CHAPTER 1

INTRODUCTION
INTRODUCTION

Organization is a social unit which is deliberately constructed and reconstructed to

seek specific goal. An organization came into existence when there are number of people in
communication and relationship to each other and is willing to contribute towards common
endeavour. the evolution of organization begins from early stages of human civilization ,
when two or more people began to cooperate and combine together in fulfilling their basic
need of foods, clothing shelter and protecting life. Thus an organization is born when people
combining their efforts for same common purpose. It is a universal truth than an individual is
unable to fulfil his needs and desire alone because his lacks strength ,ability and resources .so
he seeks to corporation of other people who share goal with him.

This organization study is carried out in KITEX LIMITED, KIZHAKAMBALAM.

The organization study has been carried out to get an understanding about the “Different
aspects and Functioning of this organization”. The study helps to interact with managers with
different departments and to observe the workers at their workplace and how they complete
their duties. The purpose of the study is to get a clear cut idea about the day to day affairs and
working procedure of the company

The study is confined to 8 week based on the primary data obtained from head of
various departments such as purchase m production and quality control .The study covers
brief in the present position of the textile industry and the company, the study is made by
personally visiting the company at Kizhakambalam

The primary data is collected through the structured interview with managers and
other personnel’s of the company. The information about manufacturing process has been
gathered by interacting with different personals of the organization at different levels

The secondary data for the study was collected from both internal and external
sources. Internal sources include annual reports, office record, management report and
external sources include company website, house magazine were used for collecting relevant
information for the study.
 This report with give the information’s regarding the manufacturing process,
organizational structure of the company, departmental functions and also functional
positioning of the company .it will also give brief description about the world , Indian and
state textile industry.

OBJECTIVES OF THE STUDY

The objectives of the study are as follows

Primary objectives: To study “ The primary objective of organization study is to get

better understanding of area wise subjects understood in course of business management
programme.

Secondary objective: The secondary study of this study is:

 To familiarize with a business organization to relate theory with practice

 To familiarize with organization structure and it’s functioning.
 To familiarize with different departments in the organization, their functions
and activities including documentation.
 To understand key business processes are carried out in an organization
 To understand how information are used in organization for decision making
various levels including flow diagram

IMPORTANCE OF STUDY

The study is conducted only in KITEX LIMITED KIZHAKAMBALAM, shows the

mportance of the project affects only this particular company, so findings are not generalized.

SCOPE OF THE STUDY

This is a descriptive study titles “AN ORGANIZATION STUDY AT KITEX

LIMITED, KIZHAKAMBALAM” . By this , the researcher has been given the insight into
various dimensions factors that influences day to day affairs and working procedure of the
company.

PERIOD OF THE STUDY

The period of the study is 2 days in January 2019

CHAPTER SCHEME

CHAPTER I
Introduction chapter gives an idea about the, organization where the study has
conducted, the objectives of the study, and the importance of the study, scope of the study
and its period and the limitations of the study.

CHAPTER II
It gives an overview of textile industry; it deals with world scenario, Indian and state
scenario of textile industry and company profile. It includes vision, mission and objectives of
the company.

CHAPTER III
In this chapter we will discuss on functional departments of the company.

CHAPTER IV
This is the last chapter of the report who includes conclusion of the report followed by
bibliography.
 CHAPTER 2

INDUSTRY PROFILE
INDUSTRY PROFIL

New innovation in clothing production, manufacture and design came during

industrial revolution – these new wheels, looms and spinning process changed manufacture
forever. There were various stages from a historical perspective- where the textile industry
evolved from being domestic small scale industry, to the stage of supremacy it holds now.
The cottage stage was the first stage in history where textile was produced on domestic basis.

Clothing manufacturing during industry revolution formed a big part of the exports
made by Great Britain .they accounted for almost 25% of the total exports made at that time
doubling in the period between 1701-1770. The centre of cotton industry in great Britain was
Lancashire and amount of exports from 1701-1770 had grown 10 times , however wool was
the major export items at that point of time. In industrial revolution era a lot of effort was
made to increase the speed of production through inventions such as flying shuttle in 1773,
flyer and bobbin system and the roller spinning machine by John Wyatt and Lewis Paul in
1738.

During this period the cloth was made of the material including wool, flax and cotton.
The material depended on the area where the cloth was being produced and the time they
were being made. In the latter half of the medieval period in the northern part of Europe
.cotton comes to be regarded as imported fibre. During the later phase of 16th century cotton
was grown in warmer climes of America and Asia.

