TEXTILE INDUSTRY IN SURAT

In India the main manufacturing of the textiles is done in the SURAT city. The SURAT textile industry has the largest concentration of looms in the world leaving man-made fabrics. It has a total coverage of approximately 1.75 lakhs which is even larger than that of Ahmedabad and Mumbai.

HISTORY OF DEVELOPMENT IN SURAT

It is unbelievable that Surat is the largest center in the world for the production of synthetic fabrics like nylon and polyester. Daily production is about 42lakhs meters valued at Rs 4 crores per day. There are about 160 process houses, which processes nearly 25 lakhs meters per day. The industries in SURAT employees more than 1 lakh workers The beginning of the industry in SURAT is hardly 35 years old. Today, the number of authorized looms in SURAT is approximately 4 lakhs, though the total number of looms are anywhere between 1.5 and 1.8 lakhs. It is known from the reports that daily new machines are imported from china and Korea. There is new trend came which is known is sequence embroidery. These machines costs about 7 to 8 lakhs per machine but it designs many sarees at a time with the help of the computer. These machines are imported from China and Korea generally. In the 1950s, there were only about 7000 power looms in SURAT. The 10 families who have played a leading role for the growth of the industries are Bachkaniwalas, Hathiwala, Vakharia, Dhamanwala, Mahatma, Dr. Amichand Shah, Chevli and Lekhadia. Now days the Textiles business is very big in the SURAT, So, now the SURAT is known as the Textile City.

COMPANY PROFILE
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Garden Silk Mills Ltd. Is one of the leading textile industrial companies of India and plays a leading role in fashion fabrics with the annual sales of us $90 million. They sell their products under a single banner of quality named garden garden silk mills ltd. Designs, manufactures, and market the polyester yarns primarily in India. It offers fine filament and micro filament polyester fabrics, such as georgettes, chiffons, fiaillies, and dyed and printed jacquards for ladies blouses, skirts and dresses, as well as sarees. The company also manufactures a range of printed pure silk chiffon, cotton, and viscose. In addition, it offers partially oriented yarns, draws warped yarn, sized yarns, Grieg fabric and dyed and printed fabric, as well as apparel, including vareli business shirts and ready to wear ladies garments. The company sell its products through 68 dealers, 18 company owned depots, and 293 retail outlets in India. The company has made vertical and horizontal integration from its establishment. It also market its products in united kingdom, France, Spain, Portugal, Greece, United states, Australia, Singapore, Thailand, Hong Kong, Mauritius, South Africa ,brazil .thus garden silk mills has established brand name in India as well as the international markets. Thus the company operates a complete line from the manufacture of the yarn, fabrics to the dyeing, weaving, processes and finally the finished dress materials and sarees. Company head : Mr. Praful Shah

Name of the heads: HR,FINANCE,MARKETING,PRODUCTION DEPARTMENTS Human resource department Production department Marketing department Finance department NAME OF THE HEADS Mr. Sudhir Sud Mr. Manish Shah Mr. Kamal Desai Mr. Nitin Modi

What business the company is in?

The company is doing a business of manufacturing and selling POY chips, Fabrics, silk cloths and readymade garments. 2

 HISTORY OF COMMENCEMENT
YEAR OF COMMENCEMENT

:23rd July1979

HISTORY OF THE COMPANY

The company belongs to the garden vareli group, which is one of the leading manufacturers of synthetic textiles in India. The origins of this business go back to 1920 when Dr. Amichand shah installed the first looms in Surat & laid down the foundation of art silk industries in Surat. These were the first ever looms in Surat city. Garden silk weaving factory, as it was then named manufactured viscose jacquard sarees, laying the foundation of the leading group of today. Today, the company is one of the largest manufacturers in India of high faction; premium quality dyed & printed textile fabrics both polyester as well as viscose comprising a range of sheer chiffon & georgette, chambray & crepes, palace & tailed for ladies, fashion fabrics as well as Indian sarees. The company is also manufacturing gray cloth, verity of yarns & readymade garments, etc. The company also manufacturers an exclusive range of pure silk & cotton fabrics. The fabrics are marked under the famous brand name: garden & vareli. The present chairman and managing director of garden silk mills ltd., Mr.Praful shah who is the youngest son of Mr. Amichand shah. Mr.praful shah taken qualification in USA in 1965 after which he joined the company, up to that date garden silk mills ltd. Had activities of the company to include processing cloth by introducing dying, printing and finishing processes. As a result of this, the company was able to supply finished textiles for the first time. Garden silk mills ltd. was incorporated on July 23, 1979. It the first textile industry with such a large capital fabric manufacturer. The company has also achieved the export awards for the years 1978, 1979, & 1980.

LOCATION
REGISTERED OFFICE: Sahara gate, 3

Surat 395010, Tel: 2311197-98, 2311615, Fax: 2311029/502 E-Mail: http://www.gardenvareli.com

CORPORATE OFFICE:
Manek Mahal90,Veer Nariman Road, Church Gate, Mumbai4000020, Tel: (022) 2287 3117-19, Fax :(022) 2204 8112

REGISTER AND TRANSFER:

MCS limited, Nilam Apartment, 88, Samapatrao Colony, Federation building, Alkapuri, Baroda 390 007 Tel: (0265) 2339397, 2314757, Fax: (0265) 23416639

PLANTS:
Vareli complex, Village: Vareli, Ta: Palsana, Dist: Surat 394 327 Tel: (02622) 271241 47 Village: Jolva, Ta: Palsana Dist: Surat 394 305 Tel: (02622) 271287-89

OWNERS AND PROMOTERS DETAIL:

BOARD OF DIRECTORS Praful A. Shah S.J. Bhesania Alok P. Shah Shilpa P. Shah Arunchandra N. Jariwala J.P. Shah Yatish Parekh Madanlal Lakapati Smita J. Shah Sunil S. Shah

AUDITORS Natavarlal Vepari & Co.

BANKERS State Bank Of Patiala Allahabad Bank State Bank Of Saurastra Bank Of India Corporation Bank Union Bank Of India

Vision
We will be a world class organization that enhances value to our customers and other stakeholders by: Caring for employees to work as a motivated team in an open and learning environment. Setting challenging new standards of performance. Focusing on total quality, innovation and responsible care towards the economic scenario and customer requirements.

 Company wants to achieve satisfactory growth and margin with the help of business environment.

Mission
Providing solutions to optimize garments productivity for the dealer/agent through innovative and cost effective products to provide the customer better value for money.

Objectives of the company

Provide customers with prime quality products and services Earn enduring respect of customers and the community. Rank among the top five textile firms and specialty garments supplier in the region. Continually innovate and add value to the existing products and service, and develop new markets in the region

Goals
Fully satisfied management team to operate faster and to achieve higher levels of business and growth effectively Maximum return to share holders. To improve companys position in business To ensure quality at all stages.

TURNOVER:
Year 2009-10 2008-09 2007-08 2006-07 Turnover 2662.33 1384.75 1823.39 1513.42

PRODUCT PROFILE Numbers of products Sales Volume:

1. POY (partially oriented yarn) 2. Textured yarn 3. Draw tax yarn.

1. POY=48,534 tones 2. Textured yarn=16,428 tones 3. Draw tax yarn=9,620 tones 6

4. Fully drawn yarn 5. Draw winder

4. Fully draw yarn=9,800 tones 5. Draw winder=1,655 tones

Product Mix

A product mix is the set of all products and items a particular seller offers for sales.
The garden VARELI have also many kind of product related to POY. But the main product is the POY. This company produces all the type of different goods according to the demand of those goods. The company has the great market after the reliance. The list of some product of the company is as follow: 1. POY (Partially Oriented Yarn) 2. Textured Yarn. 3. Draw Tex Yarn. The garden company also has to produce many of products in fabrics. We show the product mix of the company, hear show the companys product width, length & depth of the product mix. 1. Width: The width of product mix refers to how many different product lines the company carries. The garden company carried four product widths. 2. Length: The length of product mix refers to the total number of items in the mix. The garden company carried 17 lengths. 3. Depth: The depth of a product mix refers to how many variants are offered of each product in the line. The garden company has six depths for each product length. 4. Fully Draw Yarn 5. Draw Winder

Raw Materials
Raw materials for yarn are as follow: Raw materials for grey cloths are as follow: Raw materials for saree and dress materials: DMT+MEDENOL(Chemical) Yarn Grey Cloths

Raw materials for production of sarees and dress materials are produced in company itself at VARELI plant and remaining part of raw materials can be purchase from outside. Company policies for procurement of raw materials is three ways like: 1. Own processing 2. Outside processing(op)and 3. Totally outside processing(osp) Percentage of procurement of raw material are as follows: 1. Own 80% 2. Op 3. Osp 10% 10%

Raw materials like PFY(polyester filament yarn) purchase from outside which are as follows: 1. Reliance industries ltd. 2. Bombay dyeing and also import some raw materials used in production.

