CHAPTER 1

1.1 INDUSTRY PROFILE

The Indian Valves Industry has seen significant growth over past decade, successfully catering to the
rising domestic demand in terms of capacity and product capability, while also establishing itself as
adominant force in the global valves market. The country has developed an ecosystem for valves
manufacturing, which has led to major global companies setting up oper-ations in the country.
Withinitiatives being rolled out to foster manufacturing in the country and major projects announced to
spur growth, India is in the limelight for its manufacturing capabilities andas a major market for valves.
Indian Valves manufacturers, who are eager to expand glob-ally, and global companies trying to tap into
the resources available in the country to useit also as an R&D and sourcinghub apart from catering to the
domestic market sets the stage for the next round of growth in the sector.

Indian Valves Market Outlook

The Indian Industrial Valves market was estimated at INR10,100 Cr for 2014-15. Isolation valves (also
called On-Off valves) account for majority of the demand in the Indian market, followed by control
valves .The contribution of control valves will increase in the coming years with new regulations on
safety and the rising importance of continuous monitoring. Supply of severe service and other specially
engineered valves in India is lesser than the global average due to lack of off-shore drilling and
exploration activities .However, there is a steady progress in development and manufacturing of valves
for super-critical power plants and nuclear power plants .The oil and gas (O&G) industry constitutes
majority of the demand for valves in the Indi-an market, with most valves being consumed by the O&G
downstream sector. Majority of the valves exported also cater to the global O&G downstream sector. The
demand for valves in the power generation industry has not reached its full potential due to slower
execution of projects in the sector. The Water and Wastewater Industry in India has been witnessing
significant growth over the last 5 years and the demand for valves in this industry will continue to rise.
Supply of valves to process industries such as sugar, paper and pulp, and metals and mining has been
slack due to the lack in pace of expansion activities in these sectors. The demand for valves in pipelines
for crude and LNG transportation will witness a huge demand as a robust pipeline network is being laid
throughout India.

1
Competitive Scenario

The Indian industrial valves market is highly fragmented with close to 600 companies supplying valves.
However, the industry is set for consolidation as large multinational valve suppliers are in the process of
acquiring smaller companies to exploit the latter’s strong distribution and supply chain network. The
increasing market participation has a direct impact on the margins of the manufacturers. Frost & Sullivan
estimates the market is likely to witness a compound annual growth rate (CAGR) of around 6 percent
from 2015 to 2020.Indian valve manufacturers have slowly and steadily progressed into supplying valves
to the global market and have achieved a significant amount of success. Indian valve manufacturers have
started expanding their footprint across the globe and are expected to play huge role in establishing a
global supply network.

Policy Support and User Dynamics

With an aim to increase the share of the manufacturing sector to the country’s GDP, the Government has
come up with policies that will enhance the value of Indian manufacturing. The Indian valves business
will not only benefit from manufacturing related initiatives but also from the policies created to smoothen
execution of major projects and create phased urbanization. The Namami Ganga Programaims to invest
INR 20,000 Crover the next five years to conserve the Ganga. Sewage treatment plants are to be setup
along the course of the river; industrial water treatmentfor plants along the river will become a necessity.
The Indian Government plans to develop100 Smart Cities with integrated water treatment and
distribution, and power and waste management solutions, which will further spur the demand for valves
and advanced con trol solutions. India has been trying to re-duce its dependence on fossilfuels, for which
there has been a large-scale emphasison solar power generation .Stage 2 of the Jawaharlal Nehru National
Solar Mission aimsto produce 20,000 MW of grid connected solar power. Concentrated solar power
plants provide significant opportunity for valve suppliers. An investment of INR 80,000 Cr is envisaged
to upgrade re neries inorder to comply with the Euro VI equivalent emission norms by 2020, which will
create a huge demand for efficient valve systems and valves with advanced material chemistry. The
“Make-in-India” initiative will facilitate easier set-up and expansion of valve manufacturing.

2
Oil and Gas
The recent successful commissioning of Bharat Oman Refineries Limited (BORL) and HPCL-Mittal
Energy Limited(HMEL) has influenced the state-owned r fineries to invest in better technology through
the similar model. Public and Private sector in-vestments, to increase the import capacity of LNG and to
develop integrated pipeline network, will create a substantial demand for valves.

Chemical and Fertilizers

Positive developments in India’s negotiations with Qatar and Iran for lique fied natura lgas
(LNG) will compensate the shortage of natural gas needed by fertilizer manufacturers.

Water and Wastewater

Steps to introduce desalinaion as a source of domestic water supply and as an inputfor Power
plants and O& Ginstallations along the coast, increased activity on distribution, and growing significance
of water treatment have made this sector attractive for valves. Efforts to implement integrated waste water
management solutions to cap pollution and creation of sustainable factories will also increase the
requirement of valves for water treatment

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 1.2 INDRODUCTION TO COMPANY

They say the best inventions start with a sudden flash of illumination. That’s exactly what happened when
A.K. Velan first came up with the idea for a new steam trap a few months after he arrived in Canada in
1949 from Soviet-dominated Czechoslovakia. More than six decades later, that same innovative and
entrepreneurial spirit continues to flourish in a company that has a proven portfolio of top-quality valves
installed in industrial applications worldwide.

