MAYA ADVANCED STUDY CENTRE

FOR MANAGEMENT & I.T

VALAPAD, THRISSUR

KERALA

01743

“A STUDY ON FINANCIAL PERFORMANCE OF KSE LTD”

BY

VAISHAKH.V.R

A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF

THE REQUIRMENTS FOR DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Of

Sikkim Manipal University

INDIA

Sikkim Manipal University Of Health , Medical and

Technology Sciences

Distance Education Wing

Syndicate House

Manipal- 576 104

 STUDENT DECLARATION

I hereby declare that the project report entitled

“A STUDY ON FINANCIAL PERFORMANCE OF KSE LTD.”

Submitted in partial fulfilment of the requirements for the degree of

MASTER OF BUSINESS ADMINISTRATION

To

Sikkim Manipal University

India.

Is my original work and not submitted for the award of any other
degree, diploma, fellowship or any other similar title or prizes

Place ; Valapad Name; Vaishakh.V.R

Date; Reg. No.; 520927913

 Examiners declaration

The project report of

Vaishakh.V.R

“ A STUDY ON FINANCIAL PERFORMANCE OF KSE LTD.”

Is approved and is acceptable in quality and form

Intenal Examiner External Examiner

 ACKNOWLEDGEMENT

First of all I am dedicating this humble and sincer work or inline to God
almighty for shower strength and blessing he has bestowed on me for
doing this work.

With great happiness I submitted this project entitled

“ A STUDY ON FINANCIAL PERFORMANCE OF KSE LTD.” With
due respect for invaluable suggestions made by my esteem well wishers.

I take this opportunity to express my sincere thanks and sense of

gratitude to my beloved principal Mr. C.A. Avas , Mr. C. Manoj, faculty for
finance Maya Advanced Study Center for Management & IT Project guide,
for their peerless guidance , suggestion and encouragement to me so that I
could accomplish this work successfully.

I acknowledge my sincere thanks to the personnel manager M.D.Jony,

finance Manager A.I.Jhon and all other employees of the KSE Ltd.

The advices , suggestions and guidance provided with by the staff

members are highly acknowledged

I am thankful to all other teaching and non-teaching staff of Maya Advance

Study Centre for Management & I.T , Valapad for valuable services
rendered by them.

Vaishakh.V.R

Reg.No. 520927913

ABSTRACT
KSE LTD is a cattle feed company which emerged as a leader in solvent
extraction and ready mixed cattle feed in the country. It is the very first
solvent extraction plant in India. Today KSE comments the resources ,
expertise and infrastructure to manufacture a range of feed in high
volumes , coconut oil cake and refined edible oil.

Statement of the problem

This project is a result of the study co

ISSUE IN THE ANIMAL FEED INDUSTRY

Standardization and regulations of animal feed manufactures.

As already mentioned, BIS has produced guidelines feed standards and the
industry also has its own guidelines. Currently there is no compulsion to use
BIS standards, but the central government has been advising states to introduce
their own regulatory standards. The industry, however, is resisting this move.
One of the major reason for oppositions is that the government wants to
legislate regulation under the essential commodities act 1955 which is
consideration draconian and totally inappropriate in the context.

There is no shortage of compound animal feeds anywhere in the country.

In fact, the organized sector of the compound feed industry is facing serious
problems resulting from a huge idle capacity, to the extent of 50 % or more.
New capacities are being added by global players in the feed business and by
national as well as multinational integrators. The nature of animal feed industry
has completely changed.

Further more, the industry has several reservation about implementing BIS
standards. There is a lack of flexibility in these standards and they are lagging
far behind the industry’s products. For cattle , they have not been revised for 30
years, with the BIS standards for poultry are obsolete.

Another feed standards issue that worries both the government and
industry is that any changes to existing standards will be slow and difficult to
arrive at because of participate conflicts and various lobbying groups.
However , the industry’s principal concern about compulsory standards is that
they will disturb efforts to innovate and upgrade feed production in order to
improve the productivity of the animals. This is because all innovations would
have to be passed by BIS and such a process in likely to take several years to
complete.
CLASSIFICATIONS OF ANIMAL FEED SUPPLEMENTS/ ADDITIVES
FOR IMPORT

The classification of feed activities is a major hindrance to the Indian feed

industry. World wide, animal feed supplements and additives (HSN ) to which
India is signatory. In the HSN, all feed ingredients are listed under the free
category for import , but the Indian government put them into restricted
category in October 1995.

