GENERAL INFORMATION

Introduction:
The company was established in 1981 and was known as LD TEXTILE
INDUSTRIES LTD. In 1981 the company came into the production and it was
handling its operation. The Director of the company was JOGENDARNATH
MEHRA.
In the beginning the company was started with the strong network but slowly
and gradually there was the downfall of the company. Due to this the company
was included into the sick industry. This industry was then restarted by
RAGHAV INDUSTRIES LTD, On lease to run its production in
NOVEMBER 2002 and now its totally handling was done under the
RAGHAV INDUSTRIES LTD.
RAGHAV INDUSTRIES LTD has its different branches at different places in
India. Some of them are located as below:
Mumbai

Erode

Bangalore

Pond cherry

Chennai

Kolkata

Ankleshwar

Surat

Delhi

Gorakhpur

Amritsar

Ludhina

Salem

Tripura

Namkal

Kannad

 Shiv gangai

Anthiyur

The above are all the branches of the RAGHAV INDUSTRIES. These
branches make the product and get their sales through sales office. There are
many sales office and they do sales with the help of the Marketing. Some of
the sales offices are located at Tamilnadu, Coimbatore, Ludhina, Delhi,
Mumbai, Tripura, and Surat. The company makes its production at
Ankleshewar and sales at Surat. Its sales office is located at Mumbai.

Registered Office:
RAGHAV INDUSTRIES LTD.
Sr. no. 11, Poes Road,
Teynampet
Chennai-Tamilnadu 60018

Works:
RAGHAV INDUSTRIES LTD
Plot No.:- 2802- 2803
G.I.D.C.,
Ankleshwar 393 002
Gujarat state.

Board of Directors:
Mr. Rajendrakumar kanodia

Managing Director.

Mr. Raghav Kanodia

Director.

Mr. Nareshkumar Roteria

Director.

Mr. N. Nachimuthu

Director.

Auditors:
M/S D.K. JAIN & CO.
Charted Accountants
Erode.

Bankers:
Federal Bank of India.

Size of the Unit:

Large Scale Unit

Form of the Unit:

Public Limited Company

Mission:
Constantly growing big.
We foresee our future.
Reflected with poignant quality standards.
To establish a concerete slunce in the global polyester and
cotton yarn industry.

Vision:
Through inheriting trust, establishing bonds and fostering
relationships, we envision a bright tomorrow where we stand as a
lobally acclaimed company, synonymous with quality and
commitment.
We forecast a proper our area where our clientele list is
pillared by eminent quality and services.

Quality Policy:

All employees working towards achieving customer

delight by providing technical support to customers and cost reduction
through continuous improvement.
Continuous improvement suggestion scheme and based on root cause
elimination and stitch time practices and major vbreak through b reengineering.
Commitment to maintain safe and clean work environment.

PRODUCTION DEPARTMENT
Introduction:
Production is pre-requisites for running any company. The things
produced or services are rendered as product. Converting raw material into
finished product through various process, That process is known as
production. The product mix makes any organization into existence and keeps
it running for achieving its basic established objectives, as per the norms. of
the organization.
Production means generation of utility from goods. It covers all the
activities of procurement, allocation, and utilization of resources such as
labour energy, raw materials, equipments, machines etc.
It is a basic department in the organization. It is necessary from the
view point of sales. How much to produce and with what best quality it should
produce. It is very much important to have to get the products finally produce
and to check the productive capacity of the machine and men. It is the
department through which if not there, than organization cannot stand.

Activities of Production Department:

1. To prepare the production plan and the micro plan.

2. To produce goods according to the SOPs.
3. To review the production and micro plan periodically.
4. To co-ordinate with the different departments for the timely
and adequate completion of production processed.

PRODUCTION DEPARTMENT CHART/STRUCTURE

Production Department

Mixing
Department

Prepatery
Department

Ring
Frame

Finishing
Departme
nt

Packing
Incharge

Mixing
In charge

Prepatery
Incharge

Shift
Incharge

Finishing
Incharge

Checker

Supervisor

Spinning
Master

Jobber

Finishing
Master

Supervisor

Helper

Jobber

Checker

Worker

Worker

Jobber

Checker

Worker

Product line information:

The company produces Product-Mix product. In the product
mix product they made spun yarn corn. Every company needs raw
materials to make a product. this company makes a spun yarn corn that
uses polister, viscose fabric and cotton fabrics.
Raw Material Chart
RAW MATERIAL

Polyster

Blist

Tvl

Polyster

Cotton

Dall

Bright

B.B.G.

Dall

Company use raw material as polyster staple fabric, viscose staple fabric
and cotton fabric to make a yarn. The mixing of polyster staple fabric and
viscose staple fabric are done in the various proportions according to the
requirement.

Grusilk

List of raw materials of Reliance Industries:

Polyster

Hazira

Surat

Patal Ganga

Maharashtra

Barabundi

U.P.

Vashiyapur

Punjab

Indorama

Nagpur

Viscose

Nagda

M.P.

10

Kharas

Kosamba(Ankles war)

Harihar

Karnataka

List of Machinery:

Process

Machinery Name

Manufactured By

1. Blow Room

Trutzsctiler

Trumac India

2. Carding

LR-LC 300(Mewada)

Perfect EngineeringCorp

3. Draw Frame

RSB 851

Laxmi Return

4. Speed Frame

LF 1400A

Shri venkateshwara

5. Ring Frame

Texmaco HI-SPIN-200 Belgharia works

6. Winding Machine Co-Ps mettler

Product name:SPUN YARN

11

Kinariwala

Single Ply Yarn

Two Ply yarn

* 100% spun single or two polyster yarn.

2/30

Single or Two Ply Yarn

2/25

Single or Two Ply Yarn

2/50

Single or Two Ply Yarn

2/40

Single or Two Ply Yarn

2/60

Single or Two Ply Yarn

2/10

Single or Two Ply Yarn

-* Mixing Spun single or Two Polyster & Vision Yarn

In the mixing Spun Yarn, they use fabric polyster & viscose in mixing in
the following proportional quantities:
i.e.

