ankush project final
TRANSCRIPT
A PROJECT REPORT
ON
“COMPARATIVE BALANCE SHEET OF VERKA MILK PLANT”
Submitted by
ANKUSH DATTA
(Reg. No. - 90752234933)
A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT FOR THE
AWARD OF THE DEGREE
Of
MASTER OF BUSINESS ADMINISTRATION
under the guidence of
lect. NEELKASHI
Submitted to
“PUNEET SHARMA”
SRI SAI INSTITUTE OF ENGINEERING & TECHNOLOGY
PUNJAB TECHNICAL UNIVERSITY, JALANDHAR (PB)
JUNE-JULY 2010
1
CONTENTS
* Declaration
* Certificate from the plant
* Preface
* Acknowledgement
2
DECLARATION
I Ankush datta, hereby declare that the work presented herein is
genuine work done originally by me and has not been published or
submitted elsewhere for the requirement of a degree programme. Any
literature, data or works done by others and cited within this project
report has been given due acknowledgement and listed in the
reference section.
Ankush datta
Roll No: -90752234933
Date: 15th June 2010
3
CERTIFICATE
This is to certify that this dissertation entitled “COMPARATIVE
BALANCE SHEET” is the result of the research work carried out by
“ANKUSH DATTA” in verka milk plant ,gurdaspur.
SIGNATURE HEAD OF DEPARTMENT
4
PREFACE
5
PREFACE
“Education is not filling of pail, but the lighting of a fire”.
“Training is the ability to listen to almost anything without losing your
temper or your self confidence”.
Practical training imbibes an integral part of management studies. One
cannot merely upon the theoretical knowledge. It is to be coupled with
practical for it to be a fruitful classroom lectures make the fundamental
concept of management clear. They also facilitate the learning of
practical things. However class lectures must be correlated with
practical in the company has a significant role to play in the subject in
business management. To develop management and administrative
skill in future managers have to enhance their analytical skills, it is
necessary that they combine their classroom learning with the
knowledge of real business environment.
After liberalization myself Indian economy scene I really a buzz with
activity. Lots and lots of multinational companies are coming in with
their technical expertise and proven management concepts. Industrial
activity in Indian has become a thing to watch and I really wanted to
be of it and it was essential for me being a management student.
For this reason SRI SAI COLLEGE OF ENGINEERING AND TECHNOLOGY
BADHANI designed a scheme under which student of Master of
Business Administration go for Summer Training between second and
third semester.
During this period, I have written a report about knowledge,
experienced I gained, and findings I made in course of the training.
This report has been written in simple language specifying the
organizational set up and management procedure of Verka Milk Plant,
Gurdaspur and along the comparative balance sheet of the Milk Plant.
6
It is difficult to elaborate everything which learned during the training
however, I have endeavored too many, comprehensive picture of
details about working in the following pages. I have accumulated the
desired information through personal observation, study of documents
and discussions
Any omission or error is deeply regretted.
AKNOWLEDGEMENT
7
ACKNOWLEDGMENT
In a dynamic and complex industrial and marketing environment,
theoretical concepts and classroom, teaching is not enough to impart
professional knowledge and skills to the future managers. In this
regard, I feel quite indebted to Management Department of SRI SAI
COLLEGE OF ENGINEERING AND TECHNOLOGY BADHANI for providing
me with a tremendous skills and getting me exposed to the
philosophies and psychologies behind the complex corporate world and
marketing environment.
It is quite heartening to note about the successful completion of my
training and project report. But without the effort - support and co-
operation of various persons, this result may not have been possible.
So, I feel that this report would be incomplete without thanking the
people who helped me in completion of the training and project report.
First of all, I wish to express my sincere thanks to Mr. P.B.Singh general
manager for allowing me to undergo my training.
I am heartily thankful to R.N.Mahant manager of Accounts for their
sincere and devoted guidance during the training. I would also like to
thank all the employees of Accounts Department and all other
Departments to complete this report.
8
Last but not the least I thank my parents, friends and kith and kins for
their support during my research work, as without their cooperation I
would not have been able to do any research so efficiently and
effectively.
DEPARTMENT OF MANAGEMENT
S.S.C.E.T.COLLEGE OF BADHANI, PATHANKOT
(SESSION2009-2011)
INDEX:-
S.No Chapter Page no.
1 Introduction of the project
Objective , Need, Scope &
Methodology
11-16
2 Industry Profile
- Dairy Industry in India
- Leading Brands
- Lead Players
- Dairy Whiteners
- Major Players
17-33
9
3 Company Profile
- History
- Location
- Capacity of Plant
- Milk Feds Network
- Controlling Authorities
- Government Support
- Milk Procurement at Milk
- Plant Chilling Stations
- Air/Water Pollution Control
34-41
4 Punjab’s Pride :
- Milk
- Ghee
- Lassi
- Panjiri
- Kheer
- Khoa
42-47
5 Quality Policy
- Quality
- Engineering
48-50
6 Organizational Chart. 51-54
7 Human Resource Development 55-56
8 SWOT Analysis
- Strength
- Weakness
- Opportunities
- Threats
57-59
9 Profit & Loss Account - Manufacturing , Trading, Profit & Loss Account of 2009 – 2010
60-62
10 Balance Sheet of 2008-09 and 63-65
10
2009-1011 Comparative Balance Sheet
- Balance Sheet of 2008-09 and 2009-10
66-68
12 Data Interpretation 69-7513 Suggestions 76-77
14 Bibliography 78-79
15 Appendix 80-82
16 Project Synopsis
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CHAPTER 1
INTRODUCTION
12
COMPARATIVE BALANCE SHEET
A comparative balance sheet is designed to show financial differences
between several accounting periods. A balance sheet is a detailed
account of everything lost and gained financially during a certain time,
containing both physical and abstract data. A comparative balance
sheet is useful because a business can instantly compare profits and
losses between different time periods. Most businesses use
comparative balance sheets to help increase profits and functionality
of a company.
Features
A comparative balance sheet will include several different types of
accounting data. First there will be the income received and money
spent. There will also be a list of credits and debits to the company. A
list of assets and liabilities is also included. All of these factors are
necessary to see what the total worth of the company is through the
balance sheet. The comparative balance sheet allows the company or
business to see at a glance how its profits differ from one year to
another. These comparative balance sheets are aligned so that
business people can see at a glance the financial differences from year
to year.
Function
A balance sheet is designed to help keep a business or company aware
of every expense and profit that it is receiving. It also allows the
company to see which times of the year are most profitable, and which
years they did the best. This knowledge is important so that the
13
company can adapt to the information to build the best business
possible. If the business did better three years ago, they can look at
that data and try to decide what it was that made them do so well that
year. Then they can change what they are doing in the present to help
boost current profits.
Benefits
The main benefit of a comparative balance sheet is that profits and
losses can be seen at a glance. It is also possible to see the increase or
decrease of assets that the business has. The company will be able to
tell what the biggest money suckers in the business are, and try to
think of ways to cut down losses in that area.
Significance
Without a comparative balance sheet, businesses would not know how
to change their strategy from year to year. All they would have to go
on would their current balance statements. This would be detrimental
to most businesses. It is very important to be able to look at past profit
information to judge how to act for the future.
Expert Insight
Most businesses and companies use comparative balance sheets. It
would be a very poor business decision not to use them. A lot of times
these comparative balance sheets are used when proposing new
additions or changes to a business. The company can go back as many
as 10 or 20 years to identify trends, and to judge if a new project is
right for the company. Comparative balance sheets are a necessity in
the business world.
