gardan silk main

Garden Silk Mill Pvt. Ltd.

GARDEN SILK MILLS PVT.

LTD.

:: Developed By ::

Mangukiya Bharat


:: Submitted To ::

Prof. V.B. Shah Institute of Management & R.V.

Patel of Commerce College

ACKNOWLEDGEMENT

I am Bharat Mangukiya the student of Prof. V.B. Shah

Institute of Management College introduce my report on our

summer industrial training.

I make a choice the GARDEN SILK MILLS PVT. LTD. because of

good reputation & good sound will in the market. I have very good

memories with Garden Silk Mills Pvt. Ltd. I spent two months as part of

syllabus of S.Y.B.B.A.


I achieve a lot of during the industrial training it was great

experience that is never forget in my life and it is also helpful in my

future. I thanks to the management of company who give me excellent

guidance for preparing this report.

I thanks to the South Gujarat University for making such type of

syllabus in B.B.A. programme in which students gets practical

knowledge about industries. I want to special thank my guide Mr.

Mahendra Soni I had given me immense pleasure to associate self with

though provoking and absorbing. I am thankful to those who have

directly & indirectly co-operated to finish this venture.

Place: Surat Mangukiya Bharat

G.

Date:

DECLARATION


I undersigned there by declare that the project report on “Garden

Silk Mill” prepared & submitted to Prof. V.B.Shah Institute of

Management College, Amroli towards the partial fulfiiment of BBA.

This is my own work & the report prepared there in is based on the

knowledge & the work done by me in the company during the project

work.

I further declare that it is the result of my findings & research in

the subject & is original in nature. It is not submitted either in part or in

whole to any other institute or university for any degree.


Mangukiya

Bharat G.

Index

Sr. No. ParticularsPage

No.

1 COMPANY DETAILS 5

2 FINANCIAL DEPARTMENT 14

3PRODUCTION

DEPARTMENT46

4MARKETING

DEPARTMENT61


5 PERSONNEL DEPARTMENT 78

6 SWOT ANALYSIS 90


Introduction

History & Development

Activities of the Company

General Information

Categories of Shareholder

Organization Structure


1.1 Introduction of the Company:-

Garden vareli group of companies, one of the leading industrial

groups in India, plays a leading role in the field of fashion fabrics. With

annual sales exceeding U.S. $ 90 million, they sell their products under

a single banner of quality ‘Garden’.

Garden Silk Mills Pvt. Ltd. is one of the leading & oldest

manufactures of synthetic in India. Garden Silk Mills Pvt. Ltd. has been

exporting their products to European markets since late 1970s. The

company has made vertical & horizontal integration from its

establishment.

The company has three production plants : One at Village Vareli,

Near Kadodara Junction, N.H.No.8, The Second at Village Jolva, Near

Bardoli, and another at Garden Mill’s Complex, Sahara Gate, Surat.

Today the company has total 293 its own retail and authorized outlets

all over india.

The company has achieved a very good brand name in Indian &

International market of sarees & dress materials.The company has


achieved sales during financial year 2004-2005 of Rs.65,450.04 lacs &

Rs.45,750.23 lacs during 2005-2006.

1.2 History & Development of the Company:-

The origins of the business go back to 1920 when Mr.Amichand

shah installed the first hattersley looms in surat. Since 1920 the

company expanded not only by increasing the production capacity and

workforce of the business but also by pioneering new material and

processes.

The present chairman and managing director of Garden Silk Mills

Pvt. Ltd. Mr.Praful Shah is the youngest son of Mr. Amichand Shah.


Mr.Praful Shah taken qualification in USA in 1965 after which he

joined the company, up to that date Garden Silk Mills Pvt. Ltd. had

activities of the company to include processing cloth by introducing

dying, printing and finishing processes. As a result of this, the company

was able to supply finished textiles for the first time.

In the 1970s, the company recruited fine arts graduates from

leading institutions. An art studio was set up. The company started

introducing its own design and supplying these design to the market.

Prior to this the design produced had been a function of customer

demand and from this manufacturer. This was the first step in building a

vertically integrated synthetic textile manufacturer and designer.

This move in the early 1970s coincided with the opening of the

first retail shop in surat. The extension of the policy of vertical

integration into the retailing sector had advantages of uniform pricing,

close market monitoring, improving communication between

manufacturer and consumer, and above all exerting downward pressure

on the final selling price. The dedicated retail network now extends to

some 293 authorized outlets.


In the late 1970s, the company started exporting its product to

European markets, given the size of the domestic market, the proportion

of products that are exported remains low at approximately two percent.

The company is in the process of further developing markets in Africa,

Central and Astern Asia.

In 1980, the company developed a new site, Vareli, some 12

kilometers away from surat. This has become the main manufacturing

plant and investment of more than Rs.2.0 billion has been made. Most

of this expenditure has been targeted at the expansion and

modernization of plant and equipment, particularly in the weaving and

yarn preparatory sections. As a result, the company today has one of the

most modern and sophisticated textile plants in India.

The Company was first to setup a Polyester filaments yarn project

in South Gujarat. The project is capable of producing multi-filament &

micro- filament yarn having a capacity of 5000 tones per annum in

collaboration with non-vale leasing ago old Switzerland. This project

has a special significance for the company, as polyester filament yarn is

the basic raw material for the product manufactured by the


company.The company was also first in producing of two for one

twister in India.

The company's production facilities boast of one of India's most

sophisticated textile plants at vareli, surat (western india). Its weaving

plant comprising nissan and tsudakoma waterjet looms - the highest

number of waterjet looms under one roof in india - and rapier looms,

automatic shuttle change looms etc, high-tech yarn preparatory

machines viz, ziro-twist-sizing, draw-warping, texturising and twisting

machines, have a capacity of over 42 lac meters/month of greige fabric.

The plant has an ISO 9002 certification by bvqi. The company also

markets high quality dyed and printed fabrics which it gets

manufactured from associated firms.

1.3 Activities of The Company:-

The company is primarily engaged in the manufacture of synthetic

textile, sarees and dress materials mainly made of polyester yarns and

certain intermediate products. Garden Silk Mills 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.


1.4 General Information of the Company:-

Board of Director:-

Mr.Praful A. Shah Chairman & M.D.

Mrs.Shilpa P.Shah Executive Director

Mr.S.J. Bhesania Executive Director

Mr.Harshad F. Shah Executive Director

Mr.Sanjay S. Shah Executive Director

Mr.Alok P. Shah Executive Director

Mr.Rajen P. Shah

Mr.J.P.shah

Mr.Yatish Parekh

Mr.Arunchandra N. Jariwala

Mr.Sunil S. Sheth

Mrs.Smita J.Shah

Mr.Madanlal U.Lankapati


Mr.Suhail P.Shah

Mr.Y.N.Rammurthy Nominee of LIC of India

Company secretary:-

Kamlesh B. Vyas

Auditors:-

Messrs Natvarlal Vepari & Co.

Charted Accountants,Surat.

Bankers:-

Bank of Baroda

Allahabad Bank

State Bank of saurashtra

Bank of india

State Bank of India

Corporation Bank

Union Bank of India


Registered Office:-

Garden Mills Compound,

Sahara Gate,

Surat-395010.

Corporate office:-

Manek Mahal,

90, Veer Nariman Road,

Mumbai-400020.

Plants:-

i) Garden Mills Compound, Sahara Gate, Surat

ii) Village Vareli, Tal.Palsana, Dist.Surat

iii) Village Jolva, Tal.Palsana, Dist.Surat

Registrar & Transfer Agent:-

MCS Limited,

Neelam Apartment,

88, Sampatrao Colony,Alkapuri,

Baroda 390005.


1.5 Categories of Shareholders:-

CategoryNo. of

shares holdHolding strength

Promoters 20596819 53.79

Mutual funds & UTIi 15050 0.04

Bank Financial Ins. & Insurance Co.

1556486 4.06

FIIs 62914 0.17

Private Bodies Corporate 1443422 3.77

NRI’s/OCB’s 2571140 6.72

Indian Public 11359530 29.67

GDR 614525 1.60

Others:-

Trust 500 0.00

Clearing Members 70174 0.18

Total 382902560 100.00


1.6 Organization Structure:-

Chairman & Managing Director

Finance

Director

General Manager Marketing

Import & Export

Director

Production

Director

Head of the Departmen

t

Staff


Introduction

Meaning

Traits of Financial Statement

Use of Financial Statement

Limitation of Financial Statement

Comparative Financial Statement

Common size Measurement

Ratio Analysis

2.1 INTRODUCTION OF FINANCIAL

STATEMENT:-


The major steps associated with accounting work are four as presented

below.

