Textile Industry

Summer Training Prafful
INDEX
Chapter 1. 2. 3. 4. 5. 6. 7. 8. 9. Subject Executive summary Introduction Production Marketing Human Resource Management Finance Suggestion Bibliography Annexure Pg. No. 2 3 8 30 39 55 72 74 75
B.M. COLLEGE OF BUSINESS ADMINISTRATION
EXECUTIVE SUMMARY We have taken training in this company and they were very co-ordinating to us. Even they have made us very familiar to their unit in this short time. Their atmosphere is very friendly. We learned many practical application which till today we have learnt only on theory based. We got knowledge about textile industry. We have seen production unit of it and the materials and process of dress, sarees and embroidery unit in the company at Sachin. Many practical knowledge about marketing done in the market is made understood to us. The tricks that are used by the business mind is made understood to us. The trainer who taught us all the application of machine was really a fantastic guide. We loved to know about this industry and even they motivated and showed us about how we can start this business by ourself and earn nicely in this business.
MISSION AND VISION

OUR VALUES:
As a company, and as individual, we values integrity honesty, openness, personal excellence, constructive self-criticism, continual self-improvement, and mutual respect. We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners and employees by honoring our commitments, providing results and striving for the highest quality. Every successful company has a social responsibility to use its resources and influence to make a positive impact on the society. We focus on mobilizing our resource to create opportunities in the fashion sector where we do business, and to fulfill our commitment to serving the society good through innovative technologies and partnership.
OUR VISION:
To become big contributor in Indias textile exports within next few years. In the new millennium, we see a future full of potential. We are working to expand our capacities and exports every day, by continually improving and advancing our current and embarking on fundamental research that paves the way for tomorrows breakthroughs. The company is also evaluating the recent successes of corporate India through the mergers and acquisitions route and is looking for suitable partners to enter into European/US market. The company aims to become well known in customizes apparel designing for our valued customers. For this purpose we have established a dedicated design studio having latest equipments. Above all, we wish to remain a responsible corporate citizen and be admired to our achievements, in business as well as in society.
TECHNOLOGY
CAPABILTY
Present day customer requires perfection which also applies to fabrics. Manufacturing perfect fabrics requires adequate machinery. Keeping that in mind the board has installed Japanese and Korean make machineries comprising of Hi tech resign studio with latest software and systems where 6 to 8 printing designs 8 to 12 and embroidery designs with value addition are created on daily basis. Swiss, German and Japanese make embroidery machines with various value addition facilities such as sequins, cording and taping facilities. 6 chamber stanter Endless stitching machine Rapid jet dyeing machine Caustising machine for weight reduction of polyester fabrics Comfit Rotary and flatbed printing machine capable of 20 colour prints Screen engraving machine
CAPACITY
In house printing capacity 1 lac meters per day In house processing capacity of 2 lacs per day
Embroidery 20000 meters per day Capable of processing all kind of poly-blended. Polyester, Nylon and Rayon fabrics.
MANAGEMENT PHILOSOPHY
Prafful absolute personal following is an organization based on corporate principles of credibility, enterprising management and harmonious relations. Management of prafful aims to achieve objectives:
1. Anticipate Future Needs Of Customers Pay careful attention to changes in fashion trends; conduct extensive marketing to win hearts and minds of customers. 2. Think and Act globally, provide world leading technologies Along with increasing our market share and creating new markets, we must strengthen technological foundation sine this enables us to launch apparels with unique designs. 3. Be a Flexible and Dynamic Group By information sharing and the transfer of knowledge among group company so the synergy is helpful for the growth of the group as a whole. 4. Build friendly yet Competitive Relations with Business Partners To achieve mutual benefit, we must build friendly yet tense competitive relations with all our business associates and alliance partners. 5. Apply Environmentally Friendly Practices As we continue developing our business operations in various fields, we must keep environment issues in mind and make necessary provisions for it.
BLEND OF MANAGEMENT AND TECHNOLOGY

The Prafful management fully understands the challenges and advantages of having latest technology as well as skilled human power to achieve our goals. Technology management combination at Prafful is effective because of a clear understanding of the challenges of business and the skills of in the organization. Instead of imposing technology forcefully from the top, so they started to convince and train employees right from the bottom so that they can understand its advantages for the company and for themselves. Prafful manpower has the right mixture of management and technical skills needed to effectively use technology and machinery to achieve business success in this highly competitive global environment.
INDEX
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. Topic Layouts Process of Dress Production Printing Process Machinery Information Sari Process Embroidery production Types of threads Embroidery machine info. Page No. 10 13 15 16 18 25 26 26
Now we will see the layouts of the entire department. Dress, Sarees and Embroidery department layouts are as follows:
GREY DEPARTMENT
DRUMING
ACIDIFIED
MAIN GATE
WARE HOUSE
HEATING
SCOURING
HEATING
PRINTING
10
STEAMING & LOOPING
PRINTING
BATCHING
STORING & FOLDING (WARE HOUSE)
WASHING OFF
SCOURING & DYEING
WEIGHT REDUCTION
HEAT SETTING
DRUMING
GREY DEPARTMENT& STITCHING
11 GREY DEPARTMENT& STITCHING
SHIFFLY MACHINE UNIT MULTIHEAD & SEQUINCING MACHINE
WARE HOUSE
SHARING
MANUALLY MENDING MACHINE
INSPECTING
12
Productions of dress materials as well as saris are done in the production unit of pratfall textiles situated at Sachin G.I.D.C. At present we will see firstly dress production process. In dress production the common process of production is as follows:
PROCESS OF DRESS PRODUCTION

