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EXECUTIVE SUMMARY The Summer Training being undertaking for the purpose of MODERN TECHNIQUES OF ANALYSIS OF FINANCIAL STATEMENT

where I come to realize various financial aspects such as performance reviews, financial growth and impact, annual report and matter related to corporate governance. The study involved analysis of the financial impact of the company internally as well as externally. I also intend to find out about how the leading brand image of RSWM Ltd. In textile sector has been performed by deeply undertaken their rations as schedule affixed as annexure to the end of the summer training report.

Trainee Name Title of the Project

KAMLESH KUMAR SHARMA MODERN TECHNIQUES OF ANALYSIS OF

FINANCIAL STATEMENT Project Done Under


Project Duration College Mr. ANIL JAIN (G.M. Commercial) 60 Days APEX INSTITUTE OF MANAGEMENT & SCIENCE Mansarovar, Jaipur

INDIAN TEXTILE INDUSTRY

INDIAN TEXTILE INDUSTRY


The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture. Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. It has a unique position as a selfreliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing; it is a major contribution to the country's economy. Its vast potential for creation of employment opportunities in the agricultural, industrial, organised and decentralised sectors & rural and urban areas, particularly for women and the disadvantaged is noteworthy. Although the development of textile sector was earlier taking place in terms of general policies, in recognition of the importance of this sector, for the first time a separate Policy Statement was made in 1985 in regard to development of textile sector. The textile policy of 2000 aims at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion. The main markets for Indian textiles and apparels are USA, UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan. The main objective of the textile policy 2000 is to provide cloth of acceptable quality at reasonable prices for the vast majority of the population of the country, to increasingly contribute to the provision of sustainable employment and the economic growth of the nation; and to compete with confidence for an increasing share of the global market.

CURRENT SCENARIO Developing countries with both textile and clothing capacity may be able to prosper in the new competitive environment after the textile quota regime of quantitative import restrictions under the multi-fibre arrangement (MFA) came to an end on 1st January, 2005 under the World Trade Organisation (WTO) Agreement on Textiles and Clothing. As a result, the textile industry in developed countries will face intensified competition in both their export and domestic markets. However, the migration of textile capacity will be influenced by objective competitive factors and will be hampered by the presence of distorting domestic measures and weak domestic infrastructure in several developing and least developed countries. The elimination of quota restriction will open the way for the most competitive developing countries to develop stronger clusters of textile expertise, enabling them to handle all stages of the production chain from growing natural fibres to producing finished clothing, The OECD paper says that while low wages can still give developing countries a competitive edge in world markets, time factors now play a far more crucial role in determining international competitiveness. Countries that aspire to maintain an export-led strategy in textiles and clothing need to complement their cluster of expertise in manufacturing by developing their expertise in the higher value-added service segments of the supply chain such as design, sourcing or retail distribution. To pursue these avenues, national suppliers need to place greater emphasis on education and training of services-related skills and to encourage the establishment of joint structures where domestic suppliers can share market knowledge and offer more integrated solutions to prospective buyers. The textile industry is undergoing a major reorientation towards non-clothing applications of textiles, known as technical textiles, which are growing roughly at twice rate of textiles for clothing applications and now account for more than half of total textile production. The processes involved in producing technical textiles require expensive equipments and skilled workers and are, for the moment, concentrated in developed countries. Technical textiles have many applications including bed sheets; filtration and abrasive materials; furniture and healthcare upholstery; thermal protection and blood-absorbing materials; seatbelts; adhesive tape, and multiple other specialized products and applications. India must take adequate measures for capturing its market by promoting research and development in this sector. The mood in the Indian textile industry given the phase-out of the quota regime of the multifibre arrangement (MFA) is upbeat with new investment flowing in and increased orders for the industry as a result of which capacities are fully booked up to April 2005. As a result of various initiatives taken by the government, there has been new investment of Rs.50,000 crore in the textile industry in the last five years. Nine textile majors invested Rs.2,600 crore and plan to invest another Rs.6,400 crore. Further, India's cotton production increased by 57% over the last five years; and 3 million additional spindles and 30,000 shuttle-less looms were installed.

The industry expects investment of Rs.1,40,000 crore in this sector in the post-MFA phase. A Vision 2010 for textiles formulated by the government after intensive interaction with the industry and Export Promotion Councils to capitalise on the upbeat mood aims to increase India's share in world's textile trade from the current 4% to 8% by 2010 and to achieve export value of US $ 50 billion by 2010 Vision 2010 for textiles envisages growth in Indian textile economy from the current US $ 37 billion to $ 85 billion by 2010; creation of 12 million new jobs in the textile sector; and modernisation and consolidation for creating a globally competitive textile industry. There will be opportunities as well as challenges for the Indian textile industry in the post-MFA era. But India has natural advantages which can be capitalised on strong raw material base cotton, man-made fibres, jute, silk; large production capacity (spinning - 21% of world capacity and weaving - 33% of world capacity but of low technology); vast pool of skilled manpower; entrepreneurship; flexibility in production process; and long experience with US/EU (European Union). At the same time, there are constraints relating to fragmented industry, constraints of processing, quality of cotton, concerns over power cost, labour reforms and other infrastructural constraints and bottlenecks. E.g., cost of power was Rs. 8 per garment in India whereas in China it was only Rs. 2 per garment. Further, for the benefit of exporters, there should be a state-owned cargo shipping mechanism. Several initiatives have already been taken by the government to overcome some of these concerns including rationalisation of fiscal duties; technology upgradation through the Technology Upgradation Fund Scheme (TUFS); setting up of Apparel Parks; and liberalisation of restrictive regulatory practices. Shri Kamal Nath, Union Minister of Commerce & Industry, has said that India will take up the issue of non-tariff barriers (NTBs) in the World Trade Organisation (WTO) Doha round of multilateral trade negotiations, which are expected to gather steam from March 2005 onwards On the eve of republic day president Kalam said that. "India is presently exporting six billion U.S. Dollars worth of garments, whereas with the WTO regime in place, we can increase the production and export of garments to 18 to 20 billion U.S. Dollars within the next five years. This will enable generation of employment in general and in rural areas in particular. By tripling the export of apparels, we can add more than 5 million direct jobs and 7 million indirect jobs in the allied sector, primarily in the cultivation of cotton. Concerted efforts are needed in cotton research, technology generation, transfer of technology, modernisation and upgrading of ginning and pressing factories and an aggressive marketing strategy."

ORGANIZATION PROFILE

RSWM LIMITED

Journeying into a bright future


Our vision is to forge ahead into the new millennium with an immediate sense of purpose and to be seen as the undisputed leader, fully equipped to deliver the best, across the diverse spectra of our many businesses, fuelled by a commitment to invest in plants, machinery, processes and, most importantly, our people - Team Bhilwara: all towards satisfying and fulfilling our customers needs in todays global environments. Ravi Jhunjhunwala Group Chairman

ABOUT LNJ GROUP


The LNJ Bhilwara Group is a diverse, multi-location and multi-product conglomerate established in 1961, having business interests in Textiles, Graphite Electrodes, Power Generation, Sponge Iron, Information Technology & IT Enabled Services. Headquartered at Noida (near New Delhi), the Group employs 25,000 people and has 18 production units spread across the country. The fact that export earnings comprise as much as 45% of the groups turnover of Rs.1687 crores during 2000-2001 underlines its high quality standards. The Groups plants are all state-of-the-art and having the latest technology from world leaders. The Group manufactures a complete range of yarns, fabrics, knitted fabrics and knitwears. In the recent past, the group has also launched new range of fabrics: Flame Retardant, Lycra, Polynosic and Tencel. The Group has also ventured into international quality Specialised Automotive Fabrics and is currently supplying to the major automobile companies in India. The group has been servicing world class customers and leading several global brands for their knitted garments. The domestic brands, Mayur Suitings, BSL Suitings, La Italia Trousers & Shirts and Buddy Davis Leisurewears are well respected by the customers. The Graphite exports constitute about 80% of total sales volumes of graphite division. In its four-decade long existence, the group has come to be identified with quality and world-class technologies. Seven Group companies have been awarded ISO 9002 certification for their exemplary quality services. THE FLAGSHIP In 1959, Mr. L.N. Jhunjhunwala was given the license to set up a medium sized textile mill at Bhilwara in Rajasthan at a cost of Rs. 6 million - Rajasthan Spinning & Weaving Mills Ltd. (RSWM). This was the first textile mill of the Company and the Group. And by 1968 - 69, RSWM was manufacturing India's first polyester viscose (PV) blended yarn, which soon became a runaway success. Thereafter, the company moved from strength to strength. INTERNAL CONTROL SYSTEMS The Company has an adequate internal control system. The effectiveness of he internal control system is being further strengthened through implementation of a fully integrated ERP package. Internal / Management audits of all the units of the Company are regularly conducted by independent auditors.

