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CHAPTER 1 INTRODUCTION

1.1 ABOUT INTERNSHIP

An internship is a method of on-the-job training for professional careers. Internships for professional careers are similar to apprenticeships for trade and vocational jobs. Although interns are typically college or university students, Internships may be paid or unpaid, and are usually understood to be temporary positions. Generally, an internship consists of an exchange of services for experience between the student and an organization. Students can also use an internship to determine if they have an interest in a particular career, create a network of contacts, or gain school credit. Some interns find permanent, paid employment with the organizations with which they interned. This can be a significant benefit to the employer as experienced interns often need little or no training when they begin regular employment. Unlike a trainee program, however, employment at the completion of an internship is not guaranteed. Internships exist in a wide variety of industries and settings. A typical internship lasts 612 weeks, but can be shorter or longer, depending on the organization involved.

1.2 IMPORTANCE OF INTERNSHIP Provides Experience & Knowledge

Classroom studies are confined only to books and theoretical learning. Application of these theories and lectures delivered in classrooms differ a little from the set format. Through internship, we get not only get a first-hand experience of these theories, but also learn the applications of these theories in real challenges. Also, the company exposure allows us to enhance their knowledge and contribute it to the company in their specialized fields.

Improves Skills
Several skills and tasks are necessary to accomplish a job effectively and efficiently. These skills are imparted to us during this tenure as an intern. It exposes us to skills, such as oral and written communication, presentation, leadership, planning, time, and project management. No matter how simple or difficult the task is, we are taught to take up the challenge and polish their skills to prove ourselves to the employers.

Boosts Self-Confidence
Doing an internship is a great learning experience in itself. The entire journey of internship allows us to identify the strengths and weaknesses, and use both of them to the best advantage of our job and company. This real life experience allows us to judge ourselves to where we stand and identify the abilities of completing the given tasks. All in all, undergoing an intensive internship program boosts the self-confidence and motivates towards facing big opportunities in future.

New Career Opportunities

Internship is the first ladder to success. Doing an internship in a specialized field helps to build up a good network. When a student enters a company, he is not regarded as an intern (despite being one), but as an employee who will give his best to the company. Further, if the intern is successful in proving himself worthy for the company, he may just land up getting a permanent position in the same company after completing the internship program.

Real Corporate Feel

Another major advantage of doing an internship is working in the real corporate environment to experience the workplace atmosphere. These programs are seen as great opportunities to utilize the time and knowledge to gain understanding and experience and make the most out of it in terms of converting it into a prospective career.

1.3 SCOPE OF INTERNSHIP

Provides an opportunity to learn about career interests. Provides exposure to the working world. Provides opportunity to utilize the talents and skills Helps to have an internal change based on the requirement of the organization Equips with the essential skills and provides training and experience in work. Provides an opportunity to get employed.

1.4 OBJECTIVES OF INTERNSHIP

To test the interest in a particular career before permanent commitments are made. To learn beyond the walls of the traditional classroom. To learn more about public relations by examining it from a practitioners perspective. To develop skills in the application of theory to practical work situations. To aid students in adjusting from college to full-time employment. To develop attitudes conducive to effective interpersonal relationships. To increase a student's sense of responsibility. To acquire good work habits. To develop employment records/references that will enhance employment opportunities. To acquire in-depth knowledge of the formal functional activities of a participating organization. To understand informal organizational interrelationships. To engage in experiential learning while developing knowledge, skills and awareness of the complexity of issues in the organization.

CHAPTER 2 INDUSTRY PROFILE 2.1 HISTORY AND GROWTH OF RUBBER INDUSTRY

The World Production of rubber was considered to be very unstable during the last few years. Comparatively, Indias production of rubber is consistent at the rate of 6% per annum. The Indian rubber industry has been growing in strength and important. This is the result of Indias burgeoning role in the global economy, India is the worlds largest producers and third largest consumer of natural rubber. Moreover, India is also one of the fastest growing economies globally. These factors along with high growth of automobiles production and the presence of large and medium industries have led to the growth of rubber industry in India. India is the third largest producers of rubber in the world. It is the fourth largest consumer of natural rubber. It is the fifth largest consumer of natural rubber and synthetic rubber together in the world. India is the worlds largest manufacturer of reclaim rubber. India and china are the only two countries in the world which have the capacity to consumer the entire indigenous production of natural rubber.

RUBBER CONSUMPTION IN INDIA

Automobile tyre sector Bicycle tyres and tubes Foot wear Belts and hoses Camel back and latex products Other products 50 % 15% 12% 6% 7% 10%

CHARACTERISTICS OF INDIAN RUBBER INDUSTRY

The following are the special characteristics of the rubber industry in the country, which make India a little different from many of the other natural rubber producing countries: India is a major producer and consumer of natural rubber. The rubber products manufacturing industry in India had been mostly inward oriented, catering to the domestic market. In recent years India has entered the global market exporting both raw natural rubber as well as rubber products. With its large population base, India is emerging as a large market for rubber products and with the opening up of the economy, import of rubber products has also been increasing in recent years. The rubber product mix in India is based mostly on dry forms of rubber, dictated by the requirements of the domestic market. The natural rubber / synthetic rubber consumption ratio in the country is presently 75:25. While the Indian tyre companies have been performing well, multinational tyre manufacturers are establishing production facilities in India. Manufacture of non-tyre products particularly high-value technical goods needs further investments

