NOTE ON ACTIVITIES OF GCC (February, 2011)

Submitted by
P.krishna lalitha Roll no:-10L61E0024 CHAITANYA ENGINEERING COLLEGE (KOMMADI) VSP.

GIRIJAN CO-OPERATIVE CORPORATION LIMITED East Point Colony, Visakhapatnam - 530 017, AP, India Phones: 0891 - 2796461, 2796463, 2796862 / Fax: 0891 2796345 / 2516300 E-mail: apgirijan@yahoo.co.in / md@apgirijan.com Grams: GIRIJAN website: www.apgirijan.

CONTENTS
CHAPTER-I INTRODUCTION OF THE TOPIC

CHAPTER-II

Introduction Need for the study Scope of the study Objectives of the Study Methodology Importance of the study Limitations of the study

GIRIJAN COOPERATIVE CARPORATION LIMITED Industry profile Company profile

CHAPTER-III

THEORETICAL FRAMEWORK OF THE STUDY Theoretical Background of the study

\CHAPTER-IV

DATA ANALYSIS & INTERPRETATION

CHAPTER-V

SUMMARY & SUGGESTIONS Summary Findings Suggestions Conclusion Bibliography

CHAPTER-I

Introduction Need for the study Scope of the study Objectives of the Study Methodology Importance of the study Limitations of the study

INTRODUCTION
VARIANCE Variances are deviations from plan. Think of variance as the difference between what was planned and what actually occurred. There are two types of variances 1) positive variance 2) negative variance Positive variance positive variances are deviations from plan that indicates that an ahead of schedule situation has occurred or that an actual cost was less than a planned cost. Negative variance Negative variances are deviation from plan that indicates behind schedule situation has occurred or that an actual cost was greater than a planned cost. The variance can be classified into two categories, on controllability.viz controllable and uncontrollable variances. Controllable variance The difference in between standard cost and actual cost which was controlled. Uncontrollable variance The difference in between standard cost and actual cost cannot be controlled. VARIANCE ANALYSIS Meaning: The term Variance means derivation, difference and so on. The variance in accordance standard costing is meant as the difference/ deviation in between two different costs standard cost and comparable actual cost incurred during the period. Variance analysis plays a major vital role for the critical success factor for any factor.

NEED OF THE STUDY

This is mainly used in production department and manufacturing units. Its main purpose is to producing product expenditure in the past time compared to Present time. In the producing product, if using man power whatever profitable is come for particular time period as well as present period.

SCOPE OF THE STUDY

Variance is a measurable change from a known standard or baseline. In other words, variance is the difference between what is expected and what is actually accomplished. In project management, variance baseline is established by identifying the cost, schedule and scope. Scope defines all the work which needs to be done. The project management team creates a work-breakdown structure (WBS) which is a hierarchical view of all tasks to be accomplished. The cost and schedule is then identified according to the work-breakdown structure (WBS). The cost for each goal or task is estimated sometimes by using an average daily, hourly, monthly or yearly rate. The fixed costs are identified for each goal or task. In addition, the project management workers estimate how long in days or hours a goal or task is to be accomplished, and then they create a time-phased budget to quantify the performance cost. After identifying the scope, schedule and cost, the project managers create a plan to manage variances from the triple constraints of scope, schedule and cost. A positive variance means the project is going on ahead of schedule or is under the cost. A negative variance means the project is late or over the cost. Variance tracking is key to project management and needs a logical approach. The project mangers identify the variance thresholds and develop a plan in case it happens.

OBJECTIVE OF THE STUDY

Variance analysis provides a framework for business managers to breakdown the overall performance of an organization, so that each individual element of the business can be isolated and analyzed in turn.

METHODOLOGY OF THE STUDY

The analysis of the project was based on the available information. Any information about the topic is called the data. The data was gathered from various sources i.e., Primary and Secondary sources.

Type of Data 1. Primary Data 2. Secondary Data

Primary Data Any information which is collected afresh and for the first time is called primary data. The primary data happen to be original in character. The information is gathered from concerned employees. The employees and manager of the financial department have provided the information needed for the study.

