INTRODUCTION

In this competitive business world to gain success an organization has to have a upgraded technology and knowledge, by this only it can acquire the market. To upgrade the technology and knowledge it is necessary to understand the organization structure. An organization structure consist of four major areas. They are  Specialization of work

 Departmentalization

 Span of control

 Centralization and decentralization

By this we can say that every component of organization has impact on organization structure. To study the impact of these components organization study is essential.

OBJECTIVE OF THE STUDY

 Organization study helps to understand and predict organization life.

 Organization study provides a road map to lives in organization.

 To study the comparison between the theoretical aspects and the practical implementation in the company

 To know the major sources and factors that motivated the customer to buy those products..

 Organization study helps in generating new ideas.

 To know the financial status of the company.

1 INDUSTRY PROFILE:

Soap is one of the commodities which have become an indispensable part of the life of modern world. Since it is non durable consumer goods, there is a large market for it. The whole soap industry is experiencing changes due to innumerable reasons such as government relations environment and energy problems increase in cost of raw material etc. The changing technology and ever existing desire by the individual and the organization to produce a better product at a more economical rate has also acted as catalyst for the dynamic process of change.

More and more soap manufacturers are trying to capture a commanding market share by introducing and maintaining acceptable products. The soap industry in India faces a cut throat competition while multinational companies dominate the market. They are also facing severe threat from dynamic and enterprising new entrance especially during 1991-92.

If we look back into the history of soaps & detergents, mankind knew about soaps nearly 2000 years back i.e. in 70 A.D. when Mr. Elder accidentally discovered the soap, when roasted meat over flowed on the glow in ashes. This lump like product was soap & had foaming & cleansing character. In 1192 A.D. the first commercial batch of soaps was made & marketed by M/s Bristol soap market in London, from there in 1662A.D. the first patent for making soap was taken in London. The world consumption of soap in 1884A.D. was said to be 2 lakh tonnes p.a.

2 HISTORY OF THE SOAP: Soap manufacturing was started in North America. Some American companies with well known names were started 200 years ago. During middle age soap was made at various places in Italy, France, England & other countries. France became famous & many small factories were established there. In India the first soap industry was established by North West soap company in1897 at Meerat following the Swadeshi movement. From 1905 onwards few more factories were setup. They are, • Mysore soap factory at Bangalore • Godrej soap at Bombay • Bengal chemicals • Tata oil mills • 1930 lever brothers company

THE INDIAN SOAP INDUSTRY SCENARIO: The Indian soap industry has long been dominated by hand full of companies such as: 1. Hindustan Uni levers limited. 2. Tata oil mills (taken over by HUL) 3. Godrej soaps private limited.

The Indian soap industry continued to flourish very well until 1967-68, but began to stagnate & soon it started to recover & experienced a short upswing in 1974. This increase in demand can be attributed due to; 1. Growth of population. 2. Income & consumption increase. 3. Increase in urbanization. 4. Growth in degree of personal hygiene.

Soap manufacture has 2 classifications, organized and unorganized sectors. KSDL comes under organized sector.

3 PRESENT STATUS: Market scenario: India is the ideal market for cleaning products. The country’s per capita consumption of detergent powders & bars stands at 1.6kg & soaps at543Gm. Hindustan liver, which towers over the cleaning business, sells in all over the cleaning business but the tiniest of Indian settlements. The 7.4lacks tons per annum soap market in India is crawling along at 4%. The hope lies in raising Rupee worth, the potential for which is high because the Indian soap market is pseudo in nature & it is amazingly complex being segmented not only on the basis of price benefits, but even a range of emotions within that outlining framework.

PROBLEMS OF SOAP INDUSTRY:

Soap industry faces some problems in case of raw materials. The major ingredients are soap ash, linear alkyl, benzene& sodium. Tripoli phosphate poses number of serious problems in terms of availability. The demand supply gap for vegetable oil is 1.5 to 2 lacks tons & is met through imports. In recent times, caustic soda and soap ashes in the cheaper varieties of soaps are quite high.

4 COMPANY PROFILE:

HISTORY:- India is a rich land of forest; ivory, silk, sandal; precious gems are magical charms of centuries. The most enchanting perfumes of the world got their exotic spell with a twist of sandal. The world’s richest sandalwood resource is from one isolated stretch of forests land in South India that is Karnataka.

The origin of sandalwood and its oil in Karnataka, which is used in making of Mysore sandal soaps, is well known as Fragrant Ambassador of India & Sandalwood oil is infact known as “Liquid Gold”.

By the Inspiration of His Highness Maharaja of Mysore late Jayachamarajendra Wodeyar, the trading of sandalwood logs started which was exported to Europe and New destinations, but with commencement of First world War India faced Severe Crisis on the business of sandalwood.

This situation gave rise to start of an industry, which produces value added products i.e., of Sandalwood oil. His Highness Maharaja of Mysore created this situation as an opportunity by sowing the seed of the Government Sandalwood Oil Factory, which is the present KS&DL. The project was shaped with the engineering skills and expertise of the top level. Late Sir M.Visvesvaraya, the great Engineer who was the man behind the project. Today’s famous Mysore sandal soaps credit goes to late Sri Sosale Garalapuri Shastri who incorporated the process of soap making using Sandalwood oil. He was an eminent scientist in the field working at the Tata Institute, Bangalore. He was sent to England to master the fine aspects of soap manufacturing.

The Maharaja of Mysore & Diwan Sir.M.Visvesvaraya established the Government Soap factory during the year 1918. The factory was started as a very small unit near K.R.Circle, Bangalore with the capacity of 100 tons P.A. In November 1918 the Mysore sandal soap was put into the market after sincere effort and experiments were undertaken to

5 evolve a soap perfume blend using sandalwood oil as the main base to manufacture toilet soap. The factory shifted its operation to Rajajinagar industrial area, Bangalore in July 1957, where the present plant is located. The plant occupies an area of 39 acres (covering Soaps, Detergents and Fatty Acid divisions), on the Bangalore – Pune Highway, easily accessible by transport services and communication. Another sandal wood oil division was established during the year 1944 at Shimoga, which stopped its operations in the year 2000.

This factory started at a moderate scale in year 1916. The first product was washing soap in addition to the toilet soap in the year 1918. The toilet soap of the company was made up of sandal wood oil.

In 1950 Government decided to expand the factory in two stages. The first stage of expansion was done to increase the output to 700 tons per year and was completed in the year 1952 in the old premises.

The next stage of expansion was implemented in 1954 to meet growing demand for Mysore sandal soap and for this purpose Government of India sanctioned license to manufacture 1500 tons of Soaps and 75 tons of glycerin per year. The expansion project worth of Rs.21 lacks includes the shifting of the factory to a newly laid industrial suburban of Bangalore.

