A REPORT ON ORGANISATIONAL STUDY CONDUCTED IN MAYUR UNIQUOTERS LTD. Submitted in partial fulfillment of the requirement of the POST GRADUATE PROGRAMME IN MANAGEMENT
Submitted by: RAVI PATEL Registration Number: PA 9046
Under the guidance of Prof. BAGALKOT L. H.
RIMS RAMAIAH INSTITUTE OF MANAGEMENT STUDIES
Evolving Leaders
RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 193, NEW BEL ROAD, M.S.RAMAIAH NAGAR, BANGALORE 5600 54
1
2009-2 009-2011
CERTIFICATE This is to certify that the p roject report at
MayurUniquoters MayurUniquoters Ltd.
Rajasthan submitt ed ed in p arti al fulfillment of th e requirement fo r the award of the de gree of Post Graduation Programme In Management TO
is a rec ord of raining carried out by bonafide t ra RAVI PATEL
Under my supervision and the no part of this report h a s b een submitt ed ed for
the
award of any other Degree/diploma/f ell ell owship or similar tit le le or priz es.
FACULTY GUIDE
Signature:
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Name:Prof. BAGALKOT L. H.
STUDENT'S DECLARATION
I, MR. RAVI PATEL Student of PGPM (Post-Graduation Program in Management) 2009-2011 studying at RIMS (Ramaiah Institute of Management Studies), Bangalore, declare that the project work entitled ³Organization study of MAYUR UNIQUOTERS LIMITED, RAJASTHAN ´ was carried by me in the partial fulfillment of PGPM
autonomous program under the RIMS.
This Organization study was undertaken as a part of academic curriculum of PGPM. It has not commercial interest and motive. It is my original work. It is not submitted to any other organization for a ny other purpose.
Enrl. No: PA9046
Date : Place :Bengalore
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Acknowledgments
It gives me imm ense p lea sure to present this report on organiz ation stud y carried out at MAYUR UNIQUOTERS LIMITED in p arti al fulfi llment of Post
Grad uat e Program in Mana gement.
No work can be carried out without the help and guidance of var va rious persons. I am happy to t ake ake this opportunity to express my gratitude to those who have
been helpful to me in comp leting this organiz ation stud y.
ernal guide Prof. BAGALKOT L. H. for At th e outs et, my sincere th ank s to my int ernal
his remarkable and signifi cant guidance and advice to speed up my project.
At the out le let I would like to thank MR. B S NATHAWAT ( Dept. HR) for their
valuable advice and guidance during my organiz ation stud y completion, also
thank fu ful to the members of all the departm ents for tim ely help concerning various aspects of stud y.
Last ly I w ould like to thank my parents, f riends and well wish ers who encouraged me to do this work and all those w ho cont ribut ed ed direc t ly or
indirect ly in comp leting this organiz ation study to whom I am ob ligat ed ed to.
Place:RAVI PATEL
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Reg. No.PA9046
CONTENT Chapter 1. Organizational Organizati onal Behavior«««««««««««««««... Behavior «««««««««««««««...6-10 6-10 Chapter 2. Study of the the Industry Industry 2.1 Industry Profile««««««««««««««««««..«12-16 2.2 Porter¶s Five Forces Model«««««««««««««..«.17-19 Chapter 3. Organization Study 3.1 Company Profile«««««««««««««««««.«....21-37 3.2 Organizational Structure and Its Analysis««««««««...38-41 ..42-71 3.3 Study of Functional Departments ..42 3.4 The Latest Latest Audited Re port 7 7 2-80 Chapter 4. SWOT Analysis..81-83
Chapter 5. Discussion on Training 5.1 Student work Profile««««««««««««««««««....85 5.2 Learning Experience«««««««««««««««««...86-87
Chapter 6. Bibliography«««««««««««««««««..««««..88
5
CHAPTER 1
ORGANIZATIONAL BEHAVIOR
6
1.Organizational Behavior
Introduction Organizational Behavior (OB) is the study and application of knowledge about how people, individuals, and groups act in organizations. It does this by taking a system approach. That is, it interprets people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. Its purpose is to build better relationships by achieving human objectives, organizational objectives, and social objectives. objectives.
Elements of Organizational Behavior The organization's base rests on management's philosophy, values, vision and goals. This in turn drives the organizational culture, which is composed of the formal organization, informal organization, and the social environment. The culture determines the type of leadership, communication, and group dynamics within the organization. The workers perceive this as the quality of work life, which directs their degree of motivation. The final outcomes are performance, individual satisfaction, and personal growth and development. All these elements el ements combine to build the model or framework that the organization organizat ion operates from.
Models of Organizational Behavior There are four major models or frameworks that organizations operate out of: Autocratic - The basis of this model is power with a managerial orientation of authority. The employees in turn are oriented towards obedience and dependence on the boss. The employee need that is met is subsistence. The performance result is is minimal. minimal. Custodial - The basis of this model is economic resources with a managerial orientation of money. The employees in turn are oriented towards security and benefits and dependence on the organization. The employee need that is met is security. The performance performance result is passive cooperation. cooperation. Supportive - The basis of this model is leadership with a managerial orientation of support. The employees in turn are oriented towards job performance and
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participation. The employee need that is met is status and recognition. The performance result result is awakened drives. Collegial - The basis of this model is partnership with a managerial orientation of teamwork. The employees in turn are oriented towards responsible behavior and self-discipline. The employee need that is met is self-actualization. The performance result is moderate enthusiasm. Although there are four separate models, almost no organization operates exclusively in one. There will usually be a predominate one, with one or more areas over-lapping in the other models. The first model, autocratic, has its roots in the industrial revolution. The managers of this type of organization operate out of McGregor's Theory X. The next three models begin to build on McGregor's Theory Y. They have each evolved over a period of time and there is no one "best" model. The collegial model should not be thought as the last or best model, but the beginning of a new model or paradigm.
Social Systems, Culture, and Individualization A social system is a complex set of human relationships interacting in many ways. Within an organization, the social system includes all the people in it and their relationships to each other and to the outside world. The behavior of one member can have an impact, either directly or indirectly, on the behavior of others. Also, the social system does not have boundaries...it exchanges goods, ideas, culture, etc. with the environment around it. Culture is the conventional behavior of a society that encompasses beliefs, customs, knowledge, knowledge, and practices. It influences human behavior, even though it seldom enters into their conscious thought. People depend on culture as it gives them stability, security, understanding, and the ability to respond to a given situation. This is why people fear change. They fear the system will become unstable, their security will be lost, they will not understand the new process, and they will not know how to respond to the new situations. Individualization is when employees successfully exert influence on the social system by challenging the culture.
Organization Development Organization Development (OD) is the systematic application of behavioral science knowledge at various levels, such as group, inter-group, organization, etc., to bring
8
about planned change. Its objectives are a higher quality of work-life, productivity, adaptability, and effectiveness. It accomplishes this by changing attitudes, behaviors, values, strategies, procedures, and structures so that the organization can adapt to competitive actions, technological technological advances, and the fast pace pace of c ha n g e within the environment. There are seven characteristics of OD: Humanistic Values: Positive (McGregor'sTheory Y).
beliefs
about
the
potential
of
employees
Systems Orientation: All parts of the organization, to include structure, technology, and people, must work together. Experiential Learning: The learners' experiences in the training environment should be the kind of human problems they encounter at work. The training should NOT be all theory and lecture. Problem Solving: Problems are identified, data is gathered, corrective action is taken, progress is assessed, and adjustments in the problem solving process are made as needed. This process is known as Action Research. Res earch. Contingency Orientation: Actions are selected and adapted to fit t he need. Change Agent: Stimulate, facilitate, and coordinate c oordinate change. Levels of Interventions: Problems can occur at one or more level in the organization so the strategy will require one or more interventions.
Quality of Work Life uality of Work Life (QWL) is the favorableness or unfavorableness of the job environment. Its purpose is to develop jobs and working conditions that are excellent for both the employees and the organization. One of the ways of accomplishing QWL is through job design. Some of the options available for improving job design are: Leave the job as is but employ only people who like the rigid environment or routine work. Some people do enjoy the security and task support of these kinds of jobs. Leave the job as is, but pay the employees more. Mechanize and automate a utomate the routine jobs. And the area that OD loves - redesign the job. When redesigning jobs there are two spectrums to follow - job enlargement and job enrichment. Job enlargement adds a more variety of tasks and duties to the job so that it is not as monotonous. This takes in the breadth of the job. That is, the number of
9
different tasks that an employee performs. This can also be accomplished by job rotation. Job enrichment, on the other hand, adds additional motivators. It adds depth to the job - more control, responsibility, and discretion to how the job is performed. This gives higher order needs to the employee, as opposed to job enlargement, which simply gives more variety.
