APROJECT REPORT

ONINDUSTRIAL VISIT

AT

SUBMITTED ON:-

SUBMITTED TO:-V.M.PATEL COLLEGE OF MANAGEMENT STUDIES,

GANPAT UNIVERSITY,

KHERVA.

SUBMITTED BY:- PATEL ARTI K. FY B.B.A - B PATEL DIPIKA M. FY B.B.A - B PAHELIJANI KOMAL M. FY B.B.A - B V.M.PATEL COLLEGE OF MANAGEMENT STUDIES,

GANPAT UNIVERSITY, KHERVA.

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PREFACE

A practical study is an important part of the syllabus of a BBA-Second Year program. It gives us an opportunity to relate practical knowledge with real corporate situation. It also helps to improve our analytical skill, communication skill and knowledge.

We have done the project on industrial training of AMUL DAIRY. This project is totally based on secondary data. We have gathered information about marketing department, finance department, human resource department and other organizational processes from the company itself and from the internet.

In this project, we have tried to analyze financial situations in context of ratios and different organizational processes of AMUL DAIRY.

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ACKNOWLEDGEMENT

Practical training is one of the most important requirements in B.B.A.through this acknowledgement, we express our sincerer gratitude towards all those people helped in the preparation of this project, which been a leaning experience.

We are thankful to owners of the company and management for spending his valuable time with me and providing necessary information required. We are also thankful staff for their cooperative behavior.

We are also thankful to our college authorities for conducting this training I would sincerely thank our principal SHRI K.M CHUDASAMA & Prof. MR. VIPUL PATEL for imparting us and opportunity to put us In the stream of practical management. We would also like to thank our prof. for their support.

Thanking you,

Fy b.b.a -b Roll no.-124,102,79

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COMPANY PROFILE

Name of the company:-

Kaira District Co-operative Milk producers Union Ltd. Or Amul Dairy.

Address:-

Kaira District Co-operative Milk producers Union Ltd. Station Road, Anand – 388001

Date of the establishment:- 14th December, 1946.

Size of co-operation:- Large- scale co-operation

Goal:-

The main goal of the Amul dairy is to provide employment & provide milk and production item to the people.

Brand Name:- AMUL

Members:- 628566

Number Of Production Units:-

5- Anand, Mogar, Khatraj. Pune, Calcutta

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HISTORY & DEVELOPMENT

It began with a farmer in Kaira District as elsewhere in India. Derived his income almost entirely form seasonal crops the income form milk as paltry 4 could not be dependent upon. The main by years were milk traders of Polson limited a privately own company as enjoy monopoly for supply of milk from kaira to the govt’s milk scheme Bombay.

The farmer appealed to Sardar Patel a great leader at India freedom movement for help Sardar Patel advice them to market the milk through a co-operative of their own.

Due to the milk through strike by kaira farmers for 15 days not a drop of milk was sold to the traders. The Bombay milk scheme was sold to the traders. The Bombay milk scheme was assessor the situation & farmer’s demand.

Thus was born the Kaira District Co-operative Milk Producer’s Union Limited, Anand. It was formally on December 14th, 1946.

In 1958, the plant was expended to manufacture sweetened condensed milk. At the request of manufacture 40 tones milk power 720 tones of butter a day was completed in 1963.

In 1947, the union set up a plant to manufacture high protein weaning food, chocolate & malted at major, about 8 km south of Anand.

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MANAGEMENT BODY

Post of the man Name chairman Shri Ramsinh Prabhatsinh ParmarVice-Chairman Shri Gordhanbhai Ashabhai PatelDirectors Shri Shivabhai Mahijibhai Parmar

Shri Magenbhai Gokalbhai ZalaShri Navinbhai Ranchodbhai PatelShri Previnsih Fulsinh SolankiShri Previnbhai Maganbhai PatelShri Bhaijibhai Amarsinh ZalaShri Somabhai Raijibhai SolankiShri Raijibhai Devjibhai PatelSmt.Madhuben Dhamasinh ParmarSmt.Saraben BharatbhaiShri B.M. VyasShri Rajitbhai Kantibhai PatelDistrict registar

Managing Director Shri Rahul kumar

BANKERS & AUDITORS

Bankers:-

The kaira District central co-op. Bank Ltd. Corporation Bank State Bank of India UTI Bank Ltd. Bank of Maharastra Bank of Baroda

Auditors:-

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Special Auditors (milk) Milk Audit office, Anand.

