Summer Training Report on Nakoda Ltd.

Cheriyan Sanup Simon
MBA, Sem-III, Section- A Batch 2008-2010

Department of Business and Industrial Management, VNSGU, Surat.


This is to certify that Cheriyan Sanup Simon, a student of M.B.A. part-II, has successfully completed his summer training at Nakoda Limited, Karanj as a part of partial fulfillment of the degree of Master of Business Administration, full time program at Department Of Business And Industrial Management, Veer Narmad South Gujarat University, 3rd semester during the academic year 2009-2010.

I am satisfied with his work and send it for further evaluation.

Date: ________________ Place: _______________

____________________ Prof. Jaydip Chaudhari Project Guide

____________________ Dr. Renuka Garg Head of the Department (DBIM)


Sincere efforts, hard work and proper time management have been the key behind the completion of this training program. However “Every project big or small, is successful largely due to the efforts of a number of Wonderful people, who have always given their valuable advice or helping hand. I sincerely appreciate the inspiration, support and efforts of all who directly or indirectly contributed to this work and making it a success”. It is needless to say that the completion of this training was not possible without the co-operation of all the people of Nakoda Ltd, Karanj, and my college Department of Business and Industrial Management.

First of all I will like to thank my college for providing us training as a part of our curricular activities; this has given me a tremendous opportunity to be a part of Nakoda family, as a trainee. I will like to thank my mentor of our college Mr. Jaydeep Chaudhary sir for his valuable guidelines.

Undergoing training in this Manufacturing Company would not have been possible without the continuous help and captive inputs of all the company employees, I will like to thank Mr. N.K Sharma Sir, Head of Department, HR for allowing and guiding me throughout the training period. I am grateful to all the Head of Departments like Production, Quality Control, Purchase, Dispatch, Stores, Packaging, Power Plant, Electrical Department, for their valuable contributions, to whom I am highly indebted for guiding and instructing me through out the entire report. I humbly place on record my feelings and deep sense of gratitude towards them.

I acknowledge my gratitude towards all those who have directly or indirectly provided me the timely help and encouraged me through out the course of this work.

Cheriayn Sanup Simon


Nakoda limited is one of one of the largest manufacturers of fully drawn yarn in India. Nakoda has its manufacturing plants in Karanj where I took the training.

It has its own Natural Gas based 6.2 MW Captive Power Plant which provides and assures continues power supply to the plant.

It has a dedicated chemical laboratory to ensure continuous improvement in the quality of the finished products. Chemical lab is equipped with latest technology machine like Dynafil-M.

State of the art laboratory carry out tests from raw material and the finished products each batch of the finished product is tested for quality and consistency. It has its own waste disposal unit; here the affluent is treated before it is released hence avoiding contamination and hence satisfying its commitment for cleaner and greener environment.

Nakoda Ltd follows well defined HR policies like yearly based Performance Appraisal system, Recruitment and induction process, Maintenance of individual employee files etc. It has its marketing offices in Surat.

Its well equipped and latest technological sound quality control and physical labs ensures a quality product to its customers. A well managed stores department equipped with MMS(Material Management System) software helps the management of the stores properly and effectively. Its Manufacturing Excellence department ensures a continuous improvement of the product quality and lowering of the production cost, and maintenance of the cleanliness, and systematic arrangement of the things so that the things could be found out easily even by a new or unknown person.



Sr. No.
01. 02. 03. 04. 05. 06. 07. 08.

Introduction HR Department Marketing Department Finance Department Production Department Quality Control Department Stores Department Power Plant

Page No.


The Company was incorporated as a Private Limited Company on 13th August 1984 under the name of Nakoda Textile Industries Private Limited. It became a deemed Public Limited Company by virtue of Sec. 43A of Companies Act 1956 on 17th August 1989. By means of resolution passed by company in annual general meeting held on 16th September 1991, company was converted into Public Limited Company. The Company was engaged in trading of yarn for year since incorporation and established its own texturising plant at Silvassa in the Union Territory of Dadra & Nagar Haveli in February 1986. It was engaged in processing of Polyester Yarn like Texturising & Twisting. Its license capacity & installed capacity of Texturising was 708 M.T. and Twisting was 525 M.T. in 1991. The Texturising capacity was then expanded to 2658 M.T. by adding new texturising machines. The expansion plant was setup at village Karanj. The company embarked upon integrated plan of POY spinning with an installed capacity of 6000 MTPA, initially. POY spinning lines along with other machineries were erected at the site and commercial production commenced in March 1997. The company then discontinued trading activity in grey cloth. Gradually, POY capacity was enhanced to 12500 MTPA by installation of balancing equipments, increasing productivity, introducing cost control and developing capabilities of human resources. The Company made its maiden Public issue of Fully Convertible Debentures aggregating to Rs. 600 lacs in the year 1992. A preferential allotment of equity shares aggregating to Rs. 494.50 lacs was made in the year 1997. With this allotment the total Paid up Equity capital is Rs. 1100 lacs. The shares are listed at Bombay Stock Exchange (BSE). In the year 1999 the company was successful in acquiring plant and machineries of Garware Nylons Ltd. (in Liqn.) Pune. It has enhanced its POY production capacity to 21600 MTPA in the year 2001. Further company also acquired POY production facilities of Indian Organic Chemicals Ltd., Chennai. The equipments of same where used at Surat plant for further expansion and to enhance production. In the year 2004 POY spinning capacity has been expanded to 31000 MTPA. In the year 2007 company undertook Expansion envisaging addition of 20,000 MTPA of Fully Drawn Yarn (FDY) to the existing capacity. The FDY plant became fully operational in November 2007. FDY is expected to improve both, the top and bottom line of the company significantly as FDY is a more value added product. Unlike POY which has to be texturised before conversion to fabrics. FDY 7

can be directly used for weaving.

Nakoda Ltd - Organization vision
Our vision at Nakoda Textile Industries Limited is...

To be most preferred & significant supplier of the products and achieve sustained growth.

The vision will be realized through adopting the following strategy: Adopting Innovations Focus on core competence Product Integration approach Developing a lean and efficient organization

Organization values

In pursuit of excellence and growth, we shall act as Trustees For Organization Customers, employees, shareholders and society By:

Continually enhancing value for our customers with quality products and services to meet their changing needs. Empowering our employees, encouraging innovation and entrepreneurship in an environment, which makes work fun. Steadily building wealth for shareholders. Contributing to the well being of society and the environment. We shall make innovation and change a way of life at all times and conduct ourselves with honesty, fairness, and trust in god.


Quality policy

Our Quality Policy: a. Provide products and services to its customers not only meeting but exceeding their requirements. b. Provide opportunities for growth and conductive work environment to its employees. c. Contribute to environment & society as a responsible social entity. All the members of the Nakoda Textile group are committed to achieve the above policy. The implementation of the quality policy is effectively realized through deployment of functional quality objectives.

Environmental policy
Nakoda Textile is committed to contribute to the well being of the Society and Environment. We shall continue to improve our environmental performance through, Complying applicable environmental regulatory and other requirements Adopting the strategies to prevent generation of pollution. Effective conservation of energy and natural resources like fossil fuels and water. Training employees on environment related activity and communicating policy to all employees.


Health & safety policy:
In our pursuit of excellence and growth we are committed to promote health and safety of employees and others associated with our operations. We shall achieve this by: Implementation and continual improvement of Occupational Health and Safety Management System, Compliance with the applicable Legal and other requirements, Providing and maintaining safety facilities, operations and working conditions. Preventing incidents and accidents at Factory premises by Enhancing awareness, Skills, and competency level of our employees and others to accept individual responsibility for health and safety at work.

Future Outlook:
Nakoda Textile seeks to further strengthen its leadership in the domestic market. The company is keen to increase its shares with existing customers and looks forward eagerly to new business. There is also a major thrust plan to expand the units to various other places and to acquire polyester manufacturing plants in foreign countries. Nakoda Textile seeks to consistently meet and exceed the needs and expectations of its quality conscious customers in India.


