CHAPTER – I

INTRODUCTION TO THE INDUSTRY

Training done at Kandagiri Spinning Mills Limited Salem under the guidance of
Abhirami, HR Manager, who gave some information and instruction about the company rules
and regulations, she also gave brief introduction about the Kandagiri spinning mill.

We are living a time that needs and demands special attention and firm commitment
towards practicing ethical norms and value and environmental safety at all the manufacturing
facilities. The management of the company has a great responsibility to influence the conditions
under which it manufactures the product. While accepting the facts the management understands
and respects the different norms, ethic and values it encounter and does not compromise violation
of any human right and the fundamental compliance issues at work place. The management always
prefer that it all activity in the interest of society, national community and company itself.

The Indian Textile and Spinning industry. The Indian textile industry is one the largest and
oldest sectors in the country and among the most important in the economy in terms of output,
investment and employment. The sector employs nearly 35 million people and after agriculture, is
the second-highest employer in the country. The Indian Spinning Industry is an integral part of the
Indian Textile Industry.

1. India claims to be the second largest manufacturer as well as provider of cotton yarn and
textiles in the world
2. India holds around 25 percent share in the cotton yarn industry across the globe
3. India contributes to around 12 percent of the world's production of cotton yarn and
textiles
4. India covers 61 percent of the international textile market
5. In terms of spindle age, the Indian textile industry is ranked second, after China, and
accounts for 23% of the world’s spindle capacity

1
 Spinning is the conversion of fibers into yarn. These fibers can be natural fibers (cotton) or
manmade fibers (polyester). Spinning also entails production of manmade filamentyan (yarn that
is not made from fibers). Final product of spinning is yarn, cotton from seed and impurities.
Spinning is the foundation process and all subsequent values additions I,e . Weaving, knitting,
processing, garments and made ups, depend upon it. Any variation in quality of spinning product
directly affects the entire value chain.

The process of making fabric form raw cotton is a long one and consists of various
stages. There are two technologies available to spin the yarn, first and the for most is ring spun
and second is opened end. With the development in technology, and changing need of people
world over different types of cotton yarns like 100% cotton compact yarn,100% organic cotton
yarn,100% cotton mercerized yarns etc. have been developed which are used to manufacture a
wide variety of cotton fabrics and clothing.

ORIGIN OF SPINNING

Hand-spinning was a cottage industry in medieval Europe, where the wool spinners
(often women and children) would provide enough yarn to service the needs of the men who
operated the looms. This would occur in districts favourable to sheep husbandry. The
introduction of the flying shuttle upset this balance. The subsequent invention of the spinning
jenny water frame redressed the balance but required water power to operate the machinery, and
the industry relocated to West Yorkshire where this was available. The British government was
very protective of the technology and restricted its export. After World War I the colonies where
the cotton was grown started to purchase and manufacture significant quantities of cotton
spinning machinery. The next breakthrough was with the move over to break or open-end
spinning, and then the adoption of artificial fibres. By then most production had moved
to India and China.

During the industrial revolution, spinners, doffers, and sweepers were employed in
spinning mills from the 18th to 20th centuries. Many mill owners preferred to employ children
due to their small size and agility.

Ring spinning is one of the most common spinning methods in the world. Other systems
include air-jet and open-end spinning, a technique where the staple fiber is blown by air into a

2
rotor and attaches to the tail of formed yarn that is continually being drawn out of the chamber.
Other methods of break spinning use needles and electrostatic forces.

Processes to Make Yarn

The processes to make yarn short-staple yarn (typically spun from fibers from 0.75 to
2.0") are blending, opening, carding, pin-drafting, roving, spinning, and—if desired—plying
and dyeing. In long staple spinning, the process may start with stretch-break of tow, a continuous
"rope" of synthetic fiber. In open-end and air-jet spinning, the roving operation is eliminated.
The spinning frame winds yarn around a bobbin.[4] Generally, after this step the yarn is wound to
a cone for knitting or weaving.

In a spinning mule, the roving is pulled off bobbins and sequentially fed through rollers
operating at several different speeds, thinning the roving at a consistent rate. The yarn is twisted
through the spinning of the bobbin as the carriage moves out, and is rolled onto a cop as the
carriage returns. Mule spinning produces a finer thread than ring spinning. Spinning by the mule
machine is an intermittent process as the frame advances and returns. It is the descendant of a
device invented in 1779 by Samuel Crompton, and produces a softer, less twisted thread that is
favored for fines and for weft.

Ring Spinning

The ring was a descendant of the Arkwright water frame of 1769 and creates yarn in a
continuous process. The yarn is coarser, has a greater twist, and is stronger, making it more
suitable for warp. Ring spinning is slow due to the distance the thread must pass around the ring.
Similar methods have improved on this including flyer and bobbin and cap spinning.

The pre-industrial techniques of hand spinning with spindle or spinning wheel continue to
be practiced as a handicraft or hobby, and enable wool or unusual vegetable and animal staples
to be used.

3
 Mule spinning

Mule spinning

Ring spinning

Ring spinning

TEXTILE INDUSTRY

The Textile industry occupies a vital place in the Indian economy and contributes
substantially to its exports earnings. Textiles exports represent nearly 30 per cent of the country’s
total exports. It has a high weight age of over 20 per cent in the National production. It provides
direct employment to over 15 million persons in the mill, power loom and handloom sectors.
Indian is the world’s second largest producer of textiles 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 industry in Indian is one of the oldest manufacturing sectors in the country and is
currently it’s largest.

