ORGANIZATION STUDY IN K.P.N TEXTILES LIMITED, TIRUCHENGODE.

INTERNSHIP TRAINING REPORT

Submitted by

S.SABARINATHAN Register No: 098001114044

In partial fulfillment for the award of the degree Of

MASTER OF BUSINESS ADMINISTRATION IN DEPARTMENT OF MANAGAMENT STUDIES

MAHARAJA PRITHVI ENGINEERING COLLEGE

AVINASHI - 641 654

AUGUST- 2010

BONAFIDE CERTIFICATE MAHARAJA PRITHVI ENGINEERING COLLEGE AVINASHI 641654

DEPARTMENT OF MANAGEMENT STUDIES
INTERNSHIP TRAINING REPORT

AUGUST 2010

This is to certify that the Internship training report entitled

ORGANIZATION STUDY K.P.N TEXTILES PRIVATE LIMITED,TIRUCHENGODE

Is the bonafide record of Internship training report work done by

S.SABARINATHAN Register No: 098001114044 Of MBA during the year 2009 2011

_______________
Project Guide

________________
Head of the Department

Submitted for the Internship training report viva-voce examination held on_______

_______________ _
Internal Examiner

________________
External Examiner

DECLARATION

I hereby declare that the project work entitled A STUDY ON THE PERFORMANCE OF VARIOUS DEPARTMENTS IN KPN TEXTILES PRIVATE LIMITED originally carried out by me under the guidance and supervision of Mr. S. MURALIDHAR, M.B.A., Department of Management Studies, Maharaja Prithvi Engineering College, Avinashi, in partial fulfillment of the requirement for the award of the degree of Master of Business Administration.

Place: Date:

Signature of candidate [SABARINATHAN.S]

I certify that the declaration made above by the candidate is true.

Signature of the Guide, [MURALIDHAR.S]

ACKNOWLEDGEMENT

I extend my deep sense of gratitude and sincere thanks to our chairman Thiru. K.PARAMASIVAM, B.SC., and Correspondent Thiru. P. SATHYAMOORTHY, B.E., MBA, MS., of Maharaja Prithvi Engineering College Avinashi for giving me an opportunity to be a student of reputed institutions. I express sincere respected and gratitude to our principal Dr. A. S. RAMKUMAR M.E, PhD, MIE. For this valuable support in carrying out my project work. I wish to express my sincere thanks to Mrs. G. MALATHI, M.B.A., M.Phil. Head of the department for her support in my project and guidance for doing the project work. I extend my profound gratitude to my faculty guide Mr. S. MURALIDHAR, M.B.A.,, For his valuable guidance of encouragement for the successful completion of this project. I would like to express my deep sense of gratitude to Mr. JAYACHANDRAN, General Manager of the firm for allowing me to do the study. I also express my gratitude to all faculty members, my friends and my parents who have helped me to carry out this work, last but not least I thank the almighty god for the blessing showered on me during this period.

CONTENTS
CHAPTER NO TITLE ABSTRACT INTRODUCTION 1.1 About the Study PAGE NO I

1 2 5

1.2 Industry profile 1.3 Company profile MAIN THEME OF THE PROJECT 2.1 Objectives of the study

37 38 39 41

2.2 Scope of the study 2.3 Research Methodology 2.4 Analysis and Interpretation SUGGESTIONS AND CONCLUSION

3.1Suggestions 3.2 Conclusion BIBLIOGRAPHY

46 47

ABSTRACT
The study was conducted to understand the structure, function & process of various departments & their interdependence. During the course of study I was able to successfully interact with the employees of the organization. They were happy to give me all possible informations. They also took me to the worksite where I got the 1st hand information about the organizational processes and its functions.

The methodology consists of data collection through unstructured interview and observation. The data collected from different sources are classified, analyzed and interpreted based on which an organizational structure, its functions and various departments are identified. The various departmental functions are clearly identified and their processes and activities carried out are recorded. An in-depth analysis is made as to understand the departmental process based on which a process chart is prepared. The analysis further formed the basis for identifying the departmental interdependence. The study further revealed some of the challenges faced by the departments. The study helped us to obtain an exact picture of K.P.N TEXTILES LIMITED based on which a SWOT analysis is done.

Finally, with the help of latest statistics available from the organization, the present trend & current scenario of K.P.N TEXTILES LIMITED, TIRUCHENGODE is clearly revealed.