Organization Structure




HR Vision
"To become "The Most Preferred" employer by empowering our employees and encouraging innovation and entrepreneurship in an environment that makes work fun."

Human Resource Planning is the planning for accomplishing the current and future requirements of the Personnel according to the organizational needs. HR department General Manager is responsible for Human Resource Planning Human Resource Requirement can be satisfied by promotion of the employee or by recruiting the person of desired skill level. If an employee of the company is capable of handling the job then he/she is usually promoted to the job and then the vacancy thus generated can again be satisfied by another capable person


The sources of recruitment are varying as per the requirement of the personnel. The sources can be classified into two categories –  Internal Sources – If the requirements are satisfied by the internal sources, then Nakoda Ltd goes for the Transfer & if found suitable it goes for Promotion.  External Sources – If the requirements can not be fulfilled by the internal sources Nakoda Ltd goes for External Sources. They are –     Newspapers Private Consultants. Gate Recruitment. Private Contractor.

As per the suitability, the HR department chooses any of the above sources & carries out the process of Recruitment followed by Induction.



1. While it is the effort of the company to encourage growth of the employees and fill all vacancies from within, this is not always possible in a growing organization. Where demands for additional trained manpower Out Strip the availability within the company. In such an event, out-side recruitment is resorted to the following general guide line will be followed for all levels of‘ induction of the company.

a. All recruitment will be against sanctioned vacancies with prior written approval of the unit head. At the beginning of each year, each department head will get his organisation chart approved from the unit head. The organisation chart of his department will state clearly the additional manpower / replacement required. After the organisation chart has been approved by M.D. each department head requiring additional manpower / replacement will forward to personnel department, a manpower requisition indicating in as much details as possible. The reason for the vacancy, the job description of the post, the type of‘ the candidate most likely to meet the needs in terms of qualification, experience etc., the salary level desired and any other information of help in selection of the right candidate. b. All recruitment / co-ordination of all levels will be handled by personnel department. c. Letters of appointment will be signed by the unit head only. No other person is authorized to sign any appointment letters on behalf of the company. d. Giving of any assurance verbal or written by any employee except these empowered to do so by the management will be treated as severe. e. No employee is authorized to recruit or give a commitment for recruitment (implied or otherwise). f. All appointments are subject to the candidate selected being found and remaining medically lit in accordance with the procedure specified by the company from time to time. g. All appointments are subject to credentials given by the selected candidates being verified and reference report being satisfactory. In case any employee gives wrong information or conceals facts in either the application for employment form or in the subsequent declaration to the company his employment is liable for termination without any notice or compensation in lieu thereof. 14

h. The company may engage from time to time some of sanctioned strength services of such fresh graduates technical who on successful completion of their training period may he absorbed in the company at suitable levels. The terms of employment and benefits facilities perquisites for such appointments would be as finalized by the management from time to time. All such appointment would be routed through the personnel department. i. PROBATION PERIOD Probation period shall be for six months for all new joiners. At the end of this period if the service of the new joiner is found to be satisfactory, lie will be confirmed in the services of the company through a written letter of confirmation. The management has the right to extend or decrease this period of probation.


Unless otherwise specified payment of fare to all out station candidates called for an interview will be made on the following.

GRADE General Manger & above Manager & above Engineer & above Other staff & worker


No fare will be paid to any candidates from Surat or its surrounding area for interview at Karanj plant. Higher fare then entitled above may be sanctioned by unit head.


Candidates who have been selected for employment in the company will be issued a letter of appointment giving all the terms and conditions of his / her appointment indicating date of joining and place of posting.



The following expenses in connection with joining of duties would be paid. a. FARE: The officers would be reimbursing actual fare of self and his family by the mode and class of travel to which he shall be entitled as per T.A. Rules of the company. It will be essential to produce ticket numbers in case of travel by train and air ticket jackets in case of travel by air to support the claim mode only for staff member. b. Packing and freight: The actual expenses incurred on account of packing of house hold goods and freight charges incurred in transportation, supported by bills would be reimbursed only for managers and above. c. The total amount of expenses towards item no. a & b shall be equivalent to one month basic salary of the employee or actual amount whichever is less. In view of this restriction on the amount of reimbursement employees would be free to undertake travel by a mode / class of travel lower than their entitlement as per T.A. Rules so as to compensate for additional expenses if incurred on packing and freight. - The claim for joining expenses by the employee should be forwarded to the personnel department which after verification shall forward it to accounts department for payment. - No deviation to there rule will be permitted under any circumstances. - The management reserves the right to amend or alter or to totally abolish this scheme at any time in future. - The above facilities are also applicable in case of transfer of employees from one place to another. - If an employee leaves the job within the period of one year from the date of joining he has to pay hack the amounts to the company.

JOINING FORMALITIES Immediately on joining the employee shall complete the following formalities. 1. Submit to P & A department his joining report along with application Form, photocopy of birth certificate, qualification and previous experience. 2. Submit form for PF nomination. Form no. 13 in duplicate for transfer of his PF account from 16

previous concern. 3. Submit details in regard to his / her insurance policies / NSC and other relating documents including the last pay certificate in regard to tax deducted at source by his previous employer (If any).


LEAVE All transferred employees shall be allowed special leave for shifting as under: Leave eligibility Distance between previous place or residence and joining place Un-married Married

- Less than 150 km. - 151 km. to 300 km. - 301 km. to 1000 km - 1001 km. to above

1 2 3

2 3 4 5

- Leave for shifting would he sanctioned by the departmental head.



Performance Appraisal

OBJECTIVE: a. To evaluate performance of all employees in order to create strong bias towards need for achievement of set goals. b. To introduce consistent and systematic measure of an individuals performances personality, potential and weakness. c. To utilise the strength and correct the weakness of individual employees for better performance and all round development. d. To develop the career plans for individual employees and to identify the training needs required in line with the company short term and long term goals. e. To develop a system of reward based on achievement, potential for growth and the commitment of the individual to the company. Increment / Promotion policy: The Company reviews all employees for increments / promotions in April of each year. Personnel department will handle the work related to all categories of employees of the company. Performance evaluation rating forms circulated by the personnel department and duly completed by the apprising officers / department head from the base for determining the increment levels of individuals. Promotion and special increment will depend upon performance / achievements of the employee or if any vacancy falls in respective position. No promotion / increment can be claimed as a matter of right by any individual. Increment will normally be considered at the time of annual appraisal, Mid year review will be on exceptional basis, solely increment will he given only after completion of one year of service from the date of joining and there after on the first April of the year.


GRADE CLASSIFICATION OF MANAGEMENT STAFF Management staffs in the company are classified in the following grades. GRADE O A Al A2 B C D E F G H I J K DESIGNATION VP/President General Manger Dy General Manager Asst General Manager Sr. Manager Manager Dy Manager Asst. Manager Sr. Engineer/ Sr.Officer /Sr. Chemist Engineer/Officer/Chemist Assi Eng/ Asst.Officer /Asst.Chemist Supervisor Sr. Assistant Jr. Assistant / Assistant



- This office order shall apply to all categories of employees of the company. - The category of the employees of the company. - The leave year for an individual shall he the calendar year.


The entitlement of leave shall he available to an eligible employee in a year.

LEAVE Privilege Casual

STAFF 30 Days 06 Days

WORKER 18 Days 03 Days

The leave will accrued at the being of the year and will he proportionate for them who join in the middle of the leave year. Only permanent employees of the company will be eligible for availing the leave accrued to them. Employees on probation and trainees would also be eligible for availing casual lease. The quantum of casual leave to this category of employees would be same as mention above.

