CHAPTER 1

INTRODUCTION AND DESIGN OF THE STUDY

INTRODUCTION:
The textile industrys predominance in the Indian economy is significant
contribution to industrial production, employment generation and foreign exchange earnings
during the last five years currently ,it adds about 14% to the industrial production and about
4% to the G.D.P. It provides employment to really 35 million people. Together with the
agriculture sector, it provides employment to over 90 million people. The contributing of this
industry to grass export earnings of the country is over 28%. It is the only industry which is
self reliant from raw material to the highest value added products like garments.
BEGINNING OF TEXTILE INDUSTRY IN INDIA:
M/S. Ferguson and company started the first cotton mills in india,known as
burial mill in calcutta in 1817.It comprised of 20,000 spindles and 100 looms .But it stopped
functioning in 1840 due to loose.
The second mill known as fort gloster mill was started in 1829 in the same city
Calcutta.this two turned out to be unsuccessful.
BEGINNING OF TEXTILE INDUSTRY IN TAMIL NADU:
In 1870 Abe well and to established a mill at rajamudsy.This mill was known
as the Guava cotton mills co.ltd ,it was first cotton mills in madras presidency ,but it was
failed.
The second mill, the southern india spinning and weaving co.ltd was started in
1874,this was also failed.
The third mill was started in 1875 known as choolai mill and another mill
ballery spinning and weaving company was started in 1882-1883.
In the south of madras the first cotton mill,the thirunelveli mills company was
founded in 1883,fallacious this within next 2 years,another mill was established in tuticorin
and within another 3 years the madras mils company ltd came into being at Madurai in
1929,all the three mills were amalgamating into one single unit called the madras mills
company ltd.

NATIONAL TEXTILE POLICY:

The last few years for the tremendous changes in the textile scenario.They
prepare the textile industry to meet the chellenge of integration with the world textile
market,the November aimed at creating new opportunities for growth with global market.

The objective of the policy namely,

i.

To develope a strong and vibrant textile industry capable are producing

quality cloth at acceptable price.

ii.

Contributing increasingly to the provision of sustainable employment

and economic growth of country.

iii.

Competing with confidence for an increased share of global market.

STATEMENT OF THE PROBLEM:

In the textile industry occupies very important position in our country .this
industry as a vital role to play and supply of essential commodity for entire population .its
progress and development is a greater one.
Even though there is so many modernisation and upgradation program
implemented by the government . it is necessary to the every concern to manage its financial
needs ,inflows and outflows to get profit.the analysis of financial position and to reduce the
risk involved in the business ,hence the researcher makes an attempt to analyse the financial
position of reliance textile.

OBJECTIVES OF THE STUDY:

The study is undertaken with the following objectives:
1.
2.
3.
4.

To study the share capital position of reliance textiles.

To know the profile of reliance textiles.
To evaluate the profitability position of reliance textiles.
To analyse the financial performance of reliance textile with the help
of trend analysis.
5. To offer suitable suggestion to improve the performance of the reliance
textiles.

SCOPE OF THE STUDY:

This study is with special reference to reliance textiles. The performance of
reliance textiles has been analysed with reference to the following aspects.
1)
2)
3)
4)
5)
6)
7)

Share capital
Fixed assets
Current assets
Sales
Gross profit
Net profit
Current liability

METHODOLOGY:

1. Period of study:
The study covers 5 years
2014-2015.

from the year 2010-2011 to the year

2. Collection of data:
The present study is maintained based on secondary data. The data
relates to the performance of the reliance textiles were collected from annual
reports, unpublished records ,audit report,etc.., from reliance textiles.
3. Data analysis:
The collected data are classified rearranged to suit the need for the
study. In order to analyse the financial performance of the reliance textiles,
growth rate and trend analyse has been used.

IMPORTANCE OF TEXTILES:

1. Covers the entire value chain.

2. Product development and research.

LIMITATIONS OF THE STUDY:

1) Through there are many textiles in india, only one textiles had been
taken for this study.
2) Period of study covers only 5 years.
3) This study mainly depends on secondary data that is annual reports of
reliance textiles.
4) The financial statement is influenced by personal judgement of
accountant in adopting any method for calculation purpose.

CHAPTER SCHEME:

This project report consist of five chapters

Chapter: I

Introduction and design of the study :

The first chapter deals with introduction, statement of the problem, objectives of the
study,methodology,limitationsof the study and chapter scheme.
Chapter :II

Review of literature :

The second chapter deals with review of literature, which will provide an idea in this
area of study.
Chapter:III

Profile of the company:

The third chapter consists of profile of the company.

Chapter:IV

Data analysis and interpretation:

The fourth chapter analysis the financial position of the company.

Chapter:V

Findings, suggestions and conclusion:

The fifth chapter narrates findings suggestions and conclusion of the study.

FINANCE:

Finance is regarded as the life blood of business enterprices.Finance is one of the

basic foundation of all kinds of economic activities.It is the master key which provides access
to all the sources for being employed in manufacturing and merchandising activities.It has
rightly been said that business needs money to make more money.
Financial management is concerned with procurement and use of funds.its main aim
is to use business funds in such a way that the earnings are maintained.it provides a
framework for selecting a proper course of action and deciding a viable commercial
strategy.the main objective of business is to maximise the owners economic welfare which
can be achieved by profit maximisation and wealth maximisation.