PRESENTATION ON OSWAL WOLLEN MILLS

SUBMITTED BY

The Nahar Group

Nahar Group came into existence in 1949. It was established with the initial efforts of 3 Oswal Brothers Sh. Vidya Sagar Oswal, Sh. Lachman Dass and Sh. Rattan Chand Oswal. Total turnover of Nahar Group is 6000 crore.

There are 7 companies under Nahar Group.

Nahar Group of Companies

OSWAL WOOLEN MILLS LTD. NAHAR INDUSTRIAL ENTERPRISES LTD. NAHAR SPINNING MILLS LTD. NAHAR POLYFILMS LTD. NAHAR CAPITAL&FINANCIAL SERVICES LTD. MONTE CARLO FASHION LTD. COTTON COUNTY NAHAR RETAIL LTD.

VISION The excellence is always an ongoing journey never Destination MISSION To give the best to the customers at most competitive price

OSWAL WOOLEN MILLS LTD

It was established in 1949 by Sh.Vidya Sagar Oswal. It is manufacturing all type of Blended worsted yarn, weaving yarns, blankets, lohis, shawls, garments, etc .
The main operations of the company are at Ludhiana.

MAJOR EVENTS OF OWM

YEAR 1949

EVENTS The Co. was incorporated as Public Ltd. Co. with a woolen hosiery knitwear unit. Commenced export of knitted hosiery. Launched Monte Carlo brand. Established an OWM export house. Recognized as one of first five trading house under EXIM policy 1981-1982. Launched Canterbury brand. The first phase of Denim plant at Larlu was established. Started retail for franchises of retail outlets.

1968 1974-1985

1995

2006

Board of Directors

Mr. Jawahar Lal Oswal

Mr. Amarjeet Singh Mr. Dinesh Oswal Mr. Kamal Oswal Mr. Sandeep Jain Mr. Dinesh Gogna Dr. (Mrs.) H.K. Bal Mr. O.P. Sahni Mr. K.S. Maini Dr. Suresh Kumar

Chairman-Cum Managing Director Director Director Director Executive Director Executive Director Additional Director Additional Director Additional Director Additional Director

PRODUCT PORTFOLIO
Wool Yarns Textile fabrics Hosiery knitwear products Cotton Garments Denim fabrics

BRANDS OF OWM

EXPORT MARKET

U.S.A. UNITED KINGDOM Germany Russia Japan Australia Singapore Taiwan South Africa Canada New Zealand Thailand Hong Kong

COMPETITORS

COMPETITORS OF WOOLEN/BLENDED WORSTED YARN Vardhman Textiles Limited Jayshree Textiles Limited Malwa Cotton Mills Limited COMPETITORS OF DENIM FABRIC Arvind Mills Limited Aarvee Denims Limited Raymond Limited

VARIOUS DEPARTMENTS

Quality control Human Resource Department Finance Department

Marketing Department

Functions of Departments
Quality Control

Human Resource
Maintaining employees records.
Labour cost reporting. Time keeping. Various other functions like Recruitment, Selection and training.

To enhance customer satisfaction Cost reduction in operation. Regular review and upgradation of technology.

Finance Financial planning & controlling. Financial Accounting. Financial report. Capital structure & decisions. Cash management. Audit &tax administration.

Marketing

Market survey. Developing Marketing Strategy. Providing feedback to production department. Handling enquiry orders through letters & phone calls.

SWOT ANALYSIS
STRENGTHS Extensive experience of promoters. Good brand image. Automated machines of latest technology. Good training programs. Commitment of employees.

WEAKNESS Long Hierarchy.

Dependant upon foreign producers for greasy wool. Risks in relation to outsourcing of cotton segment of MC products.

OPPURTUNITIES

THREATS

Fabrication for various companies likes NIKE, MARKS AND SPENCER, GAP, WILLS, etc. Manufacturing of kids garments. Best quality goods can quote for best selling price.

Mushrooming and upcoming of small hosieries in Ludhiana. Seasonal demand for their major product i.e. pullovers.

LEARNINGS

Knowledge about financial analysis. Knowledge about Ratio analysis.

Knowledge about Trend analysis.

FINANCIAL ANALYSIS

Financial analysis is the process of identifying the financial strength & weaknesses of Co. by properly establishing relationship between variables of balance sheet and P& L account. The purpose is to judge liquidity, profitability & financial soundness of enterprise.