During industrial revolution new machines such as spinning wheels and handlooms
came into picture. Making cloth material quickly became an organized industry as compared
to domesticated activity it had been associated with before. A number of new innovations led
to industrialization of textile industry in Great Britain. In the initial phase, textile mills were
located in and around the rivers since they were powered by water wheels. After the steam
engine was invented, the dependence on river ceased to a great extent .in the later phase of
20th century. Shuttle was used in textile industry were developed and became faster and thus
more efficient. The led to replacement of old shuttle with new one.
 Today, modern techniques, electronics and innovation have led to competitive low
priced textile industry offering almost any type of cloth or design a person could desire. With
its low cost labour base, china has to dominate the global textile industry.

GLOBAL SCENARIO

Textile and Apparel sector is a major sector globally. Since the initial stages of global
industrialization, Textile and Apparel sector has remained at the forefront in generating
employment and adding significantly to manufacturing output and exports for countries.
Textile & Apparel industry can be attributed as the first organized industry when it grew out
of the industrial revolution in the 18th Century. Countries like Britain, Italy, France, Japan,
etc. had a thriving Textile & Apparel industry during their initial phase of growth, which
supported their economic growth. The same is true today for nations like Bangladesh,
Vietnam and Cambodia.

Since the output of Textile & Apparel industry is a basic requirement for sustenance,
the long term growth trend of industry had always been positive. However, production bases
have kept shifting all along. Increase in manufacturing costs in developed countries, which
were the main markets also, caused growth of Textile & Apparel sector in Asian countries
which had raw material advantage as well. Soon enough the manufacturing base spread to
smaller nations, particularly those which got preferential access to major markets of USA,
Europe and Japan.

Global Garment Market

The current global garment market is approximately US$ 1.15 trillion which forms
nearly 1.8% of the world GDP. Almost 75% of this market is concentrated in EU‐27, USA,
China and Japan.
Table no 2

GLOBAL TEXTILE MARKET

COUNTRIES MARKET SIZE MARKET SIZE CAGR

IN USD IN USD %
2013 2025
EUROPE 335 440 2
USA 230 285 2
CHINA 165 540 10
JAPAN 110 150 2
BRAZIL 60 100 5
INDIA 46 200 12
RUSSIA 45 105 8
CANADA 30 50 4
AUSTRALIA 25 45 5
RoW 82 195 8
TOTAL 1146 2210 5

INDIAN SCENERIO

India’s textiles sector is one of the oldest industries in Indian economy dating back
several centuries. Even today, textiles sector is one of the largest contributors to India’s
exports with approximately 11 per cent of total exports. The textiles industry is also labour
intensive and is one of the largest employers. The industry realized export earnings worth
US$ 41.4 billion in 2017-18, a growth of 5.4 per cent, as per The Cotton Textiles Export
Promotion Council (Texprocil).
 The textile industry has two broad segments. First, the unorganized sector consists of
handloom, handicrafts and sericulture, which are operated on a small scale and through
traditional tools and methods. The second is the organized sector consisting of spinning,
apparel and garments segment which apply modern machinery and techniques such as
economies of scale.

The Indian textiles industry is extremely varied, with the hand-spun and hand-woven
textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills
sector at the other end of the spectrum. The decentralized power looms/ hosiery and knitting
sector form the largest component of the textiles sector.

The close linkage of the textile industry to agriculture (for raw materials such as
cotton) and the ancient culture and traditions of the country in terms of textiles make the
Indian textiles sector unique in comparison to the industries of other countries. The Indian
textile industry has the capacity to produce a wide variety of products suitable to different
market segments, both within India and across the world.

Market Size

The Indian textiles industry, currently estimated at around US$ 108 billion, is
expected to reach US$ 223 billion by 2021. The industry is the second largest employer after
agriculture, providing employment to over 45 million people directly and 60 million people
indirectly. The Indian Textile Industry contributes approximately 5 per cent to India’s gross
domestic product (GDP), and 14 per cent to overall Index of Industrial Production (IIP).

