THE STUDY ON COTTON MANAGEMENT SYSTEM OF ANNAI SPINNING MILLS (P) LTD

INSTITUTIONAL TRAINING REPORT

2011-2012 Submitted by 1. A.KIRUTHIKA 2. T.MOHANA 3. M.S.ARUNKUMAR 4. P.CHANDRASEKAR 5. M.MEERAMAIDEEN 6. S.NANTHAKUMAR 7. A.RAJESHKUMAR 8. M.SATHISHKUMAR (Reg No: 092AA3229) (Reg No: 092AA3236) (Reg No: 092AA3251) (Reg No: 092AA3252) (Reg No: 092AA3265) (Reg No: 092AA3266) (Reg No: 092AA3274) (Reg No: 092AA3277)

Submitted in partial fulfillment of the requirement For the award of degree of

BACHELOR OF COMMERCE

UG Department of commerce Dr.R.A.N.M ARTS AND SCIENCE COLLEGE (Affiliated to Bharathiar University, Coimbatore) Rangampalayam Erode-638009.

CERTIFICATE

This is to certify that the entitled COTTON MANAGEMENT SYSTEM for ERODE ANNAI SPINNING MILLS (P) LTD submitted to the BHARATHIYAR UNIVERSITY, Coimbatore in partial fulfillment for the award of the degree of BACHELOR OF COMMERCE is a record of original project work done by 1.A.KIRUTHIKA (Reg No: 092AA3229) 2.T.MOHANA (Reg No: 092AA3236) 3.M.S.ARUNKUMAR (Reg No: 092AA3251) 4. P.CHANDRASEKAR (Reg No: 092AA3252) 5.M.MEERAMAIDEEN (Reg No: 092AA3265) 6.S.NANTHAKUMAR No:092AA3274) (Reg No:092AA3266) 7.A.RAJESHKUMAR (Reg 8.M.SATHISHKUMAR

(092AA3277) under my supervision and guidance and this project work has not formed the basis for the award of any Degree / Diploma /Associate ship / fellowship or similar title of any candidate of any university.

Forwarded by

Head of the department

Signature of principal

DECLARATION
I hereby declare that the project work entitled COTTON MANAGEMENT SYSTEM for ERODE ANNAI SPINNING MILLS (P) LTD submitted to the BHARATIYAR UNIVERCITY, Coimbatore in partial fulfillment for the award of the degree of BACHELOR OF COMMERCE is a record of original project work done by we during the period of 2011-12 Department of commerce, Dr.R.A.N.M ARTS AND SCIENCE COLLEGE, ERODE and that this project work has not formed the basis of the award of any Degree/Diploma/Associate ship/fellowship or similar title of any candidate of any university.

Place: Erode Date:

Signature of the candidate

ACKNOWLEDGEMENT
First We would like to thank god almighty for all the blessings he has endowed upon me with profound sense of indebtedness; We thank my parents for their immense love and support.

We express our sincere thanks to our honorable president of Mudaliar Educational trust Mr. K.M.DHANDABANI

We immensely thankful to our honorable secretary and correspondent Mr. K.K.BALUSAMY, Dr.R.A.N.M ARTS AND SCIENCE COLLEGE, ERODE

We are take this opportunity to express sincere thanks and gratitude to our principal Dr.T.P.J.BHARATHI, M.com, M.Ed., M.Phil., Ph.D., for giving we the opportunity to carry out the project. We extent we sincere thanks to Mrs. K.VIMALARANI., M.com., M.Phil., PGDCA., Head of the document, Department of commerce for her encouragement.

