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Internship Report

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KERALA AGRO MACHINERY CORPORATIONS

LIMITED, ATHANI

SUMMER INTERNSHIP REPORT

Submitted by

ROSHNI ANIL

REG NO–NIE18MBA15

in partial fulfillment of the requirements for the award of the degree


of

MASTER OF BUSINESS ADMINISTRATION

of APJ Abdul Kalam Technological University, Kerala

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

CHAPTER 3 POSITIONING OF THE


INTERN AND HER ROLE

CHAPTER 4 DETAILS ABOUT


INTERNSHIP
4.1 Weekly activity/progress
report
4.2 Contribution of the intern to
the organization
4.3 Knowledge gained from
internship
CHAPTER 6 CONCLUSION
Conclusion
Reference

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.

1.1 OBJECTIVES OF THE STUDY

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

1.2 INDUSTRY ANALYSIS

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

(KAIC) and subsequently became a fully owned Government of Kerala undertaking at

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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).

The Kerala Agro Industries Corporation Limited (KAIC Ltd.) Trivandrum,

(Government of Kerala Company) promoted the establishment of Kerala Agro Machinery

Corporation Limited (KAMCO).The KAIC Ltd. Entered into a technical collaboration

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

shares held by KAIC Ltd.

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.

MILESTONES OF THE COMPANY

KAMCO has three more units:-Kalamassery unit in Ernakulam dist. Kanjikode

unit in Palakkad dist. and Mala unit in Trichur dist. The Kalamassery unit

manufactures diesel engines, Kanjikode unit produce power tiller and the Mala

unit manufactures power reaper.

1. A major milestone for the company was the award of the International

Quality Excellence Certificate under ISO 9002 in October 1996.

2. KAMCO is the second public sector undertaking in Kerala getting this

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

company by KPMG quality registration.

BUSINESS ENVIRONMENT OF KAMCO

As far as KAMCO Ltd is concerns the business environment is in positive side in

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

employees to maintain a harmonious atmosphere resulting to make maximum output.

PRESENT STATUS OF KAMCO

KAMCO is one of the professionally managed company owned by state

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

responsibility in the service of people without respite.

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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

products and service with improved technology and employee participation”.

CORPORATE GOVERNANCE

Being a non-listed GOVT. Company, provisions of the company’s Act 1956 with

regard to corporate governance is not applicable.

POLLUTION CONTROLLING SYSTEM OF KAMCO

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

fuel consumption than the ordinary engine.

ISO 9001-2000 CERTIFICATION

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.

QUALITY POLICY OF KAMCO

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

quality management system is continually improved to enable achievement of the policy

CHAPTER 2
ORGANISATIONAL ANALYSIS

Organization Structure

10
DEPARTMENTS IN KAMCO

In KAMCO there are 11 Departments. They are as follows:-

• 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

DEPUTY GENERAL MANAGER

MARKETING MANAGER

REGIONAL MANAGER

AREA MANAGER Asst. ENGINEERS (Service)

OFFICE STAFF MECHANICS

Duties and responsibilities

DGM (Marketing)

1. Presenting marketing strategy to the board

2. Obtain management approval for periodical target

3. Developing or implementing or Customer loyalty or retention

4. Reporting performance to board for review

5. Arranging press conference periodically(annually)

Manager (Marketing)

1. Preparation and implementation of product/segment wise marketing plan

2. Setting targets to managers reporting to him

3. Implementation of marketing plan

4. Arranging dealer meets

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5. Preparing of MIS reports

A company’s survival depends upon better marketing strategies adopted by the

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

getting good results.

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.

4.2.2 International 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

have been well accepted by the customers.

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.

Major Dealers in India

1. West Bengal

Govt. - West Bengal Industries Corporation

Pvt - Friends machinery and spares Ltd

2. Assam

Govt. - Assam Agro Industries Development Group

Pvt - ChemTrade India Pvt Ltd

3. Tripura

Govt. - Tripura horticulture group

Pvt - Krishishilpa Udyog

4. Meghalaya

Pvt - Stanley Roy Construction

4.2.4 sales promotion

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

price of the ordinary Power Tiller

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

Reapers - Chattisgarh, Orissa, Andra Pradesh, Kerala & Tamil Nadu

2. FINANCE DEPARTMENT

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MANAGING DIRECTOR

DEPUTY GENERAL MANAGER


(FINANCE & COMPANY
SECRETARY)

MANAGER (COST / DEPUTY MANAGER


AUDIT) ACCOUNTS

DEPUTYMANAGER SUPERINTENDENT
(COSTING)

