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CHAPTER -I
INTRODUCTION
The glorious Indian industrial past was related with cotton
and silk goods, jewels, embroideries etc. After independence, large scale industries
especially in consumer goods like cotton textiles, jute and sugar had registered
significant growth. Large scale industries are those which require huge capital
investment and long growing period.
Large scale industrial sector is one of those sector that paved the way for
economic growth in a country like India cotton textile industry is a major large scale
industry and contributed one fifth or 20% of the total industrial output of the country.
The cotton textile industry has three main divisions. They are:-
1) The mill industry producing yarn & cloths
2) The power loom factories producing clothes from mill made yarn
3) Widely dispersed handloom units producing cloth both from
mill made and hand spun yarn.
The present study of an organization like Vijaya Mohini Mill, Tirumala.
Thiruvananthapuram, one of the leading national textile Corporation units in Kerala,
is an eye opener to the various obstacles being faced and the future prospect of
industry.
Objectives of the study
To study in detail the entire structure and functioning of the company.
To make an analysis of the organization’s performance.
To understand about the functioning of each department in detail.
To understand the extent to which management theory matches with actual practices.
Significance of the study
In today’s world, business has become more and more competitive and
the technology has changed the nature of business and organization. This study
analyses in detail about the functions of different departments on the basis of which
strength, weakness, opportunity, and threats are arrived at. The finding of study
would give valuable information for improving the overall performance of the
organization.
Research Methodology The main sources of data
are primary data and secondary data.
Primary Data:
Direct Interview
Observation Expert Opinion
Secondary Data
Annual Reports Websites Journals and Magazines Catalogue
Limitations of the study
The busy schedule of the department heads restricted the collection of
detailed information.
Secondary data obtained is not that much reliable.
Time to time company meetings also restricted the visit to several
departments.
The confidentiality restricted the collection of financial accounts.
CHAPTER II
MANUFACTURING PROCESS
PRODUCTION CHART
BLOWING
BLOWI
NG
CARDING
COMBER
SIMPLEX
SPINNING
WINDING
PACKING
GODOWN
DRAWING
MIXING
BLOWI
NG
MI
BLOWI
NG
BLOWI
NG
MANUFACTURING PROCESS
Production department function directly under the factory manager. It
consists of factory engineering department and stores department.
1.MIXING
At the first stage of production process hand stock mixing is done. The bales
are taken in the ratio of 70:30, ie 70% polyester & 30% of cotton.The bales are
arranged as layer by layer. The process is done in a a special room called mixing
room, which is in a lower tempter than that of the normal room temperature.
2.BLOWING
The raw cotton receved from the godown is opned and cleanedin the blow
room to remove its impurities.For this purpose machine s named Trutzchler and
Lekshmi Reiter’s are installed,which mixes the cotton and is them converted into
regular shells calld lap by the blowroom machinery.A colour is added to identify the
polyester failure.
Machines using here are BO-1200, MFC , MPM-8, ASTA-800, CVT1-1600,
LVSA-B. MPM-8 receves cotton from MFC at 100% and supplied to ASTA at 20%.
The CVT1 Machine runs at a speed of 690 rpm. The minimum speed is 570rpm and
maximum is 1000rpm.
3.CARDING
This process seperates the cotton fibers from impurities and removed short
and immaturefibers. The carding engine delivers cotton on a filling web which is
collected together to form a loose rope of fibers called ‘Silver’. These silver as a
product is stored in cans. These silvers are collected in coir cans. Carding machine
used here is ‘Lekshmi Rieter . There are 35 semi high production carding machines
and 7 high production carding machines. Macines using here is FBK-553, DK 800,
KHL 600 and Lekshmi Rieter.
4. COMBER
Objective of the comber is to remove short fibers , lambs and impurities
present in card silver. When the silver is passed through the comber machine, the
short fibers are unmoved and thus larger staple length can be optained. Comber
functions as to remove fiber hook and parallalise the fiber, to bring about fiber to
fiber seperation and to remove short fibers.
