BLK 4 & 4 Midl Colr Copys KSIC LIMITED Aziz

KSIC LIMITED., BANGALORE.
CHAPTER I
EXECUTIVE SUMMARY
The silk weaving factory in Mysore, presently owned by KSIC,

was established in the year 1912 by the Maharaja of Mysore province.
Initially the silk fabrics were manufactured and supplied to meet the
requirements of the royal family and ornamental fabrics to their armed force
the unit was started with 10 looms and gradually increased to 44 looms over
a period. The looms and preparatory machines were imported from
Switzerland and was the first of its kind in India. After India gained
Independence the Mysore state Sericulture department took control of the
silk weaving factory. KSIC Ltd was established on 18 April 1980 with
assistance by state government of Karnataka.
Government and World Bank scheme under integrated Karnataka
sericulture project. KSIC is the only organisation in the country
commanding the entire gamut of silk production right from the reeling of
cocoons to the weaving of pure silk fabrics, under one roof. The output
share of textile has decreased from 21.8% in 1970 to 13.7% in 1990 while
that of machinery and equipment has increased from 12.2% to 34.1%.
As part of MBA programme Bangalore University as required to undertaken

in KSIC. This Internship training enables to know the realities of the
business and application of theoretical knowledge in practical environment.
Primary data has collected from face to face interview with departmental
heads, managers, and workers. The secondary data has collected through
website of KSIC Industry and documents of the company, annual reports,
T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

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Brochure of the company and a swot analysis is done to find strength,

weakness opportunities and threats of the organisation.
The organization encourages employee participate in the management.
With the help of formation of quality circles and mutual discussion among
the employees the company has been successful in solving work related
problems. There are old technologies and machineries used in production.
And some machines remain unused by the production department. Hence it
has been recommended that the company adapts to new technologies of
production in making work effective and makes proper use of the
machineries without keeping it idle.

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INTRODUCTION
TITLE OF THE STUDY
This study is titled as “AN ORGANIZATIONAL STUDY AT KSIC

(KARNATAKA SILK INDUSTRY CORPORATION)” Bangalore.
OBJECTIVES TO STUDY:
• To know the working of the different departments in the organization.
• To put theoretical knowledge into practical experience.
• To know the growth and present statues of KSIC.
• To know the strength and weakness of KSIC Ltd.
• To know the operating, Manufacturing and Quality maintains of

KSIC.
• To study about the financial statement Of KSIC.
• To identify the problems if any, and to make suggestions.

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SCOPE OF THE STUDY
A well organized effectively formed organization forms the base stone of

every successful business. The project study on organization provides an
excellent opportunity for experiencing and understanding the organization.
This also enables the student to find out the correlation between the theory
and real business. The project helps in developing the internal abilities and
interpersonal skills and thereby encourages the capabilities of the student.
The study helps to find out the working of different.
METHODOLOGY
SOURCES OF DATA COLLECTION

1. Primary Data
Primary data were acquired mainly through direct observation of
various functions in the organization and through interaction and
communication through unstructured interviews with the concerned
department heads and officials of the organization.
2. Secondary Data.
• Manuals
• Past records
• Website
Information is collected to know the organization structure and its working

and SWOT analysis has been done.

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LIMITATIONS OF THE STUDY:
 The study was restricted only for 45 days. Due to time constraint an
in depth study of all the departments was not possible.
 In the study only the general organization study has selected.
 Since the managers were busy with their work schedules it was not
possible to spend more time with them for discussion.
OBJECTIVES OF THE STUDY
1. Societal benefits.
2. Organisational objectives.
 Functional objectives.
 Personal objectives.
3. Functional objectives.
To Study the functioning of all the departments individually in KSIC LTD.,

Bangalore. This study helped me to relate theoretical knowledge with the
practical scenario in the organisation.
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CHAPTER II
INDUSTRY PROFILE
It is said that silk was discovered during 2640 B.C. in China.

Chinese Empress, Ling Shi studied the silkworm and learnt the art of
unwinding the silk from the cocoon and made silk fabric from it. This was
the beginning of the silk industry in China.
Though India is the second largest silk producer in the World after
China, it accounts for just 5% of the global silk market, since the bulk of
Indian silk thread and silk cloth are consumed domestically. Germany is the
largest consumer of Indian silk. The sericulture industry is land – based as
silk worm rearing involves over 700,000 farm families and is concentrated
in the three southern states of Karnataka, Tamil nadu and Andhra Pradesh.
The states of Assam and West Bengal are also involved in the industry to a
certain extent.
The present market context for silk in India is one of

vigorously growing internal demand for silk fabrics, with growth rates of
above 10% per year. It is mostly for traditional (sari type) design and does
not impose sophisticated quality requirements upon the industry. This
situation is likely to continue, unless Indian sericulture is able to provide
sufficient quantities of raw silk at affordable prices. The present trends
represent a limitation to price increases for silk produced in India

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By import from other silk producing countries like China, Brazil, Korea
etc., as well as by substitution with other fibres including by artificial
Silk. It also appears unlikely that the present demands can be met merely by
expanding mulberry area in order to increase cocoon and raw silk
production. Future additional output is raw silk will therefore mostly have to
come from substantial productivity increases, mainly area and labour
productivity.
Currently there is a growing demand for silk fabric among
the growing Indian middle class and young urban consumers. These modern
silk fabrics typically are produced by the expanding power loom weaving
industry. The quality requirements imposed by this trend can only be met by
bivoltine raw silk for conventional power looms. The bulk of today’s world
export demand is almost exclusively based on high graded quality bivoltine
raw silk. If Indian sericulture is unable to generate a substantial production
of bivoltine raw silk, these important market segments will continue to be
lost outside competitors.
The three main market segments offer great opportunity to India’s silk
industry:
i. The broadening domestic traditional demand multi bivoltine

based.
ii. The domestic demand for non – traditional silk fabrics, based at
least partly on non-graded bivoltine rworld bank and a grant
contribution aw silk.

