An Evaluation of Financial Performance of Gokak Textiles Ltd.

Gokak

CHAPTER – I

CONTENTS:

1.1 Executive summary

1.2 Introduction of the study
1.3 Need of the study
1.4 Review of Literature
1.5 Importance of the study
1.6 Objectives of the study
1.7 Research Methodology
i) Primary Data
ii) Secondary Data
1.8 Scope of the study
1.9 Limitations

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 An Evaluation of Financial Performance of Gokak Textiles Ltd. Gokak

1.1 Executive Summary:

The Internship project titled "A Study of Evaluation of Financial Performance of
Gokak Textiles Ltd. Gokak." Focuses on evaluating the financial health and
operational efficiency of the organization. The study systematically applies various
financial ratios, including profitability, liquidity, solvency, and efficiency ratios to
assess the company's performance over a specific period of time. The internship is
offered by Gokak Textiles Ltd.

Gokak Textiles Limited, established in 1885, is a prominent Indian textile manufacturer

specializing in grey yarn, dyed yarn, and knitted and woven garments. The company
operates its primary manufacturing factory in Gokak, Belagavi, Karnataka. The
company holds a 51% stake in Gokak Power & Energy Limited (GPEL), with the
remaining 49% held by Shapoorji Pallonji Infrastructure Capital Company Private
Limited. The power generated by GPEL primarily supports Gokak Textile’s spinning
unit.

Financially, in the fiscal year 2023-24, Gokak Textiles reported an operating income of
₹125.8 crore, reflecting an increase from ₹110.8 crore in the previous year. However,
the company also reported a net loss of ₹31.5 crore during the same period. The
company's product portfolio includes dyed yarns, canvas, yarns, and made-ups, catering
to both domestic and international markets. Gokak Textiles Limited is publicly listed
on the Bombay Stock Exchange under the ticker or more detailed financial information
and corporate governance practices, stakeholders can refer to the company's annual
reports.

1.2 Introduction:

Gokak Textiles Limited is a well-established company in the Indian textile industry,

specializing in the production of yarns, fabrics, and garments. The company, which has
a rich heritage in textile manufacturing, has faced financial challenges in recent years
due to market fluctuations, operational inefficiencies, and industry competition.

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 An Evaluation of Financial Performance of Gokak Textiles Ltd. Gokak

This financial performance evaluation aims to analyse the company's financial health
based on key indicators such as revenue growth, profitability, liquidity, and operational
efficiency. By examining financial statements and key ratios, this study provides
insights into the company's strengths, weaknesses, and areas for improvement.

Financial ratios must be healthy. One healthy size-nota company is to look at financial
performance. How big the company is able to create profit, the ability to pay the debt,
control the debts, capital turnover, etc. Therefore, the financial statements that are
subject to the study. In fact, the scale of the company is different, there are small,
medium, and large. Starting from individual businesses, families, joint ventures,
corporations to conglomerates.

If the businesses scale is different, then the measurement of financial performance is

also different, cannot be equated. Theorise with practice in the field are sometimes
different. Indeed, the theory is an ideal size, but sometimes empirical readings are not
the same as the theory desires. At least this empirical can approach that should be
according to the will of the theory.

The study of actual financial performance is to understand the ideal criteria provide
with input data from the empirical reality of the firm. This article tries to examine what
is meant by financial performance, financial report, fundamental analysis, and technical
analysis what if want to learn finance.

1.3 Need of The Study:

The study of Evaluation of financial performance helps to analyse the past and current
performance of a factory and to make future plans and take right decision. Evaluation
of Financial performance means study of factory’s financial position and to know
whether the factory effectively contributing towards profitability, liquidity, efficiency
and solvency so that business can be carried out smoothly ensuring success and growth.
The present study helps to know the Evaluation of the financial performance of Gokak
Textiles Ltd. Gokak from the last Five years.

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 An Evaluation of Financial Performance of Gokak Textiles Ltd. Gokak

1.4 Review of Literature

1)Karahan Kara (Financial Performance Evaluation of listed in Corporate

Governance and sustainability Indices: Application of the IVSF- RBNAR Method)
(2025): This study evaluates the financial performance of companies listed in the
Corporate Governance Index and the Sustainability Index using financial ratios and an
MCDM approach. By employing the IVSF-RBNAR Method, the research effectively
integrated expert judgments and linguistic expressions to determine criterion
importance and rank companies based on their financial performance. The analysis
highlighted the significance of incorporating both qualitative and quantitative data to
create a comprehensive decision-making framework. The findings reveal that Doğan
Companies Group Holding Inc. achieved the highest financial performance among the
10 analysed companies, while Return on Assets (ROA) emerged as the most critical
criterion influencing corporate performance. The use of the IVSWAM aggregation
operator for criteria weighting and the RBNAR method for performance ranking proved
effective in terms of delivering accurate and meaningful results.

2) Rohit Bansal (An in-depth examination of the financial ratios of metals and
mining companies in India) (2025) The financial health, operational efficacy, and
return on equity of a business may be better understood with the use of ratio analysis
and the DuPont analysis. They make it easier to assess a variety of financial metrics,
compare results to industry standards, pinpoint strengths and areas for improvement,
analyse trends over time, and make educated decisions for stakeholders and investors.
A company's liquidity, profitability, solvency, and efficiency may be assessed using
these analytical approaches, which can assist spot potential dangers and opportunities
for development. The results can then be used to guide future growth and success. It is
clear from analysing the firms' liquidity ratios that not a single one of them keeps their
current ratio at the ideal level of 2:1. Tata Steel has the lowest Current Ratio in 2023,
according to the given figure, while Coal India has the highest. A comparison of
Hindalco Industries and Bharat Forge's profitability, activity turnover, asset turnover,
leverage, and DuPont analyses reveals that both companies make good use of their
resources to produce revenue, as their asset turnover ratios are relatively stable.

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3)Ashwath R & Sachindra G R (An Evaluation of the Financial Performance of

Indian Public Sector Banks with special Reference to Capital Adequacy and Asset
Quality) (2025) The analysis of Capital Adequacy and Asset Quality of Indian Public
Sector Banks from 2019 to 2024 reveals a clear trajectory of improvement in both areas.
Public sector banks have shown notable progress in bolstering their capital buffers,
aligning with Basel III norms, and enhancing their capacity to absorb financial shocks.
This has been evidenced by improvements in key ratios such as Basel III, Debt-to-
equity ratio (DER), and Leverage Ratio (LR). Simultaneously, the significant decline
in both Gross and Net Non-Performing Assets (NPAs) across all banks indicates better
asset management, loan recovery, and provisioning strategies. Moreover, the stability
in the Total Investments to Total Assets (TITA) ratio demonstrates a consistent approach
to asset allocation, contributing to overall financial health. This progress underscores
the banks' capacity to adapt to regulatory changes and evolving financial landscapes,
ensuring sustained stability in India's banking sector. To maintain and build upon these
gains, public sector banks must continue strengthening capital buffers, adopting
advanced technologies for asset quality management, and aligning with evolving
regulatory frameworks. These measures will ensure long-term stability and a more
robust response to future economic challenges.

4) Nirali R Shah & Jaygiri A Goswami (Marketing spend strategies: Driving

Financial Performance in the Corporate Landscape: A study of four Prime Sectors
of India) (2024) This study explores the relationship between marketing expenditures
and the financial performance of companies across four prominent sectors in India.
Utilizing a longitudinal research design, the study investigates trends and patterns over
an extended period to provide a comprehensive analysis. Data on marketing
expenditure, Net Profit Margin, return on net worth, return on capital employed, and
Return on Assets was collected from the annual reports of 60 companies spanning the
Automobile, Consumer Food, IT Services & Consulting, and Retailing sectors. The
findings reveal a positive correlation between marketing expenditure and key financial
metrics, including net profit margin, return on net worth, return on capital employed,
and Return on Assets. These results underscore the significance of strategic marketing
investments in driving overall financial performance within the corporate landscape.
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5) Priyata Chaudhury & Ashishkumar Sana (Measuring Financial Performance

of Non-Banking Financial Companies (NBFCs): Evidence from select BSE-listed
NBFCs in India) (2024) The present study examines the effects of reserves on the
proportion of loans disbursed, cost incurred in ratio to income, total assets and total
equity on the financial performance, that is, profitability of Indian Non-Banking
Financial Companies (NBFCs). The study applies Fixed Effects Panel Regression
model to BSE-listed, eleven NBFCs selected on basis of market capitalisation for the
period from financial year 2001 to 2023. It was found that excess of reserves in
proportion to loans disbursed significantly and negatively affected profitability. In order
to maintain liquidity for liability obligations, Indian NBFCs cut short on credit
disbursals, which affected profit, as interest income is the main source of revenue for
Indian NBFCs.

6) Bandaru Srinivasa Rao (Financial Performance Analysis of Private Sector

Banks in India: An Eagle Model Approach) (2024) Bank nationalization was an
important landmark in the history of banking in India. In order to serve the development
needs of the country, Banking Industry is growing at a faster pace and thus the
competition too. Banking industry is one of the crucial and important industries of
Indian economy. Due to passage of time there has been a constant change in the
performance of banks, which leads to change in ranking and position of the banks every
year. Private sector banks such as namely Axis Bank, DCB Bank, Federal Bank, HDFC
bank, ICICI bank, RBL Bank and South Indian Bank was selected on the basis of
economic influence criteria. To accomplish this aim, financial data from the chosen
banks' annual reports spanning from 2013-14 to 2022-23 was extracted. It shows that
HDFC bank, DCB bank, RBL bank & ICICI bank secured first rank whereas HDFC
bank will be in terms of earning and assets, DCB bank in terms of earning and equity,
RBL bank in terms of growth and liquidity and also ICICI bank in terms of liquidity
parameters with outstanding performance.

