CHAPTER 3ORGANISATION OVERVIEW

3.1 ORGANISATION PROFILE

Vijayamohini Mills is the first textile mills started in Thiruvananthapuram. It is located at the eastern side of Thiruvananthapuram city. The unit is surrounded by the Military Campus. The mill is started in a campus which is about 10.5 acres. It was originally established under the rule no.6 of the Textile Nationalization Act 1974. The mill is now administered by the National Textile Corporation. The company has ISO 9001-2008 certification.3.1.1Historical Development of the CompanyVijayamohini Mills spinning unit stifled in the yam 1946 by Mr. NJ Nair with a paid up capital of 12 lakh. Though firm started in 1947, production began only in 1948 with a spindle capacity of 6720. Later the mill was handed over to Deva Ray Naidu, the owner of many textile industries in South India. The spindle then increased to 9360 in 1951 and mill was taken by NJ Nair in 956. The spindle was expanded to 15080 in 1959. The management was transferred to Sree Meenakshi Group in 1960. The expansion program they made increased the capacity of spindle to 25016 in 1969. But continuous losses and financial difficulties made the closure of the mill from May 1971 to September 1971.The growth of the mill was affected by problems like repeated change of management and administration. Thus there arises a situation where there was no managing agency. The administration was then directed to an organized Board of Directors. The Board then appointed an MD to control all the administration of the unit. Mr. Sundaram Chettiyar was the MD up to 1974.In 1974 the Nationalization of the Textile Industry Act was enacted. As per the rule no 6 Nationalization Act, the unit was undertaken by the Central Government. Now NTC is controlling the company. At present production capacity of the mills is around 5500 kg per day. The value of the production per day at present is established at 12 lakh. Under every subsidiary 10-15 mills were functioned. Now, all the subsidiaries are merged into one and NTC Mills are controlled by its Head Office at Delhi, through Regional Office at various locations. The raw materials are purchased from the Cotton Corporation of India. Vijayamohini Mills comes under the Southern Regional Office based at Coimbatore3.1.2 ModernizationModernization of Vijayamohini Mills had almost completed. The National Textile Corporation is directly implementing new machineries are brought from China and other sub machineries are from India. The latest technology is implementing for good quality products. 3.1.3 Nature of Activity This is a spinning mill engaged in the production and distribution of yarn to different parts of the country.The basic raw material of the company is cotton and polyester. Cotton and polyester are purchased, centrally by head office and allocated to each mill according to the spinning plan approved by head office. Each lot of the cotton / polyester received by mill is weighted and recorded in the register maintained. The cotton / polyester are issued to production department on the basis of moving weighted average cost.3.1.4 Future plans and proceduresThe future plan of the company is implementing good quality products and setting the new wage system for the employees.

3.2 Vision, Mission and Objective VisionThe vision of the company is to produce value added quality yarn and to be competent enterprise in field of textile industry.Mission To provide employment To have competent work force in the organizationObjectiveThe main aim of the Vijayamohini Mills is the technology up gradation of producing value added yarn.The Quality Objectives are: Customer satisfaction. Effective management of resources. Continual improvement.3.2.1 Product profileThe raw material cotton and polyester is transferred into the yarn through various processes. Yarn produced at different qualities like 60s PC and 50s PC, the mill produces cotton polyester blended yarn. That is cotton blended with polyester fiber yarn, which are cotton blended with polyester in the ratio of 30% to & 70% respectively.Raw materialsRaw materials are purchased centrally by the head office from the Cotton Corporation of India, Reliance Ltd and some other parties and allocated to each mill according to the spin plan by the head office. The cotton received by the mill is first weighted and then record the weight of each bale. The cotton is issued to the production department on the basis of moving average cost. The cotton purchased is tested at the central testing laboratory in Coimbatore.

4. ORGANIZATION STRUCTURE

Departmentalization is the efficient and effective grouping of jobs into meaningful work units to coordinate numerous. This creates flexibility, adaptability and unit of action within the firm. The various departments in Vijayamohini Mills are as follows:There are various departments such as Production Department HR Department Statistical Quality Control (SQC) Department Engineering Department Stores Department Finance Department

4.1 PRODUCTION DEPARTMENT

The head of the department is the factory manager, who is in effective control of the production process.In production department there are two varieties of raw materials. They are cotton and polyester.The raw materials arc obtained from the cotton corporations of India and Reliance Industries Ltd. Sometimes they will purchase cotton from private parties also. The unit is working under the instruction from regional office at Coimbatore. The production department consists of factory, engineering and stores. The engineering section consists of workshop and powerhouse.Functions of Production Department To prepare detailed production plan in consultation with the General Manager, consistent with company's production objective. To prepare detailed raw material plans and ensure the incoming quality standards, their proper usage, etc. Constantly evaluating alternate source of raw materials, direct trails of the same and to help the management to firm up the sources. Receiving of raw materials and packing of final products. Carrying out investigations and guiding management on long term measures for achieving expansions in the areas of production and quality. Integrating production with maintenance to ensure implementation of production and maintenance schedules and to avoid breakdowns by helping maintenance under take jobs on time basis.

