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Sr. No. 1 Industry Profile


Page No. 1

Company Profile

Finance Department


HR Department


Production Department


Marketing Department







We take the opportunity to express the feeling of gratitude towards South Gujarat University for keeping Industrial training as a part of Bachelor of Business Administration Course It is an occasion of great pleasure and a matter a deep felt personal satisfaction to present this complied statement of the project work undergone at company of a great esteem Garden Silk Mills Limited. First, we believe that full credit of having completed the prescribed training should go to the coordinator of VIVEKANAND COLLEGE FOR B.B.A. for making available all facilities in fulfilment the requirement for my project report. The project would have been possible through out the experience, guidance and supervision of Ms. Varsha Patel has potentially and critically gone through the subject matter. We wish to place on record the operation give me by Mr. Bipin Modi(Director of the Garden Silk Mills Ltd.) for making capable of teaching new things, which are helpful in our practical life. We are also thankful to the staff of the Garden Silk Mills Ltd. For giving a practical knowledge and help me for satisfactory completing my project report. We take this opportunity to thank all those who directly or indirectly were instrumental in the completion of our project work.

We, Kapadia Pratik, Patel Jigar and Patel Yogesh here by declare that this project is submitted to GARDEN SILK MILLS LTD. As per Veer Narmad South Gujarat University requirement of Bachelor of Business Administration curriculum is our original work based on the finding during the project. We will not submit this report to obtain any other degree in future and no other person will be allowed to copy from this project in any form. If we are found to be guilty of not fulfilling the above promises, our submission can be declares invalid and college has the right to reject this.

Kapadia Patik S. Date: Patel Jigar D. Place: Patel Yogesh D.


After completing our project in one of the leading yarn manufacturing company like GARDEN SILK MILLS LTD. They produce yarn of best quality according to the needs of the buyer. During the project report, we observed that all the employees working in this company are more co-operative, disciplined & helped us in completing our project. From the study conducted & analysed so far, it can be conclude that, organization provides various facilities to their employees. They treat their employees as a family members that result in success of the company. The company believes that employees are the main property for them, so they have to take care of them by various programs. During the training period we found that the Garden Silk Mills Ltd. Only does not manufacture the different types of yarn but it also manufacture all type of materials for sari as well as dress. By the study of various department we observed that all the department are managed, arranged, scheduled properly, so that the employees cannot feel difficulties in working. During this vocational training we had good experience that increases our knowledge. It was a great honour to get training under this company and we also found that the Garden Silk Mills Ltd. has a good reputation in the market about their quality of product.

World fiber consumption grew by 3.8% in 2006. of this cotton grew by 2.5% and polyester by 4.4%. Polyester filament yarn, the fastest growing major fiber category, and the industry in which your company operates, grew by 6.5% worldwide. China and India are the worlds largest PFY producers. Moreover, PFY growth is completely dominated by these 2 countries. This domination is expected to continue. The world PFY growth, excluding China and India, is strongly negative. Indias PFY industry is still a little over a tenth of the size of China but our growth is expected to be faster. Indias economy has been growing at an unprecedented rate of 8.6% per annum over the last 4 years. Manufacturing has been a great contributor; growing at 9.5% p.a. the accelerated growth of the company has substantially impacted the PFY industry growth as well, which has outperformed the real GDP growth. After a lull for a few years the industry grew dramatically last year eliminating the oversupply that industry observers had predicted would last for a few years more. While capacity grew by 38% to over 2 million TPA, production grew even faster. The growth was due to both export demand as well as domestic consumption. The Indian cotton crop is owing to the rapid increase in yields made possible by increased use of BT cotton and improved water management. However, this is not expected to impact the Indian polyester industry since the global shortage of cotton should imply high cotton prices. In the last budget, import duties on PFY and its raw materials PTA and MFG were reduced form 10% to 7.5%. During the year under review, excise duty on MFG was reduced from 16% to 12% which continues to be much higher than the 8% on PFY and remain an unfortunate anomaly. The Company operates across the entire polyester chain from polyester chips to finished fabrics. The party insulates it form temporary oversupply in any one component of the chain. It also gives the Company valuable information about final consumer and raw material trends. It also enables it to sense and respond to market movements quickly. Mostly, however, it allows for great synergies in product development that give the company an edge in product innovation and quality. The Companys leadership in product differentiation,

product quality and thus price realization gives it the opportunity and justification to grow rapidly in the fast growing PFY industry. The PFY market is the largest synthetic yarn market in India and accounts for over 50% of the total demand for synthetic yarn. Surat and its outskirts provide the largest market for PFY being the heart of the polyester filament weaving and processing industry. The companys manufacturing units have a locational advantage being situated in the heart of the polyester textile industry. Its location gives it proximity to both raw material suppliers as well as end users. The Surat area is also the most innovative textile center which gives the company a natural outlet for its specialty fabrics and yarns. Since the companys primary market is Surat, the ongoing and proposed expansion plans involve considerable production of final down stream/drawn yarn in particular fully drawn yarn and texturised yarn. The company enjoys a strong brand for its fabrics and yarns that has been built over the years. Its fabric distribution network is strong and spread across the country. Its fabric engineering and design capability is second to none in the country.


In India the main manufacturing of the textiles is done in the SURAT city. The SURAT textile industry has the largest concentration of looms in the world leaving manmade fabrics. It has a total coverage of approximately 1.75 lakhs which is even larger than that of Ahmedabad and Mumbai.


It is unbelievable that Surat is the largest center in the world for the production of synthetic fabrics like nylon and polyester. Daily production is about 42lakhs meters valued at Rs 4 crores per day. There are about 160 process houses, which processes nearly 25 lakhs meters per day. The industries in SURAT employees more than 1 lakh workers The beginning of the industry in SURAT is hardly 35 years old. Today, the number of authorized looms in SURAT is approximately 4 lakhs, though the total number of looms are anywhere between 1.5 and 1.8 lakhs. It is known from the reports that daily new machines are imported from china and Korea. There is new trend came which is known is sequence embroidery. These machines costs about 7 to 8 lakhs per machine but it designs many sarees at a time with the help of the computer. These machines are imported from China and Korea generally. In the 1950s, there were only about 7000 power looms in SURAT. The 10 families who have played a leading role for the growth of the industries are Bachkaniwalas, Hathiwala, Vakharia, Dhamanwala, Mahatma, Dr. Amichand Shah, Chevli and Lekhadia. Now days the Textiles business is very big in the SURAT, So, now the SURAT is known as the Textile City.


SilkMillsLtd. Is one of the Indias largest vertically integrated textile

companies with particular strengths in Polyester filaments based Textiles & yarns. Garden Vareli group of companies, one of the leading industrial groups in India, plays a leading role in the field of fashion fabrics. With annual sales exceeding U.S. $ 90 million, they sell their products under a single banner of quality Garden. GARDEN SILK MILLS LTD. is public limited company incorporate on July 23, 1979. It was authorized share capital of Rs. 60 crores, Equity shares of Rs. 10 each, out of which around Rs. 3, 82, 90,560 have been issued, subscribed and fully paid up. The shareholders here have seen much appreciation and received regular dividends which impose that the company is getting on prosperous year and is profit making venture. This is attribution to the three generation of the directors who have strived hard for the growth and progress of the company. The company has also seen much of highs and lows of the market and has successfully come out of all those, providing it to be a leader of textiles business of all times. The company has three production plants : One Vareli complex, at Village Vareli, Near Kadodara Junction,taluka palsana, National Highway .No.8, The Second at Village Jolwa, Near Bardoli, dist. surat and the Registered office at Garden Mills Complex, Sahara Gate, Surat. Today the company has total 293 its own retail and authorized outlets all over india. The company is having a very setup, with plants to manufacture dress material and sarees, right from the initial stage, viz, chemicals to finished fabrics. This has been possible because of the companys large capital base, attributable mainly to the large amount of share capital raised; reserve of various kinds being cautiously preserved and the loans form bank and financial institutions. The company had also raised capital through debenture in the past, majority of that have been repaid now. Since our inception we have been delivering excellent financial result year after year. This statement year the financial statement was placed before the board of directors and taken on record at their meeting. Garden Silk Mills Ltd. is one of the leading & oldest manufactures of synthetic in India. Garden Silk Mills Ltd. has been exporting their products to European markets

since late 1970s. The company has made vertical & horizontal integration from its establishment. The company has achieved a very good brand name in Indian & International market of sarees & dress materials.The company has achieved sales during financial year 2005-2006 of Rs.95,485.95 lacs & for the year 2006-2007 Rs.45,750.23 lacs.
The company has grown in all term during fast few year, in the economics prosperity and in the form of larger asset creation, making Garden Vareli to be leader of all times among textiles companies of the nation. It achieved ISO 9002 on February, 2000, which was its greatest achievement, and Garden Silk Mills become the first company ever achieve such creation in Surat.

This has brought fame to the city and to the nation all through the international sales and export income has been considerable. The company is expending even now and planned to increase its capacity in a phased manner until 2002.
The company is largest manufactured of POY and PFY in India. The company is the competitors of RELIANCE. The companys strategy is not to be top in the POY, but they are interested in to make the quality product which satisfy the customer needs at the most.


The company was first to setup a polyester filaments yarn project in south Gujarat. The project is capable of producing multi-filament & micro-filament yarn having a capacity of 5,000 tones per annum in collaboration with non-val leasina ag of switzerland. This project has a special significance for the company, as polyester filament yarn is the basic raw material for the product manufactured by the company. The company was also first in producing of two-for-one twister in india. The company's production facilities boast of one of india's most sophisticated textile plants at vareli, surat (Western India). Its weaving plant comprising nissan and tsudakoma waterjet looms - the highest number of waterjet looms under one roof in india - and rapier looms, automatic shuttle change looms etc, high-tech yarn preparatory machines viz, zirotwist-sizing, draw-warping, texturising and twisting machines, have a capacity of over 42 lac meters/month of greige fabric. The plant has an iso 9002 certification by bvqi. The company also markets high quality dyed and printed fabrics which it gets manufactured from associated firms.


The origins of the business go back to 1920 when Mr.Amichand shah installed the first hattersley looms in surat. The company belongs to Garden Vareli Group, which is one of the preceding manufactures of synthetic textiles in the country. Since 1920 the company expanded not only by increasing the production capacity and workforce of the business but also by pioneering new material and processes. To the early beginning of the art silk industry in Surat. Garden Silk Weaving Factory, as it was then named, manufacturing viscose becomes leader in jacquard fabric for years to come. The managing director of Garden Silk Mills Limited, Mr. Praful Shah is the youngest son of the founder, Dr Amichand Shah. He gained the degree in engineering from the university of Stanford in the USA in 1965 after which he joined the business prior in that date. He even extended the activities of the company to include processing cloth and even processing cloth. As a result of this the company was able to supply finished textiles for the first time. This move in the early 1970s conceded with the opening of the first retail shop in Surat. The extension of the policy of vertical immigration into the retailing sector had advantages of uniform pricing, close market monitoring, communications between manufacturer and consumer and above all the exerting downward pressure on the final selling price. The dedicated retail network now extends to some 293 authorized outlets. In 1975, the company recruited Fine Arts Graduates from leading institutions and an Art studio was set up. The company started introducing its own designs and supplied these designs in the market. Prior to this, the designs produced had been a function of customer demand and from this point onwards, the emphasis changed the design impetus coming from manufacturers. In the late 1970s, the company started exporting its products to European Market, Given the size of the domestics market, the proportion of the product that are exported remain low at approximately 2% The Company is in the process of further developing market in Africa, Central and Eastern Asia.

