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    KANU PRIYA YADAV
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    This document provides an analysis of the costs and profitability of KGPL, an Indian company that manufactures bath and terry towels, plastic bags, and other products. It identifies the company's direct and indirect, fixed and variable costs. It presents cost sheets, a marginal cost sheet, and CVP analysis. Key observations are discrepancies between the cost sheet and marginal cost sheet results, and the company's dependence on other income to report a profit. Challenges for the company include inconsistent operating income, low contribution per unit, and high variable costs. Recommendations include increasing capital expenditures to decrease variable costs and improve profits, and strengthening internal controls to maintain consistent performance.

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    accounting

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    1_MANAC_FinalProject

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    This document provides an analysis of the costs and profitability of KGPL, an Indian company that manufactures bath and terry towels, plastic bags, and other products. It identifies the company's direct and indirect, fixed and variable costs. It presents cost sheets, a marginal cost sheet, and CVP analysis. Key observations are discrepancies between the cost sheet and marginal cost sheet results, and the company's dependence on other income to report a profit. Challenges for the company include inconsistent operating income, low contribution per unit, and high variable costs. Recommendations include increasing capital expenditures to decrease variable costs and improve profits, and strengthening internal controls to maintain consistent performance.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views14 pages

    1 MANAC FinalProject

    Uploaded by

    KANU PRIYA YADAV
    This document provides an analysis of the costs and profitability of KGPL, an Indian company that manufactures bath and terry towels, plastic bags, and other products. It identifies the company's direct and indirect, fixed and variable costs. It presents cost sheets, a marginal cost sheet, and CVP analysis. Key observations are discrepancies between the cost sheet and marginal cost sheet results, and the company's dependence on other income to report a profit. Challenges for the company include inconsistent operating income, low contribution per unit, and high variable costs. Recommendations include increasing capital expenditures to decrease variable costs and improve profits, and strengthening internal controls to maintain consistent performance.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 14

    Management

    Accounting Analysis
    of KGPL
    Presented By: Group 1
    Introducing KG Petrochem Ltd.

    01 02
    History Headquarters
    Incorporated: 1980 Jaipur, Rajasthan
    Listed on BSE: 1996

    03 04
    Products Major Clients
    Bath and terry towels, L&T Cement, ACC
    HDPE Sacks, PP Woven Vikram Cement, Grasim
    Bags Industries, etc.
    Identified Costs - Direct and Indirect

    Direct Costs

    Indirect Costs
    Identified Costs - Fixed and Variable

    Fixed Costs

    Variable Costs
    Cost Sheet
    Cost Sheet
    Cost Sheet
    Cost Sheet
    Marginal Cost Sheet
    CVP Analysis
    Observations

    Discrepancies in results
    The company sees a profit in 2019
    based on the cost sheet, but a loss
    Dependance on other on the marginal cost sheet which
    Insurance
    income does not reflect the change in Because the company's
    The company reports a profit for inventories, which is the cause.
    insurance costs were
    the fiscal year 2018–19,
    incurred on stock rather than
    however the cost sheet indicates
    any fixed assets, they have
    losses due to dependence on
    been categorised as a
    other income.
    variable expense.
    Challenges for the Company

    Inconsistent Low Contribution High Variable Costs Negative Margin


    Operating Income per Unit of Operation of Safety
    Recommendations

    Better Capital
    Increase in capital expenditures -
    Investments
    The company's investment
    expenditures would undoubtedly
    Attempt at consistent
    rise as a result, but the variable Strengthen its internal controls in
    costs that it faces annually would performance
    an effort to preserve consistency
    decrease. By doing so, the in its performance. To maintain a
    company's profits and consistent performance, standard
    contribution would both increase. operating procedures should be
    created, maintained, and checked
    periodically.
    Thank You!
    Presented by: Group 1
    Hitesh Chhatani PGP13106
    Hrishikesh Bordoloi PGP13107
    Kanupriya Yadav PGP13112
    Kashish Jain PGP13114
    Shreya Dhameja IPM01060
    Vaibhav Awasthi IPM01072

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