INTRODUCTION TO THE COMPANY

This is a training done to know the management of various departments of

a popularly known UNIWORTH LIMITED.

UNIWORTH, the first winds of change in india’s economic policies of

industrial deregulation & global integration beckoned the uniworth group to set

up manufacturing stakes in India in 1990 . Since then the Uniworth group has

taken great strides.

With successive investments in vertically integrated production capacity in

diverse segments of the wool & worsted textile industry in India & abroad the

group has witnessed meteoric growth.

A front ranking player in the industry, Uniworth has regularly bagged

national awards for product quality & performance.

Leadership through excellence sums up the management philosophy of the

Uniworth group of companies. The group is farsighted in its vision &

international in its mind-set. It aspires to be competitive in global as well as

domestic markets. It is comprehensively committed to superior product quality

blended with innovation. The core values of the organization are centred around

sound business ethics, customer service & satisfaction.

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YEAR EVENT OF UNIWORTH COMPANY

The Company was incorporated in the State of W. Bengal on 11th August

and obtained the Certificate of Commencement of Business on 18th August. It

was promoted by N.R. Lohia Ajay Prakash Lohia of the Uniworth Group that has

wide interest in Agro Chemicals Steel etc. and Madhya Pradesh Audhyogik Vikas

Nigam Ltd. (MPAVN). The Main object of the company is to manufacture

worsted wool and blended spun yarn.

The Company undertook to set up a 100% Export Oriented Unit (EOU)

for the manufacture of Worsted spun yarn (Pure wool and wool blended with one

or more polyester viscose silk fibre) with a capacity of 7.87 lakh kgs. per annum.

1990 - The Company undertook to double its production capacity. The

company's silk division was at an advanced stage of implementation in split

locations - degumming unit at Malda in W. Bengal and spinning unit at Raipur in

M.P. The spinning facility reached an advanced stage of implementation.

The company had a technical collaboration with Cascami Seta one of the

world leaders in Silk Technology for silk/noil spun yarn project.

1991 - 700 No. of equity shares subscribed for by signatories to the

Memorandum of Association 116 39 300 No. of equity shares then issued at par

of which the following were reserved and allotted:

(i) 32 50 000 shares to NRIs on repatriation basis;

(ii) 13 89 300 shares to Indian resident directors their friends etc. and

(iii) 5 00 000 to MPAVN. Of the remaining 65 00 000 shares the

following were reserved for allotment on a preferential basis:

(i) 9 00 000 shares to mutual funds

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1992 - The company had promoted Uniworth International Ltd. to develop

global marketing network for exports and to promote new manufacturing ventures

in India and abroad.

The Company undertook to double its silk spinning capacity to 6400

spindles and also 320 spindles with open end process were being installed for

spinning fine quality noil yarn to achieve higher value addition.

The Company proposed to further expand the worsted yarn capacity to 20

992 spindles by installing 3200 spindles with necessary balancing equipments to

optimise its capacity and improve productivity. The Company also have plans to

establish a complete range of dyeing facilities including computerised colour

matching equipments.

The Company also promoted another 100% EOU under the name

Fabworth (India) Ltd. to manufacture four million metres premium quality

woollen/silk fabrics per annum for exports.

During February the Company issued 33 46 500-12.5% partly convertible

debentures of Rs 90 each on Rights basis in the propn. 25 debentures: 100 shares

held. Additional 5 01 975 debentures were allotted to retain oversubscription.

Simultaneously another 1 76 100-12.5% debentures were offered to

employees on an equitable basis. Additional 26 415 debentures were allotted to

retain oversubscription.

Part A of Rs 10 of the face value of each debenture was to be converted

into one equity shares of Rs 10 each at par on the date of allotment of debentures.

Accordingly 40 50 990 shares were allotted in April.

Part B of Rs 30 of the face value of each debenture was to be converted

into one equity share at a premium not exceeding Rs 20 at the end of 20 months

from the date of the allotment of debentures.

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Part C of Rs 50 of the face value of each debenture was to be redeemed in

3 annual instalments at the end of 7th 8th and 9th year from the date of allotment

of debentures. The issue was to part finance Company's expansion programme of

spun silk yarn and worsted yarn.