4
Largest Manufacturing Industry

The textile industry occupies an important place in the Economy of the country because
of its contribution to industrial output, employment generation and foreign exchange earnings.
The textile industry encompasses a range of industrial units, which use a wide variety on natural
and synthetic fabrics. The textile industry can be broadly classified into two significance and
contribution of textile sector in national economy, initiative and efforts and being made to take
urgent and adequate to attract investment and encourage wide spread development and growth in
this sector.

The textile industry plays an important role in building up the whole economic of the
country. The cotton mill industry is the largest manufacturing industry due to abundance of
spinning and weaving mills. It is useful to develop the textile.

Textile industry in the initial stages we considered as one the labour intensive industries.
So it was considered that the textile industry’s establishment in the country would solve the
problem of an employment consequently even in the close of his twentieth century. Most of the
developing nations are stating textile mills.

SPINNING INDUSTRY IN TAMILNADU:

Tamilnadu in occupies the 3rd place in textiles next to Gujarat and Maharashtra.
Textile industry in Tamilnadu offers employment to more than one and half lakhs workers. Out
of 2049 large and medium textile mills in India, 893 mills are located in Tamilnadu.

Until last year, spinning mills in Tamilnadu were running round the clock, and were busy
expanding their operational capacities. Now, with the export market hit the economic crisis,
coupled with a few other factors, the declining foreign orders has pushed the textile industry of
South India is centered into a crisis.

Textile mills in Coimbatore accounts for a predominant part of the industry in South
India. Presently, a major part of the spinning mills which involves in manufacturing yarn remains
idle. Several units and closing down, putting the jobs of thousands of the workers into jeopardy,
and many others have not received their wages for months. 392 mills were closed during the
previous year leaving more than 2lakh workers jobless. Saddled with recession, the industry is

5
tumbling down facing a steep fall in the export orders, especially from the South East Asian
markets. The economic liberalization, which was believed to be the pivot of Coimbatore
spinning mill's success, is now being blamed as a reason for the industrial turmoil.

The corresponding period during the previous year was a busy period for the spinning
mills in South India. The spindle capacity was doubled with 40% additional capacity. All these
efforts have gone with the wind, with the advent of global recession and power crisis. The fiscal
year 2008-09 is one of the most difficult periods in the history of textile mills in South India.
Cotton yarn production is already down by 20% during the last fiscal year. Production which was
4003.44 million kg during 2007-08 dropped to 3239.17 million kg during the last year.

TEXTILE INDUSTRY INDIAN

India is a traditional textile production country. India is among the world’s producer
of yarns and fabrics. Textile industry in India is a self-reliant and independent industry and has
great diversification and versatility. The textile industry can be broadly classification into two
categories, the organized mill sector and unorganized decentralized sector. The organized sector
of the textile industry the mills. It could be spinning mill or a composite mill composite mill is
one where the spinning and facilities are carried out.

TOP 10 SPINNING MILL IN INDIA

Name Year Address

1. Vardhman 1965 Corporate Office – Ludhiana, PunjabTurnover – 1 Billion
textiles dollarEmployees – 25000+, Business – Textiles, Sector –
Public Sector
2. Arvind 1930 Corporate Office – Ahmedabad, Gujrat, Turnover – 932

6
 Mills Million Dollar, Employees – 2500+, Business – Textile,
Sector – Public Sector.
3. Bombay 1879 Corporate Office – Mumbai, Maharashtra, Turnover – 310
Dyeing Million Dollar, Employees – 10000+, Business – Textile and
Clothing, Sector – Public.
4. Raymonds 1925 Corporate Office – Mumbai, India, Turnover – 250 Million
Dollar, Employees – 10000+ | Business – Textile
5. Grasim 1948 Corporate Office – Mumbai, India, Turnover – Unknown,
Industries Employees – 6500+, Business – Textile, Cement and
manufacturing, Sector – Public Sector
6. Reliance 1960 Corporate Office – Ahmedabad, Gujrat, Turnover – Unknown,
Textiles Employees – 5000+, Business – Textiles, Sector – Public
Sector
7. Fabindia 1960 Corporate Office – New Delhi, Turnover – 68 Million Dollar,
Employees – 40000+, Business – Textiles , Home Furnishings,
Garment Accessories, Sector – Private Sector
8. JCT 1963 Corporate Office – Hoshiarpur, Punjab, Turnover – 70 Million
Limited Dollar, Employees – 4500+, Business Textiles and Filament
Yarn, Sector – Public Sector
9. Lakshmi 1910 Corporate Office – Coimbatore, Tamil Nadu, Turnover – 27
Mills Million Dollar, Employees – 1000+, Business – Textile,
Sector – Public Sector
10. Mysore Silk 1912 Corporate Office – Banglore, Karnataka, Turnover – 17 Million
Factory Dollar, Business – Silk Textile, Sector – Government Sector

7
 CHAPTER – II

INTRODUCTION TO THE COMPANY

KANDAGIRI SPINNING MILLS LIMITED was incorporated on 05-05-1976 by

Sarvashri. S.P.Ratnam, S.P.Sambandam, S.P. Rajendran and K.R. Manicka Mudaliar who had
been doyers in Textile Business at Salem. Due to their strenuous efforts over decades, the
company has flowered into a major industrial concern presently boasting of a total spindles in all
three units are 75,000.The Company manufactures Carded, Combed, Auto coned, TFO, Ring
Doubled Yarn.

