Project On Ginza Industries Surat

Ginza Industries Ltd.

CH-1- INDUSTRY PROFILE.

Navnirman Institute Of Management.


1.1 INTRODUCTION:-

India’s Garment Industry is a well-organized enterprise and is

among the best in the world. It constitutes of designers, manufacturers,

exporters, suppliers, stockiest, and wholesalers. Indian Garment Industry

has carved out a niche in the global markets and earned a reputation for its

durability, quality and beauty. Today’s changing consumer preferences –

buying branded apparel and fashion accessories, major boom in retail

industry, people shopping at department and discount stores, shopping

malls, with rising disposable incomes, government policy focused on fast-

track textile export growth, and ambitious goals have created several

investment opportunities in India.

Government has even made effort to include benefits for Garment

Industry. The annual plan for 2007-08 formulated by Indian government to

promote the textile sector, includes schemes for attracting foreign direct

investments, brand promotion through public-private partnership (PPP) for

global acceptance of Indian brands, trade centres for facilitating business

and image building, fashion hubs as a stable marketplace for Indian

fashion, common compliance code for creating apparel standards for the

benefit of buyers, and training centres for developing human resources.

1.2 HISTORY:-



Indian sub continent is the second largest manufacturer of garments

after China being the global leader in garment production. India is known

for its high quality garments for men and most of the garment

manufacturers are in the Small and Medium scale industry. Indian men's

clothing industry has been growing steadily over the past few years, this

has been possible owing to the Indian male becoming more fashion

conscious, and hence there is more consumption which has increased

global demand of men's garments by the rest of the world.

India Garment Industry has an advantage as it produces and exports stylish

garments for men at economical prices due to cheap labour rates. Today because of

technological advancement and use of sophisticated machinery it has enabled the

manufacturers to achieve better quality and well designed garments. India’s

Garment Industry has been rapidly growing in last few years. Exports have been

rising as there is an increase in orders from global buyers accompanied by a rise of

investments in the garment sector of the country. From all over the world the

Retailers are come to India traced by low production costs.

1.3 EVOLUTION:-



In southern India’s Tripura town, young girls are lured to work

in the garment industry with a promise of ‘golden opportunity’ to earn

their own dowry at the end of a three-year apprentice period. Garment

industry of Tripura projects a turnover of Rs 10,000 core this year, down

from Rs 11,000 core in 2006-07.

The Indian Garment industry is today modernized via an

exclusive scheme, which has set aside $5bn for investment in

improvisation of machinery. International brands like the Levis, JC Penny,

Wal-Mart, Gap, Marks & Spencer and other industry giants are sourcing

more and more fabrics and garments from India.

According to a study China and India will be major gainers.

Where India could increase their share from present 3% to 8% in US

Garment market.

The garment industry in India faces stiff competition from

countries such as Bangladesh, China and Vietnam. There is a pressure on

the Indian garment industries to produce finished garments at lower costs

to survive the cut-throat competition.

Garment Industry in India is looking at achieving an export

target of $25 billion.

The industry today would need an additional 1.5 million

people.

An investment of Rs. 35000 core in terms of related

infrastructure is required.

1.3 MAJOR GLOBAL PLAYERS:-



Carolina Herrera

Oscar de la Rental

Calvin Klein

Donna Karan

Liz Claiborne

Nicole Miller

1.4 MAJOR INDIAN PLAYERS:-

Pantaloon Retail India Ltd

Shopper’s Stop

Tata – Trent

Globus stores Pvt Ltd

Pirmayd Retail Ltd

Arvind Brands Ltd

Provogue India Ltd

The Raymond Group

1.5 CONTRIBUTION IN GDP :-



The Indian Garment Industry has an overwhelming presence in the

economic life of the country. Apart from providing one of the basic

necessities of life, the Garment Industry also plays a pivotal role through

its contribution to industrial output, employment generation, and the

export earnings of the country. It contributes about 14 per cent to industrial

production, 4 per cent to the GDP, and 16.63 per cent to the country's

export earnings.

1.6 EMPLOYMENT GIVEN BY INDUSTRY:-

It would provide direct employment to over 35 million people by

2010, which includes a substantial number of people from less privileged

sections of society. The textiles sector is the second largest provider of

employment after agriculture.

In 2006, India’s Garment industry employed 35 million people

including women and backward classes.

1.7 FUTURE TREND:-

The world of clothing is always changing, as new cultural influences

meet technological innovations. Researchers in scientific labs have been

developing prototypes for fabrics that can serve functional purposes well

beyond their traditional roles, for example, clothes that can automatically

adjust their temperature, repel bullets, project images, and generate

electricity.



Company Profile.

2.1 INTRODUCTION:-



The year 1986 marked the inception of GINZA, since then Ginza

have gone to become one of the most sought brand for fashion fabrics,

accessories and now having new focus on developing the same image in

garment field as well.

After nearly two decades of intense and committed efforts, with its

persistent belief in “Quality and innovation is the only guarantee of

customer’s satisfaction” It has various product ranges. Ginza’s all plants

are backed up by 24X7 uninterrupted power supplies. Time to time Ginza

revises its marketing strategies to become a successful player in the

market.

Ginza offers the biggest range of garment fashion accessories in

hundreds of hues and designs. Each line of product from Ginza is an

outcome of "Excellent Craftsmanship and innovation".

Equipped with latest machinery and expert technicians, Ginza has

managed to deliver quality products at competitive rates. It is this policy of

quality and innovation that has helped Ginza in building long term

relationships with best names in the industry as its customers.

Ginza has its own brand name Intense.

Ginza strike deep roots in the domestic branded garment market, and

its flag flies high in some of the most fashion and quality conscious

markets in the world: Europe, USA, Middle East. In each of these markets

Ginza have won the enduring confidence of buyers, leading to repeat

orders time to time.v



Ginza has become perhaps the only company in the world, having

all the major activities of Ladies Undergarments in house, looking for a

major share in Indian Ladies Innerwear Exports in next 3 years.

2.2 BOARD OF DIRECTORS:-

Mr. Ashok Sethia Founder, CMD &

Marketing Department

Mr. Manoj Sethia Joint MD

Mr. Arvind Sethia Executive director

Mr. laxmipat banthia Whole time director

Mr. maganmal baid Whole time director

Mr. ajay agrawal Whole time director

2.3 INFRASTRUCTURE:-



A state of art plant having machines from JUKI, SUNSTAR,

PEGASUS, and EASTMAN with customized molding, underwire,

lamination, embossing & eye and hook facilities. This unit has a

production capacity of around 1000 dozens per day and is being expanded

to about 2000 dozens before this year end. This unit is compatible to meet

all International Standards & 100% of the production is being exported to

the U.S market at present. This unit is spread over a total area of

approximately 80,000 sq. feet.

2.4 Goals of the Company:-

As Ginza is new in the Garment sector the main objective of Ginza

is to expand its roots in the global market and domestic market as well.

To provide good quality and designer garments to the customers and

exapand its turnover from approx 20 crore to 25-30 crores.

2.4 ACHIEVEMENTS:

Ginza believes that quality is a dynamic and has to be integrated into

each of their processes so that the outcome is perfect. Due to this Ginza

secured ISO 9000 certification in 2008.

Ginza also won the WRAP (Worldwide Responsible Accredited

Production) certification in December, 2009.



2.5 BANKERS.

Union Bank Of India

State Bank Od India

Bank Of India

The Saraswat Co.Op. Bank Ltd

The Hsbc Ltd

Standard Chartered Bank

Idbi Bank Ltd

Allahbad Bank.

2.6 PLANTS:-

Yarn & tape unit

Warp knitted fabric unit

Torch on lace unit

Garment unit

Value addition unit

Eye & hook unit

Garment unit

Raschel & warp knitted fabric unit

Embroidery unit

Process house

Warehousing facilities



2.5 LOCATION :-


Head Office: Kimatrai Building, 2nd Floor,

77/79 Maharishi Karve

Road,

Marine Lines, Mumbai: 400

002

Email: [email protected]

Website:

www.ginzalimited.com

Surat

Branch:

Plot No. A-15, 16, 17

Sardar Patel Road No.2,

Udhana, Surat

Plant: Plot No. 61,

Road No. 4,

parel Park,

Sachin, Surat


Organizational Chart.

Managing director

General Manager.

Human resource finance production marketing

Manager manager manager manager

Assistant manager assistant manager Department

In charge

HR officer Clerk



Worker

Purchase sales officer advertisement import & export

officer manager manager

sales manager

Know the company:

An ISO 9001 : 2000 certified company engaged in offering Raschel and Warp Knitted

Fabrics and Laces, Cotton Braided Laces, Woven and Knitted Elastics, Embroidery Laces

and Fabrics, Textured and Twisted Yarns, Eye & Hook, and Women’s Fashion Wear, etc.

Catering to the requirements of garment, textile and home furnishing industries,

we, Ginza Industries Limited are offering distinct kind of Fabric, Garment and allied

products to our customers. Started in the year 1986, we are reckoned as a top

notch manufacturer, exporter and importer of Raschel and Warp Knitted Fabrics and

Laces, Cotton Braided Laces, Woven and Knitted Elastics, Embroidery Laces and

Fabrics, Textured and Twisted Yarns, Eye & Hook, and Women’s Fashion Wear,

etc. Manufactured using the best quality nylon and polyester, our collection is widely

known for its soft texture, smooth finish, colour fastness, exclusive design and several

more salient features. In addition, we also offer value added services On Net and Lace

Fabrics with Prints, Flocking, Embossing, Shading, Pleating Crushing, Paper / Foil

Printing and many more. Moreover, owing to our quality centric approach, innovative



product features, we have acquired many clients like Wal Mart, Gel Mart, K-Mart and

others.

“Excellent Craftsmanship and innovation” has always been our motto. Hence, we have

appointed an expert team of craftsmen, creative designers, experienced technicians and

others, who have immense experience in the industry and hold relevant credentials. With

the help of our state-of-the-art machinery and sound production unit, they manufacturer

our range, which is confirmed as per International Quality Norms. Due to our team

support, innovative collection, we have established a strong foothold in the domestic as

well as international markets.

SUCCESS STORY

Ginza straddles the entire spectrum of feminine fashion with a range of fashion fabrics,

accessories and garments. Their success in these areas has led them on to the world of

their wide appeal brand.

