WORK ALLOCATION SHEET

Division: A
Industry: Textile
Company : Vardhaman, Raymond , Page , Trident , KPR mill

Sr. Name of the Roll Photograph of Detailed Description of Work Done

No Student Number the student

1 Manya Jain A026 Trident Ltd. -Indivudual analysis

- PPT

Group analysis in word document

2 Mehul Mittal A027 Page industry-Indivudual analysis

- PPT

Group analysis in word document

Inventory analysis

3, Nabhii Kotecha A028 Vardhaman textile -Indivudual analysis

- PPT

Group analysis in word document

Cash analysis

4 Navshree Gupta A029 Raymond Ltd-Indivudual analysis

- PPT

Group analysis in word document

Working Capital Analysis
5 Nitika Bubna A030 KPR Mill Ltd-Indivudual analysis
- PPT
Group analysis in word document
Introduction, Dividend Policy Analysis
INTRODUCTION

The textile industry provides one of the most basic needs of people by maintaining sustained
growth for improving quality of life. It has a unique position as a self-reliant industry, from the
production of raw materials to the delivery of finished products, with substantial value-addition
at each stage of processing; it is a major contribution to the country's economy.
The unique structure of the Indian textile industry is due to the legacy of tax, labor, and other
regulatory policies that have favored small-scale, labor-intensive enterprises, while
discriminating against larger scale, more capital-intensive operations.
About our companies :

1. Trident Group - Trident Group is one of India's global amalgamation textile fabric
manufacturers with businesses in Home textile products, Paper, Chemicals, and Yarn
solutions. Headquartered in Ludhiana, Punjab, Trident is the largest terry towel and
wheat straw-based paper manufacturer in the world. With the establishment of state-of-
the-art manufacturing processes and systems coupled with appropriate human capital and
credentials, Trident has frequently received accolades from its patrons in recognition for
delivering high-quality standards and for its customer-centric approach.

2. Page Industries - Page Industries Limited is an Indian manufacturer and retailer of

innerwear, loungewear and socks, headquartered in Bangalore. It is the exclusive
licensee of Jockey International in India, Sri Lanka, Nepal, Bangladesh, the United Arab
Emirates, Oman, Qatar, Maldives and Bhutan. In 2011, it licensed Speedo swimwear
from Pentland Group for India and Sri Lanka.The company was founded in 1994 by
Sunder Genomal and his brothers Nari and Ramesh, and together they hold a 54% stake
in it.

3. Vardhaman Textiles - Vardhman Textiles, incorporated in 1973, is one of the pioneers in

textile industry with operations in the segments of yarn, sewing thread, steel, and fabric.
Formerly known as Mahavir Spinning Mills, it is a part of Vardhman Group managed by
Paul Oswal. Vardhman Group (Parent Company)Vardhman Group was set up in the year
1965 at Ludhiana, Northern India. Company has received ISO 9002/ ISO 14002
certification for its quality management. Vardhman Textiles, exports its products to more
than 25 countries and has a strong presence in markets like the EEC, USA, Canada,
China, Japan, Korea, Mexico, Brazil and Mauritius, Middle East.

4. Raymond - was incorporated in 1925 and is a leading Indian textile major Raymond. The
company is part of global conglomerate Raymond Group. Raymond was the first in 1959
 to introduce a polywool blend in India to create the world's finest suiting fabric, the Super
240s made from the superfine 11.6 micron wool. Under its textile business, it
manufactures worsted fabrics, wool and wool blended fabrics. It has production capacity
of 33 million meters per annum and has a product range of nearly 20000 design and
colours. The company exports to over 55 countries that include the USA, Canada,
Europe, Japan and the Middle East. It retails the products through 30,000 stores in over
400 towns across India.

5. KPR Mill Ltd. - KPR Cotton Mills Private Limited, now known as KPR Mill Limited,
was originally incorporated on March 19, 2003. Its journey into textiles began in the year
1984, In 1989, the group ventured into garment exports. Today KPR is a leading garment
exporter as well as a largest vertically integrated apparel company, engaged in
manufacturing and marketing readymade knitted garments, knitted fabrics and cotton
yarn. KPR is a vertically integrated apparel company with International accreditations
for quality control, environmental standards and social accountability, is a leading
manufacturer of readymade knitted apparel, cotton knitted fabric and yarn in India having
manufacturing facilities located at Coimbatore, Sathyamangalam, and Tirupur in
Tamilnadu, South India.