In the 1980s, the company developed a new site-Vareli, some 12kms away from Surat. This has become the manufacturing plant and investment of more than 2 billion has been made. Most of this expenditure has been targeted at the expansion and modernization of plant and equipment, particularly in the weaving and yarn preparatory sections. As a result, the company today has one of the most modern and sophisticated textile plants in India. The company has further its policy of vertical Integration by setting up a new plant, also near Surat, from which it will manufacture polyester filament yarn, one of its principle raw materials from polyester chips. Today, the company is one of the largest manufacturers in India of high fashioned, premium quality, dyed and printed textiles fabrics, both polyester and viscose comprising a range of chiffon and georgettes, crepes and faithful ladies, fashion as well as Indian sarees, The company also manufacturers an exclusive range of pure silk and cotton fabrics. The fabrics are marketed under the famous names Garden and Vareli.



Sahara Gate, Surat 395 010. Tel: (0261)2311197-98, 2311615 Fax :( 0261)2311029/502 Email:



Vareli complex, Village Vareli, Taluka. Palsana, Dist. Surat 394 327 Tel: (02622) 271241 47

Village Jolva, Taluka. Palsana, Dist. Surat 394 305 Tel: (02622) 271287-89


Manek Mahal, 90, Veer Nariman Road,

Church gate, Mumbai-400 020 Tel: (022) 2287 3117-19 Fax: (022) 2204 8112

Details of Promoters and Owners


Praful A Shah Shilpa P Shah Suhail P Shah Arunchandra N Jariwala Yatish Parekh Smita J Shah Anjan Mukherjee Alok P Shah Sanjay S Shah Rajen P Shah J P Shah Sunil S Sheth Madanial U Lankapati

DESIGANATION Chairman and Managing director Executive Director Executive Director Director Director Director Nominee Director Joint Managing Director Executive Director Director Director Director Director

Future plans of organization

GSM commenced commercial production of its new Continuous Polymerization (CP) project increasing the production capacity from216,000 TPA to 416,000 TPA from January 2009 on schedule and within budget. In March- June 09 the Company commissioned the latest technology POY and FDY equipments adding further spinning capacity of about 55,000 TPA.GSM has further undertaken an expansion project involving enhancement of Polyester textile grade Chips Capacity by 130,000 TPA which is expected to be commissioned by February of 2010. This will further enhance our capability to serve our clients demand of non-commodity chips, of which Garden is a leading supplier. Attache to this plant, as well as the older CP plants, machinery to directly spin a diverse range of yarns is in the preliminary project stage. This will downstream about 138,000 TPA of polymer into directly spun POY & FDY yarns. In addition, 11,000 TPA of semi-dull chips will feed specialized extruder-spun yarns in the same premises. The estimated completion date of these downstream projects is Q3 of 2010-11. In the year under review the original CP plant has been modified to optionally manufacture high-value polymeric chips for film-grade applications and textile applications requiring optical brightener additives. In order to maintain uninterrupted power supply to support these projects, your Company is setting up an 18MW power plant. The total cost for the upcoming projects is estimated to be around Rs400 cores.


Companys has its own culture and identity in business world. It is the effort of the company to maintain this identity and be leading in global market. Company has fixed its goal and laid down some certain missions to achieve them.


Maximum return to share holders. To improve companys position in business. To keep a slim and trim but fully satisfied management team to operate faster and to achieve higher levels of business and growth effectively. To ensure quality at all stages.

Oganisation Structure Of The Company

Sales management Compexecutives Top Staff resource Asst.C.A. Manager Managing director Marketing General Production Human Finance Manager Workers Chairman manager operators (All .partner)


Undoubtedly, money occupies a key position in the capitalistic economies at the modern ate. One at the most important function at the top management is to raise finance at a right time and in a right quantity and also to use it most effectively. In fact, this function constitutes the core at financial management; this is evident from the fact that while all other

function at management can be and frequently are delegated to the other persons, the power to take, and financial decisions is always reserved for tap-management only. Finance is that administrative area or set of administrative function in an organization which relates the arrangement of cash and credit so that organization may have the means to carry out its objects as satisfactory as possible. Howard and Upton Business finance income statement that business activity to the acquisition and conversion of capital funds in meeting the financial needs of overall object of enterprise. The above definition reveals that finance income statement that life hold of business organization finance income statement the key to all activities in business. The role of money has hardly altered a firm success or failure income statement depend upon how efficiency it income statement able to generate funds. It would not proper pass the entire credit to the business enterprise. It depends upon production money is the organization. "Financial management is an area of financial decision making, harmonizing

individual motives and enterprise goals". Finance defined as issuance of, distribution of and purchase of liability, and equity claim issued for the purpose of generating revenue for producing assets. Finance is the management affaire of the company. Money is life-blood at modern business. Money is required to purchase expensive machinery, and day-to-day expenses on raw materials, labor, and operational and administrative needs at business, execution at expansion plans and modernization programs are not possible without adequate finance. Thus, money can be described as the lifeblood at industries. In engineering jargon, finance is the oil that lubricants the huge machinery of the industrial sector.


Finance is the science of funds management. The general areas of finance are business finance, personal finance, and public finance. Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time, money, and risk and how they are interrelated. It also deals with how money is spent and budgeted.


Finance is said to be the life blood of an organization. Finance helps in the smooth running of an organization for example a business needs Finance to commence operation. Below are some reasons why finance is of great importance: As said before finance is important to start operation. Business needs to acquire machines and equipment thus there is a great need for finance. Since the market is becoming more and more competitive huge budget should be allocated for effective marketing

All businesses have to pay for electricity bills, bank charges, petrol, water supply etc these are called day to day expenses thus finance is important for the smooth running of the organization. In general, the term Finance is understood as provision of funds as and when needed. Finance is the essential requirement of every organization.

REQUIRED EVERYWHERE: All activities, be it production, marketing, human resources development, purchases and even research and development, depend on the adequate and timely availability of finance both for commencement and their smooth continuation to completion. Finance is regarded as the life-blood of every business enterprise.

EFFICIENT UTILIZATION MORE IMPORTANT: Finance function is the most important function of all business activities. The efficient management of business enterprise is closely linked with the efficient management of its finances. The need of finance starts with the setting up of business. Its growth and expansion require more funds. The funds have to be raised from various sources. The sources have to be selected keeping in relation to the implications, in particular, risk attached. Raising money alone is not important. Terms and conditions while raising money are more important. Cost of funds is an important element. Its utilization is rather more important. If funds are utilized properly, repayment would be possible and easier too.

Care has to be exercised to match the inflow and outflow of funds. Needless to say, profitability of any firm is dependent on its cost as well as its efficient utilization.


Finance function is the most important function of a business. Finance is, closely, connected with production, marketing and other activities. In the absence of finance, all these activities come to a halt. In fact, only with finance, a business activity can be commenced, continued and expanded. Finance exists everywhere, be it production, marketing, human resource development or undertaking research activity. Understanding the universality and importance of finance, finance manager is associated in modern business, in all activities as no activity can exist without funds. Financial Decisions or Finance Functions are closely inter-connected. All decisions mostly involve finance. When a decision involves finance, it is a financial decision in a business firm. In all the following financial areas of decision-making, the role of finance manager is vital. We can classify the finance functions or financial decisions into four major groups: (A) Investment Decision or Long-term Asset mix decision (B) Finance Decision or Capital mix decision (C) Liquidity Decision or Short-term asset mix decision (D) Dividend Decision or Profit allocation decision (A) INVESTMENT DECISION Investment decisions relate to selection of assets in which funds are to be invested by the firm. Investment alternatives are numerous. Resources are scarce and limited. They have to be rationed and discretely used. Investment decisions allocate and ration the resources among the competing investment alternatives or opportunities. The effort is to find out the projects, which are acceptable. Investment decisions relate to the total amount of assets to be held and their composition in the form of fixed and current assets. Both the factors influence the risk the organization is exposed to. The more important aspect is how the

investors perceive the risk. The investment decisions result in purchase of assets. Assets can be classified, under two broad categories: (i) Long-term investment decisions Long-term assets (ii) Short-term investment decisions Short-term assets LONG-TERM INVESTMENT DECISIONS: The long-term capital decisions are referred to as capital budgeting decisions, which relate to fixed assets. The fixed assets are long term, in nature. Basically, fixed assets create earnings to the firm. They give benefit in future. It is difficult to measure the benefits as future is uncertain. The investment decision is important not only for setting up new units but also for expansion of existing units. Decisions related to them are, generally, irreversible. Often, reversal of decisions results in substantial loss. When a brand new car is sold, even after a day of its purchase, still, buyer treats the vehicle as a secondhand car. The transaction, invariably, results in heavy loss for a short period of owning. So, the finance manager has to evaluate profitability of every investment proposal, carefully, before funds are committed to them. SHORT-TERM INVESTMENT DECISIONS: The short-term investment decisions are, generally, referred as working capital management. The finance manger has to allocate among cash and cash equivalents, receivables and inventories. Though these current assets do not, directly, contribute to the earnings, their existence is necessary for proper, efficient and optimum utilization of fixed assets. (B) FINANCE DECISION Once investment decision is made, the next step is how to raise finance for the concerned investment. Finance decision is concerned with the mix or composition of the sources of raising the funds required by the firm. In other words, it is related to the pattern of financing. In finance decision, the finance manager is required to determine the proportion of equity and debt, which is known as capital structure. There are two main sources of funds, shareholders funds (variable in the form of dividend) and borrowed funds (fixed interest bearing).These sources have their own peculiar characteristics. The key distinction lies in the fixed commitment. Borrowed funds are to be paid interest, irrespective of the profitability of the firm. Interest has to be paid, even if the firm incurs loss and this permanent obligation is not there with the funds raised from the shareholders. The borrowed funds are relatively cheaper compared to shareholders funds, however they carry risk. This risk is known as financial risk i.e. Risk of insolvency due to non-payment of interest or non-repayment of