HUMAN RESOURCES DEVELOPMENT The Company considers human resource development as a key element in its growth. The Company has Human Resource Development department working at all its units and corporate office with a special focus on the training and development of employees. The Company conducts human resource development programme for its workers and staff separately from time to time to increase the productivity as well as efficiency of the operations. The workers training programme is also conducted at all units of the Company through out the year. The Company provides best exposure to its technical and marketing staff at both domestic and international level. A Total Quality Management (TQM) programme was recently conducted by the Company under the supervision of a leading consultant. Normal Industrial Relations continued at all Units of the Company. Your Directors wish to place on record their appreciation for the valuable contribution made by all the employees in the operations of the Company during the year. The Company had 6000 employees as at the end of the financial year 2000-2001. PARTICULARS OF EMPLOYEES Information as per Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 forms part of this report and has been given in Annexure III. AUDITORS M/s S. Bhargava Associates, Jaipur and M/s A. L. Chechani & Co., Bhilwara, the Companys Auditors retire at the conclusion of the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. The observations of the Auditors are explained, wherever necessary, in the appropriate notes to the accounts.

ENVIRONMENT & SOCIETY Promoted nearby schools including Govt. HS School Kupra; Govt. Middle School Lodha, Govt. Middle Girls School Kupra, Nutan Sr. Sec. School - Mohan Colony etc. Company instrumental in starting the Govt. Girls College at Banswara College being run by Govt. Contributed in developing Tribal youth of Banswara in field of Sports (like cricket & archery.& athletics ) since establishment of unit through Nutan Sr. Secondary School, Jain Sports Club, Banswara Cricket Association, Nema Sports Club, Kargil Fund Raising Cricket Club and other voluntary organisations. Prizes given through District Sports officer & Tribal Sports development Institutions. Company got the link road between Dungarpur and Udaipur Roads via Janamedi village constructed by PWD. Runs "Mayur Helpline"-a 24 hour free ambulance service for trauma victims. Established a Sr. Higher Secondary School (English Medium) in 1977-78 under the name of Vivekananda Kendra Vidyalaya at Hurda affiliated to CBSE Board, imparting value based education to over 650 students Helped Deaf and Dumb School at Bhilwara by contributing substantially for the construction of the Handicapped Training Centre. The LNJ Bhilwara group is coordinating with Ministry of Social Justice & Empowerment for grants for the school. ( so far arranged grant of Rs. 1.35 crores ) Organises "Mayur Dussehra fair' for all the people in the neighbourhood. Helped various sports organisations & societies for development of Chess, Cricket & local tournaments for benefit of the younger generation. Provided ECG machine & generator sets to Gulabpura Govt. hospital.

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WELCOME TO THE WORLD OF MAYUR Remember Mayur Suitings ? the brand that was once endorsed by Shah Rukh Khan with the jingle ?Mayur, Mayur, kya hit, kya fit?. LNJ Bhilwara Groups flagship brand will now feature another Bollywood superstar for endorsements ? Salman Khan! In this new campaign, Salmans tagline will be 'Stars ki pasand'. The ad shows Salman donning a Mayur suit and charming the opposite sex with his good looks and style. Mayur has had a range of Bollywood celebrities for promotions. King Khan was the first ever such star in the year 1995, for almost five years. Following suit were Chandrachud Singh and Sharad Kapoor. For a brief period, cricketer Virender Sehwag also endorsed the brand. And now, Salman Khan has been chosen as the brand ambassador so as to generate mass appeal and a better consumer-connect. Reportedly, the company narrowed down on Salman since he represents the toughness and quality of the fabric with his image. He has certain personality attributes that go very well with the brand and provide an aspirational connect with consumers across all segments in the country. Although Salman has often been misunderstood, he has a large fan following and an indisputable mass appeal, which is why he has been a favourite choice for brand endorsements. Salman has also endorsed brands like Red Tape and Lux Undergarments. If there's any fabric that has won the hearts of Indians it's Mayur. A product of Rajasthan Spinning and Weaving Mills Limited-the flagship company of the 1200Crores ($xx million) LNJ Bhilwara Group. The largest manufacturer and exporter of polyester-viscose yarn suitings from India.

Crafted from the finest cotton, polyester, viscose and wool. Mayur Suitings and Shirtings are available in a wide range of colours, shades and patterns, all over India. Be it a festival, wedding, business meeting or a formal partyMayur is always there.

Selecting and wearing the right clothes is essence of a man. Mayur Wardrobe helps you to do just that. Mayur wardrobe is a fashion guide that tells you about the latest trends from the world of men's fashion. From our wardrobe you can choose the best design and style to suit the occasion for yourself. THE MAYUR TECHNOLOGY At Mayur, we believe in always giving the customer value for money. A belief that we uphold with our constant endeavour to use the best technology available.

KD Suprema - fully computerised machinery from Italy. Contifit technology from Germany. With an investment of Rs.18 crores, the Group has set up India's most modern processing plant, which comprises some of the best machinery available world wide. This has enabled the company to impart worsted finish to P/V fabrics.

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ABOUT RSWM
Global Presence RSWM exports a complete range of yarn and fabric to over 60 countries across Europe, South Africa, Australia, Korea, Belgium, Singapore, Italy, Egypt and the Gulf countries. With nearly 30% of RSWM's production exported, the Company has a significant presence in the world of textiles. RSWM has also been recognised as a Golden Trading House by the Government of India, having won the prestigious SRTEPC Export Award for several consecutive years. This makes the Company truly global, yet truly Indian. RSWM's Gulabpura unit has the distinction of being India's first composite textile mill to be accorded the coveted ISO 9002 and IS/ISO 9001:2000 certifications. ISO-certified Quality circles function across all units. Total Quality Management (TQM) has been implemented at the Banswara unit. The Group has a highly specialised Yarn Development Centre, pilot plants and a Design & Development Studio for Fabric at Gulabpura, A Promise to our Heritage The 60s. A decade of tumultuous change, hope and promise saw John F. Kennedy take over as the President of the United States; the civil rights struggle; Woodstock and Neil Armstrong on the moon. The same decade saw the seeds of enterprise sown in the desert sands of Rajasthan, in 1961. Starting a small textile unit with 12,500 spindles - manufacturing Carded Cotton Hosiery Yarn, RSWM added another 13,000 spindles for Synthetic Yarn. This made RSWM the pioneer of Viscose and Polyester spinning on the modified Cotton System and Dyed Synthetic Fibre. This began the spinning of a superlative success story. A dream that started small but had the passion to grow, to lead, to show the way. A vision that saw a small textile unit pioneer bloom in the Synthetic Yarn market, emerging as a leader named RSWM Ltd., or simply RSWM. A name that now stands for class and quality in Yarn and Fabric. RSWM is the flagship of the LNJ Bhilwara Group. Today, the Company has installed over 2,42,000 spindles and over to weaving machines, with a product range that includes Polyester / Viscose Yarn and Fabric, Flame Retardant Fabric, Speciality Tencel and Lycra Blends. RSWM has also built Mayur Suitings into one of India's top textile brands.

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A Promise to Deliver For us, it is not enough to manufacture the finest Blended Yarn, Cotton Melange Yarn and Synthetic Yarn and Fabric. The real goal is to ensure that the finished Yarn and Fabric reach our customers on time, every time. Over the years, we have evolved proven procedures. Our Centralised Production Planning Cell (CPPC) has an experienced team of time conscious production planners. All plants are computerised, which is a key tool towards productivity enhancement, information dissemination and development. VSAT links connect all plants and offices with all shipment points continuously tracking shipping movements, ensuring timely delivery. ERP systems have been implemented across the board. The use of Pelletised cartons are a standard practice, with direct delivery on containers, proving that we mean business, and giving us the means to deliver. A Promise to Care We are an equal opportunity employer, making no distinctions between genders, religions, castes or ethnic origins. Our work force is representative of India's multi-cultural identity and rich and diverse social fabric. Our staff's welfare is not about corporate ethics but enlightened self-interest. For us they are an investment in building our business. Fostering a healthy workculture helps us retain our competitive edge. Workers in all our plants enjoy a host of facilities and benefits... housing, Medicare, cooperative stores, banking, loans, children's education, sports and recreation. We are committed to the enhancement of the professional skills of our workers and managers. We organise training workshops regularly and send our Engineers and other key personnel abroad to keep abreast of global trends in technology, product mix and design. Continuous training has seen RSWM emerge as the cradle of leadership within the group. Most of the CEOs of the group companies began their careers here as trainees. The other focus area is the development of in-house capabilities in maintenance and servicing. This helps ensure low downtime. To facilitate this, our engineering talent are deputed to our machinery suppliers' plants to master maintenance and servicing issues.

