Presented by

Shri MOHAMMAD MOHSIN , I A S

Managing Director

KARNATAKA HANDLOOM DEVELOPMENT CORPORATION LIMITED

PRIYADARSHINI
THE ORIGINAL HOME OF HANDLOOMS

The activities of Karnataka Handloom Development Corporation

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

PRODUCTION UNITS a) Cotton Projects i. NO OF WEAVERS : 11,586

ii.
1)
2) 3) 4) 5) 6) 7) 8) 9)

NO. OF Intensive Handloom Development Projects 9 Working at :

BANAHATTI RABAKAVI RAMADURGA ILKAL RANEBENNUR GULBARGA BASAVAKALYAN BHAGYANAGAR 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

b) SILK PROJECTS
i. ii. 1. 2. 3. 4. 5. 6. No. of Weavers 810 No. of Silk Raw Material Cum Procurement Depots working at : Anekal Kallur Tiptur Kollegal Molkalmur 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

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

Vidya Vikas Scheme (V V S)

The Scheme offers assured livelihood to weavers and free uniform 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.

Vidya Vikas scheme Issue to be resolved

i. As per the decision taken under the Chairmanship of Honble Textile Minister on 17.09.2009 along with Principal Secretary to Honble Chief Minister of Karnataka, following points were discussed and resolved as below:-

(a) Entering into MOU with Education Department for 3 to 5 years. Honble Textile Minister and Principal Secretary to Honble 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 Honble Chief Minister of Karnataka has informed that, following action is to be initiated for release of advance to KHDC under VVS:-

(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 Honble Chief Minister of Karnataka has indicated that, minimum 4-5% upward revision has to be made every year.

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

10

Durry Preparation

OUR PREMIER PRODUCTS :

i. Traditional Silk Sarees ii. Printed Silk Sarees iii. Cotton Sarees iv. Polyester Sarees v. Chudidhar Set vi. Silk Kurtis / Made Ups vii. Soham Shirts / Silk Shirts viii. Designer Silk Sarees ix. Silk Ties x. Jacquard Bedsheets xi. Nisarga Bedsheets xii. Table Linen xiii. Bed Linen xiv. Jamkana (Carpet) xv. Pillow Cover xvi. Towels xvii. Turkish Towels xviii.Woolen Blankets xix. Janatha Sarees / Dhoti

11

12

Woman Weaver with Jacquard Loom

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

13

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 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

ii) Sahashikshana Yojana

Rs. 1200 per student for each Academic year :
a) b) c) d) e) f) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 449 Nos. 733 Nos. 959 Nos. 1071 Nos. 1218 Nos. 1327 Nos. Rs Rs Rs Rs Rs Rs 5.38 lakhs 4.40 lakhs 11.51 lakhs 12.85 lakhs 14.62 lakhs 15.92 lakhs

14

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.

15

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.

16

Living cum Workshed

17
Weavers Special Package Component by GOK sanction during 2007-08, 2008-09, 2009-10 & 2010-11 [Rs.in lakhs] 2007-08 Installation of looms & accessories Upgradation & modernization of existing looms Skill upgradation & training for weavers Interest subsidy on working capital loan Working Capital Grant for Raw Material Purchases Reimbursement of 20% rebate Modernisation of PTPH Interest on thrift fund SCP/STP weavers package Reimbursement of VAT (2006-07 & 2007&08) 360.58 23.00 12.49 212.49 .. 1560.00 . 317.17 75.00 165.00 107.83 . 1106.00 . 208.00 173.00 700.00 200.00 47.00 187.00 .. 700.00 .. 715.80 260.00 239.00 170.00 150.29 125.00 80.00 96.00 17.99 20.00 23.89 43.47 2008-09 36.00 2009 -10 2010-11 (proposed) -

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.

18

Ensuring Better Wages to Weavers

Corporation 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.

19

Procurement of Cloth from weavers

(in lakhs Mtrs)
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 Janata 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 9.40 Non Janata 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

20

Segment wise Sales

(Rs. in lakh )

Segment Retails Wholesale SSDS VVS Other Sales

2009-10 1,610.49 3,256.12 342.97 4,630.14 32.63 9,872.35

2008-09 1,570.89 2,021.53 314.40 4,731.11 25.15 8,663.08

2007-08 1,693.07 1,410.07 359.03 5,967.56 51.36 9,481.09

2006-07 1,496.27 679.09 561.85 6,011.07 22.16 8,770.44

Five Year Analysis

Production Sales Issue of Yarn Conversion Charges
SL NO

21

(Rs. in lakhs )

Particulars F.G.PRODUCTION
a) In Lakh Meters b) Value in Lakh Rs.