Detail of competitors
A competitor means the company which is manufacturing product which is similar to the company means that product can be substitute for the competitor. Garden company has so many competitors in the domestic market. Of these reliance is the biggest competitor which is also number one in POY in India.

Some name of the competitors is as follows:

1. Reliance synthetics 2. Gupta synthetics 3. Indo-Rama synthetics 4. JBF Industries 5. Modern Petrofils 6. Nova Petrochemicals

Name of Industrial Buyers of the Company

The garden company attract their industrial buyers through some medium like money control, ndtv, the companies own site etc. There is no special activity done by the companys marketing department to attract industrial buyers. The company sells its industrial product only limited business, which is deal with the company. And the company sells yarns only fix quantity, which is not use in the company to produce cloth. Hear give the names of some small textile unit, which is purchase yarn for company in current time. No. Buyers 1. 2. 3. Nakoda Textile Industries Ltd. Mohit Textiles Ltd. Prashant textile Person In Charge Badubhai Narayan Saboo Vallabh bhai Product Polyester Chips Polyester Yarn Polyester Yarn

METHOD OF PRODUCTION:
Initially Products are in Raw Material form which has to be converted into Finished Goods. Such a Process of starting to End each of this Process its called Product Manufacturing Cycles. The company follows the product layout for manufacturing process.

ORGANISATIONAL STRUCTURE DEPARTMENTATION:

Departmentation means dividing the large and complex organizational function into smaller administrative units .The term departmentation refers to division of work into 9

various manageable units or departments .It is the method of arranging the activities to facilitate accomplishment of organizational objective.

LIST OF DEPARTMENTS:
Production Department Sales Department Finance Department HR Department

ORGANISATIONAL CHART:

ORGANIZATION CHART:

INTRODUCTION
The institute of personnel management London, U.K., defines personnel management has that part of management concerned with people at work and with their relationship within an organization. Its aim is to bring together and developed into an effective organization of man and woman who make up an enterprise and having regard for the well being of individual and of working groups to enable them to make their contribution to its success. Human resources have very much important in every organization. Human resources are the back bone of industry. The policy of the garden silk mill pvt. Ltd suggest as to get customer satisfaction by providing a very high standard of products by including every employee. Garden company follows the old concept of the human resource like personnel management. The company does all activates of the personnel department and the company has not different department of personnel management but different departmental heads like marketing head, finance head, production head do human resource activities in their department.

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Definition of personnel management:

Human resource management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resource to the end that individual, organizational and social objectives are accomplished.

ACTIVITIES OF HUMAN RESOURCE DEPARTMENT 1. Organization planning 2.Human resource planning Job analysis Job description Job specification 3. Acquisition of human resource Management 4. Managing performance 11. Grievance Procedure ect. 5. Motivational Activities 6. Training and Development 7. Compensation and Benefits 8. Health and Safety Provision 9. Organization Development 10.Encourage Participation in

HUMAN RESOURCE PLANNING MEANING:

Human resource planning is forecasting an organization future demand for and supply of right type of people in right number. It facilitates realization of objective of the company by providing right number of personnel. In garden company Human resource planning is done in following way:

Forecasting the demand of human resources

Forecasting refers to the estimates of the future demand of the employee. This can be done by some analysis. And to do analysis it considers some factors. There are mainly two factors which are as follows:1. External factors. 2. Internal factors. 11

1. EXTERNAL FACTORS
Political, legal, social and the technical changes. The demand for certain categories of employees and skills is also influenced by changes in political, legal and social structure of an economy. In the garden company, it has appointed the technicians and engineers during the last couple of years by taking into consideration the latest technology in construction, software etc. The company considers technology as a doubled-edged weapon. So, as a when the technology changes, the company will also recruit new technicians & engineers to cope with the technology.

Competition.
Garden company is operating in a field where a large number of players are bent while cutting each others throat. In order to stay in a competitive market, the company has to lean by reducing their workforce. The company is planning better workforce as competition has so much increased in the market. On the other hand, the company is doing well and also progressing smoothly so it will always look for people with critical skills.

1. INTERNAL FACTORS Organizational decisions.

In human resource planning, the company undertakes the strategic plan; it takes into consideration the sales and the production forecasts. The company is expecting higher demand of textured yarn and for this, the company has planned long-term plan. Moreover, the company is in search of people possessing requisite skills in next couple of years.

Workforce factors.
The demand for new job occurs because of retrenchments transactions, resignations, deaths and leaves or absence. The garden believes that due to past experience the rate of occurrence of all these actions by employees are partly predictable. Forecasting techniques. 12

The manpower forecasting techniques employed by the garden company are described below 1. Experts forecasting: In the garden company, managers estimate future human resource requirements. Sometimes, the company also appoints the experts to forecast human resources along with the managers experience and judgments which gives the good effect. 2. Trend analysis: The garden company is deciding or forecasting its h.r. needs through projecting past trends. Past rates of change can be projected into the future or employment growth can be estimated by its relationship with a particular index.

LABOUR RELATIONAL ACTIVITIES

Labour relation activities are concerned with relationship with management and worker. In garden silk mills ltd. Labour relations are maintained very nicely. It is important for company to maintain labour relational activities otherwise company cannot come on the position where it is now. Mr. Naised Desai is the leader of the labour union of garden silk mills ltd.

TRADE UNION
Textile industries have two trade unions 1. SURAT silk mills Labour unions. 2. Bombay industrial relations act. Generally the employee of the company is not interested in any of the above mentioned trade unions but if any disputes arises and the matter goes to the court than the employee takes the help of the SURAT silk mills Labour unions.

LABOUR WELFARE MEASURES

Any thing done for the comfort & improvement intellectual & social of the employee over and above wages paid by the company. 1. Canteen facility: It is providing employees the facility of breakfast, lunch and dinner at the reasonable prices.

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2. Rest room: The rest room facility is given to the workers to take rest during the lunch time and even during the free time. 3. Uniforms: The workers are given the uniform which they are supposed to wear during the office hours. 4. Shoes and Raincoats: All the employees and the workers of the company are given the shoes and raincoats during the monsoon. 5. First Aid Facility: It is given for quick remedy of employees, when any accident occurs during the working hours of the organization. 6. Scholarship: Company provides the scholarship to the workers and the employees to those who study for the company as a trainee. 7. Transportation (bus) Facility: The Company also provides the bus facility for the workers from VARELI to BELA mills and even from VARELI to silk mills for the workers. 8. Other Facilities Transport facilities are available for SURAT addressee to all staff and workers and some contractors labour. Gratuity is given for 15 days for each year worked if completed within given time period. Probation is provided for 6 months to experience employees and 1 year to the others. Confirmation letter is issued upon the assessment on completion of probation period. The retirement age of the employees is 58 years. The car policy is provided to the managers and other senior officers of the company on selective basis, the company provided 52% of the total policy and 48% is of self. The increment is provided to the staff in April and to the workers in January. Housing to seniors (top management).

TRAINING AND DEVELOPMENT

Every individual who is selected for the job needs the training. Without getting training it is not easy for the individual to perform the job accurately and the precisely. He should be given at least the basic knowledge with the help of which he can carry out his work. Therefore, training is a must for each and every employee working in organization. 14

Training is the process of increasing the knowledge and organized procedure by which people get knowledge and developed certain skills for 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. It is a never ending process. Training is closely related to education and development but needs to be differentiated from these terms. The garden company gives training to the employees who needs after their work have been examined. And also the training is given to those who are new in the organization. So the company gives training not to all but the few of its employees. The company gives the training for about 1 year. The employees are observed by the senior officers. As per the rule of the government a person has to undergo training at the Indian institute of training. Here he is supposed to do training for 2 years and then with the company apprentice for 1 year. INDUCTION TRAINING Induction means receiving and welcoming the employee when he first join the company and also give the basic information he needed so that he can start his work and aware about companys environment as soon as possible Garden too provides induction. Some reasons for that are as follows:1. Workers become aware of companys environment. 2. The fear can be removed. 3. Workers become aware about the companys rules and regulations. 4. He came to know about the location of various plant and machinery.