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A Promise to the Earth In a culture, where the earth is referred to as Mother, caring for the environment is ingrained. In caring for the earth we are committed to leaving our children and the generations to come a clean, green earth. A promise that we live by and live up to in everything we do. At every step in the manufacturing process, we employ eco-friendly processes not just to abide by laws but also to sustain and take forward the 'green' traditions that form a rich part of our heritage. Effluent treatment is carried out using the latest state-of-the-art technology. All the water used in fabric dyeing and finishing is recycled for use in the process-house and in horticulture. We are continuously greening all our plants, residential and other facilities, planting thousands of saplings every year. Our environmental care is executed with an eye for detail. The Banswara unit has over 42,000 square metres of greens, with over 50,000 plants having been planted on the campus and an exquisite 11-acre orchard surrounding an artificial lake. The Banswara unit was accorded the best plantation award in Rajasthan. So while we 'do' yarns and textiles, we 'think' environment. A Promise to Perform When we make a promise, we back it with all that we have - resources, infrastructure, technology and will power. In the final analysis, what counts is the way an organisation rises up to any challenge and its performance. State-of-the-art manufacturing facilities at Gulabpura, Banswara, Rishabhdev and Mandpam in Rajasthan are backed by modern testing equipment and stringent quality checks on process parameters and quality. All units and offices have implemented Enterprise Resource Planning (ERP) Management Systems ensuring timely delivery schedules. All these plants have captive in-house power generation, avoiding production downtime due to power-cuts. These facilities are totally self-sufficient in power. RSWM, Banswara, is the first textile unit in India to implement Total Quality Management (TQM) in 1997. This was made possible by empowering the team at the unit to work seamlessly together, forming one cohesive entity, driven by a single goal... that of ensuring and maintaining the highest quality, resulting in brilliant overall performance. A Promise to be One RSWM's integrated units are spread across the state of Rajasthan, each handling specialised processes, from raw fibre handling to final product delivery, on time every time. Each process smoothly collaborates with the next, ensuring a legacy of supreme quality. Every Team Member is highly trained in all the latest trends and technologies. Together they drive themselves to work efficiently around the clock.

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PRODUCTS
Yarns RSWM is engaged in manufacturing international quality blended spun yarns, fabrics and ready-to-wear garments. RSWM offers one of the broadest ranges of products including speciality products made out of unorthodox fibres. We also produce branded fibres such as Tencel. We are one of India's largest exporters of synthetic yarns. We export yarns and fabrics to over 60 countries in Europe, North & South America, the Middle East, Africa, South-East Asia and Australia. We also have a commanding position in the domestic market. Grey Yarn : Banswara & Rishabhdey Units RWSM's state-of-the-art units at Banswara and Rishabhdev are industry pioneers in the 100% grey yarn spinning and the manufacturing of grey synthetic blended yarn. Regular Products

100% Cotton 100% Normal Polyester 100% SHT Polyester Optical White Polyester & Blends Trilobal Polyester & Blends Cationic Polyester & Blends 100% Viscose Polyester/Viscose Polyester/Viscose (Macro) Polyester/Cotton Viscose/Cotton Poly/Viscose/Cotton 100% Acrylic Acrylic/Cotton Polyester/Acrylic Acrylic/Viscose Polyester/Viscose/Texturised

Industrial Yarn (Carpet Yarn, Sewing Thread)

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Speciality Products
Speciality Yarn

Grasi-soft & blends Polyamide & blends Silk blends Soya protein blends Milk protein blends Bamboo blends Wool blends Linen blends High bulk acrylic & blends Low pill poly & blends Elastane core spun Flexi core spun Rigid core spun Elastane uptwisted Slub yarn Z/z crepe yarn s

Super high twist yarn Functional Yarn Zero twist Hollow Feather touch Moisture management Anti-bacterial Energy Charcoal Antistatic Odour-preventive Uv protective Bio-degradable

Flame retardant

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Brand Specialities Tencel Viloft Amicor Cupro Coolmax Topcool Coolplus Sensura Comfortrel xp Corona Grassisorb Corona Grassisorb Trevira cs Lycra Ingeo (pla) Lenpur Filasia Poly-lamina Marl Cotdye Peevee elite Elivis Eligrass Elicot Catfil Expofil Filafil Softel Nylon wonder

Gracious Dyed Yarn: Gulabpura Unit The Gulabpura Unit specializes in the manufacture of yarn that is made from man-made fibres

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Speciality Yarn Polyester linen and viscose linen yarn Slub yarn Neppy yarn Super high twist yarn Polyester / viscose / texturised twisted yarn Tassar silk blended yarn Modal yarn Polyester / wool-blended Polyester / cotton-blended Z/z crepe yarn Polyamide / polyester / linen yarn Tencel / texturised twisted yarn Carpet yarn Cationic polyester blended Polyamide / wool Four-tone efect yarn Low pill polyester Hydrophilic acrylic

Viloft-blended yarn Commodity Products 100% polyester 100% viscose 100% acrylic Polyester viscose-blended Polyester acrylic-blended

Acrylic viscose-blended

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Hi-Tech Yarn Tencel standard & tencel a-100 yarn Tencel / polyester blends Tencel / acrylic blends Flame retardant Flame resistant Micro polyester & acrylic Polyamide blends Lycra twisted yarn Melange yarns in polyester / acrylic Optical white yarn

Core-spun Lycra yarn Industrial Yarn


Weaves

Twills Tropical Satin Fancy

Blends

Polyester / viscose Polyester / cotton Polyester / wool Tencel & its blends Lycra with polyester & viscose Linen & its blends Flame retardant blends Polyester / polyamide

Polyester / viscose / wool

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Melange Yarn: Mandpam Unit The Mandpam Unit of RSWM is equipped with state-of-the-art equipment from Italy, Switzerland, Germany, USA, Japan and the UK producing International Quality Melange Yarn. Melange Yarn Ecru, grey, anthra, charcoal black melange in more than 500 shades in cotton and cotton blends. All kinds of dyed melange yarn in more than 5000 shades in cotton and cotton-blended melange yarn. Twisted two-tone yarn in cotton and blends Cotton / polyester & polyester / cotton-blended melange yarn. Cotton / tencel-blended melange yarn Cotton / acrylic-blended melange yarn Cotton / wool-blended melange yarn Cotton / linen-blended melange yarn Cotton / nylon-blended melange yarn Pima cotton melange yarn

Organic cotton melange yarn Fibre Dyed Yarn


100% cotton fibre-dyed yarn Cotton / polyester & polyester / cotton-blended fibre-dyed yarn Cotton / tencel-blended fibre yarn Cotton / acrylic-blended fibre-dyed yarn Cotton / wool-blended fibre-dyed yarn Cotton / linen-blended fibre-dyed yarn

Cotton / nylon-blended fibre-dyed yarn Yarn-Dyed Yarn


100% cotton yarn-dyed yarn Polyester / cotton yarn-dyed yarn Cotton / tencel yarn-dyed yarn

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Cotton-blended yarn-dyed yarn

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FASHION TIPS
Men are always having problems with their styles, as more emphasis in laid on the style and beauty tips for women, we this time give more emphasis on men style zone. Stripes are in. On everything - pants, neckwear, shirts! Pin and chalk stripes (suit pant styles) in casual trousers. Even jeans will have pinstripes. Shirts feature colorful stripes and neckwear in suit pinstripes. Pai ring tie and shirt stripes are the coordination challenge for the upcoming season. Fabrics: Superfine wools will be featured along with linen blended with almost every other fiber! You'll be able to find garments in Polyester/Viscose, Polyester/Viscose/Bamboo, Polyester / linen / Viscose, linen / cashmere, and even linen/denim combinations. Lightweight suede will be popular for shirts. The high-tech trend will continue with spill proof, no wrinkle fabrics, and washable suede and leather. Corduroy, normally big in winter/fall will make inroads into spring. Colors: The big spring color will be BLUE in all shades from soft to vivid. Blue will also be big for watch face backgrounds. Other popular spring colors are green (military olive, jungle and celery), brown (unusual for spring), rose, and white. The trend in swimwear will be to solids with cargo pockets in longer lengths, and darker colors. There still will be room in the stores for prints of florals and dragons, and fun colors like orange, red, lemon yellow and even white! A Suits: Suits projects the man's confidence and power in business as well as stylish masculinity during formal situations. There is a choice of either having your suits tailored or getting it off-rack. Tailored suits are individualized and customized specifically to fit at its best for each man's different body frame. All these comes with a higher price attached. So it is important to know the basics in the making of a suit to make it look best on you. Off-rack suits, on the other hand, are readily available and possibly designed with the latest trend in mind. However, it might not be able to fit you as perfectly since it is produced base on the frame of an average man. Mass-produced off-rack suits usually cannot match in quality against individualized tailored suits. As such, off-rack suits are usually not priced as highly compared to a tailored suit. A

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There are a few types of suit jackets available: Single-breasted

These are the basic style of most suits. The front buttons on the suits are in a single straight row. There is a choice of two or three buttons for single breasted mens suits. Double-breasted The suit jacket has one its front overlap the other with two sets of buttons. This is often seen as a more formal suit worn by older men. Sport jackets and Blazers These jackets are more for a "dress casual" look. They can be worn with jeans or casual pants. Usually sport jackets are made of Herringbone or worsted Tweed fabrics which have more informal fabrics and patterns. Blazers are derived from sport jackets and have a more informal cut and design than suit jackets. Traditionally, most blazers are navy blue singlebreasted jackets. Having good knowledge on the basics in the makings of a suit will help you in making better choice of your purchase for both tailored and off-rack suits. Ties Lots of men are interested in knowing how to tie a tie. Learning the right way to tie it and finishing the knot properly lays the groundwork before having neckties look good against the dress shirt or suit. Besides the usual neckties, men also have the choice of wearing a bowtie. This is the traditional neckwear for men where during current era is seldom seen. It is important knowing how to carry oneself with a bowtie and confidence is the key to looking good in it in the first place.

