Mano Jkumar2
Mano Jkumar2
INTRODUCTION
1.1 SPINNING MILLS IN INDIA
India spinning industry has gone from strength to strength since a very long time
now as it was the hub of cotton manufacturing. Cotton is not only consumed to the highest
extend in India but it has also become one of the most profitable textiles in the export
industry.
Spinning in India can be classified into 2 categories: medium and long staple. But
there was a shortfall in the ‘extra—long’ category that continued for many years. There was
a massive downfall in the cotton spinning in India during 2004-2005. The production rate of
cotton was about 4 lakh bales that was less by 5 lakh bales from the required rate which was
9 lakh bales. Mr.P.D. Patodia, the chairman of the Standing committee on Cotton, CITI-
CDRA said that the manufacturing of cotton will rise to 11-12 lakh bales in 2010.
The present downfall in the cotton production has witnessed a 50% increase in the
price of the Indian varieties of ELS, which is detrimental for the spinning industry in India.
Spinning mills require domestic accessibility of ELS cotton in increased quantity and of
better fiber qualities.
The Spinning mill unit was set up in the year 1995. Since inception we have evolved
to be a leader in cotton yarn spinning in south India, Commanding a premium in the market
for our products. As on the March 31, 2007, we have two factories for yarn spinning
housed in around 7.85 lakh square feet in Tamil Nadu with an installed capacity of more
than 1,40,000 spindles. The spinning division is in Tiruppur, Tamil Nadu. The weaving
division located in Coimbatore, Tamil Nadu, has an installation of 135 Sulzer projectile
wider width looms, in a working space of 2.2 lakh sq. feet. The company now also has a
technical textile division comprising of coating, flocking and lamination units.
India has been well known for her textile very ancient times. The traditional textile
industry of India was virtually decayed during the colonial regime. However, the modern
textile industry took birth in India in the early nineteen century when the first textile mill in
the country was established at Fort Gloster near Calcutta.
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The cotton textile industry, however, made its real beginning in Bombay, in 1850s.
The first cotton textile mill of Bombay was established in 1854 by a Paris cotton merchant
then engaged in overseas and internal trade. Indeed, the vast majority of the early mills were
the hand work of Paris merchants engaged in yarn and cloth trade at home and Chinese and
African markets.
The first cotton mill in Ahmedabad, which was eventually to emerge as a rival
centre to Bombay, was established in 1861. The spread of the textile industry to Ahmedabad
was largely due to Gujarati trading class.
The yarn spinning industry covers almost 25 percent of the total industrial
production of one of the words 10 largest economics. Trends are reviewed every year in
accordance with the need and fashion. An elaborate and detailed assessment is made on
various sectors of the yarn spinning such as, production consumption, and materials. The
legislative and the political consequences are also reviewed at the same. In addition to it,
other areas that are being reviewed in the yarn spinning sector are exports, imports, prices,
advertising, and sales promotion patterns.
Currently, India has bilateral arrangements under MFA with USA, Canada,
Australia, countries of the European Commission etc. Under MFA, foreign trade is subject
to relatively high tariffs and export quotas restricting India’s penetration into these markets.
India was interested in the early phasing out of these quotas in the Uruguay Round of
Negotiations but thus did not happen due to reluctance of the developed countries like the
US and EC to open their textile markets to Third World imports because of their high labour
costs. With the removal of quotas, exports of textiles have now to cope with new challenges
in the form of growing non-tariff / non-trade barriers such as growing regionalisation of
trade between blocks of nations, child labour, anti-dumping duties, etc.
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1.4 STRUCTURE OF INDIA’S TEXTILE INDUSTRY
COMPOSITE MILL
Relatively large-scale mills that integrate spinning, weaving and sometimes fabric
finishing are common in other major textile-producing countries. In India, however, these
types of mills are now operating in India, most owned by the public sector and many
deemed financially “sick”.
