A STUDY ON SRI RANGA VILAS GINNING, SPINNING AND WEAVING MILLS COIMBATORE
AN INTERNSHIP TRAINING REPORT Submitted by
(ASHOK KUMAR. M) Register No: 108001109005
in partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
in
MANAGEMENT STUDIES
INFO INSTITUTE OF ENGINEERING
COIMBATORE - 641 107 JULY 2011
INFO INSTITUTE OF ENGINEERING COIMBATORE -641 107
Department of Management Studies AN INTERNSHIP TRAINING REPORT
July 2011
This is to certify that the project entitled
A STUDY ON SRI RANGA VILAS GINNING, SPINNING AND WEAVING MILLS COIMBATORE
is the bonafide record of project work done by (ASHOK KUMAR. M)
Register No: 108001109005)
of MBA (Management Studies) during the year 2010-2011.
_________________
_________________________
Project Guide
Head of the Department
Submitted for the Project Viva-Voce examination held on ______________
___________________
____________________
Internal Examiner
External Examiner
DECLARATION
I affirm that the project work titled ‘A STUDY ON SRI RANGA VILAS GINNING, SPINNING SAND WEAVING MILLS, COIMBATORE’ being submitted in partial fulfillment for the award of MBA is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other University.
Signature of the Candidate ASHOK KUMAR. M 108001109005
I certify that the declaration made above by the candidate is true
Signature of the Guide, G.B. SABARI RAJAN, Asst. Professor Dept. of Management Studies
ACKNOWLEDGEMENT
My sincere thanks to all the Trustees of Info Institute of Engineering for extending constant support for the completion of the record work. I would like to express my sincere gratitude to our beloved Secretary Mrs.CHITRAMANOHAR for having provided me with the best facilities & infrastructure for the completion of the Record. I would express my sincere gratitude to our beloved Principal
Dr.V.PALANISAMY, Info Institute of Engineering, for his continuous encouragement. I also express my profound thanks to Dr.HEMABHALAKRISHNAN, Head of the Department-I/c, Management Studies, who has been a source of the inspiration for the successful completion of the practical and record in time. I express my due gratitude to my spirit and, Mr. G.B. SABARI RAJAN, Assistant Professor, Department of Management Studies, who gave me the guidelines and continuous support to complete this report in time. My sincere thanks to the Faculty members, Department of Management Studies, for extending constant support throughout the Project work. Finally, my great thanks go to my parents & my friends for co-operating to make this Record successful and all my friends who have contributed directly to bring out this Record.
CONTENTS
TITLE CHAPTER I INTRODUCTION TO INDUSTRY PROFILE 1.1 About the Industry in World Market 1.2 About the industry in Indian Market 1.3 Growth of the industry in India 1.4 Role of the industry in Coimbatore II COMPANY PROFILE 2.1 History and Growth 2.2 Vision, Mission 2.2 Company Profile 2.4 Product Profile 2.5 Organization Chart III FUNCTIONS OF EACH DEPARTMENT 3.1 Functions of each department 3.1.1 Role of each Manager IV SUGGESTIONS AND CONCLUSION 4.1 Suggestion 4.2 Conclusion 63 64 23 60 9 13 14 17 21 1 2 3 7 PAGE NO
CHAPTER- I
INTRODUCTION TO INDUSTRY PROFILE
1. INTRODUCTION The textile industry witnessed a unique development that started in Britain, since the spinning and weaving machines have been invented here. In recent years, all over the world, there has been high production of wool, cotton and silk and this only contributed to boosting the world economy. With the launch of textile industry in the UK, the textile production was passed over to Europe and North America, in the 19th century, after mechanization was also introduced in these areas. In time, other countries especially in Asia have started to invest more in industrializing their economies and the textile sector gained more ground. Thus, Japan, India, Hong Kong and China were eventually leading producers, since due labor force was cheap.
1.1 ABOUT THE INDUSTRY IN WORLD MARKET The industrial revolution in the 18th century acted as an incentive for the growth of textile industry, and mass production of clothing was turned into mainstream industry. Later, in the 20th century textile industry gained a rather bad reputation since the labor force was made of immigrants working in illegal "sweat shops", workers being paid less than minimum wages. While globalization has contributed to outsourcing the manufacturing process, in those areas where textile trade was common, the focus was later changed to the whiter collars, and so the industry of fashion design, and fashion modeling have began to flourish. Also known in the United Kingdom and Australia as the Rag Trade, the Textile Industry is
concerned with designing and manufacturing clothing items, together with distributing using textiles. Now the global textile market is worth more than $400, according to present statistics, even if the industry was faced with fierce competition coming from other industries, but also opportunities. It is estimated that between 2002 and 2010, the global textile production is likely to grow by 25 percent, and the region that is going to bring a major contribution to this growth is Asia. The one that has taken many steps forward to help the textile industry grow is The World Trade Organization (WTO). In the year 1995, adopted Agreement on Textiles and Clothing (ATC), according to which, all quotas on textile and clothing will be removed for WTO member countries. Despite this and the high tariffs imposed, as well as the quantitative restrictions, exports of textiles coming from developing countries are still growing. 1.2 ABOUT THE INDUSTRY IN INDIAN MARKET The Indian textile industry is one of the largest in the world with a massive raw material and textiles manufacturing base. Our economy is largely dependent on the textile manufacturing and trade in addition to other major industries. About 27% of the foreign exchange earnings are on account of export of textiles and clothing alone. The textiles and clothing sector contributes about 14% to the industrial production and 3% to the gross domestic product of the country. Around 8% of the total excise revenue collection is contributed by the textile industry. So much so, the textile industry accounts for as large as 21% of the total employment generated in the economy. Around 35 million people are directly employed in the textile manufacturing activities. Indirect employment including the
manpower engaged in agricultural based raw-material production like cotton and related trade and handling could be stated to be around another 60 million. A textile is the largest single industry in India (and amongst the biggest in the world), accounting for about 20% of the total industrial production. It provides direct employment to around 20 million people. Textile and clothing exports account for one-third of the total value of exports from the country. There are 1,227 textile mills with a spinning capacity of about 29 million spindles. While yarn is mostly produced in the mills, fabrics are produced in the power loom and handloom sectors as well. The Indian textile industry continues to be predominantly based on cotton, with about 65% of raw materials consumed being cotton. The yearly output of cotton cloth was about 12.8 billion m (about 42 billion ft). The manufacture of jute products (1.1 million metric tons) ranks next in importance to cotton weaving. Textile is one of India’s oldest industries and has a formidable presence in the national economy inasmuch as it contributes to about 14 per cent of manufacturing value-addition, accounts for around one-third of our gross export earnings and provides gainful employment to millions of people. They include cotton and jute growers, artisans and weavers who are engaged in the organized as well as decentralized and household sectors spread across the entire country. 1.3. GROWTH OF TEXTILE INDUSTRY India has already completed more than 50 years of its independence. The analysis of the growth pattern of different segment of the industry during the last five decades of post independence era reveals that the growth of the industry during the first two decades after the independence had been gradual, though lower and growth had been considerably slower during the third decade. The growth thereafter picked up significantly during the fourth decade in each and every segment of the industry. The peak level of its growth has however
been reached during the fifth decade i.e., the last ten years and more particularly in the 90s. The Textile Policy of 1985 and Economic Policy of 1991 focusing in the direction of liberalization of economy and trade had in fact accelerated the growth in 1990s. The spinning spearheaded the growth during this period and man-made fibre industry in the organized sector and decentralized weaving sector. ROLE OF INDIAN TEXTILE INDUSTRY IN THE ECONOMY Textile industry plays a significant role in the economy. The Indian textile industry is one of the largest and most important sectors in the economy in terms of output, foreign exchange earnings and employment in India. It contributes 20 per cent of industrial production, 9 per cent of excise collections, 18 per cent of employment in industrial sector, nearly 20 per cent to the country’s total export earnings and 4 per cent ton the GDP. The sector employs nearly 35 million people and is the second highest employer in the country. The textile sector also has a direct link with the rural economy and performance of major fibre crops and crafts such as cotton, wool, silk, handicrafts and handlooms, which employ millions of farmers and crafts persons in rural and semi-urban areas. It has been estimated that one out of every six households in the country depends directly or indirectly on this sector. India has several advantages in the textile sector, including abundant availability of raw material and labour. It is the second largest player in the world cotton trade. It has the largest cotton acreage, of about nine million hectares and is the third largest producer of cotton fibre in the world. It ranks fourth in terms of staple fibre production and fourth in polyester yarn production. The textile industry is also labour intensive, thus India has an advantage. THE KEY ADVANTAGES OF THE INDIAN INDUSTRY ARE
India is the third largest producer of cotton with the largest area under cotton cultivation in the world. It has an edge in low cost cotton sourcing compared to other countries. Average wage rates in India are 50-60 per cent lower than that in developed countries, thus enabling India to benefit from global outsourcing trends in labour intensive businesses such as garments and home textiles Design and fashion capabilities are key strengths that will enable Indian players to strengthen their relationships with global retailers and score over their Chinese competitors.
Production facilities are available across the textile value chain, from spinning to garments manufacturing. The industry is investing in technology and increasing its capacities which should prove a major asset in the years to come. Large Indian players such as Arvind Mills, Welspun India, Alok Industries and Raymonds have established themselves as 'quality producers' in the global market. This recognition would further enable India to leverage its position among global retailers. India has gathered experience in terms of working with global brands and this should benefit Indian vendors.
1.4
TEXTILE EXPORTS STATISTICS
Financial Year
Textile Export US$ Millions
Total Exports US$ Millions 83535.95 103090.53 126262.68 143567.86 153018.22 17875.43
Percentage Textile 16.79% 16.99% 15.16% 13.62 12.10% 12.54%
of
2004-05 2005-06 2006-07 2007-08 2008-09 2009-2010
14026.72 16.79% 17520.07 19146.04 19558.53 18519.96 22418.00
The Indian textile industry has a significant presence in the Indian economy as well as in the international textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. The industry also contributes significantly to the world production of
textile fibres and yarns including jute. In the world textile scenario, it is the largest producer of jute, second largest producer of silk, third largest producer of cotton and cellulosic fibre\yarn and fifth largest producer of synthetic fibre\yarn. Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. The Government of India has also included new schemes in the Annual Plan for 2007-08 to provide a boost to the textile sector. These include schemes for Foreign Investment Promotion to attract foreign direct investment in textiles, clothing and machinery etc. ROLE OF COIMBATORE TEXTILE INDUSTRY Coimbatore is the second largest city after Chennai in the Indian state of Tamil Nadu and a major textile and engineering hub. It is a heavily industrialized city and a regional hub for textiles, manufacturing, software services, education and health care. The city has over 25,000 small, medium and large scale industries and 2 IT SEZs. Coimbatore is known as the "Manchester of South India" due to the presence of a flourishing textile industry. Known for its entrepreneurial spirit, Coimbatore is the administrative headquarters of the Coimbatore District. Coimbatore ranked 4th among the Indian cities for the investment climate and ranked 1st in consumer confidence index according to studies done by CII and Economic Times (ET) respectively. Textiles Coimbatore houses a large number of small and medium textile mills. It also has central textile research institutes like the Central Institute for Cotton Research (CICR)- Southern
Regional station and the Sardar Vallabhai Patel International School of Textiles and Management. The South Indian Textiles Research Association (SITRA) is also based in Coimbatore. The neighboring town of Tirupur is home to some of Asia’s largest garment manufacturing companies, exporting hosiery clothes worth more than 50,000 million.
CHAPTER – II COMPANY PROFILE 2.1 HISTORY AND GROETH OF THE COMPANY
Sri Ranga Vilas Spinning Mills Coimbatore is one of the oldest spinning mills in our country. The mill was taken over by the national textile corporation in 1973 as a public sector undertaking. The mill currently produces yarn if various counts and both cotton yarn and polyester yarn. The sales of the mill were about 24cores during 2005-2006. The mill has been identified as one of the viable mill by the NTC and has been choose for modernization. Financial analysis is an important concern for managers in all types of businesses. For companies that operate on relatively low profit margins, poor inventory management can seriously undermine the business. Sri Ranga Vilas Spinning Mills has cotton and polyester fibers as raw material and nearly 1180 items as stores materials. The total investment in these items by the year ending on march 2006 was 1.3 cores. The interest rate at working capital requires is around 16.3%. hence there is a need to reduce the capital located in investors. Sri Ranga Vilas Spinning Mills is situated in Coimbatore. This mill is currently producing various counts of yarns. It has about 42188 spindles. (Which is a popular measure of the capacity of the spinning mills). It operates in 3 shifts employing about 421 permanent workers. Sri Ranga Vilas Spinning Mills was established in 1941. This is one of the oldest mills started by the local people for manufacturing medium counts of yarn. Sri Ranga Vilas Spinning Ginning & Weaving Mills is a public sector company registered under Factories Acts 1948 and is located at Avinashi Road, Peelamadu, Coimbatore. The mill was under closure from 16-3-1969 to 15-1-1970 under the Industries Development and Regulation Act of 1951 and was subsequently nationalized with effect from 1-4-1974 under Textiles
Undertaking Nationalization Act 1947. Now the mill is one of the units of NTC ltd a subsidiary corporation of NTC ltd holding parent company New Delhi. The government of India controls the national textile corporation and it has over 119 mills over India. The mill runs its operations over 25 acre premises. It has basic operations like quality controls, costing, stores and cotton section. The capacity of the mill is 41299 spindles. The mill has been identified as one of the viable units by the NTC and funds are provided for modernization. The mill also plan for VRS for clerical staff because of the plan for computerization of procedures. The National Textile Corporation Limited (NTC) is a Central Public Sector Enterprise under the Ministry of Textiles which was incorporated in April 1968 for managing the affairs of sick textile undertakings, in the private sector, taken over by the Government. Starting with 16 mills in 1968, this number gradually rose to 103 by 1972-73. In the year 1974 all these units were nationalized under the Sick Textile Undertakings (Nationalization) Act 1974. The number of units increased to 119 by 1995. These 119 mills were controlled by NTC(HC) Ltd with the help of 9 subsidiary Corporations, with an authorized capital of Rs 10 cores which was raised from time to time and which is now Rs 5000 cores and the paid up share capital of the corporation is Rs 3062.16 cores as on 31.03.2010. BIFR approved 8 revival schemes for 8 erstwhile subsidiary companies of NTC and 1 revival scheme for 9th subsidiary company (not referred to BIFR then) was approved by GOI. Later, BIFR approved 2 Modified Revival Schemes 1st MRS-06 in the year 2006 and 2nd MS 08 in the year 2008. Looking to the reduced number of mills and in line with the contemporary industry’s trend all 9 subsidiary companies have been merged with NTC-HC making it into a single Company W.E.F. 01.04.2006.
