INTERNSHIP REPORT

ACKNOWLEDGEMENT
All gratitude is due to Almighty Allah and peace be upon the Holy Prophet Muhammad (SAW). We are really thankful to Sir,Fazali Subhan for his kind supervision and advice in the preparation of this report. He will always remain a source of inspiration and motivation for us. We also wish to express our gratitude to Eng,Riaz Muhammad Assistant manager in HR department and all the staff of KSB for their cooperation throughout our internship. Our sincere thanks are due to our loving parents and sincere friends for their continuous encouragement and moral support which ultimately made it happen.

Siyab Muhammd Sajjad Farman Khan

EXECUTIVE SUMMARY
The Klein Schanzlin and Becker (or KSB) Group is one of the leading producers of pumps, valves and related systems. KSB has expand themselves that they are know all over the world and mostly everywhere, where there is a new company or building the products of KSB there its has a history of 130 years in business sector. KSB is one affiliated group in many countries. The companys international operation makes the organization as manageable dimensions for short pathways. They are large enough to offer the whole spectrum of operations and all the interesting activities one expects of a global player. They are there in every sector of production engineering, design and development, sales and marketing, services, materials management or in all the areas of business administration. The aims to find out whether KSB is managing its resources for competitive advantages by companys key business structure and operations, products as well as provides summary of its strategies. The strategic method of making process within the company through porters method. SWOT Analysis of the company provides Strengths, weaknesses, opportunities, Threats as well as provides a good framework for reviewing strategy, position and direction of a company or business proposition

ACKNOWLEDGEMENT EXECUTIVE SUMMARY CHAPTER 1 INTRODUCTION CHAPTER 2 STRATEGIC OBJECTIVES CHAPTER 3 PRODUCTS AND SERVICES CHAPTER 4 STRATEGIC ANALYSIS CHAPTER 5 SWOT ANALYSIS CHAPTER 6 COMPETITIVE ADVANTAGE CHAPTER 7 CORPORATE GOVERNANCE AT KSB CHAPTER 8 FINANCIAL STATEMENT ANALYSIS CHAPTER 9 ORGANIZATION CHART CONCLUSION

2 3 6 6 11 11 13 13 15 15 18 18 20 20 23 23 ERROR! BOOKMARK NOT DEFINED. ERROR! BOOKMARK NOT DEFINED. 32 32 34

CHAPTER 10 RECOMMENDATIONS REFERENCES

35 35 36

Chapter 1 INTRODUCTION
KSB has been serving the community since 1887 which is founded in Germany and expanded almost all over the world in 130 years. Company main objective was innovation and development in the field of pumps and valves.KSB Production amenities in 19 countries, marketing companies and service centres in more than 100 countries. The KSB Group is on furnishing all over the world with approximately 140,000 employees globally. With Market capitalization of 707.6 million sales of companies, offices, agencies and more than 30 manufacturing sites. 2000 highly trained specialists from around 120 service centres offer customers global inspection, maintenance and repair of KSB products and even competitor makes. KSB PUMPS COMPANY profiles provided detailed financial data and key credit information. KSB Pumps Company predominantly operates in the Engineering Services sector. The Company is principally engaged in the manufacture and sale of industrial pumps, valves, castings and related parts. According to KSB Pakistan is an affiliate company of the world famous German KSB Group, which was founded in 1871. The KSB Group is among the leading companies in the field of pumps and valves with subsidiaries and affiliated companies all over the world. The KSB name stands for the highest standards of product and service quality. KSB Pakistan was established July 1959 in Lahore. The production facilities at Hassanabdal were completed in 1964 and a full fledged foundry was commissioned in the same premises in 1980. Now the company employees over 500 people and have Sales Office at Lahore, Karachi, Quetta, Rawalpindi, Peshawar and Multan. The company also operates through a dealership network throughout the country.

