The document provides information about The Gadag Co-operative Textile Mill Ltd in Gadag, Karnataka, India. It was established in 1972 by K.H. Patil to produce yarn. The mill started with an initial investment of Rs. 220 lakhs and began production in 1973. It has various departments that work interdependently towards common objectives like production. The project studies the company's profile, SWOT analysis, annual reports and working capital management. It aims to understand the working capital sources, components, operating cycle and liquidity position through ratio analysis.
This document discusses the textile industry in India. It notes that the textile industry is the second largest employment generating sector in India, offering jobs to over 35 million people. It also outlines the major players in the industry such as Arvind Mills, Bombay Dyeing, and Vardhman Group of Companies. The document discusses the strategies employed by different players, including a focus on jeans for Arvind and having a wide range of local and international brands for Bombay Dyeing. It also analyzes factors like bargaining power, threat of substitutes, and competitive rivalry within the industry.
A case study on the strategic change of Arvind Mills- one of the biggest players in the Textile Industry around the globe.
Arvind Mills managed to stay afloat even during the recession of 1980s. Arvind is a tough competitor for players like Aditya Birla Grasim, Welspun, Alok Industries, S.Kumar's, Reliance Industries, and many more.
This presentation provides an overview of Arvind Mills, a leading Indian textile and apparel company. Some key points:
- Arvind Mills was founded in 1931 and is headquartered in Ahmedabad. It has over 25,000 employees and operates in textiles, garment exports, and owns and licenses several brands.
- The Indian textiles industry is large and growing, expected to reach over $223 billion by 2021. Arvind Mills has a diverse business across fabrics, garment exports, and owned/licensed brands.
- A SWOT analysis identifies Arvind Mills' strengths as operational efficiency, skilled labor, and access to export markets, while weaknesses include business concentration
working capital management dcm textile summer reportsumit payal
The document provides an overview of the Indian textile industry and DCM Textiles Ltd. It discusses that the textile industry is one of India's oldest and employs over 35 million people. It also earns a significant portion of India's foreign exchange. DCM Textiles is a spinning mill located in Hisar, Haryana that manufactures cotton yarn. It has modern machinery and supplies both domestic and international markets. The document then outlines DCM Textiles production process which involves blowing, carding, combing, drawing, simplex, and ring frame operations to transform cotton into yarn.
working capital management dcm textile sumit payal
The document discusses working capital management of DCM Textiles. It provides details about the company, its current assets and current liabilities over the past few years, and various ratios to analyze working capital management and liquidity position. The working capital has increased over time except in 2012-13. Current assets have also increased while current liabilities have decreased in some years. Various liquidity, solvency, activity, and profitability ratios are also presented to evaluate working capital management and financial performance of DCM Textiles.
This document provides an overview of the textile industry in India. It discusses the history and importance of the textile industry as one of the largest employers in India. It then describes the workings of various departments in textile companies, including accounts, finance, marketing, sales, and production. It also summarizes the market size of the Indian textile industry and provides a SWOT analysis and discussion of the marketing mix strategies used. Finally, it outlines some of the key challenges faced by the industry and initiatives taken by the Indian government to support the textile sector.
This document provides an organizational study report on Raymond Ltd conducted by Udhay Kumar DM for their MBA program. It includes an overview of Raymond Ltd, which was established in 1925 in India and is a leading producer of worsted fabrics. Key details provided include Raymond's divisions, leadership, financial performance, and products/services which include textiles, denim, engineering tools, aviation, and designer wear.
Arvind Mills is one of India's leading textile manufacturers, headquartered in Ahmedabad, Gujarat. It produces a range of cotton, denim, knit, and khaki fabrics. The company was founded in 1931 and has since grown to employ over 26,000 people. Arvind Mills aims to enhance people's lifestyles through its textiles and clothing brands. It manufactures fabrics and garments for both domestic sales and export and holds licenses for international brands like Lee, Wrangler, and Nautica. The company continues to expand its product range and global market reach under the leadership of Chairman and MD Sanjay Lalbhai and Director and CFO Jayesh Shah.
This document discusses the textile industry in India. It notes that the textile industry is the second largest employment generating sector in India, offering jobs to over 35 million people. It also outlines the major players in the industry such as Arvind Mills, Bombay Dyeing, and Vardhman Group of Companies. The document discusses the strategies employed by different players, including a focus on jeans for Arvind and having a wide range of local and international brands for Bombay Dyeing. It also analyzes factors like bargaining power, threat of substitutes, and competitive rivalry within the industry.
A case study on the strategic change of Arvind Mills- one of the biggest players in the Textile Industry around the globe.
Arvind Mills managed to stay afloat even during the recession of 1980s. Arvind is a tough competitor for players like Aditya Birla Grasim, Welspun, Alok Industries, S.Kumar's, Reliance Industries, and many more.
This presentation provides an overview of Arvind Mills, a leading Indian textile and apparel company. Some key points:
- Arvind Mills was founded in 1931 and is headquartered in Ahmedabad. It has over 25,000 employees and operates in textiles, garment exports, and owns and licenses several brands.
- The Indian textiles industry is large and growing, expected to reach over $223 billion by 2021. Arvind Mills has a diverse business across fabrics, garment exports, and owned/licensed brands.
- A SWOT analysis identifies Arvind Mills' strengths as operational efficiency, skilled labor, and access to export markets, while weaknesses include business concentration
working capital management dcm textile summer reportsumit payal
The document provides an overview of the Indian textile industry and DCM Textiles Ltd. It discusses that the textile industry is one of India's oldest and employs over 35 million people. It also earns a significant portion of India's foreign exchange. DCM Textiles is a spinning mill located in Hisar, Haryana that manufactures cotton yarn. It has modern machinery and supplies both domestic and international markets. The document then outlines DCM Textiles production process which involves blowing, carding, combing, drawing, simplex, and ring frame operations to transform cotton into yarn.
working capital management dcm textile sumit payal
The document discusses working capital management of DCM Textiles. It provides details about the company, its current assets and current liabilities over the past few years, and various ratios to analyze working capital management and liquidity position. The working capital has increased over time except in 2012-13. Current assets have also increased while current liabilities have decreased in some years. Various liquidity, solvency, activity, and profitability ratios are also presented to evaluate working capital management and financial performance of DCM Textiles.
This document provides an overview of the textile industry in India. It discusses the history and importance of the textile industry as one of the largest employers in India. It then describes the workings of various departments in textile companies, including accounts, finance, marketing, sales, and production. It also summarizes the market size of the Indian textile industry and provides a SWOT analysis and discussion of the marketing mix strategies used. Finally, it outlines some of the key challenges faced by the industry and initiatives taken by the Indian government to support the textile sector.
This document provides an organizational study report on Raymond Ltd conducted by Udhay Kumar DM for their MBA program. It includes an overview of Raymond Ltd, which was established in 1925 in India and is a leading producer of worsted fabrics. Key details provided include Raymond's divisions, leadership, financial performance, and products/services which include textiles, denim, engineering tools, aviation, and designer wear.
Arvind Mills is one of India's leading textile manufacturers, headquartered in Ahmedabad, Gujarat. It produces a range of cotton, denim, knit, and khaki fabrics. The company was founded in 1931 and has since grown to employ over 26,000 people. Arvind Mills aims to enhance people's lifestyles through its textiles and clothing brands. It manufactures fabrics and garments for both domestic sales and export and holds licenses for international brands like Lee, Wrangler, and Nautica. The company continues to expand its product range and global market reach under the leadership of Chairman and MD Sanjay Lalbhai and Director and CFO Jayesh Shah.
Arvind Internet a division of Arvind Limited Internship Project Reportkunal mittal
Omni Channel for better customer experience and retail Profitability, Arvind Internet, IIP Report, Industrial Internship, Retail Report, Internship Project, Brief Introduction to Omni channel
This document provides an overview of Raymond Limited, an Indian textile company. It discusses the textile sector in India including industry size, growth drivers, and Porter's five forces analysis. It then provides details on Raymond's market share, brands and products, recent news, competitors, and SWOT analysis. Financial statements including the income statement, balance sheet, and cash flow are also included. The document concludes with information on Raymond's organizational structure, job descriptions, culture, and training needs.
Arvind Limited is a textile manufacturer headquartered in Ahmedabad, India. It was founded in 1931 by Kasturbhai Lalbhai in response to Mahatma Gandhi's call for Swadeshi. Arvind is now a global leader in denim and textile production with over 25,000 employees. It produces around 130 million meters of fabric annually under various brands like Flying Machine, Excalibur, and for global partners. Arvind has diversified into various business segments like real estate, water treatment, advanced materials and engineering. In 2016, Arvind reported a net income of Rs. 318.85 crore and revenue of Rs. 5,407.26 crore.
This document contains an introduction and outline for a study on the financial performance analysis of a company. The introduction defines key terms like financial statements and financial statement analysis. The objectives of the study are to analyze the company's liquidity, leverage, activity, and profitability ratios over multiple years. The research methodology discusses the descriptive research design, secondary data collection from annual reports, and tools used like ratio analysis, common-size statements, comparative statements, and trend analysis. The document also provides an outline of the table of contents and chapters to be included in the study.
This document provides details about the internship of Noorul Islam Saiful at Crystal Composite Ltd, including:
1) An introduction to Crystal Composite Ltd and overview of its facilities and production capacities.
2) Details about the different departments within the company including knitting, dyeing, finishing, garments production, and support functions.
3) The first chapter focuses on the knitting section and provides definitions and classifications of knitting, descriptions of knitting structures and processes, and specifics of Crystal Composite Ltd's knitting operations.
The textile industry is one of India's largest and oldest industries, contributing significantly to the national economy. It provides direct employment to over 35 million people and is the second largest provider of employment after agriculture. The textile industry contributes about 14% to industrial production and 4% to India's GDP. Major segments of the textile industry include cotton, silk, wool, readymade garments, and hand-crafted textiles. The industry has grown substantially since economic liberalization in the 1990s but still faces challenges from competition and rising costs. The government has introduced various initiatives and regulatory policies to support the textile industry.
Working capital management project report mbaBabasab Patil
This document provides an index and executive summary of a study on the working capital management of Bahety Chemicals & Minerals Pvt Ltd, located in Dandeli, India. The study examines the company's working capital over a five year period from 2006-2010. Key findings include that the company's working capital and profits have increased each year, and it maintains current and quick ratios above standard requirements, indicating a satisfactory level of working capital management and liquidity. The document outlines the objectives, scope, limitations and methodology of the study.
This document provides information about Mahima Arora's textile internship at Arvind Limited's Denim Division from 2016-2020. It discusses the objectives of the internship, which were to understand processes like spinning, weaving, dyeing, printing, and quality testing. It also provides details about Arvind Limited, including its vision, production process flow, profile of the denim department, major customers, and an overview of the spinning section where processes like blowroom, carding and spinning are described.
Textile industry in india (aliya siddiqua , mounika, divya)Aliya Siddiqua
The Indian textile industry contributes significantly to the Indian economy through industrial production, employment, and exports. It accounts for 20% of industrial output, 9% of excise collections, 18% of industrial employment, nearly 20% of total exports, and 4% of GDP. The modern Indian textile industry began in the early 19th century with the establishment of the first textile mill in Calcutta in 1818. Today it is one of the largest textile industries in the world, dominated by cotton but also including silk, jute, wool, and man-made fibers.
An organisation study At bombay rayon fashion LtdRahul G
The document provides an overview of Bombay Rayon Fashions Limited (BRFL), an Indian textile and garment manufacturing company. It discusses BRFL's history, starting in 1986 and expanding through acquisitions and new facilities. BRFL exports textiles and garments to markets in the US, UK, and Europe. The document also provides context on the Indian textile industry, including its history and growth, key exports, challenges, and major players. BRFL has expanded significantly over time through integration, expansion, and acquisition to become one of the largest textile companies in India.
The document provides an overview of the global and national textile and apparel industries. It discusses the evolution of the industries from cottage production to modern industrialized production. Key points include:
- Developing countries now produce half of global textile exports, with India's textile industry contributing significantly to its economy and exports.
- The Indian apparel industry is highly fragmented with many small-scale producers and faces challenges like lack of skilled labor and low technological development due to its fragmented structure.
- The industry provides important employment, particularly for women, but faces shortages of trained managers and workers that could hinder its continued growth potential.
A project report on ratio analysis at the gadag co operative textile mill ltdBabasab Patil
This document provides an overview and background of the Gadag Co-operative Textile Mill Ltd located in Hulkoti, Karnataka, India. It discusses the company's history, facilities, production process, competitors, and administrative functions. The key points are:
1) The mill was established in 1972 with 25,000 spindles and produces and sells cotton yarn.
2) It has over 3,000 member shareholders and employs around 650 people.
3) The production process involves mixing, cleaning, carding, and spinning cotton into yarn of various counts on ring frames.
4) The mill's main competitors are three other local cooperative spinning mills.
The Indian textile industry is a major sector that provides employment to millions of people. It can be divided into organized and unorganized sectors. The organized sector includes spinning mills and composite mills, while the unorganized sector includes powerlooms, handlooms, and khadi. The textile industry faces issues like outdated technology, lack of skilled labor, and environmental pollution from small units. The government is taking measures like technology upgradation programs and funding to promote modernization and sustainability in the industry.
