Sumul district co-operative milk

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Industrial Training Report

Of

SURAT DISTRICT CO –OPERATIVE MILK

PRODUCERS UNION LTD

**** Prepared By :-

Shiroya Harshida A.

Roll No. :- 39

Exam Seat No. :-

**** Submitted University :-

Saurashtra University

**** Guided By :-

Prof. B.P. Vekariya

****Institute :- SHREE MAHILA B.B.A. COLLAGE

Street No.2, Sardarpura,

Joshipura – Junagadh -362 002

Shiroya Harshida A.1



DECLARATION

I Undersigned Miss. Shiroya Harshida A. Student of

S.Y.B.B.A. Here by declare that all the details in the report on

“SURAT DISTRICT CO-OPERATIVE MILK

UNION LTD” (Surat)

Is purely my own work and should not be given to any other

university or institute for any other purpose.

Place: Junagadh

Date:

______________________

(Miss Shiroya Harshida A..)

Roll no 39 (S.Y. BBA)




Acknowledgement

It is my pleaser to present this industrial training report of

“SUMUL DISTRICT CO- OPERATIVE MILK PRODUCERS’

UNION LTD.”, which is situated at Surat, before you. I hope that will

acknowledges this report

I am very thankful to Shri Manubhai Amthabhai Patel

(Chairman managing of this unit) for giving the permission for

Industrial training.

I am also thankful to various perssonel of the unit & training

partners for their good co –operative during my training.

My special thanks to the principal to this institute Dr. D.V.

Gondalia for providing me this opportunity. I am also sincerely thanks

to the Professors of my college for giving their valuable time in

providing me the guidance.

Thanking you.

Place:- Junagadh

Yours faithfully,

Shiroya Harshida A.

S.Y.B.B.A. (Roll No. 39)




INDEX: ~

Sr. No. Particular Page No.

1. General Information 6 to 282. Personnel Information 29 to 52

3. Marketing information 53 to 87

4. Financial Information 88 to 113

5. Bibliography 114




****INDEX ****

Sr. No. Particular Page No.

1.1 Introduction 8 1.2 History &Development of the Unit 10

1.3 Name & Address of the Unit 12

1.4 Milestone of Sumul Dairy 13

1.5 Sumul’s Mission &Vision

Statement

14

1.6 Work area of Sumul 16

1.7 Time keeping System 17 1.8 Objective of Sumul 18

1.9 Location of Office 19

1.10 Administration Building 20 1.11 Milk production Cycle 211.12 Future Plan of Sumul 28




1.1 Introduction

The Sumul district co-operative milk producer’s union

ltd (SUMUL Dairy) is a co-operative endeavor committed to

help marginal farmers and down trodden tribal to lead to a

healthy life and better standard of living through scientific

animal husbandry practices. Today’s Sumul enjoys the

pride to serve milk and milk products to populous Surat city

and surrounding towns of it.

Sumul is holding strong brand equity in surat district

and command more than 70% of the liquid milk in surat city,

to make the distribute system fast and the delivered milk in

time they have as many as 6ilk transportation routes and

1531 agents (1386 regular and 145 full time)

The area of operation of sumul is the entire district of

sumul. The present milk procurement of 160.929,736 liters

of milk annually makes it the third largest union in the state

after the AMUL and Mahesana dairy. The present market of

Surat for liquid milk is around 4.5 lack liters per day. This

has necessary active development of “by product” market.




Products so far introduced are paneer, ghee, flavored milk,

sweet, shrikhand, lassi, butter milk etc.

Sumul consist of 13 board of directors one each of 13

talukas of Surat district and they from themselves elect the

chairman. The total numbers of employees are about 1100

besides the contract workers.

Under sumul’s activities, Surat district is now firmlyestablished as a milk shed and is growing from strength to

strength.

Hence, the Surat district co-operative milk producer’s

union ltd, SUMUL is trade name and literally meaning

sound process, came in to existence on August 22, 1951.

The formal commissioning of the pasteurization plant on

March 17, 1968 was a turning point fro sumul.




milk at low cost & so the co-operatic of development programs

started.

In the year 1998-99 two million tone of milk was produced

in Indian & Indian becomes the world’s first milk producing

country. Which is more then 68 million of American. So it was

called “white revolution”

SUMUL has three chilling center at Bajipura, Navi Pardi and

Uchchal for ensuring safe delivery of raw milk to SUMUL where

the milk is processed and pack into various type of liquid milk and

by product to improved the nutritional feed given to the cattle at

village level, the co-operative has establishment a cattle feed

factory at chalthan. Sumul also has oil refined oil at the village of

DCS level.




Company profile

Name of the unit : SURAT DISTRICT CO - OPERATIVE MILK

PRODUCERS’ UNION LTD.

Registered office : Post Box No. 501, Sumul dairy,

Surat -395 008 [Gujarat India]

Reg. No. : P.D. 688 Dt. 22-8-1951

Location : Post Box No. 501, Sumul dairy,

Surat -395 008 [Gujarat India]

Ph. Office : 0261- 2537693, 2531137, 2531666

Fax : 0261 – 2533572

Email : [email protected]

Website : www.sumul.com

Main product : milk

Form of organization: co-operative society

Scale of organization: Large scale industry

Build up area : 15000 acre land

Chairman : Shri Manubhai Amthabhai Patel

Directors : S.K.Pithawala

Paresh Jagani

Mansukh Patel

Member Societies : 639

Symbol :


http://www.sumul.com/

http://www.sumul.com/



Organization structure

Organization is a group of people that achieves some specific goals and

objective with authority flowing from top to bottom level and

responsibility flowing from bottom level to top level. Organization can

also be defined as identifying and grouping the work to be performed.

With the help of systematic organization, co. can work more effectively.

The organization makes the delegation so that the work becomes easier.

It also makes the chain between the people. In this way everyone has to be responsible for the work.

Sumul is the society which has great organization structure. It is a huge

family of human resources. This society is the ideal example of great

organization. There are various departments for managing the work of

the resources. This kind of departmentalization controls the activities of

the society by saving time, money and manpower. So, basically there

are five kinds of organization structure which are as under :-

Line organization structure

Functional organization structure

Line and staff organization structure

Project and matrix organization structure

Informal organization structure




Organization chart

Shiroya Harshida A.

Bord of Director

Chairman

Senior Executive Officer

Managing Director

Junior Executive Officer

Senior Assistant

Junior Assistant

Technician

Workman

14



1.4 Milestone of Sumul Dairy




1.5 Sumul’s Mission & Vision Statement

“WE ARE SOCIALLY RESPONSIBLE ORGANISATION

WITH COMMITMENT TO CONSUMER DELIGHT AND

RESPECT FRO ALL. WE BELIEVE IN GROWTH AND

CONTINUOUS IMPROVEMENT THROUGH TEAMWORK,

TRUST & EXCELLENCE WITHOUT COMPROMISING OUR

HONEDTY AND INTEGRITY”

It is quite obvious from the mission statement of the Sumul;

the organization is committed to customer satisfaction and

believes in providing the highest quality of product to them.

Infect, for ensuring highest quality product, it has already put

into practice TPM and TQM tools in the organization besides

many Quality Circle (QC) and Small Group Activity (SGA)

operating in the organization to achieve the vision and

mission.

SUMUL VISION 2011:

Vision is a dream created in our working hours of the

organization. It can be described as a living picture of future. It

is inspired by the values that we cherish




Year 2008 Year 2009

TURNOVER RS.551 Corers RS. 522 Corers

MILK

PROCUREMENT

7,51,000 Liters 8,50,000 Liters

MILK SALE 5,51,000 Liters 5,51,000 Liters

QUALITY International std.

