SPINNING MILL

A spinning mill is a labour intensive industry and it provides

ample job opportunities. Cannanore Spinning and Weaving Mills is
a unit of the subsidiary of NTC. The registered office of APKK & M
is located in Bangalore. At present the capacity of the Cannanore
Spinning mill has increased to 25920 spindles. The company is a
spinning mill with weaving facilities. But currently no weaving
process is going on in the mill.
Spinning mills used ‘Line Shafting’ which is the means by
which the power of the steam engine is transmitted along rotating
shafts (rods) to the spinning or weaving mills. Now, however
electricity is being used which is much faster than hand spinning. Yarn
is the final product of the mill. To maintain the quality aspects an
efficient quality control team functions in the mill.

Every organization needs to have well-trained and experienced

personnel to perform the activities that have to be done. If the current
or potential job aspirant can meet the requirement, training is not
important. But when this is not the case, it is necessary to raise the skill
levels and increase the versatility and adaptability of employees.
Inadequate job performance or a decline in productivity or changes
resulting out of job redesigning of technological changes requires some
type of training and development efforts. As the jobs become more
complex, the importance of employee development also increases.
 THE TEXTILE MILL INDUSTRY

Cotton/man-made fibre textile industry is the single largest

organized industry in the country employing nearly 10 Lakh workers.
Besides this, there are large numbers of ancillary industries dependant
on this sector such as those manufacturing various machinery,
accessories, stores ancillary and chemicals. Even on a modest
assumption that a workers family comprises of five persons, the direct
dependents on the organized mill industry itself works out to about 50
Lakhs.

Out of the 1837 cotton/man-made fibre textile mills, 192 mills

are in the public sector, 154 mills in the co-operative sector and 1491
mills are in the private sector.

Evaluation of the Textile Mill Industry

Whilst farmers were developing new and better methods of

agriculture, life in other areas of work had changed little for hundreds
of years. Early in the 18th century most of the population lived in small
rural settlements and only a few people lived in town.

Many people worked as producers of woolen and cotton cloth.

They cleaned, combed, spun, dyed and wove the raw materials into
cloth and this work was done in their own houses. This type of
production has become known by the general term of domestic
(cottage) industry. Work within the cottage industry was usually
divided up between the members of one family. The women and girls
were responsible for cleaning the sheep fleeces, carding the wool and
spinning it.
 The process of weaving was physically hard work and
traditionally it was the men who were responsible for it. Generally at
regular intervals a cloth merchant visited each handloom weaver’s
cottage. He would bring the raw materials and take away the finished
cloth to sell at the cloth hall.

As soon as the new wool arrived, it was washed to clean out all
the dirt and natural oil. After this it was dyed with colour and carded.
This was the process of combing the wool between two parallel pads of
nails, until all the fibres lay the same way. Next the carded wool was
taken by the spinner and using a spinning wheel the thread was wound
onto a bobbin.

The spun yarn was taken to the loom to be woven. In the

weavers cottage the loom was often to be found on an upper floor.
There are large windows in the room to let in plenty of daylight.
Working of the loom was quite strenuous work, which is why it was
traditionally the work of the men of the household.

However, with the advent of the industrial revolution all the

processes of yarn and the subsequent production of cloth underwent a
dramatic change. The industrial revolution brought about the wide
spread replacement of manual labour by machines. Goods that were
traditionally been made in the homes or in the small workshops began
to be manufactured in factories. Productivity and technical efficiency,
improved in part through the systematic and practical knowledge of the
manufacturing process.

Spinning is the process of creating yarn (or thread, rope, cable

etc.) from various rows of fibre materials. Several fibres are twisted
together to bind them into strong, long yarn. Characteristics of the yarn
vary based on the materials used, fibre length and alignment, quantity
of fibre used and degree of twist. The earliest spinning probably
involved simply twisting the fibres with the hand. Later the use of stick
to help twist the fibre was invented.

The spinning wheel was then developed which allowed

continuous and faster yarn production. Spinning wheels are either foot
or hand powered. Modern powered spinning used line shafting, which
is the means by which the power of the steam engine is transmitted
along the rotating shaft to the spinning or weaving mills. Now,
however, electricity is being used which is vastly faster than hand
spinning.

Another major invention was the power loom. The power loom
was a steam powered mechanically operated version of a regular loom,
an invention that combined threads to make cloth. In 1785, Edmund
Cartwright patented the first power looms and set up a factory in
Doncaster, England, to manufacture cloth. William Horrocky and
Francis Cobot Lowell improved it upon.

Francis Cobot Lowell was an American businessman and the

founder of the world’s first textile mill. Together with inventor Paul
Moody, Lowell created a more efficient power loom and spinning
apparatus.

All this accelerated the growth of the mill industry with more
production capacity, and the labourers employed in the industry,
rising to millions.
Present Scenario

Global trade in textile and apparels is expected to increase from

US $ 356 billion in2003 to US $ 600 billion by 2010. The way forward
for the textile mill sector is through transforming the sector from a
resource intensive to knowledge intensive, highly innovative sector
with high added value products and services. This can only ensure
sustainable growth and jobs in the future. It would also help to secure a
competitive advantage, which would be based on the best new products
and processes in the world. The industry has made tremendous efforts
in the last years to invest in new productive assets, to streamline
operations and to intensify their innovation activities. To achieve a
transformation, investment is needed in technological innovations that
would assist industry in its transition from resources intensive to a
knowledge intensive sector.

The Indian Textile Industry – a legacy of its own

The Indian textile industry has a great legacy, which is
perhaps unmatched in the history of India’s industrial development,
India’s textile industry evolved and developed at a very early stage and
its manufacturing technology was amongst the best. India’s manually
operated machines were among the best in the world and served as a
model for production of the first textile machines were among the best
in world served as a model for production of the first textile machines
in newly industrialized Britain and Germany. India’s textiles were
sought after for their finesse, quality and design and attracted people
from across the globe like the Chinese, Malaysians, Portuguese etc.
Colonization put an end to India’s glorious textile legacy. By 1880, the
domestic market had grown to be served solely by the British
manufactures. One of the aspects of freedom struggle led by Mahatma
Gandhi was to weaken the British textile industry by weaving
homespun clothes, as he was convinced that the textile sector would be
a catalyst in advancement of the Indian population.

Post independence, till 1980, the Government of India put

numerous restrictions to ensure mechanization did not occur, labour
intensive textiles were produced, which in effect led to increase in
price, and decrease in productivity.
 Structure of The Indian Textile Industry
The Indian Textile mill industry’s structure is as follows:

Indian Textile
Mill Industry

Organised Unorganised
Sector Sector

Mill Sector Handloom Hosiery Powerloom

(3%) Sector Sector (97%) Sector

(% share in total cloth

production)
 Company Profile
CANNANORE SPINNING AND WEAVING MILLS(APKK & M) LTD

ORIGIN

Cannanore Spinning and Weaving Mills was originally started

by a private owner Shri. Keyath Damodar in 1948 with about 20,000
spindle capacity. The mill earned profit and had no problems till 1970.
Thereafter the company incurred heavy loss due to various reasons and
hence the management was taken over by the Government of India.

The mill was nationalized under Nationalizations Act with the

effect from April 1st 1974 and is placed under National Textile
Corporation (NTC). Since the production capacity of the mill has
increased to 24,000 spindles. The Government introduced new
machines and the mill functioned well till 1980. Thereafter the
company again incurred loss for many years. Being a Government
undertaking, financial support was received from Government and
hence the mill was running without much problem. Furthermore the
mill along with some other NTC units was referred to the ‘Board of
Industrial and Financial Reconstruction’ (BIFR) under the Stock
Industrial Company’s Act.

