A Report On The Internship at Kerala Automobiles Limited

A REPORT ON THE INTERNSHIP AT KERALA AUTOMOBILES LIMITED
CHAPTER 1
INTRODUCTION
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1.1 OVERVIEW OF THE INTERNSHIP
This report is prepared on the basis of One month experience at KERALA AUTOMOBILES
LIMITED, Thiruvananthapuram, Kerala. as a Human Resource intern, I was able to
familiarize with the process of HR functions like Recruitment and selection, Performance
management, Training and development, Human Resource Information system, Workplace
safety and provides service support to HR department.
Table 1.1 Overview of the Internship

Type of Internship An Internship on Human Resource
Department in KAL
Organization KERALA AUTOMOBILES LIMITED
Duration One month
Internship Period April 13, 2022 – May 18, 2022
Mode of Internship Offline
1.2 OBJECTIVES OF THE INTERNSHIP
The primary objective of this internship is to gain industry knowledge on HR practices and
the maximum utilization of theoretical insights received from my MBA program at Allama
Iqbal Institute of Management. The other objectives include:
• To understand the functions of Human Resource Department in a detailed way.
• To understand the organizational structure and hierarchy.
• To better myself in problem solving and improve decision making skills.
• To develop employability skills
• To know company objectives about future modification in Kerala
Automobiles Limited.
• To get real life learning experiences.
• To do the SWOT analysis of the company
• To suggest recommendations for improving the overall performance of
the organization
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1.3 SCOPE OF THE STUDY
• To study working environment

• To study the employer-worker relationship
• The internship program helps to familiarize with organization environment and to
understand the whole department and carried out within the organization.
• Sometimes internship evolves into employment with the organization.
1.4 METHODOLOGY
The study pays more attention on the process that takes place in the various departments
of KAL, organizational structure and operations management of various departments of
KAL.
Data sources
Data source is the source form where the data are collected and arranged. There are two
kinds of sources: Primary source and Secondary source
Primary source: Primary data are collected for the first time. It is obtained through the
personal interview with the manager as well as some employees. Observation was
systematically planned and recorded. The personal interview was direct and was a
mixture of direct, structured and unstructured questions. The type observation used was
structured and controlled one. The opinion of the different people may be difference for
a question. So, a keen observation and extraction of facts has carried out with the help
of the formal authorities.
Secondary Data: These are data collected from the various journals, brochures,
websites, newspaper etc. The company details and data have been personally gathered
from company profile, annual report document and other published booklets.
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1.5 LIMITATIONS OF INTERNSHIP
• The study was carried out to a period of one month. So, the time was a major
limitation.
• Busy Schedule of company executive.
• Working time varies in some days.
• Some personal interviews may be affected by personal bias.
• Some company documents are confidential in nature. So, it was not possible to
include all those items.
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CHAPTER 2
INDUSTRY PROFILE
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2.1 INDUSTRIAL ANALYSIS
A three-wheeler is a three wheeled vehicle propelled by petrol/CNG, diesel, or electric

motor. Three-wheelers are generally used as a commercial vehicle to transport passenger
and goods. The mobility of three-wheelers depends on the manoeuvrability, affordability,
and door-to-door transport. As many developing countries specially in Asia-Pacific and
LAMEA require faster and significantly cheaper option for public and goods transport,
three-wheeler suites the requirement best.
The three-wheeler market is driven by factors such as increase in demand for commercial
vehicle with lower operating cost, last mile connectivity, and growing preference for the
electric vehicle as a commercial vehicle. However, increase in fuel prices, higher upfront
cost of electric three-wheeler battery, and lack of charging infrastructure are some the
potential factors that can hamper the market growth.
Asia-Pacific dominates the market at present, followed by Europe, LAMEA, and North
America. In the Asia-Pacific region, India dominated the global three-wheeler market in
2020, and is expected to maintain its dominance during the forecast period.
Whereas China is expected to grow at a significant rate in Asia-Pacific, owing to the
growing preference of electric three-wheelers in the region.
India has emerged as the largest three-wheeler industry with a large domestic market and
export base on the back of strong demand from local as well as international markets. “With
industry volumes of 9,20,000 units in FY 2015, India is positioned as the largest
manufacturer as well as market for three wheelers, globally,” an ICRA research report.
At present, rapid urbanization, burgeoning public transportation sector, and the improving
logistics are among the key factors positively influencing the market across the globe. In
addition, the expansion of the e-commerce sector is catalysing the demand for cost-effective
and efficient delivery options that can navigate through congested urban areas. Three-
wheelers, such as electric cargo trikes and auto rickshaws, are well-suited for this purpose,
as they can carry small to medium-sized loads and navigate narrow streets and alleys with
ease. Moreover, the soaring fuel prices of conventional fuels, such as petrol and diesel, are
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increasing the demand for compressed natural gas (CNG) and liquified petroleum gas (LPG)
-driven three-wheelers. In line with this, the growing environmental concerns about the
increasing greenhouse gas (GHG) emissions from gasoline- or diesel-powered three-
wheelers are offering lucrative growth opportunities to key market players for introducing
more eco-friendly alternatives. Additionally, governments of various countries are
undertaking favourable initiatives and introducing awareness programs to promote the
adoption of electric vehicles (EVs), which is further strengthening the market growth.
Besides this, the rising modernization of several commercial infrastructures, such as
shopping malls, educational institutes, and metro rail, is increasing the sales of electric three-
wheelers for providing local conveyance to customers. Furthermore, the increasing
penetration of high-speed internet and rising usage of ride-hailing mobile applications that
allow consumers to book rides on three-wheelers and help fleet owners in optimizing their
operations, reducing costs, and improving customer satisfaction are stimulating the growth
of the market.
While India remains the world’s top producer, consumer and exporter of three-wheelers;
challenges faced by it were many! The advent of safer, faster and price-effective 4-wheeled
counterparts (say Tata Ace) did raise some serious questions on the sustainability of the
industry in the recent years. Also, government’s concern over safety and fuel usage has been
worrying the manufacturers. However, 3 wheelers remained to be an affordable means of
short-to-medium public transportation and last mile connectivity for goods transportation.
The significance was well identified by Taxi Aggregators (Ola, etc) and have added autos
as well under their offering.
The demand for three-wheeler in our country is growing year-by-year. India three-wheeler
market is expected to exhibit a CAGR of more than 15% by the year 2023.The leading three-
wheeler companies started launching new models of vehicles which increased the sale of
three-wheelers. Various advantages like high fuel efficiency also constituted in increasing
their demand in the Indian market.
Manufacturers of electric vehicles and all other brands saw an increase of 69.11%.
In March 2023, they sold 29,777 three-wheelers in India, compared to 17,608 units
in March 2022. The industry is steadily expanding, providing new chances for market
players
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Electric vehicles (EVs) have gained significant traction in recent years as a cleaner and more
efficient alternative to traditional gasoline-powered cars. With advancements in battery
technology, a growing network of charging infrastructure, and increasing consumer demand,
EVs have become a viable option for many drivers around the world. Changing the way we
think about driving, these vehicles are powered by electricity stored in a battery, rather than
gasoline, and use electric motors to turn the wheels.
India is the third largest automobile market globally in terms of sales, ahead of Germany and
Japan. There is now a push for manufacturers and policymakers to collaborate to shift demand
towards greener options. The automotive sector is a major contributor to India's economy,
accounting for 7.1 percent of its GDP and providing significant employment. The Economic
Survey 2023 predicts that India's domestic electric vehicle market will see a 49 percent
compound annual growth rate (CAGR) between 2022 and 2030, with 10 million annual sales
by 2030. Additionally, the electric vehicle industry is projected to create around 50 million
direct and indirect jobs by 2030.
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CHAPTER 3
ORGANIZATIONAL ANALYSIS
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3.1 NATURE OF ORGANIZATION AND ITS BUSINESS
Figure 3.1 – KAL
Kerala Automobiles Limited (KAL) was incorporated in 1978 as a Government of Kerala

