CHAPTER 1

INTRODUCTION OF THE COMPANY

Cotton is widely all over the country as it is essential to textile. Cotton mill is
a primary national industry of India. As clothes have become more important to man
and the industry have grown to fulfill man’s need. It provides employment to men.
The usage of cotton has due to its merits.

Cotton and blended textiles now occupy top position among the country in
community groups. The Indian cotton mill industry has registered remarkable
progress in planning. It has grown in terms of both quality and quantity. It has taken
repaid strides in respect of number of mills, quantity and variety of cloth produced
and types of raw material used.

As a human being we need the three basic requirements like food, cloth and
shelter. Every body has known the importance of cloth in our life.

In due course of time they come to know that clothes are made up two types of
fibers. They are animal fibers and vegetable fiber.

Maharashtra is top position in the production of cotton, we have well known

that of the Manchester of India is Mumbai for cloth production fibers are supplied to
the weaving mills by spinning mills in which fibers are produced using cotton
purchased from farmers.

In India, the third position of its foreign exchange though the export cloths to
the neighboring and European countries.

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 OBJECTIVES OF THE STUDY

The main objectives of the company are,

1. To carry on the business of manufacturing mercentaizing, bleaching, dyeing,

selling yarn, cotton and stable fiber cloth fabrics made from raw Cotton and
synthetic to carry on the business of the spinning and weaving mill proprietors
in all their branches.

2. To carry all (or) the business of skill weavers cotton, spinner, cloth
manufacture manufactory importers and whole sale and manufacture retail
dealers of the textile fabrics of all kinds miller, dress makers tailors, hatters,
clothier, out fitness, glovers, legal manufactures and further dresses.

3. To be interested in all the business of pressing and spinning mill proprietors

and dye makers.

4. To purchase (or) take on lease land and plant to cultivate cotton (or) fibers
producing plants on the same and to give advances to best (or) other
encourage the production of the said products.

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 SCOPE OF THE STUDY

 Study on the industry will definitely provide an excellent opportunity to

interact with the industry and know about industrial environment

 It will give functional exposure in different industrial sectors.

 It will help in combining the academic knowledge with practical experiences.

 It will help to develop an understanding of an organization’s various

management and technical skills, the communication techniques and the
decision-making processes.

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 OVERVIEW OF THE COMPANY

1.2 HISTORY OF THE COMPANY

SASI ANAND SPINNING (INDIA) PRIVATE LIMITED is one of the best

spinning mills in ERODE. This mill is located at ELLAPPALAYAM, PERUNDURAI
and this village is 22kms from ERODE (DT).

The company was incorporated on 23rd September 2004 under the companies
Act 1956. The register number of the company is U17111TZ1992PTC003669. The
company was incorporated in 1992 and commenced its operation on 15th November
1997.

The company at present has the capacity of 40,000 spindles over the period of
13 years present bankers of the company.

The company got a license capacity 40,000 spindles. At present the company
has engaged in those business of manufacture of cotton yearns and has achieved a best
place in business field and financial result over the last 10 years of the company has
inducted 4 combers, a sliver lab a ribbon lab.

1.3 MISSION OF THE COMPANY

The mission of the company is to deliver high quality products to the

customers as per their requirements on time taking into account cost management
also. Aim of the company is to become the best performer in establishing trade in the
global market, being accountable to all stake holders in the field environment
management, customer’s healthy and safety.

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1.4 COMPANY PROFILE

Name of the company : SASI ANAND SPINNING MILLS (INDIA)

PRIVATE LIMITED
Year of Establishment : 23, September 2004

Managing director : Mr. N. Vijayakumar

Founders : Mr. K. Palanisamy

Address : SASI ANAND SPINNING MILLS (INDIA)

PRIVATE LIMITED, Ellappalyam, Pethampalayam
(road), karumaandisellipalayam (po),
Perundurai-638052
E-mail id : sasianandspgmills@gmail.com

Nature of the business resist : Manufacturing

Products : Cotton

No. Of. Employees : 100

Shifts : 3(8 hrs)

Wages : monthly and weekly

Annual income : 8 crores

Banker : Industrial development bank of India

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1.5 STRUCTURE OF THE ORGANIZATION

ORGANISATION CHART

Board of Directors

Managing Director

Executive Director

General Manager

Accounting Cotton Time Marketing Store Spinning

(Dept.) (Dept.) (Dept.) (Dept.) (Dept.) (Dept.)

