Institutional Training

Institutional Training

Done At

Santha Industrials

Submitted by B. Naga Santhosh 05BBM531

Acknowledgement

Acknowledgement I thank the principal, Mrs. Sheela, for including such a useful training program in our curriculum. Through this training, I was able to gain a sound knowledge in the field of management in a practical manner. I also thank the Head of the Department, Mr. S. Gopalakrishnan MA., MBA. Without whom this training would have been impossible. I thank Mrs. Radhika, under whose coordination; I was able to complete this training. They have guided me throughout this training. I offer my sincere thanks to Mr. Duraiswamy, the managing director of Santha Industrials for allowing me to do this training at his organization. I also, offer my thanks to Mr. P.L.G. Krishnan, the training officer and Mrs. Thamaraiselvi, for helping me to complete this training report. They have provided me with useful information about their company. I thank them for spending their precious time for my training.

Contents

Contents Acknowledgement Certificate 1. Introduction to the company 1.1 History 1.2 Introduction 1.3 Product profile 1.4 General Information 1.5 Organisational layout and chart 1.6 Departments in the organization 2. Several Departments 2.1 Production Department 2.2 Purchase Department 2.3 Quality Control Department 2.4 Marketing and despatch Department 2.5 Service Department 2.6 Personnel Department 2.7 Finance Department 3. Conclusion

Introduction

Introduction History of the organisation: 1964

The company was started. (To produce pumps)

1973

The company started to produce conventional type of wet Grinders.

1980

The company invented the tilting wet grinders and started manufacturing them. The company also got the patent right for a period of 10 years or so.

2000

The company started to manufacture Home Flour Mill.

2004

The organization started manufacturing mixie.

2004

The company started to distribute the Electric chimney.

When the company was started in 1964, it was a partnership firm with 4 partners. Later, in 1970, 3 partners resigned. So the partnership firm was diluted and the company became a sole trading company. The chairman of the company is Mr. Chandra. Introduction: This is a training done to know the management of various departments of a popularly known tilting wet grinder company, Santha Industrials. Santha Industrials was incorporated in 1964 as a partnership firm. It enjoyed a patent right for tilting wet grinders for a period of 10 years. It was a market leader until it had its patent right. Later, many companies started to manufacture tilting wet grinders. So, it lost its market leadership. Now it has got a few competitors. now it has lost its monopoly.

Santha Industrials aims at giving quality products at a cheaper rate. Even now it has a considerable amount of market share of 60%. It is because of its quality and goodwill. It also manufactures tabletop grinders and home flour mill. These products were also successful but not alike tilting wet grinders. It also provides a few extra attachments. Product Profile: Santha Industrials, keeping pace with the trend has introduced a few special attachments. Some of them are: 1. Dry grinding 2. Kneader 3. Churner 4. Coconut Grater 5. Citrus Juicer Preparing beaten rice, extracting coconut and soya bean milk, husking, preparing rava from wheat are within easy reach now. The rotation of the grinder stone or the speed of the grinder is moderate, so the edible items that are ground in the grinder does not get heated. Therefore the micronutrients in the food are retained and the food lasts longer unlike the other high speed grinders. When the appliance produces heat, it will be passed on to the food that is ground also. So the nutrients are depleted. The roller stone crushes, mixes, pounds and grinds simultaneously. So the grains are ground equally. It also improves the taste of the food. The grinder is designed for continuous working. It lessens the burden of the house hold people and makes the job more interesting. Tilting Wet Grinders: 1. Available in different sizes. 2. Reduces grinding time. 3. Less power consumption. 4. Convenient for both house wives and working women. 5. Economical. 6. Stone components are made from best quality black granite and will not get chipped out or break during operation.

7. Has the highest Motor Rating in its class of grinders in the markets, prevents from overheating even under long and heavy use. 8. Roller stone need not be removed to collect the ground material. 9. Ground paste can be removed even while the grinder is in operation. 10. Can be used for a wide variety of wet grinding applications even for preparation of chutneys and masalas. Technical Specifications: Capacity 1 1/4 Ltr. 2 Ltr. 3 Ltr. 5 Ltr.