STITCHING OF RAW DRUMING HEATING SCOURING/ WEIGHT REDUCTION
ACIDIFIED HEAT PRINTING/DYING DISPATCHING This above mentioned method is the common method followed for preparing dress material generally for JORJAT, CRAP, POONAM DANII, JAPAN CRAP, Etc. The further process of printing is based on material that we are preparing. Materials are even based on length and width that is normally needed. As for example Siphon is needed for 52 in width. This 52 meters width siphon is passed through JET machine, then into UTube process or Long Tube Process
13
Before going to new process we would like to clear all the process in deep sense. (1) STITCHING OF RAW When the grey is taken from the godown for further process it is stitched so that it does not become joined with each other while washing. It is done by the labors on the machine called Chakri. (2) DRUMING In this drumming process a lot of clothes are there for shrinking purpose. In this clothes are shrinked according to the need for production. Clothes are normally shrinked at 120 degree. (3)HEATING As clothes are shrinked therefore necessary width heat setting is done and clothes are adjusted 200 to 220 degree temperature. (4)WEIGHT REDUCTION or SCOURING In this process clothes with heavy weight is put in to the machine and weight reduction is done. In which Sophlina machine is used. Suppose if crap cloth which is actually of 11 to 12 kg after 35% weight reduction it becomes 8 to 9 kg in weight. (5)ACIDIFIED In this acidified process cloth is washed in different chemical to remove to chemicals, dust or any stains from it. (6)HEAT In heating cloth is dried with high temperature and even folded after this process. (7)PRINTING / DYING After heating if cloth is designed for dying then required colour of dying is done. If not then it would be sent to the printing department. (8)DISPATCHING Means finally it would be dispatched from this department to the printing or to warehouse.
14
PRINTING PROCESS
ADHESIVE COATING BLANKET ATTACHING ROLL PRINTING DRIER AGEING LOOPING WASHING DRYING RE-DRIER FINISHING INSPECTING DISPATCHING
15
Printing process is carried on in two ways, directly on machine named ROTTERY or through labour machine that is FLAT BED PRINTING MACHINE.
ROTTERY
(1) This is automatic machine. (2) Hence fewer labours are needed. (3) Large quantity of production can be done. (4) Less supervision is needed. (5) Quality of the product is maintained. (6) Cost decreases. (7) Wastages are avoided.
FLAT BED PRINTING

(1) In this machine many colours means multicolour printing is possible. (2) Printing in this machine is quick and easy. (3) It is laborious work. This are the two machines attached in prafful for printing process. The capacity of rottery machine for12 hours is 4000 to 5000 meters. Production done for dress material is not only for prafful but even they are doing job work. It means the grey is given by the customer and the process is done in prafful and printing design is even selected by the customer. This work is called job work. Other print is even done like: (1) Over Print In this print printing is done on white and dyed cloth (2) Discharge Print In this print the background is cut and some new colour is added to it. (3) Brasso In brasso cloth is cut and it looks like some embossed cloth.
16
(4) Wat Discharge Overall printing is done. (5) Pigment colour Colour like silver or golden is added for more perfection and attraction. Now the printing process will be explained in detail:
PRINTING PROCESS
(1)ADHESIVE COASTING BLANKET This is the layer that is attached and polished before attaching the clothes to print. This move in circular motion taking clothe with it. Clothes get sticked on this blanket and hence designed is printed in same order. (2)ATTACHING ROLL In this step the roll cloth that is prepared is for Printing process in turned into roll and attached to the machine. (3)PRINTING In flat bed printing designs are printed one by one on the one screen. In rottery machine the printing is done through computer as design is setup in it. (4)DRYER Chemicals do not spread for that purpose dryer is done on the cloths. (5)LOOPING It is one type of steaming machine. (6)WASHING In this printing cloths are washed and so the harmful chemicals and stains are removed. (7)DRYING After washing, cloth is dried on 200 to 220 degree. (8)RE-DRIER Again drying is done so that is moisture part is left out then it gets removed.
17
(9)FINISHING Here the finished cloth is rolled and sent to warehouse. (10)INSPECTING Here in ware hose inspection of printed is done. (11)DISPATCHING Here finally it is given back to the customer or go to the designer for preparing dress.
This was the end of dress production. Now we will see to the process of saris. So in this we will see only the process and not deep explanation as it is done before. The process is as follows:
PROCESS OF SARI PRODUCTION

GREY Here in this process the cloths are stitched and specially jorjat.
GREY DEPT.
STITCHING
18
DRUM At 120 degree temperature cloths are shrinked and it depends on timing.52 width grey is provided and it is shrinked and its width becomes 30m. in jorjat and 40 to 42 in crap.
DRUM OPENING AND HEATING In saris 45 widths is necessary and so it is adjusted on stantar machine. It is setted at 200 to 220 degree temperature.
HEATING
19
WEIGHT REDUCTION Sophlina machine is set up in prafful. Weight is reduced up to 20% to 25% in this weight reduction machine.
WEIGHT REDUCTION MACHINE SCOURING AND DYEING Scouring is one type of washing clothes. And then cloth is dyed with some colours.
SCOURING
20
DYEING HEAT SETTING According to the width of the machine and for proper printing this process is undertaken.
HEAT SETTING MACHINE
21
BATCHING In this process batch is prepared according to the cloth and customer demand.
BATCHING PRINTING For printing a sari 18 screen machines are available in the prafful and even automatic machine is also available.
FLAT BED MACHINE
22
STEAMING This process is done for colour fixation.
STEAMING MACHINE
WASHING OFF Chemicals that are used for printing are washed off as they are harmful. (DUE TO SOME REASONS PHOTOS WERE NOT ALLOWED)
23
FINISHED Again at stantar machine it is setted on that hating machine.
HEAT SETTING FOLDING Here in warehouse saris are folded and packed for dispatching.
FOLDING
24
PRODUCTION UNIT OF EMBROIDERY

