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ORGANIZATION STRUCTURE TRAINING
AT
KERALA ELECTRICAL AND ALLIED ENGNEERING COMPANY LIMITED
A Report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration
By
AISHWARIA PAUL
REGISTER NUMBER
1827834
Under the Guidance of
PROF. BIKRAMADITYA GHOSH

Institute of Management
CHRIST (DEEMED TO BE UNIVERSITY), Bengaluru
ORGANIZATION STRUCTURE TRAINING
AT
KERALA ELECTRICAL AND ALLIED ENGNEERING COMPANY LIMITED
A Report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration
By
AISHWARIA PAUL
REGISTER NUMBER
1827834
Under the Guidance of
PROF. BIKRAMADITYA GHOSH

Institute of Management
CHRIST (DEEMED TO BE UNIVERSITY), Bengaluru

Declaration
I hereby declare that the Organization Structure Training report on Kerala Electrical and Allied Engineering Company Limited, has been undertaken by me for the award of Master of Business Administration degree. I have completed this study under the guidance of Prof. Bikramaditya Ghosh.

I also declare that this Organization Structure Training report has not been submitted for the award of any Degree, Diploma, Associate ship, Fellowship or any other title, in CHRIST (Deemed to be University) or in any other university.

Place: Bengaluru Signature___________
Aishwaria Paul
Date: 1827834

Certificate
This is to certify that the Organization Structure Training report submitted by Aishwaria Paul is a record of work done by her during the academic year 2018-19 under my guidance and supervision in partial fulfillment of the requirements of Master of Business Administration degree.

Place: Bengaluru Signature___________
Prof. Bikramaditya Ghosh
Institute of Management
CHRIST (Deemed to be University)
Date: Bengaluru
Acknowledgment
I am indebted to all the people who helped me accomplish this Organization Structure Training successfully.

First, I thank the Vice Chancellor Dr. Fr. Thomas C Mathew, CHRIST (Deemed to be University) for giving me the opportunity to do my project.

I thank Dr. Sunithi Phadke, Dean, Prof. Georgy Kurien, Associate Dean, Prof. Shrikanth Rao, Head of the Department, Institute of Management, CHRIST (Deemed to be University) for their kind support.

I thank Prof. Bikramaditya Ghosh for his support and guidance during my training. I remember him with much gratitude for huis patience and motivation, but for which I could not have submitted this work.

I wish to express my sincere thanks to my corporate mentor, Mrs. K. R. Sreekumari, Manager, Personnel Administration, Kerala Electrical and Allied Engineering Company Ltd., for giving me an opportunity to work under her guidance and successfully complete my training.

I thank my parents for their blessings and consistent support, without which this training would not have seen the light of day.

Aishwaria Paul
1827834
Synopsis
The organization study at Kerala Electrical and Allied Engineering Company (KEL) is an attempt to study the management as well as the functions of various departments of the organization. It also includes the study of products and other activities of the organization, and attempts to provide suggestions or recommendations for improving their structure.

The study is restricted to the exploration of various functions of one out of the four units of the company. The study is based on the functioning of Mamala unit and the other units are KEL Olavakkode, KEL Kundara and KEL Edarikode. The study is conducted with the data collected through the internet, books, previous records, direct interviews and detailed interactions.

Data collection for the study was through primary and secondary sources. Primary data is the data that is collected through the direct interactions with the employees and managers of the various departments of the organization as well as through the observations made during the period of study. Secondary data is the data that is collected from various references, websites, KEL annual reports, enquiries, manuals, brochures etc.

The study is mostly conducted with the help of annual reports, journals, brochures, departmental manuals etc. as the company did not reveal some official reports and documents as it is kept confidential.

Chapter No. TABLE OF CONTENTS Page No.

1 INTRODUCTION TO ORGANIZATION 2 ORGANIZATION STRUCTURE 3 FUNCTIONAL DEPARTMENTS 4 FUNCTIONAL HIGHLIGHTS ACROSS KEY RESULT AREAS 5 FINDINGS, RECOMMENDATIONS AND CONCLUSIONS REFERENCES/BIBLIOGRAPHY Table No. LIST OF TABLES Page No.

1 History of organization 2 Projects 3 Shift Timings 4 Balance Sheet – March 2017 5 Profit and Loss Statement – 2017 Figure No. LIST OF FIGURES Page No.

1 Organization Chart 2 Structural Division 3 Transformer Division 4 Flow Chart – Planning Process 5 Flow Chart – Transformer Production 6 Flow Chart – Structural Division Production 7 Flow Chart – Design Department 8 Flow Chart – Selection Process 9 Flow Chart – Marketing Process CHAPTER 1
INTRODUCTION TO ORGANIZATION
HISTORY OF THE ORGANIZATION
Name Kerala Electrical and Allied Engineering Company Ltd.

Address KEL,
7th Floor, KSHB Office Complex
Panampilly Nagar
Kochi-682036
Kerala, India
Total Land 13.10 Acres
Utilized Land 11.10 Acres
Sales Manufacturers of Distribution Transformers and heavy structural Steel Fabrication
Number of Employees
183
Level of Expand
International
Registered Office KEL
KSHB Office Complex
Kochi-682036
Kerala, India
Kerala Electrical and Allied Engineering Company Limited (KEL) was established in 1964 in the State of Kerala, India, and is a multifaceted company fully owned by the State government. Through its four production facilities, located in various districts of the State, this ISO 9001:2000 Complaint Company provides basic engineering services/products besides executing projects of national significance for high profile clients like the various defense establishments.

KEL is one among the largest, most vibrant and productive Public Sector Undertaking and is fully owned by the Government of Kerala. It is a multi-product engineering company with 50 plus years of experience and expertise in Engineering industry, and now proudly serving an envious client base including Defense, Irrigation and Power Projects, Space Research Organizations, State Electricity Boards, Indian Railways and the general public both in India and abroad. The company has four state-of-the-art manufacturing units spread across Kerala and has a pan India presence with its Sales and Service unit in all the major metros and selected cities.

The regional office of the KEL is situated at Panampilly Nagar, Cochin. The company has wide range of offices and service centers located in most of the major cities and business centers in India for effective marketing and to provide efficient after sales service for the product. The major regional offices are located at New Delhi, Kolkata, Mumbai, Chennai, Bangalore, Hyderabad, Cochin and Trivandrum.

Vision
To be globally recognized enterprise committed to enhancing stakeholder value by providing world class engineering and power system solutions.

Mission
Applying the state-of-the-art technology, processes and innovative solutions
Building long term relationship with stakeholders in an environment of fair business ethics and values
Creating value through sustainable and profitable growth
Leveraging productivity through highly motivated and empowered team
Objectives
To carry on the business of electrical, mechanical and structural engineers, metal founders.

To manufacture and deal in all types of engineering equipment.

To manufacture all types of electrical apparatus and appliances required capable of being used in connection with the generation, distribution, apply of electricity and to buy, sell, import, export or otherwise dealing such machinery apparatus, appliances.

Strategies
Maintain uncompromised product quality
Deliver durable and reliable products
Establish experienced technical competency
Skilled workforce
Maintain fairness, transparency and integrity
Be responsive and provide courteous service
Market Potential
In all India level, KEL will be contributing to 2% need when its production is 100%. In the state level, KEL’s marketing potential is around 35-40% of the market requirement. Further in India, the power requirements are always on the rise. The government has also from time to time sets some targets to achieve regarding the power generation, transmission and distribution. This in turn boosts the market potential for KEL’s products.

