A Project Report On Ratio Analysis at The Gadag Co-Operative Textile Mill LTD

A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD EXECUTIVE SUMMARY: Financial statements provide summarized
view of the financial position and Operation of the company. Therefore, now a day it is necessary to all companies to know as well as to show the financial soundness i.e. position and operation of Company to their stakeholders. It is also necessary to company to know their financial position and operation of the company. In this report I made an effort to know the financial position of G.C.T.M HULKOTI. The Financial analysis of this report will show the Strength and weakness of the G.C.T.M. Financial analysis will help the firm to take decision.
Thus, we can say that, Financial Analysis is a starting point for making plans before using any forecasting and planning methods. The Study of Financial Performance Based On the Ratio Analysis at G.C.T.M
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD GADAG CO-OPERATIVE TEXTILE MILLS LTD. HULKOTI. INTRODUCTION
The textile industry holds significant status in the India. Textile industry provides one of the most fundamental necessities of the people. It is an independent industry, from the basic requirement of raw materials to the final products, with huge value-addition at every stage of processing. Today textile sector accounts for nearly 14% of the total industrial output. Indian fabric is in demand with its ethnic, earthly colored and many textures. The textile sector accounts about 30% in the total export. This conveys that it holds potential if one is ready to innovate. The textile industry is the largest industry in terms of employment economy, expected to generate 12 million new jobs by 2010. It generates massive potential for employment in the sectors from agricultural to industrial. Employment opportunities are created when cotton is cultivated. It does not need any exclusive Government support even at present to go further. Only thing needed is to give some directions to organize people to get enough share of the profit to spearhead development. Textile Co-operative industry is being an important traditional cottage industry plays a vital role in meeting the clothing requirements of the people. The handloom industry is meeting nearly 1/3 of clothing requirements of the countries population .the government of India assign to the handloom sector the task of increase in the production year by year.
Textile industry is constituted of the following segments
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Readymade Garments Cotton Textiles including Handlooms (Mill made / Power loom/ Handloom) Man-made Textiles Silk Textiles Woolen Textiles Handicrafts including Carpets Coir Jute The company Objectives are To satisfy customers by integrating their needs in the mill yarn. To sustain a mill of able and committed employees and provide opportunities for growth and development. To improve the process of managing mill affairs through proper planning, timely improvement of plan and performance review. To faster culture innovation with the application of new ideas and methods to solve the business problems. To provide the employment opportunities to Men& women of rural area Ancient time: Handloom is the oldest known form of making cloth by hand. The history of the textile industry is decentralized sector as the cottage industries dates back to the epic ages. In the Rig-Veda the needle used for the purpose sewing is called as SOOCHI &ARIVESHI the scissors BHURIJi , the wrap would MAYUKHthe shuttleVEMA and the weaver VAYITRI , VAMA & SIRI. A mantra in the rigveda states that it should wear the cloth woven by women at marriage occasion. As per Atharvanaveda the bridegroom should wear on the first night garments woven only by his newly wed wife. In maharastra, the garment filled with pearls is called as MANICHEERU; . the Buddhist, pali and taina literatures to emphasis Indias artistic weaving. COMPANY PROFILE Name of the company : Gadag Co-operative Textile Mill Ltd., Hulkoti. Babasabpatilfreepptmba.com 3
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Year of establishment : Status 1972 co-. operatives Societies act of 1959 Location Chairman Area of operation Export places Nature of business Membership Share capital No.of Departments No. of employees Ex-office members-1, Nominated by Govt-3 Storage capacity : 7500 million ton : Karnataka state, Gadag dist, Hulkoti. :This co-operative society registered under the
: Shri D.R.Patil Ex MLA, Gadag. : Haveri, Gadag & Dharwad. : New Delhi,Vietnam etc. : Production & sale of yarn. : 3021 co-operative societies : 817.71 Lakhs 8 departments. : 650
No. of board of directors : elected members -18,
Background of the company
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD The village Hulkoti has a population of 10000 comprising of various section of people and since long it has been the cradle cooperative moment in having the first primary credit cooperative society established in the east while Bombay state .The occupation of the village is mainly agriculture. The farmer and the farm laborers from a nucleus of this rural area, the main crop grown around Hulkoti is Jawar,Cotton Groundnut ,Chilly and Other pulses. Since there are no major irrigation Projects, dry land cultivation, is the only way out for the farming community .Agricultural produce particularly cotton,groundnut,Jawar etc where being marked to the tune of Rs 90 To 100 crores per Annum in and around Gadag.Prior to the emergence of the Gadag Co-operative Cotton sale society limited ,Gadag farming community was undesirably exploited by private tenders and commission agents .It is at this juncture, releasing the need for upliftment of much neglected farmers community and to better the lot of rural area ,Late Shri K.H.Patil,a son of soil and foreran Co-operator devoted fully for the establishment of co-operative network around Hulkoti providing various amenities and scope for development of farmers which went ahead against all odds both traditional and political,till he transformed vision into a reality. This Endeavour had transformed into worthy institution located on either side of karwar Bellary road between Hulkoti and Gadag.The main Hub of production and Processing of agro industries is farmer and farming community . After successfully setting up of Ginning and Pressing unit by the Gadag Co-operative Cotton sale society, the next ambition of our Cooperators, was to establish a textile mill of 25000 Spindles capacity which would consume the main agriculture produce by paying remunerative prices to cotton Growers and to save the farming community from the clothes of private tenders . It is with this ideal background .The Gadag Co- operative textile mill was established in the year 1972 with a project cost of Rs 220 Lakhs and was commenced its trial production in April 1973 .We have feather in the cap for having installed 25000 spindles capacity mill in a record time in the whole of India
MEMBERSHIP AND SHARE CAPITAL
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Being one the best-run Co-operative Mills in India, Having following membership and paid up share capital structure as on 31st March 2006. SL. No. 1 2 3 Total Category "A" Class (Individual/Societies) "B" Class (K.A.I.C.) "C" Class (State Govt) No. of Share Paid Holders 3019 1 1 3021 up Share
Capital Rs. 107.45 Lakhs Rs. 015.00 Lakhs Rs. 695.26 Lakhs Rs. 817.71 Lakhs
VISION , MISSION AND VALUES OF THE GADAG CO-OPRATIVE TEXTTILE MILL LTD .,HULKOTI
VISION To be a premier textile company with a clear focus to become globally competitive through growth & technology up gradation committed to excellence in quality service& Co-operatives. MISSION To purchase the creation of values for all its customers, employees, members (share holder) & society at large. COMPANY VALUES commitment a clarity respect for the individuals transparency honesty ethical conduct co-operative focus farmers oriented
THE GADAG CO-OPERTIVE TEXTILE MILL LTD., HULKOTI
