CONTENTS

S.NO. TITLE
1. Introduction
1.1 Introduction to the textile
1.2 Introduction to the organization
2. Purchase department
3. Production processes
4. Production department
5. Sales department
6. Accounts department
7. Marketing department
8. Stores department
9. Organisation chart
10. Conclusion

INTRODUCTION TO TEXTILE INDUSTRY

The Textile mills produce yarn, thread, and also a wide variety of textile
products for use of individuals and business.
The clothing need of our country is mainly contributed from the power loom sector.
About 8 million power looms are in the operation in our country producing about
100000 million meters of cotton cloth every
SITRA (south Indian textile research association) established in the Coimbatore
and it plays as the research organization for textile in south India.

The textile industry is a group of related industries which uses a

variety of natural (cotton, wool etc) and synthetic fibbers to produce fabric.

VARIOUS DEPARTMENTS

Purchase department

Production department

Stores department

Marketing department

Sales department

Accounts department
 Financial department

PURCHASE DEPARTMENT
The first function of textile mills is purchasing the raw materials.
Raw materials include purchasing of cotton. Before purchasing the samples of
cottons are received after checking it the purchasing order is sent.
The purchase is done through the brokers, commission agents or through
the direct dealing of the spinning mills. While receiving the yarn bags the
manager has to check for the quality. Then after receiving the yarn bags the
weight of the bags are checked. There are usually two types of yarn wrap and weft
yarn. The counts are usually 20’s, 30’s and 40’s type of cottons
They are purchasing verities of cotton. They are

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They purchase the cotton as bale wise. They are purchasing nearly 200 bales at one
time. They are using Lorries and tempos as their mode of transport for their
delivery of raw material. The recquired raw materials are also purchased form
various cities and towns.

Mode of payment

Cash purchase
Cash purchase means purchasing raw materials for ready cash. The
payments are made during the purchase because while purchasing large quantity
there will be a cash discount. The direct payments are made through cashes and
cheques.
Credit purchase
Credit purchases means buying the yarns on the credit basis. When
the credit purchase is made the rate of the raw materials will be high and there
will be no discount on the purchase of the raw materials. Credit purchases are
made due to the in sufficient of cash. There will a specific time for payment of
cash from the purchased day.

PRODUCTION DEPARTMENT
The production department is responsible for the production of yarn. The
various processes in production are;
Blow room department:
All the varieties of cotton are cleaned and mixed with each other and
it is became a lap on.
Drawing department:
The sworn comes as 8 threads and that is put in the drawing and then it
is become as an even one. And it goes for another process.
Simplex department:
The sworn comes as an even one after became an even one it is put in the simplex
machine and it is converted into rowing yarn.
Spinning department:
After becoming a rowing yarn it is put in the spinning machine then the cotton is
completely converted in yarn. And in coaning processes the yarn are coaned.
Coan winding:
After became yarn it is put in the coan winding and it is became a coan yarn. The
one coan waits about1.20 grams.

Weight checking:
Using electronic weight machine of the finished clothes are
Checked. And it moves of packing processes.

Packing section:
The last step involved in the production is packing. Packing slips are
used to indicate the length of the cloths .They are packing the coan as bag wise
and one bag consist of 40 cones and it waits about 50kg. The packed yarns are
stored in separate place for selling.

PRODUCTION PROCESSES
Mixing of varieties of cotton

Blow room process

Carding process

Drawing process

Smilax process

Spinning process

Coan winding
 Packing process
STORES DEPARTMENT
The purchased raw materials are stored in stores room for the
production processes.
In the storage department they are having a large area of gowdon for storing
their purchase of raw material and they are keeping safe from destruction until
they used for production process.
The main function of the storage is due to avoid un necessary accidents like
fire, theft etc the stock level can be identified by maintaining the proper ledger
accounts. This department is under the control store man.

SALES DEPARTMENT
Sales are the activities involved in selling the product. Sales
are the most important part of every business. It means the goods are transferred
for money.
The prices of finished products are determined by the managing
director. The sales manager sells out the product through the brokers, commission
agents etc. sales are made at various places in India like Kolkatta, Mumbai, Pune,
Jaipur etc.
The sales are made at regular intervals. The goods are sent by
railways and roadways. The yarns are sold to old as well as new customers. The
cash discount is made to the buyer who buys for large amount, cash and credit
sales are made.
Cash sales
Cash sales means selling finished products for ready cash. The
payments are made during the sales because while selling large quantity there will
be a cash discount. The direct payments are made through cashes and cheques
Credit sales
Credit sales means selling the goods under the credit basis. Credit
sales are normally allowed only to the normal regular buyers. Credit sale is made
only when there is a sufficient capital to run the business. The firm allows only
15 days for payment. In case of delay interest will be charges.

MARKETING DEPARTMENT
Marketing is the main function because without the market the goods
cannot be sold out. But in the field of textile the role of the marketing
department is not much necessary, because the entire produced good are not the
finished goods and it should take away for the further process.
In Thangam textile they are marketing the two varieties of yarn as 40
and 30 based on their thickness. The 40 is used for making shirts and 60 are used
for making pants.
In Thangam textile the manager directly deals with the other nearby buyers. So the
marketing department is not done in full effort.
ACCOUNTS DEPARTMENT
Accounts department also plays a vital role in the businesses by
monitoring the income and expenditure, regulating receipts and payments the
financial strength as otherwise of the unit at any time. Accounts helps to know
weather the businesses are in running progress or not. So hence every business
needs to maintain the accounts as per the rule of the government and want to pay
the tax according to the profit of business. Accounts help to know the current
financial position of businesses when ever needed. Further it will help him to
know the level of the investment in the fixed assets, working capital, fixed
expenses etc.
Thangam textile maintains all the account with the help of well experienced
accountants. They maintain all the accounts like journal, ledger, and trail
balance etc…, for every transaction the entries and the accounts are entered. All
the accounts related to the other departments are also handled and kept in
control. While purchasing and selling the yarn and the other items they will
receive the bills they use to file all the bills in the separate books of
accounts. They have the separate beam stock book for recording the stocks. By
using separate book all the personal expenses are entered.
Auditing is easy because of maintaining the accounts properly. They are paying
the tax regularly every year. Before auditing all the accounts are checked by the
auditor and then it is submitted. Hence the accounts departments are maintained
strictly and properly in order to maintain the stable high profit.

FINANCE DEPARTMENT

Finance is necessary for the every business. The Thangam textiles have
invested over 4.5 cores of the capital and the other raw materials which include
all expenses. This textile has borrowed over a loan from Indian bank and Vijay
bank. Credit purchases are avoided due to proper financial assistance. Credit
purchases make the rate of yarn very high. 70% of the capital is contributed by
the directors and the remaining 30% are borrowed from bank as the loan. They have
borrowed the money by giving proper documents of the company assets to the bank.
The Indian bank is charging about 15% of he interest per annum.
Hence it is easy to borrow the money from the banks. So this firm borrows all
their needs with the bank. Hence the finance is the very important for the growth
and development of the business in the field of the textiles. High level
investment leads to the more profit percentage of this type of the business. So,
finance is the blood of textiles