Selvam Final.docx

KAMADHENU AUTO CNC

INTERNSHIP REPORT ON “AN ORGANISATIONAL STUDY AT KAMDHENNU AUTO CNC” Submitted by KISHOR U USN: 1DA17MBA23 Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAVI In partial fulfilment of internship study requirements of MASTER OF BUSINESS ADMINISTRATION UNDER THE GUIDANCE OF INTERNAL GUID

EXTERNAL GUID

Ms ARUNDATHI S V. ASSISTANT

MR BHARATH

PROFESSOR

GENERAL MANAGER

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION AMBEDKAR INSTITUTE OF TECHNOLOGY Near Jnana Bharathi Campus, Bengaluru, Karnataka 560056 Batch: 2017-19

Dr. AIT, Bangalore

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KAMADHENU AUTO CNC

DECLARATION

I, KISHOR, hereby declare that this internship report entitled “AN ORGANISATIONAL STUDY” at KAMADHENU AUTO CNC is prepared by me under the guidance of MS. ARUNDATHI. S. V Associate professor of Dr. Ambedkar Institute of Technology and external assistance by MR.BHARATH. I also declare that the internship study undertaken by me after the second semester of Master of Business Administration (MBA) is as per the curriculum requirement and the regulations stipulated by Dr. AMBEDKAR INSTITUTE OF TECHNOLOGY affiliated to VTU. I have undertaken this internship study program for a period of four weeks from 16th July 2018 to 27th August 2018. I further declare that this internship study is based on the original study undertaken by me and has not been submitted for the award of any degree/diploma from any other University/Institution.

Place: Bengaluru

Signature of the student

Date:

Dr. AIT, Bangalore

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KAMADHENU AUTO CNC

ACKNOWLEDGEMENT An internship study is an opportunity in a management student’s career where he/she can acquire invaluable knowledge as to how an organization actually functions as well as the process of the various departments of organization. The satisfaction that accompanies the successful completion of any study would be incomplete without mentioning the people who made it possible, whose, consistent guidance and encouragement crowned my efforts with success. I would like to express my sincere thanks to our Principal, Dr Sri. C. NANJUNDSWAMY of Dr. Ambedkar Institute of Technology, Bengaluru, for provide me an opportunity to undertake this internship study. I thank our Professor and Head of the Department Dr. S.BHASKARAN.S, Assistant Professor and Head Department of MBA, for motivating me to gain the organizational and operational perspectives. I am also grateful to my guide MS ARUNDATHI. S. V Assistant Professor, Department of Management of Business Administration, for her constant support and inspiration throughout the internship study as well as her encouragement, suggestion and guidance to complete this internship study successfully. I am very thankful to MR BHARATH, General Manager of the esteemed organization for their valuable guidance and constant encouragement greatly helped me in beginning the work to successful completion. Finally, I would like to express my thanks to everyone who directly and indirectly helped me in my project work. NAME: KISHOR USN:1DA17MBA23

Dr. AIT, Bangalore

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KAMADHENU AUTO CNC

TABLE OF CONTENTS CHAPTERS Chapter:1

CONTENTS Industry Profile i. ii. iii.

Chapter:2

History or origin of the Industry Current status Future prospects.

Organization Profile: i. ii. iii. iv. v. vi. vii. viii. ix.

Background Achievements/ awards if any Nature of the business Vision mission, quality policy Product or service profile Ownership pattern Competitors Information Infrastructure Details Future growth and prospects

Chapter:3

Mckensy’s 7s framework with special reference to organization under study

Chapter:4

Analysis of Financial statement &SWOT Analysis

Chapter:5

Learning Experience

BIBLIOGRAPHY

ANNEXURE : if any.

Dr. AIT, Bangalore

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KAMADHENU AUTO CNC

CHAPTER 1 INDUSTRY PROFILE

History or origin of the Industry Kamadhenu auto CNC established in the name of Kamadhenu enterprise starts as a cottage industry by the visionary guidance from the managing director Mr. N. Dharma lingam along with Mr. M N Suresh Kumar which was then converted into private limited company in the year 2005with their teamwork, honesty, simplicity, passion & dedication towards the company to make it the leading manufacturer of CNC machining precision components, automobile spares, hydraulic components, aerospace components and rapid prototyping / 3D printing and many more, makes it grow to the current position with the annual turnover of nearly RS. 140 million. Kamadennu auto CNC private ltd is a precision company established in the year 1991.equipped with CNC turning CNC milling, single spindle automats and precision conventional machinery &tools. It was located in Asia’s biggest industrial area, heart and industrial area of Bangalore i.e. peenya.It is a manufacturing and supplying company of prototyping Turned components, rapid 3DPrintung products, automobile spares &many more. To accent the relationship with the new and old customers the organization starts to expand the o the employees to meet the requirements of their customers and globalization of the company. Production units and increase the no of machineries, equipment’s and infrastructure facilities to meet the requirements of their customers and globalization of the company. It is a BUSINESS TO BUSINESS manufacturing company, it was established and tie up with the following companies.