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iii. The vast and expanding international market for raw silk, silk
fabrics and ready made, based on graded bivoltine silk, an export
potential as yet relatively little exploited by India.
In one of the efforts of the Indian Government to promote

the sericulture Industry, the National Sericulture Project (NSP) was initiated
as a national project operational in 17 states in India. The projected funded
by the Central and the State Governments together with an input of foreign
funds, has a credit portion from the world bank and a grant contribution
from Swiss Development Corporation. The project was started in 1989 for a
period of six years with the objectives oriented toward increased production,
improved productivity, quality and equity. One of the critical elements taken
into consideration by the project was the dominant involvement f the
Central and State Government Organisations in the promotion of sericulture.

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CHAPTER III
COMPANY PROFILE
HISTORY
The silk weaving factory in Mysore, presently owned by KSIC,
was established in the year 1912 by the Maharaja of Mysore province.
Initially the silk fabrics were manufactured and supplied to meet the
requirements of the royal family and ornamental fabrics to their armed
forces.
The unit was started with 10 looms and gradually increased
to 44 looms over a period. The looms and preparatory machines were
imported from Switzerland and was the first of its kind in India. After India
gained Independence the Mysore state Sericulture department took control
of the silk weaving factory.
KSIC Ltd was established on 18 April 1980 with assistance
by Government and World Bank scheme under integrated Karnataka
sericulture project. KSIC is the only organisation in the country
commanding the entire gamut of silk production right from the reeling of
cocoons to the weaving of pure silk fabrics, under one roof.
In 1980 the silk weaving factory was handed over to
Karnataka Silk Industries Corporation Ltd., of Karnataka enterprises and is
popularly known as KSIC. The take over was enthused by effecting
modernization and expansion assisted by the World Bank to the tune of Rs.
27.30 crores integrated under Karnataka sericulture project.

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INTRODUCTION
Indian history is waking up to the challenges thrown in by

market economy. To survive in this highly competitive scenario, human
resources play a vital role. An organisation is nothing without its “Human
resources”.
Growing global, liberalization policy, technological
advancement, increased competition, privatization are the characteristics of
today’s economy, which emphasizes the crucial role of managing human
resources for the organisations growth and survival and its growing
importance.
The field of human resources management is in a state of
rapid transition. It is only the successful corporate edge in today’s market
place is their ‘people’, and they should manage their human resource in their
“transition”. Managing human resources is an extremely important part of
making an organisation work well.
Managing human resources means acknowledging that the
humans in the organisation are the most important part of getting thing
things done. The human resource approach assumes that no amount of
clever work with figures, or the latest technical equipment, will deliver
anything unless people agree to work in co-ordination with each other. Thus
is applies to everyone in the organisation.
“Management is the method of effectively utilizing available resources for

the purpose delivering goods service to the maximum satisfaction of
maximum number of people”.

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Mysore is rich for its Royal heritage and Grandeur and it is no

surprise that the silk produced there reflect the traditional splendour through
its rich yet delicate motifs. The name Mysore silk is a befitting tribute to its
ancestry. KSIC the proud inheritor of this royal legacy, has treasured it for
over seven decades, has been producing 100% pure silk with pure gold zari.
We are in the business of manufacturing quality silk

products of varied designs for end user consumption. The products include
finest of designer silk sarees, salwar kameez, shirts, kurta’s, silk dhoti and
men’s tie. The silk products are manufactured in our factory located in
Mysore district of Karnataka state.
The silk weaving factory in Mysore, presently owned by

KSIC, was established in the year 1912 by the Maharaja of Mysore
province. Initially the silk fabrics were manufactured and supplied to meet
the requirements of the royal family and ornamental fabrics to their armed
forces.
The unit was started with 10 looms and gradually increased
to 44 looms over a period. The looms and preparatory machines were
imported from Switzerland and was the first of its kind in India. After India
gained Independence the Mysore state Sericulture department took control
of the silk weaving factory.
KSIC Ltd was established on 18 April 1980 with assistance

by Government and World Bank scheme under integrated Karnataka
sericulture project. KSIC is the only organisation in the

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Country commanding the entire gamut of silk production right from the
reeling of cocoons to the weaving of pure silk fabrics, under one roof.
In 1980 the silk weaving factory was handed over to

Karnataka Silk Industries Corporation Ltd., of Karnataka enterprises and is
popularly known as KSIC. The take over was enthused by effecting
modernization and expansion assisted by the World Bank to the tune of Rs.
27.30 crores integrated under Karnataka sericulture project.

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COMPANY VISION AND MISSION
VISION
“To provide employment directly and indirectly by producing goods,

products and marketing effectively in the market”.
MISSION
“Manufacturing and marketing of Mysore silk sarees”.

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GROWTH AND DEVELOPMENT
The Karnataka Silk Industries Corporation (KSIC) has been awarded

the certificate of Geographical Indication for Mysore Silk, elevating it to a
brand name for its exclusive use. It’s now official; Mysore Silk belongs to
Mysore district.
The Karnataka Silk Industries Corporation (KSIC) has been
awarded the certificate of Geographical Indication for Mysore Silk,
elevating it to a brand name for its exclusive use. Henceforth, all Mysore
Silk sarees sold by the KSIC will come with the logo IPI, meaning
Intellectual property India.
KSIC is also the first state government enterprise to get a

logo from the Geographical Indication Registry (GIR), a Central
government body based in Chennai. GIR was formed to protect the
Intellectual Property Rights for Indian goods under the Geographical
Indication of Goods (Registration and Protection) Act, 1999.
The GIR Certificate is a sign used on goods that have a
special geographical origin and possess qualities or reputation of their place
of origin.
The KSIC also will have the patent rights of Mysore Silk
brand and no other organisation can use the same name for other silk
products. The other products which have been awarded GIR Certificate
include Kanjeevaram sarees, Basmati Rice,
Swiss watches and Dutch Tulips.