NTC has so far closed 77 mills and has transferred 2 mills in the State of Pondicherry to the State Government of Pondicherry. NTC is to modernize/set up 24 (22+2) mills by itself through generation of funds from the sale of its surplus assets and 16 (18-2) mills are to be revived through Joint Venture route. NTC has modernized 18 mills so far and is in the process of setting up 3 Composite Textile Units of which one is an SEZ area. NTC would be setting up
1Technical Textile Unit and modernizing 2 more units taken out from the list of Joint Venture apart from going into Ginning & Garmenting by way of forward and backward integration to have a pressure in all components of the value chain. Joint Venture It was also decided to modernize 16 (18-2) mills through JV route by inducting private partners with NTC stake of 51%. In pursuance to the GOM decision dated 22.08.2007 NTC has finalized 3 parties namely M/s Alok Industries, M/s Pantaloon Retail India Ltd (consortium) and M/s Bhasker Industries Ltd (consortium) for 5 mills to be revived and run through Joint Venture .NTC has not transferred the ownership of the land in the arrangement but is only giving a right to use of the land to the Joint Venture Companies (JVC) in which NTC is the major shareholder with 51% stake with 5 out of 8 directors on the Board of JVC. Further NTC invited offers for making Joint Venture in respect of other 11 mills where MOU was signed but later reviewed and now in the process of cancellation. Further steps in respect of these units are being contemplated.
Indian Textile Plaza Indian Textile Plaza is under construction through NBCC at the land of Jehangir Textile Mills, Ahmadabad (a closed NTC mill) with facilities like Handloom & Handicrafts
Mall, Exhibition Hall, Convention Hall, Theater Complex, Textile/Handicraft Museum, Food Court, Children Plaza, and Youth & Women Training Center & City Plaza by NTC forming SPV with NBCC. An MOU has been signed with NBCC for construction of the Plaza where NTC will also have a devoted space to represent itself before the public. Modified Revival Scheme As directed by MOT and also the NTC Board, NTC is in the process of reviewing its revival scheme with the possibilities of expansion and backward & forward integration.
Sale of Assets (Land) Through E-Auctioning NTC for the first time in Indian history, sold its 2 prime lands of Mumbai through Auctioning, a fully transparent system, permitting parties to improve bids through reverse auction, and fetched record returns for both of them. The funds are to be utilized for the revival of the Company. Re-Engineering In order to rework and conserve energy (especially power) NTC has engaged 2 energy firms namely M/s MITCON Consultancy Services Ltd. and M/s BEC Energy Management Systems as Consultants initially to study and suggest measures for saving energy in all forms. Monitoring & Improving Performance of Modernized Mills M/S JPS Associates (P) Ltd., have been engaged as Consultants to observe short comings– suggest measures – monitor implementation for bringing about improvement through professional feedback on performance. 2.2. VISION AND MISSION
MISSION
To be a world class eco-friendly integrated textile company Catering primarily to the clothing needs of the nation through innovate ideas and technology. VISION Brand to be the nations clothier, be a national player providing 1. Clothing solutions to nations masses 2. Opportunity for the nation’s people to identify themselves with a national VALUES Functioning with transparency and accountability. Managing the corporation’s affairs with the best use of modern techniques and management practices.
?
? ?
Extending courtesy and understanding the needs of our clientele.
2.3 COMPANY PROFILE Name of the Company Established year : SRI RANGA VILLAS GS &W MILL. : 18.01.1922
Type of the Company Address of the Company
: Public Sector Undertaking : SRI RANGA VILLAS GS &W MILL. No 333, Peelamedu, Coimbatore – 641004.
General Manager Assistant Manager (HR) Bank Year of Registration License number Number of Workers Product Manufactured
: Mr. Chandramouli. : Mr. T. Ram Manohar. : Indian Overseas Bank : 1923 : 234 : 421 : Cotton carded yarn, combed yarn and Blended Yarn.
Phone Number
: 0422 – 2572251.
ACHIEVEMENTS/MILESTONES OF THE COMPANY NTC mobilized Rs. 2028 cores by private placement of bonds, redeemable on 5 years maturity. NTC paid Rs. 248.69 cores as OTS to 23 Financial Institutions/Banks under the Revival schemes.
1. The entire workers of the mills identified for closure and the surplus employees in the viable mills in addition to those employees who were desirous to go under MVRS in the various offices, were given MVRS at a cost of Rs. 2293.32 Cores. So far, 62297 employees have gone accepting MVRS. 2. The Company identified 77 mills as unviable and closed under the provisions of Industrial Disputes Act (I.D. Act), after following necessary procedure. 3. 40 mills are slated for revival – 24 directly by the Company and balance under joint venture partnership with private sector. 4. The Company has so far spent Rs. 964 cores for the modernization of 22 mills, out of a total of Rs. 1156 cores. 5. 18 of the mills have completed modernization. 6. Relocation of mills for modernization – BIFR approved relocation of 4 mills – one each at Achalpur (Maharashtra); Hassan (Karnataka); Ahmadabad (Gujarat); and Udaipur (Rajasthan). Setting up of these projects will transform the Company into an integrated textile company. 3 mills are composite mills which are relocation Projects and the spinning segment of the two projects i.e. Finlay at Achalpur, and New Minerva at Hassan are erected & Rajnagar at Ahmadabad would be erected by Oct.. 2010. 7. NTC has completed the process of revival of 5 joint venture companies and they have started the activities in a big way – one in the Aurangabad Textile Mills for garmenting and work-wear, other New City of Bombay Mfg. Mills Ltd. has set up a design studio, sampling and garmenting unit, hird India United at Mumbai has set up Denim unit and Apollo & Gold Mohur at Mumbai has started Readymade Garments Unit. 8. From Rs. 385 cores budgetary support for wages in the year 2001-02, there is no
budgetary support from the Govt. for the wages in the year 2009-10. NTC is generating internally the Resources for wages payment. 9. The Company has sold assets worth Rs. 6100 cores under the Revival Scheme. 10. The Company has paid Rs. 224 cores to EPF/ESI authority & other outstanding statutory liabilities. 11. Since NTC was left with less number of mills, merger of all the 9 subsidiaries became necessary Company i.e. 01.04.2006. 12. Net worth of the Company has become positive. 13. All the secured and most of the unsecured creditors have been paid off. 14. NTC has already paid full amount of Rs. 2028 cores on redemption of bonds and Rs. 785.60 cores as interest on these bonds. 15. The Company has paid Rs. 89 cores as 1% commission as and all the subsidiaries were merged with the Holding
Guarantee Commission to the Ministry of Textiles. 16. Presently 17 units of NTC are generating cash profit. OBJECTIVES OF THE COMPANY ? To achieve the turnover of Rs. 2014 Crs by the year 2014 & Rs. 2245 Crores by 2016-17; ? To expand the spinning capacity from existing level 6.40 Laces spindles to 12.68 Lac spindles and 338 looms to 736 looms by 2013-14; ? To revamp all its 92 showrooms; ? To increase the market share of yarn of NTC from existing 0.4% to 1% in the next 5 years;
? To improve the exports from the present Rs. 15 cr per annum to Rs. 50 cr by 2013-14. 2.4 PRODUCT PROFILE Product manufactured in Sri Ranga Villas Mill ltd The different product manufactured in Sri Ranga Villas Mill ltd is ? Cotton carded yarn ? Combed yarn ? Blended yarn ENTYCE and FINLAYS are popular brands of NTC. 2.5. MACHINE PROFILE SPINNING MACHINES Blow-Room comprising of automatic bale plucker, multi mixer, and feed arrangements *Chute-feed Cards with Auto-leveler, Lap feed Card, Chute Feed arrangements for Card, Comber with Ribbon Lap, Sliver Lap & Super Lap, Draw Frame – Double Delivery and single Delivery with Auto leveler, Speed Frame (Simplex), Ring Frame (all type & sizes) Non-Woven M/cs, Open End Spinning, Cone Winding, Assembly winder, Ring Doubler, Auto Coner, Two for One Twister (TFO) & Reeling Machine.
WEAVING MACHINES Rapier/Air-jet/Projectile Looms, Direct Warper, Automatic sectional Warper, Sizing and Warp Typing Machine. PROCESSING MACHINERY (FOR COTTON AND BLENDS)
Chainless Mercerizer, Auto & Hydrolic Jiggers, Yarn Dyeing Plant, 3-Bowl Padding Mangle, Drying Range – 24 Cylinder with padding Mangle, Rotary Printing Machine (including Polymerizer & Scraper washer), Loop Ager, Stenter (5 chambers and 6 chambers), Zero-Zero finish. TESTING EQUIPMENTS Testing Equipments for fiber testing, yarn testing, and fabric testing. QUALITY POLICY We at Sri Ranga Vilas ginning spinning & weaving mills are committed to enhance satisfaction of customers by manufacturing and supplying cotton and blended yarns as per their requirement in time. This achieved by ? Adapting promptly to the changes in the customer driven market. ? Implementing and reviewing Quality Management System periodically ? Involving employees at all levels for continual improvement. QUALITY OBJECTIVES ? To improve the machine utilization from the present level of 80% to 95% by September 2011.
? To improve the GMS/spindle [40s conversing] ? Cotton carded – from the present level of 90 to 100 by Sep 2011 ? Cotton combed – from the present level of 85 to 90 by Sep 2011 ? Pc counts – from the present level of 90 to 105 by Sep 2011
? To improve the yarn realization, i. ii. iii. Cotton carded – from the present level of 80% to 87% by Sep 2011
Cotton combed – from the present level of 68% to 72% by Sep 2011 Pc counts – from the present level of 94% to 95% by Sep 2011
? To reduce the HOK from the present level 36.29 to 30.54 by Sep 2011. ? To increase the sales turnover from the present level 24.26 crores to 36.00 crores by march 2011. ? To achieve U% of 52s pc, from the present level of 14% to 12% level by September 2011. ? To reduce the UKG from the present level 4.6 to 4.0 by sep 2011. ? To reduce the absenteeism from the present level 20% to 10% by sep 2011. ? To give yearly at least one man day need based training to all quality related employees. i) Company Employees Permanent workers: 421
Casual workers: 440 Clerical: 24 Women employees: 54 Office staff: 38
ii) Autonomy and Delegation of Financial Power All Powers As Delegated To a Mou Signing Schedule ‘A’ Company iii) Commitments/Assistance from the Government The Government agrees: 1. To assist NTC for clearances from various State Governments for sale of NTC land. 2. To take necessary steps to waive/write off the Loan payable and interest payable to MOT/GOI as on 31.03.2007. 3. To assist NTC for approval from the Cabinet regarding Modified Revival Scheme i.e MS-10.
2.6 ORGANIZATION CHART
General Manager
Factory manager Spinning master
Deputy Manager (Accountants) (FM)
Assistant Manager Cost
Manager (HR)
Spinning Master
Purchase Assistant S A GA Account s Cost Accountant HTK Cotton Assistan
Cotton Assistant ASM (MT) AS M (QC) ASM (SHIFT) STORE KEEPER Telephon e
Accounts Assistants
Time Keeper
PF/ESI Assistant SQC Wrapping Assistant Stenographer
Typist
Wrapping Boy
MT – Maintenance.
QC – Quality Control.
Drivers
GA – General Assistant.
Attenders
SQC -Supervisor Quality Control. SA – Sales Assistant.
ORGANIZATION CHART
Sh. K Ramachandran Pillai Chairman
Shri R. Poornalingam Independent Director
Shri Sujit Gulati Director (Govt. Nominee)
Shri Arun Ramanathan Special Director (Bifr)
Sh. Brijesh Kumar (Director)
Sh. D. N. Khanna (Director)
Shri R. K. Sharma Director
Shri Rakesh Kumar Sinha Director (Human Resources)
Dr Rajan Katoch Additional Secretary & Financial Advisor
CHAPTER - III FUNCTIONS OF EACH DEPARTMENT 3.1 FUNCTIONS OF EACH DEPARTMENT STORES DEPARTMENT
In Sri Ranga Vilas Spinning and Weaving Mills, the stores department is a separate building built for preserving material, spares and finished goods. It is functioning under the control of Spinning Manager (SM). The department’s main task is to store spare and stationary items needed by the undertaking and issue it at the time of need. One of the main functions of the stores department is to purchase the spares and stationary as per the requirement of the undertaking. For this the stores department must get the purchase indent which is a journal requisition letter sent by the required department with the sign of the factory manager to the store keeper. If the required spares are of low cost, the spares are purchased from the local market and then it is passed to the respective department. In case of high cost of spares, purchase committee that consist of Chairman, General Manager, Factory Manager, Accounts Manager, Engineer and stock keeper will take the decision
regarding the purchase. The high value spares are purchased by inviting quotations and quotations from at least three suppliers is must. The following are the procedures followed in the selection of quotations: Inviting the quotations 1. Receipt of quotations 2. Opening of quotation 3. Tabulation 4. Verification 5. Placing order
a) Inviting the quotation
Quotations are invited for the specified spares by sending enquiry from to the suppliers. b) Receipt of quotation Quotations from the suppliers are received till the due date. c) Opening of quotation After the due date quotations due opened. d) Tabulation Then these opened quotations are tabulated a lowest quotation basis. e) Verification After tabulation the quoted values rates are verified. f) Placing orders Purchase orders are made to the selected suppliers. This purchased spares are first quantitatively checked by the technical head. Then note called
goods receipt and inspection not is prepared and passed department for payment BINCARD
to accounts
Bin Card is a quantitative record showing receipt, issue and closing balance of particular items of stores. It is possible to know the stock position as each and every transaction of materials is entered into Bin Card with date. In Sri Ranga Vilas Mills there is a formal procedure for the issue of materials. Every department has to follow this procedure in procuring the materials. Firstly, the department requiring materials has to prepare a requisition slip in which the material needed, quality etc, are written. Then this requisition has to be signed by the
Spinning Manager and then it is passed to the stores department. Through this requisition slip the store keeper issue the requested list of materials to the department and these issues are noted in issue register. In order to exercise an efficient control over the stores department, the store keeper must prepare and maintain different registers. Following are the registers maintained in the stores department: 1. Purchase register 2. Issue register 3. Purchase order register 4. Stock register 5. Quotation register 6. L/R register GATE PASS NOTE
Any material or goods goes out from the mill is mentioned in this note. ? Returnable gate pass note If the goods or material sent for the service or repair it is mentioned in this note ? Non-returnable gate pass note If the goods or material sent to sales basis it is mentioned in this note.