5.DRAWING
The ‘silver’ lacks uniformity and so silvers are processed in the drawing
frame. Here the silvers are made uniform in thickness by doubling process and fiber
gets drawn straightened by drafting process.
Hence both doubling process and drafting process are taken places. Doubling
is done to improve the uniformity of the fiber, parallelisation of the fiber is achieved
through drafting ie, without breaking continuity.
Silver from cardig are stretched or down in states by passing them through a
drawing frame. Eight carding silvers are converted into one silver through the
drawing frame, and it is more narrow in which fiber have been blended and aligned
more closely. Lekshmi Rieter model no Do63 and Trutzchler, model No. HSR 1000
etc are used here as drawing machines. There are six such machines.
6.SIMPLEX
The level of ‘Silver’ determines the quantity of the yarn spin. The silver
drawn from the drawing departments are to be thinned out into a bobbin to suit the
yarn to the spin.the process of converting the silvers is done in the fry frame
department.Simplex machines used are model JINGWEI, JWF-146.
The product here is called Rover and it is passed to spinning section.
7.SPINNING
Spinning frames convert the roving receved from simplex machine into yarn
of receved count. Here each bowan is converted into 8 corps. Each of the bowan has
2kg. Spinning frame need24000wts power for working. 29 spinning machines are
working in this section and 51 workers at day shift. Spindle capacity of the present
machine is 864.
8.REELING MACHINE
The yarn prepared by the reeling machine is called hank yarn. The hank yarn
is for handlooms only. The company has stopped producing hunk yarn as it is under
contious loss.
9.WINDING MACHINES
There are eight machines and all are the automatic ones. The machines are
known as autocones.. Each macines have the capacity to produce 120. The machines
used are from Textool and Brad corner. Machines from Brad corner have the speed of
640ypm. Minimum is 80 and maximum is 720ypm. Autocorner machine have the
speed of 1050ypm.
10.PACKING
Cones are packed by using polythene bags of 50 in number and stiched with
grows weight 52 Kg and net weight 50Kg. The product is known by the brand name
’Mohini warp’ blended spun yarn and has its market mainly in Bombay.
QUALITY CONTROL DEPARTMENT
There is a statistical quality control department to check the quality of
the yarn.
The quality policy of the company reads:-
“To manufacture and supply yarn in conformity with agreed specifications
maintaining delivary schedule to the full satisfaction to its custmers.”
The company aims at continual improvement of quality of yarn.
The measures adopted are:-
By adhearing to an effective quality management system.
By creating awareness among all the employees about the importance
of quality measurement system.
By creating most congenial and healthy working enviornment.
The quality department supervises the quality from the blow room to the winding
section. The quality department in order to maintain the qualityof cotton which is in
bale form, conducts certain tests:-
The test to find out stample length
Strength test
Fiber fitness test.
Quality tests are carried out in the mills some are send to Regionlal lab, Banglore and
some to KSTC, Nellaymbalam.
ENGINEERING DEPARTMENT
It is under the production department. It has two section, a workshop and a
power house. An Assist Engineer is the in charge of the departnent.
The workshop undertakes all the maintance functions and installations of
machinery. The breakdown of the machines is prevented to an extent through
preventive maintance.
In this section, there are 11 workers , 5 workers in general shifts and 6
workers in each of the three shifts.
The Electrical Section include a generator. The Electrical section looks after
the power requirement of the mill. Eletricity is obtained from KSEB. There is a
separate transformer of good capacity inside the mill for this purpose. The power
supply of the entire mill is regulated by this department. Also a stand by generating
set of capacity is installed and maintained by depatment
STORES
The company maintains a storewhich has a storekeeper who is in charge and
under him there is a Senior assistant and a Junior asst. The store makes use of the bin
card system. A code number is provided for each material. The records are
maintained on the basis of Weighted avearage method.
The receipt procedure of the stores are as follows:-
1. .An indent is prepared by the concerned departments and sent to the
stores.