Competitors
Main competitors are:
At National Level:
Kirloskar, Bangalore
Indotech, Chennai
Crompton Greaves, Chennai
At State Level:
Intrans Electro, Ernakulam
TELK, Angamaly
PROFILE OF PRODUCTS AND PROJECTS
Transformer Division at Mamala Unit
Distribution Transformers upto and including 11kV, 22kV, 33kV Class
Corrugation Transformers upto 11 kV, 22kV, 33kV Class
Solar Transformers
Amorphous Transformers
Medium Power Transformers upto 8000 kVA, 33kV Class
Special Application Transformers such as EMU, LOCO Transformers for Railway application.

Dynamic Reactive Power Compensation and Furnace Transformers
A new Plant for the Production of Power Transformers upto 25MVA, 132kV Class, is nearing its completion
Structural Engineering Division at Mamala Unit
Design, Execution and Maintenance of Hydro- Mechanical Equipments such as Gates, Hoists, Penstock Pipes
Supply and laying of Aerial Bunched Conductors(ABC)
Design and Execution of Dam Safety Equipments
Manufacture and supply of Bogie Frames, Bogie Bolster and Headstocks for Railway coaches and wagons
Design and construction of Lattice Bridge
Design and construction of Suspension Bridge
Design and construction of Industrial and Commercial Buildings
Renovation of Tourism Centers by providing Children’s Park, Light arrangements, providing Amenity Centers to attract Tourists
Setting up of Online Examination Centers all over Kerala for PSC
Construction of roads and other Civil works
Train Lighting Alternator division at Kundara unit
Inductor type brushless alternator for train lighting and Air-Conditioning – 1 kW to 40 kW with RRU/ERRU
12kW alternators specially designed for powering Janashadabdi Express Trains of Indian Railways.
Inductor Type brushless alternator for automobile and for charging systems in diesel engines- 12V, 24V upto 50A.
High frequency alternator- 400Hz; upto 100kVA.
Ground power units for starting Avro and Dornier aircrafts and for powering Boeing aircrafts.
Ground support units with dual voltage system for starting fighter aircrafts.
DC, AC power frequency and high frequency power pack for missile firing auxiliary power support.
BLDC Fan
General Purpose Diesel Generator Sets
LT Switchgear division at Olavakkode Unit
Fuse switches
Changeover switches
Porcelain Fuse Units and Cutouts
Distribution fuse boards and industrial type switch boards
Distribution Boards (SPN ; TPN 2 to 16 ways)
Cast resin Transformer division at Edarikode Unit
Cast Resin transformer(CRT) up to 1600 kVA
Vacuum Pressure Impregnated Transformer(VPI) up to 1000 kVA
Oil Immersed Distribution Transformer up to 500 kVA
Projects
The main projects done by KEL are:
Project Name Client Nature of Work
Falcon Missile Project R ; D (Engrs.), Pune Vehicle mounted 62.5 kVA, 415 V, 50 Hz, 3-phase DG set
Trishul Missile Project DRDO 50 kVA Dual Output DG Set
Prithvi Missile Project R ; D (Engrs.), Pune 2 kW, 3000 rpm DG Set
Pinaka Project L ; T 8 / 12 kW, 30 V, 400 A Alternator
Akash Missile System BEL 75 kVA, 220V, 400 Hz Battery Power Source Vehicle
Military Power Car Army Battery Chargers of Battle Tanks
General Air Force 20 kVA, 415 V, 50 Hz, 3- phase alternators
General Army 30 kVA, 220 V, 50 Hz, 3- phase alternators
Radar Application Air Force 100 kVA, 220 V, 400 Hz, 3- phase alternators
Radar Application Air Force 250 kVA, 400 V, 50 Hz, 3- phase alternators
Power Cars of Rajdhani ; Shadabdi Express Indian Railways 500 kVA, 750 V and 250 kVA, 750 V alternators
Ground Power Unit Defence 70 kVA Trolley mounted Ground Power Unit
Antartica Expedition Indian Navy 10 kW, 400 Hz, alternator
Traction Alternator BHEL/ Railways 200 kW Traction Alternator
Medium Power Transformer NPP, Kudankulam, Tamil Nadu 3000kVA, 11/6.3 KV Transformer
Medium Power Transformer Travancore Titanium Products Ltd., Kerala 2000kVA, 11/0.433 V OLTC Transformer
Unitised Sub-Station Guruvayur Devaswom 160 kVA, Dry type packaged Sub-Station
Gerusoppa Dam, Karnataka KPCL Hydro-mechanical works- Penstock, stop log gate, gantry crane, hoist
Upper Tunga, Karnataka KNNL Radial gates, rope drum hoists, stop log gate, gantry crane
Mansi Wakal, Udaipur, Rajasthan ITD Cementation Radial gates, vertical gates, stop log gate, hoists
Narmada Project, Gujarat J P Associates Slide gates
CSR Activities
KEL being a public sector company has always ensured that the activities performed by them provide service to the society. Every year the company conducts medical checkup at Mamala as part of their CSR activity. They have also played a significant role in the construction of Mamala L.P School. Recently the company also constructed the Mamala Bus Stop.

CHAPTER 2
ORGANIZATIONAL STRUCTURE
The company has four manufacturing units located in various parts of the state.

KEL Train Lighting Alternator Division, Kundara, Kollam
Inception: 1964
Top Customers:
Indian Railways
BHEL
Crompton Greaves Ltd.

BEML, R ; DE (Engineers), Pune
BDL Hyderabad
KEL LT Switch Gear Division, Olavakode, Palakad
Inception: 1977
Top Customers:
KSEB (Re-wirable Fuse Units)
Other Units of KEL (Al/ Bronze Castings)
KEL Transformer Division, Mamala, Ernakulam
Inception: 1969
Top Customers:
State Electricity Boards
Government Departments
Public and Private Sector Companies
KEL Transformer Division, Edarikode, Malappuram
Inception: 2010
Top Customers:
R ; DE ( Engrs.), Pune
DRDO
L ; T
BEL
Indian Railways
KEL Structural Engineering Division, Mamala, Ernakulam
Inception: 1969
Major Projects Undertaken:
Gerusoppa Dam, Karnataka for Karnataka Power Corp. Ltd.

Hydro-Mechanical works- Penstock, stoplog gate, gantry crane, hoist
Upper Tunga, Karnataka for Karnataka Neeravari Nigam Ltd.

Radial gates, rope drum hoists, stoplog gates, gantry cane
Mansi Wakal, Udaipur, Rajasthan for ITD Cementation India Ltd.

Radial gates, vertical gates, stoplog gate, hoists
Narmada Project for J P Associates
Slide Gates
Bogie frames for BFAT Wagons for BEML
Bogie frames for EMU Coaches for ICF
ORGANIZATION CHART
1855851188341GM PERSONAL AND ADMINISTRATION
00GM PERSONAL AND ADMINISTRATION

90487525408858252540
275240984772SENIOR MANAGER
00SENIOR MANAGER
2152650246380142938564770GM STRUCTURAL
GM STRUCTURAL
1067308198564GM MARKETING
00GM MARKETING

28670253238521336003810
91440075565
1159700189230GM FINANCE
00GM FINANCE

90487595250
2827020140334SR. MANAGER TRAINOR/MR
00SR. MANAGER TRAINOR/MR

1175068137859GM MAMALA
00GM MAMALA
87782418732500-672719317246CHIEF MANAGING DIRECTORS
CHIEF MANAGING DIRECTORS
-1425956310769BOARD OF DIRECTORS
BOARD OF DIRECTORS
762000196215-7238191262
301752085471299923285471213969630607
197281870358913130121158
1133730197230GM KUNDARA
00GM KUNDARA
3042348176339MANAGER QA
00MANAGER QA

91440014630500301752049657
1056958226124GM OLAVAKODE
00GM OLAVAKODE
3061843197485ASST. MANAGER P ; A
00ASST. MANAGER P ; A

1447038118110GM TRANSFORMER
GM TRANSFORMER

956564103632303580865405299872483185288950465405215633317399
1049974228917GM EDARIKODE
00GM EDARIKODE
3043300177927MANAGER F ; A
00MANAGER F ; A

959294164719304088831750
1097599219582GM PROJECT
00GM PROJECT
3018852221679DGM/WORKS
00DGM/WORKS
9144006972302999232637032
STRUCTURAL DIVISION

The structural division of KEL in Mamala unit, specialized in the design, fabrication and commissioning of hydraulic gates and hoists and their controlling equipment used in dams for power and irrigation projects.

