ORGANIZATION STUDY WORK REPORT ON

“AN ORGANIZATIONAL STUDY REPORT ABOUT HARISH EXPORTS”

BY
R. NAGENDRA PRASAD
(1HK20BA029)
SUBMITTED TO

VISVESVARYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE
DEGREE OF “MASTER OF BUSINESS ADMINISTRATION”

UNDER THE GUIDENCE OF:

INTERNAL GUIDE: EXTERNAL GUIDE:
Prof. SUPRIYA A. R MISS. USHA
Asst. prof., Finance and Accounting
Dept. of MBA Harish Exports
HKBKCE, Bengaluru. Bengaluru.

HKBK COLLEGE OF ENGINEERING

DEPARTMENT OF MANAGEMENT STUDIES
BENGALURU-560045
OCTOBER- 2021

1
 HARISH EXPORTS
MANUFACTURER& EXPORTER OF REAYMADE GARMENTS

Date: 02-1 1-2021

TO WHOM IT MAY CONCERN

This is certify that Mr. R Nagendra Prasad. u student of MBA (Major in Finance). HKBKCollege Of
Engineering Bangalore. has successfully completed month (From 27-09-2021 to 30-10-2021) .
Internship programme at Harish Exports. During the period of his internship programme with us he
was found punctual, hardworking and inquisitive.

We wish him all the best for his future endeavors.

For Harish Exports

2
 DECLARATION

I NAGENDRA PRASAD, hear by declares that the organization study report titled “A STUDY OF
THE ORGANATION WITH REFERENCE TO HARISH EXPORTS” Bagepalli near toll
plaza, Bangalore was prepared by me for partial fulfilment of the requirements for the award of the
degree of MBA (MASTER OF BUSINESS ASMINISTARTION) under VISVESVARAYA
TECHNOLOGICAL UNIVERSITY, BELAGAVI.

I declare that this organization study report was done by me under the guidance of project internal
guide Prof. Supriya A.R, Asst. Prof., MBA Department, HKBK college of engineering and
external guide MISS. USHA, Finance and accounting executive, Harish Exports, Bagepalli near toll
plaza, Bangalore. The organization study report was prepared based on 4-weeks of organizational
study as per university requirement.

I also hear by declare that this report is based on the original study undertaken by me and has not
been submitted for the award of any degree/diploma from any other University/Institution.

Place : Bangalore

Date : Signatureofthestudent

3
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to the founder and chairman of HKBK
College of engineering, Sri C.M IBRAHIM, former union minister, and also to the director of the
college Mr. C.M FAIZ MOHAMMED for providing me with facilities to do my Organizational
study.

I am highly indebted to the principal DR. Bhagya Shekar for his continuous support and
guidance in completing my organization study.

I am thankful to Prof. Supriya A.R, Asst. prof., , Department of management studies,

HKBK college of engineering, for her valuable advice and cooperation for carrying out the
Organization study

I owe my deep gratitude to my faculty and internal project guide Prof. Supriya A.R,
Department of management studies for her guidance till the completion of the Organization study.

I respect and thank MISS.USHA, Finance and Accounting executive, Harish exports for
providing me an opportunity to do organization study in the HARISH EXPORTS and giving all
support and guidance, which made me complete the organization study duly. I am extremely
thankful to Her for providing such a nice support and guidance, although she had busy schedule
managing the corporate affairs.

I am thankful to and fortunate enough to get constant encouragement, support and guidance
from all MBA faculties which helped me in successfully completing the organization study.

At least but not the least I would to thank my family and friends for their continuous help
and support.

Place : Bangalore Nagendra prasad

4
 TABLE OF CONTENTS
S.N TOPIC PAGE
O NO.

1 CHAPTER-1
Introduction about the 02-13
Organization study, Industry
profile.
2 CHAPTER-2
Organization profile:
a) Background & Nature of the business. 15-21
b) Vision – Mission, Quality policy.
21-22
c) Product/Service profile.
22-23
d) Ownership pattern.
23
e) Future growth and Prospects.
24
3 CHAPTER-3
McKinsey’s 7s frame work and 24-39
Porters five force model with
special reference to organization
under study.
4 CHAPTER-4
SWOT analysis. 40-43

5 CHAPTER-5
Analysis of Financial statement. 44-53

6 CHAPTER-6
Learning experience. 54-56

7 BIBLIOGRAPHY
Annexure 57-58

5
 EXECUTIVE SUMMARY
The study of work life balance in Harish Exports Garments is done by keeping employee's
perception, attitude family responsibilities as an important parameter in balancing both work and
life activities. The study has been conducted in competitive environment for developing qualitative
study. The term work life balance was coined in 1986, although its usage in everyday language was
sporadic for a number of years.

The purpose of the study is to understand the work life balance issues of employees at work, to
know the management support towards employees in improving quality of work life, to know the
work life balance practices applied by employees and to provide suggestion to improve employee's
work life balance.

The data collection is done by both primary and secondary data, in order to reach its
objectives. A structured questionnaire was used to collect primary data. The required secondary data
was collected from the industry reports, journals, HR magazines, company brochures and internet.

Employee's attitude, responsibility and behaviour towards their work and life issues were analysed.

