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KMF
PROJECT REPORT
AT
MASTER OF BUSINESS
ADMINISTRATION
(Industry Integrated)
TO
MADURAI KAMRAJ UINIVERSITY, MADURAI
BY
SAMARTHA.D.K
Reg. No. A8755209
FACULTY GUIDE
Dr. Rajendra Prasad
INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH
HUBLI
JUNE 2009
EXTERNAL GUIDE
Mr. K. B. Patil
(HOD of Finance Department)
PART A
INDUSTRIAL PROFILE
COMPANY PROFILE
The Growth
NDDB began its operations with the mission of making dairying a
vehicle to a better future for millions of gross roots milk producers. The
mission archived helped to launce „‟Operation Flood‟‟, a programme
extending over 26 years and with the help of World Bank Loan India
become the world‟s largest milk producing country. As per March 2001
India‟s 96000 Dairy Co-operative are integrated thorough a three Tier Cc-
operative structure. The Anand pattern, which is owned by more than 10
Objectives of NDDB:
To sponsor, promote, manage, acquire, construct or control any
relation to dairying.
international agencies.
COMPANY PROFILE
2.1) Dharwad Milk Union
Functions of DHAMUL
The main function of is to procure milk from villagers and pay
them the right price.
To educate the villagers about milk and its quality
To make‟Nandini‟ as a part of daily life.
To provide good quality of cattle feed, fodder, veterinary properly
and in an efficient manner.
To see that the DCS‟s are carrying out their activities properly and
in an efficient manner.
To see that the milk is brought from DCS‟s to the chilling centers
in the prescribed time.
To look the account of the DCS‟s supervise the purchase process
and market the milk and milk products.
MISSION STATEMENT
At DHAMUL we Endeavor to satisfy the taste and nutritional
requirements of the customers. Through excellence in marketing by
DHAMUL committed team, DHAMUL committed to offering quality
products that provide best value for product.
QUALITY POLICY:
To ensure pure, hygienic milk and milk products through
continuous improvement of quality standards.
VALUES:
Cleanliness
Total quality maintenance
Discipline
Co-operation.
Transparency
Arokya Dairy: it procures most of the milk from south side of the
Belgaum. It procures 10,000 litres of milk every day. It is located near
Desur a village of Belgaum district 10 kms away from city on NH4 A-
they supply most of the procured milk to the city.
Infrastructural facilities.
Infrastructural facilities of DHAMUL are as follows.
Security facilities.
Canteen facilities.
Shifts facilities-3shifts per day.
Land 22 acres
Achievements or awards
No awards
DCS
Chilling
Storing
Pasteurization
Separation
Homogenization
Storing
Packing
Dispatching
Part-B
McKensy’s 7S Model
1. Structure
Organizational Structure
Board of Management
Managing Director
Manager
Suprede Security Canteen Deputy Assistant
nt Officer Manager Manager
Administ
ration
Deputy Deputy Deputy
Manager Manager Manager Clerks Assistant Cooks Account Assistant
P&I F&F Veterina Compute Security Officer s
ry r Officer Grade I
Operator
Assistant Agricultur Assistant s
P&I e Manager Attainde Security Account Helper
Officer r Guards Assistant
Grade
I, II, III
Board of Management
Managing Director
Helpers Helpers
PRODUCTION DEPARTMENT
Production department is the main department wherein the raw material
is converted into finished into products. At DHAMUL production department
is well planned & adequately equipped manufacturing set up where all the
necessary infrastructure is available. The quality of the product is also
dependant on the production procedure.
In DHAMUL the raw milk is processed to form the good quality of
milk. During the processing the milk is differentiated depending on the contract
of FAT & SNF (Solids Not Fat)
The different types of milk different in quality are
1. COLLECTION OF MILK :-
In this stage the milk is bought from the various district co-operative
societies (DSC) to the main dairy in a can of 40 litters capacity in tempo‟s or in
any other vehicles. The cans marked with two different colours to differentiate
between the cow & the buffalo milk. One the milk is bought to the main dairy
it undergoes into following process.
2. UNLOADING
The cans were unloaded is called as dock station. The cans are unloaded
from the vans manually.
3. ORGANOLEPTIC TEST
This test is carried out by a person manually without using any machines
but using his sense organs like nose & hence it is called as organoleptic test.