Motor 1/4 HP 1/4 HP 1/2 HP 1 HP

Weight 20 Kgs 26 Kgs 42 Kgs 65 Kgs

RPM 1425 1425 1425 1425

Voltage 230 230 230 230

Price 4400 4990 7500 18000

Home Flour Mill: It is ideal for dry grinding of wheat, dried rice, ragi, pulse, dry masalas, soya bean flour, rava, maize to the consistency that you want with more ease. Apart from the above mentioned, corn, rice, bajra, black gram, green gram, sugar, coffee bean, coriander, pepper, channa dhal, maize and curry bean also can be powdered. All the above features of the tilting wet grinder is applicable to the home flour mill also. Price - Rs. 10500/- [2 Kg] Table Top Grinder: The table top grinder can also perform all the jobs of the tilting wet grinder. The table top grinders are more convenient than the tilting wet grinders. As it can be kept on the table or on the cooking range it can be easily operated. The features that are listed above for the tilting wet grinder is applicable for the table top grinder also. Price - Rs. 4650/- [2 Ltr.]

Maestro Table Top Wet Grinder: Technical Specifications: Model : Table top Capacity : 1.5 Ltr (2 Ltr optional) Voltage : 220 V (110 V optional) Motor : 1/6 hp Weight : 14 Kgs (approx.) RPM : 960 RPM Guarantee: 1 year Mixer Grinder: Technical Specification: Voltage Motor No Load Speed Overload Protector Wire cord Warranty

: 220 volts AC 50 Hz : 550 Watts universal type : 18000 RPM : 2.2 Amps (resettable) : 2 meters with 5 Amps, 3 pin plug : 1 year

Also available with 110 V / 60 Hz.

General Information Name of the MD

: Mr. D. Chandra

Capital Invested

: Rs. 60,000 [in 1964] Rs. 50,00,000 [at present]

Current Sales

: Rs.4,00,00,000

Price per Grinder

: Rs. 4400 [lowest level of tilting grinder] Rs. 6500 [home flour mill] Rs. 5100 [table top grinder]

Branches

: 1. Mangalore 2. Bangalore 3. Mumbai 4. Vijayawada 5. Hyderabad 6. Ernakulam 7. Chennai

Export

: 1. Switzerland 2. Sri lanka 3. U.S.A 4. Australia

Major Competitors

: 1. Elgi Ultra 2. Sowbaghya 3. Amirtha 4. Laxmi 5. Surya wet grinders

Income Tax

: 30% 12% surcharge

Excise Duty

: 16%

Annual turn over

: Rs. 4,00,00,000/-

Major Dealers

: 1. S R Agencies - Chennai 2. Krishna Enterprises - Kalacheri 3. Lakshmi Enterprises - Karaikal 4. Market Traders - Coimbatore 5. Sun Business - Calicut

Major Suppliers

: 1. Kovai Seenu & Co. - Coimbatore 2. Ecolite Wire Pvt. Ltd. - Hyderabad 3. Golden Stampings Pvt. Ltd. - Erode 4. Jayaram Enterprises - Coimbatore

Various Departments To share the work and perform the jobs efficiently, the management has 7 departments. They are: 1. Production department 2. Purchase and Stores department 3. Quality control section 4. Marketing and despatch department 5. Service department 6. Personnel department 7. Finance department 1. Production Department: The tilting wet grinders, home flour mill, table top grinders are manufactured in this department. The 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. 2. Purchase and 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 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. 3. Quality Control Section: 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 a goodwill and to occupy a space in the good books of the customers as it helps the company to manufacture the best quality products.

4. 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. 5. Service Department: Service department is nothing else than a department that takes in charge of the after sales service. Santha Industrials has a separate section to look after the servicing jobs. The service manager takes care of the functions of this department. 6. Personnel Department: In this department, the employee welfare activities are undertaken to satisfy the needs of the employees. This department deals with the various problems faced by the employees in their day to day work environment. The personnel manager looks after the various functions of the personnel department. 7. Finance Department: 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.