KSB Pakistan became a public limited company in 1979 providing a broader base for local participation. The companys shares are traded on both the Karachi and Lahore Stock Exchanges. The Company received the Merit Trophy for exports of the Federation of Pakistan Chambers of Commerce and Industry and top company award for exemplary payment to the shareholders by Karachi Stock Exchange. Another award for corporate excellence and good Management practice as bestowed on the company by the management Association of Pakistan. During the last thirty years the company has rapidly expanded its production range to include a large variety of pumps to serve various sectors of the economy. The new pumps for local production have been selected to particularly meet the requi8rements of sugar, paper and other process and chemical industries apart from meet the requirements of drinking water supply, sewage disposal and surface drainage schemes. The latest additions have been pumps of large capacity which are specifically meant for irrigation and drainage applications. Pumps are produced in various metallurgical executions including cast iron, Ni-resist cast iron, bronze and stainless steel. The range submersible motors ranging from 3HP to over 100HP. KSB Pakistan has been the major supplier to the vitally important control and reclamation projects (SCARP) installed by WAPDA. In the agricultural section, KSBs name is synonymous with productivity and reliability. The latest technology and know how has been made available to KSB Pakistans customers. KSB Pumps are produced strictly in accordance with the design and specifications of KSB AG in order to maintain standards of the highest quality. Comprehensive inspection

and test bed facilities are available at Works Hassanabdal to ensure compliance with these quality standards. The production facilities are also being regularly modernized and extended to cope with the challenges of new product technology. The foundry is capable of producing sophisticated automotive components apart from pump and valves casting and is leading supplier of tractor castings in the country.

Vision / Mission, Purpose, Goal and Core Values

KSBs vision/mission statement outlines the projected business growth that the company expects to achieve and the steps it will take to get there. Every company or business is established with a fundamental set of core values- These are usually the beliefs and passion of the founder that has flowed through to the business without a lot of conscious effort. KSB Mission KSB pumps manufacture and market a selected range of standard and engineered pumps and castings of world class quality. Their efforts are basically directed to have delighted customers in the water, sewage, oil, energy, Industry and building services sectors. In line with the Group strategy, they are committed to develop into a centre of excellence in water application pumps and be a strong regional player. We want to market valves, complete system solutions and foundry products including patterns for captive, automotive and other industries. We will develop a world class human resource with highly motivated and empowered employees. The measure of success is being a clear market leader, achieving quantum growth and providing attractive returns to the stakeholders.

Vision KSB provides the best solutions worldwide...

as an independent and profitable company demonstrating more skill than our competitors as the most successful company in our markets with employees who take on leadership responsibilities as the best peoples best company while respecting social values and the environment

Core Values
KSB believes in self-esteem of their customers, suppliers and employees. KSB works as a team where every member owns the process with an entrepreneurial spirit. KSB works with professional honesty and integrity. KSB trusts their employees and appreciate their contributions. KSB strives for continuous improvement to achieve excellence in all spheres of their activities. KSB is an equal opportunity employer and follow merit in human resources development. KSB fulfils moral obligation towards society and environment.

Acts of Success
Empowerment Empowerment refers to increasing the spiritual, political, social or economic strength of individuals and communities. It often involves the empowered developing confidence in own capacities.

Communication Communication is a process of transferring information from one entity to another. Transparency Transparent procedures include open meetings, financial disclosure statements, the freedom of information legislation, budgetary review, audits, etc. Synergy Synergy is where different entities cooperate advantageously for a final outcome. If used in a business application it means that teamwork will produce an overall better result than if each person was working toward the same goal individually.

Chapter 2 Strategic Objectives

Focus business lines
KSB grows more strongly than the market KSB achieves above average profitability KSB gains or builds on a leading competitive position

Further business lines

KSB continues its business profitability KSB makes the most of sales potential KSB contributes to the revenue and profitability of the group

Corporate Philosophy
Sustainability and corporate social responsibility (CSR) are an integral part of KSBs corporate culture. KSBs sense of corporate responsibility is not only towards its customers, shareholders and employees. In all 0f business activities, KSB are guided by the principles of sustainability and fairness in the way we deal with the environment and society.

Global Compact
As a signatory to the Global Compact, KSB is committed to upholding the ten principles of the United Nations, which are aimed at promoting sustainability and fairness in the business environment.

Environmental Protection
KSB is aware of the threat to the climate and the depletion of natural resources. That is why KSB support the goals of the Kyoto Protocol. KSBs products and technologies contribute to energy efficiency and environmental protection. In addition, KSB work processes and working environment are designed to require as little energy and as few raw materials as possible.

