TABLE OF CONTENTS

 INTRODUCTION OF TEXTILE INDUSTRY AT GLANCE

 INTRODUCTION OF NEVA GROUP
 INTRODUCTION OF NEVA GARMENT
 COMPANY PROFILE
 HISTORY OF NEVA
 TURNOVER
 OBJECTIVE
 PRODUCTS OF NEVA
 QUALITY POLICY
 MAIN COMPETITORS
 ORGANISTION STUCTURE
 DEPARMENT OF NEVA
 SWOT ANALYSIS
 FINANCIAL STATEMENT ANALYSIS
 TREND ANALTSIS
 OBJECTIVE OF RESEARCH
 RESEARCH METHODLOGY
 PROJECT
 INTRODUCTION OF TOPIC
 PROCUREMANT PROCESS IN NEVA GARMENTS LIMITTED
 PROCUREMENT OF GENERAL GOODS
 PROCUREMENT OF RAW MATERIAL
 PROCUREMENT OF ACCESSORIES & PACKAGING ITEMS
 BILL PASSING SYSTEM OF ALL TYPES OF PURCHASE IN NEVA
 LIMITATION OF THE STUDY
 CONCLUSION
 SUGGESTION
 BIBLIOGRAPHY
 INTRODUCTION OF

TEXTILE INDUSTRY AT GLANCE

PROSPECTS FOR THE TEXTILE AND GARMENT INDUSTRY IN INDIA

India is the world’s second largest producer of textiles and garments after China. It is the world’s
third largest producer of cotton—after China and the USA—and the second largest cotton
consumer after China. The textile and garment industry in India is one of the oldest
manufacturing sectors in the country and is currently it’s largest. The textile and garment industry
fulfils a pivotal role in the Indian economy. It is a major foreign exchange earner and, after
agriculture, it is the largest employer with a total workforce of 35 mn. In 2005 textiles and
garments accounted for about 14% of industrial production and 16% of export earnings.

The industry covers a wide range of activities. These include the production of natural raw
materials such as cotton, jute, silk and wool, as well as synthetic filament and spun yarn. In
addition an extensive range of finished products are made. The Indian textile industry
accounts for about 23% of the world’s spindle capacity, making it the second highest after
China, and around 6% of global rotor capacity. Also, it has the highest loom capacity—
including handlooms—with a 61% share. India accounts for about 12% of the world’s
production of textile fibers and yarns. This includes jute, of which it is the largest
producer. The country is the second largest producer of silk and cellulose fiber and
yarn, and the fifth largest producer of synthetic fiber and yarn.

INDIAN APPAREL INDUSTRY- AN OVERVIEW

The apparel industry is one of India's largest foreign exchange earners, accounting for
nearly 16% of the country's total exports. The 1996 Indian textile exports approximately
amounted to Rs.35, 000 crores of which apparel occupied over Rs14, 000 crores.

It has been estimated that India has approximately 30,000 readymade garment-
manufacturing units and around three million people are working in the industry. Today not
only is the garment export business growing, enthusiasm in the minds of the foreign buyers
is also at a high. Today many leading fashion labels are being associated with Indian
products. India is increasingly being looked upon as a major supplier of high quality
fashion apparels and Indian apparels have come to be appreciated in major markets
internationally. The credit for this goes to our exporter community.

A consistent effort towards extensive market coverage, improving technical capabilities and
putting together an attractive and wide merchandise line has paid rich dividends. But till today,
our clothing industry is dominated by sub-contractors and consists mainly of small units of 50 to
60 machines. India's supply base is medium quality, relatively high

Recent recessions in Europe and the South Asian currency crisis have also contributed their own
bits to the decimating Indian exports. Though these are expected to fizzle out soon, there is no
reason for complacency on the part of Indian exporters or of the garment industry. The industry
will be soon faced with open competition shorn of quotas or tariffs.
Thus the need of the hour is to enlarge both manufacturing as well as the marketing base.
Inculcation of a spirit of innovation by way of research and development and tapping new
markets especially in South Africa, Central Africa, CIS, East European countries, Latin Textile
industry is constituted of the following segments

• Readymade Garments
• Cotton Textiles including Handlooms (Millmade / Powerloom/ Handloom)
• Man-made Textiles
• Silk Textiles
• Woollen Textiles
• Handicrafts including Carpets
• Coir
• Jute
MARKET PROFILE OF TEXTILE INDUSTRY

The Indian textile industry is the second largest in the world--second only to China. Indian
textiles also account for 38percent of the country’s total exports and are, therefore, a very
important industry. The forecast is that textiles exports will reach USD 35 billion by the year
2000.

To sustain this growth, it is imperatives that the textile industry produces goods of high quality at
reasonable prices. This means that the industry must continuously modernize its machinery.
Therefore, the textile machinery industry sector has an integral role to play in the growth of
India's textile exports.
Industry analysts note that textile prices are increasingly competitive worldwide as more and
more developing countries enter the global textile trade. To maintain, if not increase, its global
market share, the Indian textile industry must procure modern, low-cost, textile machinery so that
it can produce high quality textiles and garments for export at competitive prices. It is in this
context that the market for used textile machinery’s viewed as very promising. Used textile
machinery permits India to incorporate new technology at low cost.

HERE ARE A FEW IMPORTANT FACTS ABOUT INDIA'S TEXTILE:

1. There is approximately 1200 medium to large-scale textile mills in India. Twenty percent
of these mills are located in Coimbatore (Thailand).

2. India has 34 million cotton textile spindles for cotton yarn. Cotton yarns account for 70 percent
of India's textile exports. (China has 40 million cotton spindles.)

3. Of the Indian textile yarn exports, almost 80 percent come from coarser yarns (counts below
40s). Consequently, there is aneed to upgrade the technology.

4. For the past two years, there has been a significant slow-down in the cotton-spinning segment,
mainly due to the spiraling price of cotton.

5. The domestic knitting industry is characterized by small-scale units, which lack adequate
facilities for dyeing, processing and finishing. The industry is concentrated in Tirupur
(Thailand) and Ludhiana (Punjab). Tirupur produces 60 percent of the country's total
knitwear exports. Knitted garments account for almost 32 percent of all exported garments.
The major players include Nahar Spinning, Arun Processors and Jersey India.

The industry’s major problems are:

 Inadequate design and engineering capability.

 The high cost of raw material and components.
 The high cost of finance.
 Demand constraints.
 Competition from foreign countries as a result of the lowering of import duties on textile
machinery. The high quality of imported textile equipment. Imported textile equipment
include: Auto cone winders; open-ended spinning units; single-cylinder knitting
machines; CAD systems; continuous fusing machines; air-jet looms; andtexturizing
machines. The major exporters of textile machinery to India include: Japan; Switzerland;
Germany; Korea; the UK; the U.S.; and Italy.
 To give you all some comparison from our neighboring countries, the garment industry in
Pakistan generates over 38% of their total employment and in Bangladesh over 59% of
the total people employed are in the garment industry, while in India the total number of
people employed in garment export industry, do not even cross 2% of the population.
 Lack of discipline amongst work force in the Indian garment factories is the reason for
 very low productivity and high cost of Indian garments. The same Indian worker,
working in overseas factories produces 3-4 times more, because of the fear of losing his
job. Too much job security is no good for an industry whose performance greatly depends
on the performance of its labor force. If we could allow productivity linked wage system
and allow at least 25% flexibility, you would suddenly see hundreds of new factories
being set up which will generate new employment for millions of people...

STATUS OF THE TEXTILE MACHINERY INDUSTRY

Approximately 120 companies manufacture the complete range of textile machinery. Gross
receipts for the Industry in 1997 were nearly USD 700 million. The industry employs about
150,000workers directly and an equal number indirectly. The demand for
textile machinery is mainly from end user in the cotton textiles, manmade fibers and wool unit’s
textile sectors. The industry’s major problems are:

1. Inadequate design and engineering capability.

2. The high cost of raw material and components.
3. The high cost of finance.
4. Demand constraints.
5. Competition from foreign countries as a result of the lowering of import duties on textile
machinery.
6. The high quality of imported textile equipment.

Imported textile equipment include: Auto cone winders; open-ended spinning units; single-
cylinder knitting machines; CAD systems; continuous fusing machines; air-jet looms;
andtexturizing machines. The major exporters of textile machinery to India include: Japan;
Switzerland; Germany; Korea; the UK; the U.S.; and Italy.
To give you all some comparison from our neighboring countries, the garment industry in
Pakistan generates over 38% of their total employment and in Bangladesh over 59% of the total
people employed are in the garment industry, while in India the total number of people employed
in garment export industry, do not even cross 2% of the population.

Strengths Of Indian Textile Industry

 India has rich resources of raw materials of textile industry. It is one of the largest
producers of cotton in the world and is also rich in resources of fibres like polyester,
silk, viscose etc.
 India is rich in highly trained manpower. The country has a huge advantage due to lower
wage rates. Because of low labor rates the manufacturing cost in textile automatically
comes down to very reasonable rates.
 India is highly competitive in spinning sector and has presence in almost all processes of
the value chain.
 Indian garment industry is very diverse in size, manufacturing facility, type of apparel
produced, quantity and quality of output, cost, requirement for fabric etc. It comprises
suppliers of ready-made garments for both, domestic or export markets.

Weaknesses of Indian textile Industry

  Indian textile industry is highly fragmented in industry structure, and is led by small scale
companies. The reservation of production for very small companies that was imposed
with the intention to help out small scale companies across the country, led substantial
fragmentation that distorted the competitiveness of industry. Smaller companies do not
have the fiscal resources to enhance technology or invest in the high-end engineering of
processes. Hence they lose in productivity.
 Indian labour laws are relatively unfavorable to the trades and there is an urgent need for
labour reforms in India.
 India seriously lacks in trade pact memberships, which leads to restricted access to the
other major markets.

