RENEWABLE ENERGY

Renewable energy is generally defined as energy that is collected from resources

which are naturally replenished on a human timescale, such as sunlight, wind, rain,
tides, waves, and geothermal heat.

Forms of renewable energy.

There are many forms of renewable energy .

Most of these renewable energies depend in one way or another on sunlight. Wind
and hydroelectric power are the direct result of differential heating of the Earth's
surface which leads to air moving about (wind) and precipitation forming as the air
is lifted. Solar energy is the direct conversion of sunlight using panels or
collectors.

SOLAR:This form of energy relies on the nuclear fusion power from the core of
the Sun. These energy can be collected and converted in a few different ways .
Unfortunately these are currently insufficient to fully power our modern society.

1
An exclusive solar generation system of capacity of 250KWH units per month
would cost around Rs. 5Lacs, with present pricing and taxes. Most of the
developed countries are switching over to solar energy as one of the prime
renewable energy source. The current architectural designs make provision for
photovoltaic cells and necessary circuitry while making building plans.

WIND POWER : The movement of the atmosphere is driven by differences of

temperature at the Earths surface due to verifying temperatures of the Earths
surface when lit by sunlight. Wind energy can be used to pump water or generate
electricity , but requires extensive areal coverage to produce significant amount of
energy.

The economics of wind energy is already strong, despite the relative immaturity of
the industry. The downward trend in wind energy costs is predicted to continue. As
the world market in wind turbines continues to boom, wind turbine prices will
continue to fall. India now ranks as a wind superpower having a net potential of
about 45000 MW only from 13 identified states.

HYDROELECTRIC ENERGY : This form uses the gravitational potential

of evaluated water that was lifted from the oceans by sunlight. It is not strictly
speaking renewable since all reservoirs eventually fill up and require very
expensive excavation to become useful again. At this time, most of the available
locations for hydroelectric dams are already used in the developed world.

India has a huge hydro power potential, out of which around 20 % has been
realized so far. New hydro projects are facing serious resistance from
environmentalists. Resettlement of the displaced people with their lands becomes
major issue.

Wind power industry

Industries involved with the design, manufacture, construction, and maintenance

of wind turbines. The modern wind power industry began in 1979 with the serial
production of wind turbines by Danish manufacturers. The industry is currently
undergoing a period of rapid globalization and consolidation.

2
History

Indian Turbine Industry is growing rapidly as wind energy is the fastest growing
source of renewable energy in the country. According to the analyst in India more
than 90% of wind energy potential could be exploited by 2030. There are huge
local production facilities in India due to the vast demand for equipment by the
wind power industry in the country. Incentives are provided by the central and
state governments to the companies manufacturing wind energy equipment which
contribute to the growth in Indias turbine industry. India has hude demand for
wind turbines and windmill blades.

India today has one of the worlds largest programmes for development of wind
energy products and U.S. companies would take advantage of this huge market.
There are many opportunities available for U.S. companies to offer their expertise
and equipment for wind energy in Indian market. India imports wind turbines,
Windmill blades, wind battery charger, wind energy converters, etc which are used
in energy generation. Wind power is the greatest renewable energy generating
potential in India. U.S. financial services providers today safely invest in this field
with potential for a good profit margin.

Indias agenda include high Energy security sustainable development. The reason
are due to volatile energy prices, high demand for energy. Security and concerns
over environmental sustainability and the global climate change. With proper
incentives wind energy India would meet over 24% of energy needs by 2030
according to global wind energy council ( GWEC ) and the Indian wind turbines
manufacturers association ( IWTMA ). The growth trends of wind power
development in six indian states like Andhra Pradesh, Gujarat, Kerala,
Maharashtra, Rajasthan and Tamil Nadu indicate that more than 90% of wind
energy potential prevails in India which could be exploited by 2030. Need for
installation of high power wind turbines to replace old turbines and lower capacity
machines, development of offshore wind farms and development of hybrid turbines
are some of the factors leading for the rapid growth of wind industry in India. In
1990s the development of wind power in India began and has significantly
increased in the last few years. India is home to one of the worlds largest wind

3
power companies. Tamil Nadu is the state with the most wind generating capacity
and the largest wind park in the world.

Wind farm operation and maintenance companies (Wind

Operators or Wind O&M contractors )

This rapidly growing industry segment assists with the operation and maintenance
of wind farms, under contract with ( other ) companies which own those wind
farms. O&M contracts typically focus on the maintenance of the turbines, towers,
and blades with responsibility for the generation of electricity ( conversion of
mechanical energy to electricity ), but they usually are not responsible for the
actual transmission of these electricity to the grid through electrical substation
which are located at or near the wind farms.

Introduction

India currently is the 4th largest generator of wind energy in the world with an
installed capacity of 8698 MW which is even ahead of Chinas 5899 MW as per
research and projects investment database firm Projects Today. The wind power
contributes 70% of the grid interactive renewable power installed in India. While
the short gestation period of installing wind turbine, and the increasing reliability
and performance of wind energy machines has made wind power a favoured
choice for capacity addition to the country. India today has nearly 25 wind energy
equipment manufactures.

India today has a well developed manufacturing base which includes global leader
Suzlon, accounting for over half of the market.

Robust growth in the countrys Turbine equipment manufacturing industry is

largely driven by the incentives provided by the Central and State government.
Suzlon, an Indian company, emerged on the global scene in the past decade by
2006 had captured almost 8% of market share in global wind turbine sales. Suzlon
is currently the leading manufacturer of wind turbine for the Indian market,
holding some 52% of market share in Indian. Suzlons success has made Indian the
developing leader in advance wind turbine technology.

4
Today there is a huge demand for sophisticated equipments manufactured by
International wind energy equipment manufacturers. A modern wind turbine
consists of about 8000 unique components and such components of related
services are supplied by an estimated 25 to 30 highly specialized companies in
India along with the large number of international suppliers. Indian wind turbine
manufacturers provide operation and maintenance support and also monitor the
field performance of the wind turbines installed by them.

India continues to be a major wind turbine manufacturing hub and has been
attracting a number of international players to its fold. Over the years the in-house
turbine manufacturing capacity has strengthened and this has greatly helped in
aiding the increased demand for wind turbines in the country. At present, there are
as many as 18 wind turbine manufacturers making about 45 models. The annual
wind turbine production capacity is around 4,000 MW, and according to MNRE,
this can be expanded up to 8,000 MW in case of increase in demand.

Increasing competitive pressures in Indian Turbine business due to the reduced

import duties, large number of suppliers and substitute products.

Competitive Landscape

Demand for wind power generation is driven by public support for alternative,
non-polluting renewable energy production methods, along with government
incentives that encourage the production and uses of renewable energy.
Profitability of individual companies depends on strategically locating wind farms
in geographies with sufficient wind conditions and access to electric transmission
facilities. Large companies often have other energy holdings (such as traditional
electricity generation plants and energy distribution operations), enjoy economies
of scale in equipment purchasing.

5
India Aims For 350 GW Renewable Energy Capacity By
2030

The Indian Government is planning to significantly boost the renewable energy

capacity addition target for the medium term as part of its national climate change
policy.

According to media reports, the government may soon announce a target to have
40% power generation capacity based on renewable energy technologies by 2030.
This would translate to around 350 GW by 2030, pushing the countrys expected
total capacity to 850 GW power generation capacity.

India currently has an installed capacity of around 275 GW, with over 36 GW of
renewable energy capacity, contributing around 13% to the installed base.

Leading Indian companies in this field. ( Competitors )

These are the top renewable energy companies dealing in power generation,
installation, commissioning of wind energy turbines and towers.

1) Vestas India.

2) Suzlon Energy Ltd.

3) Enercon India Pvt Limited.

4) Wind World India Limited.

5) RegenPowertech Private Limited.

6) Inox Wind Limited

7) Gamesa Wind Turbines Private Limited.

8) GE Wind Energy Limited.

9) Orient Green Power Limited.

10) Indowind Energy Limited.

6
The Disadvantages of Renewable Energy

1) It is easy to recognise the environmental advantages of utilising the alternative

and renewable forms of energy but we must also be aware of the disadvantages.

2) One disadvantage with renewable energy is that it is difficult to generate the

quantities of electricity that are as large as those produced by traditional fossil fuel
generators. This may mean that we need to reduce the amount of energy we use or
simply build more energy facilities. It also indicates that the best solution to our
energy problems may be to have a balance of many different power sources.

3) Another disadvantage of renewable energy sources is the reliability of supply.

Renewable energy often relies on the weather for its source of power. Hydro
generators need rain to fill dams to supply flowing water. Wind turbines need wind
to turn the blades, and solar collectors need clear skies and sunshine to collect heat
and make electricity. When these resources are unavailable so is the capacity to
make energy from them. This can be unpredictable and inconsistent. The current
cost of renewable energy technology is also far in excess of traditional fossil fuel
generation. This is because it is a new technology and as such has extremely large
capital cost.

7
ENERGY CONSUMPTION.

8
KP Energy Ltd. (Originally known as KP Energy (P) Ltd.)
Indian tradition has worshiped the sun, the wind, the earth and the water as the
sources of life, energy and creation. Today the world faces a critical challenge, the
rising demand of power and an urgent need to reduce the emission of greenhouse
gases. Todays technology provides us a real opportunity to transform the promise
of boundless and clean energy to reality. Wind is the right choice in meeting the
challenge.
Established on 8th January 2010 with dream in its eye to cater the mankind with
Clean and Green Energy.
KP Energy is listed company at BSE SME.
IPO Listing date
Listing date : Thursday, February 25,2016
BSE Script Code : 539686
Listing in : M Group of securities
Issue Price : Rs. 70.00 Per Equity Share
Face Value : Rs 10.00 Per Equity Share

K.P. Energy Limited is very fast growing Company of the group. It concentrates
both on solar and wind energy projects and previously worked at Saurastra and
Kutch in northern region of Gujarat with leading corporate companies in power
sector such as LANCO, WIPRO and INDU projects. KP Energy is also developing
wind farm of 25MW in Bhavnagar and 150MW in Porbandar.

