KANHIRODE WEAVERS CO-OPERATIVE P&S

SOCIETY LIMITED-FINANCE DEPARTMENT STUDY

PROJECT REPORT
SUBMITTED BY

ASHMINA ABOOTTY T.K

REG NO:GB14BBA041

Under the supervision of

UNNIKRISHNAN T
(HEAD OF DEPARTMENT)

IN PARTIAL FULL FILLMENT FOR THE AWARD OF THE

DEGREE
BACHELOR OF BUSINESS ADMINISTRATION

OF KANNUR UNIVERSITY
2015-2016
 BONUFIED CERTIFICATE
This is the certify that the project report entitled”A study on finance department of
KANHIRODE WEAVERS CO-OPERATIVE P&S SOCIETY Ltd” is prepared by
Miss.ASHMINA ABOOTTY T.K,under my guidance and supervision in partial fulfillement for
the award of degree of Bachelor Business Administration of school of Distant Education of
Kannur university

Mr.UNNIKRISHNAN T

(Faculty Guide)

Christ college Thalassery

 DECLARATION
I,ASHMINA ABOOTTY T.K hereby declare that this project work entitled “A STUDY
ON FINANCE DEPARTMENT OF KANHIRODE WEAVERS CO-OPERATIVE
SOCIETY P&S Ltd” is my work carried out under the guidance of UNNIKRISHNAN T
(Head Of Department) Submitted to KANNUR UNIVERSITY in fulfillment of the
course “BACHELOR OF BUSINESS ADMINISTRATON” is a record of original work
done by me during my period of study 2014-2017.

The empirical findings in the report are based on the data collected from the Kanhirode
Weavers Co-operative Society P&S Ltd.I also declare that this report has not been
submitted by any other persons.

DATE: ASHMINA ABOOTTY T.K

PLACE: GB14BBA041
 ACKNOWLEDGEMENT
The satisfaction and exhilaration the accompany the successful completion of any of my tasks
would be but,incomplete without mentioning the people who made it possible,whose constant
guidance and encouragement crown all my efforts with success.

It deem it to be my privilege to have complete the report with the permission of

MR.BHASKARAN secretary of Kanhirode Weavers Co-operative Society P&S Ltd.I express
my sincere gratitude for his valuable suggestions instructions then and there required and the
moral support that helped me in all walks of my project for the successful completion of the
work.

I am also glad to express my sincere thanks to people of KANHIRODE

WEAVERS CO-OPERATIVE SOCIETY P&S Ltd for giving me the information which is
required for my best project report.

Above all I also convey my deep gratitude for my parents and to almighty god for
the blessings showered on me which enabled me to complete this project fruitfully.

DATE: ASHMINA ABOOTTY T.K

PLACE: GB14BBA041

TABLE OF CONTENT
 TABLE CONTENT PAGE
NO: NO:

CHAPTER CONTENTS PAGE

NO NO
1 INTRODUCTION
STATEMENT OF THE PROBLEM
OBJECTIVE OF THE STUDY
PERIOD OF THE STUDY
METHODOLOGY
SCOPE OF THE STUDY
LIMITATIONS OF THE STUDY
CHAPTER SCHEME

2 LITERATURE REVIEW
(INDUSTRIAL PROFILE)
HANDLOOM INDUSRTY IN KERALA-AN ANALYSIS
HANDLOOM EXPORT DEVELOPMENT SCHEME
HANDLOOM INDUSTRY IN KANNUR
(COMPANY PROFILE)
ORGANISATION STRUCTURE OF K.W.C.S.P&S Ltd

3 DATA ANALYSIS &INTREPETATION

( SPECIAL REFERANCE WITH FINANCE DEPARTMENT)
DEFINITION OF FINANCE DEPARTMENT
FUNCTONS& AIMS OF FINANCE DEPARTMENT
STRUCTURE OF FINANCE DEPARTMENT
FINANCIAL ANALYSIS OF K.W.C.S.P&S Ltd
(FINANCIAL POSITION-COMPARISON OF TWO YEAR)
4 FINDINGS
SUGGESIONS
CONCLUSION
5 APPENDIX
LIST OF TABLES
1 K.W.C.S.P&S Ltd Profit & Loss a/c
(1 April 2013-31 March 2014 )
2 K.W.C.S.P&S Ltd Balance sheet
(1 April 2013-31 March 2014)
3 K.W.C.S.P&S Ltd Profit & Loss a/c
(1 April 2014-31 March 2015)
4 K.W.C.S.P&S Ltd Balance sheet
(1 April 2014-31 March 2015)
 CHAPTER 1

INTRODUCTION

Kannur is known as “city of looms and lores”.As a person of kannur ,I am proud to submit my
project report related with textile sector(Handloom products).Another reason for choosing the

Textile sector for my project is due to my interest in handloom products.For this, I selected one

of the main handloom manufacturing unit in Kerala,ie KANHIRODE WEAVERS CO-

OPERATIVE SOCIETY P&S Ltd.

