a project report on analysis and interpretation of 10 years financial statements

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

Contents

TitlesChapter 1 Executive summary

Chapter 2Industrial profile Company profile Organization structure Chapter 3Design 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 4Financial analysis

Introduction to study Comparative statements Common size statements

Chapter 5Data analysis And interpretation

Comparative income statement Comparative balance sheet Common size balance sheet Common size income statement

Chapter 6FINDING

SUGGESTIONS

Chapter 7CONCLUSIONS

Chapter 8Bibilography

Chapter 9Annexure

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Sl.No Name of the Statement1 Comparative income statement 98-99, 99-002 Comparative income statement 99-00, 00-013 Comparative income statement 00-01, 01-024 Comparative income statement 01-02, 02-035 Comparative income statement 02-03, 03-046 Comparative income statement 03-04, 04-057 Comparative income statement 04-05, 05-068 Comparative income statement 05-06, 06-07 9 Comparative income statement 06-07, 07-0810 Comparative balance sheet 98-99, 99-0011 Comparative balance sheet 99-00, 00-0112 Comparative balance sheet 00-01, 01-0213 Comparative balance sheet 01-02, 02-0314 Comparative balance sheet 02-03, 03-0415 Comparative balance sheet 03-04, 04-0516 Comparative balance sheet 04-05, 05-0617 Comparative balance sheet 05-06, 06-0718 Comparative balance sheet 06-07, 07-0819 Common size balance sheet 98-99, 99-0020 Common size balance sheet 99-00, 00-0121 Common size balance sheet 00-01, 01-0222 Common size balance sheet 01-02, 02-0323 Common size balance sheet 02-03, 03-0424 Common size balance sheet 03-04, 04-0525 Common size balance sheet 04-05, 05-0626 Common size balance sheet 05-06, 06-0727 Common size balance sheet 06-07, 07-0828 Common size balance sheet 06-07, 07-08(horizontal)29 Common size income statement 98-99, 99-0030 Common size income statement 99-00, 00-0131 Common size income statement 00-01, 01-0232 Common size income statement 01-02, 02-0333 Common size income statement 02-03, 03-0434 Common size income statement 03-04, 04-0535 Common size income statement 04-05, 05-0636 Common size income statement 05-06,06-0737 Common size income statement 06-07, 07-08



List of charts

Chart no Name of charts1 Chart on capital employed2 Chart on accumulated loss3 Chart on net profit or loss4 Chart on sales5 Chart on administration expenses6 Chart on fixed assets7 Chart on net current assets8 Chart on revenue from other sources9 Chart on cost of production



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 STUDY1) 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.

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.



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.


http://en.wikipedia.org/wiki/India


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

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



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



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.

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

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.

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.

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.



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. 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.,

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.

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 :[email protected]

PRODUCTS: COTTON MULTI THREAD BED SHEETS PLAIN TOWELS, NAPKINS

PLAIN BED SHEETS, CARPET TARKISH TOWELS, DHOTIS

POLYSTER SARI, DRILL CLOTH, COTTON SARI


ASSISTANT ACCOUNTING OFFICER

ACCOUNTANT

PURCHASEDEPARTEMENT

PROJECT INSPECTOR

SENIOR ACCOUNT MANAGER

PRODUCTION MANAGER

(SILK)

ASSISTANTS

WEAVERS


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


CHAIRMAN/BOARD

MANAGING DIRECTOR

PRODUCTION DEPARTEMENT

QUALITY CONTROL

DEPARTEMENT

MARKETING DEPARTEMENT

FINANCE DEPARTEMENT

HUMAN RESOURCE

DEPARTEMENT

PRODUCTION MANAGER (COTTON)

(BANGALORE)

JOINT DIRECTIOR

PERSONNAL OFFICER

ASSISTANT PERSONNAL

OFFICER

ASSISTANT/CLERK

FINANCE CONTROLLER

ACCOUNT MANAGER

SALES MANAGER

ASSISTANT SALES MANAGER, GRADE-1

ASSISTANT SALES MANAGER, GRADE-2

TECHNICAL OFFICER

ASSISTANT TECHNICAL

OFFICER

PRODUCTIONMANAGER (HUBLI)

PROJECTADMINISTOR /TECHNICAL

PROJECT INSPECTOR /ASSISTANT TECHNICAL OFFICER


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.



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.



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.



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.

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.



OBJECTIVES OF PRODUCTION DEPARTEMENT.

a) maintain a good quality in a production

b) Try to timely delivery of products.


PROJECT ADMINSTRATOR

TECHNICAL OFFICER

ASSISTANT TECHNICAL OFFICER /PROJECT TRANSMITTOR

UNIT SUPERVISORS

WEAVERS

HELPERS

CHEAP MANAGER OF PRODUCTION


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.

FLOW CHART OFPRODUCTION DEPARTEMENT .



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

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.


Receiving the grey yarn

Dyeing the yarn

Pre-pretary work

Weaving

Packing

Warehouse


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.

(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.

(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.

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 2006-07VARIETY (In Lakh ) In Lakh

Rs)(In Lakh ) In Lakh

Rs)Silk 1.99 435.91 1.68 379.69Janatha varieties 11.32 233.98 13.80 257.33Non janatha varieties 42.97 917.61 40.53 905.43Polyester 52.55 1663.43 51.35 1624.32TOTAL 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

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

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

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 538.85 551.57Interest and depreciation 505.17 521.52Proffit for the year 33.68 30.05Prior period adjustement /FBT (+) 58.73 (+) 406.65Net 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

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.

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,

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.

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 products

Production per day

Wages in Rs per meters.

Production per month

Income per month

1 Bed sheet 3 meters 10.50 90 meters 9452 Tarkee towel 2 meters 20 60 meters 12003 Polyester sari 9 meters 11.50 300 meters 34504 Cotton sari 7 meters 10 240 meters 24005 Casement

cloth5 meters 7.50 120 meters 900

6 Drill cloth 4 meters 10.50 120 meters 12607 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

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

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.