WORKING CAPITAL

Working Capital is mainly difference between current assets and current liabilities. WC = CA CL It tells about daily operations of the business. Concepts of WC Gross working capital Net working capital

NEEDS OF W.C
The need of W.C arises due to time gap between production & realization of cash from sales. For the purchase of raw material. To pay wages & salaries. To incur day to day expenses. To provide credit facilities to customers. To maintain the inventories.

RATIO ANALYSIS
Ratios are mostly used in practice to access financial performance and condition . The main objective is to help management in analysis the financial statement to get adequate information useful for performance of various functions.

YEARS CA CL

2012 Audited 43558.15 14978.99 2.9

2013 Provisional 54059.51 18281.59 2.95

2014 Projected 87617.69 28291.51 3.1

INTERPRETATION - The companys current ratio is more than standard (2:1) i.e. 2.9 in 2012 ,2.95 in 2013, 3.1 in 2014 so company is in great position and current assets are well maintained and liabilities are under full control.

Years

2012 Audited

2013 Provisional 23084.88 18281.59 1.26

2014 Projected 34574.69 28291.51 1.22

Liquid assets 19996.98 CL Ratio 14798.99 1.33

INTERPRETATION - The companys quick ratio is more than standard ratio 1:1 i.e.1.33 in 2012 which is decreased to 1.26 in 2013 & 1.22 in 2014 still more than standard limit, shows company has strong financial position.

YEARS

2012 Audited

2013 Provisional

2014 Projected

Debtors -domestic -export Sales

8947.39 137
94781.96 35

11413.56 58
129881.75 33

15434 234.2
176536.42 33

INTERPRETATION - As the companys debt collection period is decreasing per year from 35 in 2012 to 33 in 2013 & 2014 which is good for company & has no impact on slowdown of economy.

Particulars Gross Profit Sales Ratio

2012 Audited 12823.15 94781.96 13.52

2013 Provisional 20114.55 129881.75 15.48

2014 Projected 32716.36 176536.42 18.53

INTERPRETATION Gross profit of the company is 13.52% in 2012 which increased to 15.48% in 2013 & 18.53% in 2014 which is best for the company so company position is strong for all the financial year.

Particulars Net Profit Sales Ratio

2012 Audited 4234.36 94781.96 4.46

2013 Provisional 6547.46 129881.75 5.04

2014 Projected 12779.38 176536.42 7.24

INERPRETATION - The companys net profit is 4.46% in 2012 which increased to 5.04% in 2013 & 7.24% in 2014. Thus according to companys estimation & seeing the overall earnings ,company is in good position.

Particulars Long term debt Net worth Ratio

2012 Audited 29235.36 23945.14 1.22

2013 Provisional 36531.77 30492.59 1.2

2014 Projected 46505.41 43271.97 1.07

INTERPRETATION - As OWM has decreasing trend in d/e ratio thus using own funds & not taking loans. Equity is more than debt and lower debt decreases the cost as well as risk .Hence company is in good position.

TREND ANALYSIS

Net profit trend means analysis of changes in profits in different periods . The period may be short , mid term or long term . Net profit trend may go up or down.

Particulars

2012 Audited

2013 Provisional 6547.46

2014 Projected 12779.38

Net Profit

4234.36

Net profit trend

16000 14000 12000 10000 8000 6000 4000 2000 0 net profit Years

Net profit

1 4234.36 2012

2 6547.46 2013

3 12779.38 2014

INTERPRETATION:- Net profit of the Co. is in increasing trend in successive years which shows company is holding good strategy.

A sales trend is key performance indicators during a specific period of time .The purpose is to gain better understanding of past performance & predict future performance.

Years

2012
Audited

2013
Provisional 129881.75

2014
Projected 176536.42

Sales

94781.96

Net sales trend

200000

180000
160000 140000 Net sales 120000 100000 80000 60000 40000 20000 0 net sales year 1 94781.96 2012 2 129881.75 2013 3 176536.42 2014

INTERPRETATION:- Net sales of an company follows an increasing trend which means companys business is growing and scope for future contrast.

It is concluded that OWM has sufficient funds to meet its current obligation every time which is due to sufficient profits and management. Cash and receivable management are too good because of centralized control on this. Safety measures for inventories are also quiet sufficient in company.

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