()A Report Submitted in Partial Fulfillment of the requirements for the degree of Master of

Business Administration in Dr.M.G.R University

MASTER OF BUSINESS ADMINISTRATION
INTERNSHIP REPORT
By
DINESH.C
(Enrollment No:235012101114)

FACULTY OF MANAGEMENT STUDIES

Dr. M.G.R.
Educational and Research Institute
(Deemed to be university)
Maduravoyal, Chennai-600 095
(An ISO 9001-2008 certified Institution)
University with Special Autonomy Status
(A Report Submitted in Partial Fulfillment of the requirements for the degree of Master of
Business Administration in Dr.M.G.R University)
MASTER OF BUSINESS ADMINISTRATION
INTERNSHIP REPORT
By
DINESH.C
(Enrollment No:235012101114)

Under the guidance of

M.R. BARAKATHULLAH
FACULTY OF MANAGEMENT STUDIES
Dr. M.G.R.
Educational and Research Institute
(Deemed to be university)
Maduravoyal, Chennai-600 095
(An ISO 9001-2008 certified Institution)
University with Special Autonomy Status
 MASTER OF BUSINESS ADMINISTRATION
FACULTY OF MANAGEMENT STUDIES
Dr. M.G.R.
DECLARATION

I hereby declare that A Summer Training Project at J.K.Fenner PVT LTD,

submitted for award of the degree of Masters in Business Administration is my
original work and no part of this report has been submitted fully of partially for
other recognition earlier.

DATE: Signature of the

student
PLACE:
 ACKNOWLEDEMENT

To acknowledge here, all those who have been a helping hand in completing this project,
shall be an endeavor in itself

I extremely thankful to our Chancellor Thiru A.C.SHANMUGAM,B.A., B.L., our President

Er. A.C.S. ARUN KUMAR, B.E. I express my sincere thanks to our Secretary Thiru A.
RAVIKUMAR and our Vice Chancellor DR.S.GEETHALAKSHMI, I would like to take the
opportunity to express my profound gratitude to Dr. G BRINDHA, Professor & head, and my
project guide, Faculty of Management Studies, for her kind permission to undergo project
work successfully.

I thank xxxxxxx guiding me to execute my final year project. I also thank all faculties and
batch mates in Faculty of Management Studies, for their support and guidance throughout the
course of final year project.

I thank Mr. BARAKATHULLAH for guiding and supporting throughout my project

I owe my wholehearted thanks and appreciation to entire staff of the company for their
cooperation and assistance during the project.
 CONTENTS

CHAPTER PARTICULARS PAGE

NUMBER
INTRODUCTION
1.1 ABOUT INTERNSHIP
1.2 IMPORTANCE OF INTERNSHIP
1. 6
1.3 SCOPE OF INTERNSHIP
1.4 OBJECTIVES OF INTERNSHIP
INDUSTRY PROFILE
2. 2.1 HISTORY AND GROWTH OF 10
RUBBER INDUSTRY

3.1 COMPANY PROFILE

3. 3.2 OBJECTIVES 13-16

FUNCTIONAL DEPARTMENTS
4.1 HUMAN RESOURCE
DEPARTMENT
4.2 FINANCE DEPARTMENT
4. 17-51
4.3 PRODUCTION DEPARTMENT
4.4 SALES DEPARTMENT
4.5 PURCHASE DEPARTMENT
TRAINING EXPOSURE
5. 5.1 SWOT ANALYSIS 53-57

6. CONCLUSION 59
 Dr. M.G.R.
Educational and Research Institute (Deemed to be university)
Maduravoyal, Chennai-600 095
(An ISO 9001-2008 certified Institution)

FACULTY OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the bonafide work of Mr. DINESH C
Reg. No 235012101114 who carried out the project entitled “A STUDY ON
ACCOUNTS PAYABLES” under our supervision from 19.12.2018 to 04.03.2019

Internal Guide Head of the Department

Submitted for Viva Voce Examination held on _________

1.INTRODUCTION
CHAPTER-1

INTRODUCTION

1.1 ABOUT INTERNSHIP

An internship is a method of on-the-job training for professional careers, Internships for

professional careers are similar to apprenticeships for trade and vocational jobs. Although
interns are typically college or university students, Internships may be paid or unpaid, and are
usually understood to be temporary positions. Generally, an internship consists of an
exchange of services for experience between the student and an organization. Students can
also use an internship to determine if they have an interest in a particular career, create a
network of contacts, or gain school credit. Some interns find permanent, paid employment
with the organizations with which they interned. This can be a significant benefit to the
employer as experienced interns often need little or no training when they begin regular
employment. Unlike a trainee program, however, employment at the completion of an
internship is not guaranteed. Internships exist in a wide variety of industries and settings. A
typical internship lasts 6-12 weeks, but can be shorter or longer, depending on the
organization involved.

1.2 IMPORTANCE OF INTERNSHIP

Provides Experience & Knowledge

Classroom studies are confined only to books and theoretical learning. Application of these
theories and lectures delivered in classrooms differ a little from the set format. Through
internship, we get not only get a first-hand experience of these theories, but also learn the
applications of these theories in real challenges. Also, the company exposure allows us to
enhance their knowledge and contribute it to the company in their specialized fields.

Improves Skills

Several skills and tasks are necessary to accomplish a job effectively and efficiently. These
skills are imparted to us during this tenure as an intern. It exposes us to skills, such as oral
and written
communication, presentation, leadership, planning, time, and project management. No matter
how simple or difficult the task is, we are taught to take up the challenge and polish their
skills to prove ourselves to the employers.

Boosts Self-Confidence

Doing an internship is a great learning experience in itself. The entire journey of internship
allows us to identify the strengths and weaknesses, and use both of them to the best
advantage of our job and company. This real-life experience allows us to judge ourselves to
where we stand and identify the abilities of completing the given tasks. All in all, undergoing
an intensive internship program boosts the self- confidence and motivates towards facing big
opportunities in future.

