1.

EXECUTIVE SUMMARY
This report consists of detail about INVENTORY MANAGEMENT under taken at Karnataka Soaps & Detergent Limited .This is summarized as below-: If we look back into the history of soaps & detergent, mankind knew about soaps nearly 2000 year back i.e. In 70 A.D. when Mr. Elder the accidently discover soap. When roasted meat over flowed on the glow in ashes. This lump like product was soap & had forming & cleansing character. In London. The world consumption of soaps in 1884A.D. was said to be 2 lakh tones p.a Soap manufacturing was started in North America. Some American companies with well known names were started 200 years ago. During middle age soap was made at various places in Italy, France, England & other countries. France became famous & many small factories were established there. In India the first soap industry was established by North West Soap Company in 1897 at Meerat following the swadeshi movement... The origin of sandalwood and its oil I Karnataka. Which is used in making of Mysore sandal soaps, is well known as Fragment Ambassador of India & Sandalwood oil is in fact known as Liquid Gold By the inspiration of His Highness Maharaja of Mysore Lata Jayachandrajendra Wodeyar, the trading of sandal wood logs started which was exported to Europe and New destinations, but with commencement of First Crisis on the business of sandalwood This situation gave rise to start of a company, which produce i.e., of sandalwood oil. His highness Maharaja of Mysore created this situation as an opportunity by sowing the seed of the Government sandalwood oil Factory, Which is the present KS&DL

KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of excellent for over eight decades, using only the best East India grade Sandalwood oil & Sandalwood soaps in

the world. The products at KS&DL are the Soaps, Detergents, Agarbathies and sandalwood oil .It also manufactures sandal wood oil of different qualities The various ranges of products from house of Mysore Sandal Soaps are Mysore Sandal Soap, Mysore Sandal Special Soap, Mysore Sandal Baby Soap, Three-in-one pack -6Tabs, Mysore Sandal Gold sixes 6 Tabs, Mysore Sandal Soap Bath Tablet Trio 3nos, Mysore Sandal Classic Soap, Jasmine Bath soap KS&DL also manufactures high qualities detergent applying the latest spray during technology with well balanced formulation of active matters & other builders; they provide the ultimate washing powder. It also manufactures agarbathis of various range and fragrance. It also manufactures sandal wood oil of different qualities

2.1Industry profile
INTRODUCTION TO SOAP INDUSTRY:Soap is one of the commodities which have become an indispensable part of the life Of modern fantasy world. Since it is non durable consumer goods, there is a large market for it. The Whole soap industry is experiencing changes due to innumerable reasons such as government Relations environment, environment, toxicological allergy problems increase in cost of raw material etc. The changing technology and even existing desire by the individuals and the Organization to produce a better product at a more economical rate has also acted as catalyst for the dynamic process of change. More and more soap manufactures are trying to capture a commanding market share by introducing new products and maintaining acceptable products. The soap industry in India faces a cut throat competition while multinational companies dominate the market. Following Swadeshi movement in 1905, few factories were set up and they were 1. Mysore Government Soap Factory at Bangalore. 2. Godrej Soaps at Bombay.

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

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

THE INDIAN SOAP INDUSTRY SCENARIO:The Indian soap industry has been dominated by handful of companies such as 1. 2. 3. 4. Hindustan Levers Limited. Tata Oil Mills ( Taken over by HLL ) Godrej Soaps Private Limited. Recent entrants include Colgate Palmolive Ltd., Proctor & Gamble Ltd., Nirma Soap Works.,

- Wipro Ltd. The Indian Soaps industry continued to flourish very well until 1967 68, but began to stagnate. Soon it started to recover and experienced a short upswing in 1974. This increase in demand can be attributed to:-

1. 2. 3.

Growth of population. Income and consumption increase. Increase in urbanization.

4.

Growth in degree of personal hygience.

Soap manufacturers are classified as, Organized and unorganized sector. KSDL is under organized Sector.