Company entered into strategic understanding with M/S Ashok Leyland. Haritha seating systems Ltd. Hosur to supply components as per their requirements and specifications. Presently

Dr. AIT, Bangalore

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KAMADHENU AUTO CNC

company are approved vendors to M/S Ashok Leyland ltd. (all units), vehicle factory, Jabalpur (ministry of defense), M/S walvoil, WIRPO It is machine components for precision engineering industries. It is an ISO090012015company.value our customer’s satisfaction and strive to delight their customers. There is a healthy tradition to strive to meet the customer’s expectation in terms of quality assurance and delivery in required period. They are guided in their mission by the ethic of 100% customer satisfaction. M/S Kamadhenu auto CNC pvt ltd.id ISO9001 certified company.

Dr. AIT, Bangalore

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CHAPTER 2 ORGANIZATION PROFILE

i.

Background

Nature of business: manufacturing. Additional business: suppliers. Total no of employees: 50. Year of establishment: 1991. Legal status of the company: private limited company. Annual turnover: 10 Corers. Statutory profile CIN NO: U29219KA2004PTC03424 Packaging /payment and shipment details. Payment mode 

Cash



Cheque



DD

Shipment mode: by road. Industry current status The Kamadhenu auto industries current status as follows.

The total paid-up capital is INR 20.00 lakhs. The company also has secured loans in the amount of INR 1.15.cr. Type of property required for this franchise opportunity commercial. Floor area requirements 1500sq. location of unit franchise outlet market or main road.

Dr. AIT, Bangalore

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ii.

Awards and achievements.

“Supplier of the year award -2009” to auto line industries, USANi in recognition of its performance in brake and clutch pedal product line Performance award for “Excellence in Quality” in sheet metal business at National Vendor meet – February, 2010  

“Excellent performance award” in Stamping & Fabrication Business at National Vendor meet of Cummins ABO – For the Year 2010. “Quality Performance Award – 2013.

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iii. 

Expand customer base in the existing component manufacturing business in the near term and pursue profitable sectors into the medium and long term.



To be identified as a reliable & dependable vendor in terms of Quality, Cost and On-Time Delivery to all industries served by us



To double the turnover in the current fiscal, and sustain a 33% annual growth rate in revenues thereafter



To be a Dynamic, Innovative and Profitable Global Automotive Organization for emerging as the Preferred Supplier and Employer, to Create Value for all Stakeholders. Mission Our mission is to be an Automotive System Solution provider and Build a Brand recognized by vehicle manufacturers progressively all over the world. CNC is a nonprofit organization providing human services to persons in need from all racial and ethnic group.

 

  

Vision mission, quality policy

Core Values Passion for Excellence. Nurture Talent, Competency & Willingness. Respect & Humility. Core Purpose To be a happy, inspiring and proud place to work, setting benchmarks and delivering products that give customers an edge in their businesses. iv.

Company’s major product line

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v.

Ownership pattern.

Before 2005 it was a cottage industry, after that under the guide line of Mr. N. Dharma lingam along with Mr. N Suresh Kumar Kamadhenu industry converted into a private limited company. The total paid up capital of the company is INR20.00LAC. The company has the secured loan worth of 1.0CR.out of which 86.0LAC has been paid. vi. Competitors of the company 1) Bharat Forge Limited (BFL), a Pune-based Indian multinational company, is a technology driven global leader in metal forming, having transcontinental presence across nine manufacturing locations, serving several sectors including automotive, power, oil and gas, construction & mining, rail, marine and aerospace. Part of Kaylan Group, BFL today has the largest repository of metallurgical knowledge in the region. 2)BOSCH is a leading supplier of technology and services in the areas of Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. Additionally, Bosch has in India the largest development center outside Germany, for end to end engineering and technology solutions. 3) SPARK MINDA, Ashok Mina Group (erstwhile MINA Group) has been a major presence in India’s automobile industry. These fifty years have been spread by a number of technological innovations that have gone on to become industry standards. 4) Samvardhana Motherson Group (SMG) combines the power of innovation and product quality to passionately create world class products that cater to customer needs across diverse industries, especially automotive. 5) The TVS Group is India’s leading supplier of automotive components and one of the country’s most respected business groups. With a combined turnover of more than over US$ 6.5 Billion. Charting a steady growth path of expansion and diversification, it currently comprises of over 50 companies. 6) The Armtek Group, headquartered in India, is one of the largest integrated component manufacturers in India with a strong global presence. It has also become one of the world’s largest global forging and integrated machining companies. The Group has operations across Forging, Iron and Aluminum Casting, Machining and Sub-Assemblies. 7) Exide the first and foremost battery brand in India. Exide’s journey dates back to as far as the 1880s when the automobile battery was at its infancy and evolving to maturity step by step. Exide is the only brand that offers a battery for every type of vehicle on Indian roads. Exide is the chosen battery for all international automobile companies in India. Dr. AIT, Bangalore

