ksie os
DESCRIPTION
an os report on Kerala state industrial enterprisesTRANSCRIPT
CHAPTER – I
INTRODUCTION.
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The organization study is with the interaction to assess and acquire knowledge
regarding the functional as well as the managerial aspects. The main purpose of the
study is to familiarizes with the industrial practices and attain a firsthand experience
of the functioning of the organization. It provides a chance to interact with the
different departments and authorities in the organization. For this a study has been
conducted in KERALA STATE INDUSTRIAL ENTERPRISES LTD, KSEL
Vazhuthacaud, Thiruvananthapuram. This study is oriented towards understanding,
how theory is applied in practice, by interactions with the various departments in that
organization
Kerala State Industrial Enterprises Limited (KSIE) was set up in 1973 as a
Holding Company of the Government of Kerala under the Industries Department.
KSIE was formed to revive and nurse the sick units under the Industries
Department. KSIE was appointed as the custodian of the Air Cargo Complex at
Thiruvananthapuram Airport in 1979 by Govt. of India. Later on, KSIE extended its
operations to Kochi and Kozhikode Airports during 1985 and 1995
respectively. KSIE is successful in establishing, managing and efficiently operating
the Three Sales Emporia located at Thiruvananthapuram, Kochi and Kozhikode.
As part of expansion of Trading, the Company has stepped into e-business by
hosting its own e-com portal which also provides opportunities for small and medium
size business firms to join this venture as “partners in progress”. The E-com portal of
the Company” is the first of its kind in Kerala with online payment facility. KSIE is
also functioning as the Virtual Office of Agricultural & Processed Food Products
Export Development Authority (APEDA), Ministry of Commerce. Government of
India has appointed KSIE as the Virtual Office of APEDA in for Kerala.“Kerala
Soaps” the only manufacturing unit of KSIE was inaugurated on 1st January 2010 at
Vellayil, Kozhikode.
Kerala State industrial Enterprises Limited has launched our dream project –
Cochin International Container Freight Station (CICFS) at Eloor, Kalamassery on
25thJanuary 2011. KSIE is one of the State PSUs, running on profit and paying
dividend to the Government consecutively for the last 10 years. During the financial
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year 2010-11, the Company has registered a net profit of 410.70 lakhs and paid a
dividend of Rs.42 lakhs to the State Government.
1.1 OBJECTIVES OF THE STUDY
To study the entire functioning of the organization
To understand the functions of different departments in the organization
To analyses strength, weakness, opportunity and threat of the organization
To acquire knowledge about the company
To relate theory with practice
1.2 METHODOLOGY
1.2.1 Primary data:
Collected through observation
Collected from Direct Personal Interviews with selected personnel.
1.2.2 Secondary data:
The sources of secondary data are Company website, Government reports,
Journals, Company records, Periodicals and Published reports of KSIE
1.3 SCOPE OF THE STUDY
The study was undertaken to get a clear cut idea regarding the functioning of
the organization. The study covers the entire functioning of the organization, the
activities of different departments, the co-ordination among the departments etc. Also
the study helps in bridging the gap between the theory and practice of management.
Thus the significance lies in knowing things really as it is.
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1.4 LIMITATIONS
Limited time was a major constraint. As the time allotted for the study was
only one month, detailed study was not possible
Since the managers of different departments were engaged in various projects,
the collection of data through interviews was a bit difficult
Employees were not able to spend time due to their work adjustments
Because of official confidentiality, some of the details were not obtained. This
made some difficulties during the time of analysis
1.5 CHAPTERISATION
Chapter I :
Gives an introduction to the study. This chapter includes objectives of
the study, scope of the study, methodology and limitations of the study.
Chapter II :
Deals with the industry profile.
Chapter III :
Deals with the company profile of KSIE.
Chapter IV :
Outlines the organization structure and overall set up of the company,
the purpose of this chapter is to give a good picture of the company & its
structure.
Chapter V :
Deals with the departmental details of KSIE. This chapter discusses the
structure, duties and responsibilities of each department of KSIE.
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Chapter VI :
Presents SWOT analysis, and PESTLE analysis of the company.
Chapter VII :
Deals with the findings, suggestions & conclusion of the study.
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CHAPTER-2
INDUSTRY PROFILE
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2.1. SERVICE INDUSTRY
The tertiary sector of industry is one of the four main industrial categories of
a developed economy, the others being the secondary industry (manufacturing),
primary industry (extraction such as mining, agriculture and fishing), and (quaternary)
the sharing of information. Services are defined in conventional economics literature
as “intangible goods”
The tertiary sector of industry involves in the provision of services to business
as well as final consumers. Services may involve the transport, distribution and sale of
goods from producer to consumer as may be happen in wholesaling and retailing, or
may involve the provision of a service, such as in pest control or entertainment.
Goods may be transformed in the process of providing a service, as happens in the
restaurant industry or in equipment repair. However, the focus is on people interacting
with people and serving the customer rather than transforming physical goods.
Industries and Services have acted as twin engines propelling overall growth
in an economy. They are attracting large inflow of capital and foreign investments
into the country from all over the world. They play a vital role in accelerating socio-
economic development of a nation, thereby providing several categories of goods and
services (both tangible and intangible) and catering to the diverse needs of the masses.
These sectors are the largest generator of employment opportunities in the country
and a facilitator of trade and commerce with other countries. In other words, besides
agriculture, they are the basis of almost all the major policy initiatives, and schemes
as well as programmers and plans, both at the National and the State level.
Services sector has always been an attractive investment option for the
corporate world. It has facilitated the creation of several infrastructural facilities in the
country as well as enhanced the productivity of various industries. It not only helps in
economic upliftment of the society, but also promotes political and social well being
among the masses. The service industry comprising of information technology (IT),
education, health, media tourism etc. helps to shape the peoples opinion about various
national and international issues as well as increase their awareness by giving them
participative role in formulation of policies/plans. In other words a country cannot
achieve a higher growth rate without a larger proportion of services in gross domestic
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product (GDP). Accordingly, the concerned authorities have been making all efforts
to strengthen the pace of development of the sector in a sustainable manner.
2.2. COMPONENTS
The service sector consists of the soft part of the economy such as insurance,
government, tourism, banking, retail, education, and social services. In soft sector
employment people use time to deploy knowledge assets, collaboration assets, and
process engagement to create productivity (Effectiveness), performance improvement
potential and sustainability. The tertiary sector is the most common work place.
Typically the output of this sector is content, service, attention, advice,
experience, and discussion. Other examples of service sector employment include
Franchising
Restaurants
News media
Leisure industry
Consulting
Health care/hospitals
Waste disposals
Real estate
Personal services
Business services
Public utilities are often considered part of the tertiary sector as they provide
services to people, while creating the utility’s infrastructure is often considered part of
the secondary sector, even though the same business may be involved in both aspects
of the operation.
2.3 AIR CARGO OPERATION- A WORLD SCENARIO
Air Transport has a major force of economic growth, globalization of
production and distribution process. Air transport plays an important role in economic
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development and global integration. There benefits have been enormous. Contrary to
the belief Air Transport, benefit a very large section of society including the poor in
developing countries. The importance of Air Cargo Transport has increased. The
number of flights operating from different destination has also added to the purpose.
Experts in the industry feel that India has the potential to develop into a global air
cargo hub, particularly because of its trade relations with other countries and its
geographical location.
Due to a boon in the production of retail, textile and pharmaceutical goods air
cargo is a fast growing sector in India. Air cargo traffic is expected to register 8 to
10% annual gain over the next 5 to 10 years. If this is believed the requirement for
cargo handling staff is going to increase and moreover, the business potential that this
could generate would be tremendous.
2.4 INDIA'S POSITION IN AIR CARGO OPERATION
India is registering a sharp rise in movement of air cargo; the need for
expanding the existing infrastructure at airport is increasing being felt. Expansion
plans are being implemented but market analysts feel that these would not be
adequate in the long term. The growth of cargo at airport of the Airport Authority of
India at the Mumbai airport has been 8.1 per cent and 5.3 per cent against 3.8 per cent
and 2.2 per cent respectively for passenger traffic. The growth rate of air cargo in the
Asia-Pacific region is estimated at 9.4 per cent. Market analysts feel that this trend is
likely to continue. The growth of air cargo at AAI facilities and Mumbai airport is
project to touch 6.7 per cent and 6.6 per cent respectively. The International air cargo
of India swelled from 4.79lakh tones in 1996-97 to 6.48lakh tones last fiscal, domestic
air cargo grew from 2.02lakh tones to 3.33lakh tones during the same period.