Subject to necessary approvals being obtained the company proposed to

issue rights equity shares of Rs 10 each at a premium not exceeding Rs 50 per

share in the proportion of 1:2.

2002 -Uniworth Ltd has informed that Mr Santosh Kumar Jain has

resigned as a Director of the Company w e f July 23 2002 and Mr K Darbari has

resigned as a Director of the Company w e f June 30 2002. The Company has

further informed that Mr Anand Gopal Bhatnagar has been appointed on the

Board as Additional Director w e f July 25 2002.

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COMPANY PROFILE

Uniworth Limited, the flagship company of the Uniworth group is a name

to reckon in Indian industry & is a major player in Indian exports. The company

has an imposing array of products & specializes in worsted yarn, worsted knitting

yarn, polyester wool blended yarn, dyed yarn. Almost the entire production of

worsted & polywool yarn is exported to the discerning markets in Europe , japan

& north America. For Indian weavers they are truly luxury yarns of international

standards at affordable prices. Its plants are located in Nagpur & Raipur are

equipped with state - of - the - art machinery from leading names like NSC,

Volkmann, Schlaforst & Zinser. Its dyeing facilities are comfortable to the best in

the world & includes Vigrouex printed range.

Raw material is sourced from the finest sheep – the austrailian merino.

Accredited by interwools – Belgium, the Uniworth laboratory is responsible for

process monitoring & extensive quality control measurements. Its stringent

quality control systems coupled with the latest technology has gained for it the

prestigious Woolmark Symbol & ISO 9002 certification. The company is the

recipient of prestigious awards from the government of India as well as other

export organization for its record breaking achievements in exports.

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COMPANY DETAILS

Business Type : Exporter / Manufacturer

Products

Manufacturing and

Exporting

:Woolen worsted yarn, silk yarn, noil

yarn

Key Officials:

Mr. Shiv Sharma

Mr. Kishore Jhunjhunwala Mr. Sanjeev

Saxena

Mr. Anand Gopal Bhatnagar

Mr. Shreekrishnan Jhunjhunwala

Mr. Subid Chandra Majumder

Executive Director

Director

Nominee Director

Director

Director

Director

Business Type:  Manufacturing 

Main Markets:  Africa

Asia

Europe

Middle East

Worldwide 

Year Established:  1985 

Number of

Employees: 100+ 

Legal

Representative /

CEO: 

SALES 

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Public Issue Date: Not

AvailableBSE CODE: 514144

NSE CODE:

WOOLWORTHBE

Face Value: 10 Market Lot: 1 ISIN: INE207A01013

Current PE: 0 Current Market Capital: 9.3122

Promoters %: 38.3435

Promoters Shares: 13031515

Institution Investment %: 0.4963

Institution Investment Shares: 168673

PURCHASE & STORES DEPARTMENT

This department is responsible for the purchase of raw materials from the

suppliers and sent to the stores section of the production department. The

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purchase department and the production department are inter-related closely. The

purchase manager is responsible for the purchase department activities. He is

assisted by his assistants.

The purchase department is the one that is in charge for purchasing the

raw materials from the suppliers. The stores department is closely in touch with

the purchase department, as it store the raw materials.

The purchase manager will be intimated by the stores manager, when the

stock gets reduced to the re-order level. Now the purchase manager will know

that there is a need for the raw material. So, he in turn intimates the supplier who

supplies that particular raw material for the company. When the supplier receives

the order, he will ask for the delivery time. The company gives this information

according to the urgency of the need.

In Stores Department, spare parts, stationery items are purchased and

stored by the department. Following are function of Stores Department:

1. Whether particular order is required ?

2. Whether order can be postponed ?

3. How much to order and at what price to order?

4. Whether there is any alternative ?

5. When to order ?

To perform the function effectively, Stores Department follows the following

procedure:

1. Item required - The Store Officer does not initiate any action for the

purchase of materials. The purchase requisition is initiated by the various

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department. Items required by the each department is intimated to the

Store Officer and recorded by him.

2. Enquiry- The source of supply of material must be selected in order to

select good source of supply, following factor is to be considered:

Quality

Price

Delivery time.

Based upon these factors, enquiry is done among the various source of

supply. All the factors should be satisfied by the suppliers.