The factory started functioning in this new premise [i.e., present one] from 1st July 1957. From this year onwards till date the factory had never looked back, it has achieved growth and development in production scales and profits.

The industry has 2 more divisions one at Shimoga and another at Mysore where sandal wood oil is extracted. The Mysore division started functioning from 1917 and only during 1984 manufacturing of perfumed and premiere quality Agarbathies at was started. Right from the first log of sandalwood that rolled into the boiler room in 1916, the company has been single – minded pursuit of excellence. The project took shape with the engineering skills and expertise of top-level team under the leadership of Sir. M.Visvesvaraya, Prof. Watson and Dr.Sudborough. Like this soap factory was started as a small unit and now it has grown up to a giant size.

6 RENAMING: - On 1st October 1980, the Government Soap Factory was renamed as “Karnataka Soaps and Detergent Limited” The Company was registered as a public limited company. Today Company produces varieties of products in the toilet soaps, detergent, Agarbathies and Cosmetics.

COMPETITORS OF KS&DL PRODUCTS AND SERVICES:-

KS&DL is facing cut-throat competition in national and international market. Some of its main competitors are:-

 M/S. Hindustan Uni Lever Ltd.,  M/S. Godrej Soaps Private Ltd.,  M/S. Proctor& Gamble  M/S. Wipro  M/S. Nirma Soaps Private Ltd.,  M/S. Jyothi Laboratories TRADEMARK OF KS & DL:-

The “ SHARABHA ”

The carving on the cover is the sharabha, the trademark of KS & DL.

The sharabha is a mythological creation from the “puranas” which has a body of a lion and head of elephant, which embodies the combined virtues of wisdom and strength. It is adopted as an official emblem of KS& DL to symbolize the philosophy of the company.

The sharabha thus symbolized a power that removes imperfections and impurities. The maharaja of Mysore as his official emblem adopted it. And soon took its pride of place

7 as the symbol of the Government Soap Factory of quality that reflects a standard of excellence of Karnataka Soaps and Detergent Limited.

SLOGAN:-

“NATURAL PRODUCTS WITH EXOTIC FRAGRANCES”

KS & DL has a long tradition of maintaining the highest quality standard, right from the selection of raw materials to processing and packing of the end product. The reasons why its products are much in demand globally and are exported regularly to UAE, Beharen, Saudi-Arabia, Kuwait, Qatar, South America. The entire toilet soaps of KS & DL are made from raw materials of vegetable origin and are totally free from animal fats.

POLICY OF KS&DL:-  Seek purchase of goods and services from environment responsible suppliers.  Communicate its environment policy and best practices to all its employees’ implications.  Set targets and monitor progress through internal and external audits.  Reuse and recycle materials wherever possible and minimize energy consumption and waste.

BIRDS EYE VIEW OF KS&DL:- 1918 – Government Soap Factory was started by Maharaja of Mysore and the Mysore Sandal Soap was introduced into the market for the first time. 1950 - The factory output rose to 500 M.Tons with the following modifications. 1. Renovating the whole premises. 2. Installing new boiler soap building plant and drying chamber. 1954 – Received license from Government to manufacture 1500 tons of soap and 75 tons of glycerine per year. 1957 – Factory shifted its operation to Rajajinagar industrial area. 1974 – Mysore sales international limited was appointed as the sole

8 selling agent, for marketing its products.

1975 – Rs.4 Crores synthetic detergent plant was installed based on Italian technology by Ballestra SPA. 1980 - On 1st October 1980 the Government Soap Factory was converted into a public sector enterprise and renamed as “Karnataka Soaps & Detergents Limited”. 1981 – a) Production capacity increased to 6000 tons, b) Rs.5 Crores Fatty Acid Plant was installed. 1984 – Manufacturing of premium quality of Agarbathies at Mysore division. 1985 – Production capacity was raised to 26,000 M.Tons Per Annum. A large variety of toilet soaps at attractive shapes, colors and fragrances introduced to meet the varieties & tastes of consumers. 1992 – The company was registered with the Board for Industries and Financial Reconstruction (BIFR), New Delhi in December for rehabilitation, as the company suffered losses continuously since 1980 at its net worth fully eroded. 1996 – The BIFR approved the rehabilitation scheme in September & the Company stated making Profits. 1999 – ISO-9002 Certificate for quality assurance in production, installation and Servicing. 2000 – ISO-14001 certificate pertaining to environmental management system. 2003 – The entire carried forward loss of Rs.98 Crores wiped out and in May BIFR, declared the company to be out of its Purview. The Company is making profit continuously, It is only State Public Sector unit that has come out of BIFR. 2004 – The ISO-9002 was upgraded to ISO-9001-2004, Quality Systems.

9 PRESENT STATUS OF THE COMPANY The company is mainly dependent on southern market. The product availability in retail outlets particularly for Mysore sandal soap is almost comparable to any other similar industries products in the premium segment in the south. Whereas in other parts like Eastern & Northern markets penetration of KSDL product is relatively poor, which depends on the company’s distribution structure, stockiest and field personnel strength.

With increased trust on distribution, the company does not foresee any problems to achieve the projected sales through the redistribution package. Further, the policy of Indian Government also sees the public sector enterprises enter the industry in a large way there by making the products available to the consumers at reasonable prices.

Being located in the centre of southern part of India the Government Soap Factory claims preferential treatment for expansion programmed in view of availability of exotic natural Sandalwood oil.

AN ISO-9001 COMPANY: - KS & DL with a tradition of excellence of over eight decades is committed to customer delight, through total quality management and continuous improvement through the involvement of all employees. KS&DL has got ISO 9002 certificate. To improve the quality management system and to facilitate TQM in the process of soap and detergent, the management took decision to obtain ISO-9002 by end of March 1999. Accordingly action plan was drawn and a committee was set up for the purpose during October 1998 with a mission statement.

The company gives initial training including conducting employee’s awareness programme, document quality manual and quality system procurement.

In this direction company obtained the guidance from Consultancies, Bangalore and Bureau of Indian Standards, Bangalore. Accordingly, company standards registered for ISO 9002 10 by the end of March to the Bureau of Indian Standards. Obtained the certificate by the end of March 1999 itself.

This is to project in the national and international market and also to improve quality of products offered to the consumers with the assurance of quality in the message.

The Company got itself upgraded to ISO-9001-2004, Quality Systems in the year 2004-05.

ISO-14001:- The company is located in the heart of the Bangalore city. The management of the company took a decision to get the ISO-14001 and become model to other public sector for the techniques used and also to other Government units to spread the message of maintenance of environment.

ISO-14001 and ISO-9001 will facilitate to improve the corporate brands in the global market and it will help the company to improve the profits, year after year on long-term basis. The environment management system adopted in the company through this motive as follows:

 Conservation of energy  Conservation of Surrounding  Conservation of resources. Equipped with latest technology and backed by full-fledged quality control and R&D support, KS&DL is marching confidentially ahead in the new millennium. The Company is developing new products to meet the changing preferences of its customers.

