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India Textile Industry is one of the leading textile industries in the world.
Though was predominantly unorganized industry even a few years back, but the scenario
started changing after the economic liberalization of Indian economy in 1991. The
opening up of economy gave the much-needed thrust to the Indian textile industry, which
has now successfully become one of the largest in the world.
India textile industry largely depends upon the textile manufacturing and
export. It also plays a major role in the economy of the country. India earns about 27% of
its total foreign exchange through textile exports. Further, the textile industry of India
also contributes nearly 14% of the total industrial production of the country. It also
contributes around 3% to the GDP of the country. India textile industry is also the largest
in the country in terms of employment generation. It not only generates jobs in its own
industry, but also opens up scopes for the other ancillary sectors. India textile industry
currently generates employment to more than 35 million people. It is also estimated that,
the industry will generate 12 million new jobs by the year 2010.
Indian textile industry can be divided into several segments, some of which
can be listed as below:
Î otton Textiles
Î 2ilk Textiles
Î üoolen Textiles
Î ÷eadymade Garments
Î Vand-crafted Textiles
Î ute and oir
India textile industry is one of the leading in the world. urrently it is
estimated to be around U2 52 billion and is also projected to be around U2 115 billion by
the year 2012. The current domestic market of textile in India is expected to be increased to
U2 60 billion by 2012 from the current U2 34.6 billion. The textile export of the country
was around U2 19.14 billion in 2006-07, which saw a stiff rise to reach U2 22.13 in 2007-
08. The share of exports is also expected to increase from 4% to 7% within 2012.
Following are area, production and productivity of cotton in India during the last six decades:
i R
i
Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, it
succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year, yet
managed to retain its position as world's second highest cotton producer.
2
V Vast textile production capacity
V Large pool of skilled and cheap work force
V Entrepreneurial skills
V Efficient multi-fiber raw material manufacturing capacity
V Large domestic market
V Enormous export potential
V Very low import content
V Flexible textile manufacturing systems
V Increased global competition in the post 2005 trade regime under üTO
V Imports of cheap textiles from other Asian neighbors
V Use of outdated manufacturing technology
V Poor supply chain management
V Vuge unorganized and decentralized sector
V Vigh production cost with respect to other Asian competitors.
Î India retained its position as world¶s second highest cotton producer.
Î Acreage under cotton reduced about 1% during 2008-09.
Î The productivity of cotton which was growing up over the years has decreased in 2008-
09.
Î 2ubstantial increase of Minimum 2upport Prices (M2Ps).
Î otton exports couldn't pick up owing to disparity in domestic and international cotton
prices.
Î Imports of cotton were limited to shortage in supply of Extra Long staple cottons.
It offers fine filament and micro filament polyester fabrics, such as georgette's, chiffon's,
failles, and dyed and printed jacquards for ladies blouses, skirts, and dresses, as well as
sarees.The company¶s strategy is not to be a commodity player in POY but a flexible
manufacturer of differentiated yarn.
The company also manufactures a range of printed pure silk chiffon, cotton, and viscose.
In addition, it offers partially oriented yarn, draw twisted yarn, draw warped yarn, sized yarn,
greige fabric, and dyed and printed fabric, as well as apparel, including Vareli business shirts and
ready to wear ladies garments.
The company sells its products through 68 dealers, 18 company owned depots, and 293
retail outlets in India.The company has made vertical and horizontal integration from its
establishment.It also markets its products in the United Kingdom, France, 2pain, Portugal,
Greece, the Middle East and Gulf countries, the United 2tates, Australia, 2ingapore, Thailand,
Vong Kong, Mauritius, 2outh Africa, and Brazil. Thus G2M has a established brandname in the
Indian as well as the international market.
Thus the company operates a complete line from the manufacture of the yarn,fabric to
the dying,weaving processes and finally the finished dress materials and sarees.
V
³Garden silk mills ltd.´is one of the leading manufacturers of the synthetic textiles in
India.The origin of the business goes back to the 1920 when Mr.Amichand 2hah installed the
first hattersly looms in 2urat,since 1920 the company expanded not only by increasing the
production capacity and workforce of the business but also by pioneering new materials and
processes.
The present chairman and managing director of G2M is Mr.Praful 2hah who is the
youngest son of the founder Mr.Amichand 2hah . he joined the business,prior to that date G2M
had concentrated on weaving quality fabrics and the first processing house of the company.G2M
is a public limited company incorporated on july 23,1979.It has a authorized share capital of 60
crores out of which 38 crores have been issued,subscribed and fully paid.
The companies shareholders have seen much appreciation and received regular
dividends which imposes that the company is prosperous year after year and is a profit making
venture.The company has seen much of highs and lows of the market and has successfully
evolved as a leader of the textile business of all times.
In 1970,the company recruited fine arts graduates from leading institutions.An art
studio was set up.The company started introducing its own designs and supplying these designs
in the market .G2M then opened its first retail shop in 2urat.The extension of the policy of
vertical integration into the retaining sector has advantages of uniform pricing,close market
monitoring and improving communications with consumers.At present it has some 293
authorised outlay.
