Final report of organisation study 222 (1)

An Organization study at TULSYAN NEC LTD

ORGANISATION STUDY REPORT ON
TULSYAN NEC LTD

by
AMITH M.S
Reg no:11TUMIB001
For partial fulfillment of the requirements of second year MIB curriculum of Two
years Full time MIB (Industry Integrated) Program.

Submitted to:

BANGALORE UNIVERSITY


STUDENT’S DECLARATION

I hereby solemnly affirm, declare and state that organization study
conducted at “TULSYAN NEC LTD” was done by me with due
diligence and sincerity and this report based on that study is a
bonified work by me and submitted to BANGALORE
UNIVERSITY through CENTRAL COLLEGE under the guidance
and supervision of NIRMALA, Faculty CENTRAL COLLEGE is
my original work and not submitted for the award of any other
degree, diploma, fellowship or other similar title or prizes.

Signature:AMITH M.S

PLACE: Bangalore ENROLLMENT
NO:11TUMIB001

DATE:


CERTIFICATE FROM THE GUIDE

This is to certify that the report of organization study undertaken

at “TULSYAN NEC LTD” by AMITH M.S 11TUMIB001 carried

out in partial fulfillment for the award of degree of MIB (Industry

Integrated) programme of Bangalore University at CENTRAL

COLLEGE, Bangalore under my guidance and direction. This

study report is an original work and not submitted earlier to any

University/Institute.

Signature:

PLACE: Guide Name

DATE:


ACKNOWLEDGEMENT
It is my pleasure to express my sincere gratitude to all those who have given
guidance and support in completion of this internship report. I wish to express
my sincere thanks to Dr Rajaram(Dean of Ramaiah institute of management
studies), and Mr. Moirangthem Momocha singh(Lecturer Ramaiah institute of
management studies), for their encouragement which helped in accomplishment
of this study.

I am thankful to Mr.NAGAPPAN.K HR Manager at, TULSYAN NEC LTD who guided
me throughout this organization study. Without his guidance the outcome of this
project would not have been so successful.

I wish to express my sincere heartfelt gratitude to Mr. PRAKASH.N (Executive-HR)
for the constant guidance and support in all areas.

Name:-Amith M.S

Reg no:-11TUMIB001

Place:

Date:


CONTENTS

1 INTRODUCTION 1-2
OBJECTIVES OF THE STUDY

PROFILES

2.1.Industry profile
2.2.Company profile
2.3.Vision of the company
2.4.Mission of the company 3-20
2
2.5.Objective
2.6.Product profile
2.7.Organizational chart
2.8 Board of directors
2.9 Awards and achievements

FUNCTIONAL AREAS

3.1.Production Department
3.2 Purchase Department
3.3 Quality Department
3 3.4 Finance Department 21-75
3.5 Marketing Department
3.6 Human Resource Department

4 SWOT ANALYSIS 76-78

5 FINDINGS 78-80

6 OVERALL CONCLUSION 80-81
7
7 CONCLUSION 82-84

ANNEXURE 85-87
8
BIBLIOGRAPHY 87-89
9


INTRODUCTION
I Amith M.S studying at Central College( Bangalore University) undertook an internship study at Tulsyan
Nec Ltd to fulfill the requirement of MIB degree course of Bangalore University. This was undertaken
during Oct-Dec2012 and main purpose of this internship was to know how the theoretical aspects we
study during our course, are put into practice by the company.

The objective of undergoing this internship was to get practical exposure to the structure and
functioning of the organization. It was also meant to study the activities of various departments such as
finance, marketing, production, human resource, purchase, store and service etc.

The report traces the growth and development of the company and gives a skeletal outline about the
technologies adopted by the company; the report also explains the values and gives a brief about the
financial aspects of TULSYAN NEC LTD.

OBJECTIVES OF THE STUDY

1) The objectives of the study are to learn & understand the working of various functional
departments like Production, Marketing, Finance and Human Resource.
2) Outline and study the growth and working of the company from its inception.
3) SWOT ANALYSIS to identify the major strengths & weaknesses of the company for
improvement.
4) Study the performance of Tulsyan Nec Ltd.

The details of the study are in the following pages

2.1: INDUSTRY PROFILE
Polymers are a large class of materials consisting of many small molecules (called monomers) that can
be linked together to form long chains, thus they are known as macromolecules A typical polymer may
include tens of thousands of monomers. Because of their large size, polymers are classified as
macromolecules.


In the late 1830s, Charles Goodyear succeeded in producing a useful form of natural rubber through a
process known as "vulcanization." Some 40 years later, Celluloid (a hard plastic formed from
nitrocellulose) was successfully commercialized. Despite these advances, progress in polymer science
was slow until the 1930s, when materials such as vinyl, neoprene, polystyrene, and nylon were
developed. The introduction of these revolutionary materials began an explosion in polymer research
that is still going on today.

Unmatched in the diversity of their properties, polymers such as cotton, wool, rubber, Teflon(tm), and
all plastics are used in nearly every industry. Natural and synthetic polymers can be produced with a
wide range of stiffness, strength, heat resistance, density, and even price. With continued research into
the science and applications of polymers, they are playing an ever increasing role in society.

DISCRIPTION

Polypropylene is lightweight thermoplastic polymer that provides raw material for manufacturing
various textiles, containers, equipments, and components and is used in various industrial applications
also. In other words, it is a kind of thermoplastic resin that is hard and tough and also can be converted
into fibers and moulded articles.

Polypropylene is made from the polymerization of pure propylene gas at low temperature and pressure.
This polymer is known for its unique features such as anti rusting, good insulator, low density, highly
crystalline, high resistance to fatigue and a high melting point. It is also known as a saturated polymer.

Polypropylene is a type of plastic polymer that is mainly used in packaging and moulded articles. The
polymer was discovered much after polyethylene but even though; it gained much importance and rose
up to the level in context of popularity. Since it has been discovered, until now, it has made its mark into
the daily routine activities of the masses.

The major uses in which polypropylene is required are flexible packaging, rigid packaging, automotive
parts, consumer products, fiber products and other industrial applications.

Polypropylene is produced by polymerizing propylene gas or propylene monomers in the presence of a
catalyst. In the year 2004, United States of America is the largest producer of the polymer with a total
production of around 8.4 million metric tons. The major companies indulged in the production include
Exxon Mobil and Shell. Consumption of polypropylene is dominated by Asian continent with a share of


around 40% in the total consumption figures of around 32.9 billions tons. Country wise, United States of
America stands at top in the list of major polypropylene consumer countries. The following is the list
relating to the major plastic consuming countries of the world

 United States of America
 Germany
 Japan
 Singapore
 Canada
 Malaysia
 Thailand
 Indonesia
 Vietnam
 China
 India
 Pakistan

The world market is growing at an average of 3% per year. The world trade in polypropylene has a same
pattern as in the case of polyethylene. The major exporters of this polymer lie in the Southern Asian and
the Middle Eastern area and South Korea is one of the dominant players in the world market. The other
exporters include USA and the countries in the western European region.

In woven sacks industry production takes places from using HDPE (hydro polyethylene) and
PP(propylene)of plastic contents the cost incurred in producing both the raw materials are
more or less same but most of the companies are producing pp raw materials for its production
purpose because its abundance availability in the market and number of suppliers are more.

In India woven sacks industries are providing employment opportunities over 1 million people.
However the industry is growing tremendously due to quality packaging capabilities this
industry approximately contribute to GDP of the nation around 0.12%.


2.2: COMPANY PROFILE

Tulsyan NEC Ltd is one of India's leading manufacturers of Thermo Mechanically Treated

(TMT) Bars. The company is engaged in the Manufacturing TMT bars, Synthetics Woven

Fabrics and Sacks. They have their manufacturing plant at Chennai (Ambatuur &

Gummudipoondi) and Bangalore (Dodabalapur). Their products include TMT Bars, sponge,

billets and ingots in the steel division and in synthetic division it includes PP Woven Sacks,

FIBC and Woven Fabric. The company is an ISO 9001-2000 Certified Company. The Company

is the Flagship Company of the Tulsyan Group. The company is into manufacturing of Thermo

Mechanically Treated Bars. It is the first Licensed Rolling Mill in South India to produce TMT

Bars and obtain ISI 1786 and ISO certification. Tulsyan Steel is registered with the Bureau of

Indian Standards and each TMT Bar is accompanied by a BIS Test Certificate. Tulsyan NEC Ltd

was incorporated on April 11, 1947 as National Engineering Company Ltd in Kapurthala,

Punjab. In July 7, 1947, the company received the certificate of commencement of business. The

company was established to manufacture CTD bars, MS Rounds and other finished steel

products. In the year 1965, the re- rolling facilities at Kolkata was relocated to Chennai. In the

year 1986, the company was taken over by Tulsyan Group. In the year 1994, the company

established additional facility of 36000 MTPA to manufacture MS Ingots. In July 1994, the

company entered the capital market with their maiden public issue and their equity shares we-

re listed on the BSE. In the year 1996, the company received an award from the Government of