LAND AREA STATEMENT

Area of colony compound : 4.21 acres

Area of mill compound : 8.32 acres

Pump House : 0.02 acres

Road : 0.04 acres

Total area : 12.59 acres

ADDRESS

CANNANORE SPINNING AND WEAVING MILLS,

UNIT OF NTC (APKK & M) LTD,

KAKKAD,

KANNUR – 670 005

KERALA STATE

National Textile Corporation’s Subsidiary

The mill is a unit of subsidiary of the NTC. APKK & M is the

subsidiary under which this mill functions. APKK & M stands for
Andhra Pradesh, Karnataka, Kerala and Mahe. The registered office of
the APKK & M is located in Bangalore (Karnataka). All the mills
under APKK & M, including Cannanore Spinning and Weaving Mills
have to report to this Head Office regarding all official matters. Shri.
Ramachandra Pillai is the present Chairman and M.D. of the APKK &
M subsidiary. Shri. T.V.Jayakrishnan is the General Manager of the
Cannanore Spinning and Weaving Mills.

National Textile Corporation (NTC)

The holding company of Cannanore Spinning and Weaving

Mills is the NTC Limited. It was set up with the main objective of
managing the affairs of the Sick Textile undertakings taken over by the
Government. It was also proposed to rehabilitate and modernize this
mill after the takeover and expand them wherever necessary with a
view to making them economically viable. NTC was incorporated in
April, 1968 and started functioning in October, 1968. At present it is
the holding company of the nine subsidiary corporations namely, NTC
(MP), NTC (GUJ), NTC (TN), NTC (Pondichery), NTC (UP), NTC
(West Bengal), NTC (Assam), NTC (Bihar & Orissa) and NTC (APKK
& M).

NTC Ltd. has an authorized capital of Rs.585 Crore and a paid

up capital of Rs.540.10 Crore, which is fully owned by the
Government of India.

Finance

Financial assessment is the backbone of every industry. The

company has a cash credit account with SBI, Kannur. They have
curtailed the company credit unit from Rs.100 Lakhs to Rs.60 Lakhs
from September, 2002 onwards which has affected the company badly.
From there onwards efforts are made to restore the units by taking up
the matter with their Zonal Office. But currently no credit facility is
provided by SBI.

Production

The mill is a spinning unit and the final product is yarn on cone
in PV/PSF counts. The following counts are produced 45 s PV (65:35),
60s (65:35) and 60s PSF.

Raw material

The company is using Polyester Stable Fibre (PSF) and Viscose

Staple Fibre (VSF). Their qualities are checked and supplies are
satisfactory. Depending on the consumption, a stock level of 12 to 15
days is maintained.

Sales

The market for yarn is a highly competitive one and therefore the
prices keep fluctuating which in turn affects the quantity demanded.
The main consumers of yarn are weaving merchants and looms.
Products range

Yarn is the final product of the Spinning Mill. The yarns from
the cops are wound on paper cones called Cone Yarn. Each cone yarn
contains 1.5 Kg of yarn. Usually handloom weavers need Hank yarn
and the well organized sector cone yarn.

Machinery

Most of the machines installed are old. Some of them are new.
The old machines are reconditioned after a period of 10 years.
According to the BIFR, the company is planning to install new highly
technical and modern machines as the machines now used in
Cannanore Spinning and Weaving Mills are giving less productivity.

Building

The condition of the factory building is dilapidated and some

roof strengthening work has been attended to which is only temporary
in nature. Urgent attention has to be paid towards this matter.

Number of workers

There are around 550 workers and 19 administrative staff

working in the mill. Three shifts are functioning from 7:00 am to 3:30
pm, 3:30 pm to 12:00 am and from 12:00 am to 7:00 am. Both male
and female workers are employed in all sections of the mill. Different
categories of workers include permanent, temporary and gate badlies.
Trade unions are functioning in the mill and they educate the workers
and safeguard their interests. Further they have a very cordial
relationship with the management.
Quality control

Routine quality control check up is done in each department on a

regular basis in order to ensure quality norms of the yarn. To monitor
their quality aspects an efficient quality control team is functioning in
the mill. Apart from the regular samples of input of each department is
being sent periodically to research institutes like SITRA, Coimbatore
and Textile Committee Testing Laboratory in Kannur. As per the study
report obtained from such research the necessary changes are being
done in the processing in order to maintain standard quality norms.

PRESENT POSITION OF THE MILL

The revival package scheme was introduced and the process is

now going on. Introduction of new machines and new workload are
included in the revival scheme with an objective to make the mill self-
sustaining without taking any financial help from the Government. The
whole work plan is currently slowed down and the management is
hopeful that the plan would be implemented as soon as possible.

It is also planning to become fully computerized in the

forthcoming future. After revival this mill too will be automated and
the workforce will be reduced with most of the workers being relieved.
 ORGANIZATIONAL STRUCTURE

Accounts Spinning Labour Welfare Electrical

Manager Manager Officer Engineer

Assistant
Electrician &
Accountant Spinning Time Officer
Wireman
Manager

Assistant Head Time

Shift Supervisor
Accountant Keeper

Cashier Store Keeper Shift Clerk

Cost Guard Store Clerk

PRODUCT PROFILE

In Cannanore Spinning and Weaving Mills yarn is the final product.

Different quality patterns of yarn are:

 60s PV
 45s PV
 45s PVht
 45s PVsht

Yarn is a long continuous length of interlocated fibres, suitable for

use in production of textiles sewing, knitting, weaving and rope
making. Very thin yarn is referred to as thread. Yarn used for fabric
manufacturing is made from spinning short length of various types of
fibres. Yarn is usually measured by weights. Synthetic fibres which
have high strength, artificial lusture and fibre retardant qualities are
blended with natural fibres which have good water absorbents and skin
comforting qualities in different proportions to manufacture yarn for
fabrics. The most widely used blends are cotton polyester and wool
acrylic fibre blends. The yarns from the cops are wound on paper cones
called cone yarn. Usually handloom weavers need hank yarn and the
well-organized sector cone yarn.
 PRODUCTION DEPARTMENT
The most important task of the production management is to deal
with decision-making related to production process so that the goods
manufactured are according to the specifications in the required
quantity, at minimum cess and as per schedule.

HIERARCHY

Spinning Manager and Engineer

Deputy Spinning Manager Assistant Spinning Manager

Senior Assistant

Junior Technical Assistant

PRODUCTION PROCESS

The production process begins with the mixing process

and ends with the dispatch process.

Mixing process

Blow room

Carding

Drawing

Simplex

Ring frame

Cone winding

Packing

Dispatch
OPENER PROCESS

The opener process is the first process carried on in the

production of the cone yarn. During this process Viscose Staple Fibre
(VSF) is put into an opening machine, in order to start the production.
Before this, anti-static oil is sprayed on viscose in order to avoid the
effect of static electricity from polyester and viscose. 0.18% of the total
weight of the mixture of polyester and viscose is the amount of
antistatic oil required. This oil is mixed with water in the ratio 1:11 and
is sprayed on the fibre and kept for a day before it is mixed and is
passed to the next department.

MIXING PROCESS

The second step in the production process is called mixing. In this

process Polyester Staple Fibre (PSF) is mixed with VSF in a pre-
determined proportion according to the requirements of yarn to be
manufactured in that particulars count. There are three varieties of
mixing in this mill. They are as follows:

 60s PV in 65:35 Blend with yellow tinting.

 45s PV in 65:35 Blend
 50s PSF HT (100%) without tinting.

In order to identify the count and mixing proportion, Polyester

Staple Fibre is given a tint. Tinting helps in easy identification of
counts. Different food colours, light green, yellow and pink which can
be washed easily is used for tinting and is maintained until it is given to
the weaving merchants. Mixing coolies or mixing attendants as per the
requirements. About five mixing coolies are employed in this
department per day and each of them has a workload of 850-kilo/ day.

