Spliting and Cutting Process

Spiling and cutting process is the first of component process. Here, the wood be cut and split according size
product that was needed with a SERCLE machine or cutter saw.

Planing and drilling process

Small block wood then be sent to plane machine or thicknesses to get final result with smooth surface without
line saw. After planning, component be moved to drilling machine or pen machine (TENONER and MORTIZER)
to get construction. If basically construction manufacturing process of furniture finish, all component will the
end in sanding process before assembling process.

Sanding Process
In the sanding process, all the components that have been processed. It will obtain the components that have
been refined with the same size before assembling process.

Assembling Process
Assembling manufacturing process of furniture is a assemble of components into finished goods. There some
possibility component needs to be assembled before finishing, and there are only assembled after finishing.
Commonly assembling process be done before finishing, in order when the product has smooth do not get defect
because of scratch.
Assembling one of them important quality key, mainly strength of product. This process need patient so glue
usage enough proper and not excess. Beside that patch quality only can be repaired in this process. From
all manufacturing process of furniture, assembling is the relative long process and difficult.

Finishing Process
Finishing Process is the last manufacturing process of furniture. It is a process of layering wood surface with
purpose to make beautiful and also protect furniture from insect attach or moisture air.
Some type of furniture, finishing process easier be done before furniture be assembled.

Packing process
Out of finishing, products move to packaging area. In this area some accessories (key, handle, reel, etc) and
other equipment patched again. Kinds of packing also depend on last purpose and level quality furniture. More
expensive and more far delivery location need stronger packaging and more carefully.

Wood can be hand carved/worked with a variety of hand tools, including chisels,
rasps, files, hand saws, sandpaper and the like.

In many instances, the design of furniture pieces requires bending of certain

wooden parts. This occurs after the planing process, and usually involves the
application of pressure in conjunction with a softening agent, such as water, and
increased atmospheric pressure. After bending into the desired shape, the piece is
dried to remove excess moisture.

Assembly. Wood furniture can either be finished and then assembled, or the
reverse. Furniture made of irregularly shaped components is usually assembled and
then finished.

The assembly process usually involves the use of adhesives (either synthetic or
natural) in conjunction with other joining methods, such as nailing, followed by the
application of veneers. Purchased veneers are trimmed to correct size and patterns,
and bonded to purchased chipboard.

After assembly, the furniture part is examined to ensure a smooth surface for
finishing.
Pre-finishing. After initial sanding, an even smoother surface is attained by
spraying, sponging or dipping the furniture part with water to cause the wood
fibres to swell and raise. After the surface has dried, a solution of glue or resin is
applied and allowed to dry. The raised fibres are then sanded down to form a
smooth surface.

If the wood contains rosin, which can interfere with the effectiveness of certain
finishes, it may be derosinated by applying a mixture of acetone and ammonia. The
wood is then bleached by spraying, sponging or dipping the wood into a bleaching
agent such as hydrogen peroxide.

Surface finishing. Surface finishing may involve the use of a large variety of
coatings. These coatings are applied after the product is assembled or in a flat line
operation before assembly. Coatings could normally include fillers, stains, glazes,
sealers, lacquers, paints, varnishes and other finishes. The coatings may be applied
by spray, brush, pad, dip, roller or flow-coating machine.

Coatings can be either solvent based or water based. Paints may contain a wide
variety of pigments, depending on the desired colour.
 Receiving of Timber
Timber taken from our storage area will be checked and ...

Cutting & Molding

Selecting from the received timber bundle, each piece ...

Component Fabrication
Molded timber is processes by different machines ...

Assembly
Each components will be assembled accordingly to ...

Finishing & Packing

Assembled parts are dipped in teak oil and wiped dry ...

Delivery
Finished products will be loaded into containers ...

Phase 1 (Receiving of Timber)

Timber taken from our storage area will be checked and measure to ensure sizes and moisture content
is within requirements.
Each bundle is documented and release to production floor for processing.

