INTRODUCTION ABOUT THE

INDUSTRY

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.
The Karnataka Handloom Development Corporation was established in 1975 with the objective of
providing support to weavers. Today KHDC has 13000 handlooms under its wing.
The main objects of the Corporation are to promote, aid and assist the
rehabilitation, growth and development of the handloom industry & To provide
financial assistance to Handloom Industry.
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 are
1) To know the financial status, long term financial position of K.H.D.C.L.td
2) To know the growth rate in profit, expenses, cost of goods sold
3) To know the proportion of various elements of income statement items to the
total sales revenue of K.H.D.C.L.td
4) To know the proportion of various elements of balance sheet items to the
total capital employed of K.H.D.C.L.td
5) To learn about the export and import departments pertaining to international
business.

PROFILE OF THE COMPANY

(KHDC) Was established on Dec 12, 1975 sells its products by the name of Priyadarshini
handlooms. Priyadarshini handlooms like saris, bed sheets, shirts and towel, napkin are
used by the people of inside and outside of India. In Karnataka more than 13 places
K.H.D.C centres' are working. It is processed and sold in the market by the brand of
Priyadarshini handlooms.

KHDC mission is to the prosperity of the corporation. Its aim is to improve the
economic and social status which will then ensure the well being of the corporation
and also to Provide employment to the handlooms Repositioning the Company from
'Market Follower' to 'Market Leader.
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.
The Chairman are Sri M.D. LAXMINARAYANA, Sri GOOLIHATTI D. SHEKAR,
Sri ARAVIND G. RISHBUD and Managing directors are Sri S.N.JAYARAM, IAS.,
Sri I.R.PERUMAL,IAS.,

EXPORT DEPARTMENT

K.H.D.C.L has a long tradition of maintaining the highest quality standards. Right from the selection of raw
materials to processing and packaging of the end product exported regularly to UAE, Bahrain, Kuwait,
Quatar , south East Asian countries as well as North America & South America.
KHDC export functions are

Find out potential manufacturer for their buyer.

Negotiate low price complete garments for their buyer.

Sample develops:Samples are developed to suit the season's colours, fabric and style based of their buyers
requirements.

Minimize operating cost & minimization risk for buyer.

Order execution & Quality control.

Monitoring Systems

Pre-Production check:

Risks are reduced by checking material components, accessories / user manuals etc. at this stage itself.

Initial Production Check

First finished products are checked against buyer's specification and proto type sample. Deviations are
identified and brought out for correction.

During Production Check

Inspection during production is carried out to check and verify that the initial discrepancies have been
rectified and to ensure the average quality standard of production runs.

In line pre-final & final inspection

Final random inspection is carried out when the total consignment is packed

HUMAN RESOURCE DEPARTMENT

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.
Training
Advance training: this is a training given to the weavers who are well worse with the basic
knowledge of weaving .
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.
Benefits provided to the weavers
Thrift fund scheme: The Corporation is deducting 6-8%of the wages of the weavers towards thrift
fund scheme.
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.
life insurance giving Rs 10000/- per family as a nominee & otherwise Rs 3000/- per family.
Housing scheme: The corporation was also constructed the weavers colonies for allotting the
houses to those weavers who are not having the permanents houses.
Objectives of K.H.D.C.L.td towards weavers.
To provide continuous employment at weavers for their steady livelihood.
To release the weavers from the clutches of master weavers.
To improve the standard of living of the weavers

FINANCE DEPARTMENT

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.
financial controller
Assistant manager
Accounts (clerks
K.H.D.C.L.td they maintain monthly statement for Gadag production centre are given
as follows.
Raw material statement- This is a statement which shows the total number of raw
materials received from ware house/mills/corporations the clerk enter on which day,
time, quantity, price etc.
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 .
Receipt and Payment statement:-This is a statement which shows the monthly
total receipt and payment transaction.
DUTIES AND RESPONSIBILITIES OF FINANCE DEPARTEMENT
Handling all cash and bank transaction
Recording all Issued and Received Raw-materials, finished goods.
Preparing budget and comparing the actual with the budget figures and bring to
notice of management major variances if any
Periodical reconciliation of all subsidiary book balances in control accounts.
Filling the statutory forms as required by laws.

MARKETING DEPARTMENT

The marketing department involves the show rooms The mainly show rooms are established in Bangalore,
Hubli, Shivamoga. In Bangalore only 8-10 show rooms are there.

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. Each show room contains 25-30
Employees.
Activities under Warehouse to retail outlet management to be computerized
1. Warehouse management

a. Individual warehouse management

b. Processing house management

2. Account management system

a. Corporate Accounts

b. Overall Financial account management

3. Wholesale

a. Rate management

b. Account Management
4. Retail sale distribution management

a. Sales forecasting

b. Marketing vendor management

c. Rebate management
5. Retail - Outlet management

a. Point of sale

b. Finance management

c. Inventory management

SWOT ANALYSIS
STRENGTHS
The demand is there for traditional hand weaved clothes.
The large market is there in the out side state also for cotton clothes especially saris, like Maharashtra.
A complete support from the government.

It helps the weavers from reliving from the clusters.

The durability of hand loom products is minimum 6 years but power looms not more than 3 years.
WEAKNESS
Dependence on few products.
Not possible to maintain the punctual time compare to Power looms.
Production cost is more comparing to power looms.
To retain the employees pay more which increase cost of production
OPPORTUNITIES
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 the price.
THREATS
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 hand loom industry to stand in the
competitive world.

FINDING, CONCLUSION AND SUGGESTIONS

FINDINGS

Only few are aware of the product and only very few know about the manufacture of the
Karnataka handlooms development.
customers are aware of the different kinds of mecandise they provide
while exporting incentives are provided in order to encourage exports and increase profits.
their are 40% of women employers in the firm.
CONCLUSION
From the field survey it has come to know that the slk saree market in Bangalore is vast and
competitive market. slk saree is having good market has competition with other slk saree
companies. Here customers are also aware of the services want to get maximum satisfaction
from this service for which they are spending their valuable money of the saree.
SUGGESTONS
The company needs to open its government retail outlets to have a greater market
Rather than outsourcing the designs it should be created here.
Dedicated and innovative employers should be hired.
Adopt new technologies in production process.