2. After collecting the indents quotations of lowest rate are accepted by a
committee consisting of General Managers, Account managers, and
Asst Engineer.
3. after accepting the tenders,purchasing orders are send to concerning
parties.
4. Received goods are inspectd by concerned depatments which is
certified by storeskeeper on Good Receipt Inspection Report.
5. There are alsosome central stores purchase items which are purchased
through the head office.
CHAPTER III -MARKETING
MARKETING AND SALES DEPARTMENT
Marketing consists of the strategies and tactics used to identify, create and
maintain satisfying relationships with customers that result in the value for both the
customer and the marketer. Every organization aims to promote its products among
the wholesalers through substantial sales orders.
Yarn, which is produced by the mill, is sold through whole sales. The sale
could be carried out only under the direction of NTC. A weekly meeting is being
conducted by them to decide selling price. Then it is informed to the depot keepers.
When the depot keepers reports back, officers are given to the purchase. Some direct
purchases are also being carried out in the company. If any private parties are
interested to buy the yarn for the price specified, that is informed to the head office
and after getting their suggestion to the sales could be made.
There is certain agency who buys the product directly from the mill,
they are:-
1. Piranha Agencies
2. Shaw Agencies
3. Sangeetha Agencies
4. Rajiv Agencies
The mill is under the loss for the past six years as that of the other competitors.
The textile industry itself is ailing due to the current and trend of high raw material
price and considerably low price for the finished products. A policy that could be
implemented for the profit making is to increase export. The mill is presently
planning to go for export, on competition of the implementations if the
modernization project.
SALES POLICY The success and
failure of a business depends upon its various sales polices for the selling
operation. The market division gives information regarding the design of various
policies. Now at present NTC has no policy.
SALES PROMOTION
Successful marketing will depend on having the right product, at right time at right
place with right promotion. The marketing activities can be made more effective or
efficient by designing the sales promotion. The yarn is effective tool for cloth
making, the effective tool for sales promotion; depend in the quality testing
experts. In V.M.M there is a quality control department for testing qualities. The
NTC mills objectives is to produce quality goods.
SALES FOR CASTING
With a proper fore casting company can achieve good training result and neglect
the loss. Since the demand for yarn is fluctuating in the market there are
fluctuations in the sales prices. Therefore proper sales forecast is not possible this
may be the great reason for the loss of NTC unit. The mill has plans for expanding
its capacity bid it is handicapped due to non availability of funds. There are two
types of section in mill. Credit society for getting loan and consumer society for
supplying provisions. Here apprentice training is compulsory, under Labor Act.
COMPETITORS
The mill is facing a high competition in the market. The
product of the mill lost its market due to poor quality. Some of the competitors
are:-
1. Muragan Mills, Coimbatore
2. G.I.N Textiles, Alleppey
3. Alagappa textiles mills, Trichy
4. Kerala Leksmi mill, Trichy
5. Parvathy mill, Kollam
6. Kannur Spinnig mill, Kannur
CHAPTER-IV
PERSONNEL DEPARTMENT
DEPARTMENT STRUCTURE
Personnel manager heads the department. Under him there is a head time keeper
and a security inspector. PF, ESI and canteen sections are also working under this
department.
PERSONNEL MANAGER
PF
ESI
CANTEEN TIME OFFICE
HEAD TIME
KEEPER
SECURITY GUARD
SECURITY
INSPECTOR
The Personnel manager is also in charge of welfare officer as there is no
separate post in the mill. Personnel department has the duty to look after the areas
including recruitment, selection, placement, training, promotion, long term
agreements,
administrating mills quarters, disciplinary actions etc.
The factory works 7 days in a week, 24 hrs a day with three shifts.
The shift timing: 7.30 AM to 3.30 PM
: 3.30 PM to 11 .30 PM
: 11.30 PM to 7.30 AM
STAFF AND MILL WORKERS
Type of works No required No available
Supervisors 13 6
Mill workers 363 212
Casual labors 170 170
Classical staff 16 20
Officers Required Available Remarks
General Manager 1 1
Factory Manager 1 1
Personnel Manager 1 1
Accounts Manager 1 1
Deputy Spinning manager 1
Asst Spinning manager 1 1
Asst Engineer 1 1
PERMANENT OFFICERS
The mill has 202 workers on roll.