65/35

P/V

60/40

P/V

80/20

P/V

They make mixing spun yarn corn according to the requirement of the market
in the following proportion:
i.e.:2/30

Single or Two Ply Yarn

2/15

Single or Two Ply Yarn

2/40

Single or Two Ply Yarn

2/60

Single or Two Ply Yarn

2/50

Single or Two Ply Yarn

They use color in single or two ply yarn for the requirement of the market:
i.e.:-

Light Pink

Light Blue

Light Green

Light Violate
12

Light Yellow

Lemon

Orange

T-Dark

T-Blue

Manufacturing Process:-

The Flowchart of the manufacturing process is as follows:

MIXING & BLENDING

BLOEROOM
(LAP FORMATION)
CARDING
(TO MAKE SILVER)
(LAP FORMATION)
DRAWING
(TO MAKE SPINNABLE SILVER)
SIMPLEX
(OR INTER) (FOR DRAFTING)
RING FRAME(SPINNING) (FOR
FURTHER DRAFTING)

ASSEMBLY WINDING
( FOR DOUBLE YARN)
DOUBLING
(FOR DOUBLE YARN)
CONE WINDING

13

PACKING

Description of Process:
1. MIXING:
In this section, raw materials like polyster & viscose mix with require
blend and transfer to another section for process.

2. BLOW ROOM:
In this section blended material formed into lap with require weight
demand and transfer to next section.

14

3. CARDING
Lap which is transfer from blow room is converted into sliver
and then forward to next section
.

4. DRAW FRAME
In this section 8 Numbers of sliver pass through drafting one for
parrallisation and uniformation and turn into one sliver.

15

5. SIMPLEX
Sliver coming from draw frame is drafting & twisting here as
per count requirement and formed in to roving & shift for
further process.

5. RING FRAME

16

Roving coming from simplex is finally drafting here 7& convert into
yarn as per count requirement & wind up on plastic bobbins. Then
shifted to next department.

7. WINDING

In this section yarn is wind up on cones & sends it to further

department.
- For single pack materials yarn wind up on paper cones & send
it for packing
- For double yarn, wind up on plastic cones.

A. chees winding:

17

In this section , wind up two or more ply yarn on plastic cheese &
shift for next process.

8. Ring Doubling:

In this section two yarn mix up with necessary twist.

7. PACKING

In this section ,final product coming from winding, remain sometimes

for moisture gain & then packed into plastic bag for delivery.

18

HUMAN RESOURCE DEPARTMENT

INTRODUCTION
According to professor E.F.L. Breach personnel management is the part
of the Management which is primarily concerned with the human contribution
to an Organization.
Personnel management is most crucial job as managing people is the best
and the essence of being a manager.
Personnel Department is considered with the man at work and their
relationship with managers, So as to achieve the goal of the organization with
maximum effort and contribution of the man power with least cost and time.
19

It is very much important for the development of human element and

achieving the organizational goals.

OBJECTIVES OF HRM
We can not deny the important of the Human Resource Department in the
organization, as the employees hold the organization.

PERSONNEL DEPARTMENT CHART/STRUCTRE

PERSONNEL MANAGER

TRAINING OFFICER

TIME OFFICE
INCHARGE

HEAD TIME
KEEPER

RECRUITMENT
OFFICER
20

TIME KEEPER

LABOUR OFFICER

SECURITY OFFICER

FUNCTIONAL AREAS OF HRM

In the Raghav Industries LTD the functional areas of HRM are
Recruitment, Selection, Training and Development, Promotion etc.

PERSONNEL POLICY
Here there is no personnel policy is made for the organization. But the
main purpose of the personnel department is to provide service to the
production department.

ORGANISATION CHART OF THE DEPARTMENT

21

President (Operation)

Manager

Deputy Manager

Assistant (Weaving Unit)

Assistant (Processing Unit)

House Keeping Manager

For the Raghav Industries Ltd. There are many objectives of having special
and separate HR Department in the organization and it can be laid down as
follows :
1. The primary and major objective of HRM is to ensure the
availability of a component and willing work force for each and
every specific task to the organization
2. To satisfy the employee welfare to give the perfect result in a given
time.
3. To maintain a high morale and better human relationship inside the
organization.
4. To utilize the man power effectively and efficiently.
5. To achieve the target or goals with minimum effort and with
maximum gains.

22

HUMAN RESOURCE PLANNING

The main reason for which the company plans for HRM are as follows:
1. To forecast skill needs for the future.
2. To determine recruitment levels.
3. To determine a optimum training levels.
4. To provide a basis for management programs.
5. To estimate the cost of the manpower in new project.
6. To estimate the cost of overheads and value of service functions.

PROCESS OF HRM
The process of HRM that the company follows is given below:
1. By performance appraisal i.e. first of all they remove totally non
performed performer of the company.
2. Then recruit by setting performance appraisal.
3. Then they see their labour turnover.
4. After it they see their present employee strength.
5. After it they also view the environmental factor e.g. changes in
govt policy.
6. After it before selecting the supply source, they see there budget
, their financial position and then approve the budget.
7. Finally they select the supply source.
23

8. Then induction of employees is proceed.

9. Lastly, they review the HRM plan.

LABOUR TURNOVER
In the company there is at least 15% of labor turnover.

ABSENTISM
There is at least 2% of absenteeism in the company.
Various reasons for absenteeism are as follows:
1. Due to sickness
2. Due to any personal problem.
3. Due to any other valid reason.

FUNCTIONAL AREAS OF HRM

1. Recruitment.
2. Selection.
3. Training.
4. Development.
5. Transfer.
6. Promotion.

RECRUITMENT POLICY
In the company, they see manpower recruitment based on annually
reviewed CEOS annual financial requirement.

24

There is additional requirement if any justified and approved by joint

management for replacement vacancies (i.e. due to retirement,
resignation, transfer, promotion etc.).

