Gardan Silk Main

Garden Silk Mill Pvt. Ltd.
GARDEN SILK MILLS

:: Developed By :: Mangukiya Bharat :: Submitted To ::
Prof. V.B. Shah Institute of Management & R.V. Patel of Commerce College
[1]
ACKNOWLEDGEMENT
I am Bharat Mangukiya the student of Prof. V.B. Shah Institute of Management College introduce my report on our summer industrial training. I make a choice the Garden Silk Mills Ltd. because of good reputation & good sound will in the market. I have very good memories with Garden Silk Mills Ltd. I spent two months as part of syllabus of S.Y.B.B.A. I achieve a lot of during the industrial training it was great experience that is never forget in my life and it is also helpful in my future. I thanks to the management of company who give me excellent guidance for preparing this report. I thanks to the South Gujarat University for making such type of syllabus in B.B.A. programme in which students gets practical knowledge about industries. I want to special thank my guide Mr. Mahesh Trivedi I had given me immense pleasure to associate self with though provoking and absorbing. I am thankful to those who have directly & indirectly co-operated to finish this venture.
Place: Surat G. Date:
Mangukiya Bharat
[2]
DECLARATION
I undersigned there by declare that the project report on Garden Silk Mill prepared & submitted to Prof. V.B.Shah Institute of Management College, Amroli towards the partial fulfiiment of BBA. This is my own work & the report prepared there in is based on the knowledge & the work done by me in the company during the project work. I further declare that it is the result of my findings & research in the subject & is original in nature. It is not submitted either in part or in whole to any other institute or university for any degree.
Mangukiya Bharat G.
[3]
Index
Particulars
COMPANY DETAILS
CHAPTER NO 1 1.1 INTRODUCTION OF COMPANY 1.2 HISTORY & DEVELOPMENT OF THE COMPANY 1.3 ACTIVITIES OF THE COMPANY 1.4 GENERAL INFORMATION OF THE COMPANY Page No.
CHAPTER NO 2 FINANCIAL DEPARTMENT

2.1 INTRODUCTION OF FINANCIAL STATEMENT 2.2 MEANING OF FINANCIAL STATEMENT 2.3 TRAITS OF FINANCIAL STATEMENT 2.4 USES OF FINANCIAL STATEMENT 2.5 LIMITATION OF FINANCIAL STATEMENT
PRODUCTION DEPARTMENT CHAPTER NO 3

3.1 ORGANIZATION STRUCTURE & ALL ACTIVITIES 3.2 VISIT TO THE MANUFACTURING UNIT AND ENGINEERING UNIT 3.3 TYPES OF PRODUCTS AND THEIR SPECIFICATION 3.4 TYPES OF RAW-MATERIAL USED 3.5 BRIEF EXPLANATION OF PRODUCTION PROCESS & ITS FLOW CHART 3.6 MACHINE OPERATOR & COMMENT ON RELATED MICRO MOTION ASPECTS 3.7 TYPES OF MATERIAL HANDLING EQUIPMENT USED 3.8 INVENTORY MANAGEMENT FOR RAW-MATERIAL & FINISHING MATERIAL 3.9 CO-ORDINATION BETWEEN
MARKETING DEPARTMENT
[4]
[5]
1.1 Introduction of the Company:Garden vareli group of companies, one of the leading industrial groups in India, plays a leading role in the field of fashion fabrics. With annual sales exceeding U.S. $ 90 million, they sell their products under a single banner of quality Garden. Garden Silk Mills Ltd. is one of the leading & oldest manufactures of synthetic in India. Garden Silk Mills Ltd. has been exporting their products to European markets since late 1970s. The company has made vertical & horizontal integration from its establishment. The company has three production plants : One at Village Vareli, Near Kadodara Junction, N.H.No.8, The Second at Village Jolva, Near Bardoli, and another at Garden Mills Complex, Sahara Gate, Surat. Today the company has total 293 its own retail and authorized outlets all over india. The company has achieved a very good brand name in Indian & International market of sarees & dress materials.The company has achieved sales during financial year 2004-2005 of Rs.65,450.04 lacs & Rs.45,750.23 lacs during 2005-2006.
[6]
1.2 History & Development of the Company:The origins of the business go back to 1920 when Mr.Amichand shah installed the first hattersley looms in surat. Since 1920 the company expanded not only by increasing the production capacity and workforce of the business but also by pioneering new material and processes. The present chairman and managing director of Garden Silk Mills Ltd. Mr.Praful Shah is the youngest son of Mr. Amichand Shah. Mr.Praful Shah taken qualification in USA in 1965 after which he joined the company, up to that date Garden Silk Mills Ltd. had activities of the company to include processing cloth by introducing dying, printing and finishing processes. As a result of this, the company was able to supply finished textiles for the first time. In the 1970s, the company recruited fine arts graduates from leading institutions. An art studio was set up. The company started introducing its own design and supplying these design to the market. Prior to this the design produced had been a function of customer demand and from this manufacturer. This was the first step in building a vertically integrated synthetic textile manufacturer and designer.
[7]
This move in the early 1970s coincided with the opening of the first retail shop in surat. The extension of the policy of vertical integration into the retailing sector had advantages of uniform pricing, close market monitoring, improving communication between manufacturer and consumer, and above all exerting downward pressure on the final selling price. The dedicated retail network now extends to some 293 authorized outlets.
In the late 1970s, the company started exporting its product to European markets, given the size of the domestic market, the proportion of products that are exported remains low at approximately two percent. The company is in the process of further developing markets in Africa, Central and Astern Asia. In 1980, the company developed a new site, Vareli, some 12 kilometers away from surat. This has become the main manufacturing plant and investment of more than Rs.2.0 billion has been made. Most of this expenditure has been targeted at the expansion and modernization of plant and equipment, particularly in the weaving and yarn preparatory sections. As a result, the company today has one of the most modern and sophisticated textile plants in India. The Company was first to setup a Polyester filaments yarn project in South Gujarat. The project is capable of producing multi-filament & micro- filament yarn having a capacity of 5000 tones per annum in collaboration with non-vale leasing ago old Switzerland. This project has a special significance for the company, as polyester filament yarn is the basic raw material for the product manufactured by the company.The company was also first in producing of two for one twister in India.
[8]
The company's production facilities boast of one of India's most sophisticated textile plants at vareli, surat (western india). Its weaving plant comprising nissan and tsudakoma waterjet looms - the highest number of waterjet looms under one roof in india - and rapier looms, automatic shuttle change looms etc, high-tech yarn preparatory machines viz, ziro-twist-sizing, draw-warping, texturising and twisting machines, have a capacity of over 42 lac meters/month of greige fabric. The plant has an ISO 9002 certification by bvqi. The company also markets high quality dyed and printed fabrics which it gets manufactured from associated firms.
1.3Activities of The Company:The company is primarily engaged in the manufacture of synthetic textile, sarees and dress materials mainly made of polyester yarns and certain intermediate products. Garden silk mills ltd. has been, and continues to be, the initiator of the majority of new textile varieties woven and processed in surat, is at present, the consumer of approximately 50 percent of polyester yarn in india. The company believes that design is a key factor in its market and used to produce some 200 different printed design each month. The companys lead in different and improved fabric construction and the emphasis it places on design together with its modern and efficient plant is key to its future success. The company operates in a highly fragmented market where no individual manufacturer has a material market share. It is also the leading integrated textile manufacturer house, which undertakes all processes from yarn manufacture to the retailing of dress materials and sarees.
[9]
The company, and its wholly owned subsidiary, Garden finance are also engaged in providing to the indian corporate sector trade and asset finance including the discounting of bills of exchange.
1.4 General information of The Company:Board of Director:Mr.Praful A. Shah Mrs.Shilpa P.Shah Mr.S.J. Bhesania Mr.Harshad F. Shah Mr.Sanjay S. Shah Mr.Alok P. Shah Mr.Rajen P. Shah Mr.J.P.shah Mr.Yatish Parekh Mr.Arunchandra N. Jariwala Mr.Sunil S. Sheth Mrs.Smita J.Shah Mr.Madanlal U.Lankapati Chairman & M.D. Executive Director Executive Director Executive Director Executive Director Executive Director
[10]
Mr.Suhail P.Shah Mr.Y.N.Rammurthy Company secretary:Kamlesh B. Vyas Auditors:Messrs Natvarlal Vepari & Co. Charted Accountants,Surat. Nominee of LIC of India
Bankers:Bank of Baroda Allahabad Bank State Bank of saurashtra Bank of india State Bank of India Corporation Bank Union Bank of India Registered Office:Garden Mills Compound, Sahara Gate, Surat-395010. Corporate office:Manek Mahal,
[11]
90, Veer Nariman Road, Mumbai-400020. Sr. No 1 2 3 4 5 6 7 8 9 No. of shares hold 20596819 15050 1556486 62914 1443422 2571140 11359530 614525 500 70174 382902560 Holding strength 53.79 0.04 4.06 0.17 3.77 6.72 29.67 1.60 0.00 0.18 100.00
Category Promoters Mutual funds & UTIi Bank Financial Ins. & Insurance Co. FIIs Private Bodies Corporate NRIs/OCBs Indian Public GDR Others:Trust Clearing Members Total
Plants:i) ii) iii) Garden Mills Compound, Sahara Gate, Surat Village Vareli, Tal.Palsana, Dist.Surat Village Jolva, Tal.Palsana, Dist.Surat
Registrar & Transfer Agent:MCS Limited, Neelam Apartment, 88, Sampatrao Colony,Alkapuri, Baroda 390005.
Categories of Shareholders
[12]
Chairman & Managing Director
Financ e Direct or
General Manager Marketing
Import & Export Director
Producti on Director
Head of the Departmen Organization t Structure Staff
[13]
[14]
CONCEPT OF FINANCIAL STATEMENT

