pradeshik cooperative dairy federation...
TRANSCRIPT
Chapter-II
PRADESHIK COOPERATIVE DAIRY FEDERATION – AN OVERVIEW
Development of Dairy in Uttar Pradesh has it own history.
Firstly, milk union was formed in Allahabad in the year 1917. Its
name was kept Kattra cooperative Dairy Committee, Allahabad.
With the establishment of this Committee, Dairy business started
formally in the state. Again after two decade in 1938 in Lucknow
Dairy Products Cooperative Union was established. These two
Cooperative Committee affected the other part of the state.
Therefore, in future Dairy Union were established respectively in
Allahabad (1941), Varanasi (1947), Kanput (1948), Haldwani (1949)
and Meerut (1950). For bringing it at higher level in state no
attempts were done for the Cooperative in Dairy business till 50Th
Decade1. During the 1st and 2nd Five Year Plans Push theorization
plant were established in all Five Dairy Federation except in
Haldwani (Nainital). One more dairy federation was established in
Halmoda 1954. It is clear form this that no special importance was
given to Dairy Federation. Till the end of 2nd Five Year Plan (1961)
from the beginning and till now only Rs. 72.34 lakh was sanctioned
to dairy federation as economic subsidiaries. Thus, Cooperative
Union was established in April 1962 in state for making it at higher
level to strengthen many Dairy Unions. Its name was kept
„Pradeshik Cooperative Dairy Federation‟ keeping in mind the aim to
remove the middlemen from transcription, between productions and
poor villagers economically. And in this way for developing Dairy
Union into powerful subsidiary industry attempts were made in
Uttar Pradesh on state level. Firstly, it worked as an technical
advisory institution.
In new plan of Cooperative Dairy Industry was introduced in
the year 1970-71. The liability of this plan was handed over to
Pradeshik cooperative Dairy Federation. Under this plan Meerut
and Varanasi two dairies respectively of 1-1 lakh liter milk handling
capacity and two animal food factories of 100-100 metric tons
capacity were established. Along with Jurssy cow reproduction unit
was also established in Raibarelly District.
Development programmes started with the help f international
and state Government in 1975. Under this with the economic help
of F.F.H.C. Britan an Uttar Pradesh Government Cooperative Dairy
Federation started a project-“Shankar high bride project in 1977 in
moradabad”. Its main objective is to improve the breed of local cows
and increase the milk production capacity. Pradeshik Cooperative
Dairy Federation is pioneer organization in milk production. While
the clear and rigid objective of P.C.D.F. was to remove the
middlemen from the transaction between producers and consumer.
It main objectives are to increase the production of milk and by-
product of milk2.
In 1976 State Government established an Diary Development
Department and applied an Uttar Pradesh Dairy Act 1976 for
development and importance of Dairy Development Programmes.
Dairy Commissioners post was created. With other authorities
Cooperative Committee Act and under this act prescribed rules
relating to Dairy Cooperative authorities of registrar were given to
Dairy Commissioner. Along with this he was appointed as Head of
the Department and Secretary of State Dairy Council, Dairy
Development got special speed in its programmes with these
facilities in state.
With in a short period of 2 year dairy development has
established 10 centers of 4 thousand liter milk handling capacity
and 2 centers of 2 thousand liter handling capacity daily. This way
total 12 cold storage have been established. These centers re
established in Raebareli, Unnao, Bijanaur, Farrukhabad, Sitapur,
Pratapagadh, Jounpur, Azamgarh, Jalaun, Shahjahandpur, Kot
Dwar, Pittaurghadh respectively. Among these 10 old storage have
been established with Rs. 80 lakh financial help of National
Cooperative Delvelopment Cooperation. Again in 1978 Dairy firm
started in Merrut and in 1979 it stared in Varanasi. After it again in
1979 under Dairy plan Faizabad, a cold storage center was
established there have capacity of 20 thousand liter Dairy handling
per day at cost of 69.59 lakh rupee.
Pradeshik Cooperative Dairy Federation was set up at the
state level as apex body for launching „Operation Flood‟. The
Government of Uttar Pradesh also extended a help hand in setting
up dairies in different districts of U.P. recently Pradeshik
Cooperative Dairy Federation has come up as a governing body for
all the dairies of the state3. The objective of Operation Flood is to
remove, the middlemen between the producers and consumers by
procurement of the milk directly by the producers and consumers
by procurement of the milk directly by the producers through
village co-operative societies. To increase the production of the milk
from milking animals by providing the inputs to the producers. To
arrange the supply of liquid milk in the major cities of U.P.
The aim of 2nd Operation Flood is to run Dairy Industry in 28
districts of the state and to develop it and make it stable on the
basis of Annand pattern and to run that on the Government
Principles. This plan was for 6 year period but it was stopped before
one year in September, 1987. Operation Flood 3rd plan also started.
Its liability is also handed over to this federation. Operation Flood
3rd programme is being completed with the help of Financial
Cooperation of National Development Board4. In this way, it is clear
that Pradeshik Cooperative Dairy Federation has implemented
many programmes after its appearance and it has been hoped that,
this federation will make an effort for the development of Dairy
business in future also.
Pradeshik Cooperative Dairy Federation was set up at the
state level as apex body for launching „Operation Flood‟. The
Government of Uttar Pradesh also extended a help hand in setting
up dairies in different districts of U.P. recently Pradeshik
Cooperative Dairy Federation has come up as a governing body for
all the dairies of the state3. The objective of Operation Flood is to
remove, the middlemen between the producers and consumers by
procurement of the milk directly by the producers through village
co-operative societies. To increase the production of the milk form
milking animals by providing the inputs to the producers. To
arrange the supply of liquid milk in the major cities of U.P.
The aim of 2nd Operation Flood is to run Dairy Industry in 28
districts of the state and to develop it and make it stable o the basis
of Annand pattern and to run that on the Government Principles.
This plan was for 6 years period but it was stopped before one year
in September, 1987. Operation Flood 3rd plan also started. Its
liability is also handed over to this federation. Operation Flood 3rd
programme is being completed with the help of Financial
Cooperation of National Development Board4. In this way, it is clear
that Pradeshik Cooperative Dairy Federation has implemented
many programmes after its appearance and it has been hoped that,
this federation will make an effort for the development of Dairy
business in future also.
Objectives of Pradeshik Cooperative Dairy Federation:
In Uttar Pradesh Dairy Industry is in the form of subsidiary
industry. The farmer of this state adopts this business also along
with agriculture. Therefore, this federation is established in this
state while keeping in view the development of dairy industry. The
main objective of this institution is to give new dimensions to
Operation Flood just like green revolution with the different plans
and programmers of dairy development. In this way following are
the main objectives of federation.
i. Capturing a domination share of the urban milk
market, hither to serve by a multitude of small milk
vendors.
ii. Creating a procurement network to link numerous co-
operative producer societies in different milk shed areas
to the organized urban dairy industry.
iii. Upgrading the milk production of Indian bovine stock
through a programme of cross-breeding, veterinary
services and auxiliary activities.
iv. To facilitate transport, storage and distribution of milk
and milk product.
v. To develop dairy business and industry.
vi. To cooperate in increasing the dairy production.
vii. To facilitate different types of training at rural level for
encouraging dairy industry.
viii. To determined supply of liquid in main of state.
In this way, it is clear that federation has elaborated its
objectives according to the recent time. It should be known that at
the time of establishment its aim was to provide different kinds of
technical help to Dairy5.
Functions of Federation:
It is clear that federation wants to bring Operation Flood just
like Green Revolution through the medium of different plans and
programmes of Federation Dairy Development in state. For this
federation functions are:
i. To establish Primary Dairy Committee and to earn milk
product from it.
ii. To invest in livestock improvement and technique from milk
product better quantity.
iii. To work on different expansion and animal hospital,
artificial impregnation.
iv. To provide finance for purchasing milk giving cattle.
v. To Prepare and implement programmes relating to
development of Sadhan Chara.
vi. To maintain quality of milk and milk products by facilitating
quality control.
vii. To create processing and marketing resources for
facilitating. Pasteurized and qualitative milk marketing in
cities.
viii. To facilitate training at different level for making sound
dairy industry etc.
Along with above functions federation prepares an outline by
future programmes. It clears that this institution is for public
welfare and dynamical. Recently, federation has prepared a future
plan under which the following works have been fixed.
i. Soundness is Dairy Committee under Cooperative
Development Plan.
ii. To expand intensive animal plan and natural animal
procreation plan.
iii. Implementation of intensive fooder development
programmes.
iv. To encourage farmers for producing silk warms.
v. Soundness Jurssy animals Raebareli and soundness of
Himikrit Viar Bank in Moradabad.
vi. To produce developed calves under the foetus
transplantation in indigenous breed.
vii. Coordination for successful implementation of technical
machineries.
viii. Plan for involving two new vaccinations H.S., V.O. for
animals under special component plan.
ix. Agmark proposal for table butter.
x. Plan for selling liquid milk per day 10 lakh liters in coming
5 years.
xi. Modernization of central laboratory.
xii. Women development programme for increasing the
participation of women‟s in Dairy Cooperatives.
xiii. Monitoring, analyzing, technique mission.
xiv. Implementations and suggestions for all level of works.
xv. Development of publicity material, do direct video films.
xvi. Market survey for consumer profile and market share
according to market demand brand relating to coffee-mix,
malted food vanaspati sale.
xvii. Development of products for baby milk cereal food. Lactoj,
hydrolaijed milk and diabetes paritents ice cream etc.
