Finaal Mother Dairy

INTRODUCTIONOBJECTIVES OF THE STUDY To offer comments on the annual budgeted estimations on the accounts of a mother dairy for the users of the financial statements to access the ability of the mother dairy to generate cash and cash equivalents to serve the needs of the organization. To derive the working experience of producing budgetary statements. To offer limited directions cash management group to steer the organization to a cash surplus company. • Analyzing the budgetary estimations of the organization. SCOPE OF THE STUDY Mother dairy having the continuous growth every year several divisions, the study of budgetary control in this organization gives a fair idea on the cash management considering the major transaction of the firm. The budgetary estimations are taken for the project study form the annual reports for the information, and are restricted to the last five years. Several aspects of the firm have been considered. The discussion is made in ensuring chapter for the budgetary estimations that have been prepared at the end of the financial year, and the date is compared with the past five year’s records. 1 METHODOLOGY OF THE STUDY: A. Sources of the data There are mainly two important sources through which the whole data is collected. Primary Data The primary data of the topic is collected by personal interaction with the officials of the finance and accounting department and also from annuals of the company. The financial data relating to organization has been collected for the 5years. Secondary Data The data collected from the websites, books and all other relevant information or literary are taken as secondary source of data. The data thus collected is arranged in a format. B. Period of the data The is the project report (live project) conducted in the month of April,2007 for 45 days. The partial fulfillment of Master of Business Administration (MBA). 2 PRESENTATION OF THE STUDY 1) The first chapter is the present scenario of the topic together with objectives and methodology are presented. 2) The second chapter is about the profile of the MOTHER DAIRY is given in which the study is done. 3) The third chapter is about industrial profile. 4) The fourth chapter is conceptual frame work relating to budgets and a budget is reported through tables. 5) The fifth chapter consists of the study of budgetary control of MOTHER DAIRY. 6) The sixth chapter consists of the suggestion & bibliography. LIMITATIONS TOF THE STUDY The 6 weeks period is one of the constraints to make project much more qualitatively Findings of the study are purely based on information provided by the company other non financial factors were not considered for analysis. 3 DIFFERENT KINDS OF SECTORS IN DAIRYING IN INDIA. towns and even teeming need populate. The main rust was not in just supplying milk but also in giving opportunities to improve the quality of rural life. In India there are four different kinds of sectors in the field of dairying They are follows. PRIVATE SECTOR Individual persons forming his/her dairy shop and collects milk and sale the milk and its products to customers directly.INTRODUCTION TO DAIRYING IN INDIA : Every morning millions of Indians wake up to find their dairy requirement of milk waiting at their doorstep. From middlemen and milk producers and processing of milk is done in their own plant and then sold to the customers. But most of all it renewed there hopes and raised their assumptions. 4 . find their way into millions of homes in the metros. ghee. cities. cheese. PUBLIC SECTOR In this kind of sector. 2.P it as changed the way people looked at life in rural India. by purchasing milk. dairying is done by govt. And maybe for the first time allowing them to dream. Across the country. Milk is the nourishes of health and it was this elixir that brought forth significant change in the lines of the people of A. 1. the dairy products like butter. 3. which recognized non-credit forms of cooperative including marketing. CO-OPERATIVE SOCIETIES: Co-operatives mean voluntary association on the basis of equality and for some common purpose. FEATURES OF CO-OPERATIVE SOCIETY/UNION • • • • It’s membership is voluntary It’s organization is democratic It’s functioning is based on decentralized decision making principle Its aim is economic. cooperatives is a form of organization where in persons voluntarily associate together as human beings an basis of equality for the promotion of their economic interest of themselves”. processing and marketing of milk is done and then it is sent to milk takers place. The basic principle of cooperatives is “each for all and all for each” in the words of H. It consists of an intermediate organization between primary societies (village level) and the pace societies. cooperatives milk union’s structure was three tier structures. COOPERATIVE MILK UNIONS: In India. 5 . evolution of cooperative societies is as old as the co-operatives ACT of 1912. by which arrangements for collection. TRADING SECTOR Production of milk products is done their primary co-operative society or co-operative milk union at district level.CALVERT. social and moral development of its members In India. A budget fixes a target in terms of rupees or quantities against which the actual performance is measured. Capital and operating Budgets. Budget and budgetary control provides a set of basic techniques for planning and control. Capital Budgets are directed towards proposed expenditure for new projects and often require special financing. Budgets are means of communication. Budgets maybe divided into two basic classes. domestic and business. Budget is necessary to future to motive the staff associate. the need for budge thing is correspondingly more because a budget is an effective tool of planning and control. Ideas of the top management are given practical shape. purchase etc) of the organization with result that all the activities precede according to the objective. As the size of the organization increases. The operating Budgets are directed towards achieving short-term operational goals of the organization for instance. to coordinate the activities of different department and to control the performance of various persons operating at different levels. A budget is prepared is to have effective utilization of funds and for the realization of objective as effective utilization of funds and for the realization of objective as efficiently as possible.. efficiently. Budgeting is a powerful tool to the management for performing its functions i. Budget is helpful in coordinating the various activities (such as production.e. As the activities department heads are coordinated at the much needed for the very success of an organization. production or profit goals in a business firm. For efficient and effective and budgetary control provides a set of basic techniques for planning and control are two highly essential functions. A budget is closely related to both the management function as well as the accounting function of an organization. 6 .REVIEW OF LITERATURE INTRODUCTION TO BUDGET AND BUDGETARTY CONTROL BUDGET: Budget is essential in every walk of our life –national. sales. of the policy to be pursed during the period for the purpose of attaining a given objective. Budgeting is closely connected with control. 3. The process of budgetary control includes. 7 . DEFINITION OF BUDGET According to institute of charted management accountants. Continuous comparison of the actual performance with that of the budget and placing the responsibility of executives for failure to achieve the desired results a given in the Budgets. prepared and approved prior to be defined period of time. Establishment of Budgets for each function and section of the organization. a Budgets is “financial and/or quantitative statement. Taking suitable remedial action to achieve the desired objective if there is a variation of the actual performance from the Budgeted performance.” According to ICMA.” It is also defined as “a blue print of protected plan of a action of a business for a definite period of time. England “ a plan quantified in monetary term prepared and approved prior to a defined period of time usually showing planned income to be generated and/ or to be incurred during that period and the capital to be employed to attain a given objective. 1.Operating Budgets maybe sub-divided into various departmental of functional Budgets . 2. Executive responsibility in order to perform the specific tasks so that objective of the enterprise maybe attained. The exercise of control in the organization with the help of Budgets is known as budgetary control. 4. England.” BUDGETARY CONTROL: No system of planning can be successful without having an effective and efficient system of control. Row land and William in their book entitled Budgeting for management control has given the difference between Budgets. Budgetary control embraces all this and in addition includes the science of planning the Budgets themselves and the utilization of such Budgets to efforts on overall management too! For the business planning and control. Budgeting and budgeter control as follow: “Budgets are the individual objectives of an department etc where as budgeting may be said to be the act of budgets. comparing the actual performance with the Budgeted and acting up in the results to achieve the maximum profitability. Betty ”system which uses Budgets as means of planning and controlling all aspects of producing and/selling commodities and services” According to the CIMA.5. co-coordinating the department and establishing the responsibilities.” Thus . and the continuous comparison of actual with Budgeted results. London. either to secure by individual action the objective of that policy or to provide a basis for revision. 8 . revision of Budgets in the light of changed circumstances. “Budgetary control is the establishment of Budgets gets relating to responsibilities of executives to the requirements of a policy.” According to the j. a budget is financial plan and budgetary control results from the administration of the financial plan. DEFINITION OF BUDGETARY CONTROL: According to the brown and Howard “ Budgetary control is the system of controlling costs which includes the preparation of Budgets . It fixed targets and the various departments have to efficiently to reach the targets. ►it is an effective method of controlling the activities of various departments of a business unit. ►it facilitates centralized control with decentralized activity. 9 . ►it brings in efficiency and economy by promoting cost consciousness among the employees. It fixed targets and the various departments have to efficiently to teach the targets. ►it is an effective method of controlling the activities of various departments of a business unit.ESSENTIAL FEATURES OF A BUDGETARY: ► Budgetary control defines the objective and policies of the undertaking as a whole. ► it helps the management to reduce wasteful expenditure. ►it secures proper co ordination among the activities of various departments. ►it acts as internal audit by a continuous evaluation of departmental results and costs. ►it helps the management to fix up responsibility in case the performance is below expectation. This leads to reduction in the cost of production. to anticipate and give the organization purpose and direction. 10 . ● Promotes coordination and communication. ● Economizes management time by using the management by exception principle. ● Improves the allocation of scarce resources. There are a number of advantages to budgetary control: ● Compels management to think about the future. operation and (ideally) each manager. ● Enables remedial action to be taken as variances emerge. ● provides a basis for performance appraisal (variance analysis). ● Clearly defines areas of responsibility. which is probably the most important feature of a budgetary planning and control system. to set out detailed plans for achieving the targets for each department. A budget is basically a yardstick against which actual performance is was unread assessed. Forces management to look ahead.ADVANTAGES OF BUDGET AND BUDGERTARY CONTROL. Control is provided by comparisons of actual results against budget plan. Departures from budget can then be investigated and the reasons for the differences can be divided into controllable and non-controllable factors. ● Motivates employees by participating in the setting of budgets. Requires of budget centers to he made responsible for the achievement of budget targets for the operations under their personal control. ● Budgets can be seen as pressure devices imposed by management. ●It is difficult to reconcile personal/individual and corporate goals. power costs. This is often coupled with “empire building” in order to enhance the prestige of a department. 11 . some costs are under the influence of more than one person. particularly in perception terms. Responsibility versus controlling. e. ● Managers may overestimate costs so that they will not be blamed in the future should they overspend. thus resulting in: i) Bad labor relations ii) In accurate record keeping ●Departmental conflict arises due to: i)Disputes over resource allocation ii)Departments blaming each other if targets are not attained. i. ● Waste may arise as managers adopt the view.PROBLEMS IN BUDGETING Whilst budgets may be an essential part of any marketing activity they do have a number of disadvantages.g.e. “we had better spend it or we will lose it”. LIMITATION OF BUDGETARY CONTROL ►The preparation of a Budget under inflationary conditions and changing government policies is really difficult. It cannot be replace management in decision marking. ►Accuracy in budgeting comes through expenditure. Thus. the accurate position of the business cannot be estimated. ►There will be active and passive resistance to budgetary control as it points out the efficiency or on efficiency of individuals. It is not a sub stature for management. This is often lacking. Hence it should not be relied on too much in the initial stages. ►Budget is only a management tool. ►The success of budgetary control depends upon willing co-operation and team work. 12 . ►Budgeting involves a heavy expenditure. which small concerns cannot afford. ►Frequent changes maybe called for in budgets due to fast changing industrial revision of Budgets is expensive exercise. 