EXECUTIVE SUMMARY

Industry exposure is the most crucial part of the management studies in which a
student is able to synchronize his technical knowledge with practical knowledge gained in
any of the organization. I chose the Company pavathal spinning Pvt, Ltd titled “A Study Of
Overall Functions Of pavathal spinning Pvt, Ltd, Palani” which was great of a learning
experience. I hope that the words of company will communicate the actual of experienced
gained with subtlety and precision, which is unapproachable, by any other means.

pavathal spinning Pvt, Ltd Facility is one of the world’s manufacturing facility under
one roof. Spread across an area of more than 1013 acres, pavathal Pvt, Ltd facility employs
more than 500 people.

The study helped me understand and gain more knowledge about process carried out
in an organization. The purpose of this report is to examine the various processes under taken
at pavathal spinning Pvt, Ltd, Palani. The report includes the functions of various
departments like Production department, Human resource department, Finance department,
Marketing department, Sales department etc.

The study started with understanding of the spinning mills. Then the complete
information about the company was. The organization structure was also examined. After
gaining enough knowledge about the industry and company, the functional areas were The
day-to-day activities of each and every department were studied.

i
 CHAPTER I
INTRODUCTION

1.1 INDUSTRY PROFILE

The textile industry is the largest industry of modern India. It accounts for over 20
percent of industrial production and is closely linked with the agricultural and rural economy.
It is the single largest employer in the industrial sector employing about 38 million people.
If employment in allied sectors like ginning, agriculture, pressing, cotton trade, jute, etc. are
added then the total employment is estimated at 93 million. The net foreign exchange
earnings in this sector are one of the highest and, together with carpet and handicrafts,
account for over 37 percent of total export earnings at over US $ 10 billion. Textiles, 1 alone,
account for about 25 percent of India’s total forex earnings.

India’s textile industry since its beginning continues to be predominantly cotton based with
about 65 percent of fabric consumption in the country being accounted for by cotton. The
industry is highly localised in Ahmedabad and Bombay in the western part of the country
though other centres exist including Kanpur, Calcutta, Indore, Coimbatore, and Sholapur.

The structure of the textile industry is extremely complex with the modern, sophisticated and
highly mechanised mill sector on the one hand and the handspinning and handweaving
(handloom) sector on the other. Between the two falls the small-scale powerloom sector.
The latter two are together known as the decentralised sector. Over the years, the
government has granted a whole range of concessions to the non-mill sector as a result of
which the share of the decentralised sector has increased considerably in the total production.
Of the two sub-sectors of the decentralised sector, the powerloom sector has shown the faster
rate of growth. In the production of fabrics the decentralised sector accounts for roughly 94
percent while the mill sector has a share of only 6 percent.

Being an agro-based industry the production of raw material varies from year to year
depending on weather and rainfall conditions. Accordingly the price fluctuates too.

1
Global Scenario

The textile and clothing trade is governed by the Multi-Fibre Agreement (MFA) which came
into force on January 1, 1974 replacing short-term and long-term arrangements of the 1960’s
which protected US textile producers from booming Japanese textiles exports. Later, it was
extended to other developing countries like India, Korea, Hong Kong, etc. which had
acquired a comparative advantage in textiles. Currently, India has bilateral arrangements
under MFA with USA, Canada, Australia, countries of the European Commission, etc.
Under MFA, foreign trade is subject to relatively high tariffs and export quotas restricting
India’s penetration into these markets. India was interested in the early phasing out of these
quotas in the Uruguay Round of Negotiations but this did not happen due to the reluctance of
the developed countries like the US and EC to open up their textile markets to Third World
imports because of high labour costs. With the removal of quotas, exports of textiles have
now to cope with new challenges in the form of growing non-tariff / non-trade barriers such
as growing regionalisation of trade between blocks of nations, child labour, anti-dumping
duties, etc.

Nevertheless, it must be realised that the picture is not all rosy. It is now being admitted
universally and even officially that the year 2005 AD is likely to present more of a challenge
than opportunity. If the industry does not pay attention to the very vital needs of
modernisation, quality control, technology upgradation, etc. it is likely to be left behind.
Already, its comparative advantage of cheap labour is being nullified by the use of outmoded
machinery.

With the dismantling of the MFA, it becomes imperative for the textile industry to take on
competitors like China, Pakistan, etc., which enjoy lower labour costs. In fact the seriousness
of the situation becomes even more apparent when it is realised that the non-quota exports
have not really risen dramatically over the past few years. The continued dominance of yarn
in exports of cotton, synthetics, and blends, is another cause for worry while exports of
fabrics is not growing. The lack of value added products in textile exports do not augur well
for India in a non-MFA world.