3. Quotation from suppliers- Quotation is invited from the suppliers by

issuing tenders to them. On receipt of quotation from the suppliers, a

comparative statement of various quotation received should be prepared &

the desirable suppliers is selected.

While selecting the suppliers to whom order is to given for the

purchase of materials the stores department should keep in mind the following

factors:

- Reliability of supplier

- Price quoted

- Quantity for which price quoted is applicable

- Terms of payment

- Terms of delivery

All the other factor being the same the purchase price should be the lowest

price at which a particular material is to be purchased. The supplier should be

dependable and capable of supplying materials of uniform quality at right time at

reasonable prices.

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PURCHASE ORDER

After choosing the supplier, the Stores Department prepares the purchase

order for the supply of stores. The supplier is bound to supply materials

according to the terms and conditions of the purchase order.

RECEIVING MATERIALS

The Storekeeper receives the material by checking the Challan, quantity,

quality of materials is checked by comparing purchase order with delivery

challen. Any storage or breakage is intimated to the suppliers after checking the

Storekeeper receives the material and store it in the Stores.

DAY BOOK ENTRY

After receiving the material entry is made in the day book. Invoice are

checked with reference to Stores received notes and the purchase order

respectively.

COMPUTER ENTRY

Later on entry is also made in the computer.

INTIMATION

Intimation is given to the various departments and the department has to

collect the required materials from the Stores Department.

STORE REQUISITION SLIP

Store requisition slip is maintained by the department for each material.

Before issuing materials to the departments, entry is made in the requisition slip.

Documents maintained by Stores Department

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GRN

RGP

RMDC

MRS

MRN

BIN CARD

DC

1)GRN: GOODS RECEIVED NOTE.

There are three types of GRN.

a)Purchase GRN:

When the materials are purchased from the suppliers and brought into the

company the PURCHASE GRN is prepared. This document is used to record the

quantity of raw materials purchased from the suppliers. They have some

important particulars such as the raw material code, raw material name, date of

purchase, time of purchase, etc.

b)Inter department GRN:

When any materials are exchanged between the departments, then this

INTER UNIT GRN is prepared. This GRN gives proper information about the

raw materials that are transferred from one department to the other.

c)End bits GRN:

When scrap is given back to stores from production, the END BITS

GRN is prepared. This GRN will provide the details about the scrap sent back to

the stores at any given time. It will have some details like, the value of the scrap,

the root product from which the scrap has been taken, etc.

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2)RGP: RETURNABLE GATE PASS.

This challan is prepared for the material which has been given to the

subcontractors for sample.

3)RMDC: REJECTED MATERIAL DELIVERY CHALLAN.

This challan is prepared when the rejected components are sent back to

the supplier. This is done when the components or raw materials have some

defects in it.

4)MRS: MATERIAL REQUISITION SLIP.

This slip is prepared by the supervisor and sent to the stores for the

requisition of material.

5)MRN: MATERIAL RETURN NOTE.

If the materials are in excess, then the production department will return

the materials to the stores. This slip is prepared by the stores manager.

6)BIN CARD:

BIN CARD is maintained by the store keeper for the correct stock balance

of the material. When the materials are given for production then the store keeper

is reduces the stock of the material, in the material issued column. When the

materials are purchased, the store keeper increases the stock of the material. This

bin card maintained separately for each material.

7)DELIVERY CHALLAN

The delivery challan is maintained for the purpose of recording the

amount of goods delivered to the dealers. Once when the goods are sold to the

dealers this delivery challan is prepared.

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HOW THE RAW MATERIALS REACH THE PRODUCTION

DEPARTMENT?

When there is a need for the raw material, the company orders for it to the

suppliers. When the raw materials reach the stores department the purchase GRN

is prepared and it is received by the employees. The stores manager checks the

documents and then, signs for the company. Now the stock level will get

increased. When the production department needs the raw materials, the

production manager will request the stores manager to send the raw materials

required. The stores manager prepares the inter department

GRN and then sends it to the production department. Now, when the raw

materials are received by the production manager, he checks whether he has

received the required amount. Then, he sends the raw materials to the production

unit to proceed with the production process.

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PRODUCTION DEPARTMENT

Production manager looks after the production process. He has a group of

people to assist him in looking after the functions of this department. Various

documents and records are maintained by the production department personnel.