undertaking. It is set up 16 kilometres south of Thiruvananthapuram, in a tiny village called
Aralumoodu in Neyyattinkara Taluk. The Company manufactures Electric Three Wheelers
suitable for passenger and goods traffic in the brand name of KERALA NEEM G which
are considered as Eco-friendly vehicles. Company has around 10 acres of the land. KAL is
the first company launches Diesel three wheelers in Indian market. The strong, highly
motivated work force in the Technical and Management cadres are working hand in hand
for the progress of the Company. The ancillary units developed by the Company around the
factory complex provide livelihood for hundreds of families.
KAL started its operation with 164 employees and 52 vehicles, company started with in
initial capital investment of 7.22 crores which was for the further enhancement to 26.13
crores of which 3.33 crores being the share of the state government and the rest financed by
institution like IDBI, IFICI and SBI. In these initial years of operation, company was
registering gross losses and hence registered as a sick unit. Later company began to earning
profits. KAL Started with the production of petrol engine three wheelers from 1988
onwards. KAL was first company to introduce Diesel Engine in 3 wheelers. For the past 20
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years company has produced and marketed around 82000 units. It is an ISO 9001-2000
certified company.
The present product range comprises of Pollution Free Electric Autorickshaws (Drive
Away Chassis & Fully Built). Since commencement of production in 1984, the Company
has manufactured and marketed more than 1,00,000 Three Wheelers. KAL has distinguished
itself as a force worth reckoning in the Automobile industry in India. The Company has also
exported a number of Three Wheelers to Bangladesh, Sri Lanka, Nepal, Sudan, Botswana,
Nigeria, South Africa, Madagascar and Guatemala (Central America). the Company could
turn the corner for the first time in 1993-94 and continued to keep the same trend at a higher
level. The acceptability of KAL Three Wheelers in the Third World countries speaks for its
utility and quality. KAL is also manufacturing sophisticated components to be used in
various space programmes of ISRO (VSSC, LPSC, IISU).
The Company is getting all kind of support from the Government of Kerala, without which
it would not have been possible to achieve the present level of promising state of
affairs. KAL was awarded with ISO Certification in 1998 itself and keep hold of the same
ever since by updating the quality management system appropriately to conform with the
amendments in the ISO Standards. Currently KAL is certified as ISO 9001: 2015
compliant in recognition to its strong customer focus, the motivation and implication of
top management, the process approach and continual improvement. It is the unflinching
faith of our customers, which has powered KAL into the path of progress and looking
forward for continued patronage at a higher rank.
The Board of Directors:
• The Chairman
• The Managing Director
• The Representative from Trade Union
• The Representative from IDBI
• The Representative from Finance
• The Representative from SBI
• The Consulting Engineer.
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3.2 ORGANISATIONAL HIERARCHY
BOD
CHAIRMAN
MANAGING DIRECTOR
DGM
MANAGER
ASSISTANT MANAGER
SENIOR MANAGER / A.O
SALES EXECUTIVE
JR EXECUTIVE
COMPUTER PROGRAMER
CLERICAL STAFFS
ATTENDER
HELPERS
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3.3 FUNCTIONAL DEPARTMENTS
• Human Resource & Administrative

• Marketing
• Finance
• Purchase
• Research & Development
• Service and Spares
• Maintenance
• Stores
• Production
• Planning
• Machine Shop
• Quality Assurance
• Assembly
• Fabrication
Human Resource & Administrative Department: -
HR DEPARTMENT
MANAGER
ASSISTANT MANAGER
ASST. PERSONNEL OFFICER JR. PERSONNEL OFFICER
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The Human Resource and Administrative department provide support in the various human
resource functions of the Corporation through structure and the ability to meet business
needs by managing our most valuable resources: our employees. Its disciplines include
recruitment, safety, employee relations, compensation, and benefits, training, and
development, as well as compliance. The Human Resource officer provides advice and
assistance to supervisors and staffs, prepares salaries, and wages and works closely with
General Manager. KAL has formed a separate Human Resource Development Department
headed by the Human Resource Development Manager. The overall administration of the
company is carried out by a separate administration in KAL.
Objectives
• Reduce absenteeism from 10% to 5% in the course of one year.
• Improve employee satisfaction by 10% using a survey of current situation at the
end of one year.
• To enable individual employee to improve their efficiency by 5% in the course of
1 year.
Functions: -
• Manpower Planning
• Recruitment and Selection
• Performance Appraisal
• Promotion Opportunities
• Industrial Relations
• Grievance Procedure
• Disciplinary Procedure
• Leave Holidays allow benefits and allowance
• Safety Committee
• Canteen Committee
• Scrap Committee
• Medical Assistance
• Welfare Fund
• Dispatch of Letters
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Manpower planning
The number of employees in an organization is decided by the number of products

delivering. The government decides the number of employees to be worked for the
company to achieve the targeted production. It is called Employee Sanction Strength.
Current Manpower Planning: the number of contract employees are checked based
upon the production. The work is being outsourced to the outside parties, if there arises
an immediate shortage. After getting the preferred output of production, the machinery
is used for the manufacturing of other products like coir spinning machines etc. Its
current plan is to maintain the level of production with minimum input.
Recruitment and selection
There are three methods of recruitment
1) Direct Recruitment: It is done through advertisement in newspaper.

