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COMPANY PROFILE

BACKGROUND & INCEPTION OF THE COMPANY

Karnataka soaps & Detergents Limited, a successor to the government soap factory, which is one of the premier factories among the Indian soap industries. After World War 1, there was a slump in the sandal wood export to the west. It dropped a blanket of gloom over business & trading in India. The Maharaja of Mysore turned this threat in to an opportunity, by sowing the budding seeds of KS & DL on the out skirts of Koti forest, near Bangalore in 1918. The project took shape with the engineering skill and expertise of a top-level team with the inspection of the Diwan of Mysore Late Sir. M. Visvesvaraya & with the service of scientists late Sir S.G. Shastry, Professor Watson & Dr. Sub rough. The entire credit goes to Sir. S.G.Shastry, who improved & made the process perfect of manufacturing of sandalwood oil & world famous Mysore Sandal Soap. The factory was started a very small unit near K.R.Circle, Bangalore with the capacity of 100 tons p.a in 1918. Then, the factory shifted its operations to Rajajinagar industrial area, Bangalore in July 1957. The plant occupies an area of 42 acres (covering soap, detergent & fatty acid divisions) on the Bangalore-Pune Highway easily accessible by transport services and communication. In November 1918, the Mysore Sandal Soap was put in to the market after sincere effort & experiments were undertaken to evolve a soap perfume blend using sandalwood oil as the main base to manufacture toilet soap. RENAMING OF COMPANY: On Oct 1st 1980, the Government Soap Factory was renamed as “KARNATAKA SOAPS AND DETERGENTS LIMITED”. The company was registered as a Public Limited company. Today the company produces varieties of products in toilet Soaps, Detergents, Agarbathis and Talcum powder. KS&DL has been built up with rich tradition for the quality of its products. Mysore Sandal Soap is the No: 1 anywhere in the world. The Karnataka state is the original home of the Sandal oil, which uses Original perfume sandalwood in the manufacturing of Mysore Sandal Soaps. It is also known as the “FRAGRANT AMBASSADOR OF INDIA”.

TRADEMARK OF MYSORE SANDAL SOAP The “SHARABHA”

The carving on the cover is the „Sharabha‟, the trademark of KS&DL. The Sharabha is a mythological creation from the puranas and embodies the combined virtues of wisdom, courage & strength, while it is illustrated in its unusual from the body of a lion with head of an elephant. It was adopted as an official emblem of KS&DL to symbolize the philosophy of the company. “Sharabha” mean the symbolized power that removed imperfections & impurities. The Maharaja of Mysore has his official emblem adopted it. And soon took its pride of place as the symbol of the government Soap factory, of quality that reflects a standard of excellence of Karnataka Soaps & Detergents Limited.

MILESTONES OF KS&DL: 1918 - Govt. Soap factory started by Maharaja of Mysore & the Mysore Sandal Soap was introduced into the market for the first time. 1950 - The factory output rose to find terms. 1. Renovating the whole premises. 2. Installing a new boiler soap building plant & drying chamber. 1954 - Received License from government to manufacture 1500 tons of soap & 75 tons of glycerin per year. 1957-Factory shifted its operations to Rajajinagar industrial area. 1975- Rs 3crore synthetic Detergent plant was installed based on Ballestra SPA (Italy) 1981- a. Production capacity was increased to 6000 tons. b. Rs.5 crores Fatty acid plant was installed with technical collaboration from Europe. 1992- The Board for Industrial & Financial Reconstruction (BIFR), New Delhi in December for rehabilitation. 1996- The BIFR approved the Rehabilitation scheme in September. 1999- ISO 14001 Certificate pertaining to Environmental Management System.

2000- In May, the BIFR, New Delhi Declared the Company to be out of the purview. 2004- The company launched Herbal Care Soap.

VISION, MISSION AND QUALITY POLICY:

VISION:   Keeping pace with globalization, global trends & the State‟s policy for using technology in every aspect of governance. Ensuring global presence of Mysore Sandal products while leveraging its unique strengths to take advantage of the current Tech scenario by intelligent & selective diversification.  Secure all assistance & prime status from Government India all Tech alliances. Further, ensure Karnataka‟s pre-eminent status as a proponent & provider of Tech services to the world, nation, & private sectors.