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.

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


SEGMENTS 2006-07Rs in Lakhs)

2007-08(Rs in Lakhs)

Retail sales 1496.27 1693.07Wholesale sales 679.09 1410.07

S.S.D.S 561.85 359.03V.V.Scheme 561.85 359.03Other sales 22.16 51.36

Total 8770.44 9481.09Less Discount/Rebate 451.71 593.20

Total 8318.73 8887.89


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.

Yarn testing Laboratories consists the following machines.


MANAGER OF QUALITY CONTROL

ASSISTANT TECHNICAL OFFICER

PROJEC INSPECTOR

TECHNICAL OFFICER


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.

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.


Quality control machine

C.S.P. Machine(Count Strength Product)

Checks the measure of the product.


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 weavers

4163.71 384409 2798.34 2255.15 2753.98 2709.28 2111.22 2531.27 2182.40 2247.41

INTRODUCTION TO THE STUDY.

The K.H.D.C.L.td. is the manufacturing unit, engaged in procurement of the

cloth and manufacturing of cloth products such as drill cloth, lungi, sari, etc. It is

undertaking lot of activities to support the weavers who are the main producers of

clothes.

The study is involves financial analysis and interpretation of K.H.D.C.L.TD. it

compares the financial statements of K.H.D.C.L.td for 2 years namely 2006-07, 2007-08. To



know the how earnings, expenses, working capital, production, sales etc are hoe much

increased or decreased during these two years.

OBJECTIVES OF THE STUDY.

1) To know the financial status, long term financial position of K.H.D.C.L.td through

comparative balance sheet.

2) To know the growth rate in profit, expenses, cost of goods sold through comparative income

statement.

3) To know the proportion of various elements of income statement items to the total sales

revenue of K.H.D.C.L.td through common size income statement.

4) To know the proportion of various elements of balance sheet items to the total capital

employed of K.H.D.C.L.td through common size balance sheet.

5) To know the relationships among the groups either for decisions or for future prediction

through analysis of these two years financial statements.

6) To know the progress, efficiency, paying capacity of the firm from the interpretation of these

two years financial statements.

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.

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:

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.

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

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.

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.

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

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(In Lakhs)

1999-2000(In Lakhs)

Absolute increase/decrease

in Rs


in %A) Net sales

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

Material consumed

Less: manufacturing expenses(cost of production)

Gross profit

Less : operating expenses1) administration expenses2) selling & distribution expenses

Operating loss

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

7943.56 7705.45 -238.11 -2.99%

- - - -

7943.56 7705.45 -238.11 -2.99%

5864.92 5367.90 -497.02-8.4%

2078.64 2337.55 258.91 12.45%

2753.39 2845.53 92.14 3.34%

673.75 507.98 165.77 24.60%

1429.67 799.81 -629.86 -44.05%

755.92 291.83 464.09 61.39%

Less : non operating expenses.Loss on sale of fixed assets, modernization assistance to weavers, other charges.

Profit /loss

less: prior period adjustments. Tax, bad debts etc.

Net profit/loss

655.54 582.66 -72.88 -11.11%

100.38 -290.83 -391.21 -38.72%

-92.99 +0.80 -92.19 -99.13%

7.39 -290.03 -297.42 -4026%


(STATEMENT 2)


2000-2001(In Lakhs)


in Rs


in %A) Net sales


Material consumed


Gross profit


Operating loss


7705.45 6017.77 -1687.68 -21.90%

- - - -

7705.45 6017.77 -1687.68 -21.90%

5367.90 4619.93 -747.97 -13.93%2337.55 1397.84 -939.71 -40%

2845.53 2665.22 -180.31 -6.3%

507.98 1267.38 759.4 149%

799.81 1068.57 268.76 33.60%

291.83 -198.81 -490.64 -168%


Profit /loss


Net profit/loss

582.66 602.19 19.53 3.35

-290.83 -801.00 -1091.83 375.4%

+0.80 -152.65 -151.85 18981%

-290.03 -953.65 663.62 228.8%




(STATEMENT 3)


2001-2002(In Lakhs)


in Rs


in %A) Net sales


Material consumed


Gross profit


Operating loss


6017.77 9688.63 3670.86 61%

- 2573.66 2573.66 100%-

6017.77 7114.97 1097.2 18.23%

4619.93 4671.27 51.34 11.1%1397.84 2443.7 1045.86 74.81%

2665.22 3032.36 367.14 13.77%

1267.38 588.66 678.72 53.55%

1068.57 127.86 -940.71 -88.03%

-198.81 -460.8 -261.99 13.17%


loss


Net profit/loss

602.19 628.55 26.36 4.37%

-801.00 -1089.35 -288.35 -35.99%

-152.65 -91.40 -61.25 40.12%

-953.65 -1180.75 -227.1 23.81%




(STATEMENT 4)Particulars 2001-2002

(In Lakhs)2002-2003(In Lakhs)

Absolute increase/decrease in Rs

Absolute increase/decrease in %

A) Net sales


Material consumed


Gross profit


Operating loss


9688.63 4989.75 -4698.88 48.49%

2573.66 - - -

7114.97 4989.75 -2125.22 -29.86%

4671.27 4863.52 192.25 4.11%2443.7 126.23 -2317.47 94.83%

3032.36 2645.98 -386.38 -12.74%

588.66 2519.75 1931.09 32.80%

127.86 1669.17 1541.31 120%

-460.8 -850.58 389.78 84.58%


loss


628.55 622.26 -6.29 -1.00%

-1089.35 -1472.84 383.49 35.20%

-91.40 9.74 -81.66 -89.34



Net profit/loss

-1180.75 1482.58 301.83 25.56%


(STATEMENT 5)


