TELK LIMITED

CHAPTER 1

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TELK LIMITED

1.1 INTRODUCTION
Organizations are formed for fulfilling certain objectives. The objectives are laid down as and when an organization is started. It is the pooling up of ideas and innovations for sustainable development. Various factors like manpower, money, machinery, capital, management etc are grouped together to form an organization and to achieve the goals of the organization. But these efforts will become a failure if they are not managed properly. This Industrial study is an attempt to know about the organization and its effectiveness of management. For that, I have selected a very famous and established industry named Transformers and Electricals Kerala Ltd. It is located at Angamally

1.2 SCOPE OF STUDY

For economic development, Electric Power has a major role with out Power generation no development can be possible. As a crucial part of development it is worth while to make a study about the requirements, which are used for the generation of electricity.

1.3 NEED FOR THE STUDY

There are so many factors which lead a company success. Hence through this organizational study, I wish to express the key factors which make TELK the No.1 transformer manufacturer. There are so many factors which are directly or indirectly related to the success of the business. Through this study, helps to know the working of all departments & how systematically it is going on in the organization.

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It has the following needs: The study attempts to understand the performance of different departments To understand the working Condition in the organization. To understand the quality assurance of the organization To understand the financial position of the organization To understand the services given by the organization to the society.

1.4 OBJECTIVES OF THE STUDY

To understand the organizational structure. To know about the strategies of the company. To know more about the company To know the policies & procedures of the company. To understand & study the different departments of the organization. The objective of the study was to gain practical knowledge of the system & procedure of various departments in an organization. To know the resources of the company such as men, money, materials, & machinery are managed. To interact with managers at various levels of organizational hierarchy.

1.5 RESEARCH METHODOLOGY

For the purpose of the study data have been collected from both primary & secondary sources. The sources of primary data include the discussions with the Senior Officers at various levels & official records & files of the company.

1.5.1 RESEARCH DESIGN

A design is a conceptual structure with in which the research is conducted . The study describes about the functions of different departments & Working Dept. of Management Studies ASIET

TELK LIMITED conditions of the Organization. The study was conducted extensively at TELK, Angamally.

1.5.2 METHOD OF DATA COLLECTION

1. Primary Data: The primary data was collected through the direct interview with officials of TELK through observation. 2. Secondary Data The secondary data has been collected from various magazines, past records, enquiry, departmental manuals & website www.telk.com

1.6 LIMITATIONS OF THE STUDY

Time constraints This study was mainly conducted with the help of annual reports, journal brochures, departmental manuals etc. The company didnt reveal some official reports & documents as it kept confidential.

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CHAPTER 2

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2.1 INDUSTRY PROFILE

Transformer Industry, a segment of Heavy Electrical Industry depends solely on the power development in the country in particular and of the world in general. That is, demand for Transformers and related products is a derived demand dependent on Power Sector Development. The power generating capacity in India increased almost by 50 times during the past fifty years. In 1950 the generating capacity was nearly 1800 MW which has now increased to about 90000MW. The transformer Industry mainly comprises the Power Transformers Segment and the Industrial Transformer Segment. The industry is monopolistic in nature with the bulk of the demand for Power Transformer being generated by State Electricity Boards and Central Government undertakings, Independent Power producers and Turnkey Projects. Power is a basic input for growth and development of a country and it is essential ingredient for improving the standard of living of the people. As such, in developing economies, the importance of growth of power sector cannot be over emphasized. India, with its planned economy, was giving ample importance to the power sector in the five-year plans. Up to the beginning of nineties the public utilities played the largest role in the power sector. In 1991 the Government of India opened the doors of power sector to private parties also. The main reason for the same was to ensure additional funds for the massive capacity expansion needed. A crisis in the national economy resulted in substantial shrinking of resources available for investment in public sector. The opening up of economy and liberalization policies are resorted to by the Government of India, changed the power sector scenario totally. TELK also had started a Project Engineering Division in 1985. But still this is only a beginner in the field of electrical turnkey contracts. The major suppliers who are possessing almost 90% of the turnkey market are Bharat Heavy Electricals Limited, Asia Brown Boveri, Crompton Greaves Limited, Bombay Suburban Electric Supply, Larson & Toubro, Siemens, Tata Projects etc and so on.

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TELK LIMITED There are also others who entered comparatively later such as Jyothi Structures, Techno, UB Engineering & so on & they are holding about 9% of the market. TELK along with other small Companies hold only the balance 1% of the turnkey market. Even though TELK has already executed a few turn key projects and got order for a 400 KV substation project from Power Grid, a real break through by enlarging the operations of project engineering Division is yet to take place.

In the instrument Transformer field & Isolated Phase Bus Ducts there are many players including those in small scale sector. The price levels in respect of these products also have been registering a negative growth during the past years.

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2.2

COMPANY PROFILE

2.2.1 FORMATION OF THE COMPANY

Transformers & Electricals Kerala Limited, Angamally, Ernakulam ( Dist ), Kerala known by the name TELK is a major extra high voltage electrical manufacturing company owned by the Government of Kerala. The Company was incorporated in December 9-12-1963.

2.2.2 ABOUT THE COMPANY

Kerala Heavy Electrical Project ( KHEP ), TVM is the pioneer of TELK. The first MD of TELK was Mr. A.O.Ummen. In 1964, the registered office is transferred to Ernakulam. The Ambassador of Japan laid a foundation stone of the factory in January 1964 at Angamally. The GOK, KSIDC and Global gain in power equipments M/S Hitachi of Japan joint hands to land supporting nation building.

Reasons to Choose Angamally:

The location for the factory was selected at Angamally due to the following reasons:The factory is located at Angamally about 30Km from Cochin Airport. It is very near to TELK and customers can reach TELK from this airport within minutes. The factory is located beside the National Highway 47 and is easily accessible by road. The company is having its own railway sidings.

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TELK LIMITED Its location is just opposite to the Angamally station help the company to move their products by rail Seaport Cochin is about 30kms away from TELK which helps the company in its exports. In 1966, the registered office Ernakulam was shifted to Angamally, in the beginning stages of the company, there are four regional offices. TELK has set up regional offices I New Delhi and Chennai for giving better services to customers. The other regional offices are Mumbai and Calcutta. But now, all of the regional offices are not in working stage. The Calcutta regional office was closed in the year 2000. Mumbai and Chennai regional offices were closed in the year 2002 and 2004 respectively. At present only Delhi regional office is working. This is running well. This is running to help the marketing networks for taking orders and execution work. There is no production up to 1996 January. Trail production starts from February 1966. The product was 5MVA transformer manufactured for KSEB. The product was handed over to KSEB on May 1966. TELK started commercial production on May 1966 by manufacturing 4 MVA, 66/11 KV Power Transformer to Kerala Electricity Board.

TELK has made history in the Power Transformer field in India as follows: First 400 KV Power Transformer manufactured in India First 315 MVA capacity, 400 KV Transformer manufactured in India Largest capacity Generator Transformer ever manufactured in India ( 630 MVA Bank capacity supplied in 2003 ) First 4000 KV Gas Circuit Breaker manufactured in India. First 400 KV Condenser Bushing manufactured in India etc.

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2.2.3 STAGES OF TELK

The most 4 important stages of TELK are as follows:In the first stage, initial capacity was 1080 MVA Power Transformer. Current Transformers ( CT ), Potential Transformers ( PT ), Voltage Transformers ( VT ), On Load Tap Charger ( OLTC ), Bushing etc are produced. In 1974, the public issue of equity share capital of Rs.2crores increased to Rs.5crores. At that time the capacity increased to 3000 MVA. In this stage, the capacity is increased to 4500 MVA.. The fourth stage expansions are the turning point of TELK.