THE BIRTH OF A LEGEND:- The early year of the 20th century witnessed the birth of a magical formula, created from the finest and purest sandalwood oil, better known as “liquid gold”, distilled exclusively at divisions in Karnataka-Mysore. A fragrant gift to the world from the first Government Soap Factory of India. Nurtured by the Maharaja of Mysore, enriched with all the goodness of natural sandal wood oil, this unique soap captured hearts and markets at home, as well as right across the globe creating a fragrant legacy for the state of Karnataka. Karnataka Soaps and Detergents limited (KS&DL) is the true inheritor of this golden legacy of India.

11 Continuing the tradition of excellence for over eight decades, using only the best Grade sandal wood oil in its product range, KS&DL today is one of the largest producers of Sandal wood oil and sandal wood soaps in the world.

PRODUCT MANUFACTURED BY KS&DL:-

TOILET SOAPS

NAME OF THE PRODUCT UNITS OF GRAMS Mysore Sandal Soap 75, 125 Mysore Sandal Classic Soap 75 Mysore Sandal Gold Soap 75, 125 Mysore Sandal Baby Soap 75 Mysore Special Sandal Soap 75 Mysore Rose Soap 100 Mysore Sandal Herbal Care Soap 100, 125 Mysore Jasmine Soap 100 Wave Soap 100 Mysore lavender Soap 150 Mysore Sandal bath tablet 150 Mysore Sandal classic bath tablet 150 Mysore Jasmine bath tablet 150 Mysore Special Sandal tablet 150 Mysore Sandal rose tablet 150 Mysore Sandal Guest tablet 17

GIFT RANGE SBT SJR

12 06 IN 01 GOLD SIXER

DETERGENTS

NAME OF THE PRODUCT UNITS IN GRAMS Mysore detergent powder 1000 Mysore detergent powder 500 Mysore detergent Cake 125 Mysore detergent cake 250

TALCUM POWDERS

NAME OF THE PRODUCT UNITS IN GRAMS Mysore Sandal Talc 20, 50, 100, 300 Mysore Sandal Baby Talc 100, 200, 400

AGARBATHIES

NAME OF THE PRODUCT Mysore Sandal Premium Mysore Sandal Regular Mysore Rose

13 Nagachampa Suprabhatha Mysore Jasmine Parijata Sir M.V.100 Bodhisattva Venkateshwara Durga Ayyappa Alif Laila Meditation

PRODUCT PROFILE- KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best East Indian grade Sandalwood oil & Sandalwood soaps in the world. The products produced at KS&DL are the Soaps, Detergents, Agarbathies and Sandalwood oil. PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP a. Mysore Sandal Soap (75gm,125gm & 150gm)

b. Mysore Sandal Special Soap (75gm)

14 c. Mysore Sandal Baby Soap (75gm)

d. Three-In-One Gift Pack –(SJR) 3Tabs (150gm Each)

d. Mysore Sandal Gold Soap (125gm)

e. Mysore Rose Soap (100gm)

15 f. Six-In-One Gift Pack- 6Tabs (150gm Each)

g. Mysore Sandal Gold sixer 6 Tabs (125gm Each)

h. Mysore Sandal Soap Bath Tablet Trio 3nos. (150gm Each)

DETERGENTS:

16 KS&DL also manufactures high quality detergents applying the latest spray drying technology with well balanced formulation of active matters & other builders; they provide the ultimate washing powder.

1. Sensor Detergent Powder (1kg/2kg) 2. Mysore Detergent Powder (1kg/500gms) 3. Mysore Detergent bar (250gms) 4. Mysore Detergent Cake (125gms/250gms)

AGARBATHIS: 1. Mysore Sandal premium 8. Mysore sandal 2. Mysore Rose 9.Nagachampa 3. Suprabath 10.Mysore Jasmine 4. Parijata 11.Bodhisattva 5. Venkateshwar 12.Durga 6. Ayyappa 13.Alif Laila 7. Chandhana

SANDALWOOD OIL: In 5ml, 10ml,20ml, 100ml,500ml,2kg,5kg,20kg,and 25kg packing. POWDERS: 1. Mysore Sandal Talk: Cooling & Healing, Fragrant freshness, Net. Wt 20gm, 60gm, 300gm and 1kg. 2. Mysore Sandal Baby Powder: Tender loving care for baby…& Mummy. Net wt 100-400gms. AREA OF OPERATION: GLOBAL FAVOURITES FOR THEIR NATURAL GOODNESS: KS&DL has a long tradition of maintaining the highest quality standards, right from the selection of raw materials to processing and packaging of the end product. The reason why its products are much in demand globally & are exported regularly to UAE, Bahrain, /Saudi Arabia, Kuwait, Qatar, South East Asian countries as well as North America & South America. The sandalwood oil, of course, is much sought after by the leading perfume houses of the world. All the toilet soaps of KS&DL are made from oils & fats of vegetable

17 origin & totally free from Mr. the document close the document had me out show auctions what can I do what can I do and as exit animal fat.

OWNERSHIP PATTERN: “Wholly owned by Government of Karnataka”.

COMPETITORS INFORMATION AND THEIR MARKET SHARE: HUL 70% Godrej 4% Procter & gamble 10% KSDL 11% Others 5%

PRESENT STATUS: 1. The company has entered into shampoo, dish wash, detergent bar & room refresher. 2. The company is striving to develop new perfumes for soaps detergents, agarbathies & shampoo. 3. The company wants to improve the existing products in terms of quality.

INFRASTRUCTURAL FACILITIES: 1. Canteen facility 2. Library 3. Car stand 4. Waiting room WORK FLOW MODEL: SILOS

18 (Silos are closed chambers)

Soaps Noodles

Container Mixer

Simplex Plodder

It becomes NOODLES

Milling

It becomes soap ribbons

Duplex plodder

Cutting Machine

Cakes are led to

Stamping Machine

Wrapping machine

Led through the conveyor belt

ACHIEVEMENTS/AWARD: 1. Government of Karnataka Dept of Industries and commerce State Export Promotion Advisory Board. “EXPORT AWARD” 1974-75 2. Detergent Plant M/s Chemical Bombay have given 1st price for the year 1980-81

19 3. Geographical Indication GI-2005 4. ISO 9001-2000 in the year 1999 5. ISO 14001-2004 in the year 2000

FUTURE GROWTH AND PROSPECTUS: • Introduction of anti-bacteria, herbal transparent soap, made out of 33 essential oil based perfume, Aloe Vera, Vitamin-E etc as additive and suitable for all types of skin and all seasons. • Improvement in existing products Mysore Sandal classic improved moisturizers & skin conditions. • Introduction of sandalwood powder in 50gms, 100gms to meet the growing demand for religious purpose. • Introduction of new higher powered detergent powder for institutional sales in bulk packaging. • To attain market leadership. • Introduction of new trade schemes to increase sales. • Aggressive advertisement and publicity as part of sales promotion. • Reduction in distribution expenses. • Cost-reduction in all areas. • Instant decision making in certain procurement activities. • Timely introduction and implementation of market driven decisions. • Ensuring effective internal control.

