CHAPTER -I

INTRODUCTION

The glorious Indian industrial past was related with cotton

and silk goods, jewels, embroideries etc. After independence, large scale industries

especially in consumer goods like cotton textiles, jute and sugar had registered

significant growth. Large scale industries are those which require huge capital

investment and long growing period.

Large scale industrial sector is one of those sector that paved the way for

economic growth in a country like India cotton textile industry is a major large scale

industry and contributed one fifth or 20% of the total industrial output of the country.

The cotton textile industry has three main divisions. They are:-

1) The mill industry producing yarn & cloths

2) The power loom factories producing clothes from mill made yarn

3) Widely dispersed handloom units producing cloth both from

mill made and hand spun yarn.

The present study of an organization like Vijaya Mohini Mill, Tirumala.

Thiruvananthapuram, one of the leading national textile Corporation units in Kerala,

is an eye opener to the various obstacles being faced and the future prospect of

industry.

Objectives of the study

To study in detail the entire structure and functioning of the company.

To make an analysis of the organization’s performance.

To understand about the functioning of each department in detail.

To understand the extent to which management theory matches with actual practices.

Significance of the study

           In today’s world, business has become more and more competitive and

the technology has changed the nature of business and organization. This study

analyses in detail about the functions of different departments on the basis of which

strength, weakness, opportunity, and threats are arrived at. The finding of study

would give valuable information for improving the overall performance of the

organization. 

Research Methodology The main sources of data

are primary data and secondary data. 

Primary Data:

Direct Interview

Observation Expert Opinion

 Secondary Data

Annual Reports Websites Journals and Magazines Catalogue

Limitations of the study

The busy schedule of the department heads restricted the collection of

detailed information.

Secondary data obtained is not that much reliable.

Time to time company meetings also restricted the visit to several

departments.

The confidentiality restricted the collection of financial accounts.

CHAPTER II

MANUFACTURING PROCESS

PRODUCTION CHART

BLOWING

BLOWI

NG

CARDING

COMBER

SIMPLEX

SPINNING

WINDING

PACKING

GODOWN

DRAWING

MIXING

BLOWI

NG

MI

BLOWI

NG

BLOWI

NG

MANUFACTURING PROCESS

Production department function directly under the factory manager. It

consists of factory engineering department and stores department.

1.MIXING

At the first stage of production process hand stock mixing is done. The bales

are taken in the ratio of 70:30, ie 70% polyester & 30% of cotton.The bales are

arranged as layer by layer. The process is done in a a special room called mixing

room, which is in a lower tempter than that of the normal room temperature.

2.BLOWING

The raw cotton receved from the godown is opned and cleanedin the blow

room to remove its impurities.For this purpose machine s named Trutzchler and

Lekshmi Reiter’s are installed,which mixes the cotton and is them converted into

regular shells calld lap by the blowroom machinery.A colour is added to identify the

polyester failure.

Machines using here are BO-1200, MFC , MPM-8, ASTA-800, CVT1-1600,

LVSA-B. MPM-8 receves cotton from MFC at 100% and supplied to ASTA at 20%.

The CVT1 Machine runs at a speed of 690 rpm. The minimum speed is 570rpm and

maximum is 1000rpm.

3.CARDING

This process seperates the cotton fibers from impurities and removed short

and immaturefibers. The carding engine delivers cotton on a filling web which is

collected together to form a loose rope of fibers called ‘Silver’. These silver as a

product is stored in cans. These silvers are collected in coir cans. Carding machine

used here is ‘Lekshmi Rieter . There are 35 semi high production carding machines

and 7 high production carding machines. Macines using here is FBK-553, DK 800,

KHL 600 and Lekshmi Rieter.

4. COMBER

Objective of the comber is to remove short fibers , lambs and impurities

present in card silver. When the silver is passed through the comber machine, the

short fibers are unmoved and thus larger staple length can be optained. Comber

functions as to remove fiber hook and parallalise the fiber, to bring about fiber to

fiber seperation and to remove short fibers.