PRODUCTION PROCESS

1) MIXINGAfter the cotton have been opened the raw cotton and the Polyester Spun Fiber (PSF) were mixed in a proportion of 30: 70 i.e. 30% cotton and 70% PSF and it will be feeded to the machine. The wastes and the seeds will be removed.The two major raw materials used in the yarn production are:1) Raw cotton from CCI2) Polyester supplied by Reliance industries The various steps in this process are as follows:1) The bales of cotton are taken out and accordingly to the mixing ratio, it is opened and spread on a large floor.2) Then another bale of polyester is laid over the spread out cotton, thus making alternate layers of cotton and polyester.3) After stock is made the material is allowed to stand for mixing up to 12 hours before feeding into the flow room. This process is done in a mixing room, which is at a lower temperature than that of the room temperature. 2) BLOW ROOMHere the impurities are removed and is converted into convenient package having the uniform weight per unit length for feeding the next machine.The different process taking place inside the blow rooms are as follows:1) Different types of impurities present in the cotton Polyester mixer are removed.2) To convert the loose and cleared mix into convenient package having uniform weight for feeding the next machine.3) Blending as mixing of fiber. Finally the process in the blow room helps to perform a thoroughThe different types of machine associated with this process and their operations are given below.a) Feed Lattice: The first part through which cotton is passed, where bale is opened.b) Bale is broken down to more opening.c) Step cleaner is used for more opening and cleaning.d) Hooper feeder is used for uniform feeding and to make constant amount of cotton to pass into.e) Porcupine opener which removes he minute particles.f) Then through the bypass it reaches the condensing .Gage which is the only way to the second proper feeder. From here there are two way to scrutchess.g) In scothing when a way is opened the other is closed .From here it goes to proper feeder for uniform feeding of two type of scuther is extended to increase production. The outputs that are obtaining from the blow room is Lap. Lap looks like cotton coiled in a thick rod.The process of the delivering of the mixture directly from the blow room to the carding section is known as CHUTE FEEDING SYSTEM.3) CARDINGThe mix from the blow room will be reached in the head of the machines in the carding section.The main objective of the carding machine is individualization of the fiber to file separation.1. Opening and claning.2. Mixing and blending of fiber.3. Drafting4. CoilingReducing the thickness of the laps to a filmy form and together this web is transformed into condensed form of silver. The carding is done through carding engine. The process helped to separate cotton fiber from impurities and remove short and immature fibers. The carding engine delivers cotton as filmy webs which are collected in a coiler can. Here, there are 35 high production carding machine and 7 high production carding machine. The machines have three units namelya) Licker -Inb) Cylinderc) DofferIn the first unit Licker- In further waste will be removed from the mix. Then this mix passes through the cylinder unit and then reaches the doffer unit.In the doffer unit loose fiber will be collected and be condensed and transformed into a rope form. Biog roping process is going on this department. The raw material processed in this department is known as carding silver. This carding silver will be collected in cans and each can will be filled within a time of half an hour.4) COMBERThe main objective of the combing process is to remove the short fibers, impurities present in the card silver. When the silver is passed through the comber machine, the short fibers are unmoved and thus larger staple length can be obtained. Comber functions as to remove fiber hook and parallelize the fiber, to bring about fiber to fiber separation and to remove short fibers. The carding process helps the spinner to produce cleaner and more over yarn especially in counts finer than be spun from the same cotton in the carded state.5) DRAWINGThe silver lacks uniformity of thickness and for straightening the fiber, the carded silver is processed in the drawing frame. Here silver are of uniform thickness by doubling process and the fiber get straightened by draw in the drafting process. Drawing machines are the types of machinery installed in this department. This silver from the carding process are stretched or drawn out from the drawing is narrower in which fiber have been blended and more aligned closely.Eight cans of card silver will be feeded to one machine in the drawing session. In this machine will 3 be rolled in between 3 upper rollers for the purpose of stretching. Eight cans of cards silver will be converted to one can of drawing silver.6) SIMPLEX SECTION/ FLY FRAMEHere in this section drawing silver will be feed into machine. The machine will condense the fiber more and small twisting will be happened to be drawing silver. The thread will become thinner. The level of silver determines the quantity of the yarn. In the simplex section the process of ROVING is going on.The silver drawn from the drawing departments are to be thinned out into a bobbin to suit the yam to the spin. The process of converting the silvers is done in the fry frame department. Machines used are model the product here is called Rover and it is passed to spinning section.First and second machines in the simplex section are from China. It has a better production capacity. Machines of 3, 4,5,6,7 and 8 are of LMW Coimbatore.In the case of China machines in the process of Roving each roving machine will have a maximum capacity from 4000 to 4500 metres. These machines could produce 120 Rovings in an individual 13 performance. In case of LRM machines the maximum and minimum length of Rovings can be adjusted to 4) the needs.The bundle of the Roving which will be feeded to the spinning is known aas Bobin.7) SPINNINGThe spinning is taking place in a ring frame. Here drifting is done and twisting takes place to give strength to the fiber. The output produced here is the yarn.The last stage in the manufacturing of yam is called spinning. The ring frames convert the roving received from the simplex machine into mthe yarn of the required count.The functions of the ring are:1) Drawing out of roving by means of rollers.2) Twisting the roving around the ring.3) Winding turn the twisted yarn into bobbins where there are such machines which converts rovings v3 into yarn.In the spinning section the fibers will be rolled through 3 over 3 rollers. In an individual performance cops can be produced from each machine. Cop is the end product of spinning department. There are 29 machines in the spinning department. In this department the size of the thread will be further reduced.8) WINDINGThe end product of the spinning is yarn in cone forms. Each cone will have an average weight of 1.250 Kg. There are 9 machines; out of this 3 are automatic machines.Another process in winding section is doubling. Single yarns are doubled, twisted together. These yarns used in power looms without sizing. Sizing is the process, applying starch to yarn.9) PACKINGIn the packing section the cones will be suitably packed and stored suitably for the domestic and exporting purpose.Cone: there are two types of packing. Each cone is covered using polythene bags. Such covered 40 cones are (3 are arranged as one bag and stitched. Gross weight is 52 kg (net weight = 50 kg)Cones are packed by using polythene bags of 40 in number and stitched with grows weight 52 Kg and net weight 50Kg. The product is known by the brand name 'Mohini warp' blended spun yarn and has its market mainly in Bombay. After accepting the tenders, purchasing orders are sending to concerning parties. Received goods are inspected by concerned departments which are certified by storekeeper on Good Receipt Inspection Report. There are some central stores purchase items which are purchased through the head office.

