Project Report On

Financial Analysis Through Comparative Balance Sheet of Verka Milk

Plant Jalandhar

In

In Partial Fulfilment of the Requirement for the

Award of Degree of

Master of Business Administration (MBA)

Submitted to: Submitted by:

Rohit Kumar Miss. Sapna

Roll No. 1812768 Assistant Professor

St. Soldier Management & Technical Institute

JALANDHAR (2018-2020)

Page
1
 ACKNOWLEDGEMENT

I am highly indebted to the management of Verka Milk Plant Jalandhar to undertake me as

training in their organization. I would like to thank specially to Mr. S. K. Sharma (General
Manager) for providing me an opportunity to undertake training at Verka Milk Plant
Jalandhar.

I wish to express my gratitude towards Mr. Vishal for permitting me to work under his
guidance and cooperation. I have no words to express my gratitude to the profound interest
taken by him at every stage of the project. His encouragement and support made my target
easily achievable. I would also like to thank other office and marketing staff of Verka Milk
Plant Jalandhar for their cooperation and helpful behavior.

I also express my sincere thanks to my parents and friends who always have been source of
inspiration to me and supported me morally and financially in every activity during the
training.

Above all I would like to thank almighty for showering his blessings to complete the project.
 PREFACE

For the completion of the MBA, it has been mandatory to obtain an Industrial Training in
Finance. This training session really help me in gathering knowledge of market.

I have prepared this project on the topic “Financial Analysis through comparative balance
sheet of Verka Milk Plant Jalandhar” in which I have written about how an organization can
manage its working capital in its daily business operations.

This report is prepared during training is life’s greatest treasure as it is full of experience,
observation and knowledge. The training held was very gainful as it took us close to real life.
This period also provides a chance to give theoretical knowledge a practical result.

This report is a result of 45 days training that I have taken at verka milk plant Jalandhar. It
has been very educative and fruitful experience for me for it has given me an insight into
some practical experience.

I wish this great organization success so it may flourish and serve the nation and have to
achieve many goals.
 STUDENT DECLARATION

I hereby declare that the summer training report entitled submitted in the partial fulfillment
of the requirement for degree of M.B.A.

To verka milk plant Jalandhar is my original work and not submitted for the award of any
other degree, diploma or any other similar title or price.

Project guide: Name:

Miss. Sapna Rohit Kumar

 CONTENTS

 Chapter 1: Introduction Indian dairy industry

 Dairy Plants
 MILKFED- PUNJAB
 Chapter 2: MILK PLANT JALANDHAR
 MANAGEMENT BOARD OF DIRECTORS
 Chapter 3: An Introduction to Financial Analysis
 Objectives and procedure of Financial Analysis
 Comparative balance sheet
 Chapter 5: Review of literature
 Chapter 4: Research and methodology
 Objectives of Research
 Chapter 6: Data analysis and interpretation
 Chapter 7: Limitations and Findings
 Chapter 8: Suggestions
 Chapter 9: Bibliography
 Chapter 10: Appendix
 CHAPTER – 1

INTRODUCTION OF INDIAN DAIRY

INDUSTRY
 INTRODUCTION

The dairy sector in the India has shown remarkable development in the past decade and India
has now become one of the largest producers of milk and value-added milk products in the
world. The dairy sector has developed through co-operatives in many parts of the State.
During 1997-98, the State had 60 milk processing plants with an aggregate processing
capacity of 6 million lack liters per day. In addition to these processing plants and 45 co-
operatives milk chilling center operate in the State.

With the increase in milk production. Maharashtra now regularly exports milk to neighboring
states. It has also initiated a free school feeding scheme, benefiting more than three million
school children from over 19,000 schools all over the State.

INDIAN DAIRY INDUSTRY

Dairy is a place where handling of milk and milk products is done, and technology refers to
the application of scientific knowledge for practical purposes. Dairy technology has been
defined as that branch of dairy science, which deals with the processing of milk and the
manufacture of milk products on an industrial scale.

In developed dairying countries such as the U.S.A., the year 1850 is seen as the dividing line
between farm and factory-scale production. Various factors contributed to this change in
these countries, viz. concentration of population in cities where jobs were plentiful, rapid
industrialization, improvement of transportation facilities, development of machines, etc.
whereas the rural areas were identified for milk production, the urban centers were selected
for the location of milk processing plants and product manufacturing factories. These plants
and factories were rapidly expanded and modernized with improved machinery and
equipment to secure the various advantages of large-scale production. Nearly all the milk in
the U.S.A. before 1900 was delivered as raw (natural) milk. Gradually farmers within easy
driving distance began delivering milk over regular routes in the cities. This was the
beginning of the fluid milk-sheds which surround the large cities of today. Prior to the 1850s
most milk was necessarily produced within a short distance of the place of consumption
because of lack of suitable means of transportation and refrigeration.
The Indian Dairy Industry has made rapid progress since Independence. A large number of
modern milk plants and product factories have since been established. These organized
dairies have been successfully engaged in the routine commercial production of pasteurized
bottled milk and various Western and Indian dairy products. With modern knowledge of the
protection of milk during transportation, it became possible to locate dairies where land was
less expensive, and crops could be grown more economically.

In India, the market milk technology may be considered to have commenced in 1950, with
the functioning of the Central Dairy of Aarey Milk Colony, and milk product technology in
1956 with the establishment of AMUL Dairy, Anand. The industry is still in its infancy and
barely 10% of our total milk production undergoes organized handling.

HISTORY OF INDIAN MARKET MILK INDUSTRY

Beginning in organized milk handling was made in India with the establishment of Military
Dairy Farms.

 Handling of milk in Co-operative Milk Unions established all over the country on a
small scale in the early stages.
 Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945
 Pasteurization and bottling of milk on a large scale for organized distribution was
started at Aare (1950), Calcutta (Herongate, 1959), Delhi (1959), World (1961),
Madras (1963) etc.

Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over
India. These were taken up with the dual object of increasing the national level of milk
consumption and ensuing better returns to the primary milk producer. Their main aim was to
produce more, better and cheaper milk.
 DAIRY INDUSTRY IN INDIA

More than 2,445 million people economically active in agriculture in the world, probably 2/3
or even more ¾ of them are wholly or partly dependent on livestock farming. India is
endowed with rich flora & Fauna & continues to be vital avenue for employment and income
generation, especially in rural areas. India, which has 66% of economically active population,
engaged in agriculture, derives 31% of Gross Domestic Product GDP from agriculture. The
share of livestock product is estimated at 21% of total agricultural sector.