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 An Evaluation of Financial Performance of Gokak Textiles Ltd. Gokak

7) Mohammad Ayub Ahmed (Financial performance of selected public sector

banks in India: A Review of selected studies) (2024) This study focuses on review
papers that are published in prestigious journals and explores the performance of public
sector banks (PSBs) as a critical indicator of the nation's economic health. The analysis
of transformative changes in the financial landscape, including regulatory reforms and
technological advancements, has highlighted the evolving dynamics of PSBs. While
celebrating the recent improvements in the banking industry, as evidenced by declining
Gross Non-Performing Assets (NPA) ratios and positive indicators such as ROE and
ROA, the study has identified a research gap. Delving into intricate financial dynamics,
it scrutinizes select PSBs, revealing insights into their fiscal resilience, adaptability to
market trends, and contribution to economic well-being. Examining key metrics like
profitability, asset quality, and credit expansion, the study provides a comprehensive
overview of PSBs' role in economic resilience.

8) Dadhaniya Abhisha Chandulal (Financial Performance Analysis of Selected

Private and Public Sector Banks in India Through Camel Model Approach) (2024)
The Indian banking sector is the pillar of its economy as it is the core part of financial
systems. Banks ensures the saving and investing, risk management services, liquidity
of nation, credit generation, promoting of entrepreneurship and economic development.
For all these roles banks should be needed proper financial functioning, stable and
smooth running. All these criteria can be measured with the help of CAMEL model. In
this study all the parameters of CAMEL model are measured with calculating 17
different ratios for the duration of 2018-19 to 2022-23. On the bases of this ratio average
is calculated and ranking to the banks are given separately for private banks and public
banks as well as also combined ranking is given. The result of private banks shows best
performance in Kotak Mahindra Bank and poor performance in ICICI bank. While in
public banks the performance was good in BOB and poor in Union Bank. The overall
ranking of CAMEL model represents good performance for BOB and Poor ranking for
ICICI bank.

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9)Mirza Hapsari Hasidi, Jusbair Baheri & Khaerunnisa Ibnu Hajar (Financial
Performance Evaluation Using Profitability and Liquidity Ratio Analysis) (2024)
This study shows that PT Rig Tenders Indonesia Tbk has good financial performance
with high liquidity and profitability. Financial ratio analysis reveals that the company
has a strong ability to meet its short-term obligations and generate significant profits
from its assets and equity. The increase in current assets and net income indicates
effective and adaptive financial management to changing economic conditions.
However, the company needs to pay attention to its asset management and investment
portfolio to ensure optimal financial efficiency and flexibility. Holistic and continuous
financial performance evaluation is essential to maintain the stability and growth of the
company in the future. Practically, offer solutions for companies in managing risk and
improving operational efficiency through better asset management strategies and
investment diversification.

10) Bansal, R. R. & Singh, N. P. (Analysing the Financial Performance of

Commercial Banks in India: Camel Model on YES Bank & SBI And Lakshmi
Vilas Bank & DBS Bank India Ltd.) (2024) A bank plays an important role in
maintaining the economic condition of the country. Sound financial position of a bank
is the guarantee not only to its depositors but is equally significant for shareholders,
employees and whole economy as well. This study analyses the financial performance
of YES Bank & SBI, Lakshmi Vilas Bank (LVB) & DBS Bank India Ltd (DBIL) for
the period of 2009 – 2020 by using CAMEL Model. this research reveals that net NPA
(Non-Performing Assets) and more advances are the major reasons for YES bank crisis.
YES bank performs well up to 2017 but after that it begins to fall in terms of interest
income, net profits etc., in 2020 its profit shows negative value. On the other hand, bad
loans and capital inadequacy are the major reasons for failure of Lakshmi Vilas Bank
(LVB) as its NPA and Advances increased excessively during the period of study.

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11) P. Santhi, P. Sasirekha & J. Anija (A casual linkage between corporate

sustainability Performance and Financial Performance of select IT & ITES
companies in India) (2023) The Environmental, social, and governance (ESG)
performance is a non-financial method to evaluate the corporate that motivates
companies to have a goal shift from maximising profit to protection of environment and
social welfare Financial performance is anticipated to be affected over the long term by
environmental, social, and governance performance. On the other hand, a lack of
disclosure could arouse distrust or suspicion among stakeholders. The information
technology (IT) and information technology-enabled services sectors drive the growth
of the Indian economy. The annual reports for the research period of 2018–19 to 2022–
2023 were used to get the financial information. Of them, 27 IT & ITeS companies
were selected by adopting census sampling techniques. Environment, Social and
Governance factors have been taken into consideration while assessing corporate
sustainability. Econometric analysis has been applied to evaluate the strength and
causality between the financial performance and ESG performance of corporate.

12)Chauhan Mehulkumar Jayantibhai (A Study on Financial Performance

Analysis of Tata Consultancy Limited) (2023) The global economy may be
expanding, but the Indian software industry is still expanding at a steady rate. As part
of the larger business finance role. IT has a great potential to be an engine of accelerated
economic growth, efficiency, improvement for all economic sectors, strengthening
India's export market position, reducing trade deficit, and a tool for effective
governance. It improves access to information, safeguards consumers, offers access to
government services, increases the effectiveness of skill development and training,
enhances the liberation of health services, and encourages simplicity. According to the
results of the current study, Tata Consultancy Services underwent "A study on financial
condition and performance analysis with special reference to Tata Consultancy
Services" during a five-year period from 2017–2018 to 2021–2022.

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13) K Suresh & Subhendu Kumar Pradhan (Evaluation of Financial Performance

of Banking Sector in India – A Camel Approach) (2023) The CAMEL rating model
was initially established in the USA in the 1970s. It was only used in the USA initially
but has now spread to other countries. Currently, it's common practice to evaluate a
company's performance using a modified CAMEL model. Eighteen ratios have been
computed using this approach under five headings. The study finds that PSB has kept a
sufficient amount of capital to cover any future needs, but it also has a higher volume
of borrowings than PSUB, which suggests that PSB is highly leveraged. In controlling
the nonperforming assets PSB performed well than PSUB. The amount of NPAs in
PSUB is rising, which has a negative impact on the bank's managerial effectiveness and
profitability. In terms of liquidity position, the PSB is better than PSUB in terms of
liquid assets to deposit. In comparison, the PSUB is better than PSB concerning LA to
TA. It also showed that there is no significant difference between PSB & PSUB in all
ratios, except for net NPAs to NA. In case of NPA to NA ratio, the PSUB has more
nonperforming assets due to unable to collect the debt amount from the borrowers on
time.

14) Dr. Ganatra Kashyap A. (Financial Performance Evaluation of India’s

Leading Power Companies) (2022) The financial performance evaluation of power
companies is vital in understanding their operational efficiency and profitability. This
study aims to analyze and compare the financial performance of four leading power
companies in India over a period of five years, covering data from 2018-19 to 2022-23.
The selected companies for this research include Adani Power Ltd, NTPC Ltd, Power
Grid Corporation of India Ltd, and Torrent Power Ltd. The research objectives are
twofold. Firstly, to conduct a comprehensive analysis of the financial performance of
the selected power companies, evaluating key metrics such as Return on Net Worth
(RoNW), Return on Assets (RoA), Current Ratio, and Net Profit Margin (NPM).
Secondly, to compare the financial measures of these power companies to identify any
significant differences in their performance. The financial data for the years 2018-19 to
2022-23 has been analyzed, enabling a comprehensive evaluation of their performance
over five consecutive years.

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15) Mani Sree Tadi (Evaluation of Financial Performance of Selected Non-

Banking Financial Companies in India) (2022) Over the last five years, continuous
economic shocks have impacted the economy to a great extent. Liquidity crunch and
credibility have become major concerns in the financial services sector post
demonetization and the Infrastructure Leasing and Financial Services ltd crisis.
Unemployment and economic costs due to lockdowns have stimulated the volatility in
the Indian economy after the COVID-19 pandemic. This paper potentially emphasizes
finding the financial performance of Non-Banking Financial Companies based on a few
selected parameters over a five-year study period from 2017 to 2021. The data gathered
from the companies' annual reports and performance highlight records have been
analyzed and interpreted to track their performance patterns. Trend analysis has been
employed to examine the movement of the selected variables like Profit after tax,
Return on assets, Non-Performing Assets, Earnings per share, capital adequacy, etc.,
over the study period. The study results infer that Muthoot finance ltd is performing at
a more progressive place than Shriram transport finance company ltd and has a better-
expanded reach into the public with its affordable services and nominal loan
requirements.

16) Shailendra Singh (Performance evaluation and financial viability analysis of

grid associated 10 MWp Solar Photovoltaic power plant at UP India) (2022) The
main aim of this simulation work is to assess the financial possibility analysis of 10
MWP grid associated solar photovoltaic (PV) power plants in seven cities i.e. Lucknow,
Agra, Meerut, Gorakhpur, Kanpur, Allahabad, and Varanasi of Uttar Pradesh (UP) state
of India with the RET Screen Software. The presented research work demonstrates the
method of selection of profitable locations for solar PV power plants according to
financial viability indicators. It is found that Allahabad city is the most profitable site
with values of 16,686 MWh of electricity exported to the grid (EEG), US$20,896.30/
year of electricity export revenue (EER), 9.4 years of simple payback period (SPP), 7.7
years of equity payback period (EPP), 19545.9 tCO2/ year of GHG emission reduction,
US$3492.82/year of the annual life cycle savings (ALCS), 1.5 benefit-cost (B-C) ratio,
US$27394.59 of net present value (NPV), 16.5% internal rate of return on equity (IRR-
equity), 12.3% modified internal rate of return on equity (MIRR equity), 5.4% internal
rate of return on assets (IRR-assets), and 7% modified internal rate of return on assets.