The industry’s represented by CLFMA , has made several representations

to the government, but these have been round various government departments,
appellate tribunals, the high court and the supreme court without providing any
useful results for the industry.

COMPANY PROFILE
A BRIEF HISTORY OF KSE LIMITED

KSE ltd is a public limited company is a incorporated with substantial capital

participation by the Kerala State Industrial Development Corporation ltd.
Trivandram and though loans from industrial finance corporation of India, New
Delhi. The company is engaged in the solvent extraction of ground nut cake and
rice bran also. The oil thus obtained is moved for industrial purpose into the
market. In addition is full-fledged livestock feed division engaged in the
production of ready mixed cattle feed.

The company was registered in the year 1963. in 1973 the solvent extraction
plant was started with processing capacity of 60 metric tones of cake per day. In
1976 the company stated production of ready mixed feed with the production
capacity of 50 metric tones per day and in 1983 the company increased the
production of cattle feed to 120 mt per day which has recently been increased to
180 mt per day by the construction of a dully automated computerized plant. In
1988 company started a solvent extraction and cattle feed plant at
Swaminathpuram near Palani, with production capacity of 150mts of cattle feed
per day and processing capacity of 100-120mts of expeller extracted deoiled
cake.

In 1972, the company lased new cattle feed plant at pothannur near coimpthur
with a production capacity of 80 mts per day and in 1995 company has leased a
plan in mysore with the capacity of 50 mts per day. In 1996 the company started
a new plant I Vedagiri at Kottayam in Kerala with the capacity of 240 mts per
day. Kerala solvent extraction ltd come out with a premium public issue on
March 1993 which was over subscribed, through the stock markets are showing
a low trend, now Kerala Solvent’s share is still quoted at Rs.140 per share
whose face value is Rs.10. this reflects the confidence of investing in the
company.
It was in 1963 that Kerala Solvent Extraction limited now known as KSE ltd
entered the solvent extraction industry setting up the very first solvent
extraction plant in Kerala. The traditional coconut oil industry in state was
facing a decline then. Though the largest producer of copra in the country, as
much as 80% of it, Kerala the infrastructure to exploit the potential of its
abundant produce. While the oil industry in other parts of the country were
thriving.

The Dr. Lokhanathan committee, set up to feasibility of starting new industries

in Kerala, recommended the establishment of 3 solvent extraction plants. And
one of them, in Thrissur district. The oil mill owners in and around Irinjalakuda,
who were thinking in similar lines saw the opportunity and look the initiative to
establish a solvent extraction unit. The solvent extraction plant went on the
stream in 1972 and in 1976 a new plant was setup to manufacture ready mixed
cattle feed, which was a pioneering step. Since then there, was no looking back.
The last 3 decades have seen KSE emerging as a leader in solvent extraction
and ready mixed cattle feed in the county and though these years of
consolidation and diversification KSE has crate a niche for itself.

Today KSE commands the resources, expertise and infrastructure to

manufacture a range of live stock feed in high volumes, coconut oil from
coconut cake and refined edible oil. Since the early, KSE had endeavoured to
supply its products to customers through extensive network of dealers and
retailers which from a dedicated force behind the success of KSE. It is matter of
pride that KSE is household name today. The KSE is a public limited company
having around 6000 shareholders. The board of directors consisting 10 directors
in the executive committee responsible for the management the article of
association of the company empowers the board of directors of directors to
appoint one as the Chief Managing Director. The company has one Executive
Director and one Whole Time Director.
The Chief Managing Director, Executive Director and Whole time Director are
the smooth running of day to day affairs of the company. Strategic decision of
the company are taken by an executive body consisting of the Managing
Director, Executive Director, Whole time Director, General Manager, Finance
Manager, Nutrionist , Marketing Manager, Plant Manager and Purchase
Manager. These executives are professionals with vast experience in their areas
of specialization.

ESTABLISHMENT

Kerala Solvent Extractions Limited now known as KSE limited was

established in 1963, by a handful of coconut millers in and around Irinjalakuda
with a vision to over come the crisis of the coconut oil industry. Initially started
as a solvent extraction plant, the company now produces 750-800 MTS of
coconut cake a day with 4 cattle feed production units and 2 solvent extraction
plants. The company has diversified into the area of dairying by establishing 2
dairy plants for the production of pasteurized milk and milk products. It has
obtained ISO recognition for its commitment to quality and professionalism.