Karnataka for export performance. In June 1996, Tulsyan Synthetics Ltd was amalgamated with

the company. In August 1996, the name of the company was changed from National Engineering

Company Ltd to Tulsyan NEC Ltd. In the year 2004, the company installed furnace having Billet


manufacturing capacity of 72000 MTPA at Gummudipoondi. In the year 2005, they set up wind

mill at Devarkulam. In the year 2007, the company installed Rolling Mill at Gummudipoondi

having capacity of 150000 MTPA. In the year 2008, the company signed an MoU with Power

Trading Corporation and Suhaly Abdul Mohsin Al- Shouibi & Sons holding Co Ltd. In August

2008, they entered into an MOU with Budhrani Group of Companies for setting up a joint

venture company. In the year 2009, the company increased the Billet manufacturing capacity by

72000 MTPA at Gummudipoondi. During the year 2009-10, the company completed the

expansion by increasing the Rolling Mill capacity by 150000 MTPA at Gummudipoondi. Also,

they acquired Chitrakoot Steel & Power Pvt Ltd with sponge iron manufacturing capacity of

36000 MT per annum. The company's shares were permitted to trade on National Stock

Exchange of India Ltd with effect from November 05, 2009. The company is in the process of

setting up setting up a captive power plant of 35 MW capacity in Gummudipoondi, Tamil Na

du

. The company is one of the reputed manufacturer's of Synthetic Woven Sacks/Fabric and is
regularly supplying bags to all the major cement companies and many other reputed
organizations in India and also exporting the same on a regular basis.
Manufacturing unit is having well equipped chemical and physical laboratory to monitor the
quality of the product. Besides the sophisticated plant and machinery and the matching in-plant
working environment, organization is managed by a team of dedicated and well experienced
technocrats who believe in excellence of the product

Tulsyan NEC ltd is a leading supplier of Pp FIBC, Jumbo Bags, and Woven Sacks. The
Organization is proud to be esteemed supplier of many customers around the world with the
primary goal to meet their clients requirement and establish mutually pleasant business
relationships with them. The sacks are used to pack cement, food grains, sugar, seeds, branded
products, pulses, chemicals, resins etc. offer circular or flat fabric to be converted to sacks or
bags at customer's end or to use as over wrap for textile packing, upholstery, for carpet backing,


baling and tarpaulins. The sacks, bags, fabrics can be supplied in any color, with printing of logo
or packed products specifications.

The Synthetics/Plastic division has recorded steady growth over the years. The Company
entered the export market during 1993-94 with an export turnover of Rs.2.41 lakhs during the
first year, exports has steadily grown since then. The Company got an export award from the
Government of Karnataka for its export performance for the year 1995-96.

In course of time the company has extended its product range to include manufacture of Flexible
Intermediate Bulk Containers (FIBC) and Wide Width Woven Fabric (WWWF)

2.3: VISION STATEMENT

To be a global leader in Synthetic fabrics and delight the customer by creating products that offer
unmatched superiority.

2.4: MISSION STATEMENT

Our mission is to become a benchmark organization in packaging industry. For this we are
constantly striving to develop our organization, enhance professional skills and upgrade
infrastructure system so as to be highly successful in the competitive environment of the new
millennium.

2.5: Objectives of the Company

The objectives of the TULSYAN Company are as follows

Profit Maximization
Minimization of Waste
70%-80% Employment opportunity
Employee Welfare


Creating social Responsibility
Learning and development
Family focus
Hygienic factors

2.6: Products PROFILE

» Cement Bag

» Fertilizer Bag
» HDPE Sacks
» HDPE Woven Sacks
» HDPE and PP Woven Sacks
» Jumbo Bags
» Packaging Sacks
» Polypropylene Woven Sack
» Sandbags
» Woven Bags
» Woven Sacks
» Woven Sacks Bags

TULSYAN Company is producing wide variety of products to fulfill the requirements of the
different customers.

HDPE and PP Woven sacks are now firmly established as a preferred means of bulk packaging
manually handled materials for storage and transport. Except where restricted by Government
legislation, user preference for woven sacks has been almost total. Of the alternate sack
materials available, jute output is limited by a stagnant jute cultivation level as well as by
steadily increasing prices. Paper sacks have also been limited by the growing pressure against
tree-felling for pulp. It is therefore, inevitable that the woven sacks market will grow steadily as
Indian industry expands.


FIBCs are more recent innovation on the international scene. The rising cost of manual handling
in developed countries has forced them to adopt more of automated techniques for bulk product
handling.

In the case of bulk commodities with large volume handling requirements, tank cars for road or
rail transport, bulk carriers for marine transport and silos and conveying systems for storage are
well established. Economics of scale play an important part in cost control. However at points
of distribution of such commodities or where the commodity volumes are not so large and
intermediate bulk handling system is required. This requires the availability of a safe,
convenient and cost effective container for storage and handling. The FIBC has proved to be the
most effective container to meet these needs.

FIBCs have been standardized in size ranges from 200 kg to 4 tones depending on bulk density
and modes of transport and handling. Loss protection and safety aspects have a major bearing on
the FIBC design as do the lifting, transport, loading and unloading methods. Further the
commodity properties have a bearing on the container stability which also needs to be taken care
of by proper design. The FIBC has, therefore, a much higher level of design engineering input
when compared to the conventional small woven sack, even though both use similar types of
fabric.

Besides stronger and more reliable fabric quality the FIBC calls for properly designed lifting
straps, a body configuration with reinforcements to ensure stability during storage and handling
and suitable inlets and outlets for ease of loading or unloading and for protection against spillage
or leakage.

Infrastructure

Woven Sacks manufacturing facility – Extruder, Looms, Stitching Machines

Liner manufacturing – Extruder and Cutting Machine


Serving Thread or Stitching Yarn – Extruder, Twister and Loom

Webbing – Extruder and Loom

The company is having well equipped chemical and physical laboratory to monitor the quality of
the product. Besides the sophisticated plant and machinery, the company has a matching in-plant
working environment.

Domestic Manufacturers

GAIL.
GE Plastics India.
Haldia Petrochemicals.
IPCL.
Karnataka Petrosynthese Limited.
NOCIL.
Reliance.
Supreme Industries

International Manufacturers

Exxon Mobil.
Honam Petrochemicals.
Hyndai Petrochemicals.
Samsung.
Shell.
Dow Chemicals.

Tulsyan Group of Companies

 Established in 1938

 Activities


 Iron and Steel Trading

 Manufacturer of Tin Containers

 Manufacturer of Cardboard Boxes

 Manufacturers and Exporters of Leather Products

 Manufacturer of Knitted Textile Gloves

 Cold Storage Activities

 Rice Processing Division

 Tulsyan NEC Limited

 Iron and Steel

 Windmill

 Technologies

 Synthetic

 Turnover

 $ 180 Million

 Tulsyan NEC Limited

 Flagship Company of the Group

 Turnover $ 60.00 Million

Tulsyan NEC LTD

 Divisions

 Iron and Steel

 Windmill

 Technologies

 Synthetic


Iron and Steel Division

 Activities

 Manufacturing- CTD/TMT/CRS Steel Bars

 Trading

Turnover

 $36.00 million

Windmill Division

 Eight in Number- Power Generated is for self consumption for the Iron
and Steel Division
 Capacity 1800 KWA

Technologies

 Activities

 Web Designing/Hosting

 Medical Transcription at Chennai

 30 Foreign Language Translation


COMPETITORS PROFILE

There are 536 Companies who are in the same industry in India, some of the major

Companies listed below with their brief manufacturing details.

1) Ispa Exim Pvt. Ltd.
Manufacturers and exporters of HDPE sacks, polypropylene woven sacks, polypropylene woven
fabric, laminated fabrics, unlamented fabrics, laminated fabrics, tea bags, food packaging paper
bags, valve bags, t-shirt bags, cement bags and printed bags.

2) PVN Plastics Industries
Engaged in manufacturing of HDPE and PP woven sacks, woven polypropylene sacks, laminated
woven fabrics, PP laminated gusseted bags, boxed bags, shopping bags, lumber cloth, sand bags,
BOPP printed sandwich bags and wide with fabric.

3) Vivek And Company
Exports and manufactures woven sacks, woven sacks bags. Also deals in jute twine, jute yarn,
jute soil saver, jute mesh, jute geo textiles, geo jute, jute sheets, sand bags, natural jute fiber sand
bags, shopping bags and jute shopping bags.

4) Welpack Industries Ltd.
Engaged in manufacturing and exporting of hdpe bags, hdpe t-shirt bags, hdpe vest carrier bags,
hdpe shopping bags, hdpe carry bags, hdpe pick up bags, printed hdpe bags, plain hdpe bags,
hdpe plastic bags and 20 micron hdpe bags.


