1. CHAPTER NO:
1
INTROduCTION
1

2. CHAPTER – 1
INTRODUCTION
The practical training done during the period from 15th
June 2011 and 31st
July 2011
was the part of the partial fulfillment of the Master Degree in Business Administration. This
practical training work was a great experience to know all about the working of the functional
areas in the Krishnakanth Spinning Mills, Dindigul.
The general objective of Training Programme is to gain practical knowledge on the
overall functioning of the various departments of the organization.
The following are the specific objectives of Training Programme:
• To study about the organization and management.
• To analyze various functions performed by the various departments in the
company.
• To secure practical knowledge regarding the Manufacturing, Finance,
Accounting aspects and Marketing of yarn.
• 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 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.
This will help me to know about the current scenario of the corporate sector and their
strategies which will be very useful during my future endeavors.
2

3. CHAPTER NO:
2
3

4. ABOuT TEXTILE
INduSTRY
CHAPTER – 2
ABOUT TEXTILE INDUSTRY
INTRODUCTION
The Indian Textile industry occupies an important place in the economy of the
country because of its contribution to the industrial output, employment generation and
foreign exchange earnings. At present, the contribution of the textiles Industries to GDP is
about 4 percent. The textile industry provides direct employment to about more then 30
million peoples and is the second largest employment provider in India after agriculture. The
contribution of this Industry to gross export earning is about 37 percent and its ads less then
1.5 percent to the gross import bill of the country.
ORGANIZED TEXTILE INDUSTRY
The organized textile industry consists of three distinct categories viz. spinning mills,
Coarse and medium composite mills, and superfine composite mills are not able to adjust
their cost in the face of rising prices of raw materials and increase in wages. Consequently,
many of them became uneconomic units and ran into difficulties. Fine and superfine
composite mills use foreign cotton; they are not subject to stock restriction and can, therefore,
carry on stable production programmer.
4

5. PROBLEM OF COTTON TEXTILE INDUSTRY
In the past, cotton mill industry suffered from incompetent and selfish managing
agents and directors who were more interested in modernization. If management of textile
units had been selfish and exploitative, the role of trade unions in the industry has not been
helpful either. In fact, the closure of many textile mills in the country was forced upon by
short-sighted union leadership. The Bombay mill industry, for instance, was literally ruined
by one-year long strike organized by Dutta samant controlled unions. Besides these, the two
most important factors which have spelt disaster to the industry in the last three decades are
Government’s textile policy and growth of the power loom sector. The result was that many
textile mills became inefficient and uneconomic-one third of the mills became sick and were
closed down. As many as 132 mills have been closed down.
GOVERNMENT CONTROL AND HEAVY EXCISE DUTIES
The cotton textile industry has suffered badly due to wrong and, often confused policy
of the Government. In the past Government had sought control of price, distribution of yarn,
pattern of production, etc. At one time, price of cloth were fixed by the Government far
below cost. Under the yarn distribution scheme of 1972, the Government made it obligatory
on all mills to supply 50 percent of the production of yarn to the decentralized sector at
reduced rates. The duty on imported cotton was quite high and it not only made import of
cotton. The excise duties on different varieties of cotton cloth were quite heavy and besides,
they were discriminatory.
A serious problem of the mill sector at one time related to production of controlled
cloth. To ensure availability of coarse and medium varieties of cotton cloth to be produced by
mills from 400 million meters to 800 million meters. The industry vainly protested of
controlled cloth. The planning commission openly admitted that the controlled cloth scheme
under which the price of cotton alone was higher then controlled cloth. It was only in October
1978 that the Government exempted the mills from the obligation to produce controlled cloth.
But by that time, cotton mill industry had suffered very badly and many mills forced to shut
shown.
5

6. PROBLEM OF RAW MATERIALS
The industry faces the problem of building up a regular supply of its material – cotton
– in adequate quantities. The latter constitutes the largest single element in the cost of yarn
and cloth production. Despite the importance of the industry and the long period of its
growth, the position of raw material has remained unstable. The most disappointing feature of
cotton cultivation is that country accounts for only 10 percent of the particular, fluctuations in
the prices of raw cotton are two major causes of sickness and consequently closure in the
textile industry. Problem of power. The textile industry in our country had suffered badly for
want of adequate the industry badly. The inadequacy of coal supplies had also southern India.
Load shedding had been one of the serious problems of the industry.
OBSOLETE MACHINERY AND NEED FOR MODERNIZATION
The mill sector has been working with obsolete machinery. According one estimate,
over 80 percent of the machinery in the cotton textile mill industry has to compete with
countries like Taiwan, Hong Kong, South Korea, etc., all of which are using the latest
sophisticated machinery.
The industry, however, has no resources for the huge task of replacement and
modernization. The Government and the public sector financial institutions will have to
provide the necessary funds for this purpose. The Government set up in 1986 the Textile
Modernization Fund pof rs.750 corers and asked the IDBI to operate it.
HIGH COST AND COMPETITION IN FOREIGN MARKETS
The Indian cotton textile industry has been facing increasing competition in world
markets. This is largest due to low production and high cost and consequently high price of
Indian cotton textiles. It is paradoxical that in a country where wages are low and cotton is
internally available, production cost should be high. But the advantage of lower wage is
offset by higher cost of raw materials and inefficiency in production caused by the use of
outmoded machinery. In this context it may be noted that where as wages and salaries
account for only 16 percent and process materials 20 percent of production costs. The
industry badly needs replacement and modernization. While India’s major Indian textile
6