ISO 9000

HAACCP

International std.

ISO 9000

HAACCP

PRODUCTION

COST

Minimum

Production cost

Minimum

Production cost

DISTRIBUTION

SYSTEM

Consumers

oriented, Quick

and effective

Consumers

oriented, Quick

and effective




Production department




INTRODUCTION

Production is one of the most important processes in manufacturing unit

production based on creation of a product from raw material, which

would specify the customer.

Production is a process, which help in accomplishing organizational

goods. Production manager assures the accomplishment organization

goals.

Production means creation of activities and covers all the activities of

procurement, allocation and utilization of reassures such as labour,

energy, materials, etc.

Production management is a process of effectively programming

coordinating and controlling process.

Production system is regarded as a sub system of business firm

manufacturing plans are based on the realistic sales or demand forecast

arrived of thought market research.

SUMUL is engaged in producing MILK and other milk products like

curd, butter milk, paneer, ghee, butter and sweets..




ORGANIZATION STRUCTURE

Raw material


PRODUCTION

MANAGER

SUPERVISOR

SKILLED WORKERS

SEMI-SKILLED

WORKERS

UNSKILLED

WORKERS



Raw material plays a key role in the quality of the product. Without raw

material, production process cannot be started. If the raw material used is of

low quality than the quality of the product will also be low. As such more

weight must be put on the quality of raw material.

In sumul raw material like milking machines and other latest equipments for

pasteurization, clarification and standardization of milk are needed.

Milk Products




Milk is the mail product that is produced by the sumul. Milk

acts as a raw material for the other products of sumul like

curd, butter milk, paneer, etc. Sumul processes variety of milks such as whole milk, toned milk, cow milk, etc because

the demands of milk are different from customer to customer

sumul tries to fulfill all the demands, e.g. people who want

‘Malai’ purchases whole milk standardize milk is used for tea.

A white or yellowish fluid secreted by the mammary gland of

animals. It consists of emulsion of fat in water with casein and

other proteins, milk sugar and inorganic salts. The solids other

that fat include protein, carbohydrates, water-soluble, vitamins

and minerals.

According to the prevention of food adulteration rules

1995,the percentage of milk, fat and SNF in different classes

and designation of milk specified respectively are as follow:

Buffalo milk (5%-6% and 9%), cow milk (3%-4% and 8.5%)

recombined milk (3% and 8.5%) double toned milk (1.5%-9%)

and skimmed milk (not more than 0.5% and 8.7%) the fat

percentage for the milk of Cow and Buffalo varies from state to

state and is detailed is DFA rules.


MILK

VITAMIN

A

D

E

K

SNFFAT

PROTEINMINERALS

IRON

CALSIUM

LECTORS



Name of Raw Material or Ingredient:

1. Raw Milk 2. Skim milk Powder

3. Pasteurize white Butter

4. Pasteurize Skim Milk

5. Pasteurize Cream

6. LDPE Film

7. Water




Pure Ghee:

A Product obtained from milk, cream or butter fromvarious animal species by means of processes, whichresult in the total removal of moisture and SNFcontents, with an developed physical structure.Clarified butter fat with a strong flavor is prepared byheating makkhan.


1. Pasteurize White Butter/White Butter2. Sour Butter3. Hd:Ld:Hd4. 3 layer Polyethylene Bag5. Tin (Lacquered) 15kg size6. 1kg/2kg Size With Corrugated Box




Panner :

Milk is heating to boiling temperature and limejuice,citric acid, or sour whey. Paneer contain 70% moisture. The whole milk paneer should contain 50%, milk fat ondry matter basic. In skimmed milk paneer the fat ondry matter basic should not exceed 13%.

Name of Raw Material or Ingredient :

1. Pasteurized Standardized Mik2. Citric Acid3.

Common Salt4. Moralized Polyester Bag5. Pasteurized Chilled Water




Flavored Milk :

Milk standardized to a certain fat percentage to

which some flavor such as chocolate and fruit syrup isadded.


1. Homogenized Pasteurize Toned Milk

2. Sugar3. Flavor4. Color5. Glass Bottle6. Crown Cork




Buttermilk :

By product obtained after the removal of butter orcream from crud by churning or otherwise also knownas chaas.


1. Pasteurize Skim Milk2. Skim Milk Powder3. Batch Starter4. Water




White Butter :


1. Pasteurize Cream

2. Corrugated Box

3. HM-HDPE Sheet

4. Pasteurized Chilled Water




SWEETS

Shrikhand

A milk based sweets male from concentrated dahiwith a sweet and sour taste. It is a semi-soft wholemilk product prepared from dahi and resemblessweetened quark. Dahi is drained of its whey byhanging it in a cloth from 4 to 6 hours to producing asolid mass called chakka or maska. The resultantmaska is mixed with the required sugar, condimentsand flavor.


1. Pasteurize Whole Milk2. Pasteurize Skim Milk3. Surar4. Saffrom (kesar)

5. Nuts (Kaju, Badam, Pista etc)




2. Sugar3. Elaichi (Cardamom)

Peda :


1. Pasteurize Milk (Sumulya)2. Sugar3. Saffrom (kesar) Powder

4. Cardamom (Elaichi)5. Nuts (Kaju, Badam, Pista etc)6. Paper Box7. Oxygen Scavenger Poly Bag

Elaichi Peda :


1. Milk2. Cardamom




3. Sugar

Kesar Peda :


1. Milk2. Sugar3. Kesar

MalaiPuri :


1. Milk2. Sugar3. cardamom4. Ghee

5. Pista




Other Sweets

Rasgulla :

Gulabjabun:

Sumul Milk Powder :


1. Pasteurized Skimmed Milk2. LOPE film3. Kraft Paper Bag




Production process

While manufacturing any product, it is very much important

to understand its production process. If there is effective co-

ordination between man and machine than te production

process becomes more fast andeconomical and also saves

time.

Production process can be defined as “the cain of various

small and big processes which converts various inputs into

desired output.” If the becomes quick and economical, then it

hels a lot to increase turnover and profit of abusiness.

Complex outputs need complex production processes which

are also time consuming and expensive while simple output

needs less time and capital. Production process thus depends

upon the type of quality of product.




Milk Production Cycle

MILK CYCLE: ~

⇒STEP 1

A Machine milking the Cow at Village level.

⇒STEP 2

Milk Producers' Cooperative Ltd. collects the milk from

all the villages.




⇒STEP 3

The collected milk is tested against the set standards.

That insures quality of milk being received from the root level.




⇒STEP 4

The received milk is sold locally as well as transported

to the dairy for the further processing.




⇒STEP 5

The milk is tested in dairy lab. No compromises with the

quality of milk being received.

⇒STEP 6

The qualified milk is received at Raw Milk Receiving

Dock at Dairy.




⇒STEP 7

Cleanliness is always the top priority at any stage of the

milk cycle. It is called Cleaning Process.

⇒STEP 8

Milk is pasteurized, clarified, and standardized using

latest technological machines & equipments.




⇒STEP 10

Pouch filling for the last users at the Packing

Department at SUMUL.

⇒STEP 11

Packed milk stored in well-maintained cold storage of

SUMUL.

⇒STEP 12

Milk dispatched for the sales in the market of Surat from

the Dispatch Department in the SUMUL’S trucks.




