A REPORT ON INPLANT TRAINING WITH REFERENCE TO

Malabar Spinning & Weaving Mills

Submitted to

ANNA UNIVERSITY OF TECHNOLOGY

COIMBATORE

For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

Arun Mathew

Reg No :098001185003

Under the Supervision and Guidance of

Ms.Uma Maheswari K, B.Com, MBA

Lecturer

RVS FACULTY OF MANAGEMENT

KUMARAN KOTTAM CAMPUS

KANNAMPALAYAM

COIMBATORE – 641 402

AUGUST - 2010
 BONAFIDE CERTIFICATE
This is to certify that the Inplant training report submitted to Anna University of
Technology, Coimbatore in partial fulfilment of the requirements for the award of the degree
of MASTER OF BUSINESS ADMINISTRATION is a record of original research work
done by Arun Mathew during the period June 2010 to July 2010 of his study in RVS
FACULTY OF MANAGEMENT, Kannampalayam, under the supervision and guidance of
Ms.Uma Maheswari K and the training report has not formed the basis for the award of any
Degree/ Diploma/ Associateship/ Fellowship or other similar title to any candidate of any
university.

FACULTY GUIDE DEAN

Viva-Voice examination held on__________________________

INTERNAL EXAMINER EXTERNAL EXAMINER

Date:

Place:
 DECLARATION
I, Arun Mathew hereby declare that the Inplant training report submitted to Anna
university of Technology, Coimbatore in partial fulfilment of the requirements for the award
of the degree of MASTER OF BUSINESS ADMINISTRATION is a record of original and
independent research work done by me during June 2010 to July 2010 under the supervision
and guidance of Ms. Uma Maheswari K, B.com, MBA Lecturer, RVS Faculty of
Management, Kannampalayam and it has not formed the basis for the award of any Degree/
Diploma/ Associateship/ Fellowship or other similar title to any candidate of any university.

Date: SIGNATURE OF THE STUDENT

Place: ARUN MATHEW

 AKNOWLEDGEMENT
I wish to express my hearty thanks to Mr Nanda Kumar, Chairman, Malabar
Spinning & Weaving Mills for granting me permission to do the project work in his
esteemed organisation.

I humbly express my profound thanks to Mr. George, General Manager, Malabar

Spinning & Weaving Mills for his constant encouragement and support during the tenure of
my work.

I express my wholehearted gratitude to our Honourable chairman of RVS Trust

Dr. K. V. Kuppusamy and Managing Trustee of RVS Trust Thiru. K. Senthil Ganesh,
MBA, M.S., for allowing to develop the project in their institution

I am extremely thankful to Dr. Y. Robinson, M.E, Ph.D, Director, RVS

Educational Trust’s Group of Institution, Kannampalyam and to Dr. B. Adalarusu,
M.B.A., M.Phil, P.G.D.P.M.I.R, H.D.S.E, M.I.S.T.E.,Ph.D, Dean RVS Faculty of
Management, Kannampalayam for giving me the wonderful opportunity to feel the corporate
experience through this project.

I am deeply indebted to my faculty guide Ms. Uma Maheswari K, B.com, MBA for
his/her scholarly guidance, valuable suggestions and encouragement throughout the duration
of this project.

I also express my gratitude to the respondents, Parents, and dear friends without
whom the project would not have been successful. Above all, I wish to thank the almighty for
giving courage and wisdom to take up this project and complete it successfully.

ARUN MATHEW
 CONTENTS

S.NO PARTICUARS PAGE NO

1 1. INTRODUCTION 1-2
1.1. ABOUT INTERNSHIP TRAINING

2 2. INDUSTRY PROFILE 3-6

3 3.COMPANY PROFILE 7-11

4 4.DEPARTMENT PROFILE 12-64

4.1. HUMAN RESOURCE DEPARTMENT

4.2. MARKETING DEPARTMENT
4.3. PRODUCTION DEPARTMENT
4.4. FINANCE DEPARTMENT
4.5. SYSTEMS DEPARTMENT

5 CONCLUSION 65

6 BIBLIOGRAPHY 66

7 APPENDIX 67-69
 I. INTRODUCTION

I.1 ABOUT INTERNSHIP TRAINING:-

Internship training is an exercise for the students who are undergoing M.B.A
program. The objective of the study is to make the student familiar to the current industrial
scenario. It provides the student with the first hand idea on the general working of the
organization. The students get an environment where he/she can actualize the knowledge he
has acquired in his curriculum. The exercise is an opportunity for the student to understand
the organizational structure, the major departments, flow of information and various other
functions in an organization.

Some of the things that can be learned from this training are

 To acquire the knowledge about the organization setup of Thiruvannur cotton Mills
Pvt Ltd.

 To know about the functional as well as managerial aspects of the company.

 To know about the production function of the company.
 To have practical knowledge of process involved in company.
 To know welfare measures provided to workers in company.
 To know the marketing concept involved to market the product of the company.
 To know about the income and the out flow of the company.
 To know what all are the systems are there in the company.
 To know how the labours are employed in the company.
 To know how the machines and all are maintained
OBJECTIVES OF THE STUDY:-

 To analyze the effectiveness of Malabar Spinning & Weaving Mills and give the
recommendation to improve existing sales and production.
 To analyze the consumer behaviours and to study the parameters influencing the
purchase decision.
 To study and analyze the production performance of Malabar Spinning & Weaving
Mills

SCOPE OF STUDY

The present study is based up on the activities of Malabar Spinning & Weaving Mills,
P.O. Thiruvannur Nada, Calicut-673029.

METHODOLOGY

The study is based on both primary and secondary data. The primary data are
collected from the manager and other members of company and secondary data are collected
from annual financial statements.

LIMITATIONS OF THE STUDY:-

The study has certain limitations. The main of them are:-

 The complete details are not available from the firm and therefore scientific method
could not be employed.
 The information is collected from the different departments from the firm.
 The time allowed for the study is only a few weeks. It is not sufficient to make an
intensive study of the unit.
INDUSTRY PROFILE
 II. INDUSTRY PROFILE

COTTON TEXTILE INDUSTRY

The country’s cotton production has been steadily on the rise with better farm
practices. The average yield has increased to 500 kg per hectare. From a level of importers of
cotton, India has become an exporter of cotton earning a name in the international market.

Presently India is second largest cotton producer in the world next to US and about to
overtake the US as the number ONE in the next couple of years. It is the result of various
factors. Primarily because of rising cultivations of Bt.cotton (Bacillus thuringnsis) and reduce
the farmers input costs, while the yield as well as quality are substantially much larger
compared to traditional varieties. In view of this development, the cotton cultivation acreage
has been steadily going up in India. The farmers have become more knowledgeable to follow
scientific methods to cultivate high yielding long staple cotton varieties.

Besides individual mills are also simultaneously taking steps to improve the cotton
production along with Technology Mission on cotton (TCM), the cotton development
research Associations of organizations (CITI), South Indian Textiles Mills Association
(SIMA) and Kerala State Textile Corporation (KSTC). The resultant factor is quality and
quantity of raw material supply has substantially improved in the country. Due to
globalization of our economy, the conscious of quality inputs and pricing have become
competitive to the international standards and prices. Supply of quality raw material
availability sources of raw material from major cotton exporting countries.

Every organization is a deliberate and planned endeavour of people whose common

goal can be achieved through attainment of targets and goal by individual members in it. No
organization can survive for long unless it takes care of prudent utilization of resources
particularly human resources.

