A PROJECT REPORT

ON
COMPARATIVE BALANCE SHEET OF VERKA MILK PLANT
Submitted by
ANKUSH DATTA
(Reg. No. - 90752234933)
A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD
OF THE DEGREE
Of
MASTER OF BUSINESS ADMINISTRATION
under the guidence of
lect. NEELKASHI
Submitted to
PUNEET SHARMA
SRI SAI INSTITUTE OF ENGINEERING & TECHNOLOGY

PUNJAB TECHNICAL UNIVERSITY, JALANDHAR (PB)

JUNE-JULY 2010

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

DECLARATION

I Ankush datta, hereby declare that the work presented herein is

genuine work done originally by me and has not been published or
submitted elsewhere for the requirement of a degree programme. Any
literature, data or works done by others and cited within this project
report has been given due acknowledgement and listed in the
reference section.

Ankush datta
Roll No: -90752234933
Date: 15th June 2010

CERTIFICATE
This is to certify that this dissertation entitled COMPARATIVE
BALANCE SHEET is the result of the research work carried out by
ANKUSH DATTA in verka milk plant ,gurdaspur.

SIGNATURE
HEAD OF DEPARTMENT

PREFACE

PREFACE
Education is not filling of pail, but the lighting of a fire.
Training is the ability to listen to almost anything without losing your
temper or your self confidence.
Practical training imbibes an integral part of management studies. One
cannot merely upon the theoretical knowledge. It is to be coupled with
practical for it to be a fruitful classroom lectures make the fundamental
concept of management clear. They also facilitate the learning of
practical things. However class lectures must be correlated with
practical in the company has a significant role to play in the subject in
business management. To develop management and administrative
skill in future managers have to enhance their analytical skills, it is
necessary that they combine their classroom learning with the
knowledge of real business environment.
After liberalization myself Indian economy scene I really a buzz with
activity. Lots and lots of multinational companies are coming in with
their technical expertise and proven management concepts. Industrial
activity in Indian has become a thing to watch and I really wanted to
be of it and it was essential for me being a management student.
For this reason SRI SAI COLLEGE OF ENGINEERING AND TECHNOLOGY
BADHANI designed a scheme under which student of Master of
Business Administration go for Summer Training between second and
third semester.
During this period, I have written a report about knowledge,
experienced I gained, and findings I made in course of the training.
This report has been written in simple language specifying the
organizational set up and management procedure of Verka Milk Plant,
Gurdaspur and along the comparative balance sheet of the Milk Plant.

It is difficult to elaborate everything which learned during the training

however, I have endeavored too many, comprehensive picture of
details about working in the following pages. I have accumulated the
desired information through personal observation, study of documents
and discussions
Any omission or error is deeply regretted.

AKNOWLEDGEMENT

ACKNOWLEDGMENT

In a dynamic and complex industrial and marketing environment,

theoretical concepts and classroom, teaching is not enough to impart
professional knowledge and skills to the future managers. In this
regard, I feel quite indebted to Management Department of SRI SAI
COLLEGE OF ENGINEERING AND TECHNOLOGY BADHANI for providing
me with a tremendous skills and getting me exposed to the
philosophies and psychologies behind the complex corporate world and
marketing environment.
It is quite heartening to note about the successful completion of my
training and project report. But without the effort - support and cooperation of various persons, this result may not have been possible.
So, I feel that this report would be incomplete without thanking the
people who helped me in completion of the training and project report.
First of all, I wish to express my sincere thanks to Mr. P.B.Singh general
manager for allowing me to undergo my training.
I am heartily thankful to R.N.Mahant manager of Accounts for their
sincere and devoted guidance during the training. I would also like to
thank all the employees of Accounts Department and all other
Departments to complete this report.

Last but not the least I thank my parents, friends and kith and kins for
their support during my research work, as without their cooperation
I would not have been able to do any research so efficiently and
effectively.

DEPARTMENT OF MANAGEMENT
S.S.C.E.T.COLLEGE OF BADHANI, PATHANKOT
(SESSION2009-2011)
INDEX:S.No
1

Chapter
Introduction of the project
Objective

Need,

Page no.
11-16

Scope

&

Methodology
Industry Profile
Dairy Industry in India

Leading Brands

Lead Players

Dairy Whiteners

Major Players

17-33

Company Profile
- History
- Location
- Capacity of Plant
34-41

- Milk Feds Network

- Controlling Authorities
- Government Support
- Milk Procurement at Milk
- Plant Chilling Stations
- Air/Water Pollution Control
4

Punjabs Pride :
-

Milk

Ghee

Lassi

Panjiri

Kheer

42-47

Khoa
Quality Policy
48-50

Quality

6
7

Engineering
Organizational Chart.
Human Resource Development

SWOT Analysis
Strength

10

51-54
55-56

Weakness

Opportunities

57-59

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

10

60-62

63-65

11
12
13
14
15
16

Comparative Balance Sheet

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

11

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

CHAPTER 1

INTRODUCTION

12

COMPARATIVE BALANCE SHEET

A comparative balance sheet is designed to show financial differences

between several accounting periods. A balance sheet is a detailed
account of everything lost and gained financially during a certain time,
containing both physical and abstract data. A comparative balance
sheet is useful because a business can instantly compare profits and
losses

between

different

time

periods.

Most

businesses

use

comparative balance sheets to help increase profits and functionality

of a company.
Features
A comparative balance sheet will include several different types of
accounting data. First there will be the income received and money
spent. There will also be a list of credits and debits to the company. A
list of assets and liabilities is also included. All of these factors are
necessary to see what the total worth of the company is through the
balance sheet. The comparative balance sheet allows the company or
business to see at a glance how its profits differ from one year to
another. These comparative balance sheets are aligned so that
business people can see at a glance the financial differences from year
to year.
Function
A balance sheet is designed to help keep a business or company aware
of every expense and profit that it is receiving. It also allows the
company to see which times of the year are most profitable, and which
years they did the best. This knowledge is important so that the
company can adapt to the information to build the best business

13

possible. If the business did better three years ago, they can look at
that data and try to decide what it was that made them do so well that
year. Then they can change what they are doing in the present to help
boost current profits.
Benefits
The main benefit of a comparative balance sheet is that profits and
losses can be seen at a glance. It is also possible to see the increase or
decrease of assets that the business has. The company will be able to
tell what the biggest money suckers in the business are, and try to
think of ways to cut down losses in that area.
Significance
Without a comparative balance sheet, businesses would not know how
to change their strategy from year to year. All they would have to go
on would their current balance statements. This would be detrimental
to most businesses. It is very important to be able to look at past profit
information to judge how to act for the future.
Expert Insight
Most businesses and companies use comparative balance sheets. It
would be a very poor business decision not to use them. A lot of times
these comparative balance sheets are used when proposing new
additions or changes to a business. The company can go back as many
as 10 or 20 years to identify trends, and to judge if a new project is
right for the company. Comparative balance sheets are a necessity in
the business world.

14

RESEARCH METHODOLOGY

15

RESEARCH METHODOLOGY
Research refers to a search for knowledge. This research defines the
problems of retailers and perception of citizens. Research comprises
defining and redefining problems, formulating hypothesis or suggested
solutions;

collecting,

organizing

and

evaluating

data;

making

deductions and reaching conclusions; and at last carefully testing the

conclusions to determine weather they fit the formulating hypothesis.
It

presents

the research

design,

sampling

procedure,

tools

of

investigation, collection of data and the limitations of the study.