THE FINISHED YARN IS PACKED IN 13 X 16 X 40 size bag.While purchase of the material it should be cleared through agent or direct. It is to be verified in the main gate and allowed to store for the physical verification in the presence of intending person or the security guard.After the physical verification the material is purchased as per the order of (lie department ways as ascertain in the above figure.Then in the Mill store purchasing of the spare parts and the other purchases is done.The Mill store consists of three procedures they are:a) Procurement of the materialb) Consumptionc) PaymentThe persons in the Mill store consists of four staffs they structured as follows:PURCHASING PROCEDUREThe purchase material is recorded in the receipt book, which consists of:1) Purchase Order2) Store receipt3) Rate entry4) Date5) Name of the suppliers6) Particular supplier7) InvoiceThe spare parts of the machinery are purchased from the companies like: LEKSHMI MACHINE WORKS-COMIBATORE MAINTENANCE SCHEMEEngineering section also comes under the production department. The assistant engineer is in charge of this section. The Engineering department comprises of the powerhouse and the workshops. They undertake all the maintenance and installation of the machinery.QUALITY POLICYVijayamohini Mills is an ISO 9001-2008 certificated company. VMMs policy is to manufacture and supply yam in conformity with agreed specifications maintaining delivery schedule and ensuring full satisfaction to the customers.Vijaya Mohini Mills also aims at continual improvement of the following measures.1) By adhering to an effective quality management system.2) By creating awareness among all the employees about the importance of quality management system. 3) By creating most congenial and healthy working environment. 4) By maintaining close rapport with suppliers and customers. QUALITY OBJECTIVESVijayamohini Mills management has collectively fixed the following objectives for its operations and products.1) To achieve quality parameters of yarn measured in terms of CPs, Total imperfection and cone rewinding breaks to be improved by 10 % from the present level. 2) To improve spinning utilization of the mills 93%. 3) To reduce hard waste level at 0.3 %4) To achieve yam realization of 98 % for P/V blends 95 for P/C blends.5) To reduce power consumption measured in terms of U kg at 3.32. QUALITY CONTROL SECTIONThere are two types of raw material used by VMM i.e. cotton and polyester. The production are cotton yarn and polyester cotton yarn and 100 % polyester yarn. In polyester cotton yam there are blending polyester and cotton. 60, PC,60 PSF. It will be in the form of cone each weighing 1.25 kgs.Raw cotton is in bale form. The following tests are conducted by the quality of bale (spin ability)1) The test to find out the staple length2) Strength test.3) Fiber fineness test4) Maturity test INVENTORY SECTIONThe stores department, only the spare parts of the machines and other daily requirements are maintained. They adopt bin card system for the receipt of materials a receipt voucher is maintained. The procedures for the receipt are:1) For purchasing a particular spare part the concerned department will spend on indent to the store.2) After receiving the indent, the store department will call for the quotation.3) Quotation having the lowest price must be finalized.4) The members of the purchase committee should sign to approve the quotation.5) After that, a purchase order is placed and sent to the supplier.6) Inspection of the materials is done by the indent authority.7) Rejection of goods can be made and it is send back to the parties.But if the materials are accepted a bill will be passed and payment is made after checking for damages, defaults etc. Three copies of receipt voucher are prepared, 2 copies are given to store, and one copy in the account department.For the issue of materials, the department will send an issue slip to the store. After the issue has been made, the closing balance in the bin card should match to the stock in the stores. The goods are classified as:a) Fast movingb) Slow movingc) Non moving

