“TO MAINTAIN ACCOUNTS AND FINANCIAL STATEMENTS OF M/S

GIMATEX INDUSTRIES PRIVATE LIMITED, HINGANGHAT, DIST-WARDHA”

BY

Mr. Noor Qureshi

AT

M/S GIMATEX INDUSTRIES PRIVATE LIMITED (TEXTILE COMPANY)

UNDER SUPERVISION OF

MR. RAHUL BOKDE

(GM-FINANCE)
UNDER GUIDANCE OF

DR. RAJANI KUMAR

FROM

Green Heaven Institute of Management and Research, Nagpur

 ABOUT THE COMPANY:
Gimatex Industries Pvt. Ltd., established in the year 1993, was set up with a vision “to provide premium quality
textile products to its customers using the Latest in textile technology”. The company continuously invests in upgraded
technology, people and infrastructure. Run by a highly dynamic and experienced management and supported by a strong
skilled workforce of 5000 people the group has become a strong player in the market and a name to reckon with.
 IT’S PRODUCTS & SERVICES:
- Cotton Bale, Yarn, Grey Fabric, Finished Fabric, Garments, Hulls, Refined Soyabean Oil, Cotton Seed Oil, Meat
 SECTOR SIZE AND MAJOR PLAYERS:
The Indian technical textiles segment is estimated at $16 bn, approximately 6% of the global market. The textiles and
apparel industry in India is the 2nd largest employer in the country providing direct employment to 45 Companyion
people and 100 Companyion people in allied industries.
1) “Arvind Ltd” Processing Capacity 240 MMPA with Revenue of Rs. 7,229 Cr
2) “Vardhman Textiles Ltd” Processing Capacity140 MMPA with Revenue of Rs. 6,706 Cr
3) “Welspun India Ltd” with Revenue of Rs. 6,828 Cr
4) “Raymond Ltd” Processing Capacity 110 MMPA with Revenue of Rs. 6,767 Cr
5) “Trident Ltd” with Revenue of Rs. 5,394 Cr
6) “Nitin Spinners Ltd” Processing Capacity 240 MMPA with Revenue of Rs. 1,226 Cr
PERFORMANCE & MARKET SHARE:

- India is the 2nd largest manufacturer and exporter in the world, after China. The sector
contributed 12% to India’s export earnings in FY20.

- It contributed 13% of the industry production in FY20. Textiles industry has around 4.5 crore
employed workers including 35.22 lakh handloom workers across the country.

- The domestic textiles and apparel market stood at an estimated US$ 100 billion in FY19. India
has a share of 5% of the global trade in textiles and apparel.

- It contributed 2.3% to the GDP of India and employed more than 45 Companyion people in
FY20. Traditional sectors contribute to more than 75% of total textiles production in the country.

- The textiles sector has witnessed a spurt in investment during the last five years. The industry
(including dyed and printed) attracted Foreign Direct Investment (FDI) worth US$ 3.45 billion from
April 2000 to June 2020.
PROBLEMS FACED BY THE SECTOR IN GENERAL AND THE COMPANY IN
PARTICULAR:
Shortage in supply of raw material:
 Shutting down some units in China and Europe due to pollution issues has resulted in an
unprecedented rise in prices of basic raw materials in international markets. 
Increase in cost of raw material:
 Prices have seen an upward increase after many units in China were shut down due to pollution
norms. The rise in prices of imported raw materials has increased the prices of dyes.
Pressure to meet stringent social and environmental norms:
 Environmental compliance often isn’t at the top of textile and garment importers’ concerns.
 Failing to comply with environmental regulations can put supply chain in jeopardy, as pressure
mounts for the apparel industry to improve environmental compliance efforts.
Infrastructure bottlenecks:
 The low quality of India’s infrastructure, continues to lag behind that of many other Asian
countries.
Lack of efficiency due to manual work:
 Unlike in developed countries, textile factories in India are not fully automated and
remain labour-intensive.
Unorganized weaving sector:
 Approximately 95% of the weaving sector in India is unorganized in nature.
 The decentralized power loom and hosiery sector contributes 85% of total fabric
production.
 In terms of technology adoption in the weaving sector, India has only 2% share in global
shuttle-less looms installed capacity. 
Uneven regional development:
 The country’s textile industry is concentrated in a few pockets of Gujarat and Maharashtra
in the west and Tamil Nadu and Karnataka in the south.
 A large proportion of workers employed by these units comes from Bihar, Uttar Pradesh, and
West Bengal.
WEEK WISE DETAILS OF THE WORK DONE INCLUDING THE DETAILS OF ANY
SPECIFIC TASKS OR PROJECTS ASSIGNED BY THE COMPANY:

Month Week Particular's

Week 1 Understanding & Interpretations of Sanction/Proposal Reports &
Documentation's (Working Capital/Term loan/Over Draft) such as
Hypothecations, Guarantee, Stamp Duty etc.

