CONTENTS

Sl. No.

TITLE

1. INTRODUCTION ABOUT THE TRAINING

Page No.
1

a. Scope of the training

b. Objectives of the training

c. Limitations of the training

d. Chapter scheme

2. INTRODUCTION OF THE COMPANY

a. Company Profile

3. ORGANISATIONAL STRUCTURE

4. DEPARTMENT AND ITS ACTIVITIES

a. Purchase department

b. Stores department

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c. Personnel department

13

d. Production department

14

e. Quality Control department

17

f. Accounts department

18

g. Marketing & Despatch department

24

5. CONCLUSION

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APPENDIX

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INTRODUCTION
INTRODUCTION ABOUT THE TRAINING
M.Com degree studies are giving very good knowledge in all subjects
related to commerce. But all subjects are not giving much importance for
the practical approach. So the course of M.Com includes having the
practical knowledge through the institutional training. So the institutional
training will clarify the doubts between the theoretical knowledge and
practical knowledge.
The company is the biggest form and it has get high formalities, rules,
regulations so they gave a very good practical knowledge to me.
SCOPE OF THE TRAINING
This training has been taken at AGNI Steels (LTD) (Unit - C)
Natukkal , Palakkad, kerala.

OBJECTIVES OF THE TRAINING

The training takes to deal the following objectives.
1. To acquire practical knowledge about the day to day operations of the
company.
2. To learn about the activities of various department of the company.
3. To classify the organisational structure of the company.
4. To know various practical difficulties in running a company

FRAME WORK OF ANALYSIS

The training organizes on the basis of the following.
1. Companys history and introduction.
2. Organisational structure of the company.
3. Activities of various department of the company.

LIMITATION OF THE TRAINING

1. The training is only for six weeks, so this short period would not be
enough to get clear knowledge about practical.
2. The major sources of the data are past records & hence no new ideas
are included.
3. Detailed statistical datas were not provided by the company.
4. Of course it is a training programme hence no analysis are made for
solution.
CHAPTER SCHEME
The present training consist of five chapter
1.

The first chapter deals with introduction about training

2.

The second chapter deals with introduction history and profile of

the company.

3.

The third chapter consists of Organisational structure of the

company.

4.

The fourth chapter describes the activities of the various

departments of the company.

5.

The last chapter includes with the conclusion of the training.

INTRODUCTION OF THE COMPANY

AGNI Steels Pvt Ltd was started as a Private Limited Company under
the Indian Companies ACT 1956. The registered office of the company shall
be situated in the state of Tamil Nadu. It was incorporationed on

1989

the company registered under the registrar of companies Tamil Nadu. Its
main product is Steel Rods.
The AGNI Steels Unit C is started on 1996 December. The total
turnover of AGNI Steel unit C is 9.87 cross in last year. The company is
located at Nattukkal Palakkad District, Kerala. Its main product is
M.S Ingots. The product is the main raw material for the steel companys
which produces different type of steel rods. These rods are used in
construction of buildings.
AGNI Steel Pvt Ltd., an ISO 9001 company AGNI Steels unit C to
get the ISI Certificate on our product in 2000 ( No. 2830 - 1992) onwards.
The main raw material used for producing M.S. Ingots is M. S. Scrap
or HMS (Heavy melted Scrap). The other raw materials are Sponge Iron,
Ferrous Silicon & Ferro Manganese. The maximum Production Capacity
per process is 3.5 tons.

COMPANY PROFILE
Name of company

: AGNI STEELS PRIVATE LIMITED.

Registered Office

: Tamil Nadu.

Board of Directors

: Mr. M. Chinnasamy, Managing director

Mr. R. Krishna Moorthi, Director
Mr. K. Thangavelu, Director.

Auditor

: G.N. Jayaram Associates

Muthukumaraswamy Nagar
Pillai Street, Erode 638 001.

Bank

: SBT ( State Bank of Tranvancore - Chitture)

Capital

: 113 03 Lakhs

Date of Commencement

: 1996 December 31

Head Office

: AGNI Steels PVT (Ltd),

39 / 11 Perundurai road,
Builders Association building Ist floor
Erode 638 001.