The gross wind energy potential of India is 48,561 MW and a total of about
11,807.00 MW of commercial projects have been established until March 31,
2010.
Gujarat has gross wind energy potential of 10,656 MW, installed capacity till
March 31, 2010 is 1864 MW only,leaving very good scope of development.
KPE has stepped into Renewable Power Generation through Wind Energy
production.
Pilot Project of 25 MW Wind Farm at Palitana is under progress in war footing
basis.
KPE is intend to venture into Solar, Biomass energy sources and cogeneration.

9
Execution started for KPEs Pilot Project, 30 MW Wind Farm at Matalpar
Village. 66KV Evacuation Transmission Line and 33/66 KV Windfarm Substation
shall be completed by Mar2012. KPE has erected Wind Mast at Matalpar to collect
and study practical wind data of the area. K.P. Energy is in possession with another
25 MW Evacuation Permission for its 2nd immediate project. KP Energy has
acquired enough lands for its 04 upcoming Windfarm Projects totaling to 120
MW.

Our Strengths
Unique model and value proposition
In India currently, the trend within the wind energy sector is that Wind Turbine
Manufacturers play a dual role and also act as developers or purely land owning
companies act as developers. Hence, their primary focus is on either selling
turbines or land or partially developed infrastructure. The same is better explained
from the difference in value chains of each player

Manufacturer Value Chain > Manufacturing > Erecting And

Commissioning > Guarantees And Maintenance.
Developer Chain > Site Identification > Contacts And Clearance >
Operation

As part of our business model, we are providing complete turnkey solutions

including on a BOT (Build Operate Transfer ) basis for wind energy clients
which includes on client cost reduction and timely as well as high performance
delivery of the project and not just the turbine or land. We believe that this model
would be able to create a niche for our company in the market and help in creating
a more vibrant wind energy sector in India. We have the early mover advantage of
offering a tailor made wind farm development solution, which helped us to create
development tie-ups and visible grow broader and deeper in wind energy sector
and play a significant role inIndiasrenewable energy success story.

Most renewable energy comes either directly or indirectly from the sun. Sunlight,
or solar energy, can be used directly for heating and lighting homes and other

10
buildings, for generating electricity, and for hot water heating, solar cooling, and a
variety of commercial and industrial uses.

The sun's heat also drives the wind whose energy is captured with wind turbines.
Then, the winds and the sun's heat cause water to evaporate. When this water vapor
turns into rain or snow and flows downhill into rivers or streams, its energy can be
captured using hydroelectric power.

Siting Civil
Layouts Mechanical
Design Electrical
Infrastructure Instrumentation

planning execution

revenue supporting
generation services
Infra development
Operation&Maintenance Land survey
Tailor-made Solution ROW ( Right Of Way )
Value additions acquition
Met Masts
Approvals

11
Vision :

The vision of KP Group is to spread world- wide and offer quality Infrastructural
Development services.KP Group will continue its evolutionary path , attempt to
identify opportunities ahead of the market and position itself accordingly.

Our Mission

The mission of KP Group is to continuously provide all type of Infrastructural

Development solutions under one roof to the corporate sectors world wide.
Customers driven approach and quality conscious products and services shall be
presented with Purity and Protective solutions. Rational commitment and smart
working shall provide effective solutions to clients in such a manner that it adds a
value to their brand.

Our Philosophy :

Company will bring up the youth through educating them and making them stand
up right in the world of professionals.

Our Human Resource :

Our team mates will perform their responsibilities in a very proficient and
innovative style by which they achieve their goals possibly with zero error or
deviations. Our always radiant team mates will endeavor in any condition with
sincerity and dedication.

Our Vendors, Contractors and our Associates shall be the most happy and proud to
be associated with us. They will certainly earn and learn working with us.

Growth through Commitments :

We are concern about Quality, Research and Development and Human Resource
Development. We believe that any business conduct can be ethical only when it

12
sets on the certain core values like Honesty, Integrity, Respect, Fairness,
Responsibility, Sharing and Caring.

The real meaning of our commitments is that each team member conducts the
companys business with integrity, in compliance with laws and System , and in
manner that excludes considerations of personal advantage.

Despite of achieving our set goal, we do not lose the site of our set values ,
commitments and ethics in any circumstances. To us, the means are as important as
the ends

and study practical wind data of the area. K.P. Energy is in possession with another
25 MW Evacuation Permission for its 2nd immediate project. KP Energy has
acquired enough lands for its 04 upcoming Windfarm Projects totaling to 120
MW.

13
R SUCCESSFUL DRIVE OF INDIA:

INDIAs wind energy market started in 1990s, is today worlds FIFTH Largest market.
The Real Drive as Infrastructure Investment has Already Begun Because, In India,
Wind Power is not being conceptualised, it is implemented!
Regional & National Renewable Power Obligations for Discoms
Progressive state level legislation
Policy measures on National Level
Feed-in-tariffs to support new investment
Generation Based Incentives in addition to Special Tariffs by State Govts
Huge potential for generation and ever-growing demand due to rising economy & population

R NEW 25MW Wind Farm Project:

KP URJAVAN

erected KP Energys 66 KV transmission line tower connecting its Windfarm with GETCO Substation
avnagar District . The Tower of Prosperity, linking power, public and environment care

14
- Execution Infrastructure erection activity started for our 25 MW Pilot Project near Palitana, Dist.
Bhavnagar. Evacuation Infrastructure includes 30 MW 33/66 KV Substation, 66 KV Transmission line
from Wind Farm Substation to GETCO Substation, respective Feeder Bays, 33 KV internal Collector lines,
WTG Switch yards.

- K.P. Energy has acquired 2 lac 70 thousand square meters of Govt. lands for the pilot
project.

- We are in process of acquiring 2000 MW Wind Farm sites for our clients.

Company Promoters :

The promoters of the company are

1. Mr. Farukbhai Patel (Managing Director )

2. Mr. Ashish A Mithani( Whole-time Director & Chief Executive Officer )

15
Objects of the issue :

The objects of the issue are to :

1. Setting up of 2.10 MW wind power project as part of their Independent Power Producer
(IPP) initiative , at Matalpar , Bhavnagar , Gujarat.

2. Receive the benefits of listing on SME Platform of BSE Ltd.

Issue Detail :

Issue Open :Feb 15 , 2016 Feb 17 , 2016.

Issue Type :Book Built Issue IPO.
Issue Size :9,20,000 Equity Shares of Rs 10 aggregating up to Rs 6.44 Cr.
Face Value :Rs 10 Per Equity Share.
Issue Price :Rs 60 Rs 70 Per Equity Share.
Market Lot :2000 Shares.
Minimum Order Quantity :2000 Shares.
Listing At :BSE SME.

16
ORGANISATION STRUCTURE.

CMD

CEO COO

VP VP
Marketing Operation

General
Manager

DGM AGM
Operation Accounts

Senior Senior
Manager Manager

Manager Manager

Asst. Asst.
Manager Manager

Senior Senior
Executive Executive

Executive Executive

Junior Junior
Executive Executive

17
CERTIFICATE OF INVESTMENT INTENTION

18
ORGANISATION STRUCTURE

Finance Manager

Charted Accountant

Assistant Manager

Computer and Data Entry

Operator

(1) INTRODUCTION OF FINANCIAL DEPARTMENT.

We are aware that in Economics, the four factors of production considered are
Land, Labour, Capital, Organisation. The term Capital can also be referred to as
Finance. It represents the money that is required to be brought into finance or
fund an activity.

Finance is regarded as the Life blood of business organization because in the

absence of finance all the business activities will be paralized. It is the finance that
keeps the wheels of the business running.

A part of the total capital invested in current assets like stock, Debtors, bills
receivables and cash or bank balance is known as working capital.

19
(2) FUNCTIONS OF FINANCE.

FUNCTIONS OF
FINANCE

RAISING OF WORKING
DISBURSEMEN DIVIDEND
LONG TERM CAPITAL
-T OF LONG DECISION
FUND MANAGEMEN-
TERM FUND
T

1. RAISING OF LONG TERM FUND.

K.P. Energy raises the fund in the company as per the requirements in the company
for the set up of the wind farms according to the customers demand for the set up
of megawatt power they require. Funds are raised from different sources in the
company. Sources such as Equity shares, Term loan or promoters of the company
brings the fund.

2. DISBURSEMENT OF LONG TERM FUND.

Long term fund raised in the company is used by the company for the purchase of
raw material required for the wind farm set up of the customer as per the demand.

3. WORKING CAPITAL MANAGEMENT.

Working capital are the short term fund required to the company for the daily
functioning in the company. Company raises the working capital from two sources
that is CC (Cash Credit) and OD (OverDraft). Company can raise working capital
of 5 crore per year from CC and atmost 2.5 to 3 crorecapital is utilized by the
company.

20
4. DIVIDEND DECISION.

Company has issued the equity shares for raising fund in the company but it has
not yet taken dividend decision as it has issued the equity share in this recent year
that is on 15 February 2016.

(3) SOURCES OF LONG-TERM FINANCE

In a broad sense, sources of long term capital in general can be divided into two
types one is the internal sources and the second is the external sources.

SOURCES
OF LONG
TERM FUND

INTERNAL EXTERNAL
SOURCES SOURCES

1. Bonus shares.
2. Reserve and Surplus. 1. Equity shares.
3. Depreciation reserve. 2. Preference shares.
4. Provision for taxation. 3. Debentures and Bonds.
5. Sundry provision. 4. Term loans.

(A) INTERNAL SOURCES.

A part of the profit is retained in the business in different forms like general
reserve, capital reserve, depreciation reserve, provision for taxation etc. Retained
profit is utilized as capital in business in different forms.

