In-plant training at MIDAS Milege,Kottayam

CHAPTERR-I INTRODUCTION
The internship tainting is basically a practical work. A student is required to go in an industry and interact with the personnel. In other words he gets on the hand practical experience and these on the hand practical experience and information compiled together and represented in an orderly way makes out what is known as project report. The projects are helps the student to know the real situation of the company and during this process he comes across the various functions that the company performs and also their overall activities. This study is generally means to develop with in his inner self practically and theoretically. It is like a practical training which will make prepared for future jobs as managers. An organization study is a systematic study about the various managerial practices of the organization. An organization formed for some special objectives. The companies trying to achieve their goals. The organization study gives a clear idea about how organization works. It helps the students to get a practical knowledge about the functional aspects of the major department in the organization. Every organization has different departments. Each and every activity delegated to the concerned departments. The structure of the organization plays an important role in its progress. This study about the basic structure and functional details of the organization helps the managers. Organization study is an important for management students. Organization structure designed to achieve basic objective of a firm. The objective may be increase production, sales, goodwill and profit. The organization consists of relevant managerial and working sstaff to achieve these objectives. There are so many factors lead a company to success. Hence through this organization study I wish to explore the key factors that make MIDAS millage is number one manufactures. There are so many factors that are directly or indirectly related to the success of the business. Through this organization study I wish to know how systematically all departments working in the organization.

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CHAPTER-II INDUSTRY PROFILE

Tyres and tubes, the strategic rubber products and basic supplements to the automotive vehicles are of utmost importance to the countrys economy. The tyre industry sector is providing direct employment to over 40,000 people and indirect employment to lakhs of people. This industry sector is now being considered as a core industry sector. The manufacturing of automobile tyres as an essential ancillary for the development of automobile sector came into being in India during the 1930swhen the Dunlop India Ltd., the first tyre manufacturing transnational company started its operation in 1935 at Sahaganj in West Bengal. During the early period the overseas tyre manufacturing companies were having major equity participation in the Indian manufacturing companies. After 1970s there was a change in the policy of Government and it decided not to sanction any foreign equity. The setting up of joint sector projects with multiple foreign collaboration was considered feasible. At present 11 large companies with 15 factories and 9 medium- scale companies scattered all over India are manufacturing tyres and tubes for automotive vehicles including aerotyres and tyres for defence services. As estimated, their total production during 1987 was 128 lakhs tyres against the total installed capacity of 179. 44 lakhs tyres. The interesting feature of the tyre industry in India is that starting from its inception to the present day; its progress has been influenced by repeated import of technical collaborations. There is an urgent need to build up indigenous capabilities for tyre technology including the tyre machinery. The industry has high entry barriers because of its capital intensive nature and low operating margins. With demand increasing at a steady pace, the industry is expected to 2
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go through a consolidation phase. The industry is dominated by four players viz MRF, Apollo Tyres, JK Industries and Ceat and enjoys more than 70% of the total market share. The fortunes of the industry are linked to the trend in the domestic auto industry, retreading, trend in road transportation and spending on road infrastructure. The companies have lined up further expansion plans to meet increasing demand.

JK TYRES
JK industry ranks second in the Indian tyre industry with 21% market share enjoying leadership in the truck and bus tyre segment with 25% market share. It strong brand JK tyre and wide distribution network gives it an edge peers. It focus on R&D effort to widen product range, increasing capacities and offer radials for the entire range of 4 wheelers to service a wide customer base has further strengthened its presence in the industry. Given JK leadership in truck and bus tyres, storing presence in 4 wheelers radials and focus on increasing exports. A JK tyre is the first tyre company in India to receive ISO 14001 in recognition of its environmental management system. APOLLO TYRES APOLLO TYRES LIMITED is the one of the fastest growing tyre company in India. APOLLO tyres controlled 21% of tyre market. It is the first tyre company to get the prestigious ISO 9001 Certification for tyre manufacturing. CEAT TYRES CEAT tyres primarily entered to the replacement market. Due to strong growth in the sector, the share of the replacement market in the local revenue of the company has fallen. However the production growth in the automobile sector over the past few years should boost to the replacement market in the coming years.

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MRF TYRES MRF occupies major share in the tyre industry. MRF has benefited from better productivity and operational efficiency. TWO WHEELER TYRES In a bid to augment volumes CEAT, the RPG group controlled the tyre company has decided to focus on two wheeler tyres, which is among a fastest growing tyre segment, by striking supply alliances with original equipment manufacturers, Hero Honda, TVS Motors and Kinetic Honda Motors. CEAT has initiated talks with Hondas wholly owned subsidiary Honda Motorcycle and scooters to supply scooter tyres. MRF, the countrys largest tyre manufactures has significant presence in the two wheeler segment. CEAT, which has no long focused on radial and truck tyres, will source motorcycle tyres from its captive suppliers, which have Manufacturing facilities at Baroda and Hyderabad. Besides, Kerala based RADO tyres, which is owned by the RPG group, also manufactures two wheeler tyres for CEAT. Two wheeler tyres have been among the fastest growing tyre segments, although there has been a bit of reversal in the current fiscal. The RPG group, which has been a major player in the two wheeler, segments its joint venture South Asia Tyres, lost its grip on the product category after CEAT sold of its stake in the joint venture to GOOD YEAR. The two wheeler segment accounts for around 20 lakhs units per month, out of which almost half comprises of sales to original equipment manufacturers while the balance to the replacement market. Due to demand in motorcycle the twowheeler tyre category, which was among fastest growing last year, has been facing a bit of a reversal with growth during the current fiscal period. 4
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The origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber Limited set up the first tyre company in West Bengal. MRF followed suit in 1946. Since then, the Indian tyre industry has grown rapidly. Transportation industry and tyre industry go hand in hand as the two are interdependent. Transportation industry has experienced 10% growth rate year with an absolute level of 870 billion ton freight. With an extensive road network of 3.2 million km, road accounts for over 85% of all freight movement in India. TYRES BY TYPE The Indian tyre industry produces the complete range of tyres required by the Indian automotive industry, except for aero tyres and some specialized tyres. Domestic manufactures produce tyres for trucks, buses, passenger cars, jeeps, light trucks, tractors (front, rear and trailer), animal drawn vehicles, scooters, motorcycles, mopeds, bicycles and off- the road vehicles and special defence vehicles. The scenario in India stands in sharp contrast to that in the world tyre market, where car tyres (including light trucks) have the major share (88%) by volume followed by truck tyres (12%). In india, however, passenger car tyres a mere 17% share of the overall tyre market ( as of FY2003).

