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CONTENTS * Declaration * Certificate from the plant * Preface * Acknowledgement


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

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.



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.

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.



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 cooperation 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.

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 1 Chapter Introduction of the project Objective 2 , Need, Scope & Methodology Industry Profile Dairy Industry in India Leading Brands Lead Players Dairy Whiteners Major Players 17-33 Page no. 11-16

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

Punjabs Pride : Milk Ghee Lassi Panjiri Kheer 42-47

Khoa Quality Policy Quality 48-50 51-54 55-56 Engineering Organizational Chart. Human Resource Development SWOT Analysis Strength Weakness Opportunities 60-62 57-59

6 7 8


- Threats Profit & Loss Account Manufacturing , Trading, Profit & Loss Account of 2009 2010 Balance Sheet of 2008-09 and 2009-10



11 12 13 14 15 16

Comparative Balance Sheet - Balance Sheet of 2008-09 and 2009-10 Data Interpretation Suggestions Bibliography Appendix Project Synopsis

66-68 69-75 76-77 78-79 80-82






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 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.




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 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. of



Data is obtained from important source:

Secondary data

Secondary Data

The sources of secondary data are:-

1. Corporative magazines 2. Manuals of various companies 3. Various publications 4. Books, magazines of particular clubs and newspapers


Chapter 2

Company Profile



Dairy Industry in India :India has the highest livestock population in the world with 50% of the buffaloes and 20% of the worlds cattle population, most of which are milch cows and milch buffaloes. Indias 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) Uttar and Pradesh, Gokul Punjab, Haryana, (Kolhapur). Rajasthan, Gujarat,

Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu are the milk surplus states in India. The manufacturing of milk products is obviously


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-todrink 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.


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 1996-97 2001-02 2001-02 2006-07 2004-05 2009-10 2009-10 2014-15 Lead Players The lead players in processed milk products in the market are as follows:18.5% 20.6% 11.7% 9.4% 7.4%


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 Nestles 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. undergoing Ultra Heat Treatment 22 (UHT) Creamer is fresh milk at 1400 C. Its with increased fat content (upto 12%) and is aseptically packed after

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 and 23 by railways, homes hotels and restaurants, airlines, hospitals nursing and corporate

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 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2014-15 th MT 80 83 85 86 89 91 99 95 135 183 147 160 175 190 206 224 243 263 284 307 450

Lead Foods, Mohan Food, Modern Dairy, K Dairy Leading Gagan, White Magic, Every Day. 24


Nestle, Amul, Britannia, Dynamix Diary, Sterling Agro, Haryana Milk Brands

Amul, Sapan, Vijaya Spray, Meadow, Mohan, Parag, Shweta, Malkana,

Market Growth Rates 1990-91 - 1996-97 1996-97 - 2001-02 2001-02 - 2006-07 2004-05 - 2009-10 2009-10 - 2014-15

3.6% 10.1% 8.7% 8.3% 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* Milk Production (million tones) 23.5 Mil Utilisation (Percentage) 100 Liquid Milk 28.0% Traditional Products 72.0% Ghee/Makhan (clarified butter) 58.7% Dahi (Yogurt-like) 5.2% Khoya (Partially desiccated Milk 5.0% Chhana and Paneer (unprocessed cottage 3.1%

1956 17.8 100 39.2% 60.8% 46.0% 8.8% 4.4% 1.6%

2004 91 100 46.0% 50.0% 33.0% 7.0% 7.0% 3.0% 4.0%

cheese) Western Products: Milk Powder, etc Neg Neg *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 sector, 1988-2009/ metric tonne Product Demand 1988 Ghee 100,000 Cheese 4,200 Paneer 1,000 Shrikhand 3,000 Rasgolla 1,600 Gulabjamun 3,000 Project demand 2009 200,000 15,000 16,000 5,650 6,000 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 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, Nestl 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 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 coldstorage 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)


199192 199293 199394 199495 199596 199697 199798 199899 19992000 200001 200102 200203 200304 200405* 200506

