HIMATSINGKA SEIDE LTD (HSL

)

DEPARTMENT OF MANAGEMENT STUDIES-BEC (BAGALKOT) Page 1





















HIMATSINGKA SEIDE LTD (HSL)

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ACKNOWLEDGEMENT
I am the student of “BASAVESHWARA ENGINEERING COLLEGE (AUTONOMOUS),
DEPARTMENT OF MANAGEMENT STUDEIS, MBA III SEM” very grateful to all the
people who have provide their precious time and advice making this project successful.
Firstly, I am very grateful to “HIMATSINGKA SEIDE LTD” for providing me an
opportunity to conduct this project in their organization.
I am thankful to Mr. GURUSWAMY.K.C for providing me an opportunity to carry my
project in their organization.
I am heartily thankful to my organizational guide Mr. MAHESH.N & all other staff
members for their valuable guidance and for supporting me by sharing their experience, as well
for guiding me in completing In- plant training successfully.
I am heartily thankful to my internal guide Prof. SUMANGALA BADAMI and all faculty
members of my institution for their valuable guidance in completing in plant training
successfully.









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DECLARATION
I Ms. SAVITA. M. MALLI bearing the USN No.2BA13MBA37 under signed here by declare
the this project report is genuine and bonafied work prepared by me under the guidance of Prof.
SUMANGALA BADAMI of PG studies BVVS Bagalkot.
And the project report submitted to BVVS engineering college Bagalkot in partial fulfillment of
the requirement for award of degree MBA during the academic year 2013-2014.








Place: SAVITA.M.MALLI
Bagalkot





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LIST OF CONTENTS
Sl.No Contents Of Project Page No
1 Introduction
2 Objectives of studying the organization
3 Overview of the Organization
 Brief History
 Nature of the Organization
 Business volume
 Vision, Mission, Objectives
 No of Employees
 Product Lines

4 Organizational Structure
 Main Office
 Comments on the Organizational Structure

5 Structure of the Finance Department
 No Of Employees working in the finance Department
 Finance and Accounting Operations

6 Functions of the Finance Department
 Accounting System of the Organization
 Finance System of the organization
 Use of electronic data in decision making
 Mobilization of funds
 Generation of funds
 Source of funds
 Allocation of funds

7 Financial Analysis (Ratio Analysis, horizontal and vertical analysis of
the organization for the last five years)

8 Future prospects of the organization
9 Short falls /Weakness of the Finance Department
 Critical analysis of the Management patterns of the organization
with reference to financial operation, weak areas that need to be
improved.

10 Conclusion
11 Reference and Source used.
12 Bibliography
13 Annexes

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1) INTRUDUCTION OF THE COMPANY

HIMATSINGKA SEIDE LTD (HSL) was incorporated in the year 1985. It is the largest
manufacturer and exporter of natural silk fabrics and spun silk and blended yarns. The spinning
and the weaving mill is set up under 100% export oriented scheme at KIADB industrial area,
Doddaballapur taluk, Bangalore district. HSL commenced the commercial production during
December 1987.Himatsingka Filati, the newly opened division came up in the year 1998 for
spinning of 100% spun silk yarns along with the production of the silk blends mostly using wool,
viscose and linen. More than its size, it is known for its quality and creativity. HSL is exporting
the premium quality silk fabric and yarns for furnishing and apparel. HSL specializes in the yarn
dyed fabrics. In short span of time HSL has emerged as the largest exporter of silk fabrics and
spun silk yarns from India. HSL‟s products are considered among the best in the world and fetch
a premium price.

Distributors are spread all over the world, based mainly in USA and EUROPE. To deal with the
customers in USA, the company has a design Studio. The company's in-house design studio,
which is equipped with the latest CAD-CAM computer systems, is well integrated with the
electronic jacquards in the weaving division. The perfect color matching systems also helps to
get the exact colors as specified by the customers. Apart from being a composite plant, HSL'S
operation is considered to be among the most modern and technologically advanced in the world.
The plant comprises of 78 Rapier Shuttle less Weaving Machinery, out of which 46 are equipped
with electronic Jacquards.
It‟s pre-weaving and post-weaving operations are also unique in many ways. HSL has been
awarded ISO 9001 certification from RWTUV, Germany for design and manufacturer of natural
silk fabrics and yarns. From the Himatsingka history came the Himatsingka confidence. To
diversify into the manufacture of silk yarns, to become one of the largest integrated silk mills in
the world. Himatsingka Seide - Innovation, Dedication and commitment of quality.
Mr.Ajoy Himatsingka and Mr.Dinesh Himatsingka are the main promoters of the
Company.