The KEL structural division undertakes the design and construction of steel bridges, factory buildings, storage tanks, fabrication of pressure vessels and other industrial steel structures, as per customer specification. For the Railways, KEL undertakes the fabrication and manufactures of bogie frames, bogie bolster and head stocks for railway coaches and wagons.

TRANSFORMER DIVISION
The Transformer Division of KEL at Mamala, Ernakulam, was established in 1969, with the technical assistance of BHEL, to manufacture supreme quality transformers, for various State Electricity Boards, Government Departments, Public and Private Sector Companies.

The KEL Transformer Factory is one of the first few transformer factories in India, to get ISO 9001 Certification. Over the years, relying on unmatched quality of KEL Transformers, electricity boards across India perfectly maintained a healthy power distribution supply system. Manufacturing customer-built transformers for specific requirements, is at another specialty of KEL.

Through in-house R;D efforts, KEL Transformers were customized to suit stringent requirements and trends and continue as an on-going process to deliver specific transformer types and designs of various ratings. In this pursuit of excellence, the resourceful design department of KEL uses state-of-the-art software to design world-class transformers, optimized for maximum reliability, durability, and energy efficiency, compatible to the standards set by the Bureau of Energy Efficiency (BEE).

10191755715000
CHAPTER 3
FUNCTIONAL DEPARTMENTS
PLANNING DEPARTMENT
Planning is one of the important functions of the management. The main function of the planning department is to plan and schedule for the production and dispatch. In the transformer division the planning section holds the fundamental function of planning for each stage in the manufacture of transformer whereas in the structural division the planning is done based on the sale order from the marketing and design department.

POLICY
To establish and maintain a documented procedure for planning the production, availability of materials and schedule of dispatches for enabling the organization to provide the right product and services at the right time, every time as per the customer requirements.

OBJECTIVES
To reduce inventory carrying cost with respect to turnover
To increase material availability with respect to turnover
FUNCTIONS
Production planning and materials planning
Monitoring program against work order
Make an adequate planning for production process
Ensuring planning is goal oriented
1990725346075START
00START
FLOW CHART OF PLANNING PROCESS
1920875486410QUATERLY PLAN
00QUATERLY PLAN
39636701254760Monthly Production Plan
00Monthly Production Plan
527051290320Monthly Plan
00Monthly Plan
23825202042160Preparations of Work Ordered and issue to various departments
00Preparations of Work Ordered and issue to various departments
26790652964815Raising PR for ‘A’ Value items
00Raising PR for ‘A’ Value items
23825203866515Monitoring production and analyzing of short fall
00Monitoring production and analyzing of short fall
2546352042160Production
MMD
Store
00Production
MMD
Store
29305254498340Short fall if any
00Short fall if any
260985025273000614680115252500469963511169650061468011169650026098508382000069786518561050041649651677670006978651677670002762250185610500342900026162000034290003434715003429000433641500
-490220177165Request for DP. Extend to Marketing department
00Request for DP. Extend to Marketing department
133540538227000Yes
345757599060No
344805030162500254825514605Despatch as per schedule
00Despatch as per schedule

295529081280END
00END

PRODUCTION DEPARTMENT
KEL has two production units which are Transformer division and Structural division.

FUNCTIONS
They issue work order and amendments
They coordinate release of drawing and bill of material
They make sure the work allocation is done in an effective manner
They check the progress of work
They ensure that the work is progressing for achieving the target
They maintain the quality of product
They carry out the preventive and break down maintenances
TRANSFORMER DIVISION
POLICY
To provide right products at the right time which results in customer satisfaction through team work.

OBJECTIVE
To establish and maintain a documented procedure for carrying out the activities of production.

Right Product:
Reducing the Rework/ Rejection / In-house failures. Reducing rework/failures by 25% at the following stages:
Shaft ground.

End shield/turned/drilled.

High Voltage Test/Wound frames.

Testing of Alternator with Rectifier regulator unit.

Right Time:
Achieving better on-time delivery by increasing the number of satisfied customers by 85% within the next three months and 90% within one year.

Team Work:
Improving employee involvement and team work through generation of two suggestions per quarter and implementing a minimum of two improvement projects per year.

TRANSFORMER PRODUCTION PROCESS
There are nine stages in manufacturing a transformer. In each stage a supervisor controls the activities in that particular stage:
End Frame Fabrication
In this stage the frame is cut in the shape of ‘E’. Silicon steel is cut in an ‘E’ shape for frame fabrication.

Insulation and Assembly
The insulation is done in core building, HV and LV winding. The press board is used for insulation works. Insulation helps to overcome the occurrences of short circuit.

Core Building/Assembly
The core is laminated with CRGO (Cold Rolled Grain Oriented) lamination due to which the core is free from any short circuit.

HV Winding
The conductors are wound and insulated with double paper grade strip winding which produces high voltage electricity for transmission and distribution.

LV Winding
Low voltage coil is wound with double paper grade strip. This strip reduces the possibility of short circuit. This coil consists of low voltage electricity which comes from outside.

Terminal Gear Mounting
The LV winding terminals are fixed into a bush. The terminal gear is built with copper or aluminum.

Tanking
The fabricated tank has been made available through sub contracts from the structural division. The dried TG mounted coils are put in the tank and filled with oil. Then tightening takes place.

Final Testing
When the production process is completed the ISO prescribed tests are conducted by the company supervisor.

Painting and Dispatch
In this stage the approved transformers are painted based on single order or bulk order and then finally dispatched. Sometimes in this stage the customer may inspect the transformer. Once the payment is made by the customer, dispatching the transformer is done as per the specification of the tender.

MAIN RAW MATERIALS OF PRODUCTION OF TRANSFORMERS
Core
Copper
Mild Steel
Press Board
Transformer Oil
5048251228725-19050890270QA CHECK
00QA CHECK
485775638175-19050314325LAMINATION
00LAMINATION
FLOW CHART TRANSFORMER PRODUCTION
5553075325755481965020955WINDING CONDUCTOR
00WINDING CONDUCTOR

5029200272415QA CHECK
00QA CHECK
2352675222250INSULATION COATING
00INSULATION COATING

55530752908303048000214630
5572125520700370522588265037052253206755019675196850WINDING
00WINDING
914400720725904875892175504825692150-28575177800CORE BUILDING
00CORE BUILDING
-857251018540QA CHECK
00QA CHECK
5048251311275-3524251549400END FRAME FABRICATION
00END FRAME FABRICATION
10477504540251152525311150005286375494030036766504930775308610067214753076575620712530861005664200312420051022253114675455930031146753987800311467534067753095625286385030956252282825309562516637003076575106362530670504730752514600158750QA CHECK
00QA CHECK
2514600739775ASSEMBLY
00ASSEMBLY
25336501361440INITIAL DRIYING
00INITIAL DRIYING
25241251968500REBLADING
00REBLADING
25336502540000QA CHECK
00QA CHECK
21431253082925TERMINAL GEAR MOUNTING
00TERMINAL GEAR MOUNTING
25431753666490QA CHECK
00QA CHECK
25431754235450FINAL DRYING
00FINAL DRYING
56483254768850 TANK
00 TANK
41148004780915QA CHECK
00QA CHECK
25241254787900TANKING
00TANKING
25146005349875FINAL TESTING
00FINAL TESTING
25050755892800 PAINTING
00 PAINTING
25050756419215QA CHECK
00QA CHECK
24955506933565DESPATCH
00DESPATCH

STRUCTURAL DIVISION
POLICY
The policy undertaken by the production department is: “To establish customer satisfaction through proper planning, manufacturing, installation and commissioning, as per specification”.