New Career Opportunities

Internship is the first ladder to success. Doing an internship in a specialized field helps to
build up a good network. When a student enters a company, he is not regarded as an intern
(despite being one), but as an employee who will give his best to the company. Further, if the
intern is successful in proving himself worthy for the company, he may just land up getting a
permanent position in the same company after completing the internship program.

Real Corporate Feel

Another major advantage of doing an internship is working in the real corporate environment
to experience the workplace atmosphere as great opportunities to utilize the time and
knowledge to gain understanding and experience and make the most out of it in terms of
converting it into a prospective career.

1.3 SCOPE OF INTERNSHIP

• Provides an opportunity to learn about career interests.

• Provides exposure to the working world.
• Provides opportunity to utilize the talents and skills
• Helps to have an internal change based on the requirement of the organization
 • Equips with the essential skills and provides training and experience in
work.
• Provides an opportunity to get employed.

1.4 OBJECTIVES OF INTERNSHIP

• To test the interest in a particular career before permanent commitments

are made.
• To learn beyond the walls of the traditional classroom.
• To learn more about public relations by examining it from a practitioner's
perspective.
• To develop skills in the application of theory to practical work situations.
• To aid students in adjusting from college to full-time employment.
• To develop attitudes conducive to effective interpersonal relationships.
• To increase a student's sense of responsibility.
• To acquire good work habits.
• To develop employment records/references that will enhance employment
opportunities.
• To acquire in-depth knowledge of the formal functional activities of a
participating organization.
• To understand informal organizational interrelationships.
• To engage in experiential learning while developing knowledge, skills
and awareness of the complexity of issues in the organization.
2.INDUSTRY PROFILE
CHAPTER-2
INDUSTRY PROFILE
2.1 HISTORY AND GROWTH OF RUBBER INDUSTRY

The World Production of rubber was considered to be very unstable during the
last few years. Comparatively, India's production of rubber is consistent at the
rate of 6% per annum. The Indian rubber industry has been growing in strength
and important. This is the result of India's burgeoning role in the global
economy, India is the world's largest producers and third largest consumer of
natural rubber. Moreover, India is also one of the fastest growing economies
globally. These factors along with high growth of automobiles production and
the presence of large and medium industries have led to the growth of rubber
industry in India.
• India is the third largest producers of rubber in the world.
• It is the fourth largest consumer of natural rubber.
• It is the fifth largest consumer of natural rubber and synthetic rubber
together in the world.
• India is the world's largest manufacturer of reclaim rubber.
• India and china are the only two countries in the world which have the
capacity to consumer the entire indigenous production of natural rubber.
RUBBER CONSUMPTION IN INDIA
AUTOMOBILE TYRE SECTOR 50%

BICYLE TYRES AND TUBES 15%

FOOT WEAR 12%

BELTS AND SHOES 6%

CAMEL BACK AND LATEX PRODUCTS 7%

OTHER PRODUCTS 10%

CHARACTERISTICS OF INDIAN RUBBER INDUSTRY
• The following are the special characteristics of the rubber industry in the
country, which make India a little different from many of the other natural
rubber producing countries:
• India is a major producer and consumer of natural rubber.
• The rubber products manufacturing industry in India had been mostly
inward oriented, catering to the domestic market.
• In recent years India has entered the global market exporting both raw
natural rubber as well as rubber products.
• With its large population base, India is emerging as a large market for
rubber products and with the opening up of the economy, import of
rubber products has also been increasing in recent years.
• The rubber product mix in India is based mostly on dry forms of rubber,
dictated by the requirements of the domestic market.
• The natural rubber/synthetic rubber consumption ratio in the country is
presently 75:25.
• While the Indian tyre companies have been performing well,
multinational tyre manufacturers are establishing production facilities in
India.
• Manufacture of non-tyre products particularly high-value technical goods
needs further investments

2.2 PRESENT SCENARIO OF INDIAN RUBBER MARKET

India's rubber production varies between 6 and 7 lakh tons annually which
amounts to RS.3000 crores. Seventy percentage of the total rubber production in
Indian is in the form of ribbed smoked sheet (RSS). This is also imported by
India accounting for 45% of the total import of rubber. The Indian rubber
industry has a turnover of RS.12000 Crores. Most of the rubber production is
consumed by the tyre industry which is almost 52% of the total production of
India. Among the states, Kerala is the leading consumer of rubber, followed by
Punjab and Maharashtra. The exports of Indian natural rubber have increased
tremendously over the years and have reached 76000 tons in 2003-2004.
Though, India is one of the leading producers of rubber but it still imports
rubber from other countries. At present, India is importing around 50000 tons of
rubber annually.

FACTORS CONTRIBUTING TO THE GROWTH

Like most of the producing countries, natural rubber production in India was
solely export oriented during the first quarter of the 20th century. However,
sustained growth of the rubber product manufacturing industry was evident
since the mid 1930s. Historically, the commercial impetus for this growth
revolved around three inter-related developments: (1) the implementation of the
International Rubber Regulation Agreement (IRRA) in 1934 and the consequent
domestic availability of NR at a lower price in India, (2) the entry of foreign
companies in rubber product manufacture to capitalize the advantages arising
from cheaper raw material and labour and a growing domestic market and (3)
government patronage to the industry in the backdrop of the increased industrial
requirements during the inter-war years
and the second world war period. The post-war period witnessed a steady
expansion of the industry. But the bulk of the consumption of rubber was
accounted for by a few large units. But small scale units also could survive
because of the relative profitability of rubber product manufacture and the
extent of protection from external competition.
Government patronage to the industry resulted in liberalized import of rubber
and other raw materials and protection from imports of rubber products. The net
result was the graduation of India from an exporter of raw natural rubber to a
net importer of the rubber and an exporter of finished rubber goods, although in
a limited manner, by the late 1940s.
At present, there are over 4300 manufacturing units, including 58 tyre factories,
turning out products worth US$ 7.7 billion, which is about 1.7% of the total
industrial output of the country. The total employment generation by the rubber
product manufacturing industry is 465,000. The natural rubber/ synthetic rubber
consumption ratio is 75:25, while globally the ratio stands at 44:56. The per
capita consumption of rubber remaining at 1.0 kg, the market for 2rubber
products in India, with its large population, is likely to grow significantly in the
years ahead.

