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School of Management Studies

Punjabi University, Patiala.

Seminar Report

On

“COMPARATIVE BALANCE SHEET OF VERKA MILK PLANT”

Submitted to: Submitted by:

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PREFACE

“Education is not filling of pail, but the lighting of a fire”.

“Training is the ability to listen to almost anything without losing your

temper or your self confidence”.

Practical training imbibes an integral part of management studies. One

cannot merely upon the theoretical knowledge. It is to be coupled with

practical for it to be a fruitful classroom lectures make the fundamental

concept of management clear. They also facilitate the learning of

practical things. However class lectures must be correlated with

practical in the company has a significant role to play in the subject in

business management. To develop management and administrative

skill in future managers have to enhance their analytical skills, it is

necessary that they combine their classroom learning with the

knowledge of real business environment.

After liberalization myself Indian economy scene I really a buzz with

activity. Lots and lots of multinational companies are coming in with

their technical expertise and proven management concepts. Industrial

activity in Indian has become a thing to watch and I really wanted to

be of it and it was essential for me being a management student.

During this period, I have written a report about knowledge,

experienced I gained, and findings I made in course of the training.

This report has been written in simple language specifying the

organizational set up and management procedure of Verka Milk Plant,

hoshiarpur and along the comparative balance sheet of the Milk Plant.

It is difficult to elaborate everything which learned during the training

however, I have endeavored too many, comprehensive picture of

details about working in the following pages. I have accumulated the

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desired information through personal observation, study of documents

and discussions.

INDEX:-

TOPICS PAGE

S

1. EXECUTIVE SUMMARY 4-17

2. PROBLEM IDENTIFICATION

Objectives 19

3. THEORETICAL FRAMEWORK 20-24

4. RESEARCH METHODOLOGY

Data analysis & interpretation

25-26

27-39

5. LIMITATIONS 41

6. CONCLUSION

RECOMMENDATION

42

43

7. APNEXURE 45-48

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EXECUTIVE SUMMARY

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COMPANY PROFILE

The Punjab state co-operation Milk Producers Federation Ltd. popularly

known as MILK FED – PUNJAB came into existence in 1973. It was

backed by twin objective of providing remuneration milk to the market.

Although the federation was registered a lot earlier, it took the centre

stage of Punjab Diary Scenario in 1983 when all the Milk Plants of

Punjab Dairy Development Corporation Ltd. were handed over to co-

operative sector and the entire state was covered under operation

flood to give the formers better value and customers better products.

The organizational set up of MILK FED is based on three tire systems

1. Milk producer co-operative societies at Village Level (Primary Co-

operative Societies).

2. Milk Co-operative union of Districts levels (Unions).

3. Co-operative milk marketing federation as an apex body at State

Level (MILK FED).

MILK FED with its network of over 5000 village milk producers co-

operative societies and three lacs milk producers from a strong

network providing assured market to milk producers. MILK FED and its

units have a workforce of about 5000 employees and also provide

regular employment to as out 600 transporters..

CAPACITY OF PLANT: -

The plant was designed to handle 60.000 liters per day of milk drying

and 10.000 liters per day as liquid supply. Since inception of the Plant

there was no change in the handling capacity until April 1997. Due to

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good potentiality of milk in areas, efforts were always made to

enhance its handling capacity to 100.000 liters milk per day. Under the

guidance of Milk Federation Punjab, the Registrar, Cooperative

Societies Punjab, has sanctioned as sum of

Rs 140 crore from the co-operative Development Fund. These funds

are being utilized at the earliest. The loan amount should be

refundable in 5 years after moratorium period of 3 years. On expansion

the plant will handle 100,000 liters of milk per day. The registration

capacity will also increase to 1.5 lacs liters of milk per day.

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MILK PLANT NETWORK

Amritsar

Bathinda

Bassi Pathana

Chandigarh

Ferozepur

Faridkot

Hoshiarpur

Hushiarpur

JalandharLudhiana

Patiala

Ropar

Sangrur

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MILK FEDS NETWORK

Milk fed has its milk union in many districts of Punjab. Their district

unions are: -

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GOVERNMENT SUPPORT: -

Union finally functioned with share capital of Rs 10 lacs received from

government which was later on enhanced to Rs 103 lacs. Under the

operation flood, Milk Union, Hoshiarpur has received

Plant and machinery, tanker and other assets on loan cum grant basis.