13 . It forces executive to think and think as a group. An organization without a budgetary control is like a ship sailing in a chartered sea. ►It is bridge through which communication is establish between the top management and the operatives who are to implement the policies of the top management.PLANNING A Budget is a plan of the policy to be pursued during the defined period of time to attain a given objective. It coordinating the policies. The Budget control will force management at all the Activities to be done during the future periods Budget as a plan of action achieves the following purpose: ►Action is guided by well thought out plan because a budget prepared after a careful study and research. ►The budget serves as mechanism though which management objectives and policies are affected. ► The most profitable course of action is selected from the various available alternatives. plan and action. CO-ORDINATION: The Budgetary control co-ordinates the various activities of the firm and secure co-ordinates the various activities of the firm and secures co-operation of all concerned so that the common so that the common objective of the firm maybe successfully achieved. A Budget gives direction to the business and imparts meaning and significance to its achievements by making comparison of actual performance and badgered performance. Budgetary control makes control possible by continuous comparison of actual performance with that of the budget so as to report the variations from the budget to the management of corrective action. Control of performance is possible with predetermined standards.MOTIVATION At employees actively participated imbued preparation and if they are convinced that their personal interest are closely associated with the success of organizational plan. And control device depends upon the activity in which it is being used. Becomes the basis for developing Budgets and exercising control. Thus. The relationship between inputs and outputs. Thus. depends purely on how the workers have been mentally and physically involved with the process of Budgeting . CONTROL Control consists of the action necessary to ensure the performance of the organization confirms to the plans and objectives. 14 . The more accurate budget can be developed for those activities where direct relationship exists between inputs and outputs. which are laid down in the budget. Budgeting system integrates key managerial functions as it links top management planning function with the control function performed at all levels in the managerial hierarchy. The Budget will motivate the workers. Budget provide motivation in the form of goals to be achieved. But the efficiency of the Budget as a planning. COMMUNICATION The employees of an organization should know organizational aims. It concerns all functions of organizations and serves as a guide to executives and departmental heads responsible for various departmental objectives. responsibilities and areas of operation of each executive in each organization. Affectively communicate this information to employees.APPROVED PLAN A master Budget provides an approved summary of results to be expected from proposed plan of operations. STEPS IN BUDGETARY CONRTOL Organization for Budgeting up of definite plans of organization is a first a step towards installing Budgetary controlling system in any organization a Budgets manual should be prepared giving detail of the powers. BUDGET PROCEDURE Having the Budget organization and fix the period. budgets keep different sections of organization informed about the contribution of different sub units in the attainment of over all organizational objectives. the actual work or Budgetary control can be taken up to the following pattern. 15 . adjectives of sub units {Budget centers} and the part that thy have to play for their adamant. Besides. sixties. 1) Introducing and brief explanation of the objects. it should be clear and there should be no ambiguity in it. 3) Length of budget periods and control periods should be clearly stated 4) A method of accounting and control of expenditure. benefits and principles of budgets and principles of budgetary control. In short it is a written document. the routine procedures and programmers to be followed for developing budgets for various items and the duties and responsibilities of the executives regarding the operation of the budgetary control system. which gives everything relating to the preparation and execution of carious Budgets . CIMA England defines a budgetary manual as “ a document schedule or book let which sets out inter alias. Thus. Budgets are to be drawn keeping in view the objectives of the organization given the Budget manual. The following are some of the most important matters covered in budget manual. the routine of and the forms and records required for budgetary control”. responsibility and functions of each executive in regard to Budgeting are return sown in the budget manual to avoid any duplication or overlapping of responsibilities. 2) Organization chart giving the titles to different personals with full explanation of the duties each to operating system and preparation of departmental and functional budgets. it is a document. 16 .BUDGETARY MANUAL A budgetary manual lays down the details of an organizational set up. steps and the methods developing various budgets and the methods of reporting performance against the budget are return down in the budget manual. which guides the executives in preparing various budgets. e. annual budget is quite common because it compares with the financial 17 . Long term Budgets should be supplemented by short term Budgets to make the Budgetary control successful. in case of seasonal industries (i.5) A statement showing a responsibility given to each manager for approval of budgets. For most business. The authority for granting approval must be clearly stated. The Budget period depends upon the nature of the business and the control techniques. A schedule should be drawn for this. 8) Outline of main Budgets and their accounting relationships 9) Explanation of key Budgets. the budget period should be a short one so that the actual results may be compared with the budget each week end or month end and discussed with the discussed with Budget committee. food or clothing) the Budget period should be a short one and should cover one season. the budget period should not be too ling so that there may be sufficient time before budget implementation. vouchers and all other forms and documents which authorized them to spend money. Budget centers should also be clearly stated. specimen form and other number of copies to be used for each report and statement. The Budget period will depend upon the type of business and the control aspect.in short. For example. 6) The entire process of budgeting programmed including the timetable for periodically reporting. 7) Purpose. From control point of view . FIXATION OF BUDGET PERIOD: The Budget period mean the period for which a Budget is prepared and employed. But in case of industries with heavy capital expenditure such as heavy engineering works. as short-terms Budgets will helping exercising control over day-today operations . the budget period should be ling enough to meet the requirements of the business. Budget period mean the period for which a Budget is prepared and employed.. It may be on the following lines. the forecast for that period is dropped and the forecast reliably. of the business). this method is useful. • Long-term budgets for three to five years should be prepared for expansion and modernization of the undertaking.e. shot -term budgets-monthly or even weekly budget-short-term budgets are prepared to see that actual performance is preceding according to the budgets and early corrective action may be taken if there is any pitfall. • Annual budgets coinciding with financial accounting year should be prepared for the operations activities (i. BUDGETARY CONTROLLER: Although the chief executive I finally responsible for the budgetary programmer. • For control purposes. Budgeting is a continuous process under these methods of preparation of Budget. sales. However. purchases. and production etc. Such a person should have knowledge of the technical details of the business and report directly to the president or the chief executive. it is a costly exercise but matched by considerable 18 . It is better if a large part of the supervisory responsibility is deluged to an official designated as Budget Controller or Budget Director.. There should be a regular time plan for budget preparation..accounting year. Once the first period elapses. ROLLING (CONTINUES) BUDGET: This is a budget which is updated continuously by adding a further period(a month/quarter) and deducting a corresponding earlier period. introduction of new products or new projects and undertaking advertisement. budget estimates for the second quarter may be revised working out separately monthly estimates on more precise basis for control purposes before the starting of the second quarter. The. But annual budgets may not help the management to have control because variances due to rapidly changing conditions affect the sales in quantity and prices. For the first quarter precise estimates can be drawn up monthly . severe inflationary sales prices immediately and wide range of products being produced making it not feasible to have precise estimate of activity for a year . It will enable to evolve a precise plan of action and control of variance functions at the least for the immediate quarter and a broad tentative one the subsequent three quarters on a continues basis. The procedure in continuous budgeting will be that a year will be divided into four quarters. severe rapidly changing conditions affect the sales in quantity and prices. 19 .reduction in operational variances. severe inflationary conditions exist resulting fast increase in the prices. Monthly budgets for the first quarter and three quarterly budgets for the next year can be prepared . Similarly procedure may be followed for third and fourth quarter . This method a time which need not be in respect of or coincide with the financial year. ANNUAL VS CONTINUES BUDGETING SYSTEM: In some organizations budgets are prepared on annual basis. PRINCIPAL BUDGET (LIMTTING) FACTOR: Principal budget factor is such an important factor that it would affect all the functional budgets to a large extent. cash budget etc. plant utilization budget. such as production budget. 20 . It is the governing factor which is a major constraint on all the operational activities of the organization. low demand for the product is the limiting factor.000 units of particular item per year. But only 30. In this case. This is the factor in the activities of an undertaking which at a particular point in time or over a period will limit the volume of output. so this factor is taken into consideration to determine whether the budgets are capable of attainment. It is essential to locate the limiting factor may be any one of the following: Is there sufficient demand for the product?(customer demand) Will a required quality and quantity of materials be available? (Availability of raw material) Is the plant capacity sufficient to cope up with the expected sales? (Plant capacity) Is the required type of labor available?( available of labor) Is cash position sufficient to finance the expected volume of sales?(cash position) Are there any Government restrictions?( Government restrictions) For example: A concern has the capacity to produce 50. Therefore.000 units can be sold in the market. labor budget. The extent of its influence must be assessed first in order to ensure that functional budgets are reasonably capable of fulfillment. Therefore sales budget should be prepared first and other functional budgets. production budget should be prepared first and other budgets should follow the production budget. should be prepared in accordance with this case plant capacity is limited. Budgets can be classified according to: The coverage they encompass. DIFFERENT TYPES OF BUDGETS. simplification of product or extension of plant. 21 . It is of temporary nature and in the light run can be overcome by suitable management taking sales promotion steps as increasing sales staff and advertising. Principal budget factor is not static. All budgets should be cocoordinated keeping in view the principal budget factor if the budgetary control is to achieve the desired results. The capacity to which they are related. The conditions on which they are based. the budget relating to limiting factor should be prepared first and the other budgets should be prepared in the light of that factor. It may very rapidly from time to time due to internal and external factors.Thus. Different types of budgets have been developed keeping in view the different purposes they serve. and The periods which they cover. Plant capacity can be improved by better planning. cash etc.g. Material Budgets 4. Research and Development Cost 10. the following budgets are generally prepared. Manufacturing Overheads 6.FUNCTIONAL BUDGET: A functional budget is a budget which relates to any of the functions of an undertaking e.. Plant Utilization Budget 8. Budget 1. Cash Budgets 22 . Sales Budget including selling Prepared by Sales Manager Production Manager Purchase Manager Personnel Manager Production Manager Finance Manager Production Manager Chief Executive R&D Manager Finance Manager And distribution cost Budget 2. sales. Administration Cost Budget 7. Production Budget 3. Labor and Personnel Budget 5. research and development. Capital Expenditure Budget 9. production. Adequate Return on Capital Employed 10. Financial Aspect 9. 