7. industry is saddled with obsolete machinery. Modernization and rationalization the industry
cannot improve the quality of its products and also offer them at competitive rates.
It is, however, important to emphasize the new challenges the textile industry has to
face in the sphere of exports. With increasing of textile and cloth industry into the world trade
regime, Indian textile exports will have to cope with the problem rationalizations of trade
between blocks of regions, child labors, and dumping levies, etc.
COMPETITION FROM THE DECENTRALIZED SECTOR
An important factor for the growing sickness of the mill sector is the growth of the
decentralized sector. Being a small-scale sector, the Government allowed excise concisions
and other privileges, such as exemption from the production of controlled cloth. The worker
in the power loom sector were either not organized or organized loosely, so that the level of
wages in this sector was must lower then that in the mill sector. Often, the decentralized
sector made use of the names of the well-known mills and outsold the latter.
The textile industry exhibits peculiar characteristics – some units like Reliance
Textile, Mafatlals are doing extremely well, while many other faring miserably. The industry
is facing both short-term problems of the industry are high prices and shortage of raw
materials, liquidity problems due to poor sales and large accumulation of stocks as a result of
poor demand. The long-term problems of the industry are the slow pace of modernizations of
age old plant and machinery, outdated technology resulting in low production, high cost of
production, low profitability and increasing sickness.
7

8. 8

9. CHAPTER NO:
3
COMPANY PROFILE
CHAPTER – 3
COMPANY PROFILE
3.1 INTRODUCTION ABOUT THE COMPANY
Krishnakanth Spinning Mills Limited was incorporated as a private limited company
on April 4, 2005 under the companies Act 1956.
This Mission “Production of cost and effective quality yarn, producing the product to
the International standard and customer satisfaction through flexible and manufacturing,
assured quality shipment”.
Installed capacity of the company was 2940 spindles initially which has been
increased from time to the present level of 10,084 spindles. For doubling the capacity is 1,200
spindles.
Manufacture of polyester cotton blended yarn.
9

10. 3.1.1 KRISHNAKANTH SPINNING MILLS
1. Produces 70% cotton and 30% polyester yarn.
2. Quality classified under 5-10% user international standards.
3. Medium scale industry.
3.1.2 GOALS OF THE COMPANY
 Striving for excellence in every sphere of company’s activities.
3.1.3 QUALITY POLICIES
1. Good Quality
 Best, which saves the cost the time for the customers
2. Best service
 Customer friendly in fulfilling their requirements.
3. Steady Development
 Up-gradation in technology and diversification for value addition.
10

11. 3.2 PROFILE OF THE COMPANY
KRISHNAKANTH SPINNING MILLS LTD
1.Name and Address of the company KRISHNAKANTH SPINNING MILLS
Sirumalai salai, rettiyapatti post,
dindigul-624009
2.Registered and Administrative Office Dindigul
3.State in which the company is registered Tamil Nadu
4.Status Private Limited Company
5.Year of the commencement 2005
6.Type of industry 70% Cotton and 30% polyester Yarn
Production
7.Mill Location Sirumalai salai
Dindigul-624005
8.Subsidiary a)Shanmugavel Spinning Mill
vadamadurai,
Dindigul.
11

12. 9.The Management DIRECTOR
Mr. A.Krishnakanth
10.Company Secretary Sri.K.kannan
11.Financial Institutions PRIVATE FINANCE INSTITUTION
TATA Institution,
City financial Institution,
GE money Institution,
ICICI….
GOVERNMENT FINANCE
INSTITUTION
Tamil Nadu Industrial Investment
corporation
12.Bankers State Bank Of India , Salem
Allahabad Bank Ltd., Salem
12

13. CHAPTER NO:
4
13

14. ORGANISATION CHART
CHAPTER – 4
ORGANISATION CHART
14
PROPRIETOR
FACTORY
MANAGE
OFFICE
MANAGER
PRODUCTION
SUPERVISOR
MAINTENANCE
SUPERVISOR
ELECTRICAL
SUPERVISOR
QUALITY
CONTROL
HR
STORES FINANCE
MAISTRY
FITTER
ELECTRICIAN
OBSERVERS
ACCOUNTANT OFFICE
CLERK

15. 15
TENTERS
MAINTENANCE
GANGE
HELPER

16. CHAPTER NO:
5
dEPARTMENTS
16

17. PURCHASE
DEPARTMENT
CHAPTER - 5
DEPARTMENTS
5.1. PURCHASE DEPARTMENT
Purchasing refers to a business or organization attempting to acquire goods or services
to accomplish the goals of the enterprise. Purchase department takes care of purchase of raw
materials needed for the production. Purchasing managers and procurement managers guide
the organization’s acquisition procedures and standards.
The purchasing department normally issue Purchase Orders for supplies, services,
equipment, and raw materials. In the recent past the trend away from the daily procurement
function (tactical purchasing) resulted in several changes in the unit. The first was the
reduction of personnel. Purchasing department is now smaller. These professionals are now
not only focusing on the bidding process and negotiating with suppliers, but the entire supply
function. In these roles they were able to add value and maximize savings for organisation.
This value manifest in lower inventories, less personnel, and getting the end product to the
organization’s consumer quicker.
17