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Starting out with an installed capacity of 0.75 million sq.mtrs and a sales turnover of Rs. 4.42
crore for the year ended March 1989, HSL has notched up a sales of Rs. 125 crore in the
previous year ending March 31, 2003 with an installed capacity of 2.28 million meters. The
Company‟s silk yarns and fabrics are exported across Germany, France, England, Italy, South
America, Australia and USA. It is hailed to be the market leader and a pioneer in establishing
Indian silk products in the international market with their high quality fabrics made on modern
machinery.
HSL has recently diversified into the production of premium velvets (pile) fabrics with a view to
widen the product offering to the existing customers. Today they operate one of the largest
integrated mills in the world. Their mill is ISO 9001 certified. As a result, over the previous five
years HSL‟s revenue has grown at a Compounded Annual growth rate (“CAGR”) of 22% while
the Company has consistently maintained operating margins of almost 50% which is quite extra
ordinary for any manufacturing company.
Internationally Competitive Company over a Decade Exporting high quality silk fabric (mainly
for furnishing) for over 15 years now.

2).Objectives of the organization
1) To have practical exposure to organizational function as compared to theoretical
concepts.
2) To know the organizational structure of the organization.
3) To analyses the financial performance of the organization.
4) To study the finance departments of the organization in detail.
3).Overview of the organization
Himatsingka Seide Limited engages in manufacture, retail, and distribution of fabric and yarn
products in India, North America, Europe, and internationally. The company manufactures bed
ensembles, including sheet sets, pillowcases, duvets, comforters, decorative pillows, bedskrits,
shams, and dust ruffles, as well as a range of quilted products; fabrics for drapery and upholstery
applications; and bath products. It also offers spun silk yarns; silk yarns blended with wool, and
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linen; and plain and fancy yarns for weaving, and flat bed and circular knitting activities. In
addition, the company is involved in the retail and distribution of home textile products, which
primarily include sheets, pillowcases, duvet covers, bedskirts, pillow shams, decorative pillows,
comforters, coverlets, quilts, and home accessories, as well as blankets, throws, towels,
bathrobes, turndown mats, and bath rugs primarily under the Calvin Klein Home, Barbara Barry,
and Bellora Hospitality brands through specialty home stores, department stores, warehouse
clubs, and catalogues in North America. Further, Himatsingka Seide Limited retails fine bedding
products, and bath and allied home accessories through approximately 35 Bellora stores; multi-
brand outlets; and departmental stores primarily in Italy. Additionally, it provides drapery and
upholstery fabrics through approximately 14 ATMOSPHERE stores in India, the United Arab
Emirates, and Singapore. Himatsingka Seide Limited was founded in 1985 and is headquartered
in Bengaluru, India.
3.1).History of the organization
Himatsingka Seide Ltd (HSL) established in 1985 is in the business of manufacturing natural silk
and silk blended fabrics, silk woven yarn, etc. Its product range includes decorative fabrics for
home furnishings mainly bed linen, bridal wear, fashion fabrics for men and women wear etc.
Company profile
Name of company : Himatsingka Seide Ltd (HSL)
Type : Public Company
Address (Office & Works) : Himatsingka Seide Ltd (HSL)
23/A, K.I.A.D.B. Industrial Area, Veerapura Village,
DODDABALLAPURA-561203. BANBALORE.
Phone: 080-27622353/27623327,/2723554
Web Url: http://www.himatsingka.com

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Headquarters : 10/24, KumaraKrupa Road,
High Grounds
City: Bangalore
State: Karnataka
Pincode: 560001
Email ID: investors@himatsingka.com
Web Url: http://www.himatsingka.com
Year of Establishment : 1985
Chairman : Dilip J Thakkar
Founders : Ajay Kumar Himatsingka and Dinesh Himatsingka
Status of Ownership : Partnership
Indirect Exports : North America, Europe
Turn Over : 1400 crors
No of Employees : 142 Staff 422 workmen

3.2). Nature of the Organization

The state-of -art plant is located at the Doddaballapur Industrial Areas in the state of Karnataka
and is about 35kms from Bangalore. It is well connected with road and rail. The whole
production unit is humidity and temperature controlled. HSL‟s composite plant is considered to
be among the most modern and technologically advanced in the world, comprising of 81 Rapier
Shuttle less Weaving Machines, out of which 48 are equipped with electronic Jacquards.


