MAIN OBJECTIVE:➢ To Study the Fixed Assets Management System using At Raymond Limited.

The project report includes the information regarding the company Fixed Assets Data, of Raymond Ltd. (additional)


For Analysis purpose, different charts and other observation data has been studied, through which I came out with the interpretation for my project.




SR No. 1 2 3 4 5 6 7 8

Background of the company Vision, Mission and Values Company Profile Group Companies Joint Ventures Brand Portfolio Fabric Outlines Plant Details



9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 SWOT Analysis Organization Structure Milestones Technological Breakthrough Overview of other Departments Production Department General Store and Commercial Department Supply Chain Management Department Account Department Project Report FIXED ASSETS Introduction 2 Role of other functional Department 4 .

9 3 0 3 1 3 2 3 3 Analysis & Findings (Graphical Presentation) Recommendation Conclusion Bibliography 5 .

3. cutting tools. agri tools & auto components. Aviation: Raymond ltd is one of the first co-operate house in India to launch Air charter service in India in 1996 and since then it has been always a way ahead of Raymond Aviation. Engineering: J. hand tools.BACKGROUND OF THE COMPANY The Raymond Group was incorporated in 1925. Textile: With a capacity of 33 million meters in wool and wool blended fabrics. RAYMOND deals in mainly three sectors: 1. 2.Files & tools and Ring Plus Aqua are the group companies that are engaged in the manufacture of precision engineering product such as steel products. Raymond commands over 60% of market share in worsted suitings in India & ranks amongst the first four fully integrated manufactures of worsted 6 .K. transformed from being an Indian textile major to being a global conglomerate. and within a span of a few years.

Today. (Jeanswear) and Celebrations Apparel Ltd.8 micron. the finest fabrics. occasions and styles. (Shirts). the Raymond group is vertically and horizontally integrated to provide the customers total textile solutions.from wool to wool blended worsted suiting to specialty ring denims as well as high value shirting. After making a mark in textiles. Ever Blue Apparel Ltd. they always choose the path untraded . the Super 230s made from the superfine 11. Few companies across the globe have such a diverse product range of nearly 12. And Regency Textile is Portuguesa Ltd (for fine Tailored Suits. Raymond manufacture for the world.suiting in the world.wool.from being the first in 1959 to introduce a polywool blend in India to creating the world's finest suiting fabric. Raymond step into garmenting through highly successful ventures like Silver Spark Apparel Ltd. 7 .000 varieties of worsted suiting to cater to customers across age groups. Trousers and Jackets). The Raymond’s endeavor to keep nurturing quality and leadership.

Raymond is today one of the largest players in fabrics. Park Avenue. All Raymond plants are ISO certified. engineering files & tools. Zapp! And Notting Hill. Parx. Manzoni. VISION & MISSION ➢ HR Vision 8 . Be: Zapp! And Notting Hill. cosmetics & toiletries. Parx. leveraging on cutting-edge technology that adheres to the highest quality parameters while also being environment friendly. The Raymond Group also has an expansive retail presence established through the exclusive chain of 'The Raymond Shop' and stand-alone brand stores for Manzoni.Raymond also has some of the most highly respected apparel brands in their portfolio: Raymond. denim. prophylactics and air charter services in national and international markets. With a 500 million US$ turnover. Be:. designer wear. Color Plus. Color Plus. Park Avenue.

“Raymond the most desired workplace for top talent” ➢ HR Mission We commit to the HR Vision of making “Raymond the most desired workplace for top talent”. Trust. VALUES ➢ Trust ➢ Quality ➢ Leadership ➢ Excellence 9 . Leadership and Excellence in all our actions & HR processes so as to make every Raymondiate a complete man. “We will strive to weave in the core Raymond value namely Quality.

COMPANY PROFILE Name of the company : Raymond Limited (Textile division) : Plot 156/H No. Tel No Fax No Year of Establishment At Vapi Business Activities Fabric Board of Directors : Dr.V.Bhargava U. 10 .8.H. Kedia Nana Chudasama B. Zadgaon.Bhandari : 0260-3252243 : 0260-2340322 : 2005 : Manufacturing Process of Fibre to Address of Registered Office Ratnagiri.Agarwal Nabankur Gupta P.K. 2. Factory Location and Address : N .D. Tal-Pardi.Rao I. 415 612. Vijaypat Singhania Gautam Hari Singhania B. No.K. Khadki Udwada.V.


: (1) Bank of India (2) Bank of Maharashtra (3) Bank of America (4)Central Bank of India (5) City Bank N.A. (6) HDFC Bank Limited (7) The Hongkong and

Shanghai Banking Co-operation Limited (8) Standard Chartered Bank Stock Code : Bombay Stock Exchange Ltd -500330 National Stock Exchange of IndiaRaymond EQ Auditors Website : Dalal & shah : Www.Raymondindia.Com


There are 10 Companies in Raymond Group. ➢ Raymond Ltd. It is among the largest integrated manufacturers of worsted fabrics in the world. ➢ Raymond Apparel Ltd. Raymond Apparel Ltd. has in its folio, some of the most highly regarded apparel brands in India - Manzoni, Park Avenue, Color Plus, Parx, Be: and Zapp! And Notting Hill. ➢ Color Plus Fashions Ltd. The company was acquired by Raymond to cater to the growing demand for a high end, casual wear brand in the country for men and women. ➢ Silver Spark Apparel Ltd. A garmenting facility manufacturing formal suits, trousers and jackets. ➢ Regency Textile Portuguesa Ltd A facility set-up in northern Portugal bordering Spain, in Caminha for the manufacturing suits, jackets and trousers.


➢ Ever Blue Apparel Ltd. A state-of-the-art denim garmenting facility. ➢ Celebrations Apparel Ltd. A facility set-up for the manufacture of formal shirts

➢ J.K. Files & Tools A leading player in the engineering files & Tools segment and the largest producer of steel files in the world. ➢ Ring Plus Aqua Ltd. A leading manufactures in the engineering automotive components. ➢ J.K. Helene Curtis Ltd. A leading player in the grooming, accessories and toiletries category. ➢ J.K. Investo Trade (India) Ltd. JKIT is an investment company registered with Reverse Bank of India as Non-Banking Financial Company.


A plant set up to manufacture carded Woolen fabrics and blankets. The Joint venture with Grotto S. Manufacturing files and rasps for international markets. Ansell Ltd. A Greenfield facility manufacturing high value cotton shirting. ➢ Raymond Zambaiti Pvt. ➢ J. The manufacturers and marketers of Kama Sutra condoms and surgical gloves. BRAND PORTFOLIO 14 .A launched the highly successful 'GAS' brand in India. ➢ Raymond Woolen Outerwear Ltd. ➢ J. Talabot Ltd. The manufacturers and marketers of denim fabrics.K. Ltd.JOINT VENTURES ➢ Raymond UCO Denim Pvt. ➢ Gas Apparel Pvt. Ltd.K. Raymond has Joint venture with MOB Outillage SA. Ltd.P.

The brand offers the discerning customer a super premium range of suits. Krishna Mehta. shoes and leather bags. jackets.Women’s Western wear. Manish Arora. ➢ Color Plus Color Plus is among the largest smart casual brands in the premium category. Vidhi Singhania and Wendell Rodricks across categories namely . casual wear brand in the country. Savio Jon. Varun Bhal. reflecting the vibrancy and attitude of the energetic 22 to 30 year old. Akbar Shahpurwalla. shirts. blends and denim wear. The company. Be: offers a wide range of apparel and accessories for both men and women from well known Indian designers like Anshu Arora Sen. belts.➢ Manzoni Manzoni is a luxury lifestyle brand providing the best in contemporary international style & luxury. ➢ Be: Be: offers fashion that captures the latest trends from across the globe. cufflinks. Shantanu & Nikhil. trousers. ➢ Park Avenue Park Avenue is a premium lifestyle brand and has been the single largest formal wear brand in India for the past two decades. socks. Women’s Ethnic wear. acquired by Raymond caters to the growing demand for a high end. ➢ Parx Parx is a premium casual lifestyle brand comprising a range of semi formal and casual cottons. Rohit Bal. Priyadarshini Rao. and accessories such as ties. Lounge 15 . Preeti Jhawar.

an innovator in the Indian textile industry. The company exports its suiting fabric to more than 55 countries including USA. wool from 80s to 230s count. Alpaca. Linen etc. Canada. Japan and the Middle East. It has four plants located in the states of Maharashtra. is the leading integrated producer of worsted suiting fabric in the world. Raymond. Polywool blended fabric ➢ 33 million meters ➢ 4 integrated plants in India Raymond. Gujarat and Madhya Pradesh. Silk.FABRIC Worsted suitings: ➢ Pure wool. has developed a heritage of in-house skills for research & development. Europe. Angora. which are today the corner stones of the worsted suiting industry in India. The Group has mastered the craft of producing suiting using. like Cashmere. blends with superfine polyester and other specialty fibers. with an installed capacity of 33 million meters of wool & wool blended fabrics. 16 . This has resulted in path-breaking developments of new products.

is a state-of-the-art integrated manufacturing facility located 57 kms away from Nagpur in Central India. the plant produces premium pure wool. With decades and expertise and finely honed skills. Jalgaon Plant 17 . Built on 100 acres of land. Chhindwara Plant The Raymond Chhindwara plant. giving it the distinction of being the single largest integrated worsted suiting unit in the world. This plant has achieved a record production capacity of 14. set up in 1991.65 million meters.Thane Plant This is the mother plant and is the centre of competence for world class manufacturing and design facilities. wool blended and polyester viscose suiting. this plant is a treasure house of knowledge for producing superfine worsted suiting fabrics.

