Garden Silk Mills Ltd

Garden Silk Mills2011 Ltd.

V.B.SHAH INSTITUTE OF MANAGEMENT

DECLARATION

I, JASMIN G KHAKHARIYA, here by declare that the project report entitled four area of GARDEN SILK MILLS LTD. Under the guidance of Prof Chintu thakker submitted in partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration to VEER NARMAD SOUTH GUJARAT UNIVARSITY, SURAT is my original work research study carried out during 19th April, 2011 to 19th June, 2011.

9V.B.SHAH INSTITUTE OF MANAGEMENT

ACKNOWLEDGEMENT

I take the opportunity to express the feeling of gratitude towards South Gujarat University for keeping Industrial training as part of Bachelor of Business Administration Course.

It is an occasion of great pleasure and a matter of deep felt personal satisfaction to present this complied statement of the project work undergone at a company of great esteem GARDEN SILK MILLS LTD. First, we believe that full credit of having completed the prescribed training should to the coordinator of PROF.V.B.SHAH INSTITUTE OF MANAGEMENT for making available all facilities in fulfillment the requirement for our project report.

The project would have been possible through out the experience, guidance and supervision of Dr. Vipul vyas has potentially and critically gone through the subject matter. I wise to place on recode the operation given us by Mr. Bipindhai Modi & Kamalesi Deshai for making capable of teaching new things, which are helpful in our practical life to the staff of the GARDEN SILK MILLS LTD. For give a practical knowledge and help me for satisfactory completing our project report. I take this opportunity to thank all those who directly or indirectly were instrumental in the completion of my project work.

I am also thankful




PREFACE

As B.B.A. student, I have to undergo and two months training programmed in any company. I got chance to undergo training in GARDEN SILK MILLS LTD. This introduced us new aspect and practical knowledge about finance department, marketing department, human resource department and production department of GARDEN SILK MILLS LTD.

In class room we have got theoretical knowledge about finance management, marketing management, human resource management, production management but in GARDEN SILK MILLS LTD. have to apply it on practical base.

During our training I found that company has good reputation and strong position in the market its Establishment.


CONTENT

No.

Particular

Page No.

1)

Profile of the company10

> > > >

History of company Corporate information A glimpse picture of industry (overview) Organization Structure of the company

11 13 16 17

2)

19

Marketing Department Structure of Marketing Department Marketing Environment (competition) Consumer buying behavior & Industrial buying behavior Product Mix Product Life Cycle (PLC) & Marketing Strategies Packaging Pricing Strategies Channels of Distribution & integrated Marketing Channels Communication mix20 21 23 26 29 31 32 34 38


3)> > > > > > > > > >

Human Resource DepartmentActivities of Personnel/HR Dept. . Recruitment & selection Process Human Resource Planning Training & Development Promotion & Transfer Polices Performance Appraisal System Wages & Salary Structure Employee Welfare

39 41 42 48 52 54 55 59 62 66

Employees Turnover Human Resource Audit & Industrial relationship67

4)> > > > > > > > >

Production DepartmentActivities of production Dept. Process Layout / Product layout Some Definition of the Fiber, or Yarn Process of manufacturing Design Department Production facilities

68 69 71 72 73 78 79

Technology use 82 Quality Control Research & Development Dept. 84


5)> > > > > >

Finance DepartmentIntroduction Cash Budget & Flexible Budget Sources of funds Working Capital Ratio Analysis with Interpretation Balance sheet & Annual General Report

86 87 88 89 91 96 99

6)

SWOT Analysis

101

7) 8)

CONCLUSION

106

Bibliography

108





HISTORY

OF

ORGANIZATION


The origins of the business go back to 1920 when Mr.Amichand shah installed the first hattersley looms in Surat. The company belongs to garden verily group, which is one of the preceding manufactures of synthetic textiles in the country. Since 1920 the company expanded not only by increasing the production capacity and workforce of the business but also by pioneering new material and processes. To the early beginning of the art silk industry in Surat, GARDEN Silk the company having Factory, as it was then named, manufacturing viscose becomes leader in jacquard fabric for years to come.

The managing director of Garden Silk Mills Limited, Mr. Praful Shah is the youngest son of the founder, Dr Amichand Shsh. He gained the degree in engineering from the university of Stanford in the USA in 1965 after which he joined the business prior in the date. He even extended the activities of the company to include processing cloth and even processing cloth. As a result of this the company was able to supply finished textiles for the first time.

This move in the early 1970s conceded with the opening of the first retail shop in Surat. The extension of the policy of vertical immigration into the retailing sector had advantages of uniform pricing, close market monitoring, and communications better company manufacturer and consumer and above all the exerting downward pressure on the final selling price. The dedicated retail network now extends to some 293 authorized outlets.

In 1975, the company recruited Fine Arts GARDEN from leading institutions and an Art studio was set up. The company started introducing its own designs and supplied these designs in the market. Prior to this, the designs produced had been a function of customer demand and from this point onwards, the emphasis changed the design impetus from manufacturers.


In the late 1970s, the company started exporting its products to European Market, Given the size of the domestics market, the proportion of the product that are exported remain low at approximately 2%. The company is in the process of further developing market in Africa, Central and Eastern Asia.

In the 1980s, the company developed a new site-Vareli, some 12kms away from Surat. This has become the manufacturing plant and investment of more than 2 billion has been made. Most of this expenditure has been targeted at the expansion and modernization of plant and equipment, particularly in the company having and yarn preparatory sections. As a result, the company today has one of the most modern and sophisticated textile plants in India.

The company has further its policy of vertical integration by setting up a new plant, also near Surat, from which it will manufacture polyester filament yarn, one of its principle raw materials from polyester chips.

Today, the company is one of the largest manufacturers in India of high fashioned, premium quality, dyed and printed textiles fabrics, both polyester and viscose comprising a range of chiffon and georgettes, chupbrag and crepes and faithful ladies, fashion as the company as Indian sarees, The company also manufacturers an exclusive range of pure silk and cotton fabrics. The fabrics are marketed under the famous names GARDEN and VARELI.


CORPORATE

INFORMATION

Bored of Directors: 1. PRAFUL A. SHAH 2. ALOK P. Shah 3. SHILPA P. SHAH 4.SANJAY S. SHAH 5. SUHAIL P. SHAH (Chairman & Managing Director) (Joint Managing Director) (Executive Director) (Executive Director) (Executive Director)

REGISTERED

OFFICE:

Sahara Gate, Surat 395010. Tel: (0261) 2311197-98, 2311615 Fax: (0261) 2311029/502 E-mail: [email protected] http:/ www.gardenvareli.com

CORPORATE

OFFICE:

Manek Mahal, 90 veer Nariman Road, Church gate, Mumbai 400020 Tel: (022) 2287 3117-19 Fax: (022) 2204 8112


AUDITORS:

Messrs Natvarlal Vepari & co. Charted Accountants, Surat

PLANTS:

1. Vareli Comliex, Village Taluka Palsana, Dist. Surat 394327 Tel: (02622) 271241-47 2. Village Jolwa, Taluka Palsana, Dist. Surat 394305 Tel: (02622) 271287-89

Company Ranking

No. 1. 2. 3.

On the basis Income Net Profit Net worth

Rank 204 436 311


Bankers

1. Bank of Baroda 2. Allahabad Bank 3. State Bank of India 4. Bank of India 5. State Bank of Patiala 6. Corporation Bank 7. Union Bank of India 8. Indian Bank 9. Landesbank Baden-wurttember


A

GLIMPSE PICTURE OF INDUSTRY

(OVERVIEW)

A one-time leader in polyester sarees and dress materials under the brand name Garden Vareli, the textile company is now focusing on yarn and chips, demand for which has risen in domestic and global markets. Garden Silk Mills will invest Rs 350 crore for the expansion, said a company official. According to the capex plan, Garden Silk Mills will double the existing capacities of 700 tones per day of polyester chips, 300 tones per day of partially oriented yarn (POY) and 120 tones per day of polyester textured yarn (PTY). The company will increase the share of exports in its total turnover from 5-10 per cent to 30-40 per cent, the official added. Currently, polyester yarn and chips form 95 per cent of the company's total production. Garden Silk also manufactures filament yarn. Meanwhile, the company has decided to maintain a status quo in the capacity of polyester fabric and finished products such as sarees and dress materials at 50 lakh meters per month and 25 lakh meters per month, respectively. Post-expansion, Garden Silk Mills is expecting its turnover to rise significantly from over Rs 400 crore that the company registered in the financial year 2007-08.