KANHIRODE WEAVERS CO-OPERATIVE SOCIETY P&S Ltd is the first ISO

certified handloom co-operative society in the state.I choose this for my project because of the

contribution the society has made in export market and due to its goodwill in India and Abroad.

STATEMENT OF PROBLEM

We all know that handloom products are one of the best original safe products.The feature of
such handloom products are safe in use.But now a days the importance of handloom products are
declining.The main reason behind this is the other duplicate cheap products.this products are
manufactured by many other companies in cheap rate etc….So people were always gathering for
such manufactured low quality products.In case of handloom products this are perfectly made by
well experienced employees by their hands.They were completing such products by very
difficulty.Therefore the rate of such products may high.But the quality of products are very
high.So inorder to competete with other cheap products the value of handloom products are
decreasing by the peoples usage of other products…………………..

OBJECTIVE OF THE STUDY

The primary objectives of the project is to study about the finance department of Kanhirode

Weavers Co-operative Society P&S Ltd.

The secondary objectives are:

 To conduct a detailed study in the performance of the organization

  To assess the current position of the organization

 To predict the profitability and growth aspects

 To assess the operational efficiency of the company

 To maintain transperancy

PERIOD OF THE STUDY

The study at KANHIRODE WEAVERS CO-OPERATIVE SOCIETY P&S Ltd was conducted
only for one day.At that day I went the company and conduct a visit in their whole sections like
dyeing section,weaving section etc….And I collected the informatons related to my topic finance
department.I collected the informatons about two years.ie the period between 2013-14&2014-15.

METHODOLOGY

The study has made use of both primary as well as secondary sources of data and information.

A)Primary data:

It refers to first data collected from the primary source.The tool used for collecting

primary data was an interview guide.The collection of primary data was made from

 Interaction with management Personnel

 Interview with office staff to workers
B)Secondary data:

It refers to the data that are not originally collected but rather obtained from

published and unpublished sources.The collection of secondary data made from

 Company records
 Journals
 Magazines
 Annual reports
 Websites

SCOPE OF THE STUDY

The finance department study of Kanhirode Weavers Co-operative Society P&S Ltd help the

researcher to understand that finance department are an integral part of the organization.This

project study helps to examine the financial and accounting affairs including the preparation

and presentation of appropriate accounts and the provision of financial information for

managers.

This study is also concentrated in the financial statement of the industry like

analysis and interpretation of profit&loss a/c,balancesheet.By conducting such analysis it helps

to know the current position of the organization,year by year profits and also the growth of

organization.

The coverage of the study is confined to the handloom in the Kanhirode Weavers

Co-operative P&S Society Ltd.Statistics shows the influence of power looms section on growth

of handloom sector has been substantial and so wherever necessary references are made to

power looms sector as we.Any policy relating to any employement generating sector cannot

come in isolation.It has to be viewed from the social mieu from where it is originating.It has

take into account the technology and the economic associated with it.Hence,government

policies on in textiles and handlooms and scheme meant for the weavers have been discussed

touching up on the society’s technology.

LIMITATIONS OF THE STUDY

 One of the major limitation is lack of time.Expensive study could not be made due to lack
of sufficient time.
 It is only a micro study

 This study was conducted on the basis of secondary data(from magazines,journals,annual

reports,company records etc……)

 Lack of prior experience

 The data may not be true to same extend.There are possibilities of exaggerated claims

 The whole problem faced by handloom sector have not been revealed
 The comparative study with similar concern was not made

 The state govt.has not been revealed

CHAPTER SCHEME

CHAPTER 1:
INTRODUCTION

STATEMENT OF THE PROBLEM

OBJECTIVE OF THE STUDY

PERIOD OF THE STUDY

METHODOLOGY

SCOPE OF THE STUDY

LIMITATIONS OF THE STUDY

CHAPTER 2-
LITERATURE REVIEW

(INDUSTRIAL PROFILE)

(COMPANY PROFILE)

CHAPTER 3-
DATA ANALYSIS AND INTREPRETATION

(ANALYSIS OF DEPARTMENT)

GRAPHS,DIAGRAMS,CHARTS

CHAPTER 4-
FINDINGS

SUGGESTIONS

SUMMARY AND CONCLUSION

 CHAPTER 2

LITERATURE REVIEW
(INDUSTRIAL PROFILE)
A brief industry on Textile industry occupies a unique position in the Indian economy in terms

of its contribution to industrial production,employement and exports.The Indian textile industry

produce around 40000 million square meters of textile in a year.India’s export of sale and

clothing has crossed 14 million.China and India will be the major players for meeting the global

needs.

Domestic and international consumers consider Indian textiles as most reliable as it meets

high quality standard for its functional requirement.A handloom textile in India has a cherished

tradition.Asian Indian weavers are also considered to be the most skilled weavers in the

world.Handloom industry is the largest employement provided in India after agriculture.

