9043124372

A PROJECT REPORT
ON
ORGANISATIONAL STUDY
AT
KERALA ELECTRICALS & ALLIED ENGG CO. LTD.
KASARAGOD
[A Government of Kerala Undertaking]
Submitted by:
PRAJWAL RAO K.B.
Reg. No: 092130442
Srinivas Institute of Management Studies
Mangalore
Guided By:
Prof .R. K. Acharya
Faculty:
Master of Business Administration

0
DECLARATION
This project is prepared as a part of summer internship given by
my college Srinivas Institute of Management Studies. I have included the
materials collected from within the organization. The subject matter of the
project is as per the academic requirement put forth by curriculum guideline
of Mangalore University.
I sincerely thank the Personnel Officer of KEL Kasaragod unit, Mr. Ibrahim
Sherif for his resourceful guidance in successfully completing my project.
I declare that all the contents of this project are compiled based on
information, records and guidance authentically made available to me by the
authorized persons of KEL, and out of my observations during the course of
the project.

Kasaragod Prajwal Rao K.B

June 2010

1
ACKNOWLEDGEMENT

I am indebted to the Personnel Officer of KEL Kasaragod unit, Mr.

Ibrahim Sherif for granting me the permission to carry out this project work.
I also thank Prof. R.K. Acharya, faculty guide for guiding me in completing
this project report. Further I extend my sincere thanks to Mr.Bharath Kumar
Shetty (HOD F&A), Mr.T.S. Anil (HOD QA & Design), Mr. Rajesh Asst.
manager (Mrktg Dept.) and Mr.Santosh V.S. (Asst. Manager Mtls.Dept.) in
completing this project. I am also thankful to all the staff of KEL who
directly or indirectly helped me in completing this work.

Kasaragod Prajwal Rao K.B.

June 2010

2
TABLE OF CONTENTS
INTRODUCTION 5
COMPANY PROFILE 6-10
STRUCTURE 11
DEPARTMENTS
PURCHASE DEPT 12-13
PRODUCTION DEPT 14-18
MARKETING DEPT 19-23
QA & DESIGN DEPT 23-26
PERSONNEL&ADMN.DEPT 27-37
FINANCE. DEPT 38-42
CONCLUSION 43
SUGGESTIONS 44
BIBILOGRAPHY 45

3
INTRODUCTION
K E L is one among the largest, most vibrant and productive public sector
undertaking and is fully owned by the Government of Kerala. A multi
product engineering company, consistently catering to an envious client
base, ranging from army and air force of India to world renowned space
research organizations, highly competent engineering companies and
mammoth institutions like Indian railways.
The company with four major state of the art manufacturing
units spread across Kerala has a pan India presence with marketing offices at
major metro and selected cities. The company produces different products in
all units. It includes train lighting alternator division, transformer division,
structural division, LT switchgear division and general purpose alternator
division.
KEL unit at Kasaragod is the 1Vth unit of the company. The
foundation stone of the unit has been laid down on 26-01-1984 and was
inaugurated on 26th august 1990. The product manufacturing here is
brushless AC generator ranging from 15 KVA to 1500 KVA. At first, unit
has also been producing diesel generators. But at present it produces the AC
alternators that convert the mechanical energy in to electrical energy.

4
INDUSTRIAL PROFILE
Electricity is a form of energy involving the flow of electrons. It is the
basic part of the nature and it is one of our most widely used forms of
energy. An electric generator is a device for converting mechanical energy
into electrical energy. An electric utility power station utilizes either a
turbine, engine, water wheel or similar machines to drive an electric
generator or a device that convert mechanical or chemical energy into
electricity. An alternator is such a device which is essential for the working
of a generator.An alternator is an electronic device that converts mechanical
energy to electrical energy in the form of alternating current. Most
alternators use a rotating magnetic field but linear alternators are
occasionally used. KEL is an alternator manufacturing company. KEL is
engaged in producing brushless alternators. A brushless alternator is
composed of two alternators built end-to-end on one shaft.