1. the sales manager should take into consideration the following factors. sales territories. The sales manager should be mode directly responsible for he preparation and execution of the budget. types of customers. Seasonal Fluctuations 8.SALES BUDGET: Sales budget is the most important budget and of primary importance. Every quantities and values of sales to be achieved in a budget in a budget period. Compeition 11. Orders in Hand 7. Miscellanecous Considerations 23 . General Trade Prospects 6. Plant Capacity 4. The sales budget may be prepared according to products. salesmen etc. in the preparation of the sales budget. Past Sales Figures and Trends. Availability of Raw Material and other Supplies 5. 2. Sale sales men Estimation 3. It forms the basis in which all the budgets are built up. Ever effort should be made to ensure that its figures are as accurate as possible because this is usually the starting budget (sales being limiting factor on which all the other budgets are built up). This budget period.. The material labor and plant requirements should be ascertained to have the desired production to meet the sales programme. The stock of goods to be maintained both at the factory’s go gown and at he sales centers. units et) financial (rupees) units or both. the following factors are considered. This budget may be expressed in quantitative (weight. Monthly production targets should be fixed and it should be seen that production is kept more or less at a uniform level throughout the year. The works manager is responsible for the total production budget and the departmental managers are responsible for the departmental production budget. The level of production needed to meet the sales programme. This budget is prepared after taking into consideration the estimated sales and the desired closing finished stock of each product. The sales and the production are inter-dependant because production budget is governed by the sales budget and the sales budget is largely determined by the production capacity and by production costs.PRODUCTION BUDGET: Production budget is a forecast of the total output of the whole organization broken down into estimates of output of each type of product with a scheduling of operations (by weeks and months) to be performed and a recast of the closing finished stock. The time lag between the production in the factor and sales to the customer should be considered so as to allow fro the time required or the dispatch of goods from the factory to the place of the customers. 24 . In preparing the production budget. After approval it becomes the responsibility of the purchases which are not covered by the purchase budget are made under the following circumstances. Labor and overheads. MATERIALS BUDGET. If overstocking is desired to advantage of lower prices and there is fear that price will increase in near future. The purchase manager should get additional sanctions from the higher authorities for making the additional purchases not I covered by the purchase budget. one of the first requirements to be considered is material. In drawing up the production budget. Indirect materials are dealt with under the works overhead budget. If there is increase in production not anticipated while preparing the purchase budget and purchase of larger quantities of materials becomes necessary. Purchase budget should be prepared by the purchase manager by getting relevant information about capital items. 25 . PURCHASE BUDGET: Purchase Budget is mainly dependent on production budget and material requirement budget. If accumulation of stock becomes necessary to avoid shortage of materials. This budget is an estimate of cost of output planned for a budget period and may be classified into material cost budget. Like other budgets . As we know. The budget should be related to the production budget and the period of the budget should be of short duration because this budget has an important bearing on the cash budget. The materials budget deals with the requirements and procurement of direct materials. the purchase budget has to be approved by the budget committee. labor cost budget and overhead budget because cost of production includes material. materials may be direct or fin direct. After determining the volume of output the cost of procuring the output must be obtained by preparing a cost of production budget.COST OF PRODUCTION BUDGET. general supplies and direct materials required during the budget period from other related departments. This budget provides information about the materials to be acquired from the market during the b period. Sometimes another budget known as Manpower budget is prepared. research and development and capital expenditure budget s. 26 . This budget gives information about the personnel specification for the jobs for which workers are to be recruited.. the lacor cost budget is developed on the basis of standard in the production budget . number of labor hours. Where standard costing system is applied. required for each department.. the expected changes in the labour force during the budget period due to the labour turnovers. the information of labour cost may be obtained from past records or estimated cost. This budget gives the requirements of direct and indirect labour necessary to meet the programmer set out in the sales. the degree for skill and experience required and the rates of pay.g. if standard costing system is not being followed in the organization. and grinders and drillers etc. welders. turner. their scales of pay and hours to be spent. the labour terms are expressed of rupee value.DIRECT LABOR BUDGET: This budget gives as estimate of the requirements of direct labor essential to meet the production target. number and grade of workers etc. this budget makes provision for shift and overtime work and for the effective training for new workers on labour cost. The labor requirement budget is developed on the basis of requirement of the production budget given and detailed information regarding he different classes of labor e. manufacturing maintenance. This budget is prepared with a view too enable the personnel department to carry out programmers of training and training and transfer and to find out sources of labour needed so that every of effort may be made to remove difficulties arising in production the available workers in each department. This budget may be classified into labor requirements budget and requirement budget. millers. fitters. With a small change in output. administration expenses will increase but they may lag behind business activity. In other words. Much difficulty is not experiences in developing such budget as most of the administration expenses are of a fixed nature. 27 . if there is persistent fall in output. On the other hand. The budget may be classified into fixed cost. In other words. This budget covers the expenses incurred in framing policies. with persistent increase in output or business activity. fixed works overhead can be estimated on the basis of past information after taking into consideration the expected changes which may occur during the budget period. they are dependent upon sales in the ling run. the budget provides an executive. However. The Cost Account prepares this budget on the basis of figures available in the manufacturing overhead ledger or the head of the workshop may be asked to give estimates for the manufacturing expenses. Budget may be prepared be prepared for each administration department so that responsibility for increasing such expenses. In preparing the budget. The budget includes the cost of indirect material indirect works expenses. administration expenses will have to be reduced by discharging the services of some members of the staff and taking other economy measures. the budget provides as estimate of the central office and of management salaries. A good method is to combine the estimates of the Cost Accountant and the shop executive. Variable expenses are estimated on the bases of the budgeted output because these expenses are bound to change with the change in put. The budget can be prepared with the help of past experience and anticipated changes.MANUFACTURING OVERHEADS BUDGET: This budget gives an estimate of the works overhead expenses to be in creed in a budget period to achieve the production target. charitable cost and semi-variable cost. It can be broken into departmental overhead budget to facilitate control. directing the organization and controlling the business operations. they did not change. directing the organization and controlling the business operations. ADMINISTRATIVE EXPENSES BUDGET: This budget covers the expenses incurred in framing policies. Although fixed expenses remain constant and are not related to sale volume in the sort run. These expenses are based on the volume of sales set in the sales budget and budget and budgets are prepared for each item of selling and distribution overhead. sales budget.. and administrative sales budget. 28 . All expenses related to selling and distribution of the various products as indicated in the sales budget is included in it. Certain items of selling and distribution costs as cost of transport department are included in the departmental production cost budget from control point of view rather that including in selling and distribution costs budget.e. SELLING AND DISTRIBUTION COST BUDGET: This budget is the forecast of the cost selling and distribution for budget period and is clearly related to the sale budget. If the tax rate is available net income after taxes can also be computed. This budget determines income before taxes. cost of goods sold budget. Selling and distribution overheads are divided into fixed and variable category with reference to volume of sales. Separate budgets are prepared for variable and fixed items of selling and distribution overheads. selling budget. Long term expenses. As advertisement are spread over more than one period.BUDGETED INCOME STATEMENT: A budgeted income statement summarizes all the individual budget i. . reducing prices. off loading .PLANT UTILIZATION BUDGET: This budget lays sown the requirements of plant capacity to carry out the production as per the production programmer. can be taken. conducting advertisement campaign. Idle capacity in some departments may be utilized by making efforts to increase the demand for the products by providing after sale service. building budget etc. introducing lucky pries coupons. machine or group of machine and alternative courses of actions as working overtime. The main functions of this budget are: The will show the machine load in each department during the Budget period It will indicate the overloading on some departments. CAPITAL EXPENDITURE BUDGET: The capital expenditure budget gives an estimate of the amount of capital that may be needed for acquiring the assets required for fulfilling production requirements a specified in the production budget. sub-contracting etc. The capital expenditure budget is an important budget providing for acquisition of assets necessitated by the following factors: 29 . recruiting efficient sales staff etc. The budget is prepared after taking into consideration in the available productive capacities. This budget is terms of convenient physical units as weight or number of products or working hours. procurement or expansion of plants. Thus this budget provides an estimate of the expenditure to be incurred on research and development during the budget period. Before giving the approval. 30 .RESEARCH AND DEVELOPMENT COST BUDGET While developing research and development cost budget. Therefore. It is also seen that extent of progress made is commensurate with the expenditure incurred. A research and development budget is prepared taking into consideration the research projects in hand and the new research projects in hand and the new search and development projects to be taken up. The projects are finally approved by the senior executive. it should be clear in mind that work relating to research and development is different from that relating to the manufacturing function. these budgets are established on a long term basis: say for 5 to 10 years which can be further subdivided into short-term budgets on annual basis. a close watch is kept on the expenditure so that it may not exceed budget provisions. after the approval of the budget. Manufacturing function gives quicker results than Research and development witch may go on for several years. After fixation of the research and development cost budget. the expenditure on research and development is matched against the benefits likely to be availed of from the new project. As a rule research workers are less cost conscious: so they are not susceptible to strict control. the research executive fixes priorities for the various research and development projects and submits research and development projects authorization forms to the budget committee. other than cash/bank will have to be found out first to be put in the budget balance sheet. 