METHOD OF RECRUITMENT &SELECTION

The company uses the following methods of recruitment;
1. Direct Method of Recruitment.
2. In Direct Method f Recruitment.
3. Third Party
Company used to give advertisements i.e., through News paper, TV,
Radio, Journals & Technical magazines which are included under the
head of indirect method.
Company also used to recruit the employees through placement
organization, employment exchange agencies, professional association ,
which are included under the Third Party.

PROCEDURE FOR RECRUITMENT AND SELECTION

The very long and systematic procedure for recruitment and selection
that the company follows are mentioned below in detail.
Based on approved vacancies, personal department initiate recruitment
action.
Applications are invited from right candidate through advertisement,
placement organization, employment exchange etc.
Applications are creamed with the help of head of department.
Then after short listed candidates are called for interview.
All the candidates are required to fill up the application form.
25

 Interview panel is formed for different level of recruitment.

Panel has representatives from concerned and personnel department.
And for executives & manager PMS signed by Jt. M.D & C.M.D.
The new employee is required to submit all the relevant document like
his relieving letter for his previous salary, qualification and working
experience etc.
And finally after the employee who has been indicated in the company
has to start his work. The new file is opened for the employee where all
his records are filled and these files are maintained by personnel
department.

TRAINING AND DEVELOPMENT

Every company has its own training and development programmes in
different ways. The main objective of having training and development
program is to increase the efficiency of their employees and its workers
and to maintain a satisfied and satisfactory work force.
The other objectives of training and development are as follows:
To have greater effectiveness and accomplishment of the
employees personal objectives.
To have effective executive leadership.
To have good organizational morals.
26

 To make the organization having attributes of stability,

flexibility and capacity for growth.

POLICY OF TRAINING
Generally the company gives the training by dividing the
employees i.e., present employees and new employees.
1.) present Employee :-

They give training on ERP i.e., Enterprise Resource Planning. It means that
what ever day to day or on time to time basis they have to install the
information related to production, finance, recruitment , etc. so that what ever
they are doing in the unit, the Bombay office can be known to the CMD &
Joint M.D. Every day to day sales and other information are available upto 24
hours into the computer.
2.) New Employees :It is the methods of training and also it is known as policy of training. It is the
method used for training of workers, employees, and supervisors.
3.) Executive And Employees :They are having training through conducting conferences, lectures,
presentations, group discussions, other methods etc.

27

PROMOTION,TRANSFER, AND DEMOTION

Objectives of Promotion:
To retain Excellency in the company.
To create satisfaction level in the employees.
For carrier growth on the basis of merit.
Promotion Policy:
Promotion is based only against the vacant post in the approved
organization chart.
Organization is updated and approved only by C.M.D.
Any promotion must be based on the merit/excellence and skill metrix.

Promotion Criteria:
For promotion criteria the following parameters is to be taken into
consideration.
1.) Potential Fields.
2.) Performance Appraisal

1.) Potential Fields :

Relevant knowledge for the post.
28

 Offering towards the self development.

Contribution on continuous improvement.
Personality and behavior.
Leadership skill.
Decision making.
Problem solving.
Communication skill.
Waste consciousness / elimination.
2.) Performance Appraisal :
Performance appraisal is provided to the employees on the basis of there
performance in the work.

Reasons for Transfer:

Transfer is very essential for the company; various reasons for transfer
are given as follows:
To meet the requests of the employees.
To provide and create opportunities for employees.
To train the employees for better advancement and promotion.
To place the employee into other department where he is best suitable.

29

PERFORMANCE APPRAISAL
The objective behind doing performance appraisal by the company is as
follows:
Helps promotion.
Aid to training and development program.
Development of interpersonal relationship.
In wages /salaries administration.
To determine the strength and weakness of employees for developing
them.
To identify potentials for future assessment.
Employees development.
Employees effectiveness.

Performance appraisal is a systematic and periodic evaluation of the

individual with respect of his performance on the job and his potential for
development.

Principles of Performance Appraisal

Any activity or task measured by some condition of cost, time and
quality indices.
Measurement system provides productivity.
Professional work is measured in group.

When Performance Appraisal is done.

30

In Raghav Industries Ltd, generally performance appraisal is done by

the top management of the employees and supervisors. It is done only
when the performance of any employee is to be appraised.

WAGES AND SALARY

Methods of wage and salary
Raghav Industries Ltd gives wage and salary on the basis of Time
Rated System.
Average Salary (Per Month)
Workers

Rs. 6000 /- (Gross)

General

Rs .5000 /-

Executive

Rs .7500 /-

Managerial

Rs .18000 /-

Vice-President

Rs .40000 /-

Incentives For Workers

The main objectives for giving incentives to the employees of the
company are as follows:
To reduce absenteeism.
To reduce late coming.

31

 Those employees who worked for more than six months can only avail
the benefit of incentives. Following incentives are provided to the
employees.
Rs.200 /- for full day presence on all the scheduled working days and
no late coming in the month.
Rs.150 /- for one day leave with pay out of all scheduled working days
of one day late coming in a month.
Rs. 350 /- (During May And October) for all full day presence on all
scheduled working days in a month and no late coming in a month.
Rs. 250 /- (During May And October) for one day leave with pay out of
all scheduled working days or one day late coming in a month.

HEALTH AND SAFETY

The measure related to health and safety that has been taken up by
company are as follows:
Fire extinguishers are kept into the company at many places to save or
prevent from fire.
Face masks are provided to each worker to prevent them from
infactional diseases.
Workers are provided with eye glasses, rubber gloves, helmets, etc.
Benefits and services to Employees and Workers:
The employees are provided with Residential colonies for there
residential purpose.
Employees are provided with recreational facility.
Employees are provided with health facilities like medical.

32

 Employees are provided with pure filtered drinking water facility.

Employees are provided with canteen facility.
Employees are provided with tea two times in a day.
Employees are provided with rest rooms, change rooms, etc.

