A SUMMER INTERNSHIP PROJECT REPORT ON

AT

Submitted for the partial fulfillment of Master of Business Administration (2010-2012) Gujarat Technological University Ahmedabad

Submitted By: DHAVALKUMAR ASHVINKUMAR PATEL M.B.A-II (2010-2012) Enrollment No.107550592073

Under the Guidance of: Mr. SUNIL PRAJAPATI

Submitted To: SARDAR PATEL COLLEGE OF ADMINISTRATION AND MANAGEMENT (MBA) Approved by All India Council for Technical Education (New Delhi) AFFILIATED WITH GUJARAT TECHNOLOGICAL UNIVERSITY SPEC Campus,Vidhyanagar-Vadtal Road Bakrol388315 Anand, Gujarat. JULY - 2011

DECLARATION

I undersigned, MR. DHAVAL PATEL, M.B.A. Student of SARDAR PATEL COLLEGE OF ADMINISTRATION AND MANAGMENT, hereby declares that project OPERATIVE MILK PRODUCERS UNION LTD., Submitted to SARDAR PATEL COLLEGE OF ADMINISTRATION AND the report WORKING CAPITAL At THE PANCHMAHAL DISTRICT CO-

MANAGMENT is a result of our sincere efforts & our indebtedness to other work. Publications, if any, have been duly acknowledged.

Place: Godhra. Date: Signature (DHAVAL PATEL)

PREFACE

SARDAR PATEL COLLEGE OF ADMINISTATION AND MANAGMENT is the pioneer to introduce the graduate level course in Business Administration area in ANAND. MBA is a 2 years degree course which provides the students practical knowledge along with theoretical knowledge. To gain practical exposure students of 3rd SEMESTER are required to undertake industrial training of SIX weeks in a company. The training gives in-depth knowledge to a student about finance departments: So as to foster the growth of the students and have an opportunity in the industrial environment.

The main objective of the practical training is to let the students know about industrial environment and prevailing business practice and develop them on a practical basis as well as theoretical.

It gives us an immense pleasure being a part of PDCOMPUL in a span of one month. This precious time of project is fruitful to correlate theoretical concept and industrial practices. I have tried to highlight what is the whole system is all about and how is works? My report plays A Role of Jack. Since I have considered each and every aspects of PDCOMPUL. We thanks them all of their sincere and honest efforts behind making our training a successful one.

ACKNOWLEDGEMENT

Here I would like to take this opportunity to my sincere and deepest sense of gratitude to PDCOMPUL for curriculum. giving me the opportunity to carry out my summer training as a part of my

I express my profound sense of gratitude to Sheri A.R. Mandola General Manager ( HRD & ADMN) for providing me an opportunity to undertake my summer training at, PDCOMPUL for providing me important guidelines regarding the Dairy and other topics as well. I am highly thankful to MR. DHAVAL BHRAMBHAT As he was always ready to take out time for me whenever I had some quarries form their hectic schedule.

I thank to everyone of PDCOMPUL who shared their precious time for providing me the important information, which made my report comprehensive. This report would not have light of the day without the co-operation and guidance of the concerned members.

I would like to thank Dr. T. D. TIWARI, Director General: SPEC and guide Mr. SUNIL PRAJAPTI, Assistant Professor of SPCAM at ANANAD, for keeping this training really a true learning experience with their guidelines and support. Their way of directing me gave a chance to study the whole Environment of PDCOMPUL in depth. And this training has been a great learning experience for me.

FUTURE PLAN

A separate milk packaging section (with cold rooms) having a capacity of pasteurizing 3 lakh liters of milk per day will be constructed. Setting bulk milk coolers at more 45 cooperative societies. Enhancing the production capacity of cattle feed factory. Construction of more one hundred Dudh Chars. Helping the milk producers to set up about 200 dairy farms with 25 to 30 cows/buffalos. Planning to market liquid milk in the city of Mumbai. Planning for providing all the facilities required for clean milk production to cooperative dairies and milk producers. Putting in special efforts for increasing milk productivity by gearing up Fertility Improvement Programmed (FIP) and Field Progeny Testing Programmed (DIPA) Implementation of animal Productivity Enhancement Programmed (PEP) at the cooperative societies covered under Fertility Improvement Programmed (FIP) with the help of Gujarat Cooperative Milk Marketing Federation. Changing the present animal health service system for improving the quality of veterinary health service connecting all the veterinary centers through a computer network. Preparing special calf-starterforcalves. Arranging for a new administrative section andagodowns at the milk union. Constructing a check dam near the cattle feed factory at Khandiya village of Shahera taluka, under Sander Sahbhagi Jal Sanchay Scheme for managing water resources.

INDEX
Declaration Certificate by guide Certificate Preface Acknowledgment Future plane

SR.NO.
1.

PARTICULERS
Introduction & History History Vision Company profile Organization chart Awards

PAGE NO.
8

9 15 16 21 22 25 26 27 30 33 42 43 44 45 50 51
6

2.

Production department Production cycle Activity of production department Product specification Manufacturing process

3. 4. 5.

Accounting policy SWOT Analysis Finance department Function of finance

6.

Working capital Nature of working capital

Determinant of working capital Working capital finance 7. Working capital analysis Ratio analysis Inventory management Receivable management Collection method 8. 9. 10. 11. 12. 13. Objective of the study Data collection method Findings Limitation Conclusion Recommendation

54 58 61 63 68 71 72 75 76 77 78 79 80

Bibliography Annexure

PDCOMPUL HISTORY

The Co-operative Dairy Movement in India initiated with the establishment of AMUL in 1946. Following that the co-operative district milk unions in different districts took shape. During early 70s, when the co-operative leaders of erstwhile; Panchmahal District, thought to have a district co-operative milk union at district head quarter Godhra, the neighboring districts of Sabarkantha, Kheda & Baroda had already the existence of well established co-op. dairy network. On proposal of district leaders to have a separate milk co-operative union at Godhra; the initial survey conducted by National Dairy Development Board; Anand revealed no possibilities of establishment of an independent co-operative Milk Producers Union Ltd., at Godhra; due to very low productivity of native milk animals and availability of insufficient quantity of surplus milk. But the leaders were determined and committed for their goal to establish a milk union and under the inspiration & guidance from late Shri Maneklal Gandhi, Late Shri Ratilal Trivedi & Late Shri Dahyabhai Naik, in May,1973 The Panchmahal District Co-op.

Milk Producers Union Ltd., got registered under Gujarat State Co-op. Act. 1962. Initially, due to lack of milk processing facilities in district, the milk procurement around 7000 kg per day from about 40 village primary dairy co-op. societies was diverted to the neighboring milk unions of Sabarkantha, Kheda & Baroda.

10

PRESENT PRODUCTS MIX

Panchmahal Dairy is a unique place processing several products from the basic raw-material. i.e. Milk, These products are as under and are immensely popular in and around city of Godhra.

MILK
AMUL GOLD AMUL SHAKTI AMUL SLIM & TRIM

BUTTER MILK

GORAS JEERA CHHAS

FLAVORED MILK

ELAICHI KESAR

BUTTER

TABLE BUTTER WHITE BUTTER

GHEE
AMUL
11

PDCOMPUL PRODUCTS

Amul Gold Fat 6.0% SNF 9.0%

Amul Shakti Fat 4.5% SNF 8.5%

Amul Taaza Fat 3% SNF 8.5%

Amul Slim N Trim Fat 1.5% SNF 9.0%

Amul Slim N Trim Fat 1.5% SNF 9.0%

Chhas

Panchamrut Ghee

Amul Ghee

Amul Ghee

Panchamrut Ghee

Amul Ghee

Amul Butter

12

YEAR
1973 1975 1977

PARTICULARS
Registration of milk union under Gujarat Co-op. Act,1962. Milk Union Administration was taken over by Gujarat Dairy Development Corporation (GDDC). The first election was held to elect the Board of Milk Union. The Then Chief Minister of Gujarat Humble Late Shri Babubhai Jashbhai Patel laid foundation stone for establishing Dairy building at Godhra, in august presence of the then Panchayat Minister of Gujarat Humble Late Shri Maneklal Gandhi.

1979 1982

Milk Chilling Plant of 30,000 LPD capacity commissioned at Godhra, by GDDC. Tech. Input Services namely Animal Health & Artificial Insemination started under OF-II. The Administration of District Co-op. Milk Union was handed over to the elected Board, by GDDC. The chilling plant capacity was expanded from 30,000 to 60,000 kg per day. Ghee packing started. The milk processing capacity of plant was expanded from 60,000 kg to 1, 00,000

1983

1984

1985

kg per day. The Powder Plant having capacity of 10 MT per day was commissioned. Dairy Herd Improvement Program me Actions (DIPA), a field progeny testing

1993

programmed launched in collaboration with Baroda & Sabar Milk Unions under the technical guidance of NDDB. Milk Union got registered under Milk & Milk Product order (MMPO), Govt. of

1994

India. A Milk Chilling Plant at Chopada (Lunawada) commissioned to process 50,000 kg milk per day. Cluster Concept to increase coverage under Artificial Insemination was adopted.

1995 1996

Liquid Milk Marketing in brands of Amul Gold & Amul Shakti started through GCMMF. First consignment of Amul Ghee exported to Dubai through GCMMF. A Concept of Total Quality Management (TQM) adopted.