STORE LEDGER Receipt issues and closing balance of every goods are mentioned in this ledger for monthly once.
PURCHASE DEPARTMENT
Every running business needs efficient purchase. In this NTC unit, the investment is made by the budget proposals fixed by the Government. The purchase may be of spare parts and Industrial goods. Purchase department consist of four types of purchase namely, ? Cash purchasing ? Credit purchasing ? Tender purchasing ? Contract based purchasing i. CASH PURCHASE
Cash purchase is a type of purchase in which made at the time of emergency with the minimum cost. For Example: The spare part containing the cost of 5000 Rupees, may be brought under the type of Cash purchase. ii. CREDIT PURCHASE The costly items are purchased through credit purchase. Foe Example : New machine with new technology is purchased under the credit purchase.
iii. TENDER PURCHASE The mill is send a letter to the parties who are the member in the mill to give quotation for the particular item before the due date. On the due date the quotations are opened and the parties who quoted lower rate and quality is best is selected. The goods/materials are purchased form the selected party. iv. CONTRACT BASED PURCHASE For one year the mill put contract with one company means that particular year the mil purchase with that company items only. CENTRAL PURCHASE COMMITTEE For all NTC mills there is a central purchasing committee located in the Head Office. If the purchase of an item cost is more than lacks, the unit mill has to ask permission from the Central purchase committee.
FUNCTIONS OF PURCHASE DEPARTMENT
i. PURCHASE REQUISITION SLIP It is the first function in the purchase department it is given by the supervisor to the Store Assistant. The Store Assistant gives it to the purchase assistant ii. PURCHASE ORDER Based on the purchase assistant the requisition slip the purchase assistant place the order for purchase.
PROCESS OF THE PURCHASING
Purchase requisition of Supervisor
Purchase requisition to the store assistant
Purchase requisition to the purchase manager
Purchase manager evaluates the requisition and choosing the method of purchase
Purchase requisition to the purchase assistant
Purchase assistant place the purchase order
COTTON SECTION
It is one the most important section in the mill. It purchase the raw materials required for the productions i. COTTON Cotton is mentioned as bales approximately. The weight of the bale is 165kgs to 180kgs. It is purchased from the cotton corporation of India(CCI) and from the MP state Industries corporations. Verities of the cotton ? BRAHMA BUNNY ? DCGH32 ? MCU5 ? H4
? MECH ii. FIBER ? It is means as metric tones approximately its weight is 425 – 446. ? It is purchased from INDROMA SYNTHETIC INDIA Ltd.
PRODUCTION DEPARTMENT
HIGHARCHY
Factory Manager
Spinning Master
ASM (MT)
ASM (QT)
ASM Shift
Store Keeper
SQC
Wrapping Assistant
Wrapping Boy
MANUFACTURING PROCESS
Mixing
Blow Room
Carding
Drawing
Combing
Simplex
Spinning
Winding
Packing
OPENER PROCESS The opener process is the first process carried on in the production of the cone yarn. During this process Viscose Staple Fibre (VSF) is put in to an opening machine, in order to start the production. Before this anti –static oil is sprayed on viscose in order to avoid the effect of static electricity from polyester and viscose. 0.18% of the total weight of the mixture of polyester and viscose is the amount of antistatic oil required. This oil is mixed with the water in the ratio 1:11 and is sprayed on the fibre and kept for a day before it is mixed and is passed to the next department. MIXING PROCESS The second step in the production process is called mixing. In this process Polyester Staple Fibre (PSF) is mixed with VSF in a predetermined proportion according to
the requirements of the yarn to be manufactured in that particular count. There are three varieties of mixing in this mill. They are as follows: 60s PV in 65:35 blend with yellow tinting. 45s PVin 65:35 Blend 50s PSF HT (100%) without tinting. In order to identify the count and mixing proportion, Polyester Staple Fibre is given a tint. Tinting helps in easy identification of counts. Different food colors, light green, yellow and pink which can be washed easily is used for tinting and is maintained until it is given to the weaving merchants. Mixing coolies or mixing attendants as per the requirements. About five mixing coolies are employed in this department per day and each of them has a work load of 850-kilo/day.
BLOW ROOM The loose mix collected from mixing department is charged to the blow room where they are toppled manually in order to get a homogenous blend of various ingredients of the mix, polyester and viscose. This toppled mix is then passed through the condenser into the tanker and through the pipes it is fed to the second blow room machineries. There are three structures in the blow room and there are two lines of blow room machineries. One is double structure and the other is single structure. The objective of this process is to open out thick masses of the new materials of finer pieces and to give a thorough blending of polyester and viscose. Certain amount of impurities of foreign market and metal particles, if any has to be extracted. The row materials are converted in to a sheet form and wound on a rod. This is called a Lap, T=the length of the lap and weight of the
each lap is determined. The length of the lap is 37 yards and standard weight is 13.5 Kg. A tolerance of plus or minus 300 gram is permitted. The duration for forming one lap is sixminutes approximately. CARDING PROCESS Carding is the heart of spinning process .The lap collected from the blow room is fed to the carding machines of the carding department. In these machines set form of laps are converted into silver form. Each lap is drafted 90 to 100 times and parallelization of fibre takes place. Here short fibres, if any are extracted and the fibres are straightened and parallelized in to uniform size to eliminate unevenness in the yarn thickness and to ensure uniform weight. Cards are collected to each count, according to the spin plan and the silver is collected from the carding machines count wise. Each silver has length of a 3000 meters and the time for producing 1 can of silver is 1:00 hours. There are about 50 carding machines running in this mill. Conventional cards have an average life of 50 years. DRAWING PROCESS In the drawing process card silver produced in the carding department is passed on to this department. Here homogenous blending takes place. The drawing process is of two types. Breaker head Finisher head BREAKER DRAWING
In this process 8 cans of silver is fed to one delivery of drawing machines and each of these 8 silvers are converted in to a single silver by blending and drafting and is located in 1 can, 8 doubling is taking place to form a single silver. Each drawing machine can deliver 16 cans. In total, with 8 can placed each side and collected in two cans. A maximum of 3000 yards can be collected in a single can after doubling. The product breaker head is breaker- drawing silver. FINISHER DRAWING Here 8 cans collected from the breaker head of drawing machines is again processed, in another head of drawing machines. After this processing. About 4000 yards are collected in a can. The silver collected from finisher drawing head is called finisher drawing silver. This is the end product drawing department is 16 deliveries. A drawing tender has to look after 6 deliveries.
SIMPLEX (SPEED FRAME) In this department the finisher drawing silver produced in the drawing department is fed to the simplex machine (120 cans LF 1400 speed frames). The silver is passed through the drafting zone 12 to 13 times. A certain amount of twist is imparted on the body of drafted material, which is called Rove .This Rove is wound on plastic bobbins having a package weight 7500 gm to kg. speed frame (simplex department has 8 simplex machines having 12020 spindles. SPINNING (RING FRAME)
In the spinning department bobbins that are brought from the simplex department are reeled on the ring frame reel and the Rove is drawn through the drafting zone. The main object of spinning, drafting, twisting and winding. Rove is drafted to a thinner form of yarn. It is drafted to 20 to 27 according to the count to be spun. Different counts can have different twist, which binds the fibre with one another. This is called TPI (Twist Per Inch). A yarn is wound on plastic tubes that are called ‘Cops’. Average yarn content on a cop is about 70 grams. These cops are taken in to the next department that is cone winding. CONE WINDING In this department yarn on cops is converted in to con form. In the cone department all types of defects in yarn is rectified and also yarn on cone will be defect free. According to the requirement of the market bigger cone of yarn are packed weighing 1.25 Kg each. A winder has to look after 15-30 runs according to count of the yarn. The full built cone of 1.25 kg is removed and collected by the winder and then it is stacked in the bins count wise in the packing department. The cone winding machinery has 120 spindles that are winding 120 cones at a time and it takes about 2.30 hours. This department has 8 cone winding machines and there by each machine requires 4 persons. CONE PACKING In this department the final product of yarn on cones are packed in polythene bags. One such bag contains 40 cones and the Net Weight of 1 bag is 50 Kg. They put necessary details like count, gross weight, month and year of packing, bag numbers in lot numbers. Then these bags are ready for dispatch to the market or depots. Altogether, there are 6 workers in this department.
HUMAN RESOURCE DEPARTMENT
The employees of an organization are precious and the backbone that plays a stupendous role in its development and productive activities. Its employees significantly influence the prosperity of the organization. Liberalization and globalization has created challenging opportunities to make its human resource competent enough to HRM department in the organization. Human Resource Management is an art and science of managing people who are engaged organizational in productive occupations. Human function that deals with issues Resource Management related to employees is the such as
compensation, hiring, performance management, organizational development, safety, wellness, benefits, employee motivation, communication, administration and training. Human Resource Management is the function within an organization that focuses on recruitment, management and provides direction for the people who work in the organization. Human resource management can also be performed by line managers. Human Resource Management is, no doubt, an outgrowth of the older process and approach. But it is much more than its parent disciplines – personnel management and behavioral science. Its approach is more comprehensive from beginning to end. Its emphasis is not only on production and productivity but also on quality of life. It seeks to achieve the fullest development of human resource and fullest possible socio- economic development. Maximum individual development, developing working relationship and effective utilization of human resources are the primary goals of human resource management. A healthy climate, characterized by the values of openness, enthusiasm, trust, mutuality and collaboration is essential for developing human resources. DEFINITION OF HUMAN RESOURCE MANAGEMENT According to Dale Yoder “ the management of human resource is viewed as a system in which participants seek to attain both individual and group goals”. PROCESS OF HUMAN RESOURCE MANAGEMENT i. Acquisition function: Acquisition process is concerned with securing and employing the people
possessing the required kind and level of human resources necessary to achieve the
organizational objectives. The acquisition function begins with planning. It also covers the function such as job analysis, human resources planning, recruitment, selection, placement, induction and internal mobility. ii. Development function: It is the process of improving, molding and changing the skills, knowledge, creative ability, aptitude and value. The development function can be viewed along three dimensions.
? Employee training - It is the process of imparting to the employees the
technical and operating skills and knowledge. It also includes changing the attitudes among workers.
? Management
development – It
is
primarily
concerned
with
knowledge
acquisition and the enhancement of an executive’s conceptual abilities.
? Career development – It is a continual effort to match long-term individual
and organizational needs. When human resources have been developed effectively, one can expect to have competent employee with up-to-date skills and knowledge. iii. Motivation function: The motivation function begins with the recognition that individuals are unique and that motivation techniques must reflect the needs of each individual. iv. Maintenance Function: The maintenance function is concerned with providing those working conditions that employees believe are necessary in order to maintain their
commitment to the organization.
FUNCTION OF HUMAN RESOURCE DEPARTMENT
A. Recruitment. B. Compensation. C. Labor laws. D. Training. E. Time Office Management. F. Social Responsibilities.
G. Welfare Activities.
RECRUITMENT It is public sector mill so they are recruiting people through following ways ? Employment Exchange ? By Conducting written exams ? By conducting Interview ? Casual worker regularization Scheme(720 days/3 years ) COMPENSATION ? Salary ? Under The Minimum Wages Act
? Salary date will be 7th of every month for permanent workers.
? Salary date for causal worker will be 10th of every month.
Gross Salary ? Basic (department) + DA(Vda + Fda) + Hra – detections = Gross salary
Salary detections ? Provident fund ? The Employees’ State Insurance ? Advance from the salary ? Other credit facilities Net salary Gross salary – salary detections = net salary ? Bonus under Payment of Bonus Act ? Allowances ? Advances ? Provident Fund (PF) i. 12% from the employee and 12% from the employer is calculated for the Pf ii. The current interest rate for provident fund is 8.33%
? Employees State Insurance (ESI) i. 1.75% from the Employee and 4.75 from the employer is calculated for the ESI ii. The minimum wage for the casual worker is Rs.184.00. it is fixed by the government on April- 2011 ? The minimum wage for the casual worker in the year of 2010 – 2011 is Rs.171. LABOR LAWS ? Factories Act, 1948. ? Payment of Wages Act, 1936 ? Minimum Wages Act, 1948 ? The Indian Trade Unions Act, 1926. ? The Employees’ State Insurance Act, 1948.
? The Employees’ Provident Fund Act, 1952.
TRAINING AND DEVELOPMENT ? Training is given to the employees when the new machinery installed means. ? Training given for the development of employees. ? Most of the training are in the form of On the Job Training. ? In this mill there is the on the job training is given to the workers
? Apprentice training and just in time training methods are mostly followed by this mill ? This mill is giving 15 days training for the new worker TIME OFFICE MANAGEMENT ? This system is followed for the attendance of the employees. ? Attendance is maintained by the Time keepers. ? Attendance is for all 3 shifts. ? Leave Policy. Attendance is calculated in two ways ? By employee token card and ? By Shift supervisors attendance. There are three shifts in this mill, each shifts attendance is maintained by the time keeper. Three shifts are SHIFT First shift Second shift Third shift IN TIME 7.00 Am 3.30 Pm 12.00Am OUT TIME 3.30 Pm 12.00 Am 7.00 Am
LEAVE POLICY
? Earned Leave. ? Owned Leave. ? Festival Holiday. ? Weekly Off. ? Sick Leave.
? Accident Leave.
HUMAN RESOURCE INFORMATION SYSTEM In this mill there is no existing human resource information system Reason for not implementing the HRIS in this mill ? The staffs are old people, their observation of information system is slow ? This makes double work to the HR manager in this mill. ? The staffs are experienced with the manual calculating methods. ? Suddenly they cannot adapt to the new information system.