SANCTIONING AUTHORITY: Sanction authority of leave shall be as under:-

Category Below the Dept. Head Departmental head Unit head

Recommended by Immediate superior -----------

Sanction by Dept. Head Unit head Management



Privilege leave

Privilege leave at the end of a year shall be accumulated up to a maximum of 60 days beyond which the leave if not availed, can be encashed. The applicant would encash the same at the gross salary. (Excluding HRA and special allowance) drawn during the previous month in a year. Unavailed privilege leaves lying to the credit of an employee at the time of resignation/termination of service shall be encashed at the last gross salary drawn at the rate mention above. Holidays and off days falling within a leave period will not be included in the total days of leave taken. Application for privilege leave shall be made at least 10 days in advance.

Casual leave

Casual leave is intended to be used for urgent personal work at sort notice. Unavailed casual leave at the end of a year will he lapsed and shall not be accumulated. Employees will be eligible for taking half-day casual leave also.

GENERAL Leave cannot be claimed as a matter of‘ right and the discretion of grant or refusal of leave lies solely with management. Leave record of all employees shall be kept in the personnel department who shall maintain a register recording day to day leave record of each employee. Application received from the individual employees shall he kept in the time office.



An employee who is on leave, except on account of sickness, during his tour on out station duty in connection with the business of the company shall not be entitled to drawing traveling allowance for the period of leave. Employee on privilege leave, if called back before expiry of his leave for official work, he will be allowed to & fro journey expenses of the same class which he is entitled to for self. Restricted expenses requiring special authority: Expenditure on business entertainment or beyond entitlement of TA rules by employees will be allowed only with the prior approval of the unit head or JMD. All claims for entertainment expenses must specify the names of people entertained and their business connection with company. Every employee shall book his own ticket except employees in the category of Sr. Manager & above as their travel booking shall be undertaken on request by Adm. Department. For this purpose he will be allowed to take reasonable advance from the company on application, in the prescribed the advance form. All expenditure except travel booking when done by the company shall initially be met by the employees concerned. The person concerned in particular shall settle hotel bills in cash directly at the hotel counter. Every employee must submit an expenses statement on the prescribed form to the company covering his tour within three days of completing his travel. The statement shall be supported by relevant voucher for all items.




The scheme will be applicable to all permanent employees of the company who would have completed a minimum of one-year continuous service and are confirm employees on the date of commencement of journey. Every employee shall he eligible for benefit of Leave Travel Assistance once only in each financial year of‘ the company.

Amount of assistance

The amount of assistance available on a yearly basis under the scheme shall he one-month basic salary. The basic salary here referred to shall he as at the being of a financial year in which the employee avails the benefit of the scheme. The amount shall be further limited to the total fare for each family member by the class! mode of travel to which employee is entitle as per travel rules of‘ the company, this amount shall not exceed the limit of one month salary as mentioned above.


An eligible employee shall be required to submit to the company declaration about permanent hometown along with name of his/her spouse and dependent children in the form given in Annexure. This deceleration wills he given one month from the date of appointment in case of new employee to the personnel department. The declaration regarding hometown shall ordinarily he treated as final and will be changed only under exceptional circumstances at the discretion of unit head. Declaration of home shall be based on the following criteria. 23

- The place declared as hometown is the one where the employee had been leaving for some years prior to joining the service of the company. - The place where is his/her near relations are residents. - The place which requires his/her presence at periodic intervals for discharging social obligations. - The place where the employees owns a residential property. - An employee will also be entitled to claim full reimbursement of actual cost of travel for him, self and the member of the family from the normal place of work to any other places in India limited to the total fare. The amount reimburse in this case shall not exceed the amount payable to the employee towards reimbursement of fare for his family for normal place of work to his hometown subject to the over all ceiling of month basic salary. - Where the hometown of the employee or place of visit is not connected by the usual mode of travel like Air/Rail, reimbursement will be made of reasonable expenses incurred on road journey. - An employee or member of his family shall be reimbursed expenses under the scheme only from the starting point which should be the normal place of work for the employees. - The leave travel assistance is non-cumulative and will automatically laps on the last day of the financial year.

Tax liability

- The LTA shall be claimed under income tax act only if an employee goes on a minimum leave of 5 days. - Any income tax liability arises out of reimbursement of LTA expenses as stated above shall be entirely to the employees account.


Group Gratuity Insurance Scheme All employees of the company who have completed a minimum of live year‘s continuous service will be entitled to gratuity when leaving the services of the company or retirement of otherwise. In case of death of any employee the above minimum period is not applicable to him. This amount would be pay able at the rate of 15 days basic salary for every year of service. A month shall consist of 26 days for this purpose. Salary for the purpose of gratuity is the last basic salary drawn. For the purpose of calculating the period of service the following will he considered as part of the service period. (Probation period, Notice period). Training period will not he considered for calculation of the gratuity.

For the purpose of calculating of length of service, any period excess of six months will be treated as one year. However this will not be applicable for calculating the required minimum period of eligibility i.e. Five years if employee resigns / retires after completion of 4.7 years stay in the company the period of seven months would not be counted as one year. Gratuity received by an employee is taxable subject to the laws applicable at that time.

Accounts department will be responsible for disbursement of gratuity; they will get necessary advice from personnel department on retirement / resignation of an employee.

The gratuity amount would be paid only after clearance has been received from all departments regarding advances, loans or any other items.

If the executive stages in a company flat or has a company owned vehicles or other assets, the gratuity may he with held until possession of the same is handed over and all dues related their to cleared.

The above rules are only guidelines which are subject to modification with any changes in relevant statute or as the circumstances may necessitate. 25


Granting of salary advance:

The management at any time may sanction a salary advance to an employee to meet the cost of unforeseen emergency expenses. Such an employee must have completed six months of service subject to the condition that.

No salary advance shall be granted unless the sanctioning authority is satisfied that the employees pecuniary circumstances justify and that it will he expended on him or any person actually dependent him. No further loan under the scheme will be given unless an employee has completed at least six months after the repayment of the previous loan. The total existing deduction per month (including PF, PT and other loan) should not exceed 50% of the total monthly emolument.

Maximum amount of salary advance: A salary advance sanction to an employee under these rules shall not exceed three months basic salary. The loan so sanctioned to the employee will have to be repaid in 12 equal monthly installments and shall be interest free. In view of the case flow position loan application may be processed and shall be purely on the discretion of the management.

Sectioning procedure:

The employee shall make an application for the salary advance to head (P & A) through departmental head. The head P & A recommended the same to the sectioning authority i.e. CGM or JMD. 26


Objective: To help the employee at joining of the company to meet for deposit for the rented house for their rented accommodation


Level Sr. Manager & Above Engineers & Above Workers

Amount Rs 15000/Rs 10000/Rs 5000/-

Only permanent employee or have put in at least one month of service will be covered under this scheme. The loan shall be repay able in maximum 10 equal monthly installments Request for loan should be made b the employee to the P & A department through the departmental head P & A department after verifying the loan application shall put up the case for sanction of the unit head. Sanction application would be forwarded to accounts department to shall make the payment The employee leaving the services of the company before the completion of stipulated 10 months, outstanding balance of the amount as on that date shall be deducted from the amount payable to him on account of his full and final settlement The housing deposit loan scheme does not form part of the service condition of the employee and may be modify or withdrawal by the management at any time aid granting of this loan is purely discretionary and cannot he claimed as a matter of right. No further loan under this scheme will be given to the employee. 27


The company may provide a telephone at the residence of management staff on need basis of work requirement. The company will bear the following expenses. All installation/shifting /application charges OYT/ NON OYT category as approved by the management. All official trunk — calls charges.

Unless otherwise approved by the management. STD facilities on telephone installed at the residence will be barred. This is a job link facility and may be withdrawn at any time at the discretion of the management. The management may also provide mobile phone as required to their management executive and pay rental / call charges of the same.


All management staffs arc required to observe code of conduct specified in this chapter. Any violation of this Code of acts of omission / commission leading to violation of this code will be taken serious note of by the management and may even affect the individuals‘ employment in the company.

