Shiva and Bannari Gap Study

Gap Study
Subject : GAP STUDY

Place & : Shiva TexYarn Limited, Dindigul.
Date 04th,5th and 18th Feb 2008 at Mills, 13th Feb 2008 at H.O.
Participants : Mr. D.L. Jeevandass KALPATHARU Software Ltd,
Mr. M. Kannan 1023, Avanashi Road,
Mr. S. Sasikumar Coimbatore – 641 018.
Ph: 0422 2212561
: At Mills: Shiva Texyarn Limited /
Mr. K. Prabakaran, GM Bannari Amman Spg Mills Ltd.
Mr. Mathavan, EDP Trichy Road,
Mr. Sivakumar, EDP Dindigul .
Mr. A.Sankar, Accounts
Mr. Kumaresan,Accounts
Mr. Venkatasubramanian,Stores
Mr. Ragunathan , Stores
Mr. Manikandan, Time office
Ms.Thilagavathi, Time office
Mr. Raj kumar, QC
Mr. Vasudevan, Electrical
Mr. Sagayaraj, Electrical
Mr. Saravanakumar, Despatch
Mr. Raja , Despatch
Mr. Dinesh Kumar, BASML I
Mr. Ramasamy, BASML I
At H.O: Shiva Texyarn Limited /

Mr. S. Seshadri, GM (Finance) Bannari Amman Spg Mills Ltd.
Mr. C.S. Balakumar, GM (Accounts) MTP Road,
Mr. Sankar Kumar, GM (Marketing) Coimbatore.
Mr. R. Rajasekar, EDP
Mr. Veera raj, EDP
Mr. Duraisamy
Mr. Natarajan
Mr. Gnanavelu
Mr. Sakthivel
Objective:
The main objective of the gap study is to understand the current mills practices and
procedures vis a vis Kalsofte ERP system. Every individual process followed by mills is
detailed and mapped to the procedures in the system during the gap study.
Result:
The gaps between the mills practices and existing system are captured and documented.
The captured details, module wise and process wise, are tabulated. Gaps and activities to
be carried out by mills / Kalpatharu during implementation have been highlighted.
Please go through the details for correctness and inform us of any variance or mis-
interpretation to enable us modify it accordingly.
Kalpatharu Software Limited Page 1 of 21

Gap Study
Organisation Hierarchy
Company 1 : Shiva Texyarn Limited. (Level 1)
Division 01 : Shiva Texyarn Limited, Unit I. (Level 2)

Division 02 : Shiva Texyarn Limited, Unit II. (Level 2)
Division 03 : Shiva Texyarn Limited, Wind Mill Division. (Level 2)
Division 04 : Shiva Texyarn Limited, H.O. (Level 2)
Company 2 : Bannari Amman Textiles Limited. (Level 1)
Division 01 : Bannari Amman Textiles Limited, Unit I. (Level 2)

Division 02 : Bannari Amman Textiles Limited, Unit II. (Level 2)
Bannari Amman Textiles Limited, Unit II – A Unit. (Level 3)
Bannari Amman Textiles Limited, Unit II – B Unit. (Level 3)
Division 03 : Bannari Amman Textiles Limited, Wind Mill Division. (Level 2)
Division 04 : Bannari Amman Textiles Limited, H.O. (Level 2)
Division 05 : Bannari Amman Textiles Limited, Weaving Division. (Level 2)
Division 06 : Bannari Amman Textiles Limited, Technical Textiles. (Level 2)
Note: Weaving and Technical Textiles divisions have not been considered in the
current scope.

Gap Study
1.1 STORES PURCHASE:

Mill System Kalsote ERP System
Supplier master details. Exhaustive details with latest updated information
( Data migration / export from the existing on supplier are available.
software to be done )
## Option to maintain more than one address for
supplier required with effective date.
Supplier addresses effective date validation to be
done while processing.
Supplier-Item / Item-Supplier Database. Up-to-date Supplier wise purchased items & its
## details and item wise supplier details with their
recent supplied details are readily available on line.
Purchase Indent Purchase Indent to be raised through the system

by the department. The indent follow up will be
done through the system.
Indent approval required before raising Purchase
Order - Mills require 2 Levels of approval. First
level by HOD / FM and second level by GM.
Order approval before Order printing is required.
PO enquiry PO Enquiry would be sent from the system, for the

