A Project Report On Analysis and Interpretation of 10 Years Financial Statements

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.
Contents
Titles Chapter 1 Executive summary Chapter 2 Industrial profile Company profile Organization structure Chapter 3 Design of the study Statement of problem Objectives of the study Scope of the study Methodology of data collection Sources of data collection Limitations Organization study Chapter 4 Financial analysis Introduction to study Comparative statements Common size statements Chapter 5 Data analysis And interpretation Comparative income statement Comparative balance sheet Common size balance sheet Common size income statement Chapter 6 FINDING SUGGESTIONS Chapter 7 CONCLUSIONS Chapter 8 Bibilography
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Chapter 9 Annexure
Sl.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
Name of the Statement Comparative income statement 98-99, 99-00 Comparative income statement 99-00, 00-01 Comparative income statement 00-01, 01-02 Comparative income statement 01-02, 02-03 Comparative income statement 02-03, 03-04 Comparative income statement 03-04, 04-05 Comparative income statement 04-05, 05-06 Comparative income statement 05-06, 06-07 Comparative income statement 06-07, 07-08 Comparative balance sheet 98-99, 99-00 Comparative balance sheet 99-00, 00-01 Comparative balance sheet 00-01, 01-02 Comparative balance sheet 01-02, 02-03 Comparative balance sheet 02-03, 03-04 Comparative balance sheet 03-04, 04-05 Comparative balance sheet 04-05, 05-06 Comparative balance sheet 05-06, 06-07 Comparative balance sheet 06-07, 07-08 Common size balance sheet 98-99, 99-00 Common size balance sheet 99-00, 00-01 Common size balance sheet 00-01, 01-02 Common size balance sheet 01-02, 02-03 Common size balance sheet 02-03, 03-04 Common size balance sheet 03-04, 04-05 Common size balance sheet 04-05, 05-06 Common size balance sheet 05-06, 06-07 Common size balance sheet 06-07, 07-08 Common size balance sheet 06-07, 07-08(horizontal) Common size income statement 98-99, 99-00 Common size income statement 99-00, 00-01 Common size income statement 00-01, 01-02 Common size income statement 01-02, 02-03 Common size income statement 02-03, 03-04 Common size income statement 03-04, 04-05 Common size income statement 04-05, 05-06 Common size income statement 05-06,06-07 Common size income statement 06-07, 07-08
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List of charts
Chart no 1 2 3 4 5 6 7 8 9 Name of charts Chart on capital employed Chart on accumulated loss Chart on net profit or loss Chart on sales Chart on administration expenses Chart on fixed assets Chart on net current assets Chart on revenue from other sources Chart on cost of production
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EXECUTIVE SUMMARY The K.H.D.C.L.td is the manufacturing unit, engaged in procurement of the cotton clothes and manufacturing of variety of cotton cloth products such as Napkin, Plain towel, Bed sheets, Saris, Lunges, etc. It is undertaking lot of activities to support the Weavers who are the main producers of clothes. The manufacturing oriented undertakings require large amount of investment in fixed assets and current assets namely, inventories, receivables and cash. There is need to analyze the financial performance of the organization. The organization has a large amount of accumulated loss from last many years. So I took the topic of my project is factors affecting to the development of K.H.D.C.L.td. in KARNATAKA HANDLOOM DEVELOPMENT CORPORATION, GADAG. This project deals with the study about ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td. At KARNATAKA HANDLOOM DEVELOPMENT CORPORATION, GADAG. OBJECTIVES OF THE STUDY 1) To know the financial status, long term financial position of K.H.D.C.L.td through comparative balance sheet.
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2) To know the growth rate in profit, expenses, cost of goods sold through comparative income statement. 3) To know the proportion of various elements of income statement items to the total sales revenue of K.H.D.C.L.td through common size income statement. 4) To know the proportion of various elements of balance sheet items to the total capital employed of K.H.D.C.L.td through common size balance sheet.
SUGGESTIONS 1 .The firm should minimize its administrative expenses to increase profit. 2. The firm should control the operating and manufacturing expenses.
CONCLUSION By analysis and interpretation of financial statements of K.H.D.C.Ltd. I conclude that K.H.D.C.Ltd manufacturing expenses are rising from year to year, and also companies various departments established in different places which raises the administration expenses due to these reasons company was in loss from several years, but from last two years K.H.D.C.Ltd was in profit because K.H.D.C.Ltd controlling these expenses.
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Karnataka Handloom Development Corporation (KHDC) sells its products by the name of Priyadarshini handlooms. They are famous for designs and quality. Priyadarshini handlooms like saris, bed sheets, shirts and towel, napkin are used by the people of inside and outside of India. As the name suggests it is corporation for development of weavers. In Karnataka more than 13 places K.H.D.C centers are working. The yarn is collected from mills. It is processed and sold in the market by the brand of Priyadarshini handlooms. K.H.D.C. Ltd. Karnataka Handloom Development Corporation Ltd. Was established on Dec 12, 1975. At that time Indira Gandhi was prime Minster & first at banahatti then other places. The main role of K.H.D.C.L.td is to provide continuous employment opportunity to handloom weavers. It is an Employment oriented corporation and not sales oriented. OBJECTIVES OF K.H.D.C.L.td.
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The main objectives of the corporation are the intensive handloom development project should in a position to undertake, the following services for the weavers under the unit. 1) 2) 3) 4)
5)
To provide continuous employment at weavers for their steady lively hood. Arrangements for the modernization of the handlooms wherever necessary To release the weavers from the clutches of master weavers. Organizing 100% marketing facility for the handloom products. Maintain raw-material bank with adequate stock of yarn, dyes &
make the products more attractive...
chemicals and spare parts for the hand looms so that continuous Supply of these inputs to the weavers in the unit could be maintained If necessary organized a suitable dyeing unit to support the production Program of the units. Karnataka Handloom Development Corporation having 150 units, 40 show rooms in & out side of the state. The other states like Mumbai, Calcutta, and Delhi etc. it covers from taluka level to metropolitan city. On the basis of income it covers high & medium class people. For example: middle class people purchase the 60/90 size bed sheets. & high class people purchase 90/108 size bed sheet. The Head office of K.H.D.C.L.td. at Hubli & Bangalore. The Gadag-Betageri branch is directed by Hubli branch. Before the Bangalore is only the Head Office, it is not so effective due to this to concentrate on the development of North Karnataka weavers the head office is also started in Hubli. The K.H.D.C.L.td is first & famous for the direct issue of Raw material, & Direct pre-requiring the finished goods by paying conversion charges.
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Many steps has been taken by K.H.D.C.L.td towards the coverage of more number of handlooms , weavers & stating of more intensive handloom development projects. It has started raw-material cum procurement depots & enterprises within and out side the state also. There are 2 export oriented projects with an assistant of state and central government, functioning in the state. It is providing the continuous employment opportunity to the 15000 weavers families. On 1977 the K.H.D.C.L.td has started in Gadag district. Under this 18 sub-centers are working 1) Betageri 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) Narasapur Shigli Laxmeshwar Khanapur Gajendragad Mushigeri Allavandi Mundargi Hombal Hebbal Kumta etc.
Under this centers varieties of products are produced like multithread design & plain bed sheet, Tarkee towel, carpet, drill, cerement, lunge etc. these products are well in demand
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There are totally 150 production units, 40 show rooms of K.H.D.C.L.td within and out side Karnataka. The products of K.H.D.C.L.td. consumed by taluka level to metropolitans city people. Like Mumbai, Calcutta, Delhi, etc. Based on the income of the people goods are consumed. Like middle income people purchase 60/90, bed sheets. And high income people purchase 90/108, bed sheets. One of tuff competitor for hand loom industry is power looms. For weaving 1 meter cloth the handloom industry takes Rs 10. In other hand power loom takes only Rs 2. The state government gives 20% and central government gives 10% rebate/discount on K.H.D.C.L.td products. BRANCHES OF PRODUCING POPULAR COTTON PRODUCTS. 1) 2) 3) 4) . 5) 6) 7) 8) 9) Sub-centre Shigli Sub-centre Laxmeshwar Sub-centre Gajendragada Sub-centre Hunsigeri Hubli Button bed sheet. Meera bed sheet (Govt. 2/80 cotton lunge Casement V.V.Shirtings Polyester production centre (Betageri). Common weaving centers (Betageri). Common weaving training centre. Sub centre Narasapur 60/90 inch Rib bed sheet. 90/108 inch Bed sheet. Zakard bed sheet (Narasapur) V.V.Shirtings.
hospitals)
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INTRODUCTION TO INDUSTRY HANDLOOM :Handloom industry form a part of Indias heritage and exemplify the richness and artistry of the weavers the 1997-98 annual report of the ministry of textile states that the handloom industry is the largest direct and indirect employee (more than 3million weavers & 12.4 million other persons)among the traditional industries. The production of handloom fabrics was 7.862 million square in 199798 & contributed to nearly 23% total cloth produced in the country. The hand weaving of cloth from yarn (i.e. produced from mills) forms an important segment of rural Industry. With respect to spread over geographical area, employment opportunity, export. The art of weaving handloom fabrics in India an ancient traditional technique. The Indian craftsmen have excelled in their creative craftsmanship decoration and ornamentation. The economy of a country depends on its industrial development in addition to agriculture. Handloom industry is considered as one of the largest cottage industry. Cottage industry provides large number of employment opportunities to India, in where population is increasing in a rapidly. Centuries ago our ancestors were using the leaves of trees leather of animals for cover &safe their body from rain, winter etc. slowly they found that 2 series of threads can be interlaced, which is more comfortable than leaves & leather. Gradually they Babasabpatilfreepptmba.com
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found equipments made of wood for interlacing two set of threads of which result was fabric & process is called weaving.
People prefer firstly for self consumption, and then they also start producing to others similarly Indian handloom industries also producing for export purpose. The art of weaving is improved generation to generation with improved techniques. Innovative techniques are using to produce the fabrics with modernizing looms. Latest looms are shuttle looms such an Rapier, Sulzer, Air jet, water jet & multiphase loom more production can be made with this looms means 300-500 picks/minute. It produces variety of cotton cloths .Indians are more likely to wore different type of clothes. For a women no. of costumes are produced by a handloom industry. In that saris are assumed a special importance which can be wore in different traditional styles. Saris are fashioner for a woman personality. In a social life it plays a significant role. Saris are symbol of our national code dress for women. The demand is their for Indian saris not only in India but also in foreign countries. Handloom industry one of the important segment of the cottage industry among the rural folk next only to agriculture. Cottage industry helps to equal distribution of income and wealth of the country. Many farmers are not having the work for 12 months in a year. Work only when there is a monsoon. After that they are unemployed. Handloom industry provides full time employment to the farmers. After the agriculture, cottage industry provides many employment opportunities to the rural people. Because large number of rural people are illiterate. This can be justified by the fact that 96 lakhs handloom weavers are spread throughout, the length & breath of Babasabpatilfreepptmba.com
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India out of the total contribution of textile industry handloom sector constitutes about 20% of the goods produced every year. It also helps to get more foreign exchange to our economy. The handlooms (Reservation of articles for production) act 1985 aims at protecting the interest of weavers. Under this act, textile articles are presently reserved for exclusive production by handloom units (as per the government notification dated July 26, 1996) Indian womens are more attracted to different variety of saris, with low cost and high quality of saris. This can be made by power looms. Because it uses machines which are run by power, skilled labors, here cost is reduced also produce more products with a short time & good quality .generally it is not possible for hand loom industry. Because it is run by workers they take more time for producing and cost is more. Raw material used saris are silk cotton, Reshmi zara, thread silk, yarn, cotton and different type of designs. Generally the size of saris is 46 and the size of weaving machine is 50. The wage is depending on design working of saris like chikki paras, thoda paras. This can weave by one person or more, for more than 2 days, plane saris take only 1 day depending on time factor. There is a direct selling of products .here customers come to home and buy the goods. The selling price depending on market rate & expenses made for that product.
SWOT ANALYSIS OF HAND LOOM INDUSTRY. I) STRENGTHS The demand is there for traditional hand weaved clothes.
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II) III) IV) V) The large market is there in the out side state also for cotton clothes A complete support from the government. It helps the weavers from reliving from the clusters. The K.H.D.C. Ltd products sold by the brand name of
especially saris, like Maharashtra.
PRIYADARSHINI HAND LOOMS THE HOME OF ORIGINAL HAND LOOMS. This is having one of the best good will in the Indian market. VI) , VII) K.H.D.C.L.td is gets every year government orders For the EDUCATION Department, SOCIAL WELL Department Zilla panchayat department, KSRTC Department, HEALTH Department. K.H.D.C.L.td is having export cell under the brand name PRIYADARSHINI INTERNATIONAL HAND LOOMS THE HOME OF ORIGINAL HAND. LOOMS At Bangalore which is concentrated on Export market. VII) VIII) IX) work are available. Betageri branch only produce the Cotton Rib bed sheets. The durability of hand loom products is minimum 6 years but power The hand loom products are value addition with durability and hand
looms not more than 3 years.
I) II)
WEAKNESS Dependence on few products. Not possible to maintain the punctual time compare to Power looms. Babasabpatilfreepptmba.com
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III) IV) V) Production cost is more comparing to power looms. The employees are migrating from hand loom to power loom. To retain the employees pay more which increase cost of production.
OPPORTUNITIES I) II) III) the price. THREATS I) II) Number of skilled weavers is decreasing day by day there May be weavers are not available in future. If there is no government assistant then it is not possible to to hand loom industry to stand in the competitive world. More demand for hand loom products. Multi thread design get only hand loom industry. Value addition can be made by hand work, it increase the value also
9 1) 2) 3) 4) 5) 6) 7) 8) 9)
PROJECT OFFICES OF K.H.D.C.L.td GADAG-BETAGERI BHAGYA NAGAR (KOPPAL) RABAKAVI BANAHATTI RANEBENNUR ILKAL BASAVKALAYAN GULBARGA RAMDURGA.
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Company Profile NAME OF THE ORGANISATION: KARNATAK HANDLOOM DEVLOPEMENT CORPORATION. YEAR OF ESTABLISHMENT TOTAL SHOW ROOMS PLACES OF SHOW ROOM MANAGING DIRECTOR BUILDING BANKERS Babasabpatilfreepptmba.com : : 1975 60
: DEHLI, KOLKATTA, BANGALORE, HUBLI, GADAG-BETAGERI, CHENNAI etc. : Dr H. BHASKAR, IAS (FOR WHOLE STATE) : RENTED, 60000 P.a. : STATE BANK OF INDIA.
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STATE BANK OF HYDERBAD. CANARA BANK. SYNDICATE BANK. FEDERAL BANK LIMITED. PUNJAB NATIONAL BANK. CORPORATION BANK. VIJAYA BANK. STATE BANK OF PATIALA. REGISTERED OFFICE , : NO 3, 2nd Floor ENKAY COMPLEX KESHAVPUR, HUBLI, KARNATAKA : Sri M.D. LAXMINARAYANA Sri GOOLIHATTI D. SHEKAR Sri ARAVIND G. RISHBUD. MANAGING DIRECTORS : Sri S.N.JAYARAM, IAS., Sri I.R.PERUMAL,IAS., DIRECTORS : Sri INDER DHAMIJA, IAS., Sri MAHENDRA JAIN, IAS., Sri ASHOK KUMAR C. MANOLI, IAS., Sri MOHAMED SANAULLA,IAS., Sri YOGENDRA TRIPATHI,IAS., Sri G.KUMAR NAIK,IAS., Sri H.BASKAR, IAS., Sri B.S. RAMPRASAD,IAS., Babasabpatilfreepptmba.com
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CHAIRMAN