Phase 2 (Cutting & Molding)

Selecting from the received timber bundle, each piece of timber is carefully cross cut into lengths
required.
Cut timber is then bundled on pallets, which is then processed at our molding section to achieve the
shapes and sizes required.
Documentation and identification of each bundle is properly done here to ensure chain of custody
procedure is followed.

Phase 3 (Component Fabrication)

Molded timber is processes by different machines depending on its shape and design to acquire its
features.
These components are then carefully sanded to round all sharp edges and smoothen out all surfaces.

Phase 4 (Assembly)

Each components will be assembled accordingly to form the part of the intended furniture.
Joints are glued together to form a strong bond. Assembled parts are then stacked together and labeled
for traceability.

Phase 5 (Finishing & Packing)

Assembled parts are dipped in teak oil and wiped dry to achieve the brown/teak finishing.
Teak oil acts as repellent of wood destroying insects, fungicide, as well as providing some weather and
UV resistants to the wood.
These parts are left for a period of time for the teak oil to cure and dry. They are inspected again before
being packed into carton boxes.

Phase 6 (Delivery)

Finished products will be loaded into containers according to customer's order.

These containers are then shipped out to our customers from all around the world.
 3.2 PRODUCTION DEPARTMENT

INTRODUCTION

Sparkles modular division has high productivity and profitability production

department in equipped with efficient and qualified managers and supervisors.
FUNCTION

The main function come under production department are

1 production planning
2 furniture production
3 product development

PRODUCTION PLANNING
The required quality and quantity is specified through production planning and
production is done according to this planning quality is ensured by quality control
department. Production planning involves an organization of an overall manufacturing
Operating system to produce a product. Objective of production planning is to provide
a physical system together with a set of operating guideline of efficient conversion of
raw material human skill and other input to finished product.

The production planning procedure are varies from company to company.

Production planning may begin with product idea and a plan for the design of product
and the entire production system to manufacturing of a modified version of existing
product, using the existing facilities. The major factors determine production planning
procedures are;

volume of the product

nature of production process
nature of operation
FURNITURE PRODUCTION
Manufacturing process of furniture in N Sparkles Modular categorised below,

ASSEMBLY PROCESS:

The boards arrives at the first section and cutting is done by panel saw.
Its then processed at spindle moulder for getting different shapes.
Micas are pasted to the boards and allowed for drying for 12hrs.
Edges are finished with the help of automatic edge banding machine and manual edge banding
for low work.
Carpenters marks the measurements on the board parts for fitting
Each parts are distributed to the fitters for assembling one by one.
Another group of fitters adds accessories(handles, hinges, locks etc.) to the furniture
Polishing work is carried out to give finishes to the furniture.
Finally the supervisor inspects for correction and goes for packing.

STAGES OF MANUFATURING:

Stage 1: CUTTING
Stage 2: CARVING
Stage 3: MICA PASTING
Stage 4: EDGE BANDING
Stage 5: MARKING MEASUREMENTS
Stage 6: ASSEMBLING
Stage 7: FITTING ACCESSORIES
Stage 8: POLISHING
Stage 9: FINAL INSPECTION
Stage 10: PACKING
Stage 11: TRANSPORTING
4.4 DIFFERENT CATEGORIES OF WORKER

Carpenters

The Carpenters processes wooden board products into furniture components, using a wide range of
machinery. Their main function is to set up, adjust, operate and maintain machines like panel saw and
spindle moulder. The Carpenters will cut the wooden boards and makes different shapes according to
design specifications.

Fitters

The Fitters receive the components from the wood machinist and assemble the piece of furniture.
They add the finishing touches such as doors, drawers and locks.

The Fitters makers involve both handwork and some hand machines for drilling, sanding, marking
measurements and finally fits all the components and accessories to the furniture.

Frame-maker

The Frame maker work will be very similar in most respects to that of the Fitters, with a greater work
towards frames, rather than hinges, doors and fitting accessories.

Machine operator

The main task of machine operator is to runs the automated machines like

Spindle moulder and

 Carving machine

Carver

The shaping and decorative work applied to furniture is done by using carving machines and by hand.
Carver uses a custom made styles, techniques and methods.