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WORKING WITH RSWM


The RSWM (RSWM) is an equal opportunity employer making no distinctions whatsoever. With production units and offices spread all across India, we provide a wide choice of work locations and opportunities for those with a willingness to commit and contribute to the Company's growth and development. Workers in all our plants enjoy a host of facilities and benefits... including housing, Medicare, co-operative stores, banking, loans, children's education, sports and recreation. The Company has various mechanisms and programmes to discover and tap the potential capabilities of employees including regular workshops and learning stints abroad. The Company recognises and understands that a well-trained and knowledgeable employee is sound business practice and beneficial for both. So if you have the inclination to learn and grow within a company that has a significant global presence, The RSWM has a place for you. To find out more about employment opportunities in RSWM, please click on the link below.

CURRENT OPENINGS
We are a professionally managed, progressive and growth oriented Company with business interests in Grey Yarn, Dyed Yarn, Mlange Yarn, Synthetic and Blended fabric and the Apparels. RSWM today has an installed capacity of 2,42,000 spindles with yarn capacity of 73,000 MT per annum and a weaving capacity of dedicated 69 looms, having state-of-the-art technology, manufacturing products of international Quality, employing over 11000 people, having a turnover of Rs. 1000 crores. We are committed to treating our employees with value for human dignity, integrity, openness and fairness. RSWMs integrated units are, located at Banswara, Gulabpura, Mandpam, Rishabhdev, Bhilwara, Ringas, Mordi and Bangalore. RSWM exports a complete range of yarn and fabric to over 60 countries across Europe, South Africa, Australia, Korea, Belgium, Singapore, Italy, Egypt and Gulf. RSWM manufactures Grey Yarn in Polyester / Cotton and other CottonBlended Yarn Cotton Blends like Acrylic, Viscose and Viloft -oriented yarn, 100% cotton mlange and cotton blended mlange and dyed yarn. There is no openings at present.

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CORPORATE SOCIAL RESPONSIBILITY


The LNJ Bhilwara Group is fully committed towards the development of communities across India and the world. It has provided support, both financial and through voluntary activities, in various areas such as educational, cultural, social and religious activities, medical-aid and relief work. The Group has consistently sought to provide employment opportunities to the communities adjoining its facilities. We have also focused our efforts towards uplifting the weaker sections of the society. Over the years, the Group has extended financial and other support to various philanthropic organizations, like the Lions Club, Rotary Club, among others. Recently, the LNJ Bhilwara Group donated over Rs. one crore to empower and realize key projects. Some of these projects are: Protection of the banks of the River Parvati at village Manikaran, Himachal Pradesh Re-construction of the Vivekanand Vidya Mandir Middle School building at Limbi, Gujarat Rehabilitation of Shri Saraswati Shishu Mandir at Adipur, Kutch Setting up a blood bank in the first private hospital at Bhilwara (Rajasthan).

The Group is sensitive to its responsibilities towards varied communities across society. This is evident in the several meaningful projects undertaken by the group, each of which embody the Group's heartfelt concerns: Education The Group has setup schools near its manufacturing facilities, each of which have become instrumental in social development. These schools not only cater to children from the Group but also to those from the surrounding communities. Annual contributions to these schools ensure that the quality of education is sustained. We have also provided free education with boarding and lodging facilities to two children whose fathers laid down their lives for the nation in the Kargil War. Health and Hygiene The Group is deeply concerned about the health of the community. Every manufacturing facility has a dispensary, manned by qualified medical personnel, for the immediate treatment of all employees, their families and the local populace. The Group also dispenses free medicines to the communities. We have also reached out to the deprived by donating spectacles at a Medical Camp organized at Kasrawad by the State Government of Madhya Pradesh.

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Environmental Development The Group is conscious of its responsibility towards creating and maintaining a safe, clean and green environment. In this regard, we have taken a special interest towards maintaining the ecological equilibrium by being involved in the preservation of medicinal plants and wildlife. The manufacturing facility at Maral Sarovar has been accredited by the Madhya Pradesh Pollution Control Board for being the best organization in environment protection and pollution prevention in the State of Madhya Pradesh Occupational Health and Safety The Group takes utmost care in ensuring a safe and comfortable work environment in all its offices, units and facilities. This is further bolstered by health and safety management initiatives for all employees. These measures have been evaluated and certified by various independent agencies like Intertake Testing Services, Price Waterhouse Coopers and the Loss Prevention Association of India. The manufacturing facility at Maral Sarovar, Madhya Pradesh has won the Silver Award in the Textiles Sector instituted by an international NGO, Greentech Foundation, for achievements in the field of industrial health and safety. Drinking Water / Drought Relief To help overcome the shortage of drinking water, the LNJ Bhilwara Group has installed hand pumps and water lines in the villages that are in proximity to its offices and facilities. The Group has also contributed to Drought Relief Funds organized by the Government to bring about much-needed relief to drought-affected populations.

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ENVIRONMENTAL POLICY
At every step of the way, we are extremely conscious of our commitment to the environment. Therefore, we have skewed our processes to ensure that at virtually every step of the manufacturing process, we employ eco-friendly practices. Effluent treatment is accorded highest priority using state-of-the-art technology. We have finetuned our processes to ensure that there complete recycling of water used in the fabric dyeing and finishing unit. Bulk of this water is used again in the process house, while the balance is used for horticultural purposes around the plant. We have also nurtured a horticulture department within our premises whose skilled staff ensures that our manufacturing plants are surrounded by greenery. We are proud to state that over seven thousand trees are planted every year in the factory campus, the school and nearby areas. This sustained greening effort has yielded excellent fruit what was previously barren land is today swathed with lush green foliage Bhilwaras commitment to the environment can be gauged from the fact that we seek not only to meet the legal norms, but in several cases, we actually exceed them. For instance, the power plants chimney - its height is far beyond the limit stipulated by the government norms. Because we care and care enough to reiterate that nothing is more important than the maintaining a pollution-free environment.

ISO 14001 Right from its inception, RSWM is committed towards meeting its social obligation and has been maintaining an image of it being a socially responsible corporate entity. With the aim to demonstrate its commitment to the customers, regulatory bodies & other stakeholders, the company has started implementing ISO 14001 - Environmental Management System standard. For the implementation of this standard, the company has identified the significant environmental aspects related to its activities and have made plans to reduce the impact of such aspects on the environment. Presently RSWM ready for certification audit for ISO 14001: 2004. Such measures will not only result in contribution to the need for clean air & water, proper disposal of the wastes, but will also result in improved efficiency and cost savings to the organization through conservation of energy & materials. This will also help to company to remain prepared to deal with any eventualities arising out of environmental emergencies or incidents related to its activities. The compliance to applicable legislation & regulatory requirements on an ongoing basis comes as an additional benefit.