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PRESENT STATUS OF THE INDUSTRY
KSIC produces 6,000 sarees every year and, armed with the GIR
Certificate, KSIC now plans to have a distributor in every state.
EXCLUSIVE STATUS
Manufacturers or traders can use the word ‘Mysore Silk’ to
market their silk fabric without KSIC’s nod product must be made in
Mysore district penal action for unauthorised use. Every Mysore silk saree
will carry a logo- Intellectual Property India.
The two pillers of Korean manufacturing sector are textile
industries (KSIC code 32) and machinery, equipment and electronics
industries (KSIC code 38). The output share of textile has decreased from
21.8% in 1970 to 13.7% in 1990 while that of machinery and equipment has
increased from 12.2% to 34.1%.
BRIEF ON PRODUCT
KSIC is the only organisation in the country commending the
entire gamut of silk production right from reeling of cocoons to the weaving
of pure silk fabric of various shades and designs, all under one roof. KSIC
uses only high quality pure natural silk and 100% pure gold zari. The zari
never turnish and will look fresh even over a long period of usage. KSIC is
the only organisation to give guarantee for its zari saree in the form of
embroidered code No. which is unique to each saree.

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CHAPTER IV
ORGANISATION CHART
General Manager PERSONAL

SECRETARY
tor First
Personnel Dy. DY. Purchase Maintenance

Manager and stores eng. Security
Manager Manager
Production Accounts officer Mech.
/Electrical
Labour
welfare Weaving Assistant Asst. Manager Dying Printing
Officer Master casting Master Master
Assistant
Asst. Assistants
Throwing

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ORGANISATION CHART ( T.NARASIPURA

PLANT)
PERSONAL
General Manager SECRETARY
Asst. stores cum

Purchase officer
Asst.
Manager -
Personnel Asst. Purchase Silk Store Maintenance
Officer Special and stores Keeper Mech./Electri
Accounts
Officer officer cal
Officer

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CHAPTER V
FUNCTIONAL DEPARTMENTS
PERSONNEL DEPARTMENT
Personnel management is concerned with people at work and its

aim is to develop good relationship between management and employee.
Personnel management is that part of total management of an organisation,
which specially deals with human resources in respect of
a) Their procurement.
b) Their development.
c) Their motivation, towards the attainment of organisational

objectives.
DEFINITION
Edwin Bb Flippo “The personnel function is concerned with

the procurement, development, compensation, integration and maintenance
off the personnel of an organisation for the purpose of contributing towards
accomplishment of the organisation’s major goals”.

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PERSONNEL DEPARTMENT IN KSIC LTD.
Personnel department in KSIC Ltd. is a very important and clearly

defined department. The department performs the personnel and
administrative functions. It has a direct link with the employees and
understands their needs and wants. The personnel officer is in charge of this
department and under him junior Superintend, junior Assistant Steno
Receptionist, Driver, Peon etc.
FUNCTIONS OF PERSONNEL DEPARTMENT

1. Recruitment and selection
2. Training
3. Provide sound program of salary and wage administration
4. Allowances for the employee
5. Provide maintain safety measures
6. Keep employment records
7. Handle labour problems and employee disputes
DUTIES OF PERSONNEL OFFICER
1. To arrange for appointment of personnel.
2. To arrange recruitment as identified.
3. To comply with all statutory rules relating to personnel and

Administrative matter.

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4. To provide job security, job enlargement.
5. To provide sound promotion policy providing simple scope for

self advancement.
6. To ensure statutory compliances of ESI, PF etc.
7. To collect analyse and present the required data for such

discussion or negotiation between the board of director and
the trade union.
8. To provide guidelines of the security officer for the

implementation of security measures.
9. To attend labour courts and conciliations by the labour and other
departments.
10. To prepare and maintain upgradation, seniority list of all the
employees of the company.

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MANPOWER IN THE KSIC LIMITED
The total strength of the employees in KSIC Ltd in 31/03/2005 was 845
according to the records it was 895 in 31/03 2008.
1. MANPOWER OF KSIC
Category of employees No. of employees
Executive level 9
Middle level executives 17
Other office staff 212
Workers 607
Total 845

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RECRUITMENT
The method by which the company recruits labour is
1. Direct recruitment.
2. Public service commission.
3. Employment exchange.
All employees of the individual corporation and

companies excluding workers are defined in the factories Act and excluding
persons employed in the supervisory or managerial capacity whose basic
wages (starting) excluding DA and other allowance exceeds Rs. 700 are to
be recruited through PSC.
Clerical post such as Steno- Typist, Junior Assistants, Driver, and

Receptionist cum Telephone operator, Maintenance Assistants etc. are filled
up by under PSC recruitments. Managerial supervisory and workers
vacancies are filled up by direct recruitment. The advertisement is published
in the newspapers to fill up the vacancies. The Board of Director will
nominate a selection council to interview and select the direct recruitment
employees.

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TRAINING
Training means to give information or skill through

instructions or practical. It is a method for increasing the knowledge and
skill of the people for a specific job.
“Training is the art off increasing the knowledge and skills of

employees for doing a particular job”.
The Training methods are:

1. On the job training
2. Off the job training
3. Apprenticeship training
ON THE JOB TRAINING
This is a common used method for training the operative

personnel. The workers are trained under the same type of conditions they
have to work in future. On the job he can experience the conditions and
requirements of actual work situations.

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OFF THE JOB TRAINING
Off the job training generally consists of conferences,

seminars, lectures, group discussions, case studies, programmes,
instructions etc.
APPRENTICESHIP TRAINING
In apprenticeship training a worker is appointed as an

apprentice. The company gives apprenticeship training in the following
trades.
a. Electrical
b. Plumber
c. Fitting
For selection or incumbent in cash trade, company seeks the list from the
regional training centre, as per the rules.

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REMUNERATION TO EMPLOYEES
The minority reward paid by the management to worker or an

employee for the performance of the assigned task is called “wages” or
“salary”. Salary is the remuneration paid to non operative staff, salaries are
paid on a monthly basis to office staff, managers, and technical advisors etc.
wages is the remuneration paid to the workers involved in production. Work
and who’s output can be directly measured. Some employees are working
on daily wages.
2. LEAVE POLICIES
STAFF WORKERS
Casual Leave 12 Days -
Earned Leave 30 Days 14 Days
National Holidays 15 days 15 Days
Stick Leave 10 Days 13 Days
Encashment of earned leave is permitted only in a year.

