1.

INTRODUCTION
1.1ABOUT THE COMPANY:
Bannari Amman Spinning Mills Limited, established in 1995 has a capacity of more than
140,000 spindles. The mill has a complete range of state of the art spinning equipment including
Lakshmi Rieter Spinning machinery from Blow room to Spinning departments, Schlafhorst-338
model autoconers for yarn production.
The latest generation of Blow Room lines connected to the cards with Chute Feed
System, Auto Leveller Draw Frames and Spinning Frames with Ring Data System, Blow Room,
Cards and Combers fitted with automatic waste collection systems are available.
The product range includes Ne 20/1, Ne 24/1, Ne 34/1 & Ne 40/1 combed and carded
knitting cotton yarn and caters to Tirupur, Calcutta & Kanpur markets. The mill exports 24% of
the production to Israel, Mauritius, Egypt, Taiwan and South Korea.
The company has a Weaving Division with specialized looms for ultra fine count wide
width fabric for home furnishings and jumbo looms for industrial textiles. The spinnning Mill
has a manufacturer unit for bed linen, Mattress protector, Pillow protector and more products.
The Technical textile division of the company consists of a Coating division and a Lamination
division.

1.2 COMPANY PROFILE:

Bannari Amman Provides Waterproof, Allergy Mattress Protector, Bed Protector And Bed
Linen For Baby. Buy Waterproof, Allergy Mattress Protector, Baby Bed Linen, From
Bannari Amman Spinning Mills

Relevant Categories :

Cotton Mill Machinery , Industrial Yarns And Sewing Threads ,

Textile And Garments , Texturing Machine

Product Profile :

Waterproof Mattress Protector, Bed Protector, Allergy Mattress

Protector, Baby Bed Linen

Address :

252 , mettupalayam road,, Coimbatore 641043

Telephone :

91-422-2447959 91-422-2430233

1.3ORGANISATION STRUCTURE

Managing Director

Executive Director

Vice person

Assistant general manager

HR manager

DGM

Clerk
Clerk

Clerk

MANAGEMENT
CHAIRMAN:
Dr. S. V. Balasubramaniam, aged 71 years is the Chairman and Promoter of our Company. He
holds a Bachelors degree in Commerce from Madras University and is a qualified Chartered
Accountant as well as a Company Secretary. He is the recipient of the prestigious Doctor of
Science (Honaris Causa) from Tamil Nadu Agricultural University, Coimbatore in the presence
of Hon. President of India Dr. Abdul Kalam. He has more than 45 years experience in sugar,
textile and engineering sector. He was the president of Indian Sugar Mills Association in the year
1990-91 and 2002-03. He was awarded with the "Seva Rathnakara Award" in the year 2000 from
Sri Adichunhangiri Mahasamsthana Math, Sringeri, Karnataka, the "Baktha Siromani Award" by
H. H. Kanchi Shankaracharaya and the "TNF Excellence Award" from Tamil Nadu Foundation,
USA.

VICE-CHAIRMAN
Mr. S. V. Alagappan, aged 66 years is the Vice-Chairman and Promoter of our Company. He is a
qualified law graduate and has experience in the field of textile for more than two decades. As
Vice-Chairman, he assists the Chairman of the Company on policy matters, project expansions,
finance outlays and Investments.

MANAGING DIRECTOR
Mr. S. V. Arumugam, aged 60 years is the Managing Director and promoter of our Company. He
holds a Bachelors Degree in Science and is a qualified Chartered Accountant. He has more than
two decades of experience in the textile industry in planning, procurement, execution and
management. He is responsible for the overall operations of the Company inter alia finance,
purchase, sales and marketing.
He was the Deputy Chairman of Southern India Textile Mills Association (SIMA) which has 301
Textile Mills as its Members and was the past Chairman of Confederation of Indian Industry,
Coimbatore Chapter. He is a Committee Member of the Indian Cotton Mills Federation (ICMF),
Mumbai. He is the Honorary Secretary of Indian Wind Power Association, Chennai.
4

HR DEPARTMENT
2. HUMAN RESOURCES:
Human resources is a term used to describe the individuals who make up the workforce
of an organization, although it is also applied in labor economics to, for example, business
sectors or even whole nations. Human resources is also the name of the function within an
organization charged with the overall responsibility for implementing strategies and policies
relating to the management of individuals.
Personnel management aims to achieve both efficiency and justice neither of which can
be purchased successfully without the other. It seeks to bring together and develop into an
effective Organization, the men and women who make up an enterprise, enabling each to make
his best contribution to success both as an individual and as a member of a working group.