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3.3). Business volume
VISION
“We aim to make Himatsingka Seide a design – led, fully integrated, global home textiles
company.”
„‟Aim to make Himatsingka seide a design led, fully integrated global home textile company‟‟.

MISSON
“We are on our way to becoming a global “home textile company” with green field
manufacturing projects in India and frontend acquisitions overseas.”
“We focus on product differentiation, quality assurance, business ethics, financial prudence and
people based value systems. We succeeded. We now have the required critical mass. We are
determined to leverage all our expertise and aim to become an integrated global leader in the
home textile space.”
 Expanding product profile
 By increasing market growth
 By gaining investor confidence

3.4).Numbers of employees
142 Staff 422 workmen

3.5).Products /services
Products Line
Himatsingka Filati the spinning division offers yarns of both the traditional variety and
interesting blends. Himatsingka Seide the weaving division offers three fabrics lines namely
decorative, bridal, fashion.
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Spun Silk / Blended Yarn
Company offers both regular and fancy yarn. Their regular yarns include
classical spun silk of 2/140 NM and 2/60 NM and blends of silk with viscose
and wool. The fancy yarns count up to 30Nm and are offered in spun silk and
various blends with silk. Irregular, slubby and shantung effects can also be spun.
Decorative fabrics
HSL offers fabrics for drapes and upholstery, for home as well as for contract
and hospitality industry. Filament silk, spun silk and blends of silk with
cotton, wool, linen, and viscose are some of the yarns it uses.
Bridal Wear
The bridal wear range includes taffetas, duchess satins, organza, damasks, floral
and jacquards. Its fabric is woven in a variety of textures and shades. USA, UK,
Spain, Italy, Belgium, Australia, and France are some of the countries where it
offers the bridal range of fabrics.
Fashion Wear
It‟s fashion fabric are used in the making of evening wear, men‟s casual jackets, waistcoats,
formal and semi formal women‟s wear. They work with filament and spun silk as well as silk
blended with wool, linen and cotton. Fabric designs range from classic to contemporary.
Weaving Division – Himatsingka Seide
The products that HSL manufactures are 100% Natural Silk/Blended Fabrics used for furnishings
and apparels. HSL specializes in yarn - dyed fabrics and is equipped with the very latest
production lines that are capable of executing small orders in a very short turnaround time. At
present the weaving division has an installed capacity of 2.28 million metres for the production
of natural silk and silk blended fabrics. The current average composite realization per metre is
Rs.880/-The entire operation of winding, doubling, twisting, dyeing, weaving and finishing is
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integrated under one roof. The weaving operations are integrated through the computer network
for the efficient process control with CAD/CAM operations.
The manufacturing process involved in the said divisions represented below:

The workflow of the weaving division can be broadly classified into:
• Grey yarn preparatory and planning
• Weaving preparatory and planning

Yarn Preparatory:
Raw material:
The Company uses various varieties of silk yarns such as filature, dupion, and chenille, which
are mainly imported from China and Brazil. Raw material is obtained in packed bales or boxes.
The issue stores maintains the yarn stock status and the raw material requisition report which
includes the yarn codes, preparatory codes, bales no.
Steeping and tinting:
In this process a tint or color with water is added to the yarn in order to identify different lots.
Antistatic oil is also added which improves the efficiency of yarn in the further processes.
Drying:
This is done to completely remove the excess moisture. The methods used for drying are the
natural drying and the radio frequency drying. The yarn is kept in the drying chamber for 18 to
24hrs at a temperature of 40 degrees centigrade to remove the excess moisture.


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Winding:
The yarns imported are in the hank form so they undergo the winding process in order to put
them into bobbins. The machines used are FADIS and COLLEONI. Over 250000 kms. Of silk
yarn are wound each day for further processing.

Doubling:

The main objective of the doubling process is to make ply yarns like 2ply, 4ply, 6ply etc. the
machines used are FADIS and COLLEONI (for filature yarn) and HAMEL (for dupion yarn),
which serves the purpose of doubling and twisting.