Outlook for Indian textile Industry

The outlook for textile industry in India is very optimistic. It is expected that Indian textile
industry would continue to grow at an impressive rate. Textile industry is being modernized by an
exclusive scheme, which has set aside $5bn for investment in improvisation of machinery. India
can also grab opportunities in the export market. The textile industry is anticipated to generate
12mn new jobs in various sectors.

LUDHIANA GARMENT INDUSTRY

India with strengthening its intellectual and manufacturing base with the strong support of
infrastructural, technological and IT sector has given it the true feel of Rental success. Over the
years, the country has experienced the development of some regions as specialized in niche
products, making it more convenient for international players to source and work in India. Some
of such garment industry hubs are Ludhiana, Bangalore, Delhi, Tirupur and Jaipur.

Each region functions as independent identities, self sufficient in the technical, raw material and
labor needs of specific products.

Ludhiana: Knit Apparel

Centre has created a niche for small quantities of high value products. Ludhiana holds the
traditional strength in flat knit apparel. It has specialization in T-shirts, sweaters of both woolen
and cotton blends.

Work Culture: Apart from the vertically integrated unit’s rest of the garment industry work thru
sub contractors i.e. out house job workers. Most units have complete garmenting facilities in-
house other jobs like procurement of yarn, knitting, Dying, Printing, Embroidery are given to the
outhouse job workers.

Technology: The hub is equipped with processes to provide innovation and value-addition to flat
knits which is in great demand with the buyers.

Major global brands, sourcing from India includes SEARS, Target, Espirit, GAP, H&M, Tom
Taylor and NEXT.

Major Exporters: Oswal Group, Nahar Group, Vardhman, Greatway, Goyal Knitwears, Mohini
Exports and Bhandari Exports.
 INTRODUCTION OF
NEVA GARMENT LIMITTED
INTRODUCTION TO NEVA GARMENTS LTD (The training unit)

Chairman: NIRMAL KUMAR JAIN.

Location of company

Address:-
G.T. Road (W), Ludhiana, Ludhiana - 141005 ( India )

Web-site:-
www.nevaindia.com

E-mail:-
nevamail@nevaindia.com

Company Profile

In 1998 Indian winters changed forever. Duke-India’s number one T-shirt company and
exported to Countries like UK and US introduced NEVA, a step towards capturing Thermal
Winter Innerwear. It was a never before concept in the innerwear market in India. The product
becomes an instant success and NEVA becomes a household name. It sold more than 2 lakh
garments in the first year itself. Today the group enjoys the total turnover of more than 250
Crores.

Neva became leaders in no time, today it boasts of 25% share of the 100 crore branded thermal
market. They have a state of the art factory located in Ludhiana employing more thn 1000
employees and with machines imported from Germany, U.S.A. Japan and Taiwan, the company
produces 20,000 pcs. Per day.
Neva is responsible for turning thermal innerwear first into a necessity and then into an
industry in India. Today they produce India’s Worlds largest range of thermals.

After the phenomenal success of thermal innerwear, it was a natural for Neva to expand its
portfolio of offering. Filling ventured into high quality innerwear DNA lingerie. What was a
modest beginning in 2001 has now become a sweeping was of success.

Proving its strength on the domestic soil, Neva is now planning to take its product to
international shores. Being a premium quality brand with economical pricing has helped Neva
establish it self in the markets of Middle East and the Gulf. After the first successful phase of
overseas expansion, Neva is now poised to enter other global markets.
Right from the beginning, Neva has had a policy to provide innovative products to their
consumers. Carrying forward this policy, they at Neva are proud to introduce the perfect way to
combat winters: Neva Eleve, they also have an Active Wear range the best choice of apparel
when they are active and energetic.

Sensing the changes the market is undergoing and anticipating future selling trends; Neva has
strategically decided to foray into large format stores and multi branded outlets. As the
portfolio of products of the company is increasing rapidly, it is considering showcasing the
range in multi branded stores through a special counter. This will enable the customer to see
and choose from the large range of the Brand’s products. The future holds tremendous
opportunities as Neva moves from one Milestone to the next. Mod Quilt, Neva Maxx Esancia
and Neva Pep Thermals for all age groups. They hope that these products like any Neva
product exceed their customer’s expectations. They can also make their summer collection look
more stunning with their world class products: Neva Mod (In Co-branding with Birla Cellulose
of Aditya Birla Group), Neva Pep, Neva maxx, with these products, they can make a style
statement and at the same time, stay comfortable too.

Working Frame work of NEVA Garments

13 Zones
North, South, East, West, Gujarat, Chattisgarh, Bihar, Uttranchal,
Delhi, Haryana, Rajasthan & Uttar Pradesh

Sales Force Agents

Distributors Distributors

Retailers Retailers

Consumer Consumer
 History of NEVA

A word about “KNA”

Established more than three decodes ago “DUKE” today is a household name in India.
Consistently providing the Indian consumers, their means of maximum satisfaction by giving
them best quality products and services at an affordable process.

Coming off DUKE group of companies KNA INTERNATIONS, L.T.O. Synonyms with
excellence in its structural and functional perspectives. The meaning of the ‘KNA’ is Kuntal Jain,
Nirmal Jain, and Anil Jain.

HISTORY OF GROUP

Deekay Khitwear Incorporated in 1966

Venus fabsics Incorporated in 1978
KNA int Pvt. Ltd. Incorporated in 1979
Duke fashions Pvt. Ltd. Founded in 1993
Glaza Garments Pvt. Ltd. Founded in 1998

The house of “KNA” has contributed their mite in satisfying the customer’s need for
wearing only Unique and global quality “Thermal” inner wears for the first time in India.
The group concerns have in house facilities right from your drying facilities right from
yarn drying. “Knitting, fabric processing and finishing up to manufacturing of garments.
KNA having computerized plants state of art machinery for latest garment processing and
manufacturing and is one of the most capable units of North India to Chrum out satisfaction to
millions of its customers under the supervision of skilled and teaching qualified professionals.
Our commitment to the nation is to make available to the Indian masses History goods, Knitted
fabrics, garments and Thermal inner wear at most affordable process.

TURNOVER: - 25 crores

OBJECTIVE

The main objective of Neva is to provide high quality products at reasonable prices.

Brand vision

They are trying to place their brand among the niche players in the market. Till recently they were
catering to the market, which existed in between the upper level and the lower level, but now
their focus will be the top-of-the-line market. Hence, they are now manufacturing value added
niche products.

Brand worth

They were aware of the expected change following fall of the quota regime in 2005 and had
started working towards it by concentrating on a brand building exercise. India, being a price
sensitive market, it was necessary that they priced their product accordingly. The result was that,
they have a loyal brand following, and they make sure that their quality matches their name.
There was a constant endeavor to improve the technology, which is reflected in the product.
Placing regular ads in various media outlets further strengthened the brand’s worth.

Challenges ahead

Their main task will be to maintain their lead in this highly competitive segment by continuously
upgrading their products.

Social responsibility

They feel that each personnel in the factory are an extension of the society and it is their duty to
make them happy. Towards this they devise special programmers to upgrade the existing
knowledge of the workers. Besides, the HRD department is very active in the organization. It has
been their endeavor to take up social issues and for this they participated in the Say of no to
Shahtoosh with Thermal campaign.

Various products of Neva are:-

Winter wear
Neva body warm
Neva quilt
Neva esancia
Neva mate
Neva elene
Pep thermal
Tracksuit

Summer wear
Neva pep range
Neva max range
Neva active wear
Neva mod

The distribution network consists of distributors retailers who form an important channel.neva is
a main supplier to north zone, south zone, Delhi, Bihar, maharashtra, UP, Gujarat.

Market Area:
It is primary focusing in north India but also considering south India

Awards
1. CMAI govt. fair, Mumbai ranked as 2nd in men’s underwear category
2. Distributor leader in thermal wear all over India

QUALITY POLICY OF NEVA

The quality policy of the company shall lie to

Consistently provide products and services that meet the requirement of the customers and
tentatively advance the state – of –the –art of product and systems that meet the emerging
expectations of the customers in the growing competitive environment.
Creativity through zero non-zero performance and customer oriented education to the internal
customers to load in the global maintenance.

Business philosophy of NEVA

 Firm faith in customer delightedness through best quality product and services at
affordable prices.
 Continues up gradation of technological development and human skilds.
 Integrated diversification and product development.
 Spreading comfort crlabally to the masses at most affordable prices.
 Constant evaluation of customer’s needs and managing change accordingly.
 Steady business growth.
 Believe in “Total Quality Management”.

Competitors of Neva Garments

That is the main fact all the companies compete each other in the market. It all depends upon the
market trend and value, demand of the product. For Neva garments, there are no much
competitors but only two main competitors are Jockey, V.I.P.

