A PROJECT REPORT ON “COMPARATIVE BALANCE SHEET OF VERKA MILK PLANT” Submitted by ANKUSH DATTA (Reg. No. - 90752234933) A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE Of MASTER OF BUSINESS ADMINISTRATION under the guidence of lect. NEELKASHI Submitted to “PUNEET SHARMA” SRI SAI INSTITUTE OF ENGINEERING & TECHNOLOGY PUNJAB TECHNICAL UNIVERSITY, JALANDHAR (PB) 1
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A PROJECT REPORT
ON
“COMPARATIVE BALANCE SHEET OF VERKA MILK PLANT”
Submitted by
ANKUSH DATTA
(Reg. No. - 90752234933)
A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT FOR THE
AWARD OF THE DEGREE
Of
MASTER OF BUSINESS ADMINISTRATION
under the guidence of
lect. NEELKASHI
Submitted to
“PUNEET SHARMA”
SRI SAI INSTITUTE OF ENGINEERING & TECHNOLOGY
PUNJAB TECHNICAL UNIVERSITY, JALANDHAR (PB)
JUNE-JULY 2010
1
CONTENTS
* Declaration
* Certificate from the plant
* Preface
* Acknowledgement
2
DECLARATION
I Ankush datta, hereby declare that the work presented herein is
genuine work done originally by me and has not been published or
submitted elsewhere for the requirement of a degree programme. Any
literature, data or works done by others and cited within this project
report has been given due acknowledgement and listed in the
reference section.
Ankush datta
Roll No: -90752234933
Date: 15th June 2010
3
CERTIFICATE
This is to certify that this dissertation entitled “COMPARATIVE
BALANCE SHEET” is the result of the research work carried out by
“ANKUSH DATTA” in verka milk plant ,gurdaspur.
SIGNATURE HEAD OF DEPARTMENT
4
PREFACE
5
PREFACE
“Education is not filling of pail, but the lighting of a fire”.
“Training is the ability to listen to almost anything without losing your
temper or your self confidence”.
Practical training imbibes an integral part of management studies. One
cannot merely upon the theoretical knowledge. It is to be coupled with
practical for it to be a fruitful classroom lectures make the fundamental
concept of management clear. They also facilitate the learning of
practical things. However class lectures must be correlated with
practical in the company has a significant role to play in the subject in
business management. To develop management and administrative
skill in future managers have to enhance their analytical skills, it is
necessary that they combine their classroom learning with the
knowledge of real business environment.
After liberalization myself Indian economy scene I really a buzz with
activity. Lots and lots of multinational companies are coming in with
their technical expertise and proven management concepts. Industrial
activity in Indian has become a thing to watch and I really wanted to
be of it and it was essential for me being a management student.
For this reason SRI SAI COLLEGE OF ENGINEERING AND TECHNOLOGY
BADHANI designed a scheme under which student of Master of
Business Administration go for Summer Training between second and
third semester.
During this period, I have written a report about knowledge,
experienced I gained, and findings I made in course of the training.
This report has been written in simple language specifying the
organizational set up and management procedure of Verka Milk Plant,
Gurdaspur and along the comparative balance sheet of the Milk Plant.
6
It is difficult to elaborate everything which learned during the training
however, I have endeavored too many, comprehensive picture of
details about working in the following pages. I have accumulated the
desired information through personal observation, study of documents
and discussions
Any omission or error is deeply regretted.
AKNOWLEDGEMENT
7
ACKNOWLEDGMENT
In a dynamic and complex industrial and marketing environment,
theoretical concepts and classroom, teaching is not enough to impart
professional knowledge and skills to the future managers. In this
regard, I feel quite indebted to Management Department of SRI SAI
COLLEGE OF ENGINEERING AND TECHNOLOGY BADHANI for providing
me with a tremendous skills and getting me exposed to the
philosophies and psychologies behind the complex corporate world and
marketing environment.
It is quite heartening to note about the successful completion of my
training and project report. But without the effort - support and co-
operation of various persons, this result may not have been possible.
So, I feel that this report would be incomplete without thanking the
people who helped me in completion of the training and project report.
First of all, I wish to express my sincere thanks to Mr. P.B.Singh general
manager for allowing me to undergo my training.
I am heartily thankful to R.N.Mahant manager of Accounts for their
sincere and devoted guidance during the training. I would also like to
thank all the employees of Accounts Department and all other
Departments to complete this report.