Company made a public issue of 11,36,500 equity shares of Rs.10/- each at a premium of
Rs.40/- per share aggregating to Rs.568.25 lakhs in the year 1995. The issue was over subscribed
and the shares were fully allotted. At present the paid up capital of the Company is
Rs.3,84,92,500 against the Authorised Capital of Rs.5 crores. The Company's shares are listed in
the Bombay Stock Exchange.

Origin

The Company Presently is headed by Chairman and Managing Director Sri. R.

Selvarajan, S/o. Sri. S.P. Ratnam, Founder has four decades of experience in yarn
trade/manufacture and Chief Financial Officer and Director Sri.S.Vijay Shankar son of Sri.
R.Selvarajan, a management graduate and has experience in the field of textiles. They are very
much involved in running the Company successfully with a closely knit team of qualified,
youthful and skilful team of technical and other managers and workforce. Importance is given to
adherence to quality systems and schedules. Customer requirements awareness is indicated to the
good root level workers.

The Company has five Independent Directors, viz. Sri.P.S.Ananthanarayanan,

Engineering and Management Consultant, Dr.V.Gopalan, Management Consultant, Sri.N.Asoka,
Engineer and Industrialist, Sri.S.Gnanasekharan, Practising, Company Secretary and Sri.
Kameshwar M Bhat, Financial Consultant. These five independent directors are in the Audit
Committee of the Company which reviews and recommends all financial proposals, quarterly

8
and annual accounts before submission to the Board of Directors of the Company. Present
strength of the Board is Ten Directors.

Group of Companies

As stated earlier, Kandagiri Spinning Mills Limited is a significant member of the

Sambandam Group of Companies. It strives for excellence in every sphere of its activities.

The promoters are very quality conscious and always keep the technological upgradation
as an on going process by equipping the two units with latest machinery like imported coner,
comber and quality system.

KANDAGIRI SPINNING MILLS HISTORY:

Kandagiri spinning mills a ltd. Announced unaudited stand-along earnings results for the
second quarter and six months ended September 30, 2015. For the quarter, the company reported
net sales income from operation of INR 678.282 Million, profit from before other income,
finance costs and exceptional items of INR 60.233 million and net profit of 3.47 basic before
other income, finance costs and exceptions items of INR 30.467 Million or INR 6.08 PER
BASIC AND diluted share a years ago. For the six months the company before other income
finances costs and exceptional items of INR 99.103 million or INR 899.79 million, profit from
operation before other income, finance costs and exceptional items of INR 220.99 million profit
from ordinary activities before tax of INR 55.078 MILLION AND NET PROFIT of INR 35.543
million or INR 7.89 PER basic and diluted share a year ago.

ESTABLISHMENT:

The act of establishing. The condition or fact of being established. something established,
as An arranged order or system, especially a legal code. A permanent civil, political, or military
organization. An established church. A place of residence or business with its possessions and
staff. A public or private institution, such as a hospital or school. often Establishment An
established social order, as: A group of people holding most of the power and influence in a
government or society. Often used with the. A controlling group in a given field of activity.
Often used with the. American Heritage Dictionary of the English Language, Fifth Edition.

9
Copyright © 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton
Mifflin Harcourt Publishing Company.

All rights reserved. Establishment (Sociology) the Establishment a group or class of

people having institutional authority within a society, those who control the civil service, the
government, the armed forces, and the Church: usually identified with a conservative outlook
establishment. the act of establishing or state of being established a business organization or
other large institution the place where a business is carried on the staff and equipment of a
commercial or other organization (Military) the approved size, composition, and equipment of a
military unit, government department, business division, etc, as formally promulgated any large
organization, institution, or system . a household or place of residence a body of employees or
servants (modifier) belonging to or characteristic of the Establishment; orthodox or conservative:
the establishment view of history. Collins English Dictionary — Complete and Unabridged ©
HarperCollins Publishers 1991, 1994, 1998, 2000, 2000.

 The act of establishing; the state or fact of being established.

 Something established; a constituted order or system.
 The Establishment, the people and institutions constituting the existing power structure
in society; institutional authority.
 (often cap.) The dominant group in a field of endeavor or organization: the literary
Establishment.
 A household; place of residence including its furnishings, grounds, etc.
 A place of business together with its employees, merchandise, equipment, etc.
 A permanent civil, military, or other force or organization.
 An institution, as a school or hospital.
 An established church, esp. the Church of England.
 Archaic. A fixed or settled income.

MANAGEMENT KANDAGIRI SPINNING MILLS:

Earning new skills involves absorbing a lot of information. Quite often management long
time, short time management in the environment sector text that need to be read and sometime
depending on what you are studying there can be a lot of reading to do. The makes reading

10
effective an important study skill. Knowing how to focus while reading can improve your
reading and the amount of information you absorb. This can save you time by increasing your
understanding the first time you read something and reducing whether you have to go back and
material. Here are tips9 on how to focus and improve your reading decide what you want from
reading the material in manufacture of process it is always a good idea to skim the heading of the
material you are about to read so you have a general idea of what you will cover. Think about
why you are a reading the material in overall of management in the process 24 hours running
process.