5
COMPANY PROFILE
K E L is one among the largest, most vibrant and
productive public sector undertaking and is fully owned by the Government
of Kerala.KEL was established in 1964. A multi product engineering
company, consistently catering to an envious client base, ranging from army
and air force of India to world renowned space research organizations,
highly competent engineering companies and mammoth institutions like
Indian railways. The company with 5 states of art manufacturing units spread
across Kerala has a pan India presence with marketing offices in major
metros and selected cities. The 5 places were KEL operates are Kollam,
Ernakulum, Olavakkod and Kasaragod. The products produced in all the
units are different. This project is about the working of Kasaragod unit. The
company’s all-India marketing network with regional offices in all major
metro cities cater to major institutional clients like the state electricity
boards, Indian railways, and various defence establishments besides the
general market clients.
The company wants to be a globally recognized enterprise committed to
enhancing stakeholder value by providing world class engineering and
power system solutions. KEL has a mission of building long term
relationship with stakeholders in environment of fair business ethics and
values.

6
MAJOR PRODUCTS OF THE COMPANY
 General purpose Alternators
51 ratings in 10 frame sizes
 Special purpose Alternators
Marine Duty Alternators
Alternators with Special Protection
Alternators for different loads like Thyristor,
Rectifier, Welding, Induction furnace etc.
Alternators for different altitudes and ambient
Temperatures.
Alternator with different temperature rise classes.
Alternators for different power factor
Requirements.

 Traction Alternators
For Railway Applications
Different rating from 194 kW to 960 kW
For Indian/Overseas
 Low RPM Alternators
For alternate energy applications
 Train Lighting Alternators
For coach lighting for Indian Railways

MAJOR COMPETITORS OF K E L
7
  Stamford Power
 Kirloskar Electric/Green
 Leroy Somers India
 Crompton Greaves LTD
 Elgi
 ABG
Prestigious Projects of KEL
1992-500 kva,750v DA Set for Power Car-Railways
1998-100 kva,400 Hz High-frequency Alternator-
Defense
2003-194 KW Traction Alternator for DETC-Railways
2004-960 KW Traction Alternator for HHP DEMU-
Railways
2005-500 KVA Dual Speed Alternator for DTS-
Railways
2005-75 KVA, 400 Hz BPSV for Akash Missile System-
Defence.
2006-320 KVA Under slung Power Car DA Set-J&K
Railways
2006-350 HP Traction Alternator-Angolan Railway
2008-125 KVA Alternator for SPART-Railways
2009-600 RPM Alternators for Euro Supplies, Ireland

About KEL Kasaragod unit

8
Kasaragod is the 4th unit of the company. The foundation stone of the unit
has been laid down on 26-01-1984 and the unit was inaugurated on 26 th
august 1990.The product manufacturing company here is brushless AC
generator ranging from 15 KVA to 1500 KVA. At first, unit had also been
producing diesel generators. But at present it produces the AC alternator that
convert the mechanical energy in to electrical energy. The brushless
alternators are equipped with the most modern tools, automatic winding
machines, regenerative test bench and various sophisticated testing
equipment.
KEL generators manufactured at the kasaragod unit established a
capital outlay of 18 crores in technical collaboration with Leroy Somers of
France, a world leader in producing electrical machinery. The factory is
equipped with the most modern facilities which include CAD centre, the
CNC machines, vacuum pressure impregnation chamber, automatic roll
winding, dynamic balancing machines, and test bench with computerized
loading facility up to 1500 k v a etc. The unit produces the alternators
according to customer specifications and is of different ratings. The rating
are decided by the policy of KEL.

PURCHASE DEPT.

9
PURCHASING PROCESS
Purchase department

PR for planning department

Offers

Comparative Statement

Approval

Purchasing order

Supply of materials

Goods received note

Stock(Stores)

10
The purchase department purchases the raw materials and tool required for
the production of alternators. The major factors that the purchase department
takes into consideration when purchasing the materials are
QUALITY
The raw materials should be of high quality. Quality raw materials would
ensure durability to the product.
PRICE
After considering quality, then price of the materials is considered. Price is
an important factor to be considered. The company would like to purchase
the materials at a reasonable price.
DELIVERY
The delivery period should not be too long. K E L, while purchasing the
materials selects those suppliers who deliver the materials quickly.
SERVICE
After sales services provided by the suppliers should be good.