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CHAPTER – III
COMPANY PROFILE
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3.1 HISTORY OF THE COMPANY
Kerala State Industrial Enterprises Ltd (KSIE) is a fully owned Company
established in 1973 as a Holding Company having seven Subsidiary Companies. All
the Subsidiary Companies were de-linked from KSIE w.e.f. 01/04/1999 and presently
KSIE’s activities are (1) Operation of Air Cargo Complexes and (2) Marketing
activities. KSIE is operating the Air Cargo Complexes at Trivandrum and Calicut and
Sales Emporia at Trivandrum, Cochin and Calicut.
Government of Kerala subscribes to the whole of the share capital of KSIE
Ltd. Being a government Company, all of its Directors are appointed by the
Government. Delhi based APEDA (Agriculture and Processed Food Products Export
Development Authority) of Ministry of Commerce, Govt of India appointed KSIE as
its virtual office in Kerala. It takes necessary steps to improve the performance of the
exporters and to attract new people in the field of exporting business. KSIE in
association with APEDA conducts seminars in Trivandrum, Cochin and Calicut in
order to make awareness about exporting business.
3.1.1 Activities of KSIE
Managing the Air cargo complex at Thiruvananthapuram and kozhikode
International Airports (ISO )certified
E- commerce
Functioning as virtual office of agricultural and processed food products
Export
Development authority (APEDA), ministry of commerce, Govt.of India.
Wherever in the world you require, whatever be the range of product you
require, KSIE can source them as per your specifications and deliver them to you.
This simply means that you no longer need to spend precious time and money
reaching out to different manufactures for your needs. All you have to do is talk to the
people at the Kerala State. Industrial Enterprises Ltd. (KSIE), the full service export
house of the Government of Kerala. Set up in 1973, KSIE offers you a wide range of
services and products .KSIE can source and Export a wide range of products for you.
Agricultural products, processed food, pharmaceuticals, Engineering products, custom
made software, kaolin, Garments, Rubber products, Toilet ices.
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KSIE can cater to a wide cross section of industry requirement, including
custom made orders. Being a 100% Government owned body, it has a longer aim to
source material. Their subsidiary companies also manufacture a wide range of
products giving us tremendous flexibility in terms of tailor made orders.
KSIE ensure stringent quality control KSIE ensure that all required parameters
are met before clearances we given. Being a Government body, KSIE have a
remarkable edge over other in terms of ensuring that your consignment reaches you
without any unnecessary delay. They respect budgets since most of the budget
product are sourced from public sector undertakings, they can offer maximum value
for money by maintaining a stable price without compromising in any way on quality.
They are100% Government owned .This give you the added advantage of having a
link in the Government that can help you in many ways, to advise and guide you
through formalities and other business ventures
The company's Industrial Relations developed through various training
programs conducted by the organization for the welfare of employees .Around 45
men attended in various operations. These training programmes helped the employees
to update their knowledge and get adequate exposure to latest development in
different were of management.
3.1.2 List of Clients
KSIE have a host of prestigious clients worldwide a few of them include
Wako Bussan Company Limited, Japan, Ornga Paris, France, Riyadh University staff
Housing project and Towell Construction company; Indian Railways ;Indian Tourism
Development Corporation (ITDC); Kerala Tourism Development corporation
(KTDC); TamilNadu Tourism Development corporation (TTDC) and so on.
KSIE are open to joint venture possibilities too they have a few select Joint venture
partners. if you are looking at a long term, mutually agreeable profit partnership They
are open for discussion, especially in areas like software, drugs and pharmaceuticals.
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3.2 STRATEGIC INTENT
3.2.1 Vision of KSIE
''To go beyond the best in facilitation''
3.2.2 Mission of KSIE
''Better work meets better Result”
3.2.3 Objectives
1. To carry on the business of managing Air cargo Complexes, including all
operations relating to handing of the Air cargo in airport and all other
activities associated and incidental thereto.
2. To take up and execute industrial consultancy work including but not Limited
to conducting surveys for identifying potential industrial and service units,
preparing feasibility reports, surveys executing and implementation of projects
as turnkey jobs otherwise and working as consultants in the field of industrial,
financial, Marketing, personal and industrial relation, advertising and other
services.
3. To carry on the business of buyers, seller, exporters, importers, agents, dealers
of all ceramic products including crockery cutlery, utensils etc, food products,
confection way and other edible items, fruits and merchandise required for
hotels and restaurant house hold equipment and implements, cosmetic and
stationery items, office equipment industrial chemicals and productions,
entertainment, electronic and consumer goods and durables of all kinds and to
carry on the business as buyers, sellers, dealers, suppliers of all agricultural,
horticultural, floricultural products and products from agrihorti sources,
including setting up of floriculture gardens.
4. To engage all areas of business in the field of information Technology and E-
commerce including rendering of service as interest service provides, soft
ware developers and exports and providers of service in the field of
technology for telecommunications, satellite equipment, web services
including web tusk.
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3.3.4 Quality policy
Our quality policy is to ensure "Quality Service" of Air cargo Handling
endeavour to achieve and maintain customer satisfaction. We are committed to make
continual improvement in all our activities
3.3 PRODUCTS
3.3.1 E- Commerce
As part of expansion of Trading, KSIE has stepped into e-business by hosting
its own e-com portal which also provides opportunities for small and medium size
business firms to join this venture as “partners in progress” and show-case their
products on a global basis to capture opportunities for doing business in the world
market. The E-com portal of the Company “www.keralarcade.com” is the first of its
kind in Kerala with online payment facility.
KSIE is the first state public sector undertaking to venture into such as the
business and is the only Government Company in this line it has tie-up with ICICI
Bank for the online payment solutions on business taking place through the site. The
company is offering “Kerala Special” products through the site as well as products
manufactured by large and medium scale industries both in the public and private
sectors. The portal also includes service sector via, hotel reservations.
A unique service provided by the company through its portal is the online
cargo tracking system. Passengers / customers who send their cargo complexes can
login to their site and check whether the cargo is arrived or not. If arrived, the date of
arrival, no. of pieces etc. are also displayed. No other cargo complex in the country is
offering such services at present.
3.3.2 Virtual office of APEDA
KSIE also holds the status of the virtual office of APEDA (Agricultural and
Processed Food Products Export Development Authority) for the state of
Kerala.Under Ministry of Commerce & Industry, Government of India. The activities
of Virtual Office of APEDA are looked after by the General Manager (Air Cargo
Complexes).
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KSIE as virtual office of APEDA will also provide the latest trend on agri-
produce which are having global trend on supply and demand on imports and exports.
Such information will be beneficial to growers, producers, manufacturers and
exporters of our state. Further the exporters can register their firm for exporting their
products to International Markets, apply for financial assistance schemes, collect the
trade information, Government notices etc.
3.3.3 TACT – Trivandrum Air Cargo Terminal
Major function taking place at Trivandrum terminal are:
Import
Export
Import Procedure
There are 2 categories of Import Cargo as indicated below.
1. Receipts of cargo from concerned Airline Storing.
2. Delivery of cargo to customs for clearance.
1. Receipts of cargo from concerned Airline Storing.
The import cargo is received from Airlines from 24 hrs. till the last flight
on all working days including holidays Sunday. Cargo is received against a copy
of the import general manifest enclosing a copy of each of the Airway bill. Upon
off loading the cargo in the receiving bays, Import Warehouse Register (IWR)
numbers are written on all individual packages all allotted against each airways
bill before they are transported to their respective rows assigned from 0 to 9. The
receiving officer enters the details of cargo received in the IWR. The above
feature is represented in Chart.3 (2).
2. Delivery of cargo to customers for clearance
Customers have to follow different formalities for the customs clearance. The
various steps to be followed by the customers for clearing their baggage both UB
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(unaccompanied baggage) Cc (Commercial cargo clearance) are shown in Charts 3(3)
and 3(4) respectively.
Export Procedures
The export cargo handled at TACT is of 2 types.
1. Perishable
2. Non-perishable
1. Perishable Types
Majority of the export cargo handled through this terminal is of perishable types.
They include vegetable, fruits, fish, meat & flowers. Perishable constitute about 90%
of the total export cargo. Providing cold storage facilities for sea foods, which was
constructed with the aid of Marine Products Export Development Authority
(MPEDA) and also providing a Cool Room Facility constructed with the assistance of
Agricultural and Processed Food Product Export Authority (APEDA) for storing and
processing of vegetables and fruits.
2. Non – Perishable Types
It’s also referred as General Cargo includes mainly commercial cargo namely
engineering products, textiles items such as ready – made garments etc. Besides this,
small quantities of spices like cardamom, etc. are also exported.