Contribution of livestock sector to gross domestic product (Percentage

contribution)

1950-51 1990-91
63.5 67.0
12.0 16.0
4.1 3.1
1.3 0.3
16.5 10.0

Live stock populations:

Number of animals (in thousands)
(Source: production yearbook 1995 /FAO statistics division)

Sheeps Goats Pigs Chickens Cattle

45000 119242 11780 435 194655
Buffaloes Horses Mules Camels

Milk Production
79500 990 1742 1520

1950 – 17 million tones

1996 – 70.8 million tones

1997 – 74.3 MT

(Projected) 2020 – 240 MT

Sr. Constituents Buffalo Cow Goat Liquid skimmed milk Expected to reach-
no 220 to 250 MT – 2020
1 Moisture (gm) 81.00 87.50 86.80 92.10
India contributes to
2 Protein (gm) 4.30 3.20 3.30 2.50
world milk
3 Fat (gm) 6.50 4.10 4.50 0.10
production rise from
4 Minerals (gm) 0.80 0.80 0.80 0.70
12-15 % & it will
5 Carbohydrates (gm) 5.00 4.40 4.60 4.60
increase up to 30-
6 Energy calories (kcal) 117.00 67.00 72.00 29.00
35% (year 2020)
7 Calcium (mg) 210.00 120.00 170.00 120.00
8 Phosphorus (mg) 130.00 90.00 120.00 90.00 Milk Composition
9 Iron (mg) 0.20 0.20 0.30 0.20

Indian Buffaloes:

Two categories:

1) Riverine (depending upon variation in their habitat & genome)

2) Swamp

Swamp buffaloes: - 48 chromosomes

South East Asian countries

Stocky animals, marshy land habitat

River Buffaloes: - 50 chromosomes

- Massive in size and curled horns

- Prefer to enter clear water

 India:

Leading most buffalo populated country

78 million most of riverine

Milk production: About 95% of world buffalo milk (45.3 million tons) is produced in Asia
&Pacific, while 64.4% is produced in India (FAO.1992)

From 1950 to 1992 milk production in the world increased by 4.26%

The % of total bovines slaughtered;

Total bovine slaughtered (%)

World 17.1 to 17.4% or - 1.6% per annum

India 15% per annum

Asia 6.6%

Increasing trend of buffalo population in most of the Asian countries in Brazil and Italy

Production performance

Growth: The average birth wt. (Indian buffaloes) low 21 kg High 41 kg

Higher in male calves than in females Average daily gain of 548 gm between 3-6
months404 gm between birth to 36 months Body weight at first
calving- ranges from 367kg (Dharwati)to531kg (NiliRavi)
Higher growth rate in reverine breeds than swamp

MILK PRODUCTION

Production performance of different breeds of Buffaloes:

 DAIRY PLANTS

India's modern milk supply goes back to December 15, 1950, when the Aarey Milk Plant in
Bombay launched the supply of pasteurized and bottled milk on large-scale for the first time
in India. Subsequently, over the years, the share of the organized sector increased after the
launching of Operation Flood in 1970.

From an insignificant 200,000 liters per day (lpd) milk processing in 1951, the organized
sector is presently handling over 20 million lpd in almost 500 dairy plants. Already, one of
the world’s largest liquid milk plants is located in Delhi, handling over 800,000 liters of milk
per day (Mother Dairy, Delhi). India's first automated dairy (capacity: 1 mlpd), Mother Dairy,
Gandhinagar, was commissioned at Gandhinagar near Ahmedabad, Gujarat, in Western India.
It is owned by India’s biggest dairy cooperative group, Gujarat Cooperative Milk Marketing
Federation (GCMMF) in Anand, with an annual turnover in excess of Rs 22 billion (US $500
million) in 1999.

Dairy Plants Update: India's first vertical dairy commissioned

Amul-III with its satellite dairies at Anand in Gujarat, with total installed capacity of 1.5 tone
(capacity: 400,000 led) has been commissioned at Noida, outside Delhi, in 1999. It is owned
and managed by the Pradesh Cooperative Dairy Federation Limited, Lucknow in Uttar
Pradesh.

RESOURCES: DAIRY PLANTS

In this section Dairy plants are listed alphabetically and region wise, including liquid milk
plants and product manufacturers, both Western and indigenous, in the public, cooperative
and private sectors. The address, phone and fax numbers, list of products manufactured and
capacities and other details of these Plants can be obtained from DAIRY INDIA 1997 or from
us.

Verka - Punjab's leading milk brand

One of the leading dairy brands of North India, Verka, is yet another contribution from the
state of Punjab. The flagship brand of the Punjab State Cooperative Milk Producers'
Federation Ltd
(Milked), Verka is today enjoying the patronage of customers both within and outside the
country. Milk fed’s future programmers can never be complete without Verka.
Verka is a brand leader in milk powders particularly in northern & eastern sectors. The
Milked brand commands a premium price over milk powders manufactured by competitors,
which include multinational as well as private trade and other cooperative federations.
Milked claims that Verka has carved a niche on the basis of the sheer strength of its quality,
freshness and purity.

Milked is serving nationwide consumers through its network of Regional offices and strong
distribution channels. Milked markets a wide variety of products, which include liquid milk,
skimmed milk powder, whole milk powder, infant food, ghee, butter, cheese, lassi, SFM, ice
cream, malted food and Verka Vigor etc. The annual turnover of Milked has touched to Rs
450 crore.

Milked states that it has successfully leveraged on the brand equity of Verka to launch new
trends, needs, tastes and hopes. Verka brands included varied varieties of cheese like the
processed cheddar cheese, cheese spread, and cheese singles. There are also milk powders
like Dairy Whitener, Skimmed Milk Powder and Infant Milk Powder.

Health Drinks like Verka Vigor, Verka Lassi, Sweetened Flavored Milk and a mango drink
called Rasel have also hit the markets. Milked has now come out with Verka Curd and a
whole lot of different flavors of ice creams. Milked has also made a foray into the
international markets. They say that it was the domestic competition that drove them to alien
destinations. However, milked has already established its ghee market in the Middle East.
Verka ghee reaches all the Emirates and is available in almost all supermarkets. In addition to
ghee, SMP is also exported to Asian Countries like Philippines, Bangladesh and Sri Lanka.
Verka Malt Plus (Malted Milk food) is being exported to Bangladesh also.