Corporate Social Responsibility (CSR)

KSB aims to help resolve social problems for the common good. Education for young people is a key theme of the companys social commitment and is also part of its corporate social responsibility. KSB is therefore helping to pave the way for young people to develop their skills early enough so that they can later pursue a career thats the right fit for their talents and options.

Chapter 3
Products and services
KSB is manufacturing engineering products which includes different types of pumps and valves which are used in both public sectors as well as in private sectors. These pumps are mainly used in water, industry, energy, waste water management and agriculture.

Pumps
KSB mainly deals in Centrifugal pumps these pumps works on the mechanism of centrifugal force (a force keeps a body in a circular path).The pumps use a propeller fan shape matter which moves the water or air in circular path with the help of motor to create pressure to flow in the water or air in and out ward direction.

Valves
KSB also manufactures valves that are used to control flow of different types of fluid. Values are basically to block and unblock the fluid in different situations or circumstances.

Services Offered by KSB

KSB offers complete customer support and nationwide after-sales service for convenience of its valued customers. At KSBs Customer Service Canters, highly qualified and professionally trained Engineers and Supervisors are available to provide expert services.

Key Services Offered

Technical Support on Complete System Solution Repair, Maintenance & Overhauling of Pumps Ex-Stock Emergency Spare Parts Availability Installation/Commissioning & Supervision Services Contracts Customer Complaint Handling

 Life Cycle Cost Calculation Inspection & Repair at site Energy Audits

The customers receive on the spot value-added services ensuring quality of product in minimum time with cost effectiveness. KSB is global player operating in more than 30 countries of the world. The Network of Sales and services in Pakistan of KSB are offered at the head office, KSB Sales, KSB Dealers and repair workshops all over Pakistan.

Chapter 4
Strategic Analysis
For several years, the share pump-related services have taken in the value creation chain has been on the increase. The term is used to describe the road from the raw material to the consumer plus the value added at every station. In KSB Pakistan the Structure in the designing of implementing and evaluating strategies is based on the specific process of the organizations mission, Vision and objectives, developing policies and plans. A balance scorecard is often used to evaluate the overall performance of the business and its progress towards objectives.

Poters Five Model

Poters five forces have been analysed to develop KSB successful marketing strategies. By focusing and analysing the structure of and dynamics between the Five forces Competitor, Potential new entrants, Customer, Supplier and Substitute. KSB is working on to find the opportunities for improving upon its marketing strategies. These forces are identified as follows. Rivalry among Existing competition
KSB belong to Metal and mining Engineering industry of Pakistan. In present days the industry is in growth stage. The major Existing competitor in the industry is following. MAK Pumps Company Limited HMA Pumps Company Flow Pak Pumps company Kinetic Flow Systems

KSB has also faced competitions from Kirloskar Bros. both companies have achieved their reason of competitive advantage as well as quality in terms of product services and innovation the rivalry among these firms is mainly based on 1. Price 2. Flexibility 3. Quality Service 4. Differentiation 5. Time. These five identify the real competitor of the business. Threat of new Entry New Entrants In current scenario the threat of new entry to KSB is very low due to intensive competition in industry, and other barriers like high economy of scale, lack of technology, lack of experience, strong customers loyalty, strong brand preference and government policies etc. In 1970 Dawood engineering introduces new technology in the pumps and valves business. In after that a joint venture between the cheenab engineering and dawood revealed new entity in the business of manufacturing goods. Bargaining Power of Consumer As the industry is in growth stage in which Bargaining Power of Consumer often high, therefore KSB is trying to reduce the Bargaining Power of his Consumer Product is to be provided to consumers on economical cost prevailing in the market. All facilities such as installation, commissioning, periodically repairs & maintenance are to be provided by the Suppliers. Suppliers as and demanded by them on Priority basis. KSB Operates in the field of Industry and agriculture sector and industry sector is related with the industry of spare parts which includes companies such as Toyota and Honda. But as far as agriculture sector is concerned the actual consumer is the agricultural land consumer.

