CHAPTER 1

“INTRODUCTION TO
SMALL SCALE INDUSTRIES”
INTRODUCTION:
The growth of Small Scale Industries in our country has provided
opportunities for self employment to educated youth Small Scale Industries
are regarded as a power tool for balanced regional economic development. On
the basis of the recommendations of the Central Small Scale Industries
Advisory Board, the state level organizations have been set up in all states to
assist the Small Scale Industries with regard to for distribution of various
industrial raw materials by procuring the same from the main producers
against the allocation made by ministry of Steel, Coal etc., establishment of
industrial estates etc. Karnataka State Small Scale Industries Development
Corporation Limited is one such Organization established on29th April 1960
under the Companies Act 1956.
Industries play an important role in the economic development of any
nation. Without industries, economic development is impossible. Again, in a
backward & developing economy like India, industries are indispensable. That
is why; Dr. M. Visvesvarayya remarked “Industrialize or Perish”.
Development of industries is not only indispensable for India, but also
there is good scope for the development of industries in our country. India has
many favorable factors for the development of industries.
Small-Scale Industries, started in rural areas, can provide alternative
employment to agricultural labour & relieve the pressure on the agricultural
land. They can also provide work to the farm workers during the non-
agricultural season. & also Small-Scale Industries offer scope for the
development of the hidden talents of people.
Since Small-Scale Industries form an important component of our
Industrial Set up was decided to concentrate on the Small-Scale Industrial
sector in this study.
 CHAPTER 2

“INDUSTRY PROFILE”
 HISTORY OF THE CORPORATION
KSSIDC (then Mysore Small Industries Corporation) is rendering
services to the small sector in the State for more than 40 years. It is both
befitting and appropriate to look back over the years and trace some of the
important events that took place during the period. With a moderate beginning
by occupying a small rented building in the outskirts of Bangalore, the
Corporation moved to its own building in the Rajajinagar, Industrial Estate.
Until around 1960, the State Government’s efforts to encourage the
development of small-scale industries were being pursued by the Department
of Industries and Commerce as a part of the Department’s overall strategy for
a comprehensive industrial development. From 1960, MSIC, then KSSIDC,
took over the activities relating to the management and setting up of industrial
estates and distribution of raw materials and started to give a new orientation
to this aspect of development. The Corporation started with an initial share
capital of Rs.10lakhs, which were gradually stepped up. The State
Government’s contribution to the equity of the Corporation during the first 10
years was Rs.20lakhs. The paid up equity capital of the Company for the year
ended 31st March 2004 was Rs.2466.66 Lakhs.
THE CRITERION FOR SMALL UNITS
Criterion for small units: Investments in fixed assets in plant &
Machinery has been criterion to determine the scale of the industrial sector of
unit. It is pertinent that investment in other assets such as Administration
Building, Lands & other fixed assets is not taken in to account. The traditional
measurement of size by the number of employees is not adopted.
CLASSIFICATION OF INDUSTRIES:
Tiny Industry

Small Scale Industry

!
" ! #$$
Medium & Large Scale Industry: An industrial unit which is not
classified as Tiny/Small Scale/Ancillary Industry shall be classified as
Medium/ Large Scale Industry.
ESTABLISHMENT AND MANAGEMENT OF INDUSTRIAL
ESTATES
The programme of establishment of industrial estates, which has been
carried out by the State Government involved in construction of industrial
sheds of various dimensions and providing them with essential amenities such
as roads, water supply, sewerage line and electricity. The maintenance and
upkeep of the sheds also became a part of the responsibility of the
Corporation. Besides constructing and letting out the industrial sheds,
developed plots were also offered to the entrepreneurs to put up their own
factory sheds. The company also established exclusive and prominent
ancillary industrial estates in the vicinities of large and medium scale industry
to cater to their services to public sectors like BEL, ITI, HAL, NGEF, BHEL,
BEML, VISL and Mysore Lamps.

The Company has also established an exclusive Industrial Estate

under Dr. B.R.Ambedkar Birth Centenary Programme at Jigani Bangalore
District where 100 sheds have been constructed and 86 plots have been
formed with all infrastructures exclusively for SC & ST entrepreneurs. The
Allottees of these sheds are required to pay only 40% of its cost. The company
under VISHWA SHEDS SCHEME constructed 800 sheds all over the state for
the use of tiny units.
MARKETING ASSISTANCE TO SSI UNITS:
The Company with the objective of creating Market to SSI product
formulated a Sister Concern called KSIMC (Karnataka State Industrial
Marketing Corporation) with an investment of 35 Lakhs. Till date the
Company fared well in catering the needs of SSI units to market their
products. The Company with a view to strengthen the marketing of the SSI
units participated in the tenders floated by Government Under takings and
Other Public Sector undertaking on behalf of SSI Units.
POWERS AND DUTIES OF OFFICERS AND EMPLOYEES:
KSSIDC being a company, the highest authority in the company is its
Board of Directors and being a Government company all the directors are
nominated by Govt. of Karnataka. The Board of Directors constitutes the
Chairman, Managing Director, and other Directors are nominated by the
Government from time to time.
Powers of the Board:
The Board of the company exercises all the powers that the Board of a
company exercises subject to the restrictions in the Articles of Association
which lays down that certain powers is to be exercised only with the approval
of Government. There is also a clause in the Articles of Association that
Govt. will have the power to give directions to the Board. The main
restriction in the power of the Board is that all capital expenditure above Rs.50
lacks is subject to approval of Govt.
Powers of the Managing Director:
The decisions taken by the Board and the Committees of the Board are
implemented by the Managing Director who has the powers of management of
the unit and looks after the routine day-to-day issues and other administrative
matters.
Powers of Officers:
The Board has delegated routine restrictive administrative powers to the
departmental heads for day-to-day affairs of the functional areas. The officers
in the cadre of General Managers, Chief Managers, Superintendent Engineer,
Company Secretary, Deputy. Chief Managers exercise the same. However,
the overall administrative control of the corporation is vested with the
Managing Director.
Turning small dreams in to big successes KSSIDC
The perfect business climate
Karnataka one of the India’s top five industrialized states, has always
been in the forefront of industrialization. The drive for industrialization started
as early as in the first decades of 20th century under the visionary leadership of
Sir Mirza Ismail and Sir M. Visveswaraya the legendary Dewans of the
erstwhile Mysore State.
Today, Karnataka is one of the most preferred destinations for global
investments in high technology sectors like IT and Biotech, as well as in the
old economy industries like automobiles, steel, cement, garments, agro food
processing, etc.
Karnataka’s strength lies in its strong technological base, highly skilled
human resources, enlightened government policies and investor-friendly
business environment.
KSSIDC
A true friend of the small and medium entrepreneur KSSIDC has been
established to give a helping hand to the small and medium entrepreneurs of
the state to take the chant of industrialization to the grass root level. If you are
a small or medium entrepreneur with a viable business model, KSSIDC will
help you all the way right from providing land and industrial sheds, to
assisting with managerial and technical support, to sourcing of raw materials.
KSSIDC’s Services
Establishment of Industrial Estates
Construction of Industrial Sheds
Development of Plots
Engineering services for construction
Sourcing of raw materials
Management guidance to SSIs
Business Centre’s
So far, KSSIDC has established 158 industrial estates in various parts of
the state& constructed 5600 Sheds & developed & 3615 Industrial Plots of
various dimensions in these industrial estates that cover an area of over 2500
acres. All these industrial estates are fully developed with all necessary
infrastructures like roads, electricity, water, telecommunications, drainage etc.
KSSIDC MANAGEMENT
The KSSIDC is managed by a team of 11 Directors on the Board
including one Chairman and the Managing Director. All these Directors on the
Board are appointed by Government only.
STRUCTURE OF THE COMPANY
The Company apart from Board of Directors and Managing Director
General Manager, Chief Managers including a Superintendent Engineer, who
constitute the core of the service management. The Company, apart from its
Head Office at Bangalore has Three Zonal Offices of which, one is situated at
Bangalore, another at Hubli and Third one at Mysore. The Company has
Eleven Division Offices headed by Deputy Chief Managers and 27 Raw
material Depots spread throughout the State of Karnataka. The total staff
strength of the company is 363.
 The company has computerized most of its activities with a view to keep
up-dated information in all the spheres of small industries development. The
computer is being used mainly for processing pay rolls, financial accounts,
raw-material inventory accounting, and preparation of estimate, tender and
also to process the management information system to aid the management on
the day-to-day administration. The company is also making efforts for
simplifying the procedures and to de-centralize the powers so as to ensure that
the decisions are taken even at the field level.
BOARD STRUCTURE
State Government nominates all Directors.
Total numbers of Directors are eleven.
Official Directors : Nine Directors
Non-Official Directors : Two Directors
Quorum : Four Directors

