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 G. Date:
Mangukiya Bharat
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.
1 2 3 4 5 6
Particulars
COMPANY DETAILS FINANCIAL DEPARTMENT PRODUCTION DEPARTMENT MARKETING DEPARTMENT PERSONNEL DEPARTMENT SWOT ANALYSIS
Page No.
5 14 46 61 78 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 Mills 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. close market monitoring, The extension of the policy of vertical improving communication between integration into the retailing sector had advantages of uniform pricing, 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 companys 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 Mrs.Shilpa P.Shah Chairman & M.D. Executive Director
Mr.S.J. Bhesania Mr.Harshad F. Shah Mr.Sanjay S. Shah Mr.Alok P. Shah Mr.Rajen P. Shah Mr.J.P.shah Mr.Yatish Parekh
Executive Director Executive Director Executive Director Executive Director
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) ii) Garden Mills Compound, Sahara Gate, Surat 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:-
Category Promoters Mutual funds & UTIi Bank Financial Ins. & Insurance Co. FIIs Private Bodies Corporate NRIs/OCBs Indian Public GDR Others:Trust Clearing Members Total
No. of shares hold 20596819 15050 1556486 62914 1443422 2571140 11359530 614525 500 70174 382902560
Holding strength 53.79 0.04 4.06 0.17 3.77 6.72 29.67 1.60 0.00 0.18 100.00
Chairman & Managing Director
Financ e Directo r
General Manager Marketing
Import & Export Director
Producti on Director
Head of the Department Staff
1.6 Organization Structure:-
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. 2. 3. Recorded facts Generally accepted accounting principles 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 companys 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 dont 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 dont 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 cant 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 noncontrollable. 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 30th June, 2005-2006
(Rs. In Lacs)
Particulars Income Sales & Job Charges Less : Excise Duty On Sales Income From Financial Operation Other Income Total Expenditure Consumption of RM (Increase)/Decrease In Stock Purchases Excise Duty Mfg. & Other Expenses Total Profit before Financial Charges, Dep. &Tax Less: Financial Charges (Net) Profit before Dep. & Tax Less: Depreciation Profit before Tax Less :Provision for Current Tax Wealth Tax Deferred Tax Fringe Benefit Tax Profit after Tax Add: Balance B/F Balance for Appropriation Appropriation Proposed Dividend Tax on Proposed Dividend Transfer to General Reserve Balance Carried to Balance Sheet Total
2005-06 107923.89 12437.94 95485.95 64.00 469.06 96019.01
2004-05 75429.66 11905.85 63523.81 141.36 466.74 64131.91
62771.75 39388.18 1219.76 1475.99 1299.29 4384.02 160.51 283.25 20933.27 12947.94 83945.06 57912.88 12073.95 4020.11 8053.84 4866.13 3187.71 65.00 10.00 842.26 60.00 2210.45 2882.91 5093.36 574.36 80.56 120.00 4318.44 5093.36 6219.03 1625.72 4593.31 3617.11 976.20 103.60 0.00 21.36 15.00 878.96 2708.87 3587.83 574.36 80.56 50.00 2882.91 3587.83
Comparative Balance Sheet as on 30th June, 2005 & 2006

(Rs. In Lacs)
Particulars SOURCES OF FUND Shareholders Fund Share Capital Reserves & Surplus Loan Funds Secured Loan Unsecured Loan Deferred Tax Liability Total APPLICATION OF FUND 1. Fixed Assets Gross Block Less: Depreciation Net Block Capital WIP 2. Investment 3. Current Assets, Loans & Adv. Inventories Sundry Debtors Cash & Bank Balance Loan & Advances Less: Current Liabilities Provision Net Current Assets 4. Miscellaneous Expenditure Total
2005-06 3829.06 30414.31 34243.37 49321.99 14585.87 63907.86 5212.72 103363.95 106157.86 33648.12 72509.74 2496.08 75005.82 7286.35 9708.08 4844.93 2844.30 10329.64 27726.65 5426.15 1398.75 6824.90 20902.05 169.73 103363.95
2004-05 3829.06 28858.78 32687.84 48496.87 10672.30 59169.17 4370.46 96227.47 71929.63 28865.62 43064.01 28791.75 71855.76 7473.02 6585.39 2963.00 3136.44 9914.39 22599.22 4627.25 1302.26 5929.51 16669.71 228.98 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 30th