Twisting:
The doubled yarn as well as the winded yarn can be twisted together in order to increase its
strength. The two-for-one twisters do this. The machine used is called the RPR twister from
Italy. The RPR twister provides the primary and the secondary twist. HSL has installed 6 RATTI
twisting machines which though same in efficiency as RPRs, but make less noise.

Steaming:
After the yarn has been twisted it has to be conditioned to balance the twist. The twist setting
machine is called the OBEM. In this the yarn is steamed to set the twists.


Rewinding:
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The next process is the rewinding of the steamed material. The basic objective of this process is
to check and rectify the faults. Finally, conversion of yarn from bobbins to cheese form is done
for dyeing.

Reeling:
The bobbins to hank conversion take place here. This conversion is done to facilitate hank
dyeing.

PROCESSES



Dyeing:
The process of Yarn Dyeing is monitored under carefully controlled conditions on package and
hank dyeing machines. Microprocessors maintain over 30 parameters within specific degrees of
tolerance. Colour Matching Spectrophotometer matches production lots to a customer recipe
index of over 60,000. Dyeing of the yarn can either be done in the hank form or the cheese form.
Generally the warp yarn is dyed in cheese form and the weft yarn is dyes in hank form.


Weaving Preparatory:
Warping:
Then the warping takes place. Sectional warping machines are used for this purpose. The
Beninger warper prepares beams with critical standards required for high speed weaving.

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Weaving:
There are basically two types of looms. Dobby machines, which are used for weaving plain
fabrics or less complicated designs such as checks or strips. The jacquard machines are used to
weave intricate designs in a variety of colors. The machines are all from Sulzer and Dornier.


Finishing:
In the mill the finishing can be classified into:
 The visible finish – which includes lustre, flatness and fullness, softness or
stiffness, pliability and the body of the fabric.
 The invisible finishes – which includes the dimensional stability of the fabric such
as shrinkage, slippage, tensile strength, elongation and the pilling properties.


Radio frequency dryers and a custom synchronized line for fabric finishing
compliments the Process House. The company has sophisticated Sperotto Rimar finishing
machines, which give the final finishing effects to the fabric, weaved.


Inspection:
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All fabrics then go through rigorous inspection to detect any defects. The defects are grouped
into two groups:
 The tafetta group – which allows 4 major defects and 6 minor defects.
 The general group – which allows 3 major defects and 4 minor defects.
The defect chart is provided to identify the faults.


Packing:
Then the final products are carefully packed according to customer specifications and delivery
schedules to be ready for dispatch.












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4).Organization Structure
Organization structure of whole firm



















Chairman
Managing directors

Production
department

Marketing
department

Administration
department

Finance
department

Engineering
department

Deputy
Manager

Manager Deputy
Manager

Deputy
Manager

Deputy
Manager

Assistant
manager

Machine
operator

Technical
officers


Helpers

Assistant
manager

Marketing officer

Superintendent

Clerks and
computer
operators


Accounts
superintend

Assistant
manager

Assistants

Supervisor

Marketing
assistant

Clerks and
computer
operators


Technician

Clerks and
computer
operators

Helpers

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4.1).Main Office
10/24, KumaraKrupa Road,
High Grounds
City: Bangalore
State: Karnataka
Pincode: 560001
Email ID: investors@himatsingka.com
Web Url: http://www.himatsingka.com

5).Structure of the Financial Department






Cash
Assistant Cashier
Accountant
Clerk
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5.1). Number of employees working in Finance Department

Section Employee
Cashier 1
Assistant cashier 1
Accountant 1
Cash Accountat 1
Total 4

