Green Heaven Institute of Management and Research, Nagpur

A Report on

Summer Internship Program 2022

“To Maintain Accounts and Financial Statements of M/s Gimatex

Industries Private Limited, Hinganghat, Dist-Wardha”

Submitted to

Rashtrasant Tukadoji Maharaj Nagpur University,

Nagpur

In partial fulfillment of the requirement of the degree of

Master of Business Administration

Submitted by

Mr. Noor Qureshi

Enrollment No.: 2013016600922326

Under the Guidance of

Dr. Rajani Kumar

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 Academic Year 2022

CERTIFICATE

This is to certify that Mr. Noor Qureshi, student of

M.B.A. at Green Heaven Institute of Management and Research, Nagpur, has successfully
completed his Summer Internship Program 2022, in the organization M/s Gimatex
Industries Private Limited from 01-08-2022 to 31-10-2022.

We wish him all success for the future.

Signature of the Company Guide:

Name of the Company Guide: Mr. Rahul Bokde

Designation of the Company Guide: General Manager (Finance)

Stamp/Seal of the Company:

Date: 10/11/2022

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 CERTIFICATE

We hereby certify that Mr. Noor Qureshi Enrollment No.: 2013016600922326, A student
of M.B.A. at Green Heaven Institute of Management and Research has successfully
completed his Summer Internship Program 2022

“To Maintain Accounts and Financial Statements of M/s Gimatex

Industries Private Limited, Hinganghat, Dist-Wardha”

From 01/08/2022 to 31/10/2022.

The student has submitted the Final Report and has completed the evaluation process.

Dr. Anil Sharma Dr. Rajani Kumar

DIRECTOR FACULTY GUIDE

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 DECLARATION

I, Noor Qureshi hereby declare that with the suggestions and guidance received from my
guide, Dr. Rajani Kumar, this project work “TO WORK IN A FINANCE
DEPARTMENT & TAKE CARE OF VARIOUS ACTIVITIES AT M/S GIMATEX
INDUSTRIES PRIVATE LIMITED, HINGANGHAT, DIST-WARDHA” is my own hard
work. This project as one, which is substantially the same as this, has not been submitted
by me for any other examination of this university or any other university.

PLACE : Nagpur Noor Qureshi

DATE : 10/11/2022

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 ACKNOWLEDGEMENT

It is my pleasure to place sincere gratitude towards our Director Dr. Anil Sharma Sir
& my guide Dr. Rajani Kumar, who spent her precious time providing continuous and
expert guidance to my project work. It was her direction and encouragement at every
moment and step that motivated me to steer the research work confidently and
successfully.

I am also grateful to director for encouragement morale support and the valuable
guidance. I am indebted to my work successfully. I am also thankful to all those who
have directly or indirectly helped me for this project work.

Noor Qureshi

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 UNDERTAKING

I, Noor Qureshi hereby undertake that the project work entitled “TO WORK IN A
FINANCE DEPARTMENT & TAKE CARE OF VARIOUS ACTIVITIES AT M/S
GIMATEX INDUSTRIES PRIVATE LIMITED, HINGANGHAT, DIST-WARDHA” is
my own work and to the best of my knowledge and beliefs is not submitted to any
university for any degree.

Noor Qureshi

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 INDEX

PAGE
CHAPTER CHAPTER NAME NO.
NO.

PART-1

A COMPANY PROFILE 08-10

B SECTOR OVERVIEW 11-15

PART-2

A ACTUAL WORK DONE 16-18

19
PROBLEMS FACED DURING SIP AND LEARNING
B
FROM SIP

C CONCLUSION 20

D APPENDICES 21-22

BIBLIOGRAPHY
E 23

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 PART – 1
_________________________

A ] COMPANY PROFILE

Late Shri Raisaheb Rekhchandji Mohota migrated from Rajasthan to Hinganghat way back in 1868

in search of opportunities. This was the time when the wave of industrial revolution was sweeping

across the country. Hinganghat then was one of the richest cotton belts in the country. This decision

to migrate & set up a textile unit in Vidarbha resulted as a stepping stone towards the company’s

success.

The Victory Saga of this battleground is a contribution of 6 generation warriors of the Mohota

Family who continue to put in their tireless diligence in the successful functioning of the company.

The man who started this triumphant journey – Late Shri Raisaheb Rekhchandji Mohota,

established the textile unit of Raisaheb Rekhchand Mohota Spinning and Weaving Mills Ltd.

known as RSR Mohota Mills way back in the year 1898.