borrowed capital. On the other hand, the shareholders funds are permanent source to the firm. The shareholders funds could be from equity shareholders or preference shareholders. Equity share capital is not repayable and does not have fixed commitment in the form of dividend. However, preference share capital has a fixed commitment, in the form of dividend and is redeemable, if they are redeemable preference shares. Bearing a few exceptions, every firm tries to employ both borrowed funds and shareholders funds to finance its activities. The employment of these funds, in combination, is known as financial leverage. Financial Leverage provides profitability, but carries risk. Without risk, there is no return. This is the case in every walk of life! When the return on capital employed (equity and borrowed funds) is greater than the rate of interest paid on the debt, shareholders return get magnified or increased. In period of inflation, this would be advantageous while it is a disadvantage or curse in times of recession. Return on equity (ignoring tax) is 20%, which is at the expense of debt as they get 7% interest only. In the normal course, equity would get a return of 15%. But they are enjoying 20% due to financing by a combination of debt and equity. The finance manager follows that combination of raising funds which is optimal mix of debt and equity. The optimal mix minimizes the risk and maximizes the wealth of shareholders. (C) LIQUIDITY DECISION Liquidity decision is concerned with the management of current assets. Basically, this is Working Capital Management. Working Capital Management is concerned with the management of current assets. It is concerned with short-term survival. Short term-survival is a prerequisite for long-term survival. When more funds are tied up in current assets, the firm would enjoy greater liquidity. In consequence, the firm would not experience any difficulty in making payment of debts, as and when they fall due. With excess liquidity, there would be no default in payments. So, here would be no threat of insolvency for failure of payments. However, funds have economic cost. Idle current assets do not earn anything. Higher liquidity is at the cost of profitability. Profitability would suffer with more idle funds. Investment in current assets affects the profitability, liquidity and risk. A proper balance must be maintained between liquidity and profitability of the firm. This is the key area where finance manager has to play significant role. The strategy is in ensuring a trade-off between liquidity and profitability. This is, indeed, a balancing act and continuous process. It is a continuous process as the conditions and requirements of business change, time to time. In accordance with the requirements of the firm, the liquidity has to vary and in consequence, the profitability changes. This is the major dimension of liquidity decision working capital

management. Working capital management is day to day problem to the finance manager. His skills of financial management are put to test, daily. (D) DIVIDEND DECISION Dividend decision is concerned with the amount of profits to be distributed and retained in the firm. DIVIDEND: The term dividend relates to the portion of profit, which is distributed to shareholders of the company. It is a reward or compensation to them for their investment made in the firm. The dividend can be declared from the current profits or accumulated profits. Which course should be followed dividend or retention? Normally, companies distribute certain amount in the form of dividend, in a stable manner, to meet the expectations of shareholders and balance is retained within the organization for expansion. If dividend is not distributed, there would be great dissatisfaction to the shareholders. Non-declaration of dividend affects the market price of equity shares, severely. One significant element in the dividend decision is, therefore, the dividend payout ratio i.e. what proportion of dividend is to be paid to the shareholders. The dividend decision depends on the preference of the equity shareholders and investment opportunities, available within the firm. A higher rate of dividend, beyond the market expectations, increases the market price of shares. However, it leaves a small amount in the form of retained earnings for expansion. The business that reinvests less will tend to grow slower. The other alternative is to raise funds in the market for expansion. It is not a desirable decision to retain all the profits for expansion, without distributing any amount in the form of dividend. There is no ready-made answer, how much is to be distributed and what portion is to be retained.




Cash Flow Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents






Rs. In Crore 31.88 71.25 69.54 -4.62 -2.92 31.36 28.44 50.09 79.64 81.10 -7.56 -9.02 28.44 19.42 68.74 100.8 5 -92.40 48.30 56.75 19.42 76.17 69.99 167.16 209.66 39.21 -3.29 76.17 72.88 93.09 162.36 240.39 39.95 -38.07 72.88 34.81


Sources of Working Capital

Long term

Short term

1. Issue of Share 2. Floating of Debenture 3. Ploughing back of profit 4. Loan 5. Public Deposit Internal


1. Depreciation 2. Taxation Provision 3. Accrued Expenses

1. Trade Credit 2. Credit Paper 3. Bank Credit 4. Customer Credit 5. Govt. Assistance 6. Loans from Directors 7. Security of Employees


INTRODUCTION: Working capital is one of the most fundamental measures of companys financial strength. If company possesses a significant value of liquid assets, it can easily fund its dayto-day business obligation. Working capital also provides insight on how efficiently a companys management able to oversee the company operation. The speed at which the company is able to manage its short term assets and short term liabilities is also crucial to its

business success. Keeping working capital level to the minimum required for efficient operation keeps cost down. This means controlling buying, handling, storing, and managing stock property. In simple terms, working capital refers to the cash a company. Requires in order to finance its day-to-day business operation or in other words, working capital refers to the amount of capital which is readily available to an organization. The term working capital is more an accounting term a management concept. There are two concept of working capital for the purpose of definition Gross Concept and Net Concept. Gross Concept refers to firms current assets. The firms total current assets are termed as gross working capital. Net Concept refers to current assets less current liabilities. That means, working capital is difference between resources in cash or readily convertible into cash (current assets) and organizational commitment for which cash will soon be required (current liabilities).

Working Capital = Current Assets Current Liabilities

Net Working Capital of Garden silk mills
Particulars 2006 2007 2008 Rs. Crore Current Assets Inventories Debtors Cash & Bank Balance Other Current Assets Loan & Advances Fixed Deposits Total Current Liabilities 2009 2010

97.08 48.45 10.27 155.80 137.71 18.17 311.68

130.03 64.74 5.41 200.18 145.19 14.01 359.38

185.76 107.90 21.75 315.41 157.82 54.41 527.64

217.55 67.47 12.50 297.52 204.37 60.38 562.27

365.36 126.87 10.04 502.27 223.02 24.77 750.06

Current Liabilities Provisions Total

140.81 13.99 154.80

139.35 22.54 161.89

169.54 30.69 200.23

225.04 38.76 263.80

395.11 56.03 451.14

Net Working Capital (C.A.-C.L.)







For many business firms, inventory is one of the visible and tangible of doing business. Raw materials, work in process and finished goods all represent various form of inventory. In simple words, inventory refers to stocks of good necessary to do business. In fact, for a business firm, inventory is both an assets and a liability. Too much inventory consumes physical space, causes of financial burden, and increasing the possibility of damage, spoilage and loss. On the other hand, too little inventory disrupts manufacturing operations, engenders chaos on the shop floor, poor customer service.


This is very important system, because it helps to control the misuse of R.M. The purchase manager daily takes the report of raw-material. He daily checks the opening balance and closing balance of various R.M At the end of the every day the report is send to the purchase manager by the store manager. The format of this kind of report is as follow:-







Gross Profit Ratio = Gross Profit * 100 Sales

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Gross Profit 120.35 159.16 183.17 162.25 238.40

Sales 953.26 1393.80 1675.20 1332.27 2507.30

Ratio 12.62% 11.42% 10.93% 12.18% 9.51%

% change ----9.51% -4.29% 11.44% -21.92

Interpretation: As from the above table you can see that the difference between 2008-2009 is more and in 2009 the company was at good position and in 2010 the gross profit ratio again goes down

Operating Ration = C.O.G.S + Operating Exp. * 100 Net Sales

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

C.O.G.S + Net Sales Operating exp. 915.99 1327.91 1600.62 1242.71 2362.92 953.26 1393.80 1675.20 1332.27 2507.30

Ratio 96.09% 95.27% 95.55% 93.28% 94.24%

% Change ---0.85% 0.29% -2.38 1.03%

Interpretation: According to above table the year 2009 was a more profitable year compared to other 3 years. Because in this the company expenditure was less than compare to other 3 years.

Expense Ratio = Expense * 100 Sales

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Expense 848.20 1272.61 1542.70 1184 2339.71

Sales 953.26 1393.80 1675.20 1332.27 2507.30

Ratio 88.98% 91.30% 92.09% 88.87% 93.31%

% Change --2.61% 0.86% -3.50% 5%

Interpretation: From the above table you can see that in the year 2009 the company got less expenses rather than other years.

Net Profit Ratio = Net Profit * 100 Sales

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Net Profit 22.10 23.26 40 49.58 63.20

Sales 953.26 1393.80 1675.20 1332.27 2507.30

Ratio 2.31% 1.66% 2.38% 3.72% 2.53%

% Change ---28.19% 43.37% 56.30% -31.99%

Interpretation: From the above table you can see that in year 2009 the company got good profit and suddenly in 2010 it went down.

Return on Capital Employed = NPBT * 100 Networth + Long Term Loan



Networth + Long Term Loan 342.43 358.97 392.26 435.20 490.29


% Change

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

127.44 165.18 190.38 170.55 252.98

37.22% 46.01% 48.53% 39.20% 51.60%

--23.62% 5.48% -19.22% 31.63%

Interpretation: From the above table you can see that in the year 2010 the company got more return on their capital employed.

Return on Shareholders Fund = Net Profit * 100 Share Cap. + Reserves

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Net Profit 22.10 23.26 40 49.58 63.20

Share Cap. + Res. 342.43 358.97 392.26 435.12 490.29

Ratio 6.45% 6.47% 10.19% 11.39% 12.89%

% Change --0.31% 57.50% 11.78% 13.17%

Interpretation: From the above table you can see that in the year 2008 the company got more return on the shareholders fund in compare to other 3 years.

Return on Equity Share Cap. = Net Profit Pref. Div * 100 Equity Share Cap.

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Net Profit Pref. Div. 22.10 23.26 40 49.58 63.20

Equity Share Cap. 38.29 38.29 38.29 38.29 38.29

Ratio 57.72% 60.74% 104.46% 129.48% 165.05%

% Change --5.23% 71.98% 23.95% 28.47%

Interpretation: From the above table you can see that the company got more return on their equity share capital in the year 2008.

Earning Per Share = Net Profit Pref. Div. No. Of Equity Share

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Net Profit Pref. Div. 221000000 232600000 400000000 495800000 632000000

No. Of Equity Share 38290000 38290000 38290000 38290000 38290000

Ratio (Rs.) 5.34 6.07 10.45 13.25 16.43

% Change --13.11% 72.16% 26.79% 24%

Interpretation: From the above table you can see that in the year 2008, it got a nice profit on their shares rather than other 3 years.

Current Ratio = Current Assets Current Liabilities

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Current Assets 311.68 359.38 527.64 562.27 750.06

Current Liabilities 154.80 161.89 200.23 263.80 451.14

Ratio 2.01:1 2.22:1 2.63:1 2.13:1 1.66:1

% Change --10.45% 18.47% -19.01% -22.06%

Interpretation: From the above table you can see that the current ration of first 2 year is up and the current ration for last 2 years are down.

Liquid Ratio = Liquid Assets Liquid Liabilities

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Liquid Assets 214.6 229.35 341.88 344.72 384.7

Liquid Liabilities 154.80 161.89 200.23 263.80 451.14

Ratio 1.38:1 1.41:1 1.70:1 1.30:1 0.85:1

% Change --2.17% 20.57% -23.53% -34.61%

Interpretation: From the above table you can see that the liquid ratio for the first 2 year is up and the liquid ratio for the last 2 years are down.

Proprietary Ratio = Proprietors Funds * 100 Total Assets

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Proprietors Funds 342.43 358.97 392.26 435.12 490.29

Total Assets 981.5 1049.99 1194.39 1339.09 1518.22

Ratio 34.89% 34.19% 32.84% 32.49% 32,29%

% Change ---2.01% -3.95% -1.06% -0.61%

Interpretation: From the above table you can see that the difference between 2007, 2008, 2009 are more than the year 2010.

Total Assets Turnover =

Sales Total Assets

Year 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Sales 953.26 1393.8 1675.2 1332.27 2507.3

Total Assets 981.5 1049.99 1194.39 1339.09 1518.22

Ratio 0.97:1 1.33:1 1.4:1 0.99:1 1.65:1

% Change --37.11% 5.26% -29.28% 66.67%

Interpretation: From the above table you can see that the total assets turnover is more in the year 2010 and there is a big difference between 2009-2010.