ORGANIZATIONS

STRUCTURE OF THE COMPANY

Chairman & Managing

Finance Director

Marketing Director

Import Export Director

Production Director

Personnel Director

Whole time Director Finance, Account

Whole time director Advertisement & Publicity

Director Technical Weaving Activity

Director Technical Yarn Preparatory

(G M) Finished Good

Marketing consultant Yarn MKT.

Chief Executive POY plant, Jolwa

Staff


CATEGORIES

OF

SHARE HOLDER:-

CategoryPromoter Mutual Funds Bank Financial Ins. & Insurance Foreign Bank Privet Bodies Corporate Nris Indian Public Others Total

No. Of shares held18914384 3673342 640323 1722331 2156290 1321114 9801077 60699 3290560

Holding Strength49.39 9.60 1.67 4.5 5.63 3.45 25.6 0.16 100.00

Marketing Management9V.B.SHAH INSTITUTE OF MANAGEMENT


STRUCTURE

OF

MARKETING DEPARTMENT

General Manager

Deputy General nager

Senior General nager

Assistant Manager

Programmer anager

Dispatch


MARKETING ENVIRONMENT (COMPETITION)

Competitor mean the person who is making the product which is similar t6o ours. Means that product can be a substitute for the customer. For the success of all the company they must the knowledge about all the competitors. They always keep on eye on every movement of the competitors.

E.g. The Company says that Pepsi Company always watches the movement of the cocacola company. They must have to watch their competitors to survive in the market.

In that way the GARDEN JOLWA have also its competitors. So, they have to be very careful about their competitors. On the one side there are seven lacks small and big competitors of the company in industry foe different activities purpose situated in Surat but on the other side there are no any competitors of the company for whole activates purpose of the company because the company passes maturity stage in the product life cycle, in which one of the king is the company. One of the biggest competitors is the RELINCE. There are also other competitors, but they are small.


The GARDEN Company has two types of competitors, which are following hear: 1. on the basis of selling yarn: > > > > > > > Gupta Synthetics Indo-Rama Synthetics JBF industries Modern petrofils Nova petrochemicals Century Inka Chideepal

2. On the basis of selling clothe Parag Textile Surbhi textile Laxmipati textile Sayba textile

So we can say that there no competitors of the company for whole activities like producing yarn, fabrics etc, but seven lakes competitors for different activates.


CONSUMER

BUYING BEHAVIOR

& INDUSTRIAL

BUYING BEHAVIOR

1. Defination: Consumer buying behavior is a study of how individual a group & organization select, buy, use and dispose of goods, services, ideas or experience to satisfied there needs and wants.

2. Process of CB:

The company can follow this process of consumer buying behavior:

I. PROBLEM RECOGNITION:

The buying process starts when the buyers recognize a pa problem or need triggered by internal. Our companies try to recognize the problem of the customer like which kind of product customer want & which types of services costumer want at the time of purchasing the product.

II.

INFORMATION SEARCH:

The consumer often search for limited amounts of information the consumer try to collect information every medium like pamphlets, magazine, friend, family, Advertisement, etc. so that company use


these kind of medium. Mistily company uses the medium of magazine, pamphlets.

III.

EVALUATION

OF ALTERNATIVES:

Consumers evaluate different types of product for the buying. So that the company can attract consume through advertisement.

IV.

PURCHASE

DECISION:

In this stage, consumer may make up to five sub decision like brand, dealer, quantity, timing, and payment method, So that the GARDEN Company try to maintain these all five things.


INDUSTRIAL

BUYING BEHAVIOR

The GARDEN Company attract their industrial buyers through some medium like Money control, NDTV, the companies own site etc. There is no special activity done by the companies marketing department to attract industrial buyers. The company sells its industrial product only limited business, which is deal with the company. And the company sells yarns only fix quantity, which is not use in the company to produce cloth. Hear give the names of some small textile unit, which is purchase yarn for company in current time.

Name of Industrial buyers of the company

No. 1. 2. 3. 4.

Buyers Nakoda Textile Industries Ltd. Mohit Textiles Ltd. Tawalwasia Yarn Prasant Textile

Person in Charge Badudhai Narayan saboo Sumitdhai Vallabhbhai

Product Polyester Chips Polyester Yarn Polyester Yarn Polyester Yarn


PRODUCT MIXA product mix is the set of all products and items a particular seller offers for sales.

The GARDEN JOLWA have also many kind of product related to POY. But the main product is the POY. This company produces all the type of different goods according to the demand of those goods. The company has the great market after the RELIANCE. The list of some product of the company is as follow:

1. POY (partially Oriented Yarn) 2. Textured Yarn. 3. Draw Tex Yarn. 4. Full Draw Yarn 5. Draw winder

The Garden Company also has to produce many of Products in fabrics. We show the product mix of the company, Hear show the companys product width, Length & Depth of the product mix.

1. Width:

The width of product mix refers to how many different product lines the

company carries. The Garden Company carried four product widths.

2. Length: The length of product mix refers to the total number of items in the mix. The Garden Company Carried 17 Lengths.


3. Depth: The Depth of a product mix refers to how many variants are offered of each product in the line. The Garden Company has six Depths for each product length, which is following hear.

1. Orient 2. Sixties Grams 3. Brasso 4. French crapes 5. Kasturi


VARIETY

OF

PRODUCTS:

Products

Chips

Sari

Marble Cheeks

Dress Materials

Polyester Chips

Nara Chiffon American Chiffon Seta Chiffon Marble Chiffon Peach Silk Crepe Lenens

Jacquard Cdecling

Decline Brasso Heary out mation Uetra satvarlo Lapur Black-perl Alfine & Chera

Seta Creoratte


PRODUCT

LIFE CYCLE

A companys positioning and strategy must change as the product, market, and competitors change over the product life cycle. To say that a product has a life cycle is to assert four things.

1. Products have a limited life. 2. Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. 3. Profits rise and fall at different stages of the product life cycle. Product requires different marketing, financial, manufacturing, purchasing, and human recourse strategies in each lifecycle stage.

There are four stages of Product life cycle like: 1. 2. Introduction Stage: the stage where company introduce itself in the market. Growth Stage: In this stage, a product of rapid market acceptance and substantial

profit improvement. 3. Maturity Stage: In this stage, sales growth of product is slowdown, the product has

achieved acceptance by most potential buyers. Profits stabilize or Decline because of increased competition. 4. Decline Stage: sales show a downward drift and profit erode.

The GARDEN Company has suffered in the maturity Stage of the product lifecycle. According to maturity stage position, the companys products like Jaquard viscose pallu material sarees, dresses etc cover large market but nowadays the customers of the company want innovation in the companys product. So the GARDEN Company needs to modify its Products and it Produce Jaquard Brasso.


MARKETING STRATEGIES

OF THE COMPANY

The GARDEN Company has suffered in the maturity Stage of the product lifecycle. So that the company follows maturity stages marketing strategies which are the following hear:

1.

In this stage, the company needs to diversify brands. So that the GARDEN Company changes their brand name Garden Vareli to only GARDEN.

2.

The company needs to change product models. And Product quality Jaquard viscose pallu to Jaquard Brasso.

3.

In this stage company also follow the competitors price and also reduce the Price of the product. Nowadays the GARDEN also fellows these strategy.

4. 5.

The company increases its retail shop in the market like 25 shops.

Garden operates through franchisee operations with outlets in about 104 locations across the country and six company-owned showrooms.

6. 7.

The company holds 20-day discount sales twice a year at all its outlets. Gardens earlier target customers were working women who were urban, educated and fashion conscious, in the 18 to 25 age bracket.


PACKAGING

Packaging is the buyers first encounter with the product & is capable of turning the buyer on or off.

The GARDEN Company use primary types of package to sell its products. The Company can use these types of strategy of packaging like:

1) Single suit packing in Plastic bag 2) Single suit inboxes (plastic Boxes or paper boxes)

SIZE

OF

PACKAGING

1. Single packing in plastic bag packaging: 2.78mtr is maximum size (general size) 2. Single packing in boxes packaging: 2.0, 2.28mtr

While packaging the sarees, the company uses quality-packaging materials like polythene sheets and others. This assists in ensuring the safely of the end products during the transits period. Our entire packaging process is conducted under the supervision of our experienced packaging personnel, Further; the company has association with various transportation and logistic agents, which helps us in smooth and prompt delivery of the range to the final destinations. This ensures the timely delivery of our consignments to the clients.


PRICING STRATEGIES

Price shows the value of the companys product. The company itself decides its product price considering various factors. The price of GARDEN Company is less than the Reliance and which is the second highest price in the market. These two competitors play a major role in the market according to their price of the products Pricing is just not a number on a tag or an item. It represents the product in a very large way.