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CHAPTER 2
STUDY OF THE INDUSTRY
11
2.1 Industry Profile: At that time, though, the use of leather (in its crude form) was more for the purposes of protection than fashion. As times changed and technology developed, we learned how to preserve the material better, soften it, and dye it in vivid colors. When on one hand the strength, durability, and versatility of leather made it very popular, on the other the number of animals killed to manufacture the products and the pollution created by the industry raised many eyebrows. This led to the hunt for alternatives to leather. The Market
Artificial leather looks and feels like natural leather, but is made on a fabric base rather than from animal skin. The fabric, due to its leather-like finish, acts as a substitute for leather and is fast replacing it in many industries such as footwear, upholstery, upholstery, and automobiles a utomobiles.. Today, the leather alternatives market in India and abroad is witnessing good growth, and the demand is expected to further intensify in the future. According to Rishabh Jain of RishabhVelveleen, ³In the next few years, this industry is expected to boom, thanks to better technology, animal cruelty issue, pollution, etc.´ In comparison to the demand, the current supply of synthetic leather lags far behind, especially in the domestic market.´ Says Jain, ³Currently, nearly nine to 10 times of what is being produced domestically is imported from China.´ Moreover, of the synthetic leather that is produced in India, only about 15 to 20 percent is exported; the rest is used for domestic consumption. This demand±supply gap coupled with the fact that synthetic leather is fast replacing natural leather from various industries is opening doors for more entrepreneurs in this sector. In India, the market for synthetic leather is highly unorganized; there are only a
12
handful of players in the organized sector. As Jain puts it, ³At present there are 10 leading players constituting the organized market, and about 150 to 200 small or medium level players who cater to the local market.´ Among the major names are MayurUniquoters, RishabhVelveleen, and Manish Vinyls. Indian synthetic leather is exported to European countries and also to t o the US. The Business
Though many alternatives to leather are now available, most synthetic leather is made from PVC and PU. On the basis of the process used, it can be classified into four types. A process called µcalendering¶, in which the PVC sheet is laminated to a fabric, makes the cheapest. ³The other three are basically coating processes in which there are three categories ± 100% PVC, semi-PU, and 100% PU,´ elaborates Jain. ³In semiPU, there is one layer of PU mixed with a layer of PVC and then the skin is transferred to a fabric. In 100% PU, there will not be any PVC but only layers of PU.´ Besides these, there is another type of artificial leather known as split leather or pleather. However, its inclusion in the synthetic leather category is debatable as it does not use a fabric base, but is manufactured from the second layer of skin (the first layer is used for making natural leather) obtained from animals. Compared to PVC, PU leather cloth is more flexible with a higher tensile, tearing, and bursting strength. strength. Due to this, PU leather cloth has an advantage when used in making products with high stress tolerance like shoes and luggage bags. Another difference between PU and PVC leather cloth is that the former is washable, can be dry-cleaned, and allows some air to flow through. On the other hand, PVC leather cloth does not breathe and cannot be dry-cleaned, because that can make it stiff. Annual requirement for synthetic leather Footwear industry - 2,60,00,000 meters Automotive industry - 3,20,00,000 meters Furniture industry - 1,10,00,000 meters Luggage industry - 2,50,00,000 meters
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The synthetic leather is made into different thicknesses depending on the end use. ³If you take shoes, the inner lining is around 0.6 mm and the outer cover is 1.3 mm. If you take furnishings, it would be 1 mm. The general range of synthetic leather starts from 0.6 mm to 1.4 mm. For the purpose of clothing, it can go as low as 0.4 mm, which is rare. The thickness depends on how much PU or PVC you are coating,´ Jain adds. The companies manufacturing synthetic leather sell the product under a brand name of their own. Leather Vs Artificial Leather
The synthetic leather industry is now on a high growth trajectory. One of the reasons for this is the high-pitched campaign against cruelty meted out to animals in the leather industry. This has resulted in growing awareness for an alternative to leather. The level of pollution (both air and water) created by tanneries has also led to an increase in the popularity of alternative leather. Besides this, a huge demand±supply gap exists in the natural leather industry. This, coupled with the high price of leather, has also been a boon in disguise for the industry. On its part, synthetic leather is cheaper and has a lower manufacturing cost. Earlier inferior technology was one factor holding back the growth of the artificial leather industry. However, with technological advancements, synthetic leather being produced now is much smoother, looks similar, and feels like leather. The fabric is versatile and is fast replacing leather in a number of industries. industries. Production Production Process P rocess
Synthetic leather can be made from several processes. Some of the common ones include direct coating process; transfer coating process, and wet process. Direct coating process: This was the original technology t echnology used used to manufacture artificial cloth. In this process the plastisol was directly coated t o a woven fabric before passing through the oven and then embossed. However, the end product made from this
14
process had limited use in industries such as the bag and luggage industry. Transfer coating process: In this process the coating is done on a release paper and then the film is released and laminated la minated on to the fabric, usually knitted fabric. The end product from this process can be used in several industries such as upholstery, shoes, bags, etc. Wet process or coagulation: This process is used for producing PU cloth. The fabric is dipped into a bath of PU and the PU is then impregnated into the fabric. Split leather is also made using this process. Challenges
One of the major challenges for this industry is competition from Chinese synthetic leather. China is one of the major producers of synthetic leather, and up to 10 times the amount produced domestically in India is imported from China. This is due to two t wo reasons ± one, the demand for synthetic leather is high in India compared to the supply, and two, India still does not produce good PU leather cloth, which accounts for major imports. Another challenge is the sourcing for PU. Says Jain, ³There ar e not many good manufacturers for PU resin. It is generally imported from Italy or China.´ This also adds to the manufacturing cost of artificial leather. In India, another problem is that there is no communication platform for manufacturers. No association or industry body exists either. Besides these, this business also requires several clearances from the government such a pollution certificate. There are other quality certifications also, such as the ISO 14000 and ISO 9000, but they are not mandatory.
Current Scenario:
India accounts for approximately two percent of the world trade in leather and leather products. To be on the fast track of growth and to have a larger cake in the international business, continuous technology up gradation and modernization are the most powerful driving forces like in any other manufacturing sector that dreams steady growth and expansion. With this being the primary objective, India's Council for Leather Exports (CLE) has taken a number of initiatives. To propel the combined efforts of the tanning and manufacturing sectors, the Central Leather Research
15
Institute (CLRI), the Fashion Technology and Development Institute and CLE as the main cog in the wheel, an action plan has been chalked out. The growing international demand apart, the action plan also suggested measures to face Indian leather's industry's major competitors in Asia: China, Indonesia, Korea and Taiwan. To boost the country's leather industry, the Indian federal government has earmarked aRs 4.5 billion (US$ 95 mn) grant to be made available to the industry over a span of five years but that's not without any string. The fund availability is conditional upon the sector's attracting an annual investment of Rs 2.2 trillion. In 2002, investments in the leather sector stood at Rs 410 million. Footwear and their components account for about 25 percent of India's total leather products exports. These two markets also offer Indian leather industry vast scope for exports exports of saddler and a nd harness. Besides the European market where Indian leather products already enjoy a strong presence, the US too is emerging as a very strong and promising export destination for Indian leather industry. US today accounts about 25 percent of a massive US$ 96 billion global trade in leather and leather products. The importance of European market could be gauged by the fact three major EU countries-Germany, Italy and UK- today accounts for approximately 42-45 percent of leather and leather products exports from India. These three countries together exported leather products worth US$ 814.82 mn in 2001-02 against country's total leather and leather products exports valued at US$ 1.93 bn.CLE is trying to make a dent in new markets. Focus countries include the Latin American countries, Israel Israel and Japan. Japan is the fifth largest largest importer of leather & leather products in the world. Japan now imports over US$15 million worth leather and leather products from India. In fact, between 1998-99 and 2001-02, India's exports leather products to Japan have more than doubled. According to the latest available provisional data, exports in the first 10 months in fiscal 2002-03 to Japan stood at US$ 7.53 mn against US$ 7.30 mn during the comparable period of 2001-02. CLE aims at raising India's share in Japan's total imports of leather and leather products to 2 percent by 2005-06 from the current level of 0.5 percent which in other words means forex earnings to the tune of US$ 70 mn in next three years from the 2001-02 level of over US$ 15 mn.
16
new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards zero (perfect competition). The existence of barriers to entry. The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non performing firms can exit easily. y
Economies Economies of product differences
y
Brand equity
y
Switching costs or sunk costs
y
Capital requirements
y
Access to distribution
y
Customer loyalty to established brands
y
Absolute cost advantages
y
Learning curve advantages
y
Expected retaliation by incumbents
y
Government policies
y
Industry profitability; the more profitable the industry the more attractive it will be to new competitors.
The Intensity of Competitive Rivalry
The intensity of competitive rivalry is the major determinant of the competitiveness competitiveness of the industry. Mayur has following foll owing competitive advantage. advantage. y
Sustainable competitive advantage through innovation
y
Competition between online and offline companies;
click-and-mortar -v-
slags on a bridge y
Level of advertising expense
y
Powerful competitive strategy
y
The visibility of proprietary items on the Web used by a company, which can intensify competitive pressures on their rivals. How will competition react to a certain behavior by another firm? Competitive rivalry is likely to be based on dimensions such as price, quality, and innovation. Technological advances protect companies from competition. This applies to products and services. Companies that are successful with introducing new technology are able to charge higher prices and achie ve higher profits, until competitors imitate t hem.
18
The Threat of Substitute Products or Services
The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives: y
Buyer Buyer propensity to substitute
y
Relative price performance of substi s ubstitute tute
y
Buyer Buyer switching switc hing costs
y
Perceived level of product differentiation
y y
Number of substitute products available in the market Ease of substitution. Information-based products are more prone to substitution, substitution, as online product can ca n easily replace material product.
The Bargaining Power of Customers (Buyers)
The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. Bargaining power in Mayur is high because of the following reasons y
Buyer Buyer concentration to firmconcentration ratio
y
Degree of dependency upon existing channels of distribution
y
Bargaining leverage, particularly in industries with high fixed costs
y
Buyer volume
y
Buyer Buyer switching costs relative to firm switching switchi ng costs
y
Buyer Buyer information infor mation availability
y
Availability of existing substitute products
y
Buyer Buyer price pric e sensitivity
y
Differential advantage (uniqueness) of company products
The Bargaining Power of Suppliers
The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources. The suppliers power in the case of Mayur is high due to following reasons: y
Supplier Supplier switching costs relative to firm switching switchi ng costs
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y
Degree of differentiation of inputs
y
Impact of inputs on cost or differentiation
y
Presence of substitute inputs
y
Supplier Supplier concentration to firm concentration ratio
y
Employee solidarity (e.g. labor unions)
y
Supplier competition - ability to forward vertically integrate and cut out the buyer
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CHAPTER 3
ORGANIZATION STUDY
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What is an organization?
Organization is a tool used by people to coordinate their actions to obtain something they desire or value- that is t o achieve their goals.
Organization Organization Theory-
Study of how organization function and how they affect and are affected by the environment in which they operate.
Organization Design-
The process by which managers select and manage aspects of structure and a nd culture, so than an organization can control c ontrol the activities necessary to achieve it¶s goals.
Organization Organization Structure-
Organization Structure is the formal system of task and authority Relationship that control how people people coordinate their action and use resources to achieve a chieve organizational goals.
Organization Culture-
The set of shared values and norms that controls organizational members interaction with each other and with suppliers, customers and other people out side the organization.
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Organization Study : 3.1 Company Profile : MayurUniquoters is a reputed organization that excels in the manufacture and export of all types of PU and PVC based synthetic leather (Artificial Leather). Established in 1992, Mayur has successfully established itself as a reliable and trustworthy organization. The company is committed to developing outstanding quality products with widest choice.
MayurUniquoters , a high - tech enterprise has been a resounding success in the
field of superior quality synthetic leather in India. Driven by a vision to manufacture world-class products for the leather connoisseurs and the trendsetters of the time, Mayur was born out of high levels of competence, commitment, stringent quality
control measures and value addition. Thus a team of professionals planted a great seed of possibilities. Today Mayur has made its mark as a manufacturer of PU, PVC and PU-PVC Synthetic Leather under the seasoned guidance and support by a unit of highly qualified engineers and technocrats who believe in delivering the best always.