Analysis of each and every transaction to ascertain the amount

involved and also the account to be detailed and credited.

Journalisation, posting to ledger account and the preparation

of trial balance

Preparation of financial statement

Analysis and interpretation of financial statements

2.2 MEANING:-

“Financial statement are interpreted as those statement which show

both the performance and the financial position. They include balance

sheet, income statement, fund statement, or any supporting statements

or other presentation of financial data derived from accounting records.”

In brief it includes the figures in summary form of various assets

held by the company and also its liabilities towards outsides including

the owner at the end of the last day of an accounting year. Income

statement or P & L account is a statement which shows in summary

form, the revenue and expenses of a business entity for an accounting

year. It shows the sales revenue, cost of sales, gross profit, operating

expenses, operating profit, non-trading income and expenses, net

income or loss, tax liabilities, etc.


In brief Profit & Loss Account presents information about the

result or outcome of business operation during an accounting year by

matching expenses incurred during an accounting year against the

revenue earned in the last year.

These two basic financial statements are supported by a number of

schedules annexure suplemantary statements, etc. Supplementing the

data contained in the balance sheet and the income statement. Therefore

all these in addition to P&L account and Balance Sheet fall within the

scope of financial statement.

2.3 TRAITS OF FINANCIAL STATEMENTS:-

Its very well known that the financial statement basically refer to

balance sheet and P&L account or income statement of course this two

basic statement are supported by number of schedules.

The figures includes in the financial statement are influenced by

three important factors. They are

1. Recorded facts

2. Generally accepted accounting principles

3. Personal judgements

1.Recorded Facts :-


It may be remembered here that the preparation of financial

statement is made on the basis of trail balance which in turn is prepared

on the basic of balance in various ledger account. As is known ledger

account are prepared by posting journal entries recorded facts here

denote the figures recorded in journal books, ledger account and trail

balance. The financial statement are prepared on the basis of entries in

these book of account any figure wchih does not find place in the book

of account. Any figure which does not find place in the book of account

is usually not taken to the financial statement.

2.Generally Accepted Accounting Principles (GAAPs) :-

GAAPs are in the form of guidelines or rules which are to be used

as standards for recording business transaction in the books of account

and their fair presentation in the financial statement. Because the

financial statement have to be prepared in conformity with the gaps.

These includes principles, concepts, conventions and assumption.

Consequently the figures in the financial statement are influenced by the

GAAPs.

3.Personal Judgements :-For a few number of important accounting problems accounts find

a number of alternative solution each being considered by the completent authorities as based on sound principles.

So that the clear financial statement reflects a combination of recorded facts and figures. Gaaps and personal judgement and these


three influence the financial data substantially.Therefore whenever we deal with financial statement. They are to dealts in the light of these three factors.

2.4 USE OF FINANCIAL STATEMENT:-

The following are the important objective or urge of financial

statements.

1. Useful Information :-

To provide useful information which can gainfully be utilized to

predict, compare and evaluate the earning capability.

2. Sufficient Information :-

To provide sufficient information which can be utilized by both the

internal and the external parties to predict, compare and evaluate the

financial soundness of the entity. They should also enables the parties to

predict, compare and evaluate the potential funds flow in terms of both

amount, time and associated uncertainty.

3.Required Information :-


To provide required information to enable the users of financial

statement to evaluate the ability or performance of managerial personnel

to utilize the company’s resources for the purpose of accomplishes the

primary corporate urge.

4. Primary Information :-

To provide information primarily to those who have limited

authority or resources to obtain the required information.

2.5 LIMITATION OF FINANCIAL

STATEMENT:-

1. Fulfillment of Statutory Requirements :-

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.

2. Historical Data :-

Financial statement comprises of only the effects on the items of

income statement or balance sheet or both. In brief of variegated types

of transaction business. Financial and investment that have taken place

during an accounting year.

3.Interim Reports :-

As is known the financial statement are prepared annually.

Therefore they are not capable of furnishing either the comprehensive or

the correct information about the profit, loss, assets, liability, etc.

Because actual profit computed only after winding up of business.

4. Emphasis on only quantitative information :-

Financial statement records dissimilar transaction which can be

expressed in terms of money. Of course, these monetary records or

statement are often supplemented by other information. However, the

financial statement exclude the non-monetary facts or attributes which

can’t accurately be expressed in terms of monetary unit when if they are

very important.


5. Generally Accepted Accounting Principles :-

Since the preparation of financial statement is governed by the

gaaps and since there are number of diverse accounting solution to each

of a few important problems, financial statement do not depict the

reality.

6. Personal Judgement :-

Accounting provides a number of avenues to the personal in charge

of preparation of financial statement to influence the figures.

7. Opportunities for Manipulation :-

One can find a number of opportunity for manipulated by the

management wherin the financial statement can be prepared in such a

way which will suit the wins of management. It is because of the

presence or availability of diverse accounting solution to each of few

major items of financial statement.

To analyse and interpret the data in the financial statement for

analyse the financial statement any one or more method used

1. Comparative financial statement


2. Common size measurement

3. Ratio analysis

2.6 Comparative Financial

Statement :-

Comparative financial statement are prepared by providing column

not only for the year just ended but also for the years preceding the year

just ended. Besides columns are also normally provided for changes

over the year both absolute and relative with the help of these

statements. Its possible to find out not only the balance of account as on

different periods but also the extent of their increase or decrease

between these dates. The changes one can observe indifferent items

represent the outcome of operations interaction amongst assets,


liabilities and capital. The figures in the comparative statement may

conveniently be used for identifying the direction of changes and also to

study the trends in different indicater of performance of an organization.

On this basis the management can easily identify the areas in which the

organization has improved its performance and the areas in which it has

failed. The reasons for the failure can also be identified. Further the

reasons for the failure can be classified into controllable and non-

controllable.

Merit :-

1. These statements indicate trends in sales, cost of production, profit,

etc. Helping the analyst to evaluate the performance, efficiency and

financial condition of the undertaking.

2. Comparative statement can also be used to compare the position of

the firm with the average performance of the industry or with other

firm.

Demerit :-

1. Inter firm comparision may be misleading in the firms are not of the

same age and size follow different accountng policies in relation to

department, valuation of stock, etc. And do not cater to the same

market.


2. Inter period comparision will also be misleading if the period has

withnessed frequent change in accounting policies.

Comparative Profit & Loss A/c for the year ended 30 th June, 2005-2006

(Rs. In Lacs)


Particulars 2005-06 2004-05IncomeSales & Job Charges 107923.89 75429.66Less : Excise Duty On Sales 12437.94 11905.85

95485.95 63523.81Income From Financial Operation 64.00 141.36Other Income 469.06 466.74

Total 96019.01 64131.91ExpenditureConsumption of RM 62771.75 39388.18(Increase)/Decrease In Stock 1219.76 1475.99Purchases 1299.29 4384.02Excise Duty 160.51 283.25Mfg. & Other Expenses 20933.27 12947.94

Total 83945.06 57912.88Profit before Financial Charges, Dep. &Tax

12073.95 6219.03

Less: Financial Charges (Net) 4020.11 1625.72Profit before Dep. & Tax 8053.84 4593.31Less: Depreciation 4866.13 3617.11Profit before Tax 3187.71 976.20Less :Provision for Current Tax 65.00 103.60 Wealth Tax 10.00 0.00 Deferred Tax 842.26 21.36 Fringe Benefit Tax 60.00 15.00Profit after Tax 2210.45 878.96Add: Balance B/F 2882.91 2708.87Balance for Appropriation 5093.36 3587.83AppropriationProposed Dividend 574.36 574.36Tax on Proposed Dividend 80.56 80.56Transfer to General Reserve 120.00 50.00Balance Carried to Balance Sheet 4318.44 2882.91

Total 5093.36 3587.83


Comparative Balance Sheet as on 30 th June, 2005

& 2006

(Rs. In Lacs)


Particulars 2005-06 2004-05SOURCES OF FUND Shareholders’ Fund Share Capital 3829.06 3829.06 Reserves & Surplus 30414.31 28858.78

34243.37 32687.84 Loan Funds Secured Loan 49321.99 48496.87 Unsecured Loan 14585.87 10672.30

63907.86 59169.17Deferred Tax Liability 5212.72 4370.46

Total 103363.95 96227.47APPLICATION OF FUND1. Fixed Assets Gross Block 106157.86 71929.63 Less: Depreciation 33648.12 28865.62 Net Block 72509.74 43064.01 Capital WIP 2496.08 28791.75

75005.82 71855.762. Investment 7286.35 7473.023. Current Assets, Loans & Adv. Inventories 9708.08 6585.39 Sundry Debtors 4844.93 2963.00 Cash & Bank Balance 2844.30 3136.44 Loan & Advances 10329.64 9914.39

27726.65 22599.22 Less: Current Liabilities 5426.15 4627.25 Provision 1398.75 1302.26

6824.90 5929.51Net Current Assets 20902.05 16669.714. Miscellaneous Expenditure 169.73 228.98

Total 103363.95 96227.47


2.7 Common size measurement :-

It is known fact that the amount of capital liabilities, sales

turnover, etc. Vary from one period to another and from one entity to

onther when they differ. It is not advisable to comment on the basis of

performance.

