Woriking Capital of Poshak Bari

A Presentation on

Poshak Bari

Submitted to: Abdullah Al Mamun

Assistant Professor & ChairmanDepartment of Business Administration

Z.H. Sikder University of Science and Technology

Group Name: The Edutainers Team

Sl no.

Name ID

1. Sayeda Israt Jahan 1202161322. Md. Sourav Hossain 1202160373. Azaaz Munshi 1202160864. Mijanur Rahman 1202160025. Rita Akter 1202160066. Helena Akter 1202161247. Lamia Asmaul Hosna 120216012

Group Details

Introduction

Garments Company of Dhaka are constitutes as the study area, because of convenience of the field work and easy communication.. we go for garments company and tried taking true information

Scope of the study

We have taken ‘POSAK BARI’ garments company to gather data on the present situation of the garments industries .it situated in Shampur, Dhaka. Showrooms Aziz super market, Dhaka another in Naria, Shariatpur, and one more Showroom in The Sador of these Shariatpur.

Poshak Bari

Raw materials

Buttons Hooks Zippers Tags Label Packing materials: hangers, packing box, polybag Fabric Fiber color

Productin holding period

Order for material  Duration spends to send raw materials into production: Working process

Manufacturing Process:

Make basic pattern: Basic pattern is made manually by pattern master in one base size. Pattern Design. Cutting. Sewing & Assembling. Finishing section.

Manufacturing Process:

Making procedure of Poshak Bari Product:

T-Shirt Polo T-Shirt Pants

The Step-by-step Process of T-shirt: Prepared for produce Raw Materials for shirt Styling Cutting Assembling the front and back Adding pockets Attaching the neckband

Polo t-shirt Direct Sample. Specification Sheet/ Measurement Chart. Actual body size measurements. Ease Allowances. Sewing Allowance.

Pants Direct Sample. Specification Sheet/ Measurement Chart. Actual body size measurements. Sewing Allowance.  Design / Sketch Sample Making

FINANCIAL RESULTS:Due to control of costs and expenses we have been able to achieve earned a net profit. A summarized result for 1 year is given below:

           

    Poshak Bari  

    Income Statement             

  DETAIL   TK. TK.           

  Sales(6 lac per month) 7200000  

  (-)Cost of Goods Sold 2400000  

    Gross Profit   4800000

  (-)Operating Expense 300000  

    EBIT     4500000

  (-)Interest   1200000  

    EBT     3300000

  (-)Tax     660000  

    EAT     2640000

Statement of Financial Position as 1 year is given below:

           

    Poshak Bari    

    Balance Sheet                 

  DETAIL     TK. TK.Current Asset:          Cash         72000000  Inventory       2400000  Account Receivables     1200000  

      Total Current Asset   75600000Poperty, Plant & Equipment:        Land         360000  Equipment       800000  Machine         800000              1960000      Total Asset   77560000Liabilities:          Bank Loan       12000000  Account Payable       1200000        Total Liabilities   13200000Owner's Equity:          Capital           64360000            77560000             

Limitations of the Report:

The survey was conducted in a very short time so we were not able to collect more information. collect more samples. This survey made on crisis situation of Bangladesh, so it was difficult to Only the big and the reputed Garments Company consider here as sample. Lack of experience in this field. Lack of proper authority to conduct the interview program. disclosing some, field. Another limitation of this study is the person’s private information were not

The Financial Ratio of Poshak Bari of 1 year is given below:  Financial Ratios of Poshak Bari:       

       Liquidity Ratio:    1.Current   5.727272727  2.Acid-Test 5.545454545  Leverage Ratio:    1.Debt to Equity 0.186451212  

2. Debt to Total Asset 0.17019082  

       Coverage Ratio:    

1.Interest Coverage 3.75  

       Activity Ratio:    1.RTD   60.83333333  2.PTD   192.1052632  

Inventory Activity:    

1.ITD   365  

2.Total Asset Turnover 0.092831356  

       

Profitabilty Ratio:    

1.Net Profit Margin 36.66666667  

2.ROI   394.9814815  

3.ROE   4.101926663  

       

Operating Cycle: 425.8333333  

       

Cash Cycle 233.7280702  

Comment:

Liquidity Ratio: The current ratio and acid test ratio of the company is increasing and that’s why the company will have a stronger liquidity position.

Leverage Ratio: The debt to equity ratio within expected limit and it is improving of the company. On the other hand, Total assets of the company are increasing because the capital raised from debts.

Activity Ratio: The receivable collection period is within the expected days. The payable turnover in days is increasingly higher than the restricted time period for which company will lose discount or may face some penalty.

Inventory Activity Ratio: The inventory turnover in days is very high but it is decreasing over the period.

Profitability Ratio: The profitability scenario of the company is positive in this year for which company may expand and grow their business.

               

      Working Capital                     1.Raw Material Inventory:      

(Raw Material Inventory/Material Usages*365)  405.555

6                 2.Work In Process(for T-Shirt):        {(WIP/Production cost)*365}     36                 3.Work In Process(for Punjabi):        {(WIP/Production cost)*365}      

45.32009  

               4.Finished Goods:            (Finished Goods Stock/Cost of Goods Sold)     73