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TYRES AND BUS TYRES The truck and bus tyre segment accounted for 19% of tyres produced in India in FY2003. Every truck/ bus manufactured generates a demand for seven tyres (six regular and one spare) as against three in the case of two wheelers and five for passenger cars. In addition, the price of a truck tyre is significantly higher than that of a passenger car tyre (roughly 10 times) or a motorcycle tyre. Thus the demand multiple emanating from the commercial vehicle segment is highest in value terms Given the regular use and heavy wear and tear of truck and bus tyres, the demand from the relplacement market in this segment worked out to 68% of the total demand for truck and bus tyres in FY2003; the OEM demand accounted for around 9% the same year. With the Indian manufactures of cross- ply tyres focusing on the export market, this segment accounts for around 22% of the demand for truck and bus tyres 6
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PASSENGER CAR TYRES The passenger car tyre segment accounted for 17% of all tyres produced in India in FY2003. With passenger car production witnessing a growth of 12% in FY 2003 over the previous year, OEM demand accounted for about 33% of the total sales that year. The replacement market accounted for around 63% of the total sales of passenger car tyres in FY2003. Exports accounted for 4% of the total passenger car tyre demand in FY2003. With the stock of cars increasing, replacement demand is likely to continue. MOTORCYCLE TYRES Motorcycles accounted for 76% of two- wheelers sold in the domestic market in FY2003. Motorcycle tyres constitute the largest segment of the domestic tyre industry (29% of total tyre demand in FY2003). The replacement market accounted for around 49.8% of the total motorcycle tyres sold in FY2003, while OEM demand accounted for around 50%. SCOTER TYRES Scooters were the dominant segment in the Indian two- wheeler industry till FY1998, accounting for around 42% of domestic two wheeler sales. However, the introduction of new motorcycle models has seen the share of scooters declining to 19% of deomestic two- wheeler sales in FY2003. The OEM segment accounted for around 34% of the total sales in the scooter tyre segment in FY 2003, with the rest being accounted for by the replacement market.

Trends in Production, Consumption, Price & Capacity Utilization

The total tyre produced int he country were 51.58 million units in FY 2003- a 19% growth rate over FY2002. Currently, the Size of the Indian tyre industry is estimated at Rs. 128 billion (0.5% of Indian GDP), as of FY 2003. The total installed capacity utilization is around 85%. The Capacity utilization improved in FY2003 following improved demand from the automotive segment (75% in FY 2001). Additionally, in 7
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FY2003, the price realization of tyre manufactures also registerd an increase by8%, as against a 0.6% increase in FY2002. OUTLOOK OF INDIAN TYRE INDUSTRY The level of economic activity, performance of domestic automotive industry, and the faring of the transport sector directly influence the performance of the tyre industry in India. With the replacemtn segment dominating the overall tyre demand in India, the industry remains inherently vulnerable to econimic cycles. While radialisation has become the norm in the passenger car segment, in the bus and truck tyre segment, its acceptance is still limited. Bus and truck radialisation could emerge in the long term as the quality of roads improves and the restrictions on overloading are better enforced. The practice of re-reading, which is gaining increasing acceptance, couldpose a challenge to replacement demand in the Medium term. The ability of re-reading sector to capture potential replacement demand would depend on the awareness among customers (of the benefits of retreading) and also the quality of retreading done. Given the low levels of penetration of two- wheelers and passenger cars in the country, OEM demand is likely to increase, which in turn would push up replacement demand with a lag. In the domestic market, tyre manufactures are expected to increasingly focus on expanding their dealership networks & explore possibilities of tie- ups among themselves to penetrate the growing customer base. Thy are also likely to pursue innovative measures (such as road shows) to improve customer awareness. The consolidation of the Indian tyre industry is likely to continue in the coming years through mergers among existing players. The industry is likely to expand through a combination or organic and inorganic growth. While organic growth would come from raising efficincy levels, inorganic growth woyld be achieved through alliances and M&As.

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RANKING OF INDIAN TYRE COMPANIES ON THE BASIS OF PRODUCTIN 1. MRF Tyres Limited 2. Apollo Tyres Limited 3. JK Tyres 4. Ceat Tyres Limited 5. Modi Rubber Tyres Limited 6. Birla Tyres Limited 7. Good Year India Limited 8. Vikrant Tyres Limited

In its native Central America and South America, rubber has been collected for a long time. The Mesoamerican civilizations used rubber mostly from Castillo elastica. The Ancient Mesoamericans had a ball game using rubber balls (see: Mesoamerican ballgame), and a few Pre-Columbian rubber balls have been found (always in sites that were flooded under fresh water), the earliest dating to about 1600 BC. According to Bernal Daz del Castillo, the Spanish Conquistadores were so astounded by the vigorous bouncing of the rubber balls of the Aztecs that they wondered if the balls were enchanted by evil spirits. The Maya also made a type of temporary rubber shoe by dipping their feet into a latex mixture. Rubber was used in various other contexts, such as strips to hold stone and metal tools to wooden handles, and padding for the tool handles. While the ancient Mesoamericans did not have vulcanization, they developed organic methods of processing the rubber with similar results, mixing the raw latex with various saps and juices of other vines, particularly Ipomoea alba, a species of Morning glory. In Brazil the indigenous population understood the use of rubber to make water-resistant cloth. A story says that the first European to return to Portugal from Brazil with samples of such water-

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repellent rubberized cloth so shocked people that he was brought to court on the charge of witchcraft.

Elasticity
In most elastic materials, such as [metals] used in, the elastic behavior is caused by distortions. When force is applied, bond lengths deviate from the (minimum energy) equilibrium and strain energy is stored [electrostatic potential |electrostatic ally]. Rubber is often assumed to behave in the same way, but it turns out this is a poor description. Rubber is a curious material because, unlike metals, strain energy is stored [thermal energy thermally], as well as electro statically. In its relaxed state rubber consists of long, coiled-up polymer chains that are [Disulfide bond interlinked] at a few points. Between a pair of links each monomer can rotate freely about its neighbor. This gives each section of chain leeway to assume a large number of geometries, like a very loose rope attached to a pair of fixed points. At [room temperature] rubber stores enough [kinetic energy] so that each section of chain oscillates chaotically, like the above piece of rope being shaken violently.