Secondary Data Information which has already been collected by somebody else or some other agency with definite purpose and which has already been processed is called secondary data. The secondary data for the study have been gathered from the balance sheets, income statement, annual reports and other books and manuals of the VISAKHAPATNAM PORT TRUST

IMPORTANCE OF THE STUDY

Costs of production are effected by internal factors over which management has a large degree of control. An important job of executive management is to help the members of various management levels understand that all of them are part of the management team. Standard costs and their variances are an aid to keeping management informed of the effectiveness of production effort as well as that of the supervisory personnel. Supervisors who often handle two thirds of three fourth of the dollar cost of the product are made directly responsible for the variance which, show up as materials variances (price, quantity, mix, and yield) or as direct labor variances (rate and efficiency).

Materials and labor variances can be computed for each materials item, for each labor operation, and for each worker. Factory overhead variances (spending, controllable, idle capacity, volume, and efficiency) indicate the failure or success of the control of variable and fixed overhead expenses in each department.

Variances are not ends in themselves but springboards for further analysis, investigation, and action. Variances also permit the supervisory personnel to defend themselves and their employees against failures that were not their fault.

A variance provides the yardstick to measure the fairness of the standard, allowing management to redirect its effort and to make reasonable adjustments. Action to eliminate the causes of undesirable variances and to encourage and reward desired performance lies in the field of management, but supervisory and operating personnel rely on the accounting information system for facts which facilitate intelligent action toward the control of costs.

CHAPTER-II
GIRIJAN COOPERATIVE CARPORATION LIMITED Industry profile Company profile

Company profile
GIRIJAN CO-OPERATIVE CORPORATION:
Girijan Cooperative Corporation (GCC) established in the year 1956 for the Socioeconomic uplift of Tribals in the state of Andhra Pradesh is serving around 4.0 Million tribals out of total tribal population of 5.2 Millions in the State.

COMPANY BACKGROUND:
In the year 1955, in order to improve the living conditions of the Scheduled Tribes in the State through their economic uplift and to eliminate their exploitation by plains men, the Government of Andhra Pradesh established "Andhra Scheduled Tribes Finance & Development Corporation Ltd." as a Company under the Indian Companies Act, 1913 vide G.O. Ms. No.2551, Education & Endowments Department, dt.14-12-1955. Again, the said corporation was registered on 16-4-1956 under the new Indian Companies Act-I of 1956. But the Government were confronted with the problem of providing adequate finances for the successful working of the corporation. Keeping in view the virtual impossibility for the effective working of the corporation as a company, the Government decided to go in for its voluntary liquidation and to start a Cooperative Society in its place with the same objectives. Subsequently as ordered by the Government in G.O. Ms. No. 2382, dt.11-10-1956, a Cooperative Society was registered on 26-10-1956 with the name "Andhra Scheduled Tribes Cooperative Finance and Development Corporation Limited" under the Madras Cooperative Societies Act, 1932. In the year 1970, its name was changed to the Girijan Cooperative Corporation Limited (GCC), Visakhapatnam. Mission: The mission of GCC is to keep the tribals of Andhra Pradesh, (economically the most backward community of the state) smiling by improving their economic status. Protecting the environment through regeneration of species of Minor Forest Produce. Ensuring pure and natural products to the consumer at reasonable prices.

II.

OBJECTIVES

a)

To ensure procure Non Timber Forest Produce (NTFP) collected by the Tribals and also Agricultural Produce (A.P) grown by the tribal farmers duly paying them remunerative prices and thereby eliminating middlemen and private traders who were indulging in unfair trade practices.

b)

To ensure supply Essential Commodities under the Public Distribution System (PDS) and other daily requirements (D.Rs) at reasonable prices to the tribal consumers through a net work of Daily Requirement (DR) sales Depots.

c)

To provide Short-term credit to the tribal farmers for their seasonal agricultural operation.

d)

To undertake activities such as grading and processing / value addition to the NTFP and Agricultural produce purchased from the tribals to realize better sale returns and for this purpose to own or hire necessary plant and machinery.

e)

To undertake generally such other activities as are conducive to the promotion of economic interests and welfare of the Scheduled Tribes and for the attainment of the above objectives.