Accounts STORE Spinning

Officer keeper Master

Cashier Store Asst. Spinning

Asst. Master

Account

(Asst.) Supervisor

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1.6 BOARD OF MEETINGS

1.6.1 DIRECTORS MEETING:

This company conducted the monthly two meeting by the management.

 Production

 Administration

The board meeting is conducted to every three months.

WEEKLY MEETING:

Head of the department (HOD) conduction the weekly meeting.

ANNUAL GENERAL MEETING:

Every company must in each year (i.e., calendar year) hold in addition to any
other meetings a general meeting as its annual general meetings. The company must
specify in the notice calling the meeting that it is the annual general meeting of the
company.

This company conducting the annual general meeting each year.

EXTRAORDINARY GENERAL MEETINGS:

A statutory meeting and annual general meetings of a company are called

ordinary meeting. Any meeting other than meeting is called extraordinary or
extraordinary general meeting.

1) The board of directors on its own or the requisition of members; or

2) The requisition themselves on the failure of the board to call the meeting.

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 MEETINGS

Members Meeting Directors Meeting

Annual General Extraordinary Board Meeting committee

Meeting Meeting

In all democratic association – Social, political or business-from the smallest

sports club to the largest joint stock company, members get together periodically to
discuss the problems relating to the association and take decisions by common
consent of majority. Such meetings have become an integral part of the modern
democratic set-up.

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1.7 SAFETY AND SECURITY

SAFETY

o Fencing of machinery

o Work on near machinery in motion

o Employment of young person’s on dangerous machines.

o Striking gear and devices for cutting of power.

o Self-acting machines.

o Casing of new machines.

o Prohibition of employment of women and children near cotton

openers.

o Safety mask and safety dress.

o Lifting machines, chains, and ropes and lifting talkies.

o Revolving machinery.

o Pressure plant.

o Precautions against explosive or inflammable dust, gas, etc.

o Precaution in cause of fire.

o Maintenance of building.

SECURITY:

This section also includes in personnel Department. Important functions of

security department are given below:

o To maintain the discipline, among the employees.

o To safe guard the property of the company.

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 CHAPTER 2

FUNCTIONAL AREA IN THE COMPANY

2.1 PURCHASE DEPARTMENT

This department purchases the required amounts and quantity of cotton from
various states like Gujarat, Maharashtra, Punjab and Karnataka. The company also
purchased from local market.

It purchases various varieties of cotton like CRA, RC4, LK, and Sivamani.
This department takes care and about the production indirect by procuring and
supplying required quality of fibers to the mills.

Following are main function of the purchase department.

1) When the mill wants to purchase fibers enquiry consist of required quality,
Equality and cost in made as a first step.

2) Purchase offices will analysis the response for the enquiry. If the statistics
about any one of the party he asks the sample for fibers.

3) After receiving fiber samples it will be send carefully to all departments. Then
the samples will be sent to the MDS approval.

4) Analysis of the report done by the quality department will also sent to the
MD’S perusal.

After getting MD’S approval the party will be called onto make contract.

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2.1.1 CHART OF PURCHASE DEPARTMENT

Purchase

Stores material Raw material

Cotton Stable fibred material plants & lubricants

Purchase machinery purchase

STRUCTURE

Chief Executive

General Manager

Purchase Officer

Cotton Clerk Store Clerk

Asst. Cotton clerk Asst. Store clerk

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2.1.2 PURCHASE SYSTEM

The company purchase cotton only though brokers. The brokers give
samples to the company. After approval they will send cotton. In case of spot
purchase lorry hire will be paid by the mill but in case of fright on road lorry hire,
is paid by the suppliers. After getting cotton, it will be entered in the registers.

In short the following line diagram will clearly show how the raw materials
received.

Purchase

Raw material Store material

Cotton stable fiber materials Plants lubricants purchase

Machinery

The following diagram will expenses the chair of responsibility in purchase

Department.