4.2 HR DEPARTMENT

Human resource is the main asset of any organization. Managing this resource is the major function of any company. So a separate department for this purpose is necessary in all organizations. This department is mainly responsible for the personal functions of the company, resulting in timely actions for maintaining smooth industrial relations leading to employee's morale and productivity. The HR department renders all personnel and establishment services to all the workers.The HR manager is in charge of the department. Under him there is a head time keeper and security inspector. A general PF and ESI section is successfully working under the supervision of the section officer.The HR department is working in liaison with other departments. In areas such as recruitment, selection, placement, training, promotion, long term agreements, collective bargaining industrial relations, discipline, administrative mills, quarters, disciplinary action. He is playing the main role in the organization.Objectives of HR Department Establishment of industrial relations, welfare, salaries and wages, recruitment, etc. To provide leadership for management of industrial relations and employee's welfare functions of the company. To provide basis for co-operate strategies and policies for maintenance of industrial peace and for workers motivation. For evolving system of prompt attention and redress of employee's grievance and prevention of the Administering the different committees for employee's participation. Evolve and update practices for checking incoming and outgoing of materials and persons. Implementing the standing orders pertaining in the company.Functions of HR Department Man power planning Recruitment Maintaining Service Records Promotion Up-gradation Performance appraisal Conducting Domestic enquiries Labour welfare Maintaining records-regarding leave Industrial relation

TOTAL NUMBER OF EMPLOYEESWorkersNo. of Employees

Permanent

Gate Badlis

240

125

Mill Staff

14

Officers

1O

Total no. of Women workers

35

Total no. of Trade union

4

RECRUITMENTRecruitment is done through employment exchange and direct recruitment. Direct recruitment is done in fitter. After receiving the list, the management will send memo under certificate of posting to the suitable candidate. The memo will contain date, time, and place of the interview. The selection committee a. consists of General Manager and department heads.SELECTION PROCEDURE After recruitment procedure selection is done by ascertaining the qualification of the candidates with job requirement. The selection here is conducted on the basis of: 1) Test 2) Interview3) Medical test4) AppointmentINDUCTIONAfter placement, the employee is given an induction by which he or she is introduced to the workers, supervisor and exposed to process of production pattern, discipline, standing orders etc of the mills. Mill does not have a systematic implementation of induction program. The personnel manager gives necessary instructions and guidelines regarding the work. After this the newly appointed persons are guided by the head of the section.TIME OFFICEThis is the only administrative section functioning for 24 hours continuously over three shifts. The Time Keeper, after collecting attendance cards of the workers, assess the shortage of labours and lot & overtime, preference is given to permanent workers then to badlis and apprentices. The senior Assistant calculates the number of dates worked their wages is a very complicated procedure if it done manually. Personnel department controls another department called time office department. This department maintains the entering and living time of workers. As said earlier the mill is now working under 3 shifts, 24x7 and thus it is a tedious work maintaining the record of around 393 workers. There for the time office department is having a strenuous job of keeping and maintaining all the relevant records of hours of work of each individual.All the workers are provided with attendance card. This would be given at the time of joining. The color of each card varies with shift and department. The worker has to give his bin card to time officer before starting the shift. The worker will get back a card when he leaves the factory. Head time keeper is in charge of time office. The time keeper after collecting the bin card of the workers, calculate the shortage of laborers and allot over time. There are senior assistants and clerks to help the head time keeper.

FUNCTIONS OF TIME KEEPERThe head time keeper has to collect the attendance and other details for calculating monthly wages yearly bonus and other allowances and deductions. He also calculates the terminal benefits such as gratuity, leave salary to be paid, salary, etc to workers on retirement. The time officer maintains certain records including.PROBATIONAfter placement the employees are given certain period of probation. The probation period is three months for workers and one year for general staff. Only after the successful completion of probation, the employees are made permanent. If the performance is not enough, the probation will be extended again. If the employees satisfactorily complete probation, he will be confirmed in that particular post.TRAINING AND DEVELOPMENTTraining and Development becomes important as far s the growth of the company is concerned. As the mill does not have a separate training department, this function is performed by HR and Product Departments.Training needs are assessed by consulting with various departments which need trained labour report into HR Department and makes necessary arrangements for training program.METHODS OF TRAININGThe workers arc given only on the job training by SITRA. The various other training programs have been given to managerial staffs through by different agencies.