Silks is associated with legend, fable and folklore. Silks connotes luxury

and class, combining durability with lightness and lustre. The connoisseur have

rightly assigned a niche status to silk as “Queen of Textile “ for its beauty and

grace.

Uniworth silk has emerged as a premier producer of spun silk and

bourette (noil) yarn in India, using spun silk technology s ourced from Europe

and further developed to Indian conditions. The silk spinning unit has established

itself as a leader in terms of quality of spun silk yarn, which is electronically

cleared and has the distinction of being the largest manufacture of both spun silk

as well as bourette yarns in India.

Weaving is undertaken on rapier looms and is processed and finished on

state of art machinery incorporating the latest technology to obtain value added

products.

Spun silk yarn is used for the manufacture and export of superior fine silk

shirtings, ladies dress materials, scarves, neckties, jackets, carpets and is also

blended with other yarns for bringing out bright fancy effects in ladies shawls,

undergarments, etc in natural shades as well as exotic colour woven designs. Silk

Noil Yarn is used mainly for unholstrery and furnishing fabrics, wall hangings

and for fancy effects in the fabric. It also produces designer fabrics for giving

bright and gorgeous effects in the ladies dresses. It is also blended with other

yarns to produce special fabrics.

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Presenting Premium Men’s Wear for that extra confidence in your

personality. Men’s Suits and Jackets created with a vision to meet the preference

of those who want to be preferred. To meet the requirements of the one who

considers elegance and comfort lies in carrying himself around Uniworth

Apparels.

Branded parallel to any international fashion label and identified as the

supplier to some of the world’s most important designers, retailers and names

that matter in the business of men’s apparel. The fully air-conditioned Export

Factory of Uniworth Apparel Limited located in Navi Mumbai, houses the finest

state-of-art plant and machinery supplied by world leaders in textile machinery

like Paff, Durkopp, Strobel, Indupress and Brisay Value addition to its fabric to

suit the Indian consumer provides the key to Uniworth Apparels success story.

Long experience of successful operations in overaseas markets in Europe,

America and other developed countries has provided the management with the

know how for market penetration, supported by a team of expert technicians from

Europe’s leading manufacturers, paving the way forward for Uniworth Apparels.

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PROCESS FLOW CHART

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WOOL TOP [RM]

GILLING/ COMBING/ GILLING

RE-COMBING/ GILLING

PREPRATORY

RUBBING

CARDING

WINDING

SPINNING

STEAMING

DOUBLING/ TWISTNG

STEAMING

CONDITIONING

PACKING

QUALITY CONTROL DEPARTMENT

“QUALITY POLICY OF THE COMPANY”

“We commit ourselves to manufacture and supply quality products of

worsted spun yarn at competitive price to the satisfaction of our customers

through employee’s participation, involvement of vendors, efficient &

effective operation, implementation & continual improvement of the quality

management system, thus becoming a preferred supplier.”

The Quality control section is a part of the production department. It

checks for the quality of both the raw materials and the finished goods. The

Quality control Manager looks after the activities. The quality control department

helps the company to earn goodwill and to occupy a space in the good books of

the customers as it helps the company to manufacture the best quality products.

The quality control department is a very small department, which checks

the quality of both the raw materials and the finished products. When the raw

materials enter the company, it is brought to the quality control department to

check the quality of the raw material purchased. There will not be many flaws in

the raw materials, because the company purchases the raw materials from the

suppliers who are very loyal to the company. Some tests are made to check the

quality of the goods that are purchased. When the quality is approved by the

quality control department, it is sent to the stores department for further

procedures.

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There are some instruments to check the product. Some of them are:

INST

NO.

NAME OF

INSTRUMENT

USES

1 O.F.D.A For Fibre microns diameter check.

2 Almeter For checking fibre length.

3 Balance mettler at 400 For checking the balance.

4 Uster tester – 3 For checking yarn evenness.

5 Wrap reel For counting the fibres in micron.

6 Bursting strength tester To check the strength of the cotton.

7 Board maker For yarn appearance.

8 Oven To dry the moisture percentage.

9 Statement To check Yarn strength.

10 Fort moisture % analyser To analyse the moisture

percentage.

11 Hygrometer For analyse temperature & RH%

12 Hairness tester To see the hairness in the yarn.

13 TPM tester Twist checking.

14 TOP tester To remove Visual defects.

15 Rapid oil tester To check Oil percentage in the

yarn.