Sri P.B. RAMMURTHY, IAS., Sri AJAY SETH, IAS., FUTURE PLAN TURN OVER WORKERS BASIS OF SALARY MACHINES WORKING DAYS PER DAY PRODUCTION BRAND NAME SALES : TO COVER ALL WEAVERS. : 90 CRORES (K.H.D.C.) 2 CRORES GADAG BRANCH.
: 25 WEAVERS, 5 VENDORS. : PEACE RATE SYSTEM. : NO. : 365 DAYS. : 120-140. : PRIYADARSHINI HANDLOOMS. - THE ORIGINAL HOME OF HANDLOOMS
: 60-70 CRORE P.a.
DURABILITY OF K.H.D.C. MINIMUM 6 YEARS. PRODUCTS : CUSTOMERS COMPETETORS AUDITORS : MEDIUM AND HIGH INCOME PEOPLE. : POWER LOOMS : BASAVARAJA & DILEEP CHARTED ACCOUNTANTS, # 14, 2nd FLOOR, MADHU COMPLEX BURGALMATT NORTH CROSS ROAD, Babasabpatilfreepptmba.com
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V.V. PURAM, BANGALORE-560004. REGISTERED OFFICE : N0.2, IInd FLOOR, ENKAY COMPLEX, KESHAWAPUR, HUBLI-580023 KARNATAKA. PHONE: 0836 2268762. BANGALORE OFFICE NO.1, TANK ROAD, PRIYADARSHINICOMMERCIAL COMPLEX HALASURU, BANGALORE-560042 PHONE 080-25575421-425 FAX 080-25575426 E-mail :khdc@vsnl.net PRODUCTS: COTTON MULTI THREAD BED SHEETS PLAIN TOWELS, NAPKINS PLAIN BED SHEETS, CARPET TARKISH TOWELS, DHOTIS POLYSTER SARI, DRILL CLOTH, COTTON SARI
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ORGANIGATION CHART OF K.H.D.C.L.td.

CHAIRMAN/BOARD MANAGING DIRECTOR
PRODUCTION DEPARTEMENT
QUALITY CONTROL DEPARTEMENT
MARKETING DEPARTEMENT
FINANCE DEPARTEMENT
HUMAN RESOURCE DEPARTEMENT
TECHNICAL OFFICER
SALES MANAGER FINANCE CONTROLLER ASSISTANT SALES MANAGER, GRADE-1 JOINT DIRECTIOR
PROJECT INSPECTOR /ASSISTANT TECHNICAL OFFICER
ASSISTANT TECHNICAL OFFICER
ACCOUNT MANAGER ASSISTANT SALES MANAGER, GRADE-2 SENIOR ACCOUNT MANAGER
PERSONNAL OFFICER
PROJECT INSPECTOR
ASSISTANT PERSONNAL OFFICER
ASSISTANT ACCOUNTING OFFICER PRODUCTION MANAGER (COTTON) (BANGALORE ) PRODUCTION MANAGER (SILK) PURCHASE DEPARTEMENT
ASSISTANT/ CLERK
ACCOUNTANT
PRODUCTION MANAGER (HUBLI)
PROJECTADMINIST OR /TECHNICAL
ASSISTANTS
WEAVERS
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DESIGN OF THE STUDY 3.1 Statement of the problem Financial analysis being an integral part of overall corporate management and it is one of the powerful tools of financial analysis. The analysis of financial statement of K.H.D.C.L.td. is done in order to know the companys financial position, growth rate. Etc.
3.2 Objectives of the study For the purpose of any research, objective is must. It shows the direction with which the task can be accomplished. The specific objectives of the study are 1) To know the financial status, long term financial position of K.H.D.C.L.td through comparative balance sheet. 2) To know the growth rate in profit, expenses, cost of goods sold through comparative income statement. 3) To know the proportion of various elements of income statement items to the total sales revenue of K.H.D.C.L.td through common size income statement. 4) To know the proportion of various elements of balance sheet items to the total capital employed of K.H.D.C.L.td through common size balance sheet. 5) To know the relationships among the groups either for decisions or for future prediction through analysis of these two years financial statements. 6) To know the progress, efficiency, paying capacity of the firm from the interpretation of these two years financial statements.
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3.3 Scope of the study The scope of the study is to find out financial position, growth rate in profit. It is done through the Balance sheet and income statement of the company for the periods 1998-99 to 2007-08. 3.4 Methodology This project is an analytical research where in the researcher has to use the available facts as information and analyze these to make a critical evaluation of materials. This is also an applied research with an aim to find a solution for immediate problems facing industry or the firm. The methodologies followed in the analysis of the financial statement are Comparative statement, Common size statement, Trend analysis, Ratio analysis, fund flow statement and cash flow statement. 3.5 Purpose of the study The purpose of doing this project is mainly to make thorough a study of the financial analysis and interpretation of the company. To access the companys trends for the last ten years with regard to financial performance. 3.6 Sources of data collection
1.
Primary data: The data required for the project was collected from consulting the assisting supervisor by conducting interviewing & discussion.
2.
Secondary data: The major source of data for this project was collected from annual reports, profit and loss account, manuals.
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Plan of analysis This study is conducted with the help of statistics figures & techniques like Graphs & charts for better comparison and interpretation. Tools and techniques used for analysis The following are the methods of financial analysis used in general. Comparative income statements Common-size income statements Comparative balance sheet Common-size balance sheet. 3.7 Limitations 1. The study is done only on the Balance sheet and Profit and loss account. 2. Study is based on information provided by the company.
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DEPARTEMENTS OF K.H.D.C.Ltd There are totally 6 departments, namely

1)
1) Production department. 2) Finance department. 3) H.R.department. 4) Marketing department. 5) Quality control department. 6) Purchase department.
I)
PRODUCTION DEPARTEMENT. This department is the important for any type of industries. Because all other
departments are depend on this department. Means the entire departments except finance start there work after completing the production department. PRODUCT PROFILE 1) Cotton multi thread bed sheets. 2) Plain towels. 3) Napkins 4) Plain bed sheets. 5) Turkish towel. 6) Carpet. Babasabpatilfreepptmba.com
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7) Lungees. 8) Polyester sari. 9) Drill cloth. 10) Cotton sari.
The different size of yarn is requiring for weaving the different type of products. Like, 1) For bed sheets, towels, 2/40 count of yarn is required 2) Lunges: 2/80 count of yarn is required 3) Sari: 2/100 count of yarn is required.
STRUCTURE OF PRODUCTION DEPARTEMENT.
CHEAP MANAGER OF PRODUCTION
PROJECT ADMINSTRATOR
TECHNICAL OFFICER ASSISTANT TECHNICAL OFFICER / PROJECT TRANSMITTOR
UNIT SUPERVISORS
WEAVERS
HELPERS
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OBJECTIVES OF PRODUCTION DEPARTEMENT. a) maintain a good quality in a production b) Try to timely delivery of products. c) Reduce the cost of production. d) Increase the productivity. e) Keep the customer satisfaction by qualified products.
FUNCTIONS OF PRODUCTION DEPATEMENT. 1) Receiving the Grey yarn. 2) It will be dyeing according to required colors.(process of coloring the yarn.) 3) Pre-pretary work 4) Weaving 5) Dispatch of ready goods to warehouse. Here there are 25 weavers, and 5 vendors are working in the gadag production centre. Weavers work on peace rate system therefore there is no any fixed working time for weavers. They may come at any time.
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FLOW CHART OFPRODUCTION DEPARTEMENT.
Receiving the grey yarn
Dyeing the yarn
Pre-pretary work
Weaving
Packing
Warehouse
1) Receiving the grey yarn: This is the raw-material for weaving clothes. Generally
the K.H.D.C.L.td provides the raw-material, after testing through quality control lab. If the yarn is good quality then only it is accepted and sent to its all the Babasabpatilfreepptmba.com
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production units. and also opinion of the unit supervisor the quality of rawmaterial is good. The raw-material is purchased through offering the tenders. I.e. take care by the head office. But in certain cases the production unit is order to selected mills. Send the massage to mills that dispatch the raw-materials to quality control lab. The lab checks the quality of yarn and send to the yarn required production units. The purchase department made the payment to the mills through cheques. The K.H.D.C.L.td always makes the payments through cheques only. One of the main function in this organization is there is a direct issue of rawmaterials and direct pre- requiring the finished goods by paying conversion charges. The quality control labs established in HUBLI and in BANGALORE.
For the present year corporation has issued 15.31 lakhs Kgs of raw-material worth of Rs 22.47 Crores to the weavers during 2007-08.
2) Dyeing according to the required colors: Dyeing means it is the process of
coloring the yarns there are different types of dyeing namely vat dyeing, nefthol dyeing, and reactive dyeing. for bed sheets reactive dyeing is used. The color selection of dyeing made by the managers and supervisors they decide according to the market demand for which color the demand is more and sales are also more. That color dyeing is ordered. Many MSEs purchase the ready colored yarn from the local traders. But only K.H.D.C.L.td and co-operative society at Gajendragad and also 8-10 master weavers at Gadag do the dyeing at there dye houses. dyeing is done in open tanks without any precise temperature controls and dye material circulatory system.
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(The dyed yarn which is ready for pre-preatary work.)
3) Pre-pretary work: This is the third stage of producing handloom products. In this
stage colored yarn is there i.e. to be roll on neatly. That work is done by the women at their home. They get remuneration for that I.e. fixed by the manager. After that these rolls neatly rolled to bim. It means there are many thread of roles that are arrange according to colors and designs.
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(The yarn which is rolling to the bim through that the weaver weaves the Drill cloth.)
4) Weaving: This is also called as loom stage. Here weavers weave the cloth with
his tactical skill. Because weaver is well known with the way of weaving.
(The weaver weaving for the making Drill cloth.)
4) Dispatch to warehouse:
after completing the handloom product Now the products are packed safely and send to warehouse. There are 2 warehouses those are i) grey warehouse and ii) finished warehouse. Babasabpatilfreepptmba.com
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Grey warehouse means raw-material warehouse, where raw- materials are stored. And finished warehouse means where finished goods of materials are stored. The vehicles used for transporting the materials and finished goods are VRL, GPT, and K.H.D.C.L.td also having its own vehicles which can be help to dispatch the materials. There are 2 warehouse are there namely grey warehouse and finished warehouse.
Grey warehouse: it means this is warehouse in where the semi finished use for further processing.
grey
yarn is stored which is use for further processing. For example the Drill cloth is
Finished warehouse: it means this is a warehouse in where the finished goods are store generally the products produced by gadag centre is dispatched to Hubli ware house.
DETAILS OF PRODUCTION FOR THE YEAR 2007-08 AND 2006-07