5.DRAWING

The ‘silver’ lacks uniformity and so silvers are processed in the drawing

frame. Here the silvers are made uniform in thickness by doubling process and fiber

gets drawn straightened by drafting process.

Hence both doubling process and drafting process are taken places. Doubling

is done to improve the uniformity of the fiber, parallelisation of the fiber is achieved

through drafting ie, without breaking continuity.

Silver from cardig are stretched or down in states by passing them through a

drawing frame. Eight carding silvers are converted into one silver through the

drawing frame, and it is more narrow in which fiber have been blended and aligned

more closely. Lekshmi Rieter model no Do63 and Trutzchler, model No. HSR 1000

etc are used here as drawing machines. There are six such machines.

6.SIMPLEX

The level of ‘Silver’ determines the quantity of the yarn spin. The silver

drawn from the drawing departments are to be thinned out into a bobbin to suit the

yarn to the spin.the process of converting the silvers is done in the fry frame

department.Simplex machines used are model JINGWEI, JWF-146.

The product here is called Rover and it is passed to spinning section.

7.SPINNING

Spinning frames convert the roving receved from simplex machine into yarn

of receved count. Here each bowan is converted into 8 corps. Each of the bowan has

2kg. Spinning frame need24000wts power for working. 29 spinning machines are

working in this section and 51 workers at day shift. Spindle capacity of the present

machine is 864.

8.REELING MACHINE

The yarn prepared by the reeling machine is called hank yarn. The hank yarn

is for handlooms only. The company has stopped producing hunk yarn as it is under

contious loss.

9.WINDING MACHINES

There are eight machines and all are the automatic ones. The machines are

known as autocones.. Each macines have the capacity to produce 120. The machines

used are from Textool and Brad corner. Machines from Brad corner have the speed of

640ypm. Minimum is 80 and maximum is 720ypm. Autocorner machine have the

speed of 1050ypm.

10.PACKING

Cones are packed by using polythene bags of 50 in number and stiched with

grows weight 52 Kg and net weight 50Kg. The product is known by the brand name

’Mohini warp’ blended spun yarn and has its market mainly in Bombay.

QUALITY CONTROL DEPARTMENT

There is a statistical quality control department to check the quality of

the yarn.

The quality policy of the company reads:-

“To manufacture and supply yarn in conformity with agreed specifications

maintaining delivary schedule to the full satisfaction to its custmers.”

The company aims at continual improvement of quality of yarn.

The measures adopted are:-

By adhearing to an effective quality management system.

By creating awareness among all the employees about the importance

of quality measurement system.

By creating most congenial and healthy working enviornment.

The quality department supervises the quality from the blow room to the winding

section. The quality department in order to maintain the qualityof cotton which is in

bale form, conducts certain tests:-

The test to find out stample length

Strength test

Fiber fitness test.

Quality tests are carried out in the mills some are send to Regionlal lab, Banglore and

some to KSTC, Nellaymbalam.

ENGINEERING DEPARTMENT

It is under the production department. It has two section, a workshop and a

power house. An Assist Engineer is the in charge of the departnent.

The workshop undertakes all the maintance functions and installations of

machinery. The breakdown of the machines is prevented to an extent through

preventive maintance.

In this section, there are 11 workers , 5 workers in general shifts and 6

workers in each of the three shifts.

The Electrical Section include a generator. The Electrical section looks after

the power requirement of the mill. Eletricity is obtained from KSEB. There is a

separate transformer of good capacity inside the mill for this purpose. The power

supply of the entire mill is regulated by this department. Also a stand by generating

set of capacity is installed and maintained by depatment

STORES

The company maintains a storewhich has a storekeeper who is in charge and

under him there is a Senior assistant and a Junior asst. The store makes use of the bin

card system. A code number is provided for each material. The records are

maintained on the basis of Weighted avearage method.

The receipt procedure of the stores are as follows:-

1. .An indent is prepared by the concerned departments and sent to the

stores.

