ORGANIZATION FAMILIARIAZATION STUDY AT

KERALA STATE INDUSTRIAL DEVELOPMENT CORPORATION Ltd

(KSIDC)

Project work submitted in partial fulfillment of the requirements for the award of the degree of Master of Business Administration

Submitted by: ABILASH DANIEL GEORGE CHITHRALEKHA R. RESHMA M. NATH SHILPA BABU

COLLEGE OF ENGINEERING, TRIVANDRUM (AFFLIATED TO THE KERALA UNIVERSITY) Thiruvananthapuram

DECLARATION

We do hereby declare that this project titled ORGANIZATION FAMILIARIAZATION STUDY AT KSIDC is an authentic record of original project work carried out by me at KSIDC, Trivandrum and is submitted to Cochin University of Science and Technology in partial fulfillment of the requirements for the award of the degree of Master of Business Administration. It is a record of original work done by me during my period of study, under the guidance of

Mr.T.A.Krishnamoorthy, General Manager of this organization.

TRIVANDRUM JULY 2011

ABILASH DANIEL GEORGE CHITHRALEKHA R. RESHMA M.NATH SHILPA BABU

ACKNOWLEDGEMENT

We place this work titled ORGANIZATION FAMILIARIAZATION STUDY AT KSIDCat the feet of God Almighty with respect for giving me courage and wisdom to take up the study and complete it in time. We express my acknowledgement and gratitude to Mr.T.A.Krishnamoorthy, General Manager, KSIDC, who gave us the golden opportunity to conduct an organizational study over here. We would like to thank our Principal, Dr. J. Letha and our head of the Department Prof. S. Sivakumar for giving us an opportunity to study an organization. We also express my deep sense of gratitude to all faculty members and friends who have rendered their help.

CONTENTS

INTRODUCTION
OBJECTIVE AND SCOPE OF STUDY AN OVERVIEW ON KSIDC IMPORTANCE OF KSIDC

COMPANY PROFILE
VISION AND MISSION CORPORATE OBJECTIVES DESCRIPITION HEIRARCHY

ROLE AND SCOPE OF KSIDC

Major Areas of Activities KSIDC Service Allied Supporting Service Support Service Major Initiatives

BUSINESS DIVISION OF KSIDC

Industrial and Investment Promotion Projects Financing Recovery and Monitoring Group Company Law Group Finance and Accounting Group Industrial Consultancy and Corporate Planning Statistics and Planning Group Administrative and HR Group Industrial Growth Centers Electronic Development Programme Group

FINANCIAL PERFORMANCE

CONCLUSION

BIBLIOGRAPHY

INTRODUCTION
We are living in a fast changing business world. Therefore theoretical knowledge alone cant fulfill the needs of business school students. As part of MBA course I got an opportunity to visit an organization and study all the functional departments of the firm. The study was conducted in Kerala State Industrial Development Corporation Ltd. The main aim of organization study is to gain an organizational familiarity and in depth knowledge of the functioning of various departments.

OBJECTIVES
To study the organization profile of KSIDC Ltd. To acquire knowledge about functional as well as managerial aspects of KSIDC Ltd. To understand the organization structure and the working of various functional department in KSIDC Ltd. To study and analyze the balance sheet of 2007-08.

SCOPE
The main aim of project report is to cover the functioning of all major departments of KSIDC Ltd... It also includes the organizational structure of the firm. The report helps to know different challenges faced by managers to implement theoretical aspects of business to practice.

AN OVERVIEW ON KSIDC

In recent years Kerala has witnessed numerous developments in the industrial front and our role as the premier promotional agency and facilitator for industrial growth attains special significances since the onus of spear heading the state in the industrial frontier rests on our shoulders. Established way backs in July 1961 to nurture the medium and large scale industrial sector in the state; Kerala State Industrial Development Corporation (KSIDC) pervades each and every industry related activity in the state. KSIDC constitute a group of professionals from various fields including Management, Finance and Law. This team of professionals has exposure in project planning and management over wide range of industrial sectors forms the core development of the corporation. They are closely associated with every project and assists investors in every steps. A nodal agency for foreign and domestic investments in Kerala, KSIDC provide support for investors. The incentive schemes of the state are processed and constant interaction between the government and industrial sector is facilitated so that timely and appropriate support is given to the industry. KSIDC advice the state government on key facts of the states industrial policy and organizes promotional campaigns both in India and abroad. Strategic alliance with leading management consultants, venture fund managers and financial institutions enable them to provide value added service for industries.