ORGANIZATION CHART

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Management director

General Manager

Assistant General Manager

Manager Manager

Superintendent Manager (finance)

Officers Officers Officers

Clerks Clerks Clerks

Peons Peons Peons

PRODUCT

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1.Amul’s consumer products:-

Pestenized milk Cheese Butter Amul’s whole milk powder Condense milk Amul baby food Amul cheese Amul’s nutremul Amul lite Amul dan (Cattle food)

2.Amul chocolate:-

Amul fruit & nut Amul orange Amul milk choconate Amul butter Amul crope Amul coffee Amul crunch Amul badambar

3.Amul’s Industrial products:-

Cocoa butter Cocoa powder Cocoa mass Casem Casein

BREAD SPREADS

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Amul Butter Amul LiteLow fat, low Cholesterol Bread Spread Utterly Butterly Delicious

Delicious Table MargarineThe Delicious way to eat healthy

POWDER MILK

Amul Spray Infant Milk Food Amul Instant Full Cream MilkPowderStill, Mother's Milk is Best for your baby a dairy in your home

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Sagar Skimmed Milk Powder Sagar Tea Coffee WhitenerWhich is especially useful for diet? Preparations or for use by people On low calorie and high protein diet.

Amulya Dairy WhitenerThe Richest, Purest Dairy Whitener

FRESH MILK

Amul Fresh Milk Amul Gold MilkThis is the most hygienic milk availablein the market. Pasteurised in state-of-theartprocessing plants and pouch-packed for convenience.

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Amul Taaza Double Toned Milk Amul Lite Slim and Trim Milk

Amul Fresh Cream Amul Kool Chocolate Milk

Amul Kool Flavoured Bottled Milk Amul Kool Flavoured Tetra Pack

Amul Shakti Toned Milk Amul Masti Spiced ButtermilkAmul introduces the Best Thirst Quenching Drink

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CHEESE

Amul Pasteurised Processed Cheese Amul Cheese Spreads100% Vegetarian Cheese made Tasty Cheese Spreads in 3 great from microbial rennet flavours..

Amul Pizza Mozzarella CheesePizza cheese...makes great tasting pizzas!

FOR COOKING

Amul / Sagar Pure Ghee Cooking ButterMade from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by diaries with decades of experience.

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Amul Malai Paneer Utterly Delicious PizzaReady to cook paneer to make your favorite recipes!

DESSERTS

Amul Ice Creams Amul StricklandPremium Ice Cream made in various A delicious treat, anytime.varieties and flavours with dry fruits and nuts.

Amul Mithaee Gulab Jamuns Gulab Jamun MixPure Khoya Gulab Jamums...best served piping hot.

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PRODUCTION PLAN

1. Issuing the Raw-materials:-

As per the formula raw materials are indented form the store section to plant section.

Store superintendent issuing different ingredients to the hopper in the warehouse.

Now form the ware house different ingredients are taken to the interning conveys one by one into the plant.

2. Cleaning section:-

First materials are passed through a cleaning section. Cleaning means to remove all the useless part or particles from the

materials.

3. Batch preparation:-

As per the formula different ingredients are extracted. Form the pre-weighing brides & catty weight & collected into a contract desk weighed.

Preparation time per batch 3:50 minutes Once batch is prepared whole batch is taken to be batch mixes machine

for humongous mixing. Now his mixed batch materials section.

4. Molasses section:-

In Molasses section Molasses is added into a how of any material at certain temperature & pressure.

Molasses & dry materials is mixed in molasses mixer machine. Now this mixes materials is taken to the palletizing section.

5. Palletizing Section:-

Steam is mixed materials in feeder conditioner & passed through a pallet mills dye & Pallet form is prepared/

Now this not finished product is passed through pallet corer to costs down its temperature.

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Then finished product is taken to packaging section & powder or broken pallent 6 are taken to the direct mill for reprocess.

6. Packaging Section:-

In packaging section finished product is packs into the gunny bags with weight gross of 71.800kg 70,000kg get weight product 00.900 kg gross weight of empty gunny bags.00.900 kg gross excess feeling of finished product.

The finished product has in the invited stage a good amount of moisture to prevent the reduction of weight exess feeling is done in the since. The multitude dries cut after some time, the loss of weightier is correspondent with the exiles product.

7. Laboratory Testing:-

Also at the time of packaging sample of finished product is taken into a box.

After 100 bags that sample box is collected by laboratory for the analysis of finished product.

8. Dispatch:-

On the next day when analysis report comes to the despites section then finished product is dispatched to the village milk society.

C.F.F Kanjari comprises of two units of plant the 1st unit is totally imparted while 2nd unit is the product of R& D department of AMUL.

The average total production of 4390 MTS is achieved lay both the plants connectively.