PRODUCTION VARIETY Silk Janatha varieties Non janatha varieties Polyester TOTAL 2007-08 (In Lakh ) In Lakh Rs) 1.99 435.91 11.32 233.98 42.97 917.61 52.55 1663.43 108.83 3250.93 2006-07 (In Lakh ) In Lakh Rs) 1.68 379.69 13.80 257.33 40.53 905.43 51.35 1624.32 107.36 3166.77
The total value of production of during the year is in the order of Rs 3250.93 lakhs.
II) FINANCE DEPARTEMENT
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Finance is an important function and activity of every organization. A separate department is created to mange the finance such department called finance department. Such department is supervised by a head, it may be called by many names like finance manager, CEO of finance etc. The financial controller & officiating company secretary of K.H.D.C. Ltd is Mr.A.KUMARSWAMY. As required under Section 619(2) of the companies act 1956, government of India on the advice of the comptroller and auditor general of India appointed M/s Basavaraj and Dileep, Charted Accountants, Bangalore as the statutory auditors for the year The main activity of the finance department is to keep all the accounts and financial transactions up to date. The officials involved for finance department for K.H.D.C.L.td. 1. financial controller 2. Assistant manager 3. Accounts (clerks) Financial controller and assistant manager are in top management. The accountants are worked in the each units of K.H.D.C.L.td. in the GADAG centre of production department namely Mr.SHESHAPPA working as a clerk. As the clerk of K.H.D.C.L.td they maintain monthly statement for Gadag production centre are given as follows. 1. Raw-material statement. 2. Finished goods statement.
4. Receipt and payment statement.
These statements are pre-paring monthly and send to a project office. Then project office manager collects all the above statements from its all the units and sends these statements to the head office. Like Babasabpatilfreepptmba.com
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Wise head office collects financial statements from all its project offices for The pre-paration of related financial statements. Like Profit and loss accounts and Balance sheets. One of the dis-advantage of the finance department is the top management does not send the financial performance to its all the units of K.H.D.C.L.td.
1) Raw-material statement: This is a statement which shows the total number of raw-
materials received from ware house/mills/corporations the clerk enter how much yarn is received on which day, time, quantity, price etc. and also how much yarn is issue to weavers for weaving with date, time, quantity etc. it involves the opening balance, received, transferred for consumption, and closing balance.
2) Finished goods statement: This is a statement which shows the total number of
finished, semi-finished goods received from weavers and how much finished goods are dispatched to finished goods warehouse with the time of issue, place of issue, quantity of issue. it is also covers the opening balance of finished goods the received finished goods from weavers and finally how much is issued to a finished goods warehouse.
3) Receipt and Payment statement: This is a statement which shows the monthly
total receipt and payment transaction. Like the payment to weavers, payment for electricity bill, payment for repairs, payment for sundry expenses. And receipt involves cash from bank, cash received from corporation, both are involve opening balance, payment made, cash received, and closing balance of both the receipt and payment statements
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FINANCIAL RESULTS OF K.H.D.C.L.td FOR THE YEAR 2006-07, 2007-08 ARE SHOWN IN THE FOLLOWING SHEDULE. Particulars Proffit/Loss before interest and description Interest and depreciation Proffit for the year Prior period adjustement /FBT Net Proffit for the year 2007-08 2006-07 (Rs in lakhs) 538.85 551.57 505.17 521.52 33.68 30.05 (+) 58.73 (+) 406.65 92.41 436.70
DUTIES AND RESPONSIBILITIES OF FINANCE DEPARTEMENT IN K.H.D.C.L.td: a) Handling all cash and bank transaction b) Recording all Issued and Received Raw-materials, finished goods. c) Preparing budget and comparing the actual with the budget figures and bring to notice of management major variances if any d) Periodical reconciliation of all subsidiary book balances in control accounts. e) Maintaining the statutory records such as minutes of the Boards and shareholders meeting, register of charges created on the assets of the company, director interested register, fixed assets register, investment register etc. f) Filling the statutory forms as required by laws. g) Preparing and presenting financial and operating results on monthly basis. h) Calling the audit committee meeting periodically and discus the efficiency of internal control system in different areas. i) Getting the accounts audited. j) Calling and conducting the Board, committee and shareholders meeting and maintaining the minutes of the meeting. k) The proper utilization of funds provided by government for K.H.D.C.Ltd. Babasabpatilfreepptmba.com
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l) Providing all the financial schemes, packages to the weavers as they are Sanctioned by the Government Of Karnataka.
III)
HUMAN RESOURCE DEPARTEMENT.
As it name states the department is involving in the development of human resource of the organization. The productivity of the organization is increases when the organization treats the employees as an important asset but not the liability of the organization. The same way K.H.D.C.L.td is involving to encourage the weavers, employees by offering many facilities. In Gadag production centre 25 weavers, 5 vendors are there. Over all in K.H.D.C.L.td totally 12000 weavers, more than 1500-2000 employees are working in the state of Karnataka. As already said that there is no fixed working time for weavers. The Gadag center start it works at 10.30 am. And close at 6.00 pm. During this period weavers are work. Because here weavers are get there remuneration on the basis of piece rate system. Here for 1 meter Rs 10.50 is paid, paid to the weavers. For 1 Bed sheet Rs 35.50 is paid, to the weavers. Per day production average 120-140. 1 Bed sheet = 2.35. Generally wavers are appointed locally. The weavers having secondary education. Selection of candidate based on his actual work performance .means through practical observation the candidate is selected. Weaving skill is through heredity. All the persons cant have those skills. Weavers are belonging to the devanga committee. Especially these people are having the skill of weaving; its like that no need to teach to the child of car painter to how to make doors, windows etc. Babasabpatilfreepptmba.com
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The K.H.D.C.Ltd give the training to the weavers for up gradation of there skills. When government sponsors for the training then training is given to the weavers. There are 2 types of training is given to the weavers. Those are as below, ADVANCE TRAINING BASIC TRAINING.
1) Advance training: this is a training given to the weavers who are well worse with the
basic knowledge of weaving .this training is given to the weavers for further up gradation of skills, when new variety of clothes are require to be produce. And to increase the productivity, new production techniques are taught to the weavers.
2) Basic training: This is a training given to those who are completely new to the field.
Generally they dont know anything about the basic knowledge of weaving. To those people the training is given.The duration of the training period from the extent of 3 to 6 months, 6 to 9 months. The training period depend on the budget given by the government. For that Training is conducted at rented building, and trainer is appointed by the top management. The basic training at HOMBAL is conducted in 1997-98 which is very name of training is STEP ( SUPPORT OF TRAINING FOR EMPLOYMENT PROGRAMS) for the rural womans. Benefits provided to the weavers
1) Thrift fund scheme: The Corporation is deducting 6-8%of the wages of the
weavers towards thrift fund scheme and an equal amount is contributed by the corporation & is returned to the weavers also with interest at the time of retirement from job.
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2) Life insurance scheme: The weavers of this corporation have been brought under
a life insurance scheme in which the weavers have to pay 15% per annum. In case of any eventuality the corporation was paying Rs 5000. But at present for group, life insurance giving Rs 10000/- per family as a nominee & otherwise Rs 3000/per family.
3) Housing scheme: The corporation was also constructed the weavers colonies for
allotting the houses to those weavers who are not having the permanents houses. Under the Dutch government 200 housing facilities are provided in GadagNarasapur branch. Apart from above benefits weavers also enjoy living cum working shed. Free &current supply free spects at olden age, group insurance, docter facility, free TV, stages for drama, dance i.e. for cultural activities & a green card for ration.
HEALTH INSURANCE CARD
(THROUGH ICICI LOMBARD GENERAL INSURANCE COMPANY)
for getting the Doctors facility. Presently Dr Ayyangowdar is appointed for Gadag weavers to get health facility. For getting this facility weavers pay Rs 50 and they enjoy 1 year service for 4 family members. In addition the weaver gets festival advance at the rate Rs 100 per year, per weaver. Also a cloth is given to them & 25% of cost is treated as subsidy & the rest is paid in installments. The corporation is also having training center when training is imported to weavers on modern techno SC/ST weavers are Babasabpatilfreepptmba.com also trained.
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Duration of course is 10 months. Stipend is paid Rs 300 per year.
From 1999-2000 to 2005-06 in Narasapur, Gadag District 4 sheds are undertaken. By installing 35 advanced Jacard Machines, they producing variety of products like Jacard Bed sheet, Tarkee towel polyester furnishing etc. The employees of K.H.D.C.L.td are promoted on the basis of service and their degree. Generally the K.H.D.C.L.td doesnt appoint required employees immediately, it balance by transferring the employees from one place to other where shortage is there.
Objectives of K.H.D.C.L.td towards weavers.
1) To provide continuous employment at weavers for their steady livelihood. 2) To release the weavers from the clutches of master weavers. 3) To improve the standard of living of the weavers.
AVERAGE ANNUAL INCOME OF WEAVERS.
Sl.NO 1 2 3 4 5 6 7 Variety of products Bed sheet Tarkee towel Polyester sari Cotton sari Casement cloth Drill cloth Cotton lungee Production per day 3 meters 2 meters 9 meters 7 meters 5 meters 4 meters 4 meters Wages in Rs per meters. 10.50 20 11.50 10 7.50 10.50 12 Production per month 90 meters 60 meters 300 meters 240 meters 120 meters 120 meters 90 meters
Income per month

945 1200 3450 2400 900 1260 1080
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Depending upon the efficiency of the weavers the weaving work is done. And also depending upon the size and quality of products the wage rate also change. Sometime on the basis of demand products wages are change. Generally the government changes the wage rate as per the changing needs of economy. The wage rate may change within Rs15, not more than that.
IV)
MARKETING DEPARTEMENT. The K.H.D.C.L.td introducing & selling its products with the brand name of PRIYADARSHINI HANDLOOMS THE ORIGINAL HOME OF HAND LOOMS. Here the marketing department involves the show rooms. The mainly show rooms are established in Bangalore, Hubli, Shivamogga. In Bangalore only 8-10 show rooms are there. 80% of sales made to government for the VIDYA VIKAS YOJANA. In the form of drill cloth. After weaving by the weavers it send to grey ware house, where semifinished clothes are stored. Drill cloth is send to Grey warehouse for further production. Because there is need to make the coloring of drill cloth as per needed/ordered color by the Karnataka Primary Education Board, for its Government school childrens. The remaining 20% of sales by the janata & non janata clothes. Marketing managers are control the show rooms. Here there is a sales manager reported to the marketing managers. And there is a two assistant sales manager like grade-1, grade-2. Who are reporting to the sales manager
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Each show room contains 25-30 Employees. The marketing manger has attended the ware house and orders the products on the basis of needs & demand of the products in the market. The K.H.D.C.L.td does not sell the products directly it sells through Retail, whole sale, S.S.D.S, V.V.Scheme etc.
Weavers of K.H.D.C.L.td are not connected to the sales or marketing. They are supposed to hand over the products to K.H.D.C.L.td which is being sold through retail out-lets or in exhibition or in some times sold in bulk Quantities to other states. Hence the marketing officials if K.H.D.C.L.td will steady the common taste and plan production accordingly marketing steady is the key role in K.H.D.C.L.td.
THE SEGMENT WISE SALES TURNOVER DURING THE YEAR 2006-07, 2007-08. SEGMENTS
Retail sales Wholesale sales S.S.D.S V.V.Scheme Other sales Total Less Discount/Rebate Total
2006-07 Rs in Lakhs)
1496.27 679.09 561.85 561.85 22.16 8770.44 451.71 8318.73
2007-08 (Rs in Lakhs)

