Helly GP

CHAPTER:-1 RESEARCH METHODOLOGY
SCOPE OF THE STUDY The scope of the study is wide and it includes the analysis of annual results, Profit & loss account and balance sheet of the company for the last 3 years. OBJECTIVE OF THE STUDY To understand the information contained in financial statements with a view to know the strength or weaknesses of the firm with regards to other 3 competitors and thereby enabling the financial analyst to take different investment decisions regarding the company. The objective of the study gives direction to go through the research problem. 1. To study the financial statements of JINDAL LTD, AARVEE DENIMS, K.G. DENIM, ARVIND MILLS in the textile industry. 2. Comparative study of financial position of these companies. 3. To understand the relationship maintained with the trade creditors and the debtors of the firm. 4. To check the profitability of companies. 5. To check solvency of the companies.
RESEARCH DESIGN The study used a descriptive research design for the purpose of getting an insight over the issue. It is to provide an accurate picture of some aspects of company environment. Descriptive research is used when the objective is to provide a systematic description that is as factual and accurate as possible.
Page 1 K.S.SCHOOL OF BUSINESS MANAGEMENT
SOURCES OF DATA Secondary data has been taken into consideration to solve the research problem. The following data are used:1. Annual reports of Jindal Ltd, Aarvee denims, K.G.. denim, Arvind mills 2. Some other websites are used for the purpose of getting some financial information to fulfill the objective of the study. METHODS OF ANALYSIS The data collected were edited, classified and tabulated for analysis. The analytical tools used in this study are: . Ratio Analysis. TIME BUDGET 4 months
CHAPTER: 2 INTRODUCTION TO TEXTILE INDUSTRY

Indian Textile industry is highly fragmented industry; at the same time it is an independent and self-reliant industry that has shown sustainable growth over the years. Indian textile Industry is valued at US$ 36 Billion with exports of US$ 17 Billion in 2005-2006. The Indian Textile Industry plays vital role in economic development and contributes 14% to industrial production in the country. Textile Industry contributes around 4% of GDP, 9% of excise collections, 18% of employment in industrial sector, and has 16% share in countrys export. Industry contributes around 25% share in the world trade of cotton yarn. India is the largest producer of the Jute, the 2nd largest producer of Silk, the 3rd largest producer of Cotton and Cellulosic Fiber/Yarn and 5th largest producer of Synthetic Fibers/Yarn. India contributes for 12% of the worlds production of textile fibers and yarn. Indian textile industry is second largest after China, and has share of 23% of the worlds spindle capacity. Including textiles and garments, 30% of Indias export comes from this sector. Indian Textile Industry is one of the largest industries that provide high exports and foreign revenue.
2.1 HISTORY OF TEXTILES INDUSTRY

The textile industry occupies a unique place in our country. The commercial development of man-made fiber began late in the 19th century, experienced much growth during the 1940s, expanded rapidly after World War-II and in the 1970s was still the subject of extensive Research and Development. The spinning and weaving both are very common and attached with each other in all parts of the world. However, the modern textile industry took birth in India in the early nineteenth century when the first textile mill in the country was established at fort gloster near Calcutta in 1818.
The cotton textile industry, however, made its real beginning in Bombay, in 1850s. The first cotton textile mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in overseas and internal trade. The cotton textile industry made rapid progress in the second half of the 19 th and by the end of the century there were178 cotton textile mills; but during the year1900 the cotton textile industry was in bad state due to the great famine and a number of mills of Bombay and Ahmedabad were to be closed down for long periods.
1The two world wars and the Swadeshi movement provided great stimulus to the Indian cotton textile industry. However, during the period 1922 t0 1937 the industry was in doldrums and during this period a number of the Bombay mills changed hands. The Second World War, during which textile import from Japan completely stopped, however, brought about an unprecedented growth of this industry. The number of mills increased from 178 with 4.05 lakh looms in 1901 to 249 mills with 13.35 lakh looms in 1921 and further to 396 mills with over 20 lakh looms in 1921 and further to 396 mills with over 20 lakh looms in 1941. The commercial development of man-made fiber began late in the 19th century, experienced much growth during the 1940s, expanded rapidly after World War-II and in the 1970s was still the subject of extensive Research and Development.
2.2 CURRENT SCENARIO OF TEXTILE INDUSTRY
The Indian textile industry is one of the major sectors of Indian economy largely contributing towards the growth of the country's industrial sector. Textiles sector contributes to 14 per cent of industrial production, 4 per cent of National GDP and 10.63 per cent of country's export earnings. Textile sector in India provides direct employment to over 35 million people and holds the second position after the agriculture sector in providing employment to the masses.
Growing at a rapid pace, the Indian Market is being flocked by foreign investors exploring investment purposes and with an increasing trend in the demand for the textile products in the country, a number of new companies and joint ventures are being set up in the country to capture new opportunities in the market.
2.3 MAJOR PLAYERS IN THE TEXTILE INDUSTRY

ALOK INDUSTRIES LTD. ARVIND MILLS LTD. JINDAL WORLDWIDE LTD. AARVEE DENIM LTD. BOMBAY DYEING & MANUFACTURING CO. LTD. CENTURY TEXTILES & INDUSTRY WELSPUN INDIA LTD. K.G.DENIM LTD. BOMBAY RAYON FASHIONS LTD NANDAN EXIM LTD.
CHAPTER: 3 COMPANIES SELECTED FOR TEXTILE INDUSTRY EVALUATION

JINDAL WORLDWIDE LIMITED ARVIND MILLS LIMITED AARVEE DENIM LIMITED K.G.DENIM LIMITED
3.1 CORPORATE OVERVIEW OF JINDAL LTD.

Jindal Worldwide is one of the most successful companies in the indian textile industries. Company is based in Ahmedabad which is considered as textile capital of India. JINDAL WORLDWIDE LIMITED incorporated under The Companies Act, 1956 and started its journey in the textile market in the year 1986 by Fabric trading and steadily expanded in to weaving, processing denim manufacturing and home textile. Company is based in Ahmedabad which is considered as textile capital of India. Jindal group of industries has its foothold in the domestic as well as Export markets for denim as well as home textile with annual turnover in excess of Rs. 500 crore of approximately.
The company is exporting Denim and Bed linen to its valued clientele across Canada, USA, countries of European Union, Srilanka and Bangladesh. Its excellence has been recognized and honored at various levels by government and other institutions. It is recipient of a number of special awards for its excellence in exports from Texprocil and President of India ever since 1994. Company started with the manufacturing of Denim in the year 20052006 and in just with the span of 5 years it is in the league of the top denim manufacturers in India.
OBJECTIVE OF THE COMPANY

The main objective of the company is establishing them as a market leader in the field of Home Textile and achieving higher satisfaction ratio with our clients. To meet the Global standards of cost, quality and pricing. To ensure Total Customer satisfaction. To achieve the leadership in all facets of operations. To meet the Global standards of cost, quality and pricing. To maximize profit and shareholders wealth.
VISION OF THE COMPANY

Jindal has a vision of long-term productivity with how the Textile can be made and distributed with a unique touch of Design and Innovation based upon the people lifestyle and taste. Each new product is made a revolution by Jindal Team and the Channel Partners. The integrated production, Designing, weaving and processing house made capable to compete and complete the Global demand of Textile Needs. Jindal team prepared for next generation high range of products and improving quality standards to ensure the highest Customer Satisfaction and to Attain Leadership in all facets of Operations. Jindals vision is designed for meeting the Global Standards of Cost, Quality and Pricing and maximizing profit and shareholders wealth.
ORGANIZATIONAL STRUCTURE
Chairman
BOD
MD
Director (Marketing)
Director (Finance)
Account Manager
Production Manager
Mumbai office
Delhi office
Finance Manager
Accounts officer
Production Supervisor
Marketing team
Marketing team
Finance Excutives
Accountants and Assistants
skilled workers
Account and Administration team
Account and Administration team
BUSINESS MESSAGE
The results have to be achieved and the means have to be

right. The company remains dedicated towards providing high quality products and services to the valued clients and to create an organization on the principle of atmost integrity.
The company values its responsibility towards Society and contributes to persue its efforts and initiative with same vigor that the company adopts to run their business.
PRODUCT PROFILE
DENIM
BOTTOM WEIGHT FABRIC
SHIRTING FABRIC
YARN DYED FABRIC
BED SHEETS
MAJOR EXPORT DESTINATION