Financial statement when read with absolute figures are not easily

understandable. Sometimes they are even misleading. It is therefore

necessary that figures reported in these statement should be converted in

to percentage to some common base. In P&L Account sales figure is

assumed to be equal to 100 and all other figures are expressed as

percentage of sales.

Similarly in balance sheet the total of assets or liabilities is taken

as 100 and all the figures are expressed as percentage of the total. This

type of analyses is known as vertical analysis. This is a static

relationship existing at a particular date. The statement so prepared are

known as comman size statement.


Common size Profit &Loss A/c for year ending 30 th

June, 2005-2006

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

2006

Particulars 2005-06(%) 2004-05(%)IncomeSales & Job Charges 103.21 101.60Less : Excise Duty 4.48 4.00

98.73 97.61Income From Financial Operation

0.82 0.76

Other Income 0.45 1.63Total 100.00 100.00

ExpenditureConsumption of RM 55.90 53.11(Increase)/Decrease In Stock 0.64 (0.96)Purchases 8.58 6.96Mfg. & Other Expenses 24.47 25.25Profit before Financial Charges, Depreciation & Tax

10.41 15.63

Total 100.00 100.00

Particulars 2005-06(%) 2004-05(%)SOURCES OF FUND1. Shareholder Fund Share Capital 8.77 8.59 Reserve & Surplus 69.24 59.78 Secured Loan 21.79 20.94 Unsecured Loan 0.20 10.69

Total 100.00 100.00Application of Fund1. Fixed Assets 56.18 63.572. Investment 13.20 9.133. Current Assets 37.78 44.13 Less: Current Liabilities 7.28 9.184. Deferred Tax Liability 0.00 (7.87)5. Misleading Expenses 0.12 0.22

Total 100.00 100.00


Interpretation :-

The current assets are increase as comapre to previous year but

investment is decrease from 13.20 to 9.13.

The secured loand is decrease as comapre to previous year but

unsecured loan is increase i.e. from 0.20 to 10.69

Income from financial operation are decreased but other income

are increased i.e from 0.45 to 1.63

Compnay’s reserve and surplus is decreased as compare to

previous year i.e. 69.24 to 59.78.

2.8 Ratio Analysis:-

A ratio refers to the establishements of relationship between any two inter-related variables. Ratio analysis stands for the process of determining and presenting the relationship of items and groups of items in the financial statements.

Importance of Ratio Analysis :-


1.Useful in fiancial position analysis :-

Accounting ratios reveal the financial position of the concern. This helps the banks, insurance companies and other financial institutions in lending and making investment decisions.

2.Useful in simplifying accounting figures :-

Accounting ratios simplify, summarise and systematise the accounting figures in order to make them more understable and in lucid form. They highlight the inter-relationship which exists between various segment of the business as expressed by accounting statements.

3.Useful in assessing the operational efficiency :-

Accounting ratios help to have an idea of the working of a concern. The efficiency of the firm becomes evident when analysis is based on accounting ratios. They diagnose the financial health by evaluating liquidity.

4.Useful in forecasting purposes :-

If accounting ratios are calculated for a number of years, then a trend is established. This trend helps in setting up future plans and forecasting .

5.Useful in locating the weak spots of the buz :-

Accounting ratios are of great assistance in locating the weak spots

in the business even though the overall performance may be efficient.


Weakness in financial structure due to incorrect policies in the past or

present are revealed through accounting ratios.

Limitation of Accounting Ratios:-

1.False results :-Accounting ratios can be correct only if the data are correct.

Sometimes, the information given in the financial statements is affected by showing position better than what actually.

2.No idea of probable happenings in future :-Ratios are an attempt to make an analysis of the past financial

statements, so they are historical documents. Now-a-days keeping in view the complexities of the business, it is importanat to have an idea of the probable happening in future.

3.Variation in accounting methods :-The two firms results are comparable with the help of accounting

ratios only if they follow the same accounting methods. Comparision will become difficult if the two concern follow the different method of providing depreciation or valuing stock.

4.Price level changes :-Changes in price levels make comparision for various years

difficult. Because of rising prices fixed assets being shown at cost and not at market price.

5.No common standards :-


It is very difficult to lay down a common standard for comparision because circumstances differ from concern to concern and the nature of each industry is different.

6.Different meaning assign to the same term :-Different firms, inorder to calculate ratio may assign different

meanings. This may effect the calculation of ratio in different firms and such ratio when used for comaparision may lead to wrong coclusion.

7.Ignores qualification factors :-Accounting ratios are tools of quantitative analysis only. But

sometimes qualification factors may surmount the quantitative aspects. The calculation derived from the ratio analysis under such circumstances may get distorted.

Classification of Ratio:-

Classification of Ratio

Profit & Loss A/c Ratio

Balance Sheet Ratio

Inter-Statement Ratio

1. Gross Profit Ratio2. Net Profit Ratio3. Operating Ratio4. Stock Turnover Ratio

1. Current Ratio2. Liquid Ratio3. Debt Equity Ratio4. Propritory Ratio5. Capital Gearing Ratio

1. Return on Investment Ratio2. Return on Propritory Fund Ratio3. Net Profit to Total Assets Ratio4. Creditors Turn Over Ratio5. Debtor Turnover Ratio


A. Profit & Loss A/c Ratio

1.Gross Profit Ratio :-


This ratio establishes the relationship between gross profit on sales and net sales i terms of percentage indicating the percentage of gross profit earned on sales.

Gross ProfitGross Profit Ratio = ------------------- * 100

Net Sales

Years Gross profit (a)

Net sales (b)

Ratio (%) (a/b)

2001-02

5727.85 56871.04 10.07

2002-03

3508.31 44044.16 7.97

2003-04

3351.06 41347.01

8.10

2004-05

4281.98 43459.79 9.85

2005-06

5648.76 46167.17 14.40


Interpretation :-

The gross profit of the company is incresing day by day. It is

increase to 14.40% in 2005-06 as comapre to 2004-05 i.e 9.85%.

2.Net Profit Ratio :-

This ratio establishes the relationship between the amount of net profit or net income and the amount of sales revenue.

Net Profit Net Profit Ratio = ------------------- * 100

Net Sales

Years Net profit (a) Net sales (b) Ratio (%) (a/b)2001-02 1664.11 58771.04 2.832002-03 817.40 46144.16 1.772003-04 598.50 39947.01 1.502004-05 2123.84 44359.79 4.792005-06 2949.51 45467.17 6.49


Interpretation :-

The net profit of the company is incresing day by day. In 2003-04

it was decrease to 1.50% but company take corrective action so that it

continuously increase from that time.

3.Operating Ratio :-


This ratio takes into account the aggrerate of manufacturing cost of goods sold and other operating expenses on the one hand, and the net sales revenue on the other.

Cost of SalesOperating Ratio = ------------------- * 100

Sales Revenue

4.Stock Turnover Ratio :-

Inventory turnover ratio which is also called stock turnover ratio or

stock velocity establishes the relationship between the cost of goods

Years Cost of sales(a)

Sales revenue (b)

Ratio (%) (a/b)

2001-02 53698.73 59071.04 90.91

2002-03 41756.32 45978.16 90.82

2003-04 33218.51 39347.01 84.42

2004-05 36249.68 43459.79 83.41

2005-06 34277.06 46167.17 74.25


sold during a given period and the average of the costs of openaing and

closing stocks.

Cost of Goods SoldStock Turnover Ratio = --------------------------

Average Inventory

Years Cost of Goods Sold (a)

Avg. Inventory (b)

Ratio (a/b)

2001-02

54311.84 3431.33 15.83

2002-03

41287.08 3486.77 11.84

2003-04

37128.80 3107.66 11.95

2004-05

41525.54 2491.48 16.67

2005-06

36506.16 2673.68 13.65


B. Balance Sheet Ratio

1.Current Ratio :- The ability of a company to meet its short-term commitment is

normally assessed by comparing current assets with current liabilities. The current ratio establishes the relationship between the current assets and the current liabilities. The ideal ratio is 2:1.