Mayur¶s Mission And Vision: Mission: ³Improving life¶s comfort and aesthetics of our customer¶s homes,
offices, vehicles and dressing.´ We will achieve this: By being focused in every chosen business sector, and lead
the way. By being true to the laid down process. By continuous up-gradation of our human resources. By committing to safety, health and environment environment to enrich quality of life.
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We Value-High Integrity and standards. Respect for each other, Passion,
Teamwork. Vision: y
Make each employee to think decide to act by themselves.
y
Motivated innovative satisfied employees who own each machi ne.
y
To maintain perfect human machine work environment system for continuous improvement.
Helps operators to: y
Understand their equipment. equipment.
y
Get multi skill training.
y
Discover and come out with new ideas.
y
Enjoy new experience.
y
Work as one team one family.
Policy: y
Maximize overall equipment effectiveness.
y
Establish positive work culture.
y
Organize a work place to t o prevent losses.
y
Involve all employees to work as one team.
Goals: y
Productivity- increase by 40%
y
Equipment- zero breakdown
y
Quality-zero defects
y
Safety-zero accidents
y
Delivery-100% on time
y
Cost-reduce by 10%
y
Morale-suggestions per month.
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CERTIFIED
AS
AN
ISO
9001:2008,
ISO
14001:2004 AND
OHSAS
18001:2007. ISO 9000
Set of international standards on quality management and Quality assurance, critical to international Business .ISO 9001 series standards, briefly, require firms to document their quality-control systems at every step (incoming raw materials, product design, in-process monitoring and so forth) so that they¶ll be able to identify those areas that are causing quality problems and correct them. ISO 9000 Registration Process:
When an organization feels that its quality system is good enough, it may ask an accredited accre dited registrar registra r or other third party audit team tea m for pre-ass pre-assessment. essment. The final audit begins with a review of the company's quality manual, which the accredited registrar or third party audit team typically uses uses as its guide. The audit team checks to see that the documented quality system meets the requirement of ISO 9000 and that the organization is practicing what is documented. When the registrar is satisfied with the favorable recommendation of the audit team, it grants registration and issues a registration document to the company. ISO 14000:
ISO 14001 is the series of the 14000 standard. ISO 14000 - A set of international standards for assessing a company¶s environmental environmental performance Standards in three major areas 1. Management systems 2. Operations 3. Environmental Environmental systems 1. Management systems:Systems development development and integration of environmental responsibilities into business planning 2. Operations: Consumption Consumption of natural resources and a nd energy 3. Environmental systems: Measuring, assessing and managing emissions,
25
effluents, and other waste FROM THE DESK OF CHAIRMAN
MayurUniquoters Limited was established in 1992 by the present Chairman and MD, Mr. S. K. Poddar. Since it's inception the basic Business driving force was a continuous urge to excel through the distinction of producing Quality Products and to be the Leaders.
LATEST PLANT: IMPORTED FROM MATEX, ITALY
With a large network of premium products for Footwear, Apparel, Luggage, Furniture, Leather Goods, Upholstery and Automotive Industries, the guiding principle of this enterprise has always been customer delight, beyond customer satisfaction. And since the limits of technology can be challenged by the vitality of progressive thinking, with constant research and development, Mayur marches on in its global pursuit of opening up a new horizon to the Synthetic leather World. Making use of the best technologies and raw materials available in the world, having implemented the best management practices and always striving to be the best in the business has been the principle of Mayur since it¶s inception.
MONITORING, ANALYSIS, DISPLAY AND COMMUNICATION PANEL
Mayur has over a period of time developed and established it's set of product recipies and customer support system. The present Chairman and MD, Mr. S. K. Poddar, established MayurUniquoters Limited in 1992. Since it's inception the basic Business driving force was a continuous urge to excel through the distinction of producing Quality Products and to be the Leaders.
CLIENTS: Mayur has following customers of different sector in domestic as well as
outside.
y
AUTOMOTIVE OEM¶s o
OVERSEAS
26
o
y
DOMESTIC
REPLACEMENT MARKET
y
FOOTWEAR OEM¶s
y
Chrysler
y
Mercedes-Benz
y
GM
y
BMW
y
Ford
Apart from above Mayur are exporting to Europe, Middle East, South Africa, Sri Lanka, Malaysia and Mauritius etc.
DOMESTIC y
MarutiUdyog Limited
y
Tata Motors
y Honda Scooters & Motorcycles India Ltd. y HMT Tractors y Hero y
Motors
Escorts ± Yamaha
y Honda SIEL Car India Ltd. y
Mahindra & Mahindra
y
Swaraj Mazda Limited
y
Punjab Tractors Limited
y
Sutlej Motors Limited
y
Railway Coach Factory, Kapurthala
y Hero Cycles y
Sonalika Tractors
REPLACEMENT MARKET
Hideler
Ovion Seating Elegant Auto craft
27
Stanley Seating Dolphin Saddles Inc. Art Auto APN Automotives
Why MayurUniquoters: Mayur in the face of tough global competition and in its pursuit for being "Worldclass´ has been cultivating a new world of artificial leather with an aid of sophisticated specialized technology in every step of eac h operation. Mayur has responded to changing customer needs of the hour by maintaining stateof-the-art equipment and facilities like a modern 4 Head Italian Coating Line from Matex, a fully new coating line, Embossing Machines, Printing machine, Sueding Machine, Dry and Wet Tumbling Machines. Automated lab with lab-coater from Werner Mathis, Switzerland, SATRA and Bally Flex Testers and other Laboratory equipment for quality control. At Mayur the world renowned process of ³TRANSFER RELEASE PAPER COATING PROCESS " is used for Synthetic Leather Manufacturing, Quality & excellence are natural outcome. The coating line from Italy has special features like electronic thickness & coating weight controllers and double ventilation ovens for than control with precision the work in progress. The company regards product and development as a pivotal part of increasing growth and significant emphasis laid on it with massive investments in modern technologies and training, to meet the new age requirement of giving synthetic leather products a natural feel. It has a complete R&D cell with dedicated people having accumulated experience to render greater satisfaction and applicability to the products, which are all set to storm stor m the competition globally. globally.
QUALITY LABS
R&D involves creating new or improving existing Products or processes in a commercial facility or production environment; e.g. test production from an existing
28
or upgraded line. It usually results from experimental production or experimental processes carried out either in conjunction or simultaneously with excluded commercial work Furthermore, basic and applied research can also occur in the shop floor environment. Experimental development is work undertaken for the purpose of achieving technological advancement for the purpose of creating new or improving existing products
or
processes,
including
incremental
improvements.Mayuruniquoters always strives to improve product quality and reliability. To meet the ever increasing and ever changing demands of our valued customers.In R&D Labs, before producing any product, Mayur always test its all attributes as per the international product standards. Fully Equipped Laboratory:
The Company possesses a fully automated lab, capable of testing nearly all the properties artificial leather should have, for different segments s egments and applications.
First Coating Line (Matex):Since: 1992
From MATEX s.r.l., Italy with special features like electronic programmable thickness controllers and double ventilation ovens. 5 Million Linear Meters/ Annum (Plant Capacity) The complete maching has been put on UPS for continuous, defect free working. Second Coating LineSince : 2004
Latest state of the art imported Taiwan coating line (Yang sing). Three head coating PU line with three printing heads and three laminators. 6 Million Linear Meters/ Annum. The complete maching has been put on UPS for continuous, defect free working. Third Coating Line (Matex) Installed (end of March 2008)
Commercial production started Latest state of the art imported machine from MATEX Italy. 6 Million Linear Meters/ Annum. The complete maching has been put on UPS for continuous, defect free working.
MAINTENANCE AND UTILITIES
29
Utilities & tools are managed and maintained on regular basis for quality control and trouble free working. Tools are available all the time for all levels of maintenance giving gi ving a supportive hand to company production. production. Maintenance and tool room are inevitable part for any unit's smooth and efficient working, hence, Mayur using its experience designed a highly equipped tool room and maintenance floor which provides round the clock service. Tool room is equipped to meet the requirements of Total Productive Maintenance.
Efficient and experienced engineers use the tools for instant recovery and maintenance giving a cutting edge support for top level quality control applied by the company. Maintenance are taken on regular basis for preventive purpose scheduled in such a way that machines work more efficiently during the long run of production. A complete team of qualified and skilled persons is dedicated to maintenance task in all
shifts
including
mechanical,
electrical,
electronics
and
instrumentation
engineering. TEAM AND MANAGEMENT
MayurUniquoters Limited was established in 1992 by the present Chairman Chair man and MD, Mr. S. K. Poddar. Since the inception the basic Business driving force was a continuous urge to excel through the distinction of pr oducing Quality Products and to be the Leaders. Mr. ManavPoddar has initiated TQM practices, targeting the highest levels of efficiencies in the whole of business process including product innovation, better customer responsiveness as well as operational and plant efficiencies. He has led the team of MayurUniquoters to the best of Lean Management Principles. Continuous efforts since being has given us a name in the market to reckon with and Mayur have become the undisputed Quality Leader. We strive to be a World Class
30
Company and the most admired one in this sector. TEAMS
Following the basic concept of TQM i.e. Involvement of People all activities are managed by identified teams. For all major processes their performance is measured and monitored. Presently the participation of workers in various activities through teamwork is around 60 %, which is targeted to 75 % by the end of 2008. SOME OF THE CENTRAL TEAMS ARE Non Conformance Review Team- a cross functional team meeting daily to review
all process product trends, Corrective action / preventive pr eventive action 5 S and Kaizen Teams± Relatively new teams, in the process of grooming Though
they have successfully implemented 5 S, the big challenge given to them is the Kaizen Initiative. TS 16949 Team - A newly formed team as a part of the Top management¶s initiative
for certifying our organization with TS 16949 by March 2009. HR & Administration, the People's Team- This team is involved in managing the most
precious of resources, the Human Resources. They are also an integral part of 14/18 Team. All training and development activities of the organization are planned and executed through them. t hem. QUALITY ASSURANCE ACTIVITIES AT MAYUR
There are three fully equipped labs. ²
Raw Material Testing QA Lab
²
Finished Goods Testing Lab
²
R & D Lab
QA Labs are the heart of MUL manufacturing activities. Qualified, experienced and dedicated staff carries out daily routine testing work. Lab is fully equipped with test facilites like Brookfield¶s Viscometer, ³Satra¶ flex machine, cold chamber,
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hydrolysis test oven etc. Raw Material at all stages are tested as per the defined Quality Plan. Finished goods are dispatched to our valued custo c ustomers mers after complete inspection at inspection tables and through checking at physical testing lab. The records for traceability are maintained on ERP and are available on-line for ready reference. Lot of emphasis is given on testing as per world-renowned car manufacturer¶s specifications such as JASO, GM etc as per theircustomer¶s requirement. All upholstery material is being tested as per BIS, BS specs as per requirement as applicable and as per the requirement of customer. With the help of ERP module- electronic order review is done and shade code numbering and traceability is followed. Shade code are given for every shade party wise and record of master sample is maintained. Maintaining traceability from raw material to finished store is our endeavor at Lab.
