“A STUDY ON ACCOUNTING TAXATION AND FINANCE” IN

KARNATAKA SOAPS AND DETERGENTS LIMITED

Report submitted in partial fulfillment of the requirement for the

award of the Degree of

BACHELORS OF COMMERCE

Of

BANGALORE UNIVERSITY (2023-2024)

SACHIN.SHEKAR

U03MU21C0055

Under the guidance of

Mr. Babu V

Head of Department,

Department of Commerce & Management

ST PAULS COLLEGE

MS. PUNIDA ARPITHA

PROFESSOR,
DEPARTMENT OF COMMERCE AND MANAGEMENT

ST PAULS COLLEGE

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 DECLARATION

I hereby declare that “A STUDY ON ACCOUNTING TAXATION AND FINANCE” IN

KARNATAKA SOAPS AND DETERGENTS LIMITED” is the result of the project work
carried out by me under the guidance of Mr. Babu V and Ms.Punida Arpitha in partial
fulfillment for the award of the Bachelors of Commerce by Bangalore University.

I also declare that this project report is the outcome of my own efforts and that it has not been
submitted to any other university or institute for the award of any other Degree or Diploma or
Certificate.

SACHIN.SHEKAR

(STUDENT)

Place:

Date: Register Number: U03MU21C0055

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 ACKNOWLEDGEMENT

I dedicate this page to convey my deepest and heartfelt appreciation for all the people who
approved to complete my Field Study Report.
I would like to thank our Beloved Principal, Rev. Father Thomas M J, ST PAULS
COLLEGE, Bangalore. I bow and thank Dr. Babu V sir and Punida Arpitha mam for their
constant support and guidance in completing this report.
My sincere gratitude and regards to Dr. Radihka N who helped in improving skills and for
her special guidance in all the way to complete this report efficiently.
This has been a great learning opportunity for me and I am highly indebted to the above
mentioned people for giving me this opportunity.

I dedicate this page to convey my deepest and heartfelt appreciation for all the people who
approved to complete my Field Study Report.

I would like to thank to Sri. Ravi H Bedsur AGM (Accounts), KS&DL Bangalore.

I would also thank Sri. K.C. Sundara Murthy Manager (Accounts), KS&DL for his constant
support and guidance in completing this report.

My sincere gratitude and regards to Sri. G. Ravi, Manager (Accounts) KS&DL, who helped
in improving skills and for his special guidance in all the way to complete this report
efficiently.

I would also like to thank the KS&DL management to provide me with the internship in your
prestigious company.
This has been a great learning opportunity for me and I am highly indebted to the above
mentioned people for giving me this opportunity.

Regards,

SACHIN.SHEKAR

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 Table of content

Serial No Particulars Page Number

1. Declaration
Certificate
Acknowledgement

2. CHAPTER I
Introduction
Objective of the study
Literature Review
Research Methodology
Limitations of the study

3. CHAPTER II
Company Profile

4. CHAPTER III
Analysis and Interpretation of Data

5. CHAPTER IV
Findings, Conclusions, Learning
Experience and Suggestions

6. Annexure

7. Bibliography

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 List Of Table
Table Particulars Page
No. No.

1. What age profile do you belong to?

2. Do you use Mysore Sandal’s products?

3. What is your brand preference for soaps?

4. Do you prefer local brand?

5. Since when have you been using Mysore Sandal’s products?

6. How do you rate the quality of Mysore Sandal over the period of use? 5

7. What factors motivated you to buy Mysore Sandal’s products? 52

8. Which of these factors influence your buying behaviour of soaps? 53

9. How you find Mysore Sandal’s products’ price? 54

10. What you rate Mysore Sandal’s products for customers? 55

11. How would you rate Mysore Sandal’s Soaps for skin sensitivity? 56

12. Do you buy Mysore Sandal’s gift pack? 57

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 Chapter I

INTRODUCTION

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INTRODUCTION:

This report provides a detailed analysis about the company. The topic undertaken is “Study on
Accounting Taxation and Finance”. It describes about the financial strategies of KS&DL and
various steps that are required to increase their sales. This report provides as in-depth analysis of
KS&DL. Thereafter, the report analyses KS&DL financial Strategies and in the end suggestions
and recommendations are given based on the analysis.

Finance Strategy is an approach for the planned development of the Finance function based on a
clearly defined vision, strategy and roadmap. It helps to build on insights from business context,
stakeholder expectations and own performance & capabilities to focus on opportunities that
create value. A financial strategy is most effective when it is an integral component of corporate
strategy, defining how the organization will successfully engage customers, prospects, and
competitors in the market arena.

Concept of Accounting

Accounting is the measurement, processing, and communication of financial and non- financial
information about economic entities such as business and corporations. Accounting, also know
as the “language of business, measures and communicates the outcomes of an organization’s
economic activities to variety of stakeholders, including investors, creditors, management, and
regulators. Accountants are those who practise accounting. The terms "accounting" and
"financial reporting" are frequently used interchangeably.
Throughout history, accounting has taken various forms and levels of sophistication. The
modern double-entry accounting system was developed in mediaeval Europe, particularly in
Venice, and is credited to the Italian mathematician and Franciscan friar Luca Pacioli.
Accounting organisations such as standard-setters, accounting firms, and professional bodies
now make accounting easier. Accounting firms typically audit financial statements, which are
prepared in accordance with generally accepted accounting principles (GAAP). Various
standard-setting organisations, such as the Financial Accounting Standards Board (FASB) in the
United States and the Financial Reporting Council in the United Kingdom, establish GAAP. As
of 2012, "all major economies" planned to converge on or adopt International Financial
Reporting Standards (IFRS).

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Types of Accounting

• Managerial accounting
• Cost accounting
• Auditing
• Tax accounting
• Accounting information systems
• Forensic accounting
• Public accounting
• Financial accounting
• Governmental accounting

Managerial Accounting

This type of accounting documents, monitors, and aids in an organization's financial planning.
Their documentation is usually intended for internal stakeholders rather than the general public.
A managerial accountant must be cautious about who receives confidential information. They
collaborate with their managers to analyse and develop a budget to meet the organization's
short- and long-term objectives. Managerial accountants are interested in analysing past
performance in order to forecast future performance.

Objectives of Managerial Accounting

• Assistance in Planning and Formulation of Future Policies

• Helps in the Interpretation of Financial Information
• Helps in Controlling Performance
• Helps in the Solution of Strategic Business Problems
• Helps in Coordinating Operations Helps in Motivating Employees
• Communicating Up-to-date Information
• Helps in Evaluating the Efficiency and Effectiveness of Policies

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Cost Accounting
Cost accounting is a subcategory of managerial accounting, however, cost accountants activities
affect both financial and managerial accountants. Manufacturing cost accountants are in charge
of documenting, presenting, and reviewing manufacturing costs. They monitor all variable and
fixed costs to ensure that output matches the cost of producing a product. They also collaborate
with managers to make future decisions based on financial projections and production progress.

Objectives of Cost Accounting

• Calculate the cost per unit of the various products that a company manufactures.
• To accurately assess the costs of both the process and the operations.
• Disclosure of sources for material, time, expense, or equipment waste, as well as the
preparation of reports that may be required to control such waste.
• Provide necessary data and assist in determining the price of manufactured goods or
services rendered.
• Determine the profitability of each product and assist management in maximising these
profits.

Auditing
External auditing is the process by which a company sends financial documents to a third party
for financial analysis. In this case, a third party is a reliable source for determining whether a
company's financial statement complies with GAAP. A Certified Public Accountant performs
external auditing (CPA).

Objectives of Auditing

Primary objectives

To examine the accuracy of books of accounts.

To express the opinion of financial statements.

Secondary objectives

Detection and prevention of errors.

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Tax Accounting
When businesses file their tax returns each year, tax accountants assist them in remaining in
compliance with the Internal Revenue Code. They also help businesses plan for future tax
returns, such as avoiding certain tax burdens and comprehending the consequences of specific
tax decisions. Larger organisations will typically hire a tax accountant to help them navigate the
complexities of financial records.