Sl Name Sri/Smt Designation & Office Director

Address of Director Since
1 D.C.Gowrishankar Chairman KSSIDC Ltd. 30-09-2008
Bangalore
2 P.Ganeshan, I.A.S Managing Director 13-02-2009
KSSIDC Ltd.
3 B.S.Ramprasad, I.A.S Addl.Secretary to Govt. 31-07-2008
C&I Department
4 Dr.Vishal. R, I.A.S Deputy Secretary to 31-05-2008
Govt. Finance
Department
5 Dr.Rajkumar Khatri, Secretary to Govt. C & I 31-05-2006
I.A.S, Department Bangalore
6 Kaushik Mukherjee, Managing Director, 31-07-2008
I.A.S KSFC
7 T.Sham Bhat, I.A.S Chief Executive Officer 16-07-2008
& Executive Member ,
KIADB
8 N.L.Peshve Chief Engineer (C&B), 19-04-2008
Public Works
Department.
9 K.L.Rao Director, MSME 31-05-2008
Development Institute
10 H.V.S.Krishna President, Laghu Udyog 12-03-2007
Bharthi, Karnataka
11 Aravinda N Burji President KASSIA 18-08-2008

MCKINSEY 7-S MODEL OF ORGANIZATION STUDY:

The 7-S-Model is better known as McKinsey 7-S. This is because the two
persons who developed this model, Tom Peters and Robert Waterman, have
been consultants at McKinsey & Co at that time. Thy published their 7-S-
Model in their article “Structure Is Not Organization” (1980) and in their
books “The Art of Japanese Management” (1981) and “In Search of
Excellence” (1982). The model starts on the premise that an organization is
not just Structure, but consists of seven elements:
Those seven elements are distinguished in so called hard S’s and soft S’s. The
hard elements (green circles) are feasible and easy to identify. They can be
found in strategy statements, corporate plans, organizational charts and other
documentations.
 The four soft S’s however, are hardly feasible. They are difficult to
describe since capabilities, values and elements of corporate culture are
continuously developing and changing. They are highly determined by the
people at work in the organization. Therefore it is much more difficult to plan
or to influence the characteristics of the soft elements. Although the soft
factors are below the surface, they can have a great impact of the hard
Structures, Strategies and Systems of the organization.
McKinsey 7S model involves seven interdependent factors which are
categorized as either "hard" or "soft" element

Hard Elements Soft Elements

Strategy Shared Values

Structure Skills
Systems Style
Staff

"Hard" elements are easier to define or identify and management can directly
influence them: These are strategy statements; organization charts and
reporting lines; and formal processes and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and
are less tangible and more influenced by culture. However, these soft elements
are as important as the hard elements if the organization is going to be
successful. The way the model is presented in Figure 1 below depicts the
interdependency of the elements and indicates how a change in one affects all
the others.
Let'
s look at each of the elements specifically:
Strategy: the plan devised to maintain and build competitive advantage
over the competition.
Structure: the way the organization is structured and who reports to
whom.
Systems: the daily activities and procedures that staff members engage in
to get the job done.
Shared Values: called "super ordinate goals" when the model was first
developed, these are the core values of the company that are evidenced in
the corporate culture and the general work ethic.
Style: the style of leadership adopted.
Staff: the employees and their general capabilities.
Skills: the actual skills and competencies of the employees working for
the company.
McKinsey 7S model with respect to KSSIDC
STRATEGY:
A strategy is the determination of the basic long term goals and objective
of an enterprise and the adoption of the course of action and allocation of
resources necessary for carrying out these goals.
The main strategy of KSSIDC is aimed to provide sustainable advantage to
the small-scale industries through their best service. KSSIDC has a customer
oriented approach that it could encourage small entrepreneurs entering the
field of business.
STRUCTURE:
The Company apart from Board of Directors and Managing Director
General Manager, Chief Managers including a Superintendent Engineer, who
constitute the core of the service management. The Company, apart from its
Head Office at Bangalore has Three Zonal Offices of which, one is situated at
Bangalore, another at Hubli and Third one at Mysore. The Company has
Eleven Division Offices headed by Deputy Chief Managers and 27 Raw
material Depots spread throughout the State of Karnataka. The total staff
strength of the company is 363.
SYSTEM:
Imparting training to the staff on various subjects organized through
KSPBE & other organization. Also organizing computer training programme
to needy staff based on request from the concerned officers of the KSSIDC
with the assistance of the Corporation department. Providing periodical
statistical information to the Government & to other inter-connected
departments.
SHARED VALUES:
The corporation’s principle objective is the promotion and development
of Small Scale Industries in the state. Construction and utilization of
infrastructure especially in backward areas procurement and marketing of raw
materials, technical support and assistance are means to reach the goals. A
concern for results, emphasis on quality and timely work and willingness to
understand problems of the entrepreneurs the staff creed and KSSIDC
constantly strive for this end.
STYLE:
In KSSIDC employees having dynamic & challenging behavior. The
targets are fixed in the beginning of the year and monitored according to the
scheme. The action plan is prepared at the commencement of the year i.e.
April of every year and work proceeds accordingly.
The style is neither strictly top down nor bottom up. It’s more of
transparent; any subordinate can interact with any superior at any time. The
decision making parameter is authoritative.
STAFF:
The functioning and activities of different departments and the personnel
have been aligned to achieve company’s business objectives by giving thrust
on rationalization of man power and focus on proper utilization. The
manpower strength as on 31st March 2008 was 372 of which 59 are women
employees. The proportion of SC/ST employees constituted 26.73%. Three
officers are on deputation from government of Karnataka and 12 officers/
officials have gone on deputation from the corporation to other organizations.
SKILLS:
The KSSIDC has personnel with a variety of skill. For different fields
they have personnel with different talents, skills and experience. It is a
participative democratic system so every decision is taken after discussion
with the personnel. Hence the personnel have good communication skills. The
company as a whole is very much skilled with the availability of intellectual
man power and resources.
 CHAPTER 3

“ORGANIZATION STRUCTURE”
ADMINISTRATION:
TECHNICAL SECTION:

CHIEF ENGINEER
(Vacant)

Supdt. Engineer

Steno

EE-I E.E.-II E.E.-III EE (Ele)

BNG Hubli Mysore

AEEs- AEEs- AEEs-

H.O. & Hubli, MYS,
PNY BGM, MNG
GLB

JE (SG)-Ele-
BNG/Hubli
JEs(SG)- JE (SG)- JEs (SG)-
BNG BGM MYS

J. E.- GLB
 CHAPTER 4

“DEPARTMENTAL PROFILE”
All Departments
1. Industrial Estate Activities:
Information such as allotment of sheds / plots, issue of
notifications, bidding, auctioning, allotment, pricing policy, execution of sale
deeds, resumption of sheds / plots etc. including Co-ordination covering
LA/LC matters.
KSSIDC Constructs/ Develops Sheds and Plots for allotment SSI
entrepreneurs in various Industrial Estates:
Table showing the Dimension of sheds :
Type Size Total Area Plinth Area Open Space
Shed (In Meter) (In Sq. Meter) (In Sq. Meter) (In Sq. Meter)

A 21x43 903.00 500.00 403.00

B 21x26 546.00 264.00 282.00

C 21x18 378.00 171.00 207.00

D 13.5X18 243.00 95.00 148.00

SM 9.50X12.5 119.00 63.00 -

M 4.25X8.5 36.00 28.00 -

Apart from the above KSSIDC has also constructed Flatted Factories in
Peenya, KEONICS, and Rajajinagar.
Table showing the Dimension of Developed Plots:
Plot Type Area In Sq.Meter
L 785.00
M 1045.00
N 2049.00
P 903.00
Q 546.00
R 378.00
S 243.00
Odd Size