ACCOUNTANT
SUPERINTENDENT
COSTING

ACCOUNTANT

Duties and Responsibilities

DGM (Finance)

1. Submission of strategic matters regarding to finance to board of decision.

2. Submission of quarterly and annual audit accounts to the board.

3. Presentation on dividend decision (final and interim dividend).

4. Financial concurrence on corporate investment decisions.

5. Overall supervision of day to day functions of departments as HOD.

Manager (Cost/Audit)

1. Maintenance of cost record and arranging for cost audit.

2. Preparing MIS reports on pricing and costing, leading to cost control.

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3. Internal audit of various activities and submission of periodical internal audit

report.

4. Preparation of product wise, segment wise cost records.

5. Preparation of quarterly, half yearly, annual financial statement.

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

finance department keeps record of everything concerning income or expenses.

4.4.1 Functions of Finance Department

1. Budget & Budgetary control

2. Management of receipts

3. Management of payments

4. Auditing

5. Costing

6. Statutory transaction

1 .Budget & budgetary control

The annual budget of the company is prepared both for the capital and

revenue expenses based on the requirements furnished by various units 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

revision and approval

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 to the availability of funds, payments commitments are honoured on the

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

action payments are usually done by cheque.

4. Auditing

Internal audit is an essential part of corporate functioning. Internal audit mainly

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

decision of the management is strictly followed by the functional department and is

verified by the internal audit.

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

accounts department the cost of rejection as per warranty claims.

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.

The other functions are:-

1. Cash management

2. Bill Processing

3. Bank receipts

4. Bank payments

5. Sales accounting and costing

KAMCO has shares of 50 lakhs in International Airport, Nedumbassery and

shares of about 1.5 Cr. in Kerala feeds Ltd.KAMCO is a multi-crore, multi-unit

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

organisations are like this.

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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

allocating the funds needed for efficient business transactions

4.4.2 Bankers of KAMCO

1) Union Bank of India

2) State Bank of India

3) Federal Bank

4) Canara bank

5) State Bank of Travancore

HUMAN RESOURCE DEPARTMENT

MANAGING DIRECTOR

DEPUTY GENERAL MANAGER

MANAGER

PERSONNEL SECRETARY

DEPUTY MANAGER

ASSISTANT MANAGER Asst. MANAGER


(SECURITY)

SUPERINTENDENT SUPT. WELFARE

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A good Human Resource Department is considered to be one of the greatest assets of the

company. HR department deals with the welfare of human beings working in an

organisation. Besides welfare , it looks after discipline, IR, training and development,

desirable work atmosphere ,interpersonal relationships etc. HR Department helps in moulding

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

achievements. About 15 employees are working in this department

4.3.1 Workman classification

Workman shall be classified as:-

1. Permanent
2. Probationers
3. Temporary
4. Trainees
5. Apprentices
LEAVE

The following are the leaves granted to the workmen in KAMCO:

1. Earned Leave (Leave with wages)

2. Casual Leave

3. Sick Leave (for those who are not covered under the ESI scheme)

4. Special Leave – Leave without wages

5. Maternity Leave will be granted as per the provisions of the Maternity Benefit Act to

those not covered under the ESI Act

21
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.

4.3.2 Recruitment and Selection

For KAMCO, there is a specific procedure for Recruitment and Selection. We


can see two types of recruitment in KAMCO:-

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,

Promotion, Performance Appraisal, PF etc.

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

probation. Probation period is for two years.

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

workers in the organisation by forming them into different batches.

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

Personality development, Personal Relationship, Transactional Analysis and Productivity.

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.

Training and Development is taken care by HR Manager who is assisted by Personnel

Secretary. Training charges are born by the company itself.

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

various institutions. Effectiveness of the training programs is periodically reviewed for

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.

For officer level, grades allotted are as follows:-

G8 – Asst. Engineer, Superintendent

G9 – Asst. Manager

G10 – Deputy Manager

G11 – Manager

G12 – Senior Manager

G13 – Deputy General Manager

G14 – General Manager

Promotion ratio 1:1 is applicable to G3 and G4 employees ie, technical assistants

and operators/mechanics respectively. Transfers are mainly for officers only. For that MD is

the authorised person.

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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.

