A STUDY ON CASH MANAGEMENT WITH RESPECT

TO ANGLO FRENCH TEXTILES

 ABSTRACT

The title of the mission is “A Study on Cash Management of Anglo French Textiles Limited”.

The important intention is to decide the liquidity role of the AFT

The research is based totally on secondary data.

The want for money for ongoing enterprise things to do can't be overemphasized. There is hardly
ever a agency that does now not want cash. In fact, companies' money necessities differ.

A business enterprise ought to intention to maximize its assets. To reap this, a employer need to
generate adequate returns from its operations. The organization should make investments ample
dollars in present day belongings to generate sales. Current belongings are required due to the fact
income are now not right now transformed into cash. There is usually an working cycle related
with changing income into cash.

The targets are to analyze money administration and decide the effectivity of cash, inventory, bills
receivable and creditors. In addition, it is about perception the company's liquidity and profitability
situation.

These targets are done by using conducting a ratio evaluation and then drawing conclusions that
are necessary to apprehend the efficiency/inefficiency of cash.

The business enterprise has carried out inadequately over the previous 5 years. Therefore, the
enterprise is taking measures to enhance overall performance and center of attention on
neighborhood areas. The company's economic performance is low and it is borrowing dollars from
the authorities and outsiders. Liabilities occur for the company. Working capital decreases from
12 months to year. Therefore, they must take some fundamental steps to add greater quantities to
working capital.
 CHAPTER I

INTRODUCTION
INTRODUCTION

Cash administration is a quintessential thing of economic administration that is sizeable for the
sustainable operations and boom of any organization. Efficient money administration practices
make certain that a organisation has adequate liquidity to meet its temporary tasks whilst
maximizing the return on its idle cash. This is specifically vital in industries such as textiles, which
are characterised by using fluctuating demand, seasonal fluctuations and evolving market
dynamics. In this introductory section, we tackle the purpose for analyzing money management,
contextualize it inside the material industry, and supply an overview of Anglo French Textiles, the
focal point of our study.

Reason for analyzing money management:

Cash administration consists of the strategies and techniques that groups use to optimize the influx
and outflow of money and make sure that ample dollars are reachable to meet monetary tasks as
they come due. Effective money administration is quintessential for quite a few reasons:

Liquidity assurance: Sufficient money reserves are required to cowl ongoing working expenses,
debt repayments and unforeseen contingencies in order to keep liquidity and economic stability.

Working Capital Management: Cash administration is carefully associated to the administration

of working capital and consists of inventory, debtors and payables. Efficient working capital
administration ensures that enterprise things to do run easily besides immoderate capital dedication
or liquidity bottlenecks.

Optimize money flows: By monitoring money flows and outflows, businesses can pick out
possibilities to speed up receivables, lengthen payables and optimize money conversion cycles,
thereby enhancing money float efficiency.

Risk Mitigation: Effective money administration helps mitigate liquidity risks, minimize reliance
on exterior sources of financing, and guard in opposition to economic hassle at some point of
financial downturns or sudden events.
Investment Opportunities: Excess money can be strategically invested in temporary gadgets or
interest-bearing bills to generate returns, thereby maximizing the utilization of idle money
resources.

For these reasons, appreciation and optimizing money administration practices is paramount for
businesses throughout all industries to make sure monetary health, operational effectivity and long-
term sustainability.

Contextualization of money administration in the material industry:

The cloth enterprise is a applicable context for the find out about of money administration due to
its special traits and challenges. Textile businesses function in a dynamic surroundings influenced
through elements such as fluctuating purchaser demand, volatility in uncooked cloth expenditures
and seasonal fluctuations in manufacturing and sales. These dynamics at once influence money
flows and liquidity requirements, making high-quality money administration fundamental to
navigating the intricacies of the industry.

Seasonal Demand: Textile groups are regularly concern to fluctuations in demand due to seasonal
trends, trend cycles and macroeconomic factors. Managing money flows at some stage in top and
off-peak seasons is quintessential to make certain uninterrupted operations and well timed order
fulfillment.

Supply Chain Dynamics: The cloth enterprise includes a complicated furnish chain that consists
of uncooked fabric sourcing, manufacturing, distribution and retail. Effective money
administration consists of optimizing charge phrases with suppliers, managing stock tiers and
minimizing working capital necessities throughout the grant chain.

Price volatility: Fluctuations in uncooked fabric prices, change charges and enter expenses pose
a task to money glide forecasting and budgeting. Textile agencies should appoint sturdy threat
administration techniques to mitigate the influence of charge volatility on money flows and
profitability.

Competitive Pressures: The extreme competition inside the material enterprise requires
environment friendly use of economic assets to preserve competitiveness, make investments in
innovation and adapt to altering market dynamics. Cash administration performs a necessary
function in correctly allocating sources to help strategic initiatives and increase opportunities.