2.2 PRESENT SCENARIO OF INDIAN RUBBER MARKET

Indias rubber production varies between 6 and 7 lakh tons annually which amounts to RS.3000 crores. Seventy percentage of the total rubber production in Indian is in the form of ribbed smoked sheet (RSS).This is also imported by India accounting for 45% of the total import of rubber. The Indian rubber industry has a turnover of RS.12000 Crores. Most of the rubber production is consumed by the tyre industry which is almost 52% of the total production of India. Among the states, Kerala is the leading consumer of rubber, followed by Punjab and Maharashtra. The exports of Indian natural rubber have increased tremendously over the years and have reached 76000 tons in 2003-2004. Though, India is one of the leading producers of rubber but it still imports rubber from other countries. At present, India is importing around 50000 tons of rubber annually.

FACTORS CONTRIBUTING TO THE GROWTH

Like most of the producing countries, natural rubber production in India was solely export oriented during the first quarter of the 20th century. However, sustained growth of the rubber product manufacturing industry was evident since the mid 1930s. Historically, the commercial impetus for this growth revolved around three inter-related developments: (1) the implementation of the International Rubber Regulation Agreement (IRRA) in 1934 and the consequent domestic availability of NR at a lower price in India, (2) the entry of foreign companies in rubber product manufacture to capitalize the advantages arising from cheaper raw material and labour and a growing domestic market and (3) government patronage to the industry in the backdrop of the increased industrial requirements during the inter-war years and the second world war period. The post-war period witnessed a steady expansion of the industry. But the bulk of the consumption of rubber was accounted for by a few large units. But small scale units also could survive because of the relative profitability of rubber product manufacture and the extent of protection from external competition.

7 Government patronage to the industry resulted in liberalized import of rubber and other raw materials and protection from imports of rubber products. The net result was the graduation of India from an exporter of raw natural rubber to a net importer of the rubber and an exporter of finished rubber goods, although in a limited manner, by the late 1940s. At present there are over 4300 manufacturing units, including 58 tyre factories, turning out products worth US$ 7.7 billion, which is about 1.7% of the total industrial output of the country. The total employment generation by the rubber product manufacturing industry is 465,000. The natural rubber / synthetic rubber consumption ratio is 75:25, while globally the ratio stands at 44:56. The per capita consumption of rubber remaining at 1.0 kg, the market for 2rubber products in India, with its large population, is likely to grow significantly in the years ahead.

CHAPTER 3 OVERVIEW OF THE ORGANIZATION

3.1 COMPANY PROFILE ABOUT THE COMPANY

Fenner (India) Limited is the largest manufacturer of industrial and automotive V-belts, Oil seals and power transmission accessories in India with a large sales and distribution network across the country and a strong brand image, Fenner (India) Limited is undoubtedly the market leader in India. Fenner (India) Ltd emphasis on quality and customers satisfaction has earned respect and endorsement from major OEMs. The Company is a pioneer and has been a market leader both in terms of new product development and market research. Fenner (India) Ltd has regularly introduced state of the art latest products both for domestic and international markets. Today eight out of ten automobiles in India have at least one Fenner belt or oil seal in it. Apart from being the domestic market leader, Fenner (India) Ltd is also one of the big exporters of V-belts and Auto belts in the country with product being exported to over 40 countries including north and South America, Europe, Australia and South Africa.

Board of Directors Chairman H.V. Lodha Surendhra Mathora L.R.Puri Harshpati Singhania L.Ram Kumar : Raghupathi Singania

HISTORY
A Journey started 50 years back a long and momentous journey punctuated with epic achievements and break through. Right from the very first day to the present the motto has been the relentless pursuit to Achieve Customers Delight. Fenner (India) Ltd has witnessed consistent growth and achievements 50 years full of innovation, expansion and leadership. Fenner (India) Ltd trail blazing performance evolves from its philosophy of excellence and customer satisfaction.

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ORIGIN AND GROWTH

In 1929,J.H Fenner (India) Ltd was established in Calcutta as a trading company for selling of products imported from Fenner, UK. Fenner (India) ltd, originally incorporated as Fenner, cockill Limited on 15th July 1955,was prompted by J.H Fenner @co. ltd., and Madura Mills company limited with A&F Harvely Ltd as their Managing agents. The company commenced production in 1955 with fat transmission Belting and later introduced Industrial and Auto V-Belts, conveyor belting and oil seals. The company achieved substantial expansion in the year 1973, and the same year J.H.Fenner &co., (India) ltd., Calcutta a trading company of V-Belts and power transmission belts was amalgamated with the company. In 1975, the company name was changed to Fenner (India) Ltd., and by 1979 the foreign equality holding was reduced to 35%. In 1983, the company established material handling division for carrying on the business of designing and supplying of baggage handling and industrial material handling system. The company had been making good profits till the early 80s from 1980, competition in the V-Belt area increased substantially. Fenner has identified the need to create and accelerating organization that changes continually and skillfully .Always in alignment with our vision where we want to be by landing ways to keep changing and improving.