OBJECTIVES
To reduce rejection by minimizing welding defects and to reduce wastage of materials by using scraps available.

MACHINES USED
Gear Hobbling Machine – It is used for gear cutting
Milling Machine – Slots, plane milling etc used for cutting
Lathe Machine – For forming Tread
Vending Machine – Used for 12mm pipe bending
Gillette Machine – For cutting palates upto 12mm
Press Breaker Machine – Plates blending 90 degree the capacity upto 12mm
Drilling Machine – Used for drilling the plates
Mug Welding – It is used for welding
MAJOR PRODUCTION PROCEDURE
Marking
Cutting
Drilling
Threading
Bending
Setting
Assembly
Welding
Surface Preparation
Straightening
Painting
Keeping
FLOW CHART STRUCTURAL DIVISION PRODUCTION
24479241278255246697560198040005001097280 SETTING
00 SETTING
400050040005MARKING
CUTTING
STRAIGHTENING
CU
00MARKING
CUTTING
STRAIGHTENING
CU
12573007924801257300146875512763504516755126682535737801247775286893012573002164080133350430530MATERIAL PREPARATION
00MATERIAL PREPARATION
1238251104900 ASSEMBLY
00 ASSEMBLY
1333501802130WELDING
00WELDING
1238252506980MACHINING
00MACHINING
1333504791075DESPATCH
00DESPATCH
1333503211830CLEANING AND PAINTING
00CLEANING AND PAINTING
3429003869055INSPECTION
00INSPECTION

QUALITY ASSURANCE DEPARTMENT
The main function of the quality assurance department is to test the quality of the product. They should ensure that the products delivered are of good quality. KEL has established, documented, implemented, maintains and continuously improves its quality management systems, with the requirements of ISO 9001:2000.
POLICY
Quality policy of Quality Assurance Department is to ensure the quality of materials/components to the concerned areas for further processing.

OBJECTIVES
To reduce the quality related customer complaints after the delivery of products.

FUNCTIONS
Approval of sub contract
Carry out sub-contractor performance evaluation
Identify non-conforming products
Stop further processing of non-conforming products
The methods used by the department are:
Receiving, inspection and testing
In process inspecting and testing
Final inspection and testing
Calibration of the equipment
Inspection and testing status
Control, review and disposition of non-conforming products
Application of statistical techniques
Corrective action review
Release of final products
QUALITY VERIFICATION
Quality testing is done at Quality Assurance Department at three stages. They are:
Incoming material.

Incoming process.

Final testing.

In the first stage, they verify every incoming raw material against the relevant ISO specification. When the material fails to meet the criteria, the whole lot of batch is rejected, however when the material is required urgently, the department will reject only the facility item.

In the second stage, the production department offers the materials as various hold points for verification, then QAD checks the products and maintains a record of conformity.

Final test for the reliability is carried out by KEL, on all Alternators and Regulators as per specification given by RITS and BIT. Its intended operation will be verified for a specified period of time under certain experimental condition. No products shall be dispatched until activities specified in quality plan or documented procedure has been completed
When materials arrive from suppliers, it arrives with a test certificate certifying the quality of product. In case of well-known suppliers like SAIL the certificate is accepted and no further quality testing is done. In other vendors testing is compulsory. The test conducted in the quality departments have to meet certain criteria according to ISO 9001:2000 regulations.
DESIGN AND DEVELOPMENT DEPARTMENT
The design department draws the structural design of the product processes for the production department. Based on the design the transformer is produced with the specifications of the customer.

POLICY
The main policy of the design department is: “To establish a process for an optimum design conforming to customer requirement and relevant standards within a specified time”.

OBJECTIVE
Reduction of design errors and re-work
Computerizations of the design work atleast by 25% and subsequent improvement.

FUNCTIONS
Receive the sale order from marketing
To ensure the standards of the design
Receipt of tender documents from marketing
To ensure that the completion of design work is within the specified period of time
Establish and maintain the process for the design work by taking the requirements of customers
Ensure that the feedback is forwarded to the production department
Design planning, controlling, responsibility assignment, input and design storage reviews.

Authorizing, designing, verification and initiating design changes
Approve design outputs
DESIGN STAGES
STAGE I: Preliminary design for marketing quotation
Studies the specifications for the product included in specific tender received from the marketing department.

Enquires the current price of raw materials and components from materials department.

Estimates the cost for the product as per the technical specifications furnished by the marketing department.

Sends the cost and guarantees technical specifications to the marketing department for tendering purposes.

STAGE II: Actual Design of Product
Receipt of sale order from marketing department
Issue of advance intimation to production planning
Make the detailed design and drawings as per the order
Issue of production drawings, specifications and list of drawings planning
Feedback from the production department to design on time for manufacturing the product with customer specification
Feedback from the test result from quality assurance –test is normally conducted in the presence of the customer consultant or representative and recorded and kept in file for future reference by the design department
Design change intimation to planning from design
FLOW CHART DESIGN AND DEVELOPMENT
542861528765500160972559055TENDER ENQUIRY FROM MARKETING DEPARTMEENT
00TENDER ENQUIRY FROM MARKETING DEPARTMEENT
1800225805815Feasibility Study
00Feasibility Study
18478501457325Order and Specification
00Order and Specification
12287252057400Review
00Review
31623002057400Customer Feedback
00Customer Feedback
857252548890Design Plan
00Design Plan
285753194685Collection ; Review of Design Inputs
00Collection ; Review of Design Inputs
857254109720Verification
00Verification
857254799330Planning
00Planning
9944104799330Materials
00Materials
3943355527040Prototype Manufacturing
00Prototype Manufacturing
3943357193915Design freezing
00Design freezing
3943356633845Validation
00Validation
3943356071870Verification
00Verification
32518352987040Preparation of design outputs such as drawings TOS, BOM etc
00Preparation of design outputs such as drawings TOS, BOM etc
32518353827780Review of Design outputs
00Review of Design outputs
29813254511675Production
00Production
42138604511675QAD
00QAD
27336755905500027336751160145004578351653540004572003657600045720036576000392430028384500516636040525700021145501811655004495800480060003924300480060006381752223135006381752223135006381752931795006381753902075004578354511675001228725451167500144780051346100014478005871845001447800647192000144780070243700022098004669790002209800466979000254317556756300047910754866005004213860364109000
MATERIALS AND STORES DEPARTMENT
Materials Management means managing materials in an organization with the main objective of reducing the cost and efficient handling of materials at all stages and sections in an undertaking. It includes purchasing, storage, inventory control, material handling standardization etc. This department deals with material cost, its supply utilization and handling. KEL follows the ABC analysis for the control of materials. ‘A’ and ‘B’ value materials are purchased against order; ‘C’ value materials are maintained at minimum stock level.

POLICY
To establish and maintain the process for procurement of right materials and services at right time, from approved suppliers as per requirement and those of the customers.

OBJECTIVE
To purchase materials without deviation from specification by reducing concessional acceptance by 50% from the present level.

To achieve 100% on time delivery by suppliers.

