analysis of tax

8/2/2019 Analysis of Tax

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INTRODUCTION

Now a day, cotton Spinning industry plays an important role in our

economy. India being a largest agriculture country, it also importance to

textile industry. Industrial production to a largest extent depends on

agriculture products such as cotton. T he textile production covers various

processes such as ginning, spinning weaving, bleaching and dying.

Cotton industries play vital role for in promotion of the

welfare of the country. The cotton textile industry occupies a predominate

position in the Indian economy and contributes 20% of the foreign

earnings.

In India, there are hundreds of the spinning mills are

geographically located.Coimbatore belt has much of spinning mills.

Many spinning mills have been gradually around the cotton market such

as Rajapalayam, Virudhunagar and Theni.


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OBJECTIVES

To gain knowledge about the spinning industry

To secure the in-depth knowledge about the finance and marketing

aspects in the concern

To know the over all working performance of an organization

To know all department function and responsibilities

To find out the problems faced by the company and offer suitable

solutions.


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HISTORY OF SPINNING IN ARUPPUKOTAI

Aruppukottai (Tamil: ) (English: erupt-Ducati) is a town andamunicipalityin Virudhunagar districtin the state ofTamil Nadu, India. Aruppukottai is about45 km from Madurai. Its in the middle of Madurai-Tuticorin National Highways NH-45B. Astamils were original inhabitants of this place, it was called Aravakottai. Aravam means Jasminein Tamil language. Since this city is known for jasmine cultivation, it was called "Aravakottai"which means 'Fort of Jasmines'. The small villages and towns surrounding Aruppukottai arefamous for production of jasmines.Sri Ramana Maharishi was born inTiruchuli near

Aruppukottai town. Aruppukottai was Part of king Sethupathi of Ramnad. Aruppukottai is wellknown for its high quality Educational Institutions. Aruppukottai is maintaining the state topplace in tenth and plus2 examinations among the 68 educational districts in Tamilnadu for thelast 26 years.

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http://en.wikipedia.org/wiki/Tamil_languagehttp://en.wikipedia.org/wiki/Municipalityhttp://en.wikipedia.org/wiki/Virudhunagar_districthttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Ramana_Maharishihttp://en.wikipedia.org/wiki/Ramana_Maharishihttp://en.wikipedia.org/wiki/Tiruchulihttp://en.wikipedia.org/wiki/Tamil_languagehttp://en.wikipedia.org/wiki/Municipalityhttp://en.wikipedia.org/wiki/Virudhunagar_districthttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Ramana_Maharishihttp://en.wikipedia.org/wiki/Tiruchuli


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HISTORY OF SPINNING MILL

The spinning jenny, a multi spinning wheel invented during 1764

by james hargreaves,Dramatically reduced the amount of work needed to

produce yarn of high consistency with a single worker able to work eight

or more spools at once. At roughly, Richard Arkwright and team of

craftsmen developed the spinning the frame, which produced a stronger

thread than the spinning jenny. Too large to be operated by hand, a

spinning frame powered by a water wheel became the water frame.

In 1779, Samuvel Crompton combined elements of the spinning

jenny and water frame to create the spinning mule.This produced a

stronger thread, and was suitable for mechanization an a grand scale. A

later development, from 1828/29, was ring spinning.

Initially, Agriculture was the principle source of livelihood people

of ARUPPUKOTTAI. In the mid 1900s, the small town of

ARUPPUKOTTAI radually evolved into a thriving business community.

Due to the enterprising and hard working industries, particularly cotton

based flourished.


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PROFILE OF THE COMPANY

VVR TEXTAILS MILL (P)LTD was established of group with

unique that allow us to cater exotic production in weaving .We are part of

the VVR group, that is renowned for its ingrained in the spinning mill.

Exports

Our unit is private recognized exports house. Exporting yarn to

Chennai,ARUPPUKOTAI

Employee

More than 500 wheel trained employees are engaged training and

retraining is a continuous process for achieving target values set for

quality of production

Quality

Our Iso 9001. 2008 certification is endorsed by DNV and certifies

that our quality management systems for various yarn complies with the

international standard.


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Produce

Manufacturing yarn of 6s to 12s count of open end spinning

machines and 16s to 120s count cared and combed on classical and

spinning process.

Team

The team is headed by visionary that has taken the pedigree of

private limited of different facts of government manufacturing.


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MANAGEMENT

The board of VVR spinning mill pvt,consist of four directors of

whom four are male and one director is female director. The male

directors activity take part in the management with the female director

supports their activities. The profile of the main directors are us under.

S.No Name of director Role in the unit

1. V.V.R.NAGAMA

NAUDU

Purchase control

2. N.MUTHU Production marketing and logistics

3. N.MURUGAN Office Management

They are doing yarn trading for more than 30 years and their

grandfather was a pioneer in yarn trading at ARUPPUKOTTAI.