The Indian textile industry has the potential to reach US$ 500 billion in size according to
a study by Wazir Advisors and PCI Xylenes & Polyester. The growth implies domestic sales
to rise to US$ 315 billion from currently US$ 68 billion. At the same time, exports are
implied to increase to US$ 185 billion from approximately US$ 41 billion currently.
COMPANY PROFILE

Introduction

Kitex Limited, a prominent prodigy in the field of textile industry began its
spectacular display in 1975 at Kizhakambalam, Aluva this prestigious company ,one of the
vibrant divisions of Anna-Kitex group of companies of a celebrity among industrial giants in
our country. This weaving unit is engaged in the production of fabrics made of cotton and
other blends, greige cloth, bed sheets, mull and lungies.

They are marketed through a network of over 1600 authorized dealers. Through the
years , the company has carved a niche for itself in this highly competent industry with its
tradition of internationally accepted products.The company was established to set up an
efficient industrial estate to provide technical, industrial, financial and marketing facilities to
power loom owners and to create job opportunities to reduce unemployed.

Considerable infrastructure facilities have been built up by way of buildings

electronically distribution systems, supporting machineries for warping, sizing etc. To help
power loom owners. about 400 power looms were established in the premises under the
banner of Kizhakambalam Textiles Limited.

The Group got highest regards for the welfare of the employees and general public.
Several charitable programmes were organized for the benefit of the lower strata of the
society. The group is also providing a very good accommodation and canteen facility to
employees who hail from all over Kerala.
VITAL STATUS

Name : Kitex Limited

Address : Kizhakambalam, Aluva

Registered Office : Kizhakambalam

Nature of the incorporation : public Limited Company

Nature of Business : Manufacturing of cotton textiles

Nature of Product :Industrial Products & Consumer Products

Brand Name of the Product :Kitex

Total Built up area :16,50,000 sq.feet,

450 modern looms,

750 Skilled workers,

20million sq.feet of cotton, & cotton Blends.

Production Capacity : 2,500 sq.per day

Total Capital Employed :Rs 3,39,01,060

Annual Sales Range :400 crores

Growth :Steady

Chairman & M.D :Sri: M.C.Jacob

Director :Bobby.M.Jacob, & Mrs: Mini Bobby

Auditor :Mr. Anil Kumar & Co

Banker :Federal Bank, ICICI, Canara Bank

VISION

CUSTOMERS QUALITY LEADERSHIP POLICY&STREAM

PROCESS TEAM&TIE
&PEOPLE

A world class manufacturing company focusing on all round business excellence

through a Total Quality Management system with committed leadership, effective team work,
delighted customers, and satisfied employees in an environment friendly organisation

MISSION

Fabrics and Processed fabrics as per the customer specification efficiently in a

professional and environment friendly manner, on time, and at the right cost with at most
customer satisfaction to become a world class organization through continuous improvement.

OBJECTIVE

1. Increase sales of value added item by 20% from the existing level.

2. Reduce rejection by 10% from the present level.

3. Reduce customer complaint by 10%.

4. Increase product range by introducing new inner garments.

PRODUCT PROFILE

Kitex is engaged in the production of fabrics made of cotton of other blends, greige
cloths, bed sheets, and lungies. Kitex lungies are available in four various types, executive
medium super, medium and economy. All the prices are differently.
 ‘Kitex White’ is presenting an array of white dhothies, single as well as double. It comes
with streales of colour and good add to the looks of dhothy .Kitex also have beautiful of
wide range of bed spreads under the label of sweet dreams .though one year ,the company has
covered a rich for itself in this highly competitive industry with tradition of world class
quality.

An innovative school bag from Kitex ,the main shoot of Anna Group .scoobee day
bags are compactly designed with unique features that make it durable ,colourful,comfortable
and easy to carry .the bag features antistrain shoulder padding and acupressure buds
specially designed to minimize the strain on the back and shoulders.

Lungies

Kitex lungies are available in various varieties like:

Executive

Superior quality lungies available in various designs and colour.

Medium Super

Comfortable lungies you would love to drape. Available in various design and colour
combinations.

Medium

Experience freedom and coolness with medium range of lungies comes to you. In warm
colour and in various design.

Economy

After a hard day work jump into lungies to ease your tension to smooth your senses and feel
relax.
Tbale no 2.1

LUNGIES SIZE

Product & Particulars Size MRP

Executive 130cm x 200cm Rs.175

Medium 127cm x 200cm Rs.138

Medium Super 127cm x 200cm Rs.150

Standard 127cm x 192cm Rs.175

Supreme 127cm x 200cm Rs.150

Economy 127zm x 192cm Rs.125

Regular 124cm x 155cm Rs.110

Dhothies

‘Kitex White’ gives the customers an array of white dhotis- single as well as double. It
comes with streaks of colour and gold to add to the looks of their dhotis. It is available in the
rate between Rs.100/- to Rs.310/-.