Production Department

Production Department Santha Industrials manufactures five products that will reduce the work of the house hold women. They are: 1. Tilting Wet grinders 2. Home Flour Mill 3. Table Top Grinder. 4. Mixer grinder 5. Maestro table top wet grinder The motor that is fixed in the above products are the same. Some of the major raw materials used in the manufacture of these home appliances are: 1. Granite stones 2. Bearings 3. Metal Stand (pipe) 4. Drum 5. Fibre Glass Materials 6. Thinner 7. Copper wire 8. Plastic Components (switches) 9. Stainless Steel Rods (bed of the grinder) 10. Stampings (of the stator) 11. Blades Production Process: Motor Assembly: Making of Stator: Santha Industrials buys the stampings from the Golden Stampings Pvt. Ltd. and press it using a hydraulic press and weld the corners of the stampings till they get the required size of 1.5 inch. Usually they press around 169 stampings to get the required size. There will be slots in the inner side of the stampings for the film paper to be inserted. There are three sizes (3mm, 5mm, 7mm ) of film paper

available in the market, but generally the 5mm film paper is used for the motors. Then the coil winding is done. Coil winding: In this step, the workers wind the coil according to the size of the stator. There are two types of coils. They are the running coil and the starting coil. The coil is wound 120/100/40 times. The wound coil is fixed in the stator in 1-4, 1-6, 1-8 sequence. Then one more layer of film paper is fixed in such a way that the coil is totally covered inside the film paper. The quality of the motor depends on the quality of the film paper. Making of Rotor: The shaft is kept inside the rotor. The stampings of a different shape is used to get the rotor. Then it is pressed in the hydraulic press and then it is welded. Now the rotor is ready. Making of the shaft: A steel rod of 123mm and then sent into the lathe to bring the rod to the shape of the shaft. The diameter of the shaft is not uniform throughout the body because various provisions are provided to fix the fan, pulley, etc. The shaft is ground in such a way that it can be fitted inside the rotor. Two stators are produced and the rotor is fixed inside the stator along with the motor shaft. The stator acts as the north pole and the rotor acts as the south pole. The rotor is ground so that it can be fitted inside the stator. All these stampings are made out of mild steel. Cover: These covers are made out of cast iron material. There are 2 types of covers. They are: 1.Front cover 2. Back cover. The back cover has 4 small holes in it, which are parallel and 4 big holes in each direction. In the small holes thread cut is done by using

a threading machine. There is a small bush in the side which has a red colour bush is present. The switch wire, running wire and two phase wires are made to come out from the bush. There are 4 big holes, 2 bed holes, 2 bearing holes and 2 bush holes which drilled by using a drilling machine. By using the threading machine thread cuts are made on the two bed holes and in the bearing cup. Motor assembly: The varnish is applied to the stator along with the running coil and starting coil and heated for 2 hours in the oven. The centrifugal switch is fixed in the front cover by using a screw. The soldering paste is applied to the centrifugal switch and then soldered. The paste is applied to make the soldering work easily and quickly. The wire is fixed to both the sides of the centrifugal switch by using the soldering lead. Required wires are fixed to the front cover. The stator is fixed to the front cover and the wires are made to come out of the side bush. The back cover is fixed over the stator and the centrifugal switch is fixed. The grease is applied over the back cover and then the bearing cup is fixed by using the pressing machine. Four wires are made to come out of the side bush. Among these, two wires are for the capacitor, one for the running wire and the other is for the switch wire. A clamp is fixed over the capacitor using a screw. Then, the studs are inserted inside the big holes of the front cover and back cover and they are tightened by a screw and nut. A black colour paint is applied to the motor and it is sent for the testing.

