It Provides Direct Employment to Over 35 Million People Who Include Sub

PRABHURAM MILLS LTD

INTRODUCTION

The Indian textile industry is one of the largest in the world with a massive raw

material and textile manufacturing base. Our economy is largely dependent on the textile

manufacturing and trade in addition to other major industries. About 27% of the foreign

exchange earnings are on account of export of textiles and clothing alone. The textiles and

clothing sector contribute about 14% to the industrial production and 3% to the gross domestic

product of the company. The textile industry accounts for as large as 21% of the total

employment generated in the economy around 35 mill people are directly employed in the textile

manufacturing activities. Indirect employment including the manpower engaged in agricultural

based raw material production like cotton and related trade and handling could be around another

60 million.

Prabhuram mills, a cotton spinning mill located in the industrially background district

in Alappuzha is one of the units of kerala state textile corporation limited. A government of

kerala undertaking site of the mill is at kotta near karakad Chegannur

Kotta is remote undeveloped village in the mulakkuzha panchayath of chengannur,

Alappuzha district, it is industrially and economically a backward area.Nearly 75% of the people

of the area belong to the middle and low income group. Unemployment is a ramp act of there

area. Under this circumstances steps taken for starting a spinning mill was a blessing to the

natives of this area. The project received the whole hearted co- operation of the people. They

donated lands and came voluntarily to work for the construction of the two roads to the mill site.

ST JOHNS COLLEGE PTA 1

PRABHURAM MILLS LTD

OBJECTIVES OF THE STUDY

1. To study about the organization

2. To analyse various functions performed by the various departments in the organization

3. To gather managerial practical experience in an organization

4. To secure practical knowledge regarding the Materials, HIR, Finance, Technical Services

& Production aspect involved in the organization.

5. To know about the actual flow of communication procedure followed in an organization.

6. To know the level of degree to which each departments in an organizations interact with

each other to accomplish their goals.

7. To conduct an over all estimation of the effectiveness of the existing organizational.

SCOPE OF THE STUDY

Modern business is dynamic. Even the organization structure may be changes in near

future. There the scope for further study about the company is extended due to technology and

changing circumstances

LIMITATIONS OF STUDY

1) The officers were bust with their routine engagements, it was rather difficult to spare their

time for detailed discussion.

2) It was very difficult to stipulate a time for the workers because they are very busy with their

work.

3) Knowledge about some subjects related to the company was very limited.


PRABHURAM MILLS LTD

RESEARCH METHODOLOGY

Research methodology is away to systematically solve the research problems. It may

be understood as a science of studying how research is done scientifically. It is necessary for the

researches to know no only the research study and explain why we are not using others. So that

research result are capable of being evaluated either by the research himself or by others.

In order to get feedback from the workers direct interaction with them is very much

suitable for an organization like Prabhuram mills because of different areas of operations like

personal and administrative job, technical job, production and sales related jobs, and chemical

laboratory related jobs. More over the direct interaction with the employees help to cross check

the views and ideas expressed by the employees. In this method when we approach the

employees we get a good idea regarding what the employees think how they perceive the things

satisfaction and their views.

The purpose of methodology solution is to describe the reasoning procedure. This

includes the overall research design, sampling procedure and the data collection methods to

analysis procedure.

The data collection for the study is obtained from primary and secondary sources.

Sources of primary Data

The primary source of data are direct observation, interviews etc…

Observation method

The Observation method is the most commonly used methods. The information

obtained in this method relates what is currently happening. It is not complicated by either the

past method behavior and future intention or attitude. This method is particularly suitable in

studies which deal with subjects who are not capable of giving verbal reports of their seeling for

one reason on the other.


PRABHURAM MILLS LTD

Sources of secondary data

Secondary data means the data which is already available that is, they refer to the data

which may either be published data. Usually published data are available in

a) Various publications of central, state government

b) Technical and trade journal

c) Books magazines and newspapers

d) Reports and publications connected with business and industry etc… and reports

prepared by research scholars, universities economists etc…

e) Company websites


PRABHURAM MILLS LTD

INDUSTRY PROFILE

The textile industry is a term used for industries primarily concerned with the design

or manufacture of clothing as well as the distribution and use of textiles. The manufacture of

textiles is one of the oldest of human technologies. In order to make textiles, the first requirement

is a source of fiber from which a yarn can be made primarily by spinning. The yarn is processed

by knitting or weaving which turns yarn in to cloth. For decoration the process of colouring yarn

or the finished material is dying.

English inventors in the 18th century began to automate textile cottage industry

processes including carding spinning and weaving.James Hargreaves developed the spinning

jenny a device which replaced eight hand spinners in one operation. Richard Arkwright

assembled this processes and started the first factory on the Derwent river in Crom ford, England

in 1771.In1792, Smuel Slater of Rhode Island opened a yarn spinning mill in Dawtucket, Rhode

Island, the first successful automated yarn spinning in the US following the American revolution

the national Manufactory went out of business in 1796.

1793 Eli whitney and Hogden holmes developed a simplified method of removing the

cotton lint from the seed.In the early 1800’s cotton was raised in the southern United States And

exported to mills in England and the north. Leaders such as William Gregg of south Carolina

advocated a home based textile industry for the south but the time was not right. Northern mills

resisted to growth of mills out side New England.

Textile machine was built in New England New jersey and imported from Europe.

After the civil was, the south slowly replaced slaves with free workers. The industry remained

largely in the north until after the 1880’s.Leaders such as Edvin Michael Holt and family of

Alamance country,North Carolina built mills in large numbers through out the south as the 19 th

century closed Glencose cotton mil and mill village are preserved today. Cotton mills in New

England began to decline in importence.World war 2nd emphasized the need for self sufficiency.


PRABHURAM MILLS LTD

Following the war however imported machinery and dyes; especially from Germany and

Switzerland once again supplemented and eventually replaced domestic supply.

In the 1990 a new world order began to replace the made in the USA ideas. Buying from

the lowest cost producer drove many textile manufacturers out of the production side and in to

imports. Manufacturing companies changed to marketing companies

INDIAN TEXTILE INDUSTRY

Industrialization has an important role in the economic growth of the nation. The modern

industrial system was started in India during the fifties of the 19 th country. The first among the

industries functioned under the factory system was the cotton textile industry.

Indian textile industry has an overwhelming presence in the economic life of the country.

A part from producing one of the basic necessities of life the textile industry also plays a pivotal

role through its contribution to industrial output earnings of the countryCurrently the textile

industry contributes about 14% to industrial production 4% to GDP and 16.63% to the country

export earnings.

It provides direct employment to over 35 million people who include substantian number

of SC,ST and women. The textile sector is the second largest providers of employment after

agriculture.

The Indian textile Industry is extremely varied with the hand span and hand women

sector at one end of the spectrum and the capital intensive sophisticated mill Sector of he other

decentralised power loom or hosiery and knitting sectors from the largest section of the textile

sector. The close linkage of the Industry agriculture, ancient culture tradition of the country

making the Indian textile sector unique in comparision with the textile industry of the other

countries. These also provide the Industry with the capacity to produce a variety of products

suitable to different market segments both within and outside the country. The total textile mills

in the country are 1062 composing of 781 spinning and 281 composite in mills. The capacity

utilization in the spinning sector of the organized textile mills industry ranged between 80% to


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93% during the period 2002 -2003 to 2006-2007 while the capacity utilization in the weaving

ranged between 41% to 63% during the same period.

One main reason of sickness in the organized textile is the industry structural

transformation resulting the composite units in the organized sector losing ground to power

looms in the decentralized sector. The other causes of sick or closure of the industry include low

productivity due to lack of modernization stagnation, in demand and inability of some units to

expand their export market increases in the cost of inputs, difficulty in getting timely adequate

working capital etc.

MARKET FOR COTTON TEXTILE IN INDIA

On the eve of independence, cotton textile industry constituted the largest segment of

Industry in India. Even after the partition, India possessed the second largest textile industry in

the world and was the second to USA, Cotton textiles are one of the biggest industries in India

providing employment for 12 lakhs workers.