ORGANISATION CHART
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Share Holders
Board of Directors
Chairman
Managing Director
P&I Dy. Manager Extension Officer
Production Dy. Manager Q.C. Officer.
Finance Dy. Manager Accounts Assistants
Administration Dy.
Security Sr.
Marketing Dy.
Manager Supervisor Assistants Jr. Supervisors
Manager Assistants
Helpers
Assistants
Helpers Helpers
Helpers
Worker
Board Of Directors
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Shri D.R.Patil and H.M Soppin are chairman of the Gadag Co-Operative Textile Mill Ltd Hulkoti respectively and others following these prestigious persons are board of directors of Gadag Co-Operative textile mill ltd, Hulkoti. Sl no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Shri T.D.Mundavad Shri C.B.Karikatti Shri V.R.Naganur Shri S.B.Balareddy Shri S.B.Bhasetti Shri S.C.Kanavi Shri S.C.Huilgol Shri G.N.Patil Shri A.S.Patil Shri R.B.Hosamani Shri B.H.Dyavanshi Shri S.K.Kuradgi Shri D.S.Odugoudar Shri R.Y.Kempalingegoudar Shri H.M.Soppin Shri V.B.Inamati Director Director Director Director Director Director Director Director Director Director Director Director Director Director Name Shri D.R.Patil Vice Chairman Shri R.M.Mulimani Director Director Designation Chairman
General Manager Babasabpatilfreepptmba.com 8
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD District Industries Centre Gadag Deputy Director of Handlooms And Textile Joint Registrar of Co-Operative Societies Shri T.Shantaveerappa (MD) Infrastructure Facilities Project Cost Land and Building Plant and Machinery Miscellaneous Contingency Working Capital Margin Free Operative Expenses Total Future Growth and Prospectus The Co-operative textile mill challenge to the society they have the capacity of increasing the quality and quantity of their products. The Co-Operative textile mill needs good specialized types of machines and modernization of machines. It challenges to the competed for market shares. The Government has also helped the mill by giving the financial assistance to improve the industry 33.71 Lakhs 177.70 Lakhs 24.08 Lakhs 6.00 Lakhs 22.00 Lakhs 15.00 Lakhs 278.49 Lakhs Director Director Director Inviters
Production Department Babasabpatilfreepptmba.com 9
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Production is a main function of company raw material into final products The Gadag co-operative mill is going to receive the ginned cotton (Cotton fibres are separated from the seeds) from the above mentioned suppliers. Before going to production of yarn classified the cotton on the basis of staple length of cotton,fibre and decides what count can be spun out of the cotton received. There are number of variety of yarn which are 10s,16s(Short staple) 18s,20s,40s,(medium staple) 50s,60s,62s,(long staple)and 60s,80s,100s,(super staple). OBJECTIVES 1) To produce quality production. 2) Reduction in waste of raw materials. 3) To maintain the production capacity of the machine. PRODUCTION PROCESS MIXING: The is going to mix up the different variety of cotton and made a homogeneous mixing and makes it a particular count. This process is called mixing. BLOWROOM: The second step is called cleaning. The kappas is going to cleaned because it contains leaf stir, sand mud and impurities. This process done through the Blow Room machine. CARDING: After this process takes place in which fiber is made parallel and hooks are formed in the carding are straightened.
RING FRAME: the next is simplex in this process final twist is inserted and wound on the bobbin (tubes) this is also called as Ring Frame.
REELING: after this simplex, Ring Frame takes places in this process next step is going to classifying on the basis of Reeling,. Babasabpatilfreepptmba.com 10
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD COMPETITORS TO G.C.T.M Modern days are the two day's of the competition. Where you go, in which ever field you enter there is competition; one must know how competition in the market makes it absolutely necessary for manufacturers to think of advertising. For new product, strategies and by doing all these to in areas the sales. These following companies are the competitors of the G.C.T.M. 1) 2) 3) Banahatti Co-operative Spinning Mill Ltd. Sangola Co-operative Spinning Mill Ltd. Farmers Co-operative Spinning Mill Ltd.
The C.G.T.M. face major competition from the above 3 competitors and it also face the competition from which those companies have national presence. But, our G.C.T.M. has been facing the competition through maintaining good quality off cotton yarn and also reasonable price, prompt service, advertisements, and also through maintaining good relation with the suppliers, consumers with society. Infrastructural Facilities: A good sophisticated building is there for the mill for working and transportation facility also provided for the workers i.e ,2 buses are roaming from the mill to a city.Good canteen facility with the cheap price and play ground for the workers is there.and also a library facility is there for the workers. Awards : All India spinning mill productivity first to India in 1978 to 1981
Infrastructure Facilities Project cost Land and building Plant and machinery 33.71 Lakhs 177.70 Lakhs Babasabpatilfreepptmba.com 11
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Miscellaneous Contingency Working capital margin Free operative expenses Total 278.49 24.08 Lakhs 6.00 Lakhs 22.00 Lakhs 15.00 Lakhs
Our Mill has another distinction of having established with a project cost of Rs 278.49 Lakhs, which was, met out in the following manner. Means of Finance Members of share capital Government share capital Team loan Total ADMINISTRATION DEPARTMENT 40.00 Lakhs 80.00 Lakhs 100.00 Lakhs 220.00 Lakhs
Administrative department play very important role in the organization for fits smooth running of the business and success of this company is mainly depending on the efficient administration of the G.C.T.M. This department looks after administrative functions such as payment of salaries, arrangement of meetings, and formation of policies etc, the general functions of this department are as follows.
Maintenance of files, records etc. up to date, collecting and presenting data in the form of useful information from the records. Implementing the organization systems, procedures and policies in a coordinated manner. Babasabpatilfreepptmba.com 12
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD
Ensuring smooth running of the office buy interfacing with the eternal agencies as required. For ex-payment of telephone bills, electricity, water supply bills etc. Maintenance of the office premises.
Providing required facilities. SHIFT INCHARGE: He is the person who works under the production manager. He assists which are done in shift GCTM has three shifts Viz 8 a.m. to 4 p.m. to 12 p.m. to 8 a. m. SECTION SUPERVISOR: He is the person who supervises the works done in the section he is the key. HUMAN RESOURCE DEPARTMENT
This department looks after the recruitment, selection and welfare of the employees. It also conduct and orientation programmes. Facilities given to employees are as follows.
Transportation Medical Canteen Uniform Provident fund Gratuity Babasabpatilfreepptmba.com 13
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Women's pregnancy allowance.
LABOUR WELFARE : Our mills has provided a gainful employment to 350 regular employees and about 200 trainees of 3 shifts basis. The employees are given Bonus up to 20% & residential accommodation on nominal rent. Besides the employees are given confessional transport facilities from Gadag to Hulkoti. They are also members of the employees credit Cooperative society for getting loans. Functions of HRD Department : Job design a. Job rotation b. Job enrichment Job analysis a. Job description b. Job enrichment Human resources planning Recruitment resources planning Recruitment and selection Placement and induction Performance appraisal Training and development
CLASSIFICATION OF THE WORK FORCE