Work life is about people having a measure of control over when, where and how they work. The
study is done to analyse work life balance issues and to introduce policies and programs to minimise
the work stress, boredom, exhaustiveness of the employees in the company, which is the best
essence for motivating employees to work harder so that the profit level of the company can be
improved. By this program both company and employees are benefited.

6
CHAPTER-1
INTRODUCTION ABOUT THE
ORGANIZATION STUDY
&
INDUSTRY PROFILE

7
 CHAPTER - 1
INTRODUCTION ABOUT THE INTERNSHIP & INDUSTRY PROFILE

Introduction about the internship:

The internship titled “A STUDY OF ORGANIZATION WITH REFERENCE TO HARISH

EXPORTS” Bagepalli near tool plaza, Bangalore is a report for partial fulfilment for the award of
MBA degree under VISVESVARYA TECHNOLOGICAL UNIVERSITY, Belagavi.

The duration of the internship is four weeks from 26-09-2021 to 30-10-2021. The objective of the
internship is to study the organization.

The Mckinsey 7S framework, the management model was used to study the organization. This
study focused on the structure, strategies, and systems of a company to understand the influence of
the management. The study was made on less tangible viz. shared values, skills, style and staff,
which is more influenced by culture. The study focused on the alignment issues of 7S and its
contribution to organization success.

Using SWOT analysis, the technique is used to understand the organization’s strength, weakness
which relates to internal factors. It also identifies opportunities and threats which is external factors
that have greater impact on organization performance. The internal factors and external factors
determine company’s current and future performance.

The industry profile highlights on dominance role of industry and its impact on the company while
organization profile highlights on industry’s benchmark activities for organization success.

The experimental learning is about acquired knowledge and skill through internship. The learning
experience is focused on one’s learning. These experience results in positive influence on one’s
professionalism and career.

Textile Industry In India

The Indian textile industry has a significant presence in the international textile economy. The
Indian textile industry is currently One Of the largest and most important sectors in the economy in
terms of output foreign exchange earnings, production and employment generation in India.

The Indian Textile industry adds 14% to the industrial production arid to the GDP of India. It
provides employment to 38 million people and thus, is the second largest employment provider after
agriculture. The Indian Apparel & Textile Industry is one of the largest sources offoreign exchange

8
 flow into the country with the apparel exports accounting for almost 21 % of the total exports of the
country.

The textile industry has the potential to scale new height in the globalised economy. The textile
industry in India has gone through significant changes in anticipation of increased international
competition, In human history, past and present can never ignore the importance of textile in a
civilization decisively affecting its destinies, effectively changing its social scenario.

Textile Industry in India is the second largest employment generator after agriculture. It
holds significant status in India as it provides One of the most fundamental necessities of the people.
Textile industry in India has vast potential for creation of employment opportunities in the
agricultural, industrial, organised and decentralised sectors & rural and urban areas, particularly for
women and the disadvantaged. Indian textile industry is constituted of the following segments:
Readymade Garments, Cotton Textiles including Handlooms, Man-made Textiles, Silk Textiles,
Woollen Textiles, Handicrafts, Coir, and Jute.

Scenario in Karnataka

The Textile industry encompassing cotton, silk and wool occupies an important Position in the State
by Way of its contribution to industrial production, employment generation and export earnings. It
is only next to the agriculture sector in terms of employment generation. The State's share of
garment production is 20% and that of exports is about 8% of the national figures. It is estimated
that the current garment exports Of the State is valued at Rs. 4000 crores accounting for 15% of the
State's total exports. In Karnataka. the Textile Industry occupies a unique position in the economy of
the State in terms of its contribution to industrial production, employment and exports. The textile
sector contributes 0.50% of the GDP of the state.

9
Big players: Exports in Bangalore

1.Mother Garments Pvt Ltd

In 1995 three young Textile Chemistry graduates along with a Mechanical Engineer started a small
garment processing unit in a makeshift shed with a capacity of 1000 garments per day. They worked
hard with missionary zeal and nurtured the fledgling unit into a reliable supplier. Today the
Company has multiple strategically located operating units in Bangalore and Chennai and is well
known in the industry as a committed service provider for all types of garment processing needs

2.Pradhan Mercantile Pvt Ltd

Pradhan Mercantile Pvt. Ltd. (PMPL) is a leading Indian manufacturer of quality readymade
apparel. The company has been operational for over 2 decades with a workforce of over 2000
skilled employees. The 4 factories located in Bangalore, India houses 1,000 machines with an
installed capacity of 4 million pieces per annum, of which approx. 2.5 million pieces per annum are
dedicated to wovens and 1.5 million to knits. Our product range includes woven and knitted
garments for babies and children and woven shirts for men. Among the vast range of products, our
speciality is woven blouses, tops, dresses, skirts, shirts, nightwear, overalls, knitted tops, tee-shirts
and leggings. Since we work with both knitted and woven fabrics, we are amongst the few suppliers
who can produce mixed sets and stories.