Objectives of Tax Accounting

• Raise More Revenue

• Prevent Concentration of Wealth In A Few Hands
• Redistribute Wealth for Common Good
• Boost Up the Economy
• Reduce Unemployment

Accounting information systems

Accounting information systems are components of an organization's information system that
are used to process accounting data. [40] Many businesses make use of artificial intelligence-
based information systems. Al is used in the banking and finance industries to detect fraud. Al is
used in the retail industry to provide customer service. In the cybersecurity industry, Al is also
used. It entails the use of statistics and modelling in computer hardware and software systems.

Objectives of Accounting Information Systems

• It helps in the collection of data.

• Proper storage of data.
• Processing of data and to create a readable output of the data.
• It helps in the preparation of financial statements.

Forensic Accounting
Forensic accounting is used to investigate individuals' or businesses' financial records. When
some financial information is missing or unavailable for review, accountants may be required to
recreate it. The goal of forensic accounting is to collect all available documentation and account

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for all transactions in financial statements accurately and comprehensively. These professionals
are frequently involved in legal cases involving fraud, claims, and disputes.
Objectives of Forensic Accounting
The main objective of forensic accounting is to provide evidence that financial fraud has taken
place.

• Demonstrate that a company or individual has suffered financial loss.

• Identify the perpetrators of the aforementioned fraud.
• Establish the motives and methods used by the fraudsters.
• Prove the alleged perpetrators' involvement beyond a reasonable doubt.

Public accounting
Public accounting refers to businesses that offer accounting advice to clients based on their
specific requirements. They can work in auditing, help with tax returns, consult on procedures
for installing technology or computer programmes, and provide legal advice.

Objectives of Public Accounting

To ensure the authenticity of transactions and their compliance with existing laws, regulations,
and statutes.

• Providing proof of stewardship.

• Helping with planning and control.
• Contributing to objective and timely reporting.
• Providing a foundation for decision-making.

Financial Accounting
The process of compiling information for financial reports for external reporting is
central to financial accounting. Financial accountants collaborate with their colleagues
and managers to devise strategies for increasing a company’s profitability. They also
monitor all financial activity recorded in a ledger, as well as ensuring that internal
procedures are followed and that all financial activity appears on relevant financial
statements.

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 Objectives of Financial Accounting

• Systematic Recording of Financial Transactions.

• Revealing The Financial Position of The Firm.
• Ascertaining The Result of Business Operations.
• Reporting Past Performance and Future Prospect.

Governmental Accounting
Governmental accountants oversee the financial planning and resource allocation of
departments within a local, state, or federal government. This type of accounting must
adhere to standards established by the Governmental Accounting Standards Board
(GASB), which is in charge of developing consistent accounting procedures for local
and state governments. Federal employees will follow the Federal Accounting Standards
Advisory Board’s recommendations (FASAB). Governmental accountants will also
keep track of a government’s budget and allocate funds as needed.

Taxation

Meaning:
A tax is a mandatory fee or financial charge imposed by a government on an individual
or an organisation in order to raise funds for public works projects that provide the best
facilities and infrastructure. The collected funds are then used to fund various
government programmes.

Types of Tax

Direct tax
A direct tax is one that is paid directly to the entity that imposed it by a person or
organisation. Income tax, real property tax, personal property tax, and asset taxes are all
examples of taxes paid directly to the government by an individual taxpayer.

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 Advantages of Direct Tax

Encourages equality. Because direct taxes are based on a person’s ability to pay, they
promote equality among payers and citizens. It fosters certainty. The advantage of direct
taxes is that they are determined and finalised before they are paid.
• Promotes elasticity.
• Saves time and money.

Disadvantages of Direct Tax

• Pinching.
• Inconvenient.
• Evasion and Corruption.
• Uneconomical.
• Narrow based.

Salient features of Direct Tax

• All Direct Tax laws have a single point of contact.

• Legal prosecution is being digitised.
• Easy to Amend.
• No dividend distribution Tax.
• Simplified language.

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 Indirect Tax
An indirect tax is collected and paid to the government by one entity in the supply chain
(usually a producer or retailer), but it is passed on to the consumer as part of the
purchase price of a good or service. The tax is ultimately paid by the consumer, who
pays more for the product.

Advantages of Indirect Tax

• Everyone can contribute in indirect taxes.
• Indirect taxes are convenient.
• Indirect taxes cannot be evaded.
• Indirect taxes are spread over a wide range.
• Indirect Tax can be regressive.
• Indirect taxes raise price of commodities

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 •

Disadvantages of Indirect Tax

• Nature is regressive. Even after the implementation of the Goods and Services Tax, this
tax remains regressive to some extent.
• Nature is cumulative. Charging this tax can sometimes have a cumulative effect.
• Unfavourable for Industries.

Finance

Meaning of Finance
The process of raising funds or capital for any type of expenditure is referred to as
finance. It is the process of directing various funds in the form of credit, loans, or
invested capital to those economic entities that require them the most or can put them to
the best use.

Objectives of Finance
• Revenue Generation.
• Profit Margin.
• Managing Operational Activities.
• Productivity and Efficiency.
• Sustainability.
• Customer Satisfaction.
• Return on Capital Investment.
• Employee Benefits.
• Emergency/Contingency Plans.
• Leadership and Management.

Advantages of Finance

1. Rapid and convenient.

• Does not necessitate borrowing funds.
• There are no interest payments to be made.
• Simple access to funds.
• Can make room for more profitable uses.

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 •

Disadvantages of Finance

• There are opportunity costs involved.

• Is not appropriate for long-term investments.
• Working capital cannot be used to raise large sums of money.
• The company assumes complete risk.
Using working capital as a source of finance will have an impact on the company's
current ratio.

Importance of finance:-

 Ensure that there are adequate funds available to acquire the

resources needed to help the organization to achieve its objectives. Ø
Ensure costs are controlled.
 Ensure adequate cash flow
 Establish and control profitability levels. One of the major roles of
the finance department is to identify appropriate financial information
prior to communicating this information to managers and decision
makers in order that they may make informed judgments and decisions.
 Finance also prepares financial documents and final accounts for
managers to use and for reporting purposes (AGM etc…….)

Financial Management:-

Financial Management is primarily concerned with acquisition,

financing and management of assets of business concern in order to maximize the
wealth of the firm for its owners. The basic responsibility of the Finance Manager
is to acquire funds needed by the firm and investing those funds in profitable
ventures that will maximize firm’s wealth, as well as, yielding returns to the
business concern. The success or failure of any firm is mainly linked with the
quality of financial decisions. The focus of financial management is on efficient
and judicious use of resources to attain the desired objective of the firm. The basic
objectives of Financial management centers around a) the procurement of funds
from various sources like Equity share capital, preference share capital, debentures,
term loans, working capital finance and b) effective utilization of funds to
maximize the profitability of the firm and the wealth of its owners. The
responsibilities of the Finance managers are linked to the goals of ensuring
liquidity, profitability or both and are also related to the management of assets and
funds of any business enterprise.

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 •

The traditional view of financial management looks into the following functions
that a Finance manager of a business firm will perform:

a) Arrangement of short-term and long term funds from financial

institutions.
b) Mobilization of funds through financial instruments like equity
shares, preference shares, debentures, bonds etc
c) Orientation of finance functions with the accounting function and
compliance legal provisions relating to funds procurement, use and
distribution. With the increase in complexity of modern business situation,
the role of a Finance manager is not just confined to procurement of funds,
but his area of functioning is extended to judicious and efficient use of funds
available to the firm, keeping in view the objectives of the firm and
expectations of the providers of funds.