ACTIVITIES CARRIED OUT TOWARDS

ORGANIZATION
The activities carried out towards organization by Raghav Industries Ltd
are given as follows;

To make a disciplinary action.

To make settlement with workman representative committee.

To maintain good relation with workman representative committee.

Attending court.

FINANCE DEPARTMENT

Introduction

33

Financial management means the art and science of money. It is art of

acquiring financial resources and the science of utilizing funds of business.
Every company has a separate financial department to manage all the
financial resources.
Here in the Raghav Industries Ltd the finance manager practices with the
acquiring and allocating the funds in such a manner that it will give the best
and result that is more than expected.
The financial manager is practicing in the company that is how to allocate
the acquire fund and from where, how and in what quantity. The anticipated
funds is acquired and how
to anticipate the funds by seeing the requirements or financial resources
requirement.
The financial manager in the company practices the following five points.
To, Anticipate the financial needs the manager takes the decision that
how much requirements is there to acquire the funds by seeing cash
budget, profit and loss, assets and liabilities and the uses of funds.
Then he acquires the resources which he has anticipated. It is done by
him by issuing the equity shares and debentures in a proportion that
neither the ownership capital nor the debt capital goes more than
required.
Then the manager allocate the funds in the fixed and current assets
according to the requirements, which he has anticipated the funds.
Then the financial manager analyses the performance of finance i.e.,
he administers and analyses the performance of the allocated funds.

34

 And finally he reports the whole report of the financial resources to the
top management.

Objectives of financial management

There are two main objectives of financial management they are as
follows
1.) Profit Maximization.
2.) Wealth Maximization.
However in Raghav Industries Ltd the goals of financial
management are as follows:
To maximize the value of shares i.e., EPS.
To ensure that the return on investment must be more than that of cost
of capital i.e., ROI, COC.
To ensure financial disciplines.
To give fair return to investors on there investment.
To build up resources for growth or expectation.

Organization chart/Structure of finance department

35

Vice president

Account Manager

Costing Manager

Account Executive

Costing Executive

Costing Clerk

Capitalization & Capital Structure

The Raghav Industry has been capitalized by earning theory. There are two of
capitalization i.e, under capitalization or over capitalization suffered by the
company.
The company is under capitalized because the company is very much effective
in earning the rate on equity shares and debentures. The company at present is
at good and fair position.
The other reason for the under capitalization are as follows:
The high earnings.
The under estimation of capital requirement.
The low cost of capital and high rate of return.
The total value (market value) of the share is higher than book value of
the shares.

Capital Structure
36

Capital structure of any unit consists of owned capital and borrowed funds.
The owned capital consists of share capital and reserve and surpluses, while
the borrowed capital consists of short term debts and long term debts.
In Raghav Industries the unit has total share capital of Rs 695200000/- of
which
1.) Authorised Capital for March 2008
5002000 Equity share at Rs 10/- each.

Rs. 500200000/-

2.) Issued and paid up capital for March 2008.

19500000 Equity share of Rs 10/- each =

Rs. 195000000/---------------------Rs. 695200000/-

3.) Total Reserves & Surplus

Rs. 655500000/-

4.) Secured loan

Rs. 000000000/-

5.) Un secured loan

Total Equity of Raghav Industries Ltd.

37

Rs. 1500000/-

Total Share Capital

Rs.695200000/-

Reserve & Surplus

Rs.655500000/---------------------

Total Equity Capital

Rs. 1350700000/-

Secured Loan

Rs. ---------------

Un Secured Loan

Rs. 15000000/-

Total Debt of Raghav Industries Ltd.

----------------------Total Debt Capital

Debt Equity Ratio =

Rs. 15000000/-

Total Debt.
---------------------Total Equity
Rs. 15000000/--------------------Rs. 1350700000/-

38

Rs. 0.011/-

Leverage
Leverage is a situation where input is not equal to output. If the output is more
than input it is known as favorable leverage situation and if the output is
less than input it is known as un favorable leverage situation
Types of leverage
1. Degree of Operating Leverage (DOL)
2. Degree of Financial Leverage (DFL)
3. Degree of Combined Leverage (DCL)

1. Degree of Operating Leverage (DOL)

DOL =

%Change in EBIT
----------------------%Change in Sales

-129.53
-----------3.39

-38.80

2. Degree of Financial Leverage (DFL)

DFL =

%Change in PBT
---------------------%Change in EBIT

-124.65
39

---------129.53
=

0.96%

3. Degree of Combined Leverage

DCL =

DOL x DFL

129.53 x o.96

124.34

Capital Budgeting
Budget Manual
Management prepares the annual budget of the company manually and
makes annual planning for the production and other policies towards
improvement and growth of the company. Points can be discussed in
the boards of directors meeting .
Budget Period
Budget period is one year i.e., from April to March. Sometimes it
may be for long term upto 3 to 5 years.
Principle budget factor
Pricing policy.
Production and new product introduction or not.
New policy and rules regulation to be applied.

40

Source of Finance(Long Term And Short Term Finance)

1.) Sources : Long Term Finance :
I. Equity Share.
II. Preference Share.
III. Debenture.
Short Term Finance :
I. Loans from Banks and Financial Institution.
II. Commercial papers.
III. Fixed Deposit.
2.) Types :I. Cumulative Preference Shares.
II. Non Cumulative Preference Shares.
III. Redeemable Debentures.
3.) Quantum of funds raised :Quantum of funds raised mainly depends on the requirement of
working capital or cost of new project launched.
4.) Procedure of raising finance :The company also arranges the financial from bank through loan
application. Bank takes security against loan like mortgage of movable
and immovable properties o r promotes guarantee letter.

41

The company also arranges the funds through financial institution like
Federal Bank for a fixed time along with interest charges.