Ginza began operations in 1990 in an industrial zone here in Surat, with Raschel and

Wrap Knit. Equipped with state of the art machinery, this plant today has a production

capacity of over 200 million meters per annum. This plant also hosts Ginza’s in-house

design studio. Brimming with creative energy, their young design team has helped Ginza

create fine fabrics that have won the acclaim of the biggest buying houses in Europe and

USA.

Catering to the finer aspects of design and craftsmanship, Ginza specializes in the

production of stretch lace and tricot fabrics across floral, printed and mesh varieties.



Today, Ginza enjoys the status of being India’s only producer of Jacquardtronic fabric, a

fabric that caters to the distinct needs of the Indian customer.

With the launch of an Embroidery unit at Sachin, Ginza marked its foray into

embellishment and detailing. Modern Swiss and Korean machines helped them to

introduce Schiffli embroidery, delicate sequencing and cording techniques into our

production efforts. The success of this unit helped us broaden our offering to include

motifs, patchwork, sarees, laces, gupier fabrics and collars among others.

Their quest for backward integration led to the establishment of two more specialized

units for the manufacture of elastic tape and yarn, as well as a unit that produces just lace

braiding.

As their products found wide overseas markets, they set up 100% Export oriented units

for the manufacture of wrap knitted fabric, and eyes for brassieres-which brings them to

one of Ginza’s ambitious ventures. A forward integration project for the manufacture of

high quality of ladies’ innerwear. Their inner wears are designed and produced to

international standards at apparel park, Surat, are being sold under major American labels

across stores in the USA since 2006.

This strong endorsement in overseas countries led them homewards to the vast Indian

market. Sold under the brand name of SOIE, this marks their successful entry into the

huge domestic market for branded under garments. The domestic launch of our inner

garment line was made all the easier because of the customer recognition already

established by their outer wear line which had been launched in 2008 under the

INTENSE brand.



Even as they strike deep roots in the domestic branded garment, their flag flies high in of

the most fashion and quality-conscious markets in the world: Europe, USA, and Middle

East. In each of these markets they have won the enduring confidence of knowledgeable

buyers, leading to repeat orders, time after time.



MARKETING DEPARTMENT.

ORGANITION OF MARKETING DEPARTMENT:

The marketing manager is responsible for coordinating & controlling of all the

activities of the department with the help of competent executives. A marketing manager

must be skilled in planning organization, coordinating & controlling all marketing

operation.

A marketing organization is like power station sending out energy which is

devoted to selling & distribution on particular lines & there is a tremendous gape between

the power-station & point where it reaches the consumer. Therefore there arises a great

necessity of planning, organizing & controlling all sales efforts through a sound

marketing organization to prevent wastage in distribution.



MARKETING MANAGER

The head office of the marketing department of GINZA industries is at Mumbai

as it is one of the main business center of India. This company doesn’t face any

marketing problem as it products on order basis. GINZA market is widely.

The organization follows line & staff type of organization system. The main

responsibility of this department is to determine the product to be produced to determine

the selling cost & produces etc…

MARKET SEGMENTATION & CONSUMER BEHAVIOR.

Model marketing is consumer oriented the primary object of marketing is to

satisfy only when the company concentrate on limited number of well define group of

consumer therefore primary task of marketing manager is to define & select target

market.

GINZA industries produce products on the order basis. GINZA has number of

major customers from which customer from which they get order so; its task is to


Purchase officer Sales officer Import export manger

Sales manager


increase production with quality maintaining & consumer satisfaction. It has different

types of group of customer which wants different products for the manufacturing.

According to Webster “consumer behavior is all psychological, social & physical

behavior of potential customer as they become aware of evaluate purchase consume &

tell other people about products & service. ”

In GINZA have a fixed consumer which buy product from him. From these

consumers they satisfy than they tell other in favor of its product & GINZA also get a

new customer.

ii) Product Portfolio

The stunning range of fabrics and other products are highly acknowledged for their soft

texture, smooth finish, color fastness, exclusive design and many other traits. We offer an

attractive range that is as follows:

Product Range.

Warp Knitted Fabrics

100% Nylon Warp Knitted Fabrics

Nylon Spandex Stretch Fabrics

100% Polyester Printed Net Fabrics

100% Polyester Warp Knitted Fabrics

Nylon Spandex Power Nets

Raschel Fabrics

100% Nylon Allover Fabrics

Raschel Fabrics With Lurex Raschel Lurex Fabrics with Fall Plate Effects

Nylon/Spandex Fabrics 100% Nylon Raschel Fabrics with Fall Plate Effect

Raschel Jacquardtronic Fabrics



Fascination Fabrics

100% Nylon Fascination Fabrics

Nylon/Spandex Fascination Fabrics

Nylon/Polyester Fascination Fabrics

Embroidery Fabrics

100% Cotton Embroidered Fabrics

Gupier Fabrics Embroidered Fabrics with Sequence and Cording effects

100% Nylon Net Embroidered Fabric

Nylon Net/Lurex Embroidery Fabrics

Embroidered Sarees with Sequence Work

Polyester/Cotton Embroidered Fabrics

SE 38

Computerized Talam Fabrics

Talam Strolls Talam 100% Nylon Allovers Talam Nylon/Polyester Allovers

Talam Suit Dupattas Talam Sarees Talam Dupattas

Talam Nylon/Spandex Fabrics

Torchan Lace 100% Polyester Allover Fabrics

Jacquard Fabrics

Jacquard Allover Fabrics Jacquard Furnishing Fabrics

In addition, we also offer following range of products:

Laces:

Nylon/Spandex Raschel Laces

100% Nylon Net Embroidered Laces

Jacquard Laces

Nylon/Lurex Raschel Laces

100% Cotton Embroidered Laces

Torchan Laces



100% Nylon Raschel Laces

Gupier Laces

Cotton Crochet Laces

Value Added Fabrics:

Embossed Fabrics

TCF-288 Fabrics

Frilled Fabrics

Laminated Fabrics

Fancy Fabrics

Elastics:

Shoulder Elastic Tape Shoe Elastic

Frill Knitted Elastic

Folding Elastic & Garment Elastic

Knitted Elastic

Jacquard Elastic

Frill Elastic for Bra & Panties

Plain Knitted Elastic

Printed Elastic

Plain Woven Elastic (Basic Tape)

Undergarments:

Designer Bra & Panties

Sport Bra & Panties

Padded Bras



Foam Padded Bras

Garments:

Ladies high fashion garments

Kurtis

Designer Tops

Skirts

Ladies Nightwear's

Ladies Beach wear

iii) PACKAGING.

“Packaging is the buyer’s first encounter with the product & is capable of turning the

buyer on or off”.

While packaging the fabrics, the company uses quality-packaging materials like

polythene sheets and others. This assists in ensuring the safely of the end products during

the transits period. Our entire packaging process is conducted under the supervision of

our experienced packaging personnel, Further; the company has association with various

transportation and logistic agents, which helps us in smooth and prompt delivery of the



range to the final destinations. This ensures the timely delivery of our consignments to

the clients.

iv) PRICING STRATEGIES

“Pricing is just not a number on a tag or an item. It represents the product in

a very large way.”

Pricing policy of the company usually stable, it does not keep on fluctuating with time

and the price is decided after taking into consideration the price of its competitors.

According to the company the price of the finished product is decided on the basis of

the price of its raw material. Say for example if the demand of petroleum is increased or

decreased then it consequently affects the price of the raw material and also the price at

times depends on the demand of the product also

The price of the company changes, when the yarn market is in boon period the price

tend to be high and vice-versa.

The Ginza Company follows this pricing policy, which is show here.

PRICE=COST+MAGIN+BRAND EQUITY

This Criterion is called forward pricing. However, In Cutthroat Competition, Ginza has

Adopted Backward pricing, I.E. First of all, they determine the Price at which it can be

sold having deducted the required margin from the basis of which it achieves the cost.

Then it strives to reach the determined cost. It assists the company in Effective cost

control in reducing Wastage.

In GINZA industries pricing is fixed with great concentration & care. The

manufacturing cost is the main determinant for fixing price. First of all cost is decided by



costing department then board of director decided the price of the product with adding a

profit. In deciding price of product they also consider discounts allowances.

.v) PRODUCT LIFE CYCLE

A company’s positioning and strategy must change as the product, market, and

competitors change over the product life cycle. To say that a product has a life cycle is to

assert four things.

1. Products have a limited life.

2. Product sales pass through distinct stages, each posing different challenges,

opportunities, and problems to the seller.

3. Profits rise and fall at different stages of the product life cycle.

Product requires different marketing, financial, manufacturing, purchasing, and

human recourse strategies in each life- cycle stage.

There are four stages of Product life cycle like:

1. Introduction Stage: the stage where company introduce itself in the market.

2. Growth Stage: In this stage, a product of rapid market acceptance and substantial

profit improvement.

3. Maturity Stage: In this stage, sales growth of product is slowdown, the product

has achieved acceptance by most potential buyers. Profits stabilize or Decline

because of increased competition.



4. Decline Stage: sales show a downward drift and profit erode.

Right now in Ginza Industries Ltd, their product with code “82004b”

is at it’s maturity stage.

VI) CHANNELS OF DISTRIBUTION AND INTEGRATED MARKETING CHANNELS

CHANNEL DISTRIBUTION:

According to Mc. Mc.Carthy, “any sequence of institution from the products to be

the customer including one or any number of middlemen is called channel distribution”

Channel of distribution may be defined as the set of marketing institutions. The

term channel of distribution is used to denote the middlemen engaged in moving goods

from the place to production to the place of consumption. In the field of marketing

channel of distribution initiate root or pathway through which goods flow producer to

customer.

The most common router used for bringing product in the market from producers

to customer are as under.

Manufacturer consumer

Manufacturer whole seller consumer

Manufacturer retailer consumer

Manufacturer whole seller retailer consumer

Manufacturer agent whole seller consumer



GINZA producing on the order basis so, it does not take any help from the

middlemen or any selling or distribution agent. Hare, the product directly supplied to the

customer. Thus the company has a very short channel of distribution.

Marketing channels are independent organization; subsidiaries; and the

companies own sales employees in the market. These make the product available for the

end customers. Selection of the correct marketing channel or channels is a crucial

decision for a company, since the right channels can offer competitive advantage such as

cost effectiveness, and because it is neither easy inexpensive to change channels. Ginza

industries apply B2B marketing so large numbers of buyers are other organizations only.

Types of marketing Activities.

Marketing can be done in different levels depending on how the customers the company

wants to reach. The levels differ in factors like effectiveness, cost and have different

purposes.


