A Study of Cash Management of Bangles Industries As Financial Aspects

Glass Bangles are products made out of block glass of different shades of colours or directly from batch material. These are sound in shape with pleasing colours and having designs over the surface. It is a customary for ladies to design wear bangles from their childhood for ornamental decoration and also as a symbol of sanctity. Glass bangles in also a sign of marital a status for ladies in India, especially in Northern and Eastern region. The trade names of the different size of the bangles are one Anna, Two four Anna, Tow – Six Anna, Two – Eight Anna and three Anna representing different diameters. The glass bangles are sold out with the above names for indication sizes. This type of industry is only concentrated are Firozabad manufacturing glass bangles using pot furnace. This type of industry may be set up in other parts of the Country also however, skilled labour, required for bangles coil of parison making may have to be brought from Firozabad. At these products have very good demand from ladies of lower and middle class families; there is good scope for setting up new units in this line of manufacture. Accounting for about 70% of the total glass production in small-sector in India, Firozabad glass industry is India's biggest glass industry cluster with nearly 5-6 lakhs people employed directly and plenty more employed indirectly with this sector. The cluster holds a unique position of consisting of Micro, Small and Medium units located at one place and being capable of producing a variety of glass products ranging from art ware, chandeliers to multicolored bangles , generating an annual business of more than Rs 2000 crores. There is a large agglomeration of small scale units in this town, which are engaged in the manufacture of hollow wares, decorative items, glass beads, etc. Around 50% of the total produce of these units are exported to different countries. The Firozabad glass industry has been able to cater to the indigenous need as well as international demand by way of producing variety of products. It is one of a kind cluster operating in India. It is the only cluster which is producing bangles and catering to the entire requirement of bangles in India. There are approximately 150 bangle making and decoration units in the city which provide employment to nearly 50,000 families. It is estimated that a single bangle passes through as many as 45 to 50 hands before it is transformed from a mere lump of glass into the piece of disposable jewellery. Firozabad cluster specializes in making a variety of exclusive hand made products. The cluster has easy availability to trained and skilled workers. There are estimated a thousand registered skilled craftsmen presence of specialized units for each kind of value addition.

Glass Bangles of various sizes 3, 40,000 toras @ Rs.46 per tora Rs. 1, 56,40,000/-

(e) WORKING CAPITAL FOR 3 MONTHS = 10, 43,110*3=31, 29,330 (f) TOTAL CAPITAL INVESTMENT: RS.

FIXED CAPITAL 26, 73,500

WORKING CAPITAL FOR 3 MONTHS 31, 29,330

___________

Glass Bangles of various sizes 3, 40,000 toras @ Rs. 46 per tora Rs.1, 56, 40,000/-

(a) % of profit on sales

= 12.81 %

(b) % of profit on Investment

= 34.53%

(c) Break Even Point : (2) Profit per annum = Rs. 20, 03,711 Break Even point

= 70.89%

The industry involves the process of bangle coil making which require very high skilled worker and they work sometimes on hourly basis also. Hence, their wages have been kept very high as Rs. 8,000/- per month which is as per the Norms. It is presumed that in the first year the capacity utilization will be 65% increasing gradually in the subsequent years reaching to 85% in the 4th year and expected to be maintained at this in the following years. Interest rate on fixed and working capital has been taken as 18% on an average. The diameter of the bangle spiral mainly depends upon the diameter of the spindle used in the formation of spirals and the thickness list controlled by exerting the requisite amount of full on the softened glass parison required highly specialized skill in the bangle why, these workers are highest paid staff in the bangle factory. The diameter of the bangle spiral mainly depends upon the diameter of the spindle used in the formation of the spirals and the thickness is controlled by exerting the requisite amount of full on the softened glass prisons by spiral are maker (tarwalla) having highly skilled job. Spiral are then taken out from the spindle and cut with the help of a pencil cutter to separate out the single pieces of bangles from spiral. These cut or unjoined bangles are then sent for joining of end, finishing cutting & polishing, decoration etc. The finished products are then neatly packed or made into toras for sale.

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