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A brief company profile of KSDL
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CUSTOMER SATISFACTION TOWARDS KSDL
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 materials.
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 manufactures are trying to capture a
commanding market share by introducing and maintaining
acceptable products. The soap industry in India faces a cutthroat
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 lakhs tonnes p.a.
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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 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 on wards 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 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.
5. Soap manufacture has 2 classifications, organized and
unorganized sectors. KSDL comes under organized sector
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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 7.4lakhs tons per annum soap market in India in 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.
2. COMPANY PROFILE:
A. BACKGROUND AND INCEPTION OF THE COMPANY:-
Soap is one of the commodities, which has become an
indispensable part of life of the modern fantasy 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, toxicological
allergy problems, increase in cost of raw material etc.
Following Swadeshi movement in 1905, few factories were set
up and they were:
1. Mysore Government Soap factory at Bangalore.
2. Godrej Soaps at Bombay.
The changing technology and even existing desire by the
individuals and the organization to produce a better product at a
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mere economical rate has also acted as Catalyst for the dynamic
process of change. More and more Soap manufactures are trying to
capture a commanding market share by introducing and
maintaining acceptable products. The soap industry in India faces a
cutthroat Competition, while multinational companies dominate the
market.
THE INDIAN SOAP INDUSTRY SCENARIO: -
The Indian soap industry has been dominated by handful of
companies such as
1. Hindustan Levers Limited.
2. Tata Oil Mills (Taken over by HUL )
3. Godrej Soaps Private Limited.
4. Recent entrants include - Colgate Palmolive Ltd.,
- Proctor & Gamble Ltd.,
- Nirma Soap Works,
- Wipro Ltd.
The Indian Soaps industry continued to flourish very well until 1967-
68, but began to stagnate. Soon it started to recover and
experienced a short upswing in 1974. This increase in demand can
be attributed to:-
1. Growth of population.
2. Income and consumption increase.
3. Increase in urbanization
4. Growth in degree of personal hygiene.
Soap manufacturers are Classified as, Organized and unorganized
sector. KSDL is under organized Sector.
PROBLEMS OF SOAPS & DETERGENTS INDUSTRY:
Industry faces some problems due to increase in the cost of
raw materials. The major ingredients like soda ash, linear alkyl
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benzene and Sodium Tripoli phosphate poses number of serious
problems in terms of availability. The demand and supply gap of
vegetables oil is 1.5 to 2 Lakhs tons and is met through imports.
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 in fact 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.
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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 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 for want of Natural
Sandalwood.
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 lakhs 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
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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.Sudbrough. Like this soap factory was started as a
small unit and now it has grown up to a giant size.
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.
2.C. VISION,MISSION AND QUALITY POLICY
VISION STATEMENT:-
Keeping pace with globalization, global trends and the
state’s policy for using technology in every aspect of
governance.
Making available technology product and services at the
most affordable price to the people at large, in keeping
with the policy of a welfare state.
Making all out efforts to achieve reasonable profits.
Most importantly to earn the invaluable foreign
exchange, both to the state and to the country.
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MISSION STATEMENT:-
To serve the National economy.
To attain self-reliance.
To promote purity & quality products
To maintain the Brand loyalty of its customers.
To build upon the reputation of Mysore sandal soap
based on pure sandal oil.
2.C. QUALITY POLICY
AN ISO-9002 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
by the end of March to the Bureau of Indian Standards. Obtained the
certificate by the end of March 1999 itself.
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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.
2. D. 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.
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PRODUCT RANGE FROM THE HOUSE OF K.S&D.L
a. Mysore Sandal Soap (75gm,125gm &
150gm)
b. Mysore Sandal Special Soap (75gm)
c. Mysore Sandal Baby Soap (75gm)
d. Three-In-One Gift Pack –(SJR) 3Tabs (150gm Each)
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e. Mysore Sandal Gold Soap (125gm)
f. Mysore Rose Soap (100gm)
g. Six-In-One Gift Pack- 6Tabs (150gm Each)
h. Mysore Sandal Gold sixer 6 Tabs (125gm Each)
i. Mysore Sandal Soap Bath Tablet Trio 3nos. (150gm Each)
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j. Mysore Sandal Classic Soap (75gm)
k. Jasmine Bath Soap (75gm)
l. Mysore Herbal Care Soap (100gm)
DETERGENTS:
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. Mysore Detergent Powder (1kg/500gms)
2. Mysore Detergent bar (250gms)
3. Mysore Detergent Cake (125gms/250gms)
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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.
