JK TYRE INDUSTRIES LTD

INTRODUCTION
Industry profile INTRODUCTION The world rubber industry had made its beginning in the year 1887 with the invention of the rubber vulcanization process by Mr. Charles Goodyear. However, the growth of the industry received a big boost towards the end of the century when Mr. John Boyd Dunlop succeeds in the making vulcanized rubber in to inflatable pneumatic tyre in1888. Since then the tyre industry has continued to be a major segment of rubber industry all over the world. Even in India, automobile tyre & tubes account for a major part of Indian rubber product industry.

INPUTS FOR TYRE INDUSTRIES The major raw materials and there weightage in the total raw material structure are as follows SL no. 1 2 3 4 RAW MATERIALS Natural rubber Synthetic rubber Carbon black Nylon Fabric cord PERCENTAGE 25% 14% 13% 34%

JK TYRE INDUSTRIES LTD

JK PROFILE
JK TYRE INDUSTRIES A BRIEF PROFILE COMPANY PROFILE NAME : JK Tyre &Industries ltd : JK Tyre & Industries ltd VIKRANT TYRE PLANT KRS road, metagalli, Mysore-570002. CONSTITUTION : Limited Company

ADDRESS

Date of incorporation : October 3, 1973 Commencement of business : October 11, 1973 Product : Automobile tyres, flaps

REGISTERED OFFICE :VIKRANT HOUSE NO.4, first main road V.V mohalla, mysore-02 COMMUNICATION LINKS GRAMES : Vikrant Tyres E-mail : hrd@vikrant.com FAX: :( 0821)2582404

TELEPHONE NO. :( 0821) 2511540, 2582954 JK organization owes its name to late Lala Juggilal Singhania, a dynamic personality with broad vision. Inspired by the cause of the Swadeshi movement 2

JK TYRE INDUSTRIES LTD of Mahatma Gandhi, & driven by the zeal to set up an Indian enterprise, Lala Kamlapat Singhania founded JK organization in the 19th century ushering in new industrial era in India. The process of industrialization & diversification was worthily & successfully carried on by Lala kamlapats three illustrious sons- Sir Padampat, Lala Kailashpat & Lala Lakshmipat. Excellence comes not from mere words or procedures. It comes from an urge to strive and deliver the best. A mindset that says, when it is good enough, improve it. It is a way of thinking that comes only from a power within." H.S SHINGHANIA JK Tyre & Industries Ltd. is the flagship company under the umbrella of JK Organization The advent of JK Organization on the industrial landscape of India almost synchronizes with the beginning of an era of industrial awareness - an endeavor for self reliance and the setting up of a dynamic Indian industry. This was way back in the middle of the 19th century. The Principal business of the JK Organization includes Tyre, Paper, Cement, Drugs & Pharmaceuticals, Agri Genetics, Dairy and Food Products, Audio Magnetic Tapes, Sugar, Cosmetics, Woolen Textiles, Steel, Engineering Files, International Trading, Hybrid Seeds, Industrial Rubber Products, Material Handling System etc The group besides having a consistent record of growth and diversification has created a reputation for quality for all its products and most of its products enjoy a leadership status in their respective market segments.

MILESTONES OF J.K.INDUSTRIES LTD 1933 First in the India to manufactures calico princes-Juggilal Kamlapat Cotton Spinning and Weaving Mils Co., Kanpur. 1940 First in India to manufacture steel bailing hoops for jute and cotton and to make the country self sufficient by meeting the entire demand J.K.Iron and Steel Co.,Ltd., Kanpur 1944 First in India to produce Aluminum virgin metal from Indian Bauxite Aluminum Corporation of India Ltd., Jaykaynagar. 1949 First in India to manufacture Engineering Files -J.K.Engineers Files, Bombay. 3