Some of the varieties of dhotis available in Kitex are:

1-Smart Line

White single Dhothies with structure of either dark red or dark blue or dark green line which
can be worn equally at home and outdoor.

2—Smart Line Gold

Cream colour single dhothy with streales of gold jerry lines for special locations.

3—Ready Wear

Plain white dhothy we will have to drape.

4---Smart

Pure cotton white double dhothy with lines in five different colours to choose.

PRODUCT RANGE

Yarn count average ME 4 to100’s

Weft density 22 to 122 piker’s per inch

Warp density to 132 tends per inches.

Width range 36 to 65 inches.

Table no 2.2

DHOTI SIZE

RODUCT & PARTICULARS SIZE

Ready Wear 128cm x 200cm

Smart Line (Single dhoti white) 127cm x 200cm

Smart Line Gold(Single dhoti gold) 127cm x 200cm

Smart Line Ivory(Single dhoti kodi) 127cm x 200cm

Smart(Double dhoti white) 127cm x 385cm

Smart Plus RX(Double dhoti white broad 127cm x 385cm

Kara)

Smart Plus XL(Double dhoti kodi broad Kara) 127cm x 400cm

Smart Ivory Plus RX(Double dhoti kodi broad 127cm x 385cm

Kara)

Smart Ivory Plus XL(Double dhoti kodi broad 127cm x 400cm

Kara)

Smart Premium RX(Fine double dhoti white 127cm x 385cm

broad Kara)

Smart Premium XL(Longer fine double dhoti 127cm x 400cm

white broad Kara)
Bed- Spread

Kitex also have beautiful and wide range of bed spreads in the range between Rs.150 to
Rs.550/-. Through the years, the company has carved a niche for itself in this highly
competitive industry with its tradition of world class quality.

Bed Sheets or bed spreads are available in following varieties:

1-Sweet Dreams 60

Beautiful bed spreads available in beautiful designs and pleasant colour to suit our bed
rooms.

2- Sweet Dreams 50

Beautiful bed spreads available in beautiful designs and pleasant colours to suit our bed
rooms.

Table no 2.3

SWEET DREAMS

Particulars Size

Sweet Dream-50(Single Sheet) 128cm x 225cm

Sweet Dream-60(Double Sheet) 152cm x 225cm

Solo(1SD 60 bed sheet + 1 pillow cover) 152cm x 225cm

Duo(1 SD 60 bed sheet + 2 pillow cover) 152cm x 225cm

Solitude(1double sheet) 152cm x 225cm

Solo Minor(1 solitude bed sheet + 1 pillow 152cm x 225cm

cover)

Duplex (1 solitude Bed sheet + 2 pillow cover) 152cm x 225cm

BED SPREAD SIZE MULLS

Price ranges from Rs.40/- to Rs.60/-. Mulls are basically produced in two

classes in Kitex. They are:

Table no 2.4

BED SPREAD SIZE MULLS

Classes Size MRP

Economy 127cm Rs.48/-

Medium 1228cm Rs.60/-

SCOOBEE DAY BAGS

At the dawn of new millennium the new generation was presented with an innovative
school bag from Kitex, the main offshoot of Anna Group. ScooBee Day bags are compactly
designed with unique features that make it durable, colourful, comfortable and easy to carry.
The bag features anti strain shoulder padding’s and acupressure buds specially designed to
minimize the strain on the back and shoulders. Race through the features and see your heart
fall in love with ScooBee Day.

Scoobee became a close companion to all school going kids. With shoulder strap
cushions and rear padding for added comfort, scoobee day bags come in various colour
combinations. Using Ribstob fabric and Leak proof material scoobee day bags are attractively
priced. The unique features include special pouch for water bottles, Tiffin boxes and even a
secret pocket.
Features:

• Made from imported Dineer Nylon for durability

• Shoulder strap cushion to prevent shoulder pain

• Soft padding and acupressure buds on the rear side to cushion your back

• Unique stitching using strong nylon threads

• Quality zip with zip guard to prevent water leaking into the bag

• Secret pocket to hold chocolate and money

• 15 different colour combinations

• Special leak proof Tiffin box pouch at attractive price

• Bags for college and travel purposes also available

TRAWELL DAY BAGS

The Renowned Anna-Kitex Group-manufactures of quality consumer products forayed

into the travel bag segment with its – TRAWELL DAY BAGS- wide range of luggage and
baggage products.