Current sources of rubber

Close to 21 million tons of rubber were produced in 2005 of which around 42% was natural. Today Asia is the main source of natural rubber, accounting for around 94% of output in 2005. The three largest producing countries (Indonesia, Malaysia and Thailand) together account for around 72% of all natural rubber production. Early experiments in the development of synthetic rubber led to the invention of Silly Putty. Natural rubber is often vulcanized, a process by which the rubber is heated and sulfur, peroxide or biphenyl are added to improve resilience and elasticity, and to prevent it from perishing. Vulcanization greatly improved the durability and utility of rubber from the 1830s on. The successful development of vulcanization is most closely associated with Charles Goodyear. Carbon black is often used as an additive to rubber to improve its strength, especially in vehicle tires. 10
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Uses
The use of rubber is widespread, ranging from household to industrial products, entering the production stream at the intermediate stage or as final products. Tires and tubes are the largest consumers of rubber, accounting for around 56% total consumption in 2005. The remaining 44% are taken up by the General Rubber Goods (GRG) sector, which includes all products except tires and tubes. Other significant uses of rubber are door and window profiles, hoses, belts, matting, flooring and dampeners (anti-vibration mounts) for the automotive industry in what is known as the "under the bonnet" products. Gloves (medical, household and industrial) are also large consumers of rubber and toy balloons, although the type of rubber used is that of the concentrated latex. Significant tonnage of rubber is used as adhesives in many manufacturing industries and products, although the two most noticeable are the paper and the carpet industry. Rubber is also commonly used to make rubber bands and pencil erasers. Retread, also known as "recap," is a manufacturing process designed to extend the useful lifespan of a worn tyre. The word retread can also refer to a tire which has been taken through this process. Retreading starts with a safety inspection of the tire. The old tread is then buffed away, and a new rubber tread is applied to the bare "casing" using specialized machinery. Retreads are significantly cheaper than new tyres. As a result, they are widely used in largescale operations such as trucking, bussing and commercial aviation. They are also the most environmentally friendly way of recycling used tires - in some applications, a tire can be retreaded up to 10 times. During World War II, the term "retread" was used to describe Army officers who had left the service before the war began for any reason (failure of promotion, medical disqualification, reduction in force, retirement, etc.), but who had been recalled to active duty in the Army Reserve for the duration of the war. The aptness of the term is apparent when one considers the industrial application of the term to tyres. Rubber mulch generally consists of either waste tire buffings or nuggets of rubber from tires that are ground up whole, after having their steel bands removed. Almost any tire can be used to make rubber mulch, including passenger vehicle tires and large truck and trailer tires. Buffings 11
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are produced from recycled truck tire tread when the remainder of the worn-down tread is removed from the tire prior to retreading. Buffings are generally thin slivers of rubber. Nuggets range in size from 10 mm to 32 mm, or 3/8 inch to 1 1/4 inch. Rubber mulch provides several advantages over plant material based mulches. For landscaping and gardening purposes, both nuggets and buffings insulate soil from heat allowing a 2 or 3 degrees F higher soil temperature difference over wood mulches. Rubber mulch is beneficial for soil moisture as rubber is non-porous and does not absorb water on its way through to the soil. It also reduces fungus growth and plant growth, and becomes a weed barrier as weed seeds dehydrate in the mulch before reaching the soil. Neither nuggets nor buffings provide any humus to compacted soil types. Another advantage over plant-material mulches is its elasticity, which gives it a springy quality when used in a fairly thick layer. This makes it a natural choice for playgrounds, where the extra springiness provides additional safety for children when they fall off of playground equipment. Tests have shown rubber mulch is superior in breaking falls to traditional bark mulches. It can be 97% wire free for landscape use and 99.9% wire free for playgrounds. Rubber mulch is also becoming a product of choice used in horse arenas for footing material when mixed with sand. It can be found in nugget or shredded style.
y y

Some recycled varieties may leach chemicals(some toxic) which are harmful to plants Rubber mulch, like some organic mulches, is a hazard if ignited. However, rubber mulch is more difficult to extinguish. Although rubber mulch is generally safe, recycled tire rubber leachates do contain certain

minerals and compounds which may cause concern in high concentrations. Recycled tire mulch can contain trace amounts of various minerals from the tire manufacturing process and other chemicals that may have been picked up during the tire's service life Tyre retreading plants does remolding of worn tyres into completely new tyre by way of providing procured rubber by special process on tyre retreading plant and machinery. Ordinary person can not make out the difference between really new tyre and retreaded tyre. So retreaded tyre is as good as new tyre. However, its life is not as equivalent of the new tyre. But the expense of retreading is only 30 to 40% cost of the new tyre. So truck owners and tractor owners will prefer to retread the tyres instead of purchasing new ones because using retreaded tyres becomes economical. 12
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With advances in retread technology, especially non-destructive testing equipment and computer controlled machinery now being routinely used in most retread plants, the retread process has become highly sophisticated and is responsible for producing a final product that can often provide more miles than the original new tire, and with an adjustment rate as low or even lower than comparable new tires. Tyre retreading industry has always seen an increasing trend for the last few years mainly because of high cost of new tyres. Due to the development in infrastructure like roads and bridges, the number of transport vehicle has increased leading to further scope for retreading industry.

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CHAPTER- III COMPANY PROFILE

MIDAS is the name of an emperor who has known for his unique ability to transform iron to fold by a simple touch. The literary meaning of MIDAS is the ability to reach prosperity. Sri George Varughese who is a creative thinker and industrialist who recognized the importance of retreating well before the retreating sector become popular in common, founded the present MIDAS group Mr. George Varughese presently heads the MIDAS group. The MIDAS group was started, as a small tread rubber unit in Ettumanoor industrial Estate near Kottayam District.

Mr. George Varughese started this small unit in 1969 with an investment of Rs.65,000 with his dynamic leadership and innovative ideas he turned this small unit into a leader in this field. In 1985 July 31st MIDAS PRECURED PRIVATE LIMITED COMPANY was established as a small scale unit at Ettumanoor. It was mainly engaged in manufacturing of Precured Tread Rubber. Midas is India's most popular brand of Tyre Retreading Materials with more than

1500 tons of sales per month. Besides India, Midas currently has satisfied customers all over the world from South America to Africa and from Europe to Australia. We are constantly expanding our dealer network to enable our users to have easier access and better service.

From the beginning Midas has tried to grow through innovation and R&D. Their compounds are constantly being improved with the latest technology to provide better mileage and a trouble free performance. Midas factories and office are located around Kottayam town in Kerala, which is known as the Natural Rubber capital of India. The company looks forward to helping customers meet their particular needs, whether it is a faster delivery or a special compound.

The introduction of precured treads in India made MIDAS in the fare front with the availability of best raw material ,that is the natural rubber close at hand MIDAS produces world class rubber products such as Precured Treads, camel Back Tread, Vulcanizing cement cushion Gum, curing Bags, curing Envelopes, and Bonding Gum etc. The high quality control efficiently maintained, at every stage that is from procurements of raw materials to the production of

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finished goods is making MIDAS production much above the lines of normal standards.

Now the company has got 36 tread manufacturing unit, 26 in Kerala 8 in Pondicherry and 2 in Madras and the groups Turnover is100 Crores. Quality wise and revenue wise it is the No.1 Company in the field. Indias largest Rubber compounding, unit belongs to the MIDAS Group, known as MIDAS RUBBER PRIVATE LTD. It is the Midas, which is supplying rubber compounds to many of Indias major Type companies like Apollo Tyres, Ceat, J.K. Tyres and Vikrant as per their needs.

Midass marketing and management services co-ordinates the groups marketing and management functions. The group has got an excellent marketing network, which markets the products all over India and in the international market. The major revenue for the group is from the scale of Precured Trade rubber and its market is entirely outside Kerala.