11
PRODUCTION DEPT.
PRODUCTION
Production is concerned with converting the raw materials into finished
products. The various stages in developing a new product are:
Input collection
Review
Design
Verify meet
Prototype
Validation
The company has the licensed capacity to produce 3000 alternators per
year

Production has the major activities:

 Fabrication
 Machine shop
 Winding
 Varnishing
 Testing
 Painting
 Dispatching

12
Raw materials used for production

 Mild Steel plates

 Frames
 Shafts
En8 for general purpose alternators
En 24 for 25 kW alternators

 Drive end and non drive brackets

 Laminations
 Aluminum fans
 Balancing rings
 Copper wires, both circular and rectangular copper strip
 Ball and Roller bearings

MAINTENANCE

Breakdown Maintenance: This is undertaken after the machine breaks

down. It is generally a repair work.
Total preventive maintenance: This is generally an inspection work. It is
carried to avoid the time lost due to repairing. When preventive maintenance
is adopted the machines can be kept in good working conditions and repairs
and breakdowns of the machines can be reduced.

13
 Hierarchy of Production Dept.

MANAGER (WORKS)

AM AM AM AM AM

Fabrication Machine shop Winding Assembling Varnishing and testing

WORKERS

Production Activities
Fabrication
This is the first stage in production of alternators. The sheet purchased for
producing alternators are processed under this stage. The sheets will vary
according to their rating. They are cut, bent and rolled. Shaft is also
processed here. They are cut for both single bearing and double bearing
alternators. The shafts are cut according to its rating. After fabrication
welding is done. Materials like Gusset, Lifting ring and fixation are used for
handling the materials easy. They are fixed to the alternator so that they can
be carried from one place to another.

Lamination
14
The welded materials are taken to the lamination and they are laminated
there.

Machine Shop
Machine shop is a place where the processing is done using the machines.
The machines which are used in the machine shop are:

 Phasing and centering machine

 SBCNC Computer Numerical Control
 NH 26
 L 50 heavy products are processed.
 NH 26 3000
 SBCNC 55
 Jigs and fixtures
 Horizontal boring machine
 Vertical turning machine

Winding
The materials processed through the machine shop are taken for winding.
There are 3 ways of winding in KEL.

Varnishing
Varnishing is done to protect the alternator from damage. As the major part
of the product is covered by copper wire there is possibility that wires may
15
be damaged. So it is important to varnish it and protect it. Varnishing is done
by the machine. After the winding is done, alternators are kept in a heating
machine. The machine is kept for heating for 2-12hours depending upon its
rating. The varnished machine is also kept for heating so as to get it set.

Assembling
After varnishing is done components are assembled into finished product i.e.
the alternators.

Painting
The alternator is painted differently. The paints are different for all the
alternators according to its size. KEL has green, blue colored alternators.

Final testing
After all the above steps are completed, the alternator is taken for final
testing.

16
 MARKETING DEPT.
Marketing department is concerned with all the activities that direct
the flow of goods and services from producers to consumers. Marketing is
used both to increase sales of an existing product and to introduce new
products.
The marketing department of Kerala Electricals and Alliance Engineering
Company LTD of Kasaragod actually performs dispatching function. As it is
a Government Owned organization, it does not involve in any advertising or
sales promotion activities. Therefore the marketing department does only a
dispatching job. The marketing department receives the offers from the
customers and tries to satisfy their need by delivering the product as quickly
as possible. The delivery time taken by the department is large as it requires
the approval of the head office for selling bulk alternators.

HEIRARCHY OF MARKETING DEPT.

HEAD-MARKETING

MO-1 MO-2 MO-3 MO-4

STAFF

17
FUNCTIONS OF MARKETING DEPARTMENT
 Enquiries and offers
Receiving enquiries for alternators
For GP alternators and standard spares K E L have
Price lists for various categories of customers like
Single party, original equipment assembler, export
To Nepal which shall be offered with terms and
Conditions in line with the commercial policy and
Technical details as per our current product
Broachers.

 Orders
Orders received are reviewed to meet the requirements for
delivery and post delivery activities as per contractual obligations,
regulatory and statutory requirements related to the product both
standard and
Implied.