Textile exports alone earn almost 25 percent of foreign exchange for India yet its share in
global trade is dismal, having declined from 10.9 percent in 1955 to 3.23 percent in 1996.
More significantly, the share of China in world trade in textiles, in 1994, was 13.24 percent,
up from 4.36 percent in 1980. Hong Kong, too, improved its share from 7.06 percent to
12.65 percent over the same period. Growth rate, in US$ terms, of exports of textiles,
including apparel, was over 17 percent between 1993-94 to 1995-96. It declined to 10.5
percent in 1996-97 and to 5 percent in 1997-98. Another disconcerting aspect that reflects
the declining international competitiveness of Indian textile industry is the surge in imports in
the last two years. Imports grew by 12 percent in dollar terms in 1997-98, against an average
of 5.8 percent for all imports into India. Imports from China went up by 50 percent while
those from Hong Kong jumped by 23 percent.

2
Global factors influencing textile industry

The history of the textile and clothing industry has been replete with the use of various
bilateral quotas, protectionist policies, discriminatory tariffs, etc. by the developed world
against the developing countries. The result was a highly distorted structure, which imposed
hidden costs on the export sectors of the Third World. Despite the fact that GATT was
established way back in 1947, the textile industry, till 1994, remained largely out of its
liberalisation agreements. In fact, trade in this sector, until the Uruguay Round, evolved in
the opposite direction. Consequently, since 1974 global trade in the textiles and clothing
sector had been governed by the Multi-fibre agreement, which was the sequel to an
increasingly pervasive quota regime that began with the Short-term arrangement on cotton
products in 1962 and followed by the Long-Term arrangement. After the successful
conclusion of the Uruguay Round in 1994, the MFA was replaced by the Agreement on
Textiles and Clothing (ATC), which had the same MFA framework in the context of an
agreed, ten year phasing out of all quotas by the year 2005. The section that follows takes a
brief look at the history of these protectionist regimes as also a more detailed look at the
MFA and the ATC.

Multi–Fibre Agreement (MFA)

On January 1st, 1974, the Arrangement Regarding the International Trade in Textiles,
otherwise known as the MFA came into force. It superseded all existing arrangements that
had been governing trade in cotton textiles since 1961. The MFA sought to achieve the
expansion of trade, the reduction of barriers to trade and the progressive liberalisation of
world trade in textile products, while at the same time ensuring the orderly and equitable
development of this trade and avoidance of disruptive effects in individual markets and on
individual lines of production in both importing and exporting countries. Though it was
supposed to be a short-term arrangement to enable the adjustment of the industry to a free
trade regime, the MFA was extended in 1974, 1982, 1986, 1991, and 1992. Because of the
quotas allotted, the MFA resulted in a regular shift of production from quota restricted
countries to less restricted ones as soon as the quotas began to cause problems for the traders
in importing countries. The first three extensions of the MFA, instead of liberalising the trade
in textiles and clothing, further intensified restrictions on imports, specifically affecting the
developing country exporters of the textile and clothing products. Increased usage of several
MFA measures tended to further erode the trust which developing countries had originally
placed in the MFA.

The MFA set the terms and conditions for governing quantitative restrictions on textile and
clothing exports of developing countries either through negotiations or bilateral agreements
or on a unilateral basis. The bilateral agreements negotiated between importing and
exporting country’s contained provisions relating to the products traded but they differed in
the details. The restraints under the MFA were often negotiated, or unilaterally imposed at
relatively short intervals, practically annually. The quotas could be either by function or fibre

3
Under the MFA, product coverage was extended to include textiles and clothing made of
wool and man-made fibres (MMF), as well as cotton and blends thereof. With regard to
applications of safeguard measures, import restrictions could be imposed unilaterally in a
situation of actual market disruption in the absence of a mutually agreed situation. However,
in situations involving a real risk of market disruption only bilateral restraint agreements
were possible. The Textile Surveillance Body (TSB) was set up to monitor disputes regarding
actions taken in response to market disruptions.

The MFA permitted certain flexibility in quota restrictions for the exporters so that they could
adjust to changing market conditions, export demands and their own capabilities. The MFA
also provided for higher quotas and liberal growth for developing countries whose exports
were already restrained. The MFA asked the participants to refrain from restraining the trade
of small suppliers under normal circumstances. In general, developed countries, under MFA,
chose not to impose restrictions on imports from other developed countries

The TSB ensured compliance by all parties to the obligations of bilateral agreements or
unilateral agreements. It called for notification of all restrictive measures. Unsatisfactory
experience with several extension protocols of the MFA, retention clauses, such as “good
will”, “exceptional cases”, and “anti-surge” and other trade related factors led the developing
countries to press for the inclusion of the textile issue in the agenda of the GATT Ministerial
meeting.

