Institute of Management Development and Research

(IMDR, Pune)

Internship Project
Fortnightly Report - I

Submitted To:

Submitted By:

Prof. Giribala Dewasthale

Hitesh Chawla
PGDM I. Div. A
Roll No. 21
30/05/2016

CERTIFICATE
This is to certify that this fortnightly report is exclusively
prepared by me, and I have not copied and neither published
the report from or to any website. The summer project of
finance titled is an original work and the project is being
carried out at Kirloskar Pneumatic Company Ltd from 12th
May 2016 under the guidance of Mr. Manoj Deshpande (Sr.
Manager Finance), Mr. R.B. Shaligram (General Manager
Finance) and faculty mentor Prof. Giribala Dewasthale.

Date: 30th May 2016

By:
Hitesh Chawla
PGDM (2015-17)
Roll No. 21

Summary and Title:

My internship started on 12th may 2016 in Kirloskar Pneumatic Company
Ltd. The project assigned to me is ratio analysis and working capital
management. In this project, we need to critically evaluate the companys
performance by finding various ratios with the help of data provided, comparing
it with industry standards and also with different years. With this, we need to
draw conclusions on the trends and effects of the ratios and give suggestions to
the management regarding the same.
To complete the task, we have started by reading the balance sheets of the
company by referring to the Annual audit reports. We have started by
understanding each and every term of the balance sheet, P&L account and the
cash flow statements. We also have started with the importance of ratios and
how do actually ratios show or reflect the performance of the company.
Apart from reading the balance sheet and computing and analysing ratios,
we are also assigned the job of preparation of reconciliation account, where in
we need to prepare reconciliation accounts for various months and give the
report to our project guide. This helps in deeper understanding of the companys
operations related to finance.
Looking at the work undertaken, and keeping in mind the discussion with
college mentor, the TITLE of my project is

Analysis of ratios and working capital at KPCL

Scope of the project:
This project is a part of financial analysis. As financial analysis is now a
trending career for finance students, this project is helpful. Also the knowledge
of working capital is vast and should not only be known by finance students, but
is also useful for all departments. With this project, the student will get a deep
insight of financial ratios and working capital management of an international
company. The student will know about the companys liquidity, solvency and
profitability. It is a tool for student to know various ratios, its analysis and
effects which will help the student to give suggestions to the management. This
is a tool not only to learn the finance part, but also to get an insight of the
operations part of the company.

A brief about the company:

The name Kirloskar is synonymous with quality and dependability in the engineering
industry. Pioneering industrial revolution in India, Kirloskar group has contributed
immensely in every field of its operation during its 120 year-long journey, and holds a place
of repute in the industry for its good business values and customer focus.
Kirloskar Pneumatic Company Ltd. (KPCL) is one of the core group companies. KPCL was
incorporated in 1958 under the chairmanship of Late Shri Shantanurao Kirloskar. KPCL is
certified for Integrated Management System (IMS) Certifications of ISO 9001:2008, ISO
14001:2004, OHSAS 18001:2007, by TUV NORD.
The company started its operations with the manufacture of Air Compressors and Pneumatic
Tools. New product lines were then added, including Air Conditioning and Refrigeration
systems, Marine HVACR, Process Gas systems and Hydraulic Power Transmission
machinery. The company has also earned an enviable reputation for its Systems Engineering
and Turnkey Project expertise.
Over the years, Kirloskar Pneumatic Company Ltd. has developed various sophisticated and
high-tech products in the above categories to cater to the demands of various industrial
sectors. KPCL has also established a number of joint ventures and technology partnerships
with leading global companies. It has earned the distinction of developing a host of advanced
products to suit Indian conditions and has been continuously updating them to maintain the
highest standards of quality and reliability.

Board of Directors:
Mr. Rahul C. Kirloskar (Executive Chairman)
Mr. Atul C. Kirloskar (Director)
Mr. Vikram S. Kirloskar (Director)
Mr. A. C. Mukherji (Director)
Mr. G. Krishna Rao (Director)
Mr. P. S. Jawadekar (Director)
Mr. D. R. Swar (Director)
Mr. Sunil Shah Singh (Director)
Mr. Aditya Kowshik (Managing Director)
Ms. Aditi Pant (Director)

Products
Air Compressor Division (ACD)
ACD offers a wide range of air compressors in 15 product categories. The division has a
complete range of air compressors covering reciprocating compressors to the high tech
centrifugal type as well as screw type compressors. These compressors cater to needs of
diverse industrial segments.
To bring focused attention and create centres of competence specific to technology, these are
sub divided in three categories - Reciprocating compressors, screw compressors & centrifugal
compressors.
ACD products are primarily sold and serviced through four regional offices and three Area
offices in India and supported by around 30 authorized dealers. Dealers also support
customers in their requirement of spares. After-Area-service is provided through Area offices.
Our authorized dealers have well trained personnel and infrastructure to provide service to
customers.
Air Conditioning, Refrigeration & Process Gas Division (ACR & PGS)
The ACR - PG division has the capability to manufacture Air Conditioning & Refrigeration
compressors (equipment group) and offer turnkey system solutions for refrigeration projects
and process gas applications.
ACR - PG has four Business Groups that function as independent business verticals.

Equipment (Compressors for refrigeration system)

Refrigeration Systems (Industrial refrigeration packages, Customized turnkey
projects, Screw compressor package, Containarised Ice & water chilling plants &
Marine HVACR)
Process Gas Systems (CNG compression packages & Gas compression packages)
Vapour Absorption Chillers (Gas / Oil, Steam, hot-water driven VACs).

The Projects sub division undertakes turnkey projects where the scope includes planning,
designing, manufacturing, installing and commissioning of Refrigeration Systems and
Process Gas Systems (PGS).
ACR & PG products, including compressors and spares, are marketed and serviced through
around 30 authorized dealers from across the world. Their Area and service is monitored and
supported by 3 Regional Offices, 4 Area Offices and 4 overseas offices.
After-Area support is provided through dealer service personnel supported by company
engineers. Customer feedback is monitored & reviewed centrally and supported by way of
material and technical expertise where necessary.
ACR Equipments 'Reciprocating open type refrigeration compressors' are certified to CE
marking under 'EC Machinery Directive 2006/42/EC'.

Transmission Division (TRM)

TRM specifically caters to the needs of the Rail, Defence and Non-conventional energy
sectors. TRM has technological leadership in different types of gears and gear boxes with
capacities ranging from sub megawatt to higher megawatt range.
TRM products are sold directly through sales division in Pune. Spares are available with sales
and authorized dealers. The regional offices provide local support for sales and service. Aftersales support is provided through service personnel at HO and regional offices. Select dealers
who are strategically located have trained service personnel. Most of the products are
delivered directly to the customer.

Customers:
The company has proven key customers like ONGC, Reliance, Jindal, BPCL, HPCL, CPCL
etc. and also serves the defence and railways.

Bibliography:
The sources of information:
1. Observation
2. Companys website
3. Annual reports of the company.