Indian handloom and khadi industry played a very significant role in the non co-operative
movement associated with Indian independence initiated by our greatest leader MAHATHMA

GANDHI- father of nation.

HANDLOOM INDUSTRY IN KERALA-AN ANALYSIS

Kerala,the greenish land lies between the western ghat and Arabian sea,about 15000

square miles with varying scenic beauty,Kerala is known as epitome of India.Historically kerala

has long been a land of racial mixture and co-existence.

The handloom was derived about 2000 years ago and was brought to England by the

Romans.The process consisted of interlacing one set of threads of years (warp)with another

(weft).The warp threads are stretched lengthwise in the weaving loom.The weft ,the cross

threads,are woven into the warp to make the cloth.

Wearing remained unchanged on hundreds of years until John kay devised the flying

shuttle.which enabled a wears to knock the shuttle across the loom and back again using one

hand only.The speed of wearing was doubled and a single weaves could make cloth of any

width,where as previously two man hand sat together at a loom to make broad cloth.By 1800 it

was estimated that there were 250000 handloom in Britain.

 Tolerance and cosmopolitan outlook are the characteristics of a “KERALITE”.

This may be attributed to the religious and trade contract,which exited for centuries with outside

India.Handicraft handloom wearing irony works,wearing of coir one well known heritage of

kerala.Kerala handloom industry carries a vital role in states economy as well as in the field of

the employement.

A very large number of loom are located in rural areas.The rhythm of handloom can

be heard in almost every village in kerala.Thera are men and women weaves for whom weaving

is way of life.In early days majority of handloom weavers flowed the hereditary line.The main

communities engaged n weaving are saliyas and devangas.With the available information it is

clear that the saliyas and devangas migrated from the near by princely states.

Earlier they were producing cloth for their own consumption and for the need of their

vllage.Increase in production and improvement in transport facilities remove the hindrances of

time and easy the exchange of commodities.The skill of weaving has been passed from parent to

children.;

The woman all over the India for their fiteness of count and natural colours,texture and

gold borders praise the ‘Kerala Kasavu sarees’.Kerala s also known for ts cotton handloom trope

popularly known as ‘Kara’ cloth this has entered in the foreign market and occupied a proud

place in the garment industry.

Kerala has 14 districts from THIRUVANATHAPURAM to KASARGOD.The

handloom industry is spread all over the state.But the handloom industry is concentrated in

certain places.The common production in Kerala is ‘THORTHU’ and ‘LUNGIES’.Almost five

lakhs families are depending upon on handloom industry.

1)THIRUVANANTHAPURAM,:

The capital city has its own historical importance.There are 349 societies

and 44700 weavers working with their looms.The main products of this district is grey sarees
with kasavu,(jeri),set mund,thorthu,melmundu.

2)KOLLAM,:

This district has a few handloom production places.Here 80 co-operative

societies with 10271 registered weavers exist.The main of this district are lungies, furnishing

items,earezhu thorthu,sarees dhoties,etc………The products are mainly manufactured for

domestic market

3)PATHANAMTHTTA:

There are 7 co-operative societies and 165 registered weavers with ooms in

this district.The main products are ungies and dhothies .

4)ALAPUZHA

Aapuzha is famous for its coir products.Coir weaving is aso done with the

hands.But it is considered as the another wing.The main products are dhothies,sarees and

ungies.There are 25 co-operative societies with ooms and 2309 weavers.

5)IDUKKI

In this district there are 11 societies and 414 weavers with their ooms.The main

products are sarees ,ungies etc…….

6)KOTTAYAM

In this district,the main products are ,’panimund’ and ungies,bedsheet,sarees

etc….There are 16 co-operative societies wth 1853 weavers.

 7) ERANAKULAM

‘ Chennamangaam saree ‘ which is famous in Keraa is main products of this

district.Another products are doube dhothies,synthetic and sik sarees.There are 30 societies and

8494 weavers with their ooms.

8)THISSUR

The cutur capita of Keraa has an important roe in the tradition of

Keraa.Koothampay saree is famous product in this distict.Other products are set

mundu,jary,dhothies,ungies etc………There are 30 societies and 6055 weavers

9,)PAAKKAD

This district is very popuar for its handoom weaving.The main products are

dhothies ,ungies and sik sarees production aso started recenty.There are 45 societies and 11236
weavers

10)MAAPURAM

A number of musim weavers are here.Furnishng items and sarees are the main

products.There are 13 societies and 2774 weavers.

11)KOZHIKODE

The famous ‘maabar oom’ came from this pace.The caico coth was aso introduced

from this pace.The other main products are furnishing products,jacquard bed sheets,tabe mats

etc……The products are mainy coming from maabar oom.

 12)WAYANAD

There are ony 4 societies 136 weavers in this district.Much importance is not given to

handoom sector in high range area.

