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TABLE OF CONTENTS

S.NO 1. PARTICUARS INTRODUCTION


1.1. ABOUT INPLANT TRAINING 1.2. ABOUT THE INDUSTRY

PAGE NO
1 2-6

2.

COMPANY PROFILE
2.1. ITI LTD PALAKKAD PLANT 2.2. IMPORTANT MILESTONES OF THE PALAKKAD PLANT 2.3. ORGANISATIONAL CHART 2.4. COMPONY AT A GLANCE

7-10 11 12 13 14

3. 4.

RANGE OF PRODECT DEPARTMENT PROFILE


4.1. HUMEN RESOURCE 4.2. PLANNING 4.3. METERIAL PLANNING 4.4. PRODUCTION PLANNING 4.5. STORE] 4.6. SHIPPING 4.7. DOCUMENTATION 4.8. COMMERCIAL 4.9. INDUSTRIAL ENGINEERING 4.10.SALES&BILLING 4.11.PURCHASE 4.12.MARKETING 4.13.QUALITY ASSURENCE 4.14.PRODUCTION 4.15.VIGILANCE 4.16.INTERNAL AUDIT 4.17.FINANCE

16-19 20 21 22-23 24-25 26 27 28 29-31 32-33 34 35 36 37-40 41-50 51-56 57-63

5. 6.

CONCLUSION BIBLIOGRAPHY

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1. INTRODUCTION
1.1. ABOUT INPLANT TRAINING
In Plant Training will provide an industrial exposure to the students as well as to develop their career in the high tech industrial requirements. Reputed companies are providing inplant training to Students. Here students are initially get counseled in order to emerge out their interest in various streams and what are all the basic concepts they know on that domain. After the successful completion of studies students has to face this competitive world with this knowledge to face many problems and to find the right solutions which is to be solved in the minimum duration of time. The inplant training is get totally different from the class environments.

Following are the objectives of In-plant training:

To get an Industrial exposure.

To be aware of the happening in a particular industry.

To achieve knowledge about different sectors in market for making choice as to which go for.

To learn functioning and operations of different departments in an organization.

To get knowledge about the working culture of the organization.

To have knowledge about the huge management practices and get the practical knowledge of what we have studied.

1.2. INDUSTRY PROFILE


Telecommunications Industry Telecommunications industry deals with the activities and services of electronic systems for transmitting messages through cables, telephone, radio or television.

Components and factors responsible behind the growth of telecommunications industry Two major factors responsible for the growth of telecommunications industry are use of modern technology and market competition. One of the products of modern technologies is optical fibers, which are being used as a medium of data transmission instead of using coaxial or twisted pair cables. Optical fibers can carry a high volume of data and are easier to maintain and install. Uses of communication satellites make this telecommunications industry a booming industry. The use of mobile network has a crucial role behind the growth of an improved telecommunications industry. Leading companies are showing their interest to invest in this telecommunications industry. Telecommunications industry is going to be a digitized one. Use of ISDN (Inter Services Digital Network) makes this telecommunication industry a total digitalized system and eventually enhanced the speed and quality of digital communication. The introduction of these advanced technologies makes the telecommunications industry a competitive one, where a number of multinational companies have shown their interest to invest in this industry and consequently the prices are reduced, the quality is also improved. During the period of 1990, the telecommunication industry showed a speedy growth in terms of investment and eventually increased the competition. The competition between the companies led to the decline of revenues.

Employment opportunities in telecommunications industry Telecommunication industry has created immense employment opportunities. Most of the employees in this industry are engaged in large establishments, although there are some small establishments, where a large number of small contractors are involved. Fifty five percent of all workers are engaged in office and administrative support occupations. The other occupations of this industry relate to installation, maintenance, and repair.

World Telecom Industry World telecom industry is an uprising industry, proceeding towards a goal of achieving two third of the world's telecom connections. Over the past few years information and communications technology has changed in a dramatic manner and as a result of that world telecom industry is going to be a booming industry. Substantial economic growth and mounting population enable the rapid growth of this industry.
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Research works associated with world telecommunication industry A number of research works are being carried out all over the world to improve the quality and speed of transmission. Research works are also done on the basis of the users' needs. The objective of the research work is to provide quality and affordable service to the consumers.

Market potentiality of world telecommunication industry The world telecommunications market is expected to rise at an 11 percent compound annual growth rate at the end of year 2010. The leading telecom companies like AT&T, Vodafone, Verizon, SBC Communications, Bell South, and Qwest Communications are trying to take the advantage of this growth. These companies are working on telecommunication fields like broadband technologies, EDGE (Enhanced Data rates for Global Evolution) technologies; LAN-WAN inter networking, optical networking, and voice over Internet protocol, wireless data serviceetc.

Economical aspect of telecommunication industry World telecom industry is taking a crucial part of world economy. The total revenue earned from this industry is 3 percent of the gross world products and is aiming at attaining more revenues. One statistical report reveals that approximately 16.9% of the world population has access to the Internet.

Present market scenario of world telecom industry Over the last couple of years, world telecommunication industry has been consolidating by allowing private organizations the opportunities to run their businesses with this industry. The Government monopolies are now being privatized and consequently competition is developing. Among all, the domestic and small business markets are the hardest.

Telecom Industry in India Telecom industry in India has a big market potentiality and is a fast growing sector. Government of India is eager to reconstitute this telecom industry by enacting effective policies for more investments from foreign companies, which results in a very competitive and deregulated market in the world.

Policies of telecom industry in India Government of India implemented the unified access licensing regime, which enables basic and cellular mobile service to use any modern technology. In 1997, Telecom Regulatory Authority of India (TRAI) was formed to facilitate the growth of the telecom sector in India.

Major services and market potentiality of Telecom industry in India Telecommunication sector in India is primarily subdivided into two segments, which are Fixed Service Provider (FSPs) and Cellular Services. Telecom industry in India constitutes some essential telecom services like telephone, radio, television and Internet. Telecom industry in India is specifically emphasizing on latest technologies like GSM (Global System for Mobile Communications), CDMA (Code Division Multiple Access), PMRTS (Public Mobile RadioTrunking Services), Fixed Line and WLL (Wireless Local Loop). India has a prospering market specifically in GSM mobile service and the number of subscribers is growing very fast.

Economic perspective of telecom industry in India Telecom industry in India has a major role in Indian economy. The Indian government is also enforcing some effective telecom policies and regulations for the infrastructural growth of this industry. Indian telecom market provides a tele-density of 8.5 percent as registered in the year 2004. A number of leading multinational telecommunication companies are approaching and showing their interest to invest for the telecom industry in India. Telecommunication industry of India ranked sixth among all the telecommunication sectors in the world. In the year 2004, the total numbers of telephone subscriptions were US$93.2.

Leading telecommunication service providers of telecom industry in India

Bharat Sanchar Nigam Limited, Mahanagar Telephone Nigam Limited (MTNL), Videsh Sanchar Nigam Limited (VSNL), Bharti Airtel, Tata Teleservices, SIFY Ltd. are the major telecommunications service providers in India.

The stupendous growth of the Telecommunication companies in India over the last fifteen years can be attributed to the liberal government of India, economic policy. The economic renaissance affected in the early 1990s brought around a paradigm shift on the overall business scenario of India. The telecommunication companies in India went through a huge make-over during the implementation of the open-market policy of India. The erstwhile closed market policy was replaced by a more liberal form of economic policy. A whole new form of Indian Telecommunication Policy was drafted to compliment the change effected in the economic policy of India. The amendment affected the new telecommunication policy of India made huge changes with respect to investments and entry of Foreign Direct Investments (FDI) and Foreign Institution Investors (FII) respectively, into the virgin Indian telecommunication market. This resulted entry of private, domestic and foreign telecommunication companies in India The economic contribution made by these newly formed telecommunication companies of India is really mentioned worthy and this industry witnessed highest growth after the Indian Information Technology industry. The robust growth of Indian economy after the economic liberalization in the 1990s induced massive change in the telecom policy and new draft was framed and implemented by the 'Telecom Regulatory Authority of India' (TRAI) and Department of Telecommunication' (DOT), under the Ministry of Telecommunication government of India. The main aim of these telecommunication companies in India is to provide basic telephony services to each and every Indian. With the advent of private telecommunication companies in India, the industry witnessed introduction of mobile telephones into the Indian market and it became popular amongst the Indian masses in no time. Today two types of mobile phone service providers operates in the Indian market, like the following

Global System for Mobile Communications (GSM)

Code Division Multiple Access (CDMA)The main binding objective for all the telecommunication companies operating in India are as follows -

To facilitate telecommunication for all

Ensuring quick availability of telephone connectivity

Achieve universal service access at affordable price covering all Indian villages, as early as possible

Providing world class telecommunication services

Solving consumer complaints, resolve disputes, and special attention to be given to public interface
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To provide widest possible range of services at reasonable prices

To emerges as a major manufacturing base and major exporter of telecommunication equipment

To protect the defense and security interests of the country Three types of service providers exist in the Indian telecommunication sector, like the following

State owned companies like - Bharat Sanchar Nigam Ltd, Videsh Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd

Private Indian owned companies like - Reliance Infocomm and Tata Teleservices.

Foreign invested companies like - Hutchison-Essar, Bharti Tele-Ventures, Escotel, Idea Cellular, BPL Mobile, Spice Communications etc

2. COMPANY PROFILE
ITI LIMITED, PALAKKAD
ITI LIMITED, PALAKKAD was established in the year 1976, as the Nations first Electronic Switching Systems

Production Unit. The Unit is situated in the Industrial corridors of Coimbatore and Kochi (Kanjikode) in the NH-47 and only 10 Km from Palakkad Town.

The Unit went into production in 1976 with a meager overall investment of Rs.26 Lakhs for producing 10,500 lines of small electronic exchanges of 10 to 50 Lines capacity. In 1980, the Unit was expanded with an investment of Rs.98 lakhs, to produce 60,000 lines of medium size electronic exchanges of 200 lines capacity. The product range at that stage included sophisticated microprocessor controlled Exchanges for Civilian and Defense use and Subscriber Line Routines used for maintaining the telephone lines.

In 1985, it was decided to establish manufacturing facilities for Digital Trunk Automatic Exchanges, with an investment of Rs.67.57 Crores. The planned capacity was to manufacture30,000 circuits of DTAX equipment, 50,000 lines of ILT and 50,000 lines of other exchanges totaling 1,60,000

lines apart from PCB manufacturing facilities. With some modifications within the overall investment, facilities were established to manufacture EIOB local exchanges also, thereby increasing the overall capacity to 2, 60,000 lines.