Government of India declared a new policy on 24th July 1991. It period the way for

industrial expansion and unfiltered on the entry of foreign capital in to the country were also

released.

The new policy facilities introduction of advent technologies by giving automatic

approval of foreign investment and radically there of. The new policy will need the industry in

production and export of the country also it will encourage new enterprises and relive than the

economic and other strains for which they were suffering and this will ultimately leads to better

performance.

In cotton textile industry the main raw material is cotton, which is converted in to yarn

and the yarn is converted in to cloth. Cotton is the most widely used textile fiber today. It is the

name given to the product of a class of plants scientifically known as Gossipium.


PRABHURAM MILLS LTD

COTTON TEXTILE INDUSTRY IN KERALA

The survey of the industries made during the year 1985 -86 showed that cotton textile

industry had a growth in Kerala with 25 units with 13068 spindles and Rs 7229.71 lakh invested

capital. Kerala at present has32 textile mills. The district wise distribution of the Industry is

given in the table

.

Alappuzha 2

2 Ernakulam 4

3 Kannur 4

4 Kollam 2

5 Kottayam 1

6 Kozhikode 3

7 Malappuram 2

8 Palakkadu 3

9 Thiruvananthapuram 3

10 Thrissur 8

NATURE OF THE TEXTILE BUSINESS

As in other industries, technological advances globalization and changing business

practices are affecting the textile Industry. One significant change is the increased emphasis on

quick response to customer demands. Thus ability is vital in an industry that sells its products in

an ever changing fashion consciout market. Quick response capability links apparel producers

more closely to related firms in the textile and retail sectors of the economy.

Other technologies affecting the textile industry include computerized equipment and

material transport systems. Computers and computer controlled equipment did in many

functions, such as design making and cutting, overhead conveyor systems ,transport material


PRABHURAM MILLS LTD

between sewing machine operators and between Processes. Despite these changes, however, the

apparel industry especially its sewing function has remained significantly less automated than

many other manufacturing industries.

The textile industry traditionally has cosisted of production workers who perform a

specific function in an assembly line. This organizational philosophy increasingly is being

replaced by a team concept in which garments are made by a group of sewing machine operator

in a module is trained to perform nearly all of the functions required to assemble a garment. Each

team is responsible for its own performance, and individuals usually receive compensation based

on the team’s performance. These changes have greatly altered The atmosphere and

responsibilities from those of the traditional assembly line.

CURRENT SCENARIO OF TEXTILE INDUSTRY

The ongoing globalization process is replete with threats from our competitors.

Particularly the export led economics like china to destabilize our export and local markets. At

the same time one should also realize that it offers unlimited opportunities. In order to withstand

the competition both in international and domestic markets and accelerate and export growth, it

is imperative to identify the strength and weaknesses the textile Industry hindering Its growth. It

is imperative to identify the strengths of this industry in terms of a strong raw material bases

skilled manpower and low wage costs, this industry has immense potential in the globalised

textile economy. However given the nature and extent of the fragmentation and technology

condolence in the decentralised sector, it calls for a focused action plan and programmers to

accelerate and sustain the growth level of the different segments of the Industry. The national

textile policy 2000 has envisaged a foreign exchange earning to the tune of Us $50 billion by the

year 2010. Besides many important measures have been spelt out in the policy document. Before

formulating the textile policy, the govt. of India had set up a committee under the chairmanship

of Mr. Sathiyam to examine and draw up action points on various sectors of the textile. Industry

accordingly the committee in its report had outlined critical issues for development and growth.

In the textile industry, the weaving sector has been identified as one of the poorest

technological links in the value chain. What makes the problem more serious is that the


PRABHURAM MILLS LTD

decentralized sector both the power looms and the handlooms, which are accounting for the

production of 76% of our fabric needs is marked by an overabundance

In a country like India where labour is abundant and the unemployment poses a serious

threat to the economic growth of the country, there is always a controversy about the production

technologies to be adopted. The mill sector’s competitiveness is at stake given the mushrooming

of a large power loom sector that has production function advantages. The textile production in

case of the later enhants like power looms has therefore upset the entire production scenario. The

power looms and mills are able to go for mass production with better quality products. In spite of

the fact that the industry could assimilite high technology and there for better quality production

in the market, it has never adapted to the modern technology and therefore has remained obsolete

The share of textile industry to country total exports is 16.63%

India’s contribution in global textiles and apparel market is 3.9% and 3% respectively.

The major sectors for exports are: - Readymade garments, Cotton textiles, Textiles made

from man maid fibre wool and woolen goods,silks handicrafts and coir.

The share of Indian textiles export in imports of EU is increased from 6% to 7%.


PRABHURAM MILLS LTD

PROCESS FLOW CHART OF TEXTILE INDUSTRY


RAW MATERIAL

BORAHBALE

MILL

COMPOSITE MILL SPINNING MILL

YARN

POWERLOOMHARDLOOM KNITTING

KITTING CLOTH

MARKET

CONSUMERS

PRABHURAM MILLS LTD

COMPANY PROFILE

HISTOTY OF THE ORGANISATION

Kerala not being a cotton producing state, import the raw material from outside. In

kerala at present 31 textiles mill among these four of them are functioning under the

management of kerala state textile corporation ltd. They are;

1) kottayam textile mills

2) Malabar spinning mill (kozhikode)

3) Prabhuram mills (alapuzha)

4) Edarukkodu mills (malapuram)

PRABHURAM MILLS

Prabhuram mill, a cotton spinning mill located in industrially backward district of

Alapuzha, is one of the units kerala state textile corporation Ltd a Govt of kerala undertaking.

The site of the mill is at kotta, near chegannur.

The late shri V.S shivagi Ganesan a Tamil film personality of yester years in association

withShri V.A Muthumanikkam, a landlod and industrialist from pollachi, decide to start a

spinning mill in kerala in the year1961.After conducting feasibility survey, they found that Kotta

in Chegannur Taluk was suitable for starting the mill. The factors that favored the selection of

kotta are cheap land possibility of getting continuous power supply and transportation facility.

The name behind the Prabhuram mill is derived from the name Prabhu , son of Shri V.S Shivagi

Ganeshan and Ram, son shri Muthumanikkam.

Industrial license for starting a spinning mill having a capacity of 12000 spindleswas

obtained on 12-05-1962 and was incorporated under the Companies act of 16-11-1962.

A plot of 14.28 acres land was acquired during the year 1963 and the building

construction was started in 1964. Also arrangements were made for importing machinery.

However shri V.S shivagi Ganesan one of the two entrepreneurs backed off on 17-10-1964 for

unspecified reasons. Thereafter, there was no progress in the project come to grinding halt due to


PRABHURAM MILLS LTD

non-availability of funds.

Four years later in1969, Kerala state industrial development corporation came to the reopen

of the company. The KSTDC remodeled the entire project and the management set up was

reconstructed. By April 1973, trial production was started and on 1st July 1973 commercial

production was started with about 8160 spindles. During the starting period itself the mill leads

to the financial problem because of high price of cotton. Thus situation necessitated the closure

of the mill on 31-10-75.

The share holders and workers of the mill lead to engage in a prolonged agitation

demanding the Government to receive the unit. As a result on 9-2-78 the ministry of industries,

Government of India took over the management of the mill. Soon after the mill was declared as a

relief undertaking and KSTC was entrusted to relieve the mill.

Then try an ordinance the governor of kerala and transferred the same of the KSTC with

retrospective effect from 1983 has been replaced by an Act 27 of 1985, The kerala silk Textile

undertaking and transfer of undertaking Act 1985.

VISION

We envision time in terms of new challenges and growth of resources both tangible and

intangible. We … technology in terms of its scalability in the service of our clients with total

efficiency and satisfaction thereby creating new wealth and processes.

