1.

INTRODUCTION
1.1 ABOUT THE INDUSTRY

Indian Textile Industry contributes about 11 percent to industrial production, 14 per cent to the
manufacturing sector, 4 percent to the GDP and 12 per cent to the country's total export earnings.
It provides direct employment to over 35 million people, the second largest provider of
employment after agriculture. Besides, another 54.85 million people are engaged in its allied
activities. The fundamental strength of this industry flows from its strong production base of
wide range of fibers / yarns from natural fibers like cotton, jute, silk and wool to synthetic /man-
made fibers like polyester, viscose, nylon and acrylic.

Indian Textiles Industry in Global Textiles

As per the latest available WTO data, India’s percentage share in the global textiles and clothing
trade was 4.3% in textiles, and 3.3% in clothing during the year 2006. India’s rank in world trade
has been 7th in textiles and 5th in clothing. Other remarkable position achieved by it as 4th
largest producer of staple fibre and 6th among filament yarn producers. It accounts for one fourth
of global trade in cotton yarn.

Indian Textile Industry can essentially be categorized into two segments:

 Organized Textile Industry is highly organized with immense importance on capital intensive
production process. This sector is characterized by sophisticated mills where technologically
advanced machineries are utilized for mass production of textile product
 Unorganized Textile Industry Unorganized sector is the dominant part in this industry which
mainly utilizes the traditional practices (woven or spun) in cloth production and hence is labor
intensive in nature. This industry is characterized by the production of clothes either through
weaving or spinning with the help of hands. The decentralized nature is considered as another
important feature of the unorganized textile industry in India.

Indian textile industry concludes of various segments like:

1. Woolen Textile
2. Cotton Textiles
3. Silk Textiles

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 4. Readymade Garments
5. Jute And Coir
6. Hand-Crafted Textile Like Carpets
7. Man Made Textiles

It’s not just the present that is shinning like a bright start but also the future, as the textile export
market of India is expected to reach a high of $50 billion by 2010. This will eventually make a
profit by 300%. In order to attain this target Indian textile industry has already started improving
their design skills, including a combination of various fibers. Indian textile industry is all set to
meet international standards and is planning to invest $5 billion in machineries very soon.
The golden phase of the Indian textile industry has just begun where the world is chasing it from
all nooks and corners.

Key Players in Indian Textile Industry

Following are some major players in the vast field of Indian Textile Industry.

 Arvind Mills
 Raymonds
 Reliance Textiles
 Vardhman Spinning
 Welspun India (Manufactures terry towels)
 Century Textiles (Composite mill, cotton & Man-made)
 Morarjee Mills (Fully integrated Composite Mill)
 Indo Rama (Cotton and Man-made)
 GTN Textiles (Cotton Yarn and Knit Fabrics)
 Ginni Filaments Ltd. (Yarn and Fasbric)
 LNJ Bhilwara Group (Diversified and vertically integrated denim producer with
spinning and weaving capacity)
 Mafatlal Textiles (Fully integrated Composite Mill)
 Modern Group (Diversified, producer of denim, syntax and thread)
 Ashima Syntex (Man-made Fiber)
 KG Denim (Fabrics)

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 Sanghi Polyesters Ltd. (Manmade Fiber)
 Nova Petrochemicals (Man-made Fiber)
 S. Kumar Synfabs Ltd. (Home furnishing and Suit Fabrics)
 Bombay Dyeing Ltd. (Composite and fully integrated)
 Rajasthan Petro synthetics (Diversified)
 BSL Ltd. (Textiles)
 Garware Polyester (Diversified)
 Banswara Syntex (Composite)
 National Rayon Corp. (Man-made fiber)
 GSL India Ltd. (Threads)
 Indian Rayon (Man-Made Fiber)
 Alok Textiles (Cotton and Man-made Fiber Textiles)
 Sharda Textile Mills (Man-made Fiber)
 Birla Group Dormeuil Birla VXL Ltd. (Fully integrated woolen textiles)
 Gokuldas Images (Diversified)
 Hanil Era Textiles (Yarn, Cotton & Man-made Fiber)
 Oswal Knit India (Woolen Wear)
 Niryat Sam Apparels (Apparel)
 Filaments India Ltd. (Manmade Textiles)

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1.2 ABOUT THE COMPANY

RAYMOND TEXTILE
Incorporated in 1925, Raymond Limited has five divisions comprising of Textiles, Denim,
Engineering Files & Tools, Aviation and Designer Wear.

