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A BRIEF INTRODUCTION TO COOPERATIVE

The socialistic system as enshrined in the constitution of India is based on the ideals of democracy and socialism. Only a movement of cooperation can fulfill the need of such an economic and social fabric. The government of India started this movement in India in 1904 with purpose of freeing the farmers from the grip of moneylenders and this movement proved to be a boom for the social and

economic development of the entire country.

HISTORICAL BACKGROUND

Markfed came into existence in the month of September, 1954 with13 members, a share capital of Rs. 54000, 3 employees and one bicycle and has today become Asias largest marketing co-operative society.

Today, this organization employs more than 2400 persons, has a network of manufacturing units, service centers and offices crisscrossing Punjab and its operations spread around the world.

OBJECTIVES OF MARKFED
The objectives of Markfed are as follows:To make arrangements for procuring, marketing/trading, processing/manufacturing of agricultural products as well as byproducts of its affiliated members and their members to their best advantage with in the country and outside the country. To find out and adopt latest technology and supply of goods on co-operative basis and to act as agent to its constituents and other persons and institutions approved by the Registrar, Co-operative Societies, Punjab. To raise funds for its own business.

MARKFED VISION
SHORT TERM Diversification/implementation of AEZs. Further bulk handling project and start execution. State of art and lab chemical analysis. LONG TERM Diversification of at least 5 lakh acres of land from Wheat, Paddy rotation. Setting up of infrastructure for export of fruits and vegetables like cold chain/ cold storages with participation and support from the government. Set up a modern processing facility with JV partners in the field of potato processing and honey processing. With the reduction in the role of MSP mechanism MARKFED would play major role in the open market trading of food grains.

ORGANIZATION STRUCTURE
Management is the backbone of the organization. Without efficient management no organization can perform its functions smoothly. Sound organization contributes greatly to the continuity and success of the enterprise. It is the framework of relationship of persons operations at various levels with vertical and horizontal dimensions. The type of organization in a company depends upon its size of technology and range of production.

MARKFED AS A TRUE FRIEND OF FARMERS

POSTING IN LEGDER

The journal provides a complete record of each transaction in chronological order. However, the ledger is still needed to provide a summary of the data relating to each account. Entries in the journal are transferred to the ledger a regular basis. The process of transferring amounts from the journal to the ledger is called posting. The ledger is usually called the book of final entry. Journal page numbers and account numbers are used as a cross reference after posting. The column for folio is meant to record the number of the page on which the relevant transaction has been journalized in the journal.

TRADING ACTIVITIES OF MARKFED

The majority of buffer stocks of wheat and rice in India are held in Punjab. Markfed alone stores around 4.4 millions tones of wheat. As one of the major procurement agencies, it also plays an important role in providing remunerative price to farmers.
30% 25% 20% 15% 10% 5% 0% Markfed Punjab India

Share of stock

PRODUCT PORTFOLIO & BUSINESS OPERATIONS

PROCESSED FOOD AND CANNERIES Markfed has set up Canneries at Jalandhar where it produces Heat and Eat products (especially curries) recipes of which have been prepared by Mr. Jaggies Kalra a chief of international repute. The product includes delicacies like Sarson Ka Saag, Dal Makhni, and Bhartha. Besides this it also produces Jams, Ketchups, and Honey etc.

BUSINESS TURNOVER

YEAR

BUSINESS TURNOVER ( IN CRORES)

2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

10055.00 9527.52 7957.36 10671.38 15468.99 18025.53 19082.14 20755.88

COMPARATIVE STATEMENT OF BUSINESS TURNOVER

25000 20000
2004-05 2005-06 2006-07 2007-08 2008-09

15000
10000 5000 0 1st Qtr

2009-10
2010-11 2011-12

PROCUREMENT OF FOODGRAINS, SEEDS, PULSES ETC.

The majority of buffer stock of wheat and rice in India are held in Punjab. Markfed alone stores around 4.4 million tons of wheat. As one of the major procurement agencies, it also plays an important role in providing remunerative price to farmers.