In brief, good business is generally the result of good organization which can
emerge only if it consists of good people who work together as a team. The textile industry
occupies a unique place in our country. One of the earliest to come into existence in India,
it accounts for 14 per cent of the total industrial production, contributes to nearly 30 per
cent of the total exports and is the second largest employment generator after agriculture.
The Indian textile industry is one of the largest in the world with a massive raw material
and textile-manufacturing base. Indian economy is largely dependent on the textile
manufacturing and trade in addition to other major industries about 27 per cent of the
exchange earning are on account of export of textiles and clothing alone.

In India organized textile mill sector has increased from 1787 in 2003-04 to 1789 in
2004-05. During the year 2003-04 the production of yarn was 3051.07 million kg and it had
increased to 3220.59 million kg in 2004-05. The number of workers worked in textiles mills
during the year 2003-04 was 9,28,000 and it have decreased during the year 2004-05 was
9,18,000.

India has the second-largest yarn-spinning capacity in the world (after China),
accounting for roughly 20 percent of the world’s spindle capacity. India’s spinning
segment is fairly modernized; approximately 35 to 40 percent of India’s spindles are less
than 10 years old.

During 1989-98, India was the leading buyer of spinning machinery, accounting
for 28 per cent of world shipments. India’s production of spun yarn is accounted for
almost entirely by the ―organized mill sector,‖ which includes 285 large. Man-made
fibers, wool and silk segment grew by modest 4.5 per cent per annum during the 5-year
period 2000-01 to 2005-06.During the first year of quota-free global trade, production
increased leaps and bounds. Textiles production increased 10 per cent over 2004. The
growth was fuelled by a 22 per cent rise in production of other textiles (including
apparels). Cotton textile also posted an increase of nine percent.

In the last six years, an estimated US$ 6.7 billion has been invested in the textiles
sector, aided by the Technology Up gradation Fund (TUF) scheme. The TUF scheme
expires in March next year (2007) and the quotas on China will be lifted in 2008. Hence,
companies will continue to add capacities over the next year. Also, according to CRISIL,
the sector is likely to rise over US$ 3.5 billion from the capital markets in the next few
years.
 The cotton textile industry, one of the oldest and major consumer industries in India,
has assumed national importance by virtue of size, investment, output and employment. The
industry produces a wide range of fabrics to suit specific needs of consumers. Further, the
cotton textile industry occupies a pre eminent place in the Indian economy by contributing a
major share and to the countries industrial production and providing cloth to its millions. The
industry also serves by providing direct employment to 60,00,000 workers in several of its
related activities.

India is one of the largest textile producing countries in the world. The share of the industry
in the export basket of India is around 20%. However, textile industry is vast developing
sector and when the competitions are exorbitant especially in its design and quality we have
to adopt modern technology management, machine so as to complete with other countries in
the international market.
COMPANY PROFILE
 III. COMPANY PROFILE

Malabar spinning and weaving mills is one of the premier textile industrial
establishments in Kerala. Ever since its inception, this mill has played a dominant role in the
industrialization of the whole Malabar. It is the first textile mills in Kerala and cotton textile
is the first industry in the whole Malabar. This mill was honored with a ― Certificate of merit‖
form the Government of India for its outstanding performance in exporting in 1975.

The mill, popularly known as ―Thiruvannur cotton mill‖ is located in an area of 14.7t5
acres at Thiruvannur which is 6 kilometers south-east to Kozhikode town. It was in the year
1884, the foundation stone for this mill was laid down by W.H.Will Kingston, the district and
sessions Judge of Malabar. The site for the factory was initially brought from the famous
―Kozhippuram Tharavadu‖ on lease for 99 years.

In its initial stage the company had made an opportunity to give employment to 200
labourers. By using its own fund the company started a general hospital under the name
―Prince of war‖. The same hospital is still functioning at Panniyankara in Kozhikode under
the jurisdictions of corporation of Calicut. The management had to close the company several
times due to financial stringencies. The subsequent closure due to financial losses in the years
1966, 1969 and 1976 compelled the Kerala Government to authorize the power of the
company to Kerala State Textile Corporation [KSTC] under the relief undertaking Act in
1978 for 5 years.

It was in the year 1983 the Kerala Government decided to take over the mill
completely and the name has been changed to Malabar Spinning & Weaving Mill in 1989,
the management stopped the weaving section of the mill due to financial losses. Fifty percent
of the weaving workers voluntarily retired and the remaining were transferred to spinning
section.
THE COMPANY AT A GLANCE

Company address: Malabar spinning & weaving mills,

Thiruvannur Nada, Calicut-673029.

Year of commencement: 1884

Company owned by: Kerala state Textile corporation

General manager: Mr.P.George

Situation: Six kilometers south-east to Calicut town

ORGANIZATIONAL CHART

CHAIRMAN

Nanda Kumar [KSTC]

M.D

Ganesh [KSTC]

GENERAL MANAGER

George

FINANCE MARKETING

Krishnan Namboodiri Preamen

Rajitha Vijayalakshmi

Susmitha

PRODUCTION PERSONAL OFFICER[H R]

[Junior Manager] Sreejith
Pradeep TIME KEEPER
Preman Vijayakumar
[Assistant Manager Spinning] SALES
Jayanth Kumar Vijayalakshmi
Sajith Abbas GODOWN KEEPER
Sabu Pramen
[ PRODUCTION SUPERVISOR]

Ramachandran

Anoop
PRODUCT:

COTTON YARN

PRODUCTION RESOURCES

1. Raw material - cotton

2. Electrical power

3. Labor

4. Stores

5. Packing material

PROCUREMENT OF RAW MATERIALS

Presently Cotton is used as raw material which is bought from local and other
states. Depending upon the yarn demand situations, the management will take orders for the
raw cotton and likewise the production takes. The major contribution of cottons where from
Andra Pradesh, Tamil Nadu, and Karnataka etc
DEPARTMENT PROFILE
IV. DEPARTMENT PROFILE

 Human resource department

 Marketing department

 Production department

 Finance department

 Systems department
HUMAN RESOURCE DEPARTMENT
 IV.1. HUMAN RESOURCE DEPARTMENT

-Whole organization chart

GENERAL MANAGER

George

PERSONAL OFFICER[H R]

Sreejith

TIME KEEPER

Vijayakumar

-OBJECTIVES OF H.R DEPARTMENT

 Manpower Planning
 Recruitment
 Training and Development
 Induction
 Wages and salary administration’
 Statutory compliances
 Leave administration
 Grievance Redresser
 Personal counselling
 Compensations and Benefits
 Welfare
 Performance evaluation
-Sources of recruitment

Recruitment is the process of filling the vacancies. It is the first steps in selection
process.

In Cotton Mill direct recruitment method is used frequently for recruitment .The firm
places job advertisement in Malayalam and English newspapers. And in TV, media and tries
to attract as much as calibre people from the outside.

The company also have internal recruitment for filling the post by efficient and
skilled workers from the rank , promotion and Corporation have preferred local candidates
who belongs to surroundings.

There will be notice displayed on the notice board of the company and outside of the
company and like that workers will be recruited. As it is a Govt company staffs and managers
will be recruited according to P.S.E exams.

-Methods of selection

The basic requirement for a employees is 10th pass and other office staffs and all will
be according to the Govt norms. The General Manager will conduct the interview, and from
that he will appoint the employee. While selection they will try to avoid very sick person and
old persons

-Training & Development for employees

There will be regular training & development programmes for all levels of employees,
i.e. Senior Management to lowest level workers regularly.

-Training need analysis

How the training need is analysed for present employee, based on their performance
or while technology advances. To improve the quality of production or to reduce the cost
factor or avoiding accidents. Training need analysis is mainly done when a new worker joins
the company or when a new machine is placed then for the machinery handling and
maintenance. Training Analysis (sometimes called Training Needs Analysis (TNA)) is the
formal process of identifying the training gap and its related training need.