13

Milk Union got certification of Merit from National Productivity Council of India, for productivity performance during the year 95-96. Milk Union got certificate of Excellence by Institute of Economic Studies (IES), New Delhi for excellence in productivity, Quality Innovation & Management. 1997 Milk Union received Udyog Ratna Award. Milk Union started production of Table Butter under Amul Brand. Milk Union received National Productivity Award. 1998 The then Chief Minister of Gujarat Humble Keshubhai Patel laid foundation stone for establishing Milk Chilling Centre at Limadi(Ta: Zalod). The Milk Union started village Self Leadership Improvement Programmed known as Internal Consultant Development Programmed through GCMMF. Milk Union got Udyog Rattan Award. 1999 The Commercial Production of Panchamrut Goras initiated. The Commercial Production of Amul Gulab Jamun Mix started. 2000 The Milk Union obtained ISO: 9001 & HACCP certification from Quality Assurance Service, (QAS), and Australia. Limadi Milk Chilling Centre having capacity to process 30,000 kg per day commissioned. The Milk Chilling Capacity of Chopada Chilling Centre was doubled from 50,000 kg per day Panchmahal Cattle Feed Factory having capacity of 100 MT per day, inaugurated by Humble Chief Minister of Gujarat Shri Narendrabhai Modi. Milk Union got Udyog Bharati Award by India Achievers Forum, New Delhi. Milk Union got Bhatia Nirman Gaurav Award by Business & Economic Society for reforms for Role in the process of Economic Reforms. 2005 The Milk Union started installing Bulk Milk Cooling Unit at Village Dairy Cooperative. Milk Union got Recognition Certificate in linking tradition & technology for Dairy Farmers by World Bank, Washington DC. 2006 The Milk processing capacity of the Milk Unions Plant expanded from 2, 00,000 kg per day to 4, 00,000 kg per day. The commercial production and distribution of bypass cattle feed started.

2001

2003

2004

14

VISION

We strive to achieve these goals through Continuous improvement in the quality of our processes, products & services. Innovative Techniques of Production and Services. Development of dedicated and devoted workforce. Adoption of high safety and environment standards. We shall put all our efforts to be the best if not the biggest.

Dr R.S. PATEL MANAGING DIRECTOR

15

COMPANY PROFILE OFFICE NAME: THE PANCHMAHAL DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD., (PDCOMPUL) Godhra 389 001

Ph No.

: (02672) - 261782, 261783, and 261784 Fax No.: (02672) 260327

Email

: amulpan@panchmahalunion.coop

Website : www.panchamrutdairy.org
OFFICE:
P.O. LUNAVADA ROAD -389001 Dist -PANCHMAHAL Gujarat (INDIA) Pin-389001

FORM OF ORGANISATION:
Joint Venture

SIZE OF ORGANISATION:
Large Scale Organization

BANKES:
Bank of Baroda, Station Road Branch, Godhra State Bank of India, Godhra The Panchmahal District Co-operative Bank Ltd. Godhra

AUDITORS:
Shri Y.A. Baloch Special Auditor (Milk) Godhra

CHAIRMEN:
SHRI AAHIR (BHARWAD) JETHABHAI GHELABHAI

16

BOARD OF DIRECTORS
S.R. NAME & ADDRESS OF BOARD OF DIRECTORS 1 SHRI AAHIR (BHARWAD) JETHABHAI GHELABHAI AT & PO : ANIYAD,TA:SHAHERA 2 SHRI CHAUHAN ARJUNSINH NARVATSINH AT & PO : KANOD, TA: KALOL 3 SHRI PATEL BHANUPRASAD HIRABHAI AT & PO : LIMBODARA, TA: LUNAWADA 4 SHRI PATEL JAYANTILAL KANTILAL AT : JITPURA(HO), PO: BHALADA, TA: LUNAWADA 5 SHRI CHAUHAN JUVANSINH LALSINH AT: PAGIYANI SAVLI, PO: DALVAI SAVLI, TA: LUNAWADA. 6 SHRI PATEL AMBALAL KALUBHAI AT & PO : LADPUR, PO:KAJALI, TA: KADANA
17

DESIGNATION

CHAIRMAN

DIRECTOR

DIRECTOR

DIRECTOR

DIRECTOR

DIRECTOR

SHRI PATEL RAMANBHAI SAKHABHAI AT : LEBANI VAVO, PO: KAJALI, TA:KADANA DIRECTOR

SHRI CHAUHAN MADHAVSINH BHARATSINH AT : DUDHAPURA, PO: RAYANMUWADA, TA: GHOGHAMBA DIRECTOR

SHRI PATEL RAMABHAI NARANBHAI AT : GUVALIYA,PO: KALIBEL, TA: SANTRAMPUR DIRECTOR

10

SHRI SOLANKI BHUPENDRASINH SHRI SOLANKI BHUPENDRASINH PRABHATSINH AT : VERAMA, PO: ZARA,TA:LUNAWADA DIRECTOR

11

SHRI PATEL SHIVABHAI LALABHAI AT : LIMDA MUWADI,PO: MOTI SARSAN, TA: SANTRAMPUR DIRECTOR

12

SHRI MALIVAD RANCHHODBHAI AKHMABHAI AT : KOLAMBI,PO: KHANPUR,TA: KHANUPR DIRECTOR

18

13

SMT PATEL SUSHILABEN DINUBHAI AT & PO : NADISAR,TA:GODHRA DIRECTOR

14

SMT PARMAR ILABA JAYDRATHSINH AT & PO : KANJARI,TA:HALOL DIRECTOR

15

SMT PATEL JIVIBEN VIRABHAI AT : DABHIYANA MUWADA,PO:NARODA, TA: KHANPUR DIRECTOR

16

JILLA REGISTRAR SHRI CO-OPERATIVE SOCIETIES MULTI STOREYED BUILDING, GODHRA, AND DIST: PANCHMAHALS. REPRESENTATIVE OF CO-OPERATIVE DEPTT.

17

SHRI JAYEN MEHTA/ SHRI ATULKUMAR AGRAWAL ASST.GEN.MGR(MKTG) ASST.GEN.MGR(ACCT & AUDIT) REPRESENTATIVE GCMMF LTD., ANAND. OF

18

SHRI M.C. SHAH SR MANAGER SHRI( FPS)

REPRESENTATIVE OF NDDB. ANAND.

19

DR. R. S. PATEL MANAGING DIRECTOR

BY DESIGNATION

19

HEAD OF DEPARTMENT

SR.NO. 1.

DEPARMENT ADMISTRATIVE DEPARTMENT PROJECT & INPUTS (P & I)

EMPLOYEE NAME (A) Sh. SURESH G. PATEL (M.D.) (B) Sh. BHAUMIK K. TRIVEDI (Asst. Manager) (A) DR. R.D. PATEL (SR. MANAGER) (B) DR. N.D.PATEL (SR. MANAGER) (C) DR. P. N. BHALOSIA (SR. MANAGER) (D) DR. K. J. PATEL (DY. MANAGER) (E) DR. M. M. PATEL (DY. MANAGER) (F) DR. R. T. SHARMA (DY. MANAGER) (G) DR. J. J. JOSHI (DY. MANAGER) (H) DR. M. R. PATEL (DY. MANAGER)

2.

3.

PROCUREMENT

(A) Sh. Y. I. PATHAN (MANAGER) (B) Sh. UMESH B. JOSHI (MANAGER) (A) Sh. H. S. SHAIKH (MANAGER) (A) MR. N. N. PATEL (SR. MANAGER) (B) MR. JAYPRAKASH PANDYA (DY. MGR) (C) MR. B. M. (ASST. MANAGER) (A) MR. A. S. SAXENA (DY. MANAGER) (B) MR. K. N. PATEL (MANAGER) (A) MR. CHIRAG V. PATEL (ASST. MANAGER) (A) MR. S. B. PATEL (ASST. MANAGER) (A) MR. DHIREN C. GANDHI (ASST. GEN. MANAGER) (B) MR. DILIP NIRMAL (MANAGER) (A) ALOK SAXENA (MANAGER) (A) H. J. PATEL (MANAGER) (A) P. J. RAMI (DY. MANAGER)

4. 5.

PROCESSING ENGINERING

6. 7. 8. 9.

LABORATORY MARKETING PURCHASE & STORE ACCOUNTING

10. 11. 12.

QA QC IT DEPARTMENT

20

ORGANISATION STRUCTURE

21

AWARDS OF PDCOMPUL Awards received by PDCOMPUL during last four years.

Sr. No. Name of the Award Purpose of the Award Name of the Date of receiving Organization the Award Bureau of Energy Efficiency (BEE),Min. of Power, Govt. of India 14 December 2007

Year 2007 1.) National Energy Conservation For consistent performance on Award - 2007 : Second Prize in energy conservation. the Chlor-Alkali Sector

2.)

3.)

4.)

5.)

6.)

7.)

8.)

9.)

10.)