In 1987, the J.K.Group acquired share held by Madura coats limited and took management control of the company. The holding of J.K.Group and associates is 39.87% and that of Fenner international ltd is 30.07%.As a measure of diversification the company took over a 12,840 spindles cotton yarn spindles spinning unit near karur in Tamilnadu. The strengthened out derive through nightly focused action towards cost reduction, rationalization of work force and productivity improvement, the company turned around in 1988. In 1992 the company entered in the field of textile. In 1995, it took over another textile near Salem having 21,872 spindles. The capabilities were further expanded to 36,636 spindles.

11 The company ventured into wind mill power generated in

1994,and installed wind electronic generators in kanyakumari district and currently, the company are having 27 winds electrical, these wind mills have helped in supply of electricity of two companies, manufacturing operations of polymer and textile business at Tamilnadu at competitive cost. Currently the company is a leader in almost all its product areas. In V-Belts it has the highest market share selling more belts. Competitors put together in the last few years with a major thrust of research and development the company has been able to launch more& more innovative products.

3.2 OBJECTIVES
Fenner (India) Ltd sustain by the belief that perfection can be improved with proactive internal culture and by introducing new ideas. It has consistency delivered front line solution standard of productivity of quality, the company has achieved big presence in the global market place, ensuring reliable brand value. Improving performance in the development of product and reduce lead time. Achieve zero customer complaint status. Constantly upgrade and continuously improve operating system to enhance both internal and external customers

VISION
To sustain and enhance leadership status and enlarge business scope to worldwide markets, through a cohesive and committed management team that diligently plans, deploys the resources at hand towards the stated objective.

MISSION
Emphasize profitable growth by sustained delivery of superior products/services/solutions to worldwide customers.

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3.3 ORGANIZATION STRUCTURE

MANAGING DIRECTOR

GENERAL MANAGER

HEAD OF THE DEPARTMENT HR

HEAD OF THE DEPARTMENT

FINANCE

HEAD OF THE DEPARTMENT PRODUCTION

HEAD OF THE DEPARTMENT R &D

HEAD OF THE DEPARTMENT PURCHASE

DEPUTY MANAGER

SENIOR ACCOUNTANT

DEPUTY MANAGER

SENIOR MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

ACCOUNTS ASSISTANT

SUPERVISOR

REPORTING MANAGER

SUPERVISOR

SUBORDINATES SENIOR OFFICER

RESEARCH TEAM

SUBORDIATES

ASSISTANT OFFICER

HEAD OF THE DEPARTMENT FINISHED PRODUCTS

STORE JUNIOR OFFICER DEPUTY MANAGER SUPERVISOR

SUB ORDINATES

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PRODUCTS
Timing Belts. Oil Seals. V-Belts. Poly V Belts. Power Flex Belts

BRANDS IN INDIA
Power Flex Eco drive Power Train Pioneer Fenner Multi-Poll

INTERNATIONAL BRANDS
TOP DRIVE. TOP DRIVE ENDURANCE PLUS. TOP DRIVE COG POWER.

CUSTOMERS
S.NO PRODUCTS DOMESTIC CUSTOMER S Tata, Hyundai, Hero Honda, TVS, Bajaj, Ashok Leyland Tata steel, Saint Gobain INTERNATIONAL CUSTOMERS

Automotive Products

Toyota , Wyco

Industrial Products

Wyco (U.K), Chairvalli (Italy), Roelointos (Spain), Motion Industries(Australia).

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CHAPTER 4 FUNCTIONAL DEPARTMENTS

Fenner (India) Limited have various functional departments as follows Finance department Human Resource Operation/Production Purchase Rubber Mill Engineering Power Flex Poly-V Export-V FP stores (Finished product stores) Timing Belts Accounts IT (Information Technology) Sales & Distribution R&D (Research and Development) Quality Control Department

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4.1 HUMAN RESOURCE DEPARTMENT

HR POLICY:

Fenner (India) Ltd feels that our people are the value adding differentiators and primary source of our competitiveness. The company strives to be a preferred place of work, where people are inspired to be the best they can. Fenner (India) Ltd able to attract the best talent, ensures n transparency, fairness and equality in all its dealings with employees. Fenner (India) Ltd ensures work life balance by team work, nurturing talent and enhancing leadership capability in employees.

EMPLOYEE DETAILS

NO.OF EMPLOYEE 294 168 320 250

TYPES OF EMPLOYEE PERMANENT VARISU TRAINEE CASUAL

Shift Allowance
There are 3 shifts in this company

1st shift -8.am to 4.pm 2nd shift-4.pm to 12.pm 3rd shift-12.pm to 8.am

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Office Timing
The working hour for the office and administration staff is from 8.am to 5.pm.

Leave Allocation
The annual sick allowed for permanent employee is two days and privilege leave is formulated once in a year.

Permission
Permission allowed minimum 30 minutes for each employer. If two times per month which minimum and maximum of one hour .Incentive allowed to who are not taken leave and permission.