1 INTRODUCTION
2 DESIGN INTEGRATED TRAINING ANALYSIS

3 TRAINING ANALYSIS PROCESS

INTRODUCTION

Training can be described as ―the acquisition of skills, concepts or attitudes that result
in improved performance within the job environment‖. Training analysis looks at each aspect
of an operational domain so that the initial skills, concepts and attitudes of the human
elements of a system can be effectively identified and appropriate training can be specified.

TRAINING ANALYSIS AS A PROCESS OFTEN COVERS:

Review of current training

Task analysis (of new or modified system)

Identification of training gap

Statement of training requirement

Assessment of training options

Cost benefit analysis of training options

Training Analysis is most often used as part of the system development process. Due to the
close tie between the design of the system and the training required, in most cases it runs
alongside the development to capture the training requirements.

DESIGN INTEGRATED TRAINING ANALYSIS

K Tara Smith proposed and developed tools and methods for an integrated approach
Design Integrated Training Analysis, where the trade-offs between design and training are
both assessed in the light of the understanding of the operational tasks. This is being followed
in Malabar Cotton Mills

This approach also used information regarding recorded critical incidents to review proposed
training and to provide traceability between hazards and training.
TRAINING ANALYSIS PROCESS

Over the last 20 years the critical nature of the man-in-the-loop has changed from simply
manual dexterity and procedural operation to a state in which their decision making,
cognitive abilities, data assimilation, communication skills, and attitude are all crucial. In
addition the job structure of the personnel operationally involved with modern systems has
diversified in direct proportion to the complexity of the technology. This has fuelled the need
for a formal approach.

The task of training can be broken down into a number of discrete components, each
addressing a different part of the overall learning process. This breakdown is as follows:-

Psycho-motor Skills

Procedural Skills

Knowledge Transfer

Communication Skills

Colossal Thinking

Attitude Learning

Performance training.

The role of training analysis is to build a formal bridge between the available design data and
the training media and training objectives, in order to facilitate the transfer of training
elements into the operational environment.

For complex multi-user system a user-to-task map is often constructed to present the
relationship between the tasks and the identified team structure and also to identify new
groups of users that would need to have an understanding of the system. The training gap is
assessed by a comparison between the goals and tasks undertaken by the individuals and the
existing training.

There is a wide variety of training media that can be used, ranging from traditional lecture-
based teaching to sophisticated simulators. Different media will be more or less appropriate
for different activities. It is necessary to determine the most suitable and cost-effective
training media for the different areas.

There have been many different approaches defined however the system approach to training
has been the most successful.

Training Needs Analysis (TNA) is defined as the ―Identification of training requirements and
the most cost effective means of meeting those requirements‖.
Carrying out all TNA activates in accordance with SAT principles ensures rigorous visibility
in each design stage with clear audit trails from the initial Scoping Study through to the
recommended solution.

HOW TO CONDUCT A TRAINING NEEDS ANALYSIS

Training needs analysis process is a series of activities conducted to identify problems

or other issues in the workplace, and to determine whether training is an appropriate
response.

The needs analysis is usually the first step taken to cause a change. This is mainly because a
needs analysis specifically defines the gap between the current and the desired individual and
organizational performances.

WHO CONDUCTS NEEDS ANALYSIS & WHY?

An in-house trainer or a consultant performs a needs analysis to collect and document

information concerning any of the following three issues :

1. Performance problems

2. Anticipated introduction of new system, task or technology

3. A desire by the organization to benefit from a perceived opportunity

In all three situations, the starting point is a desire to effect a change. Given this, you
must know how the people who will experience change perceive it. In the absence of a needs
analysis, you may find employees resistant to change and reluctant to training. They may be
unable to transfer their newly acquired skills to their jobs because of the organizational
constraints.

A needs analysis often reveals the need for well-targeted training areas. However, we
must keep in mind that training is not always the best way to try to close a particular gap
between an organization’s goals and its actual performance. Those conducting the needs
analysis must get a clear idea of the problem, look at all possible remedies and report on their
findings to management before deciding on the best solution.

When properly done, a needs analysis is a wise investment for the organization. It
saves time, money and effort by working on the right problems. Organizations that fail to
support needs analysis make costly mistakes; they use training when another method would
have been more effective; they use too much or too little training, or they use training but fail
to follow up on it. A well-performed analysis provides the information that can lead to
solutions that focus on the areas of greatest need.

Process of conducting a training needs analysis is a systematic one based on specific

information-gathering techniques. Needs analysis proceeds in stages, with the findings of
one stage affecting and helping to shape the next one. There is no easy or short-cut formula
for carrying out this process. Each particular situation requires its own mix of observing,
probing, analyzing and deducting.

In many ways, the needs analysis is like detective work; you follow up on every lead,
check every piece of information and examine every alternative before drawing any solid
conclusions. Only then you can e sure of having the evidence on which to base a sound
strategy for problem solving.

A needs analysis is not a one-time event. Professional organizations administer needs

analysis at regular intervals, usually every year or two.

METHODS OF IDENTIFYING TRAINING NEEDS

Training needs will differ with the backgrounds of the employees to be trained, and their
present status in the organization. Basically, a candidate for training may come from any one
of three groups :

1. NEW HIRES

2. VETERAN EMPLOYEES

3. TRAINEES CURRENTLY IN THE TRAINING PIPELINE ( CURRENTLY IN THE

TRAINING PROGRAM )

Consideration of the varying needs of these groups provides a frame of reference for
discussing and suggesting the methods of identifying training needs :

• NEW HIRES

Addition of new employees creates high and low peaks in placing new persons into the
training program. This problem may be solved by a program where progression is made in
different sequences. It will eliminate a jam that will occur if all phases of the program must
be taken in a definite sequence.

The new employees will normally be of somewhat different backgrounds. Being new, they
are not familiar with their new employers. As a result, the earliest phases of the training must
concentrate on company orientation. During these phases, the organi- zation, organization
policies and administrative details should be covered. It is also a suitable time to acquaint the
trainees with what will be expected of him, and how he will be evaluated throughout the
phase of training.

• RETAINING & UPGRADING VETERAN EMPLOYEES

The people in this category offer a real challenge to the training department. There- fore, the
number and amount of training required by this category should be carefully considered.
Often the retraining and upgrading of former employees can be very rewarding for training
instructors. At least two schools of thought exist as to how these employees should be
rekindled. There are advantages in keeping this group intact and tailoring the program to their
needs. On the other hand, this category of employees can also make significant contribution
to training if they are co-mingled with the new hires.

• PIPELINE EMPLOYEE REQUIREMENTS

A good training program will normally have participants in various phases of completion. An
awareness of completion dates and how the potential employee will be employed should be
the concern of the training staff and also the employee’s supervisor. A trainee should have a
challenge in all phases of his training. All these challenges should not be confined to those
phases where the pipeline employee is sitting in a classroom. Therefore, it is recommended
that thorough interim test-work be given to pipeline employees in periods between formal
classes. This may take the form of solidifying what he learned in the prior phase and serve as
preparation for the coming phases.

-Designing training programs

There will be both on the job & off the job training. Off the job training is imparted
based on the need and category of staff. Generally training is given to a group and there will
be external training institutes called upon for giving training for the employees.

On the job training:

Job instruction training (JIT)

The JIT method is a four step instructional process involving preparation,

presentation, performance try out and follows up. It is used primarily to teach workers how
to do their current jobs. The four steps followed in the JIT methods are:

 The trainee receives an overview of the job, its purpose and its desired outcomes with
a clear focus on the relevance of training.
 The trainer demonstrates the job in order to give the employee model to copy.
 The employee is permitted to copy the trainer’s way.
 Finally the employee does the job independently without supervision.
Coaching

Coaching is a kind of daily training and feedback given to employees y immediate

supervisors; it involves a continuous process of learning by doing. It may be defined as an
informal, planned training and development activity provided by supervisors and peers.