Pricing policy of the company usually stable, it does not keep on fluctuating with time and the price is decided after taking into consideration the price of its competitors.

According to the company the price of the finished product is decided on the basis of the price of its raw material. Say for example if the demand of petroleum is increased or decreased then it consequently affects the price of the raw material and also the price at times depends on the demand of the product also.

The price of the company changes, when the yarn market is in boon period the price tend to be high and vice-versa.

The Garden Company follows this pricing policy, which is show here.

PRICE=COST+MAGIN+BRAND EQUITY


This Criterion is called forward pricing. However, In Cutthroat Competition, Garden has Adopted Backward pricing, I.E. First of all, they determine the Price at which it can be sold having deducted the required margin from the basis of which it achieves the cost. Then it strives to reach the determined cost. It assists the company in Effective cost control in reducing Wastage

.

For Wholesome Customer, There are two types of discount. That is trade discount and cash discount. Garden has motivating discounting policy rather than threatening one.

1. To Pay the bills in 30 days or to pay 2% interest after due date. 2. To pay the bill at last in 60 days and if you pay bill a month early you will get 2% discount.

Generally, the payment period of Row material as well as credit period for finished products is 60 days due to competitive Market However, It is not Rigid; It Changes As per the Demand-Supply position of the market of a particular product.


CHANNELS

OF

DISTRIBUTION

AND

INTEGRATED MARKETING CHANNELS

There is usually a large channel of distribution, which includes from producing a product to sell it to whole sellers and the whole sellers give it to retailers and finally retailers sell it to consumers. This distribution network is for the consumer product. The main product of the company is POY, which is the industrial product, and the distribution network of the company is very simple and it is not so complex. In this network there is only one person who is known as DEALER is between the producer and the customer. The company mainly deals with the dealer. The dealer sells the product to the industrial customer and he mainly acts as a guarantee on behalf of the customer for the payment to the company. The sales manger personally does not know any of his customers but he just knows the name of their firms who consumers his product. Thus, we can say that the dealer has a very important role to play here.

Simple channel of distribution is following hear:

Producer

Dealer

Customer

Some names of dealers are as follows: 1. Gheewala Brothers. 2. Ekta Textiles. 3. Amidhara Textiles.


The distribution network is look like as follows:

Packing Department

Deale Spot Sales

Depots

General Shop

Authorized Retail shop

Authorized Retail Counter

Company Shop

Consumers

Consumersa

consumers


MARKETING

NETWORK ENCOMPASSES

Globally, GSML has product presence in countries that includes U.K., France, Spain, Portugal, Greece, Middle East and Gulf countries, the U.S.A., Australia, Singapore, Thailand, Hong Kong, Mauritius, South Africa and Brazil etc. The companys network encompasses in over 65 cities in India. 68 dealers 18 company owned depots 293 Retail outlets

View Garden Depot Locations:Name Address: Garden Silk Mills Ltd, M-1270-71, Ground floor Surat Textile Market, Ring Road City State: Dealer Type: Surat Gujarat Depot


VIEW GARDEN RETAILER LOCATIONS:Name: Address: Garden Vareli Retail Shop, Shop No. 26/28, Bombay Market, Umarwada, City: State: Dealer type: Surat, Gujarat Retailer

Name: Address:

Amber Main Road, Limda Chowk, Opp. Chhakkapir Galli,


COMMUNICATION

MIX

There are several platform of communicate with customer, which is live Advertising, Sales promotion, Public relation, Personal Selling, Direct marketing.

The Garden Company uses several platforms to attract the customer like Advertisement, Sales promotion, direct marketing. These all are the medium in which company communicate with their customer.

1. Advertisement: Company Give advertisement in the news channel likes CNBC, NDTV (for selling POY) & radio (My FM), Internet, etc.

2. Sales Promotion: Company Also use these plat form to attract the customer, after some time company give discount of there customer. In current date the Company gives 40% discount for its loyal customer in Bombay

3. Direct marketing: Garden Company also focus on the online marketing for its business customer to direct sale the yarn or fabric through its sites

The Garden Company also publish magazine during the Dipawali time to attract the customer

HUMAN

RESOURCE

DEPARTMENT9



INTRODUCTION

Human resources have very much important in every organization. Human resources are the backbone of industry. The policy of the GARDEN SILK MILLS LTD. Suggest as:

To get customer satisfaction by providing a very high standard of products by including every employee.

GARDEN Company follows the old concept of the human resource like personnel Management. The company does all activates of the personnel department and the company has not different department of personnel management but Different departmental heads like Marketing head, Finance head, Production head do human resource activities in their department.

Definition of personnel Management:

Personnel Management has that part of management concerned with people at work and with their relationship within an organization. Its aim is to bring together and developed into an effective organization of man woman who make up an enterprise and having regard for the company being of individual and of working groups to enable them to make their contribution to its success.


ACTIVITIES

OF PERSONNEL/

HR DEPARTMENT

1. Organization planning 2. Human Resource planning Job Analysis Job Description Job Specification 3. Acquisition of human resource 4. Managing Performance 5. Motivational activities 6. Training & Development Activities 7. Compensation and Benefits 8. Health and Safety Provision 9. Organization Development 10. Encouraging participation in management 11. Grievance procedure etc.


RECRUITMENT &Recruitment:

SELECTION

PROCESS

Recruitment is an important part of an organizations human resource planning and their competitive strength. Competent human resources at the right positions in the organization are a vital resource and be a core competency or a strategic advantage for it.

The GARDEN Company is recruiting its workers through internal Recruitment and professionals employees through External Recruitment Source. The companys recruitment process is not long and systematic. In the company, Different departmental heads recruits personal in their department on the basis of the need of the personal.

Here show the definition of recruitment:

It is the process of finding & attracting capable applicant for employment. The process being when new recruits are sought and ends when their applications are submitted, the result is a pool of applicants from which new employees are selected.


Process of the recruitment follows by the GARDEN Company:

1. Recruitment Planning: The companys planning involves translation of likely job vacancies and information about the nature of the jobs into a set of objectives or targets. In sort, company decides how many people are needed and what types of people are needed.

2. Strategy Development: After deciding how many and what types of people are needed, the company also decided where are finding. In these decisions, company company used decided existing to employees recruit make to like capable for the work or hiring employee in the market. The many media personal Advertisement in newspaper and online. It also recruits personal through internal media like present employees through transfer & promotion, previous application etc. hear give the companys source of recruitment through advertisement in Gujarat newspaper.


3. Searching: The company takes some source of action. 4. Screening: Application received in the response from advertisement is screened and only applicants are called for an interview. The reason is reduce that application that is visibly unqualified for the job and to save time and money

Evaluation & Control: Evaluation and control is necessary as consideration cost incurred in the Recruitment process.

SELECTION:After completing recruitment, selection process can be start on the basis of recruitment application. First of all temporary job can be offer then after training given to employees during these induction program can be bone through this new employee introduce with company and other detail of company given to new employee then training given and then after probation basis job offer i.e. part of temporary job with some condition can be offered.

Definition:


It is the process of differentiate between company applicants in order to identify (and hire) those with a greater like hood of success in a job. Selection process:

The company can follow this process of the selection. This process diagram can be following hear:

The company normally selects its employee through simple way but company use above process when it needs professional employees who have high qualification. Generally departmental head select the candidates who are suitable in their department but the time of the select professional candidates, the company invited selection committee to selection process. Hear following the steps of the companys selection process:

R

Preliminary Interview

j e

Selection Test

c t

Employment Interview

e d a

Reference and Background analysis

p p

Selection Decision

l i

Physical Examination V.B.SHAH INSTITUTE OF MANAGEMENT

c a n t

9

Job Offer

Employment Contract

Evaluation

PRELIMINARY INTERVIEW: When the application is meet the company can call the suitable applicant to courtesy interview or preliminary interview. And other not suitable applications are rejected. SELECTION TEST: The company can arrange different types of selection tests, which are suitable different category employees for selected applicant in preliminary interview. The company mostly takes attitude test, and personality test. Applicants who are not capable to give these tests are rejected. EMPLOYEE INTERVIEW: 9V.B.SHAH INSTITUTE OF MANAGEMENT

The applicants who are passing in selection test are told to give employee interview or final interview.

REFERENCE

AND

BACKGROUND

ANALYSIS:

After completing employee inters view, the company shows the reference of the applicant and qualification criteria. Normally company hires the person who has master degree, which is taken by applicant in south Gujarat University.

SELECTION

DECISION:

When

company

can

finish

check

the

reference

and

background checking the selection committees decide these applicants is suitable for company or not. If thy feel that applicant is not capable for company at that time they reject the applicant.