FUNCTIONS
Sub-contractor’s approval and codification
Purchasing of material
Storage and preservation of purchased products
Ensuring re-inspection of store and products
Release of purchase order amendments
Control receipt and issue of materials
Prepare monthly inventory statement
PURCHASE PROCEDURE
MATERIAL PURCHASE
Maintenance and structural division maintains and updates a master list of purchased products/services within the scope of this procedure and such lists are approved by the materials department.

Materials department documents and maintains purchasing requirements as guidelines duly approved by the General Manager.

Purchase is made from sub-contractors approved as per quality specification.

When purchases are required to be made from sub-contractors not within the approved lists, such lists are approved by the General Manager through Waiver notes.

Purchase activity is initiated against purchase requisition/purchase notice from the user departments.

Purchase requisitions are raised in respect of requirements specific to the production as well as in respect of standard products for which reorder levels are identified.

The mode of purchasing such as inviting quotation, and bid evaluation or direct purchase is based on the documented purchasing requirements guidelines.

Purchase is authorized by a committee consisting of General Manager, Material, Finance and Accounts and the user department’s representatives.
The particulars of purchase committee approvals are maintained in the purchase committee approval register.

On finalizing the purchase on the basis of guidelines/authorization, purchase order is raised and purchasing data is verified for their correctness by the designed personnel in the department.

A purchase order check list is prepared in evidence of verifying the purchasing data.

The purchase order is made in 6 copies and send to Materials, Quality Assurance, and Finance and Accounts.
The purchasing activities such as release of purchase orders, progress in supply of products and results of receiving verifications are recorded and monitored with the aid of Purchasing Monitoring Register for all purchase made in the structural division and for purchase of lamination, conductor and radiator and current transformers for the transformer division.

The purchase order is raised in respect of purchase against already made authorization.

Cash purchases are made without raising purchase orders and purchases by sub-contracting process are made on the basis of quality specification.

Verification of subcontracted jobs items are carried out at sub contractor’s premises or company premises.

MATERIAL RECEIVING, STORAGE, PRESERVATION AND ISSUE PROCEDURE
Store in charge receives copies of purchase order from materials.
On receiving materials against purchase orders, the accompanying documents such as lorry receipt, invoice transport copy of invoice where applicable, test certificates and bills of entry in case of imports are verified by the store keeper and enter in goods receipt register.
Security permits the carriers in to the company premises on verification of document and entering the verified details in the register.
On receiving Transformer oil tanker, the store keeper prepares goods received note (GRN) and pass to quality assurance upon which the oil is unloaded.
In respect of other materials, the store keeper prepares GRN prior to inspection.
All received items are accounted as per goods received register. GRN prepared in 6 copies out of which 5 copies are sent to quality assurance for carrying out inspection and testing and endorsements of results.
Quality assurance endorses the test status, read one copy, and forwards 4 copies to store incharge.
Materials received as barrels or drug cartons,carboys,bag,bundles, rolls, sheets or rods or flat are controlled with aid of work instructions.
Oil received in tanks is transferred to identify storage tank by pipelines.
All materials are secured as per storage plan, updated and authorised by materials.
Materials our Store in sub stores attached into each production area.
The storage plan indicates locations of Storage Area of Steel items on open yard, oil in tanks and sub stores.
The identifications or status of just received materials, past or rejected materials and NC procedures as per quality specification.
Then non -confirming materials are controlled as per specification.
Only materials passed in inspection are taken into KARDEX.
Item held in storage for more than the specified period is subjected to re inspection and testing as per work instructions for retesting of stored products prepared by materials.
The preservation of product in storage is achieved by specifying appropriate controls and application of preservation as documented by quality assurance issue of stored items to the user departments or sub contracted production units is made against stores requisition or loan note.
The expiry date, where applicable, is verified prior to issue.
The quality of Transformer oil held in tanks is assessed referring KARDEX or stock and issue register.
Excess quality return to the stores by used departments is accompanied with store return note, for accenting in KARDEX.
Item taken out for processes are returned and controlled with returnable gates pass or gate passes for job work.
When stock is held in store below the minimum or reorder level, purchase activities are initiated by stores in charge.
A Monthly inventory statement is prepared send to planning or production or finance and accounts.
They activate handling, storage, identification, control of nonconforming products and issue of materials under positive recall procedure are carried out as per work instructions.

PERSONNEL AND ADMINISTRATION DEPARTMENT
The success of any organization lies in its human resources. The term personnel management has now been modified as Human Resource Management. But in KEL, they still follow the old term Personnel Management. The Personnel Management controls the personals in the company. In KEL, the HR strategy is carefully linked to the vision, mission and overall business strategy of the company. The company has separate orders for both workmen and office men. The selection processes of the employees take place through the public service commission and the workmen are selected through employment exchange. After selecting the employees the personnel department gives proper training for the job.

POLICY
To achieve the competency of skilled manpower through constant training, education and experience in order to gain product quality.

OBJECTIVE
To educate and train our skilled manpower on a half yearly basis at the rate of 8 hours training per employee to upgrade the skill level and to reduce the rate of absenteeism to 5% from 7% which will be measured on a monthly basis.

DUTIES OF PERSONNEL MANAGER
Manpower planning
Recruitment
Selection
Placement procedures
Training and Development
Performance Appraisal
Transfer and promotion
Employees welfare administration
Disciplinary action
Wages and Salary administration
Leave Administration
RECRUITMENT
It is the process of searching for the prospective employees and stimulating them to apply for jobs in the organization. Recruitment is based on integrity, competency and ability to work in a team. The firm selects individuals having the ability to do the concerned job. KEL has adopted the centralized recruitment system. The recruitment and selection proceedings are conducted at the head office of the company and this method provide certain advantages to the company. The department conducts training programs for the management personnel, technical personnel, supervising staff and the department heads. The company has different methods for recruitment. They are:
ADVERTISEMENT
The major recruitment is done through advertisement in the local or national press, trade or professional journals. The recruitment for the job will be clearly stated in the ads and the manager chooses from the wide range of candidates who are suitable for that job.

EMPLOYMENT EXCHANGE
The recruitment is mainly done through employment exchanges. The vacancies may be notified with the employment exchanges, whenever there is a need, the exchange supplies a list of suitable candidates, from which the organization can select according to their requirements.

PROMOTION
It is a process by which an employer is shifted from current position to a position carrying better prestige. Seniority is a major factor for promotion. Promotion is mainly done based on the qualification, performance and experience of the employees or employers.

TRADE UNION
KEL Mamala has also recruited employees and staff from trade unions
KEL EMPLOYEES UNION
KEL EMPLOYEES CONGRESS
KEL EMPLOYEES ASSOCIATION
TRASFER
The transfers don’t include any change in rank. The number of persons will not be increased by transfer but the vacant seats will be filled. The transfer is based on an agreement between the management and the trade unions.

PROCESS
Receiving recruitment for labors from the entire department.

Sending letters to registered and corporate office.

Informing employment exchange ,RI centre (RO)
Receive list of candidate from the agency
Fixing interview date
Form the interview board
Sending call letter
Conducting interview
Sending appointment letter to candidate (RO)
Joining report preparation
Allocation of candidate to required department
SELECTION AND TRAINING
Selection is the process of picking up a suitable candidate for the job selection is based on qualification and experience. Training is the act of increasing the knowledge and skill of an employee for doing a particular job.

