A STUDY ON COST CONTROL AND COST REDUCTION
AT KARANATAKA POWER CORPORATION LIMITED
BANGALORE
PRESENTED BY
NITHYA.R
1MV18MBA37
INDUSTRY PROFILE
A company owned by the government of karnataka.
It is a service of generating electrical power in the state.
Founded in 1970
Revenue RS.7744.20 CRORES(2019)
NET INCOME RS.244.35 CRORES(2019)
HEAD QUARTERS Bangaluru , India
KPCL today has an installed capacity of 8846.305 MW OF HYDEL,THERMAL,SOLAR AND
WIND ENERGY,WITH 6820 MW in the pipeline.
Industry raised the bar on the quality of deliverables and is constantly working at lowering the cost
per megawatt.a commendable cost value equation that has become a benchmark on the national
grid.
COMPETIORS - Many government as well as private organisation have taken task in power
generation in india.(like- karanataka power transmission ltd ,Reliance energy ltd).
COMPANY PROFILE
MISSION – “EXPLORING,IDENTIFYING AND DEVELOPING
OPPORTUNITIES IN POWER GENERATION”.
VISION – “ENSURING ENERGY SECURITY FOR KARANATAKA THROUGH
DIVERSIFIED ENERGY PORTFOLIO”.
NUMBER OF EMPLOYESS - 4623
PRODUCT/SERVICE PROFILE
“GENERATING POWER IS THE PRODUCT.”
A firm is providing a service of power without which the power is not possiable .
To generate a power is very expensive.
A present KPCL producing at 70% through hydro, 20% by coal and 10% by
wind.
Where KPCL has more than 20 projects.
PROMOTERS- BOARD OF DIRECTORS OF THE COMPANY.
QUALITY POLICY- Ensuring that human of karnataka have equitable get entry to
primary and fairly priced strength offering in the power all the closing household and
settlement by 12 months.
SWOT ANALYSIS
STRENGTH- [Link] of resources [Link] potential
[Link] demand for the power.
WEAKNESS- [Link] infrastructure [Link] of capacity [Link]
disputes.
[Link] opportunities [Link] power markets
[Link] in power sector.
THREATS- [Link] debts [Link] in prices 3. Entry of private players.
THEORETICAL BACKGROUND OF THE STUDY
COST CONTROL - It aims at reducing inefficiencies and wasteage
and setting up pre-determined cost in achieving them.
COST REDUCTION- It refer to real or permanent decrease in cost
which is achived by the up gradation of technology or new technology.
STUDY ON COST CONTROL AND REDUCTION
It helps in overcome pitfalls if any by taking effective decisions.
It need to ascertain or size up a company by performances
profitability ,different tools and techniques used to analyse the cost
control and reduction by cost sheet , balance sheet ,profit and loss
account.
A STUDY ON COST CONTROL AND COST REDUCTION AT KPCL
OBJECTIVE OF THE STUDY
To understand the impact on the profit and loss account due to cost
control and reduction.
Analyze the differences of cost control and reduction.
To suggest best procedure for cost control and reduction.
To study the different practices adapted by the company.
RESEARCH DESIGN
SCOPE OF THE STUDY- To reduce the cost of the company.
To maximize the productivity of the company.
HYPOTHESIS- No significant impact of cost control/reduction measures
on growth and profitability
Inefficient application of cost control and reduction techniques leads to a
decline of profit level of an organisation.
LIMITATIONS- Limit role of cost control and reduction in KPCL.
Limited information given from the company.
RESEARCH METHODOLOGY
Analyze the effectiveness with the help of annual report of the
company.
Own observation of various practices of the company.
The Analysis has been done by considering the data of the year 2016-
17,2017-18,2018-19.
The area is referenced to study at bengaluru.
ANALYSIS AND INTERPRETATION
The labour cost is high the 2016-17 but in 2017-18 it was controlled and
in 2018-19 it was increased so it sld be controlled and reduce the total
cost.
The operating profit of the company as been slightly increasing during
the 2018-19.
The company cost is incurred more for financial services rather than
other activites.
The growth ration is decreasing when it is compared with past 2 py.
The economic pressure has made the company to reduce its cost in
selling and administration expense.
SUGGESTIONS
KPCL should reduce the importing power from other states.
KPCL should adopt latest technology in generation of power.
Reduce over all budget of the company.
KPCL has to control over the employee travel costs should withdraw free
food facility of canteen
Avoid unnecessary printing cost.
KPCL should adopt control of cost and reduction as a tool to eliminate
unnecessary cost in generation of power.
CONCLUSION
COST CONTROL is an temporary arrangement to reduce the cost which is
because of the various reasons: Economic pressure, Financial
crisis,economy slow down.
COST REDUCTION is an longer period of time and the reduction made in
the services are real in nature and will be playing a role by implementing
innovative ideas from time to time which is done as an continous activity.
THANK YOU…….