PHYSICAL EXAMINATION: Normally company cannot do this step but applicants which are related in production department at that time company can check physical capacity of the applicant. JOBOFFER:

In these step, the company can finally offer the job of the applicant.

EMPLOYMENT CONTRACT After select the best suitable applicant the company can deal with applicant salary, job timing etc. 9V.B.SHAH INSTITUTE OF MANAGEMENT

Educational criteria for Selection:

FOR MANAGER & SUPERVISOR: Manager possessing textile or production degree are employed to respective jobs in beginning the salary is RS.4500/-

For Temporary Staff: In the temporary staff level science gradates or diploma in engineering filed are selected their salary IS MINIMUM RS 10000/- AT the beginning.

For Labor: There is no need to any educational criteria for the Labor job in this job has experience and skill for the work their wages is given to them according to their daily wage system.

DOCUMENT RELATED

WITH

RECRUITMENT

AND

SELECTION: -

In GARDEN Company there are not so much document are kept of the recruitment and selection. In GARDEN they dont do this process on big scale. So, there are not so many documents are kept. But some document names are as follows: 1. List of applicant according to different types of job. 2. Ranking of applicants on the basis of their qualifications. 9V.B.SHAH INSTITUTE OF MANAGEMENT

3. List of the applicant who will be called for interview. 4. List of the rejected applicant for the future use. 5. List of the applicants who are selected for job.

HUMAN RESOURCE PLANNING

Human

resource

planning

facilitates

the

realization

of

the

companys objectives by providing the right number of personals. Below give the definition of the human resource planning:

Human resource planning includes the estimation of how many qualified people are necessary to carry out the assigned activities, how many people will be available, and what, if anything, must be done to ensure that personnel supply equals personnel demand at the appropriate point in the future.

HRP is following by the large companies, but in the GARDEN Company how they do HRP is show below:

Forecasting the demand of human resources:Forecasting refers to the estimation of the future demand of the employee. This can be done by some analysis. And to do analysis it considers some factors. There are mainly two factors, which are as follows:


1. External Factors: 2. Internal Factors:

External factors:A). Political, legal, social, and the technical changes:

The demand for certain categories of employees and skills is also influenced by changes in political, legal and structure of an economy. In the GARDEN Company, it has appointed the technicians and engineers during the last couple of years by taking into consideration the latest technology in construction, software etc. the company considers technology as a doublededged the companion. So, as a when the technology changes, the company will also recruit new technicians & engineers to cope with the technology.

B). Competition:

GARDEN Company is operating in a field where a large number of players are bent while cutting each others throat. In order to stay in a competitive market, the company has to LEAN by reducing their workforce. The company is planning better workforce as competition has so much increased in the market. On the other hand, the company is doing the company and also progressing smoothly so it will always look for people with critical skills.

Internal factors:

A). Organizational decisions.


In planning H.R., the company undertakes the strategic plan; it takes into consideration the sales and the production forecasts. The company is expecting higher demand of textured yarn and for this, the company has planned long-term plan. Moreover, the company is in search of people possessing requisite skills in next couple of years.

B). Workforce factors:

The demand for new job occurs because of retrenchments transactions, resignations, deaths and leaves or absence. The GARDEN behaves that due to past experience the rate of occurrence of all these actions by employees are predictable.

C). Forecasting techniques:

The manpower company forecasting techniques employed by the GARDEN Company are described below:

1. Experts forecasting: in the GARDEN Company, managers estimate future human resource requirements. Sometimes, the company also


appoints the experts to forecast human resources along with the managers experience and judgments, which gives the good effect.

2. Trend Analysis: The GARDEN Company is deciding or forecasting its H.R. needs through projecting past tends. Past rates of change can be projected into the future or employment growth can be estimated by its relationship with a particular index.

TRAINING & DEVELOPMENT ACTIVITIES

1. TRAINING ACTIVITIES

Every person who is the employee of the companies they need training without training person can not performs very the company so that every companies give training of its employees 9V.B.SHAH INSTITUTE OF MANAGEMENT

after sometime or newly select employee. Hear show the definition of the training:

It is the process by which employees learn knowledge, skill & attitudes to further organizational & personal goal

The GARDEN Company gives training to the employees who need after their work have been examined. And the training is given to those who are new in the organization. So the company gives training not to all but the few of its employees. The company gives the training not to all but the few of its employees. The company gives the training for about 1 year. The senior officer observes the employees.

INDUCTION TRAINING:

When the newly employees are recruit in the company at that time they have not knowledge about the work done by them but trainer give some basic knowledge about the work & working environment.

to receive and the company come the new employee when he first join the company and also give some basic information of company to the employee, so he starts his work soon and he aware about the companys environment as soon as possible


The GARDEN Company also does induction training. Some resouns for that are as following:

1. Workers become aware of companys environment. 2. The fear can be removed. 3. Workers become aware about the companys rules and regulations. 4. He came to know about the location of various plant and machinery.

INFRASTRUCTURE

FOR

TRAINING DEPARTMENT: -

Whatever the things and materials, facility required for imparting training: 1. Training room/ seminar room. 2. Board 3. Chair 4. OHP (over Head Project) 5. VCR, CD player 6. Television 7. Audio deck karaoke facility


8. Automatic slide projector 9. Computer with multimedia facility 10. Video projector demonstration for technical guidance 11. Picture and feature for illustration

PROMOTION & TRANSFER POLICES

Promotion:

Promotion may be understood as a transportation of an employee for a higher position in a same organization where he/she is get more salary, more responsibility, better working environment and some other facilities. To fill up the vacancy company have two option either it recruit the external person or place the able and experience person from company. Out of this Garden is applied second option. The aim behind this policy is to increase the moral and loyalty of employee to the company. Promotion can be for 6 month or 1 year. Managing director can sign the promotion order after recommendation by the personnel and administration department. Garden silk mill does the seniority base promotion.

Transfer: -


A transfer involves the shifting of an employee from one job to another without any specific reference to changing responsibility and compensation.

In Garden silk mills transfer is done if it is necessary for the organization. Some time transfer is done to help the employee. While transfer doing the skill of an employee is taking into consideration.

PERFORMANCE APPRAISAL SYSTEM

Performance appraisal may be define as a Process in which employee performance are measured in a systematic manner in relation to requirement of job where they doing work, on the basic of quality and quantity of output, leadership ability, Judgment skills, versatility, health etc. Performance appraisal held as a means of measuring

individual performance, developing there performance career growth and meet to the expectation of the company.


PROCESS

OF THE

PERFORMANCE APPRAISAL:-

Objective of the Performance Appraisal

Establish Job Expectation

Design an Appraisal Programmer

Appraise the Performance

Performance Interview

Use Appraisal Data for Appropriately


What to evaluate:

The first important step of the performance appraisal system is to determine which aspect of performance to evaluate. In the Garden use appraisal criteria are Traits, behavior and task outcomes.

Traits

Many employees are assessed according to their traits such as Personality, aptitudes, attitudes, skills ability. Traits are relatively easy to assess once a rater gets to know rates. But traits are not always directly related to job performance.

Behaviors

For many jobs, performance is so broadly defined or so conceptual in nature that it is hard to come up reliable performance 9V.B.SHAH INSTITUTE OF MANAGEMENT

measured. In such a cases. Desired behavior Patten of the company identified and assessed in the belief that such behaviors lead to successful performance. Such behavior-focused assessment encourages employee to adopt desirable behavioral Patten in the work force.

Task outcomes

When information about task outcomes is readily available, it is the most appropriate factor to use in evaluating performance. When an organization has clear and measurable goal as in case of sales force, this approach is applied. There is arise a problem if employee behavior are not directly related to the task out-come.

Who Evaluates?

The most common raters of performance are employees immediate supervisors, who are usually in the best position to know and observe the employees job performance. They are also responsible for employee work. As a result of working together over a long time with the same employee, the immediate supervisor may build up a fixed impression about each employee and use every time he or she has to evaluate performance.

Some company fined that subordinates are in a position to observe and evaluate their managers performance, especially when it comes to measuring effective management of their department. It should be happen that Accurate and objective assessment may not be obtained if employees are fearful is key to the successful use of subordinates for objective evaluation. 9


Other rater who are frequently used in some companies include peers, customer, and the employees them selves. Peers evaluate is particularly useful when team work are important to successful task performance. Customer satisfaction is vital to companys success and can be use in performance appraisal. Many companies is also systematically useful, collect when performance performance information from customer through interview and survey. Selfassessment especially appraisal is intended to identify the training and development needs of potential employees.