TALCUM POWDERS
1. Mysore Sandal Talc: Cooling & Healing, Fragrant freshness,
Net. Wt 20gm, 60gm, 300gm and 1kg.
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Mysore Sandal Baby Powder: Tender loving care for baby…&
Mummy. Net wt 100-400gms.
LIQUID SOAP
Wave duo liquid body wash Wave herbal wash
2. E. 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 origin & totally free from animal fat.
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Australia Duorand West Italy Singapore
Canada Nepal Mauritius Srilanka
France UAE Malaysia Saudi Arabia
Japan USA Panama South Africa
Kenya Czechoslovakia Bahrain Taiwan
Holland Germany Qatar UK
2. F. OWNERSHIP PATTERN:
“Wholly owned by Government of Karnataka”.
2.G. COMPETITORS INFORMATION AND THEIR
MARKET SHARE:
HUL 70%
Godrej 4%
Procter & gamble 10%
KSDL 11%
Others 5%
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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.
2. H. INFRASTRUCTURAL FACILITIES:
1. Canteen facility
2. Library
3. Car stand 4.Waiting room
2. I. ACHIEVEMENTS/AWARD:
1. Government of Karnataka Dept of Industries and commerce
2. State Export Promotion Advisory Board. “EXPORT AWARD”
1974-75
3. Detergent Plant
4. M/s Chemical Bombay have given 1st price for the year 1980-
81
5. Geographical Indication GI-2005
6. ISO 9001-2000 in the year 1999
7. ISO 14001-2004 in the year 2000
2. J. WORK FLOW MODEL
SILOS
(Silos are closed chambers)
Soaps Noodles
Container Mixer
Simplex Plodder
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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
2. K. 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.
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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.
3. 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;
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A. STRUCTURE OF ORGANISATION
BASIS OF DEPARTMENTATION
KS&DL is a manufacturing concern of moderately large size. We
can see here function wise departmentation. It facilitates utilization
of man power and it is a simple, economical and reasonable
organization pattern
LEVEL OF ORGANITATION
The organization of KS&DL consists of 4 levels
1 Top level consisting of BOD’s and MD
2 Second level consisting of Directors of Finance &
Special officers
3 Third level consisting of senior managers , deputy
managers and officers
4 Fourth level consisting of clerks, Assistants and
Attenders
ORGANIZATION CHART OF KS&DL
KS&DL is Function type of organization. Under this type of
organization men with special abilities in a specialized function are
employed. The hierarchy is represented as fallows
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B SKILLS:
The term “skills” includes those characteristics, which people use
to describe a company. Organization have strengths in a number of
area but their key strengths are dominant skills are few. These are
developed over a period of time of the result of the interaction of a
number of factors performing certain tasks successfully over a
period of time, the kind of people in the organization, the top
management style, structure, the management systems, the
external environmental influence etc. Hence when organization
makes a strategic shift it becomes necessary to consciously build
new skills.
Employee’s skills in an organization will be unique, this may be
due to their experience in the place of work, and the similarity may
also due to influence of the similar culture.
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However every person according to his traits possesses his
own talents and special characters. This cannot be generalized skill
among them.
The employees of KS&DL have different skill, which are
relevant for their work. As it is common in big organizations, he also
controversies between departments which can be solved by
discussions and by conducting some interactive programs.
C STYLE:
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 of department manager’s
consultation which gives best possible gains.
D 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
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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.
E SYSTEM:
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.
1. FIFO method for issuing materials.
2. 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.
F STAFF:
As any employer, KS&DL follow ethical employment
standards wherever it operates with a goal in mind company
guarantees.
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1. To fulfill its entire legal obligation in terms of employment
payments and benefits practices.
2. Adequate and timely training for every one for the job for which
they are employed.
3. Career advancement related to performance and experience.
G SHARED VALUES:
Values:
Values refer to the institutional standards of behavior that
strengthen commitment to the vision, and guide strategy
formulation and purposive action. The core values are shaped
around the belief that enterprises exist to serve society. In terms of
this belief, profit is a means rather than an end in itself a
compensation to owners of capital linked to the effectiveness of
contribution to society and the essential ingredient to sustain such
enlarged societal contribution.