TESTING LABORATORIES State of art food grains testing laboratory at Ropar Analysis for protein, moisture starch, wet gluten, dry gluten, sedimentation value, hardness, color grading, hectoliter- weight, ash content, micro nutrients, amino acids, pesticides residues, alpha amylase activity of grains and flour, water absorption capacity.

DOMESTIC OPERATIONS
CANNERIES Markfed has set up canneries to produce ready to eat food products, recipes of which have been prepared by Mr. Jiggs Kalra, a chief of international repute. The products include delicacies like Sarson ka Saag, Chatpata Chana, Daal Makhni, Palak Paneer, Kari Pakoda, Rajmah, Lobia and much more under the brand name SOHNA. Punjab produces over 20 million tons of food grains with huge surplus both in wheat and rice. Despite having only 11.5% of the countrys agricultural areas, Punjab grows

CANNERIES FARM INPUTS MANDI YARDS

MANUFACTURING OPERATIONS

CATTLE FEED MANUFACTURING Markfed manufactures cattle feed at its plant at Gidderbaha and Kapurthala which have a combined annual production capacity of 63000 tones, the animal feed manufactured here is popular in Punjab, Haryana, H.P., J&K, Rajasthan and Delhi and is sold through dealers and cooperative societies.

FINANCIAL ANALYSIS
MEANING Financial analysis is the process of identifying strengths and weakness of the firm by establishing relationship between the item of the Profit & Loss Account and the Balance Sheet. By establishing relationship between components of Balance Sheet and Profit & Loss Account, it unveils the meaning and significance of various items embodied in the financial statements of a

PURPOSE OF FINANCIAL ANALYSIS

Financial analysis is used to diagnose the information contained in financial statement so as to judge the profitability and financial soundness of the firm. Nature of analysis differs depending on the purpose of analyst. Like, trade creditors are interested in the firms ability to meet their claims over short period of time. Their analysis will focus on the evaluation of firms liquidity position. Their main emphasis is on the analysis of firms present and future profitability.

Who uses these analyses?

Financial statements are used and analyzed by a different group of parties, these groups consists of people both inside and outside a business. Generally, these users are: A. Internal Users: are owners, managers, employees and other parties who are directly connected with a company: 1. Owners and managers require financial statements to make important business decisions that affect its continued operations. Financial analysis is then performed on these statements to provide management with more detailed information. These statements are also used as part of management's report to its stockholders, and it form part of the Annual Report of the company.

DISTRIBUTION OF PROFITS

After making provision for depreciation on the building, machinery, and other stocks as decided by the Board of Directors the net profits of the federation shall be disposed off in the following manner:

1.At least 10% shall be carried to the reserve fund. 2.The Registrar by general may determine such portion, not exceeding 5% of the net profits, as or special order shall be carried to cooperative education fund to be administered in accordance with the instructions from the Registrar issued from time to time.

SWOT ANALYSIS
STRENGTH Markfed has experienced staff. It has adequate infrastructure, qualified manpower, office space and computer network to support its activities. Its product Basmati and Sarson ka Saag have been well accepted in Indian and foreign markets. Main motto of the Markfed is quality assurance, which adds to its reputation and performance in Asia.

CONCLUSION
Markfed is one of the largest marketing federations in India. It has adequate infrastructure qualified manpower office space and computerized network supports activities it has wider range of product which has marketed in INDIA and foreign markets. Markfed is having a huge amount of debtors & claims recoverable. The liquidity position of Markfed is not very satisfactory. It should be (11.89:1) the ratio is quite low. The liquidity position has increased as in the year of 2010-11 is 14.35:1 and in the year 201112 is 11.89:1.

SUGGESTIONS
Markfed is a well- established Co-operative society, but still there are certain negative points, which require attention. One of the main points is that many plants are in losses and showing negligible profits. Hence Markfed should pay more attention towards increasing the profits.