Location of the company

: AGNI Steels Pvt (Ltd) Unit C

S.F. No 497 / 1 , Nattukkal,
Nalleppilly Village, Chittur (T.K),
Palakkad (D.T) 678 554.

ORGANISATIONAL STRUCTURE
INTRODUCTION
The Organisational structure will describe the real position of every
personnels and their duty, responsibility and the powers. This
classifications are very important to reduce confusion and ensure normal
course of action.

Managing Director

Director

Workers

Supervisor

Director Marketing

General Manager

Clerical Staff

Purchase Officer

Stores Department

Stores Incharge

Clerical Staff

Personnel Manager

Electrical Engineer

Production Manager

Chemist

Quality Engineer

Clerical Staff

Accountant

Clerical Staff

Sales Officer

LIST OF DEPARTMENTS

1. Purchase department
2. Stores department
3. Personnel department
4. Production department
5. Quality Control department
6. Accounts department
7. Marketing & Despatch department

PURCHASE DEPARTMENT
INTRODUCTION
The company have a separate department for purchase. This
department plays a very important role in an organisation.
The department handles the requirements of materials of all other
division and department. The company has to purchase the raw material,
Ferro Silicon, Ferro Manganese, Electrical and Electronic equipments.
The purchase department plays a vital role because purchasing has its
effect on every vital factor evocating the manufacture, quality, cost
efficiency and prompt delivery of goods to customers.
OBJECTIVES OF PURCHASE DEPARTMENT
1. To much continuous availability of materials so that there may be
uninterrupted flow of materials for production.
2. to make purchase competitively and wisely of the most
economical prices.
3. to make purchase in reasonable quantities to keep investment in
material at minimum.

CREDIT PURCHASE
The company obtained maximum credit for purchase of raw materials
and also maximum credit is given to the dealers.
CASH PURCHASE
There is no cash purchase in the materials.
MODE OF PAYMENT
Mode of payment to the suppliers in terms cheque or demand draft.
PERIOD OF PURCHASE
The purchase is made regularly.
PURCHASE PROCEDURE
Purchase department offer quotations from the suppliers of
consumable goods (electrical) & (electronic) equipment. After fixing one
quotation the purchase department prepares a purchase order for the written
authorization to the suppliers to supply the particular material or materials.
The suppliers is bound to supply the materials according to terms and
conditions of the purchase order. It is a document which gives the authority
to receive the materials ordered for and to the accounting department to

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accept the bill from the supplies for payment. The main raw materials are
purchased day to day market rate.
The enquiry regarding the purchase of raw material is done through
telephone and no quotations are not invited.
STORES FACILITIES
The company has a stores department for electrical & electronic
goods, sponge iron, Ferro silicon, Ferro manganese.

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STORES DEPARTMENT
INTRODUCTION
The purchased electrical and electronic goods are stored in the stores
department. The stores Incharge to keeps record of electrical and electronic
goods which comes in and goes out in the stores department.

Procedures
The purchase goods are received and are accounted in the material
inward note after receiving the receipts. Then the materials are inspected by
the stores manager and they are stored.
While issuing the raw materials for the production the stores
department accounted it in the material outward note (i.e) delivery slips are
send account department for stores record, the stores department is located
in a safe place so that any unexpected accidents like fire, theft are avoided.

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SPECIMEN FORMS
Material Inward Note

S.No

Date

Description of

Quantity

Bill

of Balance quantity

Inputs Received

Received

Entry. No. & of stock

Remarks

Date

Material Out ward Note (Delivery Note)

S.No

Date

Description of

Quantity

Balance quantity of

Outputs

Delivered

stock

13

Remarks

PERSONNEL DEPARTMENT
Personnel means managing the workers at work. The company has
good relationship with the workers. The personnel is headed by general
manager.
The company total work force is 17 there are two shifts in a day.
Day shift from 8.00 am to 8.00 p.m
Night shift from 8.00 pm to 8.00 Am
For each shift the will be one supervisor. The supervisor looks after
the production, working conditions of the machine efficiency of the
workers.
A separate fields maintained with regard to attendance, daily turnover,
wages and salary ESI and PF. The company has always been regular in
depositing provident fund and employees. State insurance (ESI) due with
appropriate authorities.
Payment of salary
The company is paying salary for all the workers on monthly basis.

