GENERAL INTRODUCTION:

KSE LIMITED company started as KERALA SOLVENT

EXTRACTIONS LIMITED was registered in 1963 and initially started
with a solvent extraction plant entered the solvent extractions industry
setting up the very first solvent extraction plant in Kerala. Today KSE
commands the resources, expertise and infrastructure to manufacture a
range of life stock feed in high volumes, coconut oil from coconut oil
cake and refined edible oil. KSE is the largest manufacturer of
compound cattle fields in private sector in the country. Today KSE has
also entered in the field of milk procurement and processing. KS milk
KS ghee and Vista Ice creams are popular products in Kerala.

1.1 INTRODUCTION TO THE TOPIC

Working capital is refers to execs of current asset over current liability.

working capital is how much is liquid assets that a company has on hand.
Researcher want to study how the company is organized to meet the planned
or unexpected expenses and to study the capacity to meet the short-term
obligation of the business firm. It involves the relationship between a firm's
short-term assets and its short term liabilities.

Whatever may be the organization, working capital plays an important role

as the company needs capital for its day to day expenditure. Thousands of
companies fail each year due to poor working capital management
practices. Entrepreneurs often don't account for short term disruptions to
cash and are forced to close their operation. On the whole Working Capital
Management performs a key funetion and is of top priority for every finance
manager. It describes about how the company manages its working capital
and the various stps that are required in management of working capital.

Cash is the lifeline of a company lifeline deteriorates, so does the

company’s ability in fund operations, reinvest and meet capital
requirements and payments.
Understanding a company's cash flow health is essential in making
investment decisions. Working capital refers to the cash a business requires
for capital requirements for day to day operatons or more specifially for
financing the conversion of raw materials to finished goods which the
company sells for payment. Among the most important items of working
capital are levels of inventory, accounts receivable and account payable.
Any company should have a right amount of Cash and lines of credit for its
business needs at all times.

This study help know company risk and how to manage the working capital
and to know the working capital position of the firm.

Working capital is that part of capital of the firm which is used in short term
operations

Working capital is required in all firms regardless of their size from small
units to big firms needs adequate working capital. It has large proportion in
firm’s investment in its asset.

An appropriate level of working capital is required to be maintained by the

organisation at all the times as deficiency in working capital leads to
breakage in smooth functioning of the firms and excessive working capital
leads to wastage.

The efficient management of working capital is required so as to make

available the right amount of working capital required for the period
through constant checking and through the help of statistical technique and
official judgements.

DEFINITION OF WORKING CAPITAL

Working capital is a financial metric of operating liquidity which describes

the amount of cash tied up in operations and defines the short-term
conditions of the company.
Capital is what makes or breaks a business and no business can run
successfully without enough capital to cover both short term and long-term
needs. Maintain sufficient levels of short-term capital is constantly ongoing
challenge, and in today’s turbulent financial markets and uncertain business
climate external financing has become more harder and more costly to
obtain. Companies are therefore shifting away from traditional sources of
external financing and turning their eyes towards their own organisation for
ways of improving liquidity.

Working capital is expressed in different kinds

 On the basis of concept.

1) Gross working capital.

2) Net working capital

 On the basis of time.

1) Permanent / Fixed working capital.
o Regular working capital.
o Reverse working capital.

2) Temporary / variable working capital

o Seasonal working capital.
o Special working capital.

1.2 INDUSTRY PROFILE

HISTORY OF THE INDUSTRY

INDUSTRY PROFILE

HISTORY OF THE INDUSTRY

Growth in milk sector has oceurred mainly through co-operative efforts.

The milk collection centers started through cooperative effort and collected
milk from villagers in quantities small as liter and gradually started to
provide other services to farmers including education artificial
insemination, and veterinary health support and feeding.

Small farmers became prosperous loan facility where made available

through banks and member farmers share the profits from co-operatives
Cooperative society also set up their own computerized modern and well-
equipped milk processing plants from which they produce market
pasteurized milk, butter oil, chocolate, ice-creams. today the capacity of the
co-operative society is about 0.7million tones per year.

The solvent industry has achieved a phenomenal progress and at present

there are 520 units having overall oil cake or oil sced processing capacity
of mo re than 25.6 million tons per year, which included rice bran
processing capacity of mo re than 9.9 million per year. The solvent
extraction plays the important role in the oil economy. Solvent extraction in
India was started in 1945. It had to struggle for mo ore than 20 years to
establish it.

COCONUT INDUSTRIES IN KERALA

Coconut has an important place in the Indian culture and has been produced here
since time immemorial. Currently, India holds the third place in the list of major
coconut producing countries of the world. Coconut production in India was
95,00,000 metric tonnes i.e. 12,832.9 million nuts in 2005. The area under the
plantation cultivation is around 1.78 million hectares in the country. The states
that are important producers of this fruit and their annual average production
figures are as follows: 1. Kerala (5727 million nuts) 2. Tamil Nadu (3243.5 million
nuts) 3. Karnataka (1209.6 million nuts) 4. Andhra Pradesh (1199.3 million nuts)
5. West Bengal (310.9 million nuts) 6. Orissa (274.8 million nuts) 7. Maharashtra
(273.4 million nuts) 8. Assam (154.3 million nuts) Kerala, the largest producer of
coconuts in India, accounts for around 45 per cent of the country’s total
production. Coconut oil is obtained from the copra of the fruit with 65 to 70 per
cent recovery rate. Regarding the area covered under coconut production, Kerala
again stands first among the other major coconut producing states. The following
Table I gives a picture of coconut production in India from 1991 to 2006. Table I
depicts the trend value of growth in coconut production in India. The trend value
for the years 1991, 1992, 1993, 1994, 2000, 2001, 2003, 2004 and 2005 is more
than the actual value of growth of production. While the trend value for periods
1995, 1996, 1997, 1998, 1999, and 2002 shows satisfactory growth. The future
projections based on the estimated growth in coconut production, is projected at
13,718.93, 13,814.6, 13,934.17, 14,082.32 million of coconuts for the years 2007,
2008, 2009 and 2010 respectively. Export of coconut products A variety of
coconut products are manufactured in the country which have both domestic and
export market. Vinegar and soft drinks are manufactured from coconut water.
Tender coconut water concentrate is another product which is manufactured and
marketed successfully. The know-how for preservation and packaging of tender
coconut water has been transferred to six firms in the country. Nata-de-coco is a
gelatinous delicacy formed by the action of a micro-organism Acetobactor
Xylinium in a culture medium of coconut water. The know-how for its
manufacture is available with the Board. Some of the main coconut products are:
Coconut products 1. Tender coconut water 2. Copra 3. Coconut oil 4. Raw kernel
5. Coconut cake Coconut export from India includes coconut (fresh and dried

