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1. INTRODUCTION

2. INDUSTRY PROFILE

3. COMPANY PROFILE

4. DEPARTMENTATION

4.1. PURCHASE DEPARTMENT

4.2. PRODUCTION DEPARTMENT
4.3. STORES DEPARTMENT
4.4. FINANCE DEPARTMENT
4.5. MARKETING DEPARTMENT
4.6. MAINTENANCE DEPARTMENT
4.7. HUMAN RESOURCES DEPARMENT
4.8.PERSONNEL DEPARTMENT

5. FINANCIAL PERFORMANCE
ANALSIS
6. SUGGESTIONS

7. CONCLUSION
 1. INTRODUCTION

ABOUT THE INTERNSHIP TRAINING :-

INTERSHIP TRAINING is an exercise for the students who

are undergoing M.B.A program. The objective of the study is to
make the student familiar to the current industrial scenario. It
provides the students with the first hand idea n the general
working of the organization. The students get an environment
where he/she can actualize the knowledge he has acquired in his
curriculum. The exercise is an opportunity for the students to
understand the organizational structure, the major departments,
flow of information and various other functions in an organization.

Some of the things that can be learned from this training

are :-

 To acquire the knowledge about the organization setup.

 To know about the functional as well as managerial aspects
of the company
 To have practical knowledge of process involved in
company.
 To know welfare measures provided to workers in company.
 To know the marketing concept involved to market the
product of the company.
 To know what all are the systems are there in the company.
 To know how the labours are employed in the company.
 To know how the machines and all are maintained.
OBJECTIVES OF THE STUDY :-
 To analyze the effectiveness of A.S.A. Selvaraj Industries
and give the recommendation to improve existing sales and
production.
 To analyze the consumer behaviours and to study the
parameters influencing the purchase decision.
 To study and analyze the production performance of
A.S.A. Selvaraj Industries.

SCOPE OF STUDY :-
The present study is based up on the activities of
A.S.A. Selvaraj Industries.

METHODOLOGY :-
The study is based on both primary and secondary data. The
primary data are collected from the manager and other members of
company and secondary data are collected from annual financial
statements.

LIMITATIONS OF THE STUDY :-

The Study has certain limitations. The main of them are :-
 The complete details are not available from the from and
therefore scientific method could not be employed.
 The information is collected from the different
departments from the firm.
 The time allowed for the study is few weeks. It is not
sufficient to make an intensive of the unit.
 2. INDUSTRY PROFILE

The Textile Industry in India has been a pioneer industry.

India industrialization in other fields has mainly been achieved on
the back of the resources generated by the textile industry.

The Textile industry contributes 4% of the country’s GDP,

14% industrial production and 8% indirect tax revenue. It
employs close to 35 million persons – the second largest after
agriculture and accounts for 18% of industrial employment. In the
global context India offers comparative advantage in the textile
and apparel sector with its excellent raw material base, skilled
manpower and cost competitiveness.

The Indian textile industry has already established is same in

supplying high quality yarns and gray fabrics to the world market.
However it is yet to make an impact in finished products. It only
makes sense to go in for further value added products such as
garments and leverage on the country’s established name in these
export markets. Naturally, many textile companies have
announced plans to diversify into value – added business to target
higher realization and compete better in the export market.

Spinning in conversion of fibers into yarn. These fibers can be

natural fibers (Cotton) or manmade fibers (Polyester). Spinning
also entails production of manmade filament yarn (Yarn that is not
made from fibers). Final product of spinning is yarn. Cotton
value chain starts from ginning that adds value to it by separating
cotton from seed and impurities. Spinning is the foundation
process and all the subsequent value additions i.e. Weaving,
Knitting, Processing, Garments and made ups depend upon it.
Any variation in quality of spinning product directly affects the
entire value chain.
Co- operative spinning mills, a minimum installed capacity of
25,000 spindles is essential for a mill to operate as an
economically viable unit. Most of the mills at the time of their
establishment did not have this minimum capacity. Subsequently
the capacity of the mills expanded and now all the mills have the
capacity to operate as economically viable units.
Majority of the co – operative spinning mills recorded poor
utilization of the capacity with less than 85% of the installed
capacity up to 1977. In the subsequent years the situation
improved a lot and many mills were found to have achieved the
norm of 95%. This was mainly due to revised standards of
working hours and days. The major reasons for the under
unitization of the capacity were power shortage and shortage of
skilled laborers.
 3. COMPANY PROFILE

A.S.A. SELVARAJ INDUSTRIES, Vandavasi commenced on

1986. The company manufactures of Twisted Cotton and
Polyester Yarn. The company various process to be followed
spinning, weaving and knitting. The spinning operations started
on 19995 and the capacity of 30,000 spindles. The company had
gone for major expansion in spinning during 2007 at Vandavasi
with an installed capacity of 1,14,000 spindles. Knitting Division
started in the year 2009 is located in Coimbatore started with 52
machines now expanded up to 100 machines with capacity of 20
tons of grey knitted fabric.
Garments division started in the year 2011 with capacity of
production 1.5 Million pieces per year under the name of Fashion
Threads. Garments division expanded in the year 2015 with
capacity of 4.5 Million pieces per year under the name of Accel
Apparels.

SPINNING:

Unit - 1 with an installed capacity of 30,000 spindles which

produces around 16 tons of cotton yarn per day. Unit – 2 wit an
installed capacity of 1,14,000 spindles which produces around 41
tons compact yarn for knitting weaving.
Our major specialization is combed and compact knitting yarn
where we producing 60 tons. Equipped with spinning machinery
from LMW Coimbatore, RIETER Switzerland preparatory
TRUTZSCHLER Germany etc.