Year 2006 AIOE Industrial Relations Corporate initiative in the field All India 05 January 2007 Award 2005-2006 of industrial relations, social Organization of security and promoting BiEmployers partism Safety Innovation Award -2006 In the field of Safety Institute of 06 September Excellence Engineers, New 2006 Delhi Indian Society for Training & For Innovative Training Indian Society 01 July 2006 Development (ISTD) Certificate Practices: 2005-06 National for Training & of merit 2005-06 Level Development (ISTD), New Delhi SCOPE Meritorious Award In the field of Good Corporate Standing 26 June 2006 2004-05 Governance Conference of Public Enterprises (SCOPE), Delhi TERI's Certificate of For case study of Recovery of TERI - The 26 June 2006 Appreciation for Environmental Calcium Chloride project at Energy & Excellence award - 2005 Dahej which uses the waste Resources effluent to make useful product Institute, New reducing pollution in sea. Delhi Greentech Safety Silver Award Safety Excellence at Dahej Greentech 08 April 2006 2006 Complex Foundation, New Delhi Greentech Safety Gold Award Safety Excellence at Vadodara Greentech 08 April 2006 2006 Complex Foundation, New Delhi FGI (Federation of Gujarat) For Environment Preservation FGI (Federation 03 April 2006 award for Excellence in & Pollution Control at Dahej of Gujarat), Environment 2005 (Dahej) Complex Vadodara IMC Ramakrishna Bajaj For Quality Management Indian 06 March 2006 National Quality Certificate of Systems adopted at GACL (as Merchants' Merit 2005 Award in per quality criteria of Chamber, Manufacturing Category at management systems of Mumbai
22

National level Malcolm Baldridge, USA) 11.) Appreciation Prize for the case For "Economics of Quality" for Quality Council 03 March 2006 study on "Economics of the systems at GACL of India, Quality" Ministry of Commerce & Industry, Govt. of India 12.) Jamnalal Bajaj Uchit Vyavahar For Fair & Ethical Business Council for Fair 24 February 2006 Puraskar 2005 Practices Business Practices (CFBP), Mumbai 13.) Recognition by ICSI (Institute of For National Excellence in Institute of 13 January 2006 Company Secretaries of India) compliance of law, ethics and Company considering GACL in the list of best management practices in Secretaries of Top 25 Companies for the year the field of Corporate India (ICSI), 2005 Governance New Delhi Year 2005 House Keeping

14.) First Prize Winner In Category C for Chemical Process Industries for " House Keeping " 15.) Certificates of Appreciation & Honour for Safety Performance (Vadodara) & Certificate of Honour (Dahej) 16.) National Energy Conservation Award 2005: National Level (Chlor-Alkali Sector) 1st prize (Vadodara Complex) & Merit Certificate (Dahej Complex) 17.) IMEA-2005 Award India Manufacturing Excellence Award for Housekeeping & Effective Deployment of QMS

18.)

Green Tech Environment Excellence Award - 2004-05 (Silver) 19.) Green Tech Environment Excellence Award - 2004-05 (Gold) 20.) AMA-Metrochem Outstanding Manager of the Year Award 2005 (Declared for MD, GACL)

Baroda 28 December Productivity 2005 Council, Vadodara Safety Performance Gujarat Safety 16 December Council & 2005 Factory Inspectorate, Govt. of Gujarat Energy Conservation at Bureau of 14 December Vadodara Complex Energy 2005 by His Efficiency Excellency the (BEE),Min. of President of Power, Govt. of India. India Excellence in Housekeeping & Frost & 09 December Effective Deployment of QMS Sullivan, 2005 Mumbai,(USA based organization) Environment Excellence at Greentech 22 October 2005 Vadodara Complex Foundation, New Delhi Environment Excellence at Greentech 22 October 2005 Dahej Complex Foundation, New Delhi Outstanding Manager of the AMA 17 July 2005 Year (Ahmedabad Management Association)Metrochem, Ahmedabad
23

21.)

22.)

23.)

24.)

25.)

Greentech 12 May 2005 Foundation, New Delhi Greentech Safety Excellence Safety Excellence at Vadodara Greentech 12 May 2005 (Gold) Complex Foundation, New Delhi Merit Award for ICWAI National Merit Award for Institute of Cost 12 March 2005 (Vadodara) Excellence in Cost & Works Management - 2004 Accountants of India (ICWAI), New Delhi Certificate of Appreciation for Safety Performance at Gujarat Safety 18 January 2005 Safety Performance Vadodara Complex Council & Factory Inspectorate, Govt. of Gujarat Certificate of Honour for Safety Safety Performance at Dahej Gujarat Safety 18 January 2005 Performance Complex Council & Factory Inspectorate, Govt. of Gujarat Year 2004

Greentech Safety Excellence (Silver)

Safety Excellence at Dahej Complex

26.) National Energy Conservation Energy Conservation at Dahej Award 2004 1st prize (ChlorComplex Alkali Sector)

27.)

Greentech Environment Excellence (Silver) Greentech Environment Excellence (Gold) Greentech Safety Excellence Award (Silver)

Environment Excellence at Vadodara Complex Environment Excellence at Dahej Complex Safety Excellence at Dahej Complex

Bureau of 14 December Energy 2004 awarded by Efficiency Hon'ble Prime (BEE),Min. of Minister of India Power, Govt. of India Greentech 04 November Foundation, 2004 New Delhi Greentech Foundation, New Delhi Greentech Foundation, New Delhi ATIRA: Ahmedabad 04 November 2004 21 June 2004

28.)

29.)

30.) Dr. H.C. Srivastava Memorial Developing Eco-Friendly cold Award 2003 bleaching process using Hydrogen Peroxide of GACL for Hand Processing Sector of Textile industry

26 February 2004 at National Conference of Textile Research Association, Mumbai

24

PRODCTION DEPARTMENT

INTRODUCTION:People have endless wants & to satisfy these wants they need various goods & services. The production Department produces these various goods. The main function of production department is to convert raw materials into finished goods by processing them & creating utility out of them. Production department has to first of all estimate the demand & accordingly production must be done for which arrangement for raw materials. Finance & provision for selling. It has to be made. Thus production department is interrelated with the personnel, finance, marketing dept. There are collected about 3, 50,000 litter milk from which 3, 20,000 litter milk is used for milk packing & 30,000 litters are used for making milk products.

RAW MATERIAL USED

The basic raw material that is brought inside the dairy is the milk. The milk is the only component which is a raw material. As it progresses, it keeps on changing its forms from milk to curd, buttermilk, flavored milk, butter, ghee etc. The other raw materials used are synthetic colors, sugar, gelatin etc.

Different products are manufactured by using different materials. They are :

Products Flavored milk Buttermilk Butter Ghee Curd

Raw Material Used Milk (toned), sugar, colors, essence Curd, water, sour milk Milk (pasteurized), color, salt, water White butter, water Toned milk, culture

25

PRODUCTION CYCLE

This refers to the time on cash involved in the manufacturing of goods. It covers the time span between the procurement of raw material and the completion of manufacturing process leading to the production of finished goods. During such cycle the funds are locked up in the business. The gap between raw material purchased and finished goods sale is relevant and working capital need during this time has to be met, hence production cycle are improved.

26

ACTIVITIES OF THE PRODUCTION DEPARTMENT

There are 1100 registered co-operative societies giving milk to Baroda Dairy. Baroda Dairy has set up a modern plant for the production process. It has established its plant in a modern high tech style which functions nearly 80% automatically.

1. Raw Material Receiving Dock :It is a big open area, where the raw milk is brought from various societies by way of tankers and cans. The cans are emptied in the milk tank with the help of tankers and cans. The cans are empty in the milk tank by the way of belt conveyors system and then after the cans are washed in automatic washing machine. The average number of cans washed per minute are 5 to 6. Before distilling cans the milk is graded and weighed. The sample from the can are taken and sent to the laboratory where they are graded in terms of fats and S.N.F. once the milk is collected in the tank, the net process will start to separate the fat and S.N.F from the milk and cash will be separately stored.

2. Pasteurization :The term pasteurization when used in association means heating treatment by heat treatment and cooling to suitable temperature before distribution. After the separation of FAT and SNF the milk is passed through the heat section of pasteurization and is the very first step of pasteurization. The milk is boiled up to 74c for 15 seconds in the machine and then very net second it is chilled at 4 to 6 C instantly. This will lead milk to be cream less that is pasteurized.

27

3. Standardization :-

To reduce the fat percentage of milk SMP or skimmed milk is added and to increase the fat percentage, cream is added. Cost of pouch is worked out according to the stand of the milk. After standardization, milk is stored in silos. Sample is taken for analysis of fat, SNF, acidity MRP test etc. If the result is ok, it is sent to the storage tank. Milk sample from the same further subjected to analysis prior to packing.

4. Homogenization :-

It

is

the

process

of

mixing.

Humanizer

is

used

to

homogenize

milk,

butter milk and flavored milk.

28

5. Pouch packing Section :-

There are 14 machines used for packing the milk pouches. The milk from pasteurization section is restored in the tanks and from there it is brought to the section by the help of pipelines. Here the machines are operated automatically giving the bags of 500 ml each. The number of bags to be filled with the milk can be derived through the regular in machine. An average output number of bags per hour are 3000 pouches. The department also consists of the carats watching system and it is also fully automatic.

6. STORING :Milk is delivered to grocery stores, convenience stores and restaurants in refrigerated trucks that keep milk cooled to 1 - 4C. The stores take their milk and immediately place it in their refrigerated storage area. Because fresh milk is so important to our diets, dairies, and our health.

29

PRODUCT SPECIFICATION
Panchmahal dairy at present has four main types milk i.e. Toned Milk, Full cream/Whole Milk, Standardized Milk, and Double Toned Milk.

Types of Milk Marketed:

Sr. No. 1. 2. 3. 4. Product Toned Milk Full cream/Whole Milk Standardized Milk Double Toned Milk Butter Milk Brand Name Amul Taaza Amul Gold Amul shakti Amul slim and Trim Panchamrut Gorus FAT & SNF % FAT:-3.0% SNF:-9.0% FAT:-6.0% SNF:-9.0% FAT:-6.0% SNF:-9.0% FAT:-1.5% SNF:-9.0% FAT:-0.1% SNF:-5.7% Pack Size 500ml 500ml 500ml 500ml AND 200 ml 500ml Price (rs) 13.00 17.00 15.50 12.00 5.00 7.00 Launch 1979-80 25-6-1993 25-8-1999 08-1-2001

5.