2.1 INTRODUCTION OF FINANCIAL STATEMENT:The major steps associated with accounting work are four as presented below.
[15]
Analysis of each and every transaction to ascertain the amount involved and also the account to be detailed and credited. Journalisation, posting to ledger account and the preparation of trial balance Preparation of financial statement Analysis and interpretation of financial statements
2.2 MEANING:Financial statement are interpreted as those statement which show both the performance and the financial position. They include balance sheet, income statement, fund statement, or any supporting statements or other presentation of financial data derived from accounting records. In brief it includes the figures in summary form of various assets held by the company and also its liabilities towards outsides including the owner at the end of the last day of an accounting year. Income statement or P & L account is a statement which shows in summary form, the revenue and expenses of a business entity for an accounting year. It shows the sales revenue, cost of sales, gross profit, operating expenses, operating profit, non-trading income and expenses, net income or loss, tax liabilities, etc.
In brief Profit & Loss Account presents information about the result or outcome of business operation during an accounting year by matching expenses incurred during an accounting year against the revenue earned in the last year.
[16]
These two basic financial statements are supported by a number of schedules annexure suplemantary statements, etc. Supplementing the data contained in the balance sheet and the income statement. Therefore all these in addition to P&L account and Balance Sheet fall within the scope of financial statement.
2.3 TRAITS OF FINANCIAL STATEMENTS:Its very well known that the financial statement basically refer to balance sheet and P&L account or income statement of course this two basic statement are supported by number of schedules. The figures includes in the financial statement are influenced by three important factors. They are 1. 2. 3. Recorded facts Generally accepted accounting principles Personal judgements
1.Recorded Facts :-
[17]
It may be remembered here that the preparation of financial statement is made on the basis of trail balance which in turn is prepared on the basic of balance in various ledger account. As is known ledger account are prepared by posting journal entries recorded facts here denote the figures recorded in journal books, ledger account and trail balance. The financial statement are prepared on the basis of entries in these book of account any figure wchih does not find place in the book of account. Any figure which does not find place in the book of account is usually not taken to the financial statement.
2.Generally Accepted Accounting Principles (GAAPs) :GAAPs are in the form of guidelines or rules which are to be used as standards for recording business transaction in the books of account and their fair presentation in the financial statement. Because the financial statement have to be prepared in conformity with the gaps. These includes principles, concepts, conventions and assumption.
Consequently the figures in the financial statement are influenced by the GAAPs.
3.Personal judgements :For a few number of important accounting problems accounts find a number of alternative solution each being considered by the completent authorities as based on sound principles. So that the clear financial statement reflects a combination of recorded facts and figures. Gaaps and personal judgement and these three influence the financial data substantially.Therefore whenever we deal with financial statement. They are to dealts in the light of these three factors.
[18]
2.4 USE OF FINANCIAL STATEMENT:The following are the important objective or urge of financial statements.
1.Useful Information :To provide useful information which can gainfully be utilized to predict, compare and evaluate the earning capability.
2.Sufficient Information :To provide sufficient information which can be utilized by both the internal and the external parties to predict, compare and evaluate the financial soundness of the entity. They should also enables the parties to predict, compare and evaluate the potential funds flow in terms of both amount, time and associated uncertainty.
3.Required Information :To provide required information to enable the users of financial statement to evaluate the ability or performance of managerial personnel to utilize the companys resources for the purpose of accomplishes the primary corporate urge.
4.Primary Information :To provide information primarily to those who have limited authority or resources to obtain the required information.
[19]
2.5 LIMITATION OF FINANCIAL STATEMENT:1.Fulfillment of statutory requirements :The financial statement which are normally prepared in an absolute manner dont communicate much about the profitability, solvency, stability, liquidity, etc. Of the undertaking to the users of the statements. Because the statement include the figures which dont speak on their own. Due to this reason, the financial statement are not assisting either the external parties or the internal parties to take proper decisions through the very purpose of preparing and presenting these statement is to assist then in this task.
2. Historical data :Financial statement comprises of only the effects on the items of income statement or balance sheet or both. In brief of variegated types of transaction business. Financial and investment that have taken place during an accounting year.
3.Interim reports :As is known the financial statement are prepared annually. Therefore they are not capable of furnishing either the comprehensive or the correct information about the profit, loss, assets, liability, etc. Because actual profit computed only after winding up of business.
4.Emphasis on only quantitative information :Financial statement records dissimilar transaction which can be expressed in terms of money. Of course, these monetary records or statement are often supplemented by other information. However, the financial statement exclude the
[20]
non-monetary facts or attributes which cant accurately be expressed in terms of monetary unit when if they are very important.
5.Generally Accepted Accounting Principles :Since the preparation of financial statement is governed by the gaaps and since there are number of diverse accounting solution to each of a few important problems, financial statement do not depict the reality.
6.Personal Judgement :Accounting provides a number of avenues to the personal in charge of preparation of financial statement to influence the figures.
7. Opportunities for Manipulation :One can find a number of opportunity for manipulated by the management wherin the financial statement can be prepared in such a way which will suit the wins of management. It is because of the presence or availability of diverse accounting solution to each of few major items of financial statement. To analyse and interpret the data in the financial statement for analyse the financial statement any one or more method used 1. Comparative financial statement 2. Common size measurement 3. Ratio analysis
[21]
1.Comparative Financial Statement :Comparative financial statement are prepared by providing column not only for the year just ended but also for the years preceding the year just ended. Besides columns are also normally provided for changes over the year both absolute and relative with the help of these statements. Its possible to find out not only the balance of account as on different periods but also the extent of their increase or decrease between these dates. The changes one can observe indifferent items represent the outcome of operations interaction amongst assets, liabilities and capital. The figures in the comparative statement may conveniently be used for identifying the direction of changes and also to study the trends in different indicater of performance of an organization. On this basis the management can easily identify the areas in which the organization has improved its performance and the areas in which it has failed. The reasons for the failure can also be identified. Further the reasons for the failure can be classified into controllable and non-controllable. Merit :1. These statements indicate trends in sales, cost of production, profit, etc. Helping the analyst to evaluate the performance, efficiency and financial condition of the undertaking. 2. Comparative statement can also be used to compare the position of the firm with the average performance of the industry or with other firm. Demerit :-
[22]
1. Inter firm comparision may be misleading in the firms are not of the same age and size follow different accountng policies in relation to department, valuation of stock, etc. And do not cater to the same market. 2. Inter period comparision will also be misleading if the period has withnessed frequent change in accounting policies.
Comparative Profit & Loss A/c for the year ended 30th June, 2005-2006
(Rs. In Lacs)
[23]
Particulars Income Sales & Job Charges Less : Excise Duty On Sales Income From Financial Operation Other Income Total Expenditure Consumption of RM (Increase)/Decrease In Stock Purchases Excise Duty Mfg. & Other Expenses Total Profit before Financial Charges, Dep. &Tax Less: Financial Charges (Net) Profit before Dep. & Tax Less: Depreciation Profit before Tax Less :Provision for Current Tax Wealth Tax Deferred Tax Fringe Benefit Tax Profit after Tax Add: Balance B/F Balance for Appropriation Appropriation Proposed Dividend Tax on Proposed Dividend Transfer to General Reserve Balance Carried to Balance Sheet Total
2005-06 107923.89 12437.94 95485.95 64.00 469.06 96019.01 62771.75 1219.76 1299.29 160.51 20933.27 83945.06 12073.95 4020.11 8053.84 4866.13 3187.71 65.00 10.00 842.26 60.00 2210.45 2882.91 5093.36 574.36 80.56 120.00 4318.44 5093.36
2004-05 75429.66 11905.85 63523.81 141.36 466.74 64131.91 39388.18 1475.99 4384.02 283.25 12947.94 57912.88 6219.03 1625.72 4593.31 3617.11 976.20 103.60 0.00 21.36 15.00 878.96 2708.87 3587.83 574.36 80.56 50.00 2882.91 3587.83
[24]
Comparative Balance Sheet as on 30th June 2002 & 2001

