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KARNATAKA HANDLOOM DEVELOPMENTCORPORATION LIMITED

PRIYADARSHINI

THE ORIGINAL HOME OF HANDLOOMS

Presented by

Shri MOHAMMAD MOHSIN , I A SManaging Director

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Established in 1975 under the Companies Act 1956 and

covered under 20 Point Programme of late Prime Minister

Smt. Indira Gandhi.

KHDC has been in the services directly with the weavers andprovides raw materials and technical support to them.Provides continuous employment to the weavers

Objective is to promote handloom industry and to facilitate

economic self reliance of weavers KHDC has been in the services of 12,810 Handloom Weavers

across Karnataka

KHDC generates Indirect Employment to over 1.00 lakh people

The activities of Karnataka Handloom

Development Corporation

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PRODUCTION UNITS

a) Cotton Projects

i. NO OF WEAVERS : 11,586

ii. NO. OF Intensive Handloom Development Projects9Working at :

1) BANAHATTI

2) RABAKAVI

3) RAMADURGA4) ILKAL

5) RANEBENNUR

6) GULBARGA

7) BASAVAKALYAN

8) BHAGYANAGAR9) E.O.C.P GADAG-BETAGERI

NO. OF SUB CENTRES INCLUDING COLLECTION CENTRES: 132

AVERAGE PRODUCTION PER MONTH:

QTY : 8.50 LAKH MTRS VALUE: Rs. 290.00 LAKHS

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b) SILK PROJECTS

i. No. of Weavers 810

ii. No. of Silk Raw Material Cum Procurement Depots working at :

1. Anekal

2. Kallur

3. Tiptur

4. Kollegal

5. Molkalmur

6. Chinthamani

c) Preloom Process House,

To provide a ready warp beams to weavers situated at Banhatti andRanebennur

d) Raw Material Bank :

To ensure timely supply of raw material to weavers,the raw material bank

working at Banhatti.

e) Postloom Process House :

To provide high quality of processed material to meet the consumer needs,

working at Peenya, Bangalore

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KHDC is Implementing

1) Vidya Vikas SchemeSupply of uniforms to school

children

2) Subsidised Saree Dhoti Scheme to BPL families in the

State

3) MADILUHealth kit to Mothers

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Vidya Vikas Scheme (V V S)

The Scheme offers assured livelihood to weavers and freeuniform for children - launched in 1987-88

Honble Chief Minister has extended this Scheme to High

School girl students from 2003-2004 The order on KHDC is to the tune of Rs. 48.40 crores for

99.96 lakh meters of cloth

VVS production at the rate of 9 to 10 lakh meters with

loom coverage of 8000 looms takes 12 months time

Basic cost of production on yarn, processing and weavers

wages account for Rs. 43.00 crores.

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Vidya Vikas scheme Issue to be resolved

i. As per the decision taken under the Chairmanship of Honble TextileMinister on 17.09.2009 along with Principal Secretary to HonbleChief Minister of Karnataka, following points were discussed andresolved as below:-(a) Entering into MOU with Education Department for 3 to 5 years.

Honble Textile Minister and Principal Secretary to Honble ChiefMinister of Karnataka have informed to the Managing Director ofKHDC, Textile Commissioner and Secretary to Government, C&IDept, Secretary to Government, Education Department [PrimaryEducation] and Secretary to Government [Finance Department] forsubmission of proposals to entering the MOU with KHDC.

(b) Principal Secretary to Honble Chief Minister of Karnataka hasinformed that, following action is to be initiated for release ofadvance to KHDC under VVS:-

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(1) 1/3 amount is to be released to KHDC during September only for thesupplies of subsequent academic year.(2) 50% money is to be released to KHDC during the period from Feb-April(3) Balance is to be released immediately after supply of uniform before June.(c) Revision of Rates of Uniforms:

Principal Secretary to Honble Chief Minister of Karnataka has indicatedthat, minimum 4-5% upward revision has to be made every year.