Raymond Limited is an Indian apparel and accessories company with 550 stores across 200 cities in India and overseas. It has a strong R&D department that innovates products like dress shirts and jeanswear. Raymond has customer and employee loyalty due to its high quality products and decentralization. However, its global penetration is limited compared to other brands and customers have low switching costs since many alternatives exist. Opportunities for Raymond include offering corporate deals and global expansion, but it faces threats from increasing competition and needs to follow strict labor and environmental laws.
This presentation discusses SWOT analysis, which analyzes a company's strengths, weaknesses, opportunities, and threats. It was developed at Stanford over 9 years with Fortune 500 company funding. SWOT allows businesses to define goals, improve capabilities, overcome weaknesses with strengths, and identify threats that can become opportunities. The document then provides an example SWOT analysis for a company called Debonair, identifying its internal strengths and weaknesses as well as external opportunities and threats. It concludes that SWOT analysis has benefits and limitations but can help a company overcome threats and weaknesses.
Arvind Mills - Managerial Accounts ProjectKrupesh Shah
This document provides information about Arvind Mills, an Indian textile company. It discusses Arvind Mills' founding in 1931, sectors, headquarters, employees, and business areas including spinning, weaving, processing and garment production. Key milestones are presented from 1931 to present day. Production processes, marketing strategies, HR strategy, BEP, PV ratio, MOS, stock market analysis and future growth of the company and industry are summarized. The company has expanded its product portfolio, distribution networks and launched new brands to capture market opportunities.
This document provides an industry profile of the leather industry in India. It discusses the major production centers, structure of the industry including the tanning, footwear, leather goods, and leather garments sectors. It also analyzes the major players, government regulations and support, Porter's five forces, SWOT analysis, competitive advantages, and environmental issues of the Indian leather industry. The leather industry is an important sector for India's economy, generating employment and foreign exchange through exports.
Textiles Industry in India: A SWOT AnalysisCraftsinindia
The document discusses the strengths of the Indian textiles industry, including that it is an independent and self-reliant industry with abundant and low-cost raw materials and skilled labor. It has advantages in cotton fiber production as well as synthetic fibers and spinning, and is a major global exporter of cotton yarn, accounting for 25% of world trade. The industry represents the rich culture, traditions, and economic prosperity of India.
Swot analysis of textile sector for bangladeshVICTOR ROY
The document provides a SWOT analysis of the textile sector in Bangladesh. It identifies several strengths, including low labor costs, accessible infrastructure, and government support for foreign investment. Weaknesses include a reliance on imported raw materials, low productivity, and inefficient ports. Opportunities lie in expanded export markets and potential to move into higher value products. Threats include competition from China and potential trade barriers related to labor standards and environmental regulations. The analysis concludes that a SWOT framework can help identify strategies to address weaknesses and threats facing the industry.
A project report on working capital management nirani sugars ltdBabasab Patil
The document discusses working capital management at Nirani Sugars Ltd. It includes an executive summary that outlines the objectives, methodology, and scope of the study which examines the company's working capital needs, components, financing sources, and management efficiency over 5 years. Ratio analysis is used to evaluate the working capital position and overall financial performance of the company. The document also provides background information on India's sugar industry.
Arvind Internet a division of Arvind Limited Internship Project Reportkunal mittal
Omni Channel for better customer experience and retail Profitability, Arvind Internet, IIP Report, Industrial Internship, Retail Report, Internship Project, Brief Introduction to Omni channel
This document provides an overview of Raymond Limited, an Indian textile company. It discusses the textile sector in India including industry size, growth drivers, and Porter's five forces analysis. It then provides details on Raymond's market share, brands and products, recent news, competitors, and SWOT analysis. Financial statements including the income statement, balance sheet, and cash flow are also included. The document concludes with information on Raymond's organizational structure, job descriptions, culture, and training needs.
Arvind Limited is a textile manufacturer headquartered in Ahmedabad, India. It was founded in 1931 by Kasturbhai Lalbhai in response to Mahatma Gandhi's call for Swadeshi. Arvind is now a global leader in denim and textile production with over 25,000 employees. It produces around 130 million meters of fabric annually under various brands like Flying Machine, Excalibur, and for global partners. Arvind has diversified into various business segments like real estate, water treatment, advanced materials and engineering. In 2016, Arvind reported a net income of Rs. 318.85 crore and revenue of Rs. 5,407.26 crore.
This document contains an introduction and outline for a study on the financial performance analysis of a company. The introduction defines key terms like financial statements and financial statement analysis. The objectives of the study are to analyze the company's liquidity, leverage, activity, and profitability ratios over multiple years. The research methodology discusses the descriptive research design, secondary data collection from annual reports, and tools used like ratio analysis, common-size statements, comparative statements, and trend analysis. The document also provides an outline of the table of contents and chapters to be included in the study.
This document provides details about the internship of Noorul Islam Saiful at Crystal Composite Ltd, including:
1) An introduction to Crystal Composite Ltd and overview of its facilities and production capacities.
2) Details about the different departments within the company including knitting, dyeing, finishing, garments production, and support functions.
3) The first chapter focuses on the knitting section and provides definitions and classifications of knitting, descriptions of knitting structures and processes, and specifics of Crystal Composite Ltd's knitting operations.
The textile industry is one of India's largest and oldest industries, contributing significantly to the national economy. It provides direct employment to over 35 million people and is the second largest provider of employment after agriculture. The textile industry contributes about 14% to industrial production and 4% to India's GDP. Major segments of the textile industry include cotton, silk, wool, readymade garments, and hand-crafted textiles. The industry has grown substantially since economic liberalization in the 1990s but still faces challenges from competition and rising costs. The government has introduced various initiatives and regulatory policies to support the textile industry.
Working capital management project report mbaBabasab Patil
This document provides an index and executive summary of a study on the working capital management of Bahety Chemicals & Minerals Pvt Ltd, located in Dandeli, India. The study examines the company's working capital over a five year period from 2006-2010. Key findings include that the company's working capital and profits have increased each year, and it maintains current and quick ratios above standard requirements, indicating a satisfactory level of working capital management and liquidity. The document outlines the objectives, scope, limitations and methodology of the study.
This document provides information about Mahima Arora's textile internship at Arvind Limited's Denim Division from 2016-2020. It discusses the objectives of the internship, which were to understand processes like spinning, weaving, dyeing, printing, and quality testing. It also provides details about Arvind Limited, including its vision, production process flow, profile of the denim department, major customers, and an overview of the spinning section where processes like blowroom, carding and spinning are described.
Textile industry in india (aliya siddiqua , mounika, divya)Aliya Siddiqua
The Indian textile industry contributes significantly to the Indian economy through industrial production, employment, and exports. It accounts for 20% of industrial output, 9% of excise collections, 18% of industrial employment, nearly 20% of total exports, and 4% of GDP. The modern Indian textile industry began in the early 19th century with the establishment of the first textile mill in Calcutta in 1818. Today it is one of the largest textile industries in the world, dominated by cotton but also including silk, jute, wool, and man-made fibers.
An organisation study At bombay rayon fashion LtdRahul G
The document provides an overview of Bombay Rayon Fashions Limited (BRFL), an Indian textile and garment manufacturing company. It discusses BRFL's history, starting in 1986 and expanding through acquisitions and new facilities. BRFL exports textiles and garments to markets in the US, UK, and Europe. The document also provides context on the Indian textile industry, including its history and growth, key exports, challenges, and major players. BRFL has expanded significantly over time through integration, expansion, and acquisition to become one of the largest textile companies in India.
The document provides an overview of the global and national textile and apparel industries. It discusses the evolution of the industries from cottage production to modern industrialized production. Key points include:
- Developing countries now produce half of global textile exports, with India's textile industry contributing significantly to its economy and exports.
- The Indian apparel industry is highly fragmented with many small-scale producers and faces challenges like lack of skilled labor and low technological development due to its fragmented structure.
- The industry provides important employment, particularly for women, but faces shortages of trained managers and workers that could hinder its continued growth potential.
A project report on ratio analysis at the gadag co operative textile mill ltdBabasab Patil
This document provides an overview and background of the Gadag Co-operative Textile Mill Ltd located in Hulkoti, Karnataka, India. It discusses the company's history, facilities, production process, competitors, and administrative functions. The key points are:
1) The mill was established in 1972 with 25,000 spindles and produces and sells cotton yarn.
2) It has over 3,000 member shareholders and employs around 650 people.
3) The production process involves mixing, cleaning, carding, and spinning cotton into yarn of various counts on ring frames.
4) The mill's main competitors are three other local cooperative spinning mills.
The Indian textile industry is a major sector that provides employment to millions of people. It can be divided into organized and unorganized sectors. The organized sector includes spinning mills and composite mills, while the unorganized sector includes powerlooms, handlooms, and khadi. The textile industry faces issues like outdated technology, lack of skilled labor, and environmental pollution from small units. The government is taking measures like technology upgradation programs and funding to promote modernization and sustainability in the industry.
Raymond Limited is an Indian apparel and accessories company with 550 stores across 200 cities in India and overseas. It has a strong R&D department that innovates products like dress shirts and jeanswear. Raymond has customer and employee loyalty due to its high quality products and decentralization. However, its global penetration is limited compared to other brands and customers have low switching costs since many alternatives exist. Opportunities for Raymond include offering corporate deals and global expansion, but it faces threats from increasing competition and needs to follow strict labor and environmental laws.
This presentation discusses SWOT analysis, which analyzes a company's strengths, weaknesses, opportunities, and threats. It was developed at Stanford over 9 years with Fortune 500 company funding. SWOT allows businesses to define goals, improve capabilities, overcome weaknesses with strengths, and identify threats that can become opportunities. The document then provides an example SWOT analysis for a company called Debonair, identifying its internal strengths and weaknesses as well as external opportunities and threats. It concludes that SWOT analysis has benefits and limitations but can help a company overcome threats and weaknesses.
Arvind Mills - Managerial Accounts ProjectKrupesh Shah
This document provides information about Arvind Mills, an Indian textile company. It discusses Arvind Mills' founding in 1931, sectors, headquarters, employees, and business areas including spinning, weaving, processing and garment production. Key milestones are presented from 1931 to present day. Production processes, marketing strategies, HR strategy, BEP, PV ratio, MOS, stock market analysis and future growth of the company and industry are summarized. The company has expanded its product portfolio, distribution networks and launched new brands to capture market opportunities.
This document provides an industry profile of the leather industry in India. It discusses the major production centers, structure of the industry including the tanning, footwear, leather goods, and leather garments sectors. It also analyzes the major players, government regulations and support, Porter's five forces, SWOT analysis, competitive advantages, and environmental issues of the Indian leather industry. The leather industry is an important sector for India's economy, generating employment and foreign exchange through exports.
Textiles Industry in India: A SWOT AnalysisCraftsinindia
The document discusses the strengths of the Indian textiles industry, including that it is an independent and self-reliant industry with abundant and low-cost raw materials and skilled labor. It has advantages in cotton fiber production as well as synthetic fibers and spinning, and is a major global exporter of cotton yarn, accounting for 25% of world trade. The industry represents the rich culture, traditions, and economic prosperity of India.
Swot analysis of textile sector for bangladeshVICTOR ROY
The document provides a SWOT analysis of the textile sector in Bangladesh. It identifies several strengths, including low labor costs, accessible infrastructure, and government support for foreign investment. Weaknesses include a reliance on imported raw materials, low productivity, and inefficient ports. Opportunities lie in expanded export markets and potential to move into higher value products. Threats include competition from China and potential trade barriers related to labor standards and environmental regulations. The analysis concludes that a SWOT framework can help identify strategies to address weaknesses and threats facing the industry.
A project report on working capital management nirani sugars ltdBabasab Patil
The document discusses working capital management at Nirani Sugars Ltd. It includes an executive summary that outlines the objectives, methodology, and scope of the study which examines the company's working capital needs, components, financing sources, and management efficiency over 5 years. Ratio analysis is used to evaluate the working capital position and overall financial performance of the company. The document also provides background information on India's sugar industry.
Project report on working capital managementProjects Kart
This document appears to be a summer training report submitted for a post graduate degree in international business. The report contains 14 chapters that analyze working capital management at Kotak Mahindra Group, an Indian multinational financial services company. The first part provides details on the author's on-job training and competitive analysis of Kotak Mahindra Old Mutual Life Insurance products compared to ICICI Prudential Life Insurance. The second part is a project comparing the Indian mutual fund industry to global standards and expectations for its future development. The report utilizes primary and secondary research methods including surveys, financial statements, annual reports and industry journals.
The document discusses India's biotechnology sector and the government's efforts to support it through increased funding from various five-year plans, fiscal incentives at both central and state levels, and initiatives to build human resources and research infrastructure. It notes that government funding to the science and technology sector increased eight-fold from the 8th to 11th five-year plan, with support to the life sciences sector rising 16-fold in the same period. Charts are provided showing the growth in total S&T funding and funding specifically for the Department of Biotechnology over different five-year plans.
The document provides background information on working capital management. It discusses how working capital is essential for companies to meet daily expenses but needs to be managed properly. It then introduces the Orissa Power Transmission Corporation Limited (OPTCL), one of India's largest power transmission organizations, as the focus of the study. The study will analyze OPTCL's working capital position and make recommendations. It outlines the objectives, hypotheses and limitations of the study. Finally, it provides an overview of OPTCL, including its vision, mission and operations across Orissa.