KSIDC- POINTS AT GLANCE

The state one and only agency for industrial development and promotion a company fully owned by the government of Kerala. Formed in 1961 with the objective of promoting, stimulating, financing and facilitating the development of large and medium scale industries in Kerala. Promoted 650 projects with an investment outlay of Rs 5155 crores providing employment to 72500 persons as on date. KSIDC, as a facilitator and financier for industries, offers wide ranging assistance in industrial promotion. The key areas of focus include: Identification of Investment Ideas Translating ideas into concrete proposals Feasibility Study, Project Evaluation Financial Structuring, Loan Syndication Assisting in Central and State Govt. Clearances Development and Administration of Growth Centers Industrial and Infrastructure development

Kerala venture capital fund private Ltd (KVCF) formed in association with Kerala Financial Corporation (KFC) and Small Industrial Development Bank of India (SIDBI) is dedicated to investing in higher end sectors like Information Technology and Bio Technology.

IMPORTANCE OF KSIDC IN CURRENT BUSINESS SCENARIO

Kerala has everything it takes to setup an industry. Strategic Location, Easy Accessibility, Excellent Communication Network, Manpower but it has not been able to leverage these strengths to the advantage of the productive sector, in particular the industrial field over the last four and half decades of development planning. The poor performance of the economy is usually attributed mainly to sluggish growth in the industrial sector and in its contribution to Gross Domestic Product (GDP). Overall the industrial Climate in the state is marked by low productivity and low efficiency and absolute technological application. The Kerala State Industrial Development Corporation (KSIDC) is the premier industrial and investment promotion agency of the State Government Established in the 1960s. KSIDC has been restructured to take on the task of developing the industrial economic and social and infrastructure in the state. The new mandate of the KSIDC includes the identifying the infrastructure need of the state, Structuring projects to bridge the gaps of thereby spear handing a balanced growth of the core competencies of the state Via physical and social infrastructure. Innovative steps to achieve this mission have been taken already. The agency has also been entrusted with the implementation of Industrial Growth Centers. A Central Government Initiative for the development of industrially backward cities. KSIDC as a facilitator and financier for industries offer a wide range of assistance in all their areas.

COMPANY PROFILE

Kerala State Industrial Development Corporation (KSIDC), Kerala premium industrial development and financing institution was set up on 21 st July 1961. Kerala State Industrial Development Corporation (KSIDC) fully owned by Government of Kerala has its head office at Trivandrum and its branch at Cochin. KSIDC was founded with the basic objective of stimulating, facilitating, developing and assisting medium and large scale industries in the state. The present functional areas of KSIDC pervades each and every industry related activity in the state from advising the State Government on the key facets of the States Industrial policy to organizing promotional campaigns on behalf of the State Government with in the country and abroad. Kerala State Industrial Development Corporation (KSIDC) provides loans and equity shares to the entrepreneurs. They provide financial assistance to projects with an outlay of two crores. Kerala State Industrial Development Corporation (KSIDC) is one of the biggest team of venture managers in Kerala. It constitute a multi disciplinary professional group consisting of engineers, post graduates in business management, finance specialists, law experts, with exposure in project planning and management over a wide range of industrial sectors. KSIDC has well qualified manpower from multi-disciplinary background and work oriented terms deal with clients to satisfy their requirements. KSIDC is the investors industrial helpline in Kerala. It facilitates constant dialogue between Government and Industry. So that timely an appropriate support is given to the industry. KSIDC is the processing agency for government incentives scheme.

Kerala is the first state to introduce the Single Window Clearance System with statutory backing and KSIDC has been designated as the nodal agencies for all Government Clearances for state level for medium and large scale industry.

VISION AND MISSION

VISION Build lasting relationship through quality service, investors focus industry insight and timely finance solutions. KSIDC is an organization with a social obligation. The expectations of the state are to be fulfilled. The purposeful plans to industrialize the state on the part of the Government of Kerala cannot be achieved without the pro-active interference of KSIDC. There have been a lot of changes in the industrial policies in Kerala, with the liberal policies. Foreign investment is an important factor. Now KSIDC plays an important role of inviting foreign investors in the state of Kerala Global Investors Meet was organized with this intention. KSIDC has well defined vision expressed through this one line statement, To be a pro-active institution in the State of Kerala and be the channel of investment. MISSION To promote, stimulate, finance and facilitate the growth of large and medium scale industries in the state.