In order to avoid legal problem, companies must developed an appraisal system based on careful job analysis. They must give clear instruction to raters for completing evaluations and provide them adequate training if necessary.Analysis The Garden does not have structured performance appraisal system. Workers are simply

appraised by their seniors and are given the increment on the bases of recommendation of seniors.

WAGES & SALARY STRUCTUREWages refers the hourly rates of pay and salary refers to the monthly rate of pay, irrespective of the number of hours put in by an employee. Wages and salaries are subject to annul increment. The wages differ from employee to employee and it also depends on the nature of the job, seniority and merits. On the other hand


we can define salary as the amount of money paid to an employee monthly or yearly.

The salary structure of the company is as follows: Temporary Employee Probation Employee Permanent Employee RS 2500 & Other Incentives RS 3500 & Other Incentives RS 5000 & Other Incentives

The pattern of pay sleep

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Name and code of the employee Slip no. Attendance Leave. Absent Pay Days. Rate-basic and HRA Provident fund Employee state insurance Personal tax LIC Income tax Cash advances Mobile charges Net Payable


The company is maintained two copies of the pay slip. One is given to the employee and the company for its records keeps the other.

The attendance of the employees is taken everyday. The company gives attendance card to each of its employees and makes a register in order to keep records of the employees. When the employee enters into the company he signs in the register and when he leaves again do the same procedure and so in this way, the records are maintained in the GARDEN Company.

Details of salary is paid to Directors for the period ended 31st March, 2010

Name

Salary & Perquisites

Sitting fees

Commission


Mr. Praful A. Shah Mr. Alok P. Shah Mr. S. J. Bhesania Mrs. Shilpa P. Shah Mr. Sanjay S. Shah Mr. Rajen P. Shah Mr. J. P. Shah Mr. Yatish Parekh Mr. A. N. Jariwalw Mr. Sunil S. Sheth Mr. Madanlal Lankapati Mr. Anjan Mukherjee Total

67,50,000 45,00,000 7,94,820 7,58,934 31,50,000 12,68,460 Nil Nil Nil Nil Nil Nil 1,72,22,214

Nil Nil Nil Nil Nil Nil 32,000 Nil 46,000 42,000 25,000 5,000 1,75,000

1,75,00,000 1,25,00,000 Nil Nil 1,00,00,000 Nil Nil Nil Nil Nil Nil Nil 4,00,00,000

EMPLOYEE WELFARE:-

Definition:Any thing done for the comfort & improvement intellectual & social of the employee over and above wages paid by the company


Each and every company Provident Fund:

For provident fund, 12% is from the employees salary and company contribution. For unforeseeable requirement, the employee granted credit up to 30% of there contribution is provident fund.

House Rent allowances:

The company also provides the facilities out of the working areas. The company specially arranges House Rent Allowance for the employees have to come from distant cities. This allowance is meant for new employees for the period of 240 days is beginning only.

Loans:

Advance company loans, Society loans and social contribution are also provided directly.

Pension:

The Employee share of contribution is siphon from salary and 12% it is transfer to A/c No. 10, which is known as pension.

Medical Expenses:


Medical expense is 8.33% of total one-month salary provided in a month of March and December consecutively.

Life Insurances:

The Company secures the life insurance for the worker and directly to the Life Insurance Corporation.

Labour Union:

Naisad Desai is the leader of labour union of Surat Silk mills Majur Mahajan. The Slogan of the union is no strikes which proves that there are no conflict between the management and laborers. Thus the relationship between the management and union is harmonious. Medicare:

The Company possesses its own Dispensary at the Plant if any worker is injured; he is treated at the plant. In case of a major accident at the plant, The Worker is taken to Mahavir Sanjivni hospital, which is near Vareli. The Company bears all the expenses of the Hospital. Even in case of a serious illness or operation. The company bears all the expenses of the employee. If any family member of an Employee falls sick or Meet with an accident. The company gives money as well as hospital facility.

For this purpose the Company has made a Trust from which the money is given. Every worker has put a very small amount of money in this trust.


Security:

The Company has professional Security men. They check up every one who come and go to the company. No car is allowed with out a gate-pass. The entire employees are given a get pass and bus passes.

Facility at the Plant:

Garden provides good transportation facility to its employee at the plant. The entire employee have to reach the Register office at Sahara gate and there buses transport facility for employee in there respective plants whether at Vareli or Jolwa. Apart from this the bus leaves at 8o clock in the morning other shuttles also goes to the plant at 10 A.M. and an air-condition sumo car goes to the Vareli.

For coming back from the plant also there are number of buses if an employee wants half day leaves at 12-30 P.M. and also 1-00 P.M. When the 1st Shift ends at 3-00 P.M. buses are ready to transport the employees. After ending the 2nd shift at 5-00 P.M. the buses are ready to transport the employees.

Even during this time, if someone of rank officers or even Supervisors wants to go to the plant the shuttle service is always ready for them. For employees for a very high rank the company also luxurious cars for the Transport.

Canteen:


There is a canteen in the Compound of the company Premises. The canteen is mainly for the employees. Anyone wants to eat in the canteen, has to by a coupons are at reasonable price. The canteen provides lunch at noon and tea or coffee whenever desired.

Health and Environment:

The Company wills to create such an environment in which the case of conflict is minimum, which is not harmful and hazardous to employee. The company has already brought about all possible technical improvement in working environment/areas. As they cannot hazard to the employee and they can work comfortably the given task without

being worried. In the beginning company found its difficult to arrange but at last the company proved as possible.

The company completely aware about its responsibility as a good corporate citizen in health, safety and environmental management. The company contributes to the community welfare activities and takes up initiatives and measures related to education and health. Thus company puts emphasis on avoids all hazards and harms may affect adversely to employee.


EMPLOYEE TURNOVER:

In

simple

words,

Employee

turnover

means

employees leave the job or company due to some reason or some special purpose.

Employee turnover is bad things for the company. Therefore each and every company tries to reduce employee turnover in their company.

In the GARDEN Company, there is very little rate of employee turnover like 2% to 3%. Because of the some reasons, which are following, hear.

1. Compensation package differences 2. Inferior facilities, tools, etc. 3. Less recognition 4. Poor capability to work 5. Less incentive plan 9V.B.SHAH INSTITUTE OF MANAGEMENT

HUMAN RESOURCE AUDITCompany has an Audit committee at the Board level, which acts as a link between the management, the statutory and internal auditors and the Board of directors. The role and terms of reference of the Audit committee cover the matters specified under clause 49 of the Listing Agreement and Section 292 A of the companies Act, 1956. The Audit committee is meeting three times during the year the member soft audit committees are as following hear.

Name 1. Mr. Arunchandra N. Jariwala 2. Mr. Yatish C. Parekh 3. Mr. Rajen P. shah

Status Chairman Member Member

INDUSTRIAL RELATIONS

Members of the GARDEN Company are continuously working to create and nurture an organization that is highly motivated, result9V.B.SHAH INSTITUTE OF MANAGEMENT

oriented and adaptable to the changing business environment. Company recognizes human resource as the backbone of its longterm success and has tried continuously to provide a challenging work environment thereby adding value to their professional growth. Companys relationship with the employees continues to remain cordial at all units.

PRODUCTION DEPARTMENT


ACTIVITIES

IN PRODUCTION

DEPARTMENT

To take some knowledge about the production activities done in the GARDEN SILK MILIS, The Company have visited the production plan at the Jolla village. At that the company ask them that which kind of activities they carry out so they give us the all the detail of their activity.

In Jolwa plant they produce POY (partially Oriented Yarn). As the company knows that for the production of the goods the production Department has to depend on the Marketing Department. They produce only those quantities, which are demanded by the Marketing people.

Some activities done in the production Departm4ent are as follows:

1. Production manager gathered the information about what to produce and in what quantity. This information must be collected from the Marketing Department. Marketing Department collects information by analysis the market and gives data to production Department. 2. After receiving information about in what quantity produce, the production manager now does the arrangement of the raw material. In GARDEN the R.M. is the POY chips which is made from the D.M.T. and E.G.


3. After doing the arrangement of the R.M. the manager starts the production of POY. 4. When the production getting finished the manager check the quality of the all the POY. 5. After checking the goods they packed it in safe boxes. They the boxes are kept in warehouses. 6. Then as per the dispatch order given by the Marketing Department the Dispatch Manager dispatch the order and send it by trucks.

ACTIVITIES

IN PRODUCTION DEPARTMENT:

Marketing Department Give forecasted demand to pro. Dpt.

Production manager decides production

Production manager do R.M. planning

Production starts

Check quality of goods

Packing


Store in warehouse

Dispatch goods

PLANT

LAYOUT:-

It may be defined as the process of setting production activities in motion through the release of work orders and instruction in accordance with previously planned schedules. There are many types of plant layout but Company follows the process layout, which shows below.