Particulars Particulars SOURCES OF FUND Income 1. Shareholder Fund Sales & Job Charges Share Capital Less : Excise& Surplus Reserve Duty Secured Loan Income From Financial Unsecured Loan Operation Total Other Incomeof Fund Application Total 1. Fixed Assets Expenditure 2. Investment Consumption of RM 3. Current Assets (Increase)/Decrease In Stock Less: Current Liabilities Purchases Tax Liability 4. Deferred Mfg. & Other Expenses 5. Misleading Profit before Financial Total Charges, Depreciation & Tax Total 2005-06(%) 2004-05(%) 2005-06(%) 2004-05(%) 103.21 8.77 4.48 69.24 98.73 21.79 0.20 0.82 100.00 0.45 100.00 56.18 13.20 55.90 37.78 0.64 7.28 8.58 0.00 24.47 0.12 100.00 10.41 100.00 101.60 8.59 4.00 59.78 97.61 20.94 10.69 0.76 100.00 1.63 100.00 63.57 9.13 53.11 44.13 (0.96) 9.18 6.96 (7.87) 25.25 0.22 100.00 15.63 100.00
June, 2005-2006
Common size Balance Sheet as on 30th June, 20052006
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 Compnays 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
1. Gross Profit Ratio 2. Net Profit Ratio 3. Operating Ratio 4. Stock Turnover Ratio 1. Current Ratio 2. Liquid Ratio 3. Debt Equity Ratio 4. Propritory Ratio 5. Capital Gearing 1. Return on Investment Ratio Ratio 2. Return on Propritory Fund Ratio 3. Net Profit to Total Assets Ratio 4. Creditors Turn Over
Profit & Loss A/c Ratio
Classification of Ratio:-
Balance Sheet Ratio
Inter-Statement Ratio
5. 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 Profit Gross Profit Ratio = ------------------- * 100 Net Sales Years 200102 200203 200304 200405 200506 Gross profit (a) 5727.85 3508.31 3351.06 1 4281.98 5648.76 43459.79 46167.17 9.85 14.40 Net sales (b) 56871.04 44044.16 41347.0 Ratio (%) (a/b) 10.07 7.97 8.10
Gross Profit Ratio 16 14 12 P 10 e 8 r . 6 4 2 0 2001-02 2002-03 2003-04 Year 2004-05 2005-06 10.07 7.97 8.1 9.85 14.4
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 2.83 2002-03 817.40 46144.16 1.77 2003-04 598.50 39947.01 1.50 2004-05 2123.84 44359.79 4.79 2005-06 2949.51 45467.17 6.49
Net Profit Ratio
P e r .
7 6 5 4 3 2 1 0
6.49 4.79 2.83 1.77 1.5
2001-02
2002-03
2003-04
Year
2004-05
2005-06
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 Sales Operating Ratio = ------------------- * 100 Sales Revenue
Years 200102 200203 200304 200405 200506
Cost of sales(a) 53698.73 41756.32 33218.51 36249.68 34277.06
Sales revenue Ratio (%) (a/b) (b) 59071.04 45978.16 39347.01 43459.79 46167.17 90.91 90.82 84.42 83.41 74.25
Garden Silk Mill Pvt. Ltd. Operating Ratio 100 P e r . 80 60 40 20 0 2001-02 2002-03 2003-04 Year 2004-05 2005-06 90.91 90.82 84.42 83.41 74.25
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 sold during a given period and the average of the costs of openaing and closing stocks. Cost of Goods Sold Stock Turnover Ratio = -------------------------Average Inventory
Years 200102 200203 200304 200405 200506
Cost of Goods Sold (a) 54311.84 41287.08 37128.80 41525.54 36506.16
Avg. Inventory (b) 3431.33 3486.77 3107.66 2491.48 2673.68
Ratio (a/b) 15.83 11.84 11.95 16.67 13.65
Stock Turnover Ratio
20 T i 15 m 10 e s 5 . 0
15.83 11.84 11.95
16.67 13.65
2001-02
2002-03
2003-04 Year
2004-05
2005-06
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 200102 200203 200304 200405 200506
Current Assets (a) 15872.35 15316.44 13526.96 10506.54 13836.64
Current Liabilities (b) 3924.37 3702.93 4036.77 3198.01 4012.50
Ratio (a/b) 4.04 4.14 3.35 3.29 3.45