Work force of the society shall be classified as under : 1) Permanent 2) Badli
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD 3) Trainee or apprentice RECRUITMENT PLANNING Maintaining an organization culture of outpace elements like mutual trust, human values, openness etc, requires a proper recruitment plan on the part of the human resources manager. Hence, recruitment plan is an important component of the human resource plan. It is recruitment which enables an organization to provide a substantially large pool of potential candidates for each join, so that adequate talents would be available for the organization on to select whenever needs arise. OBJECTIVES OF THE H.R.D. DEPARTMENTS To maintain high morale among the workers. To motivate the employees to contribute their maximum to the organizational goal. Creating the employment opportunity to the society. To take welfare care of labors. RECRUITMENT PROCEDURE: Interview panel of G.C.T.M. consist of 4 members who will responsible for selection of worker or employees. The interview panel will be same for every time. In case of lower level management direct recruitment is preferred. In case of top level management such as Accountants, Engineering, Managers etc. They need B.Com, B.E., M.B.A., M.Com, Etc., In case of production level G.C.T.M. will prefer diploma in electrical or diploma in mechanism or any Graduate who will be suitable for job. WORKING HOURS OF THE EMPLOYEES TIME SHIFTS
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD * 8.30am to 4.30pm * 4.30pm to 12.30am * 12.30pm to 8.30am 1ST Shift 2nd Shift 3rd Shift
Half an hour break is there between the working hours in each shift. HOUR OF WORK The hour of work for all employees shall be fixed FINANCE DEPARTMENT OBJECTIVES OF FINANCE MANAGEMENT To have permanent record of all the transaction for future reference. To know the result of business in terms of profit and loss. To know the financial position of the business. To know the progress of the business from year to year.
FUNCTIONS OF FINANCE DEPARTMENT To prepare a Trading & P&L account. To prepare Balance sheet. Maintenance of accounts is undertaken Rate fixing. Suppliers bill paying. Maintenance of cash and bank balance.
ACCOUNTING SYSTEM
Gadag Co-operative Textile Mill Ltd Finance, Every company needs carry on its business operations and to achieve its targets and finance is the lifeblood of the business. It is the foundation of every economic activities needs. A business requires finance at every stage. Finance is needed for bringing a business in no existence. It is required for financing.
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD The fixed capital is used for expansion and modernization of business and also for financing the working capital. The management of finance is necessary for very organization and financial management is managerial and activities or effort which is concerned with the ascertainment of finance and it is that aspect of management which is responsible for the acquisition of funds and their allocation. This management of finance is locked after by the finance and prepares the accounts. It has to plan for funds acquisition, funds allocation and acceptable levels of revenue generation. If surplus are generated then there funds have to be properly utilized so that they produce the maximum returns with safely, at the same time available for business purposes at the shortest notice. There are mainly 2 types of financial requirement: 1) 2) Long Term Acquisition fixed assets Short Tem Working capital needs
For both these requirements funds can be found the senior manager of finance and executive maintain key role in accessing the financial transaction.
PURCHASE DEPARTMENT The Cotton Purchase policy of the mill is designed in a way so as to provide an incentive price to the Cotton Growers. The Mill purchases its cotton at the open auction held by Co-operatives namely The Gadag Co-op. Cotton Sale Society. T.A.P.C.S.M. Society of Annigeri. Cotton brought in these Societies is graded by the A.P.M.C. Agricultural authority. Around 3000 Grower members and also 10200 other cotton Grower derive a significant economic benefits from our mills.
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Objectives: Experiment of cotton and yarn Observing the cotton and yarn Minimize the purchase cost Transportation (minimizing the transportation cost).
Suppliers:
CCI cotton co operation of India Maharastra cooperative federation Shanty textile Mumbai Baradia cotton cooperative Mumbai Pm kolhar Gokak CCI Auraghabad. S.T chuavan Gadag. Purchase committee: It includes 1) Managing director 2) General manager 3) Production manager 4) Quality controller 5) Cost department head ECONOMIC BENEFITS TO MEMBERS: The rates offered for cotton by our Mill in the Tenders at the Marketing Societies are generally higher than the rates available to the farmers at Tenders carried out at the premises of Private Commission Agent. A price incentive of Rs. 100 to Rs. 150 per quintal over the market rates are given to every member linked to the Share value of Rs. 100 each. Member's cotton is ginned and converted into yarn on behalf of them and after deduction of conversion cots; the profits are passed on to members concerned.
Local suppliers:
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Form 1982-83 onwards members availing of such scheme got up to Rs. 150 per quintal after sale of yarn. Extension advice to improve cotton production is given by Agricultural Science Foundation established by the Mill. Our mill has been arranging Workshops/Seminars by inviting Agricultural experts for the benefits of Farming Community of this area. Thus, we have taken care of cotton development in particular and Agricultural Development of this area, in general.
STORES DEPARTMENT
Stores Department is one which stores all the materials, equipments and spare parts etc. Which are needed in the signalization for its smooth running .
Objectives of the Stores Department: 1) 2) Concentrating towards smooth running of the production process. Facilitating all required equipments on time .
3) Reduction of Inventory equipments on time . 4) Working like a traffic signal to signalize to all equipments. 5) Proper maintenance of all equipments. This Stores Department is divided in to two sub departments they are: a) Materials stores b) General Stores. a) Material Stores: It is a sub department of the stores , which maintain the stock of raw material needed in the plant i.e. cotton , paper cones , bags . This department mainly concerned with storage of 30 days stock of raw material in the plant. b) General Stores: It is also a sub department of the stores which maintaining the stock of general material like ,paper ,files ,uniforms of workers ,shoes ,goggles, helmets, glows, cups, spare parts of machines , stationeries and other lubricants and packing materials.
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD These all materials are stored under bin system. In this department each material or item will be assigned a number to it which is called as Bin number. There are about 11,000 items are maintained in this department and all have been assigned in Nos. Bin number is a 9 digit number, which will help in recognizing the item very quickly and accurately. The first three numbers in Bin card will giving the information about which section . and the second 3 digit will gives information about which equipment and the last 3 digit will gives information of which item it is. The stores department is maintaining mainly two ledgers , they are:
1) Material Receipts Ledger. 2) Material Issued Ledger. At he time of each entry in the ledger they are quoting the date, item number quantity price / piece, total price Varieties of bags Varieties 0-1 socks P-P Jute Polithin bag 0-1 suppliers Mpower belting & elestomus Bangalore Shah cooperation Ahemdabad. New pack industry Belgaum. In the form of pack