Bargaining Power of Supplier The Bargaining power of supplier affects the intensity of competition. As large organization KSB deals with lot of suppliers who are providing goods and services to KSB as well as to its customers. Therefore KSB and their suppliers assist each other with responsible prices, improved quality. Development of new services, Just in Time deliveries, and reduced inventory cost. Both KSB and suppliers deals by think win win. There is a supply chain Model Consumer KSB Supplier of component group and systems. Supplier of components systems suppliers of c part Supplier of un-machined semi finished and standardized parts. Threat of Substitute Products In industry Metal and mining engineering the firms produces highly expensive products to which the substitute are not easily available in market. The sector is in state of rapid growth and technological development, and therefore new competitors are coming to the sector even though the sector is dominated by KSB As far as other companies are in they are playing good role in the market. To eliminate the threat of substitute product KSB take the following initiates
Products to be supplies on low case High-performance design or high quality consistent quality. Rapid delivery (on-time delivery) Flexibility= Variety/Volume. Superior customer service. Convenience.

Chapter 5 SWOT Analysis

Strengths
Manufacturing facilities (Local presence) Wide range of products Trained and expert staff Brand image strength Service setup Market leader Compliance with international quality standards Less number of competitors in local market.

Weakness
Takes long time to import material Prices are too high in todays competitive world Lack of expertise of submersible sewage pumps/other imported pumps. No prices for imported pumps readily available Negative perception in market for giving extra ordinary discount. Over head are high (salaries, expenses & row material and energy cost) Late delivery of Pumps (high lead time)

Opportunities:
Growth potential in new markets Heavy Budget allotment in Govt. Sector for water supply Schemes

 High profit margins in Turbine pumps Selling of system solutions to customers

Threats
Registration of new companies in Govt. Sector Price war with competitors High cost of Local/Imported pumps Lack of knowledge /Skills for imported pumps specially submersible

Sewage pump, which is becoming a threat for KSB day by day. KSB takes some important initiatives to capitalise their strength of trained and expert staff and remove their threats of lack of knowledge for imported pumps by hiring professional team for research and development department. KSB remove their weakness by purchasing material in the local market in instead of importing products and they have to offer the product at low prices.

Chapter 6 Competitive advantage

KSB achieved competitive advantage by offering products and services according to the changing customers demand by providing quality product at low cost as compared to their competitors. KSB cannot lose their competitive advantage easily because they have the potential to survive and compete in industry. KSB can sustain their competitive advantage by adopting new technology and expertise. KSB can defend their competitive advantage by continuously improvement and innovation in their product and by using latest technology in their process.

The emergence of competitive advantage

External sources of change Changing customer demand Changing prices Technological change

Sustaining competitive advantage

Identification Incentives for imitation Diagnosis Resource acquisition

Competitive advantage in different market settings

Market type Source of imperfection of competition Opportunity for competitive advantage

Types of competitive advantage: cost and differentiation

Cost advantage (similar product at lower cost) Differentiation (price premium from a unique product)

Innovation / Change
There are plenty of innovation and changes around the world, but the most important change is going on the Australia. With water consume and recycling the water and in industrial sector high pressure pumps showcasing in exhibition in Brisbane 2010.gobally KSB innovating a product to convert the thermal heat in to energy and use it to increased the operating reliability of optimised high suitable handling mineral and synaptic. Maintaining innovation is critical and especially in tough times and getting it right is as must. In 2009 KSB introduce a new pump called ZORRO that was a new innovative change. That was introduced with the current study of the customer needs. The company define its change on following factors.
Develop productivity measure Determine critical )bottleneck) operations Develop methods for productivity improvements. Establish reasonable goals Get management support

 Measure and publicize improvement Dont confuse productivity with efficiency.

Chapter 7 Corporate Governance at KSB

Corporate Governance is necessary because it provides structure through which the objectives of a company are set and also means of attaining that objectives are determined. KSB adopt highly in controlling and Responsible corporate governance. The rules and regulation of corporate governance are based on the German Corporate Governance Code at KSB. The long-term success of KSB is achieved through best and responsible corporate governance. The responsibilities are distributed between the Board of Management and the Supervisory Staff. The guideline of German Corporate governance code is a key factor by which they work towards ensuring compliance within organization. This Code provides suggestions and recommendations to the management and supervision of KSB subsidiary companies and adopted nationally and internationally recognized standards of best and responsible corporate governance. Developing the principles of corporate governance in all areas of the company is the main objective of KSB.