SPINNING
Spinning is the process of converting cotton or manmade fiber into yarn to be used
for weaving and knitting. Largely due to deregulation beginning in the mid-1980s, spinning
is the most consolidated and technically efficient sector in India’s textile industry. Average
plant size remains small, however, and technology outdated, relative to other major
producers. In 2002/03, India’s spinning sector consisted of about 1,146 small-scale
independent firms and 1,599 larger scale independent units.
Weaving and knitting converts cotton, manmade, or blended yarns into woven or
knitted fabrics. India’s weaving and knitting sector remains highly fragmented, small-scale,
and labor-intensive. This sector consists of about 3.9 millions 1 and looms 380,000 “power
looms are small firms, with an average loom capacity of four to five owned by independent
entrepreneurs or weavers. Modern shuttle less looms account for less than 1 percent of loom
capacity.
FABRIC FINISHING
Fabric finishing (also referred to as processing), which includes dyeing, printing, and
other preparation prior to the manufacturer of clothing, is also dominated by a large number
of independent, small scale enterprises. Overall, about 2,300 processors are operating In
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India, including about 2,100 independent units and 200 units that are integrated with
spinning, weaving, or knitting units.
CLOTHING
The textile industry in India covers a wide gamut of activities ranging from
production of raw material like cotton, jute, silk and wool to providing high value-
added products such as fabrics and garments to consumers.
The industry uses a wide variety of fibers ranging from natural fibers like cotton,
jute, silk and wool to manmade fibers like polyester, viscose, acrylic and multiple
blends of such fibers and filament yarn.
The textile industry plays a significant role in Indian company by providing direct
employment to an estimated 35 million people, by contributing 4 percent of GDP
and accounting for 35 percent of gross export earnings. The textile sector contributes
14 percent of the value-addition in the manufacturing sector.
Textile exports during the period of April-February 2003-2004 amounted to
$11,698.5 million as against $11,142.2 million during the same period in the
previous year, showing an increase of around 5 percent.
Estimates say that the textile sector might achieve about 15 to 18 percent growth this
year following dismantling of MFA.
Today India is booming with fashion and lifestyle, with the organised retail trade
growing at a rate of 30% per annum. The Indian apparel or Indian garment industry is
pegged at more than 90,000 cores with nearly 13% growth per annum. The men’s garment
or clothing segment constitutes nearly 45% of the total apparel market and growing at a
constant rate each year. The share of organised branded segment in men’s wear is fast
increasing in the Indian apparel market.
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indirectly. The Indian Textile Industry contributes approximately 5 percent to GDP, and 14
percent to overall Index of Industrial Production (IIP).
To manufacture, import, export, buy, sell and/or otherwise deal in all kinds of
textiles, Yarn, Fabric, Fibres, Garments coverings, coated fabrics, hosiery and silk or
merchandise of every kind and description and other production goods, articles and things
as are made from or with cotton, nylon, silk, polyester, acrylics, wool, jute and other such
kinds of fiber by whatever name called or made under any process, whether natural or
artificial and by mechanical or other means and all other such products of allied nature
made thereof and all kinds of fashion & lifestyle products and accessories.
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CHAPTER - II
COMPANY PROFILE
2.1 INTRODUCTION
D.P Textiles Private Limited (SVTPL) is a leading Private Limited Indian Non-
Government Company incorporated in India on 20 January 1984 and has a history of 39
years and eight months. Its authorized share capital is Rs. 10,00,000 and its paid up capital
is Rs. 0. It is inolved in Spinning, weaving and finishing of textiles.
D.P Textiles Pvt Ltd is listed in Trade. India’s list of verified sellers offering
supreme quality. Buy in bulk from they for the best quality products and service.
The mill was positioned in Tiruppur District, Southern India, and possesses a team
of highly qualified and experienced professionals who have expertise in the business. Apart
from being a cotton yarn manufacturer, supplier, and exporter the company has been
vigorously engaged in cotton waste trading and has more than 38 years of experience in raw
material trading. Since inception, we have been serving to numerous clients not only in
India but overseas also with excellent eco friendly colored yarns, high absorbent mop yarns,
duster cloth yarns, rope yarns, etc.