NEED FOR TRAINING

To improve knowledge & skill. To develop attitude & behaviour. Reduced cost, accident and mistake. 15

 Increase efficiency To increase productivity Imparting information on new technology and methodology. To maintain industrial relation.

PAY ROLL SYSTEM WAGES AND SALERY STRUCTURE:

Wages represent the hourly rates of pay and salary refers to the monthly rate of pay, irrespective of the number of hours put in by an employee. Wages and salaries are subject to annual increment. The wages differ from employee to employee and it also depends on the nature of the job, seniority and merits. On the other hand we can define salary as the amount of money paid to an employee monthly or yearly. The salary structure is as follows:Temporary employee Probation employee Permanent employee Rs2500 & other incentives Rs3500 & other incentives Rs5000 & other incentives

The government decides the minimum wage payment and as per the law all the companies has to pay the above mentioned minimum wage to its employees

The Pattern of Pay Slip

1. Name and Code of the Employee 2. Slip No. 3. Attendance 4. Leave 5. Absent 6. Pay Days 7. Rate Basic and HRA 8. Provident Fund 9. Employee State Insurance 10. Personal Tax 11. LIC 12. Income Tax 13. Cash Advances 14.Mobile Charges

Two copies of the pay slip are maintained. One is given to the employee and the other is kept by the company for its records. The attendance of the employees is taken every day. 16

The company gives attendance card to each of its employees and makes a register in order to keep records of the employees. When the employee enters into the company he signs in the register and when he leaves again do the same procedure and so in this way, the records are maintained.

Incentives & Motivation System

Incentives are payment plans which provide encouragement by extra payment over and above regular time rated remuneration for the extra performance. To get desired or targeted result, organization can provide extra remuneration for better performance of employees. In other words, an incentive scheme is a plan or programmers to motive individuals or group performance. Garden Silk Mills Ltd. and other company also use certain incentives to motivate its employees. Motivation means to force a person and involve him to complete the work in right time and place with help by providing a basic need or special need to worker. Especially Maslows need hierarchy used to motivate employees such as basic need, special need, safety need, recognize, identify, self realization. Extra salary is one such type of incentive which is given to those employees who show sincerity and regularity throughout the year in their work. Salary is vital factor to motivate employees. Safety need is also used to complete the work.

PROMOTION:
Garden silk mill does the seniority base promotion. The purposes for promotion are mentioned below: 1. To motivate employees to higher productivity 2. To attract and retain the services of qualified and competent people 3. To identify and reward the efficiency of the employees 4. To fill up higher vacancies from within the organization 5. To build loyalty, morale and a sense of belongingness in the employee.

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 TRANSFER
A transfer involves the shifting of an employee from one job to another without any specific reference to changing responsibility and compensation. In garden silk mills transfer is done if it is necessary for the organization. Some time transfer is done to help the employee. While transfer doing the skill of an employee is taking into consideration.

RECRUITMENT Recruitment is the process of searching prospective employee and motivates and
encourages them to apply for a specific job in the organization.

HRP

Determine recruitment and selection

Job analysis

SOURCES OF RECRUITMENT: The garden company is recruiting people by using two methods. They are as follows: Internal methods Indirect methods

INTERNAL METHODS Internal methods means to recruit the employee from with in the company, some internal methods are as follows: Promotions and transfers. Job posting. The company is following the promotion system.As per the industrial act, if a person remains on such rolls for 240 days or more, he will get a status of permanent employee, and he is also entitled to all relevant benefits, including provident fund, retrenchment and compensation.

PROMOTIONS AND TRANSFERS: -

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1. JOB POSTING : Under this, the company publishes job openings on bulletins, boards, electronic media and other similar outlets. The main aim of the company is to use this offers a change to highly qualified applicants working within the company to look for growth opportunities within the company without looking for green pastures outside

INDIRECT METHODS.
The indirect method consists of the advertisements in the newspapers, information written on the notice board of the required employee etc

SELECTION Meaning:
The company can follow this process of the selection. This process diagram can be following hear:

The company normally selects its employee through simple way but company use above process when it needs professional employees who have high qualification. Generally departmental head select the candidates who are suitable in their department but the time of the select professional candidates, the company invited selection committee to selection process. Hear following the steps of the companys selection process.

1. Preliminary interview:
When the application is meet the company can call the suitable applicant to courtesy interview or preliminary interview. And other not suitable applications are rejected.

2. Selection test:
The company can arrange different types of selection tests, which are suitable different category employees for selected applicant in preliminary interview. The company mostly takes attitude test, and personality test. Applicants who are not capable to give these tests are rejected.

3. Employee interview:
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The applicants who are passing in selection test are told to give employee interview or final interview.

4. Reference and background analysis:

After completing employee interview, the company shows the reference of the applicant and qualification criteria. Normally company hires the person who has master degree, which is taken by applicant in south Gujarat University.

5. Selection decision:
When company can finish check the reference and background checking the selection committees decide these applicants is suitable for company or not. If they feel that applicant is not capable for company at that time they reject the applicant.

6. Physical examination:
Normally company cannot do this step but applicants which are related in production department at that time company can check physical capacity of the applicant.

7. Job offer:
In these step, the company can finally offer the job of the applicant.

8. Employment contract
After select the best suitable applicant the company can deal with applicant salary, job timing etc.

Educational Criteria for Selection: For manager & supervisor:

Manager possessing textile or production degree is employed.

For temporary staff:

In the temporary staff level science graduates or diploma in engineering filed are selected.

For labour:
There is no need to any educational criteria for the labour job in this job has experience and skill for the work their wages is given to them according to their daily wage system.

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PERFORMANCE APPRAISAL
Performance appraisal can be defined as the process of systematic, periodic and impartial estimating the value excellence, qualities and thereby evaluating the performance of a person in terms of requirement of the job for which he is employed. The management uses the performance appraisal results for promotion and transfer, identifying training and development needs. Management has established some performance standards upon which the appraisal is done. In the garden company the appraisal is done after every 6 months by the head of the department and the results are conveyed to the respective workers.

Process Of Performance Appraisal:

Preliminary interview:
When the application is meet the company can call the suitable applicant to courtesy interview or preliminary interview. And other not suitable applications are rejected.

Selection test:
The company can arrange different types of selection tests, which are suitable different category employees for selected applicant in preliminary interview. company mostly takes attitude test, and personality test. The

Employee interview:
The applicants who are passing in selection test are told to give employee interview or final interview.

Reference and background analysis:

After completing employee interview, the company shows the reference of the applicant and qualification criteria. Normally company hires the person who has master degree, which is taken by applicant in south Gujarat university.

Selection decision:

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When company can finish check the reference and background checking the selection committees decide these applicants is suitable for company or not. If thy feel that applicant is not capable for company at that time they reject the applicant.

Physical examination:
Normally company cannot do this step but applicants which are related in production department at that time company can check physical capacity of the applicant.

Job offer:
In these step, the company can finally offer the job of the applicant.

Employment contract
After select the best suitable applicant the company can deal with applicant salary, job timing etc.

ORGANIZATION CHART:

ACTIVITIES IN PRODUCTION DEPARTMENT: To take some knowledge about the production activities done in the GARDEN SILK MILLS, We have visited the production plan at the VARELI Village. At that we ask them that which kind of activities they carry out. So, they give us the all the detail of their activity. In VARELI plant they produce POY (Partially Oriented Yarn). As we know that for the production of the goods the Production Department has to depend on the Marketing Department. They produce only those quantities which are demanded by the Marketing people. So, some activities done in the Production Department are as follows:-1. Production manager gathered the information about what to produce and in what quantity. This information must be collected from the Marketing Department. Marketing Department collects information by analysis the market and gives data to Production Department.

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2. After receiving information about in what quantity produce, the production manager now does the arrangement of the raw-material. In Garden the R.M is the POY chips which is made from the D.M.T. and E.G. 3. After doing the arrangement of the R.M. the manager starts the production of POY. 4. When the production getting finished the manager check the quality of the all the POY. 5. After checking the goods they packed it in safe boxes. Then the boxes are kept in warehouses. 6. Then as per the dispatch order given by the Marketing Department the Dispatch Manager dispatch the order and send it by trucks.

Activities In Production Department:

MAINTENANCE PLANNING SYSTEM

Maintenance is very important and necessary. In some company they use corrective maintenance or in some company they do regular maintenance. In GARDEN (VARELI) they use the regular maintenance system. They do maintenance at every week. The maintenance officer checks all the parts of the machinery at every week. And in between if any problem occurs they suddenly try to solve it.