PRODUCTION PROCESS OF THE PRODUCT

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FLAVOURED MILK

Manufacturing Process Flavored milk Receiving of milk

Standardization (fat=3%,SNF=9%)

Pre-heating at 60c

Addition of sugar (8%)

Homogenizations at 60 c

Chilling at 5 c

Addition of flavor & color

Botting

Capping

sterilization

Storage (at room temperature)

Dispatch

Shelf life-45 days

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CURD PRODUCTION PROCESS

Manufacturing Process for plain curd milk

Add SMP & sugar

Heat to 80c for 17 seconds

Add culture

Filter

Fill in cups

Incubate at 380 for 4 hrs(Acidity 0.63% to 0.8%la)

Cool to 150c

Stare under refrigeration

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SWEETEMED CURD PRODUCTION PROCESS

Manufacturing Process for plain sweetened curd milk

Add SMP & sugar

Heat to 80c for 17 seconds

Add culture

Filter

Fill in cups

Incubate at 380 for 4 hrs(Acidity 0.63% to 0.8%la)

Cool to 150c

Stare under referigeration

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BUTTER PRODUCTION PROCESS

Cream stronge

Butter churn, cream testing add color in butter churning to get butter milk washing

Moisture test

Moisture standardization

Final moisture

To take out butter in trolley

To send out butter in packing debt

D

Packing

Storage (cold storage)

Dispatch in refrigeration van

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GHEE PRODUCTION PROCESS

Melting cream/white butterSour butter

Butter boiling for making Ghee (kettle)

Balance tank

Presenting tank

Clarification

Setting tank

Testing

Packing

Storage

Dispatch

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POWER PRODUCTION PROCESS

Milk condensing & Homogisation Power

Milk power bag & tin

Laboratory testing

Storange (Limited time)

Power packing

Storage

Dispatch

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PACKAGING

Packing is aimed at impressing the buyers through colorful attractive and eye caching packing of the product. The importance of packing has increased considerably in the area of marketing recent years Pacing means all the activities involved in designing and producing the container or wrapper for a product

PRODUCT SCHEDULING

Products scheduling is to introduce & develop the new products as per the consumer’s requirement.

In Amul, federation desides what type of product is to be produced or what the requirements for developing a new product.If the product are not at their best then what kinds of up gradations are required GCMMF guides AMUL for the above concern & accordingly the units works.

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INTRODUCTION

The concepts of market are very important. Marketing is a comprehensive learn. It includes primary resources such as human resources, finance & management as well as a set of activities in order to direct the flow of good s & services from producer to consumer in the process of exchange & distribution. Marketing may be defined as the process of exchange between seller & buyer. It involves a number of inter related activities designed to plan promote, distribute and price a product or service in order to meet the wants and needs of both the parties in exchange

Transaction Viz :- Consumer (buyers) and producer (sellers) P.Kotler defines marketing as “The human activity directed at satisfying needs & wants through exchange process”. Marketing is the “Creating & delivery of standard of living to the society” A total system of interacting the business activities designed to plan, price promote & distribute want satisfying products & service to present & potential customers.

According to the committee of American marketing association. Marketing consist of performance of business activity that direct the flow of good and services from producers or supplier to the consumer and users.

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In Amul Dairy proper emphasis has given is the concept of marketing as it helps in increasing the selling and profitability and that is why the separate department of marketing has kept to carry on and control marketing activities of milk made products are performed by Gujarat Milk Marketing Federation Ltd. On behalf of Amul Dairy this Organization has been set up with the purpose of the overcoming the intro competition between members and to give fight to outer competitors GCMMF carries on all the marketing activities on behalf of its member.

PRICING POLICIES

Pricing is the sum of the values consumers exchange for the benefits of having or using the amount of money changed for a product as organization & many non- profit organization set prices is the only element in the marketing mix. Through out the history prices were set by buyers & seller’s negotiation with each other sellers would ask for higher prices then they expected to pay through bargaining, they would arrive at an acceptable price.

Price is all round as all profit-marketing.

Setting one price for all buyers is relating modern idea. It was given impetus by the development of the large scale retailing at the end of the nineteenth century.

A company can pursue any of the following objectives through its pricing.

Survival o Maximum current profito Maximum current revenue.o Maximum scales growtho Maximum quality leadership.

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Amul fixes pricing policy for industrials items like coco, butter, coco power, coco mass, cream etc. and variable pricing policy for factory product like cheese, butter, ghee, chocolate, baby food etc.

Company angle pricing in a variety of ways. In large companies, pricing is handled by market division & product line manager.

Amul chooses prices depending upon market. Amul does not compromise with the quality for getting order. The strength of getting order. The strength of the company lies on high quality of fabrication & creation of the job to the consumer’s satisfaction

MARKETING PROCESS

Marketing of Amul’s Product is done by G.C.M.M.F Ltd. 90% of Amul products are marketed by federation except for liquid milk. Before establishment of marketing G.C.M.M.F dairy marked the product directly, this lead to many problems. Thus the Gujarat co-operative milk marketing federation areas established in 1972 for marketing the dairies of Gujarat. (Total 12 dairies)

All the function of marketing like advertising, budget, marketing research, price for products etc. G.C.M.M.F. It sent monthly market requirements date to the dairies & according to this another concerned dairies will work.

