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The Indian textile Industry is one of the largest and most important sectors in the economy in terms of output, foreign exchange earnings and employment in India. It includes several sub-sectors: spinning, weaving, knitting and garments. It also uses different materials like cotton, jute, wool, silk, man-made and synthetic fibers. The textile industry has three main sectors: the organized mill sector (traditional weaving and spinning), the power loom sector (mechanized looms) and the handloom sector. 1.1OBJECTIVES OF THE STUDY 1. To acquire knowledge about the functioning of various departments. 2. To know about the overall organization structure in all departments. 3. To analyze management of the organization. 4. To study and analyze the financial position of the organization. 5. To understand major problem faced by the organization. 6. To give suggestions to solve the problem. 7. To identify the opportunities and threats of the organization. 1.2SCOPE OF THE STUDY To make organization study about KERALA LAKSHMI MILLS LTD at thrissur is one of the leading supplies of in cotton yarn in India. Beyond the Theoretical knowledge of the study it will helpful me to get acquaintance with working of an organization and its various departments. The project report covers the functioning of all major departments of Lakshmi mills Ltd., thrissur. It also includes the organizational structure of the firm. 1.3METODOLOGY OF THE STUDY The study was undertaken by personally visiting the various departments of Kerala lakshmi mills Thrissur. The primary data for this study is collected by direct interview with the officials of different departments of the company. Secondary data for this study is collected from company publication, reports, research reports, tally etc.

1.4LIMITATIONS OF THE STUDY 1. Some semantic barriers. 2. Lack of time for managers and executive to provide information. 3. The study is based on the primary and secondary data sources available. These sources cannot be taken as an effective source because it has its own limitations. 4. Some of these respondents were not very clear about their opinions. 5. The result of the study and there accuracy is depends very much on the data related by the respondent

2. HISTORY OF THE INDIAN TEXTILE INDUSTRY Textile have historically formed an important component of India. There is archaeological evidence from Mohenjo Daro, which establishes that the complex technology of mordant dyeing was being used in the subcontinent from atleast the second millennium India. India developed its textile, industry at an early stage and along with it, its textile manufacturing technology, Price to colonization, Indias manually operated textile machine where the best in the world and served in a model for production of the first textile machines in newly industrialized Britain and Germany. A mild climate meant that the lower strata of society could survive relatively cheaply. The huge trade surplus, the country enjoyed and wealth in natural resources enabled the nobility and the middle classes to live in luxury and comfort. This inhibited revolutionary change and cultured an atmosphere of complacency parasitism and conservation, which is still felt today. The textile industry covers a wide gamut of activities ranging from production of raw material like cotton, jute, silk and wool for providing high value added products such as fabrics and garments to consumers. The industry uses a wide variety of fibres ranging from natural fiber like cotton, jute, silk and wool to man made fibres like polyster, viscose, acrylic hand multiple blends of such fibres and filament yarn. The industry plays a significant role in Indian economy by providing direct employment to an estimated 35 million in people, by contributing 4% of GDP and Accounting for 20% of total export earning. The production process in textiles encompasses many activities like ginning, reeling, spinning, weaving, dyeing, processing, finishing and garment manufacturing. Because of the great diversity of activities involved, the grades of retails needed by the industry vary significantly. Thus from totally unskilled to highly skilled persons, cutting across caste, creed, religion, gender and experience, i.e. a greatly diverse work force fins employment in industry. 2.1Growth of Textile Mills in India In the post independence period, the number of cotton/ man made textile mills increased from 378 in 1951 to 1824 mills in march 1999. A newly five fold increase within a period of around 50 years. It can be shown as below.

Growth of Textile Mills in India Year Growth Rate Total Mills Spinning Mills 1995 846 1142 1996 874 1175 1997 909 1416 1998 1148 1569 1999 1294 1719 2000 1438 1782 2001 1504 1824 The Indian textile industry plays a crucial role with over 1460 organised units, 32 million spindles, 1.7 million power looms, 4 million handlooms, large number of small medium and large processing houses and approximately 1 lakh garments and hosiery units. This is a single largest industry in the country with an annual growth of 15 percent employing 20 million people contributing 32 percent Indians foreign exchange earning through merchandise exports. This industry constitutes 20 percent of the industrial production and 7.5 percent of GDP. The textile industry has certain inherent strengths and ready access to domestic cotton in abundant measure and generally at prices which are extremely competitive. It has cheap and skilled workers. It has a great tradition of exquisite designs which command admiration internationally. All the basic requirements are thus available for exchanging its performance.