Upholsterer

Upholsterer job is to apply all the soft finishes to the various pieces of furniture. The main materials
they use are fabrics, foams and various types of threading.

Edge banding operator

Operator job is to control automatic edge banding machine for pasting beading (both wooden and pvc)
on all corners of shaped boards

Helpers

Helpers do stuffs like internal mobility of raw material and goods from one work area to another.
They uses fork lifters for transferring materials, and some of them are assigned for cleaning, packing,
labelling, loading etc.
ASSEMBLING

It is the section in which the different furniture materials are joining together for

making the furniture. in furniture section the woods are shaping, sanding, turning and

drilling. These wood pieces are assembling in order to make the exact furniture.

Packing work is also doing in assembling department.

Structure of production department

MANAGING DIRECTOR

GENERIAL MANAGER

PRODUCTION SUPERVISOR

ASSISTANT PRODUCTION SUPERVISOR

WORKER
 3.3 MARKETING DEPARTMENT

INTRODUCTION

Marketing is the human activity directed at satisfying the need and wants through an
exchange process. The marketing department is headed by marketing manager. He is assisted
by junior sales officer in tirupur and by area sales manager in outside tirupur. The Sparkles
follows full cost pricing strategy to the product that is marked by them.

FUNCTIONS OF MARKETING DEPARTMENT

Formulation of effective advertising strategies for winning the market.
Conducting retailers meet for the purpose of maintaining cordial relationship between
management and distributors.
Conducting consumer survey for the purpose of collecting information from customers for
the further product development and evaluation of existing position of product in the
market.

PROMOTIONAL TOOLS

Once the product is manufactured, price fixed and distribution channels are selected, the
next task is informing the prospective customer. The customers of Sparkles are informed
through the following tools:

Advertising
Dealers meet
Carpenters meets
Discounts, offers, gift packs during festival season.
Sales man gift scheme.

ADVERTISMENT AND PUBLICITY

 The major purpose of advertisement and publicity is to promote product effectively
through providing information to customers.

The advertisement methods followed by Sparkles are:

Sales promotion
Press media
Visual/ electronic media
Hoarding
Exhibition
Laminated boards

BRANDING OF PRODUCTS

Branding means giving a name, sign, symbol, design or combination of all so as to

distinguish the products from other similar product. The products produced in the company
are sold under the brand name Sparkles modular furniture.

TRANSPORTATION

This is the physical movement of goods from one place to another. Transportation function
of Sparkles is undertaken by sales and shipping division. The company usually uses the modes
like train, road, and ship for the purpose of transportation.

PRICING POLICY

Pricing policy provides the guidelines with in which pricing strategy is formulated and
implemented. Rubco follows cost based pricing policy. the price of the product is computed by
adding certain percentage of profit to the cost of the product per unit.

DISCOUNTS
 The company provides 2% trade discount on office furniture and kitchen furniture. If the
per purchase value exceeds Rs 2 lakh then 10% discount is given.

MARKETING RESEARCH

Marketing research is concerned with obtaining information regarding market.it is study

of market its self. The marketing research is conducted by the company regarding changes in
price, quality, design, and customer satisfaction level and after sales service etc.
 3.4 QUALITY CONTROL DEPARTMENT

INTRODUCTION

The rubco industrial complex has a separate quality control section with computerized
BHED meters, universal tensile,esters and compression set apparatus, flexor meters and
abrasion testers etc.

This section ensures the quality parameters of all incoming raw materials, in process
material and finished goods.

The company has a well established quality control division. The function of quality
control division. The function of quality control starts from the log yard and ends in the
dispatching section, so it is very long process. Quality control is strictly adopted in the
following process.

Acceptance of logs
Impregnation process
Klin drying
Gluing
In process line
Finishing
Packing and dispatching

QUALITY PARAMETERS

Minimum girth should be 28 inch and length should be 4 feet

Tapping mark should be very less
Branches and humps should be avoided
Dead knots and nails should be avoided
Irregular shapes and fungal attacked woods should be avoided

QUALITY OBJECTIVES
 High capacity utilization
Enhancing competence of employees
High level of profitability
Low level of rejection
High yield from input materials
Low level of break down
Least possible customer complaints

QUALITY POLICY

Rubcos quality policy is to give enhanced satisfaction to their customers through the
manufacture and supply of rubber products by the use of modern manufacturing facilities.
They voluntarily meet the entire product and process related regulatory requirements. The
employees at rubco are committed to continuously improve their performance in all sphere of
activity.