10
3.Mahi Clothing Company

There are the leading manufacturer of Indian Ethnic Wear in India. The Company registered
tremendous growth in the textile industry having facilities for Yarn processing, design development
to fabrics Manufacturing. In 2006 Company started Garment manufacturing Men’s Shirts, Women’s
Shirts, Tops, Kurtis and Kids wear. From the last two years has been venturing in Apparel
Manufacture Textiles, like Yarn dyeing, weaving, fabric processing. We are gradually moving
towards increasing garment manufacturing mainly in Men’s and Ladies Formal and Casual wears
and Kid swear – Woven and co-ordinates

11
CHAPTER-2
ORGANIZATION PROFILE

12
 CHAPTER – 2

ORGANIZATION PROFILE

HARISH EXPORTS

Company Name: HARISH EXPORTS

Address : Near Bagepalli toll plaza,

Narepalli village, Kasaba hobli,

bagepalli (tq), Bangalore-561207.

13
Interior:

A textile or cloth is a flexible material consisting of a network of natural or artificial fibres often
referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other

14
material to produce long strands, Textiles are formed by weaving. knitting, crocheting, knotting. or
pressing fibres together (felt).

Prior to the manufacturing processes being mechanized, textiles were produced in the home, and
excess sold for extra money. Most cloth was made from wool. cotton, or flax, depending on the era
and location

The textile, textile product, and apparel manufacturing industries include establishments that
process fibre into fabric and fabric into clothing and other textile products. While most apparel
manufacturers worldwide rely on people to cut and sew pieces of fabric together. There are three
individual industries covered—textile mills, textile product mills, and apparel manufacturing.

Textile mills provide the raw material to make apparel and textile products. They take natural and
synthetic materials, such as cotton and polyester, and transform them into fibre, yarn, and thread.
Yarns are strands of fibres in a form ready for weaving, knitting, or otherwise intertwining to form a
textile fabric. They form the basis for most textile production and commonly are made of cotton,
wool, or a synthetic fibre such as polyester. Yarns also can be made of thin strips of plastic, paper,
or metal. To produce spun yarn, natural fibres such as cotton and wool must first be processed to
remove impurities and give products the desired texture and durability, as well as other
characteristics. After this initial cleaning stage, the fibres are spun into yarn.

Textile mills then go on to produce fabric by means of weaving and knitting. Workers in weaving
mills use complex, automated looms to transform yams into cloth. Looms weave or interlace two
yarns, so they cross each other at right angles to form fabric. Knitting mills use automated machines
to produce fabric of interlocking loops of one or more yarns.

At any time during the production process, a number of processes, called finishing, may be
performed on the fabric. These processes—which include dyeing, bleaching, and stonewashing,
among others—may be performed by the textile mill or at a separate finishing fabric to improve
appearance. texture. or performance.

Textile product mills convert raw textiles into finished products Other than apparel. Some of the
items made in this sector include household items. such as carpets and rugs, towels. curtains and
sheets. cord amt twine. furniture and automotive upholstery. and industrial belts and fire hoses,
Because the process of converting raw fibres into finished textile products is complex, most textile
mills specialize.

15
The apparel manufacturing industry transforms fabrics produced by textile manufacturers into
clothing and accessories. The apparel industry traditionally has consisted mostly of production
workers who performed the cutting and sewing functions in an assembly line. This industry remains
labour intensive, despite advances in technology and workplace practices. Although many workers
still perform this work in the United States, the industry increasingly contracts out its production
work to foreign suppliers to take advantage of lower labour costs in other countries.

Many of the remaining production workers work in teams. For example, sewing machine operators
are organized into production "modules." Each operator in a module is trained to perform nearly all
of the functions required to assemble a garment. Each module is responsible for its own
performance, and individuals usually receive compensation based on the team's performance.

Recent Developments

The textile and apparel manufacturing industries are among the most labour-intensive
manufacturing industries, and therefore an increasing amount of textile products is produced by
foreign suppliers. Nonetheless, some textile manufacturing still takes place in the United States. To
remain competitive, however. domestic manufacturers rely on being extremely labour-efficient.
Advanced machinery is boosting productivity levels in textiles and fundamentally changing the
nature of work for employees. New technology also has led to increasingly technical training for
workers throughout the industry. Computers and computer-controlled equipment aid in many
functions. such as design, patternmaking. and cutting. Other emerging technologies which improve
plant efficiency include wider looms, computerized equipment, and increased use of robotics to
move material within the plant.

The domestic apparel industry also benefits from laws requiring that clothing worn by the Armed
Services be produced in the United States—a law that was recently extended to cover uniforms
worn by Transportation Security Administration officers. Although demand for these uniforms is
greatly outweighed by a much larger consumer goods market, it nonetheless will continue to employ
some textile workers in more labour-intensive segments, such as cut and-sew apparel
manufacturing.

16
 Other domestically produced items tend to be custom or high-end items. One advantage the
domestic industry has is its closeness to the market and its ability to react to changes in fashion
more quickly than its foreign competitors. Also, as retailers consolidate and become more cost
conscious. they require more apparel manufacturers to move toward just-in-time delivery systems,
in which purchased apparel items are quickly replaced by new items directly from the manufacturer,
rather than from a large inventory kept by the retailer. Through electronic data interchange—mainly
using barcodes —in formations quickly communicated to the manufacturers, providing information
not only on inventory, but also about the desires of the public for particular fashions.