LOGBOOKS/MANPOWER SCHEDULING
The company also maintains the log books in the factory. The attendance of the employees is taken every day. The company gives attendance card to each of its employees and makes a register in order to keep records of the employees. When the employee enters into the company he signs in the register and when he leaves again do the same procedure and so in this way, the records are maintained. Manpower scheduling is depend on the work. The production manager schedules the manpower at time of production. There are total 4 shifts and timing of which are as follows:Shift a 07:00 am to 03:00 pm 23

Shift B 03:00 pm to 11:00 pm Shift C 11:00 pm to 07:00 am General Shift 09:30 am to 06:30 pm The timing for Saturday is 09:30 am to 03:00 pm.

PRODUCT SCHEDULING:
In GARDEN the production plan of POY is made after the data related to sales of POY is given by sales manager or the marketing department. Generally in GARDEN they produce different POY, which is distinguished in to deniers. The sales manager forecast the sales for the coming year on the basis of the previous year sales. They generally forecast 10% more than previous year. The sales manager forecast and then gives that data to production department. The production manager analyzes that data and then estimate in what quantity the rawmaterial needed. After deciding the need of raw-material the production manager informs it to the purchase manager. After it the purchase manager purchases the required material and transfers it to the store room. For e.g.:-- They forecast total demand of POY during the year is 40000 Metric Tons. PLANT LAYOUT It may be defined as the process of setting production activities in motion through the release of work orders and instruction in accordance with previously planned schedules. There are many types of plant layout but Company follows the process layout, which shows below.

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PARKING FOR TWO & FOUR VEHICAL

PRODUCTION DEPARTMENT

QUALITY DEPARTMENT

SPACE FOR THE TRANSPORATION SHOP FINISHED GOODS

ADMINISTRATION DEPARTMENTS INVENTORIES CANTEEN

DIFFERENT RECORDS KEPT IN STORE

1. In flow records of the R.M. 2. Out flow records of the R.M. 3. Comparative records of different parties. 4. Records related to daily stock of R.M. DAILY REPORTS: 1. Reporting of daily raw materials. 2. Workers performance of the day. 3. Workers time paid at workstation. 4. Machine production report 5. Waste Report 6. Machine Efficiency Report

MATERIAL HANDLING EQUIPMENTS: It may be defined as the equipment which control the internal movement of materials
from receipt through storage and production up to the final shipment of finish products Material handling equipments are very useful in the big company. This equipment is widely used in company. In GARDEN they use those types of equipments, which are helpful to them in the safe movement of their material.

Some equipment is as follows:-

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1. Pipelines 2. Trolleys 3. Fork Lifts 4. Pallets

5. Hydraulic Machines 6. Plastic Bags 7. Boxes

1. PIPELINES

Pipelines are the very important part in the manufacturing company. It is very useful for the flow of the water, gas, air, chemical, and raw-material. In GARDEN they also use the pipelines for such kind of use. They mainly use pipelines for the flow of R.M. in the production process. They also use pipelines for the flow of air and liquid material.

2. TROLLEYS

Trolleys are mainly use for the transfer of goods from one place to another place. We also use trolley at our home. In this way it is also used at the company. 26

In GARDEN they also use such kind of trolley. This trolley is use for the transfer of POY bobbin from one place to another. The trolley capacity is 24-36 rolls. In GARDEN they have approximately 900 to 1000 trolleys. As shown in the image the POY bobbins are kept in the stand which is fitted on the trolley.

2. FORK LIFTS.

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3. PALLETS

Pallets are also very useful equipments. This is useful to carry the jumbo box on it. As we know that jumbo box cant be handling manually, so these pallets are use. Pallets are made of plastic & wood. We can see the image of pallets. In the 1st image we can see different size of pallets and in the 2 nd image we can see how the boxes are kept on pallets. These pallets are handled with the help of Fork lifts. The supplies of box are done on pallets. Once the buyer Gets his order he gives back these pallets to the company. In GARDEN they use the pallets made of wood.

5. HYDRAULIC MACHINES.

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This machines capacity is about 2000-3000 kgs. This equipment is used to carry the jumbo boxes. The jumbo boxes cant be carried manually, so because of that this kind of equipment is being used. It helps to make the dispatch of finished goods faster. There are also some other things that can be used for material handling. These we cant say the equipment but it helps a lot to save the goods. These are as follows. 1. Plastic Bags. 2. Boxes.

ORGANISATIONAL STRUCTURE

THE MARKETING CONCEPT: FOCUS MEANS OBJECTIVES

Products to fill in customer needs something

Profits through customer satisfaction

Integrated marketing mix

LOCATIONS FOR MARKETING: Garden Silk Mills Pvt. Ltd. is having its marketing offices at different places like in Surat, Mumbai, Delhi, and Ahmedabad.

RESPONSIBILITY:
They are responsible to satisfy the customer requirement by adopting better quality of product. They are directly responsible to the general manager and the proprietor in-charge. 29

 They are responsible to increase the volume of sales. They are responsible from inquiry of goods & its delivery to their customer. They are responsible for the proportion of discount policy. They are responsible for checking the account of customer. They are responsible for attracting new customer for their product. They are responsible to give the best advertisement in different media through which attracting number of customers.

TYPES AND CLASSIFICATION OF PRODUCT:Product classification means differentiation between the products. The GARDEN JOLWA have also many kind of product related to POY. But the main product is the POY. This company produces all the type of different goods according to the demand of those goods. This company has the great market after the RELIANCE.

VARIETY OF PRODUCTS:

POLYESTER CHIPS

30

PLOYESTER YARNS

FABRICS AND DUPATTA

31

DRESS MATERIALS

COTTON SAREES 32

GEORGETTE

SILK

SAREE

PATORA

JAQUARED

BRASSO

CHIFFON

PRINTED

33

UNIQUE FEATURES OF VARIOUS PRODUCTS

1. POY. (PARTIALLY ORIENTED YARN) This is the one kind of yarn. Or we can say that one kind of RM to make the textured yarn from it. This POY directly cant be used in power looms or we can say to make fabric. 2. TEXTURED YARN This is the one kind of yarn which is made from the POY. To make this yarn we have to do some twist in POY by using twisting machine. As the name says it is directly used in the textile unit. Textured yarn is of two types first is the S and second is the Z quality.

1. FULLY DRAWN YARN

This is also one kind of yarn which is also made from the POY. This yarn is the highly flexible. It can be directly use in the power looms. This yarn is very expensive and it is useful for the water jet looms or the very costly power looms.

2. DRAW TEX YARN

This yarn is the first stage of the textured yarn. This yarn is in low quality then textured yarn.

RECORDS OF CUSTOMER BASE

Garden company has 68 dealers, 18 company owned depots, and 293 retail outlets in India to which it sale its products. Code no. Is given to each and every customers, telephone/fax no. E-mail, person to be contacted. Garden company also maintain the file for each and every customer and copy of any correspondence exchanged between the customers by any 34

branch office are available in said file for reference i.e. whenever office is corresponding with the customers, a copy of same will be forwarded to the respective branch office.

SYSTEM OF APPROACHING CUSTOMER Advertisement and promotion policies:Advertising can be used to build up a long term image for product. The sales of a product can be increased to a great extent with the help of advertisement. But, usually advertisement is done for the consumer products. But GARDEN is mainly dealing with yarn, a raw material for fabric. They usually deal with dealers so there is no need for any kind of ads, as it is an industrial product. Advertising offers a reason to buy and sales promotion offers an incentive to buy. Promotion is nowadays more accepted by top management as an effective sales tool. The companies are under great pressure to increase their sales as numbers of competitors are also increasing. The industrial products manufacturing also do more or less promotional activities. The company always tries to promote the product in the way by which the price of the product is tried to maintain or reduce and the quality is improved so that they can offer better product to their customers. They also do trade promotions like giving free yarn samples and prices off. BUDGET FOR ADVERTISEMENT: Every organization decides their amount or budget for advertising in advance. But it isnt possible in every situation. Sometimes company may not be in a position to decide, budget for advertising in advance due to certain reasons. Previously Garden Silk had fixed budget for advertisement. In the year 1993-94, the company provided Rs. 8, 69,000 as expenditure of advertisement, while in the year of 1994-95, the company has provided Rs.14, 52,000 as expenditure of advertising. But at present it is not fixed.