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WELFARE MEASURES
Employees will get PF, ESI, Minimum Bonus and Gratuity

benefits.
BONUS FOR EMPLOYEES
The word bonus denotes an incentive payment to the workers

aimed at enhancing their efficiency and loyalty to their organisation.
Promotion takes place when an employee moves to a higher

than once formerly occupied. His responsibility, status and pay also
increase; the promotions method adopted here is “Seniority basis”.
RELATIONS BETWEEN MANAGEMENT AND UNION
Most of the employee’s opinion is that there is a healthy

relationship between the management and union. So management must take
necessary steps to maintain this good relationship. So there is no problem
from the part of the union.

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ORGANISATIONAL SETUP OF PERSONNEL MANAGEMENT
1. Security
2. Time Office
3. Telephone
4. Vehicle
SECURITY OFFICE
Security officer is the head of the security office and under him
other security guards.
DUTIES OF SECURITY GUARDS
1. To use gate pass
2. Safeguarding factory premises
OFFICE TIME
Under this section is a timekeeper and a clerk. Their duty is

to see that the employee reports in time.

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WORKING TIME
Office staff - 10.00am- 5.30pm
Factory workers - 8.30am- 5.00pm
VEHICLES
The security guards are in charge of incoming and

outgoing vehicles. A separate sheet has kept for the vehicles.
TELEPHONE
The telephone operator is in charge of all the incoming and

outgoing call during office time. Security officer in the gate operates the
calls, which are coming after office hour.

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DEPARTMENTAL CHART
Personal
Officer
Junior
Superintend
Junior
Assistant
Steno
Receptionist
Driver
Peon

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SPAN OF CONTROL
The personnel officer is in charge if this department and under

him junior Superintend, Junior Assistant, Steno, Receptionist, Driver, Peon.
PURCHASE AND SALES DEPARTMENT
In ordinary sense the term purchasing is the procurement of

materialism, machinery and tools on payment. But today purchasing has
acquired new dimensions and such as it may be defined as “the functions of
procurement with a view to reduce the investment, variety and vale of
materials so as to facilitate the standardization and competitive
marketability of the product”.
Functions of purchase department in KSIC
 To maintain regular flow of materials.
 To purchase at a competitive price, the right quality from a right source.
 To ensure higher productivity of men, machine and materials.
 To ensure production of better quality of products at competitive costs.

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Methods of purchasing
KSIC adopt centralized purchasing. It includes purchase of raw

materials, stores, land and equipment. Fund, stationary, supplies, chemicals
etc all bulk purchases are petty purchases are made though this department
except maintenance purchase. Maintenance purchases are made by
administration section.
Procedure in the purchase department
 Receiving purchase requisition:
This stores office as and when purchase requisition or intends are

received from the concerned department. It should be done before two or
three weeks.
 Exploring the source of supply:
The selection of right source of supply is very important from the

point of view of getting the materials in the time and desired quality at a
price. The different categories of suppliers are found out through
advertisement, tender, etc. the quotations are compared with others and from
this the best is selected. The chemicals are purchased by yearly quotations.

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In KSIC, two types of suppliers are found.
Manufacturing suppliers and
Distributors and commission agents.
QUALITY CONTROL
The company has been set up quality control sections of

quality control and development. The company has continues research and
development programmer a results off which, they can identify new product
lines. The quality control ensures the consistent quality products.
OBJECTIVES OF QUALITY CONTROL
1. Continue improvement in operations.

2. Improvement in export turnover.
3. Consumer satisfaction.

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FUNCTIONS OF QUALITY CONTROL
⇒ Quality inspection
Quality of silk and fabrics checked during various stages of production such
as dyeing, weaving, stenciling etc, if the quality of the product is beyond the
standards prescribed then it is rejected.
⇒ PRODUCT DEVELOPMENT
This function includes the development of original products,

modifications etc. factions are done with the tastes and preference of the
customers.
⇒ DESIGNING
Designing of silk products are done by both designers of

international reputes and national reputes. They create new concepts and
trends in the area of weaving color combinations.

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MARKETING DEPARTMENT
Marketing is the performance of business activities that direct the
flow of goods and services from the producer to the customer. It is a system
of interacting business activities designed to plan, promote and service to
existing and potential customers. The main function of marketing is to view
the customer as the very purpose of the business. It emphasizes on
identification of a market opportunity and fulfilling the needs of the
customers. Without marketing there is no consumer and without the
customer there is no use for the product or service the company is
producing.
At KSIC, the marketing department acts as a guide, and lead the
company’s other departments in developing, producing, fulfilling and
servicing products and services for their customers. Communication is vital
and the marketing department typically has a better understanding of the
market and customer needs. The goals and guidelines set by the Marketing
Department are in line with the vision and mission of the company. The
upper management is also involved in and endorses cooperation by all
departments in following and implementing the plan and integrating a
consistent message into all communication channels.
ELEMENTS OF MARKETING MIX
1. Product
Marketing department ensures that the product is of the same grade as
specified by the customers and meets the quality standards.

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2. Price
The prices are based on pricing policies taken by the company based
on the market conditions. The pricing decisions are taken by the Marketing
Department after studying the market conditions and also comparing the
competitor’s price.
3. Promotion
It deals with advertising and sales promotion for the product. Since
the company goes for Industrial marketing department, mainly on electronic
segment, it concentrates on direct marketing as a means of promotion which
enjoys the advantage of two way communication.
5. Place
In this industry the place is not that much important. The production
plant is setup in Mysore.
COMPETITORS
The major competitors in India Kalyan Silk, Chennai Silk, Seemati
Silks, Kanchipuram silk, etc.