K.P. Energy uses only one internal source for raising the fund that is

Reserve and surplus.

It is the part of premium which was 20 Rs out of 60 to 70 Rs issue price. Share

premium part was 9.20 lakhs to 6.44 crore. This were the capital raised during the
initial public offering.

21
(B) EXTERNAL SOURCES.

1. Equity shares.

It is the most important security used for raising long term capital from the external
sources is equity shares. Equity share holders are the owners of the company with
the voting rights.

As K.P. Energy is a listed company in the SME platform of BSE, raises its long
term fund through equity shares as per the requirements of the company by
presenting the objects of issue to the shareholders. BSE SME listed companies can
raise the long term fund of rupees 1 crore to 25 crore. Company initially raised the
fund for 2.10 MWwind power project at Matalpur, Bhavnagar, Gujarat. Initial
public offering size was 9,20,000 equity shares of rupees 10.

2. Term loan.

K.P. Energy raises its long term fund through term loan from the banks. Currently,
Company started the project of windfarm at site in Porbandar, Which cost rupees
13 crore from which 8.25 crore of term loan was been taken from SBI (State Bank
of India).

Further the required capitals were also raised by the promoters by bringing the
capital in the company. Fund raised in the company is of 60:40 ratio that is of
equity:debt. And any other source of raising the long term fund is not used by the
company.

(4) WORKING CAPITAL MANAGEMENT

A managerial accounting strategy focusing on maintaining efficient level of both

components of working capital, current assets and current liabilities, in respect to
each other. Working capital management ensures a company has sufficient cash
flow in order to meet its short-term debt obligations and operating expenses.

One of the most important areas in day to day management of the firm is the
management of working capital. Working capital management is the functional
area of finance that covers all the current accounts of the firm. It is considered with

22
working capital. Working capital refers to the fund invested in current asset.
Current assets are essential to use fixed asset profitability.

If a companys current assets does not exceed its current liabilities, then it may run
into trouble paying back to the creditors in the short term. The worst-case scenario
is bankruptcy. A declining working capital ratio over a longer time period would
also be a red flag that warrants further analysis. For example, it could be that the
companys sales volume are decreasing and, as a result, its accounts receivables
number continues to get.

Working capital also gives investors an idea of the companys underlying

operational efficiency. Money that is tied up in inventory or money that customers
still owe to the company cannot be used to pay off any of the companys
obligations. So, if a company is not operating in the most efficient manner (slow
collection), it will show up as an increase in the working capital. This can be seen
by comparing the working capital from one period to another; slow collection may
signal an underlying problem in the companys operation.

Since this time, there have been reports of green shoot. Equally, there have been
double dip recession in many parts of the world and even an unprecedented triple
dip recession for some. These factors are directly affecting the availability of debt
finance and businesses ability to secure it. If they are to survive and grow, they
need to be more innovative in their approach to their working capital is likely to be
the cheapest and easiest way to release cash. In this uncertain economy, one thing
is clear that the current economic conditions are likely to remain for some time and
with the limited availability of debt finance, the need to maintain low levels of of
working capital is becoming even more important.

Over the last few years we have seen ongoing growth in the far East and other
emerging markets. This phenomenon has started to drive a change ta a more global
supply chain model as more and more products are manufactured in the territories.
The result is buffer stock due to the long and variable delivery lead times and
shorter payment terms, especially when buying from china. Consequently, there is
increased pressure on working capital in the west and working capital is rising fast
up the corporate agenda. During this period we have seen some business try to ride

23
out of the storm, relying on the goodwill of suppliers and lenders, others have
taken the opportunity to take decisive action to reduce working capital.

COMPONENTS OF WORKING CAPITAL

Working capital are the capital required to the company for its daily functioning.
Analysis of debtors and creditors is done by the company to know that whether
company requireto raise the working capital. If company has more debtors than
creditors, so company may require less working capital to be raised from external
source.

KP Energy analyse the working capital needed for the daily functioning in the
company and raise it through two sources. They are as given below :

1. Cash credit (CC).

Cash credit is a type of short term loan provided to coanies to fulfill their working
capital requirement.

2. Overdraft (OD).

Overdraft is a facility given by the bank to companies, to withdraw money more

than the balance available in their respective accounts.

Earlier in CC (Cash Credit), Company was allowed to raise the working capital of
2.5 crore per year but it is now raised to 5crore per year from which atmost 3crore
is been utilized by the company.

Formula to calculate working capital.

Working capital ratio = Current asset / Current Liability.

24
(5) RATIOS CALCULATIONS

1. CURRENT RATIO

TABLE NO. 5.1

Year Current Assets Current Current % of Change

Liability Assets/Current
Liability
2011 3533117 21350991 0.165:1 -
2012 12237845 18756920 0.652:1 295.15
2013 75410908 62505843 1.206:1 84.96
2014 96453806 59916343 1.609:1 33.41
2015 91865435 93804095 0.979:1 -39.15

Current ratio of 2015 = Current Asset / Current Liability

= 91865435 / 93804095

= 0.979:1

GRAPH NO. 5.1

350
300
250
200
150
100
50
0
-50 1 2 3 4
-100

INTERPRETATION

Current ratio was high in the initial period was decreasing with the passing years. It
was highest in the year 2012.

25
 2. LIQUID RATIO

TABLE NO. 5.2

Year Liquid Assets Liquid Liquid % of change

Liability Assets/Liquid
Liability
2011 -9604257 21350991 -0.45:1 -

2012 -13776304 3173293 -4.34:1 864.44

2013 13828033 44267230 0.31:1 -107.14
2014 18479105 45733058 0.40:1 29.03
2015 38652488 71995488 0.54:1 35

Liquid ratio of 2015 = Liquid Assets / Liquid Liability

= 38652488 / 71995488

= 0.54:1

GRAPH NO. 5.2

1000

800

600

400

200

0
1 2 3 4
-200

INTERPRETATION

Liquidity condition of company was bad during the initial period but it was able to
recover in the next years.

26
3. GROSS PROFIT RATIO

TABLE NO. 5.3

Year Gross Profit Sales Gross % of change

Profit/Sales*100
2011 2620120 1600000 163.76% -
2012 6336199 32435558 19.53% -88.07
2013 9869185 10422400 94.69% 384.84
2014 10831290 94429203 11.47% -87.88
2015 89736010 269252380 33.33% 190.58

Gross profit ratio of 2015 = Gross Profit / Sales * 100

= 89736010 / 269252380 * 100

= 33.33%

GRAPH NO. 5.3

500

400

300

200

100

0
1 2 3 4
-100

-200

INTERPRETATION

In gross profit ratio it is interpreted that gross profit in the company is fluctuating
in every year. The finance manager must detect the cause of ailing of cross margin
and initiate action to improve the situation.

27
4. NET PROFIT RATIO

TABLE NO. 5.4

Year Net profit (PAT) Sales Net % of change

Profit/Sales*100
2011 188120 1600000 11.76% -
2012 1182831 32435558 3.65% -68.96
2013 678244 10422400 6.51% 78.35
2014 2985768 94429203 3.16% -51.45
2015 29425113 269252380 10.93% 245.88

Net profit ratio of 2015 = Net Profit / Sales * 100

= 29425113 / 269252380 * 100

= 10.93%

GRAPH NO. 5.4

300
250
200
150
100
50
0
1 2 3 4
-50
-100

INTERPRETATION

This ratio is used to measure the overall profitability, it is called index of

profitability an efficiency it is really fluctuating in the factory every year and
manager need to pay attention to make it stable or increase.

28
5. OPERATING RATIO

TABLE NO. 5.5

Year Cost Of Operating Sales Operating ratio = % of change

Goods Sold Expense Cost of Goods
Sold+Operating
Expense/Sales*100
2011 3070548 2589299 1600000 353.74% -
2012 20750730 4622215 32435558 78.23% -77.88
2013 553215 8920639 10422400 90.89% 16.18
2014 83597913 6498349 94429203 95.41% 4.97
2015 179516370 46087295 269252380 83.79% -12.17

Operating ratio of 2015 = Cost Of Goods Sold + Operating Expense / Sales * 100

= 179516370 + 46087295 / 269252380 * 100

= 83.79%

GRAPH NO. 5.5

40

20

0
1 2 3 4
-20

-40

-60

-80

-100

INTERPRETATION

Operating ratio is showing very low during the intial period and increased in the
next period and again decreased in 2015. It is fluctuating year by year.

29
6. OPERATING EXPENSE RATIO

TABLE NO. 5.6

Year Operating Sales Operating % of change

Expense Expense/Sales*100

2011 2589299 1600000 161.83% -

2012 4622215 32435558 14.25% -91.19

2013 8920639 10422400 85.59% 500.63

2014 6498349 94429203 6.88% -91.96

2015 46087295 269252380 17.12% 148.83

Operating expense ratio of 2015 = Operating Expense / Sales * 100

= 46087295 / 269252380 * 100

= 17.12%

GRAPH NO. 5.6

600

500

400

300

200

100

0
1 2 3 4
-100

-200

INTERPRETATION

Operating expense ratio must be low which will be beneficial to the company but it
increased a lot during the period between 2012 and 2013.
30
7. PROPRITORY RATIO

TABLE NO. 5.7

Year Shareholder Total Asset Proprietary % of change

Fund Ratio=Shareholder
Fund/Total
Asset*100
2011 1470951 43789023 3.36% -
2012 288120 23913968 1.20% -64.28
2013 10034962 104421345 9.61% 700.83
2014 7049195 88622542 7.95% -17.27
2015 49460075 190384146 25.98% 226.79

Proprietary ratio of 2015 = Shareholder Fund / Total Asset * 100

= 49460075 / 190384146 * 100

= 25.98 %

GRAPH NO. 5.7

800
700
600
500
400
300
200
100
0
-100 1 2 3 4
-200

INTERPRETATION

The ratio below 50% alarming for the creditors since they may have to lose heavily
in the event of factory liquidation on account of heavy losses.