The complete spinning plant is installed with auto control

humidification system and waste collection system from blow
room to combing departments. All the spinning frames are
monitored by Ring Data System.
Knitting yarn is sold in major consuming centres in India like
Tirupur, Kolkata & Kanpur. Around 40% of the production is
expanded to China, Bangladesh, Korea, Philippines, Srilanka,
Tunisia and European markets.
The company has been awarded ISO 9001:2008 Quality
Certificate System by DNV Netherlands and Social
Accountability System SA 8000:2008 by TUV, Global Training
Method 5s certified by Quality Circle Forum of India. The
company is also awarded as Export House by Government of
India for its export performance.
FLOW DIAGRAM OF SPINNING

Cotton Mixing

Blow room

Carding

Combing

Drawing

Simplex

Spinning

Cone winding
KNITTING:
Knitting division started in the year 2009 is located in
Coimbatore, Tamil Nadu. It products Grey Single Jersey,
Interlock and Rib fabrics in diameter ranging from 20’’ to 36’’.
The knitting unit has the capacity to produce 3,00,000 meters of
knitted fabric per year.
1. 150 knitting machines of Pailung and Mayer & Cie
make.
2. 20 tons of grey knitted fabric production.
3. We converting all type of knit construction, Viz single
jersey, Interlock, Rib,
4. Pique flaw and other varieties.
5. Auto striper machines for yarn dye fabric.
6. Flat bed collar knitting machines for full integration in
house.
7. All machines with Spandex attachments.
8. 100% inspection of fabric rolls under 4 points
Inspection System.
9. Flexible Machine Specifications- Dia from 20’’ to 36’’
-24/28 GG.
FLOW DIAGRAM OF KNITTING
Knitting

Warp Knitting Welt Knitting

Circular Knitting Flat Knitting

Single Jersey Double Jersey

THE PROCESSING DIVISION:
The processing division is located at Vandavasi, Tamil Nadu,
which provides high quality Solutions for Textile dying, printing
and as well as finishing needs.

 Our production facility contains innovative and reliable

systems to match up to all levels of processing
requirements.
 Taking an advantage of our in-house spinning, we offer a
strategic advantage to.
 Daily 12 tons of various knitted fabric processed finished
according to buyer requirements.
 Our product range includes fabrics like Single Jersey’s,
Ribs, Interlocks, Piques, Honey Combs, 2T Fleece in
100% cotton and various blends.
 Our finishing range is apt for both Tubular & Open width
forms.
 Finishing includes Stenter frame EH-HWA from Korea
with MAHLO weft straightened.
 LAFER compacting machine from Italy for both tubular
and open width requirements.
 To cater to the growing demands of the top end apparel
brands, we have been continuously adding on new special
value added products with relevant performance finishes.

INVESTMENTS:
The investment for setting up a spinning mill with a capacity of
14,400 spindles works out to Rs.26.90 Crores and the breakup of
the cost is tabulated below. The land requirement will be around
2.5 acres. The preliminary & pre- operative expense works out to
Rs.136 crores. Plant & Machinery including installation, erecting
& transportation charges are of 16.9 Crores. Building and civil
works are estimated to be 6.55 Crores. Erecting & Transportation
and electricity deposits have been considered in the project cost
margin money for working capital is estimated to be 1.60 crores.

PROJECTION:

S.No Description Cost (Rs in

Crores)
01. Land & Site Development 0.08 0.08
02. Building & Civil Works 6.55
03. Plant & Machinery (Indigenous) 12.47
04. Plant & Machinery (Imported) 4.44

05. Erecting & Transportation 0.20

06. Electricity Deposits 0.20
07. Preliminary Expenses 0.10
08. Preoperative Expenses 1.26
09. Margin Money for Working Capital 1.60
Total Project Cost 26.90

The spinning mill can work at 85% for the first year, 90% in
the second year and 95% is considered from third year onwards.
The manpower requirement is considered at 100 personnel for
various level viz. Spinning caster, accountants, casual labors,
Technical & Supervisory staff and administrative staff.

MARKET:

The world cotton cultivation area and cotton production are

estimated at around 30-31 million tons respectively. The biggest
cultivators of cotton are America, India, China, Egypt, Pakistan,
Sudan and Eastern Europe. India is the third largest produces of
cotton after USA and China. USA has a considerable share in
world exports. India and China both fall short of their domestic
requirement and are net importers.
India Textile Industry contributes 4% to the GDP of the state; it
contributes 14% to Industrial Production, 9% of excise
collections, 18% of employment in industrial sector and has 16%
share in country’s export. Textile industry provides employment
to 35 million people in India.

RAW MATERIAL:
The main raw material for the spinning process is ginned
cotton will be available in Bales of 170 Kgs/bale.

MANUFACTURING PROCESS & TECHNOLOGY:

Spinning process is shown in the flowchart given below.
Cotton which is in the form bales is fed to blow room followed by
various operations like carding and combing depends on the
requirement. The final yarn of required specifications are met
through these operations and winded.
NAME AND ADDRESS OF THE COMPANY:
A.S.A. Selvaraj Industries
SF 273, Chetpet Road,
Vandavasi – 604 408.
Thiruvannamalai District,
Tamil Nadu.
asaselvaraj@yahoo.com.

PRORIETOR OF THE INDUSTRIES

Mr.A. Annamalai.

BOARD OF DIRECTORS
Mr.A. Selvaraj
Mr.A. Ravi
Mr.A. Vijayan

OUR SISTER CONCERNS :-

 A.S.A. SOMASUNDARAM COMPANY
Non-Woven Fabrics D-Cut & U-Cut Bags
 SRI ANNAMALAI INDUSTIRES
Mfrs. Of PP Tapes (Narrow Woven Fabrics)
 SRI RAVI INDUSTRIES
Mfrs. Of PP Tapes (Narrow Woven Fabrics.)
 4. Departmentation
The process of dividing the work into various units is known as
Departmentation. Departmentation results in economics of
operation. It results in the Effective utilization of man power. It
also helps the employees to perfect his job at hands. In other
words, to extract the best out of the employees it is necessary to
adopt departmentation is done on the basis of the function of
various departments.

