PREFACE Business plays a very important role in economic development. To keep pace with gigantic business powers. India has to produce competent business administrators who need to have a balanced training in field of business administration. MBA plays an important role in this field. MBA is a combination of both Theoretical and Practical aspects of business and summer training gives an opportunity to work in real corporate business environment. The concept of summer training which is there in curriculum of business management school serves two purposes; Firstly - It gives the student a fair amount of insight of problems faced by them. Secondly - This type of project helps business management students to get a first hand experience of actual working condition, which otherwise is possible only when a student enters the job. In the preparation of this report, both the above purposes are kept in mind to make the report more meaningful.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
PREFACE
Business plays a very important role in economic development. To keep pace with
gigantic business powers. India has to produce competent business administrators who
need to have a balanced training in field of business administration. MBA plays an
important role in this field. MBA is a combination of both Theoretical and Practical
aspects of business and summer training gives an opportunity to work in real corporate
business environment.
The concept of summer training which is there in curriculum of business
management school serves two purposes;
Firstly- It gives the student a fair amount of insight of problems faced by them.
Secondly- This type of project helps business management students to get a first hand
experience of actual working condition, which otherwise is possible only when a student
enters the job.
In the preparation of this report, both the above purposes are kept in mind to make the
report more meaningful.
I undertook my training in NAHAR SPINING MILLS, LUDHIANA. During my
training, I studied about “WORKING CAPITAL OF MANAGEMENT” of NAHAR
SPINNING MILLS LIMITED LUDHIANA. I gained a good experience and in depth
knowledge during the surveys. This summer training report consists of my findings,
collection of data and then analyzed conclusions were drawn.
ACKNOWLEDGEMENT
Heartily thanks to all those who supported me ………
Acknowledging any one in mere words is a very difficult job. I would like to pay my
sincere thanks to all those people who helped me during this project work with their
guidance and invaluable advice.
The process of preparing this report on “Working capital of organization”, was a learning
experience for me. During the course of my preparation of this report I had to delve
deeply into many details and thus was able to enlighten myself.
Foremost of all, I express my sincere indebt ness to the Almighty for bestowing me with
favorable circumstances and keeping me in the high spirits. This project is the end
product of valuable contribution of the many persons to whom, I remain indebted.
I am thankful to Sh.HANS RAJ KAPOOR, GENERAL MANAGER (FINANCE) OF
NAHAR SPINNINGS MILLS who gave me an opportunity to take up my project in
organization. I would like to thank MR. ANIL GARG & SH.P.K. VASHISTH, MR
SANJEEV MITTAL (FINANCE CONTROLLER) for his support and encouragement
throughout the completion of my project. I am thankful for his active co-operation and
his keen involvement in my project. I am indebted to his for understanding and
appreciating my problems, which emerged during the course of my project
I am highly privileged to all the people, related directly or indirectly and the respondents
for being cooperative and sparing a few moments from their busy schedule; without their
help this project wouldn’t have proven meaningful.
SURABHI PURI
TABLE OF CONTENT
CERTIFICATE
ACKNOWLEDGEMENT
PART –I
INTRODUCTION
ORGANIZATIONAL PROFILE
PART- II
RATIONALE OF STUDY
OBJECTIVES OF STUDY
SCOPE OF STUDY
RESEARCH METHODOLOGY
THEORETICAL BACKGROUND OF WORKING CAPITAL
CONCEPT OF WORKING CAPITAL
TYPES OF WORKING CAPITAL
OPERATING CYCLE OF WORKING CAPITAL
DETERMINANTS OF WORKING CAPITAL
MEANING AND NATURE OF WORKING CAPITAL
REQUIREMENT OF WORKING CAPITAL
ANALYSIS OF WORKING CAPITAL
SWOT ANALYSIS
CONCLUSION
BIBLIOGRAPHY
INDIAN COTTON TEXTILE INDUSTRY
Indian textile industry is once of the largest segment of Indian economy for over 1/5 th of
industrial production. The winds of change have transformed a traditional art to a modern
industry, employing state of our technology and providing employment to over 15million
people.
The combination of traditional art and contemporary design has produced a variety of
yarn, fabric, home textile and other textile products. With over 9million hectares under
cotton cultivation & an annual crop of around 300 million kgs. India is amongst the
world’s largest reservoirs of this popular fiber. In addition to so odd varieties of different
description being grown in India, enables the industry to produce over almost every
conceivable count & construction of fabrics in a width of choice.