5) Lamifab Industries
Manufacturers and exporters of woven sacks, PE woven sacks, PP woven sacks, un laminated
woven sacks, laminated woven sacks, PP laminated sacks, PP un laminated sacks, PE laminated
woven sacks, PE un laminated woven sacks.

2.8: Directors & Key Management Personnel:
PROMOTOR DIRECTORS

1) SHRI.L.K.TULSYAN
2) SHRI.SANJAY TULSYAN

PROFESSIONAL DIRECTORS

3) SHRI.SOUNDARARAJAN
4) SHRI.P.T.RANGAMANI
5) SHRI.A.P.VENKATESWARAN
6) SHRI.S.RAMAKRISHNAN
7) SHRI SANJAY AGARWALLA
8) SHRI.V.KIRUBANANDAN

CHIEF EXECUTIVES

Shri Ram Babu - General Manager (Rolling Division)
Shri Dinesh Goyal - General Manager (Ingot division)
Mrs. Uma - DGM (F&A)
Shri K.Anantheeswaran - Billet division)
Shri A.P.Harish - President (Operation)
Shri K.Chakraborthy - General Manager (Works)
Shri Sandip Lahurawalla – General Manger Exports
Shri J.M.Manohar - Manager Exports
Shri Murari Lal Sharma - General Manager Raw materials
Shri.V.Padmanaban – General Manager Marketing

2.9: AWARDS AND ACHIVEMENTS

Export House

State Award For Excellence In Exports From Government Of Karnataka For The Period 1995 –
1996


State Award For Excellence In Exports From Government Of Karnataka For The Period 1996 -
2000

AIFTMA Export Award 1997 – 1998

All India Flat tape Manufacturers Association From National Association Of Plastics Woven
Sacks Manufacturer For Excellence In Exports For Medium /Large Scale Sector For The Year
1997 - 1998

AIFTMA Export Award 1998 – 1999 -II

Export Promotion Awards 2000 – 2001
Large /Medium Scale – II

ISO Certified In 2002

Rated by Business Barons As One Among The 1st 500 Most Outstanding Companies In The
Country For The Financial year 2002


Organizational chart

Managing
Director

Management Chief Executive
Representative Officer

General General
HOD HOD
Manager Manager

HOD (Purchase HOD (Purchase Human Commercical
HOD Assistant Accountant
& Spare) of Material) Resource Maneger

Purchase
Su pervisor Superviser Assistant Assistant Assistant
Officer

Workers Workes Superviser

Worker


Chapter3


3.1: PRODUCTION DEPARTMENT

Production is the conversion of raw materials into the end product by using processes, machines, men,
tools, and so on. It is the process by which goods and services are created.

As we study the overall organization we come know that the company is following the Pull System
process of production.

PULL SYSTEM

It is a system of production in which products are produced only as they are ordered by customers or to
replace those taken for use. Or a JIT system.

5 P’S OF PRODUCTION MANAGEMENT

Production management is related with five p’s namely the product, plant, process, programs, and
people.

1. Product:- In the TULSYAN NEC LTD product means woven sacks manufactured by using
polypropylene and hydro poly ethylene and these are plastic raw materials.
2. Plant: The plant is broad concept which is used produce the product. The machineries used to
manufacture the given product are called the plant.

Manufacturing facilities

The company posses world-class manufacturing facilities for production of high quality
Polypropylene (PP) woven fabrics, woven sacks / bags. The machine at the companies facility
incorporate latest technology that provide great flexibility and cost saving in manufacturing
process. The company’s manufacturing facilities include the following :


 Extruder
 Cutting and stitching machine
 Lamination plant
 Woven bags sewing machine
 Circular weaving machine
 Hydraulic bailing press for HDPE/PP bags

Extruder:- The company has two advanced range of
extruder machines, which are based on latest European design technology to produce different kinds of
yarns in colours. Both the extruders are based on of Kolsite make produces finest quality of yarn along
with environment friendly operations.
Extruders (PP / HDPE Stretching Lines)

Features:

Very Fine Quality of Yarns.
High Flexibility to produce different
kind of coloured yarns.
European design technology.
Make: GCL&WINDSOR
Capacity:1000 KG/HOUR
Number of machines:3units

Cutting and Stitching machine: The company use latest
model of cutting and stitching machines made by GCL. The new age
machine cuts, bottom folds and stitches the bags or sacks. The
complete processing is done just from the tubular fabric roll. These
machines can carry operations like counting, staking and conveying.

Make: GCL

Type: cutting and stitching machine


Capacity: 3000bags/hrs

Lamination Plant
“Touch Screen Type” Operation Panel &
Synchronized System as Standard Equipment
Line Speed: Max 120 meter/min
Equipped Auto Roll Changing System

Woven Bag Sewing Machine

The company has installed high speed, double needle
woven sewing machines specially designed by Arm
Strong. The double needles of the machine provides a
long lasting stitch. These machine can efficiently stitch
heavy weight material such as HDPE, PP, Multiwall
Papers and other type of woven sacks. The bobbling
stitching system of the sewing machine is designed to
enhance the overall production efficiency.

Can also use any type of cotton and synthetic yarns

Features :

Electrically operated
Easily convertible in single needle machine
Easy adjustment of distance between the needles
Fully automatic lubrication with oil recycling
Number of machines : 20


Circular Weaving Machine
The new generation circular weaving machine with
six shuttle is designed to weave fabric suitable for a
variety of applications like plastic
granules/fertilizer/chemicals and smaller covering
fabric/tarpaulin etc. Additionally, these machines
have an option to produce Anti-slip fabric on special
request.

Features :

Type : Circular weaving machine
Make : GCL
6-shuttle: 80 looms
Capacity : 200000 meter/day

Hydraulic Bailing Press For HDPE/PP Bags
This is hydraulic bailing press which is used for pressing PP/HDPE bags to minimize the volume
for convenient packaging & transporting. These machines are designed for free shift operation
and can produce different pressure as per the
requirement.

Features :

Compact hydraulic block
Overload protection valves
Push button operation
Preset bale height table auto stop
Pressure regulator and gauge
Emergency brake

3. Process: - There are various processes involved in the Production activity.

 Extrusion
 Weaving


 Quality analysis
 Fabric printing
 Cutting
 Stitching
 Bailing

4. Programs: - The programs include the activity concern with the company’s achievement to the
strategic goals of the company the retaining the talented employees the organization.

Since company has started so many years ago it has expanded its business in overall India and its
supplying of goods and services according to the requirements of the customers .

5. People: - People refers to the workers or employees working in the Organization. This company is
providing the employment mostly to the persons who are having the technical background such as
Engineers, Diploma holder, ITI holders etc and occasionally it provides employment opportunity to the
non technical persons. It has efficient HUMAN RESOURCE DEPARTMENT to maintain and nurture the
human relationship with in the organization.

.

Product portfolio:-

A customer focused, innovative and solution-driven company, it holds expertise in successfully
manufacturing and supplying high quality packaging products. The company is committed to provide
their clients a one stop packaging solution. The company uses only high grade raw materials such as
HDPE/PP granules, LDPE/LLDPE granules, master batches and printing ink, for products which are
procured from reliable and trusted vendors. The products are used for the packing of different products
such as cement, sand, polymer resins and agro products.

The company offers the following:

PP/HDPE Woven Sacks
FIBC bags
Polypropylene Asbestos Bags


Polypropylene Container Liners
Polyethylene Liners
Coated or Uncoated Bags
Jumbo Bags

Manufacturing Process

PP Woven sacks bags:- The company offers PP woven sacks that are available in a host of
fascinating colors, designs and sizes. These allow sufficient passage of air to the packed items and can
also be laminated for moisture proof packing of different items. These products ensure the
phenomenon of ‘breathing’ space in packed grains.

Salient features of PP woven bags:-

Light weight and easy & cheap to transport

Bright 2 / 3 / 4 color printing offer aggressive marketing prospects

No problems in stacking. Can be gusseted to further improve stacking

High Tensile strength and durability

Cost effective in comparison to other alternative packing material

No Seepages specially in poly lined or laminated bags

Technical specifications for different areas it is used

For Fertilizers:

Size – Length 915 mm, Width 610 mm

Open mouth

Bottom stitched duly laminated with PP/LDPE inside

Colour Milky White or others

Printed with flexo printing as per IS - 9755 – 1985 for packing 50.0 kgs For Cements:


Size – Length 710 mm, Width 480mm with self closing valve, Weight 70-75 gms per bag

Printed with flexo printing for packing 50.0 kgs as per IS - 11652 –1986

For Sugar:


Open Mouth Or Top Hemmed

Bottom Stitched with inside separate loose liner bag of 25 micron thickness stitched at bottom and

printed with flexo printing for packing 50 kgs Sugar



Bottom Stitched with inside separate loose Liner bag of 25 micron thickness stitched at bottom

and printed with flexo printing for packing 25 kgs Sugar

For Food Grains:



Bottom Stitched with inside separate loose Liner bag of 25 micron thickness stitched at bottom OR

without liner and printed with flexo printing for packing 50 kgs food grains.