Current Assets Current Ratio = -------------------------

Current Liabilities

Years Current

Assets (a)Current

Liabilities (b)Ratio (a/b)

2001-02

15872.35 3924.37 4.04

2002-03

15316.44 3702.93 4.14

2003-04

13526.96 4036.77 3.35

2004-05

10506.54 3198.01 3.29

2005-06

13836.64 4012.50 3.45


Interpretation: In last five years the current ratio is between 3.29 to 4.14 which

was very good for the company. But in the last year it was 3.45 while it

was highest in the 2002-03 i.e. 4.14 so compnay should take corrective

action for increase the ratio.

2.Liquidity Ratio :-

A liquidity ratio is also known as acid-test ratio, therefore, used as a complementary ratio to the current ratio. The ratio is concerned with the establishment of relaionship between the liquid assets and the liquid liabilities. The ideal ratio is 1:1

Liquidity AssetsLiquidity Ratio = ------------------------

Curent Liabilities

Years Liquidity Ratio(a)

Current Liabilities(b)

Ratio(a/b)

2001-02

8159.57 3829.37 2.13

2002-03

7455.46 3630.93 2.05

2003-04

7863.99 4008.77 1.96

2004-05

4673.20 3178.01 1.47

2005-06

7881.12 4093.50 1.93


Interpretation :

In last five years the liquidity ratio is between 1.47 to 2.13 which

was higher than 1:1 and it is satisfactory. But in the last year it was 1.93

while it was highest in the 2001-02 i.e. 2.13 so compnay should take

corrective action for increase the ratio.

3.Debt Equity Ratio :-

This ratio is calculated to measure the relative proportion of outsiders’s funds invested in the company. This ratio determined to ascertain the soundness of long term financial policies of that company and is also known as external-internal equity ratio.

Long Term Debt Debt Equity Ratio = -------------------------

Shareholder Fund

Years Long term debt(a)

Shareholder fund(b)

Ratio(a/b)

2001-02

4965.11 34957.49 0.14

2002-03

5238.49 35284.66 0.15

2003-04

7417.12 32682.88 0.23

2004-05

8304.24 34053.66 0.24

2005-06

8846.48 30482.55 0.29


Interpretation :

In last five years the debt equity ratio is between 0.14 to 0.29

which shows that the claim of creditors are less than that of owners but

the claims of creditors is increases in last five years.

4.Propritory Ratio :-

This ratio shows the relationship between shareholder’s fund and total assets. The result clearly shows the share of owners in the total assets of the company. When the proprietary ratio is substracted from one, the resultant figure represents the share of outsider’s claim on the assets of the company.

Shareholder Fund Propritory Ratio = --------------------------

Total Assets


Years Shareholder fund(a)

Total assets(b)

Ratio(a/b)

2001-02

34957.49 49330.42 0.71

2002-03

35284.66 50676.34 0.70

2003-04

32682.88 46590.91 0.70

2004-05

34053.66 46828.82 0.73

2005-06

30482.55 52184.81 0.58

Interpretation :

In last five years the propritory ratio is between 0.58 to 0.73. It was

almost stable during last four years but in 2005-06 it was 0.58 which

shows a greater risk to creditors.


5.Capital Gearing Ratio :-

The term capital gearing is used to describe the relationship between fixed interest bearing securities, and the equity shareholder’s funds. Therefore this ratio establishes a meaningful relationship between the funds bearing fixed interest on the one hand, and the equity shareholder’s funds on the other.

Fixed Interest Bearing Fund Capital Gearing Ratio = ---------------------------------------

Equity Share Capital

Years Fixed int. Fund (a)

Equity capita (b)

Ratio (a/b)

2001-02

4965.11 3829.06 1.30

2002-03

5238.49 3829.06 1.37

2003-04

7417.12 3829.06 1.94

2004-05

8304.24 3829.06 2.17

2005-06

8846.48 3829.06 2.31


Interpretation :

The capital gearing ratio is between 1.30 to 2.31 during last five

years. In 2005-06 it was 2.31, the capital gearing is said to be high, this

position is under capitalisation.

C. Inter-Statement Ratio

1.Return On Investment Ratio :-

This ratio is an indicator of the earnign capicity of the capital employed in the business. This ratio reflects the overall efficiency with which capital is used.

PATI Return on Investment Ratio = -----------------------

Capital Employed

Years Profit after tax Capital Ratio(a/b)


&interest(a) employed(b)2001-

021764.11 32635.36 5.41

2002-03

837.40 33771.26 2.48

2003-04

593.50 31193.36 1.90

2004-05

2061.84 31445.76 6.56

2005-06

2926.51 38007.83 7.70

Interpretation :

The return on investment is higher in last year i.e 7.70 times which

is good sign for the company but it was very low in 2003-04 which is

increase in couple of years.


2.Return On Propritory Fund Ratio :-This is an important ratio as it shows the amount of profit available

to the shareholders which determines the rate of dividend.

EAT Return on Propritory Fund Ratio = ------------------------

Shareholder Fund

Years Earning after tax (a)

Shareholder fund (b)

Ratio (a/b)

2001-02

1764.11 34957.49 5.05

2002-03

837.40 35284.66 2.37

2003-04

593.50 32682.88 1.82

2004-05

2061.84 34053.66 6.05

2005-06

2926.51 30482.55 9.60


Interpretation :

The Return On Propritory Fund Ratio of last five years shows that

sharholders gate 9.60 profit which is very good for company’s image.

But it was very low in 2003-04 i.e. 1.82.

3.Net Profit to Total Assets Ratio :-

This ratio establishes the relationship between the net profit and otal assets. This ratio tries to findout how efficient the company was in utilizing the funds to generate or earn profit.

Net profit Net Profit to Total Assets Ratio = ------------------

Total assets


Years Net profit (a) Total assets (b) Ratio (a/b)2001-02 1764.11 49330.42 0.04

2002-03 837.40 50676.34 0.02

2003-04 593.50 46590.91 0.01

2004-05 2061.84 46828.82 0.04

2005-06 2926.51 52184.81 0.06

4.Creditors Turnover Ratio :-

This ratio, also known as payable turnover ratio establishes the relationship between the net credit purchases and the average trade creditors.

Creditors


Creditors Turnover Ratio = ------------------------- * 365 Net Credit Purchase

Years Creditors (a)

Credit purchase (b)

Ratio (a/b)

2001-02

2412.40 36331.15 24.24

2002-03

2322.75 26805.11 31.63

2003-04

2631.58 19599.14 13.43

2004-05

1696.07 24158.08 7.02

2005-06

2575.36 23612.85 10.91


Interpretation :

Creditor turnover ratio was 10.91 times in 2005-06 which shows

that the disbursment of money is faster in the company. It was very

slow in 2001-02 when ratio was 24.24 times.

5.Debtors turnover ratio :-

Debtor turnover ratio, also known as receivables turnover ratio or debtors velocity establishes the relationship between the net credit sales of the year and the average receivable.

Debtors Debtors Turnover Ratio = ----------------------- * 365

Net Credit Sales


Years Debtors (a) Credit sales (b) Ratio (a/b)2001-02 6309.55 58871.06 39.12

2002-03 6673.30 46044.16 52.90

2003-04 6532.28 40347.01 59.09

2004-05 3120.00 44459.79 25.61

2005-06 3423.73 45167.17 27.67

Interpretation :

Debtor Turnover Ratio was 27.67 times in 2005-06 which shows

speady collection of money. But it was lower in 2004-05 i.e. 25.61. so

company should take corrective measures.

In last five years the Current Ratio is between 3.29 to 4.14 which was very good for the company.


In last five years the Claim Of Creditors are less than that of owners but the claims of creditors is increases in last five years.

The Propritory Ratio was almost stable during last four years.

The Capital Gearing Ratio in 2005-06 was 2.31, the capital gearing is said to be high, this position is under capitalisation.

The Return On Propritory Fund Ratio of last five years shows that sharholders gate 9.60 profit which is very good for company’s image.

Loan and Advances are decreases in last year as compare to 2001.

Reserve & Surplus of the company is decrese in the last year.

In last year the Current Ratio was 3.45 while it was highest in the 2002-03 i.e. 4.14 so compnay should take corrective action for increase the ratio.

In last year the Liquidity Ratio was 1.93 while it was highest in the 2001-02 i.e. 2.13 so compnay should take corrective action for increase the ratio.

The Propritory Ratio in 2005-06 was 0.58 which shows a greater risk to creditors. So compnay should take care to increase ratio.


The Capital Gearing Ratio shows that the position is under capitalisation. So compnay should use its capital effectively.