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ORGANISATION CHART FOR MARKETING

DEPARTMENT
HOD
MARKETING MANAGER
ASSSSISTANT
MANAGER
MARKETING OFFICER
SALES OFFICER

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PRODUCTS OF KSIC LTD

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Crepe Pallu Zari Stripes Body Plain

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Crepe Pallu Zari Stripes Body Butta,

Crepe Pallu Zari Stripes Body Small Checks,
Crepe Pallu Zari Stripes Body Medium Checks.
Georgete Tissue Pallu Zari
Crepe Tissue Pallu Zari Stripes Body Tissue
Georgete Pallu Zari Checks Body Plain

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Stripes Body Tissue
Crepe Rich Pallu Stripes Body Lines Crepe Pallu Mango Body Plain
Crepe Pallu Zari Butta Body Plain
Crepe Pallu Zari Checks Body Checks
Crepe Rich Pallu Zari Checks Body Plain

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Crepe Pallu Zari Butta Bar Stripes Body Lines
Crepe Rich Pallu Zari Body Checks All Over
Crepe Pallu Zari Stripes Body Lines

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Crepe Pallu Printed Body Print All Over
Crepe Pallu Zari Printed Body Print All Over

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PRODUCTION DEPARTMENT
DEFINITION:
“Production is the making of goods for saleor the rendering of paid

services. The making of goods, however, must not be interrupted too
literally to mean the creation of some material object; we do not so much
make things as make them more serviceable. We create, not material object,
but utility”.
PRODUCTION DEPARTMENT IN KSIC LTD
The production department is largely connected with

manufacturing and its allied areas such as, determination of quality and
quality to be produced, production planning, work analysis, quality control
etc. production department also deals with clerical work relating to various
activities of a production of a finished products, material requisition, stock
records etc. production department is headed by Production Manager. Plant
Engineer, in charge man, Maintenance Assistant and various Supervisors.

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PRODUCTION
Production is concentrated in the existing two plants namely
1. Silk weaving and printing plant (Mysore)
2. Silk filature plant.
1. Mysore- Silk weaving and printing silk products
The Factory is located in the heart of the Mysore city and is

spread over acres. The raw silk yarn Filatures obtained from T. Narasipura
factory and open market are put through various process and quality silk
products are produced for end user consumption. The factory has an
installed capacity of 8, 00,000 Mtrs per annum. The factory is provided with
various high end equipments so as to produce best of silk.
The factory started with 10 looms in 1930 under the rulers of

erstwhile Mysore Kingdom today boasts of more than 159 looms, two
warping machines & Pirn Machines and many number of preparatory
machines. Most of the machines are imported from Switzerland and Japan.
KSIC silk product are well appreciated in the market due to its 100% pure
silk blended with 100% pure gold Zari (65% of silver &0.65% of Gold).The
sarees manufactured are of unmatched quality come in varieties to the
customers tastes viz: Crep de Chine, Georgette, Zari printed crepe silk
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sarees, semi crepe sarees. The sarees are printed or dyed. The sarees come in
a splash of Over 100 different colors and any numbers of design
Combinations some of the design combinations are:
 Emroidery design saree
 Big Butta Pallu saree
 Rich Pallu saree
 Jawar Border saree
 Small Mango saree
 Zari printed saree
 Saree tissue Saree
 Traditional Zari saree
 Checked zari saree
 Mango Border saree
 Sunrise Design saree

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 Butta Pallu saree
 Double Line Checks saree.
Based on the taste of the end consumers the saree are printed and Dyed with
suitable eye catching colors. Various approved quantity of approved
chemicals are added at various stages as per silk manufacturing standards to
retain the luster and quality of the silk fabrics. The sheen and the visual
luxury of the crepes are only to be experienced. At 75 gms per mtr, the
KSIC silk sarees have an unmatched drape. These crepes have delicate
stands of zari interwoven in spectacular designs, in borders and pallu. The
printed crepes are tributes to designing and come with a double advantage
of possessing the crepe’s softness and a vibrant range of designs from floral
to geometric.
To protect esteemed customers imitation of KSIC silks, KSIC have
given a special embroidered number for each one of the sarees with unique
number and hologram.
Other products of silk include soft silks, hankeys, Neck ties,
Stoles, Cravats, dupion fabrics etc.
2. T. Narasipura- Silk filature
Silk Filature refers to raw silk manufacturing unit. The unit

manufactures raw silk yarn and transfer to meet the raw material
requirement of silk weaving factory in Mysore.
The factory is located in T. Narasipura, Mysore district in an area of
approximately 15 acres. The factory is headed by a General Manager. The
factory supplies raw silk yarn to their own silk weaving factory located in
- 46 - MBA 3rd Sem
Mysore. Approximately 1000 Kgs. Of cocoons are purchased daily from

government controlled market depending on needs and raw silk yarn known
as filatures are produced. The purchase is done on almost daily basis as the
purchased cocoon cannot be stored for than 2 to 3 days.
CAPACITY
Installed capacity : 225kgs/day
Actual production 120kgs/day
The factor uses the best technology per say in raw silk manufacturing. It
follows the international silk association standards and has the following
stringent parameters for testing using standard machineries.
a) Renditta-
This refers to amount of Kgs of cocoons required to produce 1 Kg
Of raw silk yarn.
b) Type of Cocoon-
Multivoltaine Coccon : 8 to 8.5 Renditta

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Bi-Voltaine Cocoon : 6.5 to 7 Renditta
Grade of Raw silk yarn
Grade A, Grade 2A, Grade 3A, Grade 4A, and Grade 5A.
International silk association standards to set the following
 Denier- weight in grams/Mtr
 Tenacity
 Elongation
 Cleanness
 Neatness
The silk filature plant uses modern Japanese & Korean Machineries havin
denier control to produce quality silk yarn.
The unit uses two types of reeling
1) Automatic- Japanese Machinery

- 48 - MBA 3rd Sem
2) Semi Automatic- Korean Machinery
The Cocoon purchased from Government control market undergoes various

stages of production viz; Sorting, boiling, & reeling. Silk yarn is passed
through buttons and pulley (Croiser) to maintain tenacity and elongation and
Wound on a reel. Re-reeling is done to make the silk yarn into a continuous
length and convert it into hanks. Reeled yarn is passed through yarn and
made into big reel. The approximate weight of the yarn is 100 to 120 gms.
To maintain quality the silk yarn undergoes various processes like silk
skinning to remove gum spots manually. The unit is in the process of
implementing ISO 9002 Standards.