The following are the department housed by A.S.A. Selvaraj

Industries, Vandavasi.,

 PURCHASE DEPARTMENT
 PRODUCTION DEPARTMENT
 STORES DEPARTMENT
 QUALITY CONTROL DEPARTMENT
 FINANCE AND ACCOUNTS DEPARTMENT
 MARKETING DEPARTMENT
 MAINTENANCE DEPARTMENT
 HUMAN RESOURCES MANAGEMENT DEPARTMENT
 PERSONAL DEPARTMENT.
 4.1. PURCHASE DEPARTMENT

In A.S.A. Selvaraj Industries, Vandavasi, Twisted Cotton &

Polyester Yarn purchase considered as purchase department. This
department concerned with the purchase of cotton and yarn from
different stations. The main function of this department is
purchase good quality of raw material and to help continuous
production out of the units only one is the process on manufacture.
The usual work of this department is preparation of supply
order, receipt, checking and recording of suppliers invoice and
delivery notes maintained of purchase journal and ledger checking
and certification for payment of suppliers bill etc.
In addition to raw material the mill busies stores material such
as machine store etc., The purchase machine spends main
objectives of purchase department to purchase the sound quality of
material at minimum cost.
Three copies of purchase order is prepared one is the supplier,
the other one is filled in the supplier file maintained by the mill
and the third one is warehouse keeper. Contracts regarding the
purchase of cotton are signed by the managing Director and
Factory Manager.

Objectives of purchase department:

Centralized purchase organization means purchasing functions
lies with a single person.
 To maintain continue supply.
  To ensure production schedule at minimum inventory
investment.
 To ensure the production of goods of better quality at a
competitive price by procuring materials that best suit the
product and the purpose for which they are intended.
 To suggest better substitutes to materials which are
currently being used with a view to lower the costs and
maintain quality of the product.
 To render assistance in standardization, variety reduction,
value analysis, make or buy decisions and other cost
reduction programmes.
 To create goodwill and enhance the company’s reputation
for being fair and maintaining integrity through its dealings
with the suppliers.
 Locating, selecting and developing qualified sources of
supply.
 To enable the company to maintain competitive position
and earn a fair return on its investment.
 To assist in fixing portable price and delivery schedule etc.,

CONSUMPTION AND MIXING BOOK:

Daily consumption of cotton is recorded in this book. We can
easily find out the store of this book. In this amount of cotton
received is entered according to the quality and entries are made
for every lot and sent to the production floor. Before the cotton
stable fiber is sent to the production floor the mixing of cotton is
record from this book. We can easily know the stock of the raw
materials.
Purchase Department Structure

Board of Directors

Managing Directors

Factory Manager

Shift Manager

Labour.
 4.2. PRODUCTION DEPARTMENT

Production is an organized process of manufacturing/

producing goods and services through the use of input resources of
men, materials, money, machines, minutes and methods. Gods are
physical objects that satisfy human wants services are those
function which have some unity for example providing legal
advise to a client repair of an automobile etc.,

Production management is concerned with these processes

which convert the inputs into outputs. The inputs are various
resources like raw materials, men, methods etc., and services that
is sent to the blow.

Production department consist of production manager who is

in change of the mill under him there are assistant manager
assistant spinning superintendent and mill supervisor. The mill is
having 33,600 spindles it produces fewer than 100% cotton yarn.

PRODUCTION PROCESS:

The raw material comes in the form of bales the balsas are
opened and the raw material is made into loose fiber and kept for
two days after.
 Bales

Blow Room

Simples

Carding

Drawing

Spinning

Autoconer Manual Winding

Cone Checking

Cone Packing

Yarn

Sales
BLOW ROOM:
The raw materials are fed into the blow room. Here the raw
material are cleaned all the dusts particles removed and other
material are separated comes out in the form of laps. The mills
have three blow rooms.
Insure the correct method is followed why prepared with
appraise of proportion of component.
Insure that the limit size fed to the MBO mixing bale opener is
as small as possible.

CARDING:
The laps obtained in the below room are fed into the carding
machine and taken as silvers. Here also cotton gets further
cleaned.
All of the rollers are covered in small teeth and as the cotton
progresses further on the teeth get finer.
Insure that all cadres are running at high speed.
Insure properly functioning auto leveller.

COMBER:
These slier gets from carding machine are fed to the comber.
In this machine all short fibers are getting removed.
Insure that lots and cons with correct identification marks are
used.
Insure proper function of push buttons, staking, in charge,
stopping and indicating lams.
 Check the lamp for defectives and take corrective action if
necessary.

DRAWING:
The silver get from the carding is fed into the drawing
machine. This machine is used to thicken the silver and the output
get a silver are given valued in the ans. This process helps
paralyze the fiber in the sliver.

SPINNING:
The bobbins getting from simplex is fed to the Spinning
machine where the yarn is getting producer.
Check that correct bobbins and empire are used.

PACKING:
Packing the cones getting from auto corner and winding are
packed in bags. Each bag is containing 50kg of yarn. It
is sending for market.

SIMPLEX:
The sliver get from the drawing machine is sent into the
simplex machine. In this machine the sliver is reduced into
vowing (cotton yarn) by means of various roles in the drafting
zone given to the roving. The roving is rolled on plastic bobbins
which are in different colors.
Production Department Structure

Board of Directors

Executive Directors

General Manager

Mill Manager

Spinning Master

Shift Supervisor

Labor
 4.3. STORES DEPARTMENT

The stores department consists of one storekeeper, assistant

storekeeper and store boy. The store is located nearby plant. In
the store they keep spare parts for various machines is the items
such as different types of oils diesel and grease are maintained in
this department.
If there is any particular item, he has to call for quotations from
the different suppliers and place order after getting permission
from the management to identify the spare parts. He has given
different code number for different parts. He is responsible for
any loss or theft.

Records maintained by stores department:

Material requisition slip:

To receive the spare parts the stores department receives the
material requisition slip must.