The process of economic liberalization begun in last decade has seen industry become
globally competitive not only in terms of price but also in quality. Modernization has not
been restricted to installation of sophisticated processing machinery wide width looms,
auto corners electronic clearers, spicer etc but also to adaptation of quality system
confirming to ISO-9000 stds. The recent euphoria created the European markets eco
friendly textiles has sent Indian industry into a flurry of activities to adapt it self to
market requirements.
Today with over 1300 spinning over 275 composite mills & around 1.49 million
registered loom, Indian cotton textile is a force to reckon with.
INTRODUCTION
The flagship company of nahar group- OSWAL WOOLEN MILLS LTD. Was
established in 1947 for spinning worsted yarns and knitted garments. Today it is a giant
Textile group of northern Indian with turnover of more than rs.1800 crore, producing all
types of yarns, fabrics and branded garments in addition to steel, sugar and vegitable oils .
The thrust of the group is in the Textile field aiming mainly at EXPORTS. There
are NINE important companies in the group
Nahar group of a vertically integrated well established & reputed conglomerate with a
wide range of portfolio from spinning knitting, weaving, processing, hosiery and
garmenting having latest art of technology units. The group has out sanding performance
in national textiles industry.
0.45million spindles & 5000 motors in multi- location units all over country
places. Nahar is in the top rank of spinners of country.
India’s one of the largest hosiery knitwear manufactures & exporters having
prestigious buyer like a old navy, gap, Perry Ellis, a shworth, cag and Philips,
van- heusen etc.
Holding hi profiled operated brands “Monte carto”, “Canterbury” and “Cotton
country” for wide range of garments.
Recognized “Golden trading house status” awarded by government of india.
NAHAR GROUP OF COMPANIES
“ONE OF THE PREMIER RECOGNISED GOLDEN
TRADING HOUSE OF INDIA”
“LALA VIDYA SAGAR OSWAL”
“FOUNDER NAHAR GROUP”
NAHAR SAGA
Nahar has busted into textile scenario through its flagship company woolen mills in 1949.
It has started from 800 spindles to modern day textile giant having varied Interest in
spinning, knitting, dying, weaving and garment.
Nahar group, promoted by Oswal family has grown leaps and bounds and
established itself as one of top business houses in india.
Nahar has seen very robust growth since its inception, having top international textile
brands like IEOD, OLD NAVY, GAP, QUICK SILVER, PERRY ELLIS, CAG,
PHILIPS, and VAN- HEUSEN in its kitty and exporting to market in
USA,
Europe,
Far East and
Middle East.
Nahar group has emerged as a reliable, trusted and committed global patner.
Following the retail boom nahar is making its foray in retail sector through its exclusive
outlets of its Brands.
“MONTE CARTO”
“CANTERBURRY” AND
“COTTON COUNTY”
PHILOSOPHY OF NAHAR
VISION
“BUILDING WORLD CLASS BRANDS & PRODUCT”.
Nahar is continuously working to provide best quality products at most competitive
prices. Customers are of utmost importance and it strives to achieve higher customer
satisfaction. Its business model is based on employing “BEST MINDS” & “BEST
HANDS” in industry to provide value added products and implementing cost cutting
tools.
VALUES
“WE VALUE OUR VALUES”.
Performance and teamwork are two attributes which they envisage in their employees and
are fully devoted to provide greater employee satisfaction and excellent working
environment. They abide by high ethical standards which is a key to their solid success.
They enhance their productivity by adapting to best technical capabilities and system. In
this way, they achieve and sustain their stupendous growth. They tend to became best by
making commitment to strive relentlessly to improve their products and team.
CORPORATE SOCIAL RESPONSIBILITY
“OUR MOTTO- PAYBACK TO SOCIETY”.
Their objective is to fulfill their social responsibility by encouraging and
supporting educational instructions and running health facilities
They also abide by their commitment to confirm to various enviromromental
norms and standards.
QUALITY POLICY & QUALITY OBJECTIVE
QUALITY POLICY
To provide the required support and assistance to manufacture group companies in
meeting the customer requirement of quality and delivery, especially in the area of
procurement of material and marketing of products. This will be achieved through
continuous improvement in effectiveness of well designed quality management
system.
QUALITY OBJECTIVES
Enhance customer
Enhance timely procurement of material.
BOARD OF DIRECTORS
SH. Jawaharlal oswal CHAIRMAN.
SH. Dinesh oswal MANAGING DIRECTOR.
SH. Kamal oswal DIRECTOR.
DR (Mrs.) H.K. BAL DIRECTOR.
SH. Amarjeet Singh DIRECTOR.
DR O P Sahni DIRECTOR.
Prof K.S. Maini DIRECTOR.
SH S.K Sharma ADDITIONAL DIRECTOR.