1693.07 1410.07 359.03 359.03 51.36 9481.09 593.20 8887.89
There is a highest sale by Retailers for both the years. The K.H.D.C.L.td. is desire to continue the maximization of sales through retailers for the coming years also. Introducing the Babasabpatilfreepptmba.com
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new varieties like Silk embroidery Saris, Silk Shirts, Silk ties, Executive shirts during the year. Because the sales of these products are Very much Encouraging. In order to increase retail sales turnover, the corporation has participated at exhibitions in NH Expos & organized special sales campaigns at major cities like Bangalore, My sore, Hubli, and Belgum during the festival time. Marketing purpose the K.H.D.C.L.td. is using the various media like News paper, Radio, Pamphlet etc are used. K.H.D.C.L.td exports their products various countries like Russia, Egypt, & America. Only silk saris, Silk shirting, Cotton shirting readymade, products is exported. According to their circumstances prices are change for exports. V) QUALITY CONTROL DEPARTEMENT. This is a department where the Quality of raw-materials is checked. Generally the K.H.D.C.L.td provides the raw-material, after testing through quality control lab. If the yarn is good quality then only it is accepted and sent to its all the production units. And also opinion of the unit supervisor the quality of raw-material is good. The rawmaterial is purchased through offering the tenders. I.e. take care by the head office. But in certain cases the production unit is order to selected mills. Send the massage to mills that dispatch the raw-materials to quality control lab. The lab checks the quality of yarn and send to the yarn required production unitsThe quality control labs established in HUBLI and in BANGALORE. Hubli laboratory consist of 6 technical staff 8 helpers
The flow authority of Quality control department had shown as below.
MANAGER OF QUALITY CONTROL
TECHNICAL OFFICER
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ASSISTANT TECHNICAL OFFICER
PROJEC INSPECTOR
Yarn testing Laboratories consists the following machines.
Quality control machine
C.S.P. Machine (Count Strength Product) Checks the measure of the product.
VI)
PURCHASE DEPARTEMENT.
This is a department which is involve in the purchasing of raw-materials, i.e. grey yarn. The purchasing of Raw-material is done by the Head office. By offering the
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tenders. Which applicant quotes low Rate that tender is selected for supply of Rawmaterial. After purchasing of raw-material it is send to Quality control department for the checking of the quality of Raw-material. If the quality is standard then only it is accepted and sends to production department. Payment to suppliers is made only through cheques, but not in cash. The silk yarn prices for the during the year April 2007 was Rs 1275per k.g and prices during the year came down to Rs 1203 per kg during November 2007 and at the end of the year i.e. during the march 2008 the price was Rs 1256 per k.g. CONSTITUTION OF SUB COMMITTEE OF PURCHASE DEPARTEMENT IS INVOLVES AS BELOW. 1) Managing Director of K.H.D.C.L.td. 2) The Director on the board representing the department if Sericulture Govt.of.Karnataka. 3) The Director on the board representing the department of finance of the Govt.of.Karnataka
4) The Director on the board representing the department of Handlooms and Textiles of the Govt.of.Karnataka. FOLLOWING SHEDULE SHOWS THE YARN ISSUE TO THE WEAVERS FROM THE YEAR 1998-99 TO 2007-08.
Particulars
Yarn issue to weavers
1998-99
4163.71
1999-00
384409
00-01
2798.34
01-02
2255.15
02-03
2753.98
03-04
2709.28
04-05
2111.22
05-06
2531.27
06-07
2182.40
07-08
2247.41
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INTRODUCTION TO THE STUDY. The K.H.D.C.L.td. is the manufacturing unit, engaged in procurement of the cloth and manufacturing of cloth products such as drill cloth, lungi, sari, etc. It is undertaking lot of activities to support the weavers who are the main producers of clothes. The study is involves financial analysis and interpretation of K.H.D.C.L.TD. it compares the financial statements of K.H.D.C.L.td for 2 years namely 2006-07, 2007-08. To know the how earnings, expenses, working capital, production, sales etc are hoe much increased or decreased during these two years. OBJECTIVES OF THE STUDY. 1) To know the financial status, long term financial position of K.H.D.C.L.td through comparative balance sheet. 2) To know the growth rate in profit, expenses, cost of goods sold through comparative income statement. 3) To know the proportion of various elements of income statement items to the total sales revenue of K.H.D.C.L.td through common size income statement. 4) To know the proportion of various elements of balance sheet items to the total capital employed of K.H.D.C.L.td through common size balance sheet. 5) To know the relationships among the groups either for decisions or for future prediction through analysis of these two years financial statements. 6) To know the progress, efficiency, paying capacity of the firm from the interpretation of these two years financial statements.
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Meaning of financial statements: Financial statements are the consolidated and summarized form of business transactions which are pre-pared at the end of each accounting year. These statements reveal the financial information of the business enterprises for a certain period. The financial statements are prepared for ascertainment of results of a business and communicate the accounting information to the users. The financial statement provides answers to the following questions. What is the financial status of the firm on a particular date? How is the firms financial performance over the period? Here for the project the profit and loss a/cs, balance sheet are used for comparative analysis and interpretation of the study.
1) Balance sheet: Balance sheet is the statement of financial position of a business
concern as on specified date. It represents all the assets owned by the firm and liability owed to others. In other words, it contains the various assets, liabilities and owners equity as on particular date. The balance sheet is prepared on the basis of following equation. ASSETS = (A) = EQUITIES (E)
Or Assets = Owners equity + creditors equity Or Assets = (Share capital + Reserves + surplus-Losses) +outside liabilities.
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2) Income statement(Profit and loss a/cs: This statement explains the financial
performance of a business concern for the particular period. It explains the net result of the business operation between two balance sheet dates. The income statement is prepared on the basis of revenue principle, realization principle and also on the basis of matching principle. The realized revenues are matched against its related expired cost. The result is net profit or loss for the year. The equation is as under: Revenues = gains (Expenses + Losses) = net profit or loss. THE FINANCIAL ANALYSIS AND INTERPRETATION. The significance of financial statement not lies in their preparation but in their analysis and interpretation. Therefore analysis and interpretation is an attempt to determine the importance of financial statements. It increases the meaning of accounting data. To provide more understanding in laymans language. That helps to forecast the future earnings, ability to pay dividend policy etc. the analysis and interpretation are 2 terms complementary to each other. For interpretation analysis is necessary. And analysis without interpretation is meaningless. ANALYSIS : A process of grouping or sub grouping of a given data for the purpose of developing some relationships among the groups either for decisions or for future prediction The financial analysis involves the division of facts or information on the basis of some definite plans and to classify them into groups on the basis of some conditions and Babasabpatilfreepptmba.com
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presenting them in most convenient, simple and understandable. Therefore analysis involves the following: 1. Study and understanding of the data presented in the financial statements. 2. Collection of additional information necessary for interpretation. 3. presentation of the financial data in logical and simple manner 4. Grouping and sub grouping of the items given in the financial statements on the basis of common characteristics. 5. Development relationship from one group to another group for further study. 6. The data provided in the financial statements is re arranged and methodically classified for comparisons. For this purpose some standards are established for comparison such as : 1. Past year figures may be used as standard for comparison with the present year figures. 2. Future years estimated figures may be used as standards.
3. Another progressive or successful firms figures may be used as
standards. 4. Over all industry figures may be used as standards for a Comparison. The relationship can also be established from one item of statement to the other item of statement. E.g.Net profit or gross profit to sales, current assets to current liabilities, cost of sales to inventory, fixed assets to capital etc.
INTERPRETATION: To interpret means to put the meaning of data in simple and understandable manner to a layman. Interpretation can be made only after analysis. It is the explanation of
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the conclusion drawn from analysis in simple terms. The interpretation involves the following. 1) Study of relationship among the of items of financial statements. 2) Study of trend over a period or actual data with the standard data used for comparison 3) Conclusions or inferences are put in simple terms for easy and more understanding for a common man. OBJECTIVES OF ANALYSIS AND INTERPRETATION : Following are the main objectives of analysis and interpretation of financial statements. 1. To study the earning capacity of the firm. 2. To understand the state of affairs of the business concern. 3. To study the progress of the firm. 4. To predict the future prospect of the firm. 5. To assess the efficiency of the firm. 6. To determine the firms paying capacity. 7. To measure the financial performance of the firm. USES OR ADVANTAGES OF ANALYSIS OF FINANCIAL STATEMENTS. 1) It helps to determine financial strength or weakness of the business firm. 2) It highlights the significant facts and relations which cannot be understood by mere reading of financial statements. 3) It is based on some logical and scientific method and is useful for decisions. 4) It is useful to understood multidirectional relationships of the various items of financial statements. 5) It minimizes the threat of wrong or delayed decisions. Babasabpatilfreepptmba.com
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6) It helps to evaluate correctness and accuracy of the decisions. Comparative statements Comparative financial statements are those statements which summaries and present related accounting data for number of years. It is an arrangement of the financial statements in such a manner that each element of the financial statement is comparable with same element of the financial statement of another period. Generally the financial statements of two periods are used for comparable study. While pre-paring comparative statements one should keep in mind that the accounting principles, policies should be same. Any material change in such principles policies etc. comparative statements useless. A comparative statement provides the following. 1. Absolute change in amount or figures. 2. Absolute change in percentages. 3. Increase or decrease in figures and percentages.
Advantages of comparative statements. 1. It is helpful for inter period comparison. 2. It is helpful for inter firm comparison. 3. It is useful to study the trends of various elements of financial statements. 4. Types of comparative statements. For the purpose of comparative analysis the financial statements are classified into 2 types namely, 1) Comparative balance sheet. Babasabpatilfreepptmba.com
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2) Comparative income statement.
1)
Comparative balance sheet. Under this technique the balance sheet of two different dates or balance
sheets of one firm to another firm may be used for comparative study. an item or group of item of one balance sheet is compared with the same item or group of item of another balance sheet. The comparative balance sheet is helpful to study the liquidity position, financial status, long term financial position etc. following are the steps for pre-pare comparative balance sheet. I) redraft the balance sheet in vertical form. II) Pre-pare two additional columns one for absolute change and Another for percentage change. III) Study the trend (increase or decrease) and form the Opinions. IV) Interpret the same.
FORMULA FOR CALCULATION OF PERCENTAGE = DIFFERENCE OF AN ELEMENT * 100 PREVOUS YEAR AMOUNT OF AN ELEMENT
Comparative income statements: The comparative income statement is pre-pared to study growth rate in profitability, expenses, cost of goods sold etc. usually two years income statements are compared. For this purpose two additional columns are prepared for recording the absolute change and percentage change. Babasabpatilfreepptmba.com
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COMMON SIZE STATEMENTS. The financial statements are pre-pared with the absolute figures. Reading of absolute figures is not easy for quick grasping or understanding. Therefore they are converted into simple figures. Such as percentages to there totals for easy understandings. In case of balance sheet each item of the asset is expressed to the total assets. And each liability to the total liability. Similarly in case of income statement each item of revenue or expenses is expressed to total sales. When the financial statements of same concern for several years are converted into percentages and presented for the comparative study are called comparative statements. The total size of financial statements is fixed as 100. all the items of statements are expressed as percentage to the total.
PROCEDURE FOR PRE-PARATION OF COMMON SIZE STATEMENTS. 1) In case of balance sheet total assets and total liabilities are considered as 100. 2) Each item of asset is expressed in terms of percentage to the total assets . similarly each liability to total liability. 3) Incase of income statement total sales are treated as 100. 4) Each item of revenue and expenses is expressed as a percentage to the total sales. 5) Study of these percentages to establish relationship. 6) Interpretation of the relationship in simple terms. Mainly there are two types of common size statements. a) common size income statements b) Common size balance sheet. Common size income statements
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Common size income statements are pre-pared to study the proportion of various elements of income statement items to the total sales revenue. The total sales item is considered as 100 and all other items are expressed as a percentage to the total sales. In case of increase in sales tend to increase in the expenses directly Related to sales. This kind of analysis helps to study the operational efficiency and financial performance of the concern. Common size balance sheet. Common size balance sheet means the size of the balance sheet of various years or firms is to brought to a common figure. That is the totals of the assets and liabilities are expressed in terms of percentages. The relationships are established with one item to its respective total and are compared with another years balance sheet. Alternatively capital employed may also be considered as 100 and all other items of the balance sheet are expressed in percentages. This kind of analysis is helpful to study the financial position, liquidity, solvency etc of the concern in various years
COMPARATIVE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 98-99, 99-00. (STATEMENT 1)
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Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 1998-99 (In Lakhs) 7943.56 7943.56 1999-2000 (In Lakhs) 7705.45 7705.45 Absolute increase/decrease in Rs -238.11 -238.11 Absolute increase/decrease in % -2.99% -2.99% -8.4% 5864.92 2078.64 5367.90 2337.55 -497.02 258.91 12.45%
2753.39 673.75
2845.53 507.98
92.14 165.77
3.34% 24.60%
1429.67 755.92
799.81 291.83
-629.86 464.09
-44.05% 61.39%
Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges.
655.54
582.66
-72.88
-11.11%
Profit /loss
100.38
-290.83
-391.21
-38.72%
less: prior period adjustments. Tax, bad debts etc. Net profit/loss
-92.99 7.39
+0.80 -290.03
-92.19 -297.42
-99.13% -4026%
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Particulars A) Net sales Less : cost of goods sold 1999-2000 (In Lakhs) 7705.45 2000-2001 (In Lakhs) 6017.77 Absolute increase/decrease in Rs -1687.68 Absolute increase/decrease in % -21.90% -
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(o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 799.81 291.83 1068.57 -198.81 268.76 -490.64 33.60% -168% 2845.53 507.98 2665.22 1267.38 -180.31 759.4 -6.3% 149% 5367.90 2337.55 4619.93 1397.84 -747.97 -939.71 -13.93% -40% 7705.45 6017.77 -1687.68 -21.90%
582.66
602.19
19.53
3.35
Profit /loss
-290.83
-801.00
-1091.83
375.4%
+0.80 -290.03
-152.65 -953.65
-151.85 663.62
18981% 228.8%
Particulars 2000-2001 2001-2002 Absolute Absolute
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(In Lakhs) A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 1068.57 127.86 -940.71 -88.03% 2665.22 1267.38 3032.36 588.66 367.14 678.72 13.77% 53.55% 4619.93 1397.84 4671.27 2443.7 51.34 1045.86 11.1% 74.81% 6017.77 6017.77 (In Lakhs) 9688.63 2573.66 7114.97 increase/decrease in Rs 3670.86 2573.66 1097.2 increase/decrease in % 61% 100%18.23%
-198.81
-460.8
-261.99
13.17%
602.19
628.55
26.36
4.37%
loss less: prior period adjustments. Tax, bad debts etc. Net profit/loss
-801.00 -152.65 -953.65
-1089.35 -91.40 -1180.75
-288.35 -61.25 -227.1
-35.99% 40.12% 23.81%
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Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 2001-2002 (In Lakhs) 9688.63 2573.66 7114.97 2002-2003 (In Lakhs) 4989.75 4989.75 Absolute increase/decrease in Rs -4698.88 -2125.22 Absolute increase/decrease in % 48.49% -29.86%
4671.27 2443.7
4863.52 126.23
192.25 -2317.47
4.11% 94.83%
3032.36 588.66
2645.98 2519.75
-386.38 1931.09
-12.74% 32.80%
127.86 -460.8
1669.17 -850.58
1541.31 389.78
120% 84.58%
Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges. loss less: prior period adjustments. Tax, bad debts etc. Net profit/loss
628.55
622.26
-6.29
-1.00%
-1089.35 -91.40 -1180.75
-1472.84 9.74 1482.58
383.49 -81.66 301.83
35.20% -89.34 25.56%
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Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 2002-2003 (In Lakhs) 4989.75 4989.75 2003-2004 (In Lakhs) 8565.68 2441.55 6124.13 Absolute increase/decrease in Rs 3575.93 2441.55 1134.38 Absolute increase/decrease in % 71.66% 100% 22.73%
4863.52 126.23
3342.10 2782.03
-1521.42 2655.8
-31.28% 21.03%
2645.98 2519.75
3031.93 249.9
385.95 -2269.85
14.58% -90.08%
1669.17 -850.58
103.71 -146.19
-1565.46 -704.39
-93.78% -82.81%
Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges. loss
622.26
482.67
-139.59
-22.43%
-1472.84 less: prior period adjustments. Tax, bad debts etc. Net profit/loss 9.74 -1482.58
-628.86 +289.88 -338.98
-843.98 280.14 -1143.6
-57.30% 287.6% -77.13%
Page 57
Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 2003-2004 (In Lakhs) 8565.68 2441.55 6124.13 2004-2005 (In Lakhs) 7643.44 566.40 7077.04 Absolute increase/decrease in Rs -922.24 -1875.15 952.91 Absolute increase/decrease in % -10.76% -76.80% 15.55%
3342.10 2782.03
4871.38 2205.66
1529.28 -576.37
45.75% -20.71%
3031.93 249.9
2657.58 451.92
-374.35 202.02
-12.34% 80.84%
103.71
88.69
-15.02%
-14.48%
-146.19
-363.23
-217.04
-148.46%
482.67
421.94
-60.73
-12.58%
-628.86 less: prior period adjustments. Tax, bad debts etc. Net profit/loss
-785.17
156.31
24.85%
+289.88 -338.98
+227.37 -557.80
-62.51 217.82
-21.56 64.25%
Page 58
Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 2004-2005 (In Lakhs) 7643.44 566.40 7077.04 2005-2006 (In Lakhs) 6998.38 6998.38 Absolute increase/decrease in Rs -645.06 -645.06 Absolute increase/decrease in % -8.43% -8.43%
4871.38 2205.66
5666.15 1332.23
794.77 -873.43
36.03% -39.59%
2657.58 451.92
2455.14 1122.91
-202.44 670.99
-7.6% 148.47%
88.69 -363.23
1012.75 110.16
924.06 -253.07
1041.8% -69.67%
Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers,
421.94
460.83
61.11
14.48%
Page 59

