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A SUMMAR TRAINING REPORT ON

COMPANY OVERVIEW &

FINANCIAL ANALYSIS OF SUMUL DAIRY


AT

IN PARTIAL FULFILLMENT OF THE REQUIREMENT IN THE MBA DEGREE OF VNSGU, SURAT.

Submitted By:
SHAH SUCHI H. Roll No. 36 Division B.

Guided By::
Internal Guide: Mrs. Anitha Thomas External Guide: Mr. Manish Bhatt

G.I.D.C. RAJJU SHROFF ROFEL INSTITUTE OF MANAGEMENT STUDIES, VAPI

DECLARATION
I, Ms. Suchi H. Shah, student of GIDC RAJJU SHROFF ROFEL INSTITUTE OF MANAGEMENT STUDEIS, VAPI, affiliated to Veer Narmad South Gujarat University, Surat hereby declare that this project report is a result of culmination of my sincere efforts. I declare that this submitted work was solely done by me and to the best of my knowledge; no such work has been submitted by any other person for the award of the post graduation degree or diploma.

I also declare that all the information collected from the various secondary sources has been duly acknowledged in this project report.

Sign: Suchi Shah Place: Vapi

ACKNOWLEDGEMENT
A Project Report is incomplete without the guidance from appropriate person. So, now it is the right time to express my sincere gratitude towards all those, who have helped me to complete the project. I would like to thank our Director Dr.R.S.Shah who has given me the opportunity. I am very much grateful to External Guide Mr. Manish Bhatt and also the Internal Guide Prof Anitha Thomas, whose guidance and support helped me to complete this project successfully. Without their Guidance the work would never been completed. And I am greatly to all advisers who helped me knowingly or unknowingly for getting the information and taking interest in this report. I am also thankful to entire faculty and staff of GRIMS, Vapi without which this project would be not a successful.

Place: VAPI Date:

Thanking You Shah Suchi H.

Index
No Contents Declaration Certificate-1 Acknowledgement

Industry Profile & Introduction to SUMUL

1.1 History.. 1.2 Industry Profile.. 1.3 Introduction to Sumul 1.4 Vision, Mission, Objective. 1.5 Work area of Sumul. 1.6 Unit of Sumul and Their Capacity.. 1.7 Turnover of Sumul.. 1.8 Awards & Honors.

2 Company Profile
2.1 Production Dept 2.2 Marketing Dept.. 2.3 HR Department. 2.4 Finance Dept 2.5 purchase and store department.

3 Research
3.1 Theory of financial analysis 3.2 Ratio analysis of Sumul 3.3 Ratio analysis of Amul 3.4 comparisons of Sumul and Amul 3.5 working capital management 3.6 Cash Management

4. Findings & Suggestion

5. Bibliography 6. Annexure

History
In the year 1939 Sardar Vallabhbhai Patel went and meet the farmers of Anand and told them that for the trade of milk the dairy was necessary. At that time a person named Tribhuvandas Patel came forward to take the leadership. During that time there was only one dairy POLSON DAIRY which belongs to Britishs and they use to give very less price for milk to the India Milkmen. In order to support the Indian farmers AMUL DAIRY was established in the year 1946 DDR. Kurien was appointed at this dairy. Dr. Kurien along with Tribhuvandas Patel took the leadership. Indian becomes independent in the year 1947. in the meantime AMUL Dairy got order from the WHO to produce milk Powder from buffalo milk. Dr. Kurien & Mr. Dalaya found the technique of producing milk from buffalo milk. After booking at this Lal Bahadur Shashtri took the visit of Ajampur village and promised them to provide with more money fro the systematic development of the dairy industry. For the proper development of the dairy industry NDDB was established at Anand. NDDB started operation 1 programmer for all dairies in 1971-72 in the year 1977 operation Flood-2 started. Transportation machinery & pressmen of milk at low cost and give importance. In the year 1990operation flood-3 started. Here the farmers were, made aware about their right & responsibilities high productivity of milk at low cost & so the co-operatic of development programs started. In the year 1998-99 two million tone of milk was produced in Indian & Indian becomes the worlds first milk producing country. Which is more then 68 million of American. So it was called white revolution

Dairy Industries in India


The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. The dairy sector has developed through co-operatives in many parts of the State. With the increase in milk production. Maharashtra now regularly exports milk to neighbouring states. It has also initiated a free school feeding scheme, benefiting more than three million school children from over 19,000 schools all over the State. More than 2,445 million people economically active in agriculture in the world, probably 2/3 or even more of them are wholly or partly dependent on livestock farming. India is endowed with rich flora & Fauna & continues to be vital avenue for employment and income generation, especially in rural areas. India, which has 66% of economically active population, engaged in agriculture, derives 31% of Gross Domestic Product GDP from agriculture. The share of livestock product is estimated at 21% of total agricultural sector. More than 2,445 million people economically active in agriculture in the world, probably 2/3 or even more of them are wholly or partly dependent on livestock farming. India is endowed with rich flora & Fauna & continues to be vital avenue for employment and income generation, especially in rural areas. India, which has 66% of economically active population, engaged in agriculture, derives 31% of Gross Domestic Product GDP from agriculture. The share of livestock product is estimated at 21% of total agricultural sector.

NDDB
The National Dairy Development Board was created to promote, finance and support producer-owned and controlled organizations. NDDB's programmes and activities seek to strengthen farmer cooperatives and support national policies that are favorable to the growth of such institutions. cooperative principles and cooperative strategies. The National Dairy Development Board (NDDB) was founded in 1965 to replace exploitation with empowerment, tradition with modernity, stagnation with growth, transforming dairying into an instrument for the development of India's rural people. NDDB began its operations with the mission of making dairying a vehicle to a better future for millions of grassroots milk producers. The mission achieved thrust and direction with the launching of "Operation Flood", a programme extending over 26 years and which used World Bank loan to finance India's emergence as the world's largest milk producing nation. Operation Flood's third phase was completed in 1996 and has to its credit a number of significant achievements. As on March 2006, India's 1, 17,575 village dairy cooperatives federated into 170 milk unions and 15 federations procured on an average 21.5 million liters of milk every day. 12.4 million farmers are presently members of village dairy cooperatives. Since its inception, the Dairy Board has planned and spearheaded India's dairy programmes by placing dairy development in the hands of milk producers and the professionals they employ to manage their cooperatives. In addition, NDDB also promotes other commodity-based cooperatives, allied industries and veterinary biological on an intensive and nation-wide basis. Fundamental to NDDB's efforts are

The Dairy Board's strength lies in leveraging the capabilities of milk marketing federations and milk producers' cooperative unions to bring high quality services and modern technology to the service of rural India. Our more than 40 years' experience helping to create a national network of dairy cooperative institutions has been adapted and extended to other commodities and areas. Our constant effort to learn and to enrich our experience is central to our approach and our capacities.

Dairy co-operatives
Three broad questions have intrigued researchers and practitioners on cooperatives: what are the objectives of cooperatives, what determines the success and failure of cooperatives and how do cooperatives act as organizations of social and economic change. While most of the observations are based on normative judgments of what the cooperatives are supposed to do, some studies reflect the true behavior of agents within a cooperative framework thereby making the debate on cooperatives more complex but also interesting. To these themes we add another question that reflects in some ways our own enquiry through this paper: are mechanisms of cooperation that cooperatives employ any different from those used by other industrial organizations? Traditionally, cooperatives have been established to serve the needs of its members in order to maximize their returns. Governments have usually seen these organizations as effective mechanisms for delivering their own programmes (e.g., sector development or poverty reduction, etc.). Researchers have looked at cooperatives as channels for re-distributing wealth, improving the opportunities for the weaker sections of the society, alternative institutions for property ownership, efforts in democratic and participative governance of organizations1 etc. In that, the cooperatives have often sought
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protection of sorts from uncertainties in the market place. Globally, modern day cooperatives are agglomeration of many such small groupings that serve some of the above objectives but have now moved from being protected entities to becoming market driven. This makes such cooperatives an interesting organizational alternative to traditional business enterprises (i.e., investor owned firms) in terms of concern for shareholders, distributional effectiveness and ability to provide product/service variety. In emerging economies, cooperatives have been used as institutions to organize marginal producers thereby providing scale effects to a network of such producers. Sometimes, it is the government that organizes these marginal producers and may also manage the collective. On other occasions, producers themselves come together to produce and distribute their own products (as in the case of AMUL). While control and subsidies from the government distort the performance of former, producer-driven cooperatives have to develop systems and processes that respond to market requirements and be competitive. In that, the determinants of success for this kind of cooperatives are no different from those of other commercial organizations. Moreover, they recognize that in order to optimize the objective function of the marginal producers, they have to serve the market very effectively. Cooperatives are, however, different from other commercial organizations in one respect they are bound to serve the suppliers (i.e., the producers of goods & services who happen to be the members of the cooperatives) in good and bad times. In that, they present an interesting model to other commercial organizations on strategic management of resources and their conservation. Globally, cooperatives have played the role of preventing market failures for small producers especially in the dairy industry. Traditionally, a large number of these cooperatives have had small membership and produced predominantly raw products (i.e., fluid milk) or products with some value addition (i.e., dry powder, butter etc.). This situation has been changing dramatically in the last decade and especially in the last decades. There has been a spate of mergers all around the world to create fewer but larger dairy cooperatives. In many cases, these cooperatives look very different from the merged entities. Cooperative dairies that operate with small membership have retained a

certain focus (i.e., geographical or product related) in their offerings. There have been several factors driving the restructuring of the dairy business (which has chiefly been organized around cooperative principles). These include efficiencies in managing fewer large plants versus a number of under-utilized small plants, need for more milk supply (and declining membership), need to offer wide variety, improvements in trucking & milk handling thereby facilitating long hauls, opening of new international markets (also markets for new products), seeking marketing clout and need to bring investment from outside the cooperatives. The AMUL experience has attracted considerable interest from the development community predominantly anthropologists, development & agriculture economists, and political scientists. Key areas of their enquiry have been the role of AMUL in reducing social and economic inequality in the region of the cooperative, the sociology of cooperation, interface of the dairy cooperative and the rural power structure, relation of the State and the Cooperative and the role of government in its growth (interestingly, AMUL has successfully managed to exercise its independence from the government unlike other cooperatives in India), elements & replicability of the cooperative movement at Anand, cost effectiveness of subsidies to AMUL (in its initial years) etc. A few studies have evaluated the operational effectiveness of the operations at AMUL. Studies have reported usage of mobile veterinary dispensaries, wireless sets to link mobile units to service centers as early 1951, developing a programme of cross breeding of cows in early 1970s etc. that have led to a phenomenal rise in productivity of milk (Patel, 1988). We have, however, not come across any research paper or study that looks at the entire supply chain to understand the role of managerial practices in achieving its objectives successfully. There have been no studies that look at managerial practices, efficiency and performance of cooperatives either. We now present how AMUL developed a robust organization based on sound values and commercial interests.

Anand Pattern
The co-operative system formed under the so called Anand pattern has a three tiered structure. At the base the village level dairy co-operative society. This was composed of the milk producers, mostly residents of the same area, who had joined the

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co-operative society. A typical membership figure would be about 200. A managing committee, of about eight to nine members was elected, one of whom would be elected as the Chairperson. Care was taken to ensure that these meetings were held, and seen to be held, in an open and transparent manner. The next level at the district, and this cooperative (called unions) , as its members, the village dairy co-operative societies within the district, represent by the Chairpersons of the village level societies. For this cooperative, a Board of Directors, consisting of 12 persons, elected from among the members (i.e., the Chairpersons of the village level co-operatives), with its own Chief Executive, called the Managing Director. The third level is at the State, where the cooperative (GCMMF in Gujarat) formed with district level milk unions (and certain other milk unions from other states) as members. The State level organization called the Federation. The Board of Directors of the Federation consists of the Chairpersons of the district level co-operatives as the members, and in addition, the following ex officio members: Co operative society Structure

1. The Registrar of Co-operatives of the State concerned.


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2. A representative from the National Dairy Development Board (NDDB), which


was a body created by the Government of India to replicate the Anand pattern in the other States of India.

3. One nominated technical expert. 4. The


Managing Director (CEO) of the State level federation.