2.2.4 QUALITY

TELK has got the coveted position in India as the manufacturer of Best Quality Equipments in Extra Voltage field . This unique position in respect of Quality was imbibed in TELKs culture right from the beginning, with cent percent Japanese technology and manufacturing methods that we adopted from the world famous Hitachi, Japan. The Company has got ISO 9001-2000 Accreditation.

2.2.5 MANAGEMENT SET UP OF TELK

The management of the Company subject to the control & supervision of directors, that is in the hands of the Managing Director. Managing Director is the supreme of the Company. He is the Chief Executive of the Company. He is the representative of the Government. Chairman is the top of the Managing Director. Dept. of Management Studies ASIET

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TELK LIMITED Board of Directors is the top of Chairman. Policy matters are done by Managing Director with the approval of Board of Directors. There are 11 Board Members in TELK, out of 11,2 from Hitachi,1 from SBT 2 from financial Institutions and all others are Government nominees Such as Industrial Secretary, Finance Secretary, Power Secretary or KSEB Chairman. Major Shareholdings are under taken by the Government. So the decision making power is vested with them. Industrial Ministry is controlled by the Company. Final Authority is Government of Kerala. The Companys Annual Reports are passed in the Annual General Meeting by the Board.

BOARD OF DIRECTORS
SL.NO 1 2 3 4 5 6 7 8 9 10 11 Name T.P.Imbichammad- Chairman M.A.Azeez T.K.Rajamma ( Joint Secretary to Govt ) C.Abdulla -Member (Distribution ) K.K.Chattopadhyay ( SBT ) S.A.Bohra ( Executive Director ) G.Maheen Aboobacker MM. Abdul Basheer M.G.Rajagopal ( Chief ElectricalInspector ) KR. Viswambharan( Managing Director ) P.Jayaprakash (Addl Secretary ) TABLE 1

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TELK LIMITED

2.2.6 PRODUCT PROFILE

Following are TELKs products: Power Transformer Reactors Current Transformers Voltage Transformers Oil Impregnated Paper Condenser Bushing On Load Tap Changers High Voltage Circuit Breakers Isolated Phase Bus Ducts At present, TELK is concentrating on manufacture of Power Transformers and Instrument Transformers only. TELKs own in house requirement , Condenser Bushings and On Load Tap Changers are also manufactured. Gas Circuit Breakers, Shunt Reactors, Isolated Phase Bus Ducts etc. are not in the Product Range at the moment ( non-availability of latest technology ).

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TELK LIMITED

CHART NO: 1
2.3 ORGANISATIONAL STRUCTURE OF TELK

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TELK LIMITED

2.3.1 ORGANISATIONAL STRUCTURE OF TELK

TELK is headed by a Chairman and day to day affairs are managed by managing director. Managing Director is the Chief Executive Officer of the Company. Board of Directors heads Chairman. Generally 11 directors are in TELK. Two of them are from Hitachi Ltd., Japan, one from KSIDC, Two from Financial Institutions, 1 from SBT and others are Government nominees. Industrial department of Government of Kerala does all decisions about TELK.

COMMUNICATION PROCESS & METHODS

Communication is an essential part for the success of any organization. In TELK two ways of communication are exist. One is formal and other is informal. Company provides extension phones and parallel connections to every department. Written order in the form of circular, memos etc. are used for communication. Common matters of the company are displayed in the notice board.

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TELK LIMITED

CHAPTER 3

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TELK LIMITED

PERSONNEL DEPARTMENT

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TELK LIMITED

3.1 ORGANISATIONAL STRUCTURE CHART NO: 2

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TELK LIMITED

3.1.1 PERSONNEL DEPARTMENT

The success and strength of any organization lies in its human resources. A very effective personnel ( human resources ) department is functioning in TELK with various functions. Company has separate standing orders for both work men and office men. The selection processes of employees are taking place through the public service commission and the work men are selecting through employment exchange. After selecting the employee the personnel department gives proper training for the job. The head of Personnel Department is Manager ( Personnel ), Officers and Staffs are the main Assistants of Manger ( Personnel ).

3.1.2 PERSONNEL PLANNING

Personnel requirement of each department to achieve the targeted production of the company is determined first. Manpower requirement of the production and administration departments are planned in such way as to conform to the future expansion and development of the Company. The departments prepare manpower planning schedule each year. The department prepares manpower planning schedule each year. The strength of manpower required is approved by the Board of Directors. as per the man power strength required, requirements are made.

The employee strength of TELK can be listed as follows:Sweeper To Chargemen Office Staff To Peon Officers To General Manager Apprentice Temporary Employees Total 723 107 206 120 25 1181

TABLE 2

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TELK LIMITED

3.1.3 FUNCTIONS OF PERSONNEL DEPARTMENT

1. Actual promotion of both Work men and Officers. 2. Referendum. 3. Recruitment procedure of Contract Employees. 4. Labour Welfare. 5. Prepare Officers Rating Report. 6. Issue of Salary to Employees. 7. Retirement Arrangements. 8. Advertisements. 9. Transfer and postings. 10. Recruitment of Apprentices. 11. First Aid Treatment. 12. Disciplinary Action.

The Areas Covered Under This Department Include: 1. Recruitment and Selection 2. Induction, Training and Development 3. Promotion 4. Wages and Salary Administration 5. Time Office 6. Performance Appraisal 7. Health and Safety 8. Welfare measures 9. Employee Grievance 10. Trade Unions 11. Public Relations The department conducts training programmes for the management personnel, technical personnel, supervising staff and department heads.

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TELK LIMITED

3.1.3.1 RECRUITMENT AND SELECTION OF EMPLOYEES

Recruitment of employees is done through three sources:1. Employment Exchange 2. Public Service Commission 3. Through direct method i.e. through advertisement Selection of employees is made through written test and interview. Workman required for production departments are recruited through Employment Exchanges. Personnel required for administrative departments like office assistants, stenographers, attendees drivers etc are recruited by the Kerala Public Service Commission as per the requisition given by TELK. Recruitment through newspaper advertisement is usually resorted for recruitment of Managerial Personnel. This system of recruitment is resorted to for the purpose of recruitment of engineers, professional persons like chartered accountants, Cost and Works Accountants and statutory officers like company secretary, safety officer, welfare officer etc. Classification of work men:1. Permanent 2. Probationary 3. Substitute 4. Apprentice 5. Temporary 6. Casual

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TELK LIMITED

3.1.3.2 INDUCTION, TRAINING & DEVELOPMENT

In TELK regular training programme for newly recruited engineers and supervising personnel. The company sponsors employees for undergoing training in management, Engineering and technology etc organized by well established institutions and universities. For workers there are 3 types of training conducted by the company. They are: a. Induction Training:- This type of training gives a general idea about the policies and b. Procedure of the company. c. Orientation Training: - It helps in learning the specialties of particular job. d. On the job training: - Giving training while doing the Job.

3.1.3.3 PROMOTION
Promotion is judged with reference to the date of occurrence of vacancy and not of appointment. Where it is made on the basis of seniority-cum-merit, seniority adhere cannot confer promotion as a matter of right and one has to be found fit for promotion. Promotion is made according to the rank in the list. The selected list shall be kept alive for one year and vacancies arising during the course of that period shall be filled from that list. Appointment on temporary or ad hoc basis shall not count for seniority. If two or more persons are appointed to the same category at same date, seniority will be determined according to the age.

