Professional Documents
Culture Documents
mother dairy for the users of the financial statements to access the ability of the
mother dairy to generate cash and cash equivalents to serve the needs of the
organization.
To offer limited directions cash management group to steer the organization to a cash
surplus company.
Mother dairy having the continuous growth every year several divisions, the
study of budgetary control in this organization gives a fair idea on the cash
The budgetary estimations are taken for the project study form the annual
reports for the information, and are restricted to the last five years. Several aspects of
The discussion is made in ensuring chapter for the budgetary estimations that
have been prepared at the end of the financial year, and the date is compared with the
1
METHODOLOGY OF THE STUDY:
There are mainly two important sources through which the whole data is collected.
Primary Data
The primary data of the topic is collected by personal interaction with the
officials of the finance and accounting department and also from annuals of the
company. The financial data relating to organization has been collected for the 5years.
Secondary Data
The data collected from the websites, books and all other relevant information or
literary are taken as secondary source of data. The data thus collected is
arranged in a format.
The is the project report (live project) conducted in the month of April,2007 for 45
(MBA).
2
PRESENTATION OF THE STUDY
1) The first chapter is the present scenario of the topic together with objectives
and methodology are presented.
2) The second chapter is about the profile of the MOTHER DAIRY is given in
which the study is done.
3) The third chapter is about industrial profile.
4) The fourth chapter is conceptual frame work relating to budgets and a budget
is reported through tables.
5) The fifth chapter consists of the study of budgetary control of MOTHER
DAIRY.
6) The sixth chapter consists of the suggestion & bibliography.
The 6 weeks period is one of the constraints to make project much more qualitatively
Findings of the study are purely based on information provided by the company other
non financial factors were not considered for analysis.
3
INTRODUCTION TO DAIRYING IN INDIA :
milk waiting at their doorstep. Across the country, the dairy products like butter,
cheese, ghee, find their way into millions of homes in the metros, cities, towns and
Milk is the nourishes of health and it was this elixir that brought forth
significant change in the lines of the people of A.P it as changed the way people
looked at life in rural India. But most of all it renewed there hopes and raised their
assumptions.
The main rust was not in just supplying milk but also in giving opportunities to
improve the quality of rural life. And maybe for the first time allowing them to dream.
In India there are four different kinds of sectors in the field of dairying
1. PRIVATE SECTOR
Individual persons forming his/her dairy shop and collects milk and sale the milk and
2. PUBLIC SECTOR
In this kind of sector, dairying is done by govt. by purchasing milk. From middlemen
and milk producers and processing of milk is done in their own plant and then sold to
the customers.
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3. TRADING SECTOR
milk union at district level, by which arrangements for collection, processing and
CO-OPERATIVE SOCIETIES:
some common purpose. The basic principle of cooperatives is “each for all and all for
persons voluntarily associate together as human beings an basis of equality for the
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REVIEW OF LITERATURE
BUDGET:
Budget is essential in every walk of our life –national, domestic and business.
A budget is prepared is to have effective utilization of funds and for the realization of
objective as effective utilization of funds and for the realization of objective as
efficiently as possible. Budgeting is a powerful tool to the management for
performing its functions i.e., efficiently. For efficient and effective and budgetary
control provides a set of basic techniques for planning and control are two highly
essential functions. Budget and budgetary control provides a set of basic techniques
for planning and control.
A budget fixes a target in terms of rupees or quantities against which the
actual performance is measured. A budget is closely related to both the management
function as well as the accounting function of an organization.
As the size of the organization increases, the need for budge thing is
correspondingly more because a budget is an effective tool of planning and control.
Budget is helpful in coordinating the various activities (such as production, sales,
purchase etc) of the organization with result that all the activities precede according to
the objective. Budgets are means of communication. Ideas of the top management are
given practical shape. As the activities department heads are coordinated at the much
needed for the very success of an organization. Budget is necessary to future to
motive the staff associate, to coordinate the activities of different department and to
control the performance of various persons operating at different levels.
Budgets maybe divided into two basic classes. Capital and operating Budgets. Capital
Budgets are directed towards proposed expenditure for new projects and often require
special financing.
The operating Budgets are directed towards achieving short-term operational
goals of the organization for instance, production or profit goals in a business firm.
6
Operating Budgets maybe sub-divided into various departmental of functional
Budgets .
DEFINITION OF BUDGET
quantified in monetary term prepared and approved prior to a defined period of time
statement, prepared and approved prior to be defined period of time, of the policy to
be pursed during the period for the purpose of attaining a given objective.”
BUDGETARY CONTROL:
control in the organization with the help of Budgets is known as budgetary control.
3. Continuous comparison of the actual performance with that of the budget and
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5. revision of Budgets in the light of changed circumstances.
with the Budgeted and acting up in the results to achieve the maximum profitability.”
According to the j. Betty ”system which uses Budgets as means of planning and
Row land and William in their book entitled Budgeting for management control has
given the difference between Budgets. Budgeting and budgeter control as follow:
“Budgets are the individual objectives of an department etc where as budgeting may
be said to be the act of budgets. Budgetary control embraces all this and in addition
includes the science of planning the Budgets themselves and the utilization of such
Budgets to efforts on overall management too! For the business planning and
control.” Thus , a budget is financial plan and budgetary control results from the
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ESSENTIAL FEATURES OF A BUDGETARY:
► Budgetary control defines the objective and policies of the undertaking as a whole.
business unit. It fixed targets and the various departments have to efficiently to teach
the targets.
business unit. It fixed targets and the various departments have to efficiently to reach
the targets.
►it helps the management to fix up responsibility in case the performance is below
expectation.
►it brings in efficiency and economy by promoting cost consciousness among the
employees.
►it facilitates centralized control with decentralized activity.
►it acts as internal audit by a continuous evaluation of departmental results and costs.
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ADVANTAGES OF BUDGET AND BUDGERTARY CONTROL.
● Compels management to think about the future, which is probably the most
look ahead, to set out detailed plans for achieving the targets for each department,
operation and (ideally) each manager, to anticipate and give the organization purpose
and direction.
responsible for the achievement of budget targets for the operations under their
personal control.
from budget can then be investigated and the reasons for the differences can be
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PROBLEMS IN BUDGETING
Whilst budgets may be an essential part of any marketing activity they do have
● Waste may arise as managers adopt the view, “we had better spend it or we will lose it”.
This is often coupled with “empire building” in order to enhance the prestige of a department.
Responsibility versus controlling, i.e. some costs are under the influence of more than one
person, e.g. power costs.
● Managers may overestimate costs so that they will not be blamed in the future
should they overspend.
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LIMITATION OF BUDGETARY CONTROL
policies is really difficult. Thus, the accurate position of the business cannot be
estimated.
►Budget is only a management tool. It is not a sub stature for management. It cannot
►There will be active and passive resistance to budgetary control as it points out the
►The success of budgetary control depends upon willing co-operation and team work.
►Frequent changes maybe called for in budgets due to fast changing industrial
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PLANNING
time to attain a given objective. The Budget control will force management at all the
Activities to be done during the future periods Budget as a plan of action achieves the
following purpose:
►Action is guided by well thought out plan because a budget prepared after a careful
►The budget serves as mechanism though which management objectives and policies
are affected.
►It is bridge through which communication is establish between the top management
and the operatives who are to implement the policies of the top management.
► The most profitable course of action is selected from the various available
alternatives.
CO-ORDINATION:
The Budgetary control co-ordinates the various activities of the firm and
secure co-ordinates the various activities of the firm and secures co-operation of all
concerned so that the common so that the common objective of the firm maybe
control is like a ship sailing in a chartered sea. A Budget gives direction to the
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MOTIVATION
convinced that their personal interest are closely associated with the success of
The Budget will motivate the workers, depends purely on how the workers have been
CONTROL
actual performance with that of the budget so as to report the variations from the
management planning function with the control function performed at all levels in the
And control device depends upon the activity in which it is being used. The more
accurate budget can be developed for those activities where direct relationship exists between
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APPROVED PLAN
proposed plan of operations. It concerns all functions of organizations and serves as a guide to
COMMUNICATION
The employees of an organization should know organizational aims, adjectives
of sub units {Budget centers} and the part that thy have to play for their adamant.
BUDGET PROCEDURE
Having the Budget organization and fix the period, the actual work or
manual should be prepared giving detail of the powers, sixties, responsibilities and
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BUDGETARY MANUAL
A budgetary manual lays down the details of an organizational set up, the
various items and the duties and responsibilities of the executives regarding the
manual as “ a document schedule or book let which sets out inter alias, the routine of
budgets. Budgets are to be drawn keeping in view the objectives of the organization
given the Budget manual, responsibility and functions of each executive in regard to
Budgeting are return sown in the budget manual to avoid any duplication or
overlapping of responsibilities, steps and the methods developing various budgets and
the methods of reporting performance against the budget are return down in the
the preparation and execution of carious Budgets , it should be clear and there should
be no ambiguity in it.
The following are some of the most important matters covered in budget manual.
2) Organization chart giving the titles to different personals with full explanation
functional budgets.
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5) A statement showing a responsibility given to each manager for approval of
budgets, vouchers and all other forms and documents which authorized them
to spend money. The authority for granting approval must be clearly stated.
7) Purpose, specimen form and other number of copies to be used for each report
The Budget period mean the period for which a Budget is prepared and employed. The
Budget period will depend upon the type of business and the control aspect.
Budget period mean the period for which a Budget is prepared and employed. The Budget
period depends upon the nature of the business and the control techniques. For example, in
case of seasonal industries (i.e., food or clothing) the Budget period should be a short one and
should cover one season. But in case of industries with heavy capital expenditure such as
heavy engineering works, the budget period should be ling enough to meet the requirements
of the business. From control point of view , the budget period should be a short one so that
the actual results may be compared with the budget each week end or month end and
discussed with the discussed with Budget committee. Long term Budgets should be
supplemented by short term Budgets to make the Budgetary control successful, as short-terms
Budgets will helping exercising control over day-today operations .in short, the budget period
should not be too ling so that there may be sufficient time before budget implementation. For
most business, annual budget is quite common because it compares with the financial
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accounting year.
There should be a regular time plan for budget preparation. It may be on the following lines.
• Long-term budgets for three to five years should be prepared for expansion and
undertaking advertisement.
• Annual budgets coinciding with financial accounting year should be prepared for the
operations activities (i.e., sales, purchases, and production etc., of the business).
budgets are prepared to see that actual performance is preceding according to the
budgets and early corrective action may be taken if there is any pitfall.