20 STRUCTURE OF ORGANISATION: A. BASIS OF DEPARTMENTATION KS&DL is a manufacturing concern of moderately large size. It facilitates effective utilization of manpower and resources and it is a simple, economical and reasonable organization pattern.

B. LEVELS OF ORGANISATION The organization of KS&DL consists of 4 levels, they are  TOP LEVEL consisting of BOD’s and M.D

 SECOND LEVEL consisting of Directors of Finance and Special officers

 THIRD LEVEL consisting of senior managers, deputy managers and officers.

 FOURTH LEVEL consisting of clerks, Assistants and Attendees.

21 KS&DL AT GLANCE:- Incorporated Name - Karnataka Soaps and Detergents Limited.

Address - Karnataka Soaps and Detergents Limited Bangalore Pune High Way Post Box No.5531, Rajajinagar, Bangalore – 560 055 Ph: 080-3377691/3370469/23371103 to 06 22376922 to 24 Email : Mysorsandal @ vsnl.com Website : www.mysoresandal.com

Year of Establishment - 1918

Constitution - Wholly owned by Govt. of Karnataka Undertaking

Management - Govt.of Karnataka nominates/appoints Board of Directors. Chairman & MD

Renamed - 1980

Trademark - The trademark is SHARABHA. It is the Body of lion with the head of an elephant means blending the intelligence of lion with strength of an elephant.

Production range - Toilet soaps, bar soaps, Detergent Cakes, Powders, Agarbathies, Cosmetics, Baby products, Sandalwood Oil.

22 Process know how - The facility is a pioneer in the Manufactures of various soaps and technology Imported from Italy.

Capacity of the Unit - Licensed capacity is 26,000 metric tons of Soaps & 10,000 M.Tons of Detergents Per annum Plants - At Bangalore Soap Plant Detergent Plant Fatty Acid Plant

- At Mysore Sandal wood Oil Agarbathies - At Shimoga Duty Paid Godown

23 McKinsey’s 7S Framework

According to Waterman, organization change is not simply a matter of structure, although structure is significant variable in the management of change. Again it is also not a simple relationship between strategy and structure, although strategy is also a critical aspect. In their view effective organizational change may be understood to be a complex relationship between strategy, structure, system, style, skills & shared values. The first three elements- strategy, structure &system are considered the “hardware” of success. The next four – style skills, staff, and shared values are called the “software”. The complex relationship is diagrammatically presented below;

C .ORGANIZATION CHART OF KS&DL

24 KS&DL is Functional type of organization. Under this type of organization men with special abilities in a specialized function are employed. The hierarchy is represented as follows.

25 26 STYLE OF MANAGEMENT: Decision-making is centralized with the head office. Authority is given to unit in-charge to take decision in day-to-day minor matters & other urgent matters. Decision-making depends on the authority & responsibility conferred on each individual & thus it’s distributed based on designation & position held. In important matters, meetings are held to seek opinions of top management & various department manager & the decisions are taken & implemented. Decision-making is co-ordinate & done with wide consultations of top management or department manager’s consultation which gives best possible gains.

STRATEGY: Strategic planning is about asking questions, more than attempting to answer them. Strategy formulation entails a search for a different frame of reference. It is the quest for a new business paradigm. There are two types of paradigms that apply to management, namely the business and the organizational or managerial paradigms. The business paradigms define a company’s position in the market place with respect to customers, technology and products.

Strategy is a choice of direction and action; the company adopts to achieve its objectives in a competitive situation. Any statements on overall of functional strategy that the company may wish to share are: Improvement in the existing products. • Their future plans include launching of new products. • The cost control exercise is in consolidation. • Introduction of cost effective substitutes without compromising on quality • Development of new perfumes, soaps detergents, Agarbathies, creams and shampoos.

27 FUNCTIONAL DEPARTMENTS OF KS&DL  Human Resources Department

 Production Department

 Marketing Department

 Finance\Accounts Department

 Research & Development Department

 Stores Department

 Welfare Department

 Maintenance Department

 Materials Department

 Management Information System Department

28 3.1 HUMAN RESOURCE DEPARTMENT:

STRUCTURE OF HRD DEPARTMENT

MANAGING DIRECTOR

ASST.GEN.MGR [HRD]

MGR [HRD]

FIRST AID CANTEEN TIME OFFICE OFFICER [HR

VMO LWO JR. OFFICER ASST.MGR

SR.ASST. JR.OFFICER SENIOR ASSTS JR.OFFICERS

ATTENDER SR.ASSTS HELPER SR.ASSTS.

ATTENDER Cooks

Helpers

29 01 M.D Managing Director 02 Asst.Gen.Mgr Assistant General Manager [HRD] 03 Mgr [HRD] Manager [HRD] 04 Asst.Mgr [Canteen] Assistant Manager [Canteen] 05 LWO Labour Welfare Officer 06 VMO Visiting Medical Officer 07 Officer [HRD] Officer [HRD] 08 Jr.Officer [HRD] Junior Officer [HRD] 09 Sr.Asst.s Senior Assistants 10 Attainder Attainder 11 Cooks Cooks 12 Helpers Helpers

Luther Gulick highlighted “POSDCORB” which stands for planning organizing, staffing, Directing, Coordinating, Reporting & Budgeting is the part of personnel management.

Personnel management performs lot of function in KSDL. 1. Recruitment 2. Implementing. 3. Training 4. Cordial relationship of Industry 5. Disciplinary matters 6. Performance appraisal 7. Employee safety etc

KEY FUNCTIONS OF THE HRD:- 1) Recruitment and Selection 2) Training and Development

30 3) Promotion and Transfer 4) Wages and salary administration 5) Performance Appraisal 6) Industrial Relations 7) Disciplinary Action and 8) Welfare Measures

Cordial relation with Trade unions: KSDL is trying its level best to ensure healthy & cordial relation with trade unions in all matters regarding industrial disputes & employee satisfaction. Personnel management is act as a mother as it ensures people are treated perfectly well & widening the scope of the employees.

