Beruflich Dokumente
Kultur Dokumente
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
Chapter 9
Annexure
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List of charts
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EXECUTIVE SUMMARY
2) To know the growth rate in profit, expenses, cost of goods sold through comparative
income statement.
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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
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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.
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.
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For example: middle class people purchase the 60/90 size bed sheets. & high class
people purchase 90/108 size bed sheet.
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
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On 1977 the K.H.D.C.L.td has started in Gadag district. Under this 18 sub-centers are
working
1) Betageri
2) Narasapur
3) Shigli
4) Laxmeshwar
5) Khanapur
6) Gajendragad
7) Mushigeri
8) Allavandi
9) Mundargi
10) Hombal
11) Hebbal
12) 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.
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INTRODUCTION TO INDUSTRY
HANDLOOM :Handloom industry form a part of India‟s 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.
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
found equipments made of wood for interlacing two set of threads of which result was
fabric & process is called weaving.
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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.
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20% of the goods produced every year. It also helps to get more foreign exchange to our
economy.
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.
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WEAKNESS
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IV) The employees are migrating from hand loom to power loom.
V) To retain the employees pay more which increase cost of production.
OPPORTUNITIES
I) More demand for hand loom products.
II) Multi thread design get only hand loom industry.
III) Value addition can be made by hand work, it increase the value also
the price.
THREATS
I) Number of skilled weavers is decreasing day by day there
May be weavers are not available in future.
II) If there is no government assistant then it is not possible to
to hand loom industry to stand in the competitive world.
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Company Profile
SYNDICATE BANK.
FEDERAL BANK LIMITED.
PUNJAB NATIONAL BANK.
CORPORATION BANK.
VIJAYA BANK.
STATE BANK OF PATIALA.
Sri I.R.PERUMAL,IAS.,
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MACHINES : NO.
CHARTED ACCOUNTANTS,
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KESHAWAPUR, HUBLI-580023
KARNATAKA.
BANGALORE OFFICE
PRIYADARSHINICOMMERCIAL COMPLEX
HALASURU,
BANGALORE-560042
PHONE – 080-25575421-425
FAX – 080-25575426
E-mail :khdc@vsnl.net
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CHAIRMAN/BOARD
MANAGING DIRECTOR
SALES MANAGER
TECHNICAL
OFFICER FINANCE
JOINT
CONTROLLER
DIRECTIOR
ASSISTANT SALES
MANAGER, GRADE-1
ASSISTANT ACCOUNT
MANAGER PERSONNAL
TECHNICAL
PROJECT INSPECTOR OFFICER
OFFICER
/ASSISTANT ASSISTANT SALES
TECHNICAL OFFICER MANAGER, GRADE-2
SENIOR
ACCOUNT ASSISTANT
PROJECT MANAGER PERSONNAL
INSPECTOR OFFICER
ASSISTANT
ACCOUNTING
OFFICER ASSISTANT/
CLERK
PURCHASE
PRODUCTION PRODUCTION DEPARTEMENT
MANAGER MANAGER
(COTTON) (SILK)
(BANGALORE) ACCOUNTANT
PRODUCTION
MANAGER (HUBLI)
PROJECTADMINIST
OR /TECHNICAL
OFFICER
ASSISTANTS
WEAVERS
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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 company‟s financial position, growth rate. Etc.
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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3.4 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.
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 company‟s trends for the last ten years with regard to financial
performance.
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.
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
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.
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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.
CHEAP MANAGER OF
PRODUCTION
PROJECT ADMINSTRATOR
TECHNICAL OFFICER
UNIT SUPERVISORS
WEAVERS
HELPERS
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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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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 it‟s all the
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production units. and also opinion of the unit supervisor the quality of raw-
material 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 raw-
materials 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.
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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.
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.
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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 grey
yarn is stored which is use for further processing. For example the Drill cloth is
use for further processing.
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.
The total value of production of during the year is in the order of Rs 3250.93 lakhs.
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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.
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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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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
can‟t have those skills. Weavers are belonging to the devanga committee. Especially
these people are having the skill of weaving; it‟s like that no need to teach to the child of
car painter to how to make doors, windows etc.
The K.H.D.C.Ltd give the training to the weavers for up gradation of there
skills.
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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 don‟t 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 woman‟s.
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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 Gadag-
Narasapur branch.
Apart from above benefits weavers also enjoy living cum working shed.
Free ¤t 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
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 also trained.