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TELK LIMITED

3.1.3.4 WAGES AND SALARY ADMINISTRATION

a. Payment Structure

Total payment is divided to basic pay, DA, HRA, PF, ESI and other special allowances which is fixed according to the experience and grade of an employee. b. Dearness Allowance The company will pay to all its regular workmen except the non cadre workers dearness allowance at 4.85 per point above 173 points of consumer price index. c. House Rent Allowance

HRA is fixed as 10% of basic pay to a minimum of Rs140/-& a maximum of Rs.400 per month. Workmen who are residence of company quarters will also be eligible for HRA. d. Provident Fund Both employer and employees contributing to the PF as per the statutory requirements of PF Act. e. Employees State Insurance ( ESI )

Now ESI is applicable for casual workers. It is beneficial only on accidents in the course of employment resulting in the absence from work. f. Transport Subsidy

The company provides with a transport subsidy of RS 115 per month.

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TELK LIMITED g. Winter Cloth Allowances

Winter cloth allowance Rs.500 is provided by the company. h. Leave and Holidays Earned Leave:- 30 days in a year (1/12)th Casual Leave:- 12 days in a year Sick Leave:- 35 days on half pay ( Pay + DA ) in a year National and Festival Holidays:- 13 days in a year i. Short Leave

Short Leave of not less than 1hr at the end of the shift up to a total accumulation of 4hr per month will be allowed. j. Travelling Allowance

TA will be revised by the management in consultation with the unions of workmen within 3months from date of signing this settlement. k. Erection Allowance The workmen engaged in inspection of transformer tank at suppliers work on the days of actual testing one inspection of the transformer tanks will also be eligible for the above erection allowance. l. Working dress

All workmen in the factory and office will be provided with three pairs of pants and three slack shirts in December every alternate year.

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TELK LIMITED m. Interest Subsidy for house loan To meet part of interest expenses incurred by workmen solely for loans raised by them for construction of own house, the management agrees to subsidize such interest subject to limiting the total annual financial commitment to Rs.100000/-. n. Accident Benefits In the case of workmen who meet accidents in the course of employment resulting in absence from work, duly certified by the ESI Medical officer. The management agrees to pay for a maximum period of 20 days.

3.1.3.5 TIME OFFICE ADMINISTRATION

For the correct calculation of wages for the employees and for keeping their attendance the company has a time office. The system is computerized by ZECONS,BANGALORE. Punching system is followed for making the attendance i.e. there are four daily punching, two times in the morning session and the other two in the evening session. Absence will be marked for the exit except for sickness or any official purpose. a. Working Hours The working time of the office staff is from 9:00 am to 5:00pm. For the worker there are 4 shifts i.e. the first shift from 7:30am to 3:30pm. The second shift from 3:30pm to 11:30pm. The third shift begins from 11:30pm & ends at 7:30pm. The fourth shift begins from 9:00am to 5:00pm. Attendance Bonus is given to all those who have 18 days attendance with out loss of pay & sick leave. The bonus rate is two days/ months salary up to the post of Assistant Officer. b. Over time

Overtime can be taken whenever necessary but only with the permission & knowing of the supervisor.

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TELK LIMITED c. Service weight & Increment

All regular workmen on the rolls of the company will be eligible for service weightage. Increment is fixed as ascertaining 15% of the basic salary. d. Shift Allowance

For the second & third shifts an allowance is given. For the second shift the amount is fixed as 20Rs /day& for the third shift Rs30/e. Disciplinary Proceedings

A workman found guilty may be warned or punished either by a fine not exceeding 3paise per rupee of the wages payable to him or by suspension for a period / not exceeding 20days by discharge or dismissal.

3.1.3.6 PERFORMANCE APPRAISL

The company has an efficient and effective method of performance appraisal. For workers, their performance are evaluated on the basis of the factors like a. Quality of Work b. Quantity Work c. Aptitude d. Job Knowledge e. Dependability f. Attitude g. Attendance The supervisor will be the first rater & it will be reviewed by the Engineer. Then the report will be sent to the personnel department . Normally the Above said process is being done twice in a year is in June/July & December/January. Based

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TELK LIMITED on the marks obtained in the performance evaluation. performance evaluation. They are classified into 6 groups Group I II III IV V VI Range of Mark 91-100 81-90 71-80 61-70 51-60 50 and above TABLE 3 They are clarified in the

Certain other factors like education and training , physical condition, suggestion record and family background are also taken in to consideration. For the office staff, the basis for appraisal is divided into 2 main factors. a. Job Performance Job Performance factor which includes job knowledge, quality and dependability, quality and cost and time consciousness and b. Managerial Factors Managerial factors which includes planning, organizing & controlling, intelligence & decision making leadership, initiative & original thinking, responsiveness to change & innovation, Developing Subordinates attitudes towards others, integrity & commitment etc.

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TELK LIMITED

3.1.3.7 HEALTH & SAFETY

Health check up are done for the employee. In addition to medical reimbursement advance payment for hospital bill is issued for employees. Company gives very important role for safety. Company appointed safety officers for executing the safety measures. Safety boards & Safety paths are arranged in the factory. Conducting safety classes & Safety shoes are issued for employees. Ambulance service is always available in the company for 24hrs. March 4 is the Safety Day of the Company.

3.1.3.8 WELFARE MEASURES

a. Canteen

In every organization as per the Factories Act where there are more than 250 employees food items are to be provided at a subsidized rate. Company provide canteen facilities to the employees. They have only to pay 55 paise per meal. The company is spending around 8lakhs of rupees per month as canteen expenses. It will about 1% of the total turn over. b. Welfare Fund In order to provide the employees with better working condition & facilities, the company has formed a welfare schemes. The scheme came into force on 1st January 1980. A committee is formed represented by both workers & management. The scheme ensures financial aid to the workers & his family members, in case of long illness , major surgery, or long absence without pay & also in cases of retirement or deaths, Voluntary abandonment of service due to in capacity on medical grounds.

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TELK LIMITED

c.

Recreational Facilities

TASC, in TELK Arts and Sports Clubs conducts the various cultural programmes for the employees. TASC Day is celebrated every year. There is a library and reading room for the employees. All the employees are members of the club. Thus it satisfied the recreational needs of the worker. d. Employees Co-operative Society It has a sound working system. It provides with loans & other sub financial aid to the needy employees. It has a salary saving scheme. The canteen is also run by the co-operative society.

3.1.3.9 EMPLOYEE GRIEVANCE

Grievance of individual employees and collective grievance of urgent nature will here after be settled expeditiously at lower level and only when this is not possible will be handled and settled at higher levels. For this purpose TELK employee Union, TELK Operators Association, TELK Workers Union & TELK Staff Union will nominate representatives from amongst the employee in each section and shift to represent grievance according to the grievance procedure and forward lists of names of representatives nominated to the management and also intimate changes when takes place.

3.1.3.10 INDUSTRIAL RELATION

Every four year, a referendum will be conducted by the management. 15% of the employees representing the union will be eligible to participate in discussions with management. At present three are 4 unions in TELK gets such recognition. 1. (CITU ) TELK Employees Union. 2. ( INTUC ) TELK Workers Congress. 3. ( AITUC ) TELK Employees. 4. ( Independent Union ) TELK Employees and Staff Association Dept. of Management Studies ASIET

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TELK LIMITED

3.1.3.11 PUBLIC RELATION

In TELK, the Company has an active Public Relation Section which tries its best to make a good relation with the public. It tries to solve the general problems of the public made by the company in a peaceful manner. The other major activities of public relation section are giving advertisements,& make contacts with the press & other media.

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TELK LIMITED

PURCHASE & MATERIAL DEPARTMENT

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TELK LIMITED

3.2.1 PURCHASE & MATERIAL DEPARTMENT

Purchase of material is one of the important functions of material management. At times material accounts for more than 50% of production costs. Ignoring this function can be very expensive. Purchase procedure may differ from firm to firm. .