Share Price for the Year 2001-to-2010 Year Open(Rs.) Close(Rs.) Avg.(Rs.) 2001 7.75 11.8 9.77 2002 11.8 30.5 21.15 2003 30.5 68 49.25 2004 68 65.8 67 2005 65.8 63.75 64.77 2006 63.75 56.55 60.15 2007 56.55 119 87.77 2008 119 35.3 77.15 2009 35.3 78.2 56.75 2010 78.2 122.7 5 100.4 7


Company Textiles Weaving



Share Holding No. Of Share % 55.95 0.04 1.90 0.01 0.02 10.53 9.12 21.74 0.65

Promoters Mutual Funds & UTI Banks, Financial Institutions & Insurance Companies FIIs Foreign Financial Institutions Private Bodies Corporate NRIs Indian Public Shares underlying GDRs Others: Clearing Members Trust Total

21423976 13800 731455 2625 6190 4030637 3492586 8324487 249325

14959 520 38290560

0.04 0 100


Vision & Mission of the Garden Silk Mills

Vision of the Garden Silk Mills: Vision is to manufacture product as par international standards and compete international textile industries.

Mission of the Garden Silk Mills: Customer satisfaction is there ultimate mission.


Organization planning Human Resource Planning Job Analysis Job Description Job Specification

Acquisition of human resource Managing performance motivational activities training and Development Compensation and Benefits Health and safety provision organization Development encouraging participation in management Grievance procedure etc.


HRP is the process of forecasting an organizations future demand for, and supply of, the right type of people in the right number. HRP facilitates the realization of the companys objectives by providing the right number of personnels.

HRP Process

Forecasting refers to the estimates of the future demand of the employee. This can be done by some analysis. And to do analysis it considers some factors. There are mainly two factors which are as follows:1. External factors. 2. Internal factors.

1. EXTERNAL FACTORS. A). POLITICAL, LEGAL, SOCIAL AND THE TECHNICAL CHANGES. The demand for certain categories of employees and skills is also influenced by changes in political, legal and social structure of an economy. In the Garden Company, it has appointed the technicians and engineers during the last couple of years by taking into consideration the latest technology in construction, software etc. the company considers technology as a doubled-edged weapon. So, as a when the technology changes, the company will also recruit new technicians & engineers to cope with the technology. B). COMPETITION. Garden company is operating in a field where a large number of players are bent while cutting each others throat. In order to stay in a competitive market, the company has to LEAN by reducing their workforce. The company is planning better workforce as competition has so much increased in the market. On the other hand, the company is doing well and also progressing smoothly so it will always look for people with critical skills.

2. INTERNAL FACTORS. A). ORGANIZATIONAL DECISIONS. In planning H.R., the company undertakes the strategic plan; it takes into consideration the sales and the production forecasts. The company is expecting higher demand of textured yarn and for this, the company has planned long-term plan. Moreover, the company is in search of people possessing requisite skills in next couple of years.

B). WORKFORCE FACTORS. The demand for new job occurs because of retrenchments transactions, resignations, deaths and leaves or absence. The Garden behaves that due to past experience the rate of occurrence of all these actions by employees are partly predictable. C). FORECASTING TECHNIQUES. The manpower forecasting techniques employed by the Garden Company are described below a. Experts forecasting: In the Garden Company, managers estimate future human resource requirements. Sometimes, the company also appoints the experts to forecast human resources along with the managers experience and judgments which gives the good effect. b. Trend Analysis : The Garden company is deciding or forecasting its H.R. needs through projecting past trends. Past rates of change can be projected into the future or employment growth can be estimated by its relationship with a particular index.


It is process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and end when their applicants are admitted. The result is pool of applications from which new employee are selected Recruitment is an important part of an organizations human resource planning and their competitive strength. Competent human resources at the right positions in the organization are a vital resource and can be a core competency or a strategic advantage for it. The objective of the recruitment process is to obtain the number and quality of employees that can be selected in order to help the organization to achieve its goals and objectives. With the same objective, recruitment helps to create a pool of prospective employees for the organization so that the management can select the right candidate for the right job from this pool. Recruitment acts as a link between the employers and the job seekers and ensures the placement of right candidate at the right place at the right time. Using and following the right recruitment processes can facilitate the selection of the best candidates for the organization.

In this is competitive global world and increasing flexibility in the Labour market, recruitment is becoming more and more important in every business. Therefore, recruitment serves as the first step in fulfilling the needs of organizations for a competitive, motivated and flexible human resource that can help achieve its objectives After deciding number and type of people required for organization need through HRP and job analysis and job design specified the task and duty of jobs and qualification expected from prospective job holders. After that as per recruitment can be done but before that following factor can be under taken.

1. INTERNAL FACTORS: Requirement policy HRP strategic Size of the organization and number of employees Cost involve in recruiting employee Growth and expansion plan of the organization

2. EXTERNAL FACTOR: Supply and demand of specific skills in the Labour market. Political and legal consideration such as reservation of jobs for SCs, and so on. HRP and job analysis determine requirement and selection needs.

Recruitment Process


RECRUITMENT PLANNING : a. b. number of contact type of contact

STRATEGY DEVOLVEMENT : Make or buy Make (hire less skilled worker) Buy (hire skilled labors and professional)

Technological sophistication or method used to reduce in recruitment. Where to look or reduce costs. How to look or source of recruitment Internal External INTERNAL RECRUITMENT : Present employees promotion Employee referrals or employee families and friends Former employees or some retired employees Previous applicants

EXTERNAL RECRUITMENT : Professional or tread association Advertisement in news paper Employment expanse Campus recruitment Consultancy

SEARCHING : Source activation Selling

SCREENINGS : Application received in response from advertisement is screened and only eligible applicants are called for an interview. The reason is reduce that application that is visibly unqualified for the job and to save time and money.

EVALUATION AND CONTROL : Evaluation and control is necessary as considerable costs are incurred in the recruitment process.


Preliminary Interview

Selection Test

Employment Interview


Reference and Background analysis

Selection decision

Physical Examination

Job Offer


In short first of all recruitment can be done through internal and external sources and after out of them selection on the basis of some criteria can be done then finally to offer job to selected employee. First of all temporary job can be offer then after training given to employees during these induction program can be done through this new employee introduce with company and other detail of company given to new employee then training given and then after probation basis job offer i.e. part of temporary job with some condition can be offered.


FOR MANAGER & SUPERVISOR : Managers possessing textile or production degree are employed to respective jobs in beginning the salary is Rs.4500/-

Employment Contract

FOR TEMPORARY STAFF : In the temporary Staff level science gradates or diploma in engineering filed are selected their salary is Rs.3500/- at the beginning.

FOR LABOR : There is no need to any educational criteria for the Labour job in this job has experience and skill for the work their wages is given to them according to their daily wage system.


In GARDEN Company there are not so much document are kept of the recruitment and selection. In GARDEN they dont do this process on big scale. So, there are not so many documents are kept.

But some document names are as follows: List of applicant according to different types of job. Ranking of applicants on the basis of their qualifications. List of the applicant who will be called for interview. List of the rejected applicant for the future use. List of the applicants who are selected for job.

Sources of Recruitment


Recruitment is positive in nature because it attracts as many as possible applicants. The Garden Company is recruiting people by using three methods. They are as follows:A. INTERNAL METHODS B. DIRECT METHODS C. INDIRECT METHODS

A. INTERNAL METHODS Internal methods means to recruit the employee from with in the company, some internal methods are as follows:


1. PROMOTIONS AND TRANSFERS. : This method is used to fill the vacancies from within the organizations through promotions and transfers. Sometimes, when vacancies arise the company recruits people from within the organization. It is done in 2 ways: Either by giving promotion or by giving transfer. The company is following the promotion system rather than transfer. The company gives promotion to the employees from lower level to higher level. As per the industrial act, if a person remains on such rolls for 240 days or more, he will get a status of permanent employee, and he is also entitled to all relevant benefits, including provident fund, retrenchment and compensation.

2. JOB POSTING : This is the way used by Garden Company to hire people from within the organization. Under this, the company publishes job openings on bulletins, boards, electronic media and other similar outlets. The main aim of the company is to use this method because it offers a change to highly qualified applicants working within the company to look for growth opportunities within the company without looking for green pastures outside.


1. CAMPUS RECRUITMENT. The company is not much using this method of recruitment. Under this method, the managers of the company visit the college campus and their placement centers. This method is not used by the company because there are more disadvantages rather than the advantages. The main disadvantage is that campus recruitment can be costly for the company. The reason behind this is that the expenses of welfare boarding and lodging expense of recruits.

C. INDIRECT METHODS. The indirect method consists of the advertisements in the newspapers, information written on the notice board of the required employee etc

Garden Silk Mills follows these two methods for recruitment: 1. Internal Methods. 2. Indirect Methods.


Every individual who is selected for the job needs the training. Without getting training it is not easy for the individual to perform the job accurately and the precisely. He should be given at least the basic knowledge with the help of which he can carry out his work. Therefore, training is a must for each and every employee working in the organization. It helps the employees to get the basic facts of their jobs and the working environment under which they are supposed to perform their duties. Briefly , we can say that,

Training is the process of increasing the knowledge and Organized procedure by which people get the knowledge and develop certain skills for a definite purpose.

The purpose of training is basically to bridge the gap between job requirements and present competence of an employee. Training is aimed at improving the behavior and performance of a person. It is a never ending process. Training is closely related to education and development but needs to be differentiated from these terms.

The Garden Company gives training to the employees who needs after their work have been examined. And also the training is given to those who are new in the organization. So the company gives training not to all but the few of its employees. The company gives the training for about 1 year. The employees are observed by the senior officers.

As per the rule of the government a person has to undergo training at the Indian Institute of Training. Here he is supposed to do training for 2 years and then with the company apprentice for 1 year.


Induction means to receive and welcome the new employee when he first join the company and also give some basic information of the company to the employee, so he starts his work soon and he also aware about the companys environment as soon as possible

GARDEN too provides Induction. Some reasons for that are as follows:1. Workers become aware of companys environment. 2. The fear can be removed. 3. Workers become aware about the companys rules and regulations. 4. He came to know about the location of various plant and machinery. To receive induction it is very valuable for workers


To improve knowledge & skill. To develop attitude & behavior. Reduced cost, accident and mistake. Increase efficiency To increase productivity Imparting information on new technology and methodology. To maintain industrial relation.


The following tools & materials are imparted for, facility required for imparting training.

Training room/Seminar room. Board, Chair, OHP (Over Head Project) Television, VCR, CD Player Automatic slide projector Computer with multimedia facility Video projector demonstration for technical guidance.


Promotion means an improvement in pay, prestige, position & responsibility of an employee within his or her organization.

In promotion the salary of the workers is raised according to his efficiency. In Garden Silk, the promotion is given on seniority basis. Some of the factors which influence the promotion are his past records, persons behavior, his interview report, job knowledge etc. Garden follows the seniority basis for promotion because the seniors are usually more experienced and young people may gain more knowledge, expertise, skills etc under seniors guidance.