This document discusses a study on working capital management at Sudha Agro Oil and Chemical Industries Limited in Samalkota, India. It provides background on the oil and chemical industry in India and the company. The methodology, objectives, and limitations of the study are described. The document outlines the various chapters that will analyze the company's working capital management based on its financial statements over the last 5 years. It aims to assess the company's financial position, profitability, and viability through financial ratio analysis and interpretation.
This document provides an overview of a study on working capital management conducted at Sejal Glass Limited. It includes:
1) An introduction outlining the purpose and scope of the study, as well as acknowledgements of those who guided the project.
2) A table of contents listing the different chapters covering topics such as the company profile, data analysis, findings, and conclusion.
3) Background information on working capital management, including definitions, objectives, and the operating cycle.
The document appears to be a student project report analyzing working capital practices at Sejal Glass Limited in order to make recommendations for improvement.
A project on analysis of working capital managementBabasab Patil
The document analyzes the working capital management of Dharwad Milk Union over the past 5 years. It discusses the company background, objectives of studying its working capital, methodology, findings and suggestions. The key findings are that inventory turnover ratio was better in 2008-09 than the past 5 years, and creditors payment ratio has improved recently. Suggestions include increasing debt turnover ratio and reducing the operating cycle to maintain sufficient working capital.
A project on working capital management in bhelProjects Kart
The document provides an overview of Bharat Heavy Electricals Limited (BHEL), a large Indian power equipment manufacturing company. It discusses BHEL's history, operations, quality certifications, product range, and power generation capabilities. Specific power projects completed by BHEL in southern and northern India are also listed. In under 3 sentences:
BHEL is a major Indian manufacturer of power generation and industrial equipment, with a history dating back to the 1950s. It has a wide range of thermal, gas, hydro, and industrial products and has completed numerous power projects across India. The document outlines BHEL's operations, certifications, products, power generation capabilities, and lists specific projects in southern and northern regions of India
Working Capital Management in Bajaj Allianz Life InsuranceSuresh kumar
This document appears to be a project report submitted by Suresh Kumar to the University of Pune to fulfill requirements for an MBA degree. The report evaluates working capital management at Bajaj Allianz Life Insurance. It includes an acknowledgment, declaration, index, and executive summary. The report will study concepts of working capital, analyze Bajaj Allianz's profitability, liquidity, and working capital position over five years. Secondary data sources like annual reports and interviews will be used.
Management of working capital and expense analysisSupa Buoy
This document provides an overview of Pam Pac Machines Pvt. Ltd., a joint venture company between Associated Capsules Group and IWK Verpackungstechnik that manufactures packaging machinery for the pharmaceutical and FMCG industries. It discusses Pam Pac's product lines of blister packaging machines and cartooning machines. It also outlines the company's mission, parent company Associated Capsules Group, organizational structure, and key departments like quality assurance, stores, vendor development, and electronics and maintenance.
Working capital refers to the capital required for financing short-term assets such as cash, inventory, and accounts receivable. It is also known as revolving or circulating capital. There are different types of working capital like gross working capital, net working capital, permanent working capital, and temporary working capital. Management of working capital involves maintaining optimal levels of current assets and current liabilities to ensure sufficient liquidity and an efficient balance between risk and profitability.
This document is a student project report on working capital management and cash management performance comparison between Arvind Mills Ltd. and Mafatlal Industries Ltd. It includes an introduction, problem statement, research design, methodology, data sources, time budget, chapter plan, and expected contribution. The student analyzed the companies' financial statements over the last 5 years to evaluate their working capital and cash management. The report provides context on the textile industry in India and an overview of the topics to be examined in the analysis.
A PROJECT REPORT ON WORKING CAPITAL MANAGEMENT AND CONTROLsanjay3017
This document provides an overview of the Indian pipe manufacturing industry and Welspun Gujarat Stahl Rohren Limited (WGSRL). It discusses the key factors driving demand in the pipe sector such as infrastructure development, replacement demand, and the need to expand oil and gas pipeline networks. It also outlines that the industry is raw material intensive and companies rely on imports. WGSRL is a leading manufacturer of steel pipes that caters to the oil, gas and water industries.
KPR Mill is one of the top five yarn producers and largest garment manufacturers in India. It has vertically integrated operations across the textile value chain. The company is increasing its yarn capacity by 60% in FY12 and will achieve 100% power self-sufficiency in FY13 by commissioning a co-generation cum sugar project. This will lead to higher capacity utilization and reduced costs. KPR has demonstrated strong revenue growth, superior margins, and high dividend payouts compared to peers. It is well positioned for further expansion with its innovative management practices and state-of-the-art facilities.
Management of Working Capital- Britannia Industries Ltd.Nikita Jangid
The document discusses working capital and its management. It defines working capital as the capital required for financing day-to-day business operations. Shortage of working capital can cause business failures while sufficient working capital is important for business success and liquidity. The document also discusses different types of working capital like permanent working capital and temporary working capital. It outlines the goals of working capital management as ensuring sufficient cash flow and balancing current assets and liabilities. Key factors that determine working capital requirements include the nature of industry, sales volume, inventory and receivables turnover, and the production cycle.
Rahul Chakraborty has over 6.5 years of experience working for Wipro Consulting Services dealing with international clients in telecom, retail, and utilities. He has skills in managing critical service functions such as change and release management, IT project delivery, and supplier management strategy. He has a background in computer science and information systems along with ITIL certification. His areas of expertise include negotiations with international suppliers, product/service reviews, IT strategy formulation, budgeting, procurement, and service chargebacks. He is looking for a strategic role providing business development experience.
This document discusses working capital assessment methods and factors. It defines working capital as the short-term funds used in a company's day-to-day operations, calculated as current assets minus current liabilities. It identifies sources of working capital and factors that affect working capital levels, such as the nature of business, operating cycle, and competition. The document also outlines methods for assessing working capital, like the operating cycle method, and provides an example working capital analysis for an export-oriented garment business.
The document provides background information on the First Book of Factoids, including its author Sam Vaknin and editor Lidija Rangelovska. It was first published online in 2005 and contains 20 chapters covering a variety of topics from A to Z. The document lists the book's contents and provides several website links for additional information on the author and related topics.
1) Bangladesh's main industries include textiles, jute, leather, and agriculture. The textile industry, especially garments, has grown significantly since the late 1970s.
2) The knit sector is more integrated and self-reliant compared to the woven sector, which relies heavily on imported fabrics.
3) Bangladesh has a competitive advantage in textiles due to its low labor costs and government support programs. However, the industry faces threats from increasing international competition and potential loss of trade preferences.
The document summarizes the ready-made garments (RMG) industry in Bangladesh. It states that the RMG sector has emerged as a key export industry since the 1970s, accounting for around 85% of Bangladesh's total export earnings and employing over 1.5 million workers. The sector benefits from having an abundant and cheap workforce that is easily trainable. While the industry has grown significantly, it faces challenges in adopting new technologies and ensuring proper working conditions. The document provides background on the origins and growth of the RMG sector as the largest exporting industry in Bangladesh and outlines the objectives of the study, which include analyzing the industry and relating knowledge to practical experience.
Project on study of employees job satisfaction, it can analysis all accepts. you can a good information through that.
and know the sanctification level of employees in the organization
Project on study_of_employees_job_satisfactionDivya Shree
The document provides an overview of the garment industry, including its history and development. It discusses the role of the Garment Industry Development Corporation (GIDC) in strengthening the global garment industry. It also outlines how computers are increasingly used in garment design, production, and marketing. The garment industry plays a major economic role in India, accounting for 14% of industrial production and 20% of exports. The industry faces both opportunities and challenges in the post-quota environment under WTO agreements. The government has initiatives to increase garment exports to $85 billion by 2010 and create over 12 million new jobs.
The garment industry in Bangladesh has grown substantially since the 1980s when the government undertook significant steps to promote exports. Ready-made garments now account for over 75% of Bangladesh's export revenue, employing around 3 million workers, most of whom are women. The industry benefits from cheap labor costs and low conversion costs. Bangladesh exports mainly to the US and EU and has trade relations through organizations like the WTO. The government has established export processing zones to attract foreign investment and further economic growth.
The textile and apparel industry has a long history in Bangladesh dating back to the 1970s. In the early years, the industry struggled but began growing in the 1980s as export-oriented garment factories increased. By 1999 there were over 2,900 garment factories. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) was formed as a lobbying group for the industry. Universities also began offering textile engineering programs to develop skills in the sector. While the industry has competitive advantages in low costs, it also faces weaknesses in areas like product development, marketing, and worker rights.
This document provides an overview of South China Bleaching and Dyeing Factory Limited, a textile company located in Bangladesh. It discusses the company's history, facilities, production process, organizational structure, and management systems. Key details include that the company has over 700 employees, produces woven and dyed fabrics, and partners with major international brands. The document also includes layout plans, production flow charts, and descriptions of various production departments and roles within the company.
1. Bangladesh's textile industry is a major economic driver, especially garment exports which have grown from $1 million in 1978 to over $20 billion currently.
2. The knit sector has a more complete value chain as 95% of fabrics and accessories are sourced locally, while the woven sector relies on 85% imported fabrics.
3. Both sectors would benefit from further developing backward linkages to reduce costs and lead times.
This document provides an overview of the strengths and weaknesses of Bangladesh's textile sector, with a focus on the ready-made garment industry. It discusses the history and growth of the sector since Bangladesh gained independence in 1971. While the garment industry has been very successful in providing jobs and exports, it faces challenges such as low wages, lack of labor protections, and low productivity compared to other countries. However, the sector remains important and there are opportunities to expand exports through market and product diversification. With continued improvements, the future of Bangladesh's textile industry remains promising.
Comparative study of compliant & non compliant RMGAzmir Latif Beg
The ready-made garment (RMG) industry of Bangladesh started in the late 1970s and became a prominent player in the economy within a short period of time. The industry has contributed to export earnings, foreign exchange earnings, employment creation, poverty alleviation and the empowerment of women. The export-quota system and the availability of cheap labor are the two main reasons behind the success of the industry.
The textile and garment industry is a major contributor to Bangladesh's economy, employing over 4 million people and accounting for 84% of exports. While the industry has grown significantly in recent decades, it faces challenges like worker safety issues and increasing competition. However, the future remains positive as Bangladesh focuses on sustainability efforts, innovation, and capitalizing on opportunities like capturing markets left by China. With continued investment and development, the industry is well-positioned for continued growth and success.
The Indian textile industry is one of the largest in the world, contributing significantly to India's economy by accounting for 14% of industrial production, 4% of GDP, 17% of export earnings, and providing employment to over 35 million people. The industry has grown since economic liberalization in 1991 and includes various segments like cotton, silk, wool, ready-made garments, and hand-crafted textiles. While India has strengths like raw material resources and low labor costs, weaknesses include labor productivity issues and technology obsolescence.
It could well be considered the beginning of the Golden Era for the Indian textile industry. The current year and beyond promises to be an excellent period of growth for the industry. In our recent interaction with industry leaders, a sense of optimism and confidence was quite evident. The Government is expected to announce its new textile policy with an ambitious target of achieving 20 per cent share of the global textile trade and helping the domestic industry attain a size of $650 billion by 2024-25 by focussing on investments, skill development and labour law reforms. The policy blueprint, termed the ‘Vision, Strategy and Action Plan for the textiles and apparel industry, lays thrust upon diversification of exports through new products and markets along with increasing value addition and promoting innovation and RandD activities. Dr. Rohit Agarwal "Golden Era of Indian Textile Industry" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2 , February 2019, URL: https://www.ijtsrd.com/papers/ijtsrd21374.pdf
Paper URL: https://www.ijtsrd.com/other-scientific-research-area/other/21374/golden-era-of-indian-textile-industry/dr-rohit-agarwal
This document provides information on the Indian textile and clothing industry. It discusses the fragmentation of the industry between organized and unorganized sectors. It outlines major facts about the industry, including its large contribution to India's economy and exports. The document also examines the growing market size of the industry and analyzes strengths, weaknesses, opportunities, and threats. Finally, it reviews government initiatives to promote the industry.
This project report summarizes work done on analyzing and minimizing spirality and shrinkage problems in knitted fabrics. It discusses raw materials used, yarn types and counts, subcontractors, and costs. It also provides an overview of the evolution of Bangladesh's knitting industry and its social and economic impacts. Key points are that spirality is caused by yarn twist and machine settings, while shrinkage is due to yarn swelling; both can be reduced through washing, drying, and fabric construction methods. The knitting industry is a major employer and exporter for Bangladesh.
Problem and prospects of garments industry in bangladeshkhan shamim
The document discusses the garments industry in Bangladesh, including its growth, impact, and challenges. It summarizes that the garments industry has experienced tremendous growth over the last two decades, becoming a major manufacturing and export industry. It now employs over 1.5 million women and has significant economic and social impacts. However, it also faces issues like low wages, insufficient government policies, and the challenges of globalization. The document examines the current problems and prospects to understand how to further improve the industry.