GCMMF is the State level federation in the State of Gujarat. In this system, GCMMF plans what products it will sell and arrange to manufacture for each year and how much milk products are produce at different factories all over the State. These are own by the district unions. There is a committee, called the Programming Committee, which consists of 1. Managing Director of GCMMF 2. Managing Directors of the District Unions 3. Their Head, Quality Control, GCMMF and 4. Head, Finance, GCMMF. This committee finally decides the product mix for the coming year, based on the plans made by GCMMF and translate the plans into monthly allocations for each union for the milk to be supply. The concept of Co-Operative societies advice from the freedom fighters like Sardar Vallabhai and Morarji Desai, the Co-Operative movement started with the slogan Remove middlemen in Gujarat by the village masses.The Co-Operative movement started with two villages and 247 litres of milk in 1946. As on April 2000, there were 10,800 village level co-operatives in Gujarat under the GCMMF umbrella with 2.1 million milk producers. Out of 25 districts in Gujarat, there were district level unions in 12 districts. It has become a rupees one billion-business now. Dairy co-operative structure are as follows:

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Dairy Cooperatives account for the major share of processed liquid milk marketed in the country. Milk is processed and marketed by 170 Milk Producers' Cooperative Unions, which federate into 15 State Cooperative Milk Marketing Federations. The Dairy Board's programmes and activities seek to strengthen the functioning of Dairy Cooperatives, as producer-owned and controlled organisations. NDDB supports the development of dairy cooperatives by providing them financial assistance and technical expertise, ensuring a better future for India's farmers. Over the years, brands created by cooperatives have become synonymous with quality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras

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(Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence. 1. Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF) 2. Bihar State Cooperative Milk Producers' Federation Ltd (COMPFED) 3. Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) 4. Haryana Dairy Development Cooperative Federation Ltd. (HDDCF) 5. Himachal Pradesh State Cooperative Milk Producers' Federation Ltd (HPSCMPF) 6. Karnataka Cooperative Milk Producers' Federation Ltd (KMF) 7. Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF) 8. Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF) 9. Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh) 10. Orissa State Cooperative Milk Producers' Federation Ltd (OMFED) 11. Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) 12. Punjab State Cooperative Milk Producers' Federation Ltd (MILKFED) 13. Rajasthan Cooperative Dairy Federation Ltd (RCDF) 14. Tamilnadu Cooperative Milk Producers' Federation Ltd (TCMPF) 15. West Bengal Cooperative Milk Producers' Federation Ltd. (WBCMPF)

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Introduction of Sumul Dairy

The Sumul district co-operative milk producers union ltd (SUMUL Dairy) is a co-operative endeavor committed to help marginal farmers and down trodden tribal to lead to a healthy life and better standard of living through scientific animal husbandry practices. Todays Sumul enjoys the pride to serve milk and milk products to populous Surat city and surrounding towns of it. Sumul is holding strong brand equity in Surat district and command more than 70% of the liquid milk in Surat city, to make the distribute system fast and the delivered milk in time they have as many as 6ilk transportation routes and 1531 agents (1386 regular and 145 full time) The area of operation of Sumul is the entire district of Sumul. The present milk procurement of 160.929,736 liters of milk annually makes it the third largest union in the state after the AMUL and Mahesana dairy. The present market of Surat for liquid milk is around 4.5 lack liters per day. This has necessary active development of by product market. Products so far introduced are paneer, ghee, flavored milk, sweet, shrikhand, lassi, butter milk etc.. Sumul consist of 13 board of directors one each of 13 talukas of Surat district and they from themselves elect the chairman. The total numbers of employees are about 1100 besides the contract workers. Under sumuls activities, Surat district is now firmly established as a milk shed and is growing from strength to strength. Hence, the Surat district co-operative milk producers union ltd, SUMUL is trade name and literally meaning sound process, came in to existence on August 22, 1951 The formal commissioning of the pasteurization plant on March 17, 1968 was a turning point fro Sumul.

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SUMUL has three chilling center at Bajipura, Navi Pardi and Uchchal for ensuring safe delivery of raw milk to SUMUL where the milk is processed and pack into various type of liquid milk and by product to improved the nutritional feed given to the cattle at village level, the co-operative has establishment a cattle feed factory at chalthan. Sumul also has oil refined oil at the village of DCS level.

Board of Directors
No. Name / Address Residence phone

1.

Shri Manubhai Amthabhai Patel Chairman Representative, Nihali Dudh Utpadak S.M. Ltd, At.:Nihali, Po.:Dholikui, Tal.: Mahuva.394250 Shri Sudambhai Raghunathbhai Patel Vice Chairman Representative, Velda Vibhag Dudh Utpadak S.M. Ltd. At. Velda Tal. Nizar 394370 Shri Chunilal Durlabhbhai Patel Representative, Lotarwa DudhUtpadak S. M. JIN Ltd, At. & Po.: Lotarwa, Tal.: Vyara.394 650 Shri Arvindbhai Singabhai Gamit Representative, Pipalkuwa Dudh Utpadak S.M.Ltd,Pipalkuwa,Po.:Pipalkuwa, Tal.: Songadh.394660 Shri Jayeshbhai Natvarbhai Patel Representative, Delad Dudh Utpadak S.M. Ltd, At. Delad Po.: Sayan, Tal.: Olpad.394540 Shri Jitendra Dhirajlal Desai Representative, Uchchal Dudh Utpadak S.M. Ltd, At & Po.: Uchchal ,Tal.: Uchchhal.394375

(02625-2531293) MO.98241-10316

2.

( 02628 )244238 / 244228

3.

(02626) 222446 / 220017

4.

(02624-251088)

5.

(02621-242362)

6.

(02628) 231106/231123

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7.

Shri Ratilal Somabhai Master Representative, Surat Dudh Utpadak M. Ltd, 40-A, Patelnagar, A.K. Rd, Surat Tal.:Choryasi.395008 Shri Manojbhai Naranbhai Patel Representative, Shekhpur Dudh Utpadak S.M. Ltd, At Shekhpur Po.: Sayan, Tal.:Kamrej.394180 Shri Shivabhai Babubhai Patel Representative, Naugama Dudh Utpadak S.M. Ltd, At Naugama(Nani) Po.: Simodra,Tal.: Mangrol.394410

(0261-2543404)

8.

(02621-242526)

9.

(02623-233288)

10.

Shri Ramanbhai Ukadiyabhai Gamit Representative, Zankhala Dudh Utpadak S.M. Ltd, At & Po. Zankhala Tal.: Mandvi.394160

(02623-221396)

11.

Shri Bhupendrabhai Ratilal Desai Representative, Valod Dudh Utpadak S.M. Ltd, At & Po. Tal.: Valod.394640 Shri Shantilal Kalyanjibhai Patel Representative, Bagumra Dudh Utpadak S.M. Ltd, At & Po. Bagumra. Tal. Palsana.394315

(02625-220151)

12.

(02622263308/263309)

13.

Shri Arvindbhai Bhagvanjibhai Patel Representative, Rampura Dudh & Shakbhaji U.S.M. Ltd. At.Rampura. Po.Varad. Tal:Bardoli.394602 Shri Parsottambhai Mundiyabhai Padvi Representative, Umarda Dudh Utpadak S.M.Ltd. C/o. At & Po.Umarda, Tal. Umarpada. The District Registrar, Representative, The Registrar, Co-op. Societies, Gujarat State, Gandhinagar. Shri P. Chellapa Representative, N.D.D.B., Anand.

(02622-220431)

14.

C/o.(02629253474)

15.

(0261)-2472051 (O)

16.

----------

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17.

Shri S.K. Bhalla / S. T. Desai Representative, GCMMF Ltd, Anand. Shri Jayesh H Desai I/C. Managing Director, sumul dairy, Surat.

-------

18.

(0261)2422180/2422137

Sumul vision
WE ARE SOCIALLY RESPONSIBLE ORGANISATION WITH COMMITMENT TO CONSUMER DELIGHT AND RESPECT FOR ALL. WE BELIEVE IN GROWTH AND CONTINUOUS IMPROVEMENT THROUGH TEAMWORK, TRUST & EXCELLENCE, WITHOUT COMPROMISING OUR HONESTY AND INTEGRITY

Content
TURNOVER MILK PROCUREMENT MILK SALE QUALITY PRODUCTION COST DISTRIBUTION SYSTEM

Year 2005-06
RS.512 Corers

Year 2010
RS. 1000 Corers

8,50,000 Liters 5,59,006 Liters


International std. ISO 9000 HAACCP Minimum Production cost Consumers oriented, Quick and effective

10,00,000
Liters/day

8,25,000 Liters/day
International std. ISO 22000 Minimum Production cost-Six Sigma implementation Consumers oriented, Quick and effective

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OBJECTIVES OF THE SUMUL DAIRY The Sumul Dairy was established with the following objectives:

To provide guaranteed remunerative milk market round the year for surplus milk. To provide maximum return to producers To Provide good quality Milk and Milk Product to consumers To increase milk productivity at most economic rate by providing technical input
services to the producers.

FUTURE OBJECTIVES OF SUMUL


The Sumul Dairy shall provide proper Nutrition and Good Health to its customers in addition to achieving customer delight.

Strategic Focus of SUMUL


1. Co-operative Focus: Veterinary Services. 2. Customer & market focus: Relationship, Awareness & Product availability as per their need and time competitors Watch, Own agents relationship, market research. 3. Quality Focus: Customers. 4. Organization Focus Think globally and act locally. Continuous Improvement in Quality defined according to Village level development, Clean Milk Production &

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Milestone of Sumul

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Work Area of SUMUL

SUMUL dairy is located near railway station road in Surat. It covers 15,000 acre land. Sumul provides milk collection facilities at the producers door in each village co-operative, where milk is speedily, efficiently and economically transported twice daily to its dairy plant and chilling centers for processing and marketing. Since the milk procurement system has been extended far and wide in the entire district. Sumul have five chilling center at Bajipura, Uchchal, Navi Pardi, Chaved and Dediapada site at a distance of 50,105,25,110,146 km respectively from Surat city. The chilled is then transferred to the mail plant at Surat railway station road.

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Unit of SUMUL & Their Capacity

No. 1 2 3 4 5

Chilling Center Sumul dairy Bajipura Uchchhal Navi Pardi Sumuldan

Establishment 1951 1975 1982 1996 1970

Capacity in LPD 500000 300000 100000 200000 300 mt/day

Distance from Surat (km ) 0 50 105 25 20

These 5 chilling center have provided have provided equal opportunities of milk marketing to the distantly inhabited tribal milk producers, which aids the economy of their milk production enterprise or else they would have been obliged to dispose of their milk to the middlemen at very low price. These chilling centers were established with a view to improve the quality of milk and ease pressure at its headquarters. A large plot of area was bought while establishing Navi Pardi Chilling Center keeping in mind to shift the dairy plant from city, if the need arises in future.

TOTAL TURNOVER OF SUMUL


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TURNOVER
Turnover(in crores)
700 600 500 400 300 200 100 0

16.28 % Increase from last year

647 548 353 183 0.41 18.83 78.11 382 425

1970-71 1980-81 1990-91 1995-96 2002-03 2003-04 2004-05 2005-06 2006-07

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Awards
1988-89: 1989-90: 1990-91: 1992-93: 1998-99: 1999-00: National Productivity Award By National Productivity Council, New Delhi Sardar Patel Saksharta Award for the efforts made to Tackle illiteracy National Productivity Award By National Productivity Council, New Delhi Jamnalal Bajaj Fair Practice Award Certificate of merit from National Productivity Council Appreciation Award by Quality Circle Forum of India, Baroda Chapter; Total Productivity maintenance Award by the Ahemdabad Management Association 2000-01: : 2001-02: 2001-02: 2002-03: 2003-04: : : 2003-04: 2004-05: 2004-05: 2005-06: 2006-07: 2006-07: 2006-07: Quality Excellence Award to the Managing Director, Sumul Dairy by Surat Management Association jamnalal Bajaj Fair Practice Merit Certificate Birla Cellulosic Award for Small Group Activity IMC Ramkrishna Bajaj National Certificate 2002 IMC Ramkrishna Bajaj National Certificate 2002 Enfuse National Award for energy efficiency excellence Chennai Best organization of the district by surat jilla sahakari sangh, surat Best garden of the company of surat city by SMC Surat CSI - TCS Award for best IT Usage Intelligent Enterprise Award Best of the best for Kaizen presentation by IITPM CIO-100 Award for IT &Best business Executive National Productivity Award FICCI Annual award for Rural Development. National Energy Conservation Award. Golden Peacock Award for Corporate Social Responsibility.