Clerical staff on roll was:-20
Supervisors :-6
The actual requirement of the mill is 363 permanent workers for the full
production. The deficit of the workers is managed by appointing casual labors on
daily wages. Now the company has almost 170 casual labors on roll.
RECRUITMENT
The mill is being a sick industry; the company has banned direct
recruitment, and appointment of the officers. If the employees are divided into
categories A, B, C & D. A & B are managerial categories since 1992, there is ban
on direct recruitment, and C & D are workers and staff categories. The recruitment
in these categories is done through employment exchanges.
The retirement age is 58 and if the workers are appointed 1970 the age is 60
years.
SELECTION
After recruitment, selection is done by ascertaining the qualifications of
the candidate with job requirements. The selection is conducted on the basis of
1. Test
2. Interview
3. Medical examination
4. Appointment
After selection management will issue a memo, which is sent to the
concerned candidate indicating his/her selection. After this, they have to undergo
apprentice ship or probation to a certain period. The stipend during this period will
also be specified.
PLACEMENT
Placement is assigning appropriate job to candidates in the organization.
After joining the candidate must fill a bio-data from and an attestation from in
his/her own handwriting. The candidate should also submit a conduct certificate.
The time keeper will collect the required data relating to the person on the date of
joining and keep it on the service record of the person.
INDUCTION
After placement, the employee is given an induction by which he or she is
introduced to the co-workers, supervisor and exposed to process of production
pattern, discipline, standing orders etc of the mills.
Mill does not have a systematic implementation of induction
program. The personnel manager gives necessary instructions and guidelines
regarding the work. After this the newly appointed persons are guided by the head
of the section.
PROBATION
After placement the employees are given certain period of probation. Here the
probation period is 8 months for workers and one year for general staff. Only after
the successful completion of the probation, the employees are made permanent. If
the performance is not good the probation will be extended again. If the employee
satisfactory completes probation he will be confirmed in that particular post.
TRAINING AND DEVELOPMENT
Training and development becomes important as far as the growth of
the company is concerned. As the mill does not have a separate training
department, this function is performed by personnel and production departments.
Training needs are assessed by consulting with various departments.
The departments which need trained labour report it to the personal department and
makes necessary arrangements for training programme.
METHODS OF TRAINING
The workers are given only on the job training. The NTC staffs are
sent to the NTC staff training college, Coimbatore for training. The various
training programme have been given to managerial staff by different agencies.
PROMOTION AND TRANSFER
PROMOTION
The mill had followed the SITRA standard of promotion of employees
which is specified in the memorandum of settlement. The matters related to the
service conditions of the workmen of the textile industry in Kerala as a whole was
taken up by the Industrial Relations Committee (IRC) for Textiles, constituted by
the Govt. of Kerala and a general industry wide settlement under section 12(3) of
the ID Act. This refers to an IRC settlement between employees and workmen
represented by the union of various textile mills in Kerala.
As provided in the IRC settlement dated 1-12-1994, unit level
discussions was reached. As per the settlement the principle to be followed in case
of promotion is merit-aim-seniority. The promotion of management staff is done at
corporate level. It is the supervisor immediate to the worker who certify that a
worker is eligible for promotion.
The workmen becoming surplus in any category or department on account
of implementation of settlement shall be transferred from one category to another
category or department, while doing so the person shall be treated the junior most
workmen in that category.