It is clear that Pradeshik Cooperative Dairy Federation is
bringing both quality and expansion of its working area and trying
to provide more and more satisfaction to customers according to the
view of modern marketing. As through federation is mainly attached
to dairy business, but it is suitable also for cooperation in
development of rural economy.
Organizational structure of Pradeshik Cooperative Dairy Federation:
The world „organization‟ originates from the world „organism‟
which means a structure with parts so integrated that their relation
to each other is governed by their relation to the whole. It also
means a system with parts which work together, or a system with
parts dependents upon each other. Organization is the function
upon which the whole structure of management is built.
Organization is related with developing a framework where the total
work is divided into manageable components in order to facilitate
the achievement of objectives or goal. Thus, organization is the
structure or mechanism (machinery) that enables living things to
work together6.
“Organization is the process of identifying and grouping the
work to be performed, defining and delegating responsibility and
authority and establishing relationships for the purpose of enabling
people to work most effectively together in accomplishing
objectives.”
“The establishment of authority relationships with provision
for co-ordination between them, both vertically and horizontally in
the enterprise structure”.
“Organizing is the establishing of effective behavioral
relationship among persons so that they may work together
efficiently and gain personal satisfaction in doing selected tasks
under gives environmental conditions from the purpose of achieving
some goal or objectives7.
It is thus, obvious that organization is a fundamental concept
of management. It is a tool with the help of which pre-determined
goats are achieved. It encompasses all cooperative efforts based on
structural relationships. Organization is not an end it itself. It is a
framework of relationship among the individuals and the positions
the individuals occupy.
Better organization is a base of better management. An
organization is only a source through which manager direct, control
and coordinates its subordinates. Hence, organization increases the
capacity of management. Easy in-delegating authority encourages
human behaviors, encourages specialization, encourages creativity.
Increases moral and this way, provides smoothness in achieving
common goal by increasing efficiency.
The organization structure is also viewed differently by various
authors. Some regard it is a network of relationships, a blue-print
of how the management will like the various functions and activities
to be assigned and connected together. An organization structure
consists of various positions arranged in a hierarchy with a clear
definition of the authority and responsibility associated with each of
these. An organization cannot serve certain specifics purpose or
goals unless some positions are placed above other and given
authority to bind them by their decisions. In fact an organization
structure quite often defined as a structure of authority-
responsibility relationships. An organization structure, it emerges
that an organization is a structure of positions arranged in a
hierarchy for the pursuit of common objectives through
specialization and division of work8.
“Organization structure deals with the overall organizational
arrangements in an enterprise”. It gives “the pattern around which
the detailed administrative relationships should be woven.”
(i) By organization structure we mean the pattern of
network of relationships between the various positions
and the position-holders.”
(ii) The organization structure of the business enterprise is
the basic framework within the executives decisions
making behavior takes place9.”
There is no single best organization structure which could be
considered suitable for all enterprises. The most appropriates
structure depends on different factors in a given situation for a
given enterprises. The types of organization structure may also be
termed as the types of organization. There are five popular types of
organization or organization structure. Like line organization,
functional organization, line and staff organization and committee
organization.
1. Line Organization:
It is the simplest and oldest types of organization. It assumes
direct straight line responsibility and control from the general
manager to the plant manager, to superintendent, to foremen and
to the workers. Line organization has frequently been referred to as
military organization. It is that pattern of organization structure
where authority flows directly from the top to bottom through
various levels10.
There is two types of line organization:
(i) Pure Line Organization:
Under pure line organization the workmen in this type of
organization all perform the same type of work or task. Whatever
departmental divisions, are made, they are made merely for effective
and convenient supervision and management.
(ii) Departmental Line Organization:
Departmental line Organization is one. “In which the
enterprise is divided into departments that, as a role, are not alike
in functions to be performed although some of the departments
might be essentially alike and divided merely to facilitate control.11”
Staff Functional Organization:
Staff organization as “a relationship in an organization
position where an incumbent‟s task is to give some person advice or
control”. The nature of staff relationship is purely advisory. Staff
provides advice, information and assistance to the line manager,
who may accept it or note. The functional organization is based
upon the existence of functional authority in the organization. It is
established by grouping activities of the enterprise into certain
major functional departments. Under this system, the whole task of
management and direction of subordinates is divided according to
the type of work involved, and thus, the scope of the work is kept
limited but the area of authority is left unlimited.
Functional organization refers to the organization which is
divided into a number of functions such as finance, production,
sales, personnel, office and research and development and each of
the functions are performed by as axpert12.
Line and Staff Organization:
The line system concentrates control too much; the functional
plan divides it too much. The need was, therefore, for a system that
will strike a happy balance between the two. This need was fulfilled
by t he line and staff system of organization. Under this system,
the staff organization does not exist independently, but a body of
experts is employed more or less permanently to assist the line
officials. Thus, staff makes investigations, collects information,
chalks out plans and prepares schemes. The line officials select the
best scheme and gives instructions accordingly.
“Line and staff organization came into being as a result of
inability of the departmental managers to investigate, think and
plan at the same time, as they were performing the ordinary tasks
of production and selling. A clear demarcation between „thinking‟
and doing the staff being the thinkers‟ and the line being the
doers13.
Committee Organization:
Some authorities take committee organization as one of the
types of organization, but it is not wholly correct. As a matter of
fact, it is supplementary to the line or line and staff types of
organization. “A Committee consists of a group of people specially
designated to perform some administrative acts. It functions only as
a group and requires the free exchange of ideas among its
members.”
The need for Committee arises from the fact that one
individual is not capable of handling all the complex problems
effectively, especially in a big organization. He has to take the help
of other in understanding and solving the problems. It has been
rightly pointed out that “A Committee is a tool for the development
of ideas and recommendations of policy and procedure. It is a
means whereby ideas can be pooled and offered for criticism. It is
the strong right arm of a tactful administrator who realizes the
importance of getting his people to work to ether in the solution of
their own problems14”.
Establishment of any special form of organization depends
upon its objectives and size of organization, performance of
directions in institutions, difficulties of managerial work, social and
human needs, departmentation in organization, policies of
managers, efficiencies and capacity of higher manager, and
competitive situations size of market, customs and traditions, post
equality, expansion of control etc. Pradeshik Cooperative Dairy
Federation organization structure is a mixed organization structure.
In Pradeshik Cooperative Dairy Federation one side functional
organization structure is adopted. This statement will be cleared by
figure 2.1. As far as it is related to Cooperative Dairy Federation its
functions execution is under the control of administration of Uttar
Pradesh, Agriculture and Cooperative Ministry. Its head office is
established in the capital of Uttar Pradesh that is Lucknow.
Federation Management and administration work is done from
Lucknow. Flow of both horizontal and vertical organization
structure is present in federation. There is an administrative
committee at high level in organization. Under which chairman,
Managing Director, Chief General Manager stand respectively. They
cooperate Chief General Manager in different departmental
managers. Here we present a brief analysis of Pedration
Organization structure.
Figure 2.1: Organization Structure of P.C.D.F.
Board of Directors/Administrative Committee
Chairman Administrator
Managing Director
Chief General Manager
Divisional heads
(Special Programmes) Managers
Manager
administr
ation
Manage
r
Produc
er
Marketi
Manage
r
Finance
Accoun
ts
Manage
r
Quality
Control
Manage
r
Procure
ment
Project
Engine
ering
Operati
on
Service
Divisio
n
Inspection Special Projects Society Training R& D
Pradeshik Cooperative Dairy Federation has ten divisions. Every
division has managers and who are responsible to General
Manager, General Manager of every division are responsible to Chief
General Manager who is in turn responsible to Managing Director.
1. Administrative Committee/Board of Director:
According to company Act sec. 2(13) “Director means any
person occupying the position of a director, by whatever name
called”.
Company Act Sec. 303. “Any person in accordance with whom
instructions the board of directors of a Company is
accustomed to act shall be deemed to be a director of a
company.
According to Sec. 252 (3) “The directors of Company
collectively are referred to in the Act as the board of Director or
Board15.”
Administrative Committee is the supreme institutions.
Through this Committee Board of directions are organized. This
board of directors prepares the policies at higher level and
performer of applying function in the institutions. In this way,
Federations Board of directors works for General Managers,
direction and control. On the basis of 2000-01 Annual Report there
is one Chairman and 8 members in Board of Directors for the help
of Chairman one of the member of the member is made as Vice-
Chairman, Generally Ministry level person are appointed as
Chairman post. In this way for Vice-Chairman Post Agriculture
Production Commissioner is appointed. Member appointed for
Board of Directors are appointed on the following basis.
Dairy Secretary Development Uttar Pradesh, Government,
Lucknow.
Producers Co-operative Dairy Union Ltd. Varanasi.
Chairman Dairy Producers Co-operative Union Ltd. Varanasi.
Chairman, Bullanadha City Dairy Producer Co-operative
Union Ltd.
Resident Representative National Dairy Development Board,
New Delhi.
Programme Co-operative, N.D.D.V., P.C.D.F. Ltd. Lucknow.
Managing Director, P.C.D.F. 28 Park Road, Lucknow.
In Board of Directors Chairman is the administrator head.
Under chairman only all administrative policies ascertained and
programmes are prepared on state level only. Not only this, but also
the chairman facilitates for better control16.