Working Capital Management

42

Function of all department employees

There are three officers in finance department who perform the
following functions in Raghav Industries Ltd.
Officers:They follows his superior instructions and maintains the companys
petty cash I.e., accounts related to daily use like rent, freight, daily
wages, etc. he also checks the various bills.
In all corporate office there are many employees in finance department
like executive finance who looks every matter of finance department
and excise matter of the company .officer who is subordinate to
executive finance and maintains the company
Account like petty cash, ledger, payments towards the partys salary and
wages etc is handled by purchase manager who makes arrangement and
purchasing of raw material and engineering material and check all the
bills.

Account department

43

In any organization finance department is coordinating by the account

department for the accounting work. The accounting department in the
company is mainly concern with accounts and addition.
The Accounts Manager of Raghav Industries Ltd. Is Natwarbhai Prajapati
under whos Coordination all the financial activities are carried out.
The activities which are carried under finance department are as follows:

Wages and salary administration.

Payments management.

Income tax and deduction.

Reimbursement.

Wages and salary

The department manages wages and salary. It is paid to the employees for the
service rendered by them to the company. This salary is based on the
attendance of an employee.
Generally salary is given to managerial staff and wages to workers.

Salary description: Basic Salary.

44

 VDA.
HRA.
EA. (Education Allowance)
Other Allowance,
PLI. (Production Link Incentive)
TA. (Tea Allowance)
Overtime Allowance.

Provident Fund.
Other Deduction.

Payment
The account department also manages payments. The account department
makes payment to the workers in cash n the form of envelop packing while
salary of staff is deposited to their banks accounts. The freight payment is
also made in cash, which is considered as inward while payments for dispatch
i.e. carriage outward is handled in cash.

Income tax
Income tax and its deduction is also concerning to this department. It is
generally deducted from the employees income according companys
standard of taxing income. Company also provides 20% rebate to the
employees. Reimbursement is made in the terms of medical expenses,
convince expenses and LTA. The company pays all the three for once in a
year.

45

Audit Department
Auditing is concerned with checking, inspecting and verifying at the financial
and other statement of the company.
External Audit.
Internal Audit.
The internal and external audit is done by the auditor appointed by the
company. In Raghav Industries Ltd audit is done by CA, MR S.N Parikh
appointed by the company. It is advantageous to external audit as it can have
100% checking of the documents. Its main motive is to improve efficiency
where it takes
The companys board of directors forms an audit committee. The audit
department report submits to audit committee of BOD. It is given after every
three months by preparing an audit report. The respective department
discusses the report. Then the action are taken to vice president of the
company is being sent for the profitability budget and other financial for
expenditure and incomes.
Let is consider purchase department to understand the role of audit.
Demanding quotation from at least three parties
Proper selection of party.
Proper negotiation.
Brand specification.
Terms of payments.

46

Costing of the main Product

Manufacturing.
Raw Material.
Rent.
Manpower charges.
Electricity Charges.
The company includes all the expenses I manufacturing a product in
calculating the cost of the product.

Responsibility Accounting & Responsibility Centers

Administration and sales department.

Direct and Indirect department.

Service department.

Cash Management
Cash management is one of the key areas of working capital management
. it is crucial for the solvency of the firm . Cash is the important and basic
input needed to keep the business running on a continuous basis and is
also the ultimate output expected to be realized by selling the services or
product manufactured by the company.

47

Cash management policy:1.) collection policy

The collection policy of Raghav Industries Ltd is 15 days.
2.) Payment policy
The financial payment policy for payment of Raghav Industries Ltd is
maximum 7 days.

Taxes
There are two types of taxes, which are paid by Raghav Industries Ltd,
they are Direct taxes and Indirect taxes.
Direct Taxes:
Excise duty.
Sales Tax.

Indirect Taxes:
Income Tax.
Service Tax.

48

Position of Mobilization & Employment of Funds(March

2008)

Total liabilities
Total assets

865500000
865500000

Sources of Fund:
Paid up capital
Reserve & Surplus
Secured Loan
Unsecured Loan

195000000
655500000
-------------15000000

Application of Funds:
Net Fixed Asset
Net Current Asset
Investment
Miscellaneous Expenses

805600000
826000000
39600000
-------------

Profitability And dividend Distributions

49

Financial results
(Rs In Crores)
Particulars

March

March

Operating profit
PEDIT
Interest
PBDT
Depreciation
Other written off
Profit before tax
Extra ordinary items
PBT
Tax
Reported Net profit
Total value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax

2007
0.33
0.33
0.03
0.30
0.00
0.00
0.30
0.00
0.30
0.10
0.20
0.06
0.00
0.00
0.00

2008
0.30
0.30
0.16
0.14
0.00
0.00
0.14
-0.03
0.11
0.05
0.09
0.06
0.00
0.00
0.00

Dividend:
In the Raghav Industries Ltd. Due to suffering of losses during 2007
and 2008, the Board has not recommended any dividend.

Management of Fixed Assets

The assets which required a huge amount of capital investment in it and
which are not liquidated in a short period than such assets are known as
Fixed assets.
Total Fixed Assets :
50

Turnover Ratio For March 2008

Sales
----------------------Total Fixed Assets

274300000
-----------------477400000

0.57 : 1

Net Sales

Net Fixed Assets :

Turnover Ratio For the year March 2008

-----------------Net Assets
=

274300000
----------------865600000

0.31 : 1

Income and Expenses of Company

INCOME (For year ending on march)

Sales Turnover

51

(Rupees In Crores)
2004

2005 2006 2007 2008

21.40

30.19 9.76 43.34 27.43

Excise Duty

0.00 0.00 0.00 0.00 0.00

Net Sales

21.40

30.19 9.76 43.34 27.43

Other

0.00

-0.12 0.00 0.00 0.00

Stock Adjustment

0.52 -30.12 0.00 0.00 0.00

Total Income

21.92

EXPINDITURE (For year ending on march)

-0.05 9.76 43.34 27.43

(Rupees In Crores)

2004

2005 2006 2007 2008

21.64

0.00 0.65 42.96 27.07

Power & fuel cost

0.00

0.00 0.00 0.00 0.00

Employee cost

0.00

0.01 0.01 0.00 0.02

Other Manufacturing Expenses

0.00

0.00 0.00 0.00 0.00

Selling and Admin Expenses

0.04

0.03 0.02 0.04 0.03

Miscellaneous Expenses

0.01

0.01 0.01 0.01 0.01

21.69

0.05 9.69 43.01 27.13

21.69

0.05 9.69 43.01 27.13

Raw material

Pre operative Expenses(capitalized)

Total Expenses

Profit and Loss Account of Company

Profit and Loss Account of Raghav Industries Ltd. For the year ending on
March ..
Particulars

2004

52

2005 2006 2007 2008

Operating Profit

0.23

0.02 0.07 0.33 0.30

PBDIT

0.23

-0.10 0.07 0.33 0.30

Interest

0.01

0.00 0.00 0.03 0.16

PBDT

0.22

-0.10 0.07 0.30 0.14

Depreciation

0.14

0.00 0.00 0.00 0.00.