Line of promotion of workers
1. Blowing 2.CARDING
3. DRAWING
4. SIMPLEX 5.SPINNING
HOPE FEEDER
SECUTHEE TENTEE
JOBBER CUM FITTER
LEANINIG GANG
DOFFING BOY
C
BOBBIN
LARRIER
DRAWING
TEENTEE
OLIER
SIMPLEX
TEENTEE
DOFFING
BOY
SPINNIND
DOUBLEE
DOFFING
CARIEE
BACK TENTEE
CARD TENTEE
ASST. FITTEE
OILEE CUM JOHBEE
6. POWER HOUSE 7.WORK SHOP
8. SECURITY GUARD 9.WINDING
JOBEE
ASST.
FITTEE OLICE CUM TYPESTICHEE
RESENC
PIECER
LINE JOBEE
DUFFING
JOBBEE
JUNIOR ELECTRICTION
CHARGE MAN
ASST. CHARGE MAN
SWITCH BOARD OPERATOR
SENIOR ELECTRION
HELPER
MAISTRY
FITTEE
ASST FITTEE
PACKEE
9. CLEANING GANG
10. REELING
SECURITY
GUARDHEAD SECURITY
WINDEE
CLEANING HANG LEADER
ROLLER COVERER
ASST. ROLLEE COVERER
FITTEE
ASST. FITTEE
CLEANING GANG
YARN CARRIER SWEEPER
MAISTRY
REELEE
REELING
ASST. FITTEE
OLIEE
TRANSFER
The management reserves the right to transfer employees from one shift to
another according to emergencies of work at its complete discretion. Inter
departmental transfer is done to both workers and clerical staff as per changes in
count pattern, product mix, break down of machine idling of machinery in order to
adjust surplus workers. Any person in any of the mills which comes under the
Bangalore subsidiary wants to join in any of its other mills must give an
application. If he agrees with the terms and conditions of that mill, he is considered
as the junior most of that mill. For the unit staff transfer is not applicable. In normal
circumstances no staff member will be transferred if he has 3 or less years of
service from his due date of retirement.
WAGE AND SALARY ADMINISTRATION
The personnel department effects prompts and correct payment of wage /
salary every month. The workers are paid their wages on the 7 th of every
subsequent month, while the mill staff and NTC staff are paid their salary on 30 th
every month.
CALCULATION OF NET PAY
Net pay is calculated as:-
Net pay = (basic pay +
Increment +
DA +
H.R.A +
Other earnings)
Grows pay:
Less: (PF+ESI +others)
: = Net pay
A worker should have worked 26 days in a month can claim his whole month
salary. For days not worked, a reduction in salary will be effected. Basic pay, DA,
H.R.A, are taken into account for reduction.
WORKING HOURS
Adult workers are not permitted to work more than 9 hours in a day
and 48 hours in a week. Since there is absenteeism in the mill, workers are
sometimes asked to work overtime. The wage given would be the rate of twice his
ordinary salary or rate of salary.
HOLIDAYS
The workers are not allowed to work in the unit on the first day of week
unless he has or will have a holiday or one of the three days immediately before or
after the day.
INTTERVAL FOR REST
The period of work in the factory is fixed that no period shall exceed
before he has an interval for the rest of at least ½ hour.
PROHIBITION OF EMPLOYMENT
No child who has not attained or completed his fourteen years is
allowed to work in the unit.
CANTEEN
The canteen provides employees with good food in a subsidized rate. The
canteen is managed by a co operative society. Registered as such, society may
include in the charges to the made food stuffs served as up to 5% on its working
capital employed in the running of the canteen. The charge per portion of the food
stuff, beverage and any other item served in the canteen shall be conspicuously
displayed in the canteen.
REST HOUSE
A rest house is in the company for the night shifters for their relaxation.
SPORTS AND RECREATION CLUB
This is for the relaxation of the workers. There are annual sports meet
conducted in every year. Under this mill there is a small library and reading room
which provides various news papers and magazines.
ALLOWANCES
National Textile Corporation provides allowances to the officers of the
mill. Vehicle allowance is also provided.
The mill provides quarters for both officers and workers. There is 58
quarters and for those officers who do not avail this facility is authorized to get
HRA.
BONUS
Bonus is given to workers at the time when company is in profit. Those
workers who earn salary up to Rs.10000/- is eligible to get bonus.