With Technology Mission Programmed, ever widening markets and increasing exports,
milked is preparing itself to take Verka to greater heights. The federation has planned to
introduce more value-added products like Tetra Pack Plain Milk and low calorie lassi. It has
also sought technical assistance from the Israel Dairy Board to initiate breed improvement
and milk production enhancement programmed in the state.
 milk fed not only provides assured market to milk producers but also carries inputs to
enhance milk to their doorsteps. The District Cooperative Milk Producer's Unions and Milk
Plants have attained self-sufficiency or are on the threshold of attaining it. milk fed has
played a very vital role in providing a strong base for remunerative price to the producer; they
get more money for their milk and payments are timely. In addition, technical input services
in feeding, breeding and management are easily accessible. Value addition is one of Milk
fed’s thrust areas and the plants produce not only pasteurized, homogenized milk but also
buttermilk, cream, cheese, ice cream, butter and clarified butter-oil (ghee) and several other
products. The Milk Unions have marketed milk and milk products of the value of Rs 202.87
crore during the previous year.

It should be noted that the state government has recently announced a new project in which
78 bulk milk coolers are to be installed by the central government at the level of milk
cooperatives in the districts of Ropar, Ludhiana, Gurdaspur and Patiala under a Centrally
Sponsored Scheme. For this purpose, the Government of India has already released an
amount of Rs
143.15 lakh for the installation of 24 bulk milk coolers for implementation of this
programmed in Ropar district. This move is expected to help the farmers to produce quality
milk and get better farm gate price and consumers shall get quality milk. The budgetary
outlay for the programmed is Rs 1.41 crore. milk fed is an apex body at the state level. It has
11 Milk Unions at district level operating 10 milk plants and more than 5,000 cooperative
societies at village level with a total of 3 lakh members.

Apart from the main arena of collecting more and more milk and enrolling more and more
milk producers, milk fed and its units have a work force of about 5000 employees. Every
morning and evening milk is lifted from the villages through private vehicles - this means
regular employment to about 600 transporters, most of whom are self-employed. Some
10,000 workers man the milk procurement and technical input operations.
MILKFED-PUNJAB
 The Punjab State Cooperative Milk Producers’ Federation Limited popularly known as
MILKFED Punjab, came into existence in 1973 with a twin objective of providing
remunerative milk market to the Milk Producers in the State by value addition and marketing
of produce on one hand and to provide technical inputs to the milk producers for enhancement
of milk production on the other hand.
 it came to real self in the year 1983 when all the milk plants of the erstwhile Punjab Dairy
Development Corporation Limited were handed over to Cooperative sector and the entire State
was covered under Operation Flood to give the farmers a better deal and our valued customers
better products. Today, when we look back, we think we have fulfilled the promise to some
extent. The setup of the organization is a three-tier system, Milk Producers Cooperative
Societies at the village level, Milk Unions at District level and Federation as an Apex Body at
State level. MILKFED Punjab has continuously advanced towards its coveted objectives well
defined in its byelaws. § Home § Organization § Procurement § Products § Marketing §
Achievements § Looking Beyond

Milkfed has formulated company specifications for its milk & milk products

To provide standard and quality of products to consumers.

Milk Cheese & Paneer Drinks

Ghee & Butter Icecream & Sweets Milk Powder

Fresh Products Packing

On the basis of quality with efficient administration, MILKFED has not only established new
mile stone of providing services to Dairy farmers but scaled new heights in delighting
esteemed customers also. This has resulted into tremendous achievements in all fields.

TURNOVER:

The annual turnover of Milkfed which was Rs.1250 crores in the year 2011 has hit the level of
Rs.1438 crores in the year 2012.

turnover (in
crores)
160
0
140
0
120 turnover (in
0 crores)
100
0
800
600 2009201020112012
400
200
0
 EQUITY PARTICIPATION:

The paid-up equity of Milkfed as on 31.3.2012 was to the tune of Rs.46.86 crores which
comprises of Rs.28. crores from the cooperative members and balance Rs.17.93 crores from
State Government.

MILKFED GROWTH AT A GLANCE

PARTICULARS UNIT 2007-08 2008-09 2009-10 2010-11 2011-12

FUNCTIONAL
CUMMU.NOS. 6445 6104 6101 5989 6155
SOCIETIES
CUMMU.NOS
MEMBERSHIP 3.76 3.56 3.63 3.60 3.65
IN LACS
AVG. DAILY MILK
LKG SPD 7.45 7.81 7.82 7.78 8.21
PROC
PEAK MILK PROC LKG SPD 10.04 11.64 11.37 11.54 12.39
A.I. CLUSTER
COOMU.NOS. 323 341 388 433 504
SOCS.
FODDER SEED
M.Ts. 444.10 400.30 430.00 500.00 572.00
SUPPLIED
CATTLE FEED
M.Ts. 73724 66970 66750 73577 86174
SOLD
AVG..DAILY CITY
LLPD 4.97 5.27 5.67 5.81 6.16
SUPPLY
SALE OF SFM LAC PKTS/BTLS 30.32 35.85 42.49 41.92 61.11
SALE OF LASSI LAC PACKETS 10.54 12.20 16.89 19.16 29.51
SALE OF ICE-
LAC LITRES 9.17 10.23 12.18 15.61 17.68
CREAM
EXPORTS RS.IN LACS 698.17 1142.28 713.67 1140.35 1334.90
TURNOVER RS.IN CRORES 585.00 653.00 675.00 760.00 931.00
 MILK PROCUREMENT NETWORK:

Working on "Anand Pattern" the process of organizing societies at village level started in
Punjab as early as 1978. Presently, there is strong Network of about 6155 (as on 31.3.2008)
Milk Producers Cooperative Societies organized at village
level. About 3.65 Lakh milk producer members are
attached to these societies. Fresh milks procured from the
milk producers twice a day through village level societies
directly without the assistance of any middleman.