The purposes for promotion are mentioned below: To motivate employees to higher productivity To attract and retain the services of qualified and competent people To identify and reward the efficiency of the employees

To fill up higher vacancies from within the organization To build loyalty, morale and a sense of belongingness in the employee


HORIZONTAL PROMOTION It increases the responsibilities and pay with a change in designation but the person

does not transgress job classification. For eg; head-clerk from clerk VERTICAL PROMOTION It results in greater responsibility, prestige, along with the increase in change in the nature of the job. DRY PROMOTION Dry promotion means sometimes increase in remuneration or better designation but the responsibilities is not changed. The promoted sometimes may be given increments annually or semi- annually. pay and a


A demotion is a reduction in rank, often accompanied with a lower pay status. There are many situations in which a demotion might occur; any kind of ranked system like a

police department or military, for example, uses demotions as a disciplinary tool, while some employees are at risk of demotion due to reorganization or substandard work. Most people view a demotion as a punishment, since it implies that the individual was incapable of performing at a higher rank, and the opposite of a demotion is a promotion, an elevation in rank or status. Most commonly, a demotion occurs when someone fails to perform as expected. This failure may not be severe enough to be punished with employment termination, but it does require a rethinking of the employee's job responsibilities and functions. When someone is demoted, he or she may be demoted within a department or outside it, depending on company needs. Being demoted in a department can be awkward, as the employee's coworkers will be well aware of his or her fall from grace


In Garden increment is given on the basis of Performance Appraisal. Staff is given 4 Grades: A, B, C, D and on the basis of grades increments are given. For eg; For Grade A maximum increment is given, B is given lesser than A, C is given lesser than AB and D is given the least increment.


Performance appraisal can be defined as the process of systematic, periodic and impartial estimating the value excellence, qualities and thereby evaluating the performance of a person in terms of requirement of the job for which he is employed.

The management uses the performance appraisal results for promotion and transfer, identifying training and development needs. Management has established some performance standards upon which the appraisal is done. In the Garden Company the appraisal is done after every 6 months by the head of the department and the results are conveyed to the respective workers.



The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals & objectives. The standards set should be clear, easily understandable and in measurable terms.


Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees.


The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.


The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance.


The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.


The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.


Wages represent the hourly rates of pay and salary refers to the monthly rate of pay, irrespective of the number of hours put in by an employee. Wages and salaries are subject to annual increment. The wages differ from employee to employee and it also depends on the nature of the job, seniority and merits. On the other hand we can define salary as the amount of money paid to an employee monthly or yearly. Currently 4500 employees are working at Garden Silk Mills Ltd. The salary structure is as follows:-

Temporary Employee Probation Employee Permanent Employee

Rs2500 & other incentives Rs3500 & other incentives Rs5000 & other incentives

The government decides the minimum wage payment and as per the law all the companies has to pay the above mentioned minimum wage to its employees.

THE PATTERN OF PAY SLIP: Name and code of the employee Slip no. Provident Fund Employye State Insurance

Attendance Leave Absent Pay days Rate basic & HRA

Personal Tax LIC Income Tax Cash Advances Mobile Charges

Two copies of the pay slip are maintained. One is given to the employee and the other is kept by the company for its records. The attendance of the employees is taken everyday. The company gives attendance card to each of its employees and makes a register in order to keep records of the employees. When the employee enters into the company he signs in the register and when he leaves again do the same procedure and so in this way, the records are maintained.


Incentives are payment plans which provide encouragement by extra payment over and above regular time rated remuneration for the extra performance. To get desired or targeted result, organization can provide extra remuneration for better performance of employees. In other words, an incentive scheme is a plan or programmers to motive individuals or group performance. Garden Silk Mills Pvt. Ltd. and other company also use certain incentives to motivate its employees. Motivation means to force a person and involve him to complete the work in right time and place with help by providing a basic need or special need to worker. Especially Maslows need hierarchy used to motivate employees such as basic need, special need, safety need, recognize, identify, self realization. Extra salary is one such type of incentive which is given to those employees who show sincerity and regularity throughout the year in their work. Salary is vital factor to motivate employees. Safety need is also used to complete the work. Other motivational

factors are: Good Organizational Culture, Grievance Handling System, No Rigidness, Certificates, Promotion Letters etc. based on some fixed criteria.

PERSONALITY:There are certain qualities of good personality such as out look, communication, nature, presentation, good behavior, positive attitude.

LOOK: The person in a formal dress. In proper hair style, clean shoes. In case of mail, plain & light shirt and dark pent. Other factors that adds flavors to look.

COMMUNICATION:Communication is a mature process; we find communication not only between human being but also between in animal. Communication means express words and ideas of the one person to other in a way that the person can understood clearly and easily. This can be done in three ways.

VERBAL:Here selection of correct word is most essential factor because verbal communication means express ideas in word by speaking.


Written communication means one can present his view form of written point and points clearly understood by other person. One can add sketch/pictures with text to support own view & create a clear picture of the idea.

GESTURE:Gesture communication means one can express idea through body language. Body language should be perfect and well balanced. To make communication be perfect by whom, what, why, when, where & how added while receiving and giving any instruction. It should be maintained to make communication perfect and confusion less and misunderstanding less.

NATURE:Nature of a person should a person should be balanced not too rigid or to flexible so as to tackle situation smoothly.

GOOD BEHAVIOR:Behavior of one person doesnt put others in trouble or should hurt others by means of word or action.

POSITIVE ATTITUDE & THINKING:Positive attitude and thinking of a person will add up to personality.


CANTEEN FACILITY It is providing employees the facility of break fast, lunch and dinner at the reasonable prices. REST ROOM The rest room facility is given to the workers to take rest during the lunch time and even during the free time. UNIFORMS The workers are given the uniform which they are supposed to wear during the office hours. SHOES AND RAINCOATS All the employees and the workers of the company are given the shoes and raincoats during the monsoon. FIRST AID FACILITY It is given for quick remedy of employees, when any accident occurs during the working hours of the organization. SCHOLARSHIP Company provides the scholarship to the workers and the employees to those who study for the company as a trainee. TRANSPORTATION (BUS) FACILITY

The company also provides the bus facility for the workers from Vareli to bela mills and even from Jolwa to silk mills for to and fro of the workers.


Transport facilities are available for SURAT addressee to all staff and workers and some contractors Labour Gratuity is given for 15 days for each year worked if completed 05 years Med claim is provided to the staff with family approx between 25k to 85k and single staff is provided med claim up to 15k. Probation is provided for 6 months to experience employees and 1 year to the others. Confirmation letter is issued upon the assessment on completion of probation period. The retirement age of the employees is 58 years. There are total 4 shifts and timing of which are as follows:Shift A 07:00 am to 03:00 pm Shift B 03:00 pm to 11:00 pm Shift C 11:00 pm to 07:00 am General Shift 09:30 am to 06:30 pm The timing for Saturday is 09:30 am to 03:00 pm.

The car policy is provided to the managers and other senior officers of the company on selective basis, the company provided 52% of the total policy and 48% is of self.

The increment is provided to the staff in April and to the workers in January. Housing to seniors (Top Management).


Labour relations are concerned with the relationship between management and workers. In Garden Silk Mills Ltd., the Labour relations have been maintained very nicely. It is important for the company to maintain good relations with the Labour otherwise the company cannot come on the position where it is now.

Mr. Naised Desai is the leader of the Labour union of GARDEN SILK MILLS LTD.


Textile industries have two trade unions 1. SURAT silk mills Labour unions 2. Bombay industrial relations act

Generally the employee of the company is not interested in any of the above mentioned trade unions but if any disputes arises and the matter goes to the court than the employee takes the help of the SURAT silk mills Labour unions.



To take some knowledge about the production activities done in the GARDEN SILK MILLS, We have visited the production plan at the JOLWA Village. At that we ask them that which kind of activities they carry out. So, they give us the all the detail of their activity.

In JOLWA plant they produce POY (Partially Oriented Yarn). As we know that for the production of the goods the Production Department has to depend on the Marketing Department. They produce only those quantities which are demanded by the Marketing people.

So, some activities done in the Production Department are as follows:--

1. Production manager gathered the information about what to produce and in what quantity. This information must be collected from the Marketing Department. Marketing Department collects information by analysis the market and gives data to Production Department. 2. After receiving information about in what quantity produce, the production manager now does the arrangement of the raw-material. In Garden the R.M is the POY chips which is made from the D.M.T. and E.G. 3. After doing the arrangement of the R.M. the manager starts the production of POY. 4. When the production getting finished the manager check the quality of the all the POY. 5. After checking the goods they packed it in safe boxes. Then the boxes are kept in warehouses. Then as per the dispatch order given by the Marketing Department the Dispatch Manager dispatch the order and send it by trucks.



Purchase procedure is a very important part in the big company. For production they need R.M. and to purchase the R.M and other item there is a special purchase procedure that all the company follows. In GARDEN there is also a separate purchase department who always take care about the purchase decision in the company. In this company some purchase activity done by purchase department are as follows. Purchase of R.M Purchase of chemicals like spin-finished oil, Lubricants etc Purchase of new imported material. Purchase of capital goods. Purchase of new machinery. The purchase procedure starts when the need of purchase arises.


1. The production manager informs to the purchase manager about the need of the Raw Material, some machinery and equipment etc. 2. The purchase manager receives the data and checks whether the demand wrong. 3. After checking the quality and quantity required by production manager, the purchase manager will do inquiry about the potential suppliers. 4. After finding the supplier the purchase manager will send him an inquiry letter and ask for quotation. is right or

5. In response to the letter the supplier will also give letter related to the price of the goods and other condition. 6. After receiving the letter the manager will compare the quotation of the entire supplier. They will compare the quotation in respect to the unit price of goods, credit policy, and other terms & condition of the supplier. 7. After comparison they finalize the best supplier and then the manager personally checks product quality and if he is satisfies then he places order. 8. After giving order, supplier has to supply it within the given time-period.

So, above are some steps which are generally followed by the purchase manager of the company to purchase Raw Materials, other equipments etc.



This is the letter which is send by the purchase manager to suppliers. If the means of communication is written then the purchase manager can have the proof. But if the means of communication is telephonic then their can be no proof. And if the communication is done by e-mail then their will be definite proof. 2. RESPONSE LETTER.

This letter is given by the supplier to purchase manager. This is the letter in response to the inquiry letter. This letter is in the form of quotation. Which contain the price of the goods that manager have asked and also other information.


This is the statement which is prepared by the purchase manager. After receiving the quotation from the supplier the manager will prepare this kind of comparison statement. This statement contains the comparison between all suppliers. And on the basis of this they will decide whether to select the particular supplier or not.


It may be defined as the equipment which controls internal movement of material, from receipt, through storage and production and up to the shipment of finished product.

Material handling equipments are very useful in the big company. This equipment is widely used in company. In GARDEN they use those types of equipments, which are helpful to them in the safe movement of their material.

Material Handling Equipments of Garden Silk Mills:- Pipelines. Trolleys. Fork Lifts. Pallets. Hydraulic Machines. Plastic Bags. Boxes. PIPELINES

Pipelines are the very important part in the manufacturing company. It is very useful for the flow of the water, gas, air, chemical, and raw-material.

In GARDEN they also use the pipelines for such kind of use. They mainly use pipelines for the flow of R.M. in the production process. They also use pipelines for the flow of air and liquid material.


Trolleys are mainly use for the transfer of goods from one place to another place. We also use trolley at our home. In this way it is also used at the company. In GARDEN they also use such kind of trolley. This trolley is use for the transfer of POY bobbin from one place to another. The trolley capacity is 24-36 rolls. In GARDEN they have approximately 900 to 1000 trolleys. As shown in the image the POY bobbins are kept in the stand which is fitted on the trolley.