Gimatex Industries Pvt. Ltd. , established in the year 1993, was set up with a vision to provide

premium quality textile products to its customers using the Latest in textile technology. The

company continuously invests in upgraded technology, people and infrastructure. Run by a highly

dynamic and experienced management and supported by a strong skilled workforce of 5000 people

the group has become a strong player in the market and a name to reckon with.

Today Gimatex is a completely integrated textile facility with Ginning, Spinning, Weaving &

Processing units under its fold. Its plant are located in the heart of cotton growing belt of India

which ensures shorter lead times and quality selection of its raw materials.

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It is also part of the 1st Integrated textile park project of Vidarbha under the centre’s SITP scheme.

Also the company has diversified into the area of Scientific Cotton-Seed Processing by setting up a

first Gossypol free Cotton Seed Protein meal plant along with an integrated Cotton Oil refinery.

Gimatex has thrived using values of innovation, quality, and ethical practices as its pillars of

growth. Stakeholders dealing with the company continue to maintain the relationship on a long

term basis. This association flourishes in the environment of mutual trust that is present between the

company and its business partners and other stakeholders. Our ever-growing sales figure is a

testimony to our customer-centric approach. The company has received numerous awards for its

export performances & Quality systems.

Gimatex Industries Pvt. Ltd. , established in the year 1993, was set up with a vision to provide

premium quality textile products to its customers using the Latest in textile technology. The

company continuously invests in upgraded technology, people and infrastructure. Run by a highly

dynamic and experienced management and supported by a strong skilled workforce of 5000 people

the group has become a strong player in the market and a name to reckon with.

Today Gimatex is a completely integrated textile facility with Ginning, Spinning, Weaving &

Processing units under its fold. Its plant are located in the heart of cotton growing belt of India

which ensures shorter lead times and quality selection of its raw materials. It is also part of the 1st

Integrated textile park project of Vidarbha under the centre’s SITP scheme.

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Gimatex has thrived using values of innovation, quality, and ethical

practices as its pillars of growth:

 Best Quality Standards

 100% Satisfaction Guarantee

 Quality Control System

 Commitment to Customers

 Highly Professional Team

 Digitally Connected

Stakeholders dealing with the company continue to maintain the relationship on a long term basis.

This association flourishes in the environment of mutual trust that is present between the company

and its business partners and other stakeholders. Our ever-growing sales figure is a testimony to our

customer-centric approach. The company has received numerous awards for its export

performances & Quality systems.

Also the company has diversified into the area of Scientific Cotton-Seed Processing by setting up a

first Gossypol free Cotton Seed Protein meal plant along with an integrated Cotton Oil refinery.

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 PART – 1
_________________________

B ] SECTOR OVERVIEW

The Indian textile industry is one of the largest in the world with a massive raw material

and textiles manufacturing base. Our economy is largely dependent on the textile manufacturing

and trade in addition to other major industries. About 27% of the foreign exchange earnings are on

account of export of textiles and clothing alone. The textiles and clothing sector contributes about

14% to the industrial production and 3% to the gross domestic product of the country. Around 8%

of the total excise revenue collection is contributed by the textile industry. So much so, the textile

industry accounts for as large as 21% of the total employment generated in the economy. Around

35 million people are directly employed in the textile manufacturing activities. Indirect

employment including the manpower engaged in agricultural based raw-material production like

cotton and related trade and handling could be stated to be around another 60 million.

A textile is the largest single industry in India (and amongst the biggest in the world), accounting

for about 20% of the total industrial production. It provides direct employment to around 20

million people. Textile and clothing exports account for one-third of the total value of exports from

the country. There are 1,227 textile mills with a spinning capacity of about 29 million spindles.

While yarn is mostly produced in the mills, fabrics are produced in the powerloom and handloom

sectors as well. The Indian textile industry continues to be predominantly based on cotton, with

about 65% of raw materials consumed being cotton. The yearly output of cotton cloth was about

12.8 billion m (about 42 billion ft). The manufacture of jute products (1.1 million metric tons)

ranks next in importance to cotton weaving. Textile is one of India’s oldest industries and has a

formidable presence in the national economy inasmuch as it contributes to about 14 per cent of

manufacturing value-addition, accounts for around one-third of our gross export earnings and

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provides gainful employment to millions of people. They include cotton and jute growers, artisans

and weavers who

are engaged in the organised as well as decentralised and household sectors spread across

the entire-country.

