Seven persons are enough to start a public limited company.a company is started by contributing money. The capital of KAL is contributed by Government of kerala when
ACCOUNT OFFICER
ASSISTANT
ACCOUNTANT
ASSISTANT ACCOUNTANT
CLERICAL STAFF
ASSISTANT MANAGER (FINANCE)
CASHIER
INTERNAL AUDITOR
COMPUTEROPERAT
GENERAL MANAGER
till 1992.then a revival package was allowed by BIFR.It was approached to banks to get money and to government for grand. In 1994-95, it started making profit. It continued up to 2004-05. Its accumulated loss was wiped out and it snet worth became positive. There was a surplus in the balance sheet. From 2005-06, it again came to loss and continues till now.This is because the production and sales is not enough to meet the target.
Current status:
Companies accumulated loss – 15 crore.
Companies net worth is negative.(net worth = asset – liability)
Production less that 300 vehicles a month will make liability. So, R&D is to be developed to get it manage. They have to give quality product. Nowadays company suffers the lack of sufficient amount of fund for the day to day operations.The government should provide more money to meet working capital. There are crores of rupees as current liability.
Money is the life blood of any organization as it is required to purchase raw materials and machines, to pay wages and salary etc. the financial statement of the company is prepared under the convention accrual basis as a going concern. Complying with the accounting standards prescribed under the companies act 1986. Documents for original entry are prepared directly in the computer and a copy is sent to the appropriate authority for further verification and approval. If any entry is to be certified, it can only be done through an adjustment document. This ensures security of documentation against any accidental errors or manifestation. The ultimate responsibility of carrying out the finance functions lies with the top management.
Thus a department to organize the financial function should be under the direct control of the Board Of Directors.
MAIN FUNCTIONS:
Cashier collects cash receipt . If any payment is taken place, a bank payment voucher is prepared. Every voucher is prepared by the debit and credit system through the computer. When transaction takes place, a sales invoice is prepared by the marketing department for the dealer. When invoice is prepared, the computer database is used to create debit and credit and which is sent to dealers. From sales list, a trial
Every transaction is prepared by clerk. It is send to the finance manager. Then the payment is given by the cahier.
Cash receipt/payment
Position and filling of VRS.
Settlement of tax, temporary salary, interest advance.
Payment of retainer fee.
Physical verification of cash.
Verification/approval of all cash /bank receipt and payment vouchers.
Bank receipts/payments
Preparation of RT vouchers.
Amount transfer vouchers.
Writing of cheque.
Generation bank books.
Preparation of bank reconciliation statement.
Verification of checklist of sales bills, stipend etc.
Remittance of all recoveries made from salary.
Settlement of canteen account etc.
Finalizations
Analysis of ledger.
Ratification of errors.
Adjusting and clearing entries.
Preparation of trial balance, P&L accountant & balance sheet.
Assisting internal audit.
Assisting statutory audit.
Preparation of annual reports.
Capital structure
Capital structure is a major aspect of financial planning. The capital or funds come in the form of long term and short term departments, preferences and equiy shares. The company has no share holders other than loan from Kerala government.
The company’s other financial support is only from the financial institution SBI.
Debt-equity ratio of the company was 6.7:1 I n2001-02, .44:1 in 2002-03, .38:1 in
Purchase
Opening tenders
Posting and filling GRN
Preparation of payment vouchers
Analysis of supplier vouchers
Analysis of supplier account.
Sales
Arrange follow-up invoice.
Preparation of sales tax return.
Payment of incentives.
Warranty claim statement.
Attending sales tax hearing.
Verification of account.
Managing computer
Salary bill processing.
Arrears calculations.
Keeping the accounts database.
Calculating the employee benefits, credits, debts etc.
Preparing the documents of transactions.
Maintenance of computer system is done by finance department.
3.6 PLANNING DEPARTMENT
DEPARTMENT STRUCTURE
Planning department is under the control of GM(production). This is the base of all production, marketing, storing and all other managerial functions of the management.
All the major functions are performed within the framework of plans done by the planning department.
This department mainly concentrating on production, marketing, storing and all other managerial functions of the management. It is mainly concentrating on scales planning. But also maintenance the material planning and production planning. They are taking the decision on market targeting, market mix, priority of raw materials (A, B, C, D, E ) etc. Based on the information from the marketing department, they produce monthly target. Then the target will send to the concerned department. If any faults happen, then make correction after discussing with the GM.
Functions
In KAL planning takes in 3 phases.
Planning phase
Executing phase
Control phase.
This department gives the information about the allocation and utilization of machines and materials required for production. Incoming raw materials are delivered to the quality assurance department after that collect in store and then distribution. It also does the controlling function. The day to day works are sent to this department to check whether the production is in accordance with the planned level or not.
ASSISTANT MANAGER
JUNIOR ENGINEER
OFFICER
3.7 RESEARCH & DEVELOPMENT DEPARTMENT
This department designs the model of products and provides information about various items, which the company can produce. This department is under the control of the marketing manager.
In KAL, R&D department provides information about the various products which can be provided by the company.
Design section:
Based on the market study done by the marketing department and competitors, the marketing section decides the design for the product.
Italian design is the basic design adopted for the Indian 3 wheeler industry. In KAL, they designed the petrol model in 1984. In 1985 they designed the diesel engines vehicles. KAL designed the tipper, bottle carrier, jumbo, 4 stroke petrol engine vehicle etc.
KAL product engineering section has the computerized design system and testing equipment to ensure the international standards. Experienced engineers have transformed the basic Italian model.
The latest trends in production are to provide fuel efficient and eco-friendly vehicles.
Company is introducing engines of bharat stage-3.
Major achievements
Introduced diesel engine 3 wheeler in the market for the first time.
Introduced 6 seater diesel engine 3 wheelers.
Development of aerodynamic design.
MANAGER
Sr. Engineer
Jr. Engineer
Introduced TRIMO which is a 3 wheeler micro car with round steering. It had good market potential. But the production became unsuccessful due to financial, legal and red tape constraints.
Design, development and introduction of KERALA 360 pick-up van with hydraulic system.
Introduction of KERALA MX400 chassis.
R&D in wheeler functional area
Improving riding control
Aerodynamic body design.
Re-design seating capacity.
Development of AF series of gearbox, resulting in the increase of maximum speed from 4 kmph to 50 kmph.
Fixation of quality grade for present gear components.
Analysis of low clutch life period and introducing necessary modifications.
Research and analysis to reduce rolling friction of existing models.
Research for the modification of present engine to upgrade to next bharat stage level.
Future plans:
Improve the quality and reliability of products.
Design and development of high-tech 4S petrol engine.
Improve the quality of the components used for production.
Improve the quality of sophisticated precision components for space application of VSSC.
Plan to develop hybrid electric vehicle as a combined project with KELTRON.
3.8 PRODUCTION DEPARTMENT
PLANT PROCESS
PROCESS:
In the first step, the materials are purchased from the supplier and sent to the manufacturing process. The manufacturing is done according to the specifications given by the product design section. The marketing department will be involved in the work of collecting the design specifications from the market. Once these specifications are collected from the market, the design department will design the product and send it to the approval of the purchase department. Once the purchase department approves the design, then the planning department prepare the production
Supplies raw materials
( through suppliers