INSPECTION

The act of determining the conformance or non conformance of the expected performance
is the function. Here, the manufacturer Seeks to determine the acceptability of the product or
part of it. The basis for the inspection is usually a certain specification, Which is called an
inspection standard. Comparing the quality of the product to the standard makes inspection.

In rubco, the inspection standards of every product and process are predetermined
based on these standards. Inspection is carried at all stage of production. Quality control
department conduct three types of inspection for maintain quality of materials they are

INCOMING INSPECTION

It is conducted when the purchase department purchases the materials to the production.
At the time of production the required quality of to each accepted or it is rejected.
IN PROCESS INSPECTION

The quality checking is done according to the production process the quality supervisor
inspect entire product production. Then the material is passed of it is satisfied the required
quality other wise it is send file work.

FINAL INSPECTION

After completion of production process the supervisor conducts its last inspection if the
supervisor is satisfied on the quality of material produced, the materials are send to dispatch
or other wise they are given to re work.

The quality checking procedure in company are;

Boiling water soak De Lamination test

Cold water soak De Lamination test
Dry salt retention test.
Reagent test
Moisture content test
Concentration check.
Structure of quality control department

Managing director

General manager

Quality supervisor

Skilled worker

Unskilled worker
3.5 PERSONNEL AND ADMINISTRATION DEPARTMENT

INTRODUCTION

Rubco haut wood has a separate personnel department to perform personnel

functions like manpower planning , recruitment, selection, training, performance appraisal,
employee motivation, welfare, record keeping etc. the personel and administrative officer in
charge of personnel and administrative department. the personnel and administrative officer
is assisted by time officer.

Rubco is foreword looking organization committed to identify train develop and sustain
its human resource in such a manner as to integrate the individual career aspiration of its
executive. Rubco has basically a fair, equitable and performance-oriented policy with respect
to its human resources.

FUNCTIONS

Conducting job analysis

Planning labors needs and recruiting job candidates
Selecting job candidates
Conducting orientation and training programs for new employee
Managing wages and salaries
Providing incentives and benefits
Appraising performance
Communication with employees
Training and developing managers
Building employees commitment

RESPONSIBILITIES OF MANAGER
 He is responsible for manpower planning recruitment, selection, training,
compensation package, performance appraisal, maintaining discipline.

He is providing advice and guidance to the officers and staffs working in the unit
under the control of GM in the matter connected with the performance appraisal, discipline,
training etc.

He is responsible for obtaining necessary function for certain of posts, pay scale, and
other required sanctions from managing director or chairman for filling up manpower
requirements at time to time.

He is responsible for proper administration of statutory and nonstatutory welfare

programs in the company.He is responsible for preparation of wages salary bull and passing it
to finance department for disbursement.

He is responsible for identifying training needs of employees and arranges various

training programs for employees.

MANPOWER DEVELOPMENT IN RUBCO HAUT

The company has a well established man power strength. There are 818 workers employed
in different categories of work. The workers of the company are divided in to four categories
they are;

a. specialized workers
They are carpenters; they concentrate on work like final sanding, assembling etc. the spray
finish also come under this category. The specialist workers have a pay scale of Rs 135 per
day.

b. skilled workers

They are those who have specialized in a particular job they are basically ITI and diploma
holders. They have pay scale of 130 per day

c. unskilled workers
 They are third category and include those who have undergone 6 months initial training in
the company. They have a pay scale of Rs 111 per day

a. Learners
Learners category includes the newly selected workers, they are actually under training for
the first 6 months, then promoted to unskilled category based on their performance. They
have pay scale of Rs 90 per day.

RECRUITMENT AND SELECTION POLICY

For the recruitment process, rubco haut wood recruits the employees from both external
and internal sources.

