Internship Report
Internship Report
Internship Report
LIMITED, ATHANI
Submitted by
ROSHNI ANIL
REG NO–NIE18MBA15
DEPARTMENT OF MBA
NIRMALA COLLEGE OF MANAGEMENT
STUDIES,KUNNAPPILY, MELOOR
JUNE 2018
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DECLARATION
I, ROSHNI ANIL hereby declare that this report ofthe “KERALA AGRO
MACHINERY CORPORATION LTD,ATHANI”, is an original report
prepared by me after detailed survey, carful interviews, necessary references
and consultations during my period of study at “NIRMALA COLLEGE OF
MANAGEMENT STUDIES“under the guidance and supervision of
ASWATHY SUNILRAJ Management Faculty is genuine. It has been not
submitted elsewhere for any other degree.
Date:
Place : MELOOR
ACKNOWLEDGEMENT
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First of all ,I am thankful to ‘God’ the almighty ,for faith bestod on me and who
has kept me safely at every step of my way.
I express my sincere thanks to Mr.M.C.Vijaykumar, HR Manager KERALA
AGRO MACHINERY CORPORATION LTD, ATHANI,for giving me the
permission to do the Internship at the prestigious Institute and also all kinds of
support and guidance, in spite of her busy schedule.
I am deeply indebted and grateful to all the departments heads, executives and
other employees of KERALA AGRO MACHINERY CORPORATION
,LTD,ATHANI, who co-orporated during my study.
Throughout my career in this college, the role of our principal and centre Co-
ordinated ,NIRMALA COLLEGE OF MANAGEMENT STUDIES, was much
significant ,my heartfelt gratitude to him for his patience of inspiring and
encouragement and help in the pursuit of my studies.
I articulate the feelings of obligation for the splendid support extended by
Mr.Antony Kolenchery(Guide) Management Faculty Nirmala college of
management studies, Meloor, for without his meticulous and industrial
guidance this study would not have served its very purpose.
Finally, l would like to express my sincere thanks and gratitude to my Parents,
Friends and Other faculty members of Nirmala college of management studies,
Meloor and all my well-wishers who have provided all necessary support to
make this internship a success.
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TABLE OF CONTENTS
CHAPTER TITLE PAGE NO.
Cover page
Company certificate
Declaration
Acknowledgement
Table of content
List of tables
List of figures
CHAPTER 1 INTRODUCTION
1.1 Objectives of the internship
1.2 Industry analysis
CHAPTER 2 ORGANISATIONAL
ANALYSIS
2.1 Industry profile
2.2 Mission, vision and values
2.3 Product or services of the
company
2.4 Financial-market share,
financial performance
2.5 SWOT Analysis
LIST OF TABLES
SL. NO. NAME OF TABLE PAGE NO.
1
2
3
4
5
4
LIST OF FIGURES
SL. NO. NAME OF FIGURE PAGE NO.
1
2
3
4
5
6
7
8
9
10
11
12
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CHAPTER 1
INTRODUCTION OF THE STUDY
. The internship study has a period of two month. Here the period is from 01.07.2019 to
30.08.2019.KAMCO ltd granted permission to do the internship program for an individual
from each college. This internship is aimed at creating an opportunity for me to observe,
learn, assimilate, and analyses the objectives and vision of the Organization and functioning
of its various departments. This would enable me to get a practical and real time feel of
various aspects concerned with the organization and to relate to the concepts and studied in
the class room. This exercise would enable the future managers to face the challenges lying
ahead
After achieving Independence in 1947, India found herself to be badly lacking the means to
meet demand for her vast food population. It was during this time KAIC ( Kerala Agro
Industries Corporation) in the year 1972 introduced power driven machines to work in the
agricultural field In the same year KAIC in collaboration with KUBOTA at Athani near by
Angamaly to produce tillers as a subsidiary to KAIC. It was fully government owned
company. Since the introduction of the plant, it was performing well and we could proudly
say that it is one of the best governments owned company making profit for long period of
time. Now it supplies the quality tillers and reapers to the entire domestic and international
markets.
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Kerala Agro Machinery Corporation Ltd. (KAMCO) was established in the year 1973 as a
wholly owned subsidiary of Kerala Agro Industries Corporation Ltd. (KAIC), Trivandrum,
for manufacture of agricultural machinery specifically Power Tillers and Diesel Engines.
Subsequently KAMCO became a separate Government of Kerala undertaking in 1986.Paid
up capital is Rs.161 lakh and the Present Net Worth of the Company is Rs.6014.14 lakh.
Total work force at present is 567 Certified for ISO 9001 - 2000 version from September
2002
At present, KAMCO has four units located at Athani and Kalamassery in Ernakulam District,
at Kanjikode in Palakkad District, and at Mala, in Trichur district. With the present work
force KAMCO can produce 15000 Power Tillers & 5000 Power Reapers annum.
Primary objective:-
The primary objective of the study is to have a brief knowledge about the functioning
of the organisation.