55.7 58.0 60.6 63.8 66.2 69.1 72.1 75.4 78.3 80.6 84.4 86.2 88.1 90.7 94.6

178 182 187 194 197 202 207 213 217 220 225 230 231 229






Husbandry Departments,


*Source: Production Estimate of MILK, EGG, MEAT and WOOL of the year 2004-2005

Estimates of Milk Production - State wise (000 tones) 1997State All India Andhra Pradesh Arunachal Pradesh Assam Bihar Goa Gujarat Haryana Himachal Pradesh J&K Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland 5377 5193 62 59 17 46 5442 5609 65 61 20 48 5519 5707 68 62 18 48 4761 5849 66 64 14 51 5283 6094 68 66 14 57 5343 6238 69 68 15 58 5388 6379 71 69 15 63 5506 6567 75 71 16 69 714 1167 3970 2343 724 1232 4231 2420 742 1286 4471 2532 761 1321 4599 2605 756 1360 4797 2718 773 1389 4539 2419 786 1414 3857 2111 870 # 1422 3917 2025 43 719 3420 38 4913 4373 45 725 3440 41 5059 4527 46 667 3454 44 5269 4679 42 683 2489 45 5312 4850 42 682 2664 45 5862 4978 46 705 2869 46 6089 5124 46 727 3180 48 6421 5221 48 739 2974 57 6745 5222 4473 4842 5122 5521 5814 6584 6959 7252 98 72128 199899 75424 19992000 78286 200001 80607 200102 84406 200203 86159 200304 88082 2004-05 * 90715


Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura West Bengal A&N Islands Chandigarh D&N Haveli Delhi Pondicherry Uttaranchal Jharkhand

672 7165 6487 35 4061 57 3415 22 43 4 267 36 -

733 7394 6923 35 4273 76 13618 3441 22 43 8 1 290 2 36 -

850 7706 7280 35 4586 77 14152 3465 23 42 8 1 290 1 37 -

876 7777 7455 35 4910 77 13857 3471 22 43 8 1 291 2 37 777 1025 910

929 7932 7758 37 4988 90 14648 3515 23 43 8 1 294 2 37 795 1066 940

941 8173 7789 45 4622 79 15288 3600 26 43 8 1 296 2 37 804 1079 952

997 8391 8054 48 4752 84 15943 3686 25 44 8 1 299 1 40 812 1188 954

1283 8554 8310 46 4784 86 16512 3790 24 43 4 1 303 1 41 831 1195 1330

Uttar Pradesh 12934

Daman & Diu 1 Lakshadweep 1 Chhattisgarh -

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 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 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 32

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. Nestls relationship with India dates back to 1912, when it began trading as The Nestl Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market. After Indias independence in 1947, the economic policies of the Indian Government emphazised the need for local production. Nestl responded to Indias aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestl to develop the milk economy. Progress in Moga required the introduction of Nestls 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. Nestl set up milk collection centres that 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 Nestl Agricultural Services.


Nestl 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, The services Company continuously and focuses other its efforts to goods. 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 Nestl 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.

Nestl India manufactures products of truly international quality under internationally famous brand names such as NESCAF, 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 NESTL Milk, NESTL SLIM Milk, NESTL Fresh 'n' Natural Dahi and NESTL Jeera Raita.









initiatives that help to improve the quality of life in the communities where it operates. NESTL Milk ensures high quality and safety. NESTL 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 NESTL Milk has a shelf life of 120 days without refrigeration. However, once opened, it must be refrigerated. The packaging is tamper-evident. NESTL 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


Chapter 3

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 cooperative 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


1. Milk producer co-operative societies at Village Level (Primary Cooperative 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 cooperative 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 Cooperative 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: -


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.



Milk fed has its milk union in many districts of Punjab. Their district unions are: -


Bassi Pathana

Chandigarh Ferozepur

Faridkot Amritsar


Gurdaspur Sangrur Ropar Patiala Ludhiana Jalandhar



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 Development of Punjab Government and Punjab Dairy at the Milk Plant Gurdaspur were Co-operation

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.


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.


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 boilers 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.