2003-2004(In Lakhs)


in Rs


in %A) Net sales


Material consumed


Gross profit


Operating loss


4989.75 8565.68 3575.93 71.66%

- 2441.55 2441.55 100%

4989.75 6124.13 1134.38 22.73%

4863.52 3342.10 -1521.42 -31.28%126.23 2782.03 2655.8 21.03%

2645.98 3031.93 385.95 14.58%

2519.75 249.9 -2269.85 -90.08%

1669.17 103.71 -1565.46 -93.78%

-850.58 -146.19 -704.39 -82.81%


622.26 482.67 -139.59 -22.43%



loss


Net profit/loss

-1472.84 -628.86 -843.98 -57.30%

9.74 +289.88 280.14 287.6%

-1482.58 -338.98 -1143.6 -77.13%


(STATEMENT 6)


2004-2005(In Lakhs)


in Rs


in %A) Net sales


Material consumed


Gross profit


Operating loss


8565.68 7643.44 -922.24 -10.76%2441.55 566.40 -1875.15 -76.80%

6124.13 7077.04 952.91 15.55%

3342.10 4871.38 1529.28 45.75%

2782.03 2205.66 -576.37 -20.71%

3031.93 2657.58 -374.35 -12.34%

249.9 451.92 202.02 80.84%

103.71 88.69 -15.02% -14.48%

-146.19 -363.23 -217.04 -148.46%




loss


Net profit/loss

482.67 421.94 -60.73 -12.58%

-628.86 -785.17 156.31 24.85%

+289.88 +227.37 -62.51 -21.56

-338.98 -557.80 217.82 64.25%


(STATEMENT 7)


2005-2006(In Lakhs)


in Rs


in %A) Net sales


Material consumed


Gross profit


7643.44 6998.38 -645.06 -8.43%

566.40 - - -

7077.04 6998.38 -645.06 -8.43%

4871.38 5666.15 794.77 36.03%

2205.66 1332.23 -873.43 -39.59%

2657.58 2455.14 -202.44 -7.6%

451.92 1122.91 670.99 148.47%



Operating loss


88.69 1012.75 924.06 1041.8%

-363.23 110.16 -253.07 -69.67%


loss


Net profit/loss

421.94 460.83 61.11 14.48%

-785.17 -570.99 -214.18 -27.27%

+227.37 +218.02 -9.35 -1.67%

-557.80 -352.97 -204.83 -36.72%


(STATEMENT 8)


2006-07 Absolute increase/decrease

in Rs


in %A) Net sales


Material consumed


6998.38 8770.44 1772.06 25.32%

- 1178.00 1178.00 100%

6998.38 7592.44 594.06 8.48%

5666.15 5260.59 -405.56 -7.15%1332.23 2331.85 999.62 75.03%



Gross profit


Operating loss


2455.14 2414.4 -40.74 -1.65%

1122.91 82.55 -1040.36 -92.64%

1012.75 634.12 -378.63 -37.38%

110.16 551.57 441.41 400.69%


loss


Net profit/loss

460.83 521.52 60.69 13.16%

-570.99 30.05 -540.49 -94.65%

+218.02 +406.65 188.63 86.51%

-352.97 +436.70 83.73 23.72%


(STATEMENT 9)

Particulars 2006-07 2007-08 Absolute increase/decrease in

Rs

Absolute increase/decrease in

%A) Net sales


Material consumed

Less: manufacturing expenses(cost of

831873120 888789046 56975926 6.84%

117799842 - - -

714073278 888789046 174715768 24.46%



production)

Gross profit


Operating loss


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

196269257 249046416 52777159 26.89%

(8218914) (71559449) 63340535 77.6%

63412224 125458168 62045944 97.84%

55193310 53898719 (1294591) 2.34%


Profit

Add: previous year profit.

Net profit

Less : interest

: bad debts

Profit before tax

Less : fringe benefit tax

Profit after tax

52188710 50530934 (1657776) -3.17%

3004600 3367785 363185 10.78%

413020104 8263076 (404757028) -97.99%

44306704 11630861 (32675843) -73.74%

- - - -

- 1779000 1779000 100%

44306704 9851861 (3445843) -77.76%

636628 611003 (25625) -4.02%

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 of4.11% in the year 02-03.for the year 03-04 it was again decreased at the rate of -31.28%.but it was rise in the next year also except the year 06-07 at the rate of -7.15%.It was increase in the years 04-05, 05-06, 07-08 at the rate of 45.75%, 36.03%, 35.22% respectively.

3) Gross profit of K.H.D.C.L.td are rise in the years 99-00 12.45%, 01-02 74.81%, 03-04 21.03%, 06-07 75.03%. Compare to its previous years. And fall in the years 00-01 -40%, 02-03 -94.83%, 04-05 -20.71%, 05-06 -39.59% 07-08 -5.61% Compare to its previous years. Due to rise in manufacturing expenses.

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 of33.60%, 120%, 1041.8%, 97.84%.compare to its previous years due to sale of fixed assets, govt assistance etc and Fall in the year 99-00, 01-02, 03-04, 04-05, 06-07 at -44.05%, -88.03%.-93.78%,-14.48%,-37.38%,due to loss on sale of fixed assets more non operating expenses.

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

(STATEMENT 10)



PARTICULARS

current assets

Miscellaneous expenses

A) Total current assets

Less : C current liabilities

B) Total current liabilities

Working capitalC) = (A-B)

D) Fixed assets

E) capital employedE) =(C+D)

Represented by Share holders net worth.