items in the indent register. Suppliers list will be
prompted and the user can select the suppliers to
whom the enquiry can be sent.
Quotation entry and comparison being Quotation(s) from the multiple suppliers will be
done in one format. compared in the comparative quotation statement
(maximum of 5) is available. Apart from comparing
the present quotation, provision is there to compare
the price from previous supplies (price comparison
statement).
PO types are Cash and Credit purchases. Cash, Credit and Capital purchase options are
available.
Provision to raise PO directly from approved indent
skipping enquiry and quotation for regular items.
Receipt without PO option is available - To be
Blocked.
PO Amendment / Cancellation PO amendments are allowed through authorized

persons on selective criteria, like delivery schedule,
quantity, rate, specification etc. Items cannot be
changed.
PO cancellations are done through authorized
persons. Provision to close orders that are partly
supplied is available.

Gap Study

Purchase Budget provision done manually Department wise and Item Group wise budget
provisions are available.
PO Reports Quotation comparison, Budget utilization are some

of the specific reports other than the regular reports
like pending PO, PO Register supplier / Item / Cost
Centre wise, Pending Indent status etc.
PO Reminder Multi options of PO Reminder done automatically

ie. Supplier wise / Aging wise.
Indent Status Automatic updation of indent status after every

transactions, i.e an indent will pass through the
status of Enquiry / quotation / order / Received /
inspected / Stock.
Vendor Rating Vendor rating done more accurately based on

rating criteria.
Supplier Assessment (ISO purpose) ISO Requirement of supplier assessment is done

through the system.
Bill entry done by accounts Bill entry will be done in stores only. As requested,
bill approval will be done by accounts.
Mills to insist with suppliers on receiving
the Bills along with the DC / delivery so as
to close the PO then & there.
Materials received as Sample, on Sample handling provision without PO is available

verification sometimes accepted by raising in the system.
necessary PO if mills need them. This provision will be modified and mapped
Otherwise rejected sample is sent back. according to the mills requirement. Required
modification to the existing process will be done
during implementation.
Annexure for PO Printing required with Will be customised as per mills requirement.
comparison details.
Advance payment Supplier advance payments are linked to Financial

Accounting and it is referred against Bill Payments.
NOTE:
## - Templates for respective modules will be sent before commencement of implementation.
Mills need to collect necessary data and keep it ready to enable faster user training and
implementation.

Gap Study
1.2 STORES INVENTORY

Every item is identified by its code / name Following additional features are available in the
( Data migration / export from the existing Item Master:
software to be done ) • Visual Image of the item
## • Goods Receipt Tolerance for every item – eg.
Packing materials / paper cones / nuts and
bolts we can fix some tolerance. If 2% is the
tolerance and the ordered qty is 100 Nos. it will
accept up to 102 without the requirement of
approval.
• Self – Indent. Eg. For less value items, stores
indent process need not be followed. The store
keeper himself can give the items without
approved indents.
• Auto alert message for indenting when the
stock reaches Re-Order Level.
• Category Classification – Capital Items, Repairs
& Maintenance, Spares, Consumables, Civil
etc. with linking to Budgets and Accounts.
GRN Preparation Goods Receipt Note (GRN) at Stores will be

prepared against the Gate Inward entry only.
When party is selected, system will list all pending
POs against this party. Provision available to
prepare single GRN against multiple POs.
Provision also available to prepare GRN without
PO also. However provision available to restrict
this facility.
GRN Inspection intimation is manual Automatic alert message is given to the indenter for
inspection, once the material is received and GRN
is prepared.
Purchase Rejections Rejected Materials in Inspection would be sent

back to supplier through Returnable Gate Pass
(RGP) or Non-Returnable Gate Pass (NRGP)
prepared automatically by the software along with
Gate pass slip. The exact time of outward will be
entered against the gate pass at the Gate. This
improves operational efficiency.
System has the provision to segregate reason wise

rejections. For eg. 25 cones are rejected. Out of
25, 10 may be dimension not ok, 5 color not ok, 10
cone weight not ok as per sample. Segregation of
rejections will be helpful for effective Vendor
Analysis.