Phone No : 7373769390
TIN No : 33AAACG6590L1ZD
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FACTORY DETAILS
Number of QC staff :5
Machine : 65 Count
Package : 40
Timings : 6 AM to 2 PM
2 PM to 10 PM (8 hours)
10 PM to 6AM
Carding-18 Rm
Winding-550
Simplex-750
Like any other business entity, Spinning Mills entered the industry after an
opportunity arose to make revenues from a lucrative market. The textile industry is growing
at a fast rate because of the development of the fashion industry. With the growth in demand
for cotton yarn in Asia and Europe, Spinning Mills has made numerous objectives and goals
that the company wants to achieve in future. There are short term and long term objectives
for the company. These set objectives and goals are intended to put a score card for the
performance of the company and set clear targets to be achieved. The success and growth of
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every company depends on the plans that the business sets to achieve, how big it needs to
grow and who its customers are.
Spinning Mills is contracting advertising firms to create brand awareness and make
the company a household name in the yarn segment.
Employee training programs will be conducted on an annual basis to ensure that the
workforce is well equipped to carry out their mandate.
Carrying out extensive research on customer service to ensure that both local and
foreign customers get the quality and uniqueness of product they require.
Community Social Responsibility is also a key mandate of the company. Having
invested in a health facility for the employees and their families, the company
intends to roll up the social work to an education level where deserving students
from the local community will get a chance to advance their education.
Planning of exhibitions on an annual basis to allow customers come and experience
the product quality sold by Spinning Mills.
Globalization of the company through Foreign Direct Investment. In the near future,
the company intends to open a branch in Pakistan. This is informed by the large
production of cotton in the country and the ease of doing business.
Spinning Mills targets to be listed by the end of financial year 2020. An IPO will
ensure that the Indian public is allowed to have a share and stake in the company
which intends to be among the top brands in the country.
Through marketing, advertising, skilled workmanship and cutting down of debts, the
company plans to increase its revenue collection to hit the 1 billion dollar mark by
2020. This will set path for the IPO and also increase the living standards.
Employee appraisals are also part of an organizational process. This is a process that
will be done at the end of every 2 years to ensure that workers perform to the best of
their ability.
The internet is becoming the biggets channel of communication. With time, by the
end of 2017, Spinning Mills plans to have a fully functioning online portal for both
sales and customer service.
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2.3 VISION
To achieve excellence in all sectors of the textile Industry, from fiber to finished
products constantly striving to be forefront of our industry and to generate highest possible
value die to all customers.
2.4 MISSION
To manufacture international quality yarn, fabric and ultimately the finished textile
garments with the highest level of competitiveness on parameters.
To be an ethically responsible organisation in all the aspects of the business.
To effectively harness and integrate all available technology across various elements
of the textile chain.
To cater to product innovation by mastering value added area like processing and
finishing.
STRENGTHS
WEAKNESSES
OPPORTUNITY
THREATS
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CHAPTER III
ORGANISATION CHART
MANAGING DIRECTOR
DIRECTORS
GENERAL MANAGER
DEPARTMENT
PRODUCTIO
PURCHASE FINANCE STORE SALES
N
DEPARTMENT
HEADS
WORKERS
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3.1 PURCHASE DEPARTMENT
The raw material plays an important role in the textile industry. Much attention is
given to purchase and selection of cotton by the management. According to their stable
length different type of cotton are used in the manufacturing of the different counts of yarn.
The raw material is purchased from Andhra Pradesh, Punjab and Gujarat. The
spinning mills are mostly dependent on the Northern India, for cotton variety of 25mm is
used in manufacturer of 40’s carded. Counts are based in the quality. MCUS, LRA, DCH-32
are some varieties used by the mill.