2. closing balances. The balance sheet method 1. 3. In the opening balance of cash.CASH (FINANCIAL) BUDGET: The cash budget can be prepared by any of the following method: 1. Receipts and payments method 2. The balance sheet method: With the help of budget balances at end except cash and bank balance. estimated cash receipts are added and from the total of estimated cash payments re deducted to find out of the closing balance. a budgeted balance sheet can be prepared and the balancing figure would be the estimated closing cash/bank balance. The adjusted profit and loss method: In case of this method the cash budget is prepared in the basis of opening cash and bank balance of the various assets an liabilities. 31 . The adjusted profit and loss method 3. Thus under this method. Receipts and payments method: In case of this method the cash receipts from various sources and the cash payments to various agencies are estimated. This can be done by adjusting the anticipated. 000 units of sales is a typical example of a fixed budget. A master budget tailored to single output level of (say) 20. acute competition etc. But in practice. England. 32 . is as follows : “Thus summary budget incorporating its components functional budgets and which are finally approved and employed”. it is hardly of any use as a mechanism of budgetary control because it does not make any distinction between fixed. It is rigid budget and is drawn on the assumption that there will be no change in the budgeted level of activity. A fixed budget will. the level of activity and set condition will change as a result of internal limitations and external factors like changes in demand and price shortage of materials and power. be useful only when the actual level of activity corresponds to the budgeted level of activity. the highlights of the budget forecast”.MASTER BUDGET (FINALISED PROFIT PLAN) The master budget is consolidated summary of the various functional budgets. there dour. It has been defined as a budget which is designed to remain unchanged irrespective of the volume of output or turnover attained. variable and semi-variable costs and provides for no adjustment in the budget fixed as result of change in cost due to change in level of activity. The master budget is prepared by the budget committee in the basis of co-coordinated functional budgets and becomes the target summaries functional budget to produce a budgeted profit and Loss Account and a Budget Balance Sheet as at the end of the budget period. The definition of this budget given by the Chartered Institute of Management Accountant. It is also not helpful at all in the fixation of price and submission of tenders. in one report. FIXED BUDGET: This budget is drawn for one level of activity and one set of conditions. It has been defined as “a summary of the budget schedules in capsule form made for the purpose of presenting. or other variable factors such a number of employees. either due to the seasonal nature of the industry or to variation in demand. defines a flexible budget also called sliding scale budget as a budget which. Where there are general changes in sales. • Where the industries are engaged in make to order business like ship building. Where the undertaking is suffering from shortage of a factor o production such as materials. A flexible budget making an intelligent classification of all expenses between fixed. • • Where the business is a new one and it is difficult to foresee the demand. Where the business units keep on introducing new products or make changes in the its products frequently. • Where the level of activity during the year varies from period. semi-variable and variable because the usefulness of such a budget depend upon the accuracy with which the expenses can be classified. labors. 33 . This. is designed to change appropriately with such fluctuations. turnover. • • • Where an industry is influenced by changes in fashion. capacity etc. a flexible budget gives different budgeted costs for different levels of activity. Such a budget is prescribed in the following cases. plant. the level of activity depends upon the availability of such a factor of production. by recognizing the difference in behavior between field and variable costs in relation to fluctuations in output.FLEXIBLE BUDGET: The chartered Institute of Management Accountants. This budget is more useful than a basic budget. Such system of budgeting was more popularly used in government department and many business enterprises. CURRENT BUDGET: A current Budget can define a budget which is related to the current conditions and is prepared for use over a short period of time. These budgets help in business forecasting and forward planning. This does not take into consideration current conditions and can be attainable under standard conditions. SHORT TERM BUDGET: This budget is defined as a budget. Such budgets are prepared for those activities the trend in which is difficult to foresee over longer periods. after Second World War. which is prepared for period longer than a year. Capital Expenditure Budget and research and Development Budget are examples of long-term budgets. travel. But is such system of budgeting control of performance in terms of physical units or the related costs cannot be achieved.A. LONG-TERM BUDGET: A Long-Term budget can be defined as a budget.BASIC BUDGET: A basic budget has been defined as a budget which is prepared for use unaltered over a ling period of time. as a target of lays down will be corrected to current conditions.. Cash budget and material budget are examples of short term budget Performance Budgeting has its origin in U.S. office expenses. estimating or projection rupee value for the various accounting heads or classification of revenue and cost. 34 .e. in the traditional budget amount are earmarked for the objects of expenditures such as salaries. in such system of budgeting the money concept was given more prominence i. It ties to rectify some of the shortcoming in the traditional b. grant in aid etc. which is prepared for period less than year and is very useful to lower levels of management for control purposes. This technique was introduced in the budgeting in the state of Georgia by Mr. it involves establishment or well defined centers of responsibilities. ZBB is not based on the incremental approach and previous year’s figures are not adopted as a bade. Jimmy Carter who was then the Government of that state. Taking Zero 35 .. forecasting the amount of expenditure required to meet the amount of expenditure required to meet the physical plan laid down and evaluation of performance.Performance oriented budgets are established in such a manner that each item of expenditure related to a specific responsibility centre is closely linked with the performance of that centre. ZBB was tried in federal budgeting as a means o controlling state expenditures. The use of zero based budgeting s a managerial tool has become increasingly popular since the early 1970’s It is steadily gaining acceptance in the business world because it is providing it utility as a tool integrating the managerial function of planning and control. The basic issue involved in the fixation of performance budgets is that of developing work programmers and performance expectation by assignees responsibility. USA. establishment for each responsibility centre-a programmed of target performance in physical units. necessary for the attaining of goals and objectives of the enterprise. zero is taken as a base of the name goes. Rather. ZERO BASED BUDGET: This budget is the preparation of budget starting from Zero or from a clean state As a new technique it was proposed by patter peal of Texas Instruments inc. Funds will not be available as a matter of course. by declining the budget from the past. it ensures team work. Budget finally approved represents the judgment of the entire organization and not merely that of an individual or a group of individuals. It is helpful in reviewing current trends in the business and in determining further policy of the business because current and future treads are studied in the preparation of the budget.As a base. Thus. the past mistakes are not repeated. Funds required for any for the next budget period should be obtained by presenting a convincing case. The most important advantage of a budgetary control is to enable management conduct business in the most efficient manner because budgets are prepared to get the effective utilization and resources and the realization of objectives as efficiently. Budgetary control takes the help of different levels of management in the preparations of the budget. a budget is developed on the basis of likely activities for the future period. It lies down as objective for the business as a whole even though a monetary reward is not offered the budget becomes a game –a goal to achieve or a target to shoot at – and hence it is more likely to be achieved or hit that if there was no predetermined goal or target. The budget is an impersonal policeman that maintains ordered effort and brings about efficiency in result. Management by exception is possible because of actual and budgeted results points out weak spots so that remedial action is taken against week spots which are not in conformity with the budgeted performance. In ZBB. materials. Everyone working in the concern knows what exactly to do because budgetary control laid emphasis on the staff organization. It ensures effective utilization of men. It ensures that individual responsibility are clearly defined and that the required authority commensurate with the responsibility is delegated so that buck passingay is prevented when the budgeted results are not achieved. 36 . machines and money because production is planned according to the availability of these items. Budgetary control crates conditions for setting up a system standard costing. Departmental blaming each other if targets are not attained. Budget can be seen pressure devices imposed by management. Bad labor relations 2. This is often coupled with “empire building” in order to enhance the prestige of department. Departmental conflict arises due to: 1. i. Waste may arise as managers adopt the view. 37 . Dispute over resources allocation 2. It is difficult to reconcile personal/individual and corporate goals. “we had better spend it or we will lose it”.e.g. Responsibility versus controlling. some costs are under the influence of more than one person. Power costs. particularly in perception terms.DISADVANTAGES OF A BUDGET: While budgets may be essential part of activity they do have number of disadvantages. e. Inaccurate record-keeping. thus resulting in: 1. 00. A feed mixing plant at Bhongir so as to supply cattle feed to formers of the two districts . taking the milk from the factory and sending it to the shops where they give this milk to the consumers by putting coins. taking the milk from the factory and sending it to the shops where they give this milk to the consumers by putting coins.e. The union is having 14 milk chilling centers in Nalgonda district and 3 in Rangareddy District.T Rama Rao Garu to supply the homogenized. As automatic milk vending i. Rangareddy Cooperation milk producers’ union ltd. ABOUT MOTHER DIARY The Nalgonda –Rangareddy Co-operative Milk Procedures Union Limited was registered on 25-02-1986 to cater the needs of milk procedures of two districts Nalgonda and Rangareddy.The mother dairy was started in 1987 at Hayath Nagar with the capacity of 2. 38 . thick milk with high quality.COMPANY PROFILE GENESIS This is the statewide enterprise of co-operatives for the dairy development. Presently this union is renamed as NARMAC’s “Nalgonda-Rrangareddy Milk Mutual Co-operative Union ltd”.. In 1989 an extra unit in mother dairy was inaugurated by the humble chief minister N.e. And it has been named as “NARMUL” (MOTHER DAIRY) “nalgonda.000 liters per day.rangareddy mutual union ltd”.. At first this unit was started as automatic milk vending i. Its genesis in 1981 with a three tire cooperative structure (Andhra Co-operative structure). mother dairy was merged with’ Nalgonda. In September 1992. The Andhra Pradesh dairy development co-operative federation (APDDCF) with million of farmers as its members for dairy development. From 15-01-2003 and is paying highest procurement price to its members when compared to the other union in the state. In September 1992 , mother dairy was merged with’ Nalgonda , Rangareddy Co-operation milk producers’ union ltd. And it has been named as “NARMUL”(MOTHER DAIRY) “Nalgonda-Rangareddy Mutual Union ltd” .presently this union is renamed as NARMAC’s “Nalgonda-Rangareddy Milk Mutual Aied Co-operative Union ltd from 15-01-2003 and is paying highest procurement price to its members when compared to the other union in the state. AT PRESENT THE UNION IS PROCESSING MILK Milk producers co-operatives societies Milk producers association centers Milk collection routes Total milk producers supplying milk 358 776 61 66,700 The company during the flush section (Sep - March) and “Lean “Sean (April-Aug ) of every year, maximum and minimum PURITY and QUALITY, which make it , trusted Name in thousands of households. Mother dairy is the determiner people who have setup a good marketing network. The company at present linked up with Mother Dairy India ltd. From 15 th January 2005. 39 ACTIVIES OF THE COMPANY ● Milk collection from rural areas ● Processing milk and convert milk into various milk products ● Taking up of fodder development activities. ● Undertaking various technical input activities such as artificial insemination. ● Foot and mouth vaccination etc., OBJECTIVES 1. Organize co-operatives if milk producers at village levels. 