 Finished products
Production department declares the finished goods against
corresponding sales orders, upon which dispatch clearance from the
customer is sought with demand of payment.
The finished goods shall be dispatched to customers, with due
compliance to contract review and standing regulatory and statutory
requirements.

 After sales services

18
 KEL has full fledged service facilities at all metros, with trained
engineers.
As per K E L commercial policy, all the products are warranted
against defective materials and poor workmanship for 18 months from
the date of dispatch or 12 months from the date of commissioning.
Defects shall be attended to and rectified.
 Repairs
Repairs will be provided free of cost under warranty period and an
offer for repair shall be presented to the customer after due estimation
at work.

Sections of Marketing Department

K E L marketing department has the following sections:

Contract review section
This section reviews the requirements of the customer before
submission of the tender as well as after receiving the contract and
amendment can be done in contract in response to the change in the
customer requirement.

Dispatch Section
This section makes sure that quality of the product is protected after
final inspection and test bill is being handed over to the customer. This
covers the entire product to be dispatched. Production department
transfers the finished goods to the finished goods stores. Daily dispatch
shall be planned in consultation with production and finance
department ensuring funds for excise duty payment. Adopting adequate

19
 packing system avoid transit damage and collecting invoice cum
delivery challan against each department.

Dispatch document prepared by the dispatch section contains the following

things

 Transfer copy
 Mod vat copy
 Sales declaration for outside state only
 Octroie exemption certificate
 Transit insurance shall be arranged for finished goods dispatch.

Spare section
A spare part section is maintained under the supervision of marketing
department. This section maintains a stock of spare parts purchased to be
used in the installation and after sales service of the products manufactured
by the company. Existence of this section helps the company to provide
service under one roof for manufacture, installation and after sales service.

20
MAJOR COMPETITORS OF K E L
KEL produces alternators and sells it mainly to Indian Railways.
Therefore the company has to face some tough competition in the market.
The marketing department tries to match the needs of the customers to make
sure that the customers are attached to them. The company has the following
competitors:

 Stamford Power
 Kirloskar Electric/Green
 Leroy Somers India
 Crompton Greaves LTD
 Elgi
 ABG

The main drawback company facing now is the lack of awareness

among the public. The company mainly depends on Railways. The
competitors are innovative and also aggressive, so they are able to
attract the people.KEL should come out from such a restricted mind
set. The company should spend on promotional activities so as to
compete in the market. If it succeeds in it, then the company will grow
big.

21
DESIGN AND QUALITY ASSURANCE
Quality Assurance
The quality of the materials and final product is important.kel has a separate
department known as quality assurance department which aims at ensuring
quality of the materials purchased, quality of processing and quality of
output. Quality assurance is done 3 times:

1. Inspection at the beginning

2. Inspection of the processing work
3. Inspection at the end.

Inspection at the beginning

It is related with the acquisition of raw materials which are required for
producing the alternators. The materials produced should of high quality.
Only quality materials can give quality output.

Inspection of the processing work

Once the quality of materials is ensured, it should be checked during
processing also. There are 2 types of inspections that the company adopts
during processing.

Mechanical
Electrical
It is done by the departments.

22
Inspection at the end
It is the inspection of the final product (Alternator) to see whether it is
according to the standards. If it is according to the standards, the product is
approved and the information about the finished product is given to the
marketing department. If not, the mistakes will be identified and corrected.

Quality Policy Of the company

We care to deliver products and services
conforming to specified standards and customer
requirements consistently.

C customer focus
A Alignment of quality objectives
R Review and continual improvement
E Employees participation and commitment

23
DESIGN DEPARTMENT
The design department is important departments in this company. This
department designs the alternators according to the customers order. Cost
reduction is the major factor that this department takes into consideration.
The design department consists of 4 permanent employees.

Designing is the most critical and crucial stage in manufacturing alternators.

The design manager does the rough designing work, draws sketches, reviews
it and develops the product.
The designing department of Kerala electrical ltd performs designing
function. Designs are different for the alternators depending upon its ratings.
All the general purpose alternators will have one type of design specification
and they are produced according to that specification.
Special purpose alternators like marine duty alternators, alternators for
different loads etc have different designs. The design department of K E L
designs the alternators according to the specifications of the quality
standards set by the K E L.