8
Last but not the least I thank my parents, friends and kith and kins for
their support during my research work, as without their cooperation I
would not have been able to do any research so efficiently and
effectively.
DEPARTMENT OF MANAGEMENT
S.S.C.E.T.COLLEGE OF BADHANI, PATHANKOT
(SESSION2009-2011)
INDEX:-
S.No Chapter Page no.
1 Introduction of the project
Objective , Need, Scope &
Methodology
11-16
2 Industry Profile
- Dairy Industry in India
- Leading Brands
- Lead Players
- Dairy Whiteners
- Major Players
17-33
9
3 Company Profile
- History
- Location
- Capacity of Plant
- Milk Feds Network
- Controlling Authorities
- Government Support
- Milk Procurement at Milk
- Plant Chilling Stations
- Air/Water Pollution Control
34-41
4 Punjab’s Pride :
- Milk
- Ghee
- Lassi
- Panjiri
- Kheer
- Khoa
42-47
5 Quality Policy
- Quality
- Engineering
48-50
6 Organizational Chart. 51-54
7 Human Resource Development 55-56
8 SWOT Analysis
- Strength
- Weakness
- Opportunities
- Threats
57-59
9 Profit & Loss Account - Manufacturing , Trading, Profit & Loss Account of 2009 – 2010
60-62
10 Balance Sheet of 2008-09 and 63-65
10
2009-1011 Comparative Balance Sheet
- Balance Sheet of 2008-09 and 2009-10
66-68
12 Data Interpretation 69-7513 Suggestions 76-77
14 Bibliography 78-79
15 Appendix 80-82
16 Project Synopsis
11
CHAPTER 1
INTRODUCTION
12
COMPARATIVE BALANCE SHEET
A comparative balance sheet is designed to show financial differences
between several accounting periods. A balance sheet is a detailed
account of everything lost and gained financially during a certain time,
containing both physical and abstract data. A comparative balance
sheet is useful because a business can instantly compare profits and
losses between different time periods. Most businesses use
comparative balance sheets to help increase profits and functionality
of a company.
Features
A comparative balance sheet will include several different types of
accounting data. First there will be the income received and money
spent. There will also be a list of credits and debits to the company. A
list of assets and liabilities is also included. All of these factors are
necessary to see what the total worth of the company is through the
balance sheet. The comparative balance sheet allows the company or
business to see at a glance how its profits differ from one year to
another. These comparative balance sheets are aligned so that
business people can see at a glance the financial differences from year
to year.
Function
A balance sheet is designed to help keep a business or company aware
of every expense and profit that it is receiving. It also allows the
company to see which times of the year are most profitable, and which
years they did the best. This knowledge is important so that the
matured into a protest movement that was channeled towards
economic prosperity.
Setting Up of Gujarat Cooperative Milk Marketing Federation
In 1954, Kaira District Co-operative Milk Producers’ Union built a
plant to convert surplus milk produced in the cold seasons into milk
powder and butter3. In 1958, a plant to manufacture cheese and one
to produce baby food were added. Subsequent years saw the addition
of more plants to produce different products. In 1973, the milk
societies/district level unions decided to set up a marketing agency to
market their products. This agency was the Gujarat Cooperative Milk
Marketing Federation (GCMMF). It was
registered as a co-operative society on 9 July 1973.
Nestlé’s relationship with India dates back to 1912, when it
began trading as The Nestlé Anglo-Swiss Condensed Milk Company
(Export) Limited, importing and selling finished products in the Indian
market.
After India’s independence in 1947, the economic policies of the
Indian Government emphazised the need for local production. Nestlé
responded to India’s aspirations by forming a company in India and set
up its first factory in 1961 at Moga, Punjab, where the Government
wanted Nestlé to develop the milk economy. Progress in Moga required
the introduction of Nestlé’s Agricultural Services to educate, advise
and help the farmer in a variety of aspects. From increasing the milk
yield of their cows through improved dairy farming methods, to
irrigation, scientific crop management practices and helping with the
procurement of bank loans. Nestlé set up milk collection centres that
34
would not only ensure prompt collection and pay fair prices, but also
instil amongst the community, a confidence in the dairy business.
Progress involved the creation of prosperity on an on-going and
sustainable basis that has resulted in not just the transformation of
Moga into a prosperous and vibrant milk district today, but a thriving
hub of industrial activity, as well. For more on Nestlé Agricultural
Services.