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MANDPAM
Established in 1993, The Mandpam Unit employs state of art machinery to produce top quality premium melange yarn, fibre dyed yarn and package dyed yarn. The Mandpam unit specialises in Fashion Oriented Yarns and produces 100% cotton melange (a blend of two or more different colours of dyed fibre plus grey fibre for spinning) yarns. The unit has four cotton fibre-dyeing machines with an output of 2500 Mt/annum and three cotton yarn-dyeing machines with an output of 1350 MT/annum. With the recent expansion to its capacity and facilities, the unit will greatly enhance the Company's presence in knitted garments and related products. Products The Mandpam Unit manufactures the following product range: Quality Equipped with the latest Quality Control Equipment, the Mandpam Unit has been awarded the ISO 9001 certification, with the objective of ensuring that customers get the best quality. Infrastructure This Unit is located just 15 kms. from Bhilwara on the Bhilwara-Chittorgarh highway, Rajasthan. Some technical information and capabilities of the plant are given below: Production Capacity Size of the unit 120000 sq. meters (Total Land Area) Manpower employed -Skilled - 900 nos,Semi Skilled - 75 nos No. of spindles - 29424 Yarn - 8450 MT / Annum Melange Yarn Fibre-Dyed Yarn Yarn-Dyed Yarn

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GULABPURA
Established in 1973, the Gulabpura unit was among the first units to be set up by The Rajasthan Spinning and Weaving Mills Ltd. The Gulabpura unit is the manufacturing base for the highly popular and well-known Mayur Suitings brand - a market leader right across the country. It is the first textile unit in India to be awarded ISO 9002. It is also IS/ISO 9001:2000 certified. It has the exclusive rights to technology that goes into the production of Flame Retardant Fabric. The plant produces Dyed yarns and fabric in blends of Polyester, Viscose, Acrylic, Lycra, Wool, Polyamide, Flex and Modal. It is one of the most versatile plants manufacturing Yarn and Fabrics and a diversified product mix. The Gulabpura unit also specialises in integrated Fabric that uses yarns from man-made fibres and the exclusive rights for spinning Tencel Yarn in India. 1985 the Gulabpura Unit started exporting Polyester-Viscose Yarn to Europe. Today 35% of its Yarn output is exported and expected to rise to about 50% in the near future. Quality The Gulabpura Unit is the first textile unit in India to be awarded ISO 9002 certification. It is also IS/ISO 9001:2000 certified Infrastructure The unit located 70 kms. from Ajmer(Rajasthan) is spread over 165 acres. Over 2,500 engineers, technicians and other skilled employees staff the unit. Some technical information and capabilities of the plant are given below: Production Capacity Size of the unit - 628203 sq. meters (Total Land Area) Manpower employed Skilled - 2914 nos Semi Skilled - 265 nos No. of spindles - 63296 Yarn - 15500 MT No. of Looms - 69 looms Fabric 10 Million Meters / Annum

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CODE OF CONDUCT FOR BOARD & SENIOR MANAGEMENT


RAJASTHAN SPINNING & WEAVING MILLS LIMITED ("RSWM") is committed to maintain sound standards of Business Conduct and Corporate Governance. The Board of Directors (the "Board") and the senior management of RSWM undertake to abide by following Code of Conduct adopted by the Board and affirm compliance with this Code on an Annual basis by acknowledging the same as provided in the end. The Code is named as Code of Conduct for The Board of Directors and Senior Management and is framed in terms of Clause 49 of the Listing Agreement with the Stock Exchanges. APPLICABILITY The Code is applicable to all the members of The Board of Directors and senior management of the Company. Senior Management shall mean personnel of the Company who are members of its core management team excluding Board of Directors. THE CODE Conflicts of Interest: The Directors and senior management should be scrupulous in avoiding 'conflicts of interest' with the Company. In case there is likely to be a conflict of interest, in the case of a senior management personnel, he/she should make full disclosure of all facts and circumstances thereof to the Jt. Managing Director and a prior written approval should be obtained. In case there is likely to be a conflict of interest in the case of Managing Director/Jt. Managing Director, he should make full disclosure of all facts and circumstances to the Chairman of the Board. The Chairman and any Director of the Board in like circumstances should make full disclosures to the Board. Honest and Ethical Conduct: The Directors and senior management shall act in accordance with the highest standards of personal and professional integrity, honesty and ethical conduct and use their powers of office, in good faith and in the best interests of the Company as a whole. Confidentiality: The Directors and senior management shall maintain the confidentiality of confidential information of the Company or that of any customer, supplier or business associate of the Company to which Company has a duty to maintain confidentiality, except when disclosure is authorized or legally mandated. The Confidential information includes all non-public information (including private, proprietary, and other) that might be of use to competitors or disclosure of which might be harmful to the Company or its associates. The use of confidential information for his/her own advantage or profit is also prohibited.

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Protection and Proper Use of Company's Assets: The Directors and senior management should protect Company's assets and property. Company's assets should be used only for legitimate business purposes. Compliance with Laws, Rules, and Regulations: The Directors and senior management shall endeavour to ensure compliance with all applicable laws, rules, and regulations applicable to the Company. Transactions, directly or indirectly, involving securities of the Company should not be undertaken without complying with Code of Conduct for Prohibition of Insider Trading.

INTERNATIONAL PARTNERS & ASSOCIATES


PARTNERING FOR GLOBAL GROWTH The LNJ Bhilawara Group, in its quest for excellence and growth has partnered with the following international companies : Statkraft Norfund Invest Ltd., Norway RSW International, Canada Setting up a 192 MW Hydroelectric Project at Manali. Power Consultancy Services.

International Finance Corporation, Washington Equity holders in AD Hydro Power Project De Witte Lietaer, Belgium Tencel, UK (now Lenzing, Austria) Hoechst (now Trevira CS), Germany Scribe Inc., USA Enercon (India) a subsidiary of Enercon (Germany) Specialised Automotive Furnishing Fabrics Tencel Yarn Spinning Flame Retardant Yarns & Fabrics IT Enabled Services Setting up Wind Energy Project

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Introduction of M D R O E N T C N U S E H IQ E
A A S O N LY IS F O F

F A C L IN N IA S A E E T T T MN

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MEANING AND DEFINITIONS


Analysing Financial Statements is a process of evaluating the relationship between component parts of a financial statement to obtain a better understanding of a firms position and performance. Metcaff and Titard The Analysing interpretation of the Financial Statements results in the presentation of information that will be aid in decision-making by business mangers, investors and creditors as well as other group who are interested in the financial status and operating results of a business. Kennedy and McMullen Financial Statement Analysis is largely a study of relationship among the various financial factors in a business, as disclosed by a single set of statements and a study of the trends of these factors, as shown in a series of statements. John N. Myer Interpretation of accounts may be defined as the art and science of translating the figures in such a way as to reveal the financial strength and weakness of a business and the causes which have contributed therein. Spicer and Pegler

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TECHNIQUES OF THE FINANCIAL STATEMENT ANALYSIS The analytical tools or techniques of financial statement analysis are used to ascertain or measure the relationship among the financial statement items of a single set of statement along with the change that have taken place in these items in successive year. The following are the more commonly used techniques in the analyzing financial statements. 1. 2. 3. 4. 5. Ratio Analysis Trend Analysis Funds Flow Analysis Common-size statements analysis Other techniques of Analysis

A detailed description of the above-cited techniques is given below 1. Ratio Analysis Alexander wall is said to have been the founder of the ratio analysis. In 1909 he put forth a detailed article on ratio analysis in which he said that analysis could be made easier by establishing a quantitative relationship between the various items contained in financial statement. Ratio Analysis is the primary technique used in judging the condition as portrayed by the financial statements. In certain situations the ratios can be used to study financial growth, development and the existing condition of an enterprise. A ratio is simply one number expressed in terms of another. It is calculated by dividing one number- the base, by the other. A percentage is one kind of ratio in which the base is taken as equaling 100 and the quotient is expressed as per hundred of the base. The analyst and interpreter must draw inferences before arriving at any conclusion regarding the financial position of an enterprise, within the established criteria. Thus, the ratios are not conclusive and final in themselves. It should be remembered that ratios are only guides in the analysis of financial statements, and not conductive ends in themselves. Stressing the importance of ratios, Korn S. Winton has observed If a ratio is to be important, it must not only represent a true relationship, but must also aid the analyst in making his immediate decision.

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The ratio used in financial statement analysis may be classified as under : a) Balance Sheet Ratio b) Profit and Loss Account Ratios c) Combined or Inter-statement Ratios The details of the above are as follows: a) Balance Sheet Ratio - Balance Sheet Ratio are the ratio are the ratios which express the relationship between two items or groups of items appearing in the balance sheet, such as Current Ratios, Acid Test Ratio, Debt-Equity Ratios etc. b) Profit and Loss Account Ratios These are ratios by which a relationship is established between two items or groups of item appearing in the Profit and Loss Account, such as profit margin, inventory ratio, operating ratio, etc. c) Combined or Inter-statement Ratios The third type of ratios express the relationship of figures between two items or group of items-one appearing in the balance sheet and the other in the Profit and Loss Account, such as net Profit to Net Profit to Net Worth Ratio, Sales to Working Capital Ratio, Return on Share-holders fund Ratio, etc. The other way of classifying the ratio is according to the nature and object of calculating ratio. The classification may be as given below: a) Liquidity Ratios b) Profitability Ratios c) Leverage Ratios d) Activity Ratio A brief description of the above classification is as following: a) Liquidity Ratios- The ratios which measure the working capital position and the enterprises ability to make payment of short-term obligations are called liquidity ratios for example, Current Ratio, Quick Ratio, Inventory to working Capital Ratio, etc. b) Profitability Ratios- These ratios which X-Ray the profit making ability of the enterprise and the managements efficiency in operating the business activities, like Net Profit to Net Worth Ratio, Return on Capital Employed, Operating Profit Ratios, etc. c) Leverage Ratios- These ratio measure the extent to which the enterprise has been financed by own funds or debts such as Debt Equity Ratio, Capital Gearing Ratio, Propriety Ratio, etc. d) Activity Ratio- These are designed to measure whether the enterprises is using resources, skillfully and effectively as Turnover of Fixed Assets, Turnover of Working Capital, etc.