PRODUCTION PARKING FOR TWO & FOUR VEHICAL DEPARTMENT QUALITY DEPARTMENT


SPACE FOR THE TRANSPORATION

ADMINISTRATION DEPARTMENS INVENTORIES OF SEMI, RAW MATERIALS

SHOP

FINISHED GOODS WAREHOUSE

CANTEEN

SOME DEFINITION

OF THE

FIBER,

OR

YARN

1. POY (Pre-Oriented yarn): The spun yarn has not yet been fully drawn. It is used in textiles that are, for example, finished using barmag draw-texturing machines.

2. FDY (Fully Drawn Yarn): Following the quenching process, this yarn is fully drawn and wound on socalled godets.

3. BCF (Bulked continuous filament): BCF yarn is fully drawn and crimped in a one-stage process. In this form, it can be processed into Capets and home textiles.


4. Industrial yarn: Particularly break resistant fully- draw threads, which are used in automobile tires, belts and airbags. 5. Titer: Measure for determining the fineness and filament yarns, for examples in dtex.

6. Dtex: The dtex measure unit determines the weight in grams of 10,000 meters of a filaments or yarn.

7. Godets: Godets are fast-rotating, cold or heated rollers which guide man made fibers. They are normally used to draw the thread at varying speeds.

PROCESS

OF MANUFACTURING:

-

Different techniques, such as weaving, printing, dying, shrouding, packing etc. are used in the production process. Yarn is chief raw material of the company. It is not manufactured at the plant of Vareli but is manufactured for looms at Jolwa. Process of production can be described as below: Obtaining the raw material Storing raw material Twisting the yarn Texturizing or crimping the yarn Draw warping


Sizing Weaving Dying & printing Following process of the company is explained below:

Obtaining the raw material:The raw material consumed by the company is Parcel Oriented Yarn (POY). The yarn is procured from both internal & external sources.

a)

Internal Sources: Internal source of the company comprise

the manufacturing plant of Jolwa and material purchase from Surat Textile Mills (STM), which is under the GARDEN Group of Company. Vareli plant also acquires raw material from Surat Textile Mills. b) External Sources: in the peak season, if the internal sources

are unable to meet the demand, the company also procures material from external sources like Modern, Indo-Rama, and Reliance etc.

Storing the Raw Material: All the raw material needed by the various departments is purchased together and maintained in the storage area called Dump Store from where any department can access the required amount of raw material.

1. Testing the Yarn: Parcel oriented yarn is either twisted, according to the requirements of material consumed in production.


Process of testing:

a) Winding on bobbins: firstly POY is wound on bobbins, which are twisted on the twisting machine. The winding of yarn is done on the winding machine. b) Twisting machine: the POY wound on the bobbins is then tittled on the twisting machine. On which the yarn is twisted. In this process, first the yarn is passed through spindles on which the yarn is twisted in both the opposite directions One for one twisting machine: in this machine, the yarn is twisted once for revolution. Two for one twisting machine: in this machine, there are two twisters per one revolution. Now days, TFOs are more widely used as they are quicker and offer a better quality. Fancy Twister: the yarn before twisting is not very strong and breaks easily. It is twisted in order to increase its strength. Due to twisting, quality improves and hence production also increases.

4. Crimping or Texturizing of POY:

the POY is accessed from the dump store to the crimping or texturizing section to texturizing it. Denier is unit for measurement of POY. Those 9000 units of yarn are hanker and weighted in Gms, are called one denier. It is decreased after crimping.

Process of Crimping:

Firstly, POY is put on machine in a specific amount. The place is called CRILL where it is put. After the first delivery, the yarn is heated. Then it is passed through cooling plate. After that, the yarn is passed through spindle assembly. Thereafter, it is passed through boiler and


at all it is taken up. This is what the crimping to Texturizing process is. There are two ways for punching the yarn.I. Raito-punched or bound II. Crime-not punched Types of crimping machine: Friction type Magnetic type

Friction type machine is superior to magnetic one. Yarn is made bulky after crimping. This process increases smoothness of material. It makes difference in dyeing. The cloth gets dull finished after weaving.

5. Draw warping:

The POY is put directly on the Machine from dump stove to draw warped process. Its the fully automatic system from the warping system. The process of drawing heat setting and intermingling is carried out. It is given tension and then wound on beam.

6. Sizing: Sizing is process of saving of yarn. The raw material for sizing is accessed either from dump store, warp raw section or from Texturizing department. A beam is made at the beginning is the process on this department. Warp yarn i.e. Vertical threads are made. 1. Warping 2. Chemical processes: yarn is passed through a chemical called polyvinyl alcohol to find and arcyrize shining. 3. Waxing: - where the yarn is waxed.


4. Sizing: - sizing is made in this process which involves many chemicals as well as heading of cobbling processes. 5. Beaming: - yarn is wound on a bean after sizing. Sizing which mean saving of yarn is necessary because of regular wear and tear.

7. Weaving: After making the process of twisting camping, sizing or drawing warp, the yarn is rent to the weaving department. In gray cloth is manufactured through the process of weaving in this process one thread is horizontal and other is vertical. Horizontal thread is called weft and the vertical thread is called warp. There are various types of looms on which the cloth is woven: 1. Semi-automatic looms 2. Water Jet looms 3. Fully automatic looms

It is notable that the production of grey cloth is 70000-mts/ day and it increases every year.

8) Dyeing & Printing:This is the lent step of the process of production department in the company. Process: The Jet dyeing process is widely used for dying the grey cloth. It is dyed printed according to the requirement of design and colors. 1. First of all the Grey cloth is washed and dyed, whichever color is necessitated. The company dyes 9000 mts of cloth daily.


2. The second step involves putting the dyed cloth in the drum washer to give crepe and georgette crease effect along with washing the stains. The super wash machine is used for finishing and washing white color material. Salvage or border outing machine is used for border cutting of the cloth.

DESIGN DEPARTMENT

There are 60 workers in design department under the direct control of the chairman and M.D. and it is based at Surat with the assistance of CAD/CAN equipment, the department aims to produce up to 200 designs each month. Each design is available with number of different colors. These new designs are marketed for testing through selected dealers and depots, which is a contributor, factors to a superficially high product


return at 12%. If the design fails to attract the customers, they are sold in spot sales of the company.

Percentage Share of the intermediary materials for sarees and dress materials

Particular Chiffons & Georgettes Jacquard Dobbies & Crepes Others Total

Sarees 25.4% 0.5% 0.5% 21.0% 47.5%%

Dress 1.5% 12.0% 0.5% 38.5% 52.5%

The Jacquard and chiffon georgette are one of the most profitable of all. Besides, GARDEN also manufactures cotton silks and blended fabrics, which constitute 10% of total production.

PRODUCTION

FACILITIES


Location Vareli Surat Jolwa

Total Average 40.8 11.4 18.3

Factory Area(Sq. mts) 1,60,000 30,460 6,763

Activities Yarn & Weaving Processing Design Polyester yarn Manufacturing

90% pf the companys whole Production capacity is at Vareli plant where three shift Pattern is operated so that the factory can enable of operating 24 hours a days, seven days a week for continuous process.

TECHNOLOGY

USED

There are so many types of technology used in the textile industry. Over company use latest technology for the different production process, which is, represents below:

1. For the Polyester Chips:


Continuous Polymerization plant of Chemtex DuPont, USA technology to manufacture high quality chips

Batch Poly plant for specialty chips such as Cationic and Full Dull

2. For the Partially Oriented Yarn:

The Company has the best assembly of technology like: 1. Noy Val Lesina mainly for specialty such as Cationic, Full Dull POY TMT, Japan and Barmag-Saurer, Germany for Semi Dull, Bright and Full Bright POY. 2. Best Winders such as from Barmag to build better packages. 3. A leading supplier of differentiated polyester yarns such as bright, cationic, micro denier and fine denier yarns. 3. For the Draw Textures Yarn The company is knowed for quality Dtex Yarn, manufactured on 37 machines from Himson (Reiter) and Alidhara. For export quality dedicated machines with Electronic Online Doff Monitoring system is used to build Equal Length packages. Latest Heberlein Slide Jet FT15-2 P142-2 series are used for high quality Intermingled Yarn.

4. for the Fully Drawn and Flat Yarn The company is the largest manufacturer of Flat yarn with 14 Ishikawa, 12 Zinser, 12 Teijin Seiki Draw Twisting machines and 11 Teijin Seiki Draw Winders. FDY is produced on TMT Machinery Inc, Japan technology with triple Godets plus one cold Godet for better quality of Nips at lower winding tensions.