Raymond Textile is India's leading producer of worsted suiting fabric with over 60% market
share. With a capacity of 25 million meters of wool & wool-blended fabrics, Raymond Textiles
is the world’s third largest integrated manufacturer. The company exports its suiting to more than
50 countries including USA, Canada, Europe, Japan and the Middle East. Over the years,
aymond Textile has developed strong in house skills for research & development, which has
resulted in path-breaking new products. Perceived as pioneer and innovator, Raymond Textile
has been responsible for raising the standard of the Indian textiles industry.

Garment companies have been successful in the Indian market using different approaches and
distribution methods. Raymond, with its history of more than 75 years, relies on its long-standing
reputation; loyal customer base and well-established, extensive retails network in over 400 towns
through 30,000 retailers and over 270 exclusive Raymond Shops. Sometime in the 1960.s one of
Raymond’s regular textile importers in Sweden made the observation that the cost of
manufacturing readymade garments was becoming increasingly prohibitive in his country. This
was true for the rest of Europe as well.

Raymond was quick to seize this opportunity. Assessing the viability and future scope of
garment exports, Raymond set up a readymade garment plant at Thane (Mumbai) in1968 while
the machinery and equipment arrived from Italy, Sweden, Germany and the U.S., the know-how
came from Scandinavia. Swedish experts trained a team of technicians at Raymond in every area
of the garment business contribution in making these utilitarian items.

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BOMBAY DYEING
Bombay Dyeing is one of the leading companies in the textile business. In fact, India has made a
position in the world textile sector holding the hands of Bombay Dyeing. The textile products of
the company are exported to different nations all across the world like the United States,
European Union Countries, Australia and History of Bombay Dyeing.
Bombay Dyeing was incorporated in the year 1879, by the Wadia Group and within a short span
of time created a name for itself in the textile business. The chairman of Bombay Dyeing at
present is Nusli Wadia. Moreover, in today’s world, Bombay Dyeing is a household name with
above 600 franchise retail shops all across the country.

Bombay Dyeing by using advanced technology has brought about a change in the textile
business. The entire production is divided into two broad streams, weaving and spinning and
winding. The production level on a daily basis is over 300,000 meters of fabrics. Some of the
important products of the company that have already become significant in both, domestic and
export markets are:

 Cotton Sheeting

 Polyester Cotton Sheeting

 Poly Cotton Drills

 Shoe Lining and Duck Fabrics

 Satin Furnishings

 Yarn dyed fabrics

 Flannel Sheeting

 Dobby and Fine Count made-ups

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  Down proof Shells and Comforters

 Towels, Table Tops and Napkins

Bombay Dyeing at present is the largest exporter of sophisticated made-up items and also of
products made of cotton and poly cotton. Bombay Dyeing has created a sizable market in the
production of a wide range of fabrics and ready-mades. This includes both formal and casual
wear. The ready-made collection of the Bombay Dyeing has been changing its production pattern
with the evolving fashion trends. The consumer section of Bombay Dyeing comprise of bed
linen, towels, furnishings, suiting and shirting fabrics, and cotton and polyester blended dresses .
The technology applied in the production process in Bombay Dyeing is of international
standards. Regarding the weaving facilities, the technology used is from one of the most
technologically advanced company of the world, Sulzer. The automations used in weaving,
spinning and winding by Bombay Dyeing are like Sulzer Projectile Machines, Sulzer Airjet
Machines, Schlaf horst Autocore Rotors, Auto Corner Winding Spindles and Schweiter CA - 11
Spindles. New Zealand.

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2. RESEARCH METHODOLOGY

RESEARCH OBJECTIVES

 To study the current position of the companies on the basis of current assets, fixed assets,
current liabilities and fixed liabilities.
 To do comparative analysis of the two companies for the two consecutive years.
 To analyze the behavior and trend of current assets and current liabilities among the
company itself.

SOURCES OF INFORMATION

 Primary Data – No primary data was available for the project.