MISSION:      To serve the National economy. To attain self-reliance. To promote purity & quality products To maintain the Brand loyalty of its customers. To build upon the reputation of Mysore sandal soap based on pure sandal oil.

OBJECTIVES OF KSDL:      To serve the National economy. To attain self-reliance. To promote purity & quality products To maintain the Brand loyalty of its customers. To build upon the reputation of Mysore sandal soap based on pure sandal oil.

4. under environment Management system on a written request to its manager (Environment & Policy) . 3.ISO 9002 QUALITY POLICY: KS&DL commits to “customer delight” through Total Quality Management & continues improvement by involvement of all its employees. 6. ISO 14001 ENVIRONMENTAL POLICIES OF KS&DL: 1. Will make available a copy of environment policy. Will comply with all statutory & regulatory requirements pertaining to environment stipulated by both state & central authorities. Is committed to prevent & minimize risks to the environment & conserve natural resources by waging a war against wastes. Would strive & set an example in protection & promotion of an eco-friendly environment. Would invite & implement action to reduce all impacts that are likely to be a source of concern to the environment. Is committed to preserve the natural environment in the production of its quality products to the satisfaction of its customer. 2. 5. Will motivate every employee of the company in preserving the environment by providing appropriate training. 7.

SLOGAN: “Natural products with exotic fragrance”. using only the best East Indian grade Sandalwood oil & Sandalwood soaps in the world. It continued the tradition of excellence for over eight decades. . PRODUCT PROFILE: KS&DL is the true inheritor of golden legacy of India. The products produced at KS&DL are the Soaps. Detergents. Agarbathies and Sandalwood oil.

Mysore Sandal Baby Soap (75gm) d. Mysore Sandal Soap (75gm. Three-In-One Gift Pack –(SJR) 3Tabs (150gm Each) .PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP a. Mysore Sandal Special Soap (75gm) c.125gm & 150gm) b.

Mysore Sandal Gold Soap (125gm) f.e. Mysore Rose Soap (100gm) .

Mysore Sandal Gold sixer 6 Tabs (125gm Each) i.6Tabs (150gm Each) h. Mysore Sandal Classic Soap (75gm) k. Mysore Sandal Herbal Care (75gm) .g. (150gm Each) j. Six-In-One Gift Pack. Mysore Sandal Soap Bath Tablet Trio 3nos.

60gm.500ml. . Wave Hand Wash Liquid Soap. Fragrant freshness. Mysore sandal 2. Ayyappa SANDALWOOD OIL: In 5ml.5kg. Mysore Detergent Cake (1kg/2kg) (1kg/500gms) (250gms) (125gms/250gms) AGARBATHIS: 1.20kg.Bodhisattva 11. Wt 20gm.and 25kg packing. Herbal Care Liquid Soap. 2.2kg.Durga 12. Net wt 100400gms 8. POWDERS: 1. Wave Turmeric Soap. they provide the ultimate washing powder. 1. Mysore Detergent Powder 3. Mysore Sandal Baby Powder: Tender loving care for baby…& Mummy. 2. Nagachampa 9. 10ml. Mysore Sandal Talk: Cooling & Healing. Sansor Detergent Powder 2. Parijata 5. Venkateshwar 6. 300gm and 1kg.20ml.Alif Laila NEW PRODUCTS LAUNCHED: 1.Mysore Jasmine 10. Net. Suprabath 4. Mysore Sandal premium 7. 3. 100ml. Mysore Rose 3. Mysore Detergent bar 4.DETERGENTS: KS&DL also manufactures high quality detergents applying the latest spray drying technology with well balanced formulation of active matters & other builders.

COMPETITORS INFORMATION AND THEIR MARKET SHARE: HLL Godrej P&G KSDL Others 70% 4% 10% 11% 5% HLL Godrej P&G KSDL Others PRESENT STATUS: 1. . The company is striving to develop new perfumes for soaps detergents. Agarbathis – Mysore Sandal 3 – in – 1. dish wash. 3.4. Agarbathis & shampoo. detergent bar & room refresher. 2. The company wants to improve the existing products in terms of quality. The company has entered into shampoo.