Nestlé has been a partner in India's growth for over nine decades
now and has built a very special relationship of trust and commitment
with the people of India. The Company's activities in India have
facilitated direct and indirect employment and provides livelihood to
about one million people including farmers, suppliers of packaging
materials, services and other goods.
The Company continuously focuses its efforts to better
understand the changing lifestyles of India and anticipate consumer
needs in order to provide Taste, Nutrition, Health and Wellness through
its product offerings. The culture of innovation and renovation within
the Company and access to the Nestlé Group's proprietary
technology/Brands expertise and the extensive centralized Research
and Development facilities gives it a distinct advantage in these
efforts. It helps the Company to create value that can be sustained
over the long term by offering consumers a wide variety of high
quality, safe food products at affordable prices.
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Nestlé India manufactures products of truly international quality
under internationally famous brand names such as NESCAFÉ, MAGGI,
MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in
recent years the Company has also introduced products of daily
consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ
Fresh 'n' Natural Dahi and NESTLÉ Jeera Raita.
Nestlé India is a responsible organization and facilitates
initiatives that help to improve the quality of life in the communities
where it operates.
NESTLÉ Milk ensures high quality and safety. NESTLÉ Milk goes through
Ultra Heat Treatment to provide bacteria-free milk to its consumers.
The product also goes through stringent quality checks and can be
consumed straight from the pack as no boiling is required. The sealed
pack of NESTLÉ Milk has a shelf life of 120 days without refrigeration.
However, once opened, it must be refrigerated. The packaging is
tamper-evident.
NESTLÉ Milk is available in all metros AND some other states also.
Today, Nestle is the world's largest and most diversified food company.
It has around 2,50,000 employees worldwide, operated 500 factories in
approximately 100 countries and offers over 8,000 products to millions
of consumers universally
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Chapter 3
Company Profile
37
COMPANY PROFILE
The Punjab state co-operation Milk Producers Federation Ltd. popularly
known as MILK FED – PUNJAB came into existence in 1973. It was
backed by twin objective of providing remuneration milk to the market.
Although the federation was registered a lot earlier, it took the centre
stage of Punjab Diary Scenario in 1983 when all the Milk Plants of
Punjab Dairy Development Corporation Ltd. were handed over to co-
operative sector and the entire state was covered under operation
flood to give the formers better value and customers better products.
The organizational set up of MILK FED is based on three tire systems
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1. Milk producer co-operative societies at Village Level (Primary Co-
operative Societies).
2. Milk Co-operative union of Districts levels (Unions).
3. Co-operative milk marketing federation as an apex body at State
Level (MILK FED).
MILK FED with its network of over 5000 village milk producers co-
operative societies and three lacs milk producers from a strong
network providing assured market to milk producers. MILK FED and its
units have a workforce of about 5000 employees and also provide
regular employment to as out 600 transporters.
HISTORY: -
Milk Plant Gurdaspur, whose foundation stone was laid down by
S.Santokh Singh Randhawa (Dairy Development Minister of Punjab)
then commissioned by Punjab Dairy Development Corporation in
Aug.22nd, 1983. It is spread construction of the plant was begun in
1986-82 and it started working in 1986-87. It was registered under Co-
operative Societies Act with Registration License No. 31/R – MMPO/93.
There are three chilling stations working under this plant.
LOCATION: -
This plant is situated on the Pathankot road, Gurdaspur. It is two
kilometer away from Railway Station, Gurdaspur.
CAPACITY OF PLANT: -
39
The plant was designed to handle 60.000 liters per day of milk drying
and 10.000 liters per day as liquid supply. Since inception of the Plant
there was no change in the handling capacity until April 1997. Due to
good potentiality of milk in areas, efforts were always made to
enhance its handling capacity to 100.000 liters milk per day. Under the
guidance of Milk Federation Punjab, the Registrar, Cooperative
Societies Punjab, has sanctioned as sum of
Rs 140 crore from the co-operative Development Fund. These funds
are being utilized at the earliest. The loan amount should be
refundable in 5 years after moratorium period of 3 years. On expansion
the plant will handle 100,000 liters of milk per day. The registration
capacity will also increase to 1.5 lacs liters of milk per day.