other charges. -785.17 loss less: prior period adjustments. Tax, bad debts etc. Net profit/loss -570.99 -214.18 -27.27%
+227.37 -557.80
+218.02 -352.97
-9.35 -204.83
-1.67% -36.72%
Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 2005-2006 (In Lakhs) 6998.38 2006-07 8770.44 1178.00 Absolute increase/decrease in Rs 1772.06 1178.00 Absolute increase/decrease in % 25.32% 100%
6998.38
7592.44
594.06
8.48%
5666.15 1332.23
5260.59 2331.85
-405.56 999.62
-7.15% 75.03%
2455.14 1122.91
2414.4 82.55
-40.74 -1040.36
-1.65% -92.64%
1012.75
634.12
-378.63
-37.38%
110.16
551.57
441.41
400.69%
Page 60

Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges. loss -570.99 less: prior period adjustments. Tax, bad debts etc. Net profit/loss +218.02 -352.97 30.05 +406.65 +436.70 -540.49 188.63 83.73 -94.65% 86.51% 23.72%
460.83
521.52
60.69
13.16%
Particulars A) Net sales Less : cost of goods sold c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. (o.s+purchase2006-07 831873120 117799842 2007-08 888789046 Absolute increase/decrease in Rs 56975926 Absolute increase/decrease in % 6.84% -
714073278
888789046
174715768
24.46%
526022935 188050343
711302079 177486967
185279144 (10563376)
35.22% -5.61%
196269257 (8218914) 63412224 55193310
249046416 (71559449) 125458168 53898719
52777159 63340535 62045944 (1294591)
26.89% 77.6% 97.84% 2.34%
Page 61

Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges. Profit Add: previous year profit. Net profit Less : interest : bad debts Profit before tax Less : fringe benefit tax Profit after tax 43670075 9240858 (34429217) -78.83% 636628 611003 (25625) -4.02% 44306704 44306704 11630861 1779000 9851861 (32675843) 1779000 (3445843) -73.74% 100% -77.76% 52188710 3004600 413020104 50530934 3367785 8263076 (1657776) 363185 (404757028) -3.17% 10.78% -97.99%
INTER PRETATIONS FOR COMPARATIVE INCOME STATEMENTS. FOR 10 YEARS 1) The net sales of K.H.D.C.L.td. are decreasing from 1998-99 to 2000-01 compare to its previous years at the rate of -2.99%, -21.90% respectively. But in 01-02 it was raised by 61%, but again it will be declined in the year 02-03 at the rate of -48.49%. And the in the year 03-04 it was raised by 71.66%, next year 04-05, 05-06 sales was decreased by -10.76%, -8.43% respectively. It was raised in the year 06-07; 07-08 was 25.32%, 6.84%.The sales proportion is not in fix direction it was like zigzag. 2) Manufacturing expenses of K.H.D.C.L.td are decreasing in the year 99-00, 00-01compare to previous years. At the rate of -8.4%, -13.93%. But it was rise at the rate of 4.11% in the year 02-03.for the year 03-04 it was again decreased at the rate of -31.28%.but it was rise in the next year also except the year 06-07 at the rate of -7.15%.It was increase in the years 04-05, 05-06, 07-08 at the rate of 45.75%, 36.03%, 35.22% respectively. 3) Gross profit of K.H.D.C.L.td are rise in the years 99-00 12.45%, 01-02 74.81%, 03-04 21.03%, 06-07 75.03%. Compare to its previous years. And fall in the years 00-01 -40%, 02-03 -94.83%, 04-05 -20.71%, 05-06 -39.59% 07-08 -5.61% Compare to its previous years. Due to rise in manufacturing expenses.
Page 62

4) Operating expenses are rise in the years 99-00, 01-02 , 03-04, 07-08. At the rate of 3.34%, 13.77%, 14.58% 26.89%. Compare to its previous years respectively. and fall in the years 00-01, 02-03, 04-05, 05-06, 06-07 At the rate of -6.3%, -12.74%, -12.34%, -7.6%, -1.65%.Respectively. 5) Operating loss was for all the years but it was declined for the year 03-04, 06-07.due to rise in operating expenses. 6) non-operating incomes are raised in the year00-01,02-03 ,05-06, 07-08 at the rate of 33.60%, 120%, 1041.8%, 97.84%.compare to its previous years due to sale of fixed assets, govt assistance etc and Fall in the year 99-00, 01-02, 03-04, 04-05, 06-07 at -44.05%, -88.03%.-93.78%,-14.48%,-37.38%,due to loss on sale of fixed assets more non operating expenses.
COMPARATIVE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 1998-99 &99-00. (STATEMENT 10)
PARTICULARS current assets Miscellaneous expenses A) Total current assets Less : C current liabilities 1998-99 6451.31 119.53 1999-00 6578.36 119.53 INCREASE/DECREASE IN Rs 127.05 INCREASE/DECREASE IN % 1.96% -
6570.84 -
6697.89 -
127.05 -
1.93% -
Page 63

B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Represented by Share holders net worth. 6570.84 6697.89 127.05 1.93% -
824.63 7595.47
859.99 7557.88
35.36 -37.59
4.28% -4.9%
7877.21
8323.18
446
5.66%
475.27 Less: loss (previous year)
765.30
290.03
61.02%
7395.47 Capital employed
7557.88
-37.59
-4.9%
PARTICULARS current assets 1999-00 6578.36 00-01. 5320.88 INCREASE/DECREASE IN Rs -1257.48 INCREASE/DECREASE IN % -19.11%
Page 64

Miscellaneous expenses A) Total current assets Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Represented by Share holders net worth. 6697.89 5440.41 -1257.48 -18.77% 119.53 119.53 -
6697.89 -
5440.41 -
-1257.48 -
-18.77% -
859.99 7557.88
854.07 6294.48
-5.92 -1263.4
-0.68% -16.71%
8323.18
8013.43
-309.75
-3.72%
1718.95
953.65
124.61%
6294.48
-1263.4
-16.71%
PARTICULARS 00-01. 01-02 INCREASE/DECREASE IN Rs INCREASE/DECREASE IN %
Page 65

current assets Miscellaneous expenses A) Total current assets Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Represented by Share holders net worth. 5320.88 119.53 5559.43 119.53 238.55 4.48% -
5440.41 -
5678.96 -
238.55 -
4.38% -
5440.41
5678.96
238.55
4.38%
854.07 6294.48
851.36 6530.32
-2.71 235.84
-0.31% 3.74%
8013.43
9430.02
1416.59
17.67%
2899.70
1180.75
68.69%
6530.32
235.84
3.74%
Page 66

PARTICULARS current assets Miscellaneous expenses A) Total current assets Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Represented by Share holders net worth. 01-02 5559.43 119.53 02-03 4046.36 119.53 INCREASE/DECREASE IN Rs -1513.07 INCREASE/DECREASE IN % -27.21% -
5678.96 -
4165.89 -
-1513.07 -
-27.21% -
5678.96
4165.89
-1513.07
-27.21%
851.36 6530.32
837.99 5003.88
-13.37 -1526.44
-1.57% -23.37%
9430.02
9386.15
-43.87
-0.46%
4382.27
1482.57
51.12%
-1526.44 6530.32 Capital employed 5003.88
-23.37%
Page 67