13)KANNUR

Kannur is caed as the ‘Manchester of keraa’.The main products are shirtings,jacquard

items,furnishing items,crepe,sateen sheets etc…..There are 73 societies and 13667 weavers.

14)KASARGOD

Kasargod is the north most district n keraa.Here sarees are produced mainy.There are 11
societies and 3402 weavers.
HANDOOM EXPORT DEVEOPMENT SCHEME
The importance of handloom sector in the National economy cannot be over

emphasized.On account of having the advantage of flexibiity ofsmascaleproduction,uniqueness

in innovation and adaptability the handloom sector can contribute towards export earnings in a

big way.Export of handloom therefore been identified as a”Thrust area” for the over a

development of the sector.The government has been exploring the possibility of making

optimum use of the resource to enhance production capabilities of exportable products.

In order to provide substantial inputs to the export of handloom fabric,made

ups,and other handloom items from the country,a scheme for development of exportable

products and their marketing was introduced during 1996-97.Under the scheme assistance is

availabe for developing exportable products,bulding up production capacity for export and there
after marketing it.

National and state eve handloom corporations,Co-operative societies and handloom

co-operative societies affiliated to/registered and sponsored bycouncils/Coporations.Handloom

Export Promotion Counci(HEPC),Association of Corporations and Apex Societies of

Handoom(ACASH),Handcrafts and Handloom Export Corporaiton(HHEC),Indian Silk Export

Promotion Council(ISEPC)

Beside thie,there are some central government schemes which are available for the

development of the handloom sector;they are

1)Integrated handloom development scheme

2)Marketing and export promotion scheme

 3)Handloom weavers comprehensive welfare scheme

4)Diversified handloom development

ieve that by doing sincere effects in the

handloom sector for brand building and design development they would make this target

achievable.

”The town of Export Excellence”status is one of the major demands of the handloom

exporters here.They say that the town rightly deserved this recognition because exports from

here account for 12 percent of total handloom exports in the country.

About 15 handloom exporters in Kannur together clock Rs 300 crore turnover.

European and United States firms are increasingly seeking furnishing,tapestries and made ups

from Kanpur handloom,provided the weave is good.

Weavers in Kanpur are taking the tough climb up the quality-skill curve,not on the

glitter of kerala saree,but through ts fine-woven furnishing supplies for export.

 (COMPANY PROFILE)
The kanhirode Weavers Co-operative P&S Society Ltd No.L L 44 was registered on 16-09-

1952 as producer co-operative society under the Act of VI of 1932,(Madras)and started its

function on 5-10-1952.The intention to start the esteemed society was to provide regular

employement to the poor workers at a reasonable wages and there by to improve the economic
conditions of the weavers.

The Kanhirode Weavers Co-operative P&S Society Ltd is one of the main handloom

manufacturing unit in Kerala.The society is located in Kudukimotta about 20 Km from Kannur

to.The society also known as ”Weaveco”.

Initiay the weavers suppied around the viage ‘thorth’ and ‘pudava’,which was the main product
of the society and ater on buock cart were used to carry the goods.The society is engaged for
manufacturing of various kinds of cotton fabrics which is suitable for export market as we as oca
market.

The 1964-65s was the period,which gave the society a hope to shine in the textie word.The

society started producing shirting&ower count ungies,which were sod in different parts of

country through agents.During 1973 -74 the society started producing crepe fabrics,which

attracted orders of merchant exporters.The trend setters started producing furnishing fabrics

suitable for export market and supped the same to merchant exporters.

The Kanhirode Weavers Co-operative society is an ISO 9001-2000 certified company.It is the first ISO

certified handoom co-operative society in the state.The society has very good market for its products.The
contribution of the society in the of craftsmanship was we appreciated and awarded with ,’God meda,’ for
the ‘Best performance’by the Ministry of texties’,Government of Indian during 1993-94.

Now they having workforce of 500 workers and 300 working ooms with various width capacity from 48-

90 inch.They are having 50 switching machine and 2 dehumidification rooms to keep the geniuies of

fabrics.
The society’s address sha be Kanhirode viage,Kanhirode post in the Tauk of Taiparamba,in the

Cannanore district.Its operation sha be confined toKanhirode and Kuttiyatur Amsam in

Taiparamba Tauk,Munderi and Anjarakandy Amsams in Kannur and Koodai in Teichery Tauk.

The important requirement for any business activity are and,abour,capita,organization etc….The
society has permanent buiding,adequate workforce,storage paces and better working

environment requirement as per the Factory Act.The company has adequate equipement for

manufacturing as we as other documentation requirements.A these facilities are very hepfu in the
success of this society.The workers enjoy the atmosphere within the firm sufficient

space,machineries and attractive wages makes the personne invoved to carry on the work without

any hazards.However,the company stricty supported to a mandatory requirements of safety for

fire extinguishers,first aid facities etc…….