9% 14% EUROPE U.S.A. 77% OTHERS
QUALITY ASSURANCE
Jindal maintains the high quality standards across all its division from the raw material stage to the finishing stage, the entire Product Life Cycle is Managed and monitored Quality Control export team. We have done a massive investment in ISO 9001 compliant world-class testing lab to reflect the Jindals Commitment towards maintaining global standards. We believe in proving ourselves best at our commitment to our customers and providing them efficient Services and Qualities. We have strong track record of On-Time Deliveries and high customer satisfaction ratio which has helped us to become the market leader in Textile Domain. Jindal adheres to International quality standards and inspection procedures - a fact underscored by the repeat orders the company has been receiving for decades now from its worldwide clientele. As a mark of Quality assurance & its commitment to total customer satisfaction, the company has achieved the ISO 9001: 2000 certification & since then company has been strictly following the guidelines in order to implement Total Quality Management.
3.2: PROFILE OF ARVIND MILLS LIMITED

1930- Swadesi Movement The aim was to indigenously produce fine and superfine cotton fabric as well as traditional material for vast potential Indian market. At this juncture, The Arvind Mills was set up with the pioneering effort of three brothers Kastuarbhai, Narrotambhai and Chimanbhai. During the 1980s several mills in Ahmadabad closed down As a result of competition from cheaper cloth produced by small power loom enterprises. Militancy spurred by textile labor unions prevented the shutdown of several loss-making mills, and in the mid 1980s Ahmadabad was a city of industrial strife. Arvind Mills has risen like a phoenix from the ashes of Ahmadabad textile mills. In just eight years it has successfully implemented a turnaround strategy. Established in 1930, an Arvind Mills Limited is the Flagship Company of $ 498 million. Lalbhai Group has now focused its attention on few selected core products groups. Such a focus seemed pertinent to prepare the company for playing a dominant role in the global market. Arvind today a one-stop shop for all cotton fabric requirements, where products range spans the entire gamut of cotton fabric. It is also a rapidly expanding manufacturer of garments such as jeans and shirts. With the best technology and business acumen Arvind Mills became the true multinational producing the finest fabric available in the country that rivaled imported fabric. Since then, there has been no looking back. Having established itself as Indias largest denim manufacturer and third largest denim producer in the world, Arvind Mills is confident that in the near future it will become the first largest denim producer in the world.
JOURNEY OF ARVIND MILLS The inception of Arvind Mills Limited at the hands of three brothers - Kasturbhai, Narottambhai and Chimanbhai Lalbhai. 1934 Arvind establishes itself amongst the foremost textile units in the country. 1980 Arvind records highest levels of profitability. The new strategy Reno vision, points at changing the business focus from local to global, towards a high-quality premium niche market. 1987-88 Arvind enters the export market for Denims with a dual focus - Denim for leisure and Denim for fashion wear. 1991 Arvind emerges as the third largest manufacturer of denim in the world. 1997 Indias largest state-of-the-art facility for shirting, gabardine and knits is set up at Santej. 2005 Arvind creates a unique one-stop shop service on a global scale, offering garment packages to reputed national and international customers. 2007 Arvind expands its presence in the brands and retail segment by establishing MegaMart One of Indias largest value retail chains. 2010 Arvind launches The Arvind Store, a concept putting the companys best fabrics, brands and bespoke styling and tailoring solutions under one roof. Arvind launches its first major Real Estate projects. Arvind becomes one of Indias largest producers of fire protection fabrics. 1931
PRODUCTS OF ARVIND MILLS
Portfolio Denim Shirting Garment Brand/Retail Others
3.3: PROFILE OF AARVEE DENIM

Aarvee Denims and Exports Ltd is a leading global player in the textile industry. Being backed by experienced promoters, the company is spreading its wings all over the globe at a very fast pace. Established in 1988 by Arora & VB Group, which has been involved in textile trade for over 50 years, are the forces behind this dynamic organization. Amtex India Private Limited was incorporated on 28th March 1988 and the commercial production of Denim fabric was started in 1989. The company was converted into a Public Limited company and the name was changed to Amtex India Limited vide special resolution passed u/s 21,31,44 (2)(b) at the Companies Act, 1956 on 2.4.1992 and the company obtained a fresh certificate of incorporation consequent to the change of name to Aarvee Denims & Exports Limited on 7.4.1994. More than five decades of experience, well qualified human resources and state of the art production units have made ADEL today Worlds one of the largest Vertically Integrated Denim Mill.
PRODUCTS OF AARVEE DENIM
DENIM FABRIC GARMENT
3.4: PROFILE OF K.G.DENIM

K G Denim Ltd. (KGDL) was incorporated on June 25, 1992 under the Companies Act, 1956. KGDL has its registered office at Then Thirumalai, Mettupalayam, Coimbatore District, Tamil Nadu. The company was promoted by K. Govindaswamy Naidu and his sons including KG Baalakrishnan and went public in the year 1993. KGDL is a premier denim and apparel fabric manufacturer, whose products are supplied to leading jeans wear makers, fashion brands and retailers worldwide. It sells its products under the trade mark Indigo Fabrics with various lines like Strength, Pride, Ecstasy, Fortune and Passion and Trigger for readymade jeans. KGDL has recently entered the home textiles market to provide innovative and specialized products for beds, blankets, pillow cases and duvet/ comforter covers. The company has two wholly owned subsidiaries (a) Trigger Apparels Limited (b) K G Denim (USA) Inc. K G Denim (USA) Inc is yet to commence commercial operations. Trigger Apparels Limited markets Trigger branded garments in the domestic market. It commenced operations in the domestic marketing during 2005-06.The products are well sought after by leading Jeanswear makers, fashion brands and Retailers worldwide. KG Denim sells its products under the trade mark Indigo Fabrics, with various lines like Strength, Pride, Ecstasy, Fortune and Passion. KG Denim now has entered the home textiles market to provide innovative and specialized products for Beds, Blankets, pillow cases and Duvet/comforter covers. KG Denim is part of textile group having annual turnover of $150 million and the company currently manufactures 24 million meters of denim fabrics 12 million meters of cotton fabrics 2 million equivalent sheet sets of made-ups 3 million jeans & trousers.
KG Denim has spinning equipments from Trutzchler & Lakshmi Rieter to produce some of the most demanding yarns required to weave fashion fabric for various applications.
PRODUCTS OF K.G. DENIM
Denim Home textile Bed sheets Denim sheets Yarn dyed sheets back cushions Pillow covers Yarn dyed blankets Bath range Towels Piece dyed towels) (single colour
Yarn dyed (multi-coloured towels with single colour in a strip) Blanket range Shower curtains Kitchen Napkins & table linens Hospitality products
CHAPTER:4 FINANCIAL EVALUATION OF JINDAL LIMITED

4.1 OVERVIEW OF BALANCE SHEETS
The company has not issued new equity shares in the past 3 years.
There is remarkable increase in the Reserves & surpluses in the past 3 years as the net profit is increased and profit is reinvested and net profit is not distributed as dividends.
The company has paid most of long term debts which results into decrease in Secured loans & unsecured loans.
The company has made investment of Rs.449.43 lacs in equity shares & preference shares.
There is an increase in amount of debtors as the company has an increase in sales.
There is decrease in loans & advances (current assets) as the company has got the receipts of outstanding loans & advances and it results increase in Cash balance.
4.2 OVERVIEW OF PROFIT & LOSS ACCOUNT
There is noticeable increase in Sales as the company has increased debtors collection period which results decrease in stocks.
But there is also an increase in cost of material & direct expenses as the production has also increased.
There is significant increase in financial charges due to interest on delay payment of income tax & interest on TDS .
Depreciation has is also increased as the fixed assets are also increased.
The profit is increasing as the sales has also increased and there is decrease in administration expenses & selling & distribution expenses.
4.3 CONCEPT OF RATIO ANALYSIS