40
MILK PLANT NETWORK
Amritsar
Bathinda
Bassi Pathana
Chandigarh
Ferozepur
Faridkot
Gurdaspur
Hushiarpur
JalandharLudhiana
Patiala
Ropar
Sangrur
MILK FEDS NETWORK
Milk fed has its milk union in many districts of Punjab. Their district
unions are: -
41
CONTROLLING AUTHORITIES: -
The Milk Plant Gurdaspur set up by Punjab Government but in 1966 the
controlled was passed on to Punjab Dairy Development Co-operation
and subsequently its management was passed to Milk Fed w.e.f. April
9, 1983. The Gurdaspur District Co-operative Milk Producer Union Ltd
was registered on April 28th. Union has started its business on July 1,
1988 with the complete control of Plant to the Union. Moreover all the
assets and liabilities of Punjab Government and Punjab Dairy
Development Co-operation at the Milk Plant Gurdaspur were
transferred to Union w.e.f. April 1, 1994.
The Union has an elected board and managing director is on
deputation from Milk Fed. The officers are in the cadre of deputation
from Milk Fed.
GOVERNMENT SUPPORT: -
Union finally functioned with share capital of Rs 10 lacs received from
government which was later on enhanced to Rs 103 lacs. Under the
operation flood, Milk Union, Gurdaspur has received
Plant and machinery, tanker and other assets on loan cum grant basis.
A loan was given by National Dairy Development Board amounting to
Rs 109.49 lacs (70% loan and 39% grant). In the year 1990 -91 unions
has taken Rs 53 lacs from Milk Fed as short term loan to meet its
current obligation. This year N.D.D.B. has given a loan of Rs 2.5 crore
to the Union. The union gets timely fund availability of working capital
loan.
42
MILK PROCUREMENT AT MILK PLANT: -
The procurement system of this Milk Plant is well organized. Milk
procurement is made through Milk Producers Co-operative Societies
which are spread over whole of the Gurdaspur. Under these societies,
there are milk producer members. These members are chosen by
village level societies from each village. These members choose a
secretary
who collect milk from milk producers and sell to the plant and earn
some percentage of commission. In November, 1998, there were
603 functioned societies having 32967 milk producer members. In
November, 1999, there were 623 functional societies having
41967 milk producers’ members holding membership of Milk Plant,
Gurdaspur and poured 1787634 kgs of milk.
In June 30, 2002 Milk Plant Gurdaspur has 738 functional societies out
of which 493 are working. While collection of milk, the fat contents of
milk are properly tested on order to check the quality of milk because
the price is paid according to fat contents. GERBER and MILKO Tests
are the tests applied to test protein and fat contents in milk.
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CHILLING STATIONS: -
There are three chilling stations working under this plant. These are
Batala, Kahnuwan and Tugalwada.
The motive for opening these stations is to save the milk. The life of
the milk is only Five hours after it is collected. Some villages are more
away from Gurdaspur Plant and transportation times much higher than
this time. So these stations are opened to chill the collected milk so
that the life of milk be increased against five hours.
AIR / WATER POLLUTION CONTROL: -
The pollution created by boiler’s smoke and affluent discharge is
checked as per the norms of the Punjab Pollution Control Board,
necessary devices have been installed. With the start of these
equipments, the BOD of treated water (of treatment of water) being
discharged into Municipal Sewer is less than 30 i.e. well within norms.
The treated water is used for irrigation purpose on the land of Milk
Plant. Thus there is reduction of pumping of water from Earth Strata.
The result of this is 17, 00,000.
44
Chapter 4
Punjab’s pride: - Ghee, lassi,
panjiri, kheer…
45
Punjab’s pride: - Ghee, lassi, panjiri, kheer…
Punjab may be flopping on fronts like health, information technology
but its flavored Verka lassi, desi ghee; ice-cream, sweetened milk,
panjiri, paneer, curd, and kheer are doing very well in the national and
international market. Milk fed, state’s leading cooperative, known for
Verka brand in and outside the country has achieved 64 per cent
growth in the sale of lassi, 37 per cent in sweetened flavored milk, 31
per cent in ghee, 21 per cent in ice cream, 70 per cent in kheer and 39
per cent in paneer last year. Desi ghee and lassi have been
traditionally strong area of Punjab.
Milk fed, that has achieved overall growth of 21 per cent last year, is in
fact expecting big increase in the milk collection in winter this year.
Owing to this reason, it has already started looking for new markets in
Delhi and elsewhere to sell milk and its products.
46
Impressed by the performance of Milk fed, some of the leading
companies in milk business Yoplait group, second biggest fresh dairy
product company in the world, has approached it for long -term
partnership.
