Garments Manufacturing & Selling Company

This project covered financial reporting, taxation, and financial analysis for a garments manufacturing and selling business operating in the local market. The focus was on accurately capturing production costs, managing inventory across seasons, and providing financial clarity to support pricing and operational decisions.

• Assets:
  • Current Assets: Cash and bank balances, trade receivables from local retailers, raw materials inventory (fabric, accessories), work-in-progress, and finished goods inventory.
  • Non-Current Assets: Sewing machines, production equipment, factory fixtures, and office assets.
• Liabilities:
  • Current Liabilities: Trade payables to suppliers, accrued wages, utilities, short-term borrowings, and tax liabilities.
  • Non-Current Liabilities: Long-term loans and equipment financing.
• Equity:
  • Owner’s capital, retained earnings, and reserves.

Purpose:
Provided a clear view of the company’s financial position, particularly inventory levels, working capital, and funding structure.

• Revenue:
  • Sales of garments through local retailers and direct market channels.
• Cost of Goods Sold:
  • Fabric and accessories, production labor, factory overheads, and manufacturing-related expenses.
• Operating Expenses:
  • Selling and distribution costs, administrative salaries, utilities, marketing, and depreciation.
• Net Profit:
  • Profit before and after tax for the reporting period.

Purpose:
Evaluated product profitability and highlighted the impact of production costs and pricing on overall margins.

• Operating Activities:
  • Cash received from garment sales.
  • Payments for raw materials, wages, utilities, and operating expenses.
• Investing Activities:
  • Purchase or replacement of production equipment and machinery.
• Financing Activities:
  • Loan proceeds, repayments, and owner capital contributions.

Purpose:
Assessed cash flow timing, especially during high-production and peak sales seasons.

• Reflected changes in retained earnings driven by operating results.
• Recorded capital contributions and withdrawals.

Purpose:
Tracked how business performance affected owner equity over time.

• Calculation and filing of corporate or business income tax.
• Compliance with sales tax / VAT, payroll-related taxes, and other statutory obligations.
• Preparation of tax schedules aligned with financial statements.

Purpose:
Ensured accurate and timely tax compliance while maintaining consistency with reported financial results.

• Cost Analysis:
  • Reviewed material and labor costs to identify production inefficiencies.
• Product Margin Analysis:
  • Compared profitability across different garment lines and styles.
• Inventory Analysis:
  • Evaluated stock levels, slow-moving items, and seasonal inventory risks.
• Working Capital Review:
  • Assessed the balance between inventory, receivables, and payables.

• Identified cost pressures in raw materials and labor.
• Highlighted seasonal inventory accumulation impacting cash flow.
• Provided guidance on pricing adjustments to protect margins.
• Suggested improvements in inventory turnover and production planning.

• Accurate and structured financial statements for management review.
• Improved visibility into production costs and product profitability.
• Better cash flow planning aligned with seasonal demand.
• Financial insights supporting pricing, inventory, and production decisions.

• Accounting software and Excel-based cost models.
• Customized inventory and cost tracking reports.
• Periodic financial summaries for operational planning.