CONTENTS

S.NO PARTICULARS Page No

1 INTRODUCTION
1.1 History of the company 1
1.2 Objective of the company 2
1.3 Objective of the study 3
2 PRODUCTION FUNCTION
2.1 Production process 4
2.2 Purchases of raw material 8
3 DEPARTMENT FUNCTION
3.1 Stores department 11
3.2 Sales department 13
3.3 Accounts department 15
3.4 Costing department 17
3.5 Personnel department 19
3.6 Other service 22
4 CONCLUSION 25

CHAPTER -I

INTRODUCTION
1.1 HISTORY OF THE COMPANY
M/s Selva Ganapathy textile has been started in the year 1992. It
Commenced business is a partnership firm. The registered office and factory is
situated at S.F No 110 vanchiya puram Road suleeswaren Patti (P.O), Pollachi
(T.K) Coimbatore District.
The company Partner's
1.R.G.prabhu Ram
2. Indirani Ganapthy
3. A.P. Aathi sakthi

The partner is taking part in the management of the company. The partner is
having rich experience in textile industry. They are very familiar in power low
sector and more than 70 percent of the yarn production from the mill is utilized
for their own weaving unit. The company is registered as a textile spinning unit
under TNGST and CST ACT. TNGST Reg No.vat-33622280948 and CST Reg
No:609597

The company is surrounded by several village with adequate Labour force

therefore the production will not be hampered for want of efficient Labour.

The company share capital 17.25Lakhs Entire share capital is held by all
partners.

The company mainly prepare in three accounts.

1.Manufacture account
2 Profits and loss account
3.Balance sheet

.
1.2 COMPANIES OBJECTIVES
The following is the objectives of Selva Ganapathy textiles
• Not to employ child labourers
• Manufacturing of High Quality Goods
• To increase Production Volume
• Motivating workers by paying sufficient bonuses
• Providing labourers with pleasant working conditions
• To inculcate disciplinary habits among labourers and
• Satisfying workers needs and expectations

1.3 OBJECTIVES OF THE STUDY

Institutional training has been carried out with the following objectives.
• To ascertain the history of the Selva Ganapathy textiles
• To identify the production process and
• To identify the functions of various department
 Cotton

Ratio Proportionate

Blow Room

Carding

Drawing

CHAPTER -II
Simplex

2.1 PRODUCTION PROCESS Spinning

The following diagram illustrates the production process of from the Selva
Ganapathy textiles conversion of cotton into Yarn.
Winding

Out Put (Yarn)

Packing
2.1.1Blow Room

The process of blow room is beating, opening, and cleaning. A blow room line
consists of opening, cleaning, mixing and lap making machines. The cotton
received in the form of hard packed bale. It contains several impurities. In blow
room, impurities that are found in the cotton is removed or purified. The blow
room is installed with two machines amounting to Rs. 5,00,000.

Under this process, cotton converted into cylinder like shape. Blow room
process takes around fifteen minutes. To operate a Blow Room machine a
single labour is sufficient.
2.1.2Carding

The process of carding is fiber separation. Cotton in the laps is arranged in a

series of unopened tuffs of fiber which are in different size. During this process,
card separates these fibres into individual elements by exporting and removing
the strains and other matters and passes on to the next process. Carding room
is installed with four machines and the worth of the machines is Rs. 20, 000.

2.1.3Drawing

The main objective of drawing is to reduce the weight of material. Drawing is

to straighten and parallelize the individual fibers in the carded sliver and to
reduce its size.
Silver passed in several pairs of rollers one by one all running with different
speeds. The unit that comprises of these rollers is termed as “Draft System”.
Drawing room is installed with three machines named as “Breakers”.
2.1.4 Simplex

Roving is a process, where the silver reduced as to the suitable size for carrying
out the ring spinning.
A roving the product of the complex process may be defined as a continues,
slightly twisted strand of cotton fiber which has not received its purpose of the
roving operation is to reduce the silver to a suitable size for ring spinning.
These rolled in a bobbin for further use.
Simplex room consists of three machines. Each and every machine worth Rs.
20, 000

2.1.5 Spinning

Spinning is the process to produce yarn. The main objectives of spinning are to
reduce the size of the strand of fibers, which is now in the form of a roving to
the required final thickness.
To impart the necessary twist of this finally bound to give the final yarn with
the required strength. Spinning department has a total strength 15068 spindles
in 33 machines. Out of thirty three machines, seventeen machines are with 476
spindles and the remaining sixteen machines are with 436 spindles. The total
production per day is 320 kilograms of yarn.