(Rs. In Lacs)
[25]
Particulars SOURCES OF FUND Shareholders Fund Share Capital Reserves & Surplus Loan Funds Secured Loan Unsecured Loan Deferred Tax Liability Total APPLICATION OF FUND 1. Fixed Assets Gross Block Less: Depreciation Net Block Capital WIP 2. Investment 3. Current Assets, Loans & Adv. Inventories Sundry Debtors Cash & Bank Balance Loan & Advances Less: Current Liabilities Provision Net Current Assets 4. Miscellaneous Expenditure Total
2005-06 3829.06 30414.31 34243.37 49321.99 14585.87 63907.86 5212.72 103363.95 106157.86 33648.12 72509.74 2496.08 75005.82 7286.35 9708.08 4844.93 2844.30 10329.64 27726.65 5426.15 1398.75 6824.90 20902.05 169.73 103363.95
2004-05 3829.06 28858.78 32687.84 48496.87 10672.30 59169.17 4370.46 96227.47 71929.63 28865.62 43064.01 28791.75 71855.76 7473.02 6585.39 2963.00 3136.44 9914.39 22599.22 4627.25 1302.26 5929.51 16669.71 228.98 96227.47
[26]
2.Common size measurement :It is known fact that the amount of capital liabilities, sales turnover, etc. Vary from one period to another and from one entity to onther when they differ. It is not advisable to comment on the basis of performance.
[27]
Financial statement when read with absolute figures are not easily understandable. Sometimes they are even misleading. It is therefore necessary that figures reported in these statement should be converted in to percentage to some common base. In p&l account sales figure is assumed to be equal to 100 and all other figures are expressed as percentage of sales. Similarly in balance sheet the total of assets or liabilities is taken as 100 and all the figures are expressed as percentage of the total. This type of analyses is known as vertical analysis. This is a static relationship existing at a particular date. The statement so prepared are known as comman size statement.
[28]
Common size Profit &Loss A/c for year ending 30th June,
Particulars SOURCES OF FUND Particulars 1. Shareholder Fund Income Share Capital Sales & Job Charges Reserve & Surplus Less : Excise Duty Secured Loan Income From Financial Operation Unsecured Loan Other Income Total Total Application of Fund Expenditure 1. Fixed Assets Consumption of RM 2. Investment (Increase)/Decrease In Stock 3. Current Assets Purchases Less: Liabilities Mfg.Current & Other Expenses Profit before Financial Charges, 4. Deferred Tax Liability Depreciation & Tax 5. Misleading Expenses Total Total 2005-06(%) 2005-06(%) 8.77 103.21 69.24 4.48 98.73 21.79 0.20 0.82 100.00 0.45 100.00 56.18 55.90 13.20 0.64 37.78 8.58 7.28 24.47 10.41 0.00 0.12 100.00 100.00 2004-05(%) 2004-05(%) 8.59 101.60 59.78 4.00 97.61 20.94 10.69 0.76 100.00 1.63 100.00 63.57 53.11 9.13 (0.96) 44.13 6.96 9.18 25.25 15.63 (7.87) 0.22 100.00 100.00
2005-2006
Common size Balance Sheet as on 30th June, 2005-2006
[29]
Interpretation :The current assets are increase as comapre to previous year but investment is decrease from 13.20 to 9.13. The secured loand is decrease as comapre to previous year but unsecured loan is increase i.e. from 0.20 to 10.69 Income from financial operation are decreased but other income are increased i.e from 0.45 to 1.63 Compnays reserve and surplus is decreased as compare to previous year i.e. 69.24 to 59.78.
3. Ratio Analysis:A ratio refers to the establishements of relationship between any two interrelated variables. Ratio analysis stands for the process of determining and presenting the relationship of items and groups of items in the financial statements.
Importance of Ratio Analysis :-
[30]
1.Useful in fiancial position analysis :Accounting ratios reveal the financial position of the concern. This helps the banks, insurance companies and other financial institutions in lending and making investment decisions.
2.Useful in simplifying accounting figures :Accounting ratios simplify, summarise and systematise the accounting figures in order to make them more understable and in lucid form. They highlight the interrelationship which exists between various segment of the business as expressed by accounting statements.
3.Useful in assessing the operational efficiency :Accounting ratios help to have an idea of the working of a concern. The efficiency of the firm becomes evident when analysis is based on accounting ratios. They diagnose the financial health by evaluating liquidity.
4.Useful in forecasting purposes :If accounting ratios are calculated for a number of years, then a trend is established. This trend helps in setting up future plans and forecasting .
5.Useful in locating the weak spots of the buz :Accounting ratios are of great assistance in locating the weak spots in the business even though the overall performance may be efficient. Weakness in financial structure due to incorrect policies in the past or present are revealed through accounting ratios.
Limitation of Accounting Ratios:1.False results :Accounting ratios can be correct only if the data are correct. Sometimes, the information given in the financial statements is affected by showing position better than what actually.
[31]
2.No idea of probable happenings in future :Ratios are an attempt to make an analysis of the past financial statements, so they are historical documents. Now-a-days keeping in view the complexities of the business, it is importanat to have an idea of the probable happening in future.
3.Variation in accounting methods :The two firms results are comparable with the help of accounting ratios only if they follow the same accounting methods. Comparision will become difficult if the two concern follow the different method of providing depreciation or valuing stock.
4.Price level changes :Changes in price levels make comparision for various years difficult. Because of rising prices fixed assets being shown at cost and not at market price.
5.No common standards :It is very difficult to lay down a common standard for comparision because circumstances differ from concern to concern and the nature of each industry is different.
6.Different meaning assign to the same term :Different firms, inorder to calculate ratio may assign different meanings. This may effect the calculation of ratio in different firms and such ratio when used for comaparision may lead to wrong coclusion.
7.Ignores qualification factors :Accounting ratios are tools of quantitative analysis only. But sometimes qualification factors may surmount the quantitative aspects. The calculation derived from the ratio analysis under such circumstances may get distorted.
Classification of Ratio:-
[32]
Classification of Ratio
Profit & Loss A/c Ratio
Balance Sheet Ratio
Inter-Statement Ratio
1. Gross Profit Ratio 2. Net Profit Ratio 3. Operating Ratio 1. 4. Current Stock Ratio 2. Liquid Ratio Turnover Ratio 3. Debt Equity Ratio 4. Propritory Ratio 5. Capital Gearing Ratio 1. Return on Investment Ratio 2. Return on Propritory Fund Ratio 3. Net Profit to Total Assets Ratio 4. Creditors Turn Over Ratio 5. Debtor Turnover Ratio
A. Profit & Loss A/c Ratio