BUDGETARY CONTROLLER:
Although the chief executive I finally responsible for the budgetary programmer. It is
knowledge of the technical details of the business and report directly to the president
continuous process under these methods of preparation of Budget. Once the first
period elapses, the forecast for that period is dropped and the forecast reliably, this
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reduction in operational variances.
budgets may not help the management to have control because variances due to
rapidly changing conditions affect the sales in quantity and prices, severe rapidly
changing conditions affect the sales in quantity and prices, severe inflationary
conditions exist resulting fast increase in the prices, severe inflationary sales prices
immediately and wide range of products being produced making it not feasible to
The procedure in continuous budgeting will be that a year will be divided into
four quarters. Monthly budgets for the first quarter and three quarterly budgets for the
next year can be prepared . For the first quarter precise estimates can be drawn up
monthly . The; budget estimates for the second quarter may be revised working out
separately monthly estimates on more precise basis for control purposes before the
Similarly procedure may be followed for third and fourth quarter . This
method a time which need not be in respect of or coincide with the financial year. It
will enable to evolve a precise plan of action and control of variance functions at the
least for the immediate quarter and a broad tentative one the subsequent three quarters
on a continues basis.
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PRINCIPAL BUDGET (LIMTTING) FACTOR:
Principal budget factor is such an important factor that it would affect all the
functional budgets to a large extent. The extent of its influence must be assessed first
in order to ensure that functional budgets are reasonably capable of fulfillment. This is
the factor in the activities of an undertaking which at a particular point in time or over
a period will limit the volume of output. It is the governing factor which is a major
constraint on all the operational activities of the organization, so this factor is taken
essential to locate the limiting factor may be any one of the following:
For example: A concern has the capacity to produce 50,000 units of particular
item per year. But only 30,000 units can be sold in the market. In this case, low
demand for the product is the limiting factor. Therefore sales budget should be
prepared first and other functional budgets, such as production budget, labor budget,
plant utilization budget, cash budget etc. should be prepared in accordance with this
case plant capacity is limited. Therefore, production budget should be prepared first
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Thus, the budget relating to limiting factor should be prepared first and the
other budgets should be prepared in the light of that factor. All budgets should be co-
coordinated keeping in view the principal budget factor if the budgetary control is to
Principal budget factor is not static. It may very rapidly from time to time due
to internal and external factors. It is of temporary nature and in the light run can be
Different types of budgets have been developed keeping in view the different
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FUNCTIONAL BUDGET:
undertaking e.g., sales, production, research and development, cash etc, the following
Budget Prepared by
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SALES BUDGET:
Sales budget is the most important budget and of primary importance. It forms the
basis in which all the budgets are built up. This budget period. Every quantities and
made to ensure that its figures are as accurate as possible because this is usually the
starting budget (sales being limiting factor on which all the other budgets are built
up). The sales manager should be mode directly responsible for he preparation and
execution of the budget. The sales budget may be prepared according to products,
sales territories, types of customers; salesmen etc., in the preparation of the sales
budget, the sales manager should take into consideration the following factors.
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PRODUCTION BUDGET:
broken down into estimates of output of each type of product with a scheduling of
operations (by weeks and months) to be performed and a recast of the closing finished
stock. This budget may be expressed in quantitative (weight, units et) financial
(rupees) units or both. This budget is prepared after taking into consideration the
estimated sales and the desired closing finished stock of each product. The works
manager is responsible for the total production budget and the departmental managers
are responsible for the departmental production budget. In preparing the production
The time lag between the production in the factor and sales to the customer
should be considered so as to allow fro the time required or the dispatch of goods
The stock of goods to be maintained both at the factory’s go gown and at he sales
centers.
The level of production needed to meet the sales programme. Monthly production
targets should be fixed and it should be seen that production is kept more or less at a
uniform level throughout the year. The material labor and plant requirements should
The sales and the production are inter-dependant because production budget is
governed by the sales budget and the sales budget is largely determined by the
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COST OF PRODUCTION BUDGET;
After determining the volume of output the cost of procuring the output must
be obtained by preparing a cost of production budget. This budget is an estimate of
cost of output planned for a budget period and may be classified into material cost
budget, labor cost budget and overhead budget because cost of production includes
material. Labor and overheads.
MATERIALS BUDGET;
In drawing up the production budget, one of the first requirements to be
materials budget deals with the requirements and procurement of direct materials.
Indirect materials are dealt with under the works overhead budget. The budget should
be related to the production budget and the period of the budget should be of short
duration because this budget has an important bearing on the cash budget.
PURCHASE BUDGET:
Purchase Budget is mainly dependent on production budget and material
requirement budget. This budget provides information about the materials to be
acquired from the market during the b period.
Purchase budget should be prepared by the purchase manager by getting relevant
information about capital items, general supplies and direct materials required during
the budget period from other related departments. Like other budgets , the purchase
budget has to be approved by the budget committee. After approval it becomes the
responsibility of the purchases which are not covered by the purchase budget are
made under the following circumstances.
If there is increase in production not anticipated while preparing the purchase budget
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DIRECT LABOR BUDGET:
This budget gives as estimate of the requirements of direct labor essential to
meet the production target. This budget may be classified into labor requirements
budget and requirement budget. The labor requirement budget is developed on the
regarding he different classes of labor e.g., fitters, welders, turner, millers, and
grinders and drillers etc., required for each department, their scales of pay and hours
to be spent. This budget is prepared with a view too enable the personnel department
to carry out programmers of training and training and transfer and to find out sources
of labour needed so that every of effort may be made to remove difficulties arising in
production the available workers in each department, the expected changes in the
labour force during the budget period due to the labour turnovers. This budget gives
information about the personnel specification for the jobs for which workers are to be
recruited, the degree for skill and experience required and the rates of pay. Where
standard costing system is applied, the lacor cost budget is developed on the basis of
standard in the production budget . if standard costing system is not being followed in
the organization, the information of labour cost may be obtained from past records or
estimated cost.
budget gives the requirements of direct and indirect labour necessary to meet the
development and capital expenditure budget s. the labour terms are expressed of rupee
value, number of labor hours, number and grade of workers etc. this budget makes
provision for shift and overtime work and for the effective training for new workers
on labour cost.
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MANUFACTURING OVERHEADS BUDGET:
This budget gives an estimate of the works overhead expenses to be in creed in
a budget period to achieve the production target. The budget includes the cost of
indirect material indirect works expenses. The budget may be classified into fixed
cost, charitable cost and semi-variable cost. It can be broken into departmental
overhead budget to facilitate control. In preparing the budget, fixed works overhead
can be estimated on the basis of past information after taking into consideration the
expected changes which may occur during the budget period. Variable expenses are
estimated on the bases of the budgeted output because these expenses are bound to
change with the change in put.
The Cost Account prepares this budget on the basis of figures available in the
manufacturing overhead ledger or the head of the workshop may be asked to give
estimates for the manufacturing expenses. A good method is to combine the estimates
of the Cost Accountant and the shop executive.
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BUDGETED INCOME STATEMENT:
A budgeted income statement summarizes all the individual budget i.e., sales
budget, cost of goods sold budget, selling budget, and administrative sales budget.
This budget determines income before taxes. If the tax rate is available net income
This budget is the forecast of the cost selling and distribution for budget
period and is clearly related to the sale budget. All expenses related to selling and
distribution of the various products as indicated in the sales budget is included in it.
These expenses are based on the volume of sales set in the sales budget and budget
and budgets are prepared for each item of selling and distribution overhead. Long
term expenses.
As advertisement are spread over more than one period. Selling and
distribution overheads are divided into fixed and variable category with reference to
volume of sales. Separate budgets are prepared for variable and fixed items of selling
and distribution overheads. Certain items of selling and distribution costs as cost of
transport department are included in the departmental production cost budget from
control point of view rather that including in selling and distribution costs budget.
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PLANT UTILIZATION BUDGET:
This budget lays sown the requirements of plant capacity to carry out the
The will show the machine load in each department during the
Budget period
It will indicate the overloading on some departments, machine or group of machine
Idle capacity in some departments may be utilized by making efforts to increase the
demand for the products by providing after sale service, conducting advertisement
campaign, reducing prices, introducing lucky pries coupons, recruiting efficient sales
staff etc.
The capital expenditure budget gives an estimate of the amount of capital that
may be needed for acquiring the assets required for fulfilling production requirements
a specified in the production budget. The budget is prepared after taking into
consideration in the available productive capacities, building budget etc. The capital
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RESEARCH AND DEVELOPMENT COST BUDGET
mind that work relating to research and development is different from that relating to
Research and development witch may go on for several years. Therefore, these
budgets are established on a long term basis: say for 5 to 10 years which can be
workers are less cost conscious: so they are not susceptible to strict control. A
research and development budget is prepared taking into consideration the research
projects in hand and the new research projects in hand and the new search and
development projects to be taken up. Thus this budget provides an estimate of the
After fixation of the research and development cost budget, the research
executive fixes priorities for the various research and development projects and
committee. The projects are finally approved by the senior executive. Before giving
the approval, the expenditure on research and development is matched against the
benefits likely to be availed of from the new project; after the approval of the budget,
a close watch is kept on the expenditure so that it may not exceed budget provisions.
It is also seen that extent of progress made is commensurate with the expenditure
incurred.
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CASH (FINANCIAL) BUDGET:
In case of this method the cash receipts from various sources and the cash payments
to various agencies are estimated. In the opening balance of cash, estimated cash
receipts are added and from the total of estimated cash payments re deducted to find
In case of this method the cash budget is prepared in the basis of opening cash and
With the help of budget balances at end except cash and bank balance, a budgeted
balance sheet can be prepared and the balancing figure would be the estimated closing
cash/bank balance.
Thus under this method, closing balances, other than cash/bank will have to be found
out first to be put in the budget balance sheet. This can be done by adjusting the
anticipated.
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MASTER BUDGET (FINALISED PROFIT PLAN)
It has been defined as “a summary of the budget schedules in capsule form made for
the purpose of presenting, in one report, the highlights of the budget forecast”. The
England, is as follows :
The master budget is prepared by the budget committee in the basis of co-coordinated
functional budgets and becomes the target summaries functional budget to produce a
budgeted profit and Loss Account and a Budget Balance Sheet as at the end of the
budget period.
FIXED BUDGET:
This budget is drawn for one level of activity and one set of conditions. It has
been defined as a budget which is designed to remain unchanged irrespective of the
volume of output or turnover attained. It is rigid budget and is drawn on the
assumption that there will be no change in the budgeted level of activity. A fixed
budget will, there dour, be useful only when the actual level of activity corresponds to
the budgeted level of activity.