NOTIFICATION FOR ALLOTMENT OF INDUSTRIAL STRAY

SHEDS/FLATS/GODOWNS:
Applications are invited from S.S.I. entrepreneurs for being
considered for allotment under BID SYSTEM of Industrial Stray Sheds, Flats
& Godowns available in the below mentioned Industrial Estates in Bangalore
District.
AREA
INDUSTRIAL ESTATE SHED NO. BASE PRICE
(In Sq.Meter)

VEERASANDRA 1st D-82 181.72 6,56,400

stage

VEERASANDRA 2nd C-10 382.81 18,61,600

Stage

C-11 382.81 18,61,600

C-14 382.81 18,61,600

BOMMASANDRA 1st SM-90 116.40 5,75,700
Stage

SM-91 117.20 5,77,700

BOMMASANDRA 2nd B-9 542.85 25,07,400
Stage

HOSKOTE B-61 639.00 16,53,100

C-15 410.39 7,48,400

C-26 410.39 8,85,700

SM-47 90.00 3,05,400

SM-48 90.00 3,00,100

SM-49 90.00 3,10,100

DODDABALLAPURA A-109 989.18 31,21,500

A-110 985.80 29,97,000

B-89 538.89 17,66,700

B-100 680.00 21,05,300

C-63 361.57 12,91,900

D-50 187.62 5,00,700

MAGADI D-3 258.37 2,91,100
RAMANAGARAM C-25 313.10 11,83,900
PEENYA III STAGE C-99 338.65 18,91,000
RAJAJINAGAR - G-17 22.14 2,82,200
(GODOWN)

G-29 & 30 52.73 6,44,200

G-61 29.13 3,48,200

G-98 22.19 2,82,700

DYAVASANDRA - G-19 56.51 2,89,700
(GODOWN)

G-20 38.02 2,25,800

G-22 38.02 2,25,800

G-25 38.02 2,25,800

G-26 38.02 2,25,800

II. INDUSTRIAL FLATS:

BASE
AREA PER FLAT PRICE PER
INDUSTRIAL ESTATE Flat No.
(IN Sq.Meter) FLAT

ELECTRONIC CITY BL-I: A- 112, 205, 160.00 14,16,200

206,
212, 308
(FLATTED SHEDS) BL-II: A-202, 160.00 15,93,200

BL-II: A-203, 160.00 16,21,200

BL-II: A-307,308, 310 160.00 14,16,200

BL-III: A-307, 314 160.00 14,16,200

BL-I: B-203,309, 128.00 11,30,300

BL-II: B-306 128.00 11,30,300

BL-III: B-202,302 128.00 11,30,300

BL-I: C-311 112.00 9,87,500

BL-II: C-111, 204, 304 112.00 9,87,500

PEENYA II STAGE F-2, 5, 6, 7, 8, 10, 11 301.49 27,44,200
& 12
PEENYA III STAGE FF-6 & 7 302.23 28,77,400

SF-10 & 11 302.23 28,77,400

RAJAJINAGAR GF-3, SF-3 47.18 10,54,700

FF-5 69.60 16,00,400

LAND ACQUISITION DETAILS:
Sl. No. Description Extent in Acres.
1 Total Acquisition (since Inception) 2844.00
2 Through KIADB 1930.00
3 Through Govt. & Other Agencies 913.00

FOR REGISTRATION OF LAND/SHED:

The concession of Stamp Duty exemption and reduction of
Registration Charges will be available for lease deeds, lease-cum-sale and
absolute sale deeds executed by industrial units in respect of industrial plots,
sheds, flats allotted by State Infrastructural Developmental Agencies viz.
KIADB, KSSIDC, KEONICS, KSIIDC etc. and industrial co-operatives.
Industrial workers housing tenements and residential plots developed by
KSSIDC, KIADB and KEONICS will also be eligible for concession of stamp
duty exemption and reduction of registration charges.
The concessions will be as under:

Extent of exemption on Regn.Charges applicable

stamp duty
Zone Tiny and Medium & Tiny and
Medium & Large
Small Scale Large Scale Small Scale
Industry
Industry Industry Industry

A Nil Nil Normal Normal

B 100% 50% Re. 1.00 per 50% of normal charges

Rs. 1000

C&D 100% 100% Re. 1.00 per Re.1 per Rs.1000

Rs. 1000
TERMS & CONDITIONS:
1) Prices indicated are approximate / tentative and are likely to increase or
decrease depending upon the cost components / actual dimensions of plots /
bit of lands. As per the rules of the Corporation. If there '
is any excess area
available more than the notified area, cost will be applicable as per the rates
fixed by the Corporation.
2) The Prescribed Application Forms and supplementary Application Forms
in duplicate along with the copies of sketches of the Plots can be obtained free
of cost from the office of the Chief Manager (IEs)-Zone-I or from the
respective Offices of Deputy Chief Manager (IEs)- Bangalore- Urban/ Rural -
K.S.S.I.D.C. LTD., Industrial Estate, Rajajinagar, Bangalore - 560010 /
DCM(IES), Peenya Division, KSSIDC LTD., PEENYA-SECONDSTAGE
,BANGALORE-58 on any working day during the Office hours or can be
down loaded from our website www.kssidc.kar.nk.in.
3) The filled in Application ·Form along with the supplementary application
form should be submitted in duplicate accompanied by copies of the SSI
Registration Certificate issued by the Department of Industries & Commerce,
detailed Project Report, documents in support of Educational Qualification,
with Latest Photograph, Caste Certificate in case of SC/5f applicants along
with Earnest Money deposit of 5 % of the cost of the Shed/ Plot /
Flat(refundable in case of non allotment &adjustable towards cost of Shed
/Plot / Flat in case of allotment and subject to forfeiture in case of failure to
accept the allotment of the Shed/ Plot/Flat ) PLUS scrutiny fee of
RS.562.00(inclusive of taxes & non refundable) by way of Demand Draft
drawn in favour of KSSIDC Limited payable at Bangalore. In case of SC/ST
applicants and women entrepreneurs the Scrutiny fee is Rs.225.00 (inclusive
of taxes & non refundable). Applicants shall enclose all the relevant
supporting documents in support of the information furnished in the
application & in supplementary application.
4) In case of existing units, documents like Audited Balance sheets (for 2
years)
& LT. Returns (for 3 Years) or PMT issued by DIC, or Vat Registration
Certificate etc.are to be famished.
5) The filled in application form with all enclosures may be submitted on
Or before 5.30 PM on 31.03.09 at the Office of Chief Manager (IEs) Zone-
At the respective Offices of Deputy Chief Manager (IEs)- Bangalore Urban
/ Rural - K.S.S.I.D.C. LTD., Industrial Estate, Rajajinagar, Bangalore -
560 010 / DCM (IES), Peenya Division, KSSIDC LTD., PEENYA-SECOND
STAGE, BANGALORE-58.
6) Allotment of Shed / Plot /Flat is on "AS IS WHERE IS BASIS", 99%
Of the allotment price of the plot is to be paid within 45 days from the date of
Communication of the allotment. In case of sheds / Flats, the allottee will
have the option of either payment of 99% of the shed / Flat price in one
Lump sum with usual six years lease period or the payment with EMI'
s spread
Over the lease period of six years.
7) Pre-qualification of application to determine eligibility will be followed
& the applicants eligible as per pre-qualification criteria will be considered
for allotment.
8) 15% of the Plot / Shed /Flats will be allotted to SC, 3% to ST and 2%
to Nomadic Tribes applicants, 3% for specially enabled persons with overall
30% representation to the Women Entrepreneurs.
9) Applicants belonging to SC and ST category are eligible for a subsidy
amount of 40% of the Shed / Plot price subject to maximum of Rs. 2.00
Lakhs. In case of allotment more than one Shed / Plot to the same applicant
Subsidy will be limited to 40% of the total price of the allotted Shed / Plot
subject to maximum limit of Rs.2.00 Lakhs.
10) An applicant may apply for one or more than one Shed / Plot / Flat
& in such cases, separate EMDs are to be paid for each Shed / Plot. / Flat.
11) Applications in the prescribed format without requisite enclosures and
EMD are liable to be rejected.
12) Allottees shall construct the industrial work shed / factory building
Within a maximum period of 2 years from the date of taking the possession
ofthe plot and after getting approval of plans from the competent authority. In
case of sheds, Industry shall start within one year from the date of
Possession.
13) Sale deed of Shed / Plot will be issued only after completion of
Minimum required lease period of 2 years and functioning of the unit and
Fulfillment of other terms and conditions indicated in the allotment letter &
the Lease cum Sale Agreement.
14) In case of non-starting of the Industry within the stipulated period
allotment of the shed will be cancelled and the amount paid will be forfeited.
Likewise, the allotment of plot will also be cancelled and the amount paid will
be forfeited if the allottee fails to construct the building and start the'Industry
within the stipulated time.
2. Commercial Department:
Identifying Market Demand for supply of Industrial Raw Materials,
procurement of industrial Raw Materials and its Geographical distribution to
the Zonal Offices, identifying the end users for issue of Raw materials,
invoicing, supply chain management, pricing, offering discounts, publication
of cinematic films, finalizing tenders for transportation etc. Entrepreneurial
Guidance Cell subsidy for Iron and Steel disbursement and allotment / Iron
and Steel to SSI units, demand survey of Iron and Steel, placing indent and
requirement before the ministry of steel.
In the Commercial Department they perform the activities of sale of raw
materials.
The Commercial Department structure as shown in following chart,