2005-06
128.94 3700.72

2006-07
107.36 3166.77

2007-08
108.83 3250.93

2008-09
99.98 3180.36

2009-10
96.97 3451.98

Sales Issue Of Yarn Conversion Charges

6,998.38

8,770.44

9481.09

8663.08

9,872.35

2539.66

2182.00

2247.41

2157.67

2,327.02

1107.18

915.82

944.39

968.22

1,075.29

Turn Around of KHDC

From Loss to Profit

22

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

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

(Value in Lakhs)
Sl no
1 2

23

YEAR
2004-05 2005-06

AMOUNT
- 557.82 - 352.97

3 4
5 6

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

436.70 92.41
14.04 (-) 1123.12

24

F R O M L O SS T O P R O F I T
(Rs. in lakhs )

436. 70 500 0 0 -500 -1000 1 2 3 4 5 6 7 8 9 10 0 0 0 0 0 92. 41 0

-348. 72 -352. 97 -557. 82

Particulars Net loss / profit

2004-05 - 557.82

2005-06 - 352.97

2006-07 436.70

2007-08 92.41

2008-09 14.04

25

NETWORTH OF KHDC
(Rs. in lakhs )

SL. NO 1 2 3 4 5 6 7 8 9 10

YEAR 2000 01 2001 02 2002 03 2003 04 2004 05 2005 06 2006 07 2007 08 2008 09 2009 - 10

NETWORTH 185.23 (-)984.54 (-)2470.08 43.54 (-)448.98 1189.76 1836.36 2758.47 3260.99 2227.79

26

PROFIT & LOSS ACCOUNT - HIGHLIGHTS

[Rs.in lakhs]

PARTICULARS
Income Sales Other Variation in Stock Prior period adjustments

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

7643.44 236.11 -566.40 227.37 7540.52

6998.38 475.40 537.37 218.02 8229.17

8770.43 634.10 -1177.99 413.02 8639.56

9481.09 1051.60 202.97 58.73 10794.39

8663.08 1017.10 -585.97 9094.21

9872.35 935.31 524.87 11332.53

Expenditure Cost of Production Administration Expenses Selling & Distribution expenses Finance Charges Depreciation Prior period adjustments 4879.66 2142.82 653.91 382.44 39.51 5693.67 1995.94 431.70 420.00 40.83 5260.58 1874.77 545.99 481.31 40.21 7113.15 2367.71 715.95 465.68 39.49 5659.10 2263.92 639.90 458.24 37.34 21.67 7493.97 3454.37 641.30 810.09 36.85 19.07

8098.34
Net Loss/Profit -557.82

8582.14
-352.97

8202.86
436.70

10701.98
92.41

9080.17
14.04

12455.65
-1123.12

27

BALANCE SHEET - HIGHLIGHTS

Reflecting Net worth of KHDC [Rs.in lakhs]

PARTICULARS
Funds Employed Share Capital Reserves & Surplus Long Term Loan Short Term Loan

2004-05
4438.21 935.76 1129.96 2914.77

2005-06
4438.21 3446.80 1800.28 4646.53

2006-07
4438.21 3336.88 1800.28 4964.13

2007-08
4438.21 3963.80 1859.86 5115.33

2008-09
4438.21 4249.46 1978.51 5224.16

2009-10
4438.21 4235.12 2088.85 7290.07

9418.70 Application of Funds

Fixed Assets 792.18

14331.82

14539.50

15377.20

15890.34

18052.25

843.23

814.43

793.80

823.50

816.94

Investments
Net Current Assets Mis.Expenditure Accumulated Loss

6.26
2797.31 543.89 5279.06 9418.70

6.26
7075.38 774.92 5632.03 14331.82 1189.76

6.26
8056.58 466.89 5195.34 14539.50 1836.31

6.26
9195.80 278.41 5102.93 15377.20 2758.47

6.26
9881.77 89.93 5088.88 15890.34 3260.99

6.26
11017.04 6212.01 18052.25 2227.79

Net Worth

-448.98

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

Cash Credit Loan from Consortium Banks

28

[Rs.in lakhs]
2332.12 300.64

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

O D on Fixed Deposit Additional O.D against receivables

Interest on O D Govt. Loan (VRS) Interest on Govt. loan (VRS) Guarantee Commission to GOK Sundry Creditors

3283.88 1500.00
379.36 1378.00 352.43 24.11 1171.82

DDHPY Commitment v/s. Achievement (Rs. in crores)

Year Projected Turnover
100.00 100.00 107.00 112.00 115.00 -

29

Actual Turnover
76.43 69.98 87.70 94.81 86.63 98.72

Net Profit as per DDHPY

17.32 19.55 8.60 9.35 9.50 -

Actual Net Profit

- 5.58 - 3.53 4.37 0.92 0.14 (-) 11.23

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

30

HIGHLIGHTS OF KEY PROPOSALS

(Rs in crores)
1) Coverage of Handloom Weavers under NREGP with necessary budgetary support Extension of 10% GOI Rebate on sale of Handloom Cloth Central Assistance for Subsidised Saree Dhoti Scheme for 72 lakh BPL families : 20.00

2) 3)

: :

2.00 108.00 135.60

Total :

31

Thank You
PRIYADARSHINI HANDLOOMS