1.Gross Profit Ratio :-
[33]
This ratio establishes the relationship between gross profit on sales and net sales i terms of percentage indicating the percentage of gross profit earned on sales. Gross Profit Gross Profit Ratio = ------------------- * 100 Net Sales Years 2001-02 2002-03 2003-04 2004-05 2005-06 Gross profit (a) 5727.85 3508.31 3351.06 4281.98 5648.76 Net sales (b) 56871.04 44044.16 41347.01 43459.79 46167.17 Ratio (%) (a/b) 10.07 7.97 8.10 9.85 14.40
Gross Profit Ratio 16 14 12 P 10 e 8 r . 6 4 2 0 2001-02 2002-03 2003-04 Year 2004-05 2005-06 10.07 7.97 8.1 9.85 14.4
Interpretation :The gross profit of the company is incresing day by day. It is increase to 14.40% in 2005-06 as comapre to 2004-05 i.e 9.85%.
2.Net Profit Ratio :-
[34]
This ratio establishes the relationship between the amount of net profit or net income and the amount of sales revenue. Net Profit Net Profit Ratio = ------------------- * 100 Net Sales Years 2001-02 2002-03 2003-04 2004-05 2005-06 Net profit (a) 1664.11 817.40 598.50 2123.84 2949.51 Net sales (b) 58771.04 46144.16 39947.01 44359.79 45467.17 Ratio (%) (a/b) 2.83 1.77 1.50 4.79 6.49
Net Profit Ratio
P e r .
7 6 5 4 3 2 1 0
6.49 4.79 2.83 1.77 1.5
2001-02
2002-03
2003-04
Year
2004-05
2005-06
Interpretation :-
[35]
The net profit of the company is incresing day by day. In 2003-04 it was decrease to 1.50% but company take corrective action so that it continuously increase from that time.
3.Operating Ratio :This ratio takes into account the aggrerate of manufacturing cost of goods sold and other operating expenses on the one hand, and the net sales revenue on the other. Cost of Sales Operating Ratio = ------------------- * 100 Sales Revenue Years 2001-02 2002-03 2003-04 2004-05 2005-06 Cost of sales(a) 53698.73 41756.32 33218.51 36249.68 34277.06 Sales revenue (b) 59071.04 45978.16 39347.01 43459.79 46167.17 Ratio (%) (a/b) 90.91 90.82 84.42 83.41 74.25
[36]
Garden Silk Mill Pvt. Ltd. Operating Ratio 100 P e r . 80 60 40 20 0 2001-02 2002-03 2003-04 Year 2004-05 2005-06 90.91 90.82 84.42 83.41 74.25
4.Stock Turnover Ratio :Inventory turnover ratio which is also called stock turnover ratio or stock velocity establishes the relationship between the cost of goods sold during a given period and the average of the costs of openaing and closing stocks. Cost of Goods Sold Stock Turnover Ratio = -------------------------Average Inventory
[37]
Years 2001-02 2002-03 2003-04 2004-05 2005-06
Cost of Goods Sold (a) 54311.84 41287.08 37128.80 41525.54 36506.16
Avg. Inventory (b) 3431.33 3486.77 3107.66 2491.48 2673.68
Ratio (a/b) 15.83 11.84 11.95 16.67 13.65
Stock Turnover Ratio
20 T i 15 m 10 e s 5 . 0 15.83 11.84 11.95
16.67 13.65
2001-02
2002-03
2003-04 Year
2004-05
2005-06
B. Balance Sheet Ratio

1.Current Ratio :The ability of a company to meet its short-term commitment is normally assessed by comparing current assets with current liabilities. The current ratio establishes the relationship between the current assets and the current liabilities. The ideal ratio is 2:1. Current Assets Current Ratio = ------------------------Current Liabilities
[38]
Years Current Assets (a) Current Liabilities (b) 2001-02 15872.35 3924.37 2002-03 15316.44 3702.93 2003-04 13526.96 4036.77 2004-05 10506.54 3198.01 2005-06 13836.64 4012.50
Ratio (a/b) 4.04 4.14 3.35 3.29 3.45
Current Ratio
5
T i m e s
4 3 2 1 0
4.04
4.14 3.35 3.29 3.45
2001-02
2002-03
2003-04
Year
2004-05
2005-06
Interpretation: In last five years the current ratio is between 3.29 to 4.14 which was very good for the company. But in the last year it was 3.45 while it was highest in the 2002-03 i.e. 4.14 so compnay should take corrective action for increase the ratio.
2.Liquidity Ratio :-
[39]
A liquidity ratio is also known as acid-test ratio, therefore, used as a complementary ratio to the current ratio. The ratio is concerned with the establishment of relaionship between the liquid assets and the liquid liabilities. The ideal ratio is 1:1 Liquidity Assets Liquidity Ratio = -----------------------Curent Liabilities Years 2001-02 2002-03 2003-04 2004-05 2005-06 Liquidity Ratio(a) 8159.57 7455.46 7863.99 4673.20 7881.12 Current Liabilities(b) 3829.37 3630.93 4008.77 3178.01 4093.50 Ratio(a/b) 2.13 2.05 1.96 1.47 1.93
Liquidity Ratio
2.5 2 T i 1.5 m 1 e s 0.5 0
2.13
2.05
1.96 1.47
1.93
2001-02
2002-03
2003-04 Year
2004-05
2005-06
[40]
Interpretation : In last five years the liquidity ratio is between 1.47 to 2.13 which was higher than 1:1 and it is satisfactory. But in the last year it was 1.93 while it was highest in the 2001-02 i.e. 2.13 so compnay should take corrective action for increase the ratio.
3.Debt Equity Ratio :This ratio is calculated to measure the relative proportion of outsiderss funds invested in the company. This ratio determined to ascertain the soundness of long term financial policies of that company and is also known as external-internal equity ratio. Long Term Debt Debt Equity Ratio = ------------------------Shareholder Fund Years 2001-02 2002-03 2003-04 2004-05 2005-06 Long term debt(a) 4965.11 5238.49 7417.12 8304.24 8846.48 Shareholder fund(b) 34957.49 35284.66 32682.88 34053.66 30482.55 Ratio(a/b) 0.14 0.15 0.23 0.24 0.29
[41]
Garden Silk Mill Pvt. Ltd. Debt Equity Ratio 0.3

