KSDL Profile

CUSTOMER SATISFACTION TOWARDS KSDL

1. INDUSTRY PROFILE:

Soap is one of the commodities, which have become an

indispensable part of the life of modern world. Since it is non-

durable consumer goods, there is a large market for it. The whole

soap industry is experiencing changes due to innumerable reasons

such as government relations environment and energy problems

increase in cost of raw materials.

The changing technology and ever existing desire by the

individual and the organization to produce a better product at a

more economical rate has also acted as catalyst for the dynamic

process of change.

More and more soap manufactures are trying to capture a

commanding market share by introducing and maintaining

acceptable products. The soap industry in India faces a cutthroat

competition while multinational companies dominate the market.

They are also facing severe threat from dynamic and enterprising

new entrance especially during 1991-92.

If we look back into the history of soaps & detergents.

Mankind knew about soaps nearly 2000 years back i.e. in 70 A.D.

when Mr. Elder accidentally discovered the soap, when roasted

meat over flowed on the glow in ashes. This lump like product was

soap & had foaming & cleansing character. In 1192 A.D. the first

commercial batch of soaps was made & marketed by M/s Bristol

soap market in London, from there in 1662A.D. the first patent for

making soap was taken in London. The world consumption of soap

in 1884A.D. Was said to be 2 lakhs tonnes p.a.

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HISTORY OF THE SOAP:

Soap manufacturing was started in North America.

Some American companies with well-known names were started

200 years ago. During middle age soap was made various places in

Italy, France, England & other countries. France became famous &

many small factories were established there. In India the first soap

industry was established by North West soap company in1897 at

Meerat following the Swadeshi movement. From 1905 on wards few

more factories were setup.

They are,

Mysore soap factory at Bangalore

Godrej soap at Bombay

Bengal chemicals

Tata oil mills

1930 lever brothers company

THE INDIAN SOAP INDUSTRY SCENARIO:

The Indian soap industry has long been dominated by hand full of

companies such as:

1. Hindustan levers limited.

2. Tata oil mills (taken over by HUL)

3. Godrej soaps private limited.

The Indian soap industry continued to flourish very well until 1967-

68, but began to stagnate & soon it started to recover &

experienced a short upswing in 1974. This increase in demand can

be attributed due to;

1. Growth of population.

2. Income & consumption increase.

3. Increase in urbanization.

4. Growth in degree of personal hygiene.

5. Soap manufacture has 2 classifications, organized and

unorganized sectors. KSDL comes under organized sector

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PRESENT STATUS:

Market scenario:

India is the ideal market for cleaning products. The

country’s per capita consumption of detergent powders & bars

stands at 1.6kg & soaps at543Gm. Hindustan liver, which towers

over the cleaning business, sells in all over the cleaning business

but the tiniest of Indian settlements.

The 7.4lakhs tons per annum soap market in India in crawling

along at 4%. The hope lies in raising Rupee worth, the potential for

which is high because the Indian soap market is pseudo in nature &

it is amazingly complex being segmented not only on the basis of

price benefits, but even a range of emotions within that outlining

framework.

2. COMPANY PROFILE:

A. BACKGROUND AND INCEPTION OF THE COMPANY:-

Soap is one of the commodities, which has become an

indispensable part of life of the modern fantasy world. Since it is

non-durable consumer goods, there is a large market for it. The

whole soap industry is experiencing changes due to innumerable

reasons such as Government relations, environment, toxicological

allergy problems, increase in cost of raw material etc.

Following Swadeshi movement in 1905, few factories were set

up and they were:

1. Mysore Government Soap factory at Bangalore.

2. Godrej Soaps at Bombay.

The changing technology and even existing desire by the

individuals and the organization to produce a better product at a

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mere economical rate has also acted as Catalyst for the dynamic

process of change. More and more Soap manufactures are trying to

capture a commanding market share by introducing and

maintaining acceptable products. The soap industry in India faces a

cutthroat Competition, while multinational companies dominate the

market.

THE INDIAN SOAP INDUSTRY SCENARIO: -

The Indian soap industry has been dominated by handful of

companies such as

1. Hindustan Levers Limited.

2. Tata Oil Mills (Taken over by HUL )

3. Godrej Soaps Private Limited.

4. Recent entrants include - Colgate Palmolive Ltd.,

- Proctor & Gamble Ltd.,

- Nirma Soap Works,

- Wipro Ltd.