Exporters bring in perishable cargo just hours before the arrival of the flight.
The general cargos are received kept for a period of --- hrs to meet the securities
“cooling – off” restrictions as per the directives of Bureau of Civil Aviation Securities
(BCAS), New Delhi. To meet this requirement the perishables are subjected to a
100% open examination as well as X-ray screening by the concerned Airlines
securities personnel posted at the cargo terminal. The perishable shipments are
labeled, stacked & segregated regulation agency like “plant quarantine & fumigation”.
Being perishable cargo, they are subjected to X-ray screen by the concerned
Airlines & the shipments are immediately palletized inside the examination hall.
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Stuffed pallets/containers then transported to ramp-side of the Aircraft of loading.
Bulks of export shipments are received at the complex from ----- hrs and the terminal
charges are paid at the counter provided. A copy of the Airway bill is received by
TACT from the agent in respect of each payment. A formal receipt is issued to the
agent for the amount. The total collection at the end of the day is deposited in the
bank account. Details of the daily export shipments handled are entered in the export
warehouse register. The Chart 3 (1) shows the export procedure at TACT.
3.3.4 The Play of KSIE at TACT
Kerala State Industrial enterprises Ltd., has been appointed by the Government
of Kerala as an operating agency for setting up and running Air Cargo Complex in the
State. TACT is the first complex in the Kerala state for import and export. The
Trivandrum Air Cargo Terminal has been awarded the ISO 9001-2000 certification. It
is the first its kind in India to receive the ISO 9001-2000 certification. KSIE has the
major role in handling the export and import cargo. A well-equipped ware housing
facility is needed for cargo. The work done by KSIE includes
Depositing Of Incoming Cargo
When airline arrives, consignee copies of Airways Bill &Cargo manifest has
to be got from the aircraft. The handling agent will down load the pallets, ULD’S etc
into the complex Airline Staff, KSIE Supervisor& the handling agent will be present
at the complex.
Every pieces of cargo will be crosschecked by there and will be checked for
damages, if anything found it will be noted down. Then the workers keep cargo at the
godown & seal it .Even though the work seems to be very easy, it is very tough.
Handling
All the activities namely receipts, storage & delivery of the cargo require
handling .Porters carry out the hand long of the cargo with or without the use of
trolleys and forklifts. Proper care has to be taken to ensure that the damages to the
cargo are prevented during transportation.
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Storage
The cargo received from the Airline on behalf of the passengers has to the
stored in a systematic is for cash retrieval and delivery to the customers. The steps
involved in storing the cargo are.
1. Assign serial numbers i.e. inward warehouse register number to each
cargo/consignment.
2. Write indicate the IWR (Import Warehouse register) number on each cargo.
3. Storing the cargo in predetermined location.
4. Storing of cargo airline wise.
5. Assigning row number.
6. Placing the cargo in the respective row based on the last digit of the IWR
number
7. Separate location to precious metals.
8. Keeping medicines in refrigerators, etc
9. Storing commercial cargo in commercial cargo godown.
Preservation
1. All cargos are preserved inside the godown
2. Medicine product a like are kept in the cold store.
3. All cargo equipments are insured against fire, theft etc .
4. Fire fighting equipments are kept at different location inside the godown
5. Each day at the end all operation the entire godown are locked and sealed in
the presence of customs officials.
6. Each godown shall have two keys, one will be with the customs official &the
other key will be with the TACT officials
7. The godown will be opened in the presence of TACT officials and customs
officials
8. The godown in sealed condition will be handed over to the police at the end of
the day & will be received back from the police in the next morning in the
same condition.
9. The entire TACT is under tight security.
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10. Having proper post control measures is preventing damages to cargo by pests.
DIFFERENT TYPES OF CARGO
The different types of cargo
1. General Cargo
2. Unaccompanied baggage.
3. Perishable Cargo
1. General Cargo
Cargo sent for commercial purposes are general cargo. Thus are mainly
manufactured goods. As they are for hire commercial value much should be taken
while dealing with general cargo. Courier/Mails are another type of cargo.
2. Unaccompanied Baggage
There are the baggage send by the passengers when they are accompanying it.
In simple term a passengers can carry only …..(First class)… (Economy class)
respectively with them at free of cost. If he has got mere things to carry, he can book
it with the Airlines. Thus will send in a future date & in such a case, the passengers
needs not be accompanying the baggage in the baggage in the same aircraft.
3. Perishable Cargo
Cargo which has chance to decay, is called perishable cargo like food items.
These items will be exported quickly & if anything happens like delay in exporting, it
will be preserved in the cooling machine.
Cool Room
The company was able to commission the cooling room facilities measuring
13000 Sq. ft at TACT Premises. Financial assistance is providing by APEDA, for
setting up cooling room for storage preservation of fruits and floricultural products for
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exports. A chilled cool room of 518 sq. ft. was also setup at TACT with the help of
APEDA.
Chart No: 3.1- Export Procedures at TACT
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Reception
Filling shipping Bill with customs
Issue of Identity card to exports agents
Entry of export cargo having Airway Bill and
Collection of Terminal charges
Customs Examination and ReportingUnloading of cargo at TACT
premises
Perishable Cargo
General CargoCooling
Security Check & Taking over by the Airlines
Containerization by Airlines
To Airport
Chart No: 3.2 - Receipt & Storage Import Cargo
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Receipt of import general manifest & Airway wings of consignment
Transporting to the consignments to the predetermined location and taking properly
Recording of formal taking over of cargo
Assigning corresponding IWR numbers to all the packages in each of the consignment
Taking weights in case of damaged package
Nothing physical condition of the cargo
Receipts of cargo in presents of custom officials as per the Airway bills shown in the manifest
Loading of cargo at the port bay by the Airlines
Assigning serial numbers (import warehouse register numbers) to each consignment in the manifest
Preparation of import warehouse register
Chart No: 3.3 Unaccompanied Baggage Clearances
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Issue of gate pas at the gate
Reception
Arrival notice by Airlines to the consignee
Issue of delivery order by the Airlines
Collection of ware housing charges from the consignee
Retrieval and delivery of UB to customs
Filling baggage declaration with customs.
Inspection and assessment of duty by customs
Receipt of duty etc by the Bank at TACT
Issue of exit passes for unaccompanied baggage
Issue of clearance certificate by customs
Final checking at the gate for proper delivery
Chart No: 3.4 Commercial Cargo Clearances
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Issue of identity card to the customs house agents
Reception
Arrival notice by Airlines to the consignee
Issue bill of entry by customs house agents with customs
Retrieval and delivery of Cargo to customs for INSP Inspection and assessment of duty
by customs
Payment of duty and other charges
Receipt of duty etc by the Bank at TACT
Collection of warehousing chargesIssue of clearance certificate by customs
Final checking at the gate for proper delivery
Issue of exit pass and delivery of cargo
3.3.5 Current Achievements
The Company has provided a fully covered expert processing area within the
export premises, Calicut Airport. This fulfills a persisting demand from the trade for
providing such a facility. Total amount invested is Rs. 46/- lakhs. This was
commissioned in Feb. 2008. During the year company commissioned a
Manufacturing unit for Soap Products at Calicut. Company’s new Project of
Container Freight Station at the new Vallarpadam Container Terminal, Kochi is in
Progress.
During the year 2011 company achieved EXPORT AWARD 2011 from
hon’ble Minister Of Industries.
KSIE Chairman Shri. M.C.Mayin Haji inaugurated the newly constructed APEDA
aided Cold Storage at Calicut Air Cargo Complex on 18-08-2012.
Looking ahead
Shopping mall cum office complex
Sales Emporia in all districts
Air cargo complex attached with the proposed Kannur Airport
Terminal as an International cargo hub
Immediate Plans
State-of-the-art new Air Cargo Complexes at Thiruvananthapuram and
Karipur airports
Establishment of a Mega Trade Centre at Thiruvananthapuram
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CHAPTER – IV
ORGANISATIONAL STRUCTURE
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Chart No: 4.1 Organisational Chart
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4.1 ORGANISATIONAL SET UP
Being a governed owned company, the management of KSIE is vested with
the board of Directors. A managing Director is appointed from time to time for the
smooth and efficient running of the company. He is assisted by
Secretary of General Manager (Finance)
General Manager (Air cargo Complex)
General Manager (Human Resource)
General Manager (Development)
General Manager (Marketing)
BOD - Board of Directors
MD - Managing Director
S&GM (F) - Secretary and General Manager,
AGM - Assistant General Manager
ACC - Air Cargo Complex
GM - General Manager
TACT - Trivandum Air Cargo Terminal
CACC - Calicut Air Cargo Complex
AM - Assistant Manager
GM (D) - General Manager, Development
GM (M) - General Manager, Marketing
CFS - Container Freight Station
GM (HR) - General Manager, Human Re Resource
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CHAPTER - V
ANALYSIS - OBJECTIVE WISE
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Kerala State Industrial Enterprises Ltd., mainly consists of five Functional
Departments. These departments are intended for the proper and effective
functioning of the entire organization.