Less: loss (previous year)

1998-99 1999-00 INCREASE/DECREASE IN Rs

INCREASE/DECREASE IN %

6451.31 6578.36 127.05 1.96%

119.53 119.53 - -

6570.84 6697.89 127.05 1.93%

- - - -

- - - -

6570.84 6697.89 127.05 1.93%

824.63 859.99 35.36 4.28%

7595.47 7557.88 -37.59 -4.9%

7877.21 8323.18 446 5.66%

475.27 765.30 290.03 61.02%

Capital employed7395.47 7557.88 -37.59 -4.9%




(STATEMENT 11)

PARTICULARS

current assets






D) Fixed assets




1999-00 00-01. INCREASE/DECREASE IN Rs


6578.36 5320.88 -1257.48 -19.11%

119.53 119.53 - -

6697.89 5440.41 -1257.48 -18.77%

- - - -

- - - -

6697.89 5440.41 -1257.48 -18.77%

859.99 854.07 -5.92 -0.68%

7557.88 6294.48 -1263.4 -16.71%

8323.18 8013.43 -309.75 -3.72%

765.30 1718.95 953.65 124.61%

Capital employed7557.88 6294.48 -1263.4 -16.71%




(STATEMENT 12)

PARTICULARS

current assets






D) Fixed assets




00-01. 01-02 INCREASE/DECREASE IN Rs


5320.88 5559.43 238.55 4.48%

119.53 119.53 - -

5440.41 5678.96 238.55 4.38%

- - - -

- - - -

5440.41 5678.96 238.55 4.38%

854.07 851.36 -2.71 -0.31%

6294.48 6530.32 235.84 3.74%

8013.43 9430.02 1416.59 17.67%

1718.95 2899.70 1180.75 68.69%

Capital employed

6294.48 6530.32 235.84 3.74%




(STATEMENT 13)

PARTICULARS

current assets






D) Fixed assets






5559.43 4046.36 -1513.07 -27.21%

119.53 119.53 - -

5678.96 4165.89 -1513.07 -27.21%

- - - -

- - - -

5678.96 4165.89 -1513.07 -27.21%

851.36 837.99 -13.37 -1.57%

6530.32 5003.88 -1526.44 -23.37%

9430.02 9386.15 -43.87 -0.46%

2899.70 4382.27 1482.57 51.12%

Capital employed

6530.32 5003.88

-1526.44 -23.37%




(STATEMENT 14)

PARTICULARS

current assets






D) Fixed assets






4046.36 2919.71 -1126.65 -27.84%

119.53 119.53 - -

4165.89 3039.24 -1126.65 -27.84%

- - - -

- - - -

4165.89 3039.24 -1126.65 -27.84%

837.99 808.93 -29.06 -3.46%

5003.88 3848.17 -1155.71 -23.09%

9386.15 8569.43 -816.72

-8.70%

4382.27 4721.26 338.99 7.73%



Capital employed

5003.88 3848.17

-1155.71 -23.09%


(STATEMENT 15)

PARTICULARS

current assets






D) Fixed assets





2919.71 2797.31 -122.4 -4.19%

119.53 543.89 424.36 35.0%

3039.24 3341.2 301.96 9.9%

- - - -

- - - -

3039.24 3341.2 301.96 9.9%

808.93 798.45 -10.48 --1.29%

3848.17 4139.64 291.47 7.57%

8569.43 9418.70 849.27 9.91%




4721.26 5279.06 -557.8 11.81%

Capital employed

3848.17 4139.64 291.47 7.57%


(STATEMENT 16)

PARTICULARS

current assets








2797.31 7075.38 4278.07 152.93%

543.89 774.92 231.03 42.47%

3341.2 7850.3 4509.1 134.95

- - - -

- - - -

3341.2 7850.3 4509.1 134.9%

798.45 849.49 51.04 6.39%



D) Fixed assets




4139.64 8699.79 4560.15 110.15%

9418.70 14331.82 4913.12 52.16%

5279.06 5632.03 352.976.68%

Capital employed

4139.64 8699.79 4560.15 110.15%


(STATEMENT 17)

PARTICULARS

current assets






7075.38 8056.58 981.2 13.86%

774.92 466.90 -308.02 -39.74%

7850.3 8529.74 679.71 8.65%

- - - -

- - - -





D) Fixed assets




7850.3 8529.74 679.71 8.65%

849.49 814.43 -35.06 -4.12%

8699.79 9344.17 644.387.40%

14331.82 14539.50 207.68 1.44%

5632.03 5195.33 -436.7 -7.7%

Capital employed

8699.79 9344.17 644.387.40%


(STATEMENT 18)

PARTICULARS

current assets



805658393 919580314 113921921 14%








D) Fixed assets


Share capital


46689852 27841206 18848646 40%

852348245 947421520 95073275 11%

- - - -

- - - -

852348245 947421520 95073275 11%

82068782 80006106 (2062676) 2.5%

934417027 1027427536 93010509 9.9%

1453950330 1537720071 83769741 5.7%

519533303 510292445 (9240858) -1.77%

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.

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

current assets






D) Fixed assets




1998-99 1999-00Rs % Rs %

6451.31 87.97% 6578.36 87%

119.53 1.57% 119.53 1.7%

6570.84 89.54% 6697.89 88.7%

- - - -

- - - -

6570.84 89.54% 6697.89 88.7%

824.63 10.46% 859.99 11.3%

7595.47 100% 7557.88 100%

7877.21 106.42% 8323.18 110.2%

475.27 6.42% 765.30 10.2%

Capital employed7395.47 100% 7557.88 100%




(STATEMENT 20)

PARTICULARS

current assets






D) Fixed assets




1999-00 00-01.Rs % Rs %

6578.36 87% 5320.88 84.55%

119.53 1.7% 119.53 1.89%

6697.89 88.7% 5440.41 86.44%

- - - -

- - - -

6697.89 88.7% 5440.41 86.44%

859.99 11.3% 854.07 13.56%

7557.88 100% 6294.48 100%

8323.18 110.2% 8013.43 127.30%

765.30 10.2% 1718.95 27.30%





(STATEMENT 21)

PARTICULARS

current assets






D) Fixed assets




00-01. 01-02Rs % Rs %

5320.88 84.55% 5559.43 85.14%

119.53 1.89% 119.53 1.83%

5440.41 86.44% 5678.96 86.97%

- - - -

- - - -

5440.41 86.44% 5678.96 86.97%

854.07 13.56% 851.36 13.03%

6294.48 100% 6530.32 100%

8013.43 127.30% 9430.02 144.40%

1718.95 27.30% 2899.70 44.40%




COMMON SIZE BALANCESHEET OF K.H.D.C.L.TD FOR THE YEAR01-02 &02-03.