3.COMPANY PROFILE
CHAPTER-3
OVERVIEW OF THE ORGANIZATION
3.1 COMPANY PROFILE
ABOUT THE COMPANY
Fenner (India) Limited is the largest manufacturer of industrial and automotive
V-belts, Oil seals and power transmission accessories in India with a large sales
and distribution network across the country and a strong brand image, Fenner
(India) Limited is undoubtedly the market leader in India.
Fenner (India) Ltd emphasis on quality and customer's satisfaction has earned
respect and endorsement from major OEMs. The Company is a pioneer and has
been a market leader both in terms of new product development and market
research. Fenner (India) Ltd has regularly introduced state of the art latest
products both for domestic and international markets. Today eight out of ten
automobiles in India have at least one Fenner belt or oil seal in it.
Apart from being the domestic market leader, Fenner (India) Ltd is also one of
the big exporters of V-belts and Auto belts in the country with product being
exported to over 40 countries including north and South America, Europe,
Australia and South Africa.

ORIGIN AND GROWTH

In 1929.J.K Fenner (India) Ltd was established in Calcutta as a trading company
for selling of products imported from Fenner, UK. Fenner (India) ltd, originally
incorporated as Fenner, cockill Limited on 15m July 1955, was prompted by J.H
Fenner @co. ltd., and Madura Mills company limited with A&F Harvely Ltd as
their Managing agents.
The company commenced production in 1955 with fat transmission Belting and
later introduced Industrial and Auto V-Belts, conveyor belting and oil seals.
The company achieved substantial expansion in the year 1973, and the same
year J.K.Fenner &co., (India) Itd., Calcutta a trading company of V-Belts and
power transmission belts was amalgamated with the company. In 1975, the
company name was changed to Fenner (India) Ltd., and by 1979 the foreign
equality holding was reduced to 35%.
In 1983, the company established material handling division for carrying on the
business of designing and supplying of baggage handling and industrial material
handling system.
The company had been making good profits till the early 80's from 1980,
competition in the 'V-Belt area. increased substantially. Fenner has identified the
need to create and accelerating organization that changes continually and
skillfully Always in alignment with our vision "where we want to be by landing
ways to keep changing and improving.
In 1987, the J.K.Group acquired share held by Madura coats limited and took
management control of the company. The holding of J.K.Group and associates
is 39.87% and that of Fenner international ltd is 30.07%. As a measure of
diversification the company took over a 12,840 spindles cotton yarn spindles
spinning unit near karur in Tamilnadu.
The strengthened out derive through nightly focused action towards cost
reduction, rationalization of work force and productivity improvement, the
company turned around in 1988. In 1992 the company entered in the field of
textile. In 1995, it took over another textile near Salem having 21,872 spindles.
The capabilities were further expanded to 36,636 spindles
The company ventured into wind mill power generated in 1994, and installed
wind electronic generatorsin kanyakumari district and currently, the company
are having 27 winds electrical, these wind mills have
helped in supply of electricity of two companies, manufacturing operations of
polymer and textile business at Tamilnadu at competitive cost.
Currently the company is a leader in almost all its product areas. In 'V-Belts it
has the highest market share selling more belts. Competitors put together in the
last few years with a major thrust of research and development the company has
been able to launch more more innovative products.

3.2 OBJECTIVES
• Fenner (India) Ltd sustain by the belief that perfection can be improved
with proactive internal culture and by introducing new ideas.
• It has consistency delivered front line solution standard of productivity of
quality, the company has achieved big presence in the global market
place, ensuring reliable brand value.
• Improving performance in the development of product and reduce lead
time.
• Achieve zero customer complaint status.
• Constantly upgrade and continuously improve operating system to
enhance both internal and external customers

VISION
To sustain and enhance leadership status and enlarge business scope to
worldwide markets, through a cohesive and committed management team that
diligently plans, deploys the resources at hand towards the stated objective.

MISSION
Emphasize profitable growth by sustained delivery of superior
products/services/solutions to worldwide customers.
3.3 ORGANIZATION STRUCTURE

MANAGING DIRECTOR

GENERAL MANAGER

HEAD OF THE HEAD OF THE

DEPARTMENT HR DEPARTMENT

DEPUTY
MANAGER

ASSISTANT
MANAGER

SENIOR OFFICER

ASSISTANT
OFFICER

JUNIOR OFFICER
PRODUCTS
• Timing Belts.
• Oil Seals.
• V-Belts.
• Poly V-Belts.
• Power Flex Belts

BRANDS IN INDIA

• Power Flex
• Eco drive
• Power Train
• Pioneer
• Fenner Multi-Poll

INTERNATIONAL BRANDS

• TOP DRIVE
• TOP DRIVE ENDURANCE PLUS
• TOP DRIVE COG POWER.

CUSTOMERS

S.NO PRODUCTS DOMESTIC INTERNATIONAL CUSTOMERS

COUSTEMERS
1. AUTOMOTIVE TATA, HYUNDAI, TOYOTO, WYCO
PRODUCTS TVS,
HERO, HONDA,
BAJAJ,
ASHOK LEYLAND
2. INDUSTRIAL TATA STEEL, WYCO(U.K), CHAIRVALI (ITALY),
PRODUCTS ROELOINTOS (SPAIN) MOTION
SAINT GOBAIN
INDUSTRIES(AUSTRAILA)
4. FUNCTIONAL DEPARTMENTS
CHAPTER-4

FUNCTIONAL DEPARTMENTS

Fenner (India) Limited have various functional departments as follows

• Finance department
• Human Resource
• Operation/Production
• Purchase
• Rubber Mill
• Engineering
• Power Flex
• Poly-V
• Export-V
• FP stores (Finished product stores)
• Timing Belts
• Accounts
• IT (Information Technology)
• Sales & Distribution
• R&D (Research and Development)
• Quality Control Department
4.1 HUMAN RESOURCE DEPARTMENT
HR POLICY:

Fenner (India) Ltd feels that our people are the value adding differentiators and primary
source of our competitiveness.
The company strives to be a preferred place of work, where people are inspired to be the best
they can.
Fenner (India) Ltd able to attract the best talent, ensures n transparency, fairness and equality
in all its dealings with employees.
Fenner (India) Ltd ensures work life balance by team work, nurturing talent and enhancing
leadership capability in employees.
EMPLOYEE DETAILS
NO.OF EMPLOYEE TYPES OF EMPLOYEE
PERMANENT 1678
VARISU 237
TRAINEE 459
CASUAL 350

Shift Allowance
There are 3 shifts in this company

• 1 shift-8.am to 4.pm
• 2nd shift-4.pm to 12.pm
• 3t shift-12.pm to 8.am
Office Timing
The working hour for the office and administration staff is from 8.am to 5.pm.

Leave Allocation
The annual sick allowed for permanent employee is two days and privilege leave is
formulated once in a year.

Permission
Permission allowed minimum 30 minutes for each employer. If two times per month
which minimum and maximum of one hour Incentive allowed to who are not taken leave and
permission.

STRUCTURE OF HR DEPARTMENT

Senior Manager
↓
Deputy General Manager
↓
Assistant Manager
↓
Senior Officer
↓
Officer
↓
Assistant
FUNCTIONS OF HR DEPARTMENT

Recruitment and Selection

Payroll Analysis
Grievance Handling
Training and Development
Performance Analysis

Health and Safety Control

RECRUITMENT
SOURCES OF RECRUITMENT

Main sources include

• Internal reference.
• Newspaper advertisement.
• Applications also obtained through NAUKRI.Com

RECRUITMENT AND SELECTION PROCESS:

The company is receiving many applications from outsiders daily and also from existing
employee referrals and the company is selecting the employee based on some qualifications
according to the job requirements. The following process of recruitment and selection
followed in Fenner India limited.
 HRP

RECEIVING AND SCREENING OF APPLICATION

SHORT LISTING THE CANDIDATES

INTERVIEW

SELECTION

MEDICAL EXAMINATION

PLACEMENT

ORIENTATION

ALLOCATION OF DEPARTMENT

NDUCTION
Induction is also called orientation is designed to provide a new employee with the
information he or she needs to function comfortably and effectively in the organization. It is a
planned introduction of new hires to their hobs, their peers and the company.

Typically, orientation conveys three types of information.

• General information about the daily work routine:
• A review of the firm's history, founding fathers, objectives, operations and products or
services, as well as how the employee's job contributes to the organization's needs.
• A detailed presentation, in a brochure of the organization's policies, work rules and
employee benefits.

TRAINING AND DEVELOPMENT

The company provides the training to the new employee's. They provide training to the
existing employee's regarding the new method and technologies. The training period to the
new employee's is maximum of two months.
dentifying the business goals.
Preparation of annual training budget.
Specification recommendation by head of the department.
Training need identification.
Preparation of training program.
Training cost analysis.

Training and development program

Fenner (India) Ltd believes that there is no end to learning Training and development
programs are ongoing process. All management staff are exposed to different training
programs both technical and staff development.
Fenner (India) Ltd have designed programs to cover their entire workforce in batches to lead
them to involve in the growth and development of the organization.
Managers who are identified for senior position are sent to management institutes like ASCI,
IIM AND training establishment to equip themselves with the latest techniques in
modernmanagement concepts and practices.
Training Methodology

1. Basics of training need identification:

• Attitude.
• Skill.
• ◊ Knowledge.

2. Need based training to meet the present and future challenges

• Behavioral.
• ◊ Technical.
3. Find out the effectiveness for continuous improvement.
4. Re-Assessment of employees.

PAYROLL
In Fenner (India) Ltd, HR looks after the functions of payroll. These functions included
preparation of the salary based on the attendance of the employees, which is given by the
time office. The functions of time
office is noticing the time in and time out of the employees by punching the hole in the
attendance card Closing day of the attendance in the time office is 20h of every month and
remaining 10 days the HR department will assume that all the employees were worked except
on Sundays.

FRINGE BENEFITS

The fringe benefits provided in Fenner (India) Ltd are classified as follows
Medical Facilities
Educational Facilities

MEDICAL FACILITIES

For workers there are two health care centers. They are provided free medical facility for
workers, spouse and children. But the children should not be more than 22 years.
For management employees can claim half of the amount, which they have spent for their
treatment by providing medical bill to the top management.

EDUCATIONAL FACILITIES
Fenner (India) Ltd had a tie up with Tamilnadu Polytechnic College. Every year they are
providing 3 DME seats and 4 polymer technology to the employee's children and also further
allowances are provided to them.

MOTIVATIONAL FACTOR
• Work experience awards
• 25 Years Award
• 35 Years Award
• 40 Years Award
• No Absenteeism Awards
• Best suggestion or Idea Awards
 • Publishing Photos of Newly Marriage couple in the company Magazine
• On Birthday, Wishing the Employee with Greeting & Chocolates
• Yearly bonuses
• Best performer is motivated with giving gift voucher or cash prize.

PERFORMANCE APPRAISAL SYSTEM

• It is transparent system Initially goals are set for the president of the company.
• Once in six months the activities are going on in order to find out how they
performing to achieve their target.
• If their performance is not up to the mark then the reason is found out and they are
trained to complete the allotted.
• At the end of the year annual appraisal is done and based on the individual
performance weight age is given in the next year's increment.

CRITERIA FOR PERFORMANCE MANAGEMENT AWARD

• Employee involvement
• Quality of man resources
• Employee satisfaction and motivation
• Industrial relation
• Talent management
• Innovative or unique HR practices
• Quarterly people management award review
• Enhancing external HR brand value

HEALTH, SAFETY AND WELFARE MEASURES

The need for providing welfare activities for the workers broadly received attention in us
country in the early stages of industrialization. Employers were not generally to accept the
financial burden on account of welfare activities. The Government intervenes using its
persuasive and Legislative powers. The Factories Act 1948, provided for some amenities in
respect if general as "such services arrangement for travel to and from place of work and for
the accommodation of workers employed at a distance from their houses, and such other
services and facilities as contribute to improve the conditions under which workers are
employed. Welfare work is differing from social work.