Spares and Stores:

The order important materials are spare and stores which are
necessary for production process. The stores – keeper takes the
responsibility to purchase all stores and spare items. He under the
control of factory manager.
 The following procedure is followed for the purchase of spare
parts and stores materials.
 Getting purchase indent from department
 Exploring the sources of supply
 Preparation and placing of purchase order
 Receiving and inspecting of materials
 Passing bill for payment.

Recorder Book:
Soon after the purchase, requisition is receive from any
department order are placed to the suppliers of there is no stock
the order placed are recorded in this book.

Daily Receipts:
In this book all arrival for of goods entered in this book
the date and tie of arrivals is maintained.

Bin Card:
Bin card is a record of movement of materials manager each
kinds of stock in respect of daily transaction, which is attached to
each bin or self or any other form of containers. It shows daily
receipts issues and balance and minimum quantity on hand. The
card shows maximum and maximum re-order levels.
Stores Ledger:
In the stores ledger, all the items along with the invoice
value are recorded and discount of any given the suppliers is also,
Fitter is the given responsibility to get the required things
from the stores with the absent of mill manager.
The spare parts purchase may be against ready cash credit
for a period of month and it depends upon the suppliers.
When bin cards do not show any details of information,
stores ledger is an alternative and an essential record to be kept in
maintained.
Nearly 11 departments depend upon the store for their
operation to be carried out. They are listed below.
1. Blow Room
2. Carding
3. Comber
4. Drawing
5. Speed frame
6. Spinning (or) Ring frame
7. Cone winding
8. Cone backing
9. Work shop
10. Power house
11. Generators.

Fitter is given the responsibility to get the required things

from the stores with the second of factory manager. The spare
parts purchased my be against ready cash or credit for a period of
month and it depends upon the suppliers.
 4.4. FINANCE DEPARTMENT

Finance is the science of funds management. The general areas

of finance are business finance, personal finance, and public
finance. Finance includes saving money and often includes
lending money. The field of finance deals with the concepts of
time. Money and risk and how they are interrelated. It also deals
with how money is spent and budget.
Finance works most basically through individuals and business
Organizations depositing money in a bank. The bank then lends
the money out to other individuals or corporation for consumption
or investment and charges interest on the loans.
A specific example of corporate finance is the sale of tock by a
company to institutional investors like investment banks, who in
turn generally sell it to the public. The stocks give whoever owns
it part ownership in that company.

Functions:
The according department function is the transactions related
to purchase and sales are recorded in the accounts books. The
accounts are prepared under the finance department only. Cash in
received in the evening and the amount is banked in the next day
morning all the payments are mostly paid by cheques.
Finance and Accounts department is controlled by assistant
general manager. The finance department has officers. The work
of the department is the look after the affairs of the company.
This department conducts various studies and gives in the form of
different ratios this department advice the marketing department
regarding the credit period to the given to customer and various
discount which can be giver for promote payment are cash
discount. The mill has got loan from Industrial Development
Bank of India (IDBI) and State Bank of India (SBI), Chennai. The
financial department looks after the loan affairs of the company.
The office manager is the head of the accounts department
under the office manager comes the accounts officers accountants
cashier clerks spew and office boy etc., The office manager is
reasonable for over all administration of the office the department.
Record day to day the mill maintain to through computers. The
look maintained by the development is purchase journal, sales
journal, purchase ledger, sales ledger.

The objective of these financial activities include:

 Formulating strategy
 Planning and controlling activities
 Decision making
 Optimizing the use of resources
 Disclosure to employees
 Safeguarding assets.

The functions of the financial department include.

 Planning and forecasting
 Modification of data
 Financial analysis and interpretation
 Facilitating managerial control
 Communicating to various people
 Co-coordinating
 Helpful in taking strategic decisions
Finance Department Structure

Manager

Assistant Manager

Finance Executives

Auditor

Accountant

Cashier

Clerk

Staffs
 4.5. MARKETING DEPARTMENT

Marketing is an integrated communications – based prices

through which individuals and communities are informed or
persuaded that existing and newly- identified need and wants may
be satisfied by the products and services of others.
Marketing is used to create the customer, to keep the customer
and to satisfy the customer. With the customer as the focus of its
activities, it can be concluded that marketing in one of premier
components of Business Management – the order being operations
(or Production). Other services and management activities such as
Human Resources, Accounting, Law and legal aspects can be
bought in’’ or’’ contracted our’’.

Definition
Marketing is defined by the American marketing associations
as the activity, set of institutions, and processes for creating,
communicating, delivering and exchanging offerings that have
value for creating, clients, partners, and society at larger. The
term developed from the original meaning which referred literally
to going to a market to buy or sell goods or services.
The chartered institute of marketing defines marketing as “The
management process responsible for identifying, anticipating a
satisfying customer requirements profitably”.
FUNCTIONS:
The functions of marketing may be buying, selling, financing,
risk bearing, standardization, market information, transportation
and storage.

IMPORTANT FUNCTIONS:
 Customer list
 Fixation of price
 Format of letter of credit
 E- Marketing
 Channels of delivery
 Sales performance
 Segmentation
 Environment Factors
 Canvassing Customers
 Attracting
 Dealing promotion
 Competitors
 Customer service

The essence of marketing is an exchange or transaction

intended to satisfy human needs or wants. Tat is marketing is a
human activity disserted at satisfying the needs and wants, through
an exchange process. The aim of marketing is to make sales in
order to earn reasonable profit for the producer.
This department deals with the marketing of various counts of
yarn manufactured by the mill the marketing department is
controlled by the assistant factory manager under him there are
sales staff. The company has branch of Bombay and Pondicherry
the mills sells directly or through the branches and consignment
agents.
The mill also exports its yarn to states like Chennai, Kerala,
Coimbatore etc., This is done through merchant exporters or some
time directly mills sells directly to the customer in the local
market the duty of the manager is to above market and give report
to the management. The staff keep close watch on the competitors
price credit period allowed by the discount any given and it also
has the conveys the customers regarding the quality of the years
supplied to the customer under him there are two to three officers.
In A.S.A. Selvaraj Industries Mfrs. Of Twisted cotton and
Polyester yarn department refers to marketing department yarn is
the final product produced and sold.