VARIOUS FACIITIES AVAIABE IN KWCS-

 Dehumidifacation rooms for moisture contro of fabrics.
 Cabinet dyeing machine with capacity of 250Kg
 300 working ooms with up to 90 inches.
 Dyeing chamber with capacity of 500Kg
 10 sik weaving oom width upto 90 inches
 In house stitching unit with 30 juki machines.

VISION OF KWCS-
A complete gage of handloom fabrics inheriting age-old tradition of classic warp-weft

combinations,importing modern characterizes of convenience,without compromising up on the

core values of quality.

The fabric range has been created through adequate research and expertise that it will
enable Indian textiles to acquire a competitive edge in global market.
ACTIVITIES OF THE SOCIETY-

 The main requirement of yarn ike 60’s 40’s 2/17s and 2/40s,are purchased from
co-operative ginning mis and government agents and suppied to the weavers for
weaving.

 Based on the order,the society aso exports handoom fabrics to the foreign country
ike France,US,Itay,etc…..

 The woven cothes are taken back the society by paying wages to the members and
converted into products and marketed through retai outets and by participating
nationa handoom export etc…..

ACHIVEMENTS OF THE SOCIETY-

 The first ISO-9001-2001 certified primary-handoom co-operative society in the

Keraa

 The Govt.of India had selected this society for participation in international Trade
Fair at Frankfurt,Germany during 1995-2004

 The contribution of the society in the fied of craftsmanship awarded ‘God Meda’
for the best performance by Govt.of India,Ministry of Texties,during 1993-1994

 Sahakarana Mahathwapoorna Award 2006

LOCATON-
Kannur ‘City of ooms and ores’ ies in the northern part of Keraa.The Kanhirode

Weavers Co-operative society ocated at Kudukkimotta,13 Km away from Kannur

towards Mattanur.,
MAIN PRODUCTS OF K.W.C.P.S.S-

 Ungies
 Shirtings
 Printed bedsheets
 Dhoties
 Towe
 Thorth
 Furnishing fabrics
 Jacquard items
 Crepe
 Tabe coth
 Napkins
 Cushion covers
 Curtains
 Sofa cover

K.W.C.P.S.S BENEFITS TO WORKERS-

Apart from actua wage,the foowng benefits are aso provided to workers,

 Contributory provident fund:- 12%

 Bonus - (8.33.20%)
 Casua eave wages - 5%
 Oom main aowance - 3%
 Medica eave aowance - 5%
 Gratuity - 5%
 Festiva hoiday wages - 5;%

SALES TURN OVER FOR THE LAST 6 YEARS:-

2OO5-2006 Rs.29526484/
 2006-2007
Rs.22495360/
2007-2008
Rs.25225806/
2008-2009
Rs.22868336/
2009-2010
Rs.27068336/
2010-2011
Rs.23719552/
2011-2012
Rs.31063268/
2012-2013
Rs.33053976/
2013-2014
Rs.33751064/
2014-2015
Rs.33517058/

SHOW ROOM & DEPOT:-

 Kudukkimotta
 Taliparamba
 Iritty
 Kuttiattoore

 K.W.C.P.S.S PROFIE

Name of the society - The Kanhirode Weaver’s Co-operative P&S Society td

Trade Name - WEAVECO

Date of registration - 6/09/1952

Address - P.O Kanhirode , Koodai Via)Cannanore (Dist)

Keraa-670592

91-0497-2857259 91-0497-2857865

Te –Fax - 91-0497-2858546

Emai - [email protected]

[email protected]

Website - www.weaveco.com

Grams - ‘Kanji weave’,Koodai

Bankers - Kannur district Co-op Bank

State Bank of India

State Bank Of Travancore

Auditors - Dept of Co-operative Society,

Asst.Registrar Office,

ORGANISATIONAL STRUCTURE IN K.W.C.S.P.S.S

 BOARD OF DIRECTORS

PRESIDENT

SECREATARY

MANAGEMENT
REPRESENTATIVE

MANAGER
EXPORT&
ADMINISTRATION
CHAPTER 3
 SCRUTINY AND INTERPRETATION
(SPECIAL REFERENCE WITH FINANCE DEPARTEMENT)
DEFINTION FOR FINANCE DEPARTMENT-

The part of an organization that manages its money.The business functions of a

department typicay incude panning,organizing,auditing,accounting for and controing its

company’s finance

FINANCE DEPARTMENT-
Finance is important element in business.It is the integral part of modern economic life

and occupies important pays in a economic life and occupies important pays in a economic

activities.It is considered as the life blood of business.Finance refers to money, cash or fund

available for operation of the business,without finance a business cannot function.Finance is

required to bring a business into existence,to keep it alive and see it growing

Financial management performs to various functions.They are financial panning

procurement of funds,utilization of funds,disposal of surplus,financial control etc.Now a days the

importance of financial management has increased because of the commitment of the

management to various parties interested in the organization.