The Indian Soaps industry continued to flourish very well until 1967-

68, but began to stagnate. Soon it started to recover and

experienced a short upswing in 1974. This increase in demand can

be attributed to:-

1. Growth of population.

2. Income and consumption increase.

3. Increase in urbanization

4. Growth in degree of personal hygiene.

Soap manufacturers are Classified as, Organized and unorganized

sector. KSDL is under organized Sector.

PROBLEMS OF SOAPS & DETERGENTS INDUSTRY:

Industry faces some problems due to increase in the cost of

raw materials. The major ingredients like soda ash, linear alkyl

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benzene and Sodium Tripoli phosphate poses number of serious

problems in terms of availability. The demand and supply gap of

vegetables oil is 1.5 to 2 Lakhs tons and is met through imports.

HISTORY:-

India is a rich land of forest; ivory, silk, sandal; precious gems

are magical charms of centuries. The most enchanting perfumes

of the world got their exotic spell with a twist of sandal. The world’s

richest sandalwood resource is from one isolated stretch of forests

land in South India that is Karnataka.

The origin of sandalwood and its oil in Karnataka, which is

used in making of Mysore sandal soaps, is well known as Fragrant

Ambassador of India & Sandalwood oil is in fact known as “Liquid

Gold”.

By the Inspiration of His Highness Maharaja of Mysore late

Jayachamarajendra Wodeyar, the trading of sandalwood logs started

which was exported to Europe and New destinations, but with

commencement of First world War India faced Severe Crisis on the

business of sandalwood.

This situation gave rise to start of an industry, which produces

value added products i.e., of Sandalwood oil. His Highness Maharaja

of Mysore created this situation as an opportunity by sowing the

seed of the Government Sandalwood Oil Factory, which is the

present KS&DL. The project was shaped with the engineering skills

and expertise of the top level. Late Sir M.Visvesvaraya, the great

Engineer who was the man behind the project.

Today’s famous Mysore sandal soaps credit goes to late Sri

Sosale Garalapuri Shastri who incorporated the process of soap

making using Sandalwood oil. He was an eminent scientist in the

field working at the Tata Institute, Bangalore. He was sent to

England to master the fine aspects of soap manufacturing.

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The Maharaja of Mysore & Diwan Sir. M.Visvesvaraya

established the Government Soap factory during the year 1918.

The factory was started as a very small unit near K.R.Circle,

Bangalore with the capacity of 100 tons P.A. In November 1918 the

Mysore sandal soap was put into the market after sincere effort and

experiments were undertaken to evolve a soap perfume blend using

sandalwood oil as the main base to manufacture toilet soap. The

factory shifted its operation to Rajajinagar industrial area, Bangalore

in July 1957, where the present plant is located. The plant occupies

an area of 39 acres (covering Soaps, Detergents and Fatty Acid

divisions), on the Bangalore – Pune Highway, easily accessible by

transport services and communication. Another sandal wood oil

division was established during the year 1944 at Shimoga, which

stopped its operations in the year 2000 for want of Natural

Sandalwood.

This factory started at a moderate scale in year 1916. The

first product was washing soap in addition to the toilet soap in the

year 1918. The toilet soap of the company was made up of sandal

wood oil.

In 1950 Government decided to expand the factory in two

stages. The first stage of expansion was done to increase the

output to 700 tons per year and was completed in the year 1952 in

the old premises.

The next stage of expansion was implemented in 1954 to

meet growing demand for Mysore sandal soap and for this purpose

Government of India sanctioned license to manufacture 1500 tons of

Soaps and 75 tons of glycerin per year. The expansion project

worth of Rs.21 lakhs includes the shifting of the factory to a newly

laid industrial suburban of Bangalore.

The factory started functioning in this new premise [i.e.,

present one] from 1st July 1957. From this year onwards till date the

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factory had never looked back, it has achieved growth and

development in production scales and profits.

The industry has 2 more divisions one at Shimoga and another

at Mysore where sandal wood oil is extracted. The Mysore division

started functioning from 1917 and only during 1984 manufacturing

of perfumed and premiere quality Agarbathies at was started. Right

from the first log of sandalwood that rolled into the boiler room in

1916, the company has been single – minded pursuit of excellence.