The document summarizes the Indian textile industry. It notes that the industry contributes significantly to India's economy through employment, exports, and GDP. India has a large raw material base as a top global producer of cotton, silk, jute and man-made fibers. The industry is fragmented with many small independent units. Exports are dominated by ready-made garments while the domestic market is growing. The government has implemented policies to modernize the industry and attract foreign investment. India has a cost advantage over competitors in textile production.
The document summarizes the Indian textile industry. It states that the industry is an important part of the Indian economy, contributing 14% to industrial production and employing over 35 million people. It also notes that the industry has seen high growth in output and exports in recent years. The industry benefits from India's large raw material base and presence across the entire textile value chain. The government has implemented several initiatives to support the industry through modernization, infrastructure development, and foreign investment promotion.
The document summarizes the Indian textile industry. It states that the industry is an important part of the Indian economy, contributing 14% to industrial production and employing over 35 million people. It also notes that the industry has seen high growth in output and exports in recent years. The industry benefits from India's large raw material base and presence across the entire textile value chain. The government has implemented several initiatives to support the industry through modernization, infrastructure development, and improving competitiveness.
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Working capital management @ gadag textile project report
1. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
EXECUTIVE SUMMARY
The project has been under taken under as the part of master of business
administration course as per the direction of Karnataka university dharwad. The
second year MBA students will take part in this project were the summer inplant
project for the period of two months and the project is related to finance and the topic
of this project is “The study of working capital management”
The Gadag co-operative textile mill ltd established in 1972 by late
shri.K.H.Patil at Hulkoti in Gadag district. It is producing main product as yarn. The
company started with a production cost of RS.220lakhs.It is started producing yarn in
the year 1973.
A G.C.T.M has an arrangement of different department of the dependent
parts of functions and their interrelation in the structure form to provide the necessary
efforts of groups of individuals will be directed towards a common objective. So as to
identify the problems of such a title and give suggestions and conclusions. In addition to
this concept studying the over all organization role of different department functions of
their respective departments, procedures and policies.
The project is mainly focuses on the industry profile, company profile, SWOT
analysis, annual report and about working capital and ratios. this project studies
different department at the Gadag co-operative textile mill ltd. The functions of each
department and the organization in the company along with it covers the duties and
responsibilities of all the staff members type of decision making followed by the mill
and it also includes quality policy export oriented unit etc of the mill.
DESIGN OF THE STUDY
Title of the study
BABASAB PATIL 1
2. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
“To study on working capital management” at The Gadag Co-operative Textile Mill
Ltd. Hulkoti”
OBJECTIVES OF THE STUDY:
1) To study the working capital management.
2) To know the sources of working capital.
3) To study the different components of working capital of the company.
4) To calculate the operating cycle of an organization.
5) To calculate the working capital of an organization.
6) To study the liquidity position of the company with the help of ratios.
METHODALOGY
BABASAB PATIL 2
3. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
PRIMARY DATA: The information collected from personal interaction with
manager and other staffs
SECOUNDRY DATA: The annual report of the company and company
website
INDUSTRY PROFILE
BABASAB PATIL 3
4. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
The Indian Textile Industry occupies an important place in the Economy
of the Country because of its contribution to the Industrial Output, Employment
Generation and Foreign Exchange Earnings. At present, the contribution of the textile
Industry to GDP is about 4 percent. The textile industry provides direct employment
to about more than 35 million people and is the second largest employment provider
in India next to agriculture. The contribution of this industry to gross export earnings
is about 31% of the country.
The Textile Industry is a self-reliant industry from the production
of raw materials to the delivery of final products with considerable value addition at
each stage of processing. The industry was delicensed in 1991 and under the current
policy no prior government approval is necessary to set up textile mills. The per
capita cloth availability in the country has increased from 24.1 square meters in 1991
to 30.7 square meters in 2000-01.The textile sector including the garment sector has a
continual increase in the FDI inflow from Rs.80.99 million to Rs.234.73million.
From growing its own raw material (cotton, jute, silk and wool) to
providing value added products to consumers (fabrics and garments), the textile
industry covers a wide range of economic activities, including employment generation
in both organized and unorganized sectors. Manmade fibers account for around 40 per
cent share in a cotton dominated Indian textile industry. India accounts for 15% of
world's total cotton crop production. And it is the second largest employer after the
agriculture sector in both rural and urban areas. India has a large pool of skilled low-
cost textile workers, experienced in technical skills. Almost all sectors of the textile
industry have shown significant achievement. India's cotton textile industry has a high
export potential. Cost competitiveness is driving the penetration of Indian basic yarns
and grey fabrics in international commodity markets. Besides natural fibers such as
cotton, jute and silk, synthetic raw material products such as polyester staple fiber,
polyester filament yarn, acrylic fiber and viscose fiber are produced in India.
From 1st January 2005, all textile and clothing products would be
traded internationally without quota-restrictions. And this impending reality brings the
issue of competitiveness to the fore for all firms in the textile and clothing sectors,
including those in India. With the dismantling of quotas in 2004 under mandate from
the Agreement in Textile and Clothing of the WTO, the focus has clearly shifted to
BABASAB PATIL 4
5. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
the future of the Indian textile and clothing exports. It is imperative to understand the
true competitiveness of Indian textile and clothing firms in order to make an
assessment of what lies over a period of time.
Global trade in Textile and clothing -India’s performance
During the MFN period, the textile exporters from industrial countries and those from
developing countries merely changed shares between themselves during 24 years .The
share of industrial countries declined by almost as much (19.2%) as was the gain in
the share of developing countries (18.8%). Clothing exporters, however, exhibit
significant changes, with the share of top exporters having declined by 13.8%.
New entrants have come in as well as some old ones have been knocked out. Of these
new entrants, most- if not all- are from developing countries, since the share of
industrial countries has declined during the period, and that of developing countries
has increased. The countries that are gaining share in clothing exports are the
ones whose industries are integrated to one or the other advanced country
through some policy-induced preferential arrangements. Mexico, Caribbean
region, East European countries and Mediterranean countries are capturing much of
the space vacated.
There has been a much deeper globalization in clothing than in textiles. Indeed, that
has been one of the principal reasons for the developed countries agreeing to an
eventual phase-out in the UR of negotiations. While in textiles, there was an
inexorable shift away from developed countries in 1973 to1997 and to developing
countries at large, in clothing the shift away from developed countries is increasingly
being grabbed by ‘preferred’ developing countries.
Thus, in clothing, the non-preferred group of developing countries is fighting amongst
themselves for a pie that is increasingly declining.
One should expect a much higher level of intra-industry and intra-firm trade in
clothing than in textiles. This is entirely compatible with the fact that it is the trade in
Clothing that is growing faster than that in textile.
And this trend is likely to deepen, as Clothing retailers consolidate, and Outward
Processing Trade (OPT) traffic increases. The Opportunity clearly lies much more in
clothing, though the caveat is the exporting.
BABASAB PATIL 5
6. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Country would have to achieve the ‘preferred’ status, and integrate its manufacturing
with that of an importing country in order to continue exporting to the restricted
markets. The pressure to export would intensify in the years to come since 80% of
additional output during 1995-2005 is expected to be located in developing countries.
On the other hand, only 50% of the additional fibre consumption would originate in
developing countries.
COMPANY PROFILE
COMPANY DETAILS:
Name of the mill : - The Gadag Co-operative Text
Mill Ltd Hulkoti.
BABASAB PATIL 6
7. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Famous name : - The G.C.T.M Ltd Hulkoti
Address : - The G.C.T.M Ltd Hulkoti
Post: Hulkoti 582205
Tq &Dist: GADAG
Karnataka
Phone no: 289042, 289371
Mobile: 9449570255
email:gadagcooptex@sanchar.net.in
Registered office : - Hulkoti
Tq &dist: Gadag
Registration : - The mill has been registered under
The Karnataka co-operative society
act 1959
Registration No : - RCS 2022/72-73
Establishment : - 08-07-1972
Production began : - 1973
Sales turn over : - 25 crores
Nature of business : - production and sale of yarn
Background of the company
BABASAB PATIL 7
8. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
The village hulkoti comprises of various sections of people and since long it has
been the cradle of co-operative movement in having the first primary credit co-
operative society established in the erstwhile Bombay state. The occupation of the
village is mainly agriculture. The farmer and farm laborers form a nucleus of this rural
area. The main crops grown around hulkoti are jowar, cotton, groundnut, chilly and
other pluses.
Since there are no other major irrigation projects, dry land cultivation is the only
way for the farming community. Agriculture produce particularly cotton, groundnut,
jowar etc. were being marketed to the tune of Rs/90 to 100 crores per annum in and
around gadag. Prior to the emergence of the Gadag Co-operative cotton sale Society
Ltd., Gadag farming community was exploited by private traders and commission
agents.
It is at this juncture, realizing the need for upliftment of mach neglected farmers
community and to improve the lot of rural area, Late Shri K.H.Patil, a son of soil and
veteran co-operator devoted he time fully for the establishment of
a co-operative network around hulkoti providing various amenities and scope for
development of farmers which went ahead against all odds both traditional and political
till he transformed a vision into a reality. This Endeavour had transformed into worthy
institution located on either side of highway no 63 between hulkoti and Gadag
After successful setting up of Ginning and pressing unit by the Gadag Co-
operative cotton sale society, the next ambition of our Co-operator, was to establish a
spinning Mill of 25,000 spindles capacity which would consume the main agriculture
produce by paying remunerative prices to cotton growers and to save the farming
community from the cluthes of private traders
It is with this ideal background The Gadag Co-operative mill was established in
the year 1972 with the project cost of Rs 220 lakhs and commenced its trail production
in April 1973 we have a feather in the cap for having installed 25000 spindles capacity
mill in a record time in the entire country.
MODERNIZATION PROGRAM
After a period of 18 years there was a need for upgrading technology
of certain machines and to eater to the export needs, the Management proposed a
Modernization Programme at a cost of Rs. 429.00 Lakhs. The term, lending
institutions sanctioned Rs. 236.69 Lakhs and the balance Rs. 192.31 lakhs was from
BABASAB PATIL 8
9. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
the internal resources of the Mills. The Mill replaced Carding Machines, winding
machines and added one Open End Spinning machine and one Imported Auto Conner
of latest technology. With the implementation of this Project there was improvement
in the productivity and the quality of the finished product.
To meet the standards of the quality yarn in demand, both in domestic as well as
in International markets, the Management of the Mills thought it inevitable to launch
another Modernization Programme covering Machinery from blow room to Spinning
was planned. This programme, with an estimated cost of Rs. 920 Lakhs was approved
by the national Co-operative Development Corporation (N.C.D.C.) and the Government
of Karnataka.
As part as Modernization Programme, N.C.D.C. has sanctioned Rs. 736.00
Lkahs, while Government of Karnataka contributed Rs. 136.00 Lkahs as share capital.
The rest amount of Rs. 46.00 Lkahs was mobilized from Members of the Society
through shares.
With successful implementation of 2nd Phase of Modernization Programme, the
latest version of Auto leveler Machinery at Carding and Drawing Sections are inducted
and commissioned. Following this, efforts are being made to raise the productivity to
high standards. Further, completion of Modernization enables us to qualitative
requirement of requirement of International market Standards.
BASIC CONCEPTS USED IN TEXTILE MILL
Fiber : A slender filament ; a fine thread like part of a
substance
.
Kapas : Cotton with seeds and impurities
Lint : Cotton free from seeds and impurities
Ginning : The mechanical process of separating the cotton
BABASAB PATIL 9
10. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Fiber from seeds
Bale : A bundle or packages of cotton compressed and
Bound with cord or wire weight round about 170
Kgs.
Spinning : The process of drawing out and twisting the fiber
of cotton, Wool etc. Into thread or yarn either by
hand or machine.
Spindles : The rods or pins of spinning machine known as
The ring frame holding the bobbins on the which
yarn wound as it is spun . Such spinning is
expressed in terms of the number or spindles or
rotors.
Rotors : In the modern of spinning known as the open end
spinning instead of spindles rollers are used.
Yarn : A textile thread obtained by twisting of
consecutively Disposed and Straightened
ultimate composite fibers.
Hank & cones: Yarn is supplied to the market in to different
forms hank yarn and cone yarn Hank yarn is
convenient form of bleaching, and transport but
needs winding before placing on the loanIt is
used by hand loom weavers .Cone yarn however
eliminates the Need form winding and can be
directly used in power looms .
Count : A count is measure of thickness or fitness of yarn
The various counts groups manufactured are 10s,
20s, 24s, 30s,32s,34s,40s, 60s, 80s 100s both in
BABASAB PATIL 10
11. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Hank and Cone. Lower counts indicates coarse
yarn and higher counts indicates fine Yarn
Objectives of the company
To satisfy customers by integrating their needs in the mill yarn.
To sustain a mill of able and committed employees and provide opportunities for
growth and development.
To improve the process of managing mill affairs through proper planning, timely
improvement of plan and performance review.
To faster culture innovation with the application of new ideas and methods to
solve the business problems.
To provide the employment opportunities to Men& women of rural area
Nature of business carried
The first step the company purchases the raw material i.e. cotton from the farmers
then it mixes it with different quality of cotton according to the quality of yarn they
needed.