(STATEMENT 22)

PARTICULARS

current assets






D) Fixed assets




01-02 02-03

Rs % Rs %5559.43 85.14% 4046.36 80.88%

119.53 1.83% 119.53 2.38%

5678.96 86.97% 4165.89 83.26%

- - - -

- - - -

5678.96 86.97% 4165.89 83.26%

851.36 13.03% 837.99 16.74%

6530.32 100% 5003.88 100%

9430.02 144.40% 9386.15 187.57%

2899.70 44.40% 4382.27 87.57%



Capital employed6530.32 100% 5003.88

100%


(STATEMENT 23)

PARTICULARS

current assets






D) Fixed assets



02-03 03-04Rs % Rs %

4046.36 80.88% 2919.71 75.87%

119.53 2.38% 119.53 3.11%

4165.89 83.26% 3039.24 78.98%

- - - -

- - - -

4165.89 83.26% 3039.24 78.98%

837.99 16.74% 808.93 21.02%

5003.88100%

3848.17100%

9386.15 187.57% 8569.43222.68%



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

Capital employed5003.88

100%3848.17 100%


(STATEMENT 24)

PARTICULARS

current assets






D) Fixed assets

E) capital employed

03-04 04-05Rs % Rs %

2919.71 75.87% 2797.31 67.59%

119.53 3.11% 543.89 13.13%

3039.24 78.98% 3341.2 80.72%

- - - -

- - - -

3039.24 78.98% 3341.2 80.72%

808.93 21.02% 798.45 19.28%

3848.17100%

4139.64100%



E) =(C+D)



8569.43222.68%

9418.70 227.52%

4721.26 122.68% 5279.06 127.52%

Capital employed

3848.17

100%

4139.64100%


(STATEMENT 25)

PARTICULARS

current assets





Working capital

04-05 05-06Rs % Rs %

2797.31 67.59% 7075.38 81.34%

543.89 13.13% 774.92 8.90%

3341.2 80.72% 7850.3 90.24%

- - - -

- - - -

3341.2 80.72% 7850.3 90.24%



C) = (A-B)

D) Fixed assets




798.45 19.28% 849.49 9.76%

4139.64100%

8699.79100%

9418.70 227.52% 14331.82 164.73%

5279.06 127.52% 5632.03

64.73%

Capital employed

4139.64100%

8699.79100%

COMMON SIZE STATEMENT OF K.H.D.C.L.td.FOR THE YEAR 05-06,06-07

(STATEMENT 26)

PARTICULARS

current assets



05-06 2006-07Rs % Rs %

7075.38 81.33% 8056.58 86.29%

774.92 8.9% 466.90 4.99%

7850.3 90.23% 8529.74 91.28%

- - - -






D) Fixed assets




- - - -

7850.3 90.23% 8529.74 91.28%

849.49 9.76% 814.43 8.71%

8699.79 100% 9344.17 100%

14331.82 +164.73% 14539.50 +155.59

5632.03 -64.73% 5195.33 -55.59%

Capital employed

8699.79 100% 9344.17 100%

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

current assets

Rs Percentage Rs Percentage

805658393 86.22% 919580314 89.50%








D) Fixed assets


Share capital


46689852 4.99% 27841206 2.70

852348245 91.21% 947421520 92.2%

- - - -

- - - -

852348245 91.21% 947421520 92.2%

82068782 8.78 80006106 7.78%

934417027100%

1027427536 100%

1453950330 155. 1537720071 149.66%

519533303 55.59% 510292445 49.66%

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

ParticularsRs

%Rs

% ParticularsRs

%Rs

%



A) share holders funds

i) share capital

ii)Reserve & surplus

iii) Deferred government grant

B)Loan funds

i) Secured loans

ii) unsecured loans

443820700

306032734

27655638

496413367

180027891

30.52

21.04

1.90

34.4

12.14

443820700

370158685

26221647

511532656

185986383

28.86

24.07

1.70

33.28

12.09

Application of the funds.

A) Fixed assets

B) investments

C) Net current assets

D)Miscellaneous expenses

E) Profit & loss A/c

81442782

626000

805658393

46689852

519533303

5.61

0.04

55.41

3.21

35.73

79380106

626000

919580314

27841206

510292445

5.16

0.04

59.80

1.81

33.19

TOTAL 1453950330 100 1537720071 100 TOTAL 1453950330 100 1537720071 100

INTER PRETATIONS FOR COMMON SIZE BALANCE SHEET FOR 10 YEARS



1) For the year 98-99 total current assets are 89.54%, fixed assets are 10.46% and share

holders net worth was 106.42%, and accumulated loss was 6.42% .accumulated loss

means previous years loss

2) For the year 99-00 capital employed wads raised Rs7557.88lakhs. But accumulated loss

raised by 10.4% compare to 98-99, fixed assets are raised 11.3% due to purchase of fixed

assets. Current assets are decreased by 88.7% due to decrease in purchase of inventories,

delay in payment by debtors.

3) For the year 00-01 total capital employed was decreased by Rs 6294.48 due to total

Current assets are decreased by 86.44% because delay in payment of loans and advances

by debtors, etc similarly fixed assets are raised by 13.56% .accumulated loss was raised

by 27.30% due to previous and current year loss.

4) For the year 01-02 Current assets are raised by 85.14% because increase in purchase of

inventory, payment made by debtors, rise in cash and bank balance etc. the value of fixed

assets are decreased by 13.03% due to depreciation of assets. The capital employed was

raised Rs 6530.32 due to rise in government grant. Accumulated loss was raised by

44.40% because of last 2 years loss including current year loss.

5) For the year 02-03 fixed assets are raised by 16.74% due to purchase of land buildings,

other fixed assets. Accumulated loss was raised by 87.57% due to previous year loss. The

capital employed was decreased by Rs 5003.88 due to rise in loss and fall in reserve and

surplus



6) For the year 03-04 Current assets are decreased by 78.98%. Fixed assets are

raised by 21.02%. The capital employed was decreased by Rs 3848.17 because of

Accumulated loss was raised by 122.68%.