2) Employment Exchange: This is done through the employment exchanges and is
because of the compulsory Notification Act. The required number of candidates
and their qualifications are informed at the employment exchanges. The eligible
candidates are recruited and selected.
3) Public Service Commission: The post of helpers, typist, office assistants, stenos,
clerical staff, drivers etc are done through PSC. Whenever there arise a need for
employees on such posts, it will be reported to PSC. But there is no such
recruitment in recent times since there is no need for such posts.
4) For higher posts: there will be interview only. In the interview board, there will
be members from board of directors, HR managers and the domain/subject
expert sometimes as per the direction fro the government. Then the merit list is
sometimes as per the direction from the government. Then the merit list is
published. Then fixed list is published for selected candidates.
Induction
An introduction program will be given to all the candidates who join the KAL as a
fresher. They will be provided on the job training. Most of the times, their probation
period will be from six months to one year. After that, if the candidate’s performance
is satisfactory, he will be appointed as permanent.
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Training and Development
After the intake of a permanent employee, he will be given training for 1 year.
Permanent appointment is given after that. The training can be outside or inside the
organization. During the period of training, the basic pay alone is given. After
appointing the employee as permanent, he will be paid salary with all the kind of
benefits. Apprentices and management trainees are appointed based on contract basis
to get trained in their domain areas. They will be given stipend only.
Employee Profile
Workmen are classified into permanent workers, probationary, temporary and casual
workers. Employees can be classified based upon two norms, they are:
1) Based on Standing order.

2) Based upon wages of employees/wage settlement.
In KAL the employees are classified upon wage segment. They are:
• Officer category/managerial.
• Technical category/workmen.
In KAL the employees are classified into two categories based on wage settlement.
They are:
• Officer/managerial
• Technical/Workmen
Working Hours
The working time in KAL is 8 hours per day. There are maximum five shifts in the
company.
1) Executives: 9 am – 5pm.
2) Ministerial staff: 9.30 am – 5 pm.
3) Workmen: 9 am – 5 pm (general shift)
6am – 2 pm (1st shift)
2pm – 10 pm (2nd shift)
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Attendance
The attendance of KAL is calculated through the punching system. The employees
punch their attendance card and the attendance will be registered in the server. The
salary is calculated based on this. For every minute late, the belated time will be
calculated and respective salary will deduct and causes ‘loss of pay’. Such exception is
only for the entry time of first 30 minutes. If the employee is late more than 30 minutes,
he has to take half day leave.
Wages and Salary Administration
There are two scale of pay. They are:
1) For officer segment (every 4-year revision).

2) For workmen segment (every 5-year revision).
Stipend
The training and apprentices are given stipend every month. It’s as follows:
• ITI - Rs 1440
• Diploma - Rs 1850
• Degree - Rs 2600
• Management Trainee - Rs 3000
SALARY RELATED TERMS
Dearness Allowance (DA)
There are two types of DA:
1) Fixed DA/Government DA
This is for the people of the managerial category. Fixed DA varies every quarter.
The current government DA is 123% of the basic scale of pay. This DA is fixed
by the government and is based on the salary point scale.
2) Variable DA
This DA is for workmen category. This is fixed by the government based on

cost-of-Living Index/Consumer Price Index (CLI/CPI). ‘Economic and
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Statistics Department’ prepares Consumer Price Index. This DA percentage

varies according to the inflation every month.
Adhoc Pay
This is given to those employees who are eligible for promotion and not promoted yet
even after bound within which they have to be promoted. When Adhoc pay is added to
the salary, the respective DA of Adhoc pay is also given to the employee. That is Adhoc
pay is added to the basic salary and its DA is calculated. When he got added to the
salary, the respective DA of Adhoc pay is also given to the employee. That is Adhoc
pay is added to the basic salary and its DA is calculated. When he got promoted, the
Adhoc pay is removed and the new scale of pay to the promoted position will be given.
Attendance bonus
If the employee takes only one leave in the month of 26/27 working days, he will be
eligible for Rs 25 attendance bonus. But if there are two leaves or ‘loss of pay,’ he
won’t be eligible for the attendance bonus.
Gratuity
The employee will get 15 days salary as gratuity for one year’s work. The employee
will be eligible to receive gratuity, when he completes minimum 5 years’ service. As
per gratuity act, in KAL while in service if any employee passes away, he will get
gratuity amount up to his recruitment age.
Incentives
Incentives are given to all the employees from the top to bottom of the organization,
when extra production takes place. But since the current production is limited, there is
no incentive for the employees.
Washing allowance: Rs 30 per month is given to workmen as washing allowance.
Stitching allowance: Rs 250 per year is given to workmen those who have uniform and
Rs 350 for women.
Risk allowance: Rs 50 per month is given to work assistants and helpers who undertake
operations like painting, heat treatment, ammonia pointing welding etc.
Special allowance: Rs 25 per month to senior tradesman.
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Shift allowance: First shift – Rs 2.50
Second shift – Rs 3
Shoe allowance: Administrative department provides Rs 300 as shoe allowance in

every 8 months to every employee.
Leave
Casual leave - 20
Medical leave - 10 full day leave/20 half day leave.
Earned leave/ annual leave: The employees have the right to take 1 earned leave for
every 20 working days (20:1) (based on factory act). But the management has the right
to put forward attractive plans in front of the employees to motivate them. Earned leave
can be encashed. The maximum number of earned leaves that can be encashed are 300
days.
Holidays
KAL allows a systematic method for deciding holidays in a year. There can be up to 13
holidays in a year. Out of these 4 days are national holidays – Jan 26, May 1, Aug 15,
and Oct 2. The remaining festival holidays are decided by the management and workers
committee.
Total number of leaves in a year.
Annual - 30
Casual - 20
Medical - 10
Holidays - 13
Week Sundays - 52
TOTAL LEAVES - 125/year.
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Promotion opportunities and appraisal
Promotion policy
50% recruitment is through direct method and the rest id through promotion. The
promotional levels are:
Technical
Engineer, Senior Engineer, Assistant Manager, Manager, Deputy General Manager,

general Manager.
Nontechnical
1) Accountant, Junior Personnel Officer, Junior Law Officer, Superintendant, Sales

Executive.
2) Assistant Accountant Officer, Assistant Administrative Officer, Assistant
Personnel Officer, Assistant Welfare Officer.
3) Account Officer, Personnel Officer, Administrative Officer Etc.
In KAL promotion is based on
• Seniority
• Qualification
• Performance
If a person won’t get promotion till 10 years due to lack of qualification, poor
performance etc he will be given a grade. It is called upgradation.
The difference between upgradation and promotion is that the upgraded person will get
salary hike only. He won’t be given authority according to the salary increment. But in
the case of promotion, the employees have both salary hike and authority.
Performance Appraisal Policy
• It should be in prescribed form.

