A

PROJECT REPORT
ON
FIXED ASSETS MANAGEMENT
UNDERTAKEN
AT
RAYMOND LIMITED.
VAPI.
1
2. OBJECTIVES:
MAIN OBJECTIVE:-
To Study the Fixed Assets Management System using At
Raymond Limited.
SUBSIDIARY OBJECTIVE:- later
3. DESIGN/METODOLOGY/APPROAC:
The project report includes the information regarding the company Fixed
Assets Data of Raymond Ltd. !additional"
!. SAMPLING METODS: later
". STATISTICAL TOOLS:
For Analysis purpose different charts and other o#ser$ation data has
#een studied through %hich & came out %ith the interpretation for my
project.
#. TE FINDINGS OF TIS STUDY: later
2
INDEX
SR
No.
PARTICULAR PAG
E
NO
'
Background of the company
(
Vision, Mission and Values
)
Company Profile
*
Group Companies
+
Joint Ventures
,
Brand Portfolio
-
Faric !utlines
.
Plant "etails
#
/
$%!& 'nalysis
'
0
!rgani(ation $tructure
'
'
Milestones
'
(
&echnological Breakthrough
'
)
!)er)ie* of other "epartments
'
*
Production "epartment
'
+
General $tore and Commercial "epartment
'
,
$upply Chain Management "epartment
'
-
'ccount "epartment
'
.
Pro+ect ,eport F-./" '$$/&$
'
/
-ntroduction
(
0
(
,ole of other functional "epartment
0
/
)
0
'nalysis 1 Findings 2Graphical Presentation3
)
'
,ecommendation
)
(
Conclusion
)
)
Biliography
4
BACKGROUND OF TE COMPANY
The Raymond 1roup %as incorporated in '/(+2 and %ithin a span of a
fe%
years transformed from #eing an &ndian textile major to #eing a glo#al
conglomerate.
RA3M45D deals in mainly three sectors6
$. A%&'(&)*:
Raymond ltd is one of the first co7operate house in &ndia to launch Air
charter ser$ice in &ndia in '//, and since then it has #een al%ays a
%ay
ahead of Raymond A$iation.
2. E*+&*,,-&*+:
8.9.Files : tools and Ring ;lus A<ua are the group companies that are
engaged in the manufacture of precision engineering product such as
steel
products cutting tools hand tools agri tools : auto components.
3. T,.(&/,:
=ith a capacity of )) million meters in %ool and %ool #lended fa#rics
Raymond commands o$er ,0> of mar?et share in %orsted suitings in
&ndia
: ran?s amongst the first four fully integrated manufactures of %orsted
5
suiting in the %orld.
The Raymond@s endea$or to ?eep nurturing <uality and leadership
they
al%ays choose the path untraded 7 from #eing the first in '/+/ to
introduce
a poly%ool #lend in &ndia to creating the %orldAs finest suiting fa#ric
the
Super ()0s made from the superfine ''.. micron7 %ool.
Today the Raymond group is $ertically and horiBontally integrated to
pro$ide the customers total textile solutions. Fe% companies across
the
glo#e ha$e such a di$erse product range of nearly '(000 $arieties of
%orsted suiting to cater to customers across age groups occasions
and
styles.
Raymond manufacture for the %orld the finest fa#rics7 from %ool to
%ool
#lended %orsted suiting to specialty ring denims as %ell as high $alue
shirting.
After ma?ing a mar? in textiles Raymond step into garmenting
through
highly successful $entures li?e Sil$er Spar? Apparel Ltd. And Regency
Textile is ;ortuguesa Ltd !for fine Tailored Suits Trousers and 8ac?ets"
C$er Dlue Apparel Ltd. !8eans%ear" and Eele#rations Apparel Ltd.
!Shirts".
6
Raymond also has some of the most highly respected apparel #rands
in
their portfolio6 Raymond ManBoni ;ar? A$enue Eolor ;lus ;arx De6
FappG
And 5otting Hill.
The Raymond 1roup also has an expansi$e retail presence esta#lished
through the exclusi$e chain of AThe Raymond ShopA and stand7alone
#rand
stores for ManBoni ;ar? A$enue Eolor ;lus ;arx De6 FappG And
5otting
Hill.
=ith a +00 million ISJ turno$er Raymond is today one of the largest
players in fa#rics designer %ear denim cosmetics : toiletries
engineering
files : tools prophylactics and air charter ser$ices in national and
international mar?ets. All Raymond plants are &S4 certified le$eraging
on
cutting7edge technology that adheres to the highest <uality
parameters
%hile also #eing en$ironment friendly.
VISION 0 MISSION

HR Kision
7
LRaymond the most desired %or?place for top talentM
HR Mission
=e commit to the HR Kision of ma?ing LRaymond the most desired
%or?place for top talentM L=e %ill stri$e to %ea$e in the core
Raymond $alue
namely Nuality Trust Leadership and Cxcellence in all our actions :
HR
processes so as to ma?e e$ery Raymondiate a complete man.
VALUES
Trust
Nuality
Leadership
Cxcellence
8
COMPANY PROFILE
5ame of the company 6 Raymond Limited !Textile di$ision"
Address of Registered 4ffice 6 ;lot '+,OH 5o. ( Fadgaon
Ratnagiri
*'+ ,'(.
Factory Location and Address 6 5 .H. 5o.. 9had?i Id%ada Tal7;ardi

Tel 5o 6 0(,07)(+((*)

Fax 5o 6 0(,07()*0)((
3ear of Csta#lishment At Kapi 6 (00+
Dusiness Acti$ities 6 Manufacturing ;rocess of Fi#re to
Fa#ric
Doard of Directors 6 Dr. Kijaypat Singhania 1autam Hari
Singhania D.9. 9edia 5ana Ehudasama
D.K.Dharga$a I.K.Rao &.D.Agar%al
5a#an?ur 1upta ;.9.Dhandari
19
Dan?ers 6 !'" Dan? of &ndia
!(" Dan? of Maharashtra
!)" Dan? of America
!*"Eentral Dan? of &ndia
!+" Eity Dan? 5.A.
!," HDFE Dan? Limited
!-" The Hong?ong and
Shanghai Dan?ing
Eo7operation Limited
!." Standard Ehartered
Dan?
Stoc? Eode 6 Dom#ay Stoc? Cxchange Ltd 7+00))0
5ational Stoc? Cxchange of &ndia7
Raymond CN