Daily the amount of production of Amul like Cheese, Butter, Milk, Power, Chocolate etc. are sent to the commercial department through production department. This data is very useful to the Amul dispatch orders, which is sent to the federation dispatch order. It involves quality of good when the goods are to be sent price signal executive etc.

There dispatch orders are sent to concerned state by programmer committee & under committee member different persons are included line member of Amul.

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PRODUCT LINES

Today due to vitality of market increasing demand increase in diversity of product and cutthroat competition a company puts more then one product in marketing and is called product line. Similarly the group of product, which are produced and sold by one company, is called product mix. We can that the product is complementary to the other product while in product line the product are competing each other.

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ADVERTISING

Advertising is one of the tools that a company uses to direct persusive communication to target buyers & consumer. Advertising is any paid from of non- personal presentation & promotion of ideas good as services by identified sponsors.

Advertising is employed in all the countries of the world. Advertising is a cost effective ways to dissemination messages.

There are five major decisions in developing an advertising programme know as five M:-

o Mission: What are the adverting objectives?o Money: How much can be spent?o Message: What message should be used?o Media: What media should be used?o Measurement: How should the result be evaluated?

The major objectives of advertising are to inform to persuade & to remind customers about the media allocation.

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Frequency & impact, choosing, among major media type, selecting specific media vehicles, deciding on media timing & deciding geographical media allocation.

Advertising is very important tool for the product range of Amul Dairy. The company is given advertising in reputed & well- circulated industrial magazines T.V, Newspapers etc.This is order to bring awareness of the company’s various product among the customers & introduce, co-range of product into nearly diversification fields.

DISTRIBUTION OF CHANNEL

AMUL DAIRY

GCMMF

AREA DEPOT

DISTRIBUTORS

RETAILERS

CONSUMERS

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RECRUITMENT & SELECTION

RECRUITMENT :-

It forms the first stage in the process, which continuous with selection causes with the placement of the candidates’ recruitment is the discovering of potential applications.

There are 3 method of reenactment

1. Direct2. Indirect 3. third Party Method

Amul has adopted direct method of recruitment

In Amul 4 types of recruitment

1. Graded Skill:

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In this type of recruitments employees are recruited two ways under graded skill firstly well qualified & experienced persons are considered secondly fresh graduate from Well know institute like I.R.M.A, TATA etc. are considered.

2. Recruitment Under Union Scheme:

This scheme is owned schemed of Amul according to this scheme M.L.W, M.R.M.D,D.C.A,. M B.A candidates are recruited as management trainee candidates is 1 year & stipend rs.1500 per month ,for engineering period is 1 year & stipend Rs.2000 per month for 1st year is Rs.1200,2nd year Rs.1500 & 3rd year Rs.1500.

3. Recruitment of temporary Workers:

Under this scheme workers are recruited temporary for 3, 6, 9 or 12 month they will be recruited in union scheme as trainee. Their training period is three year if they are irregular then their training period may be extended.

4. Recruitment under Apprentice act:

There are three of apprentice Act.1. Apprentice Act 1961: Under this act 61 students from S.S.C, B.S.C, government takes I.T.I.2. Apprentice Act 1973: Under this act seat are allotted for engineering, diploma & degree. They are given the post like technician’s food & diary technology etc.per diploma student 1 year training Rs.2000 per month.3. Apprentice Act 1986: Under this act Vocational person are consider they given post like management trainee. Their training period is Rs 450 per month in 1 year training.

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SELECTION :-

SELECTION PROCEDURE OF AMUL IS AS UNDER:-

VACANCY IN ANY DEPARTMENT

DIRECT APPLICATION

COLLECTION OF APPLICATION

SCRITINISATION OF APPLICATION

INTERVIEW

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MEDICAL CHEACK UP

SELECTION

1. Vacancy in any Department:- Where there is any organization department then they collect in information through collages, institution, university etc.

2. Collection of application:-

They collect application form posts which are directly received. They collect list form district employment exchange campus interview etc.

3. Scritinisation of application:-

After collection of application. They are studies in detail & not suitable applications are rejected & other kept for further process.

4. Interview:-

Remaining application are then called for interview in this interview person personality , experiences, subject knowledge general knowledge etc.Are tested interview result declared on that day.

5. Medical check up:-

Selected person sent for medical checkup & when person medically fit then section is done.

Selection:- Medical fit person gave offer letter & then person is join in a work. In Amul

Probation period is different for different types of person.12 months for officers. 6 months for clericals 3 months for workers

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If any person is not suitable for his job then they have a write to terminate their services also.