IMPORTANT BOOKS USED IN PURCHASE DEPARTMENT

1. Lot ledger:

Particular of the lot supplier Name, no of bags, date of purchase are entered in
this book.

2. Cotton Consumption Book:

Quality of the cotton sent to the production unit, quality of cotton receive from
supplier are entered then and there. So this book will give the exact Stock cotton.

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3. Cotton Contract Books:

Details of broker’s name, supplier’s name, and variety of fiber, rate, and
quality are maintained in this book.

2.2 PRODUCTION DEPARTMENT

Steps involved in production process are described are by one as below

PRODUCTION PROCESS

MIXING

BLOW ROOM

Carding (Silver)

Drawing (Silver)

Simplex (Roving)

Spinning (Yarn)

Winding

Packing

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1. MIXING

Accounting to the requirement and counts cotton is mixed the mixing formula
is strictly confidential.

 Mixing bale opener

 Step cleare-1

 Mono cylinder

 Step clear-II

 Condenser case

 Krishner beater

2. BLOW ROOM

From missing section cotton is transferred to below room. In blow room

cotton is purified from seeds and dust. Every day nearly 9500 kg cotton is processed
at the below room and converted in to lab is 95 meter.

Each lab differs from standard and prescribed weight. In below room nearly
14 workers are working classification in below room

They remove he lap from structure cotton concerns

A below room process is controlled and guided by production manager.

As a routine maintenance blow room, machines are lubricated using grease

and oil to the follow the illuminated by the 18 lab lights. Fire extinguisher and water
sprayer are in this section.

3. CARDING

This is the next stage to the blow room process. This section converts Lab to
silver. During conversion process laps waste and dust formed during this process are
collected in a can. It needs 7 to 9 cans for the productions of 8 laps.

Carding section has the workers in the following categories

 Carding Tender

 Carding fitter

 Carding fitter helpers

 Sweepers

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 At fortnight basic machines is cleared here, weekly once lubrication is done in
the machine.

At the top carding room micro dust cleaners are asked to such remove the
dust.

4. DRAWING

This section converts the silver into the event in this process. This process
ensures that silver is uniform in cross section and though out in the length.

Categories of Employee in the section areas-follow

 Drawing tender

 Tender helper

 Fitter

 Asset fitter and oiler

5. SIMPLEX

Silver is converted in to moving. The final product from this section is directly
sending the spinning section as direct input. Seven machine are in one Bobbing
average weight is 125 grams. Each machine has 144 spindles. Mercury lights in use to
heart the fibers during hard season for avoiding roller lapping in machines.

Workers in simplex section are

1) Oiler

2) Fitter

3) Simplex tender

4) Tender helper and dotting boy,

6. SPINNING SECTION

Moving to yarn produced from bobbing in this section. Get is collected in the
from of spindles. This section has 36 rings, frames; totally it is having 440 spindles.

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Workers in this section are

1) Jobber

2) Reserve

3) Siders

4) Older can tape Sticker

5) Dotting boys

6) Dotting jobbers tape stitches

7. WINDING

For special purchase the yarn is taken to winding section and converted into
comes as per the requirement made from warping section. One cone has an average
weight 2.5.KGS.

8. DOUBLING

Doubling is used to remove the faults during spinning process. It gives

necessary twists or ring.

For doubling the cones are instructed into the machines to get a doubling a
cone yarn, of two cones with count No. as 2’s and 4s to be doubled and both are
joined and instructed into the machines.

9. REELING

Reeling is used for suit the yarn for dying, bleaching and for hand loom
weaving. Reeling is a process in which yarn through are converted into bank from two
workers are needed in either side of he machine, here normally females are allowed to
work.

10. PACKING

It means bundling and packing the cones. In the bag the company Trademark,
Address, Manufacture date, Batch number is printed. In a canny bag 60 cones are
packed. The reeling process yarns are bundled. In a canny 80 bundled yarns are
packed.

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QUALITY CONTROL SYSTEM

Following are the main function of quality control system

1) They estimate the quality characteristics of cotton. It helps to select good

fibers.

2) To measure the performance of process and to intimate the suitable

corrections to be adopted in the production process.

3) To check the quality of yarn.