JK TYRE INDUSTRIES LTD 1959 First in India to set up a continuous process Rayon plant. 1960 First to manufacture a Hydraulically operated cane crushing mill for Khandsari Sugar Plant and completed 100 ton plant- J.K.Iron and Steel Co. Ltd., Kanpur. 1961 First in world to set up a plant for production of Hydrosulphite of Soda by Sodium Amalgam process-J.K.Chemicals Ltd., Bombay. 1962 First in India to produce Nylon-6 with its own polymerized raw materialJ.K.Synthetics Ltd., Kota. 1965 First to produce Sodium Sulphoxylate Formaldehyde (Rangolite c of Formosul) in India J.K.Synthetics Ltd., Kota. 1968 First to manufacture TV sets in India-J.K.Electronics, Kanpur. First to manufacture Metallic. Cops for Synthetic Filament yarn industrial in IndiaSyntax tube works, Kanpur 1973 First in India to license Synthetic Fiber Technology to third party as well as the first to manufacture Synthetic Filament yarn industrial in India-Syntax tube works, Kanpur. 1976 First in India to produce Steel Belted Radial Tyres fro passenger cars, trucks and buses-J.K. Tyre Plant, Kankoli.

1980 First in world to make Steel Belted Radial Tyres for passenger cars, trucks and buses-J.K.Tyre Plant, Kankoli. 1984 First in India to produce White Cement through dry process-J.K.White Cement, Gotan. 1985 First to India to produce Cathonic Dyeable Polyester Fiber J.K.Synthetics Ltd., Kota. First in India to produce Nylon Tyre cord base on Spin Draw TechnologyJ.K.Synthesis Ltd., Kota. 1989 First to India to produce Magnetic Tapes with Cobalt Technology J.K.Magnetics, Surpajpur. 1991 Banmore Tyre Plant (BTP)set up with a capacity of 5.7 lakhs tyres p.a. 1992 R & D Centre set up at HASTERI. 1994 Indias first T-Rated tyre launched BANMORE Tyre Plant (BTP) crossed 100TPD. 1995 Mercedes Benz launched on J.K.STEEL RADIALS First tyre manufacturer in the world to get ISO 9001. 1997 Awarded the National Export Award for 1996-97 Vikrant Tyres (VTL) acquired. Indias firs H rated tyre launched. Only tyre manufactures to getE mark certification. HASETRI becomes the first research institute in Asia to get ISO 9002. 4

JK TYRE INDUSTRIES LTD 1996 Indias first dual contact high traction Steel Radial aqua sonic Launched. Introduces Steel Wheels. 1998 First tyre manufacturer in the world to get Qs 9000. Awarded CAPEXILs highest export award for 1997-98 1999 Synergy with VTL in procurement, marketing and production flexibility. Completion of Stat of the art modernization of truck radials. J.K.Tyres ranked 1st largest Tyre Company in the world. ISA-14000 accredition for environment and safety. 2000 J.K. introduced National Go-karting Champion slips. 2001 J.K. industrial received FOCUS LAC export award for he year 1999-2000.

MILESTONES OF VIKRANT TYRES LIMITED Joint Venture by SIEC Pvt. Ltd., and KSIIDC conceived to manufacture 1970 Automotive Tyres and Tubes at Mysore. 1973 Incorporated as a joint venture company by KSSIDC and SIEC Pvt. Ltd., Madras(Chennai) 1977 Taken Over by Government OF Karnataka through KSIIDC 1980 Commercial Production Commenced 1982 Collaboration with M/s AVON Tyres UK. 1985 T-Pilot plant setup for manufacturing of truck Radial Tyre Plant. 1989 Construction of new Truck Radial Tyre Plant. 1991 Commercial Production of all steel Truck Radial Tyre. 1992 First against OTR tyre rolled out. 1994 Certified to IS 9001: 1994 quality management systems. 1997 JKIL inducted as strategic Alliance Partner (SAP) by government of Karnataka 1999 Certified to QS 9007:1998 QMS and also 14001:1996 Ems. Turnaround under JK management within 10 months and declared divided after a gap of 6 years. Massive modernization and up gradation investing Rs. 224.13 Crores. 2000 March Bias plant Rs. 73.16 Crores. December Truck Radial plan Rs .150.97 Crores. 2003 Merged with JKIL. Certified to ISO/RS 16949:2002 process based QMS. 2004 First Indian tyre company to adopt process based management through Business Process Re-Engineering (BPR)