COMPANY STRUCTURE:ORGANIZATIONAL HIERARCHY: GCC is a state level Apex organization with its Head Quarters at Visakhapatnam governed by the Board of Directors consisting of a Chairman, Official and Non-Official Directors nominated by the Govt. of Andhra Pradesh. The day to day affairs of the Corporation are administered by the Vice-Chairman & Managing Director who is a Super Time Scale IAS Officer.

The Project Officers of the Integrated Tribal Development Agencies (ITDAs) act as Executive Directors of GCC in the area of their operation. At present 1440 employees are engaged in the service of 2.6 million tribals through a network of 1 Regional Office at Hyderabad and 10 Divisional Offices coterminous with ITDA Headquarters. At present, 43 affiliated Girijan Primary Cooperative Marketing Societies (GPCMS) situated in sub-plan mandals of the State are functioning. GCC is having a wide network of 839 Domestic Requirement Sales Depots (DR Depots) in the tribal habitats in order to cater to the needs of the tribal consumers by supplying them essential commodities and other daily requirements. These depots function under the control of GPCM Societies. GCC is also having 3 industrial units viz., (1) Honey Processing Unit at Rajahmundry, (2) Sheekakai & Soapnut Powder Making Unit, Rajahmundry and (3) Soap Making Unit at Vizianagaram.

GCC is a state level Apex organization. Its activities are carried out through the affiliated Primary Societies. The money required for the procurement of MFP and SAP are provided to the Societies by GCC and the procurement is effected in weekly shandies and seasonal purchase centres. The stocks procured are taken over from the GPCMS and marketed by GCC to the best advantage of the MFP gatherers. The GPCMS are required to run the DR Depots on their own with the working capital provided to them. The credit activity is carried out through GPCMS duly providing them credit limit and advancing moneys in every season. The other activities carried out by GCC include value addition measures to the tribal produce and its retail marketing in the consumer market. The Divisional Manager is the Head of the division. He supervises all the activities of the GPCMS in his area of operation. He also acts as Chairman on the Board of Management of the GPCM Societies. The membership in the GPCMS is open exclusively for the local tribals and all members enrolled form the General Body of the Society. The Board of Management of the Society consists of three Elected Directors from among its members while six official Directors including the Chairman are nominated by the District Cooperative Officer as per the directions of

the Government. The day to day administration of the GPCMS is carried out by the Manager who is also the Secretary of the Society under the overall supervision and control of the concerned Divisional Manager. The D. R. Depots and Purchase Centers function under the direct control and supervision of the Manager / Secretary of the GPCM Society. The GPCM Societies are designated as Agents to GCC for the procurement of Minor Forest Produce and Surplus Agricultural Produce (SAP) from the tribals in their respective areas of operation. They receive money from GCC, procure the produce in the weekly shandies, seasonally notified purchase centres and at the door steps of the tribals at prices fixed and declared by GCC from time to time and handover the produce to GCC as and when procured or once in a month. A commission @ 2% is paid by GCC to the GPCMS on the value of the produce purchased and handed over to it. The GPCM Societies run the DR Depots on their own with the working capital provided by GCC. The major activity carried out by the Societies is lifting and distribution of Essential commodities such as Rice, Sugar, Wheat, Edible oil and Kerosene under the Public Distribution System (PDS) to the ration card holders and also supply of other daily requirements such as dalls, oils, iodised salt, onions, jaggery, cosmetics and other items at reasonable rates to the tribal consumers in general. The GPCMS also under take supply of food provisions and Cosmetics to the Tribal Welfare Hostels, Residential colleges and schools of APTWREIS. The supply of food provisions to Midday meals, Food work Program, and Grain Banks in tribal areas is also taken up by the Societies. The maintenance of Mandal level stock points and transportation of Essential commodities under Stage-II in the tribal areas on behalf of the A.P.State Civil supplies Corporation, Supply of LPG, sale of Steel and cement etc. are the allied activities taken up by the Societies as part of their D.Rs business. GCC obtains credit limit from NABARD AND A.P.STATE COOPERATIVE BANK and at times from its own funds and advances monies to the GPCM Societies approving their Credit Plans and Dalwal Applications in advance to disburse short term credit to the eligible tribal farmers in Khariff / Rabi seasons. The scale of finance for each crop is fixed at the GPCMS level taking into account the existing agricultural practices, crops raised, yields expected and the repaying capacity of the tribal farmers so as to avoid overburdening them with the loan. The rate of interest is as approved by the Government from time to time. The loanees are provided the facility to repay the loans in cash in easy installments and also in kind i.e. by way of selling