A master budget tailored to single output level of (say) 20,000 units of sales is
a typical example of a fixed budget. But in practice, the level of activity and set
condition will change as a result of internal limitations and external factors like
changes in demand and price shortage of materials and power, acute competition etc.
it is hardly of any use as a mechanism of budgetary control because it does not make
any distinction between fixed, variable and semi-variable costs and provides for no
adjustment in the budget fixed as result of change in cost due to change in level of
activity. It is also not helpful at all in the fixation of price and submission of tenders.
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FLEXIBLE BUDGET:
appropriately with such fluctuations. This, a flexible budget gives different budgeted
classification of all expenses between fixed, semi-variable and variable because the
usefulness of such a budget depend upon the accuracy with which the expenses can be
• Where the level of activity during the year varies from period, either due to the
seasonal nature of the industry or to variation in demand.
• Where the business is a new one and it is difficult to foresee the demand.
• Where the business units keep on introducing new products or make changes
in the its products frequently.
• Where the industries are engaged in make to order business like ship building.
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BASIC BUDGET:
A basic budget has been defined as a budget which is prepared for use
unaltered over a ling period of time. This does not take into consideration current
CURRENT BUDGET:
A current Budget can define a budget which is related to the current conditions
and is prepared for use over a short period of time. This budget is more useful than a
LONG-TERM BUDGET:
longer than a year. These budgets help in business forecasting and forward planning.
Capital Expenditure Budget and research and Development Budget are examples of
long-term budgets.
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Performance oriented budgets are established in such a manner that each item
performance of that centre. The basic issue involved in the fixation of performance
assignees responsibility, necessary for the attaining of goals and objectives of the
physical units, forecasting the amount of expenditure required to meet the amount of
expenditure required to meet the physical plan laid down and evaluation of
performance.
state As a new technique it was proposed by patter peal of Texas Instruments inc..
USA. This technique was introduced in the budgeting in the state of Georgia by Mr.
Jimmy Carter who was then the Government of that state. ZBB was tried in federal
The use of zero based budgeting s a managerial tool has become increasingly
popular since the early 1970’s It is steadily gaining acceptance in the business world
planning and control. ZBB is not based on the incremental approach and previous
year’s figures are not adopted as a bade. Rather, zero is taken as a base of the name
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As a base, a budget is developed on the basis of likely activities for the future
period. In ZBB, by declining the budget from the past, the past mistakes are not
repeated. Funds required for any for the next budget period should be obtained by
conduct business in the most efficient manner because budgets are prepared to get the
It lies down as objective for the business as a whole even though a monetary
reward is not offered the budget becomes a game –a goal to achieve or a target to
shoot at – and hence it is more likely to be achieved or hit that if there was no
predetermined goal or target. The budget is an impersonal policeman that maintains
ordered effort and brings about efficiency in result. It ensures effective utilization of
men, materials, machines and money because production is planned according to the
availability of these items.
Everyone working in the concern knows what exactly to do because budgetary control
laid emphasis on the staff organization. It ensures that individual responsibility are
clearly defined and that the required authority commensurate with the responsibility is
delegated so that buck passingay is prevented when the budgeted results are not
achieved.
Budgetary control takes the help of different levels of management in the
preparations of the budget. Budget finally approved represents the judgment of the
entire organization and not merely that of an individual or a group of individuals.
Thus, it ensures team work.
Management by exception is possible because of actual and budgeted results points
out weak spots so that remedial action is taken against week spots which are not in
conformity with the budgeted performance.
Budgetary control crates conditions for setting up a system standard costing.
policy of the business because current and future treads are studied in the preparation
of the budget.
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DISADVANTAGES OF A BUDGET:
Budget can be seen pressure devices imposed by management, thus resulting in:
2. Inaccurate record-keeping.
reconcile personal/individual and corporate goals. Waste may arise as managers adopt
the view, “we had better spend it or we will lose it”. This is often coupled with
versus controlling, i.e. some costs are under the influence of more than one person,
37
COMPANY PROFILE
GENESIS
This is the statewide enterprise of co-operatives for the dairy development. The
of farmers as its members for dairy development. Its genesis in 1981 with a three tire
Nalgonda and Rangareddy. The union is having 14 milk chilling centers in Nalgonda
cattle feed to formers of the two districts .The mother dairy was started in 1987 at
Hayath Nagar with the capacity of 2,00,000 liters per day. In 1989 an extra unit in
mother dairy was inaugurated by the humble chief minister N.T Rama Rao Garu to
supply the homogenized, thick milk with high quality. At first this unit was started as
automatic milk vending i.e., taking the milk from the factory and sending it to the
shops where they give this milk to the consumers by putting coins.
In September 1992, mother dairy was merged with’ Nalgonda, Rangareddy Co-
operation milk producers’ union ltd. And it has been named as “NARMUL”
(MOTHER DAIRY) “nalgonda- rangareddy mutual union ltd”. Presently this union is
ltd”. From 15-01-2003 and is paying highest procurement price to its members when
compared to the other union in the state. As automatic milk vending i.e., taking the
milk from the factory and sending it to the shops where they give this milk to the
38
In September 1992 , mother dairy was merged with’ Nalgonda , Rangareddy
Aied Co-operative Union ltd from 15-01-2003 and is paying highest procurement
price to its members when compared to the other union in the state.
The company during the flush section (Sep - March) and “Lean “Sean (April-Aug ) of
every year, maximum and minimum PURITY and QUALITY, which make it , trusted
Name in thousands of households. Mother dairy is the determiner people who have
The company at present linked up with Mother Dairy India ltd. From 15 th January
2005.
39
ACTIVIES OF THE COMPANY
OBJECTIVES
2. Provides essential inputs to enhance milk production, feed and fodder products
cross
breeding programmers, veterinary aid ,and take up development programs to
provide
effective leadership and managements skills to the milk producers to help them
manage their own co-operatives.
4. Fulfill the consumer needs of liquid milk and milk products in two districts new
products and packaging lines in tune with the changing scenario of consumer
market and needs.
5. Integrate dairy development with over all rural development efforts and Provide
greater employment to the rural poor.
6. Today there are 7,000 co-operatives with 300 all –women co-operatives and
membership of over 8 lakh people across two districts.
40
BRAND NAME:
Mother Dairy release its products into the markets with the brand name “Mother
Dairy’ written in white colour on blue colour four sided double lined background
The logo of the company is a laughing cow with a bell on its neck, on a milk cauldron
The films used for packing are white in four colour with their brand name –Mother
Dairy in middle followed by the milk /milk product name both in English and Telugu
and with the net weight. The also has there company logo and
MARKETED BY
Ingredients
Quantity
MRP
Best before both in Telugu and in English and a 3d symbol for symbolizing fresh and
pure.
The union is implementing various schemes for its members for improving milk
production, such as first aid, medicine, fertility, camps. Fodder development schemes,
technical assistance and insurance schemes for its members and their cattle.
41
MILK AND MILK PRODUCTS
MILK
The milk taken form various milk supplies is sent into the market in 2 different
forms.
PASTEURIZED TONED MILK
►has milk fat 3.0% and milk SNF 8.5
►best before 2days when stored under refrigeration below 8-C
►Homogenized
►available in 200ml,500ml, 1 litre also
42
BUTTER MILK
► Salted
Hayatnagar Delhi
43
►Production department
►Marketing department
►Processing department
►Personal department
►Civil department
►Transport department
►Security department
members for improving milk production and to make aware of first aid, Medicine,
fertility methods, cross breading programmers etc., through audio visual aids, vide
clippings and other appliance. They are conducting regular training programmers for
INDUSTRAIL PROFILE
44
Milk is India’s NO .1 farm of commodity in terms of its contribution to the
national economy. In 1994-95, the value of its output based producer price Rs.500051
millions exceeding that from paddy (rive). Not withstanding its top place and the
many benefits it bestows on the lower rungs of the rural society, dairying has not
received due attention from planners, economist, social scientist and others, For
example. The investment in dairying made under the 5 year plans is not commeasured
rate with its output. Consequently, its potential has not been adequately tapped.
India’s dairy market is multilayered. Its shaped like a pyramid with the base
made up of vast market for low cost milk the bulk of the demand for milk is among
the poor in urban areas whose individuals requirement is small maybe a glass full for
use has white beard for their tea and coffee. Nevertheless, it acts sizable volume
millions of liters per day. In the major cities lies an immense growth potential for
modern sectors. Presently, rarely 778 out of 3700cities and towns as served by its
pasteurized milk . According to one estimate, the packed milk segment would double
in the next 5 years, giving both estimate, the packed milk segment would in the next
five years, giving both strength and volume to the modern sector, The narrow tip at
the top is a small but an affluent market for western type milk products.
45
NATIONAL DAIRY DEVELOPMENT BOARD
ABOUT NDDB
with modernity stagnation with growth transforming dairying into an instrument for
The National Dairy Development Board was created to promote, finance and
activities seek to strengthen farmer cooperatives and support national policies that are
GENESIS
NDDB began its operations with the mission of marketing dairying a vehicle
to a better future for millions of pressrooms milk producers. The mission achieved
thrust and direction with the launching of “Operations Flood”, Operation Flood’s
third phase was completed in 1996 and has to credit a number of significant
achievements.
46
ACHIEVEMENTS
s and 15 federations procured on average 21.5 million liters of milk every day. 12.4
Since its inception, the Dairy Board has planned and spearheaded India’s Dairy
programmers by placing dairy development in the hands of milk producers and the
CONSTTUTION
The National Dairy Board – initially registered as a society under the Societies Act
1860 -- was merged with the erstwhile Indian Dairy Corporation, a company formed
and registered under the Companies Act 1956 , by an Act of India’s Parliament –the
NDDB Act 1987 (37 of1987), with effect from 12 October , 1987 The new body
47
Products of Indian Dairy Industry
State 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
All India 72128 75424 78286 80607 84406 86159 88082 90715
Andhra 4473 4842 5122 5521 5814 6584 6959 7252
Pradesh
Arunachal 43 45 46 42 42 46 46 48
Pradesh
Assam 719 725 667 683 682 705 727 739
Bihar 3420 3440 3252 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
Himachal 714 724 742 761 756 773 786 870
Pradesh
J&K 1167 1232 1286 1321 1360 1389 1414 1422
Karntaka 3970 4231 4471 4599 4797 4539 3857 3917
Kerala 2343 2420 2532 2605 2718 2419 2111 2025
Madhya 5377 5442 5519 4761 5283 5343 5388 2206
Pradesh
Maharashtra 5193 5609 5707 5849 6094 9238 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
Nalland 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 7255 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 46
Uttar 12934 13418 14152 13857 14648 15288 15943 16512
Pradesh
West Bengal 3415 3441 3456 3471 3515 3600 3686 3790
A&N Islands 22 22 23 22 23 26 25 24
Chandigarth 43 43 42 43 43 43 44 43
D&N Haveli 4 8 8 8 8 8 8 4
48
Production in India
A commitment to help rural producers help themselves has guided the Dairy Board’s
work for mere than 40 years. This commitment has been rewarded with achievements
capita availability of milk, foreign exchange savings and increased farmer incomes.