Tilting wet grinder assembly: Parts: a) b) c) d) e) f)

Motor Bed Belt Pedestal Rolling stone Pulley g) Fibre glass case h) Clamps i) Washer j) S-stand k) Top cover l) Bottom stone m) Spring n) Cup o) Screws, nuts The shaft is kept at the middle of the bottom stone. The plastic pulley is fixed to the stone by using 3 washers and 3 nuts. The haralditol and aralditol paste is applied to the sides of the pulley and pressed in the hydraulic press. Then it is sent to the fitting table for further proceedings. Using a marking gauge, it is centered and it is hammered to fix it properly. The motor is fixed to the bed by using two nuts. Then the fibre glass case is kept over it. The side bushes are fixed tightly to the bed. The clamp is fixed and hammered. The stand is fixed. The motor wire is attached to the switch wire. The other wire is for the earth. This is done to avoid the electricity shock. After this, the safety switch is fixed. On top of the motor the cooling fan is fixed to reduce the heat produced by the motor. The top cover made up of ABS plastic is fixed. The knob that is used to tilt the grinder is fixed. Below the bed the pedestal is fixed with 2 parallel washers. The belt is wound up properly. The basin is kept above the belt. The nut

that is at the bottom is tightened. The motor is fixed. The motor will transmit power and transfer it to the shaft and the shaft in turn passes it on to the granite stone that rotates and grinds the grains. A gasket is fixed at the bottom of the basin to prevent the water from getting inside the machine. The bottom plate is fixed by using 6 screws. Now, the major portion of the grinder assembly is over. The rolling stone is fixed and the stapper rod is placed over it. The screw is placed and it is tightened by the nut and then the cup is placed to cover this nut. Now the grinder is sent for testing. When the grinder is working properly, it is sent to the despatch department. To attach the extra attachments, simply replace the rolling stone with the kneader. The other extra attachments are the coconut scraper, citrus juicer, dry grinding attachments. Home flour mill assembly: Parts: a) Mild steel metal body b) Top stone c) Bottom stone d) Bearing e) Shaft f)Adjustable lever nut g) Clamp h) Adjustable ring i)Stainless steel feeder bowl j)Top cover k) Base unit l)Slotted drive wheel m) Pulley n) Feeder unit o) Belt The motor is fitted to the base unit by using the required number of screws and nuts. Then the shaft is attached to the base unit. The bottom grinding stone is fixed by applying a paste and pressing it in a hydraulic press. The top grinder stone along with the feeder unit is

fixed to the bottom grinding stone. A slotted drive wheel is fixed and the top cover is also placed. The adjustable lever nut is screwed up to the top cover. The stainless steel feeder bowl is fixed. The dry grains can be fed inside the machine through the feeder bowl. When the home flour mill works, the machine takes in the grains and powders it. The adjustable lever nut is tightened to get atta and loosened to get rava. The home flour mill saves the precious time of both the household women and the working women. The quality is better than the products that are purchased from the markets. It consumes less amount of power, so the electricity is saved. The home flour mill can be used to powder almost all the grains, like rice, wheat, pulses, corn, coffee beans, pepper, channa dhal and other dhal varieties. Table top grinder and Maestro assembly: Parts: a) Motor b) Belt c) Bed d) Fibre glass body e) Granite stone f) Rolling stone g) Centrifugal switch h) Motor cooling fan i) Bottom bush j) Basin k) Shaft l) Bottom cover m) Top cover n) Teflon washer o) Drum lid In the bottom plate, the l-angle is fixed at both the ends to give support to the motor. 4 studs are inserted, over which the motor is fixed. The motor clamps are inserted to inside the studs. The

washer is put and the studs are tightened. The bottom plate condenser clamp is fixed by using two screws in which the capacitor is placed. The switch is fitted to one end of the bottom plate. At one end of the motor, pulley is fixed. The shaft is also fixed and tightened by using nuts and screws. To the wheel or the pulley bearing the roller shaft is fixed by using the pressing machine. The pedestal is fixed by using a screw. The cooling fan is hammered at the top of the motor. The motor has 2 wires out of which one is for the phase and the other is for the neutral. A 3 pin plug is attached. The wiring of the switch is done using the tape. The motor is tested for its working at this stage itself. Then the top cover that is made out of plastic is fixed. The bottom grinding stone is fixed to the basin by applying the paste and pressed in the hydraulic press. This basin is fixed to the base unit along where the motor is fixed. Now, the rolling granite stone is fixed. The stapper rod that is used to mix the paste is also fitted. The spring is fixed and tightened by placing the nut on it. At the top the cup is placed to cover the nut and the spring. Mixer grinder assembly: Parts: a) b) c) d) e) f) g) h) i) j) k) l) m)

n)

