the puducherry state weavers co - operative society ltd., no. p.57 ( pontex )

THE PUDUCHERRY STATE WEAVERS

CO-OPERATIVE SOCIETY LTD., NO.P.57 (PONTEX)

WELCOMES YOU

ORGANIZATION CHART

DEVELOPMENT COMMISSIONER FOR HANDLOOMS, NEW DELHI

DIRECTOR OF HANDLOOMS (STATE LEVELS) OR

COMMISSIONER FOR HANDLOOMS[BOTH CO-OPERATIVE AND PRIVATE SECOTR]

[FOR PUDUCHERRY – REGISTRAR OF CO-OPERATIVE SOCIETIES]

JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES

DEPUTY REGISTRAR [HANDLOOMS]

PONTEX PONFAB TEXPRO SPINNING MILLS

BRIEF NOTES ON

THE WORKING OF THE SOCIETY

Originally registered as : Model Weavers Industrial Co-operative Society

Date of Registration : 2.3.1957

Date of Starting : 20.5.1957

Later converted as : Puducherry State Weavers Co-operative Society

Date of conversion : 1.3.1973

Area of Operation : Union territory of Puducherry

Affiliated Societies : 13 nos. of Primary Weavers Co-operative societies

The Puducherry State Weavers Co-op. Society : Apex body

Trade Name : Pontex

Last election General Body held on : 5.6.2003

Period of committee of management : June 2003 to December 2005

Managed by the Administrator : 15.7.2005 to till date

Last general body meeting held on : 31.7.2010

OBJECTIVE OF THE SOCIETY

PRIME OBJECTIVE

To ensure continuous employment to the weavers

in the co-operative fold

Arranging timely and regular supply of yarn

Marketing their finished goods

Giving necessary technical guidance to maintain

the quality of fabrics

PRIME OBJECTIVE .. CONTD.

The society is to procure the entire handloom

products which produced by the primaries

To arrange for marketing the handloom fabrics

and liquidate the entire finished products without

accumulation.

ORGANIZATION CHART

ORGANIZATION CHART AS ON DATE

ADMINISTRATOR

MANAGING DIRECTOR

FINANCE MANAGER

INTERNAL AUDITOR

SENIOR MANAGER (PRODN)

SENIOR MANAGER (MKTG)

ESTABLISHMENT SECTION,

ACCOUNTS SECTION,

CREDIT SECTION AND COMPUTER

SECTION

AUDIT SECTION

PRODUCTIONSECTION

MARKETING SECTION

GOODS CLEARANCE SECTION

Retail outlets

WORKING STAFF STRENGTH AS ON DATE

1. Managing Director - Deputy Registrar on deputation from Co-op.

Department

2. Finance Manger - Co-op. Officer on deputation from Co-op. Department

3. Internal Auditor - Co-op. Officer on deputation from Co-op. Department

WORKING STAFF STRENGTH AS ON DATE

S.No

Particulars Strength

S. No

Particulars Strength

1. Senior Manager 2 B/f 47

2. Deputy Manager 2 13 Salesman Gr-I/ Saleswomen Gr-I

9

3. Asst. Manager 3 14 Drivers Gr-II 1

4. Superintendent 2 15 Attender 3

5. Tech. Supdt. 4 16 Godown Asst. 24

6. Sr. Stenographer 1 17 Salesman/Saleswomen 8

7. Sr. Clerk (S.G) 6 18 Peon 2

8. Supervisor 1 19 Helper 5

9 Sr.Clerk 16 20 Packer 4

10 Driver Gr-I 1 21 Daily rated employee 4

11 Jr. Clerk 8

12 Computer Operator

1

C/o 47 Grand Total (103 + 4) 107

AUDIT STATUS FOR AUDIT CLASSIFICATION

Year Society classified

Gross Profit Net profit / Net loss

2005-2006 “B” 2,71,93,473.00 (+) 45,34,323.00

2006-2007 “B” 2,38,48,210.00 (+) 36,64,110.00

2007-2008 “C” 2,85,36,155.00 (-) 2,02,979.00

2008-2009 “C” 2,45,30,560.00 (-) 32,71,474.00

2009-2010 “C” 2,54,83,203.00 (-) 64,40,192.00

Final audit for 2010-2011 is under progress and will be submitted to Audit section by 15th June 2012.

Status of the Audit:

CA informed that he will take up the audit in one full stretch by end of this month and complete.