MEDIA FOR ADVERTISEMENT: Media is a means through which advertisement passes to consumers & by which consumer knows about product & its features. Garden uses different media for advertisement like daillies, textile-magazines, seminars, demonstration, Internet & other 35

business magazines. Thus, Garden, does not more emphasizes on advertising because it produces industrial goods & its a long term buying decision & there is no regular customer for industrial goods.

PROMOTION POLICIES: Sales promotion is termed as, The Promotional Activities other than personalsalesmanship, advertising, publicity, which stimulate consumer purchasing & dealer effectiveness such as displays, exhibitions, demonstrations, contest & various other nonrecurrent selling effort not in the ordinary routine.The difference between sales promotion and advertisement is that advertising offers the reason to buy while sales promotion offers an impulse to buy. In Garden, there is long term planning for the sale of its product. Garden has slogans You fascinate me and Garden creates new woman which are impressive & attracts women consumers. THERE ARE THREE TYPES OF SALES PROMOTIONAL TOOLS: Consumer promotional tools Trade promotional tools Business and sales force promotional tools.

1. CONSUMER PROMOTION TOOLS: SAMPLES: Samples are offered to its retailers, i.e. in terms of returning the sarees with its particular design not liked by the retailer or wholesaler. This is in the case of marketing of sarees only.

FREE GOODS: To pace with volatile taste and preference of the consumer the company has to know the current consumer market. Hence, a questionnaire is prepared including the customers choices and market demand with options for answers. If the questionnaire is completely filled up and submitted by the customer, she will get one scarf free. On the basis of response and analysis of the data, the management decides to change its product.

36

 PREMIUM (GIFT): The customer who buys direct from the companys shop is given impulses by offering them free premiums or gifts. On buying products up to Rs. 1500/-, buyer gets 2.5 mts. fabrics in the form of topbottom clothes. 2) On buying products up to Rs. 3000/-, buyer gets 5 mts. fabrics in the form of top and bottom clothes. 3) On buying products up to Rs. 4000/-, buyer gets complete Duptta set, which consist of a complete dress for her. Thus the scheme is very effective.

DISCOUNT: Usually, quantitative discount is given to its retailers to infatuate and vigour to buy the product of the company.

1. TRADE PROMOTION TOOLS: BUYBACK GUARANTEE: The company also gives full buyback guarantee to its retailers or wholesalers, i.e. defected goods are purchased back by the company. PRICE OFF: The company often has to offer price off to its retailers or wholesalers to carry a particular brand. The company offers price off in terms of discount on the basis of amount of sales of retailers sale in more than current month then management give more discount to retailer or wholesaler.

1. BUSINESS AND SALES FORCE PROMOTION TOOLS: These tools are used to overhaul the business, sway customers and motivate sales force to greater efforts.

2. Trade show: -

37

The company takes part in the annual trade show organized by the Textile Industry Association in Delhi every year. Apart from it, the company also organizes a show named as, Text Style which is a sort of fashion only for the products of the company.

All activities of marketing department:Marketing department main activities is finish goods to promote its and then sales in the market. Finished product + promote = sold Procurement of product there are three ways of procurement 1. own process units (OWN) 2. outside processing (O.P) 3. totally outside purchase (OSP) (FINISHED GOODS PURCHASE) PERCENTAGE OF PROCUREMENT:OWN = 80% O.P = 10% OSP = 10%

PRODUCT:Sarees Skd (skirt, kurta, and dupatta) Ladies top Then sales division works starts. In marketing people work for allocation of goods e.g. where goods available, giving invoice transports. In short activities like order collection and allocation of goods, promotion of goods etc. work can be done and sold and getting feedback from customers. 1. Order collection 2. Allocation of goods 1. ORDER COLLECTION: Parties send orders or design to company & give order. 38 3. Promotion of goods 4. Sales of the goods Dress Suiting and shirting

 Own design send in operation and then sale product in market. Company send sample to other and get order Direct decide. And to show goods send to customer as per order or not. Generally end user can not deal with the company.

PRICING POLICY.
Price shows the value of the companys product. The company itself decides its product price considering various factors. The price of GARDEN Company is less than the Reliance and which is the second highest price in the market. These two competitors play a major role in the market according to their price of the products Pricing is just not a number on a tag or an item. It represents the product in a very large way.Pricing policy of the company usually stable, it does not keep on fluctuating with time and the price is decided after taking into consideration the price of its competitors. According to the company the price of the finished product is decided on the basis of the price of its raw material. Say for example if the demand of petroleum is increased or decreased then it consequently affects the price of the raw material and also the price at times depends on the demand of the product also. The price of the company changes, when the yarn market is in boom period the price tend to be high and vice-versa. The Garden Company follows this pricing policy, which is show here. PRICE=COST+MAGIN+BRAND EQUITY This Criterion is called forward pricing. However, In Cutthroat Competition, Garden has Adopted Backward pricing, I.E. First of all, they determine the Price at which it can be sold having deducted the required margin from the basis of which it achieves the cost. Then it strives to reach the determined cost. It assists the company in Effective cost control in reducing Wastage. For Wholesome Customer, There are two types of discount. That is trade discount and cash discount. Garden has motivating discounting policy rather than threatening one. a) To Pay the bills in 30 days or to pay 2% interest after due date. 39

b) To pay the bill at last in 60 days and if you pay bill a month early you will get 2% discount.

Generally, the payment period of Row material as well as credit period for finished products is 60 days due to competitive Market However, It is not Rigid; It Changes As per the Demand-Supply position of the market of a particular product

BRANDS AVAILABLE AND COMPARATIVE PRICE: SAREES:Nara chiffons Linters Welensia DRESS MATERIAL: Alphinorio Prima Rs. 54 to Rs. 55/meter Rs. 75/meter Rs. 64 to 67/ meter Rs. 59/meter Rs. 70/meter

Comparative price: - (pricing strategy) Cost + fixed percentage = price STAMPING: Garden Brand name Combination of ingredients Combination like cotton 100 % or 100% polyester Made from filament by filament Register office address Sample + design sticker

CUSTOMER SATISFACTION MEASURES AND IMPORTANCE OF CUSTOMER FEEDBACK:Sales repurchase, separate end user touch Organizers ask and get feedback What they required Every month feedback 40

All dealers reports get feedback

SALES PROCEDURE
Sales procedure of each company differs from one another. Garden follows short length sales procedure as it constitutes only 1 middleman All the sales of the products of the company are done only by the dealers only as they know the requirements of the customers. He negotiates with the customers and he gets all the information regarding the price which the customers are ready to pay and the total they want. In short, the dealer gives the complete information to the sales manager of the company about the customers. Following details are given by the dealers to the sales officer:1. Customer name 2. Quantity required 3. Quality required 4. Aggregate price The sales manager studies the details given by the dealer and if he is satisfied with the requirements of the customer and the price offered by him, then the procedure will start. The officer gives the reply to the dealers and the dealers ultimately give to the customers. The meeting is called of managers of all the departments and the opinion of each of them is taken into consideration and then the necessary changes in the side of the majority are taken. And whatsoever has been the decision, the sales manager will convey it to all the dealers. The procedure comes to end with the payment of the delivered goods and the customer has to give full payment and there is no policy of paying partly. The company follows its rule of payment and it does not change for any of its customers.

DOCUMENT RELATED WITH SALES

Each and every company has its own documents as per their business activities. Document is an organ which acts as a proof for both seller and buyer. It is a signed paper or an instrument which shows that the goods are dispatched from godown of the company that is the seller has sold his products and the buyer has received his order as per his requirement. Various documents indicate that the transaction has already done. The main documents of the company are Challan and Invoice. These two documents contain 41

various details like the customer name, price of the product, quality of the product etc. Other documents are packing lists, sales book, order book, etc. and all these have their own uses.

FORECASTING AND SALES PLAN PREPARATION:One major reason for undertaking marketing research is to identify market opportunities. Once the research is complete, the company must measure and forecast the size, growth, and profit potential of each market opportunity. Sales forecast are used by finance to raise the needed cash for investment and operations; by manufacturing department to establish capacity and output levels; by purchasing to acquire the right amount of supplies; and by human resources to hire the needed number of workers. In short, marketing is responsible for preparing the sales forecast Forecasting helps to come to near actual figures but it does not necessarily show the real position of the company. So for this purpose the experts are appointed. There are many different products whose forecasting is done by the company. Here the sales forecasting is done on the basis of previous month or previous year sales. The market for synthetic yarn is a seasonal and ultimately it depends on the price of the raw materials which again depends on the price of the petroleum products. The price is controlled by the international pricing policy. The company also uses various statistical records which are studied by the managers and the experts of the company. Forecasting is even affected by the seasons, festivals & their respective months when compared to previous figures.