Regulatory environment: Textile agencies function inside a regulatory framework that governs
components such as labor practices, environmental compliance and alternate policies. Compliance
with regulatory necessities regularly entails extra economic obligations, highlighting the
significance of fine money administration in assembly regulatory obligations.

Given these industry-specific challenges, material agencies ought to undertake tailor-made money
administration techniques to meet their special operational and economic needs. A nuanced grasp
of cash administration practices in the material enterprise is necessary to become aware of high-
quality practices, tackle challenges and enhance monetary resilience.

Overview of Anglo French Textiles:

Anglo French Textiles, our place of study, is a main participant in the material enterprise with a
rich records and a numerous portfolio of merchandise and services. Founded various a long time
ago, the agency has grown into a main manufacturer, distributor and retailer of textiles, serving
each countrywide and worldwide markets.

Business Activities: Anglo French Textiles operates in a number of segments of the material cost
chain, together with spinning, weaving, dyeing and garment manufacturing. The company's
vertically built-in enterprise mannequin approves it to manipulate quality, optimize manufacturing
strategies and reply shortly to market requirements.

Product Portfolio: Anglo French Textiles affords a huge vary of cloth merchandise tailor-made
to the wishes of quite a number client segments along with garment manufacturers, outlets and
consumers. From easy textiles to gorgeous trend fabrics, the company's product portfolio displays
its dedication to innovation, best and consumer satisfaction.

Market Presence: With a strong distribution community and a sturdy presence in home and global
markets, Anglo French Textiles enjoys a aggressive gain in the industry. The company's
manufacturer equity, purchaser relationships and recognition in the market make a contribution to
its sustainable boom and market leadership.
Financial Performance: Despite the challenges introduced by way of the cloth industry, Anglo
French Textiles has proven resilience and profitability over the years. Through prudent economic
administration , operational effectivity and strategic investments, the organization has weathered
enterprise downturns and capitalized on increase opportunities.

As we start our examination of money administration practices at Anglo French Textiles, it is

essential to apprehend the company's significance inside the cloth industry. By inspecting Anglo
French Textiles' money administration techniques and their affect on the company's economic
performance, we intention to obtain precious insights relevant to the broader context of the cloth
industry.

In summary, high quality money administration is critical for organizations running in dynamic
and aggressive industries such as textiles. By contextualizing money administration in the fabric
enterprise and presenting an overview of Anglo French Textiles, this introductory area units the
stage for our in-depth evaluation of money administration practices and their have an impact on
on commercial enterprise performance. With this learn about we purpose to make a contribution
to the physique of know-how on money administration and furnish realistic tips to enhance
economic resilience and sustainability in the material sector.
NEED OF THE STUDY

The want to habits a complete learn about on money management, specially with reference to
Anglo French Textiles, arises from the quintessential function that wonderful money
administration performs in making sure the economic fitness and sustainability of organizations,
mainly these who work in dynamic and difficult industries such as the fabric industry. Several
elements underline the urgency and significance of this study:

Cash administration is imperative to the operational continuity and increase of companies. In the
material industry, which is characterised with the aid of unstable demand patterns, seasonal
fluctuations and fee fluctuations, the capacity to correctly manipulate money flows is paramount.
Textile organizations face inherent challenges such as managing working capital requirements,
optimizing stock degrees and dealing with money waft constraints in the course of instances of
crisis. Understanding and addressing these challenges via sound money administration practices is
crucial to mitigating economic dangers and capitalizing on boom opportunities.

The cloth enterprise operates in a aggressive surroundings the place environment friendly
allocation and use of economic assets can supply a strategic advantage. Effective money
administration permits organizations to finance investments in technology, innovation and market
growth initiatives, thereby enhancing their competitiveness and market positioning. By inspecting
Anglo French Textiles' money administration practices, we can pick out first-rate practices,
progressive methods and instructions realized that can be utilized to different gamers in the
enterprise to enhance their monetary overall performance and sustainability.

Given the altering regulatory surroundings and monetary uncertainties, prudent money
administration is turning into an increasing number of important. Textile corporations need to
comply with regulatory requirements, hold monetary reserves for contingent liabilities and
correctly control liquidity dangers to guard themselves from monetary difficulties. With this find
out about we purpose to investigate how Anglo French Textiles overcomes regulatory challenges,
mitigates liquidity dangers and ensures economic resilience in a unstable commercial enterprise
environment. The insights received from this evaluation can inform enterprise stakeholders,
policymakers and practitioners on the significance of adopting sturdy money administration
techniques to stand up to exterior shocks and uncertainties.
The COVID-19 pandemic has highlighted the significance of money reserves and liquidity
administration for agencies throughout all industries. The cloth sector, like many others, has
confronted furnish chain disruptions, demand fluctuations and liquidity troubles for the duration
of the pandemic. Examining how Anglo French Textiles managed its money sources all through
this length can grant precious insights into disaster preparedness, adaptation techniques and
resilience-building measures that can gain the whole industry.