A new manufacturing facility was set up at Jalgaon. automatic drawing-in and other machines from Italy. After this expansion. The plant is set up on lush green land. Vapi Plant Raymond has increased its worsted suiting capacity by 3 million meters. finishing machines. The location’s advantages are: ➢ Situated in Gujarat. Modeled to meet international standards. the Vapi plant has been set up on 112 acres of lush green land with Hi-tech machinery such as warping equipment from Switzerland. world class carded woolen unit. as part of the second developmental phase of the Vapi plant. This plant of Raymond is the youngest member in the family. weaving machines from Belgium. and after its closure. In 2006. Raymond Fedora Ltd. Raymond will have a total capacity for manufacturing 31 million meters of worsted suiting per annum. to meet the increasing demand for worsted woolen fabrics in 1979. also set up.known for its good governance ➢ Situated on NH no. was acquired by Raymond with vision to develop a world class unit to meet international standards.8 and near to industrial Hub ➢ Well connected by Rail & Road ➢ Proximity to Mumbai/Thane ➢ Non-polluted ➢ Accessibility of skilled manpower ➢ Continuous availability of water ➢ Urbanized and literate people 18 . This was the property of Rohit Pulp & Paper Mills Ltd.

satisfaction.and understanding. ➢ Good relation between Management & staff. Other activities undertaken for agood Organizational Climate are shown below: ➢ Good relation with government agencies and contractors ➢ Good communication from top to bottom level and bottom to top level. polyester viscose and all suiting fabrics in near future. ➢ Good communication between Management & Staff & Employees. Warping equipment from Switzerland.culture community with communal harmony Currently the unit is engaged in manufacturing of premium worsted suiting fabrics. ➢ Punctuality of Job . They work together and with commonunderstanding try to achieve the objective of the organization. 19 . Weaving machine from Belgium. between Staff & workers. Loyalty. and is equipped with state of the art technology with hitech machineries viz.➢ Multi. automatic drawing-in and other machines from Italy to produce 11 million mtr fabrics per annum It is propose to manufacturing polyester wool. ➢ Discipline is maintain at all levels. Finishing machines. Overall Organization Culture Over all organizational culture of Raymond Vapi is governed by self -discipline.

SWOT ANALYSIS Strength: • • • • • • Location Advantage Water availability Raw material Availability Skilled labour at low cost Modern world class machineries Schematic Layout Opportunities: • • • Increase focus on product development 100%capcity utilization Increase foreign market business • • • • • • Weakness: Current Scenario of market Effect of government policies (Delay in Procedure) Threats: Competition in Domestic Market & International market Ecological & social awareness Regional Alliances 20 .


22 .

Raymond setup a readymade garments plant at Thane. The mill was primarily making cheap and coarse woolen blankets.  1979 .  1980 . transforming it into a modern.The first showroom abroad for Raymond in Oman. the premium lifestyle brand providing a complete wardrobe solution to the men who like to dress well & be current on styles & fashion. This has now become the largest facility of its kind in the world.  1986 . 23 . The readymade garments division of Raymond has since then grown rapidly. achieving a business turnover of over Rs.A new manufacturing facility was set up at Jalgaon.  1964 .  1968 .Vijay pat Singhania took over the reins of the company. This was followed by a phase of vertical integration. in India.  1944 .Setup of The Raymond Woolen mill in the area around Thane creek.  1990 .Launch of "Park Avenue". King's Corner.Setup of a new manufacturing activity for making indigenous engineering files known as JK Files & Tools.  1958 .The first exclusive Raymond Retail showroom. industrial conglomerate. Raymond has now become the leader among ready-mades.Setup of a new Combing Division. He injected fresh vigor into Raymond. Lala Kailashpat Singhania took over The Raymond Woolen Mill. facilitating in the processing of multi-fibres and technology improvements to make blended fabrics.Lala Juggilal.MILESTONES  1925 . and modest quantities of low priced woolen fabrics. 2000 million. was opened in 1958 at Ballard Estate in Bombay. to meet the increasing demand for worsted woolen fabrics.  1950 .

a premium casual wear brand bringing customers a range of semi-formal and casual clothes.  1999 . With a 40 million meters capacity.' for the manufacturing of formal shirts.The Renaissance Collection made of Merino wool blended with polyester and specialty fibres (Super 100S to Super 140S).Raymond's denim.  2005 .  2003 .Acquisition of Color Plus  2004 . innovation and the creation of exclusive products that have always caught the eye of some of the world's leading denim wear brands. 1991 .' near Bangalore.  1996 .  2003 .Setup of state-of-the art Jeanswear facility 'Ever blue Apparel Ltd. focusing on quality.The Chairman's Collection of Super 150S made from Merino Wool and Cashmere followed by Super 160S to super 190S. 24 .  1995 .A new manufacturing facility was set up at Chhindwara.' for manufacturing suits and formal trousers catering largely to export markets. near Nagpur.Super 220S fabrics under the Chairman's Collection.  2005 .Launch of "Be:” exclusive prêt line of ready-to-wear designer clothing for men and women.  2000 .Superfine pure wool collection under the Lineage Line (Super 100S to Super 140S). Raymond today ranks amongst the top 2 producers of ring denim in India  1999 .Setup of state-of-the art facility 'Celebrations Apparel Ltd.Launch of "Parx". Its designs have always kept pace with the changing styles and cuts found in every Youngster’s closet.  1996 .Setup of 'Silver Spark Apparel Ltd.

Entered into joint venture to retail premium brand ‘GAS’ in India.  2006. France for the manufacturing of files and rasps.  2008.The Super 230s made up of 11.  2006 .  2006.Launch of new brands for women’s wear. Raymond Fedora Ltd. This facility is set up as part of the company's JV with Gruppo Zambaiti.  2007.Raymond achieved a rare feat and a historical milestone with the creation of the world's finest worsted-suiting fabrics from the finest wool ever produced in the world.K Talabot Ltd – JV with MOB. Angora.Set up of J. in Jalgaon.readymade apparel under Raymond brand  2008-launch of ‘Neckties & More’.new format store for accessories.  2005 .Set up of world class carded woolen unit.  2006 .Launch of Zapp! Our kids wear brand with first store in Ahmedabad  2007. Casein. 2005 .Launch of design studio in Italy for cutting edge design capabilities for exports and domestic brands. Raymond now has 3 state of the art units with a combined capacity of 31 million meters of worsted fabric. 25 .Launch of 'Expressions' an exquisite collection of all wool and Polywool suiting specially crafted using exotic fibers like Cashmere.Launch of ‘ Raymond Finely Crafted Garments’.  2006 . Mohair.  2006 .Set of Raymond's third worsted unit at Vapi in Gujarat. Bamboo.Set up of Greenfield shirting unit at Kolhapur producing high value cotton shirting.8 micron of wool.

many path breakthroughs were made. 26 . During the last decade.  2003: Applause Wool-Rich Home Washable Suiting.  1995: Superfine pure wool collection under the Lineage Line (Super 100s to Super 140s).5 microns) fabrics under the Chairman's Collection.  2002: Super 200s (13.  1999: The Chairman's Collection of Super 150s made from Merino Wool and Cashmere followed by Super 160s to Super 190s.  1996: The Renaissance Collection made of Merino wool blended with polyester and specialty fibers (Super 100s to Super 140s). and was the first to introduce Polyester-Wool and PolyesterWool-Viscose in the Indian market.TECHNOLOGICAL BREAKTHROUGHS Raymond has been pioneering technological breakthroughs over the years.

Mohair.8 micron of wool. Human resource management serves these key functions: ➢ Recruitment & Selection ➢ Training and Development (People or Organization) ➢ Performance Evaluation and Management ➢ Promotions/Transfer ➢ Redundancy ➢ Industrial and Employee Relations ➢ Record keeping of all personal data. ➢ Compensation. pensions. Bamboo. OVERVIEW OF OTHER DEPARTMENTS HUMAN RESOURCE DEPARTMENT. Angora.2 microns) fabrics under the Chairman's Collection.  2005: Launch of 'Expressions' an exquisite collection of all wool and polywool suiting fabric specially crafted using exotic fibers like Cashmere.7 microns) fabrics under the Chairman's Collection.The Super 230s fabric made up of 11. 2003: Super 210s (13.  2005: Raymond achieved a rare feat and a historical milestone with the creation of the world's finest worsted-suiting fabric from the finest wool ever produced in the world.  2004: Super 220s (12. bonuses etc in liaison with Payroll 27 . Casein.

➢ Confidential advice to internal 'customers' in relation to problems at work ➢ Career development ➢ Competency Mapping ENGINEERING DEPARTMENT Engineering department includes four major sub departments: ➢ Mechanical ➢ Electrical ➢ Instrumentation ➢ Civil The major activities of Mechanical and Electrical department are to fulfil the following requirement to the different textile departments: ➢ Steam ➢ Water 28 .

➢ To facilitate printouts and Xerox in several department. ➢ To check and solve the problems related to computer system accessing in the factory premises. ➢ To facilitate company login ID creation to officers.➢ Electricity ➢ Air IT DEPARTMENT Objectives ➢ To provide computer system facility to all department. ➢ To facilitate networking of all computer system in the company. ➢ To provide internet access facility to all department. IT comprises in three parts: 29 .