PARTICULARS current assets Miscellaneous expenses A) Total current assets Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Represented by Share holders net worth. 02-03 4046.36 119.53 03-04 2919.71 119.53 INCREASE/DECREASE IN Rs -1126.65 INCREASE/DECREASE IN % -27.84% -
4165.89 -
3039.24 -
-1126.65 -
-27.84% -
4165.89
3039.24
-1126.65
-27.84%
837.99
808.93
-29.06
-3.46%
5003.88 9386.15
3848.17 8569.43
-1155.71
-23.09% -8.70%
-816.72
4721.26
338.99
7.73%
-1155.71 5003.88 Capital employed 3848.17
-23.09%
Page 68
PARTICULARS current assets Miscellaneous expenses A) Total current assets Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Represented by Share holders net worth. 03-04 2919.71 119.53 04-05 2797.31 543.89 INCREASE/DECREASE IN Rs -122.4 424.36 INCREASE/DECREASE IN % -4.19% 35.0%
3039.24 -
3341.2 -
301.96 -
9.9% -
3039.24
3341.2
301.96
9.9%
808.93
798.45
-10.48
--1.29%
3848.17 8569.43
4139.64 9418.70
291.47 849.27
7.57% 9.91%
4721.26 Less: loss (previous year) 3848.17 Capital employed
5279.06
-557.8
11.81%
4139.64
291.47
7.57%
Page 69
PARTICULARS current assets Miscellaneous expenses A) Total current assets Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Represented by Share holders net worth. 04-05 2797.31 543.89 05-06 7075.38 774.92 INCREASE/DECREASE IN Rs 4278.07 231.03 INCREASE/DECREASE IN % 152.93% 42.47%
3341.2 -
7850.3 -
4509.1 -
134.95 -
3341.2
7850.3
4509.1
134.9%
798.45
849.49
51.04
6.39%
4139.64 9418.70
8699.79 14331.82
4560.15 4913.12
110.15% 52.16%
6.68% 5279.06 Less: loss (previous year) 4139.64 Capital employed 8699.79 4560.15 110.15% 5632.03 352.97
Page 70
PARTICULARS current assets Miscellaneous expenses A) Total current assets Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Represented by Share holders net worth. 05-06 7075.38 774.92 2006-07 8056.58 466.90 INCREASE/DECREASE IN Rs 981.2 -308.02 INCREASE/DECREASE IN % 13.86% -39.74%
7850.3 -
8529.74 -
679.71 -
8.65% -
7850.3
8529.74
679.71
8.65%
849.49
814.43
-35.06
-4.12% 7.40%
8699.79 14331.82
9344.17 14539.50
644.38 207.68 1.44%
5195.33
-436.7
-7.7%
7.40% 8699.79 Capital employed 9344.17 644.38
Page 71
PARTICULARS current assets Miscellaneous expenses A) Total current assets Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Share capital 2006-07 805658393 46689852 2007-08 919580314 27841206 INCREASE/DECREASE IN Rs 113921921 18848646 INCREASE/DECREASE IN % 14% 40%
852348245 -
947421520 -
95073275 -
11% -
852348245
947421520
95073275
11%
82068782
80006106
(2062676)
2.5%
934417027 1453950330
1027427536 1537720071
93010509 83769741
9.9% 5.7%
519533303 Less: loss (previous year)
510292445
(9240858)
-1.77%
Page 72
Capital employed
934417027
1027427536
93010599
9.9%
INTER PRETATIONS FOR COMPARATIVE BALANCE SHEET FOR 10 YEARS 1) Current assets are in the year 99-00 compare to 98-99 at the rate of 4.48% .but it was goes on decreasing from 00-01 to 03-04. And again it was raised in the from 04-05 to 07-08. compare to its previous years. 2) Pre-paid expenditure are same from 98-99 to 03-04 i.e. 119.53%.it was rise in the years 0405 35.0%, 05-06 42.47%, 07-08 40%, And rise in the year 06-07 -39.74%. These are pre-paid for easily getting raw-materials etc. 3) The total current assets are raised in all the years except 99-00, 03-04 4) Fixed assets are raised in the year 99-00, 05-06, compare to its previous years due to purchase of fixed assets like buildings weaving machines, land etc. and declined in all other years due to depreciation and sale of old assets.
Page 73

5) Net worth of K.H.D.C.L.td was rise in all the years except 00-01, 02-03, and 03-04. , because previous year loss, decrease in deferred government grant and up to 02-03 share capital is not raised. 6) Accumulated loss is for all the years but it was declined in the years of06-07, 07-08. Due to company earning the profits after 7 years and certain portion of accumulated loss was deducted in these years. 7) capital employed was rise in all the years except 99-00, 00-01, 02-03, 03-04. due to decrease in reserve and surplus, and government grant, not rising share capital.
COMMON SIZE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 1998-99 &99-00. (STATEMENT 19)
PARTICULARS current assets Miscellaneous expenses A) Total current assets Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets Rs 6451.31 119.53 1998-99 % 87.97% 1.57% Rs 6578.36 119.53 1999-00 % 87% 1.7%
6570.84 -
89.54% -
6697.89 -
88.7% -
6570.84
89.54%
6697.89
88.7%
824.63
10.46%
859.99
11.3%
Page 74

7595.47 E) capital employed E) =(C+D) Represented by Share holders net worth. 100% 7557.88 100%
7877.21
106.42%
8323.18
110.2%
6.42%
765.30
10.2%
100%
7557.88
100%
PARTICULARS current assets Miscellaneous expenses A) Total current assets Rs 6578.36 119.53 1999-00 % 87% 1.7% Rs 5320.88 119.53 00-01. % 84.55% 1.89%
6697.89 -
88.7% -
5440.41 -
86.44% -
Less : C current liabilities B) Total current liabilities
Page 75

-
Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D)
6697.89
88.7%
5440.41
86.44%
859.99 7557.88
11.3% 100%
854.07 6294.48
13.56% 100%
8323.18 Represented by Share holders net worth.
110.2%
8013.43
127.30%
10.2%
1718.95
27.30%
100%
6294.48
100%
PARTICULARS current assets Miscellaneous expenses A) Total current assets Rs 5320.88 119.53 00-01. % 84.55% 1.89% Rs 5559.43 119.53 01-02 % 85.14% 1.83%
5440.41
86.44%
5678.96
86.97%
Page 76

Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Represented by Share holders net worth. -
5440.41
86.44%
5678.96
86.97%
854.07 6294.48
13.56% 100%
851.36 6530.32
13.03% 100%
8013.43
127.30%
9430.02
144.40%
Less: loss (previous year)
1718.95
27.30%
2899.70
44.40%
100%
6530.32
100%
PARTICULARS current assets Rs 5559.43 01-02 % 85.14% Rs 4046.36 02-03 % 80.88%
Page 77

119.53 Miscellaneous expenses A) Total current assets 5678.96 Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) 9430.02 Represented by Share holders net worth. 144.40% 9386.15 187.57% 5678.96 86.97% 4165.89 83.26% 86.97% 4165.89 83.26% 1.83% 119.53 2.38%
851.36 6530.32
13.03% 100%
837.99 5003.88
16.74% 100%
44.40%
4382.27
87.57%
100% 6530.32 Capital employed 100% 5003.88
Page 78

PARTICULARS current assets Miscellaneous expenses A) Total current assets Rs 4046.36 119.53 02-03 % 80.88% 2.38% Rs 2919.71 119.53 03-04 % 75.87% 3.11%
4165.89 -
83.26% -
3039.24 -
78.98% -
Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets
4165.89
83.26%
3039.24
78.98%
837.99
16.74% 100%
808.93
21.02%
E) capital employed E) =(C+D) Represented by Share holders net worth.
5003.88 9386.15 187.57%
3848.17 100% 8569.43 222.68%
Less: loss (previous year)
4382.27
87.57%
4721.26
122.68%
100% 5003.88 Capital employed 3848.17 100%
COMMON SIZE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 03-04 &04-05.
Page 79

(STATEMENT 24)
PARTICULARS current assets Miscellaneous expenses A) Total current assets Rs 2919.71 119.53 03-04 % 75.87% 3.11% Rs 2797.31 543.89 04-05 % 67.59% 13.13%
3039.24 -
78.98% -
3341.2 -
80.72% -
3039.24
78.98%
3341.2
80.72%
808.93
21.02%
798.45
19.28% 100%
3848.17 E) capital employed E) =(C+D) 8569.43 222.68% Represented by Share holders net worth. 100%
4139.64 9418.70 227.52%
4721.26 Less: loss (previous year) 3848.17
122.68%
5279.06
127.52%
4139.64 100% 100%
Capital employed
Page 80
PARTICULARS current assets Miscellaneous expenses 3341.2 A) Total current assets 80.72% 7850.3 90.24% Rs 2797.31 543.89 04-05 % 67.59% 13.13% Rs 7075.38 774.92 05-06 % 81.34% 8.90%
3341.2
80.72%
7850.3
90.24%
798.45
19.28% 100%
849.49
9.76% 100%
4139.64 E) capital employed E) =(C+D) 9418.70 Represented by Share holders net worth. 227.52%
8699.79 14331.82 164.73%
64.73% 5279.06 Less: loss (previous year) 100% 4139.64 100% Capital employed 8699.79 127.52% 5632.03
Page 81
COMMON SIZE STATEMENT OF K.H.D.C.L.td. FOR THE YEAR 05-06,06-07 (STATEMENT 26)
PARTICULARS current assets Miscellaneous expenses A) Total current assets Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Represented by Share holders net worth. Rs 7075.38 774.92 05-06 % 81.33% 8.9% Rs 8056.58 466.90 2006-07 % 86.29% 4.99%
7850.3 -
90.23% -
8529.74 -
91.28% -
7850.3
90.23%
8529.74
91.28%
849.49
9.76%
814.43
8.71%
8699.79 14331.82
100% +164.73%
9344.17 14539.50
100% +155.59
5632.03 Less: loss (previous year) 8699.79 Capital employed
-64.73%
5195.33
-55.59%
100%
9344.17
100%
Page 82
Common size balance sheet of K.H.D.C.L.td for the year .2006-07 ,2007-08. (STATEMENT 27)
PARTICULARS Rs current assets Miscellaneous expenses A) Total current assets Less : C current liabilities B) Total current liabilities Working capital C) = (A-B) D) Fixed assets E) capital employed E) =(C+D) Share capital 805658393 46689852 2006-07 Percentage 86.22% 4.99% Rs 919580314 27841206 2007-08 Percentage 89.50% 2.70
852348245 -
91.21% -
947421520 -
92.2% -
852348245
91.21%
947421520
92.2%
82068782
8.78 100%
80006106
7.78%
934417027 1453950330 155.
1027427536 1537720071
100% 149.66%
519533303 Less: loss (previous year)
55.59%
510292445
49.66%
Page 83
Capital employed
934417027
100%
1027427536
100%
OR
Common size balance sheet of K.H.D.C.L.td for the year 2007-08. (STATEMENT 28)
Liabilities Rs Particulars A) share holders funds i) share capital ii)Reserve & surplus 27655638 iii) Deferred government grant B)Loan funds 496413367 i) Secured loans 180027891 ii) unsecured loans TOTAL 1453950330 100 1537720071 100 TOTAL 1453950330 100 1537720071 100 12.14 185986383 12.09 34.4 511532656 33.28 E) Profit & loss A/c 519533303 35.73 510292445 33.19 1.90 26221647 1.70 C) Net current assets D)Miscellaneous expenses 805658393 46689852 55.41 3.21 919580314 27841206 59.80 1.81 443820700 306032734 % 2007 Rs % Particulars Application of the funds. A) Fixed assets B) investments 81442782 626000 2008 ASSETS Rs % 2007 Rs % 2008
30.52 21.04
443820700 370158685
28.86 24.07
5.61 0.04
79380106 626000
5.16 0.04
Page 84
INTER PRETATIONS FOR COMMON SIZE BALANCE SHEET FOR 10 YEARS
1) For the year 98-99 total current assets are 89.54%, fixed assets are 10.46% and share
holders net worth was 106.42%, and accumulated loss was 6.42% .accumulated loss means previous years loss
2) For the year 99-00 capital employed wads raised Rs7557.88lakhs. But accumulated loss
raised by 10.4% compare to 98-99, fixed assets are raised 11.3% due to purchase of fixed assets. Current assets are decreased by 88.7% due to decrease in purchase of inventories, delay in payment by debtors.
3) For the year 00-01 total capital employed was decreased by Rs 6294.48 due to total
Current assets are decreased by 86.44% because delay in payment of loans and advances by debtors, etc similarly fixed assets are raised by 13.56% .accumulated loss was raised by 27.30% due to previous and current year loss.
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4) For the year 01-02 Current assets are raised by 85.14% because increase in purchase of
inventory, payment made by debtors, rise in cash and bank balance etc. the value of fixed assets are decreased by 13.03% due to depreciation of assets. The capital employed was raised Rs 6530.32 due to rise in government grant. Accumulated loss was raised by 44.40% because of last 2 years loss including current year loss.
5) For the year 02-03 fixed assets are raised by 16.74% due to purchase of land buildings,
other fixed assets. Accumulated loss was raised by 87.57% due to previous year loss. The capital employed was decreased by Rs 5003.88 due to rise in loss and fall in reserve and surplus
6) For the year 03-04 Current assets are decreased by 78.98%. Fixed assets are
raised by 21.02%. The capital employed was decreased by Rs 3848.17 because of Accumulated loss was raised by 122.68%.
7) For the year 04-05 Current assets are raised by 80.72% due to raise in pre-paid expenses.
Fixed assets are decreased by 19.28% due to depreciation. The Share holders net worth was raised by 9418.70 due to increase in share capitals, reserve and surplus and also deferred government grant. Accumulated loss was raised by 5279.06
8) For the year 05-06 Current assets are raised by 90.24% due to purchase is more of stock
raw-materials. Fixed assets are decreased by 9.76% due to sale of fixed assets and depreciation. Share holders net worth was raised by 14331.82 due to share capitals and
Page 86

deferred government grant raise in short and long term loans. Accumulated loss was decreased by 64.73%
9) For the year 06-07 Current assets are raised by 91.28%.because increase in stock,
advance payment to debtors. Fixed assets are decreased by 8.71%due to depreciation. The capital employed was raised by 9344.17 due to rise in deferred government grant, current assets. Accumulated loss was decreased by -55.59% due to current year profit.
10) For the year 07-08 Current assets are raised by 92.2%, Fixed assets are decreased by
7.78% due to depreciation Accumulated loss was decreased by 49.66% due to current year profit
COMMON SIZE INCOME STATEMENT FOR THE YEAR 1998-99. (STATEMENT 29)
Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses 1998-99(In Lakhs) Rs 7943.56 7943.56 % 100% 1999-2000(In Lakhs) 7705.45 7705.45 100% -
5864.92 2078.64
-73.83% +26.16%
5367.90 2337.55
-69.66% +30.33%
2753.39
-34.06%
2845.53
-38.92%
Page 87

673.75 Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 1429.67 +17.07% 799.81 +11.37% -8.48% 507.98 -7.59%
755.92
-9.5
291.83
-4.78%
Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges. Profit /loss
655.54
-8.25%
582.66
-9.23%
100.38
+1.26%
-290.83
-4.77%
-92.99 7.39
-1.17 +0.09
+0.80 -290.03
+0.01% -4.76%
COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR (STATEMENT 30)
Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit 1999-2000(In Lakhs) Rs 7705.45 7705.45 % 100% 2000-2001(In Lakhs) Rs 6017.77 6017.77 % 100% -
99-00, 00-01.
5367.90 2337.55
-69.66% +30.33%
4619.93 1397.84
-76.77 +23.22
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Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc.
2845.53 507.98
-38.92% -7.59%
2665.22 1267.38
-44.28 -21.06
799.81
+11.37%
1068.57
+17.75%
291.83 Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges. Profit /loss less: prior period adjustments. Tax, bad debts etc. Net profit/loss
-4.78%
-198.81
-3.30%
582.66
-9.23%
602.19
-10%
-290.83 +0.80 -290.03
-4.77% +0.01% -4.76%
-801.00 -152.65 -953.65
-13.3% -2.53% -15.84%
COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 00-01, 01-02. (STATEMENT 31)
Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed 2000-2001(In Lakhs) Rs 6017.77 6017.77 % 100% Rs 9688.63 2573.66 7114.97 2001-2002(In Lakhs) % 100% -26.56% 73.43%
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Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 2665.22 -44.28 3032.36 -31.29%
4619.93 1397.84
-76.77 +23.22
4671.27 2443.7
-48.21% 25.22%
1267.38
-21.06
588.66
-6.07%
1068.57
+17.75%
127.86
+1.31%
-198.81
-3.30%
-460.8
-4.75%
Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges. Loss less: prior period adjustments. Tax, bad debts etc. Net profit/loss
602.19
-10%
628.55
-6.48%
-801.00 -152.65 -953.65
-13.3% -2.53% -15.84%
-1089.35 -91.40 -1180.75
-11.24% -0.94% -12.18%
Page 90
Page 91

Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 4671.27 2443.7 -48.21% 25.22% 4863.52 126.23 -97.47% 2.53% 2001-2002(In Lakhs) Rs 9688.63 2573.66 7114.97 % 100% -26.56% 73.43% 2002-2003(In Lakhs) Rs 4989.75 4989.75 % 100% -
3032.36 588.66
-31.29% -6.07%
2645.98 2519.75
-53.02% -50.49%
127.86
+1.31%
1669.17
+33.45%
-460.8
-4.75%
-850.58
-17.04%
628.55
-6.48%
622.26
-12.46%
-1089.35 less: prior period adjustments. Tax, bad debts etc. Net profit/loss -91.40 -1180.75
-11.24% -0.94% -12.18%
-1472.84 9.74 1482.58
-29.51% -0.19% -29.71%
Page 92
Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Rs 4989.75 4989.75 2002-2003(In Lakhs) % 100% Rs 8565.68 2441.55 6124.13 2003-2004(In Lakhs) % 100% -28.50% 71.50%
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Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc.
4863.52 126.23
-97.47% 2.53%
3342.10 2782.03
-39.01% 32.47%
2645.98 2519.75
-53.02% -50.49%
3031.93 249.9
-35.39% -2.91%
1669.17 -850.58
+33.45% -17.04%
103.71 -146.19
+1.21% -1.70%
Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges. loss less: prior period adjustments. Tax, bad debts etc. Net profit/loss
622.26
-12.46%
482.67
-5.63%
-1472.84 9.74 -1482.58
-29.51% -0.19% -29.71%
-628.86 +289.88 -338.98
-7.34% +3.38% -3.95%
Particulars 2003-2004(In Lakhs) Rs % 2004-2005(In Lakhs) Rs %
Page 94

A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 8565.68 2441.55 6124.13 100% -28.50% 71.50% 7643.44 566.40 7077.04 100% -7.41% 92.59%
3342.10 2782.03
-39.01% 32.47%
4871.38 2205.66
-63.73% 28.85%
3031.93 249.9
-35.39% -2.91%
2657.58 451.92
-34.76% -5.91%
103.71
+1.21%
88.69
+1.16%
-146.19 Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges. loss less: prior period adjustments. Tax, bad debts etc. Net profit/loss -628.86 +289.88 -338.98 482.67
-1.70% -5.63%
-363.23 421.94
-4.75% -5.51%
-7.34% +3.38% -3.95%
-785.17 +227.37 -557.80
-10.27% +2.97% -7.29%
Page 95

Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 2004-2005(In Lakhs) Rs 7643.44 566.40 7077.04 % 100% -7.41% 92.59% 2005-2006(In Lakhs) Rs 6998.38 6998.38 % 100% -
4871.38 2205.66
-63.73% 28.85%
5666.15 1332.23
80.96% 19.04%
2657.58 451.92
-34.76% -5.91%
2455.14 1122.91
-35.13% -16.04%
88.69
+1.16%
1012.75
+14.47%
-363.23
-4.75%
110.16
-1.57%
421.94
-5.51%
460.83
-6.58%
-785.17
-10.27%
-570.99
-8.15%
+227.37 -557.80
+2.97% -7.29%
+218.02 -352.97
+3.11% -5.04%
Page 96

COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 05-06,06-07 (STATEMENT 36)
Particulars A) Net sales Less : cost of goods sold (o.s+purchase-c.s) Material consumed Less: manufacturing expenses(cost of production) Gross profit Less : operating expenses 1) administration expenses 2) selling & distribution expenses Operating loss Add : non operating income (Mkt assistance under deendayal scheme, IHDS, Subsidy, other income, profit on sale of assets etc. 2005-2006(In Lakhs) Rs 6998.38 6998.38 5666.15 1332.23 80.96% 19.04% % 100% 7592.44 5260.59 2331.85 -63.23 22.60 2006-07( In Lakhs) Rs 8770.44 1178.00 % 100 -14.16 85.83
2455.14 1122.91
-35.13% -16.04%
2414.4 82.55
-23.59 -0.98
1012.75
+14.47%
634.12
7.62
110.16 Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges. 460.83
-1.57% -6.58%
551.57 521.52
6.63
-6.27 Loss/ profit less: prior period adjustments. Tax, bad debts etc. Net profit/loss -570.99 +218.02 -352.97 -8.15% +3.11% -5.04% 30.05 +406.65 +436.70 0.34% 4.63% 4.97
Page 97

COMMON SIZE INCOME STATEMENT OF K.H.D.C.L.td. 2006-07, 2007-08. (STATEMENT 37)
Less : non operating expenses. Loss on sale of fixed assets, modernization assistance to weavers, other charges. Profit Add: previous year profit. Net profit Less : interest bad debts Profit before tax 636628 Less : fringe benefit tax 43670075 Profit after tax 4.97 9240858 1.03% 0.07 611003 0.06 44306704 5.32 1779000 9851861 0.20 1.10
52188710 3004600 413020104 44306704
6.27 0.36 49.64 5.32
50530934 3367785 8263076 11630861
5.68 0.37 0.92 1.30
Page 98
INTERPRETATIONS OF COMMON SIZE INCOME STATEMENT OF K.H.D.C.L.td. 1) For the year 98-99 the net profit was 7.39 lakhs. Means out of 100% net profit was 0.093%. Because the cost of production was 73.83% and operating expenses are 34.66% , non operating incomes are not increased up to the mark. Previous year loss and tax was 1.17%. 2) Year 99-00 it was beginning for getting the loss continuously for 7 years and this year the loss was -4.76% out of 100% this year sales are declined compare to 98-99. But operating expenses are raised by -38.92% and operating loss was -7.59%. It was low compare to 98-99 because manufacturing expenses are decreased by -69.66%. Gross profit was raised by +30.33%. This year positive of prior period adjustments of +0.01% due to tax returns, recovery of bad debts etc. 3) For the year 00-01 net sales are declined -21.90%. But manufacturing expenses are raised by-76.77 which affects to decline the gross profit at rate of -40%. Operating expenses are also raised to total sales at the rate of -44.28. Therefore operating loss was -21.06 of its total sales. Non-operating incomes are +17.75% of its total sales, due to market assistance, IHDS Subsidy, other income, profit on sale of assets etc. loss for this year was -15.84%. 4) Year 01-02 net sales are raised, due to market assistance provided by the government. Operating expenses are declined due to decrease in Manufacturing expenses and operating expenses to its total sales. Non-operating income is only +1.31% of its total sales because loss on sale of fixed assets, non-recovery of bad debts etc.net loss were -12.18% of its total sales. 5) 02-03 gross profit was only 2.53% of its total sales due to rise in manufacturing expenses. Very low. Operating loss was-50.49% of its total sales due to rise in operating expenses. Nonoperating incomes are+33.45% of its total sales due to profit on sale of fixed assets etc. -29.71% Babasabpatilfreepptmba.com
Page 99

