Professional Documents
Culture Documents
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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. Todays 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 fasttrack textile export growth, and ambitious goals have created several investment opportunities in India.
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.
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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. Indias 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.
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1.3 EVOLUTION:
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.
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.
Where India could increase their share from present 3% to 8% in US Garment market.
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.
people.
infrastructure is required.
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Carolina Herrera Oscar de la Rental Calvin Klein Donna Karan Liz Claiborne Nicole Miller
Pantaloon Retail India Ltd Shoppers Stop Tata Trent Globus stores Pvt Ltd Pirmayd Retail Ltd Arvind Brands Ltd Provogue India Ltd The Raymond Group
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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.
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, Indias Garment industry employed 35 million people
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.
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Company Profile.
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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 customers satisfaction It has various product ranges. Ginzas 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.
hundreds of hues and designs. Each line of product from Ginza is an outcome of "Excellent Craftsmanship and innovation".
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 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
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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
Executive director
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Ginza Industries Ltd. 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.
is to expand its roots in the global market and domestic market as well.
2.4 ACHIEVEMENTS:
each of their processes so that the outcome is perfect. Due to this Ginza secured ISO 9000 certification in 2008.
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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
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Head Office:
Kimatrai Building, 2nd Floor, 77/79 Road, Marine Lines, Mumbai: 400 002 Email: ginza@vsnl.com Website: www.ginzalimited.com Maharishi Karve
Surat Branch:
Plot No. A-15, 16, 17 Sardar Patel Road No.2, Udhana, Surat
Plant:
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Managing director
General Manager.
finance
production
manager
manager
Assistant manager
assistant manager
Department In charge
HR officer
Clerk
Worker
Purchase officer
sales officer
advertisement manager
sales manager
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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 Womens 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 Womens 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.
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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 Ginzas 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 Indias 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.
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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 Ginzas 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.
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MARKETING DEPARTMENT.
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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
Purchase officer
Sales officer
Sales 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 doesnt face any marketing problem as it products on order basis. GINZA market is widely.
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100% Nylon Raschel Fabrics Raschel Jacquardtronic with Fall Plate Effect Fabrics Fascination Fabrics
100% Cotton Embroidered Gupier Fabrics Fabrics 100% Nylon Net Embroidered Fabric Polyester/Cotton Embroidered Fabrics
Nylon Net/Lurex Embroidery Embroidered Sarees with Fabrics Sequence Work SE 38 Computerized Talam Fabrics
Talam Strolls Talam Suit Dupattas Talam Nylon/Spandex Fabrics Jacquard Fabrics Jacquard Allover Fabrics
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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
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
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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.
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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
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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.
A companys 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.
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Right now in Ginza Industries Ltd, their product with code 82004b is at its maturity stage.
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.
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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.
GINZA INDUSRIES
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Personal discussions, telephone communication and Email. Letters, Prospects, Pamphlets and catalogs. Homepages Sponsoring Exhibitions Direct marketing Public relations
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In Ginza Industries Direct and Personal marketing is done, as they wont advertise themselves at any public platform at large. They personally meet the customer and share the details about the product.
Different Threats :
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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.
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.
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.
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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 Its time gone when the customers were innocent & not so informed of products availability. They were buying what they offered. However, todays 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.
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Production management.
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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.
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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.
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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.
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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.
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Set up under the technical supervision of a renowned overseas domain expert, this unit
Is also available in different size like 18mm, 30mm and 40mm. Lace:
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, BobbinLaces & Fabrics with capacity of 15million meters per annum.
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This facility is built on area of 35000 sq feet and features top of the line equipment from Takeda Mayer, Japan and Come.
Threads:
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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.
Its also available in different type and different size and different color
Under this process the raw materials are heated to give a desire shape.
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.
There are 74 machine .capacity is depends upon the machine, style and ability of the worker.
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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.
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.
In Ginza industry use the equipment areas under Elevators Trolley Industrial vehicles Etc
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.
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
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
Garment presentation
Promotion activity
Oder feeding
Production process
Laces Net fabric Raschel fabric Eye & hook Elastics Leggings Trousers Jackets Casual shirt Dress Kurti Tops Tunics
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Managing director
General Manager
Assistance manager
Senior executive
Executive officer
Accountant
Assistance
Staff
Scope Of HRM.
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Nature of HRM Employee hiring Prospects of HRM Industrial relation Employees maintenance Employee motivation Employee and excutive remuneration
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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.
Selection:
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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.
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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.
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.
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.
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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.
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advanced technology so there are many different machines is there in the firm. Training is given to the worker that how machine is operated.