In an Industry purchase means buying of equipments, materials, tools, parts, stores etc. required for industry. In manufacturing the first step is to purchase raw materials is required. Careful buying reduces the cost of materials & there by increasing profits. Hence purchasing is one of the delicate activities.

The head of purchase departments of TELK controls all purchases for company production and also responsible for the evaluation of vendors & for the development of new and existing vendors.

3.2.1.1 THE MAIN SUPPLIERS AND ITS RAW MATERIALS

1. Addison Co Ltd: - Tools 2. Donbosco Tech Cochin-Bearing 3. Preethi Industries- Tools 4. Calcutta Electrical & Engineering- Co-Ceramic 5. Berger Paints India Ltd:- Thinner 6. Corrub Industries Vadotara:- Corksheet 7. Mehta Trading Company Mumbai:- Plain washers 8. Safe Industrial & Marine Stores Cochin:- Rubber mat.

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TELK LIMITED

3.2.1.2 THE PURCHASE PROCEDURE OF TELK

Acceptance of order & detailed designs as per customers. Forwarding order details to production & planning department. Preparation of detailed designs as per customers specifications order & bill of materials by the design department.

Preparation of product wise production schedule & product budget by production & planning department.

Calculation of net requirement of each items by material planning department. Preparation of material indent. Receipt of the order by the purchase department Inviting quotations from various sources of supply. Seller selection. Internal audit & financial approval. Order is placed.

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TELK LIMITED

CHART NO 3
3.2.1.3 ORGANISATION STRUCTURE OF PURCHASE DEPARTMENT

Chief of Operation

Head of Material

Group in Charge-I Transformers of Imports

ASST.Manager

ASST.Officer

Group in Charge-II Switch Gears of others Engineers Staff

Staff

Junior Officer

Staff

3.2.1.4 RESPONSIBILITY AND AUTHORITY

Chief of Operation: - Overall control of all matters related to procurement.

Head of Materials: - General Administration, Inter Departmental Co-ordination , Data Analysis, Implementation of Corrective Action. Communicating & initializing measures to implement management review findings authorized persons for review, and approval purchase order.

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TELK LIMITED Group in Charge: - Direct responsibility for:-

1. Vender Evaluation 2. Implementing Corrective Action 3. Control of Records 4. Authorized person for Review & Approval 5. Purchase Function as assigned by the Head

Engineers\ Asst Engineers\ Junior Engineers 1. Review of Indent 2. Releasing Enquiries 3. File Processing 4. Review of Purchase Orders 5. Follow up with Vendors 6. Any other work assigned by Head of Materials/ Group in charge.

3.2.2.1 MATERIAL CHART OF MOVEMENT:-

The various materials obtained from different sources are passed through different process before getting the finished product. The movement from the initial stage of material Procurement up to the final stage sales are shown in the following chart.

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TELK LIMITED

CHART NO 4

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TELK LIMITED

PRODUCTION DEPARTMENT

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3.3

ORGANISATIONAL STRUCTURE CHART NO: 5

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3.3.1 PRODUCTION DEPARTMENT

The production wing is headed by Assistant General Manager ( Technical ) under the production wing. These are the following departments dealing with Design Planning (material& production ), Production, Assembly, Inspection & Testing, Factory Service despatch of transformers etc. Each department is headed by managers who are responsible to General Manager.

The main raw materials for the Production of transformers are Core, Copper, Mild Steel, Press Board & Transformer oil.

THE MAJOR FUNCTIONS OF PRODUCTION DEPARTMENT

Inspect qualities of all raw materials. Requisition given for raw materials by each shop. To divide work into different shops. Price of production per month is decided through budgeting. Production target is done at monthly.

3.3.3 PRODUCT CAPACITY

Actually TELKs products are tailor-made products. This is produced according to the requirement of the customers. So Transformers are not ready made products. Companys licensed capacity is 4500MVA. The company bought tender specification from the customers. There are two specifications in the tender. Technical Specification Commercial Specification Dept. of Management Studies ASIET

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TELK LIMITED

The technical department and design department study the Technical Specification. They only know whatever all things needed for producing a transformer, so they know the size, measurement, etc. relating to transformer. Commercial Specification is studied by Marketing Department.

3.3.4 MANUFACTURING FACILITIES:

TELK is fully equipped to manufacture 400 KV class Power Transformers up to350MVA unit capacity or 600 MVA three Phase Bank. The various special facilities available in TELK for the manufacture of 400 KV class Power transformers are as follows:1. Coil winding shop A fully air-conditioned and dust controlled coil winding shop is available which is meant exclusively for extra high voltage transformers. Two numbers vertical winding machines are available for manufacturing heavy and large coils. TELK was the first transformer manufacturer in India to install vertical winding machines. 2. Insulation Shop Special high density pre-compressed variety of press board imported from aboard is used for the manufacture of the winding cylinders. . 3. Core Fabrication Shop The 400 KV class Transformers will be generally large in size and hence it is essential to minimize hot sports in the core. The type of core construction adopted by TELK makes use of mitered, interleaved joints in core which helps to reduce cross fluxing and flux concentration. 90 degree joints are completely eliminated to ensure

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TELK LIMITED that there are no hot spots in core. Cooling ducts provided in the core ensure uniform cooling of the core. 4. Transformer Assembly Shop The core and coil assembly of Extra High Voltage Transformers is

carried out in an air-conditioned chamber. During work inside the Transformer tank, the active part will be continuously flooded with dry air at low temperature so as to minimize moisture absorption. For this purpose, a dry air generator is installed in the assembly shop. 5. Drying and Insulation Processing Shop The Extra High Voltage Transformers will be dried at a very high degree of vacuum to ensure complete elimination of moisture. 6. Plate Work Shop Plate workshop manufactures steel tanks for transformers and allied products. 7. Testing & Inspection In this, technical experts trained in transformers testing perform the Inspection & Testing of Transformers & other products manufactured in the presence of witness inspectors deputed by various customers. Material inspection wing of this department inspects the various components in TELK or purchased from outside agencies.

THE RESPONSIBILITIES OF VARIOUS DEPARTMENT HEADS

The following are the responsibilities of Various Department Heads Under Production Function.

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TELK LIMITED 1. Head of Planning Dept:Responsibilities Companies Production Plans & Schedules Materials requirement Planning for Transformers Co-ordination with marketing, Design & Production centers Control of Documents, Records and MIS etc.

2. Head of Transformer Design Department:Responsibilities Control of Design and Development. Tender & Design Assignment. Approval of Design and Control of / Design changes, Control of related Documents. Training of design Staff, preventive action review & co-ordination within the department/ with other department. 3. Head of Switchgear Design Dept Responsibilities Control of Design & Development Lender and Design Assignment Approval of Design Output & Control of Design changes. Financing of Design Staff, Preventive Action Review & Co-ordination within the Department/ with other Department etc.

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TELK LIMITED 4. Head of CT, PT, Bushings ( CPB ) Dept:Responsible For All activities related to Product realization of the Division Materials planning & Control for CPB Control of Documents

5. Head of Electronic Data Processing (EDP) Dept Responsibilities Control of Electric Data Processing Application System Development Procurement & Implementation Computer Installation/ Maintenance/ of computer system Back up of Data/ programs in the Centralized Server & Periodic integrity check up of back up Security against unauthorized access of systems Control of Documents & related records etc

6. Head of R& D and Standards Dept Responsible For R& D Activities Planning Assignment of R&D projects, review& surveillance of R& D activities Issue & Control of Design Supports as generated in the section Codification of materials Drawing & other documents control etc. Preparation / Collection & Control of company standards

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TELK LIMITED

7. Head of Purchase Department Responsibilities Controls all purchase for the company production Purchase of all items except the indigenous items required for circuit breakers and items required by the project engineering division. Evaluation of vendor & for the development of new & existing vendors.