Confidential matter: No management staff shall divulge or use, except in furtherance of the company‗s business any business or technical information which may come to his knowledge in the course of his employment in the company No management staff shall participate in or be associated with any radio / television broadcast or in any documents / papers published in his name or under an assumed name or in any communication to the press or in public speeches / ultternesses without prior written approval of the management.


Members of the management staff except in so far as it may be necessary in the course of their duties shall not without the prior written consent of the management retain in their pm ate possession any paper documents specifications, records etc. relating to the companies business. Any such material must be return to the company on severance of their services. No management staff shall acquire any patent right in relation to any products goods to be manufactured by it or which the company makes or an make in the course of his employment


Management stalk are whole time employees of the company. No management staff shall, except with the prior written permission of the management engage either directly or indirectly in any trade or business or under take another employment or consultancies or undertake such trade business/consultancy etc. on behalf of anyone else, either with or without remuneration, during the course of his employment with the company. No management staff shall accept any pecuniary advantages or any fees for any work done by him for any public body / private orgarniation or individual without the written permission of the management. PROPOSED CAR SCHEME


This scheme is proposed with the background to benefit the Sr.Manager as well as to keep certain discipline on the maintenance of vehicle. This scheme is applicable to the Sr.Manager& above who are entitling for financial assistance for purchase of vehicle. The Company shall contribute 90% of cost of car and balance 10% shall be born by the concern employee. The company shall collect upfront the amount of 10% cost as interest free deposit from the employee and balance 90% of company contribution to be recovered in 36/60 equal installment as interest free loan. The company shall not grant loan to employee to


contribute his own share of cost. ‖cost of car‖ for the purpose shall include registration and insurance charges. The concern employee shall be eligible to buy Maruti wagon-R Lxi or any equivalent car of the similar price range without any accessories. The request shall be moved by unit head for allotment of car under be scheme. Approved of CMD or JMD is required to buy and allot motor car under the scheme. The motor car shall remain under the scheme for three/five completed years. At the end of three/five years time the car shall be transfer to the concern employee at the full price paid by him. The car will be register in the name of company. General

If the employee opts to buy higher model of car, the incremental cost shall be full borne by him. In the event of employee leaving the organization before completion of three/five years from the date of allotment of car to him, the car will be transfer to him and company‘s contribution will be recovered from him. The employee who opt for the scheme shall he required to sign a confirmation to that effect. The employee shall be taxed on the perquisite value of the vehicle if any under the IT act. The management reserved the right to amend/after, wholly or partly or to withdraw the above referred schemes at any time without affecting the cases of executive, who have already opted for the scheme before the date of amendment/alternation or withdrawals.


Eligibility: Each confirmed employee shall be entitled to reimbursement of medical expenses incurred b‘ him for self his/her wife/husband and dependent children.


Maximum benefit per year:

Maximum benefit given by the company for each employee and for all eligible persons shall be restricted to 10% of basic salary, excluding house rent allowance, conveyance allowance, special allowance or any other salary of what so ever in a financial year form April to March of each year.

Procedure for claiming expenses: - All claims for medical expenses for a month should be received along with monthly salary by 10th of a month. - The employee will submit receipt in respect of expenses and payment of medicals bill incurred by him while claiming the reimbursement on a prescribed forms once in a year up to 15 March subject to his entitlement of medical expenses. General

P & A department would ensure that the amount already paid together with salary, do not exceed the limit to which the employee is entitled. In case the medical bills submitted by an individual‘s employee is not in conformity with the scheme for reimbursements or is not supported with proper bill. P & A department shall refer the case to the unit head who shall advise necessary action in the matter.

Tax liability

Any income tax liability arising out of reimbursement of medical expenses as stated above shall be entirely to the employees account.



In over Nakoda employees are not covered under ESI act, as the area is not declared by the state government for coverage under act. Considering this and with a view to give adequate cover to the employees for any accident arising in course of employment or out side the factory premises. The company as a matter policy has taken a group personal accident policy for all the employees. The policy covers all accidents in course of employment of outside the factory promises.

Procedure for inclusion of new employee:

Since the insurance policy has been taken on deposit premium basis the insurance company has agreed to keep all new employees on cover from the date of their joining. Medical expenses for compensation in leave of absences from duty. The insurance company will reimburse 10 % of capital sum insured along with medical expenses of 40 % valid claim amount in case of temporary disablement.

Additional Benefit:

Expenses for carriage of dead body of the insured person death due to accident only to the place of residence 2% of CSI or Rs. 5000/- which ever is lower. Education grant is payable in the event of death or permanent total disablement of the insured person. A. One dependent child below 25 years of age 10 % of CSI subject to maximum Rs. 5000/-. B. More than one dependent child below 25 years of‘ age 10 % of CSI subject to maximum Rs. 10000/-.



If an employee covered under the policy meets with an accident he should at the earliest send a report/convey to the personnel department the nature of the injury, cause, the doctor who is treating and the likely period of absence.

The personnel departments then immediately notify the insurance company the details of accident as reported. Personnel department will insured that medical treatment has been taken by the employee as there is an obligation to insurance company to insure that requisite medical treatment has been taken from competent doctor with a view to speed up recovery and thus minimize the disability period.

On completion of treatment and immediately after the employee reports for duty the claim form should be completed in all respects enclosing their with original receipt given by the attending doctor for treatment given and the same should be forwarded to the insurance company by the personnel department.

Transportation is provided for the employees from various points in Kim, and Railway station for selected trains, to plant for covering all the duty and shift timings (Supervisors and above).

Children education
Kim has 4 English, 3 Gujarati and 2 Hindi medium schools



Separation occurs whenever an employ is separated from the company for any of the following reasons.

Resignation Discharge / dismissal of any ground. Retirement on attaining the age of 60 years.

An employee who wishes to resign from the services of the company will be required to give notice of resignation as per the terms of his appointment for one month; he will have to be physically present in the company. No leave or absence will be treated as a notice period. The management may at its discretion accept such resignation with immediate effect or w.e.f. such other date as it deems fit. Exit interview of separated employees must be held by

1. Departmental head 2. Personnel head.

Notes of exit interview summary to be sent to unit head. No final settlement will be made till the ―Final due clearance form‖ is completed and sent to the accounts department. This must be done before the date of a separation of the concerned employee.




Nakoda Ltd is a textile processing industry. In order to meet its requirement of workmen it has been decided to introduce a training scheme for spinning as well as maintenance / engineering. The purpose of the scheme is to locate arid recruit suitable persons as trainee and impart them training so that they can he brought up to meet our requirement of workmen.


All persons recruited for training under the above scheme will be trainees and will continue to be trainees till they are declared lit and confirmed in workmen category. During the period of training they shall not be entitle to any wages. They shall only be paid a stipend in order to help them to maintain them self Objectives The objectives of‘ the training schemes are: To train fresh candidates for the skilled jobs for spinning, take-up and burn out. To train checker for the quality control. To train fresh candidate for skilled job of technicians for maintenance and overhauling of machinery and equipments in the field of mechanical, electrical and instrumentation and utility. To train the fresh recruits to the level of required skill and to educate them and trained them in a manner so that they conduct them self to our way of working and discipline.

Number of trainees

The number of trainees will depend on the requirement of each production and engineering and maintenance section and the number will be mutually worked out by the concern departmental heads and unit head of the company. 35


A trainee should qualify the following condition:

He should be healthy person with no deformity. He should be between age group of 18 to 25 years. He should be educated up to SSC passed for production. He should have passed ITI in different trades according to the engineering department.


The duration of the training period will be one year. After successfully completion of the training period they will be observed in worker category “WE”.


The trainee will be paid stipend of Rs.3100 per month of 26 working days.