Bottom Stitched with inside separate loose Liner bag of 25 micron thickness stitched at bottom OR

without Liner and printed with flexo printing for packing 25 kgs food grains.

For Fabrics:

PP / HDPE woven circular fabrics are available in rolls of different colors / shades, width and other

specifications as per the clients’ requirements.


They are put to direct uses or for conversion to Bags and Sacks at customers' end.

Following is the manufacturing process of PP woven sacks bags

The process of manufacturing PP woven bags involves mixing raw materials starting with PP or
HDPE pellets and other additives, extruding the raw materials into a yarn, weaving the yarn into
a fabric in a process similar to the weaving of textiles, laminating the fabric, cutting the fabric
into appropriate sizes for the bags, sewing the bags, printing onto the bags and finally
packaging the bags.

a) Tape Extrusion:
The raw material consisting of Raffia grade polypropylene and suitable master batch is fed
through a plastic extruder fitted with a `T’ die. The extruded sheet is cooled and slit into small
width continuous tapes, which pass over a hot air oven during which the orientation of tapes take
place. These tapes are stretched and annealed, to achieve the required denier rating.

b) Fabric Weaving:
These tapes are wound on cheese winders which are used on circular weaving looms to produce
continuous Circular fabric of the required lay flat width. The fabric produced is wound into
rolls.


THE CIRCULAR WEAVING MACHINE

a) Sacks Production:
The Woven fabric in roll form is unwounded and cut into required length units. One end of
fabric unit is folded at one of its corners such that after stitching a spout opening is formed. The
other side of the fabric unit is fully stitched to get a woven sack. These sacks are tested for
strength and dimensional requirements as per the buyer’s specification. The approved sacks are
printed as per buyer’s requirement. Then the sacks are piled, compressed in a baling press, baled
and dispatched.

b) Waste Recycling:
The waste generated during the entire production process is converted into reusable chips using
an agglomerated.

Manufacturing process of Flexible Intermediate Bulk Container(FIBC)

A Flexible Intermediate Bulk Container, FIBC , big bag, bulk bag, or Super Sack®[1] is a

standardized container in large dimensions for storing and transporting dry, flowable products,

for example sand, fertilizers , and granules of plastics.

FIBCs are most often made of thick woven polyethylene or polypropylene, either coated or

uncoated, and normally measure around 110 cm or 45-48 inches in diameter and varies in height

from 100 cm up to 200 cm or 35 to 80 inches. Its capacity is normally around 1000 kg or

2000 lbs, but the larger units can store even more. The average bulk bag made to ship one metric
ton can weigh between 5-7 lbs.

Transporting and loading is done on either pallets or by lifting it from the loops. Bags are made


with either one, two or four lifting loops. The single loop bag is suitable for one man operation as

there is no need for a second man to put the loops on the loader hook. Emptying is made easy by

a special opening in the bottom such as a discharge spout, of which there are several options, or

by simply cutting it open.

History
Although there is disagreement on exactly where FIBCs were first made and used, it is certain

that they have been employed for a variety of packaging purposes since the 1940s.

These forerunners of the FIBC as we know it today were manufactured from PVC rubber and
generally utilised within the rubber industry for the transportation of carbon black to be used

as a reinforcing agent in a variety of rubber products. One of the first known importers of the

PVC containers into the United States is Robert Williamson, founder and CEO of B.A.G. Corp., in
1969.
These first PVC bags were imported from Japan as an efficient way to solve the loading and
handling problem faced by crop dusters.

By the 1960s, with the development of polypropylene combined with advances in weaving, the

bulk bags as we know them today came into being and were rapidly adopted by a wide variety

of oil and chemical companies to store and transport powdered and granular products.

It was during the oil crisis of the mid 1970s that the FIBC really came into its own for

transporting huge quantities of cement to the Middle East from across Europe for the rapid
expansion of the oil producing countries.

At its zenith, upwards of 50,000 metric tons of cement was being shipped out on a weekly basis

to feed the vast building programme. The Flexible Intermediate Bulk Container Association

(FIBCA) was formed in 1983 by the companies that were manufacturing bulk bags at that time.


The modern FIBC transports a growing figure of over ¼ billion tonnes of product each year and

is used to handle, store and move products as varied as cereals to powdered chemicals and

flour to animal feeds. With a capacity of up to 3m³ and load capability ranging from ½ a tonne

to two tonnes FIBCs are highly cost effective, easily recyclable and ideal for virtually any free-

flowing granule, powder, pellet or flake. FIBCs are also being developed to hold and filter fluid
products.

Process

a)Tape Extrusion: The tapes are produced by extrusion of polypropylene with master batch
using a `T’ die. Orientation, stretching and annealing of the tapes are done to obtain the required
denier rating. As the tapes are wider and thicker, in order to facilitate weaving, the tapes are
folded into three layers use a tape folding equipment or slit into fine fibers using a fibrillate to
obtain compact fibrillated tape, which are wound on cheese winders.

b)Fabric weaving:

Using an eight shuttle circular loom, the folded or fibrillated tapes are woven into a circular
woven fabric of required lay flat width, which are wound into rolls.

c) FIBC production:

The circular woven fabric is cut into required length. The top and bottom covers are also woven
fabric which is slit opened to give open width fabric. The inlet and outlet spouts are small
tubular woven fabric. The handles are made out of knitted polypropylene fibers.

All these elements are cut into the required size as per the design of FIBC and are stitched
together, to obtain the circular woven fabric it is cut into required length. The top and bottom
covers are also woven fabric which is slit opened to give open width fabric. The inlet and outlet
spouts are small tubular woven fabric. The handles are made out of knitted polypropylene fibers.
All these elements are cut into the required size as per the design of FIBC and are stitched
together, to obtain the FIBC of required capacity and


Safety factor. An inner layer of HDPE blown film is also employed to avoid seepage. The
single use FIBCs employ less denier tapes than the multi-use FIBCs of corresponding capacity.

d) FIBC Testing:

The following tests are conducted on FIBCs

i) Ultra-violet stability test of polypropylene fabric.
ii) Tensile testing of FIBC fabric and handles.
iii) Test for resistance to impact collusion
The test parameters are based upon the design and utility conditions of FIBCs.

Printing & Packing: The quality approved FIBCs are printed as per customer’s requirement
and baled using a baling press.

Classification of FIBC

 Construction
 Lifting options
 Electrostatic properties
 Industries served
 Flood barriers use
 Construction:-
 U-Panel construction
 Circular/Tubular construction
 Baffle construction
 Four side panel construction
 Round construction

 Lifting options:-
 Cross corner lifting loops
 Corner lifting loops
 Four loops


 Two loops
 Sling loops
 Full loops

 Electrostatic properties:-

Type - A - no special electrostatic safety features
Type - B - Made from plain (non-antistatic) polypropylene. Type B bags are not capable
of generating propagating brush discharges. The wall of this FIBC exhibits a breakdown
voltage of 4 kilovolts or less.
Type - C - Conductive FIBC. Constructed from electrically conductive fabric, designed to
control electrostatic charges by grounding. A standard fabric used contains conductive
threads or tape.

Type - D - Anti-static FIBCs, essentially refers to those bags which have anti-static or
static dissipative properties without the requirement of grounding

 Industries served:-
 Chemicals
 Fertilizers
 Fiberglass
 Food Products
 Grains
 Mining (Used to hold shotcrete)
 Pharmaceuticals
 Pigments
 Plastics
 Refractories
 Rubber Additives
 Seed

Polypropylene Products
The company has engaged in manufacturing, exporting and supplying polythene and bags.
These are manufactured using fine quality raw material obtained from trusted and reputed
vendors across the nation. All the products that company manufactures are in accordance with
industrial standards and strictly follow the defined parameters.


The company offer the following:

Jumbo Bags

The company put forward high quality jumbo bags.
Manufactured using high quality raw material that is
procured from trusted and reputed vendors across the nation
these possess features like wear &tear resistance, strength
and long life. These are in extensive demand in the market
and are widely appreciated by the clients due to its flexible
intermediate bulk containers that are custom tailored so as to
suit the individual requirements. Used for carrying bulk
cargo in single package option, these are widely
acknowledged by the varied industries. Clients can avail
these within stipulated time frame and at market leading
prices.