4.1 RESEARCH DESIGN
This research was descriptive and conclusion oriented research.
a) Descriptive Research:
The research was a descriptive research as it was concerned with
specific

predictions,

with

narration

of

facts

and

characteristics

concerning individuals, groups or situations.

Sampling Techniques: The sampling techniques used are convenient
technique and simple random sampling technique.

Convenient Technique: A non-probability sampling technique that

attempts to obtain a sample of convenient elements. The selection
of sampling units is left primarily to the interviewer.

16

COLLECTION OF DATA
Data is obtained from important source:
Secondary data
Secondary Data
The sources of secondary data are:1.
2.
3.
4.

Corporative magazines
Manuals of various companies
Various publications
Books, magazines of particular clubs and newspapers

17

Chapter 2

Company Profile

18

INDUSTRY PROFILE

Dairy Industry in India :India has the highest livestock population in the world with 50%
of the buffaloes and 20% of the worlds cattle population, most of
which are milch cows and milch buffaloes. Indias dairy industry is
considered as one of the most successful development programmes in
the

post-Independence

period.

In the year 2006-07the total milk production in the country was

over 94.6 million tonnes with a per capita availability of 229 gms per
day. The industry had been recording an annual growth of 4% during
the period 1993-2005, which is almost 3 times the average growth rate
of the dairy industry in the world. Milk processing in India is around
35%, of which the organized dairy industry account for 13% of the milk
produced, while the rest of the milk is either consumed at farm level,
or sold as fresh, non-pasteurized milk through unorganized channels.
Dairy Cooperatives account for the major share of processed
liquid milk marketed in the India. Milk is processed and marketed by
170 Milk Producers Cooperative Unions, which federate into 15 State
Cooperative Milk Marketing Federations. Over the years, several brands
have been created by cooperatives like Amul (GCMMF), Vijaya (AP),
Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala)
and

Gokul

(Kolhapur).

Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra,

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

19

milk surplus States. Exports of dairy products have been growing at the
rate of 25% per annum in the terms of quantity terms and 28% in
terms of value since 2001. Significant investment opportunities exist
for the manufacturing of value-added milk products like milk powder,
packaged milk, butter, ghee, cheese and ready-to-drink milk products.
India has emerged as the largest milk producing country in the
world with present level of annual milk production estimated as 94.5
million tonnes. We expect a production level of 135 million tonnes by
the year 2015. India has a large livestock population base constituting
278 million livestock including 180.5 million cattle, 82.8 million
buffaloes, 4 million sheep and 9.2 million goats. The livestock
population is projected to increase to 322 million by the year 2015. The
large livestock population is raised primarily on crop residues and
grazing in the common property including basement. The forest area,
which was a major source of grazing, is no longer available to livestock
breeders especially landless people. As a consequence, the available
feed resources fall short of the nutritional requirement. The shortfall is
estimated as 59.9 million tonnes for the green fodder and 19.9 million
tonnes for dry fodder. This shortfall is likely to increase by 2015 to 63.5
million tonnes of green fodder and 23.56 million tonnes of dry fodder.
The landless people are, therefore, likely to face severe shortage
of resources to raise cattle and other species of livestock. There is a
real danger that in the absence of resources to maintain their stock,
these under-privilege rural people may give up livestock farming. This
could be a serious setback to lakhs of rural families who derive income
as

well

as

employment

opportunities

from

livestock

sector.

India prepares to tackle the international market following Japan,

where milk consumption today, has more than trebled to 70 kg per
20

capita from a mere 20 kg in the 'sixties - the consumption of dairy

products in other Asian 'tiger' nations is also growing. As a
consequence - creating excellent export opportunities for India, as
these nations are deficient in milk by at least 3 million tonnes per year.
India, with some 27 per cent of Asia's population, accounts for more
than half of the milk output with enough growth potential to explore
foreign markets. In anticipation of the export opportunities and in view
of the post GATT scenario, India is gearing up to tackle the demands of
the

international

market.

Indian companies are preparing themselves to meet international

standards and other non-tariff barriers. Planners are taking measures
to meet the sanitary and phyto-sanitary specifications - prescribed by
Office International des Epizooties (OIE) under the auspices of the
World Trade Organization (WTO) -, which range from the quality
assurance of processed dairy products to the health status of livestock.
Leading Brands
Amul, Vijaya, Verka, Vadilal, Kraft, Britannia.
Market Growth Rates
1990-91 1996-97
1996-97 2001-02
2001-02 2006-07
2004-05 2009-10
2009-10 2014-15

18.5%
20.6%
11.7%
9.4%
7.4%

Lead Players
The lead players in processed milk products in the market are as
follows:Amul, Britannia, and others include Vijaya, Verka and Vadilal. In the
category of cheese Amul, Britannia Dabur (Le Bon) are the leading
players including others like Verka, Nandini, Vijaya and Vadilal

21

Dairy Whiteners
About 15% of the total milk output in India is estimated to be
processed in the organized dairy. The industry has maintained a high
growth profile, especially in the wake of the Operation Flood,
colloquially also termed as White Revolution, initiated in early 1980s.
Today, India produces over 85 mn tonnes of milk annually. The total
milk economy is estimated at Rs 1300 billion in terms of value.

The market for dairy whiteners (commercially know as beverage

milk powders and condensed milk) and creamers is around Rs 3,000
mn. Apart from MNCs like Nestle and companies like Britannia, the
Indian enterprises have also made perceptible progress. Names like
Amul, Sapan, Vijaya, Mohan, Parag and several others have been seen
in the marketplace with their whiteners. These are available mostly in
pouches, tetrapacks, and in the near future, may be in miniportion
cups.
Aseptically packed creamer in miniportions is widely used in the
West, but has yet to enter the Indian market in any substantial way.
Amul did make a beginning with its whitener pouches and has emerged
as a leader with a market share of 45% followed by Nestles 23%.
Aseptically packed creamer involves techniques to impart a longer
shelf life to the product. It is packed in small cups ready to be poured
into a cup of tea or coffee.

Creamer is fresh milk with increased fat

content (upto 12%) and is aseptically packed after undergoing Ultra

Heat Treatment (UHT) at 1400 C. Its introduction will affect the existing
whitener market as a natural milk product with a longer shelf life.
Britannia forayed into the dairy business as a diversification
move in 1997. Its first offering, Milkman Butter, just managed a 5%
share. The dairy business claims a 10% share in Britannia's topline.
22

The company had drawn up plans to atleast capture 5% of the overall

fresh milk market estimated by Britannia at Rs 420 bn. Extending the
product portfolio beyond cheese, dairy whitener and butter, Britannia
entered the fresh milk segment in 2001. In the dairy whitener, the
company has managed to capture a significant market share.