FINANCE DEPARTMENT
This is the major department of the company. Finance department is located with the factory. It prepares different kinds of financial reports and gives information to management for decision-making purposes. Finance department prepares the Income statements, Balance sheet, Trail balance, Cash flows, Production report for the whole month, stock taking report yield comparison report etc. these all reports are helpful for the management to make production plan, financing decisions and other important matters. The head of the department in finance manager. He is a chartered accountant. HEIRARCHY
General Information
Bankers: State Bank of India, state Bank of Travancore Auditors: M/S Jacob & George (Chartered Accountants) Significant accounting policies Fixed assets and depreciation i. In the case of fixed assets acquired as a result of nationalization, the life of the assets for depreciations purpose has considered as if they were new. These assets have been taken at the value as then approved by the Board of Directors of the corporation. The assets acquired subsequently are stated at cost. ii. Depreciation on fixed assets is provided on the straight line method asper section 205 (2) (b) of the Companies act, 1956. iii. Depreciation has been provided for in accordance with circular number of 14 (9 h). File No.1/12/92-CL-U dated 20/12/1993 of the Government of India, Ministry of Law, Justice and Company affairs, Department of the Company Affairs, on the original cost of all the assets including the existing assets at the rates prescribed in the schedule XIV of the Companies Act, 1956, retaining the residual at 5 %. iv. For the fixed assets required after 01.04.1974 and whose actual cost does not exceed at Rs 500/-. Depreciation has been provided 20%. v. Depreciation of the amount capitalized subsequently on account of foreign exchange fluctuation is provided prospectively over the residual useful life of the asset. vi. Gains or losses on disposal of fixed assets are recognized in the profit and loss account.
Inventories Valuation of inventories is as follows: a. Stores , spares, dyes, chemicals and coal are at weighted average cost in respect of inventory (consumable stores/spare parts) the provisions is made as follows: Value of items held in and not moved for more than 5 years-50% Value of items held in stocks and not moved for more than 3 years-Nil. b. Raw materials at weighted average cost or net realizable value whichever is lower. c. Finished goods packed cloth and yarn at cost or net realizable value after making provisions for obsolescence, whichever is lower. d. Waste or net realizable value. e. Materials in process: - spinning and weaving in process loose yarn, yarn, cloth –in- process at lower cost or net realizable value. f. The unfinished job conversion contracts for yarn and cloth are recognized as work in process valued at contracted price less expenses still to be incurred by making ready for delivery. Investment a. Quoted value at lower cost or market value. b. Unquoted value at cost Debt or receivable
i.
Debt or receivables from private parties which are doubted of recovery or adjustment and outstanding for more than three years.
ii.
Debts or receivables from the sister concern into subsidiaries. Employees of the mill/Government department/ other PSUs.
Prior period expenses and income Expenses and income of prior years less than Rs 10000/- in each case has been charged or accounted in the current year itself. Repairs and maintenance Store consumptions, salaries and wages incurred on maintenance are charged to primary held on accounts. Carrying charge Carrying charge on cotton purchase has been accounted under administrative expense. Gratuity The gratuity liability in respect of existing employees has been calculated on actual valuation, based on February month earnings. Insurance claims Insurance claims arising out of fire accident, machinery break down, transit loss and other miscellaneous losses will be accounted only when the claim is admitted by the insurance and the claim voucher discharged by the company. Foreign currency liability
The foreign currency liability in respect of import of machinery, under differed payment guarantee arrangement through holding company, is revalued at the prevailing market rates as on the Balance sheet
The adjustment for the differences, if any in respect of: i. Principal amount is adjusted to the cost of machinery. ii. Interest accrued up to the date of balance sheet ids death within the profit and loss account. iii. Un accrued future interest is treated as current asset Foreign currency transaction The transactions in foreign exchange are accounted at exchange rate prevailing on the date of transaction. Any exchange gains or losses arising out of the subsequence fluctuation are accounted for in profit and loss account exempt loss relating to acquisition of assets. Leave with wages or salary provision Provision for leave with wages or salary is made for the number of days of the credit of the employee on date of balance sheet based on February month earnings. Expenditure on voluntary retirement scheme Expenditure incurred for implementation of voluntary retirement scheme is charged to profit and loss account in the year in which the employees relieved and the same is treated as an extra ordinary item.
QUALITY CONTROL DEPARTMENT
One of the achievements of the industrial revolution has been the ability of mass producing goods of uniform quality. In recent years, poor quality has been causing problems and an embarrassment to the industry owners. Quality control has, therefore, become highly relevant. Quality refers to the sum of the attributes or properties that describe a product. These are generally expressed in terms of specific product characteristics such as length, width, specific gravity etc. To be meaningful in an industrial sense, these characteristics must be qualitatively expressed in terms that can be objectively measured or observed. Systematic control of these factors is the quality control. One
benefit of quality is increased productivity. Increased productivity results in better profit and builds customer loyalty. Quality is the only weapon to fight competition. In Sri Ranga Vilas mills routine quality control is done in each department on a regular basis in order to ensure quality norms of the yarn. Quality of yarn is checked at different stages of production. Samples departments. The standard measure for calculating the quality of yarn is grains. 1 gram = 15.7grains at the end of production. 4.54 grams = 7000grains = 1 pound (1b) are taken from roving and spinning
VARIOUS STAGES OF QUALITY CONTROL SYSTEM A. Blow room B. Carding C. Drawing D. Comber E. Simples F. Spinning G. Cone winding H. Auto corner I. Cone packing BLOW ROOM ? Hank checking ? Lap weight checking ? Waste percentage checking ? Lap CV checking (yard to yard)
? Monthly once speed checking CARDING ? Hank checking ? Waste checking ? Speed checking ? Fire yard CV checking
DRAWINGS ? Hank checking ? A% checking ? U% checking ? Speed checking COMBER ? Hank checking ? Waste checking ? Speed checking ? Cleaning efficiency
? U% checking SIMPLEX ? Hank checking ? U% checking ? End process study ? Strength ? Machine audit SPINNING ? Speed checking ? End process study ? Shape study
CONE WINDING ? Rewinding ? End breaks study ? Cop breaks ? Machine audit ? Stop motion checking
? Cone weight checking AUTO CORNER ? Split test ? Idle (snap study) ? Speed checking ? Cone weight CONE PACKING ? Cone visual defect ? Cone weight ? Bag weight
MARKETING DEPARTMENT
Marketing department of this mill for the execution of orders as well as marketing of the products in foreign countries. The main objective of the department is to generate the
export business with quality products and better services as well as to provide efficient after sales services. DISTRIBUTION AND SELECTING TERMS The company exports are the major portion is yarn. In the local market yarn is sold directly to brokers who in turn sell it to other mills for further processing. Yarn is sold on cash basis. Total turnover of yarn is made on cash/credit basis. MANAGING MARKETING INFORMATION Marketing consist of people, equipment and procedures to get, sort, analyze, evaluate and distribute needed timely and accurate information. Internal record systems The basic information system used by marketing managers is the internal record system. It includes order to payment cycle, sales reporting system prices, inventory level etc. By receiving these information’s, managers can spot important opportunities and problems. The Sri Ranga Vilas Ginning, Spinning And Weaving Mill is maintaining its internal records by keeping order to payment cycle. In this system sales/marketing department keep order up-date total order quantity, balance quantity etc. Prepared invoice under the instruction of sales dept and goods are sent to their respective orders by special delivery. Every firm has maintained its marketing intelligence system for the feed back from customers and agents etc that what has been happening in the market.
MARKETING RESEARCH SYSTEMS Every manager is required to conduct marketing research, formal research on
specific problems and opportunities; they conduct a market survey and product preference test and a sales forecast. MARKET DEMAND In this Mill measures demand by adopting the following method: ? Sales representative/agent collect data of total yarn demand. ? Specific demands of particular count are determined and calculate the number of users of said product is calculated. Then total demand is calculated and Mill plans to get maximum share from the market demand. MARKETING MIX Marketing mix is the marketing task that the firms are to be required its objective in the target market. The marketing mix consists of every thing the firm can do to influence the demand for its product. The many possibilities can be collected into four groups of variables known as the “4p’s”. Product In this mill produces yarn and high quality fabric. Two types of yarn products 1- Cotton Yarn 2- Poly-cotton Yarn
PRICING
Pricing is the amount of money that customer have to pay to obtain the product. The price policy of the company should be in such a way that it should produce a reasonable profit for the company and satisfy the customer. There are two types of costs: ? Fixed cost ? Variable cost 1. Fixed cost Fixed cost is the costs, which remain always same whether, are produce large quantity. Therefore, companies always try to use there full capacity of production because with increase in production the fixed cost decreases. 2. Variable cost Per unit variable cost raises as the quantity produced decreases. Following factors are included in variable cost: Transportation Cost of material STRATEGIES IN PRICE FIXING There are two types of price fixing strategies ? Directly to customer ? Indirectly to customer 1. Directly to customer If they sell their product directly to the customer then they fix price in such a way Fixed cost + Variable cost + Desired profit 2. Indirectly to customer If company sells their products indirectly then they fix price in such a way Fixed cost+ Variable cost + Desired profit + Middle man’s commission
In this case the profit margin depends upon the quality and condition of the market. If the market is new then the price will be new to attract the customers and compete the existing competitors. PRICING PROCEDURES The NTC head office fix the price of the finished goods. This Mill has following procedure for exports Inquiry Customer inquiries are received from telex, fax and letter. They are directly sent for approval to CE and after approval sent to concerned department. Costing Costing sheets are prepared for CE is approval. In the absence of CE, department in charge approves price. If both are not available then section in charge is allowed to quote the price. Approval NTC gives the approval or may give other price to be offered. Contract review & check sheet Section in charge takes following steps before issuing a contract: ? Prepare contract review check sheet ? The requirements are adequately defined and involvement’s of production areas. ? In house/out side have the capability to meet the order requirements. After getting approval of costing and review of customer requirements, prices are quoted to customer for confirmation. After confirmation of prices by customer, sales contract is issued to the customer with complete detail of construction, width/size, price, quantity, delivery, payment terms etc. and the cloth order is sent to relevant department.
Dispatch o f goods Dispatch able goods detail along with samples received from folding department. Each section verifies quantity of goods to be dispatched, they intimate to S &D section to dispatch goods. Transportation Shipment & dispatch is responsible for all documentation and shipment of goods by road and sea. ISO department prepared management information system report.
PROMOTIONAL STRATEGIES The Sri Ranga Vilas mill has not any promotion point its products. Because the demand of their products in the world is very high. We can easily judge them from their work. Our export figure is varying high as compare to any individual company. SOURCES OF COMMUNICATION The Sri Ranga Vilas mill uses following sources of communication ? exhibition ? Personal visit to the customer ? Customer visit to the mill ? Fax, Telephone.
SALES DEPARTMENT
In sales department the yarn are dispatched along with the delivery note and sales, invoice to the dealer The functions of sales department are below PERFORM INVOICE It is sent to the parties who are selected along with the intimation letter. It includes the item name, name of the party, kgs, tax, packing charges, etc are mentioned INVOICE After the payment is received the invoice is given. It include the party name, mill name, invoice number, amount, etc are mentioned in this invoice Types of sales 1) Yarn sales, 2) Waste sales 3) Yarn sales There are three types of yarn sales is done by this mill namely ? Depot ? Direct ? Export
i. Depot The parties place the order in the NTC depot located at different places. The depot gives the order to the mill and collects the yarn and sold it to the parties ii. Direct sales Direct sales are cash based sales. The goods are delivered to the parties and the cash collected immediately. iii. Export sales The yarn is also sold to the other countries. For the exports sakes the NTC had to get approval from the government before the sales. The yarn is exported to all countries WASTE SALES Wastages is segregated from the various levels in production department are sold in a specified period. The wastage is sold through tender method. The details about the sales are sent to the NTC head office. SALES THROUGH TENDER The parties who are the member in this mill are sent a letter to sent a quotation before due date. On the due date, the tender quotations are opened. The party who coated
the maximum amount will be selected. The intimation letter is sent to that party and to the NTC head office.
3.1.1. ROLE OF EACH MANAGER ROLE OF PURCHASE MANGER
? The Purchasing Manager develops purchasing policies and procedures and controls the purchasing department budget. ? Manages day-to-day functioning of purchasing group. ? Reviews purchase orders to ensure adherence to quality and procedures. ? Ensures that re-ordering of stock is carried out on a daily basis as required to maintain adequate stock levels of parts for production. ? Understands assembly process thoroughly to ensure that the material is delivered just in time. ? Participates in the creation of forecasts, and relates those to production programs and stock required for the daily production round. ? Represents purchasing in discussions and strategies aimed at improving overall integration of purchasing, assets ? Participate in the development of specifications for equipment, products, or substitute materials. ? Reviewing the technical specifications for accuracy and completeness ? Taking decision purchase and purchasing methods.
ROLE OF HR MANGER
? Recruiting and placing the employees
? Maintaining Compensation for their employees. ? Following the Labor laws. ? Training the employees who have the low performance.
? Time Office Management. ? Social Responsibilities.
? Welfare Activities for the organization.
ROLE OF FINANCE DEPARTMENT
Following are the main functions of finance department ? To prepare monthly and half-yearly reports ? To keep the record of inventory and stock ? To maintain a liquid position ? To maintain adequate cash to run the operations of business ? To reconcile the bank statements ? To make payments to the suppliers ? To maintain debt and credit balances of the customers ? To deal with the sales tax and income tax departments
? Prepare profit and loss accounts & income statements ? Keep record for the payment of salaries
ROLE OF SALES DEPARTMENT
?
Maintaining the invoice reports
? Checking the product details while selling the product ? Deciding the method of the sales and type of sales
?
Sending sales report to the Finance department
3.1.2. SWOT ANALYSIS
STRENGTH ? In this company they are having a large number of workers. ? India is the largest exporter of cotton yarn. Here the final product of this concern is yarn. So this can be considered as a strength of the concern. WEAKNESS ? Most of the machines using in the company are very old. ? The employees are not appraised in time. ? No chance for younger people as the official staff of the organization. Most of them are very experienced in their own field. OPPORTUNITIES ? The textile industries have a very good future in the world market. THREATS
? Power failure may be happen. ? Accident may be happen. ? Strikes may happen in between employees & employer.
CHAPTER IV SUGGESTIONS AND CONCLUSION
4.1 SUGGESTIONS
?
If the SRV mill needs more concentration in Safety measures such as
providing mask and glass for the employees will be help full for their workers
?
The mill needs more concentration on cleaning the places like basic needs
of the employees ? Improvements in the motivation system will be helpful to avoid the
absenteeism of the employees in this mill ? There is some improvement needs in the employees salary increments in the
present situation. It may be helpful for the employees day to day needs on present.