• The performance appraisal shall be conducted annually in the case of workmen. In
the case of supervisors and above, the appraisal shall be conducted half yearly
during the period from January to June and July to December.
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• The entries in the performance appraisal form shall be clear and precise and shall
be based on the officer’s personal observation of the work and conduct of workmen.
• If there are any adverse of such nature that the workmen need an advice or
admonition only, the concerned Head of Department shall render advice of
admonition. In more serious cases, the Head of Department shall give opportunity
to the concerned to submit explanation. The intimation to the workmen together
with his reply, if any, shall be kept in the personal file.
• The confidential record shall be prepared by the officer under whom an employee
is working and shall be submitted to the Head of the Department who shall
countersign it, adding his own remarks, if any.
Industrial Relations
According to the referendum, the union having 15% membership will only be
recognized. Now in KAL there are 3 unions.
Name of union Reg. No. Affiliation

Kerala Automobiles Limited 126/82 INTUC
Employees Union
Kerala Automobiles 102/84 STU (Swathanthra
Employees Organization Thozhilali Union)
Kerala Automobiles 325/84 CITU
Employees Association
From the discussion with HR Manager
• Company was in loss before some years and is slowly coming to profit.
• Employees are given training in different areas for the expansion program.
• As a part of product diversification, coir spinning machine is made and handed over
as per demand. By providing training, the management is trying to impart a change
in the work culture. The work that KAL follows is a traditional one. It needs to
accept the change according to market and time as the other public sector companies
are also changing.
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• In Department Performance Appraisal (DPC), HRD department has the plan to

implement a written test for the officer category. But due to the opposition from the
side of employees, it becomes unsuccessful.
• Absenteeism; For lateness, the proportional amount of salary will be reduced. A
regular attendance is kept. There is a time keeper to make sure that employees are
on time. He is responsible and checks the duties on time.
• Situation analysis is a must for a HR manager. One has to stay calm and listen to
the problem/issue first. HR has to stand independent in taking the decisions, without
any biases.
• Exit interview: Usually there is no exit interview done in KAL at the time of
retirement.
The main functions of administration department are as follows:
➢ Committees
The committees in KAL are formed by the unions elected each year. Each union
nominates one person to each committee. Equal number of persons from the side of
labour unions will be nominated from the management side. The committees in
KAL are canteen committee, safety committee, magazine committee, estate
committee, scrap committee.
➢ Security
Managing the security people is done by the administration department. Fresh
quotation is invited every year for the security people. ‘Ex-service league’, an
association of ex-service men carries out security job nowadays.
➢ Canteen
Every year new quotation invited in dailies like Malayala Manorama,
Mathrubhumi, Kerala Kaumudi etc to undertake canteen. Canteen committee votes
and selects the best quotation. Management given Rs 300 subsidy for each
employee every month. Coupon is given to employees for food. Water, building,
utensils etc are free for canteen undertakers. There is a ration permit of 3500 kg rice
and 2000 kg sugar for KAL canteen.
➢ Stationery
Administration department buys and stores the stationery items like calculator, files,
glue, paper, pen etc. In every 2-3 months it is bought wholesale from Triveni shop,
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for an amount up to RS 40,000. It is supplied to each respective department as per

the need and it makes sure that the items are not manipulated.
➢ Advertisement
The photos that are advertised as promotion for programs is brought to the
organization and then only the money is paid. To print the KAL diary,
administration department approaches different firms for advertisement to reduce
cost. It has a long-time regular advertisement providers.
➢ Funeral Arrangement
In the case of demise of an employee, Rs 5000 will be given to the family to carry
out funeral function. Rs 3000 will be given to the close relatives of the died person.
➢ Head Load Workers
The wages of head load workers is paid by the administration department.
➢ License Renewal
It is the job of the administration department to renew the license of company every
year. The industrial license application is given in the form-2. The application for
renewal is sent along with the duly filled in’form-2’ and the Chellan of Rs 75,000
and the names and details of Board of Directors. Original factories license will also
be sent along with this and it is renewed and a new license is issued back to the
company.
Marketing Department: -
North India is the main market of KAL. In three-wheeler industry KAL has only 1%
market share. KAL mainly produce three-wheeler chassis and send to the godown I north
India then it is applied to the dealers as per their demand. The dealers make the body for
the vehicle as the customer demands and sells the product. The dealers will get the
significant amount in the body building. It can be up to 1.4 lakh. This is because diffrenet
people have different interest and they use this vehicle for different purposes. In Kerala,
KAL cannot compete because there are a lot of manufacturers who gives super finished
goods to the customers. KAL is sharpening the edge to get into the market. Another reason
that the north Indian customers buy the product is that its performance. It has a good
mileage and high power that it can run in any conditions off road. KAL is producing fully
build vehicles as per demand.
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A Marketing department promotes your business and drives sales of its products or
services. It provides the necessary research to identify your target customers and other
audiences. Depending on the company’s hierarchical organization, a marketing director,
manager or vice president of marketing might be at the helm. In some businesses, a vice
president of sales and marketing oversees both the marketing and sales departments with
a strong manager leading each department.
Functions:
• The marketing department ensures the company’s product are dispatched to