We are the leading & largest manufacturer in India of Fully Drawn Flat Filament Yarn, the fastest growing PFY category. The largest supplier of Flat Yarn to the sizing sector in India

A leading supplier of differentiated polyester yarns such as bright, cationic, micro denier and fine denier yarns

5. For the Draw Warp and Sized Yarn

Best Liba Barmag and Karl Mayer machines to manufacture Draw Warp Yarns

6. for the Fabric

One of the largest installation bases of Tsudakoma and Nissan Water Jet Looms. Indias only manmade filament weaving unit with an ISO 9001 certification. We are the largest seller of branded polyester sarees & dress materials in the country under the brands Garden & Vareli.

QUALITY CONTROL

Quality policy of GARDEN JOLWA PLANT:

1 .To satisfy customer need and expectation.


2.Striving for continuous improvements through implementation of ISO 9001:2000. 3.Establishing, Communicating and reviewing measurable quality objections. 4.Developing and improving employee skills through effective training. 5.Maintaining safe working practices.

Quality Control System:

In the GARDEN JOLWA there is a separate quality control department this department is besides of the production department. They check the quality of the R.M. and Finished goods both. Their quality policy is to satisfy the customer at maximum level. The company has appointed many engineers who always take care about quality.

Quality control process of R.M. & Finished goods:

To make the POY the major R.M. is POY chip and spin-finished oil. In GARDEN they always check the quality of this both. If they found any dab quality then they will keep it aside. They also safely load the material in to the machine.

Once the POY made they also check the quality of it. They check the quality of the entire POY bobbin. They take the sample from the each and every bobbin and then they make the sample cloth from it. Then they dyed and print that cloth. And if there is any mistake they tell to production manager to solve it. If the quality is good then put the symbol of OK tested and then packs that material. They also check the denier and also the filament of the POY. The checking of denier is done with the help of the machine called Rap Reel Machine. And the checking of filament is done by computerized system

Quality control for work in progress goods:


In GARDEN they have also the system of checking the quality of goods when it is in progress, the exports keep on their eye on the every activity of the machine. They check the every activity of machine. They have the computerized system in which they can easily know in which machine the problem is occurs. And then they solved it.

RESEARCH & DEVELOPMENT DEPARTMENT

The company can maintain special areas in which research & development carried out. The research and Development efforts of the Company are directed towards the following:


5. Established super bright product in FDY. 6. New product in cationic like 30 den 24 filament trilobal is established. 7. Process improvement, technology up gradation and operational excellence to keep products competitive in global market. 8. Improvement of products quality and process efficiency. 9. Successfully developed micro textured yarn for high density, high speed waterjet the companioning.10. Specific studies on the plant related problems, waste generated /

effluent control.

BENEFITS

DERIVED AS A RESULT OF ABOVE EFFORTS:

1. Cost reduction in manufacturing has increased net contribution margins. 2. New products the company added to the existing product portfolio. 3. Opening up avenues for more business in future including export potential. 4. Technology up gradation. 5. Strengthened product portfolio and improved contribution margin.

FUTURE

PLAN OF ACTION:

1. Development of new products and processes.


2. up gradation of new variants of existing products. 3. Energy optimization for process plants. 4. Future improvement in the quality of products and processes.

Expenditure on Research & Development done by the company:The concerned departments carry out Research & Development in-house and no separate accounts are maintained.

Particulars of Technology imported during the last 5 years:

1. Technology imported: For polyester melt and chip manufacturing through continuous polymerization process. 2. Yearn(s) of import: 2005-06 3. Extent of absorption of technology: To the full extent. 4. If not fully absorbed areas where: Not applicable. This has not taken place, reasons Thereof and future plan of action


FINANCE DEPARTMENT


INTRODUCTION

OF

FINANCE

Financial management is an area of financial decision making, harmonizing individual motives and enterprise goals.

Money is the life-blood at modern business. Money is required to purchase expensive machinery, and day-to-day expenses on raw materials, labor, and operational and administrative needs at business, execution at expansion.

In the GARDEN Company, there are separate department of Accounting Department & Financial Department. The Companys financial position in the textile industry is very strong so that we said that the companys finance department is very strong. Hear show the structure of finance department.

Whole time Director (Finance, Legal, Administration, Tax)

General Manager (Finance)

Executive Manager

Company Secretary

Legal Matters

Tax Consultan

9


Cash Flow of Garden Silk MillsJun '06 12 mths Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 31.88 71.25 -69.54 -4.62 -2.92 31.36 28.44 Jun '07 12 mths 50.09 79.64 -81.10 -7.56 -9.02 28.44 19.42

------------------- in Rs. Cr. -------------------

Jun '08 12 mths 68.74 100.85 -92.40 48.30 56.75 19.42 76.17

Mar '09 9 mths 69.99 167.16 -209.66 39.21 -3.29 76.17 72.88

Mar '10 12 mths 93.09 162.36 -240.39 39.95 -38.07 72.88 34.81


SOURCES

OF

FUNDS

There are two types of sources of working capital, like Long term And Short term fund, which show here:

1) Long term Funda. Issue of share b. Loan c. Debenture f. Commercial Paper

Short term Fund:A. Internal 1. Depreciation 2. Taxation Provision 3. Accrued Expenses B. Eternal 1. Trade credit 2. Credit paper 3. Raw material 4. Debaters 5. Security of Employees 6. Loans from Directors


The GARDEN Company also uses this source of WC for their production. The company use these sources to gain fund, which is following hear.

Debtors Raw material

1. Debtors: the company uses these sours of the working capital. The company gets long fund for its customer. The company sells its product to customer for one month credit.

2. Raw material: the company sells its raw material, which is not use in the fabrics and get lot of fund for its Working capital.


Working Capital Management Analysis

Particular CA Inventors Sundry Debtors Cash Bank Balance Loan & Advance Total CL Sundry Creditors Interest Accrued Proposed of Tax Proposed Dividend Other Liabilities Total Net Working Capital

2009-08

2008-07

2007-06

2006-05

2005-04

21,755.11 6747.31 7,287.86 9,914.39 56,073.42

18,575.89 10,790.29 7,616.56 10,329.64 52,418.31

13,002.59 6,474.15 1,941.83 12,452.78 33,871.35

9,708.08 4,844.93 2,844.30 15,435.57 27,726.95

6,585.39 2,963.00 3,136.44 20,283.14 22,599.22

10,083.76 408.26 97.61 574.36 4,696.61 15,860.60 40,212.82

6,570.18 147.75 2,396.86 574.36 855.89 10,545.04 41,873.27

3,930.71 216.08 1,581.83 574.36 538.8 6,841.78 27,029.57

4,596.09 245.03 743.83 574.36 497.01 6,656.32 21,070.63

3,865.65 182.72 647.34 574.36 473.83 5,743.9 16855.32

50,000.00 40,000.00 30,000.00 20,000.00 10,000.00 0.00 Net Working Capital


Interpretation: Hear we show that Net WC of the company increasing every year but 2008-09 year's Net W.C is decreasing the previous year because of the company suffer in the resection time in these particular year .

INVENTORIES MANAGEMENT

For many business firm. Inventory is one of the visible and tangible of doing business. Raw materials, work in process and finished goods all represent various form of inventory. In simple words, inventory refers to stocks of good necessary to do business.

In the GARDEN Company, the Production manager & Finance manger both are take decision about inventory separately.


RATIO ANALYSIS

A ratio refers to the establishments of relationship between any two inter-related variables. Ratio analysis stands for the process of determining and presenting the relationship of items and groups of items in the financial statements.

Here represent the GARDEN Silk Mills Ltd. Data analysis

1.

Gross Profit Ratio: - This ratio establishes the relationship between gross profit on sales and net sales

Gross Profit Ratio: Gross Profit * 100 Net Sales Year 2008-09 2007-08 2006-07 2005-06 2004-05 Gross Profit 16,181.06 18,316.07 15,915.53 12,073.95 6,219.03 Net Profit 1,38,475.35 1,82,338.89 1,51,341.92 1,07,923.89 76,509.36 Ratio (%) 11.70% 10.05% 10.52% 11.19% 8.13%

Interpretation: - Gross Profit of the company is increasing day by day. It is increase to 11.70% in 2008-09 as compare to 2007-08 ratios is decreases as compare the 2006-07 i.e. 0.47% Because of the market is down in these times.

2.