Plant location

Location factor are crucial for profit maximization, in

deciding about the location of concern, the selected site or

position must minimize the cost of production as well as cost

of distribution. If the site for locating a business is

unfavourable the concern can’t be managed economically

and profitability even though the entrepreneur has the

necessary capital and capacity or management skill.in shirt

location determines to a great extent ,a company’s

profitability.




Main Dairy Plant Cilling Centrekm distance from surat

Taluka/ Tahsil Name Cattle Feed Factory

SUMUL dairy is located near railway station road in Surat. It

covers 15,000 – acre land. Sumul provides milk collection

facilities at the producer’s door in each village co-operative,

where milk is speedily, efficiently and economically transported

twice daily to its dairy plant and chilling centers for processing

and marketing.

Since the milk procurement system has been extended far

and wide in the entire district. Sumul have five chilling center at

Bajipura, Uchchal, Navi Pardi, Chaved and Dediapada site at a

distance of 50,105,25,110,146 km respectively from Surat city.

The chilled is then transferred to the mail plant at Surat railway

station road.

Plant layout

A factory is placed whre all the industrial activities are

housed. After the selection of the factory site the factory

building is constructed at the selected site. The problem of

arrangement of various departments inside the factory

building arises only after the availablilty of the floor area

covered by the walls and roofs forming the factory building.

Ideal plant layout




1.10 Administration Building: ~

Ss

1ST FLOOR

1.11 Milk Prodoction


VAHIVATIVIBHAG MANAGER (ASM)

VIBHAGAUDITOR’S

OFFICE

ACCOUNTVIBHAG

DUDH SAMPADANAND SAHKARI VIKAS

VIBHAG

COMPUTER

VIBHAG

BOARD ROOM

M.D.

OFFICE

G.M.

OFFICE

CHAIR-

-MAN

OFFICE

BOARD

SECRETARYOFFICE

AMBULANCE

ROOM

CASHCOLLEC-

-TION

VIBHAG

CASHOFFICE

MATERIALMANAGE-

-MENTVIBHAG

POSTOFFICE

TELEPHONEEXCHANGE

PURCHASEDEPARTMENT

SENIOREXICUTIVE

OFFICE



Production planning and control

The planning and control of production is one of the

important problems of production management. It is

essential that production is carried on in the best manner at

the lowest cost, and the goods are of the right quality and are

produced at the proper time. This can be ensured only

through proper planning of production.

Production control is concerned with direction and

guiding production alog the lines set up by the planning

department. It evaluates the actual performance of the

productive apparatus in the light of plans formulated by the

planners.

In SUMUL, there is acoordianation committee for this

function. It is done in accordance with demand in market.

Production planning is done by the head of the production

department. He plans everything with the help of supervisors.

Production conreol is all in the hands supervisors.

Production control is all in the hands supervisors and the

head of the production department.




Material handling

It is necessary for a company to manage the machine

and material. The machine handling equipment of SUMUL is three wheeler tempo and for material

handling company uses equipment such as simple

trolly, hand cart crates etc to move the material from

one place to another.

And final products are stored in storage house after

packing and labeling.




9.pollution control

Pollution means to make the environment dirty and

impute with harmful and poisonous substance. The

pollution may be air pollution, water pollution, noise

pollution etc. Government has now made compulsory

for all the industries to take measures regarding

pollution control.

In SUMUL the problem of pollution is nil. This is

because no smoke is produced during the production

process. Also no water and land pollution is being

caused by the industry.

QUALITY CONTROL




The quality system of SUMUL fulfills the

requirement for the management system that focuses on

the effectiveness of the system in meeting customer

requirement.

Final inspection of goods is necessary to maintain

the quality of the product in SUMUL. Final inspectionof goods is done by Mr. Virjibhai inspects the goods

carefully and finds it. If any defect is found in the

product they are not sold and are used in reprocessing.

There are quality and fatness testers for qualitycontrol. Even little difference is not allowed. If the

quality is not proper it is disposed off in the scrap

because their main aim is satisfaction of consumers.

Codification and identification




1.8 OBJECTIVES OF SUMUL: ~

The SUMUL Dairy was established with

the following objectives:




To provide guaranteed remunerative milk market round the

year for surplus milk.

To provide maximum return to producers.

To provide good quality Milk and Milk Product to

consumers.

To increase milk productivity at most economic rate by

providing technical input services to the producers.




1.12 FUTUTRE PLANS OF SUMUL: ~

The future plans of the organisation are

as follows:

The SUMUL Dairy shall provide proper Nutrition and Good

Health to its customers in addition to achieving customer

delight.

SUMUL introduces new Gable Top packing for Pasteurized

Standardized Milk in which Milk remains fresh for 15 – 20

days. The farmers always get maximum remuneration by selling

the raw milk. This is their common objective.




**** INDEX ****

Sr. No. Particular Page No.2.1 Introduction 31

2.2 Hierarchy of organisation 32

2.3 HR Objective 35

2.4 Man power Planning 362.5 Role of HR in Sumul 37

2.6 Human Resource Activities 38

2.7 Recruitment & selection Process 41

2.8 Training and development System 44

2.9 Performance appraisal System 47

2.10 Promotion & transfer Policy 48

2.11 Wage & Salary Structure 492.12 Customer's Satisfaction 52




2.1 INTRODUTION

Personnel management is the managements of human

resources in an organization. In fact, personnel management

undertakes all those activities, which are concerned with human

element in an organisation.

Manpower planning or personnel management is

complicated & challenging work for the management because

here manage have to handel the men who are having differentthoughts, psychological view etc. No two person are similar in

mental abilities traditions, sentiments& behaviour. They differ

widely also as groups & are subject to many & varied influences.

Therefore they need an actual handling by management

personnel.

Manpower management is most crucial job because

“Managing people is the heart & essence of being a manager.” It

is concerned with any activity relating to human elements or

relations in organisation. Thus, personnel management is a

method of developing potentialities of employees so that they get

minimum satisfaction out of their work & give their best efforts to

the organisation.




2.2 Hierarchy of Organization:

Shiroya Harshida A.

Bord of Director

Chairman


Managing Director

Junior Executive Officer

Senior Assistant

Junior Assistant

Technician

Workman

63



Personnel department is the key department of the any

business. Personnel department is the main part behind the

company’s success or failure. Personnel management is that

part of management, which concerned with people at work

and with their relationship within an enterprise. Its aim is, to

bring and develop into an effective organization. The men and

women who make up an enterprise and having regard for the

well being of individual & of working groups to working groups

to enable them to make their best contribution to its success.

The meaning of the personnel dept., labor management or

staff management means quite simply the task of dealing with

human relationship within an organization.

Personnel management is a continuous process. It cannot

stop. Personnel management is a never-ending process. It

helps in achieving objectives of company. This is done by

proper perform of personnel function like recruitment,

selection, training & development, labor activity, motivation,

welfare etc. it also helps to keep a smooth relationshipbetween employers & employees.

Sumul believes that the most significant resource are its

Human Resource and Sumul’s Success in the long run

depends very much on the quality of its human resources.

Human resource comprise the aggregate of employee




attributes including knowledge, skill, experience and health,

which are presently available to the organization for the

achievement of its goal, objectives and service to the society.




2.3 HR Objectives :

To develop and sustain core values.

To develop business leaders fro tomorrow.

To provide job contentment through empowerment,

accountability and responsibility.

To build and upgrade competencies through virtual

learning, opportunities for growth and providing

challenge in the job.