PRODUCT MIX:

The science that describes the management, creation and study of money, banking, credit,
investments, assets and liabilities. Finance consists of financial systems, which include the
public, private and government spaces, and the study of finance and financial instruments, which
can relate to countless assets and liabilities. Some prefer to divide finance into three distinct
categories: public finance, corporate finance and personal.

PRODUCT RANGE:

Product Quantity

Single yarn - Weaving - Cared Ne 20/1 to Ne 40/1, Ne 60/1 & Ne 80/1

Combed Ne 20/1 to Ne 80/1

Knitting - Carded Ne 20/1 to Ne 40/1

Compact Yarn Ne 20/1 to Ne 80/1

Ne 20/2 to Ne 80/2 & Combed - Ne 20/2 to Ne 80/2

Double Yarn - Ring Doubled - Carded
TFO

Gassed Yarn - Combed Ne 40/2, Ne 60/2, Ne 70/2, Ne 80/2

11
 COMPANY DETAILS

OWNER S.P.RATNAM
KANDAGIRI SPINNING MILL LTD, UNIT –II
COMPANY ADDRESS SESHANCHAVADI. SALEM, TAMIL NADU,
636140.
REGISTRATED AND
SALEM
ADMINISTRATIVE OFFICE
REGISTRATED STATE TAMILNADU

STATUS PRIVATE LIMITED COMPANY

YEAR OF ESTABLISHMENT 1976

TOTAL ACRES 16

TYPE OF INDUSTRY COTTON YARN PRODUCTION

YARN EXPORTED TO LOCAL
SALEM, TIRUPUR, ERODE, COIMBATORE
MARKET
FOREIGN MARKET MALAYSIA, CHINA, SINGAPORE

CERTIFICATION ISO 9001-2002.

KARUR VYSYA BANK, STATE BANK OF
BANKERS INDIA, INDIAN OVERSEAS BANK , FEDERAL
BANK

COMPANY REPORT FOR KANDAGIRI SPINNING MILLS LTD.

REPORT CARD PE Rations -10.99
EPS(RS) -55.65
SALES (RS.CR) 48.78
FACE VALUE (RS) 40
NET PROFIT MARGIN(%) -40.78
LAST BOUNS 12.5%
LAST DIVIDEND 50
RETURN ON AVERAGE EQUITY -51.63

12
 CHAPTER – III
EXPECTED LEARNING

OBJECTIVES OF THE STUDY:

A Company pays in employees on a weekly basis. The employees are to four types.
Salaried employees are paid a fixed weekly salary regardless of the number of hours worked,
hourly employees are paid by the hour are receive overtime pay all hours worked in excess of 40
hours, commission employees are paid a percentage of their sales and salaried —commission
employees receive a base salary plus a percentage of their sales.

1. A To identity the awareness level& factors affecting the quality of work life.
2. A To study employee’s relationship with management.
3. A To study employee’s recognition and reward system.
4. A To give suitable suggestion to improve the quality of work life of the employees.
5. A To analyze the employee’s growth of an organization.

13
 CHAPTER – IV
DEPARTMENT OF THE ORGANIZATION CHART

ORGANIZATIONAL CHART

CHAIRMAN

S.P. Ratnam

CHIEF FINANCIAL
OFFICER AND DIRECTOR
Sri.S.Vijay Shankar

Production HR.Manager Financial

Marketing
Manager K.Sangeetha Manager
Manager
R.Kumarasamy S.Kowsalya
R.Kumar

Assistant Assistant HR
Manager M.Chinnasamy Chief Officer
Assistant M.Selvamani
S.Gurumoorthi
Manager
S.Arunprasath
Supervisor
R.Lakshminarayanan Accountant
Quality check S.Kavipriya
manager Sales officer
M.Naveenkumar S.Gurumoorthi

Employees Auditor
M/s. S.Mahadevan &
Workers Co
Sales Man

14
 CHAPTER - V

5.1 PRODUCTION DEPARTMENT

Introduction

In the early days spinning mill was based on man power and more mechanical systems
drawn by the electric motors and large machines with heavy metallic spikes, canvas lattices, with
spikes rotating over rollers in blow-room. The carding machines with licker-in, cylinder, flats
and doffer rollers with small and pointed needles for combing purposes created more dangerous
situation for the operators to handle.

PRODUCTION DEPARTMENT CHART

Production
Manager
R.Kumarasamy

Assistant
Manager
S.Gurumoorthi

Quality check
manager
M.Naveenkumar

Workers

15
PROCESS OF PRODUCTION

The modern spinning mill is a perfect structure of right working of spinning mill with all
precautionary, quality measures, waste controls and need for quality raw material. One important
observation of modern spinning mill is that there is considerable reduction in departmental
pollution and sweeping wastes in departments. The humidification factor has also played vital
role in maintaining quality of yarn as well as health of the workers. The computerized operations
of machines in maximum departments of spinning mill have also contributed to the productivity
by reducing detention time of machines and maintenance works.

MIXING:

This department plays on important role in this department the various ‘arties of cotton or
mixed according to the length, strength, fitness to get the required cines for yours is bos, sos etc.

This is the first process which is carried out manually by labours. Various types of cotton
which have staple length of required standard suitable for the count of yarn to be spun are mixed
on a floor depending on the capacity and requirement of the plant and the production for the day.