2. After collecting the indents quotations of lowest rate are accepted by a

committee consisting of General Managers, Account managers, and

Asst Engineer.

3. after accepting the tenders,purchasing orders are send to concerning

parties.

4. Received goods are inspectd by concerned depatments which is

certified by storeskeeper on Good Receipt Inspection Report.

5. There are alsosome central stores purchase items which are purchased

through the head office.

CHAPTER III -MARKETING

MARKETING AND SALES DEPARTMENT

Marketing consists of the strategies and tactics used to identify, create and

maintain satisfying relationships with customers that result in the value for both the

customer and the marketer. Every organization aims to promote its products among

the wholesalers through substantial sales orders.

Yarn, which is produced by the mill, is sold through whole sales. The sale

could be carried out only under the direction of NTC. A weekly meeting is being

conducted by them to decide selling price. Then it is informed to the depot keepers.

When the depot keepers reports back, officers are given to the purchase. Some direct

purchases are also being carried out in the company. If any private parties are

interested to buy the yarn for the price specified, that is informed to the head office

and after getting their suggestion to the sales could be made.

There is certain agency who buys the product directly from the mill,

they are:-

1. Piranha Agencies

2. Shaw Agencies

3. Sangeetha Agencies

4. Rajiv Agencies

The mill is under the loss for the past six years as that of the other competitors.

The textile industry itself is ailing due to the current and trend of high raw material

price and considerably low price for the finished products. A policy that could be

implemented for the profit making is to increase export. The mill is presently

planning to go for export, on competition of the implementations if the

modernization project.

SALES POLICY The success and

failure of a business depends upon its various sales polices for the selling

operation. The market division gives information regarding the design of various

policies. Now at present NTC has no policy.

SALES PROMOTION

Successful marketing will depend on having the right product, at right time at right

place with right promotion. The marketing activities can be made more effective or

efficient by designing the sales promotion. The yarn is effective tool for cloth

making, the effective tool for sales promotion; depend in the quality testing

experts. In V.M.M there is a quality control department for testing qualities. The

NTC mills objectives is to produce quality goods.

SALES FOR CASTING

With a proper fore casting company can achieve good training result and neglect

the loss. Since the demand for yarn is fluctuating in the market there are

fluctuations in the sales prices. Therefore proper sales forecast is not possible this

may be the great reason for the loss of NTC unit. The mill has plans for expanding

its capacity bid it is handicapped due to non availability of funds. There are two

types of section in mill. Credit society for getting loan and consumer society for

supplying provisions. Here apprentice training is compulsory, under Labor Act.

COMPETITORS

The mill is facing a high competition in the market. The

product of the mill lost its market due to poor quality. Some of the competitors

are:-

1. Muragan Mills, Coimbatore

2. G.I.N Textiles, Alleppey

3. Alagappa textiles mills, Trichy

4. Kerala Leksmi mill, Trichy

5. Parvathy mill, Kollam

6. Kannur Spinnig mill, Kannur

CHAPTER-IV

PERSONNEL DEPARTMENT

DEPARTMENT STRUCTURE

Personnel manager heads the department. Under him there is a head time keeper

and a security inspector. PF, ESI and canteen sections are also working under this

department.

PERSONNEL MANAGER

PF

ESI

CANTEEN TIME OFFICE

HEAD TIME

KEEPER

SECURITY GUARD

SECURITY

INSPECTOR

The Personnel manager is also in charge of welfare officer as there is no

separate post in the mill. Personnel department has the duty to look after the areas

including recruitment, selection, placement, training, promotion, long term

agreements,

administrating mills quarters, disciplinary actions etc.

The factory works 7 days in a week, 24 hrs a day with three shifts.

The shift timing: 7.30 AM to 3.30 PM

: 3.30 PM to 11 .30 PM

: 11.30 PM to 7.30 AM

STAFF AND MILL WORKERS

Type of works No required No available

Supervisors 13 6

Mill workers 363 212

Casual labors 170 170

Classical staff 16 20

Officers Required Available Remarks

General Manager 1 1

Factory Manager 1 1

Personnel Manager 1 1

Accounts Manager 1 1

Deputy Spinning manager 1

Asst Spinning manager 1 1

Asst Engineer 1 1

PERMANENT OFFICERS

The mill has 202 workers on roll.