FUNCTION OF HR DEPARTMENT:
Organizational planning & development
Staffing &employment
Wages & salary administration
Training & development
Employee service & benefit
Motivation
Employee records
Labor relation

 Personnel audit research

HR & HR POLICY INITIATES:

Our success depends to a great extent on our ability to recruit train and retain quality
employee and workers. According we place special emphasis on the hr function in our company.

HR POLICIES ALLOW AN ORGANIZATION TO BE CLEAR WITH

EMPLOYEES ON:

what they should expect from the organization.

what the organization expects of them.

how policies and procedures work.

EMPLOYEES DATA:
Employees Data is stored as database in the computer. All the various records and pieces
of data on employees and applicants are converted to forms that can be used by the computer.

FILES MAINTENANCE:
There are various types of files are maintained by HR department. Personnel, official and
other standard files should be handled and maintained by HR manager. It includes Personnel data
file, Recruitment/Selection data file, Work Experience data file, Compensation data file,
Performance appraisal/Promo ability data file, Benefit Plan data, Health/Safety/Accident data
file, Payment of Gratuity act, and Salary etc.

ATTENDANCE MAINTENANCE:
HR department regularly maintained all employees attendance by using attendance
record.

HRIS TOOLS:
Many different software packages are used by HR department. More software programs
are being developed every month, so an exhaustive listing is difficult to maintain. Oracle
software is used in the HR department. & separate payroll software.

HR COMMUNICATION

HR department mainly communicating with other department by using of Telephone, Fax

and Notice Board. HR communication through manager through particular department staff. And
finding the problems in each department and the solutions for the problems.

HR BRIDGE:
Every week each and every department such as purchase, production, marketing, finance
and packaging department should conduct separate departmental meeting. Each department
manager should be submitted the meeting result to HR department.
The HR manager analysis the result and take correct action. The HR manager also
handled the grievances and providing all welfare facilities to all working employees so the HR
department is mainly act as a bridge between management and employees.

ORGANIZATION BRAND BUILDING:

HR plays vital role in the organization he gives organization, the best employee.

TEAM WORK:
The company has the policy to equal number of employees with the respective of
Gender, Creed and Caste.

HR AUDIT:
HR auditing is conducted by the corporate office through HR department. Every Year HR
audit are conducted. Statutory audit will be conducted once in the year of March.

JOINING FORMALITIES:
The joining formalities of both staffs and
group

certificate,

photographs,

and

degree

employees are date of joining, blood

certificates.etc.

EMPLOYEES BECOME THE PERMANENT EMPLOYEE

They are following tips for turning a temporary position into a permanent one.
8

1. Perform as a permanent
2. Burn the midnight oil
3. Dress to impress

2.1. RECRUITMENT

Recruitment refers to the process of attracting, screening, and selecting qualified people
for a job. For some components of the recruitment process, mid- and large-size organizations
often retain professional recruiters or outsource some of the process to recruitment agencies.

The recruitment industry has four main types of agencies: employment agencies,
recruitment websites and job search engines, "headhunters" for executive and professional
recruitment, and niche agencies which specialize in a particular area of staffing. Some
organizations use employer branding strategy and in-house recruitment instead of agencies.
Recruitment-related functions are generally carried out by an organization's human
resources staff.

SOURCE OF RECRUITMENT:
Internal source
External source

INTERNAL SOURCE:
The various of internal source are

Transfer
Promotion
Employee referral
Job posting

EXTERNAL SOURCE:
The various of external source are
Employee exchange
Campus interview
10

 Job fair
Consultant
Many large or unionized companies use this method and all but top civil service job are
filled internally by this method.
A successful external recruiting effort requires careful planning and coordination.
Medium-size, large organization Hrm professional do most of recruiting. These people may be
HR generalist who spends some of their time performing recruitment activities or full time
recruiters who specialize in seeking and screening potential new employee.