FACTS AT A GLANCE
49
Milk Production
million MT in 2005-06.
● Per capita availability of milk was 241grams per day in 2005-06, up from
● India’s 3.9 percent annual growth of milk production between 1995-96 and
2005-06 surpasses the 2 per cent growth in population; the net increase in
Marketing
liters; annual growth has averaged about 5.8 per cent compounded over the
● Dairy Cooperatives now market milk in all metros, major cities and mor than
800 towns/cities.
● during the last decade, the daily milk supply to each 1000 urban consumer has
50
Innovation
● Automatic Milk Collection Unit (AMCU) and Bulk Milk Cooler (BMC) at
51
Operation Flood Achievements
Table.2
PERSPECTIVE OF 2010
The Perspective 2010 plan of the Dairy Board maps the future of dairying in
52
India, setting realistic goals for Strengthening Cooperative business, Production
Research. The plan was realized with the successful completion of the Operation
Flood Programmer and has been developed by the Stat Milk Marketing Federations
and the Milk Producers’ Cooperative Unions in consultation with the Dairy Board,
The Perspective 2010 goals and strategies to meet them have been drawn by its actual
The aspects of India’s modern dairy sector are particularly noteworthy vast market for
dairy products are being built as disposable incomes increase. Its focus is increasingly
affluent middleclass, numbering some 300 million all most the population of the
United States which is confined to well define urban pockets and is easily accessible.
Milk occupies pride of place as the most coveted food in the diet, after wheat and rice.
Milk based sweets are culinary delight in all homes through out the years.
The milk production is predominantly rooted in the cooperative system. Its focus is in
the small rural farmer having 1 or 2 cows or buffaloes, yielding 2 or 3 liters of milk
per animal. This system is bases of operating flood, the world’s largest dairy
development programmer.
The preferred dairy animal is the buffalo. Some 65% of the world buffalo milk
produced in India. It has 30% higher total solids compare to cow milk an average of
16% vs. 12% for cow milk. Valued for its high fat content (7% vs. 3.5%), it is high
volume in calcium, phosphorus, lactose and proteins. Buffalo milk is the delight of the
53
It is growing at double the rate of consumer market
Defense market
Ingredients markets
Parlor market
The increasing away from home consumption trend opens new vistas for ready to
serve dairy products, which ride piggyback on the fast food revolution sweeping the
urban area.
India with her sizable dairy industry growing rapidly and on the path of
modernization would have palace in the sum of prosperity for many decades to come.
The one index to the statement is the fact that the projected total milk output over the
next 15 years (1995-2010) would exceed 1457.6 million tones, which is twice the
54
BUDGET ESTIMATIONS OF MOTHER DAIRY
DETAILS OF INCOME 2005-06
Table3 (RS. IN LAKHS)
S.NO PARTICULARS BUDGETED ACTUALS VARIENCE
INCOME
MILK SOLD 6771 6627 144 ADV
SELLING OF MILK
ITEMS
a)GHEE 363.67 291.1 72.57 ADV
b)CHEESE 792 709.74 82.26 ADV
c)CURD 47.45 59.8 12.35 FAV
d)SKIMMING MILK NIL 0.07 0.07 FAV
e)BUTTER MILK 03 02.84 0.16 ADV
f)MILK POWDER NIL 0.07 0.07 FAV
CATTLE FEED 238 221.5 16.5 ADV
MILKSUPPIERS SHARE 12 13.01 1.01 FAV
BUILDING RENT 11.59 14.9 3.31 FAV
OTHER INCOMES 39 36.23 2.77 ADV
BANK LOAN 400 360 40 ADV
CLOSING STOCK 101.28 25.25 76.03 ADV
55
DETAILS OF EXPENSES
BUDGETED ACTUALS VARIANCE 2005-06
TABLE4 RS. IN LAKHS
MILK PURCHASES 4400 3910.78 489.22 FAV
MILK PURCHASED FROM OTHER 1002 1046 44 FAV
UNIONS
TRANSPORT CHARGES FOR MILK 235 214 21 FAV
MILK PRODUCTS PURCHASED
A)MILK POWDER 400 460.94 60.94 ADV
B)CHEESE NIL NIL NIL
CATTLE FEED MATERIAL 180 165.27 14.73 FAV
PURCHASING BAGS FOR CATTLE FEED 8 7.88 0.12 FAV
PURCHASING OF STORES MATERIAL 40 35.51 4.49 FAV
PURCHASING OF POLYTHIN FILM NIL 252.33 252.33 ADV
A)OUR UNION 270 NIL 270 FAV
OTHER UNIONS 70 11.52 58.48 FAV
PACKING MATERIAL 15 297.91 282.91 ADV
ELECTRICITY,DIESEL CHARGES 310 48.87 261.13 FAV
REPAIRS IN PLANT AND MACHINERY 51.74 99.28 47.54 ADV
REPAIRS OF VEHICLES 105.2 14.03 91.17 FAV
MANTENANCE AND REPAIRS OF BUILDING 15 NIL 15 FAV
OFFICE REPAIRS AND MAINTENANCE
A)FURNITURS AND TYPE WRITERS 2.1 2.1 NIL FAV
B)COMPUTERS NIL NIL NIL
MAINTENANCE OF LABORATORY 98.86 98.32 0.54 FAV
ADMINISTRATION CHARGES 2 1.85 0.15 FAV
FRIGHT CHARGES 4.75 4.35 0.4 FAV
CATTLE FEED TRANSPORT NIL NIL NIL
EMPLOYEES SALARIES
a)PENSION PROVIDENT FUND 590 581.4 8.6 FAV
PRINTING AND STATIONARY 1.9 NIL 1.9 FAV
MARKETING EXPENSES 15 1.8 13.2 FAV
SALES TAX 30 14.6 15.4 FAV
CENTREL TAX 20 28.93 8.93 ADV
INCOME TAX NIL NIL NIL
AUDITOR FEES
A)FREE AUDIT FEES NIL NIL NIL
B)ANNUAL AUDIT FEE NIL NIL NIL
C)TRANSPORT EXPENSES NIL NIL NIL
CONVERSION EXPENSES
A)PIECE WORKLABOUR CHARGES 140 138.82 1.18 FAV
B) TRANSPORT CHARGES 20 15.1 4.9 FAV
VRS 20 21.24 1.24 ADV
DIVIDEND 15 15.02 0.02 ADV
OPENING STOCK NIL NIL NIL
56
Table.5
57
DETAILS OF UTILITIES 2005-06 RS. IN LAKHS
UTILITIES BUDGETED ACTUALS VARIANCE
A)ELECTRICITY CHARGES 164 157.36 6.64 FAV
B)GENERATOR DIESEL 164 29 135 FAV
C)WATER CHARGES 164 14.59 149.41 FAV
D)PERNUS OIL 164 96.96 67.04 FAV
TOTAL 656 297.91 358.09
PLANT AND MACHINERYREPAIRS
A)OIL AND LUBRICANTS 1.8 1.65 0.15 FAV
B)REPAIRS 43 39.66 3.34 FAV
C)FACTORY LICENSE FEES 0.1 0.1 NIL FAV
D)BOILER LICENSE FEES 0.04 0.04 NIL ADV
E)AMONIA GAS 0.85 0.81 0.04 FAV
F)SALT 0.55 0.52 0.03 FAV
G)PURCHASE OF SPARE PARTS 5.4 4.96 0.44 FAV
TOTAL 51.74 47.74 4 FAV
REPAIRS OF VEHICLES
A)DIESEL 85 80.37 4.63 FAV
B)OIL ANDLUBRICANTS 2.2 2.1 0.1 FAV
C)TAX INSURANCE 3.5 3.42 0.08 FAV
D)REPAIRS 14.5 13.39 1.11 FAV
TOTAL 105.2 99.28 5.92 FAV
ADMINISTRATIVE EXPENSES
1)BANK CHARGES 8.75 8.07 0.68 FAV
2)MANAGERS MEETING CHARGES 0.25 0.24 0.01 FAV
3)BOARD MEETING CHARGES 0.7 0.62 0.08 FAV
4)GENERAL BODY MEETING 1.2 1.17 0.03 ADV
EXPENSES
5)T.A,D.A 1 0.92 0.08 FAV
6)HOUSE RENT FOR CHAIRMAN 0.45 0.44 0.01 FAV
7)CASH INSURANCE NIL NIL NIL
8)INSURANCE 2 2.02 0.02 ADV
9)RENT 0.35 0.34 0.01 FAV
10)ELECTIONS EXPENSES 8 7.56 0.44 FAV
11)CAR RENT 0.4 0.45 0.05 ADV
12)MEETING EXPENSES 1.6 0.4 1.2 FAV
13)LEGAL FEES 0.09 0.09 NIL FAV
14)FESTIVAL EXPENSES 0.22 0.22 NIL FAV
15)NEWS PAPER CHARGES 0.4 0.42 0.02 ADV
16)POSTAGE 5.2 4.8 0.4 FAV
17)TELEPHONE CHARGES 0.3 0.27 0.03 ADV
18)DISTRIBUTORS MEETING 6.55 6.24 0.31 FAV
CHARGES
19)MUNCIPALTAXES 0.45 0.42 0.03 FAV
20)PURCHASE 15.5 14.4 1.1 FAV
COMMITTEECHARGES
21)PRIVATE SECURITY SALARY 5.5 5.22 0.28 ADV
22)TENDER NOTIFICATION 5.9 5.42 0.48 ADV
23)EMPLOYEES TRAVELLING 0.2 NIL 0.2 FAV
EXPENSES
24)TRAINING CHARGES 0.3 0.28 0.02 FAV
25)AUDITORS TRAVELLING NIL NIL NIL
EXPENSESE
26)STORES INSURANCE 0.7 0.69 0.01 FAV
27)STOCK INSURANCE NIL NIL NIL
28)TRANSPORT COMMITTEE 2.5 2.5 0 FAV
CHARGES
29)GENERAL LICENSE EXPENSES NIL NIL NIL
30)STAFF UNIFORM 2 1.96 0.04 FAV
31)MAY DAY EXPENSES 58 28.35 33.16 4.81 ADV
32)TYPING CHARGES NIL NIL NIL
TOTAL 98.86 98.32 0.54 FAV
MARKETING EXPENSES
A)ADVERTISMENT EXPENSES NIL NIL NIL
59
Table.6
Table.7
60
DETAILS OF PURCHASING 2005-2006 RS. IN LAKHS
BUDGETED ACTUALS VARIANCE
OFFICE EQUIPMENT
A)OFFICE 2 NIL 2 FAV
EQUIPMENT,CALCULATORS
B)PURCHASING OF COMPUTERS 2 NIL 2 FAV
C)FURNITURE ALMARAHS 0.2 NIL 0.2 FAV
DAIRY ITEMS
MILK CANS 6 4 2 FAV
MILK CRAYTES 8 8 NIL FAV
TOTAL 18.2 12 6.2 FAV
INTERPRETATION OF 2005-2006
61
INCOME:-In this year milk sold is less than budgeted and also less income generated
from the selling of milk items. Cattle feed items, milk suppliers share, building rent
are were favorable but other incomes columns showed unfavorable items which
resulted that budgeted are more than actual. So finally ended up with less income
compare to budgeted.