Internal sources of recruitment of rubco haut wood includes promotion transfer and some
demotions

External sources of rubco haut wood mainly done by publishing the recruitments
advertisement in daily news paper to some extent company also prefers employees
recommendations. (if the candidate satisfies required quality)

After the recruitment procedure, the next step is the screening of application based on the
notification. In order to select the best candidate company conducts personal interview.
Based on the qualification, experience, and performance of the candidate, the rank list is
prepared and the best one is selected.

Rules regarding recruitment and selection

 Any person below age of 18 is not appointed as the worker or leaner.
All workers are selected only after verifying and clearing the data given in the application
form.
The resigned worker and dismissed workers will not be selected
A person should not perform as a part time or full time employee in the other
organization while he is a worker of the company.

TRAINING POLICY

Every employee has to under go training. They have a probation period of one year in
which first six months are treated as learners. Supervisors will give on the job training to them
during that period. During probation period employees are closely watched. Any unruly
behavior from their part will cause their further service in the company. In rubco training is
provided to the workers under the ministry of safety training program. During the training
period the trainees are given stipend.

PERFORMANCE APPRISAL

It is the process of evaluating the employees performance of a job in terms of

requirements. It is considered as the most in dispensable tool for an organization, for the
information it provide is highly useful in decision regarding various personal aspects such as
promotions and merit increases performance measures also link information gathering and
decision making process which provide a basis for judging the effectiveness of personnel sub
division such as recruiting, selection, training, and compensation.
Rubco huat woods are using grading method for performance appraisal. Supervisor appointed
to evaluate the performance of workers. According to their performance, they are given grade
as below;

A grade - excellent

B grade - good

C grade - satisfactory

Following factors are taken into consideration for fixing grades:

Attendance
Responsibility
Ability to grasp things
Work performance
Quality of output

TIME OFFICE

The main functions of time office are;

To prepare shift schedule on monthly basis

To prepare and display notice of various safety and other matters
To oversee the conduct of staff and the workers, to ensure the general discipline
etc
To maintain out pass register fir proper recording duly sectioned out pass od
employees
To maintain an accident register
To issue visitors pass as per company rules
Rubco haut woods make use of smart card for recording the time of arrival and departure of
the employees.
 THE SHIFT TIMINGS AT RUBCO HAUT WOOD:

First shift - 8.30 am to 5.00 pm

Second shift - 5.00pm to 1.00 am

Third shift - 1.00am to 8.30am

If there is any additional work, it is treated as over time and workers get double of the
usual rate of pay. The second shift of workers will get night allowance of Rs 10 and the third
shift workers will get an allowance of Rs 15 each.

REMUNERATION

In rubco woods, the workers are paid n time rate system. The remuneration of workers is
paid as per minimum wage Act of 1948 and the managerial persons remuneration as per the
kerala service rule. Company uses the method of paying double wage in case of over time and
triple wage in public holidays.

COMPENSATION

Compensation means something done by the company to make up for the loss, deficiency
or a fault. The different components of compensation include the following.

a. Bonus

Bonus means something given or paid by the company in addition to what is usual or
expected. In other words, bonus is the sum of the money or equivalent given to the employee
in addition to the employees usual compensation. Bonuses are provided to the employees in
the festival seasons and for occasions happen in the company.

b. E S I (employees state insurance) and provident fund (p f)

 Rubco haut wood Pvt Ltd provides employee state insurance and provident fund to the
employees. The employers contribution to ESI is 1.75% and employees contribution is 4.75%
. The employees contribution to the P F is 12% and employers contribution is 13%.

WELFARE ACTIVITIES

The following are some well fare activities given to employees;

Labor welfare : labor well fare funds are given by the

company to increase the standard of living.

Canteen : the company providing quality foods to the

employees. kudumbasree unit with the company
complex runs rubcos canteen.

Rest room : the company provides rest room for the shift
workers.

Change room : for the workers to change their dress, a change

room is established in the factory premises.