INDIVIDUAL ANALYSIS
TRIDENT LTD.

Dividend History and Policy

The Company, Trident ltd. strikes to maintain an equilibrium between retaining sufficient funds
for the growth of the Company & meeting contingency and also rewarding & providing return to
shareholders. Depending on the long term growth strategy of the Company and the prevailing
circumstances, the Board of Directors may recommend/ declare the dividend for declaration as
deemed fit.
From the quantitative analysis, in excel file, the following results were observed:
1. The Company maintains a balanced dividend payout and retention ratio indicating that
Trident Ltd. has a dividend policy that balances the dual objectives of rewarding
shareholders through dividends whilst also ensuring availability of sufficient funds for
growth of the Company.

2. The correlation of dividend irrelevance theory is more than that of relevance theory, so
it can be interpreted that the shareholder's of the company are with the company for the
long term returns and not short term benefits

3. The company had constant EPS throughout the years however in 2022 it increased
from Rs. 0.7 to Rs. 1.63 indicating increase in the overall profitability of the firm.

4. The number of shares increased by 10 times as a result of

stock split in 2019, thereby making face value per share
Rs. 1 from Rs. 10 per share.

Working capital

● The company seems to be on the moderate to aggressive

side of the working capital policy as they depend greatly
on short term funds and keep long term borrowings
minimal. This saves the company fixed interest component
and adds to profitability.
● Trident can be interpreted as a company that wants to
maintain its risks by making itself more liquid because its
current ratio for all years is greater than one, showing that
the company has more current assets than current
liabilities.

● Another thing that stands out is the company's practice of

holding a sizable portion of investments with brief
maturities, which guarantees the company's liquidity, the
 security of the investments, and the promise of consistent
returns.

Analysis of Cash, Inventory and receivables

● From the quantitative analysis using Baumol's model, it

was found that the business is holding much less cash than
is necessary for the entire five-year period. This indicates
that there is a greater likelihood that the business will
experience a liquidity problem, making it challenging to
fulfill its short-term obligations, including repaying loans,
paying bills, and paying employees.

● The company might be acting in this way to achieve high

profitability and growth through wise investment choices,
but since there are significant discrepancies between the
ideal and real cash balances, it is advised that the company
increase its cash balance.

● Trident Ltd has a low inventory turnover ratio as compared

to industry average, suggesting excess inventory on hand.
A low inventory turnover rate in this case highlights poor
liquidity, due to possible overstocking, and obsolescence.
It could also reflect a planned inventory build-up in the
case of material shortages or in anticipation of rapidly
rising prices.

● The company has a low receivables turnover ratio as

compared to industry average, which means a higher
collection period. It suggests that the company has lenient
debtors collection policies, in also increases the
possibilities of company incurring bad debts.

Conclusion

The analysis gave deep insights of the company’s financial

position, necessary for the investors and different stakeholders.
The company is giving almost a constant dividend of 36% over
the course of five years. Moreover trident’s dividend decision
highly correlated with the dividend irrelevance model, MM
approach. Furthermore, Trident can be interpreted as a company
that wants to maintain its risks by making itself more liquid
because its current ratio for all years is greater than one, showing
that the company has more current assets than current liabilities.
 The business operates on much lower cash than it should
according to Baumol's model. The company might be acting in
this way to achieve high profitability and growth through wise
investment choices. These findings are highlighted based on some
assumptions mentioned, so they might vary a little from the real
senario.

VARDHAMAN TEXTILE
Dividend history
Vardhaman Ltd. has declared dividends in the last three out of five years. The dividend has not
been constant throughout these years. The dividend yield ranges from 6% to 20% . We can also
see that dividend for the FYs 2020 & 2022 has not been declared. This must be due to the effect
of the pandemic and that the company wants to retain more money in the business.

DIVIDEND POLICY
1. The company has given dividend on 12th may 2018 , 9th may 2019 and 25th may 2021
of 15 , 17.5 , 51.5 per share respectively
2. The company’s board of director did not recommend dividend distribution in the year
2020 , 2022. The reason for not declaration of dividend in 2020 may be Covid.
3. The company has given dividend in 3 out of 5 years.