30 . It is concerned not only with quality level and the cost of maintaining this level. ➢ Database server ➢ Windows server ➢ Monitoring server QUALITY CONTROL DEPARTMENT Quality Control is concerned with evaluation of test data and its application to the control of textile process raw material intermediate product and final product. The main objectives are:➢ Assistance in establishing quality controls at various points in the manufacturing process. but also with the presentation of tangible values to measure quality and changes in quality.➢ Hardware ➢ Software ➢ Administrator There are three types of server inside the IT room.

GENERAL STORE DEPARTMENT Functions Raw material that are required in the production are store in stores. Purchase Requisition is received from the department and the demand is send to purchase department. Tests are done on the fiber stage. The material will be received in the general 31 . fabric stage. yarn stage. ➢ Investigation of defects and assistance in solving quality problem during production ➢ Implementation of quality control measures for incoming store.➢ Maintenance and calibration of process control equipment. Indent is made for the material required by the department. The purchase department will give the order for the material. ➢ Operating a testing laboratory to carry out required test and analysis There are different type of instrument used in QC department for different type of material testing.

BIN Card system is applied for keeping the record of materials. Bearing for machines etc. The material that are procured are Engineering item. spares. GRN (Goods Received Note) is Received for the material purchased on behalf of departments and the material is verified with the note. Surat.stores and the verification of quantity is done by general stores and quality is verified by respective department. All the material are purchased from Vapi. After receiving the material it is shifted to BIN. COMMERCIAL DEPARTMENT The raw Material that is demanded by the departments for production is informed at Thane and is coordinated with Thane head office. dyeing . packaging material. 32 . If the material is not according to the demand or the requirement than it is rejected and for that purpose rejection note is prepared and material will be returned to the supplier. The material are procured here independently. Bombay.


700 0 RECOMBING Kg. 14000 Kg. 7000 Kg. 14000 Kg. 7500 Kg. 140 00 mtrs 250 00 mtrs 300 00 mtrs 300 00 mtrs 14000 Kg. 320 0 SPINNING Kg. 28000 mtrs 40000 mtrs 40000 mtrs 150000 mtrs 34 . 320 0 DYEING Kg.SCOURING GRIEGE COMBING 130 0 CONVERTER Kg. 320 0 WEAVING 700 0 FINISHING mtrs 150 00 FOLDING mtrs 150 00 WAREOUSE mtrs 150 00 mtrs Kg. 7000 Kg.


A special mixture of lubrication. oil and water is sprayed on the spreaded fibers. Here lubrication of fibers is done so that wool will be going in to carding and avoids any static generation further processing of the wool. Bale opening is done by manually spreading of fibers from bale on the floor with the help of workers. Normally fiber length is 5 to 9 cm and above and fiber diameter is 17 to 26 micron.SCOURING Scouring is the process of cleaning the raw-wool which contains natural Greece and foreign particles like dirt. Here the raw material is coming in form of bales. After completing the process of scouring. clean wool pass on to the next department. hey and other vegetable matters. One bale weight has 150 to 160 kg. SCOURED WOOL BALE OPENING PROCESSING OF WOOL CLEAN WOOL 36 . dust-burrs and twigs.

dust. The basic aim of this department is to remove the impurities in the fibers and create equal size fibers for further processing. dint etc.GREY COMBING This department is the preparatory department before going for dyeing or re-Combing. ➢ To open the tiny lumps and hooks ➢ To convert criss-cross and tough form of bulk and giving finally rope like shape GILLING ➢ To improve evenness ➢ To blend the fibre ➢ To remove shorter staple fibre ➢ To strengthen the fibre COMBING: ➢ To remove the short fibers ➢ To remove the neps and impurities 37 . According to the raw material it has two sections (a) Wool (b) Polyester. gilling and combing with respect to wool and sub processes like converter and gilling for polyester. In this process the raw materials goes through various sub processes like carding. CARDING: ➢ Parallelized fiber and sliver formation ➢ To remove impurities such as vegetable matters. From this department the raw materials are converted into tops and sent to Dyeing.

➢ To impart luster The process flow of Grey Combing is given below: CARDING GILL BOX 1 GILL BOX 2 GREY COMBING GILL BOX 3 COMBER GILL BOX 4 GILL BOX 5 38 .

CONVERTER GILL BOX 1 CONVETER GILL BOX 2 GILL BOX 3 39 . The flat web of continuous filament called TOW which is fed to the converter and cut into the desired staple length so that it can be used to spin the staple yarn finally the filaments are converted to sliver and fed to cans Then sliver fed to gilling machines so that fiber becomes more parallel and even.CONVERTER: Converter machine is only for polyester materials.

Dyeing is the process of coloring textiles materials by immersing them in an aqueous solution of dyeing called liquor consist of dye. The Process flow of Dyeing is given below: PREPARING OF DYE LIQUER SAMPLE DYEING SAMPLE MATCHING DYEIN G COMPRESSING OF WOOL/ PLOYESTER BUMOP TOPS 40 . water and an auxiliary after dyeing the tops are dried through HTHP m/c and RF m/c and further sent for the re-combing.DYEING This is the one of most important department of all because here the fibers are dyed to suitable shades as per the customer requirement. Here before dyeing the different shades are matched to customer requirement and passed through quality inspection to avoid rework.

The main objects of Re-combing are:➢ To separate the fibers of dyed tops of wool. The process flow of Re Combing is given below: DEFELTER BLENDER GILL BOX 1 41 . wool.TOP DYEING HYDRO EXTRACTOR RE-COMBING RADIO FREQUENCY DRYER After dyeing. the dyed materials are going to Re-combing department. polyester ➢ Ensuring homogenous blending ➢ Removal of short fiber ➢ Removal of entanglement at the time of dyeing ➢ Removal of undesired elements like slubs. polyester tops etc go to the Re-combing section. ➢ Blending of fibers viz. neps & pin point. Then they blend these according to their required quality. Input in terms of wool tops.

thick place. After the ring frame spinning is done. The yarns in the corn and cheese form are received from 42 . neps. and to obtain suitable packages for further processing. the Recombed tops are again passed through gilling machine to increase the strength of the fiber and to prepare slivers that can be fad into rubbing frame now the sliver is converted into roves by applying draft and doubling operations and reduction of sliver’s cross sections. yarn is subjected to steaming because highly twisted yarns are prone to snarling during winding.RE-COMBING GILL BOX 2 GILL BOX 3 COMBER GILL BOX 4 GILL BOX 5 SPINNING: Spinning is the process in which fibers are converted into yarn which is actually used for the weaving and to make the fabric here. thing place etc. Now roving spools are brought to ring frame and roving is converted into yarn by roller drafting system. After the spinning of the fibers on the ring frames it is checked for the uniformity and breakages in the AutoConner section and also remove the defects like slubs.

The process flow of spinning is given below: GILL BOX 1 GILL BOX 2 GILL BOX 3 GILL BOX 4 SPINNING unt Below 30 Nm VERTICAL GILL BOX Co RUBBING FRAME RING FRAME STEAMING 43 .F.auto-winding machine here two yarns are just wound together without any twist.O the packages is again sent to steaming to reduce snarling tendency and finally all yarn packages sent to the yarn room department for storage. Then twisting is done for improve the evenness. After the T. strength and elongation.

The yarn is weighted and entry is done in computer. Yarn needed for warping and weaving is determined by S. BHIWANI.M department. The main function of yarn room is to arrange all yarn packages according to correct shade number. VIKRAM WOOLEN etc or other plants of RAYMOND. lot wise etc. NOVA PETROCHEMICALS. WELSPUN.Siro Lycra STEAM AUTO CONER Siro Lycra and Single Weft PLY WINDING TWO FOR ONE STEAMING YARN ROOM YARN ROOM: This is the storage room for the yarn that are produced in the spinning section and the yarn that are outsourced. If yarn is not sufficient then it is imported from various exporters like ELEGNT SPINNERS. SAGAR TWISTERS. It is the only section that does not add value to 44 .C. It acts as a bridge between the Spinning and the Warping stage of the production.

To make the storage and retrieval of the yarns simpler and systematic. on an average.the inventory but despite that is critical for the smooth functioning of the processes. in the process flow. The capacity of the yarn room is nearly about 130 tones of the yarn. etc of the yarn room and coming up with ways to improvise the management of the yarn room. constraints. The yarn room at Raymond. Warehouse Management System (WMS) is trying to be implemented in Vapi. The project “Implementation of Warehouse Management System in Vapi” aims at studying the requirements. Yarn Room is an intermediary storage location for yarns and it comes in between the spinning department and the weaving department. However. implementation of WMS requires determination and standardization of the practices to be followed in the yarn room. 45 . Vapi currently stores 250 T of yarn.