 Secondary Data – All the details necessary for the study was available from the
annual reports and official website of Raymond and Bombay Dyeing and text books
of Accounts.

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3. THEORY

Assets
These are the properties and are in the possession of the Business concern. These assets represent
rights or other access to the future economic benefits controlled by the organization. Land,
Buildings, Machines, Furniture, Stock, Bills Receivable, Cash in hand and at Bank, etc…., are
some of the examples of Assets. These assets comprise of three categories of assets viz, fixed
assets, current assets and fictitious assets.

Fixed Assets are those assets which are long lasting assets and which are acquired not for re-sale
but for their use in the business either for revenue generating activities such as production,
supply etc, or for administrative purposes. They denote the ownership of long -lasting assets
capable of creating value to the business. Land, Buildings, Machinery, Furniture, etc., are
example of fixed assets.
Physical resources such as Building, Machinery, Furniture, etc., which can be seen and touched
which have volume are called Tangible Assets.
On the other hand, the non-physical items such as patents, trademark, goodwill, etc, which
cannot be seen and touched and which have no volume but which have value( sometimes, a
sizeable value) are called Intangible Assets.

Current assets
These are the assets which are meant for conversion into cash and which are available readily to
discharge the current obligations and to meet the working capital requirements of the business.
Cash in hand, Cash at bank, debtors (net of provision for bad and doubtful debts), bills
receivable, pre-paid expenses, inventories, marketable securities, etc.., are examples of current
assets. Since the items of current assets are bound of change in value by business transactions,
they (i.e, current assets) are also called floating or circulating assets. These current or floating
assets include both the liquid assets and other items of current assets.

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The Liquid Assets are those current assets which can immediately, or at a short notice, be
converted into cash without loss of, or diminution in, value. The liquid assets, therefore, include
all the items of current assets except inventories and pre-paid expenses.
Fictitious Assets are those assets which have actually no value and which are merely unwritten
off losses or past costs. Accumulated losses, discount allowed on the issue of shares and
debentures, preliminary expenses, Profit and Loss account debt balance, etc., are examples of
fictitious assets.

Liabilities

Liabilities refer to the financial obligations of a business. These denote the amounts which a
business owes to others, e.g., loans from banks or other persons, creditors for goods supplied,
bills payable. An obligation that legally binds an individual or company to settle a debt. When
one is liable for a debt, they are responsible for paying the debt or settling a wrongful act they
may have committed. Any legal responsibility, duty or obligation. The state of one who is bound
in law and justice to do something which may be enforced by action. This liability may arise
from contracts either express or implied or in consequence of torts committed. The liabilities of
one man are not in general transferred to his representatives further than to reach the estate in his
hands.

Liability Accounts

Anything that is owed to others is a liability.  Liabilities are often referred to as "payables".

Liabilities are generally separated into two groups:

Current Liabilities
Debts to others that are due in a short period of time and are paid with current assets.
Long-term Liabilities
Debts that are "fixed" or paid over a long period of time, often for plant assets.

Common Liability Accounts:

Current Liabilities

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 • Notes Payable - Promissory notes to creditors.
• Accounts Payable - What you owe others on account.
• Unearned Revenue - You've been paid, but haven't delivered.
• Salaries Payable - Salaries you owe employees.
• Interest Payable - Interest you owe.
• Taxes Payable - Taxes you owe.

Long-Term Liabilities
Liabilities that are carried over a number of years or at least more than one accounting cycle. 
Examples of long-term liabilities are mortgages payable, bonds payable, and long-term notes.
For example, if John hits Jane's car, John is liable for the damages to Jane's vehicle because John
is responsible for the damages. In the case of a company, a liability is recorded on the balance
sheet and can include accounts payable, taxes, wages, accrued expenses, and deferred revenues.
Current liabilities are debts payable within one year, while long-term liabilities are debts
payable over a longer period.