Ratio Analysis enables the business owner/manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. To do this compare your ratios with the average of businesses similar to yours and compare your own ratios for several successive years, watching especially for any unfavorable trends that may be starting. Ratio analysis may provide the all-important early warning indications that allow you to solve your business problems before your business is destroyed by them. The Balance Sheet and the Statement of Income are essential, but they are only the starting point for successful financial management. Apply Ratio Analysis to Financial Statements to analyze the success, failure, and progress of your business. Importance of financial statement analysis in an organization. In our money-oriented economy, Finance may be defined as provision of money at the time it is needed. To everyone responsible for provision of funds, it is problem of securing importance to so adjust his resources as to provide for a regular outflow of expenditure in face of an irregular inflow of income. 1. The profit and loss account (Income Statement). 2. The balance sheet In companies, these are the two statements that have been prescribed and their contents have been also been laid down by law in most countries including India. There has been increasing emphasis on (a) Giving information to the shareholder in such a manner as to enable them to grasp it easily. (b) Giving much more information e.g. funds flow statement, again with a view to facilitating easy understanding and to place a year results in perspective through comparison with post year results.
(c)
The directors report being quite comprehensive to cover the factors that have been operating and are likely to operate in the near future as regards to the various functions of production, marketing, finance, labour, government policies, environment in general.
Financial statements are being made use of increasingly by parties like Bank, Governments, Institutions, and Financial Analysis etc. The statement should be sufficiently informative so as to serve as wide a curia as possible. The financial statement is prepared by accounts based on the activities that take place in production and non-production wings in a factory. The accounts convert activities in monetary terms to the help know the position.
Uses of Financial Statement Analysis The main uses of accounting statements for: Executives: - To formulate policies. Bankers: - To establish basis for Granting Loans. Institutions \ Auditors: - To extend Credit facility to business. Investors : - To assess the prospects of the business and to know whether they can get a good return on their investment. Accountants: - To study the statement for comparative purposes. Government Agencies: - To study from an angle of tax collection duty levee etc.
OBJECTIVES Analysis of financial statements is an attempt to assess the efficiency and performance of an enterprise. For that there are some objectives which are described as under. 1. EARNING CAPACITY OR PROFITABILITY The overall objective of a business is to earn a satisfactory return on the funds invested in it. Financial analysis helps in ascertaining whether adequate profits are being earned on the capital invested in the business or not. It also helps in knowing the capacity to pay the interest and dividend. 2. COMPARATIVE OTHER FIRMS POSITION IN RELATION TO
The purpose of financial statements analysis is to help the management to make a comparative study of the profitability of various firms engaged in similar business. Such comparison also helps the management to study the position of their firm in respect of sales expenses, profitability and using capital.etc. 3. EFFICIENCY OF MANAGEMENT The purpose of financial statement analysis is to know that the financial policies adopted by the management are efficient or not. Analysis also helps the management in preparing budgets by forecasting next years profit on the basis of past earnings. It also helps the management to find out shortcomings of the business so that remedial measures can be taken to remove these shortcomings. 4. FINANCIAL STRENGTH The purpose of financial analysis is to assess the financial potential of business. Analysis also helps in taking decisions; I. Whether funds required for the purchase of new machinery and equipments are provided from internal resources of business or not. II. How much funds have been raised from external sources.
5. SOLVECNY OF THE FIRM The different tools of analysis tell us whether the firm has sufficient funds to meet its short-term and long-term liabilities or not.
IMPORTANCE Ratio analysis is an important technique of financial analysis. It is a means for judging the financial health of a business enterprise. It determines and interprets the liquidity, solvency, profitability, etc. of a business enterprise. It becomes simple to understand various figures in the financial statements through the use of different ratios. Financial ratios simplify, summarize, and systemize the accounting figures presented in financial statements. With the help of ratio analysis, comparison of profitability and financial soundness can be made between one industry and another. Similarly comparison of current year figures can also be made with those of previous years with the help of ratio analysis and if some weak points are located, remedial measures are taken to correct them. If accounting ratios are calculated for a number of years, they will reveal the trend of costs, sales, profits and other important facts. Such trends are useful for planning. Financial ratios, based on a desired level of activities, can be set as standards for judging actual performance of a business. Ratio analysis discloses the position of business with different viewpoint. It discloses the position of business with liquidity viewpoint, solvency view point, profitability viewpoint, etc. with the help of such a study; we can draw conclusion regarding the financial health of business enterprise.

ADVANTAGES
Ratio analysis is an important and age-old technique of financial analysis. The following are some of the advantages of ratio analysis:
1. Simplifies financial statements: It simplifies the comprehension of financial statements. Ratios tell the whole story of changes in the financial condition of the business. 2. Facilitates inter-firm comparison: It provides data for interfirm comparison. Ratios highlight the factors associated with successful and unsuccessful firm. They also reveal strong firms and weak firms, overvalued and undervalued firms. 3. Helps in planning: It helps in planning and forecasting. Ratios can assist management, in its basic functions of forecasting. Planning, co-ordination, control and communications. 4. Makes inter-firm comparison possible: Ratios analysis also makes possible comparison of the performance of different divisions of the firm. The ratios are helpful in deciding about their efficiency or otherwise in the past and likely performance in the future. 5. Help in investment decisions: It helps in investment decisions in the case of investors and lending decisions in the case of bankers etc.
LIMITATIONS The ratios analysis is one of the most powerful tools of financial management. Though ratios are simple to calculate and easy to understand, they suffer from serious limitations. 1. Limitations of financial statements: Ratios are based only on the information which has been recorded in the financial statements. Financial statements themselves are subject to several limitations. Thus ratios derived, there from, are also subject to those limitations.
2. Comparative study required: Ratios are useful in judging the efficiency of the business only when they are compared with past results of the business. However, such a comparison only provide glimpse of the past performance and forecasts for future may not prove correct since several other factors like market conditions, management policies, etc. may affect the future operations. 3. Problems of price level changes: A change in price level can affect the validity of ratios calculated for different time periods. In such a case the ratio analysis may not clearly indicate the trend in solvency and profitability of the company. The financial statements, therefore, be adjusted keeping in view the price level changes if a meaningful comparison is to be made through accounting ratios. 4. Lack of adequate standard: No fixed standard can be laid down for ideal ratios. There are no well accepted standards or rule of thumb for all ratios which can be accepted as norm. It renders interpretation of the ratios difficult. 5. Limited use of single ratios: A single ratio, usually, does not convey much of a sense. To make a better interpretation, a number of ratios have to be calculated which is likely to confuse the analyst than help him in making any good decision. 6. Personal bias: Ratios are only means of financial analysis and not an end in itself. Ratios have to interpret and different people may interpret the same ratio in different way. 7. Incomparable: Not only industries differ in their nature, but also the firms of the similar business widely differ in their size and accounting procedures etc. It makes comparison of ratios difficult and misleading.
TYPES OF RATIOS
1. Liquidity ratios 2. Turnover Ratios 3. Leverage Ratios 4. Profitability Ratios 5. Solvency Ratios
1. LIQUIDITY RATIOS:Liquidity refers of the ability of a firm to meet its obligation in the short run, usually one year or when they become duration for payment. A proper balance between liquidly and profitability is required for efficient Financial Management. Liquidity ratios are based on the relationship between current assets the sources for meeting short-term obligation and current liabilities. The ratios, which indicate the liquidity of a firm, are: A. Current Ratio. B. Acid test Ratio. (Amount in lacs only)
CURRENT RATIO
Current Assets/Current Liability
JINDAL LTD.
Year C.A C.L Ratio
2009-10 12961.33 4324.76 2.9970
2010-11 19708.31 7218.39 2.7303
2011-12 18265.32 13328.29 1.3704
AARVEE DENIMS
Year C.A C.L Ratio
2009-10 17257.78 5323.78 3.2416
2010-11 22756.54 9,007.00 2.5265
2011-12 30797.31 34512.01 0.8924
K.G.DENIM
Year C.A C.L Ratio
2009-10 12135.39 7045.49 1.7224
2010-11 14575.11 8,216.05 1.7740
2011-12 15643.14 15086.62 1.0369
ARVIND MILLS
Year C.A C.L Ratio
2009-10 148,000.00 44080 3.36
2010-11 180,607.00 63,851.00 2.8286
2011-12 164,479.00 183,510.00 0.8963
4 3.5 3 2.5 2009-10 2 1.5 1 0.5 0 jindal aarvee denim k.g.denim arvind mills 2010-11 2011-12
Interpretation: Current Ratio of the firm measures its short-term solvency, which indicates the rupees of current assets available for each rupee of current liability. The current ratio represents a margin of safety for creditors. Ideal of current ratio is 2:1 in normal condition. Here in Case of Jindal current ratio of 2009-10 is much high which is around 3 times which indicates unproductive money in business. But in later year it is reduce to 2.73 times due to Current Assets increased more than Current Liability Increase. In year 2011-12 it reduced to 1.37 times due to Current Liability increase more than Current Assets. It is not good for business there may be create problem of shortage of working capital. While the other companies like Arvee denims, K.G. denims and Arvind mills there are not ideal current ratio in any of the company. In Arvee denims current ratio is constantly reduced, it shows better investment of surplus money. Arvind mills current ratio is highly fluctuated.
LIQUID RATIO
The Quick Ratio is sometimes called the "acid-test" ratio and is one of the best measures of liquidity. It is figured as shown below: Liquid Assets/Liquid Liability An acid-test of 1:1 is considered satisfactory unless the majority of your "quick assets" are in accounts receivable, and the pattern of accounts receivable collection lags behind the schedule for paying current liabilities.
JINDAL LTD.
Year C.AInventory C.L- B.O.D Ratio
2009-10 12961.33 4324.76 2.9970
2010-11 19708.31 7218.39 2.7303
2011-12 14450.78 13328.29 1.0842
AARVEE DENIMS
2009-10 10055.22 5323.78 1.8887
2010-11 11721.18 9,007.00 1.3013
2011-12 18450.52 34512.01 0.5346
K.G.DENIM:
2009-10 6387.49 7045.49 0.9066
2010-11 5786.01 8,216.05 0.7042
2011-12 5460.7 15086.62 0.3620
ARVIND MILLS
2009-10 104,800.00 44,080.00 2.3775
2010-11 110,691.00 63,851.00 1.7336
2011-12 91,637.00 183,510.00 0.4994
3.5000 3.0000 2.5000 2.0000 1.5000 1.0000 0.5000 0.0000 Jindal A.D K.G Arvind 2009-10 2010-11 2011-12
Interpretation: This Rario focus on the availibility of cash to manage the day to day operation of the company. Liquid ratio shows the Amount of cash available to meet immediate payments. In case of Jindal Liquid Ratio is much more high in year 2009-10 & 2010-11 but it is reduce in 2011-12 due to current liability is increase compare to Current Assets. While in case of other organizations there is constant decrease in liquid ratio that shows the poor liquidity. From all the organization Jindal has better Liquidity compare to others in year 2011-12.
2. TURN OVER RATIOS:Turnover Ratios are also referred to as Activity ratio or Assets Management ratios. This ratio establishes relationship between the level of activity represented by sales or cost of goods sold and levels of various assets.
DEBTORS TURNOVER RATIO

