12 mths
Operating Profit 7.57 -1.49 -0.48 283.98 243.93PBDIT 71.85 63.24 45.51 304.75 255.61Interest 0.00 0.00 0.18 37.60 19.71PBDT 71.85 63.24 45.33 267.15 235.90Depreciation 3.17 3.05 3.05 80.41 43.86Other Written Off 0.00 0.00 0.00 0.00 0.00Profit Before Tax 68.68 60.19 42.28 186.74 192.04Extra-ordinary items
0.60 0.02 0.00 4.84 5.73
PBT (Post Extra-ord Items)
69.28 60.21 42.28 191.58 197.77
Tax 1.82 4.87 3.48 64.65 68.46Reported Net Profit 67.46 55.34 38.69 115.89 118.95Total Value Addition
6.25 5.63 5.15 376.83 414.68
Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 3.88 2.43 29.13 19.42 38.83Corporate Dividend Tax
0.63 0.39 4.95 3.30 6.60
Per share data (annualized)Shares in issue (lakhs)
97.09 97.09 97.09 1,941.72 1,941.72
Earning Per Share (Rs)
69.48 57.00 39.85 5.97 6.13
Equity Dividend (%) 40.00 25.00 75.00 50.00 100.00Book Value (Rs) 611.93 547.10 493.01 49.44 47.12
64FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Kirloskar Industries Previous Years »
Cash Flow ------------------- in Rs. Cr. -------------------
Mar '12
Mar '11
Mar '10
Mar '09 Mar '08
12
mths12
mths12
mths12 mths 12 mths
Net Profit Before Tax 69.22 60.20 42.17 180.54 187.41Net Cash From Operating Activities
-11.01 -15.86 3.67 65.68 204.31
Net Cash (used in)/fromInvesting Activities
-51.28 65.71 71.17 0.48 -363.18
Net Cash (used in)/from Financing Activities
-3.13 -0.24 -56.45 -48.65 179.16
Net (decrease)/increase In Cash and Cash Equivalents
-65.42 49.61 18.39 17.51 20.30
Opening Cash & Cash Equivalents
69.29 19.73 1.34 61.60 41.30
Closing Cash & Cash Equivalents
3.87 69.33 19.73 79.11 61.60
65FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
Conclusio n
The KEC ltd is one of the renowned industrial units in the northern part of Karnataka. It is the
functioning successfully in the meeting of requirements of various industries like agriculture
industry, textile industry, and mining industry, and tool industry, petrochemical industry.
There is high-level of co-ordination among all departments that is one of the main reason for
efficient functioning of the company all departments are highly efficient and adhere to their
objectives it has also received ISO 9001 certificate.
Thus KEC is one the best examples for a better organizational set up amongst various industrial
units, functioning in the northern part of Karnataka.
66FATIMA DEGREE COLLEGE (BBA), HUBLI
KEC Unit 2. HUBLI
BIBLIOGRAPHY
Reports
Books (financial management by M Y KHAN & P K JAIN)
WEB SITES;
WWW.KIRLOSKAR ELECTRIC. COM
67FATIMA DEGREE COLLEGE (BBA), HUBLI
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