PRESENT STATUS:MARKET SCENARIO

India is the ideal market for cleaning products. Hindustan liver, which towers over the cleaning business, sells in all over the cleaning business but the tiniest of Indian settlement. The 7.4lakhs tons per annum soap market in India in crawling along at 6% The hope lies in raising Rupee worth, the potential for which is high because the Indian soap market is pseudo in nature & it is amazingly complex being segmented not only on the basis of price benefits, but even a range of emotions within that outlining framework.

HISTORY OF THE SOAP:In India the first soap industry was established by North West soap company in1897 at Meerat following the swadeshi movement. From 1905 onwards few more factories were setup. They are,

Mysore soap factory at Bangalore Godrej soap at Bombay Bengal chemicals Tata oil mills 1930 lever brothers company

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

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

The Maharaja of Mysore & Divan Sir. M. Visveshwarya established the Government Soap factory during the year 1918. The factory was started as a very small unit near K.R.Circle, Bangalore with the capacity of 100tons P.A. In November 1918 the Mysore sandal soap was put into the market after sincere effort and experiments were undertaken to evolve a soap perfume blend using sandalwood oil as the main base to manufacture toilet soap. The factory shifted its operation to Rajajinagar industrial area, Bangalore in July 1957, where the present plant is located. This factory started at a moderate scale in year 1916. The first product was washing soap in addition to the toilet soap in the year 1918. The toilet soap of the company was made up of sandal wood oil.

In 1950 Government decided to expand the factory in two stages. The first stage of expansion was done to increase the output to 700 tons per year and was completed in the year 1952 in the old premises. The next stage of expansion was implemented in 1954 to meet growing demand for Mysore sandal soap and for this purpose Government of India sanctioned license to manufacture

1500 tons of Soaps and 75 tons of glycerine per year. The expansion project worth of Rs.21 lakhs includes the shifting of the factory to a newly laid industrial suburban of Bangalore.

2.2 COMPANY PROFILE :Karnataka soaps & Detergents Limited, a successor to the government soap factory, which is one of the premier factories among the Indian soap industries. After World War 1, there was a slump in the sandal wood export to the west. It dropped a blanket of gloom over business & trading in India. The Maharaja of Mysore turned this threat in to an opportunity, by sowing the budding seeds of KS & DL on the out skirts of Koti forest, near Bangalore in 1918. The project took shape with the engineering skill and expertise of a top-level team with the inspection of the Diwan of Mysore Late Sir. M. Visvesvaraya & with the service of scientists late Sir S.G. Shastry, Professor Watson & Dr. Sub rough. The factory was started a very small unit near K.R.Circle, Bangalore with the capacity of 100 tons p.a in 1918. Then, the factory shifted its operations to Rajajinagar industrial area, Bangalore in July 1957. The plant occupies an area of 42 acres (covering soap, detergent & fatty acid divisions) on the Bangalore-Pune Highway easily accessible by transport services and communication. In November 1918, the Mysore Sandal Soap was put in to the market after sincere effort & experiments were undertaken to evolve a soap perfume blend using sandalwood oil as the main base to manufacture toilet soap. On Oct 1st 1980, the Government Soap Factory was renamed as KARNATAKA SOAPS AND DETERGENTS LIMITED. The company was registered as a Public Limited company. Today the company produces varieties of products in toilet Soaps, Detergents, Agarbathis and Talcum powder. KS&DL has been built up with rich tradition for the quality of its products. Mysore Sandal Soap is the No: 1 anywhere in the world. The Karnataka state is the original home of the Sandal oil, which uses Original perfume sandalwood in the manufacturing of Mysore Sandal Soaps.

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

VISION STATEMENT: "KARNATAKA SOAPS & DETERGENTS LIMITED WILL LEVERAGE LATEST SOAP MANUFACTURING TECHNOLOGY AND INFORMATION TECHNOLOGY BY IMBIBING PROFESSIONAL MANAGEMENT TECHNIQUES TO IMPROVE ITS FUNCTIONAL ACTIVITIES, TRANSPARENCY, BUSINESS AND TO TRANSFORM ITSELF INTO A COMPETITOR IN THE FMCG MARKET IN INDIA AND ALSO TO SPREAD ITS FRAGRANCE IN THE FMCG GLOBAL MARKET".