WORKING CAPITAL ANALYSIS

2022 2021 2020 2019 2018
4445.1
Total Current Assets 5639.27 4790.13 7 4156.43 4159.6

1522.1
Total Current Liabilities 1848.1 1349.05 1 1722.54 1358.27

Current asset/Current 3.05138 3.55074 2.41296 3.06242

Current Ratio liability 8 3 2.9204 6 5

we can see that the company's capital turnover ratio has fluctuated over the
past five years. In 2021, the ratio was 3.55, which is the highest it has been in
the past five years. This indicates that the company was able to generate 3.55
times its current liabilities in revenue during the year. In comparison, the ratio
was lowest in 2019 at 2.41. When comparing the ratio to the previous years'
data, we can see that it increased significantly in 2021 compared to 2020,
indicating a more efficient use of current assets to generate revenue. However,
the ratio was still higher in 2018 at 3.06.
Overall, the trend of the ratio is positive, indicating that the company is using
its current assets efficiently to generate revenue.
 2022 2021 2020 2019 2018

Working Capital Turnover Net Sales/ Working

Ratio Capital 2.42 1.70 2.14 2.61 2.06

The working capital turnover ratio measures how efficiently a

company uses its working capital to generate revenue. A higher
ratio indicates that the company is generating more revenue per
unit of working capital, which is generally considered a positive
sign.
Looking at the data provided, we can see that the working capital
turnover ratios range from 1.70 to 2.61, with an average of
approximately 2.07.

2022 2021 2020 2019 2018

Accounts recievable to Account recievable / 34.57 29.74 27.19 31.34 25.96
Working Capital Ratio Working capital 191 473 103 16 338

Looking at the given data, we can see that the accounts

receivable to working capital ratio ranges from 25.96 to 34.57.
This indicates that the company's ability to meet its short-term
financial obligations varies across the observed period.
When the ratio is higher, it indicates that the company has a
larger proportion of its working capital tied up in accounts
receivable, which could potentially lead to cash flow problems
if those receivables are not collected in a timely manner. On
the other hand, a lower ratio indicates that the company has a
larger portion of its working capital available for other uses,
such as paying off short-term debts.
 2022 2021 2020 2019 2018
Inventory to working capital Inventory / working 74.03 79.49 85.73 100.3 75.55
ratio capital 176 801 755 386 375

The inventory to working capital ratio is a financial ratio that

indicates the proportion of a company's current assets that is
tied up in inventory. A high inventory to working capital ratio
indicates that a significant portion of the company's working
capital is being used to purchase and maintain inventory.
Looking at the data provided, we can see that the inventory to
working capital ratio varies between 74.03% and 100.34%.
This indicates that the companies being analyzed have a
relatively high amount of inventory compared to their working
capital.

CASH INVENTORY AND RECEIVABLE MANAGEMENT

CASH
OPTIMUM CASH 911.384531 1426.8006 1174.99 952.9527 976.018
BALANCE 8 6 8 9 7

Cash And Cash Equivalents 2022 2021 2020 2019 2018

TOTAL 115.95 71.32 151.71 40.86 68.31

Analysis: The company consistently has far less cash balance than the optimal cash balance.
This means that there is an inefficiency of operations which could be potentially harmful in
the future as it could put a lot of pressure on future funding.

INVENTORY
Inventory Turnover Ratio: The inventory turnover ratio for the five years is between 1.15 and
1.57, which indicates that the company is selling its inventory at a relatively slow pace. This may
suggest that the company needs to take measures to improve its inventory management.
Inventory Holding Period: The inventory holding period for the five years is between 232.87 and
316.56 days, which indicates that the company is holding its inventory for a relatively long
period. This may lead to increased storage costs, obsolescence, and reduced liquidity. Therefore,
the company needs to consider ways to reduce the holding period of inventory.
RECEIVABLES
Debtors Turnover Ratio: The debtors turnover ratio for the five years is between 30.50 and
164.71, which indicates that the company is collecting its receivables at a relatively fast pace. A
higher turnover ratio implies that the company is efficiently managing its accounts receivables
and generating cash flows.
Average Collection Period: The average collection period for the five years is between 2.22 and
11.97 days, which indicates that the company is collecting its receivables within a relatively
short period. This may suggest that the company has an effective credit and collection policy.
Creditors Turnover Ratio: The creditors turnover ratio for the five years is between 11.59 and
13.81, which indicates that the company is paying its creditors at a relatively slow pace. This
may suggest that the company is taking advantage of its credit terms or facing liquidity issues.
Average Payment Period: The average payment period for the five years is between 26.43 and
31.48 days, which indicates that the company is paying its creditors within a relatively short
period. This may suggest that the company has a good relationship with its suppliers.
Operating Cycle: The operating cycle for the five years is between 240.08 and 328.53 days,
which indicates that the company is taking a relatively long time to convert its inventory and
receivables into cash. This may suggest that the company needs to improve its operational
efficiency.
Net Operating Cycle: The net operating cycle for the five years is between 253.10 and 340.49
days, which indicates that the company is taking a relatively long time to convert its inventory
and receivables into cash after deducting the time taken to pay its creditors. This may suggest
that the company needs to improve its cash flow management.