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17) Sparsh Johari (Development of financial performance evaluation framework

for the Indian construction companies) (2021) The present study provides an FPEF
for the companies based on the factor scores of the five SFPFs, viz. investor return
factor, business efficiency factor, operations management factor, activity efficiency and
risk coverage factor, and assets management factor. SAW, an MCDM method, has been
used to calculate individual financial performance score (IFPS) for accessing the
relative performance of the companies concerning time for any year from 2008 to 2017.
Also, to provide the net ranking taking all the financial performances of the last ten
years into account, the net financial performance score (NFPS) was calculated for each
company by taking the average of the IFPS over the previous ten years. The status of
management policies and strategies, and recommended actions required for
improvement is provided for each category. The FPEF may be employed to determine
the relative position of any construction company other than the 94 companies
considered in this study for the Indian construction industry. Further, only those
companies were selected for analysis for the last ten years’ financial data.

18) Dhanraj Devraj Gadhavi & Dr. Mahesh M. Barad (A Comparative Study of
Financial Performance: With Special Reference to Tata Consultancy Services Ltd
and Infosys Ltd) (2021) The purpose of the study was to analyze and compare the
financial performance of Tata Consultancy Services and Infosys. The purpose of this
article is to assess and compare the financial performance of Tata consultancy services
and Infosys for the period of five years starting from 2016-17 to 2020-21. The objective
of the present study is to evaluate various aspects of financial performance such as
profitability and liquidity. According to the findings of the study, Tata Consultancy
Services' financial performance outperforms of the Infosys. According to this analysis,
Tata consulting services create higher profit. Infosys should keep costs and expenses
under control in order to increase net profit. TCS had a higher return on net worth than
Infosys. Infosys should boost its net worth through increasing its profit margins and
asset turnover. TCS' earnings per share were also higher than Infosys'. By raising net
income, Infosys can increase EPS. TCS and Infosys both performed well in terms of
liquidity, however TCS had a stronger liquidity position than Infosys.

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19) Mr. Bhavik Barot (A study on financial Performance of selected Telecom

companies in India) (2021) In this study researcher has evaluated the financial
performance of the two large and old companies, Airtel and Vodafone Idea. Researcher
has evaluated financial performance through ratio analysis which shows more volatility
in selected time span of last five year from 2015-16 to 2019-20. In case of Profitability
considering gross profit and net profit Airtel is performing better than Vodafone, in case
of Liquidity both companies are on same track, but minutely average liquidity of Airtel
is better than Vodafone. TO measure solvency researcher has used the debt equity ratio
and interest coverage ratio in both analysis Airtel is performing better than Vodafone
Idea throughout the five years, so overall we can conclude that over a five year of period
Airtel’s financial performance was better than Vodafone Idea’s financial performance.

20) Dr. Sugandha Chhibber (A study on Financial Performance Evaluation of

selected Textiles Companies India: An Empirical Analysis) (2020) The Indian textile
industry is one of the largest in the world after China with a massive raw material and
textiles manufacturing base. This sector has played a pioneered role in growth and
upliftment of country. This sector has contributed seven per cent of the industry output
(in value terms) of India in 2018-19. This sector has generated employment for more
than 45 million people, and further this contributed fifteen percent share to the country’s
export. It contributed seven per cent to the GDP of India and employs more than 45
million people in 2018-19. Apparel constituted for around three-fourth of the total
textile and apparel market in India. Presently, Indian textile sector is growing at a rapid
pace and is getting international recognition. Indian domestic textile and apparel market
was US$ 100 billion in 2018-19, which is expected to grow to US$ 220 billion by 2025
at a CAGR of 12%. This sector is also taking adequate measures for the development
of export-oriented products, attracting new investments both domestic and foreign.
Besides this sector has significant importance of employment generation, industrial,
social and economical in nature. Further each company could invest on the basis of
current performance compared with previous year or with other company. Funds are
highly required for day-to-day business operations of the firm and how to utilize it and
in what way should avoid loses from the investment are discussed here plus, it happens
by ineffective management.
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1.5 IMPORTANCE OF THE STUDY:

Analysing the factory’s financial statements such as Balance sheets, Income

statements, and cash flow statements can provide insights into its financial health,
profitability and cash flow management. Calculating the financial ratios, such as debt-
to-equity, current ratio and return on equity can help evaluate the factory’s financial
performance.

1.6 OBJECTIVES OF THE STUDY:

The primary objectives of evaluating the financial performance of Gokak Textiles

Limited are:

1) To study the liquidity, solvency and profitability.

2) To know the financial position and performance of a textiles factory.
3) To bring out result of the financial through ratio analysis.
4) To facilitate control over the operation as well as resource of the business.
5) To examine the financial changes and compare the financial performance over
Five-years period.

1.7 RESEARCH METHODOLOGY:

This research methodology is the way to evaluating the financial performance of the
Gokak Textiles Ltd. The data used in the report was collected from the Secondary data.
This research study is an attempt to examine the textile factory. It is really based on
Secondary data annual reports, balance sheet and income & expenditure statements of
the textile factory. The financial data used in the report was already published in the
Websites and Internet. Primary data as well as secondary data furnished in this report
has been collected from Primary data such as through interview of manager, labour or
employees of factory.

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1. PRIMARY DATA: Data is collected first hand from original source. It is

original information collected directly from the Gokak Textiles Ltd. Primary
data can be collected through financial records, surveys, interviews, focus
groups, observations. And also get data through financial statements,
accounting records, market research and internal audits.
For example, the company can conduct a survey among cotton farmers to gather
on cotton production costs, yields rates, and quality metrics.

2. SECONDARY DATA: Secondary data refers to data that has already been
collected and analysed by someone else. And it is collected from external
sources in the Gokak Textiles ltd such as industry reports, academic research,
or government statistics. It was already published by the industry. And it is
collected through online websites and internet.
For example, the company can gather data on cotton production trends, market
demand, and competitor analysis from government reports and industry
publication.
Another example, accessing online databases to gather information on textiles
imports and exports, and market research report to acquire information on
consumer behaviour and preferences.

STATISTICAL TOOLS

1. Table chart
2. Bar graph
3. Line Graph

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1.8 SCOPE OF THE STUDY:

The scope of this study focuses on evaluating the financial performance &
operational efficiency of Gokak Textiles ltd. with an emphasis on key financial health
& sustainability. This involves making financial statements, such as balance sheet and
income statements, and analysing financial performance to identify areas for
improvement. The study aims to analyse various financial parameters & operational
factors can impact on the business. Finance also involves finding, funding options, such
as loans or investments and managing the company’s cash flow to ensure it has enough
money to operate.

1.9 LIMITATIONS:

A good report interprets result of the study but every project has its own limitation
of study.

a) Due to limited period of study data was collected mainly from the secondary
sources.
b) The study is fully based on quantitative data.
c) The study covered only past 5 years financial data.
d) Time duration of the study in only One month, hence not able to prove clear
picture of the financial position.

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CHAPTER - 2

Contents

1. Introduction of company & profile

2. History of the Textiles factory
3. Vision and Mission
4. Objectives of Textiles Factory
5. Organization Structure
6. Nature of Business Carried
7. Product and Service Profile
8. Area of Operation
9. SWOT Analysis
10. Competitors

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2.1 INTRODUCTION OF COMPANY AND PROFILE

Gokak surrounded on one side by a range of hills, and on the other side by a vast plain
of black Soll. The river Ghataprabha flows from the north side of the city and cascades
down a cleft of 170 ft, to form Gokak Falls before flowing through the city. Since the
colonial era, the hydroelectric station under the waterfall has been used power to Gokak
Mills, one of the largest manufacturers and exporters of yarn in India.

Forbes Gokak Ltd. is a major textile industry located about 6 km west of Gokak in the
town of Gokak Falls. It is also known as "Gokak Textiles Ltd". Gokak mills are known
for their yarn which is supplied worldwide. Gokak Textiles Ltd. has also received ISO
9002 certification. This helped the surrounding area geologically with regard to
temperature, rainfall and a better quality of air. This project has won many accolades in
the past years for the company and has also received an award in 1994 for its forestation
efforts.

COMPANY PROFILE

COMPANY NAME GOKAK TEXTILES LTD

GOKAK FALLS – 591308

COMPANY ADRRESS DIST: BELAGAVI, KARNATAKA,
INDIA

ESTABLISHMENT 5TH OCTOBER 1887

COTTON AND BLENDED YARN,

DOUBLE YARN, DYED YARN, TERRY
PRODUCTS
TOWEL, INDUSTRIAL FABRICS,
READYMADE GARMENTS

INSTALLED CAPACITY YARN 54,432 TONS PER DAY

NO. OF SPINDLES 69,024

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2.2 HISTORY OF THE TEXTILE FACTORY

The history of textile industry is almost as old as of human civilization and as time
moves on the history of textile has further enriched itself. In the 6 th & 7th century BC,
the oldest recorded indication of using fibber comes with the invention of flax and wool
fabric at the excavation of Swiss lake inhabitants. In India the culture of silk was
introduced in 400AD, while spinning of cotton traces back to 3000BC. In China, the
discovery and consequent development of sericulture arid spin silk methods got
Initiated at 2640 BC while in Egypt the art of spinning linen and weaving developed in
3400 BC. The discovery of machine and their widespread application in processing of
natural fibres WES a direct outcome of the industrial revolution of the 18 th and 19th
centuries, the discoveries of various synthetic fibres like nylon created a wider market
for textile products and gradually led to the invention of new and improved sources of
natural fibres. The development of transportation and communication facilitated the
path of transaction of localized skills and textile art among various countries.

It has good labour strength and adapted vary modern technology. The industry apart
from being one of the technology-based industries also labour intensive and produces
one of the most important days to day customer items essential for the people. Cotton
is the main raw material used for the production of yarn and cloth. When the mill fells
lack of cotton by local areas it imports the cotton from Australia and South Africa.