T 0.2 i m 0.15 e 0.1 s
0.29 0.23 0.14 0.15 0.24
0.25
0.05
2001-02
2002-03
2003-04 Year
2004-05
2005-06
Interpretation : In last five years the debt equity ratio is between 0.14 to 0.29 which shows that the claim of creditors are less than that of owners but the claims of creditors is increases in last five years.
4.Propritory Ratio :This ratio shows the relationship between shareholders fund and total assets. The result clearly shows the share of owners in the total assets of the company. When the proprietary ratio is substracted from one, the resultant figure represents the share of outsiders claim on the assets of the company. Shareholder Fund Propritory Ratio = -------------------------Total Assets
Years 2001-02 2002-03 2003-04 2004-05
Shareholder fund(a) 34957.49 35284.66 32682.88 34053.66
Total assets(b) 49330.42 50676.34 46590.91 46828.82
Ratio(a/b) 0.71 0.70 0.70 0.73
[42]
2005-06
30482.55
52184.81
0.58
Propritory Ratio
0.8
T 0.6 i m 0.4 e s 0.2
0.71
0.7
0.7
0.73 0.58
2001-02
2002-03
2003-04
Year
2004-05
2005-06
Interpretation : In last five years the propritory ratio is between 0.58 to 0.73. It was almost stable during last four years but in 2005-06 it was 0.58 which shows a greater risk to creditors.
5.Capital Gearing Ratio :The term capital gearing is used to describe the relationship between fixed interest bearing securities, and the equity shareholders funds. Therefore this ratio establishes a meaningful relationship between the funds bearing fixed interest on the one hand, and the equity shareholders funds on the other. Fixed Interest Bearing Fund Capital Gearing Ratio = --------------------------------------Equity Share Capital
Years Fixed int. Fund (a) Equity capita (b) 2001-02 4965.11 3829.06 2002-03 5238.49 3829.06 2003-04 7417.12 3829.06
Ratio (a/b) 1.30 1.37 1.94
[43]
2004-05 2005-06
8304.24 8846.48
3829.06 3829.06
2.17 2.31
Capital Gearing Ratio
2.5
T i 1.5 m 1 e s
2.17 1.94 1.3 1.37
2.31
0.5
2001-02
2002-03
2003-04
Year
2004-05
2005-06
Interpretation : The capital gearing ratio is between 1.30 to 2.31 during last five years. In 2005-06 it was 2.31, the capital gearing is said to be high, this position is under capitalisation.
C.Inter-Statement Ratio
1.Return On Investment Ratio :This ratio is an indicator of the earnign capicity of the capital employed in the business. This ratio reflects the overall efficiency with which capital is used. PATI Return on Investment Ratio = ----------------------Capital Employed Years 2001-02 2002-03 2003-04 Profit after tax &interest(a) 1764.11 837.40 593.50 Capital employed(b) Ratio(a/b) 32635.36 5.41 33771.26 2.48 31193.36 1.90
[44]
2004-05 2005-06
2061.84 2926.51
31445.76 38007.83
6.56 7.70
Return On Investment Ratio
T i m e s
8 7 6 5 4 3 2 1 0
6.56 5.41
7.7
2.48
1.9
2001-02
2002-03
2003-04
Year
2004-05
2005-06
Interpretation : The return on investment is higher in last year i.e 7.70 times which is good sign for the company but it was very low in 2003-04 which is increase in couple of years.
2.Return On Propritory Fund Ratio :This is an important ratio as it shows the amount of profit available to the shareholders which determines the rate of dividend. EAT Return on Propritory Fund Ratio = -----------------------Shareholder Fund Years 2001-02 2002-03 2003-04 Earning after tax (a) 1764.11 837.40 593.50 Shareholder fund (b) 34957.49 35284.66 32682.88 Ratio (a/b) 5.05 2.37 1.82
[45]
2004-05 2005-06
2061.84 2926.51
34053.66 30482.55
6.05 9.60
Return on Propritory Fund Ratio
10 T i m e s 8 6 4 2 0 2001-02 5.05 2.37 1.82 2003-04 Year 2004-05 6.05
9.6
2002-03
2005-06
Interpretation : The Return On Propritory Fund Ratio of last five years shows that sharholders gate 9.60 profit which is very good for companys image. But it was very low in 2003-04 i.e. 1.82.
3.Net Profit to Total Assets Ratio :This ratio establishes the relationship between the net profit and otal assets. This ratio tries to findout how efficient the company was in utilizing the funds to generate or earn profit. Net profit Net Profit to Total Assets Ratio = -----------------Total assets Years Net profit (a) Total assets (b) Ratio (a/b)
[46]
2001-02 2002-03 2003-04 2004-05 2005-06
1764.11 837.40 593.50 2061.84 2926.51
49330.42 50676.34 46590.91 46828.82 52184.81
0.04 0.02 0.01 0.04 0.06
Net Profit to Total Assets Ratio 0.06 0.05

T 0.04 i m 0.03 e 0.02 s
0.06 0.04 0.04
0.02 0.01
0.01 0 2001-02 2002-03
2003-04
Year
2004-05
2005-06
4.Creditors Turnover Ratio :This ratio, also known as payable turnover ratio establishes the relationship between the net credit purchases and the average trade creditors. Creditors Creditors Turnover Ratio = ------------------------- * 365 Net Credit Purchase Years 2001-02 2002-03 Creditors (a) 2412.40 2322.75 Credit purchase (b) 36331.15 26805.11 Ratio (a/b) 24.24 31.63
[47]
2003-04 2004-05 2005-06
2631.58 1696.07 2575.36
19599.14 24158.08 23612.85
13.43 7.02 10.91
Creditors Turnover Ratio 35 30 T 25

i 20 m e 15 s 10
31.63 24.24 13.43 7.02 10.91
5 0 2001-02 2002-03 2003-04

Year
2004-05
2005-06
Interpretation : Creditor turnover ratio was 10.91 times in 2005-06 which shows that the disbursment of money is faster in the company. It was very slow in 2001-02 when ratio was 24.24 times.
5.Debtors turnover ratio :Debtor turnover ratio, also known as receivables turnover ratio or debtors velocity establishes the relationship between the net credit sales of the year and the average receivable. Debtors Debtors Turnover Ratio = ----------------------- * 365 Net Credit Sales Years 2001-02 Debtors (a) 6309.55 Credit sales (b) 58871.06 Ratio (a/b) 39.12
[48]
2002-03 2003-04 2004-05 2005-06
6673.30 6532.28 3120.00 3423.73
46044.16 40347.01 44459.79 45167.17
52.90 59.09 25.61 27.67
Debtors Turnover Ratio 60 50

T 40 i m 30 e 20 s
59.09 52.9 39.12 25.61 27.67
10 0 2001-02 2002-03 2003-04

Year
2004-05
2005-06
Interpretation : Debtor Turnover Ratio was 27.67 times in 2005-06 which shows speady collection of money. But it was lower in 2004-05 i.e. 25.61. so company should take corrective measures. In last five years the Current Ratio is between 3.29 to 4.14 which was very good for the company. In last five years the Claim Of Creditors are less than that of owners but the claims of creditors is increases in last five years. The Propritory Ratio was almost stable during last four years. The Capital Gearing Ratio in 2005-06 was 2.31, the capital gearing is said to be high, this position is under capitalisation.
[49]
The Return On Propritory Fund Ratio of last five years shows that sharholders gate 9.60 profit which is very good for companys image. Loan and Advances are decreases in last year as compare to 2001. Reserve & Surplus of the company is decrese in the last year. In last year the Current Ratio was 3.45 while it was highest in the 2002-03 i.e. 4.14 so compnay should take corrective action for increase the ratio. In last year the Liquidity Ratio was 1.93 while it was highest in the 2001-02 i.e. 2.13 so compnay should take corrective action for increase the ratio. The Propritory Ratio in 2005-06 was 0.58 which shows a greater risk to creditors. So compnay should take care to increase ratio. The Capital Gearing Ratio shows that the position is under capitalisation. So compnay should use its capital effectively. As far as cash management is concerned, cash inflow is efficiently undertaken, but improvement in cash out flows i.e. payments & disbursement of cash requires considerable attention.
Books:-
[50]
Management Accounting By J.Made Gowda
Management Accounting By Bhagavati & Pillai (Second Edition)
Advanced Accounting By R.L.Gupta & M Radhaswami
Financial Management By M.Y.Khan & P.K.Jain
Annual report of garden silk mills limited Websites WWW.GARDENVARELI.COM WWW.CORPORATEINFORMATION.COM
[51]
Annexure A: Profit & Loss A/c