Objectives of the company

 To carry on business dealers, agents, importers, exporters and merchants of all kinds of rubber bushes, molding sheets, vulcanizing solutions, flap channels, industrial lining Vbelts, transmission belts, tubes, tyre and other compounds, articles and appliance made with and from and involving the use of natural and synthetic rubber.  To carry on business of mixing, masticating and processing of rubber, natural and synthetic rubber.  To lease, left on wire and neat out machines, accessories and fixtures, for processing mixing and masticating of natural and synthetic rubber goods and make available such rubbers of skilled and unskilled workers. In short, the objectives are: Quality Profit Maximization Cost minimization More employment Time delivery 15
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Consistency in as sales service

Service of the company

Uncompromising quality is the main features of MIDAS. It is with this, the company maintains its reputation. Besides, the latest technology, MIDAS quality controls systems that ensure quality at every stage of production.

Management
Mr. George Varughese heads the group and his wife Mrs. Mariamma Varughese handle the management of the group look after the companys day - to day operations. Mr. George Varughese takes decisions only on policy matter. The directors of the company are Mr. John K. Abraham, Mr. John Abraham and Mr. Koshy Varughese. They are well experienced is rubber based industries

Wages and salary of Midas

The workers are given daily wages. The wages includes basic payment and Dearness Allowance. DA is given as per the norms of the statistic department, Govt. of Kerala. Time rate system is applicable to office, staff, representatives and managers. Monthly payment is followed in all cases. Deductions for PF ESI Employee security Professional Tax, Advances, LIC,

contributions are provident fund done from gross salary.

Other Benefits
Medical allowance Overtime Allowance Loans Night Bata Production Incentive

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Insurance Provident Fund Leave with wage Medical Aid

MIADS aims to price its product competitively with hi-end major like Elgi, MRF and Indag. The Indian market is mainly categorized between high priced, middle priced and low priced. MIDAS is a major player in middle priced segment. Their product is not highly priced as Elgi, Indag wither low as local manufactures their quality is comparable to it. MIDAS has not adopted a franchisee system to market its product. Like major such as Elgi, MRF, Indago but prefers to sell its product in the open market directly through Group Company MIDAS Marketing and Management Services and a network of dealers. MIDAS has 30 dealers in India with kerala having only one dealer Gujarat 5 Maharashtra 6, Punjab/Haryana and West Bengal. More dealers do not mean that they are selling more in their respective states. Dealer of retreading, alone sells about 100-125 tones per month, which is about 20% of the Kerala market. In the western Indian states of Maharastra and Gujarat, MIDAS has maximum dealers due to the size of the economic in those states. Maharashtra is the MIDASS biggest market overall with TamilNadu, Andhra Pradesh Kerala and Karnataka are the good market in the south.

The company has definite plan to enter the international market in a big way. The company is targeting an export of about 1000 tones in the next five years. The immediate, plans are to double the exports every year to achieve, a target of at least 300 tons in the next couple of years. At present, MIDAS has made a small export to countries in Europe. In the domestic market MIDAS has until now focused mainly on product quality rather than on marketing and distribution. The companys immediate plans are to increase its dealer network particularly in states, which are covered as yet. Even where it is not selling through dealer network, MIDAS is selling directly in the open market. So customer can get its products everywhere.

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PRODUCT PROFILE

Rubber Natural, Synthetic, and reclaim constitute the major and the most important raw material of the vital rubber industry and it also holds a strategic position in the countrys economy. Rubber products are exclusively made out of natural or synthetic rubber. Tyres and tyre products are made out of rubber a they are manufactured by the molding method. Treads is the wearing surface of the type, which comes in contact with the road surface. It is applied in the raw state as an extruded slab of rubber compound. In cross section it is substantial rectangular across the center tapering down into very fine edges. As the tyre moves on the road, the tread portion wears off gradually. The process of removing the old worn out tread and replacing it with a tread surface is called rethreading. Tread rubber is the material used to replace the wearing surface on tyres. The old useless tyre can be made to run almost equal mileage as a new tyre by treading within the cost not exceeding 1/3rd of that of a new tyre. Procured retreading is the method of retreading in which already cured tread rubber having tread patterns is adhered to the already buffed tyre casing by means of a vulcanisable cushion gum Here the advantages of procured tread rubber come. Retreading as an industry has become very important in the nations effort reduce the energy consumptions. In 1975, approximately 10,59,00,000 gallons of crude oil were saved by the rethreading industry of tyres instead of the production and the usage of new tyres. Redial tyre can retread through the cold cure process, because the temperature of this process is below 100 degree Celsius, whereas according to hot process nylon, casing of the radial tyre would buckle inside at the higher temperature. If procured treads are used for retreading no tread moulds are needed as opposed to the hot process where the tyres, which are fitted into the tread alone, can be rethreaded. If procured treads are used in retreading, the over curing problem of the tyre body can be avoided. Because the already cured tread is applied to the buffed surface by means of a cushion gum. But in the hot process, the tyre again has undergone curing with tread. This will cause over curing problem to the tyre body and the life of the body will be reduced. Considering

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all the above factors the use of procured Treads is economical.

Other Benefits
 More mileage  More number of retreads  Less possibility of punctures  Less down time

Product range of the company

 Precured Trades Available in a large number of designs and size to suit every road and use. Size from 84mm to 320mm width available for all types of vehicle.  Black Vulcanising Solution Available for 99 degree Celsius, 125 degree Celsius 150 degree Celsius operations. Compatible with both procured an hot process.  Camel Back Increased scorch safety to maximize shelf life. Different compounds available for

different uses including (Truck, Tractor) Available in customer specified sizes.

 Bonding Gum Available for 99 degree Celsius, 125 degree Celsius and 150 degree Celsius operations. 19
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Our Gum is made 100% natural rubber to increase tack. Available in customer specified size also. Different types of Gum are available for both procured and hot process. Can be used to fail holes and repair injured parts of casing.

Tyre Flaps

Designed for retreading applications to be heart resistant and durable.

Curing Bags

Butyl curing bags specially designed to designed to maximize cures.

Rope Rubber

To be used in rubber extruder guns to repair rasping area. Provides excellent process safety and track.

Curing Envelops

Heat resistance: for ease of use and long life.

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ORGANIZATION STRUCTURE

Maning Director

General Manager

Production Manager

Marketing Manager

Personnel Manager

Finance Manager

Technicians

Assistant Manager

Assistant Manager

Accountant s

Supervisor

Area sales manager

Supervisors

Treasurer s

Workers

Sales executive s

Workers

Clerks

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VISION AND MISSION Vision of the company

The Vision of the company is to increase its market share in the near future. The company concentrates mole on its quality aspects. The company believes the quality and

consistency in sales and service can help to achieve the vision.