were net loss of its total sales. Because sales are low, manufacturing expenses, operating expense are more. 6) 03-04 manufacturing expenses are decreased because rise in sales. Therefore gross profit was also more, operating expenses are decline to its total sales but not up to the mark, because company this year is also in loss. Non operating income and expenses both are decline for the years. +3.38% was prior adjustments amount for company and net loss was just -3.95% of its total sales. 7) For the year 04-05 manufacturing expenses are raised to its total sales. Therefore gross profit was just 28.85% of its total sales. Operating loss was -5.91% raised to its total sales due to rise in operating expenses.+2.97% was prior adjustments amount and -7.29% net loss to its total sales, due to raise in manufacturing, operating expenses. 8) For the year 05-06 manufacturing expenses are raised at80.96% to its total sales. Therefore gross profit was reduced. Non-operating income was raised due to subsidy, sale of fixed assets etc. -5.04%was net loss this year also company gets +3.11% prior adjustment money. 9) After the long period the K.H.D.C.L.td. was earning the profit for the year 06-07 in this year company gets the net profit of 5.32% because in this year due to reduce in manufacturing expenses, and gross profit was raised 22.60to its total sales. Operating expenses are in control, but not up to the mark, because this year also operating loss of-0.98% and non-operating income is more than operating expenses. this year a profit of 0.36 due to bad debts recovered, prior period adjustments the company gets the amount of 4.63%which also a cause to earn the profit for 06-07at rate of 4.97% to its total sales. 10) For the year 07-08 profit was raised but low compare to the previous year i.e. only 1.03% in this year operating expenses. Manufacturing expenses are raised; therefore gross profit was decreased by19.96%. and raise in operating expenses operating loss was-8.05% to its total sales. This year non-operating income was 14.11% to its total income because prior period adjustments, government grant etc. this year non-operating expenses are low because recovery of bad debts, decrease in loss of sale of fixed assets etc.
Page 100
Graphical representation.(Rs in lakhs) 1) The capital employed of K.H.D.C.L.td. for 10 years was like a zigzag after 7 years it was increasing rate. CAPITAL EMPLOYED OF K.H.D.C.L.td
CAPITAL EMPLOYED 12000 10000 8000 6000 4000 2000 0 1 YEARS 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
7395.47 7557.88 6294.48 6530.32 5003.88 3848.17 3786.64 8699.79 9344.17 10274.27
CHART 1 2) The accumulated loss of K.H.D.C.L.td. goes on increasing rate up to 2005-06 then it start decreasing for next years but not up to the mark. ACCUMULATED LOSS OF K.H.D.C.L.td
ACCUMULATED LOSS 6000 5000 4000 3000 2000 1000 0 YEARS 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
YEARS 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
ACCUMULATED LOSS
475.27 765.3 1718.95 2899.7 4382.27 4721.26 5279.06 5632.03 5195.33 5102.93
Babasabpatilfreepptmba.com YEARS
Page 101
CHART 2
3) K.H.D.C.L.td was in loss from last7 years the profit was raised on 06-07bu the profit declined in 07-08.
N E T P R O F IT O R L O S S O F K .H .D .C .L td
1000 500 NET PROFIT OR LOSS 0 -5 0 0 -1 0 0 0 -1 5 0 0 -2 0 0 0 YEA R S 99 00 01 02 03 04 05 06 07 08 1 9 9 8 -9 9 1 9 9 9 -0 0 2 0 0 0 -0 1 2 0 0 1 -0 2 2 0 0 2 -0 3 2 0 0 3 -0 4 2 0 0 4 -0 5 2 0 0 5 -0 6 2 0 0 6 -0 7 2 0 0 7 -0 8
YEARS 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
PROFIT /LOSS 7.39 -290.03 -953.65 -1180.75 -1482.58 -338.98 -557.8 -352.97 436.7 92.41
CHART 3
4) The sales of K.H.D.C.L.td. was raised in high rate in the year 01-02.
Page 102

SALES OF K.H.D.C.L.td.
12000 1998-99 10000 8000 SALES 6000 4000 2000 0 YEARS YEARS 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
YEARS 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
SALES 7943.56 7705.45 6017.77 9688.63 4989.75 8565.68 7643.44 6998.38 8770.44 9481.09
CHART 4
5) Administration expenses of K.H.D.C.L.td was on an average of 1868lakhs.and more than that.

ADMINISTRATION EXPENSES OF K.H.D.C.L.td.
ADMINISTRATION EXPENSES 2500 1998-99 2000 1500 1000 500 0 YEARS YEARS 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
ADMINISTRATION EXPENSES
YEARS
1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
1897.09 1908.85 1876.39 1986.12 2255.13 2248.9 2142.81 1995.94 1868.41 2367.71
CHART 5
Page 103
6) Fixed assets of K.H.D.C.L.td. was raised at very high rate in the year 99-00.but for the year 07-08 it was very low rate of fixed assets.
FIXED ASSETS OF K.H.D.C.L.td.
870 860 850 840 830 820 810 800 790 780 770 760 YEARS YEARS 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
YEARS 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
FIXED ASSETS 824.63 859.99 854.07 851.36 837.99 808.93 798.45 849.49 820.69 800.06
FIXED ASSETS
CHART 6
7) Net current assets of K.H.D.C.L.td was decreased from the year 99-00 to 04-05. raised from05-06to 07-08.
Page 104

N E T C U R R E N T AS S E TS O F K .H .D .C .L.t d .
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 YE AR S YEARS
YEARS NET CURRENT ASSETS
1 9 9 8 -9 9 1 9 9 9 -0 0 2 0 0 0 -0 1 2 0 0 1 -0 2 2 0 0 2 -0 3 2 0 0 3 -0 4 2 0 0 4 -0 5 2 0 0 5 -0 6 2 0 0 6 -0 7 2 0 0 7 -0 8
1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
6451.31 6578.36 5320.88 5559.43 4046.36 2919.71 2797.31 7075.38 8056.58 9195.8
NET CURRENT ASSETS
CHART 7
8) Revenue from other sources are raised from year to year of production of K.H.D.C.L.td was r
REVENUE FROM OTHER SOURCESOF K.H.D.C.L.td
1200 revenue from other sources 1000 800 600 400 200 0 YEARS years 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
YEARS 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Revenue from other sources 106.69 123.4 120.42 127.86 122.75 103.71 88.69 475.38 634.12 1051.6
CHART 8
Page 105
9) Cost of production of K.H.D.C.L.td. are as below with an average of 3342.1 lakhs

COST OF PRODUCTION OF K.H.D.C.L.td.
8000 COST OF PRODUCTION 7000 6000 5000 4000 3000 2000 1000 0 Y EA RS YEARS 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
YEARS 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
COST OF PRODUCTION 5864.92 5367.9 4619.93 4671.27 4863.52 3342.1 4871.38 5666.15 5260.59 7113.15
CHART 9
Page 106
FINDINGS 1) Companys manufacturing expenses, Administration and selling expenses are not well controlled therefore out of 10 years, many years company in operating loss. 2) Accumulated loss is increased by every year. Because the company does not earn the profit to recover the previous year loss therefore it was raised every year. 3) The major source of income to company from Karnataka vidya vikas yojana because 80% of goods i.e. drill cloth sold to Karnataka Primary Education Board, for its Government school childrens uniforms .etc. 4) K.H.D.C.L.td. was not allocating its resources properly, for it operational activities there for K.H.D.C.L.td not earns well profit. 5) Increase in cost of production due to raise in the cost of raw- material, lack of supply of materials and due to competition K.H.D.C.L.td was facing the problem of adequate raw-material 6) Some products which are not produced by power looms like rib bed sheets, multi thread design, carpets.
7) Value addition can be made to hand loom products. And durability of goods
is more comparing to power looms. The K.H.D.C.L.td is not profit motive organization. The main objective of K.H.D.C.L.td is to support the weavers by providing the employment opportunities and social well fare to the weavers. Therefore weavers production efficiency is not being up to the mark
Page 107
SUGGESTIONS 1) 2) K.H.D.C.L.td operating loss can be reduced by establishing the production, quality control lab, show rooms in very nearer places. Some products like rib bed sheets, multi thread design which is not produced by power looms or other competitors. K.H.D.C.L.td CAN concentrate on producing and selling of those products, which helps raises the sales, profits. Efficient utilization of Weavers can be made by setting the production standards, which is help the K.H.D.C.L.td, to support as well as increase efficiency of the workers.
3)
Page 108
CONCLUSION By analyzing the topic of ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td. I conclude that the company is having raising operating and manufacturing expenses which affects the company to earn the handsome profits. If the K.H.D.C.L.td control the manufacturing and operating expenses, increase in production, adopting the modern marketing techniques, the K.H.D.C.L.td. earn the profits vey well with recovering previous years loss. This project report helped me to get the knowledge on to control over the operating and non-operating expenses for better maintenance of the company..
Page 109
Financial Management By M.L.Guledgudd
Page 110
KARNATAKA HANDLOOM DEVELOPMENT CORPORATION LIMTED BALANCE SHEET AND PROFIT AND LOSS STATEMENTS
Page 111
Particulars
Funds employed own funds.
98-99
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
Share capital Reserve surplus Deferred government grant Sub total (i)
1572.21 440.11
1572.21 454.46
1572.21 451.50
1572.21 462.47
1572.21 459.51
4438.2 1 446.11
4438.2 1 935.76
4438.21 3158.50 288.29
4438.21 3060.32 276.56
4438.21 3701.59 262.21
2012.32
2026..67
2023.7 1 3014.9 5 2884.7 7 5989.72 8013.4 3 847.60 6.47 5320.88 119.53 1718.95 8013.43 185.23 6017.77 120.42 948.15 7086.34 4619.93 1876.39 788.83 553.98 48.21 7887.34 -801.00 -152.65 -953.65
2034.6 8 3206.2 0 4189.1 4 7395.3 4 9430.0 2 844.89 6.47 5559.43 119.53 2899.70 9430.02 -984.55 9688.63 127.86 -2573.66 7242.83 4671.27 1986.12 1046.24 584.59 43.96 8332.18 -1089.35 -91.40 -1180.75
2031.7 2 3311.0 1 4043.4 2 7354.4 3 9386.1 5 831.52 6.47 4046.36 119.53 4382.27 9386.15 -2470.08 4989.7 5 122.75 1546.4 2 6658.92 4863.52 2255.13 390.85 577.69 44.57 8131.76 -1472.84 -9.74 -1482.58
4884.3 2 435.81 3249.3 0 3685.1 1 8569.4 3 802.67 6.26 2919.7 1 119.53 4721.2 6 8569.4 3 43.53 8565.68 103.71 -2441.55 6227.84 3342.10 2248.90 783.83 440.17 42.50 6856.70 -628.86 289.88 -338.98
5373.9 7 1129.9 6 2914.7 7 4044.7 3 9418.7 0 792.19 6.26 2797.3 1 543.89 5279.06 9418.7 1 -448.97 7643.44 88.69 -566.40 7165.73 4871.38 2142.81 514.77 382.44 39.50 7950.90 -785.17 227.37 -557.80
7885.00
7775.09
8402.01
Loan funds Long term loan Short term loan Sub total (ii) Total(i+ii) Application of funds Fixed assets Investments Net current assets Miscellaneous expenses Accumulated loss Total Net worth Income Sales including janata subsidy Other revenue Variation of stocks Total(i) Expenditure Cost of production Administration expense S&D expenses Finance charges Depreciation Total(ii) Profit (+) Loss(-) (i-ii) Prior period adjustments and tax Net profit (+)/ Loss(-) 2899.04 2965.85 5864.89 7877.21 824.63 6.47 6451.31 119.53 475.27 7877.21 1417.52 7943.56 106.69 1322.98 9373.23 5864.92 1897.09 855.30 609.78 45.76 9272.85 100.38 -92.99 7.39 3000.59 3295.92 6296.51 8323.18 853.52 6.47 6578.36 119.53 765.30 8323.18 1141.84 7705.45 123.40 676.41 8505.26 5367.90 1908.85 936.68 535.64 47.02 8796.09 -290.83 0.80 -290.03 1800.28 4646..54 6446.82 14331.8 2 843.23 6.26 7075.38 774.92 5632.03 14331.8 2 1186.76 6998.38 475.38 537.37 6936.39 5666.15 1995.94 459.20 420.00 40.83 8582.12 570.99 218.02 -352.97 1800.28 4964.13 6764.13 14539.5 0 814.43 6.26 8056.58 466.90 5195.33 14539.50 1836.31 8770.44 634.12 -1178.00 8226.56 5260.59 1868.41 545.99 481.31 40.21 8196.51 30..05 406.65 436.70 1859.86 5115.33 6975.19 15337.20 793.80 6.26 9195.80 278.41 5102.93 15337.20 2758.47 9481.09 1051.60 202..97 10735.66 7113.15 2367.71 715.95 465.68 39.49 10701.98 33.68 58.73 92.41

A Project Report On Analysis and Interpretation of 10 Years Financial Statements

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ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

make the products more attractive...

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

especially saris, like Maharashtra.

looms not more than 3 years.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

: 60-70 CRORE P.a.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ORGANIGATION CHART OF K.H.D.C.L.td.

QUALITY CONTROL DEPARTEMENT

HUMAN RESOURCE DEPARTEMENT

PROJECT INSPECTOR /ASSISTANT TECHNICAL OFFICER

ASSISTANT TECHNICAL OFFICER

ACCOUNT MANAGER ASSISTANT SALES MANAGER, GRADE-2 SENIOR ACCOUNT MANAGER

ASSISTANT PERSONNAL OFFICER

PRODUCTION MANAGER (HUBLI)

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

DEPARTEMENTS OF K.H.D.C.Ltd There are totally 6 departments, namely

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

TECHNICAL OFFICER ASSISTANT TECHNICAL OFFICER / PROJECT TRANSMITTOR

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

FLOW CHART OFPRODUCTION DEPARTEMENT.

Receiving the grey yarn

Dyeing the yarn

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

(The dyed yarn which is ready for pre-preatary work.)

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

(The weaver weaving for the making Drill cloth.)

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

DETAILS OF PRODUCTION FOR THE YEAR 2007-08 AND 2006-07

II) FINANCE DEPARTEMENT

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

HUMAN RESOURCE DEPARTEMENT.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

(THROUGH ICICI LOMBARD GENERAL INSURANCE COMPANY)

Duration of course is 10 months. Stipend is paid Rs 300 per year.

ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL STATEMENTS OF K.H.D.C.L.td.

Objectives of K.H.D.C.L.td towards weavers.

Income per month