TOTAL QUALITY PEOPLE
We value and believe in people, people, the Total Quality People (TQP) with with cultural quotient and they are the driving force of all the milestones milestones set
QUALITY CONSCIOUSNESS
Recently tied up with an American company TBM Inc. for TQM consultancy for three years. Already taking consultancy on TQM from a firm fir m called QEMS Ltd. Company is ISO 9001:2000 Certified since Year 2001. Planning to be ISO 14001 & O HS Certified by March 2007 ACHIEVEMENTS &ACCOLADES : ERP IMPLEMENTATION ERP System Implementation-
ERP is now a part and parcel of all activities at MayurUniquoters. Like most organisations we too at Mayur faced initial hiccups but with time and constant persistence the employees were able to understand and also found that it is a better way to stay organised and improve productivity. Be it order enquiry, order review,
32
or processing; Product / Release paper Inspection and checking for Quality or dispatch, dispat ch, all major areas have ha ve now been linked through ERP. With the steady progress in these areas and accruing benefits there is a lot of enthusiasm amongst employees and Management alike to link all the t he remaining areas. ERP linkage has given Mayur a definite edge which means a lot in this competitive environment, for MayurUniquoters it translates into -faster Communication, within and outside the works including customer communication faster and accurate of review of order and on line validation of all components of product improved planning with on line availability of consumption patterns and stocks on line availability of validated product and process standards at work station on shop floor, ensuring product traceability till dispatch stage, which in-turn ensures better process control product and process non-conformance non-conformance trend identification and control detailed defect analysis enabling timely Corrective or Preventive Preventive actions ERP implementation has taken us one step ahead in our TQM initiative. ERP advantages to Mayur are not only recognized by Mayur but the Rajasthan (State) Chambers of Commerce and Industry and CIOL, Hyderabad for its business advantages and they have chosen MayurUniquoters Ltd. for ³IT Power User award´ in Dec. 2005.
PRODUCTS : -Mayur has following types of products in different s egments:
FOOTWEAR
Mayur is an established and renowned name in footwear sector for it¶s synthetic shoe upper, lining and socking materials. We offer synthetic leather for footwear application, which replicates high-end genuine leather. Our products are technically perfect and follow SATRA specifications. Our versatile range of grains, finishes and colors offers you variety of products is PU and PVC.Our shoe upper materials satisfy need of the customers as far as flex, thickness, finish and feel is concerned. our shoe linings in PU/PVC are highly in demand we follow all European standards of chemical testing in footwear items.
33
AUT AUT
M
T
i
E
approved supp lier to var ious automotive companies li e M R
SWAR AJ AJ TR ACTO ACTOR S, S,
ONDA SCOOTER , and
ONDA SIEL CAR S etc. We
have been successfu ll servicing them by supp lying problem free mater ials, s tr ictl y as per their de d elivery schedu le. Cars/t o-wheeler seating has been g iven a new look and def inition by mayur
34
UPHOL UPHOL TE
/ URNISHING
The latest range of PU and PVC upho lst ery / furnishing items are creating news in
the markets in India and Overseas. Our an imal pr int furnishing items are the mos t adorab le products in PU. Non-Woven based and po lyest er fabr ic based upho lst ery products represent the latest and fashionab le items. We take ut most care of Phys ica l
ties like Fire proper ty and performance of our furn ishing produc ts. The proper ti R es esistant, Anti funga l, Anti bacter ial etc. give an extra edge to our produc ts over the competitors.
GARME GARMENTS
Mayur is an established and renowned name in Garments sector for it s synthetic Garments mater ial. We offer syn thetic leather for Garments application, which replicates high-end genu ine leather. Our produc ts are technically perfect and follow
international specif ications. Our versa tile range of gra ins, f inishes and colors offers you var iety of produc ts for readily emerging leather garment fashion industry.
35
LUGGAGE UGGAGE / LE LEA ATHER GOODS
We have a strong presence in the leather goods marke t, and offer a range of produc ts for wa llets, purse, por tfolio and comp limentary items. Mayur successfu lly replaced
tif icial leather. genuine leather with it s ar ti
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SPOR TS GOODS
Mayur is an established and renowned name in Spor ts Goods for it s genuine leather replacement mater ial. We offer syn thetic leather for Spor ts Goods, which replicates high-end genu ine leather. Our produc ts are widely accept ed and meet international standards. Our versa tile range of gra ins, f inishes and colors offers you var iety of products for readily expending leather Spor ts Goods industry. PRODUCT PRODUCT DE EL ELOPM OPME ENT & CUST CUSTOME OMER SE SERVICE RVICE
Since produc t development is the backbone of any organ i ation to push to the
37
international height, Mayur is equipped with a Werner Mathis Lab coater to help in making A-4 size lab samples, Spectophometer for accurate and computerized color matching. Apart from this, the Bally and SATRA flex machines, Abrasion-TensileLight fasteners-Bursting Strength and flammability Texters help in giving key inputs for development. The latest international standard machinery, keep Mayur ahead of competition as an icon of a leader in the industry of artificial leather. The best raw material procurement at low cost and a chain of good supplier base since its incorporation, have also accounted for its goodwill to develop quality products in keeping with paradigms in demand worldwide.
CUSTOMER SERVICE
Mayur is objectively a customer-driven enterprise. It encouragesto have a single point solution to any problem related with any of its products in prompt, effective and systematic customer query resolution system. It aims at giving customized technical solutions and support to the customers, which would improve their profitability. Mayur has developed its unique Customer Relations & Service department (CRS) into an IT-driven orientation for profitable product mix information, quality improvement indicator, troubleshooting at customers and, new product innovations, new end use applications and immediate dispatch information with order status. At Mayur, CRS has set an example, which is the driving force of the whole marketing operations.
38
3.2 Organi Organi
ati ati n Structure& Chart:
39
MayurUniquoters has Functional Structure in the organization. Employees within the functional divisions of an organization tend to perform a specialized set of tasks, for instance the engineering department would be staffed only with software engineers. This leads to operational efficiencies within that group. However it could also lead to a lack of communication between the functional groups within an organization, making the organization slow a nd inflexible. As a whole, a functional organization is best suited as a producer of standardized goods and services at large volume and low cost. Coordination and specialization of tasks are centralized in a functional structure, which makes producing a limited amount of products or services efficient and predictable. Moreover, efficiencies can further be realized as functional organizations integrate their activities vertically so that products are sold and distributed quickly and at low cost. For instance, a small business could start making the components it requires for production of its products instead of procuring it from an external organization. But not only beneficial for organization but also for employees faiths.
Span of Control
Span of control refers to the number of people who report to onemanager or supervisor. Span of Control is following types: 1. Wide Span of Control: A wide span of control results in a flat organization² that is, a large number of employees reporting to one supervisor. 2. Narrow 2. Narrow Span of Control: A narrow span of control results in a tall organization, in which a small number of employees report to asupervisor, necessitating a larger number of supervisors. Mayur has Narrow Span of Control. All the subordinate have to report to concert department head for their daily report. If the supervisor-subordinate relationship requires frequent interaction, the span of control must be narrow. If interaction is infrequent,the span of control can be wide. For example, the hotel controllermust review regularly the status of collections coll ections and payments with staff.
40
Advantage & Disadvantages of Functional structure:
The most important strength of a functional organizational design isefficiency. The performance of common tasks allows for work specialization, which increases overall productivity. Workers develop specialized skills and knowledge more rapidly. Training is easier because ofthe similarity of tasks and the resulting opportunities for inexperiencedworkers to learn from experienced workers. This helps new employees quickly learn the kinds of behavior that lead to success and promotion. Coordination of activities within functional departments is easier than in more broadly based organizations.
A functional organization fosters efficiency, teamwork, and coordination of activities within individual units. However, the functionalorganization¶s most important strength is also the source of its great-est shortcoming. The success of a hotel as a business is measured byits overall performance and not by the performance of any one department. A hotel with spotless guest rooms will not be successful ifguests¶ front desk experiences are not up to par. Even if guests¶ dining experiences are superb, the hotel will fall flat on its face if its roomsare dismal. It is sometimes difficult for each department to fully appreciate its role in the overall success of the organization. It is vitalthat each department keep in mind the hotel-wide goals of customerservice and profitability rather than focus narrowly on its own concerns. Some means must be found to coordinate the activities of functional departments and to set hotel-wide strategies and goals. A hotel¶sfunctional organization demands strong leadership. New initiatives in hotels often require cooperation and coordination between functional departments. New ideas tend to be stillbornif department heads lack a hotel-wide perspective or have difficulty coordinating their activities. The tendency to concentrate on doingthings right often overshadows the organization¶s ability to do the rightthing.
Ownership Pattern:
The delegation of authority creates a chain of command, the formalchannel that
41
defines the lines of authority from the top to the bottomof an organization. The chain of commandconsists of a series of relationships from the highest position in the organization to the lowest. The chain of command specifies a clear reporting relationship for each person in the organization and shouldbe followed in both downward and upward communication. When designing an organizational structure, managers must consider the distribution of authority. Defined simply, authority is the organizationally sanctioned right to make a decision. Authority can bedistributed througho t hroughout ut an organization or held in the hands of a fewselect employees. Decentralizationis the process of distributing authority throughout an organization.
In a decentralized organization,an organization member has the right to make a decision without obtaining approval from a higher-level manager. Centralizationis the retention of decision-making authority by a high-level manager.
MayurUniquoters Ltd. follows Decentralization Authority. All the decision-making problems are discuss with all the l evel of organization.
Advantages of Decentralized Authority:
Decentralization has several advantages. Managers are encouragedto develop decision-making skills, which help them advance in theircareers. The autonomy afforded by this style of operation also increasesjob satisfaction and motivation. When employees are encouraged toperform well, the profitability of the organization increases.