The debtor s turnover ratio is determined by dividing the net credit sales by average debtors outstanding during the year. NOTE: - Here there is no specification about net credit purchase and average debtors so, assume that (net credit sales = net sales) (Average debtors = debtors) The main function of this ratio is to measure how rapidly debts are collected. A high ratio is indicative of shorter time lag between credit sales and cash collection. A low ratio indicates that debts are not being collected rapidly.
Net Sales/Debtors
JINDAL
Year Net Sales Debtors Ratio
2009-10 28925.48 2376.87 12.1696
2010-11 36576.2 3424.34 10.6812
2011-12 50210.94 4531.75 11.0798
AARVEE DENIMS:
2009-10 37477.47 7883.19 4.7541
2010-11 48751.98 9,104.38 5.3548
2011-12 66139.3 13461.55 4.9132
K.G.DENIM:
2009-10 25850.64 3129.11 8.2613
2010-11 32723.48 2,748.79 11.9047
2011-12 40007.44 2374.94 16.8457
ARVIND MILLS:
2009-10 225,249.00 42,416.00 5.3105
2010-11 260761 56,363.00 4.6265
2011-12 329814 40,555.00 8.1325
18 16 14 12 10 8 6 4 2 0 jindal aarvee denim k.g.denim arvind mills 2009-10 2010-11 2011-12
Interpretation: Higher Debtor turnover Ratio is good because more higher debtors turnover ratio means more fastly, we are collecting money. Lower Debtor turnover ratio is not good because it tells that we have not manage debtors better way. Money from debtors are not collected fastly. In case of jindal there is decrease in debtors turnover ratio due to sales increase. But debtors ratio is increasing in the current year which shows decrease in debtors collection period. While in the case of Aarvee denim there is fluctuation in debtors turnover ratio because debtors increases higher than sales increases. While in case of K.G.Denim and Arvind mill, there is constatnt increase in Debtors turnover ratio that shows better management of debtors. From all the organisations K.G Denims has better way of manage debtors in year 2011-12.
CREDITORS TURN OVER RATIO

Creditors turnover ratio is a rate between net purchase and average amount of creditor Outstanding during the year. Net Purchase/Creditor A low turnover ratio reflects liberal terms granted by suppliers, while a high turnover ratio shown that accounts are settled rapidly. The creditors turnover ratio is an important tool as a firm can reduce its requirement of current assets by relying on suppliers creditors. The intent to which trade creditors are willing to wait for payment can be approximated by the creditors turnover ratio. NOTE: - Here, there is no specification about net credit purchase and average of creditors, So, let assume that, (net credit purchase = Net Purchase) (Average of creditors = creditors)
JINDAL
Year Net purchase Creditors Ratio
2009-10 19145.92 2515.47 7.6113
2010-11 25037.11 4560.14 5.4904
2011-12 31626.56 3935.99 8.04
AARVEE DENIM
2009-10 20355.93 3232.11 6.2980
2010-11 29024.34 6,622.49 4.3827
2011-12 44421.8 6548.91 6.7831
K.G.DENIM
2009-10 25850.64 5738.06 4.5051
2010-11 21362.96 6,838.90 3.1237
2011-12 24237.94 8254.75 2.9362
ARVIND MILLS:
2009-10 96,873.00 34,784.00 2.7850
2010-11 129,015.00 42,456.00 3.0388
2011-12 156,879.00 50,385.00 3.1136
9 8 7 6 5 4 3 2 1 0 1 2 3 4 2009-10 2010-11 2011-12
Interpretation: Higher Creditor Turnover Ratio is good because it will decrease the average payment period. From the above ratio new creditors will take the decision whether togive goods on credit or not. In case of K.G.Denim, there is constant decrease in Creditor turnover ratio. Reason for that is increase in payment period to creditors that also affect the goodwill of both. In case of Aarvee Denims there is fluctuation in creditors turnover ratio due to no fixed period follow by aarvee for payment to creditors. In case of jindal ltd. there is an increase in creditors ratio which shows that there is an increase in creditors period. In case of Arvind mill there is constant increase in ratio that shows decrease in payment period that increase goodwill of company. Jindal ltd.s Creditor turnover ratio is better than others because they have lower payment period in year 2011-12 compare to others.
FIXED ASSETS TURNOVER RATIO