A loan was given by National Dairy Development Board amounting to

Rs 109.49 lacs (70% loan and 39% grant). In the year 1990 -91 unions

has taken Rs 53 lacs from Milk Fed as short term loan to meet its

current obligation. This year N.D.D.B. has given a loan of Rs 2.5 crore

to the Union. The union gets timely fund availability of working capital

loan.

MILK PROCUREMENT AT MILK PLANT: -

The procurement system of this Milk Plant is well organized. Milk

procurement is made through Milk Producers Co-operative Societies

which are spread over whole of the hoshiarpur . Under these societies,

there are milk producer members. These members are chosen by

village level societies from each village. These members choose a

secretary who collect milk from milk producers and sell to the plant

and earn some percentage of commission. In November, 1998, there

were 603 functioned societies having 32967 milk producer members.

In November, 1999, there were 623 functional societies having 41967

milk producers’ members holding membership of Milk Plant, and

poured 1787634 kgs of milk.

In June 30, 2002 Milk Plant Hoshiarpur has 738 functional societies out

of which 493 are working. While collection of milk, the fat contents of

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milk are properly tested on order to check the quality of milk because

the price is paid according to fat contents. GERBER and MILKO Tests

are the tests applied to test protein and fat contents in milk.

CHILLING STATIONS: -

There are three chilling stations working under this plant. These are

Batala, Kahnuwan and Tugalwada.

The motive for opening these stations is to save the milk. The life of

the milk is only Five hours after it is collected. Some villages are more

away from Hoshiarpur Plant and transportation times much higher than

this time. So these stations are opened to chill the collected milk so

that the life of milk be increased against five hours.

AIR / WATER POLLUTION CONTROL: -

The pollution created by boiler’s smoke and affluent discharge is

checked as per the norms of the Punjab Pollution Control Board,

necessary devices have been installed. With the start of these

equipments, the BOD of treated water (of treatment of water) being

discharged into Municipal Sewer is less than 30 i.e. well within norms.

The treated water is used for irrigation purpose on the land of Milk

Plant. Thus there is reduction of pumping of water from Earth Strata.

The result of this is 17, 00,00

Punjab’s pride: - Ghee, lassi, panjiri, kheer

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Punjab may be flopping on fronts like health, information technology

but its flavored Verka lassi, desi ghee; ice-cream, sweetened milk,

panjiri, paneer, curd, and kheer are doing very well in the national and

international market. Milk fed, state’s leading cooperative, known for

Verka brand in and outside the country has achieved 64 per cent

growth in the sale of lassi, 37 per cent in sweetened flavored milk, 31

per cent in ghee, 21 per cent in ice cream, 70 per cent in kheer and 39

per cent in paneer last year. Desi ghee and lassi have been

traditionally strong area of Punjab.

Milk fed, that has achieved overall growth of 21 per cent last year, is in

fact expecting big increase in the milk collection in winter this year.

Owing to this reason, it has already started looking for new markets in

Delhi and elsewhere to sell milk and its products.

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

companies in milk business Yoplait group, second biggest fresh dairy

product company in the world, has approached it for long -term

partnership.

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There has been 31.08 per cent growth in milk procurement in the first

fortnight of the May known as a lean period as far as procurement of

milk is concerned. During first 12 days of May, the average

procurement of milk was 8.83 lakh kg compared to 7.01 lakh kg of

corresponding period in the last year.

Amritsar, Hoshiarpur, Patiala, Ludhiana, Ferozepur and Jalandhar

districts are doing very well with regard to the milk procurement.

Overall turnover of the Milk fed had gone up to Rs 918 crore by the end

of last financial year and it would cross Rs 1,000 crore at the end of

current year. Increase in the turnover has been to the extent of 20.9

per cent in 2009-10 compared to the previous fiscal year.

V.K. Singh, managing director, Milk fed, said the biggest challenge

before his organization was to find new markets to sell milk products.

Our plants can process milk up to 14 lakh kg per day but “we are

expecting milk procurement touching figure of 17 lakh kg during the

winter this year. Hence, we need new markets to sell milk and its

products”, he said.