GINZA INDUSRIES

CUSTOMER & PARTY


It includes following activities :

Local Marketing

Refers to marketing programs tailored to find the needs and wants of

Customers in a small and well-defined geographic region.

Individual customer marketing.

It is marketing done on a one to one basis where each individual

Customer‟s requirement are individually addressed”.

Marketing in different levels can be done with different methods. Examples of marketing methods are :

Personal discussions, telephone communication and Email.

Letters, Prospects, Pamphlets and catalogs.

Homepages

Sponsoring

Exhibitions

Direct marketing

Public relations



There are four different types of marketing which the methods above can be sorted into.

Direct and personal marketing :

It is selling discussions between the salesman and the customer. It

Can also be service and advice from the selling company, oration and personnel selling.

Direct and impersonal marketing :

It is direct advertising with written information.

Indirect and personal marketing :

It is a link which is handled by actors between the

Manufacturer and customers.

Indirect and impersonal marketing :

It is the media advertising from news papers, articles,

Television and radio.

In Ginza Industries Direct and Personal marketing is done, as they won’t

advertise themselves at any public platform at large. They personally meet

the customer and share the details about the product.



Different Threats :

Threat of new entrants :

The entry of new competition into a market often leads to price pressure more intensive

competition and reduced profits for the other competitions in the market. The principal

impediments which tend to prevent new competitors attempting to enter the market.

Threats from segment competitions :

Common methods for improving ones position in the market are: Price, competition,

advertising, intensified, introduction of new products, improving customer service and

offering strong product warranties. The intensity of the competition depending on number

of competition; trademark identity; consumer demand variety of available products,

inflexible costs etc.

Threats of substitute products :

There are two ways treat the pressure from compensation products; develop a strategy

that stops for other products and accept the product like a factor on the market. The

threats from compensation products are that it costs to change supplier, the customers

unwilling to change supplier and price performance from the competitor.

At present there are no competitors for Ginza Industries, as they are maintaining the

monopoly in the market. But there are some companies that are going to start up with the

production work in near future that can threat monopoly of the company.



Different Factors.

Internal Factors :

Every business needs to evaluate its internal strengths and weaknesses. The company

does not need to eliminate all weakness, and a question that should be considered

whether is they should repair its weakness or consider those weaknesses might actually

be converted to advantages.

External Factors :

Opportunities refer to future possibilities in existing and potential new markets. For

examples, the company may create direct marketing opportunities by establishing a

presence on the Internet; do a better job of making information about its products and

services available to customers; introducing new precuts and services; for particular

markets or customers and improving the delivery time for its products and services.

Market Promotion:

In the word of Masson & Ruth. “Promotion consists of those activities that are

designed to bring a company goods & service to the favorable attention of customers”

It’s time gone when the customers were innocent & not so informed of products

availability. They were buying what they offered. However, today’s customer is not like

that, rather they are most intelligent & educated who know everything about the product.

They also have lot of choice.

Sales promotion is a new trend in business units. It covers all marketing activities

like advertising, publicity that stimulates consumer purchasing & dealer effectiveness. In



short , sale promotion are bridge or a connecting link covering the gap between

advertising & personal salesmanship.

The main objectives of sale promotion are.

Providing information

Increase in sales

Reducing cost

GINZA industries produce products on order basis. By this way they increase the

quality of product. By increasing in quality or reasonable price they get a new orders

from new customers.

Advertising is nothing but a pair of non personnel presentation of idea, goods of

service by an sponsor. In the present day, advertising has become an inseparable part of

the business. However the form of advertisement may different from business to

business.

GINZA has need for the advertisement. GINZA has advertise their product in

magazine, news pepper, sales promotion, diaries etc…

They spend in advertisement is depended their net profit.

Marketing Research And Activity:

The marketing manager has to take various decisions regarding the different activities of

marketing. The correct decision can be the outcome of the analysis of the punctual data.

In modern marketing system management does not produce what it can the sell but it puts

the goods in the market whatever is desired or required by the consumer. Marketing

research by relevant facts can aid considerably to the executives to raise the level of

performance .

Marketing research may be defined as the application of scientific method to the

solution of marketing problem. Marketing research is any systematic attempt to get

information useful in moving market problems.



In , GINZA they also follow the marketing research procedure. marketing research

team visit all industry sectors & study the needs & desire. They try to introduce new

facility every time.

Production management.



Production management:

“ Production management is the deals with the production of goods &

service that people buy and use everyday this production management

function enables the organization management to achieve its good through

efficient acquisitions and utilization of resources like land , labor , capital,

raw material ,machine”

Production is one of the main stages of an enterprise without which a manufacturer can‟t

survive. It converts the raw material into semi-finished goods and then converts into

finished goods.

According to Buffa,” Production management deals with decision making regarding

production of goods & services at the minimum cost according to demand of customers

through the management process of planning, directing, and controlling.”

Production Planning:

Ginza is a company that produced textile products. Before producing product Company

plans a schedule on a yearly base, monthly bases & it goes very deeply by preparing a

weekly schedule.

For preparing this schedule they consider the following points.

The lead of the product.

The preparation time of the product.

The demand of the product in market.



According to these points they use to plan the schedule and give the order to

produce the product.

Responsibility of the production manager:

The responsibility of the production manager in to the Ginza Company is as follows.

To control the cost of the production.

To motivate workers for maximum efforts.

To fulfill demand of the customer.

To plan production schedule.

To avoid defective goods.

To maintain enough semis finish goods as well as finish goods.

To decide on way of handling and re handling.

Operation management:

“operation management refers to the planning , organizing, directing , and

controlling of input like land, labor etc into desired output to good and service so as

make the goals of the organization in accordance with they overall strategy ”

Production:

“Production means any activities process which adds to the GDP of nation

or economy here economy cover all three sectors namely mfg agriculture and service”

Introduction:



“Production is a process of converting input into output” i.e. raw material is converts into

finish good. In relation to physical goods, production means manufacturing an object

using various input like raw material, power, labour. In relation to services, production

means discharge of any function which has got some utility.

Both knitting is a continuous process.

While it is continuous process the production in bulky size.

In dyeing house they have laboratory for checking the raw materials and fabric.

They also use bills of materials

In Ginza industry they produce the seasonal wise production like autumn winter, spring

summer, high summer they using fabric according their requirement or seasonal

production.

Raw Material House.:

It is available in large scale. It’s also near to fabric checking machine so , that the raw material testing can be easily. Our company have many type of fabric like georgette, chiffon, cotton, modal voile, modal satin, santoone, viscose twill, cotton lyena etc. materials are purches bye the company like mandhana cotton mill, arvind mill, wels pun, madhuva coats, vardhman.



Ring and slide:

Is also available in different size like 15mm, 12mm, 16mm, 8mm..

Eye and hook:



Ginza's foray into the global markets demanded the establishment of an exclusive

unit to cater to export needs . this unit came into being as a result.

Our state of the art eye & hook unit , established in October 2007, has a

production capacity significantly.

With the commissioning of this plant the entire manufacturing process for ladies

brassieres is now completed in-house by Ginza.

Set up under the technical supervision of a renowned overseas domain expert, this

unit

provides quality that can be benchmarked to the world's best.

Is also available in different size like 18mm, 30mm and 40mm.

Lace:



T ORCHON LACE BRAIDING UNIT

Our Torchon Lace Braiding Unit is located in palghar, on the out skirts of greater

Mumbai.

this facility has 13000 spindles and produces a wide range of Crochot, Torchon, Bobbin-

Laces & Fabrics

with capacity of 15million meters per annum.

This facility is built on area of 35000 sq feet and features top of the line

equipment from Takeda Mayer, Japan and Come.

Threads:



Elastic:



ELASTIC TAPE AND YARN UNIT

Located in the pictiresque sea-side town of Daman, the elasticape unit of Ginza

meets almost all of our in house requirements. We use state of the art machinery

from global leaders:

Comez, Omm, Britenbach,EPIS, KY, Jakob muller to produce a range of elastc tapeds -

knitted and woven, velvet ribbons and fancy crocheted fabrics. This uint has a production

capacity of 150 million meters per annum.o

Daman is also the location for our yarn unit. conceived as a backward integration

project that would give us enormous cost and quality leverage, this unit is

powered by machines from Barmeg lshikawa and Muratta machines of German &

japan make. This unit produces 3 million kgs. of nylon, polyester, crimped &

filament yarn per annum.

It’s also available in different type and different size and different color

Machine shope



In machine shop the semi finished goods are given a finishing touch. In this department

small semi finishing goods like the cutting part of the fabric are given a finishing touch.

In this department used the different type of the machine according their requirement .

Fabric checking:

Cutting department:



In this department cutting of raw material is done different size and shape so, as to

available the production unit their requirement of the raw material for the cutting purpose

cutter machine are used. a person is employed for this that cuts the fabric in different and

require shape. In cutting department total worker is 10.

Straight knife machine:

Band knife machine:



Heating process:

Under this process the raw materials are heated to give a desire shape.

Band knife machine:



Stitching department

In stitching department all worker are stitching the different part of the garment or undergarment. It is the target based for example one worker produce the 40 pcs per day. One worker gives only one operation. In stitching department in garment section total machine is 100 and worker are 78 other machine are extra when any machine is not work that time it using. In undergarment the total machine is 150 and worker are 130 and 20

machine is extra machine.



Single needle machine:

There are 74 machine .capacity is depends upon the machine, style and

ability of the worker.

Flat lock machine:

There are 2 machine are available.



Zig zag machine:

There are 2 machines.

Over lock machine:




Chain stitch machine:


Checking department

Here the all product are checking properly if any product are damage its going in wastage

section. All workers try to minimum waste of the material.

Finishing and packaging:

All products are complete then the finishing the product they using the different type of

machine like kaaj machine, button machine, steam iron mac hine, checking table and

then after finely the product is packing. In finishing department the total worker are 48

and checking table is 2 and worker is 4 who check the final product. Kaaj machine is 2

and stem iron machine is 3.



Checking table:

Dispatching:

Dispatching is actually authorizing or assigning the work to be done at different work

centers by listing all the job available to a work center in their priority sequence & giving

the due dates for each. It is done by issuing job orders, job cards and material issue to the

foreman. it is implementation of planning.

Function of dispatching:

1. Providing for movement of raw materials from stores to first operation machine &

between all different operation

2.collecting tools from the tools stores & issuing them to the worker or the machine.