24
Hierarchy of Design& Quality Assurance Dept.

HOD Design& QA

ASST.MANAGER DESIGN

DESIGN
ENGINEER DESIGN
ENGINEER Q&A
DESIGN
DESIGN

25
 PERSONNEL &ADMN.DEPT.

Personnel department of KEL performs the following

functions.

Managerial
Operative
Advisory

FUNCTIONS

Managerial Operative Advisory

Managerial functions
HR Dept. has a major role in the functioning of the management.It
performs the managerial functions like planning, organizing, staffing,
directing and controlling.

26
Advisory functions
HR Dept. has a specified role in educating, training and managing the
human resources. HR management advises the top management in
formulation and evaluation of personnel programmers, policies and
procedures. He also gives advice for achieving and maintaining good human
relation and high employee morale. HR manager often advice the heads of
other department on matter such as man power planning, job analysis and
design, recruitment, selection, training, performance appraisal etc.

Operative functions
Operative functions are those task or duties which are entrusted to the HR
department under the general supervision of personnel manager. The main
operative functions are
Employment
Training and development

Welfare measures adopted by K E L

 KEL has provided its employees with a changing room and a washing
room.
 First aid kit is kept at the shop floor.
 A canteen facility is given with vegetarian food at subsidized rates.
 Rest room is provided separately for men and women.
 Safety measures such as shoes, goggles, gloves, ear protector etc are
given to the employees. Revolving machines are well guard with nets.
Fire extinguisher is provided in required points of the company.
 Ventilation and temperature are maintained as per requirements.
 Sufficient lighting facilities are provided.
27
 Co operative society is providing loan and credit facilities to the
employees.
 Workers are given attendance bonus if they attend work without
availing any leave on loss of pay.
 Drinking water is provided in each section of the department.
 Three sets of uniform are provided every two years & one set of shoe
and two sets of socks every year.
 Every employee is given an amount of rs.2000 per year as festival
advance.
 Statutory payment of bonus is done as per the law.
 All employees are enrolled in the medical claim and personal accident
policy. It also includes death insurance benefits.
 Various committees like welfare committee, canteen committee, work
committee and safety committee etc are helping for good relationship
between laborers and management for the smooth working of the
company.

Allowances and fringe benefits

Various allowances and fringe benefits are given to the
employees. The details of such benefits are as follows:
1. House Rent Allowance: HRA @ Rs.50 per month will be paid.
2. Uniform and washing allowance: Terry cotton clothes for 3 pairs of
uniforms for every two years will be given to all permanent
workmen who are eligible for uniforms, except in the case of lady
peons. The lady peons will be given 3 terry cotton sarees for every
two years.

28
3. Stiching allowance for the eligible workmen will be Rs.375/- for 3
pairs of uniform. Security guard shall be paid stiching charges @
Rs.425/- for 3 pairs.
4. Washing allowance @ Rs.20/- per month will be given to those
workmen who are provided with uniforms and wear the same
regularly.
5. Foot wear: All workmen who are at present supplied uniforms will
continue to be provided with 1 pair of shoes and 2 pairs of socks
every year.
6. Night shift allowance: Night shift allowance of Rs.7/- per night will
be paid to the workmen who attend night shift duties.
7. Milk allowance will be paid @ Rs.5/ day of attendance.
8. Cashier allowance: Workmen handling cash in the absence of the
cashier shall be paid Rs.5/- day of handling. However the maximum
amount payable in a month will be limited to Rs.85/- cashier will be
paid a monthly allowance of Rs.85/-
9. Blue printing allowances: blue printing allowance @ Rs.1.50/ on the
day they take the prints.
10. Subsidized food @ 75 paisa for meals and 15 paisa each for tea
and snack item being provided to the workmen will continue.
11. Cycle allowance for collection of mail etc will be paid @ Rs.4/-
per day they perform such duties.

Miscellaneous
1. Festival Advance shall be paid at Rs. 3000 per year. This is
payable in two installments:
Rs.1500/- for Vishu/Bakrid/Christmas
Rs.1500/- for onam.