Milk fed had given best price Rs 14.50 per kg cow milk and Rs 17.50

per kg for buffalo milk. “To keep dairy farmers and other milk

producers in the state motivated, we will not slash its price during the

flush season”, he said. Except Amritsar and Sangrur, all other milk

plants in cooperative sector were doing very well, he added. He said

Milk fed was in profit and would become a blue-chip organization in a

year or two.

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“Efforts made by us in enhance milk production by supporting the

setting up new dairy farms has started giving dividends”, he said.

“We are supplying milk even in Srinagar local market and also looking

to develop market in north-east such as Assam to sell milk products

especially value added ones. There was a plan to set up a plant near

Delhi because that was a biggest consumer market. Areas in which

Milk fed is not showing promise is table butter that has registered a

negative growth of 11 per cent and internal and external sale of

skimmed milk that has registered a negative growth of 24 per cent.

There are also problems on human resources front because private

sector has been keeping eye on its professionals and luring them away

by offering higher pay packets. V.K. Singh said, “We would have to

adopt the corporate pattern to higher and retain best talented persons

in milk sector to compete with private sector”.

PRODUCTS

The “Verka” range:

Fresh Milk Long shelf life milk

(UHT)

DTM Skimmed Milk

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Toned Double Toned Milk

Standard Toned Milk (Taaza)

Full Cream Cow Milk

Skimmed

Camel Milk

Fresh Milk Products Long Shelf Life Milk Products

Chaach Ghee

Lassi Cow Ghee

Dahi Table Butter

Paneer SMP

Shrikhand WMP

Icecream Cheese

Rasgulla Dairy Whitener

Flavored Milk White Butter

Mawa

Today Verka Milk Plant Hoshiarpur provides liquid milk of four type’s

name

Toned

Double toned

Standard and Gold (Full cream) and

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

shrikhand in the district of Hoshiarpur and also other grid. Its sale

tetra packs milk throughout the Punjab.

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

experienced, managerial cadre and highly motivated work force to

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provide highest quality of product and best of services to its esteemed

customers.

To further improve the efficiency and efficiency and effectiveness of

the plant performance, of Verka Milk Plant Hoshiarpur.

QUALITY POLICY

The Verka Milk Plant believes that the delighted customer is the only

key for overall development of the organization

This is achieved by:-

Educating milk products for clean milk production.

Manufacturing and supplying milk and milk products and services

of consistent quality at comparative price.

Adoptive innovate and modern technologies and system.

Developing committed workforce.

Adoption of safety and environment friendly standards with help

of application of HACCP principals.

Quality

Verka Milk Plant Hoshiarpur has got a sophisticated quality Control

Laboratory, which is equipped to carry out almost all the chemical and

bacteriological tests related with milk and milk products. The QC Lab

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also carries quality tests for various packaging material, ingredients,

and chemicals used . The service of the quality control lab is also used

for carrying our consumer awareness programs like “Dudh ka Pani Ka

Pani”. We also have facility for general public for getting their milk or

Ghee samples tested in our quality control lab free of cost.

Engineering

The lifeline of Verka Milk Plant i.e. steam, water and refrigeration is

provided and maintained by the Engineering section. Apart from this

section does regular maintenance both preventive and corrective only.

Considering the perishable nature of milk, the engineering section has

to be on its toes always.

The section is managed by will – qualified and experienced manpower,

which are at par with any professional organization

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ORGANIZATIONAL CHART

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Human Resource Development

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GeneralManager

M.R.

InchargeStoreManager

Engineering

ManagerQualityAssurance

InchargePurchase

DeputyManagerP.A.

InchargeMarketing

ManagerMilkProcurement

ChillingCenters

LocalRoutes

Chemical Testing &Packing Material

MicrobiologicalTesting

Liquid MilkTesting

Boiler

Refrigeration

Electrical

Mechanical

Dy.ManagerGhee & Powder

Dy. ManagerPaneer & Dahi

Dy. ManagerLiquid & Milk

Dy. ManagerReception & Processing

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Verka Milk Plant Hoshiarpur has always considered its staff member as

an asset. Various programs are run on continuous basis for keeping the

morale of employees high. Without the positive support of the

employees, the success story of Verka Milk Plant Hoshiarpur would not

have been possible. Yearly Get-together of all officers and employees

is one of the most important events of Verka Milk Plant Hoshiarpur.