Progress and promotion

The progress of each of the training will be closely watched by the concern departmental head and the confirmation of the trainee will depend upon his satisfactory learning and a written report thereof from the concerned departmental head to the personnel department.

Extension of the training period

Completion of training will be subject to satisfactory learning and the extension can be considered by the concern departmental head in case he feels that the trainee needs more time of training. However in case of extension the stipend will remain the same.


Training scheme (GET, MT, DET, B.Sc., Commercial training.)


The duration of the training period will he one year. [he training period can however he cut sort subject to the incumbent having acquired the desired level of the post which can be assessed by the concerned departmental head. A written report of the result will be send by the concern department head to personnel department and personnel department will get the approval from the unit head.




Good marketing is no accident, but result of careful planning and execution. It is both the art and a science.

“Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its shareholders.‖


To anticipate and respond effectively to discerning customer needs, competitor actions, and blending information technology advance effectively to set up management process and business system.

To have a constant interaction with the customer and use continuous feed back to improve internal processes of the company.

The purpose of any business is to create and keep customers. The business is run from a production oriented enterprise to a more customer driver one. The customer is the primary element, the key corner stone, of the business.

The marketing department anticipates and responds effectively to discerning customer needs, competitor actions and blending information technology advances effectively to set up management processes and business systems.

Industrial marketing requires customisation and hence warrants constant interaction with the customer and continuous feed back to the internal processes of the Company.







Nakoda Ltd is one of the leading manufacturers of the Polyester Yarn.

Nakoda Ltd produces two types of Polyester Yarn FDY – It is known as Fully Drawn Yarn and POY – It is known as Partially Oriented Yarn

Communication is must for a company to go on and is a basis for decision making & decision making putting the plan into action. A dedicated intercom connection facilitates the internal communication in the plant. 40

Direct Marketing: The Company is in to Business to business (B2B) Marketing. Its product is
polyester yarn which are not directly consumed by consumers so the company doesn‘t need any consumer oriented marketing, and hence the company is in direct B2B marketing. It understands its business partners and associates need, it attends various trade fairs and exhibitions. Representatives of the company of marketing department promote their products in such exhibitions. The company usually gets the order directly from various companies and some of the orders by such exhibitions and trade fairs.

The Company is much cautious of its customer‘s satisfaction. It allows its customers to visit the company and welcomes suggestions if any. The company understands the need of its customers and has set various quality standards for its regular customers, the product is rejected itself in company premises if it falls anywhere below standards which assures the quality to its customers. The company provides replacements if any defective goods is sent.




Finance is like the blood in veins of the company. Whether small or big, each business has to manage the finances properly. Thus it can be said that company‘s survival and finance goes hand in hand. If the finance department fails in proper administration, the company can collapse. Thus, financial holds an important position in the company and must be handled with top priority. “Financial Management is that managerial activity, which is concerned with the planning and controlling of the firms financial resources.”

We cannot imagine a business without finance because it is the central point of all business activities, no matter whether the business is small or big, government, semi government or nongovernment. The finance function of the management is equally important for all profit making organization.

Financial management is that specialized function of general management, which is related to the procurement of finance and its effective utilization for the achievement of common goal of the organization. It includes each and every aspect of financial activity in the business.

Finance is the most important and governing tool for any business. It can be termed as a hear of business, thus, financial management is that managerial activity which is concerned planning and controlling of the firms resources. Any firm performs finance functions simultaneously and continuously in the normal course of business, finance function call for skillful planning, control and execution of the firms activities.

Working Capital Management:

This is considered as moving blood in the body which goes on circulating in the same way the working capital in the company goes on rotating the whole business cycle of the company runs on its working capital task. 43

Working capital is the most important and difficult part of finance department. Working capital management directly represents the management capabilities. It highly depends on managing recovery of payments from customers and payment made to suppliers. It is not necessary that as much we make late payments more strong will be the working capital. Company simply doesn‘t follow this concept. Company regularly clears the payments of suppliers on time which increases the reputation of the firm and ultimately becomes the best customer of their suppliers.

Methods to calculate Depreciations:

Depreciation is a measurement of the reduction in the effective life of the asset due to certain reasons during the given period of time. Gradual and permanent reduction in price of the asset is also known as depreciation.

Depreciation of fixed asset has been provided on reducing balance method on the basis at the rates specified in related schedule of Company‘s Act, 1956. In respect of additions during the year, depreciation has been provided on prorate basis for the completed number of days.

Internal Audit Policies And Control Systems:

Auditing is the process of the verification of the standards set and the actual things. In short, auditing is nothing but to check the difference between what is in the books and the physical things found. The auditing used by the company is both, auditing by self and auditing by C.A.

Cash audit is done every month. All the day-to-day cash expenses or amount withdrawn are recorded in the books. The bank audit is done every month. At the end of the month, the bank statement is compared with the records in the books. Thus, auditing helps to find out any differences 44

that have occurred and to eliminate them.

Internal audit keeps a threat on the employees, as they know that all the stocks and amount is periodically verified so they do not dare to cheat the company. The company has purchased various accounting software to maintain records of costing, purchase, sales, etc. they maintain double entry system by using various accounting software.

Profit & Loss A/c
(Rs. in Crores) Particulars INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax 904.43 706.18 524.77 313.36 137.33 14.76 3.42 20.25 8.93 0.11 0.00 52.90 20.14 32.76 5.39 27.37 4.65 0.00 14.21 2.59 20.17 7.19 0.09 0.00 37.09 15.62 21.47 4.77 16.70 3.26 0.00 8.89 2.17 12.26 4.83 0.07 0.00 22.89 8.91 13.98 3.63 10.35 0.99 0.06 8.20 1.95 11.44 5.27 0.06 0.00 14.60 5.51 9.09 2.91 6.18 0.00 0.04 7.71 2.21 6.01 4.45 0.02 0.00 10.30 4.22 6.08 2.18 3.90 0.04 NA 91.40 6.91 2.16 9.00 3.76 0.06 0.00 9.04 3.89 5.15 2.13 3.02 0.00 NA 45 1,029.31 801.41 580.04 355.04 189.18 150.88 43.04 3.54 14.99 22.46 2.50 6.07 20.32 2.24 13.92 12.62 1.92 10.54 22.68 1.44 0.09 30.22 1.77 -0.10 986.27 778.95 559.72 342.42 166.50 120.66 Dec-09 Dec-08 Dec-07 Dec-06 Dec-05 Dec-04

1,004.80 787.52 575.88 354.88 168.03 122.33

951.90 750.43 552.99 340.28 157.73 113.29

Deferred Tax Reported Net Profit Extraordinary Items Adjusted Net Profit Adjst. below Net Profit P & L Balance brought forward Statutory Appropriations Appropriations P & L Balance carried down Dividend Preference Dividend Equity Dividend % Earnings Per Share-Unit Curr Earnings Per Share(Adj)-Unit Curr Book Value-Unit Curr

0.00 22.72 0.00 22.72 -1.84 41.95 0.00 10.36 52.47 1.16 0.00 7.00 13.57 3.39 57.42