Chapter 4

Punjabs pride: - Ghee, lassi, panjiri, kheer


Punjabs 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, states 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. 45

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 46

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 (UHT) DTM Toned Standard Full Cream 47 Skimmed Milk Double Toned Milk Toned Milk (Taaza) Cow Milk Long shelf life milk

Skimmed Camel Milk Fresh Milk Products Chaach Lassi Dahi Paneer Shrikhand Icecream Rasgulla Flavored Milk Mawa Today Verka Milk Plant Gurdaspur provides liquid milk of four types 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. WMP Cheese Dairy Whitener White Butter Long Shelf Life Milk Products Ghee Cow Ghee Table Butter SMP

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.


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 customers 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



Chapter 5



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 public for getting their milk or Ghee samples tested in our quality control lab free of cost. 51

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.


Chapter 6




General Manager

Manager Quality Assurance

Incharge Marketing Manager Milk Procurement

Incharge Purchase Deputy Manager P.A.


Manager Engineering

Incharge Store


Local Routes

Chilling Centers

Electrical Liquid Milk Testing Mechanical Refrigeration Microbiological Testing Chemical Testing & Packing Material

Dy. Manager Reception & Processing

Dy. Manager Liquid & Milk

Dy.Manager Ghee & Powder Dy. Manager Paneer & Dahi


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. 2. 3. 4. 5. 6. 7. 8. 9. 10. Sh. G. S Dhami Dr. Virban Singh S. Surjit Singh Bhullar Sh. K.K. Bali S. Amrik Singh Sh. G.S Dhari S. Amrik Singh Sh. S.K. Mahajan S. Amarjit Singh S.Kuldeep Singh 1980 84 1984 89 1989 90 11-06-90 to 04-10-90 Dec 1990 to Dec 1993 Dec. 1993 94 01-09-1994 98 13-09-94 98 1998-2002 31-03-2002 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 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.


Chapter 7

Human Resource Development


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 HRD cell also, which circulate good and readable articles to employees for self-development.


Chapter 8

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


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.


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.

1. Himachal 2. Milk

Pradesh and J & K area is to be developed from city

Supply Milk and Milk Products. 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

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.

4. Non adoption of dairy farming as a side business by formers. 5. Higher cost of raw materials as compared to realization. 6. Continuous
products. increase in higher rates of raw materials as compared to comparative increase in the price realization of milk

7. Lack of autonomy in functioning.

Chapter 9




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 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, OF2009 - 2010 Previous year (amount) 7,13,42,395.80 28,66,99,619.4 2 2,36,48,275.32 57,90,158.68 2,28,33,697.78 Particulars






Current year (amount) 8,12,58,066.0 0 31,64,46,682. 57 2,72,95,223.1 8 71,01,192.68 2,44,74,667.0 1

Previous year (amount)


Current year (amount)

Opening stock Purchase of milk& milk products Procurement Expenses Processing expenses Production expenses

36,81,24,938. Sale of milk& 37,55,13,351 64 milk .17 products 32,64,995.00 Misc. income 10332870.49 8,12,58,066.0 Closing stock 10,35,47,007 0 .00


2,28,33,697.78 1,18,69,119.60 4,14,73,523.80 2,557.00 97,77,021.75 27,33,803.65 49,69,96,162.6 2

Packing expenses Store/Purcha-se/ Engg expenses Admn/accou nts expenses Service Tax Distribution expenses Depreciation

1,79,69,644.7 0 1,37,25,203.3 4 2,59,04,726.7 9 4,202.00 99,37,265.84 27,11,437.89 53,41,04,641. 63 49,69,96,162. 62 53,41,04,641 .63 1,79,01,905.5 Loss for the 8 Year 1,45,36,884. 77 2,64,46,257.4 Sale on 3,01,74,528. 0 Consignment 20 Basis


Chapter 10

THE BALANCE SHEET OF 2008-09 AND 2009-10


THE BALANCE SHEET OF 2008-09 Liabilities Year 2008-09 (amount) 1,32,76,100.00 and 8,04,28,468.37 3,07,84,483.00 Assets Year 2008-09 (amount) 9,93,20,509.3 4 1,55,00,100.0 0 11,04,14,541. 25