7) For the year 04-05 Current assets are raised by 80.72% due to raise in pre-paid expenses.

Fixed assets are decreased by 19.28% due to depreciation. The Share holders net worth

was raised by 9418.70 due to increase in share capitals, reserve and surplus and also

deferred government grant. Accumulated loss was raised by 5279.06

8) For the year 05-06 Current assets are raised by 90.24% due to purchase is more of stock

raw-materials. Fixed assets are decreased by 9.76% due to sale of fixed assets and

depreciation. Share holders net worth was raised by 14331.82 due to share capitals and

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


Material consumed


Gross profit


Operating loss


7943.56 100% 7705.45 100%

- - - -

7943.56 - 7705.45 -

5864.92 -73.83% 5367.90 -69.66%2078.64 +26.16% 2337.55 +30.33%

2753.39 -34.06% 2845.53 -38.92%

673.75 -8.48% 507.98 -7.59%

1429.67 +17.07% 799.81 +11.37%

755.92 -9.5 291.83 -4.78%


Profit /loss

less: prior period adjustments.

655.54 -8.25% 582.66 -9.23%

100.38 +1.26% -290.83 -4.77%

-92.99 -1.17 +0.80 +0.01%



Tax, bad debts etc.

Net profit/loss

7.39 +0.09 -290.03 -4.76%

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

(STATEMENT 30)


A) Net sales


Material consumed


Gross profit


Operating loss


Rs % Rs %7705.45 100% 6017.77 100%

- - - -

7705.45 - 6017.77 -

5367.90 -69.66% 4619.93 -76.772337.55 +30.33% 1397.84 +23.22

2845.53 -38.92% 2665.22 -44.28

507.98 -7.59% 1267.38 -21.06

799.81 +11.37% 1068.57 +17.75%

291.83 -4.78% -198.81 -3.30%


Profit /loss

582.66 -9.23% 602.19 -10%

-290.83 -4.77% -801.00 -13.3%




Net profit/loss

+0.80 +0.01% -152.65 -2.53%

-290.03 -4.76% -953.65 -15.84%


(STATEMENT 31)


A) Net sales


Material consumed


Gross profit


Operating loss


Rs % Rs %

6017.77 100% 9688.63 100%

- - 2573.66 -26.56%

6017.77 - 7114.97 73.43%

4619.93 -76.77 4671.27 -48.21%

1397.84 +23.22 2443.7 25.22%

2665.22 -44.28 3032.36 -31.29%

1267.38 -21.06 588.66 -6.07%

1068.57 +17.75% 127.86 +1.31%

-198.81 -3.30% -460.8 -4.75%




Loss


Net profit/loss

602.19 -10% 628.55 -6.48%

-801.00 -13.3% -1089.35 -11.24%

-152.65 -2.53% -91.40 -0.94%

-953.65 -15.84% -1180.75 -12.18%


(STATEMENT 32)






Rs % Rs %A) Net sales


Material consumed


Gross profit


Operating loss


9688.63 100% 4989.75 100%

2573.66 -26.56% - -

7114.97 73.43% 4989.75 -

4671.27 -48.21% 4863.52 -97.47%

2443.7 25.22% 126.23 2.53%

3032.36 -31.29% 2645.98 -53.02%

588.66 -6.07% 2519.75 -50.49%

127.86 +1.31% 1669.17 +33.45%

-460.8 -4.75% -850.58 -17.04%


loss


Net profit/loss

628.55 -6.48% 622.26 -12.46%

-1089.35 -11.24% -1472.84 -29.51%

-91.40 -0.94% 9.74 -0.19%

-1180.75 -12.18% 1482.58 -29.71%


(STATEMENT 33)




Material consumed


Gross profit


Operating loss


4989.75 100% 8565.68 100%

- - 2441.55 -28.50%

4989.75 - 6124.13 71.50%

4863.52 -97.47% 3342.10 -39.01%126.23 2.53% 2782.03 32.47%

2645.98 -53.02% 3031.93 -35.39%

2519.75 -50.49% 249.9 -2.91%

1669.17 +33.45% 103.71 +1.21%

-850.58 -17.04% -146.19 -1.70%


loss


Net profit/loss

622.26 -12.46% 482.67 -5.63%

-1472.84 -29.51% -628.86 -7.34%

9.74 -0.19% +289.88 +3.38%

-1482.58 -29.71% -338.98 -3.95%




(STATEMENT 34)




Material consumed


Gross profit


Operating loss


8565.68 100% 7643.44 100%

2441.55 -28.50% 566.40 -7.41%

6124.13 71.50% 7077.04 92.59%

3342.10 -39.01% 4871.38 -63.73%

2782.03 32.47% 2205.66 28.85%

3031.93 -35.39% 2657.58 -34.76%

249.9 -2.91% 451.92 -5.91%

103.71 +1.21% 88.69 +1.16%

-146.19 -1.70% -363.23 -4.75%Less : non operating expenses.Loss on sale of fixed assets, modernization assistance to weavers, other charges.

loss


Net profit/loss

482.67 -5.63% 421.94 -5.51%

-628.86 -7.34% -785.17 -10.27%

+289.88 +3.38% +227.37 +2.97%

-338.98 -3.95% -557.80 -7.29%




(STATEMENT 35)




Material consumed


Gross profit


Operating loss


7643.44 100% 6998.38 100%566.40 -7.41% - -

7077.04 92.59% 6998.38 -

4871.38 -63.73% 5666.15 80.96%2205.66 28.85% 1332.23 19.04%

2657.58 -34.76% 2455.14 -35.13%

451.92 -5.91% 1122.91 -16.04%

88.69 +1.16% 1012.75 +14.47%

-363.23 -4.75% 110.16 -1.57%


loss

less: prior period adjustments. Tax, bad debts

421.94 -5.51% 460.83 -6.58%

-785.17 -10.27% -570.99 -8.15%

+227.37 +2.97% +218.02 +3.11%



etc.