2.1.6 Winding

Winding is the process of production of cone. The yarn from the spindle
bobbins covered on a large package in either the cone form or cheese form.
Whenever a break occurs during winding, knot is put with the help of knotted or
spliced by means of spillers to have knotless yarn.

In Selva Ganapathy textiles there are nine winding machines. Cone winding is
the final process in production. The finished yarns are sent to the market after
they are packed.

2.1.7 Packing

The final stage is packing of finished products so as to protect goods from

damages. As per the customers instructions packages are carried out.
In packing 1 bag = 40 cones.
1 cone =1.25 kg.
1 bag = 50 kg.

2.2 PURCHASE OF RAW MATERIALS

The major raw material required for the production is:

• Cotton
• Polyester

2.2.1Cotton
For production of yarn 100 per cent pure cotton is needed. Several
varieties of cotton are purchased for production of yarn. Presently, the

company purchases MCU-5 variety of cotton from the state of Gujarat

and Andhra Pradesh. For procurement of required quantity of cotton at the
required quality, the company appoints the broker. Further, the company
conducts meeting frequently with the various suppliers of cotton and decides
the suitable quality to be purchased.

The purchase price of cotton is Rs. 90 per kg and for as a bale the price is Rs.
170 kg .

2.2.2 Polyester

Polyester directly purchased from Reliance Companies, Nagpur and

Indorama. The price of polyester is Rs 70 per kg and for bale the price is Rs.
400 per kg.
 Usually, the company made a credit purchase and the settlement may be
made within thirty days. If the payment is made within the prescribed or as
determined by the buyer and seller, the supplier provides cash discount facility.

If goods are not supplied within the stipulated period, then the buyer may
avail five per cent discount at the time of total bill payment.
The Selva Ganapathy textiles has to remit or pay 90 per cent of the value
of raw materials within in 30 days from the date of receipt of goods. If the
company has not paid the money within in the stipulated period i.e. 30 days to
the supplier, then the supplier will charge 20% interest on the bill amount
outstanding.

2.2.3 materials are purchased from various institution

Selva Ganapathy textiles procures various materials like machinery, Raw

Materials from the following institutions.

S.No. Material Institution

 Raw material
1 Private purchase
(MCU-5 cotton)
Cones, HMHT bare Poly Woven
Government
2 Sacks, Wooden Skewers, Wooden
Co-operative industry
Rollers
Larksome Machine
3 Machinery
Works
Erode Bobbin
4 Bobbin Manufacturing
Company
5 Lubricants Indian Oil Corporation
LMW and Premier
6 Electronic yarn cleaner
Polychromic

CHAPTER -III

DEPARTMENTS AND THEIR FUNCTIONS

3.1 STORES DEPARTMENT

Most of the company failures are due to locking up of huge amount of funds in
stock. Either, over stocking or under stock both are not worthwhile to a
company. Hence, maintenance of optimal stock does not result in shortage of
working capital.
The main function of stores department is to supply raw materials and other
peripherals without any interruption to the production centers or units. The
main duty of storekeeper is to ascertain that sufficient quantity of goods is
supplied with superior quality at the right time. Storekeeper has to maintain
the complete list of raw material and peripheral suppliers along with their price
list to contact them immediately during emergency circumstances. Similarly,
the gatekeeper should not allow anyone to carry goods outside the company
without receiving the permission from the storekeeper.

Storekeeper has to decide the minimum and maximum quantity of materials to

be stored in the go down. Further, the storekeeper should place orders based
on the requisition made by the concerned departmental heads and based on the
reorder level as he maintained place orders with the supplier of raw materials
and other peripheral suppliers. Under no circumstances, the storekeeper should
not allow the raw materials to go below the danger level.

After receiving the goods, it is the duty of the storekeeper to ascertain or verify
that the goods received are match with the specification mentioned. If there is
any deviations, the storekeeper should receive the explanations for the same
from the supplier else. If the explanations are not satisfactory, then the
storekeeper should return the goods once again to the supplier.
Functions of the Storekeeper

Following is the functions of Storekeeper

1.) The storekeeper is in charge for all the goods which is under his control
2.) Storekeeper has to maintain all records relating to materials inwards and

materials outwards and

3.) Maintenance of tax paid or remitted while carrying

Electrical Goods -12.5 per cent

Mechanical Goods – 4 per cent

In go down, raw materials (cotton) and the waste cottons are stored. In the
newly purchased cotton, the total waste is 10 per cent; out of this, waste five per
cent of reused with eight per cent of polyester extra wastes are sold to other
mills once in three months.

The waste yarn processed in the machinery and converted in to cotton, and the
converted cotton used for mixing. The newly produced yarn is tested in central
testing lab. When this yarn is sold 4 per cent of sales tax is levied.