KSIDC is the government agency which aims to become a leader of change in Kerala. They have kept an important pace with the latest of the corporate change and intend to effectively utilize knowledge and expertise to create a change in the investment scenario of the state. The KSIDC is the Government agency with a mission to: Develop medium and large scale industries. Promote foreign investment in Kerala. Help to formulate Government policy.

CORPORATE OBJECTIVES

Promote establish and execute industries, projects or enterprises which in the opinion of the company are likely to promote or advance the economic development of Kerala. Identifying investment opportunities which are necessary for the growth of infrastructure which will aid investors choose Kerala as a suitable place for investment. Use modern management concepts to formulate policies for Industrial Development. To support eligible entrepreneurs to put up business ventures and support them financially. To aid assist and finance either by term loans share capital and or in any other manner technically/ professional/ research and development

institutions which will promote the overall economic development and industrialization of the state of Kerala.

DESCRIPTION HIERARCHY

KSIDC has a term of managers to carry on the duties of the organization through a combined effort. The Board of Director is the head of the corporation. It is in control of both the Trivandrum and Cochin centers. The center at Trivandrum and Cochin do the same function but they operate in two geographical divisions. The Managing Director is the official head of the organization is usually an IAS officer of higher rank. The general managers are in charge of industrial and investment promotion, Finance, Legal, Administration and Projects respectively. The Deputy General Manager (DGM), the Assistant General Manager (AGM), the Manager(Mgr), The Deputy Manager (DM) and the Assistant Manager (AM) from the rest of the hierarchy.

The management levels are assisted by a good team of qualified supporting staff that really carries on the basic functions of the operations.

ORGANIZATIONAL CHART

ROLE AND SCOPE OF KSIDC

Major Areas of Activities

Identification of project, viable project ideas, feasible areas for investment. Finding out suitable entrepreneurs tie up for investment. Assisting entrepreneurs in locating suitable land and manpower for the project. State level convener of Single Window Clearance Mechanism. Organizing exhibitions and seminar, heading business mission abroad, entrepreneurs promoting products and service of the state. Providing loan finance and share capital assistance for implementing projects. Providing infrastructure facilities to house industries of similar nature. Monitoring the growth and development of industrial units. Be the prime industrial promotional agencies of the state government and promote the state as an investment destination. Conduct a series of seminars on industry research linkage and bring out a directory of R&D institution, scientists, Industrial and tourism directory etc. Attracts new business enterprises to the Industrial Growth Center (IGC) through effective marketing.

KSIDC SERVICES

Identification of investment ideas Translating ideas into concrete proposals Feasibility study, Technology sourcing, Project evaluation Financial structuring, Loans syndication and Equity stakes Ensuring governmental clearance Total project management support Development and administration of growth centers

ALLIED SUPPORT ING SYSTEM In addition to primary support provided to entrepreneurs, KSIDC extends a whole range pro-investor service, which include a) Single Window Clearance System Paving for the clearance system ensures the prompt issuing of relevant license and certificates. This arrangement ensures a one stop solution point for the investor with KSIDC, avoiding all bottle necks. A final clearance for all new projects either approval or rejection is given with in a specific time period from the date of submission of application as per the system. The State Board headed by the chief secretary shall issue clearance with a time frame of 45days, since the receipts of application for an investment proposal. KSIDC has been designated as the single contact point of the board. The board has statutory powers to enforce its decisions.

b) Venture Capital Financing In a bid to encourage entrepreneurship in IT, Biotechnology and allied sectors, in KSIDC association with SIDBI and KFC has established venture capital funding as an alternate financial source with a corpus of Rs 20 Crores. c) Capital Subsidy Processing KSIDC is the operating agency for processing and disbursement of state investment subsidy for its assisted units. d) Sales Tax Exemption Eligibility Certificate The corporation also issue eligibility certificate for sales tax exemption for medium and large scale industries OTHER SUPPORT SERVICE 1) Equipment Re-finance 2) Technology data bank with asses to national and international data networks

OTHER MAJOR INITIATIVES a) Industrial Growths Centers (IGC) Industrial Growths Centers with built up infrastructure, to take the form of mini industrial townships are under construction across the state- Growth Centers of KSIDC are at Kannur, Kozhikode, Malappuram and Alapuzha. Built up infrastructure in these centers will include standard factory modules, power and water connections, transportation and communication facilities housing etc.