Week 2 Understanding & Preparation of Stock Statement, Debtors Ageing &

Outstanding, Creditors Ageing Outstanding AND Bank Reconciliations AND
Aug-22 Preparation of Daily fund flow statement

Week 3 Interest Calculation of Cash Credit Limit on Monthly basis, Ratio Analysis

Week 4 Scrutiny of General ledger

Week 5 Scrutiny of Sundry Creditors ledger & Reconciliation
Month Week Particular's
Week 6 Scrutiny of Sundry Debtors ledger & Reconciliation
Week 7 Working of Depreciation as per Income Tax Act, 1961 & as per The Companies Act,
2013
Week 8 Learning of Journal Entry Posting, Purchase Voucher Entry posting, Expenses Entry
Sep-22 posting, Cash payment Entry posting, Bank Entry posting

Week 9 Fixed Assets Working, Understanding of Fixed Asset Capitalization Process, and
making of detailed statement of Fixed Assets

Week 10 Understanding & preparation of Provisions for Expenses for Half year end balance
sheet
Week 11 Understanding & Preparation of Financial Statements as per The Companies Act,
2013 for Half year ended Sep-22 and preparation of Debtors Creditors Outstanding
Oct-22 List in agreement with Balance Sheet
Week 12 Carrying out supplier reconciliation, Reviewing entered data for identification of
any data entry error, Preparation, generation and posting of Tax Invoices relating to
payee
Week 13 Working of Advance Tax and Payment
KEY LEARNING:
 Learned Preparation of Stock Ageing
 Learned calculations of Debtors Creditors Ageing
 Bank Reconciliation
 Documentations of Term Loan, Cash Credit, Over Draft facility,
 KYC related Documentation
 Opening of Current account of Corporates
 Ratio Analysis
 Dealing with Bank staff & Manager
 Monthly calculation of Interest on Cash Credit Limit
 Dealing with Company Staff
 Calculation of Advance Tax working
 Payment of Advance Tax
 Preparation of Financial Statements
 Scrutiny of Debtors & Creditors Ledger and Reconciliations
 Scrutiny of General Ledger
FINDINGS:
1) The Company has less spindle utilization due to various reasons like labour shortage, Maintenance,
Repairs. The Company spindle utilization is in between 80 % to 87 %.
2) The variable cost of the company is increasing due to the miss management of the workforce and
resources. Many Key Peoples leaving organization very frequently due to better opportunity outside.
SUGGESTIONS:
1) Electricity consumption is going up day by day Company should take necessary steps to reduce the
power consumption
2) The saving in the cost of raw material is important factor to increase direct profit. In this regard
Company should take various research activities and trial to reduce mixing cost by using high quality
cotton with minimum cost.
3) There is also necessary to reduce waste generation
4) Day by day labour charges are also becoming expensive. In order to reduce labour cost the Company
has to modernize labour intensive process.
5) The Company may follow direct purchases if possible. Besides, reuse of waste cotton be done to
minimize cost ofraw material.
6) Since the power cost per unit of Captive power generation is lower spinning Company should start
the use of Captive power and save money in large extent.
CONCLUSION:
Gimatex Industries is one of the top private Industries in Vidarbha. Its main motive is to serve best quality
service throughout the world. This report reflects a clear idea of Company History and its financial
performance. I gained my knowledge for prepare my internship report by doing internship in Gimatex
Industries, Hinganghat, Dist- Wardha. My objective was to know about their functions, products and
services and Corporate Financial strategy and structure. In Gimatex Industries they are enjoying Term
loan facility, Cash Credit, Forward Contracts, Letter of Credit, Bank Guarantees Current Account.
To identify the success of any organization it is required to give keen sight in each section of the work
place. In Textile Business there are 5 broad categories these are Gining, Spinning, Weaving, Processing
and Garmenting and Gimatex Industries involve in all 5 categories which make it A Integrated Industry.
Gimatex Industries is a Exporter of Yarn and Grey. Gimatex Export are near 500Cr in rupee.
Gimatex Industries is a promising company. At the beginning of the business, every company has to go
through the difficult path of survival. To impress or attract the customer, to achieve their confidence, the
company must execute some improvements in its marketing and operational areas.
As far as my Learning is concerned, I leaned in my Intern-ship how corporate work and how corporate
finance are structured. I have leaned dealing with Corporate professional staff, get chance of
understanding of there point of view and way of working. I leaned the Textile process and how it works.
Due to my Internship I get a chance to look closely the process of conversion of Raw cotton into Cotton
bale, Cotton bale to Yarn, further Yarn to Grey cloth and at Final stage Grey cloths to Final Finished
product that is cloths.
TEXTILE
&
APPAREL
INDUSTR
Y CHART
OVERVIE
THANK YOU