Summer Training Report on Nakoda Ltd

Summer Training Report on Nakoda Ltd.

Cheriyan Sanup Simon

MBA, Sem-III, Section- A

Batch 2008-2010

.

Department of Business and Industrial Management,

VNSGU, Surat.

CERTIFICATE

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This is to certify that Cheriyan Sanup Simon, a student of M.B.A. part-II,

has successfully completed his summer training at Nakoda Limited, Karanj

as a part of partial fulfillment of the degree of Master of Business

Administration, full time program at Department Of Business And Industrial

Management, Veer Narmad South Gujarat University, 3rd semester during

the academic year 2009-2010.

I am satisfied with his work and send it for further evaluation.

Date: ________________

Place: _______________

____________________ ____________________

Prof. Jaydip Chaudhari Dr. Renuka Garg

Project Guide Head of the Department

(DBIM)

LGAcknowledgement

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Sincere efforts, hard work and proper time management have been the key behind the

completion of this training program. However “Every project big or small, is successful largely due to

the efforts of a number of Wonderful people, who have always given their valuable advice or helping

hand. I sincerely appreciate the inspiration, support and efforts of all who directly or indirectly

contributed to this work and making it a success”. It is needless to say that the completion of this

training was not possible without the co-operation of all the people of Nakoda Ltd, Karanj, and my

college Department of Business and Industrial Management.

First of all I will like to thank my college for providing us training as a part of our curricular

activities; this has given me a tremendous opportunity to be a part of Nakoda family, as a trainee. I

will like to thank my mentor of our college Mr. Jaydeep Chaudhary sir for his valuable guidelines.

Undergoing training in this Manufacturing Company would not have been possible without the

continuous help and captive inputs of all the company employees, I will like to thank Mr. N.K

Sharma Sir, Head of Department, HR for allowing and guiding me throughout the training period. I

am grateful to all the Head of Departments like Production, Quality Control, Purchase, Dispatch,

Stores, Packaging, Power Plant, Electrical Department, for their valuable contributions, to whom I am

highly indebted for guiding and instructing me through out the entire report. I humbly place on record

my feelings and deep sense of gratitude towards them.

I acknowledge my gratitude towards all those who have directly or indirectly provided me the timely

help and encouraged me through out the course of this work.

Cheriayn Sanup Simon

EXECUTIVE SUMMARYNakoda limited is one of one of the largest manufacturers of fully drawn yarn in India. Nakoda has its

manufacturing plants in Karanj where I took the training.

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It has its own Natural Gas based 6.2 MW Captive Power Plant which provides and assures continues

power supply to the plant.

It has a dedicated chemical laboratory to ensure continuous improvement in the quality of the finished

products. Chemical lab is equipped with latest technology machine like Dynafil-M.

State of the art laboratory carry out tests from raw material and the finished products each batch of the

finished product is tested for quality and consistency. It has its own waste disposal unit; here the

affluent is treated before it is released hence avoiding contamination and hence satisfying its

commitment for cleaner and greener environment.

Nakoda Ltd follows well defined HR policies like yearly based Performance Appraisal system,

Recruitment and induction process, Maintenance of individual employee files etc. It has its marketing

offices in Surat.

Its well equipped and latest technological sound quality control and physical labs ensures a quality

product to its customers. A well managed stores department equipped with MMS(Material

Management System) software helps the management of the stores properly and effectively. Its

Manufacturing Excellence department ensures a continuous improvement of the product quality and

lowering of the production cost, and maintenance of the cleanliness, and systematic arrangement of

the things so that the things could be found out easily even by a new or unknown person.

SUBJECT INDEX

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Sr. No. Subject Page No.

01. Introduction

02. HR Department

03. Marketing Department

04. Finance Department

05. Production Department

06. Quality Control Department

07. Stores Department

08. Power Plant

INTRODUCTION

The Company was incorporated as a Private Limited Company on 13th August 1984 under the name

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of Nakoda Textile Industries Private Limited. It became a deemed Public Limited Company by virtue

of Sec. 43A of Companies Act 1956 on 17th August 1989. By means of resolution passed by

company in annual general meeting held on 16th September 1991, company was converted into

Public Limited Company. The Company was engaged in trading of yarn for year since incorporation

and established its own texturising plant at Silvassa in the Union Territory of Dadra & Nagar Haveli

in February 1986. It was engaged in processing of Polyester Yarn like Texturising & Twisting. Its

license capacity & installed capacity of Texturising was 708 M.T. and Twisting was 525 M.T. in

1991. The Texturising capacity was then expanded to 2658 M.T. by adding new texturising machines.

The expansion plant was setup at village Karanj. The company embarked upon integrated plan of

POY spinning with an installed capacity of 6000 MTPA, initially. POY spinning lines along with

other machineries were erected at the site and commercial production commenced in March 1997.

The company then discontinued trading activity in grey cloth. Gradually, POY capacity was enhanced

to 12500 MTPA by installation of balancing equipments, increasing productivity, introducing cost

control and developing capabilities of human resources.

The Company made its maiden Public issue of Fully Convertible Debentures aggregating to Rs. 600

lacs in the year 1992. A preferential allotment of equity shares aggregating to Rs. 494.50 lacs was

made in the year 1997. With this allotment the total Paid up Equity capital is Rs. 1100 lacs. The

shares are listed at Bombay Stock Exchange (BSE).

In the year 1999 the company was successful in acquiring plant and machineries of Garware Nylons

Ltd. (in Liqn.) Pune. It has enhanced its POY production capacity to 21600 MTPA in the year 2001.

Further company also acquired POY production facilities of Indian Organic Chemicals Ltd., Chennai.

The equipments of same where used at Surat plant for further expansion and to enhance production. In

the year 2004 POY spinning capacity has been expanded to 31000 MTPA.

In the year 2007 company undertook Expansion envisaging addition of 20,000 MTPA of Fully Drawn

Yarn (FDY) to the existing capacity. The FDY plant became fully operational in November 2007.

FDY is expected to improve both, the top and bottom line of the company significantly as FDY is a

more value added product. Unlike POY which has to be texturised before conversion to fabrics. FDY

can be directly used for weaving.

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Nakoda Ltd - Organization vision

Our vision at Nakoda Textile Industries Limited is...

To be most preferred & significant supplier of the products and achieve sustained growth.

The vision will be realized through adopting the following strategy:

Adopting Innovations

Focus on core competence

Product Integration approach

Developing a lean and efficient organization

Organization values

In pursuit of excellence and growth, we shall act as Trustees For Organization Customers, employees,

shareholders and society By:

Continually enhancing value for our customers with quality products and services to meet their

changing needs.

Empowering our employees, encouraging innovation and entrepreneurship in an environment,

which makes work fun.

Steadily building wealth for shareholders.

Contributing to the well being of society and the environment.

We shall make innovation and change a way of life at all times and conduct ourselves with honesty,

fairness, and trust in god.

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Quality policy

Our Quality Policy:

a. Provide products and services to its customers not only meeting but exceeding their require-

ments.

b. Provide opportunities for growth and conductive work environment to its employees.

c. Contribute to environment & society as a responsible social entity.

All the members of the Nakoda Textile group are committed to achieve the above policy.

The implementation of the quality policy is effectively realized through deployment of functional

quality objectives.

Environmental policy

Nakoda Textile is committed to contribute to the well being of the Society and Environment.

We shall continue to improve our environmental performance through,

Complying applicable environmental regulatory and other requirements

Adopting the strategies to prevent generation of pollution.

Effective conservation of energy and natural resources like fossil fuels and water.

Training employees on environment related activity and communicating policy to all employees.

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Health & safety policy:

In our pursuit of excellence and growth we are committed to promote health and safety of employees

and others associated with our operations.

We shall achieve this by:

Implementation and continual improvement of Occupational Health and Safety Management System,

Compliance with the applicable Legal and other requirements, Providing and maintaining safety

facilities, operations and working conditions. Preventing incidents and accidents at Factory premises

by Enhancing awareness, Skills, and competency level of our employees and others to accept

individual responsibility for health and safety at work.

Future Outlook:

Nakoda Textile seeks to further strengthen its leadership in the domestic market. The

company is keen to increase its shares with existing customers and looks forward eagerly to new

business. There is also a major thrust plan to expand the units to various other places and to acquire

polyester manufacturing plants in foreign countries. Nakoda Textile seeks to consistently meet and

exceed the needs and expectations of its quality conscious customers in India.

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Organization Structure

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HR

DEPARTMENT

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HR Vision

"To become "The Most Preferred" employer by empowering our employees and en-

couraging innovation and entrepreneurship in an environment that makes work fun."