Benefits Provided by Kamco to its Employees

Benefits can be classified as Statutory and Non Statutory

Statutory

1. ESI

2. Pf

3. Gratuity

4. Canteen

5. Restroom

6. Light

7. Ventilation

8. Safety measures like Glouse, Boots etc.

Non Statutory

1. Conveyance facility

2. Allowances

3. Incentives

4. Loan Facility

5. Vehicle Loan Facility etc.

4.3.7 Kamco’s Welfare Programmes

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Welfare Programmes can be classified in 6 categories. They are:-

1. Essentials :- It includes items directly needed by employees during production and in

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

wise or company as a whole. Eg-LIC Schemes, accident benefits, personnel accident

benefits, insurance, first aid etc.

3. Health care facilities :- It involves canteen and medical facilities. Example – ESI,

Medical Reimbursement etc.

4. Well being and Motivation :- It is aimed at developing a sense of loyalty and boosting

morale. Example – House building advance, loans, contribution to recreation etc.

5. Work surrounding facilities :- KAMCO provides spittoons, latrines, canteen facilities,

reading room, television, recreation etc.

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

boxes, canteens etc.

8. Shift allowances are as follows :

1. First shift – Rs 5/day.

2. Second shift – Rs 7/day.

3. Third shift – Rs 8/day.

1. Attendance bonus: For no absence during a month 3 days wages is given. For half day, 1

½ days wage will be given.

2. Special allowance Rs. 60 given to all employees.

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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

pm Rs 24 given to workman on Sundays/holidays, when canteen is not functioning.

4. Milk allowance: ¼ litre of milk given to welders and workmen engaged in

painting/phosphate plant.

5. School advance of Rs 1800/- is given to employees.

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

and scooter loans. Interest is 10%.

7. Employees are given festival allowances of Rs 5000/- ever year in connection with onam,

ramzan, Christmas etc. The amount is recovered in 10 equal instalments.

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

medical check-up in a year. It depends upon the nature of work.

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

allowances, uniform stitching allowances etc. A full fledged canteen is functioning at

KAMCO. It provides healthy and hygienic food at subsidised rates to the workers and

employees working at various shifts.

4.3.8 Wages for workmen:

All workmen are employed on monthly wages and will be paid on a monthly
basis.

4.3.9 Attendance:

27
Every workman shall be given an attendance card containing his name,

number etc. Similarly every permanent and probationary workmen shall be

provided with an identity card containing his stamp size photo, name, number, date

of joining, etc.

Assistant Manager Security is in charge of maintaining attendance and also

maintaining discipline in work environment.

4.3.10 Incentive:

A production incentive scheme is followed in KAMCO for the benefit of

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.

In KAMCO, incentives are mainly of 3 types:

1) Direct incentives

2) Semi direct incentives

3) Indirect incentives

Shift Timing:

For Plant Working:

7 am to 3 pm - 1st shift

3 pm to 11 pm – 2nd shift

9 am to 5 pm – General shift

For Security Staff:

8 am to 4 pm - 1st shift

28
4 pm to 12 am – 2nd shift

12 am to 8 am – 3rd shift

For Office Staff:

9.30 am to 5 pm – General shift

9.30 am to 1.30 pm – Saturday

MATERIALS DEPARTMENT

Material Department Structure

.
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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

For the suppliers approaching for registration, following will be applicable.

• 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.

30
PURCHASE AND STORES DEPARTMENT

MANAGING DIRECTOR

MATERIALS MANAGER STORES MANAGER

SENIOR MANAGER SENIOR MANAGER

Asst. MANAGER Asst. MANAGER

Asst. ENGINEER TECHNICAL ASSISTANT

OFFICE STAFF OFFICE STAFF

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.

4.5.1 Duties And Responsibilities

Main Functions of Purchase Department:

1. Purchase planning

2. Price refixation

31
3. Vendor development

4. Purchase order generation

5. Negotiations with the vendors

6. Timely purchase of goods

Duties and responsibilities

General Manager (Purchase)

1. To be responsible for ensuring that all requisite raw material, spaces,

equipment etc are available, so as to ensure smooth production

2. To ensure optimum inventory levels

3. To avoid stock out situation of essential items in the warehouse

4. Product inventory is kept to the minimum level as possible

5. To avoid obsolescence of inventory by time action

6. To report to the board on inventory control measures

Senior Manager (Stores)

1. To be responsible for item wise accounting and control of various inventory

items

2. In charge of warehouse Issues and Receipts

3. Property inventory control by EOQ max-min, Reorder level etc.

4. Up keeping and maintenance of warehouse items

5. Periodical reporting

Purchasing Process at KAMCO

A corporate purchasing system is being followed in KAMCO. All the other

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.