MAN POWER DETAILS:

SOD Marketing Duty paid GROUP Bangalore branches Godown Total Mysore Shimoga Executives 85 07 56 02 150 Supervisors 49 10 15 - 74 Workers 548 30 39 16 633 Total 682 47 110 18 857

FRINGE BENEFITS PAYABLE TO THE UNIONIZED CADRES EMPLOYEES

31 1. Shift Allowance: There are three shifts and one general shift. The office hour is from 9.30am – 5.30pm. The shift timings are as follows: First Shift 6.00am to 2.00pm Second Shift 2.00pm to 10.00pm Third Shift 10.00pm to 6.00am General Shift 7.30am to 3.30pm

The lunch time is from 12.00pm to 12.30pm. Every Sunday is rest day for the employees. No allowance is paid to the first shift workers; a sum of Rs.25 and Rs.35 per day is paid to workers for second and third shift respectively.

2. Washing Allowance: The company provides two sets of uniform once in a year. For this a washing allowance of Rs.50 per month is paid to every worker.

3. Leave: The company provides: • Earned Leave (EL): Workman who wishes to avail privilege leave shall apply at least 3 days in advance to General Managers. This leave can be accumulated and encased. 18 days EL is credited to an employee. It can be encased and for this purpose the basic+ DA to the employee is calculated for 26 days but paid for 15 days in a year.

• Casual Leave (CL ): The leave is to meet unforeseen circumstances and is granted for 3 days at a time and 7 days CL is given to an employee per year.

• Sick Leave (SL): Workman who avails sick leave exceeding 3 days at a time should produce medical certificate from Doctor. 15 days of sick leave is given for an employee per year and it can be encashed.

4. Conveyance Allowance : The conveyance allowance of Rs.680 per month per workman is extended.

5. Special Allowance : Paid to Typists, Stenographers, Asst.Cashiers, and Store Keepers from Rs.55 to Rs.75.

32 6. Family Travel Allowance: This allowance is paid at the rate of Rs.500 per employee per year who has put a minimum three years of service.

7. Canteen Facilities : All employees are provided with canteen facility at highly subsided rate.

8. Annual Bonus : It is agreed to pay the profit sharing bonus in terms of the provisions payments of Bonus Act 1965.

9. Attendance Bonus : It is paid equivalent to one day’s basic pay subject to minimum of Rs.75 per month.

10. House Building Advance (HBA), House Repair Advance, House Purchase Advance: KS&DL has agreed to provide subsidy on the loan amount secured by the employee from HDFC or any recognized financial institutions viz., co- operative banks, scheduled banks etc., If the interest payable by the employee exceeds 7% then he shall be eligible for interest subsidy to be borne by the company not exceeding 5%.

11. Festival and National Holidays : Number of paid holidays in the company is 10 festival holidays and 3 national holidays per calendar year. 2 holidays will be treated as restricted festival holidays to be selected by the employees from the list of holidays to be notified by the company for this purpose.

12. Death Relief Fund : Rs.30,000 will be paid to the nominee in case of death of an employee.

13. Memento to retiring employee : Rs.2,500 will be paid as memento to retiring employees.

33 14. Medical Reimbursement: Benefit to non-ESI employees a sum of Rs.500 per month will be paid per employee towards domiciliary treatment. With regards to hospitalization treatment, the company has taken mediclaim policy from Insurance Company for a sum of Rs.1,50,000 per employee, which includes spouse and two children.

15. Postponement of Increment: Postponement of the annual increment automatically in respect of the employees who are absent without pay corresponding to the period apart from taking disciplinary action as per provisions of standing orders

Units Postponement of increment by Absence without pay for more than 30 One month days less than 40 days. Absence without pay for more than 40 2 months days less than 70 days. Absence without pay for more than 70 3 months days less than 100 days.

PAY SCALE OF UNIONSED CADRE EMPLOYEES W.E.F. 01.05.2008 TO 30.04.2013

34 Group Revised Pay Scale SI.NO

01 I 5140-110-5690-140-6390-170-7240-200-8240 02 II 5250-110-5690-140-6390-170-7240-200-8240-240-9440 03 III 5690-140-6390-170-7240-200-8240-240-9440-280-10840 04 IV 5970-140-6390-170-7240-200-8240-240-9440-280- 10840-330-12490 05 V 6110-140-6390-170-7240-200-8240-240-9440-280- 10840-330-12490-400-14490 06 VI 6390-170-7240-200-8240-240-9440-280-10840-330- 12490-400-14490-500-15990 07 VII 7240-200-8240-240-9440-280-10840-330-12490-400- 14490-500-17990 08 VIII 8240-240-9440-280-10840-330-12490-400-14490-500- 17990-600-19190

35 PAY SCALE OF OFFICERS

W.E.F. 01.07.2008

I.NO Designation Revised Pay Scale

01 Jr. Officer 10000-100-10500-300-12300-350-14400-400- 16800-450-18150 02 Officer 10800-300-12300-350-14400-400-16800-450- 19500-525-20025 03 Asst. Manager 14050-350-14400-400-16800-450-19500-525- 22650-600-25050 04 Manager 18150-450-19500-525-22650-600-26250-675-26925

05 Asst. Gen. Manager 20025-525-22650-600-26250-675-28275

06 Dy. Gen. Manager 22125-525-22650-600-26250-675-30300 07 Gen. Manager 24450-600-26250-675-30300-750-31800 08 Director 26250-675-30300-750-34800-850-36500

THE COMPANY HAS FORMULATED THE FOLLOWING HR POLICIES:

1. Carrier Development Plan and Promotion Rules for Officers. 2. Time Bound Advancement Scheme for Unionized Cadre employees.

36 3. Standing orders applicable to Unionized Cadre employees. 4. KS&DL Conduct and Disciplinary Action Rules 1984 for Junior Officers and above. 5. Medical Attendance Rules. 6. Leave Rules with encashment benefit. 7. LTC / FTA. 8. Conveyance Allowance. 9. Education Advance. 10. Festival Advance. 11. TA / DA Rules. 12. HBA / Interest Subsidy. 13. Delegation of Powers. 14. Probationer’s Rules. 15. Annual Increment. 16. Incentive for adopting small family norms.

PROMOTION

In the company the Promotional Policy has twin objectives because the career planning is also included.

• Ensure high level of expertise and professionalism. • To create certain degree of mobility and job rotation. The employees below the rank of officers i.e. unionized cadre of employees are eligible for the promotion after satisfactory completion of seven and five years of service [Time Bound Advancement Promotion]. The promotion is based on their grading obtained in the performance done by their Supervisors.

The promotional policies for the officers divided into two categories. They are Career Development Plan (CDP) and Vacancy Based Selection (VBS).

CAREER DEVELOPMENT PLAN: Officers from Grade I to IV come under this plan. The ingredients of this plan are given below:

• Eligibility: Is a minimum of five years of service.