Raymond Ltd.
Dividend History
Raymond Ltd. has declared dividends in the last three out of five years. The dividend has been
constant throughout these years i.e., Rs. 3 per share. The dividend yield ranges from 0.25%-
0.35%. We can also see that dividend for the FYs 2020 & 2021 has not been declared. This must
be due to the effect of the pandemic and that the company wants to retain more money in the
business. This is also compensated by giving dividend in the FY 2022, which even though was a
loss-making year but the dividend is given out of the retained earnings of the company.
Dividend Policy
The dividend pay-out ratio is the percentage of amount given as dividend per share to the
earnings per share. In Raymond the dividend pay-out ranges from 15% to 25% while in the last
year it is negative because the dividend has been given out of the retained earnings of the
company.
Dividend yield calculates the amount of dividend paid in comparison to the market price of the
share. A high dividend yield might show that the company pays high dividend to its shareholders
but it may also be high due to the low market price of the share. In this case the dividend yield is
0.3%-0.36% which is decent as through the years there have been an increase.
Retention rate indicates how much percentage of the total earnings has the company retained in
the business. In the recent year it is nil but in the FYs 2019 & 2018 it is a significant amount.
This can mean that the company is focusing on expansion and/or growth thus investing more in
the business.
Overall, the company follows constant dividend policy, and both dividend pay-out & dividend
yield are increasing through the years.

Working Capital
The current ratio of the company is good although in the years 2018 & 2019, it was very less,
due to which the working capital was negative. A negative working capital shows that for each
rupee of current liability there is not enough current asset to pay them off i.e., the company will
not be able to meet its short term financial obligations with its current assets.
The quick ratio is also fluctuating except for the year 2019 in which it is 0.89 indicating that the
quick assets are not able to meet the quick liabilities of the company. In the last two years a
quick ratio of 2 and above is good, implying that the quick assets are enough to cover the quick
liabilities twice.
The company follows a moderate working capital policy meaning that it has enough current
assets to finance the current liabilities. They do not follow very strict or very liberal credit
policies and are able to collect money from its debtors in a decent period of time. We can see that
they might be following aggressive working capital policy in the FYs 2018 & 2019 as the
working capital was negative.

Cash Management
 2021-22 2020-21 2019-20 2018-19 2017-18

Optimum NA NA 16117.41 16380.34 13451.42

Cash
Balance

Actual Cash 7045.2 16982.93 11711.69 638.23 2116.66

Balance

The actual cash balance being lower than the optimum cash balance in the FYs 2020,2019 &
2018 means that the company is holding less cash than it should, and may not be able to meet its
financial obligations on time. The company must increase its cash balance which could mean
cutting down on costs or raising money through internal or external sources.