Now we will see the production of embroidery. Prafful has saris, dress and embroidery unit in their company. For embroidery purpose many different types of threads are needed. There we have found they are having two kinds of machine in their company multihead machine and shiffly machine. We will see the work of machines later on but firstly we will see to its process. It is only six step process. The process is as follows: JOB STITCHING EMBROIDERY SHARING MENDING INSPECTION DISPATCH
In JOB STITCHING process one Velcro attached cloth is stitched to the roll for attaching that roll to the embroidery machine. In EMBROIDERY on the cloths gets started according to the design that is setted up in the computer. In SHARING the threads that are left out at the back side is cutted out in the machine. In MENDING if on machinery at any place the embroidery is left it is done manually by the workers.
25
Then the stage of INSPECTION comes and where the whole bundles are checked and finally it is send to the warehouse for storing or dispatching. In dispatching the ready cloths are given back to the customer.
THE THREADS ARE AS FOLLOWS:

(1) Polyester (2) Viscos (3) Gold jari (4) Silver jari (5) Rainbow (6) Multi (7) Cotton Yarn These are the threads that are used in prafful for Embroidery purpose. Now we will see the use, capacity and difference between that two machines which are present in the prafful company. SHIFFLY MACHINE
SHIFFLY MACHINE All other machines are produced by many other companies in all over the world but this SHIFFLY machine is produced by on Lasser company in Swiss.
26
This is the machine which works only on the computer and designs are loaded in computer itself. The length of the machine is 21 meters. In this machine there are total 752 needles. This same machine is available in 15 maters also but it contains 524 needles. To maintain this machine room temperature should be maintained between 23 to 25 degree Celsius is needed. The roll that is attached on the machine for embroidery is attached with 5 pieces and one piece is of 44 width on an average. So from this we can know that the capacity of machine is very high. The difference between two needles is 25.4 mm that is in the case of 4/4 it means that when all needles are working and very small embroidery is done. The next type is 8/4. in this difference between two needles is 50.8 mm. in this type one needle one works and one do not work so it is done when some big embroidery designs are made. In the same way embroidery can be done in many other type. The needles can be stopped upto 16/4 that means 4 maximum 4 needles can be stopped. The speciality of this machine is that it works even in sequeen that is ticki work. After completion of embroidery work sharing in machine is possible. For sharing purpose also they have two kinds of machine (1) Austrian (2) Indian. But according to them the work is fast and with finishing is possible in Austrian machine. But Indian machine is installed to continue with the work when that machine is not in working condition.
27
MULTIHEAD MACHINE
MALTIHEAD MACHINE JAPAN TAJIMA This is the same type of machine like shiffly in length. This machine also works on the computer in which designs are loaded. In this machine heavy work saris are prepared. This machines are produced by many other companies but prafful has installed three countries machine. They are as follows: (1) Germany - ZSK (2) Japan - Tajima (3) China - Golden Falcon There is no wide difference between all this machines only their capacities are differing from each other. In this machine sequeen is used but in thread only Viscos and Jari yarn means Gold and Silver Jari Yarn is used and sometimes cotton yarn other yarn do not work on this machines. The maintainence of this machine is as same as shiffly and even distance between the
28
needles are also same. But the finishing is maintained nicely in the shiffly machine. Even heavy saris borders are prepared on his machine which are sold off in the market at heavy prices. After finishing the embroidery work sharing is even done manually machines cannot be used for this purpose. If some part is found damaged then mending is done on small machine used by workers. Finally inspection is done and sent to the finished department. This was the end of the production department and now further we will see: (1) Marketing (2) Human Resource Management (3) Finance
29
30
INDEX
Sr. No. 1. 2. 3. 4. 5. Topic Structure of marketing Department Process of products from Mill To Market Factors affecting the market Marketing Techniques Promotional Mix Page No. 32 33 34 35 36
31
STRUCTURE OF MARKETING DEPARTMENT

CHAIRMAN (D.N. AGRAWAL) BOARD OF DIRETORS
SHIV NARAYAN AGARWAL SHRI NARAYAN AGARWAL JAI NARAYAN AGARWAL
SALES MANAGER (Mr.MITHALAL) EMPLOYEES
This above mentioned is the structure of the marketing department. It is a partnership firm. Partners are their own brothers. Many other businesses are named and are running from this prafful company. The other names of their companies are as follows: (1) Prafful Fashion Fabrics (2) Prafful Exports (3) Prafful Overseas Pvt. Ltd. (4) Gangaram Synthetics Prafful is their logo and Trademark
32
How the products of Prafful comes to the market? Mill Godown (meters, length and width checking) Cutting according to the need and fashion Designing Directly comes to the stores
They find the market for their sales and according to the demand they make the designs and according to the fashion dresses are designed. Their dress designer is Ms. Zahira Mam . The demand is known from the televisions, magazines, designers. The selling is done at townlevel and middle level. In town level selling the demand is of new trend and cost is not at the centre. While in middle level selling the trend and cost both matters. In town level selling the demand of good fabric is important. While at middle level the fabric material is compromised. The company depends on sales turn over and not on the selling profit. Their sales volume per year is 35 crores. The selling techniques are usually based on relations as most of textile market depends on Marvadi group. There are more than 100 fabrics item present in the showroom of prafful fashion fabrics. Even designs are printed after evaluating the demand for designs and fabrics. After printing the materials is sent to the place from where that demand has occurred.
33
Factors affecting the market.