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Product Profile of Sumul


Products which are made and sale by Sumul
Liquid Milk Liquid Milk Milk Products Milk Products

Self Self Developed Developed Products Products

Whole Milk Whole Milk

Dahi Dahi Paneer Paneer

White Butter White Butter Pasteurized Pasteurized Standard Milk Standard Milk

Ghee Ghee

Flavour Milk Flavour Milk

44 11 22 Business Business Mission Mission Implementati Skimmed Implementati Skimmed on Milk on Milk Program Program Formulation Formulation Strategy Strategy formulation Cow Milk formulation Cow Milk Goal Goal Formulation Formulation External External Environment Environment Opportunitie Opportunitie & Threats ss & Threats Internal Internal Environment Environment Swot Swot Analysis Analysis Homogenized Homogenized Toned Milk Toned Milk

Butter Milk Butter Milk

Sweets Sweets

Shrikhand Shrikhand Skimmed Milk Skimmed Milk Powder Powder Sumul Sugar Sumul Sugar

Sumul Tea Sumul Tea

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Milk Products Milk Products

Growth Path of Sumul Products Products Milk distribution in bottle Milk distribution in polybag Butter milk distribution in polybag Whole milk (SUMUL YA) in bulk Whole milk (SUMUL YA) in 500 ml Flavor milk Homogenized toned milk in 500 ml Paneer Sweets Shrikhand Homogenized toned milk in 200 ml Pasteurized milk in 5 liter pack Flavored milk in 200 ml pouch Masala Chaas Masala chass, methi chass Pizza & Ice-cream Rasgulla, Gulab Jamun,Sugar & Cow milk Tea Glabletop Packing for Milk (Plane & Flavoured) Buttermilk in ESL Packing Cold Coco Year 1968 1978 1987 1987-88 1991 1993 1994 1994 1994 1995 1995 1998 1999 1999 2000 2001 2002 2003 2004 2005 2005

Company Overview Name Address : Surat District Milk Producers Union Ltd. (SUMUL) : Surat District Milk Producer Union Ltd.
Post Box No.-501, Sumul Dairy, Surat- 395008 PH: 2427691-94, 2422137, 2418717, 2418666 Fax: +91-261-2433572 E-mail: sumul@sumuldairy.com 26

MD Bankers

: Jayesh H. Desai

: The Surat District Co-operative Bank Ltd.,Surat


Sarvodaya Sahakari Bank Ltd.,Surat State Bank of India, Surat Bank of Baroda, Bhagatalao, Surat Surat Mahila Nagrik Sahakari Bank Ltd, Surat Surat Nagrik Sahakari Bank, Surat Indian Bank, Surat State Bank of Saurashtra, Surat DENA Bank, Surat Co-operation Bank, Surat

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PRODUCTION DEPARTMENT Introduction


Production is defined as arranging the manufacturing resources for the purpose of conversion of raw materials to saleable produces of optimum quality and minimum cost. Thus production is the systematic step-by-step conversion of raw materials through creation of from utility in goods. Manufacturing of goods is a highly complex process. Goods in the stock which are ready to sell do not just happen they are the end results of careful planning and control. The company makes the best use of man, materials and machinery for those sole purposes of economical delivery of quality goods to customers. 28

Production management is concerned with decision-making process related to the manufacturing process. It makes the best utilization of raw materials available and does necessary processing on it and converts it into utility. Production management is concerned with planning, organizing, controlling and co-ordination the manufacturing process, so that resulting goods or services is reduced according to the expectation, in the amount and by the cost. Thus, in a broader sense production management is concerned with coordination of men, materials, machines and money manufacturing goods. In a narrow sense it means planning, scheduling and controlling flow of materials to a plant. Sumul has produced 15,04,61,760 kg milk during the year out of which 100944886kg i.e.62.52% consulted Buffalo milk and 6,65,91,094 kg i.e. 37.50% consulted cow milk. Achievement in milk procurement is due to adoption of animal Husbandry as an effective tool for economic growth by milk producer members and their devotion to wards milk co-operative movement and also adoption of business approach by Sumul. the figures of overall fat% and SNF% in both buffalo and cow milk procured Sumul during the year, match with the normal milk standards (i.e. buffalo milk 6.8% fat, 9.00%snf, cow milk 4.3%fat, 8.5%snf) which aids the union in marketing good quality milk and milk products. Sumul has paid on an average Rs. 215/- per kg its milk producers / farmers. It has attained self-sufficiency in its milk requirement. Now. Sumul is in a position to surplus milk to mother dairy of Gujarat co-operative milk marketing federation limited, Gandhinagar and other district co-operative milk unions, in Gujarat.

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Structure of Production Unit.

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DAIRY PLANT TO MARKET LEVEL

Milk Receiving

Testing of Milk

Processing

Packing

Processing

Processing

Storage

Delivery

Market

Production Process Milk cycle 1. A machine milking the cow 2. Milk producers co-operative Ltd collects the milk from the entire village. 3. The collected milk is tested against the set standard. That ensures quality of milk being received from the root level. 4. The received milk is sold locally as well as transported to the dairy for the further processing 5. The milk is tested in dairy lab. No compromises with the quality of milk being received. 6. The qualified milk is received at raw milk receiving Dock at dairy.

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7. Cleanliness is always the top priority at any stage of milk cycle cans cleaning process. 8. Milk is pasteurized, clarified and standardized using lasted technological machine & equipments. 9. Milk again tested before being packed. 10. Pouch filling for all the end users. 11. Packed milk stored in well-maintained cold storage. 12. Milk dispatched for the sale in the marker.

An Overview of SUMUL Product


Milk Products Milk is the main product that is produced by the sumul. Milk acts as a raw material for the other products of sumul like curd, butter milk, paneer, etc. Sumul processes variety of milks such as whole milk, toned milk, cow milk, etc because the demands of milk are different from customer to customer sumul tries to fulfill all the demands, e.g. people who want Malai purchases whole milk standardize milk is used for tea. A white or yellowish fluid secreted by the mammary gland of animals. It consists of emulsion of fat in water with casein and other proteins, milk sugar and inorganic salts. The solids other that fat include protein, carbohydrates, water-soluble, vitamins and minerals.

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MILK MILK

FAT FAT

SNF SNF

VITAMIN VITAMIN A A D D EE K K

PROTEIN PROTEIN MINERALS MINERALS IRON IRON CALSIUM CALSIUM LECTORS LECTORS

According to the prevention of food adulteration rules 1995,the percentage of milk, fat and SNF in different classes and designation of milk specified respectively are as follow: Buffalo milk (5%-6% and 9%), cow milk (3%-4% and 8.5%) recombined milk (3% and 8.5%) double toned milk (1.5%-9%) and skimmed milk (not more than 0.5% and 8.7%) the fat percentage for the milk of Cow and Buffalo varies from state to state and is detailed is DFA rules.

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Types of Milks Name FAT (%) SNF (%)

Whole Milk Toned Milk Cow Milk Skim Milk ESL Milk Standardize Milk Buffalo Milk PSM Sumulya

6 3 3.5 0.07 ----4.5 5.5 4.7 6.2

9 9 8.8 9.3 ----9 9 8.8 9.1

Name of Raw Material or Ingredient:


1. Raw Milk 2. Skim milk Powder 3. Pasteurize white Butter 4. Pasteurize Skim Milk 5. Pasteurize Cream 6. LDPE Film 7. Water

Pure Ghee

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A Product obtained from milk, cream or butter from various animal species by means of processes, which result in the total removal of moisture and SNF contents, with an developed physical structure. Clarified butter fat with a strong flavor is prepared by heating makkhan. Name of Raw Material or Ingredient: 1. Pasteurize White Butter/White Butter 2. Sour Butter 3. Hd:Ld:Hd 4. 3 layer Polyethylene Bag 5. Tin (Lacquered) 15kg size 6. 1kg/2kg Size With Corrugated Box Paneer

Milk is heating to boiling temperature and limejuice, citric acid, or sour whey. Paneer contain 70% moisture. The whole milk paneer should contain 50%, milk fat on

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dry matter basic. In skimmed milk paneer the fat on dry matter basic should not exceed 13%.

Name of Raw Material or Ingredient 1. Pasteurized Standardized Milk 2. Citric Acid 3. Common Salt 4. Moralized Polyester Bag 5. Pasteurized Chilled Water Flavored Milk.

Milk standardized to a certain fat percentage to which some flavor such as chocolate and fruit syrup is added.

Name of Raw Material or Ingredient 1. Homogenized Pasteurize Toned Milk 2. Sugar 3. Flavor 4. Color 5. Glass Bottle 6. Crown Cork

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By product obtained after the removal of butter or cream from crud by churning or otherwise also known as chaas.

Name of Raw Material or Ingredient


1. Pasteurize Skim Milk 2. Skim Milk Powder 3. Batch Starter 4. Water

White Butter

Name of Raw Material or Ingredient


1. Pasteurize Cream 2. Corrugated Box 3. HM-HDPE Sheet 4. Pasteurized Chilled Water

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Sweet & Sikhand

A milk based sweets made from concentrated dahi with a sweet and sour taste. It is a semi-soft whole milk product prepared from dahi and resembles sweetened quark. Dahi is drained of its whey by hanging it in a cloth from 4 to 6 hours to producing a solid mass called chakka or maska. The resultant maska is mixed with the required sugar, condiments and flavor.

Name of Raw Material or Ingredient


1. Pasteurize Whole Milk 2. Pasteurize Skim Milk 3. Sugar 4. Saffrom (kesar) 5. Nuts (Kaju, Badam, Pista etc) 6. Poly-Propylene Cups 7. Sealing Foil 8. Corrugated Box

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Kesar Dry Fruit

Name of Raw Material or Ingredient: 1. Chakka 2. Sugar 3. Kesar 4. Almond 5. Cashew nuts 6. Kismis Elaichi Sikhand

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Elaichi Peda

Name of Raw Material or Ingredient


1. Milk 2. Cardamom 3. Sugar

Kesar Peda

Malai Puri

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Name of Raw Material or Ingredient:


1. Milk 2. Sugar 3. cardamom 4. Ghee 5. Pista Rasgulla

Gulabjamun

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Sumul Milk Powder


Name of Raw Material or Ingredient: 1. Pasteurized Skimmed Milk. 2. LOPE film. 3. Kraft Paper Bag.

Khawa
A product obtains from Cow, Buffalo or mixed milk by heat desiccation of milk to 65-50% solid in an open pan. It is also called as khawa or mava.

Sugar

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Activities of Production Departments


1. Production of planning 2. Material requirement planning 3. Store finished goods and raw material 4. Quality control 5. Packaging 6. Painting of pack product 7. Transport to Marketplace 8. Washing and cleaning of equipments, regular maintenance of machine and other equipments.

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Support Services
Maintenance Packing Maintenance Maintenance is necessary for both raw materials as well as finished goods. The company has to put stress on the matter regarding the spoiling of goods due to weather or other aspects. At SUMUL, there is a strong maintenance procedure on raw materials & final products, because such milk products should be maintain in such way they maintains their quality for the long period of time. Packing Packing is one of the most important factors that management must have to consider in mind. When the raw materials are converted in the finished goods all the products are then send to the packing room. Here different machines are available for different types of packing. The firm is now going for a new type of packing called Gable top packing. The main advantage of such type of packing is in this packing milk remains fresh for about 10 days. Soon, Sumul milk will be available in such type of package.

Maintenance Packing Maintenance Maintenance is necessary for both raw materials as well as finished goods. The company has to put stress on the matter regarding the spoiling of goods due to weather or other aspects. At SUMUL, there is a strong maintenance procedure on raw materials & final products, because such milk products should be maintain in such way they maintains their quality for the long period of time. Packing

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Packing is one of the most important factors that management must have to consider in mind. When the raw materials are converted in the finished goods all the products are then send to the packing room. Here different machines are available for different types of packing. The firm is now going for a new type of packing called Gable top packing. The main advantage of such type of packing is in this packing milk remains fresh for about 10 days. Soon, Sumul milk will be available in such type of package. Material Handling Equipments Used Equipment Milk Tankers : Sumul On contract Tempos (on contract) Belt Conover Crates Cans : 40 Liter. 20 Liter. Crates Trolleys Cans Trolleys Plastic Tube Glass Betties (200 ml) Quality 13 11 70 8 40,000 250 25 50 10 5 35,000

QUALITY CONTROL
FOR QUALITY CONTROL SUMUL DAIRY HAS MADE SOME POLICY REGARDING THE QUALITY MAINTENANCE. IN SUMUL DAIRY, THEY ARE DEVOTED DEDICATED AND MOTIVATED WORKFORCE TRAINED TO ENSURE CONSISTENT SUPPLY OF GOOD QUALITY AND SAFE MILK PRODUCTS TO ACHIEVE HIGHEST LEVEL OF CUSTOMER SATISFICATION They achieve this by continuous training of the producers members and continuous monitoring and up gradation of procedures and processes applying scientific innovations and state of the art technology received from Sumul union. They are also committed to social and economic development of the community and remain eco-friendly

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Objective
To procure clean and good quality milk and to ensure timely and consistent supply to union. To ensure economical and social development of producers by maximizing the return. To maximize the number of woman producer member by remaining united with the sprit of cooperation. To ensure maximum production of milk by utilizing the state of art services like artificial insemination from trained and qualified personnel of the union.

Environment Policy
Surat District Co-operative Milk Producers' Union Ltd. Is engaged in manufacturing of Milk and Milk Products and marketing it within Surat district under "Sumul' brand and outside Surat district under brand name of "Amul' and 'Sagar". They are conscious and committed to protect and preserve Environment.

The guiding principles of our Environment Policy are as follows: Comply with all applicable environmental legislation, regulations and other requirements. Control Plant Operations to conserve natural resources such as water, electricity & fuel and prevent pollution. Promoting greening of the earth in and around our manufacturing complex. Minimizing generation of 'waste or effluents. Continual improvement of our environmental performance. Creating awareness towards environmental issues among suppliers and stakeholders.

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This Environment Policy shall be communicated to all employees and made available to contractors, transporters, suppliers, customers and other interested parties. In line with its quality policy and its Environmental Policy SUMUL has achieved the ISO Certification, namely: ISO 9001-2 FOR QUALITY CONTROL ISO 14001 FOR ENVIRONMENTAL SAFETY MANAGEMENT And also has HACCP- Hazard Analysis Critical Control Point

TOTAL QUALITY MANAGEMENT


Sumul also has adopted TQM under these Sumul has got various quality certification. Some of them are as follows:

ISO - 9000
ISO means International Organization for Standardization. It is the international level organization, which is done to keep rules and regulation of preservation. It was established in 1946 and in 1979 has been implemented contains ISO-9000 series, which standardized by providing certificate. Following points are considering for implementing: To arrange commitment of top management and starling To decide quality policy. To make quality manual To implement quality procedure manual.

