Tcsm 1


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Tcsm 1

  1. 1. Members:Roshna BJerin JohnSruthy K BabuSruthy Raj
  2. 2. GENESIS  Date of registration : 8 th October 1981.  Situated at Vazhani.  The area of operation of the mills shall extend to the whole of Kerala state.
  3. 3. OBJECTIVES :  To carry on the business of cotton and staple fibre/polyester viscose blended spinning.  For the purpose of attaining the aforesaid objects, it shall be competent for the mills. (i) To Purchase ,take on lease or in exchange or otherwise acquire and immovable or movable property and to construct, erect, maintain or alter any buildings, installations of machinery or other works necessary or convenient for the purpose of the mills.
  4. 4. (ii )To purchase or otherwise acquire and deal incotton staple fibre and other raw materials and storesfor the purpose of manufacturing ,processing ,finishingand marketing cotton yarns and staple fibre yarns. (iii) To raise funds in such manner as the board ofdirectors of the mills shall think fit for carrying on thebusiness of the mill. (iv)To draw , accept, make and to endorse, discount,negotiate and deal otherwise in promissory notes, billsof exchange and other negotiable or transferableinstruments or securities in the course of the businessof the mills.
  5. 5. (v) To invest any money of the mill in such investment or securities as maybe thought expedient by the board of directors of the mill. (vi) To create any reserve fund, depreciation fund or any other special funds whether for depreciation or for replacement or improvement of any property of the Mills or for any other purpose required by law or conducive to the interest of the Mills. (vii)To acquire and take over the whole or any part of the business, good-will, property, rights, privileges and liabilities of any business which the mills is authorised to carry on. .
  6. 6. (viii) To provide for the welfare of the person employed or formerly employed by the mills.(ix) To subscribe to or otherwise aid benevolent, charitable, national or other institution or objects of a public character or which have any claims to support or aid by the mills by reason of the locality or nature of its operation.(x)To pay all the preliminary expenses of any kind incidental to the registration and establishment of the mills out of the funds of the mills.
  7. 7. (xi) To pay for any property or rights acquired by themills either in cash or fully or partly paid-up shares(xii) To amalgamate with any cooperative institutionshaving objects altogether or in part similar to those ofthe mills.(xiii) To sell or dispose of the property or assets of themills or any part thereof in such manner and for suchconsideration as the board of directors may think fit andto improve , manage , develop or turn to account orotherwise deal with all or any part of the property andrights of the mills.
  8. 8. MEMBERSHIP : Membership of the mill is open to :  Primary Weavers Cooperative Societies and the Kerala State Handloom Weavers Cooperative Society.  Other registered Cooperative societies.  Bodies corporate other than cooperative societies.  Government (State & Central).  KSIDC and NCDC. An entrance fee of Rs 50 shall be payable by each member on admission irrespective of the number of shares taken.
  9. 9. Ta b l e 1 . 1 S t a t u s o f m e m b e r s h i p i n 2 0 1 0 - 11Sl. no List of Share holders No. of Share Shares Total Amount holders purchased 1 Weavers coop. 38 167 167000 societies 2 Societies other than 205 2111 2205590 weavers coop. societies 3 Local bodies 46 257 289000 4 Govt. of Kerala 1 22848 114240000 Total 290 25383 116901590
  10. 10. SOURCES OF FUNDS  Share capital  Reserves  Borrowings
  11. 11. SHARE CAPITAL :  The authorised share capital of the mills shall be Rs. 15,00,00,000 /divided into 30,000 shares of Rs 5,000 each. The share capital of the mill are mainly by coop societies and almost 99.5% by Govt. of Kerala.
  12. 12. Ta b l e 1 . 2 S t a t u s o f s h a r e c a p i t a l f r o m 2 0 0 1 - 11Year Govt. Members Suspense Total Growth Index2001-02 114240000 2533000 159890 116932890 1002002-03 114240000 2533000 159890 116932890 1002003-04 114240000 2528000 159490 116927490 99.92004-05 114240000 2528000 159490 116927490 99.92005-06 114240000 2532000 155090 116927090 99.92006-07 114240000 2532000 155090 116927090 99.92007-08 114240000 2532000 155090 116927090 99.92008-09 114240000 2532000 155090 116927090 99.92009-10 114240000 2661590 25500 116927090 99.92010-11 114240000 2661590 25500 116927090 99.9
  13. 13. S t a t u s o f s h a r e c a p i t a l f r o m 2 0 0 1 - 1114000000120000001000000080000000 GOVT. MEMBERS60000000 SUSPENSE TOTAL4000000020000000 0
  14. 14. BORROWINGS:  The mill can borrow money by means of loans and advances from any financing agency with the approval of the Registrar, but the total borrowings must not exceed 25 times its paid up share capital and reserve fund.  The State Govt. and Trichur Cooperative Bank are the main sources of borrowings for the mill.