The ratio measures the extent of turnover or volume of gross income generated by the fixed assets of a company or in other words the efficiency in their utilization. Net Sales/Net Assets
JINDAL
Year Net Sales Net Assets Ratio
2009-10 28925.48 8154.84 3.5470
2010-11 36576.2 9034.3 4.0486
2011-12 50210.94 9034.30 5.5781
AARVEE DENIMS:
2009-10 37477.47 28735.17 1.3042
2010-11 48751.98 31,605.84 1.5425
2011-12 66139.3 38393.14 1.7227
K.G.DENIM
2009-10 25850.64 11210.9 2.3058
2010-11 32723.48 10,025.51 3.2640
2011-12 40007.44 9345.37 4.2810
ARVIND MILLS
2009-10 225,249.00 191,811.00 1.1743
2010-11 260761 200,196.00 1.3025
2011-12 329814 226,284.00 1.4575
6 5 4 3 2 1 0 jindal A.D. K.G. 2011-12 2010-11 2009-10 ARVIND 2009-10 2010-11 2011-12
Interpretation: This ratio compares sales revenue to Fixed assets. This ratio tells us how effectively and efficiently a company is using its fixed assets to generate revenues. All the organisations Fixed assets turnover ratio is increase constantly year to year because sales increase higher rate than fixed assets increase. From all organisation Jindal is most effective and efficient company in using its Fixed assets to generate revenues.
3. LEVERAGE RATIOS
These ratios refer to the use of debt finance long term solvency of the firm can be examined by using leverage or capital ratios. The leverage ratio or capital structure ratio can be defined as the financial ratios which throw light on the long term solvency of a firm reflected in its ability to assure the long term creditors with regards to. Periodic payment of interest during the period of loan. Repayment of Principe on maturity or in predetermined installments at due dates.
DEBT-EQUITY RATIO
This ratio reflects the relative claims of creditors and share holders against the assets of the firm, debt equity ratios establishment relationship between borrowed funds and owner capital to measure the long term financial solvency of the firm. The ratio indicates the relative proportions of debt and equity in financing the assets of the firm. Debt/Equity JINDAL Year Debt Equity Ratio 2009-10 9182.81 7505.85 1.2234 2010-11 12448.5 8683.15 1.4336 2011-12 4010.52 10036.34 0.3996
AARVEE DENIMS
Year Debt Equity Ratio
2009-10 23137 16395.54 1.4112
2010-11 25571.1 19,865.34 1.2872
2011-12 10160.62 21478.99 0.4730
K.G.DENIM:
2009-10 11735.6 4268.55 2.7493
2010-11 11238.11 4,718.36 2.3818
2011-12 4436.73 4999.37 0.8875
ARVIND MILLS
2009-10 187,058.00 142,000.00 1.3173
2010-11 181,212.00 179,551.00 1.0093
2011-12 70,735.00 202,019.00 0.3501
3.0000 2.5000 2.0000 2009-10 1.5000 1.0000 0.5000 0.0000 Jindal A.D K.G Arvind 2010-11 2011-12
Interpretation: This ratio measures the proportion of equity and debt used to finance a companys assets. Higher the ratio shows outsider creditors have a larger claim than the owners of the business. A high ratio typically shows that the company aggressively financed its growth through debt. And the interest paid on debt creates adverse effect on earnings. In all the organizations there is constant decrease in debt equity ratio because there is constant decrease in debt year to year. From all the organizations Arvind mill has lower ratio compare to others in year 2011-12 which shows Arvind mills financed its growth through Equity.
PROPRIETARY RATIO
This ratio indicates the capital contributed by the proprietors or owners Owners Fund/ Total Fund *100
JINDAL Year Owner's Fund Total Fund Ratio 2009-10 7505.85 17701.31 42.4028 2010-11 8683.15 22311.33 38.9181 2011-12 10036.34 15352.33 65.3734
AARVEE DENIMS
Year Owner's Fund Total Fund Ratio
2009-10 16395.54 42357.5 38.7075
2010-11 19,865.34 48,410.86 41.0349
2011-12 21478.99 60913.34 35.2616
K.G.DENIM
2009-10 4268.55 16844.95 25.3402
2010-11 4,718.36 17,019.63 27.7230
2011-12 4999.37 26621.88 18.7792
ARVIND MILLS
2009-10 142,000.00 330,340.00 42.9860
2010-11 179,551.00 362,045.00 49.5936
2011-12 202,019.00 462,497.00 43.6801
Interpretation: Proprietory Ratio indicates financial position of the company and therefore this ratio called good if it is high because that shows company has enough capital to repay its debt. In case of Jindal, Aarvee denims, K.G Denims and Arvind Mills there is fluctuation in Proprietory Ratio due to increase in equity fund is not same as increase in total fund in all 3 years. From all the organisations Jindals Proprietory ratio is better compare to others in year 2011-12 which is around 65% is Equity Fund.
4. RETURN ON INVESTMENT
RETURN ON NET WORTH (P.A.T- Preference Dividend)/ (Owner's Fund-Misc. Exp. Not Written off)*100
JINDAL
Year PAT- P.D Net Owner's Fund Ratio
2009-10 732.44 7427.14 9.8617
2010-11 1349.16 8630.07 15.6332
2011-12 1504.72 10008.7 15.0341
AARVEE DENIMS
2009-10 2314.42 16336.83 14.1669
2010-11 3343.88 19801.56 16.8870
2011-12 1403.22 21382.24 6.5625
K.G.DENIM
2009-10 1.694 4268.55 0.0396
2010-11 449.81 4,718.36 9.5332
2011-12 737.07 4999.37 14.7433
ARVIND MILLS
2009-10 5200 142000 3.6620
2010-11 13480 179551 7.5076
2011-12 43423 202019 21.4945
25 20 15 10 5 0 jindal A.D. K.G. ARVIND 2009-10 2010-11 2011-12
Interpretation: It shows what percentage of profit is earned on Capital invested by ordinary share holders. In case of Aarvee denims, there is Fluctuation in Return on Investment because the rate at which return increase is not same as increase in Equity fund in year 2009-10 & 2010-11. In year 201112, there is decrease of return while equity used for get return is higher than 2010-11. In case of Jindal there is minor decrease in return on investment. In case of K.G. Denim and Arvind mills there is Constant increase in return on investment in Equity year to year. From all organization Arvind mill has better return on investment compare to other organizations in year 2011-12.
EPS
(P.A.T- Preference Dividend)/ Weighted Average No of Equity Shares
JINDAL
Year PAT- P.D Weighted Avg No of Shares Ratio
2009-10 732.44 200.52 3.6527
2010-11 1349.16 200.52 6.7283
2011-12 1504.72 200.52 7.5041
AARVEE DENIMS
2009-10 2314.42 350 6.6126
2010-11 3343.88 350 9.5539
2011-12 1403.22 350 4.0092
K.G.DENIM
2009-10 16.94 310 0.0546
2010-11 449.81 310.00 1.4510
2011-12 773.07 310 2.4938
ARVIND MILLS
2009-10 5200 5650 0.9204
2010-11 13480 5650 2.3858
2011-12 43423 5650 7.6855
E.P.S
12.0000
10.0000
8.0000
Ratio
6.0000
2009-10 2010-11
4.0000
2011-12
2.0000
0.0000 Jindal A.D K.G Arvind
Name of the Organization
Interpretation: EPS shows howmuch net profit producing by one share of the company. Higher EPS is better because it will increase the value of share. In case of Jindal, K.G Denims and Arvind mill, there is constant increase in Earning per share year to year. But in case of Arvind mill the increase rate is higher than Jindal and K.G Denims. While in Aarvee Denim, EPS is fluctuate year to year. From all the organizations, EPS of Arvind mill is better because it is increased at higher rate. In year 2011-12 EPS is Rs 7.68/share.
CASH EARNING PER SHARE

(P.A.T- Prefrence Dividend + Non Cash Expenses)/ Weighted Average No of Equity Shares
JINDAL
Year PAT- P.D + Non Cash Exps. Weighted Avg No of Shares Ratio
2009-10
2010-11
2011-12
1168.31 200.52 5.8264
1832.95 200.52 9.1410
2051.11 200.52 10.2290
AARVEE DENIM
2009-10
2010-11
2011-12
4635.22 350 13.2435
5701.02 350 16.2886
3972.48 350 11.3499
K.G.DENIM
2009-10
2010-11
2011-12
1307.39 310 4.2174
1742.95 310.00 5.6224
2081.42 310 6.7143
ARVIND MILLS
2009-10
2010-11
2011-12
16580 5650 2.9345
25096 5650 4.4418
56474 5650 9.9954
Cash E.P.S
18.0000 16.0000 14.0000 12.0000
Ratio
10.0000 8.0000 6.0000 4.0000 2.0000 0.0000 Jindal A.D K.G Arvind
2009-10 2010-11 2011-12
Interpretation: Cash EPS shows cash flow generated by company on a per share basis. The higher the cash EPS, the better it is considered to have performed over the period. In case of Jindal, K.G Denims and Arvind mill, there is constant increase in Cash Earning per share year to year. But in case of Arvind mill the increase rate is higher than Jindal and K.G Denims. While in Aarvee Denim, Cash EPS is fluctuate year to year. From all the organizations, Cash EPS of Arvind mill is better because it is increased at higher rate. In year 2011-12 EPS is Rs. 9.9954/share.
5. SOLVENCY RATIO
INTEREST COVERAGE RATIO EBIT/Interest
JINDAL
Year EBIT Interest Ratio
2009-10 1876.71 792.95 2.3667
2010-11 3016.98 1112.08 2.7129
2011-12 3324.59 1610.12 2.0648
AARVEE DENIMS
2009-10 4303.78 1265.25 3.4015
2010-11 5957.31 1,651.92 3.6063
2011-12 5150.19 2931.32 1.7570
K.G.DENIM
Year EBIT Interest
2009-10 1809.28 1712.67
2010-11 2314.11 1,638.09 1.4127
2011-12 3091.79 1987.35 1.5557
Ratio
1.0564
ARVIND MILLS
2009-10 20,299.00 15,099.00 1.3444
2010-11 30,492.00 17,012.00 1.7924
2011-12 44,814.00 21,185.00 2.1154
Interest Coverage Ratio