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The textile industry is a self-reliant industry from the production of raw materials to the
delivery of final products with considerable value addition at each stage of processing.
The Gokak mill was registered in the year 1885 by Riche Steward Ltd, under the name
of Gokak Water Power and Manufacturing Company Ltd (GWPCL). On the 5 th October
1887 the first power house of the country was commissioned and with the help of 250
HP of mechanical power generated by peloton wheel, which was transmitted to the
spinning mills run by Gokak water power and manufacturing company Ltd. The
extraordinary length of the line of transmission and speed attained by the huge pulley
wheels were said to be surpass only thing as the kind of world 646.42 hectors is the
total land location of the mill dividing area including village forestation and area listed
in the total property. In the year 1887 first mill was started with 6000 spindles and in
the year 1890 spindles were increased to 29,525. In the year of 1913 first time in the
Asia started Hydro power generation by using turbine. In the year 1919, the company
was registered in the India as "Gokak Mills Ltd" then it becomes a rupee company.
Ritche Stewart and company limited, united with the M/S. Forbes and company to
become Forbes Campbell of $100,000. The company started with mechanical power
with 250 HP Pelton wheel. In the year 1924, waste processing unit was started. In the
year 1973, Gokak Mill merged with Gokak Volkart Ltd. and the Gokak Mill become
division of this company. In the year of 1992, Gokak Volkart merged with Forbes
Campbell Ltd. and the new company named as Forbes Gokak Ltd. In the year of 2007,
Gokak Mills came out and made separate textile company as Gokak Textile Ltd.
consisting of Gokak Mills, Campbell knitwear and pt Gokak.

2.3 VISION AND MISSION

 VISION

1. Customers delight through quality products and services

2. Sustain and continuously enhance all stakeholders’ interest.

3. Create working environment to make all employees produces as a member of team.

4. Creation of clean and healthy environment.

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 MISSION

1.To provide innovative product at competitive price

2.Developing long term relationship with suppliers with an aim.

3.Providing training to our employees for their future development.

4.Our mission is to expand our business of cotton ginning and pressing or that we mean
to increase best quality processing in our unit.

2.4 OBJECTIVES OF COTTON INDUSTRY

 Easily availability of labour and material

 Improve the standards of living for rural people
 Reduce the cost of production
 Creating employment opportunities in rural areas.

2.5 ORGANIZATION STRUCTURE

The Organization Structure of GOKAK Factory is based on hierarchy system and

department maintenance is done based on enterprise functions viz. Production,
Purchase, Accounts etc. The Organization structure is to design and to clarify who is to
do what tasks and who is responsible for what results. Decision-Making and
communication networks are very clear and well informed to all employees. The
department heads, managers, and supervisors are very clear about their limits of
authority and responsibility. The coordination of activities are achieved through set of
well-defined rules and procedures, various aspects of planning, personal contacts and
balance decentralization can be observed here. In this Formal Structure, there are many
informal groups. Employees living in a same colony etc., even we can see pairs of sons
and fathers working here. These informal groups have been positively utilized by the
factory to achieve its goals and objectives.

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ORGANIZATION STRUCTURE OF THE GOKAK TEXTILES LTD.

Board of
Directors

Chairman

Managing Non-Executive
Director Directors

Managing Chief
Financial Cheif operating
Director Officer
Officer

Accounts Cost Purchase

Executive Executive Executive

Accounting EDP In Stores Purchase

Offcer Cashier Charge Incharge Asst

Accounts Accounts Stores Asst

Asst (2) Asst (2)

Operator

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BOARD OF DIRECTORS

SL .NO. NAMES DESIGNATION

Chairman, Non-Executive and

1 Vinod J. Bhandawat
Non-Independent Director

2 Gautam V. Kumtakar CEO & MD

3 Nikhil Bhatia Director

4 Pradeep N Kapadia Director

5 Govind Prasad Dasu Director

6 Sunita Khanna Director

2.6 NATURE OF BUSINESS CARRIED

1.Cleaning of cotton.

2.Separation of cotton seeds and cotton.

3.Pressing of cotton.

4.Production of cotton bales which act as a input to spinning industry.

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2.7 PRODUCT & SERVICE PROFILE

1) Garments

From the textile production to garment manufacturing for Fashion outwear, sports
outwear and knitwear. We’ll make sure to unburden you by creating the full garments
with our own technical fabrics. This includes all types of jackets and outwear for middle
& high-end brands. We guide your project from design of the style until the final
distribution.

2) Fabrics

‘’Fabrics products’’ refer to items made from fabric, like clothing, upholstery, towels,
bedding, and bags, while ‘’fabrics services’’ encompass the processes involved in
creating fabric, including weaving, dyeing, printing, finishing, and custom fabric
production for specific applications like technical textiles or medical garments.

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3) Yarn

Yarn product includes various types of yarn made from different fibres like cotton,
wool, linen, viscose, and synthetic materials, while services related to yarn can
encompass buying and selling yarn online, logistics for yarn delivery, sampling services
to check yarn quality, and dyeing services to color the yarn according to specific needs.

2.8 AREA OF OPERATION

Area of operation is in Belgaum district with Gokak and Marihal, Karnataka.

Gokak Taluka of Village areas.

Other operations:

 Gokak Textiles is part of the SP Group, an industrial conglomerate with interests

in construction, real estate, home appliances, shipping, engineering, and power
generation.
 The company has a subsidiary named Gokak Power & Energy Limited (GPEL),
which generates power for the spinning unit.
 Gokak textiles have exported yarn to more than 35 countries.

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2.9 SWOT ANALYSIS

 Strengths
1) Large capacities of raw material are available to help the downstream products.
2) Gokak textiles ltd. used modern technology in the spinning mill.
3) Ability to give below 5% user level yarn.
4) Availability of different types of labour.
5) Ability to process small lots.
6) Large capacity of made fibre planets.
7) The whole production process done in an efficient way with the work divided
among the different mills.
8) Large number of trained work force.

 Weaknesses

1) Lack of value addition.

2) Entire spinning and weaving department are fragmented.

3) Mismatch in the capacities of spinning, weaving and processing

 Opportunities

1) Huge population of qualified personnel.

2) Emerging biotechnology era.

3) Proximity to gulf countries, which are emerging as the major consuming countries.

4) Due to agriculture getting mechanized, further large work force will be made
available to the mill.

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 Threats

1) Bilateral trade agreement overlooking world trade organization norms.

2) Government foreign policy.

3) International political situation, cultural changes Increasing rates of raw materials.

2.10 COMPETITORS

1. Alok industries ltd.

2. Ambika cotton Mills Ltd.
3. Vardhman Textiles
4. Raymond Ltd.
5. Welspun India
6. Bombay Dyeing

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DATA INTERPRETATION AND ANALYSIS

MEANING OF EVALUATION OF FINANCIAL PERFORMANCE: -

Evaluation of financial performance refers to the process of analysing and assessing

an organization’s financial health, stability, and performance over a specific period. It
involves reviewing financial statements, such as balance sheets, income statements, and
cash flow statements.

INTRODUCTION ABOUT DATA ANALYSIS AND INTERPRETATION: -

Data analysis and interpretation is the process of systematically examining and

explaining a company’s financial data, like income statements, balance sheets, and cash
flow statements, to extract meaningful insights about its financial health, trends and
performance ultimately allowing for informed decision-making based on the patterns
and relationships identified within the data.

DATA ANALYSIS

 It Involves systematically applying statistical and logical techniques to

analysing data
 Helps you to categorize, manipulate, and summarize the data
 Helps you to identify patterns and relationships in data
 Helps you uncover insights and drive decision-making

DATA INTERPRETATION

 It Involves making sense of the evaluation of financial statements.

 Helps you to provide context, insights, and conclusions
 Helps you to draw statistical conclusions, inter relationships, and implications.

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HOW ARE DATA ANALYSIS AND INTERPRETATION USED

 In business, data analysis and interpretation can help you make decisions about
marketing strategy, supply chains, and new product launches.
 In research, data analysis and interpretation can help you identify trends and
relations in accordance with your research aims.

NEED OF EVALUATION OF FINANCIAL PERFORMANCE: -

 Understand a company’s performance: Review a company’s past sales,

profitability, and cash flow to understand how it’s performing.
 Make investment decisions: use financial statements to decide whether to invest
in a company.
 Assess a company’s fiscal health: use financial statement to assess a company’s
fiscal health.

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Gokak textiles ltd statement of the Profit & Loss for the year ended 31 st March 2024

Particulars Note Year ended Year ended

No March 31st March 31st
2024 Amt 2023 Amt
(Lakhs) (Lakhs)
1 Revenue from Operations 22 12,746.88 11,041.59
2 Other income 23 715.45 408.29
3 Total Income 13,462.33 11,449.88
4 Expenses
Cost of Materials consumed 24 6,228.83 5,251.22
Changes in Inventories of Finished goods 25 213.05 61.45
and work In Progress
Employee benefit expenses 26 2,911.39 2,707.72
Finance costs 27 2,501.54 2,420.86
Depreciation and Amortisation expenses 28 1,968.60 1,999.73
Other Expenses 29 2,334.57 2,242.77
Total Expenses 16,157.98 14,683.75
5 Profit/(Loss) before exceptional items and 30 (2,695.65) (3,233.87)
tax
6 Exceptional Items – income 938.95 -
7 Profit/(loss) before Tax (1,756.70) (3,233.87)
8 Tax Expenses
(a) Current tax
(b) Deferred Tax
9 Profit/(Loss) for the year (1,756.70) (3,233.87)
10 Other comprehensive income
Items that will not be reclassified to Profit or
loss
(a)Remeasurement of the defined benefit 75.94 66.60
plans
Items that will be reclassified to Profit/Loss
Other comprehensive income 75.94 66.60
11 Total comprehensive income for the year (1,680.76) (3,167.27)
12 Earning per Equity Share 31
Basic and diluted earnings per Equity share (27.03) (49.76)
Refer Note No I - (Amounts fluctuate after Amalgamation of the other company)
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Gokak textiles ltd statement of the Profit & Loss for the year ended 31 st March 2023