Clerical staff on roll was:-20

Supervisors :-6

The actual requirement of the mill is 363 permanent workers for the full

production. The deficit of the workers is managed by appointing casual labors on

daily wages. Now the company has almost 170 casual labors on roll.

RECRUITMENT

The mill is being a sick industry; the company has banned direct

recruitment, and appointment of the officers. If the employees are divided into

categories A, B, C & D. A & B are managerial categories since 1992, there is ban

on direct recruitment, and C & D are workers and staff categories. The recruitment

in these categories is done through employment exchanges.

The retirement age is 58 and if the workers are appointed 1970 the age is 60

years.

SELECTION

After recruitment, selection is done by ascertaining the qualifications of

the candidate with job requirements. The selection is conducted on the basis of

1. Test

2. Interview

3. Medical examination

4. Appointment

After selection management will issue a memo, which is sent to the

concerned candidate indicating his/her selection. After this, they have to undergo

apprentice ship or probation to a certain period. The stipend during this period will

also be specified.

PLACEMENT

Placement is assigning appropriate job to candidates in the organization.

After joining the candidate must fill a bio-data from and an attestation from in

his/her own handwriting. The candidate should also submit a conduct certificate.

The time keeper will collect the required data relating to the person on the date of

joining and keep it on the service record of the person.

INDUCTION

After placement, the employee is given an induction by which he or she is

introduced to the co-workers, supervisor and exposed to process of production

pattern, discipline, standing orders etc of the mills.

Mill does not have a systematic implementation of induction

program. The personnel manager gives necessary instructions and guidelines

regarding the work. After this the newly appointed persons are guided by the head

of the section.

PROBATION

After placement the employees are given certain period of probation. Here the

probation period is 8 months for workers and one year for general staff. Only after

the successful completion of the probation, the employees are made permanent. If

the performance is not good the probation will be extended again. If the employee

satisfactory completes probation he will be confirmed in that particular post.

TRAINING AND DEVELOPMENT

Training and development becomes important as far as the growth of

the company is concerned. As the mill does not have a separate training

department, this function is performed by personnel and production departments.

Training needs are assessed by consulting with various departments.

The departments which need trained labour report it to the personal department and

makes necessary arrangements for training programme.

METHODS OF TRAINING

The workers are given only on the job training. The NTC staffs are

sent to the NTC staff training college, Coimbatore for training. The various

training programme have been given to managerial staff by different agencies.

PROMOTION AND TRANSFER

PROMOTION

The mill had followed the SITRA standard of promotion of employees

which is specified in the memorandum of settlement. The matters related to the

service conditions of the workmen of the textile industry in Kerala as a whole was

taken up by the Industrial Relations Committee (IRC) for Textiles, constituted by

the Govt. of Kerala and a general industry wide settlement under section 12(3) of

the ID Act. This refers to an IRC settlement between employees and workmen

represented by the union of various textile mills in Kerala.

As provided in the IRC settlement dated 1-12-1994, unit level

discussions was reached. As per the settlement the principle to be followed in case

of promotion is merit-aim-seniority. The promotion of management staff is done at

corporate level. It is the supervisor immediate to the worker who certify that a

worker is eligible for promotion.

The workmen becoming surplus in any category or department on account

of implementation of settlement shall be transferred from one category to another

category or department, while doing so the person shall be treated the junior most

workmen in that category.

Line of promotion of workers

1. Blowing 2.CARDING

3. DRAWING

4. SIMPLEX 5.SPINNING

HOPE FEEDER

SECUTHEE TENTEE

JOBBER CUM FITTER

LEANINIG GANG

DOFFING BOY

C

BOBBIN

LARRIER

DRAWING

TEENTEE

OLIER

SIMPLEX

TEENTEE

DOFFING

BOY

SPINNIND

DOUBLEE

DOFFING

CARIEE

BACK TENTEE

CARD TENTEE

ASST. FITTEE

OILEE CUM JOHBEE

6. POWER HOUSE 7.WORK SHOP

8. SECURITY GUARD 9.WINDING

JOBEE

ASST.

