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DEPARTMENTS OF KSFC

3.1 DEPARTMENTS OF KSFC


Department is a specialized functional area within an organization or a division, such as accounting, marketing, planning. Generally every department has its own manager and chain of command. KSFC has classified its various activities and has assigned these activities to different departments. It has the following departments.

3.1.1 Recovery Department


Collection of amounts due is termed as Recovery. Recovery of money is one of the major sources of the funds for the corporation. The health of the corporation is judged by the extent of recovery that it can affect. The repayment period is generally fixed up to 7-8 years with a moratorium period of 1-2 years for sound viable project. Head Office has two Recovery Departments called Recovery-1 and Recovery-2. R-1looks after the Bangalore cases, R-2 looks after the outside Bangalore cases. It has also two Deputy General Managers to look after recovery works for Bangalore and other than Bangalore cases. The total recovery during the year 2010-11 stood at Rs. 586.71crore as compared to Rs. 554.94crore made in the previous year.

3.1.2 Legal Department


Legal Department in Head Office is a centralized department mainly to act as a facilitator and interface with various departments of the Corporation in all the operational activities of the Corporation namely legal inputs for appraisal and for recovery in case of default in repayment or breach of contract, safe custody of records, files and security of documents is ensured. It is one of the important departments in the organization. Whenever an individual person or an individual concern applies for the loan, this department will scrutinize the documents. It creates proper securities. If the borrower does not pay proper interest, then, this department will issue legal notice, suit files etc.

3.1.3 ISO Cell


ISO performs the following functions: Documentation of quality management system. Issue and control of ISO document Arranging for required ISO training program for personnel. Conducting internal quality audit once in 3 months.

Co-ordination between M/s Bureau of Indian Standards, Bangalore for conduct of renewal audits. (Re-certification).

3.1.4 Management Information System (MIS) Department


MIS department performs the following functions: It prepares annual corporate budget and fixes the target in key operational areas. It collects weekly and monthly performance from each branch office and head office and furnishes the performance reports to the management for taking appropriate decisions. It furnishes performance of the corporation to SIDBI on monthly, quarterly, and annual basis. It furnishing information to governments Department of Industries and Commerce. It prepares operational statistics of the Corporation.

3.1.5 Secretary Department


It facilitates smooth functioning of the management (Board, Executive Committee), conducts board meetings & executive committee meetings, renders services to the shareholders, and places important matters before the board to facilitate policy making for efficient working of the corporation.

3.1.6 Credit Department


It performs the following functions: It collects the data from the loan applicants. It verifies the data. It appraises the project in terms of its financial, technical, and marketing, feasibility. Based on the viability of the project, it recommends the loan.

3.1.7 Personnel, Administration and Training Department It performs the following functions:

It frames HR policies. Training and development

Recruitment, transfer and promotions The corporation has classified employees as class-A, class-B, class-C employees. Class-A consist of executives directors, general managers deputy general managers, assistant general managers, managers and deputy mangers Class B consist of assistant managers, assistants, stenographers, Typist and clerks. Class C consist of drivers, defenders, peons etc. The corporation has unique combination of professionals on its pay-rolls - CAs, CFAs, MBAs, MAs, MCOMs, LLBs, M.TECHs, BEs, PhDs, etc., thus, diversity in its human resources is one of the great strength and asset of the corporation.

3.1.8 Hire Purchase and Financial Services


The fee based and financial services activities such as underwriting of public issue, issue management, pre-issue project appraisal and project report preparation are under taken by hire purchase and financial department at head office.

3.1.9 Library
KSFC have full- fledged special library with collection of books on finance, industries, banking etc. Library maintains data bank on industrial updates. It also contains KSFC news, magazines, various special journals related to finance, management, technology, banking, etc., annual reports of KSFC and other SFCs, different daily news papers.

3.1.10 Controller Department


It is one of the biggest departments in the organization. It consists of 4 departments, they are Accounting-1, Accounting-2, Accounting-3, Accounting-4, and its functions are as follows: To ensure timely issue of cheques to the customers. A-1 department is concerned with passing the various bills such as TA, DA,customer bill, etc. A-2 department deals with maintenance of customer A/c, loan A/c, etc where in all disbursements are entered into the ledger. A-3 department deals with cash. It is concerned with actual receipt of cash and writing of cash book. A-4 department deals with consolidation of accounts of all the branches/reconciliation of fund transfer. This department is also concerned with preparation of P&L a/c and Balance Sheet.

3.1.11 Information Technology Department


The functions and advantages of Information technology Department are as follows: It helps in maintaining and updating the records of the data of customers. The effective use of IT in accounting and all operational aspects of the corporation. Improved customer service. Improvement in communication through advanced technology. Better control over decentralized operation.

3.1.12 Asset Reconstruction Department


It performs the following functions: This department handles chronic default cases, and cases where suits are filed for further recovery. This department is also engaged in the task of liquidating assets which are seized/taken over as per the power conferred on KSFC u/s 29 of the SFCs Act. It ensures recovery of loan instalments with interest and other applicable charges.

3.1.13 Sec-29 Department


The objective of this department is to help recovery of long pending loans under SEC-29of SFCs Act, pertaining to branch offices where the loan sanctioned is Rs 25 lakhs or more and assets taken over U/S 29 will be bought for sale through Negotiation Committee which is headed by ED (F).The sale of assets will be finalized and branches will be advised to complete the sale process wherever the sale of assets is approved by competent authority.

3.1.14 Internal Audit Department


The Internal Audit Department is located at Head Office with internal audit cell at Mysore, Dharwad, and Raichur. This department performs the following functions: The department conducts audit of corporation covering all the areas of sanction, disbursement, recovery, finance and accounts, legal documentation, and general administration etc. The Internal Audit Department at HO is functioning as a nodal office andcoordinating the works of internal auditors and the audit committee of the board.

3.1.15 Treasury Department


It mobilizes the funds at competitive cost to meet the requirements of KSFC promptlyand services the funds raised.

3.1.16 Business Development and Credit Research Department


BD & CR department conducts business promotional activities to enhance business Opportunities and to explore the possibilities of extending financial assistance. The Department undertakes following activities: To design viable schemes based on the market and customer requirements. The department carries out the advertisement & publicity assignment and printing of promotional materials. The department brings out KSFC news and in house magazine of corporation. Followup with successful entrepreneurs to provide financial assistance for expansion/ diversification.

3.1.17 Entrepreneurs Guidance Department


The department undertakes following activities: To have interface with existing and potential customers and extend them necessary guidance to get financial assistance from the corporation. The entrepreneurs who approach for availing a loan in the corporation are given proper guidance in their respective business field. To create a good volume of business for corporation with its lending policies with an intention to create a qualitative portfolio.

3.1.18 Customer Grievance Cell


It is a government owned institution and it is accountable to the public. Every 1stSaturday of the month, meeting is conducted to address the cases reported to Public Grievances Cell.

3.1.19 Financial Services Department


An exclusive insurance cell with well trained staff is operated at HO.

The corporation has entered into a tie up with IFCO-TOKIO general insurance products. The corporation commenced these services from 27/02/2002. The corporation has also taken up marketing life insurance product of LIC. As per SEBI guidelines, IPOs of more than Rs 500crores needs to be monitored by way of appointing monitoring agency. The corporation is appointed to perform this task. It has now been listed in SEBI as Monitoring Agency. This activity will be taken up as fee based activity.

All these activities are undertaken by Financial Services Department

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