General Manager
(PR/Coml)

Chief Manager

Deputy Chief Manager

Manager

Assistant
Managers

Group- III
(Junior Assistants)

Group- IV
(Senior Assistants)
 PROCUREMENT AND DISTRIBUTION OF RAW MATERIALS
(A) PROCUREMENT
Raw materials like Iron and Steel are procured from Steel Authority of
India, Tata Iron and Steel Co., Rastriya Ispat Nigam Ltd., and Jindal
South West.
Government of India allocates the quantity of Steel once in a year to
KSSIDC with Rs.550/- rebate per month.
Items like MS Angles, MS Channels, MS plates, HR Sheets , CR Sheets,
GP Sheets, Joists, MS Rounds, TMT Bars (Thermo Mechanically Treated
for extra high strength) etc.
B. DISTRIBUTION
KSSIDC has established 23 outlets for distribution of raw materials
throughout the State.
One big stockyard with railway siding facility in Bangalore.
Materials will be stock transferred to all the 23 depots from stockyard.
Needy SSI units purchase the materials from the nearest outlet.
KSSIDC has also allotted lands in strategic locations adjoining
State/National highways for establishing Petroleum Product outlets
On long lease basis.

CONSIGNMENT AGENCY UNDER RAW MATERIALS ACTIVITY

This Corporation has been appointed as the ‘Consignment Agent’
for Karnataka for the products manufactured by Kerala State Bamboo
Corporation Limited, Kerala under the brand name “BAMBOOPLY”.
Bamboo Plywood is made out of Bamboo Mats and Siler Oak Sheets. Bamboo
Plywood is water-resistant, heat resistant, termite proof, and economical, long
lasting, fire retardant, artistic and eco-friendly. It is ideally suited for
partitions, false ceiling, furniture, shutters, and bus seat backings and for
concrete shuttering. This plywood’s are also ideally suited for veneering and
for storage of food grains.
Bamboo is a fast growing grass, which is naturally available in abundance in
the forests of South India. Bamboo fibers are stronger than traditional
plywood and consequently cheaper than conventional plywood of equal
thickness.
Bamboo plywood has natural weaving pattern and looks elegant
which makes them versatile in use. Bamboo Plywood of different thicknesses
and sizes will be marketed through our Raw-material outlets.
KSSIDC IS OF CONSIGNMENT AGENT IN KARNATAKA FOR THE
PRODUCTS OF KERALA STATE BAMBOO CORPORATION
LIMITED MANUFACTURERS BAMBOO BOARD FACTORY:
Decorative laminations from the Strongest Natural Bamboo Fibre.
Water & Heat Resistant, Termite Proof, matchless in strength, Durable,
Elegant, Eco-friendly, wood, Substitute Material.
MULTIPURPOSE USES
False ceiling, Partition, Panelling, Table, Tea poy Top, Interior Decoration,
Auto Body Building etc.,
PRICE LIST
Feet: 6’ x 3’ 6 ‘x 4’ 8’ x 4’
Meter: (1.83x0.92) (1.83 x 1.22 ) (2.44 x 1.22 )

Sl. Thickness Rate per Rate per RATE PER SHEET (In Rs)
N0 Sq.Meter. Sq.Feet. 6’x3’ 6’x4’ 8’x4’
(In Rs) (In Rs)
1 3 mm 172.20 16.00 288.00 384.00 512.00
2 4 mm 199.10 18.50 333.00 444.00 592.00
3 6 mm 274.40 25.50 459.00 612.00 816.00
4 9 mm 387.40 36.00 648.00 864.00 1152.00
5 12 mm 473.40 44.00 792.00 1056.00 1408.00

1) The rates are net Ex-Factory, excluding taxes.

2) The rates are subject to change from time to time.

The company has also established 27 Raw-material depots

throughout the State to cater the needs of SSI units. The is company is
currently handling Industrial Raw Materials like Iron & Steel, Pig Iron,
Paraffin Wax, Coal & Coke, IPCL products. The industrial Raw Materials are
produced from main Steel producers namely SAIL, TISCO, IISCO, VSP, &
coal India ltd.
The KSSIDC is also acting as a acting as a consignee to distribute
IPCL Products marked by Reliance India ltd to cater the needs of SSI units at
Bangalore, Hubli & Mangalore.
The KSSIDC is also distributing the raw materials required by
Government Departments. & KSSIDC has also established centralized
 Stockyard with Railway siding facility at Channasandra Stockyard is capable
of handling more than 1,00,000 Mts. Of Iron & Steel Materials including
Coal & Coke.
The ministry of coal Government of India has announced New
Coal Distribution Policy for the benefit of Small & Medium Industries to
procure their requirement of Coal through a State Nominated Agency.
Under the above Scheme the Government of Karnataka has an s
nominated KSSIDC as State Agency for distribution of Coal to Small &
Medium Industries in the State those requirements is below 4200 tonnes per
Annum. Accordingly, KSSIDC entered with Fuel Agreement with M/s Western
Coal Fids Limited Nagpur, Maharashtra & lifting the Coal & distributed to the
Registered Small & Medium Industries in the State.

KSSIDC is also initiating to distributable receipt of Indian Oil

Corporation Limited (IOCL) products like Plastic Granules, Packed Bitumen, &
Paraffin Wax, etc.

3. Engineering Department:
Inviting Tenders for construction activities awardal of
tenders. Contractor’s management, infrastructural development in Industrial
Estates, maintenance of Civil Works, building management and all functions
relating to Engineering Department and Electrical works.
NOTICE INVITING QUOTATIONS
(For Quality Control Services)
1. KSSIDC intends to take up massive construction activity at various
places in the State. The works taken up are WBM roads, Metalling,
Asphalting to the roads in Industrial Estates, Drainage works, Construction of
sheds, M.S. Buildings, Common Facility Centre’s, Formation of new
Industrial estates, Residential layouts under Kayakanagara Yojana etc.
2. KSSIDC intends to appoint Third Party Quality Control/Quality
Auditing Agencies for the above said works. The details of proposed works
are at Annexure-‘A’.
3. Interested agencies may quote their lowest rates for the quality
auditing of the above works either in lump sum / on percentage basis. The
terms and conditions are indicated below:
TERMS & CONDITIONS
TERMS & CONDITIONS FOR QUALITY CONTROL/QUALITY
AUDITING SERVICES FOR KSSIDC WORKS.
# % "

& '