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3.3 Functional Departments: ers Lt d. has following functional dep artm ents MayurUniquot er
1. Raw Mat er erial Store Dep artm ent 2. Research And Development D ep artm ent 3. Chemical Lab Testing D ep artm ent 4. Physi cal Lab T esting D ep artm ent 5. Elec t ronic Dat a Processi ng D ep artm ent 6. Production Dep artm ent 7. HR Dep artm ent 8. Marketing D ep artm ent 9. Finance Dep artm ent
43
1. Raw Material Store Raw M at er erial Store sto res all the raw mat er erial required like chemi cal s, f abric, release p ap ers et c. Pu rchase departm ent makes a deal with the supp liers. When raw mat er erial comes to the company first gat e ent ry procedure like check ing all ekeeper informs to the maint enance enance the documents, all other documents. Gat ekee departm ent for th e receiving of the order.
Fabric is three typ es 1.
ed f abric: It Knitt ed
is a thin layer and have elasti city
2. Woven f abric: It is the normall y used f abric. 3. Non-w oven f abric: It is th e thick la ck layer of the f abric. 80% f abric comes f rom import and rest 20% comes f rom Gujara t (India). Import ed ed count ri es are USA, M alaysia, Korea , and Germany. Chemi cals are diff eren erent typ es but most ly used are: 1. DOP: It comes f rom Malaysia, Germany, and USA. BASFA is the main supplier f rom USA. 2. DINP: It is imports f rom Korea. 3. CPW: It comes f rom Korea . LG chemical is the only supplier. 4. Resin-124: Resin also comes f rom Korea Release pap er is import ed ed f rom Hong
Kon g.
erent typ e of release pap er Diff eren
ells the imports acc ording to the customers requirements. Customer also t ell ed fo r their product so comp any h as to purc hase supplier which th ey h ave s elect ed
f rom that supplier only. Classifi cation of release pap er: y
ec Lint ec
y
Arjo
44
y
Binda/ Favini
y
Ajinomoto
y
Sapi/Warrini
y
Asani
Aft er er gat e p ass all the documents are checked and cont ainer send for weight. Aft er er weight cont ainer unloaded. R& D t ake akes s amples f rom the unloaded mat er erial
for t esting. R& D gi ves th e report within 24 hours. When all the conditions mat ch with the requirements then order is accept ed ed otherw ise it is re ject ed ed and aft er er approval f rom the higher authority mat er erial send back to the supplier. Raw Mat er erial Store receives order through Mat er erial Received And Insp ection Report (M RIR). MRIR consists all the requirements according to the customers.
Fabric inspect ed ed imm edi at el ely aft er er unloading and all the obs ervation show s through Fabric Insp ection Report. Raw Mat er erial Store basically stores f abric and unexp loit ed ed chemi cals. All the exp losi ve or f la lammable chemicals are stored in the Explosi ve Go down . Resin is
stored in another storer oom called Re sin Store. Explosive Go down have minimum t empera ture of 18rC. Suppliers of the chemi cal also check th e conditions require for th e mat er erial and aft er er app roval f rom them they export erial. their mat er Raw mat er erial stores acc ording to the Store Layout Plan and Chemi cal Layout
Plan. Store also consists KANBAN Bo ard first ent ry of mat er erial receiving done on the board. Raw Mat er erial Store follows FIFO method. According to the FIFO method first th at m at er erial issues which received first. Advant ages of FIFO m etho d:
ends to be nearer current market 1. The valuation of closing inventory t end
prices as well as at cost since closing stock consists of most recent ly acquired units,
2. Being based on cost, no u nrealiz ed profits ent er er into he financial results of the p eriod. 3. If prices of mat er erials or goods do not f luctu at e very f req requent ly, this
45
method is easy to operat e. 4. This method is realistic as it assumes that units sold or issued to production are in order of their purc hases. Limit ations of FIFO m ethod: lationar y market ref lec lect ed ed by rising prices), it 1. On a risi ng market (o r inf la reports lar ger profits becaus e th e lower priced lots were used fi rst.
2. Calculation becomes cumb ersom e if there are violent f luctu ations of prices of goods or mat er erial purchased. 3. In tim es of rising prices, charges to production are unduly low. 4. Comparison bet ween ween diff eren erent jobs execut ed ed by the concern as rendered difficult beca us e th e prior jobs might have us ed the supply of lower-
priced stock .
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2. Researchand Development Department Research and Development dep artm ent is th e first p rocessing dep artm ent of the company. Any order received f rom the customer is prep ared as a sample in this departm ent th en aft er er it is s ends for production. R & D dept. has t w o types of
process 1. New product development 2. Existing product developm ent Marketing dep artm ent receive th e order f rom the customer. If it is existing product th t hen a s amp le is p repared and sends fo r th e prod uction. And if it is new eam. They prepare samples product th en it is s end to new product development t ea acc ording to requirement of th e customer.
Marketing dep artm ent receive order through First Request Form. This for m include s th e requirements of the customer. Then aft er er R& D Dep artm ent formulation (P ast e) e) for the product. Formulation is the basic raw mat er erial for the product th en it sends th rough the sample prep aration process. A samp le is prep ared and it s ends to the lab for the t esting of the samp le. Lab dep artm ent gives the report of th e t esting. The t est reports s end to the marketing departm ent and shows to the customer. Aft er er approval f rom customer it s end for
production. If it is reject ed ed f rom the customer th en renew process. If it is th e new p rod uct development th en new p rod uct development t ea eam prep are the new p rod uct acc ording to the req uirement of th e customer. Samp le is prep ared and it sends for the t esting. Aft er er the approval f rom the customer
47
production process st ar arts. Sp ecifi c customer have specifi c requirement for th e product like BMW, actures fo llowing Mercedes, M ar uti, Tat a , B at a, Liberty et c. This company m anuf ac qualiti es of leath er: ² 100% PU ² PVC ² PU & PVC
All therequest f rom the customers is ent er er into the Product Mo dification request
Form. This fo rm include s area of the customer, color of the leath er , Design of the product , thi ckness, samp le t esting m ethod et c.
3.Chemical 3.Chemical Testing Lab Department It is a raw mat er erial t esting lab. They have 2 -3 raw mat er erial suppliers for eac h product. When company gets raw mat er erial f rom the suppliers it has a cert ain procedure for its accept ance ance. Aft er er getting t est report of th e raw mat er erial f rom the Chemi cal Lab t esting Departm ent Company accept the order. If the supplier f ails to fulfill th e requirements of the company it can reject th e orders. This lab is cont aining various machine s for t esting of chemical s and raw erial. Following are the machine s: mat er 1.Bomb Calorimeter Calorimeter:: It is use in the high t emp erature t esting. It does coal
t esting of raw mat er erial. 2.Digital Oil Bath : It is use in th e t esting of uniform t emp eratu re of raw
mat er erial. It check s color mig ration of finished goods. 3.Oven: 3.Oven : Low de gree raw mat er erial t esting is done in th e oven. 4. Decomposition Temperature Apparatus : It converts solid form of raw erial to vapo r form. The p rocess done through a chemi cal agent (this mat er company us e ADC for chemi cal agent ).
48
5.Magified Lens: Lens : It is us e for check ing uniformity of th e FG. 6. Hot Plate: Plate : Ch emical boiling t e st is d one through this machine. 7.Viscometer: 7.Viscometer: It check s Viscosity of the chemi cal. 8.Hammer: 8.Hammer : It converts powder form of raw mat er erial to t ablet fo rm fo r furth er
t esting. 9.Moister Meter: It t ests moist er er cont en ent in the mixture. 10.Refractrometer: 10.Refractrometer: Degree of purity of raw mat er erial is t ests by the help of ref rac ract romet er er. 11.Cold Chamber: Chamber : Cold chamber t ests raw mat er erial till -50rC. ( For ford motor
Company it t ests till -30rC). It also done acc ording the requirements of the customers. 12.Humidity Control Oven : sample of raw mat er erial is t ests for the duration of
168 hours at 90% humidity and 70% t emp erature or acc ording to the customer s requirements. 13.Spectrometer: 13.Spectrometer: It check s color relat ed ed properti es of the p rod ucts like light ne ness, darkness et c. Aft er er doing all these t esting if raw mat er erial suit able fo r the next p rocess the
order is accept. This departm ent is req uiring receipt of th e ent ry of the cont ainer, Party Report and Sample for the t esting.
49
4. Physical Lab Testing Department er manuf ac acturing a sample f rom the R & D It is a finished goods t esting lab. Aft er
Dep artm ent product runs through a syst ematic process of t esting. It gives a f eed eedback report to the R& D Dep artm ent about the product th en aft er er they issue order of mass p roduction. This departm ent cont ains various machine s for t esting of FG. Following are the Machine s, whichus e: 1.Breaking Load Machine : It t est we ight power of prod uct, w hich should be acc ording to the customer requirements. It is done through t wo types of
machines
(A) Comput er eriz ed t est er er Machine (B) Manual
Machine Machine : It t est t ear 2.Tear Machine: ear st ren rength of the product. 3. Martindale Abrasion: Abrasion : It check s abrasion and color t ran ransf er er of FG. 4. Crackometer: Crackometer: It t est rubne ss of the FG.
50
5. Belly Flexing Machine 6.Flexing Machine 7 Strata Flexing Machine 8. Color Matching Machine: Machine : It t ests the look and k and f eel eel of p roduct during diff eren erent eff ec ect of light. 9.Traverse Thread Counter Counter:: It counts verti cal and horizont al al thread in th e
products. If the prod uct f ails in the specific requirements it sent back to raw mat er erial departm ent.
5. Electronic Data Processing Department ers Lt d. have its own Soft ware ware development t ea eam. They develop MayurUniquot er ware in this lab. Every soft ware ware develops through an ERP their needed soft ware
procedure. They have license of Mi crosoft other than it they develop their own.
5.Kitchen Department Kit chen
departm ent prep are s the raw mat er erial for coating. It has t wo parts:
1. MB Dep artm ent 2. Mi xing D epartm ent MB (M ast er er Base) Dep artm ent p rep are s the color pigments for th e p roduct. Som e customers de mands specific color for that th ey alread y have st andard andard color so that they dont have any mismat ching bet ween ween requirements and
51
prep aration. The procedure for the Pigm ent prep ara tion is following: i. ii. iii.
Rinse the vessel thoroughly with p lasti ciz er given in information
Taken approved formulation supplied by R& D Weight req uired quantity of plasti ciz er at gi ven in th e formulation supplied by the R& D
iv. v. vi. vii.