AUDIT STATUS FOR AUDIT CLASSIFICATION

WORKING CAPITAL OF THE SOCIETY

WORKING CAPITAL AS ON 31.3.2012

S.No ParticularsAmount (Rs. In lakhs)

1 Cash Credit Loan from Pondicherry State Co-operative Bank

1300.00

2 Government Share Capital 319.75

3 Share Capital from others 4.93

Total 1624.68

PRODUCTION

PRODUCTION

The society purchases grey hank yarn and cone

yarn from the Spinning Mills through National

Handloom Development Corporation.

The grey hank yarn is dyed in Texpro and cone yarn

are processed and sized as Beams in Sizing Mills at

Erode.

And this yarn both grey, dyed and beam are

supplied to the affiliated primary societies according

to our requirements without interruption throughout

the year.

Nearly 2,600 weaver-members are covered under

Co-operative fold (including allied workers)

MAJOR VARIETIES PRODUCED BY PRIMARIES

Lunghies

Towels

Bedsheets

Pillow Covers

Shirtings

Bedspread Gada

Saree Gada

Blouse Gada

Dhothies

Kerchieves

YearActive Production

Members Looms Meters (in lakhs)

Value (Rs. in lakhs)

2007-2008 5560 1906 22.73 718.25

2008-2009 5220 1433 12.60 507.41

2009-2010 5272 1455 16.07 619.95

2010-2011 5537 1407 14.05 631.65

2011-2012 5537 1074 9.23 555.85

PRODUCTION PARTICULARS FOR THE FIVE YEARS

MARKETING CHANNELS

MARKETING

The entire handloom clothes being produced by

the Primary Weavers coop. societies are procured

by the Apex society, which undertake marketing of

these goods through 12 direct retail outlets, 4 by

agents, 2 by consignment agencies and 2 head

office

sales .

We are marketing our products by

conducting handloom exhibitions at Puducherry,

Karaikal, Neyveli and at other places during festival

seasons.

We participate in National Handloom Expos

organized by the Development Commissioner for

Handlooms, New Delhi at the State levels.

I. DIRECT SHOWROOMS:

1. Puducherry (J.N.Street) 2. Puducherry (T.T.C.) 3. Puducherry (Chetty) 4. Karaikal 5. Mahe 6. Yanam 7. Cuddalore 8. Neyveli 9. Erode 10. Kolkata 11. Thiruvannamalai, 12. Villupuram

SALES OUTLETS

II. AGENCY SHOWROOMS:

1. Chidambaram  2. Mayiladudurai  3. Kumbakonam  4. Nagapattinam  

III. CONSIGNMENT SHOWROOMS:

1. The Pondicherry Co-op. Wholesale Store 2. The Vadasery Weavers Coop.Society, Nagercoil.

IV. HEAD OFFICE SALES:

1. Government Sales 2. Whole Sales

S.No.

Particulars Sales 2007-2008

Sales 2008-2009

Sales 2009-2010

Sales 2010-2011

Sales 2011-2012

1 Direct Branch 176.07 176.47 203.59 234.68 274.03

2 Agent Branch 64.86 70.93 72.34 92.38 97.23

3 Consignment Branch

11.99 13.57 13.36 14.72 9.10

4 Exhibition 124.38 150.01 146.19 175.82 143.16

5 Free Distribution Scheme

1325.37 1107.52 1202.77 79.78 1568.00

6 Head Office 35.10 26.35 32.36 28.43 20.82

Total Sales 1737.77 1544.85 1670.61 625.81 2112.34

SALES PERFORMANCE FOR FIVE YEARS(Rs. in lakhs)

PERFORMANCE GLANCE FOR LAST FIVE YEARS

PERFORMANCE AT GLANCE FOR THE LAST FIVE YEARS

Sl.No.

Particulars 2007-08(Audited)

2008-09(Audited)

2009-10(Audited)

2010-11(Unaudited)

2011-12(Unaudited)

1. Share Capital: Govt. 279.75 309.75 309.75 319.75 319.75

Others 4.89 4.91 4.91 4.91 4.91

2. Borrowings: C.C.L. 500.00 1000.00 1000.00 1000.00 1300.00

CCL availed 1363.64 1840.00 1682.53 1346.83 1279.99

3. Purchases: Yarn 261.29 249.71 287.94 908.06 224.33

Cloth 1189.70 1073.00 1188.26 310.29 1292.26

4. Sales : Yarn 347.04 301.52 340.88 373.83 371.00

Cloth 1732.40 1550.23 1668.32 625.81 2112.36

5. Gross Profit 285.36 245.31 247.50 355.88 405.47

6. Establishment & other Expenses

286.84 262.55 304.32 242.96 260.71

7. Interest paid 69.45 72.19 69.59 109.93 157.52

8. Profit / Loss (-) 2.03 (-) 32.71 (-) 39.30 (-) 47.27 (+) 31.83

9. Accumulated Loss -- (-) 2.03 (-) 34.74 (-) 74.04 (-) 121.31

10. Total Profit / Loss (-) 2.03 (-) 34.74 (-) 74.04 (-) 121.31 (-) 89.48

(Rs. in lakhs)

WEAVERS WELFARE SCHEMES

WEAVERS WELFARE SCHEMES IMPLEMENTED

Weavers Welfare Schemes implemented by the Apex

Society as an Nodel Agency

Lumpsum grant of Rs. 10,000/- to the family members of a

weaver who decease while in service.