Some apparel firms have responded to growing competition by merging with other apparel firms
and by moving into the retail market. In addition to the production of garments they also are
contracting out functions—for example, warehousing and order fulfilment—to concentrate on their
strengths: design and marketing. Computer-aided design systems have led to the development of
"product life cycle management," under which potential new fashions can now be transmitted
around the planet over the Internet. Such changes may help the apparel manufacturing industry meet
the growing competition and continue to supply the Nation's consumers with garments at an

acceptable cost.

Background

HE Garments made an entry in to the garment export scene on ambitious note and has been
continuously & consistently upgrading and improving its quality factor and it has been learnt and
researched by our team of staff and suppliers to ensure consistency and also match global standards.

This organization is vibrant and also dynamic, where state-of-the art technology standard is used in
business practice and communications along with a highly skilled and enthusiastic workforce that
strives for nothing short of excellence in production, quality and service.

We engage our strong marketing mix of high-quality products at competitive price strategy,
adequate distribution channel and ample promotion through word of mouth to reach a long running
litany of satisfied customers.

Their plant and machinery is located in Bangalore, and an exclusive and independent
embroidery unit has also been established. They are equipped with the latest machinery and skilled
workforce to meet the quality demand of the high-profile global brands, after packing the garments,
17
 they have 100% checked through Hashima needle detector machine imported from Japan to ensure,
there is no needle particles left in them, no garments will be packed unless it is thoroughly checked
by the needle detector, and also maintaining the needle policy register as per the global standard.

Their fabric designs are created and developed using in house Skills and talent. A blend of
colour, composition, texture and view is created to appeal the aesthetic sense of the

They have buyers like C&A, Europe & Mexico (Disney & Barbie), Vetir — France, Charles
Vogel’s — Switzerland, K & L — Germany had sourced garments from them.

Their emphasis on design, quality and timely delivery has contributed in a big way to their
growth. They pay attention to minute details and have also evolved an efficient and Organized
production process. The growths in turnover since inception as well as the increasing number of top
labels being service are a testimony to the leadership at HE Garments.

production process extremely efficient well organised. At HE Garments, they have

the capacity to develop fabric designs and finish goods to the satisfaction of the overseas buyer.

They have a very good tie up with washing laundry they have capacity to do washing per
day. Oley can do enzyme wash. stonewash, bleach wash softener and different kind of blast of the
garments.

Their production capacity is 90,000 pieces per month and lead time is 75 to 90 days after confirm
the orders.

Nature of Business

HE Garments made an entry in to the Garment Export scene on ambitious note and has been
continuously and consistently upgrading and improving its quality factor. It has grown several times
over its capability, stature and turnover. Their plant and machinery located in Bangalore and an
exclusive and independent embroidery unit has also been established.

HE Garments start their business by purchasing raw material, i.e., fabrics and button from
Salem, Ahmedabad, Calcutta and Delhi and even from abroad. The quantity of raw material is fixed
upon the orders come from the clients. The production from stitching to packing is done in the
company's own factory at HBR Layout, Bangalore. There are more than 500 employees in the

18
 factory for stitching, ironing, quality checking and packing & labelling. 80% of the employees are
women.

The company's most of the clients are from European countries such as Mexico, German,
Switzerland, etc. Walt Disney and Europe are the important clients of HE Garments. The company
contact these clients through the buying agents located at Bangalore. The company directly deliver
the goods to the clients by ships.

Vision, Mission & Quality policy:

Vision
To be a leader in the Indian retail industry by increasing customer base and by offering
valuable service through prompt delivery of quality products.
Mission

To earn customer loyalty by investing in people and system and there by providing them
with competitively priced eco-friendly garments of premier quality which are delivered on time
consistently.
Quality Policy

Quality Management System at HE Garments ensures that all the activities necessary to
design, develop and implement a product or service are effective and efficient with respect to the
system and its performance.

Quality Policy of HE Garments has the procedure of the following

19
 Colour Matching

Lab Dip Approval

Lot Approval
 Accessory Approval
 Size Set Approval
 Bulk Fabric Approval
 Pilot Run Approval
 Conformity Sample
 On-Line Inspection
 Final Inspection
 Inspection Certificate
 Lab Test Standards
 Customers Standards

Product/service profile

Harish Exports Garments is one of the largest manufacturer/exporters in India offering ready to
wear garments for ladies, men and children. Its working is as vast as the organisation. It covers
men's shirt — formal and children wear etc.

The Product range covers…. The fabric Range from….

Button polo shirt Solid, yarn dyed single jersey
T- shirt Pique
Tailored collar Polo shirt Inter lock
Turtle neck Rib
Mock neck Flat black rib
Jackets Textured knits
Tanks Heavy jersey in cotton
Lingerie Polyester cotton
Lounge wear polyester viscose
Sleep wear etc ... circular woolen knits ect .

20
Product range fabric for kids:

Product range fabric for Girls and Women 's:

• Embroidered tops
• Beadwork

• Pin tuck, smoking

• Printed fabric

• Sheer jersey

• Glowing night print

• Fine knit-viscose and viscose blends etc.

Product range fabric for men:

21
• Bio polished polo’s peached jersey, suede jersey.