For the last few years, more emphasis is being given on employees

‘training in the field of Attitude, Customer Relations, Positive Thinking,

Time Management, Stress Management and Team Building etc; apart

from technical subjects. Employees are being made aware of such

subjects either by nominating them to various training organizations

and workshops and seminars. Also experts are being invited to conduct

in house workshops and seminars. Verka Milk Plant Hoshiarpur has h

HRD cell also, which circulate good and readable articles to employees

for self-development.

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PROBLEM IDENTIFICATION

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OBJECTIVES

The primary concern of Verka Milk Plant Hoshiarpur is to provide best

quality and safe products and services, achieved this quality objectives

of Verka Milk Plant Hoshiarpur dairy are designed to

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.

Motivates employees for professional excellence and

participation.

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THEORETICAL FRAMEWORK

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COMPARATIVE BALANCE SHEET

A comparative balance sheet is designed to show financial differences

between several accounting periods. A balance sheet is a detailed

account of everything lost and gained financially during a certain time,

containing both physical and abstract data. A comparative balance

sheet is useful because a business can instantly compare profits and

losses between different time periods. Most businesses use

comparative balance sheets to help increase profits and functionality

of a company.

Features

A comparative balance sheet will include several different types of

accounting data. First there will be the income received and money

spent. There will also be a list of credits and debits to the company. A

list of assets and liabilities is also included. All of these factors are

necessary to see what the total worth of the company is through the

balance sheet. The comparative balance sheet allows the company or

business to see at a glance how its profits differ from one year to

another. These comparative balance sheets are aligned so that

business people can see at a glance the financial differences from year

to year.

Function

A balance sheet is designed to help keep a business or company aware

of every expense and profit that it is receiving. It also allows the

company to see which times of the year are most profitable, and which

years they did the best. This knowledge is important so that the

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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.

SWOT ANALYSIS

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STRENGTH: -

1. Minimum interference from top management in day to day

working.

2. Qualified, experienced and devoted workforce.

3. Brand name – VERKA.

4. Direct contacts with milk producers.

5. Own cattle feed plant and fodder seed grading station for

supplying certified fodder seeds.

6. Technical and financial guidance and support from Milk Fed Head

Office Chandigarh as well as National Dairy Development Dairy

Board.

7. ISO and HACCP certification.

8. Surplus created capacities.

9. Good corporate governance and socially responsible

organization.

10. Quality of available milk is very good

WEAKNESS: -

1.Highly completive markets.

2.Financial position of plant is very weak from many years.

3.Sufficient working capital is not available.

4.Stagnation in milk procurement.

OPPORTUNITIES: -

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1.Veterinary health care and breeding facilities is to be increased

for improving genetic milk yielding characters of animals.

2.Feasibility of home delivery system for city supply milk to be

exposed.

3.Diversification of land use for improving profits.

4.Innovative energy saving measures is required to bring down the

cost of production and improve profitability.

THREATS: -

1. river floods.

2.Increasing salary bills as compared to turnover.

3.WTO agreements.

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

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

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6.Continuous increase in higher rates of raw materials as

compared to comparative increase in the price realization of milk

products.

7.Lack of autonomy in functioning.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Research refers to a search for knowledge. This research defines the

problems of retailers and perception of citizens. Research comprises

defining and redefining problems, formulating hypothesis or suggested

solutions; collecting, organizing and evaluating data; making

deductions and reaching conclusions; and at last carefully testing the

conclusions to determine weather they fit the formulating hypothesis.

It presents the research design, sampling procedure, tools of

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

4.1 RESEARCH DESIGN

This research was descriptive and conclusion oriented research.

a) Descriptive Research:

The research was a descriptive research as it was concerned with

specific predictions, with narration of facts and characteristics

concerning individuals, groups or situations.

Sampling Techniques: The sampling techniques used are convenient

technique and simple random sampling technique.

Convenient Technique: A non-probability sampling technique that

attempts to obtain a sample of convenient elements. The selection

of sampling units is left primarily to the interviewer.