DIFFERENT DEPARTMENT

REPORTS

GENERATED

IN

MARKETING

There are Different Types of Reports made by The Company during its Financial Year. GARDEN SILK MILLS Reports are as Follows : (a) Individual Product Report (b) Fluctuation Report. 42

(c) Product Wise and Dealer Wise Sale Report. (d) Denier Wise / Dealer Wise Lifting Pattern or Sales Pattern Report. (e) Yearly Product Wise Sales and Turnover Report

ORDER PPROCESSING SYSTEM AND CO-ORDINATION WITH PRODUCTION AND DISPATCH

1. Production manager gathered the information about what to produce and in what quantity. This information must be collected from the Marketing Department. Marketing Department collects information by analysis the market and gives data to Production Department. 2. After receiving information about in what quantity produce, the production manager now does the arrangement of the raw-material. In Garden the R.M is the POY chips which is made from the D.M.T. and E.G. 3. The production manager informs to the purchase manager about the need of the Raw Material, some machinery and equipment etc. 4. The purchase manager receives the data and checks whether the demand is right or wrong. 5. After checking the quality and quantity required by production manager, the purchase manager will do inquiry about the potential suppliers. 6. After finding the supplier the purchase manager will send him an inquiry letter and ask for quotation. 7. In response to the letter the supplier will also give letter related to the price of the goods and other condition. 8. After receiving the letter the manager will compare the quotation of the entire supplier. They will compare the quotation in respect to the unit price of goods, credit policy, and other terms & condition of the supplier. 9. After comparison they finalize the best supplier and then the manager personally checks product quality and if he is satisfies then he places order. 10. After giving order, supplier will supply the raw material as per order. 11. After doing the arrangement of the R.M. the manager starts the production of POY.

43

12. When the production getting finished the manager check the quality of the all the POY. 13. After checking the goods they packed it in safe boxes. Then the boxes are kept in warehouses. 14. Then as per the dispatch order given by the Marketing Department the Dispatch Manager dispatch the order and send it by trucks. COLLECTION OF RECEIVABLES Cashier will take cash from agents and enter related data in the register and issue a counter slip to agent. Recovery department keep watch on cash flow for every agent and in cash of credits more than the deposit of agent, the supply will be stopped immediately with information. A detail statement of accounts for garden silk products supply and cash deposits with trade discount is being issued at the end of the month.

ORGANISATIONAL STRUCTURE

INTRODUCTION Finance is that administrative area or set of administrative function in an organization which relates the arrangement of cash and credit so that organization may have the means to carry out its objects as satisfactory as possible. In the garden company, there are separate department of accounting department & financial department. The companys financial position in the textile industry is very strong so that we said that the companys finance department is very strong. Hear show the structure of finance department.

RELATIONSHIP WITH OTHER DEPARTMENTS MARKETING DEPARTMENT:

44

The job of marketing department is to boost up the sales and increases the profit of the company. Therefore it is essential for marketing department because to continue with any department one surely needs finance. The main function of marketing is to explore and research the market so that the company can developed itself. Finance is also required to train the marketing staff to perform its function properly. Development and maintenance of new or existing product or services require to finance is also required to train the marketing staff to perform its function properly .development and maintenance of new and existing product or services require finance. It assist marketing in promoting the product moreover it also help in fixing competitive price of the product. In todays competitive market it become unavoidable to ignore finance, through finance proves to be base for marketing they are interrelated with each other by pricing. In this company finance assist marketing activities by providing incentive scheme, free gifts literature, etc ,for promotional activities .It is useful in exploring and marketing a place in competitive market .The companies distributors have to bare the major marketing expenses as they are given the responsibility of marketing(promotion).

PRODUCTION DEPARTMENT:
Production and finance department are interrelated with each other .finance is required for the production activities of the firm. It is required to keep the cost in control so that finance is used economically and judiciously. Main function of finance department is minimizing cost of production. Production and finance department are to make decision whether to buy or make a product. To increase product lines also finance is required. The company requires finance for setting up plant, buying machineries and equipment, capital expenditure, etc. The company also made finance for day-to-day expenses like operating expenses, and variable expenses.

PERSONAL DEPARTMENT
Personnel department is always heavily dependent on finance department .finance department requires personnel along with computerized system to run department harmoniously.

45

Even though there may be computerized system but personnel are required to manage this systems. In this company very little amount of finance functions are undertaken so the requirement of personnel departments limited to an excellent but finance is required pay the personnel of the company. Hence we can say that personnel and finance departments are interrelated with each other.

COSTING/COMPUTERIZED SYSTEM OF ACCOUNTS

As finance department in GARDEN SILK MILLS ltd. With various transactions of finance .it always maintains computerized system of accounts tally0.5 software is used in finance departments and mercantile is used in accounting .They maintained this system of accounting because it also helpful in forecasting the cost ,expenses, income, etc. Moreover, maintain manual accounts are much time consuming and may lead to inaccurate result. The company has prepared their own costume made software for billing and other purpose. This software specially designs for the firm according to the requirement of the firm.

SOURCES OF FUNDS
There are two types of sources of working capital, like long term and short term fund, which show here:

LONG TERM FUND

1. Issue of Share 2. Loan 3. Debentures 4. Commercial Papers 2. External 2) Taxation Provision 4) Debtors a) Security of employees b) Loans from directors 3) Accrued expenses

SHORT- TERM FUND

1. Internal

1. INTERNAL
1) Depreciation

1. EXTERNAL
1) Trade credit 2) Credit paper 3) Raw material

46

The garden company also uses this source of working capital for their production. The company use these sources to gain fund, which is following hear. Debtors: The Company uses these sours of the working capital. The company gets long fund for its customer. The company sells its product to customer for one month credit. Raw material: The Company sells its raw material, which is not use in the fabrics and get lot of fund for its working capital.

CAPITAL BUDGETING
Capital budgeting is concerned with the allocation of the firms scare financial resources among the available market opportunities. The consideration of investment opportunities involves the comparison of the expected future streams of earnings from a project, with the immediate and subsequent streams of expenditure for it. Garden silk mills ltd. follows its own technique of selecting a project and also the company follows the following step: The company always sees in the project that how it is useful to the company is always looking for new technologies. Analyze the cost of the machines and negotiate for the same. The structure required for the machinery to be installed i.e. Area required for the plant to be installed Accordingly workout the cost of the land and factory shed with the prevailing market price of land. Calculated the cost of other machineries and assets required in the new project. Lastly even contingencies are taken into consideration. Calculate the cost of the above to know the total cost of the new project. Then garden mills keep 33.33% margin with it of the total cost and remaining i.e.:66.67% is raised by the banks and other financial institution. 47

WORKING CAPITAL MANAGEMENT INTRODUCTION

Working capital is one of the most fundamental measures of companys financial strength. If company possesses a significant value of liquid assets, it can easily fund its day-to-day business obligation. Working capital also provides insight on how efficiently a companys management able to oversee the company operation. The speed at which the company is able to manage its short term assets and short term liabilities is also crucial to its business success. Keeping working capital level to the minimum required for efficient operation keeps cost down. This means controlling buying, handling, storing, and managing stock property. In simple terms, working capital refers to the cash a company. Requires in order to finance its day-to-day business operation or in other words, working capital refers to the amount of capital which is readily available to an organization. The term working capital is more an accounting term a management concept. There are two concept of working capital for the purpose of definition gross concept and net concept. Gross concept refers to firms current assets. The firms total current assets are termed as gross working capital. Net concept refers to current assets less current liabilities. That means, working capital is difference between resources in cash or readily convertible into cash (current assets) and organizational commitment for which cash will soon be required (current liabilities). TRADE WORK- INFINISHING SALE CURRENT ASSETS CYCLE RAW MATERIAL &COMPONENTS TRADE CREDITOR CASH DEBTORS PRODUCTS PROGRESS S

48

Working capital = current assets current liabilities

SOURCES OF WORKING CAPITAL

Sources of Working Capital

Long term

Short term

Internal Issue of Share Floating of Debenture Ploughing back of profit Loan 49

External

Trade Credit Credit Paper

Customer Credit Govt. Assistance Loans from Directors 7. Security of Employees Depreciation Taxation Provision Accrued Expenses

50

INVENTORY MANAGEMENT
For many business firms, inventory is one of the visible and tangible of doing business. Raw materials, work in process and finished goods all represent various form of inventory. In simple words, inventory refers to stocks of good necessary to do business. In fact, for a business firm, inventory is both an assets and a liability. Too much inventory consumes physical space, causes of financial burden, and increasing the possibility of damage, spoilage and loss. On the other hand, too little inventory disrupts manufacturing operations, engenders chaos on the shop floor, poor customer service.