SCOPE OF THE STUDY

The scope of this learn about revolves round a complete examination of the money administration
practices at Anglo French Textiles and addresses a number of dimensions of monetary
administration that are vital to the operational effectivity and long-term sustainability of the
company. Primarily, the find out about goals to analyze the administration of money flows,
liquidity and working capital, with a focal point on appreciation the challenges confronted by way
of the organisation and figuring out possibilities for improvement.

Within this framework, the learn about consists of an in-depth evaluation of money go with the
flow dynamics, inclusive of the sources and makes use of of cash, money float patterns over
exceptional time horizons, and the elements affecting money inflows and outflows. In addition,
the learn about examines working capital administration practices, evaluates the effectivity of
money owed receivable, stock and bills payable management, and evaluates complete working
capital turnover and liquidity ratios.

The scope extends to the find out about of the Cash Conversion Cycle (CCC) to measure the
effectivity of money use in the course of the manufacturing and income process. By inspecting
elements such as stock turnover, receivables series period, and payables fee period, the find out
about pursuits to become aware of possibilities to streamline operations and optimize money go
with the flow cycles.

The learn about will study the liquidity threat administration techniques employed by using Anglo
French Textiles, such as the evaluation of liquidity reserves, deposit strains and contingency plans
to mitigate liquidity risks. Particular interest is paid to assessing the organization's potential to face
up to economic shocks and unexpected disruptions such as financial downturns or grant chain
disruptions.

The find out about examines money administration techniques and insurance policies applied by
way of Anglo French Textiles, inclusive of money forecasting techniques, money pooling
preparations and money optimization strategies. Through comparative evaluation with enterprise
benchmarks and competitors, the find out about targets to become aware of fantastic practices and
areas for improvement in money management.

OBJECTIVES OF THE STUDY

• To meet money disbursement needs

• Getting to recognize the sources of money influx and makes use of of money outflow in
AFT
• To decide how short-term/current tasks of the organization are met thru the liquidity ratio.
• To comprehend the brief time period solvency role and trend
• Providing tips and pointers to enhance the liquidity role of AFT Ltd
RESEARCH METHOD

Research design

The lookup method used for the learn about is descriptive. The shape of the learn about relates to
money administration in standard and specially to the economic situation.

Data collection

Primary data

The find out about is primarily based on secondary information bought from annual reviews and
statements.

Secondary data

The learn about length for the annual reviews and economic statements is from the 12 months
2018-19 to 2022-23.

Analysis equipment for the study

During the direction of the research, the researcher used a range of equipment to analyze and
interpret the records given below.

• Cash waft assertion analysis

• Funds from running business
• Ratio analysis.
• Trend analysis
LIMITATIONS OF THE STUDY

• Due to the sensitivity and secrecy, it is challenging to get admission to some necessary
data.
• The inconsistency of the accounting durations in the years examined made it tough to
interpret the information concisely.
• It took some time to accumulate records from the finance departments.
 CHAPTER II

REVIEW OF LITERATURE
REVIEW OF LITERATURE

Henry Elrod and Megan Jacqueline Gorhum19 had performed a find out about on “Fraudulent
Financial Reporting and Cash Flows.” This learn about verified the intuitive assumption that
economic declaration customers can anticipate a sturdy superb correlation between money flows
from running things to do and income from persevering with operations for groups barring
regarded fraud cases. These outcomes confirmed that the correlations between money flows from
running things to do and salary from persevering with operations have been superb and reasonable
for organizations with recognized fraudulent economic reviews of income or bills receivable. This
statistics must be beneficial to auditors, regulators, buyers and different customers of economic
reports. For a specific company, cutting-edge historic relationships between money flows from
operations and salary from persevering with operations may additionally be examined, taking into
account modifications in that relationship that are no longer or can't be defined via reference to
modifications in business enterprise insurance policies such as income prerequisites or credit score
policies. or instances such as considerable adjustments in product mix, etc.

Patricia m. Dechow, S.P. Kothari and Ross L. Watts (2012)20 had performed a find out about on
“the relationship between earnings and money flows”. They examined the forecasts on a pattern
of 1,337 corporations and concluded that modern revenue are a higher predictor of future money
flows than the modern money flows anticipated through the model. And as the mannequin
additionally predicts, the distinction in the capability of contemporary income and modern money
flows to predict future money flows is a high quality feature of the company's predicted running
money flows. Overall, the proof suggests that the mannequin has some statistical explanatory
power.