29
2. Loan for the purchase of two-wheeler: Every year the
management shall give a loan up to a maximum of Rs.7500/-
each to 10 workmen for purchase of motor cycle. This loan
facility is extended for the purchase of second hand two-wheeler.
The loan amount so availed has to be repaid in 72 equal monthly
installments with simple interest of 10%.
3. Leave surrender @ 30 days privilege leave in a financial year.
4. Family planning incentive
5. Attendance bonus scheme: Workmen who attend without availing
any leave on loss of pay including ESI leave and having late
attendance for not more than 3 hours in a calendar year shall be
paid 12 days extra wages as attendance bonus at the rates
prevailing during the month of December of that year.
Workmen who attend duty without availing any leave on loss of
pay including ESI leave and having late attendance for not more
than 6 hours in a calendar year shall be paid 9 days extra wages
as attendance bonus at the rates prevailing during the month of
December of that year.
Workmen who attend duty without availing any leave on loss of
pay including ESI leave and having late attendance for not more
than 12 hours in a calendar year shall be paid 6 days extra wages
as attendance bonus at the rates prevailing during the month of
December of that year.
Workmen who attend the duty without availing any leave on loss
of pay including ESI leave and having late attendance for not
more than 18 hours in a calendar year shall be paid 3 days extra
wages as attendance bonus at the rates prevailing during the
month of December of that year.
Workmen who attend duty without availing any leave on loss of
pay including ESI leave and having late attendance for not more

30
 than 24 hours in a calendar year shall be paid 2 days extra wages
as attendance bonus at the rates prevailing during the month of
December that year.

Health measures
The following health measures are adopted by KEL as per the
factories act 1948:
 Cleanliness
 Ventilations

Functions of P&A department

Recruitment and selection
Recruitment is the process of influencing the perspective candidates to apply
for the job. There is mainly two sources of recruitment.
Internal sources: recruitment from among the personnel working in the
organization

External sources

 Advertisement
 Employment exchange

31
  Recruitment by PSC
 Recruitment by board

Selecting is the process of sorting out candidates from among those applied.
The different stages involved in selection are

 Receipt and scrutiny of application

 Interview
 Selection test
 Medical examination
 Placement
 Orientation program

Training and development

Training and development are essential to impart and enhance the
knowledge of workers. The training enables the workers to acquaint with the
latest technology and to improve their skills. HR department at KEL is
concentrating on the policy of “developing employees through training”.

Types of training provided

1. In plant Training
New employees are trained in the plant regarding the various
aspects of production – materials, process, parts etc.
2. Customer support training

32
 Employees are provided training to make them competent in
knowledge regarding the products, its features, cost benefits,
security measures and uses of the product.
3. Induction training
Induction training is an introduction to the company, its working
environment, employees working in the organization to the newly
employed. Immediate supervisor is responsible for induction
training.
4. Promotion, demotion
Promotion is the upward movement in the job hierarchy of an
organization. The promotion is done on seniority cum merit basis.
Demotion is the downward shift in the job resulting in loss of
pay, status etc.

KEL has its own promotion policy systematic and which is

followed since 1990.Promotion is mainly based on seniority.
Promotion is made only to the next higher grade subject to
qualification, seniority, efficiency, discipline, attendance and
other criteria.

TRADE UNIONS
Trade unions are associated with common interest or taste.
These associations are formed to protect and safeguard the common
interest of the workers in general. The trade unions are
Kasaragod KEL employees union (CITU)
KEL employees association (INTUC)
KEL workers union (STU)
33
STRUCTURE OF HR DEPARTMENT

HOD

PESONNEL
OFFICER

ASSISTANT
PERSONNEL
OFFICER

JUNIOR
OFFICERS

EMPLOYEE STRENGTH OF K E L KSD UNIT AS ON

APRIL 2010
34
POSTS No of employees
General Manager 1
Deputy General Manager 4
Manager 8
Assistant Manager 15
Engineer 9
Personnel Officer 1
Assistant Engineer 2
Foreman GR 1 1
Foreman GR 11 1
TOTAL 42
Charge Head 8
Charge Head Grade 8
Special Skilled Worker 31
Other Staff 28
Under ID ACT
Skilled Worker 27
Semi Skilled Worker 25
Worker GR 111 14
Worker GR 1V 29
Worker GR V 9
Sweeper Cum 1
Scavenger(Trainee)
TOTAL 180
GRAND TOTAL 222