Thus company has embraced an extended role of trusteeship
that reaches beyond the assets reflected in the balance sheet to
encompass societal assets. An unwavering commitment to integrity,
ethical conduct, meritocracy, teamwork and abiding concern for
stakeholders are at the heart of your company’s value system.
Customer satisfaction
Committed to total quality.
Cost and time-consciousness.
Innovation and creativity.
Trust and team spirit.
Respect for individuals.
Integrity health and ethics.
4. SWOT ANALYSIS
STRENGTHS:
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An ISO 14001 company, which commits to reserve the
natural environment in the production of its quality products to the
satisfaction of its customers.
The factory is located in the heart of the city & has all
infrastructure facilities. They have quick movement of raw
materials & finished products. Due to its proximity,
habitation movement of men and material are easy.
A very good dealership network, which ensures that the
products reach every loop and corner.
A very little competition for its major products sandal
soap.
An ISO 9002 certified company has its own brand image.
Diversified product range keeps the company stable.
Abundant availability of raw materials.
Two sandalwood oil factories in Shimoga and Mysore,
which produce 75% of world’s sandalwood oil.
WEAKNESS:
Slow growth rate 6.2 growths over 40 years against the
product of 80%.
High oriented cause due to excessive Labour force.
Low turn over resulting in low profits.
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Defective marketing strategy lacks effective advertising and
publicity. 23
Needs updating with times in terms of plant and machinery.
R&D is not effective in as much as it has not made any brake
through in new products.
The large proportion of the target area is upper middle class
and upper class people, it has very few offer to lower middle
class.
It has only 8% of the total detergent market share.
Due to lack of direct sales, debts with many dealers turning
bad.
Unskilled labor coupled with excess labor hampers profitability.
OPPORTUNITIES:
1. The toilet soap and the detergents market is an over
expanding industry and a major company likes KS& DL with
its manufacturing expertise can call the shots if it reaches
peak manufacturing capacity.
2. Good export market should tap foreign market vigorously.
3. At present it has Good raw material sources to enhance
production.
THREATS:
1. Competition from other global leaders like HUL.
2. Government interference may reduce growth potential.
3. As the company depends on forests for its main raw materials
makes the company to find chemical alternative to
sandalwood.
4. To protect the financial interest of the company.
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ANALYSIS OF FINANCIAL STATEMENT.
PROFIT AND LOSS ACCOUNT(RS in Lakhs)
PARTICULARS AMOUNT AMOUNT AMOUNT AMOUNT
2006-07 2007-08 2008-09 2009-10
INCOME
Sales 1,04,43,74,470 1,28,64,62,008 1533703531 1,647,774,737
Other income 1,90,04,300 2,09,85,305 60623797 22,288,309
1,06,33,78,770 1,30,74,47,313 1594327328 167,063,047
Increase/(-) Decrease in stock
4,73,09,343 2,64,66,726 70374213 53,286,174
1,11,06,88,113 1,28,09,80,587 1,66,4701,541 1,723,349,221
EXPENDITURE
Materials Consumed(Include trading items)
50,70,94,583 54,13,33,115 801928343 775,383,439
Other Expenditure 55,19,82,573 61,35,25,868 734442910 799,799,905
Depreciation 36,05,016 35,77,430 3969038 4,982,474
1,06,26,82,573 1,15,85,36,413 1,540,340,291 1,580,165,818
Operating Profit /Loss
4,80,05,540 12,24,44,174 124,361,250 143,183,402
Less: Interest and Finance Charges
46,48,394 45,08,734 72,76,261 8,297,546
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PROFIT BEFORE TAX
4,33,57,146 11,79,35,440 11,70,89,988 134,885,857
Less: Provision for Taxation
(i) Current Tax 52,00,000 1,80,00,000 1,85,00,000 48,000,000
(ii) Fringe Benefit Tax
23,01,452 70,98,690 21,28,828
Dividend tax 45,96,941 2,03,58,318
PROFIT AFTER TAX
3,58,55,694 8,82,39,809 11,68,14,478 93,112,149
Prior Period Income /(-)Expenditure
66,40,866 1,40,78,609 1,441,082
Deferred tax asset 3,21,46,548 - -
Proposed dividend 2,70,48,785 - -
Tax of earlier year 2,20,99,794 1,37,30,643 - -
2,03,96,797 12,17,55,748 13,08,93,087 75,760,017
Profit/Loss brought forward previous year
(53,26,504) 15070293 13,68,26,041 267,719,129
Profit /Loss Carried to Balance Sheet
1,50,70,293 13,68,26,041 267,719,129 343,479,146
OBSERVATION
The above profit & loss account shows that profit & loss for the year 2006-
2010 of the company KS&DL.