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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.
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Employees 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.
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1. Basic or primary compensation (basic pay) 2. Supplementary compensation (incentive and variable payment)
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.
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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.
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.:-
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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 cant 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.
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Finance Department
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 .
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20082009 Assets:Current assets Cash Debtors Stock Other current assets Loans and advances Total current assets Fixed assets Deprecia tion Net block Total assets Liabilities Current liabilities Provision s Total current
20092010
20102011
7,696,254.6 14,428,435. 23,256,851. 187. 3 96 15 47 214,344,414 257,999,205 316,171,398 120. .38 .38 .93 37 444,238,725 454,908,877 101. 439,489,563 .00 .00 08 27,037,576. 41 5,946,615.4 9 694,514,423 .91 1,589,068,3 17.84 502,868,542 .60 1,086,199,7 75.60 1,780,714,1 99.51 39,412,726. 145. 84 77 9,110,522.7 123,569,898 153. 9 .88 20 765,189,615 .97 1,626,997,2 81.76 622,509,428 .81 1,004,487,8 52.92 1,769,677,4 68.92 917,907,025 .96 1,827,875,4 75.94 729,613,739 .02 1,098,261,7 36.02 2,016,168,7 61.98 110. 17 102. 39 123. 79 92.4 8 99.3 8
97,046,495. 121,470,906 252,474,170 125. 84 .47 .61 17 22,823,000. 25,555,000. 103. 22,098,000 00 00 28 119,144,495 144,293,906 278,029,170 121. .84 .47 .61 11
88,831,060 60,639,432. 22 375,151,517 .30 524,622,009 .52 1,136,947,6 94.15 0.00 1,780,714,1 99.51
88,831,060. 00 45,730,822. 83 418,571,378 .96 553,133,261 .79 1,064,750,3 00.66 7,500,000.0 0 1,769,677,4 68.92
88,831,060. 00 79,399,248. 83 544,461,975 .09 712,692,283 .92 962,992,414 .45 62,454,893. 00 2,016,168,7 61.98
99.3 8
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.
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5,351,118.73 1,699,305.43 142,466,527. 153,620,816. 59 70 121,300,094. 145,524,835. 04 22 1,725,000.00 7,383,122.00 119,575,094. 138,141,713. 04 22
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.
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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
YEAR
20082009( %)
2009 2010( %)
2010 2011( %)
Sales gross profit operating expenses net operating profit (G.P O.P) (ADD)ot her expenses
100
100
100
21.2
8.96
4.93
4.83
0.01
4,347,381.8 5
0.34
5,351,118.7 3
0.33
1,699,305.4 3
0.08
Page 72
112,053,42 0.25
8.76
8.97
8.05
1.85
7.63
7.62
0.38 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 20092010 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.
Page 73
694,514,423 .91 39 1,589,068,3 89. 17.84 24 502,868,542 28. .60 24 1,086,199,7 60. 75.60 99 1,780,714,1 99.51 100 97,046,495. 84 22,098,000 119,144,495 .84 5.4 5 1.2 4 6.6 9
765,189,615 43. .97 27 1,626,997,2 91. 81.76 93 622,509,428 35. .81 17 1,004,487,8 56. 52.92 76 1,769,677,4 68.92 100 121,470,906 .47 22,823,000. 00 144,293,906 .47
917,907,025 45. .96 52 1,827,875,4 90. 75.94 66 729,613,739 36. .02 18 1,098,261,7 54. 36.02 47 2,016,168,7 61.98 100 12. 52 1.2 6 13. 78
88,831,060
3.4
88,831,060.
5.0
88,831,060.
4.4
Page 74
45,730,822. 2.5 83 8 418,571,378 23. .96 65 553,133,261 31. .79 25 1,064,750,3 60. 00.66 16 7,500,000.0 0.4 0 2 1,769,677,4 68.92 100
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 capital figure remained constant however their %age to n e t w o r t h h a s 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
Page 75
The aging of accounts receivable report is typically generated by sorting unpaid sales invoices in the subsidiary ledgerfirst 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.
Page 76
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
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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.
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.
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
Page 78
Definition:1. According to Guttmann & DouglasExcess 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)
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Gross working capital and Net working capital Navnirman Institute Of Management.