4.2 CONCLUSION
This training period immensely beneficial as, I learnt practically all that I had been studying theoretically. It had given practical knowledge of how a job is done at work place. The intense training I underdone for 45days have made me aware of the various problems that surface in an organization. The training has also helped me to gain better understanding of the various departments and organization structure. The issues what I have observed in Sri Ranga Vilas Mills, Coimbatore.
doc_779750612.doc
AN INTERNSHIP TRAINING REPORT Submitted by
(ASHOK KUMAR. M) Register No: 108001109005
in partial fulfillment for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
in
MANAGEMENT STUDIES
INFO INSTITUTE OF ENGINEERING
COIMBATORE - 641 107 JULY 2011
INFO INSTITUTE OF ENGINEERING COIMBATORE -641 107
Department of Management Studies AN INTERNSHIP TRAINING REPORT
July 2011
This is to certify that the project entitled
A STUDY ON SRI RANGA VILAS GINNING, SPINNING AND WEAVING MILLS COIMBATORE
is the bonafide record of project work done by (ASHOK KUMAR. M)
Register No: 108001109005)
of MBA (Management Studies) during the year 2010-2011.
_________________
_________________________
Project Guide
Head of the Department
Submitted for the Project Viva-Voce examination held on ______________
___________________
____________________
Internal Examiner
External Examiner
DECLARATION
I affirm that the project work titled ‘A STUDY ON SRI RANGA VILAS GINNING, SPINNING SAND WEAVING MILLS, COIMBATORE’ being submitted in partial fulfillment for the award of MBA is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other University.
Signature of the Candidate ASHOK KUMAR. M 108001109005
I certify that the declaration made above by the candidate is true
Signature of the Guide, G.B. SABARI RAJAN, Asst. Professor Dept. of Management Studies
ACKNOWLEDGEMENT
My sincere thanks to all the Trustees of Info Institute of Engineering for extending constant support for the completion of the record work. I would like to express my sincere gratitude to our beloved Secretary Mrs.CHITRAMANOHAR for having provided me with the best facilities & infrastructure for the completion of the Record. I would express my sincere gratitude to our beloved Principal
Dr.V.PALANISAMY, Info Institute of Engineering, for his continuous encouragement. I also express my profound thanks to Dr.HEMABHALAKRISHNAN, Head of the Department-I/c, Management Studies, who has been a source of the inspiration for the successful completion of the practical and record in time. I express my due gratitude to my spirit and, Mr. G.B. SABARI RAJAN, Assistant Professor, Department of Management Studies, who gave me the guidelines and continuous support to complete this report in time. My sincere thanks to the Faculty members, Department of Management Studies, for extending constant support throughout the Project work. Finally, my great thanks go to my parents & my friends for co-operating to make this Record successful and all my friends who have contributed directly to bring out this Record.
CONTENTS
TITLE CHAPTER I INTRODUCTION TO INDUSTRY PROFILE 1.1 About the Industry in World Market 1.2 About the industry in Indian Market 1.3 Growth of the industry in India 1.4 Role of the industry in Coimbatore II COMPANY PROFILE 2.1 History and Growth 2.2 Vision, Mission 2.2 Company Profile 2.4 Product Profile 2.5 Organization Chart III FUNCTIONS OF EACH DEPARTMENT 3.1 Functions of each department 3.1.1 Role of each Manager IV SUGGESTIONS AND CONCLUSION 4.1 Suggestion 4.2 Conclusion 63 64 23 60 9 13 14 17 21 1 2 3 7 PAGE NO
CHAPTER- I
INTRODUCTION TO INDUSTRY PROFILE
1. INTRODUCTION The textile industry witnessed a unique development that started in Britain, since the spinning and weaving machines have been invented here. In recent years, all over the world, there has been high production of wool, cotton and silk and this only contributed to boosting the world economy. With the launch of textile industry in the UK, the textile production was passed over to Europe and North America, in the 19th century, after mechanization was also introduced in these areas. In time, other countries especially in Asia have started to invest more in industrializing their economies and the textile sector gained more ground. Thus, Japan, India, Hong Kong and China were eventually leading producers, since due labor force was cheap.
1.1 ABOUT THE INDUSTRY IN WORLD MARKET The industrial revolution in the 18th century acted as an incentive for the growth of textile industry, and mass production of clothing was turned into mainstream industry. Later, in the 20th century textile industry gained a rather bad reputation since the labor force was made of immigrants working in illegal "sweat shops", workers being paid less than minimum wages. While globalization has contributed to outsourcing the manufacturing process, in those areas where textile trade was common, the focus was later changed to the whiter collars, and so the industry of fashion design, and fashion modeling have began to flourish. Also known in the United Kingdom and Australia as the Rag Trade, the Textile Industry is
concerned with designing and manufacturing clothing items, together with distributing using textiles. Now the global textile market is worth more than $400, according to present statistics, even if the industry was faced with fierce competition coming from other industries, but also opportunities. It is estimated that between 2002 and 2010, the global textile production is likely to grow by 25 percent, and the region that is going to bring a major contribution to this growth is Asia. The one that has taken many steps forward to help the textile industry grow is The World Trade Organization (WTO). In the year 1995, adopted Agreement on Textiles and Clothing (ATC), according to which, all quotas on textile and clothing will be removed for WTO member countries. Despite this and the high tariffs imposed, as well as the quantitative restrictions, exports of textiles coming from developing countries are still growing. 1.2 ABOUT THE INDUSTRY IN INDIAN MARKET The Indian textile industry is one of the largest in the world with a massive raw material and textiles manufacturing base. Our economy is largely dependent on the textile manufacturing and trade in addition to other major industries. About 27% of the foreign exchange earnings are on account of export of textiles and clothing alone. The textiles and clothing sector contributes about 14% to the industrial production and 3% to the gross domestic product of the country. Around 8% of the total excise revenue collection is contributed by the textile industry. So much so, the textile industry accounts for as large as 21% of the total employment generated in the economy. Around 35 million people are directly employed in the textile manufacturing activities. Indirect employment including the
manpower engaged in agricultural based raw-material production like cotton and related trade and handling could be stated to be around another 60 million. A textile is the largest single industry in India (and amongst the biggest in the world), accounting for about 20% of the total industrial production. It provides direct employment to around 20 million people. Textile and clothing exports account for one-third of the total value of exports from the country. There are 1,227 textile mills with a spinning capacity of about 29 million spindles. While yarn is mostly produced in the mills, fabrics are produced in the power loom and handloom sectors as well. The Indian textile industry continues to be predominantly based on cotton, with about 65% of raw materials consumed being cotton. The yearly output of cotton cloth was about 12.8 billion m (about 42 billion ft). The manufacture of jute products (1.1 million metric tons) ranks next in importance to cotton weaving. Textile is one of India’s oldest industries and has a formidable presence in the national economy inasmuch as it contributes to about 14 per cent of manufacturing value-addition, accounts for around one-third of our gross export earnings and provides gainful employment to millions of people. They include cotton and jute growers, artisans and weavers who are engaged in the organized as well as decentralized and household sectors spread across the entire country. 1.3. GROWTH OF TEXTILE INDUSTRY India has already completed more than 50 years of its independence. The analysis of the growth pattern of different segment of the industry during the last five decades of post independence era reveals that the growth of the industry during the first two decades after the independence had been gradual, though lower and growth had been considerably slower during the third decade. The growth thereafter picked up significantly during the fourth decade in each and every segment of the industry. The peak level of its growth has however
been reached during the fifth decade i.e., the last ten years and more particularly in the 90s. The Textile Policy of 1985 and Economic Policy of 1991 focusing in the direction of liberalization of economy and trade had in fact accelerated the growth in 1990s. The spinning spearheaded the growth during this period and man-made fibre industry in the organized sector and decentralized weaving sector. ROLE OF INDIAN TEXTILE INDUSTRY IN THE ECONOMY Textile industry plays a significant role in the economy. The Indian textile industry is one of the largest and most important sectors in the economy in terms of output, foreign exchange earnings and employment in India. It contributes 20 per cent of industrial production, 9 per cent of excise collections, 18 per cent of employment in industrial sector, nearly 20 per cent to the country’s total export earnings and 4 per cent ton the GDP. The sector employs nearly 35 million people and is the second highest employer in the country. The textile sector also has a direct link with the rural economy and performance of major fibre crops and crafts such as cotton, wool, silk, handicrafts and handlooms, which employ millions of farmers and crafts persons in rural and semi-urban areas. It has been estimated that one out of every six households in the country depends directly or indirectly on this sector. India has several advantages in the textile sector, including abundant availability of raw material and labour. It is the second largest player in the world cotton trade. It has the largest cotton acreage, of about nine million hectares and is the third largest producer of cotton fibre in the world. It ranks fourth in terms of staple fibre production and fourth in polyester yarn production. The textile industry is also labour intensive, thus India has an advantage. THE KEY ADVANTAGES OF THE INDIAN INDUSTRY ARE
India is the third largest producer of cotton with the largest area under cotton cultivation in the world. It has an edge in low cost cotton sourcing compared to other countries. Average wage rates in India are 50-60 per cent lower than that in developed countries, thus enabling India to benefit from global outsourcing trends in labour intensive businesses such as garments and home textiles Design and fashion capabilities are key strengths that will enable Indian players to strengthen their relationships with global retailers and score over their Chinese competitors.
Production facilities are available across the textile value chain, from spinning to garments manufacturing. The industry is investing in technology and increasing its capacities which should prove a major asset in the years to come. Large Indian players such as Arvind Mills, Welspun India, Alok Industries and Raymonds have established themselves as 'quality producers' in the global market. This recognition would further enable India to leverage its position among global retailers. India has gathered experience in terms of working with global brands and this should benefit Indian vendors.
1.4
TEXTILE EXPORTS STATISTICS
Financial Year
Textile Export US$ Millions
Total Exports US$ Millions 83535.95 103090.53 126262.68 143567.86 153018.22 17875.43
Percentage Textile 16.79% 16.99% 15.16% 13.62 12.10% 12.54%
of
2004-05 2005-06 2006-07 2007-08 2008-09 2009-2010
14026.72 16.79% 17520.07 19146.04 19558.53 18519.96 22418.00
The Indian textile industry has a significant presence in the Indian economy as well as in the international textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. The industry also contributes significantly to the world production of
textile fibres and yarns including jute. In the world textile scenario, it is the largest producer of jute, second largest producer of silk, third largest producer of cotton and cellulosic fibre\yarn and fifth largest producer of synthetic fibre\yarn. Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. The Government of India has also included new schemes in the Annual Plan for 2007-08 to provide a boost to the textile sector. These include schemes for Foreign Investment Promotion to attract foreign direct investment in textiles, clothing and machinery etc. ROLE OF COIMBATORE TEXTILE INDUSTRY Coimbatore is the second largest city after Chennai in the Indian state of Tamil Nadu and a major textile and engineering hub. It is a heavily industrialized city and a regional hub for textiles, manufacturing, software services, education and health care. The city has over 25,000 small, medium and large scale industries and 2 IT SEZs. Coimbatore is known as the "Manchester of South India" due to the presence of a flourishing textile industry. Known for its entrepreneurial spirit, Coimbatore is the administrative headquarters of the Coimbatore District. Coimbatore ranked 4th among the Indian cities for the investment climate and ranked 1st in consumer confidence index according to studies done by CII and Economic Times (ET) respectively. Textiles Coimbatore houses a large number of small and medium textile mills. It also has central textile research institutes like the Central Institute for Cotton Research (CICR)- Southern
Regional station and the Sardar Vallabhai Patel International School of Textiles and Management. The South Indian Textiles Research Association (SITRA) is also based in Coimbatore. The neighboring town of Tirupur is home to some of Asia’s largest garment manufacturing companies, exporting hosiery clothes worth more than 50,000 million.
CHAPTER – II COMPANY PROFILE 2.1 HISTORY AND GROETH OF THE COMPANY
Sri Ranga Vilas Spinning Mills Coimbatore is one of the oldest spinning mills in our country. The mill was taken over by the national textile corporation in 1973 as a public sector undertaking. The mill currently produces yarn if various counts and both cotton yarn and polyester yarn. The sales of the mill were about 24cores during 2005-2006. The mill has been identified as one of the viable mill by the NTC and has been choose for modernization. Financial analysis is an important concern for managers in all types of businesses. For companies that operate on relatively low profit margins, poor inventory management can seriously undermine the business. Sri Ranga Vilas Spinning Mills has cotton and polyester fibers as raw material and nearly 1180 items as stores materials. The total investment in these items by the year ending on march 2006 was 1.3 cores. The interest rate at working capital requires is around 16.3%. hence there is a need to reduce the capital located in investors. Sri Ranga Vilas Spinning Mills is situated in Coimbatore. This mill is currently producing various counts of yarns. It has about 42188 spindles. (Which is a popular measure of the capacity of the spinning mills). It operates in 3 shifts employing about 421 permanent workers. Sri Ranga Vilas Spinning Mills was established in 1941. This is one of the oldest mills started by the local people for manufacturing medium counts of yarn. Sri Ranga Vilas Spinning Ginning & Weaving Mills is a public sector company registered under Factories Acts 1948 and is located at Avinashi Road, Peelamadu, Coimbatore. The mill was under closure from 16-3-1969 to 15-1-1970 under the Industries Development and Regulation Act of 1951 and was subsequently nationalized with effect from 1-4-1974 under Textiles
Undertaking Nationalization Act 1947. Now the mill is one of the units of NTC ltd a subsidiary corporation of NTC ltd holding parent company New Delhi. The government of India controls the national textile corporation and it has over 119 mills over India. The mill runs its operations over 25 acre premises. It has basic operations like quality controls, costing, stores and cotton section. The capacity of the mill is 41299 spindles. The mill has been identified as one of the viable units by the NTC and funds are provided for modernization. The mill also plan for VRS for clerical staff because of the plan for computerization of procedures. The National Textile Corporation Limited (NTC) is a Central Public Sector Enterprise under the Ministry of Textiles which was incorporated in April 1968 for managing the affairs of sick textile undertakings, in the private sector, taken over by the Government. Starting with 16 mills in 1968, this number gradually rose to 103 by 1972-73. In the year 1974 all these units were nationalized under the Sick Textile Undertakings (Nationalization) Act 1974. The number of units increased to 119 by 1995. These 119 mills were controlled by NTC(HC) Ltd with the help of 9 subsidiary Corporations, with an authorized capital of Rs 10 cores which was raised from time to time and which is now Rs 5000 cores and the paid up share capital of the corporation is Rs 3062.16 cores as on 31.03.2010. BIFR approved 8 revival schemes for 8 erstwhile subsidiary companies of NTC and 1 revival scheme for 9th subsidiary company (not referred to BIFR then) was approved by GOI. Later, BIFR approved 2 Modified Revival Schemes 1st MRS-06 in the year 2006 and 2nd MS 08 in the year 2008. Looking to the reduced number of mills and in line with the contemporary industry’s trend all 9 subsidiary companies have been merged with NTC-HC making it into a single Company W.E.F. 01.04.2006.