Other written off

0.07

0.00 0.00 0.00 0.00

Extra ordinary items

0.00

-0.06 0.00 0.00 -0.03

PBT

0.01

-0.16 0.07 0.30 0.11

Tax.

0.00

0.01 0.02 0.10 0.05

Reported Net Profit

0.02

-0.11 0.04 0.20 0.09

Total value addition

0.04

0.05 0.04 0.06 0.06

Preference Dividend

0.00

0.00 0.00 0.00 0.00

Equity Dividend

0.00

0.00 0.00 0.00 0.00

Corporate Dividend Tax

0.00

0.00 0.00 0.00 0.00

Per Shares Data (Annualized)

Shares in issue (in Lakhs)

195.02

195.02

195.02

Earning Per Shares (In Rupees)

0.01

-0.06

0.02

0.10

0.05

Equity Dividend (In %)

0.00

0.00

0.00

0.00

0.00

53

195.02 195.02

Book Value.(In Rupees)

43.55

43.46

43.48

Balance sheet of a Company

Balance sheet as on March..

54

43.58

43.67

2004

2005

2006

2007

2008

Total share capital

19.50

19.50

19.50 19.50

19.50

Equity Share Capital

19.50

19.50

19.50 19.50

19.50

Share Application Fund

0.00

0.00

0.00

0.00

0.00

Preference Share Capital

0.00

0.00

0.00

0.00

0.00

65.42

65.25

65.29 65.49

65.55

0.00

0.00

0.00

Net worth

84.92

84.75

84.79

84.99 84.05

Secured Loans

0.00

2.40

2.40

0.00

0.00

Un Secured Loans

0.00

0.00

0.00

1.00

1.50

Total Debt

0.00

2.40

2.40

1.00

1.50

Sources of Fund

Reserves
Revaluation Reserves

0.00

0.00

=======================================================
Total Liablities

84.92

87.15

87.19

85.99

85.55

0.00

0.00

0.00

Application of Funds
Gross Block

2.15

55

0.00

Less: Accumulated Depreciation

1.29

0.00

0.00

0.00

0.00

Net Block

0.86

0.00

0.00

0.00

0.00

Capital work in Progress

0.00

0.00

0.00

0.00

0.00

Investments

28.38

87.30

32.44

45.11

3.96

Investors

30.20

0.00

0.00

0.00

0.00

Sundry Debtors

22.00

0.00

26.54

0.00

38.81

0.02

0.00

0.00

0.00

0.01

Total current Assets

52.22

0.00

26.54

0.01

38.82

Loans and advances

6.29

0.06

32.00

45.52

45.98

Fixed Deposits

0.11

0.11

0.01

0.01

38.82

58.62

0.17

58.55

45.54

84.81

Deffered Credit

0.00

0.00

0.00

0.00

0.00

Current Liablities

2.93

0.30

3.76

4.52

2.03

Provisions

0.02

0.02

0.04

0.14

0.18

Total CL & Provisions

2.95

0.32

3.80

4.66

2.21

55.67

-0.15

54.75

40.88

82.60

0.00

0.00

0.00

0.00

0.00

84.92

87.15

87.19 85.99

85.55

Cash and Bank Balance

Total Current Assets(L&A)

Net Current Assets

Miscellaneous Expenses
Total Assets

----------------------------------------------------------------------------------------------

Contingent liabilities
Book Value (Rs)

105.24 108.12 108.23 108.23 108.23

43.55

43.46

43.48

43.58

MARKETING DEPARTMENT

56

43.62

Introduction
Marketing means the task of creating, promoting, and delivering, goods
& services to customers and delivering to customers & business.
Marketing is a social & managerial process by which the individual and
groups obtained and what by creating, offering and exchanging products
of value with others.
This function includes storing, sales servicing, after sales services, home
delivery etc.
Marketing management , can be different as constraint with the direction
of the proposal activity towards the attainment of marketing goals.

Objectives of Marketing
There are many objectives laid down by company for doing the
marketing which are discussed as below.
57

 To increase the sales of the company.

To generate more and more revenue to firms through sales promotion.
To help the top management in making and taking decisions related to
marketing.
To help the top management to act as the connecting link between the
consumer and the producer.
To act as the link between demand and supply i.e, by having the
knowledge of consumer demand that much can be produced in time

Organization Chart of Marketing Department

58

CMD

OTC

Sales Manager

Sales Executive

P&D

Export

Manager

Manager

Executive

Executive

Product
A product is anything that can be offered to a market for attainment,
acquisition use or consumption. It includes physical objects, service
performance, personalities, places, organizations and ideas.
At Raghav Industries Product Planning is done by depending upon the new
and some innovative demand of there clients, if any and also by seeing
requirements of the company.

There are five level of product, they are as follows:

Core Benefit.
59

 Generic Product.
Expected Product.
Augmented Product.
Potential Product.

Product Mix
The product mix of a company can be developed or described as having a
certain width, length, depth, and product line.

Product width :

The Width of a product refers to how many different product lines are found
with the company.
At Raghav Industries there are few product lines produced by the company.