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4. COMPARATIVE ANALYSIS
A. CURRENT ASSETS

Table 4.1: Table depicting the current assets of Raymond for the year 2009 and 2010

Current Assets 2009 2010

Rs.(in Lacs) 1053.27 1010.18

Table 4.2: Table depicting the current assets of Bombay Dyeing for the year 2009 and 2010

Current Assets 2009 2010

Rs.(in Lacs) 1167.20 1091.56

1200

1150

1100

1050 Raymonds
Bombay Dyeing

1000

950

900
2009 2010

Chart 4.1: Chart depicting the currents assets for the year 2009 and 2010

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B. FIXED ASSETS

Table 4.3: Table depicting the fixed assets of Raymond for the year 2009 and 2010

Fixed 2009 2010

Assets
Rs. (in Lacs) 999.05 940.42

Table 4.4: Table depicting the fixed assets of Bombay Dyeing for the year 2009 and 2010

Fixed Assets 2009 2010

Rs.( in Lacs) 779.4 952.18
7

1200

1000

800

600 Raymonds
Bombay Dyeing

400

200

0
2009 2010

Chart 4.2: Chart depicting the fixed assets for the year 2009 and 2010

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C. OTHER ASSETS

Table 4.5: Table depicting the other assets of Raymond for the year 2009 and 2010

Other Assets 2009 2010

Rs. (in Lacs) 888.59 889.54

Table 4.6: Table depicting the other assets of Bombay Dyeing for the year 2009 and 2010

Other Assets 2009 2010

Rs. (in Lacs) 60.22 60.19

1000

900

800

700

600

500 Raymonds
Bombay Dyeing
400

300

200

100

0
2009 2010

Chart 4.3: Chart depicting the other assets for the year 2009 and 2010

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D. SHARE CAPITAL LIABILITIES
Table 4.7: Table depicting the share capital liabilities of Raymond for the year 2009 and 2010

Share capital 2009 2010

liabilities
Rs. (in Lacs) 61.38 61.38

Table 4.8: Table depicting the share capital liabilities of Bombay Dyeing for the year 2009 and 2010

Share capital 2009 2010

liabilities
Rs. (in Lacs) 38.61 38.61

70

60

50

40
Raymonds
30 Bombay Dyeing

20

10

0
2009 2010

Chart 4.4: Chart depicting the Share capital liabilities for the year 2009 and 2010

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 E.LONG TERM LIABILITIES
Table 4.9: Table depicting the Long Term liabilities of Raymond for the year 2009 and 2010

Long Term 2009 2010

Liabilities
Rs. (in Lacs) 868.85 756.96

Table 4.10: Table depicting the Long Term liabilities of Bombay Dyeing for the year 2009 and 2010

Long Term 2009 2010

Liabilities
Rs. (in Lacs) 1499.00 1611.97

1800

1600

1400

1200

1000
Raymonds
800 Bombay Dyeing

600

400

200

0
2009 2010

Chart 4.5: Chart depicting the LongTerm liabilities for the year 2009 and 2010

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 F.SHORT TERM LIABILITIES
Table 4.9: Table depicting the short Term liabilities of Raymond for the year 2009 and 2010

Short Term 2009 2010

Liabilities
Rs. (in Lacs) 476.22 495.57

Table 4.10: Table depicting the Short Term liabilities of Bombay Dyeing for the year 2009 and 2010

Short Term 2009 2010

Liabilities
Rs. (in Lacs) 211.88 163.14

600

500

400

300 Raymonds
Bombay Dyeing

200

100

0
2009 2010

Chart 4.5: Chart depicting the Short Term liabilities for the year 2009 and 2010

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 G.CURRENT LIABILITIES & PROVISION
Table 4.9: Table depicting the current liabilities& provision of Raymond for the year 2009 and 2010

Current 2009 2010

Liabilities&
Provision
Rs. (in Lacs) 510.09 456.15

Table 4.10: Table depicting the current liabilities& Provision of Bombay Dyeing for the year 2009 and
2010

Current Liabilities&Provision 2009 2010

Rs. (in Lacs) 347.4 326.86

600

500

400

300 Raymonds
Bombay Dyeing

200

100

0
2009 2010

Chart 4.5: Chart depicting the Current liabilities&Provision for the year 2009 and 2010

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REFERENCES

TEXT REFERENCES
 Accountancy for Managers by J. Made Gowda
 Accountancy by D.K. Goel
 Accounts for XII by T.S. Grewal

WEB REFERENCES
 www.raymondindia.com
 http://www.bombaydyeing.com
 www.citiindia.com
 http://money.rediff.com/

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