various outlet taking into consideration the demand for various types of vehicles
at various outlets.
• Appointing of dealers.
• Preparation of sales budget.
• Payment to dealers/ C & F agents.
• Responding to enquiries.
• Collecting the feedback information of the product and conduct periodic market
survey.
• Collecting feedback information of the product.
• Termination of Dealers.
• Advertisement and sales promotion.
Finance Department: -
A company's finance department has a fundamental role in making financial decisions for
internal and external affairs. Business activities depend on the competence of the finance
department, which is organized with specific roles and duties. In this article, we discuss
what a finance department is and does, the roles within one and the skills you need to work
in a finance department.
A finance department is the unit of a business responsible for obtaining and handling any
monies on behalf of the organization. The department controls the income and expenditure
in addition to ensuring effective business running with minimum disruptions. Besides the
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traditional roles of handling the payroll, income and expenses, finance department
responsibilities also include economic analysis to improve key business strategies.
The capital of KAL is contributed by Government of Kerala when it started. The initial
investment was 4 crores when the company started. It was in loss till 1992. Then a revival
package was allowed by BIFR. It was approached to banks to get money and to government
for grand. In 1994-95, it started making profit. It continued up to 2004-05. Its accumulated
loss was wiped out and it sent worth became positive. There was a surplus in the balance
sheet. From 2005-06, it again came to loss and continues till now. This is because the
production and sales is not enough to meet the target.
Functions: -
Cashier collects cash receipt. If any payment is taken place, a bank payment voucher is
prepared by the debit and credit system through the computer. When transaction takes place,
a sales invoice is prepared by the marketing department for the dealer. When invoice is
prepared, the computer database is used to create debit and credit and which is sent to
dealers. From sales list, a trial balance is prepared. When payment is taken place, payment
voucher is prepared. Every transaction is prepared by clerk. It is send to the finance manager.
Then the payment is given by the cashier.
➢ Cash receipt/payment
➢ Bank receipt
➢ Finalization
➢ Capital structure
➢ Purchase
➢ Sales
➢ Managing computer
➢ Preparation of VSR
➢ Withdraw/receive/payment of cash
➢ Position and filling of VSR
➢ Settlement of tax, temporary salary, interest advance
➢ Payment of retainer fee
➢ Physical verification of cash
➢ Verification/approval of all cash/bank receipt and payment vouchers.
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Capital Structure
Capital structure is a major aspect of financial planning. The capital or funds come in the
form of long term and short-term departments, preferences, and equity shares. The company
has no shareholders other than loan from Kerala Government. The company’s other
financial support is only from the financial institution SBI, Debt- equity ratio of the company
was 6:7:1 in 2001-02, 44:1 in 2002-03, 38:1 in 2003-04
Purchase Department: -
The purchase department ensures the availability of raw materials at right place at right
quantity. The activities of purchase department are determined by the data provided by the
planning department. The department is following ABC analysis for purchasing of product.
The purchase department also has PDCA cycle of activities.
Functions: -
• Supplier Satisfaction
• Purchase Activities
• Purchase Information
Objectives
➢ Satisfy the supplier by giving regular order.
➢ Reduction in rate of rejection in materials.
➢ Vendor rating up graduation.
The main function of the purchase department is to purchase the raw materials which are
necessary for the production process.
The products purchased are divided into 5 categories – A, B, C, D, E.
Product type A: includes – tyre, engine, tube, sheet etc.
Product type B: includes – upper cone, horn, speedometer, cable for gear control, heel
cylinder assy, brake lever assy, mango lever, spring etc.
26 | P a g e
Product type C: includes – shaft with support, clip cables, shim adjusters, petrol tank
neck, rear break adjuster, space for head lamp, cable for clutch, support bracket, rivet,
wiper fitting, screw etc.
Product type D: includes – div. beeding, overflow pipe, speedometer cable, ignition
switch, decompression cable, main electrical loom, DC horn, battery cable assy, BULB
– B 53, tail lamp assy, reflex reflector, indicator (green), silencer mountings, shop bush
spring.
Purchase cycle
• Calls quotation
• Negotiation
• Checks quality
• Purchase department
The Procedure for a purchase
➢ Enquiry for question

➢ Receive the quotation
➢ Negotiation of the quotation
➢ Revise the quotation
➢ Compare the statement
➢ Proposal for the purchase
➢ Place purchase order
➢ Follow up the material
➢ Collect the material
➢ Quality inspection
➢ Raising GNR or GRJ (Good receipt note/Goods rejection note)
➢ Payment to vendors
Research & Development Department: -
The company’s product engineering department has the computerized design system and
testing equipment to ensure the internal standard. Experienced engineers have transformed
the basic Italian reference to the latest evaluation of the design leading to fuel efficient eco
friendly Kerala Automobiles Limited three-wheeler ensuring stimulating quality system.
27 | P a g e
Major Achievements: -
• Introduction of electric autos ‘Neem G’

• Introduction of Diesel Engine
• Introduction of six seated diesel engine three-wheeler.
• Development of aerodynamics front show
• Design development and introduction of diesel vehicles with hydraulic banking
system.
Service and Spares Department: -
This service and spare department comes under the marketing department. The department
is concerned with timely service and spare supply which would increase the customer
satisfaction and thereby increase the next sales. The department is well equipped with the
spare parts and sales of the spares is through dealers and by direct selling.
Functions: -
• Collecting feedback repot from marketing department about products.

• Rectification of field complaints
• Framing customer satisfaction reports
• Pre delivery is providing
Maintenance Department: -
Maintenance department comes under the control of manager (Production). The department
undertakes the works electrical, mechanical and civil maintenance. The maintenance
procedure is done as a team work of supervisors and technicians. Maintenance work which
can’t be settled by the department, is done by licensed contractors and outsiders exports.
Functions: -
There are mainly mainly two types of maintenance conducted by KAL:
• Preventive Maintenance: It is carried out on a scheduled basis to increase the life

span of the machine. It is classified as daily, weekly, quarterly and yearly
maintenance.
28 | P a g e
The activities include:
➢ Prepare schedule for preventive maintenance.

➢ Check availability of machines for planned data.
➢ Check availability of spares.
➢ Prepare monthly report.
➢ Check the completeness of preventive maintenance.
• Breakdown Maintenance: It is carried out at the time of breakdown of machinery
when the breakdown of machines is informed by the concerned tradesman. The
activities include:
➢ Checks the nature of complaint whether the complaint is mechanical, civil
or electrical.
➢ Check minimum stock level of spares.
➢ Check spare parts procurement through purchase departments.
➢ Allocate technicians for repair work.
➢ Complete maintenance and repair work and hand over the machines.
Stores Department: -
Stores department is mainly concerned with receipt of material and their storage. Thus,
stores department is mainly concerned with inventory management. It comes under
manager. KAL follows ABC analysis for inventory storage. According to the nature of items
stores are maintained.
Function: -
• Rejected materials will be returned to the party within 45 days after clearing
provisional GRN. Otherwise, the item will be diverted to the scrap yard without any
further information.
• Reduce the stock of non-moving items at 10% per year.
• Control the inventory as per the level fixed for max or min stock for critical items
such as Casing, Forging, Pipes rods etc.
• Stores department also follows PDCA cycle in its activities.
29 | P a g e
Production Department: -
The firms state of the art factory is equipped with the most modern CNC machines to ensure
dimensional accuracy of each component been produced. The factory has highly
sophisticated testing facilities to maintain vigorous quality control at every stage. The proof
of the high-quality standard attained can be appreciated from the fact that KAL has the
distinctive privilege of supplying critical components to the Indian Space Research
Organization, for India’s sterling program. The activities include
• Heat treatment
• Fabrication
• Assembly
• Painting
Planning Department: -
Planning is the most basic of all managerial functions which determines the course action
to accomplish the set of objectives. In KAL an annual sale plan is made by the marketing
department. The marketing department further divides this annual plan to tentative monthly
plan to tentative monthly plan and sent to the planning department. Based on this plan the
planning department prepares plan to procedure the required of number of vehicles.
Function:
After the information is received from the marketing department and top management
regarding the monthly product requirement, the planning department fires the monthly
production target.
In KAL, planning takes place in 3 phases:
1. Planning Phase
2. Execution Phase
3. Controlling Phase
On the basis of monthly production target, planning department prepares a production plan.
Copies of the plan are sent to concern departments; Production plan consist of all critical
information about allocation and utilization of machines and materials required for
production. Incoming raw materials for production are collected from stores and distributed
30 | P a g e
to different departments. Planning departments checks all the materials issued from the
stores to different departments concerned with production. Planning department issue work
order on a quarterly basis to different production departments. The actual production is
verified against the already prepared schedule. If there is any deviation, cause for the
deviation is find out by using Root Cause Analysis or Fish Bone Diagram shortage list are
prepared and went to the material department for initiating necessary action. Planning
department also performs the controlling function. The copies of day-to-day production
performance are sent to planning department to check whether production is in accordance
with the planned level.
Machine Shop Department: -
The Machine Shop specializes in design, research, development of experimental apparatus,