INPUT SERVICES:

It is one of the fundamental objectives of MILKFED to

carry out activities for promoting milk production in the
State. In view of this, various technical input services like
veterinary health care, artificial insemination services,
vaccination, supply of VERKA balanced cattle feed and quality fodder seed etc. are provided
for enhancing milk production and economic development of farming community.

CLEAN MILK PRODUCTION PROGRAMME:

For improving quality of raw milk right from milk producer's level, q massive programme
called "CMP" has been launched under which 195 Bulk Milk Coolers have been installed in
the societies and many more in pipe line. Besides, more than 1000 Automatic Milk Collection
Stations have been provided to the societies for bringing efficiency and total transparency in
the system. Traditional manual method of milk testing at society level is being replaced with
Electronic Milk Testers.

WOMEN DAIRY PROJECT:

Household level dairying is largely the domain of women especially in small and marginal
household families. In view of this fact, milk fed has undertaken Women Dairy Project in six
Milk Unions namely Hoshiarpur, Ropar, Patiala, Jalandhar, Ludhiana and Amritsar with an
objective to empower rural women in the field of dairy. This Programmed is being
implemented under Support to Training & Employment Programmed (STEP) with the
assistance of Government of India. Under this programmed, 390 women
societies with 19860 women beneficiary members will be
organized.

SETTING UP OF BIG COMMERCIAL DAIRY FARMS:

In order to enhance the milk production and making the dairy farming a profitable and
sustainable profession, milk fed has planned to
establish at least ten progressive big dairy farms in
each Milk Union by arranging soft terms loans
from the banks.

PRODUCTIVITY ENHANCEMENT PROGRAMME:

With a view to enhance milk production so as to reduce average cost per Kg. of milk
produced, milk fed and its affiliated Milk Unions are providing technical input services like
animal health care, artificial insemination services, vaccination, supply of balanced cattle
feed, supply of quality fodder seeds etc. to specific target group i.e. Milk Producers
Cooperative Members at their doorsteps.
 COMMUNITY BASED SILAGE MAKING IN KANDI AREAS:

Milkfed initiated community-based silage making to fulfill shortage of green fodder in Kandi
area of Hoshiarpur & Gurdaspur. This will ensure availability of green fodder in the shape of
Silage during scarcity period. This will help in improving milk production. 50 Silo pits of
capacity 150 M.T. each will be constructed during the year 2009-10. Rs.10.15 crore shall be
given as capital grant for construction of Silo pits, chaff cutters, weighing balance and
training.

FODDERSEED MULTIPLICATION PROGRAMME:

Non availability of quality fodder seed was a major constraint. milk fed established its own
automatic fodder seed production & processing unit at Basis Pothina of capacity - 15
MT/Day. During the year, milk fed produced 6228 quintals of quality fodder seed and during
the year more than 8000 quintals of seed will be produced.
 PROVIDING MILKING MACHINES/MILKING PARLOURS:

To upgrade milking technology, milk fed is providing milking machines/milking parlors to

dairy cooperative societies/progressive dairy farmers at 50%/25% subsidy. Till date 450
Milking Machines and 4 Milking Parlors have been provided against the target of 800
milking machines for the year 2009-10. Rs.2.00 crore have been received from Govt. of
Punjab as financial assistance. This will improve Bacteriological quality of milk, hygienic
conditions of teats of animals and reduce stress to animals/Milkers and somatic cell counts.

MARKETING & EXPORT

MILKFED PUNJAB is serving nationwide consumers through its network of Regional

Offices and strong Distribution channels. MILKFED markets a wide variety of products,
which include Liquid Milk, Skimmed Milk Powder, Whole Milk Powder, Dairy Whitener,
Ghee,
Butter, Cheese, Lassi, Tetra Pack Sweetened Flavored Milk, UHT milk in Tetra Pack, Ice
Cream, Malted Food Verka Vigor, Khoa etc. etc.

VERKA is brand leader in milk powders particularly in northern eastern sectors and
Skimmed Milk Powder marketed by milk fed commands a premium price over powders
manufactured by competitors which include multi-national as well as private trade and other
Cooperative Federations. Now Verka has arrived on the sheer strength of its quality,
freshness and purity. And of course, it’s homemade taste at the most affordable price. To
people today, Verka is the part of their daily lives.

milk fed, Punjab, is making available pasteurized milk packed and processed under hygienic
conditions at the doorsteps of the consumers. Keeping in view the modern days human stress,
strains and undernourished persons, those do not get adequate Vitamin A & D from other
sources, milk fed felt its moral responsibility to take care of their health by enriching Verka
milk with Vitamin A & D.

With competition in national market zooming up efforts to enhance export of Milk Products
have been made. milk fed has established its ghee market in Middle East market. Verka ghee
reaches all the emirates and is available almost in all the supermarkets. The penetration is so
deep that verka ghee is available in far off labor camps.

FUTURE PLANNING

Punjab is the State, which has pioneered the green revolution in the country. It is because of
the efforts of the Punjab farmers that India now occupies an enviable position of self-reliance
in respect of food grains on the World map. Consequent upon intensification of agriculture,
Punjab agriculture has now reached saturation level beyond which further growth appears to
be limited. This necessitates a fresh look at the agricultural scenario prevailing in the State so
that the Punjab farmer who is very enterprising and is receptive to new technology continues
to reap the fruits of his labor without permanent damaging his environment.

The programmed aims at bringing a voluntary shift in cropping pattern, introduction of

income/employment generating/productivity-oriented programmers directly benefiting the
farmer of Punjab. Under the programmed following schemes are proposed for Dairy
Development concerning milk fed, Punjab: -
  Milk Production and Hygienic Quality Improvement Assistance.
 Modernization of Milk Testing.
 Establishment of Method-cum-Result Demonstration Units.

In the field of dairy development, Commercialized Dairy Farming for producing more milk
round the year of high quality was felt the only solution for the viability of Dairy Industry in
the present National and International Dairy Scenario. It will help 70% rural population of
Punjab in increasing their income.

With the objective to accelerate the pace of Milk Production in the State of Punjab and to
improve the quality of milk right at the Society level and to increase the milk procurement to
have 100% capacity utilization of Milk Plants, a detailed Action Plan, vision 2004 has been
prepared jointly by Milkfed, District Milk Unions and Cooperative Department spelling out
there in the various activities to be undertaken for Dairy Development in the State of Punjab.