Patricia M. Fairfield, Scott Whisenan and Teri Lombardi Yohn (2003)21 had carried out the learn
about on “the differential persistence of accruals and money flows for future working profits in
contrast to future profitability”. Their lookup is prompted through the discovering that after
accounting for modern profitability, boom occurs. Increasing long-term internet working property
and running accruals equally limit subsequent year's profitability. They argue that discovering
decrease persistence of accruals relative to money flows for one-year running earnings would
supply compelling proof of income management. On the different hand, proof that accruals are
associated to the boom of invested capital in the denominator of profitability would supply any
other rationalization for the decrease persistence of accruals for future profitability. This is due to
the influence of boom on future profitability as an alternative than salary management.

Saeed Akbar, Syed Zulfiqar Ali Shah and Andrew W Stark22 had performed the learn about on
“the cost relevance of money flows, non permanent accruals and long-term accruals in the UK”.
This learn about examines whether or not special income splits comprise mixtures of money go
with the flow as a measure of overall performance and measures of contemporary and long-term
accruals enhance the capacity to give an explanation for market values in the UK in contrast to the
use of profits alone. Using a valuation model-based methodology and the use of a UK pattern of
non-financial corporations for the years 1993 to 2007, their effects recommend robust guide for
the declare that money flows can have incremental fee relevance relative to income or capital
flows. Conversely, money flows can have a separate price relevance from the complete and in
particular the contemporary provisions. There is relatively much less constant proof that temporary
and long-term accruals can have separate cost relevance, however the outcomes are nonetheless
truly nice in this regard. They consequently conclude that the UK money drift announcement
affords beneficial records for UK traders when valuing companies. Additionally, the requirement
for a declaration of money flows, as hostile to a announcement of money flows, improves the
statistics content material of monetary reviews in the UK.

Mohsen Dastgir, Vali Khodadadi and Maryam Ghayed (2010)23 had carried out a learn about on
“Cash drift valuation the use of the capital money waft method” and in contrast it with the free
money go with the flow technique and the adjusted current fee approach in organizations listed on
the Tehran Stock Exchange . The purpose of this survey is to introduce the capital-cash waft
technique for evaluating agencies and confirming their effectivity in the Iranian market by using
evaluating it with two famous strategies accessible in the market:

Free money go with the flow and adjusted current value. For this purpose, fifty four groups listed
on the Tehran Stock Exchange had been chosen as a statistical sample. The required data and
statistics have been amassed thru exchanges and different present economic sources and web sites
and examined by way of paired Student's t-test. The take a look at consequences confirmed that
making use of capital money glide to enterprise valuation, the usage of an gorgeous cut price
charge and taking into account the cost of tax refuge in the calculations, would produce the equal
outcomes as the two strategies cited above.

Vladimir Gatchev, Todd Pulvino and Vefa Tarhan24 had carried out a find out about on “the
interdependent and intertemporal nature of monetary decisions: an software to cash float
sensitivities”. Based on this study, its outcomes are intuitive in the context of the relative
adjustment fees of funding and financing. Capital charges commonly replicate long-term funding
applications and, absent extreme tensions in economic markets, are not going to be affected by
means of temporary money float fluctuations. In comparison, financing choices are a lot much less
high-priced to alternate and consequently symbolize a more cost-effective choice to easy out
fluctuations in money flows. This instinct is constant with the principal findings introduced in this
paper – that financing/cash glide sensitivity is a great deal higher than investment/cash float
sensitivity, regardless of economic condition.

The BDC's Research and Market Intelligence Team (2014)25 carried out a find out about on the
theme of “cash waft management”. You figure out to evaluate some of the applicable literature on
money go with the flow management, take a nearer seem at the conduct and attitude of Canadian
enterprise leaders, become aware of who is concerned in and responsible for the quite a number
elements of money waft management, and perceive some of the equipment and equipment used
Techniques along with key overall performance indications and benchmarking. The expression
“Cash is King” is famous for a reason. Cash float administration is as critical to the success of a
organization as a worthwhile enterprise model. In this report, the BDC crew desired to spotlight
the significance of money go with the flow administration for small and medium-sized businesses.
Their survey observed that a large share of Canadian organizations do no longer exercise fantastic
money go with the flow management. Due to its significance and the reality that the equipment
required are fantastically inexpensive; More entrepreneurs ought to undertake this practice.
Implementing tremendous money glide administration starts offevolved at the top and requires
executives to recognize and take part in the a number components. These aspects encompass
getting ready money drift forecasts; assessment with genuine results; Identifying and monitoring
KPIs; and benchmarking with opponents However, enterprise leaders need to first improve their
monetary understanding and no longer hesitate to are searching for the assist of outdoor advisors
to enhance their appreciation and reap an backyard perspective.
Gilbert Uwonda, Nelson Okello, Nicholas G. Okello (2013)26 had carried out a find out about on
“Cash Flow Management Usage by using Small and Medium Enterprises in Northern Uganda”
with the purpose of managing money glide so that money inflows anywhere Accelerate as viable
and lengthen money outflows till they manifest Invest extra money to reap a return, borrow money
on the first-class feasible phrases and preserve an most appropriate money stability that is neither
immoderate nor deficient. The lookup effects confirmed that the carrier sectors of the studied
SMEs confronted an uphill combat from the beginning, in the main due to money drift
administration problems, but stabilized after 5 years. Most of these carrier zone SMEs examined
had been unincorporated agencies running as sole proprietorships or partnerships, whilst others
solely registered with their expert associations. The failure of non-public firms inside the first 12
months of operation is due, amongst different factors, to the reality that a giant range of non-public
organizations are registered. The 2d impediment to money glide administration is monitoring
money flows. As can be viewed from the lookup results, many of the SME sectors studied have
been in a position to put together budgets however failed to meet them at some point of the
implementation periods, whilst different SMEs have been unable to do budgetary evaluate and
budgetary control. A 0.33 barrier highlighted in the learn about effects associated to money waft
management was once money glide controls. As the learn about consequences show, a giant
quantity of SME proprietors are overly reliant on commercial enterprise profits to live to tell the
tale and cowl different non-business expenses.