Net profit/loss

-557.80 -7.29% -352.97 -5.04%

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)



Material consumed


Gross profit


Operating loss


6998.38 100% 8770.44 100

- - 1178.00 -14.16

6998.38-

7592.4485.83

5666.15 80.96% 5260.59 -63.231332.23 19.04% 2331.85 22.60

2455.14 -35.13% 2414.4 -23.59

1122.91 -16.04% 82.55 -0.98

1012.75 +14.47% 634.12 7.62

110.16 -1.57% 551.57 6.63Less : non operating expenses.Loss on sale of fixed assets, modernization assistance to weavers, other charges.

Loss/ profit

460.83 -6.58% 521.52-6.27

-570.99 -8.15% 30.05 0.34%




Net profit/loss

+218.02 +3.11% +406.65 4.63%

-352.97 -5.04% +436.70 4.97

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

(STATEMENT 37)

Particulars 2006-07 2007-08Rs percentage Rs Percentage

A) Net sales


Material consumed


Gross profit


Operating loss


831873120 100 888789046 100

117799842 14.16 - -

714073278 85.83 888789046 100

526022935 63.23 711302079 80.03188050343 22.60 177486967 19.96

196269257 23.59 249046416 28.02

(8218914) -0.98 (71559449) -8.05

63412224 7.62 125458168 14.11

55193310 6.63 53898719 6.06


Profit

52188710 6.27 50530934 5.68

3004600 0.36 3367785 0.37

413020104 49.64 8263076 0.92



Add: previous year profit.

Net profit

Less : interest

bad debts

Profit before tax

Less : fringe benefit tax

Profit after tax

44306704 5.32 11630861 1.30

- - - -

- - 1779000 0.20

44306704 5.32 9851861 1.10

636628 0.07 611003 0.06

43670075 4.97 9240858 1.03%

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

1) For the year 98-99 the net profit was 7.39 lakhs. Means out of 100% net profit was

0.093%. Because the cost of production was 73.83% and operating expenses are

34.66% , non operating incomes are not increased up to the mark. Previous year loss

and tax was 1.17%.

2) Year 99-00 it was beginning for getting the loss continuously for 7 years and this year the

loss was -4.76% out of 100% this year sales are declined compare to 98-99. But

operating expenses are raised by -38.92% and operating loss was -7.59%. It was low

compare to 98-99 because manufacturing expenses are decreased by -69.66%. Gross

profit was raised by +30.33%. This year positive of prior period adjustments of +0.01%

due to tax returns, recovery of bad debts etc.

3) For the year 00-01 net sales are declined -21.90%. But manufacturing expenses are raised

by-76.77 which affects to decline the gross profit at rate of -40%. Operating expenses are

also raised to total sales at the rate of -44.28. Therefore operating loss was -21.06 of its

total sales. Non-operating incomes are +17.75% of its total sales, due to market



assistance, IHDS Subsidy, other income, profit on sale of assets etc. loss for this year was

-15.84%.

4) Year 01-02 net sales are raised, due to market assistance provided by the government.

Operating expenses are declined due to decrease in Manufacturing expenses and operating

expenses to its total sales. Non-operating income is only +1.31% of its total sales because loss

on sale of fixed assets, non-recovery of bad debts etc.net loss were -12.18% of its total sales.

5) 02-03 gross profit was only 2.53% of its total sales due to rise in manufacturing expenses.

Very low. Operating loss was-50.49% of its total sales due to rise in operating expenses. 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,



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

0

2000

4000

6000

8000

10000

12000

1

YEARS

CA

PIT

AL

EM

PL

OY

ED

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08


1998-99 7395.471999-00 7557.882000-01 6294.482001-02 6530.322002-03 5003.882003-04 3848.172004-05 3786.642005-06 8699.792006-07 9344.172007-08 10274.27


CHART 1

2) The accumulated loss of K.H.D.C.L.td. goes on increasing rate up to 2005-06 then it start decreasing for next years but not up to the mark.

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.


YEARS ACCUMULATED LOSS

1998-99 475.271999-00 765.32000-01 1718.952001-02 2899.72002-03 4382.272003-04 4721.262004-05 5279.062005-06 5632.032006-07 5195.332007-08 5102.93

ACCUMULATED LOSS OF K.H.D.C.L.td

0

1000

2000

3000

4000

5000

6000

YEARS

YEARS

AC

CU

MU

LA

TE

D L

OS

S 1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08


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

-2000

-1500

-1000

-500

0

500

1000

99 00 01 02 03 04 05 06 07 08

YEARS

NET

PR

OFI

T O

R L

OSS

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

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.

0

2000

4000

6000

8000

10000

12000

YEARS

YEARS

SA

LE

S

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

CHART 4


YEARS PROFIT /LOSS

1998-99 7.39

1999-00 -290.03

2000-01 -953.65

2001-02 -1180.75

2002-03 -1482.58

2003-04 -338.98

2004-05 -557.8

2005-06 -352.97

2006-07 436.7

2007-08 92.41

YEARS SALES1998-99 7943.561999-00 7705.452000-01 6017.772001-02 9688.632002-03 4989.752003-04 8565.682004-05 7643.442005-06 6998.382006-07 8770.442007-08 9481.09


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

ADMINISTRATION EXPENSES OF K.H.D.C.L.td.

0

500

1000

1500

2000

2500

YEARS

YEARS

AD

MIN

IST

RA

TIO

N E

XP

EN

SE

S

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

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.

760770780790800810820830840850860870

YEARS

YEARS

FIX

ED

AS

SE

TS

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

CHART 6


YEARSADMINISTRATION

EXPENSES

1998-99 1897.091999-00 1908.852000-01 1876.392001-02 1986.122002-03 2255.132003-04 2248.92004-05 2142.812005-06 1995.942006-07 1868.412007-08 2367.71

YEARS FIXED ASSETS1998-99 824.631999-00 859.992000-01 854.072001-02 851.362002-03 837.992003-04 808.932004-05 798.452005-06 849.492006-07 820.692007-08 800.06


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.