A cotton price varies based on the stable length increase. The purchased cotton bales
are stored in the godowns.
In this company production of yarn from cotton is carried out through much process.
The following are various departments of the company
MIXING
BLOW ROOM
CARDING
DRAWING
SIMPLEX
SPINNING
DRAWING
SIMPLEX
SPINNING
CONE WINDING
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3.3 FINANCE DEPARTMENT
An interim study report on the ailments that bother the textile sector, prepared by
Credit Rating Information Services of India Limited (CRISIL), has highlighted the need for
immediate extension of interest subvention to spinning mills in the wake of weakening
financial position and reduced cash flows. The said report was submitted to Commerce
Ministry this week by the Texpreneurs Forum, formed of different stakeholders in textile
industry here, which engaged CRISIL for the study.
“CRISIL study took stock of the conditions of the spinning sector across the country
so as to make the report comprehensive,” Prabhu Damodaran, secretary of Texpreneurs
Forum, told The Hindu.
One of the major findings is that nearly 80 per cent of the 750 surveyed spinning
mills in the country for the study have a low non-investment grade rating that could deny
them any scope of further borrowings from banks.
“It means that the financial health of mills have been deteriorating and non-
performing assets (NPA) rising,” Mr. Prabhu Damodaran pointed out.
As of December 2014, the public sector banks reported gross NPA of 10 per cent of
their advances to the cotton-based textiles sector against 5 per cent registered in December
2012.
3.4 STORE DEPARTMENT
The fabric store department is centralized in the apparel industry and all the fabric
comes to this unit first from the supplier and audited here and kept until it is distributed to
other units. For an export-oriented and bulk production garment industry, it is essential to
maintain a well-organized & well-equipped inventory system. The main responsibility of
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this department is to store all the raw material necessary to produce garments. This
department is subdivided into three sections. The storekeeper follows a strong and
appropriate working procedure.
CHAPTER IV
FUNCTIONS OF VARIOUS DEPARTMENTS
4.1.1 MIXING
Different types of quality of counts are produced. Various types of mixed cotton
called as stack mixing is fed into blow room.
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TYPES OF MIXING
Volume mixing.
Bin mixing.
Card mixing.
Weight mixing.
Automatic mixing.
Hand stock mixing.
Lap mixing.
MIXING
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4.1.2 BLOW ROOM
A spinning mill receives cotton in the form of hard- pressed bales. The bale cotton
also contains lost of impurities, the loose cotton is prepared in to a suitable package for
further process. This is lap form.
Before going to the different machines used in blow room processes, it is essential to
know about various blow room processes. The basic blow room operations include
Opening the bales of fibers and making cotton tufts as small as possible.
Cleaning the fiber removing all dirt, dust and waste materials from it.
Blending and mixing is essential to improve yarn quality and reduce
production cost.
Removal of micro dust particles.
Feeding to the carding machine.
Waste recycling.
4.1.3 CARDING
The proverb enunciated by Dr.Balls name by “to card well to spin well”, holds good
even today.
The process of enunciated started in blow- room process is completed here. After the
final operating and cleaning the fiber are converted from sheet to a rope known as the silver.
Cotton, wool, waste silk, other fibrous plant materials and animal fur and hair, and
artificial staple are subjected to carding. Carding produces a thin sheet of uniform thickness
that is then condensed to form a thick continuous untwisted strand called sliver. When very
fine yarns are desired, carding is followed by combing, a process that removes short fibres,
leaving a sliver composed entirely of long fibres, all laid parallel and smoother and more
lustrous than uncombed types. Carded and combed sliver is then spun.
CARDING
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4.1.4 DRAWING
In this company, there are four drawing machine. This machine is the third stage of
process which helps to process silver again and the silver becomes very thinner.
DRAWING
4.1.5 SIMPLEX
There are three simplex machines. It is the fourth stage; the fourth stage helps of
changing roving silver. These roving will be bobbin.