TRAINING AND DEVELOPMENT

Every organization needs to have well-trained and experienced people to perform the activate that have to be done.

Training is or process of leaving a sequence of programmed bahaviour . It is a system to improve the skill.

Training in Amul is done by three ways.

I. Divisional II. Manager proposal

III. Performance Appraisal Training is provided to the capable and responsible person in Amul. Manager proposed for training is to be send to different training

institutions like IEM, IRMA etc. Employment are analyzed about their performance to their job. Those who are selected for training has to submit their report after completed their training.

So, young talented officer are send for training their time period is 2 year.

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WAGE & SALARY ADMINISRATION

The wages are paid in cash & are also credited in the sawing & Bank Account of the employees. Wages are deducted according to the grade of works. Amul has A, B, C, D, E, F grade of workers.

Following are the minimum & pay scale for different categorice of persons.

: PAY ROLL SYSTEMS:

GRADE POST PAY SCALEManager M.D 7000 to 15000Manager G.M 5000 to 11000Manager A.G.M 3900 to 8300Manager Manager 3500 to 7800Manager Deputy Manager 2300 to 6200

Officers Supdt 1800 to 5480 Officers Dy. Supdt 1550 to 5078 Officers Sr. officers 1300 to 5480 Clerical Asistant 950 to 3645 Clerical Sr.Clerk 750 to 350

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Workers Grade ‘C’ 300 to 350 Workers Grade ‘D’ 280 to 895 Workers Grade ‘D 195 to 68

Workers Grade ‘F’ 175 to 60TOTAL NO OF EMPLOYEES ARE INCLUDE IN AMUL DAIORY AT ANAND. GRADE MANPOWER

Manager 54Officer 209Supervisor & clerical 8

Workers 1083 TOTAL 1764

ORGANIZATION STRUCTURE

Manager (P & A)

Supdt (P& A) Supdt (hand) suptd (labour)

Officer Sir. Officers Officers

Asst. Officers Asst.

Peon Asst.

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LABOR WELFARE FACILITIES

Manpower is the life hood of an organization. It is property conduct then only the organization can work efficiently & properly.

1. CANTEEN FACILITIES:- Amul has its own canteen for its workers as well as staff members. All the workers of the organization get tea, coffee, breakfast at minimum rate tea & coffee 40 paisa per cup, Dry fast food Rs. Per kg. lunch dish Rs. 5per dish.

2. MEDICAL FACILITIES:- Amul also provided medical facilities to its workers. Amul has its own medical hospital within Organization.

4. EDUCATION FACILITIES:- Amul is also given education facilities to its own workers children maximum to Rs1000.Bonus: - Amul had given bonus before Diwali to their workers & office staff

also.

5. LOAN FACILITIES:- They had given loan to workers.

6. SAFETY: Amul also provide hand, googol, and shoes for workers safety.

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7. WORKMAN’S COMPENSATION POLICY:- It during the office time or working time any accident occurs then company will pay for injury. It is category wise from.

8. UNIFORM:- The company is given two pairs of Uniform per years to every employee.

9. EMPLOYEE WELFARE FUND:- It is voluntary welfare scheme under which the employees have to contribute rest.10/- per month & company also makes an equal contribution.

1. personal accident policy: The amount for this is set up for every workers category wise. The premium is paid by the company on behalf of the workers. In case of any accident this policy is very useful for workers.2. Advance: The advance which the company provides arte food grain advances festival etc.

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PERFORMANCE APPRAISAL

The process of evaluating the performances & Qualification of the employees in term of the requirement of the job for which he employed is said to be performances appraisal system.

It is highly useful in making decision regarding various personnel aspect such as promotion & merit. Amul adopt two type of Appraisal system.For nearly joint

Promoters form one place to another performance

Appraisal period far trainees are one-year temporary workers.

1 ½ year Managerial & Engineers Trainer ¾ year. Workers 1 year Officers 3 year Clerical 4supervisor 2 year.

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EMPLOYEE RELATION ACTIVITY

The Scholarship Are Given every year to outstanding children of the union staff under the group’s gramin personal accident policy the member 7 spouse are issued by the union. The union operative Development program. To up grade the knowledge of the member’s management committee member of the village co-operative staff members.

Like wise they also established a ‘Sashared Kalyan fund’ to meet. The emergent head of the community especially at the term of nature caremittes. The members have dosed out a post their daily milk income to start a huts, which will ensure all medical requirement of member’s family during garnering sickness, disregarding the cost of treatment. Beside these above mentioned in labour activity, all the workers in Amul gets 500 grams of milk free. Amul provides a subsidized canteen for the employees & also pays education fees for their employee’s student.