BLOW ROOM

The loose mix collected from mixing department is charged to

the blow room where they are toppled manually in order to get a
homogeneous blend of various ingredients of the mix, polyester and
viscose. This toppled mix is then passed through the condenser in to
the tanker and through the pipes it is fed to the second blow room
machineries.

There are three structures in the blow room department and there
are two lines of blow room machineries. One is a double structure and
the other is a single structure. The objective of this process is to open
out thick masses of the new materials of finer pieces and to give a
thorough blending of polyester and viscose. Certain amount of
impurities of foreign matter and metal particles, if any has to be
extracted. The raw materials are converted into a sheet form and
wound on a rod. This is called a Lap, the length of the lap and weight
of each lap is determined. The length of lap is 37 yards and standard
weight is 13.5 Kg. A tolerance of plus or minus 300 gram is permitted.
The duration for forming one lap is six- minutes approximately.

CARDING PROCESS

Carding is the heart of spinning process. The lap collected from

the blow room is fed to the carding machines of the carding
department. In these machines sheet form of laps are converted into
sliver form. Each lap is drafted 90 to 100 times and parallelization of
fibre takes place.

Here short fibres, if any are extracted and the fibres are
straightened and parallelized into uniform size to eliminate unevenness
in the yarn thickness and to ensure uniform weight. Cards are collected
to each count, according to the spin plan and the sliver is collected
from the carding machines count wise. Each sliver has a length of a
3000 metres and the time for producing 1 can of sliver is 1:00 hours.
There are about 50 carding machines running in this mill. Conventional
cards have an average life of 50 years.

DRAWING PROCESS

In the drawing process card sliver produced in the carding

department is passed on to this department. Here homogeneous
blending takes place.

The drawing process is of two types

1. Breaker head
2. Finisher head

Breaker drawing

In this process 8 cans of silver is fed to one delivery of drawing

machines and each of these 8 silvers are converted into a single silver
by blending and drafting and is collected in 1 can, 8 doubling is taking
place to form a single silver .

Each drawing machine can deliver 16 cans. In total, with 8 cans

placed each side and collected in two cans. A maximum of 3000 yards
can be collected in a single can after doubling. The product breaker
head is breaker-drawing silver.

Finisher drawing

Here 8 cans collected from the breaker head of drawing

machines is again processed, in another head of drawing machines.
After this processing, about 4000 yards are collected in a can. The
silver collected from finisher drawing head is called finisher drawing
silver. This is the end product drawing department is 16 deliveries. A
drawing tender has to look after 6 deliveries.

SIMPLEX(SPEED FRAME)

In this department the finisher drawing sliver produced in the

drawing department is fed to the simplex machine (120 cans LF 1400
speed frames).

The sliver is passed through the drafting zone 12 to 13 times. A

certain amount of twist is imparted on the body of drafted material,
which is called Rove. This Rove is wound on plastic bobbins having a
package weight 7500 gm to 1 Kg. speed frame(Simplex) department
has 8 simplex machines having 12020 spindles.

SPINNING(RING FRAME)

In the spinning department bobbins that are brought from the

simplex department are reeled on the ring frame reel and Rove is
drawn through the drafting zone. The main object of spinning drafting ,
twisting and winding. Rove is drafted to a thinner form of yarn.

It is drafted to 20 to 27 times according to the count to be spun.

Different counts can have different twist, which binds the fiber with
one another. This is called TPI (Twist per Inch). A yarn is wound on
plastic tubes that are called ‘Cops’. Average yarn content on a cop is
about 70 grams. These cop’s are taken into the next department that is
cone waiting.

CONE WINDING

In this department yarn on cops is converted into cone form. In

the cone department all types of defects in yarn is rectified and also
yarn on cone will be defect free. According to the requirement of the
market bigger cone of yarn are packed weighing 1.25 Kg each. A
winder has to look after 15-30 runs according to count of the yarn. The
full built cone of 1.25 Kg is removed and collected by the winder and
then it is stacked in the bins count wise in the packing department. The
cone winding machinery has 120 spindles that are winding 120 cones
at a time and it takes about 2.30 hours. This department has 8 cone
winding machines and thereby each machine requires 4 persons.

CONE PACKING

In this department the final product of yarn on cones are packed

in polythene bags. One such bag contains 40 cones and the Net Weight
of 1 bag is 50 Kg. They put necessary details like count, gross weight,
month and year of packing, bag number in lot numbers. Then these
bags are ready for dispatch to the market or depots. Altogether, there
are 6 workers in this department.
 TABLE- 1

Total production for the last five years

Year Quantity
2005 – 2006 1357542 Kg.
2006 – 2007 1412053 Kg.
2007 – 2008 1263804 Kg
2008 – 2009 969000 Kg.
2009 – 2010 1221854 Kg.

CHART -1

Production

1600000

1400000

1200000

1000000

800000

600000

400000

200000

0
2005 - 2006 2006 - 2007 2007 - 2008 2008 - 2009 2009 - 2010
RAW MATERIALS

Raw materials used for the production of yarn in Cannanore

Spinning and Weaving Mills are

 Polyester Staple Fibre (PSF)

 Viscose Staple Fibre (VSF)

Polyester Staple Fibre is one of the raw materials used in production

of cone yarns. Polyester is a synthetic fibre and also a petroleum
product. It is a coal tar derivative. The physical property of PSF is 1.2
D* x38mm.

Viscose Staple Fibre is a natural polymer made from wood pulp. It

is a regenerated cellulosic fibre, which is similar to natural cotton fibre
in respect of its property. The physical property of VSF is 1.5 D*
x44mm. VSF is the other raw material used in this identity for the
production in cone yarns.

D* - Denies (denotes Fineness of Fibre)

Suppliers of Raw Materials

In India, the production of polyester is a monopoly of two major

companies. Reliance India Limited and Indorama (Indonesian
Company). The main supplier of Polyester Staple Fibre for Cannanore
Spinning and Weaving Mill is Indorama. PSF is supplied in the unit of
bales. The weight of one bale is about 400 kg. approx. Landed cost of
one bale is Rs. 75.51 per kg. currently (including freight and excise
duty of 16% and education cess of 2%). Hence, the cost of one bale of
polyester is Rs. 28316.25/-.

Grasim Industries Ltd. is the only supplier of Viscose in India.

Viscose Staple Fibre is supplied in the unit of bale and one bale is
about 384 kg. approx. Landed cost of one bale is Rs. 92.59 per kg.
currently (including freight and excise duty of 16% and education cess
of 2%). Hence, the cost of one bale of Viscose is Rs. 35554.56/-.

Raw Material Procurement Process in Cannanore Spinning and

Weaving Mills

The procurement process begins with preparation of a spin plan.

A spin plan is a budget that shows the anticipated profitability in
producing different blends. It shows the cost incurred allocating a
certain number of machines for producing each count of yarn. A selling
price is fixed taking into consideration the weekly market trend. The
difference in selling price and cost provides the expected profitability.

The NTC form Coimbatore makes centralized purchases of raw

materials. It is purchased on a monthly basis. Each of the mills will
estimate their requirement according to the spin plan and intimate it to
the Head Office. The Head Office of NTC will collect the requirement
of all the regional subsidiaries and place it before the Price Negotiating
Committee in a meeting held every month by NTC in Coimbatore.

The price and the terms of payment are then fixed in the meeting
and the minutes of the meeting is sent to all the mills. The price is fixed
for 1 kg. This is inclusive of excise duty and educational cess.