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COLLECTION OF DATA

Data is obtained from important source:

Secondary data

Secondary Data

The sources of secondary data are:-

1. Corporative magazines

2. Manuals of various companies

3. Various publications

Books, magazines of particular clubs and newspapers

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DATA ANALYSIS AND INTERPRETATION

PROFIT AND LOSS ACCOUNT

Profit and loss account is depicted from the Balance Sheet. According

to this account, the company comes to know about the real position of

the company by knowing that whether the company has gained or

loss. As the checking of this account reveals that profit and loss

account for the year 31.03.2013, 31.03.2014 was misrepresentation of

accounts and depicts the position which is not correct because the

plant authorities had shown appropriation loss account of Rs

49,69,96,162.62/- on 31.03.2013, Rs 53,41,04,641.63/- on 31.03.2014

in Balance Sheet by preparing separate P & L appropriation account by

the union when provision of this expenses which were increased from

2013-2014 was not made. Plant concealed net loss for the concerned

years to the tune of Rs 1, 79,01,905.58/- and Rs 1,45,36,884.77/- for

31.03.2013 and 31.03.2014 respectively by not showing as net loss for

that year.

Besides many reasons the main reason for loss as explained by the

plant authorities is running the plant in under capacity resulting high

production cost and fixed cost, low margin between

purchase/production price and sale price does not cover the various

expenditures which are incurred in procurement.

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MANUFACTURING, TRADING &PROFIT & LOSS ACCOUNT

OF2013 - 2014

Previous year

(amount)

Particulars Current year

(amount)

Previous year

(amount)

Particulars Current year

(amount)

7,13,42,395.80 Opening

stock

8,12,58,066.0

0

36,81,24,938.

64

Sale of milk&

milk

products

37,55,13,351

.17

28,66,99,619.4

2

Purchase of

milk& milk

products

31,64,46,682.

57

32,64,995.00 Misc. income 10332870.49

2,36,48,275.32 Procurement

Expenses

2,72,95,223.1

8

8,12,58,066.0

0

Closing stock 10,35,47,007

.00

57,90,158.68 Processing

expenses

71,01,192.68

2,28,33,697.78 Production

expenses

2,44,74,667.0

1

2,28,33,697.78 Packing

expenses

1,79,69,644.7

0

1,18,69,119.60 Store/

Purcha--se/

Engg

expenses

1,37,25,203.3

4

4,14,73,523.80 Admn/ 2,59,04,726.7 2,64,46,257.4 Sale on 3,01,74,528.

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accounts

expenses

9 0 Consignment

Basis

20

2,557.00 Service Tax 4,202.00

97,77,021.75 Distribution

expenses

99,37,265.84 1,79,01,905.5

8

Loss for the

Year

1,45,36,884.

77

27,33,803.65 Depreciation 27,11,437.89

49,69,96,162.6

2

53,41,04,641.

63

49,69,96,162.

62

53,41,04,641

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THE BALANCE SHEET OF

2012-13 AND 2013-14

THE BALANCE SHEET OF 2012-13

Liabilities Year 2012-13

(amount)

Assets Year 2012-13

(amount)

Share capital 1,32,76,100.00 Fixed assets 9,93,20,509.3

4

Reserves and

surplus

8,04,28,468.37 Investments 1,55,00,100.0

0

Secured loans 3,07,84,483.00 Current assets 11,04,14,541.

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Current liabilities

and provision

31,59,48,287.93 Stock in transit

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Hare stabilization

fund

1,54,775.00 Accumulated

losses

19,37,34,246.

13

Appropriate

losses

37,20,812.00

Loss of the year 1,79,01,905.5

8

Total 44,05,92,114.30 44,05,92,114.

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THE BALANCE SHEET OF 2013-14

Liabilities Year 2013-14

(amount)

Assets Year 2013-14

(amount)

Share capital 1,37,67,100.00 Fixed assets 10,225,97,23.

94

Reserves and

surplus

9,80,11,843.34 Investments 1,55,00,100.0

0

Secured loans 3,33,31,243.00 Current assets 12,38,81,995.

71

Current liabilities

and provision

32,63,82,079.85 Stock in transit -

Hare stabilization

fund

43,402.00 Accumulated

losses

21,53,56,963.

71

Appropriate

losses

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Loss of the year

Total 47,15,35,668.19 47,15,35,668.