The various department of KSIE are listed below:
1) Air cargo Department
2) Marketing Department
3) Finance Department
4) Human Resource Department
5) Development Department
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5.1 AIR CARGO DEPARTMENT
Chart No 5.1: Structure of Air Cargo Department
KSIE started its 1st Air cargo complex in Trivandrum in the year 1979 and
subsequently Cochin Air cargo complex was started. However, after the establishment
of CIAL, this was handed over to them calicut ,Air cargo complex was started in May
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GM
AM
AGM
EXECUTIVE
SENIOR SPECIAL GRADE GENERAL ASSISTANT
STENOGRAPHER
SENIOR ASSISTANT
GENERAL ASSISTANT
JUNIOR ASSISTANT
ATTENDER
1995, at Beach Road, Calicut and later the entire operation was shifted to the
company’s own building at Karipur, in the present location in September , 1999
5.1.1 Operation of Air cargo complexes
In 1979, Government of India took a decision that Air cargo complex should
be set up at suitable location by the concerned state government. The complexes were
intended bring all Export / Import activities under one roof. To begin with
Trivandrum was identified as a suitable location and the government of kerala
appointed kerala state.
Industrial Enterprise limited as the operating agency for setting up Air cargo
complex in the state Accordingly KSIE has established three Air cargo complexes
each at Trivandrum, Cochi and Kozhicode. It is worth mentioning that as of today,
KSIE has managed these cargo complexes efficiently and succeeded in operating
them in profitability. However the cargo operation at Kochi was commissioned.
As per the public notice no 3/1993 from the office of the collector of central
Excise and customs, cochin, the KSIE Ltd Trivandrum have been duly appointed as
the custodian of all imported goods landed at Airport Trivandrum until they are
cleared for home consumptions or are warehoused or are transshipped in accordance
with the provision of chapter 8 of the customs Act 1962
The Trivandrum Air cargo terminal has been awarded the ISO 9001-2000
certification .Trivandrum Air cargo terminal is the first of its kind in India to receive
the ISO 9001-2000 certification.
The online cargo tracking facility launched by the company through its
website www.keralcade.com is a unique one of its kind in the country. The customer
friendly services provide by the company at its Air cargo complexes ac rates cheaper
than that of its competitors at other Airports is one of the major attraction of the
importers and exporters to opt for these Air ports in the stale of their business purpose
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5.1.2 Achievements so for made
1. Expansion of Trivandrum Air cargo Terminal (TACT)
The cargo complex at Trivandrum has a covered area of about 35000 sq.ft for
the use of importers, exporters and other user agencies.
Additional infrastructure facilities including the expansion of export
processing Area, office complex, X-Ray machines, weigh Bridges .have been
established at a total cost of RS 391lakhs 50% of the project cost of this modernizing
program was financed under the AIDE Scheme (Assistance to states for Infrastructure
Development for Export) of the central Government The company from its internal
accruals meets the balance amount.
About 90% of the cargo Exported from Trivandrum Air cargo Terminal is
fresh vegetable, which normally arrive at midnight to catch the flight between 4 am to
8.30 am. Most of the outbound flights are taking off in the early house of the day and
hence, maximum space is needed for processing the export consignments during three
peaks house all the operation such as unloading, weighing and x –ray screening,
palletisation are to be done under one roof for different Airlines at the same time.
Now it is possible in the Air cargo complex and all the operation have been brought
under one roof and synchronized accordingly by commissioning the new export Bay
of 2370 Sq. mtrs.
A weigh bridge with 20 T capacities has also been commission for processing
export consignment. A modern passenger lounge has been constructed additionally in
the main building of the Terminal .They have provided separate office facilities for
the customs department, Airline, IATA agents, banks etc .sufficient office
accommodation is also provide for various agencies ,All users are provided with
Internet facility, free of charges
They have also provided cold storage facilities for sea foods, which was
constructed with the aim of marine products Export development Authority (MPEDA)
and provided a cool Room facility constructed with the assistance of APEDA
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(Agricultural and processed food products Export development Authority) for storing
and processing of vegetables and fruits.
KSIE had carried out two major expansion projects at TACT. It has also obtained
quality certification from the Bureau of Indian Standards as per IS: ISO 9001-2000
standards, as early in the year 2003. TACT is the major center for export of
perishables from South India. Nearly 75 MT per day of vegetables, fruits and other
perishables like meat, fish, flowers etc. are exported from TACT. Spices, handicrafts,
textiles etc. are also uplifted. As regards Import, TACT has now capacity to handle
upto 75MT of Import cargo per day on an average.
International flights from Trivandrum Airport stands shifted to new Aiport
Terminal commissioned by the AAI with effect from 01.03.2011. Along with this,
KSIE has created necessary infrastructural facilities near the new Airport terminal at
Chackai to carry out export operations smoothly. AAI had leased out around 4000
sqm. land to KSIE for this purpose. This arrangement will continue for the time being
until the dream project of KSIE to construct a new cargo terminal of international
standard in 10 to 15 acres of land to be allotted to KSIE by the Government of Kerala.
Customer friendly service provided by the company at TACT at competitive rates
is one of the major attractions for importers and exporters to opt for TACT for their
business purpose
2. Expansion of calicut Air cargo complex (CACC)
The Calicut Air cargo complex was constructed at a total cost of 500 lakhs. At
present CACC has total built up area of 3,990 sq.m. Now KSIE in the second stage of
expansion of Calicut Air cargo Complex. As part of this, they are planning to
construction office space for Exporters, Airline; plant Quarantine, KSIE and customs.
Providing of additional cargo handling equipments, networking stations etc are also
planned at an estimated project cost of RS 310 lakhs. Calicut Air cargo Complex also
achieved the status of ISO Certified Cargo Complex.
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EDI-MES facility
In accordance with the directions with the government of India a web based
EDI centre is set up at TACT for the benefit of importers, Exporters, Airline etc. This
center is equipped with computer system with Internet Facility, which can be made
use of all the user agencies to transact through their business through the web many
other cargo complex yet to start this facility.
Trading Activities
In additions to the cargo complex, the company is also engaged in trading
activities particularly in the field of Hotel amenities, medical equipment, student
amenities and other house add utensils the company is also doing E-com business
through its site www.keralaarcade.com.
The company as a part of marketing activities entered in to the field of export
and able to export a container load at Trivandrum dioxide to middle east further as
part of expansion activity of E-com the company held up with foam matting
(INDIA).Alleppy for the sale of their product through E-com site.
5.1.3 Air Cargo Operation
The income from Cargo operations showed an increasing trend during 2009-
10. The Cargo Complexes achieved a turnover of 1132.23 lakhs as against the
turnover of 861.40 lakhs in the previous year. Both Air Cargo Complexes maintain a
high standard of Quality in its services justifying their status as ISO 9002 Certified
Cargo Terminals.
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5.1.4 Future plans
1. Ground Handling facility
The company is planning to establish Ground handling facilities at
Trivandrum Airport in association with other Airline. Basic discussions were
held in this regard with representatives of Airlines based in the Middle East.
2. Setting up of Mega Trade Center
The company is planning to set up a mega trade center at Trivandrum
in the chacka kazhakuttam by-pass area. by the establishment of this facility
we are hopeful that foreign traders can be attracted to the state, which means
foreign investment and employment potential.
3. Setting up of Rail Side Warehouse
Discussions were held with Indian railways during the last month for
establishment management of rail side warehouses for near the major Railway
station in the state.
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5.2 MARKETING DEPARTMENT
Chart No 5.2: Structure of Marketing Department
KSIE was mainly set for the overall development and control of the following
six industrial units fully owned by the government
1. Trivandrum Rubber works Ltd.
2. The kerala ceramic Ltd.
3. Travancore plywood Industries.
4. Kerala Electrical and Allied Engineering Company Ltd.
5. Kerala soaps and Oils Ltd.
6. Kerala state Drugs and pharmaceuticals.
Marketing is the function of business concerned with the creation of a
customer. In addition to the operation of Air Cargo complexes at Trivandrum and
Calicut Airport, KSIE is engaged in the trading and marketing activities ranging from
consumer goods to industrial products.