Introduction to working capital:-

“Cost estimation sometimes called as networking capital represented by the

excess of current assets over the current liabilities and identified the relatively
liquid position to total enterprise capital which constitutes a margin of buffer for
maturing obligation within the ordinary operating cycle of the business”-AICPA

Traditionally, working capital has been defined as the firm’s investment in

current assets. Working capital decisions are of tremendous importance of any
firm, as they affect the business’s liquidity position. Like long term investment
decisions, working capital decisions require an evaluation of the benefits and the
costs associated with each component of current assets. Like long term
investment decisions, cash flows play an important role in working capital
decisions as well. The primary difference between long-term decisions and
working capital decisions relates to the time horizon of the decision-making.
While long-term financial decisions have cash flow implications for a period that
may extend up to 20 years or even more, short term financial decisions i.e.,
working capital typically affect the cash flows of the firm for a shorter time frame
extending upto a maximum of one are year.
Working capital management is a significant in financial
management due to the fact that it plays a pivotal role in keeping the wheels of a
business enterprise running. Working capital management is concerned with short
term financial decisions. Shortage of funds for working capital has caused many
business fail and in many cases, has retarded their growth. Lack of efficient and
effective utilization of working capital leads to earn low rate of return working
capital i.e., for meeting the day to day requirements.

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 •

The requirements of working capital varies from firm to firm depending upon the nature of
business, production policy, market conditions, seasonality of operations, conditions of supply
etc., working capital of a company is like the blood to human body.

It is the most vital ingredient of a business. Working capital management is

carried out effectively, efficiently and consistently, will ensure the health of an
organization. A company invests its funds for long-term purposes and for short
term operations. That portion of a company’s capital, invested in short term or
current assets to carry on its day to day operations smoothly, is called the
‘working capital’.

Meaning of working capital:-

The concept of working capital is, perhaps, one of the most misunderstood the
literature of finance. The reasons it is subjected to multiple connotations. From the
Accountants perspective it refers to the current assets – current liabilities
differential: from the finance managers’ angle it implies the total investments made
in current assets: from the production managers’ view it refers to the total funds
that a firm needs to carry out its day-to-day operations. For definitional purpose,
this book adopts, for obvious reasons, the finance managers’ view of working
capital. For the sake of simplicity, we postpone issues of similarity or otherwise of
the three perspectives to later paragraphs.

Working capital refers to a firm’s investment in short term assets viz., cash,
short term securities, amounts receivables and inventories of raw materials, work-
in-progress and finished goods. It refers to all aspects of current assets and
current liabilities. The management of working capital is no less important than
the management of long term financial investment. Sufficient liquidity is
necessary and must be achieved and maintained to provide that fund’s to pat off
obligation as they arise or mature.

The efficient working capital management is necessary to maintain a balance of

liquidity and profitability. If the funds are tied-up in idle current asset represent
poor and inefficient working capital management which affects the firm’s
liquidity as well as profitability.

Working capital is defined as ‘the excess of current assets over current

liabilities’. All elements of working capital are quick moving in nature and
therefore, require constant monitoring for proper management. For proper
management of working capital, it is required that a proper assessment of its
requirement is made. Working capital is also known as circulating capital,
fluctuating capital and revolving capital. If the working capital level is not

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 •

properly maintained and managed, then it may result in unnecessary blockage of

scarce resources of the company. Therefore, the Finance managers should give
utmost care in management of working capital.

There are two important elements of working capital management:

1. Decisions on the amount of current assets to be held by a firm for efficient

operations of its business.

2. Decisions on financing working capital requirement.

Need of the study:

Cost estimation is essential for any organization, so analyzing the financial

progress of the company is of great importance to understand the growth of the
organization.

The need for the working capital in a business undertaking cannot be

overemphasized. The objectives of financial decision making to maximize
shareholders wealth. To achieve this, it is necessary to generate sufficient profits
the extents to which profits can be earned will naturally depend upon magnitude of
the sales among their things. A successful sales programmer is in over words,
necessary for earning profits by business enterprise. However sales do not convert
into cost instantly. There is invariability a time lag between the sales of goods and
the receipts of costs. There is, therefore a need for working capital in the form of
current assets to deal with the problem arising out the lack of immediate realization
of cost against goods solved. Sufficient working capital is thus, necessary to sustain
sales activities.

Objectives of working capital management:-

Objectives of the study:-

The basic objectives of the study are as follows:

 To understand the liquidity position ( financial and credit strength

) of KSDL v To understand solvency ( financial ) position of KSDL v To
evaluate inventory management at KSDL v To evaluate cash position of
the KSDL
 To find out whether KSDL is maintaining adequate Working
Capital by investing sufficient funds in Current Assets v To make
findings and to offer suggestions.

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 •

(a)By optimizing the investment in current assets and by reducing the level
of current liabilities, the company can reduce the locking-up of funds in working
capital thereby; it can improve the return on capital employed in the business.

(b)The second important objective of working capital management is that

the company should always be in a position to meet its current obligations which
should properly be supported by the current assets available with the firm. But
maintaining excess funds in working capital means locking of funds without
return.

(c)The firm should manage its current assets in such a way that the
marginal return on investment in these assets is not less than the cost of capital
employed to finance the current assets.

(d)The firm should maintain proper balance between current assets and
current liabilities to enable the firm to meet its day to day financial obligations.

Scope of study:

The study covers all the components of Working Capital.

 The study carried out at KS&DL Bangalore

 The study covers a period of three financial years ranging
from 2006-07 to 2008-09. This is so because ratios not practical
standards as they are several in numbers for each element of the
study.
Need for the Study:
This study is about the accounting taxation and finance of Karnataka Soap and
Detergent Limited.

• Objectives
I. To assist in the rise of resources for the state.
2.To keep a systematic record of financial transactions.
3.To evaluate the control of the assets and liabilities.

4. To know the financial position of the company.

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 •

• Scope of the study

The scope of a accounting taxation and finance broadly covers the following: To define
the business objectives precisely and establish the performance targets. To delineate the
responsibilities of each department as well as each personnel. To create a standard
benchmark for measuring performance.

• To define the business objectives precisely and establish the performance targets.
• To delineate the responsibilities of each department as well as each personnel.
• To create a standard benchmark for measuring performance.
• To identify the reasons for variation, if any, and take necessary corrective actions.
• To ensure optimal utilisation of the available resources to improve productivity as well
as profitability.
• To monitor and review the budgetary plans in case there is any such requirements due to
changing environment.
• To articulate long term policies with maximum accuracy.

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 Literature Review

A literature review is a text written by someone to consider the critical points of current
knowledge including substantive findings as well as theoretical and methodological
contributions to a particular topic. Literature reviews are secondary sources, and as such,
do not report any new or original experimental work. Also, a literature review can be
interpreted as a review of an abstract accomplishment.

Doron Nissim & Stephen.H. Penman: - He showed that financial statements has
traditionally been seen as part of fundamental required for equity valuation. He says that
standard profitability is in corporate and extended, and its complimented-on analysis of
growth, and operating activity analysis is distinguished from the analysis of financing
activities. Financial analysis is a pro form analysis of future with forecasted. According to
him the study on finance is a time involves finding relevant publications (such as books
and journal articles) critically analysing them and explaining what you found.

P Srinivasan – He done research of accounting in sugar industry. To evaluate and

analyse the performance he used accounting, and the data was collected from the
secondary sources. The research has includes analysing the balance sheet and profit and
loss account for a period of five years.

Prof. Vijay Patel, Prof. Chandresh B. Mehta (2012): - He states that analysing
profitability of the Jordanian phosphate mines company. He discussed about different
types of profitability and how to interpret them. And he also explained the types of
analysis like cross-selection analysis and time series are also explained.

Shackelford and Shevlin (2001):- In present a thorough and meticulous overview of

empirical tax research in accounting. Shackelford and Shevlin restrict their review to
studies that have been published in accounting journals and discuss how the Scholes and
Wolfson framework gave rise to the relatively recent archival, microeconomic-Based
income tax literature.

Mabwe Kumbirai and Robert Webb (2010) – It showed that overall ball performance
increased considerably in the first two years of the analysis. This resulted in falling
profitability, low liquidity, and deteriorating credit quality in the south African banking
sector.

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 S Sai Geetha – It states that accounting is helpful in a great manner to analyse the
financial position of the company, and it helps to analyse the profitability and financial
position of a concern. Accounting is calculated for a number of years which shows the
trend for the change of the position. She says to analyse the financial performance of
BHEL the accounting is used.