INTRODUCTION
Job satisfaction describes how content an individual is with his or her job. It is a relatively recent term since in previous centuries the jobs available to a particular person were often predetermined by the occupation of that persons parent. There are a variety of factors that can influence a persons level of job satisfaction. Some of these factors include the level of pay and benefits, the perceived fairness the promotion system within a company, the quality of the working conditions, leadership and social relationships, the job itself(the variety of tasks involved, the interest and challenge the job generates, and the clarity of the job description/requirements). The happier people are within their job, the more satisfied they are said to be. Job satisfaction if not the same as motivation, although it is clearly linked. Job design aims to enhance job satisfaction and performance methods include job rotation, job enlargement style and culture, employee involvement, empowerment and autonomous workgroups. Job satisfaction is a very important attribute which is frequently measured by organizations. The most common way of measurement is the use of rating scales where employees report their reactions to their jobs. Questions relate to relate of pay, work responsibilities, variety of tasks, promotional opportunities the work itself and co-workers. Some questions are of yes or no while others ask to rate satisfaction on 5 scales starting from Highly Satisfied to Highly Dissatisfied.

INDUSTRY PROFILE:
The textile industry in India is one of the best in the world. An extremely well organized sector, garment manufactures, exporters, suppliers, stockiest and wholesalers are the gateway to an extremely enterprising clothing and apparel industry in India. There ear numerous garments exporters, garments manufactures, readymade garments exporters, garments manufactures, readymade garments exporters etc, both in the small scale as well as large scale.

Garments Industry in India:

Indian readymade garments and textiles are extremely popular the world over. In fact, exports of readymade garments registered a 6.4% increase in dollar terms and an 11.6% increase in rupees terms during the period April-December 1999-2000, deposit a sluggish growth in income both at home and abroad. Indian garment export growth during AprilJune 1998 for woolen readymade garments was a phenomenal 150% for readymade garments made of silk it was 58%, and for other readymade garments it was 39%, in dollar terms. The garments industry in India is vital to the economy of the country. It contributes to over 6 percent of the gross domestic product of India and earns 18 percent of the total foreign exchange earnings of the country. The industry covers a wide range of activities. These include the production of natural raw materials such as, Cotton Jute Silk and wool Synthetic filament Spun yarn

The industry covers a wide range of activities. These include the production of natural raw materials such as cotton, jute, silk and wool, as well as synthetic filament and spun yarn. In addition an extensive range of finished products are made. The Indian textile industry accounts for about 23% of the worlds spindle capacity, making it the highest loom capacity including hand looms with a 61% share. India accounts for about 12% of the worlds production of textile fibers and yarns. This includes jute, of which it is the largest producer. The country is the second largest producer of silk and cellulose fiber and yarn, ad the fifth largest producer of synthetic fiber and yarn. The textile industry in India (including the garment industry in India (including the garment industry) is vital to the economy of the country. It contributes to over 6 percent of the gross domestic product of India and earns 18 percent of the total foreign exchange earnings of the country. The textile industry consists of three distinct sectors, viz, spinning, weaving and processing. The industry is the largest employer next only to agriculture which is the mainstay of the economy. Over 50 per cent of the employees are women who help to sustain the family income. The garment industry alone employs four million workers and helps to support labour working in ancillary manufacturing buttons, zippers, sewing thread, embriudert thread, metal studs, polybags, cartons, cardboard sheets, etc. While the spinning sector is very well-organized producing yarn as coarse as 6s to as superfine as 160s, both in singles and multiples, the weaving sector, especially the power loom sector has considerable leeway to make good with up gradation in technology. Even as of today, the power loom sector is keenly interested in setting up automatic airjet/water-jet looms which are of vintage variety with a balance life-span of 10 to 15 year. On the other hand, the organized mill sector is keen to keep in touch with the latest technology. It is currently passing through a phase of rehabilitation partly from its own resources and partly with the help of finances made available by government and through public investment. The processing sector is the weakest link in the chain of the textile industry. This sector too has an organized as well as unorganized sector. While the unorganized sector

concentrates only on certain processes, the organized sector concerns itself with the processing of fabric from the grey stage up to its finished state. It may be noted that this organized sector is independent of the sector installed by the organized mill industry. This sector concerns itself only with processing of fabric.The garment industry produces over 100 varieties of garments for different end uses. Additionally, a section of the industry concentrates on manufacture of ethnic garments, or what are traditionally called India Items.

COMPANY PROFILE
The K.P.N Textile Ltd year of established in 2008 in the location of Veppadai(via) padaiveedu S(p.o),Thiruchengodu-

Nathamedu,Amman koil bus stop, 637303,Namakkal(dt),Tamilnadu.

Managing director:
The firm is established by K.P.Nachemuthu, The firm is a successful one, The nine directors participate in overall control of the firm activities, Finance banking activities and labour welfare. The overall activities are controlled by managing director, office manager and chief executive.

Profile:
It is emerged in 2008 with nine partners

Location:
Nathamedu Amman koil bus stop, Veppadai(via) padaiveedu S(p.o) Thiruchengodu-637303. Namakkal(dt), Tamilnadu.