Gap Study

Material Issue request & approval. • Pro active approach for Material Issue -
Requisition is made on-line by the user.
Stock updation is based on reactive • Then Requisition approval on-line by HOD /
approach. FM. This can be made optional.
• Approved Requisition goes to store-keeper for
Issue of Materials.
• While issuing the material issue to the end-
user, Issue slip to be printed and store-keeper
to get the signature from the user on the slip.
Signed Issue slip is maintained as a record for
the transaction.
Stock Adjustments Receipt Adjustment - in the case of variance

between book stock and physical stock, excess
material received against 0% tolerance, Free
spares / sample items are accounted.
Similarly Issue Adjustment – in the case of variance

between book stock and physical stock, excess
material issued to floor or more consumption than
the estimated qty.
Inter unit transfers are done manually. By Having a Wide Area Network (WAN), System
has the provision for inter unit transfer of items
either RGP / NRGP method. Re-entry of data at
another unit is avoided.
Bill passing is done manually Bills entry / passing and approval against GRN are
automatic. When the party bill details are entered,
if there is any difference between the PO value and
the Bill value, automatic Debit / Credit Note
generation is possible and FA posting done
automatically.
Sub store concept Sub-store concept is followed in the system. Items

issued are transferred to sub-stores like
Maintenance, Electrical and Packing etc. Then on
actual consumption, based on maintenance Job
Card/ Packed Production, the item is considered as
consumed.
Gate Pass Process ERP provides various types of Gate pass system
like Returnable / Non-Returnable for Stores items
as well for Job order items. RGP reminders are
generated automatically. For eg. A material sent
out for service and the same has to come back in
15 days. If material not received within 15 days
from the date of RGP, system generates reminder.

Gap Study

Job Order Maintenance Job order sent outside is tracked by preparing the
Returnable Gate Pass (RGP).
Work Order Concept Worked order concept - for all repair works inside
the mill premises are maintained.
Per spindle consumption is monitored System helps to compare with industry norms.
manually
VAT accounting CENVAT and State VAT are handled through

system with the required reports.
Freight Accounting Provision to do the Freight accounting along with

the bill and or separately.
Bin Numbering System Provision available in ERP to have specific bin

number for individual items.
Stock Valuation Stock valuation is done in First In First Out (FIFO)

Mills are following the weighted average method for better accuracy.
method - agreed to switch over to FIFO
Method.
Reports: Multilevel consumptions reports like item /

Analytical reports department / machine / cost center wise.
System provides ABC Analysis (Consumption),

XYZ Analysis (Stock value), FSN movement
reports.
Various exceptional reports like, Excess stock, Age
wise stock, EOQ analysis done effectively.
1.3 RAW MATERIAL INVENTORY - SPINNING

Mills are currently using 100% Cotton as System has the provision to handle any materials
raw material. like Cotton, Synthetic & Melange. Both Local and
Import purchases of raw material covered.
Contract and Order Confirmation Contract / Order Confirmation processing is

Individual lot of 100 bales considered as a available.
separate Contract.
Order Confirmation Report (OCR) is
issued for each lot.
Lot Arrival – Individual bale weighing Sample and Purchase automatically from weighing
procedure is not in practice. Average bale machine and prepares bale wise weight report. If
weight on arrival is taken into account. the individual bales are not weighed, average

Gap Study

weight is distributed to all the bales. Material
accounting based on FOR / Spot Basis.
Lot Approval System provides for sample receipt, testing of lot

samples, quality details of lot arrivals. After
inspection, system compares sample test values
with the actual received material, and gives
deviation report. Provision to interface with HVI
testing and AFIS machine is available.
Issue to Mixing Mixing wise / Mix Number wise issues are

accounted. Provision to issue bales from multiple
lots of same variety also available.
Multiple Godown Stock Maintenance System will maintain multiple godown stock and
when the stock is moved from one godown to
another. Stock valuation is on landing cost basis.
Weight Difference accounting System generates a report on bale wise weight

difference recorded during receipt and issue.
Waste stock accounting Stock of different wastes produced is handled

separately and sale of different waste is also
accounted in the system. Sales details are
automatically transferred to Finance module.
Bill entry and payment is manual Bills entry / passing and approval against Lot
receipt is automatic. When the party bill details are
entered, if there is any difference between the
contract value and the Bill value, automatic Debit /
Credit Note generation is possible and FA posting
done automatically. Similarly for any allowances /
Premium also Debit / credit note are generated.
The new value after debit / credit note value is
added to mill lot value for costing purpose.
Reports: Other than the regular reports, following important

Reports are manually prepared. reports generated through this module are:
♦ Lot wise / variety wise stock
♦ Lot Reconciliation
♦ Supplier / Broker Assessment
♦ Mixing Cost