DEPARMENTS OF NEVA
PRODUCTION DEPARTMENT

Thread combination used. They used 60 ticket thread and 100-ticket thread. The 100 ticket
thread is more strong is compare to the 60 ticket thread as so it is used to sew the elastic or
stretchable fabric. The various accessories that are used in the article primarily comprise of
elastic, labels, laces, buttons etc. at each of the processes a due consideration to quality
checking was given. The quality check was done while cutting of the articles, online sewing,
after sewing the entire articles, after pressing, before packing and while packing too.
The total number of machines in the department was about 150 with 5 units and 5
supervising on an average 30 machines at a time. There are a few single needle machines to
stitch labels to the articles. There are a over locking machines, flat looking machines, flat
Semaniar machines, machines with auto thread trimmer, machines for embroidery, buttonhole
button stitching etc.
Also I learnt the importance of laying in cutting, usually before cutting of the article is
done, the clothes is laid on the table in layers straight and then cut accordingly as how may
pieces can be cut in one go. The process of laying basically help in decreasing the time taken
to cut bulk amount of pieces, help cutting maximum pieces in one ago, decreased the incurred
cost and standard cutting of pieces is ensured, but the person set on the cutting job is not a
well trained one or is not accurate and precise in his job, there may be chance of bulk
wastage. The unfinished goods that are still undergoing the process of manufacturing are
called Work-in –progress.
About 10,000-11,000 pieces both summers wear and winter wear are produce in a day in
a firm. The main defects based by production that of clandering, dying problem, knitting
problem, drafting problem, bundling problem, wrong needle used etc quality control has to
look for defects by broken interlock stitch, over stitching, knitting faults, machines oil on
clothe, unseen or improper sewn pieces, wrong labels, wrong measurement, stitch shipped,
discoloring etc.
Then after the article is made, it is pressed and checked by the quality control and packed
into the transparent poly bags and boxes Mr. Ajay showed me around how the packing is
done and highlighted the while packing it must be kept into consideration that the right size
sets get into right packing and standard folds, have right label, have QC label are correctly fit
into the right size boxes, have right price tags and holograms. They are then sent to the
finished goods departments.

COMMENTS
 Absence of the proper assembly line in the production dept. which
otherwise is very pivotal for saving time, efforts, rate of error and the
exclusive supervision. It also solves the problem of workers, sitting
idle and shifting of the WIP material from one worker to another and
bringing it back again prevailing a lot of confusion.
 Certain elderly people with thick glasses were employed for the
purpose of quality checking.
 When in packing department, three different already packed products
were reopened to show me how they are well packed, the entire
three bore one defect or other.
 Also at times the people at the finished goods store are asked to
repack the content of the package in the dealer desired manner during
 which the unskilled people at packaging may hamper the packing or
misplace the articles.

KNITTING DEPATMENT

There are basically two types of the knitting machines.

 Sinker machines which is single knit used in Feona Jersey

 Interlock machines which is double knit are used in Neva quilt, Neva mate etc.

In it between two layers of cotton poly file is done. There are in all 37 machines out of which 16
are imported ones.
The edge of the imported machines over local ones is the foel that they produce finer quality
fabric, uses arto-oiling technique, and has fame to remove dirt and dust of as the Fabrics knit are
less noisy.
In order to make line pattern, on the fabric, needle drop method was used. The main difference
between the sinker and the interlock knit is that sinker fabric is one sided while the other one can
be warn both sides and sinker fabric rolls in unlike the other one.
The gray fabric is the one that is knitted a fresh without processing and after the fabric that
undergoes processing such as that of dying, it is called finished fabric. The dyed fabric is checked
for color concentration shrinkage, softening and palla to palla variation. The parameter used for
finished fabric is GSM (Gram Square Meter) pores per inch & stitch length.

COMMENTS
 The machines, which are not in use, are not kept clean at all which not
only given the department a bad look but also increase the start up
time of the machines.

MARKETING DEPARTMENT

The entire product range along with their article numbers and wholesale prices:

WINTER WEAR

Neva Body Warm

Neva Quilt
Neva Esancia
Neva Elove
Neva Mate
Hot land
Pep Thermal
Tracksuit
SUMMER WEAR

Neva Pep Range

Neva Maxx Range
Neva Active Wear
Neva Mod

The entire distribution network has been divided in zones namely North Zone, South Zones, East
Zones, Delhi, NCR, Bihar, Maharastra, Gujarat, Chhatisgarh, Rajasthan, Uttarchal, and Utter
Pradesh.

MIS DEPARTMENT
 To collect facts and figures from various departments
 To have monthly/ quarterly report generation from relevant figures.
 To formulate the system in each and every department in shape of various requisite
formats so as to clarify the doubts and confusions.
 To work for monthly/quarterly budgets, accounting and marketing.
 To analyze the coating behavior, structure according to the articles and products.
 To study viability & central requirements for all departments.

ACCOUNTS DEPARTMENT
 To prepare monthly profit and loss
 To prepare MIS reports
 To keep up-to-date accounts
 To take out the monthly trail balance
 To prepare the reconciliation treatment on monthly
 To prepare daily cash flow
 To make computer punching of vouchers regularly.
 To issue debtors aging analysis on timely basis
 To issue creditors aging analysis
 To follow up with marketing department for recovery
 To prepare quarterly and half yearly provisional P&L and balance sheet
 To prepare the financial follow up report (FFR-I & FFR-II) and sent it to concerned bank
 To get the balance yarn and fabric report from the stores monthly
 To ensure proper execution of legal notices and its follow up
 To prepare the business plans and compare it with accruals
 Preparation and filling of returns

- Filing of income tax return

- Filing of TDS return
- Finalization of sales tax return
 To make proper allocation of work in staff

COMMENTS
  Expired agreements till date are not renewed.
 Till date the payment cheques received do not mention the bill numbers against which the
payments are being made.

PERSONAL DEPARTMENT
 Joining Report
 Maintaining various records and statuary form
 Handling of advance loan programme
 Calculating monthly pay of employee and yearly perks
 Maintaining office schedule and policies
 Personal, accident, insurance and related formalities
 Handling communication system (telephone caller, fax, e.mail and photocopy etc)
 Fire system and first aid programme
 Attending Company’s guest
 Personal guest attending system
 Security and clearance system
 General Store control
 Handling Maintenance Department
 Goods receipt and dispatch control record

RECEIPT AND DISPATCH DEPARTMENT

 To receive the raw material
 To check the weight and quality of every item
 To get the quality approval
 To dispatch up to transport
 Stock feeding in computer
 Maintaining all the entries in the receipt and dispatch register
 To deliver the various fabrication or the other material to the respective department
 To ensure proper storage of packed finished garments
 Handling the problems
 To verify the register from accounts department

General Store
 To receive goods.
 Checking the item/and maintaining registers for them.
 Issuing items to various department
 Maintaining ledger of various departments.
 Balance checking
 Pass the purchase indents.

E.D.P. DEPARTMENT (ELECTRONIC DATA PROCESSING)

  Designing of new programs
 Development of programs/reports as per requirements.
 Creation of new applications.
 Maintenance of existing system
 Modification of existing programs
 Maintaining database, financial packages etc.
 Maintenance of hardware.
 Proper networking of all computers.
 Ensuring data security through logging and password.
 To look after the maintenance of all computer terminals and upgrading them as per
requirement.

COMMENTS

The ERP department needs to put in more efforts to develop more reports & yet has to go a long
way as major reports are still being made on the Microsoft excel sheet.

PURCHASING & RECEIVING DEPARTMENT

The quality of purchased parts & services & the timeliness of their delivery are critical. The
purchasing department can help a firm to achieve quality by: -
 Selecting quality conscious suppliers.
 Ensuring that purchase orders clearly define the quality requirement specified by product
design & engineering.
 Bringing together technical staffing from both the buyer & suppliers companies to
design products & solve technical problems.

Safety & transportation; design & words its warranties properly; satisfies its contractual
requirement; & has proper procurement & documentation in place in the event of the liability
clams against it. The rapid increase in the liabilities suits has made legal services an important
aspect of quality assurance.
 LIST OF DIFFERENT STORES

 Accessories Store

 Advertisement Store

 Asset Store

 Dyed Fabric Store

 Finished Fabric Store

 Finished Sample Store

 Finished Store

 General Store

 Gray Fabric Store

 Market Sample Store

 Packing Store

 Pop Material Store

 Retail store

 Scrap Store

 Yarn store
General store

In general store general items are stored like pencil, rubber, sharpener, file, computer accessories,
fax papers, paper weight, pads, various forms, A-4 sheets, envelopes, refills, stapler, stamp,
attendance register, circulars, calendars, soaps, towel, jugs, kitchenware’s, oil, fabricators.
The material is issued to various departments by the process of an requisition form .the
requisition form is a form which is filled by various departments for the fulfillment of need by
them, in requisition form the quantity, item, date of issue, suppliers are written .the requisition
form is signed by the departmental heads, then the form is pass on to the general department then
the general store head issued the items or material to various departments according to their
needs. The head of general store is Mr. Mishra and there is one helper in that store.

Accessories store: -
The head of accessories store is Mr. Navin Kumar Sharma. In accessories store accessories like
buttons, buckram, snap button, clips, packaging material, folders, dabbi, trade box, elastics, labels
are stored. The main suppliers of labels are golden art gallery Hoshiarpur, Craft ax, Delhi, screen
art Bombay, Uniroyal textiles, Panchkula etc.the main suppliers of buttons are Kailash ribbon
Delhi, Gurgaon. The suppliers of buckram are Chadha traders, Ludhiana, suppliers of clips are
Shubam Enterprises, Delhi. The supplier of packaging material, folders, dabbi, trade boxes, are
Jain pacuwal, Ludhiana.They check the quotations of various vendors and the which they find is
most suitable in the sense good quality with reasonable rates are preferred by them. Material after
cutting and before dispatch is stored in this store. There is a credit period of 60 days within which
they have to clear all the payments to their supplier’s. Extra inventory of about one month bis
stored in order to meet the future requirements. The material in accessories store is stored in
accessories store in racks according to their articles for example the inventory for article Neva
pep is stored differently and the material for article neva quilt is stored differently.

Limitation:-

 The major problem that I found in this store is lack of space.

 Due to lack of space, there is not proper storage of material, boxes of material are placed
one over the other therefore it takes enough time of the workers to search for the material
on order by the various departments, hence due to lack of proper inventory storage time
consumption is more for the execution of material is large.
 There is also a fault in the planning process of the company, like they tend to change their
production according to the market trends and according to new production process new
inventory is needed hence the inventory that is already there become wastage for
sometime or for the time when its need is again felt.