Velan is one of the world's leading manufacturers of industrial steel valves, recognized as a standard-
bearer in quality and innovation. The company was founded by acclaimed inventor and entrepreneur A.K.
Velan in 1950, and continues to leverage advanced engineering capabilities and innovation to create hard-
working valves that meet critical industrial needs in the areas of power generation, chemical and
petrochemical, oil and gas, pulp and paper, mining, cryogenic, and ship-building industries.

Velan's many product lines are grouped into the broad categories of: gate, globe, and check valves;
quarter-turn valves; specialty valves; and steam traps. Within these product groups, Velan offers one of
the most comprehensive product offerings available from any valve manufacturer, in sizes varying from
1/2” to 60”, with pressure ratings from vacuum to over 10,000 psi, temperature ratings of up to 1,500 °F,
and availability of many material and design options. All of Velan’s valves are designed and
manufactured with quality as a priority, and incorporate many unique design features for environmentally
friendly performance, simple maintenance, and reliable service.

Velan valves have an extremely broad installation base and are approved by major companies worldwide.
In addition, Velan has been an active and trusted name in the nuclear industry since its inception, and has
supplied valves to the vast majority of nuclear power stations in the world. We are currently involved in
the global renaissance of nuclear power, focusing our design, applications, and manufacturing resources
on a market that projects a growing number of units to be built.

Today, the company has a global network of 14 specialized manufacturing plants, including four in
Canada and the US, five in Europe, and five in Asia. The company’s global network also includes four
stocking distribution centers and hundreds of distributors and service shops worldwide.

We owe much of our success to the capability, experience, and dedication of our employees who have
made quality and innovation the cornerstone of Velan since its inception. We concentrate on one business
—designing, manufacturing and marketing advanced technology steel valves in a broad range of types

4
and sizes. That’s why we can truly claim: Velan. Quality that lasts. Velan is one of the world's leading
manufacturers of industrial steel valves, recognized as a standard-bearer in quality and innovation. The
company was founded by acclaimed inventor and entrepreneur A.K. Velan in 1950, and continues to
leverage advanced engineering capabilities and innovation to create hard-working valves that meet
critical industrial needs in the areas of power generation, chemical and petrochemical, oil and gas, pulp
and paper, mining, cryogenic, and ship-building industries.

Velan's many product lines are grouped into the broad categories of: gate, globe, and check valves;
quarter-turn valves; specialty valves; and steam traps. Within these product groups, Velan offers one of
the most comprehensive product offerings available from any valve manufacturer, in sizes varying from
1/2” to 60”, with pressure ratings from vacuum to over 10,000 psi, temperature ratings of up to 1,500 °F,
and availability of many material and design options. All of Velan’s valves are designed and
manufactured with quality as a priority, and incorporate many unique design features for environmentally
friendly performance, simple maintenance, and reliable service.

Velan valves have an extremely broad installation base and are approved by major companies worldwide.
In addition, Velan has been an active and trusted name in the nuclear industry since its inception, and has
supplied valves to the vast majority of nuclear power stations in the world. We are currently involved in
the global renaissance of nuclear power, focusing our design, applications, and manufacturing resources
on a market that projects a growing number of units to be built.

Today, the company has a global network of 14 specialized manufacturing plants, including four in
Canada and the US, five in Europe, and five in Asia. The company’s global network also includes four
stocking distribution centers and hundreds of distributors and service shops worldwide.

We owe much of our success to the capability, experience, and dedication of our employees who have
made quality and innovation the cornerstone of Velan since its inception. We concentrate on one business
—designing, manufacturing and marketing advanced technology steel valves in a broad range of types
and sizes. That’s why we can truly claim: Velan. Quality that lasts.

5
Global network

 13 production facilities
o 4 plants in North America
o 4 plants in Europe
o 5 plants in Asia
 2 stocking distribution centers
 Hundreds of distributors worldwide
 Over 60 service shops worldwide

A Clear Focus on Chosen Markets

 Dedicated focus on customer and industry needs

 Superior after sales service
 Strong understanding of competition
 Entirely focused on industrial valves

Product line

A world-leading range of cast and forged steel gate, globe, check, ball, triple-offset, knife gate,
highly engineered severe service valves, and steam traps offering superior performance across all
major industrial applications.

Primary industries served

 Fossil, nuclear, and cogeneration power

 Oil and gas
 Refining and petrochemicals
 Chemicals and pharmaceutical
 LNG and cryogenics
 Marine
 HVAC
 Mining
 Water and wastewater

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 Pulp and paper
 Subsea

Quality

 All major approvals

o ASME N stamp and NPT for nuclear valves (since 1970)
o ISO 9001 (since 1991), currently certified to ISO 9001:2008
o PED
o SIL certificates
o GOST (TR and RTN)
o API 6A and API 6D
o TA-Luft
o Quality programs fully compliant with ISO-9001, NCA 4000, ASME NQA-1 and 10
CFR 50 Appendix B, surveyed by ASME and audited by NUPIC, Northrop Grumman Newport
News, DCMA, utilities, architect/engineers, and other organizations from around the world
 Total Process Improvement Program, including Lean Manufacturing and Six Sigma

Production capabilities

 Leader in automated production

o CNC machines
o Multi-station transfer machines

Velan value

 Strong management team, stable company

 ORG
 Products proven to offer:
o Low emissions
o Easy maintenance
o Long and reliable service
o Low total cost of ownership
o Quality that lasts

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Vision

Sustainable Success is driven by Excellence in Valve Engineering

Mission

Hyper Valves will create sustainable success through technical superiority and brand development with a
clear focus on safety, continuous improvement, and operational effectiveness while exceeding
commitments to customers in delivery, reliability and support.