Add required quantity of disp ersing agent as p er the solution
Rinse the mixer set up with plasti cizer gi ven in the formulation
Take it under sti rrer and st ar art sti rrer at lower speed Grad ually add required quantity of pigment powder as peer th e formulation
viii.
Aft er er complet e addition sti r foe at least another 10 min so all th e
ingredients are p roperl y mixed ix. x. xi. xii. xiii.
ace More th e grinding before grinding check grinding roll for clean surf ace Use only clean vess els
Take the grinding at least t wo times Check th e fineness of the grinding by H egmann Scale Aft er er comp leting grinding cover the drum as per th e procedure
identifi cation.
Kitchen process flow chart Receiving of BRM & production plan
Review of stock
Update KANBAN Board
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Paste preparation slip generate (ERP)
Vessel Cleaning
RM weighing & pouring as per mixing slip (Weighing Balance)
Weighing of ingredients & vessels
Mixing (Mixer)
Color Matching (Lab coater & spectrophotometer) spectrophotometer)
Grinding & Checking (Grinding machine)
Filtering & Checking
Filteration (Shade Checking)
53
De-
aeration (De-aerator)
Weighing & Supply to production Line
Return Paste Weighing Recorder (Register)
Mi xing dep artm ent mix all the raw mat er erial chemical s e.g. DOP, DI NP, Pigments and other chemi cal s. PPC dep artm ent prep are s daily planning for production. According to erial). Then it sends to the PPC repo rt R&D dep artm ent prep are s BRM (Bill of Raw Mat er Kit chen
th ey maint ain
KA NBA N
board basis on the report.
KA NBA N
Board show s the
availability of raw mat er erial req uired. BRM shows the requirements of the customer e.g.
Thickness, soft ne ne ss heat st ability et c. Based on the BRM executi ve make s Past e Prep ara tion Slip. PP S include th e st andard andard s et by the R& D for the parti cular product.
Kitchen: Mixing Process
Weighing a Clean Empty V essel
Ingredient W eighing (M -1)
Mi xing (Twin Shaft Mi xer) (M-2)
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Grinding (Triple Roll Mill) (M-3)
Color Matching & Checking (M-4)
De-Aeration
(M-5)
Checking of Paste (Finished Ready)
Weighing of Vessels with Ready Paste
Ready Material Waiting for Coating Line
6. Production Department actu ring order f rom the R& D Production Departm ent receive the manuf ac departm ent and st ar art p rod uction by following process :
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Production st arts f rom the design require on the leather According t o the design paper is imported and it st it st ores in the raw material st ore Papers send t o through
the inspection process All the defaulted paper are re ecte cted and other are sending t o next p rocess Then paper sends for unwinding. It st ores in the accumulat or for the emergenc
requirement . Accumulat or st ores 60-meter
paper. Af ter ter paper kitchen depart ment according t o the R D depart ment
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prep ares process past e and p ast e is t est ed ed th rough online t esting. Paper p ass es through first coating called p re sk in coating th en it p ass through oven, and then passing through cooling dr ums for th e next st age. Nex t st age is sk in coating. All the coating chemi cal s are prep are acc ording to the st andard andard set by R& D. Aft er er er for cooling to the cooling second coating it s end for heating to oven and aft er drum. It sends for thi rd coating called foam coating. And p ass through oven fo r
swelling support ed ed by chemical agent. Aft er er that it s end to cooling dr um. Then it pass es for adhesi ve coating and it h elp i n f abric lamination. Th en it p ass es to the pressu re machine and oven. Aft er er all th e GSM (Gram Per square) thickness is checked. The release p aper winded and the roll called Jumbo Roll. Released
paper can be us e 3 times. Jumbo Roll sends for inspection and inspection departm ent check for any f ault. Jumbo Roll convert into small R oll acc ording to
the customers req uirement. Packaging of the Roll dep ends on the thickness of Roll: THICKNESS
COLOR
0.4 to 1.15 cm p roduct
Whit e
1.20 to 1.75 cm product
Light Light Blue
1.80 & Above
Light Green
Coag Base
Pink
Trial Product
Yellow
22/4 Hock Black
Dark Blue
22/4 PDLR Black
Green Color
22/4 Gray Products
Whit e Color
erial send to the Finished Good store and f rom there it t ran ransports Packaged mat er
to the customers. Export m at er erial p acked in the other p acket also. PPC department:
It plans daily planning for the production. M ayurUniquot er ers Lt d. H ave three plants. All the three plants have s ame procedure for the production. PPC departm ent check the raw mat er erial available in the Raw Mat er erial Store and if all
57
the mat er erials are available th en they p lan for th e da y. D aily p lanning displays o n KA NBA N
Board nex t p lanning display only when previous planning complet ed ed.
Plant also have Policy Deployment M at rix, Prevent maint enance enance et c. PPC departm ent responsible fo r the following acti viti es:
M at er erials Planning Purchasing Raw Mat er erial Inventory Cont rol Coordinat e Customer Orders Finish ed Good s Inventory Cont rol Capacity Planning Scheduling M achine and People Inventory Cont rol
esources lanning
roduction lanning
emand anagement
ough-cut apacity lanning
aster roduction cheduling
etailed apacity lannin
etailed aterial lanning
aterial and apacity lans
hop loor ystems
58
urchasing
Fig. PP Process
Onli Online ne Lab. Lab. Test . Online Lab Testing done during the production process. A big sample paper
59
comes f rom each plant. Lab Executive t est the sample by following procedure: ² Big sample ² Cutting sm all samp le of the product ² Testing of those pi eces in the lab ² Prep arin g the report of th e p rod uct
Aft er er th e app roval f rom the onli ne t esting lab, prod uction st ar arts on lar ge s cale.
Maintenance Department: enance Dep artm ent keeps the rec ord of incomi ng and outgoing mat er erials. Maint enance
Incoming mat er erial called Raw Mat er erial. Raw M at er erial have cert ain p rocedure of t hrough gat e ent ry. Then sample is t aken accept ance ance fi rst it p asses th aken for quality check . R& D dep artm ent check s the quality and other requirement of the
mat er erial. Aft er er all the check ing it is accept ed ed and store in the Raw Mat er erial Sto re. Reject ed ed mat er erial send back through Purc hase Return Voucher to the supplier aft er er the dis cussion with the higher authority. enance departm ent work s on th e EOQ model. Th ey order before th e Maint enance reorder level. For the emergency requirements it have saf ety stock level. When
the sto ck reaches to the saf ety stock level it order for the raw mat er erial. It issues raw mat er erial to the p roduction dep artm ent through Issue Slip. Unus ed mat er erial return to m aint enance enance store by the production dep artm ent through Stock Re ck Return
Voucher. Maint enance enance dep artm ent classify the goods basis on the following: 1. ABC Anal ysis 2. VED Anal ysis 1.ABC Analysis: Analysis : ABC analysis cla ssify the good s basis on th e usage, like ² A- Highly us ed ² B- Moderat e used
60
² C- Low us ed
2.VED Analysis: VED analysis divide th e goods basis on requirements: ² V- Vit al al goods ² E- Ess enti al goods ² D- Desirable goods
Maint enance enance dep artm ent also maint ain the machinery of all the three plants. It has mechanical engineers for the maint enance enance of machiner y. They w ork 24 hrs for all the three plants.
TPM (Total P roductive Maintenance):
Tot al al Producti ve Maint enance enance (TPM ) is an equipm ent mana gement p rogram th at emph asiz es operato r involvement and ownership of equipm ent performance.
The goals of a TPM program are to maximiz e equipm ent p rod ucti vity, maximiz e equipm ent availability and make quality product by eliminating caus es of equipm ent def ec ects, loss es and wast es through ex panding and engaging th e knowled ge, sk ills and abiliti es of the f ront -line people running th e p rocess. Goals of TPM ² Zero acc idents ² Minimum lif e cycle cost ² Zero unplanned downtim e ² Zero sp eed loss es ² Zero de f ec ects ² Zero wa st e
ers Lt d. is tot all ally based on TPM and MayurUniquot er
KAIZEN.
In the TPM it h as
eam. Team members are responsible for all the p reventi ve measu res. own TPM t ea ake preventi ve st eps for They analyze p roblem in all three plants and t ake
maint enance enance so that it can imp rove producti vity of th e firm. For e.g.
61
² Before TPM : Chemi cal were stored in th e drums so lot of chemi cal
wa st age during the t ran ransf er er in other vess el. Aft er er TPM: chemi cal stored in the boxes so it mi nimiz es the wa st age.
² Before TPM : Open wi red was us ed in th e p lant so indicat es th e accidents.
Aft er er TPM: wires were covered so it prevents acc idents.
KAIZEN: KAIZEN
composed with t wo words it m eans continuous improvement. . Kaiz en
is Jap ane se Qu ality Cont rol Syst em for conti nuous improvement in quality, echnology, process es, comp any culture, productivity, s af ety and leadership in an t ec
organiz ation. It emph asiz es th e well-being of the employee, work ing sm art er er, not harder and .The kaiz en developing best practi ces so that workers don't have to think .Th philosophy lies behind many Jap anese mana gement concepts such as tot al al quality cont rol, quality circles, small group acti vities, labour relations. THE KAIZEN 5 S FRAMEWORK FOR GOOD HOUSEKEEPING : ): Sort out what is needed and what not needed, when is 1. Seiton (Sort ): doubt t ag it out.
2. Seiri ( St ra raight en): en): Keep everything th at is needed in an orderly f ashion so that things can be access easily. 3. Seiso ( Sweep): Clean the machine , f loors and walls, look ing for source of filth. 4. Seiketsu (St andard andardize): Make st andard andard s so that any abnormality becomes obvious. 5. Shitsuke ( Self Dis cipline): Sust ain the imp rovement to prevent back sliding. 3Ms of work
62
Muda : meaning wa st e Mura : meaning irre gular , uneven or inc onsist en ent Muri : meaning unreasonable or excessi ve st ra rain
The goal of Kaiz en is to eradicat e these three Ms. 7 Wastes (MUDA) :
TaichiOhno of Toyot a identifi ed what are called th e seven wa st es or s even muda s, being th e most common form of muda found: Muda means wa st e, where wa st e is any ac tivity that does not add value. Reducing o r eliminating muda is, of course, o ne of the funda ment al al objecti ves of any quality -orient ed ed per son. Following are th e seven typ e of wast age: e-1:Overp roduction Wast e-
Wast ee-2: Waiting Wast ee-3: Transport ation Wast ee-4: Process Wast ee-5 :Inventory e-6: Opera tor Movements Wast e-
Wast ee-7: Def ec ects
63
7. HR Department HR VISION: -
Create a company we are proud of. HR STRATEGY: y
A place where people work with a smile on their face and Dreams in their eyes.
y
A place where your views can be freely voiced and are with an open mind.
y
A place where you know whenever you need help. There is family of 400 members waiting to help you out.
y
A place where you would like to be associated, grows, nurtured and excel.