Current Ratio
5
T i m e s
4 3 2 1 0
4.04
4.14 3.35 3.29 3.45
2001-02
2002-03
2003-04
Year
2004-05
2005-06
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 Assets Liquidity Ratio = -----------------------Curent Liabilities
Years 200102 200203 200304 200405 200506
Liquidity Ratio(a) 8159.57 7455.46 7863.99 4673.20 7881.12
Current Liabilities(b) 3829.37 3630.93 4008.77 3178.01 4093.50
Ratio(a/b) 2.13 2.05 1.96 1.47 1.93

Liquidity Ratio
2.5 2 T i 1.5 m 1 e s 0.5 0
2.13
2.05
1.96 1.47
1.93
2001-02
2002-03
2003-04 Year
2004-05
2005-06
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 outsiderss 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 200102 200203 200304 200405 200506
Long term debt(a) 4965.11 5238.49 7417.12 8304.24 8846.48
Shareholder fund(b) 34957.49 35284.66 32682.88 34053.66 30482.55
Ratio(a/b) 0.14 0.15 0.23 0.24 0.29
Garden Silk Mill Pvt. Ltd. Debt Equity Ratio 0.3

T 0.2 i m 0.15 e 0.1 s
0.29 0.23 0.14 0.15 0.24
0.25
0.05 0
2001-02
2002-03
2003-04 Year
2004-05
2005-06
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 shareholders 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 outsiders claim on the assets of the company. Shareholder Fund Propritory Ratio = -------------------------Total Assets
Years 200102 200203 200304 200405 200506
Shareholder fund(a) 34957.49 35284.66 32682.88 34053.66 30482.55
Total assets(b) 49330.42 50676.34 46590.91 46828.82 52184.81
Ratio(a/b) 0.71 0.70 0.70 0.73 0.58
Propritory Ratio
0.8
T 0.6 i m 0.4 e s 0.2
0.71
0.7
0.7
0.73 0.58
2001-02
2002-03
2003-04
Year
2004-05
2005-06
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 shareholders funds. Therefore this ratio establishes a meaningful relationship between the funds bearing fixed interest on the one hand, and the equity shareholders funds on the other. Fixed Interest Bearing Fund Capital Gearing Ratio = --------------------------------------Equity Share Capital
Years 200102 200203 200304 200405 200506
Fixed int. Fund (a) 4965.11 5238.49 7417.12 8304.24 8846.48
Equity capita (b) 3829.06 3829.06 3829.06 3829.06 3829.06
Ratio (a/b) 1.30 1.37 1.94 2.17 2.31
Capital Gearing Ratio
2.5
T i 1.5 m 1 e s
2.17 1.94 1.3 1.37
2.31
0.5
2001-02
2002-03
2003-04
Year
2004-05
2005-06
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 &interest(a) Capital employed(b) Ratio(a/b)
200102 200203 200304 200405 200506
1764.11 837.40 593.50 2061.84 2926.51
32635.36 33771.26 31193.36 31445.76 38007.83
5.41 2.48 1.90 6.56 7.70
Return On Investment Ratio
T i m e s
8 7 6 5 4 3 2 1 0
6.56 5.41
7.7
2.48
1.9
2001-02
2002-03
2003-04
Year
2004-05
2005-06
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 200102 200203 200304 200405 200506 Earning after tax (a) 1764.11 837.40 593.50 2061.84 2926.51 Shareholder fund (b) 34957.49 35284.66 32682.88 34053.66 30482.55 Ratio (a/b) 5.05 2.37 1.82 6.05 9.60
Return on Propritory Fund Ratio
10 T i m e s 8 6 4 2 0 2001-02 5.05 2.37 1.82 2003-04 Year 2004-05 6.05
9.6
2002-03
2005-06
Interpretation : The Return On Propritory Fund Ratio of last five years shows that sharholders gate 9.60 profit which is very good for companys 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
Net Profit to Total Assets Ratio 0.06 0.05

T 0.04 i m 0.03 e 0.02 s
0.06 0.04 0.04
0.02 0.01
0.01 0 2001-02 2002-03
2003-04
Year
2004-05
2005-06
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 200102 200203 200304 200405 200506 Creditors (a) 2412.40 2322.75 2631.58 1696.07 2575.36 Credit purchase (b) 36331.15 26805.11 19599.14 24158.08 23612.85 Ratio (a/b) 24.24 31.63 13.43 7.02 10.91
Creditors Turnover Ratio 35 30 T 25

i 20 m e 15 s 10
31.63 24.24 13.43 7.02 10.91
5 0 2001-02 2002-03 2003-04

Year
2004-05
2005-06
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
Debtors Turnover Ratio 60 50
T 40 i m 30 e 20 s
59.09 52.9 39.12 25.61 27.67
10 0 2001-02 2002-03 2003-04