Suggestions

 Enough space must be provided to the departments so that all the operations in the
company can be carried out properly.
 The inventory which has been outdated or which is not in used should be placed at
 different place other than the currently used inventory.
 The production planning department should not change their planning process
immediately according to the market trends because it will lead to main maintenance
problem of inventory and also a lot of money of company got blocked in already stored
inventory.

Fabric department:-
In fabric department fabric after dying is stored according to the color, size and quantity in racks.
The department according to the order or according to the requirement issues the fabric. There is
about 65 ton of fabric placed there in that store.

Limitations: -

 The main I found in fabric department is that the fabric who is 2, 3 yrs old is still lying
there in that store.
 The helpers there in fabric department are only 5 6 class pass they are not
properly able to understand the order or to find the requirement quantity and color of
fabric, the head of that department helped the helpers in finding out the correct fabric to
be issued.

Suggestions:-
 The fabric which is not in used presently should be placed at some other place meant for
that material.
 The helpers must be at least 10 pass so that they can understand the order properly.

Finished Store:
In this store the goods, which are properly packed and are ready for dispatch are placed. In store
the LIFO system is being used that the material, which comes last, will go first. In this the
inventory is very properly placed in racks. The marketing department gives the order to them and
then accordingly the material is dispatched as per the order by marketing department.

Packaging store; -
The prepared goods are packed in this department. There is a file being maintained for every
article in which the trade box, stickers, pouch, every thing in maintained in that file.

The problem in this department is that there is a delay in supplying of accessories by the
accessories department
Dying store: -
The dying of materials in NEVA is done through DUKE. The grey fabric is sending for dying by
the grey store for dying. For these purposes a Performa is there in which operations are to apply
on the fabric are written the various operations include like silicon softening, enzyme wash,
compaction.

Dyeing –
Fabric is dyed as per the requirement and dried for further processing

Calendaring: -–
Calendar is a mechanical device consisting of two or larger rotating cylindrical rollers stacked on
top of each other and usually heated. The cylindrical rollers are in contact with each other under
pressure. Fabric being calendared passes around and between these cylinders.

Simple calendaring –
It consists of passing the fabric around and between the heated cylinders of the calendar. It is, in
effect, a mass production ironing or pressing of the fabric, removing all the wrinkles from the
previous processes.

Glazing calendaring –

It produces a highly glazed effect on one side of the fabric surface. The calendar machine used for
this purpose is called friction calendar or chasing calendar. One cylinder of the calendar is made
of highly polished steel. It rotates at a speed much higher than that of the fabric passing around
and between the rollers, thus, literally polishing the fabric surface.

Mercerization: –
It involves treating the material while under tension with cold concentrated sodium hydroxide
solution. Both fabrics and the yarn are mercerized but the fiber cannot. This finish imparts luster
to the cotton, increases its strength by nearly 25% and improves dye affinity producing brighter
shades than unmarcerized cotton.

Shearing: –
This process is used to cut off surface fibers on fabrics. It makes uniform the surface of the
napped fibers. The clutch or terry loops are subjected to shearing to get the velvet like product. A
fabric shear, the high
Speed machine that performs this operation has cutting action similar to a lawn mower. The
blades are stationary and the fabric moves to the cutting blades.
Napping or raising –
It is a mechanical finish in which woven or knitted fabrics are passed against rotating, bristled
wire covered brushes. This action results in fibers actually being raised from the fabric. The
overall effect is a fabric with raised fiber surface – also called rising.

Knitting store: -

Two types of knitting processes are prevalent:

Warp Knitting – Knitting takes place along the length of the fabric i.e. threads are extended
lengthwise
Weft Knitting – Knitting is width wise i.e. done on flat and circular knitting machine. Mainly
used in hosiery fabric.
SWOT ANALYSIS

I am come to know about this analysis of the company. Some points according to me are:

STRENGTH:

 Proper channel of communication i.e. top to bottom, bottom to top.

 Proper delegation of authority and responsibility.
 Proper coordination among all departments.
 Skilled and qualified staff of the company.

WEAKNESS:

 No strict attention to training & retraining program of the employee & workers.
 Company makes purchase of material always from fix supplier.
 Company has less storage area.
 No any proper methods & procedures are followed in the stores.
 Market area is limited i.e. only Indian Market.
 Not updating the data on website.

OPPERTUNITIES:

 Company can purchase new land at very low prices.

 Company cans also concentrating to South India.
 Can also focus on abroad markets

THREATS:

 Western market
 Changing government policy
  FINANCIAL STATEMENT ANALYSIS  

(A)RATIOS :

1) LIQUIDITY RATIO= LIQUID ASSETS

CURRENT LIABILITES

=Rs. 11.95/9 (in lakhs)

=1.33:1
Comment: liquid ratio of 1:1 is to be considered to be satisfactory. And Neva’s liquidity
ratio is slightly greater than the satisfactory ratio. Therefore it can be said that the company is
in the position to pay its current liabilities instantly.

2) OPERATING RATIO= OPERATING COST

NET SALES

= (Rs. 24.20/25.25) 100 (in lakhs)

=95.84%
Comment: It establishes the relationship between cost of good sold and other operating
expenses on the one hand and sales on other. Lower the operating ratio the better it is, because it
leave higher margin of profit on sales. This ratio shows that out of 100, 95.84% is the operating
cost & remaining is the profit to the company.

3)
PROFITABILITY RATIO = NET PROFIT
SALES

= ( Rs. 0.57/25.25) 100 (in lakhs)

=2.26%
Comment: this ratio measures the rate of net profit earned on sales. It helps in determining the
overall efficiency of the business operations. An increase in the ratio over the previous year
shows improvements in the overall efficiency and profitability of the business.

Comparison with industry benchmark:

It is not applying any fix standard ratio because this industry is very wide and it is very difficult
to fix standard ratios.
 (B) TREND ANALYSIS

TREND OF TURNOVER (for last 5 years) (in crore)

YEAR SALES N.P.

2002 20 0.45
2003 22 0.50
2004 23 0.57
2005 21 0.55
2006 25 0.57

Comment: These above figures show the “increasing trend” because sales and profit of Neva
Garments Ltd. is increasing per year. Up to 2004 sales and profit are increasing but in 2005 both
diminish. In year 2006 sales and profit both are increasing.

EARNING PER SHARE OF LAST 5 YEARS

E.P.S. = profit available for equity Shareholders

No. of equity Shares

Years Ratio
2002 (45,00,000/1,96,170) =Rs22.94.

2003 (50,00,000/1,96,170) = Rs25.49

2004 (57,00,000/1,96,170)=Rs29.05

2005 (55,00,000/1,96,170)=Rs28.04

2006 (57,00,000/1,96,170)=Rs29.06

Comment: This ratio is helpful in determination of the mkt. price of equity share of the
company. The ratio is also helpful in estimating the capacity of company to declare dividends
on equity share.
 RESEAECH METHODOLOGY
OBJECTIVE OF THE RESEARCH

 To study the purchase & billing of Neva Garments Ltd.

 To study the present purchasing system of NGL and to make modifications.

RESEARCH METHODOLOGY

Define the Research problem:

The first step was to identify and define the problem in clear terms, i.e. neither too broad nor too
wide, with respect to the company. The main problem in Neva garments is related to procurement
system, their suppliers & billing system. Because it is a textile manufacturing unit and large
quantity of material is required. So, procurement procedure & its proper billing are compulsory
into consideration. Due to lack of space, there is not proper storage of material, boxes of material
are placed one over the other therefore it takes enough time of the workers to search for the
material on order by the various departments, hence purchase of material should be as per the
requirement of production & space available.

Need For Research:

Research in common refers to a search for knowledge. Research as a scientific and systematic
search for pertaining information on a specific topic. Due to some upper given problem research
is necessary.

1. Procurement from limited suppliers.

2. Reduce wastage in stores from excess purchasing.

3. To maintain proper billing system

Research Design:

In this project I used “Descriptive Design”. Descriptive research studies are those studies, which
are concerned with describing the characteristics of particular individuals, or of a group or
markets etc. In a project studies concerned specific prediction with narration of facts and
characteristics of various purchases in Neva garments. The design in such must be rigid and not
flexible and must focus attention on the following:

1. Formulating the objective of the study.

2. Designing the methods of data collection.

3. Selecting the sample.

4. Collecting the data.

5. Processing and analyzing the data.

6. Reporting the findings.

In Descriptive study the first step is to specify the objectives to ensure that the data collected are
relevant. If this is not done carefully, the study may not provide the desired information.

Data Collection:

The task of data collection begins after a research problem has been defined and research
design/plan chalked out. While deciding about the method of data collection to be used for the
study, always keep in mind techniques for collecting the information must be devised. Several
methods like observation, questionnaires, interviewing, examination of records, etc. There are
two types of data collection method:

1. Primary Data:

The primary data are those, which are collected afresh and for the first time and thus happen to be
original in character. Most of the data has been collected from the primary sources like the
proprietor of the company, various operational managers, and employees working in the company
& the fabric suppliers.

I obtained primary data through observation or through direct communication with respondents in
one form or another, observations or through personal interviews.

2. Secondary Data:

The secondary data are those, which have already been collected by someone else. Some of the
secondary sources for the information have been the Internet, Reference books and magazines,
etal.

Observation Method:

The observation method is most commonly used method especially in studies relating to
behavioral sciences. In a way I all observe around me, but this sort of observation is not scientific
observation. Under the observation method, the information is checks and control on validity and
reliability.
Interview Method:

The interview method of collecting data involves presentation of oral-verbal stimuli and reply in
term of oral- verbal responses. This method can be used through personal interviews and if,
possible through telephone interview.