Quality of the products has been consistently good. The uncompromising attitude to Quality has fetched ITI Ltd., Palakkad, and the coveted Self-Certification Scheme for DTAX. Quality system in the unit was audited and certified to ISO-9002 QMS Standard inSept.93. The Unit has emerged successful through the surveillance audits conducted by IRQSand was reassessed and certified as per ISO9002:1994 version in 1996 and in 1999. ISO9001:2000 Edition Certifications was awarded to ITI Palakkad Unit during Sept.2002. The surveillance audit for QMS and the Certification audit for SMART card were successfully completed during Sept 2003 and ISO 9001:2000 edition Certification was awarded to ITIPalakkad unit for Smart card manufacturing during this audit. ISO 9001:2000 Edition 2nd Surveillance audit was successfully completed during September 2005 and subsequently Surveillance audit was successfully completed during September 2006

.Environmental Management System in Palakkad unit was audited by IRQS and certified to ISO 14001:1996 Standard in January 2005 and upgraded to 14001:2004 Edition in April2006.Subsequently Surveillance audit was conducted successfully during February 2007.

The unit is also engaged in the manufacture of OCB 283 switching system, in technical collaboration with ALCATEL-CIT. Total production capacity of the unit is ONE MILLION lines as per annum.

Over these years, the Unit has grown to become one of the World Class Manufacturing Plants, with the state-ofthe-art FUJI SMT Assembly Line, PCB Plant with a capacity of 10,000Sq. Meters of PCBs per annum. (Double sided equivalent).

Based on the consistent quality of the product and service, ITI Ltd, Palakkad is certified under Approved Inspection Scheme for supplying OCB 283 Core equipment to BSNL/MTNLwith effect from 23/06/99.

ITI Palakkad Unit has entered into the new business areas of Information Technology. Company has Introduced new products in order to exploit the business opportunities of ITSMART Card Manufacturing is started in 2001 in Palakkad Unit in collaboration with IncardItaly and manufacturing of SMART cards in collaboration with G&D Germany started from2005:Recently: in July 2007, manufacturing of SMART cards in collaboration with M/s Watch Data started. The unit is gearing towards the Approved Inspection Scheme for SIM Card Assembly.

ITI Palakkad has started the production of Multinational ID Cards for RGI during March-2007.

In order to meet the emerging needs of the customers as well as to develop cutting edge capabilities ITI has select strategic alliance with leading companies from around the world. The strategic alliance with M/s. Teklec Inc., USA for SSTP and collaboration with M/s. Tellabs, Finland are two backbone projects of ITI Palakkad.

Managed Leased Line Network is an integrated fully managed, multi-service digital network platform through which service provider can offer wide range of services at an optimal cost of Business subscribers. BSNL and MTNL are the two major customers. MLLN and its applications are beneficial to large sectors like banking, financial institutions, Stock Markets, News Paper Industry Broadcasting houses and Internet service providers etc.

MANUFACTURING FACILITY

ITI Limited, Palakkad, has a highly productive Plant equipped with modern facilities for Surface Mounted Devices (SMD) assembly and automated testing to ensure zero defect product and Printed Circuit Board (PCB) manufacture of various layer counts. They also have state-of-the art SIM Card Manufacturing and Personalization Centre, Modern Calibration Lab, Cable Assembly and Harnessing Equipments, PC based Microprocessor Development Systems and the latest Test Equipments. They are fully networked over a Local Area Network with more than 200 nodes connecting all the Departments along with VSAT connectivity with all the other manufacturing Plants.

TESTING & QA

The facility has highly sophisticated tools and programmes to test the functionality of the card, rack, cables and simulation activity based on the exact site installation layout. The Manufacturing Automation Protocol (MAP) Test, Integration Test and Climatic Test ensure a failure rate less than 2 %. The facility has been approved by BSNL with a Self Certification stature.

TURNKEY SOLUTIONS

Supply, Installation & Commissioning the Company have an exclusive Product Support Centre and Customer Service Welcome Centre equipped with skilled technical personal and the latest test equipments, toensure 24x7 support services.

Highlights

SMD Technology, PCB Assembly

Installation, Commissioning & Technical Support of exchanges

Nationwide Annual Maintenance Contract (AMC) for OCB

Complete turnkey implementation of Nationwide Managed Leased Line Network (MLLN) in collaboration with Tellabs

AMC for all the new products

Installation and commissioning of all the new solutions deployed like VoIP, MLLN, SSTP, IPTAX etc.

Equipment Calibration

SERVICES

ITI has been included in the CPSU Consortium for the ongoing National Population Register program of Government of India in which the data would contain personal identity information like name, address and other family details of every individual above the age of 15 years.

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2.2. IMPORTANT MILESTONES OF THE PALAKKAD PLANT Jan 1976 Inauguration of ITI Ltd, Palakkad by Dr. Shankar Dayal Sharma. Nov1982 Corner stone laid for phase-2 expansion by Sri.C.S.S Rao, CMD Mar1986 First batch of Switel Electronic Exchanges delivered to Indian Army. Dec1986 Corner stone laid for Phase-3 expansion Jan1987 The first E10B TAX (2K) delivered to Ernakulum Oct1987 A Telecommunication System designed by ITI for Neyveli Lignite Corporation Oct1988 First ILT manufacturered at Palakkad delivered to Minicoy Dec1987 The PCB Plant inaugurated Mar1990 Approved inspection scheme (self certification) for DTAX Sep1993 ISO 9002 Accreditation (1987 version) by IRQS. Mar1995 First E10B Local Exchange (5KL) delivered to Golconda Sep1993 ISO 9002 Accreditation (1987 version) by IRQS. Mar1995 First OCB-283 exchange delivered. Sep1995 First OCB TAX Pune 18 KC manufactured delivered to DOT. Oct1996 ISO 9002 (1994 version) Accreditation by IRQS. Oct 2003 ISO 9001 (2000 version) Accreditation by IRQS. Jun 2004 Development of SIM OS for 16K. Feb 2005 ISO 14001 Accreditation (EMS) by IRQS. Aug2005 Sri Y.K Pandey, CMD ITI Limited launched Web based Customer Relationship Management System for OCB AM

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2.4. COMPONY AT A GLANCE LAND : 26 Acres

SALES TURNOVER

CANTEEN FACILITY

: AVAILABLE

ISO/QS

: An ISO 9001:2008& ISO 14001:2004 Certified Plant

PRODUCT

: Large Digital Switching Exchanges-OCB 283. VRLA Battery (80 AH to 2000 AH). Smart Cards. VOIP Products. Managed Leased Line Networks(MLLN) Multi-layer PCBs. SSTP

NO. OF EMPLOYEES

: MORE THAN 500 OFFICERS-299 NON-OFFICERS-264

STAFFS

: WELL TRAINED TECHNICAL AND NON- TECHNICAL

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3. RANGE OF PRODUCTS
Large Digital Switches and Digital Trunk Exchanges (OCB)

Double Sided & Multi Layer Printed Circuit Boards (PCB)

Assembly of state-of the-art Surface Mounted Devices (SMD)

SIM Cards / Smart Cards / National ID Cards

New Generation Network (NGN) Equipment

Network Management Systems(NMS)

Managed Leased Line Network (MLLN)

Voice over Internet Protocol (VoIP)

Virtual Private Network (VPN)

Stand-alone Signaling Transfer Point (SSTP) Equipment

Integrated Manufacturing Management System (IMMS) and other customized software

Commercial department acts like oil in the machine for the organization. It has to be performing various activities related to the money required for running the business successfully; also it has to take various important decisions which are mostly irreversible in nature. The commercial dept. of company is totally handled by the higher authority of the corporate. Basically it includes different financial concept like: Excise duty, service Tax, dispatching of products. Commercial department is very keen and sensitive department because it is concerned with the each and every department. In commercial dept. the transactions related to the co. are done. When the orders are given by the customers, the process of transaction starts. There is some documentation which is very important to do in the commercial dept. It deals with the accounts, dispatching, indirect taxes etc.

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4. DEPARTMENT PROFILE
4.1. HUMAN RESORCE

4.2.

PLANNING

4.3.

METERIAL PLANNING

4.4.

PRODUCTION PLANNING

4.5.

STORE

4.6.

SHIPPING

4.7.

DOCUMENTATION

4.8.

COMMERCIAL

4.9.

INDUSTRIAL ENGINEERING

4.10.

SALES&BILLING

4.11.

PURCHESE

4.12.

MARKETING

4.13.

QUALITY ASSURANCE

4.14.

PRODUCTION

4.15.

VIGILANCE

4.16.

INTERNAL AUDIT

4.17.

FINANCE

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4.1 HUMAN RESORSE DEPARTMENT


The Human Resources department, working with people from other departments, is responsible for the people in the organization. This often includes: The Human Resources Department is responsible for managing human resources of an organisation the employees. The Human Resources Department focuses on meeting the needs of all employees and ensuring that the work environment is a healthy and safe one at all times. In order to understand the purpose of the Human Resources function, lets look at the different t asks that are carried out by the Human Resources Department.

Hiring (including recruiting candidates, the interview process, negotiations, and signing contracts) Employee benefits Training and continued professional development Annual appraisals (in many companies) Promotions and raises Warnings and layoffs The HR department works with the employees' managers for some of these tasks.

Objectives of H.R.D.:The H.R.D. has following objectives: To facilitate realization of lean and effective organization. Create businesses and strategic thinking. Build managerial and technical competencies. Promote a culture of achievement and excellence. Improve quality of work life in organizations. Encourage empowerment of team and individuals. Improve organizational learning. Optimize resources utilization and create atmosphere of cost consciousness. Create financial edge to finance in purchase of the customers.

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Human Resources Department

MEDICAL CENTER

CANTEEN

SERVICE

PRO

EMPLOYEE DEVELOPMENT

LEGEL COMPLAINS

ADMINISTRATION

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The Role of HR Department

1. Recruitment The Human Resources Department is responsible for recruiting potential candidates for the job. In order to do this effectively, there are a number of steps involved in the recruitment process: 1. Preparing a JOB DESCRIPTION this clearly describes the nature of the job and what it involves. 2. Preparing a PERSON SPECIFICATION this clearly describes the type of person the organisation believes will best suit the job. 3. Advertising the vacancy it is important that the Human Resources team identifies the most suitable place to advertise e.g. Local newspaper; Internet; radio etc. 4. Determining if the job should be advertised INTERNALLY or EXTERNALLY. Internal recruitment means that an existing employee is given the job (promoted) whereas external recruitment means that the successful candidate comes from out with the organisation.