In mixing 1% to 2% soft waste is added to the virgin cotton. Mixing enables the
technicians to reduce the raw material cost for particular yarn. Mixing enables technicians to mix
superior and inferior cotton in a certain proportion as required in the market of the yarn.
Therefore in a spinning mill mixing is a vital process which enables raw material cost reduction
as well as to keep cotton lint with same moisture content. Mixing also enables the cotton lint to
open up easily in the blow-room and carding process. In general practice, a mixing oil is mixed
in water and at every layer of mixing this solution is sprayed over the layer. This is done to

16
reduce the micro dust pollution in the departments. Micro dust and small fibers are the main
components which cause thick and thin places in yarn. To achieve better evenness in yarn the
departmental pollution of short fibers should be reduced to minimum. After mixing the mixed
cotton is carried to blow – room.

DETAIL OF MANUFACTURING

BLOM ROOM:

Removing the fibers and waste cleaners mixed cotton. This may consist of seed coats.
Jutes etc. the output from the process is a uniform and clean sheet like from owlled in a rope and
is know LPP.

CARDING PROCESS:

The laps that are produced in a sheet from are sending to the quality silver. It is the next
stage of carding than goes to the silver into the simplest and sponning. The different between and
comber is production the high quality combined yarn also50% waste reduce them drawing
process.

DRAWING:

It is the fourth stage in the manufacturing the laps that are produced in sheet from are
send to the quality silver. It is next stage of drawing process.

DOUBLING:

Twist the double thread into single thread these are 32 machines being in the doubling
section each machine has 400 spindles.

REELING:

The yarn spindles are owned in hast from the process is called selling. There are 36
machines installed. In the selling section each machine has 80 spindles.

Quality, best services, customer friendly and development are its policies. The Company
is committed Governance in fulfilling its quest for achieving significant growth with profits.

17
PACKING

It is the post process of cotton spinning mill in which the cones of 1kg to 1.5 kgs are
packed with 50 cones to 40 cones to form a bag of 50kgs to 60kgs. The packing of cones needs a
lot of attention so as to eliminate any damages to cones while transportation. The packed bags of
yarn are very well labeled with name of the spinning mill, count of yarn, gross weight and net
weight of yarn packed with different colored inks to give identification to the bags. The post
spinning processes before weaving are reeling and doubling and warping. Reeling is an activity
where the yarn is transformed into hanks over the reeling machine to enable easy dying process.
The doubling of yarns is done with a combination of two to three yarns as per requirement of the
fabric to be woven. Warping is a process under taken at the sizing units to strengthen the yarn
with help of size (wet process) and warping on warp beams.

These are 2 types of packing refer to the activities of designing and producing the
containes (or) warpped for a product.

 CONE PACKING
 YOUR PACKING
 SAMPLE DESIGN

A sample is a subset from the total population. It refers to the techniques or the procedure
the researcher would adopt in selection items from the sample design may as well as lay down
the number of items to be included in the sample. (i.e) the size of sample.

18
 Blow room

Carding

Carded Combed
yarn yarn

Draw Sliver lap

frame machine

Speed Ribbon lap

frame machine

Super lap
Ring frame
machine

Cone Comber
frame machine

Draw
frame

Speed
frame

Ring frame

Cone
winding

The above process is for carded yarns while for combed yarns the process is as follows. Blow –
room – Carding – Draw – frame – Sliver lap – Ribbon lap – Comber – Speed – frame - Ring –

19
frame – Cone – winding. This process channel does not include mixing process which is done
manually and the packing of cones of readymade yarn.

WASTE COLLECTION METHODS

The researcher will now discuss the various methods adopted by the mills to collect the
process wastes of various departments over the ten year period. As is seen of the five mills only
three mills have been working successfully up to now after their inception. So, in this chapter the
researcher will discuss the various automatic collection methods adopted by the mills after
modernization. In general, after modernization in all the three mills namely, M/S Jawahar
Sahakar Sooth Girni, Dhule, M/S Loknayak Jayprakash Narayan Shetkari Sahakari Soot Girni
Ltd. Shahada and M/S Priyadarshini Sahakari Soot Girni Limited, Shirpur, the waste collection
was automatic through various pipelines and in a systematic categorized way as supplied by the
machinery suppliers.

Records and books maintained by the departments

The firm maintains report purchase,

 Production list
 Stock list
 Goods outwards record
 Purchase returns
 Finished goods maintained book

Details of raw material

Raw material for the textile is

 Cotton
 Jute
 Wool raw silk and
 Synthetic goods

The company present’s major variations in the availability of raw material.

20
Sources of raw material

The spinning mill are made from many materials, with four main sources:

 Animal (wool, silk),

 Plant (cotton, flax, jute),
 Mineral (asbestos, glass fibre), and
 Synthetic (nylon, polyester, acrylic).

The first three are natural.

Purchasing pattern

The firm is seasonal basis whichever the credit purchase. credit purchase is a purchase
No need to pay at the time of Purchase but liable to be paid in future.

Location of the store

The store located in udayapati, Salem, Tamilnadu, 636140 and also stock maintain
godown in the factory

Store and warehouse detail

Store and warehouse are located in the firm. Then the warehouse unit product is
excessive then the firm transferred warehouse located in Salem.