37 • Selection: Is done through staff selection committee. • Mode of selection: Is done through interview conducted by Staff Selection Committee once in a quarter. • Final selection: Of the maximum of 100 marks earmarked for selection 70 marks is allotted to the performance in the present

grade and the remaining 30 marks are allotted to the performance in the VIVA during the interview by the Staff Selection Committee. Out of the weight age, the individual has to score a minimum of 35 from the 70 performance marks and 15 from the VIVA marks to get the final selection.

VACANCY BASED SELECTION: Officers from Grade-V and above come under this plan. The promotion is effected only when there is a vacancy. The eligibility criteria is a minimum of five years in the present grade and due weight age is given to experience and qualification.

3.2 PRODUCTION DEPARTMENT:

STRUCTURE OF PRODUCTION DEPARTMENT

38 General Manager

Senior Manager

Manager Manager Manager

Deputy Manager

Works Manager

Senior Engineer

Engineer

Workers

KSDL has 3 main production plants: Fatty Acid Plant Soap Plant Detergent Plant

Fatty Acid Plant:

39 The basic raw materials, Oil & fats undergo the splitting & refining process including hydrogenation at the fatty acid plant. It is also obtained & used for soap making. The plant has a capacity to process 10,000mt of oils 1 fat. But currently it is been stopped due to heavy operating cost.

Soap Plant: The soap plant is one of the largest production plants in the country with an installed capacity of 26,000 ton per annum. KSDL’s soap plant has its uniqueness been in a position to process as many as ten different varieties of soap simultaneously. The sophisticated plant from Italy has a wholly integrated straight line facility that links up process sequence for higher productivity.

It is a stream line flow through right from raw material preparation to end of the line collation with the built in facility for continuous fat bleaching & saponification. The finishing touches are given or high tech universal wrapping machine. This high speed auto wrapper has the capability to handle soaps of virtually & size or shape.

Detergent Plant: It has installed capacity of 10,000 ton per annum. To produce spray dried, powder & a syntax plant for detergent cakes & bars. It produces industrial detergent which is used in the formulation of wettable pesticide powders for crop protection

3.3 MARKETING DEPARTMENT: 40 The company main products are soaps & detergents which are sold in different parts of India. There are depots at various places of the country which are controlled by seven branches. The role of each branch is to ensure that sales activities coming under their control.

Branch Depots

1. Bangalore Hubli, Raichur 2. Chennai Madras, Salem, Madurai, Cochin 3. Hyderabad Hyderabad, Vijayawade, Ananchapur 4. Mumbai Bhiwandi, Ahmedabad, Pune 5. Kolkatta Cuttack, Patna, Gauhati 6. Delhi Delhi, Jaipur, Jullundur

ORG: Operational Research Group report main source of marketing research private agency which study the competitors consumer demand, market etc that generates the report.

ORGANISATION CHART OF MARKETING DEPARTMENT

41 CHAIRMEN

MD

GM(MKTG

DGM(MKTG)

AGMAGM (Adv(Adv &Soaps)&Soaps) AGM(BB),AGM(BB), (CHE),(HYD)(CHE),(HYD)

PM(Det&PM(Det& M(MRIS) M (S) PM(CFGS)PM(CFGS) M(MRIS) M (S) Agb)Agb)

AM (S) AMAM AMAM AMAM AM (S) AM(A) AM

(Mktg) (CFGS)(CFGS) (Mktg)(Mktg) (MRIS)(MRIS)

Off (A) OffOff (CFGS)(CFGS) OffOff (S)(S)

JrJr OfficerOfficer JrJr OfficerOfficer JrJr OfficerOfficer Jr Officer

SrSr AsstAsst SrSr AsstAsst SrSr AsstAsst Sr Asst

Jr Asst Jr Asst Jr Asst Jr Asst Jr Asst Jr Asst Jr Asst Jr Asst

42 CHANNELS OF DISTRIBUTION: KSDL manufactures their products i.e. soaps & detergents. After this sent to various distribution points through agents. The stockiest sells to various retailers hence it reaches to the consumer

Manufacture (KSDL) CFGS

C&FA (Godown)

RD's Stockiest (Wholesalers)

Retailer

Consumers

As the company markets their products, it ensures that there is proper description of their product & its distinct features. So that the consumer can be position to understand its components.

EXPORTS:

43 KSDL export their products to different parts of world they are:

Australia Italy Srilanka Berlin Kenya USA Canada Malaysia Japan Czechoslovakia Saudi Arabia UK France Singapore Taiwan Germany Africa Holland

STRUCTURE OF EXPORTS DEPARTMENT

DGM

Manager PA

Asst. Manger Attender

Jr.Officer

Sr. Assistant

FUNCTIONS OF MARKETING DEPARTMENT:

44 1. Marketing Mix : it is the policy adopted by the manufactures to get success in the field of marketing

2. Product Policy: It includes both the turns of development & improvement produced and existing products. This all totally done by KSDL both marketing & R & D department.

3. Distribution Policy: The manufactured product of KSDL is supplier to the factory depots. There are various depots in various states & stored there.

4. Sales & Promotion: the drawback is poor advertising & sales promotion.

5. Packing: Uses different materials for different products, card board boxes synthetic covers.

6. Market Share: The KSDL production strategy is more expensive when compared to other product. At present company, holding market share of 18% in south India & 8% throughout India basis for premium soaps.

3.4 FINANCE, ACCOUNTS, AUDITING DEPARTMENTS

FINANCE DEPARTMENT STRUCTURE: 45 Managing Director

General Manager (Finance)

DGM (F)

AGM (F) / A/Cs/Audit/CE I/C

AM (PR&PF) PA to GM (F) A/Cs C E Supr(A/C’s)

Bills Section Costing Section JR.Officer JR.Officers SR.Asst Supr(costing)

JR.Officers (3) SR.Asst. SR.Asst. Officer

SR.Asst. SR.Asst.

SR.Asst.(1) JR.Asst. JR.Asst. JR.Asst. (V) Chief Mangaer (V) JR.Asst.

FINANCE:

46 It is the life blood of every organization. It is concerned with managerial decision making. This department is concerned with proper utilization of cash. It identifies the source of finance where to borrow i.e. ICICI, IRBI, IDBI, Corporation bank etc. It has abundant of function which can be enumerated as follows: • Effective funds management which is inverted in beneficial projects. • Decision making regarding fixing of cash account. • Obtaining trade credit. • Profit Maximization. • Wealth Maximization. • Preparation of cash budgets. • Systematic approach to working capital management. • Pricing of raw materials & valuation of stores. • To protect financial interest of the company.

AUDIT DEPARTMENT: KSDL audit wing is headed by interval auditor. Auditing is vital for the company as it facilitates verifying of all the books of a/c by trial balance, it also comply with requirements for central excise & income tax purposes. After the Auditor’s monitor everything they give report which is helpful to the company.