JK TYRE INDUSTRIES LTD

Board of Directors of JK Industries:

Chairman Vice Chairman & Managing Director Directors : Hari Shankar Singhania : Raghupathi Singhania : Arvind Narottam Lalbhania Arvind Singh Mewar Bhakul Jain Managing Director Dy.Managing Director : Bharath Hari Singhania : Vikrampati Singhania

PRODUCT PROFILE
PRODUCT PROFILE The products are sold under different brand names Track Tyres
o o o o o o o o o o o

Jet rib Vikrant track king Star lug Super track king Hi life Jet star Track plus J T classic Jet track Sand cum hiway J T king 6

JK TYRE INDUSTRIES LTD

PRODUCT RANGE
INTERNATIONAL JK Tyre is a leading exporter of tyres from India and roughly accounts for about 26% of the total tyre exports from India (along with its associate Vikrant Tyres Limited). It is the first and only tyre manufacture in the world to receive the QS 9000 for multilocation operations: World's first tyre manufacture to receive the ISO 9000 for all its operations in one go. Also J.K Tyres is the first tyre company in India to receive ISO 14001 in recognisition of its environmental management systems. Today, JK Tyre's products compete with the best international players in the premium international bias market in more than 55 countries in 6 continents. The exports operate through a strong and dedicated distribution network, and our distributors are fully supported by the company's technical team in terms of continued product development to meet specific market needs. JK Tyre had obtained international accreditation for its products in the US, Europe, South America and the Middle East. J.K Tyre has been the recipient of various awards for exports for the last many years for its commitment to offer superior performance standards & path -breaking innovations. Recently, it was honored with ' The Special Export Award 2000-2001' from Capexil, making it its fourth consecutive award from India's premier industrial association. JK Tyre has also been recently recognized by Indian Trade Promotion Organization (ITPO) for being the largest tyre exporter to Latin America markets and is the proud recipient of first-ever FOCUS LAC Award for the year 1999-2000. J.K Tyres constant endeavor to deliver superior value to its customers and a sound marketing strategy forms the foundation of this spectacularly consistent performance on the international front. While JK Tyre has maintained its consistency in its marketing and distribution strategies for the export markets, it has also actively pursued development of new superior products to adapt to specific requirements of the different markets. The credit goes to the India's biggest in-house R&D centre, HASETRI (Hari Shankar Singhania Elastomer and Tyre Research Institute) . This Centre for Rubber and Allied Technology was established at Jaykaygram, ISO/IEC Guide 25 & EN 45001. Equipped with advanced testing facilities, it pursues excellence by evolving technologies for superior product performance to reduce waste and pre-empt consumer needs.

JK TYRE INDUSTRIES LTD

DOMESTIC J.K. Tyre has been at the forefront of the radial revolution in India. Since inception, we have been regularly releasing high quality, high technology products, which have withstood the test of time and are forerunners in the industry today. Our leadership position in the industry can be attributed to the mantra of offering high technology products and services to the customer. In J.K. Tyre, it is our philosophy to continuously anticipate and understand the customer requirements, convert them into performance standards for our products and services, and meet these standards every time. This has resulted in development of many innovative products from the most modern, technologically advanced production facilities, some of which are listed below :

First manufacturer to launch "T" rated tyres in 1994-Ultima. First manufacturer to launch "H" rated tyres in 1996-97-Ultima 210 H. First manufacturer to launch Dual Contact High Traction Steel radialsAqua sonic First manufacturer to introduce India's first range of eco-friendly colored tyres. First manufacturer to introduce V-rated uni-directional tyre in 2006 First manufacturer to produce special application Z-rated motorsports tyre in 2006 Maruti SX-4, Maruti Swift and Mahindra Renault Logan Rides exclusively on JKTyres.