Mahatma Gandhi Bunkar Bima Yojana Insurance Rs.60,000/-

Assistance for Family Planning Operation Rs.200/-

Free Dhothies and Sarees to weaver-members (once in a

year)

E.S.I. Medical facilities extended to the in-shed weaver-

members and to non covered E.S.I. members Rs.100/- per

month / member is being paid.

Assistance to purchase of Housing site (Rs.10,000/- subsidy)

Production Incentive to the weaver-members at 25% on the

previous year wages earned subject to a maximum of

Rs.5,000/- each.

Education Allowance:

I to VIII-Std., .. Rs. 400/-

VIII to XII-Std .. Rs. 600/- per

student

For College .. Rs.2,000/- per

academic year

Superannuation and Family Pension Schemes

i) Pension Rs. 500/- per month to such of those weaver-

members who earned average wage of Rs. 100/- per

month for the last three years before retirement.

ii) Pension Rs. 1,000/- per month to such of whose

weaver-

members who earned average wage of Rs. 300/- per

month for the last three years before retirement.

SUBSIDY RECEIVED FROM GOVERNMENT

SUBSIDY RECEIVED FROM GOVERNMENT

S.No

Particulars 2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

1 Hank Yarn Subsidy 9.23 15.65 15.40 15.38 27.31

2 Interest Subsidy 34.00 63.23 54.69 59.19 70.57

3 Publicity & Propaganda 10.44 10.31 9.52 5.22 --

4 Marketing Development Assistance 216.59 325.60 183.05 149.42 121.39

5 Production Incentive 75.00 71.82 50.59 51.40 54.56

6 Exhibition 4.65 5.70 -- 12.09 --

7 Weavers Welfare Fund 75.59 80.69 71.83 65.42 113.60

8 Thrift deposit -- 20.96 24.06 24.56 30.00

10 Rainy Season -- 38.15 27.19 26.45 23.29

11. Building Subsidy -- 22.50 -- -- --

12 Share Capital -- -- -- 10.00 --

13 Weavers Training -- -- -- 7.46 --

Total 425.50 654.61 436.33 426.59 440.72

(Rs. in lakhs)

ISSUES AND CHALLENGES

ISSUES AND CHALLENGES

Weaver-members reduced in the house holds weaving shed

of the Primary Weavers Co-operative Societies.

Weaver-members wages is lower than the daily wages in

other sector of workers, i.e. Maximum wages earned by

weaver-members is Rs.80-100; Minimum wages for other

sector is Rs.300-400.

Production reduced due to old-age of efficient weavers. New

weavers is not available.

Even though handloom product liked by the public,

traditional handloom product not liked due to changing taste.

ISSUES FACED BY THE SOCIETY:

PONTEX trained the weaver-members for weaving in

different products, but the trainees are reluctant to continue

in the weaving sector.

National Handloom Development Corporation insists the

advance payment for yarn supply to avail 10% of hank yarn

subsidy.

Processing and printing gets delayed:

i) Due to power cut;

ii) Increase in the processing and printing charges and

cost of transportation;

iii)The dyeing & processing units are declining the

processing work due to court order relating to

pollutions and environmental factors.

ISSUES AND CHALLENGES

Fully depends on the supply orders of Government .

The rates of handloom cloths are more than the mill made

fabrics.

Heavy competition in the market

Financial problems:

i) Due to non-receipt of cloth sales dues from the

Government;

ii) Non-receipt of plan and non-plan funds from the

Government.

CHALLENGES OF THE SOCIETY:

iii) Due to non-receipt of supply orders from the Government

departments in advance.

iv) Production carried out by PONTEX in anticipation of the

future order and thereby the stock is accumulated and

simultaneously payment of interest to the Cash Credit Loan

is increased abnormally.

PONTEX frameloom products such as Bedsheets Towels,

Pillow Covers, Furnishings, Shirtings kerchieves, Napkins etc.

are in heavy demand in the market, whereas there is only

350 framelooms working, which is not sufficient to meet out

the actual marketing requirements. This is actually a big

challenge.