  15. 15. Ta b l e 1 . 3 Status of borrowings from 2 0 0 1 - 11 Year Sources Total Growth Index Govt. OD with TCB Secured 2001-02 26410324 25928968.84 94780502 147119794.8 100 2002-03 26410324 25436608.84 105230858 157077790.8 106.7 2003-04 26410324 27807982.84 114630858 168849164.8 114.7 2004-05 26410324 - 114885658 141295982 96.04 2005-06 26410324 36194474.84 114230858 176835656.8 120.2 2006-07 69793324 42037517.84 114663502 226494343.8 153.9 2007-08 69793324 47554465.84 114663502 232016291.8 157.7 2008-09 69793324 53919522 114663502 238376348 162.02 2009-10 69793324 - 69793324 139586648 94.8 2010-11 69852324 - 69852324 139704648 94.9
  16. 16. S t a t u s o f b o r r o w i n g s f r o m 2 0 0 1 - 11300000002500000020000000 GOVT.15000000 OD with TCB SECURED10000000 TOTAL50000000 0
  17. 17. BUSINESSOPERATIONS :  The major function of the mill is the processing of raw cotton for which it has 3 plants –Preparatory section, Spinning section and the Winding / Packing section .  The capacity of a mill is expressed in the form of spindles , which is a device to spin fibres into thread .  Mainly due to the scarcity of cotton ,the mill is able to use only 75% of its installed capacity ie 25104 spindles .
  18. 18. Ta b l e 1 . 4 P o s i t i o n o f p r o d u c t i o n a n d s a l e s f r o m 2 0 0 6 - 11 Year Production (in kg) Sales (in rs) 2006-07 779760 124050290 2007-08 694632 102382280 2008-09 529860 81636628 2009-10 745621 122027732 2010-11 746766 166782058
  19. 19. Production (in kg)900000800000700000600000500000400000 Production (in kg)300000200000100000 0 2006-07 2007-08 2008-09 2009-10 2010-11
  20. 20. FUNCTIONALDEPARTMENTS : The thrissur cooperative spinning mill is under the direct control of the government of Kerala. The major functional departments are  Purchase department  Production department  Marketing department  Financial department  Stores department  Human resource department
  21. 21. PURCHASEDEPARTMENT :  All the manufacturing concern must have a well defined purchase department. The quality of the product is based on the efficiency of this dept. Their main function is to purchase raw materials from different sources.  Quality of cotton is determined by its breaking length , strength, micron air, thrash %, etc.The firm purchases cotton by giving quotations. Among the various options available ,the supplier with the lowest quotation is accepted. Purchased cotton is then stored in godowns.
  22. 22.  This mill uses 100% of its cotton for spinning. There are 3 types of count – 60 combed, 62 carded, 80 carded yarn. The mill purchases cotton (in bales) on the basis of centralised cotton purchase system. Major supplier of cotton are Tamil Nadu, Andhra Pradesh, Karnataka & Maharashtra.
  23. 23. PRODUCTIONDEPARTMENT :  Production is the process by which inputs are converted into outputs. All production processes are carried out by this dept which is headed by mills manager.  Production dept is controlled by supervisor & foreman under mills manager.  The capacity of the mill is now 25000 spindles and the cotton varieties are MCU5, DCH32, LK, MECH, Suvin, etc.
  24. 24. PROCESSING OF COTTON  Mixing – A group of workers shuffle the raw material from different sources and keep it as a layer ie one over the other. Then it is divided in a vertical order so that mixing will occur uniformly.
  25. 25.  Blow room – Raw cotton is fed into an automatic feeding system. Blow room process opens the compressor bale of cotton and removes 70-75% of waste present in it. Clean cotton follows the system of horizontal movement and is stored by means of vertical compression pattern. Waste is sent to gutter and sand and seed particles are removed there.
  26. 26.  Carding – Cleaned cotton is converted to silver form. Carding results in fibre to fibre separation and removal of trash from the lap. Carding process is known to be the heart of spinning. Separation of long and short fibres is done and the best quality long fibres are used.
  27. 27.  Comber - Combing machine is used to make fibres uniform and also remove the short fibres in the lap of ribbon.
  28. 28.  Drawing - Drawing is the process of progressively passing or sliding fibres by each other, causing a reduction in the size of the strand, but not breaking its continuity. The output of both carded yarn & combed yarn processes are taken to the drawing dept. The functions of draw frame is doubling, lighting & drafting. In this process, combed / carded silver is converted into draw frame silver.
  29. 29.  Simplex machine – Drafting, twisting and bobbing coordination is done in this dept. on the simplex machine, the draw frame silver is given sufficient twist in order to increase the strength of the yarn. The product from the simplex machine is called rowing yarn which is wound in plastic and sodden bobbin is called flyer.