The allotment of the plots in the Industrial Growths Centers comprise of the following designs out rights sale, Hire purchase schemes, Equity Participation, Short Term Lease, Rentals.

b) Special Financial Package for Industry

Considering the tremendous potential for the IT industry in the state, KSIDC evolved a special financial package to promote the sector.

1) New IT units are eligible for an investment, subject to a maximum of Rs 25 lakhs. KSIDC will process and release the eligible against this. 2) 75% of the eligible subsidy is included in the means of finance as subsidy Loans, to reduce the minimum promoters contribution in the project. The subsidy loan is given at the term loan rate, for a period of 1year and will be adjusted against subsidy released from Government. 3) Units are eligible for an initial moratorium up to 2years as per the special package.

BUSINESS DIVISION OF KSIDC

An Overview KSIDC is one of the biggest team of venture managers in this part of India. There departments are multidisciplinary professional group with exposure to wide

ranged industries.

Engineering graduates reporting different terms corporate

finance specialist, Business Management graduates corporate law experts and economists add to the brain power in the organization. There departments have informal links with several leading management consultancy groups. More over there is an amassed knowledge wealth of over forty years of professional experience in project planning and management.

There are various departments in KSIDC.

1. 2. 3. 4. 5. 6. 7. 8. 9.

Industrial and investment promotion (I & IP) Project Financing, Recovery and Monitoring Group. Company Law Group. Financial and Accounting Group. Industrial Consultancy and Corporate Planning Statistics and Planning Group. Administration and Human Resource Group Industrial Growth Centers. Electronic Data Processing Group. PROMOTION (I & IP)

1. INDUSTRIAL AND INVESTMENT

The role of KSIDC as an apex organization for investment promotion in Kerala. This group provides ideas venture counsels, assistance with statutory approval. Liberalization of commercial banks, KSIDC should take up larger role than financing of project. The formation of this division

will be helpful to play a meaningful role in this industrial and investment promotion in Kerala. Function of this Department 1. Act as a single point of contact for state level clearance and license of medium and large scale project. 2. Market specific investment opportunities to promoters with in and outside the country and solicit investment proposals from potential entrepreneur. 3. Interaction and follow up with foreign mission visiting India for Investment promotion and regular interactions with corporate groups and potential entrepreneur. 4. Handle the industrial and investment promotion activities of the corporation. 5. Maintaining interactions links with NRI Business man / Business group directly and through the channels of Indian investment centre for investment promotion. 6. Co-ordinate activities relating to the single window clearance system of corporations. 7. Participates in specialized exhibitions and fairs for investment promotion within and outside the state. 8. Planning and implementation of advertisement or public relations campaign for Kerala as an investment destination and KSIDC in particular close interaction with foreign or domestic promotion agencies such as, Singapore Trade and development Board,

Indo-German Investment promotions service CDC, IIC etc.

Investment Promotion Board (IPB) The newly devised, fast truck mechanism for facilitating preliminary project clearance, IPB is an empowered committee, consisting of department secretaries and headed by the Chief Secretary. IPB accords preliminary clearances for project and performs the junctions of an empowered committee of the government. The managing director of KSIDC has been appointed as secretary to the government and has been designated as member secretary of the IPB. The Investment Promotion Board under the Chief Secretary of the State is a more effective systems in promoting new investment than the single window system existing elsewhere in the country. 2.PROJECT FINANCING, RECOVERY AND MONITORING GROUP

This group comprises Engineers and Manager and Chartered accounts with extensive experience and expertise in setting up large projects. This group is mainly aimed in recovering the loans advanced to This group has sub-groups of

companies or clients together with interest.

technically self sufficient manager with expertise in specific industry categories. The detail about the loans and interest to be attained is given to Recovery Group by the project Appraisal Group. Each project taken by KSIDC will be assigned to a project group headed by a senior level executive project partnerships, preparation of techno-economic feasibility reports, site selection, tying-up infrastructural support, selection of plant and machinery, time-bound project implementation etc. This group reminds the companies of payment that has become due and collecting the dues from them. This group also recommends for various coercive actions to be taken against defaulting clients. The coercive actions are aimed at threatening the clients so that they are regular in payments.

Functions
1. 2. 3. 4. Project Appraisal and Sanction Disbursement of Loan Recovery of Loan Business Development Activities.

3. COMPANY LAW GROUP

This group is headed by company secretary. The other officer in the group is a legal expert venous documentation and agreements to be entered into with the promoters are being prepared and executed by this group. This group

provides support and counsel of company incorporation, Collaboration Agreements, Preparation of Legal Documents, Statutory Compliance Corporate Legal council. It help to provide securitization for the financial products like term loan, short term loan, equity capital, corporate loan, equipment refinance and to defend cases on behalf of KSIDC. The low experts are well experience to lead there corporation in legal matters.