As far as cash management is concerned, cash inflow is efficiently undertaken, but improvement in cash out flows i.e. payments & disbursement of cash requires considerable attention.


Particulars 2001-02

2002-03

2003-04

2004-05

2005-06

IncomeSales & Job Charges

58871.04

46044.16

40347.01

44459.79

45167.17

-Excise Duty-------- -------- ---------

1930.04

1776.57

Income From Financial Operation

1511.00 119.62 474.02 352.57 337.77

Other Income 357.65 131.61 158.83 195.16 726.55Total 60739.6

946295.

3940979.

8643077.

4844454.

92ExpenditureConsumption of RM

36230.37

26335.24

19543.91

24079.43

23611.85

(Increase)/Decrease In Stock

(152.23)

(364.91)

1658.33

273.70 424.70

Purchases1826.74

1327.39

3488.50

3698.66

3093.56

Mfg.& Other Expenses

17406.94

15089.36

12798.06

10543.71

11225.45

Total 55311.84

42387.08

37528.80

37506.16

38595.50

Profit before Financial Charges, Depre. & Tax

5427.853908.3

13451.0

64481.9

86948.7

6

Less: Financial Charges

2304.961798.4

11446.2

7906.26 787.05

Profit before Dep. &Tax

3122.892109.9

02004.7

93575.7

26161.7

1Less: Depreciation

1293.031263.4

41408.2

91511.3

82245.2

1Net Profit before Tax

1829.86 846.46 596.502064.3

43916.5

Less: Provision for Tax Current Deferred Earlier Years

65.750.000.00

9.060.000.00

3.000.000.00

2.500.000.00

3.00986.01

0.98

Net Profit after Tax

1764.11 837.40 593.502061.8

42926.5

1


Annexure – A: Profit & Loss A/c


Annexure – B: Balance Sheet

Particulars2001-

022002-

032003-

042004-

052005-

06Sources of Fund1. Shareholder Fund Share Capital 3829.0

63829.0

63829.0

63829.0

63829.0

6 Reserve & Surplus

31128.43

31455.80

28853.62

30224.60

26653.49

34957.49

35284.86

42682.68

34053.66

30482.55


2. Loan Funds Secured Loan 9118.0

38772.4

89645.3

79512.7

59336.4

8 Unsecured Loan 1425.5

32988.0

7254.09 84.40

4764.55

10543.56

11760.55

9899.46

9597.15

14101.03

Total 45501.05

47045.41

42582.14

43650.81

44583.58

Application of Fund1. Fixed Assets Gross Block 33242.

8835272.

7337178.

2139640.

8843320.

78 Less: Depreciation

13473.61

14580.72

15891.57

16594.55

18783.39

Net Block 19769.27

20692.01

21286.64

23046.33

24537.39

Less: Lease Adjs. A/C

30.91 69.50 122.47 6.89 6.89


Capital WIP 1654.02

1863.24

542.001482.7

93811.1

921392.

3822485.

7521706.

1724522.

2328341.

692. Investment 3261.2

73049.8

63400.2

85760.9

64070.3

03. Current Assets Inventories 6912.7

87460.9

85631.9

75428.3

45878.5

2 Sundry Debtors 6309.5

56673.3

06532.2

83120.0

03423.7

3 Cash & Bank Balance

1732.94

655.971248.2

31553.2

04457.3

9 Loan & Advances Other Current Assets

9560.06

117.08

10169.44

126.19

7936.42

83.48

6390.40

0.00

5915.06

0.0024632.

4125085.

8821432.

3816491.

9419674.

70 Less: Current Liabilities

2972.47

2886.68

3214.35

2323.87

3325.99

Provision 856.90 744.25 794.42 854.14 761.513829.3

73630.9

34008.7

73178.0

14093.5

020803.

0421454.

9517423.

6113313.

9315581.

204. Deferred Tax Liability 0.00 0.00 0.00 0.00

-3507.7

35. Misleading Expenses

44.36 54.85 52.08 53.69 98.12

45501.05

47045.41

42582.14

43650.81

44583.58


Organization Structure & Activities

Visit Manufacturing Unit & Engineering Unit

Types of Product

Types of Raw-Material Used


Production Process & Flow Chart

Machine Operator and Comment on Related Micro Motion

Aspects

Types of Material Handling Equipment

Inventory Management for Raw-Material & Finishing

Material

Co-ordination Between

Quality Assurance Measurement

3.1 Organization Structure & All Activities:-

M.D.

DIRECTOR


All Activities in Production Department:-

MANAGER

ASSISTANCE MANAGER

SUPERVISOR


All activities which are carried our in Production Department are as

follows:-

Sampling for Production

Sampling for Production Department

Market(Customer)

Marketing Department

Dispatch to Customer

Dispatch to Marketing Department

Production (Producer)

Production Starts

Approval to market via Marketing Department


First of all marketing people collect information from market

(customer) which was used for production & also send design to

producer for production of goods.

All activities like first marketing department collect order from

customer and also own created designs directly send to production

department. Production department also ask for certain design to

marketing people.

In short first marketing people send design as per design received

in production unit and after the confirmation received from marketing

department production start.

After production start then all the products dispatch to marketing

department. Marketing department send all the goods to their customer.


And also some product sends as for sample. So that customer knows

about the product and sends order for that order.

3.2 Visit to the Manufacturing Unit and Engineering

Unit:-

PLANT LOCATION:-

Vareli Village,

Nr. Kadodara Junction

N.H.No.8

Factors should be considered while selecting the Plants is:-

I. Availability of Raw-Material:-

Company have their own production plant for raw-material and

remaining part of raw-material can be purchase from outside from

Reliance Industries, Bombay Industries and also some part of raw-

material and ingredients can be import from other country.

II. Nearness to Market:-


All the cloths prepared in the company can be sending as per order

and some part can be exported in other country. Generally most of order

Company received in Bombay Market which was measure market for

the company.

III. Availability of Power:-

Company has their own power generation so company does not

have any problem relating to power.

IV. Transport Facility:-

Companies have their own buses and company’s plants are near to

N.H.NO.8. So company benefited by this way.

V. Suitability of Climate:-

Company’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.

VI. Government Policy:-

Government provides subsidy and other benefit to the company.

VII. Availability of Labour:-


Company located at GIDC area where labour can be easily

available and company has their own bus facility who handles man

power to traveling.

Factor influencing layout:-

I. Material:-

Yarn

II. Product:-

Sarees and Dress material

III. Workers:-

Work in three shifts

1 worker handles 8 machines

IV. Machinery:-

Name of Machine No. of Machine

Sizing 6

Warping 9


Beaming 5

Leasing 8

Water-jet loom 240

Jet dying -

00 Machine -

Printing Machine 7000

Folding Machine -

Packing Machine -

Cutting Machine -

V. Types of Machinery:-

Continuous Processing industry.

VI. Location:-

Kadodara, Jolva, Sahara Darwaja

Manufacturing System:-

The company used production factor as input like man, machine,

capital etc. and get out put of cloths.

Workers work in three shifts i.e. each shifts timing are 8 hours and

during these 30 minutes break given to their employees.


3.3Types of Products and their Specification:-

Types of product:-- Sarees- Dress-Materials- SKD (Skirt, Kurt and Dupptta)- Suiting & Shirting etc.

3.4 Types of Raw-Material Used:-

Raw materials for yarn are as follows:- DMT+MEDENOL (chemical)

Raw materials for gray cloths are as follows:-

Yarn

Raw material for Sarees and dress material are as follows:-

Gray cloths

Raw material for production of Sarees and dress materials are produce in company itself at Jolva Plant and remaining part of raw-material can be purchase from out side.

Company’s policy for procurement of raw-material is three ways like:-

i. Own processing,ii. Outside processing (OP) andiii. Totally Out Side processing (OSP)


Percentages of procurement of Raw-material are as follows:-

OWN 80%OP 10%OSP 10%

Raw-Material like PFY (Polyester Filament Yarn) purchase from out side which is as follows:-

Reliance Industries Ltd.

Bombay Dying and also import some Raw-Material used in

production.

3.5 Brief Explanation of Production Process and its flow

Chart:-

Draw Warping Machine:-

POY


In Draw Warping Machine used for Stretching Polyester Filament

Yarn. In this machine the following procedure can be done.

First of all 1500 p.p. to 1200 p.p. size creel can be build up or

beam of that size can be prepared. Then after draw joms machine stretch

polyester filament yarn. In this machine two procedures can be done i.e.

first 130’temperature heating the yarn then 80 to 90’temperature cold

the yarn. So that POY can be converted into FOY (FULLY

ORIENTED YARN). Then after intermingle device binding or

beaming the FOY. Then after this beam send into another process.