14
RESEARCH METHODOLOGY
15
RESEARCH METHODOLOGY
Research refers to a search for knowledge. This research defines the
problems of retailers and perception of citizens. Research comprises
defining and redefining problems, formulating hypothesis or suggested
solutions; collecting, organizing and evaluating data; making
deductions and reaching conclusions; and at last carefully testing the
conclusions to determine weather they fit the formulating hypothesis.
It presents the research design, sampling procedure, tools of
investigation, collection of data and the limitations of the study.
4.1 RESEARCH DESIGN
This research was descriptive and conclusion oriented research.
a) Descriptive Research:
The research was a descriptive research as it was concerned with
specific predictions, with narration of facts and characteristics
concerning individuals, groups or situations.
Sampling Techniques: The sampling techniques used are convenient
technique and simple random sampling technique.
Convenient Technique: A non-probability sampling technique that
attempts to obtain a sample of convenient elements. The selection
of sampling units is left primarily to the interviewer.
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COLLECTION OF DATA
Data is obtained from important source:
Secondary data
Secondary Data
The sources of secondary data are:-
1. Corporative magazines2. Manuals of various companies3. Various publications 4. Books, magazines of particular clubs and newspapers
17
Chapter 2
Company Profile
18
INDUSTRY PROFILE
Dairy Industry in India :-
India has the highest livestock population in the world with 50%
of the buffaloes and 20% of the world’s cattle population, most of
which are milch cows and milch buffaloes. India’s dairy industry is
considered as one of the most successful development programmes in
the post-Independence period.
In the year 2006-07the total milk production in the country was
over 94.6 million tonnes with a per capita availability of 229 gms per
day. The industry had been recording an annual growth of 4% during
the period 1993-2005, which is almost 3 times the average growth rate
of the dairy industry in the world. Milk processing in India is around
35%, of which the organized dairy industry account for 13% of the milk
produced, while the rest of the milk is either consumed at farm level,
or sold as fresh, non-pasteurized milk through unorganized channels.
Dairy Cooperatives account for the major share of processed
liquid milk marketed in the India. Milk is processed and marketed by
170 Milk Producers’ Cooperative Unions, which federate into 15 State
Cooperative Milk Marketing Federations. Over the years, several
brands have been created by cooperatives like Amul (GCMMF), Vijaya
(AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma
(Kerala) and Gokul (Kolhapur).
Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat,
Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu are the milk
surplus states in India. The manufacturing of milk products is obviously
19
high in these milk surplus States. Exports of dairy products have been
growing at the rate of 25% per annum in the terms of quantity terms
and 28% in terms of value since 2001. Significant investment
opportunities exist for the manufacturing of value-added milk products
like milk powder, packaged milk, butter, ghee, cheese and ready-to-
drink milk products.
India has emerged as the largest milk producing country in the
world with present level of annual milk production estimated as 94.5
million tonnes. We expect a production level of 135 million tonnes by
the year 2015. India has a large livestock population base constituting
278 million livestock including 180.5 million cattle, 82.8 million
buffaloes, 4 million sheep and 9.2 million goats. The livestock
population is projected to increase to 322 million by the year 2015. The
large livestock population is raised primarily on crop residues and
grazing in the common property including basement. The forest area,
which was a major source of grazing, is no longer available to livestock
breeders especially landless people. As a consequence, the available
feed resources fall short of the nutritional requirement. The shortfall is
estimated as 59.9 million tonnes for the green fodder and 19.9 million
tonnes for dry fodder. This shortfall is likely to increase by 2015 to 63.5
million tonnes of green fodder and 23.56 million tonnes of dry fodder.
The landless people are, therefore, likely to face severe shortage
of resources to raise cattle and other species of livestock. There is a
real danger that in the absence of resources to maintain their stock,
these under-privilege rural people may give up livestock farming. This
could be a serious setback to lakhs of rural families who derive income
as well as employment opportunities from livestock sector.
20
India prepares to tackle the international market following Japan,
where milk consumption today, has more than trebled to 70 kg per
capita from a mere 20 kg in the 'sixties - the consumption of dairy
products in other Asian 'tiger' nations is also growing. As a
consequence - creating excellent export opportunities for India, as
these nations are deficient in milk by at least 3 million tonnes per year.
India, with some 27 per cent of Asia's population, accounts for more
than half of the milk output with enough growth potential to explore
foreign markets. In anticipation of the export opportunities and in view
of the post GATT scenario, India is gearing up to tackle the demands of
the international market.
Indian companies are preparing themselves to meet international
standards and other non-tariff barriers. Planners are taking measures
to meet the sanitary and phyto-sanitary specifications - prescribed by
Office International des Epizooties (OIE) under the auspices of the
World Trade Organization (WTO) -, which range from the quality
assurance of processed dairy products to the health status of livestock.
Leading Brands
Amul, Vijaya, Verka, Vadilal, Kraft, Britannia.
Market Growth Rates
1990-91 – 1996-97 18.5%
1996-97 – 2001-02 20.6%
2001-02 – 2006-07 11.7%
2004-05 – 2009-10 9.4%
2009-10 – 2014-15 7.4%
Lead Players
The lead players in processed milk products in the market are as
follows:-
21
Amul, Britannia, and others include Vijaya, Verka and Vadilal. In the
category of cheese Amul, Britannia Dabur (Le Bon) are the leading
players including others like Verka, Nandini, Vijaya and Vadilal
Dairy Whiteners
About 15% of the total milk output in India is estimated to be
processed in the organized dairy. The industry has maintained a high
growth profile, especially in the wake of the Operation Flood,
colloquially also termed as White Revolution, initiated in early 1980s.
Today, India produces over 85 mn tonnes of milk annually. The total
milk economy is estimated at Rs 1300 billion in terms of value.
The market for dairy whiteners (commercially know as beverage
milk powders and condensed milk) and creamers is around Rs 3,000
mn. Apart from MNCs like Nestle and companies like Britannia, the
Indian enterprises have also made perceptible progress. Names like
Amul, Sapan, Vijaya, Mohan, Parag and several others have been seen
in the marketplace with their whiteners. These are available mostly in
pouches, tetrapacks, and in the near future, may be in miniportion
cups.
Aseptically packed creamer in miniportions is widely used in the
West, but has yet to enter the Indian market in any substantial way.
Amul did make a beginning with its whitener pouches and has
emerged as a leader with a market share of 45% followed by
Nestle’s 23%. Aseptically packed creamer involves techniques to
impart a longer shelf life to the product. It is packed in small cups
ready to be poured into a cup of tea or coffee. Creamer is fresh milk
with increased fat content (upto 12%) and is aseptically packed after
undergoing Ultra Heat Treatment (UHT) at 1400 C. Its
22
introduction will affect the existing whitener market as a natural milk
product with a longer shelf life.
Britannia forayed into the dairy business as a diversification
move in 1997. Its first offering, Milkman Butter, just managed a 5%
share. The dairy business claims a 10% share in Britannia's topline.
The company had drawn up plans to atleast capture 5% of the overall
fresh milk market estimated by Britannia at Rs 420 bn. Extending the
product portfolio beyond cheese, dairy whitener and butter, Britannia
entered the fresh milk segment in 2001. In the dairy whitener, the
company has managed to capture a significant market share.