The KWCS has we efficient finance department.The secretary of this society head this

department.They coect fund from various sources such as members share,Govt share

etc…They wi get 1.20 crores cash credit from NABARD.Finance department is under the contro

of finance controer.So, he has severa fun ctions to perform in cose consutation with the chief

executive of the organization.Finance department is the integral part of overallmanagement.

 The word ‘FINANCE’ come from the latic word’FINIS’.Finance is the art and science

of handling.It is the management of flows of money through an organization.In the modern

word every organization,private and pubic runs on money.That includes

families &business,government and non-profit organization.Money touches everything we

do.Money is behind most everything we see each day.

Financial department is mainly concerned with taking decisions like investment

decision,finance decision,dividend decision,liquidity decision and decision regarding

reporting,monitoring and controlling funds.

FUNCTIONS OF FINANCE DEPARTMENT

 Finance panning and control
 Cost recordings
 Treasury operations
 Financial Book keeping and finalization of accounts
 Management information system corporate panning
 Allocation funds to the production requirements
 Preparation of financial accounts like cash book,bill voucher,bank
books,journals,invoces etc……………
 Transfer the fund to Bank account
 Reconcilation of bank balances
 Analysis and appraisal of financial performance
 Repayment of laons and investments
 Receipt of fixed deposits
 Budgeting
 Computation of income tax,sales tax etc…
 Preparation of trial balance
 Identify the sources of funds.
 Disposal of surplus amount
 Analysis and evaluation of financial function

AIMS OF FINANCE DEPARTMENT-

 Book keeping procedures

  Creating a balance sheet and profit and loss account
 Providing management information
 Management of wages
 Raising of finance

MANAGER OF OFFICE &

ADMINISTRATION

STRUCTURE OF FINANCE DEPARTMENT

FINANCE MANAGER / CE

INTERNAL AUDIT
ACCOUNTANT

JUNIOR CLERK

In finance department,there is a manager as well as an accountant in order to assist others.They

prepare day book,general ledger,personal ledger,stock register etc…..The accounts are audited
by a Statutory Auditor.The auditing cost will be paid by the Govt.

SENIOR CLERK BOOKS AND ACCOUNTS-

The Kanhirode Weavers co-operative Society Ltd maintains two types of books namely

ledgers and subsidiaries.The different ledgers and registers maintained by the company consist

of;

 CASH BOOK
 BANK BOOK
 GENERAL JOURNAL
 SALES JOURNAL
 PURCHASE JOURNAL
 CREDITORS LEDGER
 DEBTORE LEDGER
 ADVANCE REGISTERS
 STORE PURCHASE LEDGER
 STORE ISSUE REGISTER
THE VARIOUS SOURCES OF CAPITAL OF K.W.C.S.P&S Ltd-

To produce and sell there must be adequate finance for fixed assets,raw materials,and the
other supplies to meet day to day expenditure of the enterprise.The company by mean of equity
funds and borrowed funds raised funds.Subsidy have been received from government of
kerala.Society is availing NABARD C.C,and extend of Rs.120,0001.

DEPOSITS:-,(BY LAW NO .16)

Deposits may at the description of the Board Of Directors be received at time from

members or non-members.Deposits from the

 Thrift deposits:-

Every weaver member shall,so long as he continued to be a member pay the

rate of six paise for every rupee of wages earned by him.

 Recurring deposits:-

A recurring deposit is a deposit made by a person who undertake to pay to

the Society every month a fixed amount of one rupee or a multiple or a submultiple thereof for a
period of 12,24,45,84 or 132 months.

 Fixed deposits:-

A fixed deposit is a deposit of a fxed amount of money for a fixed period of

time.No fixed deposit shall be received for a sum less tha Rs.5/- or an exact multiple thereof or

for a perod less than six months.

 Insurance
  Homesafe deposits

ACCOUNTING PROCEDURE OF KWCS:-

The systematic representation of accounting procedure of KWCS are as follows;

 Journal
 Sub ledger
 Main ledger
 Trial balance
 Profit&Loss account
 Balancesheet

DATA ANALYSIS AND INTERPRETATION

FINANCIAL ANALYSIS OF K.W.C.S.P&S Ltd

(comparison of financial statement of two years)