The Mill adopts Five Procedure for sales:

 TNGST Sales
 Consignment Sales
 C.S.T. Sales
 Branch Sales
 Direct Export

TNGST SALES:
Tamil Nadu general sales tax sales means within Tamil Nadu
mostly at Chennai consignment sales.

The minimum rate at which the yarn is to be sold:

As soon as the yarn is received by the consignment agent he
sells the same in the market on the account of the mill subject to
the conditions imposed by the mill. The agent is paid a
commission of 1% on the bill.
The day to day sales of the company are recorded first in
the sales day book.

CST Sales:
Central sales tax (CST) i.e. sales outside Tamil Nadu sales
from the mill to Kanpur and other parts of the country covered by
CST.

Direct Export:
The mill sells good exporting England, Srilanka directly on
the basis of the letter of credit order received from the parties
abroad. The same types of concession of merchant exports are
enjoyed by the mill for the direct export.
The day to day sales of the company are recorded first in the
sales day book the following is the specimen of sales day book.
Marketing Department Structure

Manager

Assistant Manager

Marketing Executive

Marketing Incharge

Staff
 4.6. MAINTENANCE DEPARTMENT

Machine Building and other service facilities are subject to

deterioration due to their use and exposure to environmental
conditions process of deterioration if left unchecked, culminated
in rending these facilities unserviceable and bring them to stand
still, industry therefore has no choice but to attend stop them from
time to time the repair and recondition them so as to lengthen their
life to the extent it is economically and physically possible.

Types of Maintenance:

Maintenance System

Planned Unplanned
Maintenance Maintenance

Preventive Corrective
Emergency
Maintenance Maintenance
Maintenance

Running Shutdown Break-down Shutdown

Maintenance Maintenance Maintenance Maintenance
Planned Maintenance:
Planned maintenance represents and advancement over the
above mentioned types of maintenance.
Planned maintenance visualize the work contain in a future job
determine the best method to the adopted and skill required for it
is execution.

Preventive Maintenance:
Preventive maintenance consists of routine action taken in
planned manner to prevent breakdown. Lubrication and
inspection are two constituents of preventive maintenance.
Lubrication ensures long and safe working of the equipment
without mishaps.
Inspection facilities detection of fault in a equipment so that
repair and replacement may be undertaken before the fault
assumes the preparation and shape of a break-down.

Preventive Maintenance Activities

Direct Activities Indirect Activities

1. Cleaning of the equipment 1. Condition Monitoring

2. Lubrication to prevent wears 2. Failure Statistics
3. Programmed replaced 3. Adjustment to limit
Break Down Maintenance:
Break down maintenance refers to the repair work taken after
the failure of maintenance equipment. For example a machine
stops working because the belt gets torn. Replacement of the torn
belt in a case of break down maintenance it involves mainly the
repair of effective equipment.

Corrective Maintenance Activities

Planned Activities Non Planned Activities

1. Normal repairs 1. Break down

repairs
2. Programmed replacement
3. Large storing actions
(over value)
4. Modifications for reduce
maintenance equipment
Emergency Maintenance:
Emergency maintenance is carried and when unexpected
breakdown acquire in machine. The reporting of breakdown the
diagnosis of failures, allocation of repair work to special
maintenance staff, getting spare and quick attendance of failure
comes under the organization the planning emergency
maintenance.

Machinery Maintenance:
Organization of maintenance department in a textile:
For an efficient maintenance programmed in textile mill it
should be respirator from production management. A qualified
person in textile with an engineering background or qualified
mechanical engineering with good experience in textiles can be
exclusively in change of maintenance.
Textile mill consist of more than 33,600 spindles and two
fitters are provided in preparatory and spinning. Because of large
number of machine under maintenance operation at a time. More
skilled operatives assistant fitter. Fitter helper, grinder etc., to
make the maintenance operation effective. A total of person are
working. Mechanical supervisor and clerk for record keeping will
assist the maintenance engineer.
 4.7. HUMAN RESOURCES MANGEMENT

MEANING:
Organization are made up of people made function through
people without people organization cannot exists.
The resources of men, money, materials and machinery are
collected and co- ordinate and utilized through people.
They need to be united in team only through the combined
efforts of people the material and the money resources are
effectively utilize for the attainment of common objective without
united human efforts no organization can achieve its goal.

DEFINITION:
“Human resource or manpower management effectively
describes the process of planning and directing the application,
development and utilization of human resources in employment”.
-Dale Yoder.

“HRM is that part of Management process which is primarily

concerned with the human constituents of an organization”.
-E.F.L. Brech.

“The personnel function is concerned with the procurement,

development, compensation, integration and maintenance of the
personnel of an organization for the purpose of contributing
towards the accomplishment of that organization’s major goals or
objectives”. – Flippo.

OBJECTIVES OF HUMANRE SOURCE MANAGEMENT

Objectives are benchmarks against which actions are

evaluated. A broad objective of HRM is to optimize the
usefulness (i.e. productively) of all workers in an organization.
However there are four types of objectives that are common to
human resource management. They are:

Social objectives

Organizational objectives

Personal or employees objectives

Labour union objectives

Functions of HRM
HRM performs a number of function/activities for the
achievement of the objectives of at HRM fig.12, illustrates the
major activities comprising the management of resources. The
number of different external environmental forces are shown at
the outer side of the figure (in bold letters), which will discussed
separately in section.
Organizational planning and development,

Strategic are human resource planning.

 Design of organizational structure
 Designing interpersonal relationships.
 Assessing current human resources
 Assessing future human resources needs, and
 Developing a program to meet the future needs,
 It is and assessment that defines job and the behaviours
necessary to perform them.