medical devices, and scientific equipment. The shop’s capabilities consist of complete
design of fabrication of complex three-dimensional surfaces. Including wind tunnel models,
scientific apparatuses, 3-D mathematical models, precision tooling, structural weldments,
robotic devices, pressure vessels, stress analysis, strain gaging, design assistance, sheet
metal, plastic, and wood structures.
Quality Assurance Department: -
At every stage of manufacturing excellent quality assurance is Kerala Automobiles

Limited's prime objective. This has been made possible using equipment’s such as Universal
Testing Machine, Ultra Sonic Crack Detector, Gear Tester etc.
Functions:
In order to maintain the quality policy and quality objectives the incoming materials implant
components and finished goods undergo several inspections in different stages. There is an
“inward inspection” for checking the incoming raw materials. After details checking are
kept in the stores. The critical items are subjected to 100% inspection. Quality assurance
department also conducts calibration of the measuring instruments. Chemical lab plays a
major role in Quality assurance department, the hardness of various raw materials is checked
here.
31 | P a g e
Assembly Department: -
The assembly department is comprised of professional assemblers, engineers and

technicians, who specialize in all of the work processes, including reading drawings,
understanding the assembly process and executing the actual assembly.
Fabrication Department: -
Fabrication is the process of constructing products by combining typically standardised

parts using one or more individual processes. The Fabrication Department: Provides
manufacturing services to fabricate, assemble and process devices.
3.4 MISSION, VISION, AND OBJECTIVES OF KERALA

AUTOMOBILES LIMITED
• Mission: To provide value added service and product to the customer to earn a
reasonable profit.
• Vision: To become the top three wheelers automobile manufacturer in 10 years.
• Objectives:
✓ Reduce absenteeism from 10% to 5% in the course of one year.

✓ Improve employee’s satisfaction.
✓ To enable individual employees to improve their efficiency by 5% in the course of 1
year.
32 | P a g e
3.5 PRODUCT PROFILE
Figure 3.2 - Neem G
Neem G -the Electric Auto is been Manufactured by KAL (Kerala Automobiles Limited)
with the specification of Swing Arm Suspension at the front and Leaf Spring Suspension at
the rear. Dual Hydraulic Circuit with TMC, Single control acting on all wheels.
➢ Vehicle data
Basic model: Kerala Neem G
Type / Description: 3-Wheeler
Category of the vehicle: L5M
➢ Steering
Type / Description: Handle Bar Steering
Ratio: 1:1
➢ Suspension
Type / Description: Swing Arm Suspension at the front and Leaf Spring
Suspension at the rear
Shock absorbers: Front – 2 Nos Hydraulic, Telescopic, Rear – 2 Nos Hydraulic,
Telescopic
➢ Brake
Service brake: (Brief description) Dual Hydraulic Circuit with TMC, Single
control acting on all wheels.
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Front (Disc / Drum): Drum – Hydraulic

Rear (Disc / Drum): Drum – Hydraulic
Parking brake: Mechanical
➢ Wheels and tyres

Wheel rim size; OD – 231 mm, ID – 136.5 mm
Tyre size designation including ply rating: 4.00” – 8” (6 PR)
Speed index: E
Load index / Load rating: 76
Tyre Type: Cross, Tube
➢ Weights (in kg)

Vehicle kerb weight :310 Kgs
Vehicle kerb weight together with rider (reference weight) :460 Kgs
Gross Vehicle Weight :600 Kgs
➢ Description of The Traction Battery

Kind of Electro – Chemical Couple: Lithium Ion
Nominal Voltage (V): 60 V
Battery Maximum Thirty Minutes Power (Constant Power Discharge) (kW) :5.4 kW
Battery Capacity, Ah in 2 h :90 Ah
➢ Traction Motor
Make: KAL
Working Principle: BLDC
Direct current / alternating current / number of phases: D C
Separate excitation / series / compound: Separate
Type: Dual Geared
Use: Mono motor / multi motors (number): Mono
Maximum Power (kW): 2.2 Kw
34 | P a g e
Figure 3.3 - Kerala Green Stream (E-cart)
Special Purpose battery operated vehicle with overall length:2765 mm, Width: 980 mm,
Wheel base of 2200 mm, Ground Clearance: 145 mm, GVW: 301 Kg.
UP COMING PRODUCTS
Figure 3.4 - Electric Pick-Up Van
Swing arm suspension at the front and leaf spring suspension at the rear. Dual hydraulic
circuit with TMC, single control on acting on all wheels.
35 | P a g e
Figure 3.5 – Electric Tipper Van
KAL Tipper available in electric model. Overall Length:2515 mm, Overall Width: 1375
mm, Wheel Base: 1870 mm, Ground Clearance: 120 mm, GVM: 750 kg.
36 | P a g e
CHAPTER 4
WORK DIARY
37 | P a g e
4.1 WORK DIARY
PERSONAL PROFILE
NAME OF THE STUDENT: ANUPAMA D ANI
CANDIDATE CODE: 59521817012
NAME OF THE COLLEGE: ALLAMA IQBAL INSTITUTE OF

MANAGEMENT
WORK PROFILE
NAME OF THE ORGANIZATION: KERALA AUTOMOBILES LIMITED
BOARD FUNCTIONAL AREAS: HUMAN RESOURCE &

ADMINISTRATIVE, MARKETING,
FINANCE, PURCHASE, RESEARCH
& DEVELOPMENT, SERVICES &
SPARES, MAINTENANCE, STORES,
PRODUCTION, PLANNING,
MACHINE SHOP, QUALITY
ASSURANCE, ASSEMBLY,
FABRICATION
ORGANIZATION GUIDE AND AJITH KUMAR