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As per quality procedure manual all the system are audited. Non Conformity report checks if it is not as per manual. Union has adopted International Standards for Quality Management. QAS Australia has certified SUMUL quality management systems by issuing ISO 9002, ISO-14001 and H.A.C.C.P. Certificates. By adopting quality management system, SUMUL has standardized all process and procedure system for production of milk and milk products. As usual, it is easy to design system but difficult to implement it. But with active Participation and dedication of workers and staff & with better leadership & guidance of Board of Directors, Officers, Continuous training programs under TPM, they have successfully Implemented ISO Standards. At every six months interval, Total Quality Management System has to be audited and if found proper as per standard Quality Management norms then certification are renewed. They have received continuous renewals .

ISO 14000
This certificate is for environmental control and it came in the year 2002. Accreditation of ISO 14001 certificates is a testimony of their commitment towards their customers for 100% quality safe milk and milk products. By complying with Terms and Conditions of ISO 9002, ISO 14001, HACCP, Quality Management and Environment Control, Union has undertaken various measures for fully automation in their various production lines; installation of Automatic Machinery in various production lines is in progress.

Not only that, but Sumul has also various quality certificates like: HACCP GMP TQM TWE;TEI;TQC TPM SGA

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Quality Circle Kaizen, CA, PA, NC FSMS 22K

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Hierarchy of Marketing Department

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Objective of marketing department


Increase the yearly sale of Sumul products by 15 present in compression of last years same month. The monitor the internal and external customers satisfaction level. To monitor the product and the storage condition including GMP and distributors parlor retailers levels. Training and awareness to customer regarding ISO-9000, ISO-14000, HACCP, GMP and Sumul products about 1000 customer per year. Appoint 5 new agents per month to make milk easily available in market. To take 25 milk awareness programs at various schools in Surat.

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Sumul Milk Marketing System


Sumuls milk marketing in Surat city is monitored, eliminating costly sales-booths and though regular and assured twice a day supply of milk to 1662 concessionaires (Agent) and 198 institutional buyers, through 85 contractors route vehicles. There is guaranteed cash inflow of the sales proceeds on day-to-day basis and safe return of crates etc. to the Dairy. The standardized / pasteurizes milk is dispatched to the city twice a day to the network of concessionaires (Selling it on behalf of Sumul on a commission basis). The institutional buyers are supplied milk in sealed cans. Contractors trucks carry milk from the Dairy Plant to the places of these concessionaires who caters to the domestic demand of milk in their respective earmarked areas. Both economic and operational advantages of keeping the sales-counters at the residential places of the Agents are distinct as: No creation or maintenance of these sales-counters is involved. All the security of milk, material and money. Operational convenience to deliver milk and off tack of crates etc. from these permanent places at any time, including odd hours. Utilization of Agents family, labor and residential place and hence very economic operation for them and the Dairy. Familiarity of the Agents with locality and vice-versa and hence smooth dealing under mutual confidence. The institutional buyers include hotels, restaurants, canteens, hotels, charitable institutions, milk vendors etc. who enter into contracts for purchase of milk for the entire year and receive milk as per the contract, twice-a-day, in sealed cans, through the contractors milk routs and make the full payment to the Dairy Representative just at the time of delivery of milk to them. The contractor are responsible for any shortage, breakage OR pilferage of milk and material occurring during transportation. While the Agents hold the responsibility of any such incidence occurring at their level. There is regular, assured and smooth in-flow of cash from milk sales from the Agents to the Dairys Cash Collection Centers on day-to52

day basis without involving a bank for collection of sales-proceeds and maintaining individual accounts. The Agents sale milk delivered to these Agents during the day and they develop the sale-proceeds daily at the nearest Cash Collection Centers of the Dairy. The Dairy runs these Centers for all 365 days in a year for regular day-to-day receipt of cash amount. For any default on the part of the Agent, such as non-payment or shortpayment of cash, the Dairy takes corrective action almost instantaneously. Sumul also encourage a small Savings Scheme for the Agents by deducting a particular amount from the commission every month and transferring the same into their deposit amount, thereby allowing the deposit to build-up every month, which gets additional security to the Dairy as well as to Agents. Any amount in excess of three times, the realization from the daily sales can be withdrawn by the Agent any time during the year. Currently the commission of 40 paisa per liter is paid to the Agent.

Channels of Distributions

Direct Distribution Channel : Sumul is handling 1900 outlets for selling their buttermilk, tea and sugar.

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Indirect Distribution Channels : Sumul is distributing various products: milk, milk products & other than milk products. There are 3 major distributors in Surat city & 19 distributors in rural areas. All dairy cooperative society acts as a distributor for all Sumul products. In Surat city Sumul has created 3400 outlets; Sumul has their own 44 milk parlors which are in direct contact with the customer. Information technology growing very fast and Sumul always ahead in technology. Customer should be got advantage of these technologies for this reason Sumul Started online shopping facility to Direct Customer as well as Distributor and parlor also net facilities like.
Direct Customer Distributor and parlor www.sumuldairy.com www.b2bsumul.com

The distributors and parlors cover whole Surat District including Surat City, Bardoli, Vyara, Kodod, Ukai, Chalthan, Kamrej, Kim, Kosamba, Olpad, Kathor, and Sayan. This whole district is covered by almost 3000 retail outlets; They constantly remain in contact with the customers. In dairy industry Sumul Dairy is wide term. We are the market leaders in almost each dairy product in Surat District. Product Ghee Paneer Shrikhand and Sweets Market Share 70% 50% 15%

Promotions Policy
Promotion activity mainly consists of advertisement. Sumul is a cooperative sector and so the advertisement budget is quite less. However Sumul dairy spend nearly 20 to 25 lakh on the advertisement. The contract of advertisement is with the Venus ads. Here advertising is done through hoardings, banners, wall painting, newspapers, and stickers etc. Sumul as part of promotion activity holds Sumul healthy baby contest on regular intervals. The participation is increasing every time the contest is being held. Here every one is given information about product of Sumul and their views regarding the Sumul 54

product. What change they want? Which other product they want? Are also being asked shop painting is also promotion activity carried on by them.

Another Promotion Activity


Changes have been done in packing and slogans of few products. Door to door advertising is done for new product. Facility of taking loan from bank for vehicle and refrigerator are given to agents. A mobile van with facility to test milk show films to customers and address public regarding the hygienic aspects of Sumul milk. Sumul Dairy Cooking Competition organized by Sumul at Hotel Holiday Inn, Surat. Rasoi Show organized by Sumul at Hotel Holiday Inn, Surat. Sumul Healthy Baby Competition. Sumul Painting Competition 2002-02 organized by Sumul & Saint Xaviers School. School students visiting Sumul as a part of their education to know about production activity.

System of Approaching to the customer


Sumul is doing the following activities to Approach its customers. 1. Advertisement: By giving the advertising and to a local TV channel by hosting famous anchor advertising through during festival Seasons. 2. Hoarding: Advertising through hoardings during Festivals 3. Paneer Show: In this show different items made from paneer are sold at a discount rate. 4. Healthy Baby Contest: In order to popularize milk and milk products, Sumul organize every year Sumul Healthy Baby Competition. Healthy Baby Contest is unique contest of its kind in Surat. It is conducted each year since 1992 successfully.

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5. Education Programs: The firm also gives information to the cool children about cow milk by visiting different type of schools in Surat city. 6. House Visits: The companies also visit different houses and collect information about different products of the company and also take suggestion from the customer.

Customer Satisfactions
Sumul has made FEEDBACK system to know the customer satisfaction, for that following action has taken: 1 2 3 4 5 6 7 After personal visit to customers & explaining the causes of complaint. Replacement is given for storage milk or low weight milk pouches. If agents changes more than MRP than they are fined & even terminated. Agents may also be terminated for his unwanted behavior. Customer satisfaction is most important for the organization. The organization goes for consumer survey to know their preferences & intended Demand. A separate wing is creating in the sales department who takes care of customer complaint. Consumer forums in different areas are formed and regular meeting are organized to address their grievances. 8 9 Complains are received either by the letter or telephone. Complains are entered in to the customer complaint resister.

10 Seeing the nature of complaint, action is taken. They also take care of solving complains like: Complain Curding of milk Low weight Price changed by the agent more than MRP Agents Behavior

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Leakage Complain Process Steps Receive the complain Complains are received either by the letter or telephone. Complaints are entered in to the customer complaint resister After the proper evaluation of complains the necessary steps or action are taken by the marketing department.

Record of customer Base


Sumul has got more than 1900 customer (approx) and Cods No. is given to each and every customers telephone / fax no., email, person to be contacted. Sumul is also maintaining file for each and every customers and copy of any correspondence exchanged between the customers by Office of Branch Office are available in the said file for reference, i.e. whenever Office is corresponding with the customers, a copy of the same will be forwarded to the respective Branch Office and Vice-versa.

List of Competitors
The raw milk section comprises local co-operative such as Choryasi, Payal etc. & Vendors. Following some of the dairy all from the district i.e. from North Gujarat & Maharashtra: 1. Unity dairy, Uttarsanda 2. Jeevan Shakti, Dhuliya 3. Vishalsagar, Dhuliya 4. Gopi Milk Products, Puna 5. Gautam Milk Products,Kopargoan 6. Gayatri Milk Dairy 7. New Suraj Dairy, vijapur 8. Sarita Milk Producyts, Kadi 9. Britannia Ghee 10. Neslte Milk powder, Ghee

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11. Sardar Dairy, Mehsana 12. Vimal Dairy, Mehsana 13. Royal Dairy, Gandhinagar 14. Suffal Paneer 15. Satyam Dairy, Gandhinagar 16. Sumathur dairy

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Hierarchy of Human Resource Department

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H.R. department is the key department of the any business. H.R. department is the main part behind the companys success or failure. H.R. management is that part of management, which is concerned with people at work and with their relationship within an enterprise. Its aim is, to bring and develop into an effective organization. The men and women who make up an enterprise and having regard for the well being of individual & of working groups to working groups to enable them to make their best contribution to its success. H.R. management is a continuous process. It is a never-ending process. It helps in achieving objectives of company. This is done by proper perform of H.R. function like recruitment, selection, training & development, motivation, welfare etc. it also helps to keep a smooth relationship between employers & employees.

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Sumul believes that the most significant resources are its Human Resource and Sumuls Success in the long run depends very much on the quality of its human resources. Human resource comprise the aggregate of employee attributes including knowledge, skill, experience and health, which are presently available to the organization for the achievement of its goal, objectives and service to the society.

Role of HR in Sumul
1. Alignment of HR vision with Corporate Vision 2. Shift from support group to strategic in business operations 3. HR as a change agent. 4. Enhance productivity and performance by developing employee competency and potential. 5. Developing professional attitude and approach 6. Developing Global Managers for tomorrow to ensure the role of global players.

Human Resource Activity


In SUMUL HR dept. is very important. The main activities of this department are Recruitment, selection, training, and welfare actives. To diffuse the effect of Global Competition, Sumul has adopted the latest concepts of management practices and provided appropriate training with the help of leading institute from time to time for up-gradation & development of its Human Resource Some of the efforts of Sumul to achieve this are:

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Employee Personality Development (Attitude, skill & Knowledge) Self Development (Self management Leadership, Meditation) Total Quality Management, QC, SGA, Kaizen, SQC Total Productive Maintenance Meditation Hall

1995

1995

1996 1999 2000

Employee Records
SUMUL keeps the perfect & day-to-day employee record of the entire employee in the company. Here all the employees are given certain codes & their data are entered in the computer according to the code. All the employees record is written down accurately whether the employees are new or old. From the employees records only the company can know that to whom the company should given the promotion & to whom the

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company should give demotion. From all the working period of the employee, the company calculates the provident fund & the allowances of the entire employee. From the employee record, the company can know the employees honesty performance, efficiency, loyalty etc. Generally the company also needs record information pertaining employees that are as follows. Employee name. Employee present residual address with telephone no. Employee Permanent address with telephone no. Employee birth date Employees education qualification Year and date of joined services Department in which currently works. To whom to contact in your absence at your residence & the nearest phone no. Age Male / female

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Human Resource Planning


Human Resource Planning is not exactly done by H.R. department in Sumul, H.R. department gives the details to managing director and after see all details managing director done H.R.P.. Human Resource Planning is done by M.D. before 2years ago.

Recruitment & Selection Process


Sumul does not have a well-defined recruitment policy. Recruitment in Sumul is basically done by HRD department in consultation with the concerned department for which new employee is required. It is not a regular event as recruitment is done only

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when there is any vacancy or some requirement comes up in the organization. All the new employees must meet the minimum experience and qualification criteria as set by H.R. department.

Recruitment Process
HR Department receives requisitions. Locating and developing the sources of required number and type of employees. Identifying the prospective employee. Communicating the information. Generally, two types of SOURCES are used in the Organization: 1. Internal Recruitment: It is generally done through promotion and training programs. 2. External Recruitment Campus interview. Advertisement.

Campus interview
Campus interview done by Sumul dairy they go to the concerned colleges and encouraged the student to apply for the job and take the student interview.

Advertisement
Sumul gives the advertisement in different news papers like Times of India, Gujarat Samachar, Divya Bhaskar, Sandesh etc.