In 1973 unique method of marketing through wholesale depots run by the mill was
pioneered as the first step in vertical integration policy.In 1974,first four automatic printing
machines. In 1980 the company developed a new site,Vareli which is 12kilometres away from
2urat.This has become the main manufacturing plant with investment of more than ÷s.2.0
billion.Most of the expenditure has been targeted at the modernization of the plant and
equipments particularly in the weaving and the yarn preparatory sections.As a result the
company today has one of the most sophisticated & modern textile plants in India. In
1992,the company came up with its rights issue after the allotment of which the company¶s
capital stood to 27.48 crores. The company has now divided to further its policy of vertical
integration by setting up a new plant near 2urat from which it will manufacture Polyester
filament yarn ,one of its principal raw materials from polyester chips. This plant is due to come
on stream in 1994 at a cost of approximately 655 million rupees.
In 1997 again the company installed additional Draw wraping machines ,draw twisting
machines and two for one up twisting machines from 2outh Korea to achieve better margin in
yarn segment.
The company has grown in all terms during the past few years in the economic
prosperity and in the form of larger assets creation,making G2M to be the leader of all times in
the industry.It achieved I2O 9002 in February 2000 which was its greatest achievement as G2M
was the first company ever to achieve this certificate in 2urat.The company had planned to
increase its capacity in a phased manner until 2002.
This would include set up of a power generation project for the garden vareli plant
and the installation of new draw warping and two for one machine draw texturising machine to
increase the production capacity.
÷
Garden Mills Complex ,sahara gate
Surat - 395010
Gujarat - India
Phone : 2311513, 2311197 ,
Fax : 2311029/502
Email :sharedepartment@gardenvareli.com
Manek Mahal 90, Veer Nariman Road, Churchgate
Mumbai - 400020
Maharashtra - India
Phone : 22873117-19
Fax : 22048112
!" #$ %
The company is primarily engaged in the manufacture of synthetic textile, sarees and
dress materials mainly made of polyester yarns and certain intermediate products. Garden 2ilk
Mills Pvt. Ltd. has been, and continues to be, the initiator of the majority of new textile varieties
woven and processed in surat, is at present, the consumer of approximately 50 percent of
polyester yarn in india. The company believes that design is a key factor in its market and used
to produce some 200 different printed design each month.
The company¶s lead in different and improved fabric construction and the emphasis it
places on design together with its modern and efficient plant is key to its future success. The
company operates in a highly fragmented market where no individual manufacturer has a
material market share. It is also the leading integrated textile manufacturer house, which
undertakes all processes from yarn manufacture to the retailing of dress materials and sarees.
The company, and its wholly owned subsidiary, Garden finance are also engaged in
providing to the indian corporate sector trade and asset finance including the discounting of bills
of exchange.
!" #
The company is the first to set up a polyester filament yarn project in south Gujarat. The project
is capable of producing multifilament and microfilament yarn having capacity of 5000 tons p.a.
in collaboration with NOYVALLE2IVA AG of 2witzerland.
Now a day¶s company increase POY 2pinning capacity from 7200 metric tones to 32200
metric tones per annum and secondly company increase Draw Extrusion from 13 to 17 i.e. 4
machine are installment, and also increase Draw üarping machine from 7 to 9 machine. The
project has a special significance for the company, as polyester filament yarn is the basic raw
material for the product for manufacturing man made textile.
(!) &)2!(!*(
- + Director
/ . +2 Director
,+2 Director
222 Director
on schedule and within budget. In March- une 09 the ompany commissioned the latest
technology POY and FDY equipments adding further spinning capacity of about 55,000
TPA.G2M has further undertaken an expansion project involving enhancement of Polyester
textile grade hips apacity by 130,000 TPA which is expected to be commissioned by
February of 2010. This will further enhance our capability to serve our clients demand of non-
commodity chips, of which Garden is a leading supplier. Attache to this plant, as well as the
older P plants, machinery to directly spin a diverse range of yarns is in the preliminary project
stage. This will downstream about 138,000 TPA of polymer into directly spun POY & FDY
yarns.
In addition, 11,000 TPA of semi-dull chips will feed specialized extruder-spun yarns in the same
premises. The estimated completion date of these downstream projects is Q3 of 2010-11. In the
year under review the original P plant has been modified to optionally manufacture high-value
polymeric chips for film-grade applications and textile applications requiring optical brightener
additives. In order to maintain uninterrupted power supply to support these projects, your
ompany is setting up an 18Mü power plant. The total cost for the upcoming projects is
estimated to be around ÷s400 cores.
2*(
22*(
ustomer satisfaction is there ultimate mission.
*/+*/!)*!2!(&*1,))2
ompany¶s has its own culture and identity in business world. It is the effort of the
company to maintain this identity and be leading in global market. ompany has fixed its goal
and laid down some certain missions to achieve them.
*/+*/!)*!2
Î Maximum return to share holders.
Î To improve company¶s position in business.
Î To keep a slim and trim but fully satisfied management team to operate faster and to
achieve higher levels of business and growth effectively.
Î To ensure quality at all stages.
*
?
Chairman
Managing director
General Manager
Production Selling Finance Human resource
Manager Manager Manager Manager
Asst. manager Sales C.A. Asst. manager
executives
Asst. manager
Workers
Staff
Comp
operators
&
$ $ #
M c
!!" +& $ # %
All activities which are carried our in Production Department are as follows:-
c
Mc
c
c
c
First of all marketing people collect information from market (customer) which was used
for production & also send design to producer for production of goods.All activities like first
marketing department collect order from customer and also own created designs directly send to
production department. Production department also ask for certain design to marketing people.In
short first marketing people send design as per design received in production unit and after the
confirmation received from marketing department production start.
After production start then all the products dispatch to marketing department. Marketing
department send all the goods to their customer. And also some product sends as for sample. 2o
that customer knows about the product and sends order for that order.