EXPENSES:-But in the expenses net profit gained in actuals is more because of less
in the total expenses. Other expenses such as electricity charges, purchasing bags for
cattle feed, packing material, and repairs of vehicles are also increasing compared to
concentration is on construction.
office. Dairy items like milk cans and crates are given more importance.
62
BUDGET ESTIMATIONS OF MOTHER DAIRY
DETAILS OF INCOME (2006-07)
Table.8 RS. IN LAKHS
SNO PARTICULARS BUDGETED ACTUALS VARIANCE
INCOME
1 MILK SOLD 4875 4804 71 ADV
2 SELLING OF MILK
ITEMS
a)GHEE 660 725 65 FAV
b)CHEESE NIL 412 412 FAV
c)CURD NIL 40 40 FAV
d)SKIMMING MILK NIL NIL NIL
e)BUTTER MILK NIL 4 4 FAV
f)MILK POWDER NIL 9 9 FAV
3 CATTLE FEED 140 223 83 FAV
4 MILK SUPPLIERS 25 20 5 ADV
SHARE
5 BUILDING RENT 10 18 8 FAV
6 OTHER INCOMES 20 20 NIL
7 BANK LOAN 300 380 80 FAV
8 CLOSING STOCK 780 723 57 ADV
Table.9
63
DETAILS OF EXPENSES 2006-2007 RS IN LAKHS
BUDGETED ACTUALS VARIANCE
1 MILK PURCHASES 3580 3350 230 FAV
2 MILK PURCHASED FROM OTHER UNIONS 100 315.8 215 ADV
3 TRANSPORT CHARGES FOR MILK 160 185 25 ADV
4 MILK PRODECTS PURCHASED
A)MILK POWDER 300 537 237 ADV
B)CHEESE NIL NIL NIL
5 CATTLE FEED MATERIAL 135 225 90 ADV
6 PURCHASING BAGS FOR CATTLE FEED 5 6 1 ADV
7 PURCHASING OF STORES MATERIAL 25 20 5 FAV
8 PURCHASING OF POLYTHIN FILM
A)MILK 37.5 10.6 68.5 FAV
B)GHEE 37.5 10.7 26.8 FAV
C)GHEE 37.5 3 34.5 FAV
D)BUTTER MILK 37.5 0.45 37.05 FAV
9 PACKING MATERIAL NIL 15 15 ADV
10 ELECTRICITY,DIESEL CHARGES 225 217 8 FAV
11 REPAIRS IN PLANT AND MACHINERY 50 53.7 3.7 ADV
12 REPAIRS OF VEHICLES 92 85.75 6.25 FAV
13 MAINTENANCE AND REPAIRS OF 20 20 NIL FAV
BUILDING
14 OFFICE REPAIRS AND MAINTENANCE
A)FURNITURES AND TYPEWRITERS 1 0.45 0.55 FAV
B)COMPUTERS 0.5 0.8 0.3 ADV
15 MAINTENANCE OF LABORATORY 0.3 0.1 0.2 FAV
16 ADMINISTRATION CHARGES 58.45 60.7 2.25 ADV
17 EMPLOYEES SALARIES
a)PENSION PROVIDENT FUND 450 380 70 FAV
PRINTING AND STATIONARY 8 8 NIL FAV
MARKETING EXPENSES 52 37.75 14.25 FAV
SALES TAX 10 50 40 ADV
CENTRAL TAX NIL 10 10 ADV
INCOME TAX NIL 50 50 ADV
18 AUDITOR FEES
A)FREE AUDIT FEES 2.75 2 0.75 FAV
B)ANNUAL AUDIT FEES NIL 1 1 ADV
C)TRANSPORT EXPENSES NIL NIL NIL
19 CONVERSION EXPENSES
A)PIECE WORK LABOUR CHARGES 55 80 25 ADV
B)TRANSPORT CHARGES 55 40 15 FAV
20 VRS 85 27.25 57.75 FAV
21 DIVIDEND NIL 15 15 ADV
22 OPENING STOCK 510 510 NIL ADV
TOTAL 6130 6423.45 293.45 ADV
CASH PROFIT(6180-6130) 680 954.55 274.55 ADV
23 INTEREST ON LONG TERM LOAN
A)NDDB 175 411 230 ADV
B)APCOB 350 358.55 855 ADV
24 DEPRECIATION ON BUILDING 130 115 15 FAV
TOTAL 6785 7308 523 ADV
NET PROFIT 25 70 45 ADV
Table.10
64
DETAILS OF UTILITIES 2006-07 RS. IN LAKHS
UTILITIES BUDGETED ACTUALS VARIANCE
A)ELECTRICITY CHARGES 56.25 160 103.75 ADV
B)GENERATOR DIESEL 56.25 6 50.25 FAV
C)WATER CHARGES 56.25 2.75 53.5 FAV
D)PERNUS OIL 56.25 48.25 8 FAV
TOTAL 225 217 215.5 FAV
PLANT AND
MACHINERYREPAIRS
A)OIL AND LUBRICANTS 7.14 1.25 5.84 FAV
B)REPAIRS 7.14 50 42.86 ADV
C)FACTORY LICENSE FEES 7.14 0.35 6.79 FAV
D)BOILER LICENSE FEES 7.14 0.15 6.99 FAV
E)AMONIA GAS 7.14 1.75 5.39 FAV
F)SALT 7.14 0.2 6.94 FAV
G)PURCHASE OF SPARE PARTS 7.14 NIL 7.14 FAV
TOTAL 50 53.7 3.7 ADV
REPAIRS OF VEHICLES
A)DIESEL 23 65 42 ADV
B)OIL ANDLUBRICANTS 23 1.75 21.25 FAV
C)TAX INSURANCE 23 4 19 FAV
D)REPAIRS 23 15 8 FAV
TOTAL 92 85.75 6.25 FAV
ADMINISTRATIVE EXPENSES
1)BANK CHARGES 7 6 1 FAV
2)MANAGERS MEETING 0.75 0.3 0.45 ADV
CHARGES
3)BOARD MEETING CHARGES 0.5 0.9 0.4 ADV
4)GENERAL BODY MEETING 3 1.35 1.65 FAV
EXPENSES
5)T.A,D.A 0.25 0.2 0.5 FAV
6)HOUSE RENT FOR CHAIRMAN 0.40 0.48 0.08 ADV
7)CASH INSURANCE NIL 0.45 NIL ADV
8)INSURANCE NIL 0.3 NIL ADV
9)RENT NIL 4 NIL ADV
10)ELECTIONS EXPENSES NIL 0.42 NIL ADV
11)CAR RENT 12 10 2 FAV
12)MEETING EXPENSES NIL 1.13 1.13 ADV
13)LEGAL FEES 0.5 0.75 0.25 ADV
14)FESTIVAL EXPENSES 0.1 0.11 0.01 ADV
15)NEWS PAPER CHARGES 0.2 0.17 0.03 FAV
16)POSTAGE 1 0.5 0.5 FAV
17)TELEPHONE CHARGES 5 5 NIL
18)DISTRIBUTORS MEETING NIL 0.75 0.75 ADV
CHARGES
19)MUNCIPALTAXES 6 6.25 0.25 ADV
20)PURCHASE NIL 0.5 0.5 ADV
COMMITTEECHARGES
21)PRIVATE SECURITY SALARY 11 10 1 FAV
22)TENDER NOTIFICATION NIL 1.2 1.2 ADV
23)EMPLOYEES TRAVELLING 6 4 2 FAV
65
EXPENSES
24)TRAINING CHARGES 0.2 NIL 0.2 FAV
25)AUDITORS TRAVELLING NIL 0.25 0.25 ADV
EXPENSESE
26)STORES INSURANCE NIL 0.2 0.2 ADV
27)STOCK INSURANCE NIL 0.5 0.5 ADV
28)TRANSPORT COMMITTEE NIL 0.5 0.5 ADV
CHARGES
29)GENERAL LICENSE NIL 0.24 0.24 ADV
EXPENSES
30)STAFF UNIFORM 3 3 NIL
31)MAY DAY EXPENSES 0.3 NIL 0.3 FAV
32)TYPING CHARGES 1.25 1.25 NIL FAV
TOTAL 58.45 60.7 2.25 ADV
MARKETING EXPENSES
A)ADVERTISMENT EXPENSES 5.7 5 0.7 FAV
B)AGMARK CHARGES 5.7 1 4.7 FAV
C)A.P.D.D.C.F COMMISSION 5.7 20 14.3 ADV
D)FEED TRANSPORT CHARGES 5.7 8 2.3 ADV
E)MILK TRANSPORT CHARGES 5.7 0.5 5.2 FAV
F)GHEE TRANSPORT CHARGES 5.7 NIL 5.7 FAV
G)SALES EXECUTIVE SALARIES 5.7 3 2.7 FAV
H)VENDING UNION CHARGES 5.7 0.25 5.45 FAV
I)AGENT INCENTIVES 5.7 NIL 5.7 FAV
TOTAL 52 37.75 14.25 FAV
66
Table.11
67
Table.12
DETAILS OF PURCHASING 2006-2007 RS IN LAKHS
BUGETED ACTUALS VARIANCE ADV
1 OFFICE EQUIPMENT
A)OFFICE EQUIPMENT,CALCULATORS 0.2 NIIL 0.22 FAV
B)PURCHASING OF COMPUTERS 2 .281 1.19 FAV
C)FURNITURE ALMARAHS 1 0.42 0.59 FAV
D)ELECTRONIC PUNCHMACHINE 0.5 NIL 0.5 FAV
E)CELLPHONES ,TELEPHONES 0.4 NIL 0.4 FAV
F)CASH COUNTING MACHINE 0.5 8.71 8.71 FAV
G)TOYOTA,QUALIS VEHICLES NIL 8.71 8.71 FAV
2 DAIRY ITEMS
MILK CANS 7.5 NIL 7.5 FAV
MILK CRAYTES 7.5 11.3 4.2 FAV
INTERPRETATION 2006-07
INCOMES: Under the income in this year, estimation made on milk sold is 4875
68
lakhs but actual were 4804 which is less than budgeted. But under the selling of milk
items the results were satisfactory cause the actually showed more than estimates.