In case of PSF, terms of payment include the following:

1. A cash discount of 0.50 Ps 1 kg. is allowed when payment is

made in advance.
2. A quantity discount is allowed for lifting the quantity fixed at the
meeting.
3. Interest at the 11% per annum on overdue will be charged by the
suppliers.
Since, Grasim Industries are the only suppliers of Viscose, NTC
procures it from them. In case of Viscose, blend incentives are given
depending on the contents used in the production. Depending upon the
range of Viscose contents, that is, 35-45%, 45-65%, 65% and above,
the incentives will differ. A monthly production report will be sent to
the suppliers and according to the count demanded, incentives will be
provided. The raw materials are transported by lorries for whom the
payment is made by the suppliers.
 Finance Department
All the financial revenues and expenditure of the mill come
under the control of NTC. The main sources of revenue for the mill is
the sale of yarn and the main expenditure incurred are for procurement
of raw materials payment of wages and salaries and payment of
electricity charges. In CS & WM, Accounts Manager is the head of
financial department. He is in charge of all the matters related to
finance in CS & WM. There are three types of auditing in CS&WM.
They are: Internal auditing, Statutory auditing and Government
auditing. The auditing process is fully computerized in CS&WM.

HIERARCHY

Accounts Manager

Deputy Manager
Accounts

Senior Assistant

Junior Assistant
General Information

Bankers: State Bank of India, State Bank of Travancore

Auditors: M/S Jacob & George (Chartered Accountants)

Significant Accounting Policies

1. Fixed assets and depreciation

i. In the case of fixed assets acquired as a result of nationalization,
the life of the assets for depreciation purpose has considered as if
they were new. These assets have been taken at the value as then
approved by the Board of Directors of the corporation. The
assets acquired subsequently are stated at cost.
ii. Depreciation on fixed assets is provided on the straight line
method as per section 205 (2) (b) of the Companies Act, 1956.
iii. Depreciation has been provided for in accordance with circular
number of 14 (9 h). File No. 1/12/92-CL-U dated 20/12/1993 of
the Government of India, Ministry of Law, Justice and Company
Affairs, Department of the Company Affairs, on the original cost
of all the assets including the existing assets including the
existing assets at the rates prescribed in the schedule XIV of the
Companies Act, 1956, retaining the residual at 5 %.
iv. For the fixed assets required after 01.04.1974 and whose actual
cost does not exceed at Rs. 5000/-. Depreciation has been
provided 20%.
v. Depreciation on the amount capitalized subsequently on account
of foreign exchange fluctuation is provided prospectively over
the residual useful life of the asset.
vi. Gains or losses on disposal of fixed assets are recognized in the
profit and loss account.
 2. Inventories

Valuation of inventories is as follows:

a. Stores, spares, dyes, chemicals and coal are at weighted average

cost in respect of inventory (consumable stores/spares) the
provision is made as follows:
Value of items held in and not moved for more than 5 years -
50%
Value of items held in stocks and not moved for more than 3
years - 25%
Value of items held in stocks and not moved for up to 3 years -
Nil.
b. Raw materials at weighted average cost or net realizable value
whichever is lower.
c. Finished goods packed cloth and yarn at cost or net realizable
value after making provisions for obsolescence, whichever is
lower.
d. Waste at net realizable value.
e. Materials in process:- Spinning and weaving in process loose
yarn, cloth-in-process at lower cost or net realizable value.
f. The unfinished job conversion contracts for yarn and cloth are
recognized as work in process valued at contracted price less
expenses still to be incurred by making ready for delivery.

3. Investment
a. Quoted value at lower cost or market value
b. Unquoted value at cost.
4. Debt or receivable
i. Debt or receivables from private parties which are doubted of
recovery or adjustment and outstanding for more than three
years
ii. Debts or receivables from the sister concern into subsidiaries.
Employees of the mill/ Government department/ other PSUs.

5. Prior period expenses and income

Expenses and income of prior years less than Rs. 10000/- in each
case has been charged or accounted in the current year itself.

6. Repairs and maintenance

Store consumptions, salaries and wages incurred on
maintenance are charged to primary held of accounts.

7. Carrying charge

Carrying charges on cotton purchase has been accounted under

administrative expense.

8. Gratuity
The gratuity liability in respect of existing employees has been
calculated on actual valuation, based on February month
earnings.

9. Insurance claims
Insurance claims arising out of fire accident, machinery break
down, transit loss and other miscellaneous losses will be
 accounted only when the claim is admitted by the insurance
and the claim voucher discharged by the company.
10.Foreign currency liability
The foreign currency liability in respect of import of machinery,
under deferred payment guarantee arrangement through holding
company, is revalued at the prevailing market rates as on the
Balance Sheet.

The adjustments for the differences, if any in respect of:

a. Principal amount is adjusted to the cost of machinery.

b. Interest accrued up to the date of balance sheet is dealt within the
profit and loss account.
c. Unaccrued future interest is treated as current asset.

11.Foreign currency transaction

The transactions in foreign exchange are accounted at
exchange rate prevailing on the date of transaction. Any
exchange gains or losses arising out of the subsequence
fluctuation are accounted for in profit and loss account except
loss relating to acquisition of assets.

12.Leave with wages or salary provision

Provision for leave with wages or salary is made for the
number of days of the credit of the employee on date of
balance sheet based on February month earnings.

13. Expenditure on voluntary retirement scheme

Expenditure incurred for implementation of voluntary
retirement scheme is charged to profit and loss account in the
year in which the employees relieved and the same is treated as
an extra ordinary item.
 SALES AND MARKETING
DEPARTMENT

TABLE-2

Total sales in the last five years

Year Sales
2005 - 2006 Rs. 1582600
2006 - 2007 Rs. 1276570
2007 – 2008 Rs. 1061400
2008 - 2009 Rs. 122951370
2009 - 2010 Rs. 156397972

CHART- 2

Sales
160000000 156397972

140000000
122951370
120000000

100000000

80000000
Sales
60000000

40000000

20000000
1582600 1276570 1061400
0
2006 2007 2008 2009 2010
 The final product of Cannanore Spinning and Weaving Mill is
yarn. The market for yarn is a highly competitive one and therefore the
prices keep fluctuating, which in turn affects the quantity demanded.
The main consumers of yarn are the weaving merchants and looms.
Yarn is their raw material with they produce fabrics. Most of the
fabrics thus produced is exported to different countries and also used
for domestic purpose within the country. Hence, it is absolutely a must
that the yarn is of very good quality. Otherwise they will be
immediately rejected and returned to the mill itself.

In case of Cannanore Spinning and Weaving Mill, the

manufactures have direct contact with the depot keepers. Depot
keepers are traders who purchase the yarn from various mills and sell it
to different consumers. There are various depot keepers who purchase
yarn from NTC mills and some of the main ones are located in
Maharashtra (Bhiwandhi), Gujarat (Surat, Ahmadabad), Delhi etc.

The Cannanore Spinning and Weaving Mills sell most of its yarn
to the depot keeper of Bhiwandhi (Maharashtra). Various counts of
yarn will be produced according to the quantity demanded by the
deport keepers. They inform the mill about the changing demand
conditions.

Cannanore Spinning and Weaving Mills does not sell its

products in Kerala, but sold to Bombay and Ahmadabad. Every week
meeting is held to fix the yarn price. There are four depots, three in
Bombay and one in Ahmadabad. The depots in Bombay are Htel
Enterprises, Shah Enterprises and Sangeetha traders. The stock is sent
on 1st of every month to each depots. 50 paise discount is allowed for
each kg. of stock sold before 5th. Out of the cash received from depots,
60% goes to Sub Office, Bangalore and 40% comes to Cannanore
Spinning and Weaving Mills.

Fixing of rates for the yarn

The price of yarn produced in various NTC mills located all over
India is fixed by yarn pricing committee. For the regional subsidiaries
(APKK & M) and (TN), the committee holds its meeting in
Coimbatore (TN). The price fixed by the committee is sent to the
various mills along with minutes of the meeting. According to the price
fixed, the yarn will be allocated to the depot keepers along with the
rates.