Managing Director:
According to company Act. See. 2(26) “Managing Director a
“director who, by virtue of an agreement with the Company or
resolution passed by the company in general meeting or by its
Board of Director or by virtue of its Memorandum or Article of
Association is entrusted with special powers of management which
would not otherwise be exercisable by him and include a director
occupying the position of a managing directors, by which ever name
called.”
Thus, it is clear that a managing director of a company is one
of the directors who is entrusted with substantial powers of
management which he wouldn‟t ordinarily be exercising as a
director. A managing director service personnel of the company. He
is to act under the direction, supervision and control of the Board of
Directors17.
Therefore, managing director is an important person of any
institution who takes important decisions for the interest of
institutions. Under Pradeshik Cooperative Dairy Federation.
Organization structure managing director works under chairman.
He performs only that works which are given him by the Board of
Directors.
3. Chief General Manager:
Chief General Manager stand on third position in Pradeshik
Cooperative Dairy Federation organization structure. It means that
he is liable for management. All department managers are under
his direct control. Chief General manager performs as a director
and controller of all departmental managers.
(a) Administration: Administrative general manager is liable or
administrative work of a federation. Two departments are
under General Manager. Firstly- Administrative, Secondly –
Staffing. In this way he applies administrative decisions and
programmes and lastly keeps control on administrative
decisions and programmes and lastly keeps control on
administrative work. Along with this, directs selection of
employees, training and etc. administrative works.
(b) Finance: General Manager (finance) plans for financial
work, direct and control. Three departments are under
General Manager (Finance) (i) Finance Manager, (ii) Payment
Communication and (iii) Account Manager. In this way,
whole responsibility of finance is in the hands of Finance
General Manager.
(c) Procurement and Technical Inputs: This manager is liable
for plans relating to Dairy procurement and technical inputs
and direction and implementation in federation. Along with
this manager has technical inputs responsibility. Two
department are under this, the manager – Dairy
Procurement and Farmer Organization and Technical
Inputs.
(d) Operation: This manager is responsible for production plan,
monitoring and controlling. Two departments are under
General Operation Manager (i) Production and Monitoring
Plan and (ii) SMG (State Milk Grid) and NMG (Nation Milk
Grid) Supply Plan.
(e) Quality Assurance: This charger also works under Chief
General Manager like other General Manager. Its work is
related to control quality of products. It main work is to
control quality of produce for satisfaction of customers.
(f) Marketing: Marketing General Manager is also under Chief
General Manager. Its work is related to marketing planning
and implementations. Two departments are under
marketing (i) Dairy Products Marketing and Monitoring and
(ii) Liquid Dairy Marketing and Monitoring.
(g) Management Service Division (MSD): This manager also
works under Chief General Manager like other managers.
Two departments are under it (i) Cooperative Planning and
(ii) N.I.S. This way this manager is related with the whole
institutions planning work.
(h) Engineering: Engineering General Manager is liable for
engineering work of federation. Two departments are under
it (i) Project Engineering and (ii) Maintenance Engineering.
This way its main function is to maintain engineering.
(i) Material Management Department (M.M.D.): This
manager is responsible for materials manager. This way it is
related to purchasing management and inventory
management. Two departments are under it (i) Central
Executed Purchase Management and (ii) Inventory Control.
Both the departments performs the determined works under
their General Manager.
(j) Research and Development: Research and development is
unavoidable for any institutions progress in today‟s
technical age. Federation has made an separate department
at central level. There is one acting person to perform this
work. Research and development work is done by the
charger for institutions progress.
(k) Electronic Data Processing (E.D.P.) : Electronic Data
Processing analysis the information and develops systems
for effective communication. Two departments are under
Electronic Data Processing charger Data Processing and
System development.
Special Programmes: It should be known that cooperative
dairy federation mainly does dairy business. But along with this
other special programmes are also started. Through which rural life
is developed. There is an individual department for this. This
department has an charge. Special programmes are applied on its
supervision and control. There is 4 sub-departments – Inspection,
Special Project, Society Training and Research and Development.
Programmes. 4 sub-Department under Special Project like –
technology Mission, Co-operation Division, U.P. Women, Dairy
Project & Financial Assistance of milk Animals.
This is clear that Pradeshik Co-operation Dairy Federation has
prepared an well managed organization structure for its pre-
determined objectives. Not only this, but also federation has divided
different departments and sub-departments of whole functions for
efficient performance. For Carrying out the whole programmes
successfully and for proper planning implementation, follow up,
monitoring etc. an effective organization structure is still at work.
Execution of Financial Function:
Analysis of financial activities is an indicator of enterprise
profitability and effectiveness. Along with this we come to know
about financial management capability enterprise owner policy
former. Employees and eternals get the knowledge of their
enterprise efficiencies. With this institution other work like,
planning, production, manpower management and marketing
decisions are also effected. Policy formulation and managerial
efficiency is attached at higher level with finance analysis in modern
age. In this part of the chapter we will discuss the execution of
financial functions of Pradeshik Co-operative Dairy Federation.
Financial performance analysis reveals the profitability
position and effectiveness of an enterprise as also the efficiency of
its financial management. It thus helps in understanding the
soundness of the enterprise to the owners, policy makers,
employees and the outside publics. The other activities, such as,
production planning, human resources management and marketing
decisions are highly influenced by the utilization of funds. The
Pradeshik Co-operative Dairy Federation a state Government
enterprise, has employed a huge capital in order to perform is
activities in an effective and better way. In this section, an attempt
has been made to evaluate the financial performance of the
Pradeshik Co-operative Dairy Federation in relation to the amount
of capital, reserve and supplies, borrowing assets etc.
Share Capital:
The main divisions of share capital are:
(i) Authorized or Nominal or Registered Capital:
The amount of capital with which the Company intends to be
registered is called registered capital. It is the maximum amount
which the Company is authorized to raise by way of public
subscription. There is no legal limit on the extent of the amount of
authorized capital.
(ii) Issued Capital:
The part of the authorized capital which is offered to the
public for subscription is called issued capital.
(iii) Subscribed Capital:
It is that part of the issued capital for which applications are
received from the public and subsequently allotted to the applicants
by the directors of the Company. The quantum of issue whether
through a right or public issue, shall not exceed the amount
specified in the prospectus/utter of offer. Retention of over
subscription not allowed under any circumstances.
(iv) Called up Capital:
The amount on the shares which is actually demanded by the
Company to be paid is known as called up capital.
(v) Paid up Capital:
The part of the called up capital which is offered and is
actually paid by the members is known as paid up capital. The sum
which is still to be paid is known as calls in arrears. Paid up capital
is the amount which is to be added to the total of the liabilities side
as it is the actual capital which is received shareholders.
(vi) Reserve Capital:
A company determines by, a special resolution that any
portion of its share capital which has not been already called up
shall not be capable of being called up except in the event of
winding up of the Company. Such type of share capital is known as
reserve capital.
Table 2.1
Year State Top
instituti
on
Dairy
federati
on
From
Primary
Cooperati
ve dairy
federatio
n
Total Index
No.
Base
year
(1990-
91)
100
1990-91 1548.79
(-)
2.50
(-)
43.51
(-)
.23
(-)
1593.0
3
(-)
100
1991-92 1847.26
(19.27)
2.50
(0.00)
43.52
(0.02)
0.23
(0.00)
1893.51
(18.71)
119
1992-93 1889.08
(2.26)
2.50 (0.00)
43.52
(0.00)
0.23 (0.00)
1935.33
(2.21)
121
1993-94 1975.07
(4.55)
2.50
(0.00) 43.52
(0.00)
0.23
(0.00) 2021.32
(4.44)
126
1994-95 2293.77
(16.13)
2.50 (0.00)
43.53
(0.02)
0.23 (0.00)
2340.03
(15.76)
146
1995-96 2621.72
(14.29)
2.50 (0.00)
43.65
(0.27)
0.23 (0.00)
2668.1
(14.02)
167
1996-97 3022.26
(15.27)
2.50
(0.00) 43.65
(0.00)
0.23
(0.00) 3068.64
(15.01)
192
1997-98 3458.37
(14.43)
2.50 (0.00)
114.40
(162.08)
0.23 (0.00)
3575.5
(16.52)
224
1998-99 3933.37 2.50 (0.00)
124.41 0.23 (0.00)
4060.51 255
(13.73) (8.75) (13.36)
99-2000 4380.60
(11.37)
2.50 (0.00)
124.91
(0.40)
0.23 (0.00)
4508.24
(11.03)
283
2000-01 1585.07
(-63.81)
2.50
(0.00) 124.91
(0.00)
0.23
(0.00) 1712.71
(-62.01)
107
2001-02 1285.07
(-18.93)
2.50 (0.00)
124.91
(0.00)
0.23 (0.00)
1412.71
(-17.52)
89
2002-03 1212.06
(-5.68)
2.50 (0.00)
124.91
(0.00)
0.23 (0.00)
1339.7
(-5.17)
84
Table 2.1 shows trends in the share capital of Pradeshik Co-
cooperative Dairy Federation during 1990-91 to 2002-2003. It is
evident that the share capital has a paramedic growth. IN the initial
years the share capital witness encouraging growth as a result by
the year 1999-2000. The share capital recorded three times growth
from Rs. 1595 lakhs in 1990-91 to Rs 4508 lakhs in 1999-2000.
From 2000-2001the share capital started declining with result that
it came down to the lowest level of Rs. 1340 lakhs in 2002-2003.