PROFIT AND LOSS A/C:1-APR-2013 TO 31-MAR-2014

PARTICULARS 1-APR-13 to 31- PARTICULARS 1-APR-13 TO 31-MAR-
MAR-14 14
Opening stock Sales accounts
Stock of finished goods 24023468.64 Retail sales handloom fabrics 33780936.64
Stock of raw material 17426661.12 Retail sales handloom fabrics 2912074.68
6596807.52 (rebate) 22677705.61
Purchase Accounts Sales cotton waste
Purchase dyes& chemicals Wholesale handloom fabrics 29871.90
Purchase dyes& chemicals 12887122.41 Wholesale handloom fabrics 3995942.05
Purchase ETP chemicals 2743207.31 (interstate) 4165342.40
Purchase firewood 17495.00
Purchase foam sheet 74686.00 Income (direct)
Purchase micsellenious 26027000 Discount on MGPS scheme
Purchase packing materials 46630.00 (NHDC) 1322569.51
Purchase polyster flore 10523.00 Discount received 24656.00
Purchase yarn 38424.50 Freight charge received
Purchase yarn(interstate) 85090.00 Hank yarn subsidy 200.00
8394420.50 Output vat 5% 4170.00
Expenses(direct) 1216376.00 Purchase incentive 754119.00
Bonus paid Subsidy-dyes& chemicals 1649.30
Processing charges 2334695344 Subsidy-freight 140553.81
Casual leave wages 2822803.00 122751.00
Cloth conversion 100275.00 Closing stock
Commission 510526.00 27294384.70
Coolie charges 125576.00 Stock of finished goods
Diesel,oil,repair charges 175395.00 Stock of raw material 21526417.10
Discount paid 916387.00
104803.00 5767967.68
Dyeing wages 337989.58
Electricity charges 780447.71
Employees linked 366000.00
insurance fund 67700.00
ESI society for members
Exhibition expenses
Fire &general insurance 484522.42
Premium 390219.00
Freight charges 43026.00
Gratuity
Handloom mark 233469.00
941645.00
Handloom training 7000.00
Expense 90850.00
HLWWF contributory society
members
Input tax 5% 17874.00
ISO expenses
Loom Maintenance 143980.39
Medical Benefit 34434.00
Overtime wages 24023.00
PF administration charge 62100.00
10355.00
PF Contributory society for
150294.00
members 1339505.00
Repairs& maintenance
Salary design staff
 Spare parts repairs maintenance 501508.00
HL 497939.00
SWWF contributory society for 46803.00
members
TDS 66072.00
Testing charges 15282.00
Weaving accessories 15169.00
Weaving wages 80656.00
Winding wages 7684767.42
Yarn cloth printing& colouring 3956161.52
charge
Yarn twisting charges 179166.40
GROSS PROFIT C/O
22230.00

EXPENSES(indirect) 62397890.93 62397890.93

Advertisement charges
Affiliation fees
Anamath expense provision 6178150.38
Audit cost 71824.00
Audit fee(IT) 800.00
Bank charges 2077.50
Bank commission 73176.00
Bonus paid-staff 11236
Bonus reserve-staff
Bonus reserve-worker 537.00
Books &forms 163.00
Co.op employees welfare fund- 84700.00
staff contribution 4900.00
Depreciation 325634.00
Electricity charges –contigencies 3231.00
ESI contribution society staff 13240.00
General body expense
Gratuity staff 746604.83
Honarerium contigencies 38020.00
Interest cash securities 14181.00
Interest paid 13230.00
Labour welfare fund staff 498256.00
Legal expenses 600
Medical allowance to staff 2883.00
Miscellaenous expense 702848.00
Office expenses 176.00
PF contribution society for staff 5750.00
PL leave salary 4000.00
Postage 593629.05
Printing& stationary 4795.00
Production incentive paid staff 303795.00
Production incentive reserve staff 178901.00
Production incentive reserve 4808.00
worker 58120.00
Professional tax society 108870.00
Rates &tax 13587.00
Remuneration to returning
officer 81413.00
Salary office &supervisory staff
Sitting fee 2500.00
Subscription of daily 45825.00
Sweeping &cleaning charges 300.00
SWW fund contribution society
staff 2041063.00
Telephone charges 10400.00
Terminal surrender reserve 6386.00
Travelling allowance 17750.00
3072.00
NET PROFIT
24054.00
26961.00
338

KANHIRODE WEAVERS CO-OPERATVE P&S SOCIETY

LTD
P.O KANHIRODE

VIA KOODALI

KANNUR

Balance Sheet
1-Apr-2013 to 31-Mar-2014

LIABILITIES 31- ASSETS 31-

Ma Ma
r- r-
201 201
4 4
Capital Account Fixed
Govt Share Captital assets
Share Capital Members Building
Loans (Liability) Movables
Bank OCC A/c(Bank ODA/c) Computers
Land
Current Liabilities Motor
Sundry Creditors UPS
Adjusting Heads Due by Society Water
Deposits purifier
Dividend Due
Grant Investments
Other Funds Debenture of
Trade Charges Due KSEB
Share-all
Suspense account india
Establishment &contingencies handloom
Reserve &provisions fabrics&
marketing co
Statutory funds& reserves op
Bad &doubtful debt reserve Share-kannur
6 co op hospital
society
Share –
5 kannur dist
fruits
4 &vegetables
co op society
Share –
3 kannur
printing
2 &publishing
co op society
Share co op
1 insurance
society ltd
0 Madras
Category 1 Category 2 Category 3 Category 4 Share
kanhirode
Building fund weavers co op
Common good fund employees
Dividend equalization fund store
Honarerium Share kannur
Members relief fund co op
Professional education fund spinning mills
Reserve fund ltd
SWW Fund Share kannur
co op yarn
Profit and loss a/c society
Opening balance Share kannur
Current period dist co op
Less:transferred bank
Share kannur
dist
kalitheetta
nirmana co op
society
Share kannur
rubber
marketing co
op society
Share kannur
textile
processing
society(KAN
TEX)
Share kerala
enviro
infrastructure
ltd
Share kerala
state
handloom
weavers co op
Share kerala
state
sericulture co
op society
Share
KSCHCAMS
Ltd
pariyaaram
Share
Malabar
warping
sizing ind co
op society
Share
petrofils co
op society
Share quilon
co op
spinning mills
ltd
Share
regional agro
industrial co
op society
Share
sahakarana
press
Share the
edakkad
block leather
workers co op
 DATA ANALYSIS AND INTERPRETATION