Auditors 6 Dalal : shah
=e#site 6 =%%.Raymondindia.Eom
11
GROUP COMPANIES
There are '0 Eompanies in Raymond 1roup.
Raymond Ltd.
&t is among the largest integrated manufacturers of %orsted fa#rics in
the %orld.
Raymond Apparel Ltd.
Raymond Apparel Ltd. has in its folio some of the most highly
regarded apparel #rands in &ndia 7 ManBoni ;ar? A$enue Eolor ;lus
;arx De6 and FappG And 5otting Hill.
Eolor ;lus Fashions Ltd.
The company %as ac<uired #y Raymond to cater to the gro%ing
demand for a high end casual %ear #rand in the country for men and
%omen.
Sil$er Spar? Apparel Ltd.
A garmenting facility manufacturing formal suits trousers and jac?ets.
Regency Textile ;ortuguesa Ltd
A facility set7up in northern ;ortugal #ordering Spain in Eaminha for
the manufacturing suits jac?ets and trousers.
12
C$er Dlue Apparel Ltd.
A state7of7the7art denim garmenting facility.
Eele#rations Apparel Ltd.
A facility set7up for the manufacture of formal shirts
8.9. Files : Tools
A leading player in the engineering files : Tools segment and the
largest producer of steel files in the %orld.
Ring ;lus A<ua Ltd.
A leading manufactures in the engineering automoti$e components.
8.9. Helene Eurtis Ltd.
A leading player in the grooming accessories and toiletries category.
8.9. &n$esto Trade !&ndia" Ltd.
89&T is an in$estment company registered %ith Re$erse Dan? of &ndia
as 5on7Dan?ing Financial Eompany.
1#
JOINT VENTURES
Raymond IE4 Denim ;$t. Ltd.
The manufacturers and mar?eters of denim fa#rics.
Raymond Fam#aiti ;$t. Ltd.
A 1reenfield facility manufacturing high $alue cotton shirting.
Raymond =oolen 4uter%ear Ltd.
A plant set up to manufacture carded =oolen fa#rics and #lan?ets.
1as Apparel ;$t. Ltd.
The 8oint $enture %ith 1rotto S.;.A launched the highly successful
A1ASA #rand in &ndia.
8.9. Ansell Ltd.
The manufacturers and mar?eters of 9ama Sutra condoms and
surgical glo$es.
8.9. Tala#ot Ltd.
Raymond has 8oint $enture %ith M4D 4utillage SA. Manufacturing
files and rasps for international mar?ets.
BRAND PORTFOLIO
10
14
1 M'*2)*&
ManBoni is a luxury lifestyle #rand pro$iding the #est in contemporary
international style : luxury. The #rand offers the discerning customer a
super premium range of suits trousers jac?ets shirts and accessories
such as ties cufflin?s #elts soc?s shoes and leather #ags.
P'-3 A%,*4,
;ar? A$enue is a premium lifestyle #rand and has #een the single
largest formal %ear #rand in &ndia for the past t%o decades.
C)/)- P/45
Eolor ;lus is among the largest smart casual #rands in the premium
category. The company ac<uired #y Raymond caters to the gro%ing
demand for a high end casual %ear #rand in the country.
P'-.
;arx is a premium casual lifestyle #rand comprising a range of
semi formal and casual cottons2 #lends and denim %ear reflecting
the $i#rancy and attitude of the energetic (( to )0 year old.
B,:
De6 offers fashion that captures the latest trends from across the
glo#e. De6 offers a %ide range of apparel and accessories for #oth
men and %omen from %ell ?no%n &ndian designers li?e Anshu Arora
Sen. A?#ar Shahpur%alla 9rishna Mehta Manish Arora ;reeti
8ha%ar ;riyadarshini Rao Rohit Dal Sa$io 8on Shantanu : 5i?hil
Karun Dhal Kidhi Singhania and =endell Rodric?s across categories
namely 7 =omen@s =estern %ear =omen@s Cthnic %ear Lounge
FABRIC
6)-5(,7 54&(&*+5:
;ure %ool ;oly%ool #lended fa#ric
)) million meters
* integrated plants in &ndia
Raymond %ith an installed capacity of )) million meters of %ool : %ool
#lended fa#rics is the leading integrated producer of %orsted suiting
fa#ric in
the %orld. &t has four plants located in the states of Maharashtra 1ujarat
and
Madhya ;radesh. The company exports its suiting fa#ric to more than ++
countries including ISA Eanada Curope 8apan and the Middle Cast.
Raymond an inno$ator in the &ndian textile industry has de$eloped a
heritage of in7house s?ills for research : de$elopment. This has resulted
in
path7#rea?ing de$elopments of ne% products %hich are today the
corner
stones of the %orsted suiting industry in &ndia. The 1roup has mastered
the
craft of producing suiting using %ool from .0s to ()0s count #lends
%ith
superfine polyester and other specialty fi#ers li?e Eashmere Angora
Alpaca
Sil? Linen etc.
15
T8'*, P/'*(
This is the mother plant and is the centre of competence for %orld class
manufacturing and design facilities. =ith decades and expertise and
finely honed s?ills this plant is a treasure house of ?no%ledge for
producing superfine %orsted suiting fa#rics.
C88&*79'-' P/'*(
The Raymond Ehhind%ara plant set up in '//' is a state7of7the7art
integrated manufacturing facility located +- ?ms a%ay from 5agpur in
Eentral &ndia. Duilt on '00 acres of land the plant produces premium pure
%ool %ool #lended and polyester $iscose suiting.
This plant has achie$ed a record production capacity of '*.,+ million
meters gi$ing it the distinction of #eing the single largest integrated
%orsted suiting unit in the %orld.
J'/+')* P/'*(
16
A ne% manufacturing facility %as set up at 8algaon to meet the
increasing demand for %orsted %oolen fa#rics in '/-/. &n (00, %orld
class carded %oolen unit Raymond Fedora Ltd also set up.
V':& P/'*(
Raymond has increased its %orsted suiting capacity #y ) million
meters as part of the second de$elopmental phase of the Kapi plant.
After this expansion Raymond %ill ha$e a total capacity for
manufacturing )' million meters of %orsted suiting per annum.
Modeled to meet international standards the Kapi plant has #een
set up on ''( acres of lush green land %ith Hi7tech machinery such as
%arping e<uipment from S%itBerland %ea$ing machines from Delgium
finishing machines automatic dra%ing7in and other machines from
&taly.
This plant of Raymond is the youngest mem#er in the family. The
plant is set up on lush green land. This %as the property of Rohit ;ulp
: ;aper Mills Ltd and after its closure %as ac<uired #y Raymond %ith
$ision to de$elop a %orld class unit to meet international standards.
T8, /);'(&)*<5 '7%'*('+,5 '-,:
Situated in 1ujarat7 ?no%n for its good go$ernance
Situated on 5H no.. and near to industrial Hu#
=ell connected #y Rail : Road
;roximity to Mum#aiOThane
5on7polluted
Accessi#ility of s?illed manpo%er
Eontinuous a$aila#ility of %ater
Ir#aniBed and literate people
17
Multi7 culture community %ith communal harmony
Eurrently the unit is engaged in manufacturing of premium %orsted
suiting fa#rics and is e<uipped %ith state of the art technology %ith hi7
tech machineries $iB. =arping e<uipment from S%itBerland =ea$ing
machine from Delgium Finishing machines automatic dra%ing7in and
other machines from &taly to produce '' million mtr fa#rics per annum
&t is propose to manufacturing polyester %ool polyester $iscose and
all suiting fa#rics in near future.
O%,-'// O-+'*&2'(&)* C4/(4-,
4$er all organiBational culture of Raymond Kapi is go$erned #y self
7disciplineand understanding. They %or? together and %ith
commonunderstanding try to achie$e the o#jecti$e of the organiBation.
4ther acti$ities underta?en for agood 4rganiBational Elimate are
sho%n #elo%6
1ood relation %ith go$ernment agencies and contractors
1ood communication from top to #ottom le$el and #ottom to top
le$el2
1ood communication #et%een Management : Staff : Cmployees2
Discipline is maintain at all le$els2
1ood relation #et%een Management : staff #et%een Staff :
%or?ers2
;unctuality of 8o# 7 satisfaction Loyalty.
18
S6OT ANALYSIS
S(-,*+(8:
Location Ad$antage
=ater a$aila#ility
Ra% material A$aila#ility
S?illed la#our at lo% cost
Modern %orld class
machineries
Schematic Layout
6,'3*,55:
Current $cenario of market
/ffect of go)ernment policies
2"elay in Procedure3
O::)-(4*&(& ,5:
-ncrease focus on product
de)elopment
199:capcity utili(ation
-ncrease foreign market
usiness
T8-,'(5 :
Competition in "omestic
Market
1 -nternational market
/cological 1 social a*areness
,egional 'lliances
29
ORGANISATIONAL STRUCTURE
21
22
MILESTONES
$=2" 7 Setup of The Raymond =oolen mill in the area around Thane cree?.
$=!! 7 Lala 8uggilal Lala 9ailashpat Singhania too? o$er The Raymond
=oolen Mill. The mill %as primarily ma?ing cheap and coarse %oolen
#lan?ets and modest <uantities of lo% priced %oolen fa#rics.
$="> 7 Setup of a ne% manufacturing acti$ity for ma?ing indigenous
engineering files ?no%n as 89 Files : Tools. This has no% #ecome the largest
facility of its ?ind in the %orld.
$="? 7 The first exclusi$e Raymond Retail sho%room 9ingAs Eorner %as
opened in '/+. at Dallard Cstate in Dom#ay.
$=#! 7 Setup of a ne% Eom#ing Di$ision. This %as follo%ed #y a phase of
$ertical integration facilitating in the processing of multi7fi#res and
technology impro$ements to ma?e #lended fa#rics.
$=#? 7 Raymond setup a readymade garments plant at Thane. The
readymade garments di$ision of Raymond has since then gro%n rapidly.
Raymond has no% #ecome the leader among ready7mades in &ndia
achie$ing a #usiness turno$er of o$er Rs. (000 million.
$=@= 7 A ne% manufacturing facility %as set up at 8algaon to meet the
increasing demand for %orsted %oolen fa#rics.
$=?> 7 Kijay pat Singhania too? o$er the reins of the company. He injected
fresh $igor into Raymond transforming it into a modern industrial
conglomerate.
$=?# 7 Launch of P;ar? A$enueP the premium lifestyle #rand pro$iding a
complete %ardro#e solution to the men %ho li?e to dress %ell : #e current
on styles : fashion.
$==> 7 The first sho%room a#road for Raymond in 4man.
2#
$==$ 7 A ne% manufacturing facility %as set up at Ehhind%ara near 5agpur.
$==" 7 Superfine pure %ool collection under the Lineage Line !Super '00S to
Super '*0S".
$==# 7 The Renaissance Eollection made of Merino %ool #lended %ith
polyester and specialty fi#res !Super '00S to Super '*0S".
$==# 7 RaymondAs denim2 focusing on <uality inno$ation and the creation of
exclusi$e products that ha$e al%ays caught the eye of some of the %orldAs
leading denim %ear #rands. &ts designs ha$e al%ays ?ept pace %ith the
changing styles and cuts found in e$ery 3oungster@s closet. =ith a *0 million
meters capacity Raymond today ran?s amongst the top ( producers of ring
denim in &ndia
$=== 7 The EhairmanAs Eollection of Super '+0S made from Merino =ool and
Eashmere follo%ed #y Super ',0S to super '/0S.
$=== 7 Launch of P;arxP a premium casual %ear #rand #ringing customers a
range of semi7formal and casual clothes.
2>>> 7 Launch of PDe6M exclusi$e prQt line of ready7to7%ear designer clothing
for men and %omen.
2>>3 7 Setup of ASil$er Spar? Apparel Ltd.A for manufacturing suits and
formal trousers catering largely to export mar?ets.
2>>3 7 Ac<uisition of Eolor ;lus
2>>! 7 Super ((0S fa#rics under the EhairmanAs Eollection.
2>>" 7 Setup of state7of7the art 8eans%ear facility AC$er #lue Apparel Ltd.A
near Dangalore.
2>>" 7 Setup of state7of7the art facility AEele#rations Apparel Ltd.A for the
manufacturing of formal shirts.
20
2>>" 7 Raymond achie$ed a rare feat and a historical milestone %ith the
creation of the %orldAs finest %orsted7suiting fa#rics from the finest %ool
e$er produced in the %orld7 The Super ()0s made up of ''.. micron of %ool.
2>>" 7 Launch of ACxpressionsA an ex<uisite collection of all %ool and
;oly%ool suiting specially crafted using exotic fi#ers li?e Eashmere Angora
Mohair Dam#oo Easein.
2>># 7 Set of RaymondAs third %orsted unit at Kapi in 1ujarat. Raymond no%
has ) state of the art units %ith a com#ined capacity of )' million meters of
%orsted fa#ric.
2>># 7 Launch of design studio in &taly for cutting edge design capa#ilities
for exports and domestic #rands.
2>># 7 Set up of %orld class carded %oolen unit Raymond Fedora Ltd in
8algaon.
2>># - Set up of 1reenfield shirting unit at 9olhapur producing high $alue
cotton shirting. This facility is set up as part of the companyAs 8K %ith 1ruppo
Fam#aiti.
2>>#- Set up of 8.9 Tala#ot Ltd R 8K %ith M4D France for the manufacturing
of files and rasps.
2>>#- Launch of FappG 4ur ?ids %ear #rand %ith first store in Ahmeda#ad
2>>@7 Cntered into joint $enture to retail premium #rand S1AS@ in &ndia.
2>>@- Launch of ne% #rands for %omen@s %ear.
2>>?- Launch of S Raymond Finely Erafted 1arments@7 readymade apparel
under Raymond #rand
2>>?7launch of S5ec?ties : More@7 ne% format store for accessories.
24
TECNOLOGICAL BREAKTROUGS
Raymond has #een pioneering technological #rea?throughs o$er the
years and %as the first to introduce ;olyester7=ool and ;olyester7
=ool7Kiscose in the &ndian mar?et. During the last decade many path
#rea?throughs %ere made.
$==": Superfine pure %ool collection under the Lineage Line !Super '00s to
Super '*0s".
$==#6 The Renaissance Eollection made of Merino %ool #lended %ith
polyester and specialty fi#ers !Super '00s to Super '*0s".
$===6 The EhairmanAs Eollection of Super '+0s made from Merino =ool and
Eashmere follo%ed #y Super ',0s to Super '/0s.
2>>26 Super (00s !').+ microns" fa#rics under the EhairmanAs Eollection.
2>>36 Applause =ool7Rich Home =asha#le Suiting.
25
2>>36 Super ('0s !').( microns" fa#rics under the EhairmanAs Eollection.
2>>!6 Super ((0s !'(.- microns" fa#rics under the EhairmanAs Eollection.
2>>"6 Raymond achie$ed a rare feat and a historical milestone %ith the
creation of the %orldAs finest %orsted7suiting fa#ric from the finest %ool e$er
produced in the %orld7 The Super ()0s fa#ric made up of ''.. micron of
%ool.
2>>"6 Launch of ACxpressionsA an ex<uisite collection of all %ool and
poly%ool suiting fa#ric specially crafted using exotic fi#ers li?e Eashmere
Angora Mohair Dam#oo Easein.
OVERVIE6 OF OTER DEPARTMENTS
UMAN RESOURCE DEPARTMENT .
Human resource management ser$es these ?ey functions6
Recruitment : Selection
Training and De$elopment !;eople or 4rganiBation"
;erformance C$aluation and Management
;romotionsOTransfer
Redundancy
&ndustrial and Cmployee Relations
Record ?eeping of all personal data.
Eompensation pensions #onuses etc in liaison %ith ;ayroll
26
Eonfidential ad$ice to internal AcustomersA in relation to pro#lems at
%or?
Eareer de$elopment
Eompetency Mapping
ENGINEERING DEPARTMENT
Cngineering department includes four major su# departments6
Mechanical
Clectrical
&nstrumentation
Ei$il
The major acti$ities of Mechanical and Clectrical department are to
fulfil
the follo%ing re<uirement to the different textile departments6
Steam
=ater
27
Clectricity
Air
IT DEPARTMENT
OAB,;(&%,5
To pro$ide computer system facility to all department.
To pro$ide internet access facility to all department.
To facilitate company login &D creation to officers.
To facilitate printouts and Terox in se$eral department.
To facilitate net%or?ing of all computer system in the company.
To chec? and sol$e the pro#lems related to computer system
accessing in the factory premises.