STRUCTURE OF HR DEPARTMENT Senior Manager

Deputy General Manager

Assistant Manager

Senior Officer

Officer

Assistants

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FUNCTIONS OF HR DEPARTMENT
Recruitment and Selection Payroll Analysis Grievance Handling Training and Development Performance Analysis Health and Safety Control

RECRUITMENT
SOURCES OF RECRUITMENT

Main sources includes Internal reference. Newspaper advertisement. Applications also obtained through NAUKRI.Com

RECRUITMENT AND SELECTION PROCESS: The company is receiving many applications from outsiders daily and also from existing employee referrals and the company is selecting the employee based on some qualifications according to the job requirements. The following process of recruitment and selection followed in Fenner India limited.

HRP

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Receiving and screening of Applications Short listing the candidates Interview Selection Medical examination Placement Orientation Allocation of department

INDUCTION
Induction is also called orientation is designed to provide a new employee with the information he or she needs to function comfortably and effectively in the organization. It is a planned introduction of new hires to their hobs, their peers and the company.

Typically, orientation conveys three types of information.

General information about the daily work routine; A review of the firms history, founding fathers, objectives, operations and products or services, as well as how the employees job contributes to the organizations needs. A detailed presentation, in a brochure of the organizations policies, work rules and employee benefits.

TRAINING AND DEVELOPMENT

The company provides the training to the new employees. They provide training to the existing employees regarding the new method and technologies. The training period to the new employees is maximum of two months.

19 Identifying the business goals. Preparation of annual training budget. Specification recommendation by head of the department. Training need identification. Preparation of training program. Training cost analysis.

Training and development program Fenner (India) Ltd believes that there is no end to learning .Training and development programs are ongoing process. All management staff are exposed to different training programs both technical and staff development. Fenner (India) Ltd have designed programs to cover their entire workforce in batches to lead them to involve in the growth and development of the organization. Managers who are identified for senior position are sent to management institutes like ASCI, IIM AND training establishment to equip themselves with the latest techniques in modern management concepts and practices. Training Methodology 1. Basics of training need identification: Attitude. Skill. Knowledge. 2. Need based training to meet the present and future challenges Behavioural. Technical.

3. Find out the effectiveness for continuous improvement. 4. Re-Assessment of employees.

20 PAYROLL In Fenner (India) Ltd, HR looks after the functions of payroll. These functions included preparation of the salary based on the attendance of the employees, which is given by the time office .The functions of time office is noticing the time in and time out of the employees by punching the hole in the attendance card .Closing day of the attendance in the time office is 20th of every month and remaining 10 days the HR department will assume that all the employees were worked except on Sundays.

FRINGE BENEFITS

The fringe benefits provided in Fenner (India) Ltd are classified as follows Medical Facilities Educational Facilities MEDICAL FACILITIES For workers there are two health care centers. They are provided free medical facility for workers, spouse and children. But the children should not be more than 22 years. For management employees can claim half of the amount, which they have spent for their treatment by providing medical bill to the top management. EDUCATIONAL FACILITIES Fenner (India) Ltd had a tie up with Tamilnadu Polytechnic College. Every year they are providing 3 DME seats and 4 polymer technology to the employees children and also further allowances are provided to them.

21 MOTIVATIONAL FACTOR Work experience awards 25 Years Award 35 Years Award 40 Years Award No Absenteeism Awards Best suggestion or Idea Awards Publishing Photos of Newly Marriage couple in the company Magazine On Birthday, Wishing the Employee with Greeting & Chocolates Yearly bonuses Best performer is motivated with giving gift voucher or cash prize.

PERFORMANCE APPRAISAL SYSTEM

It is transparent system .Initially goals are set for the president of the company. Once in a six months the activities is going on in order to find out how they performing to achieve their target. If their performance is not up to the mark then the reason is found out and they are trained to complete the allotted. At the end of the year annual appraisal is done and based on the individual performance weight age is given in the next years increment.

CRITERIA FOR PERFORMANCE MANAGEMENT AWARD

Employee involvement Quality of man resources Employee satisfaction and motivation Industrial relation Talent management Innovative or unique HR practices Quarterly people management award review Enhancing external HR brand value

22 HEALTH, SAFETY AND WELFARE MEASURES The need for providing welfare activities for the workers broadly received attention in our country in the early stages of industrialization. Employers were not generally to accept the financial burden on account of welfare activities. The Government intervenes using its persuasive and Legislative powers. The Factories Act 1948, provided for some amenities in respect if general as such services arrangement for travel to and from place of work and for the accommodation of workers employed at a distance from their houses, and such other services and facilities as contribute to improve the conditions under which workers are employed. Welfare work is differing from social work.