Board of Management of KSB Pakistan

The KSB Group is operating and runs by board of management. The rules and guideline are regulated and implemented by the Board of Management within the organization. Mohammad Masud Akhtar (CEO) Mohammad Masud Akhtar Has been a member of the Board of Management and CEO since 2006.He is Certified Director of Pakistan Institute of Corporate Governance.

He is also in charge of Operations, Sales and Marketing, Central Purchasing, Programmed Coordination and the Business Unit Submersible Pumps. In addition, he is responsible for HR and HR Director.

Sajid Mehmood Awan Sajid Mahmood Awan has been a member of the Management Committee KSB Pumps Company Limited since 2006. He is FCMA, FCIS and Certified Director. He has 19 years of experience in Finance & Accounting, Corporate Governance and Compliance.

Supervisory Board of KSB Pakistan

The Supervisory Board of KSB identifies the corporate management issues and regularly report to the Board of Management and monitors their own works as the part of their function as defined in law, in the Articles of Association . Saeed Zafar General Manager Customer Services Saeed Zafar has been a member of the company management KSB Pumps Company Limited Since 2007. He has 27 years of experience in Sales & Operations.

Shahzad Saleem Manager Human Resource Shahzad Saleem has been a member of the company management as Manager Human Resource KSB Pumps Company Limited since 2012. Business graduate by profession, he has 8 years of experience in HR operations.

Khawaja Rasheed Head Internal Audit Khawaja Faisal Rasheed has been member of the company management since 2006. Management Accountant by profession he is CIA, CISA and CFE (USA). He has around 15 years of work experience. Shahzad Umer Deputy General Manager Quality, Health, Safety & Environment (QHSE) Shahzad Umer has been the member of the company management since 2010. He is a qualified B.E from National University of Sciences and Technology. He has worked with a number of national and international organizations in various capacities of Quality Assurance, Quality Management and HSE Systems.

KSB Pakistan Offices Contacts

NO 1

Offices Lahore Multan Rawalpindi

Address 16/2 Sir Aga Khan Road Lahore. Golden Heights, Nusrat Road, Multan. 309, A3 Peshawar Road, Westridge 1, Opp. Valley Clinic, Rawalpindi. 307 & 308, 3rd Floor Parsa Tower, Block 6, PECHS Shah rah-e Faisal, 3rd Floor Mall Tower , Zonkiram Road near mellenium Mall

Telephone 0423- 63673881

Fax 042-36368011

Email [email protected]

2 3

061-111 572 786 051-111 572 786.

061-4541784 051-5472612

[email protected] [email protected]

Karachi

021-35390481-2

021-35390483

[email protected]

5 6

Peshawar Quetta

091-5285679 081-2829635

091-5278919 081-2839721

franchise.kpk @ksb.com.pk Gulistanmachinery@ yahoo.com

Per Share Prices of KSB in KSC for 4 years (Monthly)

Rupees*

Date 2/1/2013 1/1/2013 12/3/2012 11/1/2012 10/1/2012 9/3/2012 8/1/2012 7/2/2012 6/1/2012 5/1/2012 4/2/2012 3/1/2012 2/1/2012 1/2/2012 12/1/2011 11/1/2011 10/3/2011 9/1/2011 8/1/2011 7/1/2011 6/1/2011 5/2/2011 4/1/2011 3/1/2011 2/1/2011 1/3/2011 12/1/2010 11/1/2010 10/1/2010 9/1/2010 8/2/2010 7/1/2010 6/1/2010 5/3/2010 4/1/2010 3/1/2010

Open 431.64 423.25 367.25 369 370.5 356.25 372.2 357.1 404 434.5 439.2 432.45 401.9 386.65 392.51 417.1 391 430 524 524.1 575 594.35 601.25 607 590 584.55 557.6 550 506.85 475.45 512 461 466.85 466.3 446 463.45

High 434.1 448 423.25 369 378.2 382 388.15 373.6 404 451.7 439.3 454.7 450 400.35 392.51 427 434 435 524 550 588 594.51 610 613.6 640 624.45 583 579 528.95 585 541.65 513.4 490 490 490.25 463.45