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9) Gabriel India Limited is the flagship company of ANAND and a leading name in the Indian Auto Component Industry. Established in 1961, the company provides the widest range of ride control products in India, including Shock Absorbers, Struts and Front Forks, across every automotive segment with over 300 product models on offer. 10) JBM Group is a focused, dynamic and progressive organization that provides customers with value added products, services and innovative solutions. The Group has a diversified portfolio to serve in the field of automotive, engineering & design services, renewable energy and education sectors and has an infrastructure of 35 manufacturing plants, 4 engineering & design centers across 18 locations globally. 11) JMT Auto Limited is one of the largest Auto component manufacturers in the Eastern region and has significant expertise in the auto sector with proven capabilities in Heat treatment & gear manufacturing besides a variety of components for Oil and Gas industry. Established in 1987, the company has the competitive edge based on the latest CNC Technology, its core competence being high precision Gears and Shafts. 12) The Sona Group was founded in 1987 to manufacture components for the automotive industry. Today it is a US$ 800 million multinational – with over 16 plants across India, 3 in Germany and 1 in the USA. The group also has a strategic position in Fuji Autotec, Europe – which has subsidiaries in Brazil, France, Sweden and the Czech Republic. vii.

Kamadhenu Auto CNC Private Limited has Ownership Pattern.

NAME

DIN/PAN DESIGNATION

DATE OF APPOINTMENT

NARAYANASWAMY SURESH KUMAR

00741495 Director

30 June, 2004

SARALA DHARMA LINGAM

02886726 Director

28 December, 2009

MUNIRAJU GIRIJA DEELIP

02887928 Director

28 December, 2009

Dr. AIT, Bangalore

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The directors are well experienced and work together for the company with their teamwork, honesty, simplicity, passion, and dedication towards the company to make the company as one of the leading manufacturer of CNC machining. The company’s ownership pattern as below CIN

U29219KA2004PTC034246

Company Status

Active

Registration Number

034246

Date of Incorporation

30 June 2004

Registration State

Bangalore

Company Category

Company limited by Shares

Company Sub-Category

Non-govt company

Class of company

Private

Listing status

Unlisted

Date of Last Annual General Meeting

30 September 2016

Date of Latest Balance Sheet

31 March 2016

Dr. AIT, Bangalore

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viii. 

Infrastructure (Facilities) details of the company for employees. Company provides the basic infrastructure to the employees for their welfare.



Company provides uniform, safety shoes, employee ID CARD.



Company provides water in the working condition, every 100 meters one water can



Company also provides food facilities to the employees. 2 times food par employee in day.



Company gives the snacks like biscuit bun rusk etc.



For refreshment of employees provides tea and coffee.in only some areas like office, store, and the working area without heat.



Milk for employees who are working in heat condition like welding powder coating, machine shop, transmission power, paint shop etc. these areas contain more areas.



In the organizations working area, contain the washroom facilities for employees in all department with neat and clean.



For the purpose of employee safety in all the department maintain first aid kit, wheelchair



And company made an agreement with government hospital in the peenya, in the working unit company appoints a doctor and he visited daily to the working unit.



Company provides the ESI facilities to employees for their and their family health.



To encourage the employees by motivating speech by outside resource person



In the company celebrate all national function, and in company celebrate founder day in the month of May first Sunday of the month



In that program employees participate in the sports and cultural program. And employees get the prices for win in the sports.



In that day the employees will show their talent in the culture and project and new innovations.



The workers who works for the organization as 10, 20, years they get awards from the CEO of the company.

Dr. AIT, Bangalore

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KAMADHENU AUTO CNC



For motivating the managers superiors supervisor of the organization the higher authority of company conduct monthly meeting by CEO.



When the employees are assembled in the organization 5 minutes meeting called sunrise meeting, for planning of daily work. The safety measures taken by company in the working area.