HUMAN RESOURCE PLANNINGHUMAN RESOURCE PLANNING

Human Resource Planning is the planning for accomplishing the current and future requirements of

the Personnel according to the organizational needs. HR department General Manager is responsible

for Human Resource Planning

Human Resource Requirement can be satisfied by promotion of the employee or by recruiting the

person of desired skill level. If an employee of the company is capable of handling the job then he/she

is usually promoted to the job and then the vacancy thus generated can again be satisfied by another

capable person

SOURCES OF RECRUITMENT

The sources of recruitment are varying as per the requirement of the personnel. The sources can be

classified into two categories –

Internal Sources – If the requirements are satisfied by the internal sources, then Nakoda Ltd

goes for the Transfer & if found suitable it goes for Promotion.

External Sources – If the requirements can not be fulfilled by the internal sources Nakoda Ltd

goes for External Sources. They are –

Newspapers

Private Consultants.

Gate Recruitment.

Private Contractor.

As per the suitability, the HR department chooses any of the above sources & carries out the process

of Recruitment followed by Induction.

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RECRUITMENT / APPOINTMENT POLICY AND PRINCIPLE

1. While it is the effort of the company to encourage growth of the employees and fill all vacancies

from within, this is not always possible in a growing organization. Where demands for additional

trained manpower Out Strip the availability within the company. In such an event, out-side

recruitment is resorted to the following general guide line will be followed for all levels of’ induction

of the company.

a. All recruitment will be against sanctioned vacancies with prior written approval of the unit

head. At the beginning of each year, each department head will get his organisation chart ap-

proved from the unit head. The organisation chart of his department will state clearly the addi-

tional manpower / replacement required. After the organisation chart has been approved by

M.D. each department head requiring additional manpower / replacement will forward to per-

sonnel department, a manpower requisition indicating in as much details as possible. The rea-

son for the vacancy, the job description of the post, the type of’ the candidate most likely to

meet the needs in terms of qualification, experience etc., the salary level desired and any other

information of help in selection of the right candidate.

b. All recruitment / co-ordination of all levels will be handled by personnel department.

c. Letters of appointment will be signed by the unit head only. No other person is authorized to

sign any appointment letters on behalf of the company.

d. Giving of any assurance verbal or written by any employee except these empowered to do so

by the management will be treated as severe.

e. No employee is authorized to recruit or give a commitment for recruitment (implied or other-

wise).

f. All appointments are subject to the candidate selected being found and remaining medically lit

in accordance with the procedure specified by the company from time to time.

g. All appointments are subject to credentials given by the selected candidates being verified and

reference report being satisfactory. In case any employee gives wrong information or conceals

facts in either the application for employment form or in the subsequent declaration to the

company his employment is liable for termination without any notice or compensation in lieu

thereof.

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h. The company may engage from time to time some of sanctioned strength services of such

fresh graduates technical who on successful completion of their training period may he ab-

sorbed in the company at suitable levels. The terms of employment and benefits facilities

perquisites for such appointments would be as finalized by the management from time to time.

All such appointment would be routed through the personnel department.

i. PROBATION PERIOD

Probation period shall be for six months for all new joiners. At the end of this period if the

service of the new joiner is found to be satisfactory, lie will be confirmed in the services of the

company through a written letter of confirmation. The management has the right to extend or

decrease this period of probation.

2. PAYMENT OF FARE TO CANDIDATES CALLED FOR INTERVIEW

Unless otherwise specified payment of fare to all out station candidates called for an interview will be

made on the following.

GRADE MODE OF TRANSIT

General Manger & above I A.C.

Manager & above II / III AC

Engineer & above I Class

Other staff & worker II Class

No fare will be paid to any candidates from Surat or its surrounding area for interview at Karanj plant.

Higher fare then entitled above may be sanctioned by unit head.

3. APPOINTMENT LETTERS

Candidates who have been selected for employment in the company will be issued a letter of

appointment giving all the terms and conditions of his / her appointment indicating date of joining and

place of posting.

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4. REIMBURSEMENT OF EXPENSES.

The following expenses in connection with joining of duties would be paid.

a. FARE: The officers would be reimbursing actual fare of self and his family by the mode and

class of travel to which he shall be entitled as per T.A. Rules of the company. It will be essen-

tial to produce ticket numbers in case of travel by train and air ticket jackets in case of travel

by air to support the claim mode only for staff member.

b. Packing and freight: The actual expenses incurred on account of packing of house hold goods

and freight charges incurred in transportation, supported by bills would be reimbursed only for

managers and above.

c. The total amount of expenses towards item no. a & b shall be equivalent to one month basic

salary of the employee or actual amount whichever is less. In view of this restriction on the

amount of reimbursement employees would be free to undertake travel by a mode / class of

travel lower than their entitlement as per T.A. Rules so as to compensate for additional ex-

penses if incurred on packing and freight.

- The claim for joining expenses by the employee should be forwarded to the personnel depart-

ment which after verification shall forward it to accounts department for payment.

- No deviation to there rule will be permitted under any circumstances.

- The management reserves the right to amend or alter or to totally abolish this scheme at any

time in future.

- The above facilities are also applicable in case of transfer of employees from one place to an-

other.

- If an employee leaves the job within the period of one year from the date of joining he has to

pay hack the amounts to the company.

JOINING FORMALITIES

Immediately on joining the employee shall complete the following formalities.

1. Submit to P & A department his joining report along with application Form, photocopy of birth

certificate, qualification and previous experience.

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2. Submit form for PF nomination. Form no. 13 in duplicate for transfer of his PF account from

previous concern.

3. Submit details in regard to his / her insurance policies / NSC and other relating documents

including the last pay certificate in regard to tax deducted at source by his previous employer (If any).

TRANSFER POLICY OF EMPLOYEE

LEAVE

All transferred employees shall be allowed special leave for shifting as under:

Leave eligibility

Distance between previous place or Un-married Married

residence and joining place

- Less than 150 km. - 2

- 151 km. to 300 km. 1 3

- 301 km. to 1000 km 2 4

- 1001 km. to above 3 5

- Leave for shifting would he sanctioned by the departmental head.

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PFRRFORMANCE APPRAISAL/ INCREMENT/ PROMOTION

Performance Appraisal

OBJECTIVE:

a. To evaluate performance of all employees in order to create strong bias towards need for

achievement of set goals.

b. To introduce consistent and systematic measure of an individuals performances personality,

potential and weakness.

c. To utilise the strength and correct the weakness of individual employees for better perfor-

mance and all round development.

d. To develop the career plans for individual employees and to identify the training needs re-

quired in line with the company short term and long term goals.

e. To develop a system of reward based on achievement, potential for growth and the commit-

ment of the individual to the company.

Increment / Promotion policy:

The Company reviews all employees for increments / promotions in April of each year.

Personnel department will handle the work related to all categories of employees of the com-

pany.

Performance evaluation rating forms circulated by the personnel department and duly com-

pleted by the apprising officers / department head from the base for determining the increment

levels of individuals.

Promotion and special increment will depend upon performance / achievements of the em-

ployee or if any vacancy falls in respective position.

No promotion / increment can be claimed as a matter of right by any individual.

Increment will normally be considered at the time of annual appraisal, Mid year review will be

on exceptional basis, solely increment will he given only after completion of one year of ser-

vice from the date of joining and there after on the first April of the year.

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GRADE CLASSIFICATION OF MANAGEMENT STAFF

Management staffs in the company are classified in the following grades.

GRADE DESIGNATION

O VP/President

A General Manger

Al Dy General Manager

A2 Asst General Manager

B Sr. Manager

C Manager

D Dy Manager

E Asst. Manager

F Sr. Engineer/ Sr.Officer /Sr. Chemist

G Engineer/Officer/Chemist

H Assi Eng/ Asst.Officer /Asst.Chemist

I Supervisor

J Sr. Assistant

K Jr. Assistant / Assistant

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LEAVE RULES

- This office order shall apply to all categories of employees of the company.

- The category of the employees of the company.

- The leave year for an individual shall he the calendar year.

ELIGIBILITY

The entitlement of leave shall he available to an eligible employee in a year.

LEAVE STAFF WORKER

Privilege 30 Days 18 Days

Casual 06 Days 03 Days

The leave will accrued at the being of the year and will he proportionate for them who join in the

middle of the leave year.

Only permanent employees of the company will be eligible for availing the leave accrued to them.

Employees on probation and trainees would also be eligible for availing casual lease. The quantum of

casual leave to this category of employees would be same as mention above.

SANCTIONING AUTHORITY:

Sanction authority of leave shall be as under:-

Category Recommended by Sanction by

Below the Dept. Head Immediate superior Dept. Head

Departmental head ------ Unit head

Unit head ------ Management

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PROCEDURE OF AVAILMENT

Privilege leave

Privilege leave at the end of a year shall be accumulated up to a maximum of 60 days beyond which

the leave if not availed, can be encashed. The applicant would encash the same at the gross salary.

(Excluding HRA and special allowance) drawn during the previous month in a year. Unavailed

privilege leaves lying to the credit of an employee at the time of resignation/termination of service

shall be encashed at the last gross salary drawn at the rate mention above.

Holidays and off days falling within a leave period will not be included in the total days of leave

taken.