Simplex in yarn manufacturing system, simplex frame is situated after the comber.
The sliver which is produced from the comber that is thicker and it is not suitable to feed
into the ring frame directly to produce yarn. For this reason, drawn sliver is treated before
entering into the ring frame.
SIMPLEX
4.1.6 SPINNING
The process of producing yarns from the extracted fibres is called spinning. In this
process: The strands of cotton fibres are twisted together to form yarn. The yarn is placed on
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the rings of the spinning frame and is allowed to pass through several sets of rollers, which
are rotating at a successively higher speed.
In this company there are 15 spinning frame. This machine is in the fifth stage of
processing. Where yarn is in the form of cops, this machine processes the roving in to yarn.
SPINNING
In this company there are one cone winding machine. This machine is in the final
stage yarn manufacturing. It makes the cops into a cone form. We cannot sell the cops to
customers. So this machine makes the financial goods. These cones are packed in the bags
for sales.
The winding is the process of creating large yarn packages called “cone” from a
number of small yarn packages (ring cops) in order to make use of yarn in subsequent
machinery. The Winding process not only make bigger yarn packeges, it also corrects
spinning faults like neps, hairiness, and waxes.
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CONE WINDING
Finance department is the important section in the mill because it is said to be brain of
every business organisation. There major roles are:
Ensure that there are adequate funds available to acquire the resources needed to
help the organisation achieve its objective.
Ensures costs are controlled.
Ensures adequate cash flow.
Establish and control profitability levels.
The main activities of finance department are the worming capital management,
preparation of fund flow statement, cash flow statement. Profit and loss balance sheet is
included in activities of finance departments.
All matters pertaining to the board is also in the preview of finance department the
proceeds from the receivables and sales are fully managed by fiance department most of the
activities carried out by finance department are pertaining to short term and long term
requirements of the operation closing of purchase bills, maintaining the account of
contractors, sub contractors, income tax deduction from salary, discrepancy relating to deal
with financial transactions, import and export are the function of the financial department.
INVENTORY VALUATION
Finished goods are valued at cost or net realisable value whichever is less. Stock of
raw materials cotton and fuel stores and spares are valued at weighted average cost. Work in
progress is valued at cost.
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DEFERRED TAX
Deferred tax resulting from timing difference between the books and tax profit is
accounted at current rate of tax.
VARIOUS BOOKS
The accounts officer maintains the accounts of the company, to ascertain the
financial position of the company. Various kinds of booths are maintained they include:
Sales ledger
General ledger
Cash book
Purchase ledger
Bank book
1. SALES LEDGER
The goods sold on credit are entered. The accounts of each customers individually
debited in this ledger. Once in every month sales ledger is balanced. A list of sundry debtor
analysis is taken to keep position of such debtors and to have followed up.
2. GENERAL LEDGER
All accounts other than debtors and creditors accounts like capital, drawings,
income, expenditure and properties are recorded in it.
3. CASH BOOK
All the cash dealings are entered in cash. The main object of the cash book is to keep
record of all cash transactions along with cash received and cash payment made on day to
day basis.
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4. PURCHASE LEDGER
This ledger is used for the purpose of recording all the goods purchased on credit.
The account of each person supplying the goods individually credited in the ledger. A list of
sundry creditors is prepared at the end of every month to keep side their position, so that
necessary funds would be made available to settle the bill.
5. BANK BOOK
Mostly all business concerns carry out their business transactions routed through the
bank so that their work can be minimised. Further, by giving standing instructions to their
bankers, the bankers made payment to the company’s creditors (i.e.) suppliers.
The Store department gets the spares accordingly when needed for example:
Bearing : SKF
The stores materials are issued to the respective heads/workers after receipt of the
“Indent” with the help of proper authorisation.
The sales department will seek to make sure that the company has marketing focus
in everything that it does. It will work very closely with production to make sure that new
and existing product development is tied in closely with the needs and expectations of
customers.