SELECTION PROCESS
159067458419EXTERNAL AND INTERNAL ENVIRONMENT
00EXTERNAL AND INTERNAL ENVIRONMENT

2552700126365
160020013335RECEPTION
00RECEPTION

2543175140970
1600200130810PRELIMINARY PROCESS
00PRELIMINARY PROCESS

2552700266065
1609725248920BLANK APPLICATION FORM
00BLANK APPLICATION FORM

255270061595
160972537465SELECTION TEST
00SELECTION TEST

2552700169545
1619250150495CHECKING REFERENCE
00CHECKING REFERENCE

2562225277495
1619250258445FINAL SELECTION
00FINAL SELECTION

257175056515
5181600520700368617510445752571750511175415290057150EVALUATION
00EVALUATION
162877576200PHYSICAL EXAMINATION
00PHYSICAL EXAMINATION

1627632496063JOB OFFER
00JOB OFFER
4151377496063JOB CONTRACT
00JOB CONTRACT

TRAINING AND DEVELOPMENT
There are three types of training mainly adopted by KEL:
Induction Training.

External Training.

Internal Training
INDUCTION TRAINING
The fresh employees and the transferred employees from other units must undergo this training. A training schedule is prepared by the personal department and directs the employees to the various sections or departments for the training.

EXTERNAL TRAINING
This is given to the permanent employees such as engineers, officers and other executives conducted by external agencies or external organization.

INTERNAL TRAINING
This type of training is given to technical persons working in various division/sections. Apprentice training is also given as a part of internal training. Work rotation is another technique for internal training.

Management gives training for a period of one year for the fresh employees. After the successful completion of training he/she is recruited on probation after which they are appointed in regular service. This training is compulsory for the company.

TRAINING PROCESS
Sending circular to all HODs about the training need of employees of the concerned department in prescribed format.

Receiving the responses.

Preparation on annual training plan
Scheduling monthly plan
Preparation of panel for training (external and internal)
Keeping attendance of participants
Evaluation and feedback from participants.

SHIFT TIMINGS
The shift timings of employees in KEL are:
STAFFS DAYS TIMINGS
Administrative staff Weekdays 9:30 am – 4:30 pm
Saturdays 9:30 am –12:30 pm
Employees in production department Week days 12:30 am – 8:00 am
8:00 am – 4:30 pm
4:30 pm – 12:30 am
Saturdays 8:00 am – 1:00 pm
1:00 am – 4:30 pm
TRANSFER AND PROMOTION
The selected staff will be transferred to different units of the organization where the staff is needed. Transfer and promotion is made to the vacant seats whenever suitable candidates with prescribed qualification and experience are available. Promotion is made only to the next higher posts. When suitable candidates are not available within a particular division to fill up higher posts in the same division, then the post is filled by external sources.

SAFETY MEASURES
The company gives prime importance to the safety of their employees and uphold the pride in having the least number of accidents reported in the field. They provide various safety equipments like face masks, shoes, gloves, helmets, goggles to protect them while working in the plant. The company also ensures the safety of the society and uses the two bi-products of the company i.e., oil and iron in an efficient manner. The company reuse the oil in production of transformers and the iron scraps are sold at the end of the year or incorporated in some safety shields for the workers.

WELFARE MEASURES
The welfare measures provided by KEL are:
Loan Facilities
Canteen
Recreation Club
Education benefit
Death Assistance
Funeral Assistance
Retirement Assistance
Benefit on registration
Marriage Contribution
Provident fund
ESI
Accident Benefits
Maternity leave
Drinking Water
Latrine ; Bathroom
Telephone
Leave Facility
Casual Leave
An aggregate of 14 days of casual leave with full payment is allowed to an employee during one calendar year.

For a period less than one calendar year of service, proportionate casual leave may be sanctioned.

Casual leave is not accumulated beyond the end of the calendar year to which it relates.

Festival Holidays
The employees are provided with 13 holidays in a calendar year.

CANTEEN FACILITY
The canteen facility is provided to each and every employees and staff of KEL. Each and every one has to pay Rs.30 per month for tea which is supplied twice a day and for the lunch.

DISCIPLINARY ACTIONS
The Personnel and Administrative department is responsible for disciplinary actions against violation of rules and regulations which are mentioned in the standing order.

SOME CASES ARE:
Willful in subordination
Disobedience
Fraud
Theft
Dishonesty
Illegal absence
Sexual harassment
PROCESS
Reporting the case to the GM
Issue show cause memo
Warning or enquiry
Inform the head office
Approval for enquiry and posting of enquiry officers
Meeting management witness and employee witness
PUNISHMENT FOR MISCONDUCT
An employee who is guilty of misconducted is availed with one of the following punishments.

Warning
Stoppage of increment
Withheld of future promotion or grade
Reduction in present grade
Discharge from the service
Dismissal
TRADE UNIONS AND LABOUR RELATIONS
KEL has got 4 affiliated unions:
Electrical ; Allied workers Union (UTUC)
Electrical ; Allied Industries employee union (INTUC)
KEL employees organization (STU)
KEL employees union (CITU)
APPRAISAL AND INCENTIVES
The performance appraisal system in KEL is only for the officers and not for the employees and due to this the employees are dissatisfied. Moreover the officers are given promotions according to the promotion policy rather than the performance.

FINANCE DEPARTMENT
Finance department is headed by finance manager. The main responsibility of finance managers is to take financial decisions which include investment decisions, financing decisions, dividend decisions etc. The manager has to keep a constant touch with all other departments and also keep all the records of transactions. At the end of every year he is responsible for making the financial statements.

Financial statements are prepared for the purpose of presenting a periodical review of report on progress by the management and deal with the status of investment in the business and the results achieved during the uses of fund. Financial statements reflect a combination of recorded facts, accounting principles and personal judgments. In order to understand the financial performance of a company it is necessary to analyze the balance sheet and profit and loss accounts.

To maintain all books of account up to date as per the statutory requirements and to manage working capital, preparation of budget, ensuring discipline in the case of financial resources preparation and analysis of books of account. The main books of account maintained in KEL are cash book, bank book, purchase register, Journal register, pay roll statement and central excise records. The software used is TALLY 9.
In KEL the financial statements are audited internally and externally. The internal audit is done by the corporate office while the external audit is done by Government officials.

The main responsibility of the finance department is to make:
Investment Decision
Financing Decision
Dividend Decision
The manager has to keep in touch with all the departments and also keep all the records of the day to day transactions at the end of the year prepare financial statements.

FUNCTIONS
The finance department of the company constitute the accounts and administration and cash management.

Auditing and finalization of works with the assistance of all the members of the finance department.

Accounting of purchase bill
Preparation of payrolls
Accounting of bank and cash transactions
Calculation of central excise
Sales accounting and sales tax matters
ACCOUNTING POLICIES OF THE COMPANY
Accounting Conventions
The financial statements are prepared under historical cost convention on accrual basis and in compliance with The Company Act 1956.

Fixed Assets
They are stated at cost less depreciation. Assets and liabilities are consistently recorded at historical cost.

Depreciation
Depreciation on fixed assets has been provided as per the rate indicated in schedule XIV of the Company Act, 1956 under written down value method
Extra shift depreciation for double shift and triple shift working has been provided in the account.

Depreciation on fixed assets in respect to project work in progress has not been charged in the accounts since the project is kept in abeyance as per Government direction.

Inventories
Finished goods are valued at cost or market price, whichever is less for arriving at the cost, and excise duty is also taken into consideration.

Work in progress is valued at the cost after considering overheads excluding financial charges
Raw materials, material in progress, spare, stores and loose tools are valued at cost and cost means weighted average.

Scraps are valued at realizable value.

Sales
Sales comprise of sale of goods and service and includes Excise Duty.

Price valuation claims on sales affected are accounted on an accrual basis
The reprocessed transformer oil is accounted at the current purchase prices by crediting the differences to miscellaneous income.

Consumption
Loose tools issued to shop floor are treated as consumed and written off as such.

Consumption of materials for production is completed on a derived basis.

Retirement Benefits
Gratuity and leave encashment are accounted for an accrual basis in compliance with accounting standards. The amount is determined on the basis of actuarial valuation conducted at the end of the year. As non-cumulative portion of leave encashment is not applicable to the company the same is not considered.