0 )
0%
+!(*!*(%
Vareli Village,
N.V.No.8
ompany have their own production plant for raw-material and remaining part of raw-
material can be purchase from outside from ÷eliance Industries, Bombay Industries and also
some part of raw-material and ingredients can be import from other country.
All the cloths prepared in the company can be sending as per order and some part can be
exported in other country. Generally most of order ompany received in Bombay Market which
was measure market for the company.
ompany has their own power generation so company does not have any problem
relating to power.
ompanies have their own buses and company¶s plants are near to N.V.NO.8. 2o
company benefited by this way.
ompany¶s plants available were climate suit to the plant. Because at that place all
company available and so all facility provided by government benefit to the company.
" # +%
ompany located at GID area where labour can be easily available and company has
their own bus facility who handles man power to traveling.
%
I. Material:-
Yarn
II. Product:-
III. üorkers:-
IV. Machinery:-
2
2
$
3
1 #
4
5
,
%
88 %
+
9888
%
+
%
%
%
2 #%
The company used production factor as input like man, machine, capital etc. and get out
put of cloths. üorkers work in three shifts i.e. each shifts timing are 8 hours and during these 30
minutes break given to their employees.
Î $ $%
- 2arees
- Dress-Materials
DMT+MEDENOL (chemical)
Î / '#
'%
- :-÷aw material for 2arees and dress material are as follows:-
%÷aw material for production of 2arees and dress materials are produce in
company itself at olva Plant and remaining part of raw-material can be purchase from out side.
i. Own processing,
Î +
$ # / '%# '%
* (58;
*+<8;
*2+ <8;
÷aw-Material like PFY (Polyester Filament Yarn) purchase from out side which is
as follows:-
pD pÑ
In Draw üarping Machine used for 2tretching Polyester Filament Yarn. In this machine
the following procedure can be done.
First of all 1500 p.p. to 1200 p.p. size creel can be build up or beam of that size can be
prepared. Then after draw joms machine stretch polyester filament yarn. In this machine two
procedures can be done i.e. first 130¶temperature heating the yarn then 80 to 90¶temperature cold
the yarn. 2o that +*- can be converted into *- =0- */)()& -!/(> Then after
intermingle device binding or beaming the *-. Then after this beam send into another process.
-2peed 1000
-To ount
-Diameter
-üidth
-Total Meter
-2peed of Machine
Total no. of machine in the company is 9 & all machine made in Germany.
/
1 #
%
-2peed of machine
-Actual 650
-÷ated 650
-üindings
-ircumferences
2topping condition
-Inter 2tretching
-Outlet 2tretching
-Massage
-Made in Germany
After completion of these procedures then after caning and looms and finally grey fabric
prepared. One officer also prepared one grey fabric checking report. This report can be check by
VOD of that department and send for further processing.
After this process Grey Fabric can be send in checking department for checking the mistake and
then after send it to mending department where all mistake found by checking officer can be
clear or rectify. Then send it for further processing.
& $ #
" '%
" $ < <88#
entimeter Point
1 to 3 1
3 to 6 2
6 to 9 3
9 and more 4
+
0 to 4 A
5 to 10 B
11 to 15 B1
16 and more
- Truck for large beam
- Lorry
- onveyer belt
- Trolley
- Patching machine
- umbo Lorries
- Pallets
- Batching Machine
- 2kid Boxes
- Plastic Boxes
"
# / '%
%
Generally in the company all the procedures for inventory management and all other
control activity in company can be done automatically.ompany also does AB Analysis and
EOQ Analysis.
Î 2 +
entral stores and purchase department and production department. If any stores item want
in production department from stores and purchase department then VOD of production
department write one memo to store and purchase department. This department received the
memo and sends for checking sign of the memo and if not any mistake then sends goods as per
requirements and prepared bills for that order and send it to Account department.
In short:-
+ &$ %
! $! !"# !$ )!*
Input----Flat Yarn
2izing
Beaming
Leasing
( # (
2
5
$
A
1 #
A
5
B ! # %
" $ < <88#
# +
1 to 3 1
3 to 6 2
6 to 9 3
9 and more 4
+
0 to 4 A
5 to 10 B
11 to 15 B1
16 and more
!
?
4
5
$ $
The manufacturing plant of Garden silk mills Ltd. is located at olva an industrial area
which is 16-20 kms away from the 2urat city.The manufacturing unit has the following
manufacturing plants Plant A,B,,D and E where the production activities take place.
+ 2
his is the first stage of production where polyester chips are manufactured. The finished
polyester chips is either demanded by the other companies or is used internally for further
processing to obtain POY.In the second stage the feed material is the polyester chips produced in
stage 1and the output is polyester yarn.
2 "#
+$#
1,20,000 29,000 <73888
$
3,500 25,000 65488
& ''
21,000 - 6<888
& ''
6,000 - 2888
& #$
In India there is very healthy competition among textile industries. There are many giant
organization producing yarn.. 2urat is hub of textile industries. There are many national and
multinational companies have their production unit in 2urat like, reliance,alok industries,Modern
synthetic ltd etc.
/ #$
J ÷eliance
J Indorama synthetic
J GB ltd
J Gokulanand
J 2anghi ltd.
J Nova ltd.
J Paras ltd
#
#
ustomer segmentation can be identified by examining demographic, psychographics, and
behavioral differences & geographic. The marketers then decide which segment presents the
greatest opportunities that are its target market. For each chosen target market the firm develops
a market offering.