Strategic Direction

To deliver our Vision and Mission we must ensure that our customers value the difference in technical
superiority and brand recognition of Scorpio Valves products and service versus competition through.

Product and Service Differentiation

 Provision of innovative solutions

 Superior quality with proactive support

Maximizing Effectiveness

 Operational excellence
 Continuous improvement
 Team working & Leadership

Commitment to quality

At Velan, the concept of “Quality that lasts” is more than a corporate slogan, it’s a daily business
imperative that drives our design, production, testing, and service. The Velan corporate philosophy is to
bring to the market new and innovative valve designs with special emphasis on quality, safety, ease of
operation, simple in-line maintenance and -- most of all -- long service life. All this, combined with the
use of high-quality materials, adherence to the strictest design criteria, advanced manufacturing
technology, and automation in all stages of manufacturing, ensures the highest possible quality at a
competitive price.

8
For our Quality Assurance certificates(ASME-N and NPT, ISO-9001, PED, SIL, API-6D, etc.)

Social Responsibility

The Velan name has long been synonymous with giving back to the community.  The Velan family, the
company itself, and the Velan Foundation have contributed to countless philanthropic projects in Canada
and overseas. In Montreal, they were involved in setting up the multi-service centre La rue des Femmes,
which includes a shelter called La Maison Olga (named after A.K. Velan’s wife), and in financing a
pavilion at Camp Papillon for children with special needs. Since 1981, a Velan Award has been discerned
annually to an outstanding Canadian for humanitarian activities abroad.

 
This philanthropic tradition has likewise continued throughout all generations of the Velan family -- and
amongst Velan employees as well. For example, Velan employees at the Montreal headquarters and other
Quebec-based plants hold an annual Centraide/United Way campaign, in which they raise money for this
important national charity. Velan in turn matches all employee donations.
 
As Tom Velan, CEO of the company, states, “We are fortunate to run a successful business,
headquartered in a safe and stable country, and we very much believe in passing our good fortune on to
others whenever possible. Regardless of whether we’re acting as individuals or as corporate citizens,
philanthropy is very much a way of life here at Velan.”
We hope to present both the future and the traditions of a well established, business-focused organization
related to the Oil / Steam / Gas / Petrochemical industry in India. We are founded on the vision of
providing our clients with a competitive edge. Our commitment to customer satisfaction is the key of our
success. I work closely with the executive management team in the areas of structuring and negotiating
transactions and implementing new business models in order to assure our client that we are dedicated to
the achievement of excellence in all our activities. We believe our customers have the right to world-class
products and service. We strive to insure that the products and services we supply confirm to customer
requirements. It is our intention to be able to deliver the most affordable, reliable, speedy.

Our clients, our culture and the market structure are our essential element. We know success depends on
building strong relationships with our clients. Building this trust in the course of providing excellent,
creative, timely profit making and cost-reductoin solutions to business issues. We focus on the business

9
goals of our clients. Because effective business begins with understanding, we do all we can to
understand our client’s needs, their ability and their challenges.

India today boasts a well-diversified economy, with an internationally significant industrial and
commercial base. Being one of the pioneer entities in this field in, the year 2001 was an excellent year for
velan Engineers Ltd.

There were number of factors contributed to the company’s excellent financial performance. Furthermore
we can anticipate major growth opportunity in view of the oil exploration rights granted recently to
Chevron&Patroness.I would like to take this opportunity to extend my sincere gratitude and appreciation
to the members of the board and mention with much pride their valuable advice and support throughout
the year.

My sincere appreciation also goes to my all staff members who assept the challenges we experienced with
determination and dedication, exerting painstaking efforts for the continued success of our organization.
Particular mention is due to the work teams responsible for developing and implementing the growth of
the Company

ASLAM FAZLURREHMAN KAGDI – MANAGING DIRECTOR, CFO, NON INDEPENDENT

DIRECTOR

ASAD FAZLURREHMAN KAGDI – MANAGING DIRECTOR, NON INDEPENDENT DIRECTOR

MOHAMED ZAKARIA ASAD KAGDI – NON INDEPENDENT DIRECTOR

Velan valves Ltd. works hard to faster an environment that challenges, motivates and rewards these
professional people. Innovative performance and team work are deeply held in corporate values, therefore
these values has been reflected on our employees behaviors.

Our employees are hard working, innovative thinkers with total commitment to service our clients,
consistently coming up with fresh and unprecedented ideas that, once in progress, will keep our customers
with an up-to-date expectation. We also encourage a spirit of friendliness & co-operation between our
staff.

All our new employees receive our Foundation Course-in-house training for their first six months. And
since the greatest challenge for organization was the staff training, therefore we focus on tailoring-in-
house course by qualified trainer and / or by supplier’s trainer to match the specific requirements of our
Staff in various area such as sales techniques and technical standards, IT training on technology-driven

10
change, internet and telephone connections, These courses are conducted on fully interactive on-job
training for the ultimate development of our staff, which is an important element of our continues success.

Our rebust appraisal system, which is consistent across all our operations, allows every employee to set
personal goals and realise their potential and we are committed to training at every level, apprenticeships
to business management

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 COMPANY LOCATION

Link: https:
//www.google.co.in/maps/place/Velan+Valves/@11.1110338,77.1284525,1631m/data=!3m1!
1e3!4m5!3m4!1s0x0:0x14e76ee6cb6cd50c!8m2!3d11.1153043!4d77.1323279
.