(1) Seasons The fabrics are demanded according to the seasons. As in summer cotton are are in high demand while in monsoon synthetics are in high demand while in winter crap and jorjat dresses and saris are in demand (2) Festivals As during festivals like rakshabandhan, diwali, chrismas, new year, navratri, etc. dresses and saris are given as gifts to their friends and relatives. So at that time demand is high according to the seasons. (3) Marriage During marriage seasons the dresses and heavy range sareess are in high demand. Even parents are given to the couples so that factor even affect the sales (4) Money market As when there are high crises in market then there is recession period and so it affects each and every business as there is no liquidity available in the market. So the money is engaged in any business and that affects the market. (5) Market up-downs As textile market depends on each factors so if any things happen in the world or inflation rises or decreses then also market sales gets affected. (6) Culture The demand of the dresses and saris depends on the culture. In gujarati culture heavy palav saris are in trend while in youngsters net and crap saris are in demand. In Punjabi culture heavy dupattas are in trend. This are the cultural factors that affect the market. (7) Customers Customers demand depends on their income, choice and quality. As income rises their demand rises, same way some customers demand for choices and some demand for good quality.
34
MARKETING TECHNIQUES that they are following are as follows: (1) Discounts Many discounts schemes are available in the market. They give to the regular customers upto 25% discounts and even they give discounts like buy sari range upto Rs. 2500 and get 1 free. (2) Phone conference Many buyers are buying the products from different corners of the world. That buyers give order on the phone. So this way customers are searched and order is given or taken and this is called phone conferencing. (3) Stock clearance If stock becomes dead stock then they sell it out at cost price or at low profit. They even give some schemes in which they sell out that saris at cost price but they gain customers. (4) Lot them some If the buyers buy in large quantity then they provide profit by charging low prices.
Their branches are in Surat at (1) Sagar shopping centre, Ring Road (this is for wholesale) (2) Bombay Market (for retailing) (3) Iscon Mall, Dumas Rd. (for retailing) Their ranging of sarees and dress materials is between 400 Rs. to 40,000 Rs. They found no competitors in this market as they sells their product in all the corners of the world. So they cannot find any difference or competitors in the market.
35
PROMOTIONAL MIX
Organizations combines specific ingredients of the promotional mix to promote a particular product. There are usually four elements in promotion mix; (1) Advertising :paid form of non personal communication about an organization or its products that is transmitted to a target audience through a mass / broadcast medium. Plus point : Flexibility allows you to focus on a small , precisely defined segment (eg. School news papers) or a mass market(eg. Base ball show = males , 35 50). Cost efficient reach large numbers at a low cost per person , allows the messege to be repeted , and can improve public image. Allows for repeating the messege lets the buyer receive and compare the messege of various competitors. Very expressive , allows for dramatization. Also used to build a long term image of a product. Trigger quick sales.
Negative points: Very costly usually. Rarely provides quick feed backs , or neceserily any feedback Less persuasive then personal selling Audience does not have to pay attention B.M. COLLEGE OF BUSINESS ADMINISTRATION 36
Indirect feedback (without interaction)
(2) Personal selling:They send their product to their different branches spreaded over the country and they do not sell their product to the local market or in the retail shop.they sell their product to the customers reaching to their door steps of their shops. (3) Publicity:News story from about an organization or its products or both , through mass media medium at no charge. Sponcer does not pay (generally) , may be expected / require to run advertisement in the media. Can be positive or negative. Publicity is at no charge (most of the time) part of public relations, a broad set of communication activities used to create and maintain favorable relations between the organization and its publics: Customers Employees Stockholders Government officials Society in general Publicity and advertising compared Publicity is primarily informative Advertising is informative and persuasive Publicity is more subdued Publicity does not identify the sponsor Publicity is free
37
Publicity is part of a program or print story and appers more objective Publicity is not subject to repetition Publicity is more credible Little control over publicity
Limitations of using publicity Media must judge publicity to be news worthy, timely, interesting and accurate. Cannot control the content or timing. May delete the most important part.
38
39
INDEX
Sr. No. Topic Page No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Introduction Structure HRP Objectives and Policies Recruitment Performance Appraisal Welfare activities Types of wages Comparison of time and piece wage Redressal System
41 42 43 43 45 46 48 49 51 53
40
HUMAN RESOURCE MANAGAMENT
INTRODUCTION HRM is a management function that helps managers recruit, select, train, and develops members for organization. It is concerned with peoples dimensions in organization. The core points are as following: Organization is buildings, machine or inventories but they are basically people. It is the people who run the organization. HRM involves the application of management function and principles. The function and principles are applied to acquiring, developing, maintain and remunerating employees in organization. Decision relating to employees must be integrated with other human resource decision. Decision made by human resource manager must influence the effectiveness of the organization. Effectiveness must result in improvement of product or service supplied to customer at reasonable cost. The definition of human resource management but the worth quoting is as Human resource management is planning organizing, directing, controlling of the procurement, selection, development ,compensation, integration, maintenance and separation of human resource, so that individual and social objectives are accomplished.
41
ORGANIZATIONS STRUCTURE
MD. Mr. PANKAJ AGRAWAL
Chairman Mr. D.N. AGRAWAL
Board of director Mr. Shri Narayan Agrawal Mr. Shiv Narayan Agrawal Mr. Jay Narayan Agrawal
H.R. Manager Mr. JITUBHAI DESAI
SALES MANAGER Mr. MITHALAL
42
HUMAN RESOURCE PLANNING PROCESS

INTRODUCTION Human Resource process is understood as forecasting an organizations future demand for, and supply of, the right type of people in the right number. It is only after this that the Human Resource Management department can initiate a recruitment and selection process. Human resource planning is a sub system in the total organizational planning. Organizational planning includes managerial activities that set the companys objectives for the future and determine the appropriate means for achieving those objectives. Human resources planning facilitate the realization of the companys objectives for the future and determine the appropriate means for achieving those objectives by providing the right type and right number of personnel. The definition of human resource planning is it is the process by which organizations ensure that it has right number and kind of people, at right place, at right time, capable of efficiently completing those tasks that will help the organization to achieve its overall objectives. Human resource planning, then, translates the organization s objectives and plans into number of advisers and sales managers needed to meet those objectives. Without a clear cut planning. Estimation of an organizations human resource need is reduced to more guest work.
ORGANIZATIONAL OBJECTIVES AND POLICIES