Duties of store keeper

1. To maintain stock level of production department

2. To maintain production process of the product
Records and ledger maintained

A record of all materials entering or leaving the bin and balance of material in hand
is kept in this card. These cards are entered by the store-keeper and only the quantities are
recorded. These should tally with the quantities of material as shown in the relevant account in
the stores ledger.

21
Cost of raw material

The firm spend Rs.1, 70, 00,000 their cost of raw materials. It is difference between years
by year. The raw material cost depends on current value.

Mode of purchase

Purchase order for a one-time purchase and payment for line item goods that have a
specific quantity and unit price.

Records and register

The firm maintained records and register books in their production department section. Its
helps to know details of production process in future reference. Its maintain by store keepers.
The firms maintaining books are given below:

1. Receiving inspection
2. Manufacturing inspection.
3. Inspection during assembly.
4. Functional testing.

22
5.2 HUMAN RESOURCE DEPARTMENT

Introduction:

Human resource is the people oriented, hiring, motivating and maintaining the people in
the organization. Human resources is the set of individuals who make up the workforce of an
organization, business sector, or economy. "Human capital" is sometimes used synonymously
with human resources, although human capital typically refers to a more narrow view (i.e., the
knowledge the individuals embody and can contribute to an organization). Likewise, other terms
sometimes used include "manpower", "talent", "labour", or simply "people".

MEANING:

Human resources involve in all sources in each and every management activities. It is a
utilization of human/man power all the areas in organization. i.e supply of human in all sources.

HUMAN RESOURCE DEPARTMENT CHART

HR.Manager
K.Sangeetha

Assistant HR
M.Chinnasamy

Supervisor
R.Lakshminarayanan

Employees

23
NO. OF WORKERS
Male 163
Female 297
Total workers 460

It includes skilled employees, unskilled employees, laborers and technicians.

Shift details

Scheduling Production department functions around a clock by day and night shifts. The
three shifts are

Shift time Male employee Female employee

8 a.m – 5 p.m 62 180
5 p.m – 1 p.m 58 70
1 p.m – 8 p.m 40 47
Total 163 297

If any problem occurs, the management handles it in a friendly manner and no counselors
are involved.

Working hours

Shifts constitutes of 8 hours including 1 hour break. So the industry works around the
clock day and night.

Training facilities and different types of training schemes

Training need analysis is mainly done when a new worker joins the company or when a
new machine is placed then for the machinery handling and maintenance. Training Analysis
(sometimes called Training Needs Analysis (TNA)) is the formal process of identifying the
training gap and its related training need.

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TYPE OF TRAINING

The firm provide on the job training for their employees.

On the job training

Employee training at the place of work while he or she is doing the actual job. Usually a
professional trainer (or sometimes an experienced employee) serves as the course instructor
using hands-on training often supported by formal classroom training.

SELECTION

The company hiring manager will usually ask for feedback from human resources and
other employees who interview the job candidates. The hiring manager may also review her
notes, or decide which candidate would fit best in the open position. Qualifications are only one
consideration. The hiring manager will usually select someone with whom she can work,
whether it is the candidate's personality or work ethic.

RECRUITMENT PROCESS

The firms preferred to recruit people who were already trained and experienced, and the
collapse of another similar local firm would be ``viewed with relish'' as a provider of a ready-
made pool of experienced potential recruits. And in TV, media and tries to attract as much as
calibre people from the outside. The company also have internal recruitment for filling the post
by efficient and skilled workers from the rank , promotion and Corporation have preferred local
candidates who belongs to surroundings.

MONETARY BENEFITS ARE:

Incentives

Compensation can be divided into salary, benefits and incentives. While salary and
benefits must be competitive, incentives are the most likely drivers of attracting and retaining the
best employees in startups.

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Bonus facilities

Individuals are rewarded based on attainment of performance-based goals (individual, team

and/or company) 15% of their salary level.

Leave facility

The firm is beneficiary for causal leave 2 days per month and also 20 days of annual level
then the organization offer festival leave 10 days.

Adequate Salaries

The firm is beneficiary provide adequate salary for the employees. The firm provides
adequate salary based on employees talent and experience. The company encourages their
employees to given adequate salary.

NON –MONETARY BENEFITS

Non-monetary benefits provide by the firm for the following benefits are

Medical facility

The company provides medical facility for the employees it’s like unexpected accident in
the industry and monthly full check for employees.

Drinking water

The firm has given Drinking water facilities for their employees. The firm preference to
water facilities for working employees in the factory and 50 liters provide per day for the
workers.

Transport

The company provides 20 bus services for their working employees. The firm
arrangement the transport without fees

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Insurance

The firm shall be given the provident benefits and insurance mainly who have work in
production department then majority of the employees however the insurance benefits are getting
from manufacturing unit even though remaining department workers are paid their salary level of
percentage (5.7%) premium by the firm.

Promotion

The firm motivates their employees based on promotions. The promotion activities are
preferred to their talents and working capacity and word of mouth, etc.

Canteen

The firm provides canteen facilities for their workers. Primary food facilities arrange by
every day price of each food items Rs.30 only/-.

Facilities for employees:

 Canteen facilities to the needs of employees.

 Tea, Snacks and Foods are provided for the employees.
 The bonuses are also given to the employees.

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5.3 MARKETING DEPARTMENT

Introduction

Now a day the practical knowledge is the essential in the competitive world. We can
gather theoretical knowledge by reading books but it is not sufficient to gather practical
knowledge.