&T comprises in three parts6
28
Hard%are
Soft%are
Administrator
There are three types of ser$er inside the &T room.
Data#ase ser$er
=indo%s ser$er
Monitoring ser$er
CUALITY CONTROL DEPARTMENT
Nuality Eontrol is concerned %ith e$aluation of test data and its
application to the control of textile process ra% material intermediate
product and final product. &t is concerned not only %ith <uality le$el
and the cost of maintaining this le$el #ut also %ith the presentation of
tangi#le $alues to measure <uality and changes in <uality. The main
o#jecti$es are67
Assistance in esta#lishing <uality controls at $arious points in the
manufacturing process.
#9
Maintenance and cali#ration of process control e<uipment.
&n$estigation of defects and assistance in sol$ing <uality pro#lem
during production
&mplementation of <uality control measures for incoming store.
4perating a testing la#oratory to carry out re<uired test and
analysis
There are different type of instrument used in NE department for
different type of material testing. Tests are done on the fi#er stage
yarn stage fa#ric stage.
GENERAL STORE DEPARTMENT
F4*;(&)*5
Ra% material that are re<uired in the production are store in stores.
&ndent is made for the material re<uired #y the department.
;urchase Re<uisition is recei$ed from the department and the demand
is send to purchase department. The purchase department %ill gi$e
the order for the material. The material %ill #e recei$ed in the general
#1
stores and the $erification of <uantity is done #y general stores and
<uality is $erified #y respecti$e department.
&f the material is not according to the demand or the re<uirement than
it is rejected and for that purpose rejection note is prepared and
material %ill #e returned to the supplier.
1R5 !1oods Recei$ed 5ote" is Recei$ed for the material purchased on
#ehalf of departments and the material is $erified %ith the note. After
recei$ing the material it is shifted to D&5.
D&5 Eard system is applied for ?eeping the
record of materials.
COMMERCIAL DEPARTMENT
The ra% Material that is demanded #y the departments for production
is informed at Thane and is coordinated %ith Thane head office. The
material are procured here independently.
The material that are procured are Cngineering item spares
pac?aging material dyeing Dearing for machines etc.
All the material are purchased from Kapi Surat Dom#ay.
#2
PRODUCTION DEPARTMENT
PRODUCTION CAPACITY PER DAY
NAME OF TE
DEPARTMENTS
PA
SE $
PA
SE2
PASE
3
##
SE4IR&51 '*000
9g.
1R&C1C E4MD&51 ')0
0
9g.
-000
9g.
E45KCRTCR -00
0
9g.
-000
9g.
RCE4MD&51 )(0
0
9g.
'*000
9g.
D3C&51 )(0
0
9g.
'*000
9g.
S;&55&51 )(0
0
9g.
-+00
9g.
=CAK&51 -00
0
mtrs
'*0
00
mtrs
(.000
mtrs
F&5&SH&51 '+0
00
mtrs
(+0
00
mtrs
*0000
mtrs
F4LD&51 '+0
00
mtrs
)00
00
mtrs
*0000
mtrs
=ARC4ISC '+0
00
mtrs
)00
00
mtrs
'+0000
mtrs
#0
PRODUCTION PROCESS:

#4
$C!;,-<G 2%ool3
G,/= C!MB-<G
"=/-<G
,/C!MB-<G
$P-<<-<G
=',< ,!!M
%',P-<G
%/'V-<G
M/<"-<G
F-<-$>-<G
C!<V/,&/, 2Polyester3
F!?"-<G
%',/ >!;$/
SCOURING
Scouring is the process of cleaning the ra%7%ool %hich contains
natural 1reece and foreign particles li?e dirt dust7#urrs and t%igs hey
and other $egeta#le matters. 5ormally fi#er length is + to / cm and
a#o$e and fi#er diameter is '- to (, micron. Here the ra% material is
coming in form of #ales. 4ne #ale %eight has '+0 to ',0 ?g. Dale
opening is done #y manually spreading of fi#ers from #ale on the floor
%ith the help of %or?ers. A special mixture of lu#rication oil and %ater
is sprayed on the spreaded fi#ers. Here lu#rication of fi#ers is done so
that %ool %ill #e going in to carding and a$oids any static generation
further processing of the %ool. After completing the process of
scouring clean %ool pass on to the next department.
#5
SE4IRCD
=44L
DALC
4;C5&51
P,!C/$$-<G !F %!!?
C?/'< %!!?
GREY COMBING
This department is the preparatory department #efore going for dyeing
or re7Eom#ing. According to the ra% material it has t%o sections !a"
=ool !#" ;olyester. &n this process the ra% materials goes through
$arious su# processes li?e carding gilling and com#ing %ith respect to
%ool and su# processes li?e con$erter and gilling for polyester. The
#asic aim of this department is to remo$e the impurities in the fi#ers
and create e<ual siBe fi#ers for further processing. From this
department the ra% materials are con$erted into tops and sent to
Dyeing.
EARD&516
;aralleliBed fi#er and sli$er formation
To remo$e impurities such as $egeta#le matters dust dint etc.
To open the tiny lumps and hoo?s
To con$ert criss7cross and tough form of #ul? and gi$ing finally rope
li?e shape
1&LL&51
To impro$e e$enness
To #lend the fi#re
To remo$e shorter staple fi#re
To strengthen the fi#re
E4MD&516
To remo$e the short fi#ers
To remo$e the neps and impurities
#6
To impart luster
The process flo% of 1rey Eom#ing is gi$en #elo%6


#7
C',"-<G
G-?? B!. 1
G-?? B!. 2
G-?? B!. #
C!MB/,
G-?? B!. 0
G-?? B!. 4
G,/=
C!MB-<G
CONVERTER:
Eon$erter machine is only for polyester materials. The flat %e# of
continuous filament called T4= %hich is fed to the con$erter and cut
into the desired staple length so that it can #e used to spin the staple
yarn finally the filaments are con$erted to sli$er and fed to cans Then
sli$er fed to gilling machines so that fi#er #ecomes more parallel and
e$en.
#8
C!<V/,&/,
G-?? B!. 1
G-?? B!. 2
G-?? B!. #
C!<V/&/,
DYEING
This is the one of most important department of all #ecause here the
fi#ers are dyed to suita#le shades as per the customer re<uirement.
Dyeing is the process of coloring textiles materials #y immersing them
in an a<ueous solution of dyeing called li<uor consist of dye %ater and
an auxiliary after dyeing the tops are dried through HTH; mOc and RF
mOc and further sent for the re7com#ing. Here #efore dyeing the
different shades are matched to customer re<uirement and passed
through <uality inspection to a$oid re%or?.
The ;rocess flo% of Dyeing is gi$en #elo%6

09
P,/P',-<G !F "=/ ?-@;/,
$'MP?/ "=/-<G
$'MP?/ M'&C>-<G
C!MP,/$$-<G !F %!!?A
P?!=/$&/, B;M!P &!P$
"=/-<
G
RE-COMBING
After dyeing the dyed materials are going to Re7com#ing department.
&nput in terms of %ool tops polyester tops etc go to the Re7com#ing
section. Then they #lend these according to their re<uired <uality. The
main o#jects of Re7com#ing are67
To separate the fi#ers of dyed tops of %ool.
Dlending of fi#ers $iB. %ool polyester
Cnsuring homogenous #lending
Remo$al of short fi#er
Remo$al of entanglement at the time of dyeing
Remo$al of undesired elements li?e slu#s neps : pin point.
The process flo% of Re Eom#ing is gi$en #elo%6
01
&!P "=/-<G
>=",!
/.&,'C&!,
,'"-! F,/@;/<C= ",=/,
"/F/?&/,
B?/<"/,
G-?? B!. 1
SPINNING:
Spinning is the process in %hich fi#ers are con$erted into yarn %hich is
actually used for the %ea$ing and to ma?e the fa#ric here the Re7
com#ed tops are again passed through gilling machine to increase the
strength of the fi#er and to prepare sli$ers that can #e fad into ru##ing
frame no% the sli$er is con$erted into ro$es #y applying draft and
dou#ling operations and reduction of sli$er@s cross sections. 5o%
ro$ing spools are #rought to ring frame and ro$ing is con$erted into
yarn #y roller drafting system. After the ring frame spinning is done
yarn is su#jected to steaming #ecause highly t%isted yarns are prone
to snarling during %inding. After the spinning of the fi#ers on the ring
frames it is chec?ed for the uniformity and #rea?ages in the Auto7
Eonner section and also remo$e the defects li?e slu#s neps thic?
place thing place etc. and to o#tain suita#le pac?ages for further
processing. The yarns in the corn and cheese form are recei$ed from
02
,/BC!MB-<G
G-?? B!. 2
G-?? B!. #
G-?? B!. 0
C!MB/,
G-?? B!. 4
auto7%inding machine here t%o yarns are just %ound together %ithout
any t%ist. Then t%isting is done for impro$e the e$enness strength
and elongation. After the T.F.4 the pac?ages is again sent to steaming
to reduce snarling tendency and finally all yarn pac?ages sent to the
yarn room department for storage.
The process flo% of spinning is gi$en #elo%6