Materials handling:

“Material handling can be defined as storage reservation & controlled movement of

different materials in any from (raw material, finish goods, stores & spares, supplies,

packing, wastage by product) from one place to another place starting from receiving

through storage production packing up to final shipment material handling utilizes proper

scientific method technique & equipment so that time & space utility is created at the

lowest possible cost”

Equipment is use for the material handling:

In Ginza industry use the equipment areas under

Elevators

Trolley

Industrial vehicles

Etc



Materials receipt procedure:

Material receipt procedure of all industries will be different. All industries mean different

fields. Procedure of receipt will follow which is as under.

When material will come to the company, the deliveryman will come with invoice and

challan in which quality & quantity of material will have mentioned

The deliveryman will contact to the production manager.

The production manager will sign the challan and gives gate pass to deliveryman.

The supervisor will check the material quality, quantity and weight.

If quality, quantity and weight will have according to order, then it enters in,

If material will be accepted, the delivery challan, excise invoice, bill of material which

includes freight, sales tax, excise tax etc. will be signed by manager.

Material issue procedure:

Procedure of issue will be followed which is as under:

As soon as company that will be department head receives order , the supervisor will be informing to deliver the said order

Supervision will prepare challan in which name of customer, details of package no. weight, quantity etc.is given



Plant layout:

Plant layout is the physical arrangement of machine, equipment and other facilities like receiving, shipping tool rooms, maintenance room, inspection, cabin, stators etc.

Type of plant layout

Product layout

“In this type of layout they machine & facility are arranged according the sequcance of production required by a particular product so for each product there will be separate line of machines or equipment”

Product layout

Raw materials

Checking department

Cutting department

Cut-part department

Stitching department

Checking department

Finishing department

Final checking



Packing

Finish goods stores

Process layout:

In this layout all the machines or facilities performing similar type of

operation or function are group

Together in the same area or section or department thus all casting are

made at one place or section know as foundry turning is done in a turning

section where all lathe machine are group in one machine welding machine

will be there and drilling section all drilling machine will be there.

Process layout

Selection of fabric

Section of design

Prepare the sample

Garment presentation

Garment selection procedure

Lunching the garment

Promotion activity



Oder feeding

Production process

Product Name:

Laces

Net fabric

Raschel fabric

Eye & hook

Elastics

Leggings

Trousers

Jackets

Casual shirt

Dress

Kurti

Tops

Tunics



HUMAN RESOURCE DEPARTMENT.



“HUMAN RESOURCE MANAGEMENT is a management function that helps the

manager to recruit, select, train and develop member for an organization. HRM is

concerned with the people dimensions in the organization.”

Organization is not just bricks, motors, machines or inventories. They are people. It is the

people who staff and manage the organization.

“human resource management, in the sense of getting things done through people. It’s an

essential part of every manager’s responsibility, but many organizations find it

advantageous to establish a specialist division to provide an expert service dedicated to

ensure that the human resource function is performed efficiently.”

Human resource management is a management function that helps the managers’ recruit,

select, train and develops members for an organization. HRM is a concerned with the

people dimensions in an organization. It is also concerned with hiring, motivating and

maintaining people in an organization. It focuses on people in organization. A formal

definition of HRM is as follows:

“ HRM is the planning, organising, directing and controling of the procurement,

develpoment, compensation, integration, maintenance and separation of human resources

to the end that individual, organiztional and social objectives are accomplished.”



Human resource department

Managing director

General Manager

Assistance manager

Senior executive

Executive officer

Accountant

Assistance

Staff



Scope Of HRM.

The scope of HRM is indeed vast. All major activities in the working life of a worker-

from the time of his or her entry into an organization until he or she leaves- come under

the purview of HRM. Specifically, the activities included are:

Nature of HRM

Employee hiring

Prospects of HRM

Industrial relation

Employees maintenance

Employee motivation

Employee and excutive remuneration

Activities Of Personnel Department.

Human resource department is one of the very important part for any unit. Because it

maintains the relationsip between the workers and their owners and also helps it in

maintaining proper atmosphere in the company. The main aim of HRM is to recruit and

select themost eligible peson for a particular job. Once a person is selected then it does

not mean that the job of HRM is done, infect their job starts there itself. After the

selection of the employees for that particular job the human resource managers have to

give the best remuneration to the employees and also have to motivate to his employees

to work harder and also in an efficient way. The most important part of HR department is



the maintenance of relationship. The relationship is being primary and the activities

involved in HR department is like recruitment abd selection, human resource planning,

trainning and dvelopment, promotion and transfer, giving performance appraisal,

formation of wages and salary structure, employee welfare schemes, maintenance of

human resource audit, hierarchy structure maintenance, maintaining Absenteesim rate

and employees turnover rate.

Recruitment And Selection.

Recruitment.

In a simple words recruitment can be defined and understood as the process of searching

for and obtaining applicant for the right jobs, from among whom the right people can be

selected.

k. Aswathappa defined recruitment as “it is the process of finding and

attracting capable applicants for employement”

recruitment is a process to disover the sources of man power to meet the requirements of

the staffing schedule and the employ effective measures for attracting that man power in

adequate numbers to facilitate effective selection of an efficient work in force.

Recruitment Of Lower Level Employees.

In this firm there is no formal recruitment process adopted for lower level of employees.

The only source of recruitment for them is on the gate and preseent employees. They tell

their present employees about the requirement and they inform their relatives and then

hire the employees . for some technical people, they inform the contractors and after that

they are responsible for the recruitment of the employees.

Recruitment Of Higher Level Employees.

For recruiting higher level of employees, a formal process is adopted. First of all a

recruitment planning is done. They decide about the number and type of people required.



They, then look for the sources from where they can get their propable employees. The

most important source of recruitment for the company is campus interview and

advertising. The other sources are personal contacts, employee’s reference, etc. then all

the application screened and qualified applications are selected for further processess.

Selection:

In a simple word selection can be defined and understood as the process of picking

individuals with requisite qualifications and competence to fill job in the organization.

k. Ashwathapa defined selection as “it is the process of differentiating between applicants

in order to identify those greater likelihood of succcess in a job.”

Selection means choosing an eligible candidate from all the applicants.

Selection oF Process In The Company.

After the recruitment had been completed the selection procedure starts. The first step in

recruitment process is interview.

Preliminary Interview. :

An interview is held after having been received the application of the candidates. In

addition to filling up the application blank, the candidate is also supposed to pass through

the color blindness test, color recognition test, remembrance of quality test.

Final Interview.:

The candidate is called for final interview after having passed the various tests. In the

interview, aptitude, intelligence, background and adaptabilityof the job is scrutinized

properly. Successful in the interview are sent for physical examination. A candidate

matched with physical criteria is placed on the job suited to him.



Educational Criteria For Employees.

For Labours:-

No educational background is required. They should have skills and experience for the

job wages is given in accordance with the daily wage system.

For Temporary Staff Of Supervisory level:-

The candidate should have minimum qualification to suit the requirement of the job.

Generally, science graduates or diploma in engineering field are recruited.

For Permanent Staff Of Managerial Level:-

Engineers possessing textile, mechanical or production degrees are employed to

respective jobs.

Human Resource Planning .

As in the Ginza Industries the nature of workers is very fluctuating and there is number

of job opportunities to the workers so there is very immediate changes in the position of

the workers in the industry so there is no need of maintaining Human Resource Planning.

Training And Development.



Successful candidates placed on the jobs need trainning to perform their duties

effectively. Every organization needs educated, experienced and trained personnel to

handle the activities. Trainning is a process of learning programmed behaviour. It is an

application of knowledge. It attempts to improve the behaviour of the people on the

current job. It gives people an awareness of the rules and procedure to guide their

behaviour.

“Training is any attempt to improve current or future employee performance by

increasing an employee’s ability to perform through learning.”

It is very necessaryfor the company to train their personnel or workers to perform the

activities. It simply means teaching the employee, the entire skill of performing that

particular job. The company adopts various methods for training their employees.

Ginza Industries selects those employees who have sufficient knowledge and/ or

experience for the position to which they are assigned. Thus they are not required to learn

the basic operation of production, but instead how those operations are carried out in

firm, in its own secular way. Thus the firm does not have to spend precious time and

resources for the training.

If training is required for a particular emploee, the head of the particular department

trains him. He is assigned work which can help him get used to environment. The

contractors handle the training of labourers. The contractors hand them over the

experienced man to tain the labour because it helps in reducing scrap and avoid accidents.

Training Programs.

The HR department organises training progamme for the employee within and outside the

company based on the performance of the individual. The department organizes training



to over come the limitations. It organizes seminars at training centres at the learning skill

department.

Objectives:

To increase the productivity and creativity of an individual

To enable the employee to update their knowledge, increase the level of

performance.

To create an environment of “we feeling” and enhance the accountability of the

people.

Bring the desired change in the organizational culture and management processes

through in

Calculation of desired values, beliefs and mindsets in consonance with the

organizational needs.

Base on performance review and organizational studies conceptualize, design and

develop the existing competencies, professional’s skills and learning techniques

for higher level of proficiency and realization of their potential.

In Ginza Industries, training programmers is done throughout the year. Training is

provided for both internal and external employees. It is not only for employees it is also

providing for the fresher and to those who are not in the organization. For providing

training, companies hire faculty from inside as well as outside the organization. The

training should be important for all the employees at all the levels of the organization.

Job Description And Specification.

In job description, it includes about how the job is to be done. In this textile business the

job can easily being learn as the most of the work is done by the machine only the worker

has to learn that how the machine can be operated but, Ginza Industries is using

advanced technology so there are many different machines is there in the firm. Training

is given to the worker that how machine is operated.



JOB ANALYSIS = JOB DESCRIPTION+JOB SPECIFICATION

Promotion And Transfer.

Promotion:

If the employee benefits the firm with higher and better performance then he is promoted

to a better position in the organization hierarchy e.g. worker may be promoted to the post

of supervisor, which would not only increase his status but also authority and pay scale.

This helps the employees to work harder and perform better in order to get a promotion.

This keeps competition among the employees and in order to achieve their targets.

Transfer:

K. Ashwathapa defines transfer as “a transfer involves a change in the job of an employee

without a change in responsibility or remuneration.”

There are two types of transfers followed by the company:

(1) INTRA:

Under this transfers are done internally among the different businesses run by

Ginza Industries, such as from one unit to another.

(2) INTERNAL:



Here, the transfers are done between its plants such as from quality supervisor to

material supervisor, etc.

Reasons Of Transfer.

Requirement:-

The company makes transfers if there is any requirement from one business to

another or one plant to another.