But this report has been prepared after taking Personal Interviews for obtaining complete
information regarding personally meet with different employees working in Purchasing section,
Accounting dept, MIS dept, EDP dept, MKT. Dept., etc. I collected all the information related to
project through their experience.

Personal Interview:

Personal method required a person known as the interviewer asking the questions generally in a
face to face contact to the other person to persons. This sort of interview may be in the form of
direct personal investigation.

The method of collecting the information through the personal interview is usually carried out in
a two way.

1. Structure Interview

2. Unstructured Interview

1. Structure Interview:

Such interviews involve the use of a set of predetermined questions and of highly standardized
techniques of recording.

2. Unstructured Interview

In against of the structure interview, unstructured interviews don’t follow a system of

predetermined questions and standardized technique of recording information. In an unstructured
interview, the interviewer is allowing much freedom to ask. He may change the sequence of the
questions.

In this project, I collected all the information through unstructured interview method because of
shortage of time and in mid of the training my trainer left the job.
 PROCUREMENT AND BILL PASSING
SYSTEM
INTRODUCTION OF TOPIC:-

DEFINITION OF PROCUREMENT:

In its narrow sense, the term ‘purchasing’ refers to the act of buying an item at a price. This very
narrow conception of purchasing has been gradually widened during the last 70 years.
A broader meaning of purchasing makes it a managerial activity which goes beyond the simple
act of buying & includes the planning & policy activities covering a wide range of related &
complementary activities. Included in such activities are the research and development strategies
required for the proper selection of materials & sources from which those materials may be
bought, the follow-up to insure proper delivery, the development of proper procedure, methods &
forms to enable the purchasing department to carry out the establishment policies; the co-
ordination of the activities of the purchasing department with such other interval divisions of the
concern as traffic, receiving, store-keeping, & accounting, so as to facilitate smooth operations &
the development of a technique of effective communication with the top management of the
company so that, a true picture of the performance of the purchasing function is presented.

PROCUREMENT OF MATERIALS

The quality of the finished product depends upon the quality of raw material used therein. An
improved craftsmanship can of course help in improving the quality of the product but it cannot
change the basic character of the raw material used. Therefore, it is essential that the Purchase
Department should make the purchases of the right quality and also at the right prices to avoid the
cost of production from being adversely affected. The purchase of sub-standard material can only
result in
(a) high wastage of material,
(b) low quality of product,
(c) Machine breakdowns.
It should be clearly understood that any economy in cost made by the purchase of sub-standard
material is a bad economy as this economy is set-off by increased production overheads and
reduced sale price of the products manufactured.

The following factors contribute to purchase control:

(i) Determination of Quantity to be Purchased. Quantities purchased in excessive
number or weight block the working capital and the quantities purchased below the
reasonable limit endanger the continuous working of the factory.
(ii) Determination of the Ordering Point. The ordering point or the ordering level is one
at which the order for purchase of material is to be placed with the supplies when the
stock of that material is reduced to that point by consumption or otherwise.
(iii) Determination of Price at which to be Purchased. The selection of right supplies and
the best terms available out of the quotations received, help this factor.

Objectives of material purchase:-

 1. To exercise proper control on the purchase.
2. Accurate sales & production for casting determine the size of inventory.
3. The objective of purchasing function is right materials at right price from right supplier at
right quantities. So buying function gas a built in demand for quality.
4. To ensure continuous supply of materials & spares parts, accessory.
5. Purchase material for avoiding the over stocking & under stocking of inventory.
6. To purchase in such a way that optimum level of inventory will maintain.
7. To purchase right quality goods at reasonable prices.
8. To purchase in such a way that to avoid the excess investment in the inventories.
9. To develop satisfactory sources of supply & maintaining production.
10. To locate new materials & product as required.
11. To develop good procedures together with adequate controls & purchasing policy.
12. To implement such programs as value analysis, cost analysis & make-or-buy to reduce
the cost of purchase.
13. To achieve a high degree of co-operations & co-ordination with other departments in the
organization.

Organization of purchase department

The Purchase Department is headed by the Purchase Manager who, with the help of his
assistants, performs the work connected with the purchasing of the materials required for the
industry.

The Purchase Department is supposed to be a man of high integrity and a man possessing expert
knowledge of making purchases. For better working of his department, he should have the
knowledge also of
(i) the working of the factory
(ii) the types of ,materials required
(iii) the firms of supplies
(iv) Legal matters regarding making of contract.

He should keep himself well informed of the terms available from the suppliers. He should be
well versed in state laws, rules and regulations of the home as foreign markets.
Centralized vs. Decentralized buying. Whether buying should be centralized or decentralized is a
matter which should be decided taking into consideration various factors like
(a) locations and distances between different production units
(b) types of products requiring different materials
(c) night shift, if any, and
(d) Firm’s policy.

Under centralized buying, there is only one purchase department which makes all the purchases.
The central buying gives the benefits of better control on buying, expert knowledge of the
talented purchasing staff, and the reduced operating overheads of the department.
In case of decentralized buying, there are several purchase departments which require separate
offices, separate staff, and much of duplication or purchase operations.
The decentralized organization is good only if the production units are situated in different cities
or at long distances from each other.
Generally, centralized buying us preferred, more so, where several factories producing uniforms
products are run under the same management, for reasons of economy, best buying and
uniformity in the type of raw materials purchased.
Purchase cycle
The purchase cycle constitutes the following:
1. Initiating the purchases;
2. Receiving of the purchase requisitions;
3. Deciding important factors relating to purchase;
4. Selecting the supplies;
5. Placing purchase-order and follow-up;
6. Receiving the supply and returning unwarranted supplies;
7. Inspecting the materials received; &
8. Passing invoices for payment.

Initiating the Purchase

The following persons initiate the purchase:
(a) the store-keeper:- to make up his stocks;
(b) the Production-planner:- to acquire materials for research and development, or to
manufacture a new product;
(c) The Department Head:- to acquire such materials which do not form part of the store-list,
i.e., such materials as are not usually kept in the store-room.

Purchase requisition

Purchase requisition is a request is made to the purchase department, to purchase the materials
enlisted in its form.
The purchase requisition is prepared by the officers who initiate the purchase, and of these the
store-keeper is the main functionary. He enlists all such articles in this form, whose stock
balances have come down to the Ordering Points, or the articles which would be demanded by the
production department shortly. Where there are different stores for different departments, each
storekeeper prepares this form for his respective department and submits the same to the purchase
department, after getting it approved by the foreman or executive authorized for the purpose.
The purchase requisition is prepared in triplicate, the original copy is sent to the purchase
department, the second one to the stores accountant, and the third copy is retained by the maker
for his record.
Where this requisition is prepared by the head of the production department, or by the
production-planner and is submitted directly to the purchase department, this form is modified
suitably, as the above form is one good for use by the store-keeper.

Bill of materials

Whenever a job or work order is taken in hand, a complete schedule of such materials, parts, etc.
along whit their specifications is prepared by the planning department, and the drawing office, as
would be required in completing that work. This schedule is known as the ‘bill of materials’. A
copy of this bill is sent to store-keeper so that he may keep those materials ready in stock for use
in that work. The store-keeper submits the purchase requisition on the basis of Bill of Materials
received from different works, if he finds the stock short to meet required for completing the
particular work and it, therefore, contains the small as well as highly significant items to be used
therein. A proforma of the bill of materials is given below:
 BILL OF MATERIAL
Date…… No………
Deliver to Quantity DESCRIPTION rate Amount
Dept. No.

Job No………..
Charge Cr. Materials…………
Standing Order No…… A/c………………

Received by Approved by Delivered by

………………….. ………………….. ……………………….

Deciding important factors relating to purchases

The important factors to be decided are:
(a) What to purchase,
(b) When to purchase, and
(c) How much to purchase?

What to purchase

In the ‘Description’ column of the purchase requisition form, the specifications and the quality of
materials are to be mentioned in unambiguous terms so that faulty purchases may not be made
and the articles may be purchased as requisitioned. The exact specifications and quality can be
had by a proper record of classification of all the materials to supplement the system of
classification. For quality determination, experience is the best guide but the standards lay down
by the Indian Standards. Institute for raw materials may also be helpful. For the unascertained
quality of materials, it is advisable that the materials be purchased from the reliable suppliers.

When to Purchase
Purchase is made when the stock of materials is reduced by consumption to the order point. The
date of the delivery is specified in the purchase requisition and so the materials should be made
available by that date by purchase department. Special items for which no limits or order-points
are fixed may be purchased as and when needed.
Sometimes purchases are made in large bulk if the market is highly favorable, or the goods are
seasonal ones, i.e., available in one season only, or future due to any reason, whatsoever.

How much to purchase

Quantities should be purchased in economic lots so that there may not be overstocking and at
same time, the production work does not suffer for want of materials.
Over-stocking is to be avoided for the following reasons:
(i) Working capital is unnecessarily locked up and interest may have to be paid thereon.
More storage space is required. Insurance charges and other costs of carrying
inventory, i.e., material storage costs also have to be incurred.
(ii) There is risk of deterioration in quality, depreciation in quantity due to evaporation,
rusting, etc., and the risk of obsolescence. There is risk of breakage, theft and
excessive consumption also.
(iii) Subsequent fall in prices may give financial loss.

Under-stocking is to be avoided for the following reasons:

(i) If the materials fall short, the production is hampered, immediate and on-the-spot
purchases have to be made at quite high prices, or a costlier substitute has to be used
from the existing stock.
(ii) In process work, if production of one process suffers for want of materials, the
substitute has to be used from the existing stock.
(iii) The fall in output increases cost and decreases profits. Sometimes damages may have
to be paid to customers due to late supply. The fall in output or the delay in
production can, however, be overcome by paying over-time wages. But the over-time
rates are double the normal rates.
How much quantity to purchases in one order is determined by the application of Economic
Order Quantity tool.