Receivables & Inventory Management

The trade receivables have increased over the years but this will only be beneficial if the
company is able to realise the amount from its debtors on a good pace. Otherwise, the amount
might stay stuck in the receivables. In this case, the company is able to get money from its
debtors within two months. Although in the year 2021, it was longer to due to the pandemic.
The Stock Turnover Ratio measures how efficiently the company is managing its inventory. The
company has a ratio of 30-35, except for 2021. The higher the ratio, the better. The company's
stock turnover ratio has been high over the past five years, indicating that it has been effectively
managing its inventory.
Stock Holding Period measures the number of days that inventory is held by the company before
being sold. The lower the number, the better. The company's stock holding period has been
relatively low over the past five years, indicating that it has been able to sell its inventory
quickly. While in the year 2021 we can see that SHP is 18 days, higher than the rest of the years
showing that during pandemic there was a lot of stock left unsold due to lower demand.
Debtors Turnover Ratio indicates how efficiently a company collects payment from its
customers. The higher the ratio, the better. The company's debtors turnover ratio has been
fluctuating over the past five years, but it has generally remained above 4, indicating that it has
been effectively managing its accounts receivables.
Average Collection Period states the number of days that it takes for the company to collect
payment from its customers. The lower the number, the better. The company's average collection
period has been relatively low over the past five years, indicating that it has been able to collect
payment from its customers quickly. Similar to the SHP we can see that the company was not
able to realise the money from its debtors as fast as the rest of the years because during covid
many people were insufficient to pay their debts due to heavy losses.

PAGE INDUSTRY
Dividend History and policy-
It seems that the company has been consistently paying out dividends over the past few years,
with a mix of regular and special dividends. The dividend per share has been varying widely,
ranging from Rs 41 per share to Rs 150 per share, and the dividend rate % has been ranging from
410% to 1500%. The dividend yield, which is the dividend per share divided by the market price
per share, has been ranging from 0.12% to 0.51%. This suggests that the company is not a high-
yielding stock, but rather a growth-oriented stock that is reinvesting its profits into the
business.The dividend payout ratio, which is the dividend per share divided by the earnings per
share, has been ranging from 103.95% to 491.25%. This indicates that the company is paying out
a significant portion of its earnings as dividends, which may limit its ability to reinvest in the
business.Overall, it seems that the company has a dividend policy that is focused on providing a
consistent stream of dividends to shareholders, while also balancing the need to reinvest in the
business. Investors who are looking for a high-yielding stock may need to look elsewhere, but
those who are interested in a growth-oriented company that also pays dividends may find this
company to be an attractive investment opportunity.
Working Capital-
Working capital is the gap between current assets and current liabilities, representing the
company's daily activities. Table-based observations and analysis:Working capital: Over time,
the corporation has been able to raise its operating finances. Current ratio: The ratio of current
assets to current liabilities has dropped over time, suggesting the firm may be using more short-
term debt to support its operations. The corporation has adequate current assets to meet its
current obligations because its current ratio is over 1. Overall financial health: Working capital
and current ratio are essential measures of a company's financial health, but they should not be
analysed alone. To evaluate the company's profitability, cash flow, and debt, more financial
statements are needed.Trend analysis: Looking for trends or changes across time might reveal
corporate difficulties or possibilities. For instance, a declining current ratio over several years
may signal financial danger or issues, whereas a sudden boost in working capital may signify a
large cash infusion.
Cash-
Cash and cash equivalents include cash on hand, bank balances on current accounts, deposits
with initial maturities of less than three months and more than three months but less than one
year.The corporation has less than 1 unit of money on hand for five years. From 2018 to 2021-
22, bank current account balances rose to 888.89 units of currency. In 2019-20, deposits with
initial maturity of less than three months were 1,100.06 units of currency, whereas in previous
years they were 0.In 2018, 2019, and 2021-22, the corporation had deposits with initial
maturities of more than three months but less than one year, with the maximum value of
3,950.06 units of currency in 2019. The firm has no deposits in 2020.Due to rising bank current
account balances, the company's cash and cash equivalents expanded dramatically from 2018 to
2021-22. The firm had no deposits with initial maturity of less than three months in four of the
five years, which may have affected its liquidity.
Inventory-
we can observe that the value of raw materials, stores and consumables, work-in-progress, and
traded goods have generally increased over the past five years, whereas the value of finished
goods has fluctuated.The value of raw materials has increased from 1,984.17 in 2017 to 4,771.02
in 2022, which indicates that the company is stocking more raw materials for production.
Similarly, the value of stores and consumables has also increased over the years.The value of
work-in-progress has also increased, which means that the company has more work that is in
progress, and this could be due to an increase in production or delays in completing the work.The
value of finished goods has fluctuated, but it has generally increased from 2018 to 2020, and then
decreased in 2021 and 2022. This could be due to changes in demand or production levels.The
value of traded goods has also increased over the years, indicating that the company is trading
more goods.Overall, the increase in inventory levels could be due to the company's growth or
increase in demand, but it could also lead to higher carrying costs and obsolescence risks.

