KARNATAKA HOSING BOARD

INDUSTRY PROFILE
Housing is one of the basic needs of mankind in terms of safety, security, self esteem, social status, cultural identity, satisfaction and achievement. It is one of the major determinants of economic well being. The development of satisfactory housing has always been the priority in both policy formulation and its implementation. A rapid rise in population results in higher demand of dwelling units for residential purpose. This coupled with the growth in household formation and increased rural-urban migration resulting from non-availability of opportunities in rural areas has resulted in severe pressure on urban infrastructure in recent years.

COMPANY PROFILE
BACKGROUND AND INCEPTION OF THE COMPANY:
Karnataka Housing Board (KHB) established under Karnataka Housing Board Act 1962 as a successor to Mysore Housing Board constituted in 1956. The primary objective of KHB is to make such schemes and carry out such works as are necessary for the purpose of dealing with and satisfaction the need of housing accommodations.

NATURE OF THE BUSINESS CARRIED:

KHB endeavors to meet the Housing requirements to all class of people Viz., Low Income Group (LIG), Middle Income Group (MIG) and High Income Group (HIG) categories.KHB townships are provided with basic infrastructure such as asphalted roads, drinking water, electricity, underground drainage etc. KHB townships provides civic cum commercial complexes in developed areas.

VISION:
To improve quality of life by establishing self-contained communities with state-of-the art amenities those are in harmony with the environment.

MISSION:
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KARNATAKA HOSING BOARD

To provide sustainable, equitable, eco-friendly, acceptable and affordable housing. To constantly improve delivery and quality. To constantly strive to work for customer satisfaction. To provide efficient urban infrastructure services. Function in a manner that is transparent, customer friendly, consultative and participative.

KHB QUALITY POLICY

KHB would like to bring more transparency in its operations. Hence it has opened up new wings like customer relation cell, property management and project management units to cater to the needs of the customer.

PRODUCT/SERVICES PROFILE:
Composite Housing Schemes(CHS) Group Housing Schemes Multistoried Apartments Labor Housing Schemes Sites & Service Schemes Satellite Towns

AREA OF OPERATION.
Karnataka Housing Board is the only organization developed and implemented housing projects throughout out the State. Its operation is throughout the state like Bangalore, Bidar, Gulbarga, Raichur..

OWNERSHIP PATERN
Karnataka Housing Board is lead by the Chairman and a 13 member Board in which 8 are officials while the remaining 5 are non-officials. The Chief Executive and Administrative Officer of the Karnataka Housing Board is the Housing Commissioner.

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KARNATAKA HOSING BOARD

INFRASTRUCTURE facilities of KHB IN BANGALORE :

Karnataka Housing Board offers all the basic infrastructure including drinking water, electricity, under ground drainage, paved roads, etc. within its townships.

ACHIEVEMENTS OF KHB
Developer over 950 housing schemes. Provides 1,101000 houses and 6700sites Taken up composite housing and site and service schemes. Nodas Agency for National games village complex , Bangalore.

FUTURE GROWTH AND PROSPECTS:

Proposal for purchase of land at a total amounting to Rs.500.00 Crores for the year 2010-11.

Completion of balance work of 100 Housing Projects at Rs.101.76

Crores. Implementation of other board schemes at the project cost of

Rs.150.65 Crores. Pilot Project Expenditure of Rs.1.00 Crores

MCKINSEYS FRAMEWORK
The 3s across the top of the model are described as hard S (i.e. Strategy, structure, systems)

Strategy: The direction and the scope of the company over the long term. Structure: The basic organization of the company, its department, reporting lines, areas

of expertise, and responsibility.

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KARNATAKA HOSING BOARD Systems: Formal and informal procedure that govern every day activity, covering

everything from management information system. The 4ss across the bottom of the model are less tangible, more cultural in nature and were termed soft ss by mckinsey. Skills: The capabilities and competence that exists within the company. Shared values:

The value and beliefs the company. Ultimately they guide employees towards valued behavior. Staff: The companys people resources and how they are developed, trained and motivated. Style:

The leadership approach of top management and the companys overall operating approach.

Shared values:

It refer to the core or fundamental values that are widely shared in the organization and serve as guiding principles that are important

SWOT ANALYSIS
STRENGTHS:
1) KHB is already established in whole Karnataka and also a govt based company. 2) Financial Position of KHB is very strong. 3) It has customer friendly and hard working employees. 4) It has the best Architect Panel.

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KARNATAKA HOSING BOARD

WEAKNESSES: 1) Delay in working process due to lengthy formalities & require of Govt approval.
2) KHB is facing very much time gap between the Identification and 3) Implementation & Completion of the project.