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2. Trend Analysis Trend Analysis depicts the changes in an item is an item or a group of item of financial statement over a period of time. Trend figures are index numbers giving a birds eye-view over a period of time. A normal year is chosen as the base year and the figures of that year are taken equal to a hundred and index Number of the remaining years under study of that particular item are calculated. It is a dynamic and horizontal type of analysis indicating whether the enterprises direction of trend is upward or downward. Based on the past trend a forecast can be made above the future. 3. Fund Flow Analysis Balance sheet reveals the financial position of an enterprise at a given moment of time while the dynamic business operating involves a regular and smooth flow of funds affecting there by in some way or the other the preceding financial position The inflow and outflow of funds constitutes the core of the enterprise and provides a basis for analyzing the financial position the funds flow statement shows the sources and uses from where funds were obtained and the used to which these funds were put-in during a period of time the sources may due to an increase in capital and loan by sale of fixed assets and investments and because of operating profits the uses may be the consequence of a decrease in capital and loans by purchase of fixed assets and investments and on account suffering of operating losses. 4. Common- size statement Analysis The comparative financial statements and the ratios as tools of analysis have one common shortcoming- the analyst cant comprehend the changes that have taken place in relation to total assets in case of balance sheet and net sales in case of profit and loss account. The common-size statement analysis is a technique of analyzing financial statement in which the total of assets or liabilities and net sales with reference to balance sheet and profit and loss account respectively are taken equal to a hundred and the percentage of each items is calculated accordingly. The technique is useful when we wish to compare one company with the other for presentation of the data in the percentage from, eliminates problems relating to differences in organization size. R.D. Kennedy and McMullen observed that, The common-size statement are most valuable to the analyst in studying current financial position and operating result of a business and especially in making comparisons between companies in the same industry and with the industry standards.

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5. Comparative Financial Statements Analysis Comparative Financial Statements refers to various financial statement of an enterprise, which are prepared in such a way so as to provide a relative picture of the various elements embodies in such statements. These statements mainly include two types of analytical statement viz-comparative balance sheets and comparative income statements, which facilitate comparison between two or more similar enterprises in the same industry and two or more periods for the same enterprise. The committee of accounting procedure of the AICPA commented for Comparative Financial Statements the presentation of Comparative Financial Statements in annual and other reports enhances the usefulness of such reports and brings out more clearly the nature and trends of current changes affecting the enterprise. Such presentation emphasizes the fact that statement for a series of periods are far more significant than those for a single period. The comparative statements indicate the (a) absolute date in money value, (b) increase or decrease in absolute data in term of money value, and (c) increase or decrease in absolute data in terms of percentage. 6. Other Techniques for the Analysis There are so many other techniques, besides those enumerated above, applying in analyzing financial statements. The help of several statistical tools in financial statement analysis in sought. These include index numbers, standard deviation, Coefficient of standard deviation, correlation regression, Chi-square, F-Test etc. The use of diagrams and graphs is also common for making financial statement analysis, providing a vived picture of trends and relationships. Sometimes the techniques of break-even analysis and cash flow analysis are also used.

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TYPE OF ANALYSIS
CLASSIFICATION ACCORDING TO MATERIAL USED Internal Analysis External Analysis CLASSIFICATION ACCORDING TO PROCESS OF ANALYSIS Dynamic or Horizontal Analysis Static or Vertical Analysis

PROCESS OF FINANCIAL ANALYSIS


1. Study of Financial Statements 2. Rearrangement of Financial Information 3. Approximation 4. Establishing the Relationship among elements 5. Knowledge of the Trend 6. Deep Study of Trend 7. Conclusions and Advice

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MERITS OF ANALYSIS
MANAGERS OBJECTIVES Efficiency Decision Making Control Valuation LENDERS OBJECTIVES Liquidity Safety Credit Repayment Capacity Earning Capacity INVESTORS OBJECTIVES Managerial Efficiency Earning Capacity or Profitability Safety Market Situation OWNERS OBJECTIVES GOVERNMENTS OBJECTIVES

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LABOURERS OBJECTIVES MISCELLANEOUS PARTIES OBJECTIVES FUNCTIONAL IMPORTANCE Disclosure of Information Decision Making Work Operation Coordination Control Planning Comparative Study Availability of Necessary Information to Related Parties

DEMERITS OF ANALYSIS
ONLY CURRENT YEARS DATA ARE INSUFFICIENT PAST DATA ARE NOT RELIABLE QUICK CHANGES IN PRICE LEVEL RESULTS OF FINANCIAL ANALYSIS AND FACTS

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FINANCIAL RESULTS & POLICIES

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RSWM LIMITED
BALANCE SHEET as on 31st March 2006 & 2007 FOR THE YEAR ENDED PARTICULARS SOURCE OF FOUNDS Share Capital Share Warrants Reserve & Surplus Secured Loans Unsecured Loans Defered Tax Liability (Net) 31.03.2007 60.65 1.88 244.63 872.49 0.05 47.63 1227.33 31.03.2006 60.65 1.88 205.50 444.05 0.14 34.77 746.99 Increase(+) or Decrease(-) Amount 0.00 0.00 39.13 428.44 -0.09 12.86 480.34 In % 0.00 0.00 19.04 96.48 -64.29 36.99 64.30

APPLICATION OF FUNDS Fixed Assets Gross Block Less-: Depreciation Net Block Capital Work in Process Investment Current Assets, Loans & Advances Inventories Sundary Debtors Cash & Bank Balance Other Current Assets Loans & Advance Less-: Current Liabilites & Provisions Current Liabilities Provisions

965.46 449.63 515.83 324.79 46.46 164.97 100.67 16.60 81.30 28.29 391.83 53.63 0.04 53.67 338.16 2.09 1227.33

827.75 424.98 402.77 27.90 26.78 129.22 111.80 4.57 86.58 21.25 353.42 52.86 12.67 65.53 287.89 1.65 746.99

137.71 24.65 113.06 296.89 19.68 35.75 -11.13 12.03 -5.28 7.04 38.41 0.77 -12.63 -11.86 50.27 0.44 480.34

16.64 5.80 28.07 1064.12 73.49 27.67 -9.96 263.24 -6.10 33.13 10.87 1.46 -99.68 -18.10 17.46 26.67 64.30

Net Current Assets Miscellaneous Expenditure

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A. Liquidity Ratio -: Liquidity ratios shows payment capicity of short term liabilities by firm
1. Current Ratio= Current Assets Current Liabilites 391.83 53.67 7.30 Year 2006 353.42 65.53 5.39

Year 2007

Comment-: Current Ratio is very important for each company because this ratio shwowes coverage on liabilites this ratio's standard is 2:1 , but according to company 's nature & policy it can be change. In this chart we watch level of current ratio of different different years. According to my openion level of current ratio is verry high mean it is not good for company, because company is not using fund properly. 2. Quick Ratio= Current Assets-Cl. Stock Current Liabilites 226.86 53.67 4.23 Year 2006 224.20 65.53 3.42

Year 2007

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Comment Qucik Ratio shows fast payment on liabilites, Firm credit rating depond on this ratio. Standard Quick ratio is 1:1 but in the case of this company quick ratio is very high. Financila comment on this ratio is , no proper use of fund.

3. Cash Ratio:-

Cash + Bank + Other Marketable Security Current Liabilites

Year 2007

16.60 53.63 0.31

Year 2006

4.57 52.86 0.09

Comment-: Cash Ratio masereliquidity of all Business. This ratio showes liquidity of firm. This ratio showes emegiet payment capicity of firm.

4. Internal mesasurement ratio:

Quick Asset Avg. Daily Oper. Exp.