4.0000 3.5000 3.0000
Ratio
2.5000 2.0000 1.5000 1.0000 0.5000 0.0000 Jindal A.D K.G 2009-10 2010-11 2011-12
Arvind
Interpretation: Interest coverage ratio shows how easily a company can pay interest on outstanding debt. The lower the ratio, the more burderned by debt expense. An interest coverage ratio below 1 indicates the company is not generating sufficient revenue to satisfy interest expenses. In case of Jindal and Aarvee denim, there is fluctuation in interest coverage ratio year to year. In both the organization in year 2011-12 this ratio is decreased compare to previous year. That shows not generating sufficient revenue for payment of interest. In case of K.G Denim and Arvind mill, there is Constant increase in this ratio but in case of Arvind mill this ratio increase at higher rate compare to K. G denim. From all the organization, Arvind mill has better interest coverage ratio in year 2011-12 which is 2.11 times.
6. PROFITABILITY RATIO
A class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period is indicative that the company is doing well. Some examples of profitability ratios are profit margin, return on assets and return on equity. It is important to note that a little bit of background knowledge is necessary in order to make relevant comparisons when analyzing these ratios.
GROSS PROFIT RATIO
Gross Profit/Sales*100
JINDAL
Year Gross Profit Sales Ratio
2009-10 3218.24 28925.48 11.1260
2010-11 4912.14 36576.2 13.4299
2011-12 15649.13 50210.94 31.1667
AARVEE DENIMS
2009-10 10229.97 37477.47 27.2963
2010-11 13177.16 48751.98 27.0290
2011-12 24684.49 66139.30 37.3220
K.G.DENIM
2009-10 3452 25850.64 13.3536
2010-11 3911 32723.48 11.9517
2011-12 4735 40007.44 11.8353
ARVIND MILLS
2009-10 131,238.00 225,249.00 58.2635
2010-11 150,198.00 260761 57.5999
2011-12 201,949.00 329814 61.2312
70 60 50 40 30 20 10 0 jindal A.D. K.G. 2011-12 2010-11 2009-10 ARVIND 2009-10 2010-11 2011-12
Interpretation: G.P Ratio indicates to what extent the s.p of goods per unit may be reduced without incurring losses in operations. In case of Aarvee denims and Arvind mill, there is Fluctuation in G.P Ratio but in case of Jindal G.P Ratio is increase constant year to year due to better cost conrol. While in case of K.G Denim there is constant Decrease in G.P Ratio due to Cost of goods Produced is increase yaer to year. From all the Organisation Arvind mill has better G.P Ratio compare to others in year 2011-12.
NET PROFIT RATIO
Net Profit/Sales*100
JINDAL
Year Net Profit Sales Ratio
2009-10 732.45 28925.48 2.5322
2010-11 1349.15 36576.2 3.6886
2011-12 1504.72 50210.94 2.9967
AARVEE DENIMS
2009-10 2297 37477.47 6.1290
2010-11 3344 48751.98 6.8592
2011-12 1403 66139.3 2.1213
K.G.DENIM
2009-10 16.94 25850.64 0.0655
2010-11 449.81 32723.48 1.3746
2011-12 737.07 40007.44 1.8423
ARVIND MILLS
2009-10 5,200.00 225,249.00 2.3086
2010-11 13,480.00 260761 5.1695
2011-12 43,423.00 329814 13.17
Interpretation: N.P.Ratio indicates how efficent the company is and how well it controls its cost. In case of jindal and Aarvee Denims there is fluctuation in N.P Ratio due tolack of proper management of operating Expenses. While in case of K.G. denims and Arvind mill , there is constant increase in N.P Ratio due to better mangement of operating expenses. In Arvind mill, there is increase N.P Ratio at higher rate compare to K.G. Denims. From all the organisations, Arvind Mills N.P Ratio is better compare to others which is around 13% in year 2011-12.
CHAPTER: 5 FINDINGS
In the year 2011-12, Jindal has the higher current ratio compared to other companies. In other companies they have more current liabilities than the current assets. It shows that Jindal has the power to meet short term obligations. There is decrease in the current ratio from 2.7303 to 1.3704 in Jindal ltd. , which is around 50%. But there is high fluctuation in the current ratio of Aarvee Denim & K.G. Denim and in Arvind mills the ratio has been decreased by 60%. We can observe that there is decrease in the liquidity by 71% in Arvind mills and 60% in Aarvee Denim where as in K.G. Denim the liquidity has been decreased only by 49%. Though the liquidity ratio of Jindal is 1.0842. By observing the trend of all the companies, we can observe that Jindal has better liquidity than the other companies and other companies are suffering from poor liquidity. There is constant increase in the ratio of Debtors turnover ratio of K.G. Denim. In case of jindal there is decrease in debtors turnover ratio due to sales increase in the past financial year. But debtors ratio is increasing in the current year which shows decrease in debtors collection period. K.G. Denim is managing the debtors in a better way as the collection of money from debtors is fast than the other companies. In case of jindal ltd. there is an increase in creditors ratio which shows that there is an increase in creditors period. In case of Arvind mill there is constant increase in ratio that shows decrease in payment period that increase goodwill of company. Jindal ltd.s Creditor turnover ratio is better than others because they have lower payment period in year 2011-12 compare to others.
By comparing to all the companies Jindal Ltd. is using the fixed assets in most effective and efficient way to generate the revenue. There is an increase of 38% in Fixed asset turnover ratio of Jindal ltd. where as in K.G. Denim there is an increase of 31% in the ratio. And in Arvind Mills the ratio is increasing at very nominal rate. All the companies have decrease in debt equity ratio gradually, but Arvind mill has the lowest ratio as it has financed its growth through equity. Arvind mill is having the ratio of 0.3501. Where as in Jindal ltd the ratio has been decreased from 1.4336 to 0.3996 which shows decrease in long term debt as the equity has remained same for the 3 years. Jindal has strong financial position compared to others as it has enough capital to repay its debt as it has higher proprietary ratio. Return on net worth is the profit earned on capital invested by the share holders. Arvind mill has better return on investment. Which is 21.4945% in the year 2011-12. And in Jindal ltd. it is 15.0341 % which is close to the previous years ratio. In Aarvee Denim it has decreased from 14.1669 to 6.5625.
Jindal ltd. has an increase in gross profit of 32% in the current financial year than the previous years as it has achieved cost control. But Arvind mill has the better cost control than all the other companies. As it is already having 61.2312 % ratio in the year 2011-12. Again Arvind mill has achieved the highest PAT i.e. around 13%. The ratio has been increased from 5.1695 to 13.17%. and in Jindal ltd 2.9967 %. By comparing all the companies together we can observe that Arvind mill is market leader and Jindal is showing growth in the financial position than all other textile companies.
CHAPTER:6 CONCLUSION
Ratios make the related information comparable. A single figure by itself has no meaning, but when expressed in terms of a related figure, it yields significant interferences. Thus, ratios are relative figures reflecting the relationship between related variables. Their use as tools of financial analysis involves their comparison as single ratios, like absolute figures, are not of much use. Ratio analysis has a major significance in analyzing the financial performance of a company over a period of time. Decisions affecting product prices, per unit costs, volume or efficiency have an impact on the profit margin or turnover ratios of a company. Financial ratios are essentially concerned with the identification of significant accounting data relationships, which give the decisionmaker insights into the financial performance of a company. The analysis of financial statements is a process of evaluating the relationship between component parts of financial statements to obtain a better understanding of the firms position and performance. The first task of financial analyst is to select the information relevant to the decision under consideration from the total information contained in the financial statements. The second step is to arrange the information in a way to highlight significant relationships. The final step is interpretation and drawing of inferences and conclusions. In brief, financial analysis is the process of selection, relation and evaluation. Ratio analysis in view of its several limitations should be considered only as a tool for analysis rather than as an end in itself. The reliability and significance attached to ratios will largely hinge upon the quality of data on which they are based. They are as good or as bad as the data itself. Nevertheless, they are an important tool of financial analysis.
CHAPTER:7 BIBLIOGRAPHY &WEBOGRAPHY
BIBLIOGRAPHY
Annual reports of Jindal Worldwide Limited Financial Accounting for Management and Analytical Perspective - By Abrish Gupta
WEBOGRAPHY
www.jindalworldwide.com
www.arvindmills.com
www.aarveedenim.com
www.k.g.denim.com
CHAPTER:8 ANNEXTURE
(Amt. in lacs only)
BALANCESHEET OF JINDAL WORLDWIDE LIMITED