5. Batch no. The breakup of this figure. 4. 8. on the basis of the type of yarn is shown below. 6. a yarn is distinguished from another on the basis of a combination of the following parameters: 1. Type of Yarn Deco Yarn Viscose Yarn Texturised Yarn PW Yarn PV Yarn All wool Quantity 6T 6T 6T 174 T 58 T 4T For bar coding purposes. on an average.Yarn room currently stores 250 T of yarn. 7. 2. Count Blend Material Source Weight Date of receipt Date of delivery 47 . 3.

blend and material cannot be used for the production of the warp of the same fabric. when a bin number is entered. Any violations to this are subject to the discretion of the SCM department. Hence. including the bin / trolley locations where it is stored.Two yarns. A single sales order can have several batch numbers. it should return details of the yarn. The main object of the warping is to produce the warp sheet according to the warp pattern and formation of warp beam. Whenever a bar code is entered. while a batch number will correspond to only one sales order. WARPING The yarns which are coming from Spinning Section are going for winding for preparing required amount of package. Winding supply sufficient number of packages in form of cheese to bencreel so that sectional warping would take place here number of packages are determined according to length of fabric. when fed in for a yarn. though they may be of the same count. Creeling is a process of loading the packages on creel according to the design given by designing department and drawing yarn from respective packages to sectional warping machine through guiding rollers and eyelets. will give other relevant details. the WMS should be able to provide information of the yarns contained in that bin/ trolley and how much capacity is remaining in it. Batch no. batch no. 48 . Similarly. Then they are creeled according to the warp pattern which is given by designing department. is used as the primary key for a bar code. unless they have the same batch no.

Drawing in is the process of passing of warp yarn through the eye of healds according to peg plan.Sectional warping is a process of preparation of warp yarn for process of creeling here length of warp yarn is determine by length of fabric according to considering the factor like shrinkage. Denting plans are entirely dependent on the end density and number of dents per centimeters In the reed. in this process this plan is describes the arrangement of the warp ends in the reed. Denting. though there are some fabrics that require precise positioning of dent wires in relationship to weave. The process flow of the warping is given below: WINDING CREELING SECTIONAL WARPING SIZING (CELLULOSIC YARN) 49 . weight loss etc. Knotting is a process of making knots of warp yarn on beam to achieve warp length for particular length of fabric. Waxing is done during warping and beaming process to make wrap yarn smooth so that there will be minimum breakage on loom.

The beam from the warping section is used here to prepare the real fabric that we know. which is drown forward to 50 . through gaps between the wire of reed. each ends are successfully passed through each of drop pin eyes which is an essential part in stopping the loom in event of a break in any of the warp yarn then it is pass through the eye of heads. which is the comb light structure. where by means of simple interlacement of warp.WARPI NG BEAMING WAXING KNOTTING GATTING AUTO DRAWING WEAVING Weaving is the department. Passage of warp yarn through looms the warp yarns are contains on weaver’s beam at the back of loom. weft and selvedge’s two sets of threads are converted in to fabric. in front of the reed warp and weft yarns are combined together to form fabric.

After completing pre-decides length of the fabric the cloth roller is given to grey perching table.be store on the cloth roller. The fabric is pass over the frosted glass with light behind it and it inspect visually if any defects are there then the worker give some mark on fabric with some marking material which is easily removable. Then material is handover to mending department. The process flow of weaving is given below: LOADING OF WARPING BEAM ON LOOM SHEDDING PICKING WEAVI NG BEATING UP LET OFF TAKE UP 51 GREY CHECKING . Here visible inspection of fabric is done.

domestic. 52 .TAKE UP GREY CHECKING MENDING: Mending is the process where the defects in the fabric from the weaving section are visually inspect and manually removed and maintain the quality of fabric. After correcting all removable faults. exclusive etc. checking tables and extra mending tables. fabrics are arranged in lot size according to requirement of pieces like export. Fabrics are passing through different table like mending tables. This department still follows the conventional method of doing things manually.

the batch wise arrangement is done in finishing department. The term finishing means completing the manufacture of cloth by surface treatment. Finishing is an essential process for textile goods before they are put on the market. There are three types of finishing phases ➢ Wet 53 .The process flow of Mending is shown below: GREY PERCHING MENDING Mending GERY CHECKING FOLDING FINISHING: After taking fabrics from mending department.

➢ To make sure fabric free from pills and soiling. ➢ To impart special properties to the fabric for specific end uses. ➢ To produce novelty effects The process flow of finishing is shown below. 54 . ➢ To increase the weight of the fabric.➢ Dry ➢ Grey finish The main objective of finishing are:➢ To improve the appearance of the fabric that is make it more attraction or lustrous. ➢ To produce stronger and more durable fabrics. ➢ To improve the feel of the fabric. ➢ To cover faults in original fabric. ➢ To improve the weaving qualities. ➢ To set the texture of certain fabrics and make others dimensionally stable.

Batching Prescouring Resin Heat Setting Shearing Singing Rope Scouring /Resin Rope Opening 2nd Drying Shering Semi Perch Damping Pressing Super Finishing TMT Super Finishing Finishing 55 .

manufacturing site.FOLDING After completion of finishing process the fabric transfer to folding department here the full finished fabric comes from finishing department is being folded. Here mending or correcting of faults are done after that fabrics is go for lab testing in that pilling and shrinkage test are done normally for export quality of fabric now both back side as well as front side of fabric are inspected particularly in center to selvedge inspection and end to end inspection. After that paper pasting process is start in that paper transfer is used for pasting on the folded or rolled fabric in contains company’s name.. After that the fabric is check on perching machine for their quality of finishing and any defects which are left out. The first step of folding process is to make grey sample made for future use then samples are being matched with the standard fabric sample from chhindwada plant. Then brand tags are attached to respective fabric for their respective brand 56 . blend information. On that basis flags are put on the fabric according to the faults. package date and length. After that individual piece wise weighting is done. width.

S to ra g e o f F a b ric G re y S a m p le M a kin g S a m p le M a tc h in g F in ish C h e k in g M e n d in g L a b T e s tin g p o rt M a rke t F)a b ric (E x F a c e& B a c k s id e In s p e ctio n s F la g g in g Folding L a p p in(D o m e s tic M a)rk e t g R o llin(E x p o rt M a rk e t g ) P a p e r T ra n s fe r P a s tin g T a g A tta c h in g P a c k in g W e ig h in g 57 .

Warehouse manages to search a particular piece number. with respect to civil. domestic. In warehousing fabrics are issue through scanner from folding department which read the barcode on the tag of packed fabric. A particular length of fabric is cut from each quality number to make the sample so that its rate and price could be declared. 130 cm after that booklet making is done in that collection of fabric pieces of 2. Staple fabrics are dispatched from stocks to party. Rolls and folded fabric are further stapled in an opaque plastic cover by using stapling machine. shade wise etc. export. Normally sample size-110. 120.5 inches each fabric pieces called card there are 24 cards in a booklet. Maximum stock capacity of fabric is 8 lacs mtr. 58 .etc and finally according requirements and order fabric are dispatch.5*2. The material is first divided into quality wise. quality number and other information of fabric from stock.WAREHOUSE AND DISPATCH After folding department fabric is transfer to warehouse for final storage then final packing. shade number.

MATERIAL HANDLING Material handling is defined as movement and storage of material at the lowest possible cost through the use of proper methods and equipments. The main objectives of material handling are ➢ Lower unit material handling costs ➢ Contribute to better quality by avoiding damage to products by inefficient handling.NO 1 2 NAME OF THE DEPARTMENT Scouring Grey-Combing and Converter MATERIAL HANDLING EQUIPMENTS  Duct (chute feed system) ➢ ➢ ➢ ➢ Roller cans Tow trolleys Pallets Top box trolleys 59 . ➢ Improve the working conditions and greater safety in the movement of materials. In RAYMOND. ➢ Reduction in manufacturing cycle time through faster movement of materials which reduce work-in-progress inventory cost. material handling equipments are used in various Departments SR.

3 Dyeing  Dyed top trolleys  Cheese creel trolleys  Electrically operated Cranes 4 Recombing  Roller cans  Finish top trolleys  Tractor-trailer train(MEL)  Pallets 5 Spinning ➢ Roller cans ➢ Creel trolleys ➢ Bobbin trolleys ➢ ➢ ➢ ➢ Creel trolleys Fork lift trucks Band trucks Stacker 6 Yarn room 7 Warping ➢ Beam lifter trolleys ➢ Heald shaft trolleys ➢ Bobbin trolleys  Gaiting trolleys  Fabric beam trolleys  Folding fabric trolleys  Wooden pallets ➢ Folding trolleys ➢ Trolleys ➢ Band trucks fabric 8 9 Weaving Mending 10 11 12 Finishing Folding Warehouse 60 .

In Raymond. It is a value streams for business. Strategy & Analysis. SCM deals with the following activities. It provides link between the all other departments. air and steam. SCM DEPARTMENT Supply Chain Management Definition: In Raymond. Now a day. 1. SCM is the core Department which mainly deals with the planning & control activities of each plan. SCM works as owner of the company.Some of the miscellaneous handling equipments like pipe lines which are closed tubes that transport water. Planning Processes 61 . ➢ Management Reporting & Analysis 2.

➢ Commitment to Sales 62 . SCM is done these activities on the basis of Make To Stock & Make To Order. Core Processes ➢ Procurement & Inbound Logistics – – – – – – – – – – – Sales Orders Raw Materials Spare Parts Outsourcing Capacities Capacity Balancing Delivery Commitments Priority setting Internal Follow up Ware House Stock Maintenance Delivery Planning Good Dispatching ➢ Factory Planning & Production ➢ Sales & Outbound Logistics 4. Support Processes ➢ Financial & Cost Management ➢ Maintenance & Engineering ➢ Quality Management ➢ Human Resources SCM also focuses on the civil & export marketing.➢ Supply Chain Planning 3. Vapi SCM has following Key Result Areas.