Particulars Income Sales & Job Charges -Excise Duty Income From Financial Operation Other Income Total Expenditure Consumption of RM (Increase)/Decrease In Stock Purchases Mfg.& Other Expenses Total Profit before Financial Charges, Depre. & Tax Less: Financial Charges Profit before Dep. &Tax Less: Depreciation Net Profit before Tax Less: Provision for Tax Current Deferred Earlier Years Net Profit after Tax + Balance B/F Balance For Appr. 2001-02 58871.04 -------1511.00 357.65 60739.69 36230.37 (152.23) 1826.74 17406.94 55311.84 5427.85 2304.96 3122.89 1293.03 1829.86 65.75 0.00 0.00 1764.11 3401.10 5165.21 2002-03 46044.16 -------119.62 131.61 46295.39 26335.24 (364.91) 1327.39 15089.36 42387.08 3908.31 1798.41 2109.90 1263.44 846.46 9.06 0.00 0.00 837.40 3822.86 4660.26 2003-04 40347.01 --------474.02 158.83 40979.86 19543.91 1658.33 3488.50 12798.06 37528.80 3451.06 1446.27 2004.79 1408.29 596.50 3.00 0.00 0.00 593.50 4129.29 4722.79 2004-05 44459.79 1930.04 352.57 195.16 43077.48 24079.43 273.70 3698.66 10543.71 37506.16 4481.98 906.26 3575.72 1511.38 2064.34 2.50 0.00 0.00 2061.84 4147.37 6209.21 2005-06 45167.17 1776.57 337.77 726.55 44454.92 23611.85 424.70 3093.56 11225.45 38595.50 6948.76 787.05 6161.71 2245.21 3916.5 3.00 986.01 0.98 2926.51 76.27 3002.78
[52]
[53]
Annexure B: Balance Sheet

Particulars Sources of Fund 1. Shareholder Fund Share Capital Reserve & Surplus 2. Loan Funds Secured Loan Unsecured Loan Total Application of Fund 1. Fixed Assets Gross Block Less: Depreciation Net Block Less: Lease Adjs. A/C Capital WIP 2. Investment 3. Current Assets Inventories Sundry Debtors Cash & Bank Balance Loan & Advances Other Current Assets Less: Current Liabilities Provision 4. Deferred Tax Liability 5. Misleading Expenses 2001-02 3829.06 31128.43 34957.49 9118.03 1425.53 10543.56 45501.05 33242.88 13473.61 19769.27 30.91 1654.02 21392.38 3261.27 6912.78 6309.55 1732.94 9560.06 117.08 24632.41 2972.47 856.90 3829.37 20803.04 0.00 44.36 45501.05 2002-03 3829.06 31455.80 35284.86 8772.48 2988.07 11760.55 47045.41 35272.73 14580.72 20692.01 69.50 1863.24 22485.75 3049.86 7460.98 6673.30 655.97 10169.44 126.19 25085.88 2886.68 744.25 3630.93 21454.95 0.00 54.85 47045.41 2003-04 3829.06 28853.62 42682.68 9645.37 254.09 9899.46 42582.14 37178.21 15891.57 21286.64 122.47 542.00 21706.17 3400.28 5631.97 6532.28 1248.23 7936.42 83.48 21432.38 3214.35 794.42 4008.77 17423.61 0.00 52.08 42582.14 2004-05 3829.06 30224.60 34053.66 9512.75 84.40 9597.15 43650.81 39640.88 16594.55 23046.33 6.89 1482.79 24522.23 5760.96 5428.34 3120.00 1553.20 6390.40 0.00 16491.94 2323.87 854.14 3178.01 13313.93 0.00 53.69 43650.81 2005-06 3829.06 26653.49 30482.55 9336.48 4764.55 14101.03 44583.58 43320.78 18783.39 24537.39 6.89 3811.19 28341.69 4070.30 5878.52 3423.73 4457.39 5915.06 0.00 19674.70 3325.99 761.51 4093.50 15581.20 -3507.73 98.12 44583.58
[54]
[55]
1.1 Organization Structure & All Activities:-
M.D. DIRECTOR MANAGER ASSISTANCE MANAGER SUPERVISOR
[56]
All Activities in Production Department:All activities which are carried our in Production Department are as follows:-
Market (Customer)
Marketing Department
Production (Producer)
Sampling for Production
Sampling for Production Department
Approval to market via Marketing Department
Production Starts
Dispatch to Marketing Department
[57]
Dispatch to Customer
First of all marketing people collect information from market (customer) which was used for production & also send design to producer for production of goods. All activities like first marketing department collect order from customer and also own created designs directly send to production department. Production department also ask for certain design to marketing people. In short first marketing people send design as per design received in production unit and after the confirmation received from marketing department production start. After production start then all the products dispatch to marketing department. Marketing department send all the goods to their customer. And also some product sends as for sample. So that customer knows about the product and sends order for that order.
[58]
1.2 Visit to the Manufacturing Unit and Engineering Unit:PLANT LOCATION:Vareli Village, Nr. Kadodara Junction N.H.No.8 Factors should be considered while selecting the Plants is:I. Availability of Raw-Material:Company have their own production plant for raw-material and remaining part of raw-material can be purchase from outside from Reliance Industries, Bombay Industries and also some part of raw-material and ingredients can be import from other country. II. Nearness to Market:All the cloths prepared in the company can be sending as per order and some part can be exported in other country. Generally most of order Company received in Bombay Market which was measure market for the company.
[59]
III. Availability of Power:Company has their own power generation so company does not have any problem relating to power. IV. Transport Facility:Companies have their own buses and companys plants are near to N.H.NO.8. So company benefited by this way.
V. Suitability of Climate:Companys plants available were climate suit to the plant. Because at that place all company available and so all facility provided by government benefit to the company. VI. Government Policy:Government provides subsidy and other benefit to the company. VII. Availability of Labour:Company located at GIDC area where labour can be easily available and company has their own bus facility who handles man power to traveling. Factor influencing layout:I. Material:Yarn II. Product:Sarees and Dress material III. Workers:-
[60]
Work in three shifts 1 worker handles 8 machines
IV. Machinery:Name of Machine Sizing Warping Beaming Leasing Water-jet loom Jet dying 00 Machine Printing Machine Folding Machine Packing Machine Cutting Machine V. Types of Machinery:Continuous Processing industry. VI. Location:Kadodara, Jolva, Sahara Darwaja Manufacturing System:No. of Machine 6 9 5 8 240 7000 -
[61]
The company used production factor as input like man, machine, capital etc. and get out put of cloths. Workers work in three shifts i.e. each shifts timing are 8 hours and during these 30 minutes break given to their employees.
1.3 Types of Products and their Specification: Types of product:-Sarees -Dress-Materials -SKD (Skirt, Kurt and Dupptta) -Suiting & Shirting etc. 1.4 Types of Raw-Material Used:Raw materials for yarn are as follows:DMT+MEDENOL (chemical) Raw materials for gray cloths are as follows:Yarn Raw material for Sarees and dress material are as follows:Gray cloths Raw material for production of Sarees and dress materials are produce in company itself at Jolva Plant and remaining part of raw-material can be purchase from out side. Companys policy for procurement of raw-material is three ways like:i. Own processing, ii. Outside processing (OP) and iii. Totally Out Side processing (OSP)
[62]
Percentages of procurement of Raw-material are as follows:OWN OP OSP 80% 10% 10%
Raw-Material like PFY (Polyester Filament Yarn) purchase from out side which is as follows: Reliance Industries Ltd. Bombay Dying and also import some Raw-Material used in production.
1.5 Brief Explanation of Production Process and its flow Chart:Draw Warping Machine:-
POY
CRIL SECTION 1500 P.P. 1200 P.P. DRAW JOMS TO STRETCH YARN 130 TEMP.HEAT + 80 TO 95 TEMP. COLD FOY (FULLY ORIENTED YARN) INTERMINGLE DEVICE TO BINDING
[63]
In Draw Warping Machine used for Stretching Polyester Filament Yarn. In this machine the following procedure can be done. First of all 1500 p.p. to 1200 p.p. size creel can be build up or beam of that size can be prepared. Then after draw joms machine stretch polyester filament yarn. In this machine two procedures can be done i.e. first 130temperature heating the yarn then 80 to 90temperature cold the yarn. So that POY can be converted into FOY (FULLY ORIENTED YARN). Then after intermingle device binding or beaming the FOY. Then after this beam send into another process.
1.6 Explanation or to study the details of any single equipment /Machine Operator and Comment on Related Micro Motion Aspects:I. Draw Warping Machine:-Fully German Technology -Speed 1000 -Actual Speed 900 -To Count -Yarn in meters automatically -Diameter -Width -Total Meter -Speed of Machine Total no. of machine in the company is 9 & all machine made in Germany. II. Rolling Machine or Beaming Machine:-Speed of machine
[64]
-Actual 650 -Rated 650 -Warping Length in meter -Windings -Circumferences Stopping condition -Inter Stretching -Outlet Stretching -Massage
III. Water-Jet Looms:-Total no of machine 240 -70/80 meter per day production per machine -Made in Germany -1 worker handles or operators After completion of these procedures then after caning and looms and finally grey fabric prepared. One officer also prepared one grey fabric checking report. This report can be check by HOD of that department and send for further processing. After this process Grey Fabric can be send in checking department for checking the mistake and then after send it to mending department where all mistake found by checking officer can be clear or rectify. Then send it for further processing.
In Mending Department grade can be given as follows:Grade can be given as per 1 defect in 100 meter.
[65]
Centimeter 1 to 3 3 to 6 6 to 9 9 and more Point 0 to 4 5 to 10 11 to 15 16 and more
Point 1 2 3 4 Grade A B B1 C
1.7 Types of Material Handling Equipment Used:-Pipe lines for liquid material -Truck for large beam -Lorry -Conveyer belt -Trolley -Patching machine -Jumbo Lorries -Pallets -Batching Machine -Electric Hoist for Beam passing -Standard Double-Deck Wood -Skid Boxes -Fork lift Truck -Plastic Boxes
1.8 Inventory Management for Raw-Material & Finishing Material:-
[66]
Generally in the company all the procedures for inventory management and all other control activity in company can be done automatically. Company also does ABC Analysis and EOQ Analysis.
1.9 Co-ordination Between: Stores and Production Purchase and Production Production and Dispatch Production and Engineering
Stores and Production:Central stores and purchase department and production department. If any stores item want in production department from stores and purchase department then HOD of production department write one memo to store and purchase department. This department received the memo and sends for checking sign of the memo and if not any mistake then sends goods as per requirements and prepared bills for that order and send it to Account department. In short:-
Bills Prepared for Required