18. Purchasing manager’s success in these roles resulted in new assignments outside to
the traditional purchasing function – logistics, materials management, distribution, and
warehousing in the stores. Further the Stores department ensures that the materials are rightly
sent when needed.
The main requirement of raw material to input for a spinning mill is raw cotton. This
raw material is purchased and stocked by this department. The purchase department is
otherwise called as raw material department.
The purchase department is the department, which buys raw materials for production.
It is this department, which keeps always raw material in stock. It should always see that
there is no over stockage or deficit in stockage of raw materials.
Every month mill is sending cotton and polyester requirements to head office, based
on the requirement the cotton division of head office will send intimation showing the details
of procurement like variety of cotton, lot number, quantity and rate. Based on the intimation
from cotton division head office mill will receive the material and check the correctness of
mill receive from supplier with intimations.
At present the mill is procuring raw material for cotton within the state and also from
the up countries. For polyester they are procuring from Reliance Industries Ltd, surat. The
raw materials are purchased in the form of bale (pressed form) and borah (unpressed form).
The mode of purchase of the raw material are through agency and directly from the
supplier. And the mode of payments are cheque, against delivery and immediately after
receipt. The mode of delivery are free on road and spot.
In polyester there are 4 variety based on quality.
1) 1st
grade
2) Standard
3) PQ
4) Sub_Standard(SS)
18

19. REGISTERS MAINTAINED
1. Weighment book
Each and every bales received will be weighted and recorded in its register.
2. Mixing Instruction book
Variety, lot number, percentage for every count will be recorded in the book.
3. Mixing Issue’s book
This book shows the details of count, variety, lot number of bales, net weight and
issue of mixing.
4. Lot War book
For each and every lot received will be recorded in this book regarding lot numbers of
bale, quality and quantity in kgs , date of received, date of issues and balance quantity
available.
Stores keeping involves keeping of stocks, identifying and classifying them according
to their nature, type and sizes. It also includes proper maintenance of stock records. Proper
storage of goods is very essential for effective production planning. Just as purchasing
department is responsible for purchase, stores department is responsible for store. The store
department is a service department rendering service mainly to production and accounts
departments. In the organization there is a separate stores department under the control of the
storekeeper and he is assisted by one supervisor.
FUNCTIONS OF STORES DEPARTMENT
19

20. 1. Providing materials necessary for production.
2. Maintaining stock.
3. Maintaining stock during emergency period.
4. Initiating purchase department at suitable time about the stock of material, quantity
and other particulars.
Store department is closely connected with all other department. Its important
function is to supply the required materials to the concerned department. The store
department deals with machine, spare parts, oil, electrical items, etc.
FORMS USED
Issue of material are in the Indent form.
MATERIALS STORED
1. Packing materials
2. Belts
3. Fuel
4. Hardware
5. Cotton and polyester.
20

21. FUNCTIONAL CHART OF STORES DEPARTMENT
21
BILL OF
MATERIALS
STOCK
VERIFICATION
COLLECTION
OF SAMPLE
LEDGER
COST
CONSUMPTION
PURCHASE BOOK PRICE
NEGOTIATION
INTERNAL
RECORDS
QUALITY
VERIFICATION
RECEIPT OF
MATERIALS
PLANING
ORDER

22. 22

23. PRODUCTION
DEPARTMENT
5.2. PRODUCTION DEPARTMENT
Production department ensures that the effective and efficient pumps are
manufactured according to the specifications. This department is responsible for the entire
manufacturing process, turning raw materials into finished goods. Under the leadership of a
Production Manager it has to:
1. Identify the engineering or technical aspects of the production process
2. Assess how long it will take to plan production –Time reference
3. Monitor progress, carrying out work studies and quality inspection
Production Engineering ensures and
1. Determines how product will be made
2. Assesses what technical equipment is needed
3. Checks on standard of raw material
Production Planning focuses and
1. Identifies when production will take place
23

24. 2. Estimates length of production
3. Ensures raw materials are delivered on time
Controlling oversees and
1. Ensures production plan is being followed
2. Maintains quality standards
3. Monitors timescale
Production planning and Control guidelines of Sharp industries
1. If planning is not carefully co-ordinated production could slow down or even stop. The
company will lose money if workers and equipment are left idle due to raw materials not
arriving on time.
2. Physical resources and labour are the largest costs a manufacturing firm has. If they are
not used efficiently, the firm can lose money.
3. Companies carry out work studies to assess working practices. Wastage can be avoided if
the production process is monitored carefully.
Production is organized activity of transformation raw materials into finished goods
or products. It is a sequence of technical process.
Production department is controlled by factory manger under the authority of
supervisor, shifts in charge and quality control inspectors are under the control of head of the
department.
PRODUCTION PLANNING AND CONTROL
24