NEED TO HOLD INVENTORY

Business firm keep inventory for different purpose. Every firm, big of small, trading of manufacturing has to maintain some minimum level of inventories. Garden maintains round about more than 8 Crores inventories.

TRANSACTION MOTIVE:Every firm has to maintain some level of inventories to meet the day to day requirement of sales, production process, customer demand etc. The inventory level will provide a smoothness to the operation of the firm.

PRECAUTIONARY MOTIVE:A firm should keep some inventory for unforeseen circumstances also. For example, supply of raw material may not reach due to strike by the transporters.

SPECULATIVE MOTIVE:The firm may be tempted to keep some inventory in order to capitalize an opportunity to make profit.

MANAGEMENT OF RECEIVABLES
The accounts receivables are generated which are collected at a future date only when the firm grants credit against an ordinary sale of goods or services without receiving cash. Credit sale is an essential part of the present competitive economic system. It is granted in order to increase the volume of sales. As such receivables which are created out of 51

credit sales are considered as a marketing tool for increasing sales. But extension of credit involves cost of risk. Therefore, management should weigh the benefits against cost. As such, the objective of receivables management is to promote sales and profit until optimum point is reached. Receivables are created out of trade credit and which are collected in the near future. The debtors have got the three distinct characteristics. It involves risk which should carefully be studied since cash sales are risk less whereas at the time of credit sales, cash is yet to be received. It is based on present economic value of goods passes immediately, whereas, the seller expects an equivalent benefit at a later date. It implies futurity. The value of goods or services received by the buyer will be payable by him at a future date. No doubt, receivables play a significant role in the total current assets composition since their position is next to inventories. In India, they form about one third of total current assets.

CREDIT POLICY: A firms investment in accounts receivable depends on the volume of credit sales and the collection period. There is one way in which the financial manager can affect the volume of credit sales and collection period and consequently, investment in account receivables. That is through the changes in credit policy. The term credit policy is used to refer to the combination of three decision variables: (I)) Credit Standards, (ii) Credit Terms, and (iii) Collection efforts, on which the financial manager has influence. Credit Standards are criteria to decide the types of customers to whom goods could be sold on credit. If a firm has more slow-paying customers, its investment in accounts receivables will increase. The firm will also be exposed to higher risk of default. Credit Terms specify duration of credit and terms of payment by customers. Investment in account receivables will be high if customers are allowed extended time period for making payments.

52

Collection Efforts determine the actual collection period. The lower the collection period, the lower the investment in accounts receivable and vice versa.

MIS REPORT GENERATION

MIS stands for two for two things that are marketing information system and marketing intelligence system. All the companies try and collect as much information as they can from market. Marketing strategies of other competitive companies are studied and analyzed by the company. Marketing departments also collect information from internal sources like reports on order, sales price ,cost , inventory level, receivables, payables, etc. order to payment cycle is considered as the heart of internal record system. Company is very useful about timely delivery of the products .companys sales executives and medical representative plan tour and explores undiscovered area. Company studies the buyers wants and needs, preference, behaviours and consumption pattern of their customer to promote their products much better. The company which has the most accurate information of the market has the upper hand of its competitors and may developed their place much better in the market. Thus by getting accurate information a company can prepare a good marketing information system report.

INTERNAL AUDIT POLICES & FINANCE CONTROL SYSTEM

The company has appropriate internal control systems for business processes, with regards to efficiency of operations, financial reporting, compliance with applicable laws and regulations etc Roles and responsibility down the line for all managerial positions have been clearly defined. All operating and financial parameters are monitored and controlled. Regular internal audits and checks are conducted. The audit committee of Board of Directors reviews the adequacy and effectiveness of internal control systems and suggests improvement for strengthening them, from time to time. The company has implemented an Enterprise Resource Planning (ERP) Oracle Applications, 11i e-business Suite across the company. This will improve controls making then process driven rather than individual driven. It will allow for the highest data integrity with an audit trail. It will allow for enable integration of all systems. At 53

present, the company is using (I) Sale/Order Management (II) Production (II) Sale (III) Inventory (IV) Purchase (V) HRMS (VI) Financial modules in its Oracle 11i e-business suite. The entire organizations will work on one set of information. Speed of information flow will also be substantially increased.

COST STRUCTURE & COST SHEET DEFINITION:

The expenses that a firm must take into account when manufacturing a product or providing a service types of cost structures include transaction costs, sunk costs, marginal costs and fixed costs. The cost structure of the firm is the ratio of fixed cost to variable cost. The cost structure of a firm is the relationship between its costs and the level of output (quantity) it can produce and sell Economic theory is about the generic features of the firms cost structure, not specifics related to a particular firm The firms cost structure depends on the technology available (its production function) and the prices it pays for factors of production We assume a competitive firm that can obtain as much of any variable factor that it wants at a given price per unit. Economic cost represents the opportunity cost of producing the firms output Opportunity cost is the value that the factors used by the firm would have earned in their best alternative uses Economic costs can differ from accounting and historical (sunk) costs Sunk costs (costs which the firm is stuck with regardless of anything it does) are not economic costs

THE FIRMS SHORT-RUN COST STRUCTURE

A firms short-run cost structure reflects its variable costs and its fixed costs Variable cost (VC) is the cost of the firms variable factors (labour, materials) and depends on the level of output

54

 Fixed cost (F) is the cost of the firms fixed factors (capital, land) and is the same regardless of the level of output Total cost (C) is the sum of variable cost (VC) and fixed cost (F), or C= V.C + F.C

COST SHEET:
Particular Operating income Other income Profit before interest, depreciation and tax Less: Interest &Finance charges(Net) Depreciation Profit before tax Less: provision for tax Profit after tax Add: balance b/f from previous year Transfer from debenture Redemption reserve Balance available for appropriation General reserve Proposed dividend Tax on dividend Balance carried for balance sheet 31st march 2010 2514.89 6.41 238.82 73.17 72.56 63.21 29.88 63.21 0.00 193.23 4.75 6.89 1.15 180.44 193.23

BALANCE SHEET AS AT 31ST MARCH 2010

(Rs. in lakhs)

55

As at SOURCES OF FUNDS 31/03/2010

As at 31/03/2009

56

Shareholders fund: Share capital Reserves and surplus 3829.06 45199.97 49029.03 Loan funds: Secured loans Unsecured loans 94857.36 7934.56 102791.92 Deferred tax liability TOTAL Application of funds: Fixed assets Investments Current assets, loans and advances Inventory Sundry debtors Cash and bank balances Loans and advances 36,536.20 12,686.88 3,480.63 22,028.67 74,732.38 Less: current liability and provision Current liabilities Provisions 27,479.45 5,602.56 33,082.01 Net current assets Miscellaneous expenditure 41,650.37 6.75 12,006.39 3,875.98 15,882.37 40,191.05 20.48 21,755.11 6,747.31 7,287.86 20,283.14 56,073.42 114,261.64 7,660.96 98,883.64 5,157.77 11758.77 163,579.72 83809.02 8566.44 90375.46 10365.21 144,252.94 3829.06 39683.21 43512.27

TOTAL 57

163,579.72

144,252.94

PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31st MARCH, 2010 (Rs. In lakhs) Particular INCOME
Sales and Job Charges 266,233.59 138,475.35

31st March 2010

31st March 2009

Less: Excise Duty on Sales Net Sales and Job Charges Other Income

14,744.18 251,489.41 641.42

5,314.52 133,160.83 705.66

252,130.8 3 EXPENDITURE
Consumption of Raw Materials Purchases (Increase) / Decrease in Stocks Manufacturing and Other Expenses 192,804.92 1,408.82 (5,990.13) 40,024.97

133,866.49

92,990.89 1,099.62 (787.94) 24,382.86

228,248.5 8 Profit Before Interest, Depreciation And Tax

Less: Interest and Finance Charges (Net) 23,882.25

117,685.43
16,181.06

7,316.98

4,698.15

58

Profit before Depreciation and Tax

Less: Depreciation

16,565.27 7,256.39 9,308.88

11,482.91 4,483.60 6,999.31

Profit Before Tax

Less: Provision for Current Tax

1,594.85

762.15

Provision for Deferred Tax

1,393.56

1,233. 69

Provision for Fringe Benefit Tax

0.00

45.00

Add: Balance brought forward from Previous year Add: Transferred from Debenture Redemption Reserve

13,002.34

7,850.84

0.00 1,

1,125.00

Amount Available for Appropriations

19,322.81

13,934.31

APPROPRIATIONS

General Reserve

475.00

260.00

Proposed Dividend

689.23

574.36

Tax on Dividend

114.48

97.61

Balance carried to Balance Sheet

18,044.10

13,002.34

59

19,322.81

13,934.31

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PURCHASE/STORED DEPARTMENT/MATERIAL MANAGEMENT INTRODUCTION TO PURCHASE DEPARTMENT

In a narrow sense the purchasing means going the open market, finding the lowest price at which a standard items are offered and selecting a supplier who is at that price .But in a broad sense purchasing is much more than that . It can be define as art and science.