Secondary objective:-
To know the organisation structure of the company
To know about various departments and their activities
To evaluate the growth prospects of the company
To conduct an objective evaluation of the company
To suggest some measures for improving the performance of an organisation
To know the functional position of the company
The Kerala Agro Machinery Corporation Ltd popularly known as ‘KAMCO’ was
established in the year 1973 as a subsidiary of Kerala Agro Industries Corporation Ltd
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Athani, 25km north of Kochi. It all began in 1958, when Dr. Rajendra Prasad, the President
of India was presented with a ‘Kubota Power Tiller’ by the Japanese (M/S. Kubota Ltd,
Japan, the world’s leading manufacture of power Tiller and other agriculture machinery).
agreement with M/S.Kubota Limited, Japan in February 1972.On 15.11.1972, the Kerala
Industrial and Technical Consultancy Organisation Limited (KITCO) were entrusted with the
work of Rs.2 crores as a subsidiary of M/S.KAIC Ltd, which held the entire paid up capital
shares in KAMCO. Even though the company was formed as a subsidiary of KAIC Ltd,
subsequently the company became a fully owned government company by transferring the
KAMCO has completed its 33 years and is running on profit for the last 22 years
continuously increasing its production, turnover and profit year after year.
unit in Palakkad dist. and Mala unit in Trichur dist. The Kalamassery unit
manufactures diesel engines, Kanjikode unit produce power tiller and the Mala
1. A major milestone for the company was the award of the International
coveted certificate and the only public sector undertaking who has got ISO
9002 certification justify in the high standards of the products for their three
units.
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3. From 15-03-2002 onwards KAMCO became an ISO 9001- 2000 registered
all respect. KAMCO Ltd products having heavy demand in the market, they are unable to
meet the requirement of the customers. The company is functioning in a cordial and happy
atmosphere. The officers and staff in the company are very co-operative and friendly moving.
The Cochin Port and Cochin Aerodrome are situated very near to the company and this will
also help to boost the business. The company is running a stabilised canteen for their
government. Present status of KAMCO is synonymous with service to the small and marginal
farmers of the country. KAMCO through their precision and quality is revolutionizing the
small and marginal holdings throughout the country. Today KAMCO’S products are widely
used and demanded in all over India, enjoying over 60% of the market share at national level.
The company with its four plants at Athani, Kalamassery, Kanjikode and Mala unit is
confidently meeting the demand for KAMCO products in India and abroad. The main
markets for the products are at West Bengal, Assam, Tamil Nadu, Tripura, Kerala, Megalaya,
Bihar, Gujarat and Manipur. Presently KAMCO have 45 dealers all over India
. FUTURE OF KAMCO
KAMCO is looking proudly ahead into more promising future. Future will
also see KAMCO‘s diversification products in the farm mechanisation field contributing
significantly in food production and predicting itself to the cause of self reliance and social
8
Today KAMCO is a multi-product, multi-location company with two production units at
Ernakulam dist., one production unit at Palakkad dist. And one production unit at Thrissur
dist. KAMCO has a number of diversification plans in the anvil. It’s proposed to set up
research development activities which will hopefully help it to develop new products in the
future and live up to its promise, that its products will be “A boom for the farmer and again
for the nation”. The quality policy of KAMCO is “Total customer satisfaction through quality
CORPORATE GOVERNANCE
Being a non-listed GOVT. Company, provisions of the company’s Act 1956 with
Athani, Palakkad and Mala units of the company have installed effluent treatment
systems designed by the LBS centre for science and Technology and approved by State
Pollution Control Board. The all new engines will reduce pollution and it also reduces the
Athani, Palakkad and Kalamassery units of the company is working with ISO 9001-2000
version certification.
INDUSTRIAL RELATIONS
The industrial relation in the KAMCO is cordial which forms the basis for sustained growth
of the organisation.
QUALITY OF PRODUCTS
The company enjoys the position of premier manufacture in the field. The products
manufactured are indigenized and there is no imported content in any of the items. The
machines have acquired a reputation for quality and reliability. KAMCO is an ISO 9001
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organisation with the aim of providing quality products at reasonable price to the satisfaction
of customers. The company enjoys all India market through a network of about 45 dedicated
dealers. Products are sold on premium at several places. They have acquired a brand
preference because of the high quality and reliability associated with machineries.
Total customer satisfaction through quality products and service with improved
technology and employee participation. We comply with the requirements of the customers
and the applicable statutory regulatory requirements. The effectiveness of the established
CHAPTER 2
ORGANISATIONAL ANALYSIS
Organization Structure
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DEPARTMENTS IN KAMCO
• Marketing Department
• Finance Department
• Human Resource Department
• Materials Department
• Purchase Department
• Stores Department
• Quality Assurance Department
• Production Department
• Maintenance Department
• Research Development Department
• System Department
1. MARKETING DEPARTMENT
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MANAGING DIRECTOR
MARKETING MANAGER
REGIONAL MANAGER
DGM (Marketing)
Manager (Marketing)
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5. Preparing of MIS reports
company. Surviving from a lot of difficulties KAMCO became No:1 brand in the agricultural
machinery market. Due to globalization KAMCO products have to compete with the
International products. The products from China is a major threat for the company because if
it’s lower price. But KAMCO is not ready to compromise with the quality of its products for
reducing their price. This marketing strategy won the target market. Even after facing all the
challenges of these competitors the marketing department could play a better role in
In the previous year company sold more than 7600 units. Considering the Indian
market 60% of the market share is in the hands of KAMCO. kamco could achieve this by
due to Globalisation, Foreign countries like China and Korea could introduce their products
in Indian markets.Their products are very cheep. But interms of quality, KAMCO is first.
4.2.1 competitors
In India VST, Bangalore is the major competitor of KAMCO firms from. Japan, Korea
and china are also competing with KAMCO in the same market.
KAMCO’s Power Reaper has been exported to Iran and Srilanka recently. The export
quantity is not a huge on but still they getting orders from those countries. These machines
4.2.3 Dealers
Sales of the products are made only through dealers. In each state there are 2 dealers. One is
govt. institution and other is a Pvt firm. The company has 45 dealers all over India. New
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dealers are appointed to cover selected districts in Tamil Nadu, Karnataka, Maharastra,
Orissa and Andra Pradesh and in the other states where the company has dealerships. The
dealers target is depend upon the area. If a dealer exceeds their target they get incentives
depending upon the excess quantity sold through them. The transporting facilities are
provided by KAMCO itself. The sales are made against cash advances except in few cases; it
is made against bank guarantee if the payment period does not exceed 30 days.