Mission of the company

The company looks forward, the newly builted, highways around the world. For example newly builted Bombay - Pune Highway. The concept of retreading is been changed in the era. Instead of hardness elements like accident redction (slip tendency) Mileage, riding comfort, rolling resistance, comes into picture. The mission includes of the following  To remain, a leading producer of retreading materials in India  To continuously grow in business and become a significant player in world market.  To maximize return on investment  To achieve international level of excellence in technology and quality

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IV.1 PRODUCTION DEPARTMENT

Production management is consumed with the decision making regarding the production of goods and services of a minimum cost according to the demand of the customers through the management process of planning organizing and controlling. Production is the transformation of inputs into outputs. Production means creation of

utilities and covers all the activities of procurement, allocation and utilization of resources such as labour, energy, materials, equipment, machinery etc. Utilities are goods and services which have want satisfying power. Production is the process by which goods and services are created. activities. Production is the heart of all business

General

Natural and Synthetic rubber is most important raw material of the vital rubber industry and it also holds a strategic position in the countrys economy. Rubber products are exclusively made out of natural or synthetic rubber.

Tyres and tyre products are made out of rubber a they are manufactured by the molding method.

Tread

Treads is the wearing surface of the type, which comes in contact with the road surface. It is applied in the raw state as an extruded slab of rubber compound. In cross section it is substantial rectangular across the center tapering down into very fine edges.

Retreading
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As the tyre moves on the road, the tread portion wears off gradually. The process of removing the old worn out tread and replacing it with a tread surface is called rethreading. Tread rubber is the material used to replace the wearing surface on tyres. The old useless tyre can be made to run almost equal mileage as a new tyre by treading within the cost not exceeding 1/3rd of that of a new tyre.

Procured Retreading

Procured retreading is the method of retreading in which already cured tread rubber having tread patterns is adhered to the already buffed tyre casing by means of a vulcanisable cushion gum Here the advantages of procured tread rubber come.

PRODUCTION PROCESS

Store department provide raw materials through purchase department as per production schedule. The material required for productions taken from the store department based on a material requisition note' receipting the raw material they make an incoming inspection, in order to check that whether the materials have the quality that the company is required. If the required quality is not for the row material, they should not accept the materials and sending back it to the supplier. And if the row materials possess the quality that the company is required, the materials should be accepted The manufacturing process include the following steps  Mixing of master batch  Mixing of final batch  Extrusion  Curing  Sandering  Inspection  Bundling 24
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 Despatch

Mixing of master batch

Manufacturing of pre cured tread, bonding gum and conventional tread is begins with this process. Here is the raw materials are converted in to compound stage. Master hatching is done in a machine called inter mix.

Mixing of final batch

Final batch is made out from master batch mixing a measured quantity of aged master batch measured quantity of final chemicals. This can be done either in inter mix or in an open mills. The mix code of final compound, number of batches mixed and the corresponding quantities are recorded in the production log.

Extrusion

Extrusion is the process that the aged and tested ok final batch compound is converted in to different size and different shapes as per curing requirement and the color-coding is also done during the extrusion. It is not allowed to attach any extra piece with the strip for adjusting the weight.

Curing
Curing is the process to make the compound as final tread, by the application of pressure and temperature for pre decided time. Thorough pressing carried out with the mould, which has the decided design. The extruder material goes for curing then the product will come out with the pre decided design and weight. If there is any change occurred in the pressure, temperature, and time. The material will be spoiled and no way it can be used. This process needs ultimate care. 25
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Sandering

The cured treads bottom will be shiny and -lazy the bonding of the tread with this is not possible. To overcome this sandering is carried out. In sandering bottom surface of the tread is roughening for the effective and efficient bonding with old tyre.

Inspection

Every batch of the finished tread rubber is inspected by the quality control personals. They inspect and verify the quality of the product with the standard and gives certificates for sale, if the tread is okay.

Bundling

The certified tread rubber is bundled according to the needs and wants.

Despatch

According to the order place by the marketing department, the product is dispatched to the specified center or branch.

Manufacturing of bonding gum

Raw rubber and chemicals are mixed in fixed proportions are subjected to inter mix process. The compound is then cured for about eight hours and mixed with sulphur and accelerator, 26
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before passing through a three roll calendaring machine. This is then packed along with semi imposed polythene sheets.

Manufacturing of Black Vulcanizing Cement (BVC)

The procedure for manufacturing of BVC is the wine as that of BG up to final batch mixing. The final batch compound after cooling, testing ageing is used for gum mixing. Churn mixing is processed by which BVC is manufactured. The specialized ratio of FB compound and naphtha are mixed for specified time mixer. BVC is liquid from and is filled BVC drums of 25 liters capacity or as per the party specification as per the quality testing after ensuring the quantity capacity of the container is lightened sealed. The manufacturing date, quantity, temperature, batch number etc. are recoded on the drum. After receding the relevant data's in the finished goods register materials is transferred to finished goods store.

Manufacturing of conventional tread

The manufacturing of conventional tread is the same procedure of PCT up to mixing the final mixing. The final mixing of conventional tread compound is normally done only in open mills. The aged, tested. ok final batch compound is extruded and as per the size with which the customer required. The color coding is done during the extrusion. A sticker showing the brand name should be pasted in the center of the tread. The cushion gum of pasting the CT is manufacturing in the same procedure of bonding gum the previously calendared cushion gum having one inch width. Ore than the width of the tread extruded is pasted in the flat side of the tread after cooling the tread. After pasting the gum, the length and weight of the tread is to be checked. If the weight, length, and the thickness of the tread is matching with the customer requirement, the tread is send to packing area. The checked tread is then wind in to a paper core to avoid taming and inserted in a polythene bag. Then it is put in to a HDPE bag and stitch it with a stitching machine. One tag will be placed in side the bag which showing the size, date of manufacturing, weight and the brand name.

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Hierarchy of production department

Manager

Assistant Manager

Officers

Supervisor

Workers

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Flow chart of manufacturing

Start

Receipt of Raw material

Final batch mixing

Incoming inspection

In process mixing

Acceptance and Storage

Extrusion

Issue to Production Curing

Mastication Required or not

Inspection

Sandering Issue to Production Final batching Bundling

Stores

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Advantages
Retreading as an industry has become very important in the nations effort reduce the energy consumptions. In 1975, approximately 10,59,00,000 gallons of crude oil were saved by the rethreading industry of tyres instead of the production and the usage of new tyres. Redial tyre can retread through the cold cure process, because the temperature of this process is below 100 degree Celsius, whereas according to hot process nylon, casing of the radial tyre would buckle inside at the higher temperature. If procured treads are used for retreading no tread moulds are needed as opposed to the hot process where the tyres, which are fitted into the tread alone, can be rethreaded. If procured treads are used in retreading, the over curing problem of the tyre body can be avoided. Because the already cured tread is applied to the buffed surface by means of a cushion gum. But in the hot process, the tyre again has undergone curing with tread. This will cause over curing problem to the tyre body and the life of the body will be reduced. Considering all the above factors the use of procured Treads is economical.