Managing director:
Mr.k.p.Nachimuthu

Directors:
Mr.Nadesan Mr.Balu Mr.Subramani Mrs.Aruna Mr.Palanisamy Mr.Ravi Mr.Moorthi Mrs.Jothi

General manager :
Mr.Jayachandran

Employees :
More than 200 employees are working in shift basis

Raw material:
Fibre

Natural

Artificial

Natural fibre like cotton Artificial fibre like polyster

RAW MATERIAL VISCOSE

Organization structure:

Managing director

Directors

General manager

Department manager

supervisors employers

There are four departments in this company Production department Finance department Human resource department Marketing department

PRODUCTION DEPARTMENT
Production may be defined as the creation of goods and services to satisfy human wants and needs. The production department is sub divided into five departments Which a as follow Spinning department blow room, caring and spinning Weaving preparatory department winding, warping and sizing Processing department bleaching, printing and dyeing Weaving department loom shed Warehouse department examining, packing and balling

Definition:
According to prof.corl hayel, production is the process of transforming raw materials into finished products for sale.

MACHINE CAPACITY:
The machines can produce more than 50,000 of yarn per day. According to a single machineries capacity it can able to produce 10 to 12 thousands of yarn per day .

PRODUCTION LAYOUT:
In this production layout there are different steps that are followed they are : Cleaning Making the viscose as thick layer And making as a thick line And from that reducing the unwanted thing and the yarn is rolled in a cone. There are eight type of process in the production department they are as follows

PROCESS 1:
In this production the first stage of the production is buying of the raw material. The raw material is the fibre they are of two types they are Natural Artificial Natural fibre like cotton etc Artificial fibre like polyster,viscose etc In this company they are using viscose as their raw material The raw material is a package is a bundle of consists of 250 kg per bundle

PROCESS 2:
The next stage is the blending is done in this blowroom process In this process the package is taken and raw material taken to the blending in the blowroom

PROCESS 3:
Carding is the 3rd process In this carding process the short fibre is

removed from the fibre in simple word it is said to be as the dust is removed from material that is given

PROCESS4: DRAW FRAME:

In this there are two types of function they are

BREAKER

FINISHER

PROCESS5:
In this process the parallization of the fibre is that is to the get fibre for the next process The parallization is nothing but the making of the fibre to a long parallel line which is used in the next process.

PROCESS6: SIMPLEX:
In this process the fibre that is the viscose is made as a thick layer that is made the next process easier and make the product better quality.

PROCESS7: SPINNING:
In this process yarn is produced in this there are several variety of yarn that is .

PROCESS8: CONE WINDING:

In this process the fault is removed from the yarn that is produced.

PROCESS9: PACKAGE:
This is the last process that is to be taken the goods for the export after the goods

FINANCE DEPARMENT
Function and Responsibilities of the Department Financial Planning Fund Receiving. Making Capital Expenses Decision. Managing Cash. Managing Credit Activities. Making investment Decision. Tax Management. Making Financial Decision. Financial Analysis. Preparation of Semi Annual and Annual Financial Statement. Dealing with Financial A/C Activities. Dealing with Banks. Dealing with Purchase of Miscellaneous Items. Recording of Cash Transaction. Recording of Local and Export Sales. Record of Suppliers A/C. Preparation of Record for Auditing Purpose. Maintain Goods of A/C edit Purchase of Miscellaneous Items

ACCOUNTING SYSTEM
There is a centralized computer system in the MTM. All the accounting is done in the head office of different units. This process starts from the preparation of vouchers. These vouchers are:

Cash Vouchers
The cashier prepares cash vouchers which payment or receipt of cash is involved.

Bank Vouchers
At the time of issuing cheques these vouchers are prepared and after the payment bank A/C is credited and part is Dr. the cheque is signed by the chief

accountant, finance controller and the director.

Sales Vouchers
At the time of export and local sale these voucher are prepared.

Bought Day Vouchers

These are prepared at the time of purchasing of goods.

Journal Vouchers
These vouchers served daily for transferring account in which payments are not involved. After every transaction voucher is prepared and then send to the chief accountant with all supporting material and chief accountant checks these vouchers and send to the auditors for the internal auditing purpose and after this send to the director. If director has any inquiry then he can ask the relevant person. Then the recording of those transactions are made in the appropriate books of accounts. These books are: Cash Book Day Book Bank Book Bought Day Book Sale Day Book

Cash Book
Cash payment receipt vouchers are entered in this book on daily basis. Cash closing balance is calculated daily and checked by auditors.

Bank Book
This book is maintained to control all the bank accounts of the company. This book has different columns at the end of the month the total of these is posted in main ledger and the reconciliation is also made with the bank statement at the end of the month.

Day Book
Journal vouchers are entered on the daily basis in this book and the auditors check the entries of postings. At the end of the month these are posted in the General ledger control account.