2. Selection The Human Resources Department is responsible for selecting the best candidate for the job. In order to do this effectively, there are a number of steps involved in the selection process: 1. Gather all the applications forms received and identify the most suitable candidates. 2. Arrange interviews for the selected candidates. Normally, there are at least 2 rounds of interviews: the first one is referred to as the LONG LEAT usually consisting of 6 8 candidates. The most successful 2 or 3 candidates would then be invited back for a second interview referred to as the SHORT LEAT. 3. Once references have been consulted, the successful candidate will be informed of their success and be offered the job. 4. It is then important for all the unsuccessful candidates to be thanked for their interest in the organisation and provided with feedback as to why they didnt get the job.

3. Calculating Wages The Human Resources Department is responsible for ensuring that each employee receives the correct amount of pay. The rate of pay depends upon the amount of hours the employee has worked: 1. FLAT RATES 1. The employee is paid by an hourly rate. For example, 4.50 an hour. 2. TIME RATES 1. The employee is paid depending upon the length of time he/she takes to complete the job.
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3. OVERTIME RATES 1. For every extra hour of overtime the employee works, he/she receives a higher hourly rate. 4. PIECE RATES 1. Depending upon how much the employee produces, will determine how much he/she gets paid. 4. Training The Human Resources Department is responsible for ensuring that each employee receives appropriate training to ensure that they know how to do their job and that their skills are developed regularly. Training courses are provided either in-house or at external venues whereby more specialist staff can train the employees. If the Human Resources team ensure that the workforce is receiving up-to-date training opportunities this will mean that the employees will be motivated and keen to develop. This will result in a happier and more productive workforce.

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4.2

PLANNING DEPARTMENT

Proper planning is very vital and crucial to the inception, maintenance and sustenance of the business. The incorporator of the business needs to plan before venturing into the business. Once the business has started, the management needs to plan out its strategies for operations, production, marketing, investments and growth.

Planning helps integrate and connect all the departments in the organization. The departments are the production, marketing, systems, HR, finance and accounting departments. By this mechanism, the organization is able to realize the organization's goals and objectives. All the departments thus work together and in tune with another.

PLANING

MATERIAL PLANING

PRODECTION PLANING

STORS

SHIPPING

DOCUMENTATION

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4.3

METERIAL PLANING

Materials management plans and designs for the delivery, distribution, storage, collection, and removal of occupant-generated streams of materials and services. It is usually an additional service that is offered as part of a campus planning process or a building design project. It is most beneficial for university, health care, and corporate environments. Materials management looks at the planning and design considerations needed to support the efficient delivery and removal of goods and services that support occupant activity. The streams of occupantgenerated materials and activity include mail, office supplies, lab supplies, food, special deliveries, custodial services, building supplies, waste and recycling, and service calls. A materials management plan may include planning guidelines or full design for the following:

Truck delivery and service vehicle routes, to reduce vehicle / pedestrian conflict Loading docks and delivery points, to increase accommodation and reduce queuing and vehicle idling Service equipment and utility infrastructure relocation or concealment, to improve aesthetics and realize landscaping goals

Regulatory and operation planning

Benefits
The effective materials management plan builds from and enhances an institutional master plan by filling in the gaps and producing an environmentally responsible and efficient outcome. An institutional campus, office, or housing complex can expect a myriad of benefits from an effective materials management plan. For starters, there are long-term cost savings, as consolidating, reconfiguring, and better managing a campus core infrastructure reduces annual operating costs. An institutional campus, office, or housing complex will also get the highest and best use out of campus real estate. An effective materials management plan also means a more holistic approach to managing vehicle use and emissions, solid waste, hazardous waste, recycling, and utility services. As a result, this means a greener, more sustainable environment and a manifestation of the many demands today for institutions to become more environmentally friendly. In fact, thanks to such environmental advantages, creative materials management plans may qualify for LEED Innovation in Design credits. And finally, an effective materials management plan can improve aesthetics. Removing unsafe and unsightly conditions, placing core services out of sight, and creating a more pedestrian-friendly environment will improve the visual and physical sense of place for those who live and work there.

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4.4

PRODUCTION PLANING

It should be obvious that there is no single pattern for the organization of the production planning and control activity. In many small plants the routing, loading, and scheduling functions may well be included in the duties of the operating line; the shop manager, superintended, and foremen. But it is difficult to combine day-to-day work with adequate planning, and as a result it is often more feasible to break away the production planning and control functions and assign them to qualified specialists. These groups should be organized as staff sections normally reporting to the top manufacturing executive. Centralized Production Planning and Control Centralization or decentralization of duties of the production control staff depends upon the design of the production planning and control system. In a completely centralized setup, determination of shipping promises; analysis of sales, stock, and shop orders; preparation of routes, load charts, and schedule charts; and dispatching of work to the shop complete with job tickets and all other necessary paper would be accomplished by a central production planning and control unit. In addition, as work is completed, a careful analysis of the actual performance would be made, and if corrective action were required, it would be initiated by this group.

Relation to Other Functions Good relationships with all the other functions in the enterprise are essential to effective production planning and control. Full cooperation with the marketing group is necessary, particularly in view of the importance of market conditions and the goodwill of customers. Both product engineering and process engineering must keep production planning and control informed as to their plans to avoid the manufacture of goods either to incorrect specifications or by an improper method. Measurement of Effectiveness In determining the effectiveness of a production planning and control system, there are quite a few problems. The key criterion might well be whether or not shipping promises are being kept the percentage of the order shipped on time. This, however, would not be a true criterion if Excessive overtime of expediting costs were involved in getting any of these orders shipped. The cost of the control system in relation to the value of goods shipped is another possibility. Again, however, this may not be sound: if markets slump, a bad ratio will develop. Many good Production planning and control systems have been discontinued because of high costs under these conditions- and have never revived after business picket up.

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In a study of benefits and costs of computerized production planning and control systems, Schroeder et al. list the following performance criteria by which production planning and control

Systems might be judged: 1. Inventory turnover 2. Delivery lead time 3. Percent of time meeting delivery promises 4. Percent of orders requiring splits because of unavailable material. 5. Number of expeditors 6. Average unit cost.

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4.5

STORE

Store keeping is an important function of material management. It is a primarily service function in which the store keeping acts as custodian of all the items kept in the store. Store is the connecting link between the shops as work place and the production control department.

STORE FUNCTION: RECIVE STORE ISSUE

RECIVE

Only QA passed Items are accepted in the store

STORE

Setting up different locations Hangers Racks Shelves Bins

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ISSUE

Receive a valid transaction document Enter in the LAN system Note transaction sequence number Issue the item Update bin card Make entry in relevant control requesters.

STRATEGY FOR FIXING LOCATION Size/weight of the item Frequency of usage Nature of the item Shelf life of the item Volume of the item

TRANSACTION DOCUMENT FOR RECIEPT

IGA DELIVERY TICKET SRN

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4.6

SHIPPING

On receipt of the Bill of Lading Request the shipping section will, as necessary, prepare, and weigh items; select appropriate mode of transportation based on size of shipment and requested delivery date; make arrangements with the carrier for pick-up of shipment; issue Government Bill of Lading and related documents that may be needed; provide the requesting organization with a copy of bill of lading, including routing and estimated cost; provide assistance when needed in preparing documentation relating to loss and/or damage claims. Packing: The shipping section, upon request and as work load permits, will perform packing using containers provided by the shipping organization or standard boxes and packing material stocked by the shipping section. Specialized packing and crating will be the responsibility of the requesting organization or may be provided by the shipping section through a contractor with charges paid by the requesting organization.

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4.7

DOCUMENTATION

Effective documentation offers opportunities for improving productivity in the workplace. Effective documentation makes information easy to find, use and understand when organized in a logical format.

It can be of particular use to:


management and employees contractors regulators with auditing powers New staff/contractors other building consent authorities when considering shared service arrangements. Documentation is not leisure reading; it is used to inform and answer questions or to solve problems. All (organizations name's) building consent authority processes and procedures should be created using the organizations document template. This template may contain the following.

Document title Responsibility for process maintenance Document control information (i.e., date, version, etc.) Table of contents

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4.8

COMMERCIAL DEPARTMENT

Commercial department acts like oil in the machine for the organization. It has to be performing various activities related to the money required for running the business successfully; also it has to take various important decisions which are mostly irreversible in nature. The commercial dept. of company is totally handled by the higher authority of the corporate. Basically it includes different financial concept like: Excise duty, service Tax, dispatching of products .Commercial department is very keen and sensitive department because it is concerned with the each and every department. In commercial dept. the transactions related to the co. are done. When the orders are given by the customers, the process of transaction starts. There is some documentation which is very important to do in the commercial dept.

COMMERCIAL DEPARTMENT

INDUSTRIAL EENGINEERING

SALES AND BILLING

PURCHASE

CENTRAL EXICE

DEPARTMENTS:

IED

SALES&BILLING

PURCHASE

CENTRAL EXICE

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4.9

INDUSTRIAL ENGINEERING DEPARTMENT

Industrial engineering is a branch of engineering dealing with the optimization of complex processes or systems. It is concerned with the development, improvement, implementation and evaluation of integrated systems of people, money, knowledge, information, equipment, energy, materials, analysis and synthesis, as well as the mathematical, physical and social sciences together with the principles and methods of engineering design to specify, predict, and evaluate the results to be obtained from such systems or processes. Its underlying concepts overlap considerably with certain business-oriented disciplines such as operations management, but the engineering side tends to emphasize extensive mathematical proficiency and usage of quantitative methods. While the term originally applied to manufacturing, the use of "industrial" in "industrial engineering" can be somewhat misleading, since it has grown to encompass any methodical or quantitative approach to optimizing how a process, system, or organization operates. Some engineering universities and educational agencies around the world have changed the term "industrial" to broader terms such as "production" or "systems", leading to the typical extensions noted above. In fact, the primary U.S. professional organization for Industrial Engineers, the Institute of Industrial Engineers (IIE) has been considering changing its name to something broader (such as the Institute of Industrial & Systems Engineers), although the latest vote among membership deemed this unnecessary for the time being. The various topics of concern to industrial chain engineers include management science, financial

engineering, engineering

management, supply

management, process

engineering, operations

research, systems engineering, ergonomics / safety engineering, cost and value engineering, quality engineering, facilities planning, and the engineering design process. Traditionally, a major aspect of industrial engineering was planning the layouts of factories and designing assembly lines and other manufacturing paradigms. And now, in so-called lean manufacturing systems, industrial engineers work to eliminate wastes of time, money, materials, energy, and other resources. Examples of where industrial engineering might be used include designing an assembly workstation, strategizing for various operational logistics, consulting as an efficiency expert, developing a new financial algorithm or loan system for a bank, streamlining operation and emergency room location or usage in a hospital, planning complex distribution schemes for materials or products (referred to as Supply Chain Management), and shortening lines (or queues) at a bank, hospital, or a theme park. Industrial engineers typically use computer simulation (especially discrete event simulation), along with extensive mathematical tools and modeling and computational methods for system analysis, evaluation, and optimization.