The broad objective of the Plan is to produce maximum milk of the best quality at the least
cost per liter, collect, store and transport it at least cost in an idle way to be of best quality
when received at Milk Plants dock to utilize it for high standard value added products to earn
maximum income and in turn paying remunerative price for raw milk to the Milk Producers.

It is hoped that with the implementation of Vision-2004 plan the number of Milk Producers
Cooperative Societies will increase to 8000 from 5840 in March-2k and the membership of
these societies will increase from 3.38 lacks in March-2k to 4.75 lacks by the end of March-
2004. Similarly, the average milk procurement will increase to 15.30 lack liters per day in the
2003-04 from 8.11 lack liters per day in 1999-2k. The detailed investment proposals have
been submitted to National dairy Development Board for funding.
 CHAPTER – 2

INTRODUCTION OF VERKA PLANT

JALANDHAR
 MILK PLANT JALANDHAR:

The Doaba Cooperative Milk Producers Union Ltd., Jalandhar was set up in the year 1972
with Regd.No.193 dated 4.11.1972 under Cooperative Sector with the financial assistance
provided by State Government and N.C.D.C. The. Doaba Milk Plant was established in the
year 1976 with a capital cost of Rs. 110 lakhs.

The primary objectives of the Union were to provide ready market to the Milk Producers for
sale of Milk in the villages through Cooperatives on the one hand and to provide wholesome
hygienic good quality processed milk and milk products to the urban consumers at
remunerative price on the other hand. The Milk Union has saved the milk producers from the
unfair trade practices of middlemen, Dodhies and Milk Contractors there by Improving their
economic condition tremendously.

The Milkshed area of Milk Union comprises districts of Jalandhar, Kapurthala and
Nawanshahr. It consists of 7 Tehsils namely Jalandhar, Nakodar, Phillaur, Kapurthala,
Sultanpur Lodhi, Phagwara and Nawanshahr covering 1834 villages in 18 blocks. It Started
with 100 Milk Producers Cooperative Societies in the year 1972 which have grown up to 846
societies having membership of 38943.

Our Union have got three chilling centers namely Sultanpur Lodhi in Kapurthala, Shahkot in
Jalandhar District and Khatkar Kalan in Nawanshahr district with capacity of milk handling
20000 LPD, 30000 LPD and 40000 LPD respectively. Moreover, Khat-Kar-Kalan is a very
famous village of Shaheed-E-Ajam S Bhagat Singh and the name of the MCC.Khatkar
Chilling Centre has been named in the memory of S. Ajit Singh uncle of Shaheed-E-Ajam S.
Bhagat Singh.
Milk Plant of the Union was initially set up in the year 1976 with a handling capacity of
50,000 liters. Milk/ day. Subsequently, the Plant was expanded in the year 1985 to 1.00 lakh
liters of milk/ day and in year 1991 to 3.00 lakh liters of milk per day besides facilities to
manufacture milk products like Ghee, Butter, Skimmed Milk Powder, Whole Milk Powder,
Dairy Whitener, Verka Vigor, Paneer, Curd, etc. The Milk products manufactured at the Plant
under the brand name “Verka” have already established good name in the market throughout
the country. Milk Union Jalandhar is also meeting the requirement of Defense Forces.

The Milk Plant has a mission to provide above stated technical support activities to each
farmer at his doorstep and to bring them out from clutches of Dojhies and other
middlemen. So many private milk plants/ milk contractors are operating in our Milkshed
area and are collecting milk. The private contractors and private milk plants allure the
farmers and bind them by giving advances and pay fewer prices for their milk produce.

An ISO-9002 and IS-15000 (HACCP) certification has been accredited to Doaba Milk Union
by the Bureau of Indian Standards on dated 16.5.2000.This endeavor to improve the overall
quality of its product and services on line of Total Quality Management was further
recognized by Bureau of Indian Standards by conferring commendation certificate for the
prestigious Rajiv Gandhi National Quality Award ,2001.

The award was given by the Hon’ble Minister of State for Consumer Affairs & Public
Distribution Sh. Shard Yadav in a glittering ceremony on 17 th December,2002 at Vigyan
Bhawan New Delhi .By receiving this award ,the Milk Union has paralleled itself with the
Reliance Industries, Birla Cellulosic, JK tire, Tata Consultancy Services, the other award
winners of the year 2001.

The award was given by the Hon’ble Minister of State for Consumer Affairs & Public
Distribution Sh. Shard Yadav in a glittering ceremony on 17 th December,2002 at Vigyan
Bhawan New Delhi .By receiving this award ,the Milk Union has paralleled itself with the
Reliance Industries, Birla Cellulosic, JK tire, Tata Consultancy Services, the other award
winners of the year 2001.
Verka Dairy Jalandhar is a trusted vendor for supplying Verka Milk and Fresh Milk Products
to the following reputed Institutions in Jalandhar District and around. A few eminent
institutions being Central Jail (Jal),Pingala Ghar, Mayor World School, Capitol Hospital,
CRPF Lidhra, CRPF Sarai Khas, BSF Canteen, Jawahar Navodaya Vidyalaya Jalandhar and
Kapurthala, KMV College, Red Cross, SP Office (Nawanshahr), Sainik School
(Kapurthala),Army camps in Jalandhar Cantt,Sura Nussi, Adampur, Kapurthala, IVY School
(Jal),Lovely Professional University, NIT Jalandhar, GNA Institutes Jalandhar, Sant Baba
Bhag Singh Institutes, PAP Phillour, GN Enterprises, Ajit News Paper, SH Nursing and
convent school, Civil Hospitals of Jalandhar, Phillour & Nakodar, DC Office Jalandhar,
Kapurthala & Nawanshahr, KCG Institutes, Gurudwara Shri Talhan sahib, Gurudwara Raja
Sahib, and many renowned Horoeka clients like Leo Inn, Kamal Palace, Prithvi Planet,
Haveli, Hyatt Resort, JD Restaurant, I.T.B.P, Hotel Ambassador and many more.
 Products: - (BRAND-VERKA)

 Milk
 Ghee
 Skimmed Milk Powder
 Whole Milk Powder
 Table Butter
 Paneer
 Khoa
 S.F.M.
 Milk Cake
 Lassi
 Kheer
 Ice Cream

THE EXTENSION OF THE BRAND:

After winning faith of innumerable consumers, Verka did not stop. For there was a scope for
more. Changing times brought new trends, needs, tastes and hopes. Verka dynamic as ever,
too acquired newer forms. By adding value to milk to satisfy a quality conscious society. And
what success! For, consumers could have their own pick as we came up with varied varieties
of cheese like the Processed Cheddar Cheese, Cheese Spread, and cheese
Singles. And there were milk powders like Dairy Whitener, Skimmed Milk Powder and
Infant Milk Powder. Health Drinks like Verka Vigour, Verka Lassi, Sweetened Flavored
Milk and a mango drink called Raseela. Then there were Verka Curd and a whole lot of
different flavours of Ice Creams.
 Vision, Mission & Objectives

Vision

To become the most admired brand in the dairy sector and vibrant cooperative institution in
the country, facilitating inclusive growth.