Low 427.5 418 367.25 348 359.25 352.9 348.55 353.1 355.05 386 415 423.2 401.9 366.1 357.95 376.3 362 358 397.8 520.5 513 557.9 578.75 505 585 562.2 545 542.2 501.05 471.85 471.95 457.65 463 435 440 440.5

Close 427.5 431.35 423.25 358.1 370.25 379.85 355 373.6 367 398.55 434.5 441 423.8 398.25 366.7 376.65 430.2 389 410 520.5 531 592 590 603.1 602 590 582.25 550.2 526.65 505 476 508 463 465.15 467.5 447.75

Volume 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Adj Close 427.5 431.35 423.25 358.1 370.25 379.85 355 373.6 367 398.55 434.5 441 423.8 398.25 366.7 376.65 430.2 389 410 520.5 531 592 590 603.1 602 590 582.25 550.2 526.65 505 476 508 463 465.15 467.5 447.75

2/1/2010 1/5/2010 12/8/2009 11/5/2009 10/2/2009 9/1/2009 8/3/2009 7/2/2009 6/2/2009 5/6/2009 4/1/2009 3/2/2009 2/2/2009 1/2/2009

433 392 392.02 397.98 461.51 393.82 329.21 330.42 275 270.9 193.75 230 262 298.25

473.9 430.1 392.02 412.9 463.6 430 400 340 335 294 260 230 270 310

430 392 363.7 396.68 399 379 327.22 326.5 275 270.9 193.75 188.05 249.22 237.14

463.85 422 385 398.85 407.72 430 400 326.5 304 285 260 204.78 249.22 253

0 0 0 0 0 0 0 0 0 0 0 0 0 0

463.85 422 385 398.85 407.72 430 400 326.5 304 285 260 204.78 249.22 253

Current ratio
Current ratio= current assets/current liabilities

Year 2006 2007 2008 2009 2010 2011

Current assets 734,516 921,314 997,293 1,336,274 1,483,920 1,631,367

Current liabilities 347,408 459,208 505,152 768,817 918,665 1,258,172

Current ratio 2.11 2.01 1.97 1.74 1.62 1.3

Interpretation The current ratio is one of the most common ratio analyses which I used to measure of the solvency of firm and its ability to pay short term obligations. As shown in the table in 2006 the bank has 2:11 ratio which means that if it has two rupee it has to pay 11 paisa as liability that is pretty much good ratio for KSB, after 2006 the current ratio gradually decrease year by year and in 2011 at came to 1:3 The reason of decreasing in currents ratio taking short loans for expansion business and made new investment in new project.

Operating Profit Margin

Operating profit margin=Operating profit /Sales Year 2006 2007 2008 2009 2010 2011 Operating profit 211,111 255,115 270,782 254,782 205,618 (184,167) Sales 1,401,145 1,664,543 1,876,445 2,024,248 2,047,989 1,944,764 O.P margin 15.07 15.33 14.43 12.59 10.04 -9.47

Interpretation The operating profit margin shows the percentage of each rupee remain as profit after the deduction of costs and all expenses except interest and taxes. The profit margin ratio decrease after year 2006 in every year. By analysis the profit & loss statements the Material consumption expenses increases by lunching new products in the market.

Return on Assets
Return on Assets=Net Profit/Total Assets* 100

Year 2006 2007 2008 2009 2010 2011

Net profit 126,393 170,680 170,688 147,789 99,779 -106,120

Total assets 829,944 1,081,953 1,224,286 1,594,110 1,809,108 1,997,597

ROA 15.93 16.55 14.89 9.92 6.47 -4.5

Interpretation This ratio measures the effectiveness of management that how it uses the available assets to generate revenue. Higher the ratio better is the position. In cases of KSB it is decreased from 15.93%to -4.5% in 2011 which shows in of organization performance. The reason of consistently decreased return on assets ratio by increasing materials consumption and taken loans for the lunching new products in market to capture more market share.