The annual rate of growth in share capital also presented
fluctuating trend.
The share capital of the federation is contributed by the State
Government, Financial Institution, Dairy federation and Primary
Cooperative Dairy Federation. In the year 1990-91 State
Government contributed to about Rs. 1549 lakhs in the year 1999-
2000. There after the contribution of the state Government started
declining consequently by the year 2002-2003 the share capital of
State Government came to the lowest level of Rs. 1212 lakhs. There
are other contributors of share capital of Pradeshik Co-operative
Dairy Federation among them Dairy Federation and Financial
Institution are important. The contribution by financial institutions
has been contact through out the period uder study. The
contribution of Dairy Federation. During the period in the study
recorded about three fold increase from Rs. 43.52 lakhs 1990-91 to
Rs. 124.91 lakhs in 2002-2003. The contribution of Primary Co-
operative Dairy Federation has been constant during the period
under study.
In this way, it is obivious that State State Government is the
only main shareholders of Pradeshik Co-operative Dairy Federation.
But its share is being declining because the institution is self-
sufficient to fulfill its needs.
Table 2.2: Relative Shares of Contributor’s P.C.D.F.’s Share Capital (Share in %) Year State
Government Top Institutions
Dairy Federation From Primary Co-operative Dairy fed.
Total
1990-91 97.10
0.16 2.73 0.01 100
1991-92 97.56
0.13 2.30 0.01 100
1992-93 97.61
0.13 2.25 0.01 100
1993-94 97.71
0.12 2.15 0.01 100
1994-95 98.02
0.11 1.86 0.01 100
1995-96 98.26
0.09 1.63 0.01 100
1996-97 98.49
0.08 1.42 0.01 100
1997-98 96.72
0.06 3.19 0.01 100
1998-99 96.87
0.06 3.06 0.01 100
1999-2000 97.17
0.06 2.77 0.01 100
2000-2001 92.55
0.15 7.29 0.01 100
2001-2002 90.996
0.18 8.84 0.01 100
2002-2003 90.471 0.19 9.32 0.01 100
Source: Table2.1
Comparative Shares of Contributor’s in Share Capital of P.C.D.F. (share in %):
Table 2.2 indicates the share of State Government, Top
Financial institutional, Dairy Federation and Primary Co-operative
Dairy Federation in share capital. It is clear by analyzing the table
that State Government has the highest share in total share capital.
State Government share shows the fluctuating trend. In the year
1990-91 it has 97% which reduced in the last year of the study
period that is year 2002-2003 it reduced in 90%. Because they are
self sufficient for capital. Therefore, Government share has been
reduced. And the Primary Co-operative Dairy Federation share has
the lowest contribution that was 0.01%. And Dairy Federation and
Top Institutions are 9.32 and 0.19 respectively. The fluctuating
trend is shown in State Government and Dairy Federation. But top
institution and Primary Co-operative Dairy Federation show almost
constant trend. In the year 1990-91 top institutions shows 0.16%.
But it increased in the last year of the study period that was 2002-
2003. But Dairy Federations also shows fluctuating trend like State
Government. As a result in the year 1990-91 it was 2.73% share in
total of share capital. And it shows increase decrease in different
rates and at last year of the study period 2002-2003, it was 9.32%,
so it has increased its share in total share capital.
Reserve and Surplus:
Reserve is an part of or share of profit. This is kept for unexpected
circumstances in future emergencies. Along with this it is also kept
for future losses, maintenance, rationalization innovations etc. It is
of two types: Revenue Reserve and Capital Reserve. The amount
which is transferred to reserve from the earned.
Table 2.3: Reserve and Surplus of P.C.D.F. (in Lakh Rs.) (%
inc/dec in bracket)
Year Share
Capital for
Again Payment
Building
Fund
Live
Stock
Fund
Developme
nt discount
fund
Land
fund
Total Index
No.
1990-91
1990-91 - 8.28
(-)
5.93
(-)
10.49
(-)
5.12
(-)
29.82
(-)
100
1991-92 - 11.95
(44.32)
5.93
(0.00)
10.49
(0.00)
5.12
(-)
33.49
(12.30)
112
1992-93 - 8.12
(-32.05)
5.93
(0.00)
10.49
(0.00)
3.42
(0.00)
27.96
(-16.51)
94
1993-94 402.3
(-)
4.45
(-45.19)
5.93
(0.00)
10.49
(0.00)
3.42
(-
33.20)
426.35
(1424.85
)
1430
1994-95 402.36
(0.00)
4.45
(0.00)
5.93
(0.00)
10.49
(0.00)
3.42
(0.00)
426.35
(0.00)
1430
1995-96 402.36 (0.00)
4.45 (0.00)
5.93 (0.00)
10.49 (0.00)
3.42 (0.00)
426.35 (0.00)
1430
1996-97 402.36
(0.00)
- - - - 402.36
(-5.62)
1349
1997-98 402.36
(0.00)
- - - - 402.36
(0.00)
1349
1998-99 - - - - - 920.57
(128.79)
3087
1999-
2000
- 4.45
(0.00)
5.93
(0.00)
- - 10.08
(-98.90)
34
2000-2001
- 4.45 (0.00)
5.93 (0. 00)
10.49 (0.00)
3.42 (0.00)
23.99 (137.99)
80
2001-
2002
- 4.45
(0.00)
5.93
(0.00)
10.49
(0.00)
3.42
(0.00)
23.99
(0.0)
80
2002-
2003
402.36
(0.00)
4.45
(0.00)
5.93
(0.00)
10.49
(0.00)
3.42
(0.00)
426.35 (1677.19)
1430
Source: Compiled Annual Report of P.C.D.F., Lucknow.
Profit is called Revenue Reserve General Reserve. In other
hand Reserve kept for compensating future capital loss from capital
profit is called Capital Reserve.
Pradeshik Cooperative Dairy Federation has kept many funds
relating to general reserve and surplus. Different funds or reserves
are maintained for different objectives. Federation has maintained
five funds in relation to General reserve and Surplus for different
purpose.
Following are those:
i. Share Capital for again Payment.
ii. Building fund.
iii. Live Stock Fund.
iv. Development Discount Fund.
v. Land fund
Table 2.3 presents the General Reserve and Surplus of
Pradeshik Cooperative Dairy Federation. It is clear by analyzing this
table that Federation‟s Development role increases – decreases.
In the year 1990-91 Federation‟s total General Reserve and
Surplus was Rs. 30 lakh which increased to Rs. 33 lakh in the year
1991-92. After which it shows constant result continuously in the
year 1993-94, 1994-95 and 1995-96 that was Rs. 426 lakh
respectively. After that it reduced to Rs. 402 lakh in the year 1996-
97 in comparison to previous year which continued in the next year
1997-98. But after that total General Reserve was Rs. 921 lakh
which was the highest during the stud period. But just after that it
reduced to Rs.10 lakh which reduced to 99% in comparison to
previous year. But after that it presents increasing trend. In last
year of study period 2002-2003 total Reserve and Surplus increased
to Rs. 426 lakh again which increased 1677% in comparison to
previous year.
By analyzing this table it is clear that federation has kept
reserves according to their different necessities. Different funds
amount fluctuate in different ration in different years of the study
period. The point which is to be noted that development discount
fund remains constant in complete study period. And also it shows
nil in few years those are 1996-97, 1997-98, 1998-99, 1999-2000.
In case of building fund, in the year 1990-91it was Rs. 8 lakh. But
after that it increased to Rs. 12 lakh approximately in the year
1992-93. Then in the next year it reduced to Rs. 8 lakh which was
32% decrease. But after that upto the last year of the study period
it remains constant on more than Rs. 4 lakh. Same way land fund
also shows the same condition that in the beginning of the study
period 1990-91land fund was Rs. 3 lakh. Live Stock Funds shows
the constant result in the complete study period, and same thing
with share capital used for payment is also constant in the whole
study period.
Table2.4: Share of Contributories in General Reserve and Surplus of P.C.D.F. Year Share
Capital for
again Payment
Building
Fund
Live
Stock
Found
Developme
nt
Discount Fund
Land
Fund
Total
1990-91 - 27.76 19.88 35.17 17.16 100
1991-92 - 35.68 17.71 31.32 15.29 100
1992-93 - 27.10 21.21 37.52 12.23 100
1993-94 94.37 1.04 1.32 2.46 0.80 100
1994-95 94.37 1.04 1.32 2.46 0.80 100
1995-96 94.37 1.04 1.32 2.46 0.80 100
1996-97 100 - - - - 100
1997-98 100 - - - - 100
1998-99 - - - - - 100
1999-2000 - 44.15 55.85 - - 100
2000-2001 - 18.54 23.46 43.73 14.26 100
2001-2002 - 18.54 23.46 43.73 14.26 100
2002-2003 94.37 1.04 1.32 2.46 0.80 100
Source: Table 2.3
Table 2.4 indicates the share of different funds contribution in
total general reserve and surplus. It is clear by analyzing this table
that share of different funds changes time to time share capital for
again payment has highest share in total General Reserve. This
fund was not established upto the year 1992-93. This fund was
established in the year 1993-94. So its share in total General
reserve was 94% in the year 1993-94 which remains constant upto
the year 1995-96. But after that it increased to 100%. Share in total
General Reserve and Surplus and maintained it in the year 1997-98
also. But after that this fund has nil balance. But again in the year
2002-2003 it increase to Rs. 94%.