25. The production planning consists mainly of the evaluation and determination of
production means such as labour, machinery and equipments materials and utilize to achieve
the desired goods over a given period of time.
Production and planning control is the co-ordination of services of functions like
together according to the plan so that the movement of goods from the stage of procurement
of materials of finished stock may be resulted. It includes planning, ranking, scheduling,
dispatching and following of progressing functions.
FUNCTIONAL CHART OF PRODUCTION DEPARTMENT
25
FACTORY MANAGER
PRODUCTION SUPERVISOR
MAISTRY
TENTERS

26. PRODUCTION PROCESS
26
MIXING
BLOW ROOM
CARDING
DRAWING
SIMPLEX
SPINNINGCONE-WINDINGPACKING

27. MIXING
Cotton is basic raw material used for the manufacture of yarn. The cotton and
polyester are mixing in the type of layer.
1st
layer - polyester 50 kg
2nd
layer - cotton 14 kg
Wastage - 2 to 5 kg
It is useful and maintains uniformity is length and colour.
BLOW ROOM
The main work of blow room is to clear and open the bale of cotton and polyester. In
this stage, the compressed cotton is opened and removed all the imparities present and made
in the form of sheets. Then it is wound on the spindle rod in the form of roles, which is called
hap.
27

28. CARDING
Lap from blow room is fed and pass over through cylinders then it is turned in the
form of web. The web is converted into sliver by means of calendar roles, the trial output is
called sliver.
DRAWING
It strengthens the fibers in the sliver and arranges in a parallel manner. The main
function of the drawing is to improve the uniformity of the sliver and to remove the hooks in
the sliver.
It is the key point where controlling of yarn count variation is done. The control of
average count can be effectively done by drawing also.
SIMPLEX
The end process of preparatory is simplex. The function is to convert the sliver into
threads that are wound on bobbins.
Here it reduces the diameters of the sliver by drafting through drafting roles. Then it
wound on plastic bobbins.
SPINNING
Yarn is made actually by obtaining roving yarn into required count of yarn passing
through spinning machines. Here it is converted into required count of yarn by the drafting
rollers. Finally it is wound on ring bobbins.
The most important department is textile industry is the spinning. The spinning
department is where the yarn is manufactured by spinning and wound the threads on the
bobbins.
28

29. The friction of spinning department is twisting and then winding the twisted fiber into
the bobbins.
CONE WINDING
The process of transforming the yarns into cones. The yarn being built up in the cops
is being again removed and are wound on cones and the winding of the yarn is called cone
winding.
The main function of cone winding is to wind the yarn into cones from the cops by
strengthening the yarn by the process of winding.
PACKING
The cones are being weighted and labeled and then packed in polythene bags and then
put it into bags or cases. They are arranged in the form of bales and addressed the necessary
details.
MATERIAL HANDLING EQUIPMENTS
1. Bale trolley
2. Cone trolley
3. Bobbin trolley
4. Doff trolley
29

30. TYPES OF MAINTENANCE
30
MAINTENANCE
GENERAL CLEANING PERIODICAL
MAINTENANCE
MONTHLY QUARTERLY HALFERLY ANNUALY

31. 31

32. QUALITY CONTROL
DEPARTMENT
5.3. QUALITY CONTROL DEPARTMENT
Quality control department guarantees that the raw materials thus acquired are of the
required quality and standardized by relevant testing so that finished goods are of intended
quality. The quality control department carries out inspections where random samples are
tested to ensure standards are met.
Sharp focuses on Total Quality Control which is the most important inspection control
of all in cases where, despite statistical quality control techniques or quality improvements
implemented, sales decrease. If the original specification does not reflect the correct quality
requirements, quality cannot be inspected or manufactured into the product. Under traditional
quality control, inspection of products and services (checking to make sure that what's being
produced is meeting the required standard) takes place during and at the end of the operations
process.
There are three main points during the production process when inspection is
performed:
32

33. 1. When raw materials are received prior to entering production
2. Whilst pumps are going through the production process
3. When pumps are finished - inspection or testing takes place before products are
dispatched to customers
QUALTY CONTROL
Quality control is the watchword in a modern industry as if affects the user need as
well as portability especially in the competitive industry like textiles. To help efficient
functioning of quality control the methodology and procedure that need to be adopted have
been well formulized and systematized.
Quality holds a key to the marketing success of a mill in the competitive economy
that is fast emerging in our country. It is determined by the cost of raw cotton, and the
amount of yarn relished per kilogram of cotton consumed. By minimizing the cost of cotton
and maximizing the yarn realization it is necessary to ensure that the yarn spun is of desired
quality.
“Quality” refers to conformance to the agreed upon requirements. The company using
following quality control.
• Grains Balance
Used to find out the weight of the carding sliver, drawing sliver, simplex sliver
and yarn.
• Grams Balance
Used to find out the sliver weight in terms of gram.
• Leo Strength Tester
33

34. Used to find out the strength of the yarn.
• Yarn Wrapper
Used to find the strength per Leo.
• Yarn Twist Tester
Used to find the twist per inch.
• Yarn Bound Testing
Used to find the imposes in yarn.
• Sliver Roller
Used to find out length of the sliver in terms of yarn.
MAINTENANCE
“Prevention is better than cure” , so the company following preventive
maintenance. System for which they are spending 6 to 8 hours per week for maintenance
purpose. Factory maintenance is under the control of a Factory Manager and Assistant
Factory Manager.
FUNCTIONS DONE BY QUALITY CONTROL DEPARTMENT
1. Preparing daily, monthly, fortnightly reports.
2. Testing and maintaining sample yarn details.
3. Entering the sample details everyday.
4. Maintaining upto date yarn results.
5. Comparing the yarn results.
6. Giving details about mixing particulars.
7. Checking the count, hank for yarn.
34