ARTICULARS SOURCES OF FUNDS SHARE HOLDERS FUND Share Capital Reserves & Surplus LOANS FUND Secured Loans Unsecured Loans Long term provisions DIFFERED TAX LIABILITY TOTAL APPLICATION OF FUNDS FIXED ASSETS Capital work-in-progress INVESTMENT Long term loans CURRENT ASSETS, LOANS & ADVANCES Current investments Inventory Sundry debtors Cash & Bank balances Loans & Advances Other current assets LESS: CURRENT LIABILITY & PROVISIONS NET CURRENT ASSETS MISCELLANEOUS EXPENSES TOTAL AS ON 31.3.2012 AS ON 31.3.2011 AS ON 31.3.2010
2005.20 8031.14 10036.34 3950.88 59.64 4010.52 8.11 1297.36 15352.33 9797.44 162.39 95.01 332.82 632.93 3814.54 4531.75 2875.73 6400.64 9.73 18265.32 13328.29 4937.03 27.64 15352.33
2005.20 6677.95 8683.15 11024.50 1423.99 12448.49 1179.38 22311.03 9034.30 733.71
2005.20 550.65 7505.85 7813.90 1368.91 9182.81 1012.64 17701.30 8154.84 10.54 820.63
4611.62 3424.34 1896.01 9776.34 19708.32 7218.39 12489.92 53.08 22311.03
3512.84 2376.87 751.34 6320.29 12961.33 4324.75 8636.57 78.71 17701.30
PROFIT & LOSS OF JINDAL WORLDWIDE LIMITED
PARTICULARS SALES EXPORT BENEFITS OTHER INCOME INCREASE / DECREASE IN STOCK TOTAL INCOME EXPENDITURE COST OF MATERIAL DIRECT EXPENSES EMPLOYEES EMOLUMENTS ADMINISTRATION SELLING & DISTRIBUTION FINANCIAL CHARGES DEPRECIATION TOTAL EXPENDITURE PBT PROVISION FOR TAXATION PROVISION FOR DIFFERED TAX LIABILITY FRINGE BENEFIT TAX PAT
AS ON 31.3.2012 50210.94 44.07 377.70 175.09 50807.80 35158.67 10567.65 171.14 462.72 330.26 1856.52 546.39 49093.34 1714.46 91.76 117.97 1504.73
AS ON 31-3-2011 INCOME 36576.20 108.96 546.07 502.39 37733.62 25037.12 7784.36 151.94 766.66 379.18 1225.68 483.79 35828.72 1904.90 389 166.75 1349.16
AS ON 31-3-2010 28925.48 155.35 375.4 (521.58) 28934.65 19145.93 6570.48 175.38 271.23 370.33 881.67 435.87 27850.90 1083.75 195 156.31 732.44
(Amt. in lacs only)
BALANCESHEET OF K.G. DENIM LIMITED
PARTICULARS SOURCES OF FUNDS SHARE HOLDERS FUND Share Capital Reserves & Surplus LOANS FUND Secured Loans Unsecured Loans LONG TERM PROVISIONS DEFFERED TAX LIABILITY OTHER LONG TERM LIABILITY TOTAL APPLICATION OF FUNDS FIXED ASSETS Capital work-in-progress INVESTMENT Long term loans CURRENT ASSETS, LOANS & ADVANCES Current investments Inventory Sundry debtors Cash & Bank balances Loans & Advances Other current assets LESS: CURRENT LIABILITY & PROVISIONS NET CURRENT ASSETS MISCELLANEOUS EXPENSES TOTAL
AS ON 31.3.2012
AS ON 31.3.2011
AS ON 31.3.2010
2566.51 2432.86 4999.37 4436.73 4436.73 188.61 1298.65 611.90 11535.26 9345.37 663.81 573.31 396.25
2566.51 2151.85 4718.36 10774.51 463.60 11238.11 1063.16
2566.51 1702.04 4268.55 11192.27 543.33 11735.60 840.80
17019.63 10025.51 103.43 531.63
16844.95 11210.90 12.47 531.68
10182.44 2374.94 665.26 1512.58 907.92 15643.17 15086.62 556.55 11535.29
8187.62 2748.79 624.14 2423.74 590.82 14575.11 8216.05 6359.06 17019.63
6349.38 3129.11 638.75 1720.63 297.52 12135.39 7045.49 5089.90 16844.95

Page 84
K.S.SCHOOL OF BUSINESS MANAGEMENT
PROFIT & LOSS OF K.G. DENIM LIMITED
PARTICULARS SALES JOBWORK RECEIPTS INCREASE / DECREASE IN STOCK OTHER INCOME TOTAL INCOME EXPENDITURE COST OF MATERIAL MANUFACTURING COST OTHER OPERATING EXPENSES TOTAL EXPENDITURE GROSS PROFIT FINANCIAL CHARGES LOSS/GAIN ON VARIATION IN FOREIGN EXCHANGE RATE(NET) DEPRECIATION PROFIT FOR THE YEAR Prior Year Expenses Provision for Current Tax Provision for Wealth Tax Provision for Deferred Tax MAT Credit Entitlement Prior Year Taxes NET PROFIT
AS ON 31-3-2011 INCOME 32723.48 1578.46 260.83 487.50 35050.27 21362.96 5511.98 4264.22 31139.16 3911.11 1913.82 3.60 1293.14 700.55 19.54 138.29 0.61 222.36 (-135.05) 4.99 449.81
AS ON 31-3-2010 25850.64 1051.91 (-557.30) 519.15 26864.40 15546.47 4047.47 3817.93 23411.87 3452.53 1964.89 100.58 1290.45 96.61 2.46 14.15 0.68 (-25.40) (-14.15) 101.93 16.94
PROFIT & LOSS OF K.G. DENIM LIMITED
PARTICULARS SALES OTHER INCOME TOTAL INCOME EXPENSES COST OF MATERIAL PURCHASE OF STOCK IN TRADE CHANGES IN INVENTORY MANUFACTURING EXPENSES EMPLOYEE BENEFITS EXPENSES FINANCE COSTS DEPRECIATION Other Expenses PROFIT BEFORE TAX TAX EXPENSE MAT CREDIT ENTITLEMENT DEFERRED TAX PROFIT FOR THE PERIOD
AMOUNT AS ON 3-3-2012 40007.44 316.89 40324.33 24237.94 5.37 (-1011.19) 8301.30 1891.17 2322.71 2322.71 2164.24 1104.44 225.40 (93.51) 235.48 737.07
BALANCE SHEET OF AARVEE DENIM LIMITED

(Amt. in lacs only)
PARTICULARS SOURCES OF FUNDS SHARE HOLDERS FUND Share Capital Reserves & Surplus LOANS FUND Secured Loans Unsecured Loans LONG TERM PROVISIONS DEFFERED TAX LIABILITY OTHER LONG TERM LIABILITY TOTAL APPLICATION OF FUNDS FIXED ASSETS INTANGIBLE ASSETS Capital work-in-progress INVESTMENT Long term loans CURRENT ASSETS, LOANS & ADVANCES Current investments Inventory Sundry debtors Cash & Bank balances Loans & Advances Other current assets LESS: CURRENT LIABILITY & PROVISIONS NET CURRENT ASSETS MISCELLANEOUS EXPENSES TOTAL AS ON 31.3.2012 AS ON 31.3.2011 AS ON 31.3.2010
2345.98 19133.01 21478.99 5994.46 4166.16 10160.62 1052.30 3248.62 56.41 35996.94 38393.14 13.16 794.45 510.89
2345.98 17519.36 19865.34 15897.88 9673.22 25571.10 2974.42
2345.98 14049.56 16395.54 15022.84 8114.16 23137.00 2824.96
48410.86 31605.84 3054.84 0.64
42357.50 28735.17 1668.08 20.25
12346.79 13461.55 3090.91 835.28 1062.78 30797.31 34512.01 (-3714.7) 35996.94
11035.36 9104.38 969.70 1647.10 22756.54 9007 13749.54 48410.86
7202.56 7883.19 431.24 1740.79 17257.78 5323.78 11934 42357.50
PROFIT & LOSS OF AARVEE DENIM LIMITED
PARTICULARS INCOME SALES INCREASE / DECREASE IN STOCK OTHER INCOME TOTAL INCOME EXPENDITURE COST OF MATERIAL MANUFACTURING COST EMPLOYMENT COST ADMINISTRATION & SELLING & DISTRIBUTION FINANCIAL CHARGES DEPRECIATION TOTAL EXPENDITURE PROFIT BEFORE TAX NET PROFIT
AS ON 31-3-2011 48751.98 123.67 1160.11 50035.76 29024.34 7834.26 1974.39 2611.62 1928.62 2357.14 45730.37 4305.39 3343.88
AS ON 31-3-2010 37477.47 (-1476.50) 1242.96 37243.93 20355.93 6658.03 1662.68 1723.25 1484.71 2320.80 34205.40 3038.53 2297.32
PROFIT & LOSS OF AARVEE DENIM LIMITED
PARTICULARS INCOME SALES INCREASE / DECREASE IN STOCK OTHER INCOME TOTAL INCOME EXPENDITURE COST OF MATERIAL EMPLOYMENT COST OTHER EXPENSES FINANCIAL CHARGES DEPRECIATION TOTAL EXPENDITURE PROFIT BEFORE TAX TAX EXPENSES CURRENT TAX MAT CREDIT TAX PROVISION DEFERRED TAX PROFIT FOR THE YEAR
AS ON 31-3-2012 66139.3 (2,853.49) 113.50 66,252.80 44,421.80 2,828.13 13,387.57 3,680.66 2,569.26 64,033.93 2,218.87 438.77 122.81 (20.14) 274.21 1,403.22
BALANCE SHEET OF ARVIND LTD.