Fork Lifts is very useful and very capable equipment. This is use to carry the very big or the jumbo boxes. These boxes are very big and heavy, so that it cant be handling manually. So thats why the fork lifts are being used. This lifts can carry the boxes up to the height of 2 mts. This is use to load the boxes in to the truck. This lifts use diesel as fuel. We can see in the both image that, in the 1 st image its shows the lifts and in the 2 nd image it shows how this fork lifts work. PALLETS Pallets are also very useful equipments. This is useful to carry the jumbo box on it. As we know that jumbo box cant be handling manually, so these pallets are use. Pallets are made of plastic & wood. We can see the diagram of pallets. In the 1st image we can see different size of pallets and in the 2nd image we can see how the boxes are kept on pallets. These pallets are handled with the help of the Fork lifts.

The supplies of box are done on pallets. Once the buyer gets his order he gives back these pallets to the company. In GARDEN they use the pallets made of wood.


This machines capacity is about 2000-3000 kgs. This equipment is used to carry the jumbo boxes. The jumbo boxes cant be carried manually, so because of that this kind of equipment is being used. It helps to make the dispatch of finished goods faster.

There are also some other things that can be used for material handling. These we cant say the equipment but it helps a lot to save the goods. These are as follows. Plastic Bags. Boxes. ( Small and Jumbo)


Different techniques, such as weaving, printing, dying, shrouding, packing etc. are used in the production process. Yarn is chief raw material of the company. It is not manufactured at the plant of Vareli but is manufactured for looms at Jolva. Process of production can be described as below: OBTAINING THE RAW MATERIAL STORING RAW MATERIAL TWISTING THE YARN TEXTURISING OR CRIMPING THE YARN DRAW WARPING SIZING WEAVING DYING AND PRINTING OBTAINING THE RAW MATERIAL :The raw material consumed by the company is Partially Oriented Yarn (POY). The yarn is procured from both internal and external sources. INTERNAL SOURCES:Internal sources of the company comprise the manufacturing plant of Jolva and material purchase from Surat Textile Mills (STM), Which is under the Garden Group of Company. Vareli plant also acquires raw material from Surat Textile Mills. EXTERNAL SOURCES:-

In the peak season, if the internal sources are unable to meet the demand, the company also procures material from external sources like Modern, Indo-Rama, and Reliance etc. STORING THE RAW MATERIAL :-

All the raw material needed by the various departments is purchased together and maintained in the storage area called Dump Store from where any department can access the required amount of raw material.


Parcel oriented yarn is either twisted, according to the requirements of material consumed in production.

Process of twisting: machine. The winding of yarn is done on the winding machine.

a) Winding on bobbins: firstly POY is wound on bobbins, which are twisted on the twisting b) Twisting machine: the POY wound on the bobbins is then tittled on the twisting machine. On which the yarn is twisted. In this process, first the yarn is passed through spindles on which the yarn is twisted in both the opposite directions

One for one twisting machine: in this machine, the yarn is twisted once for revolution. Two for one twisting machine: in this machine, there are two twisters per one revolution. Now days, TFOs are more widely used as they are quicker and offer a better quality.

Fancy Twister: the yarn before twisting is not very strong and breaks easily. It is twisted in order to increase its strength. Due to twisting, quality improves and hence production also increases.

TEXTURISING OR CRIMPING THE YARN: the POY is accessed from the dump store to the crimping or texturizing section to texturizing it. Denier is unit for

measurement of POY. Those 9000 units of yarn are hanker and weighted in Gms, are called one denier. It is decreased after crimping.

Process of Crimping: Firstly, POY is put on machine in a specific amount. The place is called CRILL where it is put. After the first delivery, the yarn is heated. Then it is passed through cooling plate. After that, the yarn is passed through spindle assembly. Thereafter, it is passed through boiler and at all it is taken up. This is what the crimping to Texturizing process is. There are two ways for punching the yarn.
I. Raito-punched or bound II.Crime-not punched

Types of crimping machine:

Friction type Magnetic type

DRAW WARPING:The POY is put directly on the Machine from the dump stove to draw warped process. Its the fully automatic system from the warping system. The process of drawing heat setting and intermingling is carried out. It is given tension and then wound on beam. SIZING:Sizing is a process of saving of yarn. The raw material for sizing is accessed either from dump store, warp raw section or from texturising department. A beam is made at the beginning in the process on this department. Warp yarn i.e. Vertical threads are made

A. WARPING. B. CHEMICAL PROCESSES: - Yarn is passed through a chemical called polyvinyl alcohol to find and arcyrize shining.

C. WAXING: - Where the yarn is waxed. D. SIZING: - Sizing is made in this process which involves many chemicals as well as heading of cobbling processes. E. BEAMING: - Yarn is wound on a bean after sizing. Sizing which mean saving of yarn is necessary because of regular wear and tear. WEAVING:After making the process of twisting camping, sizing or drawing warp, the yarn is rent to the weaving department. In grey cloth is manufactured through the process of weaving in this process one thread is horizontal and other is vertical. Horizontal thread is called Weft and the vertical thread is called Warp.

There are various types of looms on which the cloth is woven:1. SEMI AUTOMATIC LOOMS. 2. WATER JET LOOMS 3. FULLY AUTOMATIC LOOMS. It is notable that the production of grey cloth is 70000 mts/day and it increases every year. DYEING AND PRINTING:This is the lent step of the process of production department in the company. PROCESS:The jet dyeing process is widely used for dying the grey cloth. It is dyed printed according to the requirement of design and colors. A. First of all the grey cloth is washed and dyed, whichever color is necessitated. The

Company dyes 9000mts of cloth daily. B. The second step involves putting the dyed cloth in the drum washer to give crepe and

georgette crease effect along with washing the stains. C. The super wash machine is used for finishing and washing white color material. D. Salvage or border outing machine is used for border cutting of the cloth.



The Company follows the following slogan to show their quality preference


Company has adopted following points as a part of their quality policy:-

Satisfying customers need and expectation. Striving for continuous improvements through implementation of ISO 9001:2000.

Establishing, Communicating and Reviewing measurable quality objections. Developing and improving employee skills through effective training. Maintaining safe working practices.


In GARDEN (JOLWA) there is a separate quality control department this department is besides of the production department. They check the quality of the R.M and Finished goods both. Their quality policy is to satisfy the customer at maximum level. The company has appointed many engineers who always take care about quality.


To make the POY the major R.M is POY chips and spin-finished oil. In GARDEN they always check the quality of this both. If they found any bad quality then they will keep it aside. They also safely load the material in to the machine.

Once the POY made they also check the quality of it. They check the quality of the entire POY bobbin. They take the sample from the each and every bobbin and then they make the sample cloth from it. Then they dyed and print that cloth. And if there is any mistake then they tell to production manager to solve it. If the quality is good then they put the symbol of OK tested and then they pack that material. They also check the denier and also the filament of the POY. The checking of denier is done with the help of the machine called Rap Reel Machine. And the checking of filament is done by computerized system.


In GARDEN they have also the system of checking the quality of goods when it is in progress. The experts keep their eye on the every activity of the machine. They check the every activity of machine. They have the computerized system in which they can easily know in which machine the problem is occurs. And then they solve it.


Maintenance is very important and necessary. In some company they use corrective maintenance or in some company they do regular maintenance. In GARDEN (JOLWA) they use the regular maintenance system. They do maintenance at every week. The maintenance officer checks all the parts of the machinery at every week. And in between if any problem occurs they suddenly try to solve it.

There are 60 workers in design department under the direct control of the Chairman and M.D. and it is based at Surat with the assistance of CAD/CAN equipment, the department aims to produce up to 200 designs each month. Each design is available with number of different colors. These new designs are marketed for testing through selected dealers and depots, which is a contributory factor to a superficially high product return at 12 %. If the design fails to attract the customers, they are sold in spot sales of the company.


For POY the process is the fully automatic. Once we have to input RM in to plant, then the output is the POY Bobbins. So, for this we have given process layout as follows:


Fully OUTPUT OF Automatic POY

POY CHIPS + Spin-finished Oil.


Production capacity(mt per annum)

Additional capacity expansion in 2010

Total capacity after expansion(mt per annum)

Polyester chips Poy spinnimg Fdy spinning Draw warping Draw twisting Draw winding Draw texturising Fabric(million mtrs per annum)

2,80,000 1,20,000 3,500 14,400 21,000 6,000 43,000 60

2,52,000 29,000 25,000 36,000 -

5,32,000 1,49,000 28,500 14,400 21,000 6,000 79,000 60




It may be defined as the process of setting production activities in motion through the release of work orders and instructions in accordance with previously planned schedules.

In every company they have the dispatch department. The function of this department is to dispatch the goods. The function of dispatching is more important in the intermittent production system and has less importance in continuous production system.

In GARDEN JOLWA the production system is the continuous. So, in this system the dispatch manager has to perform only few tasks. So, some functions of dispatch manager are as follows

1. To receive the pack goods from the production department and store in warehouse. 2. To receive the delivery order from the marketing department. 3. Arrange the goods as per the order. 4. Make the list of the boxes that will be dispatched. 5. To make challan. 6. To make invoice. 7. To give order to load the goods in the truck.


The procedure of dispatching starts by receiving the order from the marketing department. So, steps in this process are as follows: 1. Marketing department give the order to the dispatch manager about what to delivered. This This report looks like as follows:Number Name Code Grade DENIER Size of box 1 Bhilosa Tex AAA SD 112/36 JUMBO Total box 12 81.09RS/KG Rate

report contains the name of the customer, quality he required, quantity required, etc


After receive the order from the marketing department now the dispatch

manager will

check whether the demanded goods are available or not. If available then they make list of that goods. And then they make challan from it. They make the three copies of the challan, from which one for them, another for buyer, and third take back from the buyer when he received the goods. 3. After making the challan they make the invoice. Invoice is the statement which shows the Invoice contains the following information: total amount of bill. They also make three copies of invoice.

A. Buyers name. B. Consigners name. C. Delivery order no. & Date. D. Broker name & code. E. Mode of transportations. F. Vehicle no. G. Description of goods. H. Denier. I. Merge no. J. Grade. K. No of boxes. L. Total weight of goods in kg. M. Rate per kg. N. Total. O. Then taxes like VAT & EXCISE DUTY. P. Grand total or amount receivable. Q. Signature of the dispatch manager. Etc

4. 5.

They make the three copy of invoice, from which they give one copy to After dispatching the goods the work of dispatch manager is being over.

dealers. It is

useful for dealers when he go for payment collection. Now he has to file all the records safely for future use.


It is an extremely important cost that ever appears in accounting record. Components of this cost may be observed in several ways e.g. , in a profit making concern, sales lost as a result of stock out, or, there may be additional costs resulting from back ordering. Another component may be loss of goodwill due to delay in supply of finished goods. Sometimes, in production

system, a part shortage may cause idle labour on a production line of subsequent incremental labour cost to perform operation out of sequence, usually at a higher than normal cost. Such type of costs may also be considered as a shortage cost. Industrial or institutional storage of material is also systematic & well documented. Because of this reason following expenses are incurred in storage of material.