Product Depth :
The depth of a product mix refers to the average number of items offered by
the company. There are 8 to 10 product within each and every product mix.
Product Length :

60

 Product Line :
Product Line is a group of different product items closely related to each
other. All the brands of the same product are product line.

Product Life Cycle:

Every product has its own life cycle. The cycle begins with invention of a new
product, and is often followed by patent protection, and further development
to make it saleable.
There are five distinct stages in the life cycle of a product they are as follows:
1. Introduction.
2. Growth.
3. Maturity.
4. Saturation.
5. Decline.
1.Introduction:
Research or engineering leads to product development. The product is put on
the market, awareness and acceptance are mimimal. There are high
promotional costs. Volume of sales is low and there may be heavy losses.

2.Growth:

61

The Product begins to make rapid gains because of the cumulative effects of
introductory promotion, distribution and word-of-mouth influence. High and
sharply rising profits may be witnessed. But to sustain growth, consumer,
satisfaction must be ensured at this stage.
3.Maturity:
Sales growth continues, but at diminishing rate because of the declining
number of potential customers who remain unaware of the product or who
have no action. Also the less of the unsuccessful competing brands will
probably withdraw from market. For this reason, sales are likely to continue
rise while the customers for the survivors mop up the withdrawn brands.
There is no improvement in the product but changes in selling effort are
common. Profit margins slip despite rising sales.
4.Saturation:
Sales reach and remain on a plateau marked by the level of replacement
demand. There is little additional demand to be stimulated.
5.Decline:
Sales begin to diminish absolutely as the customers begin to tire of the
product and the product is gradually edged out by better products or
substitutes.

New Product Development

62

The company is planning to introduce new products. That is they are trying to
make full production of the planning product.
i.e.

Polyester.
Cotton.
Lycra, etc.

The company at present introduced only the sample of the above planned
product and it is looking for the good response from the market. if the
response from the market is fairly positive than they will introduce the
product.
Process for development of new product:
Generally all the company have there own process for developing the new
product. Production process is the important thing for any new product to be
produced as its success or failure depends on its product development.
At Raghav Industries the company generally follows six stages for its product
development. They are listed as below:
1.) Idea Generation
2.) Evaluation
3.) Selection
4.) Testing
5.) Sampling and
6.) Execution

Branding & Packing

63

 Branding :

The brand name should not common but an integral reinforce of the product
concept. Among the desirable qualities for a brand name the following are
important.
It should suggest something about products benefit.
It should suggest product qualities such as cotton, colours etc.
It should be easy to pronounce and to remember.
It should be attractive.
Packing :

The traditional packing concern of manufacturers are product planning,

promotion and economy. Another packing objective which can be considered
is the consumer conventions.
Packing is the main thing for them as it indicates the safety of clothes & the
attractiveness of clothes to the consumers and dealers. It indicates positive
sign of the company.

Pricing Methods &Strategies

64

Pricing policy is only element that creates roles revenue in the marketing mix.
Inspites of increase role of non price factors in the modern marketing process.
Price remains an important element and especially challenging in certain
situation.
In spite a price, the firm must pay attention to pricing objectives, policies and
procedures. The firm can draw guidance from the theoretical pricing model of
the economics. The model however leaves out several factors that have to be
considered in actual pricing situation such as the presence of the other
objectives, multiple parties, marketing mix interaction and uncertainties
surrounding the estimate of demand and cost.

Objectives of Pricing
Pricing determines significantly the bottom line figure on the operating
statement. It determines what product, will and will not be sold in what
volume and with what product.
Some objectives are as follows:
For maximizing the profits.
To develop the product more better than it is in existence.
To compete in the market.
To increase the turnover of the sales.
To get and fully exploit the market beneficial opportunities.

65

The objective of pricing at the Raghav Industries Ltd. Are as follows:

To introduce the latest design with best quality and with mechanical
finishing.
To increase the turnover along with the market competition.

Marketing Policy
The Marketing policy of Raghav Industries Ltd is as disscused below.
To provide the customers the selling incentives, cash discount and trade
discount and giving the grace days for due date for one month.

Promotion Mix
In the words of Philip Kotler, Promotion compasses all the tools in the
marketing mix whose major role is persuasive communication.
According to Mason & Rath, Promotion consists of those activities
that are designed to bring a companys goods and services to the
favorable intention of customers.
The various tools of promotion by which customers may be informed
are as follows
personnel selling,
advertising,
sales promotion techniques and other tools.

66

Thus promotion includes every activity which inspires people to buy

the goods and services of the company.

Channel of Distribution & Management

Channel of distribution means any combination of facilities through
which a product passes between the producers plant to consumers hand.

Manufacturing Unit

Dealer (Whole Saler)

Retailer

Customer

67

Importance of Channel of Distribution

At Raghav Industries Ltd, the importance of channel of distribution are as
under:
The company uses the above channel of distribution because there are
many customers which helps it to supply its product to customers
easily and smoothly.
To make the distribution process easily and smoothly through the use of
channel of distribution.

Channel of Distribution Policy

Generally company selects the channel of distribution strategy on its products
customers and marketing policy.
There are three types of channel of distribution :
1.) Intensive Policy
It means that the company selects the channel of distribution for all the
product or for maximum product.
2.)Extensive Policy

68

It means that the company selects the channel of distribution for some selected
product s and to some selected wholesaler shops only.
3.) Exclusive Policy
It means that the company selects the channel for only one product and selects
to give its practice to any dealer in a particular region.
At Raghav Industries Ltd, the company have to select the Intensive Policy
for selecting the channel of distribution.

69

All the Marketing activities are done by Head Office Tamil Nadu

Competitors
Suryalata Spinning Mills Ltd -

Nagpur

Damodar Threads

Daman

Marudhar Spinning Mills Ltd -

Kim

Gujarat Spinners Ltd

Rajpipla

PriyaDarshani Spinning Mills Ltd- Bhilwada

Birla Century

70

Jagadia

Customers

Sanil Tex (p) Ltd.

