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“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

Chapter 9
Annexure
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Sl.No Name of the Statement


1 Comparative income statement 98-99, 99-00
2 Comparative income statement 99-00, 00-01
3 Comparative income statement 00-01, 01-02
4 Comparative income statement 01-02, 02-03
5 Comparative income statement 02-03, 03-04
6 Comparative income statement 03-04, 04-05
7 Comparative income statement 04-05, 05-06
8 Comparative income statement 05-06, 06-07
9 Comparative income statement 06-07, 07-08
10 Comparative balance sheet 98-99, 99-00
11 Comparative balance sheet 99-00, 00-01
12 Comparative balance sheet 00-01, 01-02
13 Comparative balance sheet 01-02, 02-03
14 Comparative balance sheet 02-03, 03-04
15 Comparative balance sheet 03-04, 04-05
16 Comparative balance sheet 04-05, 05-06
17 Comparative balance sheet 05-06, 06-07
18 Comparative balance sheet 06-07, 07-08
19 Common size balance sheet 98-99, 99-00
20 Common size balance sheet 99-00, 00-01
21 Common size balance sheet 00-01, 01-02
22 Common size balance sheet 01-02, 02-03
23 Common size balance sheet 02-03, 03-04
24 Common size balance sheet 03-04, 04-05
25 Common size balance sheet 04-05, 05-06
26 Common size balance sheet 05-06, 06-07
27 Common size balance sheet 06-07, 07-08
28 Common size balance sheet 06-07, 07-08(horizontal)
29 Common size income statement 98-99, 99-00
30 Common size income statement 99-00, 00-01
31 Common size income statement 00-01, 01-02
32 Common size income statement 01-02, 02-03
33 Common size income statement 02-03, 03-04
34 Common size income statement 03-04, 04-05
35 Common size income statement 04-05, 05-06
36 Common size income statement 05-06,06-07
37 Common size income statement 06-07, 07-08

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List of charts

Chart no Name of charts


1 Chart on capital employed
2 Chart on accumulated loss
3 Chart on net profit or loss
4 Chart on sales
5 Chart on administration expenses
6 Chart on fixed assets
7 Chart on net current assets
8 Chart on revenue from other sources
9 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.

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

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.
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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1) To provide continuous employment at weavers for their steady lively hood.


2) Arrangements for the modernization of the handlooms wherever necessary
make the products more attractive...
3) To release the weavers from the clutches of master weavers.
4) Organizing 100% marketing facility for the handloom products.
5) Maintain raw-material bank with adequate stock of yarn, dyes &
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.

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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government, functioning in the state. It is providing the continuous employment


opportunity to the 15000 weaver‟s 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) 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.

BRANCHES OF PRODUCING POPULAR COTTON PRODUCTS.

1) Polyester production centre (Betageri). – 60/90 inch Rib bed sheet.


2) Common weaving centers (Betageri). - 90/108 inch Bed sheet.
3) Common weaving training centre. – Zakard bed sheet
(Narasapur)
4) Sub centre Narasapur - V.V.Shirtings.
.
5) Sub-centre Shigli - Button bed sheet.
6) Sub-centre Laxmeshwar - Meera bed sheet (Govt. hospitals)
7) Sub-centre Gajendragada - 2/80 cotton lunge
8) Sub-centre Hunsigeri - Casement
9) Hubli - V.V.Shirtings

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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.

The production of handloom fabrics was 7.862 million square in 1997-


98 & 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
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.

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
India out of the total contribution of textile industry handloom sector constitutes about

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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 women‟s 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.


 STRENGTHS
I) The demand is there for traditional hand weaved clothes.
II) The large market is there in the out side state also for cotton clothes
especially saris, like Maharashtra.

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III) A complete support from the government.


IV) It helps the weavers from reliving from the clusters.
V) The K.H.D.C. Ltd products sold by the brand name of
“PRIYADARSHINI HAND LOOMS” – THE HOME OF
ORIGINAL HAND LOOMS. This is having one of the best good will
in the Indian market.
VI) 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.
VII) 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) Betageri branch only produce the Cotton Rib bed sheets.
VIII) The durability of hand loom products is minimum 6 years but power
looms not more than 3 years.
IX) The hand loom products are value addition with durability and hand
work are available.

 WEAKNESS

I) Dependence on few products.


II) Not possible to maintain the punctual time compare to
Power looms.
III) Production cost is more comparing to power looms.

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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.

9 PROJECT OFFICES OF K.H.D.C.L.td


1) GADAG-BETAGERI
2) BHAGYA NAGAR (KOPPAL)
3) RABAKAVI
4) BANAHATTI
5) RANEBENNUR
6) ILKAL
7) BASAVKALAYAN
8) GULBARGA
9) RAMDURGA.

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Company Profile

NAME OF THE ORGANISATION: KARNATAK HANDLOOM DEVLOPEMENT


CORPORATION.

YEAR OF ESTABLISHMENT : 1975

TOTAL SHOW ROOMS : 60

PLACES OF SHOW ROOM : DEHLI, KOLKATTA, BANGALORE,


HUBLI, GADAG-BETAGERI, CHENNAI etc.

MANAGING DIRECTOR : Dr H. BHASKAR, IAS (FOR WHOLE STATE)

BUILDING : RENTED, 60000 P.a.

BANKERS : STATE BANK OF INDIA.


STATE BANK OF HYDERBAD.
CANARA BANK.
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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

CHAIRMAN : 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.,

Sri P.B. RAMMURTHY, IAS.,

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Sri AJAY SETH, IAS.,

FUTURE PLAN : TO COVER ALL WEAVERS.

TURN OVER : 90 CRORES (K.H.D.C.)


2 CRORES GADAG BRANCH.

WORKERS : 25 WEAVERS, 5 VENDORS.

BASIS OF SALARY : PEACE RATE SYSTEM.

MACHINES : NO.

WORKING DAYS : 365 DAYS.

PER DAY PRODUCTION : 120-140.

BRAND NAME : “PRIYADARSHINI HANDLOOMS.”


- THE ORIGINAL HOME OF HANDLOOMS

SALES : 60-70 CRORE P.a.

DURABILITY OF K.H.D.C. MINIMUM 6 YEARS.


PRODUCTS :

CUSTOMERS : MEDIUM AND HIGH INCOME PEOPLE.

COMPETETORS : POWER LOOMS

AUDITORS : BASAVARAJA & DILEEP

CHARTED ACCOUNTANTS,

# 14, 2nd FLOOR, MADHU COMPLEX

BURGALMATT NORTH CROSS ROAD,

V.V. PURAM, BANGALORE-560004.