Marios Tittonis (1995)28 had performed a find out about on “cash drift management” with the
intention of 1. gathering facts and examining the elements that incorporate money glide problems,
two figuring out methods to deal with these elements and three the The consequences of money
drift on the company's monetary statements must be examined.
 CHAPTER – III

COMPANY PROFILE
COMPANY PROFILE

At the quit of the nineteenth century, a material mill known as Rodier Mills used to be
headquartered in Puducherry, one of the small cities in French territory on the southeast coast of
India on the Bay of Bengal. It was once established and included in 1898 via Anglo French Textiles
Limited, a British material company.England

The mill's shareholders grew to become stressed over the years as their funding was once in a
pretty far-off place, in French territory, and they had been involved about the safety of their
property in Puducherry.

After the departure of the French and the annexation of Puducherry to India in 1958, the mill was
once offered to Best and Crompton, an English administration company. In 1963 they offered their
shares in the manufacturing facility to Sri CRRamachaki, a material industrialist from Madurai.
The mill prospered underneath this administration and was once in a position to amplify with the
development of Units B and C.

After the demise of Sri CR Ramachaki, mismanagement, household troubles and ongoing labor
unrest ensued, subsequently main to the sale of the manufacturing facility in 1982 to Mr. Jatia of
the Somani Group, a Sri Lankan cloth dealer Bombay. Unfortunately, due to the ongoing labor
unrest, Mr. Jatia additionally failed to manipulate this mill and he gave it up in 1983.

Due to public appeals, the authorities of Puducherry took over the mill in 1985. It was once solely
in June 1986 that the mill was once opened. The mill grew to be a state-owned corporation and a
unit of the Pondicherry Textile Corporation Ltd. and the authorities has allotted dollars to it for
renovation, enchancment and modernization measures. Many

Technological advances had been carried out with the introduction of projectile loans from the
USSR and reimbursement loans from Lakshmi factories in Coimbatore.
AFT at first began with spinning and weaving mills that solely produced uncooked materials. It
used to be solely between 1964 and 1970 that enormous modernization packages have been
implemented. This blanketed the set up of a state-of-the-art computerized savings and technique
house, ensuing in extended effectivity in each manufacturing and quality.

The uncooked fabric for the manufacturing of fabric is cotton and the merchandise are made of
one hundred percent cotton. The sequence of operations to produce fabric consists of carding,
spinning and weaving, as properly as processing to cloth production.

AFT's uniqueness merchandise are mattress linen, pillowcases, garments, inclusive of ready-made
clothes such as cotton shirts, trousers, shorts, handkerchiefs and kitchen aprons.

AFT continues a fantastic administration gadget that ensures that its merchandise and offerings
meet the necessities of its clients at all times. Recently, AFT acquired ISO 9002 issued with the
aid of the Directorate General, Bureau of Indian Standards. The sturdy focal point on exceptional
and dedication has helped the company's fabric USAfind Middle Easttheir way into the
Africafashion -conscious markets of Australia, UK, France, Italy, Switzerland, Belgiumand
Germany.
 CHAPTER – IV

DATA ANALYSIS

&

INTERPRETATION
DATA ANALYSIS AND INTERPRETATION

CURRENT RATIO

Table number: 6.1

CURRENT CURRENT
YEAR CONDITIONS
ASSETS LIABILITIES
2018-2019 65,84,62 20,32,27 3.24
2019-2020 68,99.66 29.61.12 2.33
2020-2021 58,71.06 26.16.37 2.24
2021-2022 56,48,37 26.84.73 2.1
2022-2023 60,09,83 45.36.09 1.89

RATIOS

3.5

2.5

1.5

0.5

0
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Interpretation:-

The above ratio suggests the role of the company. The fashionable norm for this ratio is 2:1. From
the above table, the present day ratio for the 12 months 2018-19 is commonly 3.24 and for 2022-
23 it is 1.89. It's now not a accurate position.