The project took shape with the engineering skills and expertise of

top-level team under the leadership of Sir. M.Visvesvaraya, Prof.

Watson and Dr.Sudbrough. Like this soap factory was started as a

small unit and now it has grown up to a giant size.

RENAMING: -

On 1st October 1980, the Government Soap Factory was

renamed as “Karnataka Soaps and Detergent Limited” The

Company was registered as a public limited company. Today

Company produces varieties of products in the toilet soaps,

detergent, Agarbathies and Cosmetics.

2.C. VISION,MISSION AND QUALITY POLICY

VISION STATEMENT:-

Keeping pace with globalization, global trends and the

state’s policy for using technology in every aspect of

governance.

Making available technology product and services at the

most affordable price to the people at large, in keeping

with the policy of a welfare state.

Making all out efforts to achieve reasonable profits.

Most importantly to earn the invaluable foreign

exchange, both to the state and to the country.

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MISSION STATEMENT:-

To serve the National economy.

To attain self-reliance.

To promote purity & quality products

To maintain the Brand loyalty of its customers.

To build upon the reputation of Mysore sandal soap

based on pure sandal oil.

2.C. QUALITY POLICY

AN ISO-9002 COMPANY: -

KS & DL with a tradition of excellence of over eight decades is

committed to customer delight, through total quality management

and continuous improvement through the involvement of all

employees. KS&DL has got ISO 9002 certificate.

To improve the quality management system and to facilitate

TQM in the process of soap and detergent, the management took

decision to obtain ISO-9002 by end of March 1999. Accordingly

action plan was drawn and a committee was set up for the purpose

during October 1998 with a mission statement.

The company gives initial training including conducting

employee’s awareness programme, document quality manual and

quality system procurement.

In this direction company obtained the guidance from

Consultancies, Bangalore and Bureau of Indian Standards,

Bangalore. Accordingly, company standards registered for ISO 9002

by the end of March to the Bureau of Indian Standards. Obtained the

certificate by the end of March 1999 itself.

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This is to project in the national and international market and

also to improve quality of products offered to the consumers with

the assurance of quality in the message.

The Company got itself upgraded to ISO-9001-2004, Quality

Systems in the year 2004-05.

ISO-14001:-

The company is located in the heart of the Bangalore city.

The management of the company took a decision to get the ISO-

14001 and become model to other public sector for the techniques

used and also to other Government units to spread the message of

maintenance of environment.

ISO-14001 and ISO-9001 will facilitate to improve the

corporate brands in the global market and it will help the company

to improve the profits, year after year on long-term basis. The

environment management system adopted in the company through

this motive as follows:

Conservation of energy

Conservation of Surrounding

Conservation of resources.

Equipped with latest technology and backed by full-fledged

quality control and R&D support, KS&DL is marching confidentially

ahead in the new millennium. The Company is developing new

products to meet the changing preferences of its customers.

2. D. PRODUCT PROFILE

KS&DL is the true inheritor of golden legacy of India.

Continuing the tradition of excellence for over eight decades, using

only the best East Indian grade Sandalwood oil & Sandalwood soaps

in the world. The products produced at KS&DL are the Soaps,

Detergents, Agarbathies and Sandalwood oil.

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PRODUCT RANGE FROM THE HOUSE OF K.S&D.L

a. Mysore Sandal Soap (75gm,125gm &

150gm)

b. Mysore Sandal Special Soap (75gm)

c. Mysore Sandal Baby Soap (75gm)

d. Three-In-One Gift Pack –(SJR) 3Tabs (150gm Each)

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e. Mysore Sandal Gold Soap (125gm)

f. Mysore Rose Soap (100gm)

g. Six-In-One Gift Pack- 6Tabs (150gm Each)

h. Mysore Sandal Gold sixer 6 Tabs (125gm Each)

i. Mysore Sandal Soap Bath Tablet Trio 3nos. (150gm Each)

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j. Mysore Sandal Classic Soap (75gm)

k. Jasmine Bath Soap (75gm)

l. Mysore Herbal Care Soap (100gm)

DETERGENTS:

KS&DL also manufactures high quality detergents applying the

latest spray drying technology with well balanced formulation of

active matters & other builders; they provide the ultimate washing

powder.