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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 QUALITY MARKETING FINANCE HUMAN


DEPARTEMENT CONTROL DEPARTEMENT DEPARTEMENT RESOURCE
DEPARTEMENT DEPARTEMENT

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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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 company‟s 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 company‟s 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.
1. Comparative income statements
2. Common-size income statements
3. Comparative balance sheet
4. 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.

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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 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.

2) Dyeing according to the required colors: Dyeing means it is the process of


coloring the yarn‟s 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 MSE‟s 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.

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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.

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

PRODUCTION 2007-08 2006-07


VARIETY (In Lakh ) In Lakh (In Lakh ) In Lakh
Rs) Rs)
Silk 1.99 435.91 1.68 379.69
Janatha varieties 11.32 233.98 13.80 257.33
Non janatha varieties 42.97 917.61 40.53 905.43
Polyester 52.55 1663.43 51.35 1624.32
TOTAL 108.83 3250.93 107.36 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 it‟s all the units and
sends these statements to the head office. Like

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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 2007-08 2006-07


(Rs in lakhs)
Proffit/Loss before interest and description 538.85 551.57
Interest and depreciation 505.17 521.52
Proffit for the year 33.68 30.05
Prior period adjustement /FBT (+) 58.73 (+) 406.65
Net Proffit for the year 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.
l) Providing all the financial schemes, packages to the weavers as they are

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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
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.

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.
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,

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

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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 doesn‟t 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 Variety of Production Wages in Rs Production Income per


products per day per meters. per month month
1 Bed sheet 3 meters 10.50 90 meters 945
2 Tarkee towel 2 meters 20 60 meters 1200
3 Polyester sari 9 meters 11.50 300 meters 3450
4 Cotton sari 7 meters 10 240 meters 2400
5 Casement 5 meters 7.50 120 meters 900
cloth
6 Drill cloth 4 meters 10.50 120 meters 1260
7 Cotton lungee 4 meters 12 90 meters 1080

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.

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 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.

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 2006-07 2007-08


Rs in Lakhs) (Rs in Lakhs)
Retail sales 1496.27 1693.07
Wholesale sales 679.09 1410.07
S.S.D.S 561.85 359.03
V.V.Scheme 561.85 359.03
Other sales 22.16 51.36
Total 8770.44 9481.09
Less Discount/Rebate 451.71 593.20
Total 8318.73 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
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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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 it‟s all the 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 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
tenders. Which applicant quotes low Rate that tender is selected for supply of Raw-
material.

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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 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

INTRODUCTION TO THE STUDY.

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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.
1) What is the financial status of the firm on a particular date?
2) How is the firm‟s 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 = EQUITIES

(A) = (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 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.

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 layman‟s 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
presenting them in most convenient, simple and understandable. Therefore analysis
involves the following:

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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 firm„s 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
the conclusion drawn from analysis in simple terms. The interpretation involves the
following.
1) Study of relationship among the of items of financial statements.

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“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
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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.
6) It helps to evaluate correctness and accuracy of the decisions.

Comparative statements

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

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.
2) Comparative income statement.

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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.

COMMON SIZE STATEMENTS.

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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.

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


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

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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 year‟s 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)
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%

Less : cost of goods sold - - - -


(o.s+purchase-c.s)

Material consumed 7943.56 7705.45 -238.11 -2.99%

Less: manufacturing expenses(cost of


production) -8.4%
5864.92 5367.90 -497.02
Gross profit 2078.64 2337.55 258.91 12.45%

Less : operating expenses


1) administration expenses
2) selling & distribution expenses 2753.39 2845.53 92.14 3.34%

Operating loss 673.75 507.98 165.77 24.60%

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Add : non operating income


(Mkt assistance under deendayal 1429.67 799.81 -629.86 -44.05%
scheme, IHDS, Subsidy, other income,
profit on sale of assets etc. 755.92 291.83 464.09 61.39%

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to weavers, 655.54 582.66 -72.88 -11.11%
other charges.

Profit /loss 100.38 -290.83 -391.21 -38.72%

less: prior period adjustments. Tax,


bad debts etc. -92.99 +0.80 -92.19 -99.13%

Net profit/loss 7.39 -290.03 -297.42 -4026%

COMPARATIVE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 99-00, 00-01.

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(STATEMENT 2)

Particulars 1999-2000 2000-2001 Absolute Absolute


(In Lakhs) (In Lakhs) increase/decrease increase/decrease
in Rs in %
A) Net sales 7705.45 6017.77 -1687.68 -21.90%

Less : cost of goods sold - - - -


(o.s+purchase-c.s)
7705.45 6017.77 -1687.68 -21.90%
Material consumed

Less: manufacturing expenses(cost of


production)
5367.90 4619.93 -747.97 -13.93%
Gross profit 2337.55 1397.84 -939.71 -40%

Less : operating expenses


1) administration expenses 2845.53 2665.22 -180.31 -6.3%
2) selling & distribution expenses

Operating loss 507.98 1267.38 759.4 149%

Add : non operating income


(Mkt assistance under deendayal 799.81 1068.57 268.76 33.60%
scheme, IHDS, Subsidy, other income,
profit on sale of assets etc.
291.83 -198.81 -490.64 -168%

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to weavers, 582.66 602.19 19.53 3.35
other charges.

Profit /loss -290.83 -801.00 -1091.83 375.4%

less: prior period adjustments. Tax, +0.80 -152.65 -151.85 18981%


bad debts etc.

-290.03 -953.65 663.62 228.8%


Net profit/loss

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COMPARATIVE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 00-01, 01-02.

(STATEMENT 3)

Particulars 2000-2001 2001-2002 Absolute Absolute


(In Lakhs) (In Lakhs) increase/decrease increase/decrease
in Rs in %
A) Net sales 6017.77 9688.63 3670.86 61%
- 2573.66 2573.66 100%-
Less : cost of goods sold
(o.s+purchase-c.s)
6017.77 7114.97 1097.2 18.23%
Material consumed

Less: manufacturing expenses(cost of


production) 4619.93 4671.27 51.34 11.1%
1397.84 2443.7 1045.86 74.81%
Gross profit

Less : operating expenses


1) administration expenses 2665.22 3032.36 367.14 13.77%
2) selling & distribution expenses
1267.38 588.66 678.72 53.55%
Operating loss

Add : non operating income 1068.57 127.86 -940.71 -88.03%


(Mkt assistance under deendayal
scheme, IHDS, Subsidy, other income,
profit on sale of assets etc.
-198.81 -460.8 -261.99 13.17%

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to weavers, 602.19 628.55 26.36 4.37%
other charges.

loss
-801.00 -1089.35 -288.35 -35.99%

less: prior period adjustments. Tax,


bad debts etc. -152.65 -91.40 -61.25 40.12%
-953.65 -1180.75 -227.1 23.81%
Net profit/loss

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COMPARATIVE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 01-02, 02-03.