Gap Study
2.1 PRODUCTION - SPINNING

Scope of Spinning Division Scope covers from Blow Room to Packing.
Production Planning: Spin plan and balancing of machines are prepared

by the system depending on the product mix /
count change.
Mixing identification is with Mix number Unique mix number right from Blow room to
and Lot Number. winding for quality monitoring.
Transactions: Software has option of both automatic data transfer

Shift wise machine wise production, and manual feeding.
stoppage% and waste % are manually
entered and followed in stand alone Note – Automatic transfer from RIDA can be done,
software. provided the data are available in ASCII Form.
All Ring frames are linked with RING

DATA (RIDA).
Waste data maintenance System provides facility to enter the waste details
department wise, shift wise, type of waste like
salable / usable.
Process stock: Process stock is arrived at end of every day and

Process stock is manually arrived by 1st can be physically compared and verified.
of every month.
Contamination Monitoring
Contaminations collections & Rejections To be developed according to Mills Requirement.
are followed Manually. Mills to provide detailed requirement and freeze the
requirement at the earliest.
Reporting: Shift wise production status is monitored at the end

Shift wise production status is reported at of every shift for better control, in the case of
the end of 3 shifts, on the following day. manual data entry. If on-line data capture facility is
made available, the software will produce on-line
production for effective production monitoring.
Shift wise stoppage details and reason wise
analysis are maintained for analysis.
Standard reporting is made available Exhaustive production reporting is made available

for analytical purpose. For eg. Make wise
production, supervisor performance, workers
performance, Comparison of multiple frames mix
wise performance etc.
Yarn conditioning Yarn conditioning details are maintained in the

system.

Gap Study

Production comparison with mill own Provision available to compare actual production
standards and SITRA norms followed. with Mill Standards and SITRA norms.
Packing Production: Electronic weighing scale interface can also be

Are entered manually and stock reports provided to monitor actual pack weight and also to
are maintained. arrive at exact kgs of production so that more
accurate yarn realization can be arrived at.
Quality Control: ERP will provide interfaces with Quality control

Study details are gathered and reports are equipments which has computer connectivity for
prepared manually. online monitoring of quality data at the user
terminals. This would save hard copy printout and
reporting to Managerial staff through Quality
Control staff.
Quality Checking schedule also prepared System generated schedule will have a close
manually. monitor on Machines.
Linking with UT5, mills to organize for data

downloading to PC from the UT5 vendor. This is
applicable for all equipments in the testing lab.
Customer Complaints tracking. System will track the Lot number from the Invoice
details given in the customer complaint. Lot
tracking is to identify the nature of complaint given
by the customer and verify with the test results.
Limited QC study details / reports are Exhaustive study provision and reporting are
practiced available. Studies include the best practices
followed across the industry vertical.
QC Reporting: Report views and graphical representation for

Hard copy printouts and displays better analysis control. Any Schedule deviations
are also highlighted.
Conformance Status available in ERP based on the

predefined Norms and Tolerances.
Integration with Maintenance Automated interaction with Maintenance schedule

schedules. is available.
Manual interaction with Maintenance
schedules followed.
Production Incentive: Production incentive calculated on different

Employee wise incentives are calculated categories of employees in each department and
manually. linked to payroll software automatically. This gives
lot of accuracy and time saving during OT
calculation, weekly payments, incentive payments
and monthly payroll processing.

Gap Study

Monthly MIS reports are prepared by the Production MIS reports is available on date and on
department during 1st week of every the 1st day of every month without any manual data
month. adjustment. Production data cannot be altered for
designed results. The software will report 100 %
actual information.
Customer complaint and follow up actions. Quality complaints and follow up actions are
monitored on-line and the reports are as per ISO
requirement. Complete ISO requirement
maintained through the software.
QC Study actions: Software has provision to capture predictive

Based on QC study results machine maintenance activities to be carried out for any
setting changes are instructed manually deviations in quality standards. Alert messages on
and carried out. quality deviations are provided immediately to
control the quality.
3.1 MACHINERY MAINTENANCE

Scope All productive machineries in the plant for which
maintenance are done in Preventive, Break Down
and Predictive methods - based on worked days /
production kgs or fixed time period.
Machinery and Maintenance Details are System gives detailed predefined maintenance
maintained in stand alone software activities and its frequency decided by the mills.
##
Daily Schedule is followed. System generates machine wise preventive
Frequency based on “number of days” maintenance schedule with the items required for
only followed in Mechanical maintenance the maintenance activity.
Mills to work out the previous throughput Schedule frequency based on production tonnage
data for those items tonnage option is also possible for required schedules like card wire
recommended – e.g Card Wire. change.
##
Job Card Maintenance Daily Job Entry and completion are captured In the
job completion the items actually consumed will be
deducted from the sub-store and taken into account
for consumption reports.
Breakdown calls System allows entering the Break down request

and alert message is given to Maintenance
department for necessary action. Once the break
down completion is entered the items replaced for
the Break Down also captured. This will give the
actual Break down consumption value.