FAST RATIO

Table number: 6.2

CURRENT CURRENT
YEAR SHARE RELATIONSHIP
ASSETS LIABILITIES
2018-2019 65,84,62 20,32,27 36,32.11 1.45
2019-2020 68,99.66 29.61.12 29,63,44 1.33
2020-2021 58,71.06 26.16.37 21.77.15 1.41
2021-2022 56,48,37 26.84.73 25.93.75 1.14
2022-2023 60,09,83 45.36.09 30.88.89 0.92

RATIO

1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Interpretation:-
The popular norms for speedy ratio are 1:1. From the above table, the rapid ratio for the years
2019-2023 is a fantastic function and used to be 0.99:1 in 2023-24. This stage is no longer a nice
level.

INVENTORY TURNOVER RATIO

Table number: 6.3

YEAR COST OF SALES AVERAGE STOCK RELATIONSHIP

2018-2019 10,15,99 39.54.11 0.25
2019-2020 92.15.09 25,70,29 3.59
2020-2021 91.19.10 25,70,29 3.55
2021-2022 90,79,10 28,41,32 3.2
2022-2023 93,88,64 28,41,32 3.3

RATIO

4
3.5
3
2.5
2
1.5
1
0.5
0
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Interpretation:-
The stock turnover ratio represents the operational effectivity of the competition. From the above
table, it can be viewed that in 2019 the ratio used to be 0.25 instances and the income overall
performance was once very poor. But in 2020 the ratio is 3.59; It's precise stock management. In
2023 the ratio is 3.30, however in contrast to 2020 it is lower.

DEBT TURNOVER RATIO

Table number: 6.4

YEAR NET SALES DEBTOR RELATIONSHIP

2018-2019 83,94.08 8,19,84 10.24
2019-2020 71,94,52 7,26,86 9.9
2020-2021 66,77,57 7.11.81 9.38
2021-2022 70.11.25 5.82.93 12.03
2022-2023 75,93,31 10.66.83 7.12

RATIO

14

12

10

0
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Interpretation:-
From the desk above, the ratio is step by step decreased from yr to 12 months (2019-20). It
indicates that the turnover fee is low, terrible money owed are minimized and the activity loss on
capital is minimized.

Working capital turnover ratio

Table number: 6.5

YEAR SALES WORKING CAPITAL RELATIONSHIP

2018-2019 83,94.08 13,948.80 2.13

2019-2020 71,94,52 3.49.06 2.06
2020-2021 66,77,57 27,60,25 2.42
2021-2022 70.11.25 121,54,59 3.25
2022-2023 75,93,31 13,50,78 5.62
 RATIO

0
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Interpretation:-

From the desk above, the working capital turnover ratio in 2023 is 5.62. A very excessive working
capital turnover is 2.13 to 5.62. According to this concept, it is now not effective.

RATIO OF CURRENT ASSETS TO FIXED ASSETS

Table number: 6.6

CURRENT
YEAR CAPITAL ASSETS RELATIONSHIP
ASSETS
2018-2019 65,84,62 35,54,97 1.85
2019-2020 68,99.66 34,52,28 1.99
2020-2021 58,71.06 33,94,31 1.73
2021-2022 56,48,37 34,91,13 1.62
2022-2023 60,09,83 37,81,88 1.59
 RATIO

2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Interpretation:-

From the above desk we can see that the relationship between modern property and constant assets.
The ratio of modern-day belongings to constant property is between 1.62 and 1.85 at some stage
in the year. It is now not an fantastic commercial enterprise operation.

CASH TO WORKING CAPITAL RATIO

Table number: 6.7

YEAR CHECKOUT WORKING CAPITAL RELATIONSHIP

2018-2019 1589 13948.8 0.11

2019-2020 1784.21 3940.66 0.45
2020-2021 2590.96 2760.24 0.93
2021-2022 4869.35 12154.59 0.4
2022-2023 2475.03 1350.78 1.83
 RATIO

2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

20000
0

Interpretation-
From the desk above, the ratio regularly decreases from yr to 12 months (2019-2023). It is viewed
that a low money to working capital ratio minimizes the working capital and the ratio decreases.