• Flat back rib-cotton/wool. polyesters cotton,

• 100% cotton fleece, 80/20 cotton/poly fleece, micro polar.

• Fleece. spun/ply fleece, heather fleece.

• Moisture wicking fabric-chemicals and yarn.

• Water repelled-stain guard, Teflon coated.

• Single mercerized polo-solids, jacquard wrappers.

• Velour, ottoman pouched.

• Sub fleece, cotton/model and different modal blends.

 Organic cotton jersey and pique etc.

Owner ship Pattern

Harish Exports Garments is a private Ltd company which is founded by VENKATASIVA

REDDY. The company is registered under the Companies Minimum Wages Act 1948 and Minimum

Wages Rules 1958. The register number of the company is MYB 15088. and the company is

controlled by the board of directors. In the annual meet, based on EPS the directors will get their

profit.

Competitors Information

HE Garments is facing stiff competition from other players of garment industry across the country.
Even though the competitors are able to use advanced technology in their production process, HE
Garments attracts customers all over the world and able to acquire market share. It is facing stiff
competition from well established companies like

1. Gokul das Exports

2. Craft Orient
3. Arvind Mills S. K Mohan
4. Bombay Rayon
22
5. Ri cha Global
6.Madura Garments
7. Shahi Exports

. Infrastructural Facilities

HE Garments gives good infrastructure facility which helps employees to carry their work
smoothly without any interruption. Infrastructure facility of HE Garments consists of the following:

Production plant and Machinery

Security facility
Canteen facility
Transportation service

Production Plant and Machinery:

Company is having good sophisticated and new technology of plant and machinery which helps
employees to adopt new technology in their work which in turn helps to maintain good quality of
products. The machines used by HE Garments are as follows:
Juki single needle -340 Nos

Juki double needle 50Nos

Juki overlock - 50Nos

Juki fusing machine -2Nos

Juki button hole machine - 6Nos

Juki button stitch machine - 6Nos

Juki bar tuck -6Nos

Ironing table -20Nos

Hashima needle d elector machine -l Nos

Security Facility:

Having a good security facility at the entrance where for every employee while entering time
recorded and leaving time of each employee is recorded. Separate time maintained for material arrival
and departure. All visitors and employees have to have proof of Identity.

Canteen Facility:

23
 HE Garments has a very good canteen facility. All kinds of south Indian as well as north Indian
foods are available at this canteen. The canteen provides tea and snacks in the morning and evening to
for free of cost.

Transportation Service:

Transportation system is the nerve system of the company. Transportation is mainly used for
carriage of raw material and finished goods. It will also provide facilities in other to bring guest.

24
Work Flow Model (End to End)

Receive
orders

stock Sub store

suppliers

fabric

Cutting section

weaving

Button fixing

trimming

checking

Stain
spotting

Final
checking

ironing

Final
presentation

Packing &
labelling

25
FUTURE GROWTH AND PROSPECTS

# To achieve tangible benefits by promoting efficiencies, productivity and professionalism.

# Provide competitive prices and genuine product to our clients.

# Creating a climate for voluntary compliance by providing guidance and building mutual trust.

# To promote international textile trade.

# One that impresses its customers the first time.

# To attain level of business efficiency with integrity and honesty.

# To be a world class organization one that becomes a benchmark for other organisations its source for
new ideas, information, professional development and quality standards.

26
CHAPTER -
3
MCKINSEY’S 7S FRAMEWORK

&

PORTERS FIVE FORCE MODEL

27
 McKinsey 7-S Frame Work

The respected consulting firm of McKinsey and company developed the framework
for management analysis. The outstanding feature of the 7-s model is that McKinsey
consultants in their studies of many companies have tested it extensively. At the same time,
respected business schools, such as Harvard and Stanford, have used this framework. The
seven S’s are strategy, structure, system, style. staff, shared values, and skill.

1. STRATEGY
Strategy is the systematic action and allocation of resources to achieve company aims,
in other words it is the direction and scope of the company over the long term,

STRATEGY USED BY THE COMPANY

• Providing better quality product

• Maintaining good and long-term relationship with buying agents

28
 • Delivery of goods on time
• Providing better amenities to employees
• Maintaining good relation with employees and considering them as internal
customers

STRUCTURE:

structure is the basic organization of the company, its departments, and reporting lines,
areas of expertise and responsibility (and how they inter-relate)

DEPARTMENTS
Department is a process of dividing the large monolithic functional organization into small and
flexible administrative units.

HE Garments has a functional departmentalisation. The departments are:

I. Personnel Department
2. Production Department

3. Marketing Department

4. Financial Department personnel Department

HE Garments is having a well-governed human resource department, which is concerned with

the creation of harmonious relationship among its employees, bringing about their utmost individual
development. The HRD has a control over the employees of all other functional departments. They
take the responsibility of maintaining various reports and documents. Few documents maintained by
Human Resource Manager are as follows:

29
  Design and procurement
 Process control
 Inspection and test status of dies
 Document and data control

Production Department

The production department involves. The technical staff basically machines handling and
technically skilled staff.

The supervisory staffs are having good relations among the subordinates. The supervisors have
enough skill and knowledge about their work and production process and they control the employees to
work efficiently, and also the various training programs are conducted to develop their supervisory
skill.