Recruitment process
Identify vacancy

Preparing job description& specification

Advertising

Managing response

Short listing

Factors Governing Recruitment

Internal factor:

Reference

o Recruitment Policy of the Org

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o Size of the org & the Number of Employees Employed

o Cost Involved in Recruitment
o Growth & Expansion Plans of the Org.

External Factors
o Supply & Demand of Specific Skills in the Market
o Political & Legal considerations such as Reservations of jobs for
reserved Catagories
o Companys Image Perception by the Job Seekers.

2.2. SELECTION
Selection is the process of picking individuals with requisite qualification and
competence to fill jobs in organization

SELECTION PROCESS:
The selection process are

Preliminary Interview
Selection Tests
Employment Interview
Reference and Background Analysis
Physical Examination
Job Offer
Employment Contract

12

2.3.COMPENSATION:
Compensation

may

achieve

several

purposes

assisting

in

recruitment,

job

performance,and job satisfication.

SALARY FIXATION AND INCREMENT:

There is no slab for salary fixation and increment.

METHODS OF SALARY:
Monthly basis salary system should be used by an organization. All payment of salary
should be paid on working day.

SALARY DISCREPANCY:
The employer may after obtaining the written authorization the salary either by cheque or
crediting the salary in his bank account. The salary is given equally for all the peoples at their
levels positioned to them.

2.4. INDUCTION/ORIENTATION:
Induction training is specifically given for all newly selected candidates for certain period
of time. The newly selected person is introduced to their environment working procedure. It can
vary in time period as it depend upon the size of organization post of new selected employee,
amount of personnel he is going to work with and many more aspect.

Orientation and Training of New Employees

New employee orientation effectively integrates the new employee into your organization
and assists with retention, motivation, job satisfaction, and quickly enabling each individual to
become contributing members of the work team.

13

2.5. TRAINING /DEVELOPMENT:

TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that
randomness is reduced and learning or behavioral change takes place in structured format.

TRAINING DEPARTMENT FOR TRAINING THE FRESHER:

Employee training, development and education at the right time provide big payoffs for
the employer in increased productivity, knowledge, loyalty, and contribution. Learn the
approaches that will guarantee a return on your investment in training.
They plan to give the training sessions for 3 to 4 classes for a month. Maximum 10 hours
they use to give training based on all the departments HR, safety work, production department,
etc.

TRAINING EVALUATION IS CARRIED OUT:

Training evaluation is carried out by the feedback forms given to the employees and
they use to tell what all they need for their training are. And how many days they need to achieve
the target.

EMPLOYEES REQUIREMENT PLAN:

This strategy applies to recruitment activities within our company, no matter what its
size. Whether your recruitment plan is meant to be distributed to the public or to act as a set of
guidelines for our staff, the success of our recruiting venture lies in its construction. Employee
requirement is planned with based of employee training

2.6. PERFORMANCE MANAGEMENT / PERFORMANCE APPRAISAL:

Performance management can focus on the performance of an organization, a
department, employee, or even the processes to build a product or service, as well as many other
areas. Performance appraisal is the process of obtaining, analyzing and recording information
about the relative worth of an employee.
Performance appraisal is based on yearly. It is based on the target they achieve and also
based on the grade.
14

PROMOTION IS CARRIED OUT:

On the basis of years of experience and performance, promotions are made. The
rewards given to the employees based on the issue of suggestion tokens. If the suggestion is
valid, then they employee will be provided to about 1000 to 2000 rupees for the particular
suggestion. The suggestions not only on the work it includes all.
Based on the corporate they give 20% of incentives. Bonus is based on the performance.

HISTORY CARD & SCORE CARD:

The Company maintains all the details and performance of the employees and they are
put the grade to them

EMPLOYEES REMOVAL:
The employees noticed their performance and those who are not having enough skill to
work will be listed in the front office board it will be men that the persons listed should have to
leave the organization. This is being informed by the union leader.