4
1.2 COMPANY PROFILE

1. Score for Pavathal Spinning Mills Private Limited is 68 out of 100 which is
considered good in Industry.
2. Pavaathal Spinning Mills Private Limited ranks 234th in India and 167th in Tamil
Nadu for its registered line of business Preparation and spinning of cotton fiber
including blended cotton (please note: ginning/pressing, baling activities are included
in Class 0140)., while there are total 2512 companies in India and 1586 in Tamil
Nadu which are registered with MCA having same line of business.
3. Pavathal Spinning Mills Private Limited ranks 711th in India and 194th in Tamil
Nadu for its registered parent line of business Preparation and spinning of textile fiber
including weaving of textiles (excluding khadi/handloom), while there are total 7363
companies in India and 1835 in Tamil Nadu which are registered with MCA having
same parent line of business.
4. Pavathal Spinning Mills Private Limited ranks 1338th in India and 225th in Tamil
Nadu for its registered top line of business Spinning, weaving and finishing of
textiles., while there are total 13813 companies in India and 2203 in Tamil Nadu
which are registered with MCA having same top line of business.
5. Score calculated using the 3CiScore 1.2 model, this score ranges from 0 to 100 and
measures overall strength of corporation. Scores are calculated using customer
satisfaction index, popularity and various publicly available data.

5
Infrastructure
Entire operations of the company are strategically located around 50km radius from
Erode, which is regarded as one of the Asia’s largest apparel manufacturing clusters. The
close proximity to buyers helps to reduce material handling costs and facilitates immediate
feedback on the quality of the product.

Manufacturing Capacity
Truly awe-inspiring
Spinning – per unit 14,112 spindles to produce 800kg of yarn per day
Power generation - 66 wind mills with a total captive power generation capacity of 61.92
MW.

Spinning:
Pavathal is one of the largest manufacturers of yarn in terms of installed spindles
capacity. The company has spinning mills with a total capacity of 14,112 spindles.
Together, they produce approximately 800 MT of cotton yarn per day of counts ranging from
10s to 40s. Every yarn produced adheres to the highest standards of quality.

Some of the sophisticated machinery in spinning division are:

1. RieterUnifloc from Germany
2. RieterJossi Vision Shield from Germany
3. Rieter Comber from Germany
4. Rieter Draw Frames from Germany
5. Zinser Simplex from Germany
6. Schlafhorst Auto Coner from Germany
7. Uster quantum clearer from Switzerland
8. TrumacBlowroom
9. Card TRUTZSCHLER
10. LMW Ring Frame
11. Sussen Compact Machine

6
Processing
Fabric Dyeing and Processing
The state-of the art fabric processing unit setup at SIPCOT integrates the fabric
processing activities of dyeing, bleaching and finishing. The unit has a processing capacity
of 9000 MT per annum and adheres to highest international standards.

Effluent Treatment Plant (ETP)

1. Zero Wastage. Zero Pollution.
2. 100% Commitment to environment protection.
Pavathal has installed an EIP with capabilities to treat 2.5mn liters day which enables
the company to reuse 100% of the waste water to the process again. Zero discharge systems
are achieved as per PCB norms. By doing this, Pavathal is committed to protect the fragile
eco-system of the planet, which is our gift to our children, our ETP stands tall as a model
recycling facility in this part of the world

The state-of the art fabric processing unit setup at SIPCOT, integrates the fabric
processing activities of dying, bleaching and finishing. The unit has processing capacity of
9000 MT per annum and adheres to highest international standards. Pavathal ETP is
acclaimed as a trend setter in erode textile industry. It has a capability to treat 2.5mn liters
per day and recycle the waste water.
Inspiring Facilities

1. Top of the line design studio

2. Top tier gerber & lectra spreader cutter
3. High end barudan embroidery machines, Japan
4. Power packed hebbeckker printing machines, Germany
5. Large, computerized, automatic storage facility from Godrej, India

7
Products

Product Development
Product development and sampling from a core part of our operations and a key
strength of business. We have created design studios across all our garment manufacturing
plants, coursed by world class designers from reputed fashion design institutes. We have an
active library of over 25,000 designs for knits with new designs being added to the portfolio
every day.

Yarn
Products encompass the entire value chain from cotton and blended yarn to fabrics to
garments. A significant portion of these portion of these products are cotton based
manufactured from both organic cotton and regular cotton. Pavathal yarn has unique identity
and stands exceptional in terms quality and durability. Variety of yarn produced includes
compact organic supper combed semi combed and obviously mélange very shortly.

10’S TO 40’s and 50's Semi combed &super comber of hosiery yarn, weaving, organic,
BCI,’S’ Twist and chessable dye cones. Grey mélange yarn of 100% cotton and polyester
cotton blend count range ne 20/1 to 40/1.

Pavathal Social Responsibility Activities

1. Community development
2. Health and safety
3. Higher education
4. Sports activities
5. Recreation facilities
6. Green initiatives
7. Credentials
8. Better corporate governance

8
Employee-friendly workplace
Pavathal workplace is designed to make employees feel at home, while providing them
with opportunities to learn and grow. At Pavathal, employees enjoy:
1. Nutritious food
2. Hostel facility
3. Hygienic and comfortable working conditions
4. Comprehensive medical & nursing facilities.