• Company provides safety glasses and sustains an eye injury from a metal chip thrown over the top cover of a CNC mill as they walk through the shop. . • Company gives open sandal shoes has a chip fall between their foot and shoe, causing a cut. Shop Clothing Follow these rules of personal dress in the company: • Company provides ANSI approved safety glasses or ANSI safety approved glasses with side shields. Employees must wear safety glasses at all times in the shop, not just when at the machine. • Company provides a tool like earphone for hearing protection. • For all workers company gives Leather shoes. Steel toe shoes are also provide who works handling heavy objects that would crush regular shoes. • Do not wear long sleeve shirts because these could get caught in equipment. Wear short sleeves or T-shirts. • Remove rings and watches when at the machine. • Do not wear short pants. Wear sturdy long pants like blue jeans or work pants. • Long hair should be tied back or under a hat to prevent it being caught in the machine spindle. • Never wear gloves as they can be caught in the machine. Latex gloves are acceptable General Safety Practices Rules for a safe workplace: • Never use any equipment which you have not been trained to operate by a qualified person. • Never tamper with a machine safety guard or switch. • Get into the habit of constantly tidying the workspace. A clean workplace is safer. Random metal can not only scratch and ruin finished parts, they can cause severe cuts. • Use caution when handling cutting tools. They are very sharp. Never handle a tool by its cutting flutes. • Never start or jog the machine until you have checked that the work area is clear • Use caution when running a new program: especially at the start of program and after a tool change. Dr. AIT, Bangalore

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KAMADHENU AUTO CNC

• Know where the emergency stop is on the machine and practice using it before you need it. • Never run a machine alone or without other people within hearing distance. • When working with someone else at the machine, clearly communicate who is running the • Never leave a running machine untended. • Before shutting the machine down, remove any tools from the spindle. • Avoid contact with coolant. Water-based coolant contains microbes that can cause infection. • Report any injuries immediately. • Remain alert. Think safety in everything you do. 2.5 CNC Safety Practices Use these extra precautions when running a CNC program for the first time: • Use machine Rapid and Feed override controls to slow the machine down. • Remain at the machine with a hand on or near the emergency stop button. • Stop machine motion at the first sign of trouble

Dr. AIT, Bangalore

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CHAPTER 3 MCKINSEY 7S FRAMEWORK WITH SPECIAL REFERENCE TO OTAGANIZATION UNDER STUDY Introduction McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7 key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively aligned and allow organization to achieve its objectives. McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Athos. Since the introduction, the model has been widely used by academics and practitioners and remains one of the most popular strategic planning tools. It sought to present an emphasis on human resources (Soft S), rather than the traditional mass production tangibles of capital, infrastructure and equipment, as a key to higher organizational performance. The goal of the model was to show how 7 elements of the company: Structure, Strategy, Skills, Staff, Style, Systems, and Shared values, can be aligned together to achieve effectiveness in a company. The key point of the model is that all the seven areas are interconnected and a change in one area requires change in the rest of a firm for it to function effectively. Below you can find the McKinsey model, which represents the connections between seven areas and divides them into ‘Soft Ss’ and ‘Hard Ss’. The shape of the model emphasizes interconnectedness of the elements. The model can be applied to many situations and is a valuable tool when organizational design is at question. The most common uses of the framework are: 

To facilitate organizational change.



To help implement new strategy.



To identify how each area may change in a future.



To facilitate the merger of organization.

Dr. AIT, Bangalore

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7S FACTORS In McKinsey model, the seven areas of organization are divided into the ‘soft’ and ‘hard’ areas. Strategy, structure and systems are hard elements that are much easier to identify and manage when compared to soft elements. On the other hand, soft areas, although harder to manage, are the foundation of the organization and are more likely to create the sustained competitive advantage. HARD ELEMENTS AND SOFT ELEMENTS 1) STRATEGY

1) SHARED VALUES

2) STRUCTURE

2) SKILLS

3) SYSTEMS

3) STAFF 4)STYLE

Strategy

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Strategy is a plan developed by a firm to achieve sustained competitive advantage and successfully compete in the market. What does a well-aligned strategy mean in 7s McKinsey model? In general, a sound strategy is the one that’s clearly articulated, is long-term, helps to achieve competitive advantage and is reinforced by strong vision, mission and values. But it’s hard to tell if such strategy is well-aligned with other elements when analyzed alone. So the key in 7s model is not to look at your company to find the great strategy, structure, systems and etc. but to look if its aligned with other elements. For example, short-term strategy is usually a poor choice for a company but if it’s aligned with other 6 elements, and then it may provide strong results.