EMPLOYEES FEEDBACK & SUGGESTIONS:

The feedback is also collected from the employees; they also can give the suggestions to
develop the company. Employee feedbacks are collected in the face to face meeting. Immediately
after collecting information administration implemented the reforms.

MEASURES TAKEN TO IDENTIFY THE SLOW WORKERS:

The measures taken to identify the slow workers are they give the counseling to particular
employee and identify the problems of the employee.

BEST /BETTER EMPLOYEES ARE MOTIVATED:

All employees are motivated. They give the rewards and awards to the achieved people.

15

2.7. BENEFIT:
PROVIDENT FUND (PF):
Grey tip online calculates and enables you to deduct and report on all PF statutory
requirements.
The company has a provision to mark an employee as PF Eligible or non-PF Eligible. For
all PF Eligible employees, automatic calculations of Employee PF Deduction, Employer PF
contribution and Employer EPS Contribution are done.

PROCEDURE FOR CLOSING THE PF:

They issue the FORM NO 10 & 19 C for closing the PF. It is settled after 2 months.

PROVIDENT FUND-8.33%

PENSION SCHEME-3.67%

ESI:
Provision to mark an employee as ESI Eligible or non-ESI Eligible
For all ESI Eligible employees, automatic calculations of Employee ESI Deduction and
Employer ESI contribution
Automatic computation and deduction of ESI on the Gross payout
Inbuilt features to continue deductions up to required period when an employee moves out of
the ESI limit. You do not need to remember to stop or restart the deductions.
ESI - Form 6 - Half Yearly Statement
ESI - Form 7 - Half Yearly Statement

LEAVE POLICY AND TYPES OF LEAVE:

The various leaves available to employee are Sick leave , Casual leaves,earned [ paid ] leave,
sectional/national holidays , maternity leave , Paternity leave.

16

Earned Leave:
The leave entitlement is 30 working days for each completed year of service and accrues
after completion of one year of service in the firm. She/he is also entitled for 7 days of Sick leave
and 7 days of casual leave. However, the two types of leaves cannot be clubbed together. Not
more than 2 days of casual leave would be granted at one time.

Casual leave:
Casual leave the approval needs to be taken by the Manager in advance. However, the leave
would be granted by the Manager based on availability of the staff required to do the routine
activities in order to avoid any hindrance at work.

Sick leave
Sick leave taken for more than 2 days a doctors certificate needs to be submitted to the
HR Dept. Intermediate Sundays/ declared holidays will be excluded from leave. Subsequently it
will accrue on April 1 every year. The maximum number of days of leave a Staff member may
accumulate is 40 days.

Maternity Leave:
The company has a provisions for a specified period of time that is designated as maternity
leave. This may vary form 3-6 months and is usually a paid leave. However, though leave may
be granted, most women may have to undergo subtle discrimination once her colleagues come to
know that she is pregnant.

Paternity Leave:
Paternity leave may be granted as follows:
A period of 5 working days at full pay is provided for male employees on birth of each
child and a maximum of two children. This can be granted twice during the employees period of
service with the firm. This leave is to be taken within one month of the birth of the child.
Approval of the Head of Dept. needs to be taken and HR kept informed of the same.

17

Annual Holidays:
The following holidays of employee are New Year's Day, Independence Day [15 Aug],
Labour Day [May 1], Republic Day.

Paid Holidays [annual leave]

All full-time employees will receive holiday pay of eight straight time hours at their
regular rate, provided the following conditions are satisfied:
1. Work a full shift on the employee's last scheduled work shift prior to the paid holiday.
2. Work a full shift on the employee's first scheduled work shift following the holiday.

WELFARE MEASURES FOR THE EMPLOYEES:

Welfare benefits: Wedding, funeral, bearing benefits for injury and disease, emergency aid and
loan, disaster assistance etc.
Educational grants: Subsidies for employees' advanced study and educational fees for their
children etc.
Recreation activities: Culture and health activities, group activities, tourism and recreation
facilities etc.
Other welfare items: Festival grants, interests subsidy for the housing loan, employees' deposit
insurance, purchasing house with employee deposit, child-care and spouse dependants subsidies,
retired employees' benefits and other benefits etc.