2. Provides essential inputs to enhance milk production, feed and fodder products cross breeding programmers, veterinary aid ,and take up development programs to provide effective leadership and managements skills to the milk producers to help them manage their own co-operatives. 3. Develop infrastructure for processing milk and manufacturing of dairy products. 4. Fulfill the consumer needs of liquid milk and milk products in two districts new products and packaging lines in tune with the changing scenario of consumer market and needs. 5. Integrate dairy development with over all rural development efforts and Provide greater employment to the rural poor. 6. Today there are 7,000 co-operatives with 300 all –women co-operatives and membership of over 8 lakh people across two districts. 40 BRAND NAME: Mother Dairy release its products into the markets with the brand name “Mother Dairy’ written in white colour on blue colour four sided double lined background which is very good decent in appearance. LOGO OF THE COMPANY The logo of the company is a laughing cow with a bell on its neck, on a milk cauldron followed by the name “NARMAL” and a right human hand. MARKETING STRATEGY IN PACKAGING FILMS The films used for packing are white in four colour with their brand name –Mother Dairy in middle followed by the milk /milk product name both in English and Telugu and with the net weight. The also has there company logo and MARKETED BY Processed and packed by Ingredients Quantity MRP Best before both in Telugu and in English and a 3d symbol for symbolizing fresh and pure. The union is implementing various schemes for its members for improving milk production, such as first aid, medicine, fertility, camps. Fodder development schemes, technical assistance and insurance schemes for its members and their cattle. 41 500ml.5% ►best before 2 days when stored under refrigeration below 4C ►made from homogenized and pasteurized toned milk ►Available in 200g sachets 42 . sachets CURD ►has milk fat 3. 1 litre also PASTEURIZED DOUBLE TONED MILK ►has milk fat 1.5%and milk SNF 8.MILK AND MILK PRODUCTS Mother dairy products are Milk in two form Pasteurized toned milk in three volumes Pasteurized double toned milk in two volumes Curd in one volume Buttermilk in one volume MILK The milk taken form various milk supplies is sent into the market in 2 different forms. PASTEURIZED TONED MILK ►has milk fat 3.0% and milk SNF 8.0% and milk SNF 8.5 ►best before 2days when stored under refrigeration below 8-C ►Homogenized ►available in 200ml.5 % ►Best before 2 days when stored under refrigeration below 8C ►Homogenized ►made from toned milk ►Available in 200ml.500ml. spires and conditions ►Best before 4 days when stored below 8C ►made from pasteurized milk ► Salted ► Available in 200ml sachets All These Products Are Processed and Packed by NARMUL LTD. water. salt. Mother Dairy Hayatnagar Marketed by Mother Dairy India ltd.BUTTER MILK ►has milk solids. Patparganj Delhi DEPARTMENTS IN THE COMPANY 43 . .►Production department ►Marketing department ►Material or purchase department ►Plant ►Finance or accounts departments ►Processing department ►Personal department ►Pre pack department ►Civil department ►Transport department ►Quality control department ►Butter & Ghee ►Security department ►HRD activities in the company TRAINING AT MOTHER DAIRY They are conducting regular training programmers in all units to Cooperative members for improving milk production and to make aware of first aid. They are conducting regular training programmers for employees to maintain high quality of all milk production through NDDB. INDUSTRAIL PROFILE 44 . cross breading programmers etc. Medicine. fertility methods. vide clippings and other appliance. through audio visual aids. The investment in dairying made under the 5 year plans is not commeasured rate with its output. Not withstanding its top place and the many benefits it bestows on the lower rungs of the rural society. giving both estimate. According to one estimate. For example.500051 millions exceeding that from paddy (rive). Consequently.Milk is India’s NO . Its shaped like a pyramid with the base made up of vast market for low cost milk the bulk of the demand for milk is among the poor in urban areas whose individuals requirement is small maybe a glass full for use has white beard for their tea and coffee. social scientist and others. pasteurized milk . giving both strength and volume to the modern sector. In 1994-95. India’s dairy market is multilayered. its potential has not been adequately tapped. Presently. rarely 778 out of 3700cities and towns as served by its milk distribution . quality. 45 . economist. dairying has not received due attention from planners. Network. In the major cities lies an immense growth potential for modern sectors. Nevertheless. dispensing hygienically packed wholesome. it acts sizable volume millions of liters per day. the value of its output based producer price Rs. the packed milk segment would in the next five years. The narrow tip at the top is a small but an affluent market for western type milk products.1 farm of commodity in terms of its contribution to the national economy. the packed milk segment would double in the next 5 years. Operation Flood’s third phase was completed in 1996 and has to credit a number of significant achievements. finance and support producer-owned and controlled organizations . The National Dairy Development Board was created to promote. GENESIS NDDB began its operations with the mission of marketing dairying a vehicle to a better future for millions of pressrooms milk producers. 46 . tradition with modernity stagnation with growth transforming dairying into an instrument for the development of India.NATIONAL DAIRY DEVELOPMENT BOARD ABOUT NDDB It was found in 1965 to replace the exploitation with empowerment. Fundamental to NDDB’s efforts are cooperative principles and cooperative strategies.NDDB’s programmers and activities seek to strengthen farmer cooperatives and support national policies that are favorable to the growth of such institutions. The mission achieved thrust and direction with the launching of “Operations Flood”. Since its inception.17. NDDB also promotes other commodity-based cooperatives.5 million liters of milk every day. 1987 The new body corporate was declared an institution of national importance by the Act. by an Act of India’s Parliament –the NDDB Act 1987 (37 of1987). allied industries and veterinary biological on an intensive and nation-wide basis. with effect from 12 October .575 village dairy cooperatives federated into s and 15 federations procured on average 21. the Dairy Board has planned and spearheaded India’s Dairy programmers by placing dairy development in the hands of milk producers and the professionals they employ to manage their cooperatives. 47 . 12.ACHIEVEMENTS As on March 2006.was merged with the erstwhile Indian Dairy Corporation.4 million farmers are presently members of village dairy cooperatives. India’s 1. In addition. CONSTTUTION The National Dairy Board – initially registered as a society under the Societies Act 1860 -. a company formed and registered under the Companies Act 1956 . Products of Indian Dairy Industry State All India Andhra Pradesh Arunachal Pradesh Assam Bihar Goa Gujarat Haryana Himachal Pradesh J&K Karntaka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nalland Orissa Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh West Bengal A&N Islands Chandigarth D&N Haveli 2002-03 72128 4473 43 719 3420 38 4913 4373 714 1167 3970 2343 5377 5193 62 59 17 46 672 7165 6487 35 4061 57 12934 3415 22 43 4 2003-04 75424 4842 45 725 3440 41 5059 4527 724 1232 4231 2420 5442 5609 65 61 20 48 733 7394 6923 35 4273 76 13418 3441 22 43 8 2004-05 78286 5122 46 667 3252 44 5269 4679 742 1286 4471 2532 5519 5707 68 62 18 48 850 7706 7280 35 4586 77 14152 3456 23 42 8 2005-06 80607 5521 42 683 2489 45 5312 4850 761 1321 4599 2605 4761 5849 66 64 14 51 876 7777 7255 35 4910 77 13857 3471 22 43 8 2006-07 84406 5814 42 682 2664 45 5862 4978 756 1360 4797 2718 5283 6094 68 66 14 57 929 7932 7758 37 4988 90 14648 3515 23 43 8 2007-08 86159 6584 46 705 2869 46 6089 5124 773 1389 4539 2419 5343 9238 69 68 15 58 941 8173 7789 45 4622 79 15288 3600 26 43 8 2008-09 88082 6959 46 727 3180 48 6421 5221 786 1414 3857 2111 5388 6379 71 69 15 63 997 8391 8054 48 4752 84 15943 3686 25 44 8 2009-10 90715 7252 48 739 2974 57 6745 5222 870 1422 3917 2025 2206 6567 75 71 16 69 1283 8554 8310 46 4784 46 16512 3790 24 43 4 48 . 0 60.1 72.4 78.1 Year 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Production (Million Tones) 55. foreign exchange savings and increased farmer incomes.4 million farmer members of which 3.6 63. A commitment to help rural producers help themselves has guided the Dairy Board’s work for mere than 40 years.8 66.7 58.Production in India Table.2 88.6 84. This commitment has been rewarded with achievements made by cooperative dairies in milk production.1 90.4 86. and per capita availability of milk.7 (000 tones) Per Capita Availability (gms/day) 178 182 187 194 197 202 207 213 217 220 225 230 231 229 ACHIVEMENTS OF DAIRY CO-OPERATIVES.2 millions were women 49 . FACTS AT A GLANCE The Dairy Cooperative Network (As March 2006) ● ● ● ● Includes 170 milk unions Operates in over 346 districts Covers around 1.3 80. employment generation.1 75.575 village level societies Is owned by around 12. 17.2 69. Marketing ● In 2005-06.8 per cent compounded over the last five years. Milk production increased from 21.Milk Production ● India’s. the net increase in availability is around 2 per cent per year. ● Per capita availability of milk was 241grams per day in 2005-06. up from 112grams per day in 1968-69. average daily cooperative milk marketing stood at 168. major cities and mor than 800 towns/cities. ● India’s 3.06 lakh liters. the daily milk supply to each 1000 urban consumer has increased from 17. ● during the last decade. 50 . ● Dairy Cooperatives now market milk in all metros.2 million MT in 1968-69 to 97.5 to 58.9 percent annual growth of milk production between 1995-96 and 2005-06 surpasses the 2 per cent growth in population.1 million MT in 2005-06. annual growth has averaged about 5.8 liters. 51 . ● Automatic Milk Collection Unit (AMCU) and Bulk Milk Cooler (BMC) at grass root level-preserve quality and reduce post-procurement losses.Innovation ● ● Bulk vending –saving money and the environment.200 kilometers to deficit areas. Milk travels as far as 2. carried by innovative rail and road milk tankers. 353 90 278 20 ** 191 1.714 209 7.832 84 18.025 175 5.838 750 246 1.130 66 3 0 3 7 5.749 12.447 303 2.507 9 430 706 16.557 8 2.647 779 144 1.802 4 203 57 784 1.449 1.17.087 1.382 391 ** 80 10.Operation Flood Achievements Table.2 State/UT Andhra Pradesh Assam Bihar Delhi Gujarat Goa Haryana Himachal Pradesh Jammu & Kashmur Jhakhand Karnataka Kerala Madhya Pradesh Maharashtra Nagaland Orissa Puducherry Punjab Rajasthan Sikkinm Tamil Nadu Tripura Uttar pradesh West Bengal ALL-INDIA Farmer Women Milk Milk No of DCA Members Members Procurement Marketing Organized (000) (000) (TKgPD) (TLPD) (Cumulative) 4.416 39 NA 633 3 38 7 ** 0 527 132 37 398 0 60 16 50 152 0 639 1 246 65 3.183 NA 12.776 2.194 553 NA 6.876 4 861 185 12.808 PERSPECTIVE OF 2010 The Perspective 2010 plan of the Dairy Board maps the future of dairying in 52 .350 2.282 5.711 848 315 2.441 52 405 25 ** 6 2.749 4 158 70 526 1.114 3.008 19.416 265 NA 2.961 764 457 2.458 19 261 20 ** 2 1.164 104 6.085 3 828 336 21.014 8 1.537 78 2.637 3 142 36 405 594 7 1. Its focus is increasingly affluent middleclass. 12% for cow milk. phosphorus. lactose and proteins.5%). The plan was realized with the successful completion of the Operation Flood Programmer and has been developed by the Stat Milk Marketing Federations and the Milk Producers’ Cooperative Unions in consultation with the Dairy Board. Milk occupies pride of place as the most coveted food in the diet. it is high volume in calcium. This system is bases of operating flood. Milk based sweets are culinary delight in all homes through out the years. Buffalo milk is the delight of the milk processor for its more profitable handling.India. It has 30% higher total solids compare to cow milk an average of 16% vs. EMERGING DAIRY MARKETS Food service instuitional market 53 . numbering some 300 million all most the population of the United States which is confined to well define urban pockets and is easily accessible. 3. The Perspective 2010 goals and strategies to meet them have been drawn by its actual implementers – Federation and unions and supported by NDDB. after wheat and rice. The preferred dairy animal is the buffalo. yielding 2 or 3 liters of milk per animal. Valued for its high fat content (7% vs. Its focus is in the small rural farmer having 1 or 2 cows or buffaloes. Some 65% of the world buffalo milk produced in India. setting realistic goals for Strengthening Cooperative business. THE WINNING EDGE The aspects of India’s modern dairy sector are particularly noteworthy vast market for dairy products are being built as disposable incomes increase. Production Enhancement Assuring Quality. the world’s largest dairy development programmer. The milk production is predominantly rooted in the cooperative system. and creating a Information and Development Research. which ride piggyback on the fast food revolution sweeping the urban area. which is twice the total production of the past 15 years.6 million tones. Ingredients markets A boom is forecast in the market of dairy products used as raw material in pharmaceutical and allied industries. The one index to the statement is the fact that the projected total milk output over the next 15 years (1995-2010) would exceed 1457.It is growing at double the rate of consumer market Defense market An important growing marker for quality products at reasonable prices. ANALYSIS AND INTERPRETATION 54 . Parlor market The increasing away from home consumption trend opens new vistas for ready to serve dairy products. India with her sizable dairy industry growing rapidly and on the path of modernization would have palace in the sum of prosperity for many decades to come. 35 0.01 3.07 16.5 13.57 82.5 1.07 0.07 221.99 6627 291.BUDGET ESTIMATIONS OF MOTHER DAIRY DETAILS OF INCOME 2005-06 Table3 S.07 02.45 NIL 03 NIL 238 12 11.67 792 47.26 12.28 8778.NO PARTICULARS INCOME MILK SOLD SELLING OF MILK ITEMS a)GHEE b)CHEESE c)CURD d)SKIMMING MILK e)BUTTER MILK f)MILK POWDER CATTLE FEED MILKSUPPIERS SHARE BUILDING RENT OTHER INCOMES BANK LOAN CLOSING STOCK TOTAL (RS.9 36.25 8361.23 360 25.59 39 400 101.51 144 72.16 0.31 2.77 40 76.03 417.01 14.48 ADV ADV ADV FAV FAV ADV FAV ADV FAV FAV ADV ADV ADV ADV 55 . IN LAKHS) BUDGETED ACTUALS VARIENCE 6771 363.74 59.84 0.8 0.1 709. 