Product Specifications of jumbo and FIBC bags

Lifting: 4 Corner Loops/ Cross Loops / 2 Loop
Water Proof: Pe Liner / Lamination
Safe Working Load: 500 / 1000 / 1250 / 1500 Kgs
Safety Factor: 5:1 / 6:1Trip :Single / Multi Trip
Printing: Upto three colors on each side
PP uncoated: Allows the content to breathe for long term storage of grains and food stuffs
PP Coated: Extrusion coating prevents contamination and makes it dust proof
PE Liner: Ensures protection against moisture and dust
PP coated with dust proof seams: Prevents pilferage and leakage of fine powdered material,
through the seams
Sizes: Bases (cms) 90x90, 95x95, 100x100, Height (cms) 90,100,110,120,130,150,180
available in (u+2)pannel & circular body
PP buffle bag , Q bag to prevail burging


Polypropylene Asbestos Bags

The company is engaged in offering Polypropylene Asbestos
Bags that are manufactured using high quality raw material that
is procured from trusted and reputed vendors across the nation
these possess features like wear &tear resistance, strength and
long life. The products are in high demand among the clients
due to their various designs and excellent printings. Having
expertise in manufacturing clear bags with great printability, the
company also offer these at cost-efficient prices. Clients can
avail these within stipulated time frame.

Polypropylene Container Liners

The company put forward high quality polypropylene container
liners. These are made using high grade material such as
polyethylene or polypropylene. These dry bulk container liners
are also known as shipping, sea bulk or sea land container liners
and are stitched using coated or non-coated fabric. Known for
economical value than the conventional blown film liners,
these are supplied in bulk to cater to the requirements of our
clients spread across the globe and within the stipulated time
frame.

Polyethylene Liners

The company is also engaged in offering Polypropylene Liners
that are manufactured using high quality raw material that is
procured from trusted and reputed vendors based across the
nation these possess features like wear &tear resistance, strength
and long life. These are manufactured at a completely automatic
unit packing system together with palletizing facility, which is
available at the plant. These are in extensive demand in the


market and company offers these at cost-efficient prices. Clients can avail these within stipulated
time frame.

Coated or Uncoated Bags
The company also put forward high quality coated or uncoated bags that are manufactured using
high quality raw material that is procured from trusted and reputed vendors of the market. These
possess features like wear &tear resistance, strength and long life. Also, these are in extensive
demand in the market and are widely appreciated by the clients. Acknowledged as per the
industrial standards, the company offer these at cost-efficient prices. Clients can avail these
within stipulated time frame and can also customize these as per their needs and requirements

Advantages of HDPE / PP Woven Sacks and Bags

Moisture Proof :

HDPE / PP Bags are inherently moisture repellent.

Light Weight :

HDPE / PP Bags being light weight, offers easy and cheap transportation.

Printing :

Bright 2 / 3 Color printing offers aggressive marketing prospects.

Stack ability :

No problems in stacking. Can be gusseted to further improve stacking.

Strength :

High Tensile strength and long life. No corrosion.

Economical :

Highly economical compared to other alternative packing material.

Seepage :

No Seepages specially in paper lined bags.


PROCESS FLOW CHART FOR WOVEN SACKS/FIBC
Raw Material PP/HDPE + Master Batch

Extrusion

Sheet Die

Cooling Water Bath

Sitting Unit

Hot Air Woven

Stretching Unit

Annealing Unit

Tape Folding Unit

Cheese Winders

Quality Control Testing


Weaving on Looms

Fabric Rolls

Fabric Cutting Fabric Stitching

Fabric Stitching Fabric Lamination

Quality Control Testing Fabric Welding

Printing Quality Control

Bailing Bailing

Dispatch Dispatch

FIBC’S & SMALL SACKS WIDE WIDTH FABRIC


3.2 Purchase Department

The most important aspect in any organization is flow of materials from outside the organization
to fulfill the requirements of the each department. This activity is taken care by the PURCHASE
DEPARTMENT.

Purchase department plays an important in the organization effectiveness and its productivity.
Purchase department has to make timely order of the raw material for the uninterrupted
production process, and the spare parts for the machines which helps in orderly replacement of
spares with the production moving.

Objectives of the purchase department:

A. To procure quality raw material at the least cost.
B. To maintain sufficient stock at go downs.
C. To preserve the stock at maximum care.
D. To maintain safety stock level.
E. Estimate the future fluctuation in prices of raw material arrangement of finance to fulfill
the maximum stock level.

The department is responsible for the following:

 Domestic purchase
 Imports
 Trading of Raw Material
 Dispatches to factories
 Storage at godown
 Excise obligation


Hierarchy of purchase department

Purchase
Officer

Store Store
Officer assistant

Helpers Helpers

Helpers

IN TULSYAN NEC LTD the purchase department may be split into two
divisions:

Department of purchase of spare parts
Department of purchase of raw material

Purchase of spare parts department:

Purchase of the spare parts is maintained by the Bangalore branch itself. Here requirement of all
the machines spares and parts are looked by this department. Each production department head
will place orders that they require, Sometimes the department will assess the required spares and
parts and place order in time or refill of the spare parts stock. Head of purchase department,


based on the past records will identify the requirement. The stock of spares and parts are
maintained in the average stock level.

The process of purchase of spares and parts are as follows:

They will send an indent to the supplier of the spare parts including specification of the spare
parts. Supply will be received approximately after certain days.

LOCAL - 8 TO 10 DAYS
OUTSIDE - 15 TO 20 DAYS

Process of Purchase of spare parts
Good receipt cum inspection note (GRIN)

Quality & quantity (Store check)

Quality department checker (jobbers)

Department head (GRIN sign)

Accounts department (payment)

This process chart gives you a clear picture how ordered spare parts will be received in the organization.


PROCESS OF PURCHASING OF RAW MATERIAL

General
manager(Raw
material)

Manager(Raw
material)

Executive Executive Go-down
(Raw material) (Imports) incharge

Responsibilities & Authorities:

Responsibility & Authorities of GM are covered in quality manual.

Manager (RM)

Responsibilities

 Maintain inventory status.
 Maintain subcontractor purchase and payment statement.
 Verification of Excise Documents
 Import material follow ups
 Co-coordinating with factories for their requirements and their ensuring.
 Timely deliveries.


Authorities:

Authorizing excise documents.
Releasing indents purchase order with approval of the GM.
Dispatch order for sales

Responsibilities Executive (Imports)

o Preparation of import clearance documents.
o Execute all import materials clearance formalities.
o Bonding/De-bonding or import materials.
o Clearance and transshipment of stores from the port of entry.

Responsibilities of go down in-charge

 Receipt of stores.
 Proper storage & handling of materials.
 Preservation and safety of material.
 Issue of raw material as per the instructions from(RM).
 Ensure proper loading.

Major suppliers of the raw material

 Reliance industries ltd
 Indian petrochemical corporation ltd
 Gas authority of India ltd
 Haldia petrochemical ltd


QUALITY CONTROL DEPARTMENT

The company believe that quality is essential to the success of any business therefore company
has adopted good quality practices and try to instill these practices into the organization's culture
and our product range. With the strict quality measures, the company has mastered the art of
producing flawless products and are constantly incorporating innovations. Aspiring for the total
customer satisfaction, company lay stress on efficiency, quality and commitment. The main
objective is to manufacture and supply the best quality product to the world with latest and
advanced technology. Company has commit to provide material quickly, flexibly and with
service tailored directly to the needs.

The products are checked on the following quality parameters:

Finish

Durability

Resistance to water

Strength

Quality is desired attributes and characteristics in material, semi finished products and finished
item it is a relative term and can be expressed based on end usage.

In simple words quality is doing the right things at first time and every time.

Quality is:

Degree of performance
Degree of preference.
Degree of excellence
Promises made to the customers
Quality of design


There are 8 dimensions of quality:

i. Performance
ii. Features
iii. Reliability
iv. Conformance
v. Durability
vi. Serviceability
vii. Aesthetics
viii. Perceived quality

QUALITY POLICIES

 We shall make value additions to our customers by providing world class products.
 Meet to the full satisfaction of customers.
 Quality by enhancing productivity and efficiency.
 Being internationally competitive.
 Achieve quality products with total support from all their employees.
 Checking continuous improvement.
 To listen openly to its customers.
 To design the products they want first.
 Produce the products cheaply not compromising with quality.
 To offer excellence to your customer.
To listen to empower and motivate your employees

In TULSYAN NEC LTD each department head or supervisor especially in extrusion and

weaving section, checks the tape quality, fabric strength which is needed to meet the demands
and requirements of the customers.


They use a special machine to check the strength of the fabric after the weaving of sample, then
if any defects are found it will be informed to the departmental head or the concerned person in
charge.

Currently the company is looking towards covering their quality under various international
market standards namely Srilanka, UK and middle east countries .The company is also getting
the rebars certificate from CRM Beligum. The company has a Microsoft ERP solution which
will further add quality system.

Quality check machine


INTRODUCTION

Finance is regarded as the lifeblood of the business enterprise. Financial management is very
important to any organization. Lack of this paralyses the activities of the firm. Hence, it is
essential to have a sound financial system organized in an organization or enterprise. Every
organization needs money and the management of it is very important in any financial system of
an organization. Tulsyan has very sound financial department and well trained and experienced
employees to carry out the financial activities. Here every activity is carried out with utmost
care

According to the Consolidated - Audited financial statement for the Year 2011, total net

operating revenues increased 46.28%, from INR 608.32 tens of millions to INR 889.88 tens of
millions.