35. 8. Checking quality standards.
STANDARD QUALITY NORMS
• Lap CV - 1%
• Card Sliver CV - 3%
• Drawing Sliver CV - 1%
• Bobbin CV - 1%
• Spinning
 Count CV - 3%
 Strength CV - 7%
• Cone weight - 1.5 kg
INTERACTION WITH VARIOUS DEPARTMENTS
The quality control acts as the center for all the department. It gives quality assurance
reports and suggestion to various departments. Based on the report given by the quality
assurance the production department will act according to it.
Four types of reports are maintained by the Quality Control Department such as
monthly, fortnightly, daily and weekly reports.
Working process statement about the production stages are given as the monthly
report.
The daily cost, preparatory efficiency report is given to manager.
Yarn list result are given to general manager and general letters are given as daily
reports.
Cotton list result (average parameters for every mixing), cotton remaining stock
balance report, utilization report for HR Department are given as weekly reports.
35

36. INTERACTION OF QCD WITH VARIOUS DEPARTMENTS
36
HEAD OFFICE
(GM)
HR
DEPARTMENT
PRODUCTION
DEPARTMENT
STORES
DEPARTMENT
SALES
DEPARTMENT
QCD

37. FUNCTIONAL CHART OF QUALITY CONTROL DEPARTMENT
37
QUALITY
CONTROL CHIEF
QUALITY CONTROL
MANAGER
ASSISTANT
MANAGER

38. 38
SUPERVISOR
WORKERS

39. FINANCE
DEPARTMENT
5.4. FINANCE DEPARTMENT
Finance department takes care of all the monitory transfers of the firm. The three core
functions of the Finance Department are to:
1. Provide strategic financial support for business and operational planning.
2. Provide day-to-day financial services to the University, its departments, students and
staff.
3. Meet external and internal financial reporting requirements.
Further the Finance department plays various roles in the domains of Finance,
accountancy and Economical business transactions. The supplementary functionaries include-
1. Preparation of budget, appropriation of accounts, re-appropriations, surrender and
savings.
2. Control of expenditure and ways & means position.
3. Audit and Treasury administration
4. Administration of Taxes i.e. Sales Tax, Entertainment Tax, Luxury Tax and Entry Tax etc
39

40. 5. Service Conditions including Freedom Fighters Pensions.
6. Resource mobilization through loans, Institutional Finance, Small Savings, Credit and
Investment and public debt.
7. Safety and investment of funds from consolidated funds, contingency fund and public
account.
8. Contract, recovery and refund of revenue, financial concurrence and advice.
9. Compilation of Codes, Rules and procedures concerning financial transactions and having
bearing on State finance and their implementation.
VARIOUS SECTIONS OF ACCOUNTS DEPARTMENT
1. Cost and Budget.
2. Export Section.
3. Bill section.
4. Pay section.
5. Tax section.
6. Audit section.
COST AND BUDGET
The Main function of this section to ascertain production cost. Every department has
to prepare its own cost and budget according to their requirement.
EXPORT SECTION
While export the plant maintains three main documents they are bill of loading,
invoice, packing list for getting money from the bank. The exporting product will be
insurance.
40

41. EXPORT INCENTIVE GIVEN BY GOVERNMENT
1. Advance license Scheme
The government allows company to import materials without custom duty for same
export of the product. After getting this scheme within 18 months we have to import and 24
months we have to export after getting the license.
2. Duty Drawback
Duties have been paid while import and showing the proof of paid and getting back
the money.
There are Categories…
One physical export, second one is deemed for both categories no custom duty is paid.
Encourage given by government
1. Loan given by government in foreign currency.
2. Pre-shipment credit will be given in foreign currency through bank.
3. Repay of loan through export bill within 8 months. If not penalty of 2-10.5 within a
year, it will be change the date of loan.
4. Directional general of audit will look after this section scheme.
BILL SECTION
41

42. Every bill is paid through State bank of India. Each and every expenditure will settled
by this section. Any miscellaneous settlement will also be settled by this section.
This section will make payment of salary and wages to employee. Every month 7th
the
pay will be credited in employee account. If any delay it has to responsible. After one year of
service employee is eligible for pf. Here 24% is PF and contributed by employee or
employer.
TAX SECTION
Tax section will take care of tax involved in the plant. In employee tax deducted
source will be credited.
AUDIT
1. Statutory audit
• Yearly twice.
• Outside auditors will audit.
2. Internal audit
• Separate audit department inside the plant.
• This for entire plant.
3. Government auditors will audit separately.
42

43. DUTIES OF ACCOUNTS DEPARTMENT
 The Accounts Department looks after the customers due date and informs it to the
management.
 The invoice sent by the Sale Department is being received and it is being entered in
the day book.
 It preserves the day book and entered all the transactions that have occurred on the
particular book.
 The trial balance is being prepared to check the accuracy of the concern.
 It checks the cheque for the bills of exchange. All the payments are made on the basis
of cheque.
 They have to maintain cashbook, bank book, purchase book, sales book and store
purchase book.
43