ACHIEVEMENT/AWARDS

JK TYRES ranked 16TH largest tyre company in the world. ISO-14001 accreditation for environment & safety. Indias first T-rated tyre launched. The only tyre manufacturing company got E-marks certification. Awarded by CAPEXILS highest export award for 1997-98. Certified by ISO 9001:1994 quality managements systems. First Indian Tyre Company to adopt Business Process Re-Engineering (BPR).

JK TYRE INDUSTRIES LTD

It has ranked number one in customer satisfaction by the JD power Asia pacific study.

FUNCTIONAL DEPARTMENTS OF JK INDUSTRIES

There are the functional departments at JK Industries (Vikrant type plant) [JK] (VIP) and they are follows. 1. Materials 2. Production 3. Engineering 4. Technical 5. Quality Assurance 6. Human Resource Management 7. Production Planning 8. Personal & Administration Secretarial 9. Internal audit 10. Electronic Data Processing (EDP) 11. Industrial Engineering 12. Finance 13. Marketing 14. Technical services. Due to time constraint, only the basic departments such as production, marketing, Human Resources and Finance, quality assurance have been studies. 1. MATERIALS STORES DEPARTMENT: There are the three stores in JK industries (Vikrant tyre plant);

Raw materials stores Engineering stores Finished goods stores

The function of raw materials stores and finished goods stores are centralized in the Head Office itself. For all 4 plants of JK industries the Head Office itself controls purchase decisions and supply of raw

JK TYRE INDUSTRIES LTD materials.

RAW MATERIALS STORES In JK industries (Vikrant Tyre plant) follows First in First Out method for inventories. Everything is controlled by the head of the department. Some of the raw materials accumulated in stores are Natural rubber, Synthetic rubber, Chemicals (Sulphur, Zinc oxide), Carbon and so on

FINISHED GOODS STORES The finished goods are stored & preserved in finished goods stores in order to protect it from rain, dust & water. The duty of FGS head to distribute the finished goods directed by the supply chain management. Supply chain management decides the day to day distribution. All the finished goods after the final inspection are kept at the transferring area. A finished goods transfer note is prepared in triplicate copies. The note contains details about material description & quantity. The original copy is sent to central excise wing & duplicate to production department & another copy to production & planning control (PPC) department. The current status of the stock can be checked by using transfer notes. If the finished goods require packaging then it transfers to packing area. If not it is send to storage area.

STAGES IN TYRE MANUFACTURING PROCESS

1. COMPUND AT BANBURY Compounding is the process of mixing the necessary raw materials with selected Elastomer in the banbury. Banbury is an internal mixer, which consists of a completely enclosed mixing chamber with two spiral shaped rotors. There is a hoper to feed the ingredients & door to discharge the mix. The rubber ingredients like chemicals are weighted as mentioned in specification file & fed into the hoper. Then the mixing process takes place. Required mixing time is fixed to get better quality mixing. 2. EXTRUDER 10

JK TYRE INDUSTRIES LTD The main function of an Extruder is to produce tread & side wall, bead, apex. Extrusion is a process of forcing the mixed compound by means of screw, which rotates inside the barrel. There are two types of extruder a. Screw extruder b. Ram extruder

Screw extruder In screw extruder the screw is rotated by means of a motor through reduction gears. The extruder consists of hoper, dye-hard, barrel & dyes.There are two types of screw extruder

Cold feed extruder Hot feed extruder 3. ZELL PLANT The dipping process takes place in a Zell plant. Here rayon, nylon, polyesters are dipped in a solution containing normally a latex based resorcinol formaldehyde to improve adhesive properties. Then the fabric is dried at a temperature of about 280 to 300 Celsius & it stretches to about 0-15%. 4. CALENDARING Calendar is machine, consists of number of rolls held in a frame work used to produce the rubber sheets of required strength & lengths. To get a better quality calendared fabric with uniform gauges, viscosity plays an important role & required temperature is about 110 to 137 degree Celsius. 5. BIAS CUTTER It is a machine used to make the plys or the rubber coated fabrics at a required width & angle. Which are used in the production of tyres. Bias angle is the angle of cords in tyres w r t the central line. Based on the ideal curved angle which is required type, size & pattern. Bias angle is calculated for a particular drum. If the angle is not as per the specification, it will affect the performance of the tyre. In general the angle 45 degree & the width of the sheet is 100 to 137 mm. 6. POCKET MAKING