5.2). Finance and Accounting Operations
In HIMATSINGKA SEIDE LTD the accounting operations can be done through the Tally, SAP
software‟s.
6). Functions of the Finance Department
6.1). Accounting system of the organization
In HSL every year their accounting period starts from the month of April and ends in the month
of the March. They tend to follow all the accounting principles and conventions eventually. Later
on the financial statements which have been prepared by the accountants are thoroughly verified
and checked by the internal auditors. This is the accounting system which has been followed in
this organization
6.2).Finance system of the organization
In this organisation the financial department maintenance books of accounts. This department is
responsible for the record keeping of all the transactions, receiving of cheques and issuing of
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cheques to the parties concerned. The profitability of each order is monitored by the department.
Payment of wages and salaries to the employees, invoicing, banking, sales tax, income tax,
excise duty and employees‟ perks and incentives are totally looked after by this department. They
also monitor healthy financial position of the company.
6.3). Use of electronic data in decision- making
They use Tally Software (Accounting Software) as the electronic data in decision-making. Here
they maintain their each and every day transaction. They prepare all accounts and financial
statements in the tally software itself.
6.4). Mobilization of funds
In this mobilization of funds, the funds are mobilized through operating expenses and
administration expenses.
6.5).Generation of Funds:
In this generation of funds, Funds are generated from the incomes gained by the different
products like Valve body, Fly wheel, Gear Box, etc.

6.6).Sources of Funds:
The main sources of funds for this company and also it collects the loan.

6.7).Allocation of funds:
Here allocation means distribution of funds. They are distributing fund in different department in
HSL.




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7).RATIO ANALYSIS
INTRODUCTION
Financial statement analysis:
It highlights important relationships in the financial statements, & embraces the methods used in
assessing and interpreting the results of past performance and current financial position.
Financial Ratio:
It is a relationship between two financial variables. It helps to ascertain the financial condition of
a firm.
RATIO ANALYSIS
Ratio analysis is the powerful tool of financial analysis. Ratio is defined as the indicated quotient
of mathematical expression and as the relationship between two or more things. In financial
analysis the ratio is used as a benchmark of financial position and performance of the firm. Ratio
is a statistical yardstick that provides a measure of relationship between two figures.
It is the technique of calculation of number of accounting ratio from the data or figures found in
the financial statement the comparison of the accounting ratio with those of previous year or with
those of other concerns engaged in similar line of activities or with those of other standard or
ideal ratio and the interpretation of the comparison.
Selection of relevant data from the financial statements depending upon the objective of the
analysis.
 Calculation of appropriate ratios from the above data.
 Comparison of the calculated ratios with the ratios of the same firm in the past, or the
ratios developed from the projected financial statements or the ratios of some other
firms or the comparison with ratios of the industry to which the firm belongs.
 Interpretation of the ratios.

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CLASSIFICATION OF RATIOS
I] LIQUIDITY RATIOS
II] LEVERAGE OR SOLVENCY RATIOS
III] ACTIVITY OR EFFICIENCY RATIOS
IV] PROFITABILITY RATIOS

I. LIQUIDITY RATIOS
It measures the ability of the firm to meet its current obligations (liabilities). In fact analysis of
liquidity needs the presentation of cash budgets, cash and fund flow statements; by liquidity
ratio, by establishing a relationship between cash and other current assets to current obligation,
provide quick measure of liquidity. Firm ensure that it does not have excess liquidity. Failure of
company to meet its obligations due to lack of sufficient liquidity, will result in poor credit
worthiness, loss of creditor confidence or even in legal tangles resulting in the closure of the
Company .A very high degree of liquidity is also bad; idle assets earn nothing. The firm‟s funds
will be unnecessarily tied up in the current assets. Therefore, it is necessary to strike a proper
balance between high liquidity & lack of liquidity.
The most common ratio, which indicates the extent of liquidity or lack of it, is
a) Current ratio &
b) Quick ratio.
c) Acid Quick ratio