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FINANCE DEPARTMENT
DEPARTMENTAL CHART
Finance
Department
Account Grade
Account Grade-2
Cashier Junior Assistant

- 50 - MBA 3rd Sem
Financial management is responsible for estimation of

financial resources. Finance is lifeblood of every business. Therefore it is
most important and complicated for business.
Finance department in KSIC LTD is needed by finance

manager and under him accountant, junior superintend and cashier.
FUNCTIONS OF FINANCE DEPARTMENT IN KSIC
1. Finalization of account.
2. Preparation of wage sheet.
3. Maintain cost records.
4. Budget making and set target to be achieved.
5. Set out the financial requirements, loans, income expenditure

etc.
DUTIES OF FINANCE MANAGER
1. Keep the books of accounts of the company up-to-date.
2. To inspect the accounts of the company.
3. To monitor all the financial transaction of the company.

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4. To arrange the reconciliation of the books of accounts of the

company with the books of accounts of the company.
REGISTERS AND BOOKS OF ACCOUNTS
The manager should keep proper books of accounts,

register and other documents. He should maintain proper and accurate
records of accounts of working of the company. Copies of the balance sheet
shall supply free on demand of any members.
The books generally kept in finance department are
1. Cash book
2. General Ledger
3. Bank book
4. Sales general
5. Purchase general

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3. Comparative Statement showing the fabrics sales from

April 2003 to March 2004 (Rs. in Lakhs)
Sl. Months Zari Printed Dress Total Gross Discount Net

No. Material Meters Sales Rs. sales
Rs.
1 April 2835 110 663.40 16860.90 123.49 10.85 112.64
2 May 3667 165 1154.40 22230.40 161.03 16.57 144.46
3 June 2818 115 838.70 16970.20 124.88 11.30 113.58
4 July 3653 247 873.70 22323.70 163.96 22.06 141.90
5 August 5412 336 1250.00 32864.00 243.22 34.83 208.39
6 September 2449 130 649.00 14833.50 106.59 8.45 98.14
7 October 6789 481 3929.00 43914.00 316.19 48.30 267.89
8 November 3811 945 2990.00 29148.00 189.80 26.32 163.48
9 December 15623 2867 8451.50 110146.5 716.77 227.07 489.70

0
10 January 4168 201 21001.2 45030.70 201.69 32.75 168.94
0
11 February 4106 194 7503.95 31153.95 211.88 52.09 159.79

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12 March 12253 645 9996.05 80935.05 562.10 140.61 421.49
Total 67584 6436 59300.9 466410.9 3121.60 631.20 2490.40

0 0

April to March 2005 (Rs. in Lakhs)
Sl. Months Zari Printed Dress Total Gross Discount Net
No. Material Meters Sales Rs. sales
Rs.
1 April 5189 218 3443.20 33181.70 238.43 65.79 172.64
2 May 3214 247 1355.70 20391.20 149.62 25.18 124.44
3 June 2148 159 2291.40 14979.90 97.71 5.26 92.45
4 July 2686 468 1910.50 19257.50 118.3 19.06 99.24
5 August 5068 493 2024.00 32609.50 227.35 25.67 201.68
6 September 4367 199 1265.15 26378.15 191.48 22.17 169.31
7 October 3669 182 1413.00 22593.50 168.51 19.39 149.12
8 November 5023 239 1300.50 30241.50 230.71 26.24 204.47
9 December 3697 113 1026.75 21981.75 163.24 19.02 144.22
10 January 5671 115 180.70 32003.70 259.10 48.79 210.31
11 February 4491 124 1989.75 27372.25 196.46 37.77 158.69
12 March 7896 147 769.65 45006.15 361.53 65.20 296.33
Total 53119 2704 18970.3 325996.8 2402.44 379.54 2022.90

0 0

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April to March 2006 (Rs. in Lakhs)
Sl. Months Zari Printed Dress Total Gross Discount Net sales
No. Material Meters Sales Rs. Rs.
1 April 8087 141 403.70 45658.00 378.2 81.27 297.13

0
2 May 4574 120 419.05 26236.00 206.2 29.62 176.79
2
3 June 3992 123 300..90 22933.40 182.6 26.22 156.53
2
4 July 3946 82 152.75 22306.75 192.4 28.62 163.79
1
5 August 5220 201 109.75 29925.25 261.0 36.89 224.48
8
6 September 4241 145 230.45 24353.45 208.4 29.26 179.15
0
7 October 6836 179 431.50 39014.00 341.0 47.23 294.11
4
8 November 5262 165 5053.50 34902.00 264.3 51.38 213.15
8
9 December 4492 294 5316.30 31391.80 243.8 40.42 203.62
5
10 January 4386 241 419.75 25868.25 229.9 30.59 199.56
6
11 February 3202 149 345.35 18775.85 173.4 23.90 149.96
5
12 March 12259 369 645.35 70099.35 701.1 148.73 552.42
6
6. Statement showing the fabrics sales against the target

during the month of June 2007

- 55 - MBA 3rd Sem
Sales Target Sales Achieved Cumulative

Point (Rs. in Lakhs) Correspond Sales
-ing Sales corresponding
Sl. No. Annual Jun- Jun-07 up to jun during June year up to

07 2006 June 06
Rs. Rs. Rs. Rs.
Exhibitions/ 400 33.00 2358043 277733 2,777,338 6,394,883

1 Institutional
Sales
Bulk buyers/ 100 8.00 11630 549224 - -

2 Distributors
KSIC 3860 258.00 31771104 8285797 29,849,646 66,027,141

3 Showrooms
Consignment 50 4.00 129,465 592, 975 198,462 595,874

Sales
4
Total 4410 303.00 92913049 3282544 32,825,446 73,017,898

April 2006 to till date 2007 (Rs. in Lakhs)
Sl. Months Zari Printed Dress Total Gross Sales Discount Net sales Rs.
No. Material Meters Rs.