CONTENTS
S.NO 1 2 INTRODUCTIION FUNCTIONAL DEPARTMENT 2.1 PURCHASE DEPARTMENT 2.2 COTTON DEPARTMENT 2.3 PRODUCTION DEPARTMENT 2.4 QUALITY CONTROL DEPARTMENT 2.5 STORE DEPARTMENT 2.6 SALES DEPARTMENT 2.7 FINANCE & ACCOUNTING DEPARTMENT 2.8 COSTING DEPARTMENT 2.9 PERSONNEL DEPARTMENT 3 CONCLUSION CHAPTER PAGE NO

INTRODUTION:

Cotton textile is a very old industry. It takes care cloth, one of three essential for human living-food, cloth, shelter. Textile mills were established in Mumbai was called MANCHESTER of India and COIMBATORE is called Manchester of South India.

PRE INDEPENDENCE PERIOD:

During the pre-independence period (before 1947) many te xtile mill were established in Coimbatore because of i.)Availability of land; ii.)Labour and more so WEATHER: The humidity in the atmosphere is some more suitable for spinning textile Industry is LABOUR Intensive as well as CAPITAL intensive, ie, more men as well as more money are required

COTTON TEXTILE CITY:

Because of establishment of textile of Textile Mills in Coimbatore Textile manufacturing ,spares and services and foundaries were established. Thus the city of coimbatore became the hub of textile activity. It is often called TEXTILE CITY.

INTRODUCTION OF COMPANY:
The textiles mills were established as early as 1881 recession began to infest the industry most of the mills found it difficult to continue to run the mills and activities came to grinding halt in 1969 . . In order to providecontinue employment to employees Govt of tmilnadu formed TamilNadu Textile Cotporation in 1971 under the Sick Textile undertackings takilng over of management oridance 1971.

PROFILE OF THE COMPANY

Name of the company Registered Office : : Annai Spinning Mills A Unit of National Textile Corporation Post Box No.2409 35-B, SomaSundaram Mills Road Coimbatore. Administrative Offilce & Works: Annai Spinning Mills Post Box No, 638052 vellode perundarai. Year of Establishment Government unfertacking The General Manager The Personal Manager Company Phone Number Product manufactured No.Of Permanent Works No.Of Offilce Employee Total Production Capacity Workers time : : : : : : : : : : 1929 (01.04.1974) S.KRAIDHNA KUMAR S.ELANGO 2273008,2270473 Yarn 302 31 42672 8.30am to 12.30pm. 12.30pm to 5.00pm.

BRANCHES OF THE ANNAI COMPANYS

Annai concern of Southern Regional office are as follows:

SRI RANGA VILAS MILLS PANKAJA MILLS CAMBODIA MILLS PIONEER MILLS CBE. SPG AND WRG, MILLS MURUGAN MILLS

FUCTIONAL DEPARTMENT

PURCHASE DEPARTMENT COTTON DEPARTMENT PRODUCTION DEPARTMENT QUALITY CONTROL DEPARTMENT STORE DEPARTMENT SALES DEPARTMENT FINANCE & ACCOUNTING DEPARTMENT COSTING DEPARTMENT PERSONAL DEPARTMENT

PURCHASE DEPARTMENT
The following diagram heads the purchase department:

Annai Head Office of Purchase Officer

Annai Mill Purchase Officer

Staff
FUNCTIONS:

Quality and other specification relating to new materials Model in case of machineries and spares Low price and High Quality. Any spare parts immediately purchase.

SENDING THE QUOTATION: After, Cambodia Mills send the Quotation stating that their rates and their capacity to deliver the goods. PURCHASE ON AND OFF PERIOD:
On period-October to march, Off period-April to August.

DISCOUNT:
The suppliers allowed for discount 10days pay the bill four discount rate 2.5%,20 days for 1.5%, 30 days for discount rate for 5%.

THE COMPANY ORDER FOR TWO TYPE OF PURCHASING:

Ordinary Purchasing. Emergency Purchasing.

ORDINARY PURCHASING:
In the ordinary purchasing to follow all the Rules and Regulations. If any material needed should send the message to the Head Office, Ordinary purchase of any Material purchased from Head Office.