MCKINSEY’S 7S at Kamadhenu auto CNC private limited A) STRATEGY: In the recent years the spare parts of vehicle sector has become very competitive. There are many factors which affects the performance of the business. To overcome all the competitive scenario the company need to strategize its operations. In the course there are several strategies adopted by the organization. This will help the organization to perform according to the expectation and achieve the vision and mission. Some of the strategies the company has successfully adopted are:  Understanding the customer: The organization always tries to understand the requirement of the customers. In the process the customer’s feedback is collected and analyzed the requirement. Accordingly, the promotional strategies are designed.  One stop solution: The organization always tries to offers wide range of products to their customers. Various ranges of spare parts are made available under one roof. The organization also plans and designs various innovative strategies to market its products.  Promotional strategies: The organization has the continuous promotional activities lined up to the customer’s. This would attract the customer’s towards the company.

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KAMADHENU AUTO CNC

 STRATEGIC LOCATION  Excellent Sub-Contracting facilities within a radius of 2 km in Asia’s biggest Industrial estate at Peenya Bangalore  Leverage Sub-Contracting for all critical processes such as  Heat treatment of all types  Surface treatment  Qualified welders training institute  NABL approved testing and metrology labs such as CMTI GML  Multi axis CNC machining  Powder coated painting & liquid painting  Fabrication

B) STRUCTURE Structure represents the way business divisions and units are organized and include the information of who is accountable to whom. In other words, structure is the organizational chart of the firm. It is also one of the most visible and easy to change elements of the framework. A structure of Kamadhenu private limited deals with the vertical as well as horizontal and levels of staff that operate in organization. The structure helps us to know the hierarchy of staff. The various levels of staffs located in Hierarchy are as follows 

Director



General Manager



Quality superior



Production superior



Accounts manager



CNC programmer



CNC operator



Helpers Organizational structure of Kamadhenu CNC auto private limited.

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FUNCTIONS OF MANAGEMENT INFORMATION SYSTEM. Systems are the processes and procedures of the company, which reveal business’ daily activities and how decisions are made. Systems are the area of the firm that determines how business is done and it should be the main focus for managers during organizational change. These transaction counters can capture credit card details and customer information of big customers. Receipts of transactions are cash, credit or in the form of cheque. Oracle finance a package from oracle is used for this purpose.

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D) SKILLS: Skills are the abilities that firm’s employees perform very well. They also include capabilities and competences. During organizational change, the question often arises of what skills the company will really need to reinforce its new strategy or new structure They have to be able to understand the customer and proper communicating people and taking corrective action and problem solving skills should be there and right people have to be appointed. The various skills required by employees at Kamadhenu auto CNC pvt ltd. are 1) CONCEPTUAL SKILLS 2) TECHNICAL SKILLS 3) HUMAN OR INTERPERSONAL SKILLS.

1) CONCEPTUAL SKILLS: The managers and supervisors in the organization must have more of thinking capacity and to abstract more thinking. Due to this the manager can analyses the situations and diagnose the problems. 2) TECHNICAL SKILLS: The employees are given knowledge and ability to use different techniques to achieve what they want to achieve, technical skills are most important for the first level managers. 3) HUMAN OR INTERPERSONAL SKILLS: It is the ability of a manager to work with people, one of the most important task is to work with people. Without people there will not be a need for existence of managers.

Dr. AIT, Bangalore

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SL N O

SKILL TRADE

1

2

3

4

Operators

CNC PROGRAMMI NG CNC OPERATO RS

HELPERS

SKILL LEVEL

HIGHLY SKILLED

HIGHLY SKILLED

SEMI SKILLED

UN SKILLED

No OF PEOPLE ADDITIONAL ACQUIRED SKILLS

5

2

8

6

TENDING TO CNC MACHINES. TOOL OFFSET ENTRIES & MINOR CNC PROGRAMME EDITING CNC TURNING TO MACHINING CENTRE & VICE VERSA SIMPLE CNC PROGRAMMING. EDITING / MODIFICATION OF CNC PROGRAMMES FEW HELPERS TRAINED ON COLUMN DRILLING & PRE OPERATIONS SUCH AS ROUGH TURNING

E) STAFF: Staff element is concerned with what type and how many employees an organization will need and how they will be recruited, trained, motivated and rewarded. In the company more than 60 peoples working as employees, in that 3 directors 5 general mangers 20 supervisor, 25programmers, 2 accountants 30 operators 35 helpers.5 members as housekeeping. The company works in a 3 shifts of 8 hour each, and weekly off in Sunday A) Consultancy Services: For top level management. Employees are recruited though private consultants. They are usually appointed as Departmental Managers. Dr. AIT, Bangalore