16 Fibre bundle strength t For checking strength of fibre.

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MARKETING AND DESPATCH DEPARTMENT

Sales and despatch to the customer is done in this department. Various

marketing strategies are handled to improve the sales. Sales promotional

activities are also undertaken by this department

The Terry products are exported through middlemen. Marketing

departments performs the marketing activities of the organisation. They are

1. PRODUCT PLANNING:

Marketing department plans the product to be manufactured. Product

planning is done based upon the market trend and availability of raw materials

and other resources.

2. PRICING STRTEGIES:

It follows pricing strategies while fixing price for a product. Just in time

Method is followed. Approaches of pricing strategies are internal working cost

and external negotiations. Internal working cost can be of price of raw materials,

labour cost etc. External negotiations can be from suppliers of raw materials and

buyers of products. Factors affecting the price and Yarn price, market trend,

chemical cost, labour cost, Dollar value etc.

3. BRAND NAME:

Middlemen’s brand names are used for the product.

4. PROMOTION

No promotional activities are taken by manufacturers. Only middlemen

promote the products.

5. PLACE

Product is mainly exported to the countries like Europe, Japan and North

America.

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EXPORT DEPARTMENT

DOCUMENT REQIURED

In order to clear goods imported from abroad into the country the

following documents should be submitted:

Bill of Lading

Delivery Order

Commercial Invoice

Certificate of Origin

Packing List

Manifest

Import License and Release Order ( in case of goods under control

PROCEDURE:

Export through one of the customs ports can be done as follows:

a. EXPORT

This includes the countries industrial, agricultural, and animal products.

The competent ministries and departments approve the bill and issue a certificate

of origin for all national products meant for exportation. A copy of these

documents should be submitted upon processing an export application.

b. RE-EXPORT

It covers all type of goods of foreign origin, whether they may be imported

against admission charges or against payment of deposit. As for the goods

imported against payment of a deposit, these goods should be exactly the same

materials that have been imported in terms of quality, quantity, character, marks,

and brand name. The goods imported against payment of admission charges

should also go together with commercial bills issued by the exporter and these

bills should, along with the certificate of origin, be approved by the competent

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authorities. Copies of these documents must be kept along with the truck to

properly complete exit procedures.

c. TEMPORARY EXPORT

A Temporary export through any of the countries ports for all types of

goods which had already been brought into the country against payment of

admission charges and which would once again be imported back into the country

should be indicated on the commercial bills and be printed on the exit bill, stating

the reasons for exportation, and giving the numbers and marks on the export bill.

International Terms Used

In an attempt to better understand some commercial terms, experts at the

International Chamber of Trade have divided the different transactions into four

groups:

Factory Group

Given the letter E as reference, It exclusively covers the term EXW. This

means that the seller delivers the goods to the buyer at the warehouse/ seller’s

factory.

Unpaid Shipping Charges Group

Given the letter F as reference, It usually comes in the following terms

FCA, FAS, and FOB. This means that the seller will hand the goods over to the

shipping agent appointed by the buyer at a certain location without entering into a

shipping contract.

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Paid Shipping Charges Group

Given the letter C as reference. It usually comes in the following terms:

CIP, CFR, CIF and CPT. In this case the seller makes a shipping contract and

pays for the shipping charges, but without taking the liability for risks of the loss

or damage which the goods may sustain, or any additional expenses that may

result after shipping the goods up until they reach their destination on the buyer’s

end.

Arrival Group

Given the letter D as a reference. It usually comes in the following terms:

D.A.F: The seller takes care of the shipping arrangements, the risks,

payment of the shipping charges and all expenses until the goods are

delivered at the border station in the importing country.

D.E.S: The seller takes care of the shipping arrangements, the risks,

payment of the shipping charges and all expenses until the goods are

delivered on/in the means of transportation in country of destination.

D.E.Q: The seller takes care of the shipping arrangements, the risks,

payment of the shipping charges and all expenses until the goods are

delivered on deck in country of destination.

D.D.U: The seller takes care of the shipping arrangements, the risks,

payment of the shipping charges and all expenses until the goods are

stored in the warehouses in country of destination.