  30. 30.  Spinning – Input here is the flyer from the Simplex machine .The final product yarn is produced in this process. For converting the raw yarn to yarn, the ring frames are used which gives adequate twist.
  31. 31.  Winding – Yarn is wound by automatic machine on cops. Cops are plastic moulds in which yarn is wound. They are more costly than cones. So the yarn from the spinning process is wound on a cone by using a winding machine.
  32. 32.  Packing – The products from the winding are packed and dispatched which is done in packing and dispatch dept. Each bag contains 40 cones with 1.25 kg for each one.
  34. 34. MARKETINGDEPARTMENT  Bombay yarn market & local power looms are the market for yarn produced. Depot keepers does the sale of the yarn with the help of agents. Fixing the market on trend is not fixed , it fluctuates up and down. The quantity is fixed at the YPC meeting. Head office will then approve the rate & sends a fax message to the mills by specifying the rate and quantity.
  35. 35. FINANCIALDEPARTMENT  The Thrissur cooperative spinning mill have a financial dept. headed by a finance manager. These managers deals with working capital requirement, capital generating & efficient use of all the resources. This dept. plays a vital role since finance is essential for all the activities like purchasing raw materials, machineries, labour wages, etc.
  36. 36. STORESDEPARTMENT  This mill maintains 3 types of stores .they are - raw material store , maintenance store & finished goods store. Stores dept. uses various techniques like VED analysis, ABC analysis to make better control over stores.
  37. 37. HUMAN RESOURCEDEPARTMENT In this mill the employees are classified as  Permanent employees - 225  Casual workers - 59  Badi workers – 59 temporary  Trainees – 20 workers  Securities – 12  Officers – 24  Mill is working 362 days /year & 24 hours/ day in 3 shifts
  38. 38. MANAGEMENT: The management of the mill shall vest in a board of directors consisting of the following 15 members :-  Director of handlooms.  Managing director.  General manager, Kerala State Textile Corporation, Thiruvananthapuram.  The president of the Cooperative Central Bank of the district in which the mill is situated.  Branch managers of the financing institutions / Banks from which the mill has borrowed wherein the terms of borrowing require such nomination. (3)
  39. 39.  Representative of the other affiliated primary weavers cooperative society .(1) Representatives of other affiliated cooperative societies elected. (5) The additional secretary to Govt. / Joint Secretary to Govt. in charge of textiles. Representative elected by the local bodies and the bodies corporate other than cooperative societies from among themselves
  40. 40. COMPETITORS : As India has a wide range of cotton industry, Kerala having favourable conditions for industries, they also have competitors in this field. Their main competitors are :  Bagavathy Cotton Mills , Alagappa Bagar (NTC)  Kerala Lakshmi Mills , Pullazhi
  41. 41. SWOT ANALYSIS STRENGTH  Management is well expertise in all depts.  Highly skilled workforce.  Only cooperative spinning mill in Thrissur.  Sufficient availability of land and building.  Better employer- employee relationship.  Proper working conditions.  Continuous work flow.
  42. 42. WEAKNESS Inventory management is highly required. Shortage of manpower. Transportation cost is high . Power is highly required. Possibility of loss is high since sale is done through consignment agents.
  43. 43. OPPORTUNITY Technology advancement in machines. Increased rate of demand for yarn . New market arose due to liberalisation and globalisation. Possibility of increasing the standard of production. Working capital can be used more.
  44. 44. THREATS Lack of advertisement. Possibility of machine breakdown is high. Demand is not much high. Lack of promotional activities from the part of govt. Quick economic changes.
  45. 45. FUTURE PLANS  Production of quality products at low cost.  Provide high quality and variety of yarn to customers.
  46. 46. B a l a n c e s h e e t a s o n 3 1 s t m a r c h 2 0 11 LIABILITIES AMOUNT ASSETS AMOUNTShare capital 116927090 Fixed asset 2956395.18Reserve and surplus 7436872 Investments 555000Secured loans 69852324 Current assets 23796400.22Unsecured loans - Loans and advances 10928948.4Current liability 112079803.2 Profit and loss a/c 241451787.39 306296089.2 306296089.2
  47. 47. BUSINESS RESULTS Year Profit Loss 2001-02 - 28809690.2 2002-03 - 25348353.8 2003-04 - 34272263.5 2004-05 - 27653963.5 2005-06 - 22682563.4 2006-07 - 27445700.4 2007-08 - 34098901.3 2008-09 - 25940343.2 2009-10 138666683.4 - 2010-11 - 16193900.5
  48. 48. CONCLUSION : Thus the Trichur Co-operative Spinning Mill is able to give employment to a no. of persons and supply yarn to almost the whole of South India even though it has been suffering from losses for so many years except for a profit in 2009. The main problem faced by this mill is the lack of raw material and funds due to which it is not able to compete with private mills. We hope that this mill will continue to provide yarn and enjoy profit for the coming years .