CURRENT RATIO
Current ratio is most common ratio measuring liquidity.It represents the ratio of current

assets to current liabilities.It is also called working capital ratio.It is calculated by dividing

current assets by current liabilities.

CURRENT ASSETS=CURRENT RATIO÷CURRENT LIABILITIES

The current ratio of firm measures its short term solvency.In a sound business a current

ratio of 2:1 is considered as ideal one.A high ratio indicates sound solvency possessions and low
ratio indicate inadequate working capital.

Year Current Assets Current Liabilities Current Ratio

]2009-10 18340091.18 6561570.98 ]2.795076246
2010-11 16110941.3 7259315.74 2.219347095
2011-12 17605852.92 6409749.94 2.746730073
2012-13 24067423.99 7476298.39 3.219163112
2013-14 24324320.27 7246197.69 3.356839174
Source:Annual reports of the company
 4

3.5

2.5

1.5

0.5

0
]2009-10 2010-11 2011-12 2012-13 2013-14

INTERPRETATION
As a conventional rule,idle current ratio should be 2:1.The actual current ratio is 2:1 it
can be reasonably being taken as a sign of liquidity or the short term solvency of concern.The
company has maintained the current ratio favorable from 2009-10 to 2013-14 but the year 2012-
13 the ratio was highly increased to 3.35.The main reason for increasing current ratio in the year
2012-13 is dipping the sale in the year,it is because of increased price of the products.So the
block increased.To recover this problem the sales have to increase.

QUICK RATIO OR ACID TEST RATIO:-

This ratio shows the relation between quick assets,to quick liabilities.It is determined by
dividing quick assets by current liabilities or quick liabilities.

Quick assets =Quick Ratio÷Current Liabilities

The term quick assets refer to current assets,which can be converted into cash
immediately.It consist of all current assets except stock and prepaid expenses.Quick liabilities
comprise current liabilities excluding bank overdraft.Quick ratio of 1:1 is considered satisfactory
as a form can easily meet all its current liabilities.If the ratio less than 1:1 then the financial
position of the concern is sound and good.

QUICK RATIO

YEAR QUICK ASSETS

CURRENT QUICK RATIO
LIABILITIES
]2009-10 8764933.18 6561570.98 ]1.3357979668
2010-11 4876367.3 7259315.74 0.671739249
2011-12 3340756.09 6409749.94 0.52119913
2012-13 5225618.99 7476298.39 0.698958056
2013-14 4720060.27 7246197.69 0.651384419
SOURCE:ANNUAL REPORTS OF THE COMPANY

QUICK RATIO
1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
]2009-10 2010-11 2011-12 2012-13 2013-14
INTERPRETATION
Quick ratio is expressed as quick asset/quick liability.Quick ratio of 1:1 is considered to
represent a satisfactory financial position.If actual quick ratio is equal or more than the standard
quick ratio of 1:1, the conclusion can be concern is liquid and so it can pay 0-fits short term
liability out of its quickly.The company has not maintained quick ratio favorable from2 009-10
to 2013-14. In year 2011-12 the company shows lower quick ratio because of the company had
highest stock in the year.
ABSOLUTE LIQUIDITY RATIO
This ratio is the most rigorous and conservative test of a firm’s liquidity Position. It
gives a more meaningful measure of liquidity when used in conjunction with current and acid
test ratio . Absolute liquidity ratio relates the sum of cash and marketable securities to the current
liabilities it is expressed as follows,:

CASH + MARKETING SECURITIES

ABSOLUTE LIQUIDTY RATIO =CURRENT LIABILITIES

The ideal absolute liquidity ratio is 0.75:1;

FINDINGS

 Gross profits and net profits are increased during the period of 2013-14 and 2014-15
which indicates that firm’s efficient management in manufacturing and trading
operations.
 SUGGESIONS

 The profit of the company is not in a good position .For that company has to take
Alternative Actions such As
 Increasing in procurement in company’s products.
 Production and control in Expenses like Administrative,selling etc