To foster a climate of creativity, innovation and

enthusiasm.

To enhance the quality of life of employees and their

family.




2.6 Human Resources Activities:

The main activities of this department are selection, training,

recruitment, and welfare actives.

To diffuse the effect of Global Competition, Sumul has

adopted the latest concepts of management practices and

provided appropriate training with the help of leading institute

from time to time for up-gradation & development of its Human

Resource. Some of the efforts of Sumul to achieve this are:

Shiroya Harshida A.

Employee Personality Development (Attitude,

skill & Knowledge)

1995

Self Development (Self management

Leadership, Meditation)

1995

Total Quality Management, QC, SGA, Kaizen,

SQC

1996

Total Productive Maintenance 1999

Meditation Hall 2000

69



Other Activities :-

1. Washing facilities :-

The facility of washing clothes is provided to all the

employees

2. Store & Drying facility :-

The full time workers are given personnel lockers to

store their things and also facility for drying clothes.

3. Canteen facility :-

it is providing employee to take Break-fast, Lunch and

Dinner at economic price.

4. Rest room :-

It is also provided to take rest during the Lunch

hours.

5. First aid facility :-

It is given for quick remedy of employees. When any

accident occurs during the working hours of the

organization.

6. Vehicle parking space :-

It is provide for employee, worker and visitors

separately.




7. Accommodation :-

Organization is providing township & accommodation

facilities to employees.

8. Vehicle loan :-

It is given to Employee / Executive only.

9. Department stores :-

“KAMDHENU” department store is in the staff ready

credit society / Staff Quarters to purchase all

necessary items at economic rate for employee.

10. Uniforms, Shoes and Raincoats :-

Uniforms, Shoes and Raincoats are provided to all

employees and workers.

11. House rent recovery :-

House rent recovery for those employees who are live

in rental house.




Generally, two types of SOURCES are used in the

Organization:

1. Internal Recruitment:

It is generally done through promotion and training

programs.

2. External Recruitment:

Direct Interview:

By giving advertisements in the

newspapers

Employment exchange:

These agencies are providing a wide range of

services, counseling assistance in getting in

getting jobs, information about the labour

market, labour and wage rates.

Campus interview.

Advertisement.

Selection Process:

Selection is the process in which candidates for employment

are divided into two classes those who are to be offered,

employment and those who are not.

The Selection Process is concerned with determining

whether an applicant meets with all the qualification need to

perform a particular job. It means right person a right place. It

is very important because of a wrong person is selected it will




2 .8 Training and Development System

“To bridge the gap between job requirements and present competence of

an employee ”

Training is the short term process utilizing a systematic and organized

procedure by which non-managerial personal learns technical

knowledge and skill for definite purpose.

Need for Training:

*** Job Requirements.1. Technological Changes.

2. Organizational Viability.

3. Internal Mobility

Training is given in 3 Categories as :

1. Management Training.

2. Office Training

3. Senior Executive Training

The management training is given for 6 months. Officers

and senior Executives attend the management

development programmed organized by the institute.

Training is not uncommon in Sumul. It has an elaborate

training program to make employees acquire new skills and

knowledge. Both internal and external training is carried out

as and when required. Following are the data of internal




and external training programmed conducted by Sumul in

the last five years.

4. Organizational Viability.

5. Internal Mobility

Training is given in 3 Categories as :

4. Management Training.

5. Office Training

6. Senior Executive Training

The management training is given for 6 months. Officers

and senior Executives attend the management

development programmed organized by the institute.

Training is not uncommon in Sumul. It has an elaborate

training program to make employees acquire new skills and

knowledge. Both internal and external training is carried out

as and when required. Following are the data of internal

and external training programmed conducted by Sumul in

the last five years.

Number of Training Programs :-

Programs 2001-02 2000-

01

1999-

00

1998-

99

1997-

98

No. of in-house

Programs

144 53 20 - -

No. of Participants 1762 628 415 - -

No. of External

Programs

9 9 14 16 22

No. of Participants 55 31 43 55 57




Total Programs 153 62 34 16 22

Total Participants 1817 859 458 55 57

Development is the long term process utilizing systematic and

organized procedure by which managerial person lerans theoretical for

acieveing organizational goal.

In addition to this, Sumul also has the policy to sponsor

employees for higher education to various institutes. The

following table shows the number of employees sponsored by

Sumul.

No. of Employees sponsored for higher studies

Particulars 2001-02 2000

-01

1999

- 00

1998

-99

1999

-98

Employees

Sponsored for

2 2 1 - -

Advance Study continue




2.9 Performance Appraisal System:

“Performance appraisal is the systematic, periodic and an

impartial rating of an employee’s excellence in mattes

pertaining to his present job and his potential for a better job”.

After recruitment organization gives specific project to the

employee to train him. After completion of this project, it is

checked by the authorized person of the department if the

employee do not perform well then they are terminated from

the organization. Performance Appraisal System is still in

rudimentary stage in Sumul. Through Performance the top

management does appraisal or reporting head, it is short on

comprehensiveness and touches only few aspects. However

the silver lining is that in order to make system transparent

and open, evaluation is cross-checked with the employee by

HRD people and in case of some differences try to solve out

the problem




2.10 Promotions and Transfer Policy

Promotion may be defined as “it is the advancement of an

employee to a better job, better in terms of greater

responsibility, more prestige and status, greater skill and

specially increase the rate of pay of salary”.

Promotion Policy :-

The Management Trainees are given 6 month training and

later on if they perform well are promoted as provisionary and

after one year they are confirmed. Moreover promotion is

given on the basis of education obtain by different personnel .

Transfer policy :-

Transfer means to transfer the employee from one job to another without making any change in his

authority, responsibility and status.

There is not any policy for transfer, but managing director of

the organization generally takes the transfer decisions.




2.11 Wage & Salary Structure:

Some fixed amount of house rent allowance is provided for those

who live in rental house. Sumul has a fixed increment system for

each level of authority in the organization. Only one increment is

given a year. However for calculating increment for an employee,

the period of time the day of his joining. Rather month of January

and July are considered as base month for the same. For

instance, an employee joining the organization in second week of

January in 1999 would be having his next increment due in 2000

July not in January. There is also a compulsory increment every

14 and 23 year in which, the employee becomes eligible for

immediate next salary scale. Plus two increments without any

change in his/her designation. However, during last agreement,

upgraded employee have also been given designation as per

new salary scale. Recently, Sumul has revised its pay structure

to attract more young talents.




2. 12 Employement Records Kept

After the selection of employee when he

is joining the organisation, the employee has to submit a form

which contains some information regarding his personal life or

some other information which is stored in computer and is

maintained by establishment sector. This form contains the

following information:

The name, birth date, age, height, weight, passport size

photo, power of classes, marks of identification, present

address, permanent address, nationality, father’s name,

marital status, etc.

The academic data, percentage obtained in S.S.C., other

vocational qualification, past and present employment data,

language known, hobbies and interest, informationregarding accomplishment, achievement, reference, etc.

Attach certificate/Xerox copy of certificate in support of age,

academic qualification, experience, etc.




6.employee benefits and services

Employee benefits and service are very useful not

only for the but also for industries too. The

requirement for providing such services and facility

arises from the social responsible of industry. The

company allows the employees two days leave free in a

month. Even they give medical facilities. Bonuses are

given in festive months.

Dearness Allowance

Additional Dearness Allowance (ADA)

House rent Allowance (HRA)

Leave Travel Allowance (LTA) :-

Every year allowance is given to employees for traveling

any place. This amount is also fixed. Super Annuitant

Scheme (SAS) it provided after every 3 years

(BASIC+DA+ADA).