Garden silk mills sell its product in both local and foreign market. 2o we can say that Garden silk
mill has geographic segmentation, which call for dividing market unit such as nation, state,
countries, and cities region etc. Garden silk mill has good opportunity in foreign market.
Garden silk mill have geographic segmentation so we can say that target market is also
geographic. The target market of Garden silk mill is as follow:
J Indian market
J Foreign market
& '
Being an industrial good there are no intermediaries in the channel such as the
wholesaler, jobber or the retailer. In this industry dealers play an important role who facilitate
between the customer and the manufacturer. The products produced here don¶t go the dealers
warehouses but directly go to the consumers godown.Thus the company has a 1 level channel
of distribution where the industrial distributors sell to the industrial customers. The dealer
before commencing business with the company has a deposit a security amount of ÷s.12,
00,000.The dealer is entitled to a commission of 25 paisa on per kg sold.
2 $
The company looking into the monthly requirement on the basis of the monthly
production programmed and the stock lying at the warehouses then decides the material the
company would supply to the customer on daily basis
J + $ "
J An invoice copy is prepared by the company along with a document called the challan.4
copies of the document are prepared. The following are the 4 copies prepared: Buyer
copy which is the original copy, Transporter copy, Exercise copy and last is the accounts
copy maintained by the company. The invoice contains all the possible details of the
product as well the various charges that the customer has to pay for.
On receiving the complaint form from the customer the company then sends the
company representative to inspect if the complain of the customer is genuine or not. In case
if there is a defect in the good the company takes the defective goods from the company,
prepares a credit note in the name of the company and replaces it with a fresh stock of goods.
#
J Dealers send the order to the company¶s office.
J 2ales manager show their products according to order is available or not.
J If not, than inform the production unit (2urat) to send the required product
J 2ales manager send his dealers to supply the product with bill.
#
J From Mumbai office the material is sent to foreign office
J ustomer gives order at the foreign office
J Material is supplied to customer
J 2ales bill
J hallan
1st-÷eliance
3rd-÷ajshree
4th-Modern petrofils
$ $ $
The company first takes the requirement of the customer on the monthly basis.
The dealer caters with the customers requirement.
The company looking into the monthly requirement on the basis of the monthly
production programmed and the stock lying at the warehouses then decides the material the
company would supply to the customer on daily basis.
#$
onsider following factor, they estimate future sales, and prepare the sales plan
The goal in business is to make a profit by selling a product or service. In most situations several
companies will be competing for sales and the market share. This competition can range from
performance competition, where each company does its best to win the hearts and minds of the
customers, to a head-to-head competition, where a company will not only seek to do better than
its opponents but will also try to prevent the competition from performing well. Large companies
may use predatory competition to assure their top position.
2 +
They prepare sales plan. They estimate the sales volume per month and send it to
production department.
+
$
Garden silk mill has no fix price of different yarn and chips. They have 15 ± 20 % margin on
manufacturing cost. Price will change according feature of products. The factor affecting pricing
policy is denier and 25% less then reliance industries
!$$ 2 !"
The Garden silk mill ltd has applicable from excise duty, vet and service tax.
ompany has its sales executives in Mumbai, and other countries. 2o they have to control
on them in such a way that they get better performance. They control on them in following way:
!"
$
Partially oriented yarn is an industrial product thus it eliminates a number of
communication tools such as there is no advertisement, no sales promotion or publicity thus
eliminating the non personal communication channels.
Being an industrial good it makes use of direct marketing such as direct mail,
telemarketing ,newspapers.,periodicals,brochures,magazines etc.It is said to be customized,
up to date and interactive. There is personal face to face interaction with the customers and
even person to audience in form of seminars, trade shows and conferences. This is said to be
an immediate and an interactive method which has distinctive qualities like cultivation and
response.In this industry word of mouth plays a very important role and effects the buying
influence.
J 2ales report
J üeakly executives report
J Expenses report
B
In this modern world consumers are also very keen therefore they choose the best quality
product. Even Garden 2ilk Mills Pvt. Ltd. has monopoly on texturising machine but
company does not decrease the quality of the product.
Garden 2ilk Mills Pvt. Ltd. has its own inspector to inspect the raw materials, semi
finished & product as per specified standard. The main aim of Garden is to maintain the
better quality at a reasonable price. If the product is not according to specified standard
then it is rejected. To get large share of market, quality control is necessary for each &
every unit.
%
ompanies cannot simply stay domestic & expect to maintain their markets. Despite the
many challenges in the international arena, companies selling in global industries need to
internationalize their operation. In deciding to go abroad, a company needs to define its
international marketing objectives & policies. The company must determine whether to market
in a few countries or many countries.
Garden 2ilk Mills Pvt. Ltd. as a global firm deals with export and import patterns
among the various countries of the world. Value of imports on .I.F basis in the current year is
rupees 1,99,92,000. Earning in foreign exchange on export of goods calculated on F.B.O basis in
current year is rupees 14,10,42,000. Therefore the company had done the international marketing
on global basis.
+
³Product mix is also called as product assortment which is the set of all product lines and items
that a particular seller offers for sale to buyers.´
A company¶s product mix has certain width, length, depth and consistency. These concepts are
illustrated for industrial products of Garden 2ilk Mills Pvt. Ltd.
1. üidth: -The width of a product refers to how many different product lines the company
carries. The above table shows a product width of 6 lines.