THE ENTIRE RANGE OF WELFARE ACTIVITIES IS DIVIDED INTO TWO GROUPS

1. Welfare and amenities within the predicts of the establishment via

• Rest room and shelters for taking rest.

• Drinking water
• Canteens
• Medical aid
• Uniforms and protective clothing
• The shift allowance

2. Welfare outside the establishment

• Housing facilities
• Education
• Recreation facilities including sports, cultural library and reading room activities.
• Medical facilities
• Holiday homes and leave travel facilities
• Workers co-operative including consumer stores
• Transport from the place of work
• Maternity benefits and enevolent funds

SAFETY
Safety is an important management responsibility in industry. To ensure the safety and health
of workers in a business enterprise, managers establish a focus on safety that can include
elements such as:
 • Management leadership commitment
• Employee engagement
• Accountability
• Safety programs, policies and plans.
• Safety processes, procedures, and practices.
• Safety programs audits,
• Safety goals and objectives
• Safety inspection for workplace hazards
• Safety training and metrics
• Hazard identification and control
• Safety committees to promote employee involvement

SAFETY COMMITTEE
It consists of representatives from management and the workmen.
• Management Representative-3
• Workmen's Representative-3
• Company Doctor-1

ACTIVITIES OF THE COMMITTEE

• Evaluate the monthly accident.
• Analysis of the accident and preventive measure.
• Check and improve the lighting and ventilation.

OTHER ACTIVITIES/CO ORDINATION OF SAFETY OFFICER

• Accident report to inspector of factories.
• To ensure reduction of health problem through usage of safety appliances, exhaust
machines periodical medical checkup.
• Testing pressure vessels.
 • Testing hoists, good lift etc.

GRIEVANCE HANDLING PROCEDURE

If any grievances occur, the HR manager along with the respective HOD carefully listens to
the problem of an individual and tries to solve it. They mostly adopt WIN-WIN policy so that
grievance will not turned as a dispute. If the problem was not solved then the individual will
take the problem to the higher authority, if not the problem will be taken to the labour office
then DCL, JCL and finally it will be taken to the labour court.

RELATION WITH TRADE UNIONS

The company's relationship with trade union is 100% cordial. There is only union in the
company. The union existing in the company is an internal union and there is political
inference in the union.

Other Major Activities of HR Department

1) Integrated Management System

a) Coordination with all departments,
b) System up gradation.
c) Document preparation.
d) Auditing arrangement

2) Medical Meeting
a) Once in a quarter
b) Health related issues.
c) In presence of doctor, head of the department and safety officer.

3) Reliving formalities
a) Issuing relieving order
 • b) Service certificate
• c) Final settlement

4) Counseling through internal and external counselor.

5) Travel rules.
6) Medical scheme.
7) Employee referral scheme.
8) Talent management.

CORPORATE SOCIAL RESPONSIBILITY

• Eye camps.
• Assistance to hospitals.
• Surplus food from canteen to an orphanage.
• Upkeep and maintenance of social forestry in front of factory.
• Environmental friendly effluent treatment plant.
• Donations to build schools, orphanages and other organizations.
• Activation of "Fenner Auto-signalling system and water foundation at traffic junction
near kalavasal.
• Adult literacy project.
• 8 centres.
• 240 beneficions.
4.2 FINANCE DEPARTMENT

OBJECTIVE

Maintenance and Reporting of accounts related functions according to statutory regulations

and advice on reduction of expenses.

DEPARTMENT CHART

FINANCIAL
MANAGEMENT

CASH
TAX COSTING
MANAGEMENT

FUNCTIONS
• Preparation of budget and all matters relating to financial requirements
• Management of funds
• Liaison with bank
• Inventory
• Cost control concept
• Tax calculation

ACCOUNTS MAINTENANCE
Computerized records are maintained by company and also integrated with each other
department inside the organization, the accounts are maintained using the packages in Excel
and Tally.
BUDGETING

Based on the past 3-year trend, budget is prepared, cost incurred for past 3 years is calculated,
and sales are calculated. After that, actual is compared with the budgeted and deviation is
identified and report is sent to the U.K head office.

INVESTMENT POLICY

In Fenner (India) Ltd, investment is made in fixed deposit-short term deposit,

FIXED DEPOSIT SCHEME AT FENNER

The fixed deposit programme of Fenner (India) Ltd is open for renewal and fresh investment.
The one-year interest rate is quite attractive. The company's fundamentals have also remained
strong. An investment up to one year can be considered. Beyond that, however, it can be
avoided as the incremental returns are not large enough to warrant a long exposure.

Scheme and features

Fenner (India) Ltd offers the non-cumulative fixed deposit scheme only. The rates are
compounded at quarterly rests and paid at quarterly intervals. The interest rates are 7.50 per
cent for one year, 7,75 per cent for two years and 8 per cent for three years. Since the interest
is compounded at quarterly rests, the effective yields for the same are 7.71 per cent for one
year, 8.3 per cent for two years and 8.94 per cent for three years. The minimum deposit for
the scheme is Rs 20,000 and, thereafter, in multiples of Rs 5,000,
NORMS OF FENNER'S FIXED DEPOSIT

According to the norms of RBI, FENNER (India) Limited is providing 35% (10% to
shareholder and 25% to the company). The fixed deposit is calculated by share capital,
reserves and surplus of the firm. The debentures are detected from the reserves and surplus
before interest is calculated. It is calculated once in a year. Interest warrants are encashable at
par at specified branches of IDBI Bank. The minimum amount of deposit is Rs.5000. The
additional amount are payable in multiples of Rs. 1000. The interest rate is calculated by
Fenner (India) Ltd is given in below tabular column:

TERM DEPOSIT (NON-CUMULATIVE)

PERIOD RATE OF INTEREST/ANNUM

1 YEAR 9.00%

2 YEAR 9.23%

3 YEAR 9.50%

The interest is calculated once in a quarter, that is once in four months and payable quarterly
on 31 March, 30m June, 306 September, 31 December and on maturity.