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12. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
The next step is cleaning the minor part and spraying the water to it. Then it kept
one day in cool place. Next step it goes to the major cleaning part it goes to all the
cleaning of the cotton.
The next process is carding here the cotton will become smoothly and white.
Next goes to the simplex method in this method cotton becomes big layers and it makes
the group of layers
The next process is procedure is rolling and grilling here the big layers are rolled
and it is separated from the group and comes in the form of loose thread and next
process is drafting and twisting and the thread becomes strong and it comes layer by
layer in the form of thin yarn. The next is nothing here if thread goes into two parts the
machine will join it and it is called noting process.
Finally after all these process the raw material is converted into the finished
goods which are in the form of yarn.
VISION MISSION QUALITY
VISION: To be a premier textile company with a clear focus to become globally
competitive, through growth and technology up gradation committed to excellence in
quality service and co-operatives
MISSION: To purchase the creation of values for all its customers, share holders,
employees and society at large
BABASAB PATIL 12
13. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
QUALITY POLICY: The company will give main importance to the satisfaction
of the customers by producing good quality yarn and produce yarn to meet with the
market position the company will not see with the quality of raw material. The company
is also having a quality control department to check out the yarn quality in overall
stages to take any corrections required immediately.
PRODUCT PROFILE
The following table indicates the production performances/ progress since
2003-04 to 2007-08
sl Particulars 2003-04 2004-05 2005-06 2006-07 2007-08
A. Production
1. Cotton consumed 33.37 35.20 32.31 32.49 32.39
kgs in lakhs
2. Value in lakhs Rs. 1894.90 1812.25 1375.00 1460.90 165615
3. Yarn produced in lakhs 28.01 29.57 26.80 27.53 27.83
kgs
BABASAB PATIL 13
14. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
B. Cac capacity Utilization an
productivity
1. Spdl utilization % 63.57 71.39 73.49 73.97 69.81
2. Production 84.00 82.37 82.15 83.15 86.20
(converted to 40s)in
gram per spindle
THE MARKET AREA
The mill has its market overall the different areas of the country like N.H.D.C.,
K.H.D.C., malligov, sollapur, ichalkaranji, Bangalore.
OWNERSHIP PATTERN
The G.C.T.M. ltd is situated in the village hulkoti of Karnataka. Shri D.R.Patil and
H.M.Soppin are the chairman and vice chairman of the G.C.T.M. hulkoti.
S.L. Name Designation
No:
1 Shri D. R. Patil Chairman
2 Shri H.M. Soppin Vice Chairman
3 Shri R.M. Mulimani Director
4 Shri V.B. Inamati Director
5 Shri T.B. Mundavad Director
6 Shri C.B. Karikatti Director
7 Shri V. R. Naganur Director
8 Shri S.B. Balaraddi Director
9 Shri S.B. Bhasetti Director
10 Shri S.C. Kanavi Director
BABASAB PATIL 14
15. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
11 Shri S.C. Huilgol Director
12 Shri G.N. Patil Director
13 Shri A.S. Patil Director
14 Shri R.B. Hosamani Director
15 Shri B.H. Dyavanashi Director
16 Shri S. K. Kuradagi Director
17 Shri D.S. Odugoudar Director
18 Shri R.Y. Director
Kempalinganagoudar
General Manager
District Industries center Gadag Director
Deputy Director of Handlooms
And Textile Inviters
Joint Registrar of
Co-operative societies Director
Shri T. Shantaveerappa
Managing Director Director
COMPETITORS INFORMATION
The competitors for G.C.T.M are
BABASAB PATIL 15
16. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
• Banhatti co-operative spinning mill. Banhatti.
• Raitara sahakari noolina girani. Rannebennur.
• The farmer’s co-operative spinning mill ltd. Hulkoti.
• Sangoola mills solapur.
INFRASTRUCTURE FACILITY
Head office: The head office of G.C.T.M is located in hulkoti the function of finance,
marketing and raw material procurement are carried by head office only it doesn’t have
its branch.
Land: The mill is established in the rural area near gadag at village hulkoti with
approval of the site selection committee. The total area covered is of 90528.25 sq ft out
of which build up area is 643.45 sq mt. there is the beautiful garden plantations
pollution free and healthy environment in the mill area.
Other facilities: The mill has provided an quarters facilities to the workers and there
is an rest room for workers and drinking water facility and also cultural activities in
independence day, republic day, and workers day will be held and there is also an
canteen facility provided by the mill
AWARDS
BABASAB PATIL 16
17. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
The mills has got an some awards for continuously three years in the year 1978-79,
1979-80, 1980-81, the mill has ranked first for India and second for Asia.
The two awards were pretend to the mill as per the techno-economic data
presentation which is made by the mill in the Pune on 10th April 2005 the award for the
operating net profit per installed spindle and operating cash profit per installed spindle
has got
WORK FLOW OF MILL
MIXING: Bales of different counts are mixed along with usable wastes, on
different percentage in the mixing bins, cotton bales of different quality are opened and
stacked, called stock mixing, 24 Hours for conditioning before it is process further.
BLOW ROOM: Cotton in losses form is spending on mixing bale openers and
taken further of different cleaning points where the cotton is beaten and trash is
extracted. Finally converted into Lap form of different length, weigh per yard,
depending on the count.
CARDING: Lap form Blow room feed to Cards where the cotton is converted from
Lap form to sliver form. During this process trash, short fibers and other impurities are
extracted the different cleaning points, like licker in, Flats section Units. The sliver is
produced of different Hank depending on the counts.
PREPARATORY: Cards sliver is drawn through different drafting Rollers and the
sliver is elongated and increasingly the length of the sliver and radiating in the cross
section by passing through different drafting rollers and convert into a suitable package
by giving little twist to the material called Rove and wound on a Bobbin.
BABASAB PATIL 17
18. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
SPINNING: The bobbins from the Preparatory process are feed to the drafting rollers
as final treatment to the material and further increasing the length and reduction the
cross section of the material. This process the material process through Ring and
Traveler and would on the bobbin to form a suitable package the giving optimum of the
twist depending on count of the yarn.
CONE WINDING: Here the yarn spun is cleaned by passing through cleaning
devise called slub catcher and would through suitable package of required length and
weight in the form of a Cone.
DOUBLING: Here two yarn of the same count are doubled by giving necessary
twist in the form of package called bobbins.
REELING: Here single yarn or doubled yarn are wound on the swifting of the
machine called Reel in the form of Hank and are make in the form of Knots. There are
two types, a Plain or Cross Reel.
BUNDLING & BALING: Here the number of knots plain or cross is in a press
depending on the count and weight of the boundless are as per requirements. Bundles
are pressed in the form of Bale depending on the count, Plain or Cross as per the
requirement from the market.
PACKING: Here number of cones or cheeses is bagged depending on the count of
the yarn number of cones and weight of the cones. Depending on the requirement of the
market.
BABASAB PATIL 18
19. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
DEPARTMENTAL STUDY
FINANCE DEPARTMENT
Finance department is the department which looks after the financial position of the
mill and takes over the investment decision, finance decision the mill has started with
its project cost of Rs.220 lakhs which contributed of Rs. 40 lakhs from members share,
Rs. 80 lakhs is of government share and remaining of Rs 100 lakhs is of term
loan(I.F.C.I)
MEMBER AND SHARE CAPITAL
No of share Paid up share
Sl.no Category holders Capital
1 “A”class 3014 Rs.107.47 lakhs
((individual/society)
1 Rs.015.00 lakhs
2 “B” Class (K.A.I.C)
1 Rs.695.26 lakhs
3 “C” Class (State govt)
TOTAL 3016 Rs.817.73 lakhs
BABASAB PATIL 19
20. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Mill has funds that may be raised
1) By issue of Shares
2) By receiving deposits from members.
3) By raising loans
4) By entrance fees
5) By accepting donations, subsidies and grants.
6) By commercial institutions.
After starting of mill after the 18 years the mill has been modernized at cost of
Rs. 429 lakhs the leading institutions has sanctioned of Rs.236.69 lakhs and remaining
balance of Rs.192.31 is from the mill itself and 2nd time modernization has done of Rs
920 lakhs which the amount is given by the N.C.D.C.( national co-operative
development co-operation) and government of Karnataka as the part N.C.D.C has
sanctioned Rs.736 lakhs and 136 lakhs by govt of Karnataka and rest of amount Rs. 46
lakhs is from members of society
The mill is invested of Rs 1771.45 lakhs and of Rs. 40 lakhs share capital to the state
government and paid the loan amount of Rs.100 lakhs of Rs. I.F.C.I term loan and also
paid the first modernization loan of Rs. 236.69 lakhs
The mill will be raised its fund by issuing of share, receiving deposit from members
by taking loans and debentures and also accepting subsidies and donations and the
sources of finance for the mill is from the K.C.C bank, N.C.D.C. loan, and bijapur
D.C.C. bank ltd.
HUMAN RESOURCE DEPARTMENT
The human resource department of the mill is recruiting, selecting seeing welfare of
the employees and providing necessary facilities for the workers. Were as in the Gadag
BABASAB PATIL 20
21. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
co-operative textile mill there are 744 workers here 85 are staff members, 650
workers and 9 are securities
The facilities for the worker are transportation, medical, canteen, provident fund,
gratuity There are 3types of workers are there first selected (fresh) workers will be
taken as a trainee and in trainee there are two stages first stage trainee and second stage
trainee and after trainee they will be treated as badli and then as permit.
The mill works for 24 hours which is in 3 shifts no women workers are permitted
for night shift and the labour turnover is of 30 to 35 the over time duty is also there and
will be paid in double as per there working hours
The salary for the workers are paid in as the basic salary + ESI (employee state
insurance) + provident fund of 12% and bonus of 8.33% will be given and salary for 1st
stage trainee is Rs.60 and for 2nd stage trainee Rs.65 and for badlis it depend on there
work which is of Rs.75-103 and for permits also depend on there work load and shift
allowance of Rs.250 for 26 days and of Rs 312 is attendance allowance for 26
attendance per month. The recruiting of staff will be done by managing director, general
manager, asst manager and H.R. manager and other workers will be selected by the H.R
department
The G.C.T.M also provided quarters for workers with rent of Rs.20 per month and
has a transportation facility from Gadag to hulkoti and in the G.C.TM. the cultural
activities also be held on independence day republic day, and on workers day.
PRODUCTION DEPARTMENT
The G.C.T.M. is the mill which produces the yarn which are in of two types one
is in cone and another as hank .The product has been done from cotton to final product
i.e yarn. In the mill it has purchased machines from m/s lakshmi from coimbatore
The mill works 24hour of its production and it has 3shifts the first shift is handled
by production manager and 2nd shift by deputy spinning master and 3rd shift is handled
by spinning supervisor and the has 7500kg of daily production
BABASAB PATIL 21
22. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
PROCESS OF PRODUTION
MIXING: Bales of different counts are mixed along with usable wastes, on
different percentage in the mixing bins, cotton bales of different quality are opened and
stacked, called stock mixing, 24 Hours for conditioning before it is process further.
BLOW ROOM: Cotton in losses form is spending on mixing bale openers and
taken further of different cleaning points where the cotton is beaten and trash is
extracted. Finally converted into Lap form of different length, weigh per yard,
depending on the count.
CARDING: Lap form Blow room feed to Cards where the cotton is converted from
Lap form to sliver form. During this process trash, short fibers and other impurities are
extracted the different cleaning points, like licker in, Flats section Units. The sliver is
produced of different Hank depending on the counts.
PREPARATORY: Cards sliver is drawn through different drafting Rollers and the
sliver is elongated and increasingly the length of the sliver and radiating in the cross
section by passing through different drafting rollers and convert into a suitable package
by giving little twist to the material called Rove and wound on a Bobbin.
BABASAB PATIL 22
23. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
SPINNING: The bobbins from the Preparatory process are feed to the drafting rollers
as final treatment to the material and further increasing the length and reduction the
cross section of the material. This process the material process through Ring and
Traveler and would on the bobbin to form a suitable package the giving optimum of the
twist depending on count of the yarn.
CONE WINDING: Here the yarn spun is cleaned by passing through cleaning
devise called slub catcher and would through suitable package of required length and
weight in the form of a Cone.
DOUBLING: Here two yarn of the same count are doubled by giving necessary
twist in the form of package called bobbins.
REELING: Here single yarn or doubled yarn are wound on the swifting of the
machine called Reel in the form of Hank and are make in the form of Knots. There are
two types, a Plain or Cross Reel.
BUNDLING & BALING: Here the number of knots plain or cross is in a press
depending on the count and weight of the boundless are as per requirements. Bundles
are pressed in the form of Bale depending on the count, Plain or Cross as per the
requirement from the market.
PACKING: Here number of cones or cheeses is bagged depending on the count of
the yarn number of cones and weight of the cones. Depending on the requirement of the
market.