KSIE is successful in establishing, managing, and efficiently operating the
three sales emporia located at:
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GM
DGM
AGM
AM
Executives
Thiruvananthapuram
Kochi
Kozhikode
It supplies hotel ware, house hold items, hospital amenities, Harmony brand note
books etc at reasonable rates. KSIE is also nominated as the authorized Export house
for the Government of Kerala. As a part of expansion of trading, the company has
stepped into e- business by hosting its own e-com portal, which also provide
opportunities for small and medium size business firms to join this venture as “
partners in progress” And show case their products on a global basis and capture
opportunities for doing business in the world market. The e-com portal of the
company www.keralarcade.com is the first its kind in Kerala with online payment
facility.
KSIE also functioning as the virtual office of agricultural & processed food
product export Development authority (APEDA), ministry of commerce. Govt of
India has appointed KSIE as the virtual office of APEDA.
5.2.1 Duties and Responsibilities of Marketing Department
1. Prepare annual sales and expenses budget for the marketing department, by
collecting the individual units’ detailed budget& to ensure its targets with the
assistance of the emporia manager.
2. Establish good relationship and good rapport with the three emporia personal,
other officials, marketing agents and our clients.
3. Ensure that all records are filed properly after taking appropriate actions;
ensure entries are made in the ledgers after they are being scrutinized.
4. Preparation and submission of statements to MD/GM based on the statements
from three emporia in the first week of every month also see that information
such as cash book sales, sales statements, monthly performance, dues
statements etc are received from the emporia at the right time.
5. Make consolidated monthly, quarterly and yearly statements based on the
performance of the 3 emporia & make a review on it.
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6. Supervise stock taking of three emporia and prepare stock statement during
year end and ensure its timely completion for auditing purpose.
7. Ensure consolidation of total purchase of each emporium and its submission to
accounts department, when called for.
8. Original Purchase bills & imprest vouchers are properly scrutinized before it is
recommended to General Manager marketing for arranging payment.
9. Sending of reminder letters for those who fail to pay the sales proceeds within
the stipulated period in consultation with each emporium.
10. Liasoning of marketing agent dealer and establish good public relation.
11. Ensure that 3 emporia comply with Govt/Local Body’s Rules and regulation in
respect of sales Tax, Corporation Tax and other fee if any.
12. Conduct market survey of products proposed by KSIE whenever necessary,
identify new products to be marketed though emporia and find out the area
where more concentration is to be given to boost up sales.
13. Advise cost effective measures to emporia wherever possible.
14. Supervise the work of the subordinate and carry out the general administration
of marketing department in the absence of General Manager Marketing.
15. Consultation with other officers in the marketing Department, Emporia
officials and marketing agents in matters relating to business development of
marketing department.
16. Carry out institutional sales, submission of tenders, quotations offer
identifying suitable sourcing agents with the approval of GM, Marketing.
17. Contact parties for selling note book and procure advertisement of notebooks.
18. Arrange sending of correspondence to various parties in connection with
marketing
19. Ensure timely payment of rent, telephone bills, Electricity bills, preparation of
rent agreement with tenants in the respective areas.
20. Attend to any other duties and responsibilities assigned by GM, marketing
from time to time.
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Trading
The three sales Emporia at TVM, Kochi, and Calicut and e- com site together
achieved a turnover of 690.69 lakhs during the year as against 835.84 lakhs
achieved in 2008-09.
5.3 FINANCE DEPARTMENT
Chart No 5.3: Structure of Finance Department
Finance is the life blood of every business. The finance department is
concerned with the planning and controlling of firms financial resources. It deals with
finding of various sources for raising and economical for the needs of the business.
The appropriate use of such funds also forms a part of financial management.
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DEPUTY GENERAL MANAGER (FINANCE)
ASSISTANT GENERAL MANAGER (FINANCE)
EXECUTIVE (FINANCE)
PA
SECREATRY GENERAL MANAGER (FINANCE)
5.3.1 Functions of Finance Department
1. Cash management
2. Proper keeping of records in respect of assets and other valuables of the
company.
3. Keeping of records pertaining to daily transactions of the company.
4. International audit in respect of the transaction of the company.
5. Verification of correctness of income and expenditure of the company.
6. Filling of proper returns documents with the registrar of companies.
7. Timely completion of Annual reports and accounts of the company.
8. Carry out instructions from chairman and managing director.
5.3.2 Accounting Policies
The financial statements are prepared under historical cost convention in
compliance with applicable accounting standard referred to in sub. Section (3c) of
section 211 of the Company Act 1956. Accounts are maintained on accrual basis
expect in the case of the following.
Payments of gratuity reimbursement of medical expense, festival
allowance leaves encashment to the employees.
Income from the investment deposits.
Income from warehousing charge.
The premium of gratuity – cum – life assurance scheme with LIC of
India and other insurance policies.
Payment of annual maintenance contract for plant machinery.
a. Inventories
Inventories are taken by the management valued at cost of market price
whichever is lower on first in first out basis.
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b. Sales
Sales comprise of the sale of goods through the imperial export sales.
c. Fixed Assets
Fixed assets are stated at the cost of acquisition itself consultation fee,
installation fee, architectural fee, etc.
d. Depreciation
Depreciation for fixed assets other than land have been provided for a
written down value method in the manner provided under schedule 14 of the
companies Act 1956. The current rate have been applied on the fixed asset as well
as on the additions from the date of purchased the assets put into use as per the
guidelines of the institute of chartered accountants of India free hold land
additions to land have not been depreciated.
e. Investments
Investment are valued of cost the company has not been manufacturing
anything so there is no consumption of Raw material by the company.
5.3.3 General Duties of Finance Department
1. To determine the financial resources required to meet the companies
operating program.
2. The forecast as to how much of their requirements could be mend by
internal generation of funds how much will have to be obtained from
outside sources.
3. To develop the best plans to obtain the required funds from outside
sources.
4. To establish and maintain a system of financial control for the proper
allocation and utilization of funds.
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5. To formulate a program for a most effective profit volume cost
relationship.
6. To report and analysis of the financial result of all operations with
appropriate recommendations regarding future operation to the
management.
7. To make special studies with a view to reducing cost, improving
management efficiency and profitability.
8. To scrutinize the capital expenditure scheme relating to the new projects or
expansions, feasibility studies etc. in order to ensure that
i. The capital expenditure proposed would be the furtherance of the objective
for which the enterprises have been established.
ii. The expenditure proposed to be incurred.
iii. The expenditure would result I ensuring reasonable profits.
iv. The proposals have overall economic viabilities and
v. That the financial resources for meeting the expenditure would be
available.
9. To function as the principal co-ordination office for the preparation of
i. A long term capital operating budget covering a period of 10 years
indicating the likely profit or loss year during the period.
ii. A long term capital expenditure budget covering a period of about 10 year
advising the management.
iii. A capital expenditure budget in regard to the capital expenditure that is
expenditure that is expected to be incurred during the year.
iv. An annual operating- budget and
v. The budgetary control including periodic review of performance.
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10. To prepare cash flow statement, based on the long- term budget indicating
the inflow and out flow of cash during different periods and to prepare a
detailed monthly cash flow statement for the year based on the annual
budgets.
11. To prepare cash flow statement, based on the long- term budget indicating
the inflow and outflow of cash during different periods and to prepare a
detailed monthly cash flow statement for the year based on the annual
budgets.
12. To make an assessment of the total working capital requirements for the
fiscal year to advise the management regarding the source for obtaining
the same.
13. To associate with all matters relating to the purchases of equipments raw
materials, etc. and to lay down suitable procedures for purchases to ensure
that adequate control is exercised over them and uneconomic purchases are
avoided.
14. To advise the chief executives on the pricing policies to be following in
the organization as regard the selling prices of products, inter – department
issues, charging of material to job etc.
15. To advise the management on all service matters, having implication such
as scale of pay, dearness allowance, bonus gratuity etc.
16. To function as the principal officer in charge of accounts, budget and
internal audit of the company. To maintain adequate records of assets,
liabilities and transactions of the company.
17. To ensure that a proper adequate system of cost account is maintained to
enable complication and control of costs. To render reports to various
levels management in regard to the respective items of expenditure under
their control.
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18. To ensure maintenance of adequate system of store accounts. To assist
management in determining the maximum and minimum ordering levels
of various items and also responsible of the introduction and operation of
the ABC method of control with a view to reducing the inventory holding
to the optimum level. To ensure proper verification of stock at periodic
intervals.