Application for privilege leave shall be made at least 10 days in advance.

Casual leave

Casual leave is intended to be used for urgent personal work at sort notice.

Unavailed casual leave at the end of a year will he lapsed and shall not be accumulated.

Employees will be eligible for taking half-day casual leave also.

GENERAL

Leave cannot be claimed as a matter of’ right and the discretion of grant or refusal of leave lies solely

with management.

Leave record of all employees shall be kept in the personnel department who shall maintain a register

recording day to day leave record of each employee. Application received from the individual

employees shall he kept in the time office.

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LEAVE DURING TOUR

An employee who is on leave, except on account of sickness, during his tour on out station duty in

connection with the business of the company shall not be entitled to drawing traveling allowance for

the period of leave.

Employee on privilege leave, if called back before expiry of his leave for official work, he will

be allowed to & fro journey expenses of the same class which he is entitled to for self.

Restricted expenses requiring special authority:

Expenditure on business entertainment or beyond entitlement of TA rules by employees will

be allowed only with the prior approval of the unit head or JMD. All claims for entertainment

expenses must specify the names of people entertained and their business connection with

company.

Every employee shall book his own ticket except employees in the category of Sr. Manager &

above as their travel booking shall be undertaken on request by Adm. Department. For this

purpose he will be allowed to take reasonable advance from the company on application, in

the prescribed the advance form. All expenditure except travel booking when done by the

company shall initially be met by the employees concerned. The person concerned in particu-

lar shall settle hotel bills in cash directly at the hotel counter.

Every employee must submit an expenses statement on the prescribed form to the company

covering his tour within three days of completing his travel. The statement shall be supported

by relevant voucher for all items.

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LEAVE TRAVEL ASSISTANCE SCHEME

Eligibility:

The scheme will be applicable to all permanent employees of the company who would have

completed a minimum of one-year continuous service and are confirm employees on the date of

commencement of journey.

Every employee shall he eligible for benefit of Leave Travel Assistance once only in each financial

year of’ the company.

Amount of assistance

The amount of assistance available on a yearly basis under the scheme shall he one-month basic

salary.

The basic salary here referred to shall he as at the being of a financial year in which the employee

avails the benefit of the scheme.

The amount shall be further limited to the total fare for each family member by the class! mode of

travel to which employee is entitle as per travel rules of’ the company, this amount shall not exceed

the limit of one month salary as mentioned above.

Procedure

An eligible employee shall be required to submit to the company declaration about permanent

hometown along with name of his/her spouse and dependent children in the form given in Annexure.

This deceleration wills he given one month from the date of appointment in case of new employee to

the personnel department.

The declaration regarding hometown shall ordinarily he treated as final and will be changed only

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under exceptional circumstances at the discretion of unit head. Declaration of home shall be based on

the following criteria.

- The place declared as hometown is the one where the employee had been leaving for some years

prior to joining the service of the company.

- The place where is his/her near relations are residents.

- The place which requires his/her presence at periodic intervals for discharging social obligations.

- The place where the employees owns a residential property.

- An employee will also be entitled to claim full reimbursement of actual cost of travel for him, self

and the member of the family from the normal place of work to any other places in India limited to

the total fare. The amount reimburse in this case shall not exceed the amount payable to the employee

towards reimbursement of fare for his family for normal place of work to his hometown subject to the

over all ceiling of month basic salary.

- Where the hometown of the employee or place of visit is not connected by the usual mode of travel

like Air/Rail, reimbursement will be made of reasonable expenses incurred on road journey.

- An employee or member of his family shall be reimbursed expenses under the scheme only from the

starting point which should be the normal place of work for the employees.

- The leave travel assistance is non-cumulative and will automatically laps on the last day of the

financial year.

Tax liability

- The LTA shall be claimed under income tax act only if an employee goes on a minimum leave of 5

days.

- Any income tax liability arises out of reimbursement of LTA expenses as stated above shall be

entirely to the employees account.

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Group Gratuity Insurance Scheme

All employees of the company who have completed a minimum of live year’s continuous service will

be entitled to gratuity when leaving the services of the company or retirement of otherwise. In case of

death of any employee the above minimum period is not applicable to him.

This amount would be pay able at the rate of 15 days basic salary for every year of service. A month

shall consist of 26 days for this purpose.

Salary for the purpose of gratuity is the last basic salary drawn.

For the purpose of calculating the period of service the following will he considered as part of

the service period. (Probation period, Notice period).

Training period will not he considered for calculation of the gratuity.

For the purpose of calculating of length of service, any period excess of six months will be treated as

one year. However this will not be applicable for calculating the required minimum period of

eligibility i.e. Five years if employee resigns / retires after completion of 4.7 years stay in the

company the period of seven months would not be counted as one year.

Gratuity received by an employee is taxable subject to the laws applicable at that time.

Accounts department will be responsible for disbursement of gratuity; they will get necessary advice

from personnel department on retirement / resignation of an employee.

The gratuity amount would be paid only after clearance has been received from all departments

regarding advances, loans or any other items.

If the executive stages in a company flat or has a company owned vehicles or other assets, the gratuity

may he with held until possession of the same is handed over and all dues related their to cleared.

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The above rules are only guidelines which are subject to modification with any changes in relevant

statute or as the circumstances may necessitate.

SALARY ADVANCE

Granting of salary advance:

The management at any time may sanction a salary advance to an employee to meet the cost of

unforeseen emergency expenses. Such an employee must have completed six months of service

subject to the condition that.

No salary advance shall be granted unless the sanctioning authority is satisfied that the

employees pecuniary circumstances justify and that it will he expended on him or any

person actually dependent him.

No further loan under the scheme will be given unless an employee has completed at

least six months after the repayment of the previous loan.

The total existing deduction per month (including PF, PT and other loan) should not

exceed 50% of the total monthly emolument.

Maximum amount of salary advance:

A salary advance sanction to an employee under these rules shall not exceed three months ba-

sic salary.

The loan so sanctioned to the employee will have to be repaid in 12 equal monthly install-

ments and shall be interest free.

In view of the case flow position loan application may be processed and shall be purely on the

discretion of the management.

Sectioning procedure:

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The employee shall make an application for the salary advance to head (P & A) through departmental

head. The head P & A recommended the same to the sectioning authority i.e. CGM or JMD.

HOUSING DEPOSIT LOAN

Objective:

To help the employee at joining of the company to meet for deposit for the

rented house for their rented accommodation

Coverage:

Level A mount

Sr. Manager & Above Rs 15000/-

Engineers & Above Rs 10000/-

Workers Rs 5000/-

Only permanent employee or have put in at least one month of service will be covered under this

scheme.

The loan shall be repay able in maximum 10 equal monthly installments

Request for loan should be made b the employee to the P & A department through the depart-

mental head

P & A department after verifying the loan application shall put up the case for sanction of the

unit head.

Sanction application would be forwarded to accounts department to shall make the payment

The employee leaving the services of the company before the completion of stipulated 10

months, outstanding balance of the amount as on that date shall be deducted from the amount

payable to him on account of his full and final settlement

The housing deposit loan scheme does not form part of the service condition of the employee

and may be modify or withdrawal by the management at any time aid granting of this loan is

purely discretionary and cannot he claimed as a matter of right.

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No further loan under this scheme will be given to the employee.

TELEPHONE AT RESIDENCE

The company may provide a telephone at the residence of management staff on need basis of work

requirement. The company will bear the following expenses.

All installation/shifting /application charges OYT/ NON OYT category as approved by the

management.

All official trunk — calls charges.

Unless otherwise approved by the management. STD facilities on telephone installed at the residence

will be barred. This is a job link facility and may be withdrawn at any time at the discretion of the

management.

The management may also provide mobile phone as required to their management executive and pay

rental / call charges of the same.

CODE OF CONDUCT

All management staffs arc required to observe code of conduct specified in this chapter. Any violation

of this Code of acts of omission / commission leading to violation of this code will be taken serious

note of by the management and may even affect the individuals’ employment in the company.

Confidential matter:

No management staff shall divulge or use, except in furtherance of the company‘s business

any business or technical information which may come to his knowledge in the course of his

employment in the company

No management staff shall participate in or be associated with any radio / television broadcast

or in any documents / papers published in his name or under an assumed name or in any com-

munication to the press or in public speeches / ultternesses without prior written approval of

the management.

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Members of the management staff except in so far as it may be necessary in the course of their

duties shall not without the prior written consent of the management retain in their pm ate

possession any paper documents specifications, records etc. relating to the companies busi-

ness. Any such material must be return to the company on severance of their services.

No management staff shall acquire any patent right in relation to any products goods to be

manufactured by it or which the company makes or an make in the course of his employment

PRIVATE TRADE/ EMPLOYMENT

Management stalk are whole time employees of the company. No management staff shall, ex-

cept with the prior written permission of the management engage either directly or indirectly

in any trade or business or under take another employment or consultancies or undertake such

trade business/consultancy etc. on behalf of anyone else, either with or without remuneration,

during the course of his employment with the company.