Gap Study

Third party AMC details System allows entering all the third party AMC
## details and their service bill details when the call is
attended.
Machine history System provides complete machine history details

## with all the calls attended and spares replaced.
Maintains Preventive / Breakdown / Predictive
activities list under each machine with the remarks
on each job.
Predictive Maintenance System allows for Predictive Maintenance based

on quality study observations.
Reports: • MTBF / MTTR – Mean Time Between

Failure / Mean Time To Repair.
• Per spindle Maintenance cost
• Budget vs Actual are some of the important
reports generated through the system
3.2 ELECTRICAL MAINTENANCE

Scope Scope includes for motors, compressors,
Generators and other panels and electronic
equipments. The schedules are done based on
running hours and in days
Preventive Maintenance: System generates Equipment wise preventive

## maintenance schedule with the items required for
the maintenance activity.
Job Card Entry Daily Job Entry and completion are captured. In
the job completion the items actually consumed will
be deducted from the sub-store and taken into
account for consumption reports.
Breakdown Calls: System allows entering the Break down request

## and alert message is given to Maintenance
department for necessary action. Once the break
down completion is entered Machine History details
are updated.
Third party AMC details: System allows entering all the third party AMC
## details and their service bill details when the call is
attended.

Gap Study

Machine history System provides detailed equipment history with
## the calls attended and spares replaced.
Predictive Maintenance: System allows for Predictive Maintenance based

on quality study observations.
Reports: • MTBF / MTTR – Mean Time Between

Failure / Mean Time To Repair.
• Per spindle cost
• Budget vs Actual are some of the important
reports generated through the system
3.3 POWER Module:

At present the data from the energy System has the provision for on-line data capture
meters were collected manually. from energy meters
Power Consumptions System generated EB bill similar to the original bill

submitted by EB Dept. System also generates EB
estimation from the actual units consumed.
Scope of Transactions This Power Audit Module will cover the Power
## Consumption, Generator Set Reading, H.T.Meter
Reading, Water Consumption, and Vehicle Diesel
Consumption.
FA Posting: The above information is automatically transferred

to Finance for P&L purpose as provisional entry.
Wind Mill Monitoring of the Wind power data through the

system to be developed after detailed study of the
accounting procedure of wind power generation.
Reports: Few important reports generated through this

module are:
♦ Power Consumption
♦ UKG report
♦ H.T.Meter Reading
♦ Water Consumption
♦ Diesel Consumption
♦ EB Bill Estimation
♦ Diesel Stock statement

Gap Study
4.1 Marketing : Yarn :

Marketing Activity:: Software has a separate marketing module for
enquiry handing, Proforma invoice and follow up till
the contract is made. Lot of information can be
provided from this module to the management for
strategic planning.
Scope System gives a full flow of marketing activities of

## Yarn.
Enquiries are registered
Technical feasibility is done.
If sample is required, sample request is generated

and given to production to produce the same as per
the technical specification.
Quotation is sent along with / without samples
Once the quotation is accepted, sales order /

contract is generated.
If we receive any customer complaints against this

sale, the sample yarn details / technical feasibility is
automatically linked to the customer complaint.
Various Reports are generated like enquiry

generated in a month, Region wise / Broker wise,
Enquiry vs Sales Order ratio etc.
EXIM transactions are carried out Exports related transactions and documentation
manually. are available separately under Exports sub-module
of Sales. A view on the same to be provided under
marketing.
Import related transactions and documentation to
be developed as per mills requirement.
4.2 SALES - Yarn :

Sales activities System provides facility for Yarn, Waste & Scrap
## Invoicing.
Sales Status Specific customer order, production status is made

available online for meeting effective deliveries.
Excise documents System provides all excise related and VAT related
registers like RG1, ER-1, MO3 (Hank Yarn
Obligation) reports. The State VAT Returns are