NTC has so far closed 77 mills and has transferred 2 mills in the State of Pondicherry to the State Government of Pondicherry. NTC is to modernize/set up 24 (22+2) mills by itself through generation of funds from the sale of its surplus assets and 16 (18-2) mills are to be revived through Joint Venture route. NTC has modernized 18 mills so far and is in the process of setting up 3 Composite Textile Units of which one is an SEZ area. NTC would be setting up
1Technical Textile Unit and modernizing 2 more units taken out from the list of Joint Venture apart from going into Ginning & Garmenting by way of forward and backward integration to have a pressure in all components of the value chain. Joint Venture It was also decided to modernize 16 (18-2) mills through JV route by inducting private partners with NTC stake of 51%. In pursuance to the GOM decision dated 22.08.2007 NTC has finalized 3 parties namely M/s Alok Industries, M/s Pantaloon Retail India Ltd (consortium) and M/s Bhasker Industries Ltd (consortium) for 5 mills to be revived and run through Joint Venture .NTC has not transferred the ownership of the land in the arrangement but is only giving a right to use of the land to the Joint Venture Companies (JVC) in which NTC is the major shareholder with 51% stake with 5 out of 8 directors on the Board of JVC. Further NTC invited offers for making Joint Venture in respect of other 11 mills where MOU was signed but later reviewed and now in the process of cancellation. Further steps in respect of these units are being contemplated.
Indian Textile Plaza Indian Textile Plaza is under construction through NBCC at the land of Jehangir Textile Mills, Ahmadabad (a closed NTC mill) with facilities like Handloom & Handicrafts
Mall, Exhibition Hall, Convention Hall, Theater Complex, Textile/Handicraft Museum, Food Court, Children Plaza, and Youth & Women Training Center & City Plaza by NTC forming SPV with NBCC. An MOU has been signed with NBCC for construction of the Plaza where NTC will also have a devoted space to represent itself before the public. Modified Revival Scheme As directed by MOT and also the NTC Board, NTC is in the process of reviewing its revival scheme with the possibilities of expansion and backward & forward integration.
Sale of Assets (Land) Through E-Auctioning NTC for the first time in Indian history, sold its 2 prime lands of Mumbai through Auctioning, a fully transparent system, permitting parties to improve bids through reverse auction, and fetched record returns for both of them. The funds are to be utilized for the revival of the Company. Re-Engineering In order to rework and conserve energy (especially power) NTC has engaged 2 energy firms namely M/s MITCON Consultancy Services Ltd. and M/s BEC Energy Management Systems as Consultants initially to study and suggest measures for saving energy in all forms. Monitoring & Improving Performance of Modernized Mills M/S JPS Associates (P) Ltd., have been engaged as Consultants to observe short comings– suggest measures – monitor implementation for bringing about improvement through professional feedback on performance. 2.2. VISION AND MISSION
MISSION
To be a world class eco-friendly integrated textile company Catering primarily to the clothing needs of the nation through innovate ideas and technology. VISION Brand to be the nations clothier, be a national player providing 1. Clothing solutions to nations masses 2. Opportunity for the nation’s people to identify themselves with a national VALUES Functioning with transparency and accountability. Managing the corporation’s affairs with the best use of modern techniques and management practices.
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Extending courtesy and understanding the needs of our clientele.
2.3 COMPANY PROFILE Name of the Company Established year : SRI RANGA VILLAS GS &W MILL. : 18.01.1922
Type of the Company Address of the Company
: Public Sector Undertaking : SRI RANGA VILLAS GS &W MILL. No 333, Peelamedu, Coimbatore – 641004.
General Manager Assistant Manager (HR) Bank Year of Registration License number Number of Workers Product Manufactured
: Mr. Chandramouli. : Mr. T. Ram Manohar. : Indian Overseas Bank : 1923 : 234 : 421 : Cotton carded yarn, combed yarn and Blended Yarn.
Phone Number
: 0422 – 2572251.
ACHIEVEMENTS/MILESTONES OF THE COMPANY NTC mobilized Rs. 2028 cores by private placement of bonds, redeemable on 5 years maturity. NTC paid Rs. 248.69 cores as OTS to 23 Financial Institutions/Banks under the Revival schemes.
1. The entire workers of the mills identified for closure and the surplus employees in the viable mills in addition to those employees who were desirous to go under MVRS in the various offices, were given MVRS at a cost of Rs. 2293.32 Cores. So far, 62297 employees have gone accepting MVRS. 2. The Company identified 77 mills as unviable and closed under the provisions of Industrial Disputes Act (I.D. Act), after following necessary procedure. 3. 40 mills are slated for revival – 24 directly by the Company and balance under joint venture partnership with private sector. 4. The Company has so far spent Rs. 964 cores for the modernization of 22 mills, out of a total of Rs. 1156 cores. 5. 18 of the mills have completed modernization. 6. Relocation of mills for modernization – BIFR approved relocation of 4 mills – one each at Achalpur (Maharashtra); Hassan (Karnataka); Ahmadabad (Gujarat); and Udaipur (Rajasthan). Setting up of these projects will transform the Company into an integrated textile company. 3 mills are composite mills which are relocation Projects and the spinning segment of the two projects i.e. Finlay at Achalpur, and New Minerva at Hassan are erected & Rajnagar at Ahmadabad would be erected by Oct.. 2010. 7. NTC has completed the process of revival of 5 joint venture companies and they have started the activities in a big way – one in the Aurangabad Textile Mills for garmenting and work-wear, other New City of Bombay Mfg. Mills Ltd. has set up a design studio, sampling and garmenting unit, hird India United at Mumbai has set up Denim unit and Apollo & Gold Mohur at Mumbai has started Readymade Garments Unit. 8. From Rs. 385 cores budgetary support for wages in the year 2001-02, there is no
budgetary support from the Govt. for the wages in the year 2009-10. NTC is generating internally the Resources for wages payment. 9. The Company has sold assets worth Rs. 6100 cores under the Revival Scheme. 10. The Company has paid Rs. 224 cores to EPF/ESI authority & other outstanding statutory liabilities. 11. Since NTC was left with less number of mills, merger of all the 9 subsidiaries became necessary Company i.e. 01.04.2006. 12. Net worth of the Company has become positive. 13. All the secured and most of the unsecured creditors have been paid off. 14. NTC has already paid full amount of Rs. 2028 cores on redemption of bonds and Rs. 785.60 cores as interest on these bonds. 15. The Company has paid Rs. 89 cores as 1% commission as and all the subsidiaries were merged with the Holding
Guarantee Commission to the Ministry of Textiles. 16. Presently 17 units of NTC are generating cash profit. OBJECTIVES OF THE COMPANY ? To achieve the turnover of Rs. 2014 Crs by the year 2014 & Rs. 2245 Crores by 2016-17; ? To expand the spinning capacity from existing level 6.40 Laces spindles to 12.68 Lac spindles and 338 looms to 736 looms by 2013-14; ? To revamp all its 92 showrooms; ? To increase the market share of yarn of NTC from existing 0.4% to 1% in the next 5 years;
? To improve the exports from the present Rs. 15 cr per annum to Rs. 50 cr by 2013-14. 2.4 PRODUCT PROFILE Product manufactured in Sri Ranga Villas Mill ltd The different product manufactured in Sri Ranga Villas Mill ltd is ? Cotton carded yarn ? Combed yarn ? Blended yarn ENTYCE and FINLAYS are popular brands of NTC. 2.5. MACHINE PROFILE SPINNING MACHINES Blow-Room comprising of automatic bale plucker, multi mixer, and feed arrangements *Chute-feed Cards with Auto-leveler, Lap feed Card, Chute Feed arrangements for Card, Comber with Ribbon Lap, Sliver Lap & Super Lap, Draw Frame – Double Delivery and single Delivery with Auto leveler, Speed Frame (Simplex), Ring Frame (all type & sizes) Non-Woven M/cs, Open End Spinning, Cone Winding, Assembly winder, Ring Doubler, Auto Coner, Two for One Twister (TFO) & Reeling Machine.
WEAVING MACHINES Rapier/Air-jet/Projectile Looms, Direct Warper, Automatic sectional Warper, Sizing and Warp Typing Machine. PROCESSING MACHINERY (FOR COTTON AND BLENDS)
Chainless Mercerizer, Auto & Hydrolic Jiggers, Yarn Dyeing Plant, 3-Bowl Padding Mangle, Drying Range – 24 Cylinder with padding Mangle, Rotary Printing Machine (including Polymerizer & Scraper washer), Loop Ager, Stenter (5 chambers and 6 chambers), Zero-Zero finish. TESTING EQUIPMENTS Testing Equipments for fiber testing, yarn testing, and fabric testing. QUALITY POLICY We at Sri Ranga Vilas ginning spinning & weaving mills are committed to enhance satisfaction of customers by manufacturing and supplying cotton and blended yarns as per their requirement in time. This achieved by ? Adapting promptly to the changes in the customer driven market. ? Implementing and reviewing Quality Management System periodically ? Involving employees at all levels for continual improvement. QUALITY OBJECTIVES ? To improve the machine utilization from the present level of 80% to 95% by September 2011.
? To improve the GMS/spindle [40s conversing] ? Cotton carded – from the present level of 90 to 100 by Sep 2011 ? Cotton combed – from the present level of 85 to 90 by Sep 2011 ? Pc counts – from the present level of 90 to 105 by Sep 2011
? To improve the yarn realization, i. ii. iii. Cotton carded – from the present level of 80% to 87% by Sep 2011
Cotton combed – from the present level of 68% to 72% by Sep 2011 Pc counts – from the present level of 94% to 95% by Sep 2011
? To reduce the HOK from the present level 36.29 to 30.54 by Sep 2011. ? To increase the sales turnover from the present level 24.26 crores to 36.00 crores by march 2011. ? To achieve U% of 52s pc, from the present level of 14% to 12% level by September 2011. ? To reduce the UKG from the present level 4.6 to 4.0 by sep 2011. ? To reduce the absenteeism from the present level 20% to 10% by sep 2011. ? To give yearly at least one man day need based training to all quality related employees. i) Company Employees Permanent workers: 421
Casual workers: 440 Clerical: 24 Women employees: 54 Office staff: 38
ii) Autonomy and Delegation of Financial Power All Powers As Delegated To a Mou Signing Schedule ‘A’ Company iii) Commitments/Assistance from the Government The Government agrees: 1. To assist NTC for clearances from various State Governments for sale of NTC land. 2. To take necessary steps to waive/write off the Loan payable and interest payable to MOT/GOI as on 31.03.2007. 3. To assist NTC for approval from the Cabinet regarding Modified Revival Scheme i.e MS-10.
2.6 ORGANIZATION CHART
General Manager
Factory manager Spinning master
Deputy Manager (Accountants) (FM)
Assistant Manager Cost
Manager (HR)
Spinning Master
Purchase Assistant S A GA Account s Cost Accountant HTK Cotton Assistan
Cotton Assistant ASM (MT) AS M (QC) ASM (SHIFT) STORE KEEPER Telephon e
Accounts Assistants
Time Keeper
PF/ESI Assistant SQC Wrapping Assistant Stenographer
Typist
Wrapping Boy
MT – Maintenance.
QC – Quality Control.
Drivers
GA – General Assistant.
Attenders
SQC -Supervisor Quality Control. SA – Sales Assistant.
ORGANIZATION CHART
Sh. K Ramachandran Pillai Chairman
Shri R. Poornalingam Independent Director
Shri Sujit Gulati Director (Govt. Nominee)
Shri Arun Ramanathan Special Director (Bifr)
Sh. Brijesh Kumar (Director)
Sh. D. N. Khanna (Director)
Shri R. K. Sharma Director
Shri Rakesh Kumar Sinha Director (Human Resources)
Dr Rajan Katoch Additional Secretary & Financial Advisor
CHAPTER - III FUNCTIONS OF EACH DEPARTMENT 3.1 FUNCTIONS OF EACH DEPARTMENT STORES DEPARTMENT
In Sri Ranga Vilas Spinning and Weaving Mills, the stores department is a separate building built for preserving material, spares and finished goods. It is functioning under the control of Spinning Manager (SM). The department’s main task is to store spare and stationary items needed by the undertaking and issue it at the time of need. One of the main functions of the stores department is to purchase the spares and stationary as per the requirement of the undertaking. For this the stores department must get the purchase indent which is a journal requisition letter sent by the required department with the sign of the factory manager to the store keeper. If the required spares are of low cost, the spares are purchased from the local market and then it is passed to the respective department. In case of high cost of spares, purchase committee that consist of Chairman, General Manager, Factory Manager, Accounts Manager, Engineer and stock keeper will take the decision
regarding the purchase. The high value spares are purchased by inviting quotations and quotations from at least three suppliers is must. The following are the procedures followed in the selection of quotations: Inviting the quotations 1. Receipt of quotations 2. Opening of quotation 3. Tabulation 4. Verification 5. Placing order
a) Inviting the quotation
Quotations are invited for the specified spares by sending enquiry from to the suppliers. b) Receipt of quotation Quotations from the suppliers are received till the due date. c) Opening of quotation After the due date quotations due opened. d) Tabulation Then these opened quotations are tabulated a lowest quotation basis. e) Verification After tabulation the quoted values rates are verified. f) Placing orders Purchase orders are made to the selected suppliers. This purchased spares are first quantitatively checked by the technical head. Then note called
goods receipt and inspection not is prepared and passed department for payment BINCARD
to accounts
Bin Card is a quantitative record showing receipt, issue and closing balance of particular items of stores. It is possible to know the stock position as each and every transaction of materials is entered into Bin Card with date. In Sri Ranga Vilas Mills there is a formal procedure for the issue of materials. Every department has to follow this procedure in procuring the materials. Firstly, the department requiring materials has to prepare a requisition slip in which the material needed, quality etc, are written. Then this requisition has to be signed by the
Spinning Manager and then it is passed to the stores department. Through this requisition slip the store keeper issue the requested list of materials to the department and these issues are noted in issue register. In order to exercise an efficient control over the stores department, the store keeper must prepare and maintain different registers. Following are the registers maintained in the stores department: 1. Purchase register 2. Issue register 3. Purchase order register 4. Stock register 5. Quotation register 6. L/R register GATE PASS NOTE
Any material or goods goes out from the mill is mentioned in this note. ? Returnable gate pass note If the goods or material sent for the service or repair it is mentioned in this note ? Non-returnable gate pass note If the goods or material sent to sales basis it is mentioned in this note.