Habimana theogene (2017) - He says finance is important to the management owners,

customers, competitor, regulatory agency tax payers and lenders for evaluation and
making judgement about the financial health of the company allow to compare its
business against different standards using the figures on its financial statement. The
finance is the best tool to the effective decision making in an organisation.

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 Research Methodology

Definition Of Research Methodology

Research refers to any original and systematic investigation undertaken in order to increase
knowledge and to establish facts and principles. It is an organized and systematic activity and
may lead to new and improved insights, development of new products and processes. Thus,
research is an organized and systematic way of finding answers to questions or finding solutions
to problems. Research is said to be systematic because, it involves the following of definite set of
steps in order to arrive at some conclusion.

Types of Research

1. Descriptive
It includes surveys and fact finding enquires. Main aim is to describe the state of affair as it is
existing at present. The researchers have no control over variable. They can report what has
happened or what is happening. It is also known as Ex Post Facto.

Data Collection Sources

The collected data should be appropriate and adequate, hence to be collected by two methods i.e.
primary and secondary.

Primary data: -
Primary data refers to the “First-hand information” collected by an individual. It is collected for
the first time by the respondents. And also, it is original and more reliable data or information.

Secondary data: -
Secondary source of information was internet and various other articles in magazines, pamphlets
etc. These were some of the sources through which up-to-date and relevant data was collected. It
is one of the best methods to collect data because of economy in terms of time and money.
Secondary data was collected from text books, journal.

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Tools analysis
Observation and descriptive survey methods used to collect the data about the features,
expectations, satisfaction, problems etc. the customers.

Project Design

The tool used for data collection in this project is SECONDARY DATA:

The secondary data tools used in the project are books and internet. I refused to various articles
and data on internet. The founding's of other people were also used to achieve appropriate data.
The secondary data thus collected helped to get refined and reliable data. This Project report is
made on the basis of secondary data.

Sampling Design
Sampling procedure refers to the procedure by which the respondents should be chosen. In order
to obtain a representative sample, convenience- sampling method has been used in this study
without any stratification to obtain a uniform size of respondents.

Selection of Sample
Sample can ideally be selected as percentage of total population of respondents to increase the
accuracy and reliability of the sample. Hence, a sample size of 50 respondents was appropriate to
keep sample accurate as well as manageable.

Sampling Unit

The unit refers to the definitions of the particular person who is to be survey. In this study the
unit is the respondents, which are operating in.

Sampling Size

The present study was conducted on a sample size of 50.

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 LIMITATIONS

The following limitations are faced by the researcher during the study.

• Since sample size is only 50, which is not the true representative of the study.
• Level of accuracy of the results of research is restricted to the accuracy level with which
the customers has given their answers and the accuracy level cannot be predicted.
• Time constraint is also there.

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 Chapter-2

PROFILE OF THE ORGANIZATION

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History:

India is a rich land of forest; ivory, silk, sandal; precious gems are magical charms of centuries.
The most enchanting perfumes of the world got their exotic spell with a twist of sandal. The
world's richest sandalwood resource is from one isolated stretch of forests land in South India
that is Karnataka.
The origin of sandalwood and its oil in Karnataka, which is used in making of Mysore sandal
soaps, is well known as Fragrant Ambassador of India & Sandalwood oil is in fact known as
"Liquid Gold".
By the Inspiration of His Highness Maharaja of Mysore late Jayachamarajendra Wodeyar, the
trading of sandalwood logs started which was exported to Europe and New destinations, but with
commencement of First world War India faced Severe Crisis on the business of sandalwood.
This situation gave rise to start of an industry, which produces value added products i.e., of
Sandalwood oil. His Highness Maharaja of Mysore created this situation as an opportunity by
sowing the seed of the Government Sandalwood Oil Factory, which is the present KS&DL. The
project was shaped with the engineering skills and expertise of the top level. Late Sir M.
Visvesvaraya, the great Engineer who was the man behind the project.
Today's famous Mysore sandal soaps credit goes to late Sri Sosale Garalapuri Shastri who
incorporated the process of soap making using Sandalwood oil. He was an eminent scientist in
the field working at the Tata Institute, Bangalore. He was sent to England to master the fine
aspects of soap manufacturing.
The Maharaja of Mysore & Diwan Sir. M. Visvesvaraya established the Government Soap
factory during the year 1918. The factory was started as a very small unit near K.R.Circle,
Bangalore with the capacity of 100 tons P.A. In November 1918 the Mysore sandal soap was put
into the market after sincere effort and experiments were undertaken to evolve a soap perfume
blend using sandalwood oil as the main base to manufacture toilet soap. The factory shifted its
operation to Rajajinagar industrial area, Bangalore in July 1957, where the present plant is
located. The plant occupies an area of 39 acres (covering Soaps, Detergents and Fatty Acid
divisions), on the Bangalore Pune Highway, easily accessible by transport services and
communication. Another sandal wood oil division was established during the year 1944 at
Shimoga, which stopped its operations in the year 2000 for want of Natural Sandalwood.
This factory started at a moderate scale in year 1916. The first product was washing soap in
addition to the toilet soap in the year 1918. The toilet soap of the company was made up of
sandal wood oil.

In 1950 Government decided to expand the factory in two stages. The first stage of expansion
was done to increase the output to 700 tons per year and was completed in the year 1952 in the
old premises.

28 | Pa g e
The next stage of expansion was implemented in 1954 to meet growing demand for Mysore
sandal soap and for this purpose Government of India sanctioned license to manufacture 1500
tons of Soaps and 75 tons of glycerine per year. The expansion project worth of Rs.21 lakhs
includes the shifting of the factory to a newly laid industrial suburban of Bangalore.
The factory started functioning in this new premise [i.e., present one] from 1 July 1957. From
this year onwards till date the factory had never looked back, it has achieved growth and
development in production scales and profits.
The industry has 2 more divisions one at Shimoga and another at Mysore where sandal wood oil
is extracted. The Mysore division started functioning from 1917 and only during 1984
manufacturing of perfumed and premiere quality Agarbathies at was started. Right from the first
log of sandalwood that rolled into the boiler room in 1916, the company has been single minded
pursuit of excellence. The project took shape with the engineering skills and expertise of toplevel
team under the leadership of Sir. M. Visvesvaraya, Prof. Watson and Dr.Sudbrough. Like this
soap factory was started as a small unit and now it has grown up to a giant size.

Renaming:

The Government Soap Factory was renamed "Karnataka Soaps and Detergent Limited" on
October 1, 1980. The organisation was registered as a public restricted organisation. With an
approved offer capital of Rs 35.00 crore versus a bought-in share capital of Rs 31.82 crore. The
company manufactures a variety of items in the latrine cleansers, cleanser, Agarbathies, and
Cosmetics categories. Mysore shoe cleanser, which accounts for 75% of the organization's boat
brand, has successfully presented Mysore shoe thousand years, centennial, Mysore shoe rose
shower tablet 150gms. Later on, they wished to present various products in the business sectors,
such as zip lock pocket Agarbathies, Mysore shoe youth cleanser, wellbeing cleansers all in
premium class, and voyages pack for the vacationer and travel industry.
During the fiscal year 2019-2020, the board set a target of Rs 725er in net sales, against which
the organisation made consistent progress and reached Rs 326.00cr on August 31, 2019.
Furthermore, at the 246th executive meeting, the organisation announced a profit of Rs 6,36cr in
2017-18 and a profit of Rs 15,91er in 2018-2019. It expanded to 22.28cr in 2021, indicating that
the organisation is in a good place for business.

29 | Pa g e
 TRADEMARK OF KS & DL: - The "SHARABHA"

The carving on the cover is the SHARABHA, KS & DL's trademark.

Image of KS& DL to represent the organization's way of thinking. In this way, the SHARABHA
represented a power that removes blemishes and pollutions. The maharaja of Mysore adopted it
as his authority symbol. Furthermore, Karnataka Soaps and Detergent Limited quickly assumed
its pride of position as the image of the Government Soap Factory of value that mirrors a
standard of greatness. The KS&DL token represents the organization's way of thinking.