Quick Assets:- Current Assets - Cl. Stock Average Daily Operating Exp. :- [(Cost of sales - Depreciation - other non cash item ) / 360] Year 2007 226.86 2.64 86.05 Comment This ratio mesure firm 's payment capicity of daily cash expenses. Capital Structure Ratio:- This type ratio shows firm 's financial techniques and provide information firm's long term liquidity. Capital Structure of Sangam india ltd. As on 31.03.2007 Share Capital Reserve & Surplus Share holders fund / Equity Secured Loans Unsecured Loans Debts 60.65 244.63 305.28 872.49 0.05 872.54 Year 2006 224.20 2.44 91.96

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Debt Equity ratio

Debt Equity 872.54 305.28

Debt Equity ratio

2.86

Coverage Ratio-: This ratio shows firm' payment capicity of fixe liabilty like preference share dividend and interest in loans/debts. Interest coverage ratio EBIT Interest

Preference dividend coverage ratio

EBIT Pr. Share Dividend

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RSWM LIMITED
PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2007 FOR THE YEAR ENDED PARTICULARS INCOME Gross Turnover less-: Excise Duty Net Turnover Other Income Increase / Decrease in Closing Stock Expenditure Raw Material Operators and Other Expenditure Financial Expenditure Profit Before Depreciation & Tax Depreciation And Amortisation Profit Before Tax Tax Expenses Fringe Benefit Tax Current Tax Deffered Tax Profit After Tax Add-:Transfer on Amalgamation Opening Balance of P&L Profit Available for Appropriations Transfer to General Reserve Proposed Dividend on Equit Share Divedend on Preference Share Dividend Tax Balance Carried Forword EPS (In RS.) Basic Diluted 31.03.2007 31.03.2006 Increase(+) or Decrease(-) Amount In %

1064.69 22.69 1042.00 9.88 -6.72 1045.16 590.23 338.16 20.71 949.10 96.06 47.37 48.69 0.80 5.18 9.27 33.44 0.00 75.84 109.28 5.00 6.94 0.00 0.98 96.36 19.04 17.18

994.16 34.56 959.60 7.45 -7.23 959.82 546.18 313.31 18.24 877.73 82.09 43.08 39.01 1.12 2.35 8.46 27.08 0.54 59.14 86.76 3.00 6.94 0.00 0.98 75.84 11.70 11.29

70.53 -11.87 82.40 2.43 0.51 85.34 44.05 24.85 2.47 71.37 13.97 4.29 9.68 -0.32 2.83 0.81 6.36 -0.54 16.70 22.52 2.00 0.00 0.00 0.00 20.52 7.34 5.89

7.09 -34.35 8.59 32.62 -7.05 8.89 8.07 7.93 13.54 8.13 17.02 9.96 24.81 -28.57 120.43 9.57 23.49 -100.00 28.24 25.96 66.67 0.00 0.00 0.00 27.06 62.74 52.17

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RSWM LIMITED FINANCIAL HIGHLIGHTS Increase(+) or Decrease(-)

Particulars

31.03.2007

31.03.2006

Domestic Turnover Exports Turnover Total Turnover

532.10 532.59 1064.69

544.34 450.68 995.02 Increase(+) or Decrease(-)

-12.24 81.91 69.67

In % (In Crores) -2.25 18.17 15.93

Particulars Profit Before Depreciation & Tax Depreciation Profit Before Tax Tax Profit After Tax

31.03.2007 96.06 47.37 48.69 15.25 33.44

31.03.2006 82.09 43.08 39.01 11.93 27.08

In % 13.97 4.29 9.68 3.32 6.36 17.02 9.96 24.81 27.83 23.49

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PERFORMANCE TRENDS Turnover (In CR.)

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Stock Code of the Company BSE NSE 500350 RAJASSPG BSE Month April May June July August September October November December January February March HIGH (Rs.) 106.85 130.40 135.35 146.20 142.60 159.95 135.20 135.70 141.35 139.80 130.00 135.00 LOW (Rs.) 80.75 96.60 111.05 117.00 123.00 112.00 110.10 123.50 120.00 115.25 106.25 115.35 NSE HIGH (Rs.) 107.20 130.00 135.35 146.20 142.55 156.65 135.50 137.95 140.90 140.00 129.90 135.50

LOW (Rs.) 80.60 96.50 110.25 118.00 119.30 114.00 108.00 116.00 119.10 115.50 108.25 117.00

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ACCOUNTING POLICIES AND NOTES ON ACCOUNTS


ACCOUNTING POLICIES 1. GENERAL The financial statements are prepared on historical cost convention and on the accounting principles of the going concern in accordance with Generally Accounting Principles (GAAP), comprising of the mandatory accounting standards, Guidance Notes, etc. issued by the Institute of Chartered Accountants of India and Provision of the Company Act, 1956, on accrual basis , as adopted consistently by the Company. 2. REVENUE RECOGNITION a) Sales revenue is recognized when property in the goods with all significant risk and rewards as well as effective control of goods usually associated with ownership are transferred to the buyer, at a price and includes excise duty and exchange fluctuations in the case of export. b) Promotional Benefits, Export Incentives and Export Growth Incentives are accounted for on accrual basis. c) Claims and refunds due from Government authorities and parties though receivable/ refundable are not recognized in the accounts, if the amount thereof is not ascertainable. These are accounted for as and when ascertained or admitted by the concerned authorities / parties in favour of the Company. d) Claims lodged with insurance companies are recognized as income on acceptance by the Insurance Company. The Excess/Shortfall of claims passed is adjusted in the year of receipt. 3. INVENTORY VALUATION a) Inventories are valued at historical cost and net realizable value whichever is lower. Historical cost is determined on FIFO/Weighted Average basis on relevant categories of Inventories and net realizable value, after providing for obsolete, slow moving and defective Inventories, wherever necessary on a consistent basis. b) Cost of raw materials includes duties net of Cenvat Credit available. Finished goods include excise duty thereon.

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4. INVESTMENTS Long Term Investments are stated at cost. In case of diminution in value other than temporary, the carrying amount is reduced to recognise the decline. Current Investments are valued at cost or fair value whichever is lower. 5. FIXED & INTANGIABLE ASSTES AND CAPITAL WORK IN PROGRESS a) Cost of Fixed Assets comprises of its purchases price including import duties and other non refundable taxes or levies, expenditure incurred in the course of construction or acquisition, Start-up Commissioning and test runs & experimental production and other attributable costs for brining the assets to its working conditions for the purpose of use for the business. b) Borrowings cost directly attributable and / or funds borrowed generally and used for the purpose of acquisition / construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized, at its capitalisation rate to expenditure on that assets, for the period, until all activities necessary to prepare qualifying assets for its intended use are complete. c) Assets retired from active use and held for disposal are stated at the lower of their net book value and / or realizable value and are shown separately. d) Expenditure incurred on acquisition of Intangible Item has been accounted for as Intangible Assets, being identifiable non-monetary assets without physical substance, at the acquisition cost, in accordance with AS 26 on Intangible Assets. 6. DEPRECIATION AND AMORTISATION Depreciation on fixed assets and amortisation on Intangible Assets has been provided as follows:a) On fixed assets existing on 30.09.1987, on straight Line Method at the rates a) Specified in circular No.1/86 of 21st May, 1986 issued by the Department of Company Affairs. b) On plant and Machinery in the Power Generation Division on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956 considering the same as Continuous Process Plant w.e.f. 1st april,2005. c) On other fixed assets acquired and put to use after 1.10.87 on straight line method at the revised rates and in the manner specified in Schedule XIV to the Companies Act, 1956 as amended vide notification No.GSR-756 (E) dated 16th December, 1993 issued by the Department of Company Affairs.

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d) The Foreign exchange fluctuation up to 31 st March, 2003, on the foreign currency loans against acquisition of fixed assets were capitalized and depreciated over the residual life of the respective asset. e) Leased assets are depreciated over the operating period of lease. f) Intangible Assets are amortised over their estimated / contracted useful life on the straight-line basis, commencing from the date, the asset is available for use. 7. IMPAIRMENT OF FIXED ASSETS Factors giving rise to any indication of Impairment of the carrying amounts of the Companys Assets are appraised at each Balance Sheet date to determine and provide / reverse an impairment loss following Accounting Standard (AS) 28 Impairment of Assets. 8. FOREIGN EXCHANGE a) Foreign exchange transactions relating to Imports and Exports are recognized at the applicable forward cover rate or exchange rates prevailing on the date of transactions / negotiation of documents. b) Borrowings in Foreign Currency have been recorded initially at the prevailing exchange rate on date of availment. Gain / Loss on renewal / Payment are accounted for in the Profit and Loss Account for the period. Premium or discounts arising on amount covered under Forward. Contracts / Fixed Rate Contracts are amortised as expenses or income over the life of such contracts. The exchange gain / loss on open exposure are recognized at the exchange rates prevailing at the closer of the year. c) Exchange gain or loss on derivatives, not intended for trading or speculation, is recognized separately and amortized as expense or income over the life of such contracts. The exchange difference on such contracts including cancellations / renewals is recognized in the reporting period. 9. MISCELLANEOUS EXPENDITURE a) Preliminary, Share and Debenture Issue Expenses are amortised equally over a period of five years or earlier on annual appraisal / impairment / redemption. b) Premium on prepayment / resetting of interest on term loans has been considered as Deferred Revenue Expenditure after adjusting the amounts relatable to current financial year and is carried forward to be amortised over remaining period of respective term loans. c) Other deferred revenue expenses are amortised over a period of five years.