19

Comparative Balance Sheet of

2012-13 & 2013-14

COMPARATIVE BALANCE SHEET

Assets

2013 2014 Increase/

decrease amount

Percentag

e

Fixed assets 9,93,20,509.3

4

10,22,59,723.

94

(+)29,39,214.6 2.9 %

Current assets 11,04,14,541. 12,38,81,995. (+)1,34,67,454.5 12.1 %

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25 77 2

Investments 1,55,00,100.0

0

1,55,00,100.0

0

Nil 0 %

Accumulated

losses

19,37,34,246.

13

21,53,56,963.

71

(+)2,16,22,717.5

8

11.1 %

Loss of the

year

1,79,01,905.5

8

1,45,36,884.7

7

(-)33,65,020.81 (-)18.7%

Appropriation

Loss

37, 20,812.00 Nil Nil Nil

Total assets 44,05,92,114.

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47,15,35,668.

19

(+)30943553.89 7.0 %

Liabilities &

Capital

2013 2014 Increase/

decrease amount

Percentag

e

Share capital 1,32,76,100.0

0

1,37,67,100.0

0

(+)4,91,000.00 3.6 %

Reserves and

surplus

8,04,28,468.3

7

9,80,11,843.3

4

(+)1,75,83,374.9

7

21.8 %

Secured loans 3,07,84,483.0 3,33,31,243.0 (+)25,46,760.00 8.2 %

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0 0

Current

liabilities &

provisions

31,59,48,287.

93

32,63,82,079.

85

(+)1,04,33,791.9

2

3.3 %

Share

stabilization

Fund

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

Total 44,05,92,114.

3

471535668.19 (+)30943553.89 7.0 %

RESULTS

The comparative balance sheet of the company reveals that

during 2013, there is an increase in fixed assets of Rs

9,93,20,509.34 and there is an increase in current assets of Rs

11,04,14,541.25 and there is an increase in total assets by 7.9

%. Reserve and surplus increased from Rs 8,04,28,468.37 to Rs

9,80,11,843.34 i.e. 21.8 % .

Current liabilities and provision are decreased from 44, 05,

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

is satisfactory.

Comparative Analysis of Assets in

Data Interpretation 2012-13 to

2013-14

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Q 1 Change in Fixed Assets in 2012-13 to 2013-14

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Q 2 Change in Current Assets in 2012-13 to 2013-14

Q 3 Change in Investments

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Q 4 Change in Accumulated losses

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Q 5 Change in Appropriate loss of the year in 2012-13 to 2013-14

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Q 6 Total change in Total Assets

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LIMITATIONS

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LIMITATIONS

1. Interaction with employees was difficulty as they were busy with their

work most of the time.

2. There is no measure to check out whether the information provided by

the consumers is correct or not.

3. Employees were showing least interest in giving imformation.

45

[Type text]

CONCLUSION AND

RECOMENDATIONS

46

[Type text]

Conclusion

In a dynamic and complex industrial and marketing environment,

theoretical concepts and classroom, teaching is not enough to impart

professional knowledge and skills to the future managers. In this

regard, I feel quite indebted to Management Department for providing

me with a tremendous skills and getting me exposed to the

philosophies and psychologies behind the complex corporate world and

marketing environment.

It is quite heartening to note about the successful completion of my

training and project report. But without the effort - support and co-

operation of various persons, this result may not have been possible. I

am heartily thankful to S.M SOOD manager of Accounts for their

sincere and devoted guidance during the training. I would also like to

thank all the employees of Accounts Department and all other

Departments to complete this report.

47

[Type text]

RECOMENDATION

Pandey I.M., financial management, Ninth addition, UBS

Publication New Delhi.

Mahant R.N., Management Accounting, Sahitya Bhawan

Publications, Agra

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

Publisher Dorling Kindersley India ltd.

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

Financial management, 12th edition, Pearson publisher.

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

hill companies.

Income statement and financial statement of 2009-10 as

obtained from Hoshiarpur Dairy.

Financial dailies.

Economic Times

Business Standard

48

[Type text]

Business Magazines

Business India

Business World

Internet Portals:

www.verkadairy.com

www.dairyindia.com

www.milkfeed.com

49

[Type text]

Appendix

50

[Type text]

Appendix

THE BALANCE SHEET OF2013-14

Previous

year

(amount)

5,00,00,000.