01-4-1999

Beside liquid milk the dairy also manufactures Ghee, Table Butter, Flavored milk (BRAND NAME Amul Kool), Skim Milk powder, under brand name Panchamrut. As per the rolling plan of GCMMF, the dairy manufacture and suppliers milk and milk products o them round the year. Time to time GCMMF conducts market research and suggests new products for the union, which the unions take over.

Sr. No. 1. 2.

Product Table Butter Ghee

Brand Name Amul Amul, panchamrut Sagar

Pack Size 100gm 500ml (pouch) 15 kg Tin 25kg (Bulk pack), 1kg Pack 500 gm Pack

3.

Skimmed Milk Powder

30

MILK:One of the most versatile foods consumed by us. All children start their with mothers milk and continue to use it in one other throughout their life. It is the secretion from the mammary glands of a lactating mammal. The white fluid, know as milk, is made up of milk fat and other milk solids.

Imp. Constituents of MILK

Fat

Water

Solid Non Fat

snf

Vitamins A, D, K, E

Proteins

Minerals Sodium, Cal, Iron etc

Enzymes, Vitamins B & B12

31

MILK PROCESSING BLOCK DIGRAM:-

32

MANUFACTURING PROCESS:-

There are 1894 registered co-operative societies, which supply milk to Panchamrut dairy. Panchamrut dairy as set up its plant which functions 80% automatically and 20% manually.

The stages involved in the production process of various products are as follows:-

PRODUCTION OF MILK: FLOW CHART OF RAW MATERIAL

Receiving Raw milk collection Unloading Grading Weighing Sampling Chilling & Storage

33

Brief explanation of process and its flow chart:-

1. Milk collection :Milk is collected two times a day. i.e. once in the morning and the other in the evening.

2. Unloading and Grading :Cans are unloaded from vehicles and graded by putting plunger inside the can and rotate to check whether the milk is in liquid form or lumps have been formed. If the lumps are observed or if milk has become curd it is not allowed to pass through the conveyor belt.

3. Weighing and Sampling :Weighing of different milk (cows and buffaloes) of different societies is taken and recorded in computer. General sample of 100 ml per society is taken for analysis. 1 ml of Potassium dichromate is added as preservation in sample bottle before taking sample.

4. Chilling and Storage :Raw milk is chilled at temperature below 14C and passed from filtration in back type filter. After filtration it gets stored in storage

34

FLOWCHART FOR MILK PROCESSING SYSTEM

Milk receiving from RMRD

Milk get pasteurized at 75-85 c. and then chilled at 4 c. (extra cream is absorbed from milk)

There after the milk is handled to creaming plant be pipes.

The cream is added to milk according to product specification & handled to final sales to filling plant.

Gold/Shakti/cow milk/ slim & trim

35

PRODUCTION OF BUTTER:-

There is transferred of cream from pasteurisation section to butter section. Then cream is pasteurised at 85c to 95c for 15 seconds. Then this pasteurised cream is stored for one night. Then it is turned with help of churner. Then it is again churned after addition of colour. Afterwards, buttermilk is separated and there is washing with pasteurised water. Then salt is added and final working is carried on. Thus, the butter gets ready for packing. It is packed in 100gms 1500gms pack & stored in a cold storage room

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FLOWCHART OF BUTTER
Pasteurized Milk (85c to 95c)

Cream Separator

Cream

Over night Storage

Butter Churn

Sample for Analysis (FATS %)

Addition if colour

Churning

Breaking

Draining of Butter (dry) milk Washing with pasteurized water (double wash

Slow working

Dry Salting

Final Working

Unloading

Sample for Analysis

Packing

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PRODUCTION OF GHEE:"PANCHMARUT DAIRY" also manufactures ghee. Ghee section is just attached to RMRD (Raw milk receiving dock). The fat obtained from the milk is used to produce ghee. Which is kept in two meting waft one of 10 kgs and another of 500 kgs. Then it is passed through 110C to the filtration plant and thereafter it is brought to the tub giving as much as 55% heat, then it is stored in one of the three tankers in the section. Next to' the storage tank, the pouch packing machines are attached. Thick films of 129130 microns are used for packing the ghee.

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- Ghee Packing

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FLOW CHART FOR PRODUCTION OF GHEE

White Butter

Pre-stratification method

Clarified Fat

Ghee Kettle (stream 105-115c.)

Clarification (71-75 RPM)

Storage (37 c.)

Packing (38-40 c.)

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PRODUCTION OF FLAVOURED MILK:First of all these is addition of sugar in toned milk, which is pasteurised. Then there is homogenisation out 500psi (pound per square inch). PSI is a unit that denotes pressure. Afterwards, there is filtration & pasteurisation. Then it got stored in a tank through pipelines. Then there is standardisation & addition of colour & essence. Then it is packed in bottle/ pouch of 200 ml.

FLOW CHART FLAVOURED MILK

Toned milk (pasteurised)

Addition of sugar (8%)

Homogenisation (60 c. AT 1500 P S.) & 500 PS.

Filtration

Pasteurisation

Storage

Standardisation

Addition of colour & essences

Packing

Bottle filling/pouch filling 41

PDCOMPUL ACCOUNT POLICY Basis of accounting:-

The accounts are prepared on accrual basis in accordance with

generally accepted accounting principles. (GAAP)

Fixed Assets:- Fixed assets are stated at cost. Accumulated depreciation is shown on fund. Depreciation:method.

Depreciation on Fixed assets is provided for on written down value

Capital work in progress:- The cost incurred for projects under commissioning and others
fixed assets, the constructions / installation / acquisition of which is not completed, are include the under the capital work in progress and the same are classified to the respective assets on its completion except in the cases where the project account are settled.

Investment:- Investment is stated at fair market value of cost price whichever is lower. Contingent liability:- Contingent liabilities are not provided for and are disclosed by way of
notes.

Valuation of inventories:- Inventory is valid as under.

Stores and spared and trading material. At lower of Cost or Net Realizable value .

Sales :- Sales are recognized on delivery. Sales are exclusive of Canvat and Taxes.

Retirement benefits:- Regular contribution to provident fund, super Annotation and Gratuity is made. The Liability towards gratuity and super Annotation for its employees are fund with Life Insurance Corporation of India.
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SWOT ANALYSIS OF PDCOMPUL

STREANTH Single largest milk producer in the country coin a capacity of 27000 TPA having industry share of 13.75% Low cost power from GIPCL Godhra. Integrated downstream plants. In house research and development. Dedicated men power. Proximity to raw material source and market. Excellent industry relation. Strong and committed work force.

Weakness High Price. Imbalance in product quality. Companys products are in commodity group and the price of product driven under AMULs price policy and therefore the prices are purely market driven. Extensive utilization of gas.

Opportunity Foreign market the demand for companys products in foreign market is high therefore PDCOMPUL has golden opportunity to gain share market by exporting its products to foreign countries. Excess capacity in power plant will help in setting up downstream projects for increasing the capacity of caustic soda production. Threats The chlore alkali industry in cyclical in nature. Dependence on the performance of consuming sectors. Threats of impact of slow down Indian economic growth. Highly competition market for the products of the company.

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FINANCE DEPARTMENT

Types of accounting method

PDCOMPUL is following all accounting standards and maintain books of Account as per the companys act 1956. The main feature of PDCOMPUL is that it prepare books of account four times (1) ON THE DAILY BASIS (2) ON THE MONTHLY BASIS (3) ON QUARTERLY BASIS (4) ON ANNUALLY BASIS

Thus the financial performance is verified regularly and the company is able to get true and fair view of its financial position.

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SECTION WISE FUNCTION OF FINANCE DEPARTMENT

SALES ACCOUNTING Maintain the details of sales and debtor account and related adjustment. Sales Accounting has to deal with the external parties such as Government Bodies, Sales Representatives, and Dealers, manufacturers, Direct Dealers, Retail Traders etc. The main function of this section is Sales Collection and. Completes all the formalities related to sales tax, Excise with the due date concerned. Collects sales data and prepare all the data related to sales with all customers keep in mind. They also look into the sales collection on daily basis, sales target to be met daily, everyday procurement of the orders, price structure of the product and daily dispatch. The preparation of debit note and credit note. Prepares discounts chart. The discount given depends on the quantity the customer lifts from the company.

BILL PASSING

All the bills that are raised come to this department for the sanction. Even when raw materials are purchased, the supplier sends the bill to the purchase department, which ten sends to the finance department. It is here that all the particulars are checked and approved. Only after the bills have been approved payments will be made. Any department requiring any payment of the bill needs to first send the bill here for approval. The company enjoys E-PAYMENT for CENVET, EXCISE and also the salaries.

BANK SECTION
Check out the details of banking transactions and maintain the balance of bank. (Bank reconciliation statement). Bank section looks after deposits in cash and bank account. It also collects checks from marketing department. Banks like HDFC, BOB, SBI, and AXIS bank are involved in the transaction with PDCOMPUL. Following are the basic task performs by this section.

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 To consolidate the bank account. Take into account the cash credit limit. Cash credits are monitored so that interest payment can be control Every month cash flow statement is prepared PDCOMPUL is using E-payment for ease of payment. Credit limit of the company depends on the negotiated days contract.

LOAN SECTION

When new projects are taken up, a project report is prepared based on market survey. The report includes the present and future estimates, financial aspects i.e. estimated cost, budget, etc. production capacity, market trends and the likely sales when project pass through then they goes to financial institution for its final approval by this section. This section does negotiation with bank for payment terms and rate of interest and makes long term arrangement for new project. Loan of any employee as per the rules is considered under this section.