Nestle:Nestle India with its Everyday dairy whitener has established its
brand well. It has also entered into the market with its Nestle Pure Milk
and, of course, a product in its niche area, Nescafe Frappe. Having
earlier launched UHT milk, Nestle is concentrating on expanding its
reach. Its plans

covered

Rs 800 mn investment in its Moga (Punjab)

facility. New product segments like butter, yoghurt and flavoured

milk were also on the cards.
While Sapan characterises it as Dairy Special (instant milk mix for tea
and coffee), Vijaya is the only UHT processed milk homogenised brand
sold in the market in 200 ml and one litre tetrapack. All the rest,
Amulya, Meadow, Mohan, Parag and Shweta dairy whiteners are in the
form of powders. Mohan also markets a non-dairy whitener alongside
its dairy type product.
Since India is a major consumer of tea and coffee, it would be a very
large market if only the price was not a constraint. In addition to
domestic consumption, the whiteners/creamers find a high level of
institutional

acceptance,

especially

restaurants, airlines, hospitals

and

by railways,

nursing

homes

hotels

and

and corporate

offices. The institutional market can be tapped first, in particular, the

airlines, railways and hotels. The penetration can then be extended to
the

household

sector.

The potential for

exports, especially

to

neighboring countries and the countries in the Middle East, the Gulf
and Africa, also exist and could be exploited.
23

Dairy Whiteners / Creamers

Demand: Past & Future
Year
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2014-15

th MT
80
83
85
86
89
91
99
95
135
183
147
160
175
190
206
224
243
263
284
307
450

Lead

Players

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

Foods, Mohan Food, Modern Dairy, K Dairy
Leading

Brands

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

Gagan, White Magic, Every Day.
Market Growth Rates
1990-91 - 1996-97
1996-97 - 2001-02
2001-02 - 2006-07
2004-05 - 2009-10
2009-10 - 2014-15

3.6%
10.1%
8.7%
8.3%
8.0%

24

The main thrust of proposals is on the improvement of animal

health and adoption of sanitary and phyto-sanitary specifications (SPS)
for dairy products. Towards this end, the Technology Mission on Dairy
Development (TMDD) has initiated a wide-ranging program.

Table 1: Milk Utilisation Pattern in India, 1943-2004

Year
1943*
Milk Production (million tones)
23.5
Mil Utilisation (Percentage)
100
Liquid Milk
28.0%
Traditional Products
72.0%
Ghee/Makhan (clarified butter)
58.7%
Dahi (Yogurt-like)
5.2%
Khoya (Partially desiccated Milk
5.0%
Chhana and Paneer (unprocessed cottage 3.1%

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

cheese)
Western Products: Milk Powder, etc
Neg
Neg
*Includes Pakistan and Bangladesh
Source: Handbook on Technology of Indian Milk Products

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

The upsurge in milk production has thrown up challenges in milk

marketing. The country is blessed with an enormous domestic market
because of the following factors: Large population and its continuous
growth, low level of per capita milk consumption and hence large size
of potential, but latent demand, increasing purchasing power, which is
already in evidence, will transform the huge latent demand into real
demand. The groups of dairy products offering exciting marketing
opportunities are liquid milk itself, which accounts for a sizeable part of
the milk consumption products, in which our dairy industry already has
demonstrated considerable expertise, like milk powders, butter and
ghee. The ability to manufacture the relatively new and sophisticated

25

products like cheese and ice cream alongside the traditional products
like paneer, khoya and milk-based sweets are now being manufactured
on a large scale. Utilization pattern

Table 2: Projected demand for major milk products in the organized

sector, 1988-2009/ metric tonne
Product
Demand 1988
Ghee
100,000
Cheese
4,200
Paneer
1,000
Shrikhand
3,000
Rasgolla
1,600
Gulabjamun
3,000

Project demand 2009

200,000
15,000
16,000
5,650
6,000
5,850

As shown in the table, of the total milk produced in the country,

nearly 46 per cent is consumed as liquid milk and the balance
converted into various dairy products, such as ghee, butter, milk
powder, ice cream, cheese, condensed milk and for making various
kinds of sweetmeats having distinct regional preferences. Dairy
products an estimated 54 per cent of India's milk production is
converted into products, both traditional and Western. In this, the
share of traditional products is about 50 per cent, accounting in 2001
for a little over 42 million tonne of milk, which yields over 10 million
tonne of mithais and other related products per year. The growth
projections for their demand in the organized sector are presented in
Table above.
Commercial production of traditional products
With the increase in the availability of liquid milk and Western
dairy products, refinement in the marketing network and significant

26

improvement in per capita income, there is an increased pressure for

the restructuring of the indigenous milk product industry. Now, the
organized sector has started showing keen interest in processes and
equipment for manufacturing traditional products standardization of
products, as well as refinement in packaging and improvement in
safety and shelf life. Any innovation which can enable the organized
sector to manufacture and market indigenous milk products on an
industrial scale can have a far reaching impact on the dairy industry as
well as on the economic condition of milk producers. The market for
indigenous products far exceeds that for Western dairy products like
butter, milk powder and cheese.
A great scope exists for further expansion of the market for
indigenous milk products, provided quality and safety are ensured and
the shelf life is extended to facilitate distribution over larger areas.
Major innovations are needed in manufacturing, quality assurance,
packaging and process engineering to adapt these products to current
marketing and consumer requirements. Some commercial processes
have been developed to manufacture ghee, khoya, shrikhand and
gulabjamun, but much is required to be done.
Major Players
The dairy industry is dominated by the co-operative sector.
About 60% of the installed processing capacity is in the co-operative
sector.
The National Dairy Development Board (NDDB) is a major player in the
market with its major brand, Amul. Leading brands like Amul, Nestle,
Mother Dairy and Britannia are in the race to tap the growing market.
SmithKline Beecham Consumer Healthcare, Nestl India and
Heinz India are amongst the large MNCs that dominate the high-value

27

milk products market. Other players include Indiana Dairy Specialties,

Jagatjit Industries Ltd and various other state cooperatives.
Some dairy plants have production of mithais on a commercial
scale. Some national brands like Haldiram, Bikanervala, K C Das,
Chitales, Ganguram, Brijwasi, Agarwal Sweets etc are getting wide
acceptance because of consistent quality Encouraged by the growing
market and cashing on brand value select dairy companies are
planning major expansion plans in various cities with new brands
suited to local taste and preferences and realizing higher prices with
higher sales volumes and product safety.
The milk and dairy products segment is set for up gradation of coldstorage chains for expansion. Mother Dairy, a wholly owned subsidiary
of National Dairy Development Board plans to make strong presence in
the market of milk and milk products under the Mother Dairy brand
through retail outlets across the country in addition to its own 300
outlets with provision of cold storage and cold chains.