Nestle:-
Nestle India with its Everyday dairy whitener has established its
brand well. It has also entered into the market with its Nestle Pure Milk
and, of course, a product in its niche area, Nescafe Frappe. Having
earlier launched UHT milk, Nestle is concentrating on expanding its
reach. Its plans covered Rs 800 mn investment in its Moga (Punjab)
facility. New product segments like butter, yoghurt and flavoured
milk were also on the cards.
While Sapan characterises it as Dairy Special (instant milk mix for tea
and coffee), Vijaya is the only UHT processed milk homogenised brand
sold in the market in 200 ml and one litre tetrapack. All the rest,
Amulya, Meadow, Mohan, Parag and Shweta dairy whiteners are in the
form of powders. Mohan also markets a non-dairy whitener alongside
its dairy type product.
Since India is a major consumer of tea and coffee, it would be a very
large market if only the price was not a constraint. In addition to
domestic consumption, the whiteners/creamers find a high level of
institutional acceptance, especially by railways, hotels and
restaurants, airlines, hospitals and nursing homes and corporate
23
offices. The institutional market can be tapped first, in particular, the
airlines, railways and hotels. The penetration can then be extended to
the household sector. The potential for exports, especially to
neighboring countries and the countries in the Middle East, the Gulf
and Africa, also exist and could be exploited.
Dairy Whiteners / Creamers
Demand: Past & Future
Year th MT
1990-91 80
1991-92 83
1992-93 85
1993-94 86
1994-95 89
1995-96 91
1996-97 99
1997-98 95
1998-99 135
1999-00 183
2000-01 147
2001-02 160
2002-03 175
2003-04 190
2004-05 206
2005-06 224
2006-07 243
2007-08 263
2008-09 284
2009-10 307
2014-15 450
24
Lead Players
Nestle, Amul, Britannia, Dynamix Diary, Sterling Agro, Haryana Milk
Foods, Mohan Food, Modern Dairy, K Dairy
Leading Brands
Amul, Sapan, Vijaya Spray, Meadow, Mohan, Parag, Shweta, Malkana,
Gagan, White Magic, Every Day.
Market Growth Rates
1990-91 - 1996-97 3.6%
1996-97 - 2001-02 10.1%
2001-02 - 2006-07 8.7%
2004-05 - 2009-10 8.3%
2009-10 - 2014-15 8.0%
The main thrust of proposals is on the improvement of animal
health and adoption of sanitary and phyto-sanitary specifications (SPS)
for dairy products. Towards this end, the Technology Mission on Dairy
Development (TMDD) has initiated a wide-ranging program.
Table 1: Milk Utilisation Pattern in India, 1943-2004
Year 1943* 1956 2004
Milk Production (million tones) 23.5 17.8 91
Mil Utilisation (Percentage) 100 100 100
Liquid Milk 28.0
%
39.2
%
46.0
%
Traditional Products 72.0 60.8 50.0
25
% % %
Ghee/Makhan (clarified butter) 58.7
%
46.0
%
33.0
%
Dahi (Yogurt-like) 5.2% 8.8% 7.0%
Khoya (Partially desiccated Milk 5.0% 4.4% 7.0%
Chhana and Paneer (unprocessed cottage
cheese)
3.1% 1.6% 3.0%
Western Products: Milk Powder, etc Neg Neg 4.0%
*Includes Pakistan and Bangladesh
Source: Handbook on Technology of Indian Milk Products
The upsurge in milk production has thrown up challenges in milk
marketing. The country is blessed with an enormous domestic market
because of the following factors: Large population and its continuous
growth, low level of per capita milk consumption and hence large size
of potential, but latent demand, increasing purchasing power, which is
already in evidence, will transform the huge latent demand into real
demand. The groups of dairy products offering exciting marketing
opportunities are liquid milk itself, which accounts for a sizeable part of
the milk consumption products, in which our dairy industry already has
demonstrated considerable expertise, like milk powders, butter and
ghee. The ability to manufacture the relatively new and sophisticated
products like cheese and ice cream alongside the traditional products
like paneer, khoya and milk-based sweets are now being manufactured
on a large scale. Utilization pattern
Table 2: Projected demand for major milk products in the organized
26
sector, 1988-2009/ metric tonne
Product Demand 1988 Project demand 2009
Ghee 100,000 200,000
Cheese 4,200 15,000
Paneer 1,000 16,000
Shrikhand 3,000 5,650
Rasgolla 1,600 6,000
Gulabjamun 3,000 5,850
As shown in the table, of the total milk produced in the country,
nearly 46 per cent is consumed as liquid milk and the balance
converted into various dairy products, such as ghee, butter, milk
powder, ice cream, cheese, condensed milk and for making various
kinds of sweetmeats having distinct regional preferences. Dairy
products an estimated 54 per cent of India's milk production is
converted into products, both traditional and Western. In this, the
share of traditional products is about 50 per cent, accounting in 2001
for a little over 42 million tonne of milk, which yields over 10 million
tonne of mithais and other related products per year. The growth
projections for their demand in the organized sector are presented in
Table above.
Commercial production of traditional products
With the increase in the availability of liquid milk and Western
dairy products, refinement in the marketing network and significant
improvement in per capita income, there is an increased pressure for
the restructuring of the indigenous milk product industry. Now, the
organized sector has started showing keen interest in processes and
equipment for manufacturing traditional products standardization of
products, as well as refinement in packaging and improvement in
safety and shelf life. Any innovation which can enable the organized
27
sector to manufacture and market indigenous milk products on an
industrial scale can have a far reaching impact on the dairy industry as
well as on the economic condition of milk producers. The market for
indigenous products far exceeds that for Western dairy products like
butter, milk powder and cheese.
A great scope exists for further expansion of the market for
indigenous milk products, provided quality and safety are ensured and
the shelf life is extended to facilitate distribution over larger areas.
Major innovations are needed in manufacturing, quality assurance,
packaging and process engineering to adapt these products to current
marketing and consumer requirements. Some commercial processes
have been developed to manufacture ghee, khoya, shrikhand and
gulabjamun, but much is required to be done.
Major Players
The dairy industry is dominated by the co-operative sector.
About 60% of the installed processing capacity is in the co-operative
sector.
The National Dairy Development Board (NDDB) is a major player in the
market with its major brand, Amul. Leading brands like Amul, Nestle,
Mother Dairy and Britannia are in the race to tap the growing market.
SmithKline Beecham Consumer Healthcare, Nestlé India and
Heinz India are amongst the large MNCs that dominate the high-value
milk products market. Other players include Indiana Dairy Specialties,
Jagatjit Industries Ltd and various other state cooperatives.
Some dairy plants have production of mithais on a commercial
scale. Some national brands like Haldiram, Bikanervala, K C Das,
Chitales, Ganguram, Brijwasi, Agarwal Sweets etc are getting wide
acceptance because of consistent quality Encouraged by the growing
28
market and cashing on brand value select dairy companies are
planning major expansion plans in various cities with new brands
suited to local taste and preferences and realizing higher prices with
higher sales volumes and product safety.
The milk and dairy products segment is set for up gradation of cold-
storage chains for expansion. Mother Dairy, a wholly owned subsidiary
of National Dairy Development Board plans to make strong presence in
the market of milk and milk products under the Mother Dairy brand
through retail outlets across the country in addition to its own 300
outlets with provision of cold storage and cold chains.