Development Discount Fund maintains second position. In the
year 1990-91 it was Rs.35% which reduced in the year 1991-92
which was 31% in total General Reserve and Surplus. But again it
increased to more than 37% in the year 1993-94 which was 2%
which remained constant upto the year 1995-96 and was nil from
the year 1997-98 upto 1999-2000. But in the year 2000-2001 it
increased to 44% which continue in the next year. But again it
reduced to more than 2% in the year 2002-2003.
Live Stock Fund in the third important fund. Its share also
fluctuates in the study period of 1990-91 to 2002-2003. In the year
1990-91 its share was 20% out of total General Reserve and
Surplus. But in the next year 1991-1992 its share reduced to 18%,
which again increased in the year 1992-93. It means its share
increased to 21%. But again it reduced to 1% which remained
constant upto 1995-96. And was nil upto 1998-99. After that its
share increased to 56%. And then again it started declining and at
last it came to 1% share in total General Reserve and Surplus.
And lastly comes Building Fund, whose share in total General
Reserve and Surplus in the year 1990-91 was 28% which increased
to 36% in the next year 1991-92, which again reduced to 27% and
in next year again it reduced upto 1% which remains constant upto
1995-96 and after that it became nil upto 1998-99. But in the next
year 1999-2000 its share increased to 44%. Then again it reduced
in the next year 2000-2001 which was 19%, which remained
constant in the next year. But in the next year 2002-2003 its share
reduced to 1%. It is clear by analyzing this table that Federation‟s
General Reserve and Surplus shows on fluctuating and in some
funds constant trend. But in last year of the study period it
reduced. This shows that as other funds share increases these
funds share decreases and viz. versa as other funds decrease these
funds share increases.
Grants and Assistance:
From few years, attention is paid for the development of Dairy
Unions in the country and for effective development different
Government and central Government and some International
Financial Institutions gives them economic support in the forms of
Grants and Assistance. Pradeshik Cooperative Dairy Federation are
also provided this type of financial help as in the form of Grants
and Assistance.
Table 205 presents the total Grants and Assistance of
Federation. From the help of this table we can say that its amount
of Grants and Assistance shows an fluctuating tends. In year 1990-
91 federation has received Rs. 523 lakh as Grants and Assistance
which increased to 35% in the year 1991-92. It increased upto the
year 1992-93 that was Rs. 836 lakh which was 18% in comparison
to the pervious year. But in the year 1993-94 it reduced upto Rs.
769 lakh in comparison to previous year that was about 8% and
again in the next year 1994-95 also reduced to Rs. 553
Table 2.5: Total Grants and Assistance of Federation
Year Total(In lakh)
Increase/ decrease
Comparative (%)
(Base Year 1990-91)
Index Numbers
1990-91 522.64 - 100
1991-92 707.16 35.31 135
1992-93 835.95 18.21 160
1993-94 768.76 -8.04 147
1994-95 552.54 -28.13 106
1995-96 617.48 11.75 118
1996-97 257.22 -58.34 49
1997-98 600.19 133.34 115
1998-99 NA NA NA
1999-2000 882.43 (0.00) 169
2000-2001 731.89 -17.06 140
2001-2002 637.64 -12.88 122
2002-2003 233.85 -63.33 45
Source: Complied Annual Report of P.C.D.F., Lucknow.
Lakh, which reduced upto 28% in comparison to previous
year. But in the year 1995-96 it increased to Rs. 600 lakh. It
continues upto the year 1999-2000 that was Rs. 882 lakh, but after
that it started reducing upto the study period. And in the year
2000-2001 it reduced to Rs.732 lakh which was 17% in comparison
to previous year. At last in the year 2002-2003 as the last year of
study period it was Rs. 234 lakh. So, it shows the decreasing rend
in the study period as compared to the previous years.
Deposits and Securities:
Pradeshik Cooperative Dairy Federation‟s gets deposits and
securities by different sources. Deposits and securities are the
indicator for success of business and working efficiency of any
institutions. On the other hand, it is also an guideline for knowing
the financial soundness of any institutions. The main source of
federation for deposits and securities are securities of parties,
public deposits, dairy unions, agents, committee, employees
deposits etc. along with this all, deposits are received from
contractors, suppliers also.
Table 2.6: Deposits and Securities of P.C.D.F.
Year Deposits and
Securities (In lakh)
Increase/Decrease
Comparative (%)
(Base Year 1990-91)
Index Numbers
1990-91 818.66 - 100
1991-92 34.62 -95.77 4
1992-93 43.70 26.37 5
1993-94 53.89 23.18 7
1994-95 88.32 63.89 11
1995-96 101.89 15.25 12
1996-97 192.17 88.89 23
1997-98 203.76 6.03 25
1998-99 311.37 52.81 38
1999-2000 444.88 42.88 54
2000-2001 511.14 14.89 62
2002-2003 109.23 -78.63 13
2003-2004 100.59 -7.91 12
Source: Complied Annual Report of P.C.D.F., Lucknow
Table 2.6 indicates the Federation‟s total amount of deposits
and securities. It is clear by analyzing this table in the study period
of year 1990-91 to 2002-2003 that it has increased to 0.12 times.
Index of 2002-2003 was 12 as taking the base year as 1990-91. In
the year 1990-91 its total amount of deposits and securities and
securities were approximately Rs. 819 lakh which decreased in the
year 1991-92 upto Rs. 35 lakh which was reduced to 96% in
comparison to the previous year. Again in the next year 1992-93 it
increased to Rs. 44 lakh and gradually the continuous way it
increased in the year 1993-94, 1994-95, 1995-96, 1996-97, 1997-
98, 1998-99, 1999-2000 and 2000-2001 that are Rs. 54 lakh, Rs.
88 lakh and Rs. 511 lakh respectively. But increase rate was not in
a same ration it shows the fluctuation trend like in the year of
1993-94, 1994-95, 1995-96, 1996-97, 1997-98, 1998-99, 1999-
2000, 2000-2001 were 26%, 23% 64%, 15%, 89%, 6%, 53%, 43%,
and 15% respectively. And in the next year 2001-2002 it reduced to
Rs. 109 lakh that was reduction of 79% in comparison to the
previous year. Again in the year 2002-2003 it reduced to Rs. 101
lakh that was 8% in comparison to previous year. It reduced to Rs.
101 lakh that was 8% in comparison to previous year. It means it
has decreasing. But has reduced the decreasing rate means that
Federation in still trying to improve.
It is clear by analyzing this table that it shows fluctuating trend in
the year 1990-91 to 1991-92. But again in the year 1992-93 upto
2000-2001 it shows increasing trend. But again from the year
2001-2002 it shows decreasing trend. But the speed of reduction
reduced in the next year 2002-2003. As it started decreasing in the
end of study period due to same reason. But in the last year it
maintained it. It reduced upto 8% only in comparison to the
previous year. It shows fluctuating trend because there was
fluctuation in the amount of securities of different parities Dairy
Unions, Dairy agents and Committees.
Loan on Securities an Advances:
Like other institutions Pradeshik Cooperative Dairy Federation
also take loans. Federation‟s loan as short loan and long term loans
sometimes loan are taken for some specific purpose loan were taken
by the banks. Government also gives loan to the Federation. Other
financial institutions are also gives loan to federation. In these way
different sources also gives them advances. Banks providing loans
to federation re State Bank of India, Uttar Pradesh Cooperative
Banks, Syndicate Banks and Bank of Baroda.
Table 2.7: Loan on Securities and Advances of P.C.D.F.
Year Total Loans on Securities
and
Advances (In lakh)
Increase/ decrease
Comparative %)
(Base Year 1990-91)
Index Numbers
1990-91 1019.39 - 100
1991-92 2136.63 95.77 165
1992-93 2299.74 1.08 211
1993-94 2815.90 22.44 258
1994-95 3488.84 23.89 320
1995-96 3369.08 -3.43 309
1996-97 1882.83 -44.11 173
1997-98 118.17 -93.72 11
1998-99 272.51 130.61 25
1999-2000 274.07 0.57 25
2000-2001 480.54 75.33 44
Source: Complied Annual Report of P.C.D.F., Lucknow.
Table 2.7 shows loans on securities and Advances of
Federation. It is clear by analyzing this table that in the study
period of 1990-1991 upto 2000-2001 it increased to .44 times. Total
amount of loans and advances were Rs.1091lakh in the year 1990-
1991 which increased to more than Rs.2136lakh which was 96% in
comparison to previous year. Therefore this period of study shows
incase of 2 times approximately. In the year 1992-93 it increased to
more than 1% and again in the next year 1993-1994 it increased
more than the previous year that was more than 22% and again in
the year 1994-1995 it increased to more than 23% in comparison to
previous year. But in the next year 1995-96 it reduced to
Rs.3369lakh that was decrease of 3% and there was continuous
decrease. Gradually in the yea 1996-1997 and 1997-98 that was
44% and 94% respectively. Again in the year 1998-99 it increased
to more that 130% in comparison trend of increase upto the last
year of the study period that was year 2000-2001. In this way there
was Rs.481lakh of loans and advances of federation.
By analyzing this table it clear that Pradeshik Cooperative
Dairy Federation‟s loan on Securities and Advances total amount
during the study period of 1990-91 upto 2000-2001 shows the
three fold trend that from the year 1990-91 upto 1994-95 it shows
the increasing trend. But from the year 1995-96 upto 1997-98 it
shows the decreasing trend. But again form the year 1998-99 upto
2000-2001 it shows increasing trend but in different of increase or
decrease.