There has been 31.08 per cent growth in milk procurement in the first
fortnight of the May known as a lean period as far as procurement of
milk is concerned. During first 12 days of May, the average
procurement of milk was 8.83 lakh kg compared to 7.01 lakh kg of
corresponding period in the last year.
Amritsar, Gurdaspur, Patiala, Ludhiana, Ferozepur and Jalandhar
districts are doing very well with regard to the milk procurement.
Overall turnover of the Milk fed had gone up to Rs 918 crore by the end
of last financial year and it would cross Rs 1,000 crore at the end of
current year. Increase in the turnover has been to the extent of 20.9
per cent in 2009-10 compared to the previous fiscal year.
V.K. Singh, managing director, Milk fed, said the biggest challenge
before his organization was to find new markets to sell milk products.
Our plants can process milk up to 14 lakh kg per day but “we are
expecting milk procurement touching figure of 17 lakh kg during the
winter this year. Hence, we need new markets to sell milk and its
products”, he said.
Milk fed had given best price Rs 14.50 per kg cow milk and Rs 17.50
per kg for buffalo milk. “To keep dairy farmers and other milk
producers in the state motivated, we will not slash its price during the
flush season”, he said. Except Amritsar and Sangrur, all other milk
47
plants in cooperative sector were doing very well, he added. He said
Milk fed was in profit and would become a blue-chip organization in a
year or two.
“Efforts made by us in enhance milk production by supporting the
setting up new dairy farms has started giving dividends”, he said.
“We are supplying milk even in Srinagar local market and also looking
to develop market in north-east such as Assam to sell milk products
especially value added ones. There was a plan to set up a plant near
Delhi because that was a biggest consumer market. Areas in which
Milk fed is not showing promise is table butter that has registered a
negative growth of 11 per cent and internal and external sale of
skimmed milk that has registered a negative growth of 24 per cent.
There are also problems on human resources front because private
sector has been keeping eye on its professionals and luring them away
by offering higher pay packets. V.K. Singh said, “We would have to
adopt the corporate pattern to higher and retain best talented persons
in milk sector to compete with private sector”.
PRODUCTS
The “Verka” range:
Fresh Milk Long shelf life milk
(UHT)
DTM Skimmed Milk
Toned Double Toned Milk
Standard Toned Milk (Taaza)
Full Cream Cow Milk
48
Skimmed
Camel Milk
Fresh Milk Products Long Shelf Life Milk Products
Chaach Ghee
Lassi Cow Ghee
Dahi Table Butter
Paneer SMP
Shrikhand WMP
Icecream Cheese
Rasgulla Dairy Whitener
Flavored Milk White Butter
Mawa
Today Verka Milk Plant Gurdaspur provides liquid milk of four type’s
name
Toned
Double toned
Standard and Gold (Full cream) and
Various products like Ghee, Paneer table butter, chach, lassi,
shrikhand in the district of Gurdaspur and also other grid. Its sale
tetra packs milk throughout the Punjab.
The plant is managed and operated by will-qualified, competent and
experienced, managerial cadre and highly motivated work force to
provide highest quality of product and best of services to its esteemed
customers.
49
To further improve the efficiency and efficiency and effectiveness of
the plant performance, of Verka Milk Plant Gurdaspur.
OBJECTIVES
The primary concern of Verka Milk Plant Gurdaspur is to provide best
quality and safe products and services, achieved this quality objectives
of Verka Milk Plant Gurdaspur dairy are designed to
Meet a well defined needs use and purpose of costumer.
Satisfy customer’s expectation for good and safe milk and milk
products.
Comply with applicable national and international standard.
Make available milk and milk products at comparative price.
Ensuring implementation of quality management system.
Application ad adherence of HACCP principal for food safety.
Motivates employees for professional excellence and
participation.
50
Chapter 5
QUALITY POLICY
51
QUALITY POLICY
The Verka Milk Plant Gurdaspur believes that the delighted customer is
the only key for overall development of the organization
This is achieved by:-
Educating milk products for clean milk production.
Manufacturing and supplying milk and milk products and services
of consistent quality at comparative price.
Adoptive innovate and modern technologies and system.
Developing committed workforce.
Adoption of safety and environment friendly standards with help
of application of HACCP principals.