Sales Day Book

This book is maintained for the sale bills and the posting is made to the customer ledger. This is posted to main ledger for control at the end of the month.

Ledgers
After recording the information in these books of accounts then it is posted to appropriate ledger accounts. The recording and the posting checked by the auditors. Then trial balances are prepared and if these trial balances are tallied then the income statement/profit and Loss Accounts and Balance Sheets are prepared.

Main Ledger or Control Ledger

From the main ledger/control ledger Balance Sheet is prepared. All the assets,

liabilities, customers and suppliers record is maintained in this ledger. At the end of the

month trial balance is prepared to check the accuracy of the account by seeing the Dr. & Cr. Balance of the Trial Balance.

Profit & Loss Ledger

For each unit separate Profit & Loss ledger is prepared to check the profitability of each production unit. In this ledger all account regarding the income and expenses are recorded. These are: Sales account. Local & Export Sales. Commission of Sales. Excise Duty on Yarn. Export Development Surcharge.

Expenses
Administration Expenses. Manufacturing Expenses. Selling Expenses.

Charges
Maintenance Charges. Misc. Charges.

Customers Ledger
Posting in customer ledger is made from cashbook, daybook, and bank book and sales book to maintain the customers record. Customers balances are worked out, prepare receivable and submitted to the directors.

Suppliers Ledger
There are two types of supplier ledgers: This ledger is mean only for the purchasing of goods and the entries in this ledger is made from cashbook, daybook, bankbook and bought book day book. Goods received are credited in account of suppliers and payment made is debited in account of supplies. If supplies are more than 25,0000 than 3.5% income tax is deducted at the time of payment. Second type of ledger is maintained for which the company hires the services. Company deducts income tax form the professionals, contractors & commission agents at the following rates: Professional/Service renders Contractors Commission Agents 5.5% 3.5% 12%

Personal Ledger
This ledger is prepared to record all the data relating to the personal account of the companys employees. At the end of each month trial balances are prepared & see the employee personal data regarding the leaves, loans & advances etc.

WAGES AND PAYROLL SECTION

Payroll system deals with the expenses of the employee on work in an organization. Preparing a payroll requires collecting employee work hours, converting hours to gross earnings & computing allowances & deductions & then net pay. In addition to

accounting activities a payroll system commonly performs activities that might be viewed as personal operations such as sick leaves & vacations etc.

In MTM system is computerized a payroll management system. So all the data about the employees & their payrolls is recorded in the computer.

Preparation of Salary Sheet

In MTM Muzaffar Garh workers perform their duties in three shifts which are called shift A, B, & C. Period of each shift is of eight hours. As there are three shifts so three salary sheets one for each shift are prepared. Salary sheets that are prepared in the head office are of the following types:

Shift salary sheet.

Officer staff salary sheet. Office staff salary sheet AndGeneral shift salary sheet. Timekeeper is responsible for the record of attendance & leave of all the workers. Time officer sent the Haazri register /attendance sheet with related information to the head office. From the first date to 10th date of the Month Salary sheets are prepared. Wages are calculated according to the category of worker & decided rates. In the wages sheet serial no., workman no., social security no., weekly rest, name of the worker, father name, date of first appointment, nature of work, rate of pay, monthly record of the daily attendance of each worker, sex, age no. Days the worker attended, allowances, gross wage payable, deduction & actual wage paid are mentioned.

Allowances
In MTM allowances are paid to worker for their contribution towards the organizations objectives. Following are the types of allowances that are given to the workers.

Cost of Living Allowance (C.L.A)

Cost of living allowance is given to the workers according to the rules & regulations of the Govt. whenever Govt. increases the cost of living allowance this additional C.L.A. is also given to the workers. Cost of living allowance is provided according to the basic salary of the worker.

Attendance Allowance
Attendance allowance is also given to the worker for their contribution to organization objective. Attendance allowance is given to the worker if he has worked full days of the month. If the worker does not work full days of the month then this allowance is not provided to the worker by the organization.

Conveyance & Medical Allowance.

iven to workers of this organization. 10% of the basic pay is given as a house rent to the employees of the organization.

One Time Allowance

If an employee achieve production targets or show good efficiency he will be rewarded by one time allowance. This allowance is also given according to the basic pay. Indexation 18% of basic pays C.O.L.A.

Fine
When worker misconduct during his jobs the labour officer or the assistant labour officer may fine him. Similarly when guilt is proved against the worker he may be fined.

There is no limit of fine but it is according tot he nature of the guilt & the capacity of the worker. Then this fine is deducted from the salary of the worker.

Advances & Loan

There is a facility of advance for the worker of MTM. Due to an emergency or any other reason when an employee apply for the advance, then this advance is issued by the labour officer & it is deducted from the salary of the worker. Advance is given against the salary of the worker while, loan is given on the discretion of the management & return of the loan is made on monthly installment basis.