Employee’s Need:-

If the employee approaches, the management for transfer then they are shifted as per

the feasibility.

Performance Appraisal.

Aparty from given training, selection and promotion to the employees, it is required

that he should be evaluated for his performance.it is also described as a merit ranking

in which individual is ranked as better or worse in comparison to others. Performance

appraisal is the part of all other staffing process, like recruitment, selection placement

and induction. It is considered to be the most significanttool for an organization. It is

highly useful in making decisions regarding personal aspects such as promotions.

“Performance appraisal is the systematic evaluation of the individual with respects to

his or her performance on the job and his or her potential for development.”



The company does not follow the process of preformance appraisal on a large scale,

but managers do have interactions with the employees regarding their performance in

the given time. These few interactions keep the employees motivated and help them

perform better.The performance of the employees are checked and noted, so that

difficulties are sorted out.

In Ginza Industries, performance appraisal is done yearly. So as to motivate employees and to guide them to put right amount of effort at the right place

Wages And Salary Structure.

Employee compensation is a vital part of human resource management. Wages,

salaries and other form of employee compensation constitute a very large component

of operating costs. One of the biggest factors affecting industrial relation is the salary

or wage the compensation an employee receives for a fair day’s of work. No

organization can expect to attract and retain qualified and motivated employees

unless it pays them a fair compensation. Employee compensation can be classified

into two categories:

1. Basic or primary compensation (basic pay)

2. Supplementary compensation (incentive and variable payment)

Methods of Wage Payment:

There are two types of wage system. They are as follows:

1. Time wage system

2. Piece wage system



In Ginza Industries both methods are adopted. For paying the salary of lower level of

worker, time wage system is used. They are paid on daily wage basis according to

their attendence records. The minimum wage is rs 100/day for any worker in the

organization.

For the employees involved in collection of grey and dispatching of final goods to the

party, piece wage system is adopted. Their wage is calculated according to the metres

of grey they collect from the party and again dispatch the final goods.

For higher level of employees fixed salary is given at the end of the month or within

the first week of fore coming month.

It is to be said that for all the employees wages and salary is at the end of the month

only perspective of level or method of wage payment. But the calculation of wages

made on the basis of method of payment adopted.

Employee Relation And Welfare.

Lobour is the basic power to run a business. Without the help and mutual

understanding either of the management and labour cannot perform. In any

production unit, the labourersdo work and the management ensures that the labourers

are provided with the congenial atmosphere to work. It maintains healthy relationship

with its employees and the smployees are also made to understand that they are

working not for themselves but for the family. All the employees are treated like a

family member and the employees also keep aside their personal gains and work for

the betterment of the organization by devoting their mind fully towards the work that

they have been assigned.

The employees have essay access to the management and they are free to draw the

attention of the management towards any of their grievances.



In spite of all the precautions taken by the management to maintain healthy

relationships with the labourers there are few cases in which labourers arenegatively

motivated by trade union of the industries. These union leaders then approach the

company for settlement, etc.but these sorts of cases are rare.

Ginza Industries had given the welfare policy to the member of origination and their

workers. Welfare policy indicates welfare and gives benefit according to the situation.

It includes the INSURANCE POLICY ,leaving, mediclaim, bonus etc.

Insurance.:-

The company pays the insurance premium of 100000/- per year for whole staff

member.

Leaving:-

The company also permits 12 days leaves in a year to each worker and if the worker

have any difficulty then it will permit the extra leave. Otherwise the company will cut

the salary.

Mediclaim:-

The company takes the whole responsibility of paying medical expenses if the worker

is injured during working hours.

Bonus:-

The company declare bonus on DIWALI and the increment of salary is about 5%. It

declares bonus to the top management a full month salary as a bonus.

Abseentism Rate.

The quantitative data cannot be determined but the rate of absenteeism is very high in

this industry

Because the workers can get an easy job in any other industry and also at a marginal

difference in the salary so they have the power to choose the industry as per their



convenience and they are also not abided by any law or contract so they are free to do

the job in any industry they like so we can’t measure any exact rate of absenteeism.

But the rate of supervisors is low as compared to workers.

Employee Turnover.

As in our company “Ginza Industries” these criteria cannot be fulfilled so

it is not included in our project report. This is authenticated by our

manager below.

Finance Department



Analysis OF Financial Statement OF Ginza Industry

Ternd Analysis

The trend analysis is a technique of studying several financial statements over a series of

years. In this analysis the trend percentages are calculated for each item by taking the

figure of that item for the base year taken as

100. Generally the first year is taken as a base year. The analyst is able to see the trend of

figures, whether moving upward or downward.

In brief, the procedure for calculating trends is as:

– One year is taken as a base year which is generally is the first year or last year.

– Trend percentages are calculated in relation to base year .



TREND PERCENTAGE ANALYSIS OF BALANCE SHEET

2008–2009

2009–2010

2010–2011

2009–

2010

(%)

2010–

2011

(%)Assets:-Current assets

Cash7,696,254

.6314,428,43

5.9623,256,85

1.15187.47

161.19

Debtors214,344,4

14.38257,999,2

05.38316,171,3

98.93120.37

122.55

Stock439,489,5

63444,238,7

25.00454,908,8

77.00101.08

102.4

Other current assets

27,037,576.41

39,412,726.84 −

145.77 −

Loans and

advances

5,946,615.49

9,110,522.79

123,569,898.88

153.20

135.63



Total current assets

694,514,423.91

765,189,615.97

917,907,025.96

110.17

119.96

Fixed assets

1,589,068,317.84

1,626,997,281.76

1,827,875,475.94

102.39

112.35

−Depreciation

502,868,542.60

622,509,428.81

729,613,739.02

123.79

117.21

Net block

1,086,199,775.60

1,004,487,852.92

1,098,261,736.02

92.48

109.34

Total assets

1,780,714,199.51

1,769,677,468.92

2,016,168,761.98

99.38

113.93

Liabilities

Current liabilitie

s97,046,49

5.84121,470,9

06.47252,474,1

70.61125.17

207.85

Provisions

22,098,000

22,823,000.00

25,555,000.00

103.28

111.97

Total current

119,144,495.84

144,293,906.47

278,029,170.61

121.11

192.68

Liabilities

Long term

funds:-Equity share

capital88,831,06

088,831,06

0.0088,831,06

0.00100.00

100.00

Securities

premium

60,639,432.22

45,730,822.83

79,399,248.83

75.41

173.62

Reserves

375,151,517.30

418,571,378.96

544,461,975.09

111.57

130.08

Total524,622,0

09.52553,133,2

61.79712,692,2

83.92105.43

128.85



Secured loans

1,136,947,694.15

1,064,750,300.66

962,992,414.45

93.64

90.44

Unsecured

loans 0.007,500,000

.0062,454,89

3.00Total

liabilities

1,780,714,199.51

1,769,677,468.92

2,016,168,761.98

99.38

113.93

Interpretation: After examining the above mentioned statement of trend

percentage the following items are made clear:

There is increase in current assets and current liabilities are also

increasing but more than current assets. The trend percent of current

assets was increased by 9.79 % from year 2010 to 2011.

The increase in fixed assets is financed by share capital. The fixed

assets were increased by 9.96 %. Thus the advantage of trading on

equity has been taken.

On increasing fixed assets depreciation also increasing.

Trend Percentage Analysis OF Profit And Loss.

YEAR 2008 - 2009 2009 - 2010 2010 - 20112010(

%)2011(

%)

Sales1,278,592,11

9.691,588,104,99

6.851,907,927,81

8.75124.2

0120.1

4gross profit 245,964,798

336,734,429.63

389,144,347.32 136.9

115.56

operating expenses

114,565,222.51

78,318,926.73

92,298,000.83 68.36

117.56

net operating

131,399,575.49

25,841,550.29

296,846,346.49

19.66 148.71



profit(G.P - O.P)

(ADD)other

expenses 4,347,381.85 5,351,118.73 1,699,305.43123.0

9 31.76(MINUS)o

ther expenses

112,053,420.25

142,466,527.59

153,620,816.70

127.14

107.40

NPBT 23,693,537121,300,094.

04145,524,835.

22511.9

5119.9

7(MINUS)t

ax 1,125,000.00 1,725,000.00 7,383,122.00153.3

3428.0

1

NPAT22,568,537.0

9119,575,094.

04138,141,713.

22529.8

3115.5

2

Interpretation:

In this year there is increase in sales as well as profit.

The figure of 2005 when compared with 2004 reveals that the sales have come

down by 4.6 %. However, the gross profit has come down by 21.34 %.

The operating expenses was increased therefore net operating profit was also

increased.

Common Size Financial Statement .

Differences in firm size may confound cross sectional and time series analyses.

To overcome this problem, common size statements are used.

A common size balance sheet expresses each item on the balance sheet as a

percentage of total assets.



A common size income statement expresses each income statement category as a

percentage of total sales revenues

YEAR2008 - 2009

2008-

2009(%)

2009 - 2010

2009 -

2010(%)

2010 - 2011

2010 -

2011(%)

Sales1,278,592,

119.69 1001,588,104,

996.85 1001,907,927,

818.75 100

gross profit

245,964,798 19.23

336,734,429.63 21.2

389,144,347.32 20.39

operating expenses

114,565,222.51 8.96

78,318,926.73 4.93

92,298,000.83 4.83

net operating

profit131,399,57

5. 49 10.2725,841,550

.29 0.01296,846,34

6.49 15.55

(G.P - O.P)

(ADD)other

expenses4,347,381.

85 0.345,351,118.

73 0.331,699,305.

43 0.08

(MINUS)other

expenses112,053,42

0.25 8.76142,466,52

7.59 8.97153,620,81

6.70 8.05

NPBT 23,693,537 1.85121,300,09

4.04 7.63145,524,83

5.22 7.62



(MINUS)tax

1,125,000.00 0.08

1,725,000.00 0.1

7,383,122.00 0.38

NPAT22,568,537

.09 1.76119,575,09

4.04 7.52138,141,71

3.22 7.24

Interpretation:

–The sale and gross profit have increased in comparative figures in

2009-2010 as compared to 2008-2009. But the percentage of gross

profit to sales has gone down in 2010-2011.

Operating expenses have gone down by 4.03% from 2008-2009 to 2009-

2010 and it almost remained same in 2010-2011 in percentage.

Net profit have increased from 2008-2009 to 2009-2010 by 5.67 % and

almost remained same in 2010-2011 in percentage.