Production in India
Year Production (Million Tonnes) Per Capita Availability
(gms/day)
1991-
9255.7 178
1992-
9358.0 182
1993-
9460.6 187
1994-
9563.8 194
1995-
9666.2 197
1996- 69.1 202
29
97
1997-
9872.1 207
1998-
9975.4 213
1999-
200078.3 217
2000-
0180.6 220
2001-
0284.4 225
2002-
0386.2 230
2003-
0488.1 231
2004-
05*90.7 229
2005-
06
94.6
220
Source: State/UT Animal Husbandry Departments, 2004
*Source: Production Estimate of MILK, EGG, MEAT and WOOL of the year 2004-
2005
Estimates of Milk Production - State wise
(000 tones)
30
State
1997-
98
1998-
99
1999-
2000
2000-
01
2001-
02
2002-
03
2003-
04 2004-05 *
All India 72128 75424 78286 80607 84406 86159 88082 90715
Andhra
Pradesh 4473 4842 5122 5521 5814 6584 6959 7252
Arunachal
Pradesh 43 45 46 42 42 46 46 48
Assam 719 725 667 683 682 705 727 739
Bihar 3420 3440 3454 2489 2664 2869 3180 2974
Goa 38 41 44 45 45 46 48 57
Gujarat 4913 5059 5269 5312 5862 6089 6421 6745
Haryana 4373 4527 4679 4850 4978 5124 5221 5222
Himachal
Pradesh 714 724 742 761 756 773 786 870
J & K 1167 1232 1286 1321 1360 1389 1414 # 1422
Karnataka 3970 4231 4471 4599 4797 4539 3857 3917
Kerala 2343 2420 2532 2605 2718 2419 2111 2025
Madhya
Pradesh 5377 5442 5519 4761 5283 5343 5388 5506
Maharashtra 5193 5609 5707 5849 6094 6238 6379 6567
Manipur 62 65 68 66 68 69 71 75
Meghalaya 59 61 62 64 66 68 69 71
Mizoram 17 20 18 14 14 15 15 16
Nagaland 46 48 48 51 57 58 63 69
31
Orissa 672 733 850 876 929 941 997 1283
Punjab 7165 7394 7706 7777 7932 8173 8391 8554
Rajasthan 6487 6923 7280 7455 7758 7789 8054 8310
Sikkim 35 35 35 35 37 45 48 46
Tamil Nadu 4061 4273 4586 4910 4988 4622 4752 4784
Tripura 57 76 77 77 90 79 84 86
Uttar
Pradesh 12934 13618 14152 13857 14648 15288 15943 16512
West Bengal 3415 3441 3465 3471 3515 3600 3686 3790
A&N Islands 22 22 23 22 23 26 25 24
Chandigarh 43 43 42 43 43 43 44 43
D&N Haveli 4 8 8 8 8 8 8 4
Daman & Diu 1 1 1 1 1 1 1 1
Delhi 267 290 290 291 294 296 299 303
Lakshadwee
p 1 2 1 2 2 2 1 1
Pondicherry 36 36 37 37 37 37 40 41
Chhattisgarh - - - 777 795 804 812 831
Uttaranchal - - - 1025 1066 1079 1188 1195
Jharkhand - - - 910 940 952 954 1330
Source: Basic Animal Husbandry Statistics, 2004
* Source: Production Estimate of MILK, EGG, MEAT and WOOL of the year 2004-05
# Projected by state
Source: Indiandairyassociation.com
32
In addition to the above-mentioned points - there are areas where
major thrust is required:
Brand image or major players needs to be projected in leading
international dairy trade fairs, particularly of those countries to which
exports are being targeted. Another step may be to encourage
technical collaboration and marketing tie-ups with leading international
dairy companies With the liberalization and open policies of the
Government and the restructuring of the economy the dairy industry is
undergoing major developments. This has brought about greater
participation of the private sector. This is also consistent with global
trends, which can hopefully lead to greater integration of Indian
dairying with the world market for milk and milk products. India is
witnessing winds of change because of improved milk availability, a
changeover to market economy, globalization and the entry of the
private sector in the dairy industry. The value addition and variety in
the availability of milk products are on everybody's agenda. There is a
consistent increasing demand for new products and processes. The
major reasons are an increase in disposable incomes, changes in
consumer concerns and perceptions on nutritional quality, hygiene and
safety, arrival of foreign brands, increasing popularity of satellite or
cable media and availability of new technologies and functional
ingredients. India is the world's largest milk producer in the present
scenario.
HISTORY
Amul was formally registered on December 14, 1946. The brand
Amul, sourced from the Sanskrit word Amoolya, means priceless. It was
suggested by a quality control expert in Anand. Some cite the origin as
an acronym to (Anand Milk Producers Union Limited).The Amul
revolution was started as awareness among the farmers. It grew and
33
matured into a protest movement that was channeled towards
economic prosperity.
Setting Up of Gujarat Cooperative Milk Marketing Federation
In 1954, Kaira District Co-operative Milk Producers’ Union built a
plant to convert surplus milk produced in the cold seasons into milk
powder and butter3. In 1958, a plant to manufacture cheese and one
to produce baby food were added. Subsequent years saw the addition
of more plants to produce different products. In 1973, the milk
societies/district level unions decided to set up a marketing agency to
market their products. This agency was the Gujarat Cooperative Milk
Marketing Federation (GCMMF). It was
registered as a co-operative society on 9 July 1973.
Nestlé’s relationship with India dates back to 1912, when it
began trading as The Nestlé Anglo-Swiss Condensed Milk Company
(Export) Limited, importing and selling finished products in the Indian
market.
After India’s independence in 1947, the economic policies of the
Indian Government emphazised the need for local production. Nestlé
responded to India’s aspirations by forming a company in India and set
up its first factory in 1961 at Moga, Punjab, where the Government
wanted Nestlé to develop the milk economy. Progress in Moga required
the introduction of Nestlé’s Agricultural Services to educate, advise
and help the farmer in a variety of aspects. From increasing the milk
yield of their cows through improved dairy farming methods, to
irrigation, scientific crop management practices and helping with the
procurement of bank loans. Nestlé set up milk collection centres that
34
would not only ensure prompt collection and pay fair prices, but also
instil amongst the community, a confidence in the dairy business.
Progress involved the creation of prosperity on an on-going and
sustainable basis that has resulted in not just the transformation of
Moga into a prosperous and vibrant milk district today, but a thriving
hub of industrial activity, as well. For more on Nestlé Agricultural
Services.
Nestlé has been a partner in India's growth for over nine decades
now and has built a very special relationship of trust and commitment
with the people of India. The Company's activities in India have
facilitated direct and indirect employment and provides livelihood to
about one million people including farmers, suppliers of packaging
materials, services and other goods.
The Company continuously focuses its efforts to better
understand the changing lifestyles of India and anticipate consumer
needs in order to provide Taste, Nutrition, Health and Wellness through
its product offerings. The culture of innovation and renovation within
the Company and access to the Nestlé Group's proprietary
technology/Brands expertise and the extensive centralized Research
and Development facilities gives it a distinct advantage in these
efforts. It helps the Company to create value that can be sustained
over the long term by offering consumers a wide variety of high
quality, safe food products at affordable prices.
35
Nestlé India manufactures products of truly international quality
under internationally famous brand names such as NESCAFÉ, MAGGI,
MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in
recent years the Company has also introduced products of daily
consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ
Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita.
Nestlé India is a responsible organization and facilitates
initiatives that help to improve the quality of life in the communities
where it operates.