Safety : safety measures like ear plug, glows, cooling, glass

and masks are given to the employees who work in
the factory.
LEAVE PROVISIONS

Leave with wages will be allowed to the workers as provided for the factories Act.
The company allows an annual leave of 12 days to these employeess having as service of 240
days, in the plant excluding other leaves. Leaves as per ESI Act, 10 days sick leave and
maximum of 30 days in the case of hospitalization.

HOLIDAY

Festival holiday fixed as per national festival Act. Now 13 days are allowed for
festival holidays. National holidays will be allows to the workmen on provided for in the kerala
industrial establishment Act.

RETIREMENT

On attain the age of 58, the entire employee made to retire from their service. Various
benefits like pension, gratuity are sanctioned on retirement. All the rules regarding retirement
in Rubco are governed buy standing order. A standing order is an act, which guides the service
rules of employees and employers.

DICIPLINARY PROCEEDINGS

1 transfer

Employees are liable to transfer from one department to another department of from
one section to another section with out any increase in pay.

2 demotion

In the case of misbehavior on the part of employee the concerned employee will placed in
the lower position. Demotion begins with the reporting the management about the
misconduct and management will appoint an enquiry committee and the disciplinary actions
for him are depend up on the nature of misconduct.

TRADE UNION

The trade union is a inevitable part of modern industrial setup. Trade union influences
industrial democracy morale and productivity. Rubco haut wood has only one trade union that
is rubco employees union (REU), which is affiliated to CITU. since there is only one trade
union there is no inter union rivalry.

ABSENTEEISM AND TURNOVER

One of the problem rubco haut wood facing to today is the increasing rate of labor
turnover. it is the out come of resignation and dismissal of workers. Some of the reason for
the resignation is getting better job, dissatisfaction with working condition, sickness etc.

Main consequences of labor turnover are loosing expert hands, decrease in productivity,
increased cost of recruitment etc.
Structure of HR department

MD

GM

APO

TIME OFFICER

COMPUTER
PROGRAMMER

STENO
 JUNIOR CLERK

TYPEST
HEAD GURD RECEPTIONEST

SECURITY GURD DRIVER

ATTENTOR

3.6 FINANCIAL DEPARTMENT

INTRODUCTION

Financial management, also referred to as corporate finance or managerial finance,

emerged as a distinct field of study at the turn of 20 th century. Finance theory; in general,
rest on the premise that the goal of financial management should be to maximize the wealth
of the share holders.
 Finance refers to the application of skill or care in the manipulation in the use and control pf
the money .The finance in the modern business world is the life blood of business economy.
We can not image a business with out finance because it is a central point of all business
activities.

FINANCIAL FUNCTIONS

Passing and settlement of all miscellaneous advances.

Perform all works connected with insurance coverage of fixed financial asset.
Keeping personnel files of employees relating salary computation annual increment.
Prepare profitability, trend, reports, and wages analysis.
Quarterly and yearly financial report preparation.
Making blank statements
Preparation, assisting and coordinating of all works connected with finalization of
accounts.
Assisting statutory/ vigilance/ auditors from head quarters in connect with audit of
accounts of rubco rub wood division.
Make internal and external purchases.

RESPONSIBILITIES OF FINANCIAL MANAGER

Financial planning
Rising of necessary funds.
Controlling the use of funds
Deposition of profit
Accounts finalization
Tax planning
Book keeping and accounting
Internal audit &Profit planning

CAPITAL BUDGETING

Capital budgeting is done at the beginning of the year itself. The requirements of capital
will be specified clearly for the approval. During the budgeted year, if there is any further
requirement of capital is faced then the proper justification has to be made. If the requirement is
seen as important on then approve of the capital is sanctioned the requirement of additional
capital may arise due to change in price of raw materials, packing materials, transportation cost
etc

CASH MANAGEMENT

Cash management system is one of the key areas in any business, apart from the
fact it is the most liquid current asset can be reduced. Cash is the common denominator to
which all current assets can be reduced because that the other major liquid asset receivable
and inventory get eventually get converted in to cash.