2. Length: -The length of the product refers to the total number of items in the mix. In the
above table it is 15.
3. Depth: -The depth of a product refers to how many variants are offered of each product in
the line
4. onsistency: -The consistency of a product refers to how closely relate the various
product lines. All the machines are texturising machines in Garden 2ilk Mills Pvt. Ltd.
/ $%
They are responsible to satisfy the customer requirement by adopting better quality of
product.
They are directly responsible to the general manager and the proprietor in-charge.
They are responsible from inquiry of goods and delivery of product to their customer.
They are responsible for attracting new customer for their product.
They are responsible to give the best advertisement in different media through which
attracting number of customers.
2
( '+& " $# %
For new product development, Garden 2ilk Mills Pvt. Ltd. is uses following strategies:
First they contact their existing customers to introduce their new machines & also request them
to recognize their products to other interested buyers.
1. They arrange seminars in which they show the features, benefits, advantages of their
products & also explain them how it affects their profit, productivity etc.
2. They also issue prospectus, which contains whole information related to product.
Thus, NPD is an important tool in the hand of firm for increasing their sales.
As every being has life, a product has its life. Industrial goods may have a longer life than
consumer goods. ühen a product idea is commercialized, the product enters in to the
market & competes with the rivals, for making sales & earning profits. Products, like
human being, have length of life. This has been described as life cycle in human beings &
when applied to products which is called as PL.
As we know that Garden 2ilk Mills Pvt. Ltd. produces industrial goods & these goods are
used for producing consumer goods. Industrial goods are long term purchasing decision
In finance Department ompany designed the pure line organization structure. This
department is work as staff position for production and selling/ marketing department.
hair
man
Director
Finance
manager
hief
accountant
hief account
operation final
operation
2taff
2taff
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The major steps associated with accounting work are four as presented below.
Î Analysis of each and every transaction to ascertain the amount involved and also
the account to be detailed and credited.
)!((
³Financial statement are interpreted as those statement which show both the performance
and the financial position. They include balance sheet, income statement, fund statement, or any
supporting statements or other presentation of financial data derived from accounting records.´
In brief it includes the figures in summary form of various assets held by the company and also
its liabilities towards outsides including the owner at the end of the last day of an accounting
year. Income statement or P & L account is a statement which shows in summary form, the
revenue and expenses of a business entity for an accounting year. It shows the sales revenue, cost
of sales, gross profit, operating expenses, operating profit, non-trading income and expenses, net
income or loss, tax liabilities, etc.
In brief Profit & Loss Account presents information about the result or outcome of business
operation during an accounting year by matching expenses incurred during an accounting year
against the revenue earned in the last year.
These two basic financial statements are supported by a number of schedules annexure
suplemantary statements, etc. 2upplementing the data contained in the balance sheet and the
income statement. Therefore all these in addition to P&L account and Balance 2heet fall within
the scope of financial statement.
/!2*(!(!2!))(2%
Its very well known that the financial statement basically refer to balance sheet and P&L account
or income statement of course this two basic statement are supported by number of schedules.
The figures includes in the financial statement are influenced by three important factors. They
are
÷ecorded facts
Generally accepted accounting principles
Personal judgements
</ %
It may be remembered here that the preparation of financial statement is made on the
basis of trail balance which in turn is prepared on the basic of balance in various ledger account.
As is known ledger account are prepared by posting journal entries recorded facts here denote
the figures recorded in journal books, ledger account and trail balance. The financial statement
are prepared on the basis of entries in these book of account any figure wchih does not find place
in the book of account. Any figure which does not find place in the book of account is usually
not taken to the financial statement.
GAAPs are in the form of guidelines or rules which are to be used as standards for recording
business transaction in the books of account and their fair presentation in the financial statement.
Because the financial statement have to be prepared in conformity with the gaps.
These includes principles, concepts, conventions and assumption. onsequently the figures in the
financial statement are influenced by the GAAPs.
figures.Gaaps and personal judgement and these three influence the financial data
substantially.Therefore whenever we deal with financial statement. They are to dealts in the light
of these three factors.
02)*(!(!2!))(%
To provide useful information which can gainfully be utilized to predict, compare and evaluate
the earning capability
To provide sufficient information which can be utilized by both the internal and the external
parties to predict, compare and evaluate the financial soundness of the entity. They should also
enables the parties to predict, compare and evaluate the potential funds flow in terms of both
amount, time and associated uncertainty.
To provide required information to enable the users of financial statement to evaluate the ability
or performance of managerial personnel to utilize the company¶s resources for the purpose of
accomplishes the primary corporate urge.
To provide information primarily to those who have limited authority or resources to obtain the
required information.
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The financial statement which are normally prepared in an absolute manner don¶t communicate
much about the profitability, solvency, stability, liquidity, etc. Of the undertaking to the users of
the statements. Because the statement include the figures which don¶t speak on their own. Due to
this reason, the financial statement are not assisting either the external parties or the internal
parties to take proper decisions through the very purpose of preparing and presenting these
statement is to assist then in this task.
Financial statement comprises of only the effects on the items of income statement or balance
sheet or both. In brief of variegated types of transaction business. Financial and investment that
have taken place during an accounting year.
As is known the financial statement are prepared annually. Therefore they are not capable of
furnishing either the comprehensive or the correct information about the profit, loss, assets,
liability, etc. Because actual profit computed only after winding up of business.
Financial statement records dissimilar transaction which can be expressed in terms of money. Of
course, these monetary records or statement are often supplemented by other information.