MISSION STATEMENT:Karnataka Soaps & Detergents Limited shall strive to achieve:-

Rs.235.00 crores sales turnover during the year 2010-11. Minimum 10% of savings of cost in various activities during the year 2010-11.

COMPETITORS OF KS&DL PRODUCTS AND SERVICES:KS&DL is facing cut-throat competition in national and international market. Some of its main competitors are: M/S. Hindustan Uni Lever Ltd., M/S. Godrej Soaps Private Ltd., M/S. Proctor & Gamble., M/S. Wipro.

M/S. Nirma Soaps Private Ltd., M/S. Jyothi Laboratories.

COMPETITORS INFORMATION AND THEIR MARKET SHARE IN SOAP INDUSTRIES NO.

1. 2. 3. 4. 5.

PARTICULARS
HLL [Hindustan Lever Ltd.] KS&DL Procter & Gamble Godrej soaps Others

PERCENTAGES
70% 11% 10% 4% 5%

TRADEMARKS OF KS&DL:The SHARABHA

The carving on the cover is the sharabha, the trademark of KS&DL. The sharabha is a mythological creation from the puranas which has a body of a lion and head of elephant, which embodies the combined virtues of wisdom and strength. It is adopted as an official emblem of KS&DL to symbolize the philosophy of the company.The sharabha thus symbolized a power that removes imperfections and impurities.

AREA OF OPERATION:

GLOBAL FAVOURITES FOR THEIR NATURAL GOODNESS KS&DL has a long tradition of maintaining the highest quality standards, right from the selection of raw materials to processing and packaging of the end product. The reason why its products are much in demand globally & are exported regularly to UAE, Bahrain, /Saudi Arabia, Kuwait, Qatar, South East Asian countries as well as North America & South America. The sandalwood oil, of course, is much sought after by the leading perfume houses of the world. All the toilet soaps of KS&DL are made from oils & fats of vegetable origin & totally free from animal fat.

OWNERSHIP PATTERN: Wholly owned by Government of Karnataka. ACHIEVEMENTS / AWARD:

1. Government of Karnataka, Dept of Industries and commerce State Export Promotion Advisory Board. EXPORT AWARD 1974-75 2. Detergent Plant M/s Chemical Bombay have given 1st price for the year 3. Geographical Indication GI-2005 4. ISO 9001-2000 in the year 1999 5. ISO 14001-2004 in the year 2000 1980-81

MILE STONES OF THE COMPANY:

1981 - a. Production capacity was increased to 6000 tons. b. Rs.5 crore Fatty acid plant was installed with technical collaboration from Europe. 1984 - Manufacturing of premium quality of Agarbathies at Mysore 1985 division.

Production capacity was raised to 26,000 M.tons Per Annum. A large variety of toilet fragrances introduced to meet the varieties & tastes

soaps at attractive shapes, colors and of consumers.

1992 - The Board for Industrial & Financial Reconstruction (BIFR), December For rehabilitation 1996 - The BIFR approved the Rehabilitation scheme in September. 1999 - ISO 14001 Certificate pertaining to Environmental

New

Delhi

in

Management System.

2000

- In May, the BIFR, New Delhi Declared the Company to be

out of the purview. in May BIFR,

2003 - The entire carried forward loss of Rs.98 crores wiped out and

declared the company to be out of its Purview. The company is making profit continuously; it is only State Public Sector unit that has come out of BIFR. 2004 - The company launched Herbal Care Soap. And The ISO upgraded to ISO-9001-2004, Quality Systems. 2008-Company has introduced Hand wash liquids under the trade name of Herbal Hand wash and Rose Hand wash liquids. Company has also introduced liquid Detergent under the trade name of KLEENOL liquid with different variants for Floor wash, Dish wash and 9002 was

Automobile wash. 2009-Company has established In-House state of the Art manufacturing facilities for manufacture and filling of Mysore Sandal Talcum powder and Mysore Sandal Baby powder. Company has reintroduced the Talcum powder variants with new outlook of containers. 2010-The ISO certification was upgraded to ISO 9001:2008.