1. West Bengal
2. Assam
3. Tripura
4. Meghalaya
In the International market the sales promotion of the company is only through website. In
India all the state govt.’s have their own dealerships to sell the products. The company gives
dealerships to the private parties as well company’s main product is power Tiller. Company
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has invented a new engine, which is a diesel engine with direct injection. For the sales
promotion of this engine company selling the KAMCO Super D1 Power Tiller with the same
Advertising is also a part of sales promotion. In every budget company allocate nearly 50
lakhs for advertising. Company also provides some financial help to the dealers for
advertisements.
Major markets
Tillers - Kerala, Tamil Nadu, West Bengal & North Eastern States
2. FINANCE DEPARTMENT
15
MANAGING DIRECTOR
DEPUTYMANAGER SUPERINTENDENT
(COSTING)
ACCOUNTANT
SUPERINTENDENT
COSTING
ACCOUNTANT
DGM (Finance)
Manager (Cost/Audit)
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3. Internal audit of various activities and submission of periodical internal audit
report.
6. Treasury functions
The finance department deals with the procurement and management of funds. This
department controls the receipts and payments of each and every activity for all the divisions.
In KAMCO ,finance department plays a major role because in public sector only very few
companies are earning profit .KAMCO have more than one unit established with their own
fund. Surprising thing is that KAMCO is giving dividend and making profit for 22 years. The
surplus money is invested in the treasury and gets an interest of 7-8% from the treasury .The
2. Management of receipts
3. Management of payments
4. Auditing
5. Costing
6. Statutory transaction
The annual budget of the company is prepared both for the capital and
departments. The request of the department are analysed only after consulting with
various departmental heads and corporate divisional management group and finalised
only on the basis of disposition of funds. The budget review is carried out half yearly.
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If some changes are required the details are submitted to management/board for the
2. Management of receipts
Payments from dealers /customers are recived only through marketing department. They
keep proper receipts customer wise and dealer wise. If there is an outstanding dept it must be
informed to the marketing department once in a month. Insurance, freight outward, bank
negotiation etc are accounted and maintained to arrive at the cost of sale.
3. Management of payment
due dates. All the payments are supported by approved vouchers. Payments are passed
mainly on the basis of IGRR. Advance payments are settled with in a time of 45 days.
Non receipts/delayed receipts extra is brought to the notice of store for remedial
4. Auditing
takes care for the “CARD” requirements of companies act. It act as a “WATCH DOG”
for an entire organization. The main function of department is to ensure that policy
5. Costing
Costing reports are maintained as per the cost accounting rules. They mainly
subjected to cost audit ordered by company law board. Costing department also advice
management and department which are the potential areas of cost reduction. Mainly costing
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departments analyses cost of production on an yearly basis. Costing department advice
6. Statutory transactions
Sales tax/income tax/TDS certificate/C- form/form-18 etc are issued are properly
accounted and settlements are made at the appropriate time Salaries and other
payments, remittance and recovery etc in the case of employees are done in a time.
1. Cash management
2. Bill Processing
3. Bank receipts
4. Bank payments
organisation. It means that KAMCO have more than one unit or their own fund
without any external funds. KAMCO has no loaned fund and hence the finance charge
is nil.KAMCO has fixed deposits of about 20 crores, which earns interest to the
company. Company raises the working capital with the help of the customer advances
and fixed assets. KAMCO is paying dividend ranging from 10-30% for the last 15
years without any fail.KAMCO’s finance department deals with the procurement and
management of funds. This department controls the overall financial transaction of the
company. It controls the entire receipts and payment of all divisions. KAMCO is
running on profit for the last 23 years. It is a unique feature of KAMCO. No other
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Finance department concentrates more on the cycle of flow of funds ie.,
inflow and outflow of funds and it also ensures that whether there is appropriate
volume of funds needed for efficient business transactions. It also takes great care in
3) Federal Bank
4) Canara bank
MANAGING DIRECTOR
MANAGER
PERSONNEL SECRETARY
DEPUTY MANAGER
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A good Human Resource Department is considered to be one of the greatest assets of the
organisation. Besides welfare , it looks after discipline, IR, training and development,
the individuals to attain maximum development. The total employees strength of KAMCO is
400.
KAMCO has been running on profit for the past 22years.Behind these achievements,
there lies the co-operation and hardworking mentality of its employees. Without these
dedicated employees, KAMCO would have never reached the peak of success and
1. Permanent
2. Probationers
3. Temporary
4. Trainees
5. Apprentices
LEAVE
2. Casual Leave
3. Sick Leave (for those who are not covered under the ESI scheme)
5. Maternity Leave will be granted as per the provisions of the Maternity Benefit Act to
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The administration of leave will be done as provided under the long-term
settlements between the management and the workmen in force from time to time.
The Human Resource Department of KAMCO is concerned with the recruitment &
selection, training and development, promotion, welfare of workers and cultural activities.
1. PSC Recruitment
2. Company Recruitment
Recruitment
For the posts like Accountants, Office Staffs, Typists, Stenographers etc the people
are hired through PSC recruitment. Executive and Technical post are filled through Company
recruitment. Employment Exchange forwards a list of candidates for the required posts in the
unit on their notification to the District Employment Officer, Ernakulam. Vacancies are
advertised in major news papers or notified to the Employment Exchange in accordance with
the Govt. rules. There is no discrimination based on colour , religion, race etc. Appointments
are purely based on merit. The Dy. Manager is in charge of Recruitment and Selection,
Selection
After obtaining applications, initial screening is done on the basis of the specifications
given for the job. Short listed candidates considered matching the profile, go through the
selection process. The selection process consists of written test, group discussion and
interview.