Gap Study

generated as per the new act. This facilitates the
mill to switch over to State VAT system easily.
The ITC taken into account from various purchases

and tax due by Sales accounts are reconciled.
Accounts Receivable is maintained in In the ERP environment accounts receivable is

sales and in accounts. There is a maintained based on sales and collection details at
duplication of work. one location which could be viewed by sales and
accounts department. There is no need for
maintaining it in two departments and doing the
reconciliation.
Reports Exhaustive reports are made available like pending

contracts, product ranking, customer ranking, auto
reminders to parties etc.
Formal procedure in handing contract This facility is handled very effectively through the
amendment and cancellation is needed. software.
Stock Valuation is done based on market Finished goods stock could be valued by COGM
rate or last contract / dispatch rate (Cost of Goods Manufactured) through effective
costing for accurate P&L.
Movement of stock is monitored manually. Stock aging by bag number wise is arrived at for
controlling the stock and reporting the stock value
age wise.
Scrap sales Scrap sales also part of sales and Distribution

module.
Scope includes local and waste sales. Scope includes Local, (Direct / Depot /
Consignment and Merchant export), waste and
scrap sales.
Data from depot and consignment are In ERP Depot and consignment sales can be
gathered manually over a period of time collected through mail on a daily basis and effective
dispatch and stock details by individual depot and
consignment agents are monitored.
Invoice serial number ERP is having separate serial number for different
category of sales, As per mills requirement suitable
modification to be done during implementation.
Reports Pending Contract Registers, Pending LC, Agent

wise / count wise / Country wise sales are
generated through the system.

Gap Study

Stock ageing for bags - Manually Available in the system.
maintained
Sales return Sales return transaction will be carried out in Sales

Module and the necessary credit posting will be
Credit notes are raised in accounts only. automatically done. Credit note to be raised in FA
system in reference with corresponding sales
return / credit posting.
Waste sales Provision to track by Kilograms, No of bag / borah

is available.
Allotment system in waste sales is being
followed. Will be customised according to mills requirement.
For export sales – documentation is Following export documentation is done through

prepared manually. ERP software.
• Quotation/Proforma Invoice
Provision to adjust the value of export on • Contract/Sales Order
negotiating the LC on submission of • Letter of Credit
shipping documents • Pre shipment Invoice
• Packing List
• Shipping Instructions
• Post Shipment Invoice/Packing List
• Shipping Details
• Insurance Details
• Quality Claims
• Debit/Credit Notes
Any additional requirements to be developed during
implementation. Provision for adjustment on LC
Negotiation to be made available.
5.1 HUMAN RESOURCE MODULE:

Bio Data collected and maintained System allows you to enter the Bio-Data and
manually database is maintained. This will facilitate to
## search for experience wise / job post wise, and
send interview letter automatically.
Training details are maintained manually System provides a comprehensive Training module
where we can maintain Training Schedule, list of
participants, feed back from the participants / Head
of Department after the training is attended. This
will facilitate whether some more training is
required for the employee or improve the quality of
the training etc.

Gap Study

Awards and Fine systems are manual System maintains the details of awards given to an
employee whether it is single award or group
award, reason for the award.
Promotions and Increments are System maintains the periodical promotions /

maintained manually. increments given to the employee so that we can
view the entire history of the employee from his
Date of Joining till date.
Family – Dependent details System facilitates to maintain the employee’s

dependent details, their relationship and nominee
for PF / Gratuity ESI.
Experience and Educational Qualification System has the provision to update the educational
qualification / other external training attended by
the employee, previous experience details
company wise.
5.2 PAYROLL:
Scope of the Module Scope includes Attendance, over-time, incentive
and complete payroll accounting records for all
individual Divisions.
Staff and worker attendance is maintained We suggest using any Attendance Recording
Partially in software. System which could be linked to our payroll. This
## will automate all the attendance activities.
Shift change for all categories System handles any shift rotation – clock wise / anti
clock wise – on a particular day or every 7th day.
Leave details System provides complete Leave register with

various types of Leaves like LWW / LOP / CL / PL
etc and generates Form15 leave card yearly.
Payroll System handles various types of worker categories

for payroll. System provides a versatile payroll
system to suite most of the textile mills.
Statutory Reports Statutory reports like Form3A, Form6, 6A, Form15,

ESI Form 6, Form 7 are generated through system.
Yearly Benefits Bonus, Gratuity, Scheme Settlement are taken care

in the system.
Visitors’ entries are manually maintained. System handles complete movements of Men /
Vehicles / Materials and provides various analysis.