(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%

Less : cost of goods sold 2573.66 - - -


(o.s+purchase-c.s)
7114.97 4989.75 -2125.22 -29.86%
Material consumed

Less: manufacturing expenses(cost of


production) 4671.27 4863.52 192.25 4.11%
2443.7 126.23 -2317.47 94.83%
Gross profit

Less : operating expenses


1) administration expenses
2) selling & distribution expenses 3032.36 2645.98 -386.38 -12.74%

Operating loss 588.66 2519.75 1931.09 32.80%

Add : non operating income


(Mkt assistance under deendayal 127.86 1669.17 1541.31 120%
scheme, IHDS, Subsidy, other income,
profit on sale of assets etc.
-460.8 -850.58 389.78 84.58%

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to weavers, 628.55 622.26 -6.29 -1.00%
other charges.

loss
-1089.35 -1472.84 383.49 35.20%

less: prior period adjustments. Tax,


-91.40 9.74 -81.66 -89.34
bad debts etc.

-1180.75 1482.58 301.83 25.56%


Net profit/loss

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COMPARATIVE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 02-03, 03-04.

(STATEMENT 5)

Particulars 2002-2003 2003-2004 Absolute Absolute


(In Lakhs) (In Lakhs) increase/decrease increase/decrease
in Rs in %
A) Net sales 4989.75 8565.68 3575.93 71.66%
- 2441.55 2441.55 100%
Less : cost of goods sold
(o.s+purchase-c.s)
4989.75 6124.13 1134.38 22.73%
Material consumed

Less: manufacturing expenses(cost of


production)
4863.52 3342.10 -1521.42 -31.28%
Gross profit 126.23 2782.03 2655.8 21.03%

Less : operating expenses


1) administration expenses
2) selling & distribution expenses 2645.98 3031.93 385.95 14.58%

Operating loss 2519.75 249.9 -2269.85 -90.08%

Add : non operating income


(Mkt assistance under deendayal 1669.17 103.71 -1565.46 -93.78%
scheme, IHDS, Subsidy, other income,
profit on sale of assets etc.
-850.58 -146.19 -704.39 -82.81%

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to weavers, 622.26 482.67 -139.59 -22.43%
other charges.

loss

-1472.84 -628.86 -843.98 -57.30%

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less: prior period adjustments. Tax, 9.74 +289.88 280.14 287.6%


bad debts etc.

-1482.58 -338.98 -1143.6 -77.13%


Net profit/loss

COMPARATIVE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 03-04, 04-05.

(STATEMENT 6)

Particulars 2003-2004 2004-2005 Absolute Absolute


(In Lakhs) (In Lakhs) increase/decrease increase/decrease
in Rs in %
A) Net sales 8565.68 7643.44 -922.24 -10.76%
2441.55 566.40 -1875.15 -76.80%
Less : cost of goods sold
(o.s+purchase-c.s)
6124.13 7077.04 952.91 15.55%
Material consumed

Less: manufacturing expenses(cost of


production) 3342.10 4871.38 1529.28 45.75%

Gross profit 2782.03 2205.66 -576.37 -20.71%

Less : operating expenses


1) administration expenses
2) selling & distribution expenses 3031.93 2657.58 -374.35 -12.34%
249.9 451.92 202.02 80.84%
Operating loss

Add : non operating income


(Mkt assistance under deendayal 103.71 88.69 -15.02% -14.48%
scheme, IHDS, Subsidy, other income,
profit on sale of assets etc.
-146.19 -363.23 -217.04 -148.46%

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to weavers, 482.67 421.94 -60.73 -12.58%
other charges.

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loss
-628.86 -785.17 156.31 24.85%

less: prior period adjustments. Tax,


bad debts etc. +289.88 +227.37 -62.51 -21.56
-338.98 -557.80 217.82 64.25%

Net profit/loss

COMPARATIVE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 04-05, 05-06.

(STATEMENT 7)

Particulars 2004-2005 2005-2006 Absolute Absolute


(In Lakhs) (In Lakhs) increase/decrease increase/decrease
in Rs in %
A) Net sales 7643.44 6998.38 -645.06 -8.43%

566.40 - - -
Less : cost of goods sold
(o.s+purchase-c.s)
7077.04 6998.38 -645.06 -8.43%
Material consumed

Less: manufacturing expenses(cost of


production)
4871.38 5666.15 794.77 36.03%

2205.66 1332.23 -873.43 -39.59%


Gross profit

Less : operating expenses


1) administration expenses
2) selling & distribution expenses 2657.58 2455.14 -202.44 -7.6%

Operating loss 451.92 1122.91 670.99 148.47%

Add : non operating income


(Mkt assistance under deendayal 88.69 1012.75 924.06 1041.8%
scheme, IHDS, Subsidy, other income,

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profit on sale of assets etc. -363.23 110.16 -253.07 -69.67%

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to weavers, 421.94 460.83 61.11 14.48%
other charges.

loss -785.17 -570.99 -214.18 -27.27%

less: prior period adjustments. Tax,


bad debts etc. +227.37 +218.02 -9.35 -1.67%

Net profit/loss -557.80 -352.97 -204.83 -36.72%

COMPARATIVE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 05-06, 06-07.

(STATEMENT 8)

Particulars 2005-2006 2006-07 Absolute Absolute


(In Lakhs) increase/decrease increase/decrease
in Rs in %
A) Net sales 6998.38 8770.44 1772.06 25.32%
- 1178.00 1178.00 100%
Less : cost of goods sold
(o.s+purchase-c.s)

Material consumed 6998.38 7592.44 594.06 8.48%

Less: manufacturing expenses(cost of


production)
5666.15 5260.59 -405.56 -7.15%
Gross profit 1332.23 2331.85 999.62 75.03%

Less : operating expenses


1) administration expenses
2) selling & distribution expenses 2455.14 2414.4 -40.74 -1.65%

Operating loss 1122.91 82.55 -1040.36 -92.64%

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Add : non operating income


(Mkt assistance under deendayal 1012.75 634.12 -378.63 -37.38%
scheme, IHDS, Subsidy, other income,
profit on sale of assets etc.