INDIAN TEXTILE INDUSTRY STRUCTURE AND GROWTH:

India’s textile industry is one of the economy’s largest. In 2000/01, the textile and garment

industries accounted for about 4 percent of GDP, 14 percent of industrial output, 18 percent of

industrial employment, and 27 percent of export earnings (Hashim). India’s textile industry is also

significant in a global context, ranking second to China in the production of both cotton yarn and

fabric and fifth in the production of synthetic fibers and yarns.

In contrast to other major textile-producing countries, mostly mostly small-scale, nonintegrated

spinning, weaving, cloth finishing, and apparel enterprises, many of which use outdated

technology, characterize India’s textile sector. Some, mostly larger, firms operate in the

“organized” sector where firms must comply with numerous government labor and tax regulations.

Most firms, however, operate in the small-scale “unorganized” sector where regulations are less

stringent and more easily evaded.

The unique structure of the Indian textile industry is due to the legacy of tax, labor, and other

regulatory policies that have favored small-scale, labor-intensive enterprises, while discriminating

against larger scale, more capital-intensive operations. The structure is also due to the historical

orientation towards meeting the needs of India’s predominately low-income domestic consumers,

rather than the world market. Policy reforms, which began in the 1980s and continued into the

1990s, have led to significant gains in technical efficiency and international competitiveness,

particularly in the spinning sector. However, broad scope remains for additional reforms that could

enhance the efficiency and competitiveness of India’s weaving, fabric finishing, and apparel
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sectors.

Structure Of India’s Textile Industry:

Unlike other major textile-producing countries, India’s textile industry is comprised mostly of

small-scale, non-integrated spinning, weaving, finishing, and apparel-making enterprises. This

unique industry structure is primarily a legacy of government policies that have promoted labor-

intensive, small-scale operations and discriminated against larger scale firms:

 Composite Mills: Relatively large-scale mills that integrate spinning, weaving and,

sometimes, fabric finishing are common in other major textile-producing countries. In

India, however, these types of mills now account for about only 3 percent of output in the

textile sector. About 276 composite mills are now operating in India, most owned by the

public sector and many deemed financially “sick.”

o
(Picture – 1.1)

 Spinning: Spinning is the process of converting cotton or manmade fiber into yarn to be

used for weaving and knitting. Largely due to deregulation beginning in the mid-1980s,

spinning is the most consolidated and technically efficient sector in India’s textile industry.

Average plant size remains small, however, and technology outdated, relative to other

major producers. In 2002/03, India’s spinning sector consisted of about 1,146 small-scale

independent firms and 1,599 larger scale independent units.

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 (Picture – 1.2)

 Weaving and Knitting: Weaving and knitting converts cotton, manmade, or blended

yarns into woven or knitted fabrics. India’s weaving and knitting sector remains highly

fragmented, small-scale, and labor-intensive. This sector consists of about 3.9 million

handlooms, 380,000 “powerloom” enterprises that operate about 1.7 million looms, and

just 137,000 looms in the various composite mills. “Powerlooms” are small firms, with

an average loom capacity of four to five owned by independent entrepreneurs or

weavers. Modern shuttleless looms account for less than 1 percent of loom capacity.

(Picture – 1.3)

 Fabric Finishing: Fabric finishing (also referred to as processing), which includes

dyeing, printing, and other cloth preparation prior to the manufacture of clothing, is also

dominated by a large number of independent, small scale enterprises. Overall, about

2,300 processors are operating in India, including about 2,100 independent units and

200 units that are integrated with spinning, weaving, or knitting units.

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 (Picture – 1.4)

 Clothing: Apparel is produced by about 77,000 small-scale units classified as domestic

manufacturers, manufacturer exporters, and fabricators (subcontractors).

(Picture – 1.5)

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 PART – 2
_________________________

A ] ACTUAL WORK DONE

FINANCE DEPARTMENT:

1) Preparation of Monthly Stock Statement for periodical submission to Bank for Cash
credit Limit enjoying the Company

2) Working on Debtors Outstanding on month end and taking confirmation from

respective concern persons on outstanding balance and Preparation of Debtors
Outstanding report for periodic submission to Bank

3) On month end downloading of all Bank statements online and reconciliation of bank
statement to bring them in agreement with the books of accounts of Gimatex Industries
and doing follow up with concern person for pending reconciliation entries

4) Preparation of daily Fund Flow statement for management

5) Preparation of budgets and forecasts and give feedback with regards to the financial
standing of the company. This information can be used to fulfil the cash needs of each
department, plan company staffing levels, plan asset purchase and expansions at
minimum cost before they become necessary.