II. LEVERAGE RATIOS
The short- term creditors, like banks & suppliers of raw material, are more concerned with the
firm‟s current debt paying ability. On the other hand, long term creditors, debenture holders and
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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 the firm, financial leverages or capital structure ratio calculated.
These ratios indicate the mix of funds provided by the owners and lenders. As a general rule,
there should be an appropriate mix of debtors and owner‟s equity in financing firm‟s assets.
III. ACTIVITY RATIOS
Funds of creditors and owner are invested in various assets to generate sales and profits. The
better management of assets, the lager amount of sale. Activity ratios are employed to evaluate
the efficiency with which the firm manages and utilizes its assets. These ratios are also called as
turnover ratios because they indicate the speed with which assets are being converted or to
turned over in to sales. Activity ratio, thus, involve a relation between sales and assets. A proper
balance between sales and assets generally reflects that assets are managed well. Several activity
ratios can be calculated to judge the effectiveness of asset utilization.
IV. PROFITABILITY RATIOS
Profit is the difference between revenue and expenditure over a period of time. Profit is an
ultimate output of the company, and it will have no future if it fails to make sufficient profits.
Therefore, the financial manager should continuously evaluate the efficiency of the company in
terms of profits. The profitability ratios are calculated to measure the operating efficiency of the
company. Besides management of the company, creditors and owners are also interested in the
profitability of the firm.
Advantages of Ratios Analysis:
Ratio analysis is an important and age-old technique of financial analysis. The following are
some of the advantages / Benefits of ratio analysis:
 Simplifies financial statements: It simplifies the comprehension of financial statements.
Ratios tell the whole story of changes in the financial condition of the business
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 Facilitates inter-firm comparison: It provides data for inter-firm comparison. Ratios
highlight the factors associated with successful and unsuccessful firm. They also reveal
strong firms and weak firms, overvalued and undervalued firms.
 Helps in planning: It helps in planning and forecasting. Ratios can assist management, in
its basic functions of forecasting. Planning, co-ordination, control and communications.
 Makes inter-firm comparison possible: Ratios analysis also makes possible comparison of
the performance of different divisions of the firm. The ratios are helpful in deciding about
their efficiency or otherwise in the past and likely performance in the future.
Help in investment decisions: It helps in investment decisions in the case of investors and
lending decisions in the case of bankers etc

I] LIQUIDITY RATIOS
1) CURRENT RATIO = Current Assets
Current Liabilities
Standard Ratio = 2:1
Table showing the CURRENT RATIO of HIMATSINGKA SEIDE LTD from the year 2009 to
2013: Rs (in Crores)
Years Current Assets Current Liabilities
Current ratios(in
times)
2009 389.34 147.82 2.63
2010 424.41 140.59 3.01
2011 389.90 150.96 2.58
2012 346.99 234.83 1.48
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2013 412.93 218.03 1.89




Analysis
The above graph clearly indicates that the current ratios for the study periods. In five
years the current assets value is more in 2010. From the above chart it can be found that in the
year 2012 company‟s current ratio has reduced to 1.48.
Interpretation
As per the Accounting standard current ratio is 2:1. HIMATSINGKA SEIDE LTD
current ratio is more than the average 2:1 which means the company is meeting its short term
liabilities in time, but in the current year the ratio has decreased. That means firm has taken
measures to employ only optimum amount working capital needed in to the business.

2) QUICK RATIO = Quick Assets (Except Stock & Prepaid expenses)
Quick Liabilities (Except Bank over draft & Cash credit)
0
0.5
1
1.5
2
2.5
3
3.5
2009 2010 2011 2012 2013
Current Ratio
Current Ratio
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Standard Ratio = 1:1
Table showing the QUICK RATIO of HIMATSINGKA SEIDE LTD from the year 209 to
2013: (Rs. In crors )
years quick assets current liabilities Quick ratio

2009 269.21 147.81 1.82
2010 227.58 140.59 1.61
2011 223.68 150.96 1.48
2012 190.36 234.83 0.81
2013 268.55 218.03 1.23


0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2009 2010 2011 2012 2013
Quick Ratio
Quick Ratio
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Analysis
From the above graph shows the quick ratio in the year 2009 is 1.82, it has been Decrease
In year 2012 is 0.81, again its has been increase to 1.23 in year 2013 respectively.
Interpretation
The ideal ratio of Quick ratio is 1:1. In the case of HIMATSINGKA SEIDE LTD, the
liquidity ratio exceeds the standard in every year, so its performance in respect of liquidity is
satisfactory.
SOLVENCY RATIOS
Solvency Ratio = Total Assets
Total Liabilities

Years 2009 2010 2011 2012 2013
Total Assets
1,193.49 1,158.59 1,171.47 1,225.18 1,150.56
Total Liabilities
1,193.49 1,158.59 1,171.47 1,225.18 1,150.56
Ratio 1.00 1.00 1.00 1.00 1.00



0
0.2
0.4
0.6
0.8
1
1.2
2009 2010 2011 2012 2013
Solvancy RATIO
Solvancy RATIO
HIMATSINGKA SEIDE LTD (HSL)