ENGINEERING AND MAINTENANCE DEPARTMENT The department maintains stock of important spare parts of the machinery and looks after the accuracy of the machinery. Well qualified engineers are always ready to repair the defects in the machineries FUNCTIONS To look after the proper working of the machines. To take immediate measures in case of any defect in the machines. To keep the stock of the machines
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD MARKETING DEPARTMENT The Mill manufactures 10s, 14s 20s, 30s, 34s, 40s, 60s, 80s, 100s, 2/20s, 2/40s, 2/60s, etc., in the form of Hanks as well as Cones as per the prevailing market demand. Sale of hank yarn and cone forms 40:60 respectively. We have been fulfilling the Hank Yarn obligated stipulated by the Textile Commissioner, Government of India at the end of every quarter. The daily production of yarn is about 8,500 kgs. And Mills is working round the clock for all the seven days of the week. Special preference is selling yarn is given to Weavers Co-operative Apex Organizations and Karnataka Handloom Development Corporation. Export of yarn has been our priority Yarn is being exported to countries like Vietnam, South Korea, China and couple of European Countries. In last Six years, we have exported yarn worth Rs. 676.00 Lakhs. We are happy to inform that, we have fulfilled Export obligation as stipulated by the D.G.F.T., New-Delhi.
Sales will have mainly in 3 types Direct Sale Consignment Sale Through Depot Sale Sales Places: 1) 2) 3) National Handloom Development Corporation Karnataka Hand look Development Corporation Depot a. Coimbatore
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD b. Solhapur c. Ieachalkaranji d. Malegaon
PACKAGING OF YARN It is a process of converting to a product for protection hanks yarn are packing in the bale form cones yarn are packing form. The standard of bale is consists of 181.6 kgs.
Mode of Sales : In this organization orders are normally done through: 1) By phone 2) By their own sales depots and 3) By local sales agents.
RESPONSIBILITIES OF MARKETING MANAGER PROBLEMS Electricity Labor QUALITY CONTROL DEPARTMENT Billing Collection of amount Ordering
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD The main objective of the quality control department is to check the quality of the cotton and the cotton yarn I the firm. The step by step tests are conducted by the officers to meet this requirement. If any product does not pass through the quality standards than that is rejected. Even before dispatching the products they undergo testing and they must be approved by the quality department. THE STEPS OF TESTING Raw material testing I.e. cotton testing. Testing at first stage i.e. blow room stage. Testing at the carding level. Testing the yarn at processing level. Testing at the final stage.
OBJECTIVES Increasing customer satisfaction. Quick response to order fulfillment. Producing the quality products.
COMPETITORS Mill has competition with many competitors like Banahatti Co-operative spinning mill Mandya etc.
THE TOTAL WORKERS OF G.C.T.M * The strength of skilled workers * The strength of unskilled workers 350 300 23
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Total workers Waste elimination Row materials 20 count, 100 kg row materials (cotton) in the 100 kg of row materials 85 kg is pure 15 kg is waste row materials. Waste of 15 kg as under: Blow Room Carding Preparatory Hard waste Roving/silver 6 kg 5 kg 2 kg 1.5 kg 1 kg 15 kg 650
Inventory control system This is also followed daily and it is also computerized. Purchase: Variety wise row materials opening stock Add: purchase Total Closing stock xxx Sales: Variety wise finished goods Add: Production xxx Babasabpatilfreepptmba.com 24 xxx xxx
Less: Issued for consumption xxx
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Total Less: Sold Closing stock xxx xxx xxx
quality control of cotton yarn production bears distinct advantage for all whether producers or consumers, some of the important advantages to quality control one as follows. IMPORTANCE OF THE QUALITY CONTROL The brand products build up goodwill or image, which ultimately increase sales of G.C.T.M. yarn It helps the manufacturers in fixing responsibility of workers in the production process. Quality control also helps in minimizing the costs by increasing efficiency, standardization, working conditions at the G.C.T.M. It also help or enables the G.C.T.M. to know the cost of their product quite in advance which helps them in determining competitive prices of their product. Last but not the least; the G.C.T.M. can confirm whether the yarn manufactured by them is in accordance with standard set by the government. It further facilities the G.C.T.M. to take necessary actions to comply with the standard set.
Order of execution A committee consisting of seven directors and chairman / managing directors will meet every Saturday in the meeting after completion and after formalities committee will purchase the Raw materials (cotton) and sell the finished goods (yarn) the officials will execute the decisions made in the committee meeting and act accordingly. STAFF Classification of staff and Duties and Responsibilities of various groups of staff.
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD 1) Administrative staff 2) Technical and factory staff 1) Administrative staff Chairman The chairman of the Mill shall have an over all control over the day to day management of the Mill. He shall preside over the meetings of the Board of Directors and the General Body. The chairman of the Mill shall have general control over the affairs of the Mill. He shall exercise such of the powers of the Board as may be delegated to him form time to time.
Managing Director There shall be a Managing Director appointed by the Board of Directors. He shall be a professionally qualified experienced man in the textile industry. He shall be the Chief Executive Officer of the Mill. He shall be an Ex-officio, Member of the Board of Directors. He shall be responsible for the Executive Administration of the Mill subject to the control of the Board and chairman Secretary There shall be a Secretary to assist the Managing Director in the day - to day working of the society who shall have such powers as delegated by the board from time to time. To keep or cause to keep all accounts and registers required by the rules, to prepare all the vouchers, Balance Sheet and other documents required for the transactions of the Mill in, Administrative section.
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD purchaser He is the most important Administrative staff in the company. He purchases row materials for production of finished goods.
Seller He is also one of the staff in the company. By the name itself he sells finished goods effectively and efficiently.
2)
Technical & Factory staff
General Manager General Manager overall production performance of the Mill mainly machine utilization, productivity in each department men engage, power control, maintenance etc. Deputy Spinning Master There are two Deputy Spinning Master in the Mill. One should look up to Spinning point and another Deputy Spinning Master look past spinning.
Assistance Spinning Master There are two Assistance Spinning Master in the Mill. They are shift in chargers. There are three shifts First shift from 8.30 am to 4.30 pm. Second shift from 4.30 pm to 12.30 am. Third shift from 12.30 am to 8.30 am. Babasabpatilfreepptmba.com 27
Supervisors Supervisor is one of the technical staff in the Mill. He takes every work from every section.
SWOT ANALYSIS
Strength Opportunities STRENGTHS: 1)
Weakness Threats
Nearest to the raw materials source: Availability of the row material to the G.C.T.M. is very near, it is in such way that