Selection of suppliers
After receiving the purchase requisitions, the next step is to select the suppliers to whom the
orders may be sent for the supply. This is done by inviting tenders or quotations from different
suppliers. A list of the firms of suppliers should be got approved each year by the Purchase
Department and the top level management should do it after review of the record of each firm’s
reliability, terms and conditions and its working in the past. The fake and unreliable firms should
be scored out and tenders be invited from the approved firms on the prescribed forms. To
discourage unreliable firms, a deposit or earnest money is required to be furnished by the firms
along with tenders so that if the firms does not supply on the quoted prices, the deposits may be
forfeited.
While inviting the tenders, the supplying firms should be requested to state their terms and
conditions of supply, delivery time, mode of payment, etc., clearly and to send the tenders in
sealed covers. It is a practice with some business-houses that they communicate the date and time
in advance to the firms, when the tenders will be opened so that the representatives of the
supplying firms may be present at the time of opening the tenders, if they so choose.
The tenders received are tabulated in a chart in a comparative form and the lowest quotations
are accepted considering the quality into consideration. If a departure is made from the principle
of accepting the lowest quotations in some particular case, the reasons are recorded for doing so.

Purchase order and follow-up

Having accepted the tenders, the orders are placed by the Purchase Department with the firms
selected for the purchase of requisitioned materials. Tender is an offer but the Purchase order is a
contractual agreement with suppliers. Purchase order is also known as supply order.
The Purchase order should be prepared on the printed form and should contain all the
necessary details, so as to leave no room for any ambiguity or doubt and to avoid legal
complications. Besides the usual information of quantity, quality and specifications of goods,
rates approved, place and date of delivery, mode of transport, terms of payment, etc., the
following information may find place in the Purchase order:
(i) Procedure for obtaining import licence and foreign exchange for purchase from
abroad;
(ii) Escalator clause terms regarding price variations in case of running contract for
recurring supplies;
(iii) Arbitration clause in case of a dispute and the place where the disputes would be
settled.
(iv) In case of short supply, the option to purchase from other suppliers and to make
good of the loss, if any, from the original supplier with whom the order was
placed.
The original copy of the purchase order should be issued to supplier, second copy to store
accountant, third copy to goods receiving department, fourth copy to the store-keeper and
fifth copy should be retained by purchase department.

Receipt of goods
In big undertakings, a separate department known as ‘Receiving Department’ receives the
supplies and in small undertakings, this function is performed by the store-keeper. The
Receiving Department checks the supply from the copy of the Purchase order is given to this
department without stating therein the quantities ordered, and the quantities received are left
to be filled in by this department for a better check. Deficiency, if any, is noted and the matter
is taken up with the suppliers by the purchase department. Excess supplies are either retained
or returned to the supplies.

Inspection of goods received

The Inspection Department makes an inspection of the goods received regarding the
quality and specifications. Where the materials are of small value, or dependable standards
have been laid down or where the materials do not affect the final product appreciably, the
inspection can be done by random sampling but in case of costly materials or where the
quality matters, inspection has to be rigid.
After eliminating unsuitable waste, or broken articles in transit, and the materials
returnable to suppliers, Goods Received Note is prepared of the net materials received, a copy
of which is sent to Purchase Department, another copy to store-keeper along with goods
received, a third to Stores Accountant and the fourth is retained by this department for record.
The Debit Note or Credit Note as the case may be, is sent to the supplies for the material
not taken charge of.

Passing Invoices for Payment

 The invoices received from the supplies are passed on to the stores Accountant who checks and
invoice with the supplier’s quotations, copy of the Purchase Order and Goods Received Note.
The Quantity, Quality and rates of materials are checked and verified. The totals and
calculations of the amounts are also checked. Thereafter, the invoices having been approved are
sent to Pay Department for payment within stipulated period in order to avail of cash discounts,
if any.

PROCUREMENT PROCESS IN NEVA GARMENTS LTD.

Procurement of General Goods

(i) Indent Generation

Depending upon the requirement of material the indenter will raise an Indent through the system.
This Indent will contain information like Item Code, Item Description, Quantity of material
required, indent no (Indent No will be generated by the system) and indent date. After feeding all
the information, the system will check the required for a given item with the quantity available in
store. It requires the approval from head of department & General Manager. If required quantity
is more than the available stocks, the system will raise an indent for material required. This indent
will contain information like Item code, Item description, Indent date, Indenter department and
the Quantity Required.

Content of the Indent:

Particulars of goods to be purchased
The quantity Reqd.
The date and quantity of goods last ordered
The name of the party
Any other relevant particulars.

Departmental indent duly authorized by the Head of Department is sent to store wherein a
consolidation of indent is prepared. Store Department cross checks the requirement with physical
availability of the item and the stock level of the item as per system. Consolidated indent is
approved by the General Manager/Director. If a new item is required to be indent, then the system
provides a request form in which the indenter will fill the description of item with uses and
groups and identity and send this form for issuance of item code to E.D.P. Department. A new
item will be generated by the E.D.P. Department and will be available to the indenter. Approved
consolidated Indent sent to Purchase department for Procurement. Incase a General Stores Item is
required to be procured through Head or an enquiry needs to be raised through Head an
intimation is sent in respect of such indent

Routine Indent: Store department not issue any monthly routine indent for common used items
depending upon stock (Minimum & Maximum Levels). The General Manager approves these
indents. Particular indent is generated on the basis of the requirement.

(ii)Enquiry and Quotation

Once the Indent is received in the Purchase Department, the purchase department invites the
quotation from suppliers and prepares a comparative chart for approval of Price by the General
Manager/Director. Once the quotation in the format of comparative chart is approved the
purchase order will be generated.

(iii) Purchase Order Generation for General goods

The PO generation takes place after selecting the supplier. The PO has the reference of
consolidate indent no. and contains information like Item Code, Item Description, Rate, Quantity,
Duties etc. There is one PO for one supplier. P.O. will contain the following information:

The name of the supplier

Goods specification as to qty. Quality, Source, Date of supply, Price agreed to, etc
Terms regarding delivery, freight, insurance, etc.

Current Rate: The current rate for an item should not exceed the rate at which the item was last
purchased. In case the current rate for the item exceeds the last purchasing price then the changed
rate will be applicable only after being approved by the General Manager/Director.

Purchase Quantity: The Quantity of material to be purchased and mentioned in PO not exceeds
the quantity that has been approved in the Indent. HOD can amend the indent before issuance of
PO.

Purchase Order Cancellation: A purchase order may be cancelled for some reason only under
Authority from the General Manager/Director. If all or part of material against PO has been
received, it cannot be cancelled.

Purchase Order Amendment: The PO can be amended till arrival of goods i.e. issuance of
goods inward challan at store. PO can be amended only after the approval of the General
Manager/Director. Discount can be increased. Ultimately cost is downward. The amendment can
be effected in respect of quantity also.
Purchase Order Short Closing: The PO can be short closed only in conditions like when a
supplier fails to deliver goods in a specified time and schedule and purchase department wants to
procure goods from some other suppliers. Short closing has to be approved by the General
Manager/Director under explained circumstances. If it is decided not to close the PO and carry
forward the shortage to next month, then purchase department can raise a fresh indent for that
quantity and get the same approved and raise a PO to other suppliers. Further a PO can be short
closed where a part of the requirement for desired material has been fulfilled and there is no
further requirement of balance quantity. But a short closed PO cannot be reopened.

Valid Purchase Order: Only those PO’s would be considered as valid that has been approved
by the General Manager/Director or a person authorized for that.

Valid Date for Purchase Order: The PO’s will contain a date up to field, which will be
considered as valid date. This Valid date can be amended if necessary.

Payments and Delivery Details: PO will contain details of number of days after which the
payments will be made to the supplier. These days will be defined in the PO. The
expected/required date for delivery of material will also be mentioned on Purchase order.
Discount on Purchase Order: Discounts can be given on PO level or quantity. PO level discount
will be on total amount of material. Discount can be given on basic price or basic + excise duty.
Discount can be expressed in percentage or Amount. Discount will not affect excise duty and sale
tax calculation.

Excise Duty: It can be applicable PO wise. If excise duty is defined at PO level then it will be
applicable on all items mentioned in the PO. Excise Duty can be expressed in percentage or
Amount.

Sale Tax: It may be applicable PO wise. If sales tax is defined on PO level then it will be
applicable on all the items mentioned in the PO. Sales tax can be expressed in percentage or
Amount. If sale tax is in % then
Sales Tax Amount = (Basic Amount + Excise Amount) * Sale tax %.

Freight: Freight amount can or cannot be mentioned on PO, depending upon the conditions
applied and will be expressed in amount. The Freight will be the part of Landed cost.

PROCUREMENT OF RAW MATERIAL

Procurement Planning

Planning is done on monthly (1or3) basis as per the production target set by the management. On
the basis of this planning purchase department prepares a procurement plan for the Raw
Materials. The total quantity of each item to be procured depends on the type of Products to be
manufactured, quantity of each product in which a particular item is being used. Depending upon
the Purchase Planning a Bill of Material is prepared. If any item is common in more than one
product, and then quantity of that item required by different products is summed up together. The
quantity of item to be purchased is calculated as follows:

Item to be Purchase = (Total Qty of Item Required – (Stock Available + Work in Progress +
Material in Transit)
Raw Material is procured from Ludhiana or Calcutta or Tripura Region depending upon the type
of material to be purchased. The quantities of material to be purchased from Ludhiana, Delhi are
defined in the Bill of Material.