2.3 MARKETING DEPARTMENT

The essence of marketing is an exchange or transaction, intended to satisfy

human needs or wants, That is marketing is human activity directed at satisfying
needs and wants, through an exchange process. A demand is a wants, for which the
consumer is prepared to pay a price. It is a service to the consumers desires or seeks.
Wants, become demands when backed by purchasing power.

The performance of business activities that direct the flow of goods and
service from the produces to consumer or user.

MARKETING

Without marketing company cannot sell the product, marketing department

takes care about this main aim is to develop the business to get profit. Following the
important function of marketing department.

 To maintain the stock list

 To maintain the placement of order

 To keep the analyzed stock

 To keep the competition performance

 To maintain appealing advertising

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 STRUCTURE OF MARKETING DEPARTMENT

Managing director

Chief Manager

General Manager

Sales officer

Assistant

The type of marketing of the company is explained below.

PRICE FIXATION

As the price of yarn increase (or) decrease, a meeting will be held every
Wednesday to fix the price of yarn and market situation will be taken into account.

MONTHLY CONTRACT

Buyer and seller produce a contract to sell the goods to the customer at fixed
rate. Quality yarn is generally sold on this contractor basis.

According to the market situation yarn which is in demand in the market is to

be produced. By doing this company will get higher profit.

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THE SALES STRATEGY TO INCREASE

Introducing the following three Way’s marketing department

increases the sales of the company

i. REDUCING THE COST

When the business turnover is in large scale, modern techniques are

used to reduce the cost to purchasing raw material in low cost some kind of
techniques may be applied. Due to the cost reduction the sales was improved.

ii. IMPROVING QUALITY OF THE PRODUCT

When the quality of the product is improved then the demand for this
product in market also is increased. Agents normally like to market good
quality product. By this, they can earn but profit. This may be done by
introducing modern techniques into the producing line.

iii. AGENT COMMISSION INCREMENT

By giving more commission to the agents also company may increases

the Sale. The agents are the main bridge between seller’s and buyers.

SALES TREND OF THE LAST 5 YEARS:-

YEAR YERN SALES (Rs)

2010-2011 11, 97, 24,186.00

2011-2012 12, 73, 97,150.00

2012-2013 13, 84, 14,250.00

2013-2014 14, 35, 15,000.00

2014-2015 14, 22, 45,432.00

The company has unlimited potential for the sale for it product viz. yam which
has its application in the handloom and power loom industry both in the organized
and unorganized sector.

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2.4 FINANCE DEPARTMENT

FINANCE DEPARTMENT

Without finance anybody cannot start business and run it smoothly. Company
needs finance for day to day business needs also.

This department is generally controlled by managing director. Success of

every organization depend upon affective finance administration. This department
deals with various cash and banking transaction.

STRUCTURE OF FINANCE DEPARTMENT

Finance is the comportment of business activities in every concern; finance is

required for meeting for the day to day needs of the centralized business enterprise.
The business can be standard and run smoothly with finance department. The
ancient’s departments are under the control of the secretary.

The finance and accounts department’s deals with function like cash and
banking transaction. The senior accounts officer who is associated by the assistant by
the officer and one cashier heads the accounts department.

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FUNCTION OF THE FINANCE DEPARTMENT

 Checks all the vouchers

 For bill adjustment receipt and push up for pass order to the special officers.

 Checks all the registers relating to the accounts section.

 Prepares monthly, quarterly and annual accounts.

 Prepares and furnishes all the return and accounts to sale tax and income tax
authority in time

 Arranges the timely collection of dues from the sundry debtors and payment to the
sundry creditors

 Signs all the cash bills and credit bills issued to preliminaries and others

 Issues all cash bill book and receipt books to sections and acts as custodian of
them

 Advise the management of finance matters and informs the cash position

 Analyses cash position

 Sees that books like cash book, ledgers, journals and subsidiary books are
maintained up to date

 Checks bill realization register

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 STRUCTURE OF FINANCE DEPARTMENT

MANAGEMENT DIRECTOR

CHIEF EXECUTIVE

GENERAL MANAGER

MARKETING CASHIER

ACCOUNTS OFFICER

ASSISTANT ACCOUNTS OFFICER

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2.5 ACCOUNTS DEPARTMENT

FUNCTIONS OF THE ACCOUNTS SECTION:

There are as follows:

 To checks all the vouchers, bills receipt and to pass them to the special officer.
To checks all the register regarding accounts section.