COMMON SIZE STATEMENT OF BALANCE SHEET

2009 % 2010 % 2011 %

Assets:-Current assets

Cash7,696,254.6

30.43

14,428,435.96

0.81

23,256,851.15

1.15



Debtors214,344,41

4.3812.04

257,999,205.38

14.57

316,171,398.93

15.68

Stock439,489,56

324.68

444,238,725.00

25.1

454,908,877.00

22.56

Other current assets

27,037,576.41

1.52

39,412,726.84

2.22 − −

Loans and

advances5,946,615.4

90.33

9,110,522.79

0.51

123,569,898.88

6.12

Total current assets

694,514,423.91 39

765,189,615.97

43.27

917,907,025.96

45.52

Fixed assets

1,589,068,317.84

89.24

1,626,997,281.76

91.93

1,827,875,475.94

90.66

−Depreciation

502,868,542.60

28.24

622,509,428.81

35.17

729,613,739.02

36.18

Net block1,086,199,7

75.6060.99

1,004,487,852.92

56.76

1,098,261,736.02

54.47

Total assets

1,780,714,199.51 100

1,769,677,468.92 100

2,016,168,761.98 100

Liabilities

Current liabilities

97,046,495.84

5.45

121,470,906.47

6.86

252,474,170.61

12.52

Provisions 22,098,000

1.24

22,823,000.00

1.28

25,555,000.00

1.26

Total current

liabilities119,144,49

5.846.69

144,293,906.47

8.15

278,029,170.61

13.78

Long term

funds:-Equity share

capital 88,831,060 3.488,831,060.

005.01

88,831,060.00 4.4

Securities Premium

60,639,432.22

4.99

45,730,822.83

2.58

79,399,248.83

3.93



Reserves375,151,51

7.3021.06

418,571,378.96

23.65

544,461,975.09 27

Total524,622,00

9.5229.46

553,133,261.79

31.25

712,692,283.92

35.34

Secured loans

1,136,947,694.15

63.85

1,064,750,300.66

60.16

962,992,414.45

47.76

Unsecured loans 0.00 0

7,500,000.00

0.42

62,454,893.00

3.09

Total liabilities

1,780,714,199.51 100

1,769,677,468.92 100

2,016,168,761.98 100

Interpretation:

The company is not suffering from shortage of working capital. The

Percentage of current liabilities is less than the percentage of current assets.

A close look at the balance sheet shows that investments in fixed asset have been

increasing.

Share cap i ta l f igure remained cons tan t however the i r %age to

ne t wor th has increased from 3.4 % to 4.4 %. Some amount of the

secured loans has been paid off. Reserves of company was increased came

21.06 % to 27 % from the year 2009 to 2011.

Receivable management

MONITORING RECEIVABLES :



a. Efficient billing system:

Billing is necessary. Billing represents a fundamental component of healthy customer

relations; it serves as a reminder to the customer of his or her responsibility and

obligation. Here India Motor Parts & Accessories Limited mailing invoices on a timely

basis promotes quicker payment. According to the company, Customers should be billed

at least once a month for their purchases. Bimonthly billing encourages even faster

payment. A detailed billing statement presented in a simple format provides the customer

with key information that can be easily understood. Include the following, if applicable,

on a billing statement: product purchased, quantity, color, description, date order

received, date order completed, billing date, billing rate, time spent on the job, job

specifications, prior balance, prior payments and amount due. An enclosed envelope is

customer friendly and prompts return payment.

b. Aging of receivables method:

The aging of accounts receivable directs management's attention to accounts that are

slow to pay. It is also useful in determining the balance amount needed in the account

Allowance for Doubtful Accounts.

The aging of accounts receivable report is typically generated by sorting unpaid sales

invoices in the subsidiary ledger—first by customer and then by the date of the sales

invoices. If a company sells merchandise (or provides services) and allows customers to

pay 60 days later, this report will indicate how much of its accounts receivable is past

due.

c. Objectives of maintaining receivables:

The main objectives of credit sales and maintaining receivables are as under:

1. To increase the sales: It is quite natural that the policy of credit sales attracts

more customers for purchasing. Those who do not have money at present for



purchasing are also induced to purchase with the expectation of making payment

from its sales proceeds. In short, credit sales increases sales volume.

2. Competition: In order to survive in competition every enterprise has to adopt

the strategy of following the footsteps of competitors. If a company ignoring the

liberal credit policy of competitors insists on cash sales, it cannot survive long.

3. Increase in profit: The ultimate aim of credit sales is to increase profit by

increasing sales volume through proper credit policy. Profit can be optimized by

adopting optimum credit policy. Here credit sales are accepted as a marketing tool

to boost up sales and profit.

d. Terms of payments:

1. Cash terms : It means the condition of making payment against delivery of

goods or payment of price in advance. Generally cash payment is insisted upon

when the goods are to be manufactured as per order the doubtful credit worthiness

of particular customers also inspires the company for cash terms.

2. Open credit policy: It is also known as open account policy. In open credit

policy seller and the buyer come to agreement about credit period, cash discount,

period of cash discount, etc. According to these agreement goods is sold to the

buyer in required quantity as and when needed by the customers. Both parties are

expected to abide by the credit term.

3. Consignment : In some cases goods is sold through del credor. The owner of

the goods sends it to the del credor as consignment. The del credor does not

receives the ownership rights. When it is sold he pays a price after deducting his

commission. Unsold goods are returned to its real owner.



4. Bills of exchange : In this method the seller sells the goods, prepares bill of

exchange, the buyer accepts it and sends it back to the seller. For the seller it is

bills receivable and for the buyer it is bill payable.

The use of bill of exchange has the following three advantages:

A documentary proof of the debt of the buyer is created.

Cost of credit is reduced to some extent.

Negotiable instruments come into existence.

5. Letter of credit : In case of import from foreign country the exporter insists on

letter of credit issued by the banker of importer. Letter of credit is certificate

regarding the credit standing of the importer issued by its banker on the basis of

the certificate the exporter dispatches the goods to the importer. Documents of

title to goods are sent to the bank.

6.

Valuation and Pricing Of Stock.

The Company use FiFo (First In First Out) method for stock Valuation since the

company started and the company follows it regularly without changing the

method to LIFO. Company uses this method because of the products which the

company deals like fabrics

Introduction To Working Capital.

Working capital management is concerned with the problems arise in



Attempting to manage the current assets, the current liabilities and the inter relationship

that exist between them. The term current assets refers to those

Assets which in ordinary course of business can be, or, will be, turned in to cash within

one year without undergoing a diminution in value and without disrupting the operation

of the firm. The major current assets are cash,

Marketable securities account receivable and inventory. Current liabilities ware those

liabilities which intended at there inception to be paid in ordinary course of business,

within a year, out of the current assets or earnings of the concern. The basic current

liabilities are account payable, bill payable, bank over-draft, and outstanding expenses.

The goal of working capital management is to manage the firm’s current assets and

current liabilities in such way that the satisfactory level of working capital is mentioned.

The current should be large enough to cover its current liabilities. in order to ensure a

reasonable margin of the safety.

Definition:-

1. According to Guttmann & Douglas-

“Excess of current assets over current liabilities”

2. According to Park & Glad son -

“The excess of current assets of a business (i.e. cash, accounts

Receivables, inventories) over current items owned to employees and others

(Such as salaries & wages payable, accounts payable, taxes owned to

Government)”

Need Of Working Capital Management.



The need for working capital gross or current assets cannot be over emphasized.

As already observed, the objective of financial decision making is to maximize the

shareholders wealth. To achieve this, it is necessary to generate sufficient

Profits can be earned will naturally depend upon the magnitude of the sales

Among other things but sales cannot convert into cash. There is a need for

Working capital in the form of current assets to deal with the problem arising

Out of lack of immediate realization of cash against goods sold. Therefore

Sufficient working capital is necessary to sustain sales activity.

Then the company has to spend some amount for labor and factory overhead to convert

the raw material in work in progress, and ultimately finished goods. These finished goods

convert in to sales on credit basis in the form of sundry debtors. Sundry debtors are

converting into cash after expiry of credit period. Thus some amount of cash is blocked in

raw materials, WIP, finished goods, and sundry debtors and day to day cash

requirements. However some part of current assets may be financed by the current

liabilities also. The amount required to be invested in this current assets is always higher

than the funds available from current liabilities. This is the precise reason why the needs

for working capital arise

Gross working capital and Net working capital



There are two concepts of working capital management

1. Gross working capital

Gross working capital refers to the firm’s investment I current assets. Current assets are

the assets which can be convert in to cash within year includes cash, short term securities,

debtors, bills receivable and inventory.

2. Net working capital

Net working capital refers to the difference between current assets and current liabilities.

Current liabilities are those claims of outsiders which are expected to mature for payment

within an accounting year and include creditors, bills payable and outstanding expenses.

Net working capital can be positive or

Type of working capital

The operating cycle creates the need for current assets (working capital).

However the need does not come to an end after the cycle is completed to

Explain this continuing need of current assets a destination should be drawn Between

permanent and temporary working capital.

1) Permanent working capital

The need for current assets arises, as already observed, because of the cash Cycle. To

carry on business certain minimum level of working capital is

Necessary on continues and uninterrupted basis. For all practical purpose, this

Requirement will have to be met permanent as with other fixed assets. This



Requirement refers to as permanent or fixed working capital

2) Temporary working capital

Any amount over and above the permanent level of working capital is Temporary,

fluctuating or variable, working capital. This portion of the required working capital is

needed to meet fluctuation in demand consequent upon changes in production and sales

as result of seasonal changes

(A)ESTIMATION OFCURRENT ASSETS:

2008-2009 2009-2010 2010-2011

(a)Cash and bank balance 7,696,254.63 14,428,435.96 23,256,851.15

(b)Inventories 439,489,563.00

444,238,725.00 454,908,877.00

(c)Sundry debtors 214,344,414.38

257,999,205.35 316,171,398.93

(d)Other current assets 27,037,576.41 39,412,726.84 _

(e)Loans and advances 5,946,615.49 9,110,522.79 123,569,898.88

Total current assets 694,514,423.91

765,189,615.97 917,907,025.96

(B)ESTIMATION OF CURRENT LIABILITIES:

_ _ _

(a)Current liabilities 97,046,495.84 121,470,906.47 252,474,170.61

(b)Provisions 22,098,000.00 22,823,000.00 25,555,000.00

Total current liabilities 119,144,495.84

144,293,906.47 278,029,170.61



NET WORKING CAPITAL MANAGEMENT(A-B)

575,369,928.07

6,208,95709.5 639,877,855.35

RATIO ANALYSIS

RATIO ANALYSIS-OVERVIEW

Ratios:

1. Provide a method of standardization

2. More important - provide a profile of firm’s economic characteristics and Competitive

strategies.