Vowever, the financial statement exclude the non-monetary facts or attributes which can¶t
accurately be expressed in terms of monetary unit when if they are very important.
2ince the preparation of financial statement is governed by the gaaps and since there are number
of diverse accounting solution to each of a few important problems, financial statement do not
depict the reality.
One can find a number of opportunity for manipulated by the management wherin the financial
statement can be prepared in such a way which will suit the wins of management. It is because of
the presence or availability of diverse accounting solution to each of few major items of financial
statement.
$ 1
The term capital budgeting means planning for capital asset. The capital budgeting decision
mans a decision as to whether or not money should be invested in long term projects. 2uch
projects may include the setting up of a factory or installing a machinery or certain creating
2
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additional capacities to manufacturing a part which at present may be purchased from outside. It
includes a financial analysis of the various proposals regarding capital expenditure to evaluate
their impact on the financial condition of the company for the proposal to choose the best out of
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One of the most important areas in the day to day management of the firm is the
management of working capital. üorking capital management is the functional area of finance
that covers all the current account of the firm. It is concerned with management of the level of
individual current asset as well as the management of total working capital.
üorking capital refers to the fund invested in current assets, i.e. Investment in stocks,
sundry debtors, cash and other current assets. urrent assets are essential to use fixed asset
profitability. For example, a machine can not be used without raw material. The investment on
the purchase of raw material is identified as working capital.
L = urrent Liablities
- %6883%<8
%<+1F894=!E>
= 0.75(576.76-12 = A7852/
%6+1F894=!>E
=0.75(576.76) -122.28
= A<863/
= 0.75(576.76-13.71) ± 122.28
= A888</
A fund flow statement provides information on how, during the reporting period, decisions
relating to capital structure, dividend and investment in non current assets have changed the
amount invested in working capital.
2 # '
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$
urrent assets
2 185.76 217.55 31.71
2 107.9 67.47 787A
21.75 12.5 364
* 103.53 138.38 34.25
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Funds for operation <826A
A<433 A<433
Î Book maintains in computer are cash book, bank book, ledger, sales register, purchase
register, journal, stock register.
J The rates derived from the rates provided for the corresponding assets under the
Income-Tax rules in force at the time of purchase or requisition of assets. In respect of
plant & machinery, they are based on normal rates even where the ÷ules provide for
higher rates.
J The rates prescribed under 2chedule to the companies act, 1956.
J Office building : 5%
J Furniture : 10%
J Machinery : 15%
J Godown : 5%
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CCCCCCC/CCCCCCCC
2 " 1,677.34 1,332.97 2,515.60
* # 12.79 6.39 4.89
# 1,690.12 1,339.36 2,520.50
)$ 1,506.96 1,177.11 2,282.09
*$
+ 170.38 155.86 233.51
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+ 183.17 162.25 238.4
57.02 47.24 72.97
+1& 126.14 115.02 165.44
& $ 57.4 44.86 72.58
& $ */ " -- -- --
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+1 68.74 70.16 92.86
28.74 19.43 29.94
( + 40 50.73 62.92
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+ 2 10.45 13.25 16.43
)? 38.29 38.29 38.29
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10 10 10
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84.23 278.53 26.72
Vuman resource management may be defined as a set of policies, practices and programmes
designed to maximize both personal and organizational goals. It is the process of binding people
and organizations together so that the objectives of each are achieved.
In any organization, human resource management is very useful to improve and maintain
relation between management and employee, trade union and management. It works as a watch
dog on each and every activity of employees, management, labour union, etc.
Garden silk mill ltd. has a very well developed human resource management. Mr. 2anjay
agrawal is very helpful person. 2o he has very good knowledge in the field of human resource.
Vis assistants also very well related with V÷D. Mr. agrawal believes that any organization get
success if there is proper co-ordination between its employees and management.
In this topic we discuss about how human resource department doing its activity to develop
good relation between employee and management to get success.
2
' $
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In a simple term, structure is the pattern in which various parts or components are
interrelated or interconnected. Thus, organization structure is the pattern of relationships among
various components or parts of the organization. This prescribes the relationships among various
activities and positions. 2ince these positions are held by various persons, the structure is the
relationships among people in the organization.
Garden silk mill ltd. have line and staff type of organization structure. Because there is
good relationship between superior and subordinate
Line position
J Production department
J 2elling department
These departments come under staff position because they get advice from finance department
and human resource department in the matters like, purchasing, recruitment, selection, etc.
'
In Garden silk mill ltd., there are four main or basic functions like production, finance,
marketing and human resource management.
$ & $ #
Garden silk mill ltd.is doing export and import of rough and polished diamond, so we can
classify its activity as following departmentation.
Vead office
(mumbai)
2urat
Foreign
Vareli olwa.
Garden silk mill ltd.have design the human resource planning process in its own manner. The
process is as under:
New branch started.
If the new machine will install than need raises according to capacity of machine. For
example one saran machine needs 4 employees.
Family references
asual callers
Transfer
Promotion
Past employees
)
ampus interview(IDI)
Advertisements
ompetitors
Placement agencies
/ # +
process begins when new recruit are sought and ends when their applications are submitted. The
result is a pool of applicant from which new employee are selected.
J Name
J Address (permanent residential address)
J Address (native place address)
J ontact no. of both addresses
J Educational qualification
J üork experience
J 2trength and weaknesses
J ühere he work last (address)
J Family member
J Expected salary
6 2
üork test
After analysis of application blank, the applicants who select are called for work
test. For production employee work test will be take for 2-3 days. During this test the
applicant works in the company as the employee of the organization.