Reasons for not using Cumulative Term Deposits in Fenner (India) Ltd

• To minimize the total outflow at the time of Repayment

• Mode of calculation will be simple
• Liabilities are not accumulated
• Easy handling of deposits
 BOARD RESOLUTION TO ACCEPT DEPOSIT

TEXT OF ADVERTISMENT APPROVED BY THE BOARD

Filing the text advertisement to R.O.C

Release of advertisement in English daily and vernacular daily

Issue of application.

Acceptance of deposits

Issue of FD receipts.

Payment of receipts

Repayment/Renewal/Premature withdrawal

Maintenance of statutory registers

Deduction of tax at source

Filing of TDS Return

Filing of Return of Deposits

OTHER HIGHLIGHTS OF THE SCHEMES

➢ Payment should be made by means of an A/C Payee Cheque/Bank Draft to any of the
Offices of the Company or offices of the authorized Agents or Brokers.

➢ Outstation depositors may deduct the demand draft charges while remitting their
deposit amount by way of demand draft payable at Madurai or at places where
Company's offices are situated.

APPLICATIONS

Deposits are acceptable on Application Forms prescribed by the Company containing

detailed terms and conditions available at the office of the company mentioned herein and
with the following authorized Agents:

1) M/s. Bajaj Capital Limited.

2) M/s. Eastern Financers Limited.
3) M/s. Ganesh Financial Consultancy services.
4) M/s Integrated Enterprises (India) Limited.
5) Mis J.M Financial Services Pvt Limited.
6) Karvy Stock Broking Limited.
7) Bluechip Corporate Investment Centre Limited.
8) Om Spectrum Financial Consultants Pvt limited.
9) India Infoline.Com Distribution Co Limited.
10) Cholamandalam Distribution Co Limited.
11) Upendra Dalal & co.
12) Enam Securities Pvt Ltd.
RULES FOR APPLICATION

✓ The cheque or demand draft should be payable to FENNER (India) Ltd., and crossed
"Account Payee". Outstation applicants may remit the Deposit either by way of
Cheque or Demand Draft at Madurai or at the Company's aforesaid Offices. Those
who remit the Demand Draft may deduct DD charges while remitting their deposit.

✓ No deposit will be accepted from Indian Companies, non-resident or foreign nationals

and OCBS

✓ If the deposit is in the name of Minor, the Guardian must attest or sign the Application
Form. The interest and principal would be payable to the Guardian whose signature is
given in Application Form.

RENEWAL/REPAYMENT OF DEPOSIT

✓ The Deposit shall be payable only on or after the due date indicated on the Fixed
Deposit Receipt. The payment of principal and interest will be made by warrants
payable at par at branches of IDBI Bank.

✓ No further intimation or notice regarding maturity of Deposit will be given to the

depositor.

✓ The Deposit Receipt in original duly discharged on requisite revenue stamp by the
first named depositor should be sent only to the Registered Office of the Company at
Madurai at least 15days in advance of the date of maturity for repayment/renewal of
the deposit amount. Renewal will be considered on the fresh application form.

✓ The Company may at its sole discretion permit the depositor to withdraw the deposit
amount prior to maturity. For the purpose of such premature payments, the interest
will be allowed at the rate applicable subject to deductions in terms of the provisions
of the Companies (Acceptance of Deposits) Rules 1975, as amended from time to
time.
TAX RATES

The CENVAT is around 12%. Input tax credit shall be allowed for the purchase of goods
made within the state from a registered dealer for the purpose of

✓ Resale within the state

✓ Input for manufacturing or processing of goods in the state
✓ Use of containers, labels and other materials for packing of goods in the state
✓ Inter-state trade
✓ Agency transaction as prescribed

For the rubber products the tax rate fixed was 12% and it may change every year based on the
budget prepared by the finance minister. The tax policies are based on the central sales tax
act. The tax has to be paid properly if not it will be recorded as an offence and the officers
responsible are punishable.
The company have separate officers to maintain and deal with the central and the sales tax.

INCOME TAX
Based on the return, income tax is calculated and once in 3months tax is paid and report is
prepared and sent it to the Fenner (India) Ltd head office, U.K.

MONTHLY SALES TAX

Due to sale of conveyor belts 3% of sales tax is calculated and paid to the government. This
amount is collected from the customer and paid to the government.
COSTING
Maintenance of costing is the very important factor in Fenner (India) Ltd, raw material cost,
input- output ratio, overheads-direct and indirect costing information's are entered in the
system based on that budgeting is done
4.3 PRODUCTION DEPARTMENT

In Fenner (India) Ltd, production department produces the goods under intermittent
production system They have adapted zero inventories to avoid keeping goods under stock.
The products produced under Fenner are automotive products. The major products produced
here are Oil seals, V-belts, Timing belts, Power flex.

The raw materials required to produce these products are Neoprene GRT, Neoprene WRT,
SBR 1502, N-3980 Nital Rubber, N 3345, AR71 Rubber, Viton, Silicone 6140, ISNR Rubber,
Polyester flock The production undergoes for three shifts. They have got ISO 14001
certification for quality standards.

MATERIALS HANDLING EQUIPMENT

The equipment used for handling materials is FORK LIFT. It is of different capacity such as 1
tone, 2 tones etc.

BEST MANUFACTURING PRATICES

The defects of producing products are getting reduced by means of adapting SIX sigma
concepts under production. They have also adopted Five "S" concepts for maintaining their
organization and also practicing TQM for maintaining their quality level.

MAINTAINENANCE

In Fenner (India) Ltd they are practicing both preventive and breakdown maintenance since
the production runs throughout the day. Every Sunday they allow the engineers to verify
conditions of the machineries in order to maintain the machines properly.
PRODUCTION POLICY

1.To demonstrate and maintain leadership in design development manufacturing and supply
of engineering rubber products.