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4.3.3 Training and Development
Awareness training or orientation training is given to the new employees for a period
of one week or one month. After this training, orientation report will be collected from each
department. After analysing this orientation report they will give placement as a trainee under
For the workers, Workers Education Programme is conducted under the supervision of the
workers education centre. For this purpose, a 2-3 months training classes are provided to the
trade union leaders of the organisation who act as the workers teachers. After attending the
training programme, conducted at the workers education centre, they conduct classes to all
For the officers at the top level, middle level and supervisory level, Management
Development Programmes are conducted. Here, training is provided on a contract basis for 2-
3 days by the faculty from different management institutes like Kerala State Productivity
Council, Centre for Management Development, Indian Institute of Management etc. ISO
awareness training classes are also conducted; the subjects handled in these classes are
For all the employees from the lower level to assistant engineers, the initial 2 years is
their training period for which they get the consolidated pay. Apart from these, a fifteen days
computer awareness training program is conducted with the changing techniques at regular
intervals.
HRD Activity
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The company gives cardinal importance to HRD activities. Company follows a pre-
planned trained calendar covering all areas and the training is imparted with the help of
further improvement.
Promotion
As per the promotion policy of KAMCO, an employee will be eligible for promotion if
he has served in a particular post for at least 3 years, or he will be given promotion when the
vacancy occurs. Another aspect is Grade promotion, ie, promotions are based on grades of
employees. In worker category there will be a grade change after a period of 5 years.
G9 – Asst. Manager
G11 – Manager
and operators/mechanics respectively. Transfers are mainly for officers only. For that MD is
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4.3.6 Wages and Performance Appraisal
Wages of the workers are settled for 4 years. It is mainly a long term
settlement. Salary settlement is based on the Kerala Government Employee Salary of Pay.
Performance Appraisal is conducted once in a year fir officers and for workers, it is
conducted when grades are given. There is a prescribed form for conducting Performance
Appraisal.
Statutory
1. ESI
2. Pf
3. Gratuity
4. Canteen
5. Restroom
6. Light
7. Ventilation
Non Statutory
1. Conveyance facility
2. Allowances
3. Incentives
4. Loan Facility
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Welfare Programmes can be classified in 6 categories. They are:-
case of emergency. ex- Goggles, Draught relief fund, funeral expenses etc.
2. Work Security :- It refers to items of support given by the company for immediate
protective element while performing a job. These benefits are given individually, section
3. Health care facilities :- It involves canteen and medical facilities. Example – ESI,
4. Well being and Motivation :- It is aimed at developing a sense of loyalty and boosting
6. Training and education :- It helps the employees to perform better in work place and
attain self actualisation. It includes expert training expenses and counselling charges.
7. Cool drinking water, Welfare officer, washing allowances, Occupational safety, first aid
1. Attendance bonus: For no absence during a month 3 days wages is given. For half day, 1
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3. Missed meal allowance: Rs 18 given to security staff coming for 3 rd shift i.e. 12 am to 8
painting/phosphate plant.
6. Conveyance allowance for purchasing cycle, scooter, cars, loans are given to employees
above Deputy Manager grade. For minimum 5 years of experience is required to avail car
7. Employees are given festival allowances of Rs 5000/- ever year in connection with onam,
8. Transport subsidy of Rs 70/- given to all employees. KAMCO is not having vehicles for
transportation. Second shift employees are provided with vehicles on contract basis and
subsidized coupons.
9. Medical check-up:- For selected employer in the technical department they provide
10. First aid during the work, if any accident occurs first aid will be provided to workers.
11. The other allowances are cash handling allowances, house rent allowances, overtime
KAMCO. It provides healthy and hygienic food at subsidised rates to the workers and
All workmen are employed on monthly wages and will be paid on a monthly
basis.
4.3.9 Attendance:
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Every workman shall be given an attendance card containing his name,
provided with an identity card containing his stamp size photo, name, number, date
of joining, etc.
4.3.10 Incentive:
employees, which constitute quarter of the pay packet. It aims at increased output,
productivity and utilisation of resources. This scheme covers all the permanent
employees.
1) Direct incentives
3) Indirect incentives
Shift Timing:
7 am to 3 pm - 1st shift
3 pm to 11 pm – 2nd shift
9 am to 5 pm – General shift
8 am to 4 pm - 1st shift
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4 pm to 12 am – 2nd shift
12 am to 8 am – 3rd shift
MATERIALS DEPARTMENT
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Figure1.4
It deals with the Purchase of materials, which include purchase planning and selection of
vendor
Functions:
1. Purchase planning
In purchase planning first of all, based on production target annual budget is prepared.
After this, worksheet is prepared.
Based on worksheet, purchase proposal is f purchase proposal is for more than 1
lakhs, signature of managing director should be made on it. If it is more than 75000,
29
purchase committee should be signed on it .The purchase and DGM finance. Ifthe
amount is more than 35000 the signature of senior manager is there.
2. Selections of Vendors
• The registration Form is issued to the supplier for filling up the details
• These details are preceded and approved, to proceed further by Vendor
development committee.
• Technical personnel designated by HOD assess premises of the supplier.
• The personnel who visit the premises fill up the vendor evaluation report
• After taking decision on the capability of the vendor based on vendor evaluation
report they requested to supply samples for approval.
• Then the samples are submitted to the Quality Assurance department at head
office and based on their recommendations regarding samples, decision is taken
on ordering on them.