ENTERTAINMENT PROGRAMMES ORGANIZED:

There is no entertainment programmes organized in the organization.

2.8. RELIEVING PROCEDURE:

Employ talk to the union leader and union leader will report these to the senior manager.

The employee will talk to the senior manager in person.

He informed at the same time to the HR Department.

The person informs date he wntsto get relived.

FORMAT OF EXPERIENCE:
18

The union leader addresses the employees performance on his experience.

The relieving certificate will be based on the employee performance, remarks and his
gratitude towards his work.

EMPLOYEE FEEDBACK COLLECTION:

The meeting will be arranged and the employees are asked to tell their problems on the
satisfaction, dissatisfaction on the companys working environment and the analysis made on
suggestion so as to reduce the cost to the company.

2.9. EMPLOYEES RETAINING:

The employees performances are tracked systematically and those who are in with their
poor performance are sent out. Because the company does not want to spend on training the
employees.

19

3. INTRODUCTION ABOUT FINANCE

The finance function deals with the procurement of money at the time when it is needed and its
effective utilization in the enterprise, as it is required to pay wages and salaries to employees and
to allow credit facilities to customers.
An important requirement for the success of any business organization is the provision of
sufficient amount of funds or capital. In cannot work unless it has got sufficient amount at its disposal to build premises,
meet day-to-day expenses and for several other purpose.
The event of capital-intensive techniques has increased the importance of finance. The
ambition of the plan an industrial undertaking will remain were dreams unless adequate
finance is available to convert them into reality.
Therefore it has become an important function of management to provide for adequate
finance for the functioning of the enterprises The assets that the firm has already invested in are
called assets in place, whereas those assets that the firm is expected to invest in the future are
called growth assets.
Though it may seem strange that a firm can get value from investments it has not made
yet, high-growth firms get the bulk of their value from these yet-to-be-made investments. To
finance these assets, the firm can raise money from two sources.
The contrast between this balance sheet and a conventional accounting balance sheet.

20

An accounting balance sheet is primarily a listing of assets in place, though there are
some circumstances where growth assets may find their place in it; in an acquisition, what gets
recorded as goodwill is a conglomeration of growth assets in the target firm, synergies and
overpayment.

FUNCTIONS:

Stationery and Forms.

Audit including audit by Government agency of income and expenditure of local bodies.

Accounts Training.

Preparation and interpretation of financial and account rules and codes, interpretation or
other questions of financial nature.

Conditions of Service, Pay, Allowances, Pay Revisions, Pay Fixation and Pension of
Government servants.

Dearness Allowance.

Commutation of pensions and compassionate gratuities.

The General Provident Fund and the Contributory Provident Fund.

Advance for the purchase of conveyances, house building, travelling, marriage festival
and other advances.

Appropriation Accounts and Audit Report.

Management of the Calamity Relief Fund.

Contract and Non-Contract Grants.

State Contingency Fund.

21

COORDINATE ACTIVITEIES WITH OTHER DEPARTMENT:

A finance department must also strive to coordinate the flow of funds with the
organization's activities, using long-range planning while preparing for short-term needs. This
involves timing, making sure the organization has sufficient funds for its activities when needed

22

BUDGET PROCESS
1.

A budget is a financial plan.

A budget becomes the primary basis and guide for the firms financial operations.

Most firms compile yearly budgets from short-term and long-term financial
forecasts.

2.

There are Several budget in a company:

The Capital budget highlights a firms spending plans for major assets purchased
that required large sums of money.

The Cash budget estimates a firms projected cash balance at the end of given
period.

TheMaster budget, ties together all of a firms other budgets; it is the projection of
dollar allocations to various costs and expenses needed to run the business

Short-Term Financing refers to borrowed capital that will be repaid within one year and helps
finance current operations.
Long-Term Financing refers to borrowed capital for major purchases that will be repaid over a
specific time period longer than one year.