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JK TYRE INDUSTRIES LTD It is process of making the pocket from the angle cutter fabrics. In pocket making section, three types of pockets are constructed. They are first, second, third pocket. The plys used for the first & second pocket are known as inner ply & those used for third pocket are known as outer ply, pockets are made for easy building of heavy vehicle tyres. 7. BLADDER Butyl rubber compound is used for making the bladder. As first butyl rubber is mixed with specified chemicals properly & then it enters the extruder section by the use of the extruder, a specific length & width of slug is extruded. Then the edges of the slug are cut into specified angle for joining purpose. 8. BEAD MAKING Bronze plated steel wire is coated with layer of rubber compounds to form a bead. 9. BEAD FLIPPING A Filtering compound called apex is provided over the bead. A strip fabric is used to bind the apex with the bead and the bed with the tyre. It is called flipper bead, which is another component of tyre. 10. GREEN TYRE BUILDING All the above components (Pocket, Bead, Flipper, Tread & Chaffer) are assembled, during the tyre building to form Green Tyre. 11. AWLING Green tyres are then sent for awling where air traps are removed by randomly piercing the green tyres using awling gun. 12. TYRE CURING It is a process of cross linking the rubber compounds through heat & pressure. For the process of curing tyres presses are used. These presses are pre warmed before loading of green tyre is done in top ring raise condition with vacuum. Shaping is done by centering the green tyre correctly. Bladders are used for tyre curing. 13. POST CURE INFLATION

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JK TYRE INDUSTRIES LTD Cured tyre are loaded onto post cure inflation units to cool pressure, this is done to avoid shrinking of the nylon fabric. 14. TYRE MOULDING Before moulding operations, the green tyre has to be made ready for painting with inner lubricants inside the tyre for easy release from the bladder & the side walls are to be coated with blemish paints. Blemish paints contains carbon black, naphtha, styrene butadiene rubber components & this enables easy flow of compounds while curing in the mould pattern. The blemish paint helps in minimizing the surface flow marks. As a whole to obtain better results, green tyre should not touch the floor & there should no any contamination on the tyre surfaces. Tyre moulding is a complex type of compression moulding normally cured in presses. The raw tyre has to be placed over a bladder. Then the bladder & tyre expands together due to steam pressure & simultaneously the tyre gets compressed between two moulds in closed position. In this, the operation cycle time, pressure, temperature has to be maintained properly to get optimum vulcanization during moulding process of the tyre. 15. TYRE FINISHING & INSPECTION After curing, the tyres obtained are further finished by trimming of the projection on the tyres surfaces & are checked for defects. Thus the process of removing excess materials on the tyre after curing is called finishing. The finishing process is done either by buffing or trimming method. Buffing is done using emery paper wrapped on a cylindrical rubber press. Thus all tyres are inspected in systematized process. If any defects are found it has to be separated & remaining can be stored in warehouse. 16. TYRE TESTING There are two types of tests
o o

Non destructive tests Destructive tests

Non destructive tests

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JK TYRE INDUSTRIES LTD This the test carried out with any destructing or damaging the product to check the sidewall surface defects, blows blisters, flow cracks under cure, flaws & so on.

HUMAN RESOURCE MANAGEMENT

The main functions of HR Dept- of JK Tyre Industries at VTP is
o o o o o o

Recruitment and Selection Training & Development Performance Appraisal Implementing Incentive Schemes Coordinating among different departments Maintenance of Industrial Relationship.