Page 80
Page 81
(A)ESTIMATION OFCURRENT ASSETS: (a)Cash and bank balance (b)Inventories (c)Sundry debtors (d)Other current assets (e)Loans and advances Total current assets (B)ESTIMATION OF CURRENT LIABILITIES: (a)Current liabilities (b)Provisions Total current liabilities NET WORKING CAPITAL MANAGEMENT(A-B)
2008-2009 7,696,254.63
2009-2010 14,428,435.96
2010-2011 23,256,851.15
439,489,563.00 444,238,725.00 454,908,877.00 214,344,414.38 257,999,205.35 316,171,398.93 27,037,576.41 5,946,615.49 39,412,726.84 9,110,522.79 _ 123,569,898.88
RATIO ANALYSIS-OVERVIEW
Ratios:
1. Provide a method of standardization 2. More important - provide a profile of firms 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:
Page 83
2009
19.23
2010
21.20
2011
20.39
Page 84
percentage
21.5 21 20.5 20 19.5 19 18.5 18 2009 2010 2011 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.
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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 YEAR 2009 Net profit ratio = Net profit/ Net sales 100 (72,795,251.75) 1,278,592,119.69 100 % (5.69)
2010
1.13
2011
7.68
Page 86
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.
Page 87
cost of good sold + Operating Expenses Operating Ratio = --------------------------------------------------- * 100 sales revenue
YEAR
2009
98.48
2010
90.63
Page 88
percentage
100 98 96 94 92 90 88 86 2009 2010 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.
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Administrative Expense Ratio = Administrative Expenses / Net Sales 100 33,542,824.32 1,097,348,091.96 100 80,495,996.48 1,278,592,119.69 100 51,053,332.30 1,588,104,996.85 100
percentage
70 60 50 40 30 20 10 0 2008 2009 2010 percentage
Page 90
YEAR
2008
1.67
2009
2.65
2010
1.71
percentage
3 2.5 2 1.5 1 0.5 0 2008 2009 2010
percentage
Page 91
YEAR
2008
7.50
2009
7.22
2010
6.91
2011
4.8
percentage
8 7 6 5 4 3 2 1 0 2008 2009 2010 2011 percentage
Page 92
Creditors extending credit to its customer or making a short-term bank loan are interested in more than a companys 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 2009 2010 Current Ratio = Current Assets / Current Liabilities 694,514,423.91 / 119,144,495.84 765,189,615.97 / 144,293,906.47 5.83 5.30
2011
917,907,025.96 / 278,029,170.61
3.30
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percentage
7 6 5 4 3 2 1 0 2009 2010 2011 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.
Page 94
YEAR
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
Page 95
percentage
2.5 2
1.5 percentage 1
0.5
Interpretation: The satisfactory ratio is 1:1. According to this we can conclude that GINZA industry is having very good liquidity position.
Page 96
Proprietary Ratio = Proprietors Funds / Total Real Assets 463,982,577.30 1,780,714,199.51 100 507,402,438.96 1769677468.92 100
% 26.05 28.67
2011
31.41
Page 97
percentage
35 30 25 20 15 10 5 0 2009 2010 2011 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.
Page 98
YEAR
2009
2010
1.48
2011
9.86
percentage
12 10 8 6 4 2 0 2010 2011
percentage
Interpretation: An increasing ratio indicates that outside creditors have a larger claim
than the owners of the business.
Page 99
YEAR
Long term funds To Fixed Assets = Long Term funds / Fixed Assets 100
2009
71.50
2010
65.90
2011
56.10
Page 100
percentage
80 70 60 50 40 30 20 10 0 2009 2010 2011 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.
Page 101
YEAR
Return On capital Employed = Net Profit(Before Interest and Tax) / Capital Employed 100
2009
9.36
2010
28.09
2011
42.51
percentage
45 40 35 30 25 20 15 10 5 0 2009 2010 2011 percentage
Page 102
YEAR
2009
15.68
2010
3.52
2011
23.13
Page 103
25
percentage
15.68
23.13
20
15
10
3.52
Interpretation: The profitability decreased from 2009 to 2010 by 11.56 % but in 2011 the shareholders got more return in comparison to 2009.
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.
Page 104
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.
YEAR
2009
0.75
2010
0.98
2011
1.20
Page 105
percentage
1.4 1.2 1 0.8 0.6 0.4 0.2 0 2009 2010 2011 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.
Page 106
YEAR
2009
71.80
2010
89.73
2011
94.63
100 90 80 70 60 50 40 30 20 10 0 2009
percentage
percentage
2010
2011
Page 107
Bibliography.
Books. Marketing Management Marketing Management By Philip Kotler. EditionPage Nos. 3,298,315-334,471-495,471-484 Human Resource Management. Human Resource Management text And Cases. By- K. Aswathappa. Edition-6th
Page 108
Other.