• They are registered as vendors by the purchase or materials department at head
office. As vendors by the purchase or materials department at head office.
• The first purchase order is released on trial basis for small quantity. After
satisfactory supply of trial order, they are included in the approved vendor list and
regular purchase order is released depending on requirement of materials.
• The head of materials department approves the vendor list.
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PURCHASE AND STORES DEPARTMENT
MANAGING DIRECTOR
In KAMCO, the purchasing and stores department works together. But the
manager in charge is different for both. All the functions of these departments, comes
under one roof.
The stores department takes care of all the inflow and outflow of materials
used for production processes. Senior Manager of materials is in charge of stores
department. Purchasing department purchases the products from their vendors based
on details of the required quantity, given by the production department. The company
has around 220 qualified vendors. The vendors are pre-qualified regarding their
registration, turnover, capacity etc. Purchase manager is in charge of purchase
department.
1. Purchase planning
2. Price refixation
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3. Vendor development
items
5. Periodical reporting
units of KAMCO give their material requirements to the Head Office (Athani unit)
and the head office purchases the materials for all the other 3 units.
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Procedure:
First of all, the production department prepares a budget based on the raw
material requirement. The budget contains the details regarding the raw material
needed such as quantity, amount, name of suppliers etc. All the other departments also
prepares budget based on the requirements. The budgets are then compiled by finance
department. The budget has to be approved by the Managing Director. There will be a
After the budget approval, the list of raw materials is sent to purchasing
department. The purchase department places the purchasing order. The purchasing
order contains the details regarding the quantity required, rate, payment terms,
suppliers name and address etc. The order is then handed over to purchase
department. The purchase department then invites quotation from approved vendors.
The purchase department then prepares a comparative statement on the basis of the
received quotation This is to select the most economical quotation for each specified
materials. KAMCO used to gives awards for the best vendors. It will help the
company to get quality product at the right time. Company has regular suppliers and
they are ready to give materials as per the requirements of the company. So at present,
vendor development committee recommends new vendors and maintains the existing
list
If the quotations seem to suit the terms and conditions, the purchasing
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Assistant Engineers are in charge of inspecting the raw material of Tiller
the its requirement in the company. If it is a general item like computers, office
proposal.
Manager QA
Asst.
Mechanics
Charge head of fully Charge head for plant Charge head for final
bought product
Mechanics Mechanics
Mechanics
Figure1.7
Quality assurance Department inspects the quality of materials or parts, which was received
from vendors. Quality management is becomes a key variables in the strategic business
policy of the organization at present, Quality management is an important area which will
require maximum attention of top management. The attitudes of quality such as performance,
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features, conference, reliability, should constantly evaluated and upgraded so as to cope with
the current and future market demands,
Quality assurance clarifies the components into two critical component and non-critical
components. Critical components are crank shaft, all engine parts, gear wheels etc. Non
critical components are nuts, bolts and screws etc. The clarification is mainly for ignoring the
practical difficulty in checking non critical components and only sample inspection in non-
critical components. Practical difficulty in checking the non-critical component is problem
there from here the production department as there requirements takes the components, after
getting a finished product from the assembly department for the final checking. If getting a
finished product from the assembly department for the final checking. If it is Ok it is gone to
the store. From these the machine will enter into marker through dealers.
Quality assurance Department is equipped with all modal facilities. The company has
calibration cell to check and correct the measurements of all measuring instruments.
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3. PRODUCTION DEPARTMENT
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Figure1.8
Production Department is also known as works department. It is divided into Assembly shop,
Machine shop, and a small sub unit for painting which is a sub unit of assembly shop.
Annual production is based on the budget this production figure is broken down into monthly
targets. Assembly of power tiller is done in separate assembly line viz, engine line,
transmission line, tiller line.
Parts required for assemblies are got through stock issue notes. Parts required for assembly at
each work Centre is located in bines at appropriate work section with indication standard
parts required by different work centres are kept in centralized places. Painted parts are
obtained from the painting section.
In an assembly line record each assembly line where chassis or engine number of each
assembly is noted.
• After completion of each assembly line concerned machine verifies the assembly and sign
the assembly tags with date,
• At the end of each assembly chief mechanic of that line clears the assembly for the next
assembly line,
36
Assembly rejections are removed from the work Centre.
• Tillers are offered for inspection to QA department along with tiller completion report.
Engine after inspection are handed back with finished tiller inspection report.
• Assembling
• Pre-treatment and Painting
• Machine Shop
Functions:-
I. Assembly Shop
Assembly is one of the major sections in production department. The finished components
are taken from the stores and it is sent to assembly as required. The engine assembly is one of
the main work in the assembly. After testing the assembled engines, it is sent to the painting
section.
Through different transmission in the assembly we get the finished products. In the power
tiller here using two types of engines (Diesel engines and DI engines)
In KAMCO they are using a good advanced booth. After cleaning the components it will go
for painting through a conveyer belt and after painting it will go over through the belt Mainly
they are using color for painting one is Ash and other is Post office red.
Company has a machine shop which is producing 15 components. These are critical
components. Company has a modern machine shop with special purpose machines which
ensures conformity with prescribed quality standards. The materials purchased by the
purchase department, then sent to the stores from their materials to the QA department, it sent
to the Machine shop. In the machine shop the process like milling, drilling, boring etc are
doing on material to get product which is used in the assembly. From the machine shop the
finished products are directly sent to the assembly only for the inspection in QA. From the
QA it will be sent to the stores.
