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Cotton fabric, gold and spices were the main attraction for the Britishers and other countries to come to India. Textile industry is flourishing since the olden days even when the markets were in unorganized nature. But the present scenario of textile industry is facing a fluctuating trend due to increase in oil prices and inflation in the world market. Garden silk mills Ltd is one of the leading producers of the polyester cloth and fabric and clothing. It is renowned all over the world for its cloth. Garden as a brand is popular in the world markets as well as in the Indian markets. Garden sarees and dresses are popular among the women as well as younger generation. At Garden I studied the working capital management. The working capital is very important for the profitability of the company as if the working capital is managed well then the company avoids itself from liquidity crunch. The working capital requirement for the year 2010-11 is Rs. 15702.17 lakhs. The company manages its working capital requirement on fund as well as non-fund basis. For non-fund basis the company uses the letter of credit and bank guarantee. The company’s debtor turnover ratio is 15-20 days which is considered good while the company’s creditor turnover ratio is also 15-30 days which is also good but the company should match both the creditor and debtor ratio so that the liquidity problem does not arise while making payment to the creditors. The company depends on bank finance and internal sources for meeting the working capital requirement needs. But the company can also under channel financing as it is an innovative method of fulfilling the working capital requirement needs.
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CHAPTER 2 BACKGROUND OF THE INDUSTRY
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2.1 OVERVIEW OF THE INDIAN TEXTILE INDUSTRY
Progressive measures are critical for the survival of textile industry in the modern era. Automation can help and so the stakeholders in textile industry...