D.D.P: The seller takes care of the shipping arrangements, the risks,

payment of the shipping charges and all expenses until the goods are

stored in the warehouses in country of destination and customs duties are

paid in the importing

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Few step for an enterprise to become an export organisation are:-

1) REGISTRATION AS A BUSINESS ENTITY:- A new export unit can be

started by registering as proprietorship, partnership or limited liabilitycompany.

2) IEC NUMBER - Any company wish to export/import need to obtain a Import

Export code(IEC) number. IEC is issued by Regional licensing authority of

DGFT. For communication with any office in regard to for export and import

needs IEC number.

3) RCMC means the certificate of registration and membership granted by an

Export Promotion Council/ Commodity Board/ Development Authority or other

competent authority as prescribed by Foreign Trade Policy to an exporting unit.

Any person, applying for a licence/ authorisation/certificate/permission to import/

export or any other benefit or concession under Foreign Trade Policy is required

to furnish (RCMC). It is also required for executing a bond before Central Excise

authorities, which exempts exporters to furnish bank guarantees.

Export Promotion Councils have been set up by various ministries of the

Central Government to promote and develop the exports of particular group of

products, projects and services. For certain group of products, which are sensitive

from the viewpoint of national consumption, there are commodity boards instead.

Thus while we have export promotion councils for apparel, leather, software,

chemicals, engineering goods etc., India has commodity boards for tea, coffee,

jute etc.

4) REGISTRATION WITH SALES TAX OFFICE :-Exported goods from India

are exempt from central & state sales tax. However, for getting exemption of such

taxes or claming their refund, wherever permissible under Foreign Trade Policy,

the exporting unit should be registered with sales tax authorities.

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5) REGISTRATION WITH EXCISE DEPT.:-If an exporting unit is engaged in

manufacturing of products, it needs registration with excise department &

formalities remain the same as for any domestic unit. This registration is required

for claiming refund of excise duties under various schemes of the government.

FINANCE DEPARTMENT

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The finance department is the heart of the company. This department is

supposed to be arranging the funds that are required by the company. The finance

department is the blood of the whole organisation as it provides the sufficient

funds that are required for the working of the organisation. The finance manager

is in charge for the functioning of this department. The finance manager arranges

for the funds and cash that are needed.

ACCOUNTING YEAR:

The uniworth industry follow the April – March financial year. By the

end of each year, the company is supposed to submit its accounts to the external

auditor. They pay some taxes and duties.

The auditing of the company is of two types. They are:

a) Internal

b) External

INTERNAL AUDITING:

The internal auditing is done by the internal auditor of the company. The

internal auditing is done once in a month. The internal auditor checks for the

accuracy of the accountants. The entries in the daybooks and the ledgers are

posted daily by the other accountants. By the end of every year, the trading and

profit and loss account and the balance sheet is prepared to find the financial

position of the company. By preparing the trading and profit and loss account and

the balance sheet, the managing director will know whether the company is

enjoying a profit or it is running in a loss.

EXTERNAL AUDITING:

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The external auditing is done once in a year. This is done by an external

auditor, who comes from the auditor’s office. He checks for the accuracy of the

accounts.

CREDIT PERIOD:

Uniworth industry receive a credit period of 90 days from their suppliers

for the purchases that they make. They give a credit period of 30 to 60 days for

their dealers and customers.

They generally do not give any cash discount, as the transactions are done

on the credit basis. When they make cash transactions, they give cash discounts

also.

MONTHLY REPORTS:

The general monthly reports that are prepared are:

a) Total receipts

b) Total payments

c) Outstanding list of debtors

d) Outstanding list of creditors

The above listed reports are prepared once in a month and submitted to the

managing director for his reference. The managing director scrutinizes the above

reports and passes any orders or corrections to be made. Later, the finance

manager and the assistant finance manager execute his orders.

LOANS & ADVANCES:

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Uniworth industry gives advances to its employees but there is no loans.

If the employee applies for any advance, the managing director sanctions the

application for advance and provides the employee with the cash that is required.

The repayment of advances is made through the installment schemes.

Generally, the cash should be repaid in 10 monthly installments. The number of

monthly installments is not that fixed. It is subject to flexibility.