Mission
Ensuring prosperity to the milk producers’ by ensuring milk procurement at remunerative
prices around the year coupled with providing quality extension services for enhancing milk
production as well as reducing costs. Ensuring quality processing of milk and production of
milk products in a clean, hygienic manner and making them available to the consumers at
reasonable prices through excellence in marketing.

Objectives

a. To ensure quality milk procurement at remunerative price coupled with improved

animal productivity for reducing cost of milk production for sustainable growth of the
milk producers
b. To provide quality extension services at the door steps of milk producers
c. To ensure Quality Assurance in procurement, processing & marketing and
enhancing efficiency in the entire value chain
d. To ensure acquisition, development and retention of competent manpower
e. To improve fiscal management by optimizing the returns on capital
f. To ensure continual modernization in the entire value chain through
effective leveraging of technology
g. To embrace innovation in the entire value chain for consumer delight
h. To ensure continual expansion of distribution
i. To enhance brand equity
 Board Of Directors

Chairman Managing Director

Sh. V.K.Singh, IAS Sh. Manjit Singh Brar, IAS
Nominee - Government of Punjab Nominee - Government of Punjab

Directors (Elected amongst dairy farmers):

Sh. Yadwinder Singh Sh. Kuldeep Singh

Amritsar Faridkot
 Sh. Amarjot Singh
Gurdaspur Sh. Harbhajan Singh
Hoshiarpur

Sh. Harpal Singh

Jalandhar Sh. Jagjit Singh Dakha
Ludhiana

Sh. Sukhjinder Singh

Sh. Sukhjinder Singh Mavi Sangrur
Patiala

Government Representatives/Nominees:

Financial Commissioner and Secretary Dept. of Animal Husbandry, Punjab

(Govt. of Punjab)
Registrar, Cooperative Societies, Punjab Dept. of Cooperatives, Punjab

Manager (C.S.), National Dairy N.D.D.B, Nominee

Development Board

Domain Experts:

Dr. A.K. Singh, Expert in Dairy

Principal Scientist Dairy Technology
Division & Head, National Dairy Research
Institute, Kernel

Dr. Harish Kumar Verma, Expert in Animal Husbandry

Director of Extension Education, Guru
Angad Dev Veterinary and Animal
Sciences University, Ludhiana

Dr. Dheeraj Kumar, Director, Indian Pb.Govt. Nominee

Institute of Management, Rohtak Expert in Marketing
Verka In Media
 CHAPTER – 3

INTRODUCTION TO TOPIC
 INTRODUCTION OF FINANCIAL ANALYSIS:

Financial statements are prepared primarily for decision making. They play a dominant role
in setting the framework of managerial decisions. But the information provided in the
financial statements is not an end in itself as no meaningful conclusions can be drawn from
these statements alone. However, the information provided in the financial statements is of
immense use in making decisions through analysis and interpretation of financial statements.
Financial analysis is the process of identifying the strengths and weaknesses of the firm by
properly establishing relationship between the items of balance sheet and profit & loss
account.

Meaning of Financial Analysis

Analysis is the process of critically examining in detailing accounting information given in

the financial statements. Analyzing financial statements is a process of evaluating
relationship between component parts of financial statements to obtain a better understanding
of firm’s position and performance. It is the process of determining financial strengths and
weaknesses of the firm by establishing strategic relationship between the items of the balance
sheet, profit & loss account and other operative data. The analysis of financial statements thus
refers to the treatment of the information contained in the financial statements in a way so as
to afford a full diagnosis of the profitability and financial position of the firm concerned. For
this purpose financial statements are classified methodically, analyzed and compared with the
figures of previous years or other similar firms.

Definition of Financial Analysis

According to Kennedy and Memullar, “The analysis and interpretation of financial

statements are an attempt to determine the significance and meaning of the financial
statements data so that a forecast may be made of the prospects for future earnings, ability to
pay interest and debt maturities and profitability of a sound dividend policy.”
 Objective of Financial Analysis

The primary objective of financial statement analysis is to understand and diagnose the
information contained in the financial statement with a view to judge the profitability and
financial soundness of the firm, and to make forecast about future prospects of the firm.
These are the following objectives of analysis may be stated to bring out the significance of
such analysis:

 To assess the earning capacity of the firm.

 To assess the operational efficiency and managerial effectiveness.
 To assess the short term as well as long term solvency position of the firm.
 To make inter firm comparison.
 To make forecasts about future prospects of the firm.
 To assess the progress of the firm over the period of time.
 To help in decision making and control.
 To guide or determine the dividend action.
 To provide important information for granting credit.

Parties Interested in Financial Analysis

The following parties are interested in the analysis of financial statements.

 Investors
 Management
 Creditors or suppliers
 Bankers and Financial institutions
 Employees
 Government
 Trade associations
 Stock exchanges
 Economists and researchers
 Taxation authorities

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 businesspeople 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 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.
 CHAPTER - 4

REVIEW OF LITERATURE
 REVIEW OF LITERATURE
There are many studies on dairying, dairy co-operatives, socio-economic conditions of the
members of dairy co-operatives and performance of the District Co-operative Milk
Producers’ Union.

V.M. Rao (1982) in his study, “Farmers Benefit from a Modern Milk Cooperative Society”
has examined the prospects of increasing income and employment on small and marginal
farms through Milk Cooperative Society. He summarized that the percentage contribution
made to total farm income and employment by livestock production was higher on marginal
and small farms as compared to large farms.