00

Liabilities Current year

(amount)

5,00,00,000.

00

Previous

year

(amount)

Assets Current year

(amount)

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 surplus

9,80,11,843.

34

1,55,00,100.

00

Investments 1,55,00,100.0

0

3,07,84,483.

00

Secured

loans

3,33,31,243.

00

11,04,14,541

.25

Current

assets

12,38,81,995.

71

31,59,48,287

.93

Current

liabilities

and

provision

32,63,82,079

.85

Stock in

transit

-

1,54,775.00 Share

stabilization

fund

43,402.00 19,37,34,246

.13

Accumulate

d losses

21,53,56,963.

71

37,20,812.00 Appropriate

losses

-

51

[Type text]

1,79,01,905.

58

Loss of the

year

1,45,36,884.7

7

44,05,92,114

.30

47,15,35,668

.19

44,05,92,114

.30

47,15,35,668.

19

52

[Type text]

COMPARATIVE BALANCE SHEET

Assets

2013 2014 Increase/

decrease amount

Percentag

e

Fixed assets 9,93,20,509.3

4

10,22,59,723.

94

(+)29,39,214.6 2.9 %

Current assets 11,04,14,541.

25

12,38,81,995.

77

(+)1,34,67,454.5

2

12.1 %

Investments 1,55,00,100.0

0

1,55,00,100.0

0

Nil 0 %

Accumulated

losses

19,37,34,246.

13

21,53,56,963.

71

(+)2,16,22,717.5

8

11.1 %

Appropriate

loss of the year

1,79,01,905.5

8

1,45,36,884.7

7

(-)33,65,020.81 (-)18.7%

Total assets 43,68,71,302.

3

47,15,35,668.

19

(+)3,46,64,365.8

9

7.9 %

Liabilities &

Capital

2013 2014 Increase/

decrease amount

Percentag

e

Share capital 1,32,76,100.0

0

1,37,67,100.0

0

(+)4,91,000.00 3.6 %

Reserves and

surplus

8,04,28,468.3

7

9,80,11,843.3

4

(+)1,75,83,374.9

7

21.8 %

Secured loans 3,07,84,483.0

0

3,33,31,243.0

0

(+)25,46,760.00 8.2 %

Current

liabilities &

provisions

31,59,48,287.

93

32,63,82,079.

85

(+)1,04,33,791.9

2

3.3 %

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

53

[Type text]

stabilization

Fund

Total 44,05,92,114.

3

37,35,23,824.

85

(-)6,70,68,289.45 15.2 %

54

[Type text]

MANUFACTURING, TRADING &PROFIT & LOSS ACCOUNT OF2013-14

Previous year

(amount)

Particulars Current year

(amount)

Previous year

(amount)

Particulars Current year

(amount)

7,13,42,395.80 Opening

stock

8,12,58,066.0

0

36,81,24,938.

64

Sale of milk&

milk

products

37,55,13,351

.17

28,66,99,619.4

2

Purchase of

milk& milk

products

31,64,46,682.

57

32,64,995.00 Misc. income 10332870.49

2,36,48,275.32 Procurement

Expenses

2,72,95,223.1

8

8,12,58,066.0

0

Closing stock 10,35,47,007

.00

57,90,158.68 Processing

expenses

71,01,192.68

2,28,33,697.78 Production

expenses

2,44,74,667.0

1

2,28,33,697.78 Packing

expenses

1,79,69,644.7

0

1,18,69,119.60 Store/

Purcha--se/

Engg

expenses

1,37,25,203.3

4

4,14,73,523.80 Admn/

accounts

expenses

2,59,04,726.7

9

2,64,46,257.4

0

Sale on

Consignment

Basis

3,01,74,528.

20

2,557.00 Service Tax 4,202.00

97,77,021.75 Distribution

expenses

99,37,265.84 1,79,01,905.5

8

Loss for the

Year

1,45,36,884.

77

27,33,803.65 Depreciation 27,11,437.89

55

[Type text]

49,69,96,162.6

2

53,41,04,641.

63

49,69,96,162.

62

53,41,04,641

.63

56