Duration of course is 10 months. Stipend is paid Rs 300 per year.
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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
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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.
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 semi-
finished 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 children‟s.
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
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
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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.
THE SEGMENT WISE SALES TURNOVER DURING THE YEAR 2006-07, 2007-08.
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
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.
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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.
TECHNICAL OFFICER
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PROJEC INSPECTOR
C.S.P. Machine
(Count Strength Product)
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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.
FOLLOWING SHEDULE SHOWS THE YARN ISSUE TO THE WEAVERS FROM THE
YEAR 1998-99 TO 2007-08.
Particulars 1998-99 1999-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08
Yarn issue to 4163.71 384409 2798.34 2255.15 2753.98 2709.28 2111.22 2531.27 2182.40 2247.41
weavers
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STATEMENTS OF K.H.D.C.L.td.”
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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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
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Here for the project the profit and loss a/cs, balance sheet are used for comparative
analysis and interpretation of the study.
ASSETS = EQUITIES
(A) = (E)
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
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 pre-
pared 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.
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
presenting them in most convenient, simple and understandable. Therefore analysis
involves the following:
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
INTERPRETATION:
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
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.
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.
Comparative statements
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
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.
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
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.
(STATEMENT 1)
Particulars 1998-99 1999-2000 Absolute Absolute
(In Lakhs) (In Lakhs) increase/decrease increase/decrease
in Rs in %
A) Net sales 7943.56 7705.45 -238.11 -2.99%
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
(STATEMENT 2)
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
(STATEMENT 3)
loss
-801.00 -1089.35 -288.35 -35.99%
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
(STATEMENT 4)
Particulars 2001-2002 2002-2003 Absolute Absolute
(In Lakhs) (In Lakhs) increase/decrease increase/decrease
in Rs in %
A) Net sales 9688.63 4989.75 -4698.88 48.49%
loss
-1089.35 -1472.84 383.49 35.20%
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STATEMENTS OF K.H.D.C.L.td.”
(STATEMENT 5)
loss
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STATEMENTS OF K.H.D.C.L.td.”
(STATEMENT 6)
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STATEMENTS OF K.H.D.C.L.td.”
loss
-628.86 -785.17 156.31 24.85%
Net profit/loss
(STATEMENT 7)
566.40 - - -
Less : cost of goods sold
(o.s+purchase-c.s)
7077.04 6998.38 -645.06 -8.43%
Material consumed
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
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(STATEMENT 8)
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STATEMENTS OF K.H.D.C.L.td.”
loss
Net profit/loss
(STATEMENT 9)
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
Less : interest - - - -
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.
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
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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.
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.
(STATEMENT 10)
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STATEMENTS OF K.H.D.C.L.td.”
(STATEMENT 11)
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STATEMENTS OF K.H.D.C.L.td.”
(STATEMENT 12)
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STATEMENTS OF K.H.D.C.L.td.”
(STATEMENT 13)
6530.32 5003.88
Capital
employed
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STATEMENTS OF K.H.D.C.L.td.”
(STATEMENT 14)
E) capital
employed 5003.88 3848.17 -1155.71 -23.09%
E) =(C+D)
-1155.71 -23.09%
5003.88 3848.17
Capital
employed
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STATEMENTS OF K.H.D.C.L.td.”
(STATEMENT 15)
E) capital
employed 3848.17 4139.64 291.47 7.57%
E) =(C+D)
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Capital
employed
(STATEMENT 16)
E) capital
employed 4139.64 8699.79 4560.15 110.15%
E) =(C+D)
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6.68%
5279.06 5632.03 352.97
Less: loss
(previous year)
Capital
employed
(STATEMENT 17)
E) capital 7.40%
employed 8699.79 9344.17 644.38
E) =(C+D)
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
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Capital
employed
(STATEMENT 18)
A) Total current
assets 852348245 947421520 95073275 11%
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
E) capital
employed 934417027 1027427536 93010509 9.9%
E) =(C+D)
1453950330 1537720071 83769741 5.7%
Share capital
Less: loss
(previous year)
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 04-
05 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.
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
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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.
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 year‟s 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.
(STATEMENT 19)
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- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities
6570.84 89.54% 6697.89 88.7%
Working capital
C) = (A-B)
(STATEMENT 20)
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- - - -
(STATEMENT 21)
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Rs % Rs %
current assets 5320.88 84.55% 5559.43 85.14%
- - - -
Less : C current liabilities
E) capital employed
E) =(C+D) 6294.48 100% 6530.32 100%
Represented by Share
holders net worth. 8013.43 127.30% 9430.02 144.40%
01-02 &02-03.