DESIGNATION: HR MANAGER
38 | P a g e
4.2 NATURE OF WORK UNDERTAKEN
The internship program started on April 13, 2022, under the guidance of Mr. Ajith Kumar
(HR Manager). He gives the overall idea about the organization and during the internship
period got a chance to work under various departments. First day, gave an introduction about
the company and a brief idea about various department. The guide also elaborated the major
activities under going in the company and also gave a clear idea about the Human Resource
department of the company. Mr. Ajayachandran (Management Trainee) took me through
the Vision, Mission, and Values of the organization.
AN AVERAGE DAY
My internship was from 13th April 2022 to 18th May 2022. The office time was from 10.00
am to 5.30 pm. The organization had 6 working days in a week. Sunday is holiday.
I was working as a HR Intern. The organization was planning to give increment to the
employees based on their seniority and attendance. I was asked to assist them.
39 | P a g e
4.3 TARGET VS ACHIEVEMENT
DATE ACTIVITY PROCESS AND LEARNING

OBSERVATION
13/04/2022 Joined Kerala Automobiles Visited the company, Get to know about
Limited for the internship met the Manager KAL, its work culture
and environment.
16/04/2022 Induction about Kerala Prepared company Got an overview about
Automobiles Limited profile and the company.
organization chart
18/04/2022 Department Visit (includes all Interact with the Understood the
departments like Finance, department heads functions of these
HR, Purchase, etc... ) and observe the department
working
environment
19/04/2022 Sample Report preparation of Research about Better understanding
a labors meeting reports and went about the reports
through various
samples.
20/04/2022 Visited Services and Spares Interact with the Understood the
Department (includes department head and functions of Services
marketing department Management and Spares department
trainees to form a and get an idea about
separate Marketing formation of separate
department. Marketing department
21/04/2022 Prepare a plan to form a new Deep research on Get to know about
department various aspects of detail about KAL
the plan and
implementation
methods
25/04/2022 Prepare a reply letter to a Deep evaluation of Better understanding
Govt. Enquiry letter received the letter and about the letters
by the company research and went
through various
letter samples
26/04/2022 Preparations of the body of Research and Got feedback
the letters proofreading improvement as per
feedback needed.
27/04/2022 Had discussions with HR Final drafting of the Got an idea about
Manager Mr. Ajith Kumar letter KAL on the HR
based on the replying letter managers point of
view
40 | P a g e
03/05/2022 Trade Internship Sorting Data of Learned and

Reimbursement Interns from confirmed that the
Accounts Dept., Interns works properly
GAD and NAPS and got their payment
Portal. (2019 Jan –
2021 Dec)
04/05/2022 Helping the Management Sort out the details Understand various
trainees of workers in GAD working scenarios and
Dept. and Accounts learned building
Dept (2010 Jan to relationship with
2022 Jan) employees
05/05/2022 Comparing our product with Make a comparison Learned about the
other competitors’ product. chart includes all the market, vehicles and
(Such as Vehicles mileage, competitors, which specifications of
safety and other facilities) facilities do they various competitor
provide extra to products.
customers
06/05/2022 Department Visit (Machine To make a plan of Understand different
shop, stores…) action to improve the parts of the vehicle
quality and other and knowing about the
facilities of the frequently occurred
product complaints
09/05/2022 Department Visit (R&D) To help the Got an idea about
management trainees future innovations on
for developing new three wheelers
design
10/05/2022 Suggest some marketing ideas Consult with HR Learned about new
and improvements to improve Manager and techniques and
and redesign our product Management procedures to improve
trainees to make a and compete with the
plan of action. competitors
11/05/2022 Verifying Employee Verifying the Learned to verify
Increment details documents and cross employee documents.
checking whether
any of the
employees’
increment was
pending.
12/05/2022 Collection of data for Final Visited all the Got a idea about the
Report departments for data preparation of the
collection. final report
16/05/2022 Preparation of the final report Proof read the report Learning from the
and feedback was feedback on
given. improvement
18/05/2022 Final Report submission Approved by HR Internship completed
manager
41 | P a g e
4.4 SWOT ANALYSIS
SWOT is a system approach to understand the environment of the company. SWOT stands
for Strength, Weakness, Opportunity, Threat. Strength is the inherent capacity which
organization can use to gain strategic advantage over competitions. Weakness is an inherent
limitation or constraint which creates strategic disadvantage. Opportunity is a favourable
condition in the environment creates risk. Threat refers to factors that have the potential to
harm an organization.
Like any other company KAL is also having its own Strength, Weakness, Opportunity,
Threats. They are mentioned below. The sources of data are from employees and from my
own observation.
STRENGTH:
• ISO 9001-2015 certified company.

• Product quality
• Major market share in North Indian states.
• Enter into new product line.
• Introduction of LPG and Electric Models.
• Low cost and well dedicated staff.
• Launch of suggestion box for constructive suggestion from employees.
• Company is keen in providing salaries and other monitory benefits.
• Good training and induction program for workers.
WEAKNESS:
• Outdated product design.

• Outdated production techniques.
• Lack of sales promotion activities.
• Manual working.
• No petrol models since 2000.
• Lack of proper finance for R&D when compared with competitors.
• Less market share in South India.
• Lack of new technology.
42 | P a g e
• Low level salary for apprentice daily wages.

• Absenteeism.
• Lack of promotional activities based on performance.
• Political interference.
OPPORTUNITIES:
• Joint venture with other companies to earn more market share.

• Opportunity to explore new foreign market.
• New trade promotional tools can be used.
• Concentrating more on sophisticated precession components for space application of
VSSC or ISRO.
• Ability to grow rapidly because of growing demands.
• Support from government helps to tackle certain legal obstacles.
• Introduction of new electric three wheelers will surely help KAL to capture major
market share.
• Emergence of new technology available in the market.
• The company is in the process of implementing new strategies to achieve quantum
jump in customer satisfaction.
• Establish market in foreign country.
• Major market share in North India.
• Good Industrial Relation.
• A good dealership network which ensures that products reach customers on time.
THREATS:
• Competition.
• Resistance to change.
• Emergence of most modern techniques.
• Competitors are having major market shares.
• Less market share in South India.
• More involvement of trade unions.
43 | P a g e
4.4.1 FINDINGS
Positives:
• Company possesses the entire basic factory infrastructure.

• Company has its own specific customers.
• Skilled workers.
• Availability of manufacturing machines.
• Availability of contract workers all the time, when necessary.
• The location of the company near highway and close to city, with railway and other
mode of transportations near with gives an advantage.
• Presence of experienced employees in their respective domains.
• Well managed recruitment system.
• A well-maintained factory working time and attendance system, affordable to
employees.
• HR department gives training to the various employees as per the chances available.
• Government pay scale for employees.
• Implementation of disciplinary procedure.
• KAL has its own exclusive customers and dealers.
• A powerful vehicle having enough mileage in any road condition.
• Comparatively good and affordable canteen.
• Good insurance scheme is provided for employees.
Negatives:
• Absence of modern office management system.