EXPENSES : in this though the actual expenditure is more than is budgeted the cash
capital and the net profit increased the increase in the actual expenditure is cause
more payments made in the from of the taxes (sales , central sales & income
film .But at the is ended with net profit of 70 which is more than the budgeted (25).
CIVIL CAPITAL EXPENSES: The civil capital expenses showed the variance
returns .
budget. In the purchase of plant and machinery the actuals made less than budgeted
because the expenses are not made in expansion activities & purchasing of machinery.
Table.13
69
DETAILS OF INCOME 2007-08 RS. IN LAKHS
PARTICULARS BUDGETED ACTUALS VARIENCE
INCOME
MILK SOLD 5058 4804 254 ADV
SELLING OF MILK ITEMS
GHEE 605 725 120 FAV
CHEESE 318 412 94 FAV
CURD 40 40 NIL FAV
SKIMMING MILK 50 NIL 50 ADV
BUTTER MILK 11 4 7 ADV
MILK POWDER NIL 9 9 FAV
CATTLE FEED 198 223 25 FAV
MILK SUPPLIERS SHARE 20 20 NIL FAV
BUILDING RENT 20 18 2 ADV
OTHER INCOMES 20 20 NIL FAV
BANK LOAN 300 380 80 FAV
CLOSING STOCK 968 723 2454 ADV
70
DETAILS OF EXPENSES RS. IN LAKHS 2007-2008
Table.14
71
BUDGETED ACTUALS VARIANCE
1 MILK PURCHASES 3515 3350 165 FAV
2 MILK PURCHASED FROM OTHER 315 315.8 0.8 ADV
UNIONS
3 TRANSPORT CHARGES FOR MILK 200 185 15 FAV
4 MILK PRODUCTS PURCHASED
A)MILK POWDER 315 537 222 ADV
B)CHEESE NIL NIL NIL
5 CATTLE FEED MATERIAL 210 225 15 ADV
6 PURCHASING BAGS FOR CATTLE 8.5 6 2.5 FAV
FEED
7 PURCHASING OF STORES 25 20 5 FAV
MATERIAL
8 PURCHASING OF POLYTHIN FILM
A)MILK 110 106 4 FAV
B)GHEE 10 10.7 0.7 ADV
C)GHEE 3 3 NIL FAV
D)BUTTER MILK 1 0.45 0.55 FAV
9 PACKING MATERIAL 15 15 NIL FAV
10 ELECTRICITY,DIESEL CHARGES 240 217 23 FAV
11 REPAIRS IN PLANT AND 55 53.7 1.3 FAV
MACHINERY
12 REPAIRS OF VEHICLES 86 85.75 0.25 FAV
13 MAINTENANCE AND REPAIRS OF 20 20 NIL FAV
BUILDING
14 OFFICE REPAIRS AND
MAINTENANCE
A)FURNITURES AND TYPEWRITERS 0.5 0.45 0.05 ADV
B)COMPUTERS 0.5 0.8 0.3 FAV
15 MAINTENANCE OF LABORATORY 0.1 0.1 NIL FAV
16 ADMINISTRATION CHARGES 66.15 60.7 5.45 FAV
17 EMPLOYEES SALARIES
18 PENSION PROVIDENT FUND 400 380 20 FAV
19 PRINTING AND STATIONARY 8 8 NIL FAV
20 MARKETING EXPENSES 70 37.75 32.25 FAV
21 SALES TAX 50 50 NIL FAV
22 CENTRAL TAX 10 10 NIL FAV
23 INCOME TAX 50 50 NIL FAV
24 AUDITOR FEES
A)FREE AUDIT FEES 2 2 NIL FAV
B)ANNUAL AUDIT FEES 1 1 NIL FAV
C)TRANSPORT ERXPENSES 0.5 NIL 0.5 FAV
25 CONVERSION EXPENSES
A)PIECE WORK LABOUR CHARGES 100 80 20 FAV
B)TRANSPORT CHARGES 100 40 60 FAV
26 VRS 100 27.25 72.75 FAV
27 DIVIDEND 15 15 NIL FAV
28 OPENING STOCK 779 510 269 FAV
TOTAL 6878 6423.4 454.6 FAV
CASH PROFIT(6180-6130) 730 954.55 224.55 ADV
INTEREST ON LONG TERM LOAN
A)NDDB 140 411 271 ADV
B)APCOB 400 358.55 41.45 FAV
DEPRECIATION ON BULDING 115 115 NIL FAV
TOTAL 7533 7308 225 FAV
NET PROFIT 75 70 5 FAV
72
DETAILS OF UTILITIES 2007-08 RS. IN LAKHS
Table.15
UTILITIES BUDG VAR
ETED ACTUALS IANCE
A)ELECTRICITY CHARGES 175 160 15 FAV
B)GENERATOR DIESEL 10 6 4 FAV
C)WATER CHARGES 5 2.75 2.25 FAV
D)PERNUS OIL 50 48.25 1.75 FAV
TOTAL 240 217 23 FAV
PLANT AND MACHINERY
REPAIRS
A)OIL AND LUBRICANTS 2 1.25 0.75 FAV
B)REPAIRS 25 50 25 ADV
C)FACTORY LICENSE FEES 0.5 0.35 0.15 ADV
D)BOILER LICENSE FEES 0.25 0.15 0.1 FAV
E)AMONIA GAS 2 1.75 0.25 FAV
F)SALT 0.25 0.2 0.05 FAV
G)PURCHASE OF SPARE 25 NIL 25 FAV
PARTS
TOTAL 55 53.7 1.3 FAV
REPAIRS OF VEHICLES
A)DIESEL 65 65 NIL FAV
B)OIL AND LUBRICANTS 2 1.75 0.25 FAV
C)TAX AND INSURANCE 4 4 NIL FAV
REPAIRS 15 15 NIL FAV
TOTAL 86 85.75 0.25 FAV
ADMINISTRATIVE EXPENSES
1)BANK CHARGES 6 6 NIL FAV
2)MANAGERS MEETING 0.3 0.3 NIL FAV
CHARGES
3)BOARD MEETING CHARGES 1 0.9 0.1 FAV
4)GENERAL BODY MEETING 1.5 1.35 0.15 ADV
EXPENSES
5)T.A,D.A 0.25 0.2 0.05 ADV
6)HOUSE RENT FOR 0.48 0.48 NIL FAV
CHAIRMAN
7)CASH INSURANCE 0.45 0.45 NIL FAV
8)INSURANCE 0.3 0.3 NIL FAV
9)RENT 4 4 NIL FAV
10)ELECTIONS EXPENSES 0.45 0.42 0.03 FAV
11)CAR RENT 10 10 NIL FAV
12)MEETING EXPENSES 1.25 1.13 0.12 FAV
13)LEGAL FEES 0.75 0.75 NIL FAV
14)FESTIVAL EXPENSES 0.1 0.11 0.04 ADV
15)NEWS PAPER CHARGES 0.17 0.17 NIL FAV
16)POSTAGE 0.5 0.5 NIL FAV
17)TELEPHONE CHARGES 5 5 NIL FAV
18)DISTRIBUTORS MEETING 1 0.75 0.25 FAV
CHARGES
19)MUNCIPAL TAXES 6.5 6.25 0.25 ADV
20)PURCHSE COMMITTEE 0.5 0.5 NIL FAV
CHARGES
21)PRIVATE SECURITY 10 10 NIL FAV
SALARY
22)TENDER NOTIFICATION 1.25 1.2 0.05 ADV
23)EMPLOYEES TRAVELLING 4 4 NIL FAV
EXPENSES
24)TRAINING CHARGES 0.25 NIL 0.25 FAV
25)AUDITORS TRAVELLING 0.25 0.25 NIL FAV
EXPENSES
26)STORES INSURANCE 0.2 0.2 NIL FAV
27)STOCK INSURANCE 73 0.5 0.5 NIL FAV
28)TRANSPORT COMMITTEE 0.5 0.5 NIL FAV
CHARGES
29)GENERL LICENSE 0.25 0.24 0.01 FAV
EXPENSES
TOTAL 62.15 60.7 1.45 FAV
MARKETING EXPENSES
A)ADVERTISEMENT 15 5 10 FAV
EXPENSES
B)AGMARK CHARGES 1 1 NIL FAV
C)A.P.D.D.C.F COMMISSION 25 20 5 FAV
D)FEED TRANSPORT 10 8 2 FAV
CHARGES
E)MILK TRANSPORT 1 0.5 0.5 FAV
CHARGES
F)GHEE TRANSPORT 0.5 NIL 0.5 FAV
CHARGES
G)SALES EXCUTIVE 3 3 NIL FAV
SALARIES
H)VENDING UNION CHARGES 0.5 0.25 0.25 ADV
I)AGENT INCENTIVES 14 NIL 14 FAV
TOTAL 70 37.75 32.25 FAV
Table.16
74
DETAILS OF CIVIL CAPITAL EXPENSES 2007-08 RS. IN LAKHS
VARIAN
BUDGETED ACTUALS
CE
MILK COOLING SECTION
MALLEPALLY
A)3RD PHASE ENTERTAINMENT NIL 6.2 6.2 ADV
B)COMPOUND WALL CONSTRUCTION NIL 1.13 1.13 ADV
C)COMPRESSOR BED 1 NIL 1 FAV
MILK COOLING SECTION KODADA
A)REFRIGERATION 1.5 1.5 NIL FAV
B)OFFICE RENEVATION 1 NIL 1 FAV
MILK COOLING SECTION MOTHKUR
A)OFFICE CONSTRUCTION NIL 1.6 1.6 ADV
MILK COOLING SECTION RJAPET
A)GUEST HOUSE CONSTRUCTION NIL 1.12 1.12 ADV
MILK COOLING SECTION SURYAPET
A)COMPRESSOR BED NIL 0.67 0.67 ADV
MILK COOLING SECTION ALERU
A)FARMERS GUEST HOUSE NIL 3.65 3.65 ADV
B)BATH ROOMS NIL 1.4 1.4 ADV
C)COMPOUND WALL NIL 5.86 5.86 ADV
MILK COOLING SECTION TANDUR
A)COMPOUND WALL CONSTRUCTION NIL 0.15 0.15 ADV
MILK COOLING SECTION MAAL
A)CONSTRUCTION FOR FEED 1 NIL 1 FAV
MILK COOLING SECTION
MIRYALAGUDA
A)REFRIGERATION EXPENSES 1.5 NIL 1.5 FAV
MILK COOLING SECTION SURYAPET
A)GATE CONSTRUCTION 1 NIL 1 FAV
MOTHER DAIRY HAYATHNAGAR
A)COLD STORAGE CONSTRUCTION NIL 10 10 ADV
B)E.T. PLANT 25 NIL 25 FAV
C)FLAVOURED MILK PLANT NIL 2.43 2.43 ADV
D)COMPOUND WALL CONSTRUCTION 5 NIL 5 FAV
E)BOREWELLS 3 NIL 3 FAV
F)C.C.ROAD CONSTRUCTION 5 NIL 5 FAV
TOTAL 45 35.71 9.29 FAV
Table.17
DETAILS OF PURCHASING 2007-2008 RS IN LAKHS
BUGETED ACTUALS VARIANCE
75
1 OFFICE EQUIPMENT
A)OFFICE EQUIPMENT,CALCULATORS NIL NIL NIL
B)PURCHASING OF COMPUTERS 6 0.81 5.19 FAV
C)FURNITURE ALMARAHS NIL 0.42 0.42 ADV
D)ELECTRONIC PUNCH MACHINE NIL NIL NIL ADV
E)CELLPHONES ,TELEPHONES NIL NIL NIL ADV
F)CASH COUNTING MACHINE NIL 0.81 0.81 ADV
G)TOYOTA,QUALIS VEHICLES NIL 8.71 8.71 ADV
2 DAIRY ITEMS
MILK CANS 12 5.65 6.35 FAV
MILK CRAYTES NIL 5.65 5.65 ADV
INTERPRETATION OF 2007-08
76
INCOME:- In this year the income gained is less because of less milk sold and
income which generated from selling of milk items also less items like cheese, ghee,
EXPENSES:- The expenses showed less in actual when compare to Budgeted, thus
net profit at the end gained more. The expenses made on different items is less.