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PRODUCTION DEPARTMENT
The main product of AGNI Steel (Unit -C) is M.S Ingots. This
product is the main raw material of the steel companys after some
processing M.S. Ingots to convert it to steel rods, mainly this steel rods are
used in the construction of buildings and bridges etc.

RAW MATERIAL
The main raw material used for production is M.S Scrap or H.M.S
(Heavy Melted Scrap) this is one of the important scrap.
Some other raw materials are
1. Sponge Iron,
2. Ferro Silicon
3. Ferro Manganese

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INGOT MANUFACTURING
PRODUCTION PROCESS
The raw materials (scrap) are received and inspected for us Chemical
composition and segregated depending on us Quality. The segregated raw
materials are stored in the Specified area and are moved to the furnace area
for Charging into the furnace.
The furnace is prepared for charging the raw materials, which is fed
into furnace for melting.
Mixing of raw materials of different qualities to the Proportion is
made and charging takes place. The furnace is then charged and melting of
materials is done.
Bath sampling is done while melting for testing chemical
Composition based on the testing if required additives are added in the
charge.
In the meantime, the moulds will be positioned on the bottom plate
with the lining of refractory bricks on the bottom plate. It is then patched
with the fire clay wherever necessary and the trumpet /centre column will
be Positioned in the centre portion of the bottom plate so as to Pour the
molten metal through the center column.
Final inspection of the charging is made.

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The molten metal @ 1450 c will be poured into the moulds through
the center column and after necessary cooling for half hour the moulds will
be removed from the bottom plate and the ingots inside the moulds will be
removed from the moulds and allowed for further cooling, after Attaining
the atmospheric temperature, the ingots will be dressed and stacked.
Now the ingots are ready for delivery.

Process Flow Diagram

MS Scraps
Feeding scraps in batches into the Ton Induction furnace by the help
of EOT Crane

Switch the furnace and gradual melting starts. Adding further scraps
and continuing the melting process

Removing slag from molten metal

Adding Ferro silicon & Ferromanganese to the molten metal
Super heating the molten metal to 1500o C
Pouring the molten metal into Moulds
Taking out the moulds after required cooling .
Taking out the Ingots from the bottom plate and after cleaning the
ingots are ready for despatch.

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QUALITY CONTROL DEPARTMENT

The raw material (scrap) are required and inspected for its chemical
composition and segregated depending on its quality. At the time of
production process quality Incharge to take the sample of melted scrap and
to testing its quality after testing the quality the quality control manager has
to submit the report to production manager. In case the carbon content is
high, the sponge Iron is used to reduce the carbon content to maintain the
quality of M.S. Ingots.
Production process
Melted scrap
Quality
Controller
Testing
Report to production manager

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ACCOUNTS DEPARTMENT
INTRODUCTION
Accounting is the basis of knowing the financial position of a
concern. Here accounting transaction have been computerised. Companys
accounting package is FOXPRO Zigma Financial Accounting.
Accounting Procedure
The day to day transactions are entered in the day book and cash
books, journalized and posted in the ledger with respective account, at the
end of the financial year the trial balance is drawn and profit and loss
account and Balance sheet are prepared.
Day Book
It contains all details of expenses incurred by the company the
expenses are met by the company which are hosted daily.
Items of day book
Cash payments and cash receipts.
Cheque payments and receipts of D.D.

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Cash Book
All cash transactions are entered in this book, when any amount is
received in cash or cheque it is credited in the cash book. All cash payments
are credited in the cash books.
Purchase Journal
As soon as the raw material are purchased from the supplier, they are
entered in the purchase journal.