The work done by applicant is check by production manager. If the quality of work is
good than employee is select and vice versa.
J 2peed of work
J Quality of diamond prepared by him
J regularity
Behavior test
The attitude and behavior is also check along with work test. During the days of
work test applicant¶s behavior is supervise by assistant manager (V÷). Vow applicant is
behave with other employee, Nature of applicant, Attitude, etc. are check during behavior
test.
They uses mixed type of interview that is some questions are structured (predetermined) as
well as unstructured [not pre determine). Moreover in this interview the interviewer allows the
interviewee. On the basis of which he evaluates that candidate. The evaluation is done during the
interview and after the interview.
4
'
The applicant shows the expected salary in the application blank form. The V ÷
Manager fixes the wages/salary structure individually for each applicant. For production
employee salary is set by wages system. The wages is same for employee. The fix salary is also
there for many posts, it will change according to ability of the applicant.
If the salary or wages set by V ÷ Manager is accepted by applicant than he will get
final appointment letter. The date of joining is known to candidate. There is one agreement is
prepared and signed by applicant and V ÷ Manager which include employee code no.,
designation, salary structure, rules and regulation of organization, etc. It is the common
understanding between employee and management that the work and salary offered by
management is accepted by employee
Garden silk mills ltd. have following kind of document for recruitment and selection:
J Application blank
J üages structure
J Physical check up report
J Appointment letter
J Agreement between company and employee
Garden silk mills ltd.has mainly following type of employees, each having different source
of recruitment.
J Vighly skilled
J 2killed
J 2emi skilled
J Unskilled
J Trainee
2
< #
urrent employee is the main strength of the organization. Every person wants
that his familiar and friend will get good job in good work environment. Garden silk mills ltd. is
known as familiar organization for employee. ühenever company has need of new employee,
the V ÷ manager announce by P.A. (public announcement) system about which department will
need job, nature of job, no. of employee needed, date of interview, etc. if the current employee
want to take new employee than he will inform to V ÷ Manager.
Many people want that he will get job in such a big organization.
The work environment is also very good. 2o many people registered their name for future job.
ompany also uses this casual caller application.
A
Transfer is also a very good internal source of recruitment. But transfer is not
applicable for every post. For example, for production staff requirement, transfer is not possible.
Transfer can become a good source for following type of job:
J omputer operator
J Peons
7+#
Promotion is motivational way to fill the job. The people who get promotion will
automatically motivate toward their work. This is specially done when manager level post is
needed to be filling. ühen any departmental or other manager leave the organization for some
reason, than for this post the best person is junior manager or assistant manager because he work
with senior manager from long time.
Many time employees leave the organization because of some personal or other
problem. V ÷ Manager also contacts them for get job again.
) 2
It is a good source for getting highly skilled and trained employees. There are many educational
institutes from where company gets employees. Vere is one table which showing that for which
job which institute if good:
6!" #
For the post like engineer, computer operator, accountant assistant, signers the
organization give advertisement in internal and external both way. Internally, advertisement
is done by PA system and put notice on board. Externally, for some post advertisement given
in the newspaper, prepare a banner with writing that ³wanted good and experienced worker,
date of interview´ and put it on the get of the company. They give advertisement in the local
newspaper also.
A#$
If in other company have good signer than company contact him and give him offer of
good salary and facility. 2igner is the very important person in the production process,
because the final plan of diamond is prepared by signer.
7+ #
For some post company get help of some employment agencies. The post filled by
employment agencies is security staff, peons, cleaning staff, etc.
,& $
ob Description is a written statement showing job title, tasks, duties and responsibilities
involved in a job. It also prescribes the working conditions, hazards, stress that it can produce
and the relationship with other jobs.
In garden silk mills , V ÷ Manager is not prepared any kind of documents related to job
description. Ve just give as brief idea about tasks, responsibilities, working condition, and
facility. 2o we prepared following table showing job description of the two jobs; technician:
average and exceeds asic required standard) standard)
requirements)
1. ob knowledge
2. work out-put
4. Getting alongwith:
(a) cooleagues
(b) 2uperiors
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DEPA÷TMENTAL VEAD :
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2IGNATU÷E
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üelfare means anything done for intellect ional physical, moral and economic
betterment of the workers, whether by employers, by government or by other agencies,
over and above what is laid down by law, or what is normally expected on the part of the
contracted benefits for which workers may have bargained.
' "
J $
Garden silk mill Diamonds have special health officer. This officer runs a clinic
named by garden silk mill ³linic´ situated in building of garden silk mill in which the
employee of garden silk mill and his familiar can get medical facility totally free. If any
employee have a serious diseases and need to do operation at that time if he request for
money than help him financially.
J
In garden silk mill there is no any kind of system to take lunch box from
home and eat during the lunch break. There is big canteen which provides good
and healthy food to every employee with no any charge. The food is prepared
from good quality of material. It is pure vegetarian food. Garden silk mill have
very talented and gentle peons. They provide tea and coffee twice in a day.
J
ühen the employee die or injured in accident at that time the familiar of the
employee will get financially help. The every employee of Garden silk mill is insurance
policy financial help
ühenever employees have need of money the owner is always ready to help them
Garden silk mill gives loan at very low interest for many purposes like marriage, house,
etc.