The report is a vital part of BBA program. It helps to link between theoretical and
practical knowledge. Marketing is a social and managerial process by which individuals and
organization obtain what they need and want through creating and exchanging value with others.
Marketing is the process by which companies create value for customers and build strong
customer relationships in order to capture value from customer in return.

MARKETING DEPARTMENT CHART

Marketing
Manager
R.Kumar

Assistant
Manager
S.Arunprasath

Sales officer
S.Gurumoorthi

Sales Man

28
 COMPETITORS

1. Dharanidara Spinning Mills (P) Ltd.

104, Permanoor Main Road, Salem, Tamil Nadu, 636007, India

2. K.T. Spinning Mills (P) Ltd.

No: 42, Vaiyapuri Mudali Street, Ammapet, Salem, Tamil Nadu, 636003, India

3. Salem Kandaa Textile Mills Private Limited

No: 50, New Trichy Branch Road, Gugai, Salem, Tamil Nadu 636006.Tamilnadu, India.

4. Thambbi Modern Spinning Mills Limited

Omalur Road, Jagir Ammapalayam, Salem – 636302

DIFFERENT TYPE OF PRODUCTS

Products Quantity
100% COTTON YARN
Single yarn - Weaving - Carded Ne 20/1 to Ne 40/1, Ne 60/1 & Ne 80/1
Combed Ne 20/1 to Ne 80/1
Knitting - Carded Ne 20/1 to Ne 40/1
Combed Compact Yarn Ne 20/1 to Ne 80/1
Gassed Mercerised Yarn Ne 20/2 to Ne 80/2
Double yarn - Weaving - Carded Ne 40/2, Ne 60/2, Ne 70/2, Ne 80/2
100% POLYSTER
Ne 20/1 to Ne 80/1
Single Yarn

Combed Ne 20/2 to Ne 80/2

100% VISCOSE
 Single Yarn Ne 30/1 to Ne 60/1
 Double Yarn Ne 30/2 to Ne 60/2

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ADVERTISING

Want ads describe the job and the benefits, identify the employer, and tell those who are
interested how to apply .They are most familiar form of employment advertising .for highly
specialist requites, ads may be placed in professional journal or out of town newspaper in areas
with high concentration of the desired skills

MARKETING CHANNEL

The channel is done by:

 Advertising
Media
Newspaper
 Merchandiser
Merchandiser may sell the goods to shop and sell to whole saler.

EXPORT DETAIL

They are export their products in foreign markets

1. Malaysia
2. China
3. Singapore

DOMESTIC AREAS

The firm sales their products in Tamilnadu

1. Salem
2. Tirupur
3. Erode
4. Coimbatore

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Various offer provided by the company to consumers

The firm is sustainable offer and discount about

1. Bulk purchase

2. New launch product

3. coupons

4. freebies

5. loss leaders

6. product sample

31
5.4 FINANCE DEPARTMENT

Introduction

Finance is the life blood of the industrial units. The sources of finance includes the own
funds borrowings from friends and relations, loan from public institutions, borrowing from
private lenders, hire purchase etc. For instance, economics is considered a pillar of financial
science, where both macro and microeconomic factors affect virtually levels of financial
decisions and outcomes at all levels. Additionally, the study of behavioral finance aims to study
the more "human" side of a science considered by most to be highly mathematical. This
illustrates that the study of finance can, at times, be more art than science.- the management of
money and credit and banking and investments.

FINANCE DEPARTMENT CHART

Financial
Manager
S.Kowsalya

Chief Officer
M.Selvamani

Accountant
S.Kavipriya

Auditor
M/s. S.Mahadevan & Co

32
 Finance Department is the backbone of every organization. Finance Department is
composed of two departments such as

1 Account Department
2 Internal Audit Department

Account Department

The Account Department is responsible for the entire accounting process of the
organization regarding the recording of transactions, designing the accounting system,
preparation of financial statements and computer application to the accounting process.

Functions of the Account Department

 The main function of the accounting department is to record the business

transactions.
 This department also designs the accounting policies.
 The department is responsible to maintain the books of accounts.
 This department also prepares the financial statements and offer these to the
shareholders
Thus by studying the above functions it is clear that the finance department is restricted up
to the recording and maintaining the account data. The directors control all the financial matters.
Chief Financial Officer heads this department.

The setup of this department is as under:

1. Chief Financial Officer

2. Manager Accounts
3. Cash Manager
4. Accountant
5. Data Entry Operator

33
The Account Department is mainly divided into the following three sections:

1. Stores section
2. Salaries and Wages Section
3. General Accounting Section

Store Section

Store section is mainly concerned with store accounting. The Chief Accountant heads this
section. The major responsibilities of this section are,

1. To record all the store purchases

2. To record all the store issues

3. To prepare various reports relating to store i.e. material consumption report, party
wise purchase report.

4. To keep a check on all stores by surprisingly checking their record and physical
existence of items stored.

Because of the above-mentioned duties, this section has a key position in the company. No
payment is made to anybody unless it is checked and verified by this section.

Salaries and Wages Section

This section is responsible of making payment to the employees. This section plays an
important role in safeguarding the interest of the company as well as employees.

This section also ensures all the labor laws. Certain laws relating to the company are as
under:

Leave Procedure

As for as leaves are concerned, there are three types of leaves:

Sick Leaves

Sick leaves are eight in a year.

34
Casual Leaves

Casual leaves are ten in each year.