MISSION

1. To offer maximum quality products

2. Work in ethics.

3. Everyone should be satisfied (Producers, distributers, customers)


PRABHURAM MILLS LTD

GOAL

PRABHURAM MILLS Ltd is dedicated to production of quality cotton. A careful

process involving modern industrial infrastructure, the latest technology skilled labours and

strick quality control produces our cotton products. Their widereputation give us the satisfaction

of fulfilling your needs while remaining nimble in the industry committee delivering the best.

QUALITY POLICY

It is the policy of PRABHURAM MILLS LTD to produce high quality products at right

time every time and all the times. By utilizing all the available resources. Every effort will be

made to manufacture products of good quality and to satisfy the expectations of the customers

and regulatory agencies in India on a continuous basis and to be market leader in order to

achieve and maintain the standards laid down. We will train and retain our employees and

suppliers to work harder towards our commitment.

It requires that our products be produces

In totally hygienic environment

Meet legal requirements

Delivered on shedule

Legal environment of the organization

The company is always careful about fulfilling all the legal formalities

Makes timely audit

Follows good manufacturing practices

Ensure healthy work environment

FACTORS WHICH LEAD TO THE ESTABLISHMENT OF THE

SPINNG MILL AT KOTTA

The establishment of the spinning mill at kotta was the outcome of the first industrial

policy declaration of Kerala. Before the industrial policy declaration, the government of Kerala

made a detailed of techno economic survey during 1990-61. The survey was conducted under the


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supervision of P.S Lokanathan. It was started in the beginning of 1960 and was completed by

September 1961. The report which was finalized in July 1962 contained a detailed study of the

economic development of Kerala.

While this survey was going on the government declared the first industrial policy of

Kerala on 3rd June 1960. In this declaration the entrepreneurs’ were offered various facilities to

establish industries. The industrial policy declaration attracted industrialist from outside Kerala.

The policy of the government was to sanction one industry per district. The backward districts

like aleppey were to be allotted more units. V.C Ganesan is association with

V.A. Muthumanickam a landlord from pollachi decided to take advantage of the government

policy to start a spinning mill in kerala. License was secured in the name of Muthumanickam and

Ganesan on 12-05-1962 to start in the mill in Alleppy district. An expert survey was conducted

regarding the location and kotta was found suitable for the following reasons.

1. Chap land

2. Industrially backward area

3. Possibility of getting continuous power supply

4. Availability of water

5. Transport and communication facility

6. Suitable climatic conditions

7. Support of local people

The cost of land at kotta was very cheap. It is a remote village situated eight miles away

from the nearest town Cheengannur and Pandalam and also two miles away from M.C road.

Local people offered land at a cheap rate of Rs 20 per cent. The management assured them

preference in appointments.

Kotta is industrially undeveloped. It is in the industrially backward District of Allappey.

As such easy loan facilities were available from K.S.L.D.C and K.F.C industries started in such

areas were also eligible for subsidies from government of India.

Kerala government also promised adequate power to the newly established industries.

From the Chengannur and Kozhencherry power house continuous supply was also assured to

kotta


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Kotta has no scarcity of water. Transportation and communication problems are also not

there as the site in near the M.C road and the chegannur railway station.climate conditions are

also highly favorable for the spinning mill.

The local people of the area particularly the Panchayath members of Mulakuzha and

Aranmula welcomed the industrialists and assured them all help.

The industrialists who came from Tamil Nadu were particularly interested in Textile mills.

As Tamil Nadu in Textile mill they found it difficult to get license there. Hence they turned

towards kerala. They applied under the new industrial policy of the state and got license for

starting a mill having a capacity of 12000 spindles, which was later, enhanced to 25000.

As per the memorandum of association the proposed mill was to be named as

PRABHURAM MILL LTD.

OBJECTIVES FOR WHICH THE COMPANY WAS ESTABLISHED

To purchase, prepare, gin spin, double, fold, wave manufacture, blanch, die, print or in

any other way to manipulate wool, cotton yarn, silk, jute, hemp, flax, linen, artificial silk, rayon

and synthetic and other fibrous products and materials to carry on the trades or businesses of silk

winding, spinners, weavers doublers, knitters, dyers, printers, fishers or merchants of silk, wool,

yarn cotton or other fibrous substance where natural or artificial and of merchants or dealer in

any of the products of any such process and to manufacture buy sell and deal in connection with

any forgoing business.

It is also started in the Memorandum of association that “the liability of the members is

limited”. The authorized capital as started in the Memorandum of association of the company

was “Rs 55,00,000 divided in to 50,000 equity shares of Rs 100 each. The said share capital may

be increased, reduced, altered, subdivided or consolidated in accordance with the statutory

regulations for the time being in force”.


PRABHURAM MILLS LTD

The board of directors signed the Memorandum of association on the 6 th day of November

1962 in the presence of N.nagaswamy Iyar, 15/2 kumarappa Mudali St.Madars-34. The Board of

directorsare given below

SL. Names, occupations,Addressess number of signature

No.and description of subscribers shares taken by

Each subscriber

1. V.A. Muthumanickam, land lord 250 shares (sd)

Shanmugha Mudali street, Two hundred V.A. Muthumanikam

Royepettach Madars-14 and fifty shares

S/O V.K.Amarapathy Gonder only

2. V.C. Ganesan, 250 shares (sd)

S/O P.Chinnayya pillay, Two hundred V.C Ganesan

11.New pok road, and fifty shares

T.Nagar, Madras-17 only

Total 500

According to the articles of association of the company ‘the shares shall be under the

control of the Directors who may allot or otherwise dispose of the same to such persons as they

think fit.With the regarding to the rights to preference share holders The articles of association

said ‘The company shall have a first and paramount lien on every share other than fully paid up

shares, registered in the name of each number, whether solely or jointly with others and upon the

proceeds of sale there on in respect of his indebtedness to the company on any account what so

ever, whether solely or jointly with any other persons and such lien shall extend to all dividends

and bonus from time to time declared in respect of such shares.


PRABHURAM MILLS LTD

The rights conferred upon the holders of the share of any class issued with preferred or

other rights shall not, unless otherwise expressly provided by the creation further shares ranking

pari passu therewith.

The board of directors may issue and allot shares in the capital of the company as

payment or part payment for any property sold or goods transferred or machinery or appliances

supplied, or for services rendered to the company in or about the formation or promotion of the

company or the acquisition and or conduct of its business any share which may be so allotted

may be allotted as fully paid-up shares, and if so allotted, shall be deemed to be fully paid-up

shares.

The share certificates to shareholders “shall be issued under the common seal of the

company and shall confirm with the requirements set fourth in the companies Rules, 1960 and

any modifications there of and amendments there to”The articles of association empowered the

Directors to borrow money for the mill. They may “from time to time, borrow from members or

other persons and may themselves, lend, any sum or sum of money for the purpose of the

company’s business as they think fit, but the directors shall not, expert with the consent of the

company in general meeting borrow moneys where the moneys to be borrowed together with the

moneys already borrowed by the company will exceed the aggregate of the paid up capital of the

company and its free reserves that is to say, reserves not set apart for any specific purpose”.

The annual general meeting of the company may be called by the directors to be held

at such and places may be determined them in accordance with section 166 of the companies Act

1956. Five members personally present shall be quorum for a general meeting.

‘The number of directors of the company shall be not less than three and not more than twenty.’

“The qualification of director, other than n ex-officio, alternate or nominated Director, shall be

the holding in his own name equity shares of the nominal value of Rs 5000.”

“ At the time of the adoption of these articles the following are the directors of the

company with power to co-opt additional Directors.”

1. Sri. V.C Ganesan

2. Sri. V.A Muthumanickam


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3. Sri. K.P Balasubramaniam

4. Sri. P Suvasubramania kalingaroyar

5. Sri. S Palani swamy

6. Sri. S.T Doraiswamy

7. Sri. N Periannan

8. Sri. Kandaswamy Gounder

9. Sri. V.C Sridhar

The Board of Directors may fill up any vacancy arising in the Board of Directors.