is, the purchase cotton from around 3000 grower members of G.C.T.M. and the mill purchases its cotton at the open auction held by co-operatives namely The Gadag Cooperative cotton sale society, T.A.P.C.S.M. society of Annigeri and in Gadag A.P.M.C. this is result in less transport cost. 2) Less transport cost:
G.C.T.M. purchases row materials around the Gadag area, so carrying cost of the row material is very less.
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD 3) Goodwill: Around Gadag area there are less industries, and it has provided large employment opportunities to people. So it has good will in south Karnataka. 4) Satisfaction of consumer needs: G.C.T.M. has been satisfying the consumer needs.
5)
Highly quality: And also G.C.T.M. maintains high quality of cotton yarn.
1) Availability of cheap labor: WEAKNESS: 1) National presence is not there: In international market G.C.T.M. has been demand for its product, so it has less national presence. 2) Heavy excise duty: Government has fix up heavy excise duty on cotton yarn export of G.C.T.M. 3) Less working capital: The main weakness of G.C.T.M. is the less working capital for its day to day activities. 4) Electricity problem:
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD G.C.T.M. also facing the electricity problem. So it is also one of the barriers to continuous production. OPPORTUNITIES: 1) 2) Grab market in south Karnataka: G.C.T.M. has it maximum share in south Karnataka Increase in production capacity: Due to the installation of new technology, new machines, production capacity of the G.C.T.M. has been increasing . 3) 4) Increasing demand for yarn: Step by step demand for yarn and yarn products have been increasing. Bank finance: G.C.T.M. takes its financial assistance from K.C.C. Bank, N.C.D.C. Bank,. Bijapur, D.C.C. Bank 5) Employment Oriented: G.C.T.M. is the employment oriented unit THREATS: 1) Danger from the strong competitors: Danger from the strong competitors who are having national presence and spend a lot on promotion activities.
2)
Danger of loosing international market: It is because of other strong competition from the other standard companies who are
having a national presence. 3) Heavy excise duty:
G.C.T.M. is in loss. So excise duty on its sales and export is the major threat for G.C.T.M. Research Methodology Methodology: The methodology includes the personal interaction with the finance manager. Babasabpatilfreepptmba.com 30
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Selection of data: From the Annual Reports of the Company for last three years; i.e. from Annual Report for the year 2005-06 Annual Report for the year 2006-07 Annual Report for the year 2007-08 Period: The Study covers a period of three years data from 2005 -06, 2006-07.and 2007-08 to mean an Accounting year of the company consisting of 365 working days. Frame work Analysis for the purpose of analyzing the Liquidity Position of the company. The study make use of various accounting Ratios
INTRODUCTION
When we observed the financial statements comprising the balance sheet and profit or loss account is that they do not give all the information related to financial operations of a firm, they can provide some extremely useful information to the extent that the balance sheet shows the financial position on a particular date in terms of structure of assets, liabilities and owners' equity and profit or loss account shows the results of operation during the year. Thus the financial statements will provide a summarized view of the firm. There fore in order to learnt about the firm the careful examination of in valuable reports and statements through financial analysis or ratios is required. Meaning and Definition:Ratio analysis is one of the powerful technique which is widely used for interpreting financial statements. This technique serves as a tool for assessing the financial soundness of the business. The idea of ratio analysis was introduced by Alexander Wall for the first time in 1919. Ratios are quantitative relationship between two or more variables taken from financial statements. Ratio analysis is defined as. "The systematic use of ratio to interpret the financial statement so that the strength and weakness of the firm as well as its historical performance and current financial condition can be determined. Babasabpatilfreepptmba.com 31
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD In the financial statements we can find many items are co-related with each other For example current assets and current liabilities, capital and long term debt, gross profit and net profit purchase and sales etc. Whole taking managerial decision the ratio of such items reveals the soundness of financial position. Such information will be useful for creditors, shareholders, management and all other people who deal with company.
32
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Importance. As a tool of financial management ratio are of crucial significance. The importance of ratio analysis lies in the fact that it presents facts on a comparative basis and enables the drawing inferences regarding the performance of a firm. Ratio analysis is relevant in assessing the performance of a firm in respect of the following aspects: (i) liquidity position, (ii) long-term solvency. (Hi) operating efficiency, (iv) overall profitability, (v) inter-firm comparison, and (vi) trend analysis.
Liquidity Position With the help of ratio analysis conclusions can be drawn regarding the liquidity position of a firm. The liquidity position of a firm would be satisfactory if it is able to meet its current obligations when they become due. A firm can be said to have the ability to meet its short-term liabilities if it has sufficient liquid funds to pay the interest on its short-maturing debt usually within a year as well as to repay the principal. This ability is reflected in the liquidity ratios of a firm. The liquidity ratios are particularly useful in credit analysis by banks and other suppliers of short-term loans. As ratios provide a benchmark for companys against their own performance in industry. The company wants to study the ratios and compare its performance of past with the present performance with the help of ratio analysis, various items of financial statement that ensure their existence as well as their future progress
Research Problem:
33
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD To know the Financial Position of the company and its Liquidity Performance through comparing three years financial performance by applying different financial Ratios.
Purpose of the study: As it is very difficult to decide any inference from the mass of figures included in financial statements. So in order to judge accurately the financial health of the firm, it is generally regroup and analyze the figures as disclosed by these financial statement. The use of Ratio Analysis or Accounting Ratios enables conclusions to be drawn from the figures as to know the earning capacity, operational efficiency, and financial condition etc. of a concern. The study includes the calculation of different financial ratios. It compares three years financial statements of the company to know its performance in these different years. To know whether the company is growing or incurring losses or it is stagnant in its performance.
Objectives of the study:
34
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD 1. Main Objective is to study the different ratios used in Gadag co operative textile mill 2. To know the mills financial performance based on ratios. 3. To find out the companies efficiency based on past and present profitability ratios 4. To study the liquidity position of the company. To improve its future performance by analyzing its financial statements
DATA COLLECTION METHOD:
1. PRIMARY DATA: The information is collected from the personal