2.2Textile Exports
The textile products continue to play an important role in the total export basket of the country. The data about export targets for 2004-05. For 2004-05 the target for the export of textiles has been fixed at US$ 15,160 million, against US$13,500 million set during 2003-04. Textile exports recorded a growth of 15.3% in 2002-2003 and 6.0% in 20032004.During the period April-November2004,textile exports were US$ 8348.5million, recording a growth of 4.6% as compared 6% to the corresponding period of previous year. The export of cotton textiles comprising yarn, fabrics and made-ups (Mill made / Power loom/Handloom) constitute more than 2/3rd of exports of all fibers/yarns/made-ups. Cotton textiles exports recorded a growth of 9.1% in2002-03 and 4.2% in 2003-04. During the period April-November 2004, cotton textile exports including handlooms were US$2144.1 million, recording a growth of 5.4%as compared to the corresponding period of previous year. 2.3


The cotton textile industry, the largest single industry in India, holds second place among the countries of the world in cloth production. With an invested capital of over Rs. 3,000 crores in 1,175 mills in India, the industry provides direct employment to nearly 20 million workers. It also provides indirect employment to many millions like the cotton growers, processors, handlooms and power loom weavers who are estimated to be over three million and innumerable cloth dealers and shopkeepers. FACTORS Suitable Climate Cheep and developed transport facilities including parts like Bombay and Canada. Availability of commercial and financial facilities and enterprising capital. In Recent years, this industry has also spread to a number of other states. The Reasons for this decentralization are. Cotton fiber could be shifted to long distances without increasing the cost structure too much; hence entrepreneurs preferred to locate their mills at market centre; Availability of Raw materials in all states. Development of transport and the communication facilities in all these states. Government encouragement for decentralization. 2.4 Cotton Textile Industry in Kerala In Kerala, there are about 24 cotton textile industries (Excluding NTC). Textile mill of Kerala now operates in hazardous. Most of the privately owned mill has closed down, as a result, a large number of workers lost their job. The raw materials such as cotton PSF, VSF for manufacturing cloths is not widely cultivated here. It is the either obtained from other states especially from Maharashtra and Tamilnadu or imported from outside India. Climate condition frequently changes, sot eh suitable arrangements have to be made in the factory to maintain the desired climate condition for the production of yarn. Some of the existing private mills are facing the problem taking over its management by the government. Cotton Textile Mills were taken over by Textile Corporation of Kerala and NTC, Those mills taken over also make huge losses with the last 5 years, only two hundred spinning and weaving mills were started in Tamilnadu. Mission and Vision

Every firm has its own mission. The companies mission is to provide employment opportunities to the people and thus to reduce the unemployment problem which is very crucial in our country. Till the present they are successful in it. The Kerala Lakshmi Mills ultimate vision or aim is to produce yarn at lower cost of production and to make it available to the people at a lower cost ensuring good quality.

KERALA LAKSHMI MILLS Kerala Lakshmi Mill is a unit of National Textile Corporation (A.P. K.K. & M) Ltd. functioning at Pullazhy, Thrissur. It was in corporate as public sector in 1961. The production 6

commenced in 1963.With an installed capacity of 24000 spindels. During the year 1974 the Mill was under silk Textile undertaking Act, 1974. The management of Mills rested with National Textile Corporation Ltd, New Delhi (a government of Indian Undertaking). And later with effect from 01- 04- 74 it was transferred to its subsidiary company. National Textile corporation (Andrapradesh, Karnataka, Kerala and Mahi) Ltd Bangalore.

3.1 COMPANY PROFILE Name of the firm : KERALA LAKSHMI MILLS PULLAZHI, THRISSUR (A unit of national Textile Corporation Business of the firm Board of Directors AP.K.K. & M Ltd Bangalore) : Manufacturing Yarns : K. Ramachandran Pillai (Chairman and Managing Director) H.P. Singh (Director Commercial) Koran John (Finance Director) B.S. Nanjunda Swami Company Manager (Company Secretary) : D.K.Sharma (General Manager) Supriya Bhai (Personnel Manager) Binoy P.Andrews (Spinning Manager) P.Shanmugham (Accounts Manager)

3.2History of the Company Kerala Lakshmi Mill is a Govt. Company under Public sector. It is at Pullazhi in Thrissur District.