If by the terms and conditions of any loan or under writing and or subscribing in shares

or debentures of the company or giving guarantee for any loan or for differed payment, right is

given to the Government of India, or a state government, or the industrial credit and investment

corporation of India limited or the industrial finance corporation of India or the Kerala state

industrial Development corporation limited or to any authority or financial or other institution or

institutions or the holders of debentures or debenture stock or bounds, if any for the time being to

appoint a person or persons of there choice as Director or directors of the company such

authority or financial or other institutions shall be entitled from time to time at any time, to

appoint any person as director or directors of the company and such director or directors of the

company and such director or directors shall be called ‘Nominated Director’ or Nominated

Directors shall not be liable to retrieve by rotation nor shall they be required to hold any

qualification shares. The above said authority or authorities or other financial institutions shall

also have the right to remove at any time any Directors so appointed and to appoint any other

persons in the place of directors removed or in the place caused vacant by the resignation or

death of the directors appointed them.

Every directors of the company shall be entitled to receive from the company by way fees

a sum not exceeding Rs 200 as may be fixed by the Directors from time to time for every

meeting of the board Directors or committee attended by him and he shall also be entitled to

receive travelling and other out of pocket expenses incurred by him in attending such meetings.


PRABHURAM MILLS LTD

The Directors shall have power to provide a common seal for the purpose of the company

and from time to time, to destroy the same and substitute a new seal in lieu there of and shall

provide for the safe custody of the seal for the time being and it shall not be expect by the

authority of the directors and in the presence of at least one Director who shall sign every

instrument or deed and shall sign every instrument or deed and shall be countersigned by the

managing Director or such other persons appointed by the directors.

“Subject to section 205 of act the company in general meeting may declare dividends.”

“The company shall not forfeit the dividend amounts remaining unclaimed unless the claim to

such dividends becomes barred by limitation.”

“No member shall be entitled to visit or inspect the company works without the

permission of the Directors or Managing director or require discovery of any information

respecting any detail of the company trading or any matter which is or may be in the nature of a

trade secret, mystery of trade or secrete process which may relate to the conduct of the business

of the company and which in the opinion of the Directors it will be inexpedient in the interests of

the member of the company to communicate to the public.

V.A. Muthumanickam and V.C. Ganeasan also signed ‘The article of Association’ in the

presence of N. Naga subramaniam on the 6th day of November 1962.

After receiving the industrial license Prabhuram Mills (p) limited was incorporated under the

companies Act on 16-11-1962.


PRABHURAM MILLS LTD

COMPANY SYNOPSIS

Name : PRABHURAM MILLS LTD

Location : MC Road

Kotta, Chengannur

Alapuzha – 689504

Ph: 0479 – 2423055, E-mail – [email protected]

Chairman : P. Nanda Kumar

Managing Director : Ganesh

General Manager : Ajith kumar


mailto:[email protected]

PRABHURAM MILLS LTD

PRODUCT PROFILE

Cotton is the name given to the product of a class of plants specifically known as

Gossypium. In the cotton industry the main raw material is cotton, after the cotton crop is

harvested the kappas has to be ginned in order to separate the fibers from seeds. Here the cotton

is sucked through pipes in to a drier where excess moisture Is removed and then passed in to a

cleaner that separates the lint From the debris Picked up in the harvesting process. Finally it goes

to the gin Where revolving teeth pulls the lint through narrowsteel gratings leaving the seeds

behind. The deseeded fiber is cleaned again and then feel in to a gin press. Cotton after ginning is

available in a loose opened form. For care handling and transport the cotton is compressed and

packed in to bales. The textile mills get cotton in pressed bales. Quality is judged in terms of its

grade and staple

Baled cotton are normally sent to yarn spinning mill pants the compressed fibers are

cleaned again and formed in to a sheet of fiber called lap. The lap is placed in a carding machine

where fine wires carefully remove short and broken fibers. Producing a loose mass of fiber is

called a sliver. Slivers are led Into a drawing machine which positions the fiber parallel to one

another and combines several slivers in to one. For more expensive cotton fabrics the short fibers

are removed from slivers by combing Slivers are then put through a roving machine which thins

them to a diameter suitable for spinning and winds them into large bobbins. The bobbins are then

fit into a spinning frame where slivers are twisted together and thinned still more to form a yarn.

The cloth is produced from the yarn by knitting or weaving.

The yarns which are produced from the company are of two types. Cotton converted in to

yarn in the mills is 90 Yarn and 84 polister cotton. These yarns are placed in cones.

1 cone = 1 kg

This yarn is packed in bags and forwarded to Mumbai

1 bag = 51 kg

Cotton cloths even in the modernized world have countless users. It is also significant

that the cotton is most widely used textile fiber today.


PRABHURAM MILLS LTD


PRABHURAM MILLS LTD

DEPARTMENTAL PROFILE

Departmentation is a part of the organization processes it grouping the common

activities under a single persons control. The activities are grouped on the basis of function of the

organization. The work is done by a chief executive of the concerned organization.

It is an essential one on the modern business world. A single individual cannot look after

the business activities. The classified activities bring in specialisation

The overall management of the affairs of company vest with the chairman and managing

director. The top executive at Prabhuram Mills the general manager who reports directly to the

chairman and Managing director.

The organizational structure of Prabhuram Mills shows a more or less linear structure

without much Departmentation.

The work areas as gathered from the organizational structure are consolidated in to four heads.

* Purchase Department

Production and operation Department

Quality control Department

Technical department

Finance and Accounts Department

Marketing Department

* Personnel (human resource) Department


PRABHURAM MILLS LTD

PURCHASE DEPARTMENT

In Prabhu Ram Mills Ltd the main function of the store department is the purchasing of

the raw materials needed for the production and store them. Purchasing refers to the act of

buying an item at a price. It is the fundamental function in an industrial enterprise. The wheels

of the industry will not move unless the materials of the right type are bought in right quantities

and made available at right time.

This department consist of two sections. Purchase section and store

section

Purchase Section

Purchase of raw materials and machinery goods are necessary for the smooth production.

The organization keeps a minimum level, maximum level and reorder level for storing raw

material . Minimum level indicated the amount of raw materials needed for the production of

yarn for the next 3 months. Maximum level indicates the amount of raw materials needed for the

production of yarn for the next 6 months. In order to issue the smooth production of end


Purchase Manager

Clerk

Store keeper

PRABHURAM MILLS LTD

products, the company maintains a reorder level of raw materials. It is determined on the basis

of the demand of materials.

Purchase request

Purchase request is a form representing a request for a new purchase is the purchase

department when the stock is the store goes below the reorder levels, the purchase process is

initiated. The purchase process begins with the purchase request. The purchase request contains

in formation regarding the item name, item code; quantity required, purchase requisition number,

requisition date, department etc.

Purchase enquiry

The store department maintains a list of suppliers for each and every material. According

to the purchase request, the purchase section prepares a purchase enquiry from, which is sent to

different vendors. This enquiry is done in order to find the appropriate vendor who is capable of

providing the organizations requirements. The store vendors send their quotations when they

receive e the purchase request. The store department now selects those vendors who are fair and

honest in dealing and makes delivery on stipulated dates others are rejected.

This form contains information regarding enquiry number, date, with in quotation to be sent,

quantity of item required , delivery period at items, vendor name, vendor code etc.

Technical and Commercial suitability

The next step is the technical suitability of the product, is certified by the intender (those

department who needs the item) and the commercial suitability by store department itself.

Comparative financial statement

In this step, all the quotations send by the vendors are compared. The politics, quantity,

price, delivery times mentioned by different vendors are compared. After analyzing the details a

particular supplier is selected who offers the better quality at least price.

Purchase order


PRABHURAM MILLS LTD

After selecting the most appropriate quotation, the stores department sent purchase

order to the selected vendor. Purchase order is the order send to supplier by the purchase officer.