HRD COMMITTEE MEETING HRD committee consists of senior executives, who meet once in six months under the chairmanship of president & Director. Meeting is arranged by HR department. Matter concerning to HRD are discussed in the meeting. The minutes of the meeting are prepared and circulated to all concerned. COMMUNICATION MEETING A minimum of six- communication meetings will be conducted in a year under the chairmanship of president and director. The meeting is organized by HR Department. Selected executives from various departments are invited to attend the meeting which is basically to facilitate direct communication between CEO and all levels of executives in the organization. TRAINING SYSTEM IN JK INDUSTRIES LTD (VIKRANT TYRE PLANT) OBJECTIVE To establish the training procedures of identifying the training needs and impart training to support organizational objectives of enhancing knowledge skill and effective utilization of human resources. JK Industries is a production-oriented company & has a majority of work force that is technically oriented and also comprises management executives. Training becomes a part and parcel of the inputs given by the company to its employees. So it is of great importance to know the training system in Vikrant. Training records helps to measure effectiveness in sending various persons on training and to send those who really need help & improvements to perform a particular task. 14

JK TYRE INDUSTRIES LTD It has been rightly said If you plan for a year, plant corn; If you plan for a decade, plant trees; But if you plan for a century, plant man. This is the Philosophy, which the company follows to guides their employees at JK tyres. DEVELOPMENT The company systematically plans for the developments of every individual through training and job rotation opportunities. Participation in crossfunctional teams provides opportunities for contribution as well as new learning. In this environment even the so-called ordinary are able to do the extraordinary i.e. the company introduced a concept of Business Process Re-Engineering (BPR). DUTIES & RESPONSIBILITY OF H.R. DEPARTMENT

Responsible for man power planning & recruitment. Responsible for all H.R.D. activities Responsible for employee relations & welfare.

PROFESSIONAL CAREERS IN JK TYRE

Sales, marketing & exports. Manufacturing operations. Engineering and production services. R & D and product development. Materials Management and Logistics. Finance, Accounting and Commercial Management. Human Resource Management.

5. MARKETING DEPARTMENT

FUNCTIONS OF MARKETING DEPARTMENT

Marketing is a process by which goods and services are delivered to the customers. Marketing is one of the activities for maximization of profits and wealth. So marketing is an activity, which plays an important role in the organization to achieve its objectives. It satisfies the customer needs, it is available throughout the world. It collects the feed back from the customers and provides the proper service according to their needs, it works for the customers satisfaction, it collects the 15

JK TYRE INDUSTRIES LTD information regarding current market condition for their products, to maximize the awareness of the products it give prominence to the promotional activities. Products of J.K. Tyre have good acceptance both in domestic and international markets. Broadly, the customers are categorized into & segments like:

Original Equipment manufacturers (Domestic & Exports) Overseas Markets Institutional sales & Replacement Markets. The company supplies the tyres for VOLVO, ASHOK Leyland and Tata Motors. It is the largest exporter from India accounting 26% of the total quantity exported.

DUTIES & RESPONSIBILITIES

Sales and marketing overseas Customer Interaction. Sales Planning, Forecast & Targeting. Interaction with Head Office (Ho) & other parties. Regular monitoring with production department. Monitor CHA (customer House Agent) activities. Co-ordinate with export team for smooth work flow. Timely dispatch to ensure scheduled shipping of tyres to customers.

MARKETING IN JK TYRE

About 50% of the product goes to Original Equipment manufacturers (OEM) market. There are about 200 C&F (clearing and forwarding agency) spread all over India. 24% of the production goes to replacement market. 26% of the production goes to export.

FINANCE FOR THEIR BANKING TRANSACTIONS

Purchase for advance licenses DEPB (Duty Entitlement Pass Book) benefits. Production for meeting the customers requirements. CHA for interaction with customer. Export Inspection agency for inspection of he cargo (export). Shipping companies like Maersk, ALP (American president Lines) for A document after the cargo is shipped. 16

JK TYRE INDUSTRIES LTD MARKETING NETWORK

Head office at Mysore connected with various regional offices. District offices, Brach offices and carrying and forwarding agents through out the country. Common marketing organization (CMO) manages the marketing of NYLON Bias tyres of JK industries. The head of CMO is at New Delhi. The marketing of all steel truck radial tyres is managed by Truck radial group (TRG) which is residing in Bangalore.