The pitloom varieties such as lungies and saree gada are not

in much demand, whereas 1000 pitlooms are working.

Conversion of pitlooms into framelooms is not possible due

to heavy workmanship involving in frameloom weaving.

Because of this reason the weavers are reluctant to

switchover to frameloom products.

CHART PRESENTATION

PRODUCTION

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 718.25

2 2008-2009 507.41

3 2009-2010 619.95

4 2010-2011 631.65

5 2011-2012 555.85

PRODUCTION PERFORMANCE CHART

MARKETING

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 176.07

2 2008-2009 176.47

3 2009-2010 203.59

4 2010-2011 234.68

5 2011-2012 274.03

DIRECT BRANCH SALES PERFORMANCE CHART

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 64.86

2 2008-2009 70.93

3 2009-2010 72.34

4 2010-2011 92.38

5 2011-2012 97.23

AGENT BRANCH SALES PERFORMANCE CHART

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 11.99

2 2008-2009 13.57

3 2009-2010 13.36

4 2010-2011 14.72

5 2011-2012 9.10

CONSIGNMENT SALES PERFORMANCE CHART

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 124.38

2 2008-2009 150.01

3 2009-2010 146.19

4 2010-2011 175.82

5 2011-2012 143.16

EXHIBITION SALES PERFORMANCE CHART

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 1325.37

2 2008-2009 1107.52

3 2009-2010 1202.77

4 2010-2011 79.78

5 2011-2012 1568.00

FREE DISTRIBUTION SCHEME SALES PERFORMANCE CHART

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 35.10

2 2008-2009 26.35

3 2009-2010 32.36

4 2010-2011 28.43

5 2011-2012 20.82

HEAD OFFICE SALES PERFORMANCE CHART

PERFORMANCE CHART

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 279.75

2 2008-2009 309.75

3 2009-2010 309.75

4 2010-2011 319.75

5 2011-2012 319.75

SHARE CAPITAL RECEIVED FROM GOVERNMENT

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 4.89

2 2008-2009 4.91

3 2009-2010 4.91

4 2010-2011 4.91

5 2011-2012 4.91

SHARE CAPITAL RECEIVED FROM OTHER INSTITUTION

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 500.00

2 2008-2009 1000.00

3 2009-2010 1000.00

4 2010-2011 1000.00

5 2011-2012 1300.00

BORROWING CASH CREDIT LOAN LIMIT

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 261.29

2 2008-2009 249.71

3 2009-2010 287.94

4 2010-2011 908.06

5 2011-2012 224.33

PURCHASE OF YARN

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 1189.70

2 2008-2009 1073.00

3 2009-2010 1188.26

4 2010-2011 310.29

5 2011-2012 1292.26

PURCHASE OF CLOTH

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 347.04

2 2008-2009 301.52

3 2009-2010 340.88

4 2010-2011 373.83

5 2011-2012 371.00

SALES OF YARN

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 1732.40

2 2008-2009 1550.23

3 2009-2010 1668.32

4 2010-2011 625.81

5 2011-2012 2112.36

SALES OF CLOTH

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 285.36

2 2008-2009 245.31

3 2009-2010 247.50

4 2010-2011 355.88

5 2011-2012 405.47

GROSS PROFIT

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 286.84

2 2008-2009 262.55

3 2009-2010 304.32

4 2010-2011 242.96

5 2011-2012 260.71

ESTABLISHMENT & OTHER EXPENSES

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 69.45

2 2008-2009 72.19

3 2009-2010 69.59

4 2010-2011 109.93

5 2011-2012 157.52

INTEREST PAID

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 (-) 2.03

2 2008-2009 (-) 32.71

3 2009-2010 (-) 39.30

4 2010-2011 (-) 47.27

5 2011-2012 (+) 31.83

PROFIT / LOSS

S.No.

Year Amount (Rs.in lakhs)

1 2007-2008 (-) 2.03

2 2008-2009 (-) 34.74

3 2009-2010 (-) 74.04

4 2010-2011 (-) 121.31

5 2011-2012 (-) 89.48

ACCUMULATED LOSS

THE PUDUCHERRY STATE WEAVERS CO-OPERATIVE SOCIETY LTD. No.P.57 (PONTEX)

INDUSTRIAL ESTATE, THATTANCHAVADY, PUDUCHERRY-605 009.

Phone No.: (0413) – 2248412, 2248196Fax No. : (0413) - 2248471

Website Address : www.pontexindia.comE-mail address : pontex@rediffmail.com