CASE ANALYSIS

Group 3

KUNDIL GROUP: about the company

Established in 1996 largest producer of concrete reinforcing steel bars in the western Indian State of Goa. Group was the first manufacturer to introduce TMT Steel in the region. India's sole exporter of Steel bars to the United States having executed no less than two major exports orders to Global steel giants

The company had total four units operating in goa, comprising of three plants in kundaim and one in usgao.

Kundil Agro has over 200 acres under cultivation in Sattari, Goa, cultivating various fruit and medicinal plants

The companies ethics says

Never to lose right of business ethics amid the fury of competition

Facts related to problem

Inspector in charge of inspection of raw materials & finished goods He had been working for 4 years He new his work well and was experienced They bought raw materials from other companies

Roots that led to the problem

Understanding between supplier and the inspector. Inspector was offered profit buy supplier to grade raw materials higher than normal as he would earn more. Profit sharing ratio = 55/45 Co-workers kept quiet initially.

Noticing of Problem
Final buyers rejected finished goods Inspection report analyzed by senior was not satisfying Co-workers informed senior Physical inspection of raw materials and finished goods Misappropriation of lakhs of rupees

End result
Inspector terminated Loss of valuable buyers Loss of reputation due to fraud

Question
1) What could the company do to prevent such frauds in future

2) How can the company ensure that same incident doesn't occur in other units.

Solution!!

Start j a a

r tati s s l l

t e fi e a e a i s ecti a e re lar a

its. c its. it rec r i facilit if ittee.

it

a s l se es 't a e e.

V ca eras