Gap Study

4 types of Salary statement are being
followed
1. Earnings statement
2. Net Salary inclusive of all Additional reports will be developed.
deductions, OT, Incentive and
Deductions statement
3. Incentive statement
4. OT Statement
The following systems / activities has

been identified.
1. Van – Route link for employees Suitable modifications will be done.

2. GM advance
3. Attendance modification for
previous days within a month
4. Canteen Token
5. Guest House expense
6. Medicare
Staff advance at present is not linked to System handles employee wise advance given / re-
FA and HR department handles the same. payment details in Accounts when the payroll is
processed and authorized.
6.1 FINANCIAL ACCOUNTING:

Accounting is done in a stand alone ERP has a versatile Accounting package linked to
software. all its modules wherever it is necessary and avoids
manual entry. Only cash and bank vouchers and
## journal entries are to be done. The system is very
proactive in the following areas:
• Document generation (Voucher printing /
cheque printing / covering letter) Receipt
Printing / Dr/ Cr Printing
• Provisional entry
• Automatic Closing stock
• Online P&L and Balance Sheet (BS)
• Expenses Analysis – cost center wise
• Ratio analysis
• Budget monitoring.
P&L and BS generated for all Divisions and
consolidated statements generated for the
company. For unit level, only operational details
comparison statements can be generated – P&L
and BS cannot be generated at the unit level.

Gap Study

Accounts Receivables AR is comprehensive in the following areas and
automatic from Sales module:
• Customer wise / Invoice Wise / Broker wise
• Payment reminder printing
• Over due Interest calculation
• Ageing analysis
• Customer ranking
• Confirmation of Balances at the financial year
end.
AR view to be made available to both Sales and
Finance departments.
Accounts Payable: Accounts payable has the following features;

• Party wise / Bill wise
Manually age wise / party wise payable • Ageing analysis
statement is sent for Director’s approval. • TDS / TCS Deduction and Form 16 Printing
Voucher / Payments are prepared as per • Option of accounting account wise and specific
Director’s instructions. bill wise
• Form XVII / C Form Issue and Annexure
printing.
• Form 8 / 10 for C Form Register
Party wise / Age wise payables to be made
available on-line for Director’s approval to effect
payment on approval.
Fixed Assets and Depreciation are System has the following provision in FAD module:
manually maintained. • Asset Register
• Depreciation Method – Company Rate / IT Rate
• Asset valuation – SLM / WDV
• Depreciation projection
• Profit / Loss on sale of asset
• Queries on asset value.
Financial Control statements Other Salient features are:

• FBT
• Cash Flow
• Funds Flow
• Ratio analysis
Bank Reconciliation is done manually System has the provision for automatic BRS with
the soft copy of the statement received from
bankers or downloaded directly by mills.
Consignment / depot invoices Updates from depots to be obtained more

frequently (daily basis is suggested and ideal for
ERP environment) in order to have the Accounting
more accurate. Also all transactions of a month, to

Gap Study

be completed within the respective month.
Cheques on hand (Pre-signed) are Provision to be made available for handling this.
handled.
Service Tax being collected and Returns Necessary provision for the service tax to be made
filled manually. available for those items considered for service tax
by mills.
EPCG Licences, Terminal Excise Duty on Provision to be made available in the system to
capital goods and Duty Draw Back details update relevant details automatically and track
are tracked manually. them effectively.
Quarters Power Bill: Basic units paid by Provision to be made in Payroll.

mills and excess units borne by staff.
Insurance Policies for Employees, To be developed as per mills requirement.

Vehicles and Electrical Instruments and its
claims tracking is done manually.
Only Main cash book is currently being Multiple cashbooks can be maintained in the
practised. system.
6.2 COSTING :
Scope • To have a closer costing figure of count
wise/sort wise per kg. cost
• System collects all the required data from
various modules to arrive the costing factors.
• Different cost profiles are maintained for all
manufactured counts/sorts.
• Various reports for conversion cost on
estimation and actual.
• Contribution Report based on Ex-Mill Rate /
Net Rate / Profit per Kg.
Reports and Variance analysis manually System has the provision for automated
comparison of estimated and actual P&L
statements based on costing estimates. Revised
costing estimates are arrived and used for next
estimation. So variance gap would be made
minimum/nil over few iteration.
On-line query for Decision making System has the provision for on-line query of
costing estimates for yarn, comparison of
contribution statements on-line.