interaction with the financial managers of Gadag co-operative textile
2. SECOUNDARY DATA: This is been is collected through mills ANNUAL

REPORTS, & WEBSITES.
MEASUREMENT TECHNIQUE / STATISTICAL TOOLS: Accounting Ratios.
35
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Financial statements of the company.
ANALYTICAL TECHNIQUE: Statistical technique used for calculation of ratios is in terms of percentage.
LIMITATION OF THE STUDY: The study is done only on the Balance sheet and profit and Loss A/c Study is based on information provided by the company. The limitation of ratio analysis is itself a limitation in achievement the set objective.
Meaning and Definition Ratio analysis is one of the powerful techniques which are widely used for interpreting financial statements. This technique serves as a tool for assessing the financial soundness of the business. it can be used to compare the risk and return relationship of firms of different sizes. The term ratio refers to the numerical or quantitative relationship between two items/ variables. The idea of ratio analysis was introduced by Alexander Wall for the first time in 1919. Ratios are quantitative relationship between two or more variables taken from financial statements. Ratio analysis is defined as, the systemic use of ratio to interpret the financial statement so that the strength and weakness of the firm a well as its historical performance and current financial condition can be determined.
36
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD In the financial statement we can find many items are co-related with each other for example current assets and current liabilities, capital and long term debt, gross profit and net profit purchase and sales etc Importance of the ratio analysis As a tool of financial management, ratios are of crucial significance. The importance of the ratio analysis lies in the fact that it presents facts on a comparative basis and enables the drawing of inference regarding the performance of a firm. The ratios which i studied about are Liquidity ratio 1.Current ratio 2.Quick ratio 3.Inventory/Stock turn over ratio 4.Gross profit ratio 5.Net profit ratio 6.Working capital turnover ratio 7.Debtors turnover ratio 8.Debt collection period
Liquidity Ratio: The importance of adequate liquidity in the sense of the ability of a firm to meet current /short term obligations when they become due for payment can hardly be overstressed. The liquidity ratios measure the ability of the firm to meet its short-term obligations and reflect and the short-term financial strength/solvency of a firm.
37
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Current Ratio: The current ratio is the ratio of current assets to the current
liabilities .It is calculated by dividing current assets by current liabilities. The current ratio of total current assets to total current liabilities.
Current Ratio = Current Assets / Current Liabilities
Year
Current assets
Current Liabilities
Ratio
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
117291902 119869315 138949815 138554890 126873621
72046325 68946971 77335112 69425372 72678933
1.62 1.73 1.79 1.99 1.74
38