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 CHAPTER 2

2.0 ORGANISATION CHART

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 CHAPTER 3

3.0 FUNCTIONAL DEPARTMENT

 Production department

 Purchase department

 Quality control department

 Human resource department

 Sales department

 Accounts department

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 3.1Production department

STANDARDISATION

All Products are manufactured in accordance with the guidelines set by standardization institute all over
the world such as the Indian Boiler Regulation (IBR), Manufacturers Standardization Society (MSS),
American Petroleum Institute (API), American Society of Mechanical Engineers (ASME).

PROCUREMENT OF RAW MATERIALS

In the manufacturing process we require steel casting of various grades, stainless stell round bars, forging,
hardware (nuts & bolts), gaskets, paints and also packing materials. We purchase all the raw materials
from the approved suppliers.

QUALITY ASSURANCE

All raw materials are checked by our Internal Quality Assurance Department prior to infusion into the
manufacturing process. For example, when we receive steel castings and rods, it is checked and then
possed on to stores with an “INWARD PASSED” sign and stamp, if it is rejected it is sent back to the
supplier with a G.I.R. note.

MACHINING

The raw materials is issued to the machine shop for machining through material requisition slips. Valve
body, bonnet, valve seat, spindles etc. are machined on centre lathe machine, after which all the
components are checked by vernier callipers or micrometers.

IN-PROCESS TESTING

it is found to be OK dimensionally and visually, the valve body and bonet are sent for Hydrostatic Testing
to the testing yard and other components are sent to the fitting / assembling department. All the bodies
and bonnets are tested on Motorised Hydrostatic Pumps or on Hand Operated Pumps. A pressure test is
carried out as per relevant world standards. The theory being, when the body or bonnet is under pressure
there should not be any leakage or drops of the testing and fluid from any portion of the bodies and
bonnets. If there is any leakage observed, it is rejected and sent back to the foundries.

15
ASSEMBLY

The body and bonnet which are hydrostatically OK are sent to the fitting shop for assembly, duly handled
with care so that there are no scratches on the machine surfaces. In the fitting shop, body and bonnets are
drilled on drill machine with the help of jigs and fixtures for uniformity and interchangeability by Quality
Assurance Department and passed, or sent back.

LAPPING

In some cases lapping of the seats and plugs / other components is done prior to fitting, whereas in other
cases lapping is done after fitting.

TESTING

After assembly the new complete valve, is sent for hydrostatic testing again. If no leakage is observed, as
per the relevant standards, it is sent to the finishing department.

FINISHING/PAINTING

Here the valve body surface is debarred and finished by sanders and flexible shaft grinders for better
appearance and smooth finishing. One coat of corrosion resistant primer (red oxide) is sprayed, and if any
uneven surface is observed a high temperature putty is used, after which selected colours for different
types of valves are sprayed twice for a superior surface look.Here it should be noted that valves which are
manufactured for IBR approval are not painted initially. They are offered for inspection by the concerned
inspectors without paint, but in a completely assembled stage. The IBR number allotted is then punched
after inspection, and paintings is done only after this.

FINAL INSPECTION

After painting, final inspection is done by our Quality Assurance Department / Third Party Inspection
Agency, whose responsibility now is to co-relate and check all records relating to the valve concerned.
Special attention is paid to co-relate all the serial numbers and in-process quality checks, a valve serial
number and then passed on to the packing department.

PACKING

In the packing department all the valves are covered with polythene bags and placed into wooden case,
with a bed of grass for non-damage of valves. It is then covered and nailed with a packing note and valve
users manual / maintenance guidelines for the despatch department.

16
DESPATCH

The despatch department checks all the details mentioned in the packing note and the purchase order, and
send the package to the go down or to the transporter

17
.

TYPES

1) GATE VALVE
2) GLOBE VALVE
3) CHECK VALVE

18
 4) BUTTERFLY VALVE

1) Gate Valves
a) Welded-end gate valves manufactured to ANSI B16.34, Valves - Flanged and Buttwelding
End Steel, Nickel Alloy, and Other Special Alloys, may be substituted for API standard 600
weld end valves listed in Appendix 1 if the manufacturer provides certification of the
following:
The gate closure system will not be damaged by the hydrostatic test pressure
when the valve is closed;
The pressure-containing components are designed in accordance with
ASME B31.3;
The seats were tested in accordance with API standard 598, Valve Inspection and
Test.
b) The manufacturer shall guarantee that the body and weld ends of gate valves have the
required corrosion allowances.
c) Gate valves shall meet the high-pressure closure test requirements of API Standard 598.