It shows the name and address of the particular vendor, purchase order number and date,

quotation number and date, item code description, quantity required, total price, packing and

excise duty, mode of transport, delivery period etc. After that it is entered in the stores ledg

STORE SECTION

When a vendor makes delivery authorized people from the store check the delivery with

the invoice. Then the invoice is compared with the purchase order an item is issued to the

department a issue slip is prepared and entered in the issue register.

In store department the monthly store consumption statement is prepared and sends to the

financial department to prepare the profit and loss account.

As the major planning relating to the purchasing and sale are undertaken by KSTC in

Trivandrum the mill at chengannur does not have its own purchase department. The raw material

purchased by KSTC will issued to respective mill based on the demand, so in order to that

company is maintaining a department for purchasing and storing the raw material issued by the

KSTC. A few staff doing the purchase activities comes under the accounts officer. The main raw

material is cotton and it is mainly purchased from Tamilnadu, Karnataka, Maharashtra, Madhya

Pradesh and Andhra Pradesh.

Collection of Yarns

1. From of other states

2. Collecting through agent as per commission basis

3. Centralized purchasing by KSTC.


PRABHURAM MILLS LTD

PRODUCTION DEPARTMENT

Among all functional areas of management, production is considered to be crucial in

PRABHURAM MILLS. Here the final product is yarn and the raw material is going through

various processes before it converted in to final products, the yarn. The production department is

taken care of all the production and purchasing activities. They collect the information regarding

the market requirements and plan the production activities according to that. The department is

headed by production manager

DEPARTMENT STRUCTURE


Production Manager

Spinning Manager

Assist. Spinning Manager

ElectricianClerk

Electrical SupervisorProduction Supervisor

PRABHURAM MILLS LTD

RESPONSIBILITIES OF PRODUCTION MANAGER

Direct responsibility for placing marketing, production and purchase

Overall responsibility of purchasing of raw materials

Implementing corporate policies

Monitoring cost and improve productivity at planned level.

Promotion of awareness of customer requirements through out the organization.

Direct responsibility in running the plant to its maximum capacity

Responsible for purchase of raw material as per laid down specializations.

Responsible for prices of raw materials based on market survey.

Arranging the required quantity in consultation work

Achieving the quality desired

PRODUCTION

In this mill the raw material is cotton which is converted in to yarn. The conversation of

cotton in to yarn is a lengthy process. The various operations carried out in different departments

are listed below.


PRABHURAM MILLS LTD

PRODUCTION PROCESS

In PRABHURAM MILLS, the main raw material is cotton, which is converted in to

yarn. The conversion of cotton in to yarn is a lengthy process. the various operations are carried

out in different departments.

Departments are;

1) Blow room

2) Carding

3) Combing

4) Drawing

5) Simplex

6) Spinning

7) Winding

8) Packaging

A brief account of the operation in each department is given below;

1) BLOW ROOM

This first department in the mill is blow room. The department functions only during the

day shift. The machineries of this department are mostly important in a spinning mill. A blow

room line consists of opening, cleaning, mixing and lap making machines.

The objective of blow room machinery are;

Opening

Cleaning or waste removing.

Mixing

Scouting and lap formation

The cotton of 90% and 80% reaches in the Blow room Department in a hard pressed baled

form. It contains several impurities. The first process in the blow room department is the opening

of hard-pressed bales and cleaning of cotton of heavy impurities like broken seed, leaf, stalk,

husk and sand. It then passes through a series of machines known under the general name


PRABHURAM MILLS LTD

openers. Trash and foreign matters have to be extracted from the cotton with the least amount of

lint loss.

Another process is mixing various kinds of cotton like D. CH 32 Varalekshmy;

Rajapalayam etc are generally mixed to get a proper blend. The object of mixing is to obtain as

possible uniformity in length of staples, quality and colour.

The scouting and lap formation are the last operation in blow room. Although the cotton

has now passed through the opener and has had extracted from it probably about 4% of

impurities is not as clean. The cleaning process is there fore continued under scouting. The

object of scouting is to remove as much as possible the impurities the opener has failed top

expel. The loose cotton passed through the scoter is converted in to uniform sheets called laps.

These laps are then delivered to the next department namely carding.

2) CARDING

This is second and the most important department n a spinning mill. Then after fourteen

cards and the department functions in three shifts.

The objective of carding are;

1) Waste Removal

This is to remove the impurities and clean the cotton further. The main waste extracted from

cotton in the carding department are ;

Flat strips

Liker in waste

Cylinder waste

Preuma waste

Invisible waste

1) To remove short fibers, motes,bits of seed leaf, naps etc from the laps so that better yarn may

be produced as far as possible.

2) To loose fibers and support them so that the work of the draw frame may be effective.

3) Individualization of fibers and converting them into tom single strands. The carding process

helps better mixing of fibers. The carding are stripping action are carried out in this department.


PRABHURAM MILLS LTD

Fibers are converted in to single strands called silvers The silver are stored in “cans”. The

carding process help a through mixing of fibers. The carding and stripping action are carried out

in this department.

3) COMBING

It is optional process. The purpose is to produce yarn of better quality and finer count. So

the quality high count cotton is processed in this department. There are four combers in this

department .

The objective of combing are ;

(a) To eliminate shorter fibers

(b) To strengthen out the fibers

(c) To parallelization of fibers

The silvers are taken directly from the card and passed through three process in the department.

(a) 22 carded silvers are fed in to silver lap machine and a lap is produced.

(b) 6 silver laps are taken in to the ribbon-lap machine and a fiber lap is produced.

(c) 8 ribbon laps are on corrugated wooden rollers behind the comber. The rows of needless

on a cylinder in the comber comb out all the short and nappy fibers from the lap. These

lap are delivered in to two silver in to two card placed at the end of the machine.

Maximum parallelization and waste removal are done in this machinery. The comber

extracts 15% of the remaining waste. The yarn of 90’s are produced from the combed slivers.

The combed slivers coiled in cans are supplied to the next department c called drawing

department.

4) DRAWING DEPARTMENT

In this department are carded and the combed silvers are processed separately.

There are three drawing machine in the department.

The objectives of the drawing department are ;

(a) Blending of slivers

(b) Attention of fibers


PRABHURAM MILLS LTD

(c) Parallelization of fibers

(d) The improvement of uniformity of slivers

(e) Purification of silver further. The carded silvers are passed through two drawing i.e; the

breaker drawing and finisher drawings.

DRAWING PROCESS

The carded or combed silver in eight cans are placed at the back of drawing head. The

silvers from these cans are then passed through a guide and four pairs of drawing rollers, the

purpose being attenuation or drawings out of the fibers. The silver from these eight cans

become one after the process and passed through calendar rollers to a coiler which coils the

new silver in to a can. This silver can is now ready for the next machine. In this mill, the

drawing machinery has automatic doffing and donning, for creel break motion.

3) SIMPLEX (ROVING OR FEAMES)

There are six simplex machine in the mill, there 120 spindles machine and the other

three 124 spindle machine. The object of the simplex is to convert the carded and combed

silvers in to roving. The carded or combed silvers are supplied to the simplex machine. Here

the silver passes in between three lines or rollers where it subjected to a drawing action A

slight twist is given to the reduced silver and it is then wounded up on a bobbin by means of

flyer. The slight twist given to the attenuated and extremely loose sliver is sufficient to give it

the necessary strength to enable it to be build up around the bobbin. In this condition it is

convenient for further treatment. The roving wound on bobbins is supplied to the next

department.

4) SPINNING(RING FRAMES)

It is the large and last stage of manufacturing of yarn. The spinning frames convert

the roving in to yarn of the required count. The main operations carried out in the ring frames

and drafting, twisting and winding. The roving received from the simplex department is still

much thicker than thickness of the final yarn required. There for the first process On the ring

frame is drafting. The next operation is twisting. The amount of twist inserted here is larger

than at any other previous stage in order to give sufficient for the end use required. The


PRABHURAM MILLS LTD

twisted yarn is wound on cops. These cops are fitted up on spindles which are run at a speed

at about 13,000 to 16,000 rotation per minutes(rpm).