The mill was stated during 1962 63 by late Karumuthu Thiagaraja Chettiar with OMS ring frames manufactured Ram Krishna Industries (RKI) in collaboration with OMC company of Japan. The mill was taken over in November 1972 along with other three units of Meenakshi Group in Kerala. The unit was nationalized on 01- 04 1974. The spindles were increased from 30960 to 41328. The National Textile corporation Bangalore is the head office of Kerala Lakshmi Mills. The NTC Ltd Bangalore is a subsidiary company of NTC Ltd. Delhi Head Office will purchase raw materials and sell the finished goods on behalf of Kerala Lakshmi Mills. The company produces 100% cotton yarn. Kerala Lakshmi Mills nationalized with effect from the silk textile undertakings (Nationalization) Act. 1974 along with other 103 mills all over India. At present there are 133 mills under NTC in Kerala there are 6 mills. The mill is now equipped with 41328 spindles (licensed capacity) of 41570 spindles) to manufacture cotton/ Blend yarn with balancing machinery required for this. The mill is manufacturing cotton yarn of 60s., 65s and polyster cotton blend yarn of 60 count. The products are sold at Bombay and Ahamabadad market. The mill is working 24 hours a day with 7 days working in a week. The mill, share holding of Rs. 114.46 lakhs is contributed by subsidiary corporation to NTC by way of Equity Share Capital. The chief executive of the mill is the General Manager who with his team officers looks after the management of the mill working under the guidelines and supervision of the Head officers. Present Position of the Company Spindle Capacity Licensed Installed Utilization Percentage Men employed day Number of working day Manpower The mill has on rolls a total of 475 workers and 27 officers and staff as per details shown below. Present workers Permanent Total 9 475 475 88% 482 351 41570 41328

Officers and staff Supervisors Clerical & Others Grand Total

8 6 13 27 502 =====

Employee Benefit 1. 2. 3. Employees State Insurance : 1.75% of salary is paid by employees and 4.75 % Provident Fund : 10% to employer and employee Kerala Labour Welfare Fund Board : Children Scholarship is paid by employer.

Work of the Unit The company works on all days in a week. The company works for 24 hours, 3 shifts and a general shift. The time of 3 shifts and general shifts will be as follows. General Shift 7 AM to 3.30 PM st 1 Shift 7 AM to 3 PM 2nd Shift 3 PM to 11 PM rd 3 Shift 11.PM to 7 AM The total production is calculated based on 3 shifts. The total utilization is computed by multiplying total capacity (spindles), the number of working days and the shifts. Utilization = 41328 x 3 shifts x No. of working days 123984 x No. of working days in the month

3.3ORGANIZATION STRUCTURE The National Textile Corporation is a holding company. Its head office is situated in New Delhi. All over India N.T.C has 9 subsidiary company.


The subsidiary head office (AP.K.K. & M) is situated at Bangalore. There are three major divisions in the company, via, production department, accounts department and personal department, under production department, there are different sections like production, maintenance, quality control and finished products specializes technicians look after each section. The spinning manager is also functioning as factory manager and is in large of production departments. Accounts department headed by accounts manager is controlling, the financial aspects, costing and sales. Personnel manager looks after all personnel matters including labour problems, industrial relations, time office, wages, administration, recruitment, training, promotion, operation, and enforcement of all labour legislations like ESI (Employee State Insurance) Act, Provident Fund Act, Payment of wages Act, Bones Act and other relevant Act.






The various functions of the organization are carried through various departments. The process of assigning various tasks or activities in the different segment on a horizontal basis is called departmentation. It helps for proper administration of a company. There is a senior manager for each department and under the control of General Manager and other officers. In Kerala Lakshmi Mills Thrissur, Seven Departments are functioning. The various departments are below: Human Resource Department Finance Department Production Department Marketing Department Sales Department Quality control department Accounts Department



Human Resource Management in one of the most complex and challenging field of endeavour. The scope of human resource department is very vast. It includes all the major activity in the working life of a worker from the time of his of her entry to an organization until he or she leaves, comes under this department. Human resource management is the planning organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and social objectives are accomplished. Human resource department treats people as an important asset to be used for the benefit of organization, employees and society. It is emerging now as a distinct philosophy of management aiming at policies that promote mutual goals, mutual respects, mutual rewards and mutual responsibilities. STRUCTUE OF HUMAN RESOURCE DEPARTMENT HR MANAGER









Personnel Management


The Institute of personnel Management in the U.K. has defined personnel management is follows: Personnel management is that part of the management function which is primarily concerned with the human relationship within the organization. Its objective is the maintenance of those relationships on a basis which by consideration of the well being of the individual, enables all those engaged in the undertaking to make their maximum personnel contribution to the working of that undertaking. Principles for Maintaining Discipline 1. As far as possible, all the rules should be framed in operation in collaboration the representative of the employees, they will be much more likely to observe them. 1. All the rule should be appraised at frequent and regular intervals to ensure that they are continues to be appropriate, reasonable and useful. 2. Rules should be uniformly enforced if they are to be effective. They must be applied without expectation and without bending them or ignoring them in favour of anyone worker. 3. Rules should be varying with changes in the working condition of the employees. 4. Penalties for the violation of any rule should be clearly started in advance. Employees should be given the right to know what to except in the event of any infringement of a rule or regulations. It is better to punish them in the employees hand book. 5. Extreme caution should be exercised to ensure that infringements are not encourages. This should be done as a matter of policy. 6. A disciplinary policy should have in its objectives the prevention of any infringements rather than the simple administration of penalties. with