By analyzing the above profit & loss account we can come to a conclusion that the company was under loss for the year 2006, until they earned the profit in the year 2007 onwards.
INFERANCE:
The financial statements show that from the year 2006-2010 the
company has paid the excise duty for its imports hence it is interpreted that the
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company has started to import. This has in turn let to decrease in profit level of the
company. Since it is from the year 2006, due to the entry in importing for the first
time, the company has increased loss in that particular year. In 2010 the profits has
much increased against preceding years which indicates good position.
BALANCE SHEET as at 31 st march (amount in crores)
Sources of Funds 2006 2007 2008 2009 2010
Shareholders Fund
Capital 31.82 31.82 31.82 31.82 31.82
Reserves and Surplus - 1.51 13.68 26.77 34.34
Loan Funds Secured
Secured - 1.66 1.04 10.72 8.09
Unsecured 19.99 13.00 9.00 8.35 8.35
Deferred Tax Liability (Net) - - 3.21 5.25 -
Total Funds Employed 51.81 47.99 61.96 82.91 82.52
Application of Funds
1. Fixed Assets
a) Gross Block 30.28 29.24 29.61 30.96 32.72
Less Depreciation 24.24 23.35 23.71 23.98 24.14
b) Net Block 6.03 5.89 5.91 6.98 8.59
Capital Work in Progress - - - - -
Total 6.03 5.89 5.91 6.98 8.59
Current Assets Loans and Advances
a. Inventories 34.12 35.09 29.60 40.75 51.61
b. Sundry Debtors 6.88 8.09 14.63 16.35 17.27
c. Cash and Bank Balance 19.57 31.23 33.43 25.51 28.53
d. Loans and Advances 9.44 7.25 10.49 21.53 21.40
e. Investment in gratuity
fund
- - - 5.00 5.00
Total 70.02 81.66 88.17 109.14 123.10
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LESS : Current Liabilities and Provision
I. Current Liabilities 17.07 29.26 30.88 24.67 29.23
II. Provisions 9.82 11.59 16.67 20.50 26.10
Net Current Assets (6) Less (7) 43.13 40.81 40.62 63.98 67.81
Miscellaneous Expenditure 2.12 1.29 2.80 1.64 -
Total Assets (Net) 51.81 47.99 61.96 82.91 82.53
5.6.LEARNING EXPERIENCE
The learning experience gained by me during the in-plant
training was very much practical oriented. Mostly all the concepts
and theories, which I studied in the class, are applicable practically.
The overall study of the organization reveals that the company
has grown tremendously since its incorporation from 1918, now it
has independent units for manufacturing sandalwood oils, toilet
soaps, washing soaps, detergents, cosmetics, incense sticks and
industrial products. The initially named Government Soap Factory
was renamed as Karnataka Soaps and Detergents Ltd in 1st October
1980.
Its trademark is “Sharabha”, the slogan stands as “Natural
products with exotic fragrance”. The company is a leading
sandalwood soap Manufacturer in the country. Even though they
have demand for their products in both domestic as well as
international market, They are not able to establish themselves as
market leaders due to various reasons such as extensive work force,
non-utilization of installed capacities of manufacturing, lack of
proper distribution network, lack of expenditure in the areas of
advertisements and publicity, competitions of various soaps and
detergents and lack of timely decisions.
The company has an effective human resources department
where in the employees are given excellent packages, incentives
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and extensive care is taken by providing facilities such as canteen,
medical facilities, motivation classes and extracurricular activities.
I had a great time working on the project, as it gives insights
into the working environment of an organization. The training has
exposed me to many facts of an organization and also helped me to
gain practical knowledge, which will go a long way in the horizon of
our career. I became more aware of the soap industry and the role
played by KSDL.
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