CIVIL CAPITAL EXPENSES:- In this year more importance given civil Capital
works and investment made cold storage construction & compression bed.
and some expenses made in mother dairy and milk cooling Section.
INCOME
1 MILK SOLD 5800 6240 440 FAV
2 SELLING OF MILK
ITEMS
A)GHEE 580 421 159 ADV
B)CHEESE 380 706 326 ADV
C)CURD 58 50.45 7.55 FAV
D)SKIMMING MILK 3 0.18 2.82 FAV
E)BUTTER MILK 10 4.2 5.8 FAV
3 CATTLE FEED 275 237 38 FAV
4 MILK SUPPLIERS 14 12 2 FAV
SHARE
5 BUILDING RENT 20 18 2 FAV
6 OTHER INCOMES 20 25 5 ADV
7
BANK LOANS 400 500 100 ADV
78
2 MILK PURCHASED FROM OTHER 230 1090 860 ADV
UNIONS
3 TRANSPORT CHARGES FOR MILK 200 216 16 ADV
4 MILK PRODUCTS PURCHASED
A)MILK POWDER 350 500 150 ADV
B)CHEESE NIL
5 CATTLE FEED MATERIAL 225 230 5 ADV
6 PURCHASING BAGS FOR CATTLE 9 12 3 ADV
FEED
7 PURCHASING OF STORES MATERIAL 35 50 15 ADV
8 PURCHASING OF POLYTHIN FILM 210 232 22 ADV
9 PACKING MATERIAL 15 21 6 ADV
10 ELECTRICITY,DIESEL CHARGES 255 262 7 ADV
11 REPAIRS IN PLANT AND MACHINERY 65 60 5 FAV
12 REPAIRS OF VEHICLES 98 80 18 FAV
13 MAINTENANCE AND REPAIRS OF BUILDING 30 28 2 FAV
A)FURNITURES AND TYPEWRITERS 1 2.2 1.2 ADV
B)COMPUTERS 1 1.11 0.11 ADV
14 MAINTENANCE OF LABORATORY 0.1 0.1 NIL FAV
15 ADMINISTRATION CHARGES 63.5 60 3.5 FAV
16 EMPLOYEES SALARIES
17 PENSION PROVIDENT FUND 450 532 82 ADV
18 PRINTING AND STATIONARY 8 9 1 ADV
19 MARKETING EXPENSES 44.6 14.5 30.1 FAV
20 SALES TAX 50 16 34 FAV
21 CENTRAL TAX 10 33.66 23.66 ADV
22 INCOME TAX 50 21.22 26.78 FAV
23 AUDITOR FEES
A)FREE AUDIT FEES 1.75 1.52 0.23 FAV
B)ANNUAL AUDIT FEES 1.75 1.3 0.45 FAV
C)TRANSPORT ERXPENSES 0.2 0.28 0.08 ADV
24 CONVERSION EXPENSES
A)PIECE WORK LABOUR CHARGES 100 106 06 ADV
B)TRANSPORT CHARGES 50 15 35 FAV
25 VRS 100 11.2 88.8 ADV
26 DIVIDEND 15 9.34 5.66 FAV
27 ANIMAL PURCHASE NIL 50 50 ADV
28 LONG TERM LOAN
A)SDDB 113.1 111.1 2 FAV
B)CANARA BANK 410 520 110 ADV
29 BUILDINGS,MACHINERYPURCHASE 150 135 15 FAV
TOTAL 7437 8181.53 744 ADV
NET PROFIT 123 32.3 90.7 FAV
Table.20
DETAILS OF UTILITIES 2008-2009 RS. IN LAKHS
10 UTILITIES BUDGETED ACTUALS VARIANCE
79
A)ELECTRICITY CHARGES 175 143 3.2 FAV
B)GENERATOR DIESEL 10 16 6 ADV
C)WATER CHARGES 5 17 12 ADV
D)PERNUS OIL 65 86 21 ADV
TOTAL 255 262 42.2
11 PLANT AND MACHINERY
REPAIRS
A)OIL AND LUBRICANTS 2 1.21 0.79 FAV
B)REPAIRS 30 48 2 ADV
C)FACTORY LICENSE FEES 0.5 0.5 NIL
D)BOILER LICENSE FEES NIL NIL NIL
E)AMONIA GAS 2 1.32 0.68 FAV
F)SALT 0.5 1.32 0.82 ADV
G)PURCHASE OF SPARE PARTS 30 7.65 22.35 FAV
TOTAL 65 60 5 FAV
12 REPAIRS OF VEHICLES
A)DIESEL 65 60 5 FAV
B)OIL AND LUBRICANTS 2 1.8 0.2 FAV
C)TAX AND INSURANCE 4 3.2 0.8 FAV
D)REPAIRS 15 12 3 FAV
E)RMT SPARES 7 3 4 FAV
TOTAL 93 80 13 FAV
ADMINISTRATIVE EXPENSES
1)BANK CHARGES 8 7.06 0.94 FAV
2)MANAGERS MEETING 0.25 0.23 0.02 FAV
CHARGES
3)BOARD MEETING CHARGES 1 1.9 0.9 ADV
4)GENERAL BODY MEETING 1.5 1.3 0.2 FAV
EXPENSES
5)T.A,D.A 0.35 0.18 0.17 FAV
6)HOUSE RENT FOR CHAIRMAN 0.48 0.42 0.06 FAV
7)CASH INSURANCE 0.5 NIL 0.5 FAV
8)INSURANCE 0.3 0.96 0.66 ADV
9)RENT 0.1 1.16 1.06 ADV
10)ELECTIONS EXPENSES 0.25 NIL 0.25 FAV
11)CAR RENT 10 6.43 3.57 FAV
12)MEETINGS EXPENSES 0.1 0.11 0.01 ADV
13)LEGAL FEES 1 0.7 0.3 FAV
14)FESTIVAL EXPENSES 0.1 0.03 0.07 FAV
15)NEWS PAPER CHARGES 0.2 0.16 0.04 FAV
16)POSTAGE 0.4 0.32 0.08 FAV
17)TELEPHONE CHARGES 6 4.28 1.72 FAV
18)DISTRIBUTORS MEETING 0.2 0.5 0.3 ADV
CHARGES
19)MUNCIPAL TAXES 8 7 1 FAV
20)PURCHSE COMMITTEE 0.5 0.9 0.4 ADV
CHARGES
21)PRIVATE SECURITY SALARY 11 15 4 ADV
80
22)TENDER NOTIFICATION 1.32 1.5 0.18 ADV
23)EMPLOYEES TRAVELLING 4.5 4.79 0.29 ADV
EXPENSES
24)TRAINING CHARGES 0.25 0.29 0.04 ADV
25)AUDITORS TRAVELLING 0.25 0.27 0.02 ADV
EXPENSES
26)STORES INSURANCE 0.2 NIL 0.2 FAV
27)TRANSPORT COMMITTEE 0.3 NIL 0.3 FAV
CHARGES
28)GENERAL LICENSE 0.1 NIL 0.1 FAV
EXPENSES
29)STAFF UNIFORM 2.5 2.5 NIL NIL
30)MAY DAY EXPENSES 0.25 NIL 0.25 FAV
31)TYPING CHARGES 1.35 0.65 0.75 FAV
32)GIFT PURCHASE 1.75 1.39 0.36 FAV
33)CM RELIF FUND 1 NIL 1 FAV
34)STOCK INSURANCE 1.5 NIL 1.5 FAV
TOTAL 63.5 60 3.5 FAV
MARKETING EXPENSES
A)ADVERTISEMENT EXPENSES 5 3.73 1.27 FAV
B)AGMARK CHARGES 1 1.06 0.06 ADV
C)A.P.D.D.C.F COMMISSION 25 NIL 25 FAV
D)FEED TRANSPORT CHARGES 3.5 5 1.5 ADV
E)MILK TRANSPORT CHARGES 1 NIL 1 FAV
F)GHEE TRANSPORT CHARGES 0.1 0.3 0.2 ADV
G)UNITS EXPENSES 3 NIL 3 FAV
H)AGENTS INCENTIVES 6 4.41 1.59 FAV
TOTAL 44.6 14.5 30.1 FAV
81
Table.21
82
DETAILS OF CIVIL CAPITAL EXPENSES 2008-2009 RS. IN LAKHS
BUDGETED ACTUALS VARIANCE
1 MILK COOLING SECTION
MALLEPALLY
A)COMPRESSOR BED NIL NIL NIL NIL
2 MILK COOLING SECTION KODADA
A)OFFICE CUM GUEST HOUSE NIL 4.85 4.85 ADV
B)WATER SUPPLY NIL NIL NIL NIL
3 MILK COOLING SECTION MOTHKUR
A)OFFICE EXPANSION NIL NIL NIL NIL
4 MILK COOLING SECTION BUVANAGIRI
A)CONDENSOR CONSTRUCTION NIL NIL NIL NIL
5 CATTLE FEED BUILDING
A)TANKS CONSTRUCTION NIL 9.96 9.96 ADV
B)FOUNDATION EXPENSES NIL 3.75 3.75 ADV
C)STEPS CONSTRUCTION NIL NIL NIL
6 MILK COOLING SECTION PARIGI
A)SECOND ENTERTAINMENT BUILDING NIL NIL NIL
7 MILK COOLING SECTION MAL
A)STORES ROOM CONSTRUCTION NIL 1.32 1.32 ADV
8 MOTHER DAIRY HAYATHNAGAR
IT PLANTS NIL 9.04 9.04 ADV
COMPOND WALL CONSTRUCTION NIL NIL NIL
TOILETS CONSTRUCTION NIL NIL NIL
STORES CUM LAB CONSTRUCTION NIL NIL NIL
CIVIL CAPITAL WORKS
9 A)MOTHER DAIRY NIL NIL NIL
B)MILK COOLING SECTION 65 NIL 65
TOTAL 65 28 36.12 FAV
Table.22
83
DETAILS OF PURCHASES 2008-2009 RS. IN LAKHS
BUDGETED ACTUALS VARIANCE
1 A)PURCHASE OF COMPUTERS 8 1 7 FAV
B)CELL PHONES AND TELEPHONES NIL 0.2 0.2 ADV
2 DAIRY ITEMS
MILK CANS NIL 1.7 1.7 ADV
MILK TRACKS 12 9.5 2.5 FAV
TOTAL 20 12.4 7.6 FAV
INTERPRETATION OF 2008-2009
84
INCOMES:- The income in this year shown the increase of653.83 over the