Two types of yarn produced in these area are:

a) 90’s comped.

b) 100’s comped.

The mill was started with in a spindle capacity of 8160 spindles. But the present mill has an

installed capacity of 17,968 spindles.

5) WINDING

The winding machines are removing defects like thick places in yarn and to enhance

the length. Here the cop wound yarn from the spinning department is transformed to conical

shaped means of yarn wound on paper cones weighting 1 and ¼ Kgs. The cops are fixed firmly

on the spindles in lengthwise. Yarn is then passed through guides and study catches and wound

on paper cones.

6) PACKAGING

By combing the length of yarn from a number of spinning coops large packages are made.

These are called cones, which are found convenient for the continued operation to be carried out

in the subsequent process. Mechanical types and electrical types of cleaning devices are used in

winding machines with a view of removing objectionable thick place like slubs, bad-piecing or

knots etc. from the yarn. Cones are packed in bags.

The net weight of a bag is 50Kgs.

1 ¼ Kg 40 Packs 50Kgs

1Kg 50 Packs 50Kgs

160 Kg 8000 Packs 1 Load


PRABHURAM MILLS LTD

FINANCE DEPARTMENT

Finance Management is that managerial activity that is concerned with the planning and

controlling of firms financial resources firm secures Whatever it needs and employs it in

activities which generate returns on invested capital. Prabhuram mills are subsidiary of KSTC

Ltd. The share are help by KSIDC and Kerala govt. the major part of share is with the Kerala

Government initially the working capital was 60 lakhs. The authorized capital 4,44 crore which

is wholly subscribed by the government of Kerala. The company accounts are kept and

maintained as per the companies act. Company is maintaining cost accounting and budgeting.

Company is calculating depreciation by straight line method. Accounts dept which is under the

finance department will help to check the accounts of the mill and detail and correct the balance

sheet and profit and loss a/c

ORGANISATIONAL STRUCTURE OF FINANCE DEPARTMENT


Finance manager

Account Manager

Senior Accountants Purchase and Sales Clerk

PRABHURAM MILLS LTD

Sources of Funds

As the mill is lacking from funds due to continuously making operational loss, the source

of finance is met in the way of paid up capital reserve and surplus and in the form of secured

loans. Company deal with State Bank of Travancore, Chengannur for its financial activities.

Responsibilities of Finance Manager

1. Direct responsibility is maintaining the books of accounts and orderly.

2. Liaison with banks and other institutions

3. Checking of daily reports for further improvement and taking action necessary.

4. Direct responsibility in running the firm in maximum profit.

5. Liaison with government bodies and regulatory authorities.

6. Prepare budget and to achieve targeted turnover.

Responsibilities of Assistant accounts Manager

1. Righting up general ledger customers ledger journal and related vouchers

2. Preparation of monthly, quarterly, half yearly and annual trial balance and balance sheet.

3. Monthly reconciliation , cotton stocks, stock of capital item, stock of packing materials

and customer control accounts.

4. Preparation of fixed assets registers.

5. Preparation of weekly, monthly, quarterly, half yearly and annual statement report and

returns.

6. Verifying all documents and invoice of dispatched /sales

7. Work connected with canteen accounts.

Responsibilities of Senior Accounts assistant

1. Preparation of all cost records and making statements and reports related to costing and

management information system.

2. Preparation of budgets and analysis of actual performance with budgeted performance.

3. Verification of staff acqainlance wages calculation of staff and workers advances and

bonus and gratuity calculation

4. Renewal of insurance policies and follow


PRABHURAM MILLS LTD

5. Any other related work assigned by management form time to time

Responsibilities of Clerk

1. Presentation of bank vouchers and bank book

2. Maintaining cheque issue register and to prepare monthly bank reconciliation Statement.

3. Preparation and monthly cash flow and related documents.

4. Righting up of creditors, ledger, cotton or other purchase journal.

5. Send the returns of rules tax income tax and arrange remittance of that time in time.

6. Preparation of fund accounts and related statements at the time of audit.

7. Payment of wages, extra wages, salary, extra salary advances and other dues to the

employees.

8. Maintenance of unpaid wages, extra wages bonus register etc.


PRABHURAM MILLS LTD

QUALITY CONTROL DEPARTMENT

Quality is very important for a manufacture of a product or service, because the very

existence of a manufacture depends on the quality levels. Good quality ensure higher

profitability greater good will and makes the employment of highly skilled manpower with

better wages possible production cost depends upon the type and nature of products for this

purpose a manufacture maintains a separate inspection and testing department with the latest

technical personnel.

Mill has no separate quality control department except an apparatus to text the strength

and weight of the yarn produced. The raw materials for the production of yarn are sent for

quality testing in Trivandrum laboratory. The samples from the product are also sent to

Trivandrum laboratory. The samples from the transport. If there is any complaint the product is

send to Mumbai Laboratory for further checking. If there found any complaint from Mumbai

Laboratory it is further sent for checking at Coimbatore laboratory. So it takes time to get the

result of the product.

In the following test are carried at

1. Raw cotton test

2. Cotton is purchased only after testing the quality of cotton. The row cotton is tested by a

machine premium act. The basic properties of cotton that are evaluated by the machine

are given below

a. Length of fiber

b. Strength in grams

c. Finess in microgram/inch

d. Uniformity in ratio percent

e.

2. Twist tester

This is to check the twist per inch in the yarn.


PRABHURAM MILLS LTD

3. Yarn Twist

The amount of twist is an important factor in finished Consumer’s good. It determines the

appearance as well as the disability and service ability of a fabric.

Organizational structure

Quality control manager

Quality control supervisors

staffs


PRABHURAM MILLS LTD

TECHNICAL DEPARTMENT

Technical department takes care of the quality of finished products and the proper

storage and also the machine activities. They ensure the proper functioning machines. Technical

department is headed by Technical Manager Under him lie the Assistant Manager, Quality

Supervisor and Store Keeper.

All the machines are imported from china. In the production department both man

operating and automatic electrically operating machines are used. It’s the duty of technical

department to check the functioning of machines before the next shift begins.

The department maintains two transformers for giving electricity to the manufacturing

process they are of 500 KV both. There are two generators of 380 KV to ensure the continuous

supply of current. Per day 13000 units are consuming

Per unit 4.00 so total unit cost is 13000 x 4.00 = 52000 Rs /day

1Kg yarn power consumption = 3.8 units


PRABHURAM MILLS LTD

ORGANIZATIONAL STRUCTURE OF TECHNICAL DEPARTMENT


Technical Manager

Assist. Manager Quality Control Supervisor

Staffs

Store keeper

PRABHURAM MILLS LTD

MARKETING DEPARTMENT

Introduction

The major planning relating to the purchase and sales undertaken by Kerala State

Textile Corporation (KSTC) in Trivandrum. The Prabhuram Mills does not have a separate sales

and purchase department

ORGANIZATIONAL STRUCTURE OF MARKETING DEPARTMENT

These two deputy managers are given the charge of monitoring the purchase of row

material and sales of finished products of all the four mills ie, Malabar Spinning Mill in

Malappuram District, Kottayam Textiles in Kottayam District, Edaricode mills in Trissur

District, Prabhuram Mills in Alappuzha District.

These two Deputy manager plan the purchase and inform and inform the general manager.

They then inform the Master to General manager of the respective mills.


KSTC

General Manager

Deputy Manager (Purchase) Deputy Manager (Sales)

PRABHURAM MILLS LTD

As major planning relating to purchase and sales are taking place at Trivandrum the

mill does not have purchase and sales department. A few Staff doing purchase and sales is come

under accounting officer.