PROMOTION AND TRANSFERThe Mill had followed the SITRA standard of promotion of employees which is specified in the Memorandum of settlement. The matters related to the service conditions of the workmen of the textile industry in Kerala as a whole was taken up by the Industrial Relation Committee (IRC) for textiles, constituted by the Government of Kerala and a general Industry wide settlement between employers and workmen represented by the union of various textile mills in Kerala.As provided in the IRC Settlement dated 01-12-1994, Unit level discussions were held at the Mill and after prolonged discussion, a final agreement was reached. As per the settlement, the principle to be followed in case of promotion is Merit- Cum-Seniority. The promotion of management staff is done at corporate level. It is the Supervision immediate to the worker who certifies that a worker is eligible for promotion.The workmen becoming surplus in any category on account of implementation of settlement shall be transferred from one category to another category or department. While doing so the person shall be treated as the junior-most workman in that category.PROMOTIONIf two or more workmen have the same seniority in their designated category of service, then the seniority should be determined by total service. If the total service in the mill also happens to be the same, for the competing workmen, then priority of place in the Master Rolls of the designated category should be determining pattern. In future, worker who decline to proceed on promotion to higher post, should do so in writing. Where a workman fails to give in writing, the management shall notify surrendered and the that he will not be eligible for promotion in future for ever.

TRANSFERThe management reserves the right to transfer the employees from one shift to another according to emergencies of work at its complete discretion. Inter departmental Transfer is done to both workers and clerical staff as per changes in count pattern , product mix, brake down of machines, idling of machines in sU order to adjust surplus labours. Any person in any of the mills which comes under the Bangalore subsidiary wants to join in any of its other mills must give an application. If he agrees with the terms and conditions of that mill, he is considered as the junior most of that mill. For the unit staff the Transfer is not acceptable. In normal circumstances, no staff member will be transferred if he has three or less years of service from his due date of retirement.COLLECTIVE BARGAININGThe collective bargaining process is taking place efficiently. The unions are very much conscious (3 about their rights in bargaining with the management. The unions are not able to make the management to accept some of their demands due to the poor financial conditions and strict compliance of the rules and regulations as instructed by the mils HR.The matters which need continuous negotiation to the mills are found to be the settlement of work load, revision of wages and other benefits. The present long term agreement of the mill is based in the recommendation the IRC.WELFARE FACILITIES 1) Statutory welfare measuresThere are welfare measures that are required to be provided under various measures as specified below. Welfare measures under Factories Act are:a) Provident Fund as per PF ActThis scheme is implemented according to the Employee's Provident Fund (EPF) Act. It is a future benefit scheme by which employer along with employees make regular contribution to fund that will acquire to the employees on recruitment or earlier. Under certain condition, all employees in the mill are covered under PF Act. The employees must pay 12% of wages excluding HRA.b) Bonus as per Bonus ActAs per Bonus Act, the bonus is paid every year during Onam seasons. Since the unit is suffering from monitory loss, statutory bonus of 8.33% was paid during the last few years.c) Family Pension SchemeThere is a family pension scheme as per the PF and all the employees of the mill get this after their retirement. This amount is ranging from 1000 to 2000 Rs. Per month.d) Gratuity as per Gratuity ActGratuity is payable to an employee who has rendered continuous services for not less than 5 years, equivalent to 15 clays wages for every completed years of service. In case of death of an employee, his/her dependent will be given the amount of gratuity.e) ESI Scheme as per ESI ActThe main intention behind ESI is to provide the employee with fine medical benefit and treatment through dispensaries and ESI hospitals. All the employee of the mill who is drawing monthly salary of less than Rs. 1500 is covered under the ESI Act. The total contribution of the employer (ESI 4.75% of total wages) and employee (1.5% of total wages) are remitted to ESI corporation every month. An employee has to work for minimum 78 days in an organization for becoming eligible for benefits under the ESI Act.f) Sports and Recreation Qub.This is for the relaxation of the workers. There are annual sports meet conducted in every year. Under this mill there is a small library and reading room which provides various news papers and magazines.