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 FEATURES

 OS & Y type , bolted bonnet

 Forged Steel design for high pressure.
 Fabricated option for specific requirement.
 Low operating Torque
 Design std:API 600 :2015 ,Testing as per API 598:2016
 Face to face diamensions as per ANSI b.16.10
 Flange Drilling as per ANSI B 16.5, RF serreted, BS 4504 ,BS10 and other available drilling
standards
 Valves with back seat arragement
 Deep stuffing box to accomodate more packing rings

2) Globe Valves
a) Globe valves shall have a bolted bonnet with confined gasket. Teflon gasket material is not
permitted.
b) Globe valves having conventional plug and seat rings shall meet the following minimum
requirements:
Single-seated valves shall be top and bottom guided or top guided only, providing
the guide post has sufficient diameter to provide lateral stability to the valve plug.
Plug and seat rings shall be martensitic or precipitation hardened stainless steel
with a hardness suitable for the intended service, or Stellite.
For services other than those containing hydrogen sulfide, guide material shall be
350 HB (Brinell Hardness) minimum, with a differential hardness not less than 50
HB between sliding surfaces.
The valve stem shall be threaded and pinned to the valve plug

20
 FEATURES

 OS & Y type , bolted bonnet

 Design std:BS/1873/ANSI B 16.34,Testing as per BS 6755 Part1
 Low operating torque
 Face to face diamensionsas per ANSI B.16.10/BS 2080
 Flange Drilling as per ANSI B 16.5 RF serreted,BS 4504 ,BS 10 and other available drilling
standards
 Valves with back seat arrangement
 Deep stuffing box to accomodate more packing rings
 Pluge type disc

3) CHECK VALVE

We are manufacturer of Globe Valve or Non-return valve which usually permits circulation via that in
only one direction. Examine valves are two-port valves, signifies they’ve two openings in body, one
regarding smooth to enter and the other regarding smooth to leave. There are numerous forms of verify
valves found in a wide variety of applications. Despite the fact that They come in a wide range of
measurements

21
4) Butterfly Valves

Butterfly Valves are Fabricated Design with lens Disc. Double eccentric positioning of the disc permits
smooth raising and resting of the disc-seal from / on the sealing surface.They have double sealing system
on the shafts and special profile of the disc seal for positive, long term tightness with standard seals
materials BTV valves may be used in liquid and gaseous service for temperatureupto 150 degree C

22
FEATURES

 Design Std.: BS5155, Testing Std.: BS 6755 Part 1

 Dimension ASNF B 16.10 and BS EN 558:200A.

 Positive Bi Directional shutoff at full rating
 Low Operating Torque.
 Suitable to mount between ANSI / BS / DIN flanges.
 Replaceable liner / Seat
 Positively Locked Shafts
 Lever with Throtting Plate for different positions.
 Pressure rating – PN10/PN16.
 Temp. Range : -20 to +120 degree C.

23
 3.2 PURCHASING DEPARTMENT

The functions of purchasing department are varied and wide which are based upon different approaches.
The purchasing activities may be divided into those that are always assigned to the purchasing department
and those that are sometimes assigned to some other department. The followings are some of the
important functions which are necessary to be performed.

1. Receiving indents

2. Assessment of demand or description of need

3. Selection of sources of supply

4. Receiving of quotation

5. Placing order

6. Making delivery at the proper time by following up the orders.

7. Verification of invoices

8. Inspection of incoming materials

9. Meeting transport requirements of incoming and outgoing materials

10. Maintaining purchasing records and files

11. Reporting to top management

12. Developing coordination among other departments

13. Creating goodwill of the organisation in the eyes of the suppliers.

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1. Receiving indents:
The first and foremost function of purchasing is receiving demand/requisition of material from different
departments of the organisation, such as from production, stores, maintenance, administrative, drawing
office, planning, tool room, packing, painting, heat treatment etc.

After receiving the indent from users’ departments it examines in details and takes action according to the
need and urgency of any item. This is called ‘recognition of need’. Sometimes, needs can be met by
transfer of a stock of one department to another department. In other cases, the reserve stock or the stocks
kept in bank can be utilized i.e., pledged stock with bank.

2.  Assessment of demand or description of need:

After recognising the need with appropriate description, i.e., qualitative as well as quantitative, is
necessary for the sound and successful purchasing. An improperly described demand can cost heavily
money-wise as well as time-wise.

The real problem arises when the order is placed for want of preciseness in the description of goods
needed, the items are received and these are not acceptable to the user department and it also becomes
difficult to convince the suppliers to return the goods in case of faulty supplies. Therefore, purchasing
department must have adequate knowledge of items being purchased to be able to secure full description.

The purchasing department should not have such alternative purchases of commodities, which are not
available easily, on their own responsibility or at a lower cost unless and until it gets the consent from the
user department.

In a nutshell, it is recommended that the description of items for purchase on the part of indenter,
purchaser and seller should be quite clear and without ambiguity to promote harmony in an organisation.

3. Selection of sources of supply:

Most important function of a purchasing department or officer is the selection of the sources for the
requisitioned items of stores. There are different sources of supply which have no similarity between
them.

25
For majority of items, selection of one of the vendors should be made. While selecting the item, the
purchase officer has to see whether the item to be purchased is on a regular basis i.e., it is being purchased
time and again or it is a seldom purchase on non-recurring basis.

Whenever the items are to be bought from single manufacturer, such as branded or patented item, there is
no difficulty in the selection of the sources of supply; the order can be placed with the party according to
terms and conditions of their sale.

Selection of source of supply requires the services of shrewd purchasing officer who can keep pace with
policies of the organisation and market from where the materials have to be purchased.

4.  Receiving of quotation:

As soon as the purchase requisition is received in the purchase division, sources of supply will be located;
a decision is then taken in respect of the method of tendering/limitation of quotations from prospective
suppliers.

Prices are also ascertained by preparing a comparative statement with the help of either of the following
documents supplied either by the supplier or taken from the previous records of advertisements, like:

(a) Catalogues, price lists etc.