COSTING: When a company does costing it ensures proper fixation of selling price of the product, cost control it also help in taking decision. KSDL use process costing as the production mechanism is systematic it involves addition of a lot of ingredient in the manufacturin

TURNOVER FOR THE LAST 5 YEARS

47 YEARS Rs in Lacks 2004-05 10179.71 2005-06 11092.11 2006-07 11958.03 2007-08 14552.85 2008-09 16939.19

48 PROFIT DETAILS FOR THE LAST 5 YEARS YEARS PBT PAT 2004-05 -267.9 -267.9 2005-06 236.79 178.79 2006-07 433.57 358.56 2007-08 1179.35 1203.86 2008-09 1170.85 1168.14

49 3.5 RESEARCH DEVELOPMENT & QUALITY CONTROL KSDL its full fledged quality control & R&D single mindedly pursue quality enhancement. Both departments are headed by highly qualified professionals, committed to developing products that keep place with customers changing needs & perceptive. When doing Research they have a target which they get benefits & it enables the company to forecast the future.

AIMS: • Product process development. • Product process improvement. • Cost reduction • Alternative raw materials • Slow moving & non moving inventory reduction • Technical advice to the management.

Quality plays a very important role in KSDL majority of the products are consumer goods. So it must satisfy the consumer expectation. KSDL as 2QC division Raw material QC division Production QC division

OBJECTIVES OF R&D: • To improve the existing production • To adopt new methods of product development • To provide technical support for marketing department • To make improvement in the process of production • To administer & maintain technical library

50 3.6 STORAGE DEPARTMENT: In KSDL there are about 8 stores namely: 1. Packing Materials 2. Engineering Goods 3. Perfumery Stores 4. Oil & Fats Stores 5. Detergent finished goods stores 6. Fuel & Serviceable stores These stores play a great role in maintaining of required stock. It also facilitates maintenance of suitable store organization structure. It monitors the procedures of the receipt. Materials are issued on the basis of FIFO.

STRUCTURE OF STORAGE DEPARTMENT

Manager

Ast.Manager Officer

Jr. Assistant Sr. Assistant 1

Sr. Assistant 2

KS&DL has well- managed stores department for each of the three divisions viz, soaps, detergent & fatty acid division in the factory, there are separate miscellaneous stores department for raw material, finished goods and tools. Objectives; • Assuring the availability of raw material at right quantity. • Maintenance of economical and uninterrupted flow of production activities and finally to ensure minimum blockage.

51 • Achieving maximum efficiency in production and sales with least investment in inventory.

3.7 WELFARE DEPARTMENT: KSDL welfare department can be classified into 3 sections namely, 1. Statutory 2. voluntary 3. Non statutory

a) Statutory : KSDL welfare association is based on employees contributions, interest carved. • Canteen facility • First aid • Provident Fund

b) Voluntary benefit : • workers education class conducted by the central board • Inspection of fittings • Dust nuisance • Toxic gas nuisance

c) Mutual : • Employees get 3 pair of uniform at every 2 years & a Pair of shoes for every year • Cultural Recreations • Leave facilities • Employees Co-operative society which give loan on credit • Employees house building society.

52 3.8 MAINTENANCE DEPARTMENT: Effective maintenance is the goal of the company. The areas of maintenance are: • Mechanical Maintenance • Electrical Maintenance • Civil Maintenance

Proper maintenance results to: • Reduction of overload • Cost Reduction • Greater Safety of equipment & workers • Delivery schedule is maintained. This department contributes also working progress of the company.

DGM

Manager (civil) AGM (Electrical) AGM(Machinary)

Manager Manager

Contract based employees Jr.Officer Jr.Officer

Charge mans Charge mans

Workers Workers

53 Fitters&helpers Fitters&helpers

3.9) MATERIALS DEPARTMENT:

METERIALS DEPARTMENT STRUCTURE

CHAIRMEN

MD

DGM(Materials &stores)

MANAGER(Packing) OFFICER Sr. ASST(Perfumery) (Che/Oils)

AM (Engg/Misc) Sr. ASST (Oils/Che) Sr.ASST(Misc) Jr. OFFICER (Packing)

Jr, ASST WORKERS Jr, ASST Jr, ASST

54 Material department ensures that Materials are obtained at right time, right quality at right place from right source &at right cost which leads smooth flow of production.

Objectives: • Maintaining continuity of flow of materials • Effective control of inventories • Coordination • Growth of the organization • Maintaining ethical organization

To meet the objectives of the departments it has been divided into 5 sections:

• Oil & fats section • Perfumery & aromatically section • Packing materials section • Chemical section • Miscellaneous & Engineering stores section

The important work of this department is to choose the materials and conducting the auctions for purchasing of materials.

55 3.10) MANAGEMENT INFORMATION SYSTEMS DEPARTMENT:

A. Accounting System: Financial statements are prepared under the historical cost convention on an accrual basis and comply with the accounting standards refer to sec 211 (3c) of the companies Act 1956.

B. Costing System: Process costing.

C. Inventory Control System ABC analysis for stock control. FIFO method for issuing materials. Computerized accounting system for stores.

D. Remuneration System: 1. Time rate system is followed to employees. 2. Government fixes the remuneration to executives

E. Performance Appraisal System: Confidential report is prepared by heads of various departments for systematic judgment of the subordinate by authority to assess the standard of work & overall performance.

56 OBJECTIVES OF KS & DL: - . To serve the national economy . To attain self – reliance . To promote and uphold its image as symbol of traditional products . To promote purity and quality products and thus enhance age old – charm of Sandalwood Oil . To build upon the reputation of Mysore Sandal soap based on pure sandal oil. . To maintain the brand loyalty of its customer. . To supply the products mentioned above at most reasonable and competitive rate.

VISION STATEMENT:-  Keeping pace with globalization, global trends and the state’s policy for using technology in every aspect of governance.  Ensuring global presence of Mysore Sandal products while leveraging its unique strengths to take advantage of the current technology scenario by intelligent and selective diversification.  Secure all assistance and prime status from Government of India, all technology alliances.  Making all out efforts to achieve reasonable profits.  Most importantly to earn the invaluable foreign exchange, both to the state and to the country.

MISSION STATEMENT:- • To serve the National economy. • To attain self-reliance. • To promote purity & quality products • To maintain the Brand loyalty of its customers.

57 • To build upon the reputation of Mysore sandal soap based on pure sandal oil.

SWOT ANALYSIS STRENGTHS • The factory is located in the heart of the city & has all infrastructure facilities, which helps in quick movement of raw materials & finished products. Due to its proximity, habitation, movement of men and material are easy.

• It is fully owned by Govt. of Karnataka so in times of financial crisis it can easily get the financial support from government.

• A very little competition for its major products sandal soap.

• An ISO 9002 certified company has its own brand image.

• An ISO 14001 company, which commits to reserve the natural environment in the production of its quality products to the satisfaction of its customers.

• Diversified product range keeps the company stable.