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1 April 3517 144 1908.70 22044.20 19,479,773 3082802 16413988
2 May 3555 172 256.05 20754.55 20,712,679 2843725 17880862
3 June 5210 251 328.55 30364.05 32,825,446 5793904 27054445
4 July 4417 99 203.25 25041.25 27,229,934 4136772 23093162
5 August 6679 164 268.70 37905.20 40,716,879 7763246 32953633
6 September 3510 119 399.30 20358.80 21,405,750 3375383 18030367
7 October 7496 259 376.35 43028.85 46,074,549 6324269 39750280
8 November 4400 90 564.65 25259.65 26,916,396 4755502 22160894
9 December 6913 270 646.00 40152.50 41,848,919 9792244 32056675
10 January 5098 179 360.65 29384.15 31,069,217 5632113 25437104
11 February 3553 108 498.85 20634.35 21,544,738 3841628 17703110
12 March 1235 659 1812.39 73378.39 77,264,568 16549915 60714653

3
Total 66701 2541 7623.44 388305.94 407088848 73891503 333197345

April to till date 2008
Sl. Months Zari Printed Dress Total Gross Discount Net sales
No. Material Meters Sales Rs. Rs.
1 April 7119 183 484.80 40,645.8 30,699.65 4,624,029 26,101,258

0 9

- 57 - MBA 3rd Sem
2 May 3942 490 332.70 24,708.7 27,943148 5,006,581 22,962,225

0
3 June 4832 173 482.35 28,009.8 34,270,24 6,670,576 27,629,874
5 2
4 July - - - - - - -
5 August - - - - - - -
6 September - - - - - - -
7 October - - - - - - -
8 November - - - - - - -
9 December - - - - - - -
10 January - - - - - - -
11 February - - - - - - -
12 March - - - - - - -
Total 15893 846 1299.85 93364.35 92,913,049 16,301,186 76,693,357
9. BALANCE SHEET AS AT MARCH 31, 2008

Schedules 2008 Rs. 2007 Rs.
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 58,00,47,000 58,00,47,000
Reserves & Surplus -
Loan Funds:
2 -
Secured Loans
6,01,39,259 6,01,39,259
Unsecured Loans
- 58 - MBA 3rd Sem
64,01,86,259 64,01,86,259
APPLICATION OF FUNDS
Fixed Assets: 3
Gross Block
Less: Deprecation
28,21,71,740 28,08,63,383
Net Block
24,15,79,358 24,42,14,029
Capital Work-in-Progress
4,05,92,382 3,66,49,354
62,49,494
4,68,41,876 3,66,49,354
Investments
4
Current Assets, Loans & 13,100 14,100

Advances:
Inventories
Sundry Debtors 5 10,34,57,618 10,18,35,660
Cash & Bank Balances 6 3,69,68,171 2,69,92,017
Other Current Assets 7 8,35,47,575 1,22,42,766
Loans & Advances 8 25,09,974 2,41,50,475
9 7,85,88,486 7,25,20,462
30,50,71,824 23,77,41,380
Less: Current Liabilities &
Provisions:
10
Current Liabilities
6,51,81,258 5,90,34,194
Provisions
8,92,80,165 6,59,78,179
15,44,61,423 12,50,12,373
Net Current Assets 15,06,10,401 11,27,29,007
Profit & Loss Account 44,27,20,882 49,07,93,798

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64,01,86,259 64,01,86259
Significant Accounting
Policies & Notes on Accounts 16
Balance Sheet Abstract &

17
company’s General Businesses
Profile
10. PROFIT AND LOSS ACCOUNT FOR THE YEAR

ENDED MARCH 31, 2008
Schedules 2008 Rs. 2007 Rs.
INCOME
Sales 11 40,85,44,236 33,59,15,125

Other Income 12 56,30,321 4,47,37,887
41,41,74,55 38,06,53,012
EXPENDITURE

- 60 - MBA 3rd Sem
Materials Consumed 13 14,16,96,819

Operating Expenses 14 22,21,62,180 11,99,40,214
Interest 15 30,892 20,39,06,590
Depreciation 25,84,890 17,92,432
25,14,255
36,64,74,781
32,81,53,491
Profit/(Loss) For the year 4,76,99,776
Before non-recurring 5,24,99,521
item
Prior Periodic Income/ 10,68,000

(Expenditure)(Net) Profit/ 20,726
(Loss) for the year before 4,87,67,776
tax 5,25,20,247
Less: Provision for Fringe 6,94,860

Benefit Tax 8,57,394
4,80,72,916
Net Profit/(Loss) after 5,16,62,853
Tax
Accumulated Loss (49,07,93,798)

Brought Forward (54,24,56,651)
Profit/(Loss) carried (44,27,20,882)

forward to Balance Sheet (49,07,93,798)
- 61 - MBA 3rd Sem
Significant Accounting 16
Policies & Notes on
accounts
Balance Sheet Abstract & 17
Company’s
General Business Profile
CHAPTER VI
SWOT ANALYSIS
STRENGTHS:
1. KSIC is a public limited company.
2. KSIC awarded the certificate of geographical indication for Mysore

silk, elevating it to a brand name for a exclusive use.

- 62 - MBA 3rd Sem
3. KSIC is the only organisation to give guarantee for its zari sarees in
the form of embroider code number which is unique to each saree.
4. KSIC uses only high quality pure silk and 100% pure gold saree.
5. KSIC have a patent right of Mysore silk brand.
WEAKNESS:
1. The technology which is used in KSIC is not up to the standard.
2. There is lack of skilled labour in KSIC Ltd.

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3. There are many highly competitive companies in the market.
4. More than 45 dealers in Bangalore were misusing the name of

Mysore silks.
5. Other silk products are sold in the name of Mysore silks.
OPPORTUNITIES:
1. Exports the silk products to other countries.
2. Providing employment opportunity for rural people.

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3. Employees will get PF, ESI, minimum bonus and gratuity benefits.
4. Giving apprenticeship training for workers.
THREATS:
1. KSIC Managing Director P Vijayan told Deccan Herald that
the certificate would help control misuse of the brand name.

During an investigation in 2004.
2. KSIC found that more than 45 dealers in Bangalore were

misusing the name of Mysore silk.

