Presentation 100917092132 Phpapp02

7/29/2019 Presentation 100917092132 Phpapp02

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Presentation on

SummerTraining

Presented by :

Bhagat Harman Deep

MBA 2(A)


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Indian Textile Industry

Textile is one of Indias oldest industry.

It is the second largest employment generator .

The industry uses a wide variety of fibers .

India contributes to around 12 percent of the

world's production of cotton yarn and textiles


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India covers 22 percent of the global market.

India is known to be the third largest manufacturer

of cotton across the globe.

India claims to be the second largest manufacturer

of yarn and textiles in the world.


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SPORTKING INDIA LTD.


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HISTORY

Sportking India Ltd. Was Incorporated on

15-02-1989 by Sh. Raj Kumar Avasthi &

his family members.


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Other Companies of Sportking Group

M/s. Sportking Knitwears

Classis Wears Pvt. Ltd.

M/s. Aradhan KnitwearsM/s. Sportking Exports

Namokar Capital Services Pvt. Ltd.


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Markets

USA: Target Stores, JC Penny, Hagger, Li and Fung,Mother Works, Costoc, Urban Outfitters, C.A.G.,HMX Sportswear and Walt Disney.

EUROPE: George and Tom Tailor.


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Conti.

Domestic :Pantaloon, Shoppers Stop,Lifestyle, Pepe Jeans, Max (Dubai and India),

Pyramid, Big Bazaar, Westside. They also have

a license for the manufacturer of Walt Disney

branded garments for India.


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Classic Wears Pvt. Ltd.


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Classic Wear Ltd. was established in the year 1987 inNoida.

Shifted from Noida to Ludhiana in the year 1988 havinga change in name Classis Wears Private Limited.Presently it is situated at Village Meharban, Rahon Road,

Ludhiana.

Presently Classic Wears is a leading manufacturer ofKnitwear for gents, ladies and kids in Northern India

Production capacity of 1, 50,000 pcs.


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Business Philosophy

TO GROW


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Quality policy is:

TO MEET THE COMMON PEOPLE

NEEDS


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ORGANISATIONAL CHART


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SWOT Analysis

Strengths

Established brand Name Sportking.

One of the oldest known fabric manufacturers.

Most experienced technical manpower.

Own dyeing and spinning units

Weaknesses

Fabric & Design development are not fullyexploited

Do not have enough retail outlets.

Employees are not well educated


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Better utilization can be made with new machines.

Can increase market share with wide rangeImprovement in distribution chain-number of

dealers and retail shops in the urban and semi urban

areas

Can make more links for export

Opportunities

Threats

The concern is facing competition from existing

and upcoming units in the industry.

Fluctuations in the prices of raw materials.


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RatioAnalysis


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Particulars 2005-06 2006-07 2007-08 2008-09

total current

assets 12,17,58,860.6 16,28,16,243.2 22,53,15,071.9 21,76,30,571

Current

Liabilities 4,23,07,975.99 6,31,81,759.48 10,23,06,548.8 9,34,23,704.73

CurrentRatio 2.87 2.57 2.20 2.32


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Particulars 2005-06 2006-07 2007-08 2008-09

total quick

assets 7,27,98,255.82 10,83,38,595.6 13,26,65,360.7 9,64,67,747.68

Current

Liabilities 4,23,07,975.99 6,31,81,759.48 10,23,06,548.8 9,34,23,704.73

Quick ratio 1.72 1.71 1.29 1.03


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Particulars 2005-06 2006-07 2007-08 2008-09

cash & bank 24,23,918.37 47,56,425.17 1,45,90,577.15 1,04,50,533.83

Current

Liabilities 4,23,07,975.99 6,31,81,759.48 10,23,06,548.8 9,34,23,704.73

Cash ratio 0.05 0.07 0.14 0.11


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Particulars 2005-06 2006-07 2007-08 2008-09

avg. debtor 6,72,55,651.59 7,80,47,244.66 10,05,96,472.4 9,19,85,740.16

net credit

annual sale 22,16,68,959.8 30,83,15,530.6 34,04,97,591.2 29,56,98,586

D.T.R. 3.29 3.95 3.38 3.21

DEBTOR TURNOVER RATIO =Total Credit sales

Avg. Debtors


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Particulars 2005-06 2006-07 2007-08 2008-09

avg. creditor 2,98,03,839.41 3,71,95,451.34 6,96,06,435.68 8,70,84,096.41

net credit

purchase 15,11,76,819.2 20,75,10,325.7 23,43,87,408.2 18,09,35,723.4

C.T.R. 5.07 5.57 3.36 2.07

CREDITOR TURNOVER RATIO =Total Credit Purchase

Avg. Creditors


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Particulars 2005-06 2006-07 2007-08 2008-09avg.