8. Head of Stores Dept Responsibilities Receipt, Identification, Storage, Issue & Control of Materials Disposal of Scrap/ Obsolete Materials Control of Documents & Related Records Overall Planning of Store Activities

9. Head of Quality Assurance Dept:Responsibilities Verification/ Inspection/ Testing of purchased products Stage/ Final Inspection of products Collaboration ( electrical, servicing & maintenance of quality assurance equipments ) Corrective action review Release of final products Control of further processing, delivery or installation of product until the deficiency or unsatisfactory condition has been corrected

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TELK LIMITED Control of documents and co-ordination within department / with other departments.

3.3.6 PRODUCTS OF TELK

1. Power Transformer Power Transformers are vital equipments required for High Voltage Power Transmission Networks. 2. Current Transformer Current Transformers are required for protection & metering at generating stations & sub stations in power system networks. Current transformers manufactured by TELK are porcelain type . These are hermetically sealed & hence are maintenance free. 3. Voltage Transformer or Potential Transformer They are required for protection & metering in power system networks. ELK manufacture electromagnetic type voltage transformer up to 245KV Class. These voltage Transformers are hermetically sealed & hence are maintenance free. 4. Bushings Bushings are manufactured by thermal stability & low dielectric losses even at high temperature & over voltages which make them superior to other types of bushings. Bushings manufactured by is are more compact & sturdy. These are hermetically sealed & hence not susceptible to impurities & humidity.

5. On Load Tap Changers ( OLTC )

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TELK LIMITED It is manufactured by TELK are resistor type & based on Hitachi Design. OLTC required for TELKs own transformers are produced in the Switchgear Division. These are also being sold to other transformer manufacturers in India.

3.3.7 TELK ENGINEERING & CONSULTANCY SERVICE

It is the Project Engineering Division of TELK. This division undertakes Turnkey Project for Design, Engineering, Supply, Erection & Commissioning of substations & power stations up to 400kv system voltage.

3.3.8 TELKS PRODUCT RANGE

Power Transformers:- From 10 MVA 33KV to 315 MVA, 3phase & 780/3 MVA single phase, 400 KV class Shunt Reactors:- 80 MVAR, 420 KV Current Transformers:- From 66 KV to 420 KV class Potential Transformers:- From 66 KV to 420 KV class Oil Impregnated Condenser Bushings:- From 72.5KV to 420 KV class High Current Bushings:- up to 36KV, 12.5KA On Load & Off Circuit Tap Changers:- For Transformers up to 420KV class Other Services:- Construction of Substation up to 400 KV on turnkey basis

3.3.9 QUALITY CIRCLES

The main aim of Quality Circle is self development and material development of grass root level employees. It is not a problem solving concept but a problem prevention concept. In TELK there are only 2 Quality Circle. Dhalia Quality Circle and Sangamam Quality Circle. Dhalia Quality Circle representing machine shop, tool room, and mechanical calibaration. Dhalia Quality Circles contain 8 members. It includes one leader, deputy leader and a facilitator & Sangamam Quality Circle represents coil & insulation shop. It includes coil winding, coil assembly and Insulation shop.

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TELK LIMITED Sangamam Quality Circle contains 5 members. It includes one team leader & a facilitator. In earlier all most all areas were covered by quality circles. The main reason for reducing quality circle is shortage of manpower, lack of fund, ageing of work force.

QUALITY MANAGEMENT
TELKs Quality Policy To provide products and services that meet customer & regulatory requirements & to continually strive for business excellence. At TELK, quality is never an accident but a feature built into its products as a result of conscious effort at every stage of manufacture right from design, through procurement, manufacturing, testing and installation up to commissioning of the product. As one of the first Indo-Japanese joint venture in the country, TELK has been emphasizing on the Total Quality concept from the beginning in line with the ethos of their Japanese Collaborator. This emphasis on quality at product design, manufacturer and vendor selection has given TELK ample returns by way of customer confidence their products enjoy today.

3.3.10 QUALITY OBJECTIVES

Continual improvement of business excellence through Reducing business cycle time. Achieving lowest manufacturing cost. Technology up gradation Reducing rework level Increased customer satisfaction

3.3.11 ISO CERTIFICATION

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TELK LIMITED The systems, standards are procedures spelt out by Hitachi and religiously followed by TELK helped the company to achieve the coveted ISO 9000accreditation with comparative case. TELK has been certified as an ISO 9001accredited company by KEMA. TELKs project Engineering and Consultancy services are one of the first such divisions of any company in India to have got certified under ISO 9000 series. TELK has been recently accredited with ISO 9001 certification with respect to the following scope: Design, Development, Production, Installation and Servicing of Transformers, Switchgear, Bus Ducts and Substations which is the first such comprehensive certificate in Indian Power Transformer Industry.

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TELK LIMITED

PRODUCTION PLANNING AND CONTROL

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3.4

ORGANISATIONAL STRUCTURE
CHART NO 6

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3.4.1 PRODUCTION PLANNING AND CONTROL

The role of planning & Control Department is to plan & schedule manufacturing activities & liaison with Sales, Design, Manufacture, Purchase, Quality & Testing so as to ensure quality & delivery of products & services to the specified requirement.

3.4.2 DUTIES AND RESPONSIBILITIES

Head & Sub Head of Planning Department: Strategic planning of production Plan & arrange materials in time Prepare annual production plan & schedules Prepare & submit statutory reports Strategic planning of transformer production Inter departmental/ division co-ordination Plan & Co-ordinate the activities in each production centers Highlight delays, shippages & other problems in production meetings Co-ordinate the facilities, materials & components for the production To receive order intimation from sales department Implement management instructions & ISO requirements in Planning Furnish data to the management on Production Performance Carry out & implement management instructions & decisions from time in planning.

3.4.2.1 ENGINEERS IN PLANNING

Follow-up of materials with purchase & co-ordinate inspection Attend review meetings & report material position Keep records & registers related to the areas Dept. of Management Studies ASIET

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TELK LIMITED Report production problems to higher authorities Co-ordinate the activities of various shops involved in the manufacture of the product in this area Arrange works contract , issue & receive materials against works contract Prepare production schedules & programmes allocate materials & components to the various jobs in his area in consultation with his superiors Timely arrangement of materials, parts & components in their respective areas. Monitor stock & status of purchase requisitions. Get clarification from Design, regarding material requirement & specification. Various jobs in his area in Consultation with his Superiors.

3.4.3 MATERIAL REQUIREMENTS OF PLANNING

Materials requirement planning & scheduling including communications of requirements & specifications to purchase department Management Reporting To maintain quality records related to planning department Regular liaison with purchase, inspection & stores for making materials available as per the plan

3.4.4 THE VARIOUS FUNCTIONS OF THE PLANNING DEPARTMENT

To plan Yearly/ Quarterly/ Monthly Production & Schedule manufacturing activities of various products. Receipt of drawings/specs from design. Distribution and control of drawings, specifications, instructions etc. among Manufacturing, Inspection & Purchase Departments. Liaison with Sales, Manufacturing & Quality Department for Customer Inspection / Clearance. Dept. of Management Studies ASIET

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TELK LIMITED Control of release of materials to various manufacturing sections, including inter-shop transportation of materials & parts wherever necessary. Required documents are maintained for control of release of materials to various manufacturing sections. Co-ordination for review of deviations & non conformities observed during production & inspection. Co-ordination & control of production activities including periodic review with the concerned personnel & modification of production programmes wherever necessary according to the customer requirements, availability of materials etc. Preparation of productivity Earning Report based on the accepted norms on standard man hours & as per the terms & conditions of production Agreement mutually agreed up on by the management & the unions from time to time. Conducting work activity analysis & preparing the study data as a report.