Each bag contains about 40 cone yarn, weight 1.25 kg. each.
Gross weight of a pack is 54.1 kg. and the net weight is 50 kg. The
packed sacks of yarn are loaded into lorries. Each lorry contains about
180 to 250 sacks.

The lorries are hired on contract basis for which quotations are
called for. The transport company, which quotes the lowest price, is
selected. These lorries transport the yarn to godowns owned by NTC.
All documents will be sent to the godown. They in turn inform the
depot keepers about the arrival of the stock. The depot keepers can take
the yarn after making the payment for it. If they make the payment
within two days they can avail a discount and send the remaining
amount to the mill. The depot keepers have to produce the proof of
delivery to the godown keepers of the NTC.

The godowns of NTC serve a dual purpose:

 It helps in centralized control of sales.

  It provides the buyer with storage facility.

The depot keepers will take the yarn from these godowns only in
small quantities by sending slips. However, payment will be made for
the whole lot even though the sale is made in small quantities. Sales
report and accounts report will be consolidated by the depot keepers
and send to the respective mills. The sale of yarn is made on cash basis
only and only after actual sales is made; it will be recorded in the
books of accounts of the mill. No discounts or concession of any type
can be provided to the consumers without the permission of NTC.
Depot keepers receive 1.5% commission of the ex-mill value on the
sales made of the NTC products. They represent NTC product in the
yarn market and are also dealers of yarn for various other mills.

List of depot keepers of Cannanore Spinning and Weaving Mills

1. Messers Htel Enterprises

2. Messers Shah Enterprises
3. Chopra Textile (Ahmadabad)
 Stores Department
In Cannanore Spinning and Weaving Mills, the stores
department is a separate building built for preserving material, spares
and finished goods. It is functioning under the control of Spinning
Manager (SM). The department’s main task is to store spare and
stationary items needed by the undertaking and issue it at the time of
need.

One of the main functions of the stores department is to purchase

the spares and stationary as per the requirement of the undertaking. For
this the stores department must get the purchase indent which is a
journal requisition letter sent by the required department with the sign
of the factory manager to the store keeper.

If the required spares are of low cost, the spares are purchased
from the local market and then it is passed to the respective
department. In case of high cost of spares, purchase committee that
consist of Chairman, General Manager, Factory Manager, Accounts
Manager, Engineer and stock keeper will take the decision regarding
the purchase. The high value spares are purchased by inviting
quotations and quotations from at least three suppliers is must.

The following are the procedures followed in the selection of

quotations:

1. Inviting the quotations

2. Receipt of quotations
3. Opening of quotation
4. Tabulation
5. Verification
 6. Placing order

In the stores department racks and cupboards are being maintained

for storing of spares. In order to control and record different
transactions of material, Bin Card is used and it is tagged with each
stock.

Bin Card is a quantitative record showing receipt, issue and closing

balance of particular items of stores. It is possible to know the stock
position as each and every transaction of materials is entered into Bin
Card with date.

In Cannanore Spinning and Weaving Mills there is a formal

procedure for the issue of materials. Every department has to follow
this procedure in procuring the materials. Firstly, the department
requiring materials has to prepare a requisition slip in which the
material needed, quantity etc. are written. Then this requisition has to
be signed by the Spinning Manager and then it is passed to the stores
department. Through this requisition slip the store keeper issue the
requested list of materials to the department and these issues are noted
in issue register. In order to exercise an efficient control over the stores
department, the store keeper must prepare and maintain different
registers.

Following are the registers maintained in the stores department:

1. Purchase register
2. Issue register
3. Purchase order register
4. Stock register
5. Quotation register
6. L/R register
Inventory Management

The need for inventory management with uniform policy

throughout the nine subsidiary corporations is the prime and pressing
need of the hour, as most of the units is yet to turn as viable units and
very few units are operating with very meager profits.

Inventory management helps to bring uniformity in the policies,

procedures and methods to be adopted for the material management
function in all the mills under the control of NTC.

Objectives of inventory management in Cannanore Spinning and

Weaving Mills:

a. To provide timely assistance for the mills

b. To ensure uninterrupted supply of materials without stock or
excess storage
c. To achieve standardization
d. To reduce heavy investment in inventory
e. To assume mills the right quality at right price at the right time.

In Cannanore Spinning and Weaving Mills inventory is maintained in

the following ways:

i. Stores, spares, dyes, chemicals and coal are at weighted average

cost.
ii. Raw materials at weighted average cost or net realizable value
whichever is lower.
iii. Finished goods packed cloth and yarn at cost or net realizable
value whichever is lower, yarn stock in depot at landed cost or
net realizable value whichever is lower.
iv. Stock with retail shop at landed cost/ latest landed cost or
realizable value after making provision for obsolescence,
whichever is lower.
v. Waste at net realizable value.
vi. Materials in process:- Spinning and weaving in process loose
yarn, cloth-in-process at lower cost or net realizable value.
vii. The unfinished job conversion contracts for yarn and cloth are
recognized as work in process valued at contracted price less
expenses still to be incurred by making ready for delivery.
 HUMAN RESOURCE
DEPARTMENT
The employees of an organization are precious and the backbone
that plays a stupendous role in its development and productive
activities. Its employees significantly influence the prosperity of the
organization. Liberalization and globalization has created challenging
opportunities to make its human resource competent enough to take a
challenge. All these calls for the existence of HRM department in the
organization.

Human Resource Management is an art and science of managing

people who are engaged in productive occupations. Human Resource
Management is the organizational function that deals with issues
related to employees such as compensation, hiring, performance
management, organizational development, safety, wellness, benefits,
employee motivation, communication, administration and training.

Human Resource Management is the function within an

organization that focuses on recruitment, management and provides
direction for the people who work in the organization. Human resource
management can also be performed by line managers.

Human resource management is, no doubt, an outgrowth of the

older process and approach. But it is much more than its parent
disciplines –personnel management and behavioral science. Its
approach is more comprehensive from beginning to end. Its emphasis
is not only on production and productivity but also on quality of life .It
seeks to achieve the fullest development of human resource and fullest
possible socio-economic development.
 Maximum individual development, developing working
relationship and effective utilization of human resources are the
primary goals of human resource management.

A healthy climate, characterized by the values of openness,

enthusiasm, trust, mutuality and collaboration is essential for
developing human resources.

Definition of Human Resource Management

According to Dale Yoder “the management of human resource is

viewed as a system in which participants seek to attain both individual
and group goals.”

Process of Human Resource Management

1. Acquisition function:
Acquisition process is concerned with securing and employing
the people possessing the required kind and level of human resources
necessary to achieve the organizational objectives. The acquisition
function begins with planning. It also covers the function such as job
analysis, human resources planning, recruitment, selection, placement,
induction and internal mobility.

2. Development function:
It is the process of improving, moulding and changing the skills,
knowledge, creative ability, aptitude and value. The development
function can be viewed along three dimensions.
 Employee training- it is the process of imparting to the
employees the technical and operating skills and knowledge. It also
includes changing the attitudes among workers.
 Management development- it is primarily concerned with
knowledge acquisition and the enhancement of an executive’s
conceptual abilities.
 Career development- it is a continual effort to match long-term
individual and organizational needs. When human resources have been
developed effectively, one can expect to have competent employee
with up-to-date skills and knowledge.

3. Motivation function:
The motivation function begins with the recognition that
individuals are unique and that motivation techniques must reflect the
needs of each individual.

4. Maintenance Function:
The maintenance function is concerned with providing those
working conditions that employees believe are necessary in order to
maintain their commitment to the organization.