Quality
Verka Milk Plant Gurdaspur has got a sophisticated quality Control
Laboratory, which is equipped to carry out almost all the chemical and
bacteriological tests related with milk and milk products. The QC Lab
also carries quality tests for various packaging material, ingredients,
and chemicals used in Verka Milk Plant Gurdaspur. The service of the
quality control lab is also used for carrying our consumer awareness
programs like “Dudh ka Pani Ka Pani”. We also have facility for general
52
public for getting their milk or Ghee samples tested in our quality
control lab free of cost.
Engineering
The lifeline of Verka Milk Plant Gurdaspur i.e. steam, water and
refrigeration is provided and maintained by the Engineering section.
Apart from this section does regular maintenance both preventive and
corrective only. Considering the perishable nature of milk, the
engineering section has to be on its toes always.
The section is managed by will – qualified and experienced manpower,
which are at par with any professional organization.
53
Chapter 6
ORGANIZATIONAL CHART
54
ORGANIZATIONAL CHART
55
GENERAL MANAGER
56
GeneralManager
M.R.
InchargeStoreManager
Engineering
ManagerQualityAssurance
InchargePurchase
DeputyManagerP.A.
InchargeMarketing
ManagerMilkProcurement
ChillingCenters
LocalRoutes
Chemical Testing &Packing Material
MicrobiologicalTesting
Liquid MilkTesting
Boiler
Refrigeration
Electrical
Mechanical
Dy.ManagerGhee & Powder
Dy. ManagerPaneer & Dahi
Dy. ManagerLiquid & Milk
Dy. ManagerReception & Processing
G.M. is the topmost authority in particular milk plant. He is the
incharge of affairs of union in process provides due price to milk
producers and assures good quality to the consumers at the most
reasonable price.
G.M. who is duly assisted by mangers of various line functional
departments plus staff to carry out his task and any problem related to
different departments are dealt by him.
The name time periods of the G.M. are as follows: -
1. Sh. G. S Dhami 1980 — 84
2. Dr. Virban Singh 1984 — 89
3. S. Surjit Singh Bhullar 1989 — 90
4. Sh. K.K. Bali 11-06-90 to 04-10-90
5. S. Amrik Singh Dec 1990 to Dec 1993
6. Sh. G.S Dhari Dec. 1993 — 94
7. S. Amrik Singh 01-09-1994 — 98
8. Sh. S.K. Mahajan 13-09-94 — 98
9. S. Amarjit Singh 1998-2002 — 31-03-2002
10. S.Kuldeep Singh 01-04-2002 – till now
As far as the organizational structure is concerned we can say that the
federation is a state Level Apex co-operative Organization owned by its
member unions each of which, in turn, is owned the dairy co-operative
societies in its area of operation which are themselves owned by
farmer members.
The federation has a board of directors which has overall responsibility
for the planning policies, financial resource mobilization and
management, member and public relations as well as liaison with
57
agencies of the state and central Government, financing institutions
etc. The federation has chief Executive designed as Managing Director.
It is a vertically integrated structure that established a direct linkage
between those who produce the milk and those who consume it.
Federation provides services and support to union. Marketing with in
and outside State. Liaison with government and NGO agencies,
mobilization of resources and co-ordination planning programmes or
project.
58
Chapter 7
Human Resource Development
59
Human Resource Development
Verka Milk Plant Gurdaspur has always considered its staff member as
an asset. Various programs are run on continuous basis for keeping the
morale of employees high. Without the positive support of the
employees, the success story of Verka Milk Plant Gurdaspur would not
have been possible. Yearly Get-together of all officers and employees
is one of the most important events of Verka Milk Plant Gurdaspur.
For the last few years, more emphasis is being given on employees
‘training in the field of Attitude, Customer Relations, Positive Thinking,
Time Management, Stress Management and Team Building etc; apart
from technical subjects. Employees are being made aware of such
subjects either by nominating them to various training organizations
and workshops and seminars. Also experts are being invited to conduct
in house workshops and seminars. Verka Milk Plant Gurdaspur has h
60
HRD cell also, which circulate good and readable articles to employees
for self-development.
Chapter 8
SWOT Analysis
61
SWOT ANALYSIS
STRENGTH: -
1. Minimum interference from top management in day to day
working.
2. Qualified, experienced and devoted workforce.
3. Brand name – VERKA.
4. Direct contacts with milk producers.
5. Own cattle feed plant and fodder seed grading station for
supplying certified fodder seeds.