Buildings:
A minimum of 3 visits will be carried for quality inspection under the
following stages:
After excavation for foundation- for inspection of soil and confirmation of
type of foundation recommended.
b) Prior to casting of plinth slab/beam.
c) Prior to slab concreting. For inspection of shuttering and reinforcement
fabrication.During finishing works in progress for verification of quality of
construction, &overall examination of building, etc.
Roads
Inspection of pre-site conditions before work is taken up, after formation of
roads for inspection of type of soil and sub-base.
Inspection of WBM road formation, metal collection and metalling process.
Inspection of pre-road condition, material collection, inspection of asphalting
process.After completion of WBM road/asphalting road for inspection and
verification.
Culverts / CD works / Drainage
After excavation of foundation - for inspection of soil and confirmation of
type of foundation recommended.
Prior to casting of slab for culvert / CD works and casting of PCC / SSM
works in drains.During finishing works in progress for verification of quality
of works, overall examination of finishing works in culverts / CD works and
drainage.
PARTICIPATION IN EXHIBITIONS
The Company up to 1980 participated in a large number of National and
International exhibition as a part of dissemination of information as well as to
create Marketing Outlets for the products of SSI units. Participation in the
International Exhibition has resulted in securing substantial export order by
the SSI units. With this expertise the Company looks forward to help Export
Units to obtain their orders.
The Company up to 1980 participated in a large number of
National and International exhibition as a part of dissemination of information
as well as to create Marketing Outlets for the products of SSI units.
Participation in the International Exhibition has resulted in securing
substantial export order by the SSI units. With this expertise the Company
looks forward to help Export Units to obtain their orders.
OTHER ACITIVITIES:
The Company as a nodal agency for Co-Ordination with
Indian Standard Institution set up a laboratory at Peenya Industrial Estate for
ensuring the quality of the products manufactured in the State. This laboratory
provides modern testing facilities for types of products manufactured in
Engineering, Chemical, Electrical, Electronics and other similar areas. This
project with an investment of Rs. 100 Lakhs. Is financed by the State Govt.,
KSSIDC, KSFC, KSIIDC, NGEF, MML and IDBI. Further, the cost of
standardization and licensing fee will also be kept to minimum since the
laboratory will work on no profit basis. Likewise National Institute of Design
have come forward to associate with KSSIDC in setting up a branch of the
National Institute of Design at Industrial Estate, Rajajinagar and is extending
its services for the benefit of the small scale industry in improving the product
design and allied matter. Necessary infrastructure facility has been provided
by KSSIDC to this center.
Company has also provided the accommodation to National Productivity
Council for maintenance and service center at Peenya for the benefit of the
Small Scale Industries.
ENTERPRENEURAL DEVELOPMENT PROGRAMME.

The Company is extending necessary assistance for

organizing Entrepreneurial Development Programmes in various parts of the
State in association with TECKSOK and other commercial banks with a view
to identify the talents and to improve the quality of Entrepreneurial skill
amongst the educated youth.
SCOPE OF WORK :
KSSIDC requires support services and expertise for:
(1) Identification of lands suitable for establishment of Gems & Jewellary
Parks, Apparel Parks, Comprehensive Industrial Estates, and Housing
establishment for industrial workers. Establishment of functional industrial
estates throughout the State.
(2) To set up permanent industrial exhibition and convention centers in and
around Bangalore.
(3) Marketing vacant properties throughout the State of Karnataka.
(4) Identification of ideal locations and suitable lands for establishing
projects of the Corporation.
(5) Preparation of Project reports for the various projects detailed in (1) to
(4) above.
 (6) Negotiations with Banks / Financial Institutions for arranging finance
and for completion of the projects of the Corporation.
(7) Negotiations with statutory and other agencies for implementation of the
projects.
(8) Evaluating tenders from construction agencies and preparing a detailed
report for the consideration of the Managing Director.
(9) Arranging for joint ventures with land owners / investors.
(10) Undertake to prepare necessary plans and obtain approved plans from the
concerned Agencies like local bodies and also ensure that the requirement of
pollution control and other statutory bodies are also met. Apart from this, they
should make necessary applications and follow up and obtain clearances from
the Govt. of India Organizations, Departments, as well as Excise and CBDT
etc., for clearances wherever required and ensure the projects fit into the tax
planning claims and benefits provided under I.T. / Excise Acts.
4. Administration:

Information ccerning manpower, recruitment, termination, promotion,

disciplinary proceedings, transfers, the entire spectrum of human resource
management, Land acquisition matters, interface with Government agencies,
welfare activities of employees and all other information related to human
resources and Administration matters, including liaison with KIADB.
Maintenance of land records of industrial estates and its management.
Providing Securing Guards.

Administration Department Chart

ACTIVITIES OF PERSONNEL DEPARTMENT :
Monitoring the Man Power of KSSIDC and Developing of staff to the
various Sections/Branches/Divisions.
Imparting training to the staff on various subjects organized through
KSPBE and other Organization. An organizing computer training programme
to needy staff based on request from the concerned officers of the KSSIDC
with the assistance of Corporation Department.
Appointment of Security Agencies to deploy Security Personnel to
various Industrial estates depending up on requirement.
Various Staff Welfare Measures under HRD.
Initiation of Disciplinary proceedings against erring Officers/Officials.
Providing periodical statistical information to the Government and to the
other inter-connected departments.
Statistical Information of Officers/Officials working in Head Office and
Branch Offices, KSSIDC as on 21-10-2008
SL No of Employees working TOTA
NO. LOCATIONS L
TECHNICAL
ADMN
1 Head Office 178 16 194
(In & around Bangalore)
2 Branch Offices 127 24 151
3 Deputation to other 5 11 16
Boards/Corporations/OOD
4 Deputation from other 2 0 02
department to KSSIDC
5 Deputation from 17
TOTAL 312 51 380
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BENEFITS TO THE STAFF MEDICAL FACILITIES
Rs.3000/- per annum to meet out-patient medical expenses @ Rs.1,500/-
for every six months on production self certificate.
Rs.3000/- per annum to meet expenditure on diagnostic tests as Out-
patient expenses against production of bills from the recognized hospitals.
Spectacles re-imbursement of Rs.300/- for three times during service.
Reimbursement of In-patient expenditure at all recognized hospitals for
self & dependents. The recognized hospitals list includes WOCKHARDT,
MANIPAL, MALLYA, NARAYANA HRUDAYALAYA, HOSMAT, Etc.,
as per the norms of the Company.
Staff Benevolent Fund Trust (SBF) is in existence in which the
management is contributing Rs.30, 000/- p.a.to the trust for the purpose of
interest free Bridge loan to the medical treatment. Employee’s contribution is
at Rs.5/- per employee per month. In case of death while in service a sum of
Rs.10, 000/- will be given by SBF Trust to the legal heirs.

THE NEED & REQUIREMENT

KSSIDC desires to appoint consultants to provide guidance for
commissioning various projects of the Corporation detailed as above. The
consultant should possess an in-depth knowledge in identifying the lands
required for the projects and arranging the finance required for the projects at
a reasonable rate of interest. The consultants are required to be involved in
the projects from the project preparation stage till the completion of the
projects including marketing of the properties developed. The consultant
should have necessary infrastructure, expertise and human resources required
for the said purpose. (Consultant should have technical skills, knowledge, and
qualified staff in the technical fields pertaining to the project for preparation
of Project Reports and monitoring projects, which are going to be undertaken
by the Corporation). Thorough understanding of the geographical location
and the ability to liaison with other Government departments / agencies and
others is a basic and primary requirement.
5. Public Relations:
Maintain of stock register’s and stock information
Release of notifications, paper advertisement, procurement and maintenance
of vehicles, purchase of all types of stationeries and Office furniture’s,
subscription to news papers and periodicals, maintenance of Office
equipments like fax, telephone, Xerox, protocol maintenance of stock
register, stock verification etc.
Assistant Public Information Officers and Public Information Officers are
advised to address the grievances of the citizens in the light of the right to
information act. In case of any clarifications or doubts on this, the Company
Secretary of the Corporation may be contacted.
Public relations are the ongoing effort to create and maintain a positive
image of your organization in the eyes of the public. It is important that the
public thinks about you in a positive way because all organizations need to be
trusted and supported by their target group, constituency and/or members.
People who use your services will expect you to be helpful, friendly, efficient
and professional. Most people will contact you by visiting your office or by
phoning you. This means that the phone and office are two of the most
important areas where you should create a positive image.
In case interaction with the public is bad, it can have a devastating effect
on your organization’s reputation. It is much easier to build a good public
relations culture in your organization, than it is to reverse a bad image once it
exists. All these things KSSIDC adopted in good manner all employees
treated outsiders (public) as very reverence feeling so people are very much
satisfied with their co-operation so they people called KSSIDC organization
as “Trust Like Never Before”.
6. Finance Department:
Fund management, asset management, all information pertaining to finance
and accounting functions including preparation of financial accounts, tax
management, book keeping, compliance of all statutory regulations
concerning financial and tax management, information relating to Industrial
Estate accounts, Commercial Accounts, Works Accounts etc.
In the Finance Department perform mainly the activities of Financial &
Internal Audit Activities.
The Finance Department structure as shown in following chart,