Selection Process
The Selection Process is concerned with to choose the right person for the right job, determining whether an applicant meets with all the qualification need to perform a particular job. It is very important because of a wrong person is selected it will cost to the company. Need of selection would be arise when vacancies are made in organization.

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Procedure for selection is differing from organization to organization and from job to job. Sumul selection process is:

For Executives
Written Test Aptitude test Subject test

Group Discussion Interview Final selection

For Non-Executives
Written Test Final interview Final selection

Training and Development


Training is very important aspect for any organization. Sumul is such organization which has arranged no. of training programs for their employees. In Sumul generally Training is given in 3 Categories which are as follows:

Induction Training
Management Training Office Training Senior Executive Training

Induction Training is given by different departments for which person execute. The management training is given for 6 months. Officers and senior Executives attend the management development programmed organized by the institute. Training is not uncommon in Sumul. It has an elaborate training program to make employees acquire 67

new skills and knowledge. Both internal and external training is carried out as and when required. Promotions and Transfer Policy

Promotions Policy
The Management Trainees are given 6 month training and later on if they perform well, then they are promoted as provisionary and after one year they are confirmed. Moreover promotion is given on the basis of education obtain by different personnel.

Transfer Policy
There is not any policy for transfer, but managing director of the organization generally takes the transfer decisions.

Wages and Salary Structure


In Sumul generally 3 types of allowances are given which are as follows: Dearness Allowance Additional Dearness Allowance (ADA) House rent Allowance (HRA) Some fixed amount of house rent allowance is provided for those who live in rental house. Sumul has a fixed increment system for each level of authority in the organization. Only one increment is given a year. However for calculating increment for an employee, the period of time the day of his joining are taken into consideration. Rather month of January and July are considered as base month for the same. For instance, an employee joining the organization in second week of January in 2006 would be having his next increment due in 2007 July not in January. There is also a compulsory increment every 14 and 23 year in which, the employee becomes eligible for immediate next salary scale. Plus two increments without any change in his/her designation. However, during last agreement, upgraded employees have also been given designation as per new salary scale. Recently, Sumul has revised its pay structure to attract more young talents like:

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Leave Travel Allowance (LTA) Every year allowance is given to employees for traveling any place. This amount is also fixed. Super Annuitant Scheme (SAS) it provided after every 3 years (BASIC+DA+ADA). Washing Allowances (WA) Rs. 20/- is provided every month as washing allowances to worker category. City & Travel Allowance (CTA) Those who live in city are given these allowances more than those are in the village. Shift Allowance (SA) Shift allowance is provided in following way: In Sumul there are 3 shifts exist. PRESENCE IN ONE-MONTH ALLOWANCE (Rs.) 25 & More 24 23 22 21 20 & Below 65 60 45 30 15 00

Visiting Allowance (VA) This allowance is given to the entire field officers and veterinary officer. Bicycle Allowance (BA) It is give to all permanent employee of worker category. Scooter Allowance (SA) This allowance is given to all the officers and marketing executives. Driving Allowance (DA)

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It is giving to the drivers of tempos and trucks of SUMUL. Other Components: Bonus (8.33% of BASIC +DA+ADA) Funeral Fund Rs.3000 to the ward and family of the dad. Every month Rs1/- of all higher executives salary is maintained for this fund .

Welfare Activities
Sumul Dairy also provides some welfare facilities to their employees which are: 1. Canteen facility: Sumul Dairy provides to employees canteen facility, to take Break-fast, Lunch and Dinner at economic price. 2. First aid facility: It is given for quick remedy of employees, when any accident occurs during the working hours of the organization. 3. Washing facilities: The facility of washing clothes is provided to all the employees 4. Store & Drying facility: The full time workers are given personnel lockers to store their things and also facility for drying clothes. 5. Rest room: It is also provided to take rest during the Lunch hours. 6. Vehicle parking space: It is provide for employee, worker and visitors separately.

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7. Accommodation: Organization is providing township & accommodation facilities to employees. 8. Vehicle loan: It is given to Employee / Executive only. 9. Department stores: KAMDHENU department store is in the staff ready credit society / Staff Quarters to purchase all necessary items at economic rate for employee. 10. Uniforms, Shoes and Raincoats: Uniforms, Shoes and Raincoats are provided to all employees and workers. 11. House rent recovery: House rent recovery for those employees who are live in rental house.

Industrial Relations Environment


The industrial environment is very good in the organization. Union and management relation are very cordial. Trade union exists affiliated to Surat District Kamdar Sabha. Settlement is done after every 3 years. Salary + other welfare activities are included in settlement.

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Hierarchy of Finance Department

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Sumul is the co-operative so it has not special financial department. Sumul require a lot of funds for meaning its working capital needs and other obligations. It manages its working capital needs through internal funding only. There is regular, assured and smooth in flow of cash from milk sales from the agents to dairys Cash Collection Centers on day-to-day basis. The dairy runs there centers for all 365 days without fail. Intact there is a separate cash recovery department in the organization to look exclusively this aspect because of its excellent cash collection system. Sumul generally does not face any difficulty in dispensing amount to the producers every month and meeting other obligations. However, for the expansion work and setting up new projects, it takes loans from NDDB.

Objectives
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The main objective of finance department is Sumul are as under. 1. To monitor & measure debtors 2. To prepare profit & loss account 3. To maintain working capital at minimum level compared to last year. 4. To prepare a balance sheet of 7th may each year. 5. To monitor & measure internal customer satisfaction. 6. To increase short-term investment by 10%.

Sources of Finance
In the Sumul dairy requirement of finance is major into two major areas. 1. In working Capital 2. Investment on expansion These requirements fulfill by taking loan and issuing share. 1. For working capital To meet the needs of arising working capital Sumul makes transactions from the following banks. The Surat District Co-operative Bank Ltd, Surat Sarvoday Sahakari Bank Ltd, Surat State Bank of India, Surat Surat Mahila Nagrik Sahakari Bank, Surat Indian Bank, Surat Dena Bank, Surat Co-operation Bank, Surat 2. For Investment and Expenses National Dairy Board Share capital Debenture

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Activities Of finance Department


1. Planning & budgeting of financial resources. 2. When financial resources is not that time taken loans. Issuing shares. 3. Issuing financial resources to different department. Working capital managing 4. Balance sheet & Annual general prepared. Accounting management. 5. Cash management

Annual Business Plan


The annual business plan is prepared by taking the information regarding sales of every product. The sales officer compile these data taking into consideration growth rate of city population, per capital consumption so as to arrive at overall market size and r=targeted market sale for Sumul product, for the effectiveness of annual business plan the data regarding marketing channel, and product mix are needed. Data required for annual Plan 1. Product mix plane 2. Marketing channels 3. Manpower requirement 4. Estimated investment 5. Institutional demand 6. Segment wise demand estimation 7. 5 Years procurement analysis 8. 5 Years procurement capacity 9. Urban population demand

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Relationship of Finance Department Marketing


The job of marketing department is to boost up the sales and increase the profit of the company. Therefore it is essential for the marketing department because to continue with any department one surely needs finance. The main function of marketing department is to explore and research the market so that company can develop itself. Finance is also required to train the marketing staff to perform its functions properly. Development and malignance of new or existing products or services requires finance. Finance assists marketing in promoting the product moreover it also helps in fixing competitive price of a product. In todays highly competitive market it becomes unavoidable to ignore finance, through finance proves to be a base for marketing they are interrelated with each other by pricing {one of the 4 ps of marketing} In this company finance assists marketing activities by providing incentive schemes, free gifts, literatures, etc for promotional activities. It is useful in exploring and making a place in the competitive market. The companies distributors have to bare the major marketing expenses as they are given the responsibility of marketing (Promotion).

Production
Production and finance department are interrelated with each other. Finance is required for the production activities of the firm. It is required to keep the cost in control so that finance is used economically and judiciously. Main functions of the finance department are to minimize cost of production. Production and finance department are to make decisions whether to buy or make a product. To increase product lines also finance is required. The company requires finance for setting up of plant, buying machineries and equipments, capital expenditures, etc. obviously the company will also made finance for day-to-day expenses like operating expenses, and variable expenses etc.

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Personnel
Personnel department is always heavily dependent on finance department. Finance department requires personnel along with computerized systems (if any) to run the department harmoniously. Even through there may be computerized system but personnel are required to manage these systems. In this company very little amount of finance function are undertaken do the requirement of personnel departments limited to an extent but finance is required to pay the personnel of the company. Hence, we can say that personal and finance department are interrelated with each other. Computerized system of accounts As finance Department in SUMUL deals with various transaction of finance it always maintains computerized system of accounts. Tally 0.9 software is used in finance department and mercantile is used in Accounting. They maintained this system of accounting because it is also helpful in forecasting the costs, expenses, income, etc moreover, maintaining manual accounts in much time consuming and may lead to inaccurate result. The company has prepared their own made software for billing and other purpose. This software was specially design for the firm according to the requirement of the firm. Payment Process 1. Collection of sales bills & sales data 2. Data verification with sales information 3. Feed concern data in computer 4. Feed duration data in computer 5. To pass duration entry to the computer.

To the milk product


Finance department will make payment on the base of certified & approved bills. Receipt of milk collection data.

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Verify the data with concern department & payment for each dairy co-operative society. Feed all the data in computer with oracle support Reduction of DCSP (dairy co-operative society purchase) & other miscellaneous Account of net amount payable to society is prepared. The payment will send by MT (Money Transfer) by district co-operative bank.

To the Transporter
All the come to the finance department for final payment. Every bill is certified by the concern department authority. They have to give justification for any expenses.& then finance department will make payment to the transportation for any expenses.& then finance department will make payment to the transporters on the bases of certified & approved bills.

78

79

Purchase Department Introduction


In a narrow sense the purchasing means going the open market, finding the lower price at which a standard item is offered & selecting a supplier who is offering it at that price. But in broader sense purchasing is much more then that. It can be defined as an art or science. The purchase department organizes their purchase function in such a way so that it facilities smooth functioning of manufacturing processes. They make timely purchase of row material and other required items. They organize their purchase and store function in order to reduce their cost and time.

Activities of purchase Department Organization


Mainly purchase dept is related with store dept for finished product development. When any parts, components or any other things are needed then concern dept. give order to the dept. This indent first of all goes to store dept, store dept verifies the stock position and later by giving code number and last purchase reference being related to purchase dept. 1. Receives the purchase orders. 2. Checking the present stock. 3. Placing order for purchase on the basis of price & quality. 4. Preparing comparative statement of party tender. 5. Before receiving raw material checking all the required parameters. 6. Put order on the basis of price list of all the manufacturers. Following materials come under purchase department: Packaging material. Machinery spare parts. Electrical equipments. Stationary products. Computer Hardware Chemicals for Quality controlled lab Instrument for calibration

Separate space for each type of products is made and in bin card quantity used & quality present all such entries are made.

80

Stores Department Introduction:


Stores Department mainly deals with storing of raw material, finished goods, inventory management and keeping the records

Activities of stores department:


Storing raw material and finished goods providing the equipment whenever required Maintain bin cards prepare indent letters Keeping records of materials used purchased & current stock

Store procedure:
When new purchase of raw material is done send to store division, store in charge will verify the quantity received & another person from concern dept check the received stock. Finished goods store directly from production dep & finished stocks send to store. About the quantity received on one day the same is entered by store in charge with date & time.

Inventory Management:
It is a very crucial part of working capital, hence it is necessary to manage inventory effectively & efficiently. It is consists of following:

Raw Material:
Packing material Machinery spares part Electrical equipment Stationary product Computer hardware Edible essence & colors Chemical for Q.C sLab Instrument for calibration 81

Finished Goods
Ordinary Storage Cold Storage

82

FINANCIAL ANALYSIS OF SUMUL DAIRY

83

Objective of the study


To analyze the financial soundness of Sumul using Ratio analysis. To do year wise comparative study of Sumul financial soundness through Ratio analysis. To compare financial soundness of Sumul with an industrial leader (Amul). To compare the Net working capital of Sumul. To study the Cash management system of Sumul.

Financial Analysis of SUMUL Dairy Introduction:


Financial Analysis is the process of identifying the financing strength and weaknesses of the firm by properly establishing relationships between the item of the balance sheet and the profit and loss account. The analysis of financial statements is a process of evaluating relationship between component parts of financial statements to obtain a better understanding of the firms position and performance.

Users of Financial Analysis:

Management :Management of the firm would be interested in every aspect of the financial analysis. It is their overall responsibility to see that the resources of the firm are used more effectively and efficiently, and that the firms financial condition is sound.

Trade creditors:-

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Trade creditors are interested in firms ability to meet their claims over a very short period of time. Their analysis will therefore confine to the evaluation of the firms liquidity position.

Suppliers of long term debt:Suppliers of long term debt are concerned with the firms long term solvency and survival. They analyze the firms profitability overtime, its ability to generate cash to be able to pay interest and repay principal and the relationship between various sources of funds.

Investors:Investors have invested their money in the firms shares, are most concerned about the firms earnings. They restore more confidence in those firms that show steady growth in earnings. As such they concentrate on the analysis of the firms present and future profitability. They are also interested in the firms financial structure to the extent it influences the firms earnings ability and risk.