E.S.I
Free consultation and medicine is being provided to the workers by ESI.
PROVIDENT FUND
The corporation maintains and contribute to PF called Employees
State Insurance PF in respect of its employees other than those whose
service are placed at the disposal of the corporation by the Central or State
Govt.
CONTRIBUTORY PF
For this type of PF, the percentage of salary is compulsory deducted from
the workers salary and the same percentage of amount is deposited by the
management also. Presently PF pension is given from percentage of amount
contributed by the management. 10% contribution is made by the management out
of which 8.33% is given to pension fund.
WELFARE FUND
A welfare fund is established and maintained by the workers. There is a
worker’s committee for maintaining this fund. The committee decides the
percentage of contribution. One percentage contribution is made by the
management. The amount is invested in a bank and at the time of retirement, the
employee is provided with that lump sum amount.
GRATUITY FUND
Gratuity shall be payable to an employee who has rendered continues
service for not less than five years. The gratuity application must produced by the
employee before thirty days of the date of scope of retirement gratuity calculated in
the way that for one year service 15 days salary is given.
WORKERS COMMITTEE
A committee is constituted consisting of General Manager, Factory
Manager, Personnel Manager, Finance Manager, Three representatives of
workmen to be decided by CEO/ General Manager in consultation with the trade
unions concerned in any manner as per the local conditions in the mill, The
chairman of the joint management council of the mill.
FUNCTIONS OF THE COMMITTEE
1. Production programme
2. Utilization
3. Efficiency
4. Productivity
5. Quality of products
6. Cost reduction
7. Improving profitability
8. Purchase
9. Sales including disposal
PARTICIPATION IN MANAGEMENT
The management has good relationship with the unions-various union
functions as a term in care of major matters. They understand the problems faced
by the management and trying to adjust with the conditions of the mills.
The majority of the unions are of the opinion that the management is not willing to
consider the problems and hazards faced by the workers.
They blame the management for its efficiency in dealing with the day to day affairs
of the employees.
GRIEVANCE HANDLING PROCEDURE
THE CONTIGENCY PLAN
1. WATCH ON LABOUR SITUATION
The shift supervisors, Asst. Spinning masteries and spinning masteries will
keep a close watch about the labor and have their own arrangements and sources to
get inform on day today development of labor situation. Impute inform will be
directly and confidently passed on to the GM by the quickest possible means.
Labor welfare office will also collect informations by conducting union
representatives and pass on the relevant information confidently to the GM. Once
and above this the GM will also find sources to collect information directly to keep
him abreant of the developments in the mills. Relevant information will be passed
on immediately to NTC Banglore.
GM will convene meetings of the officers and
supervisory staff members at regular inlivals to discuss the labor situation.
2. PROMPT ARDRESSIAL OF THE GRIEVANCES OF LABOR
The probable grievances and demands of the employees are grouped for
the convenient handling of re dressed steps.
TRADE UNION
Trade union in the company is working very efficiently and in a very
healthy manner. The management able to maintain a good relationship with the
members of the trade union. Presently there are 3 trade unions including
INTUC
AITUC
CITU
Though there are some other unions they are not accepted but the management
only the members of 3 unions are allowed to be presenting representatives while
meeting are conducted.
The mil has not faced any serious strikes or lock out for the past years.
TIME OFFICE DEPARTMENT
Personnel department controls another department called time office
department. This department maintains the entering and living time of workers.
As said earlier the mill is now working under 3 shifts, 24x7 and thus it
is a tedius work maintaining the record of around 393 workers. There for the time
office deratment is having a strenuous job of keeping and maintaining all the
relevant records of hours of work of each individual.
All the workers are provided wit attendance card. This would
be given at the time of joining. The colour of each card varies with shift and
department. The worker has to give his bin card to time officer before starting the
shift. The worker will get back a card when he leaves the factory.
Head time keeper is in charge of time office. The time keeper
after collecting the bin card of the workers, calculate the shortage of labourers and
allot over time. There are senior assistants and clerks to help the head time keeper.