Particulars Note Year ended Year ended

No March 31st March 31st
2023 Amt 2022 Amt
(Lakhs) (Lakhs)
1 Revenue from Operations 24 7,902.73 12,008.89
2 Other income 25 361.94 402.64
3 Total Income 8,264.67 12,411.53
4 Expenses
Cost of Materials consumed 26 5,251.22 7,703.63
Changes in Inventories of Finished goods 27 61.45 184.91
and work In Progress
Employee benefit expenses 28 2,707.72 3,050.16.
Finance costs 29 448.99 1,452.25
Depreciation and Amortisation expenses 30 503.50 540.74
Other Expenses 31 2,024.02 2,738.47
Total Expenses 10,996.91 15,670.16
5 Profit/(Loss) before exceptional items (2,732.24) (3,258.63)
and tax
6 Exceptional Items – income 3,091.06 -
7 Profit/(loss) before Tax 358.82 (3,258.63)
8 Tax Expenses
(a) Current tax
(b) Deferred Tax
9 Profit/(Loss) for the year - (3,258.63)
10 Other comprehensive income
Items that will not be reclassified to
Profit or loss
(a) Remeasurement of the defined 66.60 27.71
benefit plans
Items that will be reclassified to
Profit/Loss
Other comprehensive income 66.60 27.71
11 Total comprehensive income for the year 425.42 (3,230.92)
12 Earning per Equity Share 32
Basic and diluted earnings per Equity 5.52 (50.14)
share

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Gokak textiles ltd statement of the Profit & Loss for the year ended 31 st March 2022

Particulars Note Year ended Year ended

No March 31st March 31st
2022Amt 2021 Amt
(Lakhs) (Lakhs)
1 Revenue from Operations 23 12,008.89 10,670.66
2 Other income 24 402.64 236.69
3 Total Income 12,411.53 10,907.35
4 Expenses
Cost of Materials consumed 25 7,703.63 6,630.41
Changes in Inventories of Finished 26 184.91 145.37
goods and work In Progress
Employee benefit expenses 27 3,050.16. 3,206.67
Finance costs 28 1,452.25 1,336.36
Depreciation and Amortisation expenses 29 540.74 605.54
Other Expenses 30 2,738.47 2,670.23
Total Expenses 15,670.16 14,594.58
5 Profit/(Loss) before exceptional items (3,258.63) (3,687.23)
and tax
6 Exceptional Items – income -
7 Profit/(loss) before Tax (3,258.63) (3,687.23)
8 Tax Expenses
(c) Current tax -
(d) Deferred Tax -
9 Profit/(Loss) for the year (3,258.63) (3,687.23)
10 Other comprehensive income
Items that will not be reclassified to
Profit or loss
(b) Remeasurement of the defined 27.71 (24.84)
benefit plans
Items that will be reclassified to
Profit/Loss
Other comprehensive income 27.71 (24.84)
11 Total comprehensive income for the (3,230.92) (3,712.07)
year
12 Earning per Equity Share 31
Basic and diluted earnings per Equity (50.14) (56.73)
share

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Gokak textiles ltd statement of the Profit & Loss for the year ended 31 st March 2021

Particulars Note Year ended Year ended

No March 31st March 31st
2021Amt 2020 Amt
(Lakhs) (Lakhs)
1 Revenue from Operations 23 10,670.66 9,821.96
2 Other income 24 236.69 394.45
3 Total Income 10,907.35 10,216.41
4 Expenses
Cost of Materials consumed 25 6,630.41 6,357.98
Changes in Inventories of Finished 26 145.37 467.32
goods and work In Progress
Employee benefit expenses 27 3,206.67 2,901.32
Finance costs 28 1,336.36 1,155.68
Depreciation and Amortisation expenses 29 605.54 606.75
Other Expenses 30 2,670.23 3,186.16
Total Expenses 14,594.58 14,675.21
5 Profit/(Loss) before exceptional items (3,687.23) (4,458.80)
and tax
6 Exceptional Items – income - -
7 Profit/(loss) before Tax (3,687.23) (4,458.80)
8 Tax Expenses
(e) Current tax - -
(f) Deferred Tax - -
9 Profit/(Loss) for the year (3,687.23) (4,458.80)
10 Other comprehensive income
Items that will not be reclassified to
Profit or loss
(c) Remeasurement of the defined (24.84) (18.72)
benefit plans
Items that will be reclassified to
Profit/Loss
Other comprehensive income (24.84) (18.72)
11 Total comprehensive income for the (3,712.07) (4,477.52)
year
12 Earning per Equity Share 31
Basic and diluted earnings per Equity (56.73) (68.60)
share

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Gokak textiles ltd statement of the Profit & Loss for the year ended 31 st March 2020

Particulars Note Year ended Year ended

No March 31st March 31st
2020 Amt 2019 Amt
(Lakhs) (Lakhs)
1 Revenue from Operations 24 9,821.96 17,300.46
2 Other income 25 394.45 701.20
3 Total Income 10,216.41 18,001.66
4 Expenses:
Cost of Materials consumed 26 6,357.98 12127.69
Changes in Inventories of Finished goods 27 467.32 58.61
and work In Progress
Employee benefit expenses 28 2,901.32 3,192.30
Finance costs 29 1,155.68 1,406.96
Depreciation and Amortisation expenses 30 606.75 621.55
Other Expenses 31 3,186.16 4,225.60
Total Expenses 14,675.21 21,632.71
5 Profit/(Loss) before exceptional items and (4,458.80) (3,631.05)
tax
6 Exceptional Items – income - -
7 Profit/(loss) before Tax (4,458.80) (3,631.05)
8 Tax Expenses
(g) Current tax - -
(h) Deferred Tax - -
9 Profit/(Loss) for the year (4,458.80) (3,631.05)
10 Other comprehensive income
Items that will not be reclassified to Profit
or loss
(d) Remeasurement of the defined (18.72) 62.43
benefit plans
Items that will be reclassified to Profit/Loss
Other comprehensive income (18.72) 62.43
11 Total comprehensive income for the year (4,477.52) (3,568.62)
12 Earning per Equity Share 32
Basic and diluted earnings per Equity share (68.60) (55.87)

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Notes to accounts: I)

2023-24 amounts changes in the P&L Ac, because of Gokak Textiles Ltd.
taken over the SOEPL (Suryoday One Energy Private Ltd.). The Amount
fluctuates in the books of Accounts.

SL.No Particulars Note. Gokak co. SOEPL Total

No Ltd.(Amt (Amt in (Amt in
in Lakhs) lakhs) Lakhs)
1 Revenue From 22
operations 7,902.73 3,138.27 11,041.59
2 Other Incomes 23 361.94 46.35 408.29
3 Finance cost 27 448.99 1,971.87 2,420.86
4 Depreciation & 28 503.51 1,496.22 1,999.73
Amortisation
5 Other Expenses 29 2,024.02 218.75 2,242.77

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GOKAK TEXTILES LTD

BALANCE SHEET AS AT 31ST 2024

Particulars Note As At As At
No March 31st March 31st
2024 2023
Amt Amt
(Lakhs) (Lakhs)
Assets
1 Non-current assets

a) Property, Plant and Equipment 3 23,514.57 25,714.03

b) Capital work-in-progress 3A 0.54 -

c) Right of use Asset 3B 4.31 6.49

d) Investment Property 4 - 11.35

e) Intangible assets 5 4.95 6.54

23,524.37 25,963.43
f) Financial Assets:

i) Investments

a) Investments in Subsidiaries
6A 2,499.00 2,499.00
b) Other Investments 6A 0.03 0.03
2,499.03 2,499.03

ii ) Loans to subsidiary 6B 5,990.57 -

ii)Other financial assets 8A 1,415.13 1,335.44

9,904.73 3.834.47
g) Tax assets

i) Deferred tax assets (net) 18 - -

ii) Income tax assets (net) 21 152.08 77.05

152.08 77.05

h) Other non-current assets 11A 571.32 597.53

Total Non-current assets 34,152.50 30,472.48

2 Current assets

a) Inventories 9 1,281.75 1,571.19

b) Financial Assets:
7 1,149.32 787.58
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i) Trade receivables 10A 683.04 287.18

ii) Cash and cash equivalents 10B 124.82 119.71

iii) Bank balances other than (ii) above 8B 17.54 38.39

1,974.72 1,232.86
iv) Other financial assets
11B 64.80 67.45
c) Other current assets 2,039.52 1,300.31

Assets classified as held for sale 12 436.31 -

Total Current assets 3,757.58 2,871.50
Total Assets 37,910.08 33,343.98

Equity and Liabilities

Equity

Equity share capital 13 649.93 649.93

Instruments entirely equity in nature 14A 14.882.98 8,455.67

c) other equity 14B (11,941.17) (10,260.41)

Total Equity 3,591.74 1,154.81

Liabilities

1 non-current liabilities

a) financial liabilities:

i) Borrowings
15 24,386.57 23,714.03
ii) Lease Liabilities
5.58 9.41

b) Provisions 17A 162.50 31.50

Total Non-current liabilities 24,554.65 23,358.95

2 Current liabilities

c) Financial liabilities:

i) Borrowings 15 1,552.53 1,344.53

ii) Lease Liabilities 3.84 3.26

iii) Trade Payables:

- dues to Micro and Small Enterprises 20 13.18 15.48
-dues to other Creditors 1,734.92 2,518.98
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iv) Other financial liabilities 16B 5,018.38 4,901.93

8,322.85 8,784.18

b) Provisions 17B 130.99 153.38

c) Other current liabilities 19 688.14 202.28

Total Current Liabilities 9,141.98 9,139.84

Total Liabilities 34,318.34 34,498.79

Total Equity and Liabilities 37,910.08 33,343.95

Refer Note No. II - (2023-24 Balance sheet of the total Assets and Liabilities of the
books of accounts fluctuates after Amalgamation of the other company)