Collection of raw materials

The main raw material of yarn is cotton and it is purchased from Tamilnadu, Karnataka

and Andhra Pradesh. The collection through agents is as per a commission basis. There is a

centralized purchasing by KSTC and required amount of raw material is given to each mill.


PRABHURAM MILLS LTD

HUMAN RESOURCE DEPARTMENT

Personnel Department is the department that controls all the manpower requirements

of the organization. The take care of all welfare activities of the employees. The department is

headed by personnel manager and supported by supervisors, clerical staff and securities. Copies

of job responsibility are used to all relevant persons and acknowledgement fields in any position

the responsibility shall be passed up wards. In case of the level below the divisional head the

responsibility can also be passed to any person authorized by the divisional heads.

In Prabhuram Mills the total strength of human resources is classified in to three categories

They are,

1. Officers

2. Staff

3. Workers

Workers again classified in to

1. Permanent workers

2. Trainees

3. Casuals

ORGANIZATIONAL STRUCTURE OF PERSONAL DEPARTMENT


Personal Manager

Time Keeper Time Keeper

Watch and Ward ESI and PF Clerk

PRABHURAM MILLS LTD

Responsibilities of Personal Manager

Team Leaders

Recruiting of staff and employees

Identifying training needs of personnel

Conducting training programmers

Overall responsibility for performance appraisal

Responsible for staff welfare activities

Recruitment and selection

Personnel .. are identified by the department and recruited accordingly. In Prabhuram

mills a selection board was constitusal including members the mill and thus board do a

government representative selection staff selection is through public service commission (PSC).

Performance Appraisal

Performance appraisal is important for the employees at all levels through and the

organization. The parameters, the characteristics and the standard for evaluation may be different

but the fundamentals of performance appraisal are same. But as the level of employees as

increases, appraisal is more effectively used as the tools of managing performance.

Performance appraisal of Managers

Appraising the performance of managers is very important, but at the same time, it is

one of the most difficult tasks in the organization. It is difficult because most of the managerial

work can’t be quantified ie, it is qualitative In nature like leading his/her team, guiding,

motivating, planning etc.

There fore the two things to be noted and evaluated for the purpose of appraisals are

Performance in accomplishing goals

Performance as managers.


Managers are responsible for the performance of their teams as a whole a selection

board was constituted including members from the Prabhuram mills.


PRABHURAM MILLS LTD


Managers are responsible for the performance of their teams as whole. Performance in

accomplishing goals set for a team of employees which is being assigned to or working under a

particular manager. The best measuring criteria for a manager are his goals, his plans of course

of action to achieve them and the extent of achievement of the goals.

Performance as Manager

The responsibilities of managers include a series of activities which are concerned with

planning, organizing, directing, leading, motivating and controlling. Manager can be rated based

on these parameters. Criteria for measuring performance a different levels.

The criteria for measuring performance changes as the levels of the employees and

their roles and responsibilities changes.

For Top level Managers

Degree of organizational growth and expansion.

Extent of achievement of organizational goals

Contribution towards the society

Profitability and return on capital employed

For middle level Managers

Performance of the department

Co-ordination with other departments

optimal use of resources

hiason With superiors and subordinates

For format line Supervisors /Time keepers

Quantity of actual output against the targets

Number of accidents in a given period

Rate of employee absenteeism


PRABHURAM MILLS LTD

HR Strategies

Strategies are fair broad statements of intent which show the types of action required to

achieve the underlying objectives o an organization. In every organization there are set of

objectives which help them to attain their common goal.

HR Strategies which are being implemented in the mill in the achievement of core

corporate strategies. The core corporate strategies include.

1. Offering best product

2. Selling at best price.

HR Planning

Planning for human resource is more important than planning for any other resource as

demand for the latter depends upon the size & structure of the former. Management of human

resource hardly begins form human resource planning, It is the basis of all sort of other functions

in an organization, it can viewed as for seeing the human resources. Human resource means

skill, knowledge, values, ability, commitment, motivation etc. In addition to the number of

employees.

Human resource planning anticipates not only the required kind &number of employees

but also determines the action plan for all the functions of personal management. HR planning

implemented in the ACSM attempts to

Check the corporate plan.

It offsets uncertainty & change which enables the mill to acquire right person, at right

time in right place.

It anticipate the cost of salary enhancement, better benefits & all he cost of human

resource facilitating the formulation of budgets in an organization


PRABHURAM MILLS LTD

It helps to take steps to improve human resources contributions in the form of

increased productivity, sales, turnover etc.

.

It leads the development of various source of human resources to meet the

organizational needs

It helps in the control of all the functions, operation, contribution and cost of human

resources.

It gives the data about the type of tests to be used and interview techniques in

selection based on the level of skills, qualifications, intelligence, values etc.

.

It also gives the data related to the physical facilities, working conditions & the

volume f fringe benefits like canteen, company stores, first aid facilities.

competence Awareness and Training

All new recruits shall undergo induction training. Employees are categorized in term of

Job and skill required to do a particular job based on their experience and knowledge. Technical

training in house or external training is given to the employees of all the categories in the

particular area for their skill development.

The training need identified through the above stage is prioritized. It is need base and

consultation with the persons concerned their superiors and top management and then the final

training is prepared.

Studies and organizational analysis. If necessary will be conducted to identify the

problem areas training will be given to these problematic area in order to handle it. Employees

requiring particular training are grouped together and training provided in batches

Questionnaires are distributed to personal at random and feel back is collected.

A training schedule is formed for period of six month and as per the monthly

schedules training are conducted for the personnel. After the training trainees are evaluated


PRABHURAM MILLS LTD

based on evaluation some times additional trainings are arranged. Appropriate records of

evaluation, experience and training of all personnel effecting quality are kept in file.

Organization and individual should develop and progress simultaneously for their

survival &attainment of mutual goals. So every modern management where newer technologies

are being implemented should provide training to their employees to make them aware about the

present scenario of organization. Employee training is specialized function &is one of he

fundamental operative function for human resources management.

After an employee is selected, placed and introduced he/she must be provided with

training facilities. Training is not the act of increasing the knowledge skills of an employee for

doing a job it is also concerned with the purpose of introducing an employee towards the rouls

and norms in the organization with respect to work completion leave allotment, procedure in

taking leave, &all such activities. Thus, training is a programme conducted to make aware of the

internal matters of an organization to a employee of an organization.

Job and organizational requirements are not static, they are changed from time to time

in view of technological advancement & changes in awareness of the total quality and

productivity management organizational efficiency, productivity progress & development to a

greater extended depend upon training.

Training programmers can be classified as:

1. Induction programme

For newly recruited employees the aim of this programmed is to expose these personal to

the organization structure, its objectives, the type of production process & polices &way in

which the raw material purchased online &how it is tested against SITRA standard and thus

making aware about these standards.

2. Orientation programme


PRABHURAM MILLS LTD

It is given for orienting the personal towards the particular job to which they are

entrusted. Through these programs the necessary skills that are needed to perform he job in an

efficient manner in the mill is imparted in them through this training method.

Employee Welfare

Welfare includes anything that is done for the comfort and improvement of employees

and is provided over and above the wages. Welfare helps in keeping the morale and the

motivation of employees high so as to retain the employees for longer duration. The welfare

measures need not be in monetary terms only but in and kind/ forms. Labour welfare entails all

those activities of employer which are directed towards providing the employees with certain

facilities and service in addition to wages or salaries.

The organization has the following objectives in providing proper labour welfare.

1. To provide better life and health to workers

2. To make the workers happy and satisfied

3. To relieve workers from industrial fatigve and to improve intellectual cultural

and material conditions of living to the workers.

The basic feature of labour welfare measures are as follows

1. Labour welfare includes various facilities, services and amenities provided to

workers for improving their health, efficiency, economic betterment and social

status.

2. Welfare measures are in addition to regular wages and other economic benefits

available to workers due to legal provisions and collective bargaining .

3. Labour welfare schemes are flexible and ever changing. New welfare measures

are added to the existing ones from time to time.