6) Financing mix that could yield the company the best profit and also help them source
longer-term financing at the lowest cost such that there is a profit level of liquidity

7) Working of Advance Tax and Payment

8) Opening procedure of Letter of Credit and documentation required to upload on site

online

Documents required for a Letter of Credit

 Shipping Bill of Lading.

 Airway Bill.
 Commercial Invoice.
 Insurance Certificate.
 Certificate of Origin.
 Packing List.
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  Certificate of Inspection

9) Carrying out supplier reconciliation in order to filter out those supplier invoices for
which payment has not been effected against

10) Reviewing entered data for identification of any data entry error for example wrong
treatment

11) Preparation, generation and posting of Tax Invoices relating to payee, withholding tax

12) Study of Cash Credit/Term Loan/Overdraft Documentation:

a) Borad Resolution
b) Certificate of Authorization
c) Directors KYC
d) Company PAN
e) CIBIL Report
f) Mortgage Documentation
g) Payment of Stamp Duty
h) Hypothecation Agreement
i) Sanction Letter
j) Mortgage Property Search Report
k) Fixed Deposit (In case of Overdraft)

13) Interest Calculation of Cash Credit Limit on Monthly basis and comparison with actual
interest charge by Bank and coordinate with respective Bank staff for excess interest
charge if any

14) LEARNING OF VARIOUS RATIO ANALYSIS

a) Debt to Equity Ratio:
Debt to Equity Ratio is also known as leverage ratio. It measured how much
debt a company used to finance its assets. In a simple term, it used to
determine the amount of leverage a company is using. A debt equity ratio is
preferred 1.00 (100%) or lowers than 1.00 (100%).

b) Current Ratio:
Current ratio is a financial ratio that shows the proportion of current assets
to current liabilities. It represents the company’s liquidity. It pays off its
short term and long term obligations

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 c) Return on Equity :
Return on equity is the amount of net income returned as a percentage of
shareholders equity. It also said that ROE is refers to the profit that is generated
as a result of the amount of shareholders equity being financed to generate that
profit.

d) Net Profit Margin:

e) Return on Asset Ratio:

15) Scrutiny of General Ledger and identification error in terms of correct head, narration
16) Preparation of Financial Statements
17) Working of Depreciation as per Income Tax Act, 1961 & as per The Companies Act,
2013

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 PART – 2
_________________________

B ] PROBLEMS FACED DURING SIP AND LEARNING FROM SIP

1) PROBLEMS FACED DURING SIP:

a) 3 Month of Internship too short to Learning Experience, It should be at least 1 Year

b) Due to short period of Internship, Manager not more interested to invest their time
on us
c) Bank Manager’s Least entertain Intern’s
d) Full understanding of subject very hard to get in short time

2) LEARNING FROM SIP:

a) Learned Preparation of Stock Ageing

b) Learned calculations of Debtors Creditors Ageing
c) Bank Reconciliation
d) Documentations of Term Loan, Cash Credit, Over Draft facility,
e) KYC related Documentation
f) Opening of Current account of Corporates
g) Ratio Analysis
h) Dealing with Bank staff & Manager
i) Monthly calculation of Interest on Cash Credit Limit and check with the Actual
Interest charged by Bank
j) Dealing with Company Staff
k) Calculation of Advance Tax working
l) Payment of Advance Tax
m) Preparation of Financial Statements
n) Scrutiny of Debtors & Creditors Ledger and Reconciliations
o) Scrutiny of General Ledger

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 PART – 2
_________________________

C ] CONCLUSION

Gimatex Industries is one of the top private Industries in Vidarbha. Its main
motive is to serve best quality service throughout the world. This report reflects a
clear idea of Company History and its financial performance. I gained my
knowledge for prepare my internship report by doing internship in Gimatex
Industries, Hinganghat, Dist- Wardha. My objective was to know about their
functions, products and services and Corporate Financial strategy and structure. In
Gimatex Industries they are enjoying Term loan facility, Cash Credit, Forward
Contracts, Letter of Credit, Bank Guarantees Current Account.

To identify the success of any organization it is required to give keen sight in each
section of the work place. In Textile Business there are 5 broad categories these
are Gining, Spining, Weaving, Processing and Garmenting and Gimatex Industries
involve in all 5 categories which make it A Integrated Industry. Gimatex Industries
is a Exporter of Yarn and Grey. Gimatex Export are near 500Cr in rupee.

Gimatex Industries is a promising company. At the beginning of the business,

every company has to go through the difficult path of survival. To impress or
attract the customer, to achieve their confidence, the company must execute some
improvements in its marketing and operational areas.