Eo
unt Delo% )0 5m

0#
$P-<<-<G
G-?? B!. #
G-?? B!. 0
V/,&-C'? G-?? B!.
,;BB-<G F,'M/
,-<G F,'M/
$&/'M-<G
G-?? B!. 1
G-?? B!. 2

Siro

Lycra
Siro Lycra
and
Single =eft

YARN ROOM:
This is the storage room for the yarn that are produced in the spinning
section and the yarn that are outsourced. &t acts as a #ridge #et%een
the Spinning and the =arping stage of the production. The main
function of yarn room is to arrange all yarn pac?ages according to
correct shade num#er lot %ise etc. The yarn is %eighted and entry is
done in computer. 3arn needed for %arping and %ea$ing is determined
#y S.E.M department. &f yarn is not sufficient then it is imported from
$arious exporters li?e CLC15T S;&55CRS DH&=A5& =CLS;I5 54KA
;CTR4EHCM&EALS SA1AR T=&STCRS K&9RAM =44LC5 etc or other
plants of RA3M45D. &t is the only section that does not add $alue to
00
$&/'M
';&! C!</,
P?= %-<"-<G
&%! F!, !</
$&/'M-<G
=',< ,!!M
the in$entory #ut despite that is critical for the smooth functioning of
the processes. The capacity of the yarn room is nearly a#out ')0 tones
of the yarn.
3arn Room is an intermediary storage location for yarns and it comes
in #et%een the spinning department and the %ea$ing department in
the process flo%. The yarn room at Raymond Kapi currently stores (+0
T of yarn on an a$erage. To ma?e the storage and retrie$al of the
yarns simpler and systematic =arehouse Management System !=MS"
is trying to #e implemented in Kapi. Ho%e$er implementation of =MS
re<uires determination and standardiBation of the practices to #e
follo%ed in the yarn room.
The project L&mplementation of =arehouse Management System in
KapiM aims at studying the re<uirements constraints etc of the yarn
room and coming up %ith %ays to impro$ise the management of the
yarn room.
04
$P-<<-<G
P,!";C&-!<
!;&$-"/
=',<
,/C/-P&
C>//$/
"=/-<G
,/C/-P&
%/'V-<G
,/&;,<
%/'V-<G
-$$;/
"=, ,/C/-P&$ =',< A$&!,/$
=',< A-$$;/$ =',<
!;&$-"/
=',< -$$;/$
P'CC-<G 1
-$$;/$
"$G A $PG A C"
-$$;/$
05
3arn room currently stores (+0 T of yarn on an a$erage.
The #rea?up of this figure on the #asis of the type of yarn is sho%n
#elo%.
TD:, )E
Y'-*
C4'*(&(D
Deco 3arn , T
Kiscose
3arn
, T
Texturised
3arn
, T
;= 3arn '-* T
;K 3arn +. T
All %ool * T
For #ar coding purposes a yarn is distinguished from another on the
#asis of a com#ination of the follo%ing parameters6
'. Datch no.
(. Eount
). Dlend
*. Material
+. Source
,. =eight
-. Date of receipt
.. Date of deli$ery
06
T%o yarns though they may #e of the same count #lend and material
cannot #e used for the production of the %arp of the same fa#ric
unless they ha$e the same #atch no. Any $iolations to this are su#ject
to the discretion of the SEM department. Hence #atch no. is used as
the primary ?ey for a #ar code. Datch no. %hen fed in for a yarn %ill
gi$e other rele$ant details. A single sales order can ha$e se$eral #atch
num#ers %hile a #atch num#er %ill correspond to only one sales
order. =hene$er a #ar code is entered it should return details of the
yarn including the #in O trolley locations %here it is stored. Similarly
the =MS should #e a#le to pro$ide information of the yarns contained
in that #inO trolley and ho% much capacity is remaining in it %hen a
#in num#er is entered.
6ARPING
The yarns %hich are coming from Spinning Section are going for
%inding for preparing re<uired amount of pac?age. Then they are
creeled according to the %arp pattern %hich is gi$en #y designing
department. The main o#ject of the %arping is to produce the %arp
sheet according to the %arp pattern and formation of %arp #eam.
=inding supply sufficient num#er of pac?ages in form of cheese
to #encreel so that sectional %arping %ould ta?e place here num#er of
pac?ages are determined according to length of fa#ric.
Ereeling is a process of loading the pac?ages on creel according to the
design gi$en #y designing department and dra%ing yarn from
respecti$e pac?ages to sectional %arping machine through guiding
rollers and eyelets.
07
Sectional %arping is a process of preparation of %arp yarn for process
of creeling here length of %arp yarn is determine #y length of fa#ric
according to considering the factor li?e shrin?age %eight loss etc.
=axing is done during %arping and #eaming process to ma?e %rap
yarn smooth so that there %ill #e minimum #rea?age on loom. 9notting
is a process of ma?ing ?nots of %arp yarn on #eam to achie$e %arp
length for particular length of fa#ric. Dra%ing in is the process of
passing of %arp yarn through the eye of healds according to peg plan.
Denting in this process this plan is descri#es the arrangement of the
%arp ends in the reed. Denting plans are entirely dependent on the
end density and num#er of dents per centimeters
&n the reed though there are some fa#rics that re<uire precise
positioning of dent %ires in relationship to %ea$e.
The process flo% of the %arping is gi$en #elo%6


08
%-<"-<G
C,//?-<G
$/C&-!<'? %',P-<G
$-D-<G 2C/??;?!$-C =',<3
6EAVING
=ea$ing is the department %here #y means of simple interlacement
of %arp %eft and sel$edge@s t%o sets of threads are con$erted in to
fa#ric. The #eam from the %arping section is used here to prepare the
real fa#ric that %e ?no%.
;assage of %arp yarn through looms the %arp yarns are contains on
%ea$er@s #eam at the #ac? of loom each ends are successfully passed
through each of drop pin eyes %hich is an essential part in stopping
the loom in e$ent of a #rea? in any of the %arp yarn then it is pass
through the eye of heads through gaps #et%een the %ire of reed
%hich is the com# light structure in front of the reed %arp and %eft
yarns are com#ined together to form fa#ric %hich is dro%n for%ard to
49
%',P-
<G
B/'M-<G
%'.-<G
C<!&&-<G
G'&&-<G
';&! ",'%-<G
#e store on the cloth roller. After completing pre7decides length of the
fa#ric the cloth roller is gi$en to grey perching ta#le. Here $isi#le
inspection of fa#ric is done. The fa#ric is pass o$er the frosted glass
%ith light #ehind it and it inspect $isually if any defects are there then
the %or?er gi$e some mar? on fa#ric %ith some mar?ing material
%hich is easily remo$a#le. Then material is hando$er to mending
department.
The process flo% of %ea$ing is gi$en #elo%6
41
%/'V-
<G
?!'"-<G !F %',P-<G B/'M !< ?!!M
$>/""-<G
P-CC-<G
B/'&-<G ;P
?/& !FF
&'C/ ;P
G,/= C>/CC-<G

MENDING:
Mending is the process %here the defects in the fa#ric from the
%ea$ing section are $isually inspect and manually remo$ed and
maintain the <uality of fa#ric. This department still follo%s the
con$entional method of doing things manually. Fa#rics are passing
through different ta#le li?e mending ta#les chec?ing ta#les and extra
mending ta#les. After correcting all remo$a#le faults fa#rics are
arranged in lot siBe according to re<uirement of pieces li?e export
domestic exclusi$e etc.
42
&'C/ ;P
G,/= C>/CC-<G
The process flo% of Mending is sho%n #elo%6

FINISING:
After ta?ing fa#rics from mending department the #atch %ise
arrangement is done in finishing department. The term finishing means
completing the manufacture of cloth #y surface treatment. Finishing is
an essential process for textile goods #efore they are put on the
mar?et. There are three types of finishing phases
=et
4#
G,/= P/,C>-<G
M/<"-<G
G/,= C>/CC-<G
F!?"-<G
Mending
Dry
1rey finish
The main o#jecti$e of finishing are67
To impro$e the appearance of the fa#ric that is ma?e it more
attraction or lustrous.
To impro$e the feel of the fa#ric.
To co$er faults in original fa#ric.
To increase the %eight of the fa#ric.
To impro$e the %ea$ing <ualities.
To ma?e sure fa#ric free from pills and soiling.
To impart special properties to the fa#ric for specific end uses.
To set the texture of certain fa#rics and ma?e others dimensionally
sta#le.
To produce stronger and more dura#le fa#rics.
To produce no$elty effects
The process flo% of finishing is sho%n #elo%
40
Batching
Super Finishing
TMT
Super Finishing
Pressing
Damping
Semi Perch
Shering
2
nd
Drying
Rope Opening
Rope Scouring /Resin
Singing
Shearing
Heat Setting
Resin
Prescouring
44
Finishing
FOLDING
After completion of finishing process the fa#ric transfer to folding
department here the full finished fa#ric comes from finishing
department is #eing folded. The first step of folding process is to ma?e
grey sample made for future use then samples are #eing matched %ith
the standard fa#ric sample from chhind%ada plant. After that the fa#ric
is chec? on perching machine for their <uality of finishing and any
defects %hich are left out. Here mending or correcting of faults are
done after that fa#rics is go for la# testing in that pilling and shrin?age
test are done normally for export <uality of fa#ric no% #oth #ac? side
as %ell as front side of fa#ric are inspected particularly in center to
sel$edge inspection and end to end inspection. 4n that #asis flags are
put on the fa#ric according to the faults.. After that indi$idual piece
%ise %eighting is done. After that paper pasting process is start in that
paper transfer is used for pasting on the folded or rolled fa#ric in
contains company@s name manufacturing site #lend information
%idth pac?age date and length. Then #rand tags are attached to
respecti$e fa#ric for their respecti$e #rand
45

G rey S am p l e M a i ng
St o rag e o ! Fa "r ic
# eig h ing
P acin g
Ta g $ t ta chi ng
P a pe r Tra ns! e r Pa sti ng
%a pp in g &Do m e sti c M a re t ' R ol li n g &( )po rt M are t '
F lag gi ng
Face * B a c sid e +nsp e cti o n s
% a" T est in g &( )p ort M ar e t F a" ric '
M e nd in g
F in i sh , he ing
Sa m ple M a t chin g