THE ENTIRE RANGE OF WELFARE ACTIVITIES IS DIVIDED INTO TWO GROUPS

1. Welfare and amenities within the predicts of the establishment via Rest room and shelters for taking rest. Drinking water Canteens Medical aid Uniforms and protective clothing The shift allowance

2. Welfare outside the establishment Housing facilities Education Recreation facilities including sports, cultural library and reading room activities. Medical facilities Holiday homes and leave travel facilities Workers co-operative including consumer stores Transport from the place of work Maternity benefits and enevolent funds

23 SAFETY Safety is an important management responsibility in industry. To ensure the safety and health of workers in a business enterprise, managers establish a focus on safety that can include elements such as: Management leadership commitment Employee engagement Accountability Safety programs, policies and plans. Safety processes, procedures, and practices. Safety programs audits. Safety goals and objectives Safety inspection for workplace hazards Safety training and metrics Hazard identification and control Safety committees to promote employee involvement

SAFETY COMMITTEE It consists of representatives from management and the workmen. Management Representative-3 Workmens Representative-3 Company Doctor-1 ACTIVITIES OF THE COMMITTEE Evaluate the monthly accident. Analysis of the accident and preventive measure. Check and improve the lighting and ventilation.

24 OTHER ACTIVITIES /CO ORDINATION OF SAFETY OFFICER

Accident report to inspector of factories. To ensure reduction of health problem through usage of safety appliances, exhaust machines periodical medical checkup. Testing pressure vessels. Testing hoists, good lift etc.

GRIEVANCE HANDLING PROCEDURE If any grievances occur, the HR manager along with the respective HOD carefully listens to the problem of an individual and tries to solve it. They mostly adopt WIN-WIN policy so that grievance will not turned as a dispute. If the problem was not solved then the individual will take the problem to the higher authority, if not the problem will be taken to the labour office then DCL, JCL and finally it will be taken to the labour court. RELATION WITH TRADE UNIONS The companys relationship with trade union is 100% cordial. There is only union in the company. The union existing in the company is an internal union and there is political inference in the union.

Other Major Activities of HR Department

1) Integrated Management System a) Coordination with all departments. b) System up gradation. c) Document preparation. d) Auditing arrangement

25 2) Medical Meeting a) Once in a quarter b) Health relater issues. c) In presence of doctor, head of the department and safety officer. 3) Reliving formalities a) Issuing relieving order b) Service certificate c) Final settlement 4) Counseling through internal and external counselor. 5) Travel rules. 6) Medical scheme. 7) Employee referral scheme. 8) Talent management. CORPORATE SOCIAL RESPONSIBILITY Eye camps. Assistance to hospitals. Surplus food from canteen to an orphanage. Upkeep and maintenance of social forestry in front of factory. Environmental friendly effluent treatment plant. Donations to build schools, orphanages and other organizations. Activation of Fenner Auto-signalling system and water foundation at traffic junction near kalavasal. Adult literacy project. 8 centres. 240 beneficions.

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4.2 FINANCE DEPARTMENT

OBJECTIVE
Maintenance and Reporting of accounts related functions according to statutory regulations and advice on reduction of expenses.

DEPARTMENT CHART
FINANCIAL MANAGEMENT

Cash management

Tax

Costing

FUNCTIONS
Preparation of budget and all matters relating to financial requirements Management of funds Liasion with bank Inventory Cost control concept Tax calculation

ACCOUNTS MAINTENANCE
Computerized records are maintained by company and also integrated with each other department inside the organization, the accounts are maintained using the packages in Excel and Tally.

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BUDGETING
Based on the past 3 year trend, budget is prepared, cost incurred for past 3 years is calculated, and sales are calculated. After that, actual is compared with the budgeted and deviation is identified and report is sent to the U.K head office.

INVESTMENT POLICY
In Fenner (India) Ltd, investment is made in fixed deposit short term deposit.

FIXED DEPOSIT SCHEME AT FENNER

The fixed deposit programme of Fenner (India) Ltd is open for renewal and fresh investment. The one-year interest rate is quite attractive. The company's fundamentals have also remained strong. An investment up to one year can be considered. Beyond that, however, it can be avoided as the incremental returns are not large enough to warrant a long exposure.

Scheme and features

Fenner (India) Ltd offers the non-cumulative fixed deposit scheme only. The rates are compounded at quarterly rests and paid at quarterly intervals. The interest rates are 7.50 per cent for one year, 7.75 per cent for two years and 8 per cent for three years. Since the interest is compounded at quarterly rests, the effective yields for the same are 7.71 per cent for one year, 8.3 per cent for two years and 8.94 per cent for three years. The minimum deposit for the scheme is Rs 20,000 and, thereafter, in multiples of Rs 5,000.

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NORMS OF FENNERS FIXED DEPOSIT

According to the norms of RBI, FENNER (India) Limited is providing 35% (10% to shareholder and 25% to the company). The fixed deposit is calculated by share capital, reserves and surplus of the firm. The debentures are detected from the reserves and surplus before interest is calculated. It is calculated once in a year. Interest warrants are encashable at par at specified branches of IDBI Bank. The minimum amount of deposit is Rs.5000.The additional amount are payable in multiples of Rs.1000. The interest rate is calculated by Fenner (India) Ltd is given in below tabular column:

TERM DEPOSIT (NON-CUMULATIVE)

PERIOD 1 year 2 year 3 year RATE OF INTEREST/ANNUM 9.00% 9.25% 9.50%

The interest is calculated once in a quarter, that is once in four months and payable quarterly on 31st March, 30th June, 30th September, 31st December and on maturity.