0.00 13.44 0.00 13.44 -1.67 31.34 0.00 1.16 41.95 0.99 0.00 6.00 8.41 2.10 45.30

0.00 9.30 0.12 9.18 7.38 15.54 0.00 0.88 31.34 0.75 0.00 5.00 6.11 1.53 39.54

0.00 6.14 0.00 6.14 -1.37 10.77 0.00 0.00 15.54 0.00 0.00 0.00 4.09 1.02 29.00

0.00 3.86 0.00 3.86 0.00 6.91 0.00 0.00 10.77 0.00 0.00 0.00 3.51 0.88 27.94

0.00 3.02 0.00 3.02 0.00 3.89 0.00 0.00 6.91 0.00 0.00 0.00 2.75 0.69 26.35


Balance Sheet
(Rs. in Crores) Particulars SOURCES OF FUNDS : Share Capital Reserves Total Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities APPLICATION OF FUNDS : Gross Block Less : Accumulated Depreciation Less:Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Loans and Advances Total Current Assets Less : Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Total Assets Contingent Liabilities Dec-09 Dec-08 Dec-07 Dec-06 Dec-05 Dec-04 16.60 15.78 15.00 78.72 55.70 44.31 95.32 71.48 59.31 120.85 72.44 64.41 168.06 59.66 26.49 288.91 132.10 90.90 384.23 203.58 150.21 138.82 41.82 0.00 97.00 0.00 76.37 0.59 96.91 36.43 0.00 60.48 0.00 5.07 0.04 92.85 31.66 0.00 61.19 0.00 0.00 0.19 15.00 28.50 43.50 36.38 15.38 51.76 95.26 67.48 38.54 0.00 28.94 0.00 0.00 0.19 11.00 19.73 30.73 34.92 1.44 36.36 67.09 11.00 17.98 28.98 22.95 1.14 24.09 53.07

66.29 64.42 35.63 33.44 NA NA NA NA 0.00 0.00 0.00 0.00 0.22 0.22 13.96 8.38 47.41 29.26 5.92 5.22 0.23 0.35 67.52 43.21 31.31 0.00 31.31 36.21 0.00 0.00 0.00 0.00 67.09 0.15 23.44 0.00 23.44 19.77 0.00 2.10 0.00 2.10 53.07 0.15

77.20 58.74 34.70 26.51 277.17 207.50 151.85 93.69 65.04 35.45 29.05 14.62 20.96 11.16 1.67 2.04 440.37 312.85 217.27 136.86 222.96 0.00 222.96 217.41 0.00 0.00 7.14 -7.14 384.23 1.44 165.53 1.17 166.70 146.15 0.00 0.00 5.32 -5.32 206.42 1.44 113.07 0.88 113.95 103.32 0.00 0.00 3.65 -3.65 161.05 2.17 69.35 0.00 69.35 67.51 0.00 0.00 1.38 -1.38 95.26 0.15





What is Partially Oriented Yarn

Partially Oriented Yarn, commonly known as POY is the primary form of Polyester yarn. It is also known as Polyester Pre-Oriented Yarn. It is the first form of yarn made directly from PTA & MEG or by spinning Polyester PET Chips. POY is mainly used in texturizing to make textured yarn, also known as Polyester Drawn Textured Yarn (DTY). POY can also be used in draw warping for weaving and warp knitting of fabrics. POY yarn is available in different luster like Semi-Dull POY and Bright POY. The Bright POY has the shine in it due to the cross-sections in the filaments. The fabric made from Bright POY also has the bright luster. Polyester POY yarn is mainly available in Raw White color & is also available in various different colors. POY is usually colored by the Dope Dyed technology as it is more efficient & the yarn gets evenly colored at each & every part. Color master-batch is mixed with the raw material to make the dope dyed POY. Dope dyed POY yarn can be used to make the Dope Dyed DTY yarn.


What is Fully Drawn Yarn

FDY is the abbreviation for Fully Drawn Yarn. It is also know as Polyester Filament Yarn (PFY) or Spin Draw Yarn (SDY). FDY is mainly used as weft or weaves in making fabrics. FDY can be knitted or woven with any other filament yarn to get fabric of various different varieties. It is mainly used in Home Furnishing Fabrics, Fashion Fabrics, Denim, Terry Towel and others.

FDY yarn is mainly available in 3 lusters - Semi-dull (SD), Bright (BR) having circular section & Triloble Bright (TBR) having triangular cross-sections. Filament yarn having trilobal bright luster is widely used in making curtains, bed-sheets and carpets. FDY is available in Raw-white as well dope dyed. Dope Dyed FDY yarn can be used to make the colored fabric directly instead of making the fabric with FDY Raw-white first & then dyeing it. Catonic FDY is another variation of Filament yarn. Catonic FDY yarn is made from Catonic PET Chips.




















The basic requirement of Production department is to produce Partially Oriented Yarn (POY) from Chips. Different Denier/Filaments POY is generated as per the market requirement. Production is divided in to following sections. 1. Chips Charging 2. Chips Drying, melting & Filtration 3. Spinning 4. Take-Up/Winding.

Production requires service department’s aid for smooth running of process. 1. Mechanical 2. Electrical 3. Instrument 4. Utility

Production is broadly divided in to following parts to ensure excellent running condition of process equipments.

1. Quality & Quantity of POY as per market requirement. 2. Preventive maintenance of equipments 3. Breakdown & shutdown maintenance of equipments.



1. Chips Charging

In the chip charging process, the raw material ‗chips‘ are fed on continuous basis to maintain the continuous production. As the Raw Material is received in Trucks in 50kg bag or 900kg bags, it is unloaded in the Chips storage area using Electrical Hoist. Then the checking of bags for its sealing and physical condition is done.






Silo 1

Silo 2


2. Chips Drying, melting & Filtration
Chip Drying Raw chips contain 0.1 – 0.2% moisture. Hot dry air in the dryer is used to remove the moisture of raw chips up to 0.004%. The atmosphere air is dried in Air-drying unit to get dew point of –40 °C. This dried air is then passed through a heater to get the temperature. about 180 °C. This hot dry air is inserted from bottom portion of chips dryer. The air travels upward of the chips dryer then moisture of the chips is removed. This air is exhausted from top portion of the chips dryer. Temperature gets vary from the norms when plant start up is going on, also set temperature value may be varying depending on product pattern. The parameters, which are controlled, are as follows-

(1) (2) (3) (4) (5)

Dryer Inlet Temperature. Dryer Inlet Press. Crystallizer Inlet Temperature. Crystallizer Inlet Press Crystallizer Outlet Press.

: 190 ± 10 : 50 ± 20 : 195 ± 10 : 35 ± 5 : 0 ± 20








Dried Chips are fed to an extruder where it is melted. The barrel is electrically heated its temperatures are controlled by controller. There are 5 heating Zones. Zones temperature set point can be changed as per requirement. Depending on the behavior & throughput of the line Extruder zone temperature to be kept 200 0C to 300 oC for maintaining melt temperature (FDT) temperature between 2880c ± 100c but this value can be vary when line S/D & start UP Depending on the duration period. Due to extruder characteristics of L#05 & L#06 actual zones temperature remain high compare to set value melt pressure controlled by controller. (EDP& FDP) (Depending on the line configuration.).

There are 2 sensors provided in the polymer line, one for melt temperature other is for melt pressure. The solid chips converted in to melt form.






The Polymer melt with certain temperature. ~ 285  15 °C and pressure > 120bar is passed through a filter called CPF (continuous Polymer filter). This filter has 2 cartridges one is for online CPF and another is for off line CPF. The impurities are removed up to 20  10 micron. When Delta pressure ~ 80  10 bar or as per requirement of process, CPF change over is carry forward.

Polymer Melt



Diphyl Heated Melt Line

Spg. Beam

ManiFold Diphyl Heated

Melt Pump

Pack s


3. Spinning


Quench Air

Filaments (14 to 36)

Supply 20°C ±3

Quench Screen

Spin Finish Nozzle Yarn

To take - up

The melted polymer travels from extruder to the melt pump. The melt pump calculates the required quantity of melt as per denier. This can be controlled by RPM of the melt pump. The pack contains spinnerets which is having fine holes. From pack polymer comes out in the form of filaments. These filaments get solidified due to Quench Air which is supplied from the Quench screen. Such filaments are clubbed to form one yarn at Spin Finish Nozzle. The spin finish is applied to import lubrication, antistatic, excessiveness to the yarn, as it is wound at a very high speed of about 2800 to 3400mpm.


4. Take Up

Yarn coming from Spinning.

Pig Tail Guide Arm Guide Pig Tail Guide Arm Guide Pig Tail Guide Pig Tail Guide

Up Start TR Guide Stop

For Dow by Pass n

Boost Press.