General Manager
(II/IEs)

Chief Manager
I/C

Deputy Chief Manager

(C.A)

Manager

Assistant
Managers

Group- III
(Junior Assistants)

Group- IV
(Senior Assistants)
Financial Results
Sl. Particulars 2007-2008 2006-2007
No
1 Gross Income 10845.80 7768.03
2 Gross Expenditure 9726.62 7244.71
3 Profit before Tax 1119.18 523.32
4 Tax Provisions 411.00 311.29
5 Net Profit-after adjustments 747.58 233.32
6 Proposed Dividend 123.32 49.32
7 Surplus for the Year carried 599.30 175.62
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
A. Method of Accounting:
1. The books of Accounts are maintained on accrual system of accounting &
recognize significant items of Income & Expenditure on accrual basis. The
financial statements are prepared under historical cost convention & in
accordance with generally accepted accounting principles & provision of
Companies Act 1956. The accounts are generally prepared keeping the relevant
Accounting Standards prescribed by Institute of Charted Accountants of India to
the extent applicable to the activities of the company. However in the following
cases Cash accounting is followed;
a) Accounting of water charges received from the allot tees in industrial
estates.
b) The service & maintenance charges as per decision of board made during
1990 received from the allottees maintenance of industrial estates.
c) Premium paid on the Insurance cover of the Assets of the company
including current assets.
d) Insurance claims accounted as & when received.
e) Encashment of leave surrendered by employees while in service.
f) Custodian Charges received from KSFC in respect of Sheds Seized by
them.
B. Income Recognition:
The rental & other dues from the allot tees of Hand Tools Project,
Antharasanahally Industrial Estate, will be considered on receipt basis after
rehabilitation proposal sanctioned. No income under this head is so far been
considered in the accounts in view of sickness of all the units & there in ability
to meet the Company’s demand.
Terminal incomes if any, arising on account of seized sheds where no disputes
are pending from ex-allottee are recognized on their allotment.
C. Fixed Assets:
The Gross block of Fixed Assets is shown at cost, which includes taxes, duties
& other identifiable direct expenses in acquisition of fixed assets.
In cases of factory sheds, which are let out either on rental basis or used by
KSSIDC are treated as Fixed Assets & the cost includes prorated infrastructure
expenditure in the same manner as charged to the other entrepreneurs.
D. Depreciation:
The company decided to account the residual value as under:
a. In respect of Assets where the value remaining in books, before providing
such additional depreciation, shows residual value to the extent of 5%
b. In respect of Assets where after providing Current year depreciation , the
residual value remaining to the extent of 5% or below
As additional depreciation in that year & charged to P&L Account in that year
& a separate disclosure on the effect of providing such additional depreciation
will also be shown in the notes to account in schedule AB.
E. Investment:
The investments are shown at cost. Provision for diminution in the value of
Long-term investments is made only if such decline is other than temporary in
the opinion of the management.
F. Inventories:
a. Loose tools Depreciated at 15% on W.D.V.
b. Industrial Raw materials stock in trade valued at cost or realizable value,
whichever is lower, the Company has adopted FIFO method for the purpose of
valuation.
G. Retirement Benefits:
Retirement Benefits are dealt with, in the fallowing manner. Contributions
to Provident Fund are accounted on accrual basis with corresponding
contribution to regional Provident Fund Authorities.
H. Small Scale Industries Promotional & Development Expenditure:
The company contributes to certain Institutions/Associations engaged in the
promotion & development of Small Scale Industries either in part or full to meet
revenue and/or of capital expenditure of such institutions as decided by board &
such expenses are accounted as revenue expenditure.
I. Prior Period Items Etc:
Adjustments arising due to Errors or Omissions in the Financial Statements
of earlier years are accounted.
J. Segment Accounting Policy:
Policy on Primary Segment Reporting: The main activity of the Corporation
consists of establishment of Industrial Estates & Trading in Industrial Raw
material to facilitate the development & growth of the Small Scale Industries in
the State of Karnataka. Accordingly, for the purpose of the Segment Reporting,
the Corporation has identified two business segments Industrial Estate Activity
& Industrial Raw material Activity.
K. Provision for Current & Deferred Tax:
Provision for Current Tax is made after taking in to consideration of
benefits admissible under the Provision of Income Tax Act of 1961.
Deferred Tax resulting from “Timing difference” between book & Taxable
profit is accounted by using tax rates & laws that are enacted or substantially
enacted as on the balance sheet date. Deferred Tax Asset is recognized &
accounted only to the extent that there is a reasonable certainty that the asset will
be realized in future.
L. Grant & Subsidies:
Grants received from Government of Karnataka are fully credited to
deferred Government Grants account & are being accounted as under:
a. In respect of Government Grants related to depreciable Fixed Assets, are
being allocated to income over the period & in promotion in which depreciation
on the Assets is charged.
b. In respect of Grants received for non- depreciable Assets, based on policies
formed by Government & Management proportionate value of selling price
fixed for the Shed is transferred to individual allot tees account as & when
Allotment is made & possession is given on Lease-Cum-Sale basis or out-right
basis.
M. Borrowing Costs:
Borrowing Costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost of such assets.
A qualifying asset is one that necessarily takes substantial period of time to get
ready for intended use. All other Borrowing Costs are charged to Revenue.
N.14. Contingent Liabilities:
These are disclosed by way of notes to the Balance Sheet. Provision is
made in respect of those contingencies, which are likely to materialize into
liabilities after the year end, till finalization of accounts & have material effect
on the position stated in the Balance Sheet.
O.15. Related Party Disclosures:
Parties are considered to be related if at any time during the reporting period
one party has the ability to control the other party or exercise significant
influence over the other party in making Financial and/ or operating decisions.
As the company is State Controlled Enterprise related party disclosures are not
provided in the Financial Statement in respect of related party relationship with
other State Controlled Enterprises & transactions with such Enterprise. However
in respect of transaction between related parties during existence of a related
party relationship, a separate disclosure is being made.
7. Audit:
Scrutiny of files which requires certification by the Internal Audit
Department, pre-audit of files concerning issue of sale deeds, inspection of raw
material godowns, issues relating to Audit Sub-Committee of the Board, Stock
verification of Iron and Steel etc.
The company has internal audit system to commensurate the size & nature
of its business. However, the scope & extent of internal audit, needs to be
enlarged having regard to the complexity & diversified operations of the
company. The period of coverage has to coincide with that of the financial year
& the reports should be available for review.

8. Legal and Secretarial:

Information relating to the Board Meetings, Sub-Committees of the Board,
Agendas to the meeting, minutes of the meeting, constitution of the Board and
its Sub-Committees, statutory compliance of Corporate Laws as applicable to
the Corporation, Statutory Registers, Information relating to legal cases like
filing of suits, Writ Petitions, Compliance of the Court / Tribunal / Commissions
orders, information relating to the Advocates on the panel, Information
regarding legal opinion, information relating to committee / Board / General
Meetings, details of Directors / Share holders etc.