Vapi SCM analysis that plans and as per the production capacity of each department they prepare Master Production Schedule & Material Requirement Planning They set the production target monthly/weekly/daily basis and those targets are to be E. The updates of various departmental Reports are E-Mail to the main THANE unit. all receipt and payments etc. All major financial decision is taken by THANE head office.➢ Timely Delivery ➢ Raw Material Availability ➢ Maximum Production by using minimum Capacity ➢ Help Production Departments to improve quality Vapi SCM receives yearly/monthly plans from the main THANE Central SCM. all this activity is done in SAP system and through this system all accounting report access at all locations of Raymond. 63 . expenditure.Mail to each department through SAP system. from fibre to fabric.e. the requirement and transfer of raw materials from one department to the other department i. salary. making Chelan and invoice. is also managed by SCM. ACCOUNT DEPARTMENT INTRODUCTION: This company has finance cum account department which is mainly deal with all transactions like wages. After that. Further more.

➢ To provide MIS report monthly to management for accurate decision making ➢ To prepare annual revenue budget for proper control ➢ To create cost control awareness by providing training FUNCTIONS 1. Cash Management ➢ Cash reconciliation ➢ IOU reconciliation ➢ Fund Management ➢ Statutory Payment ➢ Accounts Payable Management 64 . Accounts payable management ➢ Invoice Verification ➢ Payment scheduling ➢ Disclosure ➢ Bank reconciliation ➢ Vendor reconciliation ➢ Budget 2.OBJECTIVES ➢ To reduce cash transactions ➢ To record and maintain all monetary transactions of unit in SAP ➢ To provide required schedule for fund ➢ To provide necessary information to all internal and external customers.

Invoices are also verified for the duties charged or whether CENVAT credit is received or not or whether that material is excise able or not. the vendors or not through this acknowledgement. Bank Reconciliation Accounts department verify about the payment made whether it is received by 65 . If materials are not according to the purchase order made then amount is deducted and then payment is made. Vendor Reconciliation If any payment is due even after the due date then the ledger balances is reconciled if money is not received by the vendors. The quantity and quality of the materials received as per the purchase order or not is seen. Disclosure Acknowledgement from the vendors is received by the accounts Department. Payment Scheduling & preparation of Cheque Payment is made to the vendors as per the auto scheduling of overdue invoices.Invoice verification Invoices are verified against the purchase orders made. If the material sent is rejected then quantity rejected is deducted from the actual quantity and payment is made for the approved material. Payment is only made after the detail verification of invoice.

This amount is also reconciled against the voucher received. IOU reconciliation Any employee takes IOU for the office use or personal use. Cash management A certain level of cash is maintained for working capital requirement. That employee submits a voucher for the amount spent and left money is returned. 2. Cash reconciliation Cash balance is matched daily against the amount disbursed. the estimation of these expenses is sent by various plants to the accounts department. Person to whom amount is disbursed submits a voucher as a proof of the expenses made. Difference in bank charges is reconciled by the accounts Budget The expenses which are incurred for production. If it’s too low then day to day activities can be hampered and if it’s too high there is a risk.Bank book and pass book is maintained is by the accounts department. 66 . After getting estimation from the entire plants budget is prepared by the accounts department and sent to the head office for approval. The amount of cash maintained in the company should be neither too high nor too low.

95 68.95 76.09 Market Capitaliation as on 31. water bills also included in these.1 76. Accounts department intimate this to head office and ask for funds for these expenses. Audit for that is conducted on any day in a month.Fund Management Every department estimates the expense to be incurred in the coming month and gives this estimate to the accounts department. At the end of every month stock shown in SAP should be matched with the physical stock.In Lacs) Closing Share Price as on 31. of Shares Highest Share Price(Rs.4 5 4692 6 NSE 10596 293 302 67. In Lacs) BSE 9112 494 303.In Lacs) Lowest Price Share(Rs. Statutory Payments Statutory payments like GEB bills.09 (Rs. FINANCIAL HIGHLIGHTS: Particulars No. and ETP bills are also made by the accounts department. water bills. Some statutory payments like electricity bills.3.15 46742 67 .3.

➢ This graph shows the continuous increase in the total assets of the last five years.It indicates the company has good investments in both fixed and current assets as well. Profit before tax. We can see that in 2007. the company has more than 200 Lacs Rs.But in current year 2009. This happens because of the heavy loss in export business and due to recession. ➢ The reported net profit is good in last 4 year. ➢ In 2009.the company facing loss of more than 200lacs.company facing loss as per the calculation of profit before tax. 68 .


11 888 .75 1. 38 1.77 25.48 46.04 0 62. 78 1.2 75.53 0 13. 8 329 . 71 2.66 0 689 .75 787 .Particular SOURCES OF FUNDS : Share Capital Reserves Total Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities APPLICATION OF FUNDS : Gross Block Less : Accumulated Depreciation Less: Impairment of Assets Net Block Lease Adjustment Capital Work in Progress Investments Current Assets.98 0 676 .0 65. 04 61. 38 1.88 1.05 0 85.85 476 .1 43.59 1. 82 283 .6 284 .1 26. 91 756 .3 45.4 72. 03 553 . 03 70 .3 98. 90 1.04 374 .1 28. 62 61.68 221 .3 36.3 66. 41 625 . 98 868 .1 11.05 736 .72 876 .1 89.5 296 .61 2.76 2.42 0 41.86 220 . 94 546 .95 26. 53 1.79 1.2 767 .1 72. 62 319 .98 0 940 .2 94. 38 1.47 25.6 0 999 . 30 1.47 1.89 21.3 45. 69 984 . 28 502 .4 25.2 52. 60 1. 58 1.2 30. 73 677 .4 304 .22 1. 56 340 .07 0 156 .74 289 .7 13.66 268 . 64 891 . 56 1. 82 1.9 57. Loans & Advances Inventories Sundry Debtors Cash and Bank M ar ch 20 10 M ar ch 20 09 M ar ch 20 08 M ar ch 20 07 M ar ch 20 06 61. 16 566 . 05 61.0 47.96 495 . 07 2. 64 701 .88 0 719 . 40 772 . 38 1.7 00. 38 1. 77 61.3 56.04 248 .

5 1 50.4 3 40.0 2 89.8 9 0.45 20.6 9 0 440.454.84 15.89 4.527.7 8 205.7 2 199.06 1.3 88.8 4 256.8 4 123.526.69 147. 43 1.3 42.4 1 85.16 14.3 46.71 217.446.2 89.3 27.Profit & loss Account Particul ars Mar10 Mar09 Mar08 Mar07 Mar06 INCOM E: Sales Turnover Excise Duty Net Sales Other Income Stock adjustment Total Income EXPENDITUR E: Raw Materi als power & fuel cost Employee Cost Other Manufacturin g Expenses Selling and Administratio n Expenses Miscellaneou s Expenses Less: Preoperative Expenses 1.3 40.4 3 93.6 4 199.7 1 169.7 2 231.6 6 249.8 1 199.3 3 218.6 5 391.1 9 1.8 7 381.9 18. 64 1.5 5 213. 22 1.51 407.1 5 227. 09 1.62 1.3 50.32 1.5 8 0 481.6 4 152.1 6 26.4 02.48 14.25 195.2 91.39 1.2 6 123.7 6 107.7 9 82.8 6 1.8 1 47.8 9 0.6 6 190.50 155.1 7 89.3 20. 69 7 1.10 111.59 1.13 107.1 9 185.2 7 0 71 .3 06.525.22 1.9 3 432.79 1.

42 32.12 301.28 234.81 -299.96 238.3 9 88.57 0 90.11 2.29 97.15 72.21 9.2 6 27.7 4 278.04 -49.2 6 35.85 0 1.58 10 121 23.17 8.91 3.71 0 55.12 40.51 0 1.8 3 42.5 5 -22 2.32 25.69 72 .65 0.4 0 59.42 10.7 4 15.07 81.5 3.58 108.2 5 0 9 55.5 4 0 1.8 9 30.1 7 30.2 5 60. below Net Profit P&L Balance brought forward Statutory Appropria tions Appropriatio ns P&L Balance carried down Dividend 1.3 271.35 278.7 9 62.1 2 93.01 210.9 1 47.17 5.15 -31.96 270.1 7 106.15 202.0 4 111.3 17.84 80.74 0 0 -7.03 129.0 7 98.1 162.0 1 0 0 0 0 0 24.06 15.3 0 1.8 9 167.84 222.1 5 81.72 162.3 8 85.Capitalised Total expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax Deferred Tax Reported Net Profit Extraordinar y Items Adjusted Net Profit Adjst.68 3.22 7.73 348.9 8 72.19 326.69 167.81 125.75 -8.2 0.62 227.08 -4.30 3.1 0 326.