85

Ratio Analysis
Financial Analysis is the process of identifying the financial strengths and weakness of the firm by properly establishing relationships between the items of the balance sheets and the profit and loss account. The financial analysis is to be carried on by taking various ratios I to consideration for this purpose. By performing ratio analysis one can easily observe the firms financial condition in short term as well as long term perspective. Also the profitability is judged by this exercise. Ratio analysis is a very powerful analytical tool useful for measuring performance of an organization. The ratio analysis helps the management to analyze the past performance of the firm and to make further projection. A ratio: Is the mathematical relationship between two quantities in the form of a fraction or percentage. Ratio analysis: is essentially concerned with the calculation of relationships which after proper identification and interpretation may provide information about the operations and state of affairs of a business enterprise. Ratio analysis is a process of comparison of one figure against another, which make a ratio, and the appraisal of the ratios to make proper analysis about the strengths and weakness of the firms operations. The calculation of ratios is a relatively easy and simple task but the proper analysis and interpretation of the ratios can be made only by the skilled analyst. While interpreting the financial information, the analyst has to be

86

careful in limitations imposed by the accounting concepts and methods of valuation. Ratio analysis is extremely helpful in providing valuable insight into a companys financial picture.

87

RATIO ANALYSES

LIQUIDITY RATIOS

PROFITABILITY RATIOS

ACTIVITY RATIOS

CAPITAL STR. RATIOS

A. Liquidity Ratio: - It shows ability of the firm to pay short term liabilities. B. Profitability Ratio: - It shows ability of the firm to earn the profit. C. Activity / efficiency / Turnover Ratio:- It shows the efficiency with which firm uses the assets D. Capital structure / solvency ratio / leverage ratio: The long term solvency of a firm can be examined. E. Expenses Ratio: - It shows expenses of the company as compare with sales.

88

RATIO ANALYSIS
[A] Liquidity Ratio: Current Ratio C.R. = Current Assets Current Liabilities Particular
Current Assets Current Liabilities Ratio

(2005-06)
99,75,16,315 90,00,93,123 1.11:1

(2006-07)
1,13,75,08,222 92,00,22,319 1.24:1

(2007-08)
1,56,45,47,395 1,41,61,34,241 1.10:1

Current Ratio

1.25 1.2 Range 1.15 1.1 1.05 1 2005-06 2006-07 Year 2007-08

Interpretation:The current ratio is the ratio of total current assets to total current liabilities. The higher the current ratio higher the firms ability to meet current obligations and greater the safety of funds of short term creditors. Conventionally, a current ratio of 2:1 is considered satisfactory. Here in our case the current ratio comes around 1.11, it increase in 2006-07 so company have insufficient liquid they should increase their asset.

89

Liquid ratio: L.R. = Liquid assets Liquid liability

Particular
Liquid assets Liquid liability Ratio

(2005-06)
73,09,26,655 90,00,93,123 0.81:1

(2006-07)
76,03,25,722 92,00,22,319 0.83:1

(2007-08)
1,01,98,46,119 1,41,61,34,241 0.72:1

Liquid Ratio

0.85 0.8 Range 0.75 0.7 0.65 2005-06 2006-07 Year 2007-08

Interpretation: The liquid ratio represents the liquidity position of the company. The higher the liquid ratio, the greater the margin of safety. The larger the amount of current assets in relation to current liabilities, the more the firms ability to maintain its liquidity position. It indicates the availability of current assets except stock in rupees for every one rupee of current liability. Here in our case liquid ratio is less and not satisfactory.

[B] Profitability Ratio:

90

Gross Profit Ratio: G.P. Ratio= G.P X 100 Sales G.P. = Sales C.O.G.S Particular
G.P Sales Ratio

(2005-06)
83,69,79,251 5,21,72,76,469 16.04%
G.P.Ratio

(2006-07)
1,01,91,81,581 6,06,85,26,718 16.79%

(2007-08)
1,13,89,71,947 6,99,84,77,872 16.27%

16.8 16.6 16.4 Range 16.2 16 15.8 15.6 2005-06 2006-07 Ye ar 2007-08

Interpretation: Gross Profit is Relationship between Sales, Price, Volume and Costs. A high ratio of gross profits to sales is a sign of good management as it implies that the cost of production of the firm is relatively low. A relatively low gross margin is definitely a danger signal, warranting a careful and detailed analysis of the factors responsible for it. In our case, Gross Profit ratio is near about 16 to 17% in three year. As our company is co-operative company so profit is less but still company should occur its Gross Profit around 20%.

Net Profit Ratio: N.P.R = Net Profit X 100

91

Sales Particular
Net Profit Sales Ratio

(2005-06)
1,14,00,566 5,21,72,76,469 0.22%

(2006-07)
1,63,31,368 6,06,85,26,718 0.27%

(2007-08)
2,07,61,681 6,99,84,77,872 0.30%

N.P.Ratio

0.3 0.25 0.2 Range 0.15 0.1 0.05 0 2005-06 2006-07 Year 2007-08

Interpretation: Net profit ratio shows the percentage of net profit of sales. Healthy net profit ratio shows better profitability by the company. From the above table we can say that Sumul Co. Oper. Ltd. Increase their profit slowly but continuously but still their profit is so less so company should increase their profit.

Earning Per Share: E.P.S. = Profit after Tax

No. of equity shares

92

Particular
Profit after Tax No. of equity shares Ratio

(2005-06)
1,14,00,566 3,07,969 37.02

(2006-07)
1,63,31,368 4,27,259 38.22

(2007-08)
2,07,61,681 4,27,299 48.55

E.P.S.

50 45 40 35 30 Range 25 20 15 10 5 0 2005-06 2006-07 Ye ar 2007-08

Interpretation:Earning per Share is also known as Return on Equity Capital. It is a tool to find the Profitability per Share. Thus from Above information we can say That Company has continuously improved the Earning per Share and Profitability.

[C] Activity/Efficiency Turnover Ratio: Stock turnover Ratio: S.T.R. = C.O.G.S. Avg. Stock

93

Particular
C.O.G.S. Avg. Stock Ratio

(2005-06)
4,38,02,97,218 21,65,04,817 20.23times

(2006-07)
5,04,93,45,137 29,13,15,312 17.33times

(2007-08)
5,85,95,05,925 43,27,76,581.5 13.54times

S.T.R.

25 20 15 Range 10 5 0 2005-06 2006-07 Ye ar 2007-08

Interpretation:This Ratio indicates how quickly inventory is sold, High stock Turnover ratio indicates healthy liquidity and vice versa. In Sumul Dairy S.T.R. decrease after 200506.this is not a good sign. Company should try to recover their position and high their turnover.

Stock Holding Period: Stock Holding Period = 365 days S.T.R. Particular
S.T.R. Stock holding period

(2005-06)
20.23 18days

(2006-07)
17.33 21days

(2007-08)
13.54 27days

94

S.H.P.

30 25 20 Range 15 10 5 0 2005-06 2006-07 Year 2007-08

Interpretation: Stock holding period shows the time duration between the stocks produced and sold. There is healthy relationship between Stock holding period and stock Turnover Ratio. Here stock holding period of inventory is also increase.

Debtor Turnover Ratio: D.T.R = Net sales Avg. Debtors Particular


Net sales Avg. Debtors Ratio

(2005-06)
5,21,72,76,469 17,60,77,750.5 29.63times

(2006-07)
6,06,85,26,718 19,42,20,627 31.24times

(2007-08)
6,99,84,77,872 19,12,96,480 36.58times

95

D.T.R.

40 35 30 25 Range 20 15 10 5 0 2005-06 2006-07 Year 2007-08

Interpretation: The ratio measures how rapidly debts are collected. A high ratio is indicative of shorter time lag between credit sales and cash collection. A low ratio shows that debts are not been collected rapidly. Here in Sumul Debtors Turnover has increased in continuous on given period. This signifies that there has been an decrease in the debt collection period leading to greater utilization of working capital.

Debtors Collection Period: D.C.P. = 365 Days D.T.R. Particular


D.T.R. D.C.P

(2005-06)
29.63 12.32days

(2006-07)
31.24 11.68days

(2007-08)
36.58 10days

96

D.C.P.

14 12 10 Range 8 6 4 2 0 2005-06 2006-07 Year 2007-08

Interpretation: There is a relationship between debtor turnover ratio and debtor collection period. As D.T.R. increase so the collection period of debt decrease.

Creditors Turnover Ratio: C.T.R = Net Purchase Avg. Creditors Particular


Net Purchase Avg. Creditors Ratio

(2005-06)
4,41,62,92,274 11,44,95,664.5 38.57times

(2006-07)
5,16,29,71,071 12,43,68,604 41.51times

(2007-08)
6,02,88,02,530 9,81,08,795.5 61.45times

97

C.T.R.

70 60 50 Range 40 30 20 10 0 2005-06 2006-07 Year 2007-08

Interpretation: Creditors Turnover ratio measures how rapidly debts are been paid off. A low turnover ratio shows reflects liberal credit terms granted by suppliers, while a high ratio shows that accounts are to be settled rapidly. Thus, it is an important tool of analysis as a firm can reduce its requirement of current assets by relying on suppliers credit. In our case a credit turnover ratio continuously increases.

Creditors Payment Period: C.P.P. = 365 Days C.T.R. Particular


C.T.R. Ratio

(2005-06)
38.57 9.46days

(2006-07)
41.51 8.79days

(2007-08)
61.45 5.94days

98

C.P.P.

10 8 Range 6 4 2 0 2005-06 2006-07 Year 2007-08

Interpretation: As creditor turnover ratio increases its creditors payment period decreases. Sumul has decrease its credit period, it takes continuously less period for payment to their suppliers.

Total asset Turnover Ratio: T.A.T.R. = Sales Total assets Particular


Sales Total assets Ratio

(2005-06)
5217276469 1317037858 3.96

(2006-07)
6068526718 1486385356 4.08

(2007-08)
6998477872 1991902800 3.51

99

T.A.T.R.

4.1 4 3.9 3.8 Range 3.7 3.6 3.5 3.4 3.3 3.2 2005-06 2006-07 Year 2007-08

Interpretation: Total Assets Turnover ratio measures the efficiency of a firm in managing and utilizing its assets. The higher the ratio the more efficient is the management in utilization of the assets, while a low ratio is indicative of under utilization of available resources and presence of idle capacity. In our case T.F.A.T.R. fluctuate every year. The firm should steadily increase their total assets.

Total Fixed assets Turnover Ratio: T.F.A.T.R. = Sales Net F.A.. Particular
Sales Net F.A. Ratio

(2005-06)
5217276469 268976860 19.39

(2006-07)
6068526718 298323479 20.34

(2007-08)
6998477872 374801750 18.67

100

T.F.A.T.R.

20.5 20 19.5 Range 19 18.5 18 17.5 2005-06 2006-07 Year 2007-08

Interpretation: This ratio represents the value of fixed assets against the sales in a particular year. The standard fixed turnover ratio is 5 times. A high ratio indicates better utilization of fixed assets. A low ratio indicates under utilization of fixed assets. Here it is interpreted that ratio is high so company better utilized their fixed assets.

[D] Capital-Structure Ratio: Debt-equity Ratio; D.E.R. = Long-term Debt


101

Shareholders Fund Particular


Long-term Debt Shareholders Fund Ratio

(2005-06)
2,51,89,543 16,15,93,893 0.16

(2006-07)
2,94,01,716 18,00,21,925 0.16

(2007-08)
3,21,21,063 19,31,11,624 0.16

D.E.R.

0.16 0.14 0.12 0.1 Range 0.08 0.06 0.04 0.02 0 2005-06 2006-07 Ye ar 2007-08

Interpretation: Relationship between borrowed funds and owners is shown by the debt equity ratio. The ratio indicates the relative proportion of debt and equity in financing the assets of the firm. In this company, the company have same debt instrument in all year. Almost less than half debt instrument of fund employed.

Proprietors Ratio: Proprietors Ratio = Proprietors Fund Total Assets Particular


Proprietors Fund

(2005-06)
16,15,93,893

(2006-07)
18,00,21,925

(2007-08)
19,31,11,624 102

Total Assets Ratio

1,31,70,37,858 0.12

1,48,63,85,356 0.12

1,99,19,02,800 0.09

Proprietors Ratio

0.12 0.1 0.08 Range 0.06 0.04 0.02 0 2005-06 2006-07 Year 2007-08

Interpretation: This ratio establishes the relationship between the proprietors fund and total assets. Higher the proprietary ratio stronger the financial position and vice-versa. A ratio of 0.5:1 is considered ideal. Here the company proprietors ratio is very less they should increase the ratio.

[E] Expenses Ratio: Cost of Goods Sold Ratio: C.O.G.S. = C.O.G.S. X 100 Net Sale Particular C.O.G.S. (2005-06) 4,38,02,97,218 (2006-07) 5,04,93,45,137 (2007-08) 5,85,95,05,925
103

Net Sales Ratio

5,21,72,76,469 83.96%

6,06,85,26,718 83.21%

6,99,84,77,872 83.73%

C.O.G.S.Ratio

84 83.8 83.6 Range 83.4 83.2 83 82.8 2005-06 2006-07 Year 2007-08

Interpretation: The expenses ratio is very important for analyzing the profitability of a firm. It is proportion of selling expenses in relation to net sales is an expense ratio. As a working proposition, a low ratio is favorable, while a high one is unfavorable.

RATIO ANALYSIS OF AMUL DAIRY: [A] Liquidity Ratio: Current Ratio C.R. = Current Assets Current Liabilities Particular
Current assets

(2005-06)
18990.94

(2006-07)
19874.21

(2007-08)
28995.9 104

Current liabilities Ratio

9460.79 2:12

12106.54 1.64:1

13892.01 1.21:1

Current Ratio

2.5 2 Range 1.5 1 0.5 0 2005-06 2006-07 Year 2007-08

Liquid ratio: L.R. = Liquid assets Liquid liability Particular


Liquid Assets Liquid Liabilities Ratio

(2005-06)
9319.68 9460.79 0.96:1

(2006-07)
10533.65 11432.71 0.86:1

(2007-08)
12952.44 13572.51 0.54:1

105

Liquidity Ratio

1 0.9 0.8 0.7 0.6 Range 0.5 0.4 0.3 0.2 0.1 0 2005-06 2006-07 Year 2007-08

[B] Profitability Ratio: Gross Profit Ratio: G.P. Ratio= G.P X 100

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Sales G.P. = Sales C.O.G.S Particular


Gross Profit Sales Ratio

(2005-06)
13946.75 70206.23 19.87

(2006-07)
15869.49 81631.69 19.44

(2007-08)
19005.32 107187.29 17.73

G.P.R.

20 19.5 19 Range 18.5 18 17.5 17 16.5 2005-06 2006-07 Year 2007-08

Net Profit Ratio: N.P.R = Net Profit X 100 Sales

107

Particular
Net Profit Sales Ratio

(2005-06)
323.74 70206.23 0.46%

(2006-07)
411.50 81631.69 0.50%

(2007-08)
451.51 107187.29 0.42%

N.P.R.

0.5 0.48 0.46 Range 0.44 0.42 0.4 0.38 2005-06 2006-07 Year 2007-08

Earning Per Share: E.P.S. = Profit after Tax

No. of equity shares Particular (2005-06) (2006-07) (2007-08)


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Profit after Tax No. of Equity Share E.P.S.

323.74 15.99 20.25

411.50 19.80 20.78

451.51 22.29 20.26

E.P.S.

20.8 20.7 20.6 20.5 20.4 Range 20.3 20.2 20.1 20 19.9 2005-06 2006-07 Year 2007-08

[C] Activity/Efficiency Turnover Ratio: Stock turnover Ratio: S.T.R. = C.O.G.S. Avg. Stock

109

Particular
C.O.G.S. Ave. Stock Ratio

(2005-06)
56259.48 7199.005 7.81

(2006-07)
65762.20 7471.21 8.8

(2007-08)
88181.97 10214.83 8.63

S.T.R.

8.8 8.6 8.4 8.2 Range 8 7.8 7.6 7.4 7.2 2005-06 2006-07 Year 2007-08

Stock Holding Period: Stock Holding Period = 365 days S.T.R.

110

Particular
S.T.R. Stock Holding Period

(2005-06)
7.81 38

(2006-07)
8.8 41.48

(2007-08)
8.63 42.29

S.H.P.

43 42 41 40 Range 39 38 37 36 35 2005-06 2006-07 Year 2007-08

Debtor Turnover Ratio: D.T.R = Net sales Avg. Debtors Particular


Net Sales Avg. Debtor

(2005-06)
70206.23 7390.56

(2006-07)
81631.69 6388.23

(2007-08)
107187.29 8863.31 111

Ratio

9.14

12.07

14.06

D.T.R.

16 14 12 10 Range 8 6 4 2 0 2005-06 2006-07 Year 2007-08

Debtors Collection Period: D.C.P. = 365 Days D.T.R. Particular


D.T.R. D. C. P.

(2005-06)
9.5 39.93

(2006-07)
12.78 30.24

(2007-08)
12.09 25.96

112

D.C.P.

40 35 30 25 Range 20 15 10 5 0 2005-06 2006-07 Year 2007-08

Creditors Turnover Ratio: C.T.R = Net Purchase Avg. Creditors

Particular
Net Purchase Avg. Creditors Ratio

(2005-06)
46502.01 7385.76 7.09

(2006-07)
64035.16 11052 6.54

(2007-08)
93690.87 13113.45 7.61

113

C.T.R.

7.8 7.6 7.4 7.2 Range 7 6.8 6.6 6.4 6.2 6 2005-06 2006-07 Year 2007-08

Creditors Payment Period: C.P.P. = 365 Days C.T.R.

Particular
C.T.R. C.P.P.

(2005-06)
6.30 51.48

(2006-07)
5.79 55.81

(2007-08)
7.14 47.96

114

C.P.P.

56 54 52 Range 50 48 46 44 2005-06 2006-07 Year 2007-08

Total asset Turnover Ratio: T.A.T.R. = Sales. Total assets Particular


Sales Total Assets Ratio

(2005-06)
70206.23 24473.18 2.86

(2006-07)
81631.69 25761.82 3.70

(2007-08)
107187.29 35864.51 2.99

115

T.A.T.R.

4 3.5 3 2.5 Range 2 1.5 1 0.5 0 2005-06 2006-07 Year 2007-08

Total Fixed assets Turnover Ratio: T.F.A.T.R. = Sales Net F.A. Particular
Sales Net F.A. Ratio

(2005-06)
70206.23 4968.66 14.13

(2006-07)
81631.69 5371.69 15.20

(2007-08)
107187.29 6122.97 17.51

116

F.A.T.R.

18 16 14 12 10 Range 8 6 4 2 0 2005-06 2006-07 Year 2007-08

[D] Capital-Structure Ratio: Proprietors Ratio: Proprietors Ratio = Proprietors Fund Total Assets Particular
Propri. Fund Total Assets Ratio

(2005-06)
3754.41 24473.18 0.15

(2006-07)
4221.59 25761.82 0.16

(2007-08)
4591.36 35864.51 0.12

117

Proprietors Ratio

0.16 0.14 0.12 0.1 Range 0.08 0.06 0.04 0.02 0 2005-06 2006-07 Year 2007-08

[E] Expenses Ratio: Cost of Goods Sold Ratio: C.O.G.S. = C.O.G.S. X 100 Net Sales Particular
C.O.G.S. Net Sales Ratio

(2005-06)
56259.48 70206.23 80.13

(2006-07)
65762.20 81631.69 80.56

(2007-08)
88181.97 107187.29 82.27

118

C.O.G.S.Ratio

82.5 82 81.5 Range 81 80.5 80 79.5 79 2005-06 2006-07 Year 2007-08

Comparison of Sumul Dairy & Amul Dairy


2005-06 SUMUL AMUL 1.11:1 2:12:1 0.81:1 16.04 0.22 37.02 20.23 18day 29.63 12.32day 38.57 9.46day 3.96 19.39 0.12 0.96:1 19.87 0.46 20.25 7.81 46.83day 9.14 39.93day 7.09 51.48day 2.85 14.13 0.15 2006-07 SUMUL AMUL 1.24:1 1.64:1 0.83:1 16.79 0.27 38.22 17.33 21day 31.24 11.68day 41.51 8.79day 4.08 20.34 0.12 0.87:1 19.44 0.50 20.78 8.8 41.48day 12.07 30.24day 6.54 55.81day 3.70 15.20 0.16 2007-08 SUMUL AMUL 1.101 1.21:1 0.72:1 16.27 0.30 48.55 13.54 27day 36.58 10day 61.45 5.94day 3.51 18.67 0.09 0.54:1 17.73 0.42 20.26 8.63 42.29day 14.06 25.96day 7.61 47.96day 2.99 17.51 0.12

Ratio
Current Ratio Liquid Ratio G.P. Ratio N.P. Ratio E.P.S. S.T.R. S.H.P. D.T.R. D.C.P. C.T.R. C.P.P. T.A.T.R. T.F.A.T.R. Prop. Ratio

119

C.O.G.S.R.

83.96

80.13

83.21

80.56

83.73

82.27

Interpretation:
Current ratio of Amul is 2.1:1 and Sumul is 1.11 in the year 2005-06. This shows that Amul has more Current Assets to meet its Current liabilities. In 2006-07 Current Ratio of Amul is 1.64 and Sumul is 1.24 and in 2007-08 Current Ratio of Amul is 1.21 and Sumul is 1.10 which shows that Sumul has increased its current assets to meet its current liabilities and compete with Amul. Liquid Ratio of Amul is 0.96:1 and Sumul is 0.81:1 in the year 2005-06.and Liquid Ratio of Amul in 2006-07 is 0.87:1 and Sumul is 0.83:1, In 2007-08 Ratio of Amul is 0.54:1 and Sumul is 0.72:1. This shows that in Amul and Sumul both Stocks is declining but it is more declining in Amul as compared to Sumul. Gross Profit Ratio of Amul is 19.87 and Sumul is 16.04 in the year 2005-06 and G.P.R. of Amul is 19.44 and Sumul is 16.79, In 2007-08 G.P.R. of Amul is 17.73 and Sumul is 16.27. This shows that Amul is earning more profit than Sumul. Net Profit Ratio of Amul in 2005-06 is 0.46 and Sumul 0.22, in the year 2006-07 N.P.R. of Amul is 0.50 and Sumul is 0.27, In 2007-08 N.P.R. is 0.42 and Sumul is 0.30. Which shows that N.P.R. of Amul is more than Sumul but Sumul is

120

continuously increasing its Net Profit every year while in case of Amul there was declined Net Profit in last year. Stock Turnover Ratio of Amul is 2005-06 is 7.81 and Stock Holding Period is 46.83days and Sumul is 20.23 and 18 days, and S.T.R. and S.H.P. of Amul is 8.8 and 41.48days and Sumul is 17.33 and 21 days in the year 2006-07, in the year 2007-08 S.T.R. of Amul is 8.63 and S.H.P.42.29. Here Amul Sales more than Sumul so its Stock Turnover Ratio and Stock Holding Period is increased as compared to Sumul but In the year 2005-06 Amul S.T.R. become less and S.H.P. increase than Sumul.

Debtor Turnover Ratio of Amul is 9.14 and Debtor Conversion Period is 39.93day and Sumul is 29.63,12.32days respectively, in the year 2005-06, In 2006-07 D.T.R. of Amul is 8.8 and D.C..P. 41.48day, and Sumul is 17.33 and 21day. and In the year 2007-08 of Amul is D.T.R. and D.C.P. 14.06 and 25.96days respectively. And in Sumul D.T.R. is 36.58 and D.C.P. 10day. This means the credit period given to the debtor is more by Amul than Sumul. Creditor Turnover Ratio and Creditor payment period of Amul in the year 2005-06 is 7.09 and 41.48days respectively and Sumul is 38.57 and 9.46days. In the year 2006-07 C.T.R. and C.H.P. of Amul is 6.54 and 55.81days and Sumul is 41.51 and 8.79days. In the year 2007-08C.T.R. is7.61 and C.H.P. is 47.96day in Amul while in Sumul C.T.R. is 61.45 and C.H.P. 5.94 But here in Amul they takes more time to pay their creditors which is better then Sumul. Total Asset Turnover Ratio of Amul is less than Sumul because T.F.A.T.R. is less In Amul because The value of fixed assets is less against the value of sales, while The value of fixed assets is also increasing against its value of sales in Sumul. Proprietary ratio indicates the proportion of total assets finance by owners. 121

Here in both Company Proprietors Ratio is very less.

CASH MANAGEMENT:
Cash management is one of the key area of working capital management. Apart from the fact that it is the most liquid currency assets, cash is the common denominator to which all the current assets be reduced because the other major liquid assets that is receivables and inventory get converted into cash. This underlines the significance of cash management. Cash in the important current asset for the operations of business. Cash is the basic input needed to keep the business running on a continuous basis. The firm should keep sufficient cash. Cash shortage will disturb the firms manufacturing operations while excessive cash will simply remain idle, without contributing any thing towards the firms profitability. Thus the major function of the Finance manager is to maintain sound cash position. Cash is the money which the firm can utilize immediately without any restriction. Cash management is concerned with the management of :Cash flow into and out of the firm. Cash flow within the firm. Cash balance held by the firm at a point of time by financing deficit or investing surplus cash.

MOTIVES FOR HOLDING CASH


The firms need to hold cash may be attributed to following three motives:

122

Transaction Motive
The transaction motive requires a firm to hold cash to conduct its business in the ordinary course. The firm needs cash primarily to make payments for Purchases, wages and salaries, other operating expenses, taxes, dividends etc. Usually, the firm will purchase securities whose maturity corresponds with some anticipated payments, such as dividends, or taxes in the future. Transaction motive mainly refers to holding cash to meet anticipated payments whose timing is not perfectly matched with cash receipts.

Precautionary motive
The precautionary motive is the need to hold cash to meet contingencies in the future. The precautionary amount of cash depends upon the predictability of cash flows. If cash flows can be predicted with accuracy, less cash will be maintained for emergency. The amount of precautionary cash also depends upon the firms ability to borrow at short notice when the need arises. Stronger the ability of the firm to borrow at short notice less the need for precautionary balance. The precautionary balance may be kept in cash and marketable securities. Precautionary balance should be held more in high liquid and lowrisk marketable securities and less in cash.