Inventory turnover ratio

Inventory turnover ratio=Sales/inventory*Times

Year 2006 2007 2008 2009 2010 2011

Sales 1,401,145 1,664,543 1,876,445 2,024,248 2,047,989 1,944,764

Inventory 308,171 288,347 394,488 414,139 504,449 436,319

Inventory turnover ratio 2.27 2.92 2.45 2.45 2.08 2.42

Interpretation This ratio measure the firm selling performance of its inventories compared to industry average and firm holdings excessive stock of inventories. The firm KSB hold their Inventory turnover ratio constant with industry average.

Earnings per Share ratio

EPS=Net Profit/ Paid up capital * 100 Year 2006 2007 2008 2009 2010 2011 Net income 126,393 170,680 170,688 147,789 99,779 (106,120) Paid up capital 120,000 120,000 120,000 132,000 132,000 132,000 EPS 9.58 12.93 12.93 11.2 7.56 -8.04

Interpretation This ratio measures the effectiveness earning available to share holders of common stocks. In case of KSB the ratio was very good in 2006, 2007 and 2008 respectively but in 2011 the EPS ratio down to -8.04 due to loss. The negative EPS in recent year due increase in expenses and high materials consumption. The common stock share in market in high number with high price is another cause of negative EPs ratio.

Net Profit Margin

Net profit Margin=Net Profit/Revenue* 100

Year

Net profit

Sales

N.P margin

2006 2007 2008 2009 2010 2011

126,393 170,680 170,688 147,789 99,779 -106,120

1,401,145 1,664,543 1,876,445 2,024,248 2,047,989 1,944,764

9.02 10.25 9.1 7.3 4.87 -5.46

Interpretation The net profit margin shows the percentage of each rupee remain as profit after the deduction of costs and all expenses including interest and taxes. Higher net profit margin is preferable. The decrease in net profit margin due to increase in expense of high materials consumption. Increase in materials consumption import news machinery and installment of latest equipment to compete in industry and fulfill customers requirement

Chapter 9 Organization Chart

Board of Directors

Mr. Tonjes Cerovsky

Chairman Board of Directors

Mohammad Masud Akhtar

Managing Director

Mr. Hasan Aziz Bilgrami

Director

Mr. R. D. Ahmad

Director

Mr. Sajid Mahmood Awan Mr. Werner Spiegel

Director Director

Engr. M. Abdul Jabbar

Director

Mr. Aizaz Sarfraz

Director

Conclusion
KSB is one of the old companies in the world with the major business enterprise. KSB has a responsibility to our shareholders, employees, customers and the nation to continually improve the performance of the company and its business. Doing the works with responsible way will lead the prosperity in the industries and communities in which it participate, there are plenty of bigger challenges to be face yet, the way the company is growing to innovation of technology will provide the cutting-edge technology with less cost in internally and investment. The competitive improvement mentioned earlier gives KSB confidence that if its prepared to take the lead in the new world. It can be seen that various strategies are used by KSB in order to gain advantages over its competitors. In a competitive market a company must identify its strengths, weaknesses, opportunities and threats to strengthen the company and achieve its objectives and target different market.

Chapter 10 Recommendations

KSB may develop close contacts with permanent and contractual employees KSB may increase employee satisfaction through counseling KSB may take active part in training session May increase the profit margin & decrease the discount levels May demonstrate more professional skills than its competitors KSB needs to have more HR professionals in their HR department KSB needs to have a staffing manager in their factory at Hasanabdal because most of the

recruitment is done for the factory.

Needs more efficiency on part of the administration The HR should work more towards the organizational development KSB should give some assignments to the students coming for internship so that they could have something fruitful to do besides having a taste of office environment.

References
KSB Pumps Pakistan 2010, KSB Pakistan History, Viewed 8 March 2010, http://www.ksbpak.com/history.htm KSB 2010, a World of Difference, Viewed 8 March 2010, http://www.ksb.com/ksb/web/COM/en/company/konzern/1__ueber__uns/1a__KSB__in_ _Kuerze/ksb__ins__kuerze__en__index__art.html Companies and Markets, KSB pumps company- Company Financial and Credit information, Viewed 10 March 2010, http://www.companiesandmarkets.com/Summary-Company-Financials/ksb-pumpscompany-126216.aspx `Eng, Riaz Muhammad Assistant manger KSB Peshawar