31
8. RETURN ON SHAREHOLDER FUND

TABLE NO. 5.8

Year Net Profit Shareholder Net Profit % of change

(PAT) Fund (PAT)/Shareholder
Fund*100
2011 188120 288120 65.29% -
2012 1182831 1470951 80.41% 23.15
2013 678244 7049195 9.62% -88.03
2014 2985768 10034962 29.75% 209.25
2015 29425113 49460075 59.49% 99.96

Return on shareholder fund of 2015 = Net Profit (PAT) / Shareholder Fund * 100

= 29425113 / 49460075 * 100

= 54.49%

GRAPH NO. 5.8

250
200
150
100
50
0
1 2 3 4
-50
-100
-150

INTERPRETATION

It is the income that is available for distribution as dividend to share holders. Share
holders fund include equity share capital and all the surplus belonging to share
holders.

32
9. EXPENSE RATIO

TABLE NO. 5.9

Year Total Expense Sales Total % of change

Expense/Sales*100
2011 1291784 1600000 80.74% -
2012 30975083 32435558 95.49% 18.26
2013 9928523 10422400 95.26% -0.24
2014 90372798 94429203 95.70% 0.46
2015 221227788 269252380 82.16% -14.14

Expense ratio of 2015 = Total Expense / Sales * 100

= 221227788 / 26925*100

= 82.16%

GRAPH NO. 5.9

20

15

10

0
1 2 3 4
-5

-10

-15

-20

INTERPRETATION

This ratio reveals the relation of different expenses to sales. In this, lower the ratio
higher the profit. So if company wants to increase the profit company need to
lower the ratio.

33
10. RETURN ON CAPITAL EMPLOYED

TABLE NO. 5.10

Year NP (EBIT) Capital ROCE=NP/Capital % of Change

employed Employed*100
2011 308216 288120 106.97% -

2012 1713984 19470951 8.80% -91.77

2013 720810 26049195 2.77% -68.52
2014 4332941 48234962 9.58% 245.85
2015 43748715 92318600 47.38% 394.68

Return on capital employed of 2015= Net profit (EBIT) / Capital employed * 100

= 43748715 / 92318600 * 100

= 47.38%

GRAPH NO. 5.10

500

400

300

200

100

0
1 2 3 4
-100

-200

INTERPRETATION

In the initial years return on capital employed was decreasing and suddenly it
started increasing in the recent years that is in the year 2014 and was followed by
in the year 2015.

34
HUMAN RESOURCE VISION OF COMPANY

The vision of KP Group is to spread world-wide and offer quality Infrastructural

development. KP Group will continue its evolutionary path, attempt to identify
opportunities ahead of the market and position itself accordingly.

HR MISSION

Our mission is to continuously provide all types of Infrastructural Development

solutions under one roof to corporate sector worldwide. Our customer driven
approach & quality conscious product & services shall be presented with purity
and proactive solutions. Our rational commitment and smart working shall provide
effective solution to our clients in such a manner that it adds a value to their brand.

Our team mates will perform their responsibilities in a very experienced and
innovative style by which they achieve their goals possibly with zero error or
deviation. Our always radian teammates will endeavor in any condition with
sincerity and dedication. Our Vendors, Contractors and our associates shall be the
most happy and proud to be associated with us. They will certainly earn and learn
working with us.

(1) HR MANAGEMENT ACTIVITIES

The central focus for HR management must be on contributing to organizational

success. Key to enhancing organizational performance is ensuring that human
resources activities support organizational efforts focusing on productivity, service,
and quality. Efficient and effective human resource management is a challenge to
all HR professionals. Staffing, training and helping to manage people so that the all
HR professionals. Staffing, training and helping to manage people so that the
organization is likely to increase the performance.

Service

People frequently produce the products or services offered by an organization, HR

management considerations must be included when identifying services blockages
and redesigning operational processes. Involving all employees, not just managers,
in problem solving often requires changes in corporate culture, leadership styles,
35
and HR policies and practices. To accomplish these goals, HR management is
composed of several groups of interlinked activities.

K.P. ENERGY also make efforts to serve their employees in the organization. The
employees are provided with good infrastructural working environment. Company
provides the travelling services and living accommodation to their employees
working in the organization.

Recruitment

Recruitment is a process of searching for prospective employees and stimulating

them to apply for the job in the organization. Recruitment activity is performed by
the HR manager in the company.

Selection

HR manager in the company selects the candidate for the organization which is
suitable for the work to be performed in the company. The candidate is examined
after selection by the manager in the company.

Training

After selection company identifies the training need to the candidate selected. And
if the need is identified the candidate is given training of one month by the
superior.

HR Planning and Analysis

HR Planning and analysis activities have several facts. Through HR planning,

managers attempt to anticipate forces that will influence the future supply of and
demand for employees. Having adequate Human Resource Information Systems
(HRIS) to provide accurate and timely information for HR planning is crucial. The
importance of human resources in organizational competitiveness, HR analysis and
assessment of HR effectiveness must occur.

36
(2) Process Of Human Resource Planning

1. ANALYSIS OF ORGANISATIONAL PLAN.

The objectives and strategic plans of the company are analysed. Plans concerning
technology, production, marketing, finance, expansion and diversification give an
idea about the volume of future work activity. It is necessary to decide the time
horizon for which human resource plans are to be prepared. It is necessary to study
business plans because all manpower plans stem from business plans relating to
nature, level and organization of activity.

2. FORECASTING DEMAND FOR HUMAN RESOURCE

(MANPOWER FORECASTING).

On the basis of corporate and functional plans, and future activity levels, the future
needs for human resources in the organization are anticipated. The candidates
required in the company are forecasted by the HR manager and planning regarding
its recruitment are done.

3. FORECASTING SUPPLY OF HUMAN RESOURCES :

Every organization has two sources of supply of human resources Internally,

human resources can be obtained for certain post through promotions and transfers.
Human resources flow in and out of organization due to several reasons. Here the
number of candidates available in the market is analysed that whether the
candidates required in the company can be fulfilled.

4.ESTIMATING MANPOWER GAP:

At this stage the difference between the candidates required in the company and
the candidates available in the market eligible for the job is been estimated. The
gap between the demand in the company and the supply of employees in the
market is identified.

37
5. ACTION PLANNING:

Once the manpower gaps are identified, plans are prepared to bridge these gaps.
And if the demand is more than the number of candidates available any other
source is been used like promotion, transfer, or existing employees are asked for
the overtime.

6. MONITORING AND CONTROL:

Once the action plans are implemented, the human resources structure and system
is reviewed and regulated. Zero-base budgeting is used to encourage managers to
justify their action plans. Monitoring and control phase involves allocation and
utilization of human resource over time. Corrective actions should be taken at the
right time to remove the deficiencies. Manpower inventory is updated periodically
with the latest infrastructural facilities. Necessary modifications in manpower
plans should be made in the light of changing environment and needs of the
organization. In company after selection, selected employees are examined for
about one month in the company whether they are able to perform the job.

(3(a)) PROCESS OF RECRUITMENT

The process comprise of five inter-related stages which are as follows:

1) Planning

2) Strategy Development

3) Searching

4) Screening

5) Evaluation and Control.

1. RECRUITMENT PLANNING:

Planning involves the translation of likely job vacancies and information about the
nature if these jobs into set of objectives or target that specify the (1) Number and

38
(2) Type of applicants to be contacted. It is basically concerned with the types of
people to be informed about job opening. The type of people depends on the tasks
and responsibilities involved and the qualification and experience expected. These
details are available through job specification.

2. STRATEGY DEVELOPMENT:

When it is estimated that what type of recruitment and how many are required then
one has to concentrate in the method to be used. Organization must decide whether
to hire the skilled employee and invest on training and education programmes, or
they can hire skilled labour and professional. Organizations, which hire skilled and
professional shall have to pay more for these employee. An effective recruiting
strategy is determine when to look decide on the timing of events besides knowing
where and how to look for job.

3.SEARCHING

Searching for the suitable candidate is donefor the job.The candidates required in
the company are searched in the market whether the candidates available are with
the eligibility required in the company.

4.SCREENING:

Screening of application can be regarded as an integral of the recruitment process,

though many view it is first step in the selection process. The selection process will
begin after the applications have been scrutinized and short-listed. Application
received in response to advertisement is screened and only eligible applicants are
called for an interview. Here, the recruitment process extends up to screening the
applications.

5.EVALUATION AND CONTROL:

Evaluation and control is necessary as considerable costs are incurred in the

recruitment process. Evaluation regarding the recruitment is done.

(3(b)) PROCESS OF SELECTION

39
1. As per the requirements in the company advertisement is published in the
newspaper with the job description and job specification required. Job description
means duties to be performed in the company and job specification means skills
required for the job.

2. Then the candidates are directly asked for the walk in interview on some
specified dates that are mentioned.

4. Then the HR manager takes the interview of the candidates who apply for the
job in the organization. And as per the eligibility of the candidates jobs are been
offered to the candidates.

5. Than the candidates which are eligible are provided offer letter for the job. Then
the candidate is been examined in the company whether he is able to perform the
job for which he is selected. The candidates loyalty toward the organization is also
examined.

(4) TRAINING CONTENT

DEFINATION OF TRAINING:

It is a learning process that involves the acquisition of knowledge, sharpening of

skills, concept, rules, or changing of attitude and behaviors to enhance the
performance of employees.

(a) INDUCTION TRAINING:

Induction training is a type of training given as an initial preparation upon taking

up a post. Induction training is training given to new employees.

Its goal is to help new employees reach the level of performance expected from an
experience worker and to help a new employees settle down quickly into the job by

It is important to give a new employees a good impression on the first day of work.
However, the induction programmes should not end there. It is also important to
have a systematic induction programmes, spread out over several days, to cover all
the ground in the shortest effective time.

