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INTRODUCTION TO THE INDUSTRY

The Multi Fiber Arrangement (MFA) that came to an end on January 1, 2005 has opened up a plethora of opportunities for the Indian textile industry. With textiles accounting for almost 20 percent of Indian exports, and the industry and allied areas providing employment to around 80 million people in India, the Indian government is turning its attention to removing the bottlenecks that hinder growth. The textile industry accounted for 22% of India's Rs 2,551 billion exports in 2002-03 and 17 percent of India's total exports of Rs 1,070 billion during April-July 2004. It has been predicted that post-January 2005.India's share in apparel exports would increase from 2.5 per cent in 2003-04 to 5 per cent by 2008. In 2003-04, 75 per cent of India's apparel exports were to USA, the European Union and Canada.

History of Shreeji Textile The existence of the Industry in Surat dates back to 1998. Between 1998-2011 shreeji textile have 28 to 80 looms machines. And 68-70 quality of production in polyester.

Objective of the report:

Objectives of the project tell us why project has been taken under study. It helps us to know more about the topic that is being undertaken and helps us to explore future prospects of that cost of organization. Basically it tells what all have been studied while making the

To analyses the cost and take proper decisions to overcome the problems of cost. To analyses the cost increase incurred due to production in the project.
Increase our knowledge about this topic.

Limitation:
We cannot find out per day cost of the production. Study is restricted to only to textiles. Since the detailed information is not available, it affects the correctness of the analysis. It was difficult getting time and access to senior level Finance/HR managers (who had to be talked to, to get required information) due to their busy schedules and prior commitments. A few of the managers refrained from giving the required information as he considered being from their confidential domains.

Classification of Expenses: Statement of cost for the year period of 1st April 2012 to 15th April 2012
Particulars A)Prime cost Raw Material Direct Wages Direct Expenses Prime cost B)Factory cost Repairing Milligan Electric expenses Steam expenses Factory expenses light bill Factory cost Cost/Unit 6.075 1.668 0.026 7.769 Total cost 535589 147049 2280 684918

0.023 0.33 0.011 0.016 0.057 0.795 9.001

2033 29109 960 1382 5000 70058 793460

C)production cost Extra Telephone bill Stationary Accountant Vakil fee Salary production cost D)Selling & distribution cost Cartage Telephone Salesman Salary Cost of Sales Profit Sales

0.049 0.009 0.011 0.011 0.011 0.011 9.103

4316 800 1000 1000 1000 1000 802576

0.026 0.002 0.079 9.21 1.79 11

2280 200 7000 812056 157734 969790

Process costing

process-1(Twisting) A/c Head per total A/c Head unit to Raw martial(Yarn) 6.075 53558 By transfer to 9 process 2 a/c to wages 0.18 15740 to Salary 0.017 1500 to Repairing 0.006 511 to Milligan 0.06 5109 to Manager 0.07 6147 6.408 56459 6

per total unit 6.408 56459 6

6.408 56459 6

A/c Head To transfer from process 1 A/c To wages To repairing Milling

A/c Head To transfer from process 1 A/c To transfer from process 3 A/c To Wages To salary To Repairing To Milligan

per unit 3.204 282298 By transfer to process 3 A/c 0.07 6256 0.008 700 0.09 8300 3.372 297254 process-3(weaving) per total A/c Head unit 3.204 282298 By transfer to finish good 6.5766 579552

process-2(Warping) total A/c Head

per total unit 3.372 297254

3.372

297254

per total unit 8.029 707780

110406 1.252 0.079 7000 0.009 822 0.113 10000 8.029 707780

8.029

707780

Cost control(Revised cost sheet)

Particulars Prime cost: Raw material Direct wages Direct Exp. Factory cost: Repairing Milligan Electric Exp. Steam exp. factory Exp. Light bill Cost/Unit 6.075 1.02 0.026 7.121 0.023 0.33 0.011 0.016 0.057 0.51 8.068 Total cost 535589 90000 2280 627869 2033 29109 960 1382 5000 45000 711353

Production cost: Extra Telephone bill Stationary Accountant Vakil fee Salary

0.049 0.009 0.011 0.011 0.011 0.011 8.17

4316 800 1000 1000 1000 1000 720469

Selling & distribution cost Cartage Telephone Salesman Salary Cost of Sales Profit Sales

0.026 0.002 0.079 8.277 2.723 11

2280 200 7000 729949 239841 969790

Comparison between cost sheet and revised cost sheet In this cost sheet in found that the figure of direct wages 1, 47,049 and in revise cost it 90,000 so we can try to decrease of 57,049. And same as in Light bill also is 70,058 and revise cost is 45,000 so it also decrease figure 25,058. Recommendation and suggestion In weaving process and water jet machinery should be purchase because production capacity of those machinery is four times higher than looms machines in this way decrease the light bill and direct wages. if average production of one machine is 30 meters if production increase more than 30 so cost will be high but if production will be double so cost will be decrease

BIBLIOGRAPHY www.fosta.com http://www.answers.com/topic/taxetile?cat=biz-fin www.textilesindustries.com Book: Management accounting -Paresh Shah