OBTAINING SHORT-TERM FINANCING

A. Everyday operation of the firm calls for careful management of short-term financial needs.
B. Trade union
C. Promissory Notes
A.

The Financial specifies the amount of funding that the firm will need over various time
periods and the most appropriate sources of those funds.

Long term is used to buy fixed assets such as plant and equipment and to finance
any expansions of the organization.

B.

Long-term financing usually comes from two sources: Debt or equity capital

Debt Financing

Debt Capital are funds that come to the firm from borrowing through lending institutions or
from the sale of bonds.

23

A Term Loan Agreement is a promissory note that requires the borrower to repay the loan in
specified installments.

A major advantage is that interest paid on a long-term debt is tax deductible.

Long Term Loan are often more expensive than short-term loans because larger
amounts of capital are borrowed and the repayment date is less secure.

Most long-term loans require some form of Collateral.

Lenders will also often require certain restriction on a firms operations.

The greater risk a lender takes, the higher rate of interest it requires, known as
the risk/return trade off.
If an organization is unable to obtain its long-term financing needs from a
lending institution, it may decide to issue bonds.

A bond is a company IOU, a binding contract through which an organization agrees

to specific terms with investors in return for investors lending money to the company.

C.

Indenture terms are the terms of agreement in a bond.

Secured and unsecured bonds

A Bond is a long-term debt obligation of a corporation or government.

Investors in bonds measure the risk involves in purchasing a bond with

the return (interest) the bond promises to pay.

Secured bonds are issued with some form of collateral, such as real estate,
equipment, or other pledged collateral, such as real estate, equipment, or other
pledged assets.

Un Secured bonds are bonds backed only by the reputation of the organization
and bondholders trust in the issuer.

D.

Equity Financing

Equity Financing comes from the owners of the firm.

It involves selling ownership in the firm in the form of stock, or using retained
earnings the firm has reinvested in the business.

E.

A business can also seek equity financing from venture capital.

Selling stock

One way to obtain need funds is to sell Ownership Shares in the firm to the public.
24

Purchasers of stock become owners in the organization.

25

3.2. STRUCTURE OF FINANCE DEPARTMENT

Executive Director

ASS. General Manager

Manager

Clerk
PAY OFF DEBTS
Finance departments must also pay back their organizations' creditors in a timely and fair
manner. This means ensuring they give investors a fair rate of return. This shows creditors the
organization can be trusted and has been managing its funds wisely, making them more likely to
continue investing in the organization

3.3 ROLE AND RESPONSIBILITY OF THE EMPLOYEE

Roles and responsibility of the finance department employee they should properly
maintained the accounts book and manage the daily expenses. Any check collected from he
supplier immediately record to account book. Every day they submitted the account book to
higher officer.

26

27

3.4 SOFTWARE SUPPORT:

Financial department adopted the own software support all the activity through own
software. The company is also using the net banking facility.

3.5BUDJETING:
The company prepares yearly budgeting. The cost of the budget amount more then 10 cores.
Finance manager and Ass.Finance manager prepare the budget. Budget preparation based upon
last year expenses.
Allocation of Funds
1. Purchasing Raw material
2. Diversification of business
3. Advertisement
4. Salary and wages give to the employee
5. Daily expenses

The two principal objectives of the Finance department are

To protect and strengthen the bases of financing the organisation's activities and to provide
efficient and comprehensive financial accounting and reporting for these activities, and

28

To ensure that the delivery of the Office programme of work is expedited through efficient
financial and administrative procedures while at the same time ensuring adequate financial
controls.

Finance Allocation cash to various departments

Allocation of cash done by the accounting department, it is one of the main activities in
the organization. This is according to the needs of the each department, the requisition given to
the marketing department in the organization. It comes with the accounting department in the
organization. All cash allocation carried by the marketing department.

Strategic aims
The strategic aims of the Finance Department are:

Maintain tight stewardship over the Universitys financial resources, ensuring that
financial funding in the form of cash and loan facilities are available for managed

strategic growth without over commitment.