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c) Employee Referrals: This is the other main source through which employees are selected. Candidates who have given their previous employer as referrals are first interviewed and from their previous employer, opinion is taken about their behavior and performance in the job. If they receive a positive opinion from their previous employer they are elected. SELECTION PROCEDURE: The following is the selection procedure that the HR department practices to hire its employees a) Interview: For entry level jobs, the candidates are interviewed by departmental head they are asked a few basis questions about their education, previous work experience if any, languages known etc. This is done to evaluate the candidate’s ability to communicate freely and also other skills. b) The company job offers for only ITI, and diploma. Work as CNC machine programmer and operator. INDUCTION: New employees selected will be given a 7 day induction and training program they will be given information about the company’s business, different equipment’s machines tools etc. They will be informed of their roles, duties and responsibilities. They will also be informed about the rules and regulation of the company. COMPENSATION & REWARDS: The employees are rewarded suitably salaries. The salary of an employee includes basic pay. HRA, special allowance, PF ESI Medic aim etc. Annual bonus will be given at the time of dasara. The employees and their dependents are also entitled for medical treatment in recognized hospitals with cashless hospitalization with whom the company has tie ups. If a hospital is not recognized, the amount spent by the employee will be reimbursed TRAINING & DEVELOPMENT:   

Metals and materials Specific machine tools and their uses Tool design and fabrication

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 

Tool operating and safety procedures Mathematics for machining List of courses.

Introduction to machine shop course. It is recommended that employees learn basic machine shop procedures, operations and machining applications. In this course, employees are introduced to basic machine terminology, materials and techniques. Training include an introduction to machine shop tools and instruction in safe ways to use them. Machine tools instruction course. In this employees learn the use of various machine tools, including lathes, milling machines and surface grinders. Employees will also learn proper cutting speeds and material feeding techniques. An advanced training includes instruction in the use of vertical and horizontal mills as well as sawing tools. It might also require the use of CNC machines in laboratory exercises. CNC programming software course. This course provides employees with instruction in the setup and function of various CNC machines. Employees are also taught how to choose the appropriate tools for the job, as well as how to calculate and program task-specific information, and perform quality control inspections during production.

G) SHARED VALUES: Shared values are at the core of McKinsey 7s model. They are the norms and standards that guide employee behavior and company actions and thus, are the foundation of every organization.  Leadership: In thought and in business  Respect & Humility: In dealing with everyone within & outside the organization  Openness & Adaptability: Open to new ideas, knowledge and proactive in meeting challenges emerging from changing business scenarios  Valuing and Nurturing Relationships: With customers, business associates, stakeholders, communities and society  Simplicity & Positivity: To foster innovation, speed and imagination.

Dr. AIT, Bangalore

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CHAPTER 4 ANANLYSIS OF FIANANCIAL STATEMENT AND SWOT ANALYSIS

FINANCIAL ANALYSIS This chapter mainly concentrates on analysis of financial statement and interpreting the results. The balance sheets and the profit and loss accounts of the company are analyzed and a ratio analysis for the same has to be done and the results are to be interpreted. Balance sheet and profit and loss accounts of two years are compare and a ratrio analysis has to be done. The following ratios have been calculated: 1. Profitability Ratio 2. Current Ratio 3. Quick Ratio 4. Net profit Ratio The balance sheet, profit and loss account, and financial summary of future group is studied in this chapter and ratio analysis is done based on the figures by comparing 2years figures.

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PROFIT&LOSS A STATEMENT OF KAMADHENU.

PARTICULAR

2016

2017

Gross sales

112,663

126,789

Less: excise duty

14,398

16813

1(a).Net sales from Operation

98265

109976

2(b). Other operating Income

1713

1500

99978

111476

a. Increase decrease in stock in trade and work in program

311

257

b. Consumption of Raw materials

23093

31330

c. Employees cost

7855

9230

d. Depreciation

3140

3140

e. Power and fuel

25920

30644

f. Freight and forwarding changes

13766

15287

g. Other expenses

21273

18745

TOTLE INCOME

2. Expenditure

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TOTLE

95357

105823

4621

5619

4. Other income

-

-

5. Profit before interest and exceptional items

4621

5619

6. Interest and financial charges

384

1053

7. P/L after interest but before exceptional items

4237

4566

8. Exceptional items

-

-

9. P/L from ordinary activities before tax

4237

4566

10. Tax expenses

1319

1482

11. Net profit from ordinary activities

2918

3084

12. Extraordinary item

-

-

13. Net profit

2918

3084

3. Profit or loss from operation before other income

Interest

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BALANCE SHEET OF KAMDHENU AUTO CNC LTD Particulars