Vision
Our Vision to achive 14000 Spindles to 24000 Spindles

Mission
1. Quality Maintance

2. Production more than Improved

3. To achive One Day Production 6 ½ tones to 7 ½ tones

9
 1.3 ORGANIZATION CHART

Chairman

Managing Director

General Manager

Factory Manager Personal Manager

Spinning Master
Labour Welfare Officer

Supervisor Quality Shift Clerk

Control

Eletrical

10
1.4 SWOT ANALYSIS
STRENGTH
The significant operational expertise in the Apparel Sector enabled consistent growth
since inception. Some of the key strengths of Pavathal to compete successfully in the market
are.
1. Vertically integrated operations.
2. Superior Quality Products
3. Strategic location, near Asia’s largest apparel manufacturing cluster ‘Tirupur’
4. Advanced technology machinery and state –of-the-art plant
5. Strong and dedicated work force
6. Global scale of operational
7. Internationally accredited processes
8. Trusted client base, both National & International.
9. Strategic procurement of the best quality cotton facilitating smooth production plan
besides high quality products
10. Substantial self sufficiency in power needs through green power generation by windmills
that economize energy cost
11. Enterprising management team with rich experience in Textile and Apparel industry

WEAKNESS

1. High price
2. High lead time
3. Less variety of yarn
4. Low employees

OPPORTUNITIES

1. Quicker response to customer

2. To increase share in cotton products

THREATS

1. Heavy competition
2. More aggressive marketing by foreign competitors in small textile industry.

11
 CHAPTER II

FUNCTIONAL DEPARTMENTS
2.1 PURCHASE DEPARTMENT
2.2 STORES DEPARTMENT
2.3 PRODUCTION DEPARTMENT
2.4 FINANCE DEPARTMENT
2.5 HR DEPARTMENT
2.6 QUALITY DEPARTMENT
2.7 MARKETING DEPARTMENT

2.1 PURCHASE DEPARTMENT

All purchasing transaction on income goods transaction are done through this
department. The purchase procedure are initiated by the store keeper on a request can be
communicated usually to the stores authority by the plant engine or by written means or
through indent. The types and channels of purchase are decides by the purchase and the type
of products to be purchased will be decided with the previous purchase of items and types of
terms to be purchased.

Objective

1. To meet internal and external requirements.

2. To purchase reasonable cost items.
3. To meet customer’s delivery commitment.

Taxes

1. Viscose yarn 12% GST

2. Viscose fiber 18% GST

Cotton varities

1. Filament Yarn
2. Viscose Staple Fibre
3. Viscose Spun Yarn
4. Embroidery Thread

12
Key suppliers of viscose

1. Blended Yarn in Erode

2. Dyed Yarn in Erode
3. Embroidery

Arrival list

Entry

1. Gate
2. Entry slip
3. To put lot numbers

Arrival list

1. Payment list
2. Stock list
3. Issue list
4. Inventory list
5. Cotton outwork
6. Entry to stock list maintained

Invoice maintained machinery’s available

1. Blow room = 4- NSC, Laksmireitertrumac

2. Carding = 36-MMC, Texmaco
3. Drawing = 1- Lakshmi, texmaco, cherry, drawing
4. Simplex = 14-Lakshmi reitertrumac, toyoto MMC
5. Spinning = 65- textrol MMC
6. Doubling = 19- textool
7. Crowing = Textool

13
2.2 STORES DEPARTMENT

It is one of the service department. Store keeping is a service function, which deal
with the physical storage of goods under the custodianship of a person called storekeeper or
store controller.

Stores Control

Inventory control can be as a system used in manufacturing concern to control the

firm’s investment in stock. They system involves the recording and monitoring of various
stock levels. forecasting future demands and deciding when and how much quantity accorder,
the overall objective of inventory control is to minimize the cost associate with stock,

Objectives of Stores Management

To reduce financial investment in inventories

To facilitate production operations

To avoid losses from inventory obsolescence

To improve customer service

Stock Maintenance

1. The storekeeper checks the requirement material once in 15 days.

2. The company is following first in first out (FIFO) method
3. This company has bin card maintenance. It has material name, receiving time,
numbers of items, stock level.
4. The material covered by store is to be cleaned.
5. The store department should have insurance coverage.
6. Check the insurance coverage receiving and returning goods packing.

Inventory Control Procedure

One of the most important ways of ensuring the investment in inventory under control
is to check all items inventory on regular basis. Once a physical check has been carryout the
results can be compared with the theoretical or book inventory and any discrepancies noted
on three chief methods

1. Perpectual Inventory
2. Continues Inventory Checking
3. Annual Inventory Checking

14
1.Perpectual Inventory
Perpectual inventory is concerned with recording as they occur of receiptissues and
resulting balances of individual items of inventory either or value the term perpectual
inventory refers to a system of inventory control rather than an inventory talking systems

2.Continues Inventory Checking

Continues stock taking is the process of counting and valuing selected items at
different times and rotating basis. A process were by all inventory items are physically
counted and then valued on periodically is called as inventory checking.