Items
Bills Sign by Respective HOD
Send to Stores & Purchase

Dept.
[67]
Send for Checking of Sign of HOD by Stores & Purchase Dept. If no mistake found then send Items as per order by Stores & Purchase Dept. Send Bills to Account Dept. by Stores & Purchase Dept.
Production and Dispatch:Order Received From Customer As Per Order Prepared Item
Prepared Item Send to Marketing Dept.
Sizing Department:Input----Flat Yarn Sizing Beaming Leasing
[68]
Weaving Dept. -------Output Name of Machine Sizing Warping Beaming Leasing No. of Machine 8 3 3 8
1.10 Quality Assurance Measurement:Grade can be given as per 1 defect in 100 meter. Centimeter 1 to 3 3 to 6 6 to 9 9 and more Point 0 to 4 5 to 10 11 to 15 16 and more Grade A for high quality Grade B & B1 for medium quality Grade C for law quality. Point 1 2 3 4 Grade A B B1 C
[69]
[70]
Department Structure Product Planning Market Segmentation Customer Segmentation Competitors Pricing and Distribution Market Study Advertising Sales Promotion
Department Structure
C.E.O
Manager
[71]
General Staff
Product Planning:The Planning of the product is necessary in every organization. The company is plan the product and made it as per the need of the consumers. If the company is not plan the product and made the product as they like, the consumer will reject the product. The company should try to make the product as per the preference or the taste of the consumer. The company should also try under standing that type of goods consumer needs and what is the demand of the consumer. According to consumer Demand Company keep changes in their product planning.
Market Segmentation:-
[72]
Market Segmentation means The groups of people with demand are segmented according to the market in this department. There is the different type of market Segmentation. 1) Age 2) Income 3) Geographical
1) Age:In this human world the age different to different person. As per the age there are three parts first age is called childhood, second age is called young age and third age is called old age. There is different need for different age persons. Well the young age needs fancy & stylist cloths official persons needs formal dresses. Where need sprees & dress materials where the women.
2) Income:The people also try to see on their income. Income is also affecting this Segmentation. The people should purchase the product as per their income. If the income is so high people purchase high product and low they purchase low price product.
3) Geographical:There are five parts of Segmentation as per the geographical. Zone East West North State Assam, Bengal Gujarat, Maharastra Delhi, Punjab, Rajasthan Product sold 3% 35% 31%
[73]
South Central
Karla, Karnataka Madhy Pradesh, Orissa, Bihar, Chhatisgath
27% 4%
Competitors:The company has monopoly in his field but the other competitors are affect the company in the textile market the company has lots of competitors like SA, Brazil, Bata Chilean & Rex True from South Africa. All these company is the international competitors.
Pricing and Distribution:Pricing is the main thing in the company. At what price company want sale the product in the market and company also decide what the companys margin is and what is the cost of the product. This entire component company keeps in eye and then after selects the price of the product. Price = Margin + Cost of the Product In this distribution channel the company offer following offer to the distributor. The company offers two types of discount to the distributor, i.e. 1) Cash Discount 2) Trade Discount
[74]
The company also offers following payment policy 1) If the payment has been pay a month earlier they will get 2% discount. 2) If the payment pay in 30 days or pay interest after due date.
Channel of Distribution:Channel of Distribution means by which way the company provide finish product to the customer is called Distribution Channel. customer only one distributor between them. Garden Silk Mills use oneway distribution channel. In this channel the company directly contact to the
Market Study:Market study means study of the consumer market that what, why, and how they want the product. And how much is the buyer of their product. From the market research the Distribution easily produce the product and also sale its in right way.
Advertising & Sales Promotion:Advertising is the main component for the sale of the product the company can use any way for the advertise their product. The companies advertise via T.V.
[75]
by giving add or by newspaper or by door-to-door sale or by giving free sample. All these way company make popular their product. Advertising publicity is the promotional tools of the company. Sales promotion offers an impulse to buy product. Is main difference between sales promotion and advertising in the company?
Promotional Tools:(1)Consumer Promotional Tools (2)Trade Promotional Tools (3)Business Promotional Tools
(1)Consumer Promotional Tools: Samples:The company is give free product to the retailer as a sample in term of returning. If the consumer will not like this product the retailer will return to the company.
Discount:-
[76]
Discount is that thing gives some money back to the buyer as the original price. It is the some% rate on the original price.
Gift:Some company attracts the consumer by giving attractive gift to them. The Garden Silk Mills give 2.5 mitts. Cloths on purchase product of Rs.2000 & also give 5 mitts cloths on purchase of Rs.3500.The company also gives gift as Dupptta, design cloths on purchase of Rs.4500. All above gift is very effective & Promotional gift to attract the consumer. The company to its own retail shop gives this scheme.
(2) Trade Promotion Tools:-
Purchase back:The company has its own despicability for, if the product is defective or
not good quality, it is purchase back by company. It is companys guarantee.
Discount:-
[77]
The company always gives some discount on its selected items to the retailer or wholesaler. If the consumer purchases some selected brand the company gives them some discount.
(3)Business Promotional Tools: Advertising:The company has its own advertising tools to attract the consumer. The company uses women on its advertising because the company produces only dress and Sarees so women can attract women.
Trade show:The company also takes part in trade show, which is organized in Delhi every year. The company also organized exhibition come sale in different city.
[78]
Wage & Salary Personnel Management Overview Personnel Policy Recruitment & Selection Educational Criteria for Selection Facilities at the Plant
Wage & Salary:-
[79]
The company given minimum daily salary is Rs.63.10 for unskilled labour but company gives monthly salary to the labour accordingly the government rules. The monthly salary round about approximately Rs.1600 to 2000 is given to the labors according to the dearness allowance to the workers after deduction of salary. The company gives basic salary base on bonus, provident fund and employees share of income after the dear allowance included medical book, periodical and conveyance allowance of every month. The company also takes attendance of every worker and gives them attendee of every worker and for making the worker absence and presence company also provide the provident fund from the employee salary it is 12% for the unforeseeable requirement up to 30% for employees granted credit of their contribution. The company also provides the leaves to the employee. There is at least one also off days on festivals there are 39 days off during the year. The company also paid for the off days here the company registered leave of the worker and rest of leaves carry forward to the next year. The company also provides the loan facility to the necessary employee or worker who wants to take the loan. The company also provides the labour welfare fund it is only 50 paisa per each employee are deposited twice in a year in June & December. The employees also provide the pension to all their employees it is 12% of his salary is transferred to A\C no. is known as pension. The company gives medical expenses to the employees @8.33 of total one-month salary provided in March & December. The company also secures life insurance for the workers.