Share capital Reserves surplus

Fixed assets Investments Current assets

Secured loans

Current liabilities 31,59,48,287.93 Stock in transit and provision Hare stabilization fund 1,54,775.00 Accumulated losses Appropriate losses Loss of the year Total 44,05,92,114.30 19,37,34,246. 13 37,20,812.00 1,79,01,905.5 8 44,05,92,114. 30


THE BALANCE SHEET OF 2009-10 Liabilities Year 2009 10 (amount) 1,37,67,100.00 and 9,80,11,843.34 3,33,31,243.00 Assets Year 2009 10 (amount) 10,225,97,23. 94 1,55,00,100.0 0 12,38,81,995. 71 21,53,56,963. 71

Share capital Reserves surplus

Fixed assets Investments Current assets

Secured loans

Current liabilities 32,63,82,079.85 Stock in transit and provision Hare stabilization fund 43,402.00 Accumulated losses Appropriate losses Loss of the year Total 47,15,35,668.19

47,15,35,668. 19


Chapter 11

Comparative Balance Sheet of 2008-09 & 2009 - 10


COMPARATIVE BALANCE SHEET 2009 Assets Fixed assets Current assets Investments Accumulated losses Loss of 9,93,20,509.3 4 11,04,14,541. 25 1,55,00,100.0 0 19,37,34,246. 10,22,59,723. 94 12,38,81,995. 77 1,55,00,100.0 0 21,53,56,963. 71 1,45,36,884.7 7 Nil 47,15,35,668. 19 2010 Increase/decreas e amount (+)29,39,214.6 (+)1,34,67,454.5 2 Nil (+)2,16,22,717.5 8 (-)33,65,020.81 nil (+)30943553.89 Percentag e 2.9 % 12.1 % 0% 11.1 % (-)18.7% nil 7.0 %

13 the 1,79,01,905.5 8 37, 20,812.00 44,05,92,114. 30

year Appropriation Loss Total assets

Liabilities Capital Share capital Reserves

& 2009


Increase/decreas e amount

Percentag e 3.6 % 21.8 % 8.2 % 3.3 %


1,37,67,100.0 0 9,80,11,843.3 4 3,33,31,243.0 0 32,63,82,079. 85 43,402.00

(+)4,91,000.00 (+)1,75,83,374.9 7 (+)25,46,760.00 (+)1,04,33,791.9 2 (-)1,11,373.00

0 and 8,04,28,468.3 7 3,07,84,483.0 0 31,59,48,287. & 93 1,54,775.00

surplus Secured loans Current liabilities provisions Share stabilization Fund

71.9 %



44,05,92,114. 3



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.


Chapter 12

Data Interpretation


Comparative Analysis of Assets in Data Interpretation 2008-09 to 2009-10 Q 1 Change in Fixed Assets in 2008-09 to 2009-10

3 2.5 2 1.5 1 0.5 0 2008-09 2009-10



Q 2 Change in Current Assets in 2008-09 to 2009 -10

12.2 12 11.8 11.6 11.4 11.2 11 10.8 10.6 2008 - 09 2009 - 10 East


Q 3 Change in Investments in 2008-09 to 2009-10

16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 2008 - 09 2009 - 10 Investments


Q 4 Change in Accumulated losses in 2008-09 to 2009-10

11.2 11 10.8 10.6 10.4 10.2 10 9.8 9.6 2008-09 2009-10 Accumulated Losses


Q 5 Change in Appropriate loss of the year in 2008-09 to 2009-10

-17.2 -17.4 -17.6 -17.8 -18 -18.2 -18.4 -18.6 -18.8 Appropriate loss

1st Qtr

2nd Qtr


Q 6 Total change in Total Assets in 2008-09 to 2009-10





Total Assets


0 2008-09 2009-10


Chapter 13



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.


Chapter 14




Pandey Mahant Van







Publication New Delhi. R.N., Management Accounting, Sahitya Bhawan

Publications, Agra Horn, (2009), Financial Management and Policy,12 th 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.