3.Annual Inventory Checking

Annual inventory checking is a periodic checking and is most usually carried out as
a part and with the annual inventory check all items in inventory are checked at one item.

15
2.3 PRODUCTION DEPARTMENT

Raw Material
The firm mainly purchases Cotton, Polyster, Viscose and color chemical raw material
purchase based on demand. Customer wants to be rectified. And other raw materials are
polyester stable fibre. Visco stable fibre, and silk. Accurlik and raw cotton. Purchases are
deliver through lorries based on load lot numbers.

1. Viscose Stable Fiber

2. Made Stable Category

Production process
This department is further sub-divided into various sector. They are
1. Mixing
2. Blow room
3. Carding
4. Comber
5. Drawing
6. Speed Frame
7. Ring Frame
8. Auto Coner
9. Dubbling
10. Cone winding
11. Packing

16
Mixing
This department plays an important role. In this department, the varieties of cotton are
mixed, according to their length, strength, fineness and maturity to get the required counts of
yarn i.e 60s, 80 etc. Usually four buckets of water and one litter firm soap oil is sprayed on
the spread cotton and kept for 24 hours before the next process.

Blow room
Mixed cotton is cleaned by removing the foreign and waste. This may consist of
seed, etc. The output from this process is a uniform and clean sheet like rolled in a rod and is
known as LAP.

17
Carding
The proverb of the experts says, well carded is half and “effective carding, efficient
spinning”. The proverb demonstrates that the immense significance of carding is the final
result of the spinning operation.

Carding process
The laps that are produced in a sheet from are sent to the carding section. The main
aim of carding is to eliminate short fibers and also elimination of labs which are formed in
the below room. The process done here is that the cotton is completely open into individual
fibers and the dirty matter and naps are removed.

Cared sliver
The sliver produced after normal carding in the form of long thread like fibers called
as carded sliver. These carded sliver are sent to drawing the next stage.

Combined sliver
The combined sliver’s aim is to further remove short fibers and lap that are still
present in it. The computer process means just like we comb over hair. In this combing
process short fibers are removed and fibers are arranged in parallel formation. This combed
sliver is the quality of sliver that the carded.

18
Sliver lap
The carded sliver is fed and by pressing them it is transformed into lab from. The
output is called as sliver lap.

Ribbon cup
The sliver lap is fed and by drafting process it is converted into a ribbon lap.

Comber
It is the high quality process. This process produces the high quality sliver. It is the
next stage of carding. Then go to sliver into the simplex and spinning. The main difference
drawing and comber is producing the high quality combed yarn. Also 20% waste reduced the
drawing process
1. 20 sliver converted into single comber lap
2. Per comber lap producing time 7 minutes
3. Per comber lap have 3.5kgs eight.
4. Eight-comber lap converted into single comber sliver
5. Get the output time of the comber sliver within 2.5 hours.

19
Drawing
It is the fourth stage in the manufacturing process. In the eight sliver can be
converted into single sliver. Again 8 single can be converted into one sliver. These are 8
machines installed in the drawing room.

Speed Frame
Simplex is an intermediate process in which fibers are converted into low twist lea
called roving. The sliver which is taken from draw frame is thicker so it is not suitable for
manufacturing of yarn. Its purpose is to prepare input package for next process. Objects /
Functions of Speed Frame. Speed Frame: Simplex is an intermediate process in which
fibers are converted into low twist lea called roving

20
Simplex operation
Sliver is converted into “Roving”. In the process sliver size is decreased. There are 8
machines located in the simplex operation. Each machines has 20 spindles. Spindles men
rod or shaft rotating which twist the rove.

21
Processing time
40s and 41s output get within 2 hours
80s output get within 4 hour
Spinning / Ring Frame
Spinning is the twisting together of drawn-out strands of fibers to form yarn, and is a major
part of the textile industry. The yarn is then used to create textiles, which are then used to
make clothing and many other products. There are several industrial processes available to
spin yarn, as well as hand-spinning techniques where the fiber is drawn out, twisted, and
wound onto a bobbin.

22
Cone Winding
During the winding process of yarn, following objectives are met. Electric
Scanners (Uster) are used for checking and elimination of yarn faults during the winding
process. This process is called Usterlization of yarn.

Doubling
Twist the double thread into single thread. There are 32 doubling machines being the
doubling section. Each machine has 400 spindles. Twist than yarn according to the order
according to the basis. For example
2 yarn X 40S Count = 2/40s
2 yarn X 60s Count = 2/60s
23
Packing
Packing refers to the activities of designing and producing the container or wrapper
For a product. There are two type of packing used cone packing and According to the
customers requirement the packing is done by the packing department. Cone packing is done
using man power.