CRIL SECTION 1500 P.P. 1200 P.P.

DRAW JOMS TO STRETCH YARN

130 TEMP.HEAT + 80 TO 95 TEAM. COLD

FOY (FULLY ORIENTED YARN)

INTERMINGLE DEVICE TO BINDING


3.6 Explanation or to study the details of any single

equipment /Machine Operator and Comment on Related Micro

Motion Aspects:-

I. Draw Warping Machine:-

-Fully German Technology

-Speed 1000

-Actual Speed 900

-To Count

-Yarn in meters automatically

-Diameter

-Width

-Total Meter

-Speed of Machine

Total no. of machine in the company is 9 & all machine made in

Germany.


II. Rolling Machine or Beaming Machine:-

-Speed of machine

-Actual 650

-Rated 650

-Warping Length in meter

-Windings

-Circumferences

Stopping condition

-Inter Stretching

-Outlet Stretching

-Massage

III. Water-Jet Looms:-

-Total no of machine 240

-70/80 meter per day production per machine

-Made in Germany

-1 worker handles or operators

After completion of these procedures then after caning and looms

and finally grey fabric prepared. One officer also prepared one grey


fabric checking report. This report can be check by HOD of that

department and send for further processing.

After this process Grey Fabric can be send in checking department

for checking the mistake and then after send it to mending department

where all mistake found by checking officer can be clear or rectify.

Then send it for further processing.

In Mending Department grade can be given as follows:-

Grade can be given as per 1 defect in 100 meter.

Centimeter Point

1 to 3 1

3 to 6 2

6 to 9 3

9 and more 4

Point Grade

0 to 4 A

5 to 10 B

11 to 15 B1


16 and more C

3.7 Types of Material Handling Equipment Used:-

- Pipe lines for liquid material

- Truck for large beam

- Lorry

- Conveyer belt

- Trolley

- Patching machine

- Jumbo Lorries

- Pallets

- Batching Machine

- Electric Hoist for Beam passing

- Standard Double-Deck Wood

- Skid Boxes

- Fork lift Truck

- Plastic Boxes

3.8 Inventory Management for Raw-Material & Finishing

Material:-


Generally in the company all the procedures for inventory

management and all other control activity in company can be done

automatically.

Company also does ABC Analysis and EOQ Analysis.

3.9 Co-ordination Between:-

Stores and Production

Purchase and Production

Production and Dispatch

Production and Engineering

Stores and Production:-

Central stores and purchase department and production department. If

any stores item want in production department from stores and purchase

department then HOD of production department write one memo to

store and purchase department. This department received the memo and

sends for checking sign of the memo and if not any mistake then sends


goods as per requirements and prepared bills for that order and send it to

Account department.

In short:-

Bills Prepared for Required Items

Bills Sign by Respective HOD

Send to Stores & Purchase Dept.

Send for Checking of Sign of HOD by Stores & Purchase Dept.

If no mistake found then send Items as per order by Stores & Purchase Dept.


Production and Dispatch:-

Sizing Department:-Input----Flat Yarn

SizingBeamingLeasingWeaving Dept. -------Output

Name of Machine No. of MachineSizing 8Warping 3

Send Bills to Account Dept. by Stores & Purchase Dept.

Order Received From Customer

As Per Order Prepared Item

Prepared Item Send to Marketing Dept.


Beaming 3Leasing 8

3.10 Quality Assurance Measurement:-

Grade can be given as per 1 defect in 100 meter.

Centimeter Point1 to 3 13 to 6 26 to 9 39 and more 4

Point Grade0 to 4 A5 to 10 B11 to 15 B116 and more C

Grade A for high qualityGrade B & B1 for medium qualityGrade C for law quality.


Introduction

Department Structure

General Information

Product Decision

Sales Network & Competitors

Pricing

Distribution Channel

Advertising

Marketing Research


Marketing Segmentation

Global Marketing

Quality Control

4.1 Introduction:-

Market :-

The common usage of market means a place where goods are

bought or sold. In its strict meaning market need not necessarily mean a

place of exchange.

Marketing :-

Marketing is concerned with selling but now a day the concept has

enlarged its meaning. We know that a product is provided with the aim

of sale. The aim producer totally depends on marketing. Without

marketing no unit can run. It covers marketing research, new product

development and so many other important functions.

“Marketing is the process of discovering and translating consumer

needs and wants into product and service specifications, creating

demand for these products and services and then in turn expanding this

demand.”


In case of Garden Silk Mill Pvt. Ltd., marketing is done by head

office in Surat. Marketing area, covered by Garden Silk Mill Pvt. Ltd.,

is in a state in India and also outside India.

4.2 Department Structure:-

C.E.O

Manager

General Staff

4.3 General Information:-

The Marketing Concept : -


FOCUS MEANS

OBJECTIVES

Locations for Marketing : -

Garden Silk Mills Pvt. Ltd. is having its marketing offices at

different places like in Surat, Mumbai, Delhi, and Ahmadabad.

Function of Marketing : -

1. Contractual: -

The searching of buyers & sellers.

2. Merchandising: -

Products to fill in customer

needs something

Integrated marketing mix

Profits through

customer satisfaction


Matching the products to customers needs & desires (the

market requirement).

3. Pricing: -

Determining the optimum price.

4. Promotion: -

Persuading the buyers to favors the firm & its products.

5. Physical distribution: -

The transport, warehousing & inventory control.

Responsibility : -

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 to increase the volume of sales.

They are responsible from inquiry of goods and delivery of product to

their customer.

They are responsible for the proportion of discount policy.

They are responsible for checking the account of 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.

4.4 Product Decision:-


Product Concept: -

The product is the most tangible and important and single

component of the marketing programmer. Without a product, there is

nothing to distribute, nothing to promote, nothing to price.

To the marketer products are building blocks of a marketing plan.

Good products are key to market success. Product is the vehicle by

which a company provides consumer satisfaction. It is the engine that

pulls the rest of the marketing programmer. Products fill in the needs of

society. They represent a bundle of expectations to consumers and

society.

A product is anything that can be offered to a market for attention,

acquisition, use or consumption that might satisfy a want or need.

Classification of Products:-

The products may be classified into the following categories:

Industrial Products: -

Industrial goods are those, which are used for further production of

goods or services, and include capital goods, raw materials, component

parts etc. These are used as input in producing other products.

2. Consumer Products: -


Consumer goods are meant for final consumption by consumers

and not for sale. Garden Silk Mills Pvt. Ltd. is producing industrial

goods, which indirectly affects the consumers.

Product Mix :-

“Product 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 Silk Mills Pvt. Ltd.


WIDTH

Draw

texturisin

g machine

Two for

one

Knittin

g

machin

e

Rappie

r

weavin

g

machin

e

Precisi

on

cone

winder

Weavin

g

machine

L

E

N

G

T

H

HDS-

1500AT

SDS-

700CR

HDS-EX2

HDS-VX2

HDS-TT

HDS-CX

DT-

3000

DT-

90EN

DT75R

CAMB

ER

RAPTE

CH-

SPRIN

T

RPV- Jacquard

PK-1200

Dobby

PKD-

200

1. Width: -

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. Consistency: -

The consistency of a product refers to how closely relate the

various product lines. All the machines are texturising machines in

Garden Silk Mills Pvt. Ltd.

Strategies for New Product Development : -

In a growing economy like in India, to be successful in the field of

marketing, new consumer needs must be discovered and satisfied. A

new product must be suitable to meet the changing needs of customer.

The life of the firm is closely related to the development of new

products through technological innovation new products means new

profits.


For new product development, Garden Silk Mills Pvt. Ltd. is uses

following strategies:

1. First they contact their existing customers to introduce their new

machines & also request them to recognize their products to other

interested buyers.

2. They arrange seminars in which they show the features, benefits,

advantages of their products & also explain them how it affects their

profit, productivity etc.

3. 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.

Product Life Cycle : -

As every being has life, a product has its life. Industrial goods may

have a longer life than consumer goods. When 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 PLC.

As we know that Garden Silk Mills Pvt. Ltd. produces industrial

goods & these goods are used for producing consumer goods. Industrial

goods are long term purchasing decision.

4.5 Sales Network & Competitors:-

Sales Network : -

Bombay, Delhi, Ahmadabad and Ludhiana and Surat are the

different branch offices of the Garden Silk Mills Pvt. Ltd. The company

has a well-developed sales network with these above branch offices.