• Abundant availability of raw materials at present.

58 WEAKNESS • Excessive labor force has increased the operating cost.

• Low turnover resulting in low profits.

• Defective marketing strategy lacks effective advertising and publicity.

• Technology used for production is old and needs up gradation.

• R&D is not effective in reducing the cost of production.

• The large proportion of the target area is upper middle class and upper class people, it has very few offers to lower middle class.

• Unskilled labor force hampering the growth.

OPPORTUNITIES: 1. The toilet soap and the detergents market is an ever expanding industry and a major company like KS& DL with its manufacturing expertise can grab the market if it reaches peak manufacturing capacity.

2. Company has a great opportunity to expand its market share by increasing exports.

3. At present it has Good raw material sources to enhance production.

THREATS:

59 1. Competition from other global leaders like HUL.

2. Government interference may reduce growth potential.

3. Company has the threat of facing shortage of raw materials like sandal wood. FINDINGS: • It is a company wholly owned by government, so it has to follow the rules made by the government.

• The company is under utilizing its capacity.

• Its production is based on old technology, which leads to more wastes in the production process.

• Consumer awareness of its products is very less except for Mysore Sandal soap.

• Its products are not easily available outside Karnataka.

• There is mismatch in production & sales activity.

• Recruitment in the company has been stopped since 1988 due to excess labor force and taking place only in some department like marketing.

SUGGESTIONS & RECOMMENDATIONS:

Karnataka Soaps and Detergents Ltd, has a wide variety of products but people are unaware of many products like Agarbathi, Detergents, Baby soaps etc. as its marketing is very weak. So it should spend both money and man power on advertising. They should also improve in building up the strong marketing strategy in order to improve the distribution channels and could be able to increase the sales other then the Mysore Sandal soap.

60 Thus the R&D should work effectively to introduce new products and can make the company to earn more profits. The management should design Training and development programs and Career Development programs and identify the skills and knowledge. The company should follow the policy of right man for the right job. Since they are not doing any recruitments from outside, options available for them is limited. So they have to appoint well qualified innovative people to take the company forward. Books referred:-

61 1. Accounting for managers , Author: khan, jain and narang Edition:

2. Production and Operations management Author:K. Ashwathappa and K.Shridhar Bhat Edition:

3. Marketing management . Author : Philip Kotler. Edition : 12th Edition.

4. Human Resource Management Author: Edition:

Website www.mysoresandal.co.in www.wickipedia.com

ANNUAL REPORT OF KSDL Operational performance

62 Production :- Total – Rs. 17,460.20 lakhs as against Rs. 14256.86 lakhs in the previous year

Actual production in metric tons SI Class of Goods 2008 – 09 2007 – 08 No 01 Soaps 7199.810 6452.917 02 Detergents 2814.466 1871.497 03 Sandal wood oil 1.068 1.152 04 Agarbathies 245.095 208.661 05 Talcum Powder 162.198 158.536 Sales :- Gross = Rs. 19,006.53 lakhs as against Rs. 16,247.74 lakhs and Net = Rs. 16,939.19 lakhs as against Rs. 14,552.85 lakhs in the previous year. Sales (Rs. In Lakhs)

2008 – 2009 2007 – 2008 SI Class of Goods Quantity in Value Quantity in Value No M tons M tons 01 Soaps 7555 14,808.29 7097 13,006.38

02 Detergents 2813 914.96 2007 577.54

03 Sandal wood oil --- 28.37 --- 28.63

04 Agarbathies 395 588.88 20 6 578.65

05 Talcum Powder 170 262.61 181 323.77

06 Other --- 336.08 37.88

TOTAL 16,939.19 --- 14,552.85

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 ST MARCH 2009

PARTICULARS AMOUNT

63 Rs. Rs. INCOME Sales 1,69,39,19,368 Less: Excise duty 16,02,15,837 Net sales 1,53,37,03,531 Other income 6,06,23,797 1,59,43,27,328 Increase/(-) Decrease in stock 7,03,74,213 1,66,47,01,541 EXPENDITURE Materials Consumed 801928343 (include trading items) Other Expenditure 73,44,42,910 Depreciation 39,69,038 1,54,03,40,291 Operating Profit /Loss 12,43,61,250 Less: Interest and Finance Charges 72,76,261 PROFIT BEFORE TAX 11,70,84,989 Less: Provision for Taxation (i) Current Tax 1,85,00,000 (ii) Fringe Benefit Tax 21,28,828 Deferred Tax Asset 2,03,58,318 PROFIT AFTER TAX 11,68,14,479

Prior Period Income /(-) 1,40,78,609 Expenditure

Tax of earlier year ---- 13,08,93,088 Profit/Loss brought forward previous 13,68,26,041 year Profit /Loss Carried to Balance Sheet 26,77,19,129

The Company earned EBIT (operating profit) of Rs. 4,80,05,540. The profit for the year before tax (EBT) has been Rs.4,33,57,146. The Net Profit (after providing tax) carried over to Balance Sheet was Rs. 1,50,70,294. BALANCE SHEET AS ON 31 ST MARCH 2009

64 PARICULARS 31/03/2009 31/03/2008

Rs. Rs. Rs. Rs.

SOURCES OF FUND: 1. Share holders Fund: (a) Share Capital 31,82,21,000 31,82,21,000

(b) Reserves & 26,77,19,129 ---- Surplus 2. Loan Fund:

(a) Secured Loan 10,72,04,608 1,03,65,536

(b) Unsecured 8,35,06,504 19,07,11,112 8,99,95,436 10,03,60,972 Loans TOTAL 77,84,20,599 55,54,08,013

APPLICATION OF FUNDS: 1. Fixed Assets

(a) Gross Block 30,96,23,620 29,61,06,154

Less: 23,98,47,860 23,70,50,829 Depreciation (b) Net Block 6,97,75,760 5,90,55,325

2. Investment 100 100 3.Deferred 5,25,04,866 3,21,46,548 Tax Assets

4. Current assets Loans & Advances (a) Inventories 40,74,52,487 29,60,12,822

(b) Sundry 16,35,29,618 14,63,46,670 Debtors (c) Cash & Bank 25,51,32,910 33,43,85,423 Balance (d) Loan & 21,52,57,572 10,49,44,640

65 Advance (e) Investment 5,00,00,000 1,09,13,72,587 3,00,00,000 91,16,89,555 In gratuity trust Less: Current Liabilities & Provisions (i) Liabilities 24,66,50,794 30,87,52,365

(ii) Provision 20,49,56,560 45,16,07,354 16,67,70,640 47,55,23,005

Net current 63,97,65,233 43,61,66,550 assets 5. Miscellaneous 1,63,74,640 2,80,39,490 Expenditure 6. Profit & loss ------Account ----- Total 77,84,20,599 55,54,08,013

66 67