• Although extremely valuable as analytical tools, financial ratios also have Limitations.

They can serve as screening devices, indicate areas of

Potential strength or weakness, and reveal matters that need further Investigation.

• Should be used in combinations with other elements of financial Analysis.

• There is no one definitive set of key ratios; there is no uniform definition

For all ratios; and there is no standard that should be met for each ratio.

• There are no "rules of thumb" that apply to the interpretation of financial Ratios.

The main object of all the business concerns is to earn profit. Profit is the measurement of

the efficiency of the business. Equity shareholders of the company are mainly interested

in the profit ability of the company. Profitability ratios include the following:

1. Gross profit ratio.



2. Net profit ratio.

3. Operating ratio.

4. Expense ratio.

1. Gross profit ratio:

It is a ratio expressing relationship between gross profits earned to net sales.

Gross Profit

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

Net Sales

YEAR Gross profit ratio = Gross profit/ Net sales × 100

%

2009 245,964,798.80 ÷ 1,278,592,119.69 × 100 19.23

2010 336,734,429.63 ÷ 1,588,104,996.85 × 100 21.20

2011 389,144,347.32 ÷ 1,907,927,818.75 × 100 20.39



2009 2010 201118

18.5

19

19.5

20

20.5

21

21.5

percentage

percentage

Interpretation: here we can see that the gross profit ratio in 2010 increased by 1.97%.

It shows the efficiency of the firm but in 2011 the gross profit ratio is decreased by 0.81%

so we can conclude that in this year the company lost its ability of controlling the cost of

its inventory and manufacturing products.



1. Net profit ratio:

The ratio is valuable for the purpose of ascertaining the overall profitability if business and shows the operating efficiency of the business.

Net Profit

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

Net Sales



200939%

20108%

201153%

Interpretation : In the year 2009, a company is having net loss a 5.69 % that means

company is unable to pay all the expenses of the firm but in the next year increasing trend

of net profit shows that it is able to pay all the expenses of the firm including taxes,

interest and depreciation.


YEAR Net profit ratio = Net profit/ Net sales × 100 %

2009 (72,795,251.75) ÷ 1,278,592,119.69 × 100 (5.69)

2010 17,907,724.38 ÷ 1,588,104,996.85 × 100 1.13

2011 146,521,559.86 ÷ 1,907,927,818.75 × 100 7.68


3. Operating ratio:

It is a ratio showing relationship between cost of goods sold plus operating expenses and

net sales. It shows the overall efficiency of the firm.

cost of good sold + Operating Expenses

Operating Ratio = ---------------------------------------------------- * 100

sales revenue

YEAR Operating ratio = COGS + Operating Expenses / Net sales × 100

%

2009 [{1,032,627,320.89 + 226,618,642.76} ÷ 1,278,592,119.69] × 100

98.48



2010 [{1,251,370,567.22 + 188,074,685.52} ÷ 1,588,104,996] × 100

90.63

2009 201086

88

90

92

94

96

98

100

percentage

percentage

Interpretation: The operating ratio is decrease by 7.85 %. It shows that a company has

good overall operating efficiency incorporating all the expenses of ordinary daily

business activity so it is more profitable.



5. Expense ratio:

a. Administrative Expense Ratio

For the purpose of ascertaining relationship between operating expense and net

sales, expense ratio are computed.

YEAR Administrative Expense Ratio = Administrative Expenses / Net Sales × 100

%

2008 33,542,824.32 ÷ 1,097,348,091.96 × 100 3.06

2009 80,495,996.48 ÷ 1,278,592,119.69 × 100 62.95

2010 51,053,332.30 ÷ 1,588,104,996.85 × 100 3.21



2008 2009 20100

10

20

30

40

50

60

70

percentage

percentage

b.Selling Expense Ratio.

YEAR Selling Expense Ratio = Selling Expenses / Net Sales × 100

%

2008 18,399,924.71 ÷ 1,097,348,091.96 × 100 1.67

2009 34,069,226.03 ÷ 1,278,592,119.69 × 100 2.65

2010 27,285,594.43 ÷ 1,588,104,996.85 × 100 1.71



2008 2009 20100

0.5

1

1.5

2

2.5

3

percentage

percentage

c.Financial Expense Ratio .

YEAR Financial Expense Ratio = Financial Expenses / Net Sales × 100

%

2008 82,356,448.66 ÷ 1,097,348,096 × 100 7.50

2009 92,329,279.70 ÷ 1,278,592,119.69 × 100 7.22

2010 109,755,758.79 ÷ 1,588,104,996.85 × 100 6.91



2011 92,298,000 ÷ 1,907,927,818.75 ×100 4.8

2008 2009 2010 20110

1

2

3

4

5

6

7

8

percentage

percentage

(B) Liquidity ratio:

1. Current ratio:

Creditors extending credit to its customer or making a short-term bank

loan are interested in more than a company’s leverage. They want to know

whether the customer will be able to lay its hand on the cash to repay.

The current ratio is a financial ratio that measures whether or not a firm has enough

resources to pay its debts over the next 12 months.

It is important to note that a very high ratio of current assets to current liabilities may be

indicative of slack management practices, as it might signal excessive inventories for the

current requirement & poor credit management in terms of overextended accounts

receivable. At the same time, the firm may not be making full use of its current

borrowing capacity.Although there is no hard & fast rule, conventionally, a current ratio



of 2:1 isconsidered satisfactory. The logical underlying the conventional rule is that even

with a drop – out of 50% in the value of current assets, a firm can meet its obligations.

current assets

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

curent liabilities

YEAR Current Ratio = Current Assets / Current Liabilities

2009 694,514,423.91 / 119,144,495.84 5.83

2010 765,189,615.97 / 144,293,906.47 5.30

2011 917,907,025.96 / 278,029,170.61 3.30

2009 2010 20110

1

2

3

4

5

6

7

percentage

percentage



Interpretation: Current ratio indicates the working capital position. The

satisfactory ratio is 2:1 but company is showing good working capital position as

their current ratio in 2009 and 2010 approx. 5:1. In 2011 the ratio is 3.30:1

showing less ratio then previous 2 years company should take corrective action to

increase it.

2. Liquid ratio:

A variant of current ratio is the liquid ratio or quick ratio which is designed to

show the amount of cash available to meet the immediate payments. It indicates

the liquidity position of the firm

Liquidity Assets

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

Liquid Liabilities

YEAR Liquid Ratio = Liquid Assets / Liquid Liabilities %



2009 255,024,860.91 / 119,144,495.84 2.14

2010 320950890.97 / 144,293,906.47 2.22

2011 462,998,148.96 / 278,029,170.61 1.67

2009 2010 20110

0.5

1

1.5

2

2.5

percentage

percentage

Interpretation: The satisfactory ratio is 1:1. According to this we can conclude

that GINZA industry is having very good liquidity position.



(1) Proprietary 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

YEAR Proprietary Ratio = Proprietors Funds / Total Real Assets %

2009 463,982,577.30 ÷ 1,780,714,199.51 × 100 26.05

2010 507,402,438.96 ÷ 1769677468.92 × 100 28.67



2011 633,293,035.09 ÷ 2,016,168,161.98 × 100 31.41

2009 2010 20110

5

10

15

20

25

30

35

percentage

percentage

Interpretation: The increasing rate of proprietary ratio shows that the financial

position of the GINZA industry is stronger, as it signifies that the proprietors have

provided larger funds to purchase the assets.



( 2) Debt-Equity ratios:

This ratio shows the proportion of external and internal equities i.e. proportion of

funds provides by long term creditors and that provided by share holders.

YEAR Debt-Equity Ratio = Long term Liabilities / Owners funds × 100 %

2009 ₋ ₋

2010 7,500,000 ÷ 507,402,438.96 × 100 1.48

2011 62,454,893 ÷ 633,293,035.09 × 100 9.86

2010 20110

2

4

6

8

10

12

percentage -

percentage -



Interpretation: An increasing ratio indicates that outside creditors have a larger claim

than the owners of the business.

(2) Long term funds to fixed assets ratio :

Normally, the fixed assets f business must be purchased out of fixed capital

only, which includes share capital, reserves and long term liabilities. This

ratio, therefore, shows the relationship between fixed capital and fixed assets

the ratio must be 1:1 or more i.e. the fixed capital must be more than fixed

assets or must at least be equal to fixed assets.

YEAR Long term funds To Fixed Assets = Long Term funds / Fixed Assets × 100

%

2009 1,136,947,694.15 ÷ 1,589,068,317.84 × 100 71.50

2010 1,072,250,300.66 ÷ 1,626,997,281.76 × 100 65.90

2011 1,025,447,307.45 ÷ 1,827,875,475.94 × 100 56.10



2009 2010 20110

10

20

30

40

50

60

70

80

percentage

percentage

Interpretation: A decreasing rate shows that fixed capital is also decreasing in

comparison to fixed assets. The reason behind this decrease rate is that company is using

short term forms in purchasing assets.



(4) Return on capital employed:

It is the index of the profitability if the business and its obtained by comparing net profit

with capital employed. The term employed includes share capital, reserves and long term

loans.

YEAR

Return On capital Employed = Net Profit(Before Interest and Tax) / Capital Employed × 100

%

2009 43,417,728.50 ÷ 463,982,577.30 × 100 9.36

2010 142,578,418.17 ÷ 507,402,438.96 × 100 28.09

2011 269,239,714.38 ÷ 633,293,035.09 × 100 42.51



2009 2010 20110

5

10

15

20

25

30

35

40

45

percentage

percentage

(5)Return on shareholders’:

It shows what percent of profit is earned on the capital invested by ordinary shareholders.

This ratio is an indicator of the earning capicity of the capital employed in the

business. This ratio reflects the overall efficiency with which capital is used.

Return on Shareholders’ Funds = Net Profit / Shareholders’ Funds × 100

YEAR

Return On Shareholders’ Funds = Net Profit / Shareholders’ Funds × 100

%

2009 727,952,51.75 ÷ 463,982,577.30 × 100 15.68

2010 17,907,724.38 ÷ 507,402,438.96 × 100 3.52



2011 146,521,559.86 ÷ 633,293,035.09 × 100 23.13

2009 2010 20110

5

10

15

20

25

15.68

3.52

23.13percentage

percentage

Interpretation: The profitability decreased from 2009 to 2010 by 11.56 % but in 2011 the

shareholders got more return in comparison to 2009.