Staffings:
It concerns the requirement and selection of human resources
for an organization. It includes
1) Manpower planning
2) Recruitment
3) Selection and placement,
4) Induction
5) Promotion and transfer
6) Separation.
Health and Safety:
Organization a should be most responsive to eh concern about
the physical mental health, and safety of employees.
Organization should provide safer and healthy working
condition for employees

Employee relations:
The formal relationship between employees and their
employees must be managed for the benefit of both
To facilities good employee relations, it is important to develop
and communicate HR policies and rules.

HR DEPARTMENT STRUCTURE

Manager

Assistant manager

Advisor

Staff
 4.8. PERSONNEL DEPARTMENT

Personnel department is that part of the management function

which is primarily concerned with human relationship within an
organization. It objectives is the maintenance of those relationship
on a basic of the individual, enable and all those engaged in the
undertaking to make their maximum personal constitution in the
effective working of the undertaking.
Human resources development is a continuous process to
ensure the development of employee competences, dynamism,
motivation and effectiveness in a Symantec and planned way.

MANPOWER REQUIREMENT
o Casuals for production details maintains
o Maintaining inspector of factories all return
o Employees PF al return monthly & annual returns
maintains and processing.
o Maintaining employees leave and attendance details
o Maintaining employees monthly salary details
o Maintaining profession tax and labor welfare board
remittance.
o Land tax and documents maintenance.

LABOUR WELFARE MEASURES

The following are some of the schemes initiated by the
company to motivate its employees.
TRAINING AND DEVELOPMENT:
The HR Department is responsible for overall performance of
staff and workers. Main function of the department is recruiting.
The board of directors lay down the policies relating to the
recruitment, training, placement, transfer and promotion of
employees. The department has to implement these policies. The
workers training them and their placement in suitable jobs.

Working Shift:
Shift Working Hours Integral Time
I Shift 8 am to 4 pm 12 to 12.20 am
II Shift 4 pm to 12 pm 8 to 8.30 pm
III Shift 12 am to 8 am 4 to 4.30 am

Employees Provident Fund:

All the employees and worker of the company are covered
under the employee’s provident fund scheme emergency, electric
set up rainfall in this way the fund to be used. This scheme only
uses in permanent workers the company only help payment to the
workers. 10% provident fund scheme to be used in this company.

Leave and Holiday:

Every worker is entitled to take on day leave for 20 working
days of a worker works for a minimum of 240 days in a year will
be eligible 9 days leave with wages.
Casual Leave:
An employee shall be entitled to casual leave up to a maximum
of 4 days as per the settlement data in each calendar year. Casual
leave may be take on the sickness ground without a medical
certificate; casual leave is intended to meet special or unforeseen
circumstances for which the provision cannot be made by exact
rule.

Festival Holidays:
The mill will not be functioning for 9 days due to the national
and festival holidays as per the act Pongal, Aadifestival, Tamil
New Year, Deepavali and AyuthaPoojaare festival holidays.

National Holidays:
Republic Day, Independence Day, May Day and Gandhi
Jayanthi are national holidays.

Allowance:
The management provides many allowance and facilities
considerable welfare measure to promote the interest of the
workers the mill gives the following allowances.
 Dearness Allowance
 Leave Travel Concession
 Production Incentives
 House Rent Allowance
 Gratuity
  Bonus
Bonus and Ex- gratia are paid to the workers for Deepavali
minimum 8.33% that is month salary 35% bonus was given by the
management to workers.

Welfare Measures Canteen:

The canteen come under the personal department the company
is having a canteen run by a contractor, food, snacks are provided
in a subsidized rate along with variety rice, tea taken in bops and
etc.

Rest Shed:
The company having a rest shed to enable worker take rest
during the intervals or prior to attending shifts.

Death Relief Fund:

Death relief fund is setup for providing finance help to the
nominee or legal heir of th deceased labors. The management
contributes Rs.2,500 as death relief fund to the employees who
died while in service.

Co- operative Stores:

There is a separate co-operative store for the employees of the
mill employees co- operative store is there for the employees who
purchase all kinds of house hold articles and cloths at cheaper rate.
Production Incentives:
The management gives incentives to the workers. It achieving
production of more than their work standards in the department.
 Preparatory
 Spinning
 Winding

Pension Fund:
10% fund allotted by the management employee pension fund.
In this fund 12% interred to be allotted by management to the
worker’s pension scheme only apply to 1 year under the benefited.
The company also contributed to disablement benefit to the
workers if the worker if the employee dies this fund is given to his
nominee.

Time Office:
The overall control of the time office is vested center head time
keeper. He has ESI and other returns assistant time keeper
functions under him. He is in charge of preparation of wages bill
muster roll.
The service record consists of dare of appointment address
details about the family rate of wages resignation punishment
leave particulars etc., and any punishment’s or notice served to
any employee are recorded in the service register of the
employees.
Pay Slips:
The company issued 3 pay slip namely 1 pay slip for the
administrative and office staffs pay slips 11 for the oils and
masteries pay slip 6 for workers and labor to prepare a pay slip
and report we should considered the payment.

PERSONNAL DEPARTMENT STRUCTURE

Board of Directors

Managing Directors

Factory Directors

Assistant Factory Manager

Personnel Officer

Head Time Keeper

Assistant Time Keeper

Security
 5. FINANCIAL PERFORMANCE ANALSIS

Financial performance is an important aspect which influences

the long- term stability, profitability and liquidity of an
organization. The financial strength (or) weakness of a firm may
be identified through “Financial performance analysis” is done by
computing, financial ratios. Hence an attempt has been made in
this chapter to analysis the financial performance of A.S.A.
SELVARAJ INDUSTRIES, VANDAVASI., with the help of
financial ratios.

