Faculty, P.G. Dept of Commerce, Karnatak University, Dharwad, Karnataka, India
Online published on 7 September, 2015.
Cotton is an important Commercial Crop grown in India on a large scale. The Cotton Production in India has crossed 21.80 million bales at the end of March 2007. India stood third, next to China and USA, in the production of cotton among the top five-cotton producing countries of the world. The Cotton Production in Karnataka State stood at 440 thousand bales during 2006–07. But the Cotton Production in Karnataka State is very low compared to the cotton growing states like Gujarat, Maharastra, Punjab and Andhra Pradesh. The Cotton Textile Industries in India in general and Karnataka State in particular, have been contributing a lot to the growth and development of the economy by providing market for the cotton growers and employment opportunities to many unemployed youths. The Gadag Cooperative Cotton Textile Mill Ltd, Hulkoti, has been in existence for the last 35 years and it is located in a village called Hulkoti of Gadag District of Karnataka State. The Gadag Cooperative Cotton Textile Mill Ltd, Hulkoti, performed very well in the first few years. However, the financial statements of the last few years of the firm show negative results like Gross Loss and Net Loss and imbalance in the assets and liabilities structure. The present Study is purely based on secondary data, i.e Annual Reports of The Gadag Cooperative Cotton Textile Mill Ltd, Hulkoti. The data were extracted from financial statements like manufacturing accounts, trading accounts, profit and loss accounts and balance sheets of the firm from 2002–03 to 2007–08. The collected data were analyzed by using the Ratio Analysis. Further, statistical tools like Percentage, Trends and Tabulation, Mean, Standard Deviation, Coefficient of Variation and Growth Rate were also used for the purpose of the Study. The Study suggested both Internal and External Reconstruction of the firm.