29

IED FUNCTIONS:

Work Study i) Methods Study ii) Systems Study and Improvement iii) Job Standards and Work Norms Development iv) Optimal Crew Sizes determination v) Development of PERT Charts for various tasks (Maintenance, Erection, District Preparation etc)

Manpower Wage Cost constitutes major component of Total Production Cost. Hence to contain the Cost continuous monitoring of the Manpower Resources is given top priority by the Company right from the beginning for Optimal Utilization of Manpower.

** **

Manpower Assessment

Manpower Planning

**

Skill Sets Requirement

**

Redeployment

**

Transfers

**

Promotions

**

Performance Monitoring

**

Identifying surplus Manpower and introduction of VR

Advance Planning of Manpower of various skills


30

Need for IEs in changing Scenario Liberalization, Privatization & Globalization is the order of the day and Coal sector is no exception. Improvement of Productivity and improvement of quality and reduction of Cost are the saviors of Coal Industry. Industrial Engineers role in reducing/containing production cost by improving Productivity is more relevant now to keep the company stay competitive and progress further. The Reports/Recommendations of IED are not always palatable to all. Hence requires consistent support from Top Management.

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4.10

SALES & BILLING DEPARTMENT

The Sales Department is responsible for making sure that the customer is happy. Employees in the Sales Department are responsible for building a positive relationship with the customer. In order to understand the purpose of the Sales function, lets look at the different tasks that are carried out by the Sales Department.

32

INVOICE/BILL NO:

DATE:

KANJIKKODE WEST(PO),PALAKKAD-678623,KERALA,INDIA
PHONE:04912566010,(4 LINES),2567575(DIRECT),FAX:0491-2566009 Product/Project:

PALAKKAD

Email:sales_pkd@itiltd.co.in Website : www.itiltd_india.com (An ISO 9001:2008 & ISO 14001:2004 Certified Plant) Price Status:

Excise Range: I-C Mettupalayam Street, Palakkad, Excise Division I, Mettupalayam Street, Palakkad. Excise Commissionerate: Kozhikode Invoice issued under Central Excise rule no.11,Pre-Authentication Exempted vide TN79/98 dt 17.08.98

ECCNO SERVICE TAX REG NO PAN NO CST NO

Tariff Heading Paying Authority

KVAT TIN NO

Circle code:

Consignee:

HOA:

Tender Code : Tender Ref: APO Ref: PO Ref: Site Name: Sl. No. Code & Description Date: Duty % Qty. Rate Value Date: APO Code PO Code Wk Ord No : : :

Note:

Date & Time of Preparation: Date & Time of Removal: Packing Case Number: GC Number &Date Sl. No:

Grant Total in words Total ED in words

: :

Total Ser. Tax in words: For ITI LIMITTED Palakkad Pre-Receipted Bill Passed for Payment Received Payment

Under Rupees

(AUTHORISED SIGNATORY) AAO / AO PAO / AO

Certified that particulars given above are true and correct the amount indicated is provisional as the price is note final. The amount indicated represents the price actually charged and there is no flow of additional consideration directly or indirectly from the buyer.

BILL TYPE

INVOICE / BILL NUMBER

DATE:

Registered & corporate office: ITI Bavan, Dooravani Nagar, Bangalorr-560016; Production Units: Bangalore, Naini, Rae Bareli, Mankapur, Palakkad, And Srinagar

33

4.11

PURCHASE DEPARTMENT

The Purchase department of ITI LTD. Plays a very important role, because purchasing has its effect on every vital factor concerning the manufacture, quality, cost, efficiency, and prompt delivery of goods to customers. Its function is to procure materials, supplies, services, machines and tools at the most favorable terms consistent with maintaining the desired standard of quality. The main function of the purchasing department is firstly register suppliers and secondly placing the purchase order.

Registration of suppliers: The suppliers are sent the registration form The respective buyers are identified Scrutinize the information provided by the supplier Arrange for a visit by concerned personnel if necessary Include the name of approved suppliers in the list of Suppliers.

Functions of purchase dept.: Maintains relationship between co. and vendor It works on vendor evaluation Helps in finalization of price of products and cost reduction Supports to custom clearance# helps in rates amendment process Executives of the dept. go for vendor visit, prepare contract letters with its vendors

34

4.12

MARKETING DEPARTMENT

Marketing has its origins in the fact that man is a creature of needs and wants. Needs and want create a state of discomfort in persons and they tend to get object those needs and wants. The size of the market depends upon the number of persons who have both: 1) An interest in the product and 2) are willing to offer something in exchange of products

Functions of marketing Department:-

A. Marketing

Product management Product promotion Market Intelligence

B. Sales co-ordination

Price conformation Sales statistics Co-ordination with regions for sales & execution

C. After Sales service

Complaint Registration Co-ordination with QA for site commissioning support

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4.13

QUALITY ASSURANCE DEPARTMENT

Quality assurance department actually deals with final product that is assuring its quality or rather maintain its quality to the best this assurance of quality to the best. This assuring of quality is given either in process of manufacturing itself or after the completion of the product. Thus there are two main types of quality assurance namely:-

1. Line quality assurance

2. Inward inspection

Line Quality assurance:-

In line quality assurance, frequent checking or inspection is done of any part during the manufacturing process. Here any part is taken and then tested, if it gives positive or desired result then it is preceded further. But if the result is not positive then there is a thorough inspection is tested again & again. In this checking process eight to ten people are involved.

Inward inspection:-

The inward inspection is done when the parts are purchased from the vendors. The parts which come from vendors are inspected properly by the inspector or engineer or technician and then if it is ok then the part is allowed to go to the production department. If the part is found faulty in the first inspection, the whole bunch of the parts are sent back to the vender and asked for new one.

36

4.14

PRODUCTION DEPARTMENT

The function of production department is to convert input to output. In production department the production manager has some responsible for making sure that raw material is provided and made in finished goods effectively, and make sure that work id carried out smoothly it is closely related to other departments like HRM, Finance etc

Incoming

Stores

Material issued on sub assembly

Testing

Unloading

Packing

Dispatching

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FUNCTIONS OF PRODUCTION DEPARTMENT

The functions of Production Management depend upon the size of the firm. In small firms the Production Manager may have to look after production planning and control along with Personnel, Marketing, Finance and Purchase functions. In medium sized firms, there may be separate managers For Personnel, marketing and Finance functions. But the production planning and control and Purchase and stores may be under the control of Production management department. In large sized firms the Activities of Production Management are confined to the management of production activities only. As Such, there are no hard and fast rules or guidelines to specify the function of Production Management, but in the academic interest we can mention some of the functions, which are looked after by the Production Management department. They are: (i) Materials: The selection of materials for the product. Production manager must have sound Knowledge of materials and their properties, so that he can select appropriate materials for his Product. Research on materials is necessary to find alternatives to satisfy the changing needs of the design in the product and availability of material resumes. (ii) Methods: Finding the best method for the process, to search for the methods to suit the available resources, identifying the sequence of process are some of the activities of Production Management.

(iii) Machines and Equipment: Selection of suitable machinery for the process desired, designing the maintenance policy and design of layout of machines are taken care of by the Production Management department.

(iv) Estimating: To fix up the Production targets and delivery dates and to keep the production costs at minimum, production management department does a thorough estimation of Production times and production costs. In competitive situation this will help the management to decide what should be done in arresting the costs at desired level.

(v) Loading and Scheduling: The Production Management department has to draw the timetable for various production activities, specifying when to start and when to finish the process required. It also has to draw the timings of materials movement and plan the activities of manpower. The scheduling is to be done keeping in mind the loads on hand and capacities of facilities available.

(vi) Routing: This is the most important function of Production Management department. The Routing consists of fixing the flow lines for various raw materials, components etc., from the stores to the packing of finished product, so that all concerned knows what exactly is happening on the shop floor.

(vii) Dispatching: The Production Management department has to prepare various documents Such as Job Cards, Route sheets, Move Cards, Inspection Cards for each and every component of the Product. These are prepared in a set of five copies. These documents are to be released from Production Management department to give green

38

signal for starting the production. The activities of the shop Floor will follow the instructions given in these documents. Activity of releasing the document is known as dispatching.

(viii) Expediting or Follow up: Once the documents are dispatched, the management wants to know whether the activities are being carried out as per the plans or not. Expediting engineers go round the production floor along with the plans, compare the actual with the plan and feed back the progress of the work to the management. This will help the management to evaluate the plans.

(ix) Inspection: Here inspection is generally concerned with the inspection activities during production, but a separate quality control department does the quality inspection, which is not under the control of Production Management. This is true because, if the quality inspection is given to production Management, then there is a chance of qualifying the defective products also. For example Teaching and examining of students is given to the same person, and then there is a possibility of passing all the students in the first grade. To avoid this situation an external person does correction of answer Scripts, so that the quality of answers are correctly judged.