No management staff shall accept any pecuniary advantages or any fees for any work done by

him for any public body / private orgarniation or individual without the written permission of

the management.

PROPOSED CAR SCHEME

Preamble

This scheme is proposed with the background to benefit the Sr.Manager as well as to keep certain

discipline on the maintenance of vehicle.

This scheme is applicable to the Sr.Manager& above who are entitling for financial assistance

for purchase of vehicle.

The Company shall contribute 90% of cost of car and balance 10% shall be born by the con-

cern employee. The company shall collect upfront the amount of 10% cost as interest free de-

posit from the employee and balance 90% of company contribution to be recovered in 36/60

equal installment as interest free loan. The company shall not grant loan to employee to con-

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tribute his own share of cost. ”cost of car” for the purpose shall include registration and insur-

ance charges.

The concern employee shall be eligible to buy Maruti wagon-R Lxi or any equivalent car of

the similar price range without any accessories.

The request shall be moved by unit head for allotment of car under be scheme. Approved of

CMD or JMD is required to buy and allot motor car under the scheme.

The motor car shall remain under the scheme for three/five completed years. At the end of

three/five years time the car shall be transfer to the concern employee at the full price paid by

him.

The car will be register in the name of company.

General

If the employee opts to buy higher model of car, the incremental cost shall be full borne by him.

In the event of employee leaving the organization before completion of three/five years from the date

of allotment of car to him, the car will be transfer to him and company’s contribution will be

recovered from him.

The employee who opt for the scheme shall he required to sign a confirmation to that effect.

The employee shall be taxed on the perquisite value of the vehicle if any under the IT act.

The management reserved the right to amend/after, wholly or partly or to withdraw the above referred

schemes at any time without affecting the cases of executive, who have already opted for the scheme

before the date of amendment/alternation or withdrawals.

MEDICAI EXPENSES REIMBURSEMENT SCHEME

Eligibility:

Each confirmed employee shall be entitled to reimbursement of medical expenses incurred b’ him for

self his/her wife/husband and dependent children.

30

Maximum benefit per year:

Maximum benefit given by the company for each employee and for all eligible persons shall be

restricted to 10% of basic salary, excluding house rent allowance, conveyance allowance, special

allowance or any other salary of what so ever in a financial year form April to March of each year.

Procedure for claiming expenses:

- All claims for medical expenses for a month should be received along with monthly salary by 10th of

a month.

- The employee will submit receipt in respect of expenses and payment of medicals bill incurred by

him while claiming the reimbursement on a prescribed forms once in a year up to 15 March subject to

his entitlement of medical expenses.

General

P & A department would ensure that the amount already paid together with salary, do not exceed the

limit to which the employee is entitled. In case the medical bills submitted by an individual’s

employee is not in conformity with the scheme for reimbursements or is not supported with proper

bill. P & A department shall refer the case to the unit head who shall advise necessary action in the

matter.

Tax liability

Any income tax liability arising out of reimbursement of medical expenses as stated above shall be

entirely to the employees account.

31

GROUP PERSONAL ACCIDENT POLICY

In over Nakoda employees are not covered under ESI act, as the area is not declared by the state

government for coverage under act.

Considering this and with a view to give adequate cover to the employees for any accident arising in

course of employment or out side the factory premises. The company as a matter policy has taken a

group personal accident policy for all the employees. The policy covers all accidents in course of

employment of outside the factory promises.

Procedure for inclusion of new employee:

Since the insurance policy has been taken on deposit premium basis the insurance company has

agreed to keep all new employees on cover from the date of their joining.

Medical expenses for compensation in leave of absences from duty.

The insurance company will reimburse 10 % of capital sum insured along with medical expenses of

40 % valid claim amount in case of temporary disablement.

Additional Benefit:

Expenses for carriage of dead body of the insured person death due to accident only to the

place of residence 2% of CSI or Rs. 5000/- which ever is lower.

Education grant is payable in the event of death or permanent total disablement of the insured

person.

A. One dependent child below 25 years of age 10 % of CSI subject to maximum Rs. 5000/-.

B. More than one dependent child below 25 years of’ age 10 % of CSI subject to maximum Rs.

10000/-.

32

Procedure:

If an employee covered under the policy meets with an accident he should at the earliest send a

report/convey to the personnel department the nature of the injury, cause, the doctor who is

treating and the likely period of absence.

The personnel departments then immediately notify the insurance company the details of acci-

dent as reported. Personnel department will insured that medical treatment has been taken by

the employee as there is an obligation to insurance company to insure that requisite medical

treatment has been taken from competent doctor with a view to speed up recovery and thus

minimize the disability period.

On completion of treatment and immediately after the employee reports for duty the claim

form should be completed in all respects enclosing their with original receipt given by the at-

tending doctor for treatment given and the same should be forwarded to the insurance com-

pany by the personnel department.

Transportation:

Transportation is provided for the employees from various points in Kim, and Railway station for

selected trains, to plant for covering all the duty and shift timings (Supervisors and above).

Children education

Kim has 4 English, 3 Gujarati and 2 Hindi medium schools

33

SEPARATION I RESIGNATION

Separation occurs whenever an employ is separated from the company for any of the following

reasons.

Resignation

Discharge / dismissal of any ground.

Retirement on attaining the age of 60 years.

An employee who wishes to resign from the services of the company will be required to give notice of

resignation as per the terms of his appointment for one month; he will have to be physically present in

the company. No leave or absence will be treated as a notice period.

The management may at its discretion accept such resignation with immediate effect or w.e.f. such

other date as it deems fit.

Exit interview of separated employees must be held by

1. Departmental head

2. Personnel head.

Notes of exit interview summary to be sent to unit head.

No final settlement will be made till the “Final due clearance form” is completed and sent to the

accounts department. This must be done before the date of a separation of the concerned employee.

34

TRAINING SCHEME

(PRODUCTION /SPINNING + MAINTENANCE/ ENGINEERING)

Preamble

Nakoda Ltd is a textile processing industry. In order to meet its requirement of workmen it has been

decided to introduce a training scheme for spinning as well as maintenance / engineering. The purpose

of the scheme is to locate arid recruit suitable persons as trainee and impart them training so that they

can he brought up to meet our requirement of workmen.

Definition

All persons recruited for training under the above scheme will be trainees and will continue to be

trainees till they are declared lit and confirmed in workmen category.

During the period of training they shall not be entitle to any wages. They shall only be paid a stipend

in order to help them to maintain them self

Objectives

The objectives of’ the training schemes are: -

To train fresh candidates for the skilled jobs for spinning, take-up and burn out.

To train checker for the quality control.

To train fresh candidate for skilled job of technicians for maintenance and overhauling of ma-

chinery and equipments in the field of mechanical, electrical and instrumentation and utility.

To train the fresh recruits to the level of required skill and to educate them and trained them in

a manner so that they conduct them self to our way of working and discipline.

Number of trainees

The number of trainees will depend on the requirement of each production and engineering and

maintenance section and the number will be mutually worked out by the concern departmental heads

and unit head of the company.

Qualification

35

A trainee should qualify the following condition:

He should be healthy person with no deformity.

He should be between age group of 18 to 25 years.

He should be educated up to SSC passed for production.

He should have passed ITI in different trades according to the engineering department.

Duration

The duration of the training period will be one year.

After successfully completion of the training period they will be observed in worker category “WE”.

Stipend

The trainee will be paid stipend of Rs.3100 per month of 26 working days.

Progress and promotion

The progress of each of the training will be closely watched by the concern departmental head and the

confirmation of the trainee will depend upon his satisfactory learning and a written report thereof

from the concerned departmental head to the personnel department.

Extension of the training period

Completion of training will be subject to satisfactory learning and the extension can be considered by

the concern departmental head in case he feels that the trainee needs more time of training. However

in case of extension the stipend will remain the same.

Training scheme (GET, MT, DET , B.Sc., Commercial training.)

36

Duration

The duration of the training period will he one year. [he training period can however he cut sort

subject to the incumbent having acquired the desired level of the post which can be assessed by the

concerned departmental head. A written report of the result will be send by the concern department

head to personnel department and personnel department will get the approval from the unit head.

37

MARKETING

DEPARTMENT

Good marketing is no accident, but result of careful planning and execution. It is both the art and a

38

science.

“Marketing is an organizational function and a set of processes for creating, communicating and

delivering value to customers and for managing customer relationships in ways that benefit the

organization and its shareholders.”

OBJECTIVE

To anticipate and respond effectively to discerning customer needs, competitor actions,

and blending information technology advance effectively to set up management process

and business system.

To have a constant interaction with the customer and use continuous feed back to

improve internal processes of the company.

The purpose of any business is to create and keep customers. The business is run from a production

oriented enterprise to a more customer driver one. The customer is the primary element, the key corner

stone, of the business.