Notice Board: -
1. Thought of the day-Quotation 2. Birthday 3. Training 4. Self introspection-motivation pictures 5. Communication. They have motivational ppt¶s print out in the plant to motivate the employees to increase the work efficiency.
HRM FUNCTIONS: HRM: The policies and practices involved in carring out the people or human
resource aspect of management position including recruiting , screening, training , rewarding and appraisal. Managerial functions:Planning: -Establishing goals and standards; developing rules and procedures;
developing plans and forecasting. Organizing: - Giving each subordinate a specific task; establishing departments;
64
establishing channels of authority and communication; coordinate the work of subordinates. Staffing:
-
Recruiting prospective employees; selecting employees; setting
performance standards; compensating employees; evaluating performance; counseling employees; training and developing employees. Directing: -Directing employees for right job; maintaining morale; motivating
employees. Controlling: -Setting quality standards, or production levels; taking corrective action
as needed.
Operational functions: -
The basic operational function of HR department is HR planning. After HR planning they starts other activities. HR Planning:
The process of deciding what position the firm will have to fill and how to fill them. 1.Recruitment & Selection: - Recruiting qualified candidate to a particular job and
making hire or no hire decision regarding each applicant for job. Recruitment and selection is done on the basis of interview methods. Recruitment is done by the following methods: y
Notices
y
Circular
y
Through Job Posting: Publishing public job to employees indicating attributes, Qualification, Supervisors payroll etc.
y
Rehiring: Taking back people which left the t he company.
y
Advertising
y
Employment Employment agencies
y
College recruiting
65
Recrui Recruitment yi yiel Pyrami Pyrami :
Leads Generated Candidates Invited Off ers ers ade
New
Sel Select ectii n Procedure: y
Completion of app lication form
y
Preliminary interview
y
Selection test
y
Interview
y
Check ing reference
y
Background investigation
y
Final selection
y
Job offer
y
Job contract: Mayur has 3 years Job con tract
66
2.Training & Development: -
Providing the training to new employees with specific skills or helping them correct deficiencies in their performance and developing the new skills required by job. For the effectiveness of the employees Mayur conducts weekly training programs like Kaizen training classes, TQM classes , TPM etc. so that they can implement the things what they learnt in the training schedule. Principles of Training: y
Every person must have a goal
y
Meaningful presentation
y
Modeling
y
Active participation
y
Reputation
y
Making people active for participation
y
Feedback
y
Reinforcement
Mayur uses different types of tra ining programs: y
Cooperative Training
y
Classroom instruction
y
Audio visual method
y
E-learning
y
On the job experience
y
Staff meeting
y
Seminars
y
Conferences
y
Management games
3.Performance Management:
67
A process that consolidates goal setting, performance appraisal and development into a single common system, the aim, which ensures the employee performance, is supporting supporting the company¶s strategic ai m. Performance Appraisal: -Evaluating the employee¶s current and past performance
relative to his/her performance standards. Mayur uses following types of performance a ppraisal system: y
Self-Appraisal: Performance appraisal done by employee evaluated generally by appraisal from completed by employee prior.
y
Subordinate Appraisal: The performance of a superior by employee, which is more appropriate for development development and a nd administrative purpose.
y
Peer Appraisal: The performance appraisal done by one¶s fellow employee.
y
Team Appraisal: The PA based on TQM concept and recognized team
y
360r Appraisal: Rating are collected overall an employee from subordinates, supervisor, peers, internal and external customer.
4.Industrial relationship & Labor laws: -
Relationship between employer, employee & government. Company follows all the labor laws in the favor of employees for care of their salaries, bonus, compensation etc.
8. Marketing Department 68
MayurUni uoters Ltd. Distr i bu butes its market into following par ts: 1. Delhi-Pun jab-Agra-Kanpur 2. Expor t 3. Automoti ve 4. OEM Expor t 5. South R eg egion 6. R a jasthan-Bihar-Mumba i-Kolkata
The structure in the marketing depar t ment is f latter rather than hierarchy.
Direct or/CMD/ GM/ DGM
Executive (Marketing)
Manager/Assist an ant Manager
The process of marke ting is 1. Order R ece eceived 2. Order Generate 3. Author i ed by QC/R D/PR OD. OD. 4. Order by PPC 5. Production (Jumbo R oll 6. Inspection 7. Dispa tch
69
Fig: SPACE Matr ix
Fig:
PL PLC
9. Finance Department:
70
Finance really needs to understand its wide-ranging role and set of responsibilities more clearly, and t hen make this relevant to t o the business business that it operates in. The reality is that the finance function provides a broad range of different services to meet corporate, legal, statutory, tax and compliance« requirements, to provide transactional, administrative, professional and technical services to the business, and to deliver financial and management reporting and value add decision support. It is critical that each requirement is clearly understood and that organizational and specific job roles, responsibilities and activities are clearly defined and aligned appropriately. Only then can the finance function across all its responsibilities really achieve the triple benefit of world class service levels, at lowest possible cost, while ensuring an effective and efficient enterprise wide control environment. Duties & Responsibilities:Responsibilities:
Maintaining of the Company Accounts.
Preparation of the Budget for the Year.
Salary Disbursement and Claim Settlement.
Auditing of the Accounts. ACCOUNTING POLICY
(A)System of Accounting:
The Company generally follows the mercantile system of accounting except stated otherwise.
(B) Fixed Assets:
Fixed Assets are stated at Cost. The Company capitalizes all costs relating to Fixed Assets acquisitions and installation. The direct cost and financial cost incurred up to the date of commissioning is also capitalized in respect of Fixed Assets.
(C) Depreciation:
(i) Depreciation has been provided at the SLM rates as prescribed by Schedule XIV
71
of the Companies Act, 1956.
(ii) Depreciation has been provided on Double Shift Basis for existing plants and on Single Shift Basis for New Matex Plant installed, during the current year.
(iii) Depreciation on additions and deletion during the year has been provided with reference to the date of addition and a nd deletion.
(iv) Land& Site development has not been depreciated.
(D) Foreign Currency Transactions:
(i) Cost of imported material is converted to Indian currency at the rates applied in Bill of Entry for custom purposes.
(ii) The expenditure in Foreign Currency is accounted at the rates prevailing on the date of transaction.
(iii) The Export sales are accounted for at the actual rates prevailing at the time of transaction.
(iv) Exchange fluctuation arising on repayment of Long Term Liability incurred for the purpose of acquiring Fixed Assets is charged to Profit & Loss A/c as per the provisions of AS-11.
(v) Balances of Monetary items in, Foreign. Currency outstanding at the close of the year is converted in Indian currency at the appropriate rat es of exchange prevailing on the date of the Balance Sheet.
(vi) Exchange rate difference between the prevailing rate on the date of transaction and on the date of settlement as also on conversion of monetary items in Current Assets and Current Liabilities at the end of the year are recognized as Income & expense as the case may be.
72
(E) Inventories:
(i) Raw material, stores, spares, consumable work-in-process and other goods are valued at landed cost or Net Realizable Value, whichever is lower.
(ii) Finished goods are valued at Cost or Net Realizablevalue, R ealizablevalue, whichever is lower.
(iii) The cost of imported raw material includes custom duties and other direct expenditure.
(iv) The cost of finished goods comprises of Raw Material Cost (proportionate of selling price), Manufacturing Expenses, Payment to & provision for employees, Depreciation on Plant & Machinery and factory building (as cost per linear meter on production).
73
3.4 AUDIT REPORT We have audited the attached Balance Sheet of MAYUR UNIQUOTERS LIMITED, JAIPUR, as at 31st March, 2008, the Profit and Loss Account and also the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. a udit.
We conducted our audit in accordance with auditing standards generally accepted in India.
Those Standards require that we plan and perform perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also include assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
1.
As required by the Companies (Auditors (Auditors Report) Order, Order, 2003 issued by the
Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.
2. Further to our our comments in the Annexure Annexure referred to above, above, we report that:
(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;
(ii) In our opinion, proper books of account as required by law have been kept by the company so far as appears from our examination of those books.
(iii) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with
74
by this report are in agreement agr eement with the books of account.
(iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956,except otherwise stated.
(v) On the basis of written representations received from the directors, as on 31st March, 2008, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March, 2008 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;
(vi) In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2008;
b) in the case of the Profit and Loss Account, of the Profit for the year ended on that date; and
c) in the case of Cash Flow Statement, of the Cash Flows for the year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF AUDITORS REPORT OF EVEN DATE TO THE MEMBERS OF OF MAYUR UNIQUOTERS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED MARCH 31, 2008.
1 (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
75
(b) Fixed Assets have been physically verified by the management during the year at reasonable intervals. No material discrepancies were noticed on such verification.
(c) Substantial parts of fixed assets have not been disposed off during the year.
2.
(a) The inventory inventory of the Company Company has been physically verified verified by the
Management during the year. In our opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of physical verification of Inventory followed by the Management are reasonable and adequate in relation to the size of the Company and nature of its business.
(c) The Company has maintained proper records of inventory and the discrepancies noticed between the physical stocks and the t he book record were not material.
3. (a) The Company Company has has not granted any loans unsecured or secured secured to companies, firms or other parties covered in the register maintained under Section 301 of Companies Act, 1956. Hence requirement of clause 3(b), 3(c) and 3(d) is not applicable.
(e) The Company has not taken any loans unsecured or secured from Companies, Firm or other parties covered in the register maintained under section 301 of the Act. Hence requirement of clause 3(f) and 3(g) is not applicable.
4. There is adequate adequate internal control procedure commensurate commensurate with the size of the Company and the nature of its business with regard to the purchases of inventories, fixed asset and for the sale of goods. We have not observed any continuing failure to correct major weaknesses in internal control system.
5. (a) According to the information and explanations explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 have been so entered.
76
(b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of rupees five lakes in respect of any party during the year have been made at prices which are reasonable having regard to prevailing pr evailing market prices at the relevant time.