44. MARKETING
DEPARTMENT
5.5. MARKETING DEPARTMENT
MARKETING
Marketing as a functional area of management is becoming increasingly important as
compared to other field such as production, finance, personnel and research & development.
The increasing significance of marketing is that marketing information has gained the present
pivotal place of importance. All the decision in modern business organization revolve around
the marketing information. It is a human activity directed at satisfying needs and wants
through exchange processor.
IMPORTANCE OF MARKETING
Customer satisfaction depends on a products perceived performance. Outstanding
marketing companies go out of their way to keep their customers satisfied. Satisfied customer
make repeat purchases, and they tell others about their good experiences with the product.
Many companies have adopted total quality management programs, designed constantly
improve the quality their products, services and marketing process.
44

45. CUSTOMER SATISFACTION
Customer satisfaction is closely linked to quality. Many companies have adopted total
quality management programs, designed constantly improve the quality their products,
services and marketing processes. Quality has a direct impact on product performance and
hence on customer satisfaction.
Today Companies are facing tough competition. The customers have a wide choice of
brands to select from. In order to survive the competition, the companies have to do a better
job of meeting and satisfying customer needs than their competitors.
According to Philip Kotler “Satisfaction is a person’s feeling of pleasure or
disappointment resulting from comparing a products perceived performance in relation to his
or her expectation”.
1. IMPORTANCE OF CUSTOMER SATISFACTION
This need to satisfy customer for success in any commercial enterprise is very
obvious. This income or all commercial enterprise is derived from the payments received for
the products and services supplied to its external customers if there are no customer, there is
no income and there is no business. In other words, customers are the sole reason for the
existence of commercial establishment.
Thus the core activity and perhaps one of the most important activities of any
company is to attract and retain customers. The renowned management guru has said “To
satisfy the customer is the mission and purpose of every business”.
2. REQUIREMENT OF CUSTOMER SATISFACTION
Since Customer satisfaction is an important goal of any marketing program. It
becomes necessary to establish factors which help to satisfy the customer, the important
factors are:
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46.  Quality
 Fair price
 Series consideration of customer complaints
QUALITY
Is the totality of features and characteristics of a product (or) service that bears on its
satisfy (or) implied needs, we can that the seller has delivered quality whenever the seller
product or service meets and exceeds the customers expectation. Thus quality must be
perceived by the customer.
Quality must be reflected in every company activity not just in company products,
quality should be reflected in advertising services, product literature, delivery, after sales
support and so on. Quality is absolutely for customer satisfaction because customers are
becoming more demanding.
FAIR PRICE
It is very important to satisfy a customer, price is actually the cost of a product or service
paid by the customer. Price should therefore commensurate with the offers perceived value. If
it is not, buyers will turn to competitors product.
SERIOUS CONSIDERATION OF CUSTOMER’S COMPLAINTS
Complaints should be considered and resolved promptly at the time the fault may be
entirely with the customer. In such cases a responsible action needs to be taken. The total
fault may also lie with the company and it is this situation there should be no sifting the
blame. Instead the company should leave aside its ego and look into the complaint and
resolve it or compensate for it. This would keep the customer satisfied.
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47. Marketing department make certain that right product reaches right people at the right
time and right place. Marketing Department typically deals with the embracing the tactics of
creating meaningful messages through words, ideas, images, and names that deliver upon the
promises / benefits an organization wishes to make with its end users. Furthermore, the
Marketing Department ensures that messages and images are delivered consistently, by every
member of the organization Marketing and Sales Department is responsible for-
1. Focus on the Customer and agents
2. Monitor the Competition
3. Own the Brand and Goodwill.
4. Create New Ideas.
5. Manage a Budget.
6. Understand the ROI.
7. Set the brand marketing strategy
8. Plan to manage competition and execute
9. Communicate Internally
The mill believes in quality and is practicing not product marketing but quality
marketing. It helps customers in understanding his quality requirements so as to get benefit of
time and cost savings to both the mill and customers.
Mill is producing cotton yarn and synthetic yarn according to demand existed in the
market. Every week yarn processing committee will decide the rate for each count. Marketing
division will inform the mills about the quality allotted to depot keeper along with counts and
rate. Mill will dispatch the yarn to the depot keeper as per the instruction received from the
market division. The depot keeper will sell the goods to the customer and remit the sales
process to the mills within 7 days from the date of sale made by him. For the belated
remittance for the depot keeper mill will change over due interest from the 8th
day upped the
date of actual payment at the rate of 24% per annum.
The depot keeper will raise the invoice for the sales made by him. Mill will account
the sale invoice raised by depot keeper after verification.
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48. The appointment of depot keeper will be reviewed every year based on his last one-
year performance by a committee appointed at head office.
Normally goods are being sold through depot keeper appointed at the centers.
PROMOTION POLICY
New counts are being introduced according to the recommendation given by the depot
keeper.
AFTER SALES SERVICE
Trained technicians are available at every to rectify any defect of the product.
DOMESTIC AND INTERNATIONAL
Most of the goods have been sold at up country. If any enquiry regarding export will
suitable considered.
DOCUMENTATION
At the time of dispatch of goods mill is preparing central invoice and form 20 to
combine with the lorry.
CREDIT SALES POLICY
There is no credit sales policy.
TAX PROCEDURE
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49. Collection, remittance, filing, return to sales tax authorities is the responsibility of the
depot keepers.
ROLE OF MARKETING
• The marketing department places the quotations to the other concerns to
receive orders.
• The main purpose of marketing is to advertise the product in the market.
• The Confident Engineering is being advertised in newspapers because it
is essential commodity, effective advertisement is necessary.
• The promotion of sales is the main goal of the marketing department.
• Marketing praises the buyers for a routine service.
• The company collects order from the leading textile manufactures making
use of job cards.
• The production department produces impellers as specified in the job
cards. The sales are under distribution channel.
PRICE SETTING PROCEDURE
The steps involved in price setting include:
 Development of pricing objectives
 Determination of demand
 Estimation of costs
 Examine competitors, costs, prices and offers.
 Selecting a pricing strategy
 Selecting a pricing method
 Final price decision
The Marketing Department performs all business activities and function to advertise
the products of the company and fetches orders.
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50. FUNCTIONAL CHART OF MARKETING DEPARTMENT
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MERCHANDISER
MARKETING
MANAGER
DEALERS
AGENTS