110.16 551.57 441.41 400.69%


Less : non operating expenses.
Loss on sale of fixed assets,
modernization assistance to weavers, 460.83 521.52 60.69 13.16%
other charges.

loss

-570.99 30.05 -540.49 -94.65%


less: prior period adjustments. Tax,
bad debts etc. +218.02 +406.65 188.63 86.51%
-352.97 +436.70 83.73 23.72%

Net profit/loss

COMPARATIVE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 2006-07, 2007-08.

(STATEMENT 9)

Particulars 2006-07 2007-08 Absolute Absolute


increase/decrease in increase/decrease in
Rs %
A) Net sales 831873120 888789046 56975926 6.84%

Less : cost of goods sold (o.s+purchase- 117799842 - - -


c.s)

Material consumed 714073278 888789046 174715768 24.46%

Less: manufacturing expenses(cost of


production)
526022935 711302079 185279144 35.22%
Gross profit 188050343 177486967 (10563376) -5.61%

Less : operating expenses


1) administration expenses
2) selling & distribution expenses 196269257 249046416 52777159 26.89%

Operating loss (8218914) (71559449) 63340535 77.6%

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Add : non operating income 63412224 125458168 62045944 97.84%


(Mkt assistance under deendayal scheme,
IHDS, Subsidy, other income, profit on 55193310 53898719 (1294591) 2.34%
sale of assets etc.

Less : non operating expenses.


Loss on sale of fixed assets, modernization 52188710 50530934 (1657776) -3.17%
assistance to weavers, other charges.
3004600 3367785 363185 10.78%
Profit
413020104 8263076 (404757028) -97.99%
Add: previous year profit.

Net profit 44306704 11630861 (32675843) -73.74%

Less : interest - - - -

: bad debts - 1779000 1779000 100%


44306704 9851861 (3445843) -77.76%
Profit before tax

Less : fringe benefit tax 636628 611003 (25625) -4.02%

Profit after tax

43670075 9240858 (34429217) -78.83%

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.

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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.

COMPARATIVE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 1998-99 &99-00.

(STATEMENT 10)

PARTICULARS 1998-99 1999-00 INCREASE/DECREASE INCREASE/DECREASE


IN Rs IN %
current assets 6451.31 6578.36 127.05 1.96%

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Miscellaneous 119.53 119.53 - -


expenses

6570.84 6697.89 127.05 1.93%


A) Total current
assets
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities
6570.84 6697.89 127.05 1.93%
Working capital
C) = (A-B)
824.63 859.99 35.36 4.28%
D) Fixed assets

E) capital 7595.47 7557.88 -37.59 -4.9%


employed
E) =(C+D)

7877.21 8323.18 446 5.66%


Represented by
Share holders net
worth.

475.27 765.30 290.03 61.02%


Less: loss
(previous year)

7395.47 7557.88 -37.59 -4.9%


Capital employed

COMPARATIVE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 1999-00 &00-01.

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(STATEMENT 11)

PARTICULARS 1999-00 00-01. INCREASE/DECREASE INCREASE/DECREASE


IN Rs IN %
current assets 6578.36 5320.88 -1257.48 -19.11%

Miscellaneous 119.53 119.53 - -


expenses

A) Total current 6697.89 5440.41 -1257.48 -18.77%


assets
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities

Working capital 6697.89 5440.41 -1257.48 -18.77%


C) = (A-B)

D) Fixed assets 859.99 854.07 -5.92 -0.68%

E) capital 7557.88 6294.48 -1263.4 -16.71%


employed
E) =(C+D)

8323.18 8013.43 -309.75 -3.72%


Represented by
Share holders net
worth.

765.30 1718.95 953.65 124.61%


Less: loss
(previous year)

7557.88 6294.48 -1263.4 -16.71%


Capital employed

Babasabpatilfreepptmba.com Page 64
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

COMPARATIVE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 2000-01 &01-02.

(STATEMENT 12)

PARTICULARS 00-01. 01-02 INCREASE/DECREASE INCREASE/DECREASE


IN Rs IN %
current assets 5320.88 5559.43 238.55 4.48%

Miscellaneous 119.53 119.53 - -


expenses

A) Total current 5440.41 5678.96 238.55 4.38%


assets
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities

Working capital 5440.41 5678.96 238.55 4.38%


C) = (A-B)

D) Fixed assets 854.07 851.36 -2.71 -0.31%

E) capital 6294.48 6530.32 235.84 3.74%


employed
E) =(C+D)

8013.43 9430.02 1416.59 17.67%


Represented by
Share holders
net worth.

1718.95 2899.70 1180.75 68.69%


Less: loss
(previous year)

6294.48 6530.32 235.84 3.74%


Capital
employed

Babasabpatilfreepptmba.com Page 65
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

COMPARATIVE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 2001-02 &02-03.

(STATEMENT 13)

PARTICULARS 01-02 02-03 INCREASE/DECREASE INCREASE/DECREASE


IN Rs IN %
current assets 5559.43 4046.36 -1513.07 -27.21%

Miscellaneous 119.53 119.53 - -


expenses

A) Total current 5678.96 4165.89 -1513.07 -27.21%


assets
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities

Working capital 5678.96 4165.89 -1513.07 -27.21%


C) = (A-B)

D) Fixed assets 851.36 837.99 -13.37 -1.57%

E) capital 6530.32 5003.88 -1526.44 -23.37%


employed
E) =(C+D)

9430.02 9386.15 -43.87 -0.46%


Represented by
Share holders
net worth.

2899.70 4382.27 1482.57 51.12%


Less: loss
(previous year)
-1526.44 -23.37%

6530.32 5003.88
Capital
employed

Babasabpatilfreepptmba.com Page 66
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

COMPARATIVE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 2002-03 &03-04.

(STATEMENT 14)

PARTICULARS 02-03 03-04 INCREASE/DECREASE INCREASE/DECREASE


IN Rs IN %
current assets 4046.36 2919.71 -1126.65 -27.84%

Miscellaneous 119.53 119.53 - -


expenses

A) Total current 4165.89 3039.24 -1126.65 -27.84%


assets
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities

Working capital 4165.89 3039.24 -1126.65 -27.84%


C) = (A-B)

D) Fixed assets 837.99 808.93 -29.06 -3.46%

E) capital
employed 5003.88 3848.17 -1155.71 -23.09%
E) =(C+D)

9386.15 8569.43 -8.70%


Represented by -816.72
Share holders
net worth.