6.
As informed informed to us, the Company has not not accepted any deposits under the
provisions of Section 58A and 58AA of the Act and the rules framed there under.
7. In our opinion, opinion, the company¶s present internal audit system is commensurate commensurate with its size and nature of its business.
8. As informed to us, maintenanc maintenancee of cost records has not been prescribed prescribed by the Central Government Under Section 209(l)(d) of the Companies Act, 1956, for the products of the Company.
9.
(a) According to the books books and records as as produced and examined examined by us in
accordance with generally accepted auditing practices in India and also based on Management representations, undisputed statutory dues including Provident Fund, Employees Employees State Stat e Insurance dues, Investor The Company has generally regularly deposited education and Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom duty, Excise duty, Cess and other material statutory dues, during the year with the appropriate authorities in India.
(b) As at March 31, 2008, there have been no disputed dues which have not been deposited with the respective authorities in respect of Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom Tax, Excise Duty and a nd Cess.
10. The Company has neither neither accumulated losses as at March 31, 31, 2008, nor nor it has incurred any cash loss either during the financial year ended on that date or in the immediately preceding financial year.
77
11. In our opinion and according to the information and explanations explanations given to us, the Company has not defaulted in repayment of its dues to any financial institution or bank or to debenture holders during the year.
12. The Company has not granted granted any loans or advances on the basis of security by way of pledge of shares, debentures, and other securities.
13. Considering the nature of activities carried on by the Company during during the year, the provisions of any special statute applicable to chit fund / nidhi / mutual benefit fund/societies are not applicable to it.
14. The Company has not dealt or traded trade d in shares, securities, secur ities, debentures debentur es or other investments during the year.
15. The Company has not given guarantees guara ntees for loans taken by others from banks or financial institutions.
16. The Company has not not taken any term ter m loan during the year. year.
17.
On the basis of review revi ew of utilization utilizat ion of funds, which is based on overall
examination of the balance sheet of the company, related information as made available to us and as represented r epresented to us by the Management, Mana gement, funds raised on shortterm basis have not been used for long-term investments.
During the year the Company has allotted 150000 Equity Share to Mrs. PujaPoddar, a party covered in the Register maintained under Section 301 of the Companies Act, 1956 on conversion of Equivalent number of Convertible Warrants issued at a price of Rs. 38/- per Warrant decided in accordance with the requirements of SEBI (DIP) Guidelines 2000 relating to the Preferential Pr eferential Issue. 19. The Company has not issued any debentures during the year. year.
78
20. The Company has not raised raise d any money by public issue during the year.
21.
As per per the information information and explanations explanations given to us and on on the basis of
examination of records, no fraud on or by the Company was noticed or reported during the year.
In the audit report they enclosed the consolidated Balance Sheet and P&L account as well as capital structure of the company. These are the report of year 2008-2009. Balance sheet Balance Sheet of MayurUniquoters ------------------- inRs. Cr. -----------------MAR'09 Sources Of Funds Total Share Capital
5.21
Equity Share Capital
5.21
Share Application Money
0.23
Preference Share Capital
0
Reserves
18.99
Reval uation Reserves
0
Networth
24.43
Secured Loans
8.98
Unsecured Loans
0
Total Debt
8.98
Total Liabilities
33.41
Application Of Funds Gross Block
32.4
Less: Accum. Depr eciation
11.08
79
Net Block
21.32
Capi tal Work in Progress
0.14
Investments
0.07
Inventories
7.2
Sundry Debtors
20.4
Cash and Bank Balance
2.26
Total Current Assets
29.86
Loans and Advances
3.02
Fi xed Deposits
2.15
Total CA, Loans & Advances
35.03
Deffered Credit
0
Current Liabili ti es
22.19
Provisi ons
0.96
Total CL & Provisions
23.15
Net Current Assets
11.88
Miscellaneous Expenses
0
Total Assets
33.41
Contingent Liabilities
0.15
Book Value (Rs)
46.47
Profit & loss account Profit & Loss account of MayurUniquoters ------------------- inRs. Cr. -----------------MAR'09 Income
80
Sales Turnover
97.81
Excise Duty
7.57
Net Sales
90.24
Other Income
0.45
Stock Adjustments
0.27
Total Income
90.96
Expenditure Raw Materials
70.08
Power & Fuel Cost
0.99
Employee Cost
3.78
Other Manufacturing Expenses
1.4
Selling and Admin Expenses
3.33
Miscellaneous Expenses
0.81
Preoperative Exp Capitalised
0
Total Expenses
80.39
Operating Profit
10.12
PBDIT
10.57
Inter est
1.17
PBDT
9.4
Depreciati on
1.39
Other Written Off
0
Profit Before Tax
8.01
Extra-ordinary items
-0.01
PBT (Post Extra-ord Items)
8
Tax
2.89
Reported Net Profit
5.11
Total Value Addition
10.31
Preference Dividend
0
Equity Dividend
1
81
Corporate Dividend Tax
0.17
Per share data ( annualised) Shares in issue (l akhs)
52.07
Earning Per Share (Rs)
9.82
Equity Dividend (%)
20
Book Value (Rs)
46.47
Capital Structure: Capital Structure
Per Period iod
From
Ins Instrum rument
To
Authorized Capital
(Rs. cr)
Issued Capital
-PAIDU P-
(Rs. cr)
Shares (nos)
Face Value
Capital
2007
2008
Equity Share
7
5.21
5206600
10
2006
2007
Equity Share
7
5
5000000
10
2005
2006
Equity Share
5.5
5
5000000
10
2004
2005
Equity Share
5.5
5
5000000
10
2003
2004
Equity Share
5.5
5
5000000
10
2002
2003
Equity Share
5.5
5
5000000
10
2001
2002
Equity Share
5.5
5
5000000
10
2000
2001
Equity Share
5.5
5
5000000
10
1999
2000
Equity Share
5.5
5
5000000
10
1994
1999
Equity Share
5.5
5
5000000
10
1993
1994
Equity Share
5
1.75
1750870
10
82
CHAPTER 4
SWOT ANALYSIS
83
STRENGTHS y
Existence of more than sufficient productive capacity in tanning.
y
Easy availability of low cost of labour.
y
Exposure to export markets.
y
Managements with business background become quality and environment conscious.
y
Presence of qualified leather l eather technologists technologists in the t he field. Comfortable availability of raw materials and other inputs.
y
Massive institutional support for technical services, designing, designing, manpower development development and marketing.
y
Exporter-friendly government government policies.
y
Tax incentives on machinery by Government.
y
Well-established linkages with buyers in EU and USA.
WEAKNESSES y
Low level of modernisation and upgradation of technology, and the integration of developed technology is very slow.
y
Horizontal growth of tanneries.
y
Less number of organised product manufacturers. ma nufacturers.
y
Highly unhygienic environment.
y
Unawareness of international standards by many players as maximum number of leather industries areSMEs.
y
Difficulties in accessing to testing, designing and technical s ervices.
y
Environmental Environmental problems.
OPPORTUNITIES y
Abundant scope to supply finished leather to multinationals multinationals setting up shop in India.
y
Growing fashion consciousness globally.
84
y
Use of information technology and decision support software to help eliminate the length of the production cycle for different products
y
Product diversification - There is lot of scope for diversification into other products, namely, leather garments, goods goods etc.
y
Growing international and domestic markets.
THREATS y
Entry of multinationals in domestic market.
y
Stiff competition from other countries
y
Non- tariff barriers - Developing countries are resorting to more and more non ± tariff barriers indirectly.
y
Improving quality to adapt the stricter international standards.
y
Fast changing fashion trends are difficult to a dapt for the Indian leather industries.
y
Limited scope for mobilising funds through private placements and public issues, as many businesses are family-owned.
85
CHAPTER 5
DISCUSSION ON TRANING
86
5.1 Student work profile: I was assigned to work with raw material store department with organization study. I have to do the entries of raw material according to t he FIFO method in the raw material store books. Process of raw material store: y
Purchase department makes the deal with the t he suppliers suppliers of raw material according to the requirement.
y
When raw material comes to the gatekeeper based on the suppliers report does the plant first gate entry procedure. Then it sends for weight. After that maintenance department take over the charge and unloaded it
y
From the raw material R&D depart ment takes the samples for testing. After the report of R&D material is accepted.
y
Raw material stores consists fabric and release paper. It is received recei ved on the basis of MRIR. MRIR consist the requirements of t he customers.
y
First entries of the receiving are done on the KANBAN board and in the books of raw material store according to FIFO method.
In the store I was supposed to do maintain the record of raw material based on FIFO (first in first out method).
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5.2 Learning Experience: MayurUniquoters Ltd. is the large-scale firm of synthetic leather manufacturing. It has 3 plants for different types of leather manufacture. I studied all the departments of the company. My learning experience was to know the practical implication of the theories in the real world. As an organization follows all the theoretical part of the academics which I have studied in my theory classes.
Production Department:
It is a manufacturing firm so it implants all the quality improvement terms like KAIZEN, TQM and TPMetc. So S o I came to know the importance of all the terms. It has separate raw material test lab which ensure the quality check before the production starts. For a manufacturing firm it is very necessary to continuous improvement in the product. That¶s the reason it has different types of labs. I understood the customer importance and giving value to the customer through this type of satisfaction.
Marketing Department:
It has different divisions of marketing function like exports, imports and other different section. I came to know through marketing department about distribution channels, 4P¶s of marketing, how to adopt the different type of marketing strategy according to the situation, many more concepts of marketing.
Finance Department:
I came to know the knowledge of the capital structure using financial leverage, accounting policy, strategic cost management, allocation funds, payment procedure to employees and suppliers.
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HR Department:
During my training recruitment of new candidates were going onwhich helped me in understanding the recruitment and selection policies of the company. They provide weekly training to improve skills and knowledge of employees. It also provides rewards in terms of monetary or non-monetary for their effectiveness.
Organization:
I also learnt about the advantages of having an organization structure, organization culture, organization design etc.
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CHAPTER 6 BIBLIOGRAPHY A) Websites y
www.mayuruniquotersltd.com
y
www.moneycontrol.com
y
www.wikipedia.com
B) Books 1. Marketing Management (2009 13 th Edition) Philip Kotler, Kevin Lane Keller, Abraham Koshy, MithileshwarJha. MithileshwarJha. (PEARSON Prentice Hall) 2. Human Resource Management Management (2009 11th Edition) Garry Dessler (PHI Learning Private Limited) C) Annual report of the company
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