Annual or Earned Leaves

There are twelve earned leaves. Companies rules do not allow any employee to do four
days leave without application. In case if an employee does so then he cannot avail annual
leaves.

INVESTMENT

Company made a public issue of 11, 36,500 equity shares of Rs.10/- each at a premium
of Rs.40/- per share aggregating to Rs.568.25 lakhs in the year 2017. The issue was over
subscribed and the shares were fully allotted. At present the paid up capital of the Company is
Rs.3,84,92,500 against the Authorised Capital of Rs.5 crores. The Company's shares are listed in
the Bombay Stock Exchange.

SOURCES OF FINANCE

Our company generates money by selling part of itself in the form of shares to investors,
which is known as equity funding.

BANKERS DETAIL

1. KARUR VYSYA BANK – Salem

2. STATE BANK OF INDIA - Salem
3. INDIAN OVERSEAS BANK - Salem
4. FEDERAL BANK - Salem

AUDITOR

M/s. S.MAHADEVAN & CO., Cost Accountants Coimbatore.

35
Records, registers and books maintained in the department

The following books are maintained in accounts department:

 General journal
 Cash book
 General ledger
 Purchase book
 Sales book
 Bank book
 Petty cash book
 Trial balance

SALES DEPARTMENT

Sales Department is one of the most important in any business. All work is done for
selling. So Sealing is the vital character in every business. The structure of sales department is as
under.

The following activities are performed in the local sales department.

1 The Directors receives orders mainly by phone.

2 Directors evaluate the capabilities to fulfill the order by consulting daily stock
report from mills.
3 Directors give the instructions to local sales managers that transfer the
information on local sales contract slip.
4 Before issuing/sending contract slip. Sales manager checks the selling limits of
the particular party/broker, and discuss the matter with the Director if it is
exceeding the selling limits.
5 Sales Department make three copies of Delivery Order singed by the Director
6 Original copy is dispatched to the party and keeps one copy for record and one
copy to account section.

36
 CHAPTER - VI

SWOT ANALYSIS

Strength

1. Spinning Mill Cotton Mills has a management team that prides itself with vast
knowledge in the textile industry, which makes the company produce products that
are required in the market.
2. Availability of skilled manpower at a low cost provides an advantage for the company
to reduce its expenditure.
3. Sufficient and abundant raw material helps the company maintain its production flow
and hence maintain market supply and consumer satisfaction.
4. Investment in cutting edge technological machinery ensures that the products
supplied to customers meet the desired international standards.
5. The company’s profits and financial investment provides a stable cash flow for
expansion and diversification in other related fields.
6. The activity of the Rupee against the dollar, has positively affected the Indian cotton
industry, opening up space for companies to competitively trade in the global market.

Weakness

1. Investment in advanced technological means of production requires some highly

trained personnel which come at a cost for the company due to the scarcity of trained
machine operators and maintainers.
2. Changing global prices on cotton products might affect production costs resulting to
extra costs for the company.

Opportunities

1. The growing fashion industry directly affects the textile industry which is an advantage
for the cotton industry and cotton products.
2. The favorable government laws on Foreign Direct Investment are favorable for the
growth of the cotton industry.

37
 3. The growth of the domestic and foreign market for cotton products is sufficient
opportunity for growth and expansion of the company.
4. Availability of good cotton and at favourable prices around the plant reduces on cost of
raw material acquisition.
5. The growing global need for cotton has led to product diversification and development.
6. The availability of good quality cotton in India could make the country gain a significant
global market share, expanding the market for yarn producers to sell their products to
other countries.
7. Domestic retailing is yet to be exploited yet there is a big potential for growth in the
sector

Threat

1. Balance between quality and pricing is a challenge but this is slowly being controlled by
the growing reputation that Indian cotton is of good quality.
2. Unfavourable labour laws have also proved a challenge but the company has been a big
contributor on Community Social Responsibility by building a medical clinic that
provides free healthcare for the workers and their immediate family members.
3. High interest rates have made it difficult to access bank loans for expansion.
4. High cost of power and other indirect tax tariffs for raw materials has also increased the
cost of production for the company

38
 CHAPTER – VII

CONCLUSION

Thus I learnt about the functions of each department and process. This gave a practical
experience to know what happening in the organization and learnt the various HR functions
which are very useful for my career.

 Employees are well treated by their immediate supervisors.

 The team spirit is of high order.
 The overall performance of the employees is good, but still the company can
adopt advanced technique for improving and rating among the employees.
 If the company will conduct seminars discussions, towards their employees work
means the perform even better then past.

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3. Christiansen, T., (2013) “Summary of the panel‟s evaluation of the organization and
financing of the Danish health care system”, Health Policy, Vol. 59, 173 - 180.
4. Dadashian, F., Shakibfar, S. and Fazel Zarandi, M.H., (2007) “Strategic alliance for core
competencies improvement in textile industries”, International Journal of Management
Science and Engineering Management, Vol. 2 (2), 98-107.
5. Edward Bernroider, (2015) “Factors in SWOT analysis applied to micro, small-to-
medium, and large software enterprises: An Austrian study”, European Management
Journal, Vol. 20 (5), 562 - 573.
6. Glaister, K.W. and Falshaw, R.J., (2018) “Strategic planning: Still going strong?”, Long
Range Planning, Vol. 32 (1), 107–116

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