Year
2004-05
2005-06
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 image. 9.60 profit which is very good for companys
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 Income Sales & Job Charges -Excise Duty
200102 58871.0 4 --------
200203 46044. 16
200304 40347. 01
200405 44459. 79 1930.0 4 352.57 195.16 43077. 48 24079. 43 273.70 3698.6 6 10543. 71 37506. 16 4481.9 8 906.26 3575.7 2 1511.3 8 2064.3 4 2.50 0.00 0.00
200506 45167. 17 1776.5 7 337.77 726.55 44454. 92 23611. 85 424.70 3093.5 6 11225. 45 38595. 50 6948.7 6 787.05 6161.7 1 2245.2 1 3916.5 3.00 986.01 0.98
-------- --------474.02 158.83 40979. 86 19543. 91 1658.3 3 3488.5 0 12798. 06 37528. 80 3451.0 6 1446.2 7 2004.7 9 1408.2 9 596.50 3.00 0.00 0.00
Income From 1511.00 119.62 Financial Operation Other Income 357.65 131.61 Total 60739.6 46295. 9 39 Expenditure Consumption of 36230.3 26335. RM 7 24 (Increase)/Decrease (152.23 (364.91 In Stock ) ) Purchases 1327.3 1826.74 9 Mfg.& Other 17406.9 15089. Expenses 4 36 Total 55311.8 42387. 4 08 Profit before Financial 3908.3 5427.85 Charges, Depre. 1 & Tax Less: Financial 1798.4 2304.96 Charges 1 Profit before Dep. 2109.9 3122.89 &Tax 0 Less: Depreciation 1263.4 1293.03 4 Net Profit before 1829.86 846.46 Tax Less: Provision for Tax 65.75 9.06 Current 0.00 0.00 Deferred 0.00 0.00 Earlier Years
Annexure A: Profit & Loss A/c
Annexure B: Balance Sheet
Particulars Sources of Fund 1. Shareholder Fund Share Capital Reserve & Surplus 2. Loan Funds Secured Loan Unsecured Loan
200102
200203
200304
200405
200506
3829.0 6 31128. 43 34957. 49 9118.0 3 1425.5 3 10543. 56 45501. 05
3829.0 6 31455. 80 35284. 86 8772.4 8 2988.0 7 11760. 55 47045. 41
3829.0 6 28853. 62 42682. 68
3829.0 6 30224. 60 34053. 66
3829.0 6 26653. 49 30482. 55 9336.4 8 4764.5 5 14101. 03 44583. 58
9645.3 9512.7 7 5 254.09 9899.4 6 42582. 14 84.40 9597.1 5 43650. 81
Total Application of Fund 1. Fixed Assets Gross Block Less: Depreciation Net Block Less: Lease Adjs. A/C Capital WIP
33242. 88 13473. 61 19769. 27 30.91
35272. 73 14580. 72 20692. 01 69.50
37178. 21 15891. 57 21286. 64 122.47 542.00 21706. 17 3400.2 8 5631.9 7
39640. 88 16594. 55 23046. 33 6.89 1482.7 9 24522. 23 5760.9 6 5428.3 4
43320. 78 18783. 39 24537. 39 6.89 3811.1 9 28341. 69 4070.3 0 5878.5 2
2. Investment 3. Current Assets Inventories
1654.0 1863.2 2 4 21392. 22485. 38 75 3261.2 3049.8 7 6 6912.7 8 7460.9 8
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
MANAGER
ASSISTANCE MANAGER
SUPERVISOR
All Activities in Production Department:-
All activities which are carried our in Production Department are as follows:Market (Customer) Marketing Department Production (Producer)
Sampling for Production
Sampling for Production Department
Approval to market via Marketing Department
Production Starts
Dispatch to Marketing Department
Dispatch to Customer
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 rawmaterial 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 companys plants are near to N.H.NO.8. So company benefited by this way. V. Suitability of Climate:Companys 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 Sizing Warping Beaming Leasing Water-jet loom Jet dying 00 Machine Printing Machine Folding Machine Packing Machine No. of Machine 6 9 5 8 240 7000 -
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. Companys policy for procurement of raw-material is three ways like:i. Own processing, ii. Outside processing (OP) and iii. Totally Out Side processing (OSP)
Percentages of procurement of Raw-material are as follows:OWN OP OSP 80% 10% 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
CRIL SECTION P.P. 1200 P.P. DRAW JOMS TO STRETCH YARN
1500
130 TEMP.HEAT + 80 TO 95 TEAM. COLD FOY (FULLY ORIENTED YARN) INTERMINGLE DEVICE TO BINDING
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 130temperature heating the yarn then 80 to 90temperature 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.
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 1 to 3 3 to 6 6 to 9 9 and more Point 0 to 4 5 to 10 11 to 15 16 and more Point 1 2 3 4 Grade A B B1 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.
Send Bills to Account Dept. by Stores & Purchase Dept.
Production and Dispatch:Order Received From Customer
As Per Order Prepared Item
Prepared Item Send to Marketing Dept.
Sizing Department:Input----Flat Yarn Sizing
Beaming Leasing Weaving Dept. -------Output Name of Machine Sizing Warping Beaming Leasing No. of Machine 8 3 3 8
3.10 Quality Assurance Measurement:Grade can be given as per 1 defect in 100 meter. Centimeter 1 to 3 3 to 6 6 to 9 9 and more Point 0 to 4 5 to 10 11 to 15 16 and more Point 1 2 3 4 Grade A B B1 C
Grade A for high quality Grade B & B1 for medium quality Grade 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 OBJECTIVES
Products to fill in customer needs something
MEANS
Integrated marketing mix
Profits through customer satisfaction
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: 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 companys product mix has certain width, length, depth and consistency. These concepts are illustrated for industrial products of Garden Silk Mills Pvt. Ltd. WIDTH Two for Knittin Rappie Precisi Weaving one g e r g machin e
L HDSE 1500AT SDSN G 700CR HDS-EX2 HDS-VX2 T HDS-TT HDS-CX H DT3000 DT90EN DT75R CAMB ER RAPTE RPV- CH- SPRIN T Jacquard PK-1200 Dobby PKD-200
Draw texturisin g machine
on winder
machine
machin weavin cone
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. Length: The length of the product refers to the total number of items in the mix. In the above table it is 15.
3.
2.
Depth: The depth of a product refers to how many variants are offered of
each product in the line. 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: -
4.
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.
4.7
Distribution 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 producers 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. Industrial Buyer Producers
(Garden Silk Mill Pvt. Ltd.) (Textile Industries)
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.
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 companys 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.
Buyers behavior is never the same & the market could be segmented on the basis of buyers 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 employees referral, professional association,
employee. They looks employees at internal recruitment, present employees, 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 its 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 its provided also transport facility for their employees. First of all the employees need to reach at Sahara gate and then companys buses drop the employees at different plant whenever they wants to go at 8clock in the morning the other companys 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 3oclock. It is the first shift and buses and other vehicle are ready for them. There are also for come back at 5oclock 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 workers family. If any workers 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 Maslows 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 doesnt 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 others 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.
Garden Silk Mill Pvt. Ltd. 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 rou will reduce the cost of imports and increase competition.