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PERSONAL DATA

Amul bring a co-operative work in a joint manner where joint effort of day. Amul is where it should be all the member is the co-operative are joined to each other like a hung family.

All documents of all employees are preserved under the personnel record arte generally prepared from the report & maintain for long time in this contain every details regarding the employees.

In the personal record services too master keeper, personnel file requirement register, pricey file etc are maintained.

Services roll is a in which employee no full name, birth date, designation date of confirmation,promation, rate of increment, date of retirement, permanent & present address etc are recorded.

Seniority files is the another file. In this file grade post are maintained & check after every month. It any employee is to be promoted then it is recorded seniority is considered.

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The hierarchy of its followed from M.D to the workers. The record of all 3 units maintain & period. There is grade table for pay scale of different post. For example, Manager Grade include Sr. superintendent, Sr. officers, clerical grade include grade A, Grade B & C, D, E, F, G. The company should also record our future studies certificates.

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RELATIONSHIP WITH OTHER DEPARTMENT

Finance department are closely selected with other department like production department, marketing department & personal department. Finance is the key for any organization. The efficiency of production & Marketing operation is directly intense is by the manager in which the finance function of the enterprise is performed by the finance . It also helpful in efficiency of the personal department.

Finance department is providing policies & producers which bring out a closer co-ordination between the various functional areas of businees such as production & Marketing. The finance planning is to forecast about the future requirements of fund & use of funds. So the production department may get the information about how much fund is needed in future for the producting of the product.

Finance department is closely related with the production department.Almost all kind of business activities, directly or indirectly, involves the according & use of funds.

For example, requirement & promotion of employees in the production is clearly a responsibility of the production department but it resolved payment of wages & salaries and other benefits and this involves finance.

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Finance department are closely related with the marketing department. Because in marketing department ,in the advertising.Distribute good & services ,the fund is necessary. The finance department is providing the funds to the marketing department.

The personal department is closely related with the finance department. The personal departmentis provide the manpower to the organization. But there is a need to pay wages & salary and other facility to the worker. The finance department provides the fund & other facilities to workers.

So, there is a close relationship of finance with production, Marketing & personal.

ACCOUNTING POLICIES

In AMUL, there are accounting policies under:.

1. METHOD OF ACCOUNTING:-

The union following actual system of accounting in the preparation of accounts.

The financial statements are prepared on the historical cost convention & in accordance with generally accepted accounting principles.

2. FIXED ASSETS:-

Fixed assets are valued at cost. The cost of assets comprises purchase price and directly attributable cost in bringing the assets to its preset condition or intended use.

3. DEPRECIATION:-

Depreciation on fixed asserts is provided on written down value method at the applicable rates prescribed under the income TexActy 1961.

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In the case of AMUL 3 dairy & Kara Dairy depreciation has been changed on straight-line method as per rate prescribed under the companies Act 1956. Depreciation has been provided for the full year for the assets required & commissioned between 1st oct. 1998 to 31st march 1999.

4. CAPTION WORK IN PROGRESS:-

Project under commissioning & other capital works in progress are carried at cost.

5. INVENTORIES:-

Real materials, packing materials semi packed goods & goods in transit are valued at cost on FIFO BASIS. Stores & spares are valued at cost on basis. Finished goods in case of Anand, moger & khatraj are valued at the ex-factory priceless 17% which is fair estimation of the direct cost.

In case of Kanjari unit the finished goods has been valued at the ex-factory priceless 15%.

6. INVESTMENT:-

Investment are primarily meant to be held over a long term period & as such are statedat cost. 7. RETIREMENT BENEFITS:-

Union’s contribution towards gratuity & superannuating for its employees are funded with life insurance corporation of India. Leave encashment is accounted for as & when due for payments.

8. PAYMENT OF BONUS:-

Provision has been made in the financial year 1998-1999 but payable to employees in 1999-2000.

9. SALES INCLUDED EXCISE DUTY:-.

10. RAW-MATERIAL CONSUMPTION:-

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Is net of credit availed under modvat scheme when ever applicable.

11. HE EXCISE DUTY PAYABLE:-

On finished goods is accounted for on the clearness of good from factory.

Contingent liability not provided for:

Bank guaranties of rs.1.26 crores given on various accounts. Disputed liabilities for sales tax Rs.54.19 lacks. Disputed liabilities for excises duty for Rs.2.45 crores Disputed liabilities for income tax Rs.6.03 Crores.