Main activities:
Contesting court cases.
Furnishing legal opinions.
ADVANTAGES IN HAVING SSI UNIT IN KSSIDC INDUSTRIAL
ESTATE:
KSSIDC functions for all practical purposes like a core corporate body.
Estates are marked with a difference from Normal Private Estate. The
advantages to be a part of KSSIDC are:
1. KSSIDC Land is for Industrial Purpose. So no need to waste time for
N.A./NOC. Establishes its estates after verifying the viability and Water, Power,
Linkages, Communication, disposal of waste the entrepreneur gets a really
developed and planned area.
2. KSSIDC estates are provided with required amenities like Training
institute, P&T office, dispensary, police chowky, community garden banks
canteen etc.,
3. All titles related to land/building within KSSIDC estates are free from any
encumbrances and are easily marketable.
4. An entrepreneur can start the industry by collecting necessary possession
certificate and by paying necessary EMD.
5. KSSIDC provides ready to occupy sheds for immediate starting of
industries and also provide Gowdown for storage of its materials.
6. KSSIDC being a Government Organization is, transparent and of the prices
of land/building. The prices so fixed are accepted by Financial Institutions for
quick approval of loans.
7. KSSIDC estates, once declared as notified area, are free from Local Taxes
And Octroi.
8. KSSIDC estates, provides a unique opportunity to entrepreneur cluster
benefits related to Raw material, market technology services, linkages etc.,
9. Any up gradation programme undertaken in KSSIDC estate will be
advantage to all industries located therein.
10. KSSIDC provides special services in acquiring and allotting land to SSI
entrepreneurs.
11. KSSIDC allots land on top priority basis to start industry by SC/ST/SEDC
applicants, further to needy SC & ST units of Backward areas will be paid
subsidy amount and also reduced payment of EMD / application / scrutiny fee.
12. KSSIDC divisional offices established in the state will have raw-material
depots to distribute raw materials to SSI units.
13. KSSIDC estate provides ISI testing units to help SSI units to process quality
products.
14. KSSIDC collects the installment amount due from shed Allottees on annuity
method. KSSIDC estates where SSI units established will get easy loans from
financial institute and nationalized banks for purchase of machinery and also
loans to purchase raw materials.
LIST OF MAJOR PROJECTS HANDLED BY KSSIDC
1. A prestigious Government Tool Room Training Centre (GTTC) was
established with the assistance of Dutch Government at Industrial Estate
Rajajinagar.
2. An exclusive garment complex has been established at Rajajinagar Industrial
Estate to accommodate garment units.
3. Multi-storied complexes were established at Electronic City industrial estate
Bommasandra to accommodate electronic industries and Software Technology
units.
4. ISI Complex at peenya established to test and certifies the product
manufactured by SSI units.
5. Multi-storied complexes with flatted factory accommodation established in
each of the three stages of Industrial Estate Peenya to cater the needs of light
engineering industries, garments, electronics and others industries.
6. Multi-storied Commercial Complex established at Industrial Estate Shimoga
Multi-storied Commercial Complex was established at Industrial Estate
Gulbarga.
7. Power loom sheds for KSPDC at Siguli was established.
8. Morarji Desai Residential School Complexes at five places in Karnataka was
established.
JOINT VENTURE PROJECTS:
The Company has entered into an MOU with M/s Karnataka State Industrial
Investment Development Corporation to construct Information Technology and
Bio-technology Park in Rajajinagar Industrial Estate, Bangalore at a cost of 37
Crores. The land owned by company to the extent of 1.6 Acres has been leased
out on Built Operated on Transfer (BOOT) system for 30 years. The
construction is in progress.
FUTURE PLANS:
Developing of New Industrial estates at taluk levels.
Developing of growth Centre at Industrially backward areas.
Providing of effluent treatment plants at required estates.
Rendering of Solid waste Management services.
Improving of Road and drains facilities at the identified developed estates
out of Grants received from Govt. under Integrated Infrastructure
Development Scheme.
Distribution of industrial raw materials to SSI units established at taluka
levels on freight to pay basis.
To act as catalyst for export units.
To extend Hire Purchase Machinery Assistance.
To Promote Small Industry Cluster Development Programme.
To encourage establishment of Mini Tool Rooms and Testing Centre’s at all
the developed estates.
To explore ISO 9000/ISO 14001 certification Reimbursement Scheme for
individual Ancillary/tiny units
KSSIDC future Plans:
Establishment of Industrial Township by acquiring 1032 acres of land at
Ganapathi Halli, Bangalore district.
Establishment of Satellite Industrial Estates near Bangalore for shifting the
units situated in residential areas.
Establishment of Gem & Jewellery Park near Bangalore.
Establishment of 8 kayakanagaras for housing tiny industries.
Industrialization of 79 most & more backward Talukas as per the
recommendations of Dr.Nanjundappa’s report under “Kaigarika Vikasa
Yojane” introduced by Government of Karnataka
Establishment of functional estates for
Food Processing Agro & Horticulture
Garments Cold Storage
Pharmaceuticals Agarbathi
Granites Automobiles
Concessions Offered
Reservation ass per Government policy.
40% subsidy in price for sheds / Plots for SC/ST to a maximum of Rs. Two
Lakhs.
Other subsidies such as Capital Investment Stamp Duty exemption,
Registration charges, Tax concessions etc., will be extended as per
Industrial policy of 2006-2011 of Government of Karnataka.
The main objectives of KSSIDC are as follows:
KSSIDC provides a package of services to SSI units in the
State, which include establishment and maintenance of Industrial Estates all over
the State. KSSIDC Limited provides basic infrastructure facilities to small scale
industries in the State, construction and allotment of sheds / plots to SSI units in
the industrial estates located in Karnataka, procurement and distribution of raw
materials to SSI units, providing technical information and support, and also
participation in the SSI development schemes of the Govt. of Karnataka.

NEW PROJECTS AND VISION:

KSSIDC desires to set up Gems & Jewellary Park, Apparel Park,
Garments Park etc., of International standards and comprehensive industrial and
functional estates at various places in Karnataka. KSSIDC intends to set up
industrial workers housing and industry complexes. It is also intended to set up
permanent industrial exhibition and convention centers in and around
Bangalore. Apart from this the Corporation desires to entrust the work of
marketing its existing properties throughout the State of
Karnataka. Identification of ideal locations and suitable lands for establishing
projects of the Corporation.
 CHAPTER 5

“SWOT ANALYSIS”
SWOT ANALYSIS:
Organizational strategies are the means through which companies
accomplish their missions and goals. Successful strategies address four elements
of the setting within which the company operates: (1) the company'
s strengths,
(2) its weaknesses, (3) the opportunities in its competitive environment, and (4)
the threats in its competitive environment. This set of four elements—strengths,
weaknesses, opportunities, and threats—when used by a firm to gain competitive
advantage, is often referred to as a SWOT analysis. SWOT was developed by
Ken Andrews in the early 1970s. An assessment of strengths and weaknesses
occurs as a part of organizational analysis; that is, it is an audit of the company'
s
internal workings, which are relatively easier to control than outside factors.
Conversely, examining opportunities and threats is a part of environmental
analysis—the company must look outside of the organization to determine
opportunities and threats, over which it has lesser control.
STRENGTHS:
There is flexibility in sheds & plots allotment according to the requirements
& so acquisition of acres of land by the Government.
KSSIDC estates are provided with required amenities like Training Institute,
dispensary office, police chowky, community garden bank canteen, IT park,
etc.,
All titles related to Land/Building with in KSSIDC estates are free from any
encumbrances & are easily marketable.
There is expansion of SSI sector & its share in Industrial Output.
There is mobilization of capital & entrepreneurial skill.
There is Regional dispersal of industries.
There are less industrial disputes.
Effective & supportive from the Top management.
All employees are highly moralized working together in friendly
environment accomplishment KSSIDC Vision.
 Employees achieve success through working as a TEAM (Together
Everything Achieve Maximum).
Open to change, hungry to Learn, Anxious to move quickly to good idea.
WEAKNESS:
There is scarcity of Finance & Credit.
There is no technologically advanced.
There is problem of Raw Material – Absolute scarcity of Raw Material, &
High Cost.
Not adoption of computerized inventory control technique in godowns.
OPPORTUNITIES:
Investments are made from many Large-Scale Industries.
Effective utilization of uncultivated Land.
Make use of all available resources in most effective & efficient manner.
THREATS:
Competition from large companies is increasing.

MISSION STATEMENT
The corporation’s principle objective is the promotion and development
of Small Scale Industries in the state. Construction and utilization of
infrastructure especially in backward areas procurement and marketing of raw
materials, technical support and assistance are means to reach the goals. A
concern for results, emphasis on quality and timely work and willingness to
understand problems of the entrepreneurs the staff creed and KSSIDC constantly
strive for this end.

VISION:
“AN INDUSTRIALLY PROSPEROUS KARNATAKA IS OUR VISION”
Need for the study
The need for study is to acquire in depth knowledge about the
KSSIDC .It helps to compare the theoretical knowledge with practical aspects
during the study one has to acquire knowledge about origin, Growth, current
status & working condition of the organization based on data collected to make a
SWOT Analysis & draw conclusions.
Objectives
To study about different departments & their real working conditions in the
Organization.
To know about the different types of statutory & non statutory welfare
activities provided in the organization.
To know about the work culture rules & procedures & Strength of the
Organization.
To know about the hierarchy of organization span of control.
To know about the maintenance of workforce in the organization.
To analyses current status & future prospects of the organization.
To analyses the relationship between management and workers.
METHODOLOGY:
The study was conducted as to know organization structure in all
departments & their functions at KSSIDC .The study was non descriptive in
nature an attempt was made to know all the organization structure at KSSIDC.
The primary & secondary data are being collected for the purpose of
study. The primary data are collected through discussion interview by taking
prior appointment with concerned executives in all departments. The secondary
data are collected through company broachers, records, annual reports, journals,
etc.
 Limitations of the study
The duration of the study is short & so the data collected may not be
Sufficient.
The information is collected is only for with academic interest.
Data for preparing this project report on organization study based on
Organization report & other secondary data not on the actual position.