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PURCHASE PROCEDURE
Purchase procedure is a very important part in the big company. For production they need R.M. and to purchase the R.M and other item there is a special purchase procedure that all the company follows In GARDEN there is also a separate purchase department who always take care about the purchase decision in the company.

ACTIVITY DONE BY PURCHASE DEPARTMENT

Purchase of R.M Purchase of chemicals like spin-finished oil, Lubricants etc Purchase of new imported material. Purchase of capital goods. Purchase of new machinery. The purchase procedure starts when the need of purchase arises

STEPS IN PURCHASE PROCESS

The production manager informs to the purchase manager about the need of the Raw Material, some machinery and equipment etc. The purchase manager receives the data and checks whether the demand is right or wrong. After checking the quality and quantity required by production manager, the purchase manager will do inquiry about the potential suppliers. After finding the supplier the purchase manager will send him an inquiry letter and ask for quotation. In response to the letter the supplier will also give letter related to the price of the goods and other condition. After receiving the letter the manager will compare the quotation of the entire supplier. They will compare the quotation in respect to the unit price of goods, credit policy, and other terms & condition of the supplier. 62

 After comparison they finalize the best supplier and then the manager personally checks product quality and if he is satisfies then he places order. After giving order, supplier has to supply it within the given time-period. So, above are some steps which are generally followed by the purchase manager of the company to purchase Raw Materials, other equipments etc.

INTRODUCTION TO STORE DEPARTMENT

Store department plays important part in any organization .it is a place where all the products or goods of the firm being kept. The main advantage of store department is that the firm can get the necessary raw materials as well as product whenever they needed .All the products are kept separately according to their characteristics.

ACTIVITIES IN STORE DEPARTMENT

Storing raw material and finished goods. Provide raw material, goods, and equipments whenever needed. Maintain bin card. Prepare indent letters. Keeping records of material used, purchased and current stock.

STORING PROCEDURE
When new purchase of raw materials are done they are send to store division, store in charge will verify the quantity received and another person from concerned department checks the received stock .Entry of quantity received is made on bin card and products are stored . Finished goods store directly from production department and finished stocks send to store. About the quantity received on one day the same is entered by store in charge with date and time.

DISTRIBUTION NETWORK
There is usually a large channel of distribution which includes from producing a product to sell it to wholesalers and the wholesalers give it to the retailers and finally retailers sell it to consumers. This distribution network is for the consumer products. The main 63

product of the company is POY which is the industrial product and the distribution network of the company is very simple and it is not so complex. In this network there is only one person who is known as DEALER in between the producer and the customer. The company mainly deals with the dealer. The dealer sells the product to the industrial customer and he mainly acts as a guarantee on behalf of the customer for the payment to the company. The sales manager personally does not know any of his customers but he just knows the name of their firms who consumes his product. Thus, we can say that the dealer has a very important role to play here. Packing department

Dealer Spot sales

Depots

General shop Authorized retail shop Authorized retail counter Company shop

Consumers

PRODUCER

DEALER

CUSTOMER

The company sells their product by dealers only. The dealers get the commission by the company and also from the customer. The GARDEN Company has their dealers in all the state. They have approx 100 dealers. The dealers network is in Gujarat, Maharashtra, Rajasthan etc

Some names of dealers are as follows: 64

1. Gheewala brothers. 2. Ekta Textiles. 3. Amidhara Textiles.

PROCUREMENT OF RAW MATERIALS

Company contact with its suppliers through dealers. They use telephone or fax as a media and first supplier send quotations and then purchase orders are given. They send raw material by transport facilities through truck, ships, etc.

PROCESSING PF MATERIALS
After receiving the material from the suppliers it is kept in store house. As per the requirements, it uses the raw materials for the production process. When raw materials are processed for producing finished goods, it can be said that it is Work-In-Progress. When production process of making chips and yarn or clothes are finished they are known as finished product then after it is kept in store house and as per the order, they send the goods to the dealer.

MAINTANANCE OF SUPPLIER DATABASE:

Garden silk mills ltd. maintains the database. They consider following things: 1) Supplier Name 2) Delivery order no. & Date 3) Mode of transportations. 4) Vehicle No. 5) Description of goods 6) Grade 7) No. of boxes 8) Total weight of goods in Kg. 9) Rate per Kg. 10) Total 11) Phone number 12) Fax Number 13) E-mail ID 14) Type of industry or a firm 15) Delivery time 16) Payment terms

Due to this kind of records, the assistant manager takes action regarding the dealing with suppliers.

SYSTEM OF HANDLING REJECTION:

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There are rare case happens for rejection because as per the requirement of purchasers order, company produces their product. But sometimes customers reject the order due to any reason e.g. if the cloth or fabric is defective or they received less goods then what they have ordered. The company also gives full buyback guarantee to its retailers or wholesalers, i.e. defected goods are purchased back by the company.

OTHER DEPARTMENTS:
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 TRANSPORTATION

Transportation services for garden silk mills product & sales activity of garden silk product always times & situation. The distribution of garden product is done through contract vehicle. The vehicles are taken on contract with companys term and conditions. The previous performance is taken in to consideration while taking vehicle for coming year. Each vehicles move 4 times daily in the route. Through there is no fixed route for the city vehicle, the vehicle for outside route remains same throughout the year .Contract are signed by the contractor to meet any eventuality during the dispatch. The penalty is charged in the following case: If vehicle does not reach on stipulated time. If vehicle keeps more materials that gate pass. If there is compliant from the agent. For the supply of less materials to agents

ADMINISTRATIVEDEPARTMENT
Administrative officer is totally a management personal operating in an administrative capacity with all information and all the expertise needed for effective and timely decision. It is organizing, planning and controlling of all the activities and leading of the people to achieve the objectives of the business firm and help in cost reduction.

HEALTH AND SECURITY

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This is the most important department of the company which includes security staff. Garden company appointed a security officer who keeps his eye on every individual entering the company. They issue attendance card to the workers and also the visitor pass so that they can keep record about each and every individual working in the company. The head of security department in garden is security officer and this security officer work and directed under the control of administrative officer.

Garden company gives a free doctor treatment to the employees without decting from their salaries. Beside this they have exclusive contract with the civil hospital for convenience of workers

CONCLUSION:
I after having visited GARDEN SILK MILLS LTD. have learnt and experienced a lot and it was a pleasant experience for me to know the internal aspects of the organization. I have got a very positive and co-operative response from everyone at GARDEN SILK MILLS LTD. The get trained in this company, I have not only learned as for as the technical and manufacturing fields are concerned. As a BBA student it is compulsory for me to have the best possible knowledge about industries and about its internal affairs. Due to this visit only I can get the benefit of visiting and adopting the knowledge by the famous and No.1 Company is very effective and good, their products are best quality, and pricing policy is also very much appreciable and done after the study of each and every class of people.

BIBLIOGRAPHY
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Books: For Human Resource Department : HUMAN RESOURCE MANAGEMENT

By Dr. C.B. Gupta

For Finance Department: FINANCIAL MANAGEMENT

By I.M. Pandey

For Production Department: PRODUCTION MANAGEMENT

K. Aswathappa

For Marketing Department: MARKETING MANAGEMENT:

Philip Kotler

WEBSITE http://www.gardenvareli.com
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http://www.scribd.com/doc/47951982/Garden-Silk-Report

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