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Subsidised Saree Dhoti Scheme (SSDS) -

Implemented since 1985

BPL Card Holders are the beneficiaries at subsidised rates

for Sarees, Dhoties and Lungi varieties. Weavers working under

this scheme are aged and women weavers of North Karnataka

The allocation in the Budget has reduced from an all time

high of Rs. 17.00 crores to Rs.2.00 crores during 2007-08

Basic cost of production on yarn, weavers conversion charges

& processing charges accounts for Rs. 1.75 crores

Subject Committee of C&I Department has recommended toprovide at least Rs.13.00 crores

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Durry Preparation

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OUR PREMIER PRODUCTS :i. Traditional Silk Sareesii. Printed Silk Sarees

iii. Cotton Sareesiv. Polyester Sareesv. Chudidhar Setvi. Silk Kurtis / Made Upsvii. Soham Shirts / Silk Shirtsviii. Designer Silk Sarees

ix. Silk Tiesx. Jacquard Bedsheetsxi. Nisarga Bedsheetsxii. Table Linenxiii. Bed Linen

xiv. Jamkana (Carpet)xv. Pillow Coverxvi. Towelsxvii. Turkish Towelsxviii.Woolen Blankets

xix. Janatha Sarees / Dhoti

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Woman Weaver with Jacquard Loom

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WELFARE SCHEMES TO WEAVERS

a) Health Package : (Through ICICI, Lombard)Reimbursement of Medical expenditure of the weaver, spouse and legitimate children.Eligibility is Maximum of Rs. 15000.00 P.A

Weavers Contribution Rs. 50.00 P.A.GOK Contribution Rs. 89.13 P.A.GOI Contribution Rs.642.47 P.A.----------------------------------------------

Total Rs.781.60 P.A----------------------------------------------

Weavers covered 3151 Nos.b)Insurance : Under Mahatma Gandhi Bhunakar YojanaIn case of natural death Rs. 60,000, accidental death Rs.150,000 and partialdisablement Rs. 75,000 and permanent disablement Rs.150,000 will bepaid from Insurance Company.

Weavers contribution Rs. 40 p.a. - G.O.I Contribution Rs.150 p.a.G.O.K. Contribution Rs. 40 p.a. - LIC Social Security Rs.100 p.a.==========================================

Total Rs. 330=========================================Weavers covered 5,553

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ii) Sahashikshana YojanaRs. 1200 per student for each Academic year :

a) 2004-05 - 449 Nos. Rs 5.38 lakhs

b) 2005-06 - 733 Nos. Rs 4.40 lakhs

c) 2006-07 - 959 Nos. Rs 11.51 lakhs

d) 2007-08 - 1071 Nos. Rs 12.85 lakhs

e) 2008-09 - 1218 Nos. Rs 14.62 lakhs

f) 2009-10 - 1327 Nos. Rs 15.92 lakhs

c) Thrift Fund Scheme:Under this scheme weavers have to contribute 8% on their earnings and 8%

Govt. contribution (4% GOK + 4% GOI) plus interest on both. The scheme

period is for 15 years.

No. of weavers covered 4663

d ) Funeral expenditure :

Rs. 3,000 per weaver will be disbursed from KHDC on the death of the

weaver to his/her family member towards funeral expenses w.e.f May

2010.

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e )Housing (Living Cum Worksheds) :

Centrally Sponsored Scheme:

i) Under this scheme 1,634 LCWS have been constructed and

allotted to the weavers, 50% Grant and 50% Loan. Cost of the

house Rural Rs. 35,000, and Urban Rs. 45,000.

ii)Constructed through Rajeev Gandhi Rural Housing Corporation :

288 LCWS are sanctioned, out of which 287 is completed.

Dutch Assisted Project :

Under this project, 1942 LCWS have been constructed and

allotted to the weavers at 19 places.

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Living cum Workshed

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Weavers Special Package Component by GOK sanction during 2007-08, 2008-09, 2009-10& 2010-11

[Rs.in lakhs]

2007-08 2008-09 2009 -10 2010-11

(proposed)

Installation of looms & accessories 23.89 - - -

Upgradation & modernization 43.47 36.00 - -

of existing looms

Skill upgradation & training for 17.99 20.00 - -

weavers

Interest subsidy on working 150.29 125.00 80.00 96.00

capital loan

Working Capital Grant for Raw 715.80 260.00 239.00 170.00

Material Purchases

Reimbursement of 20% rebate 360.58 317.17 208.00 200.00

Modernisation of PTPH 23.00 75.00 - -

Interest on thrift fund 12.49 165.00 - 47.00

SCP/STP weavers package 212.49 - 173.00 187.00

Reimbursement of VAT - 107.83 - -

(2006-07 & 2007&08) .. . ..