1. Mysore Detergent Powder (1kg/500gms)

2. Mysore Detergent bar (250gms)

3. Mysore Detergent Cake (125gms/250gms)

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AGARBATHIS

1. Mysore Sandal premium 8. Mysore sandal

2. Mysore Rose 9.Nagachampa

3. Suprabath 10.Mysore Jasmine

4. Parijata 11.Bodhisattva

5. Venkateshwar 12.Durga

6. Ayyappa 13.Alif Laila

7. Chandhana

SANDALWOOD OIL

In 5ml, 10ml, 20ml, 100ml, 500ml, 2kg, 5kg, 20kg, and 25kg

packing.

TALCUM POWDERS

1. Mysore Sandal Talc: Cooling & Healing, Fragrant freshness,

Net. Wt 20gm, 60gm, 300gm and 1kg.

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Mysore Sandal Baby Powder: Tender loving care for baby…&

Mummy. Net wt 100-400gms.

LIQUID SOAP

Wave duo liquid body wash Wave herbal wash

2. E. AREA OF OPERATION:

GLOBAL FAVOURITES FOR THEIR NATURAL GOODNESS

KS&DL has a long tradition of maintaining the highest quality

standards, right from the selection of raw materials to processing

and packaging of the end product. The reason why its products are

much in demand globally & are exported regularly to UAE,

Bahrain, /Saudi Arabia, Kuwait, Qatar, South East Asian countries as

well as North America & South America. The sandalwood oil, of

course, is much sought after by the leading perfume houses of the

world. All the toilet soaps of KS&DL are made from oils & fats of

vegetable origin & totally free from animal fat.

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Australia Duorand West Italy Singapore

Canada Nepal Mauritius Srilanka

France UAE Malaysia Saudi Arabia

Japan USA Panama South Africa

Kenya Czechoslovakia Bahrain Taiwan

Holland Germany Qatar UK

2. F. OWNERSHIP PATTERN:

“Wholly owned by Government of Karnataka”.

2.G. COMPETITORS INFORMATION AND THEIR

MARKET SHARE:

HUL 70%

Godrej 4%

Procter & gamble 10%

KSDL 11%

Others 5%

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PRESENT STATUS:

1. The company has entered into shampoo, dish wash, detergent

bar & room refresher.

2. The company is striving to develop new perfumes for soaps

detergents, agarbathies & shampoo.

3. The company wants to improve the existing products in terms

of quality.

2. H. INFRASTRUCTURAL FACILITIES:

1. Canteen facility

2. Library

3. Car stand 4.Waiting room

2. I. ACHIEVEMENTS/AWARD:

1. Government of Karnataka Dept of Industries and commerce

2. State Export Promotion Advisory Board. “EXPORT AWARD”

1974-75

3. Detergent Plant

4. M/s Chemical Bombay have given 1st price for the year 1980-

81

5. Geographical Indication GI-2005

6. ISO 9001-2000 in the year 1999

7. ISO 14001-2004 in the year 2000

2. J. WORK FLOW MODEL

SILOS

(Silos are closed chambers)

Soaps Noodles

Container Mixer

Simplex Plodder

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It becomes NOODLES

MILLING

It becomes soap ribbons

Duplex plodder

Cutting Machine

Cakes are led to

Stamping Machine

Wrapping machine

Led through the conveyor belt

2. K. FUTURE GROWTH AND PROSPECTUS:

Introduction of anti-bacteria, herbal transparent soap, made

out of 33 essential oil based perfume, Aloe Vera, Vitamin-E

etc as additive and suitable for all types of skin and all

seasons.

Improvement in existing products Mysore Sandal classic

improved moisturizers & skin conditions.

Introduction of sandalwood powder in 50gms, 100gms to

meet the growing demand for religious purpose.

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Introduction of new higher powered detergent powder for

institutional sales in bulk packaging.

To attain market leadership.

Introduction of new trade schemes to increase sales.

Aggressive advertisement and publicity as part of sales

promotion.

Reduction in distribution expenses.

Cost-reduction in all areas.

Instant decision making in certain procurement activities.

Timely introduction and implementation of market driven

decisions.

Ensuring effective internal control.