The mill has 32.39 lakh kg of cotton has consumed in 2007-08 and 27.86 lakh kgs
of yarn is produced and 69.81% of spindle has been utilized
BABASAB PATIL 23
24. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
PURCHASE DEPARMENT
The purchasing of cotton is made through the conducting business committee
meeting were as the purchasing of cotton is made on every weekly of 500 to 600 bales
were as every one bale consists of 165 kgs the mill purchases different variety of cotton
such as NH44, J34, MBCH, BHARAMA, 26MM, and 28MM
The purchase of cotton is made from local which is at open auction market by the
Gadag co-op cotton sale society, T.A.P.C.S.M of annigeri were as these local cotton is
graded by the A.P.M.C authority. The purchases are also made from CCI (cotton co-
operation of India, maharastra co-operative federation, shanthi textile Mumbai, baradia
cotton company Mumbai and B.M. kollar from gokak
The price for the local is more of Rs.100-150 than the market rates and were as the
department purchase right material, right quality, and right quantity of cotton for the
mill and the mill collects the sample and makes the laboratory test and make sure of
quality which they requires and make business committee meeting and gives order of
purchasing and the payment of purchased material is made after 30 days of purchasing
to the suppliers
STORE DEPARTMENT
Objectives of the Stores Department :
1) Concentrating towards smooth running of the production process.
2) Facilitating all required equipments on time .
3) Reduction of Inventory equipments on time .
4) Working like a traffic signal to signalize to all equipments.
BABASAB PATIL 24
25. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
5) Proper maintenance of all equipments
The mills storage has divided in 2 sub department which one is of material store and
general stores and there are 11000 items are maintained in these department and the
mill has an 7500 metric ton of storage capacity and stock of 2000 metric ton of capacity
in godown. The store department’s construction costs of Rs 13.18 crores and the
department is using two ledgers one is material receipt ledger and material issued
ledger.
QUALITY CONTROL DEPARTMENT
FUNCTION OF THE QUALITY CONTROL DEPARTMENT :
Random lab weight checking
Within lap variation
Cleaning efficiency
Waste study speeds
Wrapping checking
Naps study
Uniformity checking
Idle spindle
Top roller pressure checking
Rewinding study
Gauge and tension weight checking
Knot inspection
Knot weight checking
BABASAB PATIL 25
26. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
This is the department which checks out the quality of the cotton and the
produced yarn in the mill. The department which checks quality before purchasing of
cotton by taking sample from supplier. the G.C.T.M has its laboratory for testing of the
cotton and the lab has installed of 1.25 crore worth of machines which is of
computerized machines the quality control also helps in minimizing cost and improves
in working condition it also helps the G.C.T.M to know the cost of there product
The cotton testing is having some steps of testing of cotton the cotton testing is
made on H.V.I (high volume instrument) the testing of material is made out of one bale
half kg will be taken testing is made of its length, strength (grass per tex), informative
ratio, maturity ratio the mill is using 26mm type of cotton for coarser, 28mm for 30s,
34s, and 40s yarn, and 31mm for 60s and above.
In blow room lap weight checking its speed and settings cleaning efficiency and
next in carding department checking of the waste and C.V%(coefficient variation)
unevenness testing 120mtrs of sliver and variation of length is made by oster testing
monthly there will be wheel checking and next drawing is made and in drawing
wrapping checking is made it is of weight checking and study of breakage and setting of
an weight is by automation and next in simplex department spindles are checks hanks
are also checks and its stretching percentage is tested and in spinning department
checking of single yarn strength and double yarn strength and checks yarn fast per kms
and next is of winding which in winding it is made of rewinding of auto counts and
makes cone weight checking and next is reeling were as knot has been tested which is
of starting end to finishing end has been checked and next is doubling in this checking
for the covering of doubling and lastly baling and packing which checks the bale
weight, packet weight, bundle weight and tare weight checking is made
MARKETING DEPARTMENT
BABASAB PATIL 26
27. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
The marketing department has kept an long relationship with its customers from
purchasers and suppliers. The mill manufacture hank yarn and cone yarn as per the
market demands the sale of hank yarn and cone yarn is of 40:60 the daily production of
yarn is about 7500 kgs
Were mill works 24 hours for all seven days a weak
The selling of yarn is given to the weavers co-operative apex organization and
Karnataka handloom development corporation the mill gets order by phones by there
own sales depot and by local agents. The marketing department fixes the price of yarn
before fixing of price the department look after the total cost of production and market
demand and checking competitors price rate and quality and customers ability of
purchasing
The mill has direct and indirect channels of distribution were as in the direct channel
is from direct mill to the traders and indirect channel it is from mill to the agents and
then to the customers
ADMINISTRATIVE DEPARTMENT
The administrative department is the department which looks after the payment
of salaries, income tax purchasing and the department which maintains the files and
records etc. up to the date and collecting and presenting data of record and the
department which maintains office and provides the necessary required facilities
The administration department which decides on giving yearly bonus and to
provide the finance to all department and the department which conducts the meeting,
implementing the polices, controlling of different department and finally it is a
department which controls over all the activity of the mill.
MAINTENANCE DEPARTMENT
It is the department which has an relationship with the production
department. This department helps in maintaining of plant and machinery which to
work properly. If there is of any cause in machines the technicians are there to look
BABASAB PATIL 27
28. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
after and make repairs and maintain and look over all machines daily the department
keeps the stock of important spare parts of machine and it maintains.
The department which looks over the blow rooms its new lines, pre opener,
mbo, mono-cylinder, unimix, ERM, VXL, in blow room these all machines will make
cleaning for every 10 days and while cleaning if there is any repair then it that part will
make repair if it is need of replacement it will be replaced. In carding room half setting
is done for once in 15 days and full setting is done once in 3 months and larrikin wire
changing has been done for every 9 months
In the simplex department the general cleaning will be done for every 15 days
and in spinning department there is also general cleaning will be done for every 10 days
and spindle oil changing for every 6 months and spindle gauge also for 6 months and in
winding general cleaning has been done once in a week and spindle servicing is done
once in 30 days and in reeling oiling will been made once in a month and in packaging
cleaning once in a month will be done like these the maintenance department will
maintain the all department of the G.C.T.M.
SWOT ANALYSIS
STRENGTHS
1) Good reputation in the market
BABASAB PATIL 28
29. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
2) Good network of dealers
3) Well connected with roads
4) Well established in infrastructure facilities
5) 45% share capital given by the government
6) New specialized types of machines
7) Good support from the farmers as well as from the society
8) Financially strong
WEAKNESSES
1) No nation wide brands
2) Less sales promotion activities
3) Large work force
4) Partly automated
5) Lack of R&D
6) Low labour productivity
7) Not concentrating towards competition
OPPORTUNITIES
BABASAB PATIL 29
30. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
1) Land is available for expansion
2) Company can tie with other reputed company
3) Existence of a large market
4) Possibility of 100% automations
5) Market expansion
6) They are shortly getting the ISO 9001
THREATS
1) Decreasing in agricultural production
2) Globalization and liberalization
3) Cut through the competition
4) Taste and fashion of customers turning towards the ready
Made Garments
5) Negligence of Government as well as less guidance and low
Support from the Government
WORKING CAPITAL
MEANING AND DEFINITION OF WORKING CAPITAL
BABASAB PATIL 30
31. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Working capital is the amount of funds which a company has to finance its day to
day operations it can be regards as the part of capitals which the capitals is basically
classified into fixed and working.
Fixed capital is normally invested in fixed assets and working capital in current
assets. It is used in day to day operations. These are the funds that are invested in
current assets. The form of these current assets keeps on changing. Ex: Raw material to
work in progress to finished product. , so it is also called circulating capital.
A study of working capital is of major part of the external and internal analysis
because of its close relationship with the current day to day operation of the business.
Working capital consists of broadly for that the assets of a business that are used at
related current operation and is represented by raw material, stores, work in progress,
and finished goods merchandise, bills receivable.
Definition of working capital
Gerstenberg
“working capital means current assets of company that are changed in the
ordinary course of business from one form to another, ex: from cash to inventories,
inventories to receivables, receivables into cash”
BABASAB PATIL 31
32. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Shubin
“ Working capital is the amount of funds necessary to the cost of operating the
enterprise. Operating expenses involve investment in current assets, payment towards
overhead and expenses. Investment made in these heads is classified as working
capital”.
J. smith
“ The sum of the current assets is the working capital of the business”
’’WORKING CAPITAL = CURRENT ASSETS – CURRENT LIABILITY”
CONCEPT OF WORKING CAPITAL
There are two concepts of working capital that are:
1) Balance sheet concept
2) Operating cycle concept.
1) Balance sheet concept:
BABASAB PATIL 32
33. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Working capital as per this defined in terms of current assets and current liabilities.
Balance sheet concept further classifies working capital into a) gross and b) net working
capital.
a) Gross working capital: it refers to total investment made in current assets. It is also
called circulating rotating from one head to another. Ex. Cash to raw material, raw
material to finished products, finished products to debtors, and debtors to cash. This
concept stresses on quantity aspect; i.e. to refer to total investment made in different
current assets. Bonneville and beway have defined gross working capital as ’’ any
fund received which increases the current assets”.
b) Net Working capital: as per this concept working capital is the difference between
current assets and current liabilities. This concept stresses on quality aspect of
working capital. The difference between current assets highlights on liquidity aspect
and quality of current assets. A firm that has excess of current assets over liabilities is
said to possess adequate liquidity. On the contrary firm that has excess of current
liability over current assets means it does not have adequate liquidity. It means that
part of current assets of such firm are financed through fixed assets.
2) Operating cycle concept:
Operating Cycle or Working Capital Cycle indicates the length of time between
affirms paying for raw materials entering into finished stock and receiving cash on the
sales of such Finished Stock.
This operating cycle differs from firm to firm. Longer the operating cycle greater
will be the amount of Working Capital required and vice versa. Thus it plays an
important role in determining the Working Capital needs of a firm.
BABASAB PATIL 33
34. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
OPERATING CYCLE CHART
Cash Raw Materials
Debtors
Sales Finished good Work In
Process
Operating Cycle is the time duration required to convert sales, after the
conversion of resources into inventories, into cash. The operating cycle of a G.C.T.M
involves three phases.
1. Acquisition of resources such as raw material, labour, power and
fuel etc.
2. Manufacture of the product which includes conversion of raw
material into work-In- progress into finished goods.
3.Sales of the product either for cash or on credit. Credit sales creates
book Debts for collection.
In the THE GADAG CO-OPERATIVE TEXTILE MILL LTD (manufacturing
concern), the working capital operating cycle starts with the purchase of raw materials
and ends with the realization of cash from the sale of finished products. It is also
BABASAB PATIL 34
35. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
called as cash conversion cycle, production cycle etc. It involves the purchase of raw
materials and stores, its into stocks of finished goods through the work-in-Progress
with the progressive increment of labor and service costs, conversion of finished
goods (Yarn Products) into sales, Debtors and receivables and ultimately realization
of cash and this cycle continuous again from cash to purchases of raw material and so
on.
CLASSIFICATION OF WORKING CAPITAL
Working capital can be classified on the basis of concept and on the basis of time.
Various types of working capital are as follows
BABASAB PATIL 35
36. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
KINDS OF
WORKING
CAPITAL
1. ON THE 2. ON THE
BASIS OF BASIS OF
CONCEPT TIME
GROSS NET TEMPORAR
PERMANEN
WORKING WORKING Y OR
T OR FIXED VARIABLE
CAPITAL CAPITAL
REGULAR RESERVE SEASONAL SPECIAL
1) On the basis of concept :
Working capital on this basis of concept is classified into
A) Gross working capital: It refers to total investment made in current asset.
Current assets are the asset which can be converted into cash within a short period
of an accounting year. Current assets include cash, debtors, bills receivables and
short term securities etc.
B) Net working capital: It is the difference between current assets and current
liabilities. Current liabilities are those claims of outsiders which are expected to
mature for payment within an accounting year and include creditors, bills payable
and outstanding expenses. Net working capital can be positive or negative.
Positive net working capital will arise when current asset exceeds current
liabilities. A negative net working capital occurs when current liabilities are in
excess of current assets.
2) On the basis of time :
Classification of working capital in this case is made on the basis
of time for which investment is required. Kinds of working capital in
BABASAB PATIL 36
37. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
this category are:
1) Permanent : Some portion of working capital always remain permanent or fixed.
This refers to minimum investment a firm has to make and keep in certain current
assets. Firm has to always maintain minimum cash balance, inventory, debtors etc.
as there current assets are required permanently. They are normally financed
through long term capital.
Such permanent working capital is further classified into
a) regular and b) reserve
a) Regular: regular permanent working capital is used in
routine business operations.
b) Reserve: reserve working capital refers to some portion of working capital that is
kept as reserve to meet any contingency.
2) Temporary working capital: required of such capital varies or fluctuates depending on
season. Its requirement is not continous it is normally finance through short term
sources, like overdraft, cash credit and other short term liabilities.
Temporary working capital is further classified into:
A) Seasonal working capital: requirement of working capital is based on particular
seasons
ex; winter, summer or festival seasons etc during these seasons there will be
additional demand for the products. To meet out such demand firm has to make
additional arrangement of working capital.
B) Special working capital: requirement of such working capital is necessitated to meet
demands of special occasion’s ex. Occasion of world cup cricket, Olympics, kumba
mela, elections. During these special occasions demand for goods and service will
increase. To meet such special demand firm has to make temporary arrangement of
working capital
DETERMINANTS OF WORKING CAPITAL
BABASAB PATIL 37
38. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Requirement of working capital differs from one firm to other. This is because of
business conditions and policies of conducting business differ. Working capital required by
each from is determined by following factors.