2. To continually improve to quality and reliability of products by consistently adhering to

quality management system.

3. To enhance delight in terms of quality cost, delivery and expatiations.

4. To improve employee, Satisfaction, Safety and environment friendliness.

5. To be in front line to in the business by upgradation based on technological capabilities.

Best Manufacturing practices followed by Fenner (India) Itd:

o Lean manufacturing
o TQM (Total Quality Management)
o TPM (Total Productive Management)
o Poka Yoke (Error Proof)

They are working hard to avoid the seven type of production losses such as value loss,
processing loss, accuracy loss, timing loss, idling loss, communication loss and cost loss
PRODUCTION PROCESS

It deals with the production of V-Belts under the category of automotive belts The following
are the process involved in the production of V-Belts.

Bias cutting and sandwiching

↓
Building
↓
Pot curing
↓
Cooling
↓
Stripping
↓
Cutting
↓
Side grinding
↓
Inspection
↓
Coding
↓
Dyeing and arrival
BIAS CUTTING
It involves 2 processes

➢ First process includes cutting of rubber sheet in 650mm.

➢ Second process includes pasting of rubber sheet (which has been cut in fist process)
into another rubber sheet in order to make rubber sheet stronger
BUILDING

It is the process of putting different materials together. In this stage the workers will build 3
materials together by way of using an appropriate mould.

It involves 3 processes.
✓ First process comprises of pasting the label(which consist of material code and
company's name) in the rubber sheet and rolled on
✓ Second process comprises of rubber sheet is then rolled on with the help of
cord(which is a thick thread like substance)
✓ In third process a material called Jacket is rolled above the cord. The output from the
building process is termed as "Sleeve"

CURING

In this stage the sleeve along with the mould will be heated at a specific temperature in
order to merge the material with the mould.

✓ The inner pressure of heating is 80°c

✓ The outer pressure of heating is from 150°-180°c
COOLING

In this stage the sleeve along with the mould which is heated will move on to the next stage
of cooling. Cooling is done for 5 minutes in order to make the sleeve and mould flexible.

STRIPPING

Stripping is the process which is done in order to separate the mould from the sleeve.
CUTTING

Cutting plays vital role in belt manufacturing cutting can be classified in two types.

1) Reverse cutting

Angle may differ from 26°c-40°c

2) Forward cutting
Power flex have two types of cutting machines

1) Scholz cutting machine:

It is an automatic cutting machine. It has an advantage of low waste generation. It has a

variety of mondrel for different angle belts. It is faster than Japan cutting machine. It includes
high cost which is the main disadvantage of this machine.

2) Japan cutting

It is a semi automatic machine. This machine incurs low cost is the main advantage. A
huge amount of machine is general from this machine. Its work is to cut the belts from the
sleeve. It contains two shape knives. One knife is to cut the waste and another one is to cut
the belt.

SIDE GRINDING

Side grinding is the process for smoothening the edges of the belt after cutting is done. It
is done in order to manufacture belts which are completely flat and even, without any rough
areas.

INSPECTION

Inspection is done in order to check whether the finished belt (product) is having any
lumps, holes, over cording etc.
CODING
Coding is done in order to check the length of the finished belt by way of using two pulleys
in varying sizes. At the stage the belt which will be fitted according to the fixed length it will
move on the relevant process. The belt which will not match the criteria, it will be rejected
and termed as waste. It will come under product waste.

DYEING AND ARRIVAL

In this stage the finished belt is sinked into a black colour solution in order to make the
appearance of the belt more attractive (black).

RAW EDGE COGGED BELTS

FEATURES
➢ Longer better life
➢ Better Battery charging
➢ Increased Engine Power
➢ Superior Engine cooling and zero slippage belt
TIMING BELTS

FEATURES
❖ Accurate speed ratio.
❖ Compact design, light weight.
❖ Quick easy fitting.
❖ Economical.
❖ No belt slippage.
❖ Noise free, corrosion free.
❖ Maintenance free,
❖ No lubrications

The main objective at the time of production was

❖ Zero accident
❖ Zero breakdown
❖ Zero Complaint
❖ Zero Defect

The regular customers of Fenner products are Maruti, Ford, TVS motors, Bajaj auto, Daewoo
motors, Royal Enfield motors, Ashok Leyland, Toyota, Eicher motors, Swaraj Mazda, Indian
railways etc
4.4 SALES CO-ORDINATION DEPARTMENT PROCESS

Customer order
↓
Analyzing the order
↓
Instruction from Sales
↓
dept to production dept
↓
Purchase of Raw material
↓
Raw material to Production
↓
Finished goods to Sales dept
↓
Sales dept to customers

Sales co-ordination department plays an important role in Fenner (India) Ltd. The sales co-
ordination department mainly handles the order placed by the customers. Based on the
customer's order the sales co-ordination department will instruct the purchase department to
purchase the raw materials.

Before the raw materials reach the purchase department, the quality of raw materials was
inspected by the gate office. Then the raw materials are move towards production department.
After the arrival of raw materials the production department, manufactures the required
product based on the order placed by the sales department. Until the products get delivered to
the customers it will be in the store under the control of sales co-ordination departmen
QUALITY CONTROL

❖ Fenner (India) Ltd has been awarded with the below quality certification:

❖ ISO 9001:2000 (for Design and Manufacturing of V Belts for Industrial Appls).

❖ ISO/TS 16949:2002 (for "and" of V Belts, Timing Belts, Oil Seals and Moulded
rubber Parts for Automotive applications).

❖ API (American Petroleum Institute) First and one and only company Accredited with
this certification.

❖ ISO 14001:1996 (Environmental Management System Standard)

❖ OHSAS 18001 (Occupational health safety assessment).

❖ TPM (Total Productive Maintenance) approved by JAPAN UNIVERSITY. The above

certification fix's the standard for the quality of the production so the quality is being
maintained & retained.