Cash to Sales Ratio

Table number: 6.8

YEAR CHECKOUT SALES RELATIONSHIP

2018-2019 1589 8394 0.18
2019-2020 1784.21 7194.52 0.24
2020-2021 2590.96 6677.57 0.38
2021-2022 4869.35 7011.24 0.69
2022-2023 2475.03 7593.31 0.32
 RATIO

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

interpretation

From the above desk it can be viewed that the money to income ratio will increase for the duration
of the length 2019-2023 and decreases at the quit of the year. So the money to income ratio is now
not good.

CASH RATIO

Table number: 6.9

CURRENT
YEAR CHECKOUT RELATIONSHIP
LIABILITIES
2018-2019 1589 2032.27 0.78
2019-2020 1784.21 2961.12 0.6
2020-2021 2590.96 2616.37 0.99
2021-2022 4869.35 2684.73 1.81
2022-2023 2475.03 4536.09 0.54
 RATIO

2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

interpretation

From the above table, it can be considered that the ratio of money to modern-day liabilities is no
longer steady and the ratio adjustments each and every year. The ratio does no longer decrease.

RATIO OF SHORT ASSETS TO TOTAL ASSETS

Table number 6.10

CURRENT
YEAR TOTAL ASSETS RELATIONSHIP
ASSETS
2018-2019 6584.62 10139.59 0.64
2019-2020 6899.66 10351.94 0.66
2020-2021 5871.06 9265.37 0.63
2021-2022 5684.37 9139.5 0.62
 2022-2023 6009.83 9791.71 0.61

RATIO

0.66
0.65
0.64
0.63
0.62
0.61
0.6
0.59
0.58
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Interpretation:

The key figures exhibit the ratio of modern property to complete assets. There are no main
variations between the prerequisites in each year.

Ratio of loans and advances to current assets

Table number: 6.11

LOANS AND
YEAR CURRENT ASSETS RELATIONSHIP
ADVANCES
2018-2019 5436.5 6584.62 0.82
2019-2020 4873.37 5981.72 0.73
2020-2021 3911.33 5871.06 0.66
 2021-2022 2654.08 5483.17 0.48
2022-2023 1103.03 6009.83 0.18

RATIO

0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Interpretation:

The above desk indicates the ratio between loans and advances and the ratio of contemporary
assets, and the ratios regularly reduce from the yr 2000 to the give up of the year.

CALCULATION OF OPERATIONAL FUNDS AND OPERATIONAL CASH FOR THE

YEAR.

Table 6.1.1

DETAILS 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

net profit 139,45,65 159,64,21 183,91,41 204,59,27 222,54,59

(Add) Depreciation 28,23,640 56,399 7,58,484 4,58,077 20,97,973

Funds from 42,18,205 16,52,820 25,97,625 04/25/004 43,23,432

operations

DETAILS 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Current assets

Stocks 4,16,59,987 4,95,13,535

Various debtors 4,83,89,460

Cash and bank 9,12,22,356 11,40,93,719

Loans and
advances
58,29,922

Other liabilities 4,05,43,000 2,30,25,000

(less) current
liabilities

Other liabilities 9,50,42,000 1,37,80,000 11,65,26,000

Stocks 6,43,98,656 6,68,67,061 7,86,28,807

Various debtors 1,54,74,575 92,98,061 15,05,184 1,28,87,761

Cash and bank 1,38,98,359 4,77,77,004 13,62,11,068

Loans and 64,23,980 88,27,765 32,63,845 7,44,53,830

advances
 CFO 8,86,71,197 6,34,37,877 7,98,35,115 3,60,48,663 8,03,80,243

Cash flow statement

inflow 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023

Initial
stock
32,56,91,320 43,67,54,492 1,59,64,21,899 183,91,41,943 204,59,27,460

CFO 8,86,71,197 6,34,37,877 7,98,35,115 3,60,48,663 8,03,80,243

Increase
in loan
resources

4,04,61,798 82,46,495 75,78,595

Saleof
assets
24,82,299 52,90,476 21,44,781 21,85,005 17,09,754

Increase
in share
capital
19,16,01,906 26,72,49,544 15,35,38,861 17,64,00,000 12,54,08,000

In total 70,89,08,520 77,27,32,389 1,84,01,87,157 2,06,13,54,206 2,25,34,25,457

drain

Buy 27,21,54,028 68,75,62,363 10,46,008 1,54,26,746 2,55,29,229

 Decrease
in loan
13,61,27,147 24,36,563

Final
balance
43,67,54,492 1,59,64,21,899 1,83,91,41,943 2,04,59,27,460 2,22,54,59,665

In total 70,89,08,520 77,27,32,389 1,84,01,87,151 2,06,13,54,206 2,25,34,25,457

Inference :

This desk suggests that ANGLO FRENCH TEXTILES' money glide statements are supposed to
be efficient. The company's money influx must extend yr after year. The running sources ought to
additionally range from yr to year. The business enterprise need to expand its share capital. This
have to be used as correctly as viable for the subsequent 12 months in order to decrease the
mortgage amount.
TREND ANALYZES

Trend evaluation is very beneficial for conducting a comparative learn about of monetary
statements over quite a few years. This method takes data for countless years and takes one yr
(usually the first year) as the base year. Each aspect of the base 12 months is taken as a hundred
and on this basis; the proportion for the different yr is calculated.