2016

2017

a) Share capital

22662

22622

b) Reserves and surplus

58896

62002

81558

84664

a) Long-Current Liabilities

7791

98582

b) Deferred tax liabilities

3309

3777

c) Other long-term liabilities

372

501

d) Long term provisions

1089

1380

82461

104240

a) Short term borrowings

-

4500

b) Trade payable

14074

14862

c) Other current liabilities

27340

24556

A. EQUITY AND LIABILITIES 1. Shareholders Fund

Total 2. Non-Current Liabilities

Total 3. Current Liabilities

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d) Short term provisions

10128

12691

Total

53000

56609

Total equity and liabilities

215561

245513

a) Fixed assets

140203

189110

b) Long term loans advances

5803

1001

c) Other non-current assets

5954

8385

151960

198496

a) Inventories

11068

16504

b) Trade receivables

2426

2116

c) Cash and cash equivalents

31071

7318

d) Short term loans and advance

18971

21007

e) Other current assets

65

27

B. ASSETS 1. Non-Current Assets

TOTAL 2. Current Assets

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TOTAL

69967

47017

Total assets

215561

245513

Liquidity Ratio: 1. Current Ratio= Current Asset/Current Liabilities 2. Quick Ratio= Quick Assets/ Current Liabilities

Liquidity Ratio

2016

2017

Current Ratio

1.32%

0.83%

Quick Ratio

1.01%

0.53%

INTERPETATION:

Liquidity ratio measures short term solvency of a firm. In the year 2017 there is a huge decrease in company’s current bassets i.e., by 26%. And current liabilities are increased by 10%, this is because company has kept very less cash in the year 2017. This shows company’s ability to pay its short-term obligation have been decreased. Profitability Ratio Profitability Ratio

2016

2017

Net profit ratio

2.96

1.49

Gross profit Ratio

4.70

2.63

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Profitability Ratio measures operating efficiency of a firm. In the above table, Company’s profitability has been decreased in the year 2017, when compare to 2016, this is because Heidelberg’s (Ammasandra) operating expenses were more in the year 2017 and company does not have sufficient cash balance to meet its short-term obligation.

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SWOT ANANLYSIS SWOT analysis is a process that identifies an organization's strengths, weaknesses, opportunities and threats. Specifically, SWOT is a basic, analytical framework that assesses what an entity (usually a business, though it can be used for a place, industry or product) can and cannot do, for factors both internal (the strengths and weaknesses) as well as external (the potential opportunities and threats). Using environmental data to evaluate the position of a company, a SWOT analysis determines what assists the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results: where the organization is today, and where it may be positioned in the future. A SWOT analysis is usually presented as a square with each of the four areas making up one quadrant. This visual arrangement of the information provides a quick overview of the company’s position. Although all the points under a particular heading may not be of equal importance, there are some insights to be had in seeing how the number of opportunities measures up to the number of threats, and so forth. Strengths describe what an organization excels at and separates it from the competition: things like a strong brand, loyal customer base, strong balance sheet, unique technology and so on. Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: things like higher-than-industry average turnover, high levels of debt, an inadequate supply chain or lack of capital. Opportunities refer to favorable external factors that an organization can use to give it a competitive advantage. For example, a car manufacturer may be able to export its cars into a new market, increasing sales and market share, if tariffs in a country are substantially reduced – the "opportunity" in this case. Threats refers to factors that have the potential to harm an organization. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the

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yield of the crop. Other common threats include things like rising costs for inputs, increasing competition, tight labour supply and so on.

SWOT analysis of kamadhenu auto CNC private limited. Strengths 1. Evolving industry: Automobiles represent freedom and economic growth. Automobiles allow people to live, work and travel in ways that were unimaginable a century ago. Automobiles provide access to markets, to doctors, to jobs. Nearly every automobile trip ends with either an economic transaction or some other benefit to the quality of life. 2. Continuous product innovation & technological advancement : With the advent of Evehicles & alternative fuel such as Shell gas, CNG and others, Automobile Companies are increasing R & D expenditure to drive the next phase of growth through use of renewable sources of energy which may be solar, wind etc. 3. Growth shifting to Asian markets : Although American & European market is the pulse of this Industry, but the focus is shifting to developing markets like China, India & other Asian nations because of the rise in disposable income, changing lifestyle & stable economic conditions. Dr. AIT, Bangalore