KS&DL has the following departments: -

1. Finance and Accounts.

2. Human Resources Development & Administration.
3. Research and Development.
4. Quality Assurance.
5. Materials & Stores.
6. Production & Maintenance.
7. Marketing & Business Group.
8. Projects & Management Information Services.

30 | Pa g e
Structure of Organization basis of Departmentation:

KS&DL is a manufacturing concern of moderately large size. We can see here function wise
departmentation. It facilitates utilization of man power and it is a simple, economical and
reasonable organization pattern.

Level Of Organization

The organization of KS&DL consists of 4 levels

1. Top level consisting of BOD's and MD.

2. Second level consisting of Directors of Finance & Special officers.
3. Third level consisting of senior managers, deputy managers and officers.
4. Fourth level consisting of clerks, Assistants and Attenders.

Trainings Provided by the KS&DL: -

1. Innovation and Creativity in Management.

2. Contract Management Programme.
3. Purchase and Inventory Management.
4. Management Development Programmes.
5. Finance and Accounting.
6. Theme Based Costing.
7. Elements of Costing for non-finance People.
8. Managerial Competencies through Soft skills.
9. Personality Development for Officers of PSEs.
10. Energy Audit and Conservation in Electrical Energy System.

Objectives Of KS&DL: -

• To serve the national economy

• To attain self-reliance
• To promote and uphold its image as symbol of traditional products
• To promote purity and quality products and thus enhance age old-charm of
Sandalwood oil.
• To build upon the reputation of Mysore Sandal soap based on pure sandal oil.

31 | Pa g e
 • To maintain the brand loyalty of its customer.
• To supply the products mentioned above at most reasonable and competitive rate.

Milestones Of KS&DL

• 1916-Mysore sandalwood oil factory started at Mysore.

• 1918-Govt soap factory was started by Maharaja of Mysore with capacity of 12mts
per annum near Cubbon Park, Bangalore and the soap introduced to market.
• 1932-Toilet soap production capacity was enhanced to 750MTs/Annual.
• 1944-Second sandalwood oil extraction plant was started in Shimoga.
• 1954-sir M. Visveswaraya sets up new manufacturing in Rajajinagar.
• Bangalore 1965-Starts to export the products.
• 1967-Celebrates golden jubilee.
• 1974- Mysore sales international limited was appointed as a sole selling agent for
marketing its product.
• 1975 Synthetic detergent plant for manufacture of detergent cake powder was
installed with Italian technology.
• 1980- Converted into public sector Govt soap factory was renamed as a Karnataka
soaps and detergents limited.
• 1987-Company take over the marketing activities from Ms. Mail and established its
own marketing network by opening six Branches all over India.
• 1999- BSI certified by ISO 9001 for effective implementation of quality management.
• 2000-Company certified by BSI with ISO 14001 to maintain the effective
environment systems.
• 2003-The company wiped out a total carry over loss of 98cr and exited Board for
Industries and Financial Reconstruction BIFR, making the only state of public sector
unit to make the continuous profit.
• 2008-Company introduced Hand wash liquids under trade name of Herbal hand wash,
rose hand wash, strawberry hand wash and mango hand wash. Liquid detergent under
trade name of KLEENOL with different variants for floor wash, dish wash etc.
• 2009-Mysore sandal talcum powder and Mysore sandal baby powder are
manufactured and reintroduced.
• 2010-ISO certification updated to 9001: and, Launched the Mysore sandal dhoop.
• 2015- Rs 6cr dividend paid to Govt of Karnataka. The launch of point advance liquid
detergent, kleeno liquid detergent etc.
• 2016-Company reached highest gross sales turnover of Rs476.00cr with the profit of
Rs60cr.2016-KS&DL completed 100 years.

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 • 2018- Achieved highest turnover 583cr.
• 2019- Achieved highest turnover 672cr.

Vision

• Keeping pace with globalization, global trends and the state's policy for using technology
in every aspect of governance.
• Making available technology product and services at the most affordable price to the
people at large, in keeping with the policy of a welfare state.
• Making all out efforts to achieve reasonable profits.
• Most importantly to earn the invaluable foreign exchange, both to the state and to the
country.

Mission

• To serve the national economy.

• To attain self-reliance
• To promote purity & quality products.
• To maintain the brand loyalty of its customers.
• To build the reputation of Mysore sandal soap based on pure sandal oil.

Quality Policy

AN ISO-9002 COMPANY: -

KS & DL with a tradition of excellence of over eight decades is committed to customer delight,
through total quality management and continuous improvement through the involvement of all
employees. KS&DL has got ISO 9002 certificate.
To improve the quality management system and to facilitate TQM in the process of soap and
detergent, the management took decision to obtain ISO-9002 by end of March 1999.
Accordingly, action plan was drawn and a committee was set up for the purpose during October
1998 with a mission statement.
The company gives initial training including conducting employee's awareness programme,
document quality manual and quality system procurement.

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In this direction company obtained the guidance from Consultancies, Bangalore and Bureau of
Indian Standards, Bangalore. Accordingly, company standards registered for ISO 9002 by the
end of March to the Bureau of Indian Standards. Obtained the certificate by the end of March
1999 itself.
This is to project in the national and international market and also to improve quality of products
offered to the consumers with the assurance of quality in the message. The Company got itself
upgraded to ISO-9001-2004, Quality Systems in the year 2004-05.

ISO-14001: -

The company is located in the heart of the Bangalore city. The management of the company took
a decision to get the ISO- 14001 and become model to other public sector for the techniques used
and also to other Government units to spread the message of maintenance of environment.
ISO-14001 and ISO-9001 will facilitate to improve the corporate brands in the global market and
it will help the company to improve the profits, year after year on long-term basis. The
environment management system adopted in the company through this motive as follows:

• Conservation of energy.
• Conservation of Surrounding.
• Conservation of resources.

Equipped with latest technology and backed by full-fledged quality control and R&D support,
KS&DL is marching confidentially ahead in the new millennium. The Company is developing
new products to meet the changing preferences of its customers.

Present Status:

1. The company has entered into shampoo, dish wash, detergent bar & room
refresher.
2. The company is striving to develop new perfumes for soaps detergents,
Agarbathies & shampoo.
3. The company wants to improve the existing products in terms of quality.

Infrastructural facilities:

1. Canteen facility
2. Library

34 | Pa g e
 3. Car stand
4. Waiting room

Ownership Pattern:

“Wholly owned by Government of Karnataka”

Competitors market Share:

• HUL-70%
• Godrej-4%
• Procter & Gamble-10%
• KSDL-11%
• Others-5%

WORK FLOW MODEL

SILOS (Silos are closed chambers)

SILOS (Silos are

closed chamber)

Soaps
Noodles

After the stamping machine, it goes to Wrapping machine led through the conveyor belt.

35 | Pa g e
 KS&DL at Glance:
Incorporated Name Karnataka Soaps and Detergents Limited
(KS&DL)
Type Public sector company
Founded 10th May,1916
Renamed 1980
Founders Maharaja Krishna Raja Wadiyar IV, Sir M
Visvesvaraya
Owner Government of Karnataka
Website www.mysoresandal.com
Trademark SHARABHA
Headquarter Bangalore, Karnataka, India
Plant Bangalore
Shimoga
Mysore
Products Soaps
Cosmetics
Baby Products
Perfumes
Air freshener
Detergent cake
Agarbathies
Talcum Powder
Capacity of the Unit Licensed capacity is 26,000 metric tons
of soaps and 10,000m tons of Detergents
per annum
Location Karnataka Soaps and Detergents Limited,
Bangalore Pune Highway, Rajajinagar,
Bangalore -560055
E-mail Mysoresandal.com

36 | Pa g e
 Promoters

The promoters of Karnataka Soaps & Detergents Limited are the Honourable Government of
Karnataka and its Nominees.