46
Folding
6AREOUSE AND DISPATC
After folding department fa#ric is transfer to %arehouse for final
storage then final pac?ing. The material is first di$ided into <uality
%ise shade %ise etc. %ith respect to ci$il export domestic.etc and
finally according re<uirements and order fa#ric are dispatch. &n
%arehousing fa#rics are issue through scanner from folding
department %hich read the #arcode on the tag of pac?ed fa#ric. A
particular length of fa#ric is cut from each <uality num#er to ma?e the
sample so that its rate and price could #e declared. 5ormally sample
siBe7''0 '(0 ')0 cm after that #oo?let ma?ing is done in that
collection of fa#ric pieces of (.+U(.+ inches each fa#ric pieces called
card there are (* cards in a #oo?let. Rolls and folded fa#ric are further
stapled in an opa<ue plastic co$er #y using stapling machine. Staple
fa#rics are dispatched from stoc?s to party. =arehouse manages to
search a particular piece num#er shade num#er <uality num#er and
other information of fa#ric from stoc?. Maximum stoc? capacity of
fa#ric is . lacs mtr.
47
MATERIAL ANDLING
Material handling is defined as mo$ement and storage of material at
the lo%est possi#le cost through the use of proper methods and
e<uipments.
The main o#jecti$es of material handling are
Lo%er unit material handling costs
Eontri#ute to #etter <uality #y a$oiding damage to products #y
inefficient handling.
&mpro$e the %or?ing conditions and greater safety in the mo$ement
of materials.
Reduction in manufacturing cycle time through faster mo$ement of
materials %hich reduce %or?7in7progress in$entory cost.
&n RA3M45D material handling e<uipments are used in $arious
Departments
SR.NO NAME OF TE DEPARTMENT MATERIAL ANDLING
ECUIPMENTS
' Scouring Duct !chute feed
system"
( 1rey7Eom#ing and Eon$erter Roller cans
To% trolleys
;allets
Top #ox trolleys
48
)
*
Dyeing
Recom#ing
Dyed top trolleys
Eheese creel
trolleys
Clectrically operated
Eranes
Roller cans
Finish top trolleys
Tractor7trailer
train!MCL"
;allets
+ Spinning Roller cans
Ereel trolleys
Do##in trolleys
, 3arn room Ereel trolleys
For? lift truc?s
Dand truc?s
Stac?er
- =arping Deam lifter trolleys
Heald shaft trolleys
Do##in trolleys
. =ea$ing 1aiting trolleys
Fa#ric #eam trolleys
/ Mending Folding fa#ric
trolleys
=ooden pallets
'0 Finishing Folding fa#ric
trolleys
'' Folding Trolleys
'( =arehouse Dand truc?s
59
Some of the miscellaneous handling e<uipments li?e pipe lines %hich are
closed tu#es that transport %ater air and steam.
SCM DEPARTMENT
S4::/D C8'&* M'*'+,F,*(
Definition6
&n Raymond SEM is the core Department %hich mainly deals %ith the
planning : control acti$ities of each plan. &t pro$ides lin? #et%een the
all other departments. 5o% a day SEM %or?s as o%ner of the
company. &t is a $alue streams for #usiness. &n Raymond SEM deals
%ith the follo%ing acti$ities.
'. Strategy : Analysis.
Management Reporting : Analysis
(. ;lanning ;rocesses
51
Supply Ehain ;lanning
). Eore ;rocesses
;rocurement : &n#ound Logistics
R Sales 4rders
R Ra% Materials
R Spare ;arts
R 4utsourcing Eapacities
Factory ;lanning : ;roduction
R Eapacity Dalancing
R Deli$ery Eommitments
R ;riority setting
R &nternal Follo% up
Sales : 4ut#ound Logistics
R =are House Stoc? Maintenance
R Deli$ery ;lanning
R 1ood Dispatching
*. Support ;rocesses
Financial : Eost Management
Maintenance : Cngineering
Nuality Management
Human Resources
SEM also focuses on the ci$il : export mar?eting. SEM is done these
acti$ities on the #asis of Ma?e To Stoc? : Ma?e To 4rder. Kapi SEM
has follo%ing 9ey Result Areas.
Eommitment to Sales
52
Timely Deli$ery
Ra% Material A$aila#ility
Maximum ;roduction #y using minimum Eapacity
Help ;roduction Departments to impro$e <uality
Kapi SEM recei$es yearlyOmonthly plans from the main THA5C Eentral
SEM. After that Kapi SEM analysis that plans and as per the
production capacity of each department they prepare Master
;roduction Schedule : Material Re<uirement ;lanning
They set the production target monthlyO%ee?lyOdaily #asis and those
targets are to #e C7 Mail to each department through SA; system. The
updates of $arious departmental Reports are C7Mail to the main THA5C
unit. Further more the re<uirement and transfer of ra% materials from
one department to the other department i.e. from fi#re to fa#ric is also
managed #y SEM.
ACCOUNT DEPARTMENT
INTRODUCTION:
This company has finance cum account department %hich is mainly
deal %ith all transactions li?e %ages salary expenditure ma?ing
Ehelan and in$oice all receipt and payments etc. all this acti$ity is
done in SA; system and through this system all accounting report
access at all locations of Raymond. All major financial decision is ta?en
#y THA5C head office.
5#
OBJECTIVES
To reduce cash transactions
To record and maintain all monetary transactions of unit in SA;
To pro$ide re<uired schedule for fund
To pro$ide necessary information to all internal and external
customers.
To pro$ide M&S report monthly to management for accurate decision
ma?ing
To prepare annual re$enue #udget for proper control
To create cost control a%areness #y pro$iding training
FUNCTIONS
$. A;;)4*(5 :'D'A/, F'*'+,F,*(
&n$oice Kerification
;ayment scheduling
Disclosure
Dan? reconciliation
Kendor reconciliation
Dudget
2. C'58 M'*'+,F,*(
Eash reconciliation
&4I reconciliation
Fund Management
Statutory ;ayment
1 A;;)4*(5 P'D'A/, M'*'+,F,*(
50
I*%)&;, %,-&E&;'(&)*
&n$oices are $erified against the purchase orders made. The <uantity
and <uality of the materials recei$ed as per the purchase order or not
is seen. &f materials are not according to the purchase order made then
amount is deducted and then payment is made. &n$oices are also
$erified for the duties charged or %hether EC5KAT credit is recei$ed or
not or %hether that material is excise a#le or not. ;ayment is only
made after the detail $erification of in$oice. &f the material sent is
rejected then <uantity rejected is deducted from the actual <uantity
and payment is made for the appro$ed material.
P'DF,*( S;8,74/&*+ 0 :-,:'-'(&)* )E C8,G4,
;ayment is made to the $endors as per the auto scheduling of
o$erdue in$oices.
V,*7)- R,;)*;&/&'(&)*
&f any payment is due e$en after the due date then the ledger #alances
is reconciled if money is not recei$ed #y the $endors.
D&5;/)54-,
Ac?no%ledgement from the
$endors is recei$ed #y the accounts Department. Accounts
department $erify a#out the payment made %hether it is recei$ed #y
the $endors or not through this ac?no%ledgement.
B'*3 R,;)*;&/&'(&)*
54
Dan? #oo? and pass #oo? is maintained is #y the accounts
department. Difference in #an? charges is reconciled #y the accounts
B47+,(
The expenses %hich are incurred for production the estimation of
these expenses is sent #y $arious plants to the accounts department.
After getting estimation from the entire plants #udget is prepared #y
the accounts department and sent to the head office for appro$al.
2. C'58 F'*'+,F,*(
A certain le$el of cash is maintained for %or?ing capital re<uirement.
The amount of cash maintained in the company should #e neither too
high nor too lo%. &f it@s too lo% then day to day acti$ities can #e
hampered and if it@s too high there is a ris?.

C'58 -,;)*;&/&'(&)*
Eash #alance is matched daily against the amount dis#ursed.
;erson to %hom amount is dis#ursed su#mits a $oucher as a proof of
the expenses made.
IOU -,;)*;&/&'(&)*
Any employee ta?es &4I for the office use or personal use. That
employee su#mits a $oucher for the amount spent and left money is
returned. This amount is also reconciled against the $oucher recei$ed.
55
F4*7 M'*'+,F,*(
C$ery department estimates the expense to #e incurred in the coming
month and gi$es this estimate to the accounts department. Some
statutory payments li?e electricity #ills %ater #ills also included in
these. Accounts department intimate this to head office and as? for
funds for these expenses.
At the end of e$ery month stoc? sho%n in SA; should #e matched %ith
the physical stoc?. Audit for that is conducted on any day in a month.
S('(4()-D P'DF,*(5

Statutory payments li?e 1CD #ills %ater #ills and CT; #ills are also
made #y the accounts department.

FINANCIAL IGLIGTS:
P'-(&;4/'-5 BSE NSE
5o. of Shares
/''(
*/*
'0+/,
(/)
Highest Share ;rice!Rs.&n Lacs"
)0).
/+ )0(
Lo%est ;rice Share!Rs.&n Lacs" ,..' ,-./+
Elosing Share ;rice as on )'.).0/
-,.*
+ -,.'+
Mar?et Eapitaliation as on )'.).0/ !Rs. &n
Lacs"
*,/(
, *,-*(
56
&his graph sho*s the continuous increase in the total assets of the last fi)e yearsE-t
indicates the company has good in)estments in oth fiFed and current assets as *ellE
-n 2998,company facing loss as per the calculation of profit efore taFE %e can see that in
2996, the company has more than 299 ?acs ,sE Profit efore taFE
&he reported net profit is good in last 0 yearEBut in current year 2998,the company facing
loss of more than 299lacsE &his happens ecause of the hea)y loss in eFport usiness and
due to recessionE
57
BALANCESHEET
58
69
P'-(&;4/'-
M
'-
;8
2>
$>
M
'-
;8
2>
>=
M
'-
;8
2>
>?
M
'-
;8
2>
>@
M
'-
;8
2>
>#
SOURCES OF
FUNDS :
Share Eapital
-./
01
-./
01
-./
01
-./
01
-./
01
Reser$es Total
.2.
../
30
.24
-3/
-4
.20
0-/
54
.22
56/
71
.2.
21/
3-
Total Shareholders
Funds
.2.
72/
5.
.2.
2-/
51
.20
51/
21
.20
3-/
.-
.2.
15/
56
Secured Loans
73-
/5-
1-1
/13
342
/46
3--
/1-
36-
/-1
Insecured Loans
653
/73
67-
/22
076
/72
224
/73
22.
/2
Total De#t
.22
32/
7.
.20
63/
47
17-
/7-
717
/-.
7-7
/11
Total Lia#ilities
226
23/
-2
226
72/
43
222
73/
46
22.
60/
77
.25
37/
12
APPLICATION OF
FUNDS :
1ross Dloc?
.27
.0/
64
.27
44/
-6
.20
63/
6.
.22
04/
40
.20
--/
70
Less 6
Accumulated
Depreciation
772
/51
74.
/-
-23
/11
330
/51
-77
/--
Less6 &mpairment
of Assets 4 4 4 4 4
5et Dloc?
564
/62
555
/46
7.5
/30
-7-
/43
-15
/47
Lease Adjustment 4 4 4 4 4
Eapital =or? in
;rogress
6./
-6
-2/
..
.0/
31
13/
-5
.3-
/43
&n$estments
15.
/75
111
/35
.24
67/
04
516
/67
70-
/-
Eurrent Assets
Loans : Ad$ances
&n$entories
216
/3
064
/6
025
/76
210
/--
0.5
/46
Sundry De#tors
25-
/53
046
/61
215
/15
2-1
/77
261
/67
Eash and Dan?
2-/
3-
6-/
1
2./
12
23/
-2
23/
40
Profit & loss Account
Particul
ars
Mar-
10
Mar-
09
Mar-
08
Mar-
07
Mar-
06
&5E4M
C 6
Sales
Turno$er
.20
34/15
.26
42/.-
.20
62/61
.20
4-/16
.20
64/63
Cxcise Duty