In textile firm, avoidable waste is while we are wrapping the string on the scope we have to take care otherwise it wraps on here and there on the scope. It is the wastage of string. This cost is avoidable should be minimize or avoided.

In the textile field who is manufacturing the cloths while production process the role is wrapping on the bim through the wrapping machine. All the role are not empty after the string are wraps on bim some role contain a string are not used further because it is very less so production manager should not control this type of waste.



According to American marketing association marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user. According to Philip kotler defines marketing is a social management process by which individuals and group obtain what they need through creating and exchanging products and value with other


Financial success often depends on marketing ability. Finance, operations, accounting, and other business functions will not really matter if there isnt sufficient demand for products and service so the company can make a profit. There must be atop line for there to be a bottom line. Many companies have now created a chief marketing officer, or CMO, position to put marketing on a more equal footing with other C-level executives, such as the CEO and CFO. Press release from organizations of all kind-from consumer goods makers to health care insurance and from non-profit organizations to industrial product manufacturerstrumpet their latest marketing achievements on their web sites. In the business press, countless articles are devoted to marketing strategies and tactics.


Profits through customer satisfaction ducts to fill in customer needs something Integrated marketing mix

LOCATIONS FOR MARKETING: Garden Silk Mills Pvt. Ltd. is having its marketing offices at different places like in Surat, Mumbai, Delhi, and Ahmedabad.


The searching of buyers & sellers. 2. MERCHANDISING: Matching the products to customers needs & desires (the market requirement). 3. PRICING: Determining the optimum price. 4. PROMOTION: Persuading the buyers to favors the firm & its products. 5. PHYSICAL DISTRIBUTION: The transport, warehousing & inventory control.

RESPONSIBILITY: They are responsible to satisfy the customer requirement by adopting better quality of product.

They are directly responsible to the general manager and the proprietor in-charge.

They are responsible to increase the volume of sales.

They are responsible from inquiry of goods & its delivery to their customer.

They are responsible for the proportion of discount policy.

They are responsible for checking the account of customer.

They are responsible for attracting new customer for their product.

They are responsible to give the best advertisement in different media through which attracting number of customers.


Customer segmentation can be identified by examining demographic, psychographics, and behavioral differences & geographic. The marketers then decide which segment presents the greatest opportunities that are its target market. For each chosen target market the firm develops a market offering. Garden silk mills sell its product in both local and foreign market. So we can say that Garden silk mill has geographic segmentation, which call for dividing market unit such as nation, state, countries, and cities region etc. Garden silk mill has good opportunity in foreign market.


A target market or target audience is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element to a marketing strategy. The target market and the marketing mix variables of product, place (distribution), promotion and price are the two elements of a marketing mix strategy that determine the success of a product in the marketplace. To sell their product at maximum efficiency they have to consider the different segment of the market. And this segment of the market is known as the TARGET MARKET. In other sense if we say that every company have their target market in which they sell their product at maximum level and low at other place.

The target market for the GARDEN JOLWA is the SURAT at maximum. They sell their product in SURAT more. Then they sell at other city of GUJARAT. But here sell is not so more as in SURAT. The next they sell their goods in some city of MAHARASTRA also. And also they sell some product in other state of INDIA. They also export their goods but at a very little scale.

In following diagram we can see the Target Market network.

As we see in the diagram that the GARDEN Company This shows they have more customers in SURAT. As we know SURAT is famous for textile business. Here the

70% 15% 10% 5%


have the major target market is in SURAT, which is 70%. MAHARASTRA


70% of the INDIAS looms machine are working. In SURAT there is approx 100000 looms machine. So, their will be need of POY will be around 80000 Tones/ month. And the GARDEN Company sells approx 40000 to 50000 Tones / month in the SURAT market. Here the price is also same for the entire different customer. They sell the entire product at the same price to all customers. Here the price differentiation is not possible. The GARDEN Company is more famous because of the reason that they are Quality Making Company


CBB may be defined as the acts of individuals in obtaining and using a product or services including the decision processes that precede and determine these acts.

PROCESS OF CBB Problem recognition Information search Personal sources Commercial sources Public sources Experimental sources Evaluation of alternatives Purchase decision Post purchase behavior Post purchase satisfaction Post purchase actions Post purchase use and disposal

IBB is the buying decision making process by which the formal organisation identifies its needs for product, raw material and services and identifies, evaluates and chooses among alternative brand and suppliers with an objective of sharpening its competitive edge.

PROCESS OF IBB Problem or need recognition General need description Product specifications Search suppliers Inviting proposals from qualified suppliers Selection of suppliers Determination of order size and placement of an order Performance review and feedback


Product classification means differentiation between the products. The GARDEN JOLWA have also many kind of product related to POY. But the main product is the POY. This company produces all the type of different goods according to the demand of those goods. This company has the great market after the RELIANCE. The list of some product offered by the company and its annual sales volume is as follows:1. POY( PARTIALLY ORIENTED YARN)















Product Mix Product mix is also called as product assortment which is the set of all product lines and items that a particular seller offers for sale to buyers. A companys product mix has certain width, length, depth and consistency. These concepts are illustrated for industrial products of Garden Silk Mills Pvt. Ltd. 1. 2. 3. 4. Width: -The width of a product refers to how many different product lines the Length: -The length of the product refers to the total number of items in the mix. In Depth: -The depth of a product refers to how many variants are offered of each Consistency: -The consistency of a product refers to how closely relate the various

company carries. The above table shows a product width of 4 lines. the above table it is 20. product in the line product lines.


As we know that the Garden Silk Mills is a well known company in producing different types of yarn and that yarn is used as raw material by companies who manufacture products related to fabric. Garden Silk Mills also manufactures dress and sari material but there main production is yarn and by producing yarn the company is getting more profit yearby-year and so in the above table it shown that the GARDEN SILK MILLS is at Maturity Stage


PACKING means wrapping of goods before they are transported or stored or

delivered to a consumer. On the hand, packaging is the sub-division of the packing function of marketing. packaging has been defined as an activity which is concerned with protection, economy, convenience and promotional consideration. Many marketers have called packaging a fifth p, along with four Ps i.e., price, place, product, promotion. Thus packaging is one among the activities of designing and producing the container or wrapper for a product. The wrapper or the container is called package.


Label is a part of product, which carries verbal information about the product or the seller. It may be a part of package, or it may be a tag attached directly to the product. Label may be a small slip or it may be a attached to the product. It conveys verbal information about the product and seller. The producer gives necessary information to the consumer through the label. The act of attaching or tagging the label is know as labelling. Label is of three types: BRAND LABEL

It is simply popularizing the brand name of the product. It gives only the brand names. GRADE LABEL It identifies or emphasizes the quality standards or grades, as A,B,C OR 1,2,3 etc. In another word it, identifies the quality. DESCRIPTIVE LABEL It gives written or illustrative objective information about the use, care, performance and other features of the product. A COMPLETE LABEL GIVES THE GARDEN SILLK MILL Brand name Address of the product Gross & net quantity of the content Ingredients in the product Direction for the use Precautionary measures Nature of the product Date of packing Retail price

The word BRAND has its origin in the Norwegian work BRAND, which means to burn. In ancient, framers used to put burn marks as identification on livestock to distinguish their positions. A brand is a name, term, symbol or design to identify the goods or services and to differentiate them from those of the competitors. A trade market is a brand that has been given legal protection, ensuring its use exclusively by one seller. Trademark is a legal term, while brand is a marketing term. In marketing, the brand name is a major selling tool and one of the most important components

of the total product personality. We are, in fact, living in an age of brand. the intensive brand promotions undertaken by marketers of various products have made consumers extremely brand-conscious. The battle in the market takes place not between companies, but between brands. Consumers buy brands; and generate income for the firm. It means that developing strong brands is a major responsibility of the firm.


Price shows the value of the companys product. The Co. itself decides its product price considering various factors. Gardens product is less priced than that of Reliance & which is the 2nd highest price in the market. These 2 competitors play a major role in the market according to their products price.

Earning of reasonable rate of return on investment Market penetration Price stability To maintain or improve market share To cope up with competition Market skimming Profit maximization objective


Pricing policy of the company usually stable, it does not keep on fluctuating with time and the price is decided after taking into consideration the prices of its competitors.

According to the company the price of the finished product is decided on the basis of the price of its raw material. Say for example if the demand of petroleum is increased or

decreased then it consequently effects the price of the raw materials and also the prices at times depends on the demand of the product also. The price of the company changes, when the yarn market is in boom period the price tend to be high and vice-versa. Garden silk mill has no fix price of different yarn and chips. They have 15 20 % margin on manufacturing cost. Price will change according feature of products. The factor affecting pricing policy is denier and 25% less then reliance industries

Physical distribution is the delivery of products at the right time and at the right place. Garden has selected various places to sell its product but its main market is SURAT because there is a high demand of yarn in SURAT, the Textile City. It also sells its product to other cities like Bombay, Bangalore etc. & to the foreign countries also.

There is usually a large channel of distribution which includes from producing a product to sell it to wholesalers and the wholesalers give it to the retailers and finally retailers sell it to consumers. This distribution network is for the consumer products. The main product of the company is POY which is the industrial product and the distribution network of the company is very simple and it is not so complex. In this network there is only one person who is known as DEALER in between the producer and the customer. The company mainly deals with the dealer. The dealer sells the product to the industrial customer and he mainly acts as a guarantee on behalf of the customer for the payment to the company. The sales manager personally does not know any of his customers but he just knows the name of their firms who consumes his product. Thus, we can say that the dealer has a very important role to play here. PRODUCER DEALER CUSTOMER

The company sells their product by dealers only. The dealers get the commission by the company and also from the customer. The GARDEN Company has their dealers in all the state. They have approx 100 dealers. The dealers network is in Gujarat, Maharastra, Rajasthan etc Some names of dealers are as follows: 1. Gheewala brothers. 2. Ekta Textiles. 3. Amidhara Textiles.


promotion means a set of efforts made by the company for stimulating the demand for its product without making any alteration in product mix, price and channels of distribution.


promotion mix means a set of elements or tool like advertising, public relation and publicity, sales promotion, personal selling and direct marketing used by the marketer for promoting sales by stimulating demand through persuasive communication.


Advertising can be used to build up a long term image for product. The sales of a product can be increased to a great extent with the help of advertisement. But, usually advertisement is done for the consumer products. But GARDEN is mainly dealing with yarn,

a raw material for fabric. They usually deal with dealers so there is no need for any kind of ads, as it is an industrial product. Advertising offers a reason to buy and sales promotion offers an incentive to buy. Promotion is nowadays more accepted by top management as an effective sales tool. The companies are under great pressure to increase their sales as numbers of competitors are also increasing. The industrial products manufacturing also do more or less promotional activities. The company always tries to promote the product in the way by which the price of the product is tried to maintain or reduce and the quality is improved so that they can offer better product to their customers. They also do trade promotions like giving free yarn samples and prices off.

BUDGET FOR ADVERTISEMENT: Every organization decides their amount or budget for advertising in advance. But it isnt possible in every situation. Sometimes company may not be in a position to decide, budget for advertising in advance due to certain reasons. Previously Garden Silk had fixed budget for advertisement. In the year 199394, the company provided Rs. 8, 69,000 as expenditure of advertisement, while in the year of 1994-95, the company has provided Rs.14, 52,000 as expenditure of advertising. But at present it is not fixed.