Parking 4.INFRASTRUCTURAL FACILITIES: 1. Library 3. Waiting room WORK FLOW MODEL: SILOS (Silos are closed chambers) Soaps Noodles Container Mixer Simplex Plodder It becomes NOODLES Milling It becomes soap ribbons Duplex plodder Cutting Machine Cakes are led to Stamping Machine Wrapping machine Led through the conveyor belt . Canteen facility 2.

92 2. Dept.21 2. ISO 14001-2004 in the year 2000 FINANCIAL STATEMENT ANALYSIS CURRENT RATIO (Rs in lakhs) Year 2007-2008 2008-2009 2009-2010 2010-2011 Current Assets 9117 1091 1239 1201 Current Liabilities 4755 4516 5615 5634 Current Ratio 1. ISO 9001-2000 in the year 1999 5. Geographical Indication GI-2005 4. of Industries and commerce. State Export Promotion Advisory Board.ACHIEVEMENTS / AWARD: 1.13 10000 8000 6000 4000 2000 0 Current Assets Current Assets Current Liabilities . Detergent Plant.42 2. Government of Karnataka. “EXPORT AWARD” 1974-75 2. M/s Chemical Bombay have given 1st price for the year 1980-81 3.

5 0 2007-2008 2008-2009 2009-2010 2010-2011 Current Ratio The current ratio of KSDL for the year 2007-2008.13 times respectively. the company had maintained a high current ratio indicating that the company had engaged itself in under trading.42. But in the year 2008-2009.Current Ratio 3 2.5 1 0. 2008-2009.2010-2011 are 1. 2.2009-2010. 2. .92. Hence it is inferred that the short term solvency of the company is very good. The ideal current ratio is 2times. 2.5 2 1.21.

51 1.29 1.28 1.19 8000 7000 6000 5000 Quick Assets Current Liabilities 4000 3000 2000 1000 0 2007-2008 2008-2009 2009-2010 2010-2011 .QUICK RATIO (Rs in lakhs) YEAR Quick Assets 2007-2008 2008-2009 2009-2010 2010-2011 6156 6839 7219 6759 Current Liabilities 4755 4516 5615 5634 Quick Ratio 1.

The ideal quick ratio is 1:1. It also indicates that the firm is indulged in efficient inventory management by not maintaining huge inventory.20 times respectively. 1.4 1.29. 2008-2009.8 0.6 1.4 0.6 0. 1.Quick Ratio 1. 1.20102011 are 1. Hence it is inferred that the financial liquidity of the organization is very good.51. . hence by cutting the inventory cost.2009-2010.2 1 0.29.2 0 2007-2008 2008-2009 2009-2010 2010-2011 Quick Ratio Inference-The quick ratio of KSDL for the year 2007-2008.

Even though they have demand for their products in both domestic as well as international market. The company has an effective human resources department where in the employees are given excellent packages.LEARNING EXPERIENCE: The learning experience gained by me during the training period was very much practical oriented. detergents. The . as it gives insights into the working environment of an organization. the slogan stands as “Natural products with exotic fragrance”. They are not able to establish themselves as market leaders due to various reasons such as extensive work force. incentives and extensive care is taken by providing facilities such as canteen. I became more aware of the soap industry and the role played by KSDL. which will go a long way in the horizon of our career. incense sticks and industrial products. medical facilities. motivation classes and extracurricular activities. lack of proper distribution network. The company is a leading sandalwood soap Manufacturer in the country. cosmetics. Mostly all the concepts and theories. The training has exposed me to many facts of an organization and also helped me to gain practical knowledge. Its trademark is “Sharabha”. toilet soaps. The way in which departments are classifieds on the basis of their functioning. are applicable practically. the flow of decision process. The overall study of the organization reveals that the company has grown tremendously since its incorporation from 1918. which I studied in the class. non-utilization of installed capacities of manufacturing. I had a great time working on the project. now it has independent units for manufacturing sandalwood oils. competitions of various soaps and detergents and lack of timely decisions. washing soaps.  Structure: I got to know how decisions are communicated. lack of expenditure in the areas of advertisements and publicity. The initially named Government Soap Factory was renamed as Karnataka Soaps and Detergents Ltd in 1st October 1980.