32
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

total amount which is to be allotted to different departments.

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,

company is not conducting any vendor development programmes. If necessary the

vendor development committee recommends new vendors and maintains the existing

list

If the quotations seem to suit the terms and conditions, the purchasing

department sends a purchase proposal. Purchasing manager is in charge of sending

purchase proposal along with the approval of his superiors.

33
Assistant Engineers are in charge of inspecting the raw material of Tiller

items. All other general items are handled by respective departments.

It the item to be purchased is machinery, a committee will be formed to study

the its requirement in the company. If it is a general item like computers, office

furniture’s, then also an enquiry is conducted before forwarding the purchase

proposal.

QUALITY ASSURANCE DEPARTMENT

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,

34
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.

• Ensure quality of line procedures.


• Purchased products quality is assessed by quality assurance department.
• Assembly line inspection done at each work centre.
• Final inspection of the finished products is done.
• Calibration is done by the Quality Assurance.
• A standard committee consisting of the following officers will meet in the beginning
of the year upon approval of the budget and as end when required to assess the
metrology or measuring or testing equipment’s

35
3. PRODUCTION DEPARTMENT

Production Department Structure:-

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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.

• Assembly is carried out as per process chart.


• Work carried out in each work centres is recorded.

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.

Divided into 3 sections

• 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)

II. Painting Booth

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.

III. Machine Shop

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

Maintenance department Structure;-

Manager
production

Asst. Manager
(maintenance)

Asst. Engineer

Charge Head
Charge Head
Electrical
Mechanical

Types of maintenance followed in KAMCO:

Mainly there are 4 types of maintenance management:

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.

In Preventive maintenance, schedule is prepared by head of the department and is given to


concerned department and electrical or mechanical maintenance section. Electrician or
mechanic under the supervision of change hand takes up the machines for preventive
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,

In Breakdown Maintenance, maintenance or repair order is made by the concerned


department indicating the location of nature of faults and signed by the reporting officer,
Maintenance order is received by the section head and handed over to the concerned charge
hand for execution. After completion of the work the operation is demonstrated and the
mechanic hand over the equipment to the concern department. Repair completion report is
given to the concerned department

• 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

5. RESEARCH AND DEVELOPMENT DEPARTMENT

Research &Development Department Structure:-

DGM (R&D)

39
Asst. Manager

Chief Draft men Chief Mechanic

2 Draft men 1 mechanic

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:

1. Revise drawings for correction or improvement based on feedback from customer ,


feedback from production, purchase and Quality assurance departments.
2. This covers activities with regard to modifications for improvement to products and
consequent changes to the relevant drawings. _

40
3. Keeping all drawings in safe custody, maintain them promptly and issue copies to
indenting department

6. SYSTEM DEPARTMENT

System Department Structure:-

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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:

• Payroll and incentive administration


• Material purchases
• Sales
• Payables and Receivables

41
• Day to Day cash position reporting
• Individual bank wise balance reporting

Marketing Module:

• Order booking
• Invoicing
• After sales service

Purchase Processing and Inventory module:

• Purchase processing
• Material requirements
• Inventory transactions
• Finished goods evaluation
• Material rejection

Human Resource Management Module

• Personal history including employee details and service details


• Payroll processing
• Training
• Attendance and incentives including Office time, leave etc

Maintenance Module:

• Equipment maintenance
• Calibration

In KAMCO, the systems in all department is connected through LAN

MISSION, VISION AND VALUES

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:-

• To an innovative, resourceful and profitable company


• To meet customer requirements of quality, service and price consistently _
• To make "doing business with us easy" and delightful to our customers.
• To provide a congenial and entrepreneurial work environment in which employees
can respond to the needs of business and service earn fair reward and can be satisfied.

PRODUCTS OR SERVICES OF THE COMPANY

KAMCO’s Products include:-

1 KAMCO Power Tiller Model KMB 200

2 KAMCO Diesel Engine

3 KAMCO Power Reaper Model KR 120

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

 Simple movement and control for easy of handling

 Perfectly balanced and vibration- free engine to reduce operator fatigue

 Unique radiator cooling system helps in non stop operation

 ‘Fail-safe’ safety devices to prevent accidents

 Automatic fuel control to save precious energy

 Distinctive radiator control system for continuous operations

43
 It is faster

 Make cleaner windrows for easier collection

 6 Forward speed,2 Reverse speed,4 Tilling

 Rotary, diesel-powered, water cooled, with radiator

 Weight is 485 kg

2. Diesel Engine
Features
 Economical with minimum fuel cost

 Smooth starting

 Easier operation

 Equipped with radiator

 Less vibration

 Less noise

 Travelling speed 15 kmph

 H P -12.