3. McKinsey’s 7S Framework:

According to Waterman, organization change is not simply a

matter of structure, although structure is significant variable in the

management of change. Again it is also not a simple relationship

between strategy and structure, although strategy is also a critical

aspect. In their view effective organizational change may be

understood to be a complex relationship between strategy,

structure, system, style, skills & shared values. The first three

elements-strategy, structure &system are considered the

“hardware” of success. The next four – style skills, staff, and shared

values are called the “software”. The complex relationship is

diagrammatically presented below;

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A. STRUCTURE OF ORGANISATION

BASIS OF DEPARTMENTATION

KS&DL is a manufacturing concern of moderately large size. We

can see here function wise departmentation. It facilitates utilization

of man power and it is a simple, economical and reasonable

organization pattern

LEVEL OF ORGANITATION

The organization of KS&DL consists of 4 levels

1 Top level consisting of BOD’s and MD

2 Second level consisting of Directors of Finance &

Special officers

3 Third level consisting of senior managers , deputy

managers and officers

4 Fourth level consisting of clerks, Assistants and

Attenders

ORGANIZATION CHART OF KS&DL

KS&DL is Function type of organization. Under this type of

organization men with special abilities in a specialized function are

employed. The hierarchy is represented as fallows

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B SKILLS:

The term “skills” includes those characteristics, which people use

to describe a company. Organization have strengths in a number of

area but their key strengths are dominant skills are few. These are

developed over a period of time of the result of the interaction of a

number of factors performing certain tasks successfully over a

period of time, the kind of people in the organization, the top

management style, structure, the management systems, the

external environmental influence etc. Hence when organization

makes a strategic shift it becomes necessary to consciously build

new skills.

Employee’s skills in an organization will be unique, this may be

due to their experience in the place of work, and the similarity may

also due to influence of the similar culture.

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However every person according to his traits possesses his

own talents and special characters. This cannot be generalized skill

among them.

The employees of KS&DL have different skill, which are

relevant for their work. As it is common in big organizations, he also

controversies between departments which can be solved by

discussions and by conducting some interactive programs.

C STYLE:

Decision-making is centralized with the head office. Authority

is given to unit in-charge to take decision in day-to-day minor

matters & other urgent matters.

Decision-making depends on the authority & responsibility

conferred on each individual & thus it’s distributed based on

designation & position held.

In important matters, meetings are held to seek opinions of top

management & various department manager & the decisions are

taken & implemented.

Decision-making is co-ordinate & done with wide

consultations of top management of department manager’s

consultation which gives best possible gains.

D STRATEGY:

Strategic planning is about asking questions, more than

attempting to answer them. Strategy formulation entails a search

for a different frame of reference. It is the quest for a new business

paradigm. There are two types of paradigms that apply to

management, namely the business and the organizational or

managerial paradigms. The business paradigms define a company’s

position in the market place with respect to customers, technology

and products.

Strategy is a choice of direction and action; the company

adopts to achieve its objectives in a competitive situation. Any

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statements on overall of functional strategy that the company may

wish to share are:

Improvement in the existing products.

Their future plans include launching of new products.

The cost control exercise is in consolidation.

Introduction of cost effective substitutes without

compromising on quality

Development of new perfumes, soaps detergents, Agarbathies,

creams and shampoos.

E SYSTEM:

A. Accounting System:

Financial statements are prepared under the historical cost

convention on an accrual basis and comply with the accounting

standards refer to sec 211 (3c) of the companies Act 1956.

B. Costing System:

Process costing.

C. Inventory Control System:

ABC analysis for stock control.

1. FIFO method for issuing materials.

2. Computerized accounting system for stores.

D. Remuneration System:

1. Time rate system is followed to employees.

2. Government fixes the remuneration to executives.

E. Performance Appraisal System:

Confidential report is prepared by heads of various

departments for systematic judgment of the subordinate by

authority to assess the standard of work & overall performance.

F STAFF:

As any employer, KS&DL follow ethical employment

standards wherever it operates with a goal in mind company

guarantees.

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1. To fulfill its entire legal obligation in terms of employment

payments and benefits practices.

2. Adequate and timely training for every one for the job for which

they are employed.

3. Career advancement related to performance and experience.

G SHARED VALUES:

Values:

Values refer to the institutional standards of behavior that

strengthen commitment to the vision, and guide strategy

formulation and purposive action. The core values are shaped

around the belief that enterprises exist to serve society. In terms of

this belief, profit is a means rather than an end in itself a

compensation to owners of capital linked to the effectiveness of

contribution to society and the essential ingredient to sustain such

enlarged societal contribution.