Income Tax
Income tax is deducted from the salary of the officer staff. Income tax is deducted according to the rule from those employees whose annual income is Rs.50, 000 or above, firstly it was Rs.40, 000

Fair Price Shop

There is a facility for the worker to buy the things on credit from the fair price shop. At the end of the month all these bills are deducted from the salary of the worker.

Rent
A cot is provided to the workers of MTM for the purpose of rest & sleeping. There is a facility to pay the cost of the cot in four installments on monthly basis or a worker may pay the whole amount at once.

One Time Deduction

Its opposite of the badli allowance. If person is temporarily demoted then the

difference of salary between the past & present job over the no. Of days worked is deducted.

Stores
Mill has a policy to overhaul all the machinery of each department in a chain process so that no interruption in production work should occurs. For this purpose spinning units have two store rooms. One main store room is working in the Moza Sunaki Multan road Muzafar Garh spinning mills & second store room is working in 4th spinning unit situated at D.G.Khan Road Muzaffar Garh, while weaving unit has it own separate store.

Commercial Department
The G.M. of commercial department is responsible for making all sorts of purchases. This department deals with two sections. Purchases Stores

Purchases are of two Kinds

Raw Material Store Purchases The responsibility of getting main raw material (cotton) is with the director of the company. As the company has its own ginning factories therefore, most of its fulfilled through these factories, while the remaining raw material is purchased from outside. Two methods are used for the purchase of items routine purchases & emergency purchases. If the item is not new & the department is agree with the price & quality of the item then the department sent order the current supplier for the purchase of that item. In the case if the department is not with the agreement of the quality & price of the item then department call quotations from suppliers. From these price of the item then department call quotations from suppliers. From these quotations a comparative

statement is prepared by the purchase incharge & G.M. checks these comparative statements & takes a decision about cash or credit purchases. These credit purchases are

normally for the bulk quantities. The lowest price offered by the supplier is selected & approved by the director. In this way an item is purchased.

Emergency Process
If some item is short in store & some emergency need of that item arises then instead of routine process emergency process is adopted which is as under.Purchase demand for the emergency required item is prepared & is send to commercial department at head office where purchase indent of that item is generated. Then on this purchase order

purchase officer gave order to the party which last time supplies that item. This is normally done through the telephone. The said party supplies the item as early as possible & all the office work is done later same as in routine supplies.

Duties or Function Performed by this Department are as under

Checking the quotations taken from suppliers. Collection of the bill. Maintenance of purchase demand register. Sends inquiries outstations & get quotations. Making of purchase orders. After the purchase of the item it is sent to the factory & an inward Gate pass is prepared.

Inward Gate Pass

When items supplied by a party are received on gate then these items are checked according to the bills attached with supply & a documented is created manually called IGP at gate.

Daily Receipt Register Entry

After IGP an entry is made in the daily receipt register of the items or the record purposes.

Goods Receipt Note (GRN)

After this a GRN is prepared by the store incharge & it is also included inspection report. This GRN, IGP & sample of the item is sent to the concerned department for which purchase is being made for the approval or rejection of the quality of the particular item. The concerned person checks the quality of the item if it is up to the standard then the concerned person approve that item, sample is kept in the department & IGP & GRN are send back to the store with store issue requisition. On the store issue requisition required quantity of the items are issued to the department. Then store incharge send GRN & SIR to the head office before this G.M . Mill verified this GRN. GRN includes item receipts & their price. After proper costing supplier ledger is updated & the head office makes the payment to the supplier. If the supplier payment exceeds from 25000 then according to the Govt. rules & regulations 3.5% income tax is deducted from their payment & this goes in the Govt. Revenue. After this it is send for the entry in the computer to update the record of the particular item. SIR is also entered in the computer to update the record of the consumption of the item.

Outward Gate pass

If the item is rejected by the concerned department then the outward gate pass of that item is prepared & it is send back to the supplier.

Purchase Journal
After the approval of the item from the concerned department & payment of that item from the head office entry of that is made in the purchase journal by the store incharge.

Consumption Register
When certain items are issued to the different departments then entry of that item is made in the consumption register.

Reports
Store & spare system at MTM prepare several types of reports that fulfill different system needs. List of these reports with their features is as under:

Party Ledger
This report list the party codes with their description. This report is printed when some new party is added or a party is canceled.

Monthly Consumption Report

This report is generated monthly to see the department item-wise consumption of the ending month. This report contains the department name, report for the month, S.No. Item code, description & quantity of the item issued during the month.

Outstanding Purchase Indents

This report is prepared for the purchase indents that are outstanding. This report helps management to make decision for item quantity in new purchase indents. It also notifies the incomplete indents. It contains main, sub, item code, item description, purchase indent no., quantity in purchase indent, required by, outstanding quantity & total outstanding quantity for more than one purchase indent outstanding.