Pusher Releasing






The yarn coming from Spinning Passes from Pig tail guide to maintain tension of yarn and then it winding on Paper Tube (which is fixed on B/C) winding is possible only by rotating B/C. The Paper Tube is fixed on Bobbin Chuck. There is air pressure in Bobbin Chuck to release / tight the Paper tube when it comes in contact of Friction roller it becomes to rotate and rotating winding is possible. When spool is full, the Yarn is sucked by the suction Gun winder lifted by pushing ‗Up‘ button. As winder lifted B/C breaks comes in operation. B/C stopped within one minutes. Full package taken out on Doffing Trolley by pushing pusher and package shifted on this Trolley (Manually). After that sticker pasted on the spool and Trolley send to Q.C. dept. for checking properties.

Burn Out Department
Purpose and Scope

Pig Tail Guide

Smooth running of process Reduce the quality degradation. Assembly of the packs, C.P.F, Melt pump and Spin finish pump for future requirement. Spin finish oil Preparation Activities The activities in Burn- Out departments are as per schedule pack are changed. For pack changing old pack is removed and new pack already heated in P.P.H at least 4 hours. For new Pack & CPF preparation required Furnace, Fluidized, Uniclean bath, Acid bath, Hot water bath, Ultrasonic Systems, etc. Cleaned parts of C.P.F and pack are brought from cleaning room to assembly room. Before assembling pack every spinneret hole is to be checked by microscope and every C.P.F candle is to be checked by air bubble test. Assemblies of melt pump, Spin finish pump, pack and C.P.F is being done. If melt pump shear pin breaks/damaged it has to be changed and if it breaks repeatedly then check the whole system of melt pump completely. Preparation of Spin Finish Oil with required concentration (7% - 15%) 59

Nakoda ltd is a leading manufacturer of polyester yarn. They can be classified in 2 types – 1. POY 2. FDY

POY Denier 51/14 48/14 100/36 110/36 120/36 126/36 130/36 140/36 140/48 145/36 155/36 160/36 130/72 50/48 80/24 Finish Semi Dull SD (DT) Semi Dull Semi Dull Semi Dull Semi Dull Semi Dull Semi Dull Semi Dull Semi Dull Semi Dull Semi Dull Semi Dull Semi Dull Semi Dull 150/48 150/72 150/96 30/14 50/24 50/36 Denier 75/36 75/72 50/48 90/48 61/72 71/36

FDY Finish Semi Dull Semi Dull Semi Dull Semi Dull Semi Dull Bright Bright Bright Bright Semi Dull Semi Dull Bright




Every month the Production target is decided on the basis of the market requirements. For that the Marketing Department sends the total schedule about the Production & Dispatch. The purchase of the raw Material is done by the Purchase Department. The purchase is done on the basis of production requirement.

At the same time the Raw Materials stored status at the warehouse is daily communicated through the intercom to the concerning departments like production.

In Nakoda Ltd the manufactured products are dispatched as customer orders which it gets through Marketing Department. Manufactured goods are stored into the warehouses and as per the customer requirements the dispatch is done.




At Nakoda Ltd, quality is of paramount importance. So it has to maintain a high quality level in order to meet its customers need. The basic responsibility of quality control department is to ensure quality of all incoming material, intermediate, & finished material There are two sections in this department. 1. Textile laboratory. 2. Chemical laboratory.

Basically there are two types of quality control work required to ensure excellent quality.

1. Physical testing. 2. Chemical testing.




Doff down grade as PQ/SS/CLQ at following conditions – 1. Chips Change 2. Shade Variation in all Line 3. Line Break down 4. Percentage of Moisture in dried chips is High


Procedures for QUALITY CONTROL

Objective: To Determine the Denier of POY yarn

Definition: Weight in gms of 9000 meter of yarn is Denier.


1. Wrap Reel 2. Table Top Balance 3. Scissor


1. Make a hank of 90 mts of yarn on wrap reel without applying any pretension. 2. Weigh the hank on Table Top Balance up to 3 decimals and note down the weight of yarn.

Calculation: Denier of the yarn = weight in gms of the hank × 100

Critical Check Point:

Immediately after the take up winding at every new start up of line or break down or shut down or product change in line. Regular testing of alternate doff with testing of breakage spool of every line is carry out continuously along with production.



Objective: Determination of the Draw Force of POY

Principle: The Force used to draw the yarn at 60% Draw Ratio and 150°C temperature.

Equipment: DYNAFIL-M ( Make-Textechno)

Instrument Startup Procedure:

First of all start the power supply of Dynafil -M, Computer. Then maintain temperature of heater at 150°C then we started the testing of Draw Force.


First a standard Spool is tested, then after satisfactory results the checking of routine as per system goes on. All the values and behavior of running yarn are shown on Computer monitor.

Testing Parameter:

CODE 1. Test Length 2. Test Speed 3. Draw-off-Godet 4. Pretension 5. Heating Tube Temp 6. Standard Deviation 7. Force Limits

TEST 100 meter 100 m/min 60% cN 150°C Max 5.0 cN As per denier 67

Critical Check Point:

Immediate after Take-up winding at every new start up of line or break down or Shut down chips change in line or denier change. One end of each winder checked per day.

Non Confirmative Product: Downgraded as per norms chart.


Objective: To determine % Shrinkage of the POY by Boiling water.


Length of the yarn before and after treatment with boiling water is measured at constant tension. (600 gms) and the difference is expressed in percentage.


1. Wrap Reel

2. Water bath (For boiling water)


1. Find out the exact denier of the yarn. 2. Using the formula given below find out the number of wraps to be taken.

Weights to be hang × 5 No. of wraps = -------------------------------------Actual Denier of poy yarn


3. The required number of the turns as above on wraps reels and hang the hanks on a pin and take the initial length.

4. After taken initial length hank remove from pin and keep it in boiling water for 30 minutes.

5. After 30 minutes hank remove from water and again hang on a pin for 5 minute and take final length.

Calculations: (Initial length – final length) Percentage of shrinkage = ----------------------------------- × 100 Initial length

Critical Check Point:

1. At the time of raw material changing, break down and process parameter changing. 2. We check the % shrinkage in routine work schedule.

Non Confirmative Product: Downgraded as per norms.


Objective: To determine the percentage of Elongation at the break and Tenacity in gms /denier of the POY.

Principle: Tension is applied to the fixed length of the yarn till it breaks and its elongation end load applied at the time of break is measured.



1. KMI Tensile Tester (Manual) 2. Statimat-M (Automatic)


a) Percentage of Elongation & Force :

In this method 200 mm of yarn is adjusted between two jaws of Tensile tester and starts the instrument, lower jaw moves opposite side of other jaw and yarn extends along with it, as soon as yarn breaks operator stops machine immediately and notes reading from the scale of machines. The readings is noted i.e. Percentage of Elongation and Force. b) Tenacity: For Tenacity we applying following formula.

Force Tenacity = ----------- gms/denier Denier

Critical Check Point:

Tensile test carry over on yarn of every line immediately after start up of line after break down, at the change or disturbance of any kind of parameter. Beside it daily regular checking of yarn of each and every line is done.

Non Confirmative Product: Downgraded as per norms chart.




Stores are the place where the raw material and other required things are stored as the things are not always easy going an optimum amount of storage is to be maintained.

Packaging is an essential part of the total process of transfer of finished products to the Dispatch department and then to the customer. Packaging is an art, an art of making the things reach to its destiny with utmost care and minimum breakdowns and hence contributing to the profits if done properly.

Different packaging materials at stores  Box  Strapping  Bopp tape  Marker pen  Plastic Adapter  Thermocol sheet  Plastic (polethene) cover  Iron clip  Sealer machine











After the gate entry of packaging materials is done, it reaches to the packaging stores after the quality is checked. At packaging stores the material receipt is made & if any demand of material is there the material is supposed to be transferred to that department. If not, then the material is stored at the packaging stores. Materials are given different codes for their identification but the arrangement of packaging material is done over their as per the available space since the space problem is there.