Thus company has embraced an extended role of trusteeship

that reaches beyond the assets reflected in the balance sheet to

encompass societal assets. An unwavering commitment to integrity,

ethical conduct, meritocracy, teamwork and abiding concern for

stakeholders are at the heart of your company’s value system.

Customer satisfaction

Committed to total quality.

Cost and time-consciousness.

Innovation and creativity.

Trust and team spirit.

Respect for individuals.

Integrity health and ethics.

4. SWOT ANALYSIS

STRENGTHS:

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An ISO 14001 company, which commits to reserve the

natural environment in the production of its quality products to the

satisfaction of its customers.

The factory is located in the heart of the city & has all

infrastructure facilities. They have quick movement of raw

materials & finished products. Due to its proximity,

habitation movement of men and material are easy.

A very good dealership network, which ensures that the

products reach every loop and corner.

A very little competition for its major products sandal

soap.

An ISO 9002 certified company has its own brand image.

Diversified product range keeps the company stable.

Abundant availability of raw materials.

Two sandalwood oil factories in Shimoga and Mysore,

which produce 75% of world’s sandalwood oil.

WEAKNESS:

Slow growth rate 6.2 growths over 40 years against the

product of 80%.

High oriented cause due to excessive Labour force.

Low turn over resulting in low profits.

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Defective marketing strategy lacks effective advertising and

publicity. 23

Needs updating with times in terms of plant and machinery.

R&D is not effective in as much as it has not made any brake

through in new products.

The large proportion of the target area is upper middle class

and upper class people, it has very few offer to lower middle

class.

It has only 8% of the total detergent market share.

Due to lack of direct sales, debts with many dealers turning

bad.

Unskilled labor coupled with excess labor hampers profitability.

OPPORTUNITIES:

1. The toilet soap and the detergents market is an over

expanding industry and a major company likes KS& DL with

its manufacturing expertise can call the shots if it reaches

peak manufacturing capacity.

2. Good export market should tap foreign market vigorously.

3. At present it has Good raw material sources to enhance

production.

THREATS:

1. Competition from other global leaders like HUL.

2. Government interference may reduce growth potential.

3. As the company depends on forests for its main raw materials

makes the company to find chemical alternative to

sandalwood.

4. To protect the financial interest of the company.

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ANALYSIS OF FINANCIAL STATEMENT.

PROFIT AND LOSS ACCOUNT(RS in Lakhs)

PARTICULARS AMOUNT AMOUNT AMOUNT AMOUNT

2006-07 2007-08 2008-09 2009-10

INCOME

Sales 1,04,43,74,470 1,28,64,62,008 1533703531 1,647,774,737

Other income 1,90,04,300 2,09,85,305 60623797 22,288,309

1,06,33,78,770 1,30,74,47,313 1594327328 167,063,047

Increase/(-) Decrease in stock

4,73,09,343 2,64,66,726 70374213 53,286,174

1,11,06,88,113 1,28,09,80,587 1,66,4701,541 1,723,349,221

EXPENDITURE

Materials Consumed(Include trading items)

50,70,94,583 54,13,33,115 801928343 775,383,439

Other Expenditure 55,19,82,573 61,35,25,868 734442910 799,799,905

Depreciation 36,05,016 35,77,430 3969038 4,982,474

1,06,26,82,573 1,15,85,36,413 1,540,340,291 1,580,165,818

Operating Profit /Loss

4,80,05,540 12,24,44,174 124,361,250 143,183,402

Less: Interest and Finance Charges

46,48,394 45,08,734 72,76,261 8,297,546

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PROFIT BEFORE TAX

4,33,57,146 11,79,35,440 11,70,89,988 134,885,857

Less: Provision for Taxation

(i) Current Tax 52,00,000 1,80,00,000 1,85,00,000 48,000,000

(ii) Fringe Benefit Tax

23,01,452 70,98,690 21,28,828

Dividend tax 45,96,941 2,03,58,318

PROFIT AFTER TAX

3,58,55,694 8,82,39,809 11,68,14,478 93,112,149

Prior Period Income /(-)Expenditure

66,40,866 1,40,78,609 1,441,082

Deferred tax asset 3,21,46,548 - -

Proposed dividend 2,70,48,785 - -

Tax of earlier year 2,20,99,794 1,37,30,643 - -

2,03,96,797 12,17,55,748 13,08,93,087 75,760,017

Profit/Loss brought forward previous year

(53,26,504) 15070293 13,68,26,041 267,719,129

Profit /Loss Carried to Balance Sheet

1,50,70,293 13,68,26,041 267,719,129 343,479,146

OBSERVATION

The above profit & loss account shows that profit & loss for the year 2006-

2010 of the company KS&DL.