(x) Evaluation: The Production department must evaluate itself and its contribution in fulfilling the corporate objectives and the departmental objectives. This is necessary for setting up the standards for future. Whatever may be the size of the firm; Production management department alone must do Routing, Scheduling, Loading, Dispatching and expediting. This is because this department knows Very well regarding materials, Methods, and available resources etc. If the firms are small, all the Above-mentioned functions (i to x) are to be carried out by Production Management Department. In medium sized firms in addition to Routing, Scheduling and Loading, Dispatching and expediting, some more functions like Methods, Machines may be under the control of Production Management Department. In large firms, there will be Separate departments for Methods, Machines, Materials and others but routing, loading and scheduling are the sole functions of Production Management. All the Above ten functions are categorized in three stages, that is Preplanning, Planning and control stages as Shown in figure

39

* * * * * *

Product development resources

Planning for 4 resources

Routing

Process design Materials Sales forecasting and estimating Estimating,

Plant location Plant layout and Layout of facilities Equipment policy

Methods

Scheduling

Machines and

Dispatching

Inspection

* * *

Preplanning Expediting

production

Manpower

Evaluation

Pre Planning Stage | Planning Stage | Control

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4.15

VIGILANCE DEPARTMENT

MANUAL OF FUNCTIONS & DUTIES The following manual is prepared by the Departmental Vigilance Office of ITI for handling the complaints against the employees. It is based on the functions and duties prescribed by the competent authority; The CVC Act 2003; and the Manual of the Central Vigilance Commission. Functions of Departmental Vigilance Office are wide and include collecting intelligence about the corrupt practices committed, or likely to be committed by the employees; investigate into verifiable allegations reported to it; processing investigation reports for further consideration of the disciplinary authority; taking steps to prevent commission of improper practices / misconducts, etc. Thus, the functions of departmental vigilance can broadly be divided into three parts, viz. (I) Preventive vigilance; (ii) Punitive vigilance; and (iii) Surveillance and detection. (i) PREVENTIVE VIGILANCE (i) To undertake a study of existing procedure and practices prevailing in the organization with a view to modifying those procedures or procedures and practices which provide a scope for corruption, and also to find out the causes of delay, the points at which delay occurs and device suitable steps to minimize delays at different stages; (ii) To device adequate methods of control over exercise of discretion so as to ensure that discretionary powers are not exercised arbitrarily but in a transparent and fair manner; (iii) To educate the citizens about the procedures of dealing with various matters and also to simplify the cumbersome procedures as far as possible; (iv) To identify the areas in the organization which are prone to corruption and to ensure that the officers of proven integrity only are posted in those areas? (v) To prepare the list of officers trapped in ACB and to analyze their cases. To find ways and means to plug the loop holes in the system and suggest the management accordingly. (vi) To recommend periodical rotations of staff on sensitive posts; (vii) To examine the standard operating procedures that the various departments of the organization have prepared on important subjects such as purchases, contracts, estimate sanction etc. and suggest modifications if any an that these are updated from time to time and conform to the guidelines issued by the higher authorities. (ii) PUNITIVE VIGILANCE (i) To receive complaints from all sources and scrutinize them with a view to finding out if the allegations involve a vigilance angle. When in doubt, the CVO / CIO may refer the matter to concerned Head of Department. (ii) To investigate or cause an investigation to be made into such specific and verifiable allegations which involve a vigilance angle; (iii) To process the investigation reports expeditiously for obtaining orders of the competent authorities about further course of action to be taken.
41

(iv) To ensure that the charge sheets to the concerned employees are drafted properly and issued expeditiously; (v) To ensure that there is no delay in appointing the Investigation / Enquiry officers (IO/EO) where necessary; (vi) To examine the inquiry officers report, keeping in view the evidence gathered by the EO / IO and the defense during the course of investigation / enquiry and to forward the report to the disciplinary cell where ever action is deserved. (vii) To ensure that the disciplinary authority concerned, issued a speaking order, while imposing a punishment on the delinquent employee. The order to be issued by the disciplinary authority should show that the disciplinary authority had applied its mind and exercised its independent judgment; (viii) To ensure that rules with regard to disciplinary proceedings are scrupulously followed at all stages by all concerned as any violation of rules would render the entire proceedings void; (ix) To ensure that the time limits prescribed for processing the vigilance cases at various stages prescribed by the Competent Authority are strictly adhered to. Complaint: - It is defined as information about corruption, malpractice or misconduct on the part of employees of ITI, from whatever source. All the Directors of the Board, not being the employees of ITI are not within the purview of the Departmental Vigilance Section and complaints received by this Section against any of the Board of Directors shall be filed without any action. Complaints which fall under the definition of Complaint and satisfy the criteria as per this manual shall be dealt with by the Department of Vigilance. Sources of Complaints: - Following are few examples of the sources from which the complaints may be received. This is not exhaustive list and only indicative and as said earlier, it may be received from any other source also. 1) Complaints received from employees of the organization or members of public. 2) Departmental inspection reports and stock verification surveys. 3) Scrutiny of annual property returns. 4) Reports of irregularities in accounts detected in the routine audit of accounts; e.g. tampering with records, over payments, misappropriation of money or materials etc. 5) Proceedings of Vidhan Sabha / Vidhan Parishad of Maharashtra State. 6) Complaints and allegations appearing in the print and electronic media. 7) Information even if it is received verbally from an identifiable source (to be reduced in writing); and 8) Intelligence gathered by the agencies like Police, CBI, ACB, local bodies etc and informed. 9) Ordered by the competent authority of ITI. Complaints with Vigilance Angle: - The Organization expects that the employees shall maintain the highest standard of probity and uprightness in their public dealings in and out of office. Any deviation on the part of the employee from the straight and narrow path, motivated by greed or self interest would invite vigilance enquiry against him. The vigilance angle is obvious in the following cases:-

1) Demanding and / or accepting gratification other than legal remuneration for an official act or for favoring a particular person or party to the exclusion of others. 2) Obtaining valuables without consideration or with inadequate consideration from a person with whom he has or is likely to have official dealings at his own level or his subordinates where he can exert influence.

42

3) Obtaining for himself or for any other person any valuable thing or pecuniary advantage by corrupt or illegal means or by abusing his position as a public servant. 4) Possession of assets disproportionate to his known sources of income. 5) Cases of misappropriation, forgery or cheating or other similar criminal offences. Any undue / unjustified delay in the disposal of a case by the concerned after considering all the relevant factors would reinforce the conclusion as to the presence of vigilance angle in a case. Gross or willful negligence, recklessness in decision making, blatant violation of systems and procedures, exercise of discretion in excess where no ostensible public interest is evident, failure to keep the controlling authority / superiors informed in time these are some of the irregularities where careful study of the case and weighing of the circumstances would be undertaken to come to the conclusion whether there is reasonable ground to doubt the integrity of the employee and existence of vigilance angle to the case. The main purpose of vigilance activity is not to reduce but to enhance the level of managerial efficiency and effectiveness in the organization. Commercial risk taking forms part of business. Therefore, every loss caused to the organization, either in pecuniary or non-pecuniary terms, need not necessarily become the subject matter of a vigilance inquiry. Thus, whether a person of common prudence, working within the ambit of the prescribed rules, regulations and instructions, would have taken the decision in the prevailing circumstances in the commercial / operational interests of the organization is one possible criterion for determining the bona fides of the case. A positive response to this question may indicate the existence of bona- fides. A negative reply, on the other hand, might indicate their absence. Anonymous/Pseudonymous Complaints: - As a general rule no action will be taken on anonymous or pseudonymous complaints received by the Departmental vigilance office. When in doubt, the pseudonymous character of a complaint will be verified by enquiring from the signatory of the complaint, whether it had actually been sent by him. If he cannot be contacted at the address given in the complaint, or if no reply is received from him within a reasonable time, it will be presumed that the complaint is pseudonymous and will be ignored. However if any substantial evidence / data is provided by the complainant, same will be verified / investigated discreetly. The identity of the complainant will not be revealed unless the complainant himself has made the details of the complaint either public or disclosed his identity to any other office or authority. Such complaints may be investigated / enquired further after taking the approval of the competent authority in the normal manner without revealing the identity of the complainant.

Complaints with only vigilance angle will be registered:Complaints with only vigilance angle will be registered. Generally, entries of only those complaints in which there is an allegation of corruption or improper motive; or if the alleged facts prima facie indicate an element or potentiality of a vigilance angle shall be made in the register. The investigation / enquiry will be conducted only if the complainant discloses his / her name with details of complaint with sufficient details of allegations. Also there should be substantial evidence in the complaint for preliminary investigation. The investigation / enquiry will be conducted irrespective of the fact that it otherwise does not fall under any of the above mentioned criteria, if recommended by any one of the Directors and approved by CMD. The Competent authority to decide whether to register the complaint will be CIO in case of employees up to EE or equivalent level, CVO for the employees up to SE or equivalent level and the CMD in all other cases. In the complaint, salient points indicating vigilance angle shall be highlighted. Recommendations of the officers down the line and approval of the Competent Authority shall be taken on the complaint itself. A suitable stamp for taking the approval of the competent authority
43

shall be prepared. Approval of the competent authorities will be taken by the RIOs (without any noting sheet) before entering the case in the register. The process of taking the approval shall normally be completed within a fortnight from the date of receipt. Complaints Register: - Complaint Register will be maintained as follows:-

(a) Every RIO is required to maintain a vigilance complaint register in the format prescribed and also on the Computer. Progressively, only IT based information shall be maintained so as to function with least paper work. It will have parts for different category of employees as per Service Regulations. If complaint involves different categories, it will be shown against the highest category. (b) Every complaint, irrespective of its source, and for which approval for investigation / enquiry has been taken will be entered in the prescribed format in the complaints register chronologically as it is received or taken notice of. A complaint against several officers will be treated as one complaint. Also number of complaints against one employee or one office may be clubbed together as one if the allegations are similar, for the purpose of investigation/enquiry. Investigation/Enquiry: - The dictionary meaning of the words investigation and enquiry is same. However for the purpose of administrative convenience, the two are differentiated. Based on the allegations made in the complaint, the information and evidences provided by the complainant, it will be decided whether investigation or enquiry has to be conducted. Investigation will mean the preliminary fact finding in small cases of misappropriation so as to ascertain whether the allegations are true and have sufficient grounds to proceed further for issuing the charge sheet to the delinquent employee(s). Enquiry will mean detailed fact finding in big cases of misconduct involving vigilance angle and may be called Detailed Investigation. However there is thin line to distinguish between the two and it will be the sole discretion of the competent authority to differentiate between the two. Also the Investigation / Detailed Investigation (Enquiry) conducted by the vigilance is a pre charge sheet activity, aimed at finding out whether there are prima facie adequate evidences for taking action against the employee(s) against whom the complaint with vigilance angle is received. This has to be completed in seven days/one month as the case may be. As against this, the Departmental Enquiry has to be conducted after issue of the charge sheet by the Competent Authority. The Departmental Enquiry shall be conducted as per the procedure and time prescribed in the Service Regulations and as per the directives of the Competent Authority prescribed in the Service Regulations. The vigilance Investigation / Detailed Investigation will be conducted by the Departmental Vigilance for helping the Competent Authority prescribed in the Service Regulations to punish the employees who have committed act of misconduct with vigilance angle. The Competent Authority if it desires may collect additional evidence before/after the issue of the Charge Sheet so as to impose the punishment within the prescribed time limit as per Service Regulations. The routine procedure of issuing Charge Sheet based on the report of the Departmental Vigilance and conducting the Departmental Enquiry after the issue of Charge Sheet will invariably be undertaken as per the Service Regulations by the Authority competent to issue Charge Sheet.