• Production planning

• Material planning

• Process control

• productive and cost control

Marketing Department

The marketing department is headed by Managing Director. Mr. Ayyappan itself. The main task
of marketing department is to deal with various buying agents.

Finance Department

The Finance Officer is the head of the Accounts Department. He is assisted by the chief
Accountant and Accounts Officers. All the cash transaction is controlled by finance department.
All financial decisions are taken by the Accounts Department. The company is banked with
State Bank of India.

SYSTEM:

30
 The Company has an adequate internal control system commensurate with its size and nature of
business. The Audit Committee reviews the report of internal auditors and quality results published as per
listing agreement. The Board believes that appropriate and monitoring mechanism are in place.

STYLE

In HE Garments, top-down communication of information is maintained. The top-level

management has the sole authority in the organization, which enjoys all powers. They give
instructions to the Department heads who in tum give instructions to the lower level employees.
Middle level consists of Department heads and supervisors responsible for taking decisions
regarding to their department and teams. Lower level consists of fabric cutters, weavers, ironing
employees, packing employees, etc.

STAFF

It deals with the company's people resources and how they are developed, trained and motivated.
The most important resource of an organization is its human resource — the people who Supply the
organization with their work, talent, creativity and drive.

HE garments consist of 600 employees most of them are tailors. HE garments has maintained a
good relationship among employees by directing on providing all guidance and inspiration to work to carry
out their assigned duties and responsibilities . In this way the company achieves its objectives by placing
then right person from the right jobs.

SKILL

The company staff have different kinds of skills. Highly qualified professionals in the company
have skills like on fabric cutting. Most of the employees are semi skilled and unskilled who are working in
ironing, packing, etc. The company’s all the fabric cutting employees are well experienced and are given
training program to scope up with new technologies on techniques.

SHARED VALUES

Treating employees as the very purpose of the company The mutual understanding on trust
between the top level managers and employees The employees are given full freedom to come out with
their ideas

31
 PORTERS FIVE FORCE MODEL

Michael E Porter of Harvard Business School Created Porter's Five Forces of Competitive
Position Analysis in 1979 as a basic framework for assessing and evaluating a business
organization's competitive strength and position.

Porter's Five Forces is a model that identifies and analyses the five competitive forces that
shape any sector and aids in determining the industry's weaknesses and strengths. Five
Forces analysis is widely used to define corporate strategy by identifying an industry's
structure. Porter's approach can be applied to any sector of the economy to better analyse
industry competitiveness and increase a company's long-term profitability.

Porters five forces analysis is a strategy management tool for analysing industries and
understanding the underlying profitability levers in a certain business. The Porters Five
Factors model can be used by harish exports to understand how the five competitive forces
influence profitability and to design a strategy for increasing the company's competitive edge
and long-term profitability.

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 What are Porters five forces?

Michael Porter discovered five forces that have a substantial impact on a firm's profitability
in its industry in his ground-breaking study "five forces that shape strategy." In today's
business world, this five forces analysis is also known as a Porter Five Force analysis.

According to Porter, there are five forces that reflect the primary sources of competitive
pressure inside a sector. They are

 Buyer Power
 Supplier Power
 Competitive Rivalry
 Threat of New Entries
 Threat of Substitution

Five Forces Analysis of the Harish Exports Industry Porter’s Five Forces analysis is an approach to
determining just how competitive a given market is, and consequently, how profitable it may be for a
business. This framework draws on five factors, known as the ‘five forces’, to achieve this. These five
forces are:

Buyer power — the ability of buyers to decrease the prices they pay

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 Supplier power — the ability of suppliers to increase the cost of their product or service

Competitive rivalry — the intensity of competitive activity which might affect how much
business a company receives, or how high sustainable margins are

The threat of new entries/entrants — the threat posed by new entrants in a market

The threat of substitution — the threat posed by the possibility of substituting a product or
service in one market with something else

The fashion retail Industry has a market value of several hundred billion of dollars, with the
average price per product coming in at a healthy $19. This article will attempt to analyse the viability of
the fashion retail industry as a whole, by means of a Five Forces analysis.

Buyer Power

The first important force is the bargaining ability of buyers, who can choose to push down prices,
not buy products, or switch retailers. In the case of the fashion industry, buyer power is a relatively large
force. While clothes shoppers are typically individuals with little to none direct bargaining power (as
compared to huge companies, buying in bulk, who might be the main clients in other industries), they have
many alternative locations to shop for apparel and little incentive to stay with one particular company,
giving them plenty of indirect bargaining power.

Supplier Power

In the fashion retail industry, supplier power is a relatively small and insignificant force. Most
apparel companies source their products from third world manufacturers who receive just fractions of the
profit. Suppliers have little control over the fashion industry as, unfortunately, they are dispensable and
can always be swapped out. As a result, input prices for this industry are relatively low and will stay there
until the global development gap closes up significantly.

Competitive Rivalry The fashion industry is an interesting one when it comes to analyzing
through the intensity of competitive rivalry. There are large numbers of retailers who sell very similar
products, but there’s also the concept of brands, which allow some companies to sell apparel for ridiculous

34
rates. Nowadays there is little innovation in this space, so the market is quickly becoming saturated with
very similar products.