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TELK LIMITED

INDUSTRIAL ENGINEERING DEPARTMENT

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3.5 INDUSTRIAL ENGINEERING DEPARTMENT

3.5.1 FUNCTIONS OF INDUSTRIAL ENGINEERING

Preparation of productivity Earning Report based on the accepted norms on standard man hours & as per the terms & conditions of production Agreement mutually agreed up on by the management & the unions from time to time. Conducting work activity analysis & preparing the study data as a report.

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TELK LIMITED

MARKETING DEPARTMENT

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TELK LIMITED

3.6 ORGANISATIONAL STRUCTURE

CHART NO 7

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TELK LIMITED

3.6.1 MARKETING DEPARTMENT

3.6.2 RESPONSIBILITIES & AUTHORITIES
Chief of Marketing Department Overall Responsibility For: Co-ordination with in department, inter department & Regional Offices Co-ordination of dispatch, shipment etc. Monitor order execution \ processing, collection of receivables etc. Tender Review & Order Review Handling of Customer Complaints Control of Department manual instructions and standards Study internal quality reports and initiate timely corrective actions. Head of Marketing Assist to Chief of Marketing Department Direct responsibility relating to Preparation & Issue of Department Manual Handling of Customer Complaints And any other works as assigned by the Chief of Marketing Departments. In charge Product Group / Export/ Area Incharge Preparation of offer/ Quotation

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TELK LIMITED Correspondence with Customers Review of Orders Co-ordination with other Departments Co-ordination of After Sales Service ( Export ) Invoicing & Payment Collection Maintain records related to Contract Review & Co-ordination Activities Engineers & Other Officers Assist Incharge Product\ Export \ Area Incharge in their respective area Regional Manager Liaison between Head Office & Customers in the concerned region in marketing related works. Co-ordination of other functions like Purchases, Finance etc. between Head Office & other organizations. Administration of Regional Office

The role of Marketing Division is to book sufficient orders from domestic & International market to feed factorys production, proper liaisoning & interaction with customers directly & through Regional offices, interfacing between customer & various departments in the factory for the execution of contracts including the related commercial work.

3.6.3 OBJECTIVES
The objectives of Marketing Division are as follows:Continual Improvement of business excellence through On time delivery of Quality Products. Rapid response to customer. Attend customer complaints with in one month. Dept. of Management Studies ASIET

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TELK LIMITED Analysis of customer perception & appropriate corrective action.

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TELK LIMITED 3.6.4 MARKETING PRINCIPLES:Prompt Delivery When the cost of delay is so punishing, you need a supplier like TELK who understands the importance of timely delivery. Excellent Service to Customers TELK realizes that customers are their strength and thus services to customers is of highest priority to TELK. Uncompromising Quality Standards TELK is a synonym for quality in the EHV power field in India and at TELK, quality is a way of life. Value for Customer Good value for money is the basic for pricing of TELK products and many of their customers are aware of the premium price which TELK is eligible for.

3.6.5 STRATEGIC PLAN

The marketing strategy proposed for survival and growth is as follows:Pricing The company is now unable to effectively combat the price war which has set in recently. Cost effective technology & high levels of labour productivity are the basic necessities to tide over the present situation optimum quality products with most competitive price are also very important

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TELK LIMITED Receivables Management Non- realization/ delay in realization of payments from customers is one of the main Problem faced by the company. Hence the primary need is to reduce the receivables level substantially emergent & massive collection programme with the help of agents & regional offices is proposed to bring down the receivables level. A permanent & efficient machinery for following up the receivables & to collect Payments is also proposed. Selection of Customers Another Strategy is to concentrate more on Independent Power Projects, Industrial Customers, Railways, Captive Projects & so on. A preferential approach to customers having better paying capacity has to be resorted to & the dependence on weak state. Electricity Boards has to be minimized to the extent possible. Diversification Due to the present financial position of the company it is difficult to make huge Investment for product diversification. Hence more attention has to be given to related items which can be taken up with marginal Investment with better use of available technology the company can easily diversify to areas such as special types transformers, Dry type transformers, Loco transformers & capacitors& speedy inclusion of the above items in the product list of the company has to be emphasized. Transportation Despatch & transportation of all finished products/parts are arranged coordinated by Marketing Department. Despatch Review is conducted every month. Suitable Vehicles are arranged according to the requirement of the concerned execution.

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TELK LIMITED 3.6.6 EXPORT TELK has been exporting its products right from the 1970s. However a real boost to TELK, export marketing efforts came with the recent opening up of the Indian Economy & the subsequent globalization measures of the Indian Government. The first major export of TELK consisted of 2Nos.50MVA, 132 KV Transformers to Tanzania in 1972.This was followed by a few exports of Power Transformers & Instrument Transformers to countries like Nepal, Iran, Cambodia & Malawi. TELK has bagged & executed many sizeable export contracts to many countries like Indonesia, Malaysia, Oman, Nigeria, USA & so on. Due to financial & internal problems faced by the company, the export was little less up to 2003-04. There after TELK has been concentrating only on Oman market & in the year 200506, TELK had made record in export turn over by supplying Transformers worth Rs.2633lakhs to Oman only( 125 MVA ). TELK had been following a very stringent quality standard laid down by their collaborators M/S Hitachi, Japan & this has enabled TELK to penetrate new overseas markets against stiff competition from Multi national giants.

3.6.7 CUSTOMERS OF TELK

The customers of TELK are National Customers International Customers

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TELK LIMITED Major Customers in India All large Electrical Power Utilities in India are the Customers of TELK (both Public Sector and Private Sector Utilities ). Few important customers of TELK are: Nuclear Power Corporation Limited National Thermal Power Corporation Power Grid Corporation of India Ltd. National Hydro Electric Power Corporation All state Electricity Boards Tata Power Company Reliance Energy Limited Siemens Ltd. Asia Brown Boveri Ltd. Larsen & Toubro Limited Damodar Valley Corporation Neyveli Lignite Corporation International Customers of TELK Bangladesh Cambodia Indonesia Iran Malaysia Mauritius Nigeria Nepal Oman Singapore Tanzania USA Dept. of Management Studies ASIET

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TELK LIMITED Vietnam

3.6.8 COMPETITORS OF TELK

There are National & International Competitors

National Competitors
Market Share 42 30 10 8 10 Installed Capacity 4000 MVA 1000MVA 5000MVA 4500 MVA Competitor BHEL( Bharat Heavy Electrical Ltd. ) CGL ( Crompton & Greaves Ltd. ) GEC ( General Electrical Ltd Company ) TELK Bharat Bijili, Andrew Yule company, Eswar & Son,Kirlosker, New Govt Electrical Company ) TABLE 4 International Competitors ABB-( Asia Brown Boveri ), Finland SIEMENS- Germany AROWAY-France AE Power System Japan VATECH ( Austria )

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3.6.9 INPUT/ OUTPUT MATRIX

CHART NO 8

INPUT

PROCESS

OUTPUT

Market Data Tender/ Enquiry Customerorder Equipment for Processing Payments/Documents from customer

Tender/ Offer Preparation & Review Order Review Interaction with other department Correspondenc e-e with Customer

Offer to Customers Order to Factory Products/ Services to Customer Invoices to Customers

3.6.10 FUNCTION/ PROCESS

The various processes that are dealt with the Marketing Department are as follows Reviewing enquiries for adequacy & capability to measure requirements. Reviewing orders in association with design. Interacting with the customer for resolving conflicting measurements of the contract. Handling of customer complaints. After sales service of Export Contracts. Maintaining records of contract review. Dept. of Management Studies ASIET

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3.6.11 ENQUIRY/ TENDER REVIEW

All enquiries pertaining to the products are received by Marketing Division through Regional offices, Agents, & directly from customers. Marketing Division conducts Preliminary reviews & decide capability to execute it. Tender Registration is done in Computer. on deciding participation, technical part of the enquiry is forwarded to Design Department along with tender. Enquiry Processing Computer format for cost estimation & preparation of technical specifications & commercial review is done by Marketing Division.