ISO 9002 QUALITY POLICY:

KS&DL commits to customer delight through Total Quality Management & continues improvement by involvement of all its employees.

ISO 14001 ENVIRONMENTAL POLICIES OF KS&DL:

Is committed to preserve the natural environment in the production of its quality products to the satisfaction of its customer. Will comply with all statutory & regulatory requirements pertaining to environment stipulated by both state & central authorities. Would invite & implement action to reduce all impacts that are likely to be a source of concern to the environment. Would strive & set an example in protection & promotion of an eco-friendly environment. Is committed to prevent & minimize risks to the environment & conserve natural resources by waging a war against wastes. Will motivate every employee of the company in preserving the environment by providing appropriate training. Will make available a copy of environment policy, under environment Management system on a written request to its manager (Environment & Policy)

AN ISO-9002 COMPANY
KS & DL with a tradition of excellence of over eight decades is committed to customer delight, through total quality management and continuous improvement through the involvement of all employees. KS&DL has got ISO 9002 certificate. To improve the quality management system and to facilitate TQM in the process of soap and detergent, the management took decision to obtain ISO-9002 by end of March 1999. Accordingly action plan was drawn and a committee was set up for the purpose during October 1998 with a mission statement. The company gives initial training including conducting employees awareness programme, document quality manual and quality system procurement. In this direction company obtained the guidance from Consultancies, Bangalore and Bureau of Indian Standards, Bangalore. Accordingly, company standards registered for ISO 9002 by the end of March to the Bureau of Indian Standards. Obtained the certificate by the end of March 1999 itself.

ISO-14001
The company is located in the heart of the Bangalore city. The management of the company took a decision to get the ISO-14001 and become model to other public sector for the techniques used and also to other Government units to spread the message of maintenance of environment. ISO-14001 and ISO-9001 will facilitate to improve the corporate brands in the global market and it will help the company to improve the profits, year after Year on long-term basis. The environment management system adopted in the company through this motive as follows: I. II. III. Conservation of energy Conservation of Surrounding Conservation of resources.

Work flow model of ks&dl Wwwwwwml;djcjdsjl;

PRODUCT PROFILE:KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best East Indian grade Sandalwood oil & Sandalwood soaps in the world. The products produced at KS&DL are the Soaps ,Detergents, Agarbathies and Sandalwood oil.

NEW PRODUCT LAUNCHED

1.Wave Turmeric Soap.

2. Wave Hand Wash Liquid Soap. 3. Herbal Care Liquid Soap. 4. Agarbathies Mysore Sandal 3 in 1.

PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP NAME OF THE PRODUCT
Mysore Sandal Classic Soap Mysore Sandal Gold Soap Mysore Sandal Baby Soap

UNITS OF GRAMS
75 75, 125 75

Mysore Special Sandal Soap

75

Mysore Rose Soap

100

100, 125 Mysore Sandal Herbal Care Soap

Mysore Jasmine Soap

100

Wave Soap Mysore lavender Soap Mysore Sandal bath tablet

100 150 150 150

Mysore Sandal classic bath tablet 150 Mysore Jasmine bath tablet Mysore Special Sandal tablet Mysore Sandal rose tablet 150

150

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

NAME OF THE PRODUCT

Mysore detergent powder Mysore detergent powder Mysore detergent Cake

UNITS OF GRAMS
1000 500 125

Mysore detergent cake

250

AGARBATHIS NAME OF THE PRODUCT

Mysore Sandal Premium Mysore Sandal Regular Mysore Rose Nagachampa Suprabhatha Mysore Jasmine Parijata Sir M.V.100 Bodhisattva Venkateshwara Durga Ayyappa Alif Laila Meditation

FUTURE GROWTH AND PROSPECTUS:

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

3.SWOT ANALYSIS OF KS & DL:STRENGTHS

The company has modern manufacturing facility with maximum capacity, brand loyalty of consumers and has 90% of sandal soap market, foreign technology to suit indigenous condition due to government participation, little financial crisis with backup from government. A very good dealership network, which ensures that the products reach every loop and corner. A very little competition for its major products sandal soap. An ISO 9002 certified company has its own brand image. Abundant availability of raw materials. Two sandalwood oil factories in Shimoga and Mysore, which produce 75% of worlds sandalwood oil.

WEAKNESS:
High labor oriented cause due to excessive labor force. Defective marketing strategy lacks effective advertising and publicity. Needs updating with times in terms of plant and machinery. The large proportion of the target area is upper middle class and upper class people, it has very few offer to lower middle class. Unskilled labor coupled with excess labor hampers profitability Product lies under utilized.

OPPORTUNITIES
The toilet soap and the detergents market is an over expanding industry and a major company likes KS& DL with its manufacturing expertise can call the shots if it reaches peak manufacturing capacity. Existence of vast market and huge demand Traditional benefits that sandal is good for skin. Government support large production capacity. Good export market can tap foreign market vigorously. At present it has Good raw material sources to enhance production.

THREATS
Competition from other global leaders Government interference may reduce growth potential,innovation,management etc. As the company depends on forests for its main raw materials makes the company to find chemical alternative to sandalwood as sandalwood available is reducing day by day Other sandal soaps in the market. Competition from new multinationals in Soap business.

4.McKinseys 7S Framework:
The first three elements of mckinseys are strategy, structure &system are considered the hardware of success. The next four style skills, staff, and shared values are called the software. The complex relationship is as below-:

1. STRUCTURE OF ORGANISATION:
I. BASIS OF DEPARTMENTATION KS&DL is a manufacturing concern of moderately large size. KS&DL is Functional type of organization. Under this type of organization men with special abilities in a specialized function are employed. The hierarchy is represented as follows.

FUNCTIONAL DEPARTMENTS OF KS&DL 1. HUMAN RESOURSE DEPARTMENT:

H R D performs lot of function in KSDL. 1. Recruitment 2. Implementing. 3. Training 4. Cordial relationship of Industry 5. Disciplinary matters 6. Performance appraisal 7. Employee safety etc KSDL is trying its level best to ensure healthy & cordial relation with trade unions in all matters regarding industrial disputes & employee satisfaction.

HRD is act as a mother as it ensures people are treated perfectly well & widening the scope of the employees.

2.PRODUCTION DEPARTMENT:
KSDL has 3 main production plants: i. Fatty Acid Plant ii. Soap Plant iii. Detergent Plant

Fatty Acid Plant:

The basic raw materials, Oil & fats undergo the splitting & refining process including hydrogenation at the fatty acid plant. It is also obtained & used for soap making. The plant has a capacity to process 10,000mt of oils 1 fat.

Soap Plant:
The soap plant is one of the largest production plants in the country with an installed capacity of 26,000 tones per annum. KSDLs soap plant has its uniqueness that it has the capacity to process as many as ten different varieties of soap simultaneously.

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

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

Branch 1. Bangalore 2. Chennai 3. Hydrabad

Depots Hubli, Raichur Chennai, Salem, Madurai, Cochin Hyderabad, Vijayawade,Ananchapur

4. Mumbai 5. Calcutta

Bhiwandi, Ahmedabad, Pune Cuttack, Patna, Gauhati

Channel of Distribution:

Channel of Distribution:
KSDL manufactures their products i.e. soaps & detergents. After this sent to various distribution points through agents. The stockiest sells to various retailers hence it reaches to the consumers

Functions of Marketing Department:

1. Product Policy: It includes both the turns of development & improvement produced or existing products. This all totally done by KSDL both marketing & R& D department. 2. Distribution Policy: The manufactured product of KSDL is supplier to the factory depots. There are various depots in various states & stored there. 3. Sales & Promotion: the drawback is poor advertising & sales promotion. 5. Packing: Uses different materials for different products, card board boxes synthetic covers.

4. FINANCE, ACCOUNTS, AUDITING DEPARTMENTS:

It is the life blood of every organization. It is concerned with managerial decision making. This department is concerned with proper utilization of cash. It identifies the source of finance where to borrow i.e. ICICI, IRBI, IDBI, Corporation bank etc. It has abundant of function which can be enumerated as follows: Effective funds management which is inverted in beneficial projects. Decision making regarding fixing of cash account. Obtaining trade credit. Profit Maximization. Wealth Maximization. Preparation of cash budgets.

AUDIT DEPARTMENT:
KSDL audit wing is headed by interval auditor. Auditing is vital for the company as it facilitates verifying of all the books of a/c by trial balance, it also comply with

requirements for central excise & income tax purposes.After the Auditors monitor everything they give report which is helpful to the company.

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

5. MATERIAL DEPARTMENT:
Materials are obtained at right time, right quality at right place from right source & at right cost which leads smooth flow of production. It has been divided into 5 sections: Oil & fats section Perfumery & aromatically section Packing materials section Chemical section

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

6. RESEARCH DEVELOPMENT and QUALITY CONTROL

KSDL its full fledged quality control & R&D single mindedly pursue quality enhancement. Both departments are headed by highly qualified professionals, committed to developing products that keep place with customers changing needs & perceptive. When doing Research they have a target which they get benefits & it enables the company to forecast the future. Quality plays a very important role in KSDL majority of the products are consumer goods. So it must satisfy the consumer expectation. KSDL as 2QC division i. Raw material QC division

ii. Production QC division

7.MAINTENANCE DEPARTMENT:
Effective maintenance is the goal of the company. The areas of maintenance are: Mechanical Maintenance Electrical Maintenance Civil Maintenance Proper maintenance results to: Reduction of overload Cost Reduction Greater Safety of equipment & workers Delivery schedule is maintained. This department contributes also working progress of the company.

2.SKILLS:
The term skills includes those characteristics, which people use to describe a company. Organization have strengths in a number of area but their key strengths are dominant skills are few. These are developed over a period of time of the result of the interaction of a number of factors performing certain tasks successfully over a period of time, the kind of people in the organization, the top management style, structure, the management systems, the external environmental influence etc. Hence when organization makes a strategic shift it becomes necessary to consciously build new skills. However every person according to his traits possesses his own talents and special characters. This cannot be generalized skill among them.

3. STYLE OF MANAGEMENT:
Decision-making is centralized with the head office. Authority is given to unit incharge to take decision in day-to-day minor matters & other urgent matters. Decision-making depends on the authority & responsibility conferred on each individual & thus its distributed based on designation & position held. In important matters, meetings are held to seek opinions of top management & various department manager & the decisions are taken & implemented.

Decision-making is co-ordinate & done with wide consultations of top management of department managers consultation which gives best possible gains.

4. STRATEGY: Strategic planning is about asking questions, more than attempting to answer them. Strategy formulation entails a search for a different frame of reference. It is the quest for a new business paradigm. Strategy is a choice of direction and action; the company adopts to achieve itsobjectives in a competitive situation. Any statements on overall of functional strategy that the company may wish to share are: .Improvement in the existing products. Their future plans include launching of new products. The cost control exercise is in consolidation. Introduction of cost effective substitutes without compromising on quality Development of new perfumes, soaps detergents, agarbathis, creams and shampoos. 5. SYSTEMS: A. Accounting System:
Financial statements are prepared under the historical cost convention on an accrual basis and comply with the accounting standards refer to sec 211 (3c) of the companies Act 1956.

B. Costing System: process costing C. Inventory Control System

ABC analysis for stock control. FIFO method for issuing materials. Computerized accounting system for stores.

