KARNATAKA HANDLOOM DEVELOPMENT CORPORATION LIMITED

PRIYADARSHINI

THE ORIGINAL HOME OF HANDLOOMS

Presented by

Shri MOHAMMAD MOHSIN , I A S Managing Director

• 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 and provides 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 UNITSa) Cotton Projectsi. NO OF WEAVERS : 11,586ii. NO. OF Intensive Handloom Development Projects – 9

Working at : 1) BANAHATTI 2) RABAKAVI3) RAMADURGA4) ILKAL5) RANEBENNUR6) GULBARGA7) BASAVAKALYAN8) BHAGYANAGAR9) E.O.C.P GADAG-BETAGERINO. 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 PROJECTSi. No. of Weavers 810 ii. No. of Silk Raw Material Cum Procurement Depots working at :1. Anekal 2. Kallur3. Tiptur4. Kollegal5. Molkalmur6. Chinthamani

 c) Preloom Process House, To provide a ready warp beams to weavers situated at Banhatti and

Ranebennur 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 Scheme – Supply of uniforms to school children

2) Subsidised Saree Dhoti Scheme to BPL families in the State

3) MADILU – Health kit to Mothers

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Vidya Vikas Scheme – (V V S)

•The Scheme offers assured livelihood to weavers and free uniform for children - launched in 1987-88• Hon’ble 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 resolvedi. As per the decision taken under the

Chairmanship of Hon’ble Textile Minister on 17.09.2009 along with Principal Secretary to Hon’ble Chief Minister of Karnataka, following points were discussed and resolved as below:-

(a) Entering into MOU with Education Department for 3 to 5 years.Hon’ble Textile Minister and Principal Secretary to Hon’ble Chief Minister of Karnataka have informed to the Managing Director of KHDC, Textile Commissioner and Secretary to Government, C&I Dept, Secretary to Government, Education Department [Primary Education] and Secretary to Government [Finance Department] for submission of proposals to entering the MOU with KHDC.

(b)Principal Secretary to Hon’ble Chief Minister of Karnataka has informed that, following action is to be initiated for release of advance to KHDC under VVS:-

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(1) 1/3 amount is to be released to KHDC during September only for the supplies 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 Hon’ble Chief Minister

of Karnataka has indicated that, 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 to provide at least Rs.13.00 crores

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Durry Preparation

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OUR PREMIER PRODUCTS :i. Traditional Silk Sarees ii. Printed Silk Sareesiii. Cotton Sareesiv. Polyester Sareesv. Chudidhar Setvi. Silk Kurtis / Made Upsvii. Soham Shirts / Silk Shirtsviii. Designer Silk Sareesix. Silk Tiesx. Jacquard Bedsheetsxi. Nisarga Bedsheetsxii. Table Linenxiii. Bed Linenxiv. Jamkana (Carpet)xv. Pillow Coverxvi. Towelsxvii.Turkish Towelsxviii.Woolen Blanketsxix. 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.AWeavers 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 Yojana In case of natural death Rs. 60,000, accidental death – Rs.150,000 and partial disablement Rs. 75,000 and permanent disablement Rs.150,000 will be paid 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 Yojana Rs. 1200 per student for each Academic year :a) 2004-05 - 449 Nos. Rs 5.38 lakhsb) 2005-06  -    733 Nos. Rs 4.40 lakhs c) 2006-07 - 959 Nos. Rs 11.51 lakhsd) 2007-08 - 1071 Nos. Rs 12.85 lakhs e) 2008-09 - 1218 Nos. Rs 14.62 lakhsf) 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 3.00crores for construction of Nekarara Bhavan in the State Budget 2010-11.

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Ensuring Better Wages to WeaversCorporation has been revising conversion charges to weavers once 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 weaversProcurement of Cloth from weavers

1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03Janata 137.38 132.27 68.19 143.50 59.60 26.03 52.46Non Janata 31.73 31.55 88.31 74.41 51.17 27.30 49.23Polyester 24.12 36.83 51.89 13.32 53.22 62.90 61.33Silk 3.81 5.25 6.04 5.45 3.87 2.48 2.89Total 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 2009-10Janata 16.78 2.89 14.43 13.80 11.32 12.21 9.40Non Janata 34.85 43.30 51.75 40.53 42.97 37.02 37.41Polyester 47.40 51.44 60.61 51.35 52.55 48.66 47.92Silk 1.22 1.75 2.14 1.68 1.99 2.09 2.24Total 100.25 99.38 128.93 107.36 108.83 99.98 96.97

(in lakhs Mtrs)

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Segment wise SalesSegment wise Sales

Segment 2009-10 2008-09 2007-08 2006-07Retails 1,610.49 1,570.89 1,693.07 1,496.27Wholesale 3,256.12 2,021.53 1,410.07 679.09SSDS 342.97 314.40 359.03 561.85VVS 4,630.14 4,731.11 5,967.56 6,011.07Other Sales 32.63 25.15 51.36 22.16

9,872.35 8,663.08 9,481.09 8,770.44

(Rs. in lakh )

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Five Year Analysis Five Year Analysis Production – Sales – Issue of Yarn – Conversion ChargesProduction – Sales – Issue of Yarn – Conversion Charges

SLNO

Particulars 2005-06

2006-07

2007-08

2008-09

2009-10

1 F.G.PRODUCTIONa) In Lakh Metersb) Value in Lakh Rs.

128.943700.72

107.363166.77

108.833250.93

99.983180.36

96.973451.98

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 Conversion Charges

1107.18 915.82 944.39 968.22 1,075.29

(Rs. in lakhs )

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Turn Around of KHDCTurn 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-Net Loss & Profit Account 2004 -05 to 2009-1010

Sl no YEAR AMOUNT1 2004-05 - 557.822 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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FROM LOSS TO PROFIT

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

NETWORTH OF KHDC

SL. NO YEAR NETWORTH12345678910

2000 – 012001 – 022002 – 032003 – 042004 – 052005 – 062006 – 072007 –082008 – 092009 - 10

185.23(-)984.54

(-)2470.0843.54

(-)448.981189.761836.362758.473260.992227.79

(Rs. in lakhs )

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PROFIT & LOSS ACCOUNT - HIGHLIGHTSPROFIT & 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.in lakhs]

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BALANCE SHEET - HIGHLIGHTSBALANCE SHEET - HIGHLIGHTSReflecting Net worth of KHDC [Rs.in lakhs]

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

[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 Deposit Additional 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 Projected Turnover

Actual Turnover

Net Profit as per DDHPY

Actual Net Profit

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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HIGHLIGHTS OF KEY PROPOSALS

(Rs in crores)

1) Coverage of Handloom Weavers underNREGP with necessary budgetarysupport

: 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

Thank YouThank You‘PRIYADARSHINI HANDLOOMS’

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