3.6.12 CUSTOMER COMPLAINTS

All the customer complaints received during the guarantee period shall be resolved. All after sales service of export contracts is processed by Marketing Division. Appropriate offer/ Contract is made & reviewed separately along with main order.

3.6.13 CUSTOMER SERVICE DIVISION

For giving better after sales service & customer care TELK has a separate wing Rapid Response Customer Service Department. They will give quick response / reply for attending the repair/rectification work for TELK products.

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3.6.14 CHART NO 9

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FINANCE DEPARTMENT

3.7

ORGANISATIONAL STRUCTURE
CHART NO 10

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3.7.1 FINANCE DEPARTMENT

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Finance department is another important department of TELK. Finance departmentis headed by Manager ( Finance ). He deals with the whole financial aspects of the company. Under his control, there are departments like Books & Accounts, Tax Affairs, Bill department, Costing, Cash, Wage Administrations & Final Accounts Expansion of the items of organizational charts as follows MD - Managing Director MRC- Manager Accounts DMC- Deputy Manager Accounts AO (AD)-1-Assistant Officer Audit-1 AO (A)- Assistant Officer ( Accounts ) AO ( F&A ) Assistant Officer( Finance & Accounts ) AO ( B )- Assistant Officer ( Bills ) AO ( T) Assistant Officer ( Taxes ) AAO ( C) Assistant Accounts Officer ( Costing ) AO ( Books ) Assistant Officer ( Books ) J O ( AD )- 1- Junior Officer ( Audit-1 ) J O ( W )- Junior Officer ( Wages ) JO ( F )- Junior Officer ( Fund ) JO ( F & A )- Junior Officer ( Finance & Accounts ) JOB- Junior Officer ( Bills )

3.7.2 RESPONSIBILITIES OF DEPARTMENTAL AUTHORITIES

The head of the finance department is Manager ( Accounts ). ( MRC ). Deputy Manager Accounts ( DMC ) is directed to MRC all matters relating to Audit, Finance & Accounts, Bills, Taxes, Costing, Books etc. All these sections are headed by DMC. Assistant Officer Audit-1 Dept. of Management Studies ASIET

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TELK LIMITED

He is the head of 2 Junior Officers. Such as Junior Officer ( AD-1) & Junior Officer ( AD-2 ). Their main job Internal Audit of all Proposals, Invoices, Receipts, Payment Vouchers & Verification of Vehicles & Documents in respect of Conveyance Allowance. Assistant Officer ( Accounts ) He is the head of 2 junior officers. Such as junior officer ( wages ) & junior officer ( funds ). There are 7 assistants for junior officer ( wages ). The main duties of the assistants are as follows: Travelling Allowances Bills, Accounts Receivable, Book keeping. Court Attachments, ESI, Medical Bills of Office Staff & Allied Works. TDS ( Salary ), Settlement, Supplementary Payments & Allied Works. Salary Recoveries, Journal Entries, Fixation, Leave Benefits, Professional Tax, Welfare Fund, Medical Bills of Officers & Allied Workers. Development of all software for the F&A Department, Salary Certificates, Managerial Remuneration, House Loans & Allied works. Preparation of Salary, Incentive, Bonus, Supplementary Payments & Allied Works. Medical Bills of workmen, Medical Advances, Salary Preparation & Allied Works. Junior Officer ( Funds ) There are 3 assistant for Junior Officer ( funds ). The duties of his assistants are as follows: P.F, Pension, EDLIS works of company & Canteen Balance Sheet, Employee Statement, and Company House Loans Allied Works.

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TELK LIMITED Gratuity, Advance/Settlement of PF, Reconciliation, Returns, Investments, Maintaining of Records & Registers & Allied Works. Receipts of Cash, Cheques etc Cash Disbursement, Maintenance of Related Records and Allied Works. Assistant Officer ( F& A ) He is the head of Junior Officer ( F&A). Junior Officer ( F&A ) has two assistants. The duties of the assistants are as follows: Interaction with Banks, Bank Guarantees, Bill Negotiation, Cheque / DD Payment. TDS other than Salaries, Tax Returns & Allied Works. Assistant Officer( Bills ) He is the headed by DMC ( Deputy Manager Accounts). AO ( Bills ) is the head of Junior officer Bill-1 & Junior Officer Bill-2. There are 5 assistants for JOB-1 & JOB-2. The main duties of the assistants are as follows: 1. Processing of Bills 2. Valuation of Receipt Vouchers 3. Analysis of Ledgers 4. Interaction with bank arrangements of Insurance policies & Allied Works. Assistant Officer ( Taxes ) He is the head of tax related matters. He has 3 assistant. The duties of his assistant are as follows:

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Invoice preparation and all central excise matters & allied works. Assistant Accounts Officers ( Costing ) He is directly headed by DMC. He has 2assistants. The main duties of the assistance are as follows: Costing, Management, Information, BIFR matters and all sales tax matters and allied works. Assistant Officer( Books ) He is directly headed by DMC. He has 3 assistants. The main duties of the assistance are as follows: All works relating to Book Keeping Preparation of Balance Sheet Audit Works Income Tax matters & Management Information & Allied works. Service Section Steno-typist, Attender, DCP Attenders etc are coming under service section. The service personnel shall be common to all the operating section. For administrative Convenience, they shall submit their leave application to AO ( F& A ) who shall forward the same with recommendation to DMC/MRC.

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TELK LIMITED 3.7.3 CAPITAL STRUCTURE OF TELK Capital structure of TELK is made up of shareholders funds & loan funds. Shareholders funds include equity share capital & resources & surplus where as loan funds consists of secure loans. Also it contains sales tax dues amounting to 1219.54lakhs which has been deferred by the Government of Kerala up to 2002 without interest.

3.7.4 PERFORMANCE OF TELK

During the year 1966-1980, the company is in a profitable stage. During the year 1972-1980, 12% dividend was declared. During the years 1980-1990, the company faced a loss stage. During the year 1987, TELK incurred a loss of Rs9crores. During the year 1991-1998, again the company incurs a loss stage. During the year 2002,2003,2004,2005& 2006 the company shows a profitability stage. In the year, BIFR ( Board for Industrial & Finance Reconstruction ) declared sick unit & appointed IDBI as operating agency. So at that time, the TELK is under the control of BIFR.