STORE LEDGER Receipt issues and closing balance of every goods are mentioned in this ledger for monthly once.
PURCHASE DEPARTMENT
Every running business needs efficient purchase. In this NTC unit, the investment is made by the budget proposals fixed by the Government. The purchase may be of spare parts and Industrial goods. Purchase department consist of four types of purchase namely, ? Cash purchasing ? Credit purchasing ? Tender purchasing ? Contract based purchasing i. CASH PURCHASE
Cash purchase is a type of purchase in which made at the time of emergency with the minimum cost. For Example: The spare part containing the cost of 5000 Rupees, may be brought under the type of Cash purchase. ii. CREDIT PURCHASE The costly items are purchased through credit purchase. Foe Example : New machine with new technology is purchased under the credit purchase.
iii. TENDER PURCHASE The mill is send a letter to the parties who are the member in the mill to give quotation for the particular item before the due date. On the due date the quotations are opened and the parties who quoted lower rate and quality is best is selected. The goods/materials are purchased form the selected party. iv. CONTRACT BASED PURCHASE For one year the mill put contract with one company means that particular year the mil purchase with that company items only. CENTRAL PURCHASE COMMITTEE For all NTC mills there is a central purchasing committee located in the Head Office. If the purchase of an item cost is more than lacks, the unit mill has to ask permission from the Central purchase committee.
FUNCTIONS OF PURCHASE DEPARTMENT
i. PURCHASE REQUISITION SLIP It is the first function in the purchase department it is given by the supervisor to the Store Assistant. The Store Assistant gives it to the purchase assistant ii. PURCHASE ORDER Based on the purchase assistant the requisition slip the purchase assistant place the order for purchase.
PROCESS OF THE PURCHASING
Purchase requisition of Supervisor
Purchase requisition to the store assistant
Purchase requisition to the purchase manager
Purchase manager evaluates the requisition and choosing the method of purchase
Purchase requisition to the purchase assistant
Purchase assistant place the purchase order
COTTON SECTION
It is one the most important section in the mill. It purchase the raw materials required for the productions i. COTTON Cotton is mentioned as bales approximately. The weight of the bale is 165kgs to 180kgs. It is purchased from the cotton corporation of India(CCI) and from the MP state Industries corporations. Verities of the cotton ? BRAHMA BUNNY ? DCGH32 ? MCU5 ? H4
? MECH ii. FIBER ? It is means as metric tones approximately its weight is 425 – 446. ? It is purchased from INDROMA SYNTHETIC INDIA Ltd.
PRODUCTION DEPARTMENT
HIGHARCHY
Factory Manager
Spinning Master
ASM (MT)
ASM (QT)
ASM Shift
Store Keeper
SQC
Wrapping Assistant
Wrapping Boy
MANUFACTURING PROCESS
Mixing
Blow Room
Carding
Drawing
Combing
Simplex
Spinning
Winding
Packing
OPENER PROCESS The opener process is the first process carried on in the production of the cone yarn. During this process Viscose Staple Fibre (VSF) is put in to an opening machine, in order to start the production. Before this anti –static oil is sprayed on viscose in order to avoid the effect of static electricity from polyester and viscose. 0.18% of the total weight of the mixture of polyester and viscose is the amount of antistatic oil required. This oil is mixed with the water in the ratio 1:11 and is sprayed on the fibre and kept for a day before it is mixed and is passed to the next department. MIXING PROCESS The second step in the production process is called mixing. In this process Polyester Staple Fibre (PSF) is mixed with VSF in a predetermined proportion according to
the requirements of the yarn to be manufactured in that particular count. There are three varieties of mixing in this mill. They are as follows: 60s PV in 65:35 blend with yellow tinting. 45s PVin 65:35 Blend 50s PSF HT (100%) without tinting. In order to identify the count and mixing proportion, Polyester Staple Fibre is given a tint. Tinting helps in easy identification of counts. Different food colors, light green, yellow and pink which can be washed easily is used for tinting and is maintained until it is given to the weaving merchants. Mixing coolies or mixing attendants as per the requirements. About five mixing coolies are employed in this department per day and each of them has a work load of 850-kilo/day.
BLOW ROOM The loose mix collected from mixing department is charged to the blow room where they are toppled manually in order to get a homogenous blend of various ingredients of the mix, polyester and viscose. This toppled mix is then passed through the condenser into the tanker and through the pipes it is fed to the second blow room machineries. There are three structures in the blow room and there are two lines of blow room machineries. One is double structure and the other is single structure. The objective of this process is to open out thick masses of the new materials of finer pieces and to give a thorough blending of polyester and viscose. Certain amount of impurities of foreign market and metal particles, if any has to be extracted. The row materials are converted in to a sheet form and wound on a rod. This is called a Lap, T=the length of the lap and weight of the
each lap is determined. The length of the lap is 37 yards and standard weight is 13.5 Kg. A tolerance of plus or minus 300 gram is permitted. The duration for forming one lap is sixminutes approximately. CARDING PROCESS Carding is the heart of spinning process .The lap collected from the blow room is fed to the carding machines of the carding department. In these machines set form of laps are converted into silver form. Each lap is drafted 90 to 100 times and parallelization of fibre takes place. Here short fibres, if any are extracted and the fibres are straightened and parallelized in to uniform size to eliminate unevenness in the yarn thickness and to ensure uniform weight. Cards are collected to each count, according to the spin plan and the silver is collected from the carding machines count wise. Each silver has length of a 3000 meters and the time for producing 1 can of silver is 1:00 hours. There are about 50 carding machines running in this mill. Conventional cards have an average life of 50 years. DRAWING PROCESS In the drawing process card silver produced in the carding department is passed on to this department. Here homogenous blending takes place. The drawing process is of two types. Breaker head Finisher head BREAKER DRAWING
In this process 8 cans of silver is fed to one delivery of drawing machines and each of these 8 silvers are converted in to a single silver by blending and drafting and is located in 1 can, 8 doubling is taking place to form a single silver. Each drawing machine can deliver 16 cans. In total, with 8 can placed each side and collected in two cans. A maximum of 3000 yards can be collected in a single can after doubling. The product breaker head is breaker- drawing silver. FINISHER DRAWING Here 8 cans collected from the breaker head of drawing machines is again processed, in another head of drawing machines. After this processing. About 4000 yards are collected in a can. The silver collected from finisher drawing head is called finisher drawing silver. This is the end product drawing department is 16 deliveries. A drawing tender has to look after 6 deliveries.
SIMPLEX (SPEED FRAME) In this department the finisher drawing silver produced in the drawing department is fed to the simplex machine (120 cans LF 1400 speed frames). The silver is passed through the drafting zone 12 to 13 times. A certain amount of twist is imparted on the body of drafted material, which is called Rove .This Rove is wound on plastic bobbins having a package weight 7500 gm to kg. speed frame (simplex department has 8 simplex machines having 12020 spindles. SPINNING (RING FRAME)
In the spinning department bobbins that are brought from the simplex department are reeled on the ring frame reel and the Rove is drawn through the drafting zone. The main object of spinning, drafting, twisting and winding. Rove is drafted to a thinner form of yarn. It is drafted to 20 to 27 according to the count to be spun. Different counts can have different twist, which binds the fibre with one another. This is called TPI (Twist Per Inch). A yarn is wound on plastic tubes that are called ‘Cops’. Average yarn content on a cop is about 70 grams. These cops are taken in to the next department that is cone winding. CONE WINDING In this department yarn on cops is converted in to con form. In the cone department all types of defects in yarn is rectified and also yarn on cone will be defect free. According to the requirement of the market bigger cone of yarn are packed weighing 1.25 Kg each. A winder has to look after 15-30 runs according to count of the yarn. The full built cone of 1.25 kg is removed and collected by the winder and then it is stacked in the bins count wise in the packing department. The cone winding machinery has 120 spindles that are winding 120 cones at a time and it takes about 2.30 hours. This department has 8 cone winding machines and there by each machine requires 4 persons. CONE PACKING In this department the final product of yarn on cones are packed in polythene bags. One such bag contains 40 cones and the Net Weight of 1 bag is 50 Kg. They put necessary details like count, gross weight, month and year of packing, bag numbers in lot numbers. Then these bags are ready for dispatch to the market or depots. Altogether, there are 6 workers in this department.
HUMAN RESOURCE DEPARTMENT
The employees of an organization are precious and the backbone that plays a stupendous role in its development and productive activities. Its employees significantly influence the prosperity of the organization. Liberalization and globalization has created challenging opportunities to make its human resource competent enough to HRM department in the organization. Human Resource Management is an art and science of managing people who are engaged organizational in productive occupations. Human function that deals with issues Resource Management related to employees is the such as
compensation, hiring, performance management, organizational development, safety, wellness, benefits, employee motivation, communication, administration and training. Human Resource Management is the function within an organization that focuses on recruitment, management and provides direction for the people who work in the organization. Human resource management can also be performed by line managers. Human Resource Management is, no doubt, an outgrowth of the older process and approach. But it is much more than its parent disciplines – personnel management and behavioral science. Its approach is more comprehensive from beginning to end. Its emphasis is not only on production and productivity but also on quality of life. It seeks to achieve the fullest development of human resource and fullest possible socio- economic development. Maximum individual development, developing working relationship and effective utilization of human resources are the primary goals of human resource management. A healthy climate, characterized by the values of openness, enthusiasm, trust, mutuality and collaboration is essential for developing human resources. DEFINITION OF HUMAN RESOURCE MANAGEMENT According to Dale Yoder “ the management of human resource is viewed as a system in which participants seek to attain both individual and group goals”. PROCESS OF HUMAN RESOURCE MANAGEMENT i. Acquisition function: Acquisition process is concerned with securing and employing the people
possessing the required kind and level of human resources necessary to achieve the
organizational objectives. The acquisition function begins with planning. It also covers the function such as job analysis, human resources planning, recruitment, selection, placement, induction and internal mobility. ii. Development function: It is the process of improving, molding and changing the skills, knowledge, creative ability, aptitude and value. The development function can be viewed along three dimensions.
? Employee training - It is the process of imparting to the employees the
technical and operating skills and knowledge. It also includes changing the attitudes among workers.
? Management
development – It
is
primarily
concerned
with
knowledge
acquisition and the enhancement of an executive’s conceptual abilities.
? Career development – It is a continual effort to match long-term individual
and organizational needs. When human resources have been developed effectively, one can expect to have competent employee with up-to-date skills and knowledge. iii. Motivation function: The motivation function begins with the recognition that individuals are unique and that motivation techniques must reflect the needs of each individual. iv. Maintenance Function: The maintenance function is concerned with providing those working conditions that employees believe are necessary in order to maintain their
commitment to the organization.
FUNCTION OF HUMAN RESOURCE DEPARTMENT
A. Recruitment. B. Compensation. C. Labor laws. D. Training. E. Time Office Management. F. Social Responsibilities.
G. Welfare Activities.
RECRUITMENT It is public sector mill so they are recruiting people through following ways ? Employment Exchange ? By Conducting written exams ? By conducting Interview ? Casual worker regularization Scheme(720 days/3 years ) COMPENSATION ? Salary ? Under The Minimum Wages Act
? Salary date will be 7th of every month for permanent workers.
? Salary date for causal worker will be 10th of every month.
Gross Salary ? Basic (department) + DA(Vda + Fda) + Hra – detections = Gross salary
Salary detections ? Provident fund ? The Employees’ State Insurance ? Advance from the salary ? Other credit facilities Net salary Gross salary – salary detections = net salary ? Bonus under Payment of Bonus Act ? Allowances ? Advances ? Provident Fund (PF) i. 12% from the employee and 12% from the employer is calculated for the Pf ii. The current interest rate for provident fund is 8.33%
? Employees State Insurance (ESI) i. 1.75% from the Employee and 4.75 from the employer is calculated for the ESI ii. The minimum wage for the casual worker is Rs.184.00. it is fixed by the government on April- 2011 ? The minimum wage for the casual worker in the year of 2010 – 2011 is Rs.171. LABOR LAWS ? Factories Act, 1948. ? Payment of Wages Act, 1936 ? Minimum Wages Act, 1948 ? The Indian Trade Unions Act, 1926. ? The Employees’ State Insurance Act, 1948.
? The Employees’ Provident Fund Act, 1952.
TRAINING AND DEVELOPMENT ? Training is given to the employees when the new machinery installed means. ? Training given for the development of employees. ? Most of the training are in the form of On the Job Training. ? In this mill there is the on the job training is given to the workers
? Apprentice training and just in time training methods are mostly followed by this mill ? This mill is giving 15 days training for the new worker TIME OFFICE MANAGEMENT ? This system is followed for the attendance of the employees. ? Attendance is maintained by the Time keepers. ? Attendance is for all 3 shifts. ? Leave Policy. Attendance is calculated in two ways ? By employee token card and ? By Shift supervisors attendance. There are three shifts in this mill, each shifts attendance is maintained by the time keeper. Three shifts are SHIFT First shift Second shift Third shift IN TIME 7.00 Am 3.30 Pm 12.00Am OUT TIME 3.30 Pm 12.00 Am 7.00 Am
LEAVE POLICY
? Earned Leave. ? Owned Leave. ? Festival Holiday. ? Weekly Off. ? Sick Leave.
? Accident Leave.
HUMAN RESOURCE INFORMATION SYSTEM In this mill there is no existing human resource information system Reason for not implementing the HRIS in this mill ? The staffs are old people, their observation of information system is slow ? This makes double work to the HR manager in this mill. ? The staffs are experienced with the manual calculating methods. ? Suddenly they cannot adapt to the new information system.