6/05 .6/4- .6/75 .3/35 24/02
5et Sales
.20
6-/34
.20
11/.4
.20
27/-5
.22
5./23
.20
24/.0
4ther
&ncome
.33/1
.
.../.
-
.67/3
.
.53/6
0
.47/1
7
Stoc?
adjustment
8
67/-2
2-/.
7
34/1
5
64/5
- .1/22
Total &ncome
.2636/
-5
.2323/
60
.232-/
45
.2327/
-6
.266-/
22
CT;C5D&TIR
C 6
Ra%
Materi
als
01./.
7
664/4
2
61./7
5
05./6
.
647/6
0
po%er : fuel
cost
15/-
-
15/1
6
12/.
3
13/0
0
50/1
.
Cmployee
Eost
265/7
.
23-/7
2
227/7
1
2.1/.
5
.55/-
6
4ther
Manufacturin
g Cxpenses
.-5/3
3
.55/7
2
243/-
3
.13/-
-
.55/-
6
Selling and
Administratio
n Cxpenses
2.0/1
6
20./5
0 2.7/2
.54/7
-
.32/2
-
Miscellaneou
s
Cxpenses
.20/-
5
602/3
1
15/2
7
.47/1
5
.20/1
5
Less6 ;re7
operati$e
Cxpenses
4 4 4 4/3. 4/7.
61
Eapitalised
Total
expenditure
.222
7/-2
.2-3
4/1.
.204
0/16
.2.7
1/70
.2.7
3/5-
4perating
;rofit
227/4
7
8
.23/0
1
222/2
3
061/5
.
274/2
-
&nterest 51/40 13/4. -4/. 67/.2 03/21
1ross ;rofit
.25/4
6
8
2.4/0
5
.-2/.
3
04./7
5
206/5
1
Depreciation .../0 11/1. 1./47 -2/5- 72/72
;rofit Defore
Tax .7/76 8255/2 1./41
201/1
0
.-2/2
-
Tax 4 4/3 86/5. 62/.. 27/-1
Fringe
Denefit tax 4 0/.3 0/62 2/73 0/31
Deferred Tax 87/02 80./0 .4/.3 81/.3 .4
Reported 5et
;rofit 23/4-
8
27./3
3 72/62
242/.
2 .2.
Cxtraordinar
y &tems .3/2.
822
2/46 02/.2 50/31 20/25
Adjusted 5et
;rofit 5/13 865/3. 64/0
.41/3
6 57/7.
Adjst. #elo%
5et ;rofit 4 4 4 4 4
; : L
Dalance
#rought
for%ard 33/.5
02-/7
6
271/1
5
.-7/.
7
.4-/4
.
Statutory
Appropria
tions 4 4 4 4 4
Appropriatio
ns 4 4 26/37 54/6 35/16
; : L
Dalance
carried
do%n
14/2
3
33/.
5
02-/7
6
271/1
5
.-7/.
7
Di$idend 4 4 .3/03 04/-5 04/-5
62
;reference
Di$idend 4 4 4 4 4
C<uity
Di$idend > 4 4 23 34 34
Carnings ;er
Share7
Init Eurr 6/41 4
../0
7
02/4
1
.5/4
.
Carnings ;er
Share!Adj"7
Init curr 6/41 4 ../07 02/41 .5/4.
Doo? Kalue7
Init Eurr
.5./4
5
.10/-
.
227/1
.
224/5
6
224/5
6
Cas !lo" Stat#$#nt
Particulars %ar &' %ar &( %ar &) %ar &* %ar +&
9et Pro!it Be!ore Ta)
..
-/3
4
.7
0/-
3
.
3
-/
5
5
1
-/
.
3
8
31
/7
3
9et ,ash From Operating
$cti:ities
.4
5/6
3
.3
7/3
-
3
7/
.
1
.
3/
3
2
.2
4/
36
9et ,ash &used in'/!rom
+n:esting $cti:ities
8
.3
6/1
-
8
21
7/0
3
8.56/22
8
.
0/
.
.
80-./.0
9et ,ash &used in'/!rom
Financing $cti:ities
0./
15
.6
./3
1
.
0
7/
-
2
8
-/
2
4
2-
3/
37
9et &decrease'/increase +n
,ash and ,ash (;ui:alents
8
.0/
3.
../
71
4/
3
1
8
0/
7
5
26
/5
7
Opening ,ash * ,ash
(;ui:alents
2-/
7-
.0/
23
2
3/
4
0
2
3/
-
.
2.
/1
2
6#
,losing ,ash * ,ash
(;ui:alents
.0/
23
23/
40
2
3/
-
.
2
./
1
2
6-
/1
4
!IXED ASSETS %ANAGE%ENT
!i,#- Ass#ts .D#finition/
Fixed asset is an asset held *ith the intention of eing used for the purpose
of producing or pro)iding goods or ser)ices and is not held for sale in the
normal course of usinessE
FiFed assets often comprise a significant portion of the total assets of an
enterprise, and therefore are important in the presentation of financial
positionE Furthermore, the determination of *hether an eFpenditure
represents an asset or an eFpense can ha)e a material effect on an
enterpriseGs reported results of operationsE
RATIO ANAL0SIS
T12#s of Ratios
$e)eral ratios, calculated from the accounting data, can e grouped into
)arious classes according to financial acti)ity or function to e e)aluatedE
&he parties interested in financial analysis are shortBterm and long term
creditors, o*ners and managementE $hort term creditorsH main interest is in
the liIuidity position or the short term sol)ency and profitaility of a firmE
$imilarly, o*ners concentrate on the firmHs profitaility and financial
conditionE Management is interested in e)aluating e)ery aspect of the firmHs
60
performanceE &hey ha)e to protect the interest of all parties and see that the
firm gro*s profitalyE -n )ie* of the reIuirements of the )arious users of
ratios, *e may classify them into the follo*ing four categoriesJ
1E ?iIuidity ratios
2E ?e)erage ratios
#E 'cti)ity ratios
0E Profitaility ratiosE
+. Li3ui-it1 ratios
-t is eFtremely essential for a firm to e ale to meet its oligations as they
ecome dueE ?iIuidity ratios measure the aility of the firm to meet its
current oligationsE -n fact, analysis of liIuidity needs the presentation of
cash udgets and cash and fund flo* statementsK ut liIuidity ratios, ut
estalishing a relationship et*een cash and other current assets to current
liailities, pro)ide a Iuick measure of liIuidityE ' firm should ensure that it
does not suffer from lack of liIuidity, and also that it does not ha)e eFcess
liIuidityE &he failure of a company to meet its oligations due to lack of
sufficient liIuidity, *ill result in a poor credit *orthiness, loss of creditorsH
confidence, or e)en in legal tangles resulting in the closure of the companyE
' )ery high degree of liIuidity is also adK idle assets earn nothingE &he
firmHs funds *ill e unnecessarily tied up in current assetsE &herefore, it is
necessary to strike a proper alance et*een high liIuidity and lack of
liIuidityE
64
&he most common ratios, *hich indicate the eFtent of liIuidity or lack of it,
are
2i3 Current ratio
2ii3 @uick ratio
Curr#nt Ratio
Current ratio is calculated y di)iding current assets y current liailitiesK
Current ratioL Current assets
Current liaility
Current assets include cash and those assets that can e con)erted in to cash
*ithin a year, such as marketale securities, detors and in)entoriesE Prepaid
eFpenses are also included in current assets as they represent the payments
that *ill not e made y the firm in the futureE 'll oligations maturing
*ithin a year are included in current liailitiesE Current liailities include
creditors, ills payale, accrued eFpenses, shortBterm ank loan, incomeBtaF
liaility and longBterm det maturing in the current yearE
&he current ratio is a measure of the firmHs shortBterm sol)encyE -t indicates
the a)ailaility of current assets in rupees for e)ery one rupee of current
liailityE ' ratio of greater than one means that the firm has more current
assets than current claims against themE
65
4uic5 Ratio
@uick ratio, also called acid test ratio, estalishes a relationship et*een
Iuick, or liIuid, assets and current liailitiesE 'n assets is liIuid if it can e
con)erted into cash immediately or reasonaly soon *ithout a loss of )alueE
Cash is the most liIuid assetE !ther assets are considered to e relati)ely
liIuid and included in Iuick assets are detors and ills recei)ales and
marketale securitiesE -n)entories are considered to e less liIuidE
-n)entories normally reIuire some time for reali(ing into cashK their )alue
also has a tendency to fluctuateE &he Iuick ratio is found out y di)iding
Iuick assets y current liailitiesE
@uick ratioL Current assets M -n)entories
Current liailities
N#t 6or5in7 Ca2ital Ratio
&he difference et*een current assets and current liailities eFcluding shortB
term ank orro*ing is called net *orking capital 2<%C3 or net current
assets 2<C'3E <%C is sometimes used as a measure of a firmHs liIuidityE -t
is considered that, et*een t*o firms, the one ha)ing the larger <%C has
the greater aility to meet its current oligationsE &his is not necessarily soK
the measure of liIuidity is a relationship, rather than the difference et*een
current assets and liailitiesE <%C, ho*e)er, measures the firmHs potential
reser)oir of fundsE -t can e related to net assetsJ
<%C ratio L <et *orking capital 2<%C3
<et assets 2<'3
66
8. L#9#ra7# Ratios
&he shortBterm creditors, like ankers and suppliers of ra* material, are
more concerned *ith the firmHs current detBpaying ailityE !n the other
hand, longBterm creditors, like deenture holders, financial institutions etcE
are more concerned *ith the firmHs longBterm financial strengthE -n fact, a
firm should ha)e a strong shortBas *ell as longBterm financial positionE &o
+udge the longBterm financial position of a firm, financial le)erage, or capital
structure ratios are calculatedE &hese ratios indicate miF of funds pro)ided
y o*ners and lendersE 's a general rule, there should e an appropriate miF
of det and o*nersH eIuity in financing the firmHs assetsE
&he manner in *hich assets are financed has a numer of implicationsE First,
et*een det and eIuity, det is more risky from the firmHs point of )ie*E
&he firm has a legal oligation to pay interest to det holders, irrespecti)e of
the profit made or losses incurred y the firmE -f the firm fails to pay to det
holders in time, they can take legal action against it to get payments and in
eFtreme cases, can force the firm into liIuidationE $econd, use of det is
ad)antageous for share holders in t*o *aysJ
2a3 &hey can retain control of the firm *ith a limited stake and
23 &heir earning *ill e magnified, *hen the firm earns a rate of return on
the total capital employed higher than the interest rate on the orro*ed
fundsE
&he process of magnifying the shareholdersH return through the use of det
is called Nfinancial le)erageO or Nfinancial gearingO or Ntrading on eIuityEO
>o*e)er, le)erage can *ork in opposite direction as *ellE -f the cost of det
67
is higher than the firmHs o)erall rate of return, the earning of shareholders
*ill e reducedE -n addition, there is threat of insol)encyE -f the firm is
actually liIuidated for non payment of detBholdersH dues, the *orst suffers
*ill e shareholdersB the residual o*nersE &hus, use of det magnifies the
shareholdersH earnings as *ell as increases their riskE &hird, a highly detB
urdened firm *ill find difficulty in raising funds from creditors and o*ners
in futureE Creditors treat the o*nersH eIuity as a margin of safetyK if the
eIuity ase is thin, the creditors risk *ill e highE &hus, le)erage ratios are
calculated to measure the financial risk and the firmHs aility of using det to
shareholdersH ad)antageE
?e)erage ratios may e calculated from the alance sheet items to determine
the proportion of the det in total financingE Many )ariations of these ratios
eFistK ut all these ratios indicate the same thingBthe eFtent to *hich the firm
has relied on det in financing assetsE ?e)erage ratios are also computed
from the profit and loss items y determining the eFtent to *hich operating
profits are sufficient to co)er the fiFed chargesE
:. Acti9it1 Ratios
Funds of creditors and o*ners are in)ested in )arious assets to generate sales
and profitsE &he etter the management of assets, the larger the amount of
salesE 'cti)ity ratios are employed to e)aluate the efficiency *ith *hich the
firm manages and utili(es its assetsE &hese ratios are also called turno)er
ratios ecause they indicate the speed *ith *hich assets are eing con)erted
or turned o)er into salesE 'cti)ity ratios, thus, in)ol)e a relationship et*een
sales and assetsE ' proper alance et*een sales and assets generally reflects
68
that are managed *ellE $e)eral acti)ity ratios can e calculated to +udge the
effecti)eness of asset utili(ationE >ere *e *ill take different acti)ity ratioJ
2i3 <et assets turno)er,
2ii3 &otal assets turno)er
2iii3 FiFed and current assets turno)er and
2i)3 %orking capital turno)erE
N#t ass#ts turno9#r
&he firm can compute net assets turno)er simply y di)iding sales y net
assetsE
<et assets turno)erL $ales
<et assets
-t may e recalled that net assets include net fiFed assets and net current
assets, that is, current assets minus current liailitiesE $ince net assets eIual
capital employed, net assets turno)er may also e called capital employed
turno)erE
' firmHs aility to produce a large )olume of sales for a gi)en amount of net
assets is the most important aspect of its operating performanceE ;nutili(ed
or underButilised assets increase the firmHs need for costly financing as *ell
as eFpenses for maintenance and upkeepE &he net assets turno)er should e
interpreted cautiouslyE &he net assets in the denominator of the ratio include
fiFed assets net of depreciationE &hus old assets *ith lo*er ook )alues may
create a misleading impression of high turno)er *ithout any impro)ement in
salesE
79
$ome analysts eFclude intangile assets like good*ill, patents etcE, %hile
computing the net assets turno)erE $imilarly, fictitious assets, accumulated
losses or deferred eFpenditures may also e eFcluded for calculating the net
assets turno)er ratioE
Total ass#ts turno9#r
$ome analysts like to compute the total assets turno)er in addition to or
instead of the net assets turno)erE &his ratio sho*s the firmHs aility in
generating sales from all financial resources committed to total assetsE
&otal assets turno)erL $ales
&otal assets
&otal assets 2&'3 includes net fiFed assets 2<F'3 and current assets 2C'3E
so 2&'L<F'PC'3
!i,#- an- Curr#nt ass#ts turno9#r
&he firm may *ish to kno* its efficiency of utili(ing fiFed assets and
current assets separatelyE
FiFed assets turno)erL $ales
<et fiFed assets
&he current assets turno)er isJ
Current assets turno)erL $ales
Current assets
&he use of depreciated )alue of fiFed assets in computing the fiFed assets
turno)er may render comparison of firmHs performance o)er period or *ith
other firms meaninglessE &herefore, gross fiFed assets may e used to
calculate the fiFed assets turno)er for a meaningful comparisonE
71
6or5in7 ca2ital turno9#r
' firm may also like to relate net current assets to salesE -t may thus compute
net *orking capital turno)er y di)iding sales y net *orking capitalE
<et current assets turno)erL $ales
<et current assets
;. Profita<ilit1 Ratios
' company should earn profits to sur)i)e and gro* o)er a long period of
timeE Profits are essential, ut it *ould e *rong to assume that e)ery action
initiated y management of a company should e aimed at maFimi(ing
profits, irrespecti)e of concerns for customers, employees, suppliers or
social conseIuencesE -t is unfortunate that the *ord QprofitH is looked upon
as a term of ause since some firms al*ays *ant to maFimi(e profits at the
cost of employees, customers and societyE /Fcept such infreIuent cases, it is
a fact that sufficient profits must e earned to sustain the operations of the
usiness to e ale to otain funds from in)estors for eFpansion and gro*th
and to contriute to*ards the social o)erheads for the *elfare of the societyE
Profit is the difference et*een re)enue and eFpenses o)er a period of time
2usually one year3E Profit is the ultimate QoutputH of a company and it *ill
ha)e no future if it fails to make sufficient profitsE &herefore, the financial
manager should continuously e)aluate the efficiency of the company in term
of profitsE &he profitaility ratios are calculated to measure the operating
72
efficiency of the companyE Besides management of the company, creditors
and o*ners are also interested in the profitaility of the firmE Creditors *ant
to get interest and repayment of principal regularlyE !*ners *ant to get a
reIuired rate of return on their in)estmentE &his is possile only *hen the
company earns enough profitsE
Generally, t*o ma+or types of profitaility ratios are calculatedJ
Profitaility in relation to sales
Profitaility in relation to in)estmentE
>ere *e *ill consider t*o profitaility ratioJ
2i3 ,eturn on in)estment and
2ii3 ,eturn on eIuity
R#turn on In9#st$#nt
&he term in)estment may refer to total assets or net assetsE &he funds
employed in net assets are kno*n as capital employedE <et assets eIual net
fiFed assets plus current assets minus current liailities eFcluding ank
loansE 'lternati)ely, capital employed is eIual to net *orth plus total detE
&he con)entional approach of calculating return on in)estment 2,!-3 is to
di)ide P'& y in)estmentE -n)estment represents pool of funds supplied y
shareholders and lenders, *hile P'& represent residue income of
shareholdersK therefore, it is conceptually unsound to use P'& in the
calculation of ,!-E 'lso, as discussed earlier, P'& is affected y capital
structureE -t is, therefore more appropriate to use one of the follo*ing
measures of ,!- for comparing the operating efficiency of firmsJ
7#
,eturn on -n)estmentL /B-&21B&3
&otal assets
!r
,eturn on -n)estmentL /B-&21B&3
<et assets
%here ao)e formula is for r#turn on total ass#ts and second formula is for
r#turn on n#t ass#ts. ,eturn on net assets is eIui)alent of return on capital
employedE
R#turn on E3uit1
Common or ordinary shareholders are entitled to the residual profitsE &he
rate of di)idend is not fiFedK the earnings may e distriuted to shareholders
or retained in the usinessE <e)ertheless, the net profits after taFes represent
their returnE ' return on shareholdersH eIuity is calculated to see the
profitaility of o*nersH in)estmentE &he shareholdersH eIuity or net *orth
*ill include paidBup share capital, share premium and reser)es and surplus
less accumulated lossesE <et *orth can also e found y sutracting total
liailities from total assetsE
&he return on eIuity is net profit after taFes di)ided y shareholdersH eIuity
*hich is gi)en y net *orthE -f a company has oth preference and ordinary
share capital, ,!/ should e calculated after deducting preference di)idend
from P'&, and using only the ordinary shareholdersH capitalE
70
,eturn on /IuityL Profit after taFes
<et *orth 2/Iuity3
,eturn on /Iuity indicates ho* *ell the firm has used the resources of
o*nersE -n fact, this ratio is one of the most important relationships in
financial analysisE &he earning of a satisfactory return is the most desirale
o+ecti)e of a usinessE &he ratio of net profit to o*nersH eIuity reflects the
eFtent to *hich this o+ecti)e has een accomplishedE &his ratio is, thus, of
great interest to the present as *ell as the prospecti)e shareholders and also
of great concern to management, *hich has the responsiility of maFimi(ing
the o*nersH *elfareE
&he returns on o*ners, eIuity of the company should compared *ith the
ratios for other similar companies and the industry a)erageE &his *ill re)eal
the relati)e performance and strength of the company in attracting future
in)estmentsE
>ere certain ratios are calculated according to the data of alance sheet of
last fi)e years of ,'=M!<" &/.&-?/, -<"-'E
,aymond &eFtile
Balance sheet
's on #1
st
March
74
2,sE -n lacs3