Fixed Asset:
Fixed assets refers to those assets which are held for
continued use in the business for the purpose of producing good or
services and are not meant for resale. Economical resources are
presented by fixed asset. It is very important for any institution.
Knowledge of purchasing power and future profit can be known by
it. It can be divided into four parts-Fixed Asset, Current Asset,
Investment and Other Assets. Fixed assets are long term asset. It is
for more that the time period of accounting and it is used for
business not for sale. Pradeshik Cooperative Dairy Federation‟s has
different types of fixed assets like land, building, plant and
machinery, furniture and fixture, milk tankers, milk booth, tools
and equipment, books and magazines etc.
Table 2.8 clears the fid assets of Pradeshik Cooperative Dairy
Federation‟s. In the study period form 1990-91 to 2002-2003 it has
increased to less than 1 times. In the year 2002-2003 its index is
64 whose base year was 1990-91.
It is clear form the table that in the year 1990-91 its total fixed
asset was Rs.351lakh which decreased in the next year 1991-92
that was upto 66% that was Rs.118lakh. Again in the year 1992-93
there was less decrease in comparison to pervious year that was
only 21%. But after that table shows the continuous increase in the
Federation‟s Fixed Asset. And that was upto 1998-99. But again in
the year 1999-2000 it started
Table 2.8: Fixed Assets of P.C.D.F.
Year Fixed Assets
(in lakh)
Increase/ decrease
Comparative (%)
(Base year 1990-91)
Index Number
1990-91 350.74 - 100
1991-92 118.11 -66.32 37
1992-93 92.90 -21.34 26
1993-94 267.14 187.56 76
1994-95 319.44 19.58 91
1995-96 385.55 20.69 110
1996-97 511.12 32.57 146
1997-98 544.59 6.55 155
1998-99 579.10 6.34 165
1999-00 378.07 -34.49 108
2000-01 247.25 -34.49 71
2002-03 240.25 -2.99 68
2002-03 223.55 -6.95 64
Source: Complied Annual Report of P.C.D.F., Lucknow.
Declining upto the last year of the study period that was 2000-
2003. Therefore, it is clear form the study of this table that
federation shows three fold system that form the beginning of the
study period that was 1990-91 upto 1992-93 it shows the declining
stage. But after that form the year 1993-94 upto 1998-99 it shows
the increased stage. And again form 1999-2000 upto the last 2002-
2003 it shows the declining trend. So we can say that Federation‟s
Fixed Asset is fluctuating.
Current Asset:
Currents assets are those assets which are meant for sale or
which the management would want to convert into cash within one
year. As such these assets are also termed as „short-lived or active
asset‟. For example „Debtors‟ are expected to be converted into cash
within a reasonable short period, stock is continuously sold and
bills receivables are also converted into cash. The current assets are
usually defined as those assets which are convertible into cash
through the normal course of business with in a short time
ordinarily in a year. Current assets are of two types-liquid or
convertible assets.
Current assts includes cash, bills receivable, short-term
investment, debtors, prepaid expenses, accrued income, closing
stock etc.
Liquid assets are those which are either in the form of cash or
can be quickly converted into cash such as cash, bills receivable,
short-term investment, debtors, accrued income etc.
Table 2.9: Current Assets of P.C.D.F.
(% inc/dec in bracket)
Year Closing
Stock (in Lakh)
Stock
and Storage
(in Lakh)
Sundry
Debtors (in Lakh)
Cash and
Bank (in Lakh)
Total Index No. Base year (1990-91)
= 100
1990-91 806.95 (-)
160.39 (-)
954.81 (-)
308.66 (-)
2230.81 (-)
100
1991-92 386.37 (-52.12)
23.20 (-85.53)
952.26 (-0.26)
331.46 (7.39)
1693.29 (24.09
76
1992-93 137.12 (-64.51)
26.20 (12.93)
699.45 (-26.55)
615.74 (85.74)
1478.51 (-12.68)
66
1993-94 165.01 (20.34)
26.69 (1.87)
557.67 (-20.27)
645.43 (4.82)
1394.80 (-5.66)
63
1994-95 221.43 (34.19)
146.02 (447.09)
1224.31 (119.54)
403.71 (-37.45)
2068.43 (3.66)
93
1995-96 176.08 (-20.48)
120.54 (17.44)
1374.24 (12.25)
397.57 (1.52)
2068.43 (3.66)
93
1996-97 - - - 111.82 (-71.87)
11.82 (-94.59)
5
1997-98 - - - 287.43 (157.05)
287.43 (157.04)
12
1998-99 - - 2240.67 (-)
180.07 (-37.35)
2420.74 (742.20)
108
1999-00 - - 1542.77 (31.15)
107.69 (-40.19)
1650.46 (-31.82)
73
2000-01 167.96 (0.00)
88.39 (0.00)
697.56 (-54.79)
511.14 (374.64)
1465.05 (-11.23)
66
2001-02 224.31 (33.55)
64.57 (-26.95)
387.51 (-44.15)
599.94 (17.37)
1276.33 (-12.88)
57
2002-03 218.90 (-2.41)
57.88 (-10.36)
447.75 (15.55)
576.85 (-3.85)
1301.38 (1.96)
58
Source: Complied Annual Report of P.C.D.F., Lucknow.
Table 2.9 indicates current assets. It is clear form analyzing
this table that Federation has divided its current assets into four
parts those are closing stock, stock and storage, sundry debtors,
cash and bank. Federation current assets has been increased to
less that is I times (0.58) in between the study period of 1990-91 to
2002-2003. Total current asset was Rs.2231lakh in the year 1990-
91 which reduced to Rs.1693lakh in the next year 1991-92 that
declined to 24%. It is clear form the table of current asset that
Federation‟s different current asset increases of decreased into
different ratio rates. Cash and Bank has increased the most
because in the study period it has increased to 2 times. In the other
hand the least increment was of closing stock was 0.27 times. And
increase of other current assets. Gradually stock and storage and
sundry debtors were 0.36 and 0.46 respectively.
Composition of Current Assets:
Table 2.10 indicates the share of different current assets in
total current assets. From this table it is clear that cash and bank
has the highest share in total current assets and sundry debtors.
Comes on second place in share of total current asset. Closing stock
and stock and storage has third and fourth position respectively.
There was always a fluctuating trend in these current assets. Share
of closing stock in the study period was highest in the year 1990-91
that was 36% and was lowest in 1996-97 that was nil.(%)
Table 2.10: Composition of Current Assets (in percentage)
Year
Closing
stock
Stock
and Storage
Sundry
Debtors
Cash and
Bank
Total
1990-91 36.17 7.19 42.80 13.84 100
1991-92 22.82 1.37 56.24 19.57 100
1992-93 9.27 1.77 47.31 41.65 100
1993-94 11.83 1.91 39.99 46.65 100
1994-95 11.10 7.32 61.35 20.23 100
1995-96 8.51 5.82 66.43 19.22 100
1996-97 0.00 0.00 0.00 100 100
1997-98 0.00 0.00 0.00 100 100
1998-99 0.00 0.00 92.56 7.43 100
1999-00 0.00 0.00 93.47 6.52 100
2000-01 11.46 6.03 47.61 34.88 100
2001-02 17.57 5.05 30.36 47.00 100
2002-03 16.82 4.44 34.40 44.32 100
Source: Table 2.10
Some way, share of stock and storage share during the study
period was highest in the year 1994-95 that was 7% and was lowest
in the year 1996-97 that was 0%. In another hand sundry debtors
share was highest in the year 1999-2000 that was 93% and lowest
in the year 1996-97 that was 0% and at last, the share of cash and
bank was highest in the year 1996-97 and 1997-98 that was 100%
and lowest in the year 1999-2000 that was 7%.
Formatted: Centered, Space Before: 0 pt, Linespacing: single
Investment and Deposits:
Like other institutions Pradeshik Cooperative Dairy Federation
also invests and deposits in different sources. Federation generally
deposit in U.P. Cooperative Bank, Municipal Board, Appointment
Association etc. On other hand Federation also invest in different
Financial Institutions plans in which Bank in the main source.
Along with this Federation also deposits in the post office also.
From this it is clear that to increase the income of institutions,
managers invest the capital in a planned way. The Federation has
increased to 0.09 times during the study period of 1990-91 to 2002-
2003.
Table 2.11: Investment and Deposits (Rs. in lakhs)
Year Investment and
Deposits
Increase/ Decrease
Comparative (%)
(Base Year 1990-91)
Index Numbers
1990-91 52.85 - -
1991-92 37.23 -30 70
1992-93 21.65 -41.84 41
1993-94 43.01 98.66 81
1994-95 66.79 55.29 126
1995-96 100.23 50.06 190
1996-97 192.17 91.73 364
1997-98 203.76 6.03 386
1998-99 4.60 -97.74 9
1999-00 25.90 463.04 49
2000-01 21.36 -1753 40
2001-02 4.60 -78.46 9
2002-03 4.55 -1.09 9
Source: Complied Annual Report of P.D.C.F., Lucknow
It is clear from table 2.11 that in the year 1990-91 Federations
total investment was Rs.53lakh. But in the next year it reduced to
Rs.37lakh that was 30% in comparison to the previous year. Again
it reduced in the year 1992-93 that was Rs.22lakh. But after that it
stated increasing in the year 1993-92 that was Rs.43lakh and it
shows an increasing trend in continuous tend upto 1997-98 that
was Rs.204lakh. That means, it shows more than 100% result. But
after that it reduced to Rs.5lakh in the year 1998-99. And then
again it started increasing upto the year 1999-2000. But after that
again it started reducing and continued upto the last year of the
study period. So, in the year 2000-2001 there was Rs.21lakh of
total investment and deposits which was 18%reduction in
comparison to the previous year. After that it shows an negative
trend.