cost of liquidity increases in WCP because of excessive funds in current assets. KSDL adopts latest system. .functions of each departments and its relevance.  System: System plays an important role of supporting and facilitating various activities that are carried out within the organization. how the training needs are satisfied to the employees of different grades. The way in which the departments are inter-linked and coordinated. How the production process is planned and worked out. Supply Chain Management is one of the strategies adopted by KSDL. I found how strategies were formulated to overcome the rigorous competition. Overall the learning experience was quite satisfactory which enabled me to experience a slice of the real and ruthless industry.  Skills: Through skills. through which they are able to reduce the cost of production and increase profitability.  Strategy: Through strategy. The cost of liquidity is the cost of holding insufficient current and it increases with the decrease in WCP. The different on-job and off-job training given to the employees. Strategy is very much essential for the company to survive in the market. How self managed teams perform to achieve the targets set by the management. I got to know how decisions flow from top to bottom in KSDL. COST OF LIQUIDITY OR COST OF LIQUIDITY As we know.  Style: Through style. One has to minimize the total cost of both the costs of liquidity and liquidity in order to determine the optimum level of working capital. The training has exposed me to many facts of an organization and also helps me to gain practical knowledge and know about cooperation & relationship of each department in KS&DL.

Higher the current ratio greater the short term solvency and vice – versa .CURRENT RATIO The net working capital position of firm is indicated by the relationship of its current assets and current liabilities .The first concern of the financial analysis of the liquidity of working capital is used for both short –term creditors and internal management of the firm. Therefore.AGGRESSIVE MODERATE CONSERVATIVE LEVAEL OF WORKING CAPITAL Observing the above. which increase the cost of liquidity. 1. it is better for the company to adopt moderate working capital policy thereby reducing the total cost.higher the obligation .It measures the ability of a firm to pay off its short term obligation . WCP. there is an excessive fund investing in current assets. 1 RATIO RELATING TO LIQUIDITY OF WORKING CAPITAL. Liquidity ratio used to measure the ability of a firm to pay its maturing obligation on time .

42 2.CURRENT ASSETS CURRENT RATIO = CURRENT LIABILITES (Rs in lakhs) Year 2007-2008 2008-2009 2009-2010 2010-2011 Current Assets 9117 1091 1239 1201 Current Liabilities 4755 4516 5615 5634 Current Ratio 1.92 2.21 2.13 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 2007-2008 2008-2009 2009-2010 2010-2011 Current Assets Current Liabilities .

5 1 0. which can be converted into cash immediately or at a short nature. 2.20092010. Hence it is inferred that the short term solvency of the company is very good. The term liquid assets refers to current assets.Current Ratio 3 2. The ideal current ratio is 2times.5 2 1. 2.2010-2011 are 1. the company had maintained a high current ratio indicating that the company had engaged itself in under trading. 2008-2009.LIQUID OR QUICK OR ACID RATIO The quick ratio emphasizes the relationship of liquid assets to current liabilities.21.13 times respectively. 2.42.92. But in the year 2008-2009. LIQUID ASSETS QUICK RATIO = CURRENT LIABILITES LIQUID ASSETS = CURRENT ASSETS – INVENTORY .5 0 2007-2008 2008-2009 2009-2010 2010-2011 Current Ratio ANALIYSIS: The current ratio of KSDL for the year 2007-2008. 2 .

29 1.19 8000 7000 6000 5000 4000 3000 2000 1000 0 2007-2008 2008-2009 2009-2010 2010-2011 Quick Assets Current Liabilities .TABLE -2 QUICK RATIO (Rs in lakhs) YEAR Quick Assets 2007-2008 2008-2009 2009-2010 2010-2011 6156 6839 7219 6759 Current Liabilities 4755 4516 5615 5634 Quick Ratio 1.51 1.28 1.