6 5 15 7. 78 24 .3 5 14 1. 51 26.0 9 0 183. 6 2 0. 54 Net Cash From Operating Activities Net Cash (used in)/from Investing Activities -361.08 0 7 8 1 4.08 220. 1 1 6.9 4 19.6 1 11.37 227.13 Net Cash (used in)/from Financing Activities 31.8 1 32. 25 73 .08 191.3 0 50 32.9 4 Cash Flow Statement Particulars Net Profit Before Tax Mar 06 11 6.7 5 12 0.01 220. 1 5 1 5. 5 8 2 5. 0 3 26 5.0 0 50 19. 89 1 3 7.Preference Dividend Equity Dividend % Earnings Per ShareUnit Curr Earnings Per Share(Adj)Unit curr Book ValueUnit Curr 0 0 0 0 0 25 11. 76 11. 57 Net (decrease)/increase In Cash and Cash Equivalents 13. 5 2 1 3.5 0 10 9. 1 8 -194.22 Mar 09 8 6.4 5 15 4.8 6 Mar 07 17 3. 2 0 3. 9 9 5 7.8 2 Opening Cash & Cash Equivalents 13.5 8 Mar 08 1 5 6.0 4.5 6 28 7. 7 9 2 5. 6 1 Mar 10 58 .9 7 21 .

can be grouped into various classes according to financial activity or function to be evaluated. 8 2 46 . calculated from the accounting data.8 0 FIXED ASSETS MANAGEMENT Fixed Assets (Definition) Fixed asset is an asset held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business. Similarly. 03 2 5. owners and management. Short term creditors’ main interest is in the liquidity position or the short term solvency and profitability of a firm. Management is interested in evaluating every aspect of the firm’s 74 . RATIO ANALYSIS Types of Ratios Several ratios. Furthermore. the determination of whether an expenditure represents an asset or an expense can have a material effect on an enterprise's reported results of operations. The parties interested in financial analysis are short-term and long term creditors.Closing Cash & Cash Equivalents 13. Fixed assets often comprise a significant portion of the total assets of an enterprise. 6 1 2 1. owners concentrate on the firm’s profitability and financial condition. and therefore are important in the presentation of financial position. 25 25.

loss of creditors’ confidence. 75 . They have to protect the interest of all parties and see that the firm grows profitably. In fact. A firm should ensure that it does not suffer from lack of liquidity. idle assets earn nothing. The failure of a company to meet its obligations due to lack of sufficient liquidity. or even in legal tangles resulting in the closure of the company. but establishing a relationship between cash and other current assets to current liabilities. it is necessary to strike a proper balance between high liquidity and lack of liquidity. provide a quick measure of liquidity.performance. Activity ratios 4. Leverage ratios 3. but liquidity ratios. In view of the requirements of the various users of ratios. we may classify them into the following four categories: 1. analysis of liquidity needs the presentation of cash budgets and cash and fund flow statements. Therefore. Liquidity ratios It is extremely essential for a firm to be able to meet its obligations as they become due. Liquidity ratios 2. The firm’s funds will be unnecessarily tied up in current assets. Liquidity ratios measure the ability of the firm to meet its current obligations. Profitability ratios. will result in a poor credit worthiness. 1. and also that it does not have excess liquidity. A very high degree of liquidity is also bad.

A ratio of greater than one means that the firm has more current assets than current claims against them. such as marketable securities. It indicates the availability of current assets in rupees for every one rupee of current liability. are (i) Current ratio (ii) Quick ratio Current Ratio Current ratio is calculated by dividing current assets by current liabilities. income-tax liability and long-term debt maturing in the current year. 76 . debtors and inventories. The current ratio is a measure of the firm’s short-term solvency. short-term bank loan. Current liabilities include creditors. bills payable. Current ratio= Current assets Current liability Current assets include cash and those assets that can be converted in to cash within a year. Prepaid expenses are also included in current assets as they represent the payments that will not be made by the firm in the future. accrued expenses. All obligations maturing within a year are included in current liabilities.The most common ratios. which indicate the extent of liquidity or lack of it.

Quick Ratio Quick ratio, also called acid test ratio, establishes a relationship between quick, or liquid, assets and current liabilities. An assets is liquid if it can be converted into cash immediately or reasonably soon without a loss of value. Cash is the most liquid asset. Other assets are considered to be relatively liquid and included in quick assets are debtors and bills receivables and marketable securities. Inventories are considered to be less liquid. Inventories normally require some time for realizing into cash; their value also has a tendency to fluctuate. The quick ratio is found out by dividing quick assets by current liabilities. Quick ratio= Current assets – Inventories Current liabilities Net Working Capital Ratio The difference between current assets and current liabilities excluding shortterm bank borrowing is called net working capital (NWC) or net current assets (NCA). NWC is sometimes used as a measure of a firm’s liquidity. It is considered that, between two firms, the one having the larger NWC has the greater ability to meet its current obligations. This is not necessarily so; the measure of liquidity is a relationship, rather than the difference between current assets and liabilities. NWC, however, measures the firm’s potential reservoir of funds. It can be related to net assets: NWC ratio = Net working capital (NWC) Net assets (NA)


2. Leverage Ratios
The short-term creditors, like bankers and suppliers of raw material, are more concerned with the firm’s current debt-paying ability. On the other hand, long-term creditors, like debenture holders, financial institutions etc. are more concerned with the firm’s long-term financial strength. In fact, a firm should have a strong short-as well as long-term financial position. To judge the long-term financial position of a firm, financial leverage, or capital structure ratios are calculated. These ratios indicate mix of funds provided by owners and lenders. As a general rule, there should be an appropriate mix of debt and owners’ equity in financing the firm’s assets. The manner in which assets are financed has a number of implications. First, between debt and equity, debt is more risky from the firm’s point of view. The firm has a legal obligation to pay interest to debt holders, irrespective of the profit made or losses incurred by the firm. If the firm fails to pay to debt holders in time, they can take legal action against it to get payments and in extreme cases, can force the firm into liquidation. Second, use of debt is advantageous for share holders in two ways: (a) They can retain control of the firm with a limited stake and (b) Their earning will be magnified, when the firm earns a rate of return on the total capital employed higher than the interest rate on the borrowed funds. The process of magnifying the shareholders’ return through the use of debt is called “financial leverage” or “financial gearing” or “trading on equity.” However, leverage can work in opposite direction as well. If the cost of debt

is higher than the firm’s overall rate of return, the earning of shareholders will be reduced. In addition, there is threat of insolvency. If the firm is actually liquidated for non payment of debt-holders’ dues, the worst suffers will be shareholders- the residual owners. Thus, use of debt magnifies the shareholders’ earnings as well as increases their risk. Third, a highly debtburdened firm will find difficulty in raising funds from creditors and owners in future. Creditors treat the owners’ equity as a margin of safety; if the equity base is thin, the creditors risk will be high. Thus, leverage ratios are calculated to measure the financial risk and the firm’s ability of using debt to shareholders’ advantage. Leverage ratios may be calculated from the balance sheet items to determine the proportion of the debt in total financing. Many variations of these ratios exist; but all these ratios indicate the same thing-the extent to which the firm has relied on debt in financing assets. Leverage ratios are also computed from the profit and loss items by determining the extent to which operating profits are sufficient to cover the fixed charges.

3. Activity Ratios
Funds of creditors and owners are invested in various assets to generate sales and profits. The better the management of assets, the larger the amount of sales. Activity ratios are employed to evaluate the efficiency with which the firm manages and utilizes its assets. These ratios are also called turnover ratios because they indicate the speed with which assets are being converted or turned over into sales. Activity ratios, thus, involve a relationship between sales and assets. A proper balance between sales and assets generally reflects


80 . Thus old assets with lower book values may create a misleading impression of high turnover without any improvement in sales. Unutilized or under-utilised assets increase the firm’s need for costly financing as well as expenses for maintenance and upkeep. Net assets turnover= Sales Net assets It may be recalled that net assets include net fixed assets and net current assets. that is. (ii) Total assets turnover (iii) Fixed and current assets turnover and (iv) Working capital turnover. A firm’s ability to produce a large volume of sales for a given amount of net assets is the most important aspect of its operating performance. Since net assets equal capital employed.that are managed well. net assets turnover may also be called capital employed turnover. current assets minus current liabilities. Here we will take different activity ratio: (i) Net assets turnover. Net assets turnover The firm can compute net assets turnover simply by dividing sales by net assets. Several activity ratios can be calculated to judge the effectiveness of asset utilization. The net assets turnover should be interpreted cautiously. The net assets in the denominator of the ratio include fixed assets net of depreciation.

This ratio shows the firm’s ability in generating sales from all financial resources committed to total assets.Some analysts exclude intangible assets like goodwill. 81 .. so (TA=NFA+CA) Fixed and Current assets turnover The firm may wish to know its efficiency of utilizing fixed assets and current assets separately. accumulated losses or deferred expenditures may also be excluded for calculating the net assets turnover ratio. gross fixed assets may be used to calculate the fixed assets turnover for a meaningful comparison. While computing the net assets turnover. Fixed assets turnover= The current assets turnover is: Current assets turnover= Sales Current assets Sales Net fixed assets The use of depreciated value of fixed assets in computing the fixed assets turnover may render comparison of firm’s performance over period or with other firms meaningless. Therefore. Similarly. fictitious assets. Total assets turnover Some analysts like to compute the total assets turnover in addition to or instead of the net assets turnover. patents etc. Total assets turnover= Sales Total assets Total assets (TA) includes net fixed assets (NFA) and current assets (CA).

Net current assets turnover= Sales Net current assets 4. it is a fact that sufficient profits must be earned to sustain the operations of the business to be able to obtain funds from investors for expansion and growth and to contribute towards the social overheads for the welfare of the society. suppliers or social consequences. Profit is the difference between revenue and expenses over a period of time (usually one year).Working capital turnover A firm may also like to relate net current assets to sales. Profit is the ultimate ‘output’ of a company and it will have no future if it fails to make sufficient profits. The profitability ratios are calculated to measure the operating 82 . employees. customers and society. Profits are essential. the financial manager should continuously evaluate the efficiency of the company in term of profits. Profitability Ratios A company should earn profits to survive and grow over a long period of time. Except such infrequent cases. It may thus compute net working capital turnover by dividing sales by net working capital. It is unfortunate that the word ‘profit’ is looked upon as a term of abuse since some firms always want to maximize profits at the cost of employees. but it would be wrong to assume that every action initiated by management of a company should be aimed at maximizing profits. Therefore. irrespective of concerns for customers.