Production in India
Year
199192
199293
199394
1994-

Per

Production (Million Tonnes)

Capita

(gms/day)

55.7

178

58.0

182

60.6

187

63.8

194
28

Availability

95
199596
199697
199798
199899
19992000
200001
200102
200203
200304
200405*

66.2

197

69.1

202

72.1

207

75.4

213

78.3

217

80.6

220

84.4

225

86.2

230

88.1

231

90.7

229

2005-

94.6

06
Source:

220
State/UT

Animal

Husbandry Departments,

2004

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

Estimates of Milk Production - State wise

(000 tones)
State

1997-

1998-

1999-

2000-

29

2001-

2002-

2003-

2004-05 *

98

99

2000

01

02

03

04

72128

75424

78286

80607

84406

86159

88082

90715

4473

4842

5122

5521

5814

6584

6959

7252

Pradesh

43

45

46

42

42

46

46

48

Assam

719

725

667

683

682

705

727

739

Bihar

3420

3440

3454

2489

2664

2869

3180

2974

Goa

38

41

44

45

45

46

48

57

Gujarat

4913

5059

5269

5312

5862

6089

6421

6745

Haryana

4373

4527

4679

4850

4978

5124

5221

5222

Pradesh

714

724

742

761

756

773

786

870

J&K

1167

1232

1286

1321

1360

1389

1414

# 1422

Karnataka

3970

4231

4471

4599

4797

4539

3857

3917

Kerala

2343

2420

2532

2605

2718

2419

2111

2025

Pradesh

5377

5442

5519

4761

5283

5343

5388

5506

Maharashtra

5193

5609

5707

5849

6094

6238

6379

6567

Manipur

62

65

68

66

68

69

71

75

Meghalaya

59

61

62

64

66

68

69

71

Mizoram

17

20

18

14

14

15

15

16

Nagaland

46

48

48

51

57

58

63

69

Orissa

672

733

850

876

929

941

997

1283

Punjab

7165

7394

7706

7777

7932

8173

8391

8554

Rajasthan

6487

6923

7280

7455

7758

7789

8054

8310

Sikkim

35

35

35

35

37

45

48

46

Tamil Nadu

4061

4273

4586

4910

4988

4622

4752

4784

Tripura

57

76

77

77

90

79

84

86

Uttar Pradesh 12934

13618

14152

13857

14648

15288

15943

16512

West Bengal

3441

3465

3471

3515

3600

3686

3790

All India
Andhra
Pradesh
Arunachal

Himachal

Madhya

3415

30

A&N Islands

22

22

23

22

23

26

25

24

Chandigarh

43

43

42

43

43

43

44

43

D&N Haveli

Daman & Diu 1

Delhi

290

290

291

294

296

299

303

Lakshadweep 1

Pondicherry

36

37

37

37

37

40

41

Chhattisgarh -

777

795

804

812

831

Uttaranchal

1025

1066

1079

1188

1195

Jharkhand

910

940

952

954

1330

267
36

Source: Basic Animal Husbandry Statistics, 2004

* Source: Production Estimate of MILK, EGG, MEAT and WOOL of the year 2004-05
# Projected by state
Source: Indiandairyassociation.com
In addition to the above-mentioned points - there are areas where
major

thrust

is

required:

Brand image or major players needs to be projected in leading

international dairy trade fairs, particularly of those countries to which
exports are being targeted. Another step may be to encourage
technical collaboration and marketing tie-ups with leading international
dairy companies With the liberalization and open policies of the
Government and the restructuring of the economy the dairy industry is
undergoing major developments. This has brought about greater
participation of the private sector. This is also consistent with global
trends, which can hopefully lead to greater integration of Indian
dairying with the world market for milk and milk products. India is
witnessing winds of change because of improved milk availability, a
changeover to market economy, globalization and the entry of the
private sector in the dairy industry. The value addition and variety in

31

the availability of milk products are on everybody's agenda. There is a

consistent increasing demand for new products and processes. The
major reasons are an increase in disposable incomes, changes in
consumer concerns and perceptions on nutritional quality, hygiene and
safety, arrival of foreign brands, increasing popularity of satellite or
cable media and availability of new technologies and functional
ingredients. India is the world's largest milk producer in the present
scenario.
HISTORY
Amul was formally registered on December 14, 1946. The brand
Amul, sourced from the Sanskrit word Amoolya, means priceless. It was
suggested by a quality control expert in Anand. Some cite the origin as
an acronym to (Anand Milk Producers Union Limited).The Amul
revolution was started as awareness among the farmers. It grew and
matured into a protest movement that was channeled towards
economic prosperity.

Setting Up of Gujarat Cooperative Milk Marketing Federation

In 1954, Kaira District Co-operative Milk Producers Union built a
plant to convert surplus milk produced in the cold seasons into milk
powder and butter3. In 1958, a plant to manufacture cheese and one
to produce baby food were added. Subsequent years saw the addition
of more plants to produce different products. In 1973, the milk
societies/district level unions decided to set up a marketing agency to
market their products. This agency was the Gujarat Cooperative Milk
Marketing Federation (GCMMF). It was
registered as a co-operative society on 9 July 1973.

32

Nestls relationship with India dates back to 1912, when it

began trading as The Nestl Anglo-Swiss Condensed Milk Company
(Export) Limited, importing and selling finished products in the Indian
market.
After Indias independence in 1947, the economic policies of the
Indian Government emphazised the need for local production. Nestl
responded to Indias aspirations by forming a company in India and set
up its first factory in 1961 at Moga, Punjab, where the Government
wanted Nestl to develop the milk economy. Progress in Moga required
the introduction of Nestls Agricultural Services to educate, advise
and help the farmer in a variety of aspects. From increasing the milk
yield of

their cows through improved dairy farming methods, to

irrigation, scientific crop management practices and helping with the

procurement of bank loans. Nestl set up milk collection centres that
would not only ensure prompt collection and pay fair prices, but also
instil amongst the community, a confidence in the dairy business.
Progress involved the creation of prosperity on an on-going and
sustainable basis that has resulted in not just the transformation of
Moga into a prosperous and vibrant milk district today, but a thriving
hub of industrial activity, as well. For more on Nestl Agricultural
Services.

Nestl has been a partner in India's growth for over nine decades
now and has built a very special relationship of trust and commitment
with the people of India. The Company's activities in India have
facilitated direct and indirect employment and provides livelihood to
33

about one million people including farmers, suppliers of packaging

materials,
The

services
Company

and

continuously

other

focuses

its

goods.

efforts

to

better

understand the changing lifestyles of India and anticipate consumer

needs in order to provide Taste, Nutrition, Health and Wellness through
its product offerings. The culture of innovation and renovation within
the

Company

and

access

to

the

Nestl

Group's

proprietary

technology/Brands expertise and the extensive centralized Research

and Development facilities gives it a distinct advantage in these
efforts. It helps the Company to create value that can be sustained
over the long term by offering consumers a wide variety of high
quality,

safe

food

products

at

affordable

prices.

Nestl India manufactures products of truly international quality

under internationally famous brand names such as NESCAF, MAGGI,
MILKYBAR, MILO, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in
recent years the Company has also introduced products of daily
consumption and use such as NESTL Milk, NESTL SLIM Milk, NESTL
Fresh

'n'
Nestl

Natural
India

is

Dahi
a

and

responsible

NESTL
organization

Jeera
and

Raita.
facilitates

initiatives that help to improve the quality of life in the communities

where it operates.
NESTL Milk ensures high quality and safety. NESTL Milk goes through
Ultra Heat Treatment to provide bacteria-free milk to its consumers.
The product also goes through stringent quality checks and can be
consumed straight from the pack as no boiling is required. The sealed
pack of NESTL Milk has a shelf life of 120 days without refrigeration.
However, once opened, it must be refrigerated. The packaging is
34

tamper-evident.
NESTL Milk is available in all metros AND some other states also.
Today, Nestle is the world's largest and most diversified food company.
It has around 2,50,000 employees worldwide, operated 500 factories in
approximately 100 countries and offers over 8,000 products to millions
of consumers universally