When examining trends, the statistics contained in the stability sheet is appropriate for analysis.
Such a presentation contributes to a higher grasp of the annual monetary statements.
TREND ANALYSIS OF ANGLO-FRENCH TEXTILES

FOR THE END OF BUSINESS FROM 31-03-2000TO31-03-2005

Trend % base year 2000

FINANCIAL 2018 2019 2020 2021 2022 2023

ASSETS
CURRENT
ASSETS

Stocks 100 85 70 51 61 73

Various debtors 100 124 110 108 88 161

Cash and bank 100 235 404 383 313 111

Loan advances 100 112 99 81 74 228

100 108 113 97 93 99

CAPITAL
ASSETS

country 100 103 103 103 103 102

Keep the rental 100 99 98 97 96 95

agreement

Building 100 91 87 83 81 77

railroad 100 85 70 55 ---- ----

Attachment 100 88 102 89 110 137

Furniture 100 84 80 69 54 53

office equipment 100 95 87 78 70 62

Motor vehicles 100 67 174 179 211 493

Computer 100 179 143 177 293 238

equipment
Interpretation:-

a) Current belongings are challenge to fluctuations in all years (2000 – 2005). The proportion
in 2005 is ninety nine Compared to one hundred in 2000, the distinction is 1%. Compared
to 2002, the price is 113%, which is the absolute best share of present day assets.
b) Fixed belongings fell by using 99% in 2003. Compared to the yr 2000, there are a hundred
In 2004 and 2005, Anglo French Textiles Limited's use of constant belongings is increased.
In 2004, the utilization of constant belongings used to be 103. In 2005, the share of constant
belongings was once improved to 106.
c) The agency has suffered losses over the years. So the corporation has correctly improved
the utilization of constant belongings and multiplied modern assets. It will convey income
for the agency .
 CHAPTER – V

FINDINGS

SUGGESTIONS

CONCLUSION

FINDINGS

1. The regular requirements of the contemporary ratio are 2:1. But at AFT, the height ratio is
no longer effective. As a result, the transient solvency of the agency is no longer good.
2. The elegant requirements for velocity ratio are 1:1. The AFT Limited Quick ratio is beneath
universal standards. The monetary energy of Anglo-French Textiles Limited is
consequently no longer effective.
 3. The agency no longer makes use of stock correctly. The employer ought to center of
attention on sales.
4. The debt ratio has misplaced its position in every of the remaining 5 years. It displays the
uncertainty of the long-term financial state of affairs of the Anglo-French fabric industry.
5. The cash-to-sales ratio used to be steadily decreased from 12 months to the year. In 2005,
it used to be low (0.32). This suggests inefficiency and usual overall performance of the
company.
6. When inspecting trend evaluation tools, we found the following:
7. Current belongings are minimized in contrast to the base year.
8. Fixed property elevated in 2023 (106) in contrast to the base 12 months and consecutive
years (2019-2023).

SUGGESTION AND RECOMMENDATION

1. AFT should additionally strive to limit its stock to a excessive level. This will make bigger
the function of liquidity and expand the profitability of the company.
2. The group can additionally work to maximize their income via a new graph and superb
advertising efforts. Good consequences are obtained.
 3. The agency can additionally appear to enhance its working capital function via long-term
sources. This creates a free glide of money. So that the economic administration and
ordinary overall performance of the business enterprise are properly positioned.
4. The organization ought to provide its clients increased credit options. This will end result
in perfect profits and correct profit.
5. Business agencies have to focal point on neighborhood income instead than exports. This
will enhance the group's revenues and profitability.
6. The modern-day ratio is plenty decrease than 2:1. In case of insufficiency, measures can
be taken to enhance the working capital situation. This will get a proper result.
7. The business enterprise might also try to make fine use of consistent actual estate. This
leads to higher productiveness and extra profits.

CONCLUSION

From the necessary assessment added to the study. It is apparent that the everyday economic
administration of the organisation is no longer notable in phrases of profitability, however the
enterprise can be maximized through taking strict measures that enhance the operations of the
company.
Since the business enterprise is dealing with losses, the administration desires to take numerous
measures to enhance its profitability. Clothing is one of the easy human needs; I conclude that
AFT disorder is no longer fatal. The treatment for such a hassle is for the agency to observe the
prescription and comply with the recommendation of the professor to the management, so that the
corporation can return to a beneficial position as quickly as possible.