4382.27 4721.26 338.99 7.73%


Less: loss
(previous year)

-1155.71 -23.09%

5003.88 3848.17
Capital
employed

Babasabpatilfreepptmba.com Page 67
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

COMPARATIVE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 2003-04 &04-05.

(STATEMENT 15)

PARTICULARS 03-04 04-05 INCREASE/DECREASE INCREASE/DECREASE


IN Rs IN %
current assets 2919.71 2797.31 -122.4 -4.19%

Miscellaneous 119.53 543.89 424.36 35.0%


expenses

A) Total current 3039.24 3341.2 301.96 9.9%


assets
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities

Working capital 3039.24 3341.2 301.96 9.9%


C) = (A-B)

D) Fixed assets 808.93 798.45 -10.48 --1.29%

E) capital
employed 3848.17 4139.64 291.47 7.57%
E) =(C+D)

8569.43 9418.70 849.27 9.91%


Represented by
Share holders
net worth.

4721.26 5279.06 -557.8 11.81%


Less: loss
(previous year)

Babasabpatilfreepptmba.com Page 68
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

3848.17 4139.64 291.47 7.57%

Capital
employed

COMPARATIVE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 2004-05 &05-06.

(STATEMENT 16)

PARTICULARS 04-05 05-06 INCREASE/DECREASE INCREASE/DECREASE


IN Rs IN %
current assets 2797.31 7075.38 4278.07 152.93%

Miscellaneous 543.89 774.92 231.03 42.47%


expenses

A) Total current 3341.2 7850.3 4509.1 134.95


assets
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities

Working capital 3341.2 7850.3 4509.1 134.9%


C) = (A-B)

D) Fixed assets 798.45 849.49 51.04 6.39%

E) capital
employed 4139.64 8699.79 4560.15 110.15%
E) =(C+D)

9418.70 14331.82 4913.12 52.16%


Represented by
Share holders
net worth.

Babasabpatilfreepptmba.com Page 69
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

6.68%
5279.06 5632.03 352.97

Less: loss
(previous year)

4139.64 8699.79 4560.15 110.15%

Capital
employed

COMPARATIVE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 2005-06 &06-07.

(STATEMENT 17)

PARTICULARS 05-06 2006-07 INCREASE/DECREASE INCREASE/DECREASE


IN Rs IN %
current assets 7075.38 8056.58 981.2 13.86%

Miscellaneous 774.92 466.90 -308.02 -39.74%


expenses

A) Total current 7850.3 8529.74 679.71 8.65%


assets
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities

Working capital 7850.3 8529.74 679.71 8.65%


C) = (A-B)

D) Fixed assets 849.49 814.43 -35.06 -4.12%

E) capital 7.40%
employed 8699.79 9344.17 644.38
E) =(C+D)

Babasabpatilfreepptmba.com Page 70
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

14331.82 14539.50 207.68 1.44%


Represented by
Share holders
net worth.

5632.03 5195.33 -436.7 -7.7%


Less: loss
(previous year)
7.40%
8699.79 9344.17 644.38

Capital
employed

COMPARATIVE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 2006-07 &2007-08.

(STATEMENT 18)

PARTICULARS 2006-07 2007-08 INCREASE/DECREASE INCREASE/DECREASE


IN Rs IN %
current assets 805658393 919580314 113921921 14%

Miscellaneous 46689852 27841206 18848646 40%


expenses

A) Total current
assets 852348245 947421520 95073275 11%
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities

Babasabpatilfreepptmba.com Page 71
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

852348245 947421520 95073275 11%


Working capital
C) = (A-B)
82068782 80006106 (2062676) 2.5%
D) Fixed assets

E) capital
employed 934417027 1027427536 93010509 9.9%
E) =(C+D)
1453950330 1537720071 83769741 5.7%
Share capital

519533303 510292445 (9240858) -1.77%

Less: loss
(previous year)

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 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.

Babasabpatilfreepptmba.com Page 72
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

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.

COMMON SIZE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 1998-99 &99-00.

(STATEMENT 19)

PARTICULARS 1998-99 1999-00


Rs % Rs %
current assets 6451.31 87.97% 6578.36 87%

Miscellaneous 119.53 1.57% 119.53 1.7%


expenses

A) Total current 6570.84 89.54% 6697.89 88.7%


assets

Babasabpatilfreepptmba.com Page 73
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities
6570.84 89.54% 6697.89 88.7%
Working capital
C) = (A-B)

D) Fixed assets 824.63 10.46% 859.99 11.3%

E) capital 7595.47 100% 7557.88 100%


employed
E) =(C+D)

7877.21 106.42% 8323.18 110.2%


Represented by
Share holders net
worth.

475.27 6.42% 765.30 10.2%


Less: loss
(previous year)

7395.47 100% 7557.88 100%


Capital employed

COMMON SIZE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR 1999-00 &00-01.

(STATEMENT 20)

PARTICULARS 1999-00 00-01.


Rs % Rs %
current assets 6578.36 87% 5320.88 84.55%

Babasabpatilfreepptmba.com Page 74
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

Miscellaneous expenses 119.53 1.7% 119.53 1.89%

A) Total current assets


6697.89 88.7% 5440.41 86.44%
Less : C current liabilities
- - - -
B) Total current liabilities

- - - -

6697.89 88.7% 5440.41 86.44%


Working capital
C) = (A-B)
859.99 11.3% 854.07 13.56%
D) Fixed assets

7557.88 100% 6294.48 100%


E) capital employed
E) =(C+D)

8323.18 110.2% 8013.43 127.30%

Represented by Share holders


net worth.

765.30 10.2% 1718.95 27.30%


Less: loss (previous year)

7557.88 100% 6294.48 100%


Capital employed

COMMON SIZE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR


00-01 &01-02.

(STATEMENT 21)

PARTICULARS 00-01. 01-02

Babasabpatilfreepptmba.com Page 75
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

Rs % Rs %
current assets 5320.88 84.55% 5559.43 85.14%

Miscellaneous expenses 119.53 1.89% 119.53 1.83%

A) Total current assets 5440.41 86.44% 5678.96 86.97%

- - - -
Less : C current liabilities

B) Total current liabilities - - - -

Working capital 5440.41 86.44% 5678.96 86.97%


C) = (A-B)

D) Fixed assets 854.07 13.56% 851.36 13.03%

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%

Less: loss (previous year)


1718.95 27.30% 2899.70 44.40%

6294.48 100% 6530.32 100%


Capital employed

COMMON SIZE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR


Babasabpatilfreepptmba.com Page 76
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

01-02 &02-03.