Gap Study
7.0 MIS MODULE:

Scope of the Module To provide On-line MIS information to
Management.
This module reports are customized as per Mill

MIS Reports formats in practice. Various MIS reports
specimen are available and mills to select
reports required for them as per Mill
Management’s requirement.
ERP has a versatile MIS Reporting. There is no

need to enter any details manually. All the
modules are inter-linked and required details are
consolidated automatically.
Following few reports are generated in the MIS

Module :
• Daily Management Information Report
- a one page summary of mill activities.
• Management Information Details on

Production – complete production, efficiency,
utilization abstracts.
• Department wise Performance Details
• Finished Goods Stock(Yarn & Cloth) Abstract
• Raw Material Stock for Spg. & Wvg.
• Attendance abstract:: Shift / Day wise
• Financial Status Report
• Over all Mill Performance

Shiva and Bannari Gap Study

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Gap Study

Subject : GAP STUDY

At H.O: Shiva Texyarn Limited /

Kalpatharu Software Limited Page 1 of 21

Company 1 : Shiva Texyarn Limited. (Level 1)

Division 01 : Shiva Texyarn Limited, Unit I. (Level 2)

Company 2 : Bannari Amman Textiles Limited. (Level 1)

Division 01 : Bannari Amman Textiles Limited, Unit I. (Level 2)

Kalpatharu Software Limited Page 2 of 21

1.1 STORES PURCHASE:

Purchase Indent Purchase Indent to be raised through the system

Order approval before Order printing is required.

PO enquiry PO Enquiry would be sent from the system, for the

PO Amendment / Cancellation PO amendments are allowed through authorized

Kalpatharu Software Limited Page 3 of 21

Mill System Kalsote ERP System

PO Reports Quotation comparison, Budget utilization are some

PO Reminder Multi options of PO Reminder done automatically

Indent Status Automatic updation of indent status after every

Vendor Rating Vendor rating done more accurately based on

Supplier Assessment (ISO purpose) ISO Requirement of supplier assessment is done

Materials received as Sample, on Sample handling provision without PO is available

Advance payment Supplier advance payments are linked to Financial

Kalpatharu Software Limited Page 4 of 21

1.2 STORES INVENTORY

GRN Preparation Goods Receipt Note (GRN) at Stores will be

Purchase Rejections Rejected Materials in Inspection would be sent

System has the provision to segregate reason wise

Kalpatharu Software Limited Page 5 of 21

Mill System Kalsote ERP System

Stock Adjustments Receipt Adjustment - in the case of variance

Similarly Issue Adjustment – in the case of variance

Sub store concept Sub-store concept is followed in the system. Items

Kalpatharu Software Limited Page 6 of 21

Mill System Kalsote ERP System

VAT accounting CENVAT and State VAT are handled through

Freight Accounting Provision to do the Freight accounting along with

Bin Numbering System Provision available in ERP to have specific bin

Stock Valuation Stock valuation is done in First In First Out (FIFO)

Reports: Multilevel consumptions reports like item /

System provides ABC Analysis (Consumption),

1.3 RAW MATERIAL INVENTORY - SPINNING

Contract and Order Confirmation Contract / Order Confirmation processing is

Kalpatharu Software Limited Page 7 of 21

Mill System Kalsote ERP System

Lot Approval System provides for sample receipt, testing of lot

Issue to Mixing Mixing wise / Mix Number wise issues are

Weight Difference accounting System generates a report on bale wise weight

Waste stock accounting Stock of different wastes produced is handled

Reports: Other than the regular reports, following important

Kalpatharu Software Limited Page 8 of 21

2.1 PRODUCTION - SPINNING

Production Planning: Spin plan and balancing of machines are prepared

Transactions: Software has option of both automatic data transfer

All Ring frames are linked with RING

Process stock: Process stock is arrived at end of every day and

Reporting: Shift wise production status is monitored at the end

Standard reporting is made available Exhaustive production reporting is made available

Yarn conditioning Yarn conditioning details are maintained in the

Kalpatharu Software Limited Page 9 of 21

Mill System Kalsote ERP System

Packing Production: Electronic weighing scale interface can also be

Quality Control: ERP will provide interfaces with Quality control