Motor Belt Bed Cooling fan Bottom cover Top cover Shaft Teflon washer Centrifugal switch Blades Mixie jars Bottom assembly Poly carbonate lids Handle

The motor is fitted to the base unit by using the required number of screws and nuts. Then the shaft is attached to the base unit. Then the belt is fixed to the motor. The motor wire is attached to the switch wire. The other wire is for the earth. This is done to avoid the electricity shock. After this, the safety switch is fixed. The cooling fan is also fixed to reduce the heat produced by the motor during the working of the mixie. The rubber bushes are fixed to the bottom cover and then the bottom cover and the top cover are fixed to the assembled motor. The handles are fitted to the various jars given along with the mixie. The blades are also fixed inside the jars. The poly carbonate lids are also fixed to the jars. A high power 550 watts motor with Overload Protector is used. Ergonomically designed to withstand the toughest of jobs. Strong and durable ABS body and 3 Stainless steel jars with powder coated aluminium jar base is used. Individual unbreakable poly carbonate lids are provided for all 3 jars. It has high efficiency and removable blades for wet, dry, chutney, mincing and whipping. 3 speed rotary switch with inching provision is also provided.

Purchase Department

Purchase department 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. Distribution of Extraction fans and Chimneys: The purchase department along with the sales department is responsible for the distribution of the extraction fans and the Chimneys. CATA appliances ltd. In a tie- up with CATA Electrodemestico S.L. of Spain was incepted in March 2004 to market CATA Home Appliances in India. Founded in 1947 in Torello, Barcelona, Spain CATA Electrodemestico S.L. has grown by leaps and bounds. Today it has factories in Barcelona, Sao Paulo (Brazil), Xian Lan (China) and has growth to become a global giant with dominating presence in more than 80 countries across the globe. CATA commitment to quality is guaranteed by the highest recognitions like ISO 9001 certification by the BVQI (Bureau Veritas Quality International), C.C.A. (Cenelac Certificate Agreement) for technical regulations and accredited by the Dutch council for Accreditation. These International Standards guarantee the highest level of quality in design and manufacturing.

Models available in extraction fans: 1. X – Mart Matic 2. X – Mart 3. B–10 / B-12 / B-15 Matic 4. B–10, B-12, B-15 Plus 5. B–10 / B-12 / B-15 Models available in Chimneys: 1. C 3000 a) Pyramid b) Clasica c) Creta d) Isolux 2. C 2000 a) Series W b) Series Omega c) Series Q d) Series S e) Series Neblia f) Isla L g) Linea F h) Linea P 3. C1000 a) Linea TF b) Linea I c) Linea S Box Colours available: There are 3 colours available in the Chimneys. They are Black, Copper and White.

Stores Department

Stores Department Documents maintained: • • • • • • •

GRN RGP RMDC MRS MRN BIN CARD DC

GRN: GOODS RECEIVED NOTE. There are three types of GRN. 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. 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. 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. RGP: RETURNABLE GATE PASS. This challan is prepared for the material which has been given to the subcontractors for sample. 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. MRS: MATERIAL REQUISITION SLIP. This slip is prepared by the supervisor and sent to the stores for the requisition of material. 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. 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. 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.

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.

Quality Control Section

Quality Control Section 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. When the motors are manufactured, it is again checked by the quality control personnel for the proper working of the motor. There are some formulae to check the motor. Some of them are: a) Cold resistance = 15.5 at 26 degrees c. b) R 75 = 18.4 c) E = I^2*R75(no load A^2 *75 d) Efficiency = Rotor output / stator input e) Power factor = Stator input / (V*I) f) Product efficiency = Power factor * E g) Slip = Actual Rpm. / Single Rpm. h) Fixed loss = no load watt – E i) Full load loss = full load A^2 *R75 j) Total loss = fixed loss + full load loss k) Rotor input = Stator input – total loss l) Rotor output = (rotor * input * full load Rpm at 50 Hz) / single Rpm When the motor satisfies all the above formulae, the further proceedings like, tilting grinder assembly, home flour mill assembly, table top grinder assembly are done. When the appliance is assembled, again it is taken to the quality control department for checking. Now, the strength of the fibre glass

body, the stand, the clamp and the working of the motor is checked. When all the checking is over, it is sent for packing. Packing is a small process wherein the grinder is packed inside the cardboard sheet. The thermocole is kept besides the grinder to prevent damages that are likely to occur during the transportation. A note is sent to the production department stating that the products were free from flaws. This statement will also state that the products were sent to the despatch department.