Export Documentation
There are a host of problems, which an exporter or an importer has to face in the overseas trade. Unless the overseas trade is properly documented. The exporter cant receive payment & the importer cant make it.

The main documents used in exports are: Letter of Credit. Commercial Invoice. Certificate of Origin. Packing List. A Bill of Lading. A Bill of Exchange. Certificate of Inspection. Form E . R. 3 Form.

Parties to a Letter of Credit

The L/C has four parties to it, namely, The buyer is the importer or account party. The bank issuing the L/C. The paying bank on which the draft is drawn. The seller or the exporter who receive the benefit of the credit.

Types of Letter of Credit

There are various classes of credit, the important of them are: Irrevocable or revocable. Confirmed or unconfirmed. Documentary or clean. Fixed or revolving.

Commercial Invoice
Commercial invoice is a business document, which is prepared by the seller of the goods & is handed over to the customer & the full information about:

Description of goods.
Price per unit at a (Seller Country) particular location. Total value of goods. Packing Specifications. Invoice no. & Invoice of. Terms of sale. Letter of credit no. Identification marks of the packages. Bill of lading no. Shipped from/to. There is no standard form for a commercial invoice. But the contents must comply with the regulation of importing country. The main purpose of the commercial invoice is to check whether the appropriate goods have been shipped & that there unit price; total price marking on the packet is consistent with those mentioned in other documents. Commercial invoice issued in sets of five or six & is printed on papers of different colors.

Packing List
This list is required to supplement the commercial invoice when numerous units of the same product are being shipped. It is also needed when the quantites, weight or contents of the individual units in a shipment vary. This list enable the receiver of the shipment of check the shipment & the exporter evolve his own packing list. It also helps the custom offices to inspect the goods. There is no specific form prescribed for the packing list, but it normally contains:

Description of goods. Packing specification. Vessel name & port of shipment Form/To. Letter of credit no. Identification marks of packages. Bill of lading No. Form E No. Buyers name & country. Gross & net weight of package.

Export Procedure
MTM is exporting yarn since the establishment of first spinning unit by MTM is in the business of grey cloth export since 1991-92 with the establishment of a weaving unit. About 80 to 85% of the total production they are exporting to the Japan, China, USA etc. and the remaining 15 to 20% the sell in the local market. Before export sale the export department obtained report about the products available for the export from the production department. After assessing the cost of goods, they set the export price by taking notice of demand and competition of the market. The use marginal exports pricing system because export pricing depends upon the demand, Competition and cost of goods. Than they contact with the persons who are interested in importing the goods through mail, agent abroad, fax telex etc. If both the parties are agreed on rates. Terms and conditions of trade then the export department prepared the contract, which in mutually signed by the buyer the seller and indentor if any. The import commission gets his commission from the buyer. Which is stipulated in the contract. The contract contains the following terms. Seller/buyer name & address. Description of the goods.

Date & place of shipment. Port of destination. Trans shipment & partial shipment allowed or not. Indentor commission rate. Value of goods & terms of sale.

They make three copies of the contract for the reference of each party. This contract has no legal value but it is moral responsibility for the both buyer & seller to fulfill all the terms & conditions mentioned in the contract during the trade. Next step is that the buyer submitted L/C application to his banks (the issuing bank). The issuing bank advises the credit to the beneficiary through its corresponding bank operating in our country. This notifying bank which accepts the draft under L/C then negotiate these documents with the export department. It is mention in the L/C its up to seller to negotiate any one of country bank, who is dealing with trade. After accepting the L/C its now the export department to fulfill all the terms & conditions of the L/C before its expired & shipped the goods before the last shipping date mention in the L/C. If any change the export department wants in the L/C, then negotiation bank has no authority to change any term & condition of the L/C. However the buyer on the request of the export department asks the issuing bank & the bank authorities may change & all changes of the discrepancies of the L/C are in the account of the seller. After accepting the L/C, the export department gives the last date of Shipment to he production department to manufacture the goods before the last date of shipment & packed & marked goods in the form mentioned in the L/C. When the production

department informs them that goods are ready for the shipment then they prepared the shipping documents & send to their shipping agent which contains. Commercial Invoice. Packing list (6 Copies) (6 Copies)

Form E along with relative certificate, full set no. APTMA EPC. L/C photo copy. Bank draft in favour of controller excise & land custom revenue. The shipping agent then arranges the container to load the goods & also arrange the vessel for the goods.Then he paid the custom duty to the excise & custom land revenue & sends all the tested copies of, Bill of lading Original RJR Commercial invoices Packing lists Form E to the seller. The export department then send the copies of the commercial invoice, bill of exchange, packing list, bill of lading, form E , L/C photo copies by electric mail or fax to the buyer, as mentioned in the L/C to send these copies in favour of the buyer after the shipment of the goods. The export department then prepared the Banking Documents & sends the following documents to negotiate bank for negotiation, Bill of exchanges Commercial invoices Packing lists Bill of lading Beneficiary faxes (2 copies). (6 copies). (3 copies). (5 copies). (one copy). (4 copies). (one copy). (2 copies). (2 copies).