EMERGENCY PURCHASING:
Emergency purchasing goods any NTC Rules and Regulations not following them. In emergency goods purchased store keeper for emergency goods. TNGST NO.2140142 Dt. 1.4.95 CST No.573579 Dt. 18.6.76

COTTON DEPARTMENT
This department plays a major role in the company because the organization raw material is cotton usually purchase of the items required for the organization of Annai(TN&P) in done by the purchase department of C.C.I. (Cotton Corporation of India.).

RAW MATERIAL
The raw materials can be classified in two types of fibers

Natural fiber cotton man made fiber polyester staple fiber

COTTON CLASSIFICATION
Cotton can be classification in to three different types.

Short on Low staple Medium staple Long staple

Raw Materials used for production is three types of yarns

Lower counts(208) Medium counts(30 to 50) Higher counts(60 and above)

The following diagram heads the cotton purchasing department Cotton Purchasing

Cotton Selector C.C.I

Head Office (TN&P) Ltd Cotton Purchasing Officer

Annai Cotton Purchase Officer

Staff

MAIN MARKETING ARC

Parties lot number press mark press running number varity name station name bale serial number

VARITIES OF COTTON
The lower counts

LRA MCV5 S6 BB, Purchasing Area: Punjab, Hariyana, Tamil nadu

PRODUCTION DEPARTMENT
The following diagram heads the production department

PROCESS OF FLOW CHART

Mixing

Blow Room

Rero Feed BlowRoom

Carding

Comber

Drawing

Simplex

Auto Cone winding

Ring Spinning

Cone Winding

Double Winding

Packing

MIXING
In this process the raw cotton is mixed with the man made fiber. This is the first step in the production process. The cotton and polyester is mixed as per the percentage for requirement. Cottin 30%, Polyester 70%

Mixing cotton is polyester spray the cotton oil and 10ml and tinting powder.

BLOW ROOM
The mixed cotton and the fiber are send to the blow room with the help of the equipment. The cotton is freed from extended impurities purifications process begins by training the compressed mars into loose tuffs by blending the various lots of cotton constituting the mix and production uniform sheet known as lape. The impurities and the dust in cotton removed in the blow room. The feeding material in the room namely raw cotton and fiber is delivery in the lape form after processing.

CARDING
In carding the cotton is the feeding material which further completely opened in to individual fiber to product silver which is suitable to subsequent process the production of counts largely depends on the type of cotton defter and silver hank lop. High speed carding machines are used to optimize (LR Carding 19 Mas LR Aero carding -8Nos.)

DRAWING
Eight can are taken to drawing it comes as 1 silver from the cards are uneven and should be made uniform in cross section and weight through it length through drawing operations the fiber are made approximately parallel to produce a stand of uniform thickness and the process is separated at the subsequent passages. Thus unevenness produced in the silver in removed.

SIMPLEX
In the simplex the thickness of the silver is reduced and the silver is given twist as to wound them into bobbins. The purpose of this process is to convent the silver in to thinner stands to achieve the derived ultimate yarn count. The production at the simplex depends on the spindle speed the ultimate product get in this process in rowing.

SPINNING
The yarn round on bobbins is given further to twist at considerable high speed and drafted to procedure. It enables further processing awards enlargement and waste. High draft systems enable production so superior of their raw materials. And break during spinning. This process ends by producing yarn.

CONE WINDING/AUTO CONE WINDING

The yarn from ring frame is winded in to cones which is suitable for market. The cone will be near of in this process facts like 1 or 1.5kg of weight.

QUALITY CONTROL DEPARTMENT

The function of this department is to check the quality and to maintain the quality of yarn that is being produced. The quality of yarn is checked at each stag of the manufacturing process.

Statistical Quality Control Mixing Blow Room Carding

Combed count Silver Lap Ribbon Lap Comber Drawing Simplex

Carded Counts Drawing Simplex Spinning Winding Packing

Winding

The quality is checked using 3 Machine are

Premier tester Electrical and Electronic device Manual tester

Three Machines show the unevenness found in the yarn product (i.e) the thickness and thinness in the yarn high quality standers are maintained by effective and periodical test. In this department each and every type cotton is productly first and two types combined to form a high cotton yarn. Two types of yarn produced here

Production Materials

o Combed yarn o Carded yarn

COMBED YARN
In this type of yarn it is very pure and it is very strong and colours of the yarn is very reflective. The yarn is of 100 meters one time the S.G.C sacked by quality controller.