Indent Generation
For purchasing yarn no indent is generated because its demand generates after every 2or 3 days
and head officer is authorized to purchase the material without generated an indent. They direct
give order for purchase.

Enquiry and Quotation: A Purchase department invites the quotation from its supplier and
prepares a comparative chart for approval. This comparative chart will comprise of previous
purchase rates as well as lowest purchase price. Once this quotation is approved a PO will be
generated.
Rate Comparison
After enquiry, quotations received from suppliers are compared. It also compares the last
purchase price. Once quotation is approved the Purchase Order will be generated.

Purchase Order Generation for Raw Material

To procure Raw material, PO will be generated The PO will mention the Date wise delivery
schedule for the material to be supplied by the supplier. The PO can also be generated for lot
supplies i.e. without any schedule.

The PO will also contain the following information.

Basic Price + Freight + VAT (Value Added Tax)

Current Rate: The current rate for an item should not exceed the rate at which the item was last
purchased. The Last purchasing price (LPP) of the item should be mentioned on Comparative
Chart.

Purchase Quantity: The Quantity of material to be purchased as mentioned in PO should not

exceed the required quantity.

Purchase Order Cancellation: A Purchase Order may be cancelled for some reason under
explained circumstances for a Purchase Order against which item is not received.

Purchase Order Amendment: The PO can be amended till passing of Purchase Bill. Discount
can be increased. Ultimately cost is downward. The amendment can be effected in respect of
quantity also.

Purchase Order Short Closing: The PO can be short closed only in conditions like when a
supplier fails to deliver goods in specified time and schedule, and purchase department wants to
procure goods from some other suppliers. A fresh Purchase Order can be raised on other supplier
for the short closed quantity. If it is decided not to close the PO and carry forward the shortage for
time, then purchase department can raise the fresh indent for that quantity. Also the PO can be
short closed where a part of requirement for desired material has been fulfilled and there is no
further requirement of balance quantity of material. A Purchase Order can also be short closed in
the case when prices of item have fallen below the Order price but quality is also diminishing,
then the fix quality. A short closed purchase order cannot be reopened.

Valid Purchase Order: Only those PO’s are considered as valid that has been approved by the
General Manager/Director or a person authorized for that.

Valid Date for Purchase Order: The PO’s contains a date up to field, which will be considered
as valid date. This Valid date can be amended if necessary. This date is not mandatory.
Payments and Delivery Details: PO has details of number of days after which the payments will
be made to the supplier. These days are defined in the P.O. The expected /required date for
delivery of material is also we mentioned on P.O.

Discount on Purchase Order: Discount can be given PO level or quantity. PO level discount
will be on total amount of all materials in the Purchase Order. Discount can be given on basic
price. Mainly cash discount is preferred. If payment is made with in 2 days supplier allows 1%
c.d.

Excise Duty: It will be applicable Item wise or PO wise. If excise duty is defined on PO level
then it will be applicable on all items mentioned in the PO. Excise Duty can be expressed in
percentage or Amount

Sale Tax: It will be applicable PO wise. If sales tax is defined on PO level then it will be
applicable on all the items mentioned in the PO. Sales tax can be expressed in percentage or
Amount. If sale tax is in % then
Sale Tax Amount = Basic Amount * Sale tax %.
Sales tax is applicable when raw material purchases from outside the Ldh.

Freight: Freight amount can or cannot be mentioned on PO, depending upon the conditions
applied and will be expressed in amount.
 PROCUREMENT OF ACCESSORIES & PACKAGING ITEMS

Procurement planning

It is planned on the basis of monthly selling targets set by the management. The quantity of each
item to be ordered depends on the type of products to be sold. The quantity of trading item to be
purchased is calculated as follows:

Item to be purchased = (Total quantity of item Required – Stock Available + Min Stock Level).

Indent Generation
On the basis of planning done for the procurement of trading item, An Indent shall be generated
on monthly basis with weekly delivery schedule. Quantity of item on indent should never exceed
the purchase-planned quantity. The General Manager will sanction every indent.

Enquiry and Quotation

Once the Indent is generated, the Purchase Department invites the quotation from manufacturers
of Trading Items and prepares a comparative chart for approval from General Manager. This
comparative chart will comprise of previous purchase rates as well as lowest purchase price
during last six months. This comparative chart will be forwarded to the General Manager for final
approval. Once this quotation is approved a PO will be generated.

Purchase Order Generation for Trading Goods

To procure Trading goods, PO will be generated on the basis of Indent. Multiple PO’s can be
prepared against one indent as well as one Purchase order can be generated covering more then
one Indent. The PO will mention the weekly schedule of the material to be supplied by the
supplier. A Rate contract order can also be generated.
The purchase order will also contain the following information.
Basic Price + Excise + VAT (Value Added Tax) + Cartage + Insurance
Incase of Purchase within state of Punjab from Registered Dealers, No Sale Tax will be
chargeable. PTL shall require the detail of such purchase for Purchase Tax Return Purpose.

Incase goods are order F.O.R. suppliers godown, freight shall not be mentioned.
The system will also provide a Locking facility for upward revision of purchase price in the PO.
This Locking facility will be under the control of General Manager/Director/or a person
authorized for this purpose.

Short Close of Purchase Order: In case a supplier fails to supply goods as per schedule, the
Purchase Department can either short closed the Purchase Order and raise new Purchase Order on
other supplier or carry forward the short supply of that supplier to be adjusted in next months
requirement. In that case, a new indent shall be raised to issue new Purchase Order. If due to any
reason a supplier cannot achieve the target set in schedule, then the balance quantity can be
adjusted in next schedule & can be further adjusted in next month plan. The short closure of
Purchase Order or carry forward of short supply to next month shall be done under approval from
the General Manager/Director.
Current Rate: The current rate for an item should not exceed the rate at which the item was last
purchased. In case the current rate for the item exceeds the last purchasing price then the new rate
will be applicable only after being approved and the Last Purchasing Price (LPP) of the item
should be mentioned on Comparison Chart.

Purchase Quantity: The Quantity of material to be purchased as mentioned in PO should not

exceed the required quantity that has been mentioned on the Indent.

Purchase Order Amendment: The PO can be amended till arrival of goods i.e. issuance of
goods inward challan at store. PO (Not Cancelled, Not Closed) can be amended only after the
approval from the General Manager/Director. The rate, sale tax, excise can be decreased.
Discount can be increased. Ultimately cost is downward. The amendment can be effected in
respect of quantity also.

Purchase Order Authorization: Only that PO’s would be considered as valid that has been
approved by General Manager/Director or a person authorized for that.

Valid Date for Purchase Order: The PO’s will contain a date up to field, which will be
considered as valid date. This Valid date can be amended if necessary. This date is not mandatory.

Payments and Delivery Details: PO will contain details of number of days after which the
payments will be made to the supplier. Incase of payment for > 120 days, the number of days
shall not be mentioned but the word ‘As Usual’ will be written by the Purchase dept. on the
purchase order. The date for delivery of material will also be mentioned on PO.

Discount on Purchase Order: Discount can be PO level or quantity. PO level discount will be
on total amount of material. Discount can be given on basic price or basic + excise duty. Discount
can be expressed in percentage or Amount. PO’s level discount will not affect excise duty and
sale tax calculation, but Purchase Order landed cost will be affected i.e.

PO Landed Cost = PO landed cost (excluding po level discount) - PO level discount.

There can be a Hidden Discount, in Percentage or in amount, which shall not be printed on
Purchase Order but stored in system for all purposes. On the PO, PTL will mention the word
“HD” in place of discount.

Excise Duty: It will be applicable PO wise. If excise duty is defined on PO level then it will be
applicable on all items mentioned in the PO. Excise Duty can be expressed in percentage or
Amount. Excise duty on material can be on
1) Basic Amount
2) Basic Amount –Discount.
3) Per Unit (Excise Duty Based on the Quantity).
Sale Tax It will be applicable PO wise. If sales tax is defined on PO level then it will be
applicable on all the items mentioned in the PO. Sales tax can be expressed in percentage or
Amount. If sale tax is in % then

Sale Tax Amount = (Basic Amount + Excise Amount) * Sale tax %.

If Purchases are within the state of Punjab from Registered Dealers, No Sale Tax shall be
involved but PTL shall require a detail of such Purchase for Purchase Tax Return.

Freight: Freight amount will be mentioned on PO and will be expressed in amount.

Octroi: The party as per the agreement pays Octroi and this Octroi will also be the part of Landed
Cost. Octroi will be charged on
1. Weight of Material
2. Amount of Material.

Landed Cost: = (Basic + Excise+ Sale Tax + freight + Octroi.)- Po level discount

Accessories & Packaging which is used in the production are handled by Mr. Naveen
Sharma who told me about where they purchase materials. There suppliers names
are:-

Labels: -
 Wovel Label
 Rai Label
 Suvidhi Label
 Golden Art Gallery (Hosiyarpur)
 Screen Art (Bombay)
 Amritser Printing Press
 Craft Tax (Delhi)

Buttons:
 Kalash Ribbons (Delhi, Gurgaon)
 Other Local vendor-Prem Parkash, Shamlal
Buckram:-

 Subham Enterprises
 Chadda Tradors

Folders:-
 Jain Packuual (Ludhiana)

Pouch:-
 J.M.D Printer

Suppliers of Neva Garments for yarn purchase

 G.P.I
 Aarti International (Delhi)
 DEFINATION OF BILLING

Service providers must be reactive to customer needs and move away from the traditional,
monolithic billing systems which slow down the introduction of new, exciting services. Billing
must now be about customer centricity and enhancing the overall customer experience right from
subscription through to payment. Customer centric billing is about:

 Rapidly offering new services or modifying existing ones with minimal IT intervention
 Providing customers with all services regardless of their payment method
 Offering innovative and flexible payment options for prepaid and postpaid billing
capabilities
 Offering simplified and flexible subscription and invoicing possibilities
 Handling customer requests and claims quickly and easily

Bill Passing System Of All Types Of Purchase In Neva Garments Ltd.