INVENTORY ACCOUNTING SECTION

This section is concerned with the Valuation of Inventory. The Stores Department prepares a Goods Receipt Voucher. Based on this voucher, cost of inventory is calculated. This goes to say that the quantity is all checked by the stores, but the amount is checked by this department based on the order placed. This section needs to monitor the amount of inventory in the company. This also includes the stores and spares items in the organization. It also prepares the Variance Report based on the purchase order placed and the materials received. Monthly statement of inventory send to bank for the hypothecation of the stock of capital.

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COSTING & BUDGTING SECTION

Make estimation of cost to the company (CTC) and budget in advance and try to reduce the cost and improve efficiency. Costing is done not only for whole activity but also for individual items. This section prepares the monthly cost incurrence budget and monitors it. They have to ascertain the variable cost of the items being produced. This is because the knowledge of the variable sold is very essential as if an item is sold below the variable cost it would incur loss Costing is done not only for whole activity but also for individual items. This section prepares the monthly cost incurrence budget and monitors it. They have to ascertain the variable cost of the items being produced. This is because the knowledge of the variable cost is very essential as if an item is sold below the variable cost it would incur loss to the company.

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CENTRAL ACCOUNTING SECTION

Central Accounting Section is the Heart of Finance. Activities of all other section are connected with central accounting section. The different functions of this section are: preparation of the Balance Sheet and the Profitability Statement financial statements and accounts prepare on monthly, quarterly, & annually as per the requirements and send to SEBI and the stock exchange. Profitability is calculated on day-to-day basis and posts it on intranet and reported to Managing Director.

Verify the Account maintain by all the department and make financial analysis of the statement and also five suggestion and recommendation. They also involved in Annual Report preparation and provide all required information to the management. Find out profitability ratio every day to check whether the company is going correctly as per the targets.

INCOME TAX & INSURANCE SECTION

This section takes care of all tax related issues. They are involved in tax planning and update all the laws with respect to taxation. This becomes very important for the company because many decisions are taken, keeping in mind its tax implication. The budget in this respect has also to be made for the payment and provision of advance tax. They also manage the insurance part PDCOMPUL basically has the insurance for the Fixed Assets and also a Group Insurance for the employees. For deciding on insurance the company calls in for quotation from various companies and decides based on the lowest and also considering the reputation. Involved in updating of taxation as per rules. Tax planning is under this department as part of prior responsibility. Insurance of all the fixed assets.

Tax consultants are appointed to follow up with tax laws.

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ESTABLISHMENT & CASH SECTION

Do all employees related work like prepare pay bill of employees, income tax, pension and gratuity, leave encashment, LTA etc. this section works in union with the HR department. The calculations of the deductions like PF. Loans etc. are done here. They also incorporate into the various allowances like.

Housing allowance Conveyance allowance Medical allowance Shift allowance Professional skill development allowance Transportation allowance City compensation allowance

MAIN FUNCTIONS OF THIS SECTION ARE

Salary Overtime Income tax deduction of employees Preparation of FORM 16,12B Statutory government payment like professional tax, LIC PF, loans and advances to employees Employee claims

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WORKING CAPITAL

Working capital refers to the cash a business requires for day to day operation or more specifically for financing the conversion of raw material into finished goods, which the company sells for payment. Working Capital Management or Short term Financial Management is concerned with decision relating to current assets and current liabilities.

CONCEPTS OF WOEKING CAPITAL

There are two concepts of working capital Gross and Net. Gross Working Capital refers to the firms investment in current assets. Current assets are the assets which can be converted into cash within an accounting year and include cash, short-term securities, debtors, (accounts receivable or book debts) bills receivable and stock (inventory).

Net Working Capital refers to the difference between current assets and current liabilities. Current liabilities are those claims of outsides which are expected to mature for payment within an accounting year and outstanding expenses. Net working capital can be positive or negative. A positive net working capital will arise when current assets exceed current liabilities. A negative net working capital occurs when current assets exceed current liabilities are in excess of current assets.

The two concepts of working capital-gross and net-are not exclusive, rather, they have equal significance from the management viewpoint.

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NATURE OF WORKING CAPITAL

Working capital management is concerned with the problems that arise in attempting to manage the current asset, the current asset, the current liabilities and the interrelationship that exists between them. The goal of working capital management is to manage the firms current assets and liabilities in such a way that a satisfactory level of working is maintained. This is so because if the firm cant maintain a satisfactory level of working capital, it is likely to because insolvent and may even be forced into bankruptcy. The current assets should be large enough to cover its current liabilities in order to ensure a reasonable margin of safety. If a companys current assets do not exceed its current liabilities, then it may run into trouble paying back creditors that want their money quickly. Each of the current assets must be manage efficiently in order to maintain the liquidity of the firm while not keeping too high a level of any one of them. The interaction between current assets and current liabilities is, therefore, the main thing of the theory of working management.

PROBLEMS WITH EXCESSIVE AND INADEQUATE WORKING CAPITAL

EXCESSIVE WORKING CAPITAL

Its results in unnecessary accumulation of inventories. Thus chances of inventory mishandling, waste, looses increases and capital locked in it. Its an indication of defective credit policy and slack collection period. Consequently, higher incidents of bad debts which adversely affects profits. Excessive working capital makes management complacent which degenerates into managerial inefficiency. Tendencies of accumulating inventories tend to make speculative profit grows. This may tend to divide policy liberal and difficult to cope with when the firms are unable to make speculative profits.

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INADEQUATE WORKING CAPITAL

Shortage of working capital stagnant growth. It becomes difficult to implement operating plans and achieve the firms profit target.

Operating inefficiencies creep in when it becomes difficult even to meet day-to-day commitments. Paucity of working capital finds renders the firms unable to avail attractive credit opportunities. The firm loses its reputation when it is not in a position to cover its short-term obligations. As a result, the faces tight credit terms.

DIMENTSIONS OF WORKING CAPITAL MANAGEMENT

WCM is concerned with all aspects of managing current assets and current liabilities. The significant dimensions which require the attention of financial executives are

Managing investment in current assets. Financing of working capital. Inter-relatedness. Volatility and reversibility.

The amount of investment in any current assets ordinarily varies from day to day, the average amount or level over period of time can be used in determining the fluctuating and permanent investment in current assets. This distinction is of great importance in devising appropriate financial strategies.

The mix of the fianc for working capital which may be a combination of spontaneous, short-term and long-term payable that arise spontaneously in the firms day to day operations constitute spontaneous sources of financing paper are the most common example of short term working capital finance. Term loans, debentures, equity and retained earnings constitute long term sources of working capital finance.

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Inter-relatedness is the most distinguishing characteristic of working capital dimensions. Cash is used for acquiring raw materials are transformed into finished goods, finished goods, generally sold on credit, are converted into accounts receivable (book debts), and finally, accounts receivables on realization, generate cash. Thus all current assets decisions are inter-related, inventory decisions are linked to trade credit decisions. It is important to pay attention to the inter-related nature of current assets and current liabilities and take into account major interactions that influence the working capital investment and financial decisions.

Volatility is the reversibility feature of current assets and current liabilities, which mean that the cash flow related to these. Could be readily reversed. The level to investment in current assets is influenced by a variety of factors, which may be as erratic as labor unrest or flooding of the plant. Seasonal and cyclical fluctuations in the demand are a common cause of rapid changes in investment in current assets and the financing required.

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DETERMINANATS OF WORKING CAPITAL

GENERAL NATURE OF BUSINESS

The working capital requirements of a firm are closely related to the nature of its business. In a manufacturing concern they have to maintain more of raw materials and inventory, which means more of investment and capital needs. If the business is a service based, then there is modest need of working capital because of short operating cycle and which sells predominantly on cash basis.

CREDIT MANAGEMENT

Are the sales on cash or credit bases?

If sales are based on cash then there is less need of working capital and if the sales are based on credit then working capital is needed more. Business firms generally sell on credit, account receivable represent and important assets category. The important dimensions of a firms credit policy are:

credit standards credit period cash discount policy collection policy

Liberal credit standards and longer credit period push sales up. This is however, accompanied by a higher incidence of bad debt loss, larger investment in receivables and higher cost of collection as a result higher need of working capital stiff credit standards have opposite effects. Liberalizing the cash discount policy tends to enhance sales, reduce the average collection period however, increase the cost of discount. Tightening the cash discount policy has the opposite effect. A rigorous collection program tends to decrease sales, shorten the average collection, reduce bad debt and increase the collection expense. A lax collection programmed has opposite effect.
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PRODUCTION CYCLE

This refers to the time on case involved in the manufacturing of goods. It covers the time span between the procurement of raw material and the completion of manufacturing process leading to the production of finished goods. During such cycle the funds are locked up in the business. The gap between raw material purchased and finished goods sale is relevant and working capital need during this time has to be met, hence production cycle are improved.

DEBTORS

CASH

SALES

RAW MATIRIALS

FINISHED GOODS

WORK IN PROCESS

Business fluctuations also lead to cyclical and seasonal changes which in turn cause a shift in the working capital position, particularly for temporary capital requirements. There may be an upswing or downswings depending on boom or depression. During upswing, the need increase and vice-versa.