FUNCTIONS OF TIME KEEPER
The head time keeper has to collect the attendance and other details for
calculating monthly wages yearly bonus and other allowances and deductions. He
also calculates the terminal benefits such as gratuity, leave salary to be paid, salary
etc to workers on retirement.
The time officer maintains certain records including
2. Muster roles shift wise
3. Wage register
4. Service records
5. Over time register-daily & weekly
6. Register of apprentices with or without pay
7. Leave with wages
8. Fines
9. Gratuity & PF
10. ESI
11. Accident register
12. Overtime register etc
SECURITY OFFICE
The smooth functioning of the mill has direct connection to the security of
the company. The main objective of the security in this mill is the protection of:
1. Personnel
2. Information
3. Materials
4. Attendance leaves
The mill is protected by a boundary wall, with a sigle entrance . the
security office is near the entrance with 24 hrs working condition. The security
section consists of security inspector and under him one head security guard and
two security guard in shift.
The security office is responsible for the safety of the mill, its properties and
raw materials and finished goods. They also look after the transport of materials
both inward & outward. They verify the incoming materials with the bill similarly
the outgoing. The vehicles and the materials are controlled by pass system and
checked clearly. Identity card is provided to the workers; belongings are checked
or searched while going out.
The security section has to keep certain records including:
Goods movement in & out register.
Vehicles movement in & out register
Visitor’s resistors, which includes name, purpose of visit, time of visit.
CHAPTER –V
ACCOUNTS DEPARTMENT
ASSISTANT MANAGER (A/Cs)
Cotton Accounts
section
Sales Section Dispatch section
Accounts department is headed by Assistant Accounts Manager, under him there is
an accountant Sr. Asst (Sales) and a Sr. Asst (Cotton). To assist the accountant
there is a cashier, senior assistant and an assistant. Proper register and records are
maintained in this department.
Sales account, raw materials accounts, stores accounts etc are
maintained in this department. Cash book, general ledger, sub ledgers are checked
once in a month. Here four books are maintained:-
1. Stock book
2. Cash book
3. General ledger
4. Parties Balance sheet
DISPATCH
Dispatch section maintains the communication system both inward and
outward. The correspondence coming into the mill is entered into an ‘inward
register’. The departments of which they are meant are identified. The outward
letters are also entered into a register called ‘out ward register’.
Besides the correspondence, the Sr. Asst (Dispatch) maintains
telephone communication. The outward calls are marked in a particular register
which is meant for that purpose.
Cashier Assistants
RAW MATERIAL SECTION
A cotton clerk is given the charge to maintain all the records relating to the
purchase of raw materials. The cotton is purchased from the Cotton Corporation of
India (CCI). The quality of the cotton is tested by NTC. The cotton is purchased
from pvt parties by considering the price and quality of material. The sample is
sent to the Central Testing Laboratory (CTL) to ensure the quality. The polyester
material is purchased from Reliance and Viscose from Grasim industries mainly.
SALES SECTION
Senior Asst (Sales) is in charge of this section. Sales are also centralized.
The head office is the authority for the sales of yarn. The rate is also fixed by NTC.
A committee called yarn price committee is coordinated by the central authority
and they fix the rate for selling the yarn for every week.
At present, the mill is under a continues loss, the main reason being the
high price of raw material and low selling price. The profitability is highly
dependent on the market conditions.