Marketing & Despatch Department

Marketing and despatch department The marketing department is looked after by the marketing manager. He is assisted by the assistant manager. The salesmen speak to the customers and make them buy. They are the people who explain the special features of the product and the company. Generally, the direct sales are lesser than the sales through he dealers. Mainly, the marketing activities are done by the marketing assistant manager and the despatch work is looked after by the despatch assistant manager. Records and documents maintained: Some of the important records maintained by the marketing and despatch department are: a) b) c) d)

Delivery challan Outgoing register invoice Other ledger accounts like: a) PLA (personal ledger account ii) RG 23 iii) RG 1 iv) Sales ledger

Delivery challan: The delivery challan is recorded for the purpose of recording the sales volume. This is recorded at the time of the sales. This is prepared to know the following details: a) b) c) d) e)

Serial no. Item code Product name Total amount for which the sales was made Quantity sold (i.e.) the total number of grinders that are sold

f) Price per grinder g) Customer name (i.e.) name of the dealer. Outgoing register: The outgoing register is prepared by the stores department also. That outgoing register is different from the outgoing register that is prepared by the marketing and despatch department. This outgoing register 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 outgoing register is prepared. This is maintained for the reference of the company. Invoice: The invoice is a statement that is prepared at the time of sales. It contains some details like: a) b) c) d) e) f) g) h) i) j) k)

Date Customer name /dealer name Serial no Product name Price per grinder Quantity purchased Total price Cash discount Net price Signature of the dealer / customer Signature of the despatch officer

Personal ledger: a) b) c) d) e)

The personal ledger account has the following particulars: Date Serial no. of entry Description of the document with the name and address of the branch CETH No. EC code of the buyer

f) g) h) i) j)

Credit Debit Balance Basic excise duty Signature of the assessee or his agent

The above particulars are recorded by the marketing and despatch manager. RG 23: The following information is recorded in this document: a) Serial no. b) Date c) CENVAT and additional customs equivalent to CENVAT d) Other duties (if any) e) Invoice no f) EC code of suppliers g) Folio and entry no in Part I h) Debit i) Credit j) Balance k) Central excise officer’s initials l) Remarks (if any) RG 1: The following information is recorded in this document by the manager. a) Date b) Opening balance c) Quantity manufactured d) Total e) Removal from the factory i) on payment duty ii) without payment duty f) closing balance g) total h) remarks i) initials of the assessee or his agent

Marketing strategy: In the past, the company was giving advertisements in the daily journal. Now, the company gives advertisements only in the weekly magazines like Kumudham and Dinakaran’s weekly magazines. The company has an interesting marketing strategy. The company displays its products in the trade fairs that takes place in various important cities in the country. This strategy helps the company a lot in the sales promotion. The sales volume gets increased to a higher extent because of these stalls in the trade fairs. They also have some painted displays on the road dividers in front of their company. As the company is situated on a national highway, the company is familiar among the general public. This also serves as a means of advertisement. This also helps to increase the sales volume. Market condition: Generally, all kinds of business are dull. Santha industrials is no exception. Santha industrials has lost its market share in these recent years with the emerging of new companies. Till it had its patent right, Santha was the market leader for tilting grinders. Later, almost all the companies started manufacturing tilting grinders that are very convenient for the house hold women. So, it has lost its market share. Now, the personnel of the company are trying to increase the sales volume and become the market leader once more. Now, the company has started to regain its market. The marketing department is very serious about this problem. They very often held meetings with the managing director to solve this problem. The market is neither very dull nor very bright. The market condition is normal. Major dealers: The major dealer of Santha Industrials are the Mangalore branch of Santha and The Chezhiyan enterprises - Goa. Few other major dealers are:

a) b) c) d)