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GROTH AND EXPANSION As a company grows in size we can imagine that there will naturally be an increase in capital requirements. But the amount and ratio of increase is not related. Other things being equal growth industries need more working capital then static industries. Advance planning of working capital is, there for, a continuing necessity for growing concern. PROFIT LEVEL The level of profit earned differs from industries. Manufacturing industries earn lesser profit if you consider the scale of operations and service industry is in a positions to earn to earn mote profits as the manufacturing cost are Sesser in their case. LEVEL OF TAXES The first appropriation out of profit is payable for taxes. This is determined by the prevailing tax regulations. Taxes are to be paid advance depending on the level of profit estimated increase tax liabilities leads to an increase in the working capital needs. Tax planning is needs to reduce the tax liabilities leads to an increase in the working capital needs. Tax planning is needs to reduce the tax systematically and legally. DIVIDEND POLICY The payment of dividend consumes cash resources and affects working capital to the extent. If the firm does not pays dividend and retains profits the working capital will increase. In theory a firm must retain profits to preserve cash resources and it must pay dividend to satisfy investor exceptions. DEPRECIATION POLICY Depreciation is an allowable expenditure in calculating net profits. Enhanced rates of depression will reduce the profits and tax liability and therefore lower the cash profits. If current capital expenditure falls short of desperations provision, working capital is strengthened and there is no need for term borrowing. If current capital expenditure exceeds depreciation provision either outside borrowing will have to be resorted to or a restriction on divided payment coupled with retention of profits will have to be adopted to prevent the working capital position being affected.

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PRICE LEVEL CHANGES Rising prices will necessitate use of more funds to maintain an existing level of activity. For same level of current assets higher cash outlay will be required. Effect of rising price being that higher amount of working capital will be needed. In case of companies, which can raise their price, there is no problem. OPERTING EFFICIENCY Management cannot the rise in price but they can ensure the efficient utilization of resources of the organization by eliminating wages and taking out the full utilization resources. Efficient planning and coordination leads to appropriate working capital strategy.

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WORKING CAPITAL FINANCING

The investment in raw materials, stock-in-progress, finished goods, and receivables often varies a great deal during the course of the year. Hence, the financial manager generally spends a good chunk of his time in finding money to finance current assets. Typically, current assets are supported by a combination of long-term and short-term source of finance. Long term course of finance, primarily support fixed assets and secondarily provide the margin money for working capital. Short-term sources of finance, more or less exclusively support the current assets are: TRADE CREDIT CASH CREDIT/ OVERDRAFTS LOANS PURCHASE / DISCOUNT OF BILLS LETTER OF CREDIT RIGHTS DEBENTURES COMMERCIAL PAPER Trade credit represents the credit extended by the suppliers of goods and services. It is a spontaneous of finance in the sense that it arises in the normal transactions of the firm without specific negotiations, provided the firm is considered creditworthy by its suppliers. It is an important source of financing representing 25 to 50 percent of short-term financing. Working capital advance by commercial banks represent the most important source for financing current assets. Commercial banks provides working capital advance in four primary ways; i. CASH CREDIT / OVERDRAFTS: Under cash credit or overdraft arrangement a pre determined limit for borrowing is specifies by bank. The borrower can draw as often as required provided the outstanding do not exceed the cash credit / overdraft limit. The borrower also enjoys the facility of repaying the amount, partially or fully, as and when he desires. Interest is changed only on the running balance, not on the limit sanctioned. A minimum charge may be payable, irrespective of the level of borrowing, for availing this facility. This form of advance is highly attractive from the borrower point of view because while the borrower has the freedom of drawing the amount in installments as and when required, interest is payable only on the amount actually outstanding.

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ii.

LOANS:

These are advances of fixed amount which are credited to the current account of the borrower of released to him in cash. Interest is charged on entire loan amount, irrespective of how much he draws. iii. PURCHASE/DISCOUNT OF BILLS:

A bill arises out of a trade transaction. The seller of goods draws the bill on the purchaser. The bill may be either clean or documentary (a documentary bill is supported by a document of title to goods like a railway receipt or a bill of landing) and may be payable on demand or after a period which deed not exceed 90 days. On acceptance of the bill by the purchaser, the seller offers it to the bank for discount/purchase. When the bank discount/ purchase the bill it releases the fund to the seller. The bank presents the bill to the purchaser (the acceptor of the bill) on the due date and gets its payment. iv. LETTER OF CREDIT A letter of credit is an arrangement whereby a bank helps its customer to obtain credit from its (customers) suppliers. When a bank opens a letter of credit in favor of its customer for specific purchase, the bank undertakes the responsibility to honor the obligation of its customer, should the customer fail to do so. Rights debentures for working capital, public limited companies can issue rights debentures to their shareholders with the object of augmenting the long-term resources of the company for working capital requirement. The key guidelines applicable to such debentures are as follow The amount of debentures should not exceed a) 20% of the gross current assets, loans, and advances minus the long term funds presently available for financing working capital, or b) 20% of the paid up share capital, including preference capital and free reserves, whichever is lower of the two. The debt equity ratio, including the proposed debenture issued, should not exceed 1:1 The debentures shall first be offered to the existing Indian resident shareholders of the company on a pro rata basis.

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Commercial paper represents short-term unsecured promissory notes issued by firms which enjoy a fairly high credit rating Generally, large firms with considerable financial strength are able to issue commercial paper. The important features of commercial paper are as follows. The maturity period of commercial paper ranges from 90 to 180 days. Commercial paper is sold at a discount from its face value and redeemed at its face value. Hence the implicit interest rate is a function of the size of the discount and the period of maturity. Commercial paper directly placed with investors who intend holding it till its maturity. Hence, there is no well developed secondary market for commercial paper.

Since commercial paper represents as unsecured instrument of financial Reserve Bank Of India has stipulated certain conditions meant primarily to ensure that only financially strong companies can issue commercial paper provided certain conditions.

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WORKING CAPITAL MANAGEMENT AT PDCOMPUL

Working capital management at PDCOMPUL starts at setting up the working capital required by the company in the financial year. The amount of working capital required by the company is financed by state bank of India. The company has to provide the Income statement and the balance sheet to the State bank of India of Working capital is financed by the company through cash credit which is availed from different banks at a lower rate of interest then the prevailing market rate through negotiations. (Rs. In Lac.) BANK SBI CC BOB LC AXIS HDFC CBI TOTAL SANCTION LIMIT CASH CREDIT 5500 5000 1000 1000 900 13000 10.25% 11.25% 10% % INTEREST 10%

The amount of working capital used by the company in 2007 is Rs.130 cr. Out of which Rs. 55 cr. Are available from SBI, Rs, Rs.10 cr. each from HDFC, AXIS and UCO bank, Rs. 15 cr. form CBI, Rs. 5 cr. from IDBI and Rs. 25 Cr. from IB. The amount of Working capital has increased from Rs.70 cr. in 2002 to Rs. 130 cr. in 2007. The additional finds required for the operations are raised through Short term loans which are taken for a period of 6 months. At present PDCOMPUL is having Rs. 225 cr. of short term loans out of which Rs. 170 cr. are financed from GSFC, and Rs. 55 cr. are from HDFC.

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ADDITIONAL FUNCTION

FIANANCIAL INSTITUTION GSFC GSFC GSFC GSFC HDFC HDFC TOTAL

SANCTION LIMIT CASH CREDIT 2000 5000 5000 5000 2500 3000 22500

% INTEREST 9% 9% 9% 9% -

PDCOMPUL is efficiently managing its working capital through the effective management of Inventory, cash and receivables. The payment and collection system of the company also plays an important role in the optimum working capital management of the company.

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RATIO ANALYSIS

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as the indicated quotient of two mathematical expressions and as the relationship between two or more thing The relationship between two accounting figures, expressed mathematically, is known as financial ratio. Ratio helps to summaries large quantities of financial data to make qualitative judgment about the firms performance. There are mainly four types of ratio. i. ii. iii. iv. LIQUIDITY RATIO ACTIVITY RATIO PROFITABILITY RATIO LEVERAGE RATIO

INTERPRETATION OF RATIOS OF PDCOMPUL LIQUIDITY RATIOS Liquidity refers to the ability of a firm to meet its obligations in the short run, usually one year. Liquidity ratios are generally based on the relationship between current assets (the sources for meeting short-term obligations) and current liabilities. The important liquidity ratios are, 1. CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES

CURRENT ASSET Cash in hand, cash at bank, trade debtors, bill receivable, stock, prepaid expenses, tax payable, provision for tax, dividends payable.

CURRENT LIABILITIES

Trade creditors, bill payable, bank overdraft, outstanding or accrued expenses, tax payable, provision for tax, dividends payable.

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RATIONALE OF CURRENT RATIO It indicated the ability or short-term solvency. It indicates the rupee available for paying of current liabilities. The current ratio represents a margin of safety for creditors. The higher the current ratio, the greater the margin of safety of a firm. And the larger the amount of current assets in relation to current liabilities, the more firms ability to meet its obligations. It indicates the availabilities, the more firms ability to meet its obligations. It indicates the availability of current assets in rupees for every one rupee of current liability.

Year Current Asset (in lace) Current liabilities Current Ratio (in point)

2007-08 1142803544 919067440 1.24

2008-09 1134165080 872188989 1.3

2009-10 2502226661 2521284067 0.99

1.4 1.2 1 0.8 0.6 0.4 0.2 0 2007-08 2008-09 2009-2010

cr Column1 Column2

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Generally ideal current ratio is 2:1. Bankers in India used a norm of 1.33:1. The current Ratio of PDCOMPUL is slide less than ideal ratio however it shows the sound liquidity position- of the company. The current ratio however it shows the sound liquidity position-of the company. The current ratio has come down from 1.24:1 in 2007-08 to 1.30:1 in 2008-09 and 0.99:1 in 2009-10 main reason for this is to increase current liabilities more than increase in current assets

QUICK RATIO = CASH AND BANK BALANCE + SUNDRY DEBTORS / CURRENT LIABILITES
A general norm of Quick Ratio is 1:1 if Quick ratio is greater than 1 is good sign for the company and shows satisfactory financial condition and ability to make payment for short term dues. Quick ratio of PDCOMPUL always been much higher than 1 which shows better liquidity position of the company. The quick ratio of PDCOMPUL has increase from 0.66 to 0.90 in 2006-07 to in 2008-09 and decrease in 2009-10 from 0.90 to 0.72 Year Cash & Bank +SD (in RS) Current liabilities Quick Ratio (in point)
1 0.9 0.8 0.7 0.6 Series 1 0.5 0.4 0.3 0.2 0.1 0 2007-08 2008-09 2009-10

2007-08 60,85,41,963 91,90,67,440 0.66

2008-09 78,16,85,176 87,21,88,989 0.90

2009-10 1,83,47,20,879 2,52,12,84,067 0.72

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However it should be remember that all debtors may not be liquid and cash may be needed to pay operating expenses. To a measurable extent, inventories are able to meet current obligations. Thus company with high value of quick ratio can surer from the shortage of funds if it has slow paying, doubtful and long duration outstanding debtors. On the other hand, a company with a low value of quick may really be prospering and paying its current obligation in time as it has been turning over its inventories efficiently.