Increase transparency of income and full costs of activities across the University.
Maintain and improve the Universitys financial control environment including the

management of financial risk.

Maintain and improve the financial systems and processes such that they are easy for
users to

Various books maintained by the company:

Main books
Cash book
Bank book
Goods received book & Ledgers

3.6. DAILY ACTIVITY OF FINANCE DEPARTMENT:

29

Finance department employee every day collects cheque from supplier and pay cheque to the
bank.

30

ACCOUNTING DEPARTMENT:
The various function of accounting department
Entering the bills in the proper register
Keep the attendance register for all department
Banking activity through the online
Differentiate the transaction as cash and credit
Payment for all petty expenses
Deposit cash in to bank
Make entry on expenses like DD commission etc............
Received cash from debtors
Tax activities
Enter all monitory transaction
Enter all expanses of the day

MANAGEMENT ACCOUNTS
There is an important distinction between management accounts which involves the
provision of information to managers for ongoing decision making, and financial accounting
which is concerned with the preparation of financial statements outlining the financial health and
performance of a company in previous time periods.

3.7. SOURCES OF FINANCE:

Once a business is up and running there are various ways of financing its expenditures.
Expensive items of equipment can be leased. Rather than buying the equipment the business
hires it from a leasing company. Motor vehicles, machines and office equipment are often leased.
Hire Purchase is an alternative way of purchasing items of equipment. With a leased item
you use and pay for the item but never own it. With hire-purchase you put down a deposit on an
item and then pay off the rest in installments. When the last installment has been paid you
become the owner of the item.
Another way of raising short-term finance is through an overdraft facility with a bank.
The borrower is given permission to take out more from their account than they have put in. The
31

bank fixes a maximum limit for the overdraft. Interest is charged on the overdraft daily.
Another common way in which firms can finance their business in the short term is through trade
credit. In business it is common practice to purchase items and pay for them later. The supplier
will normally send the purchaser a statement at the end of each month saying how much is owed.
The buyer is then given a period of time in which to pay.

3.8. PURCHASE ORDER:

The Purchase Order should state that Supplier Invoices be delivered directly to the Accounts
Payable section of Finance Operations
The Purchasing Division conducts training sessions for city employees with purchasing
responsibilities. The Purchasing Division continues to focus on computer technology, software
changes, and purchasing legislation updates, to improve the efficiency of the way we serve our
customers.

PROCEDURE FOR PURCHASE GOODS:

The Manager, Financial Operations is the custodian of this procedure and has overall
responsibility for ensuring that the following activities are performed:

Maintaining financial records.

Payments to suppliers.
Providing monthly budget progress reports to all schools/sections. Using the finance system
to control the cost centres budgeted expenditure.

The Manager, Procurement has responsibility for the maintenance of this procedure. Distribution
of Purchase Orders is the responsibility of The Financial Operations section at each campus.
Authorising Invoices for payment is the responsibility of the person who initiates the requisition
or their nominated receiving officer. The Asset Register is maintained by the Financial
Operations Section, The Purchase Order is forwarded to the supplier as confirmation of the order.

3.9. FINANCE ALLOCATION FOR RAW MATERIAL:

WAGES:
The company followed the time rate system for giving the wages to the Employees
32

PRODUCT COST:
Accountants prepare product costs to serve two purposes: Decision making by
managers, and external reporting.

CONTROL LOSS:
The company controls the loss through insurance .Every Year company allocated certain
amount for compensation loss.

MANUFACTURING COST:
Manufacturing, cost involves a companys factory Operations. It includes the costs
incurred in the factory other than the costs of direct materials and direct labor.
Manufacturing overhead to be considered as the cost of products for valuing inventory
and for determining the cost of goods sold.

3.10. INCOME STATEMENT MAINTAINCE:

Income statement is a company's financial statement that indicates how the revenue is.
The purpose of the income statement is to show managers and investors whether the company
made or lost money during the period being reported.