Finance is the most important function to be carried to achieve the progress of the organization. The function with finance department are diverse with distinction procedures for account related to personal purchase, stores marketing, work contract, costing budgeting, central excise etc. Payment for raw material and stores are being made in time. The mill in at present making all statutory payments in time. Increase in loss is mainly due to reduced production on account of capacity curtailment, shortage of labour and other problems. In addition to this reduction in the purchase orders from DGS & D and other Govt. departments has forced the mills to market them in the local markets which has bought down price. The market your prices continued through out the period and picked up only during the last of the year. The slow movement of bank yarn posed big problem to the corporation to reduce the prices of last you in order to liquidity the stocks. The finance Department in personally classified in to internal audit and finance and accounts. Under the Finance and Accounts section, there is a fire section. The section are sales incharge, cost accountant, cashier, chief accountant and purchase officer. Financial position Now the mill on the way to profit and a long term expansion is in a start. It is about 20 cores as a whole for overall expansion, all the old machineries will be replaced by modern and high production type machinery. The modernized will be fulfilled within one year. After the modernization the cost of production may decrease to 20% to 25% only because of the modern machinery. STRUCTURE OF FINANCIAL ACCOUNTING Accounts manager

Sales in charge


Purchase officer

Cash account

Accounts clerk



Among all the functional area of management production is considered to be crucial in any industrial organization. Production in the process by which raw materials and other inputs are converted into finished products. Organizational wealth is determined by production. In a specified period of time, the aggregate amount of goods and services produced in an organization is known as wealth. The time frame may be short, medium or long depending on the type of product or services produced. Production of goods as the fabrication of the physical object through the judicious are of the resources available to the manager. This resources include men, material, money, methods and machines. Production of services in nothing but the discharge of function which has some utility to somebody. The interpretation of the production of goods and services is a broader one. In general, the production is equated with manufacturing which in a myopic interpretation . Fundamentally, they may look alike the position being maintained in that there is no difference between tangible and something which provided advice, assistance, helper information. In both cases, outputs but they are not similar. PRODUCTION PROCESS 1) Removal/contamination The examined cotton is thoroughly sent for removing impurities and contamination. The contaminations are removed by hand picking which is better the machine picking 2) Mixing Cotton yarns from various processes are mixed for desired quality based on testing of these characteristics. 3) Blow Room Sequence of machinery line is used for gradual opening and cleaning of cotton. The voluminous cotton is converted into lap form.

4) Carding


Opening and further individualization of fiber and removal of trash and foreign materials lap is converted in to sliver form. Carded sliver is converted into lap form and combers. 5) Drawing Short fibbers are removed from sliver. By combing, better ruster and strength could be given to the yarn 6) Simplex Carded sliver are processed in comber frames. It is spun in uniform thickness. 7) Spinning Roving is converted into yarn of the required count by drafting, twisting and winding on the ring frames. 8) Cone Winding In this stage yarn is wound on paper cones known as cops. Cones are weighed depending upon the requirement. It is very useful in processing the next stages like knitting and wrapping. After finishing the process, the material is packed into bags. Spinning Unit The chief technical officer heads this department with three assistants Production manager, maintenance, supervision, and electrical engineer. The production department represents the various production processes flows in the factory. Methods of processing; Seed removed cotton is received in the factory either as composed bales. The cotton is taken to the blow room where it is mixed up and stored in the form of a stock, while the cotton is kept in the blow room. It becomes dry in order to get enough moisture water spray is used The cotton from the stock is put in the blow room machinery and the same get opened through the machinery, all heavy impurities and cotton gets converted into a sheet form. The cotton is rolled out and taken, this is known as a lap. The lap is then taken to the next department is carding section. Where the sheet form is converted as a sliver form. During this process also impurities are removed. The delivers are collected in level. If it is weighted 18

variation between one yarn of carding silver and the next yarn of carding silver will be more. To arrest there variation, this taken to next section known as drawing. When the silver is doubled and drafting the silver to become uniform. This silver is taken to next machine known as simplex. Where the silver is converted as rowing i.e. size reduction and the same is would on bobbins with little twist. If the yarn is combed count, the card silver goes to silver lab machine where silvers are made into lab and then goes to ribbon lab machine were the labs are doubled and drafted and made one again as lab and this lab is fed one comber where short fibers and labs are removed and finally comes out as comber silver. This combed silver goes to drawing, simplex, ring frames and then to winding. In case of doubling, rings caps go to CHEESE WINDING, where two ends are wound together and this taken to doubling machine where twist is imported to the yarn and wound on tubes and there tubes after conditioning goes to reeling. Cones are packed in case of bag and redid yarn are packed in bundles and taken baled. At last they are packed and made ready for dispatch. Yarn sticks for fiber includes strength, length, fitness and maturity. Yarn sticks for yarn includes strength level of imperfection and count variation
