CREDIT CONTROL FUNCTION

A trade credit arises when the company sells its products or services on credit
and does not receive cash immediately. it is an essential marketing tool, acting as bridge of
movements of goods, or services through production and distribution stagrs to customers. A
company grants credit to protect its sales from the competitor and to attract the potential
customers also. rubco rubwood furniture division does not give any credit to customers. The
sales are making through advance payment or spot payment.

PLANNING OF FUNDS

Planning of funds is a careful estimate made by the manager about the total
funds required, which includes both fixed and working capital requirements. This estimation is
done by the observation over the physical activities of the company.

ALLOCATION OF FUNDS

Providing the funds to proper place at proper time is also an important task to be done by
financial manager studies the cash requirements of each department and funds are
distributed.

RECORDING OF TRANSACTIONS

Each and every transactions of the company are recorded first in journal and posted to
ledgers.
WORKING CAPITAL

Working capital refers to the amount required to meet the day to day operations of the
business the working capital of the company is 80 lakh per month complete rise working
capital in the following ways

Cash
Inventories
Accounts receivable.

FIXED ASSET

It is the major part of working of a company. depreciation of fixed asset are charged on the
diminishing balanced method.

Vehicle
Plant and machinery
Generator
Building

COST CONTROL

The costs are controlled in raw material and reduction to expense there is limitation of
utilization of funds. The company will all ways have the comparison of budget actual.

AUDITING

The accounts of the company should be compulsorily audited. the auditing work is done by
m/s varma & varma, kannur.and there is an internal auditing system which is done by the
internal auditor.

TAX STRUCTURE

Company pays sales tax, income tax and excise duty ( 14%) VAT 12.5% to the kerala Govt.in
accordance to change in state budget.
STRUCTURE OF FINANCE DEPARTMENT

MD

GM

A/C OFFICER
JUNIOR CLERK JUNIOR CLERK
3.7 PURCHASE DEPARTMENT

INTRODUCTION

The purchasing department plays a very important role in organization because

purchasing has effects on every vital factor concerning the manufacture, quality, cost,
efficiency, and prompt delivery of goods to customers. The purchasing department is
responsible for the efficient purchase of all goods of proper quality required for the different
department. Purchasing is the most important function of material management as the
moment an order is placed for the purchase of materials; a substantial part of the company
finance is committed which effects the cash flow position of the company. The head of the
department is usually known as purchase manager.

FUNCTIONS OF PURCHASE DEPARTMENT

To establish purchase policies, procedure and practices.

To identify and choose the best source of supply materials
To receive purchase requisition from all departments.
To place purchases order with supplier and maintain records
To check the quality and quantity of materials received.
To verify and approve the invoice for payment

Functions of purchase department in rubco

The company mainly requires two types of materials- direct material and indirect
material. The direct material for rubber wood furniture product are the round log rubber
wood and indirect material includes hardware item used for production. The amount of raw
material purchased by rubco is around 30 lakh per month which comprises item including
rubber wood andhard ware item like screws, bolt, nail etc

consumables like machine belt, lubricant oil, engine oil, break oil etc
chemicals like boric acid and borax
finger glue
Iacquer items, thinner, Steiner, sanding belt paper etc.

As a substantial portion of the companys finance is used for purchasing the rubber
wood, the purchase department should keep in mind the following specifications at the time
of purchasing rubber wood

the logs must have a minimum oe 24 inch diameter

it must have minimum of 4 feet to 8 feet length
there must be no tapping mark, bending, nails etc
logs having excess fiber should be rejected
At present suppliers of rubber wood are from;

Kerala : perumbavoor, taliparanba, kasargod, iritty

Karnataka : sullys, manglore

PURCHASE PROCEDURE

Rubco is following a purchase procedure which is very systematic and scientific. The main
objective of this purchase procedure is to ensure all material to confirm to the specific
requirements. The following are the various purchase procedure which are followed by rubcu
huat Pvt Ltd.

1 receipt of purchase requisition

The purchasing function of ruubco huat Pvt Ltd starts from receiving purchase requisition.
A purchase requisition is a form is used as a formal request to the purchasing department to
purchase materials. This form is prepared by the departmental heads for special materials not
stocked as regular items. It contain the details with ordering number and specification if any,
quantity of item and required date etc.