Functions
A project after appraisal by the project group sanctioning of loan by the board of directors and acceptance by the private party, reaches the legal department. Legal department scrutinizes the documents submitted and check the sufficient of securities before loan disbursement. 1.

Scrutiny of legal documents

a)

Title scrutiny for land clearance, deed deposited and mortgage created.

b)

Registration certificate (for knowing nominal capital, Borrowing power)

2.

Site Inspection
Inspecting the site and checking the land documents against the

village records. 3.

Documentation Process
A document which contain the agreement regarding. a. b. c. d. e. Loan agreement or acceptance Deed of hypothecation. Personal or corporate undertaking. Declaration or affidavit by the promoter. Guarantee documentation as per the board directive.

4. FINANCE AND ACCOUNTING GROUP

The group is headed by a Deputy General Manager who is a qualified chartered accountant. Accounts and other financial matters like IDBI refinance etc. are managed by this group. This group helps the industrialists to arrive at the best mix of finding and sourcing of funds from KSIDC and else where. The group

consists of Chartered Accountants, Cost Accountant and Supporting Staff. The service include financial structuring investment Banking, arranging equally from KSIDC, Central Financial Institutions and Public issue, Loan Syndication, Bought out Deals. Acquisitions and mergers, working capital sourcing, public issue

management equipment leasing, venture capital management.

Functions
In this group there are mainly two functions. 1. 2. Financial function Loan function.

1.

Financial Function The financial section performs the accounting work of KSIDC as an

organization. 2. Loan Function The appraisal department performs assessment of projects and financial and accounting department does the disbursement of the loans and nursing of the projects. There functions are performed for term loan and equity participation. 1. Arranging funds for KSIDC through central for financial institutions banks etc. 2. 3. Keeping account of all corporate loans. Recording and maintaining internal accounting records which who includes employees salary, provident funds, loans etc.

5. Industrial Consultancy and Corporate Planning

KSIDC has formed a consultancy division, KSIDC Consulting Service (KCS), to offer project consultancy across various sectors in the State. KSIDC offer total project consulting services in the fast paced dynamic environment of our country. The consultancy division will capitalize on KSIDCs expertise, gained over the last 47 years by associating with more than 650 projects in the State. KCS will offer total project management services, including identifying opportunities for new business, expansion and

diversification, project report preparation, market survey, technology tie-ups, turnkey project management services and project escort services. Kerala is currently experiencing rapid growth in Tourism, Biotechnology, IT/ ITES and Health Care sectors. KSIDCs domain knowledge in industrial promotion and development, infrastructure development and project financing will be on call for the division to deliver quality services, mitigate project risk and provide a single point of accountability for projects.

6. STATISTICS AND PLANNING GROUP (SPG) The SPG is the single point source for information regarding the different aspects of investment in Kerala. It closely monitor policy changes at the State and National levels to maintain an updated information system for the benefits of industrial investors. The memorandum and Article of Association of the

Corporation it can function no only as a financing agency but also as a promotional agency to set up industrial units in the State.

FUNCTIONS This division of KSIDC acts as the Date Base Manager of both KSIDC and Kerala State. The Main activities are, 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Statistics Planning Division with Secretariat and State Planning Board. Interpellation. Reports Support Publication Press Release Library work and service Documentation Training, Recruitment of Library and Computer Professionals. Store General Enquiry.

7. ADMINISTRATION AND HUMAN RESOURCE GROUP Administration and Human Resource Group has got for finding out the correct personnel, giving training etc. Despite the excellence of the technical and managerial personnel available in Kerala. It is often not too easy to obtain the required talent without some effort. This group is a functional pivot within the organization. The administrative process within the organization is done by the

Administrative Manager. The HRG provides assistance to the corporation in the selection of personnel training programmes, counsel on statutory regulations and development of compensation packages. HUMAN RESOURCE FUNCTION 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Appointment Promotion Retirement Sanctioning of leave Enforcing Discipline Maintenance of Personal files and services. Wage and Salary Calculating Increment Granting loans Maintaining statutory requirements Employee welfare.

ADMINISTRATIVE FUNCTIONS 1. 2. 3. Establishment Maintenance Acquisition & Distribution.