g) Welfare measures as per Factory ActFactory Act 1948 provides the welfare measures for the industrial workers. & h) Contributory PFFor this type of PF, the 12% of salary is compulsory deducted from the worker's salary and the same percentage of amount is deposited by the management also. Presently PF pension is given from percentage of amount is contributed by the management. 12% contribution is made by the management out of which 8.33% is given to pension fund. i) CanteenThe canteen provides the employees with good food at a subsidized rate. The canteen is functioning as contract basis.j) Working ConditionThe working areas of the employees are well maintained with sufficient space foe free movement and working. The work areas are kept free from cotton dust, and have sufficient lighting and ventilation arrangement. Interval is given to all workers in such a way that no employee is required to work for more than 5 hours continuously.VIJAYAMOHINI MILLS EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LTD.NO.T.390 25 PROFILE OF THE SOCIETYName & Address of the society: Vijayamohini mills Employees Co-operativeCredit society Ltd. No.T.390 Thirumala P.OThiruvananthapuramArea of operation: The staff of Vijayamohini mills, Thirumala,ThiruvananthapuramDate of operation : 27-11-1972 Type of society : Credit societyWhether limited or unlimitedLiability : LimitedName of the society : Employees co-operative credit societyBYLAWS OF THE SOCIETY1. Name, Address, Area of operationThe name of the society is Vijayamohini mills Employees Co-operative Credit society Ltd.No.T.390. This society is registered according to The Kerala Co-operative Society Act of 1969 under section 21.The area of operation of this society is vested with Thiruvananthapuram and the benefit of operation only leads to the staff of Vijayamohini mills, Thirumala, Thiruvananthapuram.2. Objectivesa. A fund should be created either from the members or other by the means of shares deposits etc.b. Provide loans to members.c.To execute activities allowed by the Registrar for the benefit of the members.d. To start MDS and so on.3. Share CapitalThe share capital of this society is fixed with 200000. It includes Rs. 100000 by issuing 4000 'A' class shares at Rs.25 each. Rs.50000 from 5000 'C' class shares at Rs.10 each. Rs.500000 by the way of issuing 500 'B' class shares at Rs.100 each.4. Membership a. The permanent staff of this institution who is continuing for 5 years of service can take 'A' class membership. 'B' class share can issue by the State Government and Vijayamohini mills. A staff who is permanent but not completed 5 years of service can take 'C' class membership.b. A member should take at least one share but more than 100 shares can't be kept in possession. 3 5. Liability of the membersThe liability of a member is limited to the shares which are taken.6. Transfer of sharesA member can transfer his share to another member on certain conditions. The transferor and transferee should be signed on same transfer applications. The managing committee has the power to receive or reject the applications.7. Withdrawal of sharesa. A member can't withdraw his shares within three years from which he takes the membership. b. He should not have any liabilities to the society when the shares are withdrawn.8. Dismissal of membership When a member deliberately deceives the society, then the general body can terminate his membership. But in general body meeting 2/3 majority should need for the dismissal.9. DepositsThis society has three types of deposits 1. Fixed Deposit2. Saving Deposit3. Thrift Deposit

10. Maximum loan limitThe total loan amount of the society shall not exceed 10 times of the share capital with reserve fund amount.11. ManagementThe administrative powers of the society vested with the managing committee. Under which, 6 members from 'A' class members a nominee by the approval of TVM Deputy Registrar of Co-operative society. Out of these members a president and vice-president should be elected.12. Duration of managing committeea. The managing committee members are elected from the general body for 3 yearsb. The same committee can continue between the existences of new committee on the approval of the Registrar.13. Managing committee meetingsManaging committee should convene at least once in a month, but if it needs can meet many times.a. The power of conducting managing committee meeting is entrusted to the Secretary by the approval of the President.b. Minimum 4 members should have the meeting.c. Decision is taken on the basis of majority. If voting members of two sides have the same then the President has the power to entertain crucial vote.

WAGE AND ADMINISTRATIONThe personal department effects prompts and corrects payment of wages /salary every month. The workers are paid their wages on the seventh of every month while the mill staff and NTC are paid their salary on the thirty of every month.WAGE STRUCTURE In addition to the basic wages an employee's earnings includes increment, DA, HRA, LTA etc and other allowance that may vary individually. The basic salary provided by the Vijaya Mohini Mill to the workers is given below, which is likely to be revised in the coming months. Apart from this, they get Dearness Allowance on the basis of Cost of Living Index submitted by the Kerala Economics and Statistics Department, which enhances their salary by a 7000-8500 Rs/month.MIXING1989

BLOWROOM1973

JOBBER CUM FITTER2063

ASSISTANT FITTER2042

SPINNING FITTER2063

DOFING BOYS1980

PACKER1986

CHARGE MAN2053

DOFFING JOBBER2050

SPECIAL ALLOWACESThey provide special allowances of Rs 30 to the workers who work above 20 days per month.HOUSE RENT ALLOWANCESA total of Rs 488 per month is paid as HRA to all the permanent and badly workers HRA is linked to 26 days working in each month.For computation of 26 days, earned leave days as per the Factories Act, national and festival holidays per Kerala Industrial Establishment Act and days of lay off are treated as days worked.The workers who are occupying the mill quarters are not eligible for any HRA. LEAVE TRAVEL CONCESSION (LTC)The worker drawing occupational wages are eligible for NTC at 2 Rs per day worked. DEDUCTIONS Deductions towards PF and ESI are common to all workers. A minimum of 12 % of total earnings excluding HRA and LTC is deducted to the PF account and 1.75 % of the total earnings are deducted towards ESI scheme.VARIABLE DEDUCTIONThese include deductions towards ESI, LIC policies, Union dues, Recreation club, EWF, SWF, Festival advances. Those employees who had taken membership in these are deducted policy amount from their salaries on installments basis.