CATTLE FEED INDUSTRY

From the beginning KSE Ltd marketcd the buy product obtained from its
solvent extraction division in the brand name of Jersey Copra Cake. Most
of the progress in the cattle feed sector has come about in the past 30 years
only. There are only few cattle feed units in the country especially in Kerala.
The cattle industry of the state has been utilizing the indigenous raw
materialize, coconut cake, which is the residue left after the extraction of oil
from copra which is generally used for industrial purpose and deoiled cakes
is used to make mixed cattle feed.
In Kerala the rotary cake was used as a cattle feed and actually this
excessive oilon cakes reduced the keeping quality of the cake and also upset
the digestive system of the cattle . In foreign countries, the cattle s feed only
with de-oiled cakes and according to the dairy experts, the milk and fact
contend of milk depends solely on the protein contend of the feed.

All these factors stress the importance of having a few cattle field industry
in the state. Thus in 1996, KSE Ltd entered the cattle field industry by
setting up the new plant for manufacturing ready mixed cattle feed During
the last three decades KSE has been acting as a leader in ready mixed cattle
feed industry of the country Today, KSE Limited commands the resources,
manufacture 3 range of livestock d in high volumes, driven by the
commitment to high standards of quality

DIARY INDUSTRY

Most of the progress in the dairy sector has come about in the past 25 years
Till 1970 the intensification of cattle improvement programme through
artificial using gasses of exotic country's milk production increased merely
by one per cent a year. But after the breeds and launch of operation the
started rising rapidly from the mid-1970s

The transformation of India from a milk deficit to a milk surplus country is

essentially the result of an intensive campaign launch by the Govt. and semi
Govt. bodies to promote animal husbandry as a means of generating income
for the landless poor.

Many of these producers have organized hemselves into co-operative under

the umbrella if the National Dairy Development Board (NDDB) which had
been running highly successful animal husbandry promotion program
named Operation Flood. The private sector has now entered into this field
in a big way, capitalizing on the availability of cheap surplus milk to
produce various kinds of dairy products for the domestic and

nternational markcet. Several dairy products like milk powder. whole milk
powder, and infant milk foods of westem origin are now being produced in
India A variety of chees milk drinks ice-creams. pasteurized butter etc.
which, are very common in this country till a few decades ago are now
available in abundance indepartment stores of big and small cities.

The main objective of this programme is to build a viable and self-

sustaining national dairy industry capable of meeting the domestic demand
for fresh liquid milk and milk products and competing in the international
markets.

THE FUTURE OF THE INDIAN FEED INDUSTRY

At the beginning of the twenty-first century. India has a population of 1

billion people. Although the annual growth rate has slowed from 2 to 1.8
percent, the base is so broad that in population are not perceptible. The
population may stabilize by sometime between 2030 and 2040 if all sections
of society support family planning wholeheartedly. The purchasing power
of the middle class is growing (the muddle class accounts for approximately
300 million people) and food habits are also changing. The Indian economy
is growir ng at the rate of 6 to 8 percent per annum The livestock industry
in India is the second largest contributor to gross domestic product (GDP),
after agriculture, and accounts for 9 percent of the total. Consumptionis
likely to increase as follows: per capita milk from 2to 450 g per year, per
capita eggs from 40 to 100 per year and per capita broiler meat from 1000
2000g per year A major change is occurring in India on front. has a model
that between and public sector production, but growth has been affected by
the performance of most of public sector units, rising government costs
fiscal and the of was sct in and has been implemented for the last A major
change is occurring in India on front. has a model that bet production, but
growth has been affected by the performance rising government costs fiscal
and the of was sct in and has been implemented for the last eight to ten
years. This has caused India open up and invite investment from
multinationals, liberalize imports, reduce government expenditure and
remove public sector businesses. It also means that the days of
nationalization, unit controls and restrictions will soon be over thanks to
progress in the country's economy.
ORGANISATION PROFILE

KSE LIMITED

KSE LIMITED is company that manufactures cattle feeds edible oils and
dairy products in Irinjalakuda, Kerala since 1963. It us the market leader in
the cattle feeds industry and has its units in parts of Kerala and a unit in
Tamil Nadu. The company operates in three segments: Animal Feed
Division Oil cake Processing Division and Dairy Division

ture for you!

destinations and its way to deal with achieving those targets. A Vision
Statement portrays the ideal future position of the organization.
Components of Mission and Vision Statements are regularly joined to give
an announcement of the organization's motivations, objectives, and
qualities.

Wintech Corporate Solutions vision and mission statement is as follows;

VISION
“To aid with elite services that leave all our clients blissful with quality,
estimates, and visuals”.

MISSION

“To be recognized as one of the elite organization with the ultimate quality
which we offer in the field of project management solution or in the field
of designs by blending with all the necessary international standards and
process”.