Beneficiary certificates Form E Attachment to Form E Letter of credit

(one copy). (2 copies). (2 copies). Original.

The bank check the documents & sends them to the issuing bank, who proceeds the credit in favour of the seller account on the terms stipulated in L/C. The bank deducts their changes from the account of the seller. Export Sales Yarn Cloth 2008 1,369,56 3,23,800 2009 1,165,94 3,50,200

The increase in export sales of Grey cloth in 1999 is mainly due to expansion of weaving unit and the ISO 9002 Certified, from M/s System 9000 (Pvt) Ltd. Karachi. Is a foreign Company with its Head Office in U.K? The training program0me started during January 1998 and after successful completion, certificate under ISO 9002 have been awarded on 05/10/1998, separately to MTM each unit consisting of four Spinning and One Weaving unit. And the MTM management organized to produce the Quality goods. To complete the export demand, MTM increase the 5 no new Sulzer Ruti Shuttleless looms and now MTM has the 103 Sulzer Ruti Shuttless to complete the export Grey cloth demand. We hope that the export of MTM will increase more & MTM will enjoy the more profit in future. In the beginning they invested he capital is about 10 core It is invested by the shareholders of the company. Mr.M.P.Nachemuthu he is the founder of the company. The invested amount that is spend for the raw materials, land, machineries, and labour.

The maximum amount is spend for the machineries and land There is no separate department for the finance of this company they are maintaining in head office because they are having several business they are maintaining all the finance in one place

PROFIT:
The company is started in 2008 so they are having the finance information for only two years For the first year they are acquired the profit of 1.5 crore and for the second year the profit statement is not prepared There is no loss is occurred upto the current year according to the financial statement.

HUMAN RESOURCES DEPARTMENT

A human performance is the product of his/her ability and motivation, right personnel policies are important for sustaining ability and motivation in the human element. The technical functions of this department include recruitment, performance, deployment, Wage-agreements, discipline, performance appraisal, termination as well as activities.

OBJECTIVES:
The objectives of the HR manager is to motivate the employee and upgrade the skills of the employee to reduce the absence of the employee. The main work of the HR manager are as follows: Recruitment of the employees Training and development to employees Performance appraisal etc

RECRUITMENT OF THE EMPLOYEES:

In this recruitment process the employees are recruited here in this there may be of several recruitment process are being done here there are two types of recruitment takes place they are internal and external recruitment.

TRAINING AND DEVELOPMENT OF EMPLOYEES

The training and development is the effective tool for employee development. The newly appointed employees are to be trained and developing their skills in this part.

PERORMANCE APPRAISAL:
The performance appraisal is about the analyzing of the employee performance in the work process in the company..

MARKETING DEPARTMENT
The marketing departments that includes te following process in it they are Getting order Prepare to export the quantity ordered Invoice is prepared Collection of the amount Transporting the goods to the ordered place

Getting order:
Order that is get by s the company to market their product that is the sale of the product according to the order they are delivering their customers goods to their

Prepare to export the quantity ordered:

After getting the order they must start their production process to export the required quantity of product. the customers they are prepared for the marketing of the

Invoice is prepared :
The invoice is prepared for the marketing that contains the number of goods that is going to exported and the rate of the product that is going to be exported and the total price of the quantity all are mentioned here.

Collection of the amount:

Collecting of the amount is nothing but that the money that is to be collected for the exported product and it is submitted to the concern authority.

Transporting the goods to the ordered place:

The goods that is ordered to the company that is produced is to be sent for the customers The product that is delivered to the customers by using the transportation facility.

CHAPTER -2 MAIN THEME OF THE STUDY PRIMARY OBJECTIVE

To study the overall the activities of the organization

SECONDARY OBJECTIVE
To understand the difference between theoretical & practical aspects of functioning organization. To study how manufacturing process is carried by the company. To know about the functioning of the textile concern. To know about the functioning of the various departments. To study the latest technology that have been used. To make SWOT analysis in the various departments.

SCOPE OF THE STUDY

The study is being conducted for the K.P.N TEXTILES LIMITED, TIRUCHENGODE, analyzes the functioning of different departments and their inter relations. This study tells us an overall view of organization and functions carried out by different departments like production, finance personnel and marketing.