MEANING OF RATIO
Ratio simply means one figure expressed in terms of another.
A ratio is a mathematical relationship between two items
expressed in a quantitative form.
Ratio analysis is a widely – used tool of financial analysis. It is
“The process of determining and presenting the relationship of
item and groups of items in the financial statement”.
Ratio can be defined as “Relationship expressed in Quantitative
terms between figures which have cause and effect relationship or
which are connected with each other in some manner or the other.
TYPES OF RATIO
Ratio analysis indicates about the financial position of the
Company. A company is deemed to be financial sound it’s a
position to carry on its business smoothly and met all its
obligations. Both long term as well as short term without strain.
CURRENT RATIO:
Current ratio is the relationship between current assets and
current liability. This ratio is also known as working capital ratio.
This ratio is a measure of general liquidity and is most widely
used to make the analysis of short-term financial position or
liquidity status of a firm. A high ratio indicates inadequate
employment funds, while a poor ratio is a signed danger signal to
the management. An ideal and standard ratio is 2:1. Formula,
Current Assets
Current ratio =
Current liability

Current Ratio
Year Current Current Ratio
Assets Liabilities
2014-15 98607905 22204065 4.44
2015-16 161490340 33688024 4.79

Interpretation:
The current ratio of A.S.A. Selvaraj Industries, Vandavasi,
was in a good position to maintain its solvency in all the study
periods.

LIQUID RATIO:
 This ratio is also known as the “Acid test ratio” or “The quick
ratio” or “the near money ratio”. It is only a variation of current
ratio. It explains the relationship between liquid assets and current
liabilities. An ideal liquid ratio of 1:1 is usually considered to be
good and satisfactory. Formula
Liquid Assets
Liquid ratio=
Current Liability
Liquid Ratio
Year Liquid Assets Current Ratio
Liability
2014-15 48653454 22204065 2.19
2015-16 45072189 33688024 1.33

INTERPRETATION:
In the table the Liquid Ratio of A.S.A. Selvaraj Industries,
Vandavasi., the ratio for the year 2015-16 is 13.3 when compared
with previous year 2014-15 is 2.19 the ratio results shows the
decreasing trend.
SOLVENCY RATIO (LONG-TERM SOLVENCY):
The term ‘Solvency’ refers to the ability of the company to
repay its outside liabilities. The ‘solvency ratio’ refers to those
ratios which deals with company’s ability to meet long- term
liabilities.

1.Fixed assets Ratio

 2.Ratio of Current assets to Fixed assets.

FIXED ASSETS RATIO:

This ratio is also called ratio of capital or long- term funds to
fixed assets. It establishes the relationship between fixed assets
and long-term funds. The main purpose of calculating this ratio is
to find out the proportion of long-term funds invested in fixed
assets. An ideal Fixed assets ratio of 1:1 is usually considered to
be good and satisfactory. It is calculated by using the following
formula:
Net fixed Assets
Fixed assets ratio=
Long- term funds
Net fixed Assets = Gross fixed assets – Total Depreciation.
Long- term funds = Equity share capital + Reserve & Surplus +
Loan funds.

Fixed assets Ratio

Year Net Fixed Long-term Ratio
Assets funds
2014-2015 184297318 328090243 0.56
2015-2016 164140626 285217134 0.57

Interpretation:
 The fixed assets ratio comparing to two years with same ratio,
the net fixed assets decrease in long term funds. That means long-
funds invested in fixed assets.

RATIO OF FIXED ASSETSTOCURRENT ASSETS:

This ratio establishes relationship between fixed assets and
current assets. It is worked out as given formula,
Fixed Assets
Ratio of Fixed assets to Current assets ratio =
Current Assets
Ratio of Current Assets to Fixed assets
Year Fixed Assets Current Ratio
Assets
2014-2015 184297318 98607905 1.87
2015-2016 164140626 161490340 1.02

Interpertation:
The Ratio of Current Assets to Fixed assets ratio comparing to
two years, the ratio is decrease means that trading is slack or
mechanization has been used. At the same time Current assets
increase with the corresponding increase in profit, it will show that
the business is expanding.

PROFITABILITY RATIOS:
Every business concern aims at earning maximum profit.
Profit refers to the absolute quantum of profits, whereas
profitability refers to the ability to earn profits. Profitability ratios
are the ratios which are computed to evaluate the performance and
efficiency of the business concern. Profitability ratio are mainly
used by the owners.
a. Gross Profit Ratio
b. Net Profit Ratio
c. Expenses Ratio

Gross Profit Ratio

The gross profit ratio expresses the relationship of gross Profit
to net sales in terms of percentage. A result of high profit ratio is
Relative to the company average implies that the firm is able to
produce at relatively low cost. The gross profit ratio may be
reflected a high cost of goods sold, due to the company is not able
to purchase at favourable term, and in efficient utilization of plant
and machinery resulting high cost of production. Formula,
Gross Profit
Gross Profit Ratio= * 100
Net Sales
Gross Profit = Net Sales- Cost of Goods sold.
Gross Profit Ratio
Year Gross Profit Net Sales Ratio
2014-2015 161406384 312980472 52%
2015-2016 114267889 326391475 35%

Interpretation:
 The Grass Profit Ratio is high that means better profitability of
the products sold by the business concern but the gross profit ratio
is decreased that means low profitability.

NET PROFIT RATIO:

The Net Profit ration helps to measures relationship between
net profit and net sales. This an indicated to assess the company’s
performance and its sales promotion. This ratio measures the
overall profitability and efficiency of the management in all
activity of the business. This ratio also indicates the firm’s
capacity to face adverse economic conditions such as wide
fluctuation of price, completion, low demand etc.
Net Profit
Net Profit Ratio= * 100
Net sales
Net Profit Ratio
Year Net Profit Net Sales Ratio
2014-2015 8119861 312980472 2.60%
2015-2016 6237800 326391475 1.91%

Interpretation:
The Net Profit Ratio is high that means better the business for
the of 2014-2015 and for the next year lower net profit ratio on the
other hand, reveals that the company has poor profitability as
compared to that of the industry.
EXPENSES RATIO:
Expenses ratio are those ratios which are computed to ascertain
the relationship between various components of cost and sakes.
These ratios disclose the portion of sales revenue consumed by
various expenses.
Ratio of selling & distribution expenses to sales
Selling & distribution expenses
= * 100
Net Sales
Selling & distribution Expenses Profit Ratio
Year Selling & Net Sales Ratio
distributiom
2014-2015 11370448 312980472 3.63%
2015-2016 14486077 326391475 4.44%

Interpretation:
The Expense Ratio is lower the ratio, the greater will be the
profitability and efficiency of management for the period of 2012-
2013 and the high ratio for the period of 2013-2014 high ratio, the
poor profitability as compared to that of the industry.