4. The purpose of labour welfare is to bring about development of the whole

personality of the workers to make a better work force.

Employee welfare schemes

Prabhuram mills provide welfare facilities to their employees to keep their motivation

level high. The employee welfare schemes can be classified in to two categories via statutory and


PRABHURAM MILLS LTD

non statutory welfare schemes. The statutory schemes are these schemes which are compulsory

to provide by an organization as compliance to the low governing employee health and safety.

These include provisions provided in factories act 1948. The non statutory schemes differ from

organization to organization from industry to industry.

Statutory Welfare Schemes

According to the statutory welfare schemes the following provisions are included

1. Drinking water:- At all working places safe hygienic drinking water is provided.

2. Facilities for fitting: - sufficient seating arrangements are provided.

3. First and appliances: - First and appliances are provided and are readily assessable

so that in case of any minor accident initial medication Can be provided to the

needed employee.

4. Latrines and Urinals: - A sufficient number of latrines and urinals are available in

the office and factory premises and are also maintained in a clean condition.

5. Lighting: - proper and sufficient lights are provided for employees . so that they

can work safely during the night shifts.

6. Washing Places:- Adequate washing places such as bathrooms wash basins with

tap and tap on stand pipe are provided in the port area in the vicinity of work

places.

7. Changing rooms:- Adequate changing rooms are provided for workers to change

their cloth in the factory area and office premises. Adequate lockers are also

provided to the workers to keep their cloth and belongings.

Non Statuatory Schemes

1. Personal Health Care: - The company provider the facility for extensive health

check up.

2. Maternity and Adoption leave: - Employee can avail Maternity or adoption

Leaves.

3. Co-operative Society :- -Company maintains a Co-operative Society which

provides loan facility to the employees so as to meet there needs up to 20000

rupees money is lent to the workers.

4. Shelter :- company provides housing facilities to there workers


PRABHURAM MILLS LTD

5. Medi –claim Insurance Scheme :- This Insurance Scheme provides adequate

insurance coverage to employees for expenses related to hospitalization due to

illness, disease or accident or pregnancy.

6. Canteen facility : Company provides canteen facility to the employee to satisfy

these physiological needs. Canteen provides meals at reduced rate.

Promotion

The company is not providing promotion. It is done by government promotion from

lower to higher grade will be made subject to availability of vacancy. Efficiency, suitability and

seniority of the person for the higher post. Grade changes when person completes 10 working

years.

Internal Communication

Monthly meeting are hold and relevant information is passed on Management holds

review meeting every three months and minutes are communicated to all participants. The

review determines its continuing suitability, adequacy and effectiveness to assess improvement

opportunities. It is chaired by the chairman. Coordinated by government and Management

representative attended by functional heads.

Employee Shifts

There are three shifts for the workers and one compulsory off duty in a week.

1st Shift : 8 am – 4 pm

2nd Shift : 4 pm – 12 pm

3rd Shift : 12 pm – 8 am

Attendance

Method of entering (attendance) basis of punched system. Each permanent employee is

given green cards, badalies are given red cards and trainees, workers are given yellow cards.

Wages and Salary Administration

Payments are made on or before 5th of every month company provides overtime wages

for those who perform double duty for whom doing 2nd and 3rd shift continuously. Bonus is given


PRABHURAM MILLS LTD

as per company rule. There is ESI and provident fund benefits for eligible employees who

complete five years of serve including the training period.

The company prepares a pay slip which shows the details of the salary. A copy of it is

signed by each will be filed. These files are checked after 10th of every month.

Trade Unions

These are three trade Unions in the company. They are INTUC, CITU and UTUC. Which

they exist For the beneficiary of workers. These unions help to solve workers grievances. 15

members together can form union, now the leading union in the mills is UTUC.

Plant Safety Programme

The following prrecuationary measures are taken to deal any mishap that many … in the plant

area.

Fire and safety :- Sand buckets are placed in the plant premises.

Fire extinguishers and first aid box is provided in the plant especially accident prone

areas.

Safety masks, earpugs and gloves are provided

Training is given to personnel about the hazards involved and to how to tackle If it

happens.

An emergency door is provided in plant premise.

Employees of Prabhuram Mills during May 2009

Department No. on rolls

Prabhuram staff permanent 32

Trainees 80

Mill casuals 47

Senior mill casuals 11

Special scheme learners 43

Office and staff 17


PRABHURAM MILLS LTD

Total 230

SWOT ANALYSIS

The swot analysis provides information that is helpful in matching the firm’s resources

and capabilities to the competitive environment in which it operates. It is instrumentral in

strategy formulation and selection. The internal analysis highlights. Its strength and weakness

while the external analysis depicts its opportunities and threats . if a clear objective has been

identified, swot analysis can be used to help in the .. of that objective.

STRENGTH :-

1. Attribute of the organization that is helpful to achieving the objective.

2. Due to modernization of the mill good yarn are purchased.

3. The company has the good will in the market.

4. There is a good relationship between management and workers.

WEAKNESS

1. The workers are affected by dust and noise pollution.

2. The relationship between union and personnel department is not transparent up to the

required level.

3. Lack of transportation facility]

OPPORTUNITY

1. The Indian yarn market is considered one of the largest market in terms of volume.

2. The main input of the textile industry is yarn and this industry is growing and providing good

opportunities to the company producing yarn.


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THREATS

1. As a loss of making company the banks and other financial institutions are recusant to

provide loans.

2 . A change in the political system may lead to change in the management of the organization.

FINDINGS

Prabhuram mills Ltd has trade unions in the company.

The company always lays extra emphasis on maintaining the quality of product to their

level best.

Company has a good reputation for its product quality, employment practices and

customer orientation.

The company maintains a website www.prabhurammills.org.in which help the outsiders

to get a lot of information about the company.

Company is issuing safety marks and gloves to the workers but still many of them are not

making use of it.

Quality department keeps on ensuring the right quality on purchasing and issuing of

material.

Company is not doing recycling of cotton waste.

Staff are not fully satisfied with the wages.

Company is not getting enough raw material

Financial crisis waves strike badly, as company is now running loss.


http://www.prabhurammills.org.in/

PRABHURAM MILLS LTD

RECOMMENDATION AND SUGGESTIONS

Continued emphasis on technology up graduation is required.

Workers in the production department should be made compulsory to follow the safety

measure, they should make aware of the impacts.

Improve the grievance handling procedure.

Since illiterate workers better catch to posters than words, its good to place pictorials in

the production department so that to avoid accidents.

Improve the relation with employees.

If possible company should try to do recycling of cotton waste, or coordinate with

women’s welfare society so that they can make use of these waste for making pillows,

beds etc. This can generate revenue and provides more employment opportunity for

women.


PRABHURAM MILLS LTD

COCLUSION

Prabhuram mill is one of the leading manufactures of yarn in Kerala. Prabhuram mill is a unit of

Kerala state Textile Corporation Ltd; it is a Government of Kerala undertaking placed at Kotta

p.o Karakkad, Chengannur,Alappuzha. Demand of yarn product from public are very high

because the company manufacturers reputed yarn products, upholding ancient traditional

methods of preparation by adopting modern machinery and technology, under strict quality

control measures. The company can make huge profit by selling the product to the public but

30% of the sale made by the company to the Government institutions. The companies profit in

2009 is better than compared to previous years. The yarn products are packed in paper cones.


PRABHURAM MILLS LTD

BIBILIOGRAPHY

RESEARCH METHODOLOGY - C.R. KOTHARI

Vishwa Prakashan

Publishers..

PERSONNEL MANAGEMENT – C.B.GUPTA.

3rd Edition, Suites

Chand & Sons.

ANNUAL REPORT PRABHURAM MILLS,2005-2008

PRABHURAM MILLS SLIVER JUBILEE SOUVENIR 1997

WEBSITE ;www.prabhurammills.com


Documents

It Provides Direct Employment to Over 35 Million People Who Include Sub