RESEARCH METHODOLOGY
Research methodology is a method that can be used to solve research problems. Research methodology provides various steps the can be adopted by the researcher are studying his research problems. Research methodology deals with the objective research study, method of defining research problem, type of hypothesis formulated, the type of data collected, the type of data collected, the method used for collecting and analysing the data.

RESEARCH
Research as a scientific and systematic search for pertinent information on a specific topic research is an art of scientific investigation. Redman and Murray define research as a systematized effort to gain new knowledge

RESEARCH DESIGN
A research is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research design adopted for the study is descriptive in nature. Descriptive research studies are those studies which are concerned with describing the characteristics of particular individual or group.

DATA COLLECTION METHODS

The study is conducted o the basis of data collected from the primary as well as secondary sources.

PRIMARY DATA COLLECTION METHOD

Primary data are those which are collected a fresh and for the first time, and thus happen to be original character. Here use Unstructured interview Observation

SECONDARY DATA COLLECTION METHODS

Secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. Here they are Company records Journals Company files Company brouchers

ANALYSIS & INTERPRETATION SWOT:

S-strength W-weakness O-opportunities T-Threats

ANALYSIS OF PRODUCTION DEPARTMENT: STRENGTH:

High technology and machinery is available Skilled employees are available The infrastructure is best for production High quality of the product is produced The workers are very effective at their work

WEAKNESS:
The weakness of the company is as follows: The electricity is highly used for the machineries The transport is the main weakness of this place where the company is situated for away from the city

OPPORTUNITIES:
The raw material cost is very less from the place where they are taking the raw There were many orders are being given according to the product quality that is produced.

THREATS:.
If the competitors introduce new technology machines then the company must also invest their machines. Shortage in raw materials will lead to production delay or reduced. Lockouts or Strike periods will affect the company.

ANALYSIS OF HR DEPARTMENT: STRENGTH:

They are selecting a skilled person for their job. They analyze about the employees and satisfying their needs They make some training program for the employee to make the work effective and better performance

WEAKNESS :
The workers who are in contract basis are uneducated

OPPURTUNITIES :
Regular gathering of staff personnel are organized to provide them platform for interacting and presenting suggestions towards Cost Improvement, which gives put into practice with successful results. Enough opportunities to participate in continuous improvement programs and exhibit the innovative and creative abilities.

THREATS:
Leakage of the company secrets to competitors. Sudden resignation of any well working employee. Well-qualified employees moving to other competitors for more earnings.

ANALYSIS OF FINANCE DEPARTMENT: STRENGTH :

There is a separate department for the finance they maintain separate book for all the company. These books are maintained in the head office their having accounts for all sister concern. They are paying the tax according to the profit that is being prepared by the finance department which gives clear financial statement.

WEAKNESS:
There are may be chance of getting wrong data that can be made entry in the book.

OPPURTUNITIES:
There are various administrators and financial managers in the concern, so that there is regular maintenance of financial position in the concern. New technological financial development softwares were used in the concern for

operation which make the concern to find an good opportunity in

external agencies

THREATS:
The concern faces few difficulties in the collection financial liabilities given to the customers for the goods, little improvement is required in the maintenance of the financial terms and policies adopted by the concern.

MARKETING DEPARTMENT STRENGTH:

Demand for the products in the market, which increase in supply. Prices are normal compared to their competitors. Having knowledgeable people interact with the customers. Hold current users by encouraging repeat purchasing.

WEAKNESS:
Delay in goods supply to the customer. Damages of goods send will create bad impression on the company. If heavy expenses are not made on marketing.

OPPURTUNITY:
Easy to forecast market risk. Storage facility can be increased. Grading will increase the material price.

THREATS:
Price fixed by private enterprises. Mixing of other low quality of product and selling.

CHAPTER -3 SUGGESTIONS
Retaining employees and reducing labour turnover is essential for a profit making organization. So, it is suggested to retain experienced employees to maintain quality and quantity of the business.

The study reveals that the remuneration offered by the company is not satisfactory. o So, adequate wage / salary may be provided to retain the quality aspects.

Modernization and computerization of the organization is recommended by the majority of the employees. And the workers are willing to adopt new changes. So, the organization may modernize and computerize their business process.

CONCLUSION
The growing demand and popularity for the product of the company over a period of time brought in greater awareness of changing perception of customer requirements of product attributes and the detailed study made, shows that workers of the concern feel that the entire welfare facility under the Factories Act is available and shows satisfaction about the implementation of the same. The company has a good liquidity and profitability position with the involvement of Information System. The company is performing better in the recent year.

It may be concluded that the study has been done successfully keeping the objective in mind.

BIBLIOGRAPHY

1. John Bank, THE ESSENCE OF TOTAL QUALITY MANAGEMENT, prentice hall, 1992, New York. 2. C.R.KOTHARI, RESEARCH METHODOLOGY, Wiley Eastern, 1991, New Delhi.