(C) Activity (turnover):

Activity Ratio:-

These ratios are calculated on the basis of ‘cost of sales’ or ‘sales’, therefore, these ratios

are also called as ’Turnover Ratio’. These ratios indicate how efficiently the capital is

being used to obtain sales; how efficiently the fixed assets are being used to obtain sales;

and how efficiently the working capital and stock is being used to obtain sales.



(1) Inventory turnover ratio:

Inventory turnover ratio indicates the efficiency of the firm in producing and

Selling its products. It is calculated by dividing the cost of goods sold by average

Inventory:

The average inventory is the average of opening and closing balance of

Inventory in a manufacturing company like Ginza inventory of finished goods is

Used to calculate inventory turnover ratio.

Cost of goods sold

Stock Turnover Ratio = --------------------------

average inventory

YEAR Stock Turnover Ratio = Cost Of Goods Sold / Average Stock %

2009 245,964,798.80 ÷ 328,172,722.50 ×100 0.75



2010 336,734,429.63 ÷ 344,971,204 × 100 0.98

2011 389,144,347.32 ÷ 322,260,351 × 100 1.20

2009 2010 20110

0.2

0.4

0.6

0.8

1

1.2

1.4

percentage

percentage

Interpretation:

A higher inventory turnover ratio is better than a lower inventory turnover ratio. A higher

ratio implies good inventory management and an indication of under investment lower

inventory turnover ratio indication of excessive inventory and over investment in

inventory.



(2)Total assets turnover ratio:

The amounts invested in business are invested in all assets jointly and sales are

affected through them to on profit

YEAR Total Assets Turnover = Sales / Total Assets %

2009 1,278,592,119.69 ÷1,780,714,199.51 × 100 71.80

2010 1,588,104,996.85 ÷ 1,769,677,468.92 × 100 89.73

2011 1,907,927,818.75 ÷ 2,016,168,761.98 × 100 94.63



2009 2010 20110

10

20

30

40

50

60

70

80

90

100percentage

percentage

Interpretation: The increasing rate of total assets turnover ratios shows that company has

a capacity to sell more and as such its profitability is more.



Bibliography.

Books.

Marketing Management

Marketing Management By Philip Kotler.

Edition-

Page No’s.

3,298,315-334,471-495,471-484

Human Resource Management.

Human Resource Management text And Cases.

By- K. Aswathappa.

Edition-6th

Page No’s.

11-15,21-23,96-111,123-136,.144-148,170-183,

196-198, 220,247-262.

Site.

http://www.ginzalimited.com/products.htm

http://ginzalimited.tradeindia.com/company-profile.html

http://ginzalimited.tradeindia.com/

http://www.cim.co.uk/resources/understandingmarket/definitionmkting.aspx

Other.

Magazines, Pamphlets, Notes..


http://www.cim.co.uk/resources/understandingmarket/definitionmkting.aspx

http://ginzalimited.tradeindia.com/

http://ginzalimited.tradeindia.com/company-profile.html

http://www.ginzalimited.com/products.htm


Annexure.

4.1 Profit & Loss Account

1-Apr-2009 to 31-Mar-2010

Year ended year ended

31.03.2010 31.03.2009

(Rs.) (Rs.)

Income

Sales 1,588,104,996.85 1,278,592,199.69

Increase\decrease in stock (16,771,656.oo)50,368,619.00

Other income 5,351,118.734,347,381,.85

TOTAL 1.576,684,459.58

1,333,308,120.54

EXPENDITURE

Raw materials 971,430,120.97857,758,010.

Store & spares 16,067,461.86 16,575,045.78

Payments to and provisions for employees 142,466,527.59 109,481,564.47

Power & fuel 82,585,265.1077,578,399.28

Processing , colouring ,& hand printing & cutting charges 22,049,535.70 21,602,870.10



Administrative & other expenses 51,053,332.3055,976,781.74

Selling and distribution expenses 27,265,594.4334,069,226.03

Interest 109,755,758.79112,053,420.25

Depreciation 121,188,203.4692,329.279.70

TOTAL 1,543,861,800.20

1,377,424,597.55

Less: deferred revenue expenditure 4,159,560.004,159,560.00

Profit before taxation & exceptional item 28,663,099.38(48,276,037.01)

Less: exceptional item 10,755,375.0024,591,214.74

Profit before taxation 17,907,724,38(72,795,251.75)

Less: provision for current taxation 725,000.00

Less: provision for fringe benefit tax1,125,000.oo

Less: provision for deferred tax liability (24,363,425.39) (19,690,427.07)

Profit after taxation 41,546,149.77 (54,229,427.68)

Add: items 1,873,711.89

Balance b\f from previous year 312,846,517.30367,076,341.98

Less: income tax payment

Balance carried to balance sheet 356,266,517.30312,846,517.30Basic and diluted earnings per share 4.68

(6.10)



4.2 BALANCE SHEET

1-Apr-2009 to 31-Mar-2010

Sources of funds 31.03.2010 31.03.2009

1.shareholders funds

a)share capital 88,831,060.00 88,831,0 60.00

b)reserves & surplus 418,571,378.96 507,402,438.96 375,151,517.30 463,982,577.30

2.loan funds

a)secured loans 1,064,750,300.66 1,136,947,694.15

b)unsecured loans 7.500,000.00 1,O72,250,300.66 0.00 1,136,947,694.15

3.deferred tax liabilities 57,452,988.5481,816,413.93

TOTAL 1,637,105,728.16 1,682,746,685.30

Application of funds

1.fixed assets

a) gross block 1,626,997,281.76 1,589,068,317.84

b) less: depreciation 622,509,428.81 502,868,542.24

c)net block 1,004,487,852,.95 1,086,199,775.60

d)capital work in progress 2,575,744.00 1,007,063,596.951,086,199,775.60

2. investments 827,300.008,698,300.00

3. current assets , loans

& advances

a)inventories 444,238,725.00 439,489,563.00

b)sundry debtors 257,999,205.38 214,344,414.38



c)cash current assets 14,428,435.96 7,696,254.63

d)other current assets 39,412,726.84 27,638,724.98

e)loans and advances 9,110,522.79 5,345,448.92

765,189,615.97 694,514,423.91

less: current liabilities

& provisions

Current liabilities 121,470,906.47 97,046,495.84

Provisions 22,823,000.00 22,098,000.00

144,293,906.47 119,144,495.84

Net current assets 620,895,709.50575,369,928.07

4. Miscellaneous

expenditure

(to the extent not

Written Off or adjusted)

Deferred revenue expenditure 8,319,121.7112,478,681.71

TOTAL 1,637,105,728.16 1,682,746,685.38



4.3 Profit & Loss Account

1-Apr-2010 to 31-Mar-2011

Year ended year ended

31.03.2011 31.03.2010

(Rs.) (Rs.)

Income

Sales 1,90,79,27,818.75 1,33,22,35,082.85

Increase\decrease in stock (2,86,50,050.00)(1,67,71,656.00)

Other income 16,99,305.4353,51,118.73

TOTAL 1,880,977,074.18

1,32,08,14,545.58

EXPENDITURE

Raw materials 1,05,49,15,820.2371,55,60,206.97

Manufacturing & other expenses 43,52,17,600.45 34,56,47,276.98

Interest 9,22,98,000.8310,97,55,758.79

Depreciation 12,16,03,939.1212,11,88,203.46



TOTAL 1,70,40,35,360.63

1,29,21,51,446.20

Profit before taxation & exceptional item 17,69,41,713.552,86,63,099.38

Less: exceptional item 4,51,61,168.691,07,55,375.00

Add: excess dep provided in earlier years written back 1,44,76,014.00 15,47,316.90

Add: prior period items 2,65,001.00 3,26,394.99

Profit before taxation 14,65,21,559.861,97,81,436.27

Less: provision for taxation 2,37,05,000.007,25,000.00

Less: provision for deferred tax liability 2,73,83,122.00 (2,43,63,425.39)

: income tax for earlier years 10,35,213,73 0.00

Add: MAT credit entitlement 3,14,92,372.00 0.00

Profit after taxation 12,58,90,596.13 4,34,19,861.66

Balance b\f from previous year 35,62,66,378.96 31,28,46,378,96

Balance carried to balance sheet 48,21,56,975,0935,62,66,378.96

Basic and diluted earnings per share 14.17 4.89



4.4 BALANCE SHEET

1-Apr-2010 to 31-Mar-2011

Sources of funds 31.03.2011 31.03.2010

1.shareholders funds

a)share capital 88,831,060.00 88,831,0 60.00

b)reserves & surplus 54,44,61,975.09 63,32,93,035.09 41,85,71,378.96 50,74,02,438.96

2.loan funds

a)secured loans 96,29,92,414.45 1,06,47,50,300.66

b)unsecured loans 6,24,54,893.00 1,02,54,47,307.45 75,00,000.00 1,07,22,50,300.66

3.deferred tax liabilities 8,48,36,110.545,74,52,988.54

TOTAL 1,74,35,76,453.08 1,63,71,05,728.16

Application of funds

1.fixed assets

a) gross block 1,82,78,75,475.94 1,62,69,97,281.76

b) less: depreciation 72,96,13,739.92 62,25,09,428.81

c) net block 1,09,82,61,736.02 1,00,44,87,852.95

d)capital work in progress 4,50,000.00 1,09,87,11,736.02 25,75,744.001,00,70,63,596.95

2. investments 8,27,300.008,27,300.00



3. current assets , loans

& advances

a) Inventories 45, 49, 08,877.00 44,42,38,725.00

b) Sundry debtors 31, 61, 71,398.93 25,79,99,205.38

c) Cash & bank balance 2,32,56,851.15 1,44,28,435,96

d) loans and advances 12,35,69,898.88 4,85,23,249.63

91,79,07,025.96 76,51,89,615.97

Less: current liabilities

& provisions

Current liabilities 252,474,170.61 12,14,70,906.47

Provisions 25,555,000.00 2,28,23,000.00

27,80,29,170.61 14,42,93,906.97

Net current assets 63,98,77,855.3562,08,95,709.50

4. Miscellaneous

expenditure

(to the extent not

Written Off or adjusted)

Deferred revenue expenditure 41,59,561,7183,19,121.71

TOTAL 1,74,35,76,435.08 1,63,71,05,728.16


Project On Ginza Industries Surat

Documents

Transcript of Project On Ginza Industries Surat