STORES DEPARTMENT
Store keeping invoice proper maintenance of stores identifying and classifying them according to their nature, type and size. If also includes proper

maintenance of stock records proper storage of goods store keeper is responsible for store control of any material on spare required for respective department, the in charge should sign and given detail of required material is required material is required material is requisition ship.

General Manager of Cambodia Mills (TN&P)

Store Keeper

Staff

FUNCTION OF STORE DEPARTMENT

Producing material in necessary for production Maintaining stock Maintaining buffer stock during emergency period

GROUPING OF REQUIRED PRODUCTS

Like branded products to be purchase from the socialized parties goods to be imported such electronic goods packing material in area from iow price

COLLECTION OF QUOTATION
After grouping the product the quotation are send to every individual department manager for approval.

PROCEDURE FOLLOW IN STORDEPARTMENT

To receive indents from concerned department for the

purchase of material To sending under to purchase department for placement of

orders To receipts of goods To verity the quantity received as per order To preparation of in pass To checking the quality

After satisfaction of quality of goods the in pass is received signed by the concerned department that to accounts department.

A.ITEM
Quotation of pricing rate is 15,000 and above. In this pricing rate above purchase for machines and spare sports, canteen, and electrical equipments respective authority supplier, continues supplying hour.

ELECTRICAL ITEMS

Fast Machine bearings Spinning accessories Spindle tape Electronic goods Yarn processing chemicals

SALES DERPARTMENT
The quality controller and the production execution are responsible for the functioning of sales dept of this organization of Annai (TN&P) they are charging four packing and dispatching the materials collection of amount.

Cost Accountant Sales Officer of Cambodia Mills Staff Cambodia Mills makes hot for direct sales the powers are vested with (TN&P) Ltd., Head Office. Their Sales is of two types

Depot keepers Consignment

DEPOT KEEPERS
The H.O.(TN&P) Ltd., makes sales for depot keeper the depot collect the yarns and send customer depot sales credit responsible for H.O. of NTC (TN&P) Ltd.,

SALES AREA DEPOT DEEPERS

Mills(TN&P)Ltd-40%

Bombay Calcutta Sales credit H.O.for-60% Cambodia

CONSIGNMENT
The amount is receive hodrance before goods are send consignment sales are

Maharasthra Delhi Ahamadabad Gujarat

OWN REPORTS
The mills makes direct sales to local area for consignment sales responsible for company sales department

Thirupur

Somanur Erode

The full amount is collect for Cambodia mill (TN&P) Ltd.,

MARKETING DEPARTMENT
Marketing is challenging and exciting the solving of marketing problems require in eight experience and analysis ability. Take case of a company faced with problem of increasing in sales. Increase sales after expand give profit.

ROLE

Review authority

The mill Annai (TN&P) Ltd engaged in performance of

H.O. marketing function Customer served business farms Sales product market condition and section Authority of approval Issue and control authority

H.O.Marketing Manager Assistant Marketing Manager

DEPARTMENT PROCEDURE FOR BOOKING ORDER BY AUTHORISED H.O

Mill send weekly price of list to H.O. H.O. Shall send their sale person to market and

procedure customer enquiry to market department by means such letter, Tax, E-mail, etc.

ORGANISING FOR DISPATCH

Invoice prepared in three categories 1. Incase of against payment

One copy to H.D One copy to filing One copy for transports

2. Incase of bank document 3. Copies hand over to banker Three copies hand over to banker

One copy to hand office One copy to transports

One copy to filing

The marketing departments will interest to the respective transport for issue of large receipt from transports recommended by respective.