EXPORTS JK industries are exported to over 55 countries. Major countries include United States of America, Australia, United Kingdom New Zealand, Hong Kong Netherlands and most of Middle East, Africa and Asian countries. 6. FINANCE DEPARTMENT Commercial Services
o o o o o o

Accounts Costing Banking & Treasury Purchase capital Equipment Contracts Customer co- coordinator & Licenses

Procurement of capital Equipments/ Spares is done coordinating with Head Office commercial for placement of orders, vendor rating for capital/imported spares related parties. Customs co-coordinator and license, Application and Reconciliation of customer and carry and forward services related activities and co-ordination for imports. DUTIES & RESPONSIBILITY OF FINANCE DEPARTMENT

Preparation of MIS(Management Information System) & BRR (Business Review Report) Finalization of monthly, quarterly, half-yearly and annual reports of the company. Co-ordination with statutory auditors & tax auditors Finalization of cost accounts.

Cost reduction and cost of quality report.

Review of books of accounts Preparation of trial balance Overhead position of BRR. 17

JK TYRE INDUSTRIES LTD

Head Office unit reconciliation, prepaid & OSL review support for preparation of overhead budget, assisting for finalization of accounts and statutory audit. Factory budget and monitoring standard costing, up gradation of special changes for standard costing, valuation of monthly work in progress and closing stock, OMC (outside Mixing center) stock reconciliation, Monitoring daily bank balances and inter bank bend transferring, bank payment & reconciliation, co-ordination with financial institutions and banks, creation of securities, Public deposit Scheme and its related references, correspondence and reports, maintenance of fixed asset records (addition deletion & depreciation), bank books & cash book. Bill passing of raw materials, stores and spares and contracts of all kinds, review of parts ledgers. Issue of PFC forms and Tax Deducted at Source (TDS) certificates, OMC and freight payments, entry tax details. Miscellaneous MIS for raw materials, Sundry creditors and freight. Bill passing for imported items. Accounting of exports sales. Exports bill discounting- Export debtors monitoring, Monthly FOREX report of import and export, CHA bills payments for exports and imports. Payments of salary and wage. Payments under workmen compensation Act. Employees reimbursement Viz, traveling, conveyance, medical, LTA, etc/ Finalization of provident fund, benevolent fund (both employees and executives) & superannuating trust accounts, employees TDS. All insurance related activities including Media-claim.

PROFIT & LOSS ACCOUNT

For the year ended 30th September, 2008-9 Rs. In crores PARTICULARS INCOME Sales 20082009 3195.71 18 2952.69 2007-2008

JK TYRE INDUSTRIES LTD Less: Excise Duty 379.55 Other Income Increase in Finished goods EXPENDITURE Materials & Manufacturing Employees 10.50 93.13 2919.79 2202.54 176.72 92.00 183.30 2654.56 265.23 89.04 176.19 101.33 25.89 100.75 7.54 (7.54) 31.15 2.87 66.73 5.25 27.88 99.86 5.02 60.00 8.32 1.41 25.11 99.86 19 17.61 92.16 2718.98 2150.32 155.70 88.70 155.38 2550.10 168.88 76.15 92.73 97.50 26.57 21.80 0.47 (0.47) 1.44 3.31 17.05 3.35 41.53 61.93 5.27 20.00 7.70 1.08 27.88 61.93 2816.16 343.48 2609.21

Freight & transportation Other Expenses OPERATING PROFIT(before interest & depreciation) Interest Profit Before Depreciation Depreciation Transfer From Capital Reserve Profit Before Tax Provision For Current Tax Mat Credit Entitlement Deferred Tax Provision For Fringe Benefit Tax Profit After Tax Debt Redemption Reserve No Longer Required Surplus From Previous Year Appropriations Debt Redemption Reserve General Reserve Proposed Dividend Corporate Dividend Tax Surplus Carried To Balance Sheet