NATIONAL TEXTILE CORPARATION
BALANCE SHEET AS AT 31st march 2009
Unit: VIJAYAMOHINI MILLS
Particulars Schedule no
As at 31. 3. 2009 As at 31.3.2008
I. SOURCES OF FUNDS
a. Share holders fund
I. Share capital/head office fund 1 24363000 24363000
II. Share pending allotment
III. Advance against equity
IV. Reserve &surplus 2 1983869.29 1983869.29
b. Loan fund
I. Secured loan 3 2863180.39 5288706.55
II. Un secured loan 4 511271722.67 435272182.45
c. Deferred tax liability
Total 5 40,481,772.35 466,907,758.29
II. APPLICATION OF FUNDS
a) Fixed assets 5
i. Grows block 2 28,442,121.38 101,799,085.21
ii. Less depreciation reserve 67,231,597.44 57,824,021.27
iii. Net block 161,210,523.94 43,975,063.94
iv. Capital WIP 9,889,907.554 8,359,216.87
Total 171,100,431.48 52,334,280,.81
b) Investments 6 7500 7500
c) Currentasst,loan&advances
i. Inventories 7 11,340,897 55,216,970.76
ii. Sundry debtors 8 5,501,621.08 7,296,221.55
iii. Cash and bank balances 9 108,913.40 82,152,232.40
iv. Other current assets 10 2,465,041 3,983,480.50
v. Loans & advances 11 15,125,601.88 17,048,628.37
Total A 34,542,074.36 165,697,587.58
Less:
Current liabilities and provisions
Current liabilities 12 31,538,128.25 64,210,179.15
Provisions 13 26,092,353 24,172,998
Total B 57,630,481.25 88,383,177.15
Net current assets/ liability A-B (23,088,406.89) 77,314,410.43
Miscellaneous expense
Deferred tax assets
d) Inter,suboffice current a/c
14
e) Inter,unit,Current a/c 14 A (7,672,860.87) 15,939,013.83
f) Profit & loss a/c 400,135,108.63 321,312,553.22
540,481,772.35 466,907,758.29
NATIONAL TEXTILE CORPARATION LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING 31ST
MARCH 2009
PARTICULARS SHEDULE NO
CURRENT YEAR
PREVIOUS YEAR
Income
Sales 15 97,826,043.90 141,633,223.60
Inter Sub office sales/income 16Inter unit sales/income 16 A 205,402
Job charge other income 17Increase/decrease in stock 18 5,009,125.82 3,840,085.06
19 (16,913,338.74) (22,793,828.54)
TOTAL 86,127,232.98 122,679,480.12
Expenditure
Consumption of raw materials 20 47557750.48 75691001.12
Inter sub office Purchase/Expense
21
Inter unit Purchase/Expense 21 APurchase Finished/semi
finished goods
Employees remuneration & benefits
22 38453449.30 38984435.66
Manufacturing, Administrative, selling and dist. Exp
23 29606003.17 35529042.49
Finance charges 24 32483272.73 24135318.89Provisions 25 29533.74 65631.53
Depreciation 11974372.25 21,42784.84
Debts written off
Total 160104381.59 176548214.53
Profit/Loss for the year (73977148.61) (53868734.41)
Prior period income(expense) 26 (365103) 1832208.37
Extra ordinary items 27 (4480303.80) 500644201
Provision written back
Reserves written back
Profit/Loss for the year before tax
(78822555.41) (47030084.03)
Income tax
Tax under MATFringe Benefit tax
Wealth Tax
CHAPTER - IV
CONCLUSION
The NTC has given a go ahead sanction for the modernization of the mill
by comparing the performance of the mill with other units. Also NTC is going
ahead with a policy of closer of Non perfoming companies and giving all out
support to the better performed companies. NTC has closed down many units
under this policy and out of 116 units, only 52 units are now working. Both
management and workers are of hope that by 2020, the company could very well
profitable organization.
The organizational study under taken gives an insight in to the
function of the VIJAYAMOHINI MILL. The structure of the mill is well planned
and organized. The management is having a good control in the day to day
functioning of the company. However it is not in position to control the workers
absenteeism. Due to various reason though there is no much labor problem due
to trade union this unhealthy working conditions in the factory, ie heavy dust
condition was a major health problem for the workers. The modernization
program will be an answer to the major problem.
The financial position is also not sound due to the loss incurring by the
mill. The modernization programme will be an answer to this problem also to
some extent, the quality improvement if undertaken will boost the export and their
by improve the financial position.
The study has helped extensively to understand the various function
and problem being faced by a manufacturing company.