The main aim of sales department is to market the products in a well versed manner.
Functions undergone by the sales department are;
FUNCTIONS:
The agents helps the company to market their product in foreign countries.
They find the market through their agents.
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Sales are made based on the orders received.
Company gives their agent offers.
The agent acts as a indirect sales rely representative.
The exports are done according to procedures laid by the central government.
The success of any business concern resides on the performance of sales department.
Sales department plays a vital role in achieving the company’s objective i.e. to earn huge
profit, reduce cost of production by having more sales. Sales may be raised by adopting
suitable promotion strategy.
MARKETING DEPARTMENT
A marketing department promotes your business and drives sales of its products or
services. It provides the necessary research to identify your target customers and other
audiences. Depending on the company’s hierarchical organization, a marketing director,
manager or vice president of marketing might be at the helm. In some businesses, a vice
president of sales and marketing oversees both the marketing and sales departments with a
strong manager leading each department.
DEPARTMENT AGENT
The company appoints its own department agent as and when required. The mill
dispatch goods according to the demand raised by the department agents. The agents will
receive the goods and their turnover depends upon the efficiency of the agent.
The department agent issues invoice at the time of sales. He has to remit the money
within seven days, and then from the eight day onwards the company at the rate of 26% will
levy penal interest. The department agent receives commission of 1.5 percent on ex-mail
value as consultation for his service rendered.
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CONSIGNMENT SALES
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CHAPTER V
KNOWLEDGE GAINED
During an internship, I learn a lot of skill and strengths and weaknesses. The
internship training has left me with industrial behavior and knowledge.
Blow room operations: The blow room machinery performs the function of opening
pressed bales of cotton and cleaning the cotton of impurities. Trash and foreign matter is
extracted from the cotton with the least amount of lint loss. Blow room line consists of
opening, cleaning, mixing and lap making machine. In order to produce uniform quality of
yarn and also to reduce the cotton cost of yarn while achieving the desired level quality,
mixing of two or more types of cotton is carried out in the blow room. The loose cotton
passed through the blow room machinery is converted into regular sheets called laps.
Carding: The material received from Blow room is processed on the Carding machines
which produce a thin sheet of uniform thickness that is then condensed to form a thick,
continuous, untwisted strand called sliver. This process also removes the remaining
impurities from the cotton.
Drawing: The fibers in the carded sliver are placed in a haphazard fashion and lack
uniformity. The carded slivers are processed on the drawing frame; they are made uniform
in thickness by the doubling process. The fibers get drawn parallel to the axis of the sliver
by the drafting process.
Roving: Slivers are to be thinned out to the level required for the yarn to be spun. This
process of attenuating the slivers is done in several steps on Speed Frames. While
converting slivers into roving, a small amount of twist is also inserted so that the roving can
withstand the winding and the unwinding operations.
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Spinning: The roving bobbins are taken to the ring frames where it is drafted (extended) to
the extent of desired level (i.e. count). The spindle along with the ring traveller mounted on
a ring imparts the requisite amount of twist into the yarn. The yarn is wound on bobbins and
taken to post spinning operations.
Winding: The yarn is wound over paper cones to make final packages after passing through
electronic yarn cleaners for removal of any defects. The ends are ‘spliced’ to produce knot-
less yarns.
Finishing: Further operations on the yarn, such as Bleaching, Dyeing, and Packaging will
depend on the intended usage of the yarn.
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CHAPTER VI
CONCLUSION
The training in various departments has helped me to acquire practical knowledge in
various aspects of the spinning mills administration. They also helped me understand the
various problems that normally arrive in various departments and the strategies to solve the
problem.
They are using necessary machines for producing the product and they also adopting
modern technology for improving their standard into an international one.
The training has provided the practical exposure on these areas besides the practical
knowledge gained than regular classroom lectures. The experience is memorable and it
gives lot of self-confidence to take similar job in any company and doing the same
independently to the entire satisfaction of the corporate society.
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