Inventory 4,48,64,093.41 5,17,19,125.78 7,35,63,679.36 10,69,06,267.3

sale 22,16,68,959.8 30,83,15,530.6 34,04,97,591.2 29,56,98,586

Ratio 4.940899122 5.961344588 4.628610126 2.765961188

INVENTORY TURNOVER RATIO =Sale

Avg. Inventories


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Particulars 2005-06 2006-07 2007-08 2008-09

outsiders fund 4,80,81,483.64 9,51,08,044.52 12,25,51,415.2 15,57,56,401.5

Shareholder

fund 7,72,64,900 6,79,35,265.29 8,76,75,610.73 8,59,92,405.54

Debt equityratio 0.622293999 1.399980468 1.397782282 1.811280897

DEBT EQUITY RATIO =Outsiders Fund

Shareholders Fund


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Particulars 2005-06 2006-07 2007-08 2008-09

sale 22,16,68,959.8 30,83,15,530.6 34,04,97,591.2 29,56,98,586

Profits 50,29,940.77 58,98,563.68 74,63,528.44 54,55,636.81

Ratio % 2.26 1.91 2.19 1.84

NET PROFITABILITY RATIO=Net Profit

Sales


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MEANING OF INVENTORY

Inventory is the physical stock of goodsmaintained in an organization for its smooth

running.

Raw Material

Work in Progress

Finished Goods

Spare Parts


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OBJECTIVES OF INVENTORYMANAGEMENT

Ensuring Availability of Materials

Avoidance of Abnormal Wastage

Avoidance of Out of Stock Danger

Economy in purchasing

Optimum Investing and Efficient use of

capital


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Risk Associated with Inventories

Price decline

Product deterioration:

Obsolescence

Cost Associated with Inventories

Material Cost

Ordering Cost

Carrying Cost


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ESSENTIALS OF INVENTORYCONTROL SYSTEM

Classification and Identification of inventories

Adequate storage Facilities

Adequate Reports and Records

Intelligent and Experienced Personnel

Coordination


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TECHNIQUES OF INVENTORYCONTROL

Safety Or Buffer Stock

Economic Order Quantity Technique

VED Analysis

ABC System

Just-in-time


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RESEARCH

METHODOLOGY


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To study the method of inventory

management & control in Classic Wears Pvt. Ltd.

To study the problems in inventory

management & control in Classic Wears Pvt. Ltd.

OBJECTIVES OF STUDY


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Research designFor this research descriptive research design is used

Size of PopulationAll the employees who directly or indirectly related to

the inventory in Classic Wears Pvt. Ltd., Ludhiana.

Sample size

Six employees working in Finance, Store, Production

Departments of Classic Wears Pvt. Ltd., Ludhiana.

Sample unit:One employee who directly or indirectly related to

the inventory in Classic Wears Pvt. Ltd., Ludhiana.


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Sources of Data

Primary Data: - Structured direct Interviews

with the concerned persons of Finance & StoresDepartment

Secondary Data: - Annual Report, Store Records

& various books

. They refused to fill questionnaire

Store department employees are not well educated.

LIMITATIONS OF THE STUDY:


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Inventory Management in ClassicWear Pvt. Ltd.

Raw Material consists:

Yarn

Accessories like buttons, zips, tags, patches etc.Work in process: Garments which are in manufacturin

process.

Finished goods : Garments which are ready to

sale in the market.

Spare Parts : Needles, Screw

I C l


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Prod. deptt. issue store inspect receive supplier

Demand

Place

Orders

Purchase

dept.

Net order issue receive tender

Quantity tenders quotation evaluations

Inventory Cycle


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Factors

Rank

Factor Effecting the Purchase Order


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Factors

Rank

Factor Effecting Inventory Policies


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Factors

Rank

Problems in Inventory Management


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Need of Inventory System

Factors

Rank


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There is a lot of old stock which has not any use.

At the time of issue they have to do

many entries as they have not computerized

system in store.

One the time of issue store-keeper issues some

quantity from old stock & some from new stock.

In this way they use the old stock.

No exact idea that how much quantity of yarn is

required.


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There is a lot of wastage. Store-keeper said that

after the completion of production the excess

material which is remained unused that is not

returned to the store-keeper.

If there is any defected piece, then they have tofind again the matching yarn.

Workers dont use material properly; there is a lot

of wastage. The reels, lace couldnt be used againdue to that.


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For valuation of the stock they use Average

method.

They resale the waste material in the market.

They purchase the material from their own

subsidiaries & from local market.

The main motive behind inventorymanagement system is smoothen operation of

factory.


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SUGESSTIONS


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No doubt lead time is important but other factor

like availability is also important. So they should

also give proper consideration to this.

They follow safety & bulk purchases for cost

reducing. But they should follow the JIT system.

As they are in fashion industry so this is thebest method. As they will purchase the goods

according to the order, so there will no stock

obsolescence.

According to the store-keeper there is lack of

space. The boxes of yarn & other material are

not properly stored. So there should be proper

racks for the boxes.


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The store department should becomputerized so that the recording can

be easy. The issuing of yarn is recorded

manually.

Wastage should be controlled. The

remaining material, after the completion

of production, should returned to the yarnstore. Production manager should take

care of this.


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Documents

Presentation 100917092132 Phpapp02