1. 1.Higher the debtors turnover ratio higher will be the efficiency. The ideal quick ratio is 1:1.29.4 1.Quick Ratio 1. DEBTORS TURNOVER RATIO It is a ratio between net sales and average debtors indicate the efficiency of credit management . NET SALES DEBTORS TURN OVER RATIO = AVERAGE DEBTORS (Rs in lakhs) .20 times respectively.2 0 2007-2008 2008-2009 2009-2010 2010-2011 Quick Ratio INFERENCE The quick ratio of KSDL for the year 2007-2008.51.2009-2010.2010-2011 are 1.2 1 0. 3.29. Hence it is inferred that the financial liquidity of the organization is very good.8 0.6 1. It also indicates that the firm is indulged in efficient inventory management by not maintaining huge inventory.4 0.6 0. hence by cutting the inventory cost. 2008-2009. 1.

20 41.49 8.12 7.Year Net Sales Debtors DTR Debtor Collection Period 2007-2008 2008-2009 2009-2010 2010-2011 12864 15337 17890 18106 2100 2047 2147 2081 6.78 48.39 20000 18000 16000 14000 12000 Net Sales 10000 8000 6000 4000 2000 0 2007-2008 2008-2009 2009-2010 2010-2011 Debtors .69 58.33 8.06 43.

The organization has allowed the credit period more than the ideal Debt Collection Period & the actual Debt Payment Period of the organization which indicates that the organization‟s credit collection period is inefficient & is in alarming situation. . 2008-2009.33. 41 days respectively The ideal Debt Payment Period is 30days.49. 8. 43.2009-2010. 8.Debtors 2150 2100 2050 2000 1950 Debtors Debtor Collection Period 70 60 50 40 30 20 10 0 Debtor Collection Period INFERENCE: The debtor turnover ratio of KSDL for the year 2007-2008.70 times respectively & the Debt Collection Period are 59.2010-2011 are 6. 7. 48.12.

4.42 13.35 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Material Purchases Creditors . NET PURCHASES CREDIT TURNOVER RATIO = AVERAGE CREDITORS (Rs in lakhs) YEAR Material Purchases 2007-2008 2008-2009 2009-2010 2010-2011 5189 8472 9589 9690 Creditors 829 566 722 617 CTR 6.75 16.81 16. CREDIT TURNOVER RATIO (CTR) CTR ratio indicates credit facility enjoying by the firm. calculated as fallows. It is calculated taking into account net purchases and average conditions.

NET SALES WORKING CAPITAL TURNOVER RATIO (WTC) = NET CAPITAL WORKING . It shows efficiency of working capital to generate sales.2010-2011 are 6.36 times respectively & the Debt Payment Period are 54.42. 22. The organization has received the credit period lesser than the ideal Debt Payment Period.CTR 20 15 10 5 0 CTR INFERENCE: The creditor turnover ratio of KSDL for the year 2007-2008.81. 16.75. 2008-2009. hence it can be inferred that the organization has not received sufficient period of credit from its creditors WORKING CAPITAL TURNOVER RATIO (WTC) It is a ratio between net sales and net working capital. The ideal Debt Payment Period is 30days. 26. 16. 22 days respectively. It is expressed as fallows.20092010. 13.

94 2.83 WORKING CAPITAL TURNOVER RATIO 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Net Sales Net Working Capital .Year Net Sales Net Working Capital WCTR 2007-2008 2008-2009 2009-2010 2010-2011 12864 15337 17890 18106 4361 6397 6780 6376 2.63 2.39 2.

40.64.84 times respectively.5 3 2. .WCTR 3.5 2 1.95.5 0 2007-2008 2008-2009 2009-2010 2010-2011 WCTR INFERENCE: The Working Capital Turnover ratio of KSDL for the year 2007-2008. 2.5 1 0. 2010-2011 are 2. 20092010. 2008-2009. 2. 2. The organization is consistent & efficient in the effective utilization of the working capital of an enterprise.

current assets loans &advances a. liabilities b. Loan funds a.BALANCE SHEET AS ON 31ST MARCH 2007 PARTICULARS 2006-2007 Amount SOURCES OF FUNDS 1.. cash and bank Balances d loans and advances (Less) . Fixed assets a. 2. share capital b. sundry debtors c. unsecured loans. Gross block (less) : deprecation b. TOTAL APPLICATION OF FUNDS 1. Investments 3.current liabilities and provisions a. Miscellaneous Expenditure Profit and loss account TOTAL Amount 318221000 15070293 16629120 129995436 146624556 479915849 292406486 233475517 58930969 100 350855723 80873641 312345581 72546525 816621470 280039861 128527890 408567751 408053719 12931061 479915849 . Reserve and surplus. secured loans b. Share Holders Fund a. provisions Net Current Assets 4. Net Block 2. inventory b.