FINANCE DEPARTMENT

35
 The finance department of KEL is headed by Mr.Bharath Kumar Shetty
Manager. There are many activities a finance manager does. The major
functions of the finance manager of KEL are as follows:

ACCOUNTING FUNCTIONS
All the recording of income expenses etc are done by the finance
department.
The finance manager is a part of decision making committee. The committee
is formed to take decisions on the supplier from whom to buy the materials,
setting the price for the alternators etc.
KEL standards specify that all purchases exceeding 10 lakh should be
reported to the corporate office.

PAYMENT
The payment is made by the finance department. Normally the payment is
made not by cash but by means of Demand Draft, Check or online payment.
Only payment involving small amount is paid by cash.

OBSERVING EXPORTS
36
 The finance manager also performs the tax related things.
Being a manufacturing company there are many auditing that take place at
KEL.
Internal statutory audit
AG audit
Tax audit
Excise audit
Sales tax audit
The finance department has some duties within the organization they are
Payment of salaries
Payment of bonus
Gratuity
Maintenance of PF records

Duties with head office

Submission of stock report
Submission of monthly production report
Submission of monthly performance report
In addition to the above, finance manager prepares the budget, cost
estimates for each products and also the preparation of income statement and
balance sheet.

37
Sources of finance
The major source of finance for KEL is SBT (State Bank of Travancore)
The other sources of finance for KEL are State bank of India and State Bank
of Mysore.

Hierarchy of Finance department

FINANCE MANAGER

ASSISTANT MANAGER

CLERKS

OFFICE ASSISTANTS

Profit and Loss a/c as on 31 march 2010

38
Particulars amount Particulars Amount

Opening stock 45731915.60 Sales account 168372511

Purchase 87973852
accounts Direct income 43553847
Direct expenses 47442128

Gross profit c/d

30778462
TOTAL
211926358 TOTAL 211926358
Indirect
expenses By Gross profit 30778462
5520823 b/d
Indirect 6602
incomes
Net profit
25264241
TOTAL
30785064 TOTAL 30785064

BALANCESHEET as on 31 march 2010

39
LIABILITIES AMOUNT ASSETS AMOUNT

Capital account Fixed assets 17250137

Loans 9335081
Current assets 176366559
Current 58880407
liabilities Branch/division 77719728
s
Profit& Loss 73147
account 203194083 Suspense a/c

TOTAL 271409572 271409572

TOTAL

CONCLUSION
40
 KEL is an efficient unit comparatively well equipped with
respect to men and machines. Bottlenecks and red tapism in
decision making in marketing sector is the main limitation of the
organization. The fact that this unit can produce quality products
with competitive prices is proven by an interest shown by other
reputed companies of the country in the same field to associate or
take over this unit. The unit certainly has a bright future if fruitful
steps are taken to improve the customer base by creating:
 Greater awareness among potential customers
 Greater decision making powers to marketing personnel
 Framing rules and regulation of marketing section of the unit
after thoroughly studying the competitors marketing strategies.

SUGGESTIONS

41
 KEL generators manufactured at Kasaragod unit established
a capital outlay of 18 crores in technological collaboration with
Leroy Somers of France. The factory is also well equipped with
latest technologies. But the major problem that the factory faces is
transportation, as the factory is situated in a remote place. The
advantage is that it doesn’t create any pollution.
KEL largely depends on Indian Railways. To become a profitable
concern, KEL should try to develop various marketing strategies so
as to explore new markets. Compared to nearest competitors KEL
has less flexibility with respect to fixation and change of terms and
conditions to win market competition. KEL should try to convert
small customer base in to a larger customer base.KEL should be
much more aggressive in its marketing. More authority and
flexibility to the unit managers to win over competition will
improve the market for the company.

42
BIBILOGRAPHY

WEBSITE: WWW.KEL.CO.IN

Records and Materials provided by the HR Department and other

Departments.
Classes conducted by the concerned Dept. Heads
Interaction with the Employees

43