OBJECTIVES Provide good working condition. Cost reduction through better productivity and lesser reward and rejection. Established customer feedback system to ensure quick response. Provide training to achieve above objectives.
43
POLICIES Personnel policies are as following: The key- stone in the arch of management and the lifeblood for the successful functioning of the personnel management because, without those policies, there cannot be any lasting improvement in lab our management relations. The statement of intention indicating specially what the organization propose to do and suggest the values and viewpoints which dominate the organizations actions. The positives declaration and a command to an organization. They translate the goals of an organization in to selected routes and provide general guidelines that both prescribe and proscribe programmes, which, in turn, dictate practices and procedures.
Personnel policies in a man made rule of predetermine course of action that is established to guide the performance of work toward the organization objectives. It is a type of standing plan that serves to guides subordinates in the execution of their task. PRAFFUL LTD. have its policies. These policies are quite acquaintance to every employee and sales manager of the company. Some of them are as follows: They will provide a fair wage, good working condition, job security, suitable opportunities for promotion and development. There is Training for marketing and sales manager before appointing them at their jobs. To create a friendly and co-operative atmosphere for the employees.
44
Summer Training Prafful Salary of each employees and the executive is paid on the 15 day of every month.
RECRUITMENT INTERNAL RECRUITMENT

1. Employees Referred The human resource manager asks the present employees their opinion about the person required for the specific job and whether they know this kind of person. Often employees have friends or acquaintances that meet these requirements. 2. Previous Applicants They accept the applicants that they have received previously and so, on the base of qualification and experience work is allotted to the right candidate.
EXTERNAL RECRUITMENT
1. Employees Exchange They directly hire or contract with the Surat Union Labour Exchange. They generally need of hiring the workers in the season of marriage when there is high demand. All other recruitments are not done only these above mentioned recruitment are done.
45
PERFORMANCE APPRAISAL PROCESS

INTRODUCTION Once the employees have been selected, trained and motivated he is appraised for this performance. Performance appraisal us the step where the management finds how effective it has been at hiring and placing the employees. If any problem is identified, steps are taken to communicate with the employees and to remedy them. In simple terms performance appraisal may be understood as the assessment of an individual performance in a systematic way, the performance being measured against the factors like Job knowledge Qualities And Quantity Incentives Leadership Ability Co- operation Decision Making Versatility Health
Performance Appraisal is the systematic evaluation of the individual with respect to his or her performance of the job and his or her potential for development. A comprehensive definition is performance appraisal is a formal structure system, of measuring and evaluating and employees job related behavior and out come, discover how and why the employee presently performing on the job, and how the
46
Summer Training Prafful employees can perform more effectively in the future, so that the employee, organization and society all benefit.
Performance appraisal process follows certain step. In PRAFFUL also the traditional steps of performance appraisal are followed. The performance appraisal process in PRAFFUL goes as under. First step of performance of performance appraisal is to set the standards. These standards are based on various factors like works efficiency, attendance, attitude etc. the setting of the standards required a good understanding of all these factors. The importance of each factors us also different. Attendance is given the first priority, efficiency second and attitude third. This standard lays emphasis and punctuality of the person. The second step of performance appraisal is to communicate the standards to the employees or the executives to whom it is necessary to know what they are expected to do in the company. In this step a proper care has to be taken, because misunderstanding between the employees and between the management and the employees. After communicating standards to all the performance of the employees is appraised. The head of each department does the appraisal. After appraising the performance the head of each department submits his findings to the head of personnel manager. The appraisal is normally does the annually but the head of each department apprises the employees on the basis of his entire years work. The forth step is performed by the head of the personal department. He gets the information about the employees from each department. He compares actual performance with the preestablished standards .For this comparison he also concerned with the top most management After comparing the with standards if the head of personal department finds very big difference between the actual and the actual and the standard he discuss it with the top -
47
management as well as with the employees concern and his department head and takes necessary steps, to overcome those problems. Performance appraisal is also important from the viewpoint of giving incentives, reward and other financial incentives. Appraised data is also used for future reference also. It provides sound base in giving promotion or demotion to different employees.
WELFARE ACTIVITIES
PRAFFUL provides some facilities for its employees comfort and satisfaction. These facilities and activities are known as welfare activities. These facilities are considered very important because it keeps the employees satisfied. Following are the welfare activities provide by PRAFFUL to its employees: A proper canteen facility is provided to its advisers and executives. It provides morning breakfast, tea at noon, dinner etc. the outsiders can use this facility by paying a very nominal cost. Traveling allowance and dearness allowances are provided to every employees and executive. One casual leave and two permissible Leave in four months is given to each employees and executives. First aid boxes provided to all department of minor injuries.
This company has 500 labours of all departments which includes dress production unit, sarees production unit and embroidery unit. These workers are on wages so we can include them in HR. It has 100 employees working in all department in Surat. They are on salaried so they can be included in PM that is personnel management.
48
Time wage system

Wages paid on the bases of time spent on the job irrespective of amount of work done. Advantages:(1) Simplest easy to understand from both point of view. (2) Regular Earning and fixed and do not suffer from temporary loss of efficiency provide economic security and self-confidence. (3) Economical as no detailed record of output is requiring. (4) Clerical work is minimum. (5) Employer knows the labour cost. (6) No pressure of speeding the work so quality of work can be improved-best out-put can be shown. (7) Learners can concentrate on learning the best methods of work. (8) Union support. (9) Objective method. (10) Employee can calculate wage bill in advance. Disadvantages:(1) (2) (3) (4) (5) No incentive for better performance makes no difference between efficient and inefficient employee. In the absence of incentive, Productivity may go down unless close supervision is used. Guaranteed remuneration makes employee indifferent and complacent. Control over labour cost becomes difficult and more payment may be made for lesser amount of work. Basis for finding merit amongst the employee and promotion has to be on the basis of seniority.
49
Piece Wage System