In this sense, the fashion industry is a very difficult one to get into, and is almost becoming a ‘race
to the bottom’ — not good news for retailers.

Threat of New Entries

As mentioned previously, there is little that is unique to bring to the table in this industry, so this
force is also somewhat small. However, new entries might find unique ways to popularize their own
products (which might not even be particularly special), and as such build novel brands — perhaps through
clever use of social media. The fashion Industry in its current state is ‘high risk, high reward’ for new
entrants — it’s not too difficult to get a foot in the door and copy others, but will the markets care for those
products?

Threat of Substitution

Fortunately for those in the fashion retail industry, there is little to substitute clothes with. This
force is almost negligible — all ‘substitution’ in the fashion industry is really just competition. To sum up,
the fashion industry seems difficult to successfully dive into, and bleak for companies already within this
space. This Five Forces analysis has shown that while there are few threats and little supplier bargaining
power, it is not good that the market is effectively nearing saturation. Buyers have large amounts of
indirect power to bargain with — i.e. plenty of choices — and lots of competitors make it hard to sustain a
place in the market.

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CHAPTER-4
36
SWOT ANALYSIS

SWOT ANALYSIS

37
 The SWOT analysis is a tool used in strategic planning to evaluate the Strengths.
weaknesses, Opportunities and Threats involved in a new project. ne SWOT analysis enables you to
have a better understanding of what you should be aware of before starting a new project. it
evaluates the good and the bad and clearly shows if the new project is viable or not.

STRENGTH

• Abundant Raw Material availability that helps firm to control costs and reduces the lead-
time across the operation

• The firm has manufacturing flexibility that helps to increase the productivity

• Industry has large and diversified segments that provide wide variety of products

• Low labour cost

• Permanent buying agencies

WEAKNESS

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 • Higher indirect taxes, power and interest rate•

• Highly concentrated on export

• Technological obsolescence

OPPORTUNITY

• product development and Diversification to cater global needs

Greaters Investment and FDI opportunities are available

• Market is gradually shifting towards Branded Readymade Garment

THREATS

• To balance the demand and supply.

• To make balance between price and quality.

39
CHAPTER-5
ANALYSIS OF FINANCIAL
STATEMENTS

40
 BALANCE SHEET FOR THE YEAR 2018-19 & 2019-20

LIABILITIES AS AT 31ST AS AT 31ST ASSETS AS AT 31ST AS AT 31ST

S.NO. MARCH 2020 MARCH 2019 S.NO. MARCH 2020 MARCH 2019

Non-Current
Share Capital 1 10,00,000 10,00,000 Assets
Property,
Plant&
equipment
Reserve and surplus 2 89,007,005 53,524,252 tangible assets 8 14,764,817 16,263,740
Intangible
assets 9 1,239,306 861,406
Deferred
Non-Current liabilities Assets 10 3,482,386 2,282,808
Long term
longs &
Other current liabilities 3 3,538,720 3,645,551 advance 11 49,027,107 57,092,052
other non-
long term provision 4 9,341,815 7,850,766 Current Assets 12 165,711 156,056

Current liabilities Current Assets

Total outstanding dues
of creditors other than
micro enterprises and cash & bank
small enterprises 5 1,508,284 1,020,383 balance 13 32,367,513 23,407,623
short term
loans &
Other current liabilities 6 18,160,679 29,248,170 advance 14 12,933,748 429,536
Trade
Short term provision 7 4,536,441 4,204,099 receivable 15 15,111,756 -

Total 129,092,944 100,493,221 Total 129,092,944 100,493,221

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Interpretation of the financial data:

 When compared last year, the company’s cash equivalents have increased significantly. Because
preserving cash equivalents is required to support the company’s day-to-day operations.
 There is significant change in the fixed assets and equipment of the company its increased by
2,02,62,052, which is 26%
 When compared to previous year, the company’s over all liquidity position is strong with a small
decrease in current liability.

RATIO ANALYSIS:

Ratio analysis is a quantitative tool for gaining insight into a company's liquidity,
operational efficiency, and profitability by examining financial statements such as the
balance sheet and income statement. Ratio analysis is a key component of fundamental
equity analysis.
Ratio analysis is used by investors and analysts to assess a company's financial health by
examining past and current financial statements. Comparative data can be used to show
how a company performs over time and to forecast anticipated future performance. This
information can also be used to compare a company's financial position to industry
averages and to see how it compares to others in the same industry.
Ratio analysis is a type of financial statement analysis that is used to provide a rapid
picture of a company's financial performance in a number of categories. Short-term
solvency ratios, Debt management ratios, Asset management ratios, Profitability ratios,
and Market value ratios are the different types of ratios.

42
Financial ratios are an excellent technique to rapidly analyse a company's health before
delving into its financial records. Price-earnings ratios can help investors understand pricing,
while debt-coverage ratios can alert them to potential liquidity concerns. The act of
determining and presenting the relationship of items and groupings of things in financial
statements is known as ratios analysis of financial statements.

The three key ratios that we should calculate to get a fast picture of the company's financial
situation are as follows.