Coming up with latest designs and models, these travel and everyday travel luggage
needs are designed to meet the modern trends and requirements of the customers. Made from
the imported materials, the bags are available in attractive styles and different colour
combinations.
TraWell Day offers:-

 Travel Bags
 Trolley bags
 Business Bags
 Lap-Top Bags
 Back-Pack Bags
 Beauty Case Bags.

TraWell Day bags caters to our every day needs and is most suitable for individuals
and families for travelling both by train and bus. Another speciality of these bags are they are
fully lined with water proof nylon material, and it is spacious, capable of accommodating the
luggage that would require 4 to 5 bags in just 1 TraWell Day bags.

The product range consists of Soft Trolley (H20, Gladiator, and Premium), wheeler
Duffels (Maxima), air Duffels (Aurora and Orient), Back packs (Platinum and Fair), and
Executive Bags (E-bags and Unique) are rated from Rs.635 /- to Rs.2970 /- available in
various models and sizes.

DAGO BERT SHIRTING’S AND SUITING

Dago Bert Shirting’s and suiting are woven from the finest cotton, using the toughest
materials that are soft to touch when draped on your body. Featuring the most contemporary
designs along with the latest weaving techniques, Dago Bert shirting and suiting are available
in variety of colours and shades.
AGNA AND ADONIS INNER WEAR

Kitex has made its foray into the untapped lingerie segment with brand names Adonis
and Agna. ADONIS – innerwear for men; and AGNA – innerwear for ladies. With Anna
Groups promise of quality, both ADONIS and AGNA comes competitively priced and ensure
complete value for money.

Adonis a range of refined vests and briefs; and AGNA a range of Bras and Panties
ensure seamless fit and finish. Both brands use specially processed fabric which feels smooth
and healthy even on the soft skin of newborns. It provides ample space for stretching,
bending and rigorous exercise without tearing.

MARKETS

Main markets are:

 North America
 South America
 Western Europe
 Eastern Europe
 Eastern Asia
 Southeast Asia
 Mid East
 Africa
 Oceania
TECHNOLOGIES

Kitex uses a combination of both traditional and modern technologies for the
production of their products. Some of the Techniques used for the production process in the
Kitex are:

a. Warping
b. Sizing
c. Beam Drawing
d. Weaving
e. Cutting, Un-winding and checking in warehouse
f. Folding
g. Recounting
h. Grading and sorting
i. Bailing (Packing).

AWARD WON

Mr. Jacob, the managing director of Kitex Limited has won several awards for his
meritorious contributions in the field of business. To mention a few:

 He has won the TRANSWORLD TRADE FARE Gold medal in the year 1975.
 He has been awarded the UDYOG PATHRA Award by the then Vice President of
India Sri. B. D .JETTI in the year 1979.
 A Memento was presented to Mr. Jacob in December, 1992 for his valuable
contribution to the Evangelistic Convention held at Puthencruz.
 Considering his outstanding contribution as an Industrialist Mr. Jacob was awarded
the BUSINESS MAN OF KERALA 1999 award by the BUSINESS DEEPIKA, the
business daily from one of the oldest Malayalam Newspaper Group.
 KRISTHU JAYANTHY award for the year 2000 was conferred to Mr. Jacob during
the 82nd ALL KERALA CATHOLIC CONGRESS for his noteworthy contribution to
the economy of Kerala.
 For the meritorious services of Mr. Jacob to the community, he was awarded by
Major Arch Bishop Mar VARKEY VITHAYATHIL in the year 2000, on behalf of
the Most Gracious IGNATIUS MOOSA 1st, PATRIARCH OF VATICAN.
  AKSHAYA AWARD 2000 for his outstanding contribution to ‘Malayanma’.
 The Ernakulum Chamber of Commerce the Joseph Chakola Memorial ‘Vyavasaya
Jyothi’ Award to Mr. Jacob for the year 2000-2001.
 Department of Catechism Ernakulam-Angamaly has recognized his contribution by
giving a Memento for special service rendered to Catechism Teachers.
 Bharat Aluminium Company Ltd (A Government of India Enterprise) Service
recognition Award.
 Samman Patra of Government of India, Ministry of Finance, Department of Revenue
for outstanding revenue performance.
 Advertising Industries media presented a Memento ‘Kerala Adifest 2007.