[80]
Personnel Management Overview:The company management system is well established in the personnel management system. The relationship between management and employee are perfectly maintained in personnel management. There are 5000 workers in the company out of 3000 are at main plants and rest of the other plants.
Personnel Policy:The Personnel policy of company included the job securities to the employees give the right work to the right employee and also give the training to the employees or their work to get work in full fledge also provide the every well work environment to the worker to shoe his ability in his way.
Recruitment & Selection:Recruitment is desired as the sources of manpower to meet the requirement of the staffing schedule and attracting manpower in adequate numbers to facilitate effective selection. Selection means pick the individual person from the outside who is the highly talented and who is the best knowledge.
[81]
Selection Process:Selection made at the time of company needs labour worker than company advertises in the newspaper and ask for the job. Advertisement is given in most of sources of employees and recruits in government employment exchange. When the employee apply for the same job as for the advertisement. The company called for the interview to the right employee and then after company takes different test of the employees as per their requirement. After taking the best of employee Candidates are called for the interview. It is the final interview of the candidates in this interview the background, credit, reference and their job expectation are checked by the interviewer and at least the right and passing all the test is given the job.
Educational Criteria for Selection:For Manager & Supervisor:Managers possessing textile or production degree are employed to respective jobs in beginning the salary is Rs.4500/For Temporary Staff:In the temporary Staff level science gradates or diploma in engineering filed are selected their salary is Rs.3500/- at the beginning. For Labour:-
[82]
There is no need to any educational criteria for the labour job in this job has experience and skill for the work their wages is given to them according to their daily wage system.
Facilitate at the Plant:A).Security:The company is very strict in the security so there is one security man at the main gate. He checks the every one who is come in the company and no car allowed in the company without permission of gate security all the employees are given gate pass and also bus pass. Who has gate is only enter and go out the company.
B).Canteen:There is a well developed canteen in the compound of company. The canteen is made for the employees and its providing the everything at every reasonable price in the canteen. There is a coupon required for eat anything in the canteen.
C) Transport:The Garden silk mills have very good transport facility for the readymade garments and raw-material required by the company and its provided also transport facility for their employees. First of all the employees need to reach at Sahara gate and then companys buses drop the employees at different plant whenever they wants to go at 8clock in the morning the other companys vehicle also goes to the
[83]
plant at 10:00pm. This facility is only for higher cadre employees .When any employee has half leave and he wants to come they can come back by the bus at 3oclock. It is the first shift and buses and other vehicle are ready for them. There are also for come back at 5oclock at the end of the second shift.
D) First Aid Medical:The Company has its own dispensary to provide a first aid service to the employees when the employees is injured he is treatment and when workers fall ill in the company he is treatment properly. If any worker faced accident in the plant he is taken to the nearest hospital by the cost of the company and all treatment expenses is given by the company. The company also provides medical facility for the workers family. If any workers family member falls ill the company gives him money and hospital facility.
Training:The training facility is provide by the company and it is necessary for all workers or employees training is one type of process to aware the employees for their work and organization and how they do their work. There is staff for give the training to the new employees and he is aware about the environment of the company. The training given to the employees is highly motivated.
Promotion:Promotion is done to fill up the vacancy when the company fills sometimes some post. They have two options for fill up the job first is by recruit by external sources or second is by promoting the old employees .The Company mostly preferred to promote the employees for the job.
[84]
Performance Appraisal:The company follows senior recommended appraisal by their senior and they are increment as per recoded by senior system and not only strutted performance appraisal system.
Swot Analysis
S. Strength W. Weakness O. Opportunities T. Threats
Strength
The company must contact with other retail shops and advertise product. The company also starts new production plant near the residential area. The company must have monopoly in the Indian markets. The company must have very highly talented staff in every department. They must have good credit in the markets.
Weakness
[85]
The main weakness of the company is the cost of the productivity is very high. There is also very unnecessary are staff in production department and also in finance department. The company has very poor marketing in India. The company does not contact with other retail shops.
Opportunities
The high demand of growth of PFY &PFY based fabric in the past and world trends suggest that it is expected to continue its high growth. The company hopes to benefit from this growth especial since it has a product profile that is highly differentiate. The company enjoys a strong brand image with customers and its proximity to Surat a key market should provide an advantage.
Threats
Should raw material prices to continue to rise in the industry could slow down. New expansion by others in the industry could have an impact on margins. Due to cyclical business trends, profitability will be linked to world wide demand condition for PFY. A substantial rise in the value of the rou will reduce the cost of imports and increase competition.
[86]
[87]

Gardan Silk Main

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Gardan Silk Main

Uploaded by

Copyright:

Available Formats

Garden Silk Mill Pvt. Ltd.

GARDEN SILK MILLS

Garden Silk Mill Pvt. Ltd.

Place: Surat G. Date:

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

CHAPTER NO 2 FINANCIAL DEPARTMENT

PRODUCTION DEPARTMENT CHAPTER NO 3

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Chairman & Managing Director

General Manager Marketing

Import & Export Director

Head of the Departmen Organization t Structure Staff

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

CONCEPT OF FINANCIAL STATEMENT

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Comparative Balance Sheet as on 30th June 2002 & 2001

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Common size Balance Sheet as on 30th June, 2005-2006

Garden Silk Mill Pvt. Ltd.

Importance of Ratio Analysis :-

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Profit & Loss A/c Ratio

Balance Sheet Ratio

A. Profit & Loss A/c Ratio

Garden Silk Mill Pvt. Ltd.

2.Net Profit Ratio :-

Garden Silk Mill Pvt. Ltd.

Net Profit Ratio

6.49 4.79 2.83 1.77 1.5

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Years 2001-02 2002-03 2003-04 2004-05 2005-06

Cost of Goods Sold (a) 54311.84 41287.08 37128.80 41525.54 36506.16

Avg. Inventory (b) 3431.33 3486.77 3107.66 2491.48 2673.68

Ratio (a/b) 15.83 11.84 11.95 16.67 13.65

Stock Turnover Ratio

20 T i 15 m 10 e s 5 . 0 15.83 11.84 11.95

B. Balance Sheet Ratio

Garden Silk Mill Pvt. Ltd.

Ratio (a/b) 4.04 4.14 3.35 3.29 3.45