Table showing Directors and key managerial personnel of KS&DL

Sl No Name Designation

1. Sri. Appaji C S Nadagouda Chairman

2. Dr.Prashanth P.K.M Managing Director, Karnataka

Soaps and Detergents Limited,
Bangalore
3. Sri.Manoj Kumar Managing Director, Mysore Sales
& International Ltd, Bangalore,
Director
4. Sri.Nitish K, IAS Deputy secretary, Finance
Department (Budget & Resources)
5. Sri.Shivakumar Nanjegowda Deputy secretary Government
Commerce & Industries
Department (Services &
Coordination)

Slogan of KS&DL

• “NATURAL PRODUCT WITH EXOTIC FRAGRANCE”

37 | Pa g e
 Swot Analysis

• Strengths
1. The company has modern manufacturing facility with maximum
capacity, brand loyalty. Of consumers and has 90% of sandal soap
market, foreign technology to suit indigenous condition due to
government participation, little financial crisis with backup from
government.
2. A very good dealership network, which ensures that the products reach
every loop and comer.
3. A very little competition for its major products sandal soap.
4. An ISO 9002 certified company has its own brand image.
5. Abundant availability of raw materials.
6. Two sandalwood oil factories in Shimoga and Mysore, which produce
75% of world’s sandalwood oil.

• Weakness:
1. Defective marketing strategy lacks effective advertising and publicity.
2. Needs updating with times in terms of plant and machinery.
3. The large proportion of the target area is upper middle class and
upperclass people, it has very few offers to lower middle class.
4. Unskilled labour coupled with excess labour hampers profitability.
5. Product lies under utilized.

38 | Pa g e
 • Opportunities
1. The toilet soap and the detergents market is an over
expanding industry and a major company likes KS& DL
with its manufacturing expertise can call the shots if it
reaches peak manufacturing capacity.
2. Existence of vast market and huge demand
3. Traditional benefits that sandal is good for skin.
4. Government support large production capacity
5. Good export market can tap foreign market

• Threats
1. Competition from other global leaders like HUL.
2. Government interference may reduce growth potential.
3. As the company depends on forests for its main raw materials
makes the company to find chemical alternative to sandalwood.
4. To protect the financial interest of the company.

Product Profile:
KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of
excellence for over eight decades, using only the best East Indian grade Sandalwood
oil & Sandalwood soaps in the world. The products produced at KS&DL are the
Soaps, Detergents, Agarbathies and Sandalwood oil.

39 | Pa g e
 1. Soaps:
Mysore Sandal Soap (75gm, 125gm & 150gm)
Mysore Sandal premium Soap (75gm)
Mysore Sandal Gold Soap (75gm & 125gm)
Mysore Sandal Baby Soap (75gm)
Mysore Special Sandal Soap (75gm)
Mysore Rose Soap (100gm)
Mysore Sandal Herbal Care Soap (100gm, 125gm)
Mysore Jasmine Soap (100gm)

2. Detergents:
Points Advanced Liquid detergent (1ltr, 5ltr)
Mysore Detergent powder (1kg)
Mysore Detergent powder (500gm)
MDC Detergent Cake (125gm)
KLEENOL Liquid detergent (500ml &1ltr)

3. Incense Sticks:
Mystic incense Stick.
Sandalwood incense Stick.
Jasmine incense Stick.
Mysore sandal Dhoop.
Jasmine Dhoop.

4. Cosmetics:
Mysore sandal face pack.
Mysore sandalwood oil.
Mysore sandal coconut oil.
Mysore sandal baby powder.
Baby massage oil.
Baby shampoo.
Mysore sandal massage oil.
Mysore sandal talcum powder.

40 | Pa g e
 5. Handwash (250ml,1ltr):
Strawberry hand wash
Mango hand wash
Rose hand wash
Pineapple hand wash
Herbal hand wash

6. Household products: Divya Pooja kit.

FRESHNOL floor cleaner. Air
freshener.
Mysore sandal body wash.

Price:
Mysore Sandal offers its products at competitive prices in order to penetrate the huge
unorganized market of soaps and agar Bhatti (Incense Sticks).

• The company pricing strategy has taken into consideration the price
conscious nature of consumers in India. Mysore Sandal has launched soaps in
small packets of small quantities, priced as low as Rs. 10. The company also
launched soaps and Agarbathies in 5 to 7 different packs with price varying
according to the weight of the products.
• The price also varies on the basis of the type of soap and the raw materials
used to manufacture it. The cost of premium packing also has impact on the
price, especially in the case of gift packs.
• The company revises the prices of its products upward only when there is
increase in the raw material costs or if additional taxes are imposed.

Areas of Operation:

GLOBAL FAVOURITES FOR THEIR NATURAL GOODNESS.

41 | Pa g e
KS&DL has a long tradition of maintaining the highest quality standards, right from the selection
of raw materials to processing and packaging of the end product. The reason why its products are
much in demand globally & are exported regularly to UAE, Bahrain, /Saudi Arabia, Kuwait,
Qatar, South East Asian countries as well as North America & South America. The sandalwood
oil, of course, is much sought after by the leading perfume houses of the world. All the toilet
soaps of KS&DL are made from oils & fats of vegetable origin & totally free from animal fat.
Countries KS&DL Operate
Australia Sri Lanka Czechoslovakia Bahrain
Durand West France Kenya Taiwan
Italy UAE South Africa Holland
Singapore Malaysia Panama Germany
Canada Saudi Arabia USA Qatar
Nepal Mauritius Japan UK

Future growth and prospectus:

• Introduction of anti-bacteria, herbal transparent soap, made out of 33

essential oil-based perfume, Aloe Vera, Vitamin-E etc, as additive and
suitable for all types of skin and all seasons.
• Improvement in existing products Mysore Sandal classic improved
moisturizers &Skin conditions.
• Introduction of sandalwood powder in 50gms, 100gms to meet the growing
demand for religious purpose.
• Introduction of new higher powered detergent powder for institutional sales
in bulk packaging.
• To attain market leadership.
• Introduction of new trade schemes to increase sales.
• Aggressive advertisement and publicity as part of sales promotion.
• Timely introduction and implementation of market driven decisions.
• Ensuring effective internal control.
• Enter a new multi-national skin soap business

42 | Pa g e
 ANNUAL ACCOUNTS FOR THE YEAR ENDED

31-03-2023

43 | Pa g e
 BALANCE SHEET AS AT MARCH 31, 2023.

(All amounts are in Crores of INR)

Sl Particulars Note As at 31 As at 31
No. March March
2023 2022
I. Assets
1 Non-Current Assets
Property, Plant and Equipment 1,277.73 1,280.44
Capital Work-In-Progress 0.27 -
Financial Assets
i. Deposits 0.02 0.02

1,278.01 1,280.45
Total Non-Current Assets
2
Current Assets
Inventories 140.71 125.72
Financial Assets
i) Trade Receivables ii) Cash 25.5 20.15
and Cash Equivalents 90.63 99.26
iii) Bank balances other than cash and cash 850.09 650.19
equivalents 54.08 25.72
iv) Other Financial Assets
1,161.45 921.03
Total Current Assets
2,439.46 2,201.48
II. Total Assets
A
Equity and Liabilities
31.82 31.82
Equity
1,912.54 1,771.41
Equity Share Capital
Other Equity 1,944.36 1,803.24
B
1 Total Equity

Liabilities 129.73 158.77

44 | Pa g e
 Non-Current Liabilities 8.57 10.27
Deferred Tax Liabilities
Provisions

Total Non-Current Liabilities 138.30 169.04

2 Current Liabilities
Financial Liabilities
i) Trade Payables
a) Total outstanding dues of
Micro Enterprises & Small
Enterprises
6.84 28.29
b) Total outstanding dues of creditors
other than Micro
Enterprises & Small
Enterprises
ii) Other Current Financials 101.32 53.11
Liabilities iii) Other
131.81 96.60
Current Liabilities iv)
116.3 51.20
Provisions

356.80 229.20
Total Current Liabilities
2,439.46 2,201.48
Total Equity and Liabilities

The accompany Significant Accounting Policies and

Notes are an integral part of Financial Statements.
Significant Accounting Policies
Notes to Financial Statements

45 | Pa g e
 STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2023

(All Amounts are in Crores of INR)

Sl No. Particulars Note As at 31 As at 31
March March
2023 2022
Income
I. Revenue From Operations 1,127.19 929.62
II. Other Income 51.45 26.83