3.2 SALES DEPARTMENT

The success of any business concern resides on the performance of sales

department. Sales department plays a vital role in achieving the company’s
 objective i.e. to earn huge profit, reduce cost of production by having more
sales. Sales may be raised by adopting suitable promotion strategy.
Company carries of its sales operations either through:

• Through Department Agent

• On Consignment
3.2.1 Through Department Agent

The company appoints its own department agent as and when required. The mill
dispatch goods according to the demand raised by the department agents. The
agents will receive the goods and their turnover depends upon the efficiency of
the agent.
The department agent issues invoice at the time of sales. He has to remit the
money to the company within seven days from the date of sales. If he fails to
remit money within seven days, then from the eight day onwards the company
at the rate of 26% will levy penal interest. The department agent receives
commission of 1.5 per cent on ex- mail value as consultation for his service
rendered.

3.2.2 Consignment Sales

Regarding consignment, goods dispatched according to their customer needs. In

both the cases sales tax and other local tax will be paid by the consignment
agent. He has to send the details of expenses regarding the sales of goods to the
mill.

3.2.3 Waste

The success of the company also depends on how the company minimizes its
waste during its production process. The success history of many of the
company’s beginning by optimal utilization of resources (Raw Materials) i.e. by
minimizing the wastage.
There are three types of waste:

• Saleable waste – 10 per cent

• Useable waste -- 0.5 per cent
• Hard waste -- 14 per cent
The company reutilizes the wastages as possible as feasible for their future
production based on its quality of the wastages.

3.3 ACCOUNTS DEPARTMENT

All the transactions are, whether cash sales or credit sales, maintained in
accounts department. Mostly cash sales should be preferred, if credit sales are
made, the debt collection period should be to short so that financial crunch in
any company may be avoided.

The accounts officer maintains the accounts of the company, to ascertain the
financial position of the company. Various kinds of books are maintained they
include:
 Sales Ledger

 General Ledger

 Cash Book

 Purchase Ledger

 Bank Book

3.3.1 Sales Ledger

The goods sold on credit are entered. The accounts of each and every customers
individually debited in this ledger. Once in every month Sales ledger is
balanced. A list of sundry debtor analysis is taken to keep position of such
debtors and to have a follow up.
3.3.2 General Ledger

All accounts other than debtors and creditors accounts like capital, drawings,
income, expenditure and properties are recorded in it.

3.3.3 Cash Book

All the cash dealings are entered in cash. The main object of the cash book is to
keep record of all cash transactions along with cash received and cash payment
made on day to day basis. Holding of too much cash or maintaining low cash
balance, both are not suitable to a business concern. So, a concern has to
maintain an optimal cash balance in order to maintain its liquidity.

3.3.4 Purchase Ledger

This ledger is used for the purpose of recording all the goods purchased on
credit. The account of each person supplying the goods individually credited in
the ledger. A list of sundry creditors is prepared at the end of every month to
keep side their position, so that necessary funds would be made available to
settle the bill.
3.3.5 Bank Book
Mostly all business concerns carry out their business transactions routed
through the bank so that their work can be minimized. Further, by giving
standing instructions to their bankers, the bankers made payment to the
company’s creditors (i.e.) suppliers.
The transactions, which carried out through the bank are recorded in the book.
During emergency circumstances, the banker lends financial assistance by way
of allowing overdraft facility.
Selva Ganapathy textiles maintain their business transactions account and
employees related accounts with the Indian Bank, Pollachi.

3.4 COSTING DEPARTMENT

The main aim of costing department is to control cost of production and cost of
sales. By prohibiting unnecessary cost the company earnings are raised.
Following functions are looked after by the costing department.
 Cost and contributions of analysis of the product made count mix to

attach maximum profits.

 They are preparing daily cost and contribution statement and forwarding
it to the head office.
 They are preparing weakly critical reports analyzing one week’s
activities of the mill that is to be discussed in the weekly meeting of the
head office and also the statement of progress and achievement as
compared with turn around. Strategies are fixed by the head office.
 Every month they are prepared monthly cost and contribution for
recounts run during that month in detail.

3.4.1 Total Cost Analysis

While ascertaining total cost for manufacturing a commodity or a product
following expenses are also considered:
1. Selling Price
2. Variable Expenses
 a) Power
b) Stores Spares
c) Direct Wages
d) Packing Material
e) Short-Term Interest

f) Working Capital Assets

3. Contribution = Selling Price - Variable Cost

4. Fixed Cost
a) Indirect Wages

b) Salary
c) Administrative Expenses

d) Long Term Interest

e) Depreciation
f) Other Floating Overheads

g) Cotton Carrying Charges

Contribution is equal to total fixed expenses and profit. If the contribution is

more than fixed expenses it shows profit. If the contribution is less than fixed
assets, it shows loss. At this analysis, they are considering ex-mail price
(excluding selling cost) only.