ISO CERTIFICATION

Kitex got ISO 9001-2000 IN February-2007. They are committed to manufacture and
deliver quality. Kitex Limited is the leading manufacturer with ISO 9001 - 2000 in South
India of all varieties of Greige Fabrics, Yarn dyed fabrics, Dobby and Leno dobby fabrics
made of Cotton, Polyester cotton, Cotton Nylon, Cotton Flax, Linen, Cotton Linen, Cotton
Lycra, Polyester Lycra etc. They can do any weaves / qualities like cambric’s, sheeting’s,
poplins, mulls, casements, drills, twills, linos, satins, bed fords, oxfords, stripes etc. They
have 525 running Looms of Sulzer, Picanol, Dornier & Cimmco making around 13,00,000
Mtrs of fabrics every month.

They are the leading manufacturer with ISO 9001 - 2000 in South India of all varieties
of Greige Fabrics, Yarn dyed fabrics, Dobby and Leno dobby fabrics made of Cotton,
Polyester cotton, Cotton Nylon, Cotton Flax, Linen, Cotton Linen, Cotton Lycra etc.
FUTURE EXPANSIONS

Future Vision

 To reach excellent quality standards in coming years.

 To keep in pace with modern technologies concept.
 To organise supply of materials at minimum cost to maximum excellent.

Future Expansion Plans

Weaving capacity is doubled from 5,000 by adding 120 shuttle loom. Now there is
planning to import more raw materials for Dornier and pecanor, and also to increase their
exports of various products to many different countries abroad. Diversifications of new
products are being added.

As a part of expansion Kitex Limited garments unit is developing and there is also
future plan to expand the capacity of TraWell Day bag unit for improving the quality and for
developing the production capacity.

COMPETITORS

 KKB
 Angel
 Jansons
Majority of the customers were asking Kitex lungies. It shows that Kitex lungies have good
brand image. If we look at the competitors from only the lungies side we can see the
competitors are as follows:

 Angel
 Bombay Dyeing
 Jansons
 KKB
We find that the market share of Kitex is far more than others if we compared with other
brands.
 CHAPTER 3

ACTIVITES OF VARIOUS DEPARTMENTS

 Chart no 3.1

STAFF PATERN

CHAIRMAN

GM

PRODUCTION PURCHASE STORE DGM HR MANAGER

MANAGER MANAGER MARKETING

SUPERVISOR STORE ASSISTANT

IN- ASSISTANT MANAGER
PURCHASE
CHARGE MANAGER
OFFICER

FOREMAN
SECURITY WELFARE
EXECUTIVE OFFICER
SALES
WORKERS EXECUTIVES
EXECUTIVES

Kitex Ltd follows the line or military organizational structure. Managing Director is
the top level, other functional managers followed by him. The span of management in the
organization is narrow span. The main advantage of this type of control is that close
supervision, clear chain of command, and close control and fast communication between
subordinates and supervisors. The model of the organization design is mechanistic model.
 An efficient management system plays a dominant role in the success of all business
units. It is this section that declares the levels of output, its product in pattern, pricing
technique, marketing style and even the mode of conduct to its executives.

Managing director who are the representatives of the shareholders take the important
decisions of the group concerns. They perform strategic planning and policy making
functions of Kitex ltd. For their help General Manager, top executives of the company
management are appointed.

General manager is responsible for the smooth, efficient and productive functioning
of the units from the production to the marketing. The middle level management comprises
of production manager, marketing manager, financial manager, personnel manager and
purchase manager, and store manager and quality controller.

Average Qualification of Employees

a. Top Level: Professionally qualified having sufficient industry experience.

b. Middle Level: Graduation and above with experience in the relevant areas (both
technical and managerial)

c. Junior Level / First line management: Diplomas / industrial training certification in

the textile industry and experience.
FUNCTIONAL DEPARTMENTS

Chart no 3.2

FINANCE DEPARTMENT

Deputy General Manager Finance

Finance Manager

Accounts Officer- Accounts Officer-

Taxation General

Accounts Executives Accounts Executives

FINANCE DEPARTMENT

The Company’s Board of Directors is responsible for the preparation of these

Consolidated Ind AS financial statements in terms of requirements of the Companies Act,
2013 (hereinafter referred to as “the Act”) that give a true and fair view of the consolidated
financial position, consolidated financial performance including other comprehensive
income, consolidated cash flows and consolidated changes in equity of the Company
including its associate in accordance with the accounting principles generally accepted in
India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of
the Act.