Liability on Material in Transit
The liability on the account of the bank charges and other expenses on materials in transit on the date of closing is accounted on accrual basis.

Research and development
Capital expenditure on research and development is treated as addition to fixed assets and revenue expenditure on R ; D is charged to Profit ; Loss Account under appropriate heads in the year in which it is incurred.

Contingent Liability
Contingent liabilities are not provided for, but disclosed in note on accounts.

Accounts and Documents
According to Sec.209 of The Companies Act clause, the companies have to keep proper books of accounts:-
All sums of money received and spent by the company and the matters with in respect to which the receipt and expenditure take place.

All sales and purchases of goods
Company’s assets and liabilities
Sources and Uses of Fund
The finance manager of the company collects the funds through the sales of products, from the head office and other sources. The unit manager has a limit to deal with the fund up to 2 lakhs. More than the limit, he needs the permission from the corporate office. The inevitable factor of the finance department is Payroll or salary administration. The salary administration is conducted in two ways:
For employees and clerical staff under Industrial Dispute Act
The salary of employees, includes basic pay, dearness allowance, house rent allowance, fringe benefits (attendance allowance or milk allowance), night shift allowance, washing allowance, risk allowance and overtime allowance. The net result of these is known as gross salary.

Fringe benefits are the allowance which includes the attendance allowance or milk allowance. Based on the agreement between management and trade union it is available to employees. The period of agreement is 4 years. For the fringe benefits the attendance is taken from the 16th of the month to 15th of the month. Change of allowance is Rs.2.50 per day for an employee.

The attendance is taken from 1st of the month to 31st of the month for the calculation of basic pay and dearness allowance. Based on the salary scale of the company the basic pay is calculated. Dearness allowance is an industrial dearness allowance or variable dearness allowance. D.A changes every month, and this change depends up on the point that differs every month.

Overtime allowance is provided to the employees, who undertake overtime work. For the calculation of overtime the attendance is taken from the 16th of the month to 15th of the month and working time per day is 8 hrs.

Provident Fund (P.F)
According to the PF Act 1952, the PF contribution is deductible from the Gross Salary. Both the employee and the employer pay 4.75% of his wages to PF. This PF contribution is followed to the PF department.

Employees State Insurance (ESI)
The ESI is a contribution scheme, with the employer paying 4.75% of wages and the employee paying 1.75% of wages to the fund. The ESI facility avail the employees who has salary up to Rs.150000 per month.

Net Salary = Gross Salary – Total deduction
For managerial staff under Kerala Government department rule 3
The salary scale and DA is fixed for managerial staff based on Kerala Government Department Rule. When the Government declares certain rate of DA to managerial staff, it is distributed after the recognition of board of directors. If the Board permits the distribution of DA, then it is distributed to managerial staff. Gross salary includes Basic pay, DA and HRA.

BALANCE SHEET AS AT 31st MARCH 2017
PARTICULARS 31.03.2017
Amount (?) 31.03.2016
Amount (?)
A
1
2
3
4
B
1
2 EQUITY AND LIABILITIES
Shareholder’s funds
a. Share capital
b. Reserves and surplus
Share application money pending allotment
Non-current liabilities
a. Long-term borrowings
b. Other long-term liabilities
c. Long-term provisions
Current liabilities
a. Short-term borrowings
b. Trade payables
c. Other current liabilities
d. Short-term provisions

3408044226695 TOTAL
ASSETS
Non-current assets
a. Property, Plant and Equipments
i. Tangible assets
ii. Intangible assets
iii. Capital work-in- progress
iv. Intangible assets under development
b. Non-current investments
c. Long-term loans and advances
d. Other non-current assets
Current assets
a. Inventories
b. Trade receivables
c. Cash and cash equivalents
d. Short-term loans and advances
e. Other current assets

TOTAL 871,480,770
(1,642,919,498) 871,480,770
(1,472,642,551)
(771,438,728)
239,791,140
194,832,000
6,952,013
140,440,501 (601,161,781)
239,791,140
246,114,000
17,239,253
143,464,561
582,015,654
150,507,014
389,382,878
559,490,455
19,635,920 646,608,954
212,517,575
250,957,377
428,013,398
14,883,423
1,119,016,267
929,593,193
78,021,488
60,408,834 -1392555182880906,371,773
951,818,946
28,244,233
104,903,823
138,430,322
55,000
24,230,426
54,719,993 133,148,056
55,000
28,825,320
53,367,388
217,435,741
211,442,713
456,836,265
24,404,970
18,476,790
996,714 215,395,764
156,735,346
497,682,860
53,456,397
27,874,941
673,638
712,157,452 736,423,182
929,593,193 951,818,946
PROFIT AND LOSS A/C FOR THE YEAR ENDED 31ST MARCH 2017
PARTICULARS 31.03.2017 31.03.2016
Amount (?) Amount (?)
1
2
3
4
5
6
7
8
9
10
11
12 Revenue from Operations (Gross)
Less: Excise duty
Revenue from Operations (Net)
Other income
Total Revenue ( 1+2 )
Expenses
a) Cost of materials consumed
b) Purchases of Stock-in-trade
c) Changes in Inventories of Finished Goods, Work in Progress and Stock in Trade
d) Employee benefits expense
e) Finance costs
f) Depreciation and amortization expense
g) Other expenses
Total expenses
(Loss) before prior period adjustments exceptional and extraordinary items and tax ( 3 – 4 )
Net Prior period (expense)/income
Exceptional Items
Loss before extra-ordinary items and tax ( 5 ± 6 ± 7)
Extra ordinary items
(Loss) before tax ( 8 ± 9 )
Tax expense:
a) Current tax
b) Deferred tax
(Loss) for the year ( 10 ± 11 ) 1,281,013,032
(121,512,780) 1,160,549,485
(108,878,370)
1,159,500,252
36,575,652 1,051,671,115
7,551,469
1,196,075,904 -14033502209801,059,222,584
739,609,764
40,044,738
(38,102,308)
269,205,001
70,607,627
14,897,867
271,406,402
1,367,669,091
(171,593,187)
1,316,240

(170,276,947)
– 594,255,032
26,886,497
(18,040,787)
283,258,104
50,863,849
5,829,595
-1384300218440283,737,676
-13938252139951,226,789,966
(167,567,382)
(5,015,350)
-1365885179070 –
(172,582,732)

(170,276,947)


– (172,582,732)



-60325241935(170,276,947)
-1394460195580(172,582,732)
11 Earnings per Equity Shares
Nominal value of share ? 10/- (31 March 2017 ? 10/-)
1) Basic
2) Diluted (1.95)
(1.95) (2.14)
(2.14)
MARKETING DEPARTMENT
KEL has adopted general feature of marketing. The product segment is directly connected with the customers. KEL displays advertisements in certain electrical journals only. They have recognized regional centers in various major cities. It also get orders through canvassing customer. The company also employs certain outside agencies which canvass order for it.

POLICY
To establish and maintain a process and procedure to obtain orders by identifying customer requirement regarding products and services.

OBJECTIVE
To establish and maintain a quality system suitable for organization’s vision and commitments towards marketing and sales of products and services rendered to the customer.

To improve upon customer satisfaction by reducing customer complaints, other than product complaints, by 50%within 6 months.

To meet customers need both stated and implied in order to maximize the order realization by 10% within one year
To increase customer satisfaction by 10% of the existing index by avoiding delay in providing on time services by 10%within one year.