3. Power Reaper

Features

 Power reaper harvests and makes windrows at the rate of 3-4 hours for

hectare.

 It is light enough to carry by two persons

 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

 Maximum H P 3.6 Ps.

44
Other Products

KAMCO also deals with the following products:-

1. KAMCO Super DI Power Tiller

2. KAMCO Power Stone Cutter KSC 625

3. KAMCO Agria 602 DE Power Tiller

4. KAMCO Agria Garden Tiller

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

items in a bulk number

FINANCIALS – MARKET SHARE, FINANCIAL PERFORMANCE

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

Diesel engine 16.66 8.04


Spare and accessories 2002.01 1818.75
Total sales 19220.79 16828.08
working result

operating profit 700.75 513.86

Depreciation amortization 226.24 157.73

Cash profit 926.991 671.59

Profit before tax 700.75 513.86

Provision for tax and deferred 154.74 228.34


tax
Profit available for 546.01 285.52
appropriation

APPROPRIATION

Proposed dividend 48.44 48.44

Tax on dividend 7.85 7.85

Other reserves 70 70

Profit after tax dividend and 419.72 159.23


transfer to reserve
Table 2.2

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

a) The Company has 45 dealers all over India.

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

1. KAMCO is the market leader

2. Good working atmosphere

3. Reputed brand name & image

4. Better incentive scheme

5. Qualified & skilled labour

6. Environment friendly

7. Good industrial relations

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8. Strong & accepted products

9. Extensive marketing network through dealers

10. Good & quality products

11. Country wide sales & service networks

12. Easy availability of manufacturing components

13. Good, uninterrupted & continuous vendors

WEAKNESSES

1. Delay in sanctioning of funds

2. Political interference

3. Time delay in recruitment

4. Average age of workforce is 52 years

5. Strong influence of trade union

6. Lack of technological up gradation & automation

7. Promotion is based on experience, so performance will be poor

OPPORTUNITES

1. Diversification programs & products

2. Innovativeness and bringing out new products to meet the new needs of customers

3. Boom in automobile industry and related engineering services

4. Due to good brand name KAMCO can extend the market

5. Export possibilities

6. Scarcity of labour & acceleries, so scope for mechanisation.

7. Availability of Monsoon

THREATS

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1. Influence of Govt. policies

2. High competition from domestic and from International market

3. Chance of Privatisation

4. Frequent change in the top management

5. Depression in agriculture

6. No restriction for Pvt. Parties to enter into this sector

7. High cost of operation

8. Whether problem

CHAPTER 3

POSITIONING OF THE INTERNS AND HER ROLE


 The internship programme at Kerala agro machinery corporation ltd was very much
informative and I could study functioning of various departments of the company and
their relationships, Especially the finance department where which I've done duty,
 I got an opportunity to interact with the employees in the organization.
 It was a great pleasure to work as a team with the professionals. The working
environment in the company was really encouraging and positive.
 Internship programme helped to identify and implement improvements to processes
by analysing current processes and utilizing established improvement methodologies
to maximize the efficiency of the plant and personal and to support company
improvement initiatives.
 Internship programme provided a platform to achieve practical knowledge.
 Internship programme helped me, how to utilize the facilities, equipment, materials
and personnel to improve efficiency oi operations.
 From the above fact, I conclude that Internship training is highly relevant for me and
highly useful for my future jobs.

CHAPTER 4
54
4.1. WEEKLY ACTIVITY/PROGRESS REPORT

Date & Time Tasks Tasks Observations


Day Assigned Completed
01-07-‘19 9:00am- To attended the Not applicable Introduction to
4:00pm class given by company and
Monday
finance manager understood the various
functions of finance
02-07-‘19 9:00am- Asked to read the Not applicable Analyzed the
4:00pm company report for company’s financial
Tuesday the current and statements
previous years
03-07-‘19 9:00am- To attended the Not applicable Understood about the
4:00pm class given by competitive environment
Wednesday and strength, weakness,
finance manager
opportunities , threat of
company.
04-07-‘19 9:00am- To sort the invoice Entire task Getting invoice paid on
4:00pm completed time and view the client
Thursday information
05-07-‘19 9:00am- Produce Inspection Entire task Provides you
4:00pm Goods Received completed information about
Friday Report (IGRR) incoming materials
inspection at the site.