III. 1,178.64 956.45

Total Income (I + II)

Expenses:
a 642.31 516.30
Cost of Material Consumed
b 8.19 3.54
Purchase of Stock in Trade 15.81
c -6.19
Changes in Inventories of Finished Goods,
Stockin-Trade and Work-in-Progress 68.92
d 71.66
Employee Benefits Expenses 2.49
e 2.74
f Depreciation and Amortization Expenses 180.73 107.93
Other Expenses
899.45 715.00
IV.
Total Expenses 279.19 241.45
V.
Profit Before Tax
VI. 122.07 84.50
Tax Expenses: -29.96 -1.56
(i) Current Tax 6.31 20.31
(ii) Deferred Tax (iii) Previous
Year Tax 98.42 103.25
180.77 138.20

46 | Pa g e
VII.
Net Profit After Tax (V-VI)
VIII.
A. Other Comprehensive Income
(i) Items that will nit be reclassified to
profit or loss
(ii) Income tax relating to items that will
not be reclassified
Items that will not be reclassified to
profit or loss in subsequent periods
(iii) Net(loss)/gain on Fair Market
Valuation of Assets
VIII. (iv) Actuarial Gains/(Losses) on Defined 2.65 -0.50
Benefit Plans
Less: Income tax effect on above -0.93 0.18
IX. Other Comprehensive Income 1.72 -0.33
X.

Total Comprehensive Income for the period 182.49 137.88

(VII+VIII)
(Comprising Profit (Loss) and Other
Comprehensive Income for the period)

Earnings per equity share: 4,342.90

5,680.75
Basic & Diluted (in Rs.) 1,000.00
1,000.00
Face Value per Share (in Rs.)

Significant Accounting Policies Notes

on Financial Statements

47 | Pa g e
 Cash Flow Statement for the year ended 31st March, 2023

(All Amounts are in Crores of INR)

Particulars For the year For the year
ended 31-03- ended 31-03-
2023 2022
• Cash Flow from Operating Activities:
Net Profit before tax as per Statement of Profit and Loss 279.19 241.45
Add/(Less):
Depreciation, Amortization and Impairment 2.74 2.49
Depreciation, Amortization and Impairment on Disposal / -11.48 -0.93
Written Back
Tax Paid -128.38 -104.63
Interest and Dividend Income & Other Non-Operating Income -51.45 -26.83 -0.50
OCI- Actuarial Gains Rounding 2.65 -
Off -

Operating Profit before Working Capital Changes 93.27 111.06

-
Adjustment for movements in:
-5.80 -0.02
Non-Current Deposit
-14.99 -1.22
Trade Receivables
-28.36 32.66
Inventories
-21.44 19.39 5.36
Other Financial Assets
48.21 35.21 14.82 -
Trade Payables
65.62 11.98
Other Financials Liabilities
48.48
Other Current Liabilities
171.71 218.56
Current Provisions
Net Cash from Operating Activities
-0.91 -4.62
• Cash Flow from Investing Activities: Purchase of 12.10 1.02
Property, Plant and Equipment 51.45 26.83
Sale of Property, Plant & Equipment 62.64 23.23
Interest and Dividend Income & Other Non-Operating Income
Net Cash from Investing Activities
-1.71 1.67
• Cash Flow from Financing Activities -41.36 -22.80
Increase/(Decrease) in Long Term Liabilities -43.07 -21.13
Dividend & Dividend Tax Paid

48 | Pa g e
 Net Cash from Financing Activities 191.28 220.66

749.45 528.79
Net (Decrease) in Cash and Cash Equivalents (A+B+ C)

Opening Balance of Cash and Cash Equivalents

Closing Balance of Cash and Cash Equivalents

940.71 749.45

Components of Cash and Cash Equivalents:

Balances with Bank not carrying interest – Bank Balances in Cash and 90.62 99.25
Cash Equivalents
Balances with Bank carrying interest – Other Bank Balances Cash 850.09 650.19
in Hand – Cash Balances in Cash and Cash Equivalents 0.01 0.01

Total of Cash, Cash Equivalents & Other Bank Balance 940.71 749.45

NOTES:

1. The above Cash Flow Statement has been prepared under Indirect method as set
out in Ind AS-7 under section 133 of the companies act, 2013

49 | Pa g e
 Chapter III

DATA ANALYSIS

AND

INTERPRETATION

50 | Pa g e
 1. What age profile do you belong to?

TABLE 1.
Age Group No. of Respondents

20-30 28

31-40 9

41-50 10

Above 50 3

INTERPRETATION

From the above table 56% respondents are belonging to the age category of 20-30yrs.
18% respondents are belonging to the age category of 31-40yrs. 20% respondents are belonging
to the age category of 41-50yrs. 6% respondents are belonging to the age category of above 50.

51 | Pa g e
 2. Do you use Mysore Sandal’s products?

TABLE 2.

Use Mysore Sandal products No. of Respondents

Yes 46

No 4

INTERPRETATION

From the above table it is clear that most of the customers (around 92%) of Bangalore has used
the products of Mysore Sandal Factory. The rest 8% have not used the product of Mysore Sandal.
46 of the 50 answered in positive, which translates into almost 92% of the sample size. This
establishes the superiority and awareness of the product among the people.

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 3. What is your brand preference for soaps?

TABLE 3.
Which Brand You Prefer No. of Respondents

Mysore Sandal 12

Himalaya 15

Margo 6

Lifebuoy 8

Dettol 6

Other 3

INTERPRETATION

From the above table it is cleared that there are many good competitors of Mysore Sandal Soaps
still surviving amongst all on the top is the Himalaya. As we can clearly see the most Brand
Preference is given to Himalaya amongst all of its competitors.

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 4. Do you prefer local brand?

TABLE 4.
Prefer local brand No. of Respondents

Yes 32

No 18

INTERPRETATION

Another point that came across was that when questioned about the usage of other
brands, the closest competition for Mysore Sandal’s products came from Himalaya and
Margo. Also, only 36% preferred local brand when compared to branded products which
shows that the branded soaps segment is cutting into the unbranded segment.

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 5. Since when have you been using Mysore Sandal’s products?

TABLE 5.
Using Mysore Sandal No. of Respondents
since
Less than 6 months 6

6 months-1yr 14

1yr-3yr 19

More than 3yr 11

INTERPRETATION

22% of the respondents have been using Mysore Sandal’s soaps for over 3
years while 38% have been consuming it for between 1-3 years. With the
arrival of so many competitors on the scene, even a period of year is long
enough to prove brand loyalty which is established very firmly in this case.
Thus, the chances of the substitutability of the Mysore Sandal soaps by any
other brand seem to be rather low as there has been no switching of brands by
any of these respondents. Those who have tried it have maintained their
loyalty towards it.

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6. How do you rate the quality of Mysore Sandal over the period of use?

TABLE 6.
Comparison of quality over the No. of Respondents
period of use
Significantly Better 23

Better 16

Neutral 11

Worse 0

Significantly Worse 0

INTERPRETATION

None of the respondents subscribed to the view that the quality of Mysore Sandal’s soaps has got
worse. They were either neutral or found it to be better/significantly better than before. This
might be one of the reasons for the strong brand loyalty.

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 7. What factors motivated you to buy Mysore Sandal’s products?

TABLE 7.
The Influencer No. of Respondents

Self 20

Ads 8

Family 11

Relatives 6

Neighbour 0

Friends 5

INTERPRETATION

On the basis of the chart above, it is evident that when it comes to buying soaps people tend not
to get influenced by others. They rely on their own sense of judgment to buy soaps. However, in
some case the family tend to influence the buying pattern of the buyers. Hence, in this case there
seems to be a vacuum when it comes to the role of the “Influencers”, because of this the
respondents himself also usually plays the role of the “Deciders”.

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 8. Which of these factors influence your buying behaviour of soaps?

TABLE 8.
Factors No. of Respondents

Price 6

Brand Name 13

Quality 19

Fragrance 9

Packaging 3

INTERPRETATION

Consumers gave the highest priority to the quality of the soap as compared to the other factors.
Brand name in a close second on their priority list. What came, as surprise was that only few of
the respondents considered packaging as part of their selection criteria, on which Mysore Sandal
usually lays so much importance.