35

Chapter 3

Company Profile

36

COMPANY PROFILE
The Punjab state co-operation Milk Producers Federation Ltd. popularly
known as MILK FED PUNJAB came into existence in 1973. It was
backed by twin objective of providing remuneration milk to the market.
Although the federation was registered a lot earlier, it took the centre
stage of Punjab Diary Scenario in 1983 when all the Milk Plants of
Punjab Dairy Development Corporation Ltd. were handed over to cooperative sector and the entire state was covered under operation
flood to give the formers better value and customers better products.
The organizational set up of MILK FED is based on three tire systems

37

1. Milk producer co-operative societies at Village Level (Primary Cooperative Societies).

2. Milk Co-operative union of Districts levels (Unions).
3. Co-operative milk marketing federation as an apex body at State
Level (MILK FED).
MILK FED with its network of over 5000 village milk producers cooperative societies and three lacs milk producers from a strong
network providing assured market to milk producers. MILK FED and its
units have a workforce of about 5000 employees and also provide
regular employment to as out 600 transporters.
HISTORY: Milk Plant Gurdaspur, whose foundation stone was laid down by
S.Santokh Singh Randhawa (Dairy Development Minister of Punjab)
then commissioned by Punjab Dairy Development Corporation in
Aug.22nd, 1983. It is spread construction of the plant was begun in
1986-82 and it started working in 1986-87. It was registered under Cooperative Societies Act with Registration License No. 31/R MMPO/93.
There are three chilling stations working under this plant.
LOCATION: This plant is situated on the Pathankot road, Gurdaspur. It is two
kilometer away from Railway Station, Gurdaspur.
CAPACITY OF PLANT: -

38

The plant was designed to handle 60.000 liters per day of milk drying
and 10.000 liters per day as liquid supply. Since inception of the Plant
there was no change in the handling capacity until April 1997. Due to
good potentiality of milk in areas, efforts were always made to
enhance its handling capacity to 100.000 liters milk per day. Under the
guidance of Milk Federation Punjab, the Registrar, Cooperative
Societies Punjab, has sanctioned as sum of
Rs 140 crore from the co-operative Development Fund. These funds
are being utilized at the earliest. The loan amount should be
refundable in 5 years after moratorium period of 3 years. On expansion
the plant will handle 100,000 liters of milk per day. The registration
capacity will also increase to 1.5 lacs liters of milk per day.

39

MILK FEDS NETWORK

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

Bathinda

Chandigarh

Bassi
Pathana

Ferozepur

Faridkot
Amritsar

MILK PLANT NETWORK

Gurdaspur
Sangrur
Ropar

Hushiarpur
Patiala
Ludhiana

40

Jalandhar

CONTROLLING AUTHORITIES: The Milk Plant Gurdaspur set up by Punjab Government but in 1966 the
controlled was passed on to Punjab Dairy Development Co-operation
and subsequently its management was passed to Milk Fed w.e.f. April
9, 1983. The Gurdaspur District Co-operative Milk Producer Union Ltd
was registered on April 28th. Union has started its business on July 1,
1988 with the complete control of Plant to the Union. Moreover all the
assets

and liabilities

Development

of Punjab Government

Co-operation

at

the

Milk

Plant

and Punjab

Dairy

Gurdaspur

were

transferred to Union w.e.f. April 1, 1994.

The Union has an elected board and managing director is on
deputation from Milk Fed. The officers are in the cadre of deputation
from Milk Fed.

GOVERNMENT SUPPORT: Union finally functioned with share capital of Rs 10 lacs received from
government which was later on enhanced to Rs 103 lacs. Under the
operation flood, Milk Union, Gurdaspur has received
Plant and machinery, tanker and other assets on loan cum grant basis.
A loan was given by National Dairy Development Board amounting to
Rs 109.49 lacs (70% loan and 39% grant). In the year 1990 -91 unions
has taken Rs 53 lacs from Milk Fed as short term loan to meet its
current obligation. This year N.D.D.B. has given a loan of Rs 2.5 crore
to the Union. The union gets timely fund availability of working capital
loan.

41

MILK PROCUREMENT AT MILK PLANT: The procurement system of this Milk Plant is well organized. Milk
procurement is made through Milk Producers Co-operative Societies
which are spread over whole of the Gurdaspur. Under these societies,
there are milk producer members. These members are chosen by
village level societies from each village. These members choose a
secretary
who collect milk from milk producers and sell to the plant and earn
some percentage of commission. In November, 1998, there were
603 functioned societies having 32967 milk producer members. In
November, 1999, there were 623 functional societies having
41967 milk producers members holding membership of Milk Plant,
Gurdaspur and poured 1787634 kgs of milk.
In June 30, 2002 Milk Plant Gurdaspur has 738 functional societies out
of which 493 are working. While collection of milk, the fat contents of
milk are properly tested on order to check the quality of milk because
the price is paid according to fat contents. GERBER and MILKO Tests
are the tests applied to test protein and fat contents in milk.

42

CHILLING STATIONS: There are three chilling stations working under this plant. These are
Batala, Kahnuwan and Tugalwada.
The motive for opening these stations is to save the milk. The life of
the milk is only Five hours after it is collected. Some villages are more
away from Gurdaspur Plant and transportation times much higher than
this time. So these stations are opened to chill the collected milk so
that the life of milk be increased against five hours.

AIR / WATER POLLUTION CONTROL: The pollution created by boilers smoke and affluent discharge is
checked as per the norms of the Punjab Pollution Control Board,
necessary devices have been installed. With the start of these
equipments, the BOD of treated water (of treatment of water) being
discharged into Municipal Sewer is less than 30 i.e. well within norms.
The treated water is used for irrigation purpose on the land of Milk
Plant. Thus there is reduction of pumping of water from Earth Strata.
The result of this is 17, 00,000.

43

Chapter 4

Punjabs pride: - Ghee, lassi,

panjiri, kheer

44

Punjabs pride: - Ghee, lassi, panjiri, kheer

Punjab may be flopping on fronts like health, information technology

but its flavored Verka lassi, desi ghee; ice-cream, sweetened milk,
panjiri, paneer, curd, and kheer are doing very well in the national and
international market. Milk fed, states leading cooperative, known for
Verka brand in and outside the country has achieved 64 per cent
growth in the sale of lassi, 37 per cent in sweetened flavored milk, 31
per cent in ghee, 21 per cent in ice cream, 70 per cent in kheer and 39
per cent in paneer last year. Desi ghee and lassi have been
traditionally strong area of Punjab.
Milk fed, that has achieved overall growth of 21 per cent last year, is in
fact expecting big increase in the milk collection in winter this year.
Owing to this reason, it has already started looking for new markets in
Delhi and elsewhere to sell milk and its products.
45

Impressed by the performance of Milk fed, some of the leading

companies in milk business Yoplait group, second biggest fresh dairy
product company in the world, has approached it for long -term
partnership.

