A STUDY ON COST AND COSTING

TECHNIQUES AT REID BRAIDS (INDIA)

HASSAN.

Internal Guide
Mr. Nikhil Gangadhar
Department of MBA, VVIMS
VVIET, Mysore

External Guide
Mr. Jagannath Rai
Admin, Manager
Reid Braids (India) Hassan

COMPANY PROFILE
Reid Braids India (RBI) is the biggest Narrow Fabric manufacturing company in
India. It manufactures Trims for Garment industries, Shoelaces for Shoe Industries & Retail
products for its clients.
Mission
To continually innovate within our company in order to improve operational
procedures, our products, and the working environment for our employees.
Competitors are M/S Balaji elastic Bangalore ,M/S Jain narrow fabric New Delhi
M/S Modilal fabrics Kanpur
Customers are Brich Haberdashery and craft Australia, IX International USA,
Gokaldas Exports Ltd India, Karthik Exports Sri Lanka

MC KINSEY'S 7's MODEL

STRATEGY
The maximum expansion to untapped geographical areas
Improvement in the existing products.
STRUCTURE
The functional structure is followed in the organisation
SYSTEMS
The company uses the Management information system in order to
maintain accounts.
STYLE
The company follows centralized style.

 STAFF
There are 300 employees in Reid Braids (India)
SKILL
Knowledge about handling machines, quality and safety.
SHARED VALUES
Behaving ethically in all our business and financial activities

SWOT ANALYSIS
STRENGTHS
Continuous production and
continuous process in all
departments.
Availability of labour at low
cost.

WEAKNESSES
Labor turnover rate is high.
Training and development
programs for employees cost
high and implementation of the
programs takes more time

OPPORTUNITIES
Large and relatively untapped
domestic market

THREATS
High competition in domestic
market

OBJECTIVES
The objectives of the study are to:
Find out what type of costing method is being followed in
Reid braids (India) and to classify and ascertain the costs
which are directly involved in production and to closely
examine the utilization of cost and elimination of wasteful
expenditure.

METHODOLOGY

In this study secondary data were collected

through the costing section in Reid Braids India,
cost sheets, costing manuals, annual reports, and
company website.

FINDINGS
Direct Labor Costs of Shoe Laces

DIRECT LABOUR COST

20000
15000
10000
5000
0

2008-09 2009-10 2010-11 2011-12

RECOMMENDATIONS
It is better to follow costing principles and cost statements
as per absorption costing as all manufacturing costs are
fully absorbed into finished goods.
The company should conduct an effective cost audit
which helps on adding reliability to cost statement and cost
data. It helps in detection of errors, Frauds and
irregularities, so management can make sound decisions on
the basis of correct and reliable cost data.
Effective training to be given to all unskilled operators at
all the stages.

THANK YOU