After establishing itself in India, the company has gone forward towards

export market and has secured orders against global competition. The

Product Have Been Exported To Germany, U.K., Singapore, Malaysia,

Africa, Nepal, Indonesia, Bangladesh, Sri Lanka, Iran, Egypt, Syria,


Turkey, China Etc. In 1987, The Export turnover was 0.3 million and it

increase to Rs. 300 million in 2000. The company has recently executed

successfully an order of 14 high speed Draw Texturising Machines at

one of the popular company in CHINA.

Details of competitors :-

Today, competition is not only rife but growing more intense every

year. The markets have become so competitive, understanding

customers are not longer enough. Companies must start paying keen

attention to their competitors. Successful companies design and operate

systems for gathering continuous intelligence about competitors.

The major competitors of Garden Silk Mills Pvt. Ltd. are as under

1. Barmay (Germany)

2. Bata (Japan)

3. Alidhra

4. Musata


The main objective of each company is to increase its market value.

4.6 Pricing:-

Price may be defined as the exchange of the goods & services in

terms of money. What you pay is the price for what you get.


Pricing decisions have strategic importance in any enterprise.

Pricing governs the very feasibility of any marketing programmed

because it is the only element in a marketing mix accounting for

demand & sales revenue.

Pricing strategy : -

Garden Silk Mill Pvt. Ltduses the following pricing strategies for

their different product:

1. Penetration pricing: -

A low price is designed in the initial stage with a view to capture

greater market share. When the large number of competitors are existing

in the market at that time Garden uses this strategy for pricing.

2. Skimming pricing: -

This pricing strategy is characterized by high initial price of the

product at the time of introduction of the product in the market.

Manufacturers aim at the shortest period, where market conditions are


also favorable. The price is brought down when competitors enter in to

the market field.

4.7Distribution Channel :-

In the field of marketing channel of distribution indicate routes or

pathways through which goods & services flow, or move from products

to consumers. Distribution is a function to distribute or sub-divide the

producer’s goods on a geographical basis to various specific markets.

There are mainly two types of channel of distribution:

Direct : -

In the direct or short channel, the company sells the products to

consumers directly. There are no intermediaries.

Indirect : -

Indirect channel or long channel, the company uses intermediaries

to channelize its product to the consumers.


Garden Silk Mills Pvt. Ltd. is mainly concerned with the

production of industrial goods, which need not long distribution Garden

sells its products direct to customers.

It means that they are not having any intermediaries for selling

their product. Garden has no branch office for marketing. They deal

with the customers from the Head Office only.

4.8 Advertising:-

An obvious fact that advertising is a form of mass communication.

It is paid for by a sponsor (seller) who wants to communicate about his

product or service to his customers. The advertiser or sponsor wants to

persuade and induce the readers, viewers or listeners to take some action

viz. to buy the advertised product so that the advertiser can have

profitable sales.

Producers(Garden Silk Mill

Pvt. Ltd.)

Industrial Buyer(Textile

Industries)


“Advertising is a any paid form of non-personal presentation &

promotion of idea, goods or services by an identified sponsors.”

Budget For Advertisement : -

Every organization decides their amount or budget for advertising

in advance. But it is not possible in every situation. Some times

company may not be in a position to decide their budget for advertising

in advance because of certain reasons.

Previously Garden Silk Mills Pvt. Ltd. had fixed budget for

advertisement. In the year 1993-94, the company was provided

8,69,000 as expenditure of advertisement, while in the year of 1994-95,

the company was provided 14,52,000 as expenditure of advertising. But

at present how much rupees of how much percentage of total turnovers

spent for advertisement is not fixed.

Media For Advertisement : -

Media is a means through which advertisement passes to

consumers & by which consumer comes to know about product & its

features.

Garden Silk Mills Pvt. Ltd. uses different media for advertisement

like newspaper, textile magazines, seminars, demonstration, Internet &

other business magazines.


Thus, Garden Silk Mills Pvt. Ltd. does not more emphasis on

advertising because they are producing industrial goods & it is a long

term purchasing decision & there is not any regular customer for

industrial goods.

4.9 Marketing Research:-

Marketing research is the systematic, design, collection, analysis &

reporting of data & findings relevant to a specific marketing situation

facing the company.

In the current competitive situation, it is necessary for every

organization to research or examine their market situation at regular

interval of time. Therefore company researches their prevailing market

situation.

Garden Silk Mills Pvt. Ltd. has also done this activity and for these

purpose it has a separate research & development department at

Borsara-Kim. It examines the needs, wants & preferences of the

consumers. It prepares the report on the consumer needs what they

want? What their complaints are against the product? Etc.


4.10 Market Segmentation:-

Market segmentation is an effort to increase a company’s precision

marketing. The starting point of any segmentation discussion is mass

marketing.

“Market segmentation consists of taking the total heterogeneous

market for a product & dividing it in to several sub-markets or

segments, each of which tends to be homogeneous in full significant

aspects.”

Business market can be segmented with some variables employed

in consumer market segmentation, such as geography, benefits, sought

& usage rate. Yet business marketer can also use several other variables.

Buyer’s behavior is never the same & the market could be segmented on the basis of buyer’s characteristics. The producer must understand the behavior of his customers & adopt different strategies according to the needs & characteristics of his customers, so that physical & human resources of the enterprise may be fully exploited & marketing objectives may be fully meet. There are three types of marketing strategies viz.


1. Undifferentiated or market aggregation strategy.

2. Differentiated marketing strategy.

3. Concentrated marketing strategy.

There are certain criteria for market segmentation. If industrial market is divided by industry, the company size & location the criteria is called demographic. If the industrial market is divided according to technology, user or non-user status & customer capacities, the criteria are called as operating variables. The other criteria are purchasing approaches, situational factors & personal characteristics etc.

Garden Silk Mills Pvt. Ltd. produces textile machines & its tools

etc. This product is purchased by any company or firm, which produces

cloths or Sarees. There are no certain basic criteria dividing the market.

Garden Pvt. Ltd. had fixed policies & dealing with textile industries

only.


4.11 Global Marketing:-

Companies 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.

A global industry is an industry in which the strategic positions of

competitors in major geographic or national markets are fundamentally

affected by their overall global position. It operates in more than one

country & captures R&D, production, logistical, marketing & financial

advantages in its costs & reputation that are not available to purely

domestic competitors.

Garden Silk Mills Pvt. Ltd. as a global firm deals with export and

import patterns among the various countries of the world. Value of


imports on C.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.

4.12 Quality Control:-

In this modern world consumers are also very keen therefore they

choose the best quality product. Even Garden Silk Mills Pvt. Ltd. has

monopoly on texturising machine but company does not decrease the

quality of the product.

Garden Silk 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.


Introduction

Wage & Salary

Personnel Management Overview

Personnel Policy

Recruitment & Selection

Educational Criteria for Selection

Facilities at the Plant

Incentives & Motivation System


Quality of Successful Manager

Training Process

5.1 Introduction:-

The institute of personnel management London, U.K., defines

personnel management has that part of management concerned with

people at work and with their relationship within an organization. Its

aim is to bring together and developed into an effective organization of

man and woman who make up an enterprise and having regard for the

well being of individual and of working groups to enable them to make

their contribution to its success.

Human resources have very much important in every organization.

Human resources are the back bone of industry. The policy of the

Garden Silk Mill Pvt. Ltdsuggest as “To get customer satisfaction by

providing a very high standard of products by including every

employee”.


5.2 Wage & Salary:-

The company given minimum daily salary is Rs.63.10 for unskilled

labour but company gives monthly salary to the labour accordingly the

government rules. The monthly salary round about approximately


Rs.1600 to 2000 is given to the labors according to the dearness

allowance to the workers after deduction of salary.

The company gives basic salary base on bonus, provident fund and

employees’ share of income after the dear allowance included medical

book, periodical and conveyance allowance of every month. The

company also takes attendance of every worker and gives them attendee

of every worker and for making the worker absence and presence

company also provide the provident fund from the employee salary it is

12% for the unforeseeable requirement up to 30% for employees

granted credit of their contribution. The company also provides the

leaves to the employee. There is at least one also off days on festivals

there are 39 days off during the year. The company also paid for the off

days here the company registered leave of the worker and rest of leaves

carry forward to the next year.

The company also provides the loan facility to the necessary

employee or worker who wants to take the loan. The company also

provides the labour welfare fund it is only 50 paisa per each employee

are deposited twice in a year in June & December. The employees also

provide the pension to all their employees it is 12% of his salary is

transferred to A\C no. is known as pension.


The company gives medical expenses to the employees @8.33 of

total one-month salary provided in March & December. The company

also secures life insurance for the workers.

5.3 Personnel Management Overview:-

The company management system is well established in the

personnel management system. The relationship between management

and employee are perfectly maintained in personnel management. There

are 5000 workers in the company out of 3000 are at main plants and rest

of the other plants.