NESTLÉ Milk ensures high quality and safety. NESTLÉ Milk goes through
Ultra Heat Treatment to provide bacteria-free milk to its consumers.
The product also goes through stringent quality checks and can be
consumed straight from the pack as no boiling is required. The sealed
pack of NESTLÉ Milk has a shelf life of 120 days without refrigeration.
However, once opened, it must be refrigerated. The packaging is
tamper-evident.
NESTLÉ Milk is available in all metros AND some other states also.
Today, Nestle is the world's largest and most diversified food company.
It has around 2,50,000 employees worldwide, operated 500 factories in
approximately 100 countries and offers over 8,000 products to millions
of consumers universally
36
Chapter 3
Company Profile
37
COMPANY PROFILE
The Punjab state co-operation Milk Producers Federation Ltd. popularly
known as MILK FED – PUNJAB came into existence in 1973. It was
backed by twin objective of providing remuneration milk to the market.
Although the federation was registered a lot earlier, it took the centre
stage of Punjab Diary Scenario in 1983 when all the Milk Plants of
Punjab Dairy Development Corporation Ltd. were handed over to co-
operative sector and the entire state was covered under operation
flood to give the formers better value and customers better products.
The organizational set up of MILK FED is based on three tire systems
38
1. Milk producer co-operative societies at Village Level (Primary Co-
operative Societies).
2. Milk Co-operative union of Districts levels (Unions).
3. Co-operative milk marketing federation as an apex body at State
Level (MILK FED).
MILK FED with its network of over 5000 village milk producers co-
operative societies and three lacs milk producers from a strong
network providing assured market to milk producers. MILK FED and its
units have a workforce of about 5000 employees and also provide
regular employment to as out 600 transporters.
HISTORY: -
Milk Plant Gurdaspur, whose foundation stone was laid down by
S.Santokh Singh Randhawa (Dairy Development Minister of Punjab)
then commissioned by Punjab Dairy Development Corporation in
Aug.22nd, 1983. It is spread construction of the plant was begun in
1986-82 and it started working in 1986-87. It was registered under Co-
operative Societies Act with Registration License No. 31/R – MMPO/93.
There are three chilling stations working under this plant.
LOCATION: -
This plant is situated on the Pathankot road, Gurdaspur. It is two
kilometer away from Railway Station, Gurdaspur.
CAPACITY OF PLANT: -
39
The plant was designed to handle 60.000 liters per day of milk drying
and 10.000 liters per day as liquid supply. Since inception of the Plant
there was no change in the handling capacity until April 1997. Due to
good potentiality of milk in areas, efforts were always made to
enhance its handling capacity to 100.000 liters milk per day. Under the
guidance of Milk Federation Punjab, the Registrar, Cooperative
Societies Punjab, has sanctioned as sum of
Rs 140 crore from the co-operative Development Fund. These funds
are being utilized at the earliest. The loan amount should be
refundable in 5 years after moratorium period of 3 years. On expansion
the plant will handle 100,000 liters of milk per day. The registration
capacity will also increase to 1.5 lacs liters of milk per day.
40
MILK PLANT NETWORK
Amritsar
Bathinda
Bassi Pathana
Chandigarh
Ferozepur
Faridkot
Gurdaspur
Hushiarpur
JalandharLudhiana
Patiala
Ropar
Sangrur
MILK FEDS NETWORK
Milk fed has its milk union in many districts of Punjab. Their district
unions are: -
41
CONTROLLING AUTHORITIES: -
The Milk Plant Gurdaspur set up by Punjab Government but in 1966 the
controlled was passed on to Punjab Dairy Development Co-operation
and subsequently its management was passed to Milk Fed w.e.f. April
9, 1983. The Gurdaspur District Co-operative Milk Producer Union Ltd
was registered on April 28th. Union has started its business on July 1,
1988 with the complete control of Plant to the Union. Moreover all the
assets and liabilities of Punjab Government and Punjab Dairy
Development Co-operation at the Milk Plant Gurdaspur were
transferred to Union w.e.f. April 1, 1994.
The Union has an elected board and managing director is on
deputation from Milk Fed. The officers are in the cadre of deputation
from Milk Fed.
GOVERNMENT SUPPORT: -
Union finally functioned with share capital of Rs 10 lacs received from
government which was later on enhanced to Rs 103 lacs. Under the
operation flood, Milk Union, Gurdaspur has received
Plant and machinery, tanker and other assets on loan cum grant basis.
A loan was given by National Dairy Development Board amounting to
Rs 109.49 lacs (70% loan and 39% grant). In the year 1990 -91 unions
has taken Rs 53 lacs from Milk Fed as short term loan to meet its
current obligation. This year N.D.D.B. has given a loan of Rs 2.5 crore
to the Union. The union gets timely fund availability of working capital
loan.
42
MILK PROCUREMENT AT MILK PLANT: -
The procurement system of this Milk Plant is well organized. Milk
procurement is made through Milk Producers Co-operative Societies
which are spread over whole of the Gurdaspur. Under these societies,
there are milk producer members. These members are chosen by
village level societies from each village. These members choose a
secretary
who collect milk from milk producers and sell to the plant and earn
some percentage of commission. In November, 1998, there were
603 functioned societies having 32967 milk producer members. In
November, 1999, there were 623 functional societies having
41967 milk producers’ members holding membership of Milk Plant,
Gurdaspur and poured 1787634 kgs of milk.
In June 30, 2002 Milk Plant Gurdaspur has 738 functional societies out
of which 493 are working. While collection of milk, the fat contents of
milk are properly tested on order to check the quality of milk because
the price is paid according to fat contents. GERBER and MILKO Tests
are the tests applied to test protein and fat contents in milk.
43
CHILLING STATIONS: -
There are three chilling stations working under this plant. These are
Batala, Kahnuwan and Tugalwada.
The motive for opening these stations is to save the milk. The life of
the milk is only Five hours after it is collected. Some villages are more
away from Gurdaspur Plant and transportation times much higher than
this time. So these stations are opened to chill the collected milk so
that the life of milk be increased against five hours.
AIR / WATER POLLUTION CONTROL: -
The pollution created by boiler’s smoke and affluent discharge is
checked as per the norms of the Punjab Pollution Control Board,
necessary devices have been installed. With the start of these
equipments, the BOD of treated water (of treatment of water) being
discharged into Municipal Sewer is less than 30 i.e. well within norms.
The treated water is used for irrigation purpose on the land of Milk
Plant. Thus there is reduction of pumping of water from Earth Strata.
The result of this is 17, 00,000.
44
Chapter 4
Punjab’s pride: - Ghee, lassi,
panjiri, kheer…
45
Punjab’s pride: - Ghee, lassi, panjiri, kheer…
Punjab may be flopping on fronts like health, information technology
but its flavored Verka lassi, desi ghee; ice-cream, sweetened milk,
panjiri, paneer, curd, and kheer are doing very well in the national and
international market. Milk fed, state’s leading cooperative, known for
Verka brand in and outside the country has achieved 64 per cent
growth in the sale of lassi, 37 per cent in sweetened flavored milk, 31
per cent in ghee, 21 per cent in ice cream, 70 per cent in kheer and 39
per cent in paneer last year. Desi ghee and lassi have been
traditionally strong area of Punjab.
Milk fed, that has achieved overall growth of 21 per cent last year, is in
fact expecting big increase in the milk collection in winter this year.
Owing to this reason, it has already started looking for new markets in
Delhi and elsewhere to sell milk and its products.