Blending of cotton

Blow room Carding Comber preparatory [SB D/F UNI-lap comber Drawing

Opening of clearing Opening of clearing

Doubling of drafting. Lab preparation Short fiber of nap removal Doubling of drafting To minimize unevenness conversion of material from Sliver to Rowing to produce yarn fall elimination cone formation purchasing machinery spare parts procuring of cotton selling of yarn to produce every of distribution of energy greasing, oiling, servicing, etc

Simplex Spinning Cone Winding Stores Cotton Sales Electrical Maintenance Mixing:

In the first stage, cotton and polyester are mixed in certain proportion. Blow Room: The mixed cotton and polyester becomes a single thread and lap formatting occurs.

Carding: The sliver formation occurs in this stage. Drawing: 4 (or) 5 thick sliver are made into one night sliver in this stage.


Simplex: Thread is formed here. Doublers winding: Two threads becomes a yarn that has made fineness and is an export quality. Here the cheese formation occurs. A supervisor heads each and every department. He can complain to spinning master if there is any mistake in it. Factory is located in suitable place where there is abundance availability of raw materials, Labor, etc, it is worth-full as it is near to good banking credit facilities and attention must of road, air, transport services etc.

Marketing is the process of buying and selling goods and services. It deals with identifying and meeting human and social needs. One of the short definitions of marketing is Meeting needs profitability. The marketing department is headed by a marketing managers, All planning and strategy formation regarding the marketing activities implemented and promoted by this department of the company are deviser


Marketing concept Marketing concept may by be defined as a customer oriental philosophy that is implemented and integrated on organization to serve customers better than competitors and achieve specific goals. It means the philosophy belief or attitude of the management of the firm which guide its marketing efforts. But the modern concept is not confined to selling only. It takes into account an interaction of several business activities of customer need and desires. The marketing department of our company having market department head office headed by general manager of marketing, marketing information are collected from various years depot through local representative and analyses by market department. The company having yarn basis sales committee at head office, headed by on of the full time directed general manager of marketing, GM technical , GM of mills. The committee will review the marketing information and finance the product and price of different count of yarn. The allotment of yarn bag various depot and office are accepted depot on weekly basis. Once office are received from consigned agents. The mill sending the yarn to the godown in the respect count in the consignment agent selling the yarn to retailers at the market sender such as Harendi, Melgoan, in Chalkering etc. after the receipt of the goods the depot keeper remitting the sale proceeds to mills. The channel of distribution is being carried out the consignment . the yarn products are developed according to the demand received from the above market senders. The major product of the mills are60s pc yarn 62s pc yarn.45s pc,42s k,60sa k, cotton yarn etc.

CHANNELS The marketing is done by company through identifying agencies.


Identifying agencies




Retailers 25






General manager

Marketing staff of various department agents

Depot keeper (consigned agents)

Sales department also consists of MSP (Manager Sales Promotion) who handles sales promotion service and SRM (T), (Senior Regional Manager for Trading) who handles traded products. Chief sales manage who provides staff assistance to division head sales department exercises overall supervision of field sales besides coordinating the sales promotion activities. Functions 1. Monitoring of Sales in the area


2. Monitoring of prices and terms of Mill products vis- vis competitors. 3. Processing credit proposals for dealers and institution. 4. Processing proposals for extending special incentives / credit terms to dealers. 5. Committee work for appropriate cancellation of dealers 6. Processing proposals for special agreements / sales terms with bulk buyers/ commodity, boarders/ plantations 7. Sales force motivation through internal and external training programmes. 8. Processing and sending replies to audit quaries at divisional level. 9. Monitoring the MIS from market research department and from field establishments. 10. Monitoring over due and outstanding of area/ credit management 11. Co ordination of sales promotion and market developmental activities. Supervising and controlling the sales promotion service department. The sales manager heads the sales department. He does the processing from international and local market. The Sales manager will study the market trend and finally submit the market report to the managing director according to the market demand and customer taste. Direct sales By preparing direct invoice the products are sold to the customers directly. Depot sales In depot sales, agents are appointed at different places like Tirupur, Erode, Salem, chennimalai, karur and madurai. As per the requirements of the agents, the product is sent to the depot sales. Agents sell the products in their own name. Consignment Sales In consignment sales agents are appointed under separate contract and the same will be executed to each and every agent. Export Sales In export sales, agents or merchants are appointed. The buyer and seller enter into contract through agents and merchants. The company exports the goods to the buyer mainly to earn foreign exchange, Export sales may be direct Report and merchant report. Types of Sales Yarn can be classified as Hank Yarn, Cone Yarn. While both yarns are sold inside the home states and for export markets. It is a revenue generating departments. The sales department is divided into two types. They are: 27