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Garden Silk Mill Pvt. Ltd.

GARDEN SILK MILLS PVT. LTD.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Place: Surat G. Date:

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Executive Director Executive Director Executive Director Executive Director

Company secretary:Kamlesh B. Vyas

Auditors:Messrs Natvarlal Vepari & Co. Charted Accountants,Surat.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

1.5 Categories of Shareholders:-

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Chairman & Managing Director

General Manager Marketing

Import & Export Director

Head of the Department Staff

1.6 Organization Structure:-

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

2.5 LIMITATION OF FINANCIAL STATEMENT:1.Fulfillment of Statutory Requirements :-

Garden Silk Mill Pvt. Ltd.

4.Emphasis on only quantitative information :-

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

2005-06 107923.89 12437.94 95485.95 64.00 469.06 96019.01

2004-05 75429.66 11905.85 63523.81 141.36 466.74 64131.91

Garden Silk Mill Pvt. Ltd.

Comparative Balance Sheet as on 30th June, 2005 & 2006

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

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

Common size Balance Sheet as on 30th June, 20052006

Garden Silk Mill Pvt. Ltd.

Importance of Ratio Analysis :1.Useful in fiancial position analysis :-

Garden Silk Mill Pvt. Ltd.

Garden Silk Mill Pvt. Ltd.

5.No common standards :-

Garden Silk Mill Pvt. Ltd.

Profit & Loss A/c Ratio

Balance Sheet Ratio

5. Debtor Turnover Ratio