1560.00 1106.00 700.00 700.00

. . ..

GOK has earmarked a sum of Rs 10.00 crores towards capital investment and Rs 3.00

crores for construction of Nekarara Bhavan in the State Budget 2010-11.

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Ensuring Better Wages to Weavers

Corporation has been revising conversion charges to weaversonce in 2-3 years to compensate inflation

In line conversion charges has been revised upwards in the

range of 2.22 % to 35.71 % on various varieties w.e.f

1.6.2008 & 10 % from 1.7.2009, 20% from 01.01.2010

The additional financial impact for 2009 10 on

Cotton / Polyester Rs. 81.00 Lakhs

Silk varieties Rs. 26.59 Lakhs

This is to ensure stop migration of weavers from Handloom

sector.

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Procurement of Cloth from weavers

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03

Janata 137.38 132.27 68.19 143.50 59.60 26.03 52.46

Non Janat 31.73 31.55 88.31 74.41 51.17 27.30 49.23

Polyester 24.12 36.83 51.89 13.32 53.22 62.90 61.33

Silk 3.81 5.25 6.04 5.45 3.87 2.48 2.89

Total 197.04 205.90 214.43 236.68 167.86 118.71 165.91

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Janata 16.78 2.89 14.43 13.80 11.32 12.21 9.40Non Janat 34.85 43.30 51.75 40.53 42.97 37.02 37.41

Polyester 47.40 51.44 60.61 51.35 52.55 48.66 47.92

Silk 1.22 1.75 2.14 1.68 1.99 2.09 2.24

Total 100.25 99.38 128.93 107.36 108.83 99.98 96.97

(in lakhs Mtrs)

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Segment wise Sales

Segment 2009-10 2008-09 2007-08 2006-07

Retails 1,610.49 1,570.89 1,693.07 1,496.27

Wholesale 3,256.12 2,021.53 1,410.07 679.09

SSDS 342.97 314.40 359.03 561.85

VVS 4,630.14 4,731.11 5,967.56 6,011.07

Other Sales 32.63 25.15 51.36 22.169,872.35 8,663.08 9,481.09 8,770.44

(Rs. in lakh )

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Five Year AnalysisProductionSalesIssue of YarnConversion Charges

SL

NOParticulars 2005-06 2006-07 2007-08 2008-09 2009-10

1 F.G.PRODUCTION

a) In Lakh Metersb) Value in Lakh Rs.

128.94

3700.72

107.36

3166.77

108.83

3250.93

99.98

3180.36

96.97

3451.98

2 Sales 6,998.38 8,770.44 9481.09 8663.08 9,872.35

3 Issue Of Yarn 2539.66 2182.00 2247.41 2157.67 2,327.02

4 ConversionCharges

1107.18 915.82 944.39 968.22 1,075.29

(Rs. in lakhs )

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Turn Around of KHDC

Annual turn over is in the range of Rs.87.00 to 99.00 Crores

Objective is to reach 100.00 Crores during 2009-10 and

achieved Rs 98.72 crores during 2009-10.

In the last 30 years, it has made marginal profits during 11

financial years & during 2006 07, 2007-08 & 2008-09 the

Corporation has made a Profit of Rs. 4.37 Crore & 0.92

Crore & Rs. 0.14 crore respectively.

Net worth has turned positive by Rs.32.61 crores as on

31.03.2009

From Loss to Profit

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Net Loss & Profit Account 2004 -05 to 2009-10

Sl no YEAR AMOUNT

1 2004-05 - 557.82

2 2005-06 - 352.97

3 2006-07 436.70

4 2007-08 92.41

5 2008-09 14.04

6 2009-10 (-) 1123.12

(Value in Lakhs)

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F R O M L O SS T O P R O F I T

0 0 0 0 0 0 0

-557. 82

-352. 97

436. 70

-348. 72

92. 41

-1000

-500

0

500

1 2 3 4 5 6 7 8 9 10

(Rs. in lakhs )

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Particulars 2004-05 2005-06 2006-07 2007-08 2008-09