MFP/ SAP to GPCMS at their convenience. The Societies repay the loans to GCC after collecting the same from their members. The Staffing pattern of GCC is approved by the Government. GCC receives subsidy from the Government for payment of Salaries to its staff to the extent of staffing pattern approved by the Government. The expenditure on the staff costs over and above the sanctioned strength is met by GCC. The staff working in the GPCM Societies is on deputation from GCC for which GCC provides them 60% of their salaries while the GPCMS have to meet the balance 40% from their own resources.

1. Managing Director: The Managing Director is the Chief Executive of the Organization. He also acts as ViceChairman on the Board of Directors. As per the powers delegated by the Board of Directors of GCC under Bye-law No.32 (vi) he shall be the final decision making authority in all business, financial, service matters of the Corporation. He shall be the competent authority to deal with all legal matters for and on behalf of the Corporation. He can re-delegate his powers where ever required to the sub-ordinate officers. He shall appraise the progress of all activities to the Board of Directors from time to time 2. General Manager (Administration): He is the second-in-command. The officers in-charge of Engineering and Transport wings shall work under his direct control. He shall exercise general control and supervision over the working of all societies and Divisional Offices in Andhra Region. He shall institute and defend all legal proceedings and arbitration claims and execution petitions against the present employees and ex- employees of the Corporation Head Office with the permission of the VC & Managing Director. As per the powers delegated to him under the GCC Employees Service Rules, he shall be the Appellate authority over the final orders passed by the Divisional Managers of Andhra Region in disciplinary cases. He is answerable to the Managing Director in all matters of administration. 3. General Manager (Finance): He shall be in charge of the Accounts Department in the Head Office and shall look after all matters relating to accounts of the Corporation and GPCM Societies. He is responsible for regulated flow of funds, receipts and expenditure, regularization of natural dirges in stocks and

recovery of inadmissible deficits in MFP/SAP handled by the Units. He is also responsible to prepare annual budget of the Corporation and exercise strict budgetary control by enforcing financial discipline at all levels. He shall prepare all financial statements, Profit & Loss accounts, balance sheets of the GPCMS and also GCC and shall furnish such statements to the Statutory Audit from time to time and ensure that the Audit is completed within the stipulated time. He shall also arrange to get the assessment of Sales Tax / Income Tax of the Corporation completed within the stipulated time. He shall be working under the direct control of the Managing Director. 4. General Manager (Marketing): He shall be in charge of the Marketing Department in the Corporation Head Office. He shall tour at least 15 days in a month to plan and oversee the procurement, sale and inventory control of Minor Forest Produce (MFP) / Surplus Agricultural Produce (SAP) in the divisions. He shall inspect the purchase counters in the weekly shandies, seasonal purchase centers and godowns. He shall be keeping regular watch on the market trends and arrange timely fixation of purchase prices for all centralized commodities and communicate them to the Divisional managers and Managers for taking up procurement. It is his primary responsibility to see that the MFP & SAP stocks are disposed of quickly to the best advantage of the Corporation by following the stipulated procedures and after obtaining orders from the Managing Director. He shall prepare trading results for all commodities. He shall ensure that all Government Rules and Regulations on forest lease units and on procurement, sales and transport of the produce etc. are followed by the field staff. He shall assess the demand for various products of the Corporation in the consumer/ retail market, plan for processing of the produce and arrange for its retail marketing through Retail Marketing network besides through the DR Depots and supplies to Tribal Welfare Hostels. He shall be reporting on daily basis to the Managing Director. 5. General Manager (Domestic Requirements): He shall be in charge of the D.Rs department in the Head Office. He is responsible for proper functioning of all the D. R. Depots and D.Rs main godowns of the GPCMS. He shall prepare Annual Action plan for the DRs Business which includes the lifting and sale of Essential Commodities under Public Distribution system, purchase and sale of other daily requirements through the net work of D. R. Depots. He shall closely monitor distribution of rice under Food for Work Program, Midday meal program, Grain Banks and other schemes of the Government