• Gloomy working atmosphere inside the office.
• Lack of employee energy.
• Lack of motivation in employees.
• Lack of implementation of modern concepts of management in some areas.
• Need a change in the attitudes of employees towards work and company. Need to
avoid lazy attitude in employees.
44 | P a g e
• Though absenteeism could have reduced, there exists necessity of employee

engagement programs. Make sure that employees do either their job or some
assigned job when they are inside the office.
• The need to renovate the drinking water facility and toilet facilities and its
maintenance after renovation.
• Need to manage unskilled employees in some way so that they can be assigned
some job which will be productive for the company.
• Need to re-structure the incentive plan based on production.
• Problem making labours and unions are burden to the management.
• Lack of safety measures of workmen is to be re-checked.
• Lack of young, creative minds in some domain areas.
• Low profit is an obstacle on the way to development.
4.4.2 SUGGESTIONS:
The first step in striving the organization is to find maximum profit and make the net worth
positive. For that a collective effort is necessary. Marketing is to be done efficiently. Find
out new dealers, make more promotions in rural areas, give creative, brilliant youngsters (in
the form of trainees) place in company in the marketing department. Product diversification
is another source by which revenue can be generated. Find out more potential products that
can be manufactured in the company using the infrastructure in the plant. It will be useful
to avoid the idleness of machines in the factory, thus by utilizing the resources maximum.
After collecting the maximum fund, the further proceedings can be done effectively.
Company can be develop step by step, only after achieving money as profit for further
development process.
• Can provide employee motivation in KAL. This is to be done along with the other
development activities towards making profit. Support the employees who have
positive attitude, high energy, aspiration to grow etc.
• KAL can think of providing a pleasant work atmosphere, after getting enough
revenue.
45 | P a g e
• KAL can think of optimizing the use of paper documents and can shift to e-
documents, which will help to reduce the paper use and file storing burden, helps to
access data easily. An analysis/study can be carried out.
• Production based incentive scheme can be re-structured.
• It can think of developing exclusive products for South India.
• Employees in technical sections need to be motivated to make new innovations and
creative employees should be awarded.
• The need to renovate the drinking water facility and toilet facilities and its
maintenance after renovation.
• It’s the time to replace canteen furniture and renovation.
4.4.3 CONCLUSION
KAL is one of the three wheelers manufactures of India. The products of KAL are sold
under the brand name “KAL”. KAL was established in 15th march 1978 and was officially
inaugurated in 1984. KAL is a public sector company. As that of any public sector
enterprises KAL’s gestation period was long with many ups and down. But a committed
skillfull workforce and efficient teams of management as help KAL to overcome all
obstacles. Company has already entered into the international market and it has strong hold
markets in north Indian states slight improvement in technological aspects and challenge to
its competitors like Mahindra, Hykon, Baja Auto ltd. Piaggio, TVS etc. the only drawback
is that presently the company is not able to meet its demanded production to inadequate
resources.
Within a company, Human resources (HR) are responsible for screening, recruiting, and
training employees, as well as implementing employee processes. In KAL, Human Resource
department is under the control of GM (Human Resource). The activities of this department
are directly reported to the MD.
This department identifies the right employees, interact with them and find out their needs.
46 | P a g e
4.5 BIBILIOGRAPHY
• www.threewheelersindia.com
• www.keralautomobiles.com
• www.keralapublicsectorindusrty.com
• https://www.slideshare.net/homeworkping3/58604684-
keralaautomobilesltd
• https://kal.org.in/about-us/
• https://en.wikipedia.org/wiki/Kerala_Automobiles_Limited
• Company Journals
• Department files
47 | P a g e

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A REPORT ON THE INTERNSHIP AT KERALA AUTOMOBILES LIMITED

1.1 OVERVIEW OF THE INTERNSHIP

Table 1.1 Overview of the Internship

Duration One month

Internship Period April 13, 2022 – May 18, 2022

Mode of Internship Offline

1.2 OBJECTIVES OF THE INTERNSHIP

1.3 SCOPE OF THE STUDY

• To study working environment

1.5 LIMITATIONS OF INTERNSHIP

2.1 INDUSTRIAL ANALYSIS

A three-wheeler is a three wheeled vehicle propelled by petrol/CNG, diesel, or electric

3.1 NATURE OF ORGANIZATION AND ITS BUSINESS

Figure 3.1 – KAL

Kerala Automobiles Limited (KAL) was incorporated in 1978 as a Government of Kerala

The Board of Directors:

3.2 ORGANISATIONAL HIERARCHY

SENIOR MANAGER / A.O

3.3 FUNCTIONAL DEPARTMENTS

• Human Resource & Administrative

Human Resource & Administrative Department: -

ASST. PERSONNEL OFFICER JR. PERSONNEL OFFICER

The number of employees in an organization is decided by the number of products

Recruitment and selection

There are three methods of recruitment

1) Direct Recruitment: It is done through advertisement in newspaper.

Training and Development

1) Based on Standing order.

Wages and Salary Administration

There are two scale of pay. They are:

1) For officer segment (every 4-year revision).

SALARY RELATED TERMS

Dearness Allowance (DA)

There are two types of DA:

This DA is for workmen category. This is fixed by the government based on

Statistics Department’ prepares Consumer Price Index. This DA percentage

Washing allowance: Rs 30 per month is given to workmen as washing allowance.

Special allowance: Rs 25 per month to senior tradesman.

Shift allowance: First shift – Rs 2.50

Shoe allowance: Administrative department provides Rs 300 as shoe allowance in

Medical leave - 10 full day leave/20 half day leave.

Total number of leaves in a year.

TOTAL LEAVES - 125/year.

Promotion opportunities and appraisal

Engineer, Senior Engineer, Assistant Manager, Manager, Deputy General Manager,

1) Accountant, Junior Personnel Officer, Junior Law Officer, Superintendant, Sales

In KAL promotion is based on

Performance Appraisal Policy

• It should be in prescribed form.

Name of union Reg. No. Affiliation

From the discussion with HR Manager

• In Department Performance Appraisal (DPC), HRD department has the plan to

The main functions of administration department are as follows:

for an amount up to RS 40,000. It is supplied to each respective department as per

• The marketing department ensures the company’s product are dispatched to

The products purchased are divided into 5 categories – A, B, C, D, E.

Product type A: includes – tyre, engine, tube, sheet etc.

The Procedure for a purchase

➢ Enquiry for question