2 inviting quotations

The company calls tender for purchase of materials from approves and provisional vendor.
In responds to this tender the company gets the quotation from various suppliers that they

are ready to supply goods by specifying the quality and price.

3 preparation of comparative statement.

On receipt of quotations from the suppliers, the purchase officer prepares a comparative
statement on analysis of the quality of raw material at low rat.

4 selections of suppliers

After the preparation of comparative statement, this comparative statement is forwarded

to purchase committee. The purchase committee select the most favorable supplier by
considering the person who is supplying good at least cost with prescribed quality and with in
the prescribed time.

5 preparation of purchase order

After getting approval from purchasing committee, purchase department prepares

purchase order. Purchase order is a written authorization to the supplier to supply the
material. The purchase order contain the information such as material description quality ,
rate, total cost delivery rate, terms and conditions etc.

6 preparation of goods receiving notes at the store

 Once the order is placed, the suppliers deliver the required materials . on receipt of item
stored in the department will prepare goods receiving notes and forwarded to the purchase
department for further proceedings.

7 recommendation of invoice for the release of payment to the suppliers

After proper documentation by the purchase department the invoice and goods receiving
notes are forwarded to the financial department for arranging the payment. Usually the
company makes the payment to the supplier with in one month.
 Structure of Purchase Department

Managing

Director

GM

Purchase
Manager

Purchase asst. Stock

Manager Keeper

Asst. Store
Keeper
3.8 SALES AND SHIPPING DEPARTMENT

INTRODUCTION

Rubco sales international Ltd is the sales and marketing out fit of entire rubco group of
companies. The company is run by eminent professionals with the active support from the
management. The company has already well established dealer/ distributor net work and it is
expanding its horizon through out the world.

Rubco haut Pvt Ltd has one sales and shipping officer. He controls the sales acivities in the
company. Shipping an activity taken by central execise, they check all products in the
company itself to avoid damages incurring in loading. Loading of goods in the container at
shipyard is called shipping. Shipping of product is done from Cochin shipyard.

FUNCTIONS OF SALES DEPARTMENT

Receiving data from dealers and arranging for the dispatching of roducts.
Preparation of invoices and other related document for dispatch
Maintaining of sales register and filling of sales tax returns and other statutory
records with the sales tax department
Maintaining and submission of statutory documents pertain to central excise
department
Preparation of quotations as per the requirement from the parties in consultation
with the production department and accounts officer.

FUNCTIONS OF SHIPPING DEPARTMENT

Preparations of pro necessary shipping documents and forward the documents to

clearing and forwarding agents.
Coordination with CHA for placement of containers
Issue of staff and transportation at lowest cost

Post shipment documentation

Preparation of post shipment documentation and forward same to the bankers.

Preparation of bank realization of certificate
 To coordinate/ follow up with the bank to ensure that the payment has been
received in time
Maintenance of register of export for each unit.

FUNCTIONS OF EXPORT SECTION

Finalization of export contract.

Coordination between departments and matters connected with export
Issue of packing instructions for export to concerned department
Make arrangement for inspection of goods.

EXPORT PROCEDURE

Locating the potential buyer by searching through various portal, trade journals,
foreign visit export promotion councils and also by responding enquiries.
Contract thus by mail, telephone and intimating the company intention.
Negotiating prices terms of payment and delivery terms.
Sending sample brochure and other requests
If price and terms are approved, awaiting their purchase order/ contracts.
Filling shipments documents through the(custom home agent).
Providing necessary advice to buyer
Follow up the cargo till it reaches the destination.
Effort for the order.
Obtain buyer feed back and product quality.
Structure of sales and shipping department

MANAGING
DIRECTOR

GENERAL MANAGER
 SALES AND SHIPPING
OFFICER

JUNIOR SALES JUNIOR JUNIOR SALES OFFFICER JUNIOR

OFFFICER KERALA SALES KERALA SALES

SALES EXICUTIVE SALES EXICUTIVE SALES SALES

EXICUTIVE EXICUTIVE