(b) Telephonic quotations.

(c) Previous purchase records.

(d) Quotation letter or tender i.e., letter of inquiry.

(e) Sample and related price cards.

(f) Negotiation between suppliers and the purchase department like catalogue, price lists etc.

It is in the interest of purchasing department to keep this information up to date. Even for the items which
are being purchased on a regular basis, the purchasing section should invite tenders and know full well
the market price. It will ensure that prices being paid to the existing vendor are competitive.

26
5.  Placing order:
Placing a purchase order is the next function of purchasing officer. Since purchase order is a legal binding
between the two parties, it should always be accurate, clear and acceptable to both. The purchase order
should contain the following particulars:

(a) Description and specifications of the material.

(b) Quantity order.

(c) Transport and packing charges and shipping instructions.

(d) Name and address of the supplier.

(e) Date, time and place of delivery.

(f) Price, discount and terms of payment.

(g) Signature of the purchase manager.

(h) The name and address of the buyer.

6.  Making delivery at the proper time by following up the orders:

Since one of the objectives of successful purchasing is delivery of goods at right time so as to ensure
delivery when and where needed? In normal practice, the responsibility of the purchasing department is
upto the time the material is received in the stores and is approved by the inspection department.

Every purchasing department has the responsibility for follow-up of the orders it places on different
suppliers. All items do not require extensive follow-up. For some less important and low value items
follow-up would be costly and wastage of money and time only.

7.  Verification of invoices:

In normal course, it is also the responsibility of purchase department to check the invoices and
accordingly advise the accounts department for clearing the payment to the parties concerned.
Contradictory statements have been given as to who should be assigned this function.

Some are of the view that invoices should be checked by the purchase department placed by it whereas
other suggests that it should go to the accounting department. In support of this, the experts add that it is

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part of the responsibility of purchase department that orders are accurately executed and properly filled as
per terms and conditions of the contract.

If there is any error in the bills, the purchase department can get the correction done or adjustment
effected. If the invoices are checked by the stores or accounts departments, there may be some delay in
attending to the errors.

8. Inspection of incoming materials:

The purchasing department should have a close contact with inspection department. On receipt of the
materials from different suppliers, they are to be inspected as per specifications indicated in the purchase
order to verify their quality and quantity.

Uninspected materials are a burden on the economy of the organisation. If inspection is delayed, the
payments of the suppliers also are likely to be delayed, resulting in bad relations between suppliers and
purchasers.

9.  Meeting transport requirements of incoming and outgoing materials:

The purchasing officer must make goods/materials available at the right time they are required, at the
place they are needed, and at the lowest possible cost. It is a big responsibility, and even a slight error
amounts to delay in consignment required at a particular time.

In this regard, the purchase department should have a thorough knowledge of the means of transportation.
It should make a correct choice of carriers or routes because otherwise it may entail delay and additional
transportation costs.

10.  Maintaining purchasing records and files:

Purchasing involves a lot of paper work. Daily a number of letters, bills, quotations, notes, challans,
railway receipts, parcel, way bills, bills of ladings, goods received notes, lorry receipt, goods receipt
(transport delivery notes), inspection notes have to be dealt with. It involves a lot of clerical work.

This department has to refer to previous correspondence on purchase orders, notes, catalogues, blue
prints, price lists etc. very frequently which makes it imperative to maintain records in appropriate
manner. These records are essential for making the day to day purchase.

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11.  Reporting to top management:
It is also an important function of the purchasing department to prepare weekly, monthly, quarterly, bi-
annually and yearly reports regarding expenditures of this department and send the same to top
management along with details of purchases made and suggestions or improvements, if any.

12. Developing coordination among departments:

A purchasing department has to fulfill the needs of other departments in the organisation. It is the
function of purchasing department to work in close coordination and cooperation with other departments
of the company.

To a considerable extent, the attitude and reactions of other departments towards purchasing department
extends to these other departments. Mutual trust and cooperation is essential between the purchasing

department and other departments to secure high degree of efficiency .

13. Creating goodwill of the organisation in the eyes of the suppliers:

Good vendor relationship has to be maintained and developed to reflect enterprise’s image and goodwill.
Maintaining such relations requires mutual trust and confidence which grows out of dealings between the
two parties over a period of time. Worth of a purchasing department can be measured by the amount of
goodwill it has with its vendors.

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 3.3 QUALITY CONTROL DEPARTMENT

ACTIVITIES

Incoming materials-inspection of castings, forging, raw materials, hardware, bars etc.

Quality Assurance and Inspection of components and sub-assemblies supplied by approved vendors.
Line inspection of components, subassemblies manufactured on the shop floor.
Final Inspection and Performance Test.

INSPECTION OF PACKING AND DESPATCH.

Tools and instruments calibration and maintenance of test standards. Maintaining test records and
inspection results. The Production Department is totally responsible to achieve the required standards in
quality of finished goods. For this purpose, the Quality Assurance Department interacts and assess the
fine people. The Quality Assurance Department has full powers to ensure that requisite step of quality are
maintained.

INSPECTION OF IN-COMING MATERIALS

All raw materials and sub assembles viz. castings, forging, bars, plates and hardware etc. are procured as
per approved technical specification or specified relevant standards.

Only materials as per Technical Specifications approved by Quality Assurance Department are accepted
and stroed in raw materials stores.