Other Benefits
 More mileage  More number of retreads  Less possibility of punctures  Less down time

PRODUCT RANGE OF THE COMPANY Procured Trades

Available in a large number of designs and size to suit every road and use. Size from 84mm to 320mm width available for all types of vehicle.

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Black Vulcanising Solution

Available for 99 degree Celsius, 125 degree Celsius 150 degree Celsius operations. Compatible with both procured an hot process.

Camel Back
Increased scorch safety to maximize shelf life. Different compounds available for

different uses including (Truck, Tractor) Available in customer specified sizes.

Bonding Gum
Available for 99 degree Celsius, 125 degree Celsius and 150 degree Celsius operations. Our Gum is made 100% natural rubber to increase tack. Available in customer specified size also. Different types of Gum are available for both procured and hot process. Can be used to fail holes and repair injured parts of casing.

Tyre Flaps

Designed for retreading applications to be heart resistant and durable.

Curing Bags
Butyl curing bags specially designed to designed to maximize cures.

Rope Rubber

To be used in rubber extruder guns to repair rasping area. Provides excellent process safety and track. 31
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Curing Envelops

Heat resistance: for ease of use and long life.

Research and development

The company has one of the top polymer laboratories in the country, which they use to develop new products and to carry out quality tests on daily production. They are constantly developing new compounds for various uses and for improved mileage and properties. They value the feedback on the product performs on the road to help improve it further. The company conducts road test program to ensure that laboratory results convert to real world benefits for the customers. All the materials are thoroughly quality tested to ensure consistency. Every 60 Kg of mixed compound is tested for correct dispersion and to ensure they meet their standards, before further processing takes place. All raw materials are tested before using in the production. They hope that with these high standards, they will be able to provide the customer with a great product every time.

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IV. 2 QUALITY CONTROL DEPARTMENT

Quality control has impotent role in the modern business. The fault in the quality will decrease in the overall decrease in the market the efficient management must be given as significant important to the quality control. The Midas also have an effective quality control department. The function of the quality control department begins with the receipt of the raw material. The payment for the purchase call make only after the certification obtained from the quality control department. The specific gravity of the raw materials is compared with the standards. In the master batch mixing stage the resultant compound is also checked by quality control personals. After the final batch mixing the quality control checks the brittleness, hardness, etc of the compound. The quality control processes not ends with final batch mixing. In every stage of the production, like extrusion, curing, sandering, etc. samples are checked by the quality control department.

Structure of Quality Control Department

Assistant manager

Senior officer

Technical officer

Technical assistance

Important tests conducted by the quality control department

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Abrussion tester
The imagination of the road conditions of the country and calculate the amount of friction has to face by the tread. Before this test is carried out the sample piece of the tread is weighed with an electronic balance and the sample fixed in the abrussion tester. The tester for a fixed time, after that the is again weighed an electronic balance. The volume loss, which takes on the tread, is mathematically measured by subtracting the present weight from the initial. Then the life of the tread is measured by the mathematical formula

Tensile tester

By using the tensile tester the tensile strength of the tread is calculated. The sample piece of the tread is placed on the machine and fixed pressure applied on it. The tensile strength is calculated by the formula Force/Area.

Durometer

Durometer is an instrument using for checking the hardness of the tread. By applying durometer against the tread the hardness of the tread is directly measured. With the use of the relationship between brittleness and hardness, the calculation of the brittleness can be made.

Quality control department policy

y y

To keep level in the manufacturing below 4%. To reduce the defect resulting in repair of cured treads by 10% every month.

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IV.3 PURCHASE DEPARTMENT

One of the activities by the management for the cost control is the effective purchase of the materials in proper time, proper quantity. The efficient working capital management also needs the effective purchase. Midas mileage establishes a purchase department for the abovementioned objectives.

Purchasing procedure
The purchase procedures followed by the departments are; a. Purchase requirement b. Dealer/supplier selection

c. Dealers quotation d. Placing the order e. Receipt of order f. Certificate from quality control g. Payment

 Purchase requirement
It is prepared by the appropriate department, which needs materials for its usage.

 Dealers/supplier selection
Purchase department makes detailed study about the suppliers and their benefit.

 Dealers quotation
The department accepts quotations from the prospected dealers. 35
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 Placing the order

After making the quotations received, department make order to the dealer/supplier which is more economy to the company

 Receipt of foods
Stores receipt the goods ordered by the purchase department and make physical examination of the goods received

 Certificate from quality control

Quality control department makes examination about the quality of the goods received with the standards. According to, the quality it gives certification about the goods to the purchase department.

 Payment
After the receipt of certificate from quality control, purchasing department make the payment or return of goods which is not certified by the quality control department.

Policy of purchase department

Find out five new suppliers every year Reduce rejection of materials by 5%. Maintain an inventory stock 12 tones.

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IV.4 MARKETING DEPARTMENT Over the years, tread rubber industry is facing intense competition especially from small scale industries. However Midas with its wide network of branches spread over the length and breadth of the country has been able to establish its presence. It is worth nothing that, barring unforeseen circumstances the directors are confident that the company will do much well in the current year. Right now the company is having six branches all over India and they are planning to open new branches and also appoint super distributors (Stockiest), to utilize 100% factory's additional manufacturing capacity. They were started participating in road transport corporation tenders. To attract branded franchisees the company introduced premium and super premium grades. The marketing department at the head office will receive all the orders from customers and branches. Based on the information they, indents will be prepared and forward the same to factory after review by the marketing manager.

Marketing Strategy
The target of the company is to attract the end users and not the intermediaries like workshops and brokers. the marketing department Uses the following types of advertising  Press advertisements  Display boarding  Broachers and catalogs  Advertisements in the industrial journals personal gift to the stable customers  Goodwill gifts (colanders & diaries)  personal contacts with the prospective customers

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Structure of Marketing Department

Board of Directors

Sr. Marketing Manager

Asst. Manager Marketing

Branch in Charges

Marketing Executive

Jr. Officers

Commercial Staff

Brand Promoters

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Promotion

The company does not depend too much on advertising for promoting its products. Advertising tools consist of stickers to be pasted on motor vehicles and roadside billboards. Other promotional tools include sponsorship of minor sports events.

Functions of marketing department

To lay down a procedure for handling enquiries/orders To select dealers on the basis of their capability To sell the products according to market demand, their evaluation based on the performance Conduct market survey to obtain feed back of customers & and prospective customers To evaluate the performance of field staff Registration and assessment of dealers Evaluation of existing dealers

Duties of marketing manager

Setting sales goals to ensuring their fulfillment Attending/responding to customer complaints calls c) Conducting market research Recruiting training of sales personnel Supervising the sales force & monitoring their performance Performance monitoring/ evaluation of customers Evaluation of prospective customers Customer management Obtaining information & tracking of the competitor activities Giving operational assistant to market for the improvement of their performance.