MEDIA FOR ADVERTISEMENT: Media is a means through which advertisement passes to consumers & by which consumer knows about product & its features. Garden uses different media for advertisement like dairies, textile-magazines, seminars, demonstration, Internet & other business magazines. Thus, Garden, does not more emphasizes on advertising because it produces industrial goods & its a long term buying decision & there is no regular customer for industrial goods.


Sales promotion is termed as, The Promotional Activities other than personalsalesmanship, advertising, publicity, which stimulate consumer purchasing & dealer effectiveness such as displays, exhibitions, demonstrations, contest & various other nonrecurrent selling effort not in the ordinary routine. The difference between sales promotion and advertisement is that advertising offers the reason to buy while sales promotion offers an impulse to buy. In Garden, there is long term planning for the sale of its product. Garden has slogans You fascinate me and Garden creates new woman which are impressive & attracts women consumers. THERE ARE THREE TYPES OF SALES PROMOTIONAL TOOLS: CONSUMER PROMOTIONAL TOOLS TRADE PROMOTIONAL TOOLS




Samples are offered to its retailers, i.e. in terms of returning the sarees with its particular design not liked by the retailer or wholesaler. This is in the case of marketing of sarees only.


To pace with volatile taste and preference of the consumer the company has to know the current consumer market. Hence, a questionnaire is prepared including the customers choices and market demand with options for answers. If the questionnaire is completely filled up and submitted by the customer, she will get one scarf free. On the basis of response and analysis of the data, the management decides to change its product.


The customer who buys direct from the companys shop is given impulses by offering them free premiums or gifts.

On buying products up to Rs. 1500/-, buyer gets 2.5 mts. fabrics in the form of topbottom clothes.

On buying products up to Rs. 3000/-, buyer gets 5 mts. fabrics in the form of top and bottom clothes.

On buying products up to Rs. 4000/-, buyer gets complete Duptta set, which consist of a complete dress for her. Thus the scheme is very effective.

DISCOUNT: Usually, quantitative discount is given to its retailers to infatuate and vigor to buy the product of the company.


BUYBACK GUARANTEE: The company also gives full buyback guarantee to its retailers or wholesalers, i.e. defected goods are purchased back by the company. PRICE OFF: The company often has to offer price off to its retailers or wholesalers to carry a particular brand. The company offers price off in terms of discount on the basis of amount of sales of retailers sale in more than current month then management give more discount to retailer or wholesaler.


These tools are used to overhaul the business, sway customers and motivate sales force to greater efforts. Trade show: -

The company takes part in the annual trade show organized by the Textile Industry Association in Delhi every year. Apart from it, the company also organizes a show named as, Text Style which is a sort of fashion only for the products of the company.


From Mumbai office the material is sent to foreign office Customer gives order at the foreign office Material is supplied to customer


Sales procedure of each company differs from one another. Garden follows short length sales procedure as it constitutes only 1 middleman. All the sales of the products of the company are done only by the dealers only as they know the requirements of the customers. He negotiates with the customers and he gets all the information regarding the price which the customers are ready to pay and the total they want. In short, the dealer gives the complete information to the sales manager of the company about the customers. Following details are given by the dealers to the sales officer:1. Customer name 2. Quantity required 3. Quality required 4. Aggregate price The sales manager studies the details given by the dealer and if he is satisfied with the requirements of the customer and the price offered by him, then the procedure will start. The officer gives the reply to the dealers and the dealers ultimately give to the customers.

If the company wants any change in its sales policy and price policy then the meeting is called of managers of all the departments and the opinion of each of them is taken into consideration and then the necessary changes in the side of the majority is taken. And whatsoever has been the decision, the sales manager will convey it to all the dealers. The procedure comes to and with the payment of the delivered goods and the customer has to give full payment and there is no policy of paying partly. The company follows its rule of payment and it does not change for any of its customers.


Each and every company has its own documents as per their business activities. Document is an organ which acts as a proof for both seller and buyer. It is a signed paper or an instrument which shows that the goods are dispatched from godown of the company that is the seller has sold his products and the buyer has received his order as per his requirement. Various documents indicate that the transaction has already done. The main documents of the company are Challan and Invoice. These two documents contain various details like the customer name, price of the product, quality of the product etc. Other documents are packing lists, sales book, order book, etc. and all these have their own uses.


One major reason for undertaking marketing research is to identify market opportunities. Once the research is complete, the company must measure and forecast the size, growth, and profit potential of each market opportunity. Sales forecast are used by finance to raise the needed cash for investment and operations; by manufacturing department to establish capacity and output levels; by purchasing to

acquire the right amount of supplies; and by human resources to hire the needed number of workers. In short, marketing is responsible for preparing the sales forecast Forecasting helps to come to near actual figures but it does not necessarily show the real position of the company. So for this purpose the experts are appointed. There are many different products whose forecasting is done by the company. Here the sales forecasting is done on the basis of previous month or previous year sales. The market for synthetic yarn is a seasonal and ultimately it depends on the price of the raw materials which again depends on the price of the petroleum products. The price is controlled by the international pricing policy. The company also uses various statistical records which are studied by the managers and the experts of the company. Forecasting is even affected by the seasons, festivals & their respective months when compared to previous figures.


Competitors mean the person who is making the product which is similar to ours. Means that product can be a substitute for the customer. For the success of all the company they must have the knowledge about all the competitors. They always keep on eye on every movement of the competitors. For e.g.If we say that Pepsi company always watch the movement of the Coca-cola company. They must have to watch their competitors to survive in the market. In that way the GARDEN JOLWA have also its competitors. So, they have to be very careful about their competitors. There are so many competitors in the market. One of the biggest competitors is the RELIANCE. Reliance is the very big and also first number company in the POY market. There are also other competitors, but they are small. And the GARDEN JOLWA has not to worry so much about those small competitors.



2. GUPTA SYNTHETICS. 3. INDO-RAMA SYNTHETICS. 4. JBF INDUSTRIES. 5. MODERN PETROFILS. 6. NOVA PETROCHEMICALS. 7. CENTURY INKA. INTERNATIONAL COMPETITORS: Garden Silk Mills Ltd operates in the Apparel and accessories sector. This analysis compares Garden Silk Mills Limited with three other miscellaneous apparel manufacturers in developing countries: Bata Chile SA of Chile (2000 sales of 68.25 billion Chilean Pesos [US$109.20 million]), Rex True form Clothing Company Limited of South Africa (289.10 million South African Brands [US$36.04 million]), and Buettner SA Industries Commercial which is based in Brazil (106.97 million Brazilian Reals [US$46.41 million]).


Product, Price, Place & Promotion are the 4 Ps of any Whole marketing company orgn. greatly depends upon these 4 Ps. The main product of the Garden Silk is yarn (synthetic & polyester) which is raw material for producing fabrics. The main competitor of Garden is Reliance. Comparison of 4 Ps is as follows..


Product itself is the first element. The product must satisfy consumers needs. Garden Silk produces the synthetic and polyester yarn which is an industrial product. The Co. makes the product as per customer needs. Reliance is the main competitor of this company which produces the same products. The quality-features of products of both the company differ from each other both the companys products are available in the same markets.

2. PRICE Price shows the value of the companys product. The Co. itself decides its product price considering various factors. Gardens product is less priced than that of Reliance & which is the 2nd highest price in the market. These 2 competitors play a major role in the market according to their products price.

3. PLACE Physical distribution is the delivery of products at the right time and at the right place. Garden has selected various places to sell its product but its main market is SURAT because there is a high demand of yarn in SURAT, the Textile City. It also sells its product to other cities like Bombay, Bangalore etc. & to the foreign countries also.

4. PROMOTION: Promotion is the persuasive communication about the products by the manufacturers to the buyers. The firms must undertake promotion work like advertising, publicity, personal selling etc. But Garden makes yarn which is an industrial product so there is no need for much promotional acts. The same policy is applied by the Reliance. The sales officer takes all the decision about the promotion acts. But they dont do any promotional activity. They sell their product through dealers. So, we can say that dealers are 1 kind of promotional tools.


For Marketing & Sales Functions: -

Marketing Management

Gami N.D , Published by New Popular

Prakashan, Edition 2009-2010, Page no. 38,46,53,59,92,132

For Human Resource Management : -

Human Resource management Notes given by DILSHAD BHATHENA



Jun '06

Jun '07

Jun '08

Mar '09

Mar '10

Rs. In Crore

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses 670.68 60.23 34.21 15.95 46.47 20.66 0.00 848.20 1,068.64 70.62 40.08 17.72 51.53 24.02 0.00 1,272.61 1,301.17 87.15 45.79 20.40 60.43 27.76 0.00 1,542.70 981.95 2,035.60 85.91 152.74 44.25 57.35 6.54 15.95 50.13 53.51 16.02 24.56 0.00 0.00 1,184.80 2,339.71 1,079.24 125.98 953.26 10.18 12.20 975.64 1,513.42 119.62 1,393.80 11.58 32.41 1,437.79 1,823.39 148.19 1,675.20 19.52 38.36 1,733.08 1,384.75 2,662.34 52.48 155.04 1,332.27 2,507.30 15.46 17.89 7.62 67.50 1,355.35 2,592.69

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off

117.26 127.44 46.33 81.11 48.66 0.69

153.60 165.18 56.87 108.31 57.57 0.65

170.86 190.38 63.78 126.60 57.40 0.48

155.09 235.09 170.55 252.98 55.48 87.19 115.07 165.79 44.84 72.56 0.26 0.14


Jun '06

Jun '07

Jun '08

Mar '09

Mar '10

Rs. In Crore

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities 38.29 38.29 0.00 0.00 304.14 0.00 342.43 493.22 145.86 639.08 981.51 38.29 38.29 0.00 0.00 320.68 0.00 358.97 634.92 56.12 691.04 1,050.01 38.29 38.29 0.00 0.00 353.97 0.00 392.26 679.87 122.28 802.15 1,194.41 38.29 38.29 38.29 38.29 0.00 0.00 0.00 0.00 396.83 452.00 0.00 0.00 435.12 490.29 838.09 948.57 65.88 79.35 903.97 1,027.92 1,339.09 1,518.21

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance 1,061.58 336.48 725.10 24.96 72.86 97.08 48.45 10.27 1,096.10 389.87 706.23 15.97 129.36 130.03 64.74 5.41 1,128.88 444.07 684.81 103.53 78.18 185.76 107.90 21.75 1,338.64 1,503.64 488.18 556.07 850.46 947.57 138.38 195.05 51.58 76.61 217.55 365.36 67.47 126.87 12.50 10.04

Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets

155.80 137.71 18.17 311.68 0.00 140.81 13.99 154.80 156.88 1.70 981.50

200.18 145.19 14.01 359.38 0.00 139.35 22.54 161.89 197.49 0.94 1,049.99

315.41 157.82 54.41 527.64 0.00 169.54 30.69 200.23 327.41 0.46 1,194.39

297.52 502.27 204.37 223.02 60.38 24.77 562.27 750.06 0.00 0.00 225.04 395.11 38.76 56.03 263.80 451.14 298.47 298.92 0.20 0.07 1,339.09 1,518.22