Date & Time Tasks Tasks Observations


Day Assigned Completed
09-07-‘19 9:00am- To attended the Not applicable Understood about the
4:00pm class given by quality policy followed
Tuesday by the company
finance manager

10-07-‘19 9:00am- Asked to read the Not applicable Analyzed the


4:00pm company report for company’s financial
Wednesday the previous years statements
11-07-‘19 9:00am- To attended the Not applicable Understood about the
4:00pm class given by target cost of the
Thursday company
finance manager
12-07-‘19 9:00am- Asked to read the Not applicable Analyzed the company
4:00pm company’s report for cash flow statement
Friday the current year

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

19-07-‘19 9:00am- working with Entire task Entering and managing


4:00pm bookkeeping completed account payables
Friday software

Date & Time Tasks Tasks Observations


Day Assigned Completed
22-07-‘19 9:00am- Performing Entire task Understand about the
4:00pm financial completed financial activities of a
Monday
calculations company
23-07-‘19 9:00am- Reporting on Entire task Understood the financial
4:00pm financial completed performance of the

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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

Date & Time Tasks Tasks Observations


Day Assigned Completed
29-08-‘19 9:00am- Sorting of invoice Entire task Understand about the
4:00pm completed late payment penalties
Monday

30-08-‘19 9:00am- Sorting of invoice Entire task Set up a good


4:00pm completed accounting system
Tuesday
31-08-‘19 9:00am- NIL NIL NIL
Wednesday
4:00pm

(holiday)
01-08-‘19 9:00am- Attended the class of NIL Got an idea about the
4:00pm finance manager methods of production.
Thursday

02-08-‘19 9:00am- Preparation of excel Entire task Designed to support


4:00pm completed accounting functions
Friday such as budgeting

Date & Time Tasks Tasks Observations


Day Assigned Completed
05-08-‘19 9:00am- Entering data Entire task Understood the
4:00pm completed payment details
Monday

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

08-08-‘19 9:00am- Analyzing reports Entire task Understood the capital


4:00pm completed structure of the company
Thursday

09-08-‘19 9:00am- Taking notes Entire task Provide information


4:00pm completed pertaining to company’s
Friday operations and financial
position.

CONTRIBUTION OF THE INTERN TO THE ORGANISATION

LEARNING FROM INTERNSHIP

• Overall knowledge gained from the internship.

- KAMCO has a good organization structure and a good management system.

- KAMCO is a public ltd. Company which is going on in profit.

- KAMCO has good brand name among its customers.

- KAMCO is maintaining good industrial relation.

- Political interference also influences KAMCO.

- KAMCO provides better working conditions to its employees.

- Effective utilization of all resources is done by KAMCO.

- KAMCO provides all the welfare activities to its employees.

- Organization is providing all the statutory and non statutory benefits to employees.

58
- KAMCO having good growth possibilities.

- Qualified and skilled work force is the strength of KAMCO.

- Efficient departments add value to KAMCO.

KNOWLEDGE GAINED FROM INTERSHIP

I gained a practical experience in the constantly -growing field of finance and


learned to analyse and generate reports, taking notes during meetings,
preparing statements, entering data, and assisting with audits. I have also
completed the administrative work while observing different aspects of
accounting, portfolio management, financial reporting and banking. Worked
with bookkeeping software. Handled sensitive and confidential information
with honesty and integrity. Assist with reconciling accounts .

CHAPTER 5

CONCLUSION

Kerala Agro Machinery Corporation Limited (KAMCO) an ISO 9001 : 2000

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 Power Reaper, KAMCO Diesel Engine.

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

strength of KAMCO is its employees. KAMCO is launching new products in accordance

with the needs and wants of farmers (customers).

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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.

Suggestions and Recommendations:-


1. The company should expand export opportunities, so a bit more promotional
activities should be included

2. Reaching better horizons by fostering new partnerships

3. The organization should provide better in the recreation facilities to the employees

4. Intimate major strategies towards empowering dealers

5. The company has to engage in production of variety products

6. The company resources are to be utilized to the maximum. So that there will be
efficiency in its operation.

7. Diversification of products and services is essential for success

8. Give more advertisement through all possible Medias

9. Introduce advanced technology for production

10. Incentive system should be encourage

11. Fill existing vacancies

12. Young candidates must appointed

13. Timely promotion should be done on the basis of performance and experience

14. Workers should avoid wastages of time in the factory

REFERENCE

Company Website: -
www.kamco.com
www.kamcoindia.com
company magazines and report

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