and realization of the margins / commission from the A. P. State Civil Supplies Corporation. He shall be responsible for closely monitoring credit supplies of food provisions and cosmetics to the TW Hostels and schools and realization of money from the Sundry Debtors. He shall also supervise the maintenance of Mandal level Stock points for Essential Commodities and Stage -II transportation of stocks to the D. R. Depots and for timely realization of claims from the A. P. State Civil Supplies Corporation. It is also his responsibility to closely monitor the functioning of LPG godowns and D. R. Depots run by the Women Self Help Groups. He shall be answerable to the Managing Director. 6. Dy. General Manager (Credit): He shall be working under the direct control of General Manager (Finance)He is responsible for preparation and submission of Credit limit applications to APCOB/NABARD and pursue for its sanction. He shall regulate the provision of Agro-Credit facilities to the tribal members of the affiliated primaries and ensure prompt disbursal and recovery of loans and coverage of legal action in respect of all overdue loans. 7. Dy. General Manager (Retail Marketing & Exports): He shall be responsible for proper functioning of all the Industrial Units of the Corporation and ensure proper processing and packing of products in the Units. He shall make proper advance planning for procuring various raw materials required by the Units and identifying the dependable sources of supply. He shall be responsible for compilation of trading results of each of the industry periodically and appraisal to Managing Director. He shall ensure that all the Industries are operated to the optimum utilization level with utmost economy. He shall also monitor the flow of finished products to the Retail outlets and authorized Distributors of the Corporation. He shall also assist the General Manager (Marketing) in exploring the export avenues for the products of GCC. He shall be reporting directly to VC&MD. 8. Dy. General Manager (Regional Office, Hyderabad): He shall exercise control and supervision over the working of the Staff in Regional Office. The Central godowns and RMD godowns at Hyderabad function under his control. The branch at Kamareddy of Nizamabad district also functions under his direct control. He shall be coordinating the conduct of monthly tender-cum-auctions of Gum and other MFP/AP items at Hyderabad. He shall also arrange for prompt delivery of Gum and other stocks from the Central Godowns, Hyderabad to the parties as per the sale confirmation orders issued by the VC&MD.

He shall cause inspection of the godowns and physical verification of stocks at least once in a quarter including statutory verification. He shall act as Liaison Officer between the Corporation and the various departments of the State Secretariat, Commissionarates such as Tribal Welfare, Civil Supplies, other Government offices and other institutions in the matters concerning the Corporation. He shall also keep close liaison with Legal Adviser of the Corporation at Hyderabad and vigorously pursue the court cases and allied legal matters. He shall be reporting directly to the Managing Director.

9. Vigilance Officer (Andhra): He is essentially a touring officer and will tour at least 20 days in a month in connection with enquiries and surprise checks to various units, shandies, D.R.Depots and godowns of the Corporation in Andhra Region. He shall make discrete enquires with the local tribals regarding various field operations of GPCMS / GCC. and suggest remedial measures to curb malpractices, deficits in stocks and misappropriations etc. During his visits he shall physically verify stocks in godowns, DR Depots and purchase centers in case of doubts. He is directly answerable to the VC&MD. 10. Vigilance Officer (Telangana): He is essentially a touring officer and will tour at least 20 days in a month in connection with enquiries and surprise checks to various units, shandies, D.R.Depots and godowns of the Corporation in Telangana Region. He shall make discrete enquires with the local tribals regarding various field operations of GPCMS / GCC. and suggