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“INTRODUCTION TO
SMALL SCALE INDUSTRIES”
INTRODUCTION:
The growth of Small Scale Industries in our country has provided
opportunities for self employment to educated youth Small Scale Industries
are regarded as a power tool for balanced regional economic development. On
the basis of the recommendations of the Central Small Scale Industries
Advisory Board, the state level organizations have been set up in all states to
assist the Small Scale Industries with regard to for distribution of various
industrial raw materials by procuring the same from the main producers
against the allocation made by ministry of Steel, Coal etc., establishment of
industrial estates etc. Karnataka State Small Scale Industries Development
Corporation Limited is one such Organization established on29th April 1960
under the Companies Act 1956.
Industries play an important role in the economic development of any
nation. Without industries, economic development is impossible. Again, in a
backward & developing economy like India, industries are indispensable. That
is why; Dr. M. Visvesvarayya remarked “Industrialize or Perish”.
Development of industries is not only indispensable for India, but also
there is good scope for the development of industries in our country. India has
many favorable factors for the development of industries.
Small-Scale Industries, started in rural areas, can provide alternative
employment to agricultural labour & relieve the pressure on the agricultural
land. They can also provide work to the farm workers during the non-
agricultural season. & also Small-Scale Industries offer scope for the
development of the hidden talents of people.
Since Small-Scale Industries form an important component of our
Industrial Set up was decided to concentrate on the Small-Scale Industrial
sector in this study.
CHAPTER 2
“INDUSTRY PROFILE”
HISTORY OF THE CORPORATION
KSSIDC (then Mysore Small Industries Corporation) is rendering
services to the small sector in the State for more than 40 years. It is both
befitting and appropriate to look back over the years and trace some of the
important events that took place during the period. With a moderate beginning
by occupying a small rented building in the outskirts of Bangalore, the
Corporation moved to its own building in the Rajajinagar, Industrial Estate.
Until around 1960, the State Government’s efforts to encourage the
development of small-scale industries were being pursued by the Department
of Industries and Commerce as a part of the Department’s overall strategy for
a comprehensive industrial development. From 1960, MSIC, then KSSIDC,
took over the activities relating to the management and setting up of industrial
estates and distribution of raw materials and started to give a new orientation
to this aspect of development. The Corporation started with an initial share
capital of Rs.10lakhs, which were gradually stepped up. The State
Government’s contribution to the equity of the Corporation during the first 10
years was Rs.20lakhs. The paid up equity capital of the Company for the year
ended 31st March 2004 was Rs.2466.66 Lakhs.
THE CRITERION FOR SMALL UNITS
Criterion for small units: Investments in fixed assets in plant &
Machinery has been criterion to determine the scale of the industrial sector of
unit. It is pertinent that investment in other assets such as Administration
Building, Lands & other fixed assets is not taken in to account. The traditional
measurement of size by the number of employees is not adopted.
CLASSIFICATION OF INDUSTRIES:
Tiny Industry
"Hard" elements are easier to define or identify and management can directly
influence them: These are strategy statements; organization charts and
reporting lines; and formal processes and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and
are less tangible and more influenced by culture. However, these soft elements
are as important as the hard elements if the organization is going to be
successful. The way the model is presented in Figure 1 below depicts the
interdependency of the elements and indicates how a change in one affects all
the others.
Let'
s look at each of the elements specifically:
Strategy: the plan devised to maintain and build competitive advantage
over the competition.
Structure: the way the organization is structured and who reports to
whom.
Systems: the daily activities and procedures that staff members engage in
to get the job done.
Shared Values: called "super ordinate goals" when the model was first
developed, these are the core values of the company that are evidenced in
the corporate culture and the general work ethic.
Style: the style of leadership adopted.
Staff: the employees and their general capabilities.
Skills: the actual skills and competencies of the employees working for
the company.
McKinsey 7S model with respect to KSSIDC
STRATEGY:
A strategy is the determination of the basic long term goals and objective
of an enterprise and the adoption of the course of action and allocation of
resources necessary for carrying out these goals.
The main strategy of KSSIDC is aimed to provide sustainable advantage to
the small-scale industries through their best service. KSSIDC has a customer
oriented approach that it could encourage small entrepreneurs entering the
field of business.
STRUCTURE:
The Company apart from Board of Directors and Managing Director
General Manager, Chief Managers including a Superintendent Engineer, who
constitute the core of the service management. The Company, apart from its
Head Office at Bangalore has Three Zonal Offices of which, one is situated at
Bangalore, another at Hubli and Third one at Mysore. The Company has
Eleven Division Offices headed by Deputy Chief Managers and 27 Raw
material Depots spread throughout the State of Karnataka. The total staff
strength of the company is 363.
SYSTEM:
Imparting training to the staff on various subjects organized through
KSPBE & other organization. Also organizing computer training programme
to needy staff based on request from the concerned officers of the KSSIDC
with the assistance of the Corporation department. Providing periodical
statistical information to the Government & to other inter-connected
departments.
SHARED VALUES:
The corporation’s principle objective is the promotion and development
of Small Scale Industries in the state. Construction and utilization of
infrastructure especially in backward areas procurement and marketing of raw
materials, technical support and assistance are means to reach the goals. A
concern for results, emphasis on quality and timely work and willingness to
understand problems of the entrepreneurs the staff creed and KSSIDC
constantly strive for this end.
STYLE:
In KSSIDC employees having dynamic & challenging behavior. The
targets are fixed in the beginning of the year and monitored according to the
scheme. The action plan is prepared at the commencement of the year i.e.
April of every year and work proceeds accordingly.
The style is neither strictly top down nor bottom up. It’s more of
transparent; any subordinate can interact with any superior at any time. The
decision making parameter is authoritative.
STAFF:
The functioning and activities of different departments and the personnel
have been aligned to achieve company’s business objectives by giving thrust
on rationalization of man power and focus on proper utilization. The
manpower strength as on 31st March 2008 was 372 of which 59 are women
employees. The proportion of SC/ST employees constituted 26.73%. Three
officers are on deputation from government of Karnataka and 12 officers/
officials have gone on deputation from the corporation to other organizations.
SKILLS:
The KSSIDC has personnel with a variety of skill. For different fields
they have personnel with different talents, skills and experience. It is a
participative democratic system so every decision is taken after discussion
with the personnel. Hence the personnel have good communication skills. The
company as a whole is very much skilled with the availability of intellectual
man power and resources.
CHAPTER 3
“ORGANIZATION STRUCTURE”
ADMINISTRATION:
TECHNICAL SECTION:
CHIEF ENGINEER
(Vacant)
Supdt. Engineer
Steno
JE (SG)-Ele-
BNG/Hubli
JEs(SG)- JE (SG)- JEs (SG)-
BNG BGM MYS
J. E.- GLB
CHAPTER 4
“DEPARTMENTAL PROFILE”
All Departments
1. Industrial Estate Activities:
Information such as allotment of sheds / plots, issue of
notifications, bidding, auctioning, allotment, pricing policy, execution of sale
deeds, resumption of sheds / plots etc. including Co-ordination covering
LA/LC matters.
KSSIDC Constructs/ Develops Sheds and Plots for allotment SSI
entrepreneurs in various Industrial Estates:
Table showing the Dimension of sheds :
Type Size Total Area Plinth Area Open Space
Shed (In Meter) (In Sq. Meter) (In Sq. Meter) (In Sq. Meter)
Apart from the above KSSIDC has also constructed Flatted Factories in
Peenya, KEONICS, and Rajajinagar.
Table showing the Dimension of Developed Plots:
Plot Type Area In Sq.Meter
L 785.00
M 1045.00
N 2049.00
P 903.00
Q 546.00
R 378.00
S 243.00
Odd Size
BASE
AREA PER FLAT PRICE PER
INDUSTRIAL ESTATE Flat No.
(IN Sq.Meter) FLAT
General Manager
(PR/Coml)
Chief Manager
Manager
Assistant
Managers
Group- III
(Junior Assistants)
Group- IV
(Senior Assistants)
PROCUREMENT AND DISTRIBUTION OF RAW MATERIALS
(A) PROCUREMENT
Raw materials like Iron and Steel are procured from Steel Authority of
India, Tata Iron and Steel Co., Rastriya Ispat Nigam Ltd., and Jindal
South West.
Government of India allocates the quantity of Steel once in a year to
KSSIDC with Rs.550/- rebate per month.
Items like MS Angles, MS Channels, MS plates, HR Sheets , CR Sheets,
GP Sheets, Joists, MS Rounds, TMT Bars (Thermo Mechanically Treated
for extra high strength) etc.
B. DISTRIBUTION
KSSIDC has established 23 outlets for distribution of raw materials
throughout the State.
One big stockyard with railway siding facility in Bangalore.
Materials will be stock transferred to all the 23 depots from stockyard.
Needy SSI units purchase the materials from the nearest outlet.
KSSIDC has also allotted lands in strategic locations adjoining
State/National highways for establishing Petroleum Product outlets
On long lease basis.
Sl. Thickness Rate per Rate per RATE PER SHEET (In Rs)
N0 Sq.Meter. Sq.Feet. 6’x3’ 6’x4’ 8’x4’
(In Rs) (In Rs)
1 3 mm 172.20 16.00 288.00 384.00 512.00
2 4 mm 199.10 18.50 333.00 444.00 592.00
3 6 mm 274.40 25.50 459.00 612.00 816.00
4 9 mm 387.40 36.00 648.00 864.00 1152.00
5 12 mm 473.40 44.00 792.00 1056.00 1408.00
3. Engineering Department:
Inviting Tenders for construction activities awardal of
tenders. Contractor’s management, infrastructural development in Industrial
Estates, maintenance of Civil Works, building management and all functions
relating to Engineering Department and Electrical works.
NOTICE INVITING QUOTATIONS
(For Quality Control Services)
1. KSSIDC intends to take up massive construction activity at various
places in the State. The works taken up are WBM roads, Metalling,
Asphalting to the roads in Industrial Estates, Drainage works, Construction of
sheds, M.S. Buildings, Common Facility Centre’s, Formation of new
Industrial estates, Residential layouts under Kayakanagara Yojana etc.
2. KSSIDC intends to appoint Third Party Quality Control/Quality
Auditing Agencies for the above said works. The details of proposed works
are at Annexure-‘A’.
3. Interested agencies may quote their lowest rates for the quality
auditing of the above works either in lump sum / on percentage basis. The
terms and conditions are indicated below:
TERMS & CONDITIONS
TERMS & CONDITIONS FOR QUALITY CONTROL/QUALITY
AUDITING SERVICES FOR KSSIDC WORKS.
# % "
& '
Buildings:
A minimum of 3 visits will be carried for quality inspection under the
following stages:
After excavation for foundation- for inspection of soil and confirmation of
type of foundation recommended.
b) Prior to casting of plinth slab/beam.
c) Prior to slab concreting. For inspection of shuttering and reinforcement
fabrication.During finishing works in progress for verification of quality of
construction, &overall examination of building, etc.
Roads
Inspection of pre-site conditions before work is taken up, after formation of
roads for inspection of type of soil and sub-base.
Inspection of WBM road formation, metal collection and metalling process.
Inspection of pre-road condition, material collection, inspection of asphalting
process.After completion of WBM road/asphalting road for inspection and
verification.
Culverts / CD works / Drainage
After excavation of foundation - for inspection of soil and confirmation of
type of foundation recommended.
Prior to casting of slab for culvert / CD works and casting of PCC / SSM
works in drains.During finishing works in progress for verification of quality
of works, overall examination of finishing works in culverts / CD works and
drainage.
PARTICIPATION IN EXHIBITIONS
The Company up to 1980 participated in a large number of National and
International exhibition as a part of dissemination of information as well as to
create Marketing Outlets for the products of SSI units. Participation in the
International Exhibition has resulted in securing substantial export order by
the SSI units. With this expertise the Company looks forward to help Export
Units to obtain their orders.
The Company up to 1980 participated in a large number of
National and International exhibition as a part of dissemination of information
as well as to create Marketing Outlets for the products of SSI units.
Participation in the International Exhibition has resulted in securing
substantial export order by the SSI units. With this expertise the Company
looks forward to help Export Units to obtain their orders.
OTHER ACITIVITIES:
The Company as a nodal agency for Co-Ordination with
Indian Standard Institution set up a laboratory at Peenya Industrial Estate for
ensuring the quality of the products manufactured in the State. This laboratory
provides modern testing facilities for types of products manufactured in
Engineering, Chemical, Electrical, Electronics and other similar areas. This
project with an investment of Rs. 100 Lakhs. Is financed by the State Govt.,
KSSIDC, KSFC, KSIIDC, NGEF, MML and IDBI. Further, the cost of
standardization and licensing fee will also be kept to minimum since the
laboratory will work on no profit basis. Likewise National Institute of Design
have come forward to associate with KSSIDC in setting up a branch of the
National Institute of Design at Industrial Estate, Rajajinagar and is extending
its services for the benefit of the small scale industry in improving the product
design and allied matter. Necessary infrastructure facility has been provided
by KSSIDC to this center.
Company has also provided the accommodation to National Productivity
Council for maintenance and service center at Peenya for the benefit of the
Small Scale Industries.
ENTERPRENEURAL DEVELOPMENT PROGRAMME.
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BENEFITS TO THE STAFF MEDICAL FACILITIES
Rs.3000/- per annum to meet out-patient medical expenses @ Rs.1,500/-
for every six months on production self certificate.
Rs.3000/- per annum to meet expenditure on diagnostic tests as Out-
patient expenses against production of bills from the recognized hospitals.
Spectacles re-imbursement of Rs.300/- for three times during service.
Reimbursement of In-patient expenditure at all recognized hospitals for
self & dependents. The recognized hospitals list includes WOCKHARDT,
MANIPAL, MALLYA, NARAYANA HRUDAYALAYA, HOSMAT, Etc.,
as per the norms of the Company.
Staff Benevolent Fund Trust (SBF) is in existence in which the
management is contributing Rs.30, 000/- p.a.to the trust for the purpose of
interest free Bridge loan to the medical treatment. Employee’s contribution is
at Rs.5/- per employee per month. In case of death while in service a sum of
Rs.10, 000/- will be given by SBF Trust to the legal heirs.
General Manager
(II/IEs)
Chief Manager
I/C
Manager
Assistant
Managers
Group- III
(Junior Assistants)
Group- IV
(Senior Assistants)
Financial Results
Sl. Particulars 2007-2008 2006-2007
No
1 Gross Income 10845.80 7768.03
2 Gross Expenditure 9726.62 7244.71
3 Profit before Tax 1119.18 523.32
4 Tax Provisions 411.00 311.29
5 Net Profit-after adjustments 747.58 233.32
6 Proposed Dividend 123.32 49.32
7 Surplus for the Year carried 599.30 175.62
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
A. Method of Accounting:
1. The books of Accounts are maintained on accrual system of accounting &
recognize significant items of Income & Expenditure on accrual basis. The
financial statements are prepared under historical cost convention & in
accordance with generally accepted accounting principles & provision of
Companies Act 1956. The accounts are generally prepared keeping the relevant
Accounting Standards prescribed by Institute of Charted Accountants of India to
the extent applicable to the activities of the company. However in the following
cases Cash accounting is followed;
a) Accounting of water charges received from the allot tees in industrial
estates.
b) The service & maintenance charges as per decision of board made during
1990 received from the allottees maintenance of industrial estates.
c) Premium paid on the Insurance cover of the Assets of the company
including current assets.
d) Insurance claims accounted as & when received.
e) Encashment of leave surrendered by employees while in service.
f) Custodian Charges received from KSFC in respect of Sheds Seized by
them.
B. Income Recognition:
The rental & other dues from the allot tees of Hand Tools Project,
Antharasanahally Industrial Estate, will be considered on receipt basis after
rehabilitation proposal sanctioned. No income under this head is so far been
considered in the accounts in view of sickness of all the units & there in ability
to meet the Company’s demand.
Terminal incomes if any, arising on account of seized sheds where no disputes
are pending from ex-allottee are recognized on their allotment.
C. Fixed Assets:
The Gross block of Fixed Assets is shown at cost, which includes taxes, duties
& other identifiable direct expenses in acquisition of fixed assets.
In cases of factory sheds, which are let out either on rental basis or used by
KSSIDC are treated as Fixed Assets & the cost includes prorated infrastructure
expenditure in the same manner as charged to the other entrepreneurs.
D. Depreciation:
The company decided to account the residual value as under:
a. In respect of Assets where the value remaining in books, before providing
such additional depreciation, shows residual value to the extent of 5%
b. In respect of Assets where after providing Current year depreciation , the
residual value remaining to the extent of 5% or below
As additional depreciation in that year & charged to P&L Account in that year
& a separate disclosure on the effect of providing such additional depreciation
will also be shown in the notes to account in schedule AB.
E. Investment:
The investments are shown at cost. Provision for diminution in the value of
Long-term investments is made only if such decline is other than temporary in
the opinion of the management.
F. Inventories:
a. Loose tools Depreciated at 15% on W.D.V.
b. Industrial Raw materials stock in trade valued at cost or realizable value,
whichever is lower, the Company has adopted FIFO method for the purpose of
valuation.
G. Retirement Benefits:
Retirement Benefits are dealt with, in the fallowing manner. Contributions
to Provident Fund are accounted on accrual basis with corresponding
contribution to regional Provident Fund Authorities.
H. Small Scale Industries Promotional & Development Expenditure:
The company contributes to certain Institutions/Associations engaged in the
promotion & development of Small Scale Industries either in part or full to meet
revenue and/or of capital expenditure of such institutions as decided by board &
such expenses are accounted as revenue expenditure.
I. Prior Period Items Etc:
Adjustments arising due to Errors or Omissions in the Financial Statements
of earlier years are accounted.
J. Segment Accounting Policy:
Policy on Primary Segment Reporting: The main activity of the Corporation
consists of establishment of Industrial Estates & Trading in Industrial Raw
material to facilitate the development & growth of the Small Scale Industries in
the State of Karnataka. Accordingly, for the purpose of the Segment Reporting,
the Corporation has identified two business segments Industrial Estate Activity
& Industrial Raw material Activity.
K. Provision for Current & Deferred Tax:
Provision for Current Tax is made after taking in to consideration of
benefits admissible under the Provision of Income Tax Act of 1961.
Deferred Tax resulting from “Timing difference” between book & Taxable
profit is accounted by using tax rates & laws that are enacted or substantially
enacted as on the balance sheet date. Deferred Tax Asset is recognized &
accounted only to the extent that there is a reasonable certainty that the asset will
be realized in future.
L. Grant & Subsidies:
Grants received from Government of Karnataka are fully credited to
deferred Government Grants account & are being accounted as under:
a. In respect of Government Grants related to depreciable Fixed Assets, are
being allocated to income over the period & in promotion in which depreciation
on the Assets is charged.
b. In respect of Grants received for non- depreciable Assets, based on policies
formed by Government & Management proportionate value of selling price
fixed for the Shed is transferred to individual allot tees account as & when
Allotment is made & possession is given on Lease-Cum-Sale basis or out-right
basis.
M. Borrowing Costs:
Borrowing Costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost of such assets.
A qualifying asset is one that necessarily takes substantial period of time to get
ready for intended use. All other Borrowing Costs are charged to Revenue.
N.14. Contingent Liabilities:
These are disclosed by way of notes to the Balance Sheet. Provision is
made in respect of those contingencies, which are likely to materialize into
liabilities after the year end, till finalization of accounts & have material effect
on the position stated in the Balance Sheet.
O.15. Related Party Disclosures:
Parties are considered to be related if at any time during the reporting period
one party has the ability to control the other party or exercise significant
influence over the other party in making Financial and/ or operating decisions.
As the company is State Controlled Enterprise related party disclosures are not
provided in the Financial Statement in respect of related party relationship with
other State Controlled Enterprises & transactions with such Enterprise. However
in respect of transaction between related parties during existence of a related
party relationship, a separate disclosure is being made.
7. Audit:
Scrutiny of files which requires certification by the Internal Audit
Department, pre-audit of files concerning issue of sale deeds, inspection of raw
material godowns, issues relating to Audit Sub-Committee of the Board, Stock
verification of Iron and Steel etc.
The company has internal audit system to commensurate the size & nature
of its business. However, the scope & extent of internal audit, needs to be
enlarged having regard to the complexity & diversified operations of the
company. The period of coverage has to coincide with that of the financial year
& the reports should be available for review.
Main activities:
Contesting court cases.
Furnishing legal opinions.
ADVANTAGES IN HAVING SSI UNIT IN KSSIDC INDUSTRIAL
ESTATE:
KSSIDC functions for all practical purposes like a core corporate body.
Estates are marked with a difference from Normal Private Estate. The
advantages to be a part of KSSIDC are:
1. KSSIDC Land is for Industrial Purpose. So no need to waste time for
N.A./NOC. Establishes its estates after verifying the viability and Water, Power,
Linkages, Communication, disposal of waste the entrepreneur gets a really
developed and planned area.
2. KSSIDC estates are provided with required amenities like Training
institute, P&T office, dispensary, police chowky, community garden banks
canteen etc.,
3. All titles related to land/building within KSSIDC estates are free from any
encumbrances and are easily marketable.
4. An entrepreneur can start the industry by collecting necessary possession
certificate and by paying necessary EMD.
5. KSSIDC provides ready to occupy sheds for immediate starting of
industries and also provide Gowdown for storage of its materials.
6. KSSIDC being a Government Organization is, transparent and of the prices
of land/building. The prices so fixed are accepted by Financial Institutions for
quick approval of loans.
7. KSSIDC estates, once declared as notified area, are free from Local Taxes
And Octroi.
8. KSSIDC estates, provides a unique opportunity to entrepreneur cluster
benefits related to Raw material, market technology services, linkages etc.,
9. Any up gradation programme undertaken in KSSIDC estate will be
advantage to all industries located therein.
10. KSSIDC provides special services in acquiring and allotting land to SSI
entrepreneurs.
11. KSSIDC allots land on top priority basis to start industry by SC/ST/SEDC
applicants, further to needy SC & ST units of Backward areas will be paid
subsidy amount and also reduced payment of EMD / application / scrutiny fee.
12. KSSIDC divisional offices established in the state will have raw-material
depots to distribute raw materials to SSI units.
13. KSSIDC estate provides ISI testing units to help SSI units to process quality
products.
14. KSSIDC collects the installment amount due from shed Allottees on annuity
method. KSSIDC estates where SSI units established will get easy loans from
financial institute and nationalized banks for purchase of machinery and also
loans to purchase raw materials.
LIST OF MAJOR PROJECTS HANDLED BY KSSIDC
1. A prestigious Government Tool Room Training Centre (GTTC) was
established with the assistance of Dutch Government at Industrial Estate
Rajajinagar.
2. An exclusive garment complex has been established at Rajajinagar Industrial
Estate to accommodate garment units.
3. Multi-storied complexes were established at Electronic City industrial estate
Bommasandra to accommodate electronic industries and Software Technology
units.
4. ISI Complex at peenya established to test and certifies the product
manufactured by SSI units.
5. Multi-storied complexes with flatted factory accommodation established in
each of the three stages of Industrial Estate Peenya to cater the needs of light
engineering industries, garments, electronics and others industries.
6. Multi-storied Commercial Complex established at Industrial Estate Shimoga
Multi-storied Commercial Complex was established at Industrial Estate
Gulbarga.
7. Power loom sheds for KSPDC at Siguli was established.
8. Morarji Desai Residential School Complexes at five places in Karnataka was
established.
JOINT VENTURE PROJECTS:
The Company has entered into an MOU with M/s Karnataka State Industrial
Investment Development Corporation to construct Information Technology and
Bio-technology Park in Rajajinagar Industrial Estate, Bangalore at a cost of 37
Crores. The land owned by company to the extent of 1.6 Acres has been leased
out on Built Operated on Transfer (BOOT) system for 30 years. The
construction is in progress.
FUTURE PLANS:
Developing of New Industrial estates at taluk levels.
Developing of growth Centre at Industrially backward areas.
Providing of effluent treatment plants at required estates.
Rendering of Solid waste Management services.
Improving of Road and drains facilities at the identified developed estates
out of Grants received from Govt. under Integrated Infrastructure
Development Scheme.
Distribution of industrial raw materials to SSI units established at taluka
levels on freight to pay basis.
To act as catalyst for export units.
To extend Hire Purchase Machinery Assistance.
To Promote Small Industry Cluster Development Programme.
To encourage establishment of Mini Tool Rooms and Testing Centre’s at all
the developed estates.
To explore ISO 9000/ISO 14001 certification Reimbursement Scheme for
individual Ancillary/tiny units
KSSIDC future Plans:
Establishment of Industrial Township by acquiring 1032 acres of land at
Ganapathi Halli, Bangalore district.
Establishment of Satellite Industrial Estates near Bangalore for shifting the
units situated in residential areas.
Establishment of Gem & Jewellery Park near Bangalore.
Establishment of 8 kayakanagaras for housing tiny industries.
Industrialization of 79 most & more backward Talukas as per the
recommendations of Dr.Nanjundappa’s report under “Kaigarika Vikasa
Yojane” introduced by Government of Karnataka
Establishment of functional estates for
Food Processing Agro & Horticulture
Garments Cold Storage
Pharmaceuticals Agarbathi
Granites Automobiles
Concessions Offered
Reservation ass per Government policy.
40% subsidy in price for sheds / Plots for SC/ST to a maximum of Rs. Two
Lakhs.
Other subsidies such as Capital Investment Stamp Duty exemption,
Registration charges, Tax concessions etc., will be extended as per
Industrial policy of 2006-2011 of Government of Karnataka.
The main objectives of KSSIDC are as follows:
KSSIDC provides a package of services to SSI units in the
State, which include establishment and maintenance of Industrial Estates all over
the State. KSSIDC Limited provides basic infrastructure facilities to small scale
industries in the State, construction and allotment of sheds / plots to SSI units in
the industrial estates located in Karnataka, procurement and distribution of raw
materials to SSI units, providing technical information and support, and also
participation in the SSI development schemes of the Govt. of Karnataka.
“SWOT ANALYSIS”
SWOT ANALYSIS:
Organizational strategies are the means through which companies
accomplish their missions and goals. Successful strategies address four elements
of the setting within which the company operates: (1) the company'
s strengths,
(2) its weaknesses, (3) the opportunities in its competitive environment, and (4)
the threats in its competitive environment. This set of four elements—strengths,
weaknesses, opportunities, and threats—when used by a firm to gain competitive
advantage, is often referred to as a SWOT analysis. SWOT was developed by
Ken Andrews in the early 1970s. An assessment of strengths and weaknesses
occurs as a part of organizational analysis; that is, it is an audit of the company'
s
internal workings, which are relatively easier to control than outside factors.
Conversely, examining opportunities and threats is a part of environmental
analysis—the company must look outside of the organization to determine
opportunities and threats, over which it has lesser control.
STRENGTHS:
There is flexibility in sheds & plots allotment according to the requirements
& so acquisition of acres of land by the Government.
KSSIDC estates are provided with required amenities like Training Institute,
dispensary office, police chowky, community garden bank canteen, IT park,
etc.,
All titles related to Land/Building with in KSSIDC estates are free from any
encumbrances & are easily marketable.
There is expansion of SSI sector & its share in Industrial Output.
There is mobilization of capital & entrepreneurial skill.
There is Regional dispersal of industries.
There are less industrial disputes.
Effective & supportive from the Top management.
All employees are highly moralized working together in friendly
environment accomplishment KSSIDC Vision.
Employees achieve success through working as a TEAM (Together
Everything Achieve Maximum).
Open to change, hungry to Learn, Anxious to move quickly to good idea.
WEAKNESS:
There is scarcity of Finance & Credit.
There is no technologically advanced.
There is problem of Raw Material – Absolute scarcity of Raw Material, &
High Cost.
Not adoption of computerized inventory control technique in godowns.
OPPORTUNITIES:
Investments are made from many Large-Scale Industries.
Effective utilization of uncultivated Land.
Make use of all available resources in most effective & efficient manner.
THREATS:
Competition from large companies is increasing.
MISSION STATEMENT
The corporation’s principle objective is the promotion and development
of Small Scale Industries in the state. Construction and utilization of
infrastructure especially in backward areas procurement and marketing of raw
materials, technical support and assistance are means to reach the goals. A
concern for results, emphasis on quality and timely work and willingness to
understand problems of the entrepreneurs the staff creed and KSSIDC constantly
strive for this end.
VISION:
“AN INDUSTRIALLY PROSPEROUS KARNATAKA IS OUR VISION”
Need for the study
The need for study is to acquire in depth knowledge about the
KSSIDC .It helps to compare the theoretical knowledge with practical aspects
during the study one has to acquire knowledge about origin, Growth, current
status & working condition of the organization based on data collected to make a
SWOT Analysis & draw conclusions.
Objectives
To study about different departments & their real working conditions in the
Organization.
To know about the different types of statutory & non statutory welfare
activities provided in the organization.
To know about the work culture rules & procedures & Strength of the
Organization.
To know about the hierarchy of organization span of control.
To know about the maintenance of workforce in the organization.
To analyses current status & future prospects of the organization.
To analyses the relationship between management and workers.
METHODOLOGY:
The study was conducted as to know organization structure in all
departments & their functions at KSSIDC .The study was non descriptive in
nature an attempt was made to know all the organization structure at KSSIDC.
The primary & secondary data are being collected for the purpose of
study. The primary data are collected through discussion interview by taking
prior appointment with concerned executives in all departments. The secondary
data are collected through company broachers, records, annual reports, journals,
etc.
Limitations of the study
The duration of the study is short & so the data collected may not be
Sufficient.
The information is collected is only for with academic interest.
Data for preparing this project report on organization study based on
Organization report & other secondary data not on the actual position.
“ANNEXURE”
BALANCE SHEET AS AT MARCH 31, 2008
Sl. No. PARTICULARS AS AT 31/03/2008 AS AT 31/03/2007
Rs. Rs. Rs. Rs.
SOURCE OF
FUNDS
SHARE
HOLDER’S
FUNDS
A Capital 246636000 24663600
B-1 Reserves & 243351936 489987936 183021666 429657666
Surplus
DEFFERED 60959631 111625048
GOVERNMENT
GRANTS
LOAN FUNDS
C Unsecured Loans 149173673 149173673 158240085 158240085
DEFFERED 34700000 32700000
TAX LIABILITY
TOTAL 734821240 732222799
APPLICATION
OF FUNDS
FIXED ASSETS
D Gross Block 445230090 455333848
Less: Depreciation 160459442 151304484
Net Block 284770648 304029364
Capital Work in 4341722 289112370 0 304029364
Progress
E INVESTMENTS 0 0
CURRENT ASSETS,
LOANS &
ADVANCES.
F-1 Inventories 495583347 460502519
F-2 Sundry Debtors 50908791 41085134
2432538626 2169139616
2
LESS:
CURRENT
LIABILITIES &
PROVISIONS
SUGGESTIONS:
Provide impetus to technology upgradation infrastructure by forging
symbiotic and mutually beneficial institutional arrangements between
Government Academic - R&D Institutions and Industry.
Enhance value addition in products and processes through rapid technology
upgradation.
Provide Industry access to high quality infrastructure
Create a policy framework to facilitate competitiveness of local industry and
enabling ease of doing business;
Enhance public and private expenditure to build efficient and competitive
Industrial infrastructure;
Assist the tiny, small and medium scale industries to upgrade their
technologies and manufacturing processes to face the increasing competition.
Enable industry to access new markets - domestic and export - through new
Products that meet global standards of quality and competitiveness.
Try to get more monetary incentive from the Government then only possible
to reach the vision within a span of time.
Try to improve Maintenance activities of industrial plots by using adopting
high level technology in a very systematic manner.
Bidding system in Industrial property is to be continued to augment the
resources in better way.
RECOMMENDATIONS:
As we know , very well that success is not a an overnight performance, it
takes a long period, such things can be targeted & aimed properly when one can
rectify his mistakes certifying his conduct, justify his expense & magnify his
vision. Avoids such mistakes & takes decisions for future &growth of the
company will run précised & perfect way.
Apart from dealing only one industrial Raw Material the company can
explore the possibilities of marketing other products required by SSI Units,
so as to provide materials to other units as well & improve the Company’s
turnover rate gradually.
Net profit of the company will be increased in the year 2007-08
to compare with the previous year. But it is quite low to the company. Hence,
the company as to reduce the operating expenses & increases the Net Profit
of the company.
The company tries to get maximum funds from the State
Government as well as Central Government in order to meet challenges of
global millennium.
Sales activities of the company will be very low & to take
necessary action to overcome this type of problem.
The company should change its Credit Policy & expedite the
collection of
due Debts.
CONCLUSION:
Karnataka is a developing State marching towards its development in
order to push our Karnataka to developed State so that development of Small
Scale Industries is much more essential. Then only possible to see over all
balanced development of our State.
Fully tap the potential of the Small Scale Sector to encourage the
establishment of new tiny & Small Scale industries, particularly in the rural
areas, to effective utilization of available resources in a efficient manner.
Last but certainly not the least as we know India is suffering from the
problem of over-population can be solved in two ways, viz.
By checking the growth of the population.
By improving the economic development of the country.
Improvement of the economy is synonymous with industrial development.
So, Industrial development is one of the means of controlling the problem of
over population of our country.