91 261.49 252.93 NIL NIL NIL NIL 138.33 NIL 11.6 1.93 NIL NIL NIL NIL 1.81 81. IN LAKHS 489.52 297.24 0.35 NIL 581.56 NIL 7 591.6 28.87 99.24 15.9 1.78 FAV FAV ADV ADV FAV ADV FAV FAV FAV ADV FAV FAV ADV FAV ADV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV ADV OFFICE REPAIRS AND MAINTENANCE A)FURNITURS AND TYPE WRITERS B)COMPUTERS MAINTENANCE OF LABORATORY ADMINISTRATION CHARGES FRIGHT CHARGES CATTLE FEED TRANSPORT EMPLOYEES SALARIES a)PENSION PROVIDENT FUND PRINTING AND STATIONARY MARKETING EXPENSES SALES TAX CENTREL TAX INCOME TAX AUDITOR FEES A)FREE AUDIT FEES B)ANNUAL AUDIT FEE C)TRANSPORT EXPENSES CONVERSION EXPENSES A)PIECE WORKLABOUR CHARGES B) TRANSPORT CHARGES VRS DIVIDEND OPENING STOCK INTEREST ON LONG TERM LOAN A)NDDB B)APCOB.86 2 4.17 15 NIL NIL 0.03 NIL 2.22 FAV 44 FAV 21 60.9 13.CANARA BANK BUILDING AND MACHINERY MATERIALS TOTAL NET PROFIT FAV FAV FAV FAV ADV 56 .55 254.96 RS.2 15 2.02 NIL 95.1 NIL 98.7 400 123 8106.51 252.18 3910.32 1.4 NIL 1.74 105.2 15.54 91.75 NIL 590 1.26 173.1 21.02 NIL 10.28 14.54 0.8 14.33 270 58.DIESEL CHARGES REPAIRS IN PLANT AND MACHINERY REPAIRS OF VEHICLES MANTENANCE AND REPAIRS OF BUILDING 4400 1002 235 400 NIL 180 8 40 NIL 270 70 15 310 51.DETAILS OF EXPENSES BUDGETED ACTUALS VARIANCE 2005-06 TABLE4 MILK PURCHASES MILK PURCHASED FROM OTHER UNIONS TRANSPORT CHARGES FOR MILK MILK PRODUCTS PURCHASED A)MILK POWDER B)CHEESE CATTLE FEED MATERIAL PURCHASING BAGS FOR CATTLE FEED PURCHASING OF STORES MATERIAL PURCHASING OF POLYTHIN FILM A)OUR UNION OTHER UNIONS PACKING MATERIAL ELECTRICITY.9 15 30 20 NIL NIL NIL NIL 140 20 20 15 NIL 106.88 35.1 NIL 98.78 1046 214 460.15 0.13 47.12 4.73 0.4 8.91 48.27 7.94 NIL 165.48 282.18 4.82 15.4 NIL 8.26 400 130 8697.85 4.94 NIL 14. 5 57 .Table. 31 0.35 NIL 98.86 NIL ACTUALS 157.D.75 0.28 8.7 NIL 2.65 39.66 0.11 5.02 0.02 NIL 0.22 0.1 0.04 0.96 297.9 0.22 5.5 105.81 0.2 8.44 0.25 0.08 0.28 0.69 NIL 2.56 0.02 0.34 7.4 51.17 0.32 NIL VARIANCE 6.74 80.37 2.3 NIL 0.27 6.96 33.91 1.DETAILS OF UTILITIES 2005-06 RS.92 0.2 1 0.22 0.42 4.05 1.2 0.62 1.54 NIL FAV FAV FAV FAV FAV FAV FAV ADV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV ADV FAV FAV ADV FAV FAV ADV FAV FAV FAV ADV FAV ADV FAV FAV FAV ADV ADV FAV FAV FAV FAV FAV ADV FAV 58 .04 358.7 1.55 0.03 0.15 3.36 29 14.1 3.08 0.01 0.04 0.2 3.04 0.04 4.01 NIL 0.45 15.5 NIL 2 28.52 4.81 NIL 0.59 96.74 85 2.44 NIL 2.35 8 0.5 14.1 0.1 0.03 0.96 47.09 0.8 43 0.1 0.24 0.08 1.5 5.44 4 4.42 NIL 0.42 13.16 NIL 98.28 NIL 0.03 1.68 0.45 NIL 2 0.4 5. IN LAKHS UTILITIES A)ELECTRICITY CHARGES B)GENERATOR DIESEL C)WATER CHARGES D)PERNUS OIL TOTAL PLANT AND MACHINERYREPAIRS A)OIL AND LUBRICANTS B)REPAIRS C)FACTORY LICENSE FEES D)BOILER LICENSE FEES E)AMONIA GAS F)SALT G)PURCHASE OF SPARE PARTS TOTAL REPAIRS OF VEHICLES A)DIESEL B)OIL ANDLUBRICANTS C)TAX INSURANCE D)REPAIRS TOTAL ADMINISTRATIVE EXPENSES 1)BANK CHARGES 2)MANAGERS MEETING CHARGES 3)BOARD MEETING CHARGES 4)GENERAL BODY MEETING EXPENSES 5)T.55 5.4 5.63 0.07 0.09 0.A.85 0.02 0.4 0.24 0.4 1.39 99.5 5.48 0.01 0.09 0.A 6)HOUSE RENT FOR CHAIRMAN 7)CASH INSURANCE 8)INSURANCE 9)RENT 10)ELECTIONS EXPENSES 11)CAR RENT 12)MEETING EXPENSES 13)LEGAL FEES 14)FESTIVAL EXPENSES 15)NEWS PAPER CHARGES 16)POSTAGE 17)TELEPHONE CHARGES 18)DISTRIBUTORS MEETING CHARGES 19)MUNCIPALTAXES 20)PURCHASE COMMITTEECHARGES 21)PRIVATE SECURITY SALARY 22)TENDER NOTIFICATION 23)EMPLOYEES TRAVELLING EXPENSES 24)TRAINING CHARGES 25)AUDITORS TRAVELLING EXPENSESE 26)STORES INSURANCE 27)STOCK INSURANCE 28)TRANSPORT COMMITTEE CHARGES 29)GENERAL LICENSE EXPENSES 30)STAFF UNIFORM 31)MAY DAY EXPENSES 32)TYPING CHARGES TOTAL MARKETING EXPENSES A)ADVERTISMENT EXPENSES BUDGETED 164 164 164 164 656 1.2 0.42 14.03 0.4 0.64 135 149.6 0.92 0.45 0.41 67.5 NIL 1.3 6.2 NIL NIL 0.8 0.01 NIL 0 NIL 0.34 NIL NIL 0.2 0. 59 . 55 12 3 1 8.7 60 .PLANT C)FLAVOURED MILK PLANT D)COMPOUND WALL CONSTRUCTION E)BOREWELLS F)C.ROAD CONSTRUCTION TOTAL Table.C.87 1 2 2 20.07 FAV FAV ADV FAV ADV ADV FAV FAV FAV FAV FAV FAV FAV ADV FAV FAV FAV FAV ADV A)REFRIGERATION EXPENSES MILK COOLING SECTION SURYAPET A)GATE CONSTRUCTION MOTHER DAIRY HAYATHNAGAR A)COLD STORAGE CONSTRUCTION B)E.5 NIL NIL 1 NIL NIL NIL 1.5 1.78 46.25 27 0.65 12 3 1 8.07 1 4.16 NIL 1.T.78 46.8 1 0.Table.5 NIL 8.13 NIL NIL NIL 23.5 1. INLAKHS BUDGETED ACTUALS VARIANCE MILK COOLING SECTION MALLEPALLY A)3RD PHASE ENTERTAINMENT B)COMPOUND WALL CONSTRUCTION C)COMPRESSOR BED MILK COOLING SECTION KODADA A)REFRIGERATION B)OFFICE RENEVATION MILK COOLING SECTION MOTHKUR A)OFFICE CONSTRUCTION MILK COOLING SECTION RAJAPET A)GUEST HOUSE CONSTRUCTION MILK COOLING SECTION SURYAPET A)COMPRESSOR BED MILK COOLING SECTION ALERU A)FARMERS GUEST HOUSE B)BATHROOMS C)COMPOUND WALL MILK COOLING SECTION TANDUR A)COMPOUND WALL CONSTRUCTION MILK COOLING SECTION MAAL A)CONSTRUCTION FOR FEED MILK COOLING SECTION MIRYALAGUDA 1 4.6 DETAILS OF CIVIL CAPITAL EXPENSES 2005-06 RS.8 NIL 0.1 NIL 9.2 NIL NIL NIL NIL NIL 79.16 NIL NIL NIL NIL 0.25 27 1 1 3 2 2.1 NIL 70 NIL NIL NIL 8. 24 7.8 28.56 ADV FAV FAV INTERPRETATION OF 2005-2006 61 .67 3.2 FAV FAV FAV FAV FAV FAV 20.CALCULATORS B)PURCHASING OF COMPUTERS C)FURNITURE ALMARAHS DAIRY ITEMS MILK CANS MILK CRAYTES TOTAL PURCHASING OF PLANT AND MACHINERY MOTHER DAIRY 1)FREE PACK MACHINE 2)FREE PACK SECTION TOTAL 2 2 0.2 2 NIL 6.01 10.11 10.9 20.23 38.2 NIL NIL NIL 4 8 12 VARIANCE 2 2 0.2 6 8 18. IN LAKHS BUDGETED ACTUALS OFFICE EQUIPMENT A)OFFICE EQUIPMENT.9 41.DETAILS OF PURCHASING 2005-2006 RS. construction of cooling section building in kodada. DETAILS OF PURCHASE:-Details of purchase is less in both under machinery and office. 62 . miryalaguda. building rent are were favorable but other incomes columns showed unfavorable items which resulted that budgeted are more than actual. So finally ended up with less income compare to budgeted. purchasing bags for cattle feed.. Dairy items like milk cans and crates are given more importance. Cattle feed items. packing material.INCOME:-In this year milk sold is less than budgeted and also less income generated from the selling of milk items. It is good sign CIVIL CAPITAL EXPENSES:-The civil capital expenses made is more because concentration given on works such as construction of cattle feed building. Other expenses such as electricity charges. and repairs of vehicles are also increasing compared to budgeted. concentration is on construction. hayathnagar etc. EXPENSES:-But in the expenses net profit gained in actuals is more because of less in the total expenses. milk suppliers share. BUDGET ESTIMATIONS OF MOTHER DAIRY DETAILS OF INCOME (2006-07) Table. IN LAKHS VARIANCE 71 ADV 65 FAV 412 FAV 40 FAV NIL 4 FAV 9 FAV 83 FAV 5 ADV 8 FAV NIL 80 FAV 57 ADV 568 FAV 3 4 5 6 7 8 Table.8 SNO PARTICULARS 1 2 INCOME MILK SOLD SELLING OF MILK ITEMS a)GHEE b)CHEESE c)CURD d)SKIMMING MILK e)BUTTER MILK f)MILK POWDER CATTLE FEED MILK SUPPLIERS SHARE BUILDING RENT OTHER INCOMES BANK LOAN CLOSING STOCK TOTAL BUDGETED ACTUALS 4875 660 NIL NIL NIL NIL NIL 140 25 10 20 300 780 6810 4804 725 412 40 NIL 4 9 223 20 18 20 380 723 7378 RS.9 63 . 5 37.7 6.45 954.8 0.25 NIL 0.3 58.25 40 10 50 0.7 380 8 37.7 85.5 0.45 450 8 52 10 NIL NIL 2.10 64 .45 274.5 NIL 225 50 92 20 1 0.55 411 358.75 50 10 50 2 1 NIL 80 40 27.25 15 510 6423.45 0.05 15 8 3.DETAILS OF EXPENSES 2006-2007 RS IN LAKHS 1 2 3 4 MILK PURCHASES MILK PURCHASED FROM OTHER UNIONS 5 6 7 8 9 10 11 12 13 14 15 16 17 TRANSPORT CHARGES FOR MILK MILK PRODECTS PURCHASED A)MILK POWDER B)CHEESE CATTLE FEED MATERIAL PURCHASING BAGS FOR CATTLE FEED PURCHASING OF STORES MATERIAL PURCHASING OF POLYTHIN FILM A)MILK B)GHEE C)GHEE D)BUTTER MILK PACKING MATERIAL ELECTRICITY.5 37.75 15 NIL 293.5 37.75 NIL NIL 55 55 85 NIL 510 6130 680 175 350 130 6785 25 ACTUALS 3350 315.45 15 217 53.2 2.7 3 0.25 70 NIL 14.8 185 537 NIL 225 6 20 10.6 10.8 34.55 0.75 1 NIL 25 15 57.5 26.DIESEL CHARGES REPAIRS IN PLANT AND MACHINERY REPAIRS OF VEHICLES MAINTENANCE AND REPAIRS OF BUILDING OFFICE REPAIRS AND MAINTENANCE A)FURNITURES AND TYPEWRITERS B)COMPUTERS MAINTENANCE OF LABORATORY ADMINISTRATION CHARGES EMPLOYEES SALARIES a)PENSION PROVIDENT FUND PRINTING AND STATIONARY MARKETING EXPENSES SALES TAX CENTRAL TAX INCOME TAX AUDITOR FEES A)FREE AUDIT FEES B)ANNUAL AUDIT FEES C)TRANSPORT EXPENSES CONVERSION EXPENSES A)PIECE WORK LABOUR CHARGES B)TRANSPORT CHARGES VRS DIVIDEND OPENING STOCK TOTAL CASH PROFIT(6180-6130) INTEREST ON LONG TERM LOAN A)NDDB B)APCOB DEPRECIATION ON BUILDING TOTAL NET PROFIT BUDGETED 3580 100 160 300 NIL 135 5 25 37.75 20 0.1 60.55 230 855 15 523 45 FAV ADV ADV ADV ADV ADV FAV FAV FAV FAV FAV ADV FAV ADV FAV FAV FAV ADV FAV ADV FAV FAV FAV ADV ADV ADV FAV ADV 18 19 20 21 22 ADV FAV FAV ADV ADV ADV ADV ADV ADV FAV ADV ADV 23 24 Table.55 115 7308 70 VARIANCE 230 215 25 237 NIL 90 1 5 68.3 0.5 37. 2 0.01 0.14 7.25 1 0.25 0.35 0.65 0.14 7.5 NIL 0.25 217 1.7 42 21.14 7.4 1.5 3 0.75 48.A 6)HOUSE RENT FOR CHAIRMAN 7)CASH INSURANCE 8)INSURANCE 9)RENT 10)ELECTIONS EXPENSES 11)CAR RENT 12)MEETING EXPENSES 13)LEGAL FEES 14)FESTIVAL EXPENSES 15)NEWS PAPER CHARGES 16)POSTAGE 17)TELEPHONE CHARGES 18)DISTRIBUTORS MEETING CHARGES 19)MUNCIPALTAXES 20)PURCHASE COMMITTEECHARGES 21)PRIVATE SECURITY SALARY 22)TENDER NOTIFICATION 23)EMPLOYEES TRAVELLING BUDGETED 56. IN LAKHS UTILITIES A)ELECTRICITY CHARGES B)GENERATOR DIESEL C)WATER CHARGES D)PERNUS OIL TOTAL PLANT AND MACHINERYREPAIRS A)OIL AND LUBRICANTS B)REPAIRS C)FACTORY LICENSE FEES D)BOILER LICENSE FEES E)AMONIA GAS F)SALT G)PURCHASE OF SPARE PARTS TOTAL REPAIRS OF VEHICLES A)DIESEL B)OIL ANDLUBRICANTS C)TAX INSURANCE D)REPAIRS TOTAL ADMINISTRATIVE EXPENSES 1)BANK CHARGES 2)MANAGERS MEETING CHARGES 3)BOARD MEETING CHARGES 4)GENERAL BODY MEETING EXPENSES 5)T.75 0.39 6.5 0.25 56.5 1 1.2 2 ADV FAV FAV FAV FAV FAV ADV FAV FAV FAV FAV FAV ADV ADV FAV FAV FAV FAV FAV ADV ADV FAV FAV ADV ADV ADV ADV ADV FAV ADV ADV ADV FAV FAV ADV ADV ADV FAV ADV FAV 65 .5 8 215.11 0.14 7.A.2 NIL 53.25 53.75 6 0.99 5.42 10 1.2 1 5 NIL 6 NIL 11 NIL 6 ACTUALS 160 6 2.17 0.25 19 8 6.9 1.1 0.75 50.75 0.5 5 0.84 42.14 7.3 0.25 225 7.25 0.25 0.79 6.13 0.D.2 4 VARIANCE 103.25 50 0.14 50 23 23 23 23 92 7 0.75 0.35 0.08 NIL NIL NIL NIL 2 1.25 0.40 NIL NIL NIL NIL 12 NIL 0.14 3.45 0.45 0.5 10 1.75 6.75 4 15 85.25 56.03 0.48 0.86 6.5 0.3 4 0.13 0.15 1.7 65 1.94 7.5 5.25 56.14 7.75 0.DETAILS OF UTILITIES 2006-07 RS. 7 4.7 2.24 NIL 0.7 5.75 0.7 5.3 5.5 0.5 NIL 3 0.25 60.45 5.7 5.25 58.2 0.P.45 5.25 0.2 0.3 NIL 2.3 1.25 0.25 FAV ADV ADV ADV ADV ADV FAV FAV ADV FAV FAV ADV ADV FAV FAV FAV FAV FAV FAV 66 .24 3 NIL 1.7 5.5 0.D.C.7 5.7 5.25 NIL 37.7 5.7 5.EXPENSES 24)TRAINING CHARGES 25)AUDITORS TRAVELLING EXPENSESE 26)STORES INSURANCE 27)STOCK INSURANCE 28)TRANSPORT COMMITTEE CHARGES 29)GENERAL LICENSE EXPENSES 30)STAFF UNIFORM 31)MAY DAY EXPENSES 32)TYPING CHARGES TOTAL MARKETING EXPENSES A)ADVERTISMENT EXPENSES B)AGMARK CHARGES C)A.7 52 NIL 0.25 0.7 14.2 5.7 5.5 0.D.7 14.F COMMISSION D)FEED TRANSPORT CHARGES E)MILK TRANSPORT CHARGES F)GHEE TRANSPORT CHARGES G)SALES EXECUTIVE SALARIES H)VENDING UNION CHARGES I)AGENT INCENTIVES TOTAL 0.7 5 1 20 8 0.2 0.2 NIL NIL NIL NIL NIL 3 0.3 2.5 0. 4 0.2 1.5 NIL 1.C.13 NIL 1. IN LAKHS BUDGETED ACTUALS VARIANCE 1 MILK COOLING SECTION MALLEPALLY A)3RD PHASE ENTERTAINMENT B) COMPOUND WALL CONSTRUCTION C)COMPRESSOR BED 7.43 NI L NIL NIL 35.31 B)E.15 NIL 1.6 1.6 1.6 1.43 NIL NIL NIL 5.4 10 NIL 2.PLANT C)FLAVOURED MILK PLANT D)COMPOUND WALL CONSTRUCTION E)BOREWELLS F)C.Table.ROAD CONSTRUCTION TOTAL ADV 67 .15 NIL NIL 1.15 NIL 1.5 NIL 1.8 1.35 ADV 2 3 4 5 6 MILK COOLING SECTION KODADA A)REFRIGERRATION B)OFFCERENEVATION MILK COOLING SECTION MOTHKUR A)OFFCE CONSTRUCTION MILK COOLING SECTION RAJAPET A)GUEST HOUSE CONSTRUCTION MILK COOLING SECTION SURYAPET A)COMPRESSOR BED 7 8 9 1 0 1 1 MILK COOLING SECTION ALER A)FARMERS GUEST HOUSE B)BATHROOMS B)COMPOUND WALL MILK COOLING SECTION TANDUR A)COMPOUND WALL CONSTRUCTION MILK COOLING SECTION MAAL A)CONSTRUCTION FOR FEED MILK COOLING SECTION MIRYALA GUDA FAV FAV FAV FAV FAV ADV ADV FAV ADV ADV 1.71 NIL NIL 2.2 4 6.11 DETAILS OF CIVIL CAPITAL EXPENSES 2006-2007 RS.T.4 4 0.02 NIL NIL NIL NIL 0.65 1.12 0.4 5.86 NIL NIL A)REFRIGEATION EXPENSES MILK COOLING SECTION SURYAPET A)GATE CONSTRUCTION NIL NIL NIL FAV NIL NIL NIL MOTHER DAIRY HAYATHNAGAR A)COLD STORAGE CONSTRUCTION 10 NIL NIL NIL NIL NIL 30.67 3.68 0.86 0.53 0. TELEPHONES F)CASH COUNTING MACHINE 0.97 FAV ADV FAV FAV FAV FAV FAV FAV INTERPRETATION 2006-07 INCOMES: Under the income in this year.BHUVANAGIRI EXPANSION 5 MIRYALAGUDA EXPANSION 25 MILK COOLING SECTION PARIGI A)ARE 232 PRIK COMPRESSOR NIL MILK COOLING SECTION NALGONDA PRE PACK MACHINE NIL SOLAR WATER HEATER SYSTEM A)1000LITERS NIL B)500LITERS CHUNDURU NIL TOTAL 80 ACTUALS VARIANCE 13.59 NIL NIL NIL NIL 58.5 4.4 0.5 2 G)TOYOTA.5 7.71 8.15 NIL NIL NIL NIL NIL NIL NIL NIL NIL 11 5 3.19 0.CALCULATORS B)PURCHASING OF COMPUTERS C)FURNITURE ALMARAHS D)ELECTRONIC PUNCHMACHINE E)CELLPHONES .59 0.4 8.22 1.35 13.281 0.2 FAV FAV FAV FAV FAV FAV FAV FAV FAV OFFICE EQUIPMENT A)OFFICE EQUIPMENT.5 0.42 NIL NIL 8.71 7.03 16.3 VARIANCE ADV 0.71 8.2 2 1 0.5 NIL 7.71 NIL 11.85 NIL NIL NIL NIL NIL NIL NIL NIL NIL 11 NIL 1.5 0.96 NIL 1.QUALIS VEHICLES DAIRY ITEMS MILK CANS MILK CRAYTES II 1 2 3 4 5 6 7 8 PURCHASING OF PLANT AND BUDGETED MACHINERY MOTHER DAIRY 30 1)FREE PACK MACHINE 2)FREE PACK SECTION NIL 3)PURCHASING OF STABILIZER NIL 4)( B&G)PURCHASED COMPRESSOR NIL 5)(B&G)CONDENSOR COILS NIL 6)TWO WATER PUMPS NIL 7)11KVT CUBICAL PANEL NIL 8)TRANSFORMER SWITCH NIL 9)MILK PUMPS NIL 10)AMONIA COMPRESSOR MOTAR NIL 11)COLD STORAGE MACHINES NIL MILK COOLING SECTION SURYAPET A)COMPRESSOR MOTAR 5 B)SOLAR WATER HEAT SYSTEMS 5 DIESEL GENERATORS 10 PARIGI.41 NIL NIL NIL NIL 21.63 11.12 DETAILS OF PURCHASING 2006-2007 RS IN LAKHS BUGETED 1 ACTUALS NIIL . estimation made on milk sold is 4875 68 .04 10 3.Table. 