(1) Export sales department (2) Domestic sales department Export sales department The export sales contributed to approximately 78% of total turnover last year. This year they are expecting more than that of the previous year. The following activities are carried on in export sales. The export sales depending on the market condition and Book orders for mills for quality with delivery schedule. On receipt of confirmation the export sales-incharge discuss with Director, Factory manager. Quality control in-charge for fulfillment of export, he has to make commitment within delivery time and commercial flexibility. Increase of any deviations in requirements ensures that the agent in writing agrees them upon before accepting the contract and the letter of credit is amended accordingly. In export sales, shipping agent plays a vital role. For exporting the goods, each and every company should obtain the code. In import and export sales, if anything goes wrong it becomes a great offence. The details in the contract review may include one or more of the following, 1) Count and description of yarn a) Number of p/y (single/double) b) Count c) Carded/ Combed 2) Size /Type of package 3) Specification like counting, co, aspect. 4) TPI, TPM, U %, imperfection and their tolerances. 5) Quality 6) Price 7) Mode of shipment 8) Destination Records: 1) Enquiries and order, contract review. 2) Contract file export. 3) Shipment Documents


Documents: 1) Government regulation for tariff export 2) Yarn specifications-export Procedure for export sale: If any company wants to become and exporter, they shall get the following things in order, 1) Importer and Exporter code 2) Reserve Bank of India 3) Registration cum Membership certificates 4) Textile committee register number The contracted quantities are shipped through the container within the specified time schedule after getting the letter of credit from the party. Before loading the container, the transport agents are evaluated by their part services (or) the conditions of the container are also checked before shifting into it and central excise formalities. All communications with customers regarding the contract are handled by export sales-incharge. In case of claims or concessions they are dealt with the director after contracting the normal export procedure handled by the export sales-in-charge. Domestic sales department The domestic sales department deals with two types of sales, Direct sales (local sales) b) Depot sales (through agent other than TamilNadu and there is also depot in TamilNadu). DIRECT SALES: The goods are sold to the parties directly. First, the customers give their parties directly. Then the customers give their orders and then the products are sent to the party. One copy is sent to sales department. Top management contracts them directly. On receiving the enquiries about the additional requirements from dealers (or) agents, the domestic sales-in-charge reviews the requirement of the dealers with the directors (or) factory 29

manager. After contracting as per schedule, the domestic sales-in-charge arranges to dispatch the bales through lorries. DEPOT SALES [AGENT SALES] The yarn produced from mills sent through the agents for sales this is based on the market conditions. The rate of products decided by agents only. The domestic sales-in-charge review the requirements of yarn with director and finalize it through phone after informing to the depot agent. All the amounts settled by agent. Depending upon sales the depot agents send the money by telegraphic transfer. The commission is payable to the depot agents are mutually agreed upon while arranging for depot initially and they are settled every month. CENTRAL SALES TAX: (Meaning) Sales tax is a tax on sales of goods. Liability to sales tax is determined on the basic of transaction, goods namely, 1) In the case of any Inter State sales, where the buyer and seller are in the same state will be chargeable by the state legislature. 2) In the case of any inter state sales, where the buyer and seller are in different states will be chargeable under TamilNadu General sales tax passed by the state legislature. 3) In case of sales during export and import.


The quality control refers to the ways and means where quality standard are maintained. The aim of quality control is not only to improve quality of articles, but also the elimination of bad quality goods. Once a quality standards is set, them it should be achieved and maintained in future and efforts should be made to improve it further. The Kerala Lakshmi Mill has set up a quality control department for the purpose of determining the quality of the product. Different types of tools are used for the purpose of checking control department consists of 7 people. He quality of yarn is checked day by day before its dispatching. Process of Manufacture 1. Cotton 30

Cotton bales are opened and mixed in Blow Room. The mixing is processed through Blow to clean the cotton and converted in laps. The laps is processed in carding to remove short fibres, to clean the cotton laps. The card silver is processed in Drawing for Parallelizing the fibers and to get an even silver. The drawing silver is processed through simplex machine and made in to roving. The required twist is also imparted in the roving. The roving obtained from simplex is fed on to ring frame when the desired count is obtained after giving required fraft and imparting the necessary twist required getting sufficient strength. The yarn obtained as above on the form of cops is fed to cone winding machine to obtain around 1.25kg weight in the form of cones. The cones are packed in HDPE bags to get a net weight of 50 kg each. 2. Polyster cotton blend Here the process is identical as above expect mixing of polyster and cotton silver obtained from carding section are mixed and processed from Blow Room to cone winding section just like cotton to get the blend proportion of 80: 20 in the final yarn and the packed in HDPE bags of 50 kg each.