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Records keeping

The marketing department keeps the following records

Customer complaint register Preventive action register Corrective action register Non conforming product

Customer satisfaction

Feed back from the marketing division regarding customer perception of the product Conducting customer satisfaction survey using structured questionnaire, once in three months to know customer rating of their products Data from customer complaints register In this the marketing department collecting data from the customer complaints register and try to solve their complaints

Customer survey

The marketing staff would make regular visits to the customers and send reports to marketing department, on a monthly basis. The marketing manager will review these report and take appropriate decisions and the points that need the director's attention would be brought to their notice Apart from the above a customer survey using structured questionnaire conducted by marketing manager. During his visits to Purchase customers to obtain a clear picture about the prevailing market pulse, rate of acceptance of the products, customer requirements competitors standing ...etc. samples from the market are collect if found necessary, and send for factory for 40
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analysis. The customer satisfaction survey using the structured questionnaire is conducted once in three months.

Policy of marketing department

To increase the number of customers by 5% in every year To increase sales volume by 35% every year To reduce the customer complaints

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IV.5 HUMAN RESOURCE DEPARTMENT

The Human Resources Management (HRM) function includes a variety of activities. Activities also include managing personnel policies. All in all, the HR function is still to a large degree administrative and common to all organization. To varying degrees, the most organizations have formalized selection, evaluation and pay roll processes. Efficient and effective management of human capital pool (HCP) has become an increasingly imperative and complex activity to all the HR professionals. The HR functions consists of tracking innumerable data points on each employee from personal histories, data, skills, capabilities experiences to payroll records. To reduce the manual work load of this administrative activities, organization began to electronically automate, money of these processes by introducing innovative HR processes. employee benefits and compensation, employee records and

Wages and salary of Midas

The workers are given daily wages. The wages includes basic payment and dearness allowance. DA is given as per the norms of the statistic department, Govt. of Kerala. Time rate system is applicable to office, staff, representatives and managers. Monthly payment is followed in all cases. Deductions for PF ESI Employee security Professional Tax, Advances, LIC,

contributions are provident fund done from gross salary.

External training
HR in charge identifies the external training programmes keeping in view of the staff to be trained based on the identified training needs.

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Organizational structure HR

HR Manager

Assistant Manager HR

Junior Officer HR

Workers

Other Benefits

Medical allowance Overtime Allowance Loans Night Bata Production Incentive Insurance Provident Fund Leave with wage Medical Aid

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Recruitment
Midas Mileage recruits their man power through direct interviews, campus recruitments and recommendations of present employees.

Training and development

Training needs are identified in every year in the month of April. The training needs of workers and supervisors are identified by factory manger and the training needs of factory manager and marketing manager is identified by the GM. There are two types of training in the Midas Mileage.

Induction training
All personnel joining in Midas Mileage are given induction training, this include;      Organizational policy and objectives Organizational structure Quality management system Product or service offered Organizational practices

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IV.6 FINANCE DEPARTMENT

Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources. It was a branch of economies till 1890 and as a separate discipline it is of recent origin still it has no unique body of knowledge of its own and draws heavily on economics for its theoretical concepts even today.

Structure of finance department

Board of Directors

Finance Director

Accounting Manager

Senior Officer

Sr. Officer Executive

Sr. Officer Sales Tax

Junior Officer

Accounts Trainee

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Functions of finance department

Supervision of cash receipt and payments and safe guarding of cash balance. custody and safe guarding of securities Dealing with insurance policies and other valuable papers Record keeping and reporting All the dealings of finance is done in the head office of the company. Only the salary and petty cash payments are done in the factory office. The accounts are kept in double entry system. The company has reached to the stage of profit in this year after continuous loss in the previous years.

Accounting Registers
The important books of accounts maintained by the company for its accounting purpose are as under;  Cash book  Bank book  Ledgers  Stock register  Sales register  Purchase register  Journal register etc. The entire accounting system of the company has been computerized. Company maintains the following documents support of the above books of accounts maintained in the computer.  Cash vouchers with supporting documents.  Bank vouchers.  Purchase invoices  Sales invoices  Journal vouchers for Expenses  Job card which shows the daily productions

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Significant accounting policies

The significant accounting policies followed by the company are as stated below:

 Depreciation
Depreciation has been provided on fixed assets under straight line method at the rates and in the manner given under schedule and IV to the companies Act, 1956.

 Revenue Recognition
Revenue from sale of goods is recognized at the point of dispatch to the customers.

Inventories, Tools and Spares

 Raw materials are valued at FIFO basis.  Work-in-progress is valued at cost. Cost includes indirect cost.  Finished goods are valued at lower of cost or net realizable value. Cost includes excise duty and indirect costs.  25% tools and spares are written off to revenue.

Taxes on income
Taxes on income are accounted under the tax effect method On account of the substantial amount of unabsorbed losses and depreciation under the tax, provisions, the net position is different Tax Asset of Rs.275.90 lakhs. This has not been recognized in the accounts as there is no virtue certainty of taxable profits in the foreseeable future, which would offset the same.

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Policies of Finance Department

a. Depreciation is provided on straight line method b. Inventories of finished and semi-finished products produced and purchased are carried at the lower cost or market value. c. Expense payable and income receivable are accounted on accrual basis. d. Prior period expense/income and prepaid expenses up to Rs.15000 and Rs.5000 respectively in each case are accounted as correct expenditure/income.

Functions of Finance Department

I. II. III. IV. V. VI. VII. Procurement of funds Investment Allocation of profit and calculation of tax Maintaining Liquidity Cash collection and Disbursement Accounting Cost accounting

Financial results: Sl no. Particulars Operating profit 1 Financial charge 2 Depreciation 3 Profit before exception item 4 Net worth as at 31-3-09 5 Profit and loss account for the year ended 31 March 2009 Particulars 2008-2009 I Income Gross income from domestic Sales & Services 642269001 Less: Excise Duty & Education 58818325 Net income from Domestic sales &Services 583450676 Export Sales 9399149 Export Benefit as per DEPB scheme 481487 Total income from sales & services 593331312 Other income 5201706 Total 598533018 II Expenditure Decrease in inventory 39176835 Raw material consumed 306302413

Year-2008-2009 989 50 44 895 2392

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Manufacturing, selling, Administrative & other expenses 232555267 Sub Total 499680845 Operating income before financial charges and 98852173 depreciation

Financial charges

5033944

Depreciation III Profit before exceptional items

4336929 8948130

IV Amounts written off on asset held for sale 800000 V Prior period income 543680 VI profit before tax 88137620 VII Income tax for the year 28216134 y Current tax y Deferred tax income/(Expense) VIII Fringe Benefit Tax for the year 1732826 281479

IX Net profit after tax 57907181

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Balance Sheet as at 31st March 2006 Particulars As at 31-3-2009 (Rs)

I Source of funds 1. Shareholders Funds. (a) Capital (b) Reserves & Surplus 2.Loan Funds (a) Secured Loans (b) Unsecured Loans Net Deferred Tax Liability