45 lakhs because purchase of Toyota vehicle which is not mentioned in budget.13 BUDGET ESTIMATIONS OF MOTHER DAIRY 69 . CIVIL CAPITAL EXPENSES: The civil capital expenses showed the variance of 5. compressor bed and returns .lakhs but actual were 4804 which is less than budgeted.But at the is ended with net profit of 70 which is more than the budgeted (25). compound wall .31 lakhs . concentration is given to construction of refrigeration . central sales & income tax ) . Table. renovation . But under the selling of milk items the results were satisfactory cause the actually showed more than estimates. In the purchase of plant and machinery the actuals made less than budgeted because the expenses are not made in expansion activities & purchasing of machinery. At last it showed favorable DETAILS OF PURCHASE : Office equipment showed the increase of actuals by 2. And also other incomes items are also quite EXPENSES : in this though the actual expenditure is more than is budgeted the cash capital and the net profit increased the increase in the actual expenditure is cause more payments made in the from of the taxes (sales . Also because of conversion charges & expenses made on polythin film . DETAILS OF INCOME 2007-08 RS. IN LAKHS PARTICULARS INCOME MILK SOLD SELLING OF MILK ITEMS GHEE CHEESE CURD SKIMMING MILK BUTTER MILK MILK POWDER CATTLE FEED MILK SUPPLIERS SHARE BUILDING RENT OTHER INCOMES BANK LOAN CLOSING STOCK TOTAL BUDGETED 5058 605 318 40 50 11 NIL 198 20 20 20 300 968 7608 ACTUALS 4804 725 412 40 NIL 4 9 223 20 18 20 380 723 7378 VARIENCE 254 120 94 NIL 50 7 9 25 NIL 2 NIL 80 2454 230 ADV FAV FAV FAV ADV ADV FAV FAV FAV ADV FAV FAV ADV ADV 70 . IN LAKHS 2007-2008 Table.DETAILS OF EXPENSES RS.14 71 . 7 NIL 0.3 NIL 5.45 0.55 411 358.05 0.7 85.5 0.5 0.75 20 VARIANCE 165 0.8 15 222 NIL 15 2.1 60.75 NIL 269 454.6 224.45 15 217 53.25 NIL NIL NIL NIL NIL 0.55 271 41.55 NIL 23 1.55 115 7308 70 0.8 185 537 NIL 225 6 20 106 10.25 15 510 6423.5 5 4 0.5 100 100 100 15 779 6878 730 140 400 115 7533 75 0.5 20 60 72.5 25 110 10 3 1 15 240 55 86 20 ACTUALS 3350 315.25 NIL FAV ADV FAV ADV ADV FAV FAV FAV ADV FAV FAV FAV FAV FAV FAV FAV 0.4 954.45 NIL 225 5 ADV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV ADV ADV FAV FAV FAV FAV 72 .7 3 0.1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 MILK PURCHASES MILK PURCHASED FROM OTHER UNIONS TRANSPORT CHARGES FOR MILK MILK PRODUCTS PURCHASED A)MILK POWDER B)CHEESE CATTLE FEED MATERIAL PURCHASING BAGS FOR CATTLE FEED PURCHASING OF STORES MATERIAL PURCHASING OF POLYTHIN FILM A)MILK B)GHEE C)GHEE D)BUTTER MILK PACKING MATERIAL ELECTRICITY.3 0.DIESEL CHARGES REPAIRS IN PLANT AND MACHINERY REPAIRS OF VEHICLES MAINTENANCE AND REPAIRS OF BUILDING OFFICE REPAIRS AND MAINTENANCE A)FURNITURES AND TYPEWRITERS B)COMPUTERS MAINTENANCE OF LABORATORY ADMINISTRATION CHARGES EMPLOYEES SALARIES PENSION PROVIDENT FUND PRINTING AND STATIONARY MARKETING EXPENSES SALES TAX CENTRAL TAX INCOME TAX AUDITOR FEES A)FREE AUDIT FEES B)ANNUAL AUDIT FEES C)TRANSPORT ERXPENSES CONVERSION EXPENSES A)PIECE WORK LABOUR CHARGES B)TRANSPORT CHARGES VRS DIVIDEND OPENING STOCK TOTAL CASH PROFIT(6180-6130) INTEREST ON LONG TERM LOAN A)NDDB B)APCOB DEPRECIATION ON BULDING TOTAL NET PROFIT BUDGETED 3515 315 200 315 NIL 210 8.45 20 NIL 32.1 66.7 380 8 37.8 0.15 400 8 70 50 10 50 2 1 0.75 50 10 50 2 1 NIL 80 40 27. 75 0.3 0.75 6 0.15 1.25 A)ELECTRICITY CHARGES B)GENERATOR DIESEL C)WATER CHARGES D)PERNUS OIL TOTAL PLANT AND MACHINERY REPAIRS A)OIL AND LUBRICANTS B)REPAIRS C)FACTORY LICENSE FEES D)BOILER LICENSE FEES E)AMONIA GAS F)SALT G)PURCHASE OF SPARE PARTS TOTAL REPAIRS OF VEHICLES A)DIESEL B)OIL AND LUBRICANTS C)TAX AND INSURANCE REPAIRS TOTAL ADMINISTRATIVE EXPENSES VAR ACTUALS IANCE 160 15 6 4 2.25 0.04 NIL NIL NIL 0.2 0.D.75 0.3 NIL 0.3 4 0.75 4 15 85.17 0.5 0.25 50 0.1 0.15 UTILITIES BUDG ETED 175 10 5 50 240 2 25 0.15 0.5 10 1.15 0.5 5 1 6.05 NIL NIL NIL NIL 0.1 0.3 4 0.25 0.75 2.11 0.5 0.25 4 0.13 0.03 NIL 0.2 4 NIL 0.75 217 23 1.2 NIL 53.48 0.17 0.75 25 0.25 NIL NIL NIL NIL 0.05 NIL 0.5 0.12 NIL 0.2 0.25 48.A 6)HOUSE RENT FOR CHAIRMAN 7)CASH INSURANCE 8)INSURANCE 9)RENT 10)ELECTIONS EXPENSES 11)CAR RENT 12)MEETING EXPENSES 13)LEGAL FEES 14)FESTIVAL EXPENSES 15)NEWS PAPER CHARGES 16)POSTAGE 17)TELEPHONE CHARGES 18)DISTRIBUTORS MEETING CHARGES 19)MUNCIPAL TAXES 20)PURCHSE COMMITTEE CHARGES 21)PRIVATE SECURITY SALARY 22)TENDER NOTIFICATION 23)EMPLOYEES TRAVELLING EXPENSES 24)TRAINING CHARGES 25)AUDITORS TRAVELLING EXPENSES 26)STORES INSURANCE 27)STOCK INSURANCE 28)TRANSPORT COMMITTEE CHARGES 29)GENERL LICENSE EXPENSES 73 .9 1.1 0.5 0.25 NIL NIL 0.35 0.42 10 1.45 0.45 10 1.25 2 0.25 0.25 NIL NIL 0.25 NIL NIL 0.7 65 1.5 0.05 25 1.25 0.25 0.75 0. IN LAKHS Table.25 1.25 0.A.25 0.5 5 0.24 FAV FAV FAV FAV FAV FAV ADV ADV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV ADV ADV FAV FAV FAV FAV FAV FAV FAV FAV ADV FAV FAV FAV FAV ADV FAV FAV ADV FAV FAV FAV FAV FAV FAV FAV 0.3 1 1.5 0.DETAILS OF UTILITIES 2007-08 RS.25 25 55 65 2 4 15 86 6 0.5 0.2 0.48 0.75 6.35 0.45 0.25 0.01 1)BANK CHARGES 2)MANAGERS MEETING CHARGES 3)BOARD MEETING CHARGES 4)GENERAL BODY MEETING EXPENSES 5)T.5 10 1. TOTAL MARKETING EXPENSES A)ADVERTISEMENT EXPENSES B)AGMARK CHARGES C)A.15 15 1 25 10 1 0.5 NIL 0.5 3 0.P.5 0.5 14 60.45 10 NIL 5 2 0.D.16 74 .25 NIL 1.5 NIL 3 0.C.25 FAV Table.7 5 1 20 8 0.D.F COMMISSION D)FEED TRANSPORT CHARGES E)MILK TRANSPORT CHARGES F)GHEE TRANSPORT CHARGES G)SALES EXCUTIVE SALARIES H)VENDING UNION CHARGES I)AGENT INCENTIVES 62.25 14 FAV FAV FAV FAV FAV FAV FAV FAV ADV FAV TOTAL 70 37.75 32. 5 1 NIL 25 NIL 5 3 5 45 6.5 1 NIL NIL NIL NIL NIL NIL NIL 1 1. PLANT C)FLAVOURED MILK PLANT D)COMPOUND WALL CONSTRUCTION E)BOREWELLS F)C.43 NIL NIL NIL 35. IN LAKHS BUDGETED MILK COOLING SECTION MALLEPALLY A)3RD PHASE ENTERTAINMENT B)COMPOUND WALL CONSTRUCTION C)COMPRESSOR BED MILK COOLING SECTION KODADA A)REFRIGERATION B)OFFICE RENEVATION MILK COOLING SECTION MOTHKUR A)OFFICE CONSTRUCTION MILK COOLING SECTION RJAPET A)GUEST HOUSE CONSTRUCTION MILK COOLING SECTION SURYAPET A)COMPRESSOR BED MILK COOLING SECTION ALERU A)FARMERS GUEST HOUSE B)BATH ROOMS C)COMPOUND WALL MILK COOLING SECTION TANDUR A)COMPOUND WALL CONSTRUCTION MILK COOLING SECTION MAAL A)CONSTRUCTION FOR FEED MILK COOLING SECTION MIRYALAGUDA A)REFRIGERATION EXPENSES MILK COOLING SECTION SURYAPET A)GATE CONSTRUCTION MOTHER DAIRY HAYATHNAGAR A)COLD STORAGE CONSTRUCTION B)E.DETAILS OF CIVIL CAPITAL EXPENSES 2007-08 RS.2 1.15 NIL NIL NIL 10 NIL 2.4 5.4 5.15 1 1.67 3.2 1.6 1.86 0.86 0.12 0.65 1.12 0.13 NIL 1.C.17 DETAILS OF PURCHASING 2007-2008 RS IN LAKHS BUGETED ACTUALS VARIANCE 75 .13 1 NIL 1 1.43 5 3 5 9.67 3.T.5 NIL 1.71 Table.ROAD CONSTRUCTION TOTAL ACTUALS VARIAN CE 6.65 1.6 1.29 ADV ADV FAV FAV FAV ADV ADV ADV ADV ADV ADV ADV FAV FAV FAV ADV FAV ADV FAV FAV FAV FAV NIL NIL 1 1.5 1 10 25 2. 03 1.81 8.42 NIL NIL 0.03 FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV ADV ADV ADV ADV ADV FAV FAV FAV FAV ADV 2 3 4 5 6 7 8 INTERPRETATION OF 2007-08 76 .96 NIL 1.81 0.59 NIL NIL NIL NIL 58.65 NIL 5.5 4 5 0.65 FAV ADV ADV ADV ADV ADV FAV ADV II 1 15 2 0.TELEPHONES F)CASH COUNTING MACHINE G)TOYOTA.59 6 3 6 5 6.15 2 0.5 2 1 1 1 11 NIL 1.5 4 5 0.5 2 1 1 1 NIL NIL NIL NIL NIL NIL 6 3 6 5 52 13.19 0.QUALIS VEHICLES DAIRY ITEMS MILK CANS MILK CRAYTES PURCHASING OF PLANT AND MACHINERY MOTHER DAIRY 1)FREE PACK MACHINE 2)FREE PACK SECTION 3)PURCHASING OF STABILIZER 4)( B&G)PURCHASED COMPRESSOR 5)(B&G)CONDENSOR COILS 6)TWO WATER PUMPS 7)11KVT CUBICAL PANEL 8)TRANSFORMER SWITCH 9)MILK PUMPS 10)AMONIA COMPRESSOR MOTAR 11)COLD STORAGE MACHINES MILK COOLING SECTION SURYAPET A)COMPRESSOR MOTAR B)SOLAR WATER HEAT SYSTEMS DIESEL GENERATORS PARIGI.35 5.35 13.BHUVANAGIRI EXPANSION MIRYALAGUDA EXPANSION MILK COOLING SECTION PARIGI A)ARE 232 PRIK COMPRESSOR MILK COOLING SECTION NALGONDA PRE PACK MACHINE SOLAR WATER HEATER SYSTEM A)1000LITERS B)500LITERS CHUNDURU TOTAL NIL 6 NIL NIL NIL NIL NIL 12 NIL NIL 0.71 5.71 6.CALCULATORS B)PURCHASING OF COMPUTERS C)FURNITURE ALMARAHS D)ELECTRONIC PUNCH MACHINE E)CELLPHONES .96 NIL 1.81 8.85 NIL NIL NIL NIL NIL NIL NIL NIL NIL 11 NIL 1.42 NIL NIL 0.65 5.1 2 OFFICE EQUIPMENT A)OFFICE EQUIPMENT.35 13. In this year less expenses made in office Purchases and some expenses made in mother dairy and milk cooling Section. EXPENSES:. thus net profit at the end gained more. The expenses made on different items is less.INCOME:. BUDGET ESTIMATIONS OF MOTHER DAIRY 2008-09 77 .In this year the income gained is less because of less milk sold and income which generated from selling of milk items also less items like cheese. CIVIL CAPITAL EXPENSES:. ghee.The expenses showed less in actual when compare to Budgeted. DETAILS 0F PURCHASES:.In this year more importance given civil Capital works and investment made cold storage construction & compression bed. buttermilk etc the end results were unsatisfactory. 83 FAV ADV ADV FAV FAV FAV FAV FAV FAV ADV ADV FAV 3 4 5 6 7 DETAILS OF EXPENSES 2008-09 RS.Table.45 0.2 237 12 18 25 500 8213. IN LAKHS S.82 5. 1 2 PARTICULARS INCOME MILK SOLD SELLING OF MILK ITEMS A)GHEE B)CHEESE C)CURD D)SKIMMING MILK E)BUTTER MILK CATTLE FEED MILK SUPPLIERS SHARE BUILDING RENT OTHER INCOMES BANK LOANS TOTAL BUDGETED 5800 580 380 58 3 10 275 14 20 20 400 7560 ACTUALS 6240 421 706 50. IN LAKHS Table-19 BUDGETED ACTUALS VARIANCE 1 MILK PURCHASES 4100 3750 350 FAV 78 .8 38 2 2 5 100 653.18 DETAILS OF INCOME 2008-09 RS.18 4.83 VARIENCE 440 159 326 7.NO.55 2. 52 1.75 1.11 NIL 3.34 50 111.DIESEL CHARGES REPAIRS IN PLANT AND MACHINERY REPAIRS OF VEHICLES MAINTENANCE AND REPAIRS OF BUILDING 230 200 350 NIL 225 9 35 210 15 255 65 98 30 1 1 0.66 21.53 32.78 0.66 50 2 110 15 744 90.28 106 15 11.2 1.5 16 33. IN LAKHS BUDGETED ACTUALS 10 UTILITIES VARIANCE 79 .1 34 23.1 60 532 9 14.2 0.11 0.8 5.2 9.6 50 10 50 1.08 06 35 88.MACHINERYPURCHASE TOTAL NET PROFIT Table.2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 MILK PURCHASED FROM OTHER UNIONS TRANSPORT CHARGES FOR MILK MILK PRODUCTS PURCHASED A)MILK POWDER B)CHEESE CATTLE FEED MATERIAL PURCHASING BAGS FOR CATTLE FEED PURCHASING OF STORES MATERIAL PURCHASING OF POLYTHIN FILM PACKING MATERIAL ELECTRICITY.22 1.45 0.1 520 135 8181.20 DETAILS OF UTILITIES 2008-2009 RS.5 82 1 30.7 ADV ADV ADV ADV ADV ADV ADV ADV ADV FAV FAV FAV ADV ADV FAV FAV ADV ADV FAV FAV ADV FAV FAV FAV ADV ADV FAV ADV FAV ADV FAV ADV FAV ADV FAV 24 25 26 27 28 29 A)FURNITURES AND TYPEWRITERS B)COMPUTERS MAINTENANCE OF LABORATORY ADMINISTRATION CHARGES EMPLOYEES SALARIES PENSION PROVIDENT FUND PRINTING AND STATIONARY MARKETING EXPENSES SALES TAX CENTRAL TAX INCOME TAX AUDITOR FEES A)FREE AUDIT FEES B)ANNUAL AUDIT FEES C)TRANSPORT ERXPENSES CONVERSION EXPENSES A)PIECE WORK LABOUR CHARGES B)TRANSPORT CHARGES VRS DIVIDEND ANIMAL PURCHASE LONG TERM LOAN A)SDDB B)CANARA BANK BUILDINGS.3 0.2 100 50 100 15 NIL 113.5 450 8 44.66 26.23 0.1 410 150 7437 123 1090 216 500 230 12 50 232 21 262 60 80 28 2.75 0.3 860 16 150 5 3 15 22 6 7 5 18 2 1.1 63. 03 0.2 8 0.94 0.8 3 4 13 0.4 4 FAV ADV ADV ADV FAV ADV FAV ADV FAV FAV FAV FAV FAV FAV FAV FAV FAV FAV ADV FAV FAV FAV FAV ADV ADV FAV FAV ADV FAV FAV FAV FAV FAV ADV FAV ADV ADV .11 12 A)ELECTRICITY CHARGES B)GENERATOR DIESEL C)WATER CHARGES D)PERNUS OIL TOTAL PLANT AND MACHINERY REPAIRS A)OIL AND LUBRICANTS B)REPAIRS C)FACTORY LICENSE FEES D)BOILER LICENSE FEES E)AMONIA GAS F)SALT G)PURCHASE OF SPARE PARTS TOTAL REPAIRS OF VEHICLES A)DIESEL B)OIL AND LUBRICANTS C)TAX AND INSURANCE D)REPAIRS E)RMT SPARES TOTAL ADMINISTRATIVE EXPENSES 1)BANK CHARGES 2)MANAGERS MEETING CHARGES 3)BOARD MEETING CHARGES 4)GENERAL BODY MEETING EXPENSES 5)T.3 0.2 0.5 0.23 1.9 0.25 3.7 0.25 1 1.2 0.18 0.43 0.A 6)HOUSE RENT FOR CHAIRMAN 7)CASH INSURANCE 8)INSURANCE 9)RENT 10)ELECTIONS EXPENSES 11)CAR RENT 12)MEETINGS EXPENSES 13)LEGAL FEES 14)FESTIVAL EXPENSES 15)NEWS PAPER CHARGES 16)POSTAGE 17)TELEPHONE CHARGES 18)DISTRIBUTORS MEETING CHARGES 19)MUNCIPAL TAXES 20)PURCHSE COMMITTEE CHARGES 21)PRIVATE SECURITY SALARY 80 175 10 5 65 255 2 30 0.A.02 0.1 1 0.5 0.42 NIL 0.25 10 0.32 1.57 0.9 1.1 0.16 NIL 6.5 NIL 1.16 0.65 60 60 1.32 7.11 0.3 0.1 0.D.32 4.08 1.28 0.8 3.3 1 0.06 0.07 0.9 15 3.2 0.5 0.06 0.96 1.5 NIL 2 0.2 0.82 22.79 2 NIL NIL 0.68 0.06 0.21 48 0.5 30 65 65 2 4 15 7 93 8 0.2 6 12 21 42.66 1.3 0.04 0.5 11 143 16 17 86 262 1.72 0.48 0.4 6 0.35 0.35 5 5 0.01 0.5 7 0.17 0.2 12 3 80 7. 