FITTEE OLICE CUM TYPESTICHEE

RESENC

PIECER

LINE JOBEE

DUFFING

JOBBEE

JUNIOR ELECTRICTION

CHARGE MAN

ASST. CHARGE MAN

SWITCH BOARD OPERATOR

SENIOR ELECTRION

HELPER

MAISTRY

FITTEE

ASST FITTEE

PACKEE

9. CLEANING GANG

10. REELING

SECURITY

GUARDHEAD SECURITY

WINDEE

CLEANING HANG LEADER

ROLLER COVERER

ASST. ROLLEE COVERER

FITTEE

ASST. FITTEE

CLEANING GANG

YARN CARRIER SWEEPER

MAISTRY

REELEE

REELING

ASST. FITTEE

OLIEE

TRANSFER

The management reserves the right to transfer employees from one shift to

another according to emergencies of work at its complete discretion. Inter

departmental transfer is done to both workers and clerical staff as per changes in

count pattern, product mix, break down of machine idling of machinery in order to

adjust surplus workers. Any person in any of the mills which comes under the

Bangalore subsidiary wants to join in any of its other mills must give an

application. If he agrees with the terms and conditions of that mill, he is considered

as the junior most of that mill. For the unit staff transfer is not applicable. In normal

circumstances no staff member will be transferred if he has 3 or less years of

service from his due date of retirement.

WAGE AND SALARY ADMINISTRATION

The personnel department effects prompts and correct payment of wage /

salary every month. The workers are paid their wages on the 7 th of every

subsequent month, while the mill staff and NTC staff are paid their salary on 30 th

every month.

CALCULATION OF NET PAY

Net pay is calculated as:-

Net pay = (basic pay +

Increment +

DA +

H.R.A +

Other earnings)

Grows pay:

Less: (PF+ESI +others)

: = Net pay

A worker should have worked 26 days in a month can claim his whole month

salary. For days not worked, a reduction in salary will be effected. Basic pay, DA,

H.R.A, are taken into account for reduction.

WORKING HOURS

Adult workers are not permitted to work more than 9 hours in a day

and 48 hours in a week. Since there is absenteeism in the mill, workers are

sometimes asked to work overtime. The wage given would be the rate of twice his

ordinary salary or rate of salary.

HOLIDAYS

The workers are not allowed to work in the unit on the first day of week

unless he has or will have a holiday or one of the three days immediately before or

after the day.

INTTERVAL FOR REST

The period of work in the factory is fixed that no period shall exceed

before he has an interval for the rest of at least ½ hour.

PROHIBITION OF EMPLOYMENT

No child who has not attained or completed his fourteen years is

allowed to work in the unit.

CANTEEN

The canteen provides employees with good food in a subsidized rate. The

canteen is managed by a co operative society. Registered as such, society may

include in the charges to the made food stuffs served as up to 5% on its working

capital employed in the running of the canteen. The charge per portion of the food

stuff, beverage and any other item served in the canteen shall be conspicuously

displayed in the canteen.

REST HOUSE

A rest house is in the company for the night shifters for their relaxation.

SPORTS AND RECREATION CLUB

This is for the relaxation of the workers. There are annual sports meet

conducted in every year. Under this mill there is a small library and reading room

which provides various news papers and magazines.

ALLOWANCES

National Textile Corporation provides allowances to the officers of the

mill. Vehicle allowance is also provided.

The mill provides quarters for both officers and workers. There is 58

quarters and for those officers who do not avail this facility is authorized to get

HRA.

BONUS

Bonus is given to workers at the time when company is in profit. Those

workers who earn salary up to Rs.10000/- is eligible to get bonus.