Net assets equal net fixed assets plus current assets minus current liabilities excluding bank loans. This is possible only when the company earns enough profits. therefore. Investment represents pool of funds supplied by shareholders and lenders. Here we will consider two profitability ratio: (i) Return on investment and (ii) Return on equity Return on Investment The term investment may refer to total assets or net assets. creditors and owners are also interested in the profitability of the firm. therefore more appropriate to use one of the following measures of ROI for comparing the operating efficiency of firms: 83 . two major types of profitability ratios are calculated: • Profitability in relation to sales • Profitability in relation to investment. The conventional approach of calculating return on investment (ROI) is to divide PAT by investment. Creditors want to get interest and repayment of principal regularly.efficiency of the company. Generally. The funds employed in net assets are known as capital employed. Also. Owners want to get a required rate of return on their investment. Alternatively. capital employed is equal to net worth plus total debt. It is. as discussed earlier. it is conceptually unsound to use PAT in the calculation of ROI. PAT is affected by capital structure. while PAT represent residue income of shareholders. Besides management of the company.

and using only the ordinary shareholders’ capital. Return on Equity Common or ordinary shareholders are entitled to the residual profits. the earnings may be distributed to shareholders or retained in the business. share premium and reserves and surplus less accumulated losses. The shareholders’ equity or net worth will include paid-up share capital. Net worth can also be found by subtracting total liabilities from total assets. A return on shareholders’ equity is calculated to see the profitability of owners’ investment. 84 . If a company has both preference and ordinary share capital. Nevertheless. Return on net assets is equivalent of return on capital employed.Return on Investment= EBIT(1-T) Total assets Or Return on Investment= EBIT(1-T) Net assets Where above formula is for return on total assets and second formula is for return on net assets. The rate of dividend is not fixed. the net profits after taxes represent their return. ROE should be calculated after deducting preference dividend from PAT. The return on equity is net profit after taxes divided by shareholders’ equity which is given by net worth.

equity of the company should compared with the ratios for other similar companies and the industry average. which has the responsibility of maximizing the owners’ welfare. This ratio is. thus. this ratio is one of the most important relationships in financial analysis. Here certain ratios are calculated according to the data of balance sheet of last five years of RAYMOND TEXTILE. of great interest to the present as well as the prospective shareholders and also of great concern to management. The ratio of net profit to owners’ equity reflects the extent to which this objective has been accomplished. This will reveal the relative performance and strength of the company in attracting future investments.Return on Equity= Profit after taxes Net worth (Equity) Return on Equity indicates how well the firm has used the resources of owners. The earning of a satisfactory return is the most desirable objective of a business. The returns on owners. In fact. Raymond Textile Balance sheet As on 31st March 85 . INDIA.

07 2561.(Rs.2 32974.1 6 4332.3 6138.7 54667. 38 29694.0 6 14442.8 67765. 56 2182. 16 24846. 21 5967. 85 4164. 13667 2.1 70159.5 1 98447.4 6138.2 8 89178. 36 30447.1 7 3315. 24 2105.0 8 11285 6. 28 6402. 84 67605.9 5 13369 0. 12300 3. 85 2837.3 27827.9 5 10656 0. 64 8568.4 9 23361.7 3 20218 5.3 6 10473 0.1 11115 3 6138.7 3 21996 4. loans & advances Inventories Debtors Cash Others Loans 17133 9. 36 26877. In lacs) 200910 200809 200708 200607 200506 sources of fund share holders' fund shar capital share warrant reserve & surplus Loan Funds secured loans unsecured loans deffered tax liability total = 75695. 5 94041. 96 5587.9 4 5066. 81 47621.5 8 23555 9.9 6138. 86 .2 50204. 16 37472. 74 2503. 85 4164. 61 43575. 51 1358.5 Application Fixed Assets gross block Less: depreciation net block capital work in progress Investment current assets.4 2969. 58 94041. 17006 4. 18 28988. 56 28450.2 25212 9. 13454 0. 56 22120.0 8 2086.0 8 2086.4 8 5775. 8 68907 15604.4 77297. 76 71952.0 3 24466 7 86884.5 55397. 5 28366.0 8 12947 7.2 8 88859.3 62587. 28 31904. 61 4679.0 8 6138. 35 2656. 05 22074. 81 73660.9 21715.4 56686. 46 34040.3 4 23931.

= 82490.30 35799.63 less: current liabilities and provisions current liabilities Provision net assets total = 30367.33:1 For the year 2007.26 =2.56 =2. 48 25212 9.4 2 57282.18 = 2. = 94342.63:1 87 . 01 20218 5. 33 23555 9.1 Ratio Analysis Current ratio Current ratio= Current assets Current liability For the year 2006.4 86 29083.6 6 45343. 9 8063.22:1 For the year 2008. = 77011. 03 21996 4. 26 24466 7 33 35044.2 38 28210. 03 7553.8 4 44013.7 3 57518. 34 6770.6 2 57154.7 06 26227.19 32998. 23 5966. 14 5311.59 37147.

85.82 35678. In year 2007. So the current ratio of a company for the year 2006 is 2.33 and also increase in current liabilities up to Rs 41010. Company’s current asset for the year 2006 was Rs 77011.61:1 Interpretation of Current Ratio Figure showing Current ratio As a conventional rule. company’s current assets increased up to Rs 94342.30 with decrease in current liabilities up to Rs 35799. So the ratio for the year is 2.19 and a current liability was Rs 32998. In year 2009.39:1 For the year 2010. = 98165. company’s current assets increase up to Rs 82490.For the year 2009. So the ratio for that year reduced to 2.56.33 41010. there is an increase in current assets of a company up to Rs 98165. So the current ratio for the company reduced to 2.26. In year 2008.33:1.85 =2.63:1.22:1 in that year. 88 .56 =2. a current ratio of 2 to 1 or more is consider satisfactory.59 with increase in current liabilities up to Rs 37147.39:1. = 92960.18.

Company should invest money in such way that it can get some return on such investment.82.13 times 89 .61:1. It interprets that company have more working capital than its actual requirements. there is a reduction in current assets of a company in comparison of last year and it reduced Rs to 92960. Total assets turnover = 140637 128524. Total assets turnover = 137497. But current liabilities of a company also reduced to Rs 35678. It shows that there is no significant impact of current assets and liabilities of a company on the fixed assets of a company.In year 2010. So company should invest in fixed assets rather than investing in such non performing working capital.09 times For the year 2007. So the ratio for the year 2010 is increased to 2.17 121517. Company can earn interest by investing such working capital in any other investments.82 = 1. Total Assets Turnover Total Assets Turnover = sales Total assets For the year 2006.56. The ideal current ratio for a company is 2:1. Company has a current ratio more than 2:1 for all the years. This trend of current ratio interprets that there is no significant change in the current ratio of a company during last five years.18 = 1.

70 131853. 90 . Total assets turnover = 146015. Net assets turnover may also be called capital employed turnover.72 = 0.11 times For the year 2009.91 times For the year 2010.92 times Interpretation of net assets turnover figure shows net assets turn over The firm can compute net assets turnover simply by dividing sales by net assets.39 = 0. Total assets turnover = 142706.For the year 2008.78 163269.48 155488.91 = 1. Total assets turnover = 147779.

92 times in the year. So the ratio for the year increased to 1.11 times because increase in total assets is higher in proportion of increase in sales.17 but the total assets of a company also decreased to Rs 121517. The growth of total assets was higher in comparison of sales because of capital formation of assets.18.82. For the year 2010. So the ratio for the year was 0. It interprets that company is producing Rs.13 of sales for one rupee of capital employed in net assets. For the year 2007. 1. there is a decline in both sales and total assets of a company to Rs 142706.48 and Rs 155488. So the ratio for the year was 1. sales of a company shows increased to Rs 146015. Net Assets Turnover Net assets turnover = Sales Net assets 91 .70 and also increased in its total assets. So there is a slight increase on ratio up to 0. 1. For the year 2009.91. sales of a company decreased to Rs 137497.13 times. For the year 2008.39 respectively.09 times.78 and also increase in total assets of a company to Rs 163269. So the ratio shows decreased to 1. But the reduction in sales was lower in proportion of reduction of total assets. sales of a company increased to Rs 147779.09 of sales for one rupee of capital employed.72. It interprets that company is producing Rs. sales of a company was Rs 140637 and the total assets of a company for a year was Rs 128524. So there is a reduction in ratio even there is an improvement in sales.For the year 2006.

18 = 0.62 times For the year 2009.59 times For the year 2010.48 244666. Net assets turnover = 146015.17 219964. Net assets turnover = 140637 202185 = 1.78 252129. Net assets turnover = 147779. Net assets turnover = 137497.For the year 2006.95 92 . Net assets turnover = 142706.70 236584.63 times For the year 2008.11 = 0.68 =0.66 times For the year 2007.