BALANCE SHEET

Rs. In lacs 31.3.2005 Assets 31.3.2006 Rs. Rs. Rs. Assets24545.14 Gross Value: 25225.09 As per Schedule-3 col-518437.29 less:Depreciation Fund 20256.43

As per Schedule-3 col-9 6107.85 Net Assets: 4968.66

0.00 Capital work in Progress 51.09 51.09 Investments 0.20 National saving Certificates 0.18

433.40 Shared investments 433.40 140.00 Fixed deposits 80.00

573.60 513.58 Stock 6408.39 Trading 7989.62

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1253.97 Stores 1681.64 7266.36 9671.26

Advances & Debtors 178.64 Deposits 166.96 0.13 Due from societies 0.01 237.49 Adavance 552.26 8006.97 Trade Debtors 6764.65 222.02 Sundry debtors 365.61 69.18 Income tax deposits 74.50

8714.43 7923.99 Cash & Bank Balances 286.39 with bank 396.57 1932.45 Deposits in Banks 998.29 0.86 On Hand 0.83

2219.70 1395.69

0.00 Deferred Revenue Expenditure 70.90 70.90 [to the extent not written off]

25277.94 Total 24595.17

BALANCE SHEET as at 31st march 2005 Rs. In lacs

31.3.05 LIABILITIES 31.3.05 Rs. Rs. Rs.

Authorised Share Capital 2000.00 [20,00,000 share of Rs.100each] 2000.00 1395.42 Share Capital:[Fully paid up] 1599.81

2057.23 Reserve Fund & Other Funds 2154.60 [as per schedule1,col 5]

2162.34 Grants: [as per Schedule2,col 6]

1175.06 Redeemable Debentures 1162.93

Loans: 5830.00 UTI bank long term loan 4290.00 500.00 UTI bank cash Credit Facility 500.00 1000.00 Short term loan 500.00 7330.00 5290.00

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2858.10 fixed deposits 3263.70

Current liabilities 285.46 deposits 347.39 3444.98 due to societies 4160.04 1049.46 outstanding against expenses 955.75 2661.84 outstanding against purchases 2989.69 491.46 sundry creditors 438.72

7933.20 8891.59 Provisions 0.00 frnge benefit tax 30.00 4.67 bad debts 9.67 2.87 decline in investment 2.87 25.67 leave encashment 26.66 22.15 decline in stocks 0.00

55.36 69.20

311.23 net profit during the year 323.74

25277.94 Total 24595.17

TRADING ,PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 ST MARCH 2006

Rs.in lacs 2004-05 PARTICULARS 2005-06 Rs. Rs.

To opening stock 2046.29 finished goods stock 4990.73 1271.94 stock in process 1179.10 74.25 milk stock 126.26 0.00 stock in transit 111.65 0.00 parlour stock 0.65 3392.48 6408.39 39890.82 To milk purchases 46502.01 10040.21 To raw material consumption 10872.93 582.97 To research & extension expenses 727.41 299.79 To packaging expenses 570.19 2324.58 To power & fuel expenses 2564.09 1410.85 To salaries and wages 1378.63 368.53 To staff provident fund gratuity & other amenitier 481.82

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674.09 To repairs & maintainance expenses 736.24 306.01 To freight & forwarding expenses 465.77 69.72 To marketing expenses 97.62 45.04 To postage, telegrame, telephone, printing

& stationary expenses 58.10 43.87 To insurance premium 76.10 23.28 To rent,rates & taxes 47.01 72.14 To audit fees 82.96 122.18 To administrative 127.83 848.69 To interest & bank commission 789.23 4420.11 Total depreciation charged 1887.41 356.73 Less adjusted against Grants 340.20 2853.25 Less adjusted for prev years’grants 386.52

1210.13 1160.69 0.00 To fringe benefit tax provision 30.00 0.00 To bad debts provision 5.00 25.67 To leave encashment provision 26.66 22.15 To provision for decline in stocks 0.00 47.32 To prior period expenses 86.32 311.23 To net profit 323.74

66448.90 Total 78886.67

16378.97 By milk sales 22212.27 43630.38 By product sales 48667.17 37.61 By parlour sales 42.09

60046.96 Total sales 70921.27 587.89 Less:exvise 715.30 59459.07 Net sales 70206.23

224.65 By interest income 104.02 63.55 By dividend income 64.43 287.19 By other income 487.60 6.05 By prior period income 34.77 4990.73 finished goods stock 5741.55 1179.10 stock in process 1821.55 126.26 milk stock 154.85 111.65 stock in transit 270.27 0.65 parlour stock 1.40

6408.39 Total 7989.62

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SCHEDULE 1 [BALANCE SHEET 2005-2006]Funds Rs. In lacs

Name of the fund balance additions Deductions balance 31.3.2006 Rs. Rs. Rs. Rs.