Garden silk mill runs clinic for outside people also. The poor people come to this
clinic and get treatment at very low charge. If the patient is very poor and not able to pay
charge than Garden silk mill gives him free treatment.
J &
Garden silk mill is also gives donation to many charitable trusts, educational
institute, temple, etc.
& " $#
J Training is bridge the gap between job requirement and present competence of
employee.
J For improve the quality of work, reduce wastage, increase productivity, keep and
maintain control-ordination,
There are mainly three type of training program is organized:
J Induction training
J üork training
J Behavioral training
>
Induction training is specially given when new employee join the organization. ühen
new employee joins the organization, he doesn¶t know that who are the superior and
subordinate, which rules and regulation he has to follow, what is the work environment,
etc. to aware from all this thing to new employee induction training program is organize.
In this program is organized by human resource department. The trainer is decided by the
I2O system.
The following step is followed by V ÷ Manager during induction training.
In this training, the main point of teaching is that how to behave with other. This
training is directly undertaken by V ÷ Manager. Ve understands employees about moral
of human life, good thinking, way to reach success, keep and maintain control-ordination
with superiors and subordinates. For training sometime they called specialist of different
knowledge like mind planner, religious person, psychologist, etc. when the complain
about the behavior of any particular employee is coming at that time, V ÷ Manager
organize meeting between this employee and himself and understand the employee about
above thing. This training is especially helpful to resolve the conflict between employees.
V'
#$ D
Generally, in textile industry we can not see any kind of trade union
every employee comes in the organization independently. There is one organization
which performs as a well wisher of employee of textile industry named by H 2
! I This organization has some guidelines for the environment and
facility of employee of textile industry. According to this association every industry has
to follow some guidelines as below:
J They fix the wage rate. No any organization should have to pay wage lower than.
J Guideline about basic facility like water, canteen, etc.
J Environment should be clear and healthy.
J Provide good uniform and safety device
"
³It is the reward in monetary terms or in the forms which can be expressed or understood
in the monetary terms or payable to or paid to employees for the services rendered by them to the
organization if the expressed or implied terms of employment are fulfilled."
In Garden silk mill, wages and salaries are decided on the base of its requirements, market
rate, ability, knowledge and Government rules & regulation which include basic salary, dearness
allowance, convenience allowance, cumulative income tax, house rent, medical allowances,
professional tax, gratuity, incentive payments i.e. p.f., bonus rate & other benefits mandatory etc
The basic rate of salary decided on mainly three base:
The Garden silk mill is done very good work for motivate the employee as following:
2 !#
üages is the reward in monetary terms or in the forms which can be expressed or
understood in the monetary terms or payable to or paid to employees for the services
rendered by them to the organization if the expressed or implied terms of employment are
fulfilled.
In Garden silk mill, there are both kind of compensation system. Both means piece
wage rate system and fix grade salary.
# is applicable for the employees worker who operate the machines),
labour worker who are fix in contract basis)of production department.
# is applicable for the employees like manager, supervision,
engineer, controlee and receptionist staff, human resource and account department staff,
security, peons and cleaning staff
2üOT analysis means over all evaluation of thecompany. The full form of 2üOT is
2trengths, üeakness,Opportunities and Threats.
2
The company must contact with other retail shops and advertise product. The
company also starts new production plant near the residential area.
The company must have monopoly in the Indian markets. The company must
have very highly talented staff in every department. They must have good credit in the
markets.
The main weakness of the company is the cost of the productivity is very high.
There is also very unnecessary are staff in production department and also in finance
department.
The company has very poor marketing in India. The company does not contact
with other retail shops.
*$$
The high demand of growth of PFY &PFY based fabric in the past and world
trends suggest that it is expected to continue its high growth.
The company hopes to benefit from this growth especial since it has a product
profile that is highly differentiate. The company enjoys a strong brand image with
customers and its proximity to 2urat a key market should provide an advantage.
2hould raw material prices to continue to rise in the industry could slow down.
New expansion by others in the industry could have an impact on margins.
Due to cyclical business trends, profitability will be linked to world wide demand
condition for PFY. A substantial rise in the value of the roué will reduce the cost of
imports and increase competition.
1
There is no requirement to give any kind of suggestion, but as a part of study it is necessary to
give suggestions, which are as under:
Î Vaving a wide market itself in India, so they have to focus on high quality product and
throuth the quality compete the market.
Î Export of the company is not adequate so company should step forward for more exports.
Î It should increase its production so that it can fulfill demand for other states and countries.
Î The company has very poor marketing in India. The company does not contact with other
retail shops so that it should require focus on marketing deparment.
Î The productivity cost of the company is high so they must reduce their productivity cost.
Î They should incease the no. of distributors throughout the country so that their product will
reach throughout the country.
I after having visited GA÷DEN 2ILK MILL PVT LTD. have learnt and experienced a
lot and it was a pleasant experience for me to know the internal aspects of the organization. I
have got a very positive and co-operative response from every one at GA÷DEN 2ILK MILL
PVT LTD.
The get trained in this company, I have not only learned and viewed about the working
of personnel and marketing but have also learned as for as the technical and manufacturing
fields are concerned.
As a MBA student it is compulsory for me to have the best possible knowledge about
industries and about its internal affairs. Due to this industrial visit only I can get the benefit of
visiting and adopting the knowledge by the famous and no:1 company is very effective and
good, their products are of best quality, and pricing policy is also very much appreciable and
done after the study of each & every class of people.
1**J2
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+
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-Gary Dessler
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-I. M. Panday
)12)2
'''
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