19. To ensure that the annual account are prepared in time according to
provisions of law. He will attend to all matters relating to statutory audit
and audit by the controller and Auditor General.
20. To be the custodian of cash of the company to function as the principle
disbursing officer and to ensure that adequate financial control is exercised
in the sanction, allocation and the use of funds in accordance, with
approved program budget policies and regulations laid down by the board.
21. To attend all the matters relating to the company.
22. To take up from time to time special studies particularly with reference to
cost reduction and economics in administration and other overhead
expenditure and also in such other area as have a bearing on the
profitability of the company.
23. To ensure that market surveys are carrying out for the products
manufactured and to manufacture in the undertaking to facilitate there
marketing. To furnish the prospective costs of the products so as to enable
the managements to decide the optimum product mix.
24. To discharge the secretarial duties responsibilities pertaining to the
company.
25. To approve traveling programs of officers and staff working under him.
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26. To sanction traveling allowance bill of staff and officers working under his
administrative control subjects to normal rule and audit.
27. To sanction casual leave, sick leave and compensatory leave to employees
under his administrative control as per rule.
5.3.4 Income/ Turnover
Finance Department undertakes the maintenance of records and accounting
and auditing functions. During the year 2009-2010 of the Company earned a total
income of 2017.10 lakhs as compared to 1855.75 earned in the previous year. Major
portion of the income comes from the operation of Air Cargo Complexes followed by
income from trading activities. Proportionate contributions made by the activities
during the year 2009-2010 under report are:
Air Cargo Complexes - 56.13%
Trading through Emporia - 34.24%
Other Incomes - 8.47%
Sales from Soap unit - 1.15
Other income includes rent, commission on sales prior period income and
other miscellaneous income.
The Finance Department makes assessment of the total working capital
requirements for the fiscal year and advices the management on all service
matters, having implications such as scale of pay, dearness allowance, bonus,
gratuity etc. annual accounts are prepared in time according to the provisions of
law.
KSIE is one of the State PSUs, running on profit and paying dividend to the
Government consecutively for the last 10 years. During the financial year 2010-11,
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the Company has registered a net profit of 410.70 lakhs and paid a dividend of Rs.42
lakhs to the State Government.
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5.4 HUMAN RESOURCE DEPARTMENT
Chart No 5.4: Structure of Human Resource Department
Human Resource Management is management of people in an organization. In
any organization Human Resource Department is of pivotal importance as it is
concerned with manpower which is the greatest asset of an organization. It is the
sense of planning, organizing and controlling the various operative functions of
producing, developing, maintaining and utilizing the labor force for the purpose of
controlling a lot towards the accomplishment of major goals of the organization.
Human Resource Department has got for finding out the correct personnel, giving
training etc.
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AGM (HR)
Sweeper
Driver
Attender - 2
Executives (Administration)
PA
Telephone Operator
ASST - 2
General Manager
5.4.1 Duties and responsibilities of Human Resource Department
General
Preparation of ESI statements and its remittance, filing of returns, registration
of employees and all other connected issues.
All matters connected with recruitment rules, selection and appointment,
deputation, posting and transfers.
Preparation of attendance statements and salary deduction statements if any.
Upkeep and maintenance of all leave records attendance records etc.
Training programmes and seminars
Printing and stationery purchase
Library and periodicals
Maintenance and updating of files and file register of HRD
Providing secretarial assistant to GM (HR) as required
Assisting to manage the front office, receipt and dispatch work etc as and
when required
Complimentary advertisement or notifications
Any other work assigned by GM (HR) from time to time
Matters relating to fundamental rights of women at work place
Employee matters
Look after service matters of all employees
Obtain Performance Appraisal of Managerial staff
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Collection of property statements from employees
Put up proposals for granting annual increments to staff
Submit proposals for promotion of all employees
Look after staff welfare activities
Initiate disciplinary action against employees
Reimbursement of medical expenses to employees
5.4.2 The main function of HR department at KSIE including following
1. Recruitment and Selection
2. Training and Development
3. Performance Appraisal
4. Wages and Salary administration
5. Incentives
6. Policies
7. Industrial Relations
8. Grievance Redressal
9. Discipline
10. Employee Welfare
11. Workers participation in management
12. Trade union
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1. Recruitment and Selection
i. Recruitment
Application are invited through
Newspaper advertisement
Company website
Magazines
ii. Selection
Staffs
They are selected through Public Service commission
Managers:-
They are selected through Direct Interview and it includes,
Inviting and receiving application
Screening application
Interview (6 to 8 members)
Employment Test
Aptitude Test
Personality Test
Intelligence Test
Communication skill
Contract labours are selected through
Employment exchange
TRAINING AND DEVELOPMENT
Training is the art of developing knowledge and skill of an employee during a
particular job. Training helps in the learning of job skills quickly by a worker. It will
improve the job status and pay of workers
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Training method
1. On the job training
It refers to the training provided with a view to increase the knowledge and skills
of an employee for improving performance on the job. Employees may be taught the
correct methods of handling equipment and machines used in a job. Such training
helps to reduce accidents, waste and inefficiency in the performance of the job.
2. Off-the job training
In this method a trainee has to leave his place working and denote his entire
time for training purpose. During this period the trainee does not contribute anything
to the organization
3. Performance Appraisal
It is an effective control technique as it provides a regular feedback to the
appropriate about his/her job performance. It is an important document which
provides the basic of vital inputs for assessing the performance of an employee,
his/her training needs and for his/her future advancement in career. Employees’
performances are measured once in a year performance appraisal form is of two types.
a) Staff category
b) Managerial category
For staff category their job Knowledge, skill/quality of work, Job attitude, personal
characteristics, Attendance and punctuality, Initiative etc. will be noted. Each factor
carries maximum point of ten. Employees in the staff category will be assessed by the
reviewing officer Then it goes to General Manager CHR) to managing director
For managerial category, performance appraisal form has two parts-A and
part-B. Part A consist of self appraisal form and part B Consist of evaluation of
managerial and personal factors .Self assessment has to be made by the appraisee in
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part A of the format and submitted to the appraiser (Reporting officer). The reporting
officer has to offer his remarks on part A on the basis of objective judgment of the
over all self appraisal.
Assessment regarding managerial and personal factors in part B is to be made
by the Appraiser (i.e. Reporting officer) and reviewed by the reviewing officer. Each
factors carriers a maximum point of ten and thus part B carries maximum point of
hundred.
4. Wages and salary administration
The goal of compensation administration is to design a cost effective pay
structure that will attract motivate and retain competent employees. The present salary
of KSIE is based on Govt. policy. The scale pay officer and staffs are given below.
5. Incentives
KSIE follows the compensation as per the regulations applicable to State Public
Sector Undertakings with a scale of pay and yearly increments to each of its category
of officers and staff and the Dearness Allowance as announced by the State
Government from time to time.
Basic Pay + Dearness Allowance, Medical reimbursement, Provident Fund,
gratuity etc
Performance Incentives (Bonus)
Festival Allowance
Granting Annual increments to staff
6. Policies:-
Leave Policy
Attendance Policy
Recruitment policy
Promotion Policy
Promotion policy
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Usually promotion is based on the performance of an employee which is
evaluated through performance appraisal sheet Workers are promoted based on
seniority officers are promoted based on merits, seniority, additional Qualification etc.
7. Industrial Relation
There is a cordial industrial relation and there is no conflict and dispute
between the employees and employers. There is no strikes and layout.
8. Grievance Handling Procedure
Grievance is a written complaint given by an employee and claiming certain
treatment. Grievance means any type of dissatisfaction or discontentments arising out
of factors related to an employee’s job which he thinks are unfair. A grievance arises
when an employee feels that something has happened or is happening to him which he
thinks us unfair unjust or inequitable
The grievance redressal committee consists of members from both
management representative as well as trade union representative .They take up the
problems of employee and try to arrive at a satisfying decision for the employee as
well as the organization.
Procedure for handling employees’ grievance
1. The aggrieved employee verbally explain his grievance to his immediate
supervisor
2. If the supervisor has not settled the grievance, then it is sent to higher level
manager.
3. If it is still not settled, and then grievance is sent to grievance committee.
4. If it is still not solved, the employee can address the issue to the management
5. The final step is taken when the grievance is referred to an arbitrator who is
acceptable to the employees a s well as the management.