Washing Allowances (WA) :-

Rs. 20/- is provided every month as washing allowances to

worker category.

City & Travel Allowance (CTA) :-




Those who live in city are given these allowances more

than those are in the village.

Shift Allowance (SA) :-

Shift allowance is provided in following way:

PRESENCE IN ONE-MONTH ALLOWANCE (RS.)

25 & More 65

24 60

23 45

22 30

21 15

20 & Below 00

Visiting Allowance (VA) :-

This allowance is given to the entire field officers and

veterinary officer.

Bicycle Allowance (BA) :-

It is give to all permanent employee of worker category.

Scooter Allowance (SA) :-

This allowance is given to all the officers and marketing

executives.




Driving Allowance (DA) :-

It is giving to the drivers of tempos and trucks of SUMUL.

Other Components:

a) Bonus

(8.33% of BASIC +DA+ADA)

b) Funeral Fund

Rs.3000 to the ward and family of the dad.

Every month Rs1/- of all higher executives

salary is maintained for this fund

Trade unions

This is the collective group of people which forms in to union for

solving some big issues or problems occurring in the industry by

forming a big group. It represents the unity of the workers and they

form union to solve the problem and help each other.




Such unions are formed where there are many workers and where

grievance handling system is not in proper condition and where there

are lot of complains from workers. Unions are formed when there is

need of strikes by workers .

In SUMUL such trade unions rarely take place.

Collective bargaining

Collective bargianging includes forming of trade unions, when labor strikes takes

place for some specific need by worker or for some salary increment it is known as

collective bargaining.




When all the worker wants a leave but if there is no holiday then wokers can form

union and then bargain for a leave on that day.such baragaining takes place in large

units and where proper and sufficient allownes and facilities are not provided.

In SUMUL has never taken place till now as they have got very organized and

systematic grievance handling system and sufficient allowances.

Industrial relations

Industrial relation and relation between the workers are good.

There is good relation between the workers and the




management, whch is essential for smooth running of industry

and also expansion of industry.

Workers should be motivated financially or non-financially and

also good-working condtions should be provided they should be

respected and honored and treated as family members this

increases job satisfaction so for this uniy concerned it is medium

scale unit and all the workers are equal and none of them are

superior together.

Objectives of industrial relation :-

To safeguard the interests of labour and of management by

securing the highest level of mutual understanding and

goodwill among all those sections in the industry which

participate in the process of production.

To avoid industrial conflict and develop harmonious

relations, which are an essential factor in the productivity of

workers and the industrial progress of a country.

To raise productivity to a higher level in an era of full

employment by lessening the tendency to high turnover and

frequent absenteeism.

To eliminate, as far as possible, strikes, lockouts by

providing reasonable wages and improved living and

working conditions and fringe benefits.

To establish government control of such plants and units as

are running at aloss or in which production has to be

regulated in the public interest.




Greviance handling system

Grievances handling is an important tool for solving the problem

for employees. Broadly speaking complains effecting on eor more

workers consisted grievances. A complains may be related to the




quantum of wages, the maker of payments leave, working

condition, promotion, transfer etc.

In SUMUL, following steps are followed for handling emplying

grievances :-

Any employee can approach his immediate supervision for

and complain relating to his work and working conditions.

The supervisor will investigate complain and consult with

his department head and gives replay within 3 days to 1

week.

If the employee is still no satisfied, he approaches factorymanager the reply given by him will be final.

Even if the employee isn’t satisfied then he apparoaches

the manager through trade union of tries to settle on the

basis of arbitration.

A person is appointed as arbitrator and the reply given by

him accepted by the management as well as employees. But until now as such grievances has taken place. Here

sometimes grievance took place but due to managerial

actually. The management takes active action and let the

grievances to be solved.




**** INDEX ****

Sr. No. Particular Page

no.

3.1 Hierarchy of Mkt. Department

3.2 History of Indian Marketing Milk

3.3 Objectives Of mkt Department

3.4 Sumul Milk Mkt System

3.5 Prising Police

3.6 Promotion Policy

3.7 An Overview Of Sumul Product

3.8 Advertising

3.9 Distibution Channel

3.10 Study Of How Customers Orders Are

Prossed

3.11 Detail Of Competitors In Milk Products

3.12 Customers Satisfaction




3.1 Hierarchy of Marketing Department

Shiroya Harshida A.

Managing Director


Junior Executive

Senior Executive

Senior Assistant

Junior Assistant

Workmen

92



Human needs, human necessities have no end. The aim of

business activity is to acquire wealth, then to convey it into

desired forms and to make the final product available for exchange for the satisfaction of human needs. These all

activities fall under industry commerce and trade. These three

branches have one common function i.e. exchange function.

This important and powerful function is known marketing.

‘Marketing is a Social management Process by which

individuals & groups obtain what they need & want through

creating, offering & exchanging products of value with others.’




3.2 History of Indian Market Milk Industry

Beginning in organized milk handling was

made in India with the establishment of Military Dairy Farms.

Handling of milk in Co-operative Milk Unions established all

over the country on a small scale in the early stages.

Long distance refrigerated rail-transport of milk from Anand

to Bombay since 1945.

Pasteurization and bottling of milk on a large scale for

organized distribution was started at Aarey (1950), Calcutta

(Haringhata, 1959), Delhi (1959), Worli

(1961), Madras (1963) etc.

Establishment of Milk Plants under the Five-Year Plans for

Dairy Development all over India. These were taken up with the

dual object of increasing the national level of milk consumption

and ensuing better returns to the primary milk producer. Their

main aim was to produce more, better and cheaper milk.




3.3 OBJECTIVES OF MARKETING DEPARTMENT: ~

The following points show the different

objectives of marketing department:

To monitor and measure consumer satisfaction half

yearly.

To monitor and measure the performance of service

provider quarterly.

To appoint 5 new milk agents per month in Surat district in

order to meet the need of consumers and to meet milkeasily available to customers.

To conduct 25 milk awareness schools education

programs in the year 2004-05 at various schools within

Surat city and district.

Month wise and product target plan and evaluation.

Monitor and measure consumer complaints and solve it

within 2 days and feed back to management.

To monitor the product and the storage condition including

GMP and distributors parlor retailers levels.

Training and awareness to customer regarding ISO-9000,

ISO-14000, HACCP, GMP and Sumul products about

1000 customer per year.




Utilization of Agent’s family, labour and residential

place and hence very economic operation for them

and the Dairy.

Operational convenience to deliver milk and

off tack of crates etc. from these permanent places at

any time, including odd hours.

Familiarity of the Agents with locality

and vice-versa and hence smooth dealing under mutual

confidence.

The institutional buyers include hotels, restaurants, canteens,

hotels, charitable institutions, milk vendor’s etc. who enter into

contracts for purchase of milk for the entire year and receive

milk as per the contract, twice-a-day, in sealed cans, through

the contractor’s milk routs and make the full payment to the

Dairy Representative just at the time of delivery of milk to

them.

The contractor are responsible for any shortage,

breakage OR pilferage of milk and material occurring during

transportation. While the Agents hold the responsibility of any

such incidence occurring at their level. There is regular,

assured and smooth in-flow of cash from milk sales from the

Agents to the Dairy’s Cash Collection Centers on day-to-day

basis without involving a bank for collection of sales-proceeds

and maintaining individual accounts. The Agents sale milk




delivered to these Agents during the day and they develop the

sale-proceeds daily at the nearest Cash Collection Centers of

the Dairy. The Dairy runs these Centers for all 365 days in a

year for regular day-to-day receipt of cash amount. For any

default on the part of the Agent, such as non-payment or

short-payment of cash, the Dairy takes corrective action

almost instantaneously.