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3. They continued to market other silk products in the name of

Mysore silk, after which their dealership was cancelled, he
added.
4. The KSIC will also be coding every saree borders.
5. The code will contain the name of weaver and date of weaving.
In case of complaints, the weaver can be traced immediately.
6. KSIC produces 6,000sarees every and armed with the GIR

certificate, KSIC now plans to have a distributor in every state.
CHAPTER VII
FINDINGS AND SUGGESTION:
FINDINGS:
1. Lack of direct feed back.
2. Improper client relationship.
3. Less unique experience.

- 66 - MBA 3rd Sem
4. Control over resources.
5. Lack scheduling own work.
6. The person selected as a supervisor may not be qualified and this may
lead to poor supervision.
7. Change in technology.
8. Misunderstanding between the workers and managers.
9. Lack of raw material supply.
10.Direct feedback.
11.Lack of communication skills.
12.Slow growth of the organisation.
13.Large number of workers.

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CHAPTER VIII
SUGGESTION AND RECOMMENDATIONS
1. DIRECT FEEDBACK: Employees should be able to get immediate
knowledge of the results they are achieving. The evaluation of

performance can be built in to the job (as in an electric spell-checker
indicating the presence or absence of errors) or provided by a
supervisor.

- 68 - MBA 3rd Sem
2. CLIENT RELATIONSHIP: An employee who serves a client or
customer directly as an enriched job. The client can be outside the

firm (such as a mechanic dealing with a car owner) or inside (such as
computer operator executing a job for another department).
3. NEW LEARNING: An enriched job allows its incumbent to feel
that he is growing intellectually. An assistant who clips relevant

newspaper articles for another department.
4. UNIQUE EXPERIENCE: An enriched job has some unique

qualities or features such as quality controller visiting a supplier.
5. CONTROL OVER RESOURCES: For each employee to have

control over his or her resources and expenses. For example, He or
she must have the authority to order supplies necessary for
completing his job.
6. COMMUNICATION SKILLS: Communication skills refers to

clarify of thought correct word usage, grammatical accuracy, proper
delivery of messages, correct spelling and pronunciation and proper
sentences or speeches. An absence of these makes it difficult for the
receiver to understand the message clearly.
7. A qualified person must be selected by an interview.
8. Giving proper apprenticeship training about the new technical

machines to the workers.
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9. Well co-operation between the supervisors to the workers.
10. JIT Quality raw materials should be supply at a time.
11. Good relationship between the producers to the clients/customers.
12. Proper communication must be applied to the organisation.
13. Improving the growth of the organisation like, development of
technology, communication skills, quality raw materials and time

management etc.
14. Unnecessary workers to be reduced.
CONCLUSION
An organisation study was conducted in office and factory of KSIC LTD,

Bangalore, which lasted for duration of 6 weeks. The executives were
highly co-operative in sharing the various functions of the concerned
departments. Primary data was collected through question and answer

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sessions and secondary data was collected by referring to various journals,

magazines and website of the company.
This organisation study helped me to relate theoretical knowledge with the

practical scenario in the organisation. The ethical values and focus on
customer satisfaction of KSIC LTD was highly impressive. The salary
package paid to the employees is less when compare to any other
companies. It manufactures only sarees and silk products. The company
should provide offers and discounts to attract customers. So this project
gives enough information about the company.
BIBLIOGRAPHY
BASIC MATERIALS USED:
 Annual report of KSIC, Ltd.
 Profile of KSIC, Ltd.
BOOKS USED:

- 71 - MBA 3rd Sem
 Drummend Helga, Introduction of
organisation Behaviour .Oxford

University Press, New York, 2000.
 Production Management -- K.
Aswathappa
 Human Resource Management – P.
Subbarao
 Organizational Behaviour -- K.
Aswathappa
WEBSITES:
www.ksicsilk.com
www. info@ksic.com
www. google.com

- 72 - MBA 3rd Sem

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KSIC LIMITED., BANGALORE.

The silk weaving factory in Mysore, presently owned by KSIC,

As part of MBA programme Bangalore University as required to undertaken

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

Brochure of the company and a swot analysis is done to find strength,

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

TITLE OF THE STUDY

This study is titled as “AN ORGANIZATIONAL STUDY AT KSIC

• To know the working of the different departments in the organization.

• To put theoretical knowledge into practical experience.

• To know the growth and present statues of KSIC.

• To know the strength and weakness of KSIC Ltd.

• To know the operating, Manufacturing and Quality maintains of

• To study about the financial statement Of KSIC.

• To identify the problems if any, and to make suggestions.

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

SCOPE OF THE STUDY

A well organized effectively formed organization forms the base stone of

SOURCES OF DATA COLLECTION

Information is collected to know the organization structure and its working

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

LIMITATIONS OF THE STUDY:

 In the study only the general organization study has selected.

possible to spend more time with them for discussion.

OBJECTIVES OF THE STUDY

To Study the functioning of all the departments individually in KSIC LTD.,

It is said that silk was discovered during 2640 B.C. in China.

The present market context for silk in India is one of

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

i. The broadening domestic traditional demand multi bivoltine

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

In one of the efforts of the Indian Government to promote

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

Indian history is waking up to the challenges thrown in by

“Management is the method of effectively utilizing available resources for

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

Mysore is rich for its Royal heritage and Grandeur and it is no

We are in the business of manufacturing quality silk

The silk weaving factory in Mysore, presently owned by

KSIC Ltd was established on 18 April 1980 with assistance

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

In 1980 the silk weaving factory was handed over to

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

COMPANY VISION AND MISSION

“To provide employment directly and indirectly by producing goods,

“Manufacturing and marketing of Mysore silk sarees”.

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

GROWTH AND DEVELOPMENT

The Karnataka Silk Industries Corporation (KSIC) has been awarded

KSIC is also the first state government enterprise to get a

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

PRESENT STATUS OF THE INDUSTRY

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

General Manager PERSONAL

Personnel Dy. DY. Purchase Maintenance

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

ORGANISATION CHART ( T.NARASIPURA

Asst. stores cum

T JOHN INSTITUTE OF MANAGEMENT & SCIENCE, BANGALORE

Personnel management is concerned with people at work and its

c) Their motivation, towards the attainment of organisational