Signature

Party remarks detail

Bill No & Date

Amount

Description of Goods

Our Weight

Party Weight

AddressParty Name &

Date

S.No

Specimen Form

Sales Journal
In the sales journal all the matters regarding sales are entered. The
entries are made regarding the values . the party to whom it is sold and etc..
this is done as soon as the sales are made.

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Net Value

KGST

Total

Basic Excise Duty

Value

Quantity

Party Name

Invoice No.

Date

S.No

Specimen Form

Debtors Ledger
Debtors Ledger maintained to know the amount

due from the

parties to whom goods are sold. Hence goods are sold more on credit so
there is more debtors.
Creditors Ledger
Creditors are those from whom raw materials are purchased and the
payment is still due. The company settles the account according to contract
either by cash or by cheque / demand draft. As soon as the company settles
the amount the bill are received and entered in this ledger.
General Ledger

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Except debtors and creditors all other items are entered in this ledger
the items which are entered in this general ledger are assets and liabilities,
profit and loss account and balance sheet are prepared.
Ledgers (Specimen form)

Transaction
Date

Accounts
Description

Invoice No.

22

Credit

Debit

VERIFICATION PROCESS
VOUCHER
A voucher may be define as any document which evidence a
transaction or an entry in a book of account it may be in the form of a
money receipt, cash memo, bank pay-in-slip, agreement or contract etc..,
Eg. for a voucher are confirmation requisites as to debtor or creditor
account, purchase invoice cash memo form purchase etc.
VOUCHING
Vouching may be benefited as such an examination of the ledger
entries as satisfies by support by documentary evidence but that it has been
property made up to the book of account.
Vouching is done to verify that each and every entry in the books of
accounts is supports by a voucher.
PURCHASE BOOK
This book contains all transactions regarding purchases which are
usually maintained by all firms and companies. It consists of formal
recorded in purchase day bppk and the parties account creditors ledger.
SALES BOOK
This book contains all the sales transaction of the firm duly recorded
in the sales journal bill of all sales collected. In the sales book and entries
made in the respective buyers account in debtor ledger.

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Cash book is maintained in all account to record all the cash

transactions regarding the receipts and payment of each of the firm should
be supported by cash voucher the payment are given credit and the receipts
are given debit.
GENERAL LEDGER
The general ledger contains all the accounts related to the expenses of
more and maximum amount includes maintenance charges, telephone,
postage stationery and printing etc. it also includes the capital accounts of
the related parties.

Functions of Accounts department

1. Maintaining the records in an orderly manner and chronologically.
2. Submitting records to the management.
3. Checking and passing of bill for payment.
4. Making payment of wages to employees.
5. Submission of records to the Auditor.

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MARKETING AND DESPATCH DEPARTMENT

Sales department deals with the sale of M.S. Ingots marketing
and Despatch Incharge to collect the day to day market rate of M.S. Ingots.
The major part of the finished goods is supplied to the steel manufacturing
concern.
The company is making sales in many types.
1. Intra State Sales
2. Inter State Sales
3. Stock Transfer
The state of the company is selling some portion of their output to
various steel companys situated.
Intra State Sales
The state of the company is selling some portion of their output to
various steel companies situated in Kerala.
Inter State Sales
The company is also finding the market in other states.

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Stock Transfer
The company usually transfers stock to the other unit at cost price
which is considered as inter sales.
Sales tax
The company pays sales tax for M.S. Ingots
KGST (Kerala Govt Sales Tax) 4% ,
CST(Central Sales Tax) 8%

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CONCLUSION
The training which I have undergone at AGNI STEELS PRIVATE
Ltd, for a period of 6 weeks, was of great help to me in obtaining practical
knowledge of various department and its activities.
The accountant and the staff members guided me and helped me to
great extend in my training period. This training will help me to get a
practical knowledge of maintaining the accounts of business concern.
Training has given a chance of making direct communication with
official persons and the workers of the company. It gives an idea about the
difference between the theoretical study and practical study.
Once again I thank each and every one who helped me in preparing
this report.

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