24
25
2.4 FINANCE AND ACCOUNTS DEPARTMENT
Finance statements are prepared primarily for decision-making. They play a
dominant role in setting the framework of managerial decision. The term ‘financial analysis’,
also known a analysis and interpretation of financial statement refers to the process of
determining financial strengths and weakness of the firm by establishment strategic
relationship between the items of the balance sheet, according to Metcalf and Tigard, “is a
process of evaluating the relationship between components part of a financial statement to
obtain a better understanding of a firm’s position and performance”. The purpose of financial
analysis to diagnosis the information contained a financial statement so as to judge the
profitability and financial soundness of the firm.

The rapid expansion of business all over the world is a clear consequences of the
population increase, growth of technology and multiplication of wants. Expansion of business
involves industrialization as well development of distribution activities. Along with the
tremendous of business these has occurred a vast improvement in management of business
units. The basis of all management is accounting which is concerned with the ascertaing and
analysis of business units.

Accounts Section
Bill of all procedure is received in accounts department, all accepted goods are
matched for the bills and accounted sales bills are with the delivery chelan and accounted.

Cash Section
All cash and credit transaction are generally debit in the accounts department, they
purpose order form the stores and the invoice form the original supplier. They match the both
invoice and purpose order and make the pament.

Book Keeping
Book keeping is that branch of knowledge which tells us how to keep a record of
business transaction. It is considered as an art of recording systematically the various types of
transaction that occur in a business concern in the books of accounts “Book keeping is the art
of the recording business transaction in systematic manner

26
Book maintained by accountant
Bank – cum daily cash book
The book is maintained to record all daily cash transaction. There are separate
column is this book as to identify the expenses of each department.

Petty cash book

Smaller expenses are recorded in the petty cash book following are some of the item
which were in the petty cash book. Expenses are cotton expenses, livestock expenses, motor
car expenses, etc…

Cotton Ledger
In this cotton ledger particular like cotton supplier. The amount of the raw cotton
supply, amount paid etc.., are recorded separately for each individual.

Cotton Waste Sales Ledger

Waste cotton is get during production. It cannot be used. It is sold once in three
month. The journal entries are recorded for both sales and waste cotton.

Yarn Sales Journal

The sales during the period will record in this book. All transaction are recording
scales will be passed with clear indications.

Stores Purchases Journal

All the transaction of the stores purchasing are recorded in this journal. The stores
department will sent clear evidence for purchase and for payment.

Generator Maintenance Book

This book records repair, service and other consumption. Statement are recorded in
computer the financial controller prepares the annual report an submit to the board.

27
2.5 HUMAN RESOURCE DEPARTMENT
It plays an important role in every concern, it contaims details like whether the
worker enter the textile at the timing. Whether security maintains the records property and
submits to the officers the next morning. The reported are collected by the supervisor.

Roles of HR Manager

The HR & Personnel Manager officer a combination of design and execution of

functions. These involve developing policies, while working closely with the top
management. The company offers the following opportunities in HR & Personnel Manager.

1. New Initiatives

2. Performance Management

3. Recruitment & Selection

4. Training

5. Induction program of newly joined employees

6. Industrial relationship with leading organization

7. HR audit

8. Licensing with government officials

28
HR Polices

1. Equal Opportunities Employer

2. A Good Pay Master

3. Employee Development

4. Respect For People

5. Work Life Balance

6. Training & Development

Employee Details
Total employees are worked in 334 employees. Weekly Wages 320 and Monthly
Salary 14 members

Employee Safety
Before induction, the employees are all well-taught and trained on the necessity
and the mode of usage of various safety devices detailed below:
1. Helmet, Safety belt and Shoes for the employees working at relevant Area.
2. Ear plug and Ear for those working at generators, compressor and at Auto Coner.
3. Safety Gloves & Apron for the Workers handling Chemical. Goggles for those
engaged in Welding.

Higher Studies
Pavathal always believes that a work place should develop as learning and growing. It
supports community education to empower people at all level to facilitate creation of high
literate generation for sustainable livelihood. It helps the people to realize their potential and
build a cohesive family.

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Holidays,
The provide 9 days holidays with nine days are Pooja Function ,Pongal, Republic day,
May day, Independence day, Ganthi jayanthi, Deepavali.

Educational Qualification
The educational qualification should be 8th std and above. No adolescent workers are
encouraged.

Formation of shift system

Office working hours ‘eight’
Morning 9am to 5pm
The shift are available for workers

Shift Time
First shift 6.00am to 2.00pm
Second shift 2.00am to 11.00pm
Third shift 11.00am to 6.00pm

Staff Selection

Staff selection is done through interview by the general manager. During the
selection process, the company considers the following aspects.
1. Qualification and previous experience
2. Emotional
3. Moral and social qualities
4. Honesty
5. Loyalty
6. Competency

Classification of Workers
1. Permanent
2. Apprentice
3. Trainers

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Specification of job card

Worker Card Colour

Permanent Green colour
Trainers Blue colour
Mixing Blue colour
Blow room Blue colour
Carding drawing Yellow colour
Simplex Yellow colour
Spinning White colour
Cone winding/auto Red colour
Packing Blue colour

Age Limit
People who were below 18 years age are not allowed to work in the factory.