(00/7
'0
(00.7
0/
(00-7
0.
(00,7
0-
(00+7
0,
5)4-;,5 )E E4*7
58'-, 8)/7,-5H E4*7
shar capital
,')..0
.
,')..0
.
,')..0
.
,')..0
.
,')..0
.
share %arrant
(0.,./
+
(0.,./
+


reser$e : surplus
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0.*
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Loan Funds
secured loans
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',
+,,.,.
0+
+*,,-.
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unsecured loans
*)+-+.
(*
*-,('.
.+
)-*-(.
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(('(0.
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deffered tax lia#ility
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total V
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net #loc?
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capital %or? in progress
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'7%'*;,5
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Loans (-.(-. ()/)'. ()),'. ('-'+. '***(.
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,) )) ). ., 0,
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current lia#ilities
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net assets
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Ratio Anal1sis
Curr#nt ratio
Current ratioL Current assets
Current liaility
For the year 2995,
L 66911E18
#2887E17

L 2E##J1
For the year 2996, L 72089E48
#6106E45

L2E22J1
For the year 2997, L 80#02E#9
#4688E25
L2E5#J1
76
For the year 2998, L 87154E##
01919E74
L2E#8J1
For the year 2919, L 82859E72
#4567E45
L2E51J1
Int#r2r#tation of Curr#nt Ratio
!i7ur# so"in7 Curr#nt ratio
's a con)entional rule, a current ratio of 2 to 1 or more is consider
satisfactoryE CompanyHs current asset for the year 2995 *as ,s 66911E18
and a current liaility *as ,s #2887E17E $o the current ratio of a company
for the year 2995 is 2E##J1E
-n year 2996, companyHs current assets increase up to ,s 72089E48 *ith
increase in current liailities up to ,s #6106E45E $o the current ratio for the
company reduced to 2E22J1 in that yearE
-n year 2997, companyHs current assets increased up to ,s 80#02E#9 *ith
decrease in current liailities up to ,s #4688E25E $o the ratio for the year is
2E5#J1E
-n year 2998, there is an increase in current assets of a company up to ,s
87154E## and also increase in current liailities up to ,s 01919E74E $o the
ratio for that year reduced to 2E#8J1E
77
-n year 2919, there is a reduction in current assets of a company in
comparison of last year and it reduced ,s to 82859E72E But current liailities
of a company also reduced to ,s #4567E45E $o the ratio for the year 2919 is
increased to 2E51J1E
&his trend of current ratio interprets that there is no significant change in the
current ratio of a company during last fi)e yearsE -t sho*s that there is no
significant impact of current assets and liailities of a company on the fiFed
assets of a companyE
&he ideal current ratio for a company is 2J1E Company has a current ratio
more than 2J1 for all the yearsE -t interprets that company ha)e more
*orking capital than its actual reIuirementsE $o company should in)est in
fiFed assets rather than in)esting in such non performing *orking capitalE
Company can earn interest y in)esting such *orking capital in any other
in)estmentsE Company should in)est money in such *ay that it can get some
return on such in)estmentE
Total Ass#ts Turno9#r
&otal 'ssets &urno)er L sales
&otal assets
For the year 2995,
&otal assets turno)er L 1095#6
127420E72
L 1E98 times
For the year 2996,
&otal assets turno)er L 1#6086E16
121416E17
L 1E1# times
78
For the year 2997,
&otal assets turno)er L 105914E69
1#174#E81
L 1E11 times
For the year 2998,
&otal assets turno)er L 106668E67
15#258E62
L 9E81 times
For the year 2919,
&otal assets turno)er L 102695E07
144077E#8

L 9E82 times
Int#r2r#tation of n#t ass#ts turno9#r
fi7ur# so"s n#t ass#ts turn o9#r

&he firm can compute net assets turno)er simply y di)iding sales y net assetsE
<et assets turno)er may also e called capital employed turno)erE
89
For the year 2995, sales of a company *as ,s 1095#6 and the total assets of a
company for a year *as ,s 127420E72E $o the ratio for the year *as 1E98 timesE
-t interprets that company is producing ,sE 1E98 of sales for one rupee of capital
employedE
For the year 2996, sales of a company decreased to ,s 1#6086E16 ut the total
assets of a company also decreased to ,s 121416E17E $o the ratio for the year
increased to 1E1# timesE -t interprets that company is producing ,sE 1E1# of sales
for one rupee of capital employed in net assetsE
For the year 2997, sales of a company sho*s increased to ,s 105914E69 and also
increased in its total assetsE $o the ratio sho*s decreased to 1E11 times ecause
increase in total assets is higher in proportion of increase in salesE
For the year 2998, sales of a company increased to ,s 106668E67 and also increase
in total assets of a company to ,s 15#258E62E &he gro*th of total assets *as
higher in comparison of sales ecause of capital formation of assetsE $o there is
a reduction in ratio e)en there is an impro)ement in salesE $o the ratio for the
year *as 9E81E
For the year 2919, there is a decline in oth sales and total assets of a company to
,s 102695E07 and ,s 144077E#8 respecti)elyE But the reduction in sales *as
lo*er in proportion of reduction of total assetsE $o there is a slight increase on
ratio up to 9E82 times in the yearE
N#t Ass#ts Turno9#r
<et assets turno)er L $ales
<et assets
81
For the year 2995,
<et assets turno)er L 1095#6
292174