VARIOUS TYPES OF TESTING

1. Product testing
2. Safety testing
3. Drum friction testing
4. Laboratory flame testing
5. Gallery fire testing
6. Electrical resistance testing
7. Tear Strength testing
8. Dynamic testing
4.5 PURCHASE DEPARTMENT

INTRODUCTION

The initiative functioning of the purchase department is with the indents from the stores
department normally, purchase department maintains the supplies list of purchasing of items.
Stores department receives indent from the department. Then the stores department checks
the supplies list for supply of requested items. Then the quotations are invited from various
suppliers. After receiving quotations from various suppliers it will be processed and checked
against convenience efficiency rate and conditions for the comparative statements based on
pre defined for favorable conditions a supplier is selected. Supplier purchase order consist of
various information like list and delivery schedule with the terms and conditions a copy of
purchase order is sending to and account department also include generation of remainder
note to suppliers for every non-delivered good after the delivery date is expired. The goods
received is verified against goods inwards note (GIN) generated by stores department any
generation or modification is quality rate and others.

IMPORTANCE OF PURCHASE DEPARTMENT

Purchasing refers to a business or organization attempting to acquire goods or services to

accomplish the goals of the enterprise. Though there are several organizations that attempt to
set standards in the purchasing process, processes can vary greatly between organizations.

Typically the word "purchasing" is not used interchangeably with the word "procurement",
since procurement typically includes expediting. Supplier quality, and Traffic and Logistics
(T&L) in addition to purchasing.
PURCHASING PROCESS

Product requirement

(i.e.) raw material

Select vendor

Test product

Get quotation

Negotiate discount

Place order

Follow up

Material to production

PURCHASE REQUISITION

For manufacturing process production department send purchase requisition slip to the
purchase department, items needed for production is specified in the requisition slip and it is
sent to the purchase department.

SELECTION OF SUPPLIER

After receiving the purchase requisition from production department they will prepare the
quotation and they receive various quotations from different sellers. According to low price
with good quality supplying supplier is selected and order is placed to them sample of
material is received from the supplier before purchasing the material
EXISTING VENDORS

Vendors are supplying various items are treated as approved vendors on the basis of their past
performance in supplying the respective items.

SELECTION OF NEW VENDORS

Based on the information on vendor capabilities, manager (purchase) prepares a vendor

appraised report and forwarded to MD, with Purchase manager in consultation with M D. will
negotiate price and payment terms with the vendor, finalizing the trial order will be placed.

The trial order will be authorized by M D. If the ordered material receives within the
schedule time and conforms fully to requirement the trial purchase order, the vendor will be
approved by MD and be enrolled in the approved vendors list.

EVALUATION OF VENDORS

The approved vendors will be evaluated by manager (purchase) once in six months on the
basis of their performance.

The performance parameters for the evaluation will be quality and delivery performance.

PLACEMENT ORDER

After selecting the supplier, placement of material is made

5. TRAINING EXPOSURE
CHAPTER-5

TRAINING EXPOSURE

5.1 LEARNING OUTCOMES

The organizational study helped me to know about the real industrial activity which in turn
helped for the better understanding of the concepts which have been studied theoretically.
The study helped me to know the structural working of an organization and the basic
functioning of all the departments.
As a trainee, I had a good opportunity to communicate with organization people. I also
learned how to interact with higher officials and how to survive at a new place.
The study helped me to know about the automotive industry as a whole and the international
business environment.
I practically had a chance to learn about interpersonal skill, teamwork, listening skill etc.

5.2 SWOT ANALYSIS

STRENGTHS
➢ Proactive initiation on environmental related issues.
➢ Awareness about emerging technology, management and market environment.
➢ Organized/institutionalized mechanism/systems for sourcing of raw materials.
➢ Level of skills and knowledge related to quality, productivity, financial etc.
➢ Research and Development activities for new product development and existing
product improvement.
➢ Investment interests for new projects/developments.
➢ Trouble free supply of input materials for processing.

WEAKNESS
➢ Underutilization of machinery resources.
➢ Environmental pollution due to processing of rubber
 ➢ Poor employee productivity.
➢ High cost of new spare parts and high cost of maintenance.
➢ High temperature and heat inside the production plant due to processing machines
exhaust.
➢ Sample development time is high due to the information and trail sample
transformation across the value chain of the company.

OPPORTUNITIES

➢ Huge volumes of orders from exports and local sectors.

➢ Mass production capacity is available and unused.
➢ Exposure to better work practices and technology.

THREATS

➢ Non-tariff barriers like, Social accountability, environment management systems.

➢ Scarcity of water.
➢ Stringent pollution control norms.
➢ Time taken to produce a single unit of product output.

5.3 Suggestions

✓ Overall, the internship proved very useful to me and based on my observations in the
past four weeks, 1

✓ share my suggestions as below.

✓ Sample Turn Over Time: This can be improved if the time is reduced between
information collection and trial sample transformation across the value chain of the
company.

✓ The current utilization of machinery resources can be further improved

✓ Environmental pollution can be reduced due to processing of rubber as it affects the

environment.
✓ Poor employee productivity can be further improved by planning and motivation.

✓ High cost of new spare parts and high cost of maintenance greatly affects the
profitability of the company, so it must be reduced by considering various suppliers.

✓ High temperature and heat inside the production plant due to processing machines
exhaust can be further reduced to reduce the environmental issues and also the
human's working inside the production unit.

✓ The first day process for the internship candidates can be further improved by
allocating a HR staff to the candidates and a quick induction will help
CHAPTER-6

CONCLUSION

The training at Fenner (India) Limited has helped to gain corporate knowledge about various
functional department. The organization structure describes the delegation of power and
authority in the organization The training has given good experience to perform the activities
that are allocated within a scheduled time.

The companies continuously invest not only in technology and world class manufacturing
facilities but also in market developing across the globe. The company believes that
excellence is the moving target and hence it learns and improves continuously by bench
marking with the best in class. The training has helped to improve the interpersonal skill in
group co-ordination and moral, also the organization has provided a good climate for learning
and growth for trainees.