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A

PROJECT REPORT ON

“A STUDY ON ROLE OF COST CUTTING AND COST


REDUCTION”

With Special Reference To

KARNATAKA POWER CORPORATION LTD.


BANGALORE

A Dissertation Submitted In Partial Fulfillment of the Requirement for the


Award of the Degree Of

Bachelor OF BUSINESS ADMINISTRATION


OF
BANGALORE UNIVERSITY

PRESENTED BY
RAMNIVAS B
Reg no: 144KC26029

UNDER THE GUIDANCE OF


RASHMI.G

Asst. Professor

APS COLLEGE OF COMMERCE


BANGALORE – 09
DECLARATION

I here by declare that this project report titled “A ROLE OF COST


CUTTING AND COST REDUCTION” AT KARNATAKA
POWER CORPORATION LIMITED (KPCL) Submitted by me to
the DEPARTMENT OF MANAGEMENT, BANGALORE
UNIVERSITY in partial fulfillment of requirement of BBM. It is a
record of an original and independent study conducted by me under the
guidance and supervision of our respected professor Rashmi.G
APS College of Commerce, Bangalore. This has not been submitted
earlier to any other university or institution for the award of any
Degree /Diploma/Certificate or Published any time before.

Date:
Place: Bangalore (Signature of the Candidate)

RAMNIVAS B
(Reg no: 144KC26029)
ACKNOWLEDGEMENT

I am finding it very difficult to place on record or in words my


appreciation to any one or two individuals, who helped me in completing
this project report. I immensely acknowledge and thank the Honorable
principal of our APS College of Commerce , Bengaluru, For giving me an
opportunity to under take this project work.

I am happy to record my sincere approbation gratefulness and thanks


to my guide Asst Prof. RASHMI.G of APS College of Commerce, Bengaluru.
With whose contribution only, it has been possible for me to prepare this
project report.

I am sincerely grateful to the management of KARNATAKA


POWER CORPORATION LIMITED (KPCL) and particularly for
R. NAGARAJ allowing me the privilege to conduct my project work. And
for their helping at each and every stage of my project work. I am extremely
thankful to my guide Rashmi.G who helped me every much and guided me
for this report.

I am greatly indebted to Faculty of APS College for there


encouragement, my dear and loving parents and friends. I really thank my
family and friends for being with me at every stage of my project and
making me feel confident.

RAMNIVAS B
TABLE OF CONTENTS
Sl.No TITLE OF CHAPTER PAGE.NO
EXECUTIVE SUMMARY 1-4

1 CHAPTER-1 INTRODUCTION 5-19


 Introduction to Cost Cutting. 5-6
 Advantages of cost cutting. 6
 Disadvantages and Limitations of 6
Cost Cutting. 7
 Introduction to Cost Reduction. 7-8
 Advantages and Disadvantages of
Cost Reduction. 9
 Cost Reduction Strategy. 9-11
 Cost reduction is hard or soft. 11-12
 Stages of Cost Reduction. 12-14
 Industry Profile (Overview). 15-18
 Board of directors list. 19
2 CHAPTER-2 RESEARCH 20-24
METHODOLOGY 20
 Title of the Study.
21
 Objectives of the Study.
21
 Scope of the Study.
21
 Statement of Problem.
22
 Plan of Action.
22
 Method of Analysis.
22-23
 Data Collection.
23
 Limitations of the Study.
 An Overview of Chapter Scheme. 24

3 CHAPTER-3 COMPANY 25-44


PROFILE
 History of Company. 25
 Mission Statement of KPCL. 25-26
 Vision statement of KPCL. 26
 KPCL a pioneer 27-28
 Growth Development and Present
Status of KPCL. 28-31
 Awards and Achievements. 31-32
 Concern for environment,
computerization, social
responsibility and generations. 32-37
 Milestones of KPCL. 37-40
 Organization Structure of KPCL. 40-43
4 CHAPTER-4 ANALYSIS AND 45-71
INTERPRETATION OF DATA
5 CHAPTER-5 SUMMARY OF 72-77
FINDINGS, SUGGESTIONS, AND
CONCLUSION

Sl.No Particulars Page

BIBLIOGRAPHY 78

LIST OF TABLES
4.1 Table showing profit and loss account of the 45
company.
4.2 Table showing profit and loss account Ratio. 48

4.2(A) Table showing Behavior of Expenses. 50

4.2(B) Table showing Behavior of Expenses 52

4.2(C) Table showing Behavior of Export Revenue. 54

4.2(D) Table showing Behavior of Gross Profit. 56

4.2(E) Table showing Behavior of Operating Profit. 58

4.3 Table showing Growth Ratios. 60

4.4 Table Showing Generation Performance 62


Comparison.
4.5 Table Showing Revenue Comparison of 64
Different Power Project of the company.
4.6 Table Showing Various Types of Raw- 66
material consumed by the company.
4.7 Table Showing Revenue Segmentation. 68

4.8 Table Showing Cost Activities of the 70


company.

LIST OF CHARTS

Sl.No Particulars Page no


4.1 Chart showing Increase in Revenue and Profit. 46

4.2 Chart showing P&L Ratios. 49

4.2(A) Chart showing Behavior of Expenses with 50

Administration and Employee expenses.

4.2(B) Chart showing Behavior of Expenses with Operating 52

and Selling expenses.

4.2(C) Chart showing Export Revenue contribution to Total 54


Revenue.
4.2(D) Chart showing Gross profit contribution to Total 56
Revenue.
4.2(E) Chart showing Operating profit contribution to Total 58
Revenue.
4.3 Chart showing Growth Ratios. 60

4.4 Chart showing Generation Performance Comparison. 62

4.5 Chart showing Revenue comparison of three financial 64

years.

4.6 Chart showing Various types of Raw-material 66


consumed.
4.7 Chart showing revenue Segmentation in Percentage. 68

4.8 Chart showing Cost Activities of the company. 70