FINANCE AND ACCOUNTS DEPARTMENT

In our present modern oriented economy every thing need finance to carry its target right from promotional stage to end in final stage. The finance plays an important role in company life. Intact finance is to indispensable to day. Its rightly said finance is life blood of enterprise. In financial statement are prepared under historical cost convention on accrual basis and are accordance with accounting standard referred to sub sec 211 of co, act 1956.

CENTRAL SALE TAX ACT

Main objective of central sale tax 1956 is formulate principle of determining us to when a sale of purchase of goods take place in course of interstate trade on commerce.

SOURCE OF FINANCE

Sales Contract government finance Banks

 Share holders funds

ACCOUNTS
This department is a/c closed on daily basis. Personal for each computerized information helps in accountancy of errors.

FUNCTION
Finance and accounts department perform following function

Planning Formulation of financial budget Working capital management Negotiation with banks and financial institution Day to day management of funds Interaction with credit reading agency and finance

institution Preparation of P&L A/c and B/S Purchase bill passing Sales and income tax matter Voucher prepared Cash payment voucher

Cash receipt voucher prepared by cashier Bank payment voucher Debit advertisement voucher for recording bank

transaction Debit note and credit notes

PURCHASE BILL PASSING

The A/cs department usually receives a copy of purchase order from purchase department. Then A/c department will entry the purchase order copy with their in pass bill send by store department.

PREPARATION OF CASH VOUCHER AND PASSING

The department prepare cash voucher for payment daily expenses like lorry freight, administration expenses traveling expenses etc. this cash voucher will be immediately paid by the cashier of production of the cash voucher along with accounts manager signature.

BORROWINGS
A company needs money to finance its activities from time to time. A part of this requirement is met by the issue of shares.

Inter corporate loans Fixed deposits

Loans from head office

BANK OF CAMBODIA MILLS

Indian overseas bank - Town hall Canara bank - Ondipudur

BOOKS MAINTAINED BY ACCOUNTS DEPARTMENT

Cash book Bank book Purchase journal Sales journal General journal Sundry creditors ledger Fixed deposit ledger trade deposit ledger General ledger

P&L A/c & B/S

FILES MAINTAINED

Yarn processing Machinery Capital assets Continent file Delivery note Winding processing order Indent copy file Indent copy file In pass SPG

COSTING DEPARTMENT
In plays a vital role in the affairs of the company. Every week cost department will forecast the yarn.

COST
The cost estimate is prepared separately for various varieties 20s/30s/40s/60s/80s/90s/100s to arrive of the actual cost/contribution profitability statement prepared. A daily profitability statement an estimate on production office.

FIXED CONVERSION COST

Wages (Fixed Nature) Staff Salaries Repairs &maintenance Deprecation Factory over head Administration over heads etc.,

VARIABLE CONVERSATION COST

Wages variable Vitalities cost-power-water-compares air etc., Consumable stores and spares etc.,

RESEARCH CENTURIES

Ahmedabad Textiles Industrys Research Association (ATIRA) Bombay Textile Research Association (BTRA)

South India Textile Research Association (SITRA)

PROCESS OF MANUFACTURE

Spinning Department Weaving Department Processing Department Utility Department Ancillary production centers Marketing cantors

BUDGET
Budget for yarn are separately for every year. In case of budgets. They are four types:

Production budget Wages budget Power budget Expense budget

FORECOST
For every month fore cost statement are made with the budget as a base fore cost are also done for your separately. It is a statement which gives as idea about the production profit and loss.

ACTUAL
In this statement the real costs which have been accured is taken and compared with the budget and forecasted figures when there is any difference the reason for the difference is analyzed.

PRODUCTION BUDGET
To began with production budget the first statement to be prepares for Head Office(TN&P).

FIXATION OF STANDARD WASTE

The waste percentage for each department is decide and fixed percent on department input.

STANDARD WASTE SALES REALIZATION

The statement is repairs to know the exact sales value of the and the sales values are derived from it. This is done for all department waste. Cost manager consign waste sales.