Wages are paid on bases of amount of work done or output of the worker.
Advantages:
(1) There is a direct relation between efforts and reward.Provide incentive for Hard work. (2) Ambitious and efficient workers are provided ample opportunity to utilize their talent. (3) The method is just and fair to all.Efficient and inefficient workers. (4) Management can distinguish between efficient and inefficient workers. (5) The cost of labor per unit can be easily calculated. (6) Supervision cost is low. (7) Consumer is also beneficial. Disadvantages:(1) Difficult to fix rate. Employer can manipulate the employee by cutting the piece rate when they are producing large quantity of units. (2) Earnings of workers are not stable and they may suffer from temporary delay and difficulties. They feel insecure and dissatisfied. (3) In order to get high wages, workers work with excessive speed.This may affect their health and quality of the product also. (4) Not suitable for artistic work. (5) Workers may not stress quality so rigid quality control is necessary. (6) Trade union doesnt like this system as it affects their solidarity. (7) Clerical work increases. (8) Industrial dispute will increase.
50
Comparison between time wage and piece wage:Sr. no 1 2 Basis for comparison Basis for payment Nature of payment Time wage system Time spent on the job Minimum payment to every workers Piece wage system No of units produced No guarantee of minimum payment
Link with productivity
Wages are not directly linked with productivity
Wages are directly linked with productivity
4 5 6 7
Quality of work Cost of maintenance Supervision Trade union attitude
High Low High Supports
Low High Low Oppose
51
Fringe Benefit:Additional benefits paid to an employee in addition to normal wages and salary. Features: Supplement to regular wages. Not paid to workers for specific job or performance but to raise the interest in the job. Fringe benefits are the items for which a direct monetary value can be ascertained E.g. paid holidays, pension on the other hand services refers to the item such as dispensary , legal aid etc. Fringe benefits add to the workers standard of leavin They may statutory or voluntary.
Types of Fringe benefit: Payment without work E.g. Sick leave, paid vacations. Health and safety Benefit. Retirement benefits E.g. PF,pension. Subsidized housing, transport, lunch, free dress etc. Medical legal, child care, counseling etc. Interest free loans, holiday, homes etc.
52
REDRESSAL SYSTEM
DISPUTE SETTLEMENT
If any disputes occurs between labours it is solved by lower level management. LOWER LEVEL MANAGEMENT
LABOUR
If at this level disputes are not settled then it moves to next level that is middle level management. In this level labor to lower level management and from lower level management to middle level management disputes are taken.
MIDDLE LEVEL MANAGEMENT
LOWER LEVEL MANAGEMENT
LABOUR
53
Even if at this level disputes dont get settled then it is taken to the higher level management where it gets settled and even it is the last level of redressal system. This is the last stage in which labour to lower level management, lower level management to middle level management an finally middle level management to higher level management communication is done. HIGHER LEVEL MANAGEMENT
MIDDLE LEVEL MANAGEMENT
LOWER LEVEL MANAGEMENT
LABOUR
In any case disputes are surely get settled down coming in to the higher level management.
54
55
INDEX
Sr. No. Topic Page No.
1.
Financial Ratios
57
2.
Operating Cycle
68
3.
Working Capital
69
4.
Statement changes in working capital
71
56
Various financial ratio

(1) Liquidity ratio:
A. Current ratio = current assets current liabilities Current ratio is an index of the firms financial stability i.e. an index of technical solvency and an index of the strength of working capital, which means excess of current assets over current liabilities. A high current ratio is an assurance that the firm will have adequate funds to pay current liabilities and other current payments. Significance of current ratio, in brief: 1. Current ratio indicates the firms ability to pay its current liabilities i.e. day-to day financial obligations. 2. It shows short-term financial strength. 3. It is a test of credit strength and solvency of a firm. 4. It indicates the strength of the working capital. 5. It indicates the capacity to carry on effective operations. 6. It discloses the over-trading or under- capitalization. 7. It shows the tendency of over-investment in inventory. 8. Higher ratio i.e. more tan 3.22:1 indicates sound solvency position. Current assets = Inventories + Sundry Debtors + Other Receivables + Cash and Bank Balance = 100410353+ 28641749+24905854+3162757 =157120713 Current liabilities = Sundry creditors + Advance from Customers + TDS Payable + Other expenses payable =24035387 + 6465170 + 248427 + 18014725 = 48763709 = 15,71,20,713 4,87,63,709 = 3.22 times.
57
COMMENT: Here the companys current ratio is 3.22:1. That means companys financial position is in favorable condition. Assets are 3.22 times more than liabilities.
B. Liquid Ratio = liquid assets liquid liabilities Liquid ratio is also known as quick ratio or acid test ratio or near money ratio. It is the ratio between liquid assets and liquid liabilities. It indicates the relation between strictly liquid assets whose value is almost certain on the one hand, and strictly liquid liabilities on the other. The term quick assts refers to current assets which can be converted into cash imidiately or at the short notice without dimiunition of value. A comparision of current ratio with liquid ratio would give an indication regarding inventory position. Significance of liquid ratio : 1. It is the true test of business solvency. 2. Higher ratio i.e. more than 1:1 indicates sound financial position. 3. Lower ratio i.e. less than 1:1 indicates financial difficulty 4. This is an important ratio of financial institution. 5. It is a stringent test of liquidity.
58
6. It gives better picture of firms ability to meet its short term debts out of short term assets. 7. If the current ratio is more than 2:1 but liquid ratio is less than 1:1 indicates excessive inventory. 8. It is more of a qualitative nature of test. = 5,67,10,360 4,37,63,709 = 1.16 times.
Here, Liquid assets = Current assets - Inventories Liquid liabilities= current liabilities- bank O/d COMMENT: Here the liquid ratio is 1.16: 1 means its inventory position is considered satisfactory to the creditors. From this ratio, we have analysed that assets are sufficient to meet its current liabilities. Current assets are 3.22 times more than the current liabilities and liquid ratio is even more than 1:1 which is considered to be satisfactory. It is 1.16. C. Absolute liquidity ratio = cash + marketable securities Current liabilities It is a variation of quick ratio. When liquidity is highly restricted in terms of cash and cash equivalent, this ratio should be calculated. Liquidity ratio measures the relationship between cash and near cash items on the hand, and immediately maturing obligations on the other. The inventory and the debtors are excluded from current assets, to calculate this ratio. = 31,62,757 4,87,63,709 = 0.065 .
59
Generally, 0.75:1 is recommended to ensure liquidity.this test is more rigorous measure of a firms liquidity position. If the ratio is 1:1, then the firm has enough cash on hand to meet all current liabilities. COMMENT: But here, companys absolute liquidity ratio is very less than recommended which indicates that the companys cash balance is not sufficient to meet emergency requirement of debt.
(2) Net Working Capital Ratio :