However, I made sincere attempt to prepare this internship project report in

systematic manner.
CHAPTER 6

“ANNEXURE”
BALANCE SHEET AS AT MARCH 31, 2008
Sl. No. PARTICULARS AS AT 31/03/2008 AS AT 31/03/2007
Rs. Rs. Rs. Rs.
SOURCE OF
FUNDS
SHARE
HOLDER’S
FUNDS
A Capital 246636000 24663600
B-1 Reserves & 243351936 489987936 183021666 429657666
Surplus
DEFFERED 60959631 111625048
GOVERNMENT
GRANTS
LOAN FUNDS
C Unsecured Loans 149173673 149173673 158240085 158240085
DEFFERED 34700000 32700000
TAX LIABILITY
TOTAL 734821240 732222799
APPLICATION
OF FUNDS
FIXED ASSETS
D Gross Block 445230090 455333848
Less: Depreciation 160459442 151304484
Net Block 284770648 304029364
Capital Work in 4341722 289112370 0 304029364
Progress

E INVESTMENTS 0 0
CURRENT ASSETS,
LOANS &
ADVANCES.
F-1 Inventories 495583347 460502519
F-2 Sundry Debtors 50908791 41085134

F-3 Cash & Bank 100261009 947358521

Balances 5

F-4 Other Current 53760216 33591455

Assets

F-5 Loans and 829675813 686601987

Advances

2432538626 2169139616
2
LESS:
CURRENT
LIABILITIES &
PROVISIONS

G Current Liabilities 183032648 157913805

7 5
H Provisions 163431710 175025023
175416307
8
NET CURRENT 438780065 414997653
ASSETS 8

Misc Expenditure 6928805

to the extent not 132168897
W/off

TOTAL 734821240 732

222
799
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2008

PARTICULARS 2007-08 2006-07

INCOME
I Sales & Commission 780046051 605661541
Y Increase / Decrease (-) of Stocks 37457542 2649225
* Capitalization of I.E Expenditure 2336197 5429357
J Industrial Estate Income 134242553 78341905
K Project Contract Income, Service charges, Sup 378625 1066880
ergs & Grants
L Interest on Deposits & Advances 95672285 69917857
M Other Income 34446297 13736921
TOTAL INCOME 1084579550 776803686
EX P E N D I T U R E
N Cost of sales, Operating Expenses 774959554 536206685
O Staff salaries & wages 90939191 90721311

P Staff Welfare expenses 16691065 15125269

Q Administrative expenses 14552472 14700040
R SSI Dev., Meetings, Seminars & Advt. 25392015 6903514
S Indl. Estates maintenance expenses 5734337 3357459
T Audit Fees & Other expenses 109888 132354
U Directors Remuneration & Other Expenses 594238 945686
V Interest on borrowings 578782 2419597
W Bad. Debts, Unrealized Income & Provisions 29039226 39792161
X Deprn. on Assets and Assets w/o 14071048 14167460
TOTAL E X P E N D I T U R E 972661816 724471536
PROFIT BEFORE EXTRA ORDINARY 111917734 52332150
ITEMS
COMPENSATION from NHAI for Land 0 0
Acquired
 PROFIT BEFORE TAX FOR THE YEAR 111917734 52332150
Less: a) Current Tax 38000000 28300000
Less:b)F B T 1100000 1000000

Less: c) Deferred Tax - Liability (Ref.Note 3 of 2000000 1829239

Sch AB)
PROFIT FOR THE YEAR AFTER TAX 70817734
21202911
Z Add : Excess provision for Tax written 2878266 0
back(Net)/Refund of IT
(-) Previous year tax provision 0 0
Add/(less) : Previous year income-Expenses 1061860 2129631
adjustments(Net)
PROFIT AFTER TAX INCLUDING 74757860 23332542
PREVIOUS YEARS ADJUSTMENTS
Add: Balance profit b/f from last year 113127626 95566124
BALANCE PROFIT AVAILABLE FOR 187885486 118898666
APPROPRIATION
APPROPRIATION:
Reserve for SSI Development 0 0
Reserve for Human Resource Development 0 0
Proposed Dividend 12331800 4932720

Tax on Distribution of Dividend 2095790 838320

BALANCE CARRIED TO BALANCE 173457896 113127626
SHEET
EARNINGS PER SHARE(E.P.S)(Ref.Note 27
of Sch AB
A)BASIC EPS 30.31 9.47
B)DILUTED EPS 30.31 9.47
 CHAPTER 7

“FINDINGS,SUGGESTIONS & RECOMMENDATIONS”

FINDINGS:
Debts considered good & fully secured.
Debts considered good for which company holds no security other than
Personal security of the Debtors.
The company has not accumulated losses at the end of the financial year.
By observing ne t profit of the company of previous years it’s a true sign for
KSSIDC marching towards the accomplishment of vision in an effective &
Efficient manner.
KSSIDC also making effort to improve the sales performance, besides
identifying new areas for diversification of its activities.

SUGGESTIONS:
Provide impetus to technology upgradation infrastructure by forging
symbiotic and mutually beneficial institutional arrangements between
Government Academic - R&D Institutions and Industry.
Enhance value addition in products and processes through rapid technology
upgradation.
Provide Industry access to high quality infrastructure
Create a policy framework to facilitate competitiveness of local industry and
enabling ease of doing business;
Enhance public and private expenditure to build efficient and competitive
Industrial infrastructure;
Assist the tiny, small and medium scale industries to upgrade their
technologies and manufacturing processes to face the increasing competition.
Enable industry to access new markets - domestic and export - through new
Products that meet global standards of quality and competitiveness.
Try to get more monetary incentive from the Government then only possible
to reach the vision within a span of time.
 Try to improve Maintenance activities of industrial plots by using adopting
high level technology in a very systematic manner.
Bidding system in Industrial property is to be continued to augment the
resources in better way.

RECOMMENDATIONS:
As we know , very well that success is not a an overnight performance, it
takes a long period, such things can be targeted & aimed properly when one can
rectify his mistakes certifying his conduct, justify his expense & magnify his
vision. Avoids such mistakes & takes decisions for future &growth of the
company will run précised & perfect way.
Apart from dealing only one industrial Raw Material the company can
explore the possibilities of marketing other products required by SSI Units,
so as to provide materials to other units as well & improve the Company’s
turnover rate gradually.
Net profit of the company will be increased in the year 2007-08
to compare with the previous year. But it is quite low to the company. Hence,
the company as to reduce the operating expenses & increases the Net Profit
of the company.
The company tries to get maximum funds from the State
Government as well as Central Government in order to meet challenges of
global millennium.
Sales activities of the company will be very low & to take
necessary action to overcome this type of problem.
The company should change its Credit Policy & expedite the
collection of
due Debts.
CONCLUSION:
Karnataka is a developing State marching towards its development in
order to push our Karnataka to developed State so that development of Small
Scale Industries is much more essential. Then only possible to see over all
balanced development of our State.

Fully tap the potential of the Small Scale Sector to encourage the
establishment of new tiny & Small Scale industries, particularly in the rural
areas, to effective utilization of available resources in a efficient manner.

Last but certainly not the least as we know India is suffering from the
problem of over-population can be solved in two ways, viz.
By checking the growth of the population.
By improving the economic development of the country.
Improvement of the economy is synonymous with industrial development.
So, Industrial development is one of the means of controlling the problem of
over population of our country.

In such a scenario KSSIDC contributes vital role in development of our state

right from providing land & Industrial Sheds, to assisting with managerial &
technical support, to sourcing of raw materials. & creating interest to the
entrepreneurs to start up new kind & highly advanced industrial activities &
also creating more number of employment opportunities to new entrepreneurs.
BIBLIOGRAPHY
www.kssidc.kar.nic.in
www.google.com
Annual report
Journals
Broachers