40
INDUCTION TRAINING INVOLVES:

Usually induction involves the new employee meeting and listening to different
people talk about aspects of the business. In K.P. Energy, new employee hiered in
the company is introduced with the companies policies and procedures, his
superior and the companies structure.

(b) TRAINING GIVEN TO SENIOR MANAGER:

The KP ENERGY Pvt. Ltd. Also conducts training programmes for the senior
managers to make them efficient as well as to improve their skills. The managers
have authorities and have to take the responsibilities for the entire company. So
therefore, they need some special training to face the different situation arising in
the company. For this, the managers have to go to Mumbai for 15 to 30 days where
training programs are being conducted for them so that they can acquire the
knowledge about the company as well as other important information necessary for
making company more successful.

(c) EXECUTIVE TRAINING

Executive Coaching is aimed at inspiring executive leaders to make behavioral

changes which transform themselves and the people around them thereby
increasing business results and performance. Executive training is provided to the
executive level employees in the company. It is provided once in a year by the
Suzlon company.

(5) PERFORMANCE APPRAISAL

DEFINITION :

Performance appraisal may be understood as the assessment of an individuals

performance in a systematic way."

It is the systematic evaluation of the individual with respect to his or her

performance on the job and his or her potential for development.

41
In K.P. Energy performance appraisal is done once in a year so that the employees
get motivated to perform well in the company which will benefit the company. It
increases the efficiency of the employees as they come to know about their
strengths and weakness which help them solve the problems.

(6) PROMOTION POLICY

Every organization has to specify clearly its policy regarding promotion based on
its corporate policy. The basic characteristics of a systematic promotion policy
followed in the company are:

I. In K.P. energy employees get promoted once in a year. It is done fairly and
is impartial towards any employee in the organization
II. Systematic line of promotion channel is incorporated in the company.
III. Equal opportunities for promotion is provided in all categories of jobs,
departments and regions of company.
IV. It ensure open policy in the sense that every eligible employees is
considered for promotion.
V. Top management is entrusted with the task of making a final decision.
VI. It contains encouragement, guidance and follow-up regarding promotional
opportunities, job requirements and acquiring the required skills,
knowledge etc.

(7) Transfer Policy

Organization should clearly specify their policy regarding transfers. Otherwise,

superiors may transfer their subordinates arbitrarily if they do not like them. It
causes frustration among employees. Systematic transfer policy should contain the
following items:

I. Specification of circumstances under which an employee will be transferred

in the case of company initiated transfer.
II. Specification of a superior who is authorized and responsible to initiate a
transfer.
III. Jobs from and to which transfers will be made based on the job
specification, description and classification etc.

42
 IV. The region or unit of the organization within which transfers will be
administered.
V. Reasons which will be considered for personal transfer, their order of
priority etc.
VI. Reason for mutual transfer of employees.
VII. Norms to decide priority when two or more employees request for transfer
like priority of reason, seniority.
VIII. Specification of basis for transfer like job analysis, merit and length of
service.
IX. Specification of pay, allowances, benefits etc. that are to be allowed to the
employee in the new job.
X. Other facilities to be extended to the transferred like special leave during
the period of transfer, special allowance for packaging luggage,
transportation etc.

Transfer does not take place in K.P. Energy as it is only in Surat.

(8) WAGE SALARY, PAYROLL SYSTEM OF THE

COMPANY:

INTRODUCTION:

The basic purpose of wages, salary and payroll is to establish and maintain an
equal wage and salary structure it is concern with financial aspect of need
motivation and rewards. Manager there for analyze and interpret the needs of their
employees so that rewards can be individually design to satisfy these needs.

(a) WAGES:

Wages means all remuneration paid for service rendered by an individual including
commission and bonus and the cash value of remuneration paid in a medium other
than cash.

In K.P. ENERGY when the company is satisfied with the work of employees the
company gives bonus to the employees as there rewards and motivate them to the

43
employees as there rewards and motivate them to work and increase the employees
moral.

(b) SALARY:

Salary is a fixed amount of money of compensation paid to and an employees by

an employer is reward whole works perform salary paid most frequently is a
weekly payback to performance.

In K.P. ENERGY minimum salary is given as RS. 9,200 to worker, 10,100 to

employees and 12,300 to managers in the company as a basic pay, and employees
are also given other facilities in the company. The salary increase every year by
10% and also increase as per the post of the employees increases.

(c) PAYROLL:

The sum total of compensation that a business must pay to its employees for a set
period of time and on given date. Payroll is a usually managed by the department
of a business. Small business payroll may be handled directly by the owner or an
associated.

In KP ENERGY Ltd. Every employee receives the salary of the current month in
the first week of the next month. Every employee gets a salary slip from the
company as they receives their salary so that it becomes a proof than an employee
has received his salary. The salary is paid by the company through SBI (State Bank
of India).

Moreover, the managers receive their salary from the head office of the KP
ENERGY Ltd. And the rest of the staff receive their salary through a private
workers organization called Private Employment Exchange which provides
employee for staff and housekeeping for stores like KP ENERGY Ltd.. The KP
ENERGY Ltd. Follows the Time Wage System all over.

INCENTIVE SYSTEM:

INTRODUCTION OF INCENTIVE:

44
Incentive are reward given to the employees for their good performance and
combustion to the company, employees get motivated when they receive incentives
and they try to perform better for achieving the companys goal. K.P. ENERGY
Pvt. Ltd. Gives incentive in terms of fringe benefits such as travelling facility and
housing facility at the sites where wind farm are to be set.

(9) DEFINITION OF INCENTIVES ACCORDING TO THE

COMPANY:

A cost or benefits that motivate a decision or action by consumer, business or

other participation in the company, some incentives are create by government
policies to achieve a desired card.

The KP ENERGY Pvt. Ltd. Follow this type of incentive system :

1) INDIVIDUAL INCENTIVES:

The individual incentives is given to the individual employees on the basis of the
products sold. The company has already decided the rate of incentives on every
category of products. Every category has its own incentives rate. The employees
are provided travelling facility, housing facility to the employees.

45
RAW MATERIALPURCHASE POLICY

Raw material are materials or substances used in the primary production or

manufacturing of goods. Basic material from which product is made.

Raw materials needed for the set up of wind farm to the company are as follows :

1. Nacelle

2. Tabular tower

3. Nacelle cover

4. Nose cone

5. Hub

6. Rotor blade

POLICY OF RAW MATERIAL PURCHASE IN K.P. ENERGY.

1. Receive order of wind farm set up from owner of the site.

Any industry, government, private company require the set up of wind farm
contact with the company and follow the whole procedure for placing the order.
And company receive the order.

2. Identify the needs of raw material.

As per the order company identify the need of raw material needed for the set up of
wind farm depending upon the size like 1.5MW, 2MW and etc

3. Purchase of quality raw material from verified suppliers.

As per the needs, The required materials are purchased from the verified suppliers
where quality products are available at competitive price in the market.

46
4. Check the materials received as per order.

After receiving the material from supplier, it is checked by the operation manager
whether the products received are as per the order size and quality of product
required for the set up.

5. Follow up.

The follow up is maintained is company is satisfied by the supplier in the previous

order supply. And if company is not satisfied by the previous supply, in future
company again verifies the supplier.

(2) MATERIAL HANDLING EQUIPMENTS

Material handling is defined as controlled movement of material, from receipt,

through storage and production and up to the shipment of finished product.

TYPES OF MATERIAL HANDLING EQUIPMENTS:

People or managers who design plant lay-out or material handling system should
be aware of various material handling equipments in the market.

FIGURE NO. 2.1

47
There are different methods by which these equipments can be classified.

A) Classification on the basis of form of material.

B) Classification as per path of movement.
C) Classification as per direction of movement.
D) Classification as per starting point and destination of material movements.
E) Classification of handling equipments as per degree of automation.
F) Classification as per source of power.
G) Classification as per basic mechanism.
H) Classification as per purpose.

In K.P. ENERGY material handling equipments are based on classification as per

source of power which is as under.

FIGURE NO. 2.2

Handling
Equipments

Manually Electric
Fuel powered Equipments
powered powered
equipments using gravity
equipments equipments

Online
electric Battery
power source operated

All types of handling of material require one or another source of power.

48
Examples:

TABLE NO. 2.1

Type Examples
Manually powered Hand-carts, movement in crates
Fuel powered Fuel consuming cranes, fork-lifts
Gravity as the source Down-ward liquid movement by pipelines. Gravity chutes,
of power controlled down-ward movement by elevators, conveyors
Online electric power Elevators
source
Battery operated Battery operated fork-lifts

Each type of power sources has got its typical applications. Such equipments are
either fuel consuming vehicles or battery operated vehicles. In closed areas, it is
not advisable to use fuel consuming vehicles and equipments as they generate
pollution in the form of smoke. But K.P. ENERGYS wind farm set up are in the
outer areas and the equipment used in it are heavy. So fuel powered equipments are
used for setting the blades on the towers, that is crane are used for lifting it and
attaching it up high on the towers. Where highest wind power can be generated.
More energy can be extracted with low wind classification.

(3) PROCESS OF PRODUCTION

FIGURE NO. 3.1

49
Production process for the Ratdi, Porbandar set up of the wind farm of 33.60 MW

1. PERMISSION FOR ENHANCEMENT.

Wind farm set up of 25 MW was permissed on the site at Ratdi so

permission was taken for the enhancement of capacity from 25MW to
30MW from companys wind farm at Ratdi ,Porbandar to GETCO 66KV
Visavada substation.
Received the permission for 30MW capacity through GETCO 66 KV
Visavada substation by GETCO inter-alia states to commissioned.