Operating result decreased from INR 53.9 tens of millions to INR 53.58 tens of millions which

means -0.59% change. The net income of the period increased 6.89% reaching INR 11.02 tens of

millions at the end of the period against INR 10.31 tens of millions last year.

Return on equity (Net income/Total equity) went from 16.01% to 15.25%, the Return On Asset

(Net income / Total Asset) went from 3.16% to 2.88% and the Net Profit Margin (Net
Income/Net Sales)

went from 1.69% to 1.24% when compared to the same period last year.

The Debt to Equity Ratio (Total Liabilities/Equity) was 529.15% compared to 507.13% the

previous year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from 2.43 to

2.18 when compared to the previous


Objectives:-

The objectives of financial department are as under:-

 To ensure that accounting records of various divisions are properly maintained.
 To ensure that sales realization are properly accounted and remained the marketing
section from time to time over the debtors portion in order to enable them to collect the
dues.
 The account section objective is also to see that regular payments of milk bill are made to
milk producers on priority.
 To see that the payments to creditors are made within stipulated time.
 Account section has to provide management timely information about the financial
position of the union and guide them as to viability of the proposals that come in the
course of business activity.
 The other objective of finance section is to keep the management / board appraised of
monthly trading and P & L a/c figures.
 To include timely submission of financial statements to auditors and ensure smooth audit
is conducted and give audit reports to management.

Functions:-

The main functions of the financial department are as under:-

 To manage cash.
 To manage bills.
 To manage transportation bills.
 To manage pay bills.
 To manage accounts.

Working capital ratios
Ratio Analysis can be defined as the study and interpretation of used relationships between
various financial variables, by investors or lenders. It is a quantitative investment technique for


comparing a company's financial performance to the market in general. A change in these ratios
helps to bring about a change in the way a company works. It helps to identify areas where the
management needs to change.
I would deal with some of the predominant ratios more relatively applicable in working capital
management.

Current ratio
This ratio establishes the relationship between current assets and current liabilities. the purpose
of this ratio is to find out the extent of current assets available against each rupee of current
liability of the firm

Current ratio=current assets/current liabilities

Current assets include cash, marketable securities, debtors, inventories, prepaid expenses etc.
Current liabilities includes creditors, bills payable, accrued expenses, short term bank loan,
income tax liability and long term debt etc.

year Current assets Current liability Current ratio

2009-2010 189.03 125.785 1.502

2010-2011 258.87 167.935 1.5414

Interpretation: From the year 2009-10 the Current ratio has decreased but in the year 2010-11 the
Current ratio has increased.

Quick ratio
This ratio is called as acid test ratio or Quick ratio. It establishes the relationships between liquid
assets are those which can be converted into cash without any loss or delay. all current assets,
excepting stock and prepared expenses, are considered to be liquid assets. Liquid liabilities are


those liabilities which are payable immediately. all current liabilities, excepting Bank overdraft,
are considered to be liquid liabilities.

Year quick assets quick liability Quick ratio

2009-2010 108.115 125.785 0.85952

2010-2011 146.665 295.01 0.49715

Interpretation: From the year 2009-2010the quick ratio has decreased but in the year 2010-2011the
quick ratio has increased

REPORT OF THE DIRECTORS TO THE SHAREHOLDERS

We take pleasure in presenting the 64th Annual Report of the Company

together with the Audited Balance Sheet, Profit & Loss Account and Cash Flow Statement for

the year ended 31st March, 2011. FINANCIAL RESULTS Rupees in Lakhs 2010-2011 2009-

2010 Profit before Depreciation and tax 2365.39 2258.48 Less: Depreciation 857.88 813.33

Profit for the year before exceptional items 1507.51 1445.15 Less: Exceptional Items 126.96

85.73 Profit for the year 1380.55 1359.42 Less: Provision for Current Tax 290.00 360.00

Deferred Tax 156.22 150.17 Add: Surplus brought forward 3334.84 2698.85 Amount available

for appropriation 4269.17 3548.10 Appropriations: Interim dividend 50.00 – Corporate Tax on


Interim Dividend 8.50 – Dividend 50.00 100.00 Corporate Tax on dividend 5.31 11.26 General

Reserve 105.00 102.00 Balance carried forward 4050.16 3334.84 OPERATIONS AND

OUTLOOK During the year under review, Sales and other receipts grew 32.93% YOY to Rs

. 84310.61 Lakhs. EBITDA grew by 4.73% YOY to Rs. 2365.39 Lakhs

and PAT grew by 10.02% YOY to 934.33 Lakhs. Your directors expect a

growth of 35% in the top line for the FY 2012.

As in the last year during the current year also there were drastic

power cuts consequently effecting our costs and also the production.

Due to these power cuts we could not utilize our capacities in full

thus losing out on economies of large scale production. The 35 MW

captive thermal power plant at Gummudipoondi is expected to commence

production from June 2012. During the current year your company

proposes to set up an additional captive Power Plant of 35 MW capacity, additional Induction

furnaces of 4 numbers of 20T each for billet manufacturing with annual installed capacity of

274000 MTPA this will be set up at the new site where the captive power plant of 35MW is

under implementation. The company is setting up a Wire Rod and Bundling machine with a coal

gasifier at the existing rolling mill division in Gummudipoondi. DIVIDEND Your Company

paid interim dividend of 10% during January 2011. Your directors are now pleased to

recommend a final dividend of 10% on the paid up capital of Rs. 5 Crore. This together with the

interim dividend aggregated to a record total dividend of 20% for the financial year ended 31st

March 2011, on the paid up capital of Rs. 5 Crore. DIRECTORS

Shri V. Kirubanandan, Director of the Company, retires by rotation and


being eligible, offers himself for re-election.

AUDITORS

The Auditors of the Company M/s. C.A. Patel & Patel, Chartered

Accountants, Chennai, retire at the ensuing Annual General Meeting of

the Company and are being eligible, offer themselves for

re-appointment.

Some of the accounting notes of the company

Contigent liabilities:- All liabilities have been provided for in the accounts except

liabilities of a contingent nature, which have been disclosed at their

estimated value in the Notes to the Accounts wherever practicable.

Cash &cash equivalents:- Cash and cash equivalents in the cash flow statement comprise cash at

bank and in hand and short-term investments with an original maturity

of three months or less.

Foreign exchange transaction:- All foreign currency transactions are recorded at the average
exchange

rate prevailing during the transaction occur. Outstanding balance of

foreign currency monetary items are reported using the period end

rates.

Segment reporting:-

Segments have been identified in line with the Accounting Standard on


Segment Reporting (AS 17), taking into account the organizational

structure as well as differential risk and returns of the segments

Tax & income:- Tax expenses for a year comprises of current tax and deferred tax.

Current tax has measured at the amount expected to be paid to the tax

authority, after taking into consideration, the applicable deductions

and exemptions admissible under the provisions of the Income Tax Act,

1961.

Deferred tax reflects the impact of current year timing difference

between taxable income and accounting income for the year and reversal

of timing difference of earlier years. Deferred tax is measured based

on the tax rates and the tax laws enacted or substantively enacted at

the Balance Sheet date.

Lease payments and receipts:- Lease payments have been made towards land at Chennai and
amortised on

a straight line basis during the period of lease.

Lease payments have been made towards Hire Purchase of Vehicle.

 Details of secured loans:-
Loans from Banks secured by exclusive charge on land, buildings and

plant and machinery other than those specifically charged.
Term Loan from Financial Institution is secured by assets purchased

under the loan and are guaranteed by the Managing Director and two

Directors of the Company.


Hierarchy of marketing department

General
manager

Domestic Export
market market

Executive Executive
satish maria

Sales Sales Sales

Marketing is a process of persuasive action which makes the buyers to buy the products and services at
given price is called marketing.

Marketing management is a process of planning and executing the conception, pricing, promotion and
distribution of goods services and ideas to create exchanges with target groups that satisfy customers and
organizational objectives. Marketing management is a process involving analysis, planning
implementation and control that it covers goods, services and ideas that it rests on the notion of exchange
and the goal is to produce satisfaction for the parties involved.

MARKETING MIX


Marketing refers to the four P’s:-

 Product
 Promotion
 Pricing
 Place

Promotion

Promotion activity of the products produced by the TULSYAN NEC LTD is totally taken care by head
office of the company which is situated at Vasanthnagar, Bangalore.

Promotion of the products is looked after by the company’s marketing executives.

Pricing

Pricing is relying on the quality and quality ordered by the customers. When customer places bulk orders
for the products and services, company will quote the low price for the orders or vice-versa. All the
pricing quotation is fixed by the head office of TULSYAN NEC LTD. Only manufacturing process will
be done in the plant. The head office will receive the cost of each order placed by the customers. It will
then check the cost of the orders and then fix the price for the orders

Place

Place refers to the space of finding the targeted customers of the produced goods and services. Mainly
company will browse the customers via internet or through the directories, which contains information
about the customers.