Net Assets. (Net Working Capital = Current assets - current liabilities) (Net Assets= Fixed assets-Secured loan-Current liabilities) Net working capital is not a ratio.the difference between current asset and current liailities is called Net Working capital Ratio. The term current assets refers o assets which in the normal course of business get converted into cash over a short period, usually not exceeding one year. Current liabilities are those liabilities which are required to be paid in short period, normally a year. It is a measure of companys liquidity position. Generally it is understood that between two firms, he one having a larger net working capital has the greater ability to meet its current obligations. But this is not necessarily so. The measure of liquidity is a relationship, rather than the difference between current assets and current liabilities. At the same time, it measures the firms potential reservoir of funds. =108357004 33085617 3.28
60
COMMENT: Here net working capital is more than net assets so we can understand that company has the ability to meet its current obligations.
(3) Equity Ratio:

Equity Ratio = Equity Total capital employed Equity means share holders fund. This ratio indicates proportion of owners fund to total fund invested in the business. Traditionally, higher the proportion of owners fund lower is the degree of risk . = 3,30,68,847 Debt + Equity = 3,30,68,847 10,84,39,070 = 3.305 = 30.5% Here, company has 30.5% equity comparing to its total capital employed.
(4) Debt Ratio :

Debt Ratio = Debt Total capital employed Total debt includes short and long term borrowings from financial institutions, debentures/bonds, deferred payment arrangements for buying capital equipments, bank borrowings, public deposits and any other interest bearing loan. Capital employed includes
61
total debt and net worth. This ratio is used to analyse the long term solvency of a firm. = 7,53,70,223 10,84,39,070 = 0.695 = 69.50%
(5) Debt Equity Ratio :

Debt Equity Ratio = Debt Equity The relationship between borrowed funds and owners capital is a popular measure of the long-term financial solvency of a firm. This relationship is shown by the dept-equity ratio. This ratio indicates the relative proportions of depts. And equity in financing the assets of a firm. This ratio is calculated in various ways. It is known as external-internal equity ratio. Dept-equity ratio is determined to ascertain soundness of the long-term financial policies of the company. This ratio relates all external liabilities to owners recorded claims. When long-term financial ratio is calculated, term debts like debentures are to be considered. Shareholders funds refer to preference share capital, equity share capital, capital reserve, revenue reserve, reserves for contingencies, sinking fund for renewal of a fixed assets or redemption of debentures etc. less fictitious assets.
= 7,53,70,223 3,30,68,847 = 2.279 times.
62
Summer Training Prafful As acceptable norm for this ratio is considered to be 2:1. A higher dept-equity ratio is allowed in the case of capital-intensive industries , a norm of 4:1 is used for fertilizer and cement units and a norm of 6:1 is used for shipping units.
(6)PROPRIETARY RATIO:
Proprietary ratio relates the shareholders funds to total assets. It is a variant of the debt equity ratio. This ratio show the long term or future solvency of the business. It is calculated by dividin sharholders funds by the total assets. Significance: It indicates long term solvency of the firm. It shows the proportion of assets financed by the proprietors. It is a test of long-term credit strength. Higher ratio, says more than propriety funds total assets = 3,30,68,847 15,72,02,713 =0.21 = 21%
Propriety Ratio =
63
(7) Working Capital Turnover Ratio:

Working Capital Turnover Ratio = sales Working capital
This ratio is a measure of the efficiency of the employment of the working capital. It indicates the number of times the working capital is turned over in the course of a year. This ratio finds out the relation between cost of sales and working capital. It helps in determining the liquidity of a firm in as much as it gives the rate at which inventories are converted to sales and then to cash. = 24,36,44,837 16,71,20,713 = 1.55 times. Higher sales in comparision to working capital means overtrading and lower sales in comparision to working capital means undertrading. A higher working capital turnover show that there is low investment in working capital and there is more profit. COMMENT: Here our sales is higher than the working capital so it means the company has overtrading means its investment is low than compared to its profit.
(8) Inventory Turnover Ratio :

This is also known as stock velocity. This ratio is calculated to consider the adequacy of the quantam of capital and its justification for investing in inventory . a firm must have reasonable stock in comparision to sales. It is the ratio of cost of sale and average inventory. This ratio helps the financial manger to evaluate inventory policy. This ratio reveals the no. of times finished stock is turned over during a given accounting period.
64
Summer Training Prafful This ratio is used for measuring the profitability. The inventory turnover ratio measures how quickly inventory is sold. Its a test a of efficient inventory management. To judge whether the ratio of a firm is satisfactory or not, it should be compared over a time on the basis of trend analysis. Inventory Turnover Ratio = sales Average stock
Average stock = opening stock + closing stock 2 24,36,44,837 9,45,32,411 = 2.58 times. Significance: A high inventory turnover ratio is better than a low ratio. A high ratio implies good inventory management an indication of underinvestment. It will adversely affect the ability of a firm to meet customers demand. At the same time, a higher ratio reflects efficient business activities. A low inventory turnover ratio is dangerous. It is an indication of excessive inventory and over investment in inventory. A low ratio may be result of inferior quality goods, stock of unsaleable and absolute goods. A lower ratio reflects dull business an suggests that some steps should be taken to push up sales.
(9) Debtors Turnover Ratio :