D. Performance Appraisal System:

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

6. STAFF:

As any employer, KS&DL follow ethical employment standards wherever it operates with a goal in mind company guarantees. 1. To fulfill its entire legal obligation in terms of employment payments and benefits practices. 2. Adequate and timely training for every one for the job for which they are employed. 3. Career advancement related to performance and experience. Allowances: The gross salary includes basic pay and 1. DA 2. City compensatory allowance 5% of basic pay. 3. HRA 20% of B.P who resides in rented house. 4. Conveyance allowance, Rs.595/- per month for workers. Family Travel Allowance: Rs.1000/- per year for an employee. 5. Shift allowance: 3 shifts, 1st: 6-2p.m 2nd: 2-10p.m Rs.15/- per shift. 3rd: 10pm Security Rs.25/- per shift. Regularly the administrative is 9.30am to 5.30pm 6. Leave allowance: 18 days privilege leave 7 days casual. Leave 15 days of sick leaves. 7. Canteen facility

7. SHARED VALUES: Values:

Values refer to the institutional standards of behavior that strengthen commitment to the vision, and guide strategy formulation and purposive action. The core values are shaped around the belief that enterprises exist to serve society. Thus company has embraced an extended role of trusteeship that reaches beyond the assets reflected in the balance sheet to encompass societal assets. An unwavering commitment to integrity, ethical conduct, meritocracy, teamwork and abiding concern for stakeholders are at the heart of your companys value system. Customer satisfaction Committed to total quality. Cost and time-consciousness. Innovation and creativity.

 Trust and team spirit. Respect for individuals. Integrity health and ethics.

5.Analysis of Financial Statement

PROFIT AND LOSS ACCOUNT (RS.IN LAKHS)

PARTICULARS

AMOUNT 2007-08

AMOUNT 2008-09

AMOUNT 2009-10

AMOUNT 2010-11

INCOME

Sales Other income

1,28,64,62,008 2,09,85,305 1,30,74,47,313

1533703531 60623797 1594327328 70374213

1,647,774,737 22,288,309 167,063,047 53,286,174

1,649,723,232 24,378,057 1,674,101,289 (24,703,198)

Increase/(-) Decrease in stock

2,64,66,726

1,28,0980587

1,66,4701,541

1,723,349,221

1,649,398,091

EXPENDITURE Materials Consumed (Include trading items) Other Expenditure Depreciation 61,35,25,868 35,77,430 1,15,8536,413 734442910 3969038 1,540,340,291 799,799,905 4,982,474 1,580,165,818 727,573,371 5,775,312 1,551,413,073

54,13,33,115

801928343

775,383,439

818,064,390

Operating Profit /Loss Less: Interest and Finance Charges

12,24,44,174

124,361,250

143,183,402

97,985,018

45,08,734

72,76,261

8,297,546

5,239,449

PROFIT BEFORE TAX Less: Provision for Taxation 1. Current Tax 2.Fringe Benefit Tax

11,79,35,440

11,70,89,988

134,885,857

92,745,569

1,80,00,000 70,98,690

1,85,00,000 21,28,828

48,000,000

34,000,000

3.Dividend tax 4.Deferred tax asset and prior period tax PROFIT AFTER TAX Prior Period Income /(-) Expenditure Deferred tax asset Proposed dividend Tax of earlier year 3,21,46,548 2,70,48,785 1,37,30,643 12,17,55,748 13,08,93,087 75,760,017 45,96,941 2,03,58,318 -

2,642,627

8,82,39,809

11,68,14,478

93,112,149

4,436,000 53,938,942

1,40,78,609

1,441,082

10,013,655

15,911,050 48,041547

Profit/Loss brought forward previous year Profit /Loss Carried to Balance Sheet

15,07,02,93

13,68,26,041

267,719,129

343,479,146

136,826,041

267,719,129

343,479,146

391,520,693

OBSERVATION:
The above profit & loss account shows that profit & loss for the year 2008-2011 of the company KS&DL. By analyzing the above profit & loss account we can come to a conclusion that the company was under profit for the year 2008-2010, but the profit after tax of 2010 and 2011 is reducing when compared to 2008 and 2009.

INFERENCE:
The financial statements show that from the year 2008-2011 the company has paid the excise duty for its imports hence it is interpreted that the company has started to import. This has in turn let to decrease in profit level of the company. Excise duty in the year 2008&2011 is more hence profit earned is less but excise duty is less in the year 2009&2010 and hence profit is much higher. There has been a decrease in stock 24,703,198 and increase in material consumption level which was also reason for loss in yr 2011.