9. Discipline
Every company follows some ethics in their business. If any employees
are trying to violate the rules and regulations of the organization it may affect the
smooth flow of business. So KSIE usually give following types of punishment to
the employees who are indulged in any disciplinary action against the company
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a. Dismissal
b. Demotion
c. With held increment
d. Warning
e. Suspension without wages
Disciplinary action
Issuing a letter of charge
Consideration of explanation
Show-cause notice
Holding of a full-fledge enquiry
Making final order of punishment
Follow-up
10. Employee welfare measures
Medical Reimbursement for employees
Insurance
Library
Festival allowance
Recreational activities
loan concession
11. Workers participation in management
WPM is the participation resulting from the practices which increase the
scope for employees’ share of influence in decision-making at different tiers of
organizational hierarch with committing assumption of responsibility.
Participation makes them more responsible. They become more willing to
take initiative and come out with cost saving suggestions and growth oriented ideas.
Suggestion box
Staff meeting in every week
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12. Trade union
Two registered Trade unions
KSIE staff association
KSIE Employees Association.
During the year under review the Industrial relations in the company remained
very cordial. A number of employees were deputed to attend various training
programmes conducted by reputed institutions. These training programmes have
helped the employees to update their knowledge and get exposure to later
developments in different areas of management.
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5.5 DEVELOPMENT DEPARTMENT
Chart No 5.5 Structure of Development Department
As KSIE started operating they had 8sudsidiaries. Presently it handles only the
2 Cargo complexes
1. TACT-Trivandrum Air cargo complex
2. CACC-Calicut Air cargo Complex
TACT was developed with the financial assistance of APEDA and MPEDA.
Calicut cargo complex was recently built and development department including civil,
electrical and air conditional activities monitored all construction activities.
In post, Development department hand advisory role in the field of marketing,
finance, personnel etc .Project work study etc were controlled by Development
department. Yearly Development Report, monthly Development report etc were
watched by Development Department.
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GM
Electrician
EXECUTIVE ELECTRICAL
EXECUTIVE ELECTRICALAGM
Electrician AM
DGM
5.5.1 Functions of Development Department
Functions are limited only to KSIE, which is in the construction field.
1. Identification, visualization, formation of project for development of Air cargo
complex.
2. Maintenance management of cargo complex.
2. System Implementation and monitory of projects.
KSIE had provided cold storage facilities for sea food, which was constructed
with the aid of marine products Export Development Authority (MPEDA) and also
provided cool room facility constructed with the assistance of APEDA for storing and
processing of vegetables and fruits. Internet based cargo Tracking system was
installed by KSIE at TACT and CACC for the benefit of the importers.
In addition to the above the expansion of export processing Area, office
complex, weigh Bridgers, filly acr conditioned passenger lounge etc have been
established in the cargo complex recently Re-aligning and installation of x-ray
machines with most modern facilities have been done in the cargo complexes to
enable processing of export cargo of various flights at a time; fully adhering to the
security measures prescribed under BCAS regulations. A fully secure sterile area has
also been provided as required under the security regulations
KSIE has also provided separate office facilities for the customs Department,
airline, IATA agent, Bank etc sufficient office accommodation is also provided for
various agencies. All users are provided with Internet facility free if charges and
Responsibilities
5.5.2 Duties and Responsibilities of Development Department
1. To plan new projects – expansion, diversification, modernization and provision
for balancing equipments for the companies and to advise MD in these matters.
2. To prepare project report including feasibility study locating sources of finance,
organizing material availability and process details.
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3. To ensure implementation of the projects and monitoring the process at periodic
intervals.
4. To assess existing plant capacity and to ensure full utilization of capacity.
5. To prepare proposal for including in the five year plan in consultation with
finance department.
6. To conduct work study & job evaluation and ensure implementation of the same
in consultation with manager personnel and Industrial relations.
7. To participate in the recruitment of technical personnel like Engineers,
Technologists etc.
8. To organize Research and Development wing.
9. To sanction Traveling Allowance Bills of officers and staff under him as per
normal rules subject to audit.
10. To sub delegate with the consent of the delegator to officers of staff working
under the Development manager and to ensure the Development manager and to
ensure discharge of function entrusted to them.
11. Negotiating with financial institutions for project finance.
5.5.3 Recent Works
Recently Government approved for Ship Cargo.It is based on vallarpadam
Terminal - 2012
TVM Air Cargo Export Complex - 2011
Kerala Soaps Manufacturing unit expansion
Second phase - 2010-11
First Phase - 2009-10
Kochi Container Freight station - 2011
Calicut Air Cargo expansion
Second phase - 2010
Construction of Calicut Export complex - 2008-09
Tvm Air Air Cargo expansion
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Second phase - 2004-06
Kerala Soaps
Government of Kerala presented “Kerala Soaps”, the new Soaps
manufacturing unit as a “new year gift” to the people of Kerala in a fabulous
ceremony. The unit set up by Kerala State Industrial Enterprises limited at Vellayil,
Kozhikode envisages to produce the erstwhile brands, manufactured by Kerala Soaps
& Oils Limited conceiving its legacy. The installed capacity of the unit is to
manufacture 6000 MT / Annum of Toilet Soaps and Bathing bars. On completion, the
second soap finishing line which is under progress, will augment the installed
capacity to 12000 MT/Annum.
The premium soaps like Kerala Sandal, Thrill introduced into the market
have created a new sensation in the minds of the people. The Kerala sandal soap
contains virgin sandal oil and is recommended as beauty soap. The brands
like VEP Bathing Bar, Kairali Bathing Bar, Kerala Carbolic Soap bar (Koaltar) and
“Washwell” detergent cake are available in all leading shops
Kavya Maadhavan will be the Brand Ambassador for all Kerala Soap
products.
Container Freight Station
As part of its diversification process, Kerala State industrial Enterprises
Limited has started its yet another prestigious project, Cochin International
Container Freight Station. This is situated at Eloor hardly 14 Kms away from the
Vallarpadam International Container Transshipment Terminal and along the side of
ICTT connectivity road reaching Kalamassery. This is the first of its kind in the
Public Sector segment with state-of-the-art facilities. The CFS is set up in 8.5 acres
land with the following amenities.
Around 1,00,000 Sq.ft go-down area for Import & Export operations.
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45 Capacity Reach stacker for easy and trouble free stacking of Containers
High Quality Forklifts for handling cargo
Online Cargo tracking system
24 hrs safety and surveillance system
100 Ton Weigh Bridge
Location advantage of our CFS
Easy entry and exit access for Containers/ Trailers
Space for Customs, Liners, C&F Agents, Transporters
24 hrs Canteen facility
Parking facility for over 50 vehicles
Elegant Conference hall
Good rapport with Customs and Port Authorities
Experience and expertise in Air Cargo Operation by managing two
International ISO Certified Air Cargo Complexes in Kerala
Team of experienced officials and supporting staff to cater to customers
needs
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CHAPTER – VI
SWOT AND PESTLE ANALYSIS
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6.1 SWOT ANALYSIS
STRENGTH
WEAKNESS
OPPORTUNITY
THREATS
To achieve proper firm – environment fitness, company’s strengths,
weaknesses, opportunities and threats should be understood. This analysis is
commonly known as ‘SWOT Analysis’ – strength and weakness are internal factors.
Opportunities and threats are external factors.
The SWOT analysis is an extremely useful tool for understanding and decision
making for all sorts of situations in business and organizations. SWOT is an acronym
for strength, weaknesses, opportunities & threats. The SWOT analysis heading
provide a good frame work for reviewing strategy, position and direction of a
company or business proposition, or any other idea. Use SWOT analysis for business
planning, strategic planning, competitor evaluation, marketing, business and product
development and research reports. SWOT analysis can be used for all sorts of
decision – making, and the SWOT templates enables proactive thinking, rather than
relying on habitual or instinctive reactions.
STRENGTHS
1. Strong financial position
2. Good post records
3. Most profit making PSU in the State
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4. Highly skilled manpower
5. Efficient management
6. A strong relationship between the management and employees
7. Good reputation among customers
8. Large storage facility to keep the import / export cargo
WEAKNESS
1. Promotional activities are less
2. KSIE take time to adopt new technologies.
3. Falling behind in R & D
OPPORTUNITIES
1. Lot of reforms in the new industrial policy to facilitate industrial units.
2. Liberal Government policies and the favorable change in the attitude of
Government help the company.
3. Support from the State Government.
THREATS
1. Major decisions cannot be implemented without the approval of State
Government.