CURRENT RATIO 2.5 2 1.5 1 0.5 0 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Interpretation: The working capital of G.C.T.M is good. Because current assets are doubled compared to the current liabilities. And the ratio called to be standard. .
Quick ratio:
39
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD It is a measure of liquidity calculated dividing current assets minus inventory And prepaid expenses by current liabilities . Quick ratio= Quick assets Quick liabilities
Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Quick assets 64343512 66826151 76593359 80483135 80584499
Quick liabilities 59498988 68946971 77335112 69425372 72678933
Ratio 1.08 0.96 0.99 1.16 1.11
40

Quick ratio
1.4 1.2 1 0.8 0.6 0.4 0.2 0 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Interpretation: The quick ratio of 1:1 is satisfactory. The company is having good Liquidity. That is in the years of 2004-2005,2007-2008,2008-2009 I,e 1.08,1.16,1.11 respectively.
41
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Inventory/Stock turn over ratio: The ratio indicates how fast inventory is sold. A high ratio is good from the viewpoint of liquidity and vice versa.. The cost of the goods sold can also be computed as net sales less gross profit. The average inventory is computed as the simple average of the opening stock and closing stock of the inventory. This ratio indicates number of times inventory is replaced during the year. In case of seasonal industries, the average can be computed by taking simple average for opening stock of a month for a year, which will smoothen out fluctuating in the inventory. In some cases if the data is not easily available, then this ratio can be calculated by dividing the net sales by closing inventory. Formula: Inventory turnover ratio= cost of goods sold/average stock Cost of goods sold = op.stock + pur + direct exps cl. Stock Average stock= op.stock +cl.stock/2 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 . Cost of goods sold 267396134 215622553 227364007 263436840 252689320 Average stock 46596794.5 46438443.5 51082152 53337453.5 44985614.5 Ratio 0.57 4.64 4.45 4.93 5.62
42
INVENTORY TURNOVER RATIO 6 5 4 3 2 1 0 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Interpretation: The inventory turnover ratio of the company is satisfactory because the ratio is go on increasing year by year from 2004-2005 to 2008-2009
43
Gross profit ratio: It is ratio of Gross profit to net sales expressed as percentage. It shows the relationship between gross profit and sales. Gross profit/ sales*100
Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
G/P 2536378 15767889 27291869 10816538 4049865
Sales 269932512 231390442 254655866 274253348 256739185
Ratio 0.93 6.81 10.71 3.94 1.57
GROSS PROFIT RATIO

12 10 8 6 4 2 0 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
44
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Interpretation: The gross profit ratio increased year by year I.e. 0.93, 6.81,10.71 for the financial years of 2004-2005,2005-2006,2006-2007
NET PROFIT RATIO: It is ratio of Net profit to net sales expressed as percentage. It shows the relationship between Net profit and sales. Net profit/ sales*100
Year
Net Profit
sales
Ratio
45
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 -7733598 -228728 7421223 4449324 -13165013 269932512 231390442 254655866 274253348 256739185 -2.86 -0.098 2.91 1.62 -5.12
NET PROFIT RATIO 4 2 0 Year -2 -4 -6 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Interpretation: By analyzing the company financial statements it is recovering losses in the year 2007-08 but it is not possible in the year 2009
46
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD The above chart shows that the company is facing heavy loss in the year 2009.beacuase the reasons behind this is one is the previous year losses and also the expenses are increased year by year
Working capital turnover ratio: It represents the excess of current assets over current liabilities. It is a measure of liquidity calculated by subtracting current liabilities from current assets. : sales/net working capital
Year 2004-2005
Sales 264624507
Net working capital 45245577 50922344 61614703 69129518 54194688
Ratios 5.84 4.49 4.06 0.37 4.47 47
2005-2006 228943400 2006-2007 250490529 2007-2008 2008-2009 262156033 242486231
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD .
WORKING CAPITAL TURNOVER RATIO

7.00 6.00 5.00 4.00 3.00 2.00 1 .00 0.00 year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Interpretation:
48
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD The ratio is increased in 1st financial year i.e. in the year 2004-05 is at 5.84, and in the year 2005-06 is at 4.49. But in the year 2006-07 it decreases to 4.06.But it is quit normal and it is negligible. This ratio indicates that working capital has been effectively utilized.
Debtors turnover ratio Debtors constitute an important constituent of current assets and therefore the quality of debtors to great extent determines that firms liquidity
Debtors turnover = Sales /debtors
Year 2004-2005 2005-2006
credit sales 269932512 231390442
average debtor 35371142 43475086 49449732 49515187.5 51356537
Ratios 7.63 5.32 5.14 5.53 4.99
2006-2007 254655866 2007-2008 2008-2009 274253348 256739185
49
DEBTORS TURNOVER RATIO

9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Interpretation: The ratio increases in the year 2004-05 is at 7.63, which decreases to 5.32, 5.14, in the year 2005-06, 2006-07. But in the year 2007-08 it decreases to 5.53, 4.99.. It indicates that debts are being collected more promptly.
50
Debt collection period This ratio indicates the extent to which the debts have been collected in time. It gives the average debt collection period. The higher is the turnover ratio and shorter is the average collection period the better is the trade credit management and the better is the liquidity of debtors, as short collection period and high turnover ratio imply prompt payment on the part of debtors. On the other hand, low turnover ratio and long collection period. Debtors Collection Period = No. of days __________ DTR
Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
DAYS 365 365 365 365 365
Debtors ratio 7.63 5.32 5.14 5.53 4.49
turnover Ratio 47.83 68.60 71.01 66.00 73.14
51
DEBT COLLECTION PERIOD