For the in coming materials the inward in-charge records the data in the in-word register. The Quality
Assurance Department is informed through in-slip and the incoming material is stored in the receiving
inspection area, untill clearance by Quality Assurance Department.

100% inspection or alternatively as per sampling plan laid down in ISO 2500 (Part I) is carried out in
accordance with the Quality Assurance Plan for each product.

The Quality Assurance Department arranges to send the test bars and other materials to a reputed
chemical and physical laboratory for chemical composition test. Material Test Certificates on various part
Body, Bonnet, Ball & Components materials are obtained in advance with the Quality Assurance Plan.

The parts, component sub-assemblies found to be OK are tagged with OK sticker and signature of Quality
Assurance Engineer. The rejected parts and materials are market with REJECTED tags and returned to
the supplier subcontractor.Quality Assurance Engineer verifies the size, pressure rating, material code,
manufacturers emblem, arrow mark for flow direction, heat number etc. on the casting before acceptance.

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The accepted castings of Body & Bonnet are hard punched with the serial number and marked with green
paint.

The accepted materials are stored in the proper racks / bins as per identification mark. The materials are
issued against a material requisition slip for each specific requirement.

All materials are issued along with a Job Card for manufacturing. Job card shall contain all the operations
and methods in a sequence. Only approved and dimensionally accepted materials are taken up for further
manufacturing process.

IN- PROCESS INSPECTION

The Quality Assurance Engineer carries out inspection and testing at the stages defined in the Quality
Assurance Plan for the product. He fills the parts inspection report at stages defined in the Quality
Assurance Plan. He shall also indicate the status (OK/REJECT) on the parts by means of a stickers which
shall be recorded in the In-process Inspection Register. Product assembly shall be made in accordance
with manufacturing plan / drawing. Quality Assurance Department shall carry out the Hydro Static
Pressure Test for Body Bonnet before assembly. Assembly drawing of product, parts specification list and
materials requisition slip shall be sent to assembly shop for final assembly of the valves.

FINAL INSPECTION

The Quality Assurance Engineer Carries out the final inspection and tests on the products as per the
Quality Assurance Plan for the valves. He shall fill-up the Final Inspection Report. The final inspection
“OK” tag shall be signed by the Quality Assurance Engineer for the accepted valves. The final inspection
report shall be authorised by Quality Assurance Head.For rejected valves the Quality Assurance Engineer
shall mark the product with “REJECT” tag and shall fill-up the Final Inspection Report.The Quality
Assurance Head releases the valves for packing only after the stages specified in the Quality Assurance
Plan have been completed satisfactorily and all the inspection and test reports are available and authorised
by him.

CONTROL OF MEASURING, INSPECTION TOOLS AND TEST EQUIPMENTS

The Quality Assurance Head shall prepare a master list of instruments and gauges along with calibration
frequency.
The equipment shall be calibrated at the defined frequency by on external agency. The calibration shall be
traceable to a standard. After calibration, the calibration history card of the instruments or gauges shall
updated by the Quality Assurance Head.

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The inspection, measuring and test equipments shall be provided with indicator. This indicator shall be a
tag or sticker as appropriate. These tags/ stickers shall identify the equipment and shall indicate the
calibration status. When the equipment is found out of calibration, the Quality Assurance Head shall
assess and document the validity of providing inspection and test results in the form of a note. All the
equipment shall be handled by trained personnel to ensure accuracy and fitness for use. All measuring and
test equipment shall be kept under lock and key where practical in dust and grease-free environment.

3.4 HUMAN RESOURCE DEPARTMENT

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Human Resource

Human resource is a process in which the employee of an organization is continuously helping in the
planned manner to sharpen their capabilities that are required to perform various functions associated
with present and expected future roles and to develop their general capabilities under value to discover
and exploit their manner potential for the organization development process. Human resource
management deals with the planning, organizing, directing, controlling of the procurement, development,
compensation, integration and maintenance of the people for the purpose of contributing the organization.
At the level of organization individual and society goals of human resource managers are involved in the
resource management to contribute towards the accomplishment of goals of the enterprise.

Human Resource Function

1. Analyzing the role.

2. Marketing the role and person.
3. Developing the role of the person.
4. Developing self-renewing capability.

The Head of the Human Resource Department is Mr.. Kalyanasundaram

Objectives

1. To assess new human resource trends for the improvement of the organization.
2. To study about the employees feel about management.
3. To learn about the employees relationship with their peers.
4. To prepare personnel at all levels to sharpen their knowledge, skill, attitude, abilities, to accept
greater tasks for strengthening the origin.
5. To analyze the overall performance of the employees.
6. To find out the employee motivational factor.
7. To encourage employees to participate in decision making.

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To analyze the overall human resource performance of the company. Human resource
activities can be classified as’

1. Recruiting.
2. Training.
3. Compensation.
4. Organizational development.

Mr. Kalyanasundaram is working as Human Resource Manager in VELAN VALVES Ltd for 5 year’s
and in present. He has good knowledge about allocating the manpower requirements in different
departments. He is one of the main key for the company to run their process without any shortage of
manpower. In this company among 600 employees are working indifferent departments.

Selection Process

The required manpower is been gathered from various departments. Then according to the information
given they scrutinize and make allocation of manpower according to the field of requirement. They select
through the advertisement, their own employees, campus recruitment, and private company consultancies

Training

The company is providing different kind of training program to all technical and non-technical
employees. It provides various training like demonstration, literature, slide show, etc., to all the persons in
the organization. It is for all performing and self-developing inoccupation for future career development.