Net Profit Ratio: -These ratios establish the relationship betweenthe amount of net profit or net income and the amount of sales revenue. Net Profit Ratio: - Net Profit * 100


Net Sales

Year 2008-09 2007-08 2006-07 2005-06 2004-05

Net Profit 4,958.47 4,000.37 2,325.97 2,210.45 878.96

Net Sales 1,38,475.35 1,82,338.89 1,51,341.92 1,07,923.89 76,509.36

Ratio (%) 3.58% 3.58 % 1.54% 2.05% 1.15%

Interpretation: - The Net Profit of the company is increase in current year as compare to previous year these show the companys high profitability.

3. Return on Assets Ratio: - It shows the relation between the net profit & total Assets. It also shows how much contribution is gain to use total Assets.

Return on Assets Ratio: - Net Profit * 100 Total Assets Year 2008-09 2007-08 2006-07 2005-06 2004-05 Net Profit 4,958.47 4,000.37 2,325.97 2,210.45 878.96 Total Assets 1,54,957.06 1,31,252.32 1,04,494.34 1,00,236.70 65,663.23 Ratio (%) 3.20% 3.05 2.22 2.20 1.34

Interpretation: - the Companys current year return on asset is increase as compare to next yare like 0.15%. And we also called companys return is increase year to year because the contribution of the total asset is increase year to year.


4. Return on equity ratio: it show the relation ship between the net profit & totalequity which represents how much equity is obtain by the company on the net profit.

Return on equity ratio= Net Profit * 100 Total Equity

Year 2008-09 2007-08 2006-07 2005-06 2004-05

Net Profit 4,958.47 4,000.37 2,325.97 2,210.45 878.96

Total equity 43,491.79 39,179.34 35,802.96 34,073.64 32,458.86

Ratio (%) 11.40 10.21 6.50 6.48 2.71

Interpretation: - the company total equity is invest in current year and the finished the financial year in 31st march at the time company the company find out the invested equity is the equity as a totally get in by this diff. Between total equity and balance sheet is both are same so company get the result is not profit no loss.

5. Current ratio= the current ratio establishes the relationship between the current assets & current liabilities.

Current ratio: - Current Assets Current liabilities


Year 2008-09 2007-08 2006-07 2005-06 2004-05

Current Assets 56,073.42 52,418.31 33,871.35 27,727.58 22,599.22

Current Lia. 11,984.62 7,476.21 7,028.73 6,824.9 5,929.51

Ratio (%) 4.68 7.01 4.82 4.06 3.81

6. Quick ratio: - quick ratio establishes the relationship between quick assets andcurrent liabilities. Generally, a quick ratio of 1:1 is considered to represent satisfactory current financial Position.

Quick Ratio: Current Assets - Inventories Current liabilities

Year 2008-09 2007-08 2006-07 2005-06 2004-05

CA - Inventory 34,318.31 33,842.42 20,868.76 18,018.87 16,013.81

CL B.O.D 11,984.62 7,476.21 7,028.73 6,824.9 5,929.51

Ratio 2.86 2.53 2.97 2.64 2.70


Interpretation: - in last five year the quick ratio is between 2.86 to 2.70 which was higher than 1:1 and it is satisfactory. These show the companys ability to meet its current obligation.

7. Assets turn over ratio: - Net Sales Total Assets Year 2008-09 2007-08 2006-07 2005-06 2004-05 Net Sales 1,38,475.35 1,82,338.89 1,51,341.92 1,07,923.89 76,509.36 Total Assets 1,54,957.06 1,31,252.32 1,04,494.34 1,00,236.70 65,663.23 Ratio 1.89 1.39 1.45 1.08 1.16

Interpretation: - Total asset turnover ratio was last five years is increase 1.16 to 1.89, which shows the companys strong situation.

8. Debt equity ratio: - Long term Debt Equity

Year 2008-09 2007-08 2006-07 2005-06 2004-05

Long term debt 90,397.23 80,214.80 69,491.45 63,907.86 59,169.17

Total equity 43,491.79 39,179.34 35,802.96 34,073.64 32,458.86

Ratio 2.07 2.04 1.94 1.86 1.82


Interpretation: - Debt Equity ratio of the com

Balance Sheet for the last five year

Balance Sheet of Garden Silk Mills

------------------- in Rs. Cr. -------------------



Profit & Loss account of Garden Silk Mills

------------------- in Rs. Cr. -------------------


SWOT ANALYSIS


Analysis from viewpoints of strength, weaknesses, opportunities and thetas of the company is as below.

Strength:1. Health relationship between management and employees. 2. Integrated production complex. 3. Sound financial base. 4. Adequate distribution system. 5. Innovation, fancy and competitive designs are strong features of the products of the company. 6. Speedy collection system. 7. Appropriate compensation and remuneration policy. 8. Situatable welfare system.

Weakness:

16. Higher manufacturing cost compared to local manufacturer of it. 17. The lead time is higher for manufacturing the new products or designs. 18. Sales promotion and advertising expenditure is lower than actual level and rivals, is not satisfactory. 19. Gradual disappearance of brand image. 20. Avoidable cash turnover ratio.

Weakness & Strength of the company in various departments on several aspects can be better estimated by the use of the table given below.


FactorsMajor Strength

PerformanceMinor Strength Minor Weakness Major weakness

Marketing1. Company Reputation 2. Market Share 3. Customer Satisfaction 4. Customer Retention 5. Product Quality 6. Service Quality 7. Pricing Effectiveness 8. Distribution effectiveness 9. Promotion Effectiveness 10. Sales Force Effectiveness 11.Innovation Effectiveness 12. Geographical Coverage

Finance1. Cost or Availability of Capital 2. Cash flow 3. Financial Stability

Manufacturing1. Facilities


2. Economics of scale 3. Capacity Utilization 4. Able-Dedicated Workforce 5. Ability to produce on time 6. Technical Manufacturing Skill

Personnel1. Dedicated Employees 2. Entrepreneurial Orientation 3. Flexible or Responsive

Opportunities:

1. Company is consistently investing in research and Development to improve the quality of existing products and enter new products. this will help the Company in forth coming time to sustain enhance its market value and share. 2. In the current state of slumping textile industry, Garden can still heighten as a potent market player with good use of its resources.

Threats:


1. Textile Industry as a whole is adversely affected by over capacity and demand recession and unfortunately seems to be grim.

2. Manufacturing of traditional sarees and dress material will be a major threat in the fashionable market on accou of volatile preferences of the modern consumers. Due to the bent of young generation towards western attires, the company may stagger in the market of traditional clothes. 3. Due to apathetic view towards advertising and publicity, it is fered to lose the share of customer, s mind for the product of the company

OBJECTIVES

OF THE STUDY

1.

To get the general knowledge of all those which were given in classroom and to be conform for.

2.

To complete the annual report university has arranged on compulsory basis in B.B.A stream after completion of second year during summer vacation. 3. To develop the knowledge of all those matters have been taught in the classroom. 4. To appreciate the market value and real worth of the company.

5.

To be conversant with organizational structure and strategies of the company.


6.

To get the knowledge of personnel department, production department, financial department, marketing department etc. of an organization.

CONCLUSION

As a compulsory part of B.B.A, I completed my Industrial Training of eight weeks and annual report too at GARDEN SILK MILLS LIMITED. In the course of these eight weeks while studying, I found that the company had good reputation and sound value in market. I must not miss to say that that training had certainly wonderful experience for me.


All theatrical knowledge in several subjects including marketing management, Organizational behavior , Accounting, production management, Human resource Management etc. were learned in class room, but I realized how they are implemented in an org. Due to these opportunity of industrial training

In short GARDEN SILK MILLS LTD is one of the developing manufacturing companies in INDIA having well structured management.

Questionnaire

To know the consumer satisfaction of GARDEN Silk mills Ltd 1. What is your Name

2. ( ) 5 /15 ( ) 15/20

Age ( ) 20/45 ( ) More than 45


3. ( ) House wife

Occupation ( ) Professional ( ) Student

4. ( ) Yes

Do you like Garden Cloth? ( ) No

5. ( ) Branded

Which type of cloth wants to prefer most? ( ) Local

6. ( ) Price

What you Concern more about while consuming GARDEN Cloth? ( ) Quality ( ) Design

7. Do you get GARDEN Cloth available on time at your nearest place? ( ) Yes ( ) No

8. If any suggestion for your requirement of GARDEN Cloth

Bibliography

Department

1.

Marketing management (By Philip Kotler)

2.

Personnel Management


(By C.B.Gupta & K. Ashwatthapa) 3. Production Management (By K. Ashwatthapa) 4. Finance Management (By M. Y. Khan & P. K. Jain)

Website:

1. 2. 3.

WWW.gardenvareli.com WWW.Corporateinformation.com www.money control.com


Documents

Garden Silk Mills Ltd