37
4. Maintenance department
Manager
production
Asst. Manager
(maintenance)
Asst. Engineer
Charge Head
Charge Head
Electrical
Mechanical
1. Preventive maintenance
2. Breakdown maintenance
3. General Maintenance
4. Spare parts management
Spares and consumables required are procured and when required. Review of spare parts and
consumables is carried out once in a year. Shift arrangements are done by HOD of
maintenance.
All the machines and equipment’s are attended once in every month, defects notices if any
rectified. Head of the department carries out final checks.
38
After carrying out preventive maintenance work the preventive maintenance checklist are
filled up by the electrician or mechanic and counter signed by charge hand or chief mechanic
department head reviews the reports every month
Monthly report is given to divisional head. Maintenance schedules are reviewed every 6
months by divisional head,
• Maintenance work is also done through outside agencies and the transactions are
recorded
• Machine breakdown data is analysed using Pareto's principle.
• Spare parts maintenance is done once in a year
• Areas covered by the maintenance department are electrical, substation, telephone
system, water supply system, welding operations and general maintenance.
• Shift arrangements of the work are done by the HRD maintenance.
The maintenance motto of maintenance department is to minimize the down time and make
available all the machinery promptly. The main responsibility of electrical section is
uninterrupted pov.er supply and total preventive maintenance
DGM (R&D)
39
Asst. Manager
Figure1.10
KAMCO has a very intelligent research and development team. The R and D activities of the
company are now being attached to the engineering departments. Government of India had
stipulated certain norms to meet the minimum performance standard for the pov.er tiller in
view of the complaints of farmers on the performance of power tillers especially after the
introduction
of Chinese tillers. According all the power tiller manufactures have been adlovised to
company with the minimum performance standards to consider subsidy for the power tiller at
the end of the final year. TIE modifications are implemented by delivering safety cover with
in the record time and the tiller got tested and approved by central farm testing and training
institute, Budni during May-July 2001, Government of India had cleared
Training institute, Budni during May-July 2001, Government of India had cleared KAMCO
power tiller meeting minimum standards in July 2001 for eligibility of subsidy,
Functions:
40
3. Keeping all drawings in safe custody, maintain them promptly and issue copies to
indenting department
6. SYSTEM DEPARTMENT
M
e
g
a
n r
G
D
n
a
M
g
o
r
p e
g
m
a
t
i
r
u
c
e
S &
y
C
&
F
(
t
s
y
S
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e
m
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t
e
N
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)
S
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Figure1.11
This is the youngest department in the company. KAMCO is still in the process of developing
a system whereby it can make optimum usage of IT recourses. At present KAMCO makes
use of a customized ERP package based on ORACLE. The package developed and is
implemented in 2001-2002. The system department does not play a role in production
planning.
The module incorporated in ERP package used are the Finance Module, Marketing Module,
Purchase processing, and Inventory Module, Human Resource Management and the
Maintenance Module.
Finance Module:
41
• Day to Day cash position reporting
• Individual bank wise balance reporting
Marketing Module:
• Order booking
• Invoicing
• After sales service
• Purchase processing
• Material requirements
• Inventory transactions
• Finished goods evaluation
• Material rejection
Maintenance Module:
• Equipment maintenance
• Calibration
VISION:-
KAMCO with over 3 decades of engineering excellence stands as the number one power
tiller manufactures in India. Not surprising, with four state of the art products, an innovation
R and D and stringer quality control systems rated as one of the best in the country. The
42
technically competent, dedicated management and workforce will go on to ensure that
KAMCO shall be leader for several years to come,
MISSION:-
1. Power Tiller
Power tiller is the main product of KAMCO. It is a versatile machine
that has radically changed the old labour intensive methods of agriculture, by making almost
all farming operations faster, cheaper and easier. The cost on tiller is around 1.10 lakh.
Features
43
It is faster
Weight is 485 kg
2. Diesel Engine
Features
Economical with minimum fuel cost
Smooth starting
Easier operation
Less vibration
Less noise
H P -12.
3. Power Reaper
Features
Power reaper harvests and makes windrows at the rate of 3-4 hours for
hectare.