 To prepare monthly quarterly, Half and Annual accounts

 To prepare the regards and all return to sales tax income tax authority in time

 To take full in charge for collection dues from debtors and giving payments to
creditors, to issue all each books and act as a guardian function to give advice
regarding finance states to the management

 To checks bill realization register.

LEDGER: I

It contains the full detail about the banks loans, for example bank loan, profit
and loss, and fixed asset of the company and creditors for purchase and other creditors

LEDGER: II

It contains sale account ledger, opening stock, purchase ledger, labor salary
account, electric charge, repair and maintenance.

LEDGER: III

It has a list of store purchase, parties ‘account, list of raw material purchase,
parties’ account, deposit account and others.

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PREPARATION OF BALANCE SHEET:

The section prepares the balance sheet of the G.V.S Spinners Mills
(p) Ltd. And annual report every year. For this purpose, necessary
information is given to the section by all entire department.

VOUCHERS:

This department prepares a bill of payment and it is sent to the

concerned accounting section after checking it is passed to the section. If
it is found correct payment is made. The staff salary is disbursed on the
first day of every month. The wages of workers are paid on 6 th and 7th of
every month.

CASH BOOK:

The cash book register is the record of payment and receipt made
or received cash

BANK PAYMENT AND BANK RECEIPT NOTE:

In this mill, the bank transaction such as remittance of cash, and

the withdrawal of cash from the bank are done through the bank day
book.

2.6 PERSONNEL DEPARTMENT

OBJECTIVES

Every company needs adequate number of employees and skilled

worker to run the company safely and efficiently. The success and failure
of the organization not only depends on the ability of the personal but
also intelligence and skill of the workers. To accurate or talent workers is
the main objectives of this department.

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 PERSONNEL DEPARTMENT CHART

Time keeping section

Labour Welfare Section

Time Section

Security Section

STRUCTURE OF THE PERSONNEL DEPARTMENT

General Manager

Labour Welfare Officer Timekeeper

Asst.Timekeeper

Shift Clerk

Security
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1. RECRUITMENT

When vacancy occurs in the company but also in department will make
arrangements of advertisement includes the details of qualification terms and
condition of the company.

2. SELECTION

The objectives of selection process is to determine whether the applicant needs

the qualification for specified job and to choose the applicant who is not likely to
persons well in that job first selection applicants will be sustained in to the required
department

3. TRAINING

After the completion selection process training will be arranged for them
according to their job natures training market not only for newly appointed persons
but also for existing workers.

4. PROMORTION

Some times vacancies will be filled by existing workers considering the

security. It is received every year, employees who is having equal seniorities, union
recommendation and merits will be considered.

5. WORKERS IN THE MILL

 Office staff -25

 Permanent -80

 Professionals -10

 Labours -186

 Total -301

6. TIME OFFICE

The activities of workers of much managed and controlled by the staff on

every organization since the worker are minute’s forms part as production accordingly
the work load for worker is fixed.

Generally the salary was according fixation to production targets.

Management process is in the lands but not in staff. So it is necessary to keep records
of attendance of workers in time office

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THE FOLLOWING SHIFTS ARE MAINTAINED

I shift 6.30 am to 2.30 pm

II shift 2.40 am to 10.00pm

III shift 10.00 am to 6.00am

General shift general shift 8.30 to 5.00 pm

7. STAFF

Salary is paid to the staff on 31st of every month salary is paid to the
apprentice workers on for brightly basis.

Salary = basic+D.A+H.R.A

No.of working days (for 26 days)

8. CANTEEN

The canteen comes under the control of the personal department. Lunch, tea
coffee, etc, are provide to the employees at reasonable rates. The food items provided
by the canteen are very cheap as well as goods for the health

Token are issued in advance for a month on credit basis, which are recovered
from wages.

1 set meal rate Rs. 30/- only

9. EMPLOYEES PROVIDEND FUNDS

All the workers of the company are covered under the employee’s provident
fund scheme. Contribution is made by both the employees and the employees
specified in employees provident fund Act 1971.

The workers are also benefited with disablement benefit with their contribute.
If the employees expired, the fund is given to his Nominee.