BALANCE SHEET AS AT 31ST MARCH (AMOUNT IN CROREs)

Sources of Funds Capital Reserves and Surplus Exchange fluctuation reserve Secured 2008 31.82 13.68 1.04 2009 31.82 26.77 0.17 10.72 2010 31.82 34.34 8.09 2011 31.82 39.16 -

Unsecured Total Funds Employed Application of funds-: 1. Fixed Assets a) Gross Block Less Depreciation b) Net Block 2.Deferred Tax Liability (Net) 3.current assets ,loans and advances a. Inventories b. Sundry Debtors c. Cash and Bank Balance d. Loans and Advances e. Investment in gratuity fund Total Less-:Current Liabilities and Provisions I. II. Current Liabilities Provisions

9.00 61.96

8.35 77.83

8.35 82.52

8.35 79.32

29.61 23.71 5.91 3.21

30.96 23.98 6.98 5.25

32.72 24.14 8.59 -

33.65 24.36 9.30 6.25

29.60 14.63 33.43 10.49 -

40.75 16.35 25.51 21.53 5.00

51.61 17.27 28.53 21.40 5.00

52.52 16.58 24.03 18.97 8.00

88.17

109.14

123.10

120.11

30.88 16.67 40.62

24.67 20.50 63.98

29.23 26.91 67.81

27.35 28.99 63.76

Net Current Assets (6) Less

(7) Miscellaneous Expenditure Total Assets (Net) 2.80 61.96 1.64 82.91 82.53 78.32

6.1LEARNING EXPERIENCE
The training has exposed me to many facts of an organization and also helps me to gain practical knowledge and know about cooperation & relationship of each department in KS&DL.The learning experience gained by me has been much practical and usefull .The overall study of the organization reveals that the company has grown tremendously since its incorporation from 1918, now it has independent units for manufacturing sandalwood oils, toilet soaps, washing soaps, detergents, cosmetics, incense sticks and industrial products.Even though they have demand for their products in both domestic as well as international market, They are not able to establish themselves as market leaders due to various reasons such as extensive work force, non-utilization of installed capacities of manufacturing, lack of proper distribution network, lack of expenditure in the areas of advertisements and publicity, competitions of various soaps and detergents and lack of timely decisions Structure: I got to know how decisions are communicated, the flow of decision process. The way in which departments are classifieds on the basis of theirfunctioning. Skills: Through skills, how the training needs are satisfied to the employees ofdifferent grades. The different on-job and off-job training given to the employees. Style: Through style, I got to know how decisions flow from top to bottom in KSDL. How the production process is planned and worked out. How self managed teams perform to achieve the targets set by the management. Strategy: Supply Chain Management is one of the strategies adopted by KSDL, through which they are able to reduce the cost of production and increase profitability. System: System plays an important role of supporting and facilitating various activities that are carried out within the organization. KSDL adopts latest system.

6.2 FINDINGS:
It is a company wholly owned by government, so it has to follow the rules made by the government. The company is under utilizing its capacity. Its production is based on old technology, which leads to more wastes in the production process. Consumer awareness of its products is very less except for Mysore Sandal soap. Its products are not available easily in district places of states other than Karnataka. There is mismatch in production & sales activity. Recruitment in the company has been stopped since 1988 due to some circumstances and recruitments are taking place only in some department.

6.3 SUGGESTION:
KSDL has a wide variety of products but people are unaware of many products like Agarbathi, Detergents, Baby soaps etc., as its marketing is very weak. So it should spend both money and man power on advertising. They should also improve in building up the strong marketing strategy in order to improve the distribution channels and could be able to increase the sales other than the Mysore Sandal Soap.Thus the R&D should work effectively and achieve the break-through in new products and can make the company to earn more profits. The management should design Training and Development programmes and Career Development programmes and identify the skills or knowledge.

BIBLIOGRAPHY: i) Website; www.mysoresandal.com www.google.com ii) Books and Journals: KS&DL-Company Brochure Annual reports KS&DL. Marketing Management BY Sontaki Financial Management BY I M Pandey ,Khan jain