Welfare Measures

Labour has a dynamic role to play in the economic development of the country. It
rapid industrialization of the country is to be achieved, one of the most vital factors would be
prober handling of the labour. The important of labour in the industrial system and in the
planned economy of the country has been recognized. Thus by providing welfare measures
labour can be kept satisfied to work satisfied to work for the organization and ultimately for
the nation as whole.

Welfare Facilities
The workers are provided with the following facilities.
1. Canteen Facilities: The token system is being followed. Permanent workers can get
a token book once in a month and amount will be deducted from their wages.

1. Hospital Facility: The management provides the hospital facilities for the workers.

2. Safety measures: Adequate safety arrangements have been made drinking water it’s
provided at suitable points conveniently for the employees. Sufficiently supply of
wholesome drinking water is provided.
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 3. Latrines urinals and bathrooms: In the concern separate enclosed accommodation
of latrines urinals of prescribed type of for male and female workers shall be
provided. It is adequately lighted and ventilated. Sanitary workers are employed for
keeping the latrines and washing places clean.

4. Rest rooms, shelter and lunch room: As there are more than 150 workers are
ordinary employed, adequate and suitable rest rooms and suitable lunch room
provided.

5. Travelling Allowance: The concern has provided the van facilities on free of cost.

6. Leave card system: Each employee is provided leave card and kept in the custody of
this department. Supervisor if an employee wants to go leave he was to update his
card and get signed his immediate and personnel manager department head.
Days

Days Wages

1 to 15 days 15 days wages

15 to 30 days 15days wages

Minimum wages
Days Minimum wages
13 days Rs. 140/- shift
14 days Rs. 170/- shift
15 days Rs. 235/-shift

Monthly two times the wages are provided for workers.

1. Bonus: The employers pays bonus to the employees to stimulate them in the
production process. They will give bonus to workers once in a year Diwali. The firm
will give minimum 8.33% of bonus.

2. Provident Fund (only labour staff): The company is deducting 6.5% of basic and
dearness allowance of employer’s and 5.5% employee’s for contribution towards

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 provident fund and the company is contributing 12% contribution. In this 3.67% goes
to provident fund and the remaining 8.33% goes to family pension scheme.

3. Gratuity and ESI employee state insurance: ESI facility is available in the
organization. The employer’s share 4.75% and employee wages 1.75% totally 6.50
within 21days of the registration. The employee has a group photo of his family and
IP dependant only. The employee gets 70% of salary during accident periods based
on injuries and wound and his family member also get these facilities.

Increment
Increment for workers like apprentice, trainees is based on their work. Six months once
increment provided with increased 5 rupees. In starting period 50 rupees for 15 days and
after 13days the worker continuously worked Rs.190 will be given.

Recruitment
Once year in a year, in the month of January, recruitment will be held by Managing
Directors.

Performance appraisal
Performance appraisal is based on weekly basis checked by supervisor.

Opportunities for Employee Enrichment

1. Sorts training by professional Teachers supported by sports events
2. In-campus facilities for volleyball, shuttle, throwball, kabddi and kho-kho
3. Swimming pool
4. Yoga and meditation classes
5. Music classes
6. Cultural activities
7. Auditorium for screening movies
8. Outstation picnics

9. The work folk recruited from remote villages are provided with learning amenities
such as:
10. Higher education programs
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 11. Computer (I.T)Education
12. Vocation training courses such as teacher training, tailoring nursing etc..,
13. Library facility

Pavathal has tie ups for higher education training programs with Annamalai
university. Alagappa university and Tamilnadu open university which have helped over 7000
employees to complete higher education enabling them to study during their employment
and become self reliant. There are sufficient classrooms and competent teaching staff. Every
year Pavathal contributes considerable amount towards higher education of employees.
Pavathal believes that while government’s initiatives towards primary education in small
villages create literacy awareness among the people, the efforts of Pavathal facilitates up-
gradation of their literacy levels to graduation. Pavathal has made a commendable
contribution that is acclaimed as one of the best in the corporate world.

2.6 QUALITY CONTROL DEPARTMENT

Quality
Quality is never an accident it is always the result of intelligent efforts.

Quality policy
Committed to satisfy the customer by supplying quality yarn, confirming to agreed
specification. This is achieved by timely delivery, involvement of all employees and
continual improvement with an effective quality management system.

Quality Control Department

This is mainly consists of four departments.
1. Raw material quality checking
2. Semi- finished /processing goods production quality checking
3. Final product that is yarn checking
4. Final inspection on package stage.

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Quality Control

Cotton yarn (CHY) Fines, waste, strength

Weaving Yarn(KHY) Strength, uniformity, elongation
These are the checking’s in the raw material to check the quality.