8. INDUSTRIAL GROWTH CENTRE Industrial Growth Centre (IGC) is a joint Industrial Infrastructure Project of Government OF India (GOI) and Government of Kerala (GOK). The project is aimed at the development of industrially backward districts of the State. In Kerala there are four Industrial Growth Centre located at Kannur, Kozhikode, Malappuram and Alappuzha Districts. The main objective of the scheme in to acquire land and after developing the basic infrastructure facilities water required for industries standard like Roads, factories,

Telecommunications,

supply,

power,

design

Administrative buildings etc. and allot them industrial of plots and built up area to prospective entrepreneurs. 1. INDUSTRIAL GROWTH CENTRE - KANNUR Area Acquired Location : : 264 Acres Valiyavelicham,Koothuparamba, Kannur Nearest Airport : Kozhikode 120 Kms. Nearest Port : Mangalore Port 110 Kms Thalassery Station 21 Kms. Light Engineering Industrial Rubber International Airport

Nearest Railway Station : Best suited for :

based products, Food processing, Textile, Garments etc. INFRASTRUCTURES CREATED a) Water Supply Scheme

Source of water:

Irukadal River which is about 6 kms away from the site.

Construction of intake well, laying of pipelines, Overhead Tank, 5MLD capacity water treatment plant, Diesel generators sets and pumping stations etc. completed in all respects. Work for the supply and commissioning of Electrical Installations & Auxiliary Equipments for power supply arrangement is also completed. b) Roads Construction of Internal road of length 2.15 Kms with in the Growth Centre is completed in all respects. Works for the widening of the approach road from Koothuparamba to Valyavelicham extending to about 7 Kms is progressing fast. Land to an extend of 6.3894 hectares have already been acquired by Revenue Authorities and handed over for road widening. c) Buildings An administrative Block Building with 1596 square meters has been completed for the operation of common facilities. Electrification, water supply and sanitary works of the building have also been completed. d) Power Works relating to construction of 630 KVA substations, erection of Transformer & Allied works have been completed and KSEB has allotted the required HT/LT power connection of the IGC.

2. INDUSTRIAL GROWTH CENTRE - KOZHIKODE

Area Acquired Location Nearest Airport

: : :

308 Acres Kinalur, Kozhikode Kozhikode 50 Kms. International Airport

Nearest Port

Mangalore Port 270 Kms Koyilandy Station 22 Kms Food, Education, Sports and Healthcare related projects.

Nearest Railway Station : Best suited for :

INFRASTRUCTURES CREATED a) Water Supply Scheme Source of Water: Own pond constructed in the Growth Centre. Lying of Water Supply Lines, Overhead Tank 1.10 MLD Water Treatment Plant, Pumping Station, etc. have been completed. Electrification works of water Treatment Plant has also been completed. b) Roads Construction of Internal roads having a width of 10 meters and length of about 3 Kms within the Growth Centre has been completed. Land Acquisition works for the approach road from Vattoli junction to Kinalur is in advanced stage land to an extend of 2.80 hectares has been acquired

by Revenue Department of Kerala and handed over for widening this approach road to IGC. c) Building An Administrative Block Building with 1964 square meters has been completed for the common facilities centre. Internal Electrification works of the building have also been completed. An industrial complex with 3888 square meter has been constructed for accommodating small and medium enterprises. The electrification works of this building have also been completed.

d)

Power Works relating to construction of 630 KVA substation, Erection of

Transformer and cabling works have been competed. required HT/LT power connection to the IGC.

KSEB has allotted the

3. INDUSTRIAL GROWTH CENTRE - MALAPPURAM Area Acquired Location Nearest Airport : : : 258 Acres Panakkad Village, Malappuram Municipality Kozhikode 30 Kms. Nearest Port : Mangalore Port 200 Kms Parappanangadi Station 25 Kms International Airport

Nearest Railway Station :

Best suited for

Food processing, Educational, Sports, and Light Engineering Projects.