1 2 3 4 5

Reserve fund 684.67 77.81 0.00 762.48General Reserve 1330.66 5.57 6.79 1329.44Dividend equilisation fund 41.87 20.79 0.00 62.66Charity fund 0.03 1.39 1.40 0.02

Total 2057.23 105.56 8.19 2154.60

SCHEDULE 2 [BALANCE SHEET 2005-2006] GRANTS :

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Rs in lacsGrants project balance additions deduction deductions balance

1.4.05 against 31.3.06 Rs Rs Rs depreciation Rs.

1 2 3 4 Rs 5 6

SGSY Project Grant 118.78 728.12 324.14 46.50 476.26Technology mission for dairy develop 13.65 0.00 0.00 1.36 12.29NDDB operation food-2 fund Anand 171.24 0.00 0.00 0.00 171.24NDDB operation food-3 fund Anand 641.40 0.00 0.00 0.00 641.40NDDB operation food-3 fund CFF 0.13 0.00 0.00 0.02 0.11NDDB operation food-3 fundVCU 3.64 0.00 0.00 0.55 3.09NDDB operation food-3 fund amul-3 859.30 0.00 0.00 565.42 293.88NDDB operation food-3 fundCheese plant 337.18 0.00 0.00 110.70 226.48NDDB Bread – spread grant 17.02 0.00 0.00 2.17 14.85

Total 2162.34 728.12 324.14 726.72 1839.60

SCHEDULE 3 [BALANCE SHEET 2005-2006]Assets

Assets Gross block Gross block Gross block Gross block depreciation depreciation depreciation depreciation netblock netblock As on additions sales or as on fund as on additions reductions on fund as on 1.4.05 transfer 31.3.06 1.4.05 sale/transfer 31.3.06 31.3.06 31.3.05 1 2 3 4 5 6 7 8 9 10 11 Land 200.20 0.00 0.00 200.00 0.00 0.00 0.00 0.00 200.20 200.20 Building 3096.75 64.84 0.67 3160.92 1312.55 103.72 0.67 1415.60 1745.32 1784.20 Plant & machinery 19409.23 529.11 67.78 19870.56 15923.49 1685.19 56.24 17552.44 2318.12 3485.74railway Siding 3.38 0.00 0.00 3.38 3.38 0.00 0.00 3.38 0.00 0.00vehicles 145.27 25.95 0.00 171.22 107.87 9.36 0.00 117.23 53.99 37.40 Dead stock 884.22 98.78 86.51 896.49 413.73 45.66 7.29 452.10 444.39 470.49 Computer System 613.32 17.96 0.00 631.28 551.72 23.87 0.00 575.59 55.69 61.60 Cans 188.04 101.45 4.34 285.15 123.35 19.55 4.07 138.83 146.32 64.69Library 1.85 0.00 0.00 1.85 1.20 0.06 0.00 1.26 0.59 0.65Live stock 2.88 1.16 0.00 4.04 0.00 0.00 0.00 0.00 4.04 2.88

Total 24545.14 839.25 159.30 25225.09 18437.39 1887.41 68.27 20256.43 4968.66 6107.85

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SCHEDULE 4 [distribution of Profit as per Bye-Laws- 2005-06 ]

Rs. In lacs2004-05 2005-06Rs. Rs.311.23 Net Profit [As per Trading,Profit & lossA/c] 323.74

Appropriation of Net Profit as under 77.81 Reserve fund 25% 80.93 3.00 contribution toward education fund 3.00202.70 Share Dividend 15% 233.50 Out of the remaining Profit20.79 Dividend equilisation fund 75% 4.73

Further appropriation out of remaining Profit 5.54 General Reserve 80% 1.26 1.39 Charity fund 20% 0.32

311.23 Total 323.74

CONCLUSION

In my thinking at F.Y.B.B.A level & particularly in Amul is one of the greatest experiences. Amul has beautiful establishment system. Amul is the successful story of co-operation. For hands working together is happiness & that is success. Amul earned good reputation in milk market & other milk bared products and covered the national market. Amul also adopted latest technology can not become abated for the achievement of target.

The reason behind the success of Amul lies in its 4 D’s which are: Dedication

Discipline Determination

Development

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To be a small producer is no more a disadvantage. In co-operative dairying there is a great chance of rural development leading to the empowerment of the poor & the lowly.

BIBLIOGRAPHY

BOOKS ..

Ruddar datt and K.P.M.Sundharam, 2003. “Indian Economy”,Forty-seventh Revused edition by s.chand & company.Renu sobti,,2003.“banking and finance services in india” by new century Publication. R. narayanaswamy,2003.“financal Accounting.”By prentice Hall of India private limited.

MAGAZINES

Banking Finance , January 2001.

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RBI Bulletin, Novemeber 2004.

NEWSPAPERS

Business Standard , Octember23,2003Economic Times, September22,2004The Finance Express, August11,2003.Times of India, september10,2003.

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