(Amt. in lacs only) Particulars Share holder fund Share capital Reserves & surplus Total Secured Loans Unsecured Loans Deferred Tax Liability Long Term Provisions TOTAL As On 31.03.12 As on 31.03.11 As on 31.03.10
25804 1,76215 202019 70477 258 1282 4951 278987
25440 154111 179551 176323 4889 1282
23955 118045 1420.00 172873 14185 1282
362045
330340
Fixed Assets Intangible Assets Capital Work in Progress Long Term Loans and Advances Other Noncurrent Assets Investment FOREIGN CURRENCY MONETARY ITEM
2,26284 622 17910 18921 570 33711
200196
191811
14228
4686
30940 (75)
30023 (106)
TRANSLATION DIFFERENCE ACCOUNT(16) Current assets, Loan & Advance Inventories Land held for Sale Sundry Debtors Cash & Bank Balance Other Current Assets Loan & Advance Total Less-Current Liability & Provision Liabilities Provisions Total Net Working Capital Miscellaneous Expenditure (to the extent not written off) TOTAL
72842
69916 3450 56363 2909 10052 37917 180607
43200 0 42416 4314 9590 48480 148000
40555 3937 25670 21475 164479
174053 9457 183510 (-19031) 0.00
62769 1082 63851 116756 0.00
43342 738 44080 103920 0.00
278987
362045
330340
PROFIT & LOSS ACCOUNT OF ARVIND LTD.
Particular Sales & Operating Income Other Income Total Raw Materials Consumed Purchase of Finished Goods Employee Emoluments Others Interest & finance cost Depreciation Exceptional items (net) Decrease/(Increase) in Stocks Total Profit before tax for the year Less- Current tax Less-Deferred Tax Less Fringe benefit tax Add: MAT Credit Entitlement Profit For the year Less- Prior Period Income/(Expense) Profit before Tax Extra ordinary items (net) Profit after Extra ordinary items Balance as per last years balance sheet
2010-11 269122 3451 272573 129015 3679 27390 77293 19459 11616 0.00 (9359) 259093 13480 2684 0.00 0.00 (2684)
2009-10 231689 1183 232872 96873 4761 24090 73143 15547 11380 0.00 1878 227672 5200 877 0.00 0.00 (877)
13480 0.00 13480 0.00 13480 31442
5200 0.00 5200 0.00 5200 28234
Interim Dividend on Preference Shares Tax on Interim Dividend Proposed dividend on Equity Shares Tax proposed dividend Additional dividend on equity share Tax on additional dividend Provision for leave encashment Transferred to capital redemption reserves Transferred to debenture redemption reserve Balance Carried to Balance Sheet
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 090 45012
(76) (13) 0.00 0.00 0.00 0.00 0.00 (1980) 120 31442
PROFIT & LOSS A/C OF ARVIND MILLS

PARTICULARS Sales Other operating revenues Other Income Total Revenue Expenses Cost of materials Purchases of Stock in Trade Changes in inventories Employee benefits expense Finance costs Depreciation Other expenses Total Expenses Profit before extraordinary items and tax Extraordinary Items Profit before Tax Tax expense: Current Tax MAT Credit Entitlement Profit for the year AMOUNT AS ON 31-3-2012 3,29814 19598 13581 362993 1,56876 3740 428 36051 27025 13051 1,02193 3,39364 23629 25180 48809 8515 (3129) 43423

Helly GP

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Helly GP

Uploaded by

Copyright:

Available Formats

CHAPTER:-1 RESEARCH METHODOLOGY

Page 2 K.S.SCHOOL OF BUSINESS MANAGEMENT

Page 3 K.S.SCHOOL OF BUSINESS MANAGEMENT

CHAPTER: 2 INTRODUCTION TO TEXTILE INDUSTRY

Page 4 K.S.SCHOOL OF BUSINESS MANAGEMENT

2.1 HISTORY OF TEXTILES INDUSTRY

Page 6 K.S.SCHOOL OF BUSINESS MANAGEMENT

2.2 CURRENT SCENARIO OF TEXTILE INDUSTRY

Page 7 K.S.SCHOOL OF BUSINESS MANAGEMENT

2.3 MAJOR PLAYERS IN THE TEXTILE INDUSTRY

Page 8 K.S.SCHOOL OF BUSINESS MANAGEMENT

CHAPTER: 3 COMPANIES SELECTED FOR TEXTILE INDUSTRY EVALUATION

Page 9 K.S.SCHOOL OF BUSINESS MANAGEMENT

3.1 CORPORATE OVERVIEW OF JINDAL LTD.

OBJECTIVE OF THE COMPANY

VISION OF THE COMPANY

Accountants and Assistants

Account and Administration team

Account and Administration team

The results have to be achieved and the means have to be

BOTTOM WEIGHT FABRIC

YARN DYED FABRIC

MAJOR EXPORT DESTINATION

9% 14% EUROPE U.S.A. 77% OTHERS

3.2: PROFILE OF ARVIND MILLS LIMITED

Page 19 K.S.SCHOOL OF BUSINESS MANAGEMENT

Page 20 K.S.SCHOOL OF BUSINESS MANAGEMENT

PRODUCTS OF ARVIND MILLS

Portfolio Denim Shirting Garment Brand/Retail Others

Page 21 K.S.SCHOOL OF BUSINESS MANAGEMENT

3.3: PROFILE OF AARVEE DENIM

Page 22 K.S.SCHOOL OF BUSINESS MANAGEMENT

PRODUCTS OF AARVEE DENIM

DENIM FABRIC GARMENT

Page 23 K.S.SCHOOL OF BUSINESS MANAGEMENT

3.4: PROFILE OF K.G.DENIM

Page 25 K.S.SCHOOL OF BUSINESS MANAGEMENT

PRODUCTS OF K.G. DENIM

Page 26 K.S.SCHOOL OF BUSINESS MANAGEMENT

Page 27 K.S.SCHOOL OF BUSINESS MANAGEMENT

CHAPTER:4 FINANCIAL EVALUATION OF JINDAL LIMITED

There is an increase in amount of debtors as the company has an increase in sales.

Page 28 K.S.SCHOOL OF BUSINESS MANAGEMENT

4.2 OVERVIEW OF PROFIT & LOSS ACCOUNT

Page 29 K.S.SCHOOL OF BUSINESS MANAGEMENT

Page 30 K.S.SCHOOL OF BUSINESS MANAGEMENT

4.3 CONCEPT OF RATIO ANALYSIS

Page 32 K.S.SCHOOL OF BUSINESS MANAGEMENT

Page 33 K.S.SCHOOL OF BUSINESS MANAGEMENT

Page 34 K.S.SCHOOL OF BUSINESS MANAGEMENT

Page 36 K.S.SCHOOL OF BUSINESS MANAGEMENT

Page 37 K.S.SCHOOL OF BUSINESS MANAGEMENT

Page 38 K.S.SCHOOL OF BUSINESS MANAGEMENT

Year C.A C.L Ratio

2009-10 12961.33 4324.76 2.9970

2010-11 19708.31 7218.39 2.7303

2011-12 18265.32 13328.29 1.3704

Page 39 K.S.SCHOOL OF BUSINESS MANAGEMENT

Year C.A C.L Ratio

2009-10 17257.78 5323.78 3.2416

2010-11 22756.54 9,007.00 2.5265

2011-12 30797.31 34512.01 0.8924