Sumul also encourage a small Savings Scheme for the Agents

by deducting a particular amount from the commission every

month and transferring the same into their deposit amount,

thereby allowing the deposit to build-up every month, which

gets additional security to the Dairy as well as to Agents. Any

amount in excess of three times, the realization from the daily

sales can be withdrawn by the Agent any time during the year.

Currently the commission of 40 paise per liter is paid to the

Agent.




200 ml pouch 31

White Butter 15 kg 1695

500 gm 60

Jome 200 ml bottle 8200 ml pouch 5

Paneer 1 kg 105

200 gr 22

Ilichy Peda 500 gr 59

250 gr 30

Kesar Peda 500 gr 79

250 gr 40

Malai Puri Peda 250 gr 36

Primium Tea 500 gr 62

250 gr 33

100 gr 14

Silbver Tea 500 gr 71

250 gr 39

100 gr 16

Ilichy Shrikhand 500 gr 40

Kesar Shrikhand 500 gr 45

100 gr 10

3.6 Promotion Policy

Promotion activity mainly consists of advertisement. Sumul

is a cooperative sector and so the advertisement budget is

quite less. However Sumul dairy spend nearly 20 to 25 lakh on

the advertisement. The contract of advertisement is with the

Venus ads. Here advertising is done through hoardings,

banners, wall painting, newspapers, and stickers etc. Sumul

as part of promotion activity holds “Sumul healthy baby




contest” on regular intervals. The participation is increasing

every time the contest is being held. Here every one is given

information about product of Sumul and their views regarding

the Sumul product. What change they want? Which other

product they want? Are also being asked shop painting is also

promotion activity carried on by them.




3.7 An Overview of SUMUL Product

Milk Products :-

Milk is the mail product that is produced by the sumul. Milk

acts as a raw material for the other products of sumul like

curd, butter milk, paneer, etc. Sumul processes variety of

milks such as whole milk, toned milk, cow milk, etc because

the demands of milk are different from customer to customer

sumul tries to fulfill all the demands, e.g. people who want

‘Malai’ purchases whole milk standardize milk is used for tea.

A white or yellowish fluid secreted by the mammary gland

of animals. It consists of emulsion of fat in water with casein

and other proteins, milk sugar and inorganic salts. The solids

other that fat include protein, carbohydrates, water-soluble,vitamins and minerals.

According to the prevention of food adulteration rules

1995,the percentage of milk, fat and SNF in different classes

and designation of milk specified respectively are as follow:

Buffalo milk (5%-6% and 9%), cow milk (3%-4% and 8.5%)

recombined milk (3% and 8.5%) double toned milk (1.5%-9%)

and skimmed milk (not more than 0.5% and 8.7%) the fat

percentage for the milk of Cow and Buffalo varies from state to

state and is detailed is DFA rules.


MILK

VITAMIN

A

D

E

K

SNFFAT

PROTEINMINERALS

IRON

CALSIUM

LECTORS



Types of Milks :-

Name FAT (%) SNF (%)

Whole Milk 6 9

Toned Milk 3 9

Cow Milk 3.5 8.8

Skim Milk 0.07 9.3

ESL Milk ----- -----

Standardize Milk 4.5 9

Buffalo Milk 5.5 9

PSM 4.7 8.8

Sumulya 6.2 9.1

Pasteurized standardized milk:




Panner :

Milk is heating to boiling temperature and limejuice,citric acid, or sour whey. Paneer contain 70% moisture. The whole milk paneer should contain 50%, milk fat ondry matter basic. In skimmed milk paneer the fat ondry matter basic should not exceed 13%.


6. Pasteurized Standardized Mik7. Citric Acid8.

Common Salt9. Moralized Polyester Bag10. Pasteurized Chilled Water




Shrikhand

A milk based sweets male from concentrated dahiwith a sweet and sour taste. It is a semi-soft wholemilk product prepared from dahi and resemblessweetened quark. Dahi is drained of its whey by

hanging it in a cloth from 4 to 6 hours to producing asolid mass called chakka or maska. The resultantmaska is mixed with the required sugar, condimentsand flavor.


9. Pasteurize Whole Milk10. Pasteurize Skim Milk11. Surar12. Saffrom (kesar)13. Nuts (Kaju, Badam, Pista etc)14. Poly-Propylene Cups15. Sealing Foil16. Corrugated Box

Kesar Dry Fruit Shrikhand





7. Chakka8. Sugar9. Kesar10. Almond11. Cashew nuts12. Kismis

Elaichi Shrikhand





4. Chakka5. Sugar6. Elaichi (Cardamom)

Peda :


8. Pasteurize Milk (Sumulya)9. Sugar10. Saffrom (kesar) Powder11. Cardamom (Elaichi)12. Nuts (Kaju, Badam, Pista etc)13. Paper Box14. Oxygen Scavenger Poly Bag

Elaichi Peda :





4. Milk5. Cardamom6. Sugar

Kesar Peda :


4. Milk5. Sugar6. Kesar

MalaiPuri :





6. Milk7. Sugar8. cardamom9. Ghee10. Pista

Other Sweets




Rasgulla :

Gulabjabun:

Sumul Milk Powder :Name of Raw Material or Ingredient:

4. Pasteurized Skimmed Milk5. LOPE film6. Kraft Paper Bag

Other Products :




3.9 Channel of Distribution :

1. Direct

2. Indirect

1. Direct Distribution Channel :

Sumul is handling 1900 outlets for selling their buttermilk,

tea and sugar.

2. Indirect Distribution Channels :

Sumul is distribution various products that are milk & other

than milk there are 3 major distributors in Surat city & 19

distributors in rural areas. All dairy co-operative society acts

as a distributor for all Sumul products. In Surat city Sumul is

creates 3400 outlets; Sumul has their own 44 milk parlors

which are in direct contact with the customer.

Information technology growing very fast and Sumul

always ahead in technology. Customer should be got

advantage of these technologies for this reason Sumul

Started online shopping facility to Direct Customer as well

as Distributor and parlor also net facilities like.

Shiroya Harshida A.

Agent Customer Dairy

117



Direct Customer www.sumuldairy.com

Distributor and parlor www.b2bsumul.com


http://www.sumuldairy.com/

http://www.b2bsumul.com/

http://www.sumuldairy.com/

http://www.b2bsumul.com/



3.10 Study of How Customer Orders are Processed

There is a simple order processing

system of the organisation:

First of all distributors get orders from retailers.

Then, distributors note the order in order note.

Then, the dispatch note is made.

According to dispatch note items are arranged and shift it to

the transportation vehicles and send it.




3.11 Details of Competitors in Milk Products

SUMUL is producing many milk products

like ghee, milk powder, panner, butter, dahi etc. So, there are

several competitors in milk products against SUMUL.

COMPETITORS COMPETITION IN MILK PRODUCT

NESTLE GHEE AND MILK POWDER

BRITANIA DYNAMIX GHEE

AMUL SHREE KHAND, FLAVORED MILK,

GHEE

SHUFFLE PANNER

SAGAR GHEE, PANEER, MILK

INDIANA GHEE

VARDHAMAN GHEE

GOKUL GHEE




3.12. Customers Satisfaction

Needs:

Hording & banners of Sumul products are used for

advertisement.