Smooth chain conveyer action deliver plants gently making clean windrows
Weight is 136 kg
Engine type is single cylinder,4 stroke CSD RR, side valve air cooled engine
44
Other Products
All the above products are supplied by KAMCO to the needy people by the way of
manufacturing on a limited edition. KAMCO has a future plan of manufacturing the above
PERFORMANCE ANALYSIS
Performance analysis is a tool for analysing the performance of the company. By comparing
the performance of the company with those of the previous year performances, we can
understand company's growth for this study the company's sales details and its profit to be
taken to evaluate the whole performance of the company. Performance analysis is helpful to
understand its position in the competitive market. IN LAKHS
2013-2014 2012-2013
PRODUCTION
KAMCO power tiller 14577 12085
KAMCO power reaper 1453 1644
Terra tractor 101 12
SALES
KAMCO power tiller 13261 11581
KAMCO power reaper 1788 1956
Terra tractor 24 9
KAMCO engine 28 14
KAMCO – barbeiri garden 235 283
tiller
FINANCIAL HIGHLIGHT
45
in lakhs
SALES REVENUE
KAMCO power tiller 15779.29 13551.64
KAMCO power reaper 1241.79 1306.08
Tera tractor 86.33 32.22
KAMCO – barbeiri garden 94.71 111.35
tiller
APPROPRIATION
Other reserves 70 70
46
During the financial year 2012-2013 company could achieve record production and sales and
production during the period was 14577 nos. of tillers, 1453 nos. of reapers and 101 nos. of
tractors against 12085 nos. of tillers 1644 numbers of reapers and 12 nos. of tractors during
2012-2013. Total turnover during the period was rupees. 192.21 crores as against rs.168.28
crores during its previous year; registering an increase of 14%. Operating profit also
improved by 36% and stood at rs. 701 lakhs as against rs.514 lakhs during 2012-2013
IN LAKHS
2014-2015 2013-2014
PRODUCTION
KAMCO power tiller 9785 14577
KAMCO power reaper 1413 1453
Tera tractor 26 101
SALES
KAMCO power tiller 10716 13261
KAMCO power reaper 1688 1788
Terra tractor 30 24
KAMCO engine 54 28
KAMCO – barbeiri garden 120 235
tiller
FINANCIAL HIGHLIGHT
in lakhs
SALES REVENUE
KAMCO power tiller 13353.13 15779.29
KAMCO power reaper 1274.84 1241.79
Tera tractor 85.25 86.33
KAMCO – barbeiri garden 55.10 94.71
tiller
Diesel engine 31.54 16.66
Spare and accessories 2047.55 2002.01
Total sales 168477.41 19220.79
working result
operating profit 360.30 700.75
Depreciation amortization 266.46 226.24
Cash profit 626.76 926.99
Profit before tax 360.30 700.75
Provision for tax and deferred 117.5 154.74
tax
Profit available for 242.8 546.01
appropriation
APPROPRIATION
47
Proposed dividend 48.44 48.44
Tax on dividend 9.91 7.85
Other reserves 70 70
Profit after tax dividend and 114.45 419.72
transfer to reserve
Table 2.3
During the year under review company could achieve a production of 9785 numbers of tillers
and 1413 numbers of reapers as against 14577 numbers and 1453 numbers of tillers and
reapers during financial year 2013-14. Sales during the reporting period was 10716 numbers
of tillers and 1688 numbers of reapers against 13261 numbers of tillers and 1788 numbers of
reapers during previous year. The total turnover of the financial year was Rupees 168.5
Crores against 192.2 Crores during the year 2013- 14. The financial year 2014-15 ended up
with a cash profit of Rs.626.76 lakhs (Rse926.99 lakh) and operating profit of Rs.360.30
lakhs(Rs.700.75 lakhs)
IN LAKHS
2015-2016 2014-2015
PRODUCTION
KAMCO power tiller 8745 9785
KAMCO power reaper 1132 1413
Terra tractor 22 26
SALES
KAMCO power tiller 9764 10716
KAMCO power reaper 930 1688
Terra tractor 50 30
KAMCO engine 61 54
KAMCO – barbeiri garden 246 120
tiller
FINANCIAL HIGHLIGHT
in lakhs
SALES REVENUE
KAMCO power tiller 12231075 13353.13
KAMCO power reaper 721.72 1274.84
Terra tractor 132.08 85.25
KAMCO – barbeiri garden 114.69 55.10
tiller
Diesel engine 36.11 31.54
Spare and accessories 1979.58 2047.55
Total sales 15215.93 16847.41
48
working result
operating profit 239.84 360.30
Depreciation amortization 212.91 266.46
Cash profit 452.75 626.76
Profit before tax 239.84 360.30
Provision for tax and deferred 111.06 117.50
tax
Profit available for 128.78 242.8
appropriation
APPROPRIATION
Proposed dividend 16.15 48.44
Tax on dividend 2.73 9.91
Other reserves 50.00 70
Profit after tax dividend and 59.90 114.45
transfer to reserve
Table 2.4
During the year under review company could achieve a production of 8745 numbers of tillers
and 1132 numbers of reapers as against 9785 numbers and 1413 numbers of tillers and
reapers during financial year 2014-15. Sales during the reporting period was 9764 numbers
of tillers and 930 numbers of reapers against 10716 numbers of tillers and 1688 numbers of
reapers during previous year. The total turnover of the financial year was Rupees 152.16
Crores against Rupees 168.47 Crores during the year 2014-15. The financial year 2015-16
ended up with a cash profit of Rs.452.75 lakhs (Rs.626.76 lakh) and operating profit of
Rs.239.84 lakhs(Rs360.30 lakhs).
IN LAKHS
2016-2017 2015-2016
PRODUCTION
KAMCO power tiller 9986 8745
KAMCO power reaper 1530 1132
Terra tractor 18 22
SALES
KAMCO power tiller 9412 9764
KAMCO power reaper 1744 930
Terra tractor 17 50
KAMCO engine 51 61
KAMCO – barbeiri garden 192 246
tiller
FINANCIAL HIGHLIGHT
in lakhs
49
SALES REVENUE
KAMCO power tiller 11737.57 12231.75
KAMCO power reaper 1343.40 721.72
Terra tractor 30.56 132.08
KAMCO – barbeiri garden 91.12 114.69
tiller
Diesel engine 30.72 36.11
Spare and accessories 2105.20 1979.58
Total sales 15338.57 15215.93
working result
operating profit 284.77 239.84
Depreciation amortization 260.39 212.91
Cash profit 545.16 452.75
Profit before tax 284.77 239.84
Provision for tax and deferred 95.21 111.06
tax
Profit available for 189.56 128.78
appropriation
APPROPRIATION
Proposed dividend 16.15 16.15
Tax on dividend 3.78 2.73
Other reserves 50 50
Profit after tax dividend and 119.63 59.90
transfer to reserve
During the year under review company could achieve a production of 9986 numbers of tillers
and 1530 numbers of reapers as against 8745 numbers and 1132 numbers of tillers and
reapers respectively during financial year 2015-16. Sales during the reporting period was
9412 numbers of tillers and 91744 numbers of reapers against 9764 numbers of tillers and
930 numbers of reapers during previous year. The total turnover of the financial year was
Rupees 15338.57 lakhs against Rupees 15215.93 lakhs during the year 2016-17. The
financial year 2016-17 ended up with a cash profit of Rs. 545.16 lakhs and operating profit of
Rs.284.77 lakhs.