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10. REPLENISHMENT Indigenous raw materials had to be used on occasions, for export, to be subsequently replenished under Duty Free Entitlement Schemes of the Government of India. Therefore, the cost of such indigenous materials has been accounted for at its estimated import/duty free prices. 11. RETIREMENT BENEFITS Contribution to Provident and Superannuation fund are accounted on actual liabilities basis. Provision / Contribution to Gratuity fund and Leave Encashment benefit fund, on retirement are made on actuarial valuation basis. 12. TAXES ON INCOME a) Taxes on Income are computed using tax deferral Assets or Liability method where taxes accrue in the same period, the respective revenues and expenses arises. The differences that result between the profit offered for income tax and the profit as per financial statements are identified and Deferred Tax Liability is recognized for timing difference, that originate in one accounting period and reverse in another, based on the tax effect of the prevailing enacted regulation in force. b) Deferred Tax Assets are recognized subject to prudence, only if there is virtual certainty that they will be realized and are subject to appropriate reviews at each balance sheet date. For the purpose of measurement of Deferred Tax Liability or Assets, the applicable tax rates and enacted regulations expected to apply in the year in which the temporary differences are expected to be recovered or settled are applied and due consideration of the relief available under the provisions of Chapter VI A of the Income Tax Act, are appropriately considered. c) Existing Minimum Alternate Tax credits available shall be adjusted against the Deferred Tax Liability / Current tax payable as per provisions of the Income Tax Act.

13. PROVISIONS AND CONTINGENT LIABILITIES a) Provisions are made when the present obligation of a past event gives rise to a probable outflow, embodying economic benefits on settlement, and the amount of obligation can reliably estimated. b) Contingent Liabilities are disclosed after a careful evaluation of facts and legal aspects of the matter involved. c) Provisions and Contingent Liabilities are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

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COMPARATIVE ANALYSIS

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COMPARATIVE ANALYSIS Year 2007 Mayur 1042.00 BSL 174.00 Raymond 1284.00 (in Cr.) Sangam 552.00

Net Turnover

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COMPARATIVE ANALYSIS Year 2007 Mayur 34.00 BSL 2.00 Raymond 201.00 (in Cr.) Sangam 27.00

Profit After Tax

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COMPARATIVE ANALYSIS Year 2007 Mayur 516.00 BSL 62.00 Raymond 676.00 (in Cr.) Sangam 366.00

Fixed Assets

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SWOT ANALYSIS

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SWOT ANALYSIS
STRENGTH RSWM has also built Mayur Suitings into one of India's top textile brands. Sound Financial position with adequate profits and capital assets base Company has installed over 2,42,000 spindles and over to weaving machines RSWM exports a complete range of yarn and fabric to over 60 countries Group has set up India's most modern processing plant

WEAKNESSES Low Sales as compared to market potential. High Cost & Price OPPORTUNITIES The textile policy of 2000 aims at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25 billion. The industry expects investment of Rs.1,40,000 crore in this sector in the post-MFA phase. THREATS There are many dealers of law profile may cause a loss of product performance to grow prosper. Competitors are publicizing rapidly may be another threat to the company. Price Fluctuations and price war is general phenomena in the textile industry.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY Research as a scientific and information on a specific topic systematic search for appropriate

While deciding about the method of data collection to be used for the study, the researcher should keep in mind two type of data viz., primary and secondary. The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. The secondary data, on the other hand, are those which have already been passed through the statistical process. Secondary data means data that are already available i.e. they refer to the data which have already been collected and analyzed by someone else. Secondary data may either be published data or unpublished data. Usually published data are available in: (a) Various publication of the central, state are local governments; (b) Various publication of foreign governments or of international bodies and their subsidiary Organisations :(c) Technical and trade journals; (d) Books, magazines and newspapers; (e) Reports and publication of various associations connected with business and industry, banks, stock exchange, etc. ; (f) Reports prepared by research scholars, Universities, economists, etc. in different field; (g) Public records and statistics, historical documents, and other sources of published information. The sources of unpublished data are many; they may be found in diaries, letters, unpublished biographies and autobiographies and also may be available with scholars and research workers, trade associations, labour bureaus and other public/private individuals and organisation Type of research a) Research design b) Data type d)Method of data collection e) Research instrument : : : : Descriptive research Secondary data Public records and statistics, historical documents, and other sources of published information. Structured Schedule

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FINDINGS

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FINDINGS

H ighlights of the co panys financial perform ce during 2006-07 m an Revenue from Operations Increase by 8.59 % to Rs. 1,042 crore for 2006-07 from 960 crore in 2005-06 Operating Profit (PBIDT) Increase by 17.02 % to Rs. 96 crore for 2006-07 from 82 crore in 2005-06 Profit after Tax (PAT) Increase by 23.49 % to Rs. 33 crore for 2006-07 from 27 crore in 2005-06 Reserve & Surplus Increase by 19.04 % to Rs. 244 crore for 2006-07 from 205 crore in 2005-06 Unsecured Loan Decrease by 64.29% to Rs. 0.05 crore for 2006-07 from 0.14 crore in 2005-06

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QUESTIONNAIRE DESIGN

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QUESTIONNAIRE FOR STAFF MEMBER 1. Name of the Person _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2. Designation 3. Department _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ 1. What do you mean by financial statement? (A) Balance Sheet (B) Profit & Loss A/c (C) Trading A/c (D) All above What is the technique of Financial Statement Analysis? (A) Ratio Analysis (B) Trend Analysis (C) Funds Flow Analysis (D) All above What is the nature of financial statement? (A) Recorded Facts (B) Conventions (C) Personal Judgments (D) All above What are the Limitations of financial statement Analysis? _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ Which techniques company use for Financial Statement Analysis? (A) Modern Technique (B) Traditional Technique (C) Both (D) Any Other What are managerial uses of Fund Flow Statements? _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ What is the major source of fund? (A) Share Capital (B) Reserve & Surplus (C) Long Term Loan (D) Short Term Loan What is the major use of fund? (A) Fixed Assets (C) Investment (B) Current Assets (D) Any Other

2.

3.

4.

5.

6.

7.

8.

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9.

Which ratios are most important for Financial Statement Analysis? (A) Liquidity Ratios (B) Profitability Ratios (C) Investment analysis Ratio (D) Activity/Efficiency Ratio The Current Ratio of Company is _ _ _ _ and liquid ratio is _ _ _ _ Comment on the position of the Company. _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ How much your per month Turnover (Average)? (A) Below 30 Cr. (B) 30 Cr. 50 Cr. (C) 50 Cr. 80 Cr. (D) More Then 80 Cr. On which term are you selling Products? (A) Cash (B) Credit (C) Both If Credit than please specify how much time? (A) Less than 15 Days (B) 15 Days 30 Days (C) 30 Days 45 Days (D) More Then 45 Days How will you treat Foreign Currency cash flows while preparing cash flow statement? _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ What is the importance of key factor in an organization for decision-making? _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _ _ _ _ __ _ _ _ _ _ _ __ _ _ _ _

10.

11.

12.

13.

14.

15.

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SUGGESTIONS

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SUGGESTIONS

1. Company should make efforts to increase further satisfaction of customers by improving the quality and price for better profit and more segmented growth and market capture which may strength it more financially 2. RSWM Ltd. Should review its financial policies and care must be undertaken to keep an eye on systematic carrying out of all the expenditures so that they may not lead to over financial burden of the company. 3. Further, All Ratios like working capital ratio, debt equity ratio, are to be maintained properly so that all the current and fixed liabilities are to be met out satisfactorily 4. The executives need to be equipped with current technologies yet care must be taken to incur cost only on the specific technologies, which may yield profitable improvement. 5. Training and fresher courses to be inducted for the employees to improve the skills. 6. Need to undergo intensive research and development with constant enhancement of quality Suiting. 7. Better Communication and liaisons need to be maintained with the banking organization and associated financial institutions for future references of sanctioning in the matter of expansion of capital or diversification.

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BIBLIOGRAPHY

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BIBLIOGRAPHY
Following Sources have been referred in the completion of Summer Training BOOKS: 1. Financial Management, Khan & Jain 2. Indian Corporate Sector, Agarwal N.P. 3. Research Methodology, Kothari C.R. WEBSITES: www.rajasthanspg.com 1. www.lnjbhilwara.com 2. www.moneycontrol.com 3. www.google.com NEWSPAPER: 1. Economic Times 2. Times of India 3. The Hindu MAGAZINES: 1. India Today 2. Business World 3. Annual Report of RSWM Ltd.

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