65 1.35 1.04 0.1 3 6 44.5 63.D.3 NIL 4.06 25 1.D.2 3 1.5 1.2 0.59 30.36 1 1.02 0.32 4.75 1 1.25 0.1 ADV ADV ADV ADV FAV FAV FAV NIL FAV FAV FAV FAV FAV FAV FAV ADV FAV ADV FAV ADV FAV FAV FAV 81 .5 0.3 0.39 NIL NIL 60 3.27 NIL NIL NIL 2.25 1.18 0.06 NIL 5 NIL 0.5 0.29 0.73 1.75 0.2 0.1 2.5 1 0.C.29 0.5 NIL 0.1 NIL 0.27 0.3 0.41 14.F COMMISSION D)FEED TRANSPORT CHARGES E)MILK TRANSPORT CHARGES F)GHEE TRANSPORT CHARGES G)UNITS EXPENSES H)AGENTS INCENTIVES TOTAL 1.6 1.22)TENDER NOTIFICATION 23)EMPLOYEES TRAVELLING EXPENSES 24)TRAINING CHARGES 25)AUDITORS TRAVELLING EXPENSES 26)STORES INSURANCE 27)TRANSPORT COMMITTEE CHARGES 28)GENERAL LICENSE EXPENSES 29)STAFF UNIFORM 30)MAY DAY EXPENSES 31)TYPING CHARGES 32)GIFT PURCHASE 33)CM RELIF FUND 34)STOCK INSURANCE TOTAL MARKETING EXPENSES A)ADVERTISEMENT EXPENSES B)AGMARK CHARGES C)A.79 0.5 1 0.25 0.5 5 1 25 3.P.5 4.25 0.5 3.5 0. 21 82 .Table. 75 NIL NIL 1.04 NIL NIL NIL NIL 65 36.96 3.32 9.32 9.75 NIL NIL 1.22 83 .12 NIL ADV NIL NIL NIL ADV ADV ADV ADV FAV Table. IN LAKHS BUDGETED ACTUALS VARIANCE 1 2 3 4 5 6 7 8 9 MILK COOLING SECTION MALLEPALLY A)COMPRESSOR BED MILK COOLING SECTION KODADA A)OFFICE CUM GUEST HOUSE B)WATER SUPPLY MILK COOLING SECTION MOTHKUR A)OFFICE EXPANSION MILK COOLING SECTION BUVANAGIRI A)CONDENSOR CONSTRUCTION CATTLE FEED BUILDING A)TANKS CONSTRUCTION B)FOUNDATION EXPENSES C)STEPS CONSTRUCTION MILK COOLING SECTION PARIGI A)SECOND ENTERTAINMENT BUILDING MILK COOLING SECTION MAL A)STORES ROOM CONSTRUCTION MOTHER DAIRY HAYATHNAGAR IT PLANTS COMPOND WALL CONSTRUCTION TOILETS CONSTRUCTION STORES CUM LAB CONSTRUCTION CIVIL CAPITAL WORKS A)MOTHER DAIRY B)MILK COOLING SECTION TOTAL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL 65 65 NIL 4.04 NIL NIL NIL NIL NIL 28 NIL 4.85 NIL NIL NIL 9.96 3.DETAILS OF CIVIL CAPITAL EXPENSES 2008-2009 RS.85 NIL NIL NIL 9. 34 0.27 5.91 1.18 ADV INTERPRETATION OF 2008-2009 84 .53 13.97 11.36 19.5 0.24 0.5 0.4 VARIANCE 7 0.63 5.08 0.17 ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV ADV 65 65 70.36 19.2 0.27 5.09 0.7 0.2 1.DETAILS OF PURCHASES 2008-2009 RS.2 0.18 0.5 12.18 0.09 0.7 2. IN LAKHS 1 2 A)PURCHASE OF COMPUTERS B)CELL PHONES AND TELEPHONES DAIRY ITEMS MILK CANS MILK TRACKS TOTAL PURCHASING OF PLANT AND MACHINERY MOTHER DAIRY S.53 13.91 1.2 1.7 9.6 FAV ADV ADV FAV FAV 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL NIL 0.97 11.24 0.S GATE WASHER PURCHASE MECHANICAL EQUIPMENT BALANCE TANKS CONTROL WALL 60KL LEVEL TRANSFORAM 60KL MILK SILO HBM LOAD CELL CONTROL PANEL BOILAR PURCHASED PHE CONDENSOR PURCHASE MILK PASTURAIZATION PUMP PURCHASE 5HP PUMP PURCHASED 1 HP MOTOR PURCHASED 5 HP SUB PUMPPURCHASE NEW MACHINES PURCHASE A)MOTHER DAIRY B)MILK COOLING SECTION TOTAL BUDGETED 8 NIL NIL 12 20 ACTUALS 1 0.34 0.17 0.7 0.09 16.08 0.5 7.09 16. If the organization on best selling products it can attain more gains. milk powder purchase etc . So finally the income generated is more at the end .It got more income on selling the cheese where it gained income 326 lakhs over the budgeted and the milk sold in this is 6240 which more than the budgeted (5800). DETAILS OF PURCHASE: In this more investment done in the plant& machinery purchase were less in office purchases .83 over the budgeted . If organization consider the above and try reduce the expenses it can gain profits.The income in this year shown the increase of653. So this caused in decrease in net profit at the . EXPENSES: In this year all the actuals are more than the budgeted . The main effect can be seen purchase of milk from other unions and more transportation charges . CIVIL CAPITAL EXPENSES: The expenses made of civil works showed less in actuals because no investment made on milk cooling section which is reflected in budget.INCOMES:. BUDGET ESTIMATIONS OF MOTHER DAIRY 85 . 07 2.Table.24 86 .9 36.07 20. IN LAKHS PARTICULARS BUDGETED ACTUALS VARIENCE 1 2 3 4 5 6 7 8 INCOME MILK SOLD SELLING OF MILK ITEMS GHEE CHEESE CURD SKIMMING MILK BUTTER MILK MILK POWDER CTTLE FEED MILK SUTTLIERS SHARE BUILDING RENT OTHER INCOMES BANK LOAN CLOSING STOCK 6870 450 780 65 NIL 5 NIL 242 13 18 26 650 NIL 6627 291.23 290 25.16 0.8 0.49 ADV DETAILS OF EXPENSES RS.5 13.07 2.84 0.5 0.1 10.1 709.01 14.51 799.74 59.9 70.2 0.23 DETAILS OF INCOMES (2009-10) RS.23 360 25.25 ADV ADV ADV ADV FAD ADV FAV ADV ADV FAV ADV FAV ADV TOTAL 9161 8361.25 243 158.26 5.07 221.IN LAKHS (2009-10) Table.01 3. 24 15.4 NIL 1.24 71.28 14.48 12.79 56.02 4.8 14.1 72 587 10 1.82 1.87 99.52 581.3 230 17 952.4 0.4 0.1 NIL NIL 104.4 18 40 1.07 1.5 1.7 400 123 8160.49 7.93 NIL NIL NIL 138.9 DETAILS OF EXPENDED RS.7 1.3 21.82 15.03 2.97 0.1 21.91 48.67 NIL NIL 11.6 10 0.9 1.2 95.92 17.6 28.IN LAKHS Table.06 NIL 84.5 0.DIESEL CHARGES REPAIRS IN PLANT AND MACHINERY REPAIRS OF VEHICLES MAINTENANCE AND REPAIRS OF BULDING OFFICE REPAIRS AND MAINTENANCE A)FURNITURES AND TYPEWRITERS B)COMPUTERS MAITENANCE OF LABORATORY ADMINISTRATION CHARGES EMPLOTEES SALARIES PENSION PROVIDENT FUND PRINTING EXPENSES SALES TAX CENTRAL TAX INCOME TAX AUDITOR FEES A)FREE AUDIT REES B)ANNUAL AUDIT FEES C)TRANSPORT EXPENSES CONVERSION EXPENSES A)PIECE WORK LAVOUR CHARGES B)TRANSPORT CHARGES VRS DIVIDEND INTEREST ON LONG TERM LOAN A)NDDB B)APCOB DEPRECIATION ON BUILDING ACTUA VARIAN LS CE 4125 3910.3 117 17 20 15 460.25 UTILITI 87 (2009-10) BUDGETED ACTUALS VARIANCE .78 214.28 16.1 1.85 FAV FAV FAV FAV A FAV FAV FAV 2 3 4 5 6 7 8 9 10 11 FAV ADV FAV ADV ADV FAV FAV FAV ADV FAV FAV ADV FAV FAV FAV FAV FAV ADV FAV ADV ADV FAV FAV FAV FAV 12 13 14 15 16 17 100 630 140 9059.52 5.55 189.7 1.24 0.33 NIL NIL 11.94 NIL 165.4 3.13 19.4 11.22 1175 1046 429 240 214 26 650 NIL 250 15 55 260 NIL NIL 23 285 66 80 31 2 1.51 252.5 32.88 19.88 35.BUDGETED 1 MILK PURCHASES MILK PURCHASED FROM OTHER UNIOBS TRANSPORT CHARGES FOR MILK MILK PRODECTS PURCHASES A)MILK POWDER B)CHEESE CATTLE FEED MATERIAL PURCHASING BAGS FOR CATTLE FEED PURCHISING OF STORES MATERIAL PURCHASING OF POLYTHIN FULM A)MILK B)GHEE D)BUTTER MILK PACKING MATERIAL ELECTRICITY.52 297. ES A)ELECTRICITY CHARGES B)GENERATOR DIESEL C)WATER CHARGES D)PERNUS OIL TOTAL 2 PLANT AND MACHINERY REPAIRS A) OIL AND LUBRICANTS B)REPAIRS C)FACTORY LICENSE EES D)BOILER LICENSE FEES E)AMONIA GAS F)SALT G)PURCHASE OF SPARE PARTS TOTAL 3 REPAIRS OF VEHICLES A)DIESEL B)LIL AND LUBRICANTS C)TAX AND INSURANCE D)REPAIRS TOTAL 4 ADMISNISTRATIVE EXPENESES 1)BANK CHARGES 2)MANAGERS MEETING CHARGES 3)BOARD MEETING CHARGES 4)GENERAL BODY MEETING EXPENSES 5)T.5 0.16 0. D.38 0.09 0.06 -0.59 96.44 18.A 6)HOUSE RENT FOR CHAIRMAN 7)CASH INSURANCE 8)INSURANCE 9)RENT 10)ELECTIONS EXPENSES 11)CAR RENT 12)MEETING EXPENSES 13)LEGAL FEES 14)FESTIVAL EXPENSES 15)NEWS PAPER CHARGES 16)POSTAGE 17TELEPHONE CHARGES 18)DISTRIBUTORS MEETING CHARGESS 155 18 20 92 285 1.45 0.34 0.04 0.21 7 0.5 1 1.96 297.35 0.5 7 157.4 0.78 7.39 19.A.41 4.2 0.42 4.06 1 -0.74 80.81 0.96 47.62 1.76 0.24 2.4 0.37 2.25 0.24 0.5 13 80 7.4 66 63 1.1 1 0.07 0.3 49 0.96 23.28 8.52 4.8 0.03 0.5 1.65 39.76 ADV ADV FAV ADV ADV ADV FAV FAV ADV ADV ADV FAV FAV ADV ADV ADV ADV ADV ADV FAV FAV ADV ADV FAV FAV ADV FAV ADV FAV FAV ADV ADV ADV FAV ADV FAV 88 .34 7.76 -0.07 0.06 -0.17 0.66 0.6 0.67 0.92 0.02 0.01 1.5 2.3 12.13 -0.25 2 1.26 17.36 11 5.1 3.53 0.9 0.35 9.7 0.4 13.39 99.35 5 0.36 29 14.04 0.44 NIL 2.27 6.2 0.91 1.22 0.287 0.82 -0.69 0.6 -0.1 0.73 0.5 NIL 1.57 0.23 0.37 0. 65 ADV FAV FAV TOTAL 1.58 15.6 -4.69 NIL 0.25 1.96 16.22 5.P.D.25 NIL 1.4 1.42 14.96 ADV ADV FAV ADV ADV ADV 1.48 2.4 ADV 89 .F COMMISSION D)FEED TRANSPORT CHARGES E)MILK TRANSPORT CHARGES F)GHEE TRANSPORT CHARGES G)SALES EXECUTIVE SALARIES H)VENDING UNION CHARGES I)AGENT INCENTIVES 0.02 FAV FAV ADV ADV FAV ADV NIL NIL 2.4 NIL NIL NIL NIL NIL NIL 0.82 16.5 0.4 0.58 16.3 0.4 0.58 15.9 17 0.4 NIL 65 0.15 NIL NIL NIL NIL NIL NIL 1.8 0.4 5.69 NIL 2.28 0.19)MUNICIPAL TAXES 20)PURCHASE COMMITTEE CHARGES 21)PRIVATE SECURITY SALARY 22)TENDER NOTIFICATION 23)EMPLOYEES TRAVELLING EXPENSES 24)TRAINING CHARGES 25)AUDITORS TRAVELLING EXPENSES 26)STORES INSURANCE 27)STOCK INSURANCE 28)TRANSPORT COMMITTEE CHARGES 29)GENERAL LILCENSE IXPENSES 30)STAFF UNIFORM 31)MAY DAY EXPENSES 32)TYPING CHARGES TOTAL 5 MARKETING EXPENESES A)ADVERTISENEBT EXPENSES B)AGMARK CHARGES C)A.4 NIL NIL NIL NIL 1.D.42 NIL 0.72 -0.5 0.5 5 0.65 NIL 0.9 NIL 1 NIL 0.C.42 0.85 NIL 0. 13 NIL NIL NIL NIL NIL NIL 23.64 13.26 DETAILS OF CIVIL CAPITAL EXPENSES 2009-2010 RS.24 10 3 1.5 2 6 1 5.2 NIL NIL NIL 8.14 0.96 10 3 1.2 NIL NIL NIL NIL NIL 79.22 39.C ROAD CONSTRUCTION TOTAL BUDGETED ACTUALS VARIANCE 1 NIL NIL 1.47 NIL NIL NIL NIL NIL NIL 7.07 1 NIL NIL 7.3 2 6 0.PLANT C)FLAVOURED MILK PLANT D)COMPOUND WALL CONSTRACTION E)BOREWALLS F)C.84 FAV 2 3 4 5 6 ADV FAV FAV FAV ADV FAV 7 8 9 10 11 ADV FAV FAV FAV ADV 90 .76 46.5 NIL NIL 16.8 NIL NIL 0.6 NIL NIL NIL NIL NIL NIL 15. IN LAKHS 1 MILK COOLING SECTION MALLEPALLY A)3 RD PHASE ENTERT AINMENT B)COMPOUND WALL CONSTRCTION C)COMPRESSOR BED MILK COLLING SECTION KODADA A)REFRIGERATION B)OFFICE RECEVATION MILK COLLING SECTION MOTHKUR A)OFFICE CONSTRUCTION MILK COOLING SECTION RAJAPAT A)GUEST HOUSE CONSTRUCTION MILK COOLING SECTION SURYAPAT A)COMPRESSOR BED MILK COLLING SECTION ALERU A)FARMERS GUEST HOUSE B)BATHROOMS C)COMPOUN WALL MILK COOLING SECTION TANDUR A)COMPOUNWALL CONSTRUCTION MILK COOLING SECTION MAAL A0CONSTRUCTION FOR FEED MILK COOLING SECTION MIRYALAGUDA A)REFRIGERATION EXPENSES MILK COLLING SECTION SURYAPET GATE CONS TRUCTION MOTHER DAIRY HAYATHNAGAR A)COLD STORAFGE CONSTRUCTION B)E.52 13.Table.T.5 NIL NIL 62. 27 DETAILS OF PURCHASING 2009-2010 RS.CALCULATORS B)PURCHASING OF COMPUTERS C)FURNITURE ALMARAHS D)ELECTRONIC PUNCH MACHINE E)CELLPHONES.23 ADV 20.24 30.2 NIL NIL NIL NIL NIL 2 ADV 4 FAV 7.TELEPHONES F)CASH COUNTING MACHINE G)TOYOTA.59 FAV 10. IN LASHS OFFICE EQUIPMENT A)OFFICE EQUIPEMENT.6 28.QALIS VEHICLES DAIRY ITEMS MILK CANS MILK CRAYTES TOTAL PURCHASE OF PLANT AND MACHINERY PURCHASE OF NEW MACHINERY 1)MOTHER DAIRY 2)MILK COOLING SECTION TOTAL BUDGETED ACTUALS VERIANCE 5 NIL 5 0.2 NIL NIL NIL NIL NIL NIL 4 8 12 0.2 NIL NIL NIL NIL NIL 2 12 19.Table.23 38.36 FAV 91 .2 FAV FAV FAV 58.6 NIL 58.01 10. In this year more importance is given to civil expansion organization gave more importance and in crested in compression bed cold storage construction. Because mainly less milk purchased from the other unions. The final result is less. 92 . EXPENSES:.In the expenses the profit generated at the end is more when compare to budgeted.INTERPRETATION OF 2009-2010 INCOME: In this year the income is less when compare to the budgeted because the income generated in all items under the heading is less Nothing haired every year income from selling of milk items especially cheese will gain more but in this year it is opposite Totally at the end it is not satisfactory.The details of purchase showed less because less expenses made on office material purchase. DETAILS OF PURCHASE:. and also in mother dairy. And the other expenses incurred also less. CIVIAL CAPITAL EXPENSES:. It is good to improve the works. In the year 2009-10 budgeted amount is more compared to actually it shows that the quantity is more compared to market.1 Interpretation: In the year 2005-06 the actual amount is less compared to budgeted amount as the budget is accurate. 93 . share of milk suppliers and cattle feed products are less than the estimates. Selling of milk products. In the 2007-08 it shows a slight change between budgeted amount and actually.GRAPH OF INCOMES YEARS BUDGETED 8778 4810 7608 7608 9161 ACTUALS 8361 7378 7378 8213 8361 2005-06 2006-07 2007-07 2008-09 2009-10 Figure. GRAPH OF EXPENSES YEARS 2005-06 2006-07 2007-07 2008-09 2009-10 Figure.2 BUDGETED 8778 4810 7608 7608 9161 ACTUALS 8361 7378 7378 8213 8361 Interpretation: In the year 2005-06 actual are less compared to budgeted it shows that they gained in this year. In the year 2009-10 budget amount is more because as the milk powder, packing material, central tax are gaining expenses compared to budget amount. In the last year budgeted amount is more compared to actual the above products did not sold well. It shows that their budget is aggregate. GRAPH OF CIVIL EXPENSES 94 YEARS 2005-06 2006-07 2007-07 2008-09 2009-10 Figure.3 BUDGETD ACTUALS 70 30.4 45 65 62 79 35 35 25 79 Interpretation: In the year 2005-06 civil expenses are at a very high range. Actuals are high compared to budgeted because of construction of cold storage sector. Flavored milk plant and bore weeks. In the year 2007-08 actuals are less compared to budgeted because as the expenses are less. In the year 2009-10 it incurred high volume of expenses than the budgeted because it incurred heavy expenses. SUGGESTIONS 95 As the internal resources are not sufficient to take up major modifications revamping of the equipment covering to the requirement of strategic sector, Government must take steps to provide. It should put in more efforts to capture a sizable market share. By taking strategic decision at appropriate time it could be able to transfer some of its future expansion and modernization schemes, temporary to another sister organizations in cooperatives, there by avoiding payment for unused charges duly safe guarding its requirements to avail the same at times I becomes necessary. For the past five years it is evident that the incomes including the scrap generated internally is the excess of estimates. The organization must take steps to utilize the scrap to bring down costs. Some welfare steps to be provided to the employees of the mother dairy so that they can work efficiently and effectively for increase of sales in this regard. Government should take steps to provide some relief in this regard.  More emphasis should be given to advance technology. Financial feasibility should be improve a little. 96 milkmagic.L Narang WEBSITES www.com www.org www.nddb.motherdairy. Cost Accounting S.K SHRMA SHASHIK.fao.GUPTA.BIBLOGRAPHY Financial Management Management accounting S.org 97 .com www.N MAHESHWARI R.P Jain & K.