GOKAK TEXTILES LTD

BALANCE SHEET AS AT 31ST 2023

Particulars Note As At As At
No March March 31st
31st2023 2022
Amt Amt
(Lakhs) (Lakhs)
Assets
1 Non-current assets

a) Property, Plant and Equipment 3 5,092.06 5,0563.43

b) Capital work-in-progress - -

c) Right of use Asset 3A 6.49 8.66

d) Investment Property 4 11.35 11.35

e) Intangible assets 5 6.54 5.63

5,116.44 5,589.07

f) Financial Assets:

i) Investments
a) Investments in Subsidiaries 6 2,499.00 2,499.03
b)Other Investments 6 0.03 0.03
2,499.03 2,499.03

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ii)Other financial assets 8A 124.31 141.49

2,623.34 2,640.52

g) Tax assets
i) Deferred tax assets (net) 19 - -

ii) Income tax assets (net) 22 67.64 66.97

h) Other non-current assets 608.59 625.48
Total Non-current assets 8,416.01 8,922.04

2 Current assets

a) Inventories 9 1,571.19 1,599.29

b) Financial Assets:

i) Trade receivables 7 200.48 332.82

ii) Cash and cash equivalents 10A 135.20 196.36

iii) Bank balances other than (ii) above 10B 2.89 2.84

iv) Other financial assets 8B 142.05 93.70

480.60 625.72

c) Other current assets 11B 32.32 56.14

Assets classified as held for sale 12 - -

Total Current assets 2,084.13 2,297.44

Total Assets 10,500.14 11,219.48

Equity and Liabilities

Equity

a) Equity share capital 13 649.93 649.93

b) Instruments entirely equity in nature 14A 10,922.27 -

c) other equity 14B (10246.76) (10,672.19)

Total Equity 1,325.44 (10,022.26)

Liabilities

1 Non-current liabilities

a) financial liabilities:

i) Borrowings 15 3,916.16 16,833.27

ii) Lease Liabilities 9.41 13.25

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b) Provisions 18A 1,604.01 1,542.12

Total non-current liabilities 5,529.58 18,388.64

2 Current liabilities

a) financial liabilities:

i) Borrowings 15 350.00 -

ii) Trade Payables:

- dues to Micro and Small Enterprises 21 1.53 0.84
-dues to other Creditors 21 2,391.84 2,035.92

iii) Lease Liabilities 3.26 2.17

iv) Other financial liabilities 645.94 584.69

3,392.57 2,623.62

b) Provisions 18B 153.38 152.15

c) Other current liabilities 20 99.17 77.33

Total Current Liabilities 3,645.12 2,823.62

Total Liabilities 9,174.70 21,241.74

Total Equity and Liabilities 10,500.14 11,219.48

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GOKAK TEXTILES LTD

BALANCE SHEET AS AT 31ST 2022

Particulars Note As At As At
No March March
31st2022 31st2021
Amt Amt
(Lakhs) (Lakhs)
Assets
1 Non-current assets

a) Property, Plant and Equipment 3 5,563.43 6,143.15

b) Capital work-in-progress - -

c) Right of use Asset 3A 8.66 12.18

d) Investment Property 4 11.35 11.35

e) Intangible assets 5 5.63 7.01

5,589.07 6,173.69

f) Financial Assets:

i) Investments

a) Investments in Subsidiaries 6 2,499.00 2,499.00

b)Other Investments 6 0.03 0.03
2,499.03 2,499.03

ii)Other financial assets 8A 141.49 243.35

g) Tax assets

i) Deferred tax assets (net) 19 - -

ii) Income tax assets (net) 22 66.97 68.42

h) Other non-current assets 11A 625.48 628.44

8,922.04 9,612.93
Total Non-current assets

2 Current assets

a) Inventories 9 1,599.29 1,837.33

b) Financial Assets: 7 332.82 516.63

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i) Trade receivables 10A 196.36 338.25

ii) Cash and cash equivalents 10B 2.84 2.77

iii) Bank balances other than (ii) above 8B 93.70 294.96

iv) Other financial assets 625.72 1,152.61

c) Other current assets 11B 56.14 69.40

Assets classified as held for sale 12 16.29 17.60

Total Current assets 2,297.44 3,076.94
Total Assets 11,219.48 12,689.87

Equity and Liabilities

Equity
a) Equity share capital 13 649.93 649.93

b) Other equity 14 (10,672.19) (7,441.31)

Total Equity (10,022.26) (6,791.38)

Liabilities
1 Non-current liabilities

a) Financial liabilities:

i) Borrowings 15 16,833.27 13,791.75

ii) Lease Liabilities 18A 13.25 15.42

16,846.52 13,807.17
b) Provisions 1,542.12 1,438.67

Total non-current liabilities 18,388.64 15,245.84

2 Current liabilities

a) Financial liabilities:
i) Lease Liabilities 21 2.17 3.81

ii) Trade Payables:

- dues to Micro and Small Enterprises 0.84 21.44
-dues to other Creditors 2, 035.92 3,401.03

iv) Other financial liabilities 17 584.69 564.71

2,623.62 3,990.99
b) Provisions 18B 152.15 150.17
c) Other current liabilities 20 77.33 94.25
Total Current Liabilities 2,853.10 4,235.41

Total Liabilities 21,241.74 19,481.25

Total Equity and Liabilities 11,219.48 12,689.87

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GOKAK TEXTILES LTD

BALANCE SHEET AS AT 31ST 2021

Particulars Note As at As at
No March 31, March 31,
2021 amt 2020 amt
(Lakhs) (Lakhs)
Assets
1 Non-current assets

a) Property, Plant and Equipment 3 6,143.15 6,770.01

b) Capital work-in-progress - 0.39

c) Right of use Asset 3A 12.18 19.72

d) Investment Property 4 11.35 11.35

e) Intangible assets 5 7.01 7.47

6,173.69 6,808.94
e) Financial Assets:

i) Investments
a) Investments in Subsidiaries 6 2,499.00 2,499.00
b) Other Investments 6 0.03 0.03
2,499.03 2,499.03
ii)Other financial assets 8A 243.35 137.19
2,742.38 2,636.22
g) Tax assets

i) Deferred tax assets (net) 19 - -

ii) Income tax assets (net) 22 68.42 87.88

68.42 87.88

h) Other non-current assets 11A 628.44 925.21

Total Non-current assets
9,612.93 10,458.25
2 Current assets

a) Inventories 9 1,837.33 2,009.94

b) Financial Assets:

i) Trade receivables 7 516.63 596.09

ii) Cash and cash equivalents 10A 338.25 263.06

iii) Bank balances other than (ii) above 10B 2.77 2.68

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iv) Other financial assets 8B 294.96 515.97

1,152.61 1,377.80

c) Other current assets 11B 69.40 69.84

Assets classified as held for sale 12 17.60 17.60

Total Current assets 3,076.94 3,475.18
Total Assets 12,689.87 13,933.43

Equity and Liabilities

Equity

a) Equity share capital 13 649.93 649.93

b) Other equity 14 (7,441.31) (3,729.23)

(6,791.38) (3,079.30)
Total Equity

Liabilities

1 Non-current liabilities
a) Financial liabilities:
i) Borrowings 15 13,791.75 12,115.34
ii) Lease Liabilities 15.42 19.23
13.807.17 12,134.57
b) Provisions 18A 1,438.67 1,316.80
Total Non-current liabilities
15,245.84 13,451.37
2 Current liabilities

a) Financial liabilities:
i) Lease Liabilities 21 3.81 7.45

ii) Trade Payables:

- dues to Micro and Small Enterprises 21.44 12.43
-dues to other Creditors 3,401.03 2,841.67

iii) Other financial liabilities 564.71 628.02

3,990.99 3,489.57
b) Provisions 18B 150.17 16.67

c) Other current liabilities 20 94.25 55.12

Total Current Liabilities 4,235.41 3,561.36

Total Liabilities 19,481.25 17,012.73

Total Equity and Liabilities 12,689.8 13,933.43

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GOKAK TEXTILES LTD

BALANCE SHEET AS AT 31ST 2020

Particulars Note As At As At
No March March 31st
31st 2020 2019 Amt
Amt (Lakhs)
(Lakhs)
Assets
1 Non-current assets

a) Property, Plant and Equipment 3 6,770.01 7,349.67

b) Capital work-in-progress 0.39 -

c) Right of use Asset 3A 19.72 -

d) Investment Property 4 11.35 11.35

e) Intangible assets 5 7.47 0.28

6,808.94 7,361.30

f) Financial Assets:

i) Investments

a) Investments in Subsidiaries 6 2,499.00 2,499.00

b) Other Investments 6 0.03 0.03

2,499.03 2,499.03

ii)Other financial assets 8A 137.19 242.38

2,636.22 2,741.41
g) Tax assets

i) Deferred tax assets (net) 19 - -

ii) Income tax assets (net) 23 87.88 64.57

87.88 64.57

h) Other non-current assets 11A 925.21 1,161.23

Total non-current assets 10,458.25 11,328.51

2 Current assets

d) Inventories 9 2,009.94 2,472.21

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b) Financial Assets:

i) Trade receivables 7 596.09 868.44

ii) Cash and cash equivalents 10A 263.06 20.08

iii) Bank balances other than (ii) above 10B 2.68 4.00

iv) Other financial assets 8B 515.97 470.89

1,377.80 1,363.41

c) Other current assets 11B 69.84 61.31

Assets classified as held for sale 12 17.60 68.15

Total Current assets 3,475.18 3,965.08
Total Assets 13,933.43 15,293.59

Equity and Liabilities

Equity

a) Equity share capital 13 649.93 649.93

b) Other equity 14 (3,729.23) 755.81

Total Equity (3,079.30) 1,405.74

Liabilities

1 Non-current liabilities

a) Financial liabilities:

i) Borrowings 15 12,115.34 2,556.15

ii) Lease Liabilities 19.23 -

12,134.57 2,556.15
b) Provisions 18A 1,316.80 3,742.68
Total Non-current liabilities 13,452.37 1,186.53

2 Current liabilities

a) Financial liabilities:

i) Borrowings 21 - 6,481.73

ii) Trade Payables: 22

- dues to Micro and Small Enterprises 12.43 1.49
-dues to other Creditors 2,841.67 2,980.82

iii) Lease Liabilities 7.45 -

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iv) Other financial liabilities 17 628.02 597.60

3,489.57 10,061.64
b) Provisions 18B 16.67 10.76

c) Other current liabilities 20 55.12 72.77

Total Current Liabilities 3,561.36 10.145.17

Total Liabilities 17,012.73 13,887.85

Total Equity and Liabilities 13,933.43 15,293.59

Notes to Accounts: II)

2023-24 amounts changes in the Balance Sheet, because of Gokak Textiles Ltd. taken
over the SOEPL (Suryoday One Energy Private Ltd.). The Amount fluctuates in the
books of Accounts.