INFRASTRUCTURES CREATED a) Water Supply Scheme Source of water: Kerala Water Authority has agreed to give 3 MLD water to IGC drawn from Kadalundy River. Arrangements for water supply through over head tank and laying pipe lines including installation of pump sets are under way. One Bore well has been installed for domestic water supply yielding about 50 cubic metres per day. b) Roads Construction of Internal roads of length about 3.56 Kms with in IGC site has been completed. The existing approach road to IGC site is in a good condition. c) Buildings An Administrative cum canteen Block Building with 1125 Sq. meters has been completed for the accommodation of common facilities, Internal Electrification & water supply work of the building have also been completed. Provision for the office, bank and canteen also provided there in. d) Power Works relating to construction of 630 KVA substation, erecting of Transformer cabling works have been completed KSEB has allotted the required HT/LT power connection to the IGC. 4. INDUSTRIAL GROWTH CENTRE - ALAPPUZHA Area Acquired : 270 Acres

Location Nearest Airport Nearest Port

: : :

Pallippuram, Cherthala. Kochi International Airport 50 Kms Kochi Port 35 Kms. Cherthala Station 10 Kms Coir clusters, Marine Based, Silica, and Cement based projects. projects, Educational, Engineering

Nearest Railway Station : Best suited for :

An Industrial Complex (Tower Block) with 3888 Sq. meter has been constructed for accommodating small and medium enterprises. electrification works of this building have also been completed. An Administrative Block Building with 1964 sq. meters has been completed for the common facilities centre. Negotiations are underway with police Internal

department and TMC Group of companies at Cherthala for setting up a modern training college and a medical college respectively. The combined requirement of land for the above projects is around 183 acres. MARKETING OF THE IGCs Effective rapport is maintained with the prospective entrepreneurs and road shows are conducted in association with other developmental agencies like KINFRA and DIC to promote there IGCs. Co-marketing concept also has been invoked. Brochures and internet are also and as viable media for marketing. FUND REQUIREMENT & ALLOTMENT Fund requirement for the year 2004 05 is to be the tune of 14 crores to meet the cost of land & development around Rs.14 crores for 2005 06 & 18 crores for 2006 07. An amount of Rs.46 crores is provided to IGCs for the next 2 years in 2004-06. Other 30 crores are to complete the existing pending works at

the Kannur and Kozhikode IGCs.

Extra allocation of around 16 crores is

envisaged from the government to complete this project. PRICING SCHEME FOR ALLOTMENT OF PLOTS The pricing schemes for allotment of plots in the Industrial Growth Centre generally comprise of the following designs.

a)

Outright sale:

Against down payment of price of land fixed by KSIDC

on the basis of actual cost incurred on the project which are as follows. IGC Kannur : Rs.5.16 lakhs per acre Rs.4.33 lakhs per acre Rs.4.48 lakhs per acre Rs.4.17 lakhs per acre

IGC Kozhikode : IGC Alappuzha : IGC Malappuram :

b)

Equity partnership:

Under this scheme, KSIDC will make equity

contribution in the new units coming forth in IGCs to the extent of actual cost of land required in the projects. Through this, the promoters can reduce their equity requirements for the projects substantially.

The cost per acre at various centres under equity participation based on the total cost incurred is follows. IGC Kannur : Rs.7.18 lakhs per acre Rs.5.95 lakhs per acre

IGC Kozhikode :

IGC Malppuram : IGC Alappuzha :

Rs.6.40 lakhs per acre Rs.6.60 lakhs per acre.

c)

Lease for 90 years: under these schemes, lands are transferred under the

following conditions. 1. 10% of the lease premium should be remitted as EMD by the allotter within 30 days of receipt of letter of intimation. 2. A minimum of 5% of the lease premium should be remitted as down payment within 15 days of receipt of allotment letter. 3. Balance of the lease premium should be remitted in 3 equal installments with interest @ 10% per annum within 2 years from the date of Lease Agreement. 4. Annual license charge of Rs.100/- per acre during the license or lease period. Services like water, power communication etc. will be charged extra nominal maintenance charge for the general facilities will also be levied. 5. EMD will be adjusted against the last installment of the lease premium. 6. Any other special terms and conditions whatsoever required in the context of allotment as decided by KSIDC should also applicable.

The lease premium proposed for the long lease schemes in various growth centres are as follows: IGC Kannur : Rs.5.28 lakhs per acre

IGC Kozhikode : IGC Alappuzha : IGC Malappuram :

Rs.4.41 lakhs per acre Rs.4.56 lakhs per acre Rs.4.83 lakhs per acre

d)

Rentals:

The rent for the let out of built up areas from IGC buildings are

as follows.

1.

Standard

Design

Factory

Building

(SDF)

at

Kannur Rs. 37.00 per Sq. meter per month. 2. 3. Administrative Building at Kannur Rs.51 per Sq. meter per month. Industrial Tower Block, Building at Kannur Rs.51 per Sq. meter per month. 4. Administrative Building at Kozhikode Rs.38 per Sq. meter per month. 5. Administrative Block Buildings at Malappuram Rs.50 per Sq. meter per month.