51. HUMAN RESOURCE
DEPARTMENT
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52. 5.6. HUMAN RESOURCE DEPARTMENT
HR department maintains all the records of the company and the employee for their
recruitment stage to the retirement stage. Human resource management strategy maximizes
return on investment in the organization’s human capital and minimize financial risk. Human
Resources seeks to achieve this by aligning the supply of skilled and qualified individuals and
the capabilities of the current workforce, with the organization's ongoing and future business
plans and requirements to maximize return on investment and secure future survival and
success.
Typically personnel work is concerned with:
1. The recruitment and selection of new employees, e.g. helping to prepare job
advertisements and job descriptions for new posts, and helping to organize the
interview process.
2. The induction of new employees where they are introduced to the company, and
aspects of the job they will be doing as well as essential requirements such as health
and safety training.
3. Training and development. Training focuses on the needs of the organization where as
development is more concerned with identifying and meeting the needs of individual
employees.
4. Organizing the appraisal process to identify development needs of employees.
5. Representing the organization as a go between on disciplinary issues e.g. when a
worker has continuously been late for work. Dismissing and making workers
redundant where necessary.
6. Managing payment systems.
7. Taking responsibility for the motivation of employees by outlining motivational work
practices.
8. Organizing the termination of work and retirement of employees, as well as job
redundancies where appropriate.
Personnel department looks after the welfare of the employees. At present around 200
employees are working here, Which includes both permanent temporary men and women.
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53. Classification of workers as per standing order of a company.
1. Permanent
2. Probationary
3. Causal
4. Temporary
5. Apprentice
CANTEEN
Canteen facility is also provides to employees. In food subsidy in provided upped
35% to the workers. So every employee are getting food in lower price.
WELFAIRS
It is the duty of the welfare officer to maintain and promote a minimum standard of
life for all workers. Labours act provides for cleanliness, disposal of wastes, ventilation and
lighting of the machinery. The factory is kept clean and free from dust.
VARIOUS WELFARE MEASURES
1. First aid centre
2. Safety
3. Canteen
4. Saving Scheme
5. Rest Room
TRAINING AND DEVELOPMENT
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54. They give training for the employees if there is any need, recommended by the
HOD’s or their department. If any new thing is updated they give training to the employees
either internally or externally. They also giving training for the employees who appearing for
the executives exams.
The training for the executives is given by corporate office of Management Training
Institute, and for the non- executives given local bodies.
More training given to employees handling the systems.
PERFORMANCE APPRISAL
Based on the performance of the employee the appraisal is given.
For the executives level the performance is monitored through on-line by corporate office and
for non- executives level the performance is monitored locally by their HOD’s. Their
performance is marked in the rating scale as excellent (5), very good (4), good (3), bad (2),
and very bad (1).
Based on the score and their activity the promotion and hike is dependent.
One who excel in his job he was appreciated by giving awards and rewards.
EMPLOYEE BENEFITS
The welfare facility is beyond the Factories Act i.e., they have medical scheme,
settling the dues immediately, housing, advance for the vehicle and building house(by
corporate office) and health care facilities. Apart from this they have sports activities,
gymnastic, school for their children, park, swimming pool, etc.
Compensation system for the employee during the work and paid leaf due to injury.
HUMAN RESOURCE DEPARTMENT
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55. The department resource department takes care of recruiting , orientation, placement,
training, attendance, payroll of the employees. Time office is also a part of the department. It
is a strict policy of the company not to employ people below the age of 18. The department
manages the employees of all the units is in constant contact with the management. It
communicates the demand of the employees to the management. If there is anything that
equals the sophistication of the production facilities, it is quality of its motivated and
adequately trained managerial and non-managerial cadres of human resource.
HR POLICY
• To enhance employee productivity attuned to business goals.
• To promote a work culture which encourages the employees to contribute their best.
• To Strive for making a meaningful difference in the quality of life of employees.
• To develop proactive and customer focused HR team engaged in continual innovation
and change management.
HR CHALLENGES
• Continuous right sizing and restricting to meet strategic business objectives.
• Development of employee competencies through comprehensive HRD initiatives.
• Maintain productive industrial relations through assertive but responsive
management.
• Fostering an organizational climate which facilities employee involvement &
motivation.
• Develop effective communication channels and platforms.
• Nurturing employee creativity and innovation
• Operate a wide range of motivational schemes.
• Provide facilities and services to employees.
HEALTH AND SAFETY
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56. 1. Identifying occupational health and safety (OH&S) hazard to eliminate/ control
/reduce the risks.