2. Political interference
3. Entry of new competitors.
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6.2 PESTLE ANALYSIS
Political factors
Economical factors
Social factors
Technological factors
Legal factors
Environmental Factors
PESTLE ANALYSIS stands for “political, Economic, Social, Technological,
Legal and Environmental analysis’’ and describers a framework of macro-
environmental factors used in the environmental scanning component of strategic
management The model has recently been further extended to steeple and STEEPLE
and STEEPLED, adding education and demographic factors .It is a part of the
external analysis when conducting a strategic analysis or doing . market research and
gives a certain overview of the different macro environmental factors that the
company has to take in to consideration .It is a useful strategic tool for understanding
market growth or decline, business position, potential and direction for operation
The growing importance of environmental or ecological factors in the first
decade of the 21st century have given rise to green business and encouraged aided
spread use of an updated version of the pest framework STEER analysis
systematically considers Socio-cultural, Technological, Economical, Ecological and
Regulatory factors.
Political Factors
Political factors include- Government regulations and legal related to KISE
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define both formal rules under which KISE must operate. Some of the factors that
could be included are
Tax policy
Environmental regulations
Political suitability
Economic Factors
Economic factors affect the purchasing power of the political customers and
the firm's Cost of capital.
Economic Growth
Interest rates
Inflation rate
Social Factors
Social factors are demographic and cultural aspects of the external micro
environment. These factors affect customer needs and the size of the potential market
No cultural activities are promoted by KSIE because it is an industrial
enterprises limited.
Technological
Technological factors can lower barriers to entry, reduce minimum efficient
production levels, and influence outsourcing decisions some technological factors
include.
R & D activity: Research and Development activities in KISE done through
external consultancy.
Automation: The entire organisation is now computerized with latest
technology up gradation.
Rate of technology change in KISE in recent years is really appreciable.
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Legal Factors
The activities of KSIE comply with all requirements of the Factories Act.
Proper auditing and taxation
Environmental Factors
KSIE is an organization with eco-friendly products, process and premises
The infrastructure and facilities in KSIE is so designed for not harming the
environment
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CHAPTER – VII
FINDINGS, CONCLUSION
AND SUGGESTIONS
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7.1 FINDINGS
1. The overall organizational climate of the KSIE is satisfactory.
2. The employees are well qualified and well experienced.
3. The Company has an internal Audit System commensurate with its size and nature
of its business.
4. The Company is not dealing in or trading in shares, securities, debentures and
other investments
5. The organization is honest and ethical in its operations.
6. It is a highly profit making company
7. The employees are satisfied with the policies which are in practice and scale of
pay at present
8. No canteen facilities are provided to the employees
9. The employees have commitment towards their job
10. Female employees dominate in Human Resource of the enterprise
11. Computerization of all department is effective
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7.2 CONCLUSION
KSIE, Ltd is one of the State PSUs, running on profit and paying dividend to
the Government consecutively for the last 10 years. KSIE is a highly profit making
public sector Enterprises under the Department of industries, Govt. of Kerala KSIE
commands a place of high esteem in the field of Air cargo management apart from its
strength in marketing and E-commerce activities. KSIE has won in January 2000, ISO
9002 for its Trivandrum Air cargo Terminal Quality policy of Air cargo complex is to
ensure quality Service KSIE is the one and only cargo complex which has the
recognition in India at present KSIE venture into E-Business through its E-com portal
www.keralrcade.com which was set up during 1999-2000 Constructive movement of
all the employees so that they take pride in their job and their organization
themselves.
Today, the organization can take pride in the development it had made over
decades but still had not quenched its thirst in the areas of innovations and
developments. Now they are venturing into more areas like Infrastructure
Development (Office- cum- Shopping Mall), Logistics Management (Ship Cargo –
Vallarpadam Terminal), Production of Kerala Soaps etc.
The study conducted at KSIE was useful in studying how an organization
works, what are the intricacies involved in ensuring proper functioning of an
organization etc. The study helped me to get familiarized with the organization KSIE,
its working, services etc. The working of various departments were also studied and
analysed. Based on the data collected, the performance of KSIE was analysed and it
was found that the organisation shows a better performance in terms of its objectives.
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7.3 SUGGESTIONS
KSIE is currently doing very well. It is one of the most profit making
company still some improvements could be made to make its working more efficient
with the least time involved in it some recommendation suggested by me are
1. Promotions can be based on executives’ performance and achievement of targets.
2. The medical facilities available in the enterprise are to be modified and new
facilities will be introduced.
3. The enterprise can try to reduce the workload of workers by appointing more
employees.
4. KSIE Management may arrange a better and spacious dining facility andimprove
quality and variety of food in the canteen, in the case of TACT.
5. KSIE should indulge more promotional activities.
6. More care must be given to the safety aspect of employees.
7. The organization needs to practice better HR policies that motivate the employees
and thereby they have more commitment toward the organization which triggers
good and conductive organizational climate in which the employees feel to
perform their best.
8. The company should install the Network facility for the smooth functioning of all
departments.
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BIBLIOGRAPHY
BOOKS
1. Aswathappa, K. (2005), “Human Resource and Personnel Management”,
New Delhi: Tata Mc Graw Hill Publishing Company Limited, 4th Edition.
2. Kothari, C.R., (2005), “Research Methodology and Techniques”, New Delhi:
New Age International Publishers.
3. Prasanna Chandhra, (2004), “Financial management Theory and
Practices”, Tata Mc Graw Hill Publishing Company Limited, 4th Edition.
4. Sekaran Uma, (2006), “Research Methods for Business : A Skill Building
Approach”, New Delhi : John Wiley & Sons, Inc.
JOURNALS
KSIE 38th Annual Report 2010-2011
KSIE 37th Annual Report 2009 – 10
KSIE 36th Annual Report 2008 – 09
WEBSITES
http://www.ksie.net/
http://www.keralarcade.com/
http://www.wikipedia.org/
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APPENDIX
Particulars Current Year 2009-2010
Previous Year 2008-2009
INCOME
Income from trading activities Income from manufacturing activities Income from air cargo operation Interest Other income
Total(A)
EXPENDITURE
Trading activities- cost of goods soldManufacturing activities
- Cost of material consumed
- Direct expensesPersonnel expensesAdministrative expensesSelling expensesFinancial chargesDepreciation
Total(B)
Net loss on exchange of old capital itemsDonations
Total(C)Profit before tax (A) – (B) – (C)
Less: provision for DTL Provision for income tax
Profit after tax
Appropriation of profitProposed dividendTax on dividendBalance on profit transferred to General reserve
TOTAL
69,068,5112,32,717
113,223,2849,124,3567,996,250
201,710,118
64,570,742
1,506,583787,609
34,837,98426,919,4065,399,488
69,3975,186,869
139,278,078
-150,000
150,00062,282,040
1,247,78319,998,521
41,035,736
4,200,000 693,000
36,142,736
41,035,736
83,584,0070
86,140,21310,392,7215,457,661
185,574,602
79,732,260
00
23,296,47120.222,5251,257,220
74,9234,564,901
129,148,300
3,729275,000
278,72956,147,573
26,09518,415,450
37,706,028
4,200,000713,790
32,792,238
37,706,028
KERALA STATE INDUSTRIAL ENTERPRISES LIMITEDPROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2010
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KERALA STATE INDUSTRIAL ENTERPRISES LIMITED
BALANCE SHEET AS AT 31-03-2010
Particulars Current year 2009-2010
Previous year2008-2009
I SOURCES OF FUND
(1) Shareholders’ Funda) Share capitalb) Reserves and surplus
(2) Loan funda) Secured loansb) Unsecured loans
(3) Deferred Tax Liability (Net)
TOTAL
II APPLICATION OF FUNDS
(1) Fixed Assetsa) Gross blockb) Less : accumulated
depreciationc) Net blockd) Capital work-in- progress
(2) Investments(3) Current Assets, Loans, and
Advancesa) Inventoriesb) Sundry debtorsc) Cash and bank balancesd) Other current Assetse) Loans and advances
A
Less: Current liabilities &Provisions
a) Current Liabilitiesb) Provisions
B
Net Current Assets ( A – B)
TOTAL
12,000,000230,181,731
-9,400,000
7,167,451
177,619,240
51,919,239
2,500
7,432,62356,223,39492,912,225
-51,102,113
207,670,355
70,338,2705,833,945
76,172,215
242,181,731
9,400,000
7,167,451
258,749,182
125,700,0011,548,541
2,500
131,498,140
258,749,182
12,000,000184,038,995
0
5,919,668
115,544,177
46,732,370
2,500
761,67728,846,634
131,354,303 0
65,004,112
225,966,726
38,223,65945,516,585
83,740,244
206,038,995
5,919,668
211,958,663
68,811,807917,874
2,500
142,226,482
211,958,663
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