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

11

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.

16

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

www.dairyindia.com

www.milkfeed.com

85

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