KPR MILL LTD.

Dividend History
1. The company has a good dividend track report and has consistently declared dividends for the
last 5 years.
2. The company has also declared an interim dividend for years 2021-21 and 2019-2020.
Dividend Policy
The dividend pay-out ratio is the percentage of amount given as dividend per share to the
earnings per share. In Raymond the dividend pay-out ranges from 4% to 123% due to changes in
EPS trends.
Dividend yield calculates the amount of dividend paid in comparison to the market price of the
share. A high dividend yield might show that the company pays high dividend to its shareholders
but it may also be high due to the low market price of the share. In this case the dividend yield
ranges from 12%-55%.
Retention rate indicates how much percentage of the total earnings has the company retained in
the business. There been a huge increase in retention ratio in FY 2022 compared to FY 2018.
This can mean that the company is focusing on expansion and/or growth thus investing more in
the business.
Overall, the company follows constant dividend policy, and both dividend pay-out & dividend
yield are increasing through the years.
Working Capital

1. Current ratio indicates a company's ability to service its current obligations as it reflects the
number of times short-term assets cover short-term liabilities.
2. KPR mill has an increasing trend in current ratio in the last five years. It indicates that with
every increase in debt or current liabilities, the company is able to generate enough liquidity to
maintain its ratio.
3. Cash or absolute liquidity ratio establishes the relationship between the absolute liquid assets
and current liabilities.
4. KPR mill has had variation of increase and decrease trends in its cash ratio over the last
five years.
5. The company’s cash ratio increased till 2019-2020 after which it decreased and increased
again in the year 2021-2022. This change in trend could be due to the Covid-19 pandemic.

Analysis of Cash, Inventory and receivables

1. KPR mill has seen an overall increase in cash and cash equivalents over the last five years.
2. Baumol’s model of cash management helps in determining a firm's optimum cash balance
under certainty.
3. From the quantitative analysis using Baumol's model, it was found that the business is
holding adequate cash as is necessary. This indicates that there is less likelihood that the business
will experience a liquidity problem.
COMBINED ANALYSIS OF THE SECTOR

DIVIDEND POLICY AND HISTORY

Dividends are declared at the Annual General Meeting of the shareholders based on the
recommendation by the Board. The Board may recommend dividends, at its discretion, to be
paid to our members. The Board may also declare interim dividends.
The factors that may be considered by the Board before making any
recommendations/declarations for the dividend are future capital expenditure plans, profits
earned during the financial year, cost of raising funds from alternate sources, cash flow position
and applicable taxes including tax on dividend.
1. The Board of Directors of K.P.R. Mill Limited (KPR) announced that to ensure a regular
dividend income for the Shareholders of the Company and long term capital appreciation,
the Board of Directors of the Company adopted a dividend policy to pay an annual
dividend payout in the range of 20-25% of the Profit After Tax(PAT) on Standalone
results. KPR Mill has consistently declared dividends for the last 5 years.
2. Vardhaman Textiles and Raymond declared constant dividends in the years 2022, 2019
and 2018. No dividend was declared in the years 2019-2020 & 2020-2021.This may be
due to the effect of the Covid-19 pandemic.
3. Page Inedustries has been consistently paying out dividends over the past few years, with
a mix of regular and special dividends. The dividend per share has been varying widely,
ranging from Rs 41 per share to Rs 150 per share.

Working Capital Analysis

Year Current Trident Vardhaman Raymond KPR Mill Page

Ratio Industries
(industrial
average)

2021-22 1.25 3.05 1.37 7.05 1.67

2020-21 0.99 3.55 1.68 6.6 1.72

2019-20 1.03 2.92 1.08 7.01 1.82

2018-19 1.12 2.41 0.90 7.31 1.88

2017-18 1.09 3.06 0.94 4.42 2.08

1. We can see that Trident, Raymond & Page Industries follow a moderate working capital
policy, meaning that they have enough current assets to pay off their current liabilities.
While Vardhaman & KPR Mill seems to follow conservative policy i.e., the companies
have very high current assets and they use liberal credit policy implying a relatively
longer time span of credit period given to the debtors. This may be done to promote sales
in the company.
2. Trident & Page Industries have maintained a steady current ratio, whereas Raymond had
a negative working capital in the years 2018 & 2019, which shows that they have gone
from following an aggressive working capital policy to following moderate policy.
OPTIMUM CASH BALANCE (BAUMOL MODEL)