Reasons for not using Cumulative Term Deposits in Fenner (India) Ltd

To minimize the total outflow at the time of Repayment Mode of calculation will be simple Liabilities are not accumulated Easy handling of deposits

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BOARD RESOLUTION TO ACCEPT DEPOSITS

Text of advertisement approved by the board

Filing the text advertisement to R.O.C

Release of advertisement in English daily and vernacular daily

Issue of application

Acceptance of deposits

Issue of FD receipts

Payment of receipts

Repayment / Renewal / Premature withdrawal

Maintenance of statutory registers

Deduction of tax at source

Filing of TDS Return

Issue of TDS Certificates

Filing of Return of Deposits

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OTHER HIGHLIGHTS OF THE SCHEMES

Payment should be made by means of an A/C Payee Cheque / Bank Draft to any of the Offices of the Company or offices of the authorized Agents or Brokers. Outstation depositors may deduct the demand draft charges while remitting their deposit amount by way of demand draft payable at Madurai or at places where Companys offices are situated.

APPLICATIONS
Deposits are acceptable on Application Forms prescribed by the Company containing detailed terms and conditions available at the office of the company mentioned herein and with the following authorized Agents: 1) M/s. Bajaj Capital Limited. 2) M/s. Eastern Financers Limited. 3) M/s. Ganesh Financial Consultancy services. 4) M/s Integrated Enterprises (India) Limited. 5) M/s J.M Financial Services Pvt Limited. 6) Karvy Stock Broking Limited. 7) Bluechip Corporate Investment Centre Limited. 8) Om Spectrum Financial Consultants Pvt limited. 9) India Infoline.Com Distribution Co Limited. 10) Cholamandalam Distribution Co Limited. 11) Upendra Dalal & co. 12) Enam Securities Pvt Ltd.

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RULES FOR APPLICATION

The cheque or demand draft should be payable to FENNER (India) Ltd., and crossed Account Payee. Outstation applicants may remit the Deposit either by way of Cheque or Demand Draft at Madurai or at the Companys aforesaid Offices. Those who remit the Demand Draft may deduct DD charges while remitting their deposit. No deposit will be accepted from Indian Companies, non-resident or foreign nationals and OCBs. If the deposit is in the name of Minor, the Guardian must attest or sign the Application Form. The interest and principal would be payable to the Guardian whose signature is given in Application Form.

RENEWAL/REPAYMENT OF DEPOSIT
The Deposit shall be payable only on or after the due date indicated on the Fixed Deposit Receipt. The payment of principal and interest will be made by warrants payable at par at branches of IDBI Bank. No further intimation or notice regarding maturity of Deposit will be given to the depositor. The Deposit Receipt in original duly discharged on requisite revenue stamp by the first named depositor should be sent only to the Registered Office of the Company at Madurai atleast 15days in advance of the date of maturity for repayment/renewal of the deposit amount. Renewal will be considered on the fresh application form. The Company may at its sole discretion permit the depositor to withdraw the deposit amount prior to maturity. For the purpose of such premature payments, the interest will be allowed at the rate applicable subject to deductions in terms of the provisions of the Companies (Acceptance of Deposits) Rules 1975, as amended from time to time.

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TAX RATES
The CENVAT is around 12%. Input tax credit shall be allowed for the purchase of goods made within the state from a registered dealer for the purpose of Resale within the state Input for manufacturing or processing of goods in the state Use of containers, labels and other materials for packing of goods in the state Inter-state trade Agency transaction as prescribed For the rubber products the tax rate fixed was 12% and it may change every year based on the budget prepared by the finance minister. The tax policies are based on the central sales tax act. The tax have to be paid properly if not it will be recorded as an offence and the officers responsible are punishable. The company have separate officers to maintain and deal with the central and the sales tax.

INCOME TAX
Based on the return, income tax is calculated and once in 3months tax is paid and report is prepared and sent it to the Fenner (India) Ltd head office, U.K.

MONTHLY SALES TAX

Due to sale of conveyor belts 3% of sales tax is calculated and paid to the government. This amount is collected from the customer and paid to the government.

COSTING
Maintenance of costing is the very important factor in Fenner (India) Ltd, raw material cost, input-output ratio, overheads-direct and indirect costing informations are entered in the system based on that budgeting is done.

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4.3 PRODUCTION DEPARTMENT

In Fenner (India) Ltd, production department produces the goods under intermittent production system .They have adapted zero inventories to avoid keeping goods under stock. The products produced under Fenner are automotive products. The major products produced here are Oil seals, V-belts, Timing belts, Power flex. The raw materials required to produce these products are Neoprene GRT, Neoprene WRT, SBR 1502, N-3980 Nital Rubber, N 3345, AR71 Rubber, Viton, Silicone 6140, ISNR Rubber, Polyester flock. The production undergoes for three shifts. They have got ISO 14001 certification for quality standards.

MATERIALS HANDLING EQUIPMENT

The equipment used for handling materials is FORK LIFT. It is of different capacity such as 1 tone, 2 tones etc.

BEST MANUFACTURING PRATICES

The defects of producing products are getting reduced by means of adapting SIX sigma concepts under production. They have also adopted Five S concepts for maintaining their organization and also practicing TQM for maintaining their quality level.