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 9. How you find Mysore Sandal’s products’ price?

TABLE 9.
Price No. of Respondents

Very Low 0

Low 0

Reasonable 43

High 3

Very High 4

INTERPRETATION

With respect to Mysore Sandal’s, it was found that 86% of the respondents considered the price
is reasonable. However, 8% also considered it to be high. This confusion is however solved
when viewed in the light of the following graph that analyses the rating of various factors.

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 10. What you rate Mysore Sandal’s products for customers?

TABLE 10.
Factors Rating

Packaging 89

Variety 90

Price 75

Quality 95

Hygiene 96

Fragrance 95

INTERPRETATION

In the above chart, the respondents were asked to rate the factors based on a 5-point scale, 5
being highest. The total score for each factor has been computed by multiplying the rating with
the corresponding number of respondents. Here again the same trend of hygiene and fragrance
being given the highest priority is reiterated. The confusion relating to the price factor is solved
as ‘Price’ gets the least priority among the people surveyed. Heance, people don’t mind paying
for Mysore Sandal’s soaps as long as they get a good fragrance and quality product as value for
their money. Once again packaging, which is one of the top priorities of Mysore Sandal’s, fails to
get the top priority among the consumers and finishes fifth on the priority list. This can be
correlated to Herzberg’s two-factor theory. The absence of good packaging may lead to
dissatisfaction among the consumers but the presence of it does not seem to create any particular
satisfaction among the consumer.

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 11. How would you rate Mysore Sandal’s Soaps for skin sensitivity?

TABLE 11.
Skin Sensitivity No. of Respondents

Oily 18

Dry 15

Normal/Combination 17

INTERPRETATION

When it comes to skin sensitivity value of Mysore Sandal’ soaps, 36% of the respondents felt
that the soaps help to remove oil from face and body. 30% of respondents felt that the soaps
work better for dry skin sensitivity. And 44% of respondents thinks that the Mysore Sandal soaps
work and help in remove oil and also it is good for dry skin sensitivity.

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 12. Do you buy Mysore Sandal’s gift pack?

TABLE 12.
Gift Pack No. of Respondents

Yes 26

No 24

INTERPRETATION

Mysore Sandal Factory’s attaches a lot of value to its gift packages offered during the festival
season. However, 48% of the respondents didn’t buy such packages. This shows that the gift
packages being offered don’t play such an important role on the buying behaviour of the
customers.

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 CHAPTER IV

Findings,

Learning Experience,

Suggestions And

Conclusions.

Findings:
The survey also sought to know as to what the consumers expect in the future from Mysore
Sandal Factory and otherwise. Many creative ideas came out. With regard to soaps, people are
looking forward to different types, much more variety in the soaps, cosmetic products,
household’s product, detergents etc. Many of the respondents are seeking more fragrance soaps
and Agarbathies from Mysore Sandal Soap Factory and there is also a demand for many more
varieties in beauty soaps. The minimal design levels do not seem to be affecting the buying
trends of the consumers right now, but as people are becoming more and more conscious, in the
future consumers might be looking forward to varieties. Apart from the soap segment, the
consumers in general are looking forward to products like face wash, body wash.

Learning Experience: learning experience gained by me during the in-plant training was very
much practical oriented. Mostly all the concepts and theories, which I studied in the class, are
applicable practically.

The overall study of the organization reveals that the company has grown tremendously since its
incorporation from 1918, now it has independent units for manufacturing sandalwood oils, toilet
soaps, washing soaps, detergents, cosmetics, incense sticks and industrial products. The initially
named Government Soap Factory was renamed as Karnataka Soaps and Detergents Ltd in 1st
October 1980.
Its trademark is "Sharabha", the slogan stands as "Natural products with exotic fragrance". The
company is a leading sandalwood soap Manufacturer in the country. Even though they have
demand for their products in both domestic as well as international market, They are not able to
establish themselves as market leaders due to various reasons such as extensive work force,
nonutilization of installed capacities of manufacturing, lack of proper distribution network, lack

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of expenditure in the areas of advertisements and publicity, competitions of various soaps and
detergents and lack of timely decisions.
The company has an effective human resources department where in the employees are given
excellent packages, incentives and extensive care is taken by providing facilities such as canteen,
medical facilities, motivation classes and extracurricular activities. I had a great time working on
the project, as it gives insights into the working environment of an organization. The training has
exposed me to many facts of an organization and also helped me to gain practical knowledge,
which will go a long way in the horizon of our career. I became more aware of the soap industry
and the role played by KSDL.

Suggestions:
The company is suggested to improve the net profit by increasing the volume of sales, it is found
that sales percentage is fluctuating over the year.
The company is suggested to while forecasting sales. It is considered factors such as
competition, customers expectation and the market demand along with the past performance Of
the company.
The company is poor in advertising their products due to this consumer not able to find new
things in the products. To overcome these company, need to advertise their products by giving,
TV advertisements, posters etc...
This company is not doing any customer survey and market analysis but it is required for every
manufacturing company, this is suggested company to do.
This company was using same ingredients and chemicals as before this shows no advancements
and improvements in the products. The company has to improve the products.
This company is suggested to reduce the price in respect of their rival who keeps the prices as
competition as possible.
This company is suggested to promote their factory outlets, making consumers to purchase,
wherever consumer can buy the product.

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Conclusion:

The study of accounting, taxation and finance of manufacturing company KS&DL will remain as
household name to the people of India. Their ambition has always been and will continue, to
make soaps for the family of all around the country. And bringing new brands extension to suit
the need of traditional and modern scenario. The organization firmly believes that giving its
people the right encouragement yield in comparable rewards.
Emphasis is given to man, management and every opportunity so that people can grow with the
organization. Its giant infrastructure and network people working towards a common goal to give
the customer service and value that the deserve through relentless search of quality and pursuit of
excellence looking towards the next count

Bibliography

Books Referred:

13. S. Anil Kumar, V. Rajesh Kumar and B. Mariyaapa - Financial

Accounting, Himalaya Publishing House.
14. Dr. B. Mariyaapa – Business Taxation, Himalaya Publishing House.
15. CMA Dr. A. S. Gurudath, Dr. K. R. Mahesh Kumar and Dr. R. G. Saha –
Indian Accounting Standards, Vision Book House.
16. Kothari C. R. – Research Methodology: Methods and Techniques, New Age
International Publishers.

Websites:

• www.google.com
• https://en.m.wikipedia.org
• https://mysoresandal.karnataka.gov.in

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 Annexure

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 Questionnaire

Q1. What age profile do you belong to?

17. 20-30
18. 31-40
19. 41-50
20. Above 50

Q2. Do you use Mysore Sandal’s Products?

o Yes o No

Q3. What is your brand preference for soaps?

o Mysore
Sandal

o Himalaya

o Margo

o Lifebuoy

o Dettol

o Other

Q4. Do you prefer local

brand? o Yes o No

Q5. Since when do you using Mysore Sandal’s

product?

o Less than 6 months

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o 6 months-1year

o 1year-3year

o More than 3year

Q6. How do you rate the quality of Mysore Sandal over the period of time?

o Significantly
Better
o Better
o Neutral
o Worse
o Significantly
worse

Q7. What factors motivated you to buy Mysore Sandal’s products?

o Self

o Ads

o Family

o Relatives

o Neighbour

o Friends

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Q8. Which of these factors influence your buying behaviour of soaps?

o Price

o Brand
Name

o Quality

o Fragrance

o Packaging

Q9. How you find Mysore Sandal Products’ price?

o Very Low
o Low
o Reasonable
o High

o Very High

Q10. What you

rate Mysore
Sandal’s
products for
customers?

o Packaging

o Variety

o Price

o Quality

o Hygiene

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Q11. How would you rate Mysore Sandal’s Soaps for skin sensitivity?

o Oily

o Dry

o Normal/Com
bination

Q12. Do you buy Mysore Sandal’s gift pack?

o Yes o No

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