5.4 Personnel Policy:-

The Personnel policy of company included the job securities to the

employees give the right work to the right employee and also give the

training to the employees or their work to get work in full fledge also


provide the every well work environment to the worker to shoe his

ability in his way.

5.5 Recruitment & Selection Process:-

Recruitment:

It is the process of finding and attracting capable applicants for

employment. The process beings when new recruits are sought and end

when their applicants are submitted.

Selection:

“It is the process of differentiating between applicants with a

greater likelihood of success in a job”.

Process of Recruitment & Selection :-


In Garden Silk Mill Pvt. Ltd., first of all decided how many

number of personnel are to be contacted and what type of

personnel to be contacted.

Then after they decide area from where they will get their

employee. They looks employees at internal recruitment, present

employees, employees referral, professional association,

advertisement, campus recruitment, walk ins – write ins – talk ins,

Radio & television etc.

They start finding the employees before two months ago from

their required time.

Then after screen out employee and decides whether they are

applicable to do the job or not.

In this step, preliminary interview is to be taken, in this

interview general question is asked and check the capability of the

applicant.

Employment interview is to be taken and the applicant who

passed all above step is selected


Job is offered to selected applicant through letter of

appointment.

5.6 Educational Criteria for Selection:-

For Manager & Supervisor:-

Managers possessing textile or production degree are employed to

respective jobs in beginning the salary is Rs.4500/-

For Temporary Staff:-

In the temporary Staff level science gradates or diploma in

engineering filed are selected their salary is Rs.3500/- at the beginning.

For Labour:-


There is no need to any educational criteria for the labour job in

this job has experience and skill for the work their wages is given to

them according to their daily wage system.

5.7 Facilitate at the Plant:-

A).Security:-

The company is very strict in the security so there is one security

man at the main gate. He checks the every one who is come in the

company and no car allowed in the company without permission of gate

security all the employees are given gate pass and also bus pass. Who

has gate is only enter and go out the company.

B).Canteen:-

There is a well developed canteen in the compound of company.

The canteen is made for the employees and it’s providing the everything

at every reasonable price in the canteen. There is a coupon required for

eat anything in the canteen.

C) Transport:-


The Garden Silk Mills Pvt. Ltd. have very good transport facility for the readymade garments and raw-material required by the company and it’s provided also transport facility for their employees. First of all the employees need to reach at Sahara gate and then company’s buses drop the employees at different plant whenever they wants to go at 8’clock in the morning the other company’s vehicle also goes to the plant at 10:00pm. This facility is only for higher cadre employees .When any employee has half leave and he wants to come they can come back by the bus at 3o’clock. It is the first shift and buses and other vehicle are ready for them. There are also for come back at 5o’clock at the end of the second shift.

D) First Aid Medical:-

The Company has its own dispensary to provide a first aid service to the employees when the employees is injured he is treatment and when workers fall ill in the company he is treatment properly. If any worker faced accident in the plant he is taken to the nearest hospital by the cost of the company and all treatment expenses is given by the company. The company also provides medical facility for the worker’s family. If any worker’s family member falls ill the company gives him money and hospital facility.

Promotion :-

Promotion is done to fill up the vacancy when the company fills sometimes some post. They have two options for fill up the job first is


by recruit by external sources or second is by promoting the old employees .The Company mostly preferred to promote the employees for the job.

Performance Appraisal :-

The company follows senior recommended appraisal by their senior and they are increment as per recoded by senior system and not only strutted performance appraisal system.

5.8 Incentives & Motivation System:-

Incentives are payment plans which provide encouragement

by extra payment over and above regular time rated remuneration for

the extra performance. To get desired or targeted result, organization

can provide extra remuneration for better performance of employees. In

other words, an incentive scheme is a plan or programmers to motive

individuals or group performance.


Garden Silk Mills Pvt. Ltd. and other company also use certain

incentives to motivate its employees. Motivation means to force a

person and involve him to complete the work in right time and place

with help by providing a basic need or special need to worker. Specially

Maslow’s need hierarchy used to motivate employees such as basic

need, special need, safety need, recognize, identify, self realization.

Extra salary is one such type of incentive which is given to those

employees who show sincerity and regularity throughout the year in

their work. Salary is the main factor to motivate employees. Safety need

is also used to complete the work.

1).Personality:-

There are certain qualities of good personality such as out look,

communication, nature, presentation, good behavior, positive attitude.

2).Look:-

The person in a formal dress.

In proper hair style.

Clean shoes.

In case of mail, plain & light shirt and dark pent.

Other factors that adds flavors to look.


3).Communication:-

Communication is a mature process; we find communication not

only between human being but also between in animal. Communication

means express words and ideas of the one person to other in a way that

the person can understood clearly and easily. This can be done in three

ways.

4).Verbal:-

Here selection of correct word is most essential factor because

verbal communication means express ideas in word by speaking.

5).Written:-

Written communication means one can present his view form of

written point and points clearly understood by other person. One can

add sketches/pictures with text to support own view and create a clear

picture of the idea.

6).Gesture:-

Gesture communication means one can express idea through body

language. Body language should be perfect and well balanced.


To make communication be perfect – by whom, what, why, when,

where & how added while receiving and giving any instruction. It

should be maintained to make communication perfect and confusion

less and mis-understanding less.

7).Nature:-Nature of a person should a person should be balanced not too rigid

or to flexible so as to tackle situation smoothly.

8).Good behavior:-Behaviour of one person doesn’t put others in trouble or should

hurt others by means of word or action.

9).Positive attitude & thinking:-

Positive attitude and thinking of a person will add up to

personality.

5.9 Quality of a Successful Manager:-

The manager has to express the ideas in such way that it is clear to

other and to grasp other’s idea clearly.

Motivation is an effective tool for getting critical tasks completed

within specified period or in desired manner to achieve certain goal.


Manager has to take correct decision i.e. what, when, where, why,

how a specific job is done based on information and knowledge.

The manager has to synchronized different activities being carried out

by different individuals/group/ departments. This synchronizing

technique is called co-ordination.

The manager has to develop both his/her self and the subordinates, so

that one can take more or extra responsibilities by empowering own

subordinates.

If a manager performs above functions i.e. communication,

motivation, decision making, co-ordination, development etc. perfectly

then he/she can be a successful manager even though he/she may not

have other skills.


5.10 Training Process:-

Training is a short term process utilizing a systematic and

organized procedure by which non-managerial personnel learn technical

knowledge and skill.

Training helps the persons to improve their knowledge and skill.

This is self development process. Training based on learns & teach.

Training puts its meaning powerful when it receives a positive and

better feedback from trainees. The complete system of a particular

organization or in the department and its outcome depends upon the

Input Process Output

Input can be raw-material in any form. Input can be a simple data

which needs processing and finally get output. I would like to take

example of cheque.

Input: A/c No., Name, Amount, Sign

Process: Cross verification in bank

Output: Receives money from the bank.


a) Need of Training :-

To improve knowledge & skill.

To develop attitude & behaviour.

Reduced cost, accident and mistake.

Increase efficiency

To increase productivity

Imparting information on new technology and methodology.

To maintain industrial relation.

b) Infrastructure for Training Department :-

Whatever the things and materials, facility required for imparting

training.

Training room/Seminar room.

Board

Chair

OHP (Over Head Project)

VCR, CD Player

Television


Audio deck karaoke facility.

Automatic slide projector

Computer with multimedia facility

Video projector demonstration for technical guidance.

Picture and feature for illustration


Swot Analysis

S. Strength

W. Weakness

O. Opportunities

T. Threats

Strength

The company must contact with other retail shops and advertise

product. The company also starts new production plant near the

residential area.

The company must have monopoly in the Indian markets. The

company must have very highly talented staff in every department.

They must have good credit in the markets.

Weakness


The main weakness of the company is the cost of the productivity

is very high. There is also very unnecessary are staff in production

department and also in finance department.

The company has very poor marketing in India. The company does

not contact with other retail shops.

Opportunities

The high demand of growth of PFY &PFY based fabric in the past

and world trends suggest that it is expected to continue its high growth.

The company hopes to benefit from this growth especial since it

has a product profile that is highly differentiate. The company enjoys a

strong brand image with customers and its proximity to Surat a key

market should provide an advantage.

Threats

Should raw material prices to continue to rise in the industry could

slow down. New expansion by others in the industry could have an

impact on margins.


Due to cyclical business trends, profitability will be linked to world

wide demand condition for PFY. A substantial rise in the value of the

roué will reduce the cost of imports and increase competition.

gardan silk main

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