FINANCE DEPARTMENT
This is the major department of the company. Finance department is located with the factory. It prepares different kinds of financial reports and gives information to management for decision-making purposes. Finance department prepares the Income statements, Balance sheet, Trail balance, Cash flows, Production report for the whole month, stock taking report yield comparison report etc. these all reports are helpful for the management to make production plan, financing decisions and other important matters. The head of the department in finance manager. He is a chartered accountant. HEIRARCHY
General Information
Bankers: State Bank of India, state Bank of Travancore Auditors: M/S Jacob & George (Chartered Accountants) Significant accounting policies Fixed assets and depreciation i. In the case of fixed assets acquired as a result of nationalization, the life of the assets for depreciations purpose has considered as if they were new. These assets have been taken at the value as then approved by the Board of Directors of the corporation. The assets acquired subsequently are stated at cost. ii. Depreciation on fixed assets is provided on the straight line method asper section 205 (2) (b) of the Companies act, 1956. iii. Depreciation has been provided for in accordance with circular number of 14 (9 h). File No.1/12/92-CL-U dated 20/12/1993 of the Government of India, Ministry of Law, Justice and Company affairs, Department of the Company Affairs, on the original cost of all the assets including the existing assets at the rates prescribed in the schedule XIV of the Companies Act, 1956, retaining the residual at 5 %. iv. For the fixed assets required after 01.04.1974 and whose actual cost does not exceed at Rs 500/-. Depreciation has been provided 20%. v. Depreciation of the amount capitalized subsequently on account of foreign exchange fluctuation is provided prospectively over the residual useful life of the asset. vi. Gains or losses on disposal of fixed assets are recognized in the profit and loss account.
Inventories Valuation of inventories is as follows: a. Stores , spares, dyes, chemicals and coal are at weighted average cost in respect of inventory (consumable stores/spare parts) the provisions is made as follows: Value of items held in and not moved for more than 5 years-50% Value of items held in stocks and not moved for more than 3 years-Nil. b. Raw materials at weighted average cost or net realizable value whichever is lower. c. Finished goods packed cloth and yarn at cost or net realizable value after making provisions for obsolescence, whichever is lower. d. Waste or net realizable value. e. Materials in process: - spinning and weaving in process loose yarn, yarn, cloth –in- process at lower cost or net realizable value. f. The unfinished job conversion contracts for yarn and cloth are recognized as work in process valued at contracted price less expenses still to be incurred by making ready for delivery. Investment a. Quoted value at lower cost or market value. b. Unquoted value at cost Debt or receivable
i.
Debt or receivables from private parties which are doubted of recovery or adjustment and outstanding for more than three years.
ii.
Debts or receivables from the sister concern into subsidiaries. Employees of the mill/Government department/ other PSUs.
Prior period expenses and income Expenses and income of prior years less than Rs 10000/- in each case has been charged or accounted in the current year itself. Repairs and maintenance Store consumptions, salaries and wages incurred on maintenance are charged to primary held on accounts. Carrying charge Carrying charge on cotton purchase has been accounted under administrative expense. Gratuity The gratuity liability in respect of existing employees has been calculated on actual valuation, based on February month earnings. Insurance claims Insurance claims arising out of fire accident, machinery break down, transit loss and other miscellaneous losses will be accounted only when the claim is admitted by the insurance and the claim voucher discharged by the company. Foreign currency liability
The foreign currency liability in respect of import of machinery, under differed payment guarantee arrangement through holding company, is revalued at the prevailing market rates as on the Balance sheet
The adjustment for the differences, if any in respect of: i. Principal amount is adjusted to the cost of machinery. ii. Interest accrued up to the date of balance sheet ids death within the profit and loss account. iii. Un accrued future interest is treated as current asset Foreign currency transaction The transactions in foreign exchange are accounted at exchange rate prevailing on the date of transaction. Any exchange gains or losses arising out of the subsequence fluctuation are accounted for in profit and loss account exempt loss relating to acquisition of assets. Leave with wages or salary provision Provision for leave with wages or salary is made for the number of days of the credit of the employee on date of balance sheet based on February month earnings. Expenditure on voluntary retirement scheme Expenditure incurred for implementation of voluntary retirement scheme is charged to profit and loss account in the year in which the employees relieved and the same is treated as an extra ordinary item.
QUALITY CONTROL DEPARTMENT
One of the achievements of the industrial revolution has been the ability of mass producing goods of uniform quality. In recent years, poor quality has been causing problems and an embarrassment to the industry owners. Quality control has, therefore, become highly relevant. Quality refers to the sum of the attributes or properties that describe a product. These are generally expressed in terms of specific product characteristics such as length, width, specific gravity etc. To be meaningful in an industrial sense, these characteristics must be qualitatively expressed in terms that can be objectively measured or observed. Systematic control of these factors is the quality control. One
benefit of quality is increased productivity. Increased productivity results in better profit and builds customer loyalty. Quality is the only weapon to fight competition. In Sri Ranga Vilas mills routine quality control is done in each department on a regular basis in order to ensure quality norms of the yarn. Quality of yarn is checked at different stages of production. Samples departments. The standard measure for calculating the quality of yarn is grains. 1 gram = 15.7grains at the end of production. 4.54 grams = 7000grains = 1 pound (1b) are taken from roving and spinning
VARIOUS STAGES OF QUALITY CONTROL SYSTEM A. Blow room B. Carding C. Drawing D. Comber E. Simples F. Spinning G. Cone winding H. Auto corner I. Cone packing BLOW ROOM ? Hank checking ? Lap weight checking ? Waste percentage checking ? Lap CV checking (yard to yard)
? Monthly once speed checking CARDING ? Hank checking ? Waste checking ? Speed checking ? Fire yard CV checking
DRAWINGS ? Hank checking ? A% checking ? U% checking ? Speed checking COMBER ? Hank checking ? Waste checking ? Speed checking ? Cleaning efficiency
? U% checking SIMPLEX ? Hank checking ? U% checking ? End process study ? Strength ? Machine audit SPINNING ? Speed checking ? End process study ? Shape study
CONE WINDING ? Rewinding ? End breaks study ? Cop breaks ? Machine audit ? Stop motion checking
? Cone weight checking AUTO CORNER ? Split test ? Idle (snap study) ? Speed checking ? Cone weight CONE PACKING ? Cone visual defect ? Cone weight ? Bag weight
MARKETING DEPARTMENT
Marketing department of this mill for the execution of orders as well as marketing of the products in foreign countries. The main objective of the department is to generate the
export business with quality products and better services as well as to provide efficient after sales services. DISTRIBUTION AND SELECTING TERMS The company exports are the major portion is yarn. In the local market yarn is sold directly to brokers who in turn sell it to other mills for further processing. Yarn is sold on cash basis. Total turnover of yarn is made on cash/credit basis. MANAGING MARKETING INFORMATION Marketing consist of people, equipment and procedures to get, sort, analyze, evaluate and distribute needed timely and accurate information. Internal record systems The basic information system used by marketing managers is the internal record system. It includes order to payment cycle, sales reporting system prices, inventory level etc. By receiving these information’s, managers can spot important opportunities and problems. The Sri Ranga Vilas Ginning, Spinning And Weaving Mill is maintaining its internal records by keeping order to payment cycle. In this system sales/marketing department keep order up-date total order quantity, balance quantity etc. Prepared invoice under the instruction of sales dept and goods are sent to their respective orders by special delivery. Every firm has maintained its marketing intelligence system for the feed back from customers and agents etc that what has been happening in the market.
MARKETING RESEARCH SYSTEMS Every manager is required to conduct marketing research, formal research on
specific problems and opportunities; they conduct a market survey and product preference test and a sales forecast. MARKET DEMAND In this Mill measures demand by adopting the following method: ? Sales representative/agent collect data of total yarn demand. ? Specific demands of particular count are determined and calculate the number of users of said product is calculated. Then total demand is calculated and Mill plans to get maximum share from the market demand. MARKETING MIX Marketing mix is the marketing task that the firms are to be required its objective in the target market. The marketing mix consists of every thing the firm can do to influence the demand for its product. The many possibilities can be collected into four groups of variables known as the “4p’s”. Product In this mill produces yarn and high quality fabric. Two types of yarn products 1- Cotton Yarn 2- Poly-cotton Yarn
PRICING
Pricing is the amount of money that customer have to pay to obtain the product. The price policy of the company should be in such a way that it should produce a reasonable profit for the company and satisfy the customer. There are two types of costs: ? Fixed cost ? Variable cost 1. Fixed cost Fixed cost is the costs, which remain always same whether, are produce large quantity. Therefore, companies always try to use there full capacity of production because with increase in production the fixed cost decreases. 2. Variable cost Per unit variable cost raises as the quantity produced decreases. Following factors are included in variable cost: Transportation Cost of material STRATEGIES IN PRICE FIXING There are two types of price fixing strategies ? Directly to customer ? Indirectly to customer 1. Directly to customer If they sell their product directly to the customer then they fix price in such a way Fixed cost + Variable cost + Desired profit 2. Indirectly to customer If company sells their products indirectly then they fix price in such a way Fixed cost+ Variable cost + Desired profit + Middle man’s commission
In this case the profit margin depends upon the quality and condition of the market. If the market is new then the price will be new to attract the customers and compete the existing competitors. PRICING PROCEDURES The NTC head office fix the price of the finished goods. This Mill has following procedure for exports Inquiry Customer inquiries are received from telex, fax and letter. They are directly sent for approval to CE and after approval sent to concerned department. Costing Costing sheets are prepared for CE is approval. In the absence of CE, department in charge approves price. If both are not available then section in charge is allowed to quote the price. Approval NTC gives the approval or may give other price to be offered. Contract review & check sheet Section in charge takes following steps before issuing a contract: ? Prepare contract review check sheet ? The requirements are adequately defined and involvement’s of production areas. ? In house/out side have the capability to meet the order requirements. After getting approval of costing and review of customer requirements, prices are quoted to customer for confirmation. After confirmation of prices by customer, sales contract is issued to the customer with complete detail of construction, width/size, price, quantity, delivery, payment terms etc. and the cloth order is sent to relevant department.
Dispatch o f goods Dispatch able goods detail along with samples received from folding department. Each section verifies quantity of goods to be dispatched, they intimate to S &D section to dispatch goods. Transportation Shipment & dispatch is responsible for all documentation and shipment of goods by road and sea. ISO department prepared management information system report.
PROMOTIONAL STRATEGIES The Sri Ranga Vilas mill has not any promotion point its products. Because the demand of their products in the world is very high. We can easily judge them from their work. Our export figure is varying high as compare to any individual company. SOURCES OF COMMUNICATION The Sri Ranga Vilas mill uses following sources of communication ? exhibition ? Personal visit to the customer ? Customer visit to the mill ? Fax, Telephone.
SALES DEPARTMENT
In sales department the yarn are dispatched along with the delivery note and sales, invoice to the dealer The functions of sales department are below PERFORM INVOICE It is sent to the parties who are selected along with the intimation letter. It includes the item name, name of the party, kgs, tax, packing charges, etc are mentioned INVOICE After the payment is received the invoice is given. It include the party name, mill name, invoice number, amount, etc are mentioned in this invoice Types of sales 1) Yarn sales, 2) Waste sales 3) Yarn sales There are three types of yarn sales is done by this mill namely ? Depot ? Direct ? Export
i. Depot The parties place the order in the NTC depot located at different places. The depot gives the order to the mill and collects the yarn and sold it to the parties ii. Direct sales Direct sales are cash based sales. The goods are delivered to the parties and the cash collected immediately. iii. Export sales The yarn is also sold to the other countries. For the exports sakes the NTC had to get approval from the government before the sales. The yarn is exported to all countries WASTE SALES Wastages is segregated from the various levels in production department are sold in a specified period. The wastage is sold through tender method. The details about the sales are sent to the NTC head office. SALES THROUGH TENDER The parties who are the member in this mill are sent a letter to sent a quotation before due date. On the due date, the tender quotations are opened. The party who coated
the maximum amount will be selected. The intimation letter is sent to that party and to the NTC head office.
3.1.1. ROLE OF EACH MANAGER ROLE OF PURCHASE MANGER
? The Purchasing Manager develops purchasing policies and procedures and controls the purchasing department budget. ? Manages day-to-day functioning of purchasing group. ? Reviews purchase orders to ensure adherence to quality and procedures. ? Ensures that re-ordering of stock is carried out on a daily basis as required to maintain adequate stock levels of parts for production. ? Understands assembly process thoroughly to ensure that the material is delivered just in time. ? Participates in the creation of forecasts, and relates those to production programs and stock required for the daily production round. ? Represents purchasing in discussions and strategies aimed at improving overall integration of purchasing, assets ? Participate in the development of specifications for equipment, products, or substitute materials. ? Reviewing the technical specifications for accuracy and completeness ? Taking decision purchase and purchasing methods.
ROLE OF HR MANGER
? Recruiting and placing the employees
? Maintaining Compensation for their employees. ? Following the Labor laws. ? Training the employees who have the low performance.
? Time Office Management. ? Social Responsibilities.
? Welfare Activities for the organization.
ROLE OF FINANCE DEPARTMENT
Following are the main functions of finance department ? To prepare monthly and half-yearly reports ? To keep the record of inventory and stock ? To maintain a liquid position ? To maintain adequate cash to run the operations of business ? To reconcile the bank statements ? To make payments to the suppliers ? To maintain debt and credit balances of the customers ? To deal with the sales tax and income tax departments
? Prepare profit and loss accounts & income statements ? Keep record for the payment of salaries
ROLE OF SALES DEPARTMENT
?
Maintaining the invoice reports
? Checking the product details while selling the product ? Deciding the method of the sales and type of sales
?
Sending sales report to the Finance department
3.1.2. SWOT ANALYSIS
STRENGTH ? In this company they are having a large number of workers. ? India is the largest exporter of cotton yarn. Here the final product of this concern is yarn. So this can be considered as a strength of the concern. WEAKNESS ? Most of the machines using in the company are very old. ? The employees are not appraised in time. ? No chance for younger people as the official staff of the organization. Most of them are very experienced in their own field. OPPORTUNITIES ? The textile industries have a very good future in the world market. THREATS
? Power failure may be happen. ? Accident may be happen. ? Strikes may happen in between employees & employer.
CHAPTER IV SUGGESTIONS AND CONCLUSION
4.1 SUGGESTIONS
?
If the SRV mill needs more concentration in Safety measures such as
providing mask and glass for the employees will be help full for their workers
?
The mill needs more concentration on cleaning the places like basic needs
of the employees ? Improvements in the motivation system will be helpful to avoid the
absenteeism of the employees in this mill ? There is some improvement needs in the employees salary increments in the
present situation. It may be helpful for the employees day to day needs on present.
4.2 CONCLUSION
This training period immensely beneficial as, I learnt practically all that I had been studying theoretically. It had given practical knowledge of how a job is done at work place. The intense training I underdone for 45days have made me aware of the various problems that surface in an organization. The training has also helped me to gain better understanding of the various departments and organization structure. The issues what I have observed in Sri Ranga Vilas Mills, Coimbatore.
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