(STATEMENT 22)
100%
6530.32 100% 5003.88
Capital employed
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(STATEMENT 23)
- - - -
Less : C current liabilities
- - - -
B) Total current liabilities
100%
5003.88 3848.17 100%
Capital employed
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(STATEMENT 24)
- - - -
Less : C current liabilities
- - - -
B) Total current liabilities
3848.17 4139.64
100%
100%
Capital employed
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(STATEMENT 25)
- - - -
B) Total current liabilities
64.73%
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100%
4139.64 8699.79
100%
Capital employed
(STATEMENT 26)
E) capital
employed 8699.79 100% 9344.17 100%
E) =(C+D)
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
Less: loss
(previous year)
Capital
employed
Common size balance sheet of K.H.D.C.L.td for the year .2006-07 ,2007-08.
(STATEMENT 27)
Rs Percentage Rs Percentage
A) Total current
assets 852348245 91.21% 947421520 92.2%
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
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E) capital 100%
employed 934417027 1027427536 100%
E) =(C+D)
Less: loss
(previous year)
OR
i) share capital 443820700 30.52 443820700 28.86 A) Fixed assets 81442782 5.61 79380106 5.16
TOTAL 1453950330 100 1537720071 100 TOTAL 1453950330 100 1537720071 100
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
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.
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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.
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
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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
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…
(STATEMENT 29)
Rs %
A) Net sales 7943.56 100% 7705.45 100%
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Profit /loss
100.38 +1.26% -290.83 -4.77%
COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 99-00, 00-01.
(STATEMENT 30)
Rs % Rs %
A) Net sales 7705.45 100% 6017.77 100%
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7705.45 - 6017.77 -
Material consumed
Less: manufacturing
expenses(cost of production) 5367.90 -69.66% 4619.93 -76.77
2337.55 +30.33% 1397.84 +23.22
Gross profit
Profit /loss
-290.83 -4.77% -801.00 -13.3%
Net profit/loss
COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 00-01, 01-02.
(STATEMENT 31)
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Rs % Rs %
A) Net sales 6017.77 100% 9688.63 100%
Less : cost of goods sold
(o.s+purchase-c.s) - - 2573.66 -26.56%
6017.77 - 7114.97 73.43%
Material consumed
Less: manufacturing
expenses(cost of
4619.93 -76.77 4671.27 -48.21%
production)
1397.84 +23.22 2443.7 25.22%
Gross profit
Less : operating
expenses 2665.22 -44.28 3032.36 -31.29%
1) administration
expenses
2) selling & distribution
expenses
Loss
-801.00 -13.3% -1089.35 -11.24%
less: prior period
adjustments. Tax, bad
-152.65 -2.53% -91.40 -0.94%
debts etc.
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COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 01-02, 02-03.
(STATEMENT 32)
Rs % Rs %
A) Net sales 9688.63 100% 4989.75 100%
Less: manufacturing
expenses(cost of production) 4671.27 -48.21% 4863.52 -97.47%
Gross profit 2443.7 25.22% 126.23 2.53%
loss
-1089.35 -11.24% -1472.84 -29.51%
less: prior period
adjustments. Tax, bad debts -91.40 -0.94% 9.74 -0.19%
etc.
-1180.75 -12.18% 1482.58 -29.71%
Net profit/loss
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COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 02-03, 03-04.
(STATEMENT 33)
Rs % Rs %
A) Net sales 4989.75 100% 8565.68 100%
- - 2441.55 -28.50%
Less : cost of goods sold
(o.s+purchase-c.s)
4989.75 - 6124.13 71.50%
Material consumed
Less: manufacturing
expenses(cost of production)
4863.52 -97.47% 3342.10 -39.01%
Gross profit 126.23 2.53% 2782.03 32.47%
loss
-1472.84 -29.51% -628.86 -7.34%
less: prior period
adjustments. Tax, bad debts 9.74 -0.19% +289.88 +3.38%
etc.
-1482.58 -29.71% -338.98 -3.95%
Net profit/loss
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COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 03-04, 04-05.