46
Impressed by the performance of Milk fed, some of the leading
companies in milk business Yoplait group, second biggest fresh dairy
product company in the world, has approached it for long -term
partnership.
There has been 31.08 per cent growth in milk procurement in the first
fortnight of the May known as a lean period as far as procurement of
milk is concerned. During first 12 days of May, the average
procurement of milk was 8.83 lakh kg compared to 7.01 lakh kg of
corresponding period in the last year.
Amritsar, Gurdaspur, Patiala, Ludhiana, Ferozepur and Jalandhar
districts are doing very well with regard to the milk procurement.
Overall turnover of the Milk fed had gone up to Rs 918 crore by the end
of last financial year and it would cross Rs 1,000 crore at the end of
current year. Increase in the turnover has been to the extent of 20.9
per cent in 2009-10 compared to the previous fiscal year.
V.K. Singh, managing director, Milk fed, said the biggest challenge
before his organization was to find new markets to sell milk products.
Our plants can process milk up to 14 lakh kg per day but “we are
expecting milk procurement touching figure of 17 lakh kg during the
winter this year. Hence, we need new markets to sell milk and its
products”, he said.
Milk fed had given best price Rs 14.50 per kg cow milk and Rs 17.50
per kg for buffalo milk. “To keep dairy farmers and other milk
producers in the state motivated, we will not slash its price during the
flush season”, he said. Except Amritsar and Sangrur, all other milk
47
plants in cooperative sector were doing very well, he added. He said
Milk fed was in profit and would become a blue-chip organization in a
year or two.
“Efforts made by us in enhance milk production by supporting the
setting up new dairy farms has started giving dividends”, he said.
“We are supplying milk even in Srinagar local market and also looking
to develop market in north-east such as Assam to sell milk products
especially value added ones. There was a plan to set up a plant near
Delhi because that was a biggest consumer market. Areas in which
Milk fed is not showing promise is table butter that has registered a
negative growth of 11 per cent and internal and external sale of
skimmed milk that has registered a negative growth of 24 per cent.
There are also problems on human resources front because private
sector has been keeping eye on its professionals and luring them away
by offering higher pay packets. V.K. Singh said, “We would have to
adopt the corporate pattern to higher and retain best talented persons
in milk sector to compete with private sector”.
PRODUCTS
The “Verka” range:
Fresh Milk Long shelf life milk
(UHT)
DTM Skimmed Milk
Toned Double Toned Milk
Standard Toned Milk (Taaza)
Full Cream Cow Milk
48
Skimmed
Camel Milk
Fresh Milk Products Long Shelf Life Milk Products
Chaach Ghee
Lassi Cow Ghee
Dahi Table Butter
Paneer SMP
Shrikhand WMP
Icecream Cheese
Rasgulla Dairy Whitener
Flavored Milk White Butter
Mawa
Today Verka Milk Plant Gurdaspur provides liquid milk of four type’s
name
Toned
Double toned
Standard and Gold (Full cream) and
Various products like Ghee, Paneer table butter, chach, lassi,
shrikhand in the district of Gurdaspur and also other grid. Its sale
tetra packs milk throughout the Punjab.
The plant is managed and operated by will-qualified, competent and
experienced, managerial cadre and highly motivated work force to
provide highest quality of product and best of services to its esteemed
customers.
49
To further improve the efficiency and efficiency and effectiveness of
the plant performance, of Verka Milk Plant Gurdaspur.
OBJECTIVES
The primary concern of Verka Milk Plant Gurdaspur is to provide best
quality and safe products and services, achieved this quality objectives
of Verka Milk Plant Gurdaspur dairy are designed to
Meet a well defined needs use and purpose of costumer.
Satisfy customer’s expectation for good and safe milk and milk
products.
Comply with applicable national and international standard.
Make available milk and milk products at comparative price.
Ensuring implementation of quality management system.
Application ad adherence of HACCP principal for food safety.
Motivates employees for professional excellence and
participation.
50
Chapter 5
QUALITY POLICY
51
QUALITY POLICY
The Verka Milk Plant Gurdaspur believes that the delighted customer is
the only key for overall development of the organization
This is achieved by:-
Educating milk products for clean milk production.
Manufacturing and supplying milk and milk products and services
of consistent quality at comparative price.
Adoptive innovate and modern technologies and system.
Developing committed workforce.
Adoption of safety and environment friendly standards with help
of application of HACCP principals.
Quality
Verka Milk Plant Gurdaspur has got a sophisticated quality Control
Laboratory, which is equipped to carry out almost all the chemical and
bacteriological tests related with milk and milk products. The QC Lab
also carries quality tests for various packaging material, ingredients,
and chemicals used in Verka Milk Plant Gurdaspur. The service of the
quality control lab is also used for carrying our consumer awareness
programs like “Dudh ka Pani Ka Pani”. We also have facility for general
52
public for getting their milk or Ghee samples tested in our quality
control lab free of cost.
Engineering
The lifeline of Verka Milk Plant Gurdaspur i.e. steam, water and
refrigeration is provided and maintained by the Engineering section.
Apart from this section does regular maintenance both preventive and
corrective only. Considering the perishable nature of milk, the
engineering section has to be on its toes always.
The section is managed by will – qualified and experienced manpower,
which are at par with any professional organization.
53
Chapter 6
ORGANIZATIONAL CHART
54
ORGANIZATIONAL CHART
55
GENERAL MANAGER
56
GeneralManager
M.R.
InchargeStoreManager
Engineering
ManagerQualityAssurance
InchargePurchase
DeputyManagerP.A.
InchargeMarketing
ManagerMilkProcurement
ChillingCenters
LocalRoutes
Chemical Testing &Packing Material
MicrobiologicalTesting
Liquid MilkTesting
Boiler
Refrigeration
Electrical
Mechanical
Dy.ManagerGhee & Powder
Dy. ManagerPaneer & Dahi
Dy. ManagerLiquid & Milk
Dy. ManagerReception & Processing
G.M. is the topmost authority in particular milk plant. He is the
incharge of affairs of union in process provides due price to milk
producers and assures good quality to the consumers at the most
reasonable price.
G.M. who is duly assisted by mangers of various line functional
departments plus staff to carry out his task and any problem related to
different departments are dealt by him.
The name time periods of the G.M. are as follows: -
1. Sh. G. S Dhami 1980 — 84
2. Dr. Virban Singh 1984 — 89
3. S. Surjit Singh Bhullar 1989 — 90
4. Sh. K.K. Bali 11-06-90 to 04-10-90
5. S. Amrik Singh Dec 1990 to Dec 1993
6. Sh. G.S Dhari Dec. 1993 — 94
7. S. Amrik Singh 01-09-1994 — 98
8. Sh. S.K. Mahajan 13-09-94 — 98
9. S. Amarjit Singh 1998-2002 — 31-03-2002
10. S.Kuldeep Singh 01-04-2002 – till now
As far as the organizational structure is concerned we can say that the
federation is a state Level Apex co-operative Organization owned by its
member unions each of which, in turn, is owned the dairy co-operative
societies in its area of operation which are themselves owned by
farmer members.
The federation has a board of directors which has overall responsibility
for the planning policies, financial resource mobilization and
management, member and public relations as well as liaison with
57
agencies of the state and central Government, financing institutions
etc. The federation has chief Executive designed as Managing Director.
It is a vertically integrated structure that established a direct linkage
between those who produce the milk and those who consume it.