Particulars Amount (In

Lakhs)
Aggregate carrying amount of Assets of SOEPL taken over 26,475.43

Aggregate carrying amount of Liabilities of SOEPL taken over 27078.39

Retained earning of SOEPL taken over (Debit Balance) (3,631.59)

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DATA ANALYSIS & INTERPRETATION

 Current Ratio
Current Ratio may be defined as the relationship between current assets & current
Liabilities. It is calculated by dividing the total of current assets by total of the
current liabilities.

Current Ratio = Current assets

Current liabilities
(Amt in Lakhs)
Years Current Assets Current Liabilities Ratio’s
2020 3475.18 3561.36 0.9758
2021 3076.94 4235.41 0.7264
2022 2297.40 2853.10 0.8052
2023 2084.13 3645.12 0.5717
2024 3757.58 9141.98 0.4110

Current Ratio

9141.98

3561.36 4235.41
2853.1 3645.12
3475.18 3076.94 3757.58
2297.4 2084.13

2020 2021 2022 2023 2024

Current Assests Current Laibilites

Interpretation
The chart show that the current ratio is fluctuating year by year. In the year 2019-20 is
0.9758 it decreased to 0.7264 during the year 2020-21 and it is increased to 0.8052
during the year 2021-22 ad it is continuously falling in the following year 0.4110 in the
year 2023-24.
The current ratio if 2:1 is considered to be ideal. It means current assets should be twice
of current liability to provide for sufficient working capital after meeting current
liabilities efficient use of funds.

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 Debt to Equity Ratio

A debt-to-equity ratio indicated the relationship between long term debt and
shareholder’s funds. It is determined to measure the firm’s debt in the business. This
is also called as external and internal equity ratio.
Debt To Equity Ratio = External Equities (long term debts)
Internal Equities (Shareholders Funds)
(Amt in Lakhs)

Years External Equities Internal Equities Ratios

(long term debts) (shareholders Fund)
2020 12115.34 22700.00 0.5337
2021 13791.75 22700.00 0.6075
2022 16833.27 22700.00 0.7415
2023 3916.16 22700.00 0.1725
2024 24386.57 26700.00 0.9133

Debt to Equity Ratio

External Equities Internal Equities

2024 24386.57 26700

2023 3916.16 22700

2022 16833.27 22700

2021 13791.75 22700

2020 12115.34 22700

Interpretation
The chart shows that the debt-to-equity ratio is fluctuating year by year. In the year
2019-20 is 0.5337 and it increased to 0.6075 during the year 2020-21 and again
increased to 0.7415 during the year 2021-22. In the year 2022-23 decreased 0.1725 and
it is continuously increased in the following year 0.9133 in the year 2023-24.
A debt equity ratio standard ratio is 2:1 debt is more than 2 times of the equity it
indicates that the financial structure is weak. It helps to identify the proportion of
shareholder’s stake in the business. It indicates the extent to which the firm depends
upon outsiders for its existence.
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 Debt Ratio

It measures the proportion of a company’s total assets financed by debt, indicating

its level of indebtedness and solvency.

Debt ratio = Total liabilities/ Total assets

(Amt in Lakhs)
Year Total liabilities Total Assets Ratios
2020 17012.73 13933.43 1.2209
2021 19481.25 12689.80 1.5351
2022 21241.74 11219.48 1.8932
2023 9174.70 10500.14 0.8737
2024 34318.34 37910.08 0.9052

DEBT RATIO
Total liabilities Total Assets

37910.08

12689.8 11219.48
13933.43
34318.34
10500.14
17012.73 19481.25 21241.74
9174.7

2020 2021 2022 2023 2024

Interpretation:

The chart show that the debt ratio is fluctuating year by year. In the year 2019-20 is
1.2209 it increased to 1.5351 during the year 2020-21 and it is again increased to 1.8932
during the year of 2021-22. It is continuously falling in the years 0.8737 and 0.9052 in
the years 2022-23 and 2023-24.

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 Cash Ratio

The cash ratio measures a company ability to pay of short-term liabilities

with cash and cash equivalents:

Cash Ratio = cash and cash equivalents /current liabilities

(Amt in Lakhs)
Year Cash and Cash Current Liabilities Ratio’s
equivalents
2020 263.06 3561.36 0.0738
2021 338.25 4235.41 0.0798
2022 196.36 2853.10 0.0688
2023 135.20 3645.12 0.0370
2024 683.04 9141.38 0.0741

CASH RATIO
Cash and Cash equivalents Current Liabilities

2024 683.04 9141.38

2 0 2 3 135.2 3645.12

2 0 2 2 196.36 2853.1

2 0 2 1 338.25 4235.41

2 0 2 0 263.06 3561.36

Interpretation
The company does not have enough cash to pay its short-term debts. It should save
more cash or reduce its debts to improve its financial situation. The chart show that
the cash ratio is fluctuating year by year. In the year 2019-20 is 0.0738. It increased to
0.0798 during the year 2020-21 and it is decreased to 0.0688 during the year of 2021-
22 and again decreased to 0.0370 during the year 2022-23. It is increased in the
following year 0.0741 in the year 2023-24.
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 Operating Cash flow Ratio

The Operating cash flow ratio is a measure of the number of times a company
can pay off current liabilities with the cash generated in a given period:

Operating Cash flow ratio = Operating cash flow /current liabilities

(Amt in Lakhs)
Year Operating Cash Current liabilities Ratio
Flow
2020 1952.22 3561.36 0.5481
2021 462.86 4235.42 0.1092
2022 1896.95 2853.10 0.6648
2023 1130.44 3645.12 0.3101
2024 1134.99 9141.38 0.1241

Operating Cash Flow

10000
9000 9141.38
8000
7000
6000
5000
4000 4235.42
3561.36 3645.12
3000 2853.1
2000 1952.22 1896.95
1000 1130.44 1134.99
462.86
0
2020 2021 2022 2023 2024

Operating Cash Flow Current liabilites

Interpretation:

The chart show that the operating cash flow ratio is fluctuating year by year. In the
year 2019-20 was 0.5481 it decreased to 0.1092 during the year 2020-21 and it is
increased to 0.6648 during the year 2021-22. It is decreased to 0.3101 during the year
2022-23 and it is continuously falling in the year 0.1241 in the year 2023-24.

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 Return on Assets Ratio

The return on assets ratio measures how efficiently a company is using its
assets to generate profit.

Return on Assets Ratio= Net Income / Total Assets

(Amt in Lakhs)
Year Net Income Total Assets Ratio
2020 10216.40 13933.43 0.7332
2021 10907.35 12689.87 0.8595
2022 12411.53 11219.48 1.1062
2023 8246.67 11500.14 0.7871
2024 13462.33 37910.08 0.3551

RETURN ON ASSETS RATIO

Net Income Total Assets

2024 13462.33 37910.08

2023 8246.67 11500.14

2022 12411.53 11219.48

2021 10907.35 12689.87

2020 10216.4 13933.43

Interpretation:

The chart show that the return on assets ratio is fluctuating year by year. In the year
2019-20 0.7332 it increased to 0.8595 during the year 2020-21 and it is again increased
to 1.1062 during the year of 2021-22. it is continuously falling in the years 0.7871 and
0.3551 in the year 2022-23 and 2023-24.

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 Gross Profit Ratio

Gross Profit is one of the commonly used ratio. It reveals the result of trading
operations of the business; in other words, it indicates to us the profitability of the
business.

Gross Profit = gross profit *100

sales

(Amt in Lakhs)
Year Gross Profit Sales Ratio’s
2020 10216.41 9821.96 104.0160
2021 10907.35 10670.66 116.3145
2022 12411.53 12008.89 103.3528
2023 8264.6 7902.73 104.5790
2024 13462.33 12746.88 105.6127

Gross Profit Ratio

30000
25000
20000 12746.88
12008.89
9821.96 10670.66
15000
7902.73
10000
10907.35 12411.53 13462.33
10216.41 8264.6
5000
0
2020 2021 2022 2023 2024

Gross Profit Sales

Interpretation:

The chart show that the gross profit ratio is fluctuating year by year. In the year
2019-20 104.0160 in increased to 116.3145 during the year of 2020-21 and it is
continuously falling in the flowing years 103.3528 and 104.5790 in the years 2021-22
and 2022-23. It is increased to 105.6127 during the year 2023-24.

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 Net Profit Ratio

Net Profit after tax with the help of this ratio the efficiency of the management
in manufacturing selling administrative and other activities of the firm can by
assessed. This ratio is the overall measure of firm’s profitability.