OBJECTIVES

1. To produce, manufacture ,extract, purchase refine, prepare import ,

export, sell and generally to deal in oil from seeds and other oil
bearing materials to carry on the business of refining the
hydrogenation of oil and the manufacturing of by products there from
and of trades connected there with.

2. To acquire erect, construct, establish operate, and maintain oil mills

,extraction plants, and workshops.
3. To purchase for the purpose of business of the company. Oil expellers
denigrators , filter press , oil neutralizing , washing , dyeing
 bleaching , filtration and hydrogen plants , punch machines and other
machines .
4. To purchase , manufacture , treat purchase sell or otherwise deal in oil
cakes , washing soaps ,toilet soaps , hair oils and timed products.

VISION

We shall endeavour to maintain leadership through quality products,

explore new avenues in product development and marketing, create a stronger
bond between the management, Workforce , dealers and customers ,contribute
to social development and rural enlistment, and constantly strive for excellence
in all spheres of our activities.

SHARE CAPITAL

To authorized share capital of the company is 99,40,000, which is divided

into 99,40,000 equity shares of Rs 10 each and redeemable cumulative
preference share of Rs 100 each. The preference shareholders have a right of
preferential divided at the rate of 13.5 % per year. The company at par value
allows redemption of preference shares after 12 years but before 15 years from
the date of allotment. In 1994, company made a public issue of shares and
listed the shares in stock exchange Bombay, Madras, and Cochin Now the
company has 6000 share holders.

SOCIAL SERVICE AND RESPONSIBILITY

The company gave so many contribution to the country at the time of

uncertainties. It contributed 5 lakh each for Kargil and Tsunami Fund .
 As a part of social responsibility the company introduced ‘ KS PARK ‘
for the enjoyment and fun children. And also they are spending Rs.50000 in
each month for it. And also they were conducting some competitions for
children occasionally.

AWARDS AND RECOGINATIONS

The company has won the sea award constituted by Solvent Extractors
Association of India for highest Processor of coconut oil cake for the year
2008-2009. This award is being received by the company for the past 19 years
consecutively since the inception of the award. Your company has also won the
Best Productivity Performance Awards instituted by the National Productivity
Council , New Delhi in category of animal feed Processing industry
continuously for ten years beginning with 1996-1997.

THE COMPANY –TODAY

The pioneering plant of KSE at Irinjalakuda in many ways. It was first solvent
extraction plant in Kerala. It was first manor factory in the locality, spread over
15 acres. It was here set up its first cattle feed plant. The embodied the spirit of
enterprise of group of committed people, who wanted to user in an era of
modernity into a traditional society and change the industrial landscape of the
state. Naturally, today the Irinjalakuda plant enjoys a flagship status and
commands an edge on infrastructural strength. Taking great in technological
development, the process of computerization in plant and office was initiated
way back in 1987. Research and development plays an important role in the
activities of KSE, The central R & D unit is located here. The plant houses a
modern laboratory. The quality control cell here leads and guides other units
and formulates stringent standards. The chief Nutritionist and Assistant manager
quality controls are also based here. A proud symbol of growth, the Irinjalakuda
unit is an inspiring force for the entire KSE family.

KSE Limited an ISO 9001-2000 certified company is having an

annual sales turnover Rs. 371 crores ; Irinjalakuda branch is the head office of
the company. Only the cattle feed production is running in irinjalakuda plant
with a production capacity of 210 tones per day. The production is running the
three shifts and each shifts they were producing 70 tones. The company is
giving 400 direct employments for people in Irnijalakadhu.

GROWTH CHRONICLE

1972
Solvent plant commences operation.

1976

Mixed cattle feed production begins.

1987

Cattle feed production reaches 180 tons

Introduction of computers in the factory and office.

1988

A new mixed cattle feed plant starts operation at swaminathpuram , tamil nadu
with a daily product ion capacity of 180 tones.

1989

A solvent unit with a capacity of 120 tones per day commences operation at the
Tamil Nadu plant.

1990

Introduction of KS supreme pellets, by pass protein cattle feed in the market.

1991

Open its palaghat branch.

1992

Cattle feed manufacturing beings in third party units.

1933

Enter exports market.

1994
Introduction of feed supplements KS Forte public issue and listing of shares.

1995

Vegetable oil refining plant commissioned KS supreme – Sunflower Refined oil

Launched Calicut Branch opens.

1996

240 TPD cattle feed commences at Vedagiri, Kottayam Dist. Kerala.

1997

Company renamed as KSE Ltd.