Income
Sales 1,278,592,199.69 Increase\decrease in stock 1,588,104,996.85
(16,771,656.oo) 50,368,619.00
Page 109
TOTAL
1,333,308,120.54
EXPENDITURE
Raw materials 971,430,120.97 857,758,010. 16,067,461.86
Store & spares 16,575,045.78 Payments to and provisions for employees 109,481,564.47 Power & fuel
142,466,527.59
Processing , colouring ,& hand printing & cutting charges 21,602,870.10 Administrative & other expenses
Interest
Depreciation
TOTAL
1,377,424,597.55 Less: deferred revenue expenditure 4,159,560.00 Profit before taxation & exceptional item (48,276,037.01) Less: exceptional item 24,591,214.74
4,159,560.00
28,663,099.38
10,755,375.00
Page 110
Less: provision for deferred tax liability (19,690,427.07) Profit after taxation (54,229,427.68) Add: items Balance b\f from previous year 367,076,341.98 Less: income tax payment Balance carried to balance sheet 312,846,517.30Basic and diluted earnings per share (6.10)
(24,363,425.39)
41,546,149.77
1,873,711.89 312,846,517.30
356,266,517.30 4.68
57,452,988.54 81,816,413.93
Page 111
2. investments
827,300.00 8,698,300.00
3. current assets , loans & advances a)inventories b)sundry debtors c)cash current assets d)other current assets e)loans and advances 444,238,725.00 257,999,205.38 14,428,435.96 39,412,726.84 9,110,522.79 765,189,615.97 less: current liabilities & provisions Current liabilities Provisions 121,470,906.47 22,823,000.00 144,293,906.47 Net current assets 575,369,928.07 4. Miscellaneous expenditure (to the extent not Written Off or adjusted) 620,895,709.50 97,046,495.84 22,098,000.00 119,144,495.84 439,489,563.00 214,344,414.38 7,696,254.63 27,638,724.98 5,345,448.92 694,514,423.91
Page 112
TOTAL 1,682,746,685.38
year ended
Income
Sales 1,33,22,35,082.85 Increase\decrease in stock 1 ,90,79,27,818.75
(2,86,50,050.00) (1,67,71,656.00)
Page 113
TOTAL
1,32,08,14,545.58
EXPENDITURE
Raw materials 1,05,49,15,820.23 71,55,60,206.97 43,52,17,600.45 34,56,47,276.98 9,22,98,000.83 10,97,55,758.79 12,16,03,939.12 12,11,88,203.46 1,70,40,35,360.63
Interest
Depreciation
TOTAL
1,29,21,51,446.20 Profit before taxation & exceptional item 2,86,63,099.38 Less: exceptional item 1,07,55,375.00 Add: excess dep provided in earlier years written back 15,47,316.90 Add: prior period items 3,26,394.99 Profit before taxation 1,97,81,436.27 Less: provision for taxation 7,25,000.00 Less: provision for deferred tax liability (2,43,63,425.39) : income tax for earlier years Add: MAT credit entitlement
17,69,41,713.55
4,51,61,168.69
1,44,76,014.00
2,65,001.00
14,65,21,559.86
2,37,05,000.00
2,73,83,122.00
10,35,213,73 3,14,92,372.00
0.00 0.00
Page 114
35,62,66,378.96
48,21,56,975,09
14.17
TOTAL 1,63,71,05,728.16
Page 115
Application of funds 1.fixed assets a) gross block b) less: depreciation c) net block d)capital work in progress 1,82,78,75,475.94 72,96,13,739.92 1,09,82,61,736.02 4,50,000.00 1,00,70,63,596.95 1,09,87,11,736.02 1,62,69,97,281.76 62,25,09,428.81 1,00,44,87,852.95 25,75,744.00
2. investments
8,27,300.00 8,27,300.00
3. current assets , loans & advances a) Inventories b) Sundry debtors c) Cash & bank balance d) loans and advances 45, 49, 08,877.00 31, 61, 71,398.93 2,32,56,851.15 12,35,69,898.88 91,79,07,025.96 Less: current liabilities & provisions Current liabilities Provisions 252,474,170.61 25,555,000.00 27,80,29,170.61 Net current assets 62,08,95,709.50 4. Miscellaneous expenditure (to the extent not Written Off or adjusted) 63,98,77,855.35 12,14,70,906.47 2,28,23,000.00 14,42,93,906.97 44,42,38,725.00 25,79,99,205.38 1,44,28,435,96 4,85,23,249.63 76,51,89,615.97
Page 116
TOTAL 1,63,71,05,728.16
Page 117