This is also called debtors velocity or receivable turnover. A film sells goods on credit and cash basis. When the film extends credits to its customers, book debts ( or account receivable) are created in the films account: debtors expected to be converted into cash over short period and thus included in current assets.
65
Summer Training Prafful The liquidity position of the firm depends on the quality of debtors to a great extends. Financial analysts employ two ratios to judge the quality or liquidity of debtors turnover and average collection period. The question of account receivables arises only against credit sales. Debtors turnover establishes the relationship between net sales of the year and average Receivables. That is, it measures the number of times the Receivables rotate in a year in terms of sales. It shows how quickly debtors are converted into cash.
Inventory Turnover Ratio Average stock =
sales Average stock opening stock + closing stock 2 Sales Average Debtors
Debtors Turnover Ratio =
= 24,36,44,837 3,54,68,232 = 6.87 times.
(10) Creditors Turnover Ratio :

This is also known as accounts payable or creditors velocity. A business firm usually purchase on credit goods, raw materials and services from other firms. The amount of total payable of a business concern depends upon the purchases policy of the concern, the quantity of purchase and suppliers credit policy. Longer the period of outstanding payable is, lesser is the problem of working capital of the firm. But when the firm does not pay off its creditors within time, it may have adverse effect on the business.
66
Summer Training Prafful Creditors turnover indicates the number of times the payable rotate in a year. It signifies the credit period enjoyed by the firm paying creditors. Accounts payable include Sundry creditors and bills payable. Creditors Turnover Ratio = Average Payment Period = purchases Average creditors
Month in a year Creditors Turnover Ratio = 18,63,01,512 2,57,52,978.5 = 7.23 times.
A higher ratio shows that the creditors are not paid in time. A lower ratio shows that the business is not taking the full advantage of credit period allowed by the creditors.
(11) profitability Ratio :

Gross Profit = Gross profit Sales * 100 100
= 1,94,24,457 * 24,36,44,837 = 7.97% Net Profit Ratio = Net profit Sales = = *
100 100
14,75,287 * 24,36,44,837 0.61%
67
OPERATING CYCLE
ACCOUNTS RECEIVABLES
CASH FINISHED GOODS
RAW MATERIAL WORK IN PROGRESS
68
Meaning of working capital

Working capital is that which held to meet day to - day requirement of business, which changes from day to day, and which is converted into cash continuously. The risk element is low in it. working capital is also known as current capital, circulating and floating capital. some people call it variable capital also. There are two concepts of working capital. According to once school of thought, working capital means total of current assets.
Types of working capital Working capital
Permanent working capital
Variable working capital
Initial working capital
Regular working capital
Seasonal working capital
Special working capital
69
Permanent working capital

Permanent working capital is that which is permanently locked up in current assets. permanent working capital is of two kinds:
(1)
Initial working capital:
In the initial period of its operation , a company must have enough money to pay certain expenses.
(2)
Regular working capital:
It is required for maintaining regular stock of finished goods to meet the customers demands to pay regular business expenses etc.
Variable working capital

Variable working capital is that part of working capital which is needed to meet the seasonal demands and special needs. (1) Seasonal working capital
some business enterprises is require a larger amount of current assets during a particular.
(2)
Special working capital:
in any business enterprise some unforeseen events take place when extra funds are needed to meet with the situation.
70
Summer Training Prafful Statement of changes in Working Capital
2006-07
Current assets Inventories Sundry Debtors Interest received Cash and bank Balance Other Receivables TOTAL (A) Current liabilities Sundry creditors TDS payable (export) Advance from Customers Interest payable Dividend Payable Other Expenses payable TOTAL (B) (A-B) Increase in working capital
2007-08
Increase in working capital

87126992 13596982 24905854 3162757
Decrease in working capital
13283361 15044767 5347545 33675673
100410353 28641749 24905854 3162757 157120713
5347545 -
35645398 130321 598975 14687619 3912750 2584763 57560126 -23884453 132241457 108357004
24035387 248427 6465170 18014725 48763709 108357004 108357004
11610311 14687619 3912750 159003265
118106 5866195 15429962 26761818 132241457
159003265
159003265
71
72
Summer Training Prafful Atmosphere of the company is not suitable for the employees as it is very hot. Neatness is not maintained and chemicals are harmful to the human beings are used. Employees are not given allowances. Training is not given. Leave is not granted. Machinery problems like machine break down, changes in temperature, etc. are faced by the problems. Technical faults occur now and then but it is not solved urgently because of less visits of technical manger. Recruitment and selection procedure is not followed.
73
BIBLIOGRPHY:
Prafful Catoluge Managers of the department Books (1) Accounting Management (2) B.S. Shah (3) S. Chandra (4) P. kotler (5) Pamphlets
74
75

Textile Industry

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Textile Industry

Uploaded by

Copyright:

Available Formats

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

MISSION AND VISION

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

BLEND OF MANAGEMENT AND TECHNOLOGY

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

STEAMING & LOOPING

STORING & FOLDING (WARE HOUSE)

SCOURING & DYEING

GREY DEPARTMENT& STITCHING

B.M. COLLEGE OF BUSINESS ADMINISTRATION

11 GREY DEPARTMENT& STITCHING

Summer Training Prafful

SHIFFLY MACHINE UNIT MULTIHEAD & SEQUINCING MACHINE

MANUALLY MENDING MACHINE

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

PROCESS OF DRESS PRODUCTION

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

FLAT BED PRINTING

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

PROCESS OF SARI PRODUCTION

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

HEAT SETTING MACHINE

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

FLAT BED MACHINE

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

STEAMING This process is done for colour fixation.

B.M. COLLEGE OF BUSINESS ADMINISTRATION

Summer Training Prafful

FINISHED Again at stantar machine it is setted on that hating machine.