10. BONUS

The management has been declaring Bonus every year as per the Bonus Act.

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11. EMPLOYEE’S STATES INSURANCE:
Employees who obtain a salary Rs 6500/- per month are concerned under this scheme.

For this 1.75% of the salary of the employees is deducted and the employer
also contribute to the extant of 4.75% by which the employee can obtain free medical
service from any ESI hospital. The depends of the employee can also get free medical
and from the same.

The deduction is made every month by the employers. In case of an accident

(or) injury forms 12, 13, 14 are sent to the ESI hospital forecasting the benefits, the
amounts is to be paid by the ESI corporation-Tirupur.

OFFICE AND ADMINISTRATION DEPARTMENT

ADMINISTRATION CHART

Office Administrative

Office Administrative section computer section

STRUCTURE

Managing Director

Office Administrative officer

Office Equipment Supervisor

Worker (or) Staff, Labour

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FUNCTION OF AN OFFICE

The function of a modern office can be dividend into the following categories;
and they are:

1) Basic or routine functions

2) Administrative management functions or ancillary functions.

The following are the basic function of an office:

1) To receiver or collect information

2) To prepare a record of such information

3) To process and arrange such information

4) To supply ready- made information to the authorities when asked for.

OFFICE APPPLIANCES AND MACHINES:

There are various types of applications and machines used by the company in
this day to day affairs some of them are below.

 Type writer

 Electronic writer

 Calculators

 Computers and

 Telephones

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MAINTENANCE OF OFFICE RECORDS AND RETURNS:

 Memorandum of association

 Articles of association

 Records regarding shares

 Records regarding the transfer of shares

 Register of shareholders, directors

 Register of members

 Register contracts

 Register of labour

 Fixed assets register loan investments register

 Stock register

 Register of network filled with the register

The return to filled with the register are

 Creation of change in respective of movable assets

 Creation of change in respect of immovable assets

 Creation of change in respect of book details

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2.7 COMMUNICATION SYSTEM

The very urgent are sent through telegram to the concerned parties or
concerned persons. Because this communication (telegram) will reach the parties
immediately.

TELEPHONES:

It is the best device the used today for oral communication.

COURIER:

Courier is one of the modern method of communication and very popular one
in all the industry for its promptness.

MESSENGER:

To avoid misplacement and to avoid delay, the matter is sent through

messenger. It also maintains secrecy and safety for concerned affair.

E-MAIL:

The important urgent matter are send through the email.

2.8 POWERHOUSE SECTION

CHART OF ELECTRIC SECTION

Electrical supervisor

(“C” certificate holder)

Shift Electrician

‘I’ person (Electrician)

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POWER HOUSE:

Power Electricity is important for every department of the company. In this

mill entire electric supply is controlled.

CAPACITY:

I transformer - 500kv amp

I transformer - 500kv amp

There is any power failure, the company use generators.

GENERATOR CAPACITY:

125Kva Zen set = 6months

320Kva Zen set = 1machines

62.5Kva Zen set = 1machines

TRAINING:

1 year apprentice training in the section.

There are two-wind tower at Muppantha, (Kanyakumari District) each tower

capacity on 225kv.

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 CHAPTER 3

SWOT ANALYSIS

STRENGTH

 The company is pioneer & reputed spinning industry.

 Dedicated management

 Good interpersonal relationship between manager & worker.

 The company products are in good quality & at reasonable price.

 The company follows good quality standards.

WEAKNESS

 Store room is far from the production plant, so material handling is a problem.

OPPORTUNITY

 Having strong financial background they can expand their business.

 They are well equipped with the latest technological & can increase
production.

THREAT

 The threat of competitors in the field.

 The change in government policies. EXIM policies.

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 CHAPTER 4

CONCLUSION

Through this individual training, I have secured a deep practical knowledge

about the various departments of SASI ANAND SPINNING MILLS (INDIA)
PRIVATE LIMITED, and I am able to gain knowledge about the various managerial
functions and how the employees are trained and how they are benefited in the
company.

I have also learned about the procedures of the company relating to a

secretarial work, accounting procedures, production process and marketing facilities
through this training and also about the new technologies adopted in the company.

37