6. Technical and financial guidance and support from Milk Fed Head
Office Chandigarh as well as National Dairy Development Dairy
Board.
7. ISO and HACCP certification.
8. Surplus created capacities.
9. Good corporate governance and socially responsible
organization.
10. Quality of available milk is very good
WEAKNESS: -
1.Situated between two rivers RAVI and BEAS and prone to
floods and sometimes havoc is caused which ultimately
affects the cattle population in the crease.
2.Indo Pak Border is near to Gurdaspur District at which
situation always disturbing local population which ultimately
affects cattle rearing by the people.
62
3.Highly completive markets.
4.Financial position of plant is very weak from many years.
5.Sufficient working capital is not available.
6.Stagnation in milk procurement.
OPPORTUNITIES: -
1.Himachal Pradesh and J & K area is to be developed from city
Supply Milk and Milk Products.
2.Milk Chilling Centre Fatehgarh Churian falling in District
Gurdaspur, if handed over to Gurdaspur Union Milk, procurement
can be increased.
3.Veterinary health care and breeding facilities is to be increased
for improving genetic milk yielding characters of animals.
4.Feasibility of home delivery system for city supply milk to be
exposed.
5.Diversification of land use for improving profits.
6.Innovative energy saving measures is required to bring down the
cost of production and improve profitability.
THREATS: -
1.Border tensions and river floods.
2.Increasing salary bills as compared to turnover.
3.WTO agreements.
63
4.Non adoption of dairy farming as a side business by formers.
5.Higher cost of raw materials as compared to realization.
6.Continuous increase in higher rates of raw materials as
compared to comparative increase in the price realization of milk
products.
7.Lack of autonomy in functioning.
Chapter 9
PROFIT AND LOSS ACCOUNT
64
PROFIT AND LOSS ACCOUNT
Profit and loss account is depicted from the Balance Sheet. According to this account, the company comes to know about the real position of the company by knowing that whether the company has gained or loss. As the checking of this account reveals that profit and loss account for the year 31.03.2009, 31.03.2010 was misrepresentation of accounts and depicts the position which is not correct because the plant authorities had shown appropriation loss account of Rs 49,69,96,162.62/- on 31.03.2009, Rs 53,41,04,641.63/- on 31.03.2010 in Balance Sheet by preparing separate P & L appropriation account by the union when provision of this expenses which were increased from 2009-2010 was not made. Plant concealed net loss for the concerned years to the tune of Rs 1, 79,01,905.58/- and Rs 1,45,36,884.77/- for 31.03.2009 and 31.03.2010 respectively by not showing as net loss for that year.
Besides many reasons the main reason for loss as explained by the plant authorities is running the plant in under capacity resulting high
65
production cost and fixed cost, low margin between purchase/production price and sale price does not cover the various expenditures which are incurred in procurement.
MANUFACTURING, TRADING &PROFIT & LOSS ACCOUNT OF2009 - 2010
Previous year(amount)
Particulars Current year(amount)
Previous year(amount)
Particulars Current year(amount)
7,13,42,395.80 Opening stock
8,12,58,066.00
36,81,24,938.64
Sale of milk&milk products
37,55,13,351.17
28,66,99,619.42
Purchase of milk& milk products
31,64,46,682.57
32,64,995.00 Misc. income 10332870.49
2,36,48,275.32 ProcurementExpenses
2,72,95,223.18
8,12,58,066.00
Closing stock 10,35,47,007.00
57,90,158.68 Processing expenses
71,01,192.68
66
2,28,33,697.78 Production expenses
2,44,74,667.01
2,28,33,697.78 Packing expenses
1,79,69,644.70
1,18,69,119.60 Store/Purcha--se/ Engg expenses
1,37,25,203.34
4,14,73,523.80 Admn/accounts expenses