1) Nature of business: important factor that determines requirement of working capital is
nature of business a firm is undertaking. Firm that are engaged in production and marketing
need more working capital compared to the firm that are in trading or service oriented
business. This is because manufacturing units need more current assets compared to service
oriented units.
2) Size of business: Size of the business obviously determines the requirement of the
working capital bigger the size more is the requirement of the working capital. Larger the
scale of operations, larger the investment required in current assets.
3) Operating cycle: Operating cycle means period from which investment is locked up in
different operations. Longer the period of inventory holding, work in progress, finished
goods etc more is the investment needed in the operations. This necessities more
investment in current assets.
4) Stock turn over: stock turnover refers to number of times stock is turned over that is it
refers to sales. Quicker the stock turn over (quick sales) less is the working capital. Slow
pace of stock turnover demands more investment is locked up in operation.
5) Credit policy: Credit policy of the firm will influence requirements of working capital.
Firms that offer liberal credit to the debtor have make more investment in production
operations. Such firms need more working capital to keep their production operation
continuous. Requirement of working capital will be much more if the firm buys on cash and
sells on credit. On the contrary firms that buy on credit and sell on cash basis need less
working capital.
6) Production policy: Firms that undertakes all production operations within the organization
need more working capital. Such firms have to make investment to manufacture every
component or part. On the contrary, firms which undertake outsourcing that is buying some
of the components or parts from out side agencies need less working capital.
7) Growth of business: Firms that are experiencing growth need more working capital. Such
firms have to constantly increase their production levels. To meet rising needs of sales
targets. They need to continuously increase investment in current assets.
8) Earning capacity and its appropriation: firms that earn sufficient profits and invest a portion
of profit in business needs less working capital. Ploughing back of profits and accumulated
reserves will minimize dependency on external capital for working capital needs. On the
BABASAB PATIL 38
39. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
contrary firms that follow liberal divided policy are firms that do not have adequate surplus
need to borrow more to meet regular working capital needs.
Needs of Working Capital:
The need for working capital to run the day-to-day business activities cannot
be overemphasized. We will hardly find a business firm which does not required any
amount of working capital. Indeed, firms differ in their requirements of the working
capital.
The firm’s aim is that maximizing the wealth of shareholders. Earning a
steady amount of profit requires successful sales activity. The firm has to invest
enough funds in current assets for generating of sales activity. Current assets are
needed because sales do not convert into cash instantaneously. There is always an
operating cycle involved in the conversion of sales into cash. Therefore Working
Capital required for:
1) To meet the cost of inventories including total of raw materials purchased parts,
operating
Supplies, work in progress, finished goods.
2) To pay wages, salaries, for indirect labor, clerical staff, managerial and
supervision staff.
3) To meet overhead costs, including those of maintenance services activities, fuel,
power charges, taxes and general expense administration.
4) To bear the expansion (with regard to promotion of sales) e.g. expenses on
packing, advertisement, salesmanship, Sales Servicing, After requires, Credit
Facilities, Delivery Services, etc.
IMPORTANCE OF WORKING CAPITAL
Even though the skills for maintaining the working capital are somewhat
unique, the goals are the same-viz. to make an efficient use of funds for minimizing
the risk of loss to attain profit objectives.
BABASAB PATIL 39
40. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Firstly, the adequate of working capital contributes a lot in raising the credit-standing
of a corporation in terms of favorable rates of interest on bank loan, better terms on
goods purchased, reduced cost of production on account of the receipt of cash
discounts, etc.
Secondly, a company with sufficient working capital is always in a position to take
the advantage of any favorable opportunity either to purchase raw materials or to
execute a special order or to wait for better market position.
In the third place, the ability to meet all reasonable demands for cash without
inordinate delay is a great psychological factor to improve the all rounds efficiency of
the business.
Lastly, during slump the demand for working capital, instead of coming down, shoots
up. A good amount of working capital is locked up in the inventories and book debts.
Concerns having ample resources can tide over that period of depression.
Thus, working capital is regarded as one of the conditioning factors in the long run
operations of the firm, which is often inclined to treat it as an issue of short run
analysis and decision making.
Components of Working Capital:
There are two components of Working Capital
A. Current Assets
B. Current Liabilities
A) Current Assets:
Components of Current Assets are as follows:
1. Cash & Bank Balance
2. Stock of Raw Material at cost- work in process and Finished
Goods.
3. Advanced Recoverable in Cash or kind or kind or for value to
BABASAB PATIL 40
41. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
be received.
4. Deposits under the company scheme.
5. Advanced payment of income takes credit certificates..
6. Outstanding debts for a period exceeding six months.
7. Balance with central excise authorities.
B) Current Liabilities:
Components of Current Liabilities are as follows:
1. Sundry Creditors for the goods and expenses.
2. Income tax deducted at sources from contractors.
3. Expenses Payable.
4. Unclaimed Dividend.
5. Security Deposits.
6. Liabilities for bills discounted.
7. Bank Overdraft Acceptance.
Working Capital Management concerned with the following aspects:
1. Cash Management:
Cash is the important current asset for the operation of the business. cash is
the basic input needed to keep the business running on a continuous basis; it is also
the ultimate output expected to be realized by selling the service or product
manufactured by the firm. The firm should keep sufficient cash, neither more nor less.
Cash is the liquid form of an asset. It is the ready money available in the
firm or with the business, essential for its operations. A firm needs the cash for the
following three purposes:
(a) The Transaction Motive:
(b) The Precautionary Motive:
(c) The Speculative Motive:
2. Receivables Management:
BABASAB PATIL 41
42. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Receivable represents amounts owed to the firm as a result of sale of
goods or services on the ordinary course of business. These are claims of the
firm against its customers and form part of its current assets. These receivables
are carried for the customers. The period of credit and extent of receivables
depends upon the credit policy followed by the firm. The main purpose of
maintaining or investing in receivables is to meet competitors, to increase sales,
and to maintain a cordial relationship with the clients.
3. Inventory management:
Every enterprise needs inventory for smooth running of its activities. It
serves as a link between production and distribution process. There is, generally a
time lag between the recognition of a need and its fulfillment. The greater the time
lag, the higher the requirements for inventory. The unforeseen fluctuations in
demand and supply of goods necessitate the need for inventory. Moreover, it
provides a cushion for future price fluctuations.
ANALYSIS AND INTERPRETATION
Statement of changes in working capital
BABASAB PATIL 42
43. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Particulars As @ As @ Effect
31/3/05 31/3/06 of wc decrease
Increase
A. Current assets
Cash on hand 15143 41550 26407
4634497 392952
Cash at bank 5027449
F.D with bank 16051822 246822 15805000
Deposits 4628150 4630150 2000
Sundry debtors 35371142 51579031 16207888
Pre university college 255296 255296
Loan to FCSM 8500000 8500000
Advances 1616172 4062468 2446296
Other receivables 633633 631633 2000
Closing stock 52948390 53043163 94773
Total current assets 125047200 127624611
B. Current liabilities
Current liabilities 40050746 49098335 9047589
Bonus provision payable 1280042 25794
1254248
Other payables 2090328 2713579 623252
Total current liability 43395322 53091956
Net working capital(A-B)
81651878 18777364 25896587
74532655
Increase or decrease in 7119223 7119223
working capital
Total working capital 81651878 81651878 25896588 25896558
INTERPRETATION
BABASAB PATIL 43
44. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
The statement shows that the changes in working capital in the year 2004-05 and
2005-06. It shows how the current assets and current liabilities are changes in two
years the different between current asset and current liabilities i.e. net working capital
of two years 2004-05 and 2005-06 is Rs 81651878 and Rs 74532655 respectively it
shows the working capital decreases of Rs 7119223 in 2005-06 which compare to
2004-05. Here due to decrease the firm is not satisfactory with its working capital
In current assets
1. cash in hand increases of Rs 26407
2. cash at bank is decreasing of Rs 392953
3. F.D with banks is also decreased Rs 15805000
4. deposits has increased of Rs 2000
5. sundry debtors has increased of Rs 16207888
6. advances has increased to Rs 2446296
7. other receivables has decreases of Rs 2000
8. closing stock has increased to Rs 94773
In current liabilities
1. bonus provision is increasing of Rs 25794
2. other payables is increasing of Rs 623252
3. other liabilities are increased to Rs 9047589
BABASAB PATIL 44
45. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Statement of changes in working capital
Particulars As @ As @ Effect
31/3/06 31/3/07 of wc Decrease
Increase
A. Current assets
Cash on hand 41550 20530 21020
18446450 13811952
Cash at bank 4634497
F.D with bank 265078 18256
246822
Deposits
4630150 4630150
Sundry debtors 47320434 4258597
51579031
Pre university college
255296 255297
Loan to FCSM ltd 8500000
8500000
Advances
4062468 5151421 1088953
Other receivables 500000 131633
631633
Closing stock
53043163 62356456 9313293
Total current assets 127624611 147445816
B. Current liabilities
Current liabilities 49098335 58462247 9363912
Bonus provision payable 1280042 1395879 115837
Other payables 2713579 2972036 258457
Total current liability
53091956 62830162
Net working capital(A-B) 74532655 84615654 24232454 14149456
Increase or decrease in 10082999 10082999
working capital
Total working capital 84615654 84615654 24232454 24232454
BABASAB PATIL 45
46. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
INTERPRETATION
This statement shows that the changes in working capital in the year 2005-06
and 2006-07. it shows the current assets and current liabilities i.e net working capital
of two years is 2005-06 and 2006-07 is rs 74532655 and rs 84615654 respectively. It
shows the working capital increases Rs 10082999 in the year 2006-07 compare to
2005-06 by increasing the firm is satisfactory with its working capital.
In current assets
1. cash in hand has decreased by Rs 21020
2. cash at bank is increased to Rs 13811952
3. F.D with bank is increasing of Rs 18256
4. there is no increase or decrease in deposits
5. sundry debtors is decreased to Rs 4258597
6. advances paying increased to Rs 1088953
7. other receivables has decreased to r 131633
8. closing stock is increased to Rs 9313293
In current liabilities
1. bonus provision is increased of Rs 115837
2. other payable is also increased of Rs 258457
3. other liabilities is increased to Rs 9363912
Statement of changes in working capital
BABASAB PATIL 46
47. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Particulars As @ As @ Effect
31/3/07 31/3/08 of wc decrease
Increase
A. Current assets
Cash on hand 20530 40460 19930
18446450 16228726 2217724
Cash at bank
Fd with bank 265078 275078 10000
Deposits
4630150 4431466 198684
Sundry debtors 47320434 51709943 4389509
Pre university college
255297 255297
Loan to fcsm ltd hulkoti 8500000 8500000
Advances
5151421 5687379 535958
Other receivables 500000 535374 35374
Closing stock
62356456 58071755 4284700
Recvd from NCDC - -------------------------- 1319412 1319412
Total current assets
147445816 147054890
B. Current liabilities
Current liabilities
58462247 49593596 8868651
Bonus provision payable 1395879 1564000 168121
Other payables
2972036 2971114 922
NCDC payable 1319412 1319412
Total current liability 62830162 55448122
84615654 91606768
Net current assets(A-B) 15179756 8188641
Increase or decrease in
6991114 6991114
working capital
Total working capital 91606768 91606768 15179756 15179756
BABASAB PATIL 47
48. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
INTERPRETATION
The statement shows that the changes in working capital in the year 2006-07
and 2007-08 it shows how the current assets and current liabilities are changes in the
two years the difference between current assets and current liabilities i.e. net working
capital of the two years is 2006-07 and 2007-08 is Rs 84615654 and 91606768
respectively. It shows the working capital increases of Rs 6991114 in the year
2007-08 compare to 2006-07 by the increase in the net working capital firm is
satisfactory with its working capital
In current asset
1. cash in hand increased of Rs 19930
2. cash at bank increased of Rs 2217724
3. F.D. with bank has increased of Rs 10000
4. deposits has decreased to Rs 198684
5. sundry debtors has increased to Rs 4389509
6. advances paying is increased to Rs 535958
7. other receivables also increases of Rs 35374
8. closing stock has decreased of Rs 4284700
9. there is a receivables from NCDC of Rs 1319412
In current liability
1. bonus provision has increased of Rs 168121
2. other payable has decreased of Rs 922
3. payable of received of NCDC of Rs 131912
4. other liabilities has decreased to Rs 8868651
Statement of changes in working capital
BABASAB PATIL 48
49. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Particulars As @ As @ Effect
31/3/08 31/3/09 of wc decrease
Increase
A. Current assets
Cash on hand 40460 277094 13366
Cash at bank 16228726 19346310 3117584
Fd with bank 275078 275078
Deposits 4431466 4052950 378516
Sundry debtors 51709943 51003132 706810
Pre university college
255297 255297
Loan to fcsm ltd hulkoti 8500000 8500000
Advances
5687379 4858428
Other receivables 535374 828951
1021508 486134
Closing stock 58071755 46289123
1319412 11782632
Recvd from NCDC ----------- 1319412
Total current assets 147054890 135628920
B. Current liabilities
Current liabilities 49593596 52486226
1564000 2892630
Bonus provision payable 1227535 336465
Other payables 2971114 4744789 1773675
NCDC payable 1319412 1319412
Total current liability 55448122 58458550
Net working capital (A-B) 91606768 77170370 5259595 19695992
Increase or decrease in 14436398 14436398
working capital
Total working capital 91606768 91606768 19695992 19695992
INTERPRETATION
BABASAB PATIL 49
50. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
The statement shows that the changes in working capital in the year 2007-08 and
2008-09 it shows how the current assets and current liabilities are changes in the two
years the difference between current assets and current liabilities i.e. net working
capital of the two years 2007-08 and 2008-09 is Rs 91606768 and Rs 77170370
respectively it shows the decreasing of Rs 14436398 in 2008-09 which compare to
2007-08 by decreasing in net working capital the firm is not satisfactory with its
working capital
In current assets
1. cash in hand has decreased of Rs 13366
2. cash at bank is increased of Rs 3117584
3. F.D with bank has no changes
4. deposits has been decreased of Rs 378516
5. sundry debtors has decreased to Rs 706810
6. advances is decreased of rs828951
7. other receivables has increased of Rs 486134
8. closing stock is decreased to Rs 11782632
9. received from NCDC of Rs 1319412 is decreased
In current liability
1. bonus provision is decreased to Rs 336465
2. other payables is increases of Rs 1773675
3. NCDC payables in decreased of Rs 1319412
4. other liabilities has increased of Rs 2892630
CALCULATION OF OPERATING CYCLE OF THE G.C.T.M. LTD
BABASAB PATIL 50
51. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Investment in working capital is influenced by four key events in the production
and sales cycle of the G.C.T.M
• Purchases of raw materials
• Payment of raw materials
• Sale of finished goods
• Collection of cash for sale
The firm begins with the purchase of raw material which are paid for after a
delay which represent the account payable period. The firm converts the raw material
into finished goods and then sells the same. The time lag between the purchase of raw
materials and sale of finished goods is the inventory period customers pay there bills
some time after the sales. The period that elapses between the date of sales and date of
collection of receivable is the accounts payable period.