The respective Board of Directors of the company and its associate are responsible for
maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and its associate and for preventing and detecting
frauds and other irregularities; the selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and the design,
implementation and maintenance of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements that give a true and fair view and
are free from material misstatement, whether due to fraud or error, which have been used for
the purpose of preparation of the consolidated Ind AS financial statements by the Directors of
the Company, as aforesaid.

The finance department is headed by the general manager having sufficient industry
experience in the field of finance, taxation, company law and financial management. Finance
is the life blood of business. Finance department consists of all the managerial activities of
raising funds and effective utilization.

Finance department lies in the decision making area of investment, finance and
dividend. Recruitment and promotion in production are the activities of H.R. department, but
the payment of wages, salaries and other benefits are done by the finance department.
Finance department in Kitex Limited is headed by the finance manager. He decides from
when and where to acquire funds, to meet firm’s investment needs. He should determine the
proportion of debt to equity. The finance should strive to achieve the optimum capital
structure for the organization.

FINANCE AND ACCOUNTS

During the year under review the Rating Agency ICRA maintained the “[ICRA]AA-”
rating with stable outlook for the company’s long term borrowings and maintained the
“[ICRA]A1+” rating for the Company’s short term borrowings.

As mandated by the Ministry of Corporate Affairs, your company has adopted the Ind
AS for the financial year commencing from April 1, 2017. The estimates and judgments
relating to the Financial Statements are made on a prudent basis, so as to reflect in a true and
fair manner, the form and substance of transactions and reasonably present the Company’s
state of affairs, profits and cash flows for the year ended March 31, 2018.
Major Functions of Finance Department

1) Recording of the day today transactions- accounting.

2) Preparation of various statements regarding stock, receivables etc., which are to be

submitted to various authorities like bankers, insurers etc.

3) Planning and controlling of the expenses/ funds for productions.

4) Approving and making payments to different parties creditors/ suppliers.

5) Receiving payments from customers/dealers in specified time.

6) Raising short term loans/credit from banks and other financial institutions.

7) Preparation of sales budget/revenue budgets and expenditure budget on a quarterly

basis

8) Preparation and maintenance of costing records.

9) Preparation of fund flow and cash flow statements for every month.

10) Timely preparation and filing of financial records.

11) Preparing and filing of quarterly and final income tax returns.

12) Preparation/implementation of cost reduction and cost control programs.

In addition to the above mentioned work the following reports are prepared by the following
department.

a) Annual report containing past performance, current financial figures, profit/loss A/C,

Balance sheet and other financial statements.

b) Half yearly & quarterly report.

c) Monthly report to top management on financial performance of the company

including

Sales achieved, production achieved and profit generated.

 d) Conduct and Co-ordination of internal and statutory audits.

e) Perpetual stock verification & asset verification.

f) Investment analysis/ feasibility studies in production supply order received contracts

etc.

The finance manager is responsible for maintaining funds at an optimum level. Care is
taken to see that working capital never gets blocked anywhere at any time. The company
meets working capital requirements usually by bank overdrafts and other short term loans on
the security of stock of finished goods.

The company has a total investment of Rs.5 crore and annual turnover of around
114.5crore from the sale of grey fabric and finished products.

Table 3..1

PERFORMANCE REVIEW

Year ended 31st March, Year ended 31st March,

2018 2017
(Rs in lakhs) (Rs in lakhs)
Total Income 55992.49 54,936.54
Profit before 13670.24 17,330.33
Depreciation
Profit before Tax 10748.92 14,220.73
Profit After Tax 7002.23 9,221.79
Transfer to General 1000.00 16,000.00
Reserve
PERFORMANCE REVIEW

`Your Company reported a marginal top-line growth of 2.04% over the previous Year.
At standalone level, the gross revenue from operations stood at RS55725.42 lakhs compared
with RS 54590.13 lakhs in the previous year .The operating Profit before tax stood at RS
10748.92 lakhs as against RS 14220.73 lakhs in the previous year .The profit for the year
stood at RS 7002.23 lakhs against RS9221.79 lakhs reported in the previous year