3. Polyster viscose Here the required proportions of polyster 55% and viscose fibre 45% are mixing with a separate tint for identification. The rest of the processing is one just like that of cotton/P/C yard and packed in to HDPE bags of 50 kgs each net. 4. Stable Fibre Like cotton this is processed expect at mixing stage where Anti Static Agent is also aided. Production Process a) Mixing Mixing is the process of combining different varieties of cotton (raw materials) in order to prepare the desired quantity and to produce the yarn of expected quality at an expected price. b) Blow room


It is one of the primary attitudes of the production process. Hence cotton is brought down to improve the cotton. There are fine heating points in the blow loom. The importers are removed at the time of the heating prints. Here cotton comes to the mono cylinder in which cotton are made loose and they are cotted in sheets of 50 meters each. A 50 meter roll is called a bale or laps. They are transferred to the carding department. c) Carding The following operation are handled by this department. 1. To open small lifts of cotton is a stable of individual fibres. 2. To clean the cotton further by removing imparters, such as seed bits, bralees lowers, short fibres etc. 3. To convert the laps in to the form of a silver 4. Fibre (Convertion of laps in to silver) d) Drawing The carded silver are fed in the drawing section. The silver is processed and converted in to silver. It is again powered. This process is done to remove the minute particles and to strengthen the cotton fibres. The main object of the drawing process as to improve the uniformity of silver and strengthen the fibre composing the silver making them more parallel to each other.

e) Simplex / Rowing After drawing process simplex operation is carried out. It undertakes the activities of: 1. Reduction of thickness in silver 2. Even parallalisation of the yarn 3. To import twist in to the stand 4. To wind the rowing on the bobbin 5. To build the material & bobbin in to suitable shape f) Spinning The life blood of the production activity lies with spinning. It consist of a main machinery called ring frame. The operation carried on by the ring frame are: 1. 2. Drafting (i.e.) Thinning down or alteration of the rowing of silver Twisting: Manual work is mostly needed in its process due to break of yarn while it is winding in to the one 32

g) Winding The main function of winding is to wind from the spinning package and to remove the yarn defects. h) Doubling In this process two single yarn from the ones are twisted to get (say) 20yarn. It is called 2/ 20s yarn. i) Reeling The doubled copes are reeled in the reeling machine. The same is sent to the bundling department. j) Bundling In this process the reeled hands packed as bundles. Here each bundle are properly sealed with the name of mill. k) Packing In this process, bundles are packed one bale with help of bailing machine.

The main work of this department is to record the financial transactions. The day-to-day transactions are recorded in the proper book and are kept for reference. The transactions are first recorded in the journal as and when they take place. Subsequently these transactions are recorded in the bank book, purchase journal, Sales journal, Debtors ledger, Creditors ledger, etc. PROFITABILITY The primary objective of a business under taking is to earn profit. Profit earning is considered essential for the survival of the business. A business needs profit not only for its existence, but also for expansion and diversification. Profitability ratios measures the results of business operations or overall performance and effectiveness of the firm. They are designed to


highlight the end result of the business activities which in the imperfect world of ours, is the sole criterion for the overall efficiency of a business unit. INTRODUCTION OF ACCOUNTS The work accounting is referred as the languages of business accounting is done and designed to prepare the financial statement periodically once in a year. The main purpose of accounting is to ascertain profit and loss during a specified period and to show the financial condition of the business on a particular date to have control over the firms properly. All receipts and changes of the industry are recorded in the book of accounts. They are verified at regular at regular intervals. IMPORTANCE OF ACCOUNTS The company maintains accounts and records. It enables the company to ascertain accurately the financial result of its business operation and its financial position at the end of period on the other side. It also provides the shareholders of the company, public at large an it sight into the financial position of the company. It enables them to have more knowledge and purposeful control over the affairs of the company. The company act 1956 maker it compulsory for every company to maintain book of accounts in the prescribed manner and to make available to its members information contained in the accounts in the form of annual accounts. Accounting system of the industry is the process of identifying measuring and communication information of facilitates decision-making by use of the information and to meet statutory requirements. PREPARATION OF ACCOUNTING STATEMENT IS USEFUL: 1) To exercise control over expenses. 2) To give information about the deviations in the actual and planned performance and its remedial measures. 3) To give adequate information for decision making general purpose of financial salaries of the workers and staff. Journal entries are drawn to know the accumulation of the contribution made for respective employee. 34

JOURNAL DAY BOOK: 1) Purchase Journal - Cotton store, Credit sales 2) Sales Journal 3) Others BANK DAY BOOK The account is concerned with bank dealing only. All the receipts coming into the business by selling of yarn and waste are received by demand draft or cheque. They are credited and brought into the bankbook and payments are to the suppliers funds. Transfer accounts are property maintenance in this book. PURCHASE: Generally the purchase accounts are two kinds. Statement is prepared to serve the needs of owners. These accounts are prepared to serve the needs of Owners, Shareholders, Creditors or the employee trainee observed that data are feeded to the computer. At the end of the financial year accounts and various other reports are derived from computer. Manager is the chief of this department. MAIN LEDGER: 1) Cash Book 2) Bank day book 3) Purchase day book a) Cotton purchase b) Store purchase 4) Sales day book 5) Party ledger CASHBOOK: Accounts officer/ - Yarn sales - Journals other than the purchase, sales etc.,