The time that elapses between the purchase of raw materials and the
collection of cash for sales is referred to as the operating cycle. Where as the time
length between the payment for raw material purchases and the collection of cash for
sales is referred to as the cash cycle. The operating cycle is the sum of the inventory
period and the accounts receivable period, whereas the cash cycle is equal to the
operating cycle less the accounts payable period.
From the financial statement of the firm we can estimate the inventory period,
the accounts receivable period and accounts payable period.
Inventory period = average inventory
Annual cost of goods sold/365
Average receivable period = average accounts receivable
Annual sales
Accounts payable period = average accounts payable
Annual cost of goods sold/365
Financial information of THE G.C.T.M. Ltd 2005-2006
Particulars P&l a/c data Particular Beginning Ending
BABASAB PATIL 51
52. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Sales 231390442 Inventory 46919052 46274537
Cost of 206149519 A/c receivable 633633 631633
goods sold A/c payable 1254248 1280042
Sales = sales + yarn sales + other sales
228943400 + 700864 + 1746178
= 231390442
Cost of production 210628618
Add opening stock of finished goods 20107336
230735954
Less closing stock of finished goods 24586435
Cost of goods sold 206149519
Inventory period = average inventory
Annual cost of goods sold/365
= 46596794
206149519/365
= 46596794
564793
= 82.50
Average receivable period = average accounts receivable
Annual sales
BABASAB PATIL 52
53. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
= 632633
231390442/365
= 632633
633946
= 0.99
Accounts payable period = average accounts payable
Annual cost of goods sold/365
= 1267145
206149519/365
= 1267145
56479320
= 2.24
Operating cycle = inventory period + accounts receivable period
= 82.50 + 0.99
= 83.49
Cash cycle = operating cycle – accounts payable period
= 83.49 – 2.24
= 83.49
Financial information of THE G.C.T.M. Ltd 2006-2007
Particulars P&l a/c data Particular Beginning Ending
BABASAB PATIL 53
54. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Sales 254655866 Inventory 46274537 50785141
Cost of 215192439 A/c receivable 631633 500000
goods sold A/c payable 1280042 2972036
Sales = sales + yarn sales + other sales
3484623 + 250490529 + 680714
= 254655866
Cost of production 220852642
Add opening stock of finished goods 24586435
245439077
Less closing stock of finished goods 30246638
Cost of goods sold 215192439
Inventory period = average inventory
Annual cost of goods sold/365
= 48529839
21519439/365
= 48529839
589568
= 82.31
Average receivable period = average accounts receivable
Annual sales
= 565816
254655866/365
BABASAB PATIL 54
55. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
= 565816
697687
= 0.81
Accounts payable period = average accounts payable
Annual cost of goods sold/365
= 2126039
215192439/365
= 2126039
589568
= 3.60
Operating cycle = inventory period + accounts receivable
period
= 82.31 + .81
= 83.12
Cash cycle = operating cycle – accounts payable period
= 83.12 – 3.60
= 79.52
Financial information of THE G.C.T.M. Ltd 2007-2008
Particulars P&l a/c data Particular Beginning Ending
BABASAB PATIL 55
56. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Sales 274253348 Inventory 55889767 50785141
Cost of 244014252 A/c receivable 500000 1854786
goods sold A/c payable 2972036 4290526
Sales = sales + yarn sales + other sales
262156033 + 1131833 + 10965481
= 274253348
Cost of production 235780335
Add opening stock of finished goods 30246638
266026973
Less closing stock of finished goods 22012721
Cost of goods sold 244014252
Inventory period = average inventory
Annual cost of goods sold/365
= 106674908/2
244014252/365
= 53337454
668532
= 79.78
Average receivable period = average accounts receivable
Annual sales
= 2354786/2
274253348/365
= 1177393
BABASAB PATIL 56
57. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
751379
= 1.56
Accounts payable period = average accounts payable
Annual cost of goods sold/365
= 7262562/2
244014252/365
= 3631281
668532
= 5.43
Operating cycle = inventory period + accounts receivable period
= 79.78 + 1.56
= 81.34
Cash cycle = operating cycle – accounts payable period
= 81.34 – 5.43
= 75.91
Financial information of THE G.C.T.M. Ltd 2008-2009
Particulars P&l a/c data Particular Beginning Ending
BABASAB PATIL 57
58. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
Sales 256739185 Inventory 50785141 39186088
Cost of 231802183 A/c receivable 1854786 1021508
goods sold A/c payable 4290526 5972323
Sales = sales + yarn sales + other sales
13609228 + 242486231 + 643726
= 256739185
Cost of production 233038800
Add opening stock of finished goods 22012721
255051521
Less closing stock of finished goods 23249338
Cost of goods sold 231802183
Inventory period = average inventory
Annual cost of goods sold/365
= 89971229/2
231802183/365
= 44985614
635074
= 70.83
Average receivable period = average accounts receivable
Annual sales
= 2876294/2
256739185/365
= 1438147
BABASAB PATIL 58
59. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
703395
= 2.04
Accounts payable period = average accounts payable
Annual cost of goods sold/365
= 10262849/2
231802183/365
= 5131424
635074
= 8.08
Operating cycle = inventory period + accounts receivable period
= 70.83 + 2.04
= 72.87
Cash cycle = operating cycle – accounts payable period
= 72.87 – 8.08
= 64.79
Years Inventory Account Account Operating Cash
period receivable payable cycle cycle
period period
2005-06 82.50 0.99 2.24 83.49 81.25
2006-07 82.31 0.81 3.60 83.12 79.52
2007-08 79.78 1.56 5.43 81.34 75.91
BABASAB PATIL 59
60. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
2008-09 70.83 2.04 8.08 72.87 64.79
operating cycle
86
84
82
80
78
days
76 Series1
74
72
70
68
66
2005-06 2006-07 2007-08 2008-09
years
INTERPRETATION :
Here the firm’s operating cycle has continuously decreased from 83 days
during 2005-06 to 73 days during 2008-09. The operating cycle of the firm is
satisfactory because it has come down by 10 days. The firm’s cash cycle is also
satisfactory as it has decreased from 82 days to 65 days during 2005-06 to 2008-09.
However it is also observed that the debtor’s collection period has increased from
0.99 days to 2.08 days during the same time period.
BABASAB PATIL 60
62. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
INTRODUCTION
The ratio analysis is one of the most important and powerful tools of financial
analysis. It is the process of establishing and interpreting various ratios. It is with
the help of ratios that the ratios that the financial statement can be analyzed more
clearly and decisions made from such analysis.
CONCEPT OF RATIO
A ratio is a simple arithmetical expression of the relationship of one number to
another. It may be defined as the indicated quotient of two mathematical
expressions. According to Accountant’s handbook by Wixonkell and Bedford, a
ratio “is an expression of the quantitative relationship between two numbers”.
RATIO ANALYSIS
Ratio analysis is the technique of calculation of number of accounting ratios from
the data found in the financial statements, the comparison of the accounting ratios
with those of the previous years or with those of other concerns engaged in similar
line of activities or with those of standard ratios and the interpretation of the
comparison.
CURRENT RATIO
BABASAB PATIL 62
63. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
The current ratio of a unit measures firm’s short-term solvency, that is, its
ability to meet short-term obligations. It is the ratio of total current assets to total
current liabilities.
The current ratio measures the ability of the firm to meet its current liabilities-
current assets get converted into cash in the operating cycle of the firm and provide
the funds needed to pay current liabilities.
It is calculated by dividing total current assets by total current liabilities:
CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITES
Sl.no Years Current Current Current ratio
assets liability
1 2004-05 125047200 43395322 2.88
2 2005-06 127624611 53091956 2.40
3 2006-07 147445816 62830162 2.34
4 2007-08 147054890 55448122 2.65
5 2008-09 135628920 58458550 2.32
current ratio
3.5
3
2.5
2
ratio
Series1
1.5
1
0.5
0
2004- 2005- 2006- 2007- 2008-
05 06 07 08 09
years
BABASAB PATIL 63
64. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
INTERPRETATION:
The standard for current ratio is 2:1 but the firm’s current ratios are more than the
standard the highest ratio is 2.88 in the year 2004-05 and the lowest ratio is 2.31 in the
year 2008-09. And also it found that there is an excess amount in current assets its
shows that the firm is not utilizing the funds from current assets properly the firm
need to concentrate on its excess amount.
QUICK RATIO
This ratio is also termed as Acid-test ratio. A Quick ratio is concerned
with, the relationship between quick assets and current liabilities.
It is a measure of liquidity calculated dividing current assets minus inventory and
prepaid expenses by current liabilities.
The Quick Ratio is the ratio between quick current assets and current liabilities.
It is calculated by dividing the Quick Current Assets by the Current Liabilities.
BABASAB PATIL 64
65. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
QUICK RATIO = QUICK ASSETS/QUICK LIABILITES
Quick asset = current assets –inventory, prepaid expenses
Quick liability = current liability – bank overdraft
Sl.no Years Quick assets Quick Quick ratio
liability
1 2004-05 72098810 30847985 2.33
2 2005-06 74581448 53091956 1.40
3 2006-07 85089360 62830162 1.35
4 2007-08 88983135 55448122 1.60
5 2008-09 89339797 58458550 1.52
quick ratio
2.5
2
1.5
ratio
Series1
1
0.5
0
2004- 2005- 2006- 2007- 2008-
05 06 07 08 09
years
INTERPRETATION:
The standard ratio for quick ratio is 1:1 but the firms quick ratio are more than the
standard the highest quick ratio is 2.33 and lowest quick ratio is 1.35 so it found that
there is quick ratio is more than the standard by having more the ratio it shows that th.
So the has to concentrate for collection of funds.
BABASAB PATIL 65
66. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
INVENTORY TURNOVER RATIO
Inventory turnover ratio is the ratio, which indicates the number of times
the stock is turned over i.e., sold during the year. In other words, it is the ratio
between the cost of goods sold and closing stock. This ratio can be calculated as
follows.
INVENTORY TURNOVER = COST OF GOODS SOLD
AVERAGE INVENTORY
Sl.no years Cost of Average Ratio
goods sold Inventory
1 2004-05 256843587 46438421 5..53
2 2005-06 206149519 46596794 4.42
3 2006-07 215192439 51082152 4.21
4 2007-08 244014252 53337454 4.57
5 2008-09 231802183 44985614 5.15
BABASAB PATIL 66
67. THE GADAG CO-OPERATIVE TEXTILE MILL LTD, GADAG.
inventory turnover ratio
6
5
4
ratio
3 Series1
2
1
0
2004- 2005- 2006- 2007- 2008-
05 06 07 08 09
years
INTERPRETATION:
The inventory turnover ratio shows how the inventory is turning into
receivables through sales. Here in the firm highest inventory turnover is 5.53 in
2004-05. it indicates that there was a good inventory management in 2004-05 whereas
in the year 2006-07 there is low inventory turnover which implies that in 2006-07
there was excessive inventory levels than warranted by production and sales activity.
In the year 2008-09, the inventory turnover is 5.15.
GROSS PROFIT RATIO.
The gross profit ratio reflects the efficiency with which management
produces each unit of product. This ratio indictes the average spread between the cost
of goods sold and the sales revenue
GROSS PROFIT RATIO = GROSS PROFIT /SALES
Sl.no years GROSS SALES RATIO
PROFIT
BABASAB PATIL 67