cash and bank Balances d loans and advances (Less) . Deferred Tax Assets 3. Loan funds a. Gross block (less) : deprecation b. Net Block 2. unsecured loans. Miscellaneous Expenditure Profit and loss account TOTAL Amount 318221000 136826041 10365536 89995436 100360972 555408013 296106154 237050829 59055325 30000100 32146548 296012822 146346670 334385423 104944640 881689555 308752365 166770640 475523005 406166550 28039490 555408013 . Share Holders Fund a.current assets loans &advances a. inventory b. 2. share capital b.current liabilities and provisions a. Reserve and surplus.BALANCE SHEET AS ON 31ST MARCH 2008 PARTICULARS 2007-2008 Amount SOURCES OF FUNDS 1. TOTAL APPLICATION OF FUNDS 1. secured loans b. liabilities b. sundry debtors c. Fixed assets a. provisions Net Current Assets 4. Investments 3..

. liabilities b. Gross block (less) : deprecation b. TOTAL APPLICATION OF FUNDS 1. c. Reserve and surplus. share capital b.current liabilities and provisions a. Investments 3. sundry debtors c. Miscellaneous Expenditure Profit and loss account TOTAL Amount 318221000 267719129 1769358 10704608 83506504 190711112 778420599 309623620 239847860 69775760 100 52504866 407452487 163529618 255132910 215257572 50000000 1091372587 246650794 204956560 451607354 639765233 16374640 778420599 .BALANCE SHEET AS ON 31ST MARCH 2009 PARTICULARS 2008-2009 Amount SOURCES OF FUNDS 1. cash and bank Balances d. Fixed assets a. provisions Net Current Assets 4. Exchange Fluctuation Reserve 2. Share Holders Fund a. secured loans b. Net Block 2. Investment in gratuity trust (Less) . loans and advances e.current assets loans &advances a. Deffered Tax Assets 3. Loan funds a. unsecured loans. inventory b.

cash and bank Balances d.BALANCE SHEET AS ON 31ST MARCH 2010 Particulars SOURCES OF FUNDS 1. Deferred Tax Assets 3. Reserve and surplus. liabilities b. sundry debtors c. Exchange Fluctuation Reserve 2..current liabilities and provisions a. Gross block (less) : deprecation b. secured loans b. Investments 3.current assets loans &advances a. inventory b. Share Holders Fund a. c. provisions Net Current Assets 4. Fixed assets a. loans and advances e. share capital b. unsecured loans. Miscellaneous Expenditure Profit and loss account TOTAL Amount Amount 318221000 343479146 1769358 80092400 83506504 163598904 825299050 327262896 241431939 85830957 100 61435241 517605839 172641760 285359727 213953267 50000000 1239560593 292361773 269166068 561527841 639765233 16374640 678032752 . TOTAL APPLICATION OF FUNDS 1. Net Block 2. Loan funds a. Investment in gratuity trust (Less) .

current assets loans &advances a. Reserve and surplus. inventory b. Share Holders Fund a. liabilities b. Loan funds a. loans and advances e. share capital b. c. Investments 3. Miscellaneous Expenditure Profit and loss account TOTAL Amount 318221000 391620693 1769358 83506504 83506504 793248197 336488843 243504890 92983953 100 62571241 525534558 165859183 240314138 189732241 80000000 1201140120 273532955 299914262 563447217 637692903 16374640 678032752 . sundry debtors c. cash and bank Balances d.. Net Block 2.BALANCE SHEET AS ON 31ST MARCH 2011 PARTICULARS 2010-2011 Amount SOURCES OF FUNDS 1. Deferred Tax Assets 3. secured loans b. Investment in gratuity trust (Less) . provisions Net Current Assets 4. unsecured loans.current liabilities and provisions a. Fixed assets a. Exchange Fluctuation Reserve 2. TOTAL APPLICATION OF FUNDS 1. Gross block (less) : deprecation b.