It is clear by analyzing this table that Federation had paid
more attention in the beginning years. And it shows an fluctuating
trend. But after1999-2000 year it shows an deceasing trend. It can
be said that after 1999 Federation has expended its own work,
which need itself a large amount of finance.
Current Liabilities:
Current liabilities refer to those liabilities which are to be paid
in near future (normally within one year). In current liabilities
includes Bank Overdraft, Bills Payable, Creditors Outstanding
expenses and short term loans and provision for taxation.
Table 2.12: Current Liabilities of P.C.D.F. (in Lakh Rs.) (% inc/dec bracket)
Year Sundry
Creditors
Deposits
and
Securities
Current
Liabilities and
Provisions
Total Index No.
Base Year
(1990-91)
=100
1990-91 565.50 818.66 267.66 1651.82 100
Formatted Table
(-) (-) (-) (-)
1991-92 496.81
(-12.46)
34.62
(-95.77)
171.26
(-36.07)
702.55
(-57.46)
43
1992-93 218.81
(-55.95)
43.75
(26.37)
207.34
(21.16)
469.9
(-33.12)
28
1993-94 232.99
(6.48)
53.89
(23.17)
251.57
(21.33)
583.45
(24.16)
35
1994-95 588.00
(152.37)
88.32
(63.89)
334.56
(32.98)
1010.88
(73.25)
61
1995-96 756.17
(28.60)
101.79
(15.25)
451.51
(34.96)
1309.47
(29.53)
79
1996-97 - - 497.99
(102.94)
497.99
(-61.97)
30
1997-98 - - 10.11
(-97.96)
10.11
(-97.96)
0.6
1998-99 1845.91
(-)
- 768.27
(7499.10)
2614.18
(25757.36)
158
1999-00 1348.39
(-26.95)
169.26
(-)
937.65
(22.05)
2455.30
(-6.07)
149
2000-01 289.30
(-78.54)
(-) 1734.70
(85.01)
202.4
(-17.56)
123
2001-02 495.51
(71.28)
170.17
(-)
210.21
(-87.88)
875.89
(-56.72)
53
2002-03 403.51
(-18.57)
180.74
(6.21)
303.26
(44.26)
887.49
(1.32)
54
Source: Complied Annual Report of P.C.D.F., (Various Issues)
Table 2.12 is the indicator of Federation‟s current liabilities. It
is clear by analyzing this table that Federation has divided its
current liabilities into three parts-sundry Creditors, Deposits and
Securities, Current Liabilities and Provisions. Federation‟s current
liabilities has increased to 0.54 times in between the study period of
the year 1990-91 to 2002-2003. because its index was 54 as
assuming 1990-91 as base year. In the year 1990-91 Federation‟s
total current liabilities was R.1652lakh which reduced to
Rs.703lakh in the next year 1991-92. Again it reached to highest of
Rs.2614lakh in the year 1998-99 in a fluctuating trend. So, it is
clear by analyzing the Federation‟s total current liabilities that in
the year 1991-92,1992-93,1996-97,1999-98,1999-2000, 2000-
2001and in the year 2001-2002 it shows an decreasing trend in
different ratio.
In the year 1990-91 total sundry creditors were more than
Rs.565lakh. But in the next year it shows the sundry creditor as
Rs.497lakh which reduced to 12% in comparison to previous year.
And this way it reduced upto the yea 1993-94 which as more than
.232lakh but after that in the year 1994-95 it shows an increase of
Rs.588lakh and also increased in the next year. But in the year
1996-97 and 1997-98 the sundry creditors were nil. Again it
increased in the year 1998-99 that was Rs.1846lakh in this way it
shows fluctuating trend of increase-decrease in different rates. In
the year 2001-2002 total sundry creditors were Rs.496lakh which
again reduced in the year 2002-2003 upto Rs.403lakh. This way
sundry creditors shows fluctuating tend. In the study period of
Federation‟s Deposits and securities in between the year 1990-91 to
2002-2003 it increased to 0.22 times. It means of Federation‟s
Deposits and Securities shows fluctuating trend in between the
study period. As its shows as nil amount in the year 1996-97,
1997-98 and 1998-99. As analyzing relating to current liabilities
and provisions. We can say that it increased upto the year 1996-97
in different rate of increased expect the year 1991-92 which
reduced to 36%. As a result in total of study period current
liabilities and provisions has increased to more than I times.
Composition of Current Liabilities:
It is clear from table 2.13 that sundry creditor share is the
highest in total of current liabilities which was 34% in the year
1990-91 and was 57% in the year 2001-2002 by maintaining it in
increasing-decreasing trend in between the study period. But again
in the year 2002-2003 it reduced to 45%.
Table 2.13: Compositions of Current Liabilities
Year Sundry
Creditors
Deposits and
Securities
Current
Liabilities and Provisions
Total
1990-91 34.23 49.56 16.20 100
1991-92 70.71 4.93 24.36 100
1992-93 46.56 9.31 44.12 100
1993-94 39.93 9.23 43.12 100
1994-95 58.17 8.74 33.09 100
1995-96 57.75 7.77 34.48 100
1996-97 0.00 0.00 100 100
1997-98 0.00 0.00 100 100
1998-99 70.61 0.0 29.39 100
1999-2000 54.92 6.89 38.19 100
2000-2001 14.29 0.00 85.71 100
2001-2002 56.27 19.43 24.00 100
2002-2003 45.46 20.37 34.17 100
Source: Complied Annual Report of P.C.D.F., Lucknow.
It is clear from the table that sundry creditors share is
increasing. In other hand deposits and securities present a mixed
trend. It is clear by analyzing table that deposit and securities share
decrease in every next year. Share of deposits and securities was nil
in the year 1996-97, 1997-98, 1998-99 and 2000-2001 and was
next least upto 5% and was highest upto 50% in between the study
period of 1990-91 to 2000-2003 and current liabilities and
provisions present an different picture in the table that it was least
in the beginning of the study period but after that it present
increase decease trend and at lat in the year 2000-2001 it increased
upto 86% and in between in the year 1996-97 and 1997-98 it
shows 100% share of current liabilities and provisions. But after
that its share reduced upto 24% in total current liabilities. But in
the lat year of the study period that is 2002-2003 its share
increased to 34%.
Working Performance:
Knowledge of development, expansion, and diversification
etc. of business activities of any institutions is known by
performance of organizing work. It also clear that how efficiently
and effectively institution perform its business activates. And where
it stands through the result of these activates. From the beginning
of its establishment Cooperative Dairy Federation is increasing its
organizing work. Under this part its present the different organizing
work of Federation. Under this part it analyses total turnover,
situation of opening and closing stocks and profit and loss.
Total Turnover:
As we know that Pradeshik Cooperative Dairy Federation
is mainly a marketing institution. It is related to the milk business
in state. Under this Federation sales milk according to pre planned
directions by receiving milk form different sources and by
processing process. Also sales milk product in the market.
Table 2.14: Turnover of P.C.D.F. (in lakh)
Year Total Turnover
Increase/Decrease Comparative (%)
(Base Year 1990-91)
Index Numbers
1990-91 7210.22 - 100
1991-92 6334.32 -12.15 88
1992-93 3462.42 -45.34 48
1993-94 4576.86 32.19 63
1994-95 4429.14 -3.23 61
1995-96 6391.91 44.31 89
1996-97 7308.85 14.35 101
1997-98 9699.65 32.71 135
1998-99 8107.85 -15.79 113
1999-00 6313.43 -22.70 88
2000-01 4193.35 -33.58 58
2001-02 3905.99 -6.85 54
2002-03 3838.38 -1.73 53
Source: Complied Annual Report of P.C.D.F, Lucknow.
Table 2.14 presents total turnover in between the study period
of 1990-91 to 2002-2003. It is clear by analyzing this table that
total turnover has increased to 0.5 times mean less than 1 times.
As its rate of increase and decrease shows different trend of rate. In
the year 1990-91 the total turnover was Rs.7210lakh but it reduced
to Rs.6334lakh in the year 1991-92 and also continued in reducing
in the next year also which was 45% in comparison to previous
year. This way it shows increasing trend upto the year 1997-98
upto Rs.9700lakh except in the year 1991-92, 1992-93 and 1994-
95. But after that it shows the decreasing trend upto the last yea of
the study period that was Rs.3838lakh in the year 2002-2003
which reduced to more than 1% in comparison to previous year. It
is clear from that table that the highest turnover of federation was
in the year 1997-98 that was Rs.9700lakh.
Stock:
The term stock includes the value of those goods which are
lying unsold at the end of accounting period. The stock may be of
two types (i) Opening stock, (ii) Closing stock.
The term „Opening Stock‟ means the values of goods lying
unsold at the beginning of the accounting period. Whereas the term
„Closing Stock‟ means the value of goods lying unsold at the end of
the accounting period. In other we can say that the goods lying
unsold at the end of the accounting period is called closing stock
and that goods are only opening stock of the beginning of the year.