L 1E55 times
For the year 2996,
<et assets turno)er L 1#6086E16
218850E57
L9E5# times
For the year 2997,
<et assets turno)er L 105914E69
2#5470E11
L 9E52 times
For the year 2998,
<et assets turno)er L 106668E67
242128E17
L 9E48 times
For the year 2919,
<et assets turno)er L 102695E07
200555E84
82
L 9E47 times
Int#r2r#tation for n#t ass#ts turno9#r
!i7ur# so"in7 n#t ass#ts turno9#r
&his ratio sho*s the firmHs aility in generating sales from all financial
resources committed to net assetsE &he firm can compute net assets turno)er
y di)iding sales y net assetsE
for the year 2995, sales of a company *as ,s 1095#6 and net assets of a
company *as ,s 292174E $o the net assets turno)er for the company for that
year *as 1E55 times *hich interprets that company *as generating a sales of
,sE 1E55 for one rupee in)estment in fiFed and current assets togetherE
For the year 2996, sales of a company decreased to ,s 1#6086E16 and net
assets of a company increased to ,s 218850E57E -t creates a decrease in the
ratio of a companyE ,atio of the company for that year *as 9E5# timesE &his
*as happen mainly ecause of decrease in sales and increase of a net assetsE
For the year 2997, sales of a company increased up to ,s 105914E69 and net
assets of a company also increasedE But the ratio of a company slightly
8#
decline ecause the gro*th of net assets *as little more in proportion of
gro*th of salesE &he ratio for the year *as 9E52 timesE
For the year 2998, sales of a company increased to ,s 106668E67 and net
assets also increased up to ,s 242128E17E But same as pre)ious year ratio
decline to 9E48 timesE
For the year 2919, oth sales and net assets has reduced up to ,s 102695E07
and ,s 200555E84 respecti)elyE $o the ratio decline for this year up to 9E47
timesE
!i,#- an- Curr#nt ass#ts turno9#r
FiFed assets turno)er L $ales
FiFed assets
'nd
Current assets turno)er L $ales
Current assets
For the year 2995,
FiFed assets turno)er L 1095#6
70412

L 1E55
Current assets turno)er L 1095#6
66911E18
80
L 1E72
For the year 2996,
FiFed assets turno)er L 1#6086E16
65160E14
L 1E71
Current assets turno)er L 1#6086E16
72089E48
L 1E56
For the year 2997,
FiFed assets turno)er L 105914E69
6##19E76

L 1E88
Current assets turno)er L 105914E69
80#02E#9
L 1E44
For the year 2998,
FiFed assets turno)er L 106668E67
195114E20
L1E#8
Current assets turno)er L 106668E67
87154E##
L 1E41
84
For the year 2919,
FiFed assets turno)er L 102695E07
87295E1#
L 1E04
Current assets turno)er L 102695E07
82859E72
L 1E40
Int#r2r#tation of !i,#- an- Curr#nt ass#t turno9#r
&he firm may *ish to kno* its efficiency of utili(ing fiFed assets and current
assets separatelyE ' firm can compute fiFed assets turno)er simply y di)iding
sales y fiFed assets and can compute current assets turno)er y di)iding sales
y current assetsE
-n year 2995, the reciprocal of a companyHs fiFed assets turno)er ratio *as 9E59
and reciprocal of current assets turno)er *as 9E44E $o it implies that companyHs
fiFed assets is faster than current assets and for generating sale of one rupee, the
company needs respecti)ely ,sE 9E59 in)estment in fiFed assets and ,s 9E44 in
current assetsE
-n year 2996, current asset of a company eFceeds the )alue of fiFed assetsE '
current asset of a company *as ,s 72089E48 lacs *hile a fiFed asset *as ,s
65160E14 lacsE $o the reciprocal of a fiFed asset turno)er ratio *as 9E44 and
reciprocal of current assets turno)er ratio *as 9E59E -t implies that companyHs
current assets is faster than its fiFed assets and for generating a sale of one
85
rupee, the company needs respecti)ely ,sE 9E44 in)estment in fiFed assets and
,sE 9E59 in current assetsE
-n year 2997, trend *as also sameE Current assets of a company *as increased
up to ,s 80#02E#9 lacs and a fiFed asset *as further reduced to ,s 6##19E76
lacsE $o the reciprocal of a fiFed assets turno)er *as 9E49 *hile the reciprocal
of a current assets *as 9E54E so it implies that companyHs current assets is faster
than its fiFed assets and for generating a sale of one rupee, the company needs
respecti)ely ,sE 9E49 in)estment in fiFed assets and ,sE 9E54 in current assetsE
-n year 2998, oth fiFed and current assets of a company *ere increased ut
fiFed assets increased more than current assetsE $o the reciprocal of the fiFed
assets turno)er *as 9E62 and reciprocal of current assets turno)er *as 9E55E -t
implies that fiFed assets of a company is faster than the current assets of a
company and for generating a sale of one rupee, the company needs
respecti)ely ,sE 9E62 in)estment in fiFed assets and ,sE 9E55 in)estment in
current assetsE
-n year 2919, oth fiFed and current assets of a company reducedE But current
assets reduced more in proportion of fiFed assetsE $o the reciprocal of a fiFed
assets turno)er *as reduced to 9E58 and reciprocal of current assets turno)er
*as reduced to 9E54E $o it implies that fiFed assets of a company is faster than
current assets and for generating a sale of one rupee, the company needs
respecti)ely ,sE 9E58 in)estment in fiFed assets and ,sE 9E54 in)estment in
current assetsE

86
6or5in7 Ca2ital Turno9#r
%orking capital turno)er L $ales
<et current assets
For the year 2995,
%orking capital turno)er L 1095#6
0091#E91
L #E29 times
For the year 2996,
%orking capital turno)er L 1#6086E16
04#0#E9#
L #E9# times
For the year 2997,
%orking capital turno)er L 105914E69
4740#E90
L 2E08 times
For the year 2998,
87
%orking capital turno)er L 106668E67
46140E07
L 2E48 times
For the year 2919,
%orking capital turno)er L 102695E07
46272E25
L 2E08 times
Int#r2r#tation of "or5in7 ca2ital turno9#r
!i7ur# so"s "or5in7 ca2ital turno9#r
' firm may like to relate net current assets to salesE -t may thus compute net
*orking capital turno)er y di)iding sales y net *orking capitalE
For the year 2995, a sale of a company *as ,s 1095#6 and a current asset *as
,s 0091#E91E $o the reciprocal of the ratio implies that for one rupee of sales,
the company needs ,sE 9E#1 of *orking capitalE
For the year 2996, a sale of a company *as reduced to ,s 1#6086E16 and a
current asset *as increased up to ,s 04#0#E9#E $o the reciprocal of the ratio
*as 9E##E &he ratio increased ecause of the increase in current assets of a
companyE
For the year 2997, a sale of a company *as ,s 105914E69 *hich is more than
pre)ious year and current assets *as also more than pre)ious year that is ,s
4740#E90E so the reciprocal of the ratio *as 9E09 *hich implies that for one
rupee of sales, the company needs ,sE 9E09 of *orking capitalE
88
For the year 2998, a sale of a company increased to ,s 106668E67 ut the
current assets of a company reduced to ,s 46140E07E$o the reciprocal of the
ratio slightly decline to 9E#8E
For the year 2919, a sale of a company reduced to ,s 102695E07 and there is a
slight increase in current assets of a company *hich leads to little increase in
ratioE ,atio for the year is 9E09E
&he gaps for all these years are met from long term sources of funds of a
companyE
R#turn on In9#st$#nt
,eturn on -n)estment L /B-& 2 1B&3
&otal assets
For the year 2995,
,eturn on -n)estment L 15#69E07 29E63
292174
L 9E945 or 24E5:3
For the year 2996,
,eturn on -n)estment L 2#72#E27 29E63
218850E57
L 9E964 or 26E4:3
For the year 2997,
,eturn on -n)estment L 7158E55 29E63
199
2#5470E11
L 9E920 or 22E0:3
For the year 2998,
,eturn on -n)estment L 2B28644E953 29E63
242128E17
L B9E97# ?oss or 2B7E#:3
For the year 2919,
,eturn on -n)estment L 2990E#0 29E63
200555E84
L9E995 or 29E5:3
Int#r2r#tation of r#turn on in9#st$#nt
!i7ur# so"s r#turn on in9#st$#nt
&he con)entional approach of calculating return on in)estment is to di)ide P'& y
in)estmentE Firm can compute the return on in)estment *hich is yield y
in)esting in total assets simply y di)iding P'& y total assetsE Company pays
#9: taF on profit e)ery yearE
-n year 2995, company earns ,s 15#69E07 lacs profit efore taFE 'fter the payment
of #9: taFE Company has P'& of ,s 11048E## lacsE 'nd the total asset of the
company *as ,s 292174 lacsE $o the return on in)estment for the company for
the year 2995 *as 4E5:E
-n year 2996, P'& of a company *as ,s 15565E#9 lacsE 'nd the total asset of a
company *as ,s 2#5470E11 lacsE $o the company got 6E4: return on
in)estment for that yearE
-n year 2997, P'& of a company *as ,s 4617E65 lacsE &here *as a huge reduction
in the profit of a company ecause of recessionE &he total asset of a company
*as ,s 2#5470E11 lacsE Because of the reduction in profit, the return on
in)estment reakdo*n to 2E0: in that yearE
191
-n year 2998, effect of recession continues and ecause of that company faced loss
of ,s 29727E40 lacsE $o the ratio ecame negati)e for that yearE &he ratio for
that year *as B7E#:E
-n year 2919, company o)ercomes from the effect of recessionE Company has
made P'& of ,s 109#E90 lacsE 'nd the total assets of a company are ,s
200555E84 lacsE Because of the lo* profit and high rate of in)estmentE ,eturn
on in)estment is )ery lo* ut in positi)e natureE &he return on in)estment for
the year is 9E5:E
E3uit1 to !i,#- Ass#ts Ratio
/Iuity to fiFed assets ratio L &otal eIuity shares
FiFed assets
For the year 2995,
/Iuity to FiFed assets ratio L 5 1#7E97
70411E71
L 9E965 or 26E5:3
For the year 2996,
/Iuity to fiFed assets ratio L 51#7E97
65160E14
L 9E971 or 27E1:3
For the year 2997,
/Iuity to fiFed assets ratio L 51#7E97
6##19E76
L 9E970 or 27E0:3
192
For the year 2998,
/Iuity to fiFed assets ratio L 51#7E97
195114E20
L 9E947 or 24E7:3
For the year 2919,
/Iuity to fiFed assets ratio L 51#7E97
87295E1#
L9E95# or 25E#:3
Int#r2r#tation of E3uit1 to !i,#- ass#ts ratio
Many times, firm compute the eIuity on fiFed assets ratio to kno* its eIuity in
relation *ith fiFed assets simply y di)iding its eIuity shares y its fiFed assetsE
-f eIuity shares are lo* and fiFed assets is high than ratio is lo* and )iceBeB
)ersaE /Iuity of a company is same or unchanged from last 4 yearsE /Iuity of a
company from last 4 years is ,s 51#7E97 lacsE
For the year 2995, the fiFed asset of a company *as ,s 70411E71 lacsE $o the
ratio for the year *as 6E5 :E
-n year 2996, the fiFed asset of a company *as decreased up to ,s 65160E14
lacsE Because of such reduction, ratio increase up to 7E1:E
-n year 2997, the fiFed asset of a company *as further reduced to ,s 6##19E76
lacsE &his creates further impro)ement in ratio up to 7E0:E
-n year 2998, the fiFed asset of a company *as increased to ,s 195114E20 lacs
ecause of capital formationE &his leads to decline in ratio up to 4E7:E
-n year 2919, the fiFed asset of a company again reduced in comparison of
pre)ious year up to ,s 87295E1# lacsE $o ratio increase up to 5E#:E

19#