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

In order to achieve organizational objectives integration of

employers and employees interest is necessary. In this light it can be
summarized as follows:
i. To improve the services rendered by the enterprise to society
through building better employee morale, which leads to more
efficient individual and group performance. Thus HRM seeks to
 manage change to the mutual advantage of individuals, groups,
the organization and the society.
ii. To establish in the mind of those associated with the enterprise-
employees, shareholders, creditors, customers and the public at
large- the fact that the enterprise is rendering the best service of
which it is capable and distributing the benefits derived from
their fairly and contributing to the success of the enterprise.
iii. To create and utilize an able and motivated workforce to
accomplish the basic organizational goals.
iv. To organize and satisfy individual and group needs by providing
adequate and equitable wages, incentives, employee benefits,
social security, challenging work prestige, recognition, security
status etc. Thus an organization can identify and satisfy
individual and group goals by offering appropriate monetary and
non-monetary incentives.
v. To employ the skills and knowledge of employees efficiently and
effectively i.e., to utilize human resources effectively in the
achievement of organizational goals.
vi. To strengthen and appreciate the human assets continuously by
providing training and development programmes.
vii. To maintain high employee morale and sound human relations by
providing the various conditions and facilities.
viii. To enhance job satisfaction and self-actualization of employees
by encouraging and assisting every employee to realize his full
potential.
ix. To provide facilities and conditions of work, and create
favourable atmosphere for maintaining stability of employment.
 HUMAN RESOURCE DEPARTMENT OF CANNANORE
SPINNING AND WEAVING MILLS

Human Resource department plays a very important function in

management concept. It is said to be a method of developing the
potentialities of employees so that they will get maximum satisfaction
out of their work and as a result give their best efforts to the
organization.

HIERARCHY

Labour Welfare Officer

Time Keeping

Senior Assistant

Junior Assistant
 In Cannanore Spinning and Weaving Mills, the personnel
department has the task of keeping the organization together as an
outgoing entity in the face of external and internal stresses and is of
considerable importance. Here employee becoming surplus will not be
retrenched but will be redeployed suitably filling up the existing
vacancies. Whenever vacancies arise in future, the surplus staff will be
posted as per seniority. Necessary alternations in the duties and
responsibilities of remaining staff members shall be made for the
effective and smooth functioning of the mills.

The resultant surplus staff fills temporary vacancies and carries

out alternative duties and responsibilities as per direction of the
management until they are allocated to permanent position.

It is agreed that the staff members in all sections shall work as a

team and every one shall attend to other members work also as and
when required.

Functions of Human Resource Department in Cannanore

Spinning and Weaving Mills

In Cannanore Spinning and Weaving Mills, the Personnel

Manager is the head of personnel department. He is in charge of
administration disciplines and other administrative functions.

The following are the main areas of administration:

1. Recruitment, training and promotion

Currently no recruitment is taking place in Cannanore Spinning
and Weaving Mills. Time to time training program is conducted.
Apprentice training is held as per the Apprentice Act. Clerical
 Staffs is decided by the NTC. Promotion for the workers or
staffs is based on seniority level over merit.

2. Provident Fund contribution

All the employees are covered under PF and ESI Act; the
employees contribute 10% of their wages to Employees
Provident Fund or salary with 10% contribution by the
employer. The employees are eligible for Employees Pension
services with a ceiling of Rs. 6500 per month.
The pension is worked out as per the following formula:-
1/70 x pensionable salary x pensionable service.

3. ESI contribution
4.75% of employer’s contribution
1.75% of employee contribution
Medical benefit, accidental benefit, sick benefit leave are
provided if necessary. Funeral benefits are also provided if any
one dies during the period of his service.
4. Gratuity
Gratuity is calculated using the formula:-
Per month salary/ 26 days x 15 days
(Monthly salary will be calculated only for 26 days)
The present ceiling limit of total amount of gratuity payable is
10 Lakhs.
5. Wage administration
There are two types of wage payment systems followed in
Cannanore Spinning and Weaving Mills according to the
production stages. For mixing, blow room and carding wages are
 paid on the basis of piece rate system and for all other
production process time rate system is obtained.
6. Retirement benefit
At the time of retirement all these benefits are provided.
Gratuity
Provident Fund
Pension
Leave with wages if any.
7. Administrative actions
If a worker takes a long leave the management won’t terminate
him suddenly. There is a procedure in Cannanore Spinning and
Weaving Mills before termination. First the absentee is admitted
for counseling. Thereafter, a notice is sent and then warning
notice is sent. Even then he continues to be absent a call notice is
sent, and then the management may suspend him and after
further enquiries of termination is held as per standing orders.
There are two categories of workers in CS & WM and they can
be classified into the following:

Workers

Skilled Unskilled

Doffing
Jobbers Fitters Maistri Spinners
boy

Number of workers
There are about 540 workers and 19 administrative staff working
in the mill. 3 shifts are functioning from 7:00am - 3:30pm,
3:30pm - 12:00am and from 12:00am - 7:00am. Both male and
female workers are employed in all sections of the mill.
Different categories of workers include permanent, temporary
and gate badlies.
 TRAINING
Meaning of Training:

Training is the process of increasing the knowledge and skills for

doing a particular job. It is an organized procedure by which people
learn knowledge and skills for a definite purpose. The purpose of
training is basically to bridge the gap between job requirements and
present competence of an employee. Training is aimed at improving
the behavior and performance of a person.

Training is often described as focusing on the acquisition of

KSAs (Knowledge, Skills and Abilities) needed to perform more
effectively one’s current or future job. Training is job oriented or
occupational, having an immediate utilitarian objective, and the major
burden of training falls upon the employers. Training is essentially
practical consisting of knowledge and skills required to perform
specific tasks. Training is valuable to employees because it will give
them greater job security and an opportunity for advancement.

Definition of Training:

According to Edwin.B. Flippo “Training is the act of

increasing the knowledge and skills of an employee for doing a
particular job”

What does training include?

Training enables the employees to get acquainted with jobs and

also increase their KSA. It makes a newly recruited employee fully
productive in the minimum of time. Even for the old workers, it is
necessary to refresh their job skills and to enable them to keep up with
new methods and techniques as well as new machines and equipments
for doing the work. Training job will never be finished as long as the
organization remains in operation. Training includes the learning of
such techniques as required for the intelligent performance of different
tasks.

TRAINING EFFECTIVENESS
The training effectiveness is concerned with studying about the
current practices used by the training department for training
employees of this organization.

According to one of the definitions “Training Effectiveness”

means ‘the extent to which the training activity fulfills its intended
purpose or function’. However, there has been lot of definitions given
by various experts in the field of Human Resource Management. One
of the noted definition is by Descy and Westphalen(1998), who defined
training effectiveness as ‘training that meets its objectives as defined
by its funding body’. This is a notable definition since it is undoubtedly
the funding body that ultimately decides whether or not training will be
made available. Whilst this is a useful heuristic, there are two points to
bear in mind. First, it is not always the case that the funders’ precise
objectives are transparent, although their general aims may be. Second,
whilst the funders may have objectives, it is only by relating the extent
to which these are perceived to have been met - by the various
stakeholders (e.g. individuals, enterprises) – that one can really
understand the extent to which the training has been effective. There
may also be unintended consequences of training that aid an
individual’s employability – for example, improving ‘soft skills’ such
as an individual’s self-esteem, motivation or ability to work in a team.

Evaluation of the current training mechanism is done to

understand the following:

o Provide feedback on whether the existing training and

development activity is effective in achieving its aims.
o The extent to which the organization has benefited from
employee development and progress.
o To find out if the learning is being applied in the work
place.
o It helps you to understand the attitude of staff towards the
training programmes.
o It helps you to track the development of staff knowledge
and skills.
o Identifying training gaps and future training needs.