The company continues retain its market leadership in infantswear with pan US
distribution network of our customers. The consolidated Gross Revenue from operations for
the year 2017-18 was Rs. 55,725.42 lakhs registering a growth of 2.06%. The consolidated
profits after tax stood at Rs. 7002.23 lakhs During the year under review, your company
has received order confirmations from major Infant Garment buyers viz., Gerber
Childrenswear LLC, Carters, Buy-Buy Baby, Ross Stores, Amazon, Target, Walmart who can
contribute major part of your Company’s turnover in coming years. There have been no material
changes or commitments affecting the financial position of the Company which have occurred
between the end of the financial year and the date of this report except the following:

During the year, TOYS “R” US, Inc., one of the customers of the Company filed a
petition in the Bankruptcy Court in The United States of America to wind down its US
operation and the process is pending. A motion is pending in the said court regarding claims iof
its creditors which would establish streamlined procedures and forms for asserting those types of
claims, which is set to be heard on 24th May 2018. The management is waiting on the court to
enter the order on that motion so that the claim of the Company is consistent with the
procedures set by the Court.

The Company has to recover trade receivables from them aggregating to Rs.1,735.15
Lakhs (US$ 26.62 Lakhs) and the Company also holds merchandise/other materials in stock
for them in inventory . The Company has engaged the services of Attorneys and Counselors
at Law ,M/s Nelson Mullins Riley & Scarborough LLP, USA to file the claim for recovery of
all its dues and no shortfall is anticipated thereon by the management at this stage. However as
a prudential measure, an estimated provision of Rs. 347.03 Lakhs has been made in the said
accounts towards loss, if any on recovery of receivables.
 Kitex achieved an all time high performance both in turnover and its profits. The
Gross revenues touched Rs.455.55 crores which is 42% more than last year and the Profit
before depreciation and taxes recorded was Rs.97.87Crores which is also up by 86% as
compared to previous year.

Your company coupled high level of modernization with, concentrated efforts of both
Management and employees, the whole hearted support of Banks, suppliers and customers to
attain these levels of performance. The earnings per equity share (of face value Re. 1)for the
year increased to Rs.12.08 from Rs.6.18 for the previous year.

DIVIDEND

Company recommend a dividend of 100% (One Rupee per Share of face value Re1/-)
for the year, (as against 80% for the previous year ended 31st March, 2017), subject to the
approval of the shareholders at the ensuing Annual General Meeting.

An amount of Rs.6.00 crores has been transferred to General Reserve as per the
existing provisions of Companies Act 2013 read with Companies Act, 1956 and rules there
under.
CAPITAL EXPENDITURE

As at 31st March 2018 the gross fixed assets stood at Rs.23739.64 lakhs and net fixed
assets Rs.18120.61 lakhs. Additions during the year amounted to Rs.7363.99 lakhs, which
include addition to land and building for Rs.248.98 lakhs, plant & machinery and other assets
amounting to Rs.7115.01 lakhs.

Table 3.2

FOREIGN EXCHANGE EARNINGS AND OUT GO

2017 - 18 (Rs in lakhs) 2016 - 17 (Rs in lakhs)

Earnings on account of 32623.58 24808.90

Exports
Outgo on account of Import 9450.21 2805.48
& Expenditure
 CHAPTER 4

CONCLUSION AND BIBLIOGRAPHY

CONCLUSION

The project study entitled “ORGANIZATIONAL STUDY OF KITEX GARMENTS

LTD , KIZHAKKAMBALAM has given me deep knowledge about the organization and the
textile industry

The data with regards to the study collected from the Kitex helps to understand the
process of production of textiles. Each department in Kitex was analysed in detail .Various
process are controlled and monitored under the skilled supervision and skilled labours

The study given information about the manufacturing products ,organizational

structure of the company , departmental function and gives good knowledge about the
financial position of the company. The co-operation and interaction extent by the employees
and the management of the Kitex have made it possible for the depth organizational study
which would be of much used to the research in the future
BIBLIOGRAPHY

Books

• Financial management – L.M. Pandey

Reports

• Annual report of the KITEX LTD for the period 2017-18.

• Audit report of the KITEX LTD for the period 2017-18.

Websites

• Wikipedia. in

• Google.co.in
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