Jawana Ram (1987) in his study, “Organization and Working of Cooperatives in Rajasthan –
A Case Study” suggested that the management of the union should hold regular meetings so
that the functioning becomes democratic and effective and the union should make necessary
arrangements to collect milk twice in a day from all the Dairy Cooperative Societies so that
the milk producers may have more milk animals and may adopt new techniques of dairy
farming.

R.M. Mattigatti and et. al. (1990) in their work, “Performance of Milk Producers’
Cooperative Societies (MPCS) in Dharwad District Karnataka – A Qualitative Analysis”
made some policy implications i.e., i) the directors of the societies should consider the
working ability of the secretary while appointing, ii) the milk routes should be cut short as far
as possible to facilitate timely milk procurement operations, iii) societies should provide
better technical and input services along with better prices and iv) the higher authorities of the
Union should see that the malpractices prevailing especially at the chilling centers are curbed
and some forward to help the societies to build sound relationship with the Union.

Rajesh Agrawal (1993) in his article, “Fund Flow Patterns in Indian Co-operatives from
1977 to 1980”, attempted a study on fund flow patterns of four different sectors viz. sugar,
dairy, spinning and primary agricultural cooperative societies (PACS) were carried out based
on “statistical statements relating to the co-operative movement in India”, published by R.B.I.
and NABARD. The study was undertaken for milk supply unions.

Kuldeep Singh and N. K. Verma (1994) in their paper, “Fluctuating in Milk Availability
and Its Impact on Procurement Cost” attempted to (i) study the fluctuations in milk
availability and estimate the cost of milk procurement and (ii) establish cost-volume
relationship and analyse the sources of scale effect in milk procurement. They remarked that
the milk union procured 1,15,32,359 kg. of milk during the co-operative year 1987-88. Cow
milk accounted for 17.61 per cent of total milk supply, the rest being buffalo milk significant
variations in milk procurement and corresponding costs during different months were observed.

Deepak B. Bhamare and Prof. V. S. Agrawal (1999) in their article, “A Study of the Capital
Structure of Dairy Co-operative in Maharashtra : A Case Study related to Dhule District” found that
the composition capital structure by sources differ for different size groups of societies, capital
structure of sample societies in aggregate as well as by their size group shows that the tendency of
larger proportion in ownership capital is over 66 per cent and rest of 34 per cent is borrowed capital,
specific fund percentage is higher as compared to other funds, borrowing from the government is one
of the most important sources of raising working capital. Further they suggested that dairy society has
increased share capital and reserves fund to increase its working capital. As soon as working capital
increases, dairy society has utilized full capacity.

Anjani Kumar et. al. (2001) in their work, “Trade in Livestock Products in India : Trends
Performance and Competitiveness” concluded that the export of meat and meat preparations
showed most stable and promising performance. To give a further boost to it, various sanitary
and phytosanitary measures should be taken up vigorously to ensure international hygienic
standards of our livestock exports particularly international competitive, domestic processing
efficiency has to be improved substantially.

V. M. Selvaraj and M. Muthu Dexivacaine (2005) in their study, “Human Resource

Development in Cooperative Milk Supply Society, Tirunelveli”, suggested that i) the
management must take responsibility to aim and equip officers and clerks, ii) salaries of the
employees must be periodically revised, iii) The superiors should grant due recognition on
the basis of a fair performance appraisal, iv) Job sharing and temporarily altered assignments
would be helpful, and v) Job satisfaction is an important factor related to aspects like job
involvement, area, organization, commitment, etc. Further they added that the management of
any institutions should conduct job satisfaction surveys at least once in two years.49 E.
Sulaiman

Vijaya Chandran Pillai (2006) in their article, “An Assessment of Quality of Services of
Dairy Cooperatives in Kerala with Special Reference to Thiruvananthapuram District” found
that even though the dairy cooperatives are rendering services they are not up to expectations.
Majority of the farmers are not satisfied with the various efforts of the societies for improving
the efficiency in the marketing of milk produced by the farmer

CHAPTER – 5

RESEARCH METHODOLOGY
 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 whether 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.

COLLECTION OF DATA

Data is obtained from important source:

 Secondary data

Secondary Data
The sources of secondary data are: -Corporative magazines
1. Manuals of various companies
2. Various publications
3. Books, magazines of particular clubs and newspapers

OBJECTIVES

The primary concern of Verka Milk Plant Jalandhar is to provide best quality and safe products and
services, achieved this quality objectives of Verka Milk Plant.

 Meet a well-defined needs use and purpose of costumer.

 Satisfy customer’s 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.

 CHAPTER – 6

DATA ANALYSIS AND INTERPRETATION

 COMPARATIVE BALANCE SHEET

2015 2016 Increase/decrease Percentage

amount
Assets
Fixed assets 9,93,20,509.34 10,22,59,723.94 (+)29,39,214.6 2.9 %

Current assets 11,04,14,541.25 12,38,81,995.77 (+)1,34,67,454.52 12.1 %

Investments 1,55,00,100.00 1,55,00,100.00 Nil 0%

Accumulated losses 19,37,34,246.13 21,53,56,963.71 (+)2,16,22,717.58 11.1 %

Loss of the year 1,79,01,905.58 1,45,36,884.77 (-)33,65,020.81 (-)18.7%

Appropriation Loss 37, 20,812.00 Nil nil nil

Total assets 44,05,92,114.30 47,15,35,668.19 (+)30943553.89 7.0 %

Liabilities & Capital 2015 2016 Increase/decrease Percentage

amount

Share capital 1,32,76,100.00 1,37,67,100.00 (+)4,91,000.00 3.6 %

Reserves and surplus 8,04,28,468.37 9,80,11,843.34 (+)1,75,83,374.97 21.8 %

Secured loans 3,07,84,483.00 3,33,31,243.00 (+)25,46,760.00 8.2 %

Current liabilities & 31,59,48,287.93 32,63,82,079.85 (+)1,04,33,791.92 3.3 %

provisions

Share stabilization 1,54,775.00 43,402.00 (-)1,11,373.00 71.9 %

Fund
Total 44,05,92,114.3 471535668.19 (+)30943553.89 7.0 %

Comparative Analysis of Assets in Data Interpretation 2014-15 to 2015-16

Q 1 Change in Fixed Assets in 2014-15 to 2015-16

2.5

1.5 East

0.5
Q 2 Change in Current Assets in 2014-15 to 2015-16

12.2

12

11.8

11.6

11.4 East

11.2

11

10.8

10.6
2014-15 2015-16
Q 3 Change in Investments in 2014-15 to 2015-16

16000000

14000000

12000000

10000000

8000000 Investments
6000000

4000000

2000000

0
2014-15 2015-16
Q 4 Change in Accumulated losses in 2014-15 to 2015-16

11.2

11

10.8

10.6

10.4 Accumulated
Losses

10.2

10

9.8

9.6
2014-15 2015-16
Q 5 Change in Appropriate loss of the year in 2014-15 to 2015-16