TYPES OF TRAINING:

Training programs may be of the following types.

i. Orientation Training
Induction or orientation training seeks to adjust newly
appointed employees to the work environment. Induction
training creates self confidence in the minds of employees.

ii. Job Training

 It refers to the training provided with a view to increase
the knowledge and skills of an employee for increasing
performance on the job.
iii. Safety Training
Training provided to minimize accidents and damage to
machinery is known as safety training.

iv. Promotional Training

It involves training of existing employees to enable them
to perform high level jobs.

v. Refresher Training
When existing techniques become obsolete due to the
development of better techniques, employees have to be
trained in the use of new methods and techniques.
Refresher training is designed to revive and refresh
knowledge.

NEED OF TRAINING
 Job requirement - New and inexperienced employees
require detailed instructions for effective performance on the job.
 Technological change - Technology is changing very
fast. Now automation and mechanization have been increasingly
applied in offices and service sector. Increasing the use of fast
changing techniques require training in new technology.
 Organizational viability - In order to survive and grow,
an organization must continually adopt itself to the changing
environment. An organization can build up a second line of
 command through training in order to meet its future needs of
human resource.
 Internal mobility - Training becomes necessary when an
employee moves from one job to another due to transfer.
 Remedial training - This training is arranged to
overcome the short comings in the behaviour and performance of
old employees.

METHODS OF TRAINING

There are many methods of training. The management should

select an appropriate method which is suited to the organizational
needs. The training methods are:

On-the-Job Training

The most common method used by the industry to train individuals is

on-the- job training. Virtually every employee from clerk to General
Manager gets some on-the –job training. Under this method, the
immediate superior who knows exactly what the trainee should learn to
do, give training at his workplace. Following are the on-the-job
training methods:

i. Coaching
Under this method, the supervisor guides or coaches his
subordinate to acquire knowledge and skill.
ii. Job or Position Rotation
The trainee is transferred systematically from one job to
another’ so he can get the experience of different jobs.
iii. Special assignment
 This is used to provide the employees with first hand
experience in working on the actual problem.

Off-The-Job Training

This type of training is not a part of everyday job activities.

Classroom or off-the-job instructions are useful, when the concept,
attitudes, theories and problem solving abilities are to be total. The
following are the off-the-job training methods.

i. Lecture Methods
It is a verbal presentation by an instructor to a large audience. It
is an excellent and economic technique for group training
ii. Conference Method
In this method, the participating individuals ‘confer’ to discuss
points of common interest for each other. It is an effective
training device for person in the possession of both conference
member and conference leader.
iii. Case Study Method
Under this method, the trainee may be given a problem to
discuss, which is more or less related to the principles already
taught. In this method, the trainee is given an opportunity to
apply his knowledge to the solution of a realistic problem.
iv. Sensitivity Training
A group consisting of 10 to 15 persons is selected. They can
share their experiences. This type of training is aimed at creating
and improving sensitivity to the feelings of the employee.
v. Role Playing
 Here trainers are required to play the role of supervisor. A
problem or work situation is given, in which they are expected to
take up that role.
vi. Simulation
It is an attempt to create a realistic decision making environment
for the future.

Steps in the Training Programme

Training is a costly and time-consuming process. This

training procedure discussed below is essentially an adoption of the job
instruction training course. The following steps are usually considered
as necessary.

i. Discovering or identifying training needs

A training programme should be established only when it is felt
that it would assist in the solution of specific problems.
Identification of training needs must contain 3 types of analysis.
a) Organizational analysis
b) Operational analysis
c) Man analysis
Organizational analysis
It involves the study of the entire organization in terms of its
objectives, its resources, resource allocation and its environment.
Operational analysis
It is a systematic and detail analysis of jobs. It is mainly to assess the
job contents, skills and aptitude required to perform jobs, the
knowledge and work behavior.
Man analysis
The persons to be trained, changes required in the knowledge, skills
and aptitudes of the employees are to be determined.
ii. Preparing the instructor
The instructor is the key figure in the entire programme.
He must know both the job to be taught and how to teach
it. The training programmes then follow a general
sequence aimed at supplying the trainee with the
opportunity to develop his skills and abilities.
iii. Preparing the trainee
In putting the learner at ease, in stating the importance and
ingredients of the job and its relationship to workflow, in
explaining why he is being taught, in creating and
encouraging questions finding out what the learner already
knows about his job or other jobs.
iv. Presenting the operation
It is the most important step in the training programme.
The training should clearly tell, show, illustrate and
question in order to put across the new knowledge and
operations.
v. Try out the trainee’s performance
Under this, the trainee is asked to go through the jobs
several times slowly, explaining each step.
vi. Follow up
The final step in most training procedures is the follow up.
It is undertaken with a view to testing the effectiveness of
training efforts.
Aims and Objectives

a. Primary objectives

 To do a research on the effectiveness of training methods.

b. Secondary objectives

 To find out how far employees are satisfied in their

designated job and how the present environment help them
to increase their productivity.
 To understand what type of needs influence the employees
most and to find out ways to utilize employee needs to
achieve organizational objective.
 To do a general search on valence and expectations of
employees and find out means to increase it.
RESEARCH METHODOLOGY

RESEARCH:

Research is a process in which the researcher wishes to find out

the end result for a given problem and thus the solution helps in
future course of action. The research has been defined as “A careful
investigation or enquiry especially through search for new fact in any
branch of knowledge”.

RESEARCH METHODOLOGY:

The procedure using, which researchers go about their work of

describing, explaining and predicting phenomena, is called
Methodology. Methods compromise the procedures used for
generating, collecting, and evaluating data. Methods are the ways of
obtaining information useful for assessing explanation.
 RESEARCH DESIGN

“A Research Design is purely and simply the fame work or plan

for the study that guides the collection of the data”.

Types of Research Design:

 Exploratory Research Design

 Descriptive Research Design
 Casual or Experimental Research Design

In this study, the researcher has adopted Descriptive Research Design

Descriptive Research Design

A Descriptive Research Design is the one that simply describes

something such as demographic characteristics of certain people who
use something.

The descriptive study we typically concerned with determining

frequently with which something occurs or how two variables vary
together. This study is typically guided by an initial hypothesis. A
descriptive study requires a clear specification of who, what, when,
where, why and how aspects of the research.
 SAMPLIND DESIGN

Convenience Sampling:

 The sampling adopted in this study was convenience sampling.

As the name implies, the sample is selected because they are
convenient to the researcher.

 A convenience sample is used when you simply stop anybody in

the street who is prepared to stop, or when you wander round
a business, a shop, a restaurant, a theatre or whatever, asking
people you meet whether they will answer your questions.

Sampling Unit:

 A Survey is conducted in S&S Power Switchgear Equipment

Limited at Sedarapet

Sample Size:

The sample size for the survey is 50

 LIMITATIONS OF THE STUDY

 Since time limit is very less an intensive study is not possible.

 The non-availability of certain data within the limited time is also one
of the limitations of the study.
 Some data are confidential so they do not give more details.
 There may be errors due to respondent’s bias.
 WORK EXPERIENCE OF EMPLOYEES

Table.1

Variable Number of Percentage

Respondents
Less than 3 yrs 8 16
3 - 5 yrs 25 50
Above – 5 yrs 17 34
Total 50 100
 Chart. 1

WORK EXPERIENCE OF EMPLOYEES

50

40

30

20

10

0
less than 3 years 3 to 5 years more than 5
years

Inference:
From the above table, it can be seen that one half of the
employees have an experience of 3-5 years in the job. While 34
percent of them have a work experience of above 5 years. Only
16 percent of employees were having experience less than 3
years.
 TYPES OF TRAINING

Table.2

Particulars Number of Percentage

Respondents
On-the-job 41 83
training
Off-the-job 9 17
training
Total 50 100
 Chart. 2

TYPES OF TRAINING

17%

On-the-job training
Off-the-job Training

83%

Inference:
From the above table, it can be seen that a majority of
employees got On-the-job training at the time of joining.
TYPES OF TRAINING UNDER ON-THE-JOB TRAINING