As far as my Learning is concerned, I leaned in my Intern-ship how corporate

work and how corporate finance are structured. I have leaned dealing with
Corporate professional staff, get chance of understanding of there point of view
and way of working. I leaned the Textile process and how it works. Due to my
Internship I get a chance to look closely the process of conversion of Raw cotton
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 into Cotton bale, Cotton bale to Yarn, further Yarn to Grey cloth and at Final
stage Grey cloths to Final Finished product that is cloths.

PART – 2
_______________________
D ] APPENDICES
GIMATEX INDUSTRIES PRIVATE LIMITED
BALANCE AT 31st March 2022 SHEET AS
  Particulars Note No As at March,22 As at March,21
I EQUITY AND LIABILITIES      
  (1) Shareholders’ Funds  
  (a) Share Capital 2 1,125.00 1,125.00
  (b) Reserves and Surplus 3 38,900.90 32,604.88
    40,025.90 33,729.88
  (2) Non-Current Liabilities  
  (a) Long-Term Borrowings 4 27,324.56 25,248.74
  (b) Deferred Tax Liabilities (Net) 5 2,023.35 2,023.35
  (c) Other Long Term Liabilities 6 166.74 128.36
  (d) Long-Term Provisions 7 58.49 -
    29,573.14 27,400.44
  (3) Current Liabilities  
  (a) Short-Term Borrowings 8 16,810.04 22,352.48
  (b) Trade Payables 9 - -
  -Total outstanding dues of micro enterprises   - 24.16
and small enterprises, - -
   
  -Total outstanding dues of creditors other than   12,005.83 9,806.48
  micro enterprises and small enterprises   - -
  (c) Other Current Liabilities 10 5,743.62 5,599.58
  (d) Short-Term Provisions 11 2,136.63 1,160.51
    36,696.12 38,943.21
  Total 1,06,295.16 1,00,073.53
I
I ASSETS  
  (1) Non-Current Assets  
  (a) Property, Plant and Equipment 12
  (i) Tangible Assets   38,699.30 34,368.15
  (ii) Intangible Assets   33.15 35.88
  (iii) Capital Work-In-Progress   898.75 2,795.25

  (b) Non-Current Investments 13 307.21 295.21

  (c) Long-Term Loans and Advances 14 1,349.92 1,193.15

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   (d) Other non-Current Assets 15 475.04 3,595.27

    41,763.36 42,282.89
  (2) Current Assets  
  (a) Inventories 16 26,520.18 27,000.01
  (b) Trade Receivables 17 23,292.29 19,754.50
  (c) Cash and Cash Equivalents 18 1,273.63 2,650.00
  (d) Short-Term Loans and Advances 19 6,332.37 4,887.13
  (e) Other Current Assets 20 7,113.35 3,498.99
    64,531.81 57,790.64
  Total 1,06,295.16 1,00,073.53
       

GIMATEX INDUSTRIES PRIVATE LIMITED

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2022
   
  Particulars Note Year ended Year ended
    No. 31-Mar-2022 31-Mar-2021
    ` `
I Revenue from Operations 21 68,901.00 1,03,004.64
II Other Income 22 30.55 72.69
   
III Total Revenue (I + II)   68,931.55 1,03,077.33
   
IV Expenses  
  Cost of Materials Consumed 23 42,773.42 63,965.90
  Purchases of Stock-in-Trade 24 4,164.36 7,358.93
  Changes in inventories of finished goods , work in 25
-2,732.78 2,079.43
progress and stock-in-Trade
  Employee Benefits Expense 26 3,845.49 6,251.27
  Finance Costs 27 1,646.25 3,093.12
  Depreciation and Amortisation expense 12 1,865.86 3,475.20
  Other Expenses 28 11,088.06 15,441.72
   
  Total Expenses   62,650.67 1,01,665.58
   
V Profit before exceptional and extraordinary   6,280.88 1,411.75
  items and tax  
  Exceptional Items   - -
VI Profit before extraordinary items and tax   6,280.88 1,411.75
  Extraordinary Items   - -
VII Profit before tax   6,280.88 1,411.75
VIII Tax Expense  
  Current Tax 29 - 189.45
  Deferred Tax   - 97.80
    - 287.24
IX Profit after tax   6,280.88 1,124.51
X Earnings Per Share (Basic) 1(B) 99.96 99.96

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 (xvii)

PART – 2
_________________________

D ] BIBLIOGRAPHY

1) Annual Report of Company

2) Bank Sanction Letter

3) Company Official Website - https://gimatex.co.in/

4) Bank of Baroda Official site https://www.bankofbaroda.in/

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