OPPORTUNITIES: 1) Government Project Contracts are reserved for KHB.

2) City development & infrastructure development projects are available to KHB. 3) It can diversify, be number 1 in Karnataka and be competitive to private sector.

THREATS:
1) Entry of Private Builders and agencies in Construction Projects. 2) Companies are engaged themselves in construction of own office buildings, colonies etc. like Banks, LICs, Factories.

ANALYSIS OF FINANCIAL STATEMENT

1. The financial statement of the board has been prepared on historical cost basis and

confirm to the generally accepted accounting practices /accounting standards. 2. fixed assets are stated at cost less accumulated depreciations. 3. Depreciations on fixed assets is provided on straight-line method.

GENERAL INTRODUCTION
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KARNATAKA HOSING BOARD

Meaning of Receivables The term Receivables is defined as Debt owed to the firm by customers arising from sale of goods or services in the ordinary course of businesses. When a firm makes an ordinary sale of goods or services, does not receive payment, the firm grants trade credit, and creates Accounts Receivables, which could be collected in the future. TITLE OF THE TOPIC The title of the project is A study of Analysis & Interpretation of Receivable management at Karnataka housing board. STATEMENT OF THE PROBLEM A receivable management is the important function for any organization. Before granting credit, the firm has to look at the credit worthiness of the customer because it carries a certain degree of risk. Thus, a detailed study and analysis of the policies, procedure and terms followed by Karnataka housing board. (KHB), in its credit sales is undertaken to ensure that the company does not face any difficulty in recovering the amount. OBJECTIVE OF STUDY To analyze the credit policy at Karnataka housing board. To understand the impact of Receivables on profitability. To analyze the cash discounting decisions. To find out the marginal cost benefits. To analyze the key ratios associated with receivables management.

SCOPE OF STUDY

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KARNATAKA HOSING BOARD

This study is exclusively conducted for Karnataka housing board, to analyze the Receivables Management System in addition to examining the impact of receivables on profitability, working capital requirement and liquidity analysis. The area of study is at Bangalore. METHODOLOGY This project is a Study on Receivables Management of Karnataka housing board. The research is done with the aid of the annual reports, the company database text books and the observation and interaction being the only source of primary data whatever is used. The same set information is analyzed to make the critical evaluation of the material. With the given nature of research this is an analytical type of research wherein the analysis of the existing set of affairs are used to arrive the effect of Receivables Management on the return and profitability of the company. DATA COLLECTION SOURCES Primary Data Primary data are collected by the researcher, with respect to the problem under study, is known as primary data. Primary data is also the first-hand data collected by the researcher for the immediate purpose of the study. SECONDARY DATA When data is derived from other sources, then data is called as secondary data. Most of the facts and figures in this report came from published sources like company manuals and website of company i.e... WWW.karnataka housing board.com and reports. LIMITATIONS OF STUDY Study will make an extensive use of information provided by financial statements, and if there is window dressing, the findings could be misleading. This being an academic study it suffers from time and cost consideration

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KARNATAKA HOSING BOARD

FINDINGS
1) Table one says the debt collection period it indicates the company is not able to manage its debt collection Efficiently this can adversely Effect on the working capital position of the company. 2) Table two says debtor collection period finally it increased to16.96 this collection period efficiently is not working. 3) Table three says current ratio the current ratio is not as per not standard ratio2:1 4) Table four says the liquidity ratio first two years it is less than the standard ratio but in the year 2009-10 it is more than the standard ratio. 5) Table five says Debt Equity Ratio is increased 0.42:1 this debt equity ratio is efficiently. It is the company following debt equity ratio as per the standard.

SUGGESTIONS
1) It is recommended to company management that that the debt collection period ratio must be improved and it has to see that it must work efficiently. 2) It is suggested that collection period ratio must be improved and it has to be see that it must work efficiently. 3) It is adviced to the company management that the current ratio must match As per the standard 2:1.
4) It is recommended to the company management to see that liquidity ratio must

match According to the standards. 5) It is recommended that the company must maintain the debt equity ratio as per the standard 2:1.

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KARNATAKA HOSING BOARD

CONCLUSIONS

Finally we can conclude that the study on receivables management with reference to Karnataka housing board reviews that over all the ratios with reference to receivables management are satisfactory and few ratio are under performed which the company as to take care and see that which can be improved in coming years which can meet industries standards.

DEPARTMENT OF MANAGEMENT STUDIES NCET BANGALORE