(STATEMENT 22)

PARTICULARS 01-02 02-03


Rs % Rs %
5559.43 85.14% 4046.36 80.88%
current assets

Miscellaneous expenses 119.53 1.83% 119.53 2.38%

A) Total current assets 5678.96 86.97% 4165.89 83.26%

Less : C current liabilities - - - -

B) Total current liabilities - - - -

Working capital 5678.96 86.97% 4165.89 83.26%


C) = (A-B)

D) Fixed assets 851.36 13.03% 837.99 16.74%

E) capital employed 6530.32 100% 5003.88 100%


E) =(C+D)

Represented by Share 9430.02 144.40% 9386.15 187.57%


holders net worth.

Less: loss (previous year) 2899.70 44.40% 4382.27 87.57%

100%
6530.32 100% 5003.88
Capital employed

Babasabpatilfreepptmba.com Page 77
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

COMMON SIZE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR


02-03 &03-04.

(STATEMENT 23)

PARTICULARS 02-03 03-04


Rs % Rs %
4046.36 80.88% 2919.71 75.87%
current assets
119.53 2.38% 119.53 3.11%
Miscellaneous expenses

A) Total current assets 4165.89 83.26% 3039.24 78.98%

- - - -
Less : C current liabilities

- - - -
B) Total current liabilities

Working capital 4165.89 83.26% 3039.24 78.98%


C) = (A-B)

837.99 16.74% 808.93 21.02%


D) Fixed assets
100%
E) capital employed 5003.88 3848.17
E) =(C+D) 100%

9386.15 187.57% 8569.43


Represented by Share 222.68%
holders net worth.

Less: loss (previous year) 4382.27 87.57% 4721.26 122.68%

100%
5003.88 3848.17 100%
Capital employed

Babasabpatilfreepptmba.com Page 78
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

COMMON SIZE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR


03-04 &04-05.

(STATEMENT 24)

PARTICULARS 03-04 04-05


Rs % Rs %
2919.71 75.87% 2797.31 67.59%
current assets
119.53 3.11% 543.89 13.13%
Miscellaneous expenses

A) Total current assets 3039.24 78.98% 3341.2 80.72%

- - - -
Less : C current liabilities

- - - -
B) Total current liabilities

Working capital 3039.24 78.98% 3341.2 80.72%


C) = (A-B)

808.93 21.02% 798.45 19.28%


D) Fixed assets
100%
3848.17 4139.64
E) capital employed 100%
E) =(C+D)
8569.43 9418.70 227.52%
222.68%
Represented by Share
holders net worth.

4721.26 122.68% 5279.06 127.52%


Less: loss (previous year)

3848.17 4139.64
100%
100%
Capital employed

Babasabpatilfreepptmba.com Page 79
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

COMMON SIZE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR


04-05 &05-06.

(STATEMENT 25)

PARTICULARS 04-05 05-06


Rs % Rs %
2797.31 67.59% 7075.38 81.34%
current assets
543.89 13.13% 774.92 8.90%
Miscellaneous expenses

3341.2 80.72% 7850.3 90.24%


A) Total current assets
- - - -
Less : C current liabilities

- - - -
B) Total current liabilities

Working capital 3341.2 80.72% 7850.3 90.24%


C) = (A-B)

798.45 19.28% 849.49 9.76%


D) Fixed assets
100% 100%
4139.64 8699.79
E) capital employed
E) =(C+D)
9418.70 227.52% 14331.82 164.73%
Represented by Share
holders net worth.

64.73%

5279.06 127.52% 5632.03


Less: loss (previous year)

Babasabpatilfreepptmba.com Page 80
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

100%
4139.64 8699.79
100%

Capital employed

COMMON SIZE STATEMENT OF K.H.D.C.L.td.


FOR THE YEAR 05-06,06-07

(STATEMENT 26)

PARTICULARS 05-06 2006-07


Rs % Rs %
current assets 7075.38 81.33% 8056.58 86.29%

Miscellaneous 774.92 8.9% 466.90 4.99%


expenses

A) Total current 7850.3 90.23% 8529.74 91.28%


assets
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities

Working capital 7850.3 90.23% 8529.74 91.28%


C) = (A-B)

D) Fixed assets 849.49 9.76% 814.43 8.71%

E) capital
employed 8699.79 100% 9344.17 100%
E) =(C+D)

14331.82 +164.73% 14539.50 +155.59


Represented by
Share holders
net worth.

Babasabpatilfreepptmba.com Page 81
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

5632.03 -64.73% 5195.33 -55.59%

Less: loss
(previous year)

8699.79 100% 9344.17 100%

Capital
employed

Common size balance sheet of K.H.D.C.L.td for the year .2006-07 ,2007-08.

(STATEMENT 27)

PARTICULARS 2006-07 2007-08

Rs Percentage Rs Percentage

current assets 805658393 86.22% 919580314 89.50%

Miscellaneous 46689852 4.99% 27841206 2.70


expenses

A) Total current
assets 852348245 91.21% 947421520 92.2%
- - - -
Less : C current
liabilities
- - - -
B) Total current
liabilities

Working capital 852348245 91.21% 947421520 92.2%


C) = (A-B)

D) Fixed assets 82068782 8.78 80006106 7.78%

Babasabpatilfreepptmba.com Page 82
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

E) capital 100%
employed 934417027 1027427536 100%
E) =(C+D)

1453950330 155. 1537720071 149.66%


Share capital

519533303 55.59% 510292445 49.66%

Less: loss
(previous year)

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 2007 2008 ASSETS 2007 2008


Rs Rs Rs Rs
Particulars % % Particulars % %
A) share holders funds Application of
the funds.

i) share capital 443820700 30.52 443820700 28.86 A) Fixed assets 81442782 5.61 79380106 5.16

306032734 21.04 370158685 24.07 B) investments 626000 0.04 626000 0.04


ii)Reserve & surplus
27655638 1.90 26221647 1.70 C) Net current 805658393 55.41 919580314 59.80
iii) Deferred government assets
grant
D)Miscellaneou 46689852 3.21 27841206 1.81
B)Loan funds s expenses
496413367 34.4 511532656 33.28
i) Secured loans E) Profit & loss 519533303 35.73 510292445 33.19
180027891 12.14 185986383 12.09 A/c
ii) unsecured loans

TOTAL 1453950330 100 1537720071 100 TOTAL 1453950330 100 1537720071 100

Babasabpatilfreepptmba.com Page 83
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

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.
Babasabpatilfreepptmba.com Page 84
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

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

Babasabpatilfreepptmba.com Page 85
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

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…

COMMON SIZE INCOME STATEMENT FOR THE YEAR 1998-99.