Net Profit Ratio = Net profit after tax *100

Net sales
(Amt in Lakhs)
Year Net Profit After Tax Net Sales Ratio
2020 4458.80 9821.96 45.396
2021 3687.23 10670.66 34.554
2022 3258.63 12008.89 27.135
2023 3233.87 7902.73 40.920
2024 1756.70 12746.88 13.781

Net Profit Ratio

Net Profit After Tax Net Sales Column1

2024 1756.7 12746.88

2023 3233.87 7902.73

2022 3258.63 12008.89

2021 3687.23 10670.66

2020 4458.8 9821.96

Interpretation:

The chart show that the net profit ratio is fluctuating year by year. In the year 2019-20
45.396 and it is continuously decreased in the years 34.554 and 27.135 in the years
2020-21 and 2021-22. During the next year 2022-23 increased to 40.920 and it is
decreased to 13.781 during year 2023-24.
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 Proprietary Ratio or Equity Ratio or Total Assets Rati

A proprietary ratio or equity ratio refers to a financial metric that calculates the
of company’s total assets funded by shareholders equity.

Proprietary Ratio= Shareholder’s Funds / Total Assets

(Amt in Lakhs)
Years Shareholders’ Total Assets Ratio
Funds
2020 22700.00 13933.43 1.629
2021 22700.00 12689.87 1.788
2022 22700.00 11219.48 2.023
2023 22700.00 10500.14 2.161
2024 26700.00 37910.08 0.704

Proprietary Ratio
40000
35000
30000 13933.43 12689.87 11219.48 10500.14
25000
20000
15000
10000 22700 22700 22700 22700
5000
0
2020 2021 2022 2023

Shareholders’ Funds Total Assets

Interpretation:

The chart show that the proprietary ratio or equity ratio or total assets ratio is fluctuating
year by year. In the year 2019-20 was 1.629 and it is increased to 1.788 during the year
2020-21. It is continuously increased in the following years 2.023 and 2.161 in the years
2021-22 and 2022-23. It is decreased to 0.704 during the year 2023-24.

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 Equity Current Asset Ratio

The equity to asset ratio is a financial metric that measures the percentage of
company’s assets that are financed by equity.

Equity current asset ratio= Current assets / Shareholders Funds

(Amt in Lakhs)
Year Current Assets Shareholders fund Ratio
2020 3475.18 22700.00 0.1530
2021 3076.94 22700.00 0.1355
2022 2297.40 22700.00 0.1012
2023 2084.13 22700.00 0.0918
2024 3757.58 26700.00 0.1407

Equity Current Asset Ratio

Current Assets Shareholders fund

2024 3757.58 26700

2023 2084.13 22700

2022 2297.4 22700

2021 3076.94 22700

2020 3475.18 22700

Interpretation:

The chart show that the equity current assets ratio is fluctuating year by year. In the year
2019-20 0.1530 and it decreased to 0.1355 during the year 2020-21. It is continuously
falling in the following years 0.1012 and 0.0918 in the years 2021-22 and 2022-23. It
is increased to 0.1407 during the year 2023-24.

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CHAPTER 4

CONTENTS:

4.1 Findings

4.2 Suggestions

4.3 Conclusion

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FINDINGS:
 The current ratio decreased from 0.9758 in 2019-2020 to 0.7264 in 2020-21, and
then decreased again from 0.8052 in 2021-22 to 0.4110 in 2022-23 and 2023-24,
indicating a decline in the company's liquidity position. The current ratio increased
to 0.8052 in 2021-22, indicating a temporary improvement in the company's
liquidity position. The current ratio decreased significantly to 0.4110 in 2022-23
and 2023-24, indicating a substantial decline in the company's liquidity position.
 The debt-to-equity ratio increased consecutively for three years, from 0.5337 in
2019-20 to 0.6075 in 2020-21 and 0.7415 in 2021-22, indicating an increasing
reliance on debt financing. The debt-to-equity ratio decreased significantly to
0.1725 in 2022-23, indicating a substantial reduction in debt levels. The debt-to-
equity ratio increased sharply to 0.9133 in 2023-24, indicating a significant increase
in debt levels.
 The debt ratio increased consecutively for three years, form 1.2209 in 2019-20 to
1.5351 in 2020-19 and 1.8932 in 2021-22. The debt ratio reached its peak at 1.8932
in 2021-22, indicating a high level of indebtedness. The debt ratio decreased
substantially from 1.8932 in 2021-22 to 0.737 in 2022-23 and 0.9052 in 2023-24.
 The cash ratio has been consistently low, indicating that the company may struggle
to pay its short-term debts. The cash ratio has been fluctuating year by year,
indicating uncertainty and volatility in the company’s cash position. The cash ratio
decreased from 0.0798 in 2020-21 to 0.688 in 2021-22 and further to 0.0370 in
2022-23, indicating a worsening cash position. The cash ratio increased to 0.0741
in 2023-24, indicating a slight improvement in the company’s cash position.
 The operating cash flow ratio has been fluctuating year by year, indicating
uncertainty and volatility the company’s cash flows. The ratio decreased from
0.5481 in 2019-20 to 0.1092 in 2020-21, indicating a significant deterioration in
cash flows. The ratio increased to 0.6648 in 2021-22, indicating a temporary
improvement in cash flows. The decreased to 0.3101 in 2022-23 and further to
0.1241 in 2023-24 indicating a consistent decline in cash flows.

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 The return on assets ratio increased consecutively for three years, from 0.7332 in
2019-20 to 0.8595 in 2020-21 and 1.1062 in 2021-22, indicating improving assets
utilization and profitability. The return on assets ratio reached its peak at 1.1062 in
2021-22, suggesting optimal assets utilization and profitability. The return ratio
decreased to 0.7871 in 2022-23 and 0.3551 in 2023-24, indicating a decline in assets
utilization and profitability.
 The gross profit ratio increased form 104.0160 in 2019-20 is 116.3145 in 2020-21,
indicating improving profitability and cost management. The gross profit ratio
decreased consecutively for two years, form 116.3145 in 2020-21 to 103.3528 in
2021-22 and 104.5790 in 2022-23, indicating declining profitability and increasing
costs. The gross profit ratio increased to 105.6127 in 2023-24, indicating a recovery
in profitability and cost management.
 The net profit ratio decreased consecutively for three years, from 45.396 in 2019-
20 to 34.554 in 2020-21 and 27.135 in 2021-22, indicating declining profitability.
The net profit ratio increased to 40.920 in 2022-23, indicating a temporary recovery
in profitability. The net profit ratio decreased significantly to 13.781 in 2023-24,
indicating a substantial decline in profitability.
 The proprietary ratio increased consecutively for four years, from 1.629 in 2019-20
to 1.788 in 2020-21, 2.023 in 2021-22, and 2.161 in 2022-23, indicating an
improvement in the company's equity position and reduced reliance on debt. The
proprietary ratio decreased substantially to 0.704 in 2023-24, indicating a
significant decline in the company's equity position and potentially increased
reliance on debt.
 The equity to current assets ratio decreased consecutively for four years, from
0.1530 in 2019-20 to 0.1355 in 2020-21, 0.1012 in 2021-22, and 0.0918 in 2022-
23, indicating a decline in the company's equity relative to its current assets. The
ratio increased to 0.1407 in 2023-24, indicating a reversal of the declining trend and
a slight improvement in the company's equity position relative to its current assets.

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 An Evaluation of Financial Performance of Gokak Textiles Ltd. Gokak

 SUGGESTIONS:
 It is suggested that Gokak Textiles Ltd. The Operational efficiency
leverages solar capacity, optimize raw material sourcing and digitize
operations for cost savings.
 The industry should have sales promotion measures maintain a good quality
in production as same as earlier. In which helps company survival long
period in the market as well as industry.
 Industry has to appoint skilled and qualified employees and modern
technology which helps in increase, efficiency and quality of firm.
 Liquidity position has been declining, with a temporary improvement in
2021-22. The significant decline in 2022-24 indicates a need for the
company to address its liquidity issues and implement strategies to improve
its current ratio.
 Capital structure has been volatile, with periods of increasing debt reliance
followed by significant reductions and then sharp increases. This may
indicate a need for the company to adopt a more stable and sustainable
capital structure strategy.
 It is suggested that the industry is facing challenges in generating consistent
and stable cash flows, which may impact its ability to meet its financial
obligations and invest in growth initiatives.
 The industry's asset utilization and profitability improved significantly
between 2019 and 2022 but declined thereafter, indicating a need to revisit
its asset management and profitability strategies.
 It is suggested that the industry profitability and cost management have been
volatile, with periods of improvement and decline. However, the recent
recovery in 2023-24 indicates a positive trend.
 The industry should focus on improving cash flow management and
reducing reliance on liabilities to stabilize the operating cash flow ratio.
 The industry should have sales promotion measures maintain a good quality
in production as same as earlier. In which helps company survival long
period in the market as well as industry.

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 An Evaluation of Financial Performance of Gokak Textiles Ltd. Gokak

CONCLUSION:

The study about evaluation of financial performance has been undertaken at

that Gokak Textiles Ltd. Which producing huge amount of quality cotton
products in economical cost, the place like Gokak is most suitable place for
cotton production because easy availability of raw material cotton from former.

The industry's financial performance was extremely good since from last 5
years. As per the research concern few of the financial aspects are plumbing but
most of the things are in right position.

Industry should concentrate on producing quality cotton products and

maintains the sound financial plan. It helps industry to survive longer time with
same spirit and enthusiasm performance as in the current financial year. It can
earn more profits in all the depth of the industry performance and the finance
department function efficiency by following modern business practices.

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 An Evaluation of Financial Performance of Gokak Textiles Ltd. Gokak

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 Websites:
1) http://www.gokaktextiles.com
2) http://www.spgroupofindia.com
3) http://www.googlescholor.com
4) http://www.gokakmills.com/mainframe1company.htm
5) http://www.gokakmills.com

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PHOTO GALLERY

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