DEPARTMENT OF MANAGEMENT STUDIES-BEC (BAGALKOT) Page 27

Analysis
The above graph clearly indicates that the solvency ratios for the study periods. In five
years the current assets value is same in all the year.
Interpretation
As per the Accounting standard current ratio is 1:1. HIMATSINGKA SEIDE LTD
solvency ratio is equal than the average 1:1. The solvency ratio is the ratio between the total assets
and the total liabilities of a concern. The solvency ratio is a measure of the solvency of a concern.
Solvency of a concern means the ability of a concern to meet its total liabilities out of its total assets.
WORKING CAPITAL TURNOVER RATIO:
Net Sales
Working capital Turnover Ratio =
Net Working Capital
Where, Net Sales= Total sales-Sales Return
Net Working Capital= Current Assets-Current Liabilities

Table showing the WORKING CAPITAL TURNOVER RATIO of HIMATSINGKA
SEIDE LTD from the year 2009 to 2013: (Rs. In Crors)
years Net sales Net working capital
Working capital
turnover Ratio(in
times)
2009 408.30 241.52 1.69
2010 456.24 283.81 1.60
HIMATSINGKA SEIDE LTD (HSL)

DEPARTMENT OF MANAGEMENT STUDIES-BEC (BAGALKOT) Page 28

2011 508.02 238.94 2.13
2012 650.43 112.16 5.08
2013 714.47 194.90 3.67


Analysis
From the graph shows the working capital turnover ratios in the year 2009 is 1.69, it has been
Increased in year 2012 is 5.80, again its has been decrease to 3.67 in year 2013 respectively.
Interpretation
From the study, it is clear that, in the year 2012 the ratio is higher than all other years. Therefore,
it can be considered that there is lower investment in working capital, which shows that the
debts are collected in time.


0
1
2
3
4
5
6
7
2009 2010 2011 2012 2013
Working Capital Turn over Ratio
Working Capital Turn over Ratio
HIMATSINGKA SEIDE LTD (HSL)

DEPARTMENT OF MANAGEMENT STUDIES-BEC (BAGALKOT) Page 29

8).Future prospects of the organization:
Information revolution promises to bring the world closer to cohesion, in the emerging face of
fast moving information, technology transfer is bound to take place at a higher speed. As the
international borders blur supply chain management and information technology take a crucial
role in apparel manufacturing. Global partners in the clothing industry up.
Upcoming technologies for mass customization such as three- dimensional non-contact body
measurement and digital printing ought to be discussed thoroughly and implemented fast. This
mass customization shall be successful for meeting unpredictable demand. It is to be noted that
mass customization is different from mass production. Inventory planning. Sales forecasting,
manufacturing strategy, distribution network and transportation are some of the areas which
needed improvement. The economic scene of USA and its trade partners need to be eyed
carefully if India is to survive in the faster and throat cut competition of 21
st
century.

9).Findings:
From the above study find that
 Current ratio 2011is 2.58 and it decrease in 2012 is 1.48, again its has been increase to
1.89 is 2013, this current ratio is too mach less than the normal ratio of 2:1, weakening
the short-term solvency of the company.
 Quick ratio 2011 is 1.48 and it decreases 2012 0.81, but 2013 is increase in 1.23 of the
company is up to the standard ratio required which shows a good sign for company.
 There is a good relationship between management and the employees and among the co-
worker which is very important and it is plus point to the organization.
 Most of the employees are middle aged and they have basic education.
 The company provides welfare facilities such as locker setting facility, rest room, lunch
room.
HIMATSINGKA SEIDE LTD (HSL)

DEPARTMENT OF MANAGEMENT STUDIES-BEC (BAGALKOT) Page 30

 The company should continuously strive for improvements in existing products and also
introduce new innovative products from time to time to meet the growing of the
consumers.

12). SUGGESTIONS
 The company must have to reduce its credit period from 180 days to 30 days, so the company
can achieve the better profitable position.
 Company has to analyses the credit worthiness of its customers before providing credit
facilities and has to take corrective and prompt actions for realizing the debt before they
become doubtful; it will enable the company to improve its profitability position.
 Training the sales executive about how much credit should be given to each kind of customer
will help to reduce the bad debts
 The company should continuously strive for improvements in existing products and also
introduce new innovative products from time to time to meet the growing of the consumers.