The marketing department anticipates and responds effectively to discerning customer needs,

competitor actions and blending information technology advances effectively to set up management

processes and business systems.

Industrial marketing requires customisation and hence warrants constant interaction with the customer

and continuous feed back to the internal processes of the Company.

39

MARKETING PROGRAM

MARKETING MIX

Nakoda Ltd is one of the leading manufacturers of the Polyester Yarn.

Nakoda Ltd produces two types of Polyester Yarn

FDY – It is known as Fully Drawn Yarn and

POY – It is known as Partially Oriented Yarn

COMMUNICATION CHANNELS (Internal)

Communication is must for a company to go on and is a basis for decision making & decision making

putting the plan into action. A dedicated intercom connection facilitates the internal communication in

the plant.

40

ENTHUSED CUSTOMERSCOMPANY

PRODUCTS INTERACTION

VE

HIC

LE

S

CUSTOMER RETENSIONTARGETED

CLIENTELE TELEPHONE

REVENUES AND PROFITS

MARKET SHARE

CONTRACTSMARKETING AGENDA

CENTRALLY MONITORED FEED

BACK

PROMOTION

Direct Marketing: The Company is in to Business to business (B2B) Marketing. Its product is

polyester yarn which are not directly consumed by consumers so the company doesn’t need any

consumer oriented marketing, and hence the company is in direct B2B marketing.

It understands its business partners and associates need, it attends various trade fairs and exhibitions.

Representatives of the company of marketing department promote their products in such exhibitions.

The company usually gets the order directly from various companies and some of the orders by such

exhibitions and trade fairs.

CUSTOMER SATISFACTION

The Company is much cautious of its customer’s satisfaction. It allows its customers to visit the

company and welcomes suggestions if any. The company understands the need of its customers and

has set various quality standards for its regular customers, the product is rejected itself in company

premises if it falls anywhere below standards which assures the quality to its customers. The company

provides replacements if any defective goods is sent.

41

FINANCE

DEPARTMENT

Finance is like the blood in veins of the company. Whether small or big, each business has to

42

manage the finances properly. Thus it can be said that company’s survival and finance goes hand in

hand. If the finance department fails in proper administration, the company can collapse. Thus,

financial holds an important position in the company and must be handled with top priority.

“Financial Management is that managerial activity, which is concerned with the planning

and controlling of the firms financial resources.”

We cannot imagine a business without finance because it is the central point of all business

activities, no matter whether the business is small or big, government, semi government or non-

government. The finance function of the management is equally important for all profit making

organization.

Financial management is that specialized function of general management, which is related to the

procurement of finance and its effective utilization for the achievement of common goal of the

organization. It includes each and every aspect of financial activity in the business.

Finance is the most important and governing tool for any business. It can be termed as a hear

of business, thus, financial management is that managerial activity which is concerned planning and

controlling of the firms resources. Any firm performs finance functions simultaneously and

continuously in the normal course of business, finance function call for skillful planning, control and

execution of the firms activities.

Working Capital Management:

This is considered as moving blood in the body which goes on circulating in the same way the

working capital in the company goes on rotating the whole business cycle of the company runs on its

working capital task.

43

Working capital is the most important and difficult part of finance department. Working

capital management directly represents the management capabilities. It highly depends on managing

recovery of payments from customers and payment made to suppliers. It is not necessary that as much

we make late payments more strong will be the working capital. Company simply doesn’t follow this

concept. Company regularly clears the payments of suppliers on time which increases the reputation

of the firm and ultimately becomes the best customer of their suppliers.

Methods to calculate Depreciations:

Depreciation is a measurement of the reduction in the effective life of the asset due to certain

reasons during the given period of time. Gradual and permanent reduction in price of the asset is also

known as depreciation.

Depreciation of fixed asset has been provided on reducing balance method on the basis at the

rates specified in related schedule of Company’s Act, 1956. In respect of additions during the year,

depreciation has been provided on prorate basis for the completed number of days.

Internal Audit Policies And Control Systems:

Auditing is the process of the verification of the standards set and the actual things. In short,

auditing is nothing but to check the difference between what is in the books and the physical things

found. The auditing used by the company is both, auditing by self and auditing by C.A.

Cash audit is done every month. All the day-to-day cash expenses or amount withdrawn are

recorded in the books. The bank audit is done every month. At the end of the month, the bank

statement is compared with the records in the books. Thus, auditing helps to find out any differences

that have occurred and to eliminate them.

44

Internal audit keeps a threat on the employees, as they know that all the stocks and amount is

periodically verified so they do not dare to cheat the company. The company has purchased various

accounting software to maintain records of costing, purchase, sales, etc. they maintain double entry

system by using various accounting software.

Profit & Loss A/c

(Rs. in Crores)Particulars Dec-09 Dec-08 Dec-07 Dec-06 Dec-05 Dec-04

INCOME :

Sales Turnover 1,029.31 801.41 580.04 355.04 189.18 150.88

Excise Duty 43.04 22.46 20.32 12.62 22.68 30.22

Net Sales 986.27 778.95 559.72 342.42 166.50 120.66

Other Income 3.54 2.50 2.24 1.92 1.44 1.77

Stock Adjustments 14.99 6.07 13.92 10.54 0.09 -0.10

Total Income 1,004.80 787.52 575.88 354.88 168.03 122.33

EXPENDITURE :