Federation provides services and support to union. Marketing with in
and outside State. Liaison with government and NGO agencies,
mobilization of resources and co-ordination planning programmes or
project.
58
Chapter 7
Human Resource Development
59
Human Resource Development
Verka Milk Plant Gurdaspur has always considered its staff member as
an asset. Various programs are run on continuous basis for keeping the
morale of employees high. Without the positive support of the
employees, the success story of Verka Milk Plant Gurdaspur would not
have been possible. Yearly Get-together of all officers and employees
is one of the most important events of Verka Milk Plant Gurdaspur.
For the last few years, more emphasis is being given on employees
‘training in the field of Attitude, Customer Relations, Positive Thinking,
Time Management, Stress Management and Team Building etc; apart
from technical subjects. Employees are being made aware of such
subjects either by nominating them to various training organizations
and workshops and seminars. Also experts are being invited to conduct
in house workshops and seminars. Verka Milk Plant Gurdaspur has h
60
HRD cell also, which circulate good and readable articles to employees
for self-development.
Chapter 8
SWOT Analysis
61
SWOT ANALYSIS
STRENGTH: -
1. Minimum interference from top management in day to day
working.
2. Qualified, experienced and devoted workforce.
3. Brand name – VERKA.
4. Direct contacts with milk producers.
5. Own cattle feed plant and fodder seed grading station for
supplying certified fodder seeds.
6. Technical and financial guidance and support from Milk Fed Head
Office Chandigarh as well as National Dairy Development Dairy
Board.
7. ISO and HACCP certification.
8. Surplus created capacities.
9. Good corporate governance and socially responsible
organization.
10. Quality of available milk is very good
WEAKNESS: -
1.Situated between two rivers RAVI and BEAS and prone to
floods and sometimes havoc is caused which ultimately
affects the cattle population in the crease.
2.Indo Pak Border is near to Gurdaspur District at which
situation always disturbing local population which ultimately
affects cattle rearing by the people.
62
3.Highly completive markets.
4.Financial position of plant is very weak from many years.
5.Sufficient working capital is not available.
6.Stagnation in milk procurement.
OPPORTUNITIES: -
1.Himachal Pradesh and J & K area is to be developed from city
Supply Milk and Milk Products.
2.Milk Chilling Centre Fatehgarh Churian falling in District
Gurdaspur, if handed over to Gurdaspur Union Milk, procurement
can be increased.
3.Veterinary health care and breeding facilities is to be increased
for improving genetic milk yielding characters of animals.
4.Feasibility of home delivery system for city supply milk to be
exposed.
5.Diversification of land use for improving profits.
6.Innovative energy saving measures is required to bring down the
cost of production and improve profitability.
THREATS: -
1.Border tensions and river floods.
2.Increasing salary bills as compared to turnover.
3.WTO agreements.
63
4.Non adoption of dairy farming as a side business by formers.
5.Higher cost of raw materials as compared to realization.
6.Continuous increase in higher rates of raw materials as
compared to comparative increase in the price realization of milk
products.
7.Lack of autonomy in functioning.
Chapter 9
PROFIT AND LOSS ACCOUNT
64
PROFIT AND LOSS ACCOUNT
Profit and loss account is depicted from the Balance Sheet. According to this account, the company comes to know about the real position of the company by knowing that whether the company has gained or loss. As the checking of this account reveals that profit and loss account for the year 31.03.2009, 31.03.2010 was misrepresentation of accounts and depicts the position which is not correct because the plant authorities had shown appropriation loss account of Rs 49,69,96,162.62/- on 31.03.2009, Rs 53,41,04,641.63/- on 31.03.2010 in Balance Sheet by preparing separate P & L appropriation account by the union when provision of this expenses which were increased from 2009-2010 was not made. Plant concealed net loss for the concerned years to the tune of Rs 1, 79,01,905.58/- and Rs 1,45,36,884.77/- for 31.03.2009 and 31.03.2010 respectively by not showing as net loss for that year.
Besides many reasons the main reason for loss as explained by the plant authorities is running the plant in under capacity resulting high
65
production cost and fixed cost, low margin between purchase/production price and sale price does not cover the various expenditures which are incurred in procurement.
MANUFACTURING, TRADING &PROFIT & LOSS ACCOUNT OF2009 - 2010
Previous year(amount)
Particulars Current year(amount)
Previous year(amount)
Particulars Current year(amount)
7,13,42,395.80 Opening stock
8,12,58,066.00
36,81,24,938.64
Sale of milk&milk products
37,55,13,351.17
28,66,99,619.42
Purchase of milk& milk products
31,64,46,682.57
32,64,995.00 Misc. income 10332870.49
2,36,48,275.32 ProcurementExpenses
2,72,95,223.18
8,12,58,066.00
Closing stock 10,35,47,007.00
57,90,158.68 Processing expenses
71,01,192.68
66
2,28,33,697.78 Production expenses
2,44,74,667.01
2,28,33,697.78 Packing expenses
1,79,69,644.70
1,18,69,119.60 Store/Purcha--se/ Engg expenses
1,37,25,203.34
4,14,73,523.80 Admn/accounts expenses
2,59,04,726.79
2,64,46,257.40
Sale on Consignment Basis
3,01,74,528.20
2,557.00 Service Tax 4,202.00
97,77,021.75 Distribution expenses
99,37,265.84 1,79,01,905.58
Loss for theYear
1,45,36,884.77
27,33,803.65 Depreciation 27,11,437.89
49,69,96,162.62
53,41,04,641.63
49,69,96,162.62
53,41,04,641.63
67
Chapter 10
THE BALANCE SHEET OF 2008-09 AND 2009-10
68
THE BALANCE SHEET OF 2008-09
Liabilities Year 2008-09 (amount)
Assets Year 2008-09 (amount)
Share capital 1,32,76,100.00 Fixed assets 9,93,20,509.34
Reserves and surplus
8,04,28,468.37 Investments 1,55,00,100.00
Secured loans 3,07,84,483.00 Current assets 11,04,14,541.25
Current liabilities and provision
31,59,48,287.93 Stock in transit
Hare stabilization fund
1,54,775.00 Accumulated losses
19,37,34,246.13
Appropriate losses
37,20,812.00
Loss of the year 1,79,01,905.58
Total 44,05,92,114.30 44,05,92,114.30
69
THE BALANCE SHEET OF 2009-10
Liabilities Year 2009 – 10 (amount)
Assets Year 2009 – 10 (amount)
Share capital 1,37,67,100.00 Fixed assets 10,225,97,23.94
Reserves and surplus
9,80,11,843.34 Investments 1,55,00,100.00
Secured loans 3,33,31,243.00 Current assets 12,38,81,995.71
Current liabilities and provision
32,63,82,079.85 Stock in transit -
Hare stabilization fund
43,402.00 Accumulated losses
21,53,56,963.71
Appropriate losses
Loss of the year
Total 47,15,35,668.19 47,15,35,668.19
70
Chapter 11
Comparative Balance Sheet of 2008-09 & 2009 - 10
71
COMPARATIVE BALANCE SHEET
Assets
2009 2010 Increase/
decrease amount
Percentag
e
Fixed assets 9,93,20,509.3
4
10,22,59,723.
94
(+)29,39,214.6 2.9 %
Current assets 11,04,14,541.
25
12,38,81,995.
77
(+)1,34,67,454.5
2
12.1 %
Investments 1,55,00,100.0
0
1,55,00,100.0
0
Nil 0 %
Accumulated
losses
19,37,34,246.