CASH RATIO = CASH AND BANK + CURRENT INVESTMENT / CURRENT LIABILITIES

This shows that company maintains its cash position. This is very stringent measure of liquidity. Indeed lack of immediate cash may not matter if the firm can stretch its payments or borrow money at short notice. year Cash & bank Current liabilities Cash ratio 2007-08 52,99,65,100 91,90,67,440 0.58 2008-09 65,56,10,721 87,21,88,989 0.75 2009-10 1,83,47,20,879 2,52,12,84,067 0.72

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2007-08 2008-09 2009-10 quick ratio (in point)

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CASH MANAGEMENT AT PDCOMPUL Cash is managed at PDCOMPUL in a very simple way. It is a monthly statement of Receipt and payments in which all the receipt and the payments are included. This statement is divided into 3 parts. Revenue Receipts Revenue payments Financial payments

The first part of the statement is revenue receipts in which the collection of sales is included and is taken from the marketing department. The various payments for material energy, sales tax, marketing commission etc are in the revenue payment category and these figures are taken from the respective departments. All the financial payments are included in the third party of the statement and the payments of interest and capital expenditure in this part.

ACTIVITY RATIOS
Turnover ratios, also referred as activity ratios or assets management ratios, measure how efficiently the assets are employed by firm. The important turnover ratios are, INVENTORY TURNOVER TATIO = SALES / AVERAGE INVENTORY Year Sales (in Lac.) Average inventory Inventory turnover ratio 2007-08 2,52,40,89,521 1,21,56,78,907 2.08 2008-09 3,65,57,76,243 3,21,67,24,785 1.14 2009-10 4,37,70,51,395 29,24,79,558 0.15

Chart Title
2.5 2 1.5 1 2 0.5 0 2007-08 2008-09 2009-10 Series 1

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INVENTORY MANAGEMENT AT PDCOMPUL

Many of the items company need for day-to-day. Maintenance and operations. The time for procure these materials may be longer due to various reasons and it is not possible to procure these materials when instantaneously required. It is, therefore, necessary to keep stocks of such items. Even for those items which are readily available in the market, it may not be economically to buy these items every time as buying in piecemeal involve additional cost to the administration. Therefore it is cheaper to buy in bulk and to stock some of these items and supply indenters through such stocks.

On the one hand inventory is very valuable resource for uninterrupted production. And on the other hand excess of inventory holding locked up capital. So optimize production so optimize level of stock must be necessary. PDCOMPUL is having continuous production so optimum inventory has to be maintained so that production does not affects due to shortage of raw material. PDCOMPUL is using ABC (Always Better Control) analysis technique for the purpose of inventory management. PDCOMPUL is having more than one supplier for its raw material as the quantity required by PDCOMPUL is large which cannot be supplied by one supplier. The procurement of raw material is done through yearly rate contracts which are finalized in the beginning of the financial year. The various methods like Minimum reorder period, stock level of inventory and the quantity to be order is decided by the top management annually by framing a annual budget and on the basis of that budget the rate contacts are issued.

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PDCOMPUL FOLOWS ABC ANALYSIS FOR THE INVENTORY MANAGEMENT

ABC (Always Better Control) analysis is used for the management of inventory at PDCOMPUL. ABC technique is one of the widely used techniques of inventory management in the organization. The raw material are classified as A,B and C on the basis of the cost of the raw materials. E TENDERING The annual rate contracts are finalized electronically so as to cut the cost and save the time. GNFC is the service provider for E Tendering and is done through a GNFCs (n) code solution. The suppliers who bid for the tender can directly send their quotation through internet and receiving the quotation from the suppliers the lowest bidder is issued the contract but since the quantity required by PDCOMPUL is larger so the bidder are also asked to match their price with the lowest bidder and then quantity is distributed among different suppliers. The contract is finalize by a committee in which chief general manager (purchase). Chief financial officer and the executive director (electrical) is member. SETTING OF THE INVENTORY LEVEL The various inventory levels like minimum stock level, maximum stock level, and reorder level are set through the annualized budget by the top management. ORDERING OF RAW MATERIAL The raw material are ordered on receiving an Indent in which the quantity to be ordered is mentioned. The purchase department then place the order on the basis of indent received and then the order proposal is approved by the committee and then finally the order is placed.

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COMMITTEE FOR APPROVING THE ORDER PROPOSAL

There are different purchase committees for granting purchase approval which are as under. PURCHASE 1 TO 5 LACKS: This committee consider of chief financial officer, deputy general (finance), executive director (technical) and chief general manager purchase. PURCHASE OF OVER 5 LACKS: All the purchases above 5 lacks are made by a committee consisting of Managing Director, Chief financial officer, thief general manger (purchase), executive director (marketing). PURCHASE COMMITTEE FOR SALT: PDCOMPUL is having a separate committee for salt as this the most important raw material and is known as black gold in the company. The committee consists of Managing Director, Chief Financial Officer, Executive Director (technical), Executive Director (marketing)

70

RECEIVING MANAGEMENT AT PDCOMPUL

When firm sales goods for cash, payments are received immediately and there for now receivables are created, however, when a firm sells goods, or service on credit, payments are received only at a future date and receivable are created. It is an essential marketing tool in modern business trade. Credit creates receivables which the firm is expected to collect in near time. The term receivables is referred as to as debt owed to the firm customers arising from sale of goods or services in the ordinary course of business.

Accounts receivables constitutes significant portion of the total current assets of the business after inventories. There should be effective management of receivables to increase the firms profitability. For this purpose different credit and collection policy formulated and implemented, under different aspects such as credit period, credit amount, cash discounts, etc. are taken in to great care.

While business firms would like to sell in cash basis, they are not always able to do so. They to resort to credit sales as it help increase the customer base. It is convenient for some customers who find it difficult to borrow from other sources to pay for the purchase. Credit period ranges from 15-60 days. When goods are sold on credit, finished goods get converted into accounts receivable in the books sold on credit, finished goods get converted into accounts receivable in the books of the seller. The firms investment in account receivable depends on how much it sells on credit and much time it take to recover receivables.

Almost all the sales in PDCOMPUL are credit sales and receivables management becomes one of the most important factors affecting cash profit. Receivables or debtor taken care by marketing department as sales are done by marketing department.

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COLLECTION METHODS AT PDCOMPUL

The company has divide into on the basis of geographical segments. The company has appointed has appointed its employees in each segment and their job is to remind the customer from time to time for the payment of receivables. The company also send periodic invoice to the customers for prompt payments. Company also has agents to the customers for prompt payments. Company has also commission agents in some segments.

The job of all employees and commission agents mentioned above is to remind the customers about their payments which are due but the final payment are made directly by customers through or draft

CREDIT POLICY AT PDCOMPUL

The credit at PDCOMPUL is framed by the marketing department. PDCOMPUL gives a credit period of 60 days to its customers. The credit period is revised on quarterly in a dealers meeting which takes place every quarter. The customers are evaluated on the following basis for allowing the credit: Financial Background Past Years Turnover Purchase Quantity Market Standing or Goodwill.

In order to have fast realization of receivable PDCOMPUL also gives a Discount @1.5% for early payment made by the customers. PDCOMPUL is also implementing advance payments for the 2 of its products which are: Caustic Soda Flakes Caustic Soda Pills

This will help in improving liquidity position of the company. PDCOMPUL is also making efforts for the collection of receivables directly through banks i.e. electronic transfer payment which is the fast means of sales realization.

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ASSETS TURNOVER RATIO = SALES / TOTAL ASSETS Year sales Total assets Assets turnover ratio 2007-08 120,337.72 1,88,772.91 0.64 2008-09 143,007.38 2,23,830.08 0.64 2009-10 4,37,70,51,395 3,38,94,03,414 1.29

1.4 1.2 1 0.8 0.6 0.4 0.2 0 2007-08 2008-09 2009-10

assets turnover ratio

Assets turnover ratios are basically productivity ratios which measure the output produced from the given inputs deployed. Assets are utilizes to generate sales. Therefore a firm should manage its assets efficiently to maximize sales. A firms ability to produce a large volume of sales for a given amount of net assets is the important aspect of its operating performance. In the year 2009-10 the ratio has gone up which shows better utilization of assets than previous year. NOTE: Sales include sales (Excluding excise duty) + other income. Total assets include net fixed assets + investment + net current assets.

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NET ASSETS TURNOVER RATIO = SALES / NET FIXED ASSETS Year Sales Net Fixed Assets Net Fixed Assets Turnover Ratio 2007-08 132,238.59 126,380.21 1.05 2008-09 156,412.58 148,702.04 1.05 2009-10 4,37,70,51,395 88,71,76,753 0.5

1.2

0.8 net fixed assets turnover ratio 0.6

0.4

0.2

0 2007-08 2008-09 2009-10

Net fixed assets turnover ratio of PDCOMPUL shows it uses its fixed assets in an efficient manner. This ratio measure sale per rupee of investment in fixed assets. NOTE: sales include excise duty recovered.