This test is conducted before the cans are weighed. In this test various sub-tests
are conducted like:
SMELLING (ODOUR) TEST:-
A man at dock station or platform checks the acidic nature of milk by
smelling or tasting the raw milk. If the tasted milk has bad odors then the dairy
will pay lower rate to such society members than the normal rate.
AICDIC TEST
As the payment to the suppliers or DSC depends mainly on FAT & SNF
content in the raw milk. The supplier may add sugar to the milk so as to
increase the FAT & SNF content. Hence to avoid this adulteration sugar test is
done.
Its procedure is 10ml of milk is shaken in a test tube & 1ml of
hydrochloric acid. Few crystals of resorcinol is mixed to it. The solution is
shaken well & heated for five minutes. If solution turns organ color it is
demanded that sugar is mixed to it.
PESTEURIZATION:-
This step of production includes heating every partical of milk at 72
degree celcious in 15 seconds and it cold in less then 4 degree celcious. When
it is passing through pasteurization the cream is removed depending on the
quality of the milk required (standardization).
STORAGE:-
The last but not the process is the whole of production process is
storage. The milk packed in 500ml and 1000ml pouches are arranged in the
crates. Each cater contain 10 litters of milk. This caters are stored in cold room
which has a temperature of about 5 degree Celsius or below.
ADMINISTRATION DEPARTMENT
FUNCTOINS
1. Maintenance of attendance.
2. Establishment of billing.
3. Maintenance of service records.
4. Domestic enquiry.
5. To maintain shifts timing.
6. To look after recruitment process.
7. Conducting training to the new employees and also to the existing
once.
RESPONSIBILITIES OF ADMINISTRATION DEPARTMENT
To look after the overall administration of time office management.
Conducting training to the new employees and also to the existing once.
To look after over recruitment process.
To maintain shifts timings.
OFFICE WORK:-
1. Checking daily sales as per the respective agents.
2. Finding new areas where there is demand for milk.
3. Issuing tender and receiving application for opening new parlors and
agencies.
4. Fixing/organizing milk distribution routes.
5. Sending of milk / milk products as per the indent.
6. Keeping in track of the timing of vehicles and timely supply of milk.
7. Collection of cash from agents and depositing the same to the milk.
8. Attending complaints from the agents.
9. Meeting agents to solve their problems.
10. Draw new advertising strategy.
FIELD WORK:-
Sales promotional activities like advertisement in reality selling. The
product in the real marketing is very hard and tough job. The marketing officer
has to go the field and study the market and they have to plan the strategy. The
marketing mix plays a vital role while appointing the agents they take initial
deposit of Rs.2000 for Belgaum district and Rs.1000 in Goa. After receiving
deposit they issue bond to them. The bond consists of rules and regulation of
the union.
Personnel policies:
There are around 240 employees working. There are various policies
followed. The Administrative department forms the policies.
Promotion:
Promotion is on the basis of seniority.
Other facilities:
Shift allowance
Canteen facility
5. Skills
These are the distinctive competencies that are present in the
organization it is the design and development of products quality and service or
viability of product. The employees in this organization also have all the
distinctive skills that are required for the undertakings of research and
development activities. The DHAMUL is improving the employee‟s skills and
techniques through motivating them and giving proper training to them also
through giving proper working condition.
6. Style
a) DHAMUL has top to bottom or top down style system.
b) The style of organization is authoritarian. It means management cadre
follows authoritative.
The indicators of the style are:
Follows rules and orders
Reliable and dependable
7. Shared Values
The core or fundamental values that are widely share in the organization
and serve as guidelines that are important, these values have great meaning
because they focus attention and provide broader since of purpose.
PART-C
1) Fixed Assets
2) Investments
3) Capital Account
4) Depareciation
5) Current liabilities
7) Inventories
and appropriately arrange the necessary data. This requires the development of a process for
taking bits of information (inputs) and converting them into meaningful reports (outputs). The
a firm depends upon the type and information it needs. In effect, the output of an accounting
system dictates the way that information is to be accumulated. An accounting system must be
extremely flexible and capable of being tailored to the requirements of a particular firm.
The primary purpose of business activity is to make a profit, the business enterprise,
regardless of its size operates by combining physical resources and individual talents to
provide a product or service for members of society. Hopefully, resources received by the
firm from the sale of its products or performance of its services exceed the capital and labour
consumed in producing the product or providing the service. To achieve this result, managers
of a business enterprise are responsible for obtaining maximum advantage from use of
resources placed at their disposal. Managers need internal financial information to help them
make decisions regarding the use of the firms resources. Investors, creditors, and other
outside parties need external financial information in order to make decisions regarding their
Accounting Policies : Fixed assets are stated at original cost. Fixed assets held
with an intention of being used for production and providing goods and
services and which is not held for sale, for example fixed assets like, training
The fixed assets of DMU five year (1998-2003) is shown in Table 4.1
Table 4.1
1998-99 1106
1999-2000 1084
2000-01 1041
2001-02 9980
2002-03 9709
are suitable adjusted against the opening balance. The previous year balance
will be opening balance for current year. There is a decrease in the value of
2)Investments :
return from them other than those in which the enterprise is dealing. These
include. KCC bank share, KMF shares, KMF central office, fixed deposit,
cost and fair value; and long-term investment which is carried in the financial
statement are stated at cost, after providing for any diminution in value.
Table 4.2
INVESTMENTS
(Rs. in lakhs)
institution
share
LDBF
office
are used for stabilizing the liquidity position as well as strenghtening the
3)Capital Account :
in the business enterprise. The capital in a DMU is called share capital. The
share capitals ae classified into A class-share capital, these are the farmers
(Rs. in lakhs)
crores in DMU for its development. From 2000 onwords every year the
government started investing shares in DMU. A class shares are from farmers
societies. There are 723 societies. Shares price is Rs. 1000 per share, shares @
4) Depreciation :
Accounting Policy – Dharwad Milk Union follows Writen down value (WDV)
the transactions relating to an asset which take place during a year (i.e.
DEPARECIATION ACCOUNT
(Rs. in Lakhs
YEAR Dpreciation
1998-99 46.17
1999-2000 45.91
2000-01 46.93
2001-02 49.11
2002-03 46.83
Table 4.4 reveals that during the five years there is increase and decrease
5) Curent liabilities.
Table - 4.5
Current liabilities
(Rs. in Lakhs)
1998-99 431.37
1999-2000 45.91369.75
2000-01 46.93387.58
2001-02 49.11454.25
2002-03 46.83611.39
Table 4.5 reveals that during the year 1998-99 to 1999-2000 there is
decrease in value current liabilities. But from the year 1999-2000 to 2002-2003
includes all the expenses, purchases, sales and income. This accounting
standard deals with the various bases to be adopted in accounting the revenue
The financial position of DMU for the last five years is shown in Table 4.6
below-
Table - 4.6
(Rs. in Lakhs)
1998-99 -- 77.79
1999-2000 -- 71.33
2000-01 18.14 --
2001-02 -- 232.71
2002-03 -- 50.26
PART – D
ANNUAL REPORT
To, profit
TOTAL 30,05,70,417.82 30,05,70,417.82
Grants 84,858.00
Investments
B D C C BANK SHARE 4,36,102.00
BELGAUM DIST. CO. OP
UNION LTD. BGM 25,100.00
INDIAN FARMERS & F
OC OP LTD 1,00
I S B D HARAYAN 10,000.00
KMF SHARE 4,01,000.00 1,00
_______________
-----Continued
TOTAL
Income Statement :
Indirect Incomes
-----continued
4. To know about the types of milk and how can it will be stored in the cold
storage.
5. Proper manner of maintaining punch cards and every time alert security
centers.
7. Time Management.
2) DMU has incurred losses during five year i.e. 2000 to 2002
4) It is true that the milk union has training centre to train villagers
in regard to rear the cows and buffaloes and how to feed them
and what are different types of cows and buffaloes and what
type of yielding animals are suitable for there villagers etc., Milk
labourers.
6) It is found that trading and profit and loss account and balance
sheet is not satisfactory for all these five years. The milk union’s
gross profit and net profit is not at all improved but it has shown
losses continuously for the period of five years. And study has
these periods.
ratios of DMU shows less than standard ratio. The first and third
year is some how manageable but other three years shows very
10) The stock turnover ratio of DMU shows that the DMU manage
inventory efficiently. The ratio for the year 2000-2001 and 2001-
In the light of the above findings, the following suggestions have been
made to make the Dharwad co-operative Milk Producers Society Union Ltd
success.
prospective consumers.
www.nandni.coop.
ANNEXURE
Trading and profit and loss account & the balance sheet of DMU for the years
1998-99 to 2002-03.
CONCLUSION