There has been 31.08 per cent growth in milk procurement in the first
fortnight of the May known as a lean period as far as procurement of
milk is concerned. During first 12 days of May, the average
procurement of milk was 8.83 lakh kg compared to 7.01 lakh kg of
corresponding period in the last year.
Amritsar, Gurdaspur, Patiala, Ludhiana, Ferozepur and Jalandhar
districts are doing very well with regard to the milk procurement.
Overall turnover of the Milk fed had gone up to Rs 918 crore by the end
of last financial year and it would cross Rs 1,000 crore at the end of
current year. Increase in the turnover has been to the extent of 20.9
per cent in 2009-10 compared to the previous fiscal year.
V.K. Singh, managing director, Milk fed, said the biggest challenge
before his organization was to find new markets to sell milk products.
Our plants can process milk up to 14 lakh kg per day but we are
expecting milk procurement touching figure of 17 lakh kg during the
winter this year. Hence, we need new markets to sell milk and its
products, he said.
Milk fed had given best price Rs 14.50 per kg cow milk and Rs 17.50
per kg for buffalo milk. To keep dairy farmers and other milk producers
in the state motivated, we will not slash its price during the flush
season, he said. Except Amritsar and Sangrur, all other milk plants in
46

cooperative sector were doing very well, he added. He said Milk fed
was in profit and would become a blue-chip organization in a year or
two.
Efforts made by us in enhance milk production by supporting the
setting up new dairy farms has started giving dividends, he said.
We are supplying milk even in Srinagar local market and also looking
to develop market in north-east such as Assam to sell milk products
especially value added ones. There was a plan to set up a plant near
Delhi because that was a biggest consumer market. Areas in which
Milk fed is not showing promise is table butter that has registered a
negative growth of 11 per cent and internal and external sale of
skimmed milk that has registered a negative growth of 24 per cent.
There are also problems on human resources front because private
sector has been keeping eye on its professionals and luring them away
by offering higher pay packets. V.K. Singh said, We would have to
adopt the corporate pattern to higher and retain best talented persons
in milk sector to compete with private sector.
PRODUCTS
The Verka range:
Fresh Milk

Long shelf life milk

(UHT)
DTM

Skimmed Milk

Toned

Double Toned Milk

Standard

Toned Milk (Taaza)

Full Cream

Cow Milk
47

Skimmed
Camel Milk
Fresh Milk Products

Long Shelf Life Milk Products

Chaach

Ghee

Lassi

Cow Ghee

Dahi

Table Butter

Paneer

SMP

Shrikhand

WMP

Icecream

Cheese

Rasgulla

Dairy Whitener

Flavored Milk

White Butter

Mawa
Today Verka Milk Plant Gurdaspur provides liquid milk of four types
name

Toned

Double toned

Standard and Gold (Full cream) and

Various products like Ghee, Paneer table butter, chach, lassi,

shrikhand in the district of Gurdaspur and also other grid. Its sale
tetra packs milk throughout the Punjab.

The plant is managed and operated by will-qualified, competent and

experienced, managerial cadre and highly motivated work force to
provide highest quality of product and best of services to its esteemed
customers.

48

To further improve the efficiency and efficiency and effectiveness of

the plant performance, of Verka Milk Plant Gurdaspur.
OBJECTIVES
The primary concern of Verka Milk Plant Gurdaspur is to provide best
quality and safe products and services, achieved this quality objectives
of Verka Milk Plant Gurdaspur dairy are designed to
Meet a well defined needs use and purpose of costumer.
Satisfy customers expectation for good and safe milk and milk
products.
Comply with applicable national and international standard.
Make available milk and milk products at comparative price.
Ensuring implementation of quality management system.
Application ad adherence of HACCP principal for food safety.
Motivates

employees

for

participation.

49

professional

excellence

and

Chapter 5

QUALITY POLICY

50

QUALITY POLICY
The Verka Milk Plant Gurdaspur believes that the delighted customer is
the only key for overall development of the organization
This is achieved by: Educating milk products for clean milk production.
Manufacturing and supplying milk and milk products and services
of consistent quality at comparative price.
Adoptive innovate and modern technologies and system.
Developing committed workforce.
Adoption of safety and environment friendly standards with help
of application of HACCP principals.

Quality
Verka Milk Plant Gurdaspur has got a sophisticated quality Control
Laboratory, which is equipped to carry out almost all the chemical and
bacteriological tests related with milk and milk products. The QC Lab
also carries quality tests for various packaging material, ingredients,
and chemicals used in Verka Milk Plant Gurdaspur. The service of the
quality control lab is also used for carrying our consumer awareness
programs like Dudh ka Pani Ka Pani. We also have facility for general
public for getting their milk or Ghee samples tested in our quality
control lab free of cost.

51

Engineering
The lifeline of Verka Milk Plant Gurdaspur i.e. steam, water and
refrigeration is provided and maintained by the Engineering section.
Apart from this section does regular maintenance both preventive and
corrective only. Considering the perishable nature of milk, the
engineering section has to be on its toes always.
The section is managed by will qualified and experienced manpower,
which are at par with any professional organization.

52

Chapter 6

ORGANIZATIONAL CHART

53

ORGANIZATIONAL CHART

General
Manager

Manager
Quality
Assurance

Manager
Engineering

Incharge
Purchase

Incharge
Marketing

Deputy
Manager
P.A.

Manager
Milk
Procurement

M.R.

Incharge
Store

Local
Routes

Boiler

Chilling
Centers

Electrical
Chemical Testing &
Packing Material

Liquid Milk
Testing
Mechanical

Refrigeration
Microbiological
Testing

Dy. Manager
Reception &
Processing

Dy. Manager
Liquid & Milk

54

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

GENERAL MANAGER
G.M. is the topmost authority in particular milk plant. He is the
incharge of affairs of union in process provides due price to milk
producers and assures good quality to the consumers at the most
reasonable price.
G.M. who is duly assisted by mangers of various line functional
departments plus staff to carry out his task and any problem related to
different departments are dealt by him.
The name time periods of the G.M. are as follows: 1.

Sh. G. S Dhami

1980 84

2.

Dr. Virban Singh

1984 89

3.

S. Surjit Singh Bhullar

1989 90

4.

Sh. K.K. Bali

11-06-90 to 04-10-90

5.

S. Amrik Singh

Dec 1990 to Dec 1993

6.

Sh. G.S Dhari

Dec. 1993 94

7.

S. Amrik Singh

01-09-1994 98

8.

Sh. S.K. Mahajan

13-09-94 98

9.

S. Amarjit Singh

10.

S.Kuldeep Singh

1998-2002 31-03-2002
01-04-2002 till now

As far as the organizational structure is concerned we can say that the

federation is a state Level Apex co-operative Organization owned by its
member unions each of which, in turn, is owned the dairy co-operative
societies in its area of operation which are themselves owned by
farmer members.

55

The federation has a board of directors which has overall responsibility

for

the

planning

policies,

financial

resource

mobilization

and

management, member and public relations as well as liaison with

agencies of the state and central Government, financing institutions
etc. The federation has chief Executive designed as Managing Director.
It is a vertically integrated structure that established a direct linkage
between those who produce the milk and those who consume it.
Federation provides services and support to union. Marketing with in
and outside State. Liaison with government and NGO agencies,
mobilization of resources and co-ordination planning programmes or
project.

56

Chapter 7

Human Resource Development

57

Human Resource Development

Verka Milk Plant Gurdaspur has always considered its staff member as
an asset. Various programs are run on continuous basis for keeping the
morale of employees high. Without the positive support of the
employees, the success story of Verka Milk Plant Gurdaspur would not
have been possible. Yearly Get-together of all officers and employees is
one of the most important events of Verka Milk Plant Gurdaspur.