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OBJECTIVE OF THE STUDY

The main objective of undertaking industrial training in this Dairy in the field of working capital management is to get the idea about the financial performance of Dairy. To get idea about current assets & current liability of the Dairy. To know the liquidity position of the Dairy. To Study Rate of return on investment for PDCOMPUL. To get idea about the cash flow of the Dairy, about their receivable and payable management. To get idea about how to manage the cash flow within the firm, and also get idea managing cash flow into and out of the firm, and financing deficit or investing surplus cash and thus, controlling cash balance at a point of time. To get idea about their inventory turnover towards their customer, to meet their customer daily needs.

75

DATA COLLECTION METHOD

Secondary data when data are collected and compelled from the published nature or any others primary data is called secondary data. So far as our research is concerned, I have collected secondary data from websites and magazines.

RESEARCH METHODOLLOGY A research design is defined, as the specification of methods and procedures for acquiring the Information needed. It is a plant or organizing framework for doing the study and collecting the data. Designing a research plan requires decisions all the data sources, research approaches, research instruments, sampling plan and contact methods. But I have basically used DESCRIPTIVE RESEARCH DESIGN Types of sources of data used are:Secondary Data Past reports Data through internet source Annual reports of the PDCOMPUL

76

FINDINGS

Current ratio of the company is 1.24,1.3 and 0.99 in the year 2007-08, 2008-09, 2009-10 respectivly. The standard of current ratio is 2:1, and which indicates company ratio is lower then the satisfaction ratio so company must try to increase there ratio.As here the ratio of the company is going lower by 2010,its means that it cant pay its short term obligations. So for that company need to increase its current ratio.

The ideal quick ratio is 1:1.Here in PDCOMPUL quick ratio is 0.66,0.90 and 0.72 in the year 2007-08, 2008-09, 2009-10 respectively which is nearest to the satisfactory ratio. But to pay its short term obligations with its most liquid assets its worst . Because it cant meet its short term obligation. On this current ratio.

Stock turnover ratio is 2.08,1.14 and 0.15 in the year 2007-08, 2008-09, 2009-10 respectivly. As here the stock turnover ratio .as here the inventory turnover is best its meet its customer need on the daily basis. As compare to the previous year its better in 2010. In 2007-08 its was 2.08 at that time PDCOMPUL need to meet its customer demand in 2 days. But in 2010 its better that its meet its customer demand in 3.5 hrs approximately.

Net asset turnover ratio also decreases in the compare of previous year. Its worst that its net asset turnover ratio is getting low in 2010. Its 0.5 in 2010 its been not effective to using its investment in fixed assets to generate revenues. As compare to the last year its was 1.05 better using its investment in fixed assets to generate revenues. In the comparison of previous year the PDCOMPUL should not maintain inventory day. But it should watch that stock turnover on the weekly basis.

77

LIMITATION
The topic working capital management is itself a very vast topic yet very important also. Due to time restraints it was not possible to study in depth in get knowledge what practices are followed at PDCOMPUL. Nevertheless, many facts and data are such that they are not to be disclosed because of the confidential nature of the same. Hence because of that I cannot express any options upon various issues which it limits the scope of my study. However I have tried to give an understanding of working capital management in as much as detail as possible

78

CONCLUSION

The company should try to improve its current situation. The ratios,which are taken in this research to evaluate the companys position. As here the current ratio is worst, it need to improve its situation by increasing its current ratio to higher level above 1. As below 1 its shows that company is not financially good. As quick ratio of the company is also not good, it doesnt meet its satisfactory condition as company ratio is 0.72 its not good it cant pay its short term obligation. To meet these they need to increase the quick ratio . In short span, we got to learn a lot. We now have a better understanding of how exactly the corporate culture works and how the organization culture should be defined. The training was an enlightening experience to understand, observe, associate and finally establish a link between the theoretical and practical concepts in management.

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RECOMMENDATION
INVENTORY

Inventory should be reviewed constantly to identify show / dead / obsolete item and then disposed until 2000-01 level is again achieved.

Optimum level should be revised periodically, keeping in view, distance of suppliers, production lead time of supplier, transport problem if any and reliability of suppliers. This will help to avoid obsolesce and dead inventory.

RATIOS

The company should try to improve its current situation. The ratios, which are taken in this research to evaluate the companys position, are current ratio, quick ratio and activity ratio. These ratios show the actual position of the company. There is a drastic (extreme) declining in the working capital turnover ratio. This ratio goes to ve position in current year compared to previous. The current ratio is 0.99 in 2009-10, which is not up to the ratio. This shows that the current assets are equal to the current are equal to the current liabilities. Not satisfactory.

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BIBLIOGRAPHY

REFERRED SITES

1. www.google.com

2. www.panchamrutdairy.org

REFERENCE BOOKS

1. I. M. Pandey Publisher - Vikas Publication Edition and Year of Publication - 9th Edition.

OTHER MATERIAL USED

1. Annual Reports of panchmahal dairy.

81

THE PANCHMAHAL DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD., Regd. Office: P.O. LUNAVADA ROAD, GODHRA - 389001 TREDING & PROFIT LOSS ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH, 2009-10 2007-2008 RS. 12,88,90,083 2,20,75,74,025 1,12,57,956 3,41,56,544 15,63,87,987 9,20,10,339 7,48,26,987 2,00,38,548 1,42,16,846 2,84,96,789 23,64,579 13,15,724 3,00,024 42,23,621 32,32,832 4,94,08,678 4,37,49,364 To Opening stock To Purchase To animal Breeding & Co-op. development expenses To Processing expenses To Packing e expenses To Electricity & Fuel expenses To Salaries & Wages expenses To Staff P.F. Gratuity & others amenities To Repairs 7 Maintenance expenses To Marketing expenses To Postage, Telephone, Printing & stationary expenses To Insurance Premium expenses To Rent Rate & Taxes To audit fees expenses To miscellaneous expenses To Interest bank commission expenses To depreciation To Bad Dept. Provision 60,00,000 69,64,876 2,88,53,95,712 To Income tax Provision To Net Profit TOTAL PARTICULAR 2008-2009 RS 31,66,98,054 2,92,44,05,154 1,30,46,554 3,74,89,761 17,44,99,056 9,65,39,622 9,81,78,170 2,05,47,617 2,18,28,460 4,25,04,479 28,18,387 11,62,156 4,20,090 42,80,230 29,46,850 6,35,28,386 5,79,22,796 5,00,000 70,00,000 89,98,937 3,89,53,14,759

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2007-2008 RS. 2,52,40,89,521 4,46,08,137 31,66,98,054 2,88,53,95,712 By Sales By Sundry Income By Closing Stock Total

PARTICULAR

2008-2009 RS 3,65,57,76,243 5,41,90,888 18,53,47,628 3,89,53,14,759

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RESERVE FUND & THE FUNDS-SCHEDULE: 1 (BALANCE SHEET)

NAME OF FUND Reserve fund Co-op. propaganda fund Dairy Research Fund Dividend Equalization Fund Capital subsidy fund D.P.A.P. Capital subsidy fund N.D.D.B.- O.F. Capital subsidy fund (Land) Capital subsidy fund Tribal Charity Fund Bonus to Society Fund T.A.S.P. Grant D.R.D.A. Grant Limdi Tribal Sub Plan Grant Investment Revaluation Fund (Bonus Share) L.N. container grant D.R.D.A. Solar Subsidy Tribal Sub Plan Grant- Women Training Center Limdi D.R.D.A. Grant Cattel feed Project Food processing Grant Centre government Bulk cooler Grant Capital Subsidy Fund (Milk scan) Capital Subsidy Fund (Can) Capital Subsidy Fund (by pass potit plant) Capital Subsidy Fund (vegetable dehydration) TOTAL

AS ON 1-4-08 15703531 91235 57741 8234298 30674498 531000 47214 71118 954422 4589625 15700000 4911775 3950000 735220 240000 1670850 307020000

ADDITION 1741319 11178 6707 4471

DIDUCTION

AS ON 31-3-09 17444850 102413 64448 8238769 30674498 531000 47214 71118 976777 4768468 15700000 4911775 3950000 735220 240000 1670850 307020000

22355 178843

7679000 3750000 10400000 3595000 215000 15670000 16050000 118928368 61223873

7679000 3750000 10400000 3595000 215000 15670000 16050000 180152241

84

ASSETS SCHEDULE 2 (BALANCE SHEET)

LAND

BUILDIN G

PLANT MACHINER Y

CANCREATES

VEHICL ES

DEAD STOCK

P&P EXP.

TOTAL

GROSS VALUE 1-408 ADDITION DURING THE YEAR DEDUCTION DURING THE YEAR GROSS VALUE TOTAL DEPRECIATI ON DEPRICIATI ON DURING THE YEAR DEDUCTION DURING THE YEAR TOTAL DEPRECIATI ON NET BLOCK

9208412

208241935

418883562

36285817

7402059

40498498

1534004

723781 451 131217 635 607668 2 848922 404 353856 082 579227 96 445177 2 407327 106 441595 298

34109174

82421298

9893436

1182840

3610887

3720909 9208412 242351109 497583951

2025214 44154039

330559 8254340 44109385 1227214

85754347

213897560

24000924

3100788

25184383

1227214

13251274

36378118

4273026

598974

2769182

306790

3339653

781560

330559

99005621 9208412 143345488

246936025 250647926

277492390 16661649

3369203 4885137

27953565 16155820

1534004

85