(STATEMENT 34)
Rs % Rs %
A) Net sales 8565.68 100% 7643.44 100%
Less: manufacturing
expenses(cost of production)
3342.10 -39.01% 4871.38 -63.73%
Gross profit 2782.03 32.47% 2205.66 28.85%
Less : operating expenses
1) administration expenses
2) selling & distribution 3031.93 -35.39% 2657.58 -34.76%
expenses
loss
-628.86 -7.34% -785.17 -10.27%
less: prior period
adjustments. Tax, bad debts
+289.88 +3.38% +227.37 +2.97%
etc.
-338.98 -3.95% -557.80 -7.29%
Net profit/loss
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COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 04-05, 05-06.
(STATEMENT 35)
Rs % Rs %
A) Net sales 7643.44 100% 6998.38 100%
566.40 -7.41% - -
Less : cost of goods sold
(o.s+purchase-c.s)
7077.04 92.59% 6998.38 -
Material consumed
Less: manufacturing
expenses(cost of production)
4871.38 -63.73% 5666.15 80.96%
Gross profit 2205.66 28.85% 1332.23 19.04%
loss
-785.17 -10.27% -570.99 -8.15%
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
Net profit/loss
(STATEMENT 36)
Rs % Rs %
A) Net sales 6998.38 100% 8770.44 100
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
less: prior period adjustments. Tax, bad +218.02 +3.11% +406.65 4.63%
debts etc.
-352.97 -5.04% +436.70 4.97
Net profit/loss
(STATEMENT 37)
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS 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
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
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. Non-
operating incomes are+33.45% of its total sales due to profit on sale of fixed assets etc. -
29.71% 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,
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
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.
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.
12000 1998-99
CAPITAL EMPLOYED
CHART 1
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
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.
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.
1000
1998-99
YEARS PROFIT /LOSS
NET PROFIT OR LOSS
500 1999-00
1998-99 7.39
2000-01
0 1999-00 -290.03
2001-02
99 00 01 02 03 04 05 06 07 08 2000-01 -953.65
-500 2002-03
2001-02 -1180.75
2003-04
-1000 2002-03 -1482.58
2004-05
-1500 2003-04 -338.98
2005-06
2004-05 -557.8
-2000 2006-07
2005-06 -352.97
YEARS 2007-08
2006-07 436.7
2007-08 92.41
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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”
CHART 3
4) The sales of K.H.D.C.L.td. was raised in high rate in the year 01-02.
SALES OF K.H.D.C.L.td.
YEARS SALES
1998-99 7943.56
12000
1998-99 1999-00 7705.45
10000
1999-00
2000-01 6017.77
2001-02 9688.63
8000 2000-01
2002-03 4989.75
SALES
2001-02
6000 2003-04 8565.68
2002-03 2004-05 7643.44
4000 2003-04 2005-06 6998.38
2000 2004-05 2006-07 8770.44
2005-06 2007-08 9481.09
0
2006-07
YEARS
2007-08
YEARS
CHART 4
ADMINISTRATION
YEARS EXPENSES
1998-99 1897.09
1999-00 1908.85
2000-01 1876.39
2001-02 1986.12
2002-03 2255.13
2003-04 2248.9
2004-05 2142.81
2005-06 1995.94
2006-07 1868.41
ADMINISTRATION EXPENSES OF K.H.D.C.L.td. 2007-08 2367.71
2500
ADMINISTRATION EXPENSES
1998-99
2000 1999-00
2000-01
1500
2001-02
2002-03
1000
2003-04
500 2004-05
2005-06
0
2006-07
YEARS
2007-08
YEARS
CHART 5
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 1998-99
YEARS FIXED ASSETS
850 1999-00 1998-99 824.63
FIXED ASSETS
840
2000-01 1999-00 859.99
830
820 2001-02 2000-01 854.07
810 2002-03 2001-02 851.36
800 2002-03 837.99
790 2003-04
2003-04 808.93
780 2004-05
770 2004-05 798.45
2005-06 2005-06 849.49
760
YEARS 2006-07 2006-07 820.69
2007-08 2007-08 800.06
YEARS
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.
9000
1999-00 1999-00 6578.36
8000
7000 2000-01 5320.88
2000-01
6000 2001-02 5559.43
2001-02
5000 2002-03 4046.36
4000 2002-03 2003-04 2919.71
3000 2003-04 2004-05 2797.31
2000 2004-05 2005-06 7075.38
1000 2006-07 8056.58
2005-06
0
2007-08 9195.8
YEARS 2006-07
2007-08
YEARS
CHART 7
8) Revenue from other sources are raised from year to year of production of K.H.D.C.L.td was r
CHART 8
COST OF
YEARS PRODUCTION
1998-99 5864.92
9) Cost of production of K.H.D.C.L.td. are as below with an average of
1999-00 5367.9
3342.1 lakhs
2000-01 4619.93
COST OF PRODUCTION OF K.H.D.C.L.td. 2001-02 4671.27
2002-03 4863.52
2003-04 3342.1
8000 2004-05 4871.38
1998-99
COST OF PRODUCTION
CHART 9
FINDINGS
1) Company‟s 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 children‟s 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
SUGGESTIONS
2) 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.