E.S.I

Free consultation and medicine is being provided to the workers by ESI.

PROVIDENT FUND

The corporation maintains and contribute to PF called Employees

State Insurance PF in respect of its employees other than those whose

service are placed at the disposal of the corporation by the Central or State

Govt.

CONTRIBUTORY PF

For this type of PF, the percentage of salary is compulsory deducted from

the workers salary and the same percentage of amount is deposited by the

management also. Presently PF pension is given from percentage of amount

contributed by the management. 10% contribution is made by the management out

of which 8.33% is given to pension fund.

WELFARE FUND

A welfare fund is established and maintained by the workers. There is a

worker’s committee for maintaining this fund. The committee decides the

percentage of contribution. One percentage contribution is made by the

management. The amount is invested in a bank and at the time of retirement, the

employee is provided with that lump sum amount.

GRATUITY FUND

Gratuity shall be payable to an employee who has rendered continues

service for not less than five years. The gratuity application must produced by the

employee before thirty days of the date of scope of retirement gratuity calculated in

the way that for one year service 15 days salary is given.

WORKERS COMMITTEE

A committee is constituted consisting of General Manager, Factory

Manager, Personnel Manager, Finance Manager, Three representatives of

workmen to be decided by CEO/ General Manager in consultation with the trade

unions concerned in any manner as per the local conditions in the mill, The

chairman of the joint management council of the mill.

FUNCTIONS OF THE COMMITTEE

1. Production programme

2. Utilization

3. Efficiency

4. Productivity

5. Quality of products

6. Cost reduction

7. Improving profitability

8. Purchase

9. Sales including disposal

PARTICIPATION IN MANAGEMENT

The management has good relationship with the unions-various union

functions as a term in care of major matters. They understand the problems faced

by the management and trying to adjust with the conditions of the mills.

The majority of the unions are of the opinion that the management is not willing to

consider the problems and hazards faced by the workers.

They blame the management for its efficiency in dealing with the day to day affairs

of the employees.

GRIEVANCE HANDLING PROCEDURE

THE CONTIGENCY PLAN

1. WATCH ON LABOUR SITUATION

The shift supervisors, Asst. Spinning masteries and spinning masteries will

keep a close watch about the labor and have their own arrangements and sources to

get inform on day today development of labor situation. Impute inform will be

directly and confidently passed on to the GM by the quickest possible means.

Labor welfare office will also collect informations by conducting union

representatives and pass on the relevant information confidently to the GM. Once

and above this the GM will also find sources to collect information directly to keep

him abreant of the developments in the mills. Relevant information will be passed

on immediately to NTC Banglore.

GM will convene meetings of the officers and

supervisory staff members at regular inlivals to discuss the labor situation.

2. PROMPT ARDRESSIAL OF THE GRIEVANCES OF LABOR

The probable grievances and demands of the employees are grouped for

the convenient handling of re dressed steps.

TRADE UNION

Trade union in the company is working very efficiently and in a very

healthy manner. The management able to maintain a good relationship with the

members of the trade union. Presently there are 3 trade unions including

INTUC

AITUC

CITU

Though there are some other unions they are not accepted but the management

only the members of 3 unions are allowed to be presenting representatives while

meeting are conducted.

The mil has not faced any serious strikes or lock out for the past years.

TIME OFFICE DEPARTMENT

Personnel department controls another department called time office

department. This department maintains the entering and living time of workers.

As said earlier the mill is now working under 3 shifts, 24x7 and thus it

is a tedius work maintaining the record of around 393 workers. There for the time

office deratment is having a strenuous job of keeping and maintaining all the

relevant records of hours of work of each individual.

All the workers are provided wit attendance card. This would

be given at the time of joining. The colour of each card varies with shift and

department. The worker has to give his bin card to time officer before starting the

shift. The worker will get back a card when he leaves the factory.

Head time keeper is in charge of time office. The time keeper

after collecting the bin card of the workers, calculate the shortage of labourers and

allot over time. There are senior assistants and clerks to help the head time keeper.