10400600 135225667 61404520 64404817

239231667

125809337 8118335

Total II Application of funds 1. Fixed Assets (a) Gross: Block b) Less:Depreciation (c) Net Block (d) Capital Work in process (e) other assets held for disposal 2.current assets, loans & advances (a)Inventories (b)Sundry debtors (c)Cash & Bank Balances (d)Other current assets (e)Loans & Advances

373159339

161488525 116851003 106197736 55290789 29538484 206000

25073156 150347938 9940265 5190401 23973389

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Sub Total Less: Current Liabilities & Provisions (a) Liabilities (b)Provisions Sub Total: Net Current Assets TOTAL

440183589

141924054 10129469 152053523 288130066 373159339

Accounting Policies

a) The accounts are prepared on accrual basis. Under the historical cost convention in accordance with accounting standards issued by the central government/the institute of Accountant of India, except otherwise stated. Accounting policies not specifically referred to herein are consistent and in consonance with generally accepted accounting principles.

b) Revenue Recognition Expenses & Income considered payable and receivable respectively are generally accounted for an accrual basis. Insurance claims loaded with underwriters are accounted on settlement basis (ie cash basis) and medical reimbursement is accounted on pay-as-you-go-basis, in view of the uncertainties involved. Sales accounted on dispatch of goods ex-works, inclusive of the statutory Central Excise Duty & Education chess thereon and excluding sales tax. Sales return are accepted on actual basis, by deducting from sales, which is in conformity with the relevant sales tax rules and regulations.

c) Fixed Assets
At each balance sheet date, the company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exits, the recoverable amount asset is estimated in order to determine the extent of the impairment loss. Recoverable amount of an assets net selling price and value in use .Estimates, averages and simplified computations are used in estimating the value considering the appropriateness of this technique to the given set of circumstance where essential, the 51
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estimated future cash flows expected from the continuing use of the asset and from its disposal is discounted to their present value using a pre- discount rate that reflects the current market assessments of time value of money and the risks specific to the asset reversal of impairment loss, if any, is recognized immediately as income in the P & L a/c.

d) Depreciation
It is provided on Straight Line Method at the rates as per schedule XIV to the companies Act, 1956, as amended up-to-date. Depreciation on assets acquired/sold during the year is provided on pro-rata basis for the period put to use. Rate of Depreciation on various Groups of fixed assets have been shown in the fixed assets schedule forming part of the accounts. Depreciation on assets, whose actual cost does not exceed Rs5000/- is provided at rate of 100 % as statutorily required.

e) Inventories Raw Materials including Raw Material in process, semi finished goods, finished goods and stores and spares are valued and carried at lower of cost or net realizable value. Slow-moving inventory of raw materials and finished goods are valued at cost or net realizable value, whichever is lower. Loose Tools (less written off) are carried out at cost, which is lower than net realizable value. The above have been valued in conformity with the mandatory accounting standard to revised, adopting FIFO cost formula. In relevant cases, the machinery spares in stock have been devalued below cost to realistic realizable values and to zero value in the case of obsolete/unusable spares if any is separately disclosed in the accounts. Scrap is valued at Net Realizable Value.

f) Taxation
Provision is made for income tax liability estimated to arise on the results for the year in accordance with the Income-Tax Act, 1961.In accordance with the accounting standard 22 issued by the ICAI, Mandatory with effect from 1-4-2002, the deferred tax resulting from timing differences between Book and Tax Profits is accounted for, using the tax rate and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is 52
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recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future. Advance income tax paid has been offset against provision for income tax and the net amount is shown in the balance sheet. This change in the accounting policy has not affected the results of the operations of the company.

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IV.7 SYSTEM DEPARTMENT

There is no any separate department. But here some systems are used for their work easier and faster.

Soft ware configuration:

Operating system Windows 2000

Hardware:
Network LAN (Local Area Network) Microprocessor type Pentium IV Processor speed 2.8 Gbps Random access Memory 512 MB or More

System analysis and Design:

System analysis and design is done by the head office.

System Maintenance:
Annual Maintenance has here.

Features of System:
         Rapid deployment / implementation time. All order Information recorded in one place provide quick easy access to details. Key order posting activities are automated It is much secret in nature. Another person can access this software only if he know the password. Low maintenance cost. Enables HR staffs to track & access the cost associated with order processing billing campaign. Monitor progress of orders. Prevents duplication of errors. System can be configured to match your business needs.

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Pros & Cons of System: Pros

 It is user friendly.  Maintenance cost is very less  Duplication is avoid

Cons
 It can be operated only knowledgeable person  If any problem occurs in the system that will affect the whole functions of the department.

Frontend & Backend tools:

Frontend Oracle developer 2000 Backend- Oracle 6i for users every time.

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CHAPTER-V SWOT ANALYSIS

STRENGTHS

y y y y y y y y

Superior image and reputation of the firm. High quality of products Better transportation facilities It is having a market share of about 80% Good manufacturing infrastructure Clean safe and hygienic environment Better employee management relationship It is service oriented firm working for the welfare of the farmers.

WEAKNESSES

y y y y y y y

Low advertisement and promotional activities High cost of technology Scarcity of raw materials Lack of sufficient employees High cost of production Lack of sufficient research and development schemes Less margin given to the outlet owners to match the existing competitors

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OPPORTUNITY

y y y y

High demand arising from the market . Scope of product diversification Products can compete in international markets Plant capacity can be increased

THREATS

y y y y y

Government policies and practices Low price of competitors Large number of competitors Seasonal fluctuation in availability of raw materials Raising sales of substitute products

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CHAPTER-VI

CONCLUSION
The in plant training is very important to the management students. It was to gain the practical knowledge on the overall functioning of the various departments of the organization. During this study a lot of practical knowledge had been gained about the foundry industry. This study proved to be helpful in gaining idea about the various activities undergone in a real life business situation. Also it helped to gain more information about the present condition prevailing in the industry and their strategy that will prove beneficial in the future ventures. MIDAS is one of the leading companies in the Retreading industry.

The company has got number of loyal workers, staffs and controllers, whose coordination and loyalty on their works help them to meet their success. The organization structure of this firm is also considered as the most important part, which helps them to meet their growth in business. The firm gives more important to the quality and quantity of the product. They are constantly developing new compounds for various uses and for improved mileage and properties. The company has good quality control system. The company more bothered about the quality. There is also a good management existing in the organization. During the internship work the student faces various problems and obstacles but they try to overcome these problems.

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BIBLIOGRAPHY

Authors Philip Kotler

Books Marketing Management

Publishers Pearson Education Tata McGrawHill K.K Gupta.

Edition 11th edition 4th edition 2nd edition

Aswathappa K

HR and Personnel Management

KKothari C. R

Research Methodology

Khan M Y & Jain P.K

Financial Management

Tata McGrawHill

3rd edition

Websites: www.google.com www.midastreads.com

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