2. Formulating OH&S management programs to improve OH &S performance and
3. Implementing them through involvement of all employees
4. Complying with applicable legal and other requirements. Communicating OH&S
policy to all employees and interested parties.
5. Providing appropriate structured training to employees on OH &S aspects.
6. Reviewing the occupational health and safety management and system periodically
for its effectiveness and continual improvement.
Minimum wages as per the government notification is paid to the workers. Based on
the qualification and experience other wages are paid Hourly wages is being paid to the
employees, hourly wages or minimum wages whichever is higher is paid to the employees.
Each employee is given an identity card with a barcode behind the card. The barcode
is shown against the barcode reader for it to read the code and the code is transferred to the
computer. The time the code is read is monitored on the computer.
At the end of every month or before the payment of wages, attendance is entered in
the muster roll for the calculation of wages. The amount per employee is calculated based on
the number of hours worked by the employee. The wages of all the employees of all the units
is calculated and the total wage amount payable is forwarded to the accounts department on
the 4th
to received the required amount to pay the wages. If any leave taken by the employee
i.e. earn leave or medical leave after its been approved the payment of wages for those
particular days is paid.
Training is normally given by the respective supervisor’s to the fresh employees or
the new entrants.
The shift timings of the employees are as follows:
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57. • Shift 1-8:00 am - 4:00 pm
• Shift 2-4:00 pm - 12 :00 am
• Shift 3-12:00 am - 8:00 am
OBJECTIVES
• To regulate the employment of contract labour in certain establishment and to provide
for abolition in certain circumstances.
• Contractor is a person who undertakes to produce and give result through contract
labour or who supplies contract labour for work.
• Not applicable to establishment in which work is only of an intermittent or casual
nature.
• The establishment-engaging contract labour register with the authority; so also the
contractor must get a license from the licensing officer to undertake or execute any
work through contract labour.
• Government can prohibit the contract labour in any process or work considering the
conditions of work and other benefits provided in the establishment and taking into
account whether the process is necessary or incidental to the industry; whether it is of
perennial nature, whether it is ordinarily done through regular workmen and whether
it is sufficient to employee considerable number of whole time workmen.
WAGES
1) The payment of Wages Act, 1936
• To ensure disbursement of wages to workers within the prescribed time
limit and without deduction not authorized by law.
• The wage period shall not exceed one month.
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58. 2) The Payment of Bonus Act, 1965
• To provide for payment of bonus on the basis of profit or on the basis
of production.
• Guarantees minimum bonus of 8.33% and a maximum of 20% of the
wages/salary.
• Employees is entitled to bonus is an accounting year if he has worked
for not less than 30 working days.
3) The Equal Remuneration Act, 1976
• Provides for equal remuneration to men and women workers.
• No discrimination in recruitment on the ground of sex except for the
employment of women in such work, which is prohibited or restricted
by or under any law.
SOCIAL SECURITY
1) Employees’ State Insurance Act, 1948
• Provides for certain benefits to employees in case of sickness maternity
and employment injury.
2) The maternity Benefits Act, 1961
Applies to women who has worked not less than 70 days in the 12th
months immediately proceeding the date of her excepted delivery and entitled
for full wages.
• If the factory covered under ESI, but the women not entitled under the
Act, will be entitled t benefit under this Act.
• Maximum benefits – 12 weeks – prohibits employment of women
during the period of 6 weeks immediately following the day of
delivery or miscarriage.
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59. CLEANING AND MAINTENANCE
Implementation of effective cleaning and maintenance programme helps to produce
improved quality of products, longer life for machine parts, better and improved working
conditions, less fly liberation, less breakdown and repairs, low accident, etc.
Rapid changes in technology of latest and most modern machines warrants for
effective cleaning and maintenance programme to attain higher rates of production and good
quality of yarn.
Mills are ways and means for implementing the new cleaning systems and procedures
for improving machines working performance. Introduction of internal cleaning especially
for ring frame drafting zone helps in maintain the cleanliness and improves the utilization.
The cleaning and maintenance is based on the number of machines available in each
department their age, type of cleaning and maintenance schedule followed, and man-hours
allotted for each activity. Mills need more personnel.
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60. CHAPTER NO:
6
CONCLUSION
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61. CHAPTER – 6
CONCLUSION
The Practical Training Programme at KRISHNAKANTH SPINNING MILLS,
DINDIGUL equipped me to have real life exposure to all the functional areas. It also gave
me a lot of knowledge and new experience of the company. I found this summer training
immensely useful to correlate what has been learnt by me inside the classroom during my 1st
year MBA programme at the Department of Management Studies of Karpagam College of
Engineering, Coimbatore.
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