FUNCTIONS
Evolve adequate marketing policies
Ensure the availability of required orders
Fix competitive prices
Make sure the payment before dispatching the product
Provide after sales service to the clients
Ensure the optimum utilization of resources available to the company
Reviewing enquiries, traders, contracts and contract amendments
Communicating with customers
Coordinating servicing
Maintain invoice register
MARKETING NETWORK
KEL products are marketed by extensive networks of marketing officials located in all major cities like New Delhi, Mumbai, Kolkata, and Bangalore etc. They provide all support services to the sale and marketing service to guarantee complete customer satisfaction. The KEL has a wide network of regional offices, services and business centers located in most of the major cities in India for effective marketing, and providing efficient after sales service.

2042795228600 START
00 START
FLOW CHART OF MARKETING PROCESS
25361904127500
99504520320Enquiry direct/ from railway website
00Enquiry direct/ from railway website

25361902222500
14668518415Purchasing of tender document Direct/ from railway website
00Purchasing of tender document Direct/ from railway website

25387301841500
117538598425Evaluation and review
00Evaluation and review

254254010160000
1699260107950Pricing
00Pricing

254127011303000
619125114935Preparation of offer for Machine and spares
00Preparation of offer for Machine and spares

254127014605000
1537335174625Submission of tender
00Submission of tender

10896603735705Amendments from customer if any
00Amendments from customer if any
253174534055050012706353080385Order entry register
00Order entry register
25380952792730007753352457450Receipts of order review and acceptance
00Receipts of order review and acceptance
255143020840700017183101718310Follow up of order
00Follow up of order
255651014249400018040351074420Negotiation
00Negotiation
2556510793750001584960461010Tender opening
00Tender opening
255270015049500
CHAPTER 4
SWOT ANALYSIS
A detailed study has been conducted in order to analyze the strength, weakness, opportunities and threats of the organization.

STRENGTHS
KEL is an ISO 9001:2000 certified company.

KEL has garnered many years of experience and domain specific expertise which has created a unique brand name as well as goodwill in the industry.

As the organization comes directly under the Government of Kerala, it is financially sound and has a good infrastructural facility which has a scope of expansion in the future.

The organization provides products and services of the highest quality and delivers the same without any delays or lags.

The organization maintains good industrial relations which brings in clients every year.

KEL’s product portfolio includes future ready product ranges.

KEL’s personnel consist of dedicated and highly qualified technical staff.

After sales services at all major cities spread across the country.

WEAKNESSES
Inadequate control over materials and resources which leads to wastage.

In certain areas of manufacturing, modern technologies and machineries are yet to be implemented.

As the organization comes under the government, the decision making process as well as the implementation is slow and time consuming.

Lack of computerization of data and information in respective departments.

The existing labor capacity cannot meet incoming orders and this in turn is putting a lot of pressure on the existing employees.

Lack of performance appraisal system.

OPPORTUNITIES
The company has an opportunity of diversifying into various other faces of infrastructural development.

Centralization of data resources by incorporating an IT department which monitors and regulates the data pool.

There is an immense scope for KEL to expand their reach into the northern markets of India especially by tapping the Northern Electricity Boards.

There is a decrease in loss year by year.

THREATS
There is an increasing amount of competition from the private enterprises and also from the foreign players.

As the organization is Government owned, political uncertainties could cause lot of delay in the decision making process.

New government regulations and also foreign exchange fluctuations could be treated as threats to the firm.

Absenteeism is an internal threat present in the organization.

INFORMATION GAINED FROM SWOT AND FUNCTIONAL AREAS
The above depicted SWOT analysis reveals the cause of the unsatisfactory performances and the possibility of future progress. It can be clearly seen that even though there are lot of opportunities available, the company is not taking any benefits of such situations. Even though they understand that in order to expand their footprints they should be able to scale up operations, but funds allocated for such expansion is being diverted to ailing sister concerns.

Their technological process and know-how could easily establish them as industry leaders. Their present workforce is not sufficient enough to provide for when compared to the number of orders.

The lack of proper inventory management facilities is another major problem that rises the wastage of resources. There is also fluctuations in the material prices which results in costlier finished products than that of the competitors.

CHAPTER 5
FUNCTIONAL HIGHLIGHTS ACROSS KEY RESULT AREAS
Production
No pollution problem
Company gives prime importance to quality
Full-fledged machines and fabrication machineries
Highly skilled employees
Good safety measures
Marketing
The sale of the firm currently focuses on the products of structural division
KEL displays advertisements in certain electrical journals only
Company has good brand value
The company has no research facilities to know the trends in the market
Better after sales services.

Finance
The company follows mercantile or accrual system of accounting.

The company faces financial loss for the past 5 years. However, the loss is reducing every year.

Human Resource
The company’s major decisions are made by the managers themselves
Company has a good team of management and technical staff
Healthy employer employee relationship exists in the firm
Bio-metric system is used for time keeping
Presently no recruitment processes are carried on by KEL
Workers are recruited through PSC, direct recruitment, and employment exchange

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CHAPTER 6
FINDINGS, RECOMMENDATIONS AND CONCLUSIONS
FINDINGS
The company is in loss for the past few years. But, the loss incurred is lesser every year.

The company has not recruited any staff since 2005.

The company records are mostly maintained in files and not computerized.

The company gives prime importance to the quality of their products.

A healthy employee-employer relationship exists in the firm this is evident by the very low attrition rate.

Since the company adheres to various environmental control system, it is seen that there is extremely less pollution.

There should be a proper production target to be set in consultation with the employees.

The management has to take a proper decision to make use of the vacant land in the company’s compound.

Production should be increased by using the same workforce by offering incentives. This will help to improve the throughput.

Performance appraisal system for the workers is required.

Adequate control of materials is needed.

More worker participation should be made in decision making process.

SUGGESTIONS
The company should improve the sales promotional activities.

Company should request financial assistance from the government for avoiding cumulative loans.

The company should give more worker participation in decision making process.

The company should be more competitive against private firms.

The company should be in touch with the market and customers through researchers to monitor the changes taking place in the market and through this the company can achieve much more in the coming years.

Accommodation and other recreational facilities have to be improved.

Computerization must be done immediately and effectively.

Recruitment of new and efficient employees is essential.

CONCLUSIONS
The Kerala Electrical and Allied Engineering Company Ltd. is one of the biggest public limited companies in the state of Kerala, and is serving the nation providing very important and essential equipment to various industrial concerns and various electricity boards in India. KEL has got ISO 9000:2000 certifications for its excellent functioning and the future plans of the company is to commission a power transformer plant.

KEL should be in touch with the market and its customers through research initiatives which help monitor the changes taking place in the market. Through this, the firm shall achieve much more in the coming years. Also, they have to cut down the losses by getting the financial assistance from the government. The company also needs to include information technology as part of their marketing strategy as well as for the organization of data.
Finally, I would like to conclude by stating that the organizational study at KEL, Mamala was immensely educative and allowed me to get a broader perspective of a manufacturing firm and how it functions in real-time. This study also helped me to understand the working of various functional departments as well as the functions performed by each department. The future will no doubt witness a more competitive environment coupled with a more dynamic and vibrant sector and the company has to rise up to the occasion to be successful in the future years to come.

REFERENCES/BIBLIOGRAPHY
1. “Kel – Kerala Electrical & Allied Engineering Co.Ltd.” Kel Kerala Electrical Allied Engineering CoLtd, kel.co.in/.

2. Kel – Kerala Electrical & Allied Engineering Co.Ltd. (2017). 2016. Annual Report.

3. Kel – Kerala Electrical & Allied Engineering Co.Ltd. (2016). 2015. Annual Report.
4. Kel – Kerala Electrical & Allied Engineering Co.Ltd. (2015). 2014. Annual Report.

5. Kel: Balance sheet 2016-2017. (2017). Retrieved form KEL Annual Report.

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