Change have been done in packing & slogans of few

production

Door to door advertisement is done for new products.

Facility of taking loans from bank for vehicles &refrigerators are given to agents.

The schoolboys & girls, who are the future customer,

are educated about Sumul milks & milks products &

its purity.

A mobile van with facility to test milk, show films to

customer & address public regarding the hygienicaspects of Sumul milk.

Cash center has been opened in different areas &

through bank so that the agent can deposit their cash

daily.

Feedback

After personal visit to customers & explaining the

causes of complaint.

Replacement is given for storage milk or low weight

milk pouches.




**** INDEX ****

Sr.No. Particular Page No.

4.1 Hierarchy Of Finance Department 90-91

4.2 Objectives 92 4.3 Sources Of Finance 93

4.4 Activities F.D 94

4.5 Details of Competitors in milk

production

95

4.6 Costy System 96

4.7 Relationship Of F.D With 97

4.8 Paymant Process 99

4.9 Treasury Operation 1014.10 Organisation Structure Of Finance 102

4.11 Capital Budgeting 103

4.12 Analysis Of P&L A/C And Balance

sheet By Ration Analysis

106




4.1 Hierarchy of Finance Department :

Shiroya Harshida A.

Managing Director

Material Manager Account Manager Finance Manager

Assistant Manager

126

Senior Executive

Junior Executive

Senior Assistant

Junior Assistant

Workmen



Finance management is that managerial activity which is

concerned with the planning and controlling of the firm

financial resources. Still today it has no unique body of

knowledge of its own and draws heavily or economic for its

theoretical concept.

“Finance management means the use of such managerial

function as planning and control to undertake finance

function.”

- Earnest Walker

Sumul is the co-operative so it has not special financial

department. Sumul require a lot of funds for meaning its

working capital needs and other obligations. It manages its

working capital needs through internal funding only. There is

regular, assured and smooth in flow of cash from milk sales

from the agents to dairy’s Cash Collection Centers on day-to-

day basis. The dairy runs there centers for all 365 days

without fail. Intact there is a separate cash recovery

department in the organization to look exclusively this aspect.

Because of its excellent cash collection system. Sumul

generally does not face any difficulty in dispensing amount to

the producers every month and meeting other obligations.

However, for the expansion work and setting up new projects,

it takes loans from NDDB




4.2 Objective of Finance Department

There is no separate department called finance in SUMUL.

They work together. The objectives of the accounts and

finance department are as follows:

To maintain Working Capital at minimum level compared to

last year.

To prepare Balance Sheet and Profit and

Loss A/C.

To monitor and measure debtors (% wise)

To monitor and measure internal customer satisfaction.




4.5 Activities of Finance Department

1. Planning & budgeting of financial resources.

2. When financial resources is not that time taken loans.

Issuing shares.

3. Issuing financial resources to different department. Working

capital managing

4. Balance sheet & Annual general prepared. Accounting

management.

5. Cash management

Annual Business Plan:

The annual business plan is prepared by taking the

information regarding sales of every product. The sales officer

compile these data taking into consideration growth rate of city

population, per capital consumption so as to arrive at overall

market size and r=targeted market sale for Sumul product, for

the effectiveness of annual business plan the data regarding

marketing channel, and product mix are needed.




4.6. Details of Competitors in Milk Product

1. Product mix plane

2. Marketing channels

3. Manpower requirement

4. Estimated investment

5. Institutional demand

6. Segment wise demand estimation

7. 5 Years procurement analysis8. 5 Years procurement capacity

9. Urban population demand




4.7 Cost System

Cost is one of the main factors affecting finance

department. There are lots of control techniques

through which companies can control their cost.

Costing is the factor that affects the pricing as well as

profits of the company. If the costs are controlled then

the company can fix competitive price and achieve

targeted returns. If the company is able to get the cost

at minim um level then can get an additional benefit

over their competitors. To control Cost Company might

have to:

1. Replacement of worm out machines and

equipments with new ones.

2. Make or buy decision

3. Extension of existing production plant.

4. By having latest technology machines and

equipment.

5. By producing large quantities of products.

6. Controlling the inventory levels.

7. To do investments where maximum returns can be

achieve.

Cost Structure of Product:

Production cost

+ Transport expenditure

+ Profit Margin

+ Commission




------------------------------

Cost




4.8 Relationship of Finance Department With

Marketing

The job of marketing department is to boost up the

sales and increase the profit of the company.

Therefore it is essential for the marketing department

because to continue with any department one surely

needs finance. The main function of marketing

department is to explore and research the market so

that company can develop itself. Finance is also

required to train the marketing staff to perform its

functions properly. Development and malignance of

new or existing products or services requires finance.

Finance assists marketing in promoting the product

moreover it also helps in fixing competitive price of aproduct. In today’s highly competitive market it

becomes unavoidable to ignore finance, through

finance proves to be a base for marketing they are

interrelated with each other by ‘pricing’ {one of the 4

p’s of marketing}

In this company finance assists marketing activities by

providing incentive schemes, free gifts, literatures, etc

for promotional activities. It is useful in exploring and

making a place in the competitive market. The

companies’ distributors have to bare the major




marketing expenses as they are given the

responsibility of marketing (Promotion).




Production:

Production and finance department are interrelated

with each other. Finance is required for the production

activities of the firm. It is required to keep the cost in

control so that finance is used economically and

judiciously. Main functions of the finance department

are to minimize cost of production. Production and

finance department are to make decisions whether to

buy or make a product. To increase product lines alsofinance is required.

The company requires finance for setting up of plant,

buying machineries and equipments, capital

expenditures, etc. obviously the company will also

made finance for day-to-day expenses like operating

expenses, and variable expenses etc.

Personnel :

Personnel department is always heavily dependent

on finance department. Finance department requirespersonnel along with computerized systems (if any) to

run the department harmoniously.

Even through there may be computerized system

but personnel are required to manage these systems.

In this company very little amount of finance function

are undertaken do the requirement of personnel




departments limited to an extent but finance is

required to pay the personnel of the company. Hence,

we can say that personal and finance department are

interrelated with each other.

4.9 Payment Process

1. Collection of sales bills & sales data

2. Data verification with sales information

3. Feed concern data in computer

4. Feed duration data in computer

5. To pass duration entry to the computer.

To the Milk Producers

Finance department will make payment on the base

of certified & approved bills.

1. Receipt of milk collection data.

2. Verify the data with concern department & payment

for each dairy co-operative society.3. Feed all the data in computer with oracle support

4. Reduction of DCSP (dairy co-operative society

purchase) & other miscellaneous

5. Account of net amount payable to society is

prepared.




6. The payment will send by MT (Money Transfer) by

district co-operative bank.




4.10 Treasury Operation

The treasury operation of the company is panned in

such a way so that it maintains purchase cost,

production cost, inventory management and

budgeting based on the market forecast. Treasury

operation is maintained to facilitate demand and

supply condition, timely payments for purchases,

meeting contingency expenses. Proper dispatching of

the good on delivery dates and minimizing opportunity

cost. Some unseen contingency may arise such as

strike; flood fire etc. for this purpose also there way

should be made.




4.11 Organisation Stucture of Finance Department

Managing Director

MANGER ACCOUNTS MANGER FINANCE

MANAGER

DAPUTY MANAGER

SENIOR EXECUTIVE

JUNIOR EXECUTIVE

SENIOR ASSISTANT

JUNIOR ASSISTANT

WORKMAN GRADE – 2




4.12 Capital Budgeting

SURAT DISTRICR CO – OPERATIVE MILK PRODUCERS’ UNION LTD.