0100020003000400050006000700080009000

10000

YEARS

YEARS

NET

CU

RR

ENT

ASS

ETS

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

CHART 7

8) Revenue from other sources are raised from year to year of production of K.H.D.C.L.td was r


YEARSNET CURRENT ASSETS

1998-99 6451.311999-00 6578.362000-01 5320.882001-02 5559.432002-03 4046.362003-04 2919.712004-05 2797.312005-06 7075.382006-07 8056.582007-08 9195.8

YEARSRevenue from other sources

1998-99 106.691999-00 123.42000-01 120.422001-02 127.862002-03 122.752003-04 103.712004-05 88.692005-06 475.382006-07 634.122007-08 1051.6


REVENUE FROM OTHER SOURCESOF K.H.D.C.L.td

0

200

400

600

800

1000

1200

YEARS

years

rev

en

ue

fro

m o

the

r s

ou

rce

s

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

CHART 8

9) Cost of production of K.H.D.C.L.td. are as below with an average of 3342.1 lakhs

COST OF PRODUCTION OF K.H.D.C.L.td.

0

1000

2000

3000

4000

5000

6000

7000

8000

YEARS

YEARS

CO

ST

OF

PR

OD

UC

TIO

N

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08


YEARSCOST OF PRODUCTION

1998-99 5864.921999-00 5367.92000-01 4619.932001-02 4671.272002-03 4863.522003-04 3342.12004-05 4871.382005-06 5666.152006-07 5260.592007-08 7113.15


CHART 9

FINDINGS

1) Company’s manufacturing expenses, Administration and selling expenses are

not well controlled therefore out of 10 years, many years company in

operating loss.

2) Accumulated loss is increased by every year. Because the company does not

earn the profit to recover the previous year loss therefore it was raised every

year.



3) The major source of income to company from Karnataka vidya vikas yojana

because 80% of goods i.e. drill cloth sold to Karnataka Primary Education

Board, for its Government school children’s uniforms .etc.

4) K.H.D.C.L.td. was not allocating its resources properly, for it operational

activities there for K.H.D.C.L.td not earns well profit.

5) Increase in cost of production due to raise in the cost of raw- material, lack of

supply of materials and due to competition K.H.D.C.L.td was facing the

problem of adequate raw-material

6) Some products which are not produced by power looms like rib bed sheets,

multi thread design, carpets.

7) Value addition can be made to hand loom products. And durability of goods

is more comparing to power looms. The K.H.D.C.L.td is not profit motive

organization. The main objective of K.H.D.C.L.td is to support the weavers by

providing the employment opportunities and social well fare to the weavers.

Therefore weavers’ production efficiency is not being up to the mark



SUGGESTIONS

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.



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..



Financial Management

By M.L.Guledgudd



KARNATAKA HANDLOOM DEVELOPMENT CORPORATION LIMTEDBALANCE 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 capitalReserve surplusDeferred government grant

Sub total (i)

1572.21 1572.21 1572.21 1572.21 1572.21 4438.21 4438.21 4438.21 4438.21 4438.21440.11 454.46 451.50 462.47 459.51 446.11 935.76 3158.50 3060.32 3701.59

- - - - - - - 288.29 276.56 262.21

2012.32 2026..67 2023.71 2034.68 2031.72 4884.32 5373.97 7885.00 7775.09 8402.01

Loan funds

Long term loanShort term loan

2899.04 3000.59 3014.95 3206.20 3311.01 435.81 1129.96 1800.28 1800.28 1859.862965.85 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 fundsFixed assets Investments’Net current assetsMiscellaneous expensesAccumulated loss

824.63 853.52 847.60 844.89 831.52 802.67 792.19 843.23 814.43 793.806.47 6.47 6.47 6.47 6.47 6.26 6.26 6.26 6.26 6.266451.31 6578.36 5320.88 5559.43 4046.36 2919.71 2797.31 7075.38 8056.58 9195.80119.53 119.53 119.53 119.53 119.53 119.53 543.89 774.92 466.90 278.41475.27 765.30 1718.95 2899.70 4382.27 4721.26 5279.06 5632.03 5195.33 5102.93

Total 7877.21 8323.18 8013.43 9430.02 9386.15 8569.43 9418.71 14331.82 14539.50 15337.20Net worth 1417.52 1141.84 185.23 -984.55 -2470.08 43.53 -448.97 1186.76 1836.31 2758.47

IncomeSales including janata subsidyOther revenue

Variation of stocks

7943.56 7705.45 6017.77 9688.63 4989.75 8565.68 7643.44 6998.38 8770.44 9481.09

106.69 123.40 120.42 127.86 122.75 103.71 88.69 475.38 634.12 1051.60

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 10735.66ExpenditureCost of productionAdministration expenseS&D expenses

5864.92 5367.90 4619.93 4671.27 4863.52 3342.10 4871.38 5666.15 5260.59 7113.151897.09 1908.85 1876.39 1986.12 2255.13 2248.90 2142.81 1995.94 1868.41 2367.71

855.30 936.68 788.83 1046.24 390.85 783.83 514.77 459.20 545.99 715.95Finance chargesDepreciation

609.78 535.64 553.98 584.59 577.69 440.17 382.44 420.00 481.31 465.6845.76 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 10701.98Profit (+) Loss(-) (i-ii)Prior period adjustments’ and taxNet profit (+)/ Loss(-)

100.38 -290.83 -801.00 -1089.35 -1472.84 -628.86 -785.17 570.99 30..05 33.68

-92.99 0.80 -152.65 -91.40 -9.74 289.88 227.37 218.02 406.65 58.737.39 -290.03 -953.65 -1180.75 -1482.58 -338.98 -557.80 -352.97 436.70 92.41


a project report on analysis and interpretation of 10 years financial statements

Business

comparativeincome statement

years financial statements

data analysis

conclusionby analysis

years financialstatements

financial status

financial performance

fixed assets