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KAMADHENU AUTO CNC

4. Increasing demand of VFM vehicles : Intense competition in the matured/developed markets has forced automobile manufacturers to target developing economies. But these developing economies have high demand for VFM products (value for money). In the automobile industry, VFM products would be fuel efficient, high mileage vehicles because majority of customers in these nations prefer vehicles for commuting. On the other hand, developed nations need is of vehicles for interstate travelling and high speed vehicles suitable for long route with high engine power. 5. Increase

in

demand

of

luxury

commercial

vehicles: Companies

like VOLVO,

Daimler/Chrysler, Bharat Benz are betting high & are targeting the developing nations due to increase in demand of Luxury public transportation system. Weakness 1. Cars recalled: Controversies relating to recalling vehicles on account of some technical dis-functionality or non-abidance to govt. led rules is becoming very common. 2. Bargaining power of consumers: Over the last 3-4 decades the automobile market has shifted from demand to supply market. Availability of large number of variants, Stiff competition between them, and long list of alternatives to choose from has given power to customers to choose whatever they like. 3. Growth rate of Automobile industry is the in the hands of the government due to regulations like excise duty, no entry of outside vehicles in the state, decreasing number of validity of registration period & volatility in the fuel prices. These factors always affect the growth of the industry. Opportunities 1. Introducing fuel-efficient vehicles: Optimization of fuel-driven combustion engines and cost efficiency programs are good opportunities for the automobile market. Emerging markets will be the main growth drivers for a long time to come, and hence fuel efficient cars are the need of the hour.

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2. Strategic Alliances: Making strategic alliances can be a smart strategy for Automobile companies. By using specialized capabilities & partnering with other companies, they can differentiate their offerings. 3. Changing lifestyle & customer groups: Three powerful forces are rolling the auto industry. Shift in consumer demand, expanded regulatory requirements for safety and fuel economy, and the increased availability of data and information. Also with the increase in nuclear families there has been increase in demand of two-wheelers & compact cars and this will grow further. 4. Market expansion : Entering new markets like Asian & BRIC nations will result in upsurge in demand of vehicles. After these markets, other markets are likely to emerge soon. 5. OEM priorities: Given the increase in electronic content, OEMs need to collaborate with

suppliers and experts outside the traditional auto industry. Accomplishing this will require changes in the way OEMs function. OEMs will be looking to their top suppliers to coinvest in new global platforms & this will be the driving force in the future. Threats

1. Intense Competition: Presence of such a large number of players in the Automobile industry results into extensive competition, every company eating into others share leaving little scope for new players. 2. Volatility in the fuel Prices: At least for the passenger segment fluctuations in the fuel prices remains the determining factor for its growth. Also government regulations relating the use of alternative fuels like CNG. Shell gas is also affecting the inventories. 3. Sluggish Economy: Macroeconomic uncertainty, Recession, un-employment etc. are the economic factors which will daunt the automobile industry for a long period of time. 4. High fixed cost and investment in R & D: Due to the fact that mature markets are already overcrowded, industry is shifting towards emerging markets by building facilities, R & D centres in these markets. But the ROI out of these decisions is yet to be capitalized.

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CHAPTER 5 LEARNING EXPERIENCE

Finding of the Study Motors industry is very competitive although a few leading organizations are controlling the industry such as Bajaj Tata, Hero, Suzuki, etc. Although Kamadhenu CNC Motors Limited started its journey in 1991 it has been also doing very good. However it can do better but there are many bottlenecks in the organization which are as follows:  Insufficient capital.  Inadequate customer service.  Low employee morale. I can understand there rules and regulation. It will give great pleasure in my future. They can recruit heavy perform people in company. It will expert for their work than company will ultimately profitable.

Conclusion As per the researcher’s observation through the study researcher has have found that the Kamdhenu Auto CNC is performed according to the needs of the situation policy, in some causes there are strict and confidential policies, while in some other cases there is not much structured policy, but more or less practices at Kamdhenu CNC is done for the sake of the organization and the managers and employees working in it. Kamdhenu CNC aims to provide efficient, consistent and cost effective service to consumers, needs to carry on its reputation in the coming years, the efficiency of the organization depends not only on the efficient employees but also on maintaining and developing their skills through training and development . Although CNC has some limitation still the organization is running its operation successfully and that indicates that the system is adequate enough to maintain the efficiency so, we can conclude that CNC practices at is good enough, though not a perfect one.

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BIBILOGRAPHY 1 http://kamadhenu.ind.in/ 2 https://www.indiamart.com/kamadhenuautocnc/about-us.html 3 https://www.tradeindia.com/Seller-1566911-KAMADHENU-AUTO-CNC-PVT-LTD-/ 4 http://www.automobileindustryindia.com/kamadhenu-auto-cnc-pvt-ltd-/aboutus-p1566911sa.html 5 http://www.esuppliersindia.com/kamadhenu-auto-cnc-pvt-ltd-/aboutus-p1566911-u1286015swa.html

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