MARKETING PROCESS

The marketing process followed at Tulsyan is

 Analyzing market opportunities
 Researching and selecting target markets and positioning the offer
 Developing marketing strategy and plans
 Planning marketing programs
 Organizing implementing and controlling the marketing plans


MARKETING PROCESS OF TULSYAN NEC LTD

SEARCHING CUSTOMERS VIA INTERNET

POSTING COMPANY PROFILE TO

CUSTOMERS

REPLY FROM CUSTOMER

BUILD RELATIONSHIP AND ENQUIRIES

FIX QUOATATIONS

PRICING QUOTATIONS


PLANNING MARKETING PROGRAMS

ORGANIZING IMPLEMENTING MARKETING EFFORTS

CUSTOMERS PROFILE

There are nearly 51 overseas customers and few domestic customers. some of the major
customers are as follows:-

Domestic customers

 ACC CEMENT
 RASHI GOLD
 COROMANDEL
 AMBUJA CEMENT
 BIRLA SUPER
 L & T CEMENT
 ULTRATECH CEMENT

JUMBO BAGS (FIBC)

 VEDANTA (Lanjigarh)
 INDIAN OIL
 ENCORE


Overseas customers
 SHAH& Co
 TRACO CABLE COMPANY LIMITED KEJRIWAL ELECTRONICS LIMITED
 P.L. GOYAL & SONS LIMITED
 INFO TRENDS
 CHETANA LAMINANATES PRIVATE LIMITED
 M.B.I.L LIMITED
 SHREE LAXMI PACKAGING
 ASHIRVAD IMPEX
 CHRIST EXPORT
 R.P.PLASTIC


HIERARCHY OF HUMAN RESOURCE DEPARTMENT

HOD/HR
manager

Executive Executive

Assistant House keeping Assistant
supervisor supervisor supervisor

House keeping
supervisor

Introduction:

Human resource is very important for the success of any organization. Human resource
management is the wealth of an organization, which can help in achieving its goals. Human
resource management is concerned with the human being in an organization. It reflects a new out
look, which views organization manpower as its resource and assets.

Meaning of Human resource management:-

Human resource management is that process of management which develops and manages the
human elements of enterprise. It is not only the management of skills but also the attitudes and
aspiration of people. When individuals come to work place, they come with not only technical
skills, knowledge, experience, but also with personal feelings, desires, motives, attitudes, values
etc.., So Human resource management means management of various aspects of Human
resource.


HRM is a management function that helps a manager to recruit, select, train and develop
members for an organization. It is mainly concerned with the people dimension in organization.

Tulsyan company has nearly 1640 employees (including contract labours) as compared to
previous year and the industrial relations remained cordial during the year. To meet the ongoing
challenges in the market place employees are trained continuously to upgrade both their
knowledge and skills.

CLASSIFICATION OF EMPLOYEES

 Permanent employees
 Casual employees
 Apprentice

FUNCTIONS OF THE HR DEPARTMENT

 Recruitment of candidates.
 Selection of best suited and right persons.
 Training and development of employees.
 Framing of rules.
 Creating a good working environment.
 Motivating the employees to work up to their potentials.
 Maximizing the performance of employees.
 Maintenance of records.
 Maintenance of industrial relations.
 Employee service and benefits
MAINTENANCE OF SERVICE REGISTER PERSONAL FILES

Tulsyan maintains a service register of each employee maintaining all the service records and the
below mentioned facts according to the HRD wing of the respective organization.


 Particulars of the employees.
 Date of joining.
 History of services.
 Pay scale/ increment /advances.
 Particulars of leave availed including leave encashment / maternity leave.
 Particulars of record of rewards, praise, punishment or censure including suspensions
 Place of position.
 Name / age of family members for provide medical benefits.
 Permanent residence address and present postal address.
 Details of training program undergone.
.

HR PRACTICES OF TULSYAN NEC LTD

 Provident fund and pension fund.
 Gratuity.
 Compensation for accidents.
 Shift allowances.
 Overtime allowances.
 Death relief fund.
 Provide loans through the banks.
 Leave encashment such as all permanent employees as on the date of settlement will be
given leave encashment in the form of following:-

 Earned leave.
 Casual leave.
 Maternity leave.
 Commuted or half day leave.


The primary responsibilities of the human resource department is

1. MANPOWER PLANNING
As an annual exercise, human resource department reviews the existing manpower plan for the
year from the entire department. On discussion and consultation with managing director, the
same shall be approved with changes if any.

2. RECRUITMENT AND SELECTION
Based on the manpower plan and recruitment that follow due to resignation, termination,
retirement, and transfer, concerned department heads shall give the manpower requisition along
with job description according to which human resource department arrange for Recruitment of
personnel. The sourcing of manpower will be through advertisements, consultations, walk-in,
and on-gate-advertisement or wanted lists on gates of the concerned departments of the
company.


3. INDUCTION AND PLACEMENT

The selected candidates will go through process of induction into the company’s system and
procedures. The induction and placement is given to the selected candidates by departmental
heads,

4. WAGES AND SALARY ADMINISTRATION

The wages and salary as prescribed by the company’s rule will be disposed as follows.

A. Confirmed staff : Last day of the month.

B. Unconfirmed staff : Fifth day of the next month.

C. Workman : Seventh day of the next month.

5. PERFORMANCE AND POTENTIAL EVALUATION

The performance of the entire trainee will be evaluated once in three months.

All other employee’s performance will be reviewed once in a year. On being found that their
performance and potential to perform is up to the expectation of the, management, employees
will be rewarded with normal increment, merit increment, lump sum payment and promotion.
Those employees whose performance is below the management expectation will be given
consulting in. In spite of such counseling, if the employees continue to perform below
expectation his awards or rewards will be differed, postponed withheld depending on the degree
of his poor performance.


6. PROMOTION, TRANSFER AND CAREER PLANNING
Promotion to higher posts to the employees is strictly and solely on merit basis and experience.
Transfer is affected on need basis and career planning in envisaged.

7. DISCIPLINE AND INDUSTRIAL RELATIONS
The company standing orders governs the employees and the industrial relations between the
management and workman are cordial and harmonious. To maintain this sort relationship
between the employees and employer or labors and superiors,

The company has conducted so many cultural programs, debate competition, issuing
questionnaire to the employees about the company’s working environment.

It follows strict supervision on the workers absenteeism as well as find out the reasons for the
same and also tries to solve the problems of absenteeism. The company has maintained the
absence rate of the workers very effectively by discovering optimum solution for the
absenteeism and has decreased the rate of absence from 5% to 3%.

TULSYAN Company is labor oriented and having a training and development programs at
minimum level. The company has only few employees at plant who are having technical skills,
and maximum number of labors having less or no technical background.

EMPLOYEE WELFARE

The welfare measures at TULSYAN NEC LTD as follows.

1. Uniform: All the staff and labor members are provided with proper uniforms and shoes.
The workmen are provided with two pairs of shirt and pants, two pairs of socks and a pair
of leather shoes. The purpose behind this is to maintain discipline and remove the
disparity with in the group of workers.


2. Canteen : In order to enable all its employees to have subsidiary food, management of
TULSYAN NEC LTD has provided a canteen facility which well furnished and provides
food by giving coupons to the workmen at RS 85 per week. There are separate canteens
for male and female workmen.

3. Soft drinks: The employees at staff level are allowed to enjoy soft drinks at wholesale
price which is deducted from their salaries.

4. Tea / coffee: The workmen and staff members are having the facility of getting tea and
coffee at subsidized rate, served twice a day to all its employees of the organization.

5. Loans to employees : All confirmed employees who have five years of completed
service, will be given loan which is repayable in equal installments. Workmen also have
the facility to procure the loan from company through Syndicate bank where company
has most of the transactions.

6. Salary advance: Employees on emergency are given salary advance which is fully
deducted in the next month salary. It boosts the employee moral and builds the loyalty
with the company.

7. Insurance: personnel department is responsible for ensuring the property of the
company towards fire policy, burglary, cash in transit and its employees towards
workman’s compensation policy, group personnel accidents, insurance med claim, and
fidelity insurance.

8. Provident fund : As usual in all the companies provident fund in given to the employees
by contributing half by the employer remaining is deducted from the salary or wages of
the workmen and staff members of the company.


9. ESI Benefits: The company provides employee state insurance to the all the employees
who worked more than 31 days in previous year.

10. Parking avenues: The company has provided well roofed parking slots to the
employees and workmen vehicles who usually come by bicycles and scooters.