Raw Materials 904.43 706.18 524.77 313.36 137.33 91.40

Power & Fuel Cost 14.76 14.21 8.89 8.20 7.71 6.91

Employee Cost 3.42 2.59 2.17 1.95 2.21 2.16

Other Manufacturing Expenses 20.25 20.17 12.26 11.44 6.01 9.00

Selling and Administration Expenses 8.93 7.19 4.83 5.27 4.45 3.76

Miscellaneous Expenses 0.11 0.09 0.07 0.06 0.02 0.06

Less: Pre-operative Expenses Capitalised 0.00 0.00 0.00 0.00 0.00 0.00

Total Expenditure 951.90 750.43 552.99 340.28 157.73 113.29

Operating Profit 52.90 37.09 22.89 14.60 10.30 9.04

Interest 20.14 15.62 8.91 5.51 4.22 3.89

Gross Profit 32.76 21.47 13.98 9.09 6.08 5.15

Depreciation 5.39 4.77 3.63 2.91 2.18 2.13

Profit Before Tax 27.37 16.70 10.35 6.18 3.90 3.02

Tax 4.65 3.26 0.99 0.00 0.04 0.00

Fringe Benefit tax 0.00 0.00 0.06 0.04 NA NA

Deferred Tax 0.00 0.00 0.00 0.00 0.00 0.00

Reported Net Profit 22.72 13.44 9.30 6.14 3.86 3.02

45

Extraordinary Items 0.00 0.00 0.12 0.00 0.00 0.00

Adjusted Net Profit 22.72 13.44 9.18 6.14 3.86 3.02

Adjst. below Net Profit -1.84 -1.67 7.38 -1.37 0.00 0.00

P & L Balance brought forward 41.95 31.34 15.54 10.77 6.91 3.89

Statutory Appropriations 0.00 0.00 0.00 0.00 0.00 0.00

Appropriations 10.36 1.16 0.88 0.00 0.00 0.00

P & L Balance carried down 52.47 41.95 31.34 15.54 10.77 6.91

Dividend 1.16 0.99 0.75 0.00 0.00 0.00

Preference Dividend 0.00 0.00 0.00 0.00 0.00 0.00

Equity Dividend % 7.00 6.00 5.00 0.00 0.00 0.00

Earnings Per Share-Unit Curr 13.57 8.41 6.11 4.09 3.51 2.75

Earnings Per Share(Adj)-Unit Curr 3.39 2.10 1.53 1.02 0.88 0.69

Book Value-Unit Curr 57.42 45.30 39.54 29.00 27.94 26.35

Balance Sheet46

(Rs. in Crores)Particulars Dec-09 Dec-08 Dec-07 Dec-06 Dec-05 Dec-04SOURCES OF FUNDS : Share Capital 16.60 15.78 15.00 15.00 11.00 11.00Reserves Total 78.72 55.70 44.31 28.50 19.73 17.98Total Shareholders Funds 95.32 71.48 59.31 43.50 30.73 28.98Secured Loans 120.85 72.44 64.41 36.38 34.92 22.95Unsecured Loans 168.06 59.66 26.49 15.38 1.44 1.14Total Debt 288.91 132.10 90.90 51.76 36.36 24.09Total Liabilities 384.23 203.58 150.21 95.26 67.09 53.07APPLICATION OF FUNDS : Gross Block 138.82 96.91 92.85 67.48 66.29 64.42Less : Accumulated Depreciation 41.82 36.43 31.66 38.54 35.63 33.44Less:Impairment of Assets 0.00 0.00 0.00 0.00 NA NANet Block 97.00 60.48 61.19 28.94 NA NALease Adjustment 0.00 0.00 0.00 0.00 0.00 0.00Capital Work in Progress 76.37 5.07 0.00 0.00 0.00 0.00Investments 0.59 0.04 0.19 0.19 0.22 0.22Current Assets, Loans & Advances Inventories 77.20 58.74 34.70 26.51 13.96 8.38Sundry Debtors 277.17 207.50 151.85 93.69 47.41 29.26Cash and Bank 65.04 35.45 29.05 14.62 5.92 5.22Loans and Advances 20.96 11.16 1.67 2.04 0.23 0.35Total Current Assets 440.37 312.85 217.27 136.86 67.52 43.21Less : Current Liabilities and Provisions Current Liabilities 222.96 165.53 113.07 69.35 31.31 23.44Provisions 0.00 1.17 0.88 0.00 0.00 0.00Total Current Liabilities 222.96 166.70 113.95 69.35 31.31 23.44Net Current Assets 217.41 146.15 103.32 67.51 36.21 19.77Miscellaneous Expenses not written off 0.00 0.00 0.00 0.00 0.00 0.00Deferred Tax Assets 0.00 0.00 0.00 0.00 0.00 2.10Deferred Tax Liability 7.14 5.32 3.65 1.38 0.00 0.00Net Deferred Tax -7.14 -5.32 -3.65 -1.38 0.00 2.10Total Assets 384.23 206.42 161.05 95.26 67.09 53.07Contingent Liabilities 1.44 1.44 2.17 0.15 0.15 0.15

47

\

PRODUCTION

DEPARTMENT

What is Partially Oriented Yarn

48

Partially Oriented Yarn, commonly known as POY is the primary form of Polyester yarn. It is also

known as Polyester Pre-Oriented Yarn. It is the first form of yarn made directly from PTA & MEG or

by spinning Polyester PET Chips. POY is mainly used in texturizing to make textured yarn, also

known as Polyester Drawn Textured Yarn (DTY). POY can also be used in draw warping for weaving

and warp knitting of fabrics.

POY yarn is available in different luster like Semi-Dull POY and Bright POY. The Bright POY

has the shine in it due to the cross-sections in the filaments. The fabric made from Bright POY

also has the bright luster. Polyester POY yarn is mainly available in Raw White color & is also

available in various different colors. POY is usually colored by the Dope Dyed technology as it is

more efficient & the yarn gets evenly colored at each & every part. Color master-batch is mixed

with the raw material to make the dope dyed POY. Dope dyed POY yarn can be used to make

the Dope Dyed DTY yarn.

What is Fully Drawn Yarn

49

FDY is the abbreviation for Fully Drawn Yarn. It is also know as Polyester Filament Yarn (PFY) or

Spin Draw Yarn (SDY). FDY is mainly used as weft or weaves in making fabrics. FDY can be knitted

or woven with any other filament yarn to get fabric of various different varieties. It is mainly used in

Home Furnishing Fabrics, Fashion Fabrics, Denim, Terry Towel and others.

FDY yarn is mainly available in 3 lusters - Semi-dull (SD), Bright (BR) having circular section &

Triloble Bright (TBR) having triangular cross-sections. Filament yarn having trilobal bright luster is

widely used in making curtains, bed-sheets and carpets. FDY is available in Raw-white as well dope

dyed. Dope Dyed FDY yarn can be used to make the colored fabric directly instead of making the

fabric with FDY Raw-white first & then dyeing it. Catonic FDY is another variation of Filament yarn.

Catonic FDY yarn is made from Catonic PET Chips.

MANUFACTURING PROCESS

50

INTRODUCTION

51

STORAGE SILO WEIGHMENT

HOPPER CHIP FEED CHIP CHARGING

EXTRUDERCRYSTALISER CHIPS DRYING

BEAM MELT FILTER

DAILY SILO

SPINNING

DISPATCH

PACKINGINSPECTIONTAKE-UP

RAW MATERIALUNLOADING &

STORAGE

The basic requirement of Production department is to produce Partially Oriented

Yarn (POY) from Chips. Different Denier/Filaments POY is generated as per the

market requirement. Production is divided in to following sections.

1. Chips Charging

2. Chips Drying, melting & Filtration

3. Spinning

4. Take-Up/Winding.

Production requires service department’s aid for smooth running of process.

1. Mechanical

2. Electrical

3. Instrument

4. Utility

Production is broadly divided in to following parts to ensure excellent running

condition of process equipments.

1. Quality & Quantity of POY as per market requirement.

2. Preventive maintenance of equipments

3. Breakdown & shutdown maintenance of equipments.

PRODUCTION PROCESS

1. Chips Charging

52

1 2 3 4

In the chip charging process, the raw material ‘chips’ are fed on continuous basis to maintain the

continuous production. As the Raw Material is received in Trucks in 50kg bag or 900kg bags, it is

unloaded in the Chips storage area using Electrical Hoist. Then the checking of bags for its sealing

and physical condition is done.

CHIPS FEEDING

2. Chips Drying, melting & Filtration

Chip Drying

Raw chips contain 0.1 – 0.2% moisture. Hot dry air in the dryer is used to remove the moisture of

raw chips up to 0.004%. The atmosphere air is dried in Air-drying unit to get dew point of –40 °C.

53

Silo 1

Silo 2

HTR

HTR

This dried air is then passed through a heater to get the temperature. about 180 °C. This hot dry air

is inserted from bottom portion of chips dryer. The air travels upward of the chips dryer then

moisture of the chips is removed. This air is exhausted from top portion of the chips dryer.

Temperature gets vary from the norms when plant start up is going on, also set temperature value

may be varying depending on product pattern. The parameters, which are controlled, are as

follows-

(1) Dryer Inlet Temperature. : 190 ± 10

(2) Dryer Inlet Press. : 50 ± 20

(3) Crystallizer Inlet Temperature. : 195 ± 10

(4) Crystallizer Inlet Press : 35 ± 5

(5) Crystallizer Outlet Press. : 0 ± 20

DRYER VENT TO EXCES AIR

VF CR

SUCTION BLOWER

DRY AIR FROM ADU ROOT BLOWER ROTARY VALVE

TO EXTRUDER

Extruder

Dried Chips are fed to an extruder where it is melted. The barrel is electrically heated its temperatures

are controlled by controller. There are 5 heating Zones. Zones temperature set point can be changed as

54

WCH

CPFEXTRUDER WITH ZONES

FILTER DISCHARGE PRESSURE

MESURING HEAD

per requirement. Depending on the behavior & throughput of the line Extruder zone temperature to be

kept 200 0C to 300 oC for maintaining melt temperature (FDT) temperature between 2880c ± 100c

but this value can be vary when line S/D & start UP Depending on the duration period. Due to

extruder characteristics of L#05 & L#06 actual zones temperature remain high compare to set value

melt pressure controlled by controller. (EDP& FDP)

(Depending on the line configuration.).

There are 2 sensors provided in the polymer line, one for melt temperature other is for melt pressure.

The solid chips converted in to melt form.

CPF:

55

Polymer MeltEDP FDP

Diphyl Heated Melt Line

ManiFold Diphyl Heated

Melt Pump

Packs

Spg. Beam

The Polymer melt with certain temperature. ~ 285 15 °C and pressure >

120bar is passed through a filter called CPF (continuous Polymer filter).

This filter has 2 cartridges one is for online CPF and another is for off line

CPF. The impurities are removed up to 20 10 micron. When Delta

pressure ~ 80 10 bar or as per requirement of process, CPF change over

is carry forward.

3. Spinning

56

CPF

Spinneret

Air

The melted polymer travels from extruder to the melt pump. The melt pump calculates the

required quantity of melt as per denier. This can be controlled by RPM of the melt pump. The

pack contains spinnerets which is having fine holes. From pack polymer comes out in the form of

filaments. These filaments get solidified due to Quench Air which is supplied from the Quench

screen. Such filaments are clubbed to form one yarn at Spin Finish Nozzle. The spin finish is

applied to import lubrication, antistatic, excessiveness to the yarn, as it is wound at a very high

speed of about 2800 to 3400mpm.

4. Take Up

57

Quench Screen

Filaments(14 to 36)

Spin Finish Nozzle

Yarn

To take - up

Quench

20°C ±3

Supply

Pig Tail Guide

The yarn coming from Spinning Passes from Pig tail guide to maintain tension of yarn and then it

winding on Paper Tube (which is fixed on B/C) winding is possible only by rotating B/C. The Paper

Tube is fixed on Bobbin Chuck. There is air pressure in Bobbin Chuck to release / tight the Paper tube

when it comes in contact of Friction roller it becomes to rotate and rotating winding is possible.

When spool is full, the Yarn is sucked by the suction Gun winder lifted by pushing ‘Up’ button. As

winder lifted B/C breaks comes in operation. B/C stopped within one minutes. Full package taken out

on Doffing Trolley by pushing pusher and package shifted on this Trolley (Manually). After that

sticker pasted on the spool and Trolley send to Q.C. dept. for checking properties.