Table. 3

Particulars Number of Percentage

Respondents
Job rotation 8 16
Coaching 42 84
Special 0 0
Assignment
Total 50 100
 TYPES OF TRAINING UNDER ON-THE-JOB
TRAINING

Chart. 3

90

80

70

60

50

40

30

20

10

0
Job Rotation Coaching Special
Assignment

Inference:
From the above table, it can be seen that a majority of the
employees got coaching method of On-the-job training. While
16% of them are trained in rotation method of On-the-job
training.
TYPES OF TRAINING UNDER OFF-THE-JOB
TRAINING

Table.4

Particulars Number of Percentage

Respondents
Lecture 42 84
Method
Conference 8 16
Method
Seminar or 0 0
team
discussion
Total 50 100
 Chart.4

TYPES OF TRAINING UNDER OFF-THE-JOB

TRAINING METHODS
0%

16%

Lecture Method
Conference Method
84%

Inference:

From the above table, it can be seen that 84% of employee get lecture
method of Off-the-job training, 16% get conference method and none
of the employees are trained on seminar or team discussion.
 INTERVAL OF TRAINING PROGRAMMES

Table. 5

Particulars Number of Percentage

Respondents
Once in a month 0 0
Once in 6 months 0 0
Once in a year 50 100
Total 50 100
 Chart.5

INTERVAL OF TRAINING
PROGRAMMES

Once in a year

Percentage
Once in 6 months

Once in a month

0% 20% 40% 60% 80% 100%

Inference:
This table shows that 100% of employees get training once in a
year.
 EFFECTS OF TRAINING

Table. 6

Particulars Number of Percentage

Respondents
Performance 33 66
Improvement
Self confidence 8 16
Personality 0 0
development
Improvement of 9 18
products and
production
Total 50 100
 Chart. 6

Effects of Training

70

60
Performance
Improvement
50
Self Confidence
40
Personality Development
30
Improvement of Products
20 and Production

10

Inference:

From the above table, it can be seen that 66% of the employees
improved their performance through training method. While 16% of
employees creates self confidence through training method and 18%
improved the product and production through training method.
 NUMBER OF TRAINING ATTENDED

Table. 7

Variable Number of Percentage

Respondents
Less than 5 34 68
5-10 16 32
More than 10 0 0
Total 50 100
 Chart. 7

NUMBER OF TRAINING ATTENDED

70

60

50

40

30

20

10

0
Less than 5 5 to 10 More than 10

Inference:
From the above table, it can be seen that 68% of the employees
attended less than 5 training sessions. 32% attended 5-10
training sessions and none attended more than 10 training
sessions.
 TYPES OF TRAINER

Table.8

Particulars Number of Percentage

Respondents
External Expert 0 0
Company Trainer 50 100
Total 50 100
 Chart. 8

TYPES OF TRAINER

External
expert

Company
Trainer

100%

Inference:

It is clear from the table that only company trainers are engaged in
giving training to employees.
 TYPES OF TRAINING

Table.9

Particulars Number of Percentage

Respondents
Group Training 37 74
Individual 13 26
Training
Total 50 100
 Chart. 9

TYPES OF TRAINING

26%

Group
Training

74%

Inference:

From the above table, it can be seen that 74% of the employees
preferred group training while only 26% preferred individual training.
IMPACT OF TRAINING IN CAREER DEVELOPMENT

Table.10

Variable Number of Percentage

Respondents
Agree 50 100
Disagree 0 0
Total 50 100
 Chart. 10

IMPACT OF TRAINING IN CAREER DEVELOPMENT

Agree

Disagree

0 20 40 60 80 100

Inference:

From the above table, it can be seen that whole of the

employees agreed that training is helpful to improve the employee
career.
 RATING OF PRESENT TRAINING PROGRAMMES

Table.11

Particulars Number of Percentage

Respondents
Excellent 7 14
Very Good 10 20
Good 30 60
Poor 3 6
Total 50 100
 Chart. 11

RATING OF PRESENT TRAINING

PROGRAMMES

6%
14%

Good

20% Very Good

60%
Excellent
Poor

Inference:

From the above table, it can be seen that 60% have the response as
good, 20% stated it is very good, 14% rated that training programme is
excellent and only 6% rated training programme as poor.
 FINDINGS OF THE STUDY

 The company provides training to all workers at the time

of joining.
 Most of the workers preferred the group training system
more than individual training.
 All the workers agreed that training is helpful to improve
the employee’s career.
 There is no highly efficient and effective training system.
 Most of the workers prefer job rotation method of training.
 The company does not prefer to select experienced
candidates as workers. Previous work experience is not the
important criteria for getting selection.
 84% of the workers were working in the company for
more than 3 years.
 It is found that the company provided coaching training
method to most of the employees under on-the- job training
system. Currently the company mainly provides job rotation
training.
 The company focused on lecture method of training under
‘of f the job training’, especially for safety training.
 Human Resource Department does not provide training
regularly.
 The majority of workers improved their performance
through training system.
 All workers agreed with the fact that training is an
essential part of every organization.

RECOMMENDATIONS
 There should be regular training sessions.
 Training must be focused to enhance the knowledge about
the latest technological change.
 Special attention must be given to provide highly efficient
and effective training.
 Safety training should be given, especially to new
workers.
 Effectiveness of training programmes should be evaluated
periodically.
 The follow ups and reviews on training learning needs to
be undertaken by the training department on a regular basis and
document it.
 CONCLUSION

Training method play an important role in enhancing

productivity and overall performance of workers. It has great influence
in boosting the morale and loyalty of employees. Training is essential
to develop skills and also update knowledge.
CS&WM provide only high quality and high standard products.
The company produces innovative parts like twist and super high twist
synthetic fibres, which are of high element in the current market. So it
has forced a large market in India.
The aim of the study is to find the effectiveness of training
methods, and the merits and demerits of training methods. Employees
are satisfied with the training methods of the company. They require
more training programmes especially for safety and to keep pace with
the latest technological changes.
 QUESTIONNAIRE

1. Personal data

Name:

Age:

Sex: a) Male b) Female

Department:

Nature of work:

Qualification: a) Below SSLC b) SSLC

C) PDC/+2 d) Degree e) PG f) Diploma

Year of service: a) 0-2years b) 2-5years c) Above 5

years

2. Did you get On-the -job training or Off-the-job training at the time
of joining?

a) On-the-job training b) Off-the-job training

3. What type of On-the-job training did you get?

a) Job rotation b) Coaching c) Special

Assignment

4. What type of Off-the-job training did you get?

a) Lecturer method b) Conference

c) Seminar or Group discussion

5. How often do you get training?

a) Once in a month b) Once in 6 months
c) Once in a year

6. Did you get training for any of the following purpose?

a) Performance improvement b) Personality Development

c) Improvement of products and production

7. How many training session did you attend?

a) Less than 5 b) 5 to 10 c) More than 10

8. Whom did you get as trainers?

a) External expert b) Company trainers

9. Rate the present training programme available to you

a) Excellent b) Very good c) Good

d) Poor

10. Which of the following training do you prefer?

a) Group training b) Individual training

11. Do you think training help employees to improve his career?

a) Agree b) Disagree

12. What is your opinion about employee morale and discipline?

a) Very good b) Good c) Average d) Bad

13. Did you get more opportunities for your advancement?

a) Strongly agree b) Strongly disagree

c) Agree d) Disagree

14. Are you able to adjust when an unpleasant circumstance arrives?

a) Yes b) No

15. “Training is an essential part of every organization” how far do you

agree with the statement?
a) Agree b) Neither agree nor disagree c) Disagree

BIBLIOGRAPHY
Data collected directly from workers.

References

H.R.M – T.N.CHHOBRA

H.R.M – C.B.GUPTHA

H.R.M – ABDHUL ASSIZ

Website address

www.textile spinning.com

www.entyce .com

www.textile fibre.com