3.11. AUDIT PERIOD:

33

The sponsor has the right to audit agreement for up to 5 years after the submission of the
contract close up paper work

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3.12. FOREIGN CURRENCY TRANSACTION:

The company having the foreign currency transaction through intermediator .The
company pledge all security and stock to any local bank.The amount repayment in equal
installment basis.

BANK:
The company maintains the accounting in State Bank of India, Bank of India, and Tamil
Nadu Mercantile bank. The bank gives the overdraft facilities for raw material purchases. The
bank Calculated the interest based on RBI rules and regulations.

3.13. INCOME TAX:

There is no tax for manufacturing company. The company is not paying the Value Added

Tax.

PAYBACK PERIOD OF INVESTMENT:

The pay back period of company invested amount in 10crore.

3.14. FORMAL BUDJETING:

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A budget is a formal quantitative expression of management plans. Budgets can be made by

managers at any level including a single person managing a machine or operating a machine. In
the context of business, budget may have revenue, expenses and profits, all in a single Statement.
But one can think of a budget for revenues alone, budget for expenses alone.

3.15. SOURCES OF CAPITAL:

The company borrowing is borrowing 95% of money from outside. There are a number
of ways of raising finance for a business. The type of finance chosen depends on the nature of the
business. Large organizations are able to use a wider variety of finance sources than are smaller
ones. Savings are an obvious way of putting money into a business. A small business can also
borrow from families and friends. In contrast, companies raise finance by issuing shares. Large
companies often have thousands of different shareholders.
To gain extra finance a business can take out a loan from a bank or other financial
institution. A loan is a sum of money lent for a given period of time. Repayment is made with
interest. The lender of money needs to know all the business opportunities and risks involved and
will therefore want to see a detailed business plan.
The lender may also want some form of security should the business run into financial
difficulty, and may therefore prefer to provide a secured loan. Another way of raising short-term
finance is through an overdraft facility with a bank. The borrower is given permission to take out
more from their account than they have put in. The bank fixes a maximum limit for the overdraft.
Interest is charged on the overdraft daily.
Businesses may also qualify for grants. Government and private funds are sometimes
made available to businesses that meet certain conditions. For example, grants and loans may be
available to firms setting up in rural areas or where there is high unemployment.
A small business can also attract extra finance by taking on a partner or by selling shares.
The problem caused by bringing in extra people is that profits have to be shared. A further way
of raising capital that has become popular is that of venture capital. Larger businesses with cash

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to spare have been putting funds into small- and medium-sized enterprises. Once a business is up
and running there are various ways of financing its expenditures.
Expensive items of equipment can be leased. Rather than buying the equipment the
business hires it from a leasing company. This saves having to lay out sums of money and the
business does not have to worry about having to carry out major repairs itself. Motor vehicles,
machines and office equipment are often leased.

Hire Purchase is an alternative way of purchasing items of equipment. With a leased item
you use and pay for the item but never own it. With hire-purchase you put down a deposit on an
item and then pay off the rest in installments. When the last installment has been paid you
become the owner of the item. Large companies like Argos will raise finance in a variety of
different ways. Not only do they raise capital from shareholders, but they also take out loans
from banks to finance major capital projects. Capital equipment such as vehicles and computers
may be leased. In turn these companies will provide finance.

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4. CONCLUSION
All jobs and tastes and not free form difficulties. Yes I also experienced rust difficulties to
made me or accord with company. During the internship program I come across many
unforgettable experiences of my life where I learned the way to behave and polish my abilities at
the organizational level. And also as an intern I learn the skills required for a corporate life like
timely reporting, timely decision making, plotting academic knowledge into corporate world,
hard work, team participation and organizational overview and corporate relationship
management.
Overall I spent my time in training, learning and experiencing the various assignments
given by that the company.

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BIBLIOGRAPHY
Reference Books:
1.
2.
3.

Aswathappa.K, Human Resource management, New Delhi, 1999.

Biswajeet Pattanayak, Human Resource management, Prentice Hall, 2001.
Prasanna Chandra, Financial management, Tata McGraw Hill, 7th edition, 2008.

Website:
1.
2.
3.
4.

www.afl@vsnl.com
www.humanresource.com
www.citehr.com
www.economywatch.com

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