Laboratory testing
1. Microbalance
2. Ulster tester3
3. Strength
4. Uniformity

Micro balance
Co-efficient of variation in weight basis checking to use micro balance and rap real
and check he count also

Black board

Gene al yarn appearance and SQC department

Strength
Lea strength test instrument to check the uniformity percentage

Lap and blow room

Weight =co-efficient of variation
Sliver=count, co-efficient of variation uniformity strength
On arrival each and every bale of all arrived lots are subject to quality assurance
approval. The quality firm cotton is assessed by test done both manually and electronically.
By manual method the cotton is tested using “Bear Sorter”.

The electronic method utilizes “SPINLAB HVI-900” machinery. The testing process
is very fast and also accurate. If the lot conform the basis sample then it is accepted
otherwise, it is rejected and returned to supplier and the same is recorded in vendor
evaluation record

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Product Testing
It is the final testing in the product to find the imperfection. The buyer accept the
495-imperfection condition within the 100 kilometres yarn.

Twist Per Inch

Strength

Condamination

Hairness Syntax

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2.7 MARKETING DEPARTMENT

The main products of the company are your which is the raw material for manufacture
of finished goods like cotton, viscose named viscose stable fiber (VSF)which are mainly used
in weaving for pants and shift. The company is worked through established dealers.

Export Market
The yarns have specific application which is manufactured according at the
specification of the buyers. The company is exporting yarn to the domestic market like
Mumbai, lchalkaragi and also sells in local market like Erode, Tirupur, Karur, Thekkalur and
Pallipalayam.

Main Market Dealers

 Erode
 Mumbai
 Delhi
Customers
 Bannaari Amman Textiles
 K.P.R Knitting

Future plans
Future plans of Pavathal textiles limited are to increase the direct export export and
also to produce the high quality products and the customer satisfaction and modernization.
The textile industry is packing from the last quarter of 2007-2010 company will be able to
show a better performance during the current year. The company show better performance in
next year.

Plan
1. Machine modernization
2. Increase product quality
3. Workers training program
4. Own power generation planning

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Channels of Distribution
The distribution channel is in a small circle, because it is a semi- finished product.
The company mainly distributed through vehicle like truck and lorries.

Product Diversification
Product diversification is to produce color yarn and the mixing of cotton and polyester
their percentage.

Advertising Media
There is a proper advertising media is used but advertisement is done through inter
company magazines.

Credit terms
The company is having the policy of selling the goods on cash and carry. But in
exceptional vases, for some customers will extend credit to the extent of 15 days time.

Competitors
The competitors of the company are Sivasakthi spinning mills, Sugavaneswara
spinning mills, Sabare mills. In Saampavi textile limited the prices is fixed not he basis of
competitors price, but according to market demand for yarn.

Strategies used for selling

Sales are based on rate fixing from count based.

Marketing Research
Research is done by customers have get a sample from company to wave it and after
the purchase.

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 CHAPTER III

LEARNINGS

During the internship training I had studied the policies and functions of each
departments. In this industry they have maintained the monthly transaction, employee salary
and other aspects perfectly and record has been kept safely. The trainee learned about
employee file management.

The ultimate goal of introducing such a program of internship project preparation in

the academics by the department of finance was to prepare for taking up challenges in future
so as to have a practical knowledge about the companies and its operations.

1. The details pertaining to each employee in a systematic manner.

2. Learned how the training effectiveness is being determined.
3. The trainee also learned about Do’s and Don’ts in an organization. Like
incase of reporting, approaching the employee for management etc.
4. Learned how to brief about the organization for the candidate.
5. I have learned the market strategy in industry.
6. In this project I have got practical knowledge.
7. I could understand the SWOT of the company.

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 CHAPTER IV
CONCLUSION

This internship at Pavathal Spinning Pvt, Ltd was found very useful. The information
gathered about the company and the activities carried out in various functional departments
made to understand the real time experience and practices and the practical functioning of Sri
Pavathal Pvt, Ltd. The internship project was done for a period of one month which gave me
in-sight knowledge of all the functional departments and their functions. The employees right
from top level to lower level help me gaining the knowledge and guided me in a right way.
This organization has a very good environment; they provide various welfare activities to
protect safety to the workers. The company also supported me for doing the project
successfully and overall performance of the company is highly satisfied. Interacting with
different type of people was a good learning experience about the organizational culture.
Finally, I conclude that this training was really a good learning experience and was helpful
to my academic and future career.

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 BIBLIOGRAPHY

Books
1. Mehta, S.D. (1954), Cotton Mills of India, 1854 to 1954, The Textile Association of
India, Bombay, 1954.
2. Maheshwari S.N., 2003, "Cost &management accounting" Sultan Chand & Sons, New
Delhi.

Website
1. https://www.justdial.com/Palani/Pavathal-Spinning-Mills-Pvt-Ltd-
Neikkarapatti/9999P4545-4545-110219115909-V5C2_BZDET
2. vrico_dindigul@yahoo.co.in

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