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.dairyindia.com www.milkfeed.com


Chapter 15



THE BALANCE SHEET OF2009-2010 Previous year (amount) 5,00,00,000. 00 1,32,76,100. 00 8,04,28,468. 37 3,07,84,483. 00 Liabilities Current year (amount) 5,00,00,000. 00 1,37,67,100. 00 9,80,11,843. 34 3,33,31,243. 00 32,63,82,079 .85 Previous year (amount) 9,93,20,509. 34 1,55,00,100. 00 Assets Current year (amount)

Share capital Reserves and surplus Secured loans

Fixed assets

10,225,97,23. 94 1,55,00,100.0 0 12,38,81,995. 71


11,04,14,541 Current .25 assets Stock transit

31,59,48,287 Current .93 liabilities and provision 1,54,775.00 Share stabilization fund

in -


19,37,34,246 Accumulate .13 d losses

21,53,56,963. 71

37,20,812.00 Appropriate losses 1,79,01,905. 58 44,05,92,114 .30 47,15,35,668 44,05,92,114 .19 .30

Loss of the 1,45,36,884.7 year 7 47,15,35,668. 19


COMPARATIVE BALANCE SHEET 2009 Assets Fixed assets Current assets Investments Accumulated losses 9,93,20,509.3 4 11,04,14,541. 25 1,55,00,100.0 0 19,37,34,246. 13 10,22,59,723. 94 12,38,81,995. 77 1,55,00,100.0 0 21,53,56,963. 71 1,45,36,884.7 7 47,15,35,668. 19 2010 Increase/decreas e amount (+)29,39,214.6 (+)1,34,67,454.5 2 Nil (+)2,16,22,717.5 8 (-)33,65,020.81 (+)3,46,64,365.8 9 Percentag e 2.9 % 12.1 % 0% 11.1 % (-)18.7% 7.9 %

Appropriate 1,79,01,905.5 loss of the year 8 Total assets 43,68,71,302. 3

Liabilities Capital Share capital Reserves surplus

& 2009


Increase/decreas e amount (+)4,91,000.00 (+)1,75,83,374.9 7 (+)25,46,760.00 (+)1,04,33,791.9 2 (-)1,11,373.00

Percentag e 3.6 % 21.8 % 8.2 % 3.3 %

1,32,76,100.0 0 and 8,04,28,468.3 7 3,07,84,483.0 0

1,37,67,100.0 0 9,80,11,843.3 4 3,33,31,243.0 0 32,63,82,079. 85 43,402.00

Secured loans

Current 31,59,48,287. liabilities & 93 provisions Share 1,54,775.00 stabilization Fund Total 44,05,92,114. 3

71.9 %

37,35,23,824. 85


15.2 %


MANUFACTURING, TRADING &PROFIT & LOSS ACCOUNT OF2009 - 2010 Previous year (amount) 7,13,42,395.80 28,66,99,619.4 2 2,36,48,275.32 57,90,158.68 2,28,33,697.78 2,28,33,697.78 1,18,69,119.60 4,14,73,523.80 2,557.00 97,77,021.75 27,33,803.65 49,69,96,162.6 2 Particulars Current year (amount) 8,12,58,066.0 0 31,64,46,682. 57 2,72,95,223.1 8 71,01,192.68 2,44,74,667.0 1 1,79,69,644.7 0 1,37,25,203.3 4 2,59,04,726.7 9 4,202.00 99,37,265.84 27,11,437.89 53,41,04,641. 63 49,69,96,162. 62 53,41,04,641 .63 1,79,01,905.5 Loss for the 8 Year 1,45,36,884. 77 2,64,46,257.4 Sale on 3,01,74,528. 0 Consignment 20 Basis Previous year (amount) Particulars Current year (amount)

Opening stock Purchase of milk& milk products Procurement Expenses Processing expenses Production expenses Packing expenses Store/Purcha-se/ Engg expenses Admn/accou nts expenses Service Tax Distribution expenses Depreciation

36,81,24,938. Sale of milk& 37,55,13,351 64 milk .17 products 32,64,995.00 Misc. income 10332870.49 8,12,58,066.0 Closing stock 10,35,47,007 0 .00


Chapter 17

Project Synopsis