CONCLUSION
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 year‟s 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..
Financial Management
By M.L.Guledgudd
Share capital 1572.21 1572.21 1572.21 1572.21 1572.21 4438.21 4438.21 4438.21 4438.21 4438.21
Reserve surplus 440.11 454.46 451.50 462.47 459.51 446.11 935.76 3158.50 3060.32 3701.59
Deferred government
grant - - - - - - - 288.29 276.56 262.21
Sub total (i) 2012.32 2026..67 2023.71 2034.68 2031.72 4884.32 5373.97 7885.00 7775.09 8402.01
Loan funds
Long term loan 2899.04 3000.59 3014.95 3206.20 3311.01 435.81 1129.96 1800.28 1800.28 1859.86
Short term loan 2965.85 3295.92 2884.77 4189.14 4043.42 3249.30 2914.77 4646..54 4964.13 5115.33
Sub total (ii) 5864.89 6296.51 5989.72 7395.34 7354.43 3685.11 4044.73 6446.82 6764.13 6975.19
Total(i+ii) 7877.21 8323.18 8013.43 9430.02 9386.15 8569.43 9418.70 14331.82 14539.50 15337.20
Application of funds
Fixed assets 824.63 853.52 847.60 844.89 831.52 802.67 792.19 843.23 814.43 793.80
Investments’ 6.47 6.47 6.47 6.47 6.47 6.26 6.26 6.26 6.26 6.26
Net current assets 6451.31 6578.36 5320.88 5559.43 4046.36 2919.71 2797.31 7075.38 8056.58 9195.80
Miscellaneous 119.53 119.53 119.53 119.53 119.53 119.53 543.89 774.92 466.90 278.41
expenses 475.27 765.30 1718.95 2899.70 4382.27 4721.26 5279.06 5632.03 5195.33 5102.93
Accumulated loss
Total 7877.21 8323.18 8013.43 9430.02 9386.15 8569.43 9418.71 14331.82 14539.50 15337.20
Net worth 1417.52 1141.84 185.23 -984.55 -2470.08 43.53 -448.97 1186.76 1836.31 2758.47
Income
Sales including janata 7943.56 7705.45 6017.77 9688.63 4989.75 8565.68 7643.44 6998.38 8770.44 9481.09
subsidy
Other revenue 106.69 123.40 120.42 127.86 122.75 103.71 88.69 475.38 634.12 1051.60
Variation of stocks 1322.98 676.41 948.15 -2573.66 1546.42 -2441.55 -566.40 537.37 -1178.00 202..97
Total(i) 9373.23 8505.26 7086.34 7242.83 6658.92 6227.84 7165.73 6936.39 8226.56 10735.66
Expenditure
Cost of production 5864.92 5367.90 4619.93 4671.27 4863.52 3342.10 4871.38 5666.15 5260.59 7113.15
Administration 1897.09 1908.85 1876.39 1986.12 2255.13 2248.90 2142.81 1995.94 1868.41 2367.71
expense
S&D expenses 855.30 936.68 788.83 1046.24 390.85 783.83 514.77 459.20 545.99 715.95
Finance charges 609.78 535.64 553.98 584.59 577.69 440.17 382.44 420.00 481.31 465.68
Depreciation 45.76 47.02 48.21 43.96 44.57 42.50 39.50 40.83 40.21 39.49
Total(ii) 9272.85 8796.09 7887.34 8332.18 8131.76 6856.70 7950.90 8582.12 8196.51 10701.98
Profit (+) Loss(-) (i-ii) 100.38 -290.83 -801.00 -1089.35 -1472.84 -628.86 -785.17 570.99 30..05 33.68
Prior period -92.99 0.80 -152.65 -91.40 -9.74 289.88 227.37 218.02 406.65 58.73
adjustments’ and tax
7.39 -290.03 -953.65 -1180.75 -1482.58 -338.98 -557.80 -352.97 436.70 92.41
Net profit (+)/ Loss(-)