2. COASTAL ZONE CLEARANCE.

Then to get the coastal zone regulation clearance for windmill project at
Ratdi, Porbandar.
Consent for the establishment under section 25 of water act, 1974
pertaining to 12 windmill at Ratdi, Porbandar (NOC) by Gujarat pollution
control Board.

3. PERMISSION FOR OPERATION (SECTION 25 OF WATER )

Receive the permission to operate under section 25 of water [prevent and

control pollution] act, 1974 and authorization under rule 3(c) and 5(5) of
hazardous waste. Then Gujarat energy development agency provide the
permission for setting up 23.10 MW wind farm at Ratdi, Porbandar on 18
June, 2014. And for 10.50 MW on 21 February, 2015.

4. PERMISSION FOR ELECTRICAL INSTALLATION.

Permission by the office of chief electrical inspector, Gandhinagar for the

electrical installation at 66 KV substation at Visavada, Porbandar.
Finally GETCO gave the permission for changing of 66KV line from
Visavada substation of GETCO to 66KV companys. wind farm substation
at Ratdi and commissioning of associated equipments of GETCO.

50
5. RAW MATERIAL PURCHASE.

Raw material like Towers, Nacelle, Nacelle cover, Hub, Rotor blade,
Bricks, Cement, sand are purchased from the place where quality products
are available at low prices. Like Nacelle, Nacelle Cover, Hub are purchased
from Daman and Rotor blade, plug, etc are purchased from Bhavnagar.

FIGURE NO. 3.2

6. TRANSFER PERMISSION.

Then the whole set up is made as per the owner demand and as the actual
power commissioning take place the owner of the wind site (in case of
customers of K.P. Energy) receive transfer permission from GEDA
(Gujarat Energy Development Agency) for wheeling of electricity and the
same is not in the name of company.

(4) QUALITY CONTROL

It can be defined as process that evaluates output quality v/s standard and takes
corrective actions if there are deviations.

51
Different methods of quality control are :

1. Statistical methods.

2. Quality circles.

3. Taguchi method.

4. Zero defect approach.

5. Total quality management.

6. Kaizen.

TOTAL QUALITY MANAGEMENT

K.P. Energy pays attention more to the setting up of wind farm based on the latest
infrastructure rather than the fixed quality standards of the company. Company
covers wide areas like the training to the workers and employees, interaction with
the verified suppliers, wind farm set up location, and needs of the customer.

Establishment of an independent quality management organisation within

K.P. ENERGY helped define a strategic roadmap with which to drive the
organisation on a focused goal from quality control to quality excellence
and ultimately to quality benchmarking that induces a state of future
readiness within the organization.
Quality management strategy is a practical approach that is well adapted to
excel K.P. ENERGYS strategic business unit growth, cultural bandwidth,
quality levels of manufacturing verticals along with backward integration.
Quality management at K.P.ENERGY seeks to continually leverage upon
its size by strengthening its execution capability to deliver a customer
satisfied, reliable and robust user friendly products, with focus on rapid
reduction of life-cycle cost of the product, efficient product performance
that would ensure a sustained and profitable growth of the organisation.
Process adopted to deliver a quality product to the client at best cost. Goal
is to learn from other organisation so that quality would be better each time.
To avoid making errors by proper planning and execution with correct
review process.

52
QUALITY CONTROL PROCESS

FIGURE NO. 4.1

Plan

Quality Control
Parameters:

Process Do
Act

Projects

Resources

Check

The total quality control process consists of:

Plan It is the stage where the quality control processes are planned.
Do Use a defined parameter to develop the quality.
Check Stage to verify if the quality of the parameters are met.
Act Take corrective action if needed and repeat the work.

53
(5) MAINTAINENCE POLICY

(A) INFRASTRUCTURE

SITE INSPECTION

Although modern data system mean that a full time presence on windfarm sites is
not necessary, regular and thorough inspection of the balance of windfarm
infrastructure is a must. It includes inspection of gates, fences, access tracks,
signage, met masts and electrical infrastructure. When site facilities require repair
or maintenance, it is up to the operations manager to organize quotations for the
work, ensure its satisfactory completion and certify resulting invoices.

RESPONSE TO ALARMS

Operations managers usually need guarantee response times to alarms, 24 hours

per day, 7 days per week. Depending on the alarm, a local or remote reset may be
necessary, or technicians may be asked to attend site for a diagnosis (checking).

INSPECTION

Inspection of wind turbines is conducted on a regular basis in the company, usually

at three monthly intervals. The inspection is not just visual in nature. An abnormal
sound or unfamiliar smell can provide tell-tale signs that something is amiss
(incorrect) with the mechanical plant. The nacelle is checked carefully for oil
leakage or any other indicators that may suggest an imminent (impending)
problem.

(D) HEALTH AND SAFETY

Health and safety management is included in the scope of the operations manager.
A health and safety management plan, incorporating risk assessments, method
statements and procedures, must be created and maintained for the life of the wind
farm. This document is usually tailored to comply with the wind farm owners
health and safety policies. Health and safety auditing of contractors should be
carried out on occasion and regular inspection of on site safety equipment should
be conducted regularly.

54
(E) REPAIRS AND MAINTAINENCE

The operations manager is responsible for ensuring scheduled maintenance to be

carried out. Typically, the operations manager will engage a contractor to perform
all servicing and repairs of the turbines and it is important that a close relationship
is to be maintained with these parties. Service contractors are given adequate
notice of impending scheduled maintenance.

Non-scheduled repairs and maintenance are carried out swiftly and times of low
wind to minimize loss of production. Maximum response times for diagnosis and
repair must be stipulated in the service contract. Most trip events or breakdowns of
turbines occur in strong winds, meaning that every 1% of loss in availability could
mean a significantly higher loss in production. Prompt assessment, organization
and supervision of the work is therefore of utmost importance.

To reduce the potential for extended downtime due to lead time in obtaining
spares, the operations manager is asked to advise on and maintain an inventory of
spares on site, particularly if the windfarm is located in a remote area.

(6) STORAGE DEPARTMENT

The electricity grid is a complex system in which power supply and demand
must be equal at any given moment. Constant adjustments to the supply are
needed for predictable changes in demand, such as the daily patterns of human
activity, as well as unexpected changes from equipment overloads and storms.
Energy storage plays an important role in this balancing act and helps to create
a more flexible and reliable grid system.

When there is more supply than demand, such as during the night when low-
cost power plants continue to operate, the excess electricity generation can be
used to power storage devices. When demand is greater than supply, storage
facilities can discharge their stored energy to the grid.

55
Because some renewable energy technologies such as wind and solar have
variable outputs, storage technologies have great potential for smoothing out
the electricity supply from these sources and ensuring that the supply of
generation matches the demand.

Energy storage also becomes more important the farther you are from the
electrical grid. For example, when you turn on the lights in your home, the
power comes from the grid; but when you turn on a flashlight while camping,
you must rely on the stored energy in the batteries. Similarly, homes that are
farther away from the transmission grid are more vulnerable to disruption than
homes in large metropolitan areas. Islands and microgrids that are disconnected
from the larger electrical grid system depend on energy storage to ensure power
stability, just like you depend on the batteries in your flashlight while camping.

JUST IN TIME.

As wind farm setup order is received by the company, Company orders to the
suppliers for the required raw material for the megawatt order received for the
setup. And as the raw material which are ordered is received by the company, it is
directly used for the wind farm set up at the specific site location by the company.

56
(7) WASTAGE CONTROL

Waste is defined as surplus or residue generated out of manufacturing process. On

wider scale, waste can also include any excess consumption of resources.

TURNKEY SOLUTIONS

In K.P. ENERGY when any raw material is damage they try to repair it and if the
product is not repairable then they use the turnkey solutions.

K.P. ENERGY'S turnkey services range from complex front-end engineering

design, construction, installation and commissioning to long-term operations and
maintenance as well as the length, breadth and depth of customer requirements
across the wind energy value chain. Our key differentiator is having both strong
front-end engineering and the benefit of local experience, interface management
and construction know how.

Key benefits we offer clients range from development, to construction to

operations. Manufacturing-driven supply chain strengths and global expertise help
offer customers the best in quality services.

METHODS TO REDUCE WASTE:

There are many reasons because of which, excess waste is generated by

manufacturing system and hence it is hard to suggest few commonly applicable
guidelines to control or to reduce waste.

At operational stage K.P. ENERGY identify the needs of employees so that

the skill of employees improve as to reduce the waste because the
equipments used in making wind farm are much costly.
Company store and handle material carefully in ware house, as WIP
inventory and also as finished goods.
Company does energy and power audit so that fuel and power consumption
is under control.
Best practice is applied in waste management which help company in
reducing corporate expense.

57
 Company do not waste time in selling old equipments, non-moving
material etc.
Company keep records of latest trend in industry, so that company can
improve utility of resources.

K.P. ENERGY stores the energy at storage department when the wind farm
set up is connected with the no of towers at a time and when the one tower
is damaged or not working then the energy is to be stored in storage
department as to stop the waste of energy.

58
INTRODUCTION TO MARKETING MANAGEMENT

Marketing is a social and management process by which individuals and groups

obtain what they need through creating and exchanging products and value with
others.

Marketing is the activity, set of institutions, and process for creating,

communicating, delivering, and exchanging offering that have value for customers,
clients, partners, and society at large.

It is important to realize that the customer can be an individual user, a company, or

several people who contribute to the purchasing decision. The product can be a
hard good, a service, or even an idea anything that would provide some value to
the person who provides an exchange. An exchange is most often thought of as
money, but could also be a donation of time or effort, or even a specific action. A
producer is often a company, but could be an individual or non-profit organisation.

SEGMENTATION, TARGETING AND POSITIONING

SEGMENTATION

Market segmentation means dividing a market into distinct groups of bias with
similar need on the bases of place, income, gender, age, interest and aptitude,
prejudice, purchasing habits, etc.