Compensation

Based on the performance of the employees in the company, the concern provides compensation with the
benefits and services. Salary, allowances, bonus, incentive, PF, etc., are generally comprised as executive
remuneration. They scrutinize the manual records for allocation of compensation.

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Employee welfare

VELAN provides the following welfares to the employees

1. Canteen -50% subsidy

2. Med claim– group insurance 50 by 50
3. First aid – free of cost
4. Welfare fund – provided for the employee at low interest rate
5. Trust– educational institution med claims facilities

Ratio of payment

1. The salary and wages ratios are as follows for the employee
2. Basic pay –12%
3. Employee state insurance– (Gross) 1.75% for the employer
4. Provident fund– 12%
5. Employee sate insurance – 45%

Welfare a amenities

The loan for medical purpose is been given immediately and for all purpose. Time gap between loans
should be a minimum of 1 year. For the educational purpose the company is providing their employee’s
children by rewarding to all standard of best outstanding students. The welfare amenities provided by
VELAN are as follows

Uniform

Shoes

Noise control measure

Lighting

Exhaust fans

 Rest room

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 3.5 ACCOUNTS DEPARTMENT

 Accounting Services

Headed by senior Chartered Accountants with 9 years of experience in Accounting &

Bookkeeping, our team of bookkeepers and accountants offer remote accounting services to
clients globally. Our team of accountants are well versed with multiple versions of popular
accounting platforms like QuickBooks, Xero, Peachtree, MYOB, Sage etc.

Our remote team is flexible enough to maintain your existing system setup, accounting styles
and preferences to make the outsourcing seamlessly integrated with your system. Established
processes and good communication methodology would surprise you as if we were present next
door. Our methodical approach for posting accounts ensures that you get the quality you can
depend upon. Our virtual accountants quickly adapt to your way of working and would feel as
if we were part of your staff working just for you.

Accounting Service Offerings

We prepare reports that enable the business owner to better analyze their revenue and expenses.
Some of our accounting services include:

 Income Statement (Profit & Loss)

 Cash Flow Statement
 Financial Analysis (Ratio Analysis, P/V Ratio, NPV)
 Inventory Accounting

 Balance Sheet Reporting

 Trial Balance
 Monthly/Quarterly Year End Review
 Fixed Assets Process Reports

Our flexible pricing model allows you to hire our services when there is a need and absolutely
no overheads associated with employing our virtual service.

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 3.6 SALES DEPARTMENT

The sales department should ask its salesmen to report and comment by a potential customer about the
firm’s product or the products of its competitors. It should also study the research and product
development work that the competitor may be carrying on in order to forecast as to how these will affect
future sales.

 It increases sales by way of increasing demand.

(ii) Helps salesmen by preparing ground for them.

(iii) Creates good-will by telling customers about the quality and service.

(iv) Lower costs can be achieved by way of increasing the turnover due to advertising

 Better quality is available to the customer.

(iii) Because of the direct contact between manufacturer and the customer, middlemen cannot charge
more profit.

 Lowering Selling Costs:

Its main advantage is to lower the cost per contact e.g. one newspaper advertisement places the product
before the eyes of many more prospective buyers that the equivalent expenditure on salesmen. Thus
efforts for retail sales are reduced, which reduces per unit expenditure on sales.

Industry is rapidly adopting the principle that service is an essential part of the sales itself. Manufacturers
often find it essential to see that their products are properly installed. This is not only a service to the
customers but also a protection against complaints and general dissatisfaction of the customers.

The manufacturers, therefore, maintain a staff of skilled engineers and mechanics, who carry out tests at
the customer works, give technical help and advice and see that everything is functioning properly.

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 Warehouse:
These are the go-downs, for storing finished products after they are packed in a systematic manner. These
are built in such a way that materials can be kept in them for a period till they are sold. For easy
transportation, these are generally situated near the factory main gate.

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 4.0 SWOT ANALYSIS

 S-Strength of the company

 W-weakness of the company

 O-opportunities of the company

 T-threats of the company

STRENGTH:

 More worker benefit.

 Valves are checked properly before delivering.

 Strong, transparent and informed leadership.

 Competent, committed and hardworking staff.

 Experienced management and skilled staff.

WEAKNESS:

 No new employees.

 Poor marketing strategy.

 Low product awareness.

 Insufficient resources to advertise a product.

OPPORTUNITIES:

 Grants loan to senior staff.

 Worker gets minimum amount as loan.

 Size of market.

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THREATS:.

 Machinery are all out dated.

 Price wars with competitors.

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 CHAPTER-5
CONCLUSION

The internship training not only helped me learn about my subject but also about the
basic quality required for an individual to work in an company.
The one month internship training taught me how to be punctual and how to be punctual
and how to submit the work within the given time period . It also taught me about the
work culture and how to handle the various situation in an office . This not only helps
the students to know the know the work but it also helps people to accept the work
given by their respective heads. The internship training was a new experience given by
the college to aspire knowledge from different people in a different atmosphere. It also
gave me an opportunity to interact with experienced staff in the staff in the
organisation and gain knowledge from them. It helps to know how to go about the work
in a company.

On the whole this internship training was a meaningful experience, wherein we tend to
know the real working and operations to be performed by the company to increase its
profit and sustain in the market.

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