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PARTNER DETAILS

Present Dirrectors of VVR and their share holdings pattern is

given here under.All the directors are related to one another and VVRis a

very closely held company.

S.No

Name of

Director/Share

holder

Share

holder

Share

holding(Rs)percentage

1. VVR.Nagama naidu 600000 6 60%

2. N.Muthu 200000 2 20%

3. N.Murugan 200000 2 20%

Total 1000000 10 100%


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ANALYSIS OF TAX

Spinning unit should have been register under tamil nadu sentral

sales tax act.some spinning units may happen to purchase machine as

wellas raw metrial from outside.if areregisterthey may get goods from

other payig central sales tax by 4% submitting a special form unter sales

tax act.if not register they have to pay tax at 12.5 to the seller.

If they aupply the finshed goods outside tamilnadu in one type

I the type of hank yarn tax will exempted.if the cone yarn sales they pay

the ales tax at 4%


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NET PROFIT

YEAR 2005 2006 2007

estimate

Actual

6.08 8.55 6.54 10.7

a) it hae a sale turn over of rs 6.53 during the year 2005-2006

againts sales of rs.8.55 croses with a shortfall of rs 2.02 srose. the reason

for shortfall.

b)the average selling prices assumed at Rs.45 for 20,s count rs.117

for the 30count


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PERSONNEL

Personal function plays a very important role in every organization,

in this company, there are 600 workers are working. Among which 400

are female and the rest are male workers.

Method of salary fixation

They fix the salary for workers according to their performance,

experience and qualification.

EMPLOYEES SALARY IN (Rs.)

PER MONTH

Manager

Foreman

workers

10000


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STEPS TAKEN TO MOTIVATE THE WORKERS

The company wants to take various steps to motivate the

workers.they motivate the employees in the form of providing regular

incentives.

Increment

To motivate the workers, the management provides regular

increment to them. The increment is given to increase the basic salary.

Promotion

The management gives bonus and incentives to the workers to

improve the quality of work and to motivate them.

Tour

Management conducts tour to the workers at the end of accounting

period. By the tour program, the relation between the workers and the

management becomes strong.

Pure drinking water

In this spinning mill, the workers are provided with pure drinking

water. Drinking water is placed near the working area to prevent

unwanted for water.

Cleanliness

The factory of is cleaned daily at the end of each day. Since the

factory is located in good atmosphere, the chance to getting dust is very

less.


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OFFICE

An office is generally a room or other area in which people work,

but may also denote a position within an organization with specific duties

attached to it. Office as place originally referring to the location of ones

duty. In legal writing, a company or organization has offices in any place

that it has an official presence, even if that presence consists of, for

example, a storage silo rather than an office.

Incoming Mail

The incoming mail is brought by the office boy and the mail are

opened by the manager.

Getting orders

They are getting the orders through Fax, E-mail, Phone and also

mainly by directly meet the customers.

Filing

Files are kept in the separate cup board. There are nearly 100 files

in that cup board.

Maintenance of office equipments

They maintain the office equipments machines by daily by putting oil.

And wash it whenever needed.

They clean the fan once a week.

They clean the office walls & ceiling once a week.


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They white wash it during pooja & pongal.


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Working Hours

The department is working 24 hours by dividing the total

hours in to 3 shifts.

1st Shift - 7.00am to 3.00pm

2ndShift - 3.00pm to 11.00pm

3rdShift - 11.00pm to 7.00am

Bonus

Bonus is given to them for 1 times in year.


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FINDINGS

To take the measure of its weight in the shots and recurrent with

meter to around roll it. To packing the folding round of rolls in the pack

and shots no, bola no, weight pieces are denoted it.

Powercut

In this period the power failure is a major problem for all

industries. It will affect production.

Storage facilities

There is no proper place for storing the raw materials. This results

in wastage of raw materials.

Area cleaning

They not kept the factory clean. It will leads some respiratory

problems to their workers.


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SUGGESTIONS

By way of controlling labour turnover, the employees are given

with proper incentives liken watches. Wall clocks etc., to the

worker who is not taking for period of one year.

They may arrange adequate facilities.

They may properly clean the machineries daily and oil-it as least

once in a week for the betterment of the machinery.

They should supply product at a low price with quality between

then others.

They may provide bus facility to the workers to arrive late comers.

It

encourages the workers to come earlier to the office.


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CONCLUSION

This training provides more practical knowledge and experience

about spinning industries to the trainee. It also helped to the trainee in

gaining knowledge about the varies managerial practices followed by a

well-established concern.

The trainee had the chance to know the different' kinds of people.

This will be very useful for the career of the trainee.

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