-17.2

-17.4

-17.6

-17.8

-18 Appropriate
loss
-18.2

-18.4

-18.6

-18.8
1st Qtr 2nd Qtr
Q 6 Total change in Total Assets in 2014-15 to 2015-16

30

25

20

15
Total Assets

10

0
2014-15 2015-16
 CHAPTER – 7

LIMITATIONS AND FINDINGS

 Limitations of the study

There are main limitations of the study. These are as follow.

1. It is very difficult to take financial statements from the company as no one gives its
correct figures.
2. There may be window dressing of the statements also.
3. As it is government institution no one has sufficient time to attend the trainees properly.
4. Without the proper help of trainer there is difficulty in analyzing statement.
5. Because of the lack of sufficient staff there is always hotchpotch of work. Everyone is
busy in his or her own work.
 Findings

 There is proper system of maintaining the records and books of accounts.

 All the payments are made in time.
 The production in Verka Milk Plant is on demand so there is no much wastage.
 Special audit inspector is there to audit the financial statements elected by government.
 The records of last years are maintained. These can be used to establish a trend
analysis. Shortcomings of organization and changes in demand can be estimated
through the comparison of last year’s records.
 The plant has its motive of social welfare and profit earning.
 Verka Milk Plant Jalandhar is the firm which is strengthening the dairy sector by
providing remunerative prices for the milk.
 The plant is running with profit from last 6 years. There are many reasons and efforts
done by the whole verka members from top management to bottom level.
 CHAPTER 8

SUGGESTIONS
 Suggestions

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.

6. Training department should be established separately for the trainees.

 CHAPTER - 9

BIBLIOGRAPHY
 Bibliography

Websites: -

 www.milkfed.nic.in
 www.milkfed.jp
 www.milkfed.org
CHAPTER – 10

APPENDIX
 Appendix

THE BALANCE SHEET OF 2015-2016

Previous year Liabilities Current year Previous year Assets Current year

(amount) (amount) (amount) (amount)

5,00,00,000.00 5,00,00,000.00
1,32,76,100.00 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 9,80,11,843.34 1,55,00,100.00 Investments 1,55,00,100.00

surplus

3,07,84,483.00 Secured loans 3,33,31,243.00 11,04,14,541.25 Current assets 12,38,81,995.71

31,59,48,287.93 Current 32,63,82,079.85 Stock in transit -

liabilities and
provision

1,54,775.00 Share 43,402.00 19,37,34,246.13 Accumulated 21,53,56,963.71

stabilization losses
fund

37,20,812.00 Appropriate -
losses

1,79,01,905.58 Loss of the year 1,45,36,884.77

44,05,92,114.30 47,15,35,668.19 44,05,92,114.30 47,15,35,668.19

 COMPARATIVE BALANCE SHEET

2015 2016 Increase/decrease Percentage

amount
Assets
Fixed assets 9,93,20,509.34 10,22,59,723.94 (+)29,39,214.6 2.9 %

Current assets 11,04,14,541.25 12,38,81,995.77 (+)1,34,67,454.52 12.1 %

Investments 1,55,00,100.00 1,55,00,100.00 Nil 0%

Accumulated losses 19,37,34,246.13 21,53,56,963.71 (+)2,16,22,717.58 11.1 %

Appropriate loss of 1,79,01,905.58 1,45,36,884.77 (-)33,65,020.81 (-)18.7%

the year

Total assets 43,68,71,302.3 47,15,35,668.19 (+)3,46,64,365.89 7.9 %

Liabilities & Capital 2015 2016 Increase/decrease Percentage

amount

Share capital 1,32,76,100.00 1,37,67,100.00 (+)4,91,000.00 3.6 %

Reserves and surplus 8,04,28,468.37 9,80,11,843.34 (+)1,75,83,374.97 21.8 %

Secured loans 3,07,84,483.00 3,33,31,243.00 (+)25,46,760.00 8.2 %

Current liabilities & 31,59,48,287.93 32,63,82,079.85 (+)1,04,33,791.92 3.3 %

provisions

Share stabilization 1,54,775.00 43,402.00 (-)1,11,373.00 71.9 %

Fund

Total 44,05,92,114.3 37,35,23,824.85 (-)6,70,68,289.45 15.2 %

 MANUFACTURING, TRADING &PROFIT & LOSS ACCOUNT OF 2015-16

Previous year Particulars Current year Previous year Particulars Current year

(amount) (amount) (amount) (amount)

7,13,42,395.80 Opening stock 8,12,58,066.00 36,81,24,938.6 Sale of milk& 37,55,13,351.1
4 7
milk products
28,66,99,619.42 Purchase of 31,64,46,682.5 32,64,995.00 Misc. income 10332870.49
milk& milk 7
products
2,36,48,275.32 Procurement 2,72,95,223.18 8,12,58,066.00 Closing stock 10,35,47,007.0
0
Expenses
57,90,158.68 Processing 71,01,192.68
expenses
2,28,33,697.78 Production 2,44,74,667.01
expenses
2,28,33,697.78 Packing 1,79,69,644.70
expenses
1,18,69,119.60 Store/Purcha-- 1,37,25,203.34
se/ Engg
expenses
4,14,73,523.80 Adman/accou 2,59,04,726.79 2,64,46,257.40 Sale on 3,01,74,528.20
nt s expenses
Consignment
Basis
2,557.00 Service Tax 4,202.00

97,77,021.75 Distribution 99,37,265.84 1,79,01,905.58 Loss for the 1,45,36,884.77

expenses
Year
27,33,803.65 Depreciation 27,11,437.89

49,69,96,162.62 53,41,04,641.6 49,69,96,162.6 53,41,04,641.6

3 2 3