S. R. Agencies Madras Krishna enterprises - Kalacheri Lakshmi enterprises - karaikal Market traders - Coimbatore

Exports and imports: Santha industrials does not import any products or raw materials but exports its finished products to a number of foreign countries. Some of the major exports are done to United States of America, Switzerland, Dubai, Australia, Hong Kong, etc. As all the required raw materials are available in India itself, they do not import any products from the foreign countries. There is a good demand in the foreign countries, so they export their products. Santha industrials serve our nation by exporting goods to foreign countries as it improves the country’s foreign exchange. Functions: 1) Marketing department lends commercial support to all the zonal offices. 2) It also lends technical support. 3) It helps in making quotations 4) It prepares marketing analysis and strategies eg. Break even analysis 5) It helps in exploring new markets for the products 6) It undertakes order placement 7) Marketing department has to have a touch with the following departments. a) production department b) finance department c) service department Types of sales: The sales are of two types. They are: a) Direct sales b) Sales through dealers

Direct sales are taken over by the company. The marketing and despatch department salesmen are responsible for this kind of sales. When a customer arrives, the sales personnel is supposed to explain the special features of the product and quality of the product. He is supposed to convince the customer and make him buy the product. The salesmen should be able to identify the attitude of the customer. The second type of sales is done through the dealers. The company sells the grinders to their dealers for the dealership rate. The company sells about 25 to 50 grinders at a time. The dealers also advertise about their products and sell the products. Generally in this kind of sales, credit sales is done. The credit period allowed to the dealers is around 30 to 60 days. If the dealers make the payment before the expiry of the credit period, the dealers avail a discount of around 3 to 5% of the total sales volume. Some times cash sales is also done. At the time of cash sales, the company provides cash discount. The packed products from the production department are brought to the despatch department. Later, the despatch department completes the full packing and sends it to the warehouse. When a grinder is sold, the workers of the despatch department, get the grinder from the warehouse, and send it to the dealer’s warehouse or to the customer’s residence. The carriage outwards is done by the despatch department. The marketing and despatch department maintains a cordial relationship with their dealers and customers. Even this aspect attracts the customers, which in turn helps the company to increase its sales turn over. As, the Coimbatore office is the head office, it has to maintain a good relationship with the other branches also. More than that, this is the only production unit. It is this office that supplies the grinders and home flour mills to the other branches that are located in the other states also. Some of the branch offices are located in the following cities: a) Mangalore b) Bangalore

c) d) e) f)

Mumbai Vijayawada Hyderabad Ernakulam

Market research: It is this department, which directly involves itself in the market research. Market research includes the surveys that are made to know the consumer satisfaction, consumer needs, etc. The market research helps the company in further development of the production. It helps the company to implement new ideas and various strategies in production. So, it helps the company to improve in terms of better quality and other technological improvements.

Service Department

Service department The service department is about the after sale service. The grinders and home flour mills come out to the market with a warranty period of 1year. If there is any problem within this one year warranty period, the company will replace the spare part. If the problem is not so severe, the mechanical engineer will repair the spare part. If there is any problem after the warranty period, the company will charge the customer for the spare parts and for the service. The service department is being looked after by the service manager, who has a sound knowledge about the mechanical side. Apart from this, there is an efficient mechanical engineer. This mechanical engineer will be able to solve all the problems. The manager himself is a mechanical engineer. The manager maintains a record known as repair order book. This is a book which contains all the details of the grinder and the problem in it. Some of the important details are: a) b) c) d) e) f) g) h) i) j)

Date Product name Date of purchase Problem that prevails in the grinder Name of the service personnel Date of delivery Servicing charges Name of the spares changed Cost of the spare parts changed Initials of the service manager