New Billing System: At the time of MRR (Material Receipt Report) preparation in store, the store
department will only be concerned about the quantity. Store Department will not enter the rate of
any item but rate and value shall be taken by the System from Purchase Order Data (Net price
after deduction all discount & Hidden Discounts.) net price of the item shall be printed on MRR.
Store department will receive the supplier bill and store send the bill to the purchase department
with quality report and a copy of MRR. Bill will be passed on the basis of Purchase Order as well
as MRR.

Finance department is not linked with Purchase department directly. Stores dept. takes care of
bridging the gap between Finance and Purchase Dept. Store department forwards the bills
received from the supplier to purchase department along with following documents: -
a. MRR (Material Receipt Report).—Inward Challan Duly Approved.
b. Inspection Report.
c. Bill of Supplier.
Purchase department checks the bills as per Purchase Orders and MRR. Purchase department also
checks whether to raise a Debit Note or not. Debit note will be raised in these cases: -
1) Rate Difference: - If bill rate of an item is more than the rate mentioned in the Purchase
Order for that item, then a Debit Note for total rate difference amount will be raised against
supplier. Any hidden discount not mentioned in the PO but is recorded in the system shall
also be considered for the purpose of issuance of Debit Note.
2) Rejection: - If the material supplied by a supplier is rejected at QC and sent back, then a

Debit Note of total rejected amount will be raised against supplier. Debit Note shall have

reference of Gate Pass.

3) Shortage: - If the material supplied by a supplier is short, then a Debit Note for value of
short material will be raised against supplier.

After considering all the above cases, the Purchase department sends a Debit Note advice to
Accounts Dept. duly verified by Audit Department along with all the documents, which comprise
the amount that should be debited against supplier. As Accounts department receives the bill with
Debit Note advice from purchase department, they check the bills again to mitigate errors. After
through verification of debit note advice accounts department issues a Debit Note against
supplier. A Debit Note voucher is generated for the same debiting supplier account by total Debit
Note amount and crediting different Purchase head (which will be defined item wise). After
accomplishing this process, Purchase Dept, Audit Dept and General Manager will approve the bill
and after approval bill will be passed. A Purchase voucher will be generated for the same
crediting supplier is by bill amount and debiting purchase account. At bill passing, value/cost of
goods shall be updated in store & all levels and shall be final. If any advance is balanced to the
supplier (against purchase order) then will be adjusted through the bill. Bill will be passed on the
basis of ‘Whichever is Less” i.e. if bill amount raised by the party is less than the Purchase order
amount, then bill will be passed on the basis of supplier bill.

Total Amt. Payable To Supplier = Bill Amt. (Raised by supplier) - (Dr. Note Amt. + Advance)

In the case of purchase bill passing, the Debit Note to the supplier for material procured through
head office will be issued by the head office but recorded at Ludhiana. The copy of MRR (Inward
Challan) will be sent to head office from PTL for issuance of Debit Note.

New Bill Passing System

At the time of MRR preparation by store department, the rate will not be entered for any item. As
Store department receives the supplier invoice it is sent to purchase department along with quality
report and a copy of MRR. Bill will be passed on the basis of purchase order as well as MRR.
At the time of bill passing the total landed cost of an item is calculated with some extra cost
components and that landed cost will go to the MRR for stock valuation. Extra cost components
are not related to the supplier as it will not affect supplier account, but it will affect the landed
cost of an item.
If finance department pays freight, cartage, etc. to any transporter against any MRR, then this
freight amount will be treated as one cost component at the time of bill passing and that freight
amount will be entered on MRR by Account department when paying the freight. Incase freight is
billed by the transporter at a later date; Store while preparing MRR, shall give its reference in the
MRR. MRR will be crossed checked by accounts department that concern MRR is loaded.

At the time of bill passing the total landed cost of an item is to be calculated with extra cost
components added to MRR at various stages such as freight, cartage, unloading etc. These all
added cost component shall from the landed cost of item; total landed cost will go to the MRR
records for stock valuation. Extra cost components are not related to the supplier and it will not
affect the supplier the account, but it will affect the landed cost of an item.
If finance department pays freight, Cartage to a transporter against any MRR, the reference of
MRR shall be entered in the system and amount shall become a cost component for that MRR. At
the time of Bill Passing, these amounts will be checked on MRR by Purchase Department. The
Purchase bills will be crosschecked by Accounts Department that concerned MRR is loaded.
LIMITATIONS OF THE STUDY
Although I have tried my best to make this project research successful but still there are
limitations faced by me during my training period in ‘NGL’ these are: -

1) Some employees were busy in their work, so they were enable to give me enough
time.
2) Many employees were restraining to give me correct and full information regarding
the company. So it is also a drawback in my way.
3) Although I tried my best to learn the best possible during my stay in ‘NGL’ but still
time and resources constraints come in my way to learn more.
4) Biasness of the employees towards their own work.
5) Mid way the advisor of the company left the job.
6) In case of primary data, which is based on expressed opinion of the respondent it
could not be verified to find out their accuracy.

CONCLUSION

The result which I found in my study by using the different methods are as following:

 Purchase planning is not making by authorized persons for a fix time period.
 Company prefers the cash payments to its suppliers for availing the cash discount.
 Bill passing system of NGL is properly systematic.
 Payment is made to the vendor after clarifying the material.

SUGGESTIONS

1. Company should not depend on one or two suppliers or fix suppliers. It must try other
supplier’s quality & price.
2. Company should give more concentration on Cash Discount. Top executive should ‘see
what can be done about a discount’.
3. Manager should be well versed in state laws, rules and regulations of the home market.
4. Storage area in the company is not enough. Therefore company should purchase more
land for storage of material.
5. Company should apply the ‘Bin card system.’ That the company may not face the
overstock or under stock of the material. ‘Bin card system’ should contain the Maximum,
Minimum, Re-order & Danger level of the stock of each item.
6. Company should adapt the ‘EOQ’ tool while purchasing. How much quantity to
purchases in one order is determined by the application of Economic Order Quantity tool.
Economic order quantity (EOQ)

Notation
D = demand in units per year
H = holding cost in dollars/unit/year
S = cost of placing an order in dollars
Q = order quantity in units
Total Annual Cost for Purchase Lots
 TCp  S ( D / Q)  H ( Q / 2)
2 DS
EOQ 
H
7. Company should adopt Centralized purchase department. , there is only one purchase
department which makes all the purchases. The central buying gives the benefits of better
control on buying, expert knowledge of the talented purchasing staff, and the reduced
operating overheads of the department.
8. Company should adopt proper way of collecting the Quotation form from the suppliers
i.e. Quotation should be in written form, not collect from the telephone. Make the
comparative chart as following bases.
Weighted composite rating plan
1. Capability - 40%
2. Quality - 30%
3. Reliability - 20%
4. Attitude - 10%
Composite rating plan in a typical purchase department
Factor Points
1. Quality 70
2. Service 20
3. Price 10
TOTAL 100
9. The purchasing and bill passing system of the company should also provide the
relationship of vendor with his other firms because a vendor may have more than one
firm. If the vendor supplies the goods by other firms (i.e. sister concerns) the system will
recognize the Sister concern of that vendor and accept the goods with generating an MRR
for the same.
10. The company purchasing and bill passing system should provide a facility of determining
min/max quantity and the vendor item link. These shall be self-setting as per given
parameters for each item.
11. The company system should provide a comparative supplier wise detail of landed cost of
raw material, which should include all the expenses incurred on procurement of material,
direct as well as indirect.
12. The company system should provide a facility for open indent where the indenter can
raise the indent above the monthly requirement i.e. for storage. Material so procured
should be adjusted in the following month requirement.
13. The company system should also provide a vendor rating procedure on given parameters
such as:
1. Supply as per schedule on given time.
2. Level of rejection
3. Days of Payment
4. Price
14. The company system should provide a facility to determine emergent purchase or follow
up based on list of critical items i.e. today’s shortage.
15. A purchase order should also be raised for long term i.e. say 3 months or six months
wherein only monthly delivery schedule shall be given which will be called as “Rate-
contract”.
ABREVATIONS
List of important abbreviations used in this project report:

NGL. - Neva Garments Limited

EQ. - Equity
N.P. - Net Profit
MKT. - Market
SYS. - System
P.O. - Purchase order
DEPT.- Department

BIBLIOGRAPHY

The information was extracted from the following sources:

REFERENCE BOOKS-

Prof. M.L.Agarwal, Cost Accounting

Khotari, C.R., Research methodology

INTERNET-

www.nevaindia.com
www.dukeindia.com
www.venusindia.com
www.invatol.com
www.google.com
http://www.allbusiness.com/services/business-services/3992611-1.html
http://apparel.indiamart.com/lib/garments/indian07251998.html
http://www.infomat.com/research/infre0000225.html
http://nevaindia.com/about.html
www.invatol.com/BuyVenQual.html 
  PROJECT REPORT

ON

NEVA GARMENT LIMITED

Submitted to :
(Punjab Technical University, Jalandhar)

In partial fulfillment of the requirements for the degree of

(Bachelor of Business Administration)

Submitted to: Submitted by:

Mrs. Rajni Sofat Gurpreet Singh
Roll No.:-7049240445

GURU NANAK INSTITUTE OF MANAGEMENT AND

TECHNOLOGY, LUDHIANA