]3.5 PERSONNEL DEPARTMENT

The main function of personnel department is to supply sufficient number of

labourers without any interruption. Further, the personnel department tries to
build up a harmonious relationship between management and the labourers.
Supplying of right person at the right time is the main objective of personnel
department. Based on the efficiency and experience of a labour he should be
placed in a work which gives him a full satisfaction.
Personal department is responsible for recruiting and arranging training
facilities to the labourers / employees.

Labour demands are represented to the management through the personnel

department simultaneously; management expectations are communicated to the
labourers by the personnel department.

Personnel department is an extension of general management that are

promoting and stimulating every employee to make his fullest contribution to
the purpose of business.

3.5.1 Functions of Personnel Department

 Maintenance of Attendance Register

 Preparation of Pay Bills including sales branches

  Maintenance of Provident Fund Record and forwarding

the claims like settlement loans etc.,

 Aids to settle the personal problems of each and every

employee
 Personnel department controls general activities

 Safety classes are arranged by personnel department

3.5.2 Time Office

It is the duty of time keeper to maintain the time of entry and exit of each and
every worker / employee.
The factory is running 24 hrs continuously. Working times of labour are divided
into three shifts such as 1st shift, 2nd shifts, 3rd shifts

SHIFT SHIFT TIME HOURS

7.30 a.m. to 3.30
1st shift 8
p.m.
3.30 p.m. to 11.30
2nd shift Half night 8
p.m.
11.30 p.m. to 7.30
3rd shift Full Night shift 8
p.m.
7.45 a.m. to 5.30
General shift General shift 9.45
p.m.

For the earlier three shifts the lunch time is half an hour. For general shift the
lunch hour is one hour.

3.5.3Age Limit

The person who are above the age of 18 year are eligible for recruitment i.e.
child labourers are strictly prohibited and the labours should possess a
minimum educational qualification of 8th standard. The labourers who
completed the age of 58 years are given retirement.

3.6 OTHER SERVICES

3.6.1 Provident Fund

In order to cater to urgent needs or old age needs employees provident fund
scheme was introduced during 1952. The main aim of introducing this scheme
is for the welfare of employees.
All permanent employees are eligible to join in employees provident fund
scheme. Those employees who are below the age of 58 years are eligible to join
employee provident fund scheme.

3.6.2 Employee Deposit Linked Insurance Scheme or Group Insurance

Scheme
An employee can choose any one of the scheme. This is a scheme to insure the
employee. As per the scheme while in service, an employee’s nominee can
claim the insurance amount through the employer. The insurance premium is
borne by the employers.
The company has both permanent and temporary workers. Fifty employees are
working on temporary basis. The wages paid to temporary workers is Rs. 60 per
day and the wages paid to the permanent worker is Rs. 80 per day.

3.6.3 Employee State Insurance Scheme

“Employees State Insurance Scheme”, as provident fund this is also a scheme

introduced for the welfare of the employees. Under this scheme, the employee
and his family members may avail medical treatments. Due to sickness an
employee may happen to lose wages, under these circumstances the employee
state insurance scheme helps labourers by compensating a portion of his wages
cost. Employee State Insurance schism
Have many dispensaries and hospitals for treating in patients and out patients.

3.6.4 Benefits
Following are the benefits under Employee State Insurance Scheme.
 Medical Treatments
 Hospitalization Facilities
 Compensation of Wages
 Maternity Benefits
 Funeral Benefits
 Pension and Accidental Benefits

3.6.5 Remittances

The employer should remit the contribution with in 21 days from the last
working day of each and every month. For supervision and inspection the
Employee State Insurance inspector visits the mill periodically.

3.6.6 Number of Staffs and Workers

The company has around twenty-three staff members and three hundred
labours. As the company runs three shifts, each shift company employ around
100 labours. Company recruits both male and female labours. The company
has 154 male labours and the remaining labour is female labours. Mostly day
shifts are allotted to the female labourers.

CHAPTER- VI
CONCLUSION

In my own experience, I have learnt lot of subject knowledge in our concern. I

gathered practical knowledge from various departments, in our companies, the
staff members and employers they had a good relationship with me in training. I
understood a lot how to maintenance the records. I came to know the significant
growth in recent years as continuously upgraded the process and quality of
product from the various departments. Hence my point of view the Selva
Ganapathy textile over all performance is highly satisfied for my training.