LEVELS OF MARKET SEGMENTATION

(1) Segment marketing

A segment of a market is made up of a large identifiable group of customers within

a market. That group is targeted for marketing efforts. The segment marketing is
based on the recognition that buyers differs in their needs, purchasing power,
buying attitudes, geographical location and buying habits. The customers almost
possessing similar traits are identified and isolated from others into a group which
is known as a segment.

This level of market segment does not happen in the K.P. Energy.

59
(2) Niche marketing

Market segments are large identifiable groups of customers within the total
markets. A niche is typically a small group or market whose needs are not being
properly satisfied. Such a small group known as niche offers business opportunity
to the marketer. The marketers identify niches by dividing a segment into sub
segments on the basis of distinctive traits.

K.P. Energy does not perform this level of segmentation in the company.

(3) Local marketing

Local marketing is smaller than the niche marketing. Target marketing is

increasingly assuming the characteristics of local marketing. Its marketing
programme is tailor made to satisfy the needs and wants of local customers.
Localizing of marketing is the best remedy to satisfy the needs of the local
customer groups.

(4) Individual marketing

Individual marketing is also known as segments one or customized marketing or

one to one marketing. The marketing segment consists of one individual or one
organization. It is known as customized marketing because product is made as per
requirements of the customer.

(2) TARGETING

Out of identified and selected market segments the company has to decide how
many and which ones to target for marketing efforts.

(A) Evaluating the Market Segments

Company has to evaluate different market segments. Evaluation is made from two
angles. First is overall attractiveness of the segment in terms of size, growth
potential, profitability, economies of scale, low risk etc. Second is its compatibility
with business business objectives and available resources.

60
(B) Selecting the Market Segments

After evaluating different segments the company has to decide which and how
many segments to enter in four satisfying the needs of the customers and achieving
business objectives.

(1) Single Segment

A single segment is selected as target market and all the marketing activities are
concentrated in that single segment. The company concentrates its marketing
efforts in this single segment. The company gets strong knowledge of the
segments needs and achieves a strong position in the targeted segment.

K.P. Energy does not perform this segmentation function.

(2) Selective specialization

The business enterprise selects a number of segments appropriate to the given

objectives and resources and are attractive too. There may be little or no synergy
(coordination) among the segments but each segment is offering good potential.
This multi segment strategy has the advantage of risk diversification.

In K.P. Energy this function is not performed.

(3) Product specialization

The company specialization in marketing one product and selling it in several

segments. The company can build strong reputation in a certain product area. But
the risk is that the product may become obsolete by the advent of new technology.

In K.P. Energy only wind farm set up and its maintainence is done. And power is
supplied to the several segments like households, government offices, and private
sector offices that demand the wind farm set up.

(4) Market Specialization

This is the segment selecting pattern in which the company concentrates on

satisfying several needs of a particular customer group. This pattern enables the
company to earn strong reputation of specializing in serving the customer group.
Customer budget cuts and their influence on demand is the down side risk.

61
In K.P. Energy this type of function is not performed.

(5) Full Market Coverage

In this pattern the company offers all the products to all the customer groups to
satisfy their needs. Only large size company can adopt this strategy of market
targeting.

Large size companies can cover entire market through undifferentiated marketing
or differentiated marketing.

This function is not performed by K.P. Energy as company is middle size

company.

(C) Segment by segment invasion plan

Company adopt strategic approach for entering into super segment. A super
segment is a set of segments sharing some similarity. Company desiring to enter
super segment it is wise to enter one segment at a time and hide its grand plan.
According to its hidden plan the company will gradually enter into super segment
as per segment by segment invasion plan. After capturing one segment it invades
second segment and after capturing the second segment it invades the third
segment.

POSITIONING

Positioning is the act of designing the companys offering and image so that they
occupy a meaningful and distinct competitive position in the target customers
minds.

The product is to be positioned in the minds of customers. For that two things are
essential. One is the designing of the product and the other is creating an image.
The product should be designed in such a way that it looks distinct and
distinguished from that of competitors product. It means product should be
differentiated from others on the grounds of quality, features, services, price,
channel etc.

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4 PS OF MARKETING :

(A) PRODUCT

A product is seen as an item that satisfies what a consumer needs or wants. It is a

tangible good or an intangible services. Intangible products are service based like
tourism industry, hotel industry and the financial industry. Tangible products are
those that have a physical existence. Typical examples of tangible products are the
motorcar, the mobile phone.

INTRODUCTION

K.P. Energy does the set up of the wind farm and maintains it. Company assembles
the raw materials as per the requirements, sets the wind farm and is maintained by
the company itself. The electricity that is produced is been supplied to the GETCO
(Gujarat Energy Transmission Corporation) and then GETCO supply it to the
households, industries, or any other company that demand the set up, etc.

63
PRODUCT MIX

A product mix is the set of all products offered by a firm. Particular seller offers
for sale A product mix consist of various product lines. It is the full list of
products a company produces to market.

FEATURES OF PRODUCT MIX :

(1) Product width

The width of product mix includes all the product lines that a company sells. The
product width of company is 1, because company only sets up the wind farm.

(2) Product length

The length of companys product mix pertains to the total number of product the
company sells. The product length of company is also 1.

(3) Product depth

Companys product mix depth pertains to the total number of variations for each
product. Product variation can include flavor, fragnance, size and any other salient
attribute. Company provides the variations in terms of size like 1megawatt,
1.5megawatt, 2megawatt, etc

(4) Product consistency

Consistency in product mix refers to the relationship between product lines,

including use, production and distribution.

These four dimensions of the product mix provide companys product strategy.

PRODUCT LIFE CYCLE

(1) Introduction stage

At this stage product is new, sales are low, and the cost per product is relatively
high. And the profit is neutral or negative. The marketing objective for the
marketer at this stage is to create product awareness and trial.

64
(2) Growth stage

The growth stage is a period of rapid revenue growth. Sales increase as more
customers become aware of the product and its benefits and additional market
segments are targeted. Once the product has been proven a success and customers
begin asking for it, further sales will increase.

The product of K.P. Energy is at the growth stage.

Product : The wind farm set up is done as per the new and varied infrastructural
facilities available recently in the market.

Price : As per the demand of the customer the price of the product varies. If the
customer demand the wind farm set up of high megawatt then the prices for its
product increases.

Distribution : The distribution in K.P. Energy is as per the requirements, it does the
work of power supply to the customer needed as per their demand.

Promotion : This function is not performed by the company.

(3) Maturity stage

The maturity stage is the most profitable. While sales continue to increase into this
stage, They do so at the slower pace. Because brand awareness is strong,
advertising expenditures will be reduce. Competition may result in decrease market
segment and/ or price. The competing products may be very similar at this point,
increasing the difficulty of differentiating the products.

K.P. Energy has not reached maturity stage, as company is still at the growth stage
of the product life cycle.

(4) Decline stage

At this stage sales begin to decline as the market becomes saturated, the product
becomes technologically obsolete, or customer tastes change if the product has
developed brand loyalty, the profitability may be maintained longer. Unique costs
may increase with the decline production volumes and eventually no more profit
can be made.

65
As K.P. Energy has not reached the maturity stage, the product life cycle has not
started to decline.

PACKAGING

Packaging is the science, art, and technology of enclosing or protecting products

for distribution, storage, sales, and use.

On the other hand, packaging is the subdivision of the packing functions of

marketing. Packaging has been defined as an activity, which is concerned with
protection, economy, convening and promotional consideration.

LABELING

Label is a part of product, which carries verbal information about the product or
the seller. It may be the part of package, or it may be a tag attached directly to the
product.

As company does the work of power supply to the customers it does not perform
the packaging and labeling function in the company.

PRICE

INTRODUCTION

Price is the exchange values for the product or service. This exchange value may
be in terms of money (in recent times) or in terms of product or service (in barter
system).

The price is the amount a customer pays for the product. The price is very
important as it determines the companys profit and hence, survival. Adjusting the
price has a profound impact on the marketing strategy, and depending on the price
elasticity of the product, often it will affect the demand and sales as well. The
marketer has to decide the price that complements the other elements of the
marketing mix.

66
METHODS OF PRICING

PRICING
METHODS

COST DEMAND COMPETI

TION OTHER
BASED BASED PRICING
PRICING PRICING BASED
PRICING METHOD

COST TRANSFE- GOING TARGET

MARKUP R VALUE
PLUS RATE RETURN
PRICING PRICING PRICING
PRICING PRICING PRICING

PRICING METHOD IN K.P. ENERGY

K.P. Energy follows the cost based pricing method in the company. Prices are
finalized by adding some service cost to the cost of materials purchased for the set
up of the wind farm.

In K.P. Energy pricing is done as per the costs incurred in the setting up of the
wind farm and its maintenance.

The pricing of wind farm highly depend on the market price of the irons, machines
and other equipments. The materials required for the wind farm set up are tower,
blade, cement, sand, stone and etc. The company purchase the blades from
Bhavnagar, tower is purchased from Suzlon and etc.

For the wind farm set up of 2.1 megawatt cost around 14crore to 17crore rupees.
Diversification are as given below :

7,00,00,000 rupees for purchase of tower.

1,50,00,000 rupees for purchase of the blades. (1.2 lakhs per blade)

67
1,85,00,000 rupees for purchase of hub.

And remaining are for the other services provided by the company.

PLACE

INTRODUCTION

Use of intermediaries like wholesalers, retailers, agent, etc., between

manufacturers and consumers for the purpose of facilitating availability of goods
and services is known as distribution channel.

LEVELS OF CHANNELS OF DISTRIBUTION

Manufacturer may reach out directly to the customers i.e. without using
distribution channel or by using one or more distribution channel member. The
type of channel used depends on the customer requirements such as level of
perceived risk about the product, the customers knowledge about the product, his
delivery and service requirements etc.