Table 2.15: Opening Stock of P.C.D.F.
Year Opening Stock
(in lakh)
Increase/Decrease Comparative
(%)
(Base Year 1990-91)
Index
Numbers
1990-91 854.07 - 100
1991-92 806.65 -5.55 94
1992-93 217.51 -73.03 25
1993-94 115.47 -46.91 14
1994-95 170.56 47.70 20
1995-96 220.26 29.43 26
1996-97 173.46 -21.43 20
1997-98 216.24 24.66 25
1998-99 841.64 289.22 98
1999-2000 1130.52 34.32 132
2000-2001 326.79 -71.09 38
2001-2002 167.96 -48.60 20
2002-2003 224.31 33.35 26
Source: Complied, Annual Report of P.C.D.F, Lucknow.
Table 2.15 indicates the opening stock of Pradeshik
Cooperative Dairy Federation. It is clear by analyzing this table that
opening stock has increased to 0.26 times means less than I times
in between the study period of the year 1990-91 to 2002-2003. In
the year 1990-91 the total amount of opening stock was Rs. 854
lakh. But in the net year it reduced to Rs. 807 lakh in the year
1991-92. This way it shows the decreasing trend upto the year
1993-94 that was 47% in comparison to previous year. But in the
year 1994-95 it shows increasing trend upto 1999-2000. Except in
the year 1996-97. But again in the year 2000-2001 it reduced to
Rs. 327 lakh which decreased 71% in comparison to previous year.
But again it increased to Rs. 224 lakh in the last year of the study
period that is 2002-2003.
Table 2.16: Closing Stock of P.C.D.F. (in Lakh)
Year
Closing Stock
(in lakh)
Increase/Decrease
Comparative (%)
(Base Year 1990-91)
Index Numbers
1990-91 806.95 - 100
1991-92 769.67 -4.62 95
1992-93 137.12 -82.18 17
1993-94 165.01 20.34 20
1994-95 221.43 34.19 27
1995-96 176.08 -20.48 22
1996-97 216.24 22.81 27
1997-98 255.96 18.37 32
1998-99 191.89 -25.03 24
1999-00 326.79 70.30 40
2000-01 167.96 -48.60 21
2001-02 224.31 33.55 28
2002-03 218.90 -2.41 27
Source: Complied Annual Report of P.C.D.F., Lucknow.
Table 2.16 present closing stock of the Federation. It is clear
by analyzing the table 2.16 that in the year 1990-91 the closing
stock of Federation was Rs. 807 lakh, which reduced to more than
Rs. 769 lakh and continued in the next year also that was 82%.
This table shows fluctuating trend. That means after every two or
three years it increases or decreases. The index was 27 as assuming
the base year 1990-91. It shows the increasing trend from the year
1993-94 upto the year 1997-98 except in the year 1994-95 in
different increasing rate. After that from the year 1998-99. It show
fluctuating trend and it continued upto the last year of the study
period. In the year 2001-2002, it increased to Rs. 224 lakh but
reduced in the next year 2002-2003 that was more than Rs. 218
Lakh which reduced to 2%.
Net Profit and loss:
The base of evaluating working efficiency and performance of
any enterprises is generally profit and loss. Where profit indicates
better working efficiency and. efficient management. And loss
indicated question mark on it. But Pradeshik Cooperative Dairy
Federation is based on Cooperatives and it cannot be evaluated
correctly on the base of profit and loss.
Table 2.17: Closing Stock of P.C.D.F. (in Lakh)
Source:
Complie
d
Annual
Report of
P.C.D.F.,
Lucknow
.
Tab
le 2.17
presents
the
Federati
on‟s
profit
and loss.
It is
clear by
analyzin
g this table that in the year 1990-91 Federation bears loss. But
from the next year 1991-92 upto the year 1998-99 Federation has
profit in different increasing rate. But again in the year 1999-2000
Federation has profit in different increasing rate. But again in the
Year
Closing Stock
(in lakh)
Net Profit
Increase/ Decrease
Comparative
(%)
(Base Year 1990-91)
Index
Numbers
1990-91 71.38 - - -
1991-92 - 99.98 - 100
1992-93 - 94.94 -5.04 94.95
1993-94 - 92.96 -2.08 92.97
1994-95 - 14.01 -84.92 14.01
1995-96 - 42.58 203.92 42.59
1996-97 - 92.36 116.9 92.37
1997-98 - 66.10 -28.43 66.11
1998-99 - 13.43 -79.68 13.43
1999-00 186.63 - - 186.66
2000-01 28.49 - -84.73 28.49
2001-02 79.78 - 180.02 79.80
2002-03 - 98.82 - 98.84
year 1999-2000 Federation bears loss and continued upto 2001-
2002.
But again in the year 2002-2003 it shows profit in the
Federation. Hence, it is clear that Federation has profit. But in few
year Federation beard loss because some unit of Federation were
not properly utilized its resources. And their administrative
expenses were also increased. But at last year of study period it
shows profit to the Federation. It means after some drawbacks also
federation maintained its profit.
Conclusion:
From the above analysis it is clear that Pradeshik Cooperative
Dairy Federation is and marketing institution, which is engaged in
Dairy business. Efforts are being done to bring operation flood in
state through this Federation. Operation Flood first, second and
third are implemented through the medium o this institution. In
this way, Federation is encouraging farmers in Dairy business along
with agriculture in state to make profitable. For this way
programmes are applied. Its organization structure Federation
functions are divided according to their nature and all works are
edited by above mentioned authorities.
In the study period share capital has increased 0.84 times.
State government, top financial institutions, Dairy Federation and
Primary Cooperative Committees are included in share capital. The
share of State Government is the highest which is more than 90%
Dairy Federation comes at second place which is 9.32% satisfactory
facilities are for Reserve and Surplus. And different funds have been
for different objective. Federation gets Grants and Assistance from
different sources for encouraging milk business in the stat. Along
with this Federation also gets capital from deposits and securities.
In the study period it incrased to 0.45 times. It means in the year
1990-91 it was Rs. 523 lakh and in the last year it was only Rs. 234
lakh like other institutions Federation also gets loans on Securities
and Advances. In the study period it increased to 0.44 times. In this
way institution fixed assets are also increased to 0.44 times. In this
way institution fixed assets are also increasing. In the year 1990-91
its total fixed assets was Rs. 351 lakh which was Rs. 223.5 lakh in
the year 2002-2003. This way it has increased to 0.63 times mean
less than 1% current assets has been also increased. It is clear by
analyzing this table that fixed assets are increased more
comparison to current assets. It is an indication of progress of
Federation.
Like any institution Federation also invests and deposits. It
increased to 0.086 in the study period. Because in the year 1990-91
the total investment and deposits was Rs. 53 lakh but in 2002-2003
it was only Rs. 5 lakh where Federation‟s Assets decreased it same
way its liabilities has also decreased. As between the study period it
increased to 0.54 current liabilities are divided into three parts.
Sundry Creditors, Deposits and Securities and Current Liabilities
and Provisions. Sundry Creditors amount was highest in total
current liabilities.
In the year 2002-2003 Federation‟s total turnover was Rs.
3838 lakh. In the study period of 1990-91 to 2002-2003 opening
stock increased to 0.26 times. It means in the year 1990-91 opening
stock was Rs. 854 lakh and in the last year 2002-2003 it was Rs.
224 lakh. And closing stock increased to 0.27 times during the
study period. As in the year 1990-91 closing stock was Rs. 807 lakh
and in the last year 2002-2003 it was Rs. 219 lakh. Federation in
expanding its working area. It is clear by the study period of profit
and loss. By analyzing this table we can say that Federation is
earning profit because in the year 1990-91 the Federation was
bearing loss of Rs. 71 lakh but in the year 20002-2003 they earned
profit of Rs. 99 lakh.
REFERENCES
1. Annual Repot of P.C.D.F. 2002-2003, Page No. &
2. From P.C.D.F. Magazines (other source of P.C.D.F.).
3. Annual Report of P.C.D.F. 2002-2003, Page No. 9.
4. Historical Review of P.C.D.F. Report.
5. Annual Report of P.C.D.F. 2002-2003, Page No.7.
6. Motihar, M. and Pawan Jaiswal, Principles of Management.
Kayani Publishers, New Delhi, 2002, Page No. 150.
7. Ibid, Page No. 151.
8. Bhushan, Y.K., Business Organization and Management, S.H.
Chand, New Delhi, 2002, Page No. 241.
9. Bishwambhar Jha, Fudamental of Industrial Organization and
Management, Novelty and Company Tarabhawan, Patna,
2002, Page No. 465.
10. Jagdish Prakash, Business Organization and Management,
Kitab Mahal, Allahabad, 203, Page NO. 301.
11. Bishwambhar Jha, Fundamental of Industrial Organizatinon,
Opcit, Page No. 473.
12. Motihar, M., and Pawan Jaiswal, Principles of Management,
Opcit., Page No. 173.
13. Bhushan, Y.K., Business Organization and Management,
Opcit, Page No. 251.
14. Jagdish Prakash, Business Organization and management,
Opcit, Page No.305.
15. Dr. Gupta, O.P., Indian Company Law, Sahitya Bhawan
Published and Distributors Pvt. Ltd., Agra, 2004, Page No.
234.
16. Annual Report of 2000-2001.
17. Dr. Gupta, O.P. Indian Company Law, Opcit, Page No. 250.
18. All tables from Complied Annual Reports.*****