STANDARD WASTE SUMMARY

This is the summary of total waste sales value up to ring frame of all type of mix. This is both for single and double yarn.

BALANCE OFF PRODUCTION

After analyzing the wastes and its sales value production details to be given. The process of production starts form fined stage.

WAGE BUDGET

Finally the details of the employee their basis salary collected by the cost department real allowance and other allowance recalculated payment and daily wage for worker of cost department. Another statement is prepared for wages in the department they are for water, power, modification, machine shop, stores watch and canteen, building and the total is taken into account.

STANDARD WAGES
In this statement wages for all types of workers grades are given individually and wages are calculated. The total wages P.F., Bonus ,ESI , and other incentive are added the total value are given separately

POWER BUDGET
In this budget the actual power consumed by each and every unit is taken into account with the help of this statement the exact amount of power consumed land its rates can be determined.

FINANCIAL EXPENSES
For the preparation of the budget the actual expenses incurred by the control Government in NTC (TN&P) Ltd Mills Head Office considered direct cost and variable cost. The financial expenses statement in this budget is the machine rate and the expenses budget. The machine cost is variable per month and the budgeted machine is arrived.

COST CREDIT
According to Chartered Institute of Management Accountants in London (CIMA) cost is the verification of the correctness of cost accounts and of the adherence to the accounting plan.

YARN P&L FORE COST

In this force cast it explain the selling price, contribution fixed expensed administration and interest and also P&L manufacturing responsible cost department like that of yarn fore costing actual are done after finalizing the fore cost and actual report in to be prepared and submitted to the Central Government.

PERSONNEL DEPARTMENT
Canteen Production Time officers Welfare

 Staff

Materials Employers Staff

Staff

Employee

FACTORY LAYOUT Adequate accommodation is made available for the factory workers sufficient space is provided between machinerys for then to move about. ESI(EMPLOYEE STATE INSURANCE) This scheme was introduced from the year 1995 and is still working satisfaction ESI over agley for employee must be 90 days salary. Employee Management 17.5% (Monthly)

4.75%(6.50) (Monthly)

7,500 Salary below to allowed for ESI benefit. ESI BENEFIT

Employee Sickens Any Accident By pass Surgery And our family member

PF (PROVIDENT FUND SCHEME)

The employees carefully enjoy the schemes and the workers are contributing to the rules.

Employee =12% of salary Management =12% Company =3.67+8.33+pension amount Pension only 6500 for eligibility Form 10 who the next person From 19 retirement, resignation, dismiss From 20 still death serviced and 50 yrs completely From 10C 50 yrs below scheme certificate From 10D pension immediately sent to person next our wife is children below 26

EDLI (EMPLOYEE DEPOSIT LINKED INSURANCE SCHEME)

It any employee insured death Rs.62,000 be given to the family form immediately 10 Days and person immediate.

PF.LOAN FACILITY

Form 31: Marriage Loan 3 times Employee percent of salary for Loan Site purchase 24 month salary House Consecution (36 Month salary) House purchaser Educations loan(3 times) Medical Loan(ESI) Eligibilty Non Person (12 Month salary)

CONCLUSION
The computerization is aimed decreasing work of employees in this company, When the computer is implanted, there is no need to keep the details of in textiles of regards. All the data can be stored in the system and whenever the user needs to access the data, he can easily retrieve it. The company maintains the record-using computer to develop in such a way that it should be easy to handle. A person even without prior training can operate it.

CONTENTS

INTRODUCTION

PROFILE OF THE COMPANY

BRANCHES

FUNCTIONAL DEPARTMENT

PURCHASE DEPARTMENT

COTTON DEPARTMENT

PRODUCTION DEPARTMENT

QUALITY CONTROL DEPARTMENT

STORE DEPARTMENT

SALES DEPARTMENT

FINANCE & ACCOUNTING DEPARTMENT

COSTING DEPARTMENT

PERSONNEL DEPARTMENT

CONCLUSION