1. Current ratio
2. Acid test ratio / Quick ratio / Liquidity ratio
3. Proprietary ratio

1. Current ratio:

The current ratio is a liquidity ratio that assesses a company's capacity to pay short-term or
one-year obligations. It explains to investors and analysts how a firm might maximise its

43
 current assets on its balance sheet in order to pay down its current debt and other payables. A
standard ratio for current ratio is 2:1.

The formula for calculating a company’s current ratio is:

Current assets
Current ratio = Current liabilities

CURRENT RATIO
Y CURREN CUR
E T RENT
A CURREN LIABILIT RATI
R T ASSETS IES O

20
19 1,67,81,187 2,32,28,592 0.72
20
20 2,31,49,304 1,88,71,949 1.23

Interpretation:

The standard current ratio is 2:1. This means that current assets have twice the capacity to meet their current
liabilities. It is seen from the above table that during the year 2018, the current ratio was 0.69:1 and in the
year 2019 it was 7.30:1. The current ratio increased from 0.69 to 7.30. That means, compared to last year,
the current ratio has slightly increased. So, the company's liquid ratio is in a good position, so they can pay
their liquid requirements.

2. Quick ratio:

The quick ratio is a measure of a company's capacity to satisfy its short-term obligations
using its most liquid assets and is an indicative of its short-term liquidity position. It is also
known as the acid test ratio because it reveals the company's capacity to immediately employ
its near-cash assets (assets that can be converted swiftly to cash) to pay down its current
liabilities. An "acid test" is a slang phrase for a rapid test that produces immediate results.

The formula for calculating a company’s Quick ratio is:

QUICK RATIO

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 Q
UI
Y CK
E CURRENT RA
A QUICK LIABILITI TI
R ASSETS ES O

       

20 2 0.6
19 3837159 34472652 9
20 7.3
20 1,76,813017 24205404 0

       

Quick assets
Quick ratio = Quick liabilities

Interpretation:

The ideal figure for the quick ratio is 1:1. It means that the liquid assets are just the same as
quick or current liabilities. It is seen from the above table chart that during the year 2019, the
quick ratio was 0.69:1 and in the year 2020 it was 7.30:1. The current ratio has increased
from 2019 to 2020, or 0.69 to 7.30. Hence, it can be said that the company does not have
quick assets compared to current liabilities. So, the quick asset position of the industry is
adequate.

3. Proprietary ratio:

The proprietary ratio (also known as the equity ratio) is the ratio of shareholders' equity to
total assets, and it provides a general assessment of the amount of capitalization currently
employed to fund a corporation. If the ratio is high, it means that a company has enough
equity to fund its operations and likely has flexibility in its financial structure to take on
extra debt if necessary. A low ratio, on the other hand, implies that a corporation is using too
much debt or trade payables to sustain operations rather than equity (which may place the
company at risk of bankruptcy).

The formula for calculating a company’s Quick ratio is:

Shareholder funds
Proprietary ratio =
Total assets

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Proprietor’s funds = Share capital + Reserves and surplus

PROPRIETARY RATIO
Y TOT
E SHAREHO AL PROPRIE
A LDERS ASS TARY
R FUNDS ETS RATIO

246 8
20 23479 2826
19 933 0.29
1004
20 9322
20 54524252 1 0.54
       

Interpretation:

There is no ideal ratio for the proprietary ratio. The company had gone for financial leverage
for the last 2 years. The company was showing an increase in trend in the capital. The
company was showing an increase in trend from 0.29 to 0.54, which means the higher the
proprietary ratio, which indicates a strong financial position of the company and greater
security for the creditors of the company.

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CHAPTER - 6
LEARNING EXPERIENCE

47
 CHAPTER – 6

LEARNING EXPERIENCE

My internship at HARISH EXPORTS was a good opportunity for me to gain a better

understanding of the professional workplace and the responsibilities that come with it.
During my internship, I was introduced to a variety of work-related activities and was given
duties with the freedom to work on my own after receiving initial direction.

Throughout my internship, I had the opportunity to see first - hand what it takes to manage a
firm with a high level of professionalism. Working in an office atmosphere provides an
opportunity to learn about office manners from those with more job experience. During my
internship, the employees were incredibly supportive and friendly. They were extremely
knowledgeable about their profession and were eager to share their knowledge with me.

During my internship, I was able to gain a wide range of skills. The most essential thing I
learnt was that if you are ready to engage with (customer clients) and listen to what they
truly need, you can build relationships that benefit both parties. I studied skills such as
business communication, event planning, marketing, and customer service.

Some of my first – hand experience of working at harish exports .

 As my external advisor was a finance executive, I spent the most of my time in the finance
department. They gave me all of the foundations of finance. This helped me to comprehend many
parts of billing systems, receipts and payments, preparing quotations, preparing purchase orders, and
so on.

 I got an opportunity to prepare quotations for various projects.

 I got an opportunity to prepare purchase orders and deal with many clients through telephone
communication and e-mail.

This internship taught me to be punctual, to treat everyone with respect, to handle with
pressure, to manage tasks on my own, and to manage things to the best of my ability.

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An internship programme, in my perspective, is an excellent way for graduating students to
transition into the job with a sense of professionalism, motivation, and a desire to succeed in
the future.

BIBLIOGRAPHY

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