Coaching could be put to good used when:

  When an employee demonstrates a new company.
 An employee expresses interest in a different job within the organization.
 An employee seeks feedback.
 An employee is expressing low morale, violating company policies or practices or
having performance problems .
 An employee needs help with a new skill following a formal training programme.

Effective working obviously, requires patience and communication skill it involves

 Explaining appropriate ways of doing things

 Making clear why actions were taken
 Stating observations accurately
 Offering possible alternatives
 Following up

Mentoring

Mentoring is a relationship in which a senior manager in an organization assumes the

responsibility for grooming a junior person. Technical interpersonal and political skills are
generally conveyed in such a relationship from the more experienced person. The main
objective of mentoring is to help an employee attain psychological maturity and effectiveness
and get integrated with the organization. Formal mentoring can be very fruitful, if
management invests time and money in such relationship building exercise

 Job rotation

This kind of training involves the movement of trainee from one job to another. This
helps him to have a general understanding of how the organization functions. The purpose of
job rotation is to provide trainees with a larger organizational perspective and a greater
understanding of different functional areas as well as a better sense of their own carrier
objectives and intervals. Apart from relieving boredom, job rotation allows trainees to build
rapport with a range of individuals within the organization, facilitating future co-operation
among departments.
OFF THE JOB METHODS

 Vestibule training

In this method the employees are trained in a separate part of the organization. Actual
work conditions are stimulated in a class room.

Materials those are used in a job performance are also used in the training.

 Role playing

In role playing method involves human interaction, that is realistic behaviour in

imaginary situations. This is mostly used for developing inter personal interactions
and relations.

 Lecture method

It is a traditional and direct method of instruction. The instructor organizes the

material and gives it to a group of trainees in the form of a Talk. To be effective the
lecturer must motivate and create interest among the trainees.

 Conference or discussion

This method involves a group of people who pose ideas, examine and share facts,
ideas and date, test assumptions, and draw conclusion, all of which contribute to the
improvement of job performance. The discussion involves two way communication
and hence feedback is provided.

 Programmed instruction

The subject matter to be learned is presented in a series of carefully planned

sequential units. The trainee goes through these units by answering questions or
filling the blanks. This is expensive and time consuming.
-Assessment of training effectiveness

The assessment of the training is mainly done by monitoring the work of the
employee, if that person is well working then the training was effective if the person is not
working properly then the training was not effective. Every month there will be an orientation
class for the development of the employees.

-Induction & Orientation

Induction & orientation is given to the newly joined employees. A group induction is
organised for the newly joined group of employees once in 6 or 12 months. There will be
orientation classes given to the whole employees once in six month.

-Performance appraisal system

The performance appraisal system in the company is that when a person joins the
company at first he will be a trainee and after completion of two years then he will be a
permanent employee. So for the trainee, they will be earning a low wage and when he
becomes permanent the wage also increases. By each year the salary or the wage also
increases according to the number of years he worked in the firm.

-Motivation methods

There are motivation classes and all conducted by various persons and aattendance award is
given to all employees who are present in the mill for a certain number of days.

 Salary hike
 Bonuses
 Incentives
 Allowances
 Other Facilities
-Labour welfare facilities

There are several welfare facilities some are canteen, rest room recreation room,
library etc.

Some of the welfare activities undergone in the company are as follows,

 FIRST AID APPLIANCES

The first aid boxes of cupboard shall be distinctively marked with a red cross
on white background. First aid boxes shall contain sterilized dressing, sterilized burn
dressings, one bottle of mercurochrome solution in water, and one bottle of adhesive plaster,
sterilized eye pads, tablets of aspirin or any other analgesic. Polythene wash bottle containing
potassium permanganate crystals. These first aid facilities are provided here in all
departments.

 CANTEEN

The company has a canteen which is one of the most efficient parts of the
company. The canteen is working in all the shifts. The facilities are available to all the
employees. Each employee is given tokens monthly. The management charges only a
nominal amount for the fund. the amount is deducted from the salary of the employees.

 HOSTEL

The company provides the facility for workers to stay within the campus of
the company by having a hostel with it. With this facility, workers gain the place for shelter
with free of cost. as per management side, they can acquire labour at exact time for working.

 TOILETS

The toilets are built separately for each department with good water facility.
For workers it is built separately in two areas for the convenience of the worker.

 APRONS MASK AND CAPS

To safeguard the workers from the dust, company is providing aprons, masks
and caps for each worker, working in the company.
  PENSION SCHEME
The scheme has been formulated for those employees who have retired from their job.

-Pay role processing

Pay role is according to the hierarchy of the organization. For the Managers and for
the staff as per the Government norms the salary will be there, for the permanent workers the
daily wages will be about 175 and for the trainees 125 excluding the other beneficial
payments and allowances.

HR policies & frame working

General Manager, H R and his team in consultation with Management develops HR

policies. The human resource department in an organization is a link between job seekers or
employees and the management. The role of a human resource (HR) department varies from
interviewing potential candidates, to providing the best possible atmosphere for task
efficiency at a minimal cost to the company.

The HR policies in organizations relate to corporate nationality, fair employment,

family oriented personnel, health care, and place of work or domestic violence policies. HR
policies differ from organization to organization. Effective HR policies and practices not only
draw boundaries for employees but also recognize and address their needs.

Fair employment policies normally cover sexual harassment, equal employment,

compensation, and career planning. Family oriented personnel policies lessen stress and
permit workers to do their best. These include policies for flexible job schedules and
dependent care benefits.

There is a tendency amongst employees to test limits and act creatively in workplace
situations, so business houses also need a strategy for developing, communicating and
implementing HR policies that reflect their standards of acceptable behavior.
-Vision & mission statement

Vision for the company is growth of the people,

Mission of the company is full employment.

-Outsourcing of HRM process

Usually when there is a need of HR then from other Govt organizations labors will be
called out on contract basis. Suppose where is an urgent then the labors will be hired from
sister companies.

Grievance handling method

Generally, grievances means any factors involving wages, hours of work or condition
of work environment. By grievances we can see that mostly between the trade unions and the
Government. So the trade union leaders will be out for open discussion and by that meeting
both will negotiate each other and last the grievance will be solved.

-Union policy framework

The major trade unions are:

 INTUC (Indian National Trade Union Congress)

 AITUC (All India Trade Union Congress)
 CITU (Centre of Indian Traders Union)
The trade unions demand for their needs to the management and to the Government.
And still if there is the denial of what they demanded, then they will start strikes and all till
their needs are fulfilled.

- Arbitration Process

Arbitration Process was done by each department heads and it will reported to the top
management at the Thiruvananthapuram if the matter is severe, and to Government and
KSTC.

-Workers participation management

Workers work as a team in order to achieve the organizational goals, increase

productivity, increase quality, decrease waste etc.
MARKETING DEPARTMENT
 IV.2. MARKETING DEPARTMENT

-Product profile

Cotton yarn is the product and they will be in yarn cones.

 One cone’s weight will be 1.25Kgs.

 One bag will having of 40 cones and the weight of one bag will be 50Kgs.
 160 bags will be there in one load.

-Department chart

GENERAL MANAGER

George

JUNIOR MANAGER

Preamen

OFFICE STAFF

Vijayalakshmi

KSTC

Kerala State Textile Corporation

Marketing functions

The main function of the company is that to provide the best standard yarn to the
companies who needs, and so by that a better quality cloth can be produced. If better quality
yarn is produced then soon there will be a high demand and likewise there will be external
demand increased. And so the export also takes place. By this a huge revenue also will be got
for the Government. The other main aim of the marketing department is that if there is an
order then soon without any delay the product should be reached at hands of the customers.

 Developing marketing strategies

 Capturing marketing insights
 Connecting with customers
 Building strong brand image
 Delivering value to customers

Product distribution channels

K.S.T.C will be mainly taking care of the product, they will be calling for tender and
who quotes the best price to them the yarn will be sold. If there is no sales then the yarns will
be taken to the godowns which are situated at Bombay and form their it will be sold.

Marketing strategy

According to the customer need and requirement the production takes place. And the
quality of the yarn also will be highly maintained. Mainly the change of the demand will be
like the yarn’s count so according to the change of the demand for the yarn, the market
demanded yarn will be produced.

Target achievement methods

The target is fixed only after the confirmation of the value of goods in market and if
the demand for the goods in the market is high or if any order is placed then according to the
order, the production process takes place.
Marketing product lines

The product lines of the cotton mill was marketed using the same channels and by the
same strategy. As per the orders and all reseved soon they will be producing the cotton yarn
as fast as they can and their by supplying to them.

Customer beneficial & satisfaction identification methods

According to the customer need and requirement the production takes place. And the
quality of the yarn also will be highly maintained. Mainly the change of the demand will be
like the yarn’s count so according to the change of the demand for the yarn’s count, the
market demanded yarn will be produced

Identification of customer expectation

Each customer will be looking for their own standards of cotton yarn so each of them
need a totally different product. So according to the customer requirement and satisfaction
they have to produce the cotton yarn and that should meet the customer expectation.

Customer fulfillment and service

As there will be orders from various customers then soon without making any delay
they will be producing the yarn and soon it will be delivered to them. As part from the
company they will be very keen about the standards of the yarn and all, as per the order they
will be producing high quality yarns and that will be delivered to them.

Customer order receive and follow up

The company will be getting different quotations and all from various companies and
all from that they will be choosing the best that will be beneficial to the company. On the
other side a major part of the orders and all will be taken by KSTC and they will be allotting
to which customer they have to give the yarns. When the orders are received soon the
production for the order starts up and soon it will be delivered to them.
Marketing tools & techniques

A marketing strategy is an overall marketing plan designed to meet the needs and
requirements of customers. The plan should be based on clear objectives. A number of
techniques will then be employed to make sure that the marketing plan is effectively
delivered. Marketing techniques are the tools used by the marketing department. The
marketing department will set out to identify the include public relations, trade and consumer
promotions, point-of-sale materials, editorial, publicity and sales literature.

Market research enables the organization to identify the most appropriate marketing mix. The
mix should consist of:

 The right product

 Sold at the right price
 In the right place
 Using the most suitable promotional techniques.

Marketing techniques and tools are employed at three stages of marketing:

Stage 1 Stage 2 Stage 3

Prior to marketing During marketing activity After marketing activity

activity

Market research Developing the Evaluation of marketing

marketing mix effectiveness

Market demand for their product

As cloth is one of the basic necessity for man so for producing cloth there is the need
for the yarn so every year the demand for the yarn is increasing.

Demand analysis

While the production is going on KSTC will be looking for the sales by giving add on
newspapers and all and likewise there will be some quotations and from all that they will be
looking for which product they gets more orders and by analyzing those things KSTC will be
saying that what type of yarn to be produced.
Methods of overcoming competitors

The best method of overcoming the competitors are by supplying the best verity of
yarn with high quality. And selling that yarn by market rate price. By this the customers will
be always be there.

Market segmentation

Market segmentation is mainly like

 Domestic
 State
 National
 International

Advertisement & sales promotion

As the population is increasing day by day, the need for the cloth also increases as it is
one of the basic essentials for man. And so for producing the cloth the yarn is required. There
have been a steady increase of the demand for the yarn. As part of sales there have not been
any high advertisement but providing the high quality yarn is one of the promotion that the
company is getting. Apart from all these there have been quotations for sales and all which
will be published in websites.

Product publicity

There is no big publicity for the product but product sales tender notice will be
advertised in internet and in newspapers as well.

Customer relationship management

Customer relationship management (CRM) is a broadly recognized, widely-

implemented strategy for managing and nurturing a company’s interactions with customers,
clients and sales prospects. It involves using technology to organize, automate, and
synchronize business processes—principally sales activities, but also those for marketing,
customer service, and technical support.
 The overall goals are to find,

 Attract, and win new clients,

 Nurture and retain those the company already has,
 Entice former clients back into the fold, and
 Reduce the costs of marketing and client service.

Customer relationship management denotes a company-wide business strategy

embracing all client-facing departments and even beyond. When an implementation is
effective, people, processes, and technology work in synergy to increase profitability, and
reduce operational costs.

Customer Retain Management

An effective system of communication should provide opportunities for customer

information. The customer is the ultimate object whose satisfaction and goodwill are of the
utmost importance for the success of an organization. In carrying out the sales function of
planning, the management must communicate with customers. There were times when the
customer was not the central figure. But today the customer is the kingpin and sovereign of
the market whose needs and satisfaction, and the winning of whose goodwill, is of prime
importance in these days of competitive setup. These must be communicated promptly. It is
the communication which establishes the contacts with the customers. Customer
communication helps to establish a relationship with customers who buy and are the sources
of products. The media used for advertisements can also be used effectively to reach the
customers.

-Product selling process

There will be quotations and all which will be got from various companies and
thereby the company will be choosing the best quotation and there by the yarn will be
delivered to them. Apart from all these KSTC will be playing the major role as they will be
taking initiative for selling the yarns.
PRODUCTION DEPARTMENT
 IV.3 PRODUCTION DEPARTMENT

-Department chart

GENERAL MANAGER

George

JUNIOR MANAGER JUNIOR MANAGER

Pradeep Preman

Assistant Manager Spinning Assistant Manager Spinning

Jayanth Kumar Sajith Abbas

Assistant Manager Spinning

Sabu

PRODUCTION SUPERVISOR PRODUCTION SUPERVISOR

Ramachandran Anoop
Layout design
Production process

 MIXING AND BLOW ROOM

Bales are different variety of cotton are opened and layer of cotton from able each are
fed alternatively with a view to obtain uniform blend. For getting different counts as yarn,
cotton of different variety and soft waste are mixed in a predetermined proportion. The cotton
for each mixing is fed into the plant in the blow room where external impurities are removed.
The compressed cotton opened into small tufts and a lightly compressed continuous sheet
known as LAPS are rolled upon cylindrical rod. The waste obtained in the process are
droppings, quality fly and lap bits. In the case of chute feed blow room the cotton converted
into sliver bye-passing carding.

 CARDING

In this department, the cotton is completely opened into individual filters. Cleared by
removal of NEPS and foreign matters and silver is produced which is collected in cans. The
waste in the process is sliver waste cylinder fly, flat strips, roller strips and sweepings.

 COMBING

In combing process cotton fibers are separated by needles and predetermined part of
sharp fibers is removed as waste and sliver is formed with suitable drafting. The fibers are
arranged in parallel format combing is an optional process of manufacturing better quality
and finer counts as yarn. This precedes the drawing and sliver laps process feeding.

 DRAWING

In the drawing frame, sliver is produced by combing a specified number of sliver and
stretching them proportionately, the waste arising in the process is sliver waste and sweeping.

 SIMPLEX

In this process, the thickness of drawing sliver is reduced and sliver is give twist and
wound on the bobbing. The production depends upon the spindle speed and twist per inch,
number of spindles etc. the waste collected in the process is roving ends and sweepings.
  RING FRAME

The final yarn is spun on ring frame by drafting and twisting the rove from simplex.
The draft end twists vary depending upon the count, quality of yarn required. The yarn is
collected by winding on cops.

 CONE WINDING

The yarn from ring frame is wound in cones suitable for market. In this process faults
like thin and thick places are removed by passing through slit cleaner. The auto corner has
facility of electronically cleaning the yarn and splicing instead of knotting in the conventional
cone winder. Saleable hard waste is obtained in this process.

 DOUBLE WINDING

Two yarn threads are wound parallel on a cheese on double winder.

 DOUBLING

The yarn received from double winding is twisted on ring doubling machine and
wound on cops. This yarn is taken to cone winding department for winding on cones for
market.

 PACKING

The yarn is packed in the poly woven bags for the market.

-Loading

The cotton yarn cones will be loaded to very carefully without getting wet and all.

 One cone’s weight will be 1.25Kgs.

 One bag will having of 40 cones and the weight of one bag will be 50Kgs.
 160 bags will be there in one load.
Unloading

The raw cottons will be coming in bail forms weighing from 180Kgs to 200Kgs. The
raw cotton will be coming from Gujarat, Andhra Pradesh etc. The raw cotton will be carried
out carefully out to the godowns and from their each bail will be taken for cotton mixing and
for the production of yarn.

Scheduling

Production department functions around a clock by day and night shifts.

The three shifts are

7:30AM – 3:30PM

3:30PM – 11.30PM

11:30PM – 07:30AM

Shifts constitutes of 8 hours including 1 hour break. So the industry works around
the clock day and night.

Inventory management

The main inventories in the company were raw cotton or cotton bales, spares and loose tools.
There is a chance of damages when the cotton rolls when stored for a long period so they are
carefully stored without getting wet and all.

Material requirement planning [MRP]

As per their strategy they had a steady demand for materials so they stored the materials.
They have introduced new machines and all so the work goes more faster than earlier so
according to that they have ordered and stocked more cotton for the production. They will
collect and store cotton for an advance of one month’s production.
Research & development

R&D Department looks after a specific unit and develops new idea to attain
advantage in the area of that unit. R&D department is under the control of top management
itself. Technical development wing of R&D studies about the new technologies and update
the current technology with most sophisticated technology with take into consideration of the
requirements. At present new and most modern machines are replaced for the old ones.
Mainly the modern machines are from Germany and Lakshmi Mills Coimbatore. Product
development wing of R&D studies about the market and what are all the ways to improve the
products. The will be thoroughly looking for the demand of the yarn under what quality at
present they are producing 60count quality yarn so as per the customers requirement the
count of the yarn will be changed in order to meet the demand.

Total quality management tools, polices

 Supply in time
 Cost effectiveness
 Adapting changes as required to compete in the customer driven market.
 Mentoring employees at all levels in reviewing quality and productivity
related objectives for continual improvement and sustainable growth.

Quality circles

For the quality circle there is a team where they will be monitoring the quality of the
yarn.

The team are

 Maintenance in charge person

 Quality in charge person
 One person from each departments

They will be constantly monitoring and if there is any sort of fault for the quality then
immediate action will be taken quickly.
Auditing & Inspection

There are mainly two types of auditing they are internal auditing and statutory
auditing. The internal auditor audits the accounts, resources and human resource etc. They
will be auditing everything on daily basis. Statutory auditing takes quarterly. There will be
through inspection of the machines and all if there is any problem then suddenly the adequate
measure will be taken and so by that the production continues without any halt. There are
inspections from head office also and it will be a sudden also it will be from K.S.T.C

Avoidance of accidents

Workers in the production department has prone to moving machines has a great risk
of accidents. The workers had given training to handle the machines with safety and to reduce
the accidents. The workers have to wear aprons and masks and shoes as well so by this they
avoid accidents. Accident is the son of carelessness, so care should be taken from the
workers level to avoid the accidents.

Safety measure

The administration very much takes care about the safety of the workers. Fire and safety
measures

 Machinery safety

 Machinery guards

 Safety alarms etc

The mill provides necessary numbers fire-buckets, fire-extinguishers are all placed in
each processing areas. There is an automatic switching system for machines to protect the
workers from the electronic shock hazard. This will automatically switched to off state when
will any short circuit occurs. As a safety for the employees aprons and masks are also given
to them. Apart from all these sufficient notices for safety are displayed in convenient places
in the factory.
Machinery maintenance

Every half an hour interval the workers will be inspecting the machines and they will
be cleaning the waste material which are stuck on to the machines and all. As part of
preventive maintenance they will be putting oil and grease for the machines. There will be
also inspection of the wear and tear parts of the machines as well.

Quality policies

According to the market demand the yarns quality also will be changed at present the
yarn should have 60 count and C.S.P 2400 above. So according to the clients order the
quality of the yarn also will be changed The main quality policies are supply in time, cost
effectiveness, adapting changes as required to compete in the customer driven market,
mentoring employees at all levels in reviewing and productivity related objectives for
continual improvement and sustainable growth.

Quality Control Instruments details:

1. Digital fiber graph (Auto span)

2. Fiber fineness tester (micron ire)
3. Stelometer (Fiber Bundle Strength Tester)
4. Trash Separator.
5. Moisture Meter.
6. Wrap Realer.
7. Wrap Block.
8. Lea Strength & Count Tester (with computer, printer)
9. Digital Electronic balance.

10.Humidifier.

Product standards

According to the customers requirement the standard of the yarn also will be
maintained. There will be inspection of every yarn that they produce for checking of the
required standard. If the yarn doesn’t have the specified minimum standard then, the machine
will be tuned to the specific standard and thus the yarn will be producing according to the
standards.
Benchmarking

Benchmarking is the process of comparing one's business processes and performance

metrics to industry bests and/or best practices from other industries. Dimensions typically
measured are quality, time, and cost. Improvements from learning mean doing things better,
faster, and cheaper typical benchmarking methodology:

1. Identify your problem areas - Because benchmarking can be applied to any business
process or function, a range of research techniques may be required. They include:
informal conversations with customers, employees, or suppliers; exploratory research
techniques such as focus groups; or in-depth marketing research, quantitative
research, surveys, questionnaires, re-engineering analysis, process mapping, quality
control variance reports, or financial ratio analysis. Before embarking on comparison
with other organizations it is essential that you know your own organization's
function, processes; base lining performance provides a point against which
improvement effort can be measured.
2. Identify other industries that have similar processes - For instance if one were
interested in improving hand offs in addiction treatment he/she would try to identify
other fields that also have hand off challenges. These could include air traffic control,
cell phone switching between towers, transfer of patients from surgery to recovery
rooms.
3. Identify organizations that are leaders in these areas - Look for the very best in any
industry and in any country. Consult customers, suppliers, financial analysts, trade
associations, and magazines to determine which companies are worthy of study.
4. Survey companies for measures and practices - Companies target specific business
processes using detailed surveys of measures and practices used to identify business
process alternatives and leading companies. Surveys are typically masked to protect
confidential data by neutral associations and consultants.
5. Visit the "best practice" companies to identify leading edge practices - Companies
typically agree to mutually exchange information beneficial to all parties in a
benchmarking group and share the results within the group.
6. Implement new and improved business practices - Take the leading edge practices and
develop implementation plans which include identification of specific opportunities,
funding the project and selling the ideas to the organization for the purpose of gaining
demonstrated value from the process.
Cost of benchmarking

The three main types of costs in benchmarking are:

 Visit Costs - This includes hotel rooms, travel costs, meals, a token gift, and lost labor
time.
 Time Costs - Members of the benchmarking team will be investing time in
researching problems, finding exceptional companies to study, visits, and
implementation. This will take them away from their regular tasks for part of each day
so additional staff might be required.
 Benchmarking Database Costs - Organizations that institutionalize benchmarking into
their daily procedures find it is useful to create and maintain a database of best
practices and the companies associated with each best practice now.

The cost of benchmarking can substantially be reduced through utilizing the many internet
resources that have sprung up over the last few years. These aim to capture benchmarks and
best practices from organizations, business sectors and countries to make the benchmarking
process much quicker and cheaper.

-Japanese Technologies

5s, abbreviated from the Japanese are simple but effective methods to organize
the workplace.

The 5s are,

 HOUSEKEEPING[SEIRI]: Separate needed items from unneeded items. Keep only

what is immediately necessary item or the shop floor.
 WORKPLACE ORGANIZATION[SEITON] : Organize the workplace so that needed
items can be easily and quickly accessed. A place for everything in its place.
 CLEANUP[SEISON]: Sweeping ,washing, and cleaning everything around working
area immediately.
 CLEANLINESS[SEIKETSU]: keep everything clean for a constant state of readiness.
 DESICIPLINE[SHITSUKE]: Everyone understands, obeys, and practice the rules
when in the plant.
POTENTIAL BENEFITS OF 5S

Implementing 5s methods in the plant would help the company to reduce waste
hidden in the plant, improve the levels of quality and safety, reduce the lead time and cost,
and thus, increase company’s profit.

The potential benefits of 5s can be summarized by 5 English S or PQCDS:

 Sales – increase sales [ market share ].

 Savings – Save costs.
 Safety – Provide a safety working environment.
 Standardization – Standardization the operating procedure.
 Satisfaction – Employees and customers satisfaction.

PQCDS:

P – Increase productivity.

Q – Improve product quality.

C – Reduce manufacturing costs.

D – Ensure on – time delivery.

S – Provide a safety working environment.

-New product development process

According to the change in the market for the yarns count and its properties, the mill
will produce the yarn. When the customer comes and asks for a particular count of yarn
according to the customers need the yarn will be produced.
FINANCE DEPARTMENT
 IV.4.FINANCE DEPARTMENT

The word finance comes from the Latin word ―fins‖. Finance is the art and science of
handling money. It is the management of money. It is the management of laws of money. It is
the management of laws of money through as organization.

Finance function is needed in all types of organizations. Of all business functions,

finance functions are the most important one. Finance function is concerned with the
evaluation of how funds are powered and used.

The definitions of finance may be grouped into following three categories.

First approach

In the words of F.W.Paish ―Finance may be defined as the provision of money at the
time it is wanted. This approach is concerned with procurement or raising of funds and hence
this is a narrow approach‖.

Second approach

According to J.J.Hampton, ―the term finance can be defined as the management of the
flows of money through an organization, whether it will be a corporation, school, bank or
govt. agency. This a road approach.

Third approach

This is the modern approach and is the most acceptable one. According to this
approach, finance function is concerned with the procurement of funds and there effective
utilization it the business. According to the Solomon Ezra, the finance function covers not
only the raising of funds but also their effective utilization in the business. This approach is
related in the business. This approach is related in the business. This approach is related with
the financial decision making ie. The financial manager should consider the alternative uses
and sources f funds. In short, finance function is defined as provision of money at the time
when it needed.
  To check all the vouchers, bills, receipts.
 To draw money from the bank for any cash transactions.
 To pay the amount due to the supplier outstanding and creditors.
 To pay the amount to the tender purchases.
 To check all the register relating to accounts section.
 To prepare and furnish all furnish all return and remitting the sales tax and central
excise and other local taxes and rates.
 Sending of periodical returns and remitting the sales tax and central excise and other
local taxes and rates.
 The accounts department should pay salaries, wages and other monetary benefits to
the workers and staffs.

-Department Chart

GENERAL MANAGER
George

JUNIOR MANAGER

Krishnan Namboodiri

OFFICE STAFF OFFICE STAFF

Rajitha Susmitha
 GENERAL RECORDS OF THE COMPANY

 Daily wages record

 Material requisition book
 Pass book
 Stores record
 Cash book

FOLLOWING BOOKS ARE MAINTAINED IN ACCOUNTS DEPARTMENT

 Daily Journals
 Sales book
 Purchases book
 Ledger
 Trading Account
 Profit & Loss Account
 Balance sheet

OPPURTUNITIES

The scope for Indian textile Industries is widening day-to-day. The share of Indian
textile industries in the international markets is expected to increase manifold in the coming
years.

THREATS

General recessions in the economy have its impact on the textile industry as well. In
order to cope up with the highly competitive and fashion sensitive International markets for
textile efforts to modernize the machineries on a continuous basis should be undertaken
without any hesitation.
Types of asset & liability

ASSETS

 Free hold
 Lease hold
 Building
 Plant & machinery
 Electrical
 Furniture
 Office equipments
 Computers
 Vehicles
 Canteen
 Library

LIABILILITIES

 KSTC current account

 Inter unit dues
1. Term loan from Kottayam textiles
2. Edarikkode textiles
3. Prabhuram mills

Investment

 Investments : 168 Nos. ―B‖ class shares of Rs 100/- per share in Malabar
Spinning & Weaving Employees Multipurpose Co-op. Society Ltd.
 H.O. investment for revival
 Investment by Head office
 Grant from Govt of Kerala Investment for modernization by KSTC
Tax payment

Rates & Taxes: 31556.00

License fee:24473.00

Total: 56029.00

Fringe benefits given to employees

 Company car
 Accommodation or reimbursement of rental charges
 Medical bills reimbursement or free medical care for employee (extending for the
family as well and/ or children)
 Subsidized meals. Employees are given discounted meal coupons at the office
cafeteria or given a fixed allowance for meals of their choice
 Gifts in cash or kind during festivals
 Every employee will be registered in Employee State Insurance Corporation.

Internal Rate of Return for investment

The internal rate of return (IRR) is a rate of return used in capital budgeting to
measure and compare the profitability of investments. It is also called the discounted cash
flow rate of return (DCFROR) or simply the rate of return (ROR). In the context of savings
and loans the IRR is also called the effective interest rate. The term internal refers to the fact
that its calculation does not incorporate environmental factors (e.g., the interest rate or
inflation).The internal rate of return on an investment or project is the annualized effective
compounded return rate or discount rate that makes the net present value of all cash flows
(both positive and negative) from a particular investment equal to zero.
In more specific terms, the IRR of an investment is the interest rate at which the net
present value of costs (negative cash flows) of the investment equal the net present value of
the benefits (positive cash flows) of the investment. Internal rates of return are commonly
used to evaluate the desirability of investments or projects. The higher a project's internal rate
of return, the more desirable it is to undertake the project. Assuming all other factors are
equal among the various projects, the project with the highest IRR would probably be
considered the best and undertaken first.
Net profit & gross profit

At present company is going on loss of rupees 24,57,55,920.25/-

Annual reports

BALANCE SHEET FOR THE YEAR 2008-2009

MALABAR SPINNING AND WEAVING MILLS, CALICUT-29[ UNIT OF KERALA

STATE TEXTILE CORPORATION LTD.]BALANCE SHEET AS AT 31.03.2009

PARTICULARS 31.03.2009 31.03.2008

SHAREHOLDERS FUND
Investment 263720713.94 239369322.44
Reserves & surplus 5147969.28 5147969.28
LOAN FUND
Secured loans 5501718.72 7108035.66
TOTAL 274370401.94 251625327.38

APPLICATION OF FUNDS
Fixed assets
Gross block 38792390.57 38767587.58
Depreciation 20870884.85 21266722.97
Net block 17921505.72 17500864.61
Capital work in progress 28815410.97 20616464.18
Expenditure pending 53051.00 53051.00
allocation
TOTAL 46789967.69 38170379.79
Investments 16800.00 16800.00

Current assets, loans & advances

Inventories 16362333.94 9467959.90
Sundry debtors 409327.70 283465.70
Cash & bank balance 39667.16 137484.58
Loans & advances 18549687.60 11840912.42
Sub-total 353610616.40 21729822.60
Current liabilities and provisions
Current liabilities 46983189.61 38342767.66
Provisions 7063399.79 5557219.00
Sub total 54046589.40 43899986.66
Net current assets 18685573.00 2170164.06
Miscellaneous expenditure to 493287.00 986576.00
the extent not written off or
adjusted
Profit and loss A/C -245755920.25 -234621735.65
TOTAL 274370401.94 251625327.38
SYSTEMS DEPARTMENT
 IV.5. SYSTEMS DEPRTMENT

Artificial intelligence is necessary for development of mankind. Today, the term

information technology has ballooned to encompass many aspects of computing and
technology, and the term is more recognizable than ever before. The information technology
umbrella can be quite large, covering many fields. IT professionals perform a variety of
duties that range from installing applications to designing complex computer networks and
information databases.

-Duties that officials perform in it department include:

Data management, Computer networking, Computer engineering, Database systems

design, Software design, Management of information systems, Systems management or
System administration.

-OBJECTIVES

1. Ensure the protection and security of data.

2. Minimize duplication of effort, services and resources.

3. Eliminate inefficient and costly redundancies.

4. Eliminate non-compatible standards and architectures.

5. Identify obstacles for departments wanting to move computing operations to the

Division of Information Technology and solve it immediately.

-Software configuration

 ESSL[enterprise Software Solutions Lab]

 Microsoft office
 Tally-9

ESSL is used to assist the attendance system. Personal Attendance Monitoring System
(PAMS) is the most modern technology to record the attendance of the employees within the
organizations. Biometric finger initialization technology is adopted by the cotton mills.
Hardware Specification

 eSSL-manufactured Hardware
 Attendance Device
 Access Control Device
 Biometric Option - Fingerprint
 Card Option - Proximity/MIFARE/HID
 Sensor Type: Optical or Silicon Sensor
 User Capacity – 1500-8000 (if only Fingerprint punch)
  User Capacity – 60,000 (if Fingerprint punch Card)
 Transaction Storage - 30,000 – 100,000
 Display – TFT or LCD
 Verification Time – 1 to 2 Second
 Connection Options
 Serial
 Ethernet
 Wireless Ethernet
 GPRS
 Intranet
 Internet

Benefits

Reduce the time required to schedule employees

Do away with timecard preparation, collection, filling and storage

Significantly cut down on payroll processing time

Eliminate unauthorized hours

Eliminate the need to calculate vacation, sick or compensation time accruals

Identify and eliminate time abuses (break, meal, buddy punching, etc.)

Be more productive, efficient and profitable

Restrict unnecessary overtime and other exceptions

Assign resources more effectively and reduce the time needed to schedule employees

Altogether eliminate the need to calculate time cards

Improves employee productivity

 Microsoft office is used for other office related activities.
Tally-9 software is used for keeping the accounts and all

All the accounts are computerized, when we switch over to computerized accounting
for first time. We should create all ledgers and enter opening balance and classify at this
stage. Just enter all the transaction in vouchers, click the journalisation, posting to ledger,
preparation to trail balance, financial statement etc, is done by the computer. The software
tally 9 version is used by the company.

Hardware

 Processor: Intel Pentium 4 and above

 RAM memory: 1GB
 Hard Disk: 160GB
 Processor speed: 3.2 Ghz
 Monitors: HCL 17‖
 All accessories are of by HCL

System analysis & design

System analysis and designing was done by DGM of each units according to the
requirements of each user.

Each user was given a user name and password to protect the computer and all system
from usage of unauthorized persons.

System maintenance

System maintenance was done by Annual Maintenance Contract (AMC). Private

parties are appointed on contract basis for the maintenance of the system, routers, and all
related accessories.

Usually the contract was given to zenith, HCL, eSSL etc. Maintenance is of two
ways; without system replacement and with system replacement. Without system
replacement is done by internally and with system replacement is done by externally.
Features of system

The systems is protected from the attack of viruses using advanced antivirus program.
All systems are interconnected with each other by a server. So it is very easy for the office
staffs and all for entering the data and all.

Pro & cons of the system

Systems has more advantages compared with the disadvantages, the system help to
complete the work in stipulated time with precision. Because of the server all the computers
are inter-connected and so by this the staffs don’t want to rush out from office to office or by
system to systems. The only disadvantages is that it is machine and there is a chance of
problems which result in the loss of data

ADVANTAGES

 Work in stipulated time with precision.

 All the computers are inter-connected

 The staffs don’t want to rush out from office to office or by system to systems.

DISADVANTAGES

 It is machine

 There is a chance of problems which result in the loss of data.

 Virus attacks will destroy datas

 Hacking of datas of the company

Identification of error

Every week there will be the inspection team who will be there for finding out the
errors of the system. If there has been any error occurred then soon they will be taking the
necessary actions to overcome the error.
Error handling methods

If there has been any virus threat or like that, then soon they will scan the system and
remove the virus from the system.

Client server technology

Cotton mills has leased lines of BSNL to facilitate their communications across
internationally. Microsoft windows 2003 operating system is using in the servers. There is
main server at Thiruvananthapuram and each units has their own local servers. Only
administrator can access the servers.

Database administration

Tally9, Microsoft Access are the two databases which is used in the company. The
administrator has the privilege to edit and handle the data in the database.
FINDINGS AND SUGGESTIONS
Findings:

Company is going at a loss of 24,57,55,920.25/- and we can see that the profit that
the company is earning is not even enough to pay the interest of the loans and all that
they have taken.
Malabar Spinning And Weaving Mills is the largest and the biggest cotton yarn
producing mill in whole Kerala.
Unions are always there for fighting there for some reasons and this will create delay
in the production process.
There are power failures or power cuts, there is no other option for power generation
or there is no generator so because of this production process will be interrupted then
and there.
Most of the people working in the mill are too old.
The company mostly concerned about the people and it’s not concentrating upon the
production.
SUGGESTIONS:

Company should have a good generator or other power receiving options.

Government should take more initiative and pay off all the losses that the company
have got.
Company should include some more young people.
Each employee working in the company should know more about how to operate the
machineries and all in the company.
 V. CONCLUSION:-

From the Study of this company I understood the functions and features of the
company. This company is improving their quality, goodwill, market value and they are
giving job opportunity so many people. They are the strength of the company’s growth. In
fact we can see that the company has modernised its machineries and all and it’s the biggest
cotton mill industry in whole Kerala. With all most modern facilities.

The institutional training at Malabar Spinning & Weaving Mills Calicut helped to
have a good knowledge about how a company operates and the consequent focuses relating to
the business activities. In the short span of training the company management provides me a
good exposure to the working and management work out in the detail run. It enhanced about
plants production process in details ,which paved way for rich experience in plant supervision
it also provide with information regards the exports financial and human resources activities
and documentation in the organization ,which was new area entrance for me.

The training has helped to know the various delegation s that is found in the
organization and responds ability each delegates have the training has given a deep sense of
understanding how an organization takes efforts in bringing in product as an effective one
and how it can be good in competing with its competitors.

The organizations growth decides their tireless effort in bringing it up .The expansion
and establishment of the organizations in various places and in various forms denotes their
financial efficiency and capabilities.
 VI. BIBLIOGRAPHY

TEXT BOOKS

 Research Methodology by C.R Kothari

 Human Resource Management by Shashi K. Gupta

 Finance Management by Neethi Gupta

WEBSITES

 www.wekkipedia.com
 VII. APPENDIX
KSTC: Kerala State Textile Corporation

eSSL: enterprise Software Solutions Lab

HCL: Hindustan Computers Ltd