ACTIVITY TURNOVER RATIO:

Profit depends on the rate of turnover and the net margin. A
good turnover is essential for all the companies. The performance
of a company is generally evaluated on the basis of turnover.
Higher turnover means better performance which indicated
optimum utilization of resources at its disposal.

CAPITAL TURNOVER RATIO:

This ratio shows the efficiency of capital employed in the
business by computing how many times capital is turned over in a
stated period. This ratio is calculated by using the following
formula,
Sales
Capital Turnover ratio =
Capital employed
Capital employed = Net Fixed Assets + Working Capital.
Working Capital = Current Assets – Current Liabilities.

Capital Turnover Ratio

Year Sales Capital Ratio (times)
employed
2014-2015 312980472 260701158 1.20
2015-2016 326391475 291942942 1.12

Interpretation:
The Capital turnover ratio ensures whether the capital
employed has been effectively used or not. It also shows the
profitability and efficiency of management. Higher the ratio for
the period of 2014- 2015, more efficiency rotation of capital
employed and as a consequence, higher profitability. At the same
next year 2015-16, the ratio decrease compare to previous year.
That means poor efficient rotation of capital employed.

FIXED ASSETS TURNOVER RATIO:

This ratio establishes the relationship between sales or cost of

goods sold and fixed assets. It determines whether the investment
made in fixed assets has really helped in generating sales. It is
used to effect improvement, if any, in sales due to increased
investment infixed assets. It is calculated by using the following
formula,

Sales
Fixed Assets turnover ratio=
Fixed Assets

Fixed Assets Turnover Ratio

Year Sales Net Fixed Ratio (times)
Assets
2014-2015 312980472 184297318 1.70
2015-2016 326391475 164140626 1.99

Interpretation:
The Capital turnover ratio ensures whether the capital
employed has been effectively used or not. It also shows the
profitability and efficiency of management. Higher the ratio for
the period of 2014-2015, more efficiency rotation of capital
employed and as a consequence, higher profitability. At the same
next year for 2015-16, the ratio decrease compare to previous
year. That means poor efficient rotation of capital employed.

WORKING CAPITAL TURNOVER RATIO:

Working capital means excess of current assets over current
liabilities. Working capital is closely related to sales. Working
capital turnover ratio indicates the number of times the working
capital is converted into sales. It is calculated with the help of the
following formula,
Sales
Working Capital turnover ratio =
Net Working Capital
Working Capital = Current Assets – Current Liabilities.

Working Capital Turnover Ratio

Year Sales Net Working Ratio (times)
Capital
2014-2015 312980472 76403840 4.10
2015-2016 326391475 127802316 2.55

Interpretation:
The Working Capital turnover ratio for the period of 2014-
2015, higher the ratio, the lower is the investment in working
capital and greater are the profits. But the next year 2015-16.
Lower the ratio, the higher is the investment in working capital
and lowest are the profits.

FINDINGS, SUGGESTIONS AND CONCLUSIONS

FINDINGS

 The Current Ratio is 4.79 times. When compared to ideal

position, the higher the ratio, the more protected are the
short-term creditors. It is satisfactory to creditors.
 The Liquid ratio is 1.44 times. When compared to ideal
position, the higher the ratio to the good and satisfactory
of the company.
 The Fixed assets ratio is 0.57. The ratio is less than 1, it
implies that company has used short- term for fixed assets
which are not prudent on the part of the company.
 The Gross Profit ratio is 35%. It indicates the more sales.
 The Net profit ratio is 1.91%. The company should
minimize the operating expenses to increase the ratio.
 The Capital turnover ratio is 1.12 times. The company
should increase the sales to increase the ratio.
 The Capital turnover ratio is 1.12 times. The company
should increase the sales to increase the ratio.
 6. SUGGESTIONS

Very happy to suggest the following points which may help the
productivity and this increase the profit of the company.

 At present the company A.S.A. Selvaraj Industries,

Vandavasi, has on company secretary one the factory
manager acts as the secretary the company man appoint
secretary as early as possible to decrease the workload of
the factory manager and this increase the concentration in
the most important secretarial department.

 The company earned a good profit for the last some years.
The company has also earned good will in the yarn
production and also among the private. It is we humble
suggestion that the company can go for a public use to
increase their spindle age and thus the profit of the
company can be increased.

 The company must try to promote in the form of

advertisement, publicity, etc.,

 The company may spend more for the welfare of the

employees because they are hands of every business. So
company takes care about their employees.
 CONCLUSION

Finally indeed this short of training gives me the good

knowledge about the process and working condition of the factory.
I get an opportunity to know the entire process and unit operation
that plays in the factory which will be very helpful I get a change
to work in any factory.
A.S.A. SELVARAJ INDUSTRIES, VANDAVASI, for the
production sets on excellent example for other organizations here
maintenance of records and filled keeping the time up satisfaction
the incoming material all the above buyer and seller relationship
are harmonious.
We obtained only theoretical knowledge in classes and in a
seminars but practical knowledge in A.S.A. SELVARAJ
INDUSTRIES, VANDAVASI, are totally different from that. We
thank to A.S.A. SELVARAJ INDUSTRIES, VANDAVASI, for
their valuable training.
The studies also suggest some favourable alternatives idea
and plans to the organization which is being considered for growth
of the organization.
I once again express my thanks to all technical staff and
workers who have rinsed their co-operation knowledge to know
the process involved in the factory.