11). CONCLUSION:
Himat singka seide ltd is engaged in manufacturing of silk, fabrics and yarn
products. It is important for Himat singka seide ltd to maintain stability and visibility in its
operations it is therefore very much important for HSL to bring in productivity in all its class of
operation. Creation of benchmark is very much important for setting up a standard and ensuring
the attainment of its objectives. The ratio analysis brings out many aspects where the valuation
ratios on profitability are very much favor in case of Himat singka seide ltd. However, HSL has
made large profits during last financial years.
Organization study at HIMATSINGKA SEIDE LTD (HSL) provided me a very good
opportunity to know about the organizational structure, formations and its working. It helped me
to gain practical knowledge about different functions of various departments of the
HIMATSINGKA SEIDE LTD (HSL)

DEPARTMENT OF MANAGEMENT STUDIES-BEC (BAGALKOT) Page 31

company. All the staffs in the company were very much cooperative and very keen to explain
each aspect. This training helps to make a thorough study of the company‟s activities in each
section to acquire practical knowledge in this field. This study will be of great benefit for my
future career.

11.1) BIBLIOGRAPHY
Reference Books:
1. Financial Management.
Author: I.M.Pandey.

2. A Textbook of Financial Cost and Management Accounting.
Source: Internet

3. Analysis and Interpretation of Financial Statements.
Author: Sudip Das

12.1). WEBSITE
 www.yahoofinance. com
 www.himat singka seide ltd
 www.moneycontrol. com
 www.google.com
12.2). ANNEXES
BALANCE SHEET OF HSL AS 31-3-2009 TO 31-3-2013
Particulars
31-3-2009 31-3-2010 31-3-2011 31-3-2012 31-3-2013
EQUIY AND LIABILITIES

Shareholder's Funds

Shareholder Capital 4,922.86 4,922.86 4,922.86 4,922.86 4,922.86
HIMATSINGKA SEIDE LTD (HSL)

DEPARTMENT OF MANAGEMENT STUDIES-BEC (BAGALKOT) Page 32

Reserve And Surplus 5,1193.14 51,727.14 47,509.14 46,793.97 50,257.31
56,116.00 56,650.00 52,432.00 51,716.83 55,180.17

Noncurrent Liabilities

Long Term Borrowings 44158.88 51808.07 26,670.01 23,523.04 29,298.07
Other Long Term Liabilities 000,00 000.00 68.00 137.8 210.7
Long Term Provisions 394.47 390.61

24,055.31 29,899.38

Current Liabilities

Short Term Borrowings 000.00 000.00 14989.88 14,666.83 11,453.17
Trade Payables 6282.74 11099.80 10314.14 12,142.50 13,069.96
Other Current Liabilities 5,42.00 7,77.64 7,726.22 7,826.25 6,117.42
Short Term Provisions 7,958.54 2,188.87 20,14.24 2,982.25 2,365.24
14,783.28 14,066.31 35,044.48
37,617.98 32,654.79

113,390.12 117,734.34
ASSETS

Non- current assets

Fixed Assets

Gross block 66022.00 73,565.73 75,616.12 76,368.56 76,557.54
Less: Deprecation 19584.77 23,953.90 27,720.62 32348.48 35878.24
Net block 46,437.23 49,611.83 47,895.50 44020.08 40,679.3
Capital Work-In-Progress 5,628.23 2,756.36 639.78 887.16 602.69
52065.46 52368.19 48,535.28 44,906.17 41,282.04
Long Term Loans And Advances 16850.54 17,095.74 16,588.27 5,907.21 13,066.38
Other Noncurrent Assets 21142.24 27249.35 28,835.24 32,836.70 35,159.56
90,058.24 96713.28 93958.79 83,650.70 90,583.37

Current Assets

HIMATSINGKA SEIDE LTD (HSL)

DEPARTMENT OF MANAGEMENT STUDIES-BEC (BAGALKOT) Page 33

Current Investment 2914.25 459.42 675.87 947.56 -
Inventories 12069.97 19683.37 16622.24 15,660.32 14,437.91
Sundry debtors 4,981.13 5,325.99
Cash 328.84 844.42 287.41 251.43 1,466.50
Short-Term Loans And
Advances


1121.89


2870.61


2172.43
3,632.95 2,903.69
Other Current Assets 19960.41 13718.34 2172.14 1,989.48 1,118.16
36395.11 37576.16 21929.95 29,739.50 27,150.97
TOTAL 126453.35 134289.44 115888.74 113,390.12 117,734.34