FUNCTIONS OF TIME KEEPER

The head time keeper has to collect the attendance and other details for

calculating monthly wages yearly bonus and other allowances and deductions. He

also calculates the terminal benefits such as gratuity, leave salary to be paid, salary

etc to workers on retirement.

The time officer maintains certain records including

2. Muster roles shift wise

3. Wage register

4. Service records

5. Over time register-daily & weekly

6. Register of apprentices with or without pay

7. Leave with wages

8. Fines

9. Gratuity & PF

10. ESI

11. Accident register

12. Overtime register etc

SECURITY OFFICE

The smooth functioning of the mill has direct connection to the security of

the company. The main objective of the security in this mill is the protection of:

1. Personnel

2. Information

3. Materials

4. Attendance leaves

The mill is protected by a boundary wall, with a sigle entrance . the

security office is near the entrance with 24 hrs working condition. The security

section consists of security inspector and under him one head security guard and

two security guard in shift.

The security office is responsible for the safety of the mill, its properties and

raw materials and finished goods. They also look after the transport of materials

both inward & outward. They verify the incoming materials with the bill similarly

the outgoing. The vehicles and the materials are controlled by pass system and

checked clearly. Identity card is provided to the workers; belongings are checked

or searched while going out.

The security section has to keep certain records including:

Goods movement in & out register.

Vehicles movement in & out register

Visitor’s resistors, which includes name, purpose of visit, time of visit.

CHAPTER –V

ACCOUNTS DEPARTMENT

ASSISTANT MANAGER (A/Cs)

Cotton Accounts

section

Sales Section Dispatch section

Accounts department is headed by Assistant Accounts Manager, under him there is

an accountant Sr. Asst (Sales) and a Sr. Asst (Cotton). To assist the accountant

there is a cashier, senior assistant and an assistant. Proper register and records are

maintained in this department.

Sales account, raw materials accounts, stores accounts etc are

maintained in this department. Cash book, general ledger, sub ledgers are checked

once in a month. Here four books are maintained:-

1. Stock book

2. Cash book

3. General ledger

4. Parties Balance sheet

DISPATCH

Dispatch section maintains the communication system both inward and

outward. The correspondence coming into the mill is entered into an ‘inward

register’. The departments of which they are meant are identified. The outward

letters are also entered into a register called ‘out ward register’.

Besides the correspondence, the Sr. Asst (Dispatch) maintains

telephone communication. The outward calls are marked in a particular register

which is meant for that purpose.

Cashier Assistants

RAW MATERIAL SECTION

A cotton clerk is given the charge to maintain all the records relating to the

purchase of raw materials. The cotton is purchased from the Cotton Corporation of

India (CCI). The quality of the cotton is tested by NTC. The cotton is purchased

from pvt parties by considering the price and quality of material. The sample is

sent to the Central Testing Laboratory (CTL) to ensure the quality. The polyester

material is purchased from Reliance and Viscose from Grasim industries mainly.

SALES SECTION

Senior Asst (Sales) is in charge of this section. Sales are also centralized.

The head office is the authority for the sales of yarn. The rate is also fixed by NTC.

A committee called yarn price committee is coordinated by the central authority

and they fix the rate for selling the yarn for every week.

At present, the mill is under a continues loss, the main reason being the

high price of raw material and low selling price. The profitability is highly

dependent on the market conditions.