For the last few years, more emphasis is being given on employees
training in the field of Attitude, Customer Relations, Positive Thinking,
Time Management, Stress Management and Team Building etc; apart
from technical subjects. Employees are being made aware of such
subjects either by nominating them to various training organizations
and workshops and seminars. Also experts are being invited to conduct
in house workshops and seminars. Verka Milk Plant Gurdaspur has h
HRD cell also, which circulate good and readable articles to employees
for self-development.

58

Chapter 8

SWOT Analysis

59

SWOT ANALYSIS

STRENGTH: 1. Minimum interference from top management in day to day

working.
2. Qualified, experienced and devoted workforce.
3. Brand name VERKA.
4. Direct contacts with milk producers.
5. Own cattle feed plant and fodder seed grading station for
supplying certified fodder seeds.
6. Technical and financial guidance and support from Milk Fed Head
Office Chandigarh as well as National Dairy Development Dairy
Board.
7. ISO and HACCP certification.
8. Surplus created capacities.
9. Good

corporate

governance

and

socially

responsible

organization.
10. Quality of available milk is very good

WEAKNESS: -

1. Situated

between two rivers RAVI and BEAS and prone to

floods and sometimes havoc is caused which ultimately

affects the cattle population in the crease.

2. Indo

Pak Border is near to Gurdaspur District at which

situation always disturbing local population which ultimately

affects cattle rearing by the people.

60

3. Highly completive markets.

4. Financial position of plant is very weak from many years.
5. Sufficient working capital is not available.
6. Stagnation in milk procurement.
OPPORTUNITIES: -

1. Himachal

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

Supply Milk and Milk Products.

2. Milk

Chilling

Centre

Fatehgarh

Churian

falling

in

District

Gurdaspur, if handed over to Gurdaspur Union Milk, procurement

can be increased.

3. Veterinary

health care and breeding facilities is to be increased

for improving genetic milk yielding characters of animals.

4. Feasibility

of home delivery system for city supply milk to be

exposed.

5. Diversification of land use for improving profits.

6. Innovative energy saving measures is required to bring down the
cost of production and improve profitability.
THREATS: -

1. Border tensions and river floods.

2. Increasing salary bills as compared to turnover.
3. WTO agreements.
61

4. Non adoption of dairy farming as a side business by formers.

5. Higher cost of raw materials as compared to realization.
6. Continuous

increase in higher rates of raw materials as

compared to comparative increase in the price realization of milk

products.

7. Lack of autonomy in functioning.

Chapter 9

PROFIT AND LOSS ACCOUNT

62

PROFIT AND LOSS ACCOUNT

Profit and loss account is depicted from the Balance Sheet. According
to this account, the company comes to know about the real position of
the company by knowing that whether the company has gained or
loss. As the checking of this account reveals that profit and loss
account for the year 31.03.2009, 31.03.2010 was misrepresentation of
accounts and depicts the position which is not correct because the
plant authorities had shown appropriation loss account of Rs
49,69,96,162.62/- on 31.03.2009, Rs 53,41,04,641.63/- on 31.03.2010
in Balance Sheet by preparing separate P & L appropriation account by
the union when provision of this expenses which were increased from
2009-2010 was not made. Plant concealed net loss for the concerned
years to the tune of Rs 1, 79,01,905.58/- and Rs 1,45,36,884.77/- for
31.03.2009 and 31.03.2010 respectively by not showing as net loss for
that year.
Besides many reasons the main reason for loss as explained by the
plant authorities is running the plant in under capacity resulting high
production
cost
and
fixed
cost,
low
margin
between

63

purchase/production price and sale price does not cover the various
expenditures which are incurred in procurement.

MANUFACTURING,
OF2009 - 2010

TRADING

&PROFIT

&

LOSS

ACCOUNT

Previous year
(amount)

Particulars

Current year
(amount)

Previous year
(amount)

7,13,42,395.80

Opening
stock

8,12,58,066.0
0

28,66,99,619.4
2

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

31,64,46,682.
57

36,81,24,938. Sale of milk& 37,55,13,351

64
milk
.17
products
32,64,995.00 Misc. income 10332870.49

2,36,48,275.32
57,90,158.68
2,28,33,697.78

2,72,95,223.1
8
71,01,192.68
2,44,74,667.0
1

64

Particulars

Current year
(amount)

8,12,58,066.0 Closing stock 10,35,47,007

0
.00

2,28,33,697.78

Packing
expenses

1,79,69,644.7
0

1,18,69,119.60

Store/Purcha-se/
Engg
expenses
Admn/accou
nts expenses

1,37,25,203.3
4

2,557.00

Service Tax

4,202.00

97,77,021.75

Distribution
expenses

99,37,265.84

27,33,803.65

Depreciation

27,11,437.89

4,14,73,523.80

49,69,96,162.6
2

2,59,04,726.7
9

53,41,04,641.
63

65

2,64,46,257.4 Sale on
3,01,74,528.
0
Consignment 20
Basis

1,79,01,905.5 Loss for the

8
Year

1,45,36,884.
77

49,69,96,162.
62

53,41,04,641
.63

Chapter 10

THE BALANCE SHEET OF

2008-09 AND 2009-10

66

THE BALANCE SHEET OF 2008-09

Liabilities

Year 2008-09
(amount)

Assets

Year 2008-09
(amount)

Share capital

1,32,76,100.00

Fixed assets

9,93,20,509.3
4

and 8,04,28,468.37

Investments

1,55,00,100.0
0

Current assets

11,04,14,541.
25

Reserves
surplus

Secured loans

3,07,84,483.00

Current liabilities 31,59,48,287.93 Stock in transit

and provision
Hare stabilization
fund

Total

1,54,775.00

44,05,92,114.30

67

Accumulated
losses

19,37,34,246.
13

Appropriate
losses

37,20,812.00

Loss of the year

1,79,01,905.5
8
44,05,92,114.
30

THE BALANCE SHEET OF 2009-10

Liabilities

Year 2009 10
(amount)

Assets

Year 2009 10
(amount)

Share capital

1,37,67,100.00

Fixed assets

10,225,97,23.
94

and 9,80,11,843.34

Investments

1,55,00,100.0
0

Current assets

12,38,81,995.
71

Reserves
surplus

Secured loans

3,33,31,243.00

Current liabilities 32,63,82,079.85 Stock in transit

and provision

Hare stabilization
fund

21,53,56,963.
71

43,402.00

Accumulated
losses
Appropriate
losses
Loss of the year

Total

47,15,35,668.19

68

47,15,35,668.
19

Chapter 11

Comparative Balance Sheet of

2008-09 & 2009 - 10

69

COMPARATIVE BALANCE SHEET

2009

2010

Assets

Increase/decreas

Percentag

e amount

Fixed assets

9,93,20,509.3

10,22,59,723.

(+)29,39,214.6

2.9 %

Current assets

4
11,04,14,541.

94
12,38,81,995.

(+)1,34,67,454.5

12.1 %

Investments

25
1,55,00,100.0

77
1,55,00,100.0

2
Nil

0%

Accumulated

0
19,37,34,246.

0
21,53,56,963.

(+)2,16,22,717.5

11.1 %

13
the 1,79,01,905.5

71
1,45,36,884.7

8
(-)33,65,020.81

(-)18.7%

losses
Loss
of

year
Appropriation

8
37, 20,812.00

7
Nil

nil

Loss
Total assets

44,05,92,114.

47,15,35,668.

(+)30943553.89

30

19

Liabilities

& 2009

2010

Capital
Share capital
Reserves

nil
7.0 %

Increase/decreas

Percentag

e amount

1,32,76,100.0

1,37,67,100.0

(+)4,91,000.00

3.6 %

0
and 8,04,28,468.3

0
9,80,11,843.3

(+)1,75,83,374.9

21.8 %

surplus
Secured loans

7
3,07,84,483.0

4
3,33,31,243.0

7
(+)25,46,760.00

8.2 %

Current

0
31,59,48,287.

0
32,63,82,079.

(+)1,04,33,791.9

3.3 %

85

43,402.00

(-)1,11,373.00

liabilities
provisions
Share

& 93
1,54,775.00

stabilization
Fund

70

71.9 %

Total

44,05,92,114.

471535668.19

(+)30943553.89

7.0 %

The comparative balance sheet of the company reveals that

during 2009, there is an increase in fixed assets of Rs
9,93,20,509.34 and there is an increase in current assets of Rs
11,04,14,541.25 and there is an increase in total assets by 7.9
%. Reserve and surplus increased from Rs 8,04,28,468.37 to Rs
9,80,11,843.34 i.e. 21.8 % .

Current liabilities and provision are decreased from 44, 05,

92,114.3 to 37, 35, 23, 824.85. Overall position of the company
is satisfactory.

71

Chapter 12

Data Interpretation

72

Comparative Analysis of Assets in Data Interpretation 2008-09

to 2009-10
Q 1 Change in Fixed Assets in 2008-09 to 2009-10

73

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

74

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

75

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

76

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

77

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

78

Chapter 13

Suggestions

79

Suggestions:
1. Verka milk plant should concentrate more on marketing
strategies.
2. Expand themselves to other states also.
3. Feasibility of home delivery system for city supply milk to be
exposed
4. Innovative energy saving measures is required to bring down the
cost of production and improve profitability.
5. try to create retained earning reserve and utilize it for its own
development.
6. Bring more varieties in its product range.

80

Chapter 14

Bibliography

81

Bibliography

Pandey

I.M.,

financial

management,

Ninth

addition,

UBS

Publication New Delhi.

Mahant

R.N.,

Management

Accounting,

Sahitya

Bhawan

Publications, Agra

Van

Horn, (2009), Financial Management and Policy,12 th edition,

Publisher Dorling Kindersley India ltd.

Horne Wwachonicz, J.R.Bhaduri (2009), Fundamentals and

Financial management, 12th edition, Pearson publisher.

Jain. P.K. Financial Management,5th edition, Publisher Mc grew hill

companies.

Income

statement and financial statement of 2009-10 as

obtained from Gurdaspur Dairy.

Financial dailies.
Economic Times
Business Standard

Business Magazines
Business India
Business World

Internet Portals:

www.verkadairy.com

82

www.dairyindia.com

www.milkfeed.com

83

Chapter 15

Appendix

84

Appendix
THE BALANCE SHEET OF2009-2010
Previous
year
(amount)
5,00,00,000.
00
1,32,76,100.
00

Liabilities

Current year
(amount)
5,00,00,000.
00

Previous
year
(amount)

Assets

Current year
(amount)

Share
capital

1,37,67,100.
00

9,93,20,509.
34

Fixed assets

10,225,97,23.
94

8,04,28,468.
37

Reserves
and surplus

9,80,11,843.
34

1,55,00,100.
00

Investments

1,55,00,100.0
0

3,07,84,483.
00

Secured
loans

3,33,31,243.
00

11,04,14,541 Current
.25
assets

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

32,63,82,079
.85

43,402.00

Stock
transit

21,53,56,963.
71

37,20,812.00 Appropriate
losses

47,15,35,668 44,05,92,114
.19
.30

85

in -

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

1,79,01,905.
58
44,05,92,114
.30

12,38,81,995.
71

Loss of the 1,45,36,884.7

year
7
47,15,35,668.
19

COMPARATIVE BALANCE SHEET

2009

2010

Increase/decreas
e amount

9,93,20,509.3
4
11,04,14,541.
25
1,55,00,100.0
0
19,37,34,246.
13

10,22,59,723.
94
12,38,81,995.
77
1,55,00,100.0
0
21,53,56,963.
71

(+)29,39,214.6

2.9 %

(+)1,34,67,454.5
2
Nil

12.1 %

(+)2,16,22,717.5
8

11.1 %

Appropriate
1,79,01,905.5
loss of the year 8

1,45,36,884.7
7

(-)33,65,020.81

(-)18.7%

Total assets

47,15,35,668.
19

(+)3,46,64,365.8
9

7.9 %

2010

Increase/decreas
e amount

1,37,67,100.0
0
9,80,11,843.3
4

(+)4,91,000.00

3.6 %

(+)1,75,83,374.9
7

21.8 %

3,07,84,483.0
0

3,33,31,243.0
0

(+)25,46,760.00

8.2 %

Current
31,59,48,287.
liabilities
& 93
provisions
Share
1,54,775.00
stabilization
Fund

32,63,82,079.
85

(+)1,04,33,791.9
2

3.3 %

43,402.00

(-)1,11,373.00

71.9 %

Total

37,35,23,824.
85

(-)6,70,68,289.45

15.2 %

Assets
Fixed assets
Current assets
Investments
Accumulated
losses

43,68,71,302.
3

Liabilities
Capital

& 2009

Share capital
Reserves
surplus

1,32,76,100.0
0
and 8,04,28,468.3
7

Secured loans

44,05,92,114.
3

86

Percentag
e

0%

Percentag
e

MANUFACTURING, TRADING &PROFIT & LOSS ACCOUNT OF2009 - 2010

Previous year
(amount)

Particulars

Current year
(amount)

Previous year
(amount)

7,13,42,395.80

Opening
stock

8,12,58,066.0
0

28,66,99,619.4
2

Purchase of
milk&
milk
products
Procurement
Expenses
Processing
expenses
Production
expenses
Packing
expenses

31,64,46,682.
57

36,81,24,938. Sale of milk& 37,55,13,351

64
milk
.17
products
32,64,995.00 Misc. income 10332870.49

Store/Purcha-se/
Engg
expenses
Admn/accou
nts expenses

1,37,25,203.3
4

2,557.00

Service Tax

4,202.00

97,77,021.75

Distribution
expenses

99,37,265.84

27,33,803.65

Depreciation

27,11,437.89

2,36,48,275.32
57,90,158.68
2,28,33,697.78
2,28,33,697.78
1,18,69,119.60
4,14,73,523.80

49,69,96,162.6
2

2,72,95,223.1
8
71,01,192.68

Particulars

Current year
(amount)

8,12,58,066.0 Closing stock 10,35,47,007

0
.00

2,44,74,667.0
1
1,79,69,644.7
0

2,59,04,726.7
9

53,41,04,641.
63

87

2,64,46,257.4 Sale on
3,01,74,528.
0
Consignment 20
Basis

1,79,01,905.5 Loss for the

8
Year

1,45,36,884.
77

49,69,96,162.
62

53,41,04,641
.63

Chapter 17

Project Synopsis

88

89