MAINTAINENANCE
In Fenner (India) Ltd they are practicing both preventive and breakdown maintainenance since the production runs throughout the day. Every Sunday they allow the engineers to verify conditions of the machineries in order to maintain the machines properly.

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PRODUCTION POLICY
1. To demonstrate and maintain leadership in design development manufacturing and supply of engineering rubber products. 2. To continually improve to quality and reliability of products by consistently adhering to quality management system. 3. To enhance delight in terms of quality cost, delivery and expatiations. 4. To improve employee, Satisfaction, Safety and environment friendliness. 5. To be in front line- to in the business by upgradation based on technological capabilities. Best Manufacturing practices followed by Fenner (India) ltd: Lean manufacturing TQM (Total Quality Management) TPM (Total Productive Management) Poka Yoke (Error Proof) They are working hard to avoid the seven type of production lossess such as value loss, processing loss, accuracy loss, timing loss, idling loss, communication loss and cost loss.

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PRODUCTION PROCESS
It deals with the production of V-Belts under the category of automotive belts .The following are the process involved in the production of V-Belts.

Bias cutting and sandwitching

Building

Pot curing

Cooling

Stripping

Cutting

Side grinding

Inspection

Coding

Dyeing and arrival

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BIAS CUTTING
It involves 2 processes First process includes cutting of rubber sheet in 650mm. Second process includes pasting of rubber sheet (which has been cut in fist process) into another rubber sheet in order to make rubber sheet stronger.

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BUILDING
It is the process of putting different materials together. In this stage the workers will build 3 materials together by way of using an appropriate mould.

It involves 3 processes. First process comprises of pasting the label(which consist of material code and companys name) in the rubber sheet and rolled on Second process comprises of rubber sheet is then rolled on with the help of cord(which is a thick thread like substance) In third process a material called Jacket is rolled above the cord. The output from the building process is termed as Sleeve

CURING
In this stage the sleeve along with the mould will be heated at a specific temperature in order to merge the material with the mould. The inner pressure of heating is 80c The outer pressure of heating is from 150c-180c

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COOLING
In this stage the sleeve along with the mould which is heated will move on to the next stage of cooling. Cooling is done for 5 minutes in order to make the sleeve and mould flexible.

STRIPPING
Stripping is the process which is done in order to separate the mould from the sleeve.

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CUTTING
Cutting plays vital role in belt manufacturing .cutting can be classified in two types.

1) Reverse cutting _

Angle may differ from 26c-40c

2) Forward cutting_

40 Power flex have two types of cutting machines 1) Scholz cutting machine: It is an automatic cutting machine. It has an advantage of low waste generation. It has a variety of mondrel for different angle belts. It is faster than Japan cutting machine. It includes high cost which is the main disadvantage of this machine.

2) Japan cutting It is a semi automatic machine. This machine incurs low cost is the main advantage. A huge amount of machine is general from this machine. Its work is to cut the belts from the sleeve. It contains two shape knives. One knife is to cut the waste and another one is to cut the belt.

SIDE GRINDING
Side grinding is the process for smoothening the edges of the belt after cutting is done. It is done in order to manufacture belts which are completely flat and even, without any rough areas.

INSPECTION
Inspection is done in order to check whether the finished belt (product) is having any lumps, holes, over cording etc.

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CODING
Coding is done in order to check the length of the finished belt by way of using two pulleys in varying sizes. At the stage the belt which will be fitted according to the fixed length it will move on the relevant process. The belt which will not match the criteria, it will be rejected and termed as waste. It will come under product waste.

DYEING AND ARRIVAL

In this stage the finished belt is sinked into a black colour solution in order to make the appearance of the belt more attractive (black).

RAW EDGE COGGED BELTS

FEATURES Longer better life Better Battery charging Increased Engine Power Superior Engine cooling and zero slippage belt

42 TIMING BELTS FEATURES Accurate speed ratio. Compact design, light weight. Quick easy fitting. Economical. No belt slippage. Noise free, corrosion free. Maintenance free. No lubrications The main objective at the time of production was Zero accident Zero breakdown Zero Complaint Zero Defect The regular customers of Fenner products are Maruti, Ford, TVS motors, Bajaj auto, Daewoo motors, Royal Enfield motors, Ashok Leyland, Toyota, Eicher motors, Swaraj Mazda, Indian railways etc

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4.4 SALES CO-ORDINATION DEPARTMENT PROCESS

Customer order

Analyzing the order

Instruction from Sales dept to production dept

Purchase of Raw material

Raw material to Production

Finished goods to Sales dept

Sales dept to customers

Sales co-ordination department plays a important role in Fenner (India) Ltd. The sales co-ordination department mainly handles the order placed by the customers. Based on the customers order the sales co-ordination department will instruct the purchase department to purchase the raw materials. Before the raw materials reach the purchase department, the quality of raw materials were inspected by the gate office. Then the raw materials are move towards production department. After the arrival of raw materials the production department, manufactures the required product based on the order placed by the sales department. Until the products get delivered to the customers it will be in the store under the control of sales coordination department.