13
21,53,56,963.
71
(+)2,16,22,717.5
8
11.1 %
Loss of the
year
1,79,01,905.5
8
1,45,36,884.7
7
(-)33,65,020.81 (-)18.7%
Appropriation
Loss
37, 20,812.00 Nil nil nil
Total assets 44,05,92,114.
30
47,15,35,668.
19
(+)30943553.89 7.0 %
Liabilities &
Capital
2009 2010 Increase/
decrease amount
Percentag
e
Share capital 1,32,76,100.0
0
1,37,67,100.0
0
(+)4,91,000.00 3.6 %
Reserves and
surplus
8,04,28,468.3
7
9,80,11,843.3
4
(+)1,75,83,374.9
7
21.8 %
Secured loans 3,07,84,483.0
0
3,33,31,243.0
0
(+)25,46,760.00 8.2 %
Current
liabilities &
31,59,48,287.
93
32,63,82,079.
85
(+)1,04,33,791.9
2
3.3 %
72
provisions
Share
stabilization
Fund
1,54,775.00 43,402.00 (-)1,11,373.00 71.9 %
Total 44,05,92,114.
3
471535668.19 (+)30943553.89 7.0 %
The comparative balance sheet of the company reveals that during 2009, there is an increase in fixed assets of Rs 9,93,20,509.34 and there is an increase in current assets of Rs 11,04,14,541.25 and there is an increase in total assets by 7.9 %. Reserve and surplus increased from Rs 8,04,28,468.37 to Rs 9,80,11,843.34 i.e. 21.8 % .
Current liabilities and provision are decreased from 44, 05, 92,114.3 to 37, 35, 23, 824.85. Overall position of the company is satisfactory.
73
Chapter 12
Data Interpretation
74
Comparative Analysis of Assets in Data Interpretation 2008-09 to 2009-10
Q 1 Change in Fixed Assets in 2008-09 to 2009-10
75
Q 2 Change in Current Assets in 2008-09 to 2009 -10
76
Q 3 Change in Investments in 2008-09 to 2009-10
77
Q 4 Change in Accumulated losses in 2008-09 to 2009-10
78
Q 5 Change in Appropriate loss of the year in 2008-09 to 2009-10
79
Q 6 Total change in Total Assets in 2008-09 to 2009-10
80
Chapter 13
Suggestions
81
Suggestions:
1. Verka milk plant should concentrate more on marketing strategies.
2. Expand themselves to other states also. 3. Feasibility of home delivery system for city supply milk to be exposed
4. Innovative energy saving measures is required to bring down the cost of production and improve profitability.
5. try to create retained earning reserve and utilize it for its own development.
6. Bring more varieties in its product range.
82
Chapter 14
Bibliography
83
Bibliography
Pandey I.M., financial management, Ninth addition, UBS
Publication New Delhi.
Mahant R.N., Management Accounting, Sahitya Bhawan
Publications, Agra
Van Horn, (2009), Financial Management and Policy,12th edition,
Publisher Dorling Kindersley India ltd.
Horne Wwachonicz, J.R.Bhaduri (2009), Fundamentals and
Financial management, 12th edition, Pearson publisher.
Jain. P.K. Financial Management,5th edition, Publisher Mc grew
hill companies.
Income statement and financial statement of 2009-10 as
obtained from Gurdaspur Dairy.
Financial dailies.
Economic Times
Business Standard
Business Magazines
Business India
Business World
Internet Portals:
www.verkadairy.com
84
Chapter 15
Appendix
86
Appendix
THE BALANCE SHEET OF2009-2010
Previous year (amount)5,00,00,000.00
Liabilities Current year (amount)5,00,00,000.00
Previous year (amount)
Assets Current year (amount)
1,32,76,100.00
Share capital
1,37,67,100.00
9,93,20,509.34
Fixed assets 10,225,97,23.94
8,04,28,468.37
Reserves and surplus
9,80,11,843.34
1,55,00,100.00
Investments 1,55,00,100.00
3,07,84,483.00
Secured loans
3,33,31,243.00
11,04,14,541.25
Current assets
12,38,81,995.71
31,59,48,287.93
Current liabilities and provision
32,63,82,079.85
Stock in transit
-
1,54,775.00 Share stabilization fund
43,402.00 19,37,34,246.13
Accumulated losses
21,53,56,963.71
37,20,812.00 Appropriate losses
-
1,79,01,905.58
Loss of the year
1,45,36,884.77
44,05,92,114.30
47,15,35,668.19
44,05,92,114.30
47,15,35,668.19
87
COMPARATIVE BALANCE SHEET
Assets2009 2010 Increase/
decrease amountPercentage
Fixed assets 9,93,20,509.34
10,22,59,723.94
(+)29,39,214.6 2.9 %
Current assets 11,04,14,541.25
12,38,81,995.77
(+)1,34,67,454.52
12.1 %
Investments 1,55,00,100.00
1,55,00,100.00
Nil 0 %
Accumulated losses
19,37,34,246.13
21,53,56,963.71
(+)2,16,22,717.58
11.1 %
Appropriate loss of the year
1,79,01,905.58
1,45,36,884.77
(-)33,65,020.81 (-)18.7%
Total assets 43,68,71,302.3
47,15,35,668.19
(+)3,46,64,365.89
7.9 %
Liabilities & Capital
2009 2010 Increase/decrease amount
Percentage
Share capital 1,32,76,100.00
1,37,67,100.00
(+)4,91,000.00 3.6 %
Reserves and surplus
8,04,28,468.37
9,80,11,843.34
(+)1,75,83,374.97
21.8 %
Secured loans 3,07,84,483.00
3,33,31,243.00
(+)25,46,760.00 8.2 %
Current liabilities & provisions
31,59,48,287.93
32,63,82,079.85
(+)1,04,33,791.92
3.3 %
Share stabilization Fund
1,54,775.00 43,402.00 (-)1,11,373.00 71.9 %
Total 44,05,92,114.3
37,35,23,824.85
(-)6,70,68,289.45 15.2 %
88
MANUFACTURING, TRADING &PROFIT & LOSS ACCOUNT OF2009 - 2010
Previous year(amount)
Particulars Current year(amount)
Previous year(amount)
Particulars Current year(amount)
7,13,42,395.80 Opening stock
8,12,58,066.00
36,81,24,938.64
Sale of milk&milk products
37,55,13,351.17
28,66,99,619.42
Purchase of milk& milk products
31,64,46,682.57
32,64,995.00 Misc. income 10332870.49
2,36,48,275.32 ProcurementExpenses
2,72,95,223.18
8,12,58,066.00
Closing stock 10,35,47,007.00
57,90,158.68 Processing expenses
71,01,192.68
2,28,33,697.78 Production expenses
2,44,74,667.01
2,28,33,697.78 Packing expenses
1,79,69,644.70
1,18,69,119.60 Store/Purcha--se/ Engg expenses
1,37,25,203.34
4,14,73,523.80 Admn/accounts expenses
2,59,04,726.79
2,64,46,257.40
Sale on Consignment Basis
3,01,74,528.20
2,557.00 Service Tax 4,202.00
97,77,021.75 Distribution expenses
99,37,265.84 1,79,01,905.58
Loss for theYear
1,45,36,884.77
27,33,803.65 Depreciation 27,11,437.89
49,69,96,162.62
53,41,04,641.63
49,69,96,162.62
53,41,04,641.63
89
Chapter 17
Project Synopsis
90
91