By analyzing the above profit & loss account we can come to a conclusion that the company was under loss for the year 2006, until they earned the profit in the year 2007 onwards.

INFERANCE:

The financial statements show that from the year 2006-2010 the

company has paid the excise duty for its imports hence it is interpreted that the

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company has started to import. This has in turn let to decrease in profit level of the

company. Since it is from the year 2006, due to the entry in importing for the first

time, the company has increased loss in that particular year. In 2010 the profits has

much increased against preceding years which indicates good position.

BALANCE SHEET as at 31 st march (amount in crores)

Sources of Funds 2006 2007 2008 2009 2010

Shareholders Fund

Capital 31.82 31.82 31.82 31.82 31.82

Reserves and Surplus - 1.51 13.68 26.77 34.34

Loan Funds Secured

Secured - 1.66 1.04 10.72 8.09

Unsecured 19.99 13.00 9.00 8.35 8.35

Deferred Tax Liability (Net) - - 3.21 5.25 -

Total Funds Employed 51.81 47.99 61.96 82.91 82.52

Application of Funds

1. Fixed Assets

a) Gross Block 30.28 29.24 29.61 30.96 32.72

Less Depreciation 24.24 23.35 23.71 23.98 24.14

b) Net Block 6.03 5.89 5.91 6.98 8.59

Capital Work in Progress - - - - -

Total 6.03 5.89 5.91 6.98 8.59

Current Assets Loans and Advances

a. Inventories 34.12 35.09 29.60 40.75 51.61

b. Sundry Debtors 6.88 8.09 14.63 16.35 17.27

c. Cash and Bank Balance 19.57 31.23 33.43 25.51 28.53

d. Loans and Advances 9.44 7.25 10.49 21.53 21.40

e. Investment in gratuity

fund

- - - 5.00 5.00

Total 70.02 81.66 88.17 109.14 123.10

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LESS : Current Liabilities and Provision

I. Current Liabilities 17.07 29.26 30.88 24.67 29.23

II. Provisions 9.82 11.59 16.67 20.50 26.10

Net Current Assets (6) Less (7) 43.13 40.81 40.62 63.98 67.81

Miscellaneous Expenditure 2.12 1.29 2.80 1.64 -

Total Assets (Net) 51.81 47.99 61.96 82.91 82.53

5.6.LEARNING EXPERIENCE

The learning experience gained by me during the in-plant

training was very much practical oriented. Mostly all the concepts

and theories, which I studied in the class, are applicable practically.

The overall study of the organization reveals that the company

has grown tremendously since its incorporation from 1918, now it

has independent units for manufacturing sandalwood oils, toilet

soaps, washing soaps, detergents, cosmetics, incense sticks and

industrial products. The initially named Government Soap Factory

was renamed as Karnataka Soaps and Detergents Ltd in 1st October

1980.

Its trademark is “Sharabha”, the slogan stands as “Natural

products with exotic fragrance”. The company is a leading

sandalwood soap Manufacturer in the country. Even though they

have demand for their products in both domestic as well as

international market, They are not able to establish themselves as

market leaders due to various reasons such as extensive work force,

non-utilization of installed capacities of manufacturing, lack of

proper distribution network, lack of expenditure in the areas of

advertisements and publicity, competitions of various soaps and

detergents and lack of timely decisions.

The company has an effective human resources department

where in the employees are given excellent packages, incentives

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and extensive care is taken by providing facilities such as canteen,

medical facilities, motivation classes and extracurricular activities.

I had a great time working on the project, as it gives insights

into the working environment of an organization. The training has

exposed me to many facts of an organization and also helped me to

gain practical knowledge, which will go a long way in the horizon of

our career. I became more aware of the soap industry and the role

played by KSDL.

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Documents

KSDL Profile