Issue of packaging material is done as per the departmental need / demand. After the issuance of the packaging material if the material found not suitable or the remained material is returned to the packaging stores.

Daily recording of receipt, issue & return of the materials is done both the manually & through the SAP system. The purchase of packaging material is carried out by the HOD of the packaging stores as the different departments make their demand through e mail to the packaging stores. On an average about 2 Crores of material is purchased monthly.

   From gate to the packaging store material handling is done with the help of vehicles. Material handing is done with the help of the Hand Striker within the packaging store. From packaging store to various departments the material handling is done with the help of Trolleys – two wheeler, three wheeler, four wheeler etc.


Store is having its own importance within Nakoda ltd as it affects the total production process. Store is managed quite well with many within the stores. Store is divided into 3 parts and they are –   

Receipt of material Storage & Issue of materials Disposal of scrap

Basically the total procedure is followed very systematically. Purchasing process is done by the Surat office. Company purchases are scheduled by the Surat Head Office. Store also contains the lubricants & gas storage. Company is having various types of receipts like receipt of the raw materials; spares & project receipt i.e. the capital items. Capital items are those which are used for specific purpose.

 All the incoming materials are received along with the party‘s challans / transporters copy of excise gate pass at the gate for security inward entry.  The challan / challan cum invoice copy are then stamped with „SUBJECT TO QTY.VERIFICATION & INSPECTION‟ along with the Date of

acknowledgement and signature of the stores personnel.  Subsequent to the security inward entry, the challan of the material receipt is sent to the laboratory (chemical lab) by the stores executive intimation for quality testing by drawing samples from the consignments.  The laboratory (chemical lab) test the material on intimation of approval from the laboratory by ―incoming raw material inspection report‖ the material is taken up for weighting. 75

 All the incoming consignments shall accompany a weight slip from an outside source.  The stores personnel weight the material at the works weighbridge (at gate no.2) and a printout (ticket) of the gross weight is taken out after entering the vehicle number / challan details etc.  The empty vehicle is again weighed at the work weighbridge and Quantity unloaded is determined, with the stores personnel again taking out a printout of the weight slip.  The freight payment advice if payable, as per the terms, is then prepared by the stores personnel. This is authorized by the stores HOD and is then forwarded to accounts department for payment.  ‗Receiver‘ is prepared in Material Management System by the stores personnel and the quantity as per the weigh slip is accounted.  The printout of ‗Receiver‘ is then prepared in duplicate duly signed by the store personnel. After the approval of the laboratory in charge it is finally authorized by the stores HOD & the original receiver along with the original challan is then forwarded to accounts department for bill passing / payments.

In case of Raw Materials, Department is doing issues and the same is communicated to all concerned through memo, including stores.

The Raw Material consumption / stock statement is then derived from the system on day to day basis & sent to purchase & lab.

 In the event of laboratory rejection the entire material (before unloading) the receiver will be prepared for challan quantity & a corresponding return to supplier document will be prepared for Receiver quantity.


At the time of unloading if the laboratory conducts a second sampling, it will authorize rejection, if any (partly / full) in the incoming raw material inspection. Report as well as incorporate the remarks on the challan with reasons thereof wet bags, coarse, material etc.

Only the accepted quantity will be accounted as receipts in Receiver & a corresponding document ―Return to Supplier‖. For the rejected quantity will be prepared authorized by stores HOD which is then sent to Accounts department.

 The rejection quantity is returned back immediately (same truck in which material was
received) after weighing & preparation of the non-returnable gate pass

 All incoming material is received along with party‘s challans / transporters copy of excise gate pass at the gate for security inward entry.  Stores personnel then receive the challans duly acknowledged (stamped & signed by the security personnel).  The materials received are unloaded in the earmarked place material for inspection after verifying the quantity and item description as mentioned on the challan.  The challan (received from the supplier for the material supplied) is then duly stamped ―SUBJECT TO QUANTITY VERIFICATION & INSPECTION ―.  The ‗receiver‘ for the material received is than prepared (in duplication) by the stores personnel.  Based on the detail mentioned in Receiver and P.O. the user department is then intimated of the receipt of the material so that inspection could be carried out by them.  In case of the excess/ short quantity or damaged goods are received then the same is intimated to purchase department telephonically for necessary action. For excess / damaged receipt of goods, the same are returned to supplier vide gate pass & rejection letter authorized by stores HOD.

 In case on receipt of the material, ‗Receiver‘ could not be prepared for nonpreparation of the corresponding P.O. then the same is intimated to purchase 77

department.. Till the time P.O. is not received the challan is kept pending for material accounting.

 All issues from the stores are made only against the stores requisition Memo.  The stores requisition memo is received from various departments, authorized by the approved signatories. The list of approved signatories is updated half yearly.  Based on the item description/item code in the issue slip, received from the user department, the physical inventory stock is ascertained through MMS System.  After confirmation of requisite stock in the inventory, the material is physically issued to the user department and the corresponding issue entry based on the stores requisition memo is entered in the MMS System.  The stores requisition memo is then duly signed by the stores issuing personnel.

 All rejected material after the inspection (by the user department) are stacked separately in the rejection rack (specifically earmarked area) and are return back to the supplier vide gate pass and a rejection letter prepared by the stores personnel and authorized by stores HOD.  The same is also intimated to purchase and account department for future necessary action.  A corresponding document return to supplier (for rejected quantity) is prepared and signed by the stores personnel and authorized by stores HOD which is then sent to accounts department.

 For part rejection also the same procedure/ document is followed and only the
accepted quantity (approved by the user department) is taken for material accounting and the rejected quantity is not accounted.


A sale order contract is prepared, for disposal of scrap of regular item, based on quotations invited from parties. The parties are finalized (based on the quotation received) by stores in charge, Accounts in charge & internal auditor. All non regular item scrap is sold based on best quote received in sealed covers & as approved by scrap committee.

 The inventory to be properly stacked in the earmarked places (after the inspection of the user department) after giving the corresponding item codes based on the category & the location description entered into the system.  Material department‘s spares storage area is maintained with proper rack identification no.  HOD of material ensures that the pathways between racks are clear & not blocked with materials to ensure clear pathway for normal and / or emergency movements.  All the personnel involved in loading of heavy materials / equipments shall be given adequate training particularly regarding to H & S (Health & Safety) points by the safety officer.

 All the materials received are stores / stacked at the respective locations as already detailed in the MMS system.  The inventory stacking is based on different categories & group.It is ensured that chemicals are issued directly to the user department in case of emergency / delayed receipt & are required to be stored.  All the items are tagged with the item code.


 Perpetual inventory for major item for all groups is taken on regular basis & the discrepancies observe are highlighted to Management.


Power plant provides the essential electricity to the all the plants and other departments. The power plant has a power generation capacity of 6.2 MW. It has four gas engine base power generators. First two generators were taken on rent in 2006 and its power capacity is 1.1 MW each, other two generators were taken on rent in 2007, they both have the same capacity of 1.3 MW each. These generators were rented to satisfy the power demand which was going to be generated with the advent of starting of FDY plant. Power generators 1,2,3,4 are named as A, B, C and D in the plant.

The power requirement of the Nakoda Ltd is between 5 to 6 MW.

Power plant has a dedicated control room where a continuous monitoring of the whole system is done; Hourly reading of the various parameters is noted down. Alarms are set to crucial parameters which ring up when any of the parameter exceeds so that necessary correction can be done.


Primary Data:

1. Standard Operating Files of various departments of Nakoda Ltd.


1. Marketing Management – A South Asian Perspective- 13th edition by Philip
Kotler, Kevin Lane Keller, Abraham Koshy, and Mithileshwar Jha


1. 2. 3. 4.


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