GENERAL MANAGER (FINANCE)
SH. HANS RAJ KAPOOR.
FINANCE CONTROLLERS
SH. ANIL GARG.
&
SH. P.K. VASHISTH
COMPANY SECRETORY
SH. BRIJ SHARMA.
AUDITORS
M/S GUPTA VIGG & CO.
(CHARTED ACCOUNTANT)
101, Kismat complex
G.T Road miller ganj ldh-141003.
BANKERS
PUNJAB NATIONAL BANK,
STATE BANK OF INDIA &
ICICI BANK LTD.
REGD OFFICE
373, Industrial area –‘A’ ldh-141003.
WORKS
Industrial Area-‘A’, Ludhiana (Punjab)
Dhandari kalan, G. T. ROAD, Ludhiana (Punjab)
Village Simrai, Mandideep, Distt. Raisen (M.P.)
Village Lalru, Distt. Patiala (Punjab)
Village Jalalpur, Distt. Patiala, (Punjab)
Rishab Spinning Mills, Village Jodhan, Distt. Ludhiana
NSML Unit 3, 100% EOU, Village Lehli/Lalru, Distt. Patiala
Nahar Fibres, Jitwal Kalan, Malerkotla.
PERFOMANCE REVIEW
OPERATING INCOME :
YEARS OPERATING INCOME
2002-03 46068
2003-04 38903
2004-05 44937
2005-06 48657
2006-07 91331
PERFOMANCE REVIEW OF EXPORTS
YEARS EXPORTS
2002-03 23839
2003-04 21026
2004-05 27148
2005-06 30178
2006-07 59980
PERFOMANCE REVIEW OF GROSS PROFIT & PROFIT AFTER TAX:
YEARS GROSS PROFIT PROFIT AFTER TAX
2002-03 8039 2485
2003-04 7612 2640
2004-05 6555 1604
2005-06 7807 2824
2006-07 18645 6429
PRODUCT MIX
100% Cotton Raw Material and Dyed Yarns
These yarns are available in single, double and multi-fold on cones.
RAW MATERIAL COMBED YARNS:
Count range NE 10 to NE 120.
Available from indigenous and foreign growth of cotton.
Specially yarns made from ELS cotton turn as PIMA & GIZA.
RAW WHITE EARNED YARNS :
Count range NE 10 to NE 32.
Available from indigenous and foreign growth of cotton.
DYED YARNS :
Count range NE 10 to NE 40.
Available from 100% Cotton & also Blended with Polyster, Acrylic & Viscose
staple fibres.
MELAGE YARNS :
Count range NE 10 to NE 40.
Available from 100% cotton & also blended with polysters acrylic
&Visorse staple fibres.
100% GRASSED/ MERCERISED YARNS :
Count range NE 20/2 to NE 120/2.
Available from indigenous and foreign growth of cotton in Raw White & Dyed
form
COMPACT SPIN YARNS:
Count range NE 20 to NE 60.
ORGANIC COTTON YARNS
100% Organic Cotton & Blends of organic cotton with normal cotton.
OPEAL AND YARN ON RIETER R 40 FULLY AUTOMATED ROTORS.
BLENDED YARNS:
Cotton: Viscose- Count range NE 10 to NE 40.
Cotton: Wool- Count range NE 10 to NE 10.
Cotton: Polyststers- Count range NE 10 to NE 60.
Cotton: Acrylic-Count range NE 10 to NE 40.
Polyster: Viscose- Count range NE 10 to NE 60.
SPECILISED BLENDED YARNS :
Cotton: Dralon- Count range NE 10 to NE 40 available from Drab Lon Acrylic
fibre.
Cotton: Coolmax- Count range NE 10 to NE 40 available from Dacron Polyster
fibre v(cool max)
Cotton: Nylon- Count range NE 10 to NE 60.
SYNTHETIC/ MAN MADE FIBRE YARNS :
100% Polyster yarns- Count range NE 10 to NE 40.
100% Cool max yarns- Count range NE 20 to NE 40.
100% Viscose yarns- Count range NE 10 to NE 40.
SPECIALIZED YARNS :
Grindle yarn.
Space dyed yarn.
Slub yarn.
Core spun yarn.
High twist yarn.
Reverse yarn.
FABRICS
KNITTED.
WOOVEN.
KNITTED:
In house capacity to knit world class fabrics on circular knitting & flat bed machines &
can manufacture single- Jersey, Jacquard auto stripers s/j striples, Flerce, Veleury
interlock stripes & pique knits with large fleet of world’s latest machines and have
facility of both compaction fabrics.
WOOVEN:
Nahar is manufacturing world class woven fabrics such as