● The companies which has adequate level of cash/bank balance when compared with the
optimum balance according to baumol model is KPR Mills. The year 2018 was the only
year with less cash availability other wise the cash available to the company every year is
adequate. In 2022 the balance spiked up to 12073 and the optimum level was only 3835.
● Company’s namely vardhaman, page, raymond and trident have a very low cash balance
as compared to the optimum cash balance which was found out by bauol model for every
company.
● Companies with low balance may have liquidity problems in the future as they may not
have sufficient funds for their activity.
● The amount of cash and cash equivalents show a huge variation and such difference
should not exist because it can be problematic for the company to meet its cash expenses.

Inventory Analysis

TRIDENT Ltd.
From 550.8 to 879.76, raw materials—including goods in transit—have been the largest
inventory category. This shows the corporation has been stockpiling raw materials to assure
output.In contrast, work in progress has been small. The company's manufacturing and supply
chain efficiency suggests this.Finished products inventories ranged from 92.36 to 182.46.
Demand and output may fluctuate. To avoid stockouts and surplus inventory, the organisation
must carefully manage this area.Waste inventory has stayed low. This shows the firm has
managed waste and reduced material and end product waste.Stores and spares inventory
fluctuates from 40.43 to 76.70. To run efficiently, the organisation must manage this inventory,
which may include maintenance and repair materials.
It shows that the firm is efficiently managing work in progress, trash, and raw supplies. The
volatility in finished goods and stores and spares inventories emphasises the need of inventory
management for efficient operations and customer satisfaction.

VARDHAMAN TEXTILE LTD

Overall trend: Non-quick inventories have grown in value from 2018 to 2022. Increased output
or purchasing trends may explain this.
Raw materials: Inventory value decreased significantly from 2019 to 2020 and somewhat from
2021 to 2022. Due to manufacturing or supply changes.
Work-in-progress: The value of work-in-progress inventory has risen over time, showing that the
firm has invested in new items or manufacturing.
From 2018 to 2022, completed products inventory value has risen. Increased production or
demand may explain this.
Stores and spares: Over time, stores and spares inventory has expanded, showing that the
corporation is spending in equipment and machinery maintenance.

RAYMOND Ltd.

Inventory trend: Over the past five years, the value of inventories has usually climbed, indicating
that the corporation may be investing in additional manufacturing or stockpiling items.

Yearly variations: The value of inventories has varied a little bit throughout the years, which
might be attributed to modifications in production levels, modifications in demand, or other
elements.

It is important to remember that inventory values by themselves do not give a comprehensive

picture of a company's financial success or health. For a more thorough review, further financial
statements and information would be required. Additionally, the interpretation of inventory data
may be impacted by the particular industry or sector in which the firm works.

KPR MILLS LTD.

Raw Materials: From 2017 to 2018, raw materials inventories increased significantly, then
decreased till 2021. Due to manufacturing or supply changes.
Work-in-progress: The value of work-in-progress inventory has declined over time, which may
signal that the firm is more focused on finished items or has simplified manufacturing.
Finished goods: From 2017 to 2018, finished goods inventories increased, then decreased until
2021. Demand or sales may have changed.
Stock in trade: The value of stock in trade occurs only in the one year (2020) and is relatively
large, suggesting the corporation may be hoarding goods to satisfy expected demand or take
advantage of favourable pricing.
Stores, spares, packaging, and others: The value of this inventory has declined over time, which
may suggest that the firm is utilising more efficient equipment or improving its maintenance
practises.

PAGE INDUSTRY
Raw materials: The value of raw materials inventory has consistently grown throughout the
years, with a considerable increase from 2017 to 2018, suggesting that the corporation may have
been stockpiling raw materials.
Stores and consumables: The value of this inventory category has varied but has stayed low
compared to the others. The company's business or inventory management may explain this.
Work-in-progress: The value of work-in-progress inventory has grown over time, suggesting that
the firm may be investing more in production or taking longer to finish its procedures.
Completed goods: In 2020, completed goods inventories dropped significantly. The organisation
may have improved inventory management or demand or sales trends have changed.
Traded products: The value of traded goods inventory has risen over time, suggesting the firm
may be extending its product offerings or diversifying its supply chain.