9. ELECTRONIC DEVELOPMENT PROGRAMME GROUP

The electronic development programme group is an important functional group within the organization. KDIDC is one of the first

organizations that made use of networking intranet to effectively connect various departments within the organization (1986).

The Assistant General Manager EDP is the head of the group. All departments have the PCs. These PCs are supported with windows XP and are provided to officials till the Manager Level. This program has made provision for internet facility for officials till managerial level.

The EDP launched the website of KSIDC in 1994 but to update the website new rent with the IPC. The Board Rooms are well equipped with LCD projector and power point presentation and is an important venue for housing national level and international level discussion related to industry. Moreover, the KSIDC office at Ernakulum is connected with WAN.

FINANCIAL PERFORMANCE

Understanding the past is a necessary prelude to contemplating the future. The analysis of the financial performance gives the result of the performance of any business. KSIDC saw a change in its policies in the last couple of years with the emergence of disinvestment as an important method of industrial development and liberal policies for foreign investors this change in policies was necessary. It was after this change in policies KSIDC came to looked up on as a hope for faster progress of the state.

FINANACIAL POSITION

The Table below summaries the financial position of the company

Liabilities Paid up capital Borrowings (Including

2006-2007 2947435000

2007-2008 2992435000

2008-2009 2992435000

2009-2010 2992435000

87635808

111022808

Debentures) Trade dues on 479607767 current liabilities 4026431269 Assets Gross block Less Depreciation Net Block Trade Investment Current assets 1108239792 16239948.02 407306715 4948133 3350818498

353202446

4048184448

3897138832

3965483928

50666405 35519274

52305473 37169911

55574685.53 36588391.06

15147131 578485067

15135562 234123112

18986295.47 594525702

1172244513

Loans and Advances Capital Employed Net Worth

2494644814

2282307737

2667567703

2390515687

1078996269

1055749448

2992435000

2992435000

3381323126

3596788960

3265628617

3362696650

The Table below summaries the Performance of the company of the company

Performance of the company Gross Income(inclu ding other income) Total Expenditure Profit before tax

2006-07

2007-08

2008-2009

2009-2010

479271517

31838011.08

311490524

317597175

112128609

100067451

115301554

98239292

367142908

21831266.08

196188970

219357883

Profit after tax Earnings per share(Rs.1000 /-fully paid)

209792442

156772489.6

151980526

145450908

129.9342452

48.57747806

50.79

48.61

CAPITAL STRUCTURE

The following table gives the analysis of the Debt Equity Ratio of the Company for the five years from 2003-04 to 2007-08.

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

0.14:1

0.04:1

0.05:1

0.04:1

0.03:1

.14:1

.15:1

Current Ratio The analysis of the current ratio for the period from 2002-2003 to 2006-07 Sl. Item No 1 Current Assets 2 Current Liabilities 3 Working Capital(1-2) 4 Current Ratio(1/2)
15.21 17.22 22.94 9.78 7.33 7.07 23762.43 23406.65 26349.25 31013.5 28206.19 27029.76 1672.01 1443.23 1201.03 3532.02 4450.09 4451.11 25434.44 24849.88 27550.28 34545.52 32656.28 31480.882

2004-05

2005-06

2006-07 2007-08 2008-09 2009-10

CONCLUSION
KSIDC is a premier promotional agency of the State Government. It has a strong network with other Government bodies and independent private organizations. The extent to which the corporation goes to achieves this can be understood from the decision to work an extra hour daily, without pay, to speed up matters relating to the Global Investors meant hosted by the State Government in Kochi. As far as the IT sector is concerned, Kerala has gained recognition as a potential IT destination and will emerge as a destination of choice along with the other major national IT hubs. KSIDC is the only one agency for financing medium and large scale projects.

The role and added social obligations provide a lot of opportunities to KSIDC. It is very essential for new emerging sectors in industry. Being a

powerful arm of the Government in the promotional and the industrial development of the State, KSIDC has a very important role to play. The future role of the KSIDC shall be multi to combat industrial slag nation and stimulate growth to create a positive image of the State and to live up to the expectation of the investors and provide advisory service to Government in the industrial front and in developing a growth strategy of the state. In the role of the catalysts in the state development KSIDC has a long way to go and the further holds much promises for the corporation.

BIBLIOGRAPHY

1. KSIDC website (www.ksidc.org) 2. Annual Report of KSIDC