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3.7.5 PRESENT SHAREHOLDING PATTERN IN TELK

Existing Structure Govt of Kerala value 1119.41 49.20 _ _ 104.00 48.45 36.25 1357.31 % 82.47 3.63 _ _ 7.66 3.57 2.67 100.00 TABLE 5 value 3340.95 49.20 503.64 214.24 104.00 48.45 36.25 4296.73 % 77.75 1.15 11.72 4.99 2.42 1.13 0.84 100.00 After conversion of reliefs & concessions as per

KSIDC TTP SIDCO Hitachi, Japan F/S Public Total

3.7.6 INTERNAL AUDIT OF TELK

After the incorporation of Transformers & Electricals Kerala Ltd in 1963 an Internal Audit section was formed by the management by its Order No 80 dated 31st January 1977 & this was functioning initially under an accounts officer. Now the selection was headed by Assistant Manager. This section is at present mainly concerned with checking of payments, pre-audit of purchase proposals etc. In order to cover other areas outside Chartered Accountants firm is also being engaged as Internal Auditors.

3.7.6.1 DUTIES OF INTERNAL AUDITOR

Internal Audit is headed by Assistant Manager Audit & he is assisted by one Assistant officer Audit & One Junior Officer Audit. Their responsibilities are Proposals, Invoices, Receipts , Payment Vouchers & Verification of Vehicles & Documents in respect of of conveyance allowance.

3.7.7 ACCOUNTING POLICIES USED IN TELK

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TELK LIMITED Accounting Concepts:-

The company follows the mercantile system of accounting, recognizes income & expenditure on accrual basis & the financial statements are prepared under the historical cost convention in accordance with the applicable accounting standards & requirements of Companies Act 1956. Accounting policies not referred to otherwise are consistent with generally accepted accounting principles. Use of Estimate:The presentation of financial statements requires estimation & assumptions to be made that affect the reported amount of assets & liabilities on the date of financial statements & The reported amount of revenues & expenses during the reporting period. Difference between the actual result & estimates are recognized in the period in which results are known / materialized. Fixed Assets & Depreciation:Fixed Assets are stated at cost less accumulated depreciation. The company follows the written down value method of charging depreciation on all its fixed assets. Depreciation is charged at the rates prescribed Under Schedule XIV of the Companies Act 1956, as amended by Notification No7.56( E) dated 16.12.1994 for the full year. Depreciation of additions to assets or on sale of assets is calculated pro-rata from the date of such addition or up to the date of such sale as the case may be. Foreign Currency Transactions:Transactions denominated in foreign currency are normally recorded at the exchange rate Prevailing at the time of transactions. Monitory items denominated in foreign currency At the year end are translates at year end rates. Any income or expenses on account of exchange rate difference either on settlement or at the time of translation is recognized in the P & L a/c.

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TELK LIMITED Contingent Liabilities:Contingent Liabilities are not provided for & are disclosed by way of notes. Investments:Investments are stated at cost. Retirement Benefits:The companys contribution to the provident fund is charged against revenue every year. Provision for actuarial gratuity liability is made in the a/cs based on the actuarial valuation by the LIC group insurance scheme. Provision for accumulated leave encashment is made on amount of leave eligibility / salary on actuarial valuation. Claims for Liquidated Damages etc.:Claims against the company on account of interest to suppliers, interests on advance received from customers etc are taken in the accounts only on acceptance. Provision for liquidated damages is made in the accounts to the extent they are considered doubtful of recovery. Deferred Tax:The company has not recognized deferred tax asset. The company has unabsorbed depreciation & carry forward of losses under the tax laws. However, it is not possible to estimate with virtual certainty supported by convincing evidence, the extent to which future taxable income will be available against which such deferred tax asset can be realized. Inventory Valuation:-

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TELK LIMITED (a) Stock of raw materials & stores are valued at average cost, net of credit of duty of excise.(b) Stock of raw materials in bonded warehouse & materials in transit are valued at cost excluding customer duty payable, if any on clearance. (c) Stock of scrap is valued at realizable value.(d) Jigs & Fixtures & Stock of Tools are revalued & stated at cost or revalued price, which ever is lower.(e) Finished goods are valued at cost or net realizable value which ever is lower.(f) Work in Progress is valued at weighted average cost of materials plus proportionate share of labour & manufacturing overheads including depreciation, but excluding financial overheads or the realizable value based on the cost of completion, which ever is lower.(g) Value of materials considered for the above is net of Modvat Credit.

3.7.8 CHART NO 11

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3.7.9 CHART NO 12
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TELK LIMITED

SECRETARIAL DEPARTMENT

3.8

SECRETARIAL DEPARTMENT 82

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Secretary

JO

Assistant

A Company with above 3crores paid up capital a Company Secretary is must as per Companies Act. So TELK has a Company Secretary.

3.8.1 FUNCTIONS OF SECRETARIAL DEPARTMENT

Share Transfer & Share Issue is the main function of Secretarial Department. To prepare Agenda for Board Meetings in Consultation with MD. To write minutes in Board Meetings Controlling of Company Vehicles.

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CHAPTER 4

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4.1 FINDINGS

Some of the findings that I could get from my studies are: In the Senior Management Cadre lot of posts are vacant. Gas Circuit Breakers has been removed from the manufacturing range

which was contributing the 10% of turn over. The products are well accepted in the market due to its International

Quality Standards. Promotions of the employees are not happening periodically.

Recruitment are not being affected for a long time, both in officer and

workmen categories.

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SWOT ANALYSIS

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4.2 SWOT ANALYSIS

S W 0 T Strength of TELK Weakness of TELK Opportunities of TELK Threat of TELK

4.2.1 STRENGTH OF TELK: The Company has developed a dedicated work force. Most of the labourers are skilled and hard working. National highways & Railway station are very near to TELK. So transportation facility easily available. The Company had maintained a very good Quality Assurance of the products. So it creates a good customer relation. Company gave an important position for labour welfare. So employees cooperation make very attractive. The Company had achieved ISO-9001 Certification. There is a technical collaboration with Hitachi Ltd, Japan

4.2.2 WEAKNESS OF TELK: Non availability of materials in Kerala. Plant & Machinery are old & not updated . It affects production & order execution time. Advertisement is less.

4.2.3 OPPORTUNITIES: Increasing Export of transformers. Try to penetrate into Kerala market. Introduce new products.

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4.2.4 THREATS OF TELK

Heavy competition from local markets. Local markets made many low quality transformers & sell them at low price. Price of raw materials are highly fluctuating. Electricity shortage in Kerala

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RECOMMENDATIONS AND SUGGESTIONS

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4.3 RECOMMENDATIONS AND SUGGESTIONS

It is obvious that TELK is producing only high capacity Transformers & components. If the company can also make auxiliary Power Plant Equipment components to increase its product line & depth, then definitely TELK can have a good markets particularly in the domestic field as well as in overseas markets.

TELK should expand its own R&D division. This may help the company to reduce the cost of production in the later stage and also can help the company to venture into new areas in fast pace with latest technical knowledge.

Company should make effective utilization of the Regional Offices for getting orders. The experts in the regional offices should take initiative for getting contracts.

Machineries & Technologies used by the company are very old. So there is essential need to implementing latest technologies. It increases the production capacity.

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CHAPTER 5

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5. 1 CONCLUSION

TELK is a leading manufacturer for the export quality transformers in India & Abroad. Competition is natural. TELK meets this type of competition by way of quality of the products. This company is at its strive towards excellence through the combined efforts of its management and the dedicated work force. The main positive aspect of the company is that it should maintain a better relationship between the management& employees. All the trade unions are maintaining a better relationship to the company. To sum up, TELK had adapted to a culture of meeting customer requirements and puts in place the system & practices aiming customer delight . Currently, TELK are adapting the management style of integrating quality, scientific approach & better team building. At TELK they look at every challenges as a new opportunity to grow.

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5.2

BIBLIOGRAPHY

Annual Reports of TELK, Angamally Product Brochures of TELK, Angamally Departmental Manuals of each Department at TELK www.telk.com Research Methodology, L. R. Potti

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