General repairs: Generally, the bearing of the grinder may get worn out. The coil winding of the motor may get worn out. There is no technical fault present in this. These problems are due to continuous working and

wear and tear or due to rough handling. After a period of ten years, the rolling stone may loose its sharpness. This is not a serious problem. If the customer faces such a problem, he may bring the rolling stone to the service department, where the service personnel will send the stone into the lathe to regain its sharpness. Rough handling may cause serious troubles. To prevent this, the dealers are asked to give a demo to the customers at the time of purchase. The company also provides a free user’s manual along with all the grinders and home flour mills. This department is a very small department, but filled with efficient mechanical engineers who can service the grinders in an effective manner. Generally, almost all the problems are trouble shot within a day or a couple of days. Even the most troublesome problem is cleared off within 4 to 5 days. So the customers are satisfied with the company. The company aims at consumer satisfaction and nothing more than that because the consumer satisfaction is capable of earning a goodwill to the company. The service department is not located within the company premises, but very close to the company. So, the damaged products reach the service department quickly. The service department is located just opposite to the company premises. This nearness helps the repaired products to reach the company very fast. Mostly, the service personnel goes to the customer’s residence and repairs the motors. Only in case of a serious problem, the grinder is taken to the service department. More than everything, the cost that is charged for servicing is much more less than the competitors’ charges. At the same time the quality of work is also high when compared.

Personnel Department

Personnel Department 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. 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. 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. 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 programs: 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) b) c) d) e)

To change the weaknesses into strength. To improve any deficiency spotted To make them fit for higher responsibilities To enable job rotation To avoid labour turn over.

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 programs: 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. They were sent to ANDAL COMPUTERS, an efficient training center. Apart from this, the employees were sent to COIMBATORE PRODUCTIVITY COUNCIL 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: 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 expected resignation for that year. They invite applications through the famous journals. They sometimes conduct campus interview also. 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. 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. 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 that is kept in the watchman’s cabin. The attendance register will have the following particulars: a) b) c) d) e)

Employee number Employee name Time in Time out Hours worked The attendance register acts as a proof for the employees’ attendance. This register has the watchman’s details also. 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. 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. General Pay Structure: 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%. 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. Working hours: 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. Employees of the production department: 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. Working hours: 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. Books maintained: The important books that are maintained in the production department are the production register and the outgoing register. Productions register: The productions register contains the following particulars: b) c) d) e) f)

Serial no Item code Name of the product Production cost Important expenses

g) Spare parts used h) Work accomplished i) Pending work 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. Outgoing register: The following information can be got from this register: a) No. of grinders manufactured b) Type of the grinder 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. 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.

Finance Department

Finance department The finance department is the heart of the company. This department is supposed to be arranging the funds that are required by the company. Accounting year: The Santha industrials 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: 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: Santha industrials 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: a) b) c) d)

The general monthly reports that are prepared are: Total receipts Total payments Outstanding list of debtors 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 and advances: Santha industrials 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 and 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 20 th of every month. A period of one month is given as a credit period. The company pays excise duty for its sales. The company pays about 16% for a grinder. If, the grinder costs Rs.6000/-, then the company is supposed to pay Rs.900/- as the excise duty. 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. Accounting statements maintained by the company: The following accounting statements are maintained by the accountants of the finance department: a) Journal b) Ledger c) Purchases book d) Sales book e) Bank reconciliation statement f) Cash book g) Trial balance h) Trading account i) Profit and loss account j) Balance sheet. k) Party wise receipts and payments account l) Outstanding debtors and creditors m) Cash flow n) Fund flow o) Of take report

The above listed are a few accounting statements that are maintained by the company. 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. The company has an account with the State bank of India and the Indian bank. The company gets loans and advances from the banks. The rate of interest for their deposits is charged at 12% and the rate of interest for the loans is 12.75% Utilisation of resources: The company utilises its resources by purchasing assets like machineries, computers, vehicles that are used for transportation, etc. Apart from this they put their cash in the rotation to get a profit out of the available cash. The company also acquires investments in some well established companies. Depreciation: Depreciation is an important factor that should be taken into consideration while preparing the accounting statements. The company provides depreciation for all the assets like fixed assets, tangible and intangible assets. The company follows the straight line method of depreciation for the machinery and the WDV method for the remaining assets. There is no arrear in the depreciation that is to be provided. Rate of depreciation: 1. Machinery 25% 2. Computers 60% 3. Car 20% 4. transportation vehicles 20% 5. Furniture and building 10%

Conclusion

Conclusion The training that I undertook in Santha industrials 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.