Mumbai

Dharam Synthetics Ltd

Umargaon

Khetan Textile

Bhiwandi

Hariom Enterprises

Bhiwandi

Anand Silk Mill

Bhiwandi

Ananthnath Silk Mill Pvt Ltd. -

Bhiwandi

Biren Fine FEB Pvt Ltd.

Mumbai

Ganpati Silk Mills Ltd.

Boisar(Thane)

Shree Bhairav Fabrics

Bhiwandi

Lakhdatar Textiles

Bhiwandi

Mihir Textilles

Bhiwandi

Vidhata Silk Mills

- Bhiwandi

Kundanmal Sureshkumar Satiya - Mumbai

Durby Silk Mills

Maheshwari Udyog

- Ichalkaranji

71

Bhiwandi

Statistical Quality Checking

Department
Introduction
In this department quality of a product is determined and checked. This
department is the most crucial and important department from the quality
point of view of product.
In this department quality of a product is checked at each and every stage of
process so that the quality of the product is maintained. The quality of the
product is checked at every stages like Blow Room, Carding, Draw well
Frame, simplex, Ring Frame, Single winding, Cheese winding, Doubling, etc.
with the help of various statistical Formulas to maintain standard of the
product.
Thus the statistical department serves it duty right from the beginning of
manufacturing of the product till its packing.

72

Description of the Quality Checking at Various Process

Blow Room

Lap Formation as per requirement

Lap Hanks and its checking
Prepare pins cleaning
Opening and beating of Fabrics
Statistical formula for Lap Checking
B/R =

Grams
---------Meter
Lap

0.585
---------340

0.00172

Carding
Sliver Formation
Indication
Cleaning of Fabrics

73

 Drafting of Lap to Sliver

Statistical Formula for Sliver Formation
Sliver

=
=

Lap x Card Draft (93)

0.00172 x 93

0.160

Draw well Frame

Doubling/Drafting
Make Even Sliver
Statistical Formula For Sliver Checking
Card Sliver x No of Doubling
Sliver =

------------------------------------Draft
0.160 x 6

-------------6

Simplex
Roving Formation
Twist Drafting
Building Motion
Deformation for build
Roving Bobbing
Statistical Formula for Roving Count
74

0.160

Roving =

Sliver Draw x Total Draft

0.160 x 10.7

1.71

Ring Frame
Yarn Formation
Gives Draft / Twist
Build up yarn bobbing
Statistical Formula for Ring Frame Count
Count =

Roving x Draft

1.71 x 36

61.56

Single Winding
Corn Formation
Make Cone for Ring Bobbing
Cleaning Yarn through EYC
Cheese Winding
Prepares Yarn from Single Cone as per requirement
One Ply
Two Ply

75

 Three Ply
Four Ply

Doubling
Formation of Twist yarn as per requirement
Double cone winding
Formation of cone from Doubling yarn bobbing
Cleaning yarn through EYC
Packing
Prepares spun yarn cone to put in packing room and droping
water by ban sun fan and packing it to polyester bags.
This spun yarn cones are packed into two different bags
according to there different weights.
Cones are packed into two different size bags of 38 x 46 which
stores 32 cones with weight 1.50 kg each, and another bag of
40 x43 this stores 40 cones with weight 1.75 kg each.

Lot No

Count

Bland

Qty.

Tin/ Shade

P/V

Quality

76

No
Bags

of Kgs

4013

2/40

65/35

Slim

Lightpink

3000

30611

2/30

80/20

Slab

Lemon

600

15039

60

Polyester

Slab

Yellow

70039

2/15

60/40

Slim

LightGreen 4

5400
2400

PURCHASE AND STORES

Purchase and Stores are one of the most important department of any
company. Stores department is the one where the stock of the materials is
stored. Materials which the entire department needed are stored here.
There is a system of issuing material from the stores. Formalities have to
perform by every department. When any department needs any material,
they have to fill a form called Issue Slip. In this slip the department
head mentions what material is needed by the department & in what
quantity. Now these issue slip is than sent to stores department. Here
stores manager checks, if the material is in stock or not. If stock is
available it is send to particular department and if not than they send it to
purchase department.
Now the role of purchase department starts. Purchase department
manager makes an indent & sends it to the top authority for approval. If
they accepts this indent than the work goes ahead. After it the purchase
department sends this indent to different supplier. Mostly in this indent
77

information like (Sr No, Description, Item Send, Quantity o Order, Rate,
Discount, Amount) are quoted. Now supplier sends their quotation and
out of them which one is more competitive. They now sends the letter to
them for final negotiation and the other things like when they deliver,
transportation facilities, installation etc are negotiated.

When the material reaches to the company than firstly an entry is taken
at the gate, and than it comes to stores department. Here materials will be
checked i.e. whether the materials are as per the order, quantity, and
quality or not. If all the things and materials are found proper , it will be
stored to stock &if it is not as per order, than it will be rejected and
returned to the supplier again.
Purchase department purchases in three different ways.
Firstly, it purchases the important items such as raw material like
Polyester, Cotton and Viscose fiber etc.
Secondly the purchase of Diesel, spindle tape, valve barring etc are to
be purchased.
Lastly the purchase of spare parts for machinery are to be made.
For the purchase of all the above materials there is need to take approval of
top authority.

78

CONCLUSSION
The outlook of the Textile Industry seems to be fairly positive, although
it is coupled with certain uncertainties. It is also expected that the export
scenario should improve in the coming years with the abolisation of the
quota system. The company in the financial year under review has shown
some marginal improvement. But in terms of profitability the company is
facing problems in view of utilization of capacity due to low sales.
The company has imitated efforts to improve the performance of the
company and accordingly a step have been taken to strengthen the sales
and marketing function and also towards bringing fabrics apart from the
synthetic blends which has been the companys mainstay in the past.
Thus it had been a great experience for me to now new things going on
in the company and several things faced by me in the company.

79

BIBLOGRAPHY

WWW. Raghav Industries. Com

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