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QUALITY CONTROL
Fenner (India) Ltd has been awarded with the below quality certification: ISO 9001:2000 (for Design and Manufacturing of V Belts for Industrial Appls). ISO/TS 16949:2002 (for and of V Belts, Timing Belts, Oil Seals and Moulded rubber Parts for Automotive applications). API (American Petroleum Institute) First and one and only company Accredited with this certification. ISO 14001:1996 (Environmental Management system Standard) OHSAS 18001 (Occupational health safety assessment). TPM (Total Productive Maintenance) approved by JAPAN UNIVERSITY. The above certification fixs the standard for the quality of the production so the quality is been maintained & retained.

VARIOUS TYPES OF TESTING

Product testing Safety testing Drum friction testing Laboratory flame testing Gallery fire testing Electrical resistance testing Tear Strength testing Dynamic testing

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4.5 PURCHASE DEPARTMENT INTRODUCTION

The initiative functioning of the purchase department is with the indents from the stores department normally, purchase department maintains the supplies list of purchasing of items. Stores department receives indent from the department. Then the stores department checks the supplies list for supply of requested items. Then the quotations are invited from various suppliers. After receiving quotations from various suppliers it will be processed and checked against convenience efficiency rate and conditions for the comparative statements based on pre- defined for favorable conditions a supplier is selected. Supplier purchase order consist of various information like list and delivery schedule with the terms and conditions a copy of purchase order is sending to and account department also include generation of remainder note to suppliers for every non-delivered goods after the delivery date is expired. The goods received is verified against goods inwards note (GIN) generated by stores department any generation or modification is quality rate and others.

IMPORTANCE OF PURCHASE DEPARTMENT

Purchasing refers to a business or organization attempting to acquire goods or services to accomplish the goals of the enterprise. Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations. Typically the word purchasing is not used interchangeably with the word procurement, since procurement typically includes expediting, Supplier quality, and Traffic and Logistics (T&L) in addition to purchasing.

46 PURCHASING PROCESS Product requirement (i.e.) raw material Select vendor Test product Get quotation Negotiate discount Place order Follow up Material to production

PURCHASE REQUISITION
For manufacturing process production department send purchase requisition slip to the purchase department, items needed for production is specified in the requisition slip and it is sent to the purchase department.

SELECTION OF SUPPLIER
After receiving the purchase requisition from production department they will prepare the quotation and they receive various quotations from different sellers. According to low price with good quality supplying supplier is selected and order is placed to them sample of material is received from the supplier before purchasing the material.

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EXISTING VENDORS
Vendors are supplying various items are treated as approved vendors on the basis of their past performance in supplying the respective items.

SELECTION OF NEW VENDORS

Based on the information on vendor capabilities, manager (purchase) prepares a vendor appraised report and forwarded to MD, with Purchase manager in consultation with M D, will negotiate price and payment terms with the vendor, finalizing the trial order will be placed. The trial order will be authorized by M D. If the ordered material receive within the schedule time and conforms fully to requirement the trial purchase order, the vendor will be approved by M D and be enrolled in the approved vendors list.

EVALUATION OF VENDORS
The approved vendors will be evaluated by manager (purchase) once in six months on the basis of their performance. The performance parameters for the evaluation will be quality and delivery performance.

PLACEMENT ORDER
After selecting the supplier, placement of material is made.

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CHAPTER 5 TRAINING EXPOSURE

5.1 LEARNING OUTCOMES

The organizational study helped me to know about the real industrial activity which in turn helped for the better understanding of the concepts which have been studied theoretically. The study helped me to know the structural working of an organization and the basic functioning of all the departments. As a trainee, I had a good opportunity to communicate with organization people. I also learned how to interact with higher officials and how to survive at a new place. The study helped me to know about the automotive industry as a whole and the international business environment. I practically had a chance to learn about interpersonal skill, teamwork, listening skill etc.

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5.2 SWOT ANALYSIS

STRENGTHS Proactive initiation on environmental related issues. Awareness about emerging technology, management and market environment. Organized/institutionalized mechanism/systems for sourcing of raw materials. Level of skills and knowledge related to quality, productivity, financial etc. Research and Development activities for new product development and existing product improvement. Investment interests for new projects / developments. Trouble free supply of input materials for processing.

WEAKNESS Under utilization of machinery resources. Environmental pollution due to processing of rubber. Poor employee productivity. High cost of new spare parts and high cost of maintenance. High temperature and heat inside the production plant due to processing machines exhaust. Sample development time is high due to the information and trail sample transformation across the value chain of the company. OPPORTUNITIES Huge volumes of orders from exports and local sectors. Mass production capacity is available and unused. Exposure to better work practices and technology.

THREATS Non-tariff barriers like, Social accountability, environment management systems. Scarcity of water. Stringent pollution control norms. Time taken to produce a single unit of product output.

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CHAPTER 6 CONCLUSION
The training at Fenner (India) Limited has helped to gain corporate knowledge about various functional department. The organization structure describes the delegation of power and authority in the organization .The training has given good experience to perform the activities that are allocated within a scheduled time. The companies continuously invest not only in technology and world class manufacturing facilities but also in market developing across the globe. The company believes that excellence is the moving target and hence it learns and improves continuously by bench marking with the best in class. The training has helped to improve the interpersonal skill in group co-ordination and moral, also the organization has provided a good climate for learning and growth for trainees.