CALCULATION OF NET PAYThe total deductions will be subtracted from the gross earnings and it will give the Net pay or home netpay = (basic+increment+DA+HRA+LTC+otherearnings)-(PF+ESI+other deductions).A worker should have worked 26 days in a month to claim his whole monthly salary. For days not worked, salary will be reduced accordingly. Basic, DA, HRA and CTC are taken into account for reduction in salary. The cashier in the account section handles the pay records of the staff.NTC STAFF ORGANIZATIONThe managerial and supervisory staff of the mill are recruited and managed by the NTC Ltd. At present there are 10 officers and 14 Clerical Staff.Only after getting the permission from the head office of NTC the mill can purchase anything that is they follow a centralized purchasing system. The raw material is provided only after checking the quality. The cotton purchased from Gujarat at Reliance Industries Ltd.SALES The sale of yarn is done by the mill as prescribed by the NTC Ltd. The yarn is marketed through the depots of NTC. The demand for yarn is ascertained through these depots. Sales are also centralized. Fixed percentage of sales commission is provided to agents appointed from the head office.There is no credit sale The market for cotton textile is affected by seasonal fluctuation. Only after reaching the goods in NTC they will fix the price.

SALES POLICYThe success and failure of business depends upon its various sales policies for the selling operation. The market division gives information regarding the design of various policies. Now NTC has no policy.SALES PROMOTIONSuccessful marketing depends on having the right product at the right time at the right place of the producer. Since yarn is a consumer product for making clothes, the effective tool for the sales promotion is quality testing by experts. The marketing activities can be made more effective or efficient by designing the sales promotion. In V.M.M there is a quality control department for testing qualities. The NTC mills objectives is to produce quality goods.SALES FORECASTINGIn a competitive market there is fluctuation in sales price therefore proper sales forecasting is not possible. The mill is having plans of expanding its capacity but it is handicapped due to non availability of funds. There are two types of societies in this mill. Credit Society for getting loans and Consumer Society for supplying provisions. Since the demand for yarn is fluctuating in market there are fluctuations in the sales prices. The mill has plans for expanding its capacity bid it is handicapped due to non availability of funds. There apprentice training is compulsorily under the Labour Act.INCENTIVESOfficers and supervisory staff members in Appendix 1 who work beyond the normal hours of work during strike period will be provided incentives.

4.3 MARKETING DEPARTMENTMarketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with customers that result in the value for both the customer and the marketer. The marketing function of an organization aims to promote its product among wholesalers through substantial sales order. Yarn, which is produced by the mill, is sold through whole sales. Marketing is considered as one of the basic need of organization. It is the process of planning and executing the conception, pricing, promotion and distribution of goods and organizational objectives. Marketing is done through Southern Regional at Coimbatore.

CUSTOMERSYarn which is produced by Vijaya Mohini Mill is sold through department keepers appointed by NTC.PROMOTIONAL AND DISTRIBUTION ACTIVITIESSales are done by the members in the NTC Ltd SRO Coimbatore which is the head office. Weekly once they will conduct a meeting about the price and stock in each mill. According to the market satisfaction they will decide the price. The product is sold to the agencies according to the order. In the meeting they will decide the distribution of the product.And the head office a confirmation letter will be sent to the mill about the distribution of product to several agencies. From, the mill the product is distributed according to the order.UNION AND MANAGEMENT RELATIONSHIPThe union and management is good relationship. The most problems are the work load. Conferences field to maintain a good relationship. The union leaders are included in the management committee which was formed in 1986. The chairman of the committee is the General Manager. The union leaders will get wages and attendance of the conference day. If it is an off day they will get overtime wages.

PURCHASEOnly after getting the permission from the head office of NTC the mill can purchase anything that is they follow a centralized purchasing system. The raw material is provided only after checking the quality. The cotton purchased from Gujarat at Reliance Industries Ltd.

4.4 STATISTICAL QUALITY CONTROL (SQC) DEPARTMENT

There is a statistical quality control department to check the quality of the yam. The quality is supervised from the blow room to the winding section.Quality policy of the company reads:-"To manufacture and supply yarn in conformity with agreed specifications maintaining delivery schedule to the full satisfaction to its customers.