Shift timings of the organization:-
Since it’s a production unit the company maintains 5 shifts out of them 3 are production
shifts and 2 are general shifts, the following are production shift timings
7:00am-3:00pm
3:00pm-11:00pm
11:00pm-7:00am

The following are the general shift timings
8:30am-5:00pm
10:00am-6:00pm


CHAPTER:4


SWOT ANALYSIS OF TULSYAN NEC LTD

 Strength
The company has very good quality of fabric as well as quality control system.
Continual improvement of their product by incorporating latest state of art
technology that is printing and lamination departments.
Strict compliance of quality ,timely delivery and quality management services.
The company is providing better packaging solution to requirements of customers
by quoting the pricing reasonably.
 Weakness
The company has poor advertising strategies to increase their sales.
The company is not ready to acquire bulk orders because of lack of investment.
The utmost weakness of this company is lack of marketing, they believe that they
are retaining most of their customers.
Attrition rate is more.
 Opportunities
New business alliance with clients abroad.
It has the potential to diversify in to various related business like sugar bags,
cement bags etc.
The company easily combat with their domestic competitors because of their
quality assurance and quality service.
Flexibility in usage of product makes the company more attractive.
 Threats
The entry of multi-national automation companies will have a greater impact on
the growth of the company.
Frequent power failure in the work place.
Changes in government policies


CHAPTER:5


 In Tulsyan nec ltd Finance and Marketing decisions are taken by the head office located
@Bangalore.

 It has been providing employment opportunity not only for technical people and also also for
non-technical people with minimum education qualification.

 It is providing good quality products and services to the society as well as to customers.

 It has well equipped plant to meet variation in the demand for instance TULSYAN NEC
LTD has VI extruders to make the raw materials conversion.

 It has provided well furnished canteen facilities to all his workers.

 It has well supported co-ordinate employees to meet objectives and goals of the company
also maintain industrial peace.

 It was founded that there are more number of unskilled labourers in the company.

 Training programmes for every new joiner is given. Online training (it is regularly given
when there is change in orders, complaints and so on.)
 Skilled employees are sent outside the organization for seminars.
 Training is given to employees as per the international quality standard.
 The company having good relationship with vendors of raw material and clients

 There is a lack of management application by the management employees.
 The company utilization of resources in a systematic way.
 Store department undertakes both storage of goods and purchases.
 The employees of the company are helpful and co-operative.
 Company using safety security policy.
 The company maintaining good environmental and quality standards with awards for
recognition.


Companies overall analysis
 Industry structure and developments:-

The companies products are TMT bars ,sponge billets and ingots in the steel division and
in synthetic division it is PP woven sacks, FIBC and woven fabrics. TMT bars are used in
the construction sector and the plastic products cater to the packaging industries such as
cement, fertilizers, food grains, sugar bag etc.
PP granules is used for manufacturing of plastic packaging products. This raw material is
available in abundance within the country and can be freely imported. Being in the
commodity market the company is continuously making efforts for reducing the cost of
production to sustain its margins.

 Quality:-
The company continues to strive to be an quality manufacturer in both steel and plastic
division. Both the divisions are covered under ISO certificate from government agencies
for their products.
Currently the company is looking towards covering their quality under various
international market standards namely Srilanka, UK, and middle east. The company is
getting rebars certificate from CMR Beligum. The company has Microsoft ERP solution
which will further add quality system.

Risks &Concern:-

Both the economy and industry are on growth trajectory increasing prices and availability
of key input and raw material , delay in infrastructure development , availability of
skilled manpower vitality in the global economy are the some of the major risks&
concern. All these have an impact on operations of the company. The company is
conscious of the risk involved and has put in place a mechanism for minimizing and
mitigation.

 Internal control system &their adequacy:-
The company has proper and adequate system of internal controls commensurate with its
size and nature of operations to provide reasonable assurance that’s all the assets are
safeguarded , transactions are authorized , recorded properly and applicable statutes the
code of conduct and corporate policies are duly complied with.

 Future Outlook:-

With various infrastructure facilities coming both in private & public sectors including
nuclear power and water across the country. The management has huge demand for its
products especially steel .The main raw material for the companies steel making is
scrap/sponge iron and power.


Chapter6


CONCLUSIONS:

My stay at TULSYAN NEC LTD was indeed very beneficial to me as it was more of learning
than just working. I got very good co-operation from all the employees at TULSYAN NEC LTD
Company during my organizational study.

The project study was successful in identifying the process and sub process existing in the
organization under study with reference to their inter functional implication and dependencies.
The project study has also brought into light the working methodology of some key functions of
finance, marketing, HRM. The organizational completeness is visible through the study. This
study as ascertained that the organization is functioning successfully because of micro and macro
level of management principles in practice. This study is also successful growing at with various
management techniques that are visible in the organization under study by which new principles
can be derived for continuous improvements, survival and growth to achieve the desired level of
excellence in the competitive scenario of industrial management.

The high performance of Tulsyan NEC Limited is the effort of the management and the worker
in the organization for its high growth and increased sales and with effective operations
management.

Every organization makes sure that its employees are satisfied and are happy working in the
organization. Every working person expects some benefits from its organization apart from the
basic salary paid to him for his work. An employee tends to be more satisfied from the additional
benefits that he obtains from the organization. Tulsyan NEC Limited is one of those
organizations who provides excellent benefits to its employees and makes sure that its employees
are satisfied and contended working in the organization.


CHAPTER:7


Balance Sheet
Mar '11 Mar '10 Mar '09
12mths 12 mths 12 mths

Total Share Capital 5.00 5.00 5.00
Equity Share Capital 5.00 5.00 5.00
Share Application Money 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00
Reserves 65.50 57.16 49.78
Revaluation Reserves 0.00 0.17 0.20
Networth 70.50 62.33 54.98
Secured Loans 243.15 203.08 162.24
Unsecured Loans 24.60 20.70 12.98
Total Debt 267.75 223.78 175.22
Total Liabilities 338.25 286.11 230.20

Mar '11 Mar '10 Mar '09

12mths 12 mths 12 mths

Gross Block 163.21 156.74 140.33
Less: Accum. Depreciation 57.87 49.79 42.17
Net Block 105.34 106.95 98.16
Capital Work in Progress 41.14 0.15 4.83
Investments 8.79 7.74 1.12
Inventories 126.94 97.47 64.36
Sundry Debtors 135.47 136.87 78.64
Cash and Bank Balance 20.60 0.39 0.33
Total Current Assets 283.01 234.73 143.33
Loans and Advances 90.39 63.22 75.56
Fixed Deposits 0.00 18.34 13.74
Total CA, Loans & Advances 373.40 316.29 232.63
Deffered Credit 0.00 0.00 0.00
Current Liabilities 169.24 125.77 91.00
Net Current Assets 182.56 171.26 126.09
Total Assets 338.25 286.10 230.20


Profit & Loss
account of ------------------ in Rs. Cr. -------------------

Tulsyan NEC
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Sales Turnover 843.11 634.20 699.70 571.01 431.57
Excise Duty 62.92 41.25 68.94 38.89 1.37
Net Sales 780.19 592.95 630.76 532.12 430.20
Other Income 0.51 0.88 -5.03 1.27 1.45
Stock Adjustments 13.19 37.09 20.40 -14.04 -10.02
Total Income 793.89 630.92 646.13 519.35 421.63
Expenditure
Raw Materials 627.42 499.01 520.15 404.19 328.31
Power & Fuel Cost 54.17 42.62 36.91 38.87 38.80
Employee Cost 22.11 18.99 16.42 14.21 11.79
Other Manufacturing Expenses 3.72 3.41 5.73 7.02 7.30
Selling and Admin Expenses 0.00 7.34 7.02 7.36 6.59
Miscellaneous Expenses 36.53 6.71 7.28 6.06 4.22
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenses 743.95 578.08 593.51 477.71 397.01
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12mnths 12mnths 12mnths 12mnths 12mnths

Operating Profit 49.43 51.96 57.65 40.37 23.17
PBDIT 49.94 52.84 52.62 41.64 24.62
Interest 27.55 31.10 30.51 15.14 11.73
PBDT 22.39 21.74 22.11 26.50 12.89
Depreciation 8.58 8.13 7.25 6.27 4.01
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 13.81 13.61 14.86 20.23 8.88
Extra-ordinary items 0.00 0.00 0.00 0.00 0.00
PBT (Post Extra-ord Items) 13.81 13.61 14.86 20.23 8.88
Tax 4.46 5.10 5.35 6.49 2.78
Reported Net Profit 9.34 8.49 9.51 13.74 6.11
Total Value Addition 116.54 79.08 73.38 73.52 68.69
Preference Dividend 0.00 0.00 0.00 0.00 0.00


Equity Dividend 1.00 1.00 1.00 1.00 0.75
Corporate Dividend Tax 0.14 0.11 0.00 0.17 0.11
Per share data (annualised)
Shares in issue (lakhs) 50.00 50.00 50.00 50.00 50.00
Earning Per Share (Rs) 18.69 16.99 19.02 27.48 12.22
Equity Dividend (%) 20.00 20.00 20.00 20.00 15.00
Book Value (Rs) 141.00 124.32 109.56 92.55 67.41


Chapter8

Final report of organisation study 222 (1)

Final report of organisation study 222 (1)

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