TAXES & DUTIES:

The company pays two kinds of taxes. They are:

a) Income tax

b) Sales tax

The income tax is paid only once in a year. But, the sales tax is paid ever

month. The taxes are paid regularly. The income tax is paid in the month of

March and the sales tax is paid on the 20th of every month. A period of one month

is given as a credit period.

The finance manager looks after all the activities. He brings to the notice

of the managing director, if some payments are to be made for the purpose of any

taxes or duties or any such expenses. The managing director passes the required

orders. The finance manager and the assistant finance manager executes the

orders of the managing director.

SOURCES OF FINANCE:

The company issues neither shares nor debentures to both the general

public and the employees of the company. So, the company is dependant on the

fixed deposits, bank loans and the current deposits.

PERSONNEL DEPARTMENT

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The personnel department is the department that works for the welfare of

the employees. This department helps the company to solve the problems that are

likely to arise between the management and the employees. Personnel department

maintains separate files for all the employees. The personnel manager is

responsible for all the activities of the personnel department.

Types of workers:

There are about 500 workers who are working for the company. There are

3 types of workers who work for the company. They are:

a) Staffs or employees

b) Contractors

c) Workers.

a) Staffs:

The staffs or the employees are the people who belong to the highest

grade. Their work is confined to the office and they do not go to the production

area at all. The pay scale of these employees is high than the workers. The

managers, assistant managers, supervisors belong to this category. Generally,

these people will hold a post graduate degree in the management field. They will

have no knowledge in the production side.

The service manager and the production manager is an exception to this

general rule as they are concerned about the production process and mechanical

side of the grinders.

b) CONTRACTORS:

These contractors are working for the company from the time of

incorporation. They are well known to the company. These contractors employ

the workers. He is in charge for their pay and other problems regarded with them.

They are also paid well, but not to the level of the staffs.

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c)WORKERS:

The workers are the people who belong to the lowest grade. Their pay

scale is very low when compared to the other 2 group of workers.

The workers have not met any serious problems till today, as the

managing director understands their problems. At the same time, these workers

also understand their managing director’s problems. There is a cordial

relationship between them. So, there is no labour union in the company. Any

labour can approach the managing director with regard to his problems. The

managing director gives a ear to their problems.

TRAINING PROGRAMMMES:

Need for the training programs:

1) To update the general knowledge of the employees

2) To promote the personnel to a higher caliber

3) To provide the employees an in-depth knowledge about the prevailing

working conditions.

4) To re-orient individuals

5) To motivate the employees

STAFF TRAINING:

The systematic performance appraisal method will bring out the training needs.

a) To change the weaknesses into strength.

b) To improve any deficiency spotted

c) To make them fit for higher responsibilities

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d) To enable job rotation.

WORKERS TRAINING:

They have a policy to give multiple job training to all their workers,

especially to the youngsters to enable job rotation. The assistant manager of the

personnel department works out a plan and lays a budget during the month of

March every year. The assistant personnel manager also gets the plan approved

by the manager and the managing director.

VARIOUS TRAINING PROGRAMMES:

The employees are given training in the field of computers. This was done

to enable their personnel to manage all their transactions by the computers.

Apart from this, the employees were sent to learn the first aid. The first

aid training is very essential for the employees because if at all an accident

occurs, in the company, they should be able to perform atleast the first aid

activities.

Functions of the personnel department:

1) Man power plan and recruitment:

The managing director along with a few other personnel plans for the

future. They assess the man power required based on the production plan and the

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expected resignation for that year. They invite applications through the famous

journals. They sometimes conduct campus interview also.

2) Selection:

Selection is considered to be a negative process in the process of

appointing the personnel. If, the company requires a person for the finance

department, then the person will be expected to have atleast post graduate degree

in the accounting field. If they are selecting a person for the internal auditor or

his assistant, then the person will be expected to hold a degree of chartered

accountancy. The requirement for each post will vary. So, the interviewer will

check whether the applicant satisfies their needs. The applicant should be

capable. The company conducts an interview, group discussion and a written test

for the purpose of selection. Only, when the applicant gets through all the above

tests, he or she will be placed in the company. The sincerity, general morale of

the employee will also be taken into consideration.

3) Placement:

After the selection process is over, the candidate is given placement. He

will be given some general information about the company, its working, the rules

and regulations of the company. If the appointed personnel needs little more

training, he will be given proper training in his field by the trainer. The trained

personnel will be able to perform well after his training. After sometime, if there

is room for promotion, the person will be promoted.