80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 year
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Interpretation: The debt collection period is not satisfactory. The standard period of collecting debt is 30 days. Within 30 days the debt to be collected but the mill has taken more time. It affects all the current assets.
52
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD FINDINGS , SUGGESTIONS & CONCLUSION FINDINGS:
1) The debtor turnover ratio is good. It shows the collection of debtors is very prompt. 2) The current ratio of the company has been increased from 1.62 to 1.99, from the 2004to 2008. 3) The quick ratio has been increased by years i .e. 1.08, 1.11, 1 .16respectively from 2005, 2008& 2009 & last year it was constant i.e. 1. It shows that companys liquidity position is good, so it is favorable to the company
4) The inventory ratio indicates how fast inventory is sold .A high ratio is good from the viewpoint of liquidity. 5) The working capital ratio have increased in the financial year 2004-05 I.e. 5.84 & decrease in the next 2 years. 6) Net working capital is a measure of liquidity; inadequate working capital is the first sign of financial problems for a firm.
53
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD SUGGESTION . The firm should try to bring them more professionalism. From the study it is found that there is lack of periodic review & analysis which is leading to inefficient utilization of resources & thus loss. Therefore it is suggested that the firm should conduct quarterly analysis. So that the problems can be amended in time.
54
A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD Conclusion Financing is the backbone of the progress of any company. A Ratio gives The clear picture of financial condition of the company. The areas which were assigned to me were all key areas of the finance Divisions which also include different departments & functions
. . ANNEXURE
THE GADAG COOP. TEXTILE MILL LTD.HULKOTI. TENTATIVE BALANCE SHEET AS ON 31.3.2009 Babasabpatilfreepptmba.com 55
LIABILITIES AUTHORISED SHARE CAPITAL Share capital Rehabilitation Fund(BGK) Share Suspense Reserve Fund 0ther Funds Modernization Fund Subsidy
Rs
Ps
ASSETS
5,56,00,000.00 8,17,73,700.00 1,00,00,000.00 500.00 1,29,45,559.76 17,01,97,970.23 10,00,000.00 20,35,400.00
BORROWINGS(A and B) (A)K C C Bank Ltd, LOAN (B)N C D C Loan(Modernization) Deposits Current Liabilities Bonus Provision Payment Reserve for Bad & Doubtful Debts Other payables
2,62,50,000.00 3,68,00,000,00 40,20,383.00 5,24,86,226.29 12,27,535.00 1,02,00,000,00 47,44,788.75
Rs Ps Cash in Hand 27,094.00 Cash at Bank 1,93,46,309.87 F.D.with Banks 2,75,077.54 Investments 1,24,42,533.00 Deposits 40,52,950.00 Sundry Debtors 5,10,03,132.19 Loan to F C S M...Hulkoti 85,00,000.00 Pre-University College 2,55,296.95 Advances 48,58,427.87 Fixed Assets(Land) 1,23,187.00 Buildings 1,56,72,362.49 Equipments(Old) 15,77,875.91 Equipments( Modernization) 77,40,422.00 Plant & Machinery 12,52,74,234.40 Library(Books) 1,01,893.31 Furnitures & Fixtures 18,42,166.61 Rehabilitation A\c (BGK) 60,63,048.72 Other Receivables 10,21,508.00 Vehicles 16,18,814.00 Closing Stock(stores& packing) 71,03,034.54 Stock as per Mfg A\c 1,59,36,750.00 Stock as per TR A\c 2,32,49,338.00 Previous years loss 10,55,96,206.44 9,24,31,193.39 Loss April 08 to 1,31,65,013.05 March 2009
41,36,81,663.03 TOTAL TOTAL
41,36,81,663.03
BIBILOGRAPHY FINANCIAL MANAGEMENT: M Y KHAN AND JAIN
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD FINANCIAL MANAGEMENT: I M PANDEY
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58
59
60
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BIBILOGRAPHY Financial management Financial management M.Y. KHAN & P.K JAIN I.M.PANDEY
1) . .
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A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD EXECUTIVE SUMMARY: Financial statements provide summarized

Textile industry is constituted of the following segments

No. of board of directors : elected members -18,

Background of the company

MEMBERSHIP AND SHARE CAPITAL

THE GADAG CO-OPERTIVE TEXTILE MILL LTD., HULKOTI

P&I Dy. Manager Extension Officer

Production Dy. Manager Q.C. Officer.

Finance Dy. Manager Accounts Assistants

Manager Supervisor Assistants Jr. Supervisors

General Manager Babasabpatilfreepptmba.com 8

Production Department Babasabpatilfreepptmba.com 9

A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD

Transportation Medical Canteen Uniform Provident fund Gratuity Babasabpatilfreepptmba.com 13

CLASSIFICATION OF THE WORK FORCE

Less: Issued for consumption xxx

Technical & Factory staff

A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD

Strength Opportunities STRENGTHS: 1)

having a national presence. 3) Heavy excise duty:

Objectives of the study:

DATA COLLECTION METHOD:

1. PRIMARY DATA: The information is collected from the personal

2. SECOUNDARY DATA: This is been is collected through mills ANNUAL

MEASUREMENT TECHNIQUE / STATISTICAL TOOLS: Accounting Ratios.

Current Ratio = Current Assets / Current Liabilities

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

117291902 119869315 138949815 138554890 126873621

72046325 68946971 77335112 69425372 72678933

1.62 1.73 1.79 1.99 1.74

A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD

Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Quick assets 64343512 66826151 76593359 80483135 80584499

Quick liabilities 59498988 68946971 77335112 69425372 72678933

Ratio 1.08 0.96 0.99 1.16 1.11

A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD

A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD

INVENTORY TURNOVER RATIO 6 5 4 3 2 1 0 Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD

Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

G/P 2536378 15767889 27291869 10816538 4049865

Sales 269932512 231390442 254655866 274253348 256739185

Ratio 0.93 6.81 10.71 3.94 1.57

GROSS PROFIT RATIO

NET PROFIT RATIO 4 2 0 Year -2 -4 -6 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Net working capital 45245577 50922344 61614703 69129518 54194688

Ratios 5.84 4.49 4.06 0.37 4.47 47

2005-2006 228943400 2006-2007 250490529 2007-2008 2008-2009 262156033 242486231

A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD .

WORKING CAPITAL TURNOVER RATIO

Debtors turnover = Sales /debtors

Year 2004-2005 2005-2006

credit sales 269932512 231390442

average debtor 35371142 43475086 49449732 49515187.5 51356537

Ratios 7.63 5.32 5.14 5.53 4.99

2006-2007 254655866 2007-2008 2008-2009 274253348 256739185

A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD

DEBTORS TURNOVER RATIO

A Study on RATIO ANALYSIS AT THE GADAG CO-OPERATIVE TEXTILE MILL LTD

Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

DAYS 365 365 365 365 365

Debtors ratio 7.63 5.32 5.14 5.53 4.49

turnover Ratio 47.83 68.60 71.01 66.00 73.14