All the cash transaction found in the cashbook. The expenses regarding staff salaries insurance (f/I) Life Insurance Corporation (LIC) are deducted from the wages COTTON DEALERS LEDGER: Issues from cotton stock for consumption are entered in this register for proper accounts of consumption. STORES PURCHASE: The following documents/records are by store department, 1) Purchase Requisition from various department 2) Enquiry from supplier 3) Quotation 4) Order placement 5) GRN.F Goods received note 6) Invoice Accounting 7) Posting of the suppliers accounting 8) Payment to supplier 9) Consolidation of the supplier account ISSUES: Factory Manager should sign issues indent. 1) Cotton Purchase 2) Store Purchase COTTON PURCHASE: The cotton department also maintained the following registers, COTTON ARRIVAL REGISTER: The cotton arrival from the various places are entered in this register with lorry number, date of entry etc. METHOD OF ACCOUNTS: 36

Opening stock + Cotton purchase_ Cotton issues= Closing stock for (both kgs/value) each 10 allotted separate pages in this ledger. All kinds of transaction found to have been made in daybook are in this ledger. Under appropriate names dealers in agency. The receipt and the credit as found in the daybook are respectively carried out in this ledger. All kinds of bank transaction are made and booked in bank daybook are also invariably carried in this book. GENERAL LEDGER: In this ledger the reads of main accounts are assets, liabilities, manufacturing trading and profit and loss accounts are made. 1) RATIO ANALYIS: The term ratio refers to the numerical of quantitative relationship between two items are variable. In other words it is statistical yardstick, which helps to measure the relationship between variable figures. A ratio analysis is the process of determining and Interpreting numerical relationship based on financial statement.

a) ISSUES ACCOUNTING b) ISSUE LEDGER c) STOCK LEDGER SUBSIDIARY BOOKS /SUB-LEDGER: 1) Cotton dealers ledger 2) Yarn dealer ledger 3) Store suppliers 4) Other Sundry party ledger 5) Advance ledger for staff (for tour purpose traveling advance) CASH VOUCHER:


1) Stores cartage voucher 2) Wages voucher 3) Cotton consumed export voucher 4) Sundry payment voucher 5) Service mills payment voucher 6) Civil work voucher 7) Medic aid to staff ledger LEDGER: All incumbents the dealer, supplier, staff, workers and servicing parties etc.,


Being a part of the trainee in KERALA LAKSHMI MILLS for 8 week helped me

realize the corporate values and helped me to appreciate the thoughtfulness of people in each department. The company produces 100% cotton yarn The chief executive of the mill is the General Manager who with his team officers looks after the management of the mill working under the guidelines and supervision of the Head officers.
The mill has on rolls a total of 475 workers and 27 officers. The company works on all days in a week. The company works for 24 hours.


Personnel manager looks after all personnel matters including labour problems, industrial relations, time office, wages, administration, recruitment, training, promotion, operation, and enforcement of all labour legislations
Human resource department of KERALA LAKSHMI MILLS treats people as an

important asset to be used for the benefit of organization, employees and society. Now the mill on the way to profit and a long term expansion is in a start. It is about 20 cores as a whole for overall expansion, all the old machineries will be replaced by modern and high production type machinery.
Production of goods as the fabrication of the physical object through the judicious are

of the resources available to the manager. This resource includes men, material, money, methods and machines.
The company having yarn basis sales committee at head office, headed by on of the

full time directed general manager of marketing, GM technical, GM of mills. Chief sales managers who provides staff assistance to division head sales department exercises overall supervision of field sales besides coordinating the sales promotion activities.

6. CONCLUSION The Internship training in Kerala Lakshmi Mills, Thrissur was very informative and gave me a very good experience to the various steps involved in the organization structure and disciplinary procedure in the company. I conclude by saying that discipline in essential for the smooth functioning of the organization and for the maintenance of industrial democracy. Without discipline, no enterprise will prosper. Kerala Lakshmi Mills adopt good discipline system in the company. This unit is growing day by day for management adopts well defined policies and procedures in order to achieve the organizational objectives. In this big organization it is very difficult to study all the disciplinary aspect of the company within the short period. How ever, I have


taken this opportunity to utilize it to its level best. I sincerely believe that the training would be immence use in my future endeavors. I once again give my sincere thanks to the management and workers who helped me to do the Internship training in Kerala Lakshmi Mills.