4) Attendance register:

The attendance register is maintained by the watchman. As and when the

employee enters the company, he will be asked to sign in the attendance register

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that is kept in the watchman’s cabin. The attendance register will have the

following particulars:

a) Employee number

b) Employee name

c) Time in

d) Time out

e) Hours worked

The attendance register acts as a proof for the employees’ attendance. This

register has the watchman’s details also.

5) Working hours:

The office working hours is from 9:00 am to 5:00 pm. This timings is

applicable only for the staffs. Their working hours are confined to this table. The

working hours of the workers are likely to vary from day to day. On an average,

the company manufactures around 50 grinders per day. This is their normal work

load. Sometimes this work load may change according to the requirement of the

dealers. At such a time, the workers will be asked to stay back and work for the

company. The company will pay the employees for the over time also.

6) Holidays:

Generally, the company does not work on Sundays. The company works

on Saturdays also. The employees work for 48 hours per week. Apart from the

government holidays, they are given casual leaves and medical leaves.

The employees are given a cup of coffee in the mornings and a cup of tea in

the evenings. Apart from this, the employees do not enjoy any sort of recreations.

7) General Pay Structure:

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The basic pay structure of the employees is like this:

Basic pay

+ Annual increment in wages and salaries

+ Dearness allowance

+ Leave wages

+ Travelling allowances

+ Medical allowances

- deductions

(Provident fund + ESI)

The provident fund is maintained at 8.33% and the ESI is maintained at 1.25%.

8) Workers of the production department:

The workers who work in the production department belong to the lowest

grade of the working group. There are about 250 workers working in the

manufacturing area alone. These workers receive the lowest pay when compared

to the other employees.

9) Working hours of workers:

The working hours of these workers are 9:00 am to 5:00 pm. These

workers have to manufacture 50 grinders per day. This is the normal work

allotment. When the dealers require more grinders, their work load is likely to

increase or vary. If they are unable to complete the allotted work in their working

hours, then they will have to stay back and complete the work. Mostly they will

be able to complete their work, so they need not stay back.

10) Employees of the production department:

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This kind of workers belongs to the higher grade of workers. Their pay

scale is higher than the workers who work in the production area. The manager,

assistant manager, and the supervisors belong to this category.

11) Working hours of employees:

The working hours of these employees are fixed to the office hours. They

do not have any overtime jobs. So, they need not stay back and work. They look

after the management part of the production department.

The production manager maintains the various records and documents of

the production department. The assistant manager assists the production manager

in his job. The supervisors are the people who go around the production area and

inspect the work of the workers.

12) Books maintained:

The important books that are maintained in the production department are

the production register and the outgoing register.

13) Productions register:

The productions register contains the following particulars:

a) Serial no

b) Item code

c) Name of the product

d) Production cost

e) Important expenses

f) Spare parts used

g) Work accomplished

h) Pending work

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This register is maintained by the production manager. All the

information regarding the production area and the job is got from the supervisors.

The supervisors help the manager to update this record. This is very useful to

check the work that is pending at any given time.

14) Outgoing register:

The following information can be got from this register:

a) No. of product manufactured

b) Type of the product

c) Item code

d) Price

e) Signature of the manager.

The above information is updated by the manager as and when the need arises

(i.e.) when a load is sent out of the production department.

15) Rules & Regulations:

a) The prime responsibility of each employee and worker is to be loyal to the

company.

b) They should be sincere in their work.

c) They are supposed to report to the managing director whenever any problem

arises.

d) They are expected to be in the company at 9:00 am sharp.

f) The workers who work in the production unit are supposed to wear neatly

ironed khakhi uniform.

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CONCLUSION

The training that I undertook in uniworth limited is very useful for me. I

was given an opportunity to expose myself to the various departments of the

company. Apart from the theoretical knowledge that I gain from my academic

studies, I have gained a sound practical knowledge. This training has helped me a

lot. The institutional training has given us useful hints, which will be of immense

value in our future career. This training is a refreshing feature and has given us a

break from lectures.

Finally we wish to thank each and every person who assisted us to complete

the training is a must which will lend credibility to the subject.

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