CAPITAL BUDGET COMPARATIVE STATEMENT FOR THE YEAR 2006 – 2007

SR.

NO.PARICULARS

BUDGET

AMOUNT

(Rs. In LACS)

ACTUAL

CAPITALLISED

(Rs. In LACS)

1 DAIRY COMPLEX (H.O.):

(A)Machinery

Building Road, etc.

558.25 252.33

172.00 304.44

2 BAJIPURA CHILLING CENTRECOMPLEX:

(B)Machinery

Building Road, etc.

50.00 78.04

40.00 87.63

3UCHCHHAL CHILLING CENTRE

COMPLEX:

(C)Machinery

Building Road, etc.

20.00 4.71

12.00 7.52

4SUMULDAN FACTORY CHALTAHN

COMPLEX:

(D)Machinery

Building Road, etc.

23.25 4.72

37.65 29.24

5 A. H. COMPLEX – VANSKUI:

(E)Machinery

Building Road, etc.

0.00 0.00

15.00 15.57

6NAVI PARDI CHILLING CENTRE

COMPLEX:

(F)Machinery

Building Road, etc.

20.00 44.40

34.00 11.21

7 NIZAR COMPLEX:

(G)Machinery

Building Road, etc.

00.00 7.09

8.00 41.76

8 NASIK UNIT – LAHE:

(H)Machinery

Building Road, etc.

101.50 88.42

56.50 15.95

TOTAL (A+B+C+D+E+F+G+H) 1133.15 977.46




BALANCE SHEET AS AT 31ST MARCH, 2006

31 – 03 – 2006

(Rs.)Liabilities

31 – 03 – 2007

(Rs.)

Authorised Share Capital:

5,00,00,000 5,00,000 Ordinary Share Rs.100 Each 5,00,00,000

Share Capital (Issued & Fully Paid

up)

1,62,88,200 3,07,919 Ordinary Share Rs.100 each 3,07,91,900

Redeemable Debenture:

12,21,500 2,114 Debenture Rs. 500 Each 12,20,500

Reserve Fund and Other Funds:

13,65,78,380 Total Funds 12,83,59,237

Loan:

4,37,07,508 N.D.D.B. (Operational Flood) 1,60,51,502

----- Gujarat Govt. Revolving Fund 9,00,000

----- Cattle Loan (I.D.B.I. Bank) 68,22,799

Current Liabilities & Provisions:

34,37,45,129 Due To Societies 37,21,15,580

9,29,93,368 Saving Societies 9,85,86,727

46,70,233 Fixed Deposits 39,36,898

6,17,74,625 Deposits 6,63,20,465

1,15,62,969 Other Liabilities 95,57,494

2,05,50,000 Provision For Income Tax 2,30,50,00011,99,56,946 Creditors 14,38,66,248

4,77,49,755 Creditors (Purchase) 9,74,68,071

1,76,22,569 Creditors (Miscellaneous) 1,78,90,876

72,06,25,594 83,27,92,359 83,27,92,359

37,60,730 Profit & Loss A/C 69,88,826

92,21,81,912 1,02,39,27,123

4.13 Analysis of P & L A/c And Balance Sheet By Ratio Analysis

CURRENT RATIO: ~

(FOR CURRENT YEAR)

Current Assets

Current Ratio =

Current Liabilities




Current Assets = Stock + Debtors + Cash

Current Assets = 22,70,17,999 + 16,78,14,076 + 29,46,01,867

Current Assets = 46,46,86,942

Current Liabilities = 83,27,92,359

46,46,86,942

Current Ratio =

83,27,92,359

CURRENT RATIO: ~

(FOR PREVIOUS YEAR)

Current Assets

Current Ratio =

Current Liabilities

Current Assets = Stock + Debtors + Cash

Current Assets = 14,96,44,750 + 9,17,13,861 + 40,86,07,524

Current Assets = 64,99,66,135

Current Liabilities = 72,06,25,594




Debt Equity Ratio indicates the relationship

between loan fund and net worth of the company. a Debt Equity Ratio of 2 :

1 is the norm accepted by the financial institutions for financing of projects.

A Debt Equity Ratio of Current year is 0.013 where as during the year 2003

– 2004 the Debt Equity Ratio is 0.02. A declining Debt Equity Ratio is

usually taken as a positive sign reflecting on increasing cash accrual and

debt repayment which is good sign for SUMUL. Thus, SUMUL’S debts are

decreasing.

LONG TERM FUND TO FIXED ASSETS: ~

(FOR CURRENT YEAR)

Long Term Fund

Long Term Fund to Fixed Asset =

Fixed Asset

Long Term Fund = Long Term Loans + Share Capital + Reserve & Surplus

+

Debentures + P & L A/C

Long Term Fund = 2,37,74,301 + 3,07,91,900 + 5,59,89,859 + 12,20,500 +

69,88,826

Long Term Fund = 11,87,65,386

11,87,65,386


23,60,61,761

LONG TERM FUND TO FIXED ASSETS: ~

(FOR PRVIOUS YEAR)




Long Term Fund


Fixed Asset

Long Term Fund = Long Term Loans + Share Capital + Reserve & Surplus

+

Debentures + P & L A/C

Long Term Fund = 4,37,07,508 + 1,62,88,200 + 4,33,48,530 + 12,21,500 +

37,60,730

Long Term Fund = 10,83,26,468

10,83,26,468


17,66,19,994

ANALYSIS AND COMMENT: ~

This ratio indicates the proportion of long term

funds deployed assets. The higher the ratio indicates the safer funds

available in case of liquidation. It also indicates the proportion of long term

funds that is invested in working capital. During the year of 2004 – 2005 this

ration is 0.50 : 1 where as comparing to previous year it is 0.61 : 1 which is

higher than Current Year. Thus, SUMUL’S funds are not safer as compared

to the year 2003 – 2004.




DEBTOR’S RATIO: ~

(FOR CURRENT YEAR)

NOTE: ~ Here there is no specification of credit sales so, whole sales is

considered as credit sales.

Debtors + Bills Receivables

Debtor’s Ratio = x 365

Total Credit Sales

16,78,14,076 + 0


4,60,06,86,233

16,78,14,076


4,60,06,86,233

Debtor’s Ratio = 13.31 days

DEBTOR’S RATIO: ~

(FOR PREVIOUS YEAR)

Debtors + Bills Receivables


Total Credit Sales

9,17,13,861 + 0


4,25,12,73,272




9,17,13,861


4,25,12,73,272

Debtor’s Ratio = 7.87days

ANALYSIS AND COMMENT: ~

In this ratio the collection period is as possible as

low. In the following calculation the debtor’s collection period for the year

2004 – 2005 is 13 days where in the year of 2003 – 2004 the collection

period is 8 days which is much lower than the current year. Here, SUMUL

can not get debts earlier as compared to previous year.




5. BIBLIOGRAPHY

BOOKS

MARKETING MANAGEMENT

BY “PHILIP KOTLER”

HUMAN RESOURCE MANAGEMENT

BY “C.B.GUPTA”

ANNUAL GENERAL REPORT OF SUMUL DAIRY FOR THE YEAR

OF 2003 – 2004 & 2004 – 2005

WEBSITES:

www.sumuldairy.com

www.google.com

Sumul district co-operative milk

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