The purpose of vigilance Investigation /Detailed Investigation (Enquiry) is to determine whether there is prima facie substance in the allegations. The Investigation / Enquiry may be made in several ways depending on the nature of allegations and the judgment of the Investigating / Enquiry officer.

a) If the allegations contain information which can be verified from any document or file or any other departmental records. b) In case, where the alleged facts are likely to be known to other employees of the department.

44

c) In case where enquiries from the employees of any other Govt.department or office is considered necessary. d) Site inspections. e) Collecting information / evidence from non- official persons. f) Investigation against persons in special circumstances. g) Obtaining the version of the suspect employee. h) Preliminary Enquiry by officers other than Vigilance Officer. Handing over of complaints for Investigation: - After having taken the approval of the competent authority to proceed ahead for conducting the Investigation, the case shall be either handled by the CIO or the RIO or nominated officer from the panel, as directed by the competent authority. In any case the Investigation shall be completed within 7 days / or within the period as directed by the competent authority, from the date of handing over of the complaint. The period of Investigation may be extended by the competent authority as per the delegation of powers. The investigation report shall be submitted to the competent authority for decision regarding proceeding further or closing the case. A complaint after registration and preliminary Investigation / Investigation can be dealt with as follows:(a) It may be filed after Investigation; or

(b) It may be passed on to the concerned administrative authority for appropriate action on the ground that no vigilance angle is involved; or (c) It may be taken up for detailed Investigation by the departmental vigilance office; or

(d) The report of Investigation may be forwarded to the Disciplinary Cell for taking action on the delinquent employees. Handing over of complaints for Detailed Investigation: - Once the complaint is received, it is not always possible to ascertain whether it will require preliminary or detailed Investigation. Hence while allotting the case to officers in the panel; it will be started always as a preliminary Investigation. While Investigating, if it is observed to have a wide scope, it may be decided to carry out the detailed Investigation. The detailed Investigation (Enquiry) on the complaint will be conducted as per the approval of the competent authority either departmentally by CIO or RIO or may be carried out with the help of the nominated person from the panel of Enquiry Officers or with the help of adhoc committee as per the directives of the Competent Authority. The detailed Investigation (Enquiry) will be completed within a period of one month. The period of detailed Investigation may be extended by the Competent Authority as prescribed. The report of the detailed investigation shall be forwarded to the Disciplinary Cell or may be filed as per the decision of the Competent Authority. Preparation of Investigation/Enquiry Report:- The officer Conducting Investigation / Detailed Investigation (Enquiry) is expected to prepare a self Contained report including the material available to controvert the defense. The vigilance Investigation / Enquiry report may contain the explanation of the suspect employee / officer. The fact that an opportunity was given to the employee / officer concerned should be mentioned in the Investigation / Enquiry report even if the employee / officer did not avail of it. The Investigating / Enquiry officer should take all connected documents in his possession as this becomes helpful if departmental action has to be taken against the employee / officer. If the documents cannot be handed over to the Departmental Investigation / Enquiry Officer as the same are in use for day to day work, the attested Xerox should be handed over by the person handling such document. However, in any case, the original papers are not to be handed over to the Investigation /
45

Enquiry officers in the panel and only attested copies of the documents should be provided. The originals should be kept in safe custody by the concerned office. In case the document is in daily use, it should be kept in safe custody by the person handling the same. The originals are to be handed over to the competent authority as and when asked for initiating the disciplinary action. Disciplinary action on the Investigation / Enquiry Report: - The substantiated vigilance Investigation / Detailed Investigation (Enquiry) report will be submitted by the CIO to the Disciplinary Cell for further action as per the Service Regulations. The DC will ascertain that the disciplinary action is taken within three months and the copy of action taken is forwarded to the CIO/CVO. Once the case is recommended for disciplinary action by the office of the CIO, it will be followed up till its logical end by the concerned RIO. The RIOs shall maintain record of investigation conducted / disciplinary action taken / not taken. Disciplinary action taken / not taken needs to be informed to the CIO/CVO. Approval of the CIO/CVO will be obtained by the Competent Authority where ever prescribed in ITI Employees Service Regulations if the action proposed is different than the substantiated investigation report. In case of any disagreement between the CIO/CVO and the Competent Authority, the case will be dealt as per the provisions prevailing in the ITI Employees Service Regulations 2005. Action against person making false complaints: - The following action may be taken:-

(a) Malicious, vexatious or unfounded complaint against a public servant is punishable under Section 182 of the Indian Penal Code. (b) Under section 195(1) (a) of Cr.P.C. a person making a false complaint can be prosecuted (where complaint is lodged with a court of competent jurisdiction by the public servant falsely complained against by a public servant to whom he is subordinate.) (c) If false complaint is lodged by the employee against his superior or colleague, action against him may be initiated as per Service Regulation 86 (3) read with Schedule B Sr No.29. Depending on the motive of false complaint and the allegations made by him in the complaint, action under other Acts of Misconduct listed in the schedule may also be initiated against him. Grant of immunity / pardon to approvers: - If during investigation, it is found that an employee has made a full and true disclosure implicating him and other employees, the CVO/CIO may recommend for grant of immunity / leniency to such a person from departmental action or punishment. Immunity / Leniency will be granted only in case of serious nature and that too on merits, and the Disciplinary Authority in consultation with / on the recommendation of CVO/CIO can decide whether the case merits grant of immunity / leniency in the interest of satisfactory prosecution of the disciplinary case. (iii) SURVEILLANCE AND DETECTION The CVOs office may conduct regular and surprise inspections in the sensitive areas in order to detect if there have been instances of corrupt or improper practice by the employees of the organization. The office shall also undertake prompt and adequate scrutiny of property returns and intimations given by the employees under the conduct rules and proper follow up action where necessary. In addition, intelligence from its own sources in whatever manner deemed appropriate shall be gathered about the misconduct / malpractices having been committed or likely to be committed. (lV) THE MANAGEMENT APPRAISAL The CIO office will apprise the Management about the progress of overall and the specific cases as and when asked for. Suitable measurement of the corruption will be devised so as to invite healthy competition amongst Zones / Regions and to apprise the Management relative standing of the Zones and Our Organization vis a vis other Distribution Companies.

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The Management Information System: - The following reports shall be submitted by the office of the C.I.O. 1. Monthly Reports:-Monthly reports of the work done on vigilance Matters will be furnished by the 5th day of the following month to the CIO by the RIOs. 2. Quarterly Reports:-Quarterly progress reports on the complaints are to be furnished to the CVO by the 15th day of the month following the quarter ending March, June, September and December. 3. Yearly Reports:-Annual report of the previous year shall be furnished to the CVO by 30th of the succeeding year. 4. Follow up Record: - Follow up record of each case shall be maintained by each RIO and may be asked as and when required by the CVO/CIO. The status of those cases will be mailed / displayed on the web site in which Investigation/Enquiry is completed and action is proposed and will be updated immediately in case of any change by the CIOs office. The DC/Est./TE or any other concerned section will verify the same at their level from the information provided on the net. No separate clearance will be given by the CIOs office in case of Investigation / Enquiry against individual employees for complaints against them for any departmental purpose such as promotion, transfer etc. (V) ADMINISTRATIVE INSTRUCTIONS Selection, Tenure and Training of Personnel for CIOs Office:The approval of CIO / CVO will be necessary before posting any employee in the Departmental Vigilance office. The tenure of each employee will be maximum three years. No extension or second tenure will be given to any employee. Training of minimum 5 days in a year will be compulsory for all the employees. Any question raised about the integrity of the employee working in the Departmental Vigilance will be immediately investigated and in case of any evidence or doubt about his integrity, he will be transferred immediately. Conduct of the Employees of CIOs office:- No visitors shall be allowed to visit the office of CIO/ interact with the officers of the office. If it is official visit, permission of CIO will be obtained. Board displaying the above order will be displayed at some conspicuous place at the entrance of the office. Right to Information Act: - The Right to Information Act 2005 is applicable to the office of the CIO and accordingly all the compliances required under the provisions of the Act which are applicable to other HODs at the Corporate Office shall be applicable. Preservation of Record:- All the record in respect of various complaints shall be preserved as per the Circulars of ITI issued from time to time and as per the provisions of the Right to Information Act.2005. It will be the responsibility of each RIO to keep the record of complaints and the correspondence there of received for his respective area.

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4.16

INTERNAL AUDIT DEPARTMENT

SCOPE & FUNCTIONS

3.1 The scope of Internal Audit is very wide and cannot be laid down precisely. However, broadly Internal Audit is concerned with any phase of business activity which can be the basis of service to Management.

3.2 Internal Audit can focus the factors responsible for loss, failure or inefficiency so that they are rectified immediately, if possible, or measures can be taken to avoid their recurrence in future.

3.3 The main duties and functions of Internal Audit, inter alia, are broadly classified as under: i) Systems Audit

ii) Operational Audit including Efficiency Audit

iii) Management Audit

3.4 Since Internal Audit is a Management tool, its object is to assist the Management at various levels by providing it in time with objective analysis, appraisals, pertinent comments and recommendations in respect of the

Company's affairs to enable the Management to take timely remedial action. Simplification of procedures, setting up of effective and efficient co-ordination between departments, gearing up of internal controls, cost reduction by minimization of wastages in various operations, revenue augmentation by proper inventory controls and maximum utilization of machines, materials and Management. manpower are some of the areas where Internal Audit can assist

3.5.1 Systems Audit: Ensuring that the rules and procedures as laid down by the Company from time to time are properly understood correctly interpreted and complied with by the concerned personnel of the departments/units/tea estates of the Company is Systems Audit. The audit involves verification as to whether each deportment/unit/tea estate is maintaining proper records and having a reasonable system of recording receipts, issues end consumption of materials and stores and the system provides for proper allocation of the materials consumed, man hours spent and overheads incurred to the relative jobs. Improvements over the existing procedures need also be suggested, whenever necessary. When a change in the system is felt, only general recommendations should be indicated leaving the detailed system to the concerned departments / units / tea estate's personnel.