IN LAKHS
2017-2018 2016-2017
PRODUCTION
KAMCO power tiller 9782 9986
KAMCO power reaper 2837 1530
Terra tractor 5 18
50
SALES
KAMCO power tiller 9588 9412
KAMCO power reaper 2633 1744
Terra tractor 13 17
KAMCO engine 32 51
KAMCO – barbeiri garden 191 192
tiller
FINANCIAL HIGHLIGHT
in lakhs
SALES REVENUE
KAMCO power tiller 11653.47 11737.57
KAMCO power reaper 2106.66 1343.40
Terra tractor 36.79 30.56
KAMCO – barbeiri garden 90.55 91.12
tiller
Diesel engine 18.18 30.72
Spare and accessories 1693.21 2105.20
Total sales 15598.86 15338.57
working result
operating profit 375.79 284.77
Depreciation amortization 226.85 260.39
Cash profit 602.64 545.16
Profit before tax 375.79 284.77
Provision for tax and deferred 136.03 95.21
tax
Profit available for 239.76 189.56
appropriation
APPROPRIATION
Proposed dividend 16.15 16.15
Tax on dividend 3.29 3.78
Other reserves 50 50
Profit after tax dividend and 170.32 119.63
transfer to reserve
During the year under review company could achieve a production of 9782 numbers of tillers
and 2837 numbers of reapers as against 9986 numbers and 1530 numbers of tillers and
reapers respectively during financial year 2016-17. Sales during the reporting period was
9588 numbers of tillers and 2633 numbers of reapers against 9412 numbers of tillers and
1744 numbers of reapers during previous year. The total turnover of the financial year was
Rupees 15598.86 lakhs against Rupees15338.57 lakhs during the year 2016-17. The financial
51
year 2017-18 ended up with a cash profit of Rs. 602.64 lakhs and operating profit of
Rs.375.79 lakhs.
MARKET
b) New Dealers appointed to cover selected districts in Tamil Nadu, Karnataka, Maharashtra,
Orissa and AndraPradesh.
c) Close interaction with the Govt. of India in the formulation of new schemes & policies for
farm mechanization.
d) Regular demonstrations and service camps are being organized in various States.
e) KAMCO Power Reaper has been exported to Iran and Sri Lanka recently. These Machines
has been well accepted by the customers.
SWOT ANALYSIS
The overall evaluation of the company's Strength, Weakness, Opportunities, and Threats is
called SWOT ANALYSIS. It is the key elements influence the survival and development of
the organization. It will helpful for the improvement of organizational strategies.
STRENGTH
6. Environment friendly
52
8. Strong & accepted products
WEAKNESSES
2. Political interference
OPPORTUNITES
2. Innovativeness and bringing out new products to meet the new needs of customers
5. Export possibilities
7. Availability of Monsoon
THREATS
53
1. Influence of Govt. policies
3. Chance of Privatisation
5. Depression in agriculture
8. Whether problem
CHAPTER 3
CHAPTER 4
54
4.1. WEEKLY ACTIVITY/PROGRESS REPORT
55
Date & Time Tasks Tasks Observations
Day Assigned Completed
15-07-‘19 9:00am- Preparation of Entire task Understand about the
4:00pm excel completed payments made by the
Monday
company
16-07-‘19 9:00am- Generating and Not applicable Gained a meaningful
4:00pm analyzing report insight about the
Tuesday business performance
17-07-‘19 9:00am- Review the Entire task Ensured that these are
4:00pm accounting ledgers completed correct
Wednesday prepared by the
accountant
18-07-‘19 9:00am- Entering data into Entire task Data entry work make it
4:00pm excel completed more efficient
Thursday
56
Tuesday performance company
24-07-‘19 9:00am- Analysing financial Entire task Provide information that
4:00pm data completed will assist in future
Wednesday planning and decision
making
25-07-‘19 9:00am- Helped in preparing Entire task Understood the short
4:00pm weekly reports completed term decisions taken by
Thursday the company
26-07-‘19 9:00am- Participate in risk Entire task Understood about all the
4:00pm assessment and risk completed risk faced by the
Friday management company
activities
(holiday)
01-08-‘19 9:00am- Attended the class of NIL Got an idea about the
4:00pm finance manager methods of production.
Thursday
57
06-08-‘19 9:00am- Entering data Entire task Understood the payment
4:00pm completed details
Tuesday
07-08-‘19 9:00am-
Wednesday
4:00pm
- Organization is providing all the statutory and non statutory benefits to employees.
58
- KAMCO having good growth possibilities.
CHAPTER 5
CONCLUSION
company was established in the year 1973 at Athani. Today KAMCO has different units in
Kalamassery, Palakkad and Mala. The ain products of KAMCO are KAMCO Power Tiller,
KAMCO has a good dealer network all over the country. Customers of KAMCO are
fully satisfied with the products and hence KAMCO’s products have good brand name. The
59
The “ INTERNSHIP” at KAMCO, Athani was undertaken with the objective of
developing an insight about administration and management of a business firm .The study at
KAMCO helped the trainee to gain good knowledge about the operation of a business firm
the trainee left that the study was successful and a memorable one.
3. The organization should provide better in the recreation facilities to the employees
6. The company resources are to be utilized to the maximum. So that there will be
efficiency in its operation.
13. Timely promotion should be done on the basis of performance and experience
REFERENCE
Company Website: -
www.kamco.com
www.kamcoindia.com
company magazines and report
60
61