Net loss /

profit

- 557.82 - 352.97 436.70 92.41 14.04

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NETWORTH OF KHDC

SL. NO YEAR NETWORTH

1

2

3

4

5

67

8

9

10

200001

200102

200203

200304

200405

200506200607

200708

200809

2009 - 10

185.23

(-)984.54

(-)2470.08

43.54

(-)448.98

1189.761836.36

2758.47

3260.99

2227.79

(Rs. in lakhs )

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PROFIT & LOSS ACCOUNT - HIGHLIGHTS

PARTICULARS 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Income

Sales 7643.44 6998.38 8770.43 9481.09 8663.08 9872.35

Other 236.11 475.40 634.10 1051.60 1017.10 935.31

Variation in Stock -566.40 537.37 -1177.99 202.97 -585.97 524.87

Prior period adjustments 227.37 218.02 413.02 58.73 - -

7540.52 8229.17 8639.56 10794.39 9094.21 11332.53

Expenditure

Cost of Production 4879.66 5693.67 5260.58 7113.15 5659.10 7493.97

Administration Expenses 2142.82 1995.94 1874.77 2367.71 2263.92 3454.37

Selling & Distribution expenses 653.91 431.70 545.99 715.95 639.90 641.30

Finance Charges 382.44 420.00 481.31 465.68 458.24 810.09

Depreciation 39.51 40.83 40.21 39.49 37.34 36.85

Prior period adjustments 21.67 19.07

8098.34 8582.14 8202.86 10701.98 9080.17 12455.65

Net Loss/Profit -557.82 -352.97 436.70 92.41 14.04 -1123.12

[Rs.inlakhs]

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BALANCE SHEET - HIGHLIGHTS

Reflecting Net worth of KHDC [Rs.in lakhs]PARTICULARS 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Funds Employed

Share Capital 4438.21 4438.21 4438.21 4438.21 4438.21 4438.21

Reserves & Surplus 935.76 3446.80 3336.88 3963.80 4249.46 4235.12

Long Term Loan 1129.96 1800.28 1800.28 1859.86 1978.51 2088.85

Short Term Loan 2914.77 4646.53 4964.13 5115.33 5224.16 7290.07

9418.70 14331.82 14539.50 15377.20 15890.34 18052.25

Application of Funds

Fixed Assets 792.18 843.23 814.43 793.80 823.50 816.94

Investments 6.26 6.26 6.26 6.26 6.26 6.26

Net Current Assets 2797.31 7075.38 8056.58 9195.80 9881.77 11017.04

Mis.Expenditure 543.89 774.92 466.89 278.41 89.93 -

Accumulated Loss 5279.06 5632.03 5195.34 5102.93 5088.88 6212.01

9418.70 14331.82 14539.50 15377.20 15890.34 18052.25

Net Worth -448.98 1189.76 1836.31 2758.47 3260.99 2227.79

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[Rs.in lakhs]Cash Credit Loan from Consortium Banks 2332.12

Interest on Cash Credit loan (12.5 % to 13%) 300.64

O D on Fixed DepositAdditional O.D against receivables

3283.881500.00

Interest on O D 379.36

Govt. Loan (VRS) 1378.00

Interest on Govt. loan (VRS) 352.43

Guarantee Commission to GOK 24.11

Sundry Creditors 1171.82

Liabilities & Commitment of K.H.D.C as on 31-03-2010

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Year ProjectedTurnover

ActualTurnover

Net Profitas perDDHPY

Actual NetProfit

2004-05 100.00 76.43 17.32 - 5.58

2005-06 100.00 69.98 19.55 - 3.53

2006-07 107.00 87.70 8.60 4.37

2007-08 112.00 94.81 9.35 0.92

2008-09 115.00 86.63 9.50 0.14

2009-10 - 98.72 - (-) 11.23

DDHPY Commitment v/s. Achievement

(Rs. in crores)

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30HIGHLIGHTS OF KEY PROPOSALS

(Rs in crores)

1) Coverage of Handloom Weavers under

NREGP with necessary budgetary

support

: 20.00

2) Extension of 10% GOI Rebate on sale of

Handloom Cloth

: 2.00

3) Central Assistance for Subsidised Saree Dhoti

Scheme for 72 lakh BPL families

: 108.00

Total : 135.60

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Thank YouPRIYADARSHINI HANDLOOMS

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