Burn Out Department

Purpose and Scope

Smooth running of process

Reduce the quality degradation.

Assembly of the packs, C.P.F, Melt pump and Spin finish pump for future requirement.

Spin finish oil Preparation

Activities

The activities in Burn- Out departments are as per schedule pack are changed. For pack changing old

pack is removed and new pack already heated in P.P.H at least 4 hours.

For new Pack & CPF preparation required Furnace, Fluidized, Uniclean bath, Acid bath, Hot water

bath, Ultrasonic Systems, etc.

Cleaned parts of C.P.F and pack are brought from cleaning room to assembly room. Before

assembling pack every spinneret hole is to be checked by microscope and every C.P.F candle is to be

checked by air bubble test.

Assemblies of melt pump, Spin finish pump, pack and C.P.F is being done.

If melt pump shear pin breaks/damaged it has to be changed and if it breaks repeatedly then check the

whole system of melt pump completely.

Preparation of Spin Finish Oil with required concentration (7% - 15%)

58

Yarn coming from Spinning.

DowFor by Pass

Boost Press.

Pig Tail

Up

Stop

Start

Pusher

Releasing

Boost

Arm

Winder

P/Tube

TR Guide

Pig Tail

B/C

YARN PATH

Pig Tail Guide

Arm Guide

Pig Tail

PRODUCT SPECIFICATIONS

Nakoda ltd is a leading manufacturer of polyester yarn. They can be classified in 2 types –

1. POY

2. FDY

POY

Denier Finish

51/14 Semi Dull

48/14 SD (DT)

100/36 Semi Dull

110/36 Semi Dull

120/36 Semi Dull

126/36 Semi Dull

130/36 Semi Dull

140/36 Semi Dull

140/48 Semi Dull

145/36 Semi Dull

155/36 Semi Dull

160/36 Semi Dull

130/72 Semi Dull

50/48 Semi Dull

80/24 Semi Dull

FDY

Denier Finish

75/36 Semi Dull

75/72 Semi Dull

50/48 Semi Dull

90/48 Semi Dull

61/72 Semi Dull

71/36 Bright

150/48 Bright

150/72 Bright

150/96 Bright

30/14 Semi Dull

50/24 Semi Dull

50/36 Bright

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INVENTORY MANAGEMENT SYSTEM

FOR RAW MATERIALS

Every month the Production target is decided on the basis of the market requirements. For that the

Marketing Department sends the total schedule about the Production & Dispatch. The purchase of the

raw Material is done by the Purchase Department. The purchase is done on the basis of production

requirement.

At the same time the Raw Materials stored status at the warehouse is daily communicated through the

intercom to the concerning departments like production.

FOR FINISH GOODS

In Nakoda Ltd the manufactured products are dispatched as customer orders which it gets through

Marketing Department. Manufactured goods are stored into the warehouses and as per the customer

requirements the dispatch is done.

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QUALITY CONTROL

DEPARTMENT

INTRODUCTION61

At Nakoda Ltd, quality is of paramount importance. So it has to maintain a high quality level in order

to meet its customers need.

The basic responsibility of quality control department is to ensure quality of all incoming material,

intermediate, & finished material

There are two sections in this department.

1. Textile laboratory.

2. Chemical laboratory.

Basically there are two types of quality control work required to ensure excellent quality.

1. Physical testing.

2. Chemical testing.

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GRADE CHART ACCORDING TO PHYSICAL FAULTS

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Doff down grade as PQ/SS/CLQ at following conditions –

1. Chips Change

2. Shade Variation in all Line

3. Line Break down

4. Percentage of Moisture in dried chips is High

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Procedures for QUALITY CONTROL

1. DENIER TESTING

Objective: To Determine the Denier of POY yarn

Definition: Weight in gms of 9000 meter of yarn is Denier.

Equipment:

1. Wrap Reel

2. Table Top Balance

3. Scissor

Procedure:

1. Make a hank of 90 mts of yarn on wrap reel without applying any pretension.

2. Weigh the hank on Table Top Balance up to 3 decimals and note down the weight of yarn.

Calculation: Denier of the yarn = weight in gms of the hank × 100

Critical Check Point:

Immediately after the take up winding at every new start up of line or break down or shut down or

product change in line. Regular testing of alternate doff with testing of breakage spool of every line

is carry out continuously along with production.

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2. DRAW FORCE TESTING

Objective: Determination of the Draw Force of POY

Principle: The Force used to draw the yarn at 60% Draw Ratio and 150°C temperature.

Equipment: DYNAFIL-M ( Make-Textechno)

Instrument Startup Procedure:

First of all start the power supply of Dynafil -M, Computer. Then maintain temperature of heater at

150°C then we started the testing of Draw Force.

Procedure:

First a standard Spool is tested, then after satisfactory results the checking of routine as per system

goes on. All the values and behavior of running yarn are shown on Computer monitor.

Testing Parameter:

CODE TEST

1. Test Length 100 meter

2. Test Speed 100 m/min

3. Draw-off-Godet 60%

4. Pretension cN

5. Heating Tube Temp 150°C

6. Standard Deviation Max 5.0 cN

7. Force Limits As per denier

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Immediate after Take-up winding at every new start up of line or break down

or Shut down chips change in line or denier change. One end of each winder

checked per day.

Non Confirmative Product: Downgraded as per norms chart.

3. SHRINKAGE TESTING

Objective: To determine % Shrinkage of the POY by Boiling water.

Principle:

Length of the yarn before and after treatment with boiling water is measured at constant tension. (600

gms) and the difference is expressed in percentage.

Equipment:

1. Wrap Reel 2. Water bath (For boiling water)

Procedure:

1. Find out the exact denier of the yarn.

2. Using the formula given below find out the number of wraps to be taken.

Weights to be hang × 5

No. of wraps = --------------------------------------

Actual Denier of poy yarn

3. The required number of the turns as above on wraps reels and hang the hanks on a pin and take the

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initial length.

4. After taken initial length hank remove from pin and keep it in boiling water for 30 minutes.

5. After 30 minutes hank remove from water and again hang on a pin for 5 minute and take final

length.

Calculations:

(Initial length – final length)

Percentage of shrinkage = ----------------------------------- × 100

Initial length


1. At the time of raw material changing, break down and process parameter changing.

2. We check the % shrinkage in routine work schedule.

Non Confirmative Product: Downgraded as per norms.

4. TENSILE TESTING

Objective: To determine the percentage of Elongation at the break and Tenacity in gms /denier of the

POY.

Principle: Tension is applied to the fixed length of the yarn till it breaks and its elongation end load

applied at the time of break is measured.

Equipment:

1. KMI Tensile Tester (Manual)

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2. Statimat-M (Automatic)

Procedure:

a) Percentage of Elongation & Force :

In this method 200 mm of yarn is adjusted between two jaws of Tensile tester and starts the

instrument, lower jaw moves opposite side of other jaw and yarn extends along with it, as

soon as yarn breaks operator stops machine immediately and notes reading from the scale

of machines. The readings is noted i.e. Percentage of Elongation and Force.

b) Tenacity: For Tenacity we applying following formula.

Force

Tenacity = ----------- gms/denier

Denier


Tensile test carry over on yarn of every line immediately after start up of line after break down, at the

change or disturbance of any kind of parameter. Beside it daily regular checking of yarn of each and

every line is done.

Non Confirmative Product: Downgraded as per norms chart.

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STORES

DEPARTMENT

70

Stores are the place where the raw material and other required things are stored as the things are not

always easy going an optimum amount of storage is to be maintained.

PACKAGING STORES

Packaging is an essential part of the total process of transfer of finished products to the Dispatch

department and then to the customer. Packaging is an art, an art of making the things reach to its

destiny with utmost care and minimum breakdowns and hence contributing to the profits if done

properly.

Different packaging materials at stores

Box

Strapping

Bopp tape

Marker pen

Plastic Adapter

Thermocol sheet

Plastic (polethene) cover

Iron clip

Sealer machine

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GATE ENTRY

REJECTED RAW MATERIAL

ARRANGEMENT OF PACKING MATERIAL AT STORE

RECEIPT OF RAW MATERIALISSUE OF MATERIAL TO REQUIRED DEPARTMENT

QUALITY CHECK

PACKING STORE

APPROVAL RAW MATERIAL

RETURN FROM DEPARTMENT TO PACKING STORE

STOCK VARIFICATION

ORDER FOR PACKING MATRIAL PURCHASE

RETURN TO SUPPLIER

ON LINE MATERIAL SEND TO REQUIRED DEPARTMENT

FLOW CHART OF PACKAGING STORES

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After the gate entry of packaging materials is done, it reaches to the packaging stores after the

quality is checked. At packaging stores the material receipt is made & if any demand of material

is there the material is supposed to be transferred to that department. If not, then the material is

stored at the packaging stores. Materials are given different codes for their identification but the

arrangement of packaging material is done over their as per the available space since the space

problem is there.