NATIONAL TEXTILE CORPARATION

BALANCE SHEET AS AT 31st march 2009

Unit: VIJAYAMOHINI MILLS

Particulars Schedule no

As at 31. 3. 2009 As at 31.3.2008

I. SOURCES OF FUNDS

a. Share holders fund

I. Share capital/head office fund 1 24363000 24363000

II. Share pending allotment

III. Advance against equity

IV. Reserve &surplus 2 1983869.29 1983869.29

b. Loan fund

I. Secured loan 3 2863180.39 5288706.55

II. Un secured loan 4 511271722.67 435272182.45

c. Deferred tax liability

Total 5 40,481,772.35 466,907,758.29

II. APPLICATION OF FUNDS

a) Fixed assets 5

i. Grows block 2 28,442,121.38 101,799,085.21

ii. Less depreciation reserve 67,231,597.44 57,824,021.27

iii. Net block 161,210,523.94 43,975,063.94

iv. Capital WIP 9,889,907.554 8,359,216.87

Total 171,100,431.48 52,334,280,.81

b) Investments 6 7500 7500

c) Currentasst,loan&advances

i. Inventories 7 11,340,897 55,216,970.76

ii. Sundry debtors 8 5,501,621.08 7,296,221.55

iii. Cash and bank balances 9 108,913.40 82,152,232.40

iv. Other current assets 10 2,465,041 3,983,480.50

v. Loans & advances 11 15,125,601.88 17,048,628.37

Total A 34,542,074.36 165,697,587.58

Less:

Current liabilities and provisions

Current liabilities 12 31,538,128.25 64,210,179.15

Provisions 13 26,092,353 24,172,998

Total B 57,630,481.25 88,383,177.15

Net current assets/ liability A-B (23,088,406.89) 77,314,410.43

Miscellaneous expense

Deferred tax assets

d) Inter,suboffice current a/c

14

e) Inter,unit,Current a/c 14 A (7,672,860.87) 15,939,013.83

f) Profit & loss a/c 400,135,108.63 321,312,553.22

540,481,772.35 466,907,758.29

NATIONAL TEXTILE CORPARATION LIMITED

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING 31ST

MARCH 2009

PARTICULARS SHEDULE NO

CURRENT YEAR

PREVIOUS YEAR

Income

Sales 15 97,826,043.90 141,633,223.60

Inter Sub office sales/income 16Inter unit sales/income 16 A 205,402

Job charge other income 17Increase/decrease in stock 18 5,009,125.82 3,840,085.06

19 (16,913,338.74) (22,793,828.54)

TOTAL 86,127,232.98 122,679,480.12

Expenditure

Consumption of raw materials 20 47557750.48 75691001.12

Inter sub office Purchase/Expense

21

Inter unit Purchase/Expense 21 APurchase Finished/semi

finished goods

Employees remuneration & benefits

22 38453449.30 38984435.66

Manufacturing, Administrative, selling and dist. Exp

23 29606003.17 35529042.49

Finance charges 24 32483272.73 24135318.89Provisions 25 29533.74 65631.53

Depreciation 11974372.25 21,42784.84

Debts written off

Total 160104381.59 176548214.53

Profit/Loss for the year (73977148.61) (53868734.41)

Prior period income(expense) 26 (365103) 1832208.37

Extra ordinary items 27 (4480303.80) 500644201

Provision written back

Reserves written back

Profit/Loss for the year before tax

(78822555.41) (47030084.03)

Income tax

Tax under MATFringe Benefit tax

Wealth Tax

CHAPTER - IV

CONCLUSION

The NTC has given a go ahead sanction for the modernization of the mill

by comparing the performance of the mill with other units. Also NTC is going

ahead with a policy of closer of Non perfoming companies and giving all out

support to the better performed companies. NTC has closed down many units

under this policy and out of 116 units, only 52 units are now working. Both

management and workers are of hope that by 2020, the company could very well

profitable organization.

The organizational study under taken gives an insight in to the

function of the VIJAYAMOHINI MILL. The structure of the mill is well planned

and organized. The management is having a good control in the day to day

functioning of the company. However it is not in position to control the workers

absenteeism. Due to various reason though there is no much labor problem due

to trade union this unhealthy working conditions in the factory, ie heavy dust

condition was a major health problem for the workers. The modernization

program will be an answer to the major problem.

The financial position is also not sound due to the loss incurring by the

mill. The modernization programme will be an answer to this problem also to

some extent, the quality improvement if undertaken will boost the export and their

by improve the financial position.

The study has helped extensively to understand the various function

and problem being faced by a manufacturing company.