(STATEMENT 29)

Particulars 1998-99(In Lakhs) 1999-2000(In Lakhs)

Rs %
A) Net sales 7943.56 100% 7705.45 100%

Less : cost of goods sold - - - -


(o.s+purchase-c.s)
7943.56 - 7705.45 -
Material consumed

Babasabpatilfreepptmba.com Page 86
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

Less: manufacturing expenses(cost


of production) 5864.92 -73.83% 5367.90 -69.66%
2078.64 +26.16% 2337.55 +30.33%
Gross profit

Less : operating expenses


1) administration expenses
2753.39 -34.06% 2845.53 -38.92%
2) selling & distribution expenses
673.75 -8.48% 507.98 -7.59%
Operating loss

Add : non operating income 1429.67 +17.07% 799.81 +11.37%


(Mkt assistance under deendayal
scheme, IHDS, Subsidy, other
income, profit on sale of assets etc.
755.92 -9.5 291.83 -4.78%

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to 655.54 -8.25% 582.66 -9.23%
weavers, other charges.

Profit /loss
100.38 +1.26% -290.83 -4.77%

less: prior period adjustments. -92.99 -1.17 +0.80 +0.01%


Tax, bad debts etc.

7.39 +0.09 -290.03 -4.76%


Net profit/loss

COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 99-00, 00-01.

(STATEMENT 30)

Particulars 1999-2000(In Lakhs) 2000-2001(In Lakhs)

Rs % Rs %
A) Net sales 7705.45 100% 6017.77 100%

Less : cost of goods sold - - - -


(o.s+purchase-c.s)

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

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

Less : operating expenses


1) administration expenses
2) selling & distribution 2845.53 -38.92% 2665.22 -44.28
expenses
507.98 -7.59% 1267.38 -21.06
Operating loss

Add : non operating income 799.81 +11.37% 1068.57 +17.75%


(Mkt assistance under
deendayal scheme, IHDS,
Subsidy, other income, profit on
sale of assets etc.
291.83 -4.78% -198.81 -3.30%

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to 582.66 -9.23% 602.19 -10%
weavers, other charges.

Profit /loss
-290.83 -4.77% -801.00 -13.3%

less: prior period adjustments.


Tax, bad debts etc. +0.80 +0.01% -152.65 -2.53%
-290.03 -4.76% -953.65 -15.84%

Net profit/loss

COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 00-01, 01-02.

(STATEMENT 31)

Particulars 2000-2001(In Lakhs) 2001-2002(In Lakhs)

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

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

Operating loss 1267.38 -21.06 588.66 -6.07%

Add : non operating


income 1068.57 +17.75% 127.86 +1.31%
(Mkt assistance under
deendayal scheme,
IHDS, Subsidy, other
income, profit on sale of
assets etc.
-198.81 -3.30% -460.8 -4.75%

Less : non operating


expenses.
Loss on sale of fixed 602.19 -10% 628.55 -6.48%
assets, modernization
assistance to weavers,
other charges.

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.

-953.65 -15.84% -1180.75 -12.18%


Net profit/loss

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

COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 01-02, 02-03.

(STATEMENT 32)

Particulars 2001-2002(In Lakhs) 2002-2003(In Lakhs)

Rs % Rs %
A) Net sales 9688.63 100% 4989.75 100%

Less : cost of goods sold 2573.66 -26.56% - -


(o.s+purchase-c.s)
7114.97 73.43% 4989.75 -
Material consumed

Less: manufacturing
expenses(cost of production) 4671.27 -48.21% 4863.52 -97.47%
Gross profit 2443.7 25.22% 126.23 2.53%

Less : operating expenses


1) administration expenses
2) selling & distribution 3032.36 -31.29% 2645.98 -53.02%
expenses
588.66 -6.07% 2519.75 -50.49%
Operating loss

Add : non operating income


(Mkt assistance under 127.86 +1.31% 1669.17 +33.45%
deendayal scheme, IHDS,
Subsidy, other income, profit
on sale of assets etc.
-460.8 -4.75% -850.58 -17.04%

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to 628.55 -6.48% 622.26 -12.46%
weavers, other charges.

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

Babasabpatilfreepptmba.com Page 90
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 02-03, 03-04.

(STATEMENT 33)

Particulars 2002-2003(In Lakhs) 2003-2004(In Lakhs)

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%

Less : operating expenses


1) administration expenses
2) selling & distribution 2645.98 -53.02% 3031.93 -35.39%
expenses

Operating loss 2519.75 -50.49% 249.9 -2.91%

Add : non operating income


(Mkt assistance under
deendayal scheme, IHDS, 1669.17 +33.45% 103.71 +1.21%
Subsidy, other income, profit
on sale of assets etc.
-850.58 -17.04% -146.19 -1.70%

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to 622.26 -12.46% 482.67 -5.63%
weavers, other charges.

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

COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 03-04, 04-05.

(STATEMENT 34)

Particulars 2003-2004(In Lakhs) 2004-2005(In Lakhs)

Rs % Rs %
A) Net sales 8565.68 100% 7643.44 100%

Less : cost of goods sold 2441.55 -28.50% 566.40 -7.41%


(o.s+purchase-c.s)
6124.13 71.50% 7077.04 92.59%
Material consumed

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

Operating loss 249.9 -2.91% 451.92 -5.91%

Add : non operating income 103.71 +1.21% 88.69 +1.16%


(Mkt assistance under
deendayal scheme, IHDS,
Subsidy, other income, profit
on sale of assets etc.

-146.19 -1.70% -363.23 -4.75%


Less : non operating
expenses.
Loss on sale of fixed assets, 482.67 -5.63% 421.94 -5.51%
modernization assistance to
weavers, other charges.

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

COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 04-05, 05-06.