The company aims at continual improvement of quality of yam. The measures adopted are:- By creating awareness among all the employees about the importance of quality measurement system. By creating most congenial and healthy working environment. The quality department supervises the quality from the blow room to the winding section. The quality department in order to maintain the quality of cotton which is in bale form conducts certain tests. The test to find out sample length Strength test Fiber fitness test. Quality tests are earned out in the mills some are send to Regional lab, Coimbatore

4.5 ENGINEERING DEPARTMENT

Engineering department is one of the major departments in Vijayamohini Mill. The Assistant, Engineer is in charge of this section. The engineering department consists of powerhouse and workshop. The workshop undertakes all the maintenance functions and installation of machinery. The breakdown of the, machines is prevented to an extent through preventive maintains.In this section there are 11 workers,4 in the general shift and 6 in each of the three shifts. Engineering department is responsible for the installation of all factory structures, plants, equipments and their proper maintenance and up keep as well as optimum production. The Electrical Section includes a generator. The Electrical section looks after the power requirement of the mill. Electricity is obtained from KSEB. There is a separate transformer of good capacity inside the mill for this purpose. The power supply of the entire mill is regulated by this department. Also a stand by generating set of capacity is installed and maintained by department.Objectives of Engineering Department Planning, arranging and initiating preventive measures like maintenance repair of equipments. To advice the management to take decisions on all engineering matters. Preparation of plants. Preserve the working life of plants. To safeguard investments. Maintaining safety and efficient working condition. To achieve minimum break downs. Inspection of jobs at successive stages of production. Ensure normal productivity. Ensure availability of machine, building etc.The various sections of Engineering department in Vijayamohini Mill are: Power house WorkshopPower house SectionOne of the major sections of the Engineering department is the Power house section. This section undertakes the activity of maintaining the power demand of the factory. The main function of this department is the electrical maintenance of plant and organization.Workshop SectionAnother major section of Engineering department is the workshop section which undertakes workshop and plant technical services of the company. The main functions are Repair and maintenance of mechanical devices and equipments. Maintenance of parts of machine.

4.6 STORE DEPARTMENT

STORE KEEPERSENIOR ASSISTANTJUNIOR ASSISTANT

The storekeeper is in charge of the stores department. Under him there is senior assistant and Junior Assistant. The store makes use of the bin card system. A code number is provided for each material. The records are maintained on weighted average method. The main function of this section is to issue the materials as per the issue voucher. The issue is also recorded in Bin Card and in computer.

Functions of Stores Department All the store materials coming to the stores as per the different purchase orders made by the purchase section are received. The quantity and quality are checked and a receipt voucher is prepared. The invoice declaration and gate pass is prepared. The materials produced daily are taken into stock and maintained in the register. The receipt vouchers are checked.The stores department has to: Arrange inspection by user department or stores officials. Items that are accepted are moved to the appropriate location or bin and stored there. Items that are rejected are kept separately in the area marked for rejected items. Enter receipt details. Issue of materials.Procedures followed by Stores Department Verify whether the issue requisitions are properly authorized. Enter issue details. Issue the materials to the concerned persons. Send the original copy of Issue requisition to Accounts.Payments Enter receipt and inspection details of all receipts in the tally. Bills against work order certify the bills and send to commercial department.

4.7ACCOUNTS/FINANCE DEPARTMENT

No company can work without a finance department since it is the root cause of existence of a company. The head of the accounts department is the Finance Manager. Under him there is an Accountant, a senior Assistant (sales) and a senior Assistant (cotton) to assist the Accountant there is a Cashier, a senior Assistant and an Assistant. Finance department is concerned with planning, controlling and utilizing the firm's financial resources in a profitable manner. Proper books and records such as sales and cost records etc are maintained in this department. The funds flowing in and out of the firm should be constantly monitored to assure that they are safeguard and properly utilized.

Functions of Finance Department Preparation of 1 corporate plans and budgets. Financial planning cost control and ensuring uniform and correct observance of financial disciplines of the company. Monitoring the progress of budget achievements. Providing accounting service to all levels ensuring updating of systems procedures for the same. Advising management on funds utilization and its implementation. Vetting of all investment proposals, certain of new assets, new posts, etc from the point of financial feasibility. Auditing of the accounts manually. Collecting all sums due to the company in time as per sales, orders, etc. To make timely payments to creditors, suppliers, contractors, employees, Government Statutory bodies, service providers, etc. Timely dispersal of salary, wages, perks to employees as per the agreements, etc. To prepare MIS as required by management. To complete all budget works. To manage cash properly to maintain proper liquidity. To assist all departments in providing financial administration of all transactions. To make proper entries in the books of accounts and extract reports like Trial Balance, Profit and Loss Account, Balance Sheet on a time bound basis.DISPATCHThis section of the accounts department maintains the communication system both inward and outward. The correspondence coming into the mill is entered into the Inward register. Then the departments of which they are meant are identified. The Outward register. Besides correspondence, the Senior Assistant (Dispatch) maintains telephone communication. The outward calls are marked in a particular register which is meant for that purpose.COST ACCOUNTING PRACTICEThis section will come under Finance Manager (costing).The mill adapting Uniform accounting system as directed the head office of NTC. There is an integrated account and the data are collected for cost C 5 accounting purpose from the financial books.