Following are the level of channels of distribution:

(1) 0 Level Channel

0 level channel means there is no intermediary between the company and the
consumer. It is also called as direct marketing. Direct marketing can be done with
the help of personal selling, direct mail, telephone selling and internet.

In K.P.ENERGY 0 level of channel of distribution is performed. Where there is

direct relation between the company and government and no third party is
involved. K.P. ENERGY does the set up of wind farm and then power is directly
supplied to government.

(2) 1 Level Channel

1 level structure is one in which we have one intermediary acting as a link between
the manufacturer and the consumer. Here the retailers buy goods directly from the
manufacturer and supply it to the consumers.

68
In K.P.ENERGY 1 level of channel of distribution is performed. Here government
is the link between company and customers that demand the set up. As the
customer order the set up of wind farm to the company, the company sets the wind
farm and power is supplied to the government (GETCO) and government supply
the power to the customer that orders the set up of wind farm. As company is
restricted by the government to directly supply the power to customers who need
the set up of wind farm.

(3) 2 Level Channel

2 level structure includes wholesalers and retailers. For small retailers with limited
order quantities, the use of wholesalers makes economic sense. Wholesalers buy in
bulk from producers and sell smaller quantities to retailer. But large retailers in
some market have the power to buy directly from manufacturer and thus cut out
the wholesalers.

In K.P. ENERGY 2 level of channel of distribution is not performed.

(4) 3 Level Channel

Companies use these channels when they enter foreign markets. They delegates the
task of selling their products to an agent who does not take title to the goods. The
agent contacts wholesalers and receives commission on sales. This channel is also
preferred by new companies.

In K.P. ENERGY 3 level of channel of distribution is not performed.

PROMOTION (PROMOTION MIX)

Promotion mix is the combination of one or more of the communication tools

used to inform, persuade, or remind prospective buyers.

Promotion includes all of the tools available to the marketer for marketing
communication. There is no absolute agreement on the specific content of a
marketing communications mix, there are many promotions elements that are often
included such as sales, advertising, sales promotion, public relations, direct
marketing, online communications and personal selling.

69
COMPONENTS OF PROMOTION MIX

Following are the components of promotion mix:

1) Advertising
2) Personal Selling
3) Publicity
4) Sales Promotion
5) Corporate Image
6) Exhibitions
7) Direct Marketing

Promotional activity is not carried out in KP Energy as it performs the work of

power supply

SALES PROCEDURE

1. The applicant shall furnish the details as per the applicant format along with
documents and application fee of Rs. 10,000/- per MW. The DPR processing fee of
Rs 1.00 lakh per MW will be collected on submission of DPR.

2.Companys details like MOA/AOA is to be submitted.

3.The networth of the company shall be 30% of the total projects cost. Networth
certificate of the company in the prescribed format approved by the Government
duly certified by the Chartered Accountant along with audited financial statements
of the company for three years.

4.The self identified area shall be marked on 1:50000 scale topo map.

5.The details of the lands for the proposed wind farm like private/revenue/forest
along with tentative survey Nos, RTCs and extent of land shall be furnished.

6. The Pre feasibility Report containing the details of the project and also the plan
of action and project implementation schedule for development of the project are
required.

7. The sale of energy to ESCOMs will be through either PPA or through wheeling
And Banking for 3rd party sale.

70
8. An affidavit by the notary is to be submitted on a non judiciary stamp paper of
value Rs.100/-.

9. An authorization letter for signing authority to be furnished, if required.

10. After the scrutiny of application, the proposal will be sent to GOK for placing
it before the Allotment Committee headed by the principal secretary, Energy
Department, GOK.

COMPETITIVE ANALYSIS

1. Suzlon energy limited.

2. Inox wind limited.

3. Regen powertech private limited.

1. SUZLON ENERGY LIMITED AND K.P. ENERGY

SUZLON aim is to maintain a satisfied customer base, qualitative supplier base

and highly motivated work force by delivering quality products and services. In
order to achieve our mission, They commit themselves to :

1. Institutionalize customer focus with timely delivery, quality and product

performance that satisfies their customers need and expectations thereby
confidence and long term relationships with the customers.

2. Establish qualitative supplier base having strong focus on quality systems,

products and continual improvement.

3. Pursue total quality in every aspect of their organization creating an environment

for team work of a highly trained and motivated work force who are empowered to
reach their fullest potential.

Aim of K.P. ENERGY is to continuously provide all type of Infrastructural

Development solutions under one roof to the corporate sectors world wide.
Customers driven approach and quality conscious products and services shall be
presented with Purity and Protective solutions. Rational commitment and smart

71
working shall provide effective solutions to clients in such a manner that it adds a
value to their brand.

2. INOX WIND LIMITED AND K.P. ENERGY.

INOX WIND is a fully integrated player in the wind energy market with state-of-
the-art manufacturing plants near Ahmedabad (Gujarat) for blades and tubular
towers and at Una (Himachal Pradesh) for hubs and nacelles.

Inox wind manufactures key components that ensure high quality, most advanced
technology, reliability and cost competitiveness. Inox WTGs are designed for low
wind speed sites of India, and are generating around 6% - 18% more generation
viz-a-viz other WTGs models available across the nation.

K.P. ENERGY Limited is very fast growing Company of the group. It concentrates
both on solar and wind energy projects and previously worked at Saurastra and
Kutch in northern region of Gujarat with leading corporate companies in power
sector such as LANCO, WIPRO and INDU projects. KP Energy is also developing
wind farm of 25MW in Bhavnagar and 150MW in Porbandar.

3. REGEN POWERTECH PRIVATE LIMITED AND K.P.

ENERGY.

List of wind farm set up sites by REGEN POWER TECH PRIVATE LIMITED
are as follows.

I. Vagarai site at Tamil Nadu for 4.5 MW

II. Ichhapur site at Maharashtra for 31.5 MW
III. Hatuniya site at Madhya Pradesh for 30 MW

List of wind farm set up sites by K.P. ENERGY Pvt. Ltd. ate as follows.

I. Ratdi site at Porbander for 30 MW

II. Mahua site at Bhavnagar for 150 MW
III. Matalpur site at Bhavnagar for 30 MW

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BIBLIOGRAPHY

(1) WEBSITES

Googleweblight.com/?lite_url=http://www.kpgroup.co/Products.aspx&ei=5rHyl02
&Ic=enIN&s=1&m=267&host=www.google.co.in&ts=1466322800&sig=AKOV
D64e7JrT16OQc2xlEqewuuDuf2X46w.

(2) REFERENCE BOOK

1. Gami N.D., 2005,Financial management, 5thEdition,Surat,Popular Publication,

Page no. 29, 31, 34, 42, 134.

2. Gupta C.B.,Human Resource Management,Latest edition, page no.

35,36,49,55.

3. GamiN.D., Marketing Management, Latest edition, page no. 12, 13, 39, 40.

4. Ashawathapa. k., 2010, Production and operation Management, Latest edition,

New Delhi, Geetanjali press, Page no. 131, 187, 242.

73
PROFIT AND LOSS ACCOUNT

PARTICULAR 2011 2012 2013 2014 2015

1) Revenue from 1600000 32435558 10422400 94429203 269252380
operations
2) Other income 253509 226933 276536
3) Total revenue 1600000 32689067 10649333 94705739 269252380
4) EXPENSES
Cost of material 3070548 20750730 553215 83597913 179516370
consumed
Employee benefit 3261749 5602138 3396414 3016895 10674325
expense
Financial cost 373154 2882894 2882143 2537856 3794409
Depreciation 15161 174465 306581 177578 1664658
expense
Other expenses 712268 1564856 2790171 1042555 6275339
Total expenses 1291784 30975083 9928523 90372798 221227788
5) Profit before 308216 1713984 720810 4332941 43648715
exception item and
tax
6) Exceptional 227736
items
7) Profit before 308216 1713984 948546 4332941 43648715
extraordinary
items and tax
8) Profit before tax 308216 1713984 948546 4332941 43648715
9)Tax expense
(a) Current tax 95239 444858 313950 1310208 12000675
(b) Deferred tax 24857 86295 43648 36966 2180618
10) Profit/Loss 1182831 1182831 678244 2985768 29425113
from period of
continuoperat
11) Profit for the 1152831 1182831 678244 2985768 29425113

74
period
12) Earning per
equity share
(a) Basic 31 171 1.9 8.67
(b) Diluted 8.67

BALANCE SHEET

PARTICULAR 2011 2012 2013 2014 2015

1. EQUITY AND
LIABILITIES
(I) Shareholders funds
a. Share Capital 100000 100000 5000000 5000000 10000000
b. Reserve and 188120 1370951 2049195 5034962 39460075
Surplus
(1) Sh. App. Money 2250000 5450000
pending
allotment
(2) Non-current
Liabilities

a. Long-term 18000000 19000000 35200000 42858525

Borrowings
b. Deferred Tax 24857 111152 67504 104470 2285088
Liabilities (Net)
c. Other Long-term 1976363
Liabilities
(3) Current
Liabilities
a. Short-term 15583627 18238613 14183286 21808607

75
 Borrowing
b. Trade Payables 168638 2009140 17168381 21459054 43740353
c. Other Current 21182353 1164153 27098849 23439573 28255135
Liabilities
Total 23913968 43789023 88622542 104421345 190384146
1. ASSETS
(I) Non- current Assets
a. Fixed assets
(i) Tangible assets 2609919 4550846 4223584 8791969 98508711
a. Current 10000 10000 10000 10000 10000
Investments
b. Inventories 13137374 26014149 64582875 77974701 53212947
c. Trade 1338400 294595 1123173 18941642
Receivables
d. Cash and Cash 3265318 3580332 8978050 1275174 9070887
Equipments
e. Short-term Loans 3552957 9339101 9704860 16369501 10446759
and Advances
f. Other current 193200
assets
Total 23913968 43789023 88622542 104421345 190384146

76