(STATEMENT 35)

Particulars 2004-2005(In Lakhs) 2005-2006(In Lakhs)

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%

Less : operating expenses


1) administration expenses
2) selling & distribution 2657.58 -34.76% 2455.14 -35.13%
expenses

Operating loss 451.92 -5.91% 1122.91 -16.04%

Add : non operating income


(Mkt assistance under 88.69 +1.16% 1012.75 +14.47%
deendayal scheme, IHDS,
Subsidy, other income, profit
on sale of assets etc.
-363.23 -4.75% 110.16 -1.57%

Less : non operating


expenses.
Loss on sale of fixed assets, 421.94 -5.51% 460.83 -6.58%
modernization assistance to
weavers, other charges.

loss
-785.17 -10.27% -570.99 -8.15%

Babasabpatilfreepptmba.com Page 93
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

less: prior period +227.37 +2.97% +218.02 +3.11%


adjustments. Tax, bad debts
etc.
-557.80 -7.29% -352.97 -5.04%

Net profit/loss

COMM0N SIZE INCOME STATEMENT OF K.H.D.C.L.TD FOR THE YEAR 05-06,06-07

(STATEMENT 36)

Particulars 2005-2006(In Lakhs) 2006-07( In Lakhs)

Rs % Rs %
A) Net sales 6998.38 100% 8770.44 100

Less : cost of goods sold (o.s+purchase-c.s) - - 1178.00 -14.16


- 85.83
Material consumed 6998.38 7592.44
Less: manufacturing expenses(cost of
production)
5666.15 80.96% 5260.59 -63.23
1332.23 19.04% 2331.85 22.60
Gross profit

Less : operating expenses


1) administration expenses
2) selling & distribution expenses 2455.14 -35.13% 2414.4 -23.59

Operating loss 1122.91 -16.04% 82.55 -0.98

Add : non operating income


(Mkt assistance under deendayal scheme,
IHDS, Subsidy, other income, profit on sale 1012.75 +14.47% 634.12 7.62
of assets etc.

110.16 -1.57% 551.57 6.63


Less : non operating expenses.
Loss on sale of fixed assets, modernization
assistance to weavers, other charges. 460.83 -6.58% 521.52
-6.27

Babasabpatilfreepptmba.com Page 94
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

Loss/ profit -570.99 -8.15% 30.05 0.34%

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

COMMON SIZE INCOME STATEMENT OF K.H.D.C.L.td. 2006-07, 2007-08.

(STATEMENT 37)

Particulars 2006-07 2007-08


Rs percentage Rs Percentage
A) Net sales 831873120 100 888789046 100

Less : cost of goods sold 117799842 14.16 - -


(o.s+purchase-c.s)

Material consumed 714073278 85.83 888789046 100


Less: manufacturing expenses(cost
of production)
526022935 63.23 711302079 80.03
Gross profit 188050343 22.60 177486967 19.96

Less : operating expenses


1) administration expenses 196269257 23.59 249046416 28.02
2) selling & distribution expenses

Operating loss (8218914) -0.98 (71559449) -8.05

Add : non operating income


(Mkt assistance under deendayal 63412224 7.62 125458168 14.11
scheme, IHDS, Subsidy, other
income, profit on sale of assets etc.
55193310 6.63 53898719 6.06

Less : non operating expenses.


Loss on sale of fixed assets,
modernization assistance to weavers,
other charges. 52188710 6.27 50530934 5.68

Profit 3004600 0.36 3367785 0.37

Babasabpatilfreepptmba.com Page 95
“ANALYSIS AND INTERPRETATION OF 10 YEARS FINANCIAL
STATEMENTS OF K.H.D.C.L.td.”

413020104 49.64 8263076 0.92


Add: previous year profit.
44306704 5.32 11630861 1.30
Net profit
- - - -
Less : interest - - 1779000 0.20

bad debts 44306704 5.32 9851861 1.10

Profit before tax


636628 0.07 611003 0.06

Less : fringe benefit tax


43670075 4.97 9240858 1.03%

Profit after tax

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

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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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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.

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

12000 1998-99
CAPITAL EMPLOYED

10000 1999-00 1998-99 7395.47


2000-01 1999-00 7557.88
8000
2001-02 2000-01 6294.48
6000 2001-02 6530.32
2002-03
4000 2002-03 5003.88
2003-04 2003-04 3848.17
2000 2004-05 2004-05 3786.64
0 2005-06 2005-06 8699.79
1 2006-07 2006-07 9344.17
YEARS
2007-08 10274.27
2007-08

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.

YEARS ACCUMULATED LOSS


ACCUMULATED LOSS OF K.H.D.C.L.td 1998-99 475.27
1999-00 765.3
6000 1998-99 2000-01 1718.95
ACCUMULATED LOSS

1999-00 2001-02 2899.7


5000
2002-03 4382.27
2000-01
4000 2003-04 4721.26
2001-02 2004-05 5279.06
3000
2002-03 2005-06 5632.03
2000 2006-07 5195.33
2003-04
1000 2007-08 5102.93
2004-05
0 2005-06
YEARS 2006-07
YEARS 2007-08

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.

NET PROFIT OR LOSS OF K.H.D.C.Ltd

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

Babasabpatilfreepptmba.com Page 99
“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

5) Administration expenses of K.H.D.C.L.td was on an average of 1868lakhs.and more than that.

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

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

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

Babasabpatilfreepptmba.com Page 101


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

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.

NET CURRENT ASSETS OF K.H.D.C.L.td.


NET CURRENT
YEARS ASSETS
10000
1998-99 1998-99 6451.31
NET CURRENT ASSETS

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

REVENUE FROM OTHER SOURCESOF


K.H.D.C.L.td
Revenue from
YEARS other sources
1200 1998-99
1998-99 106.69
1999-00
revenue from other

1000 1999-00 123.4


800 2000-01 2000-01 120.42
sources

2001-02 2001-02 127.86


600
2002-03 2002-03 122.75
400 2003-04 103.71
2003-04
200 2004-05 2004-05 88.69
0 2005-06 2005-06 475.38
YEARS 2006-07 634.12
2006-07
2007-08 1051.6
years 2007-08

CHART 8

Babasabpatilfreepptmba.com Page 102


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

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

7000 2005-06 5666.15


1999-00 2006-07 5260.59
6000
2000-01 2007-08 7113.15
5000
2001-02
4000
2002-03
3000
2003-04
2000
2004-05
1000
2005-06
0
2006-07
YEARS
2007-08
YEARS

CHART 9

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

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

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

providing the employment opportunities and social well fare to the weavers.
Therefore weavers‟ production efficiency is not being up to the mark

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

SUGGESTIONS

1) K.H.D.C.L.td operating loss can be reduced by establishing the production,


quality control lab, show rooms in very nearer places.

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.

3) 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.

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

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 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..

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

Financial Management
By M.L.Guledgudd

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

KARNATAKA HANDLOOM DEVELOPMENT CORPORATION LIMTED


BALANCE SHEET AND PROFIT AND LOSS STATEMENTS
Particulars 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08
Funds employed own
funds.

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(-)

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