Issue of packaging material is done as per the departmental need / demand. After the issuance of

the packaging material if the material found not suitable or the remained material is returned to

the packaging stores.

Daily recording of receipt, issue & return of the materials is done both the manually & through

the SAP system. The purchase of packaging material is carried out by the HOD of the packaging

stores as the different departments make their demand through e mail to the packaging stores. On

an average about 2 Crores of material is purchased monthly.

MATERIAL HANDLING

From gate to the packaging store material handling is done with the help of vehicles.

Material handing is done with the help of the Hand Striker within the packaging store.

From packaging store to various departments the material handling is done with the help

of Trolleys – two wheeler, three wheeler, four wheeler etc.

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STORES

Store is having its own importance within Nakoda ltd as it affects the total production process.

Store is managed quite well with many within the stores.

Store is divided into 3 parts and they are –

Receipt of material

Storage & Issue of materials

Disposal of scrap

Basically the total procedure is followed very systematically. Purchasing process is done by the

Surat office. Company purchases are scheduled by the Surat Head Office. Store also contains the

lubricants & gas storage. Company is having various types of receipts like receipt of the raw

materials; spares & project receipt i.e. the capital items. Capital items are those which are used

for specific purpose.

RECEIPT OF RAW MATERIAL

All the incoming materials are received along with the party’s challans / transporters

copy of excise gate pass at the gate for security inward entry.

The challan / challan cum invoice copy are then stamped with ‘SUBJECT TO

QTY.VERIFICATION & INSPECTION’ along with the Date of

acknowledgement and signature of the stores personnel.

Subsequent to the security inward entry, the challan of the material receipt is sent to

the laboratory (chemical lab) by the stores executive intimation for quality testing by

drawing samples from the consignments.

The laboratory (chemical lab) test the material on intimation of approval from the

laboratory by “incoming raw material inspection report” the material is taken up for

weighting.

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All the incoming consignments shall accompany a weight slip from an outside source.

The stores personnel weight the material at the works weighbridge (at gate no.2) and

a printout (ticket) of the gross weight is taken out after entering the vehicle number /

challan details etc.

The empty vehicle is again weighed at the work weighbridge and Quantity unloaded

is determined, with the stores personnel again taking out a printout of the weight slip.

The freight payment advice if payable, as per the terms, is then prepared by the stores

personnel. This is authorized by the stores HOD and is then forwarded to accounts

department for payment.

‘Receiver’ is prepared in Material Management System by the stores personnel and

the quantity as per the weigh slip is accounted.

The printout of ‘Receiver’ is then prepared in duplicate duly signed by the store

personnel. After the approval of the laboratory in charge it is finally authorized by the

stores HOD & the original receiver along with the original challan is then forwarded

to accounts department for bill passing / payments.

ISSUES OF RAW MATERIAL

In case of Raw Materials, Department is doing issues and the same is communicated to all

concerned through memo, including stores.

The Raw Material consumption / stock statement is then derived from the system on day to day

basis & sent to purchase & lab.

REJECTION OF RAW MATERIAL

In the event of laboratory rejection the entire material (before unloading) the receiver will

be prepared for challan quantity & a corresponding return to supplier document will be

prepared for Receiver quantity.

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At the time of unloading if the laboratory conducts a second sampling, it will authorize

rejection, if any (partly / full) in the incoming raw material inspection. Report as well as

incorporate the remarks on the challan with reasons thereof wet bags, coarse, material etc.

Only the accepted quantity will be accounted as receipts in Receiver & a corresponding

document “Return to Supplier”. For the rejected quantity will be prepared authorized by

stores HOD which is then sent to Accounts department.

The rejection quantity is returned back immediately (same truck in which material was

received) after weighing & preparation of the non-returnable gate pass

RECEIPTS OF SPARES

All incoming material is received along with party’s challans / transporters copy of

excise gate pass at the gate for security inward entry.

Stores personnel then receive the challans duly acknowledged (stamped & signed by

the security personnel).

The materials received are unloaded in the earmarked place material for inspection

after verifying the quantity and item description as mentioned on the challan.

The challan (received from the supplier for the material supplied) is then duly

stamped “SUBJECT TO QUANTITY VERIFICATION & INSPECTION “.

The ‘receiver’ for the material received is than prepared (in duplication) by the stores

personnel.

Based on the detail mentioned in Receiver and P.O. the user department is then

intimated of the receipt of the material so that inspection could be carried out by

them.

In case of the excess/ short quantity or damaged goods are received then the same is

intimated to purchase department telephonically for necessary action. For excess /

damaged receipt of goods, the same are returned to supplier vide gate pass &

rejection letter authorized by stores HOD.

In case on receipt of the material, ‘Receiver’ could not be prepared for non-

preparation of the corresponding P.O. then the same is intimated to purchase

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department.. Till the time P.O. is not received the challan is kept pending for material

accounting.

ISSUE OF SPARES

All issues from the stores are made only against the stores requisition Memo.

The stores requisition memo is received from various departments, authorized by the

approved signatories. The list of approved signatories is updated half yearly.

Based on the item description/item code in the issue slip, received from the user

department, the physical inventory stock is ascertained through MMS System.

After confirmation of requisite stock in the inventory, the material is physically

issued to the user department and the corresponding issue entry based on the stores

requisition memo is entered in the MMS System.

The stores requisition memo is then duly signed by the stores issuing personnel.

REJECTION OF SPARES

All rejected material after the inspection (by the user department) are stacked

separately in the rejection rack (specifically earmarked area) and are return back to

the supplier vide gate pass and a rejection letter prepared by the stores personnel and

authorized by stores HOD.

The same is also intimated to purchase and account department for future necessary

action.

A corresponding document return to supplier (for rejected quantity) is prepared and

signed by the stores personnel and authorized by stores HOD which is then sent to

accounts department.

For part rejection also the same procedure/ document is followed and only the

accepted quantity (approved by the user department) is taken for material accounting

and the rejected quantity is not accounted.

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SCRAP DISPOSAL

A sale order contract is prepared, for disposal of scrap of regular item, based on quotations

invited from parties. The parties are finalized (based on the quotation received) by stores in

charge, Accounts in charge & internal auditor.

All non regular item scrap is sold based on best quote received in sealed covers & as approved

by scrap committee.

INVENTORY MANAGMENT

The inventory to be properly stacked in the earmarked places (after the inspection of

the user department) after giving the corresponding item codes based on the category

& the location description entered into the system.

Material department’s spares storage area is maintained with proper rack

identification no.

HOD of material ensures that the pathways between racks are clear & not blocked

with materials to ensure clear pathway for normal and / or emergency movements.

All the personnel involved in loading of heavy materials / equipments shall be given

adequate training particularly regarding to H & S (Health & Safety) points by the

safety officer.

INVENTORY CONTROL

All the materials received are stores / stacked at the respective locations as already

detailed in the MMS system.

The inventory stacking is based on different categories & group.It is ensured that

chemicals are issued directly to the user department in case of emergency / delayed

receipt & are required to be stored.

All the items are tagged with the item code.

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Perpetual inventory for major item for all groups is taken on regular basis & the

discrepancies observe are highlighted to Management.

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POWER PLANT

Power plant provides the essential electricity to the all the plants and other departments. The

power plant has a power generation capacity of 6.2 MW. It has four gas engine base power

generators.

First two generators were taken on rent in 2006 and its power capacity is 1.1 MW each, other

two generators were taken on rent in 2007, they both have the same capacity of 1.3 MW each.

These generators were rented to satisfy the power demand which was going to be generated with

the advent of starting of FDY plant. Power generators 1,2,3,4 are named as A, B, C and D in the

plant.

The power requirement of the Nakoda Ltd is between 5 to 6 MW.

Power plant has a dedicated control room where a continuous monitoring of the whole system is

done; Hourly reading of the various parameters is noted down. Alarms are set to crucial

parameters which ring up when any of the parameter exceeds so that necessary correction can be

done.

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BIBLIOGRAPHY

Primary Data:

1. Standard Operating Files of various departments of Nakoda Ltd.

Books:

1. Marketing Management – A South Asian Perspective- 13th edition by Philip

Kotler, Kevin Lane Keller, Abraham Koshy, and Mithileshwar Jha

Web-Links:

1. http://www.nakodaltd.com

2. http://www.kayavlon.com/

3. http://www.wikipedia.org/

4. http://www.indiainfoline.com/Markets/Company/Fundamentals/Directors-

Report/Nakoda-Ltd/521030

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http://www.indiainfoline.com/Markets/Company/Fundamentals/Directors-Report/Nakoda-Ltd/521030

http://www.indiainfoline.com/Markets/Company/Fundamentals/Directors-Report/Nakoda-Ltd/521030

http://www.wikipedia.org/

http://www.kayavlon.com/

http://www.nakodaltd.com/

Summer Training Report on Nakoda Ltd

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