It creates a decrease in the ratio of a company. sales of a company was Rs 140637 and net assets of a company was Rs 202185. For the year 2008.66 for one rupee investment in fixed and current assets together.68. The firm can compute net assets turnover by dividing sales by net assets. 1.58 times Interpretation for net assets turnover Figure showing net assets turnover This ratio shows the firm’s ability in generating sales from all financial resources committed to net assets.17 and net assets of a company increased to Rs 219964.63 times. But the ratio of a company slightly 93 . So the net assets turnover for the company for that year was 1.66 times which interprets that company was generating a sales of Rs. Ratio of the company for that year was 0. For the year 2007.70 and net assets of a company also increased. for the year 2006.= 0. This was happen mainly because of decrease in sales and increase of a net assets. sales of a company increased up to Rs 146015. sales of a company decreased to Rs 137497.

62 times.59 times.decline because the growth of net assets was little more in proportion of growth of sales.66 Current assets turnover = 140637 77011. But same as previous year ratio decline to 0. Fixed and Current assets turnover Fixed assets turnover = And Current assets turnover = Sales Current assets Sales Fixed assets For the year 2006.58 times. For the year 2009. So the ratio decline for this year up to 0.95 respectively.48 and Rs 244666. both sales and net assets has reduced up to Rs 142706.78 and net assets also increased up to Rs 252129.18. sales of a company increased to Rs 147779. Fixed assets turnover = 140637 84512 = 1. For the year 2010.19 94 . The ratio for the year was 0.

Fixed assets turnover = 137497.67 For the year 2008.78 98165.24 =1.81 Current assets turnover = 137497.15 = 1.39 Current assets turnover = 147779.59 = 1.17 76174.33 = 1.51 95 .= 1.82 For the year 2007.70 73310.30 = 1.78 106115.87 = 1. Fixed assets turnover = 147779.17 82490.55 For the year 2009. Fixed assets turnover = 146015.70 94342.99 Current assets turnover = 146015.

0. A current asset of a company was Rs 82490.55.48 92960. the company needs respectively Rs.59 lacs while a fixed asset was Rs 76174. Fixed assets turnover = 142706. So it implies that company’s fixed assets is faster than current assets and for generating sale of one rupee.60 investment in fixed assets and Rs 0. In year 2007.82 = 1. the reciprocal of a company’s fixed assets turnover ratio was 0. A firm can compute fixed assets turnover simply by dividing sales by fixed assets and can compute current assets turnover by dividing sales by current assets.For the year 2010. current asset of a company exceeds the value of fixed assets.60 and reciprocal of current assets turnover was 0.48 98206.45 Current assets turnover = 142706.55 in current assets.60. In year 2006. It implies that company’s current assets is faster than its fixed assets and for generating a sale of one 96 .55 and reciprocal of current assets turnover ratio was 0.13 = 1. So the reciprocal of a fixed asset turnover ratio was 0.15 lacs.54 Interpretation of Fixed and Current asset turnover The firm may wish to know its efficiency of utilizing fixed assets and current assets separately.

In year 2010.50 investment in fixed assets and Rs.65 in current assets. In year 2009. So the reciprocal of the fixed assets turnover was 0. But current assets reduced more in proportion of fixed assets. 0.rupee.66 investment in current assets.60 in current assets. So the reciprocal of a fixed assets turnover was 0. 0.69 and reciprocal of current assets turnover was reduced to 0. so it implies that company’s current assets is faster than its fixed assets and for generating a sale of one rupee.65. So it implies that fixed assets of a company is faster than current assets and for generating a sale of one rupee.50 while the reciprocal of a current assets was 0. So the reciprocal of a fixed assets turnover was reduced to 0. Current assets of a company was increased up to Rs 94342.72 investment in fixed assets and Rs.55 investment in fixed assets and Rs. 0. both fixed and current assets of a company were increased but fixed assets increased more than current assets. the company needs respectively Rs. In year 2008. both fixed and current assets of a company reduced.65. the company needs respectively Rs.69 investment in fixed assets and Rs.72 and reciprocal of current assets turnover was 0.87 lacs. the company needs respectively Rs. 97 .30 lacs and a fixed asset was further reduced to Rs 73310.65 investment in current assets.66. trend was also same. 0. It implies that fixed assets of a company is faster than the current assets of a company and for generating a sale of one rupee. 0. 0. 0. 0. the company needs respectively Rs.

03 = 3. Working capital turnover = 146015.20 times For the year 2007.04 = 2. Working capital turnover = 140637 44013.Working Capital Turnover Working capital turnover = Sales Net current assets For the year 2006.03 times For the year 2008. Working capital turnover = 137497.49 times For the year 2009.17 45343.01 = 3. 98 .70 58543.

the company needs Rs.04. It may thus compute net working capital turnover by dividing sales by net working capital.49 times Interpretation of working capital turnover Figure shows working capital turnover A firm may like to relate net current assets to sales.70 which is more than previous year and current assets was also more than previous year that is Rs 58543. 0.26 = 2. a sale of a company was Rs 140637 and a current asset was Rs 44013.48 57282. 0. The ratio increased because of the increase in current assets of a company.59 times For the year 2010.40 which implies that for one rupee of sales. a sale of a company was Rs 146015. So the reciprocal of the ratio was 0. For the year 2006.78 57154.31 of working capital. For the year 2008. For the year 2007. 99 .40 of working capital.33.03. So the reciprocal of the ratio implies that for one rupee of sales. a sale of a company was reduced to Rs 137497. the company needs Rs.Working capital turnover = 147779. Working capital turnover = 142706. so the reciprocal of the ratio was 0.48 = 2.17 and a current asset was increased up to Rs 45343.01.

6%) For the year 2007. a sale of a company increased to Rs 147779. The gaps for all these years are met from long term sources of funds of a company.68 = 0. For the year 2010.48 and there is a slight increase in current assets of a company which leads to little increase in ratio.39.40.075 or (7. Ratio for the year is 0.5%) For the year 2008. Return on Investment = 23823. Return on Investment Return on Investment = EBIT (1-T) Total assets For the year 2006. Return on Investment = 16370. Return on Investment = 8169.66 (0.78 but the current assets of a company reduced to Rs 57154.056 or (5.7) 100 . a sale of a company reduced to Rs 142706.7) 202185 = 0.48 (0.28 (0.For the year 2009.So the reciprocal of the ratio slightly decline to 0.7) 219964.48.

95 =0. 101 .48 lacs profit before tax.34 (0.11 = 0. And the total asset of a company was Rs 236584.6%.30 lacs.06) (0. In year 2006. Because of the reduction in profit. PAT of a company was Rs 5718.006 or (0.76 lacs.6%) Interpretation of return on investment Figure shows return on investment The conventional approach of calculating return on investment is to divide PAT by investment.33 lacs.4%) For the year 2009. In year 2007. Firm can compute the return on investment which is yield by investing in total assets simply by dividing PAT by total assets. The total asset of a company was Rs 236584.7) 244666.5% return on investment for that year.024 or (2. In year 2008.4% in that year.11 lacs. the return on investment breakdown to 2. Company has PAT of Rs 11459.3%) For the year 2010. So the return on investment for the company for the year 2006 was 5. After the payment of 30% tax.7) 252129.18 = -0. And the total asset of the company was Rs 202185 lacs. Return on Investment = (-29755. There was a huge reduction in the profit of a company because of recession. PAT of a company was Rs 16676. company earns Rs 16370.11 lacs. Return on Investment = 2004.236584. So the company got 7. Company pays 30% tax on profit every year.083 Loss or (-8.

Equity to Fixed assets ratio = 6138.54 lacs.In year 2009.6%.084 or (8.081 or (8.08 76174.15 = 0.076 or (7. In year 2010.95 lacs.1%) For the year 2008. company overcomes from the effect of recession. Because of the low profit and high rate of investment. Equity to fixed assets ratio = 6138.87 = 0.4%) 102 . Return on investment is very low but in positive nature.6%) For the year 2007. So the ratio became negative for that year. Equity to fixed assets ratio = 6138.81 = 0.3%. effect of recession continues and because of that company faced loss of Rs 20828.04 lacs. The return on investment for the year is 0.08 73310. And the total assets of a company are Rs 244666. The ratio for that year was -8.08 84511. Equity to Fixed Assets Ratio Equity to fixed assets ratio = Total equity shares Fixed assets For the year 2006. Company has made PAT of Rs 1403.

8%.13 lacs. 103 .24 = 0.063 or (6. So ratio increase up to 6.3%. This leads to decline in ratio up to 5.6 %.08 106115. In year 2008. the fixed asset of a company was decreased up to Rs 76174. So the ratio for the year was 7. Equity to fixed assets ratio = 6138. Because of such reduction. Equity to fixed assets ratio = 6138. Equity of a company from last 5 years is Rs 6138.24 lacs because of capital formation.08 98206. This creates further improvement in ratio up to 8. firm compute the equity on fixed assets ratio to know its equity in relation with fixed assets simply by dividing its equity shares by its fixed assets. If equity shares are low and fixed assets is high than ratio is low and vice-eversa.15 lacs.4%. In year 2010.For the year 2009. For the year 2006.3%) Interpretation of Equity to Fixed assets ratio Many times. the fixed asset of a company was Rs 84511. the fixed asset of a company was increased to Rs 106115.8%) For the year 2010. the fixed asset of a company again reduced in comparison of previous year up to Rs 98206.13 =0.08 lacs. In year 2009.1%.81 lacs.058 or (5.87 lacs. In year 2007. ratio increase up to 8. Equity of a company is same or unchanged from last 5 years. the fixed asset of a company was further reduced to Rs 73310.

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