2,59,04,726.79
2,64,46,257.40
Sale on Consignment Basis
3,01,74,528.20
2,557.00 Service Tax 4,202.00
97,77,021.75 Distribution expenses
99,37,265.84 1,79,01,905.58
Loss for theYear
1,45,36,884.77
27,33,803.65 Depreciation 27,11,437.89
49,69,96,162.62
53,41,04,641.63
49,69,96,162.62
53,41,04,641.63
67
Chapter 10
THE BALANCE SHEET OF 2008-09 AND 2009-10
68
THE BALANCE SHEET OF 2008-09
Liabilities Year 2008-09 (amount)
Assets Year 2008-09 (amount)
Share capital 1,32,76,100.00 Fixed assets 9,93,20,509.34
Reserves and surplus
8,04,28,468.37 Investments 1,55,00,100.00
Secured loans 3,07,84,483.00 Current assets 11,04,14,541.25
Current liabilities and provision
31,59,48,287.93 Stock in transit
Hare stabilization fund
1,54,775.00 Accumulated losses
19,37,34,246.13
Appropriate losses
37,20,812.00
Loss of the year 1,79,01,905.58
Total 44,05,92,114.30 44,05,92,114.30
69
THE BALANCE SHEET OF 2009-10
Liabilities Year 2009 – 10 (amount)
Assets Year 2009 – 10 (amount)
Share capital 1,37,67,100.00 Fixed assets 10,225,97,23.94
Reserves and surplus
9,80,11,843.34 Investments 1,55,00,100.00
Secured loans 3,33,31,243.00 Current assets 12,38,81,995.71
Current liabilities and provision
32,63,82,079.85 Stock in transit -
Hare stabilization fund
43,402.00 Accumulated losses
21,53,56,963.71
Appropriate losses
Loss of the year
Total 47,15,35,668.19 47,15,35,668.19
70
Chapter 11
Comparative Balance Sheet of 2008-09 & 2009 - 10
71
COMPARATIVE BALANCE SHEET
Assets
2009 2010 Increase/
decrease amount
Percentag
e
Fixed assets 9,93,20,509.3
4
10,22,59,723.
94
(+)29,39,214.6 2.9 %
Current assets 11,04,14,541.
25
12,38,81,995.
77
(+)1,34,67,454.5
2
12.1 %
Investments 1,55,00,100.0
0
1,55,00,100.0
0
Nil 0 %
Accumulated
losses
19,37,34,246.
13
21,53,56,963.
71
(+)2,16,22,717.5
8
11.1 %
Loss of the
year
1,79,01,905.5
8
1,45,36,884.7
7
(-)33,65,020.81 (-)18.7%
Appropriation
Loss
37, 20,812.00 Nil nil nil
Total assets 44,05,92,114.
30
47,15,35,668.
19
(+)30943553.89 7.0 %
Liabilities &
Capital
2009 2010 Increase/
decrease amount
Percentag
e
Share capital 1,32,76,100.0
0
1,37,67,100.0
0
(+)4,91,000.00 3.6 %
Reserves and
surplus
8,04,28,468.3
7
9,80,11,843.3
4
(+)1,75,83,374.9
7
21.8 %
Secured loans 3,07,84,483.0
0
3,33,31,243.0
0
(+)25,46,760.00 8.2 %
Current
liabilities &
31,59,48,287.
93
32,63,82,079.
85
(+)1,04,33,791.9
2
3.3 %
72
provisions
Share
stabilization
Fund
1,54,775.00 43,402.00 (-)1,11,373.00 71.9 %
Total 44,05,92,114.
3
471535668.19 (+)30943553.89 7.0 %
The comparative balance sheet of the company reveals that during 2009, there is an increase in fixed assets of Rs 9,93,20,509.34 and there is an increase in current assets of Rs 11,04,14,541.25 and there is an increase in total assets by 7.9 %. Reserve and surplus increased from Rs 8,04,28,468.37 to Rs 9,80,11,843.34 i.e. 21.8 % .
Current liabilities and provision are decreased from 44, 05, 92,114.3 to 37, 35, 23, 824.85. Overall position of the company is satisfactory.
73
Chapter 12
Data Interpretation
74
Comparative Analysis of Assets in Data Interpretation 2008-09 to 2009-10
Q 1 Change in Fixed Assets in 2008-09 to 2009-10
75
Q 2 Change in Current Assets in 2008-09 to 2009 -10
76
Q 3 Change in Investments in 2008-09 to 2009-10
77
Q 4 Change in Accumulated losses in 2008-09 to 2009-10
78
Q 5 Change in Appropriate loss of the year in 2008-09 to 2009-10
79
Q 6 Total change in Total Assets in 2008-09 to 2009-10
80
Chapter 13
Suggestions
81
Suggestions:
1. Verka milk plant should concentrate more on marketing strategies.
2. Expand themselves to other states also. 3. Feasibility of home delivery system for city supply milk to be exposed
4. Innovative energy saving measures is required to bring down the cost of production and improve profitability.
5. try to create retained earning reserve and utilize it for its own development.