JK TYRE INDUSTRIES LTD Basic /Diluted Earnings Per Share(Rs) -Cash -After Tax

56.28 21.67

31.50 6.01

BALANCE SHEET
As at 30th September, 2007 Rs. In crores PARTICULARS Sources of Funds Shareholders Funds Capital Reserves & Surplus Loans Secured Loans Unsecured Loans Deferred Tax Application of Funds Fixed Assets Gross Block Less: Depreciation Net Block Capital Work in Progress Investments Deferred Tax Current Assets, Loans, & Provisions Less: Current Liabilities & Provisions Net Current Assets 20 30.09.2009 30.09.2008

30.79 503.13 533.92 686.82 228.13 914.95 105.32 1554.19

31 560 591.00 724 219 943.50 1535.5

2156.07 957.27 1198.80 20.34 1219.14 62.60 1100.18 835.95 264.23

2084.20 860.0 1224.19 22.51 1246.70 61.46 1.61 1013.52 796.86 216.66

JK TYRE INDUSTRIES LTD Miscellaneous Expenditure 8.22 1554.19 9.16 1535.59

QUALITY POLICY
In order to demonstrate its commitment towards quality, JK tyre has made never ending efforts to make all its products of world class quality. We the people of JK tyre will have an organization committed to quality in everything we do we will continuously anticipate and understand our customers requirements convert these into performance standards for our products and services and meet these standards every time. Full customer satisfaction-both internal and external is our motto. QUALITY MANAGEMENT ISO 9001: JK Tyre worlds first tyre company to receive ISO 9001 certification for its entire operations in 1995 in one go our quality management system is completely integrated into al aspects of our operations. QS 9000: JK Tyre the worlds first Tyre Company to receive quality management system certification QS 9000. In 1998 for multi location operations, we are using QS 9000 system as a tool for continuous incremental improvement. Environment Management System [ISO 14001]: JK Tyre recognizes the impact that our business has on the environment and takes over responsibilities for maintaining harmony with nature. We are the first tyre company in India to receive ISO 14001 certification for multi location operations 1999.

SWOT ANALYSIS
SWOT ANALYSIS OF TYRE INDUSTRIES
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JK TYRE INDUSTRIES LTD

STRENGTH

Over six decades of experience in tyre manufacturing Self sufficient in tyre production Successful & fast absorption of international technology to suit Indian condition & needs. Well knit distribution network.

WEAKNESS

In comparison with the global standards, smaller size of plant & hence less economic units. Lower productivity of labour in comparison to world standards. Out dated labour laws Proliferation of units High cost of raw materials.

OPPORTUNITIES

Robust economic growth, particularly vehicle production growth resulting in healthy demand growth for tyre in the future. Export culture inculcated enabling participation in world tyre market. Excellent brand equity of Indian cross ply/bias truck Tyres in the world market can open market opportunities for radial tyre. Emergence of Indian as a hub for production of small car is expected to give a thrust to auto component & tyre segment.

THREATS

Faster pace of opening up of the economy will increase import of tyre. Reduction in important duties will lead to high volume of type imports. Multinationals with financial muscle setting up a manufacturing facility in the country. Concenssional import tariffs for countries like china & South Korea under regional trade agreements will lead to additional imports.

CONCLUSION
Vikrant Tyre Plant (VTP) belongs to JK Tyre & Industries ltd situated in the area of 53 acres in Mysore. It is a major tyre manufacturing company & one of the most successful industrial ventures in the state of Karnataka. The company JK Tyre is places in
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JK TYRE INDUSTRIES LTD

2nd position in India & 16th position in the world because of its quality products, wide distribution networks, fulfilling the needs of the customers & so on. The strength of the company is well equipped with latest technology, successful implementation in Business Process Re-engineering [BPR] & in the process of getting certified from Total Productive Maintenance [TPM] certification. The company should more focus on training & development programs to increase its productivity which will be mutual beneficial to employer & employees.

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