Speculative motive
The speculative motive relates to the holding of cash for investing in profit-making opportunities as and when they arise. The opportunity to make profit may arise when the security prices change. The firm will hold cash when it is expected that interest rates will rise and security prices will fall. Securities can be purchased when the interest rate is expected to fall. The firm may also speculate on materials price. If it is expected that

123

materials prices will fall, the firm can postpone materials purchasing and make purchase in future when price actually falls.

Cash Management of Sumul Dairy


SUMUL DIST.CO-OP.MILK PRODUCERS UNION LTD. Do the cash planning in very effective way. They prepare a Cash Budget from where cash comes and where it goes and how much cash they earn from Milk and how much from other Milk Products. And their total expenditure. Usually Sumul does cash business they collect their milk money from distributors and other sellers in a day. And paid milk money to farmers or others from whom they collect the milk within five days. Sumul puts very small amount of cash on hand. The large amount of money they put in Banks (Co-operative Bank, Nationalized Bank) They put their money as a Call Deposits so they can earn interest on it. Sumul does their major transaction (expenditure) by Bank Cheque.

Sources of Cash inflows of Sumul:


Milk Sale Milk Products Sale. Other Income.

Sources of Cash Outflows of Sumul:


Operating outflows: Cash purchases, Payments of payables, advances to suppliers, wages and salaries and other operating expenses. Capital expenditures, Contractual payments: repayment of loan and interest and tax payments, Discretionary payments: ordinary dividend.

124

From where rupee comes?


0.01 0.06 0.16 milk sales product sales closing stock miscellenious income 0.77

0.02 0.02 0.03 0.02 0.03

where rupee gone?


0.01 milk purchase packing expense salary transportation charge R&D electricity expense 0.83 distribution

Findings & Suggestion

In Sumul Dairy their Current Assets over liabilities is less. So they should increase their Current Assets. For reaching at the position of industrial leader company should increase their total sales, as from the balance sheet it is shows that Company is increasing its sales day to day. Being in Co-operative sector and whole objective is the welfare of the society , and by satisfying there objective Sumul is earning profit in increasing trend..

125

Here it is shows that Debtor payment period is less than Creditors Payment Period so it is not good company should collect their money first and then pay to their creditors. The trend of progress is consistent in every aspect. So we can say that the financial performance of Sumul Dairy is good It Slowly but continuously increase.

Bibliography:
Website www.sumuldairy.com www.google.com Annual Report of Sumul Dairy Books Human Resource Management K. Aswathapa A/C for Managers M.E. Thukaram Rao Financial Management I.M. Pandey

126

Annexure:- (SUMUL DAIRY)


EXPENDITURE
To Opening stock To Purchase & other exp. To Transport society To Animal husbandry & ext. To Processing laboratory etc. To Packing expenses To Power fuel water To Salaries & wages To Provident fund & other amenities To Repairs & Maintenance To Distribution exp. To Stationary postage & Telephone exp.

Rs. (2005-06) Rs.( 2006-07) Rs.(2007-08)


198507289 4416292274 100239473 37030255 47837999 212120058 101911614 116608628 31298619 44598702 76825803 4669900 234502345 5162971071 124357331 105301246 49813691 241741124 108301903 151158983 38872509 54015263 84089489 4057051 348128279 6028802530 125979623 134047192 54165024 246250373 115868268 164379705 49728353 55161657 91866472 4624571

127

To insurance Legal Fees etc. To vehicle tax Municipal Tax To continuous & Concurrent Audit Fees To Sundry Expenses To Interest & Bank Commission To Depreciation To Provision for Income tax To Pro. for Bad & Doubtful Debts To Net Profit TOTAL

7871726 1981236 5000000 2870934 13806463 52132597 3000000 8500 11400566 5486012636

7770586 1559975 5956476 3835379 20717824 52128608 4600000 16331368 6472082222

13486896 1646026 6152977 4647881 21530155 64091651 6000000 20761681 7557319314

INCOME
By sales By Sundry Income By Closing Stock Total

Rs.(2005-06)
5217276469 34233822 234502345 5486012636

Rs.(2006-07)
6068526718 55427225 348128279 6472082222

Rs.(2007-08)
6998477872 41416558 517424884 7557319314

128

LIABILITIES
Authorized Share Capital: Share Capital (Issued & Fully Paid Up) Debenture: Reserve Fund & Other Fund: Loans: National Dairy Dev. Board (Operation Flood) Gujarat Govt. Revolving Fund Cattle Loan Mini Community Dairy Loan/grant Current liabilities & provision: Due To Societies Saving Societies Fixed Deposits Deposits Other Liabilities Provision for Income Tax Creditors Creditors(purchase) Creditors(Misc.) Profit & Loss A/C Total

Rs.(2005-06)
50000000 30796900 454500 130796993 12715646 900000 11573897 520289286 192256233 2580862 77896534 9772895 26050000 134716013 131523258 23314275 11400566 1317037858

Rs.(2006-07)
50000000 42725900 454500 137296025 9379790 900000 19121926 846960 504569566 309502901 979932 139256792 8187765 30650627 126936360 117213950 22030994 16331368 1486385356

Rs.(2007-08)
50000000 42729900 454500 150381724 6043934 26077129 400083562 656980709 292669691 956131 101055307 8207259 36650000 140533731 79003641 29313901 20761681 1991902800

129

ASSETS
Assets: (As Cost Less Depre.) (As per Schedule 1) Investments : Share (At Face Value) Fixed Deposits (Short Term) Stock : Milk Stock Milk Product Stock (At Cost) Raw Material Cattle Feeds General Stores Vet. Medicine Stock Advance & Other Assets : Business Asset Central Excise Income Tax Advance Tax Advance Tax VAT Tax Input (Receivable) Receivable Deposit Cash & Banks : Nationalized Bank Co-operative Bank Cash on Hand Call Deposit Total

Rs.(2005-06)
268976860

Rs.(2006-07)
298323479

Rs.(2007-08)
374801750

47744132 2800551 16262141 183031859 35208345 28528612 3558703 184341425 54711 50844777 3000000 18572527 35286699 143676014 150502 295000000 1317037858

47744132 2809523 18406337 261471575 68250567 25430905 3623116 204099829 54711 54026404 4600000 6810827 20985489 32663158 86538181 547123 350000000 1486385356

49744132 2809523 24294590 411874033 81256261 21074982 6201410 178493131 54711 54026404 10064910 22306593 70781810 169860553 441007 513817000 1991902800

AMUL DAIRY BALANCE SHEETS (In Lakhs) Dr. TRADING ACOUNT FOR THE YEAR ENDING 2007-08 Cr. AMOUNT
06952.79 77965.56 15725.31 01015.17 19005.32 120664.15

PARTICULAR
Opening Stock Purchase of Milk Purchase of Raw Mat. Freight Gross Profit TOTAL

PARTICULAR
Sales Closing Stock

AMOUNT
107187.29 013476.86 130

TOTAL

120664.15

Dr. PROFIT & LOSS A/C FOR THE YEAR ENDING 07-08 PARTICULAR
Research & Ext Exp Packaging Expenses Processing Expenses Power & Fuel Salary Staff P.F & Gratuity Repair Expenses Marketing Expenses Postage Insurance Premium Rent Administrative Exp. Audit Fees Interest Depreciation Provision for F.B.T Prior Period Expenses Net Profit TOTAL

Cr. AMOUNT
19005.32 260.17 76.56 754.02 1.61

AMOUNT
1182.62 8363.90 1089.17 3807.86 1676.98 480.10 1063.55 109.99 56.14 60.52 43.62 166.77 99.66 814.81 573.77 9.00 47.71 451.51 20097.68

PARTICULAR
Gross Profit Interest Dividend Other Income Prior Period Income

TOTAL

20097.68

131

BALANCE SHEET AS ON 31ST MARCH 2007-08


LIABILITIES
Share Capital(Auth) Paid up capital Reserves Fund Grants Long term loan Debentures Fix Deposits Short Term Loans CUR. LIABILITIES Deposits Due to Societies O/S Against Exp O/S Against Pur. Sundry Creditors Provisions Net Profit TOTAL

AMOUNT
4000.00 2229.18 2362.18 1554.28 0501.63 1039.51 4333.81 9500.00 168.24 7223.31 1423.59 4298.31 459.06 451.51 451.51 35864.51

ASSETS
Fixed Assets Investment Capital W.I.P Stock ADVANCES Deposits Due From Soc. Advances Trade Debtors Sundry Debtors Income Tax Deposit Bank Balance Deferred Rev.Exp.

AMOUNT
6122.97 514.83 125.75 15737.88 214.05 0.11 777.80 8458.69 404.62 91.53 3311.22 105.06

TOTAL

35864.51

132

Dr.

TRADING ACOUNT FOR THE YEAR ENDING 2006-07 Cr. AMOUNT


07989.62 52312.16 11718.00 00695.21 15869.49 120664.15

PARTICULAR
Opening Stock Purchase of Milk Purchase of Raw Mat. Freight Gross Profit TOTAL

PARTICULAR
Sales Closing Stock

AMOUNT
81631.69 6952.79

TOTAL

88584.48

Dr. PROFIT & LOSS A/C FOR THE YEAR ENDING 06-07 PARTICULAR
Research & Ext Exp Packaging Expenses Processing Expenses Power & Fuel Salary Staff P.F & Gratuity Repair Expenses Marketing Expenses Postage Insurance Premium Rent Administrative Exp. Audit Fees Interest Depreciation Provision Prior Period Expenses Net Profit TOTAL

Cr. AMOUNT
15869.49 251.33 76.56 433.20 11.50

AMOUNT
954.67 711.64 6438.42 2882.36 1370.14 470.36 852.96 106.17 56.51 84.71 41.44 92.87 133.51 705.14 669.19 632.66 27.83 411.50 16642.08

PARTICULAR
Gross Profit Interest Dividend Other Income Prior Period Income

TOTAL

16642.08

133

BALANCE SHEET AS ON 31ST MARCH 2006-07

LIABILITIES
Share Capital(Auth) Paid up capital Reserves Fund Grants Long term loan Debentures Fix Deposits Short Term Loans CUR. LIABILITIES Deposits Due to Societies O/S Against Exp O/S Against Pur. Sundry Creditors Provisions Net Profit TOTAL

AMOUNT
4000.00 1980.00 2241.59 1658.48 2530.00 1145.30 3688.41 380.71 6264.11 1076.90 3373.85 337.14 673.83 411.50 25761.82

ASSETS
Fixed Assets Investment Capital W.I.P Stock ADVANCES Deposits Due From Soc. Advances Trade Debtors Sundry Debtors Income Tax Deposit Bank Balance Deferred Rev.Exp.

AMOUNT
5371.69 432.83 9077.90 169.25 0.06 417.25 6015.61 372.62 93.41 3728.11 83.09

TOTAL

25761.82

134

Dr.

TRADING ACOUNT FOR THE YEAR ENDING 2005-06 Cr. AMOUNT


06408.39 46502.01 10872.93 465.77 13946.75 78195.85

PARTICULAR
Opening Stock Purchase of Milk Purchase of Raw Mat. Freight Gross Profit TOTAL

PARTICULAR
Sales Closing Stock

AMOUNT
70206.23 7989.62

TOTAL

78195.85

Dr. PROFIT & LOSS A/C FOR THE YEAR ENDING 05-06 PARTICULAR
Research & Ext Exp Packaging Expenses Processing Expenses Power & Fuel Salary Staff P.F & Gratuity Repair Expenses Marketing Expenses Postage Insurance Premium Rent Administrative Exp. Audit Fees Interest Depreciation Provision Prior Period Expenses Net Profit TOTAL

Cr. AMOUNT
13946.75 104.02 64.43 487.60 34.77

AMOUNT
727.41 570.19 5267.93 2564.09 1378.63 481.82 736.24 97.62 58.10 76.10 47.01 82.96 127.83 789.23 1160.69 61.66 86.32 323.74 14637.57

PARTICULAR
Gross Profit Interest Dividend Other Income Prior Period Income

TOTAL

14637.57

135

BALANCE SHEET AS ON 31ST MARCH 2005-06


LIABILITIES
Share Capital(Auth) Paid up capital Reserves Fund Grants Long term loan Debentures Fix Deposits Short Term Loans CUR. LIABILITIES Deposits Due to Societies O/S Against Exp O/S Against Pur. Sundry Creditors Provisions Net Profit TOTAL

AMOUNT
2000.00 1599.81 2154.60 1839.60 4790.00 1162.93 3263.70 500.00 347.39 4160.04 955.75 2989.69 438.72 69.20 323.74 24595.17

ASSETS
Fixed Assets Investment Capital W.I.P Stock ADVANCES Deposits Due From Soc. Advances Trade Debtors Sundry Debtors Income Tax Deposit Bank Balance Deferred Rev.Exp.

AMOUNT
4968.66 513.58 51.09 9671.26 166.96 0.01 552.26 6764.65 365.61 74.50 1395.69 70.90

TOTAL

24595.17

136

137

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