budgeted .It got more income on selling the cheese where it gained income 326 lakhs
over the budgeted and the milk sold in this is 6240 which more than the budgeted
(5800). So finally the income generated is more at the end . If the organization on best
EXPENSES: In this year all the actuals are more than the budgeted . The main effect
can be seen purchase of milk from other unions and more transportation charges ,
milk powder purchase etc . So this caused in decrease in net profit at the . If
organization consider the above and try reduce the expenses it can gain profits.
CIVIL CAPITAL EXPENSES: The expenses made of civil works showed less in
budget.
85
Table.23
DETAILS OF INCOMES (2009-10) RS. IN LAKHS
1 INCOME
MILK SOLD 6870 6627 243 ADV
2 SELLING OF MILK ITEMS
GHEE 450 291.1 158.9 ADV
CHEESE 780 709.74 70.26 ADV
CURD 65 59.8 5.2 ADV
SKIMMING MILK NIL 0.07 0.07 FAD
BUTTER MILK 5 2.84 2.16 ADV
MILK POWDER NIL 0.07 0.07 FAV
3 CTTLE FEED 242 221.5 20.5 ADV
4 MILK SUTTLIERS SHARE 13 13.01 0.01 ADV
5 BUILDING RENT 18 14.9 3.1 FAV
6 OTHER INCOMES 26 36.23 10.23 ADV
7 BANK LOAN 650 360 290 FAV
8 CLOSING STOCK NIL 25.25 25.25 ADV
86
BUDGETED ACTUA VARIAN
LS CE
1 MILK PURCHASES 4125 3910.78 214.22 FAV
MILK PURCHASED FROM OTHER UNIOBS 1175 1046 429 FAV
TRANSPORT CHARGES FOR MILK 240 214 26 FAV
2 MILK PRODECTS PURCHASES
A)MILK POWDER 650 460.94 189.06 FAV
B)CHEESE NIL NIL NIL A
3 CATTLE FEED MATERIAL 250 165.24 84.79 FAV
4 PURCHASING BAGS FOR CATTLE FEED 15 71.88 56.88 FAV
5 PURCHISING OF STORES MATERIAL 55 35.51 19.49
6 PURCHASING OF POLYTHIN FULM
A)MILK 260 252.33 7.67 FAV
B)GHEE NIL NIL NIL
87
ES
A)ELECTRICITY CHARGES 155 157.36 2.36 ADV
B)GENERATOR DIESEL 18 29 11 ADV
C)WATER CHARGES 20 14.59 5.41 FAV
D)PERNUS OIL 92 96.96 4.96 ADV
TOTAL 285 297.91 23.73 ADV
2 PLANT AND MACHINERY
REPAIRS
A) OIL AND LUBRICANTS 1.3 1.65 0.35 ADV
B)REPAIRS 49 39.66 9.34 FAV
C)FACTORY LICENSE EES 0.5 0.1 0.4 FAV
D)BOILER LICENSE FEES NIL 0.04 0.04 ADV
E)AMONIA GAS 1.5 0.81 0.69 ADV
F)SALT 1.3 0.52 0.78 ADV
G)PURCHASE OF SPARE PARTS 12.4 4.96 7.44 FAV
TOTAL 66 47.74 18.26 FAV
3 REPAIRS OF VEHICLES
A)DIESEL 63 80.37 17.37 ADV
B)LIL AND LUBRICANTS 1.5 2.1 0.6 ADV
C)TAX AND INSURANCE 2.5 3.4 0.9 ADV
D)REPAIRS 13 13.39 0.39 ADV
TOTAL 80 99.28 19.287 ADV
4 ADMISNISTRATIVE EXPENESES
1)BANK CHARGES 7.5 8.07 0.57 ADV
2)MANAGERS MEETING CHARGES 0.25 0.24 0.01 FAV
3)BOARD MEETING CHARGES 2 0.62 1.38 FAV
4)GENERAL BODY MEETING 1.7 1.17 0.53 ADV
EXPENSES
5)T.A. D.A 0.25 0.92 0.67 ADV
6)HOUSE RENT FOR CHAIRMAN 0.5 0.44 0.06 FAV
7)CASH INSURANCE 1 NIL 1 FAV
8)INSURANCE 1.2 2.02 -0.82 ADV
9)RENT 0.21 0.34 -0.13 FAV
10)ELECTIONS EXPENSES 7 7.76 -0.76 ADV
11)CAR RENT 0.1 0.45 -0.35 FAV
12)MEETING EXPENSES 1 0.4 0.6 FAV
13)LEGAL FEES 0.03 0.09 -0.06 ADV
14)FESTIVAL EXPENSES 0.16 0.22 -0.06 ADV
15)NEWS PAPER CHARGES 0.35 0.42 -0.07 ADV
16)POSTAGE 5 4.8 0.2 FAV
17TELEPHONE CHARGES 0.5 0.27 0.23 ADV
18)DISTRIBUTORS MEETING 7 6.24 0.76 FAV
CHARGESS
88
19)MUNICIPAL TAXES 0.9 0.42 0.48 FAV
25)AUDITORS TRAVELLING
EXPENSES
26)STORES INSURANCE NIL 0.69 0.69 ADV
TOTAL 65
5 MARKETING EXPENESES
A)ADVERTISENEBT EXPENSES NIL NIL NIL
B)AGMARK CHARGES 1 0.15 0.85 FAV
89
Table.26
90
Table.27
91
INTERPRETATION OF 2009-2010
INCOME: In this year the income is less when compare to the budgeted because the
income generated in all items under the heading is less Nothing haired every year
income from selling of milk items especially cheese will gain more but in this year it
EXPENSES:- In the expenses the profit generated at the end is more when compare
to budgeted. Because mainly less milk purchased from the other unions. And the other
expansion organization gave more importance and in crested in compression bed cold
92
GRAPH OF INCOMES
Figure.1
Interpretation:
In the year 2005-06 the actual amount is less compared to budgeted amount as the
budget is accurate. In the 2007-08 it shows a slight change between budgeted amount
and actually. In the year 2009-10 budgeted amount is more compared to actually it
shows that the quantity is more compared to market. Selling of milk products, share of
milk suppliers and cattle feed products are less than the estimates.
93
GRAPH OF EXPENSES
Figure.2
Interpretation:
In the year 2005-06 actual are less compared to budgeted it shows that they gained in
this year. In the year 2009-10 budget amount is more because as the milk powder,
packing material, central tax are gaining expenses compared to budget amount. In the
last year budgeted amount is more compared to actual the above products did not sold
2005-06 70 79
2006-07 30.4 35
2007-07 45 35
2008-09 65 25
2009-10 62 79
Figure.3
Interpretation:
In the year 2005-06 civil expenses are at a very high range. Actuals are high
plant and bore weeks. In the year 2007-08 actuals are less compared to budgeted
because as the expenses are less. In the year 2009-10 it incurred high volume of
SUGGESTIONS
95
As the internal resources are not sufficient to take up major modifications
revamping of the equipment covering to the requirement of strategic sector,
By taking strategic decision at appropriate time it could be able to transfer some of
organizations in cooperatives, there by avoiding payment for unused charges duly safe
For the past five years it is evident that the incomes including the scrap generated
internally is the excess of estimates. The organization must take steps to utilize the
Some welfare steps to be provided to the employees of the mother dairy so that
they can work efficiently and effectively for increase of sales in this regard.
96
BIBLOGRAPHY
WEBSITES
www.nddb.org
www.motherdairy.com
www.milkmagic.com
www.fao.org
97