3.5.2 Operational Audit including Efficiency Audit : The functions of operational audit is to ensure that Management controls are functioning effectively and efficiently in all the business activities of the Company and all the operations are in tune with its objectives. This audit includes review of organizational structure, manufacturing processes, production planning and scheduling, adherence to prescribed technicalities in purchasing
48

and other functions as apply to Govt. Companies to bring about overall efficiency. Audit examines that the broad and accepted principles of commercial accounting and practice have been consistently followed and any deviation from them is properly authorized and disclosed in the relevant statements. It sees that all transactions carried out are authorized and substantiated by proper vouchers / documents. 3.5.3 Management Audit: It is basically an audit of Management's policies and the Departments / Unit's / Tea Estate's adherence to the same, its performance and efficiency and measuring of the profitability and productivity of capital invested. The main function of Management Audit is to review the efficiency or otherwise of all operations and see that the affairs of the Company are conducted on healthy lines. Other important areas in which this type of audit is applied are inventory controls, investment planning and decision making, optimum utilization of capacity and reduction and control of various costs and the like.

3.6 For conducting audit effectively and efficiently, the Internal Audit Department shall study thoroughly the systems and procedures followed by the company's various departments, units And tea estates and their nature of work before commencing the audit. As the extent and type of checks to be applied in audit depend largely upon the nature of operations carried out, study of these systems and operations is of prime importance. The existing departmental checks / controls need also to be studied for the purpose and it should be ensured that they are adequate enough to bring to light any errors and frauds automatically in the normal course of carrying out operations in different departments / units / tea estates.

3.7 The General Manager (Internal Audit) / Chief Internal Auditor would keep proper record of all the decisions of the Board / Management and relevant Govt. Notifications etc.

3.8 For discharging the above functions, Internal Audit Department shall have full

and free access to all

departmental / Unit's / Tea Estate's records including those considered confidential and copies of minutes of Board Meetings, Management Committee Meetings, Management Circulars, Management Decisions and Orders, Govt. Circulars and Orders. Important orders/circulars/procedures issued by the Management find various Govt. departments shall invariably be endorsed to the General Manager (Internal Audit) / Chief Internal Auditor. Copies of all queries raised by Statutory / Govt. Auditors shall also be endorsed to Internal Audit. Confidential records / documents shall, however, be examined by the General Manager (Internal Audit) / Chief Internal Auditor only.

4. INTERNAL AUDIT PROCEDURE

4.1 As the operations and records to be audited era multifarious and varied in nature, it is not possible to lay down within the frame of this manual a comprehensive set of instructions / procedures for carrying out the audit. However, relevant instructions / procedures for carrying out audit will be issued from time to time to Internal Audit personnel by the General Manager (Internal Audit) / Chief Internal Auditor, depending on the nature of each assignment.

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4.2 Internal Audit is usually conducted by means of test checks of items selected on the basis of random sampling or on percentage basis or specified monetary limits that may be decided upon from time to time depending on the situation. The degree of test checks may be varied according to the findings of audit. If audit reveals more irregularities, checking /verification will be strengthened. Audit coverage of all departments / units / tea estates and transactions is subject to availability of Audit personnel.

4.3

The extent of examination of individual transactions would depend upon the system of controls in each

department/unit/tea estate and its operation in practice and the measures instituted by Management for the protection of Companys properties / interest. In case these controls and measures are working effectively, a test chock of the records may be resorted to instead of detailed checking. However, depending upon each case, past experience and Statutory and Govt. Auditors observations, audit may be carried out either in depth or by test checking.

5. AUDIT PROGRAMME & REPORTS

5.1 For conducting internal audit effectively and systematically, a programme of audit for a year will be prepared well in advance and got duly approved by the Chairman. The Internal Audit Year normally commences on 1st July and ends on 30th June. This may be changed as and when found necessary. For drawing up such annual internal audit programme, the available working days in such internal audit year would be worked out. From this, privilege leave days (at present, 30 days) and an estimated number of days for sick leave (at present estimated at 10 days) would be deducted. The net figure of working days would be multiplied by the number of executives in the Internal Audit Dept. to arrive at the man days available in the Internal Audit Year. 10% of this would be set aside for contingencies and the balance man days would be allocated over suitable number of jobs to cover areas in each of the Departments / Units / Tea Estates in such a manner that over a period of 3 years all areas of each Dept. / Unit / Tea Estate would be covered in audit at least once. For conducting outstation audits, transit time would have to be provided.

5.2 Care should be taken while drafting the program to include all important areas for review, and depending upon the strength of the Audit personnel, as many departments / units / tea estates as possible should be covered in the audit programme. To minimize objection of Statutory / Govt. Auditors on the Companys accounts, their previous observations and objections should be kept in view while preparing the programme.

5.3 The audit work will be allotted among the Internal Audit personnel by the General Manager (Internal Audit) / Chief Internal Auditor. Internal Audit Department, as far as practicable, should adhere to the approved programme. Any deviation from the approved annual audit programme found necessary will be made with the concurrence of the Chairman, Director (finance) / Financial Controller.

5.4 Normally prior intimation of the probable dates of audit would be sent to the concerned Chief Executive / General Manager / Superintendent and operational heads of departments / units / tea estates so that they can give
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necessary instructions to relevant officers to make available the requisite documents, files and records for audit. However, in cases where the audit is to be conducted by surprise or urgently on the instructions of Management, prior notice is not necessary.

5.5 The following procedure should normally be followed by the Internal Audit Department for clearing the audit queries and drafting the final reports:

A. As far as possible, the queries arising during course of audit would be discussed personally by the Internal Audit personnel working on the respective assignments with the concerned department/unit/tea estate and settled then and there.

B. Where a query is of such nature which requires further investigation by the concerned department / unit / tea estate and thus cannot be replied immediately, an audit memo would be issued which invariably is to be replied by the auditee department / unit / tea estate within 7 days of the receipt of the memo. This time span should not be exceeded unless special circumstances warrant more time which will be mutually agreed upon between the audittee department / unit / tea estate and the Internal Audit personnel.

C. If any matter requires immediate attention and cannot wait till the final report, then the same shall, after obtaining comments from the Chief Executive /General Manager / Superintendent and operational heads of the department / unit / tea estate, be reported in the form of a progress / interim report.

D. When the audit of a particular department/unit/tea estate is concluded, the Internal Audit personnel who conducted the audit will put up to the General Manager (Internal Audit) / Chief Internal Auditor through Senior Manager(Internal Audit) a draft report on audit findings using the time earmarked in each job for the same. Normally this will be done within 7 days of completion of the audit. Matters which require further enquiry and / or discussion shall be deferred for inclusion in a supplementary report, or if necessary, shall be deferred for next visit of Internal Audit to the department / unit / tea estate. Such draft report will be forwarded to the respective Chief Executive / General Manager / Superintendent by the General Manager (Internal Audit) / Chief Internal Auditor and within 10 days of the date of receipt of the same, comments shall have to be given by the respective Chief Executive / General Manager / Superintendent and / or by the operational heads of the departments / units / tea estates or a discussion shall be held on the draft report, minutes of which shall be drawn up, signed and dated. In the case of outstation audits (Tea Estates and Branches), 21 days will be given from the date of dispatch (to take care of the transit time etc.) for comments to be received by Audit. If within 10 days or 21 days, as the case may be, comments are not obtained / discussion is not held, the General Manager (Internal Audit) / Chief Internal Auditor will finalize the report on the basis of audit findings in the draft stage. Comments of the Chief Executive / General Manager / Superintendent and / or operational heads of departments / units / tea estates, if subsequently received, shall be given due cognizance in the follow-up on the report.

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E. Should the Chief Executive / General Manager / Superintendent and operational heads of the departments / units / tea estates hold any views which are net in consonance with the Internal Audit findings and / or feel that further clarification is to be given, the matter may be referred by them to the Chairman with a copy to the General Manager (Internal Audit) / Chief Internal Auditor for Chairman's final disposal.

F. The final report in which will be incorporated the outcome of comments /discussion referred in (d) above shall be submitted by the General Manager (Internal Audit) / Chief Internal Auditor to the respective Chief Executive /General Manager / Superintendent and operational heads of the departments / units / tea estates with a copy to the Chairman, Director (Finance) and Financial Controller highlighting the final results of audit. G. In order to make the audit report more clear and simple, and to convey what exactly it intends to convey and serve a useful purpose, the following main points should be borne in mind while drafting audit reports :

i.

Report must be simple and brief but comprehensive;

ii.

It should contain appropriate headings;

iii.

In the report will be incorporated all irregularities & objections which have not been replied or replied unsatisfactorily and those replied satisfactorily but have financial implications which were found during personal discussions or as per memos issued ;

iv.

Where Audit is satisfied with its findings on examination of any area during the course of a particular audit assignment, mention will be made of the same in the report;

v.

The matter shall be presented according to significance i.e. most important points will be highlighted;

vi.

Suggestions, where necessary, shall be given by Internal Audit;

vii.

The report shall be timely;

viii.

Where possible, a summary of corrective action to be taken would be submitted along with the report;

H. It is the responsibility of Chief Executive / General Manager / Superintendent and operational heads of the departments / units / tea estates to give adequate consideration of, and take effective action on audit findings and recommendations. The respective Chief Executive / General Manager /Superintendent / the
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operational heads of the departments / units / tea estates are normally required to implement the accepted suggestions within 3 months (90 days) of the date of receipt of the final report. The time span should not be exceeded and all efforts/ steps shall be taken by the operational heads of the auditee departments / units / tea estates to maintain the target date for implementation. Should some special circumstances or matter beyond ones control arise, extension of time shall be sought in writing clearly indicating the reasons and a revised date of implementation are given.

I.

Internal Audit will assess the implementation of accepted suggestions of the final report during its next visit to the department / unit / tea estate. In case the accepted suggestions are not implemented within the time span of 3 months or the revised date, as the case may be, the same shall be reported to the Chairman by General Manager (Internal Audit) / Chief Internal Auditor with copies to Director (Finance) and Financial Controller through periodical reports.

5.6 The remarks or observations if any of the Chairman / Director (Finance) / Financial Controller on the final audit report will be communicated to the concerned Chief Executive / General Manager / Superintendent and operational heads of the concerned departments / units / tea estates for information and necessary corrective action under intimation to the General Manager (Internal Audit) / Chief Internal Auditor.

6.1 The General Manager (Internal Audit) / Chief Internal Auditor is expected to maintain evidence of work done by him and his internal audit teams by means of well designed working sheets or notes containing, inter alia, the nature of work done, the extent of checking done, names of individuals who have carried out the work with their initials, details of various important points observed, important queries raised in the course of audit and the clarifications obtained.

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4.17

FINANCE DEPARTMENT

The finance department is the heart of the company. This department is supposed to be arranging the funds that are required by the company. The Finance Department is responsible for managing all the finances of the organisation. The Finance team are responsible for dealing with all money coming into and going out of the organisation. In order to understand the purpose of the Finance function, lets look at the different tasks that are carried out by the Finances Department.

Accounting year:
The ITI Ltd follows the April - March financial year. By the end of each year, the company is supposed to submit its accounts to the external auditor. They pay some taxes and duties. The auditing of the company is of two types. They are: a) Internal b) External

Internal auditing:
The internal auditing is done by the internal auditor of the internal auditing department of the company. The internal auditing is done once in a month. The internal auditor checks for the accuracy of the accountants. The entries in the daybooks and the ledgers are posted daily by the other accountants. By the end of every year, the trading and profit and loss account and the balance sheet is prepared to find the financial position of the company. By preparing the trading and profit and loss account and the balance sheet, the managing director will know whether the company is enjoying a profit or it is running in a loss.

Eternal auditing:
The external auditing is done once in a year. This is done by an external auditor, who comes from the auditors office. He checks for the accuracy of the accounts

Credit period:
ITI Ltd receives a credit period of 90days from their suppliers for the purchase that they make. They give a credit period of 30 to 60 days for their customers.

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They generally do not give any cash discount, as the transactions are done on the credit basis. When they make cash transactions, they give cash discounts also.

Monthly reports:
The general monthly reports that are prepared are: a) Total receipts b) Total payments c) Outstanding list of debtor d) Outstanding list of creditors The above listed reports are prepared once in a month and submitted to the managing director for his reference. The managing director scrutinizes the above reports and passes any orders or corrections to be made. Later, the finance manager and the assistant finance manager execute his orders.

Taxes and duties:


The company pays two kinds of taxes. They are: a) Income tax b) Sales tax The income tax is paid only once in a year. But, the sales tax is paid ever month. The taxes are paid regularly. The income tax is paid in the month of March and the sales tax is paid on the 20 th of every month. A period of one month is given as accredit period. The finance manager looks after all the activities. He brings to the notice of the managing director, if some payments are to be made for the purpose of any taxes or duties or any such expenses. The managing director passes the required orders. The finance manager and the assistant finance manager execute the orders off the managing director.

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Accounting statements maintained by the company:


The following accounting statements are maintained by the accountants of the finance department: a) Journal b) Ledger c) Purchase book d) Sales book e) Bank reconciliation statement f) Cash book g) Trial balance h) Trading account i) j) Profit and loss account Balance sheet

k) Party wise receipts and payments account l) Outstanding debtors and creditors

m) Cash flow n) Fund flow o) Of take report The above listed are a few accounting statements that are maintained by the company.

Utilization of resources:
The company utilizes its resources by purchasing asset like machineries, computers, vehicles that are used for transportation, etc. apart from this they put also acquires investments in some will established companies.

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The Role of Finance Department

1. Preparing and Presenting Final Accounts o o o o The Finance team are responsible at the end of each financial year, to record how well the organisation has performed financially. In order to show how well the organisation has performed the Trading, Profit and Loss Account and the Balance Sheet are prepared. The above documents will then be presented to Senior Management who will be informed of how much money the organisation has made or lost over the year. This helps management in making decisions for the future. For example, if they need to cut costs they may decide to make some staff redundant. Or, alternatively, if they have made large profits, they may decide to open up a new store so that they can grow.

2. Paying Bills on behalf of the Organisation/Departments o The Finance team are responsible for paying for all purchases made within the organisation. You have recently learnt that a Department will submit a REQUISITION form to the Purchases department for new resources. This information is then passed on to the Finance team who actually PAY for the goods ordered. o o o o When the supplier sends an INVOICE, the Finance team will check that it is correct. For example, check the quantity ordered; the price of each item etc. It is essential that all invoices received are paid promptly to the supplier. This will help establish the supplier relationship which could lead to discounts and trade credit being offered in the future. The most common method of payment the Finance team use is a CHEQUE. The Finance team will ensure that an accurate record of all cheques paid is kept to make sure that cash is being transferred appropriately.

Processing a Cheque: If the Finance team are paying the supplier using a cheque the supplier is known as the PAYEE. The amount to be paid is written in text in full as well as in figures in the box at the side. The person who signs the cheque will be an authorised employee of the Finance team. There will be a limited amount of employees who are allowed to sign cheques to make sure that nobody is misusing the organisations cash. Each cheque has a STUB. This means that when a cheque has been written and removed from the chequebook, the stub is left. To keep an accurate record, the stub will display the amount of money paid, to whom and on which date.

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A Cheque will be refused if the following occurs: The cheque has not been signed. The signature is false. The cheque has been dated in advance of when it is received. The text showing the total amount is different from the numbers showing the total amount. The cheque appears to have been falsified e.g. the account number has been changed or the date has been changed. 3. Paying Employees Wages o o o o It is very important that the Finance Department works closely with the Human Resources Department in ensuring that all employees are paid the correct amount and on time. The Human Resources Department informs the Finance Department exactly how much each individual employee should receive at the end of each month/week. Once the Finance team have processed this information in their records, the wages are automatically paid into each individuals bank account. For smaller organisations, the Finance team may decide to make up pay packets by handing over cash at the end of each month/week. The functions carried out by the Territorial Administration Division are as indicated below
To fund Corporate Plans and Budgets. To formulate Financial and Accounting policies. To devise strategies for effective revenue generation, collection and disbursement. To advise Management on the most cost-effective methods of carrying out operations and hence ensure adequate returns on investments. To install internal checks and control in all aspects of financial management. To facilitate the provision of operation stock and stores and the maintenance of appropriate records pertaining there

Financial control is also called inventory control List of material called bills of material

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ITI LIMITTED, PALAKKAD


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2011 (Rupees in Lakhs)

Particulars
INCOME:Sales(Net of Sales Tax) Services Sales and services(Net of Sales Tax) Less : Excise duty on sales Total Sales and Services(Net of ED & ST) Interest earned Other income Transfer from Grant in Aid TOTAL EXPENDITURE:Consumption of RM&Prodn. Stores Purchase for direct sales Sundry charges on Instn.&Maint.of Xages Salaries, wages and Ex-gratia Companys contribution to P.F. &other funds Workmen & staff welfare expenses Voluntary retirement Scheme Depreciation Less: Transfer from revaluation reserve Financing expenses Deferred Revenue Expenses Written off Manufacturing expenses Administration expenses Selling expenses Less : Transfer to Capital account Accretion/(Discretion)to: Work-in-progress Manufactured components Stock-in-trade Miscellaneous expenditure not written off Inter unit transfers Cost of sales for the year Profit for the year before tax Prior period adjustments(Net) Total profit before tax Less: Provision for taxation Current Income tax Deferred tax

Sch. No.
8.1

For the year ended 31-03-2011


1291.68 1435.71 2727.39 18.10 2709.29

For the year ended 31-03-2011


15380.4 1309.61 16690.05 455.72 16234.33 2.19 38.31 181.63 16456.46

8.2 8.3 8.4

0.00 45.86 166.43 2921.58

9.1

192.64 398.33 725.11 1316.08

10188.06 857 841.68 1455.88 370.66 164.67 2073.95 371.5 977.86 0.00 1674.01 485.49 7.11 0.00 474.14 93.37 380.77 708.06 0.00 1689.6 2280.12 35.16 1991.21

11886.74

9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.1 9.11

1507.88 412.33 153.74 0.00 448.17 [76.67]

9.12 9.13 9.14 9.15 9.16 9.16A

0.00 57.66 10.12 0.00 0.00 7.96 59.82 3617.8 692.22

0.00 191.1 28.06 7574 0.00 183.25 55.53 15647.99 808.47 189.04 619.43

9.17

41.96 654.26

Profit after Tax

Finance Manager Palakkad, June 30,2011

Executive Director

Chartered Accountant

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ITI LIMITTED, PALAKKAD BALANCE SHEET AS AT 31-03-20011


(Rupees in Lakhs)

Particulars

Sch. No.

AS AT 31-03-2011

AS AT 31-03-2011

Source Of Funds Share Holders Funds Share Capital Reserve & Surplus Grand In Aid Loan Funds Secured Loans Unsecured Loans Corporate Office/Unit Account(Credit) Corp. Office Account-Profit Of The Year Total Application Of Funds Fixed Assets Gross Block Less : Depreciation To Date Net Block Capital WIP & Machinery In Transit Investments Current Assets, Loans And Advances Inventories Sundry Debtors Cash & Bank Balances 5.1 5.2 5.3 1098.73 10773.31 5801.09 17673.13 Loans & Advances Total Current Assets(A) Less: Current Liabilities And Provisions Current Liability Provisions Total Current Liabilities(B) Net Current Assets(A)-(B) Corporate Office/Unit Account(Debit) Corp. Office Account-Loss For The Year Misc.expediture To The Extent Not w.Off Total 6.3 6.4 7.1 6.1 6.2 24440.83 1696.50 26137.33 (7387.05) 48596.46 654.26 0.00 50877.56 18857.29 768.87 19626.16 (6222.29) 46655.57 0.00 0.00 49186.53 5.4 1077.15 18750.28 945.46 11863.36 69.56 12878.38 525.49 13403.87 3.1 3.2 4.0 18130.53 9704.94 8425.59 588.30 9013.89 18002.33 9256.77 8745.56 7.69 8753.25 2.1 2.2 2.3 2.4 16.13 0.00 43903.15 0.00 50877.56 0.00 0.00 41365.72 619.43 49186.53 1.1 1.2 1.3 6279.06 679.22 6355.73 845.65

Schedules 1.1 to 10 and Accounting policies annexed, from an integral part of Balance Sheet. As per our report of even date.

Finance Manager Palakkad, June 30,2011

Executive Director

Chartered Accountant

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5. 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 companys growth. In fact we can see that the company has modernized its machineries and all and its the biggest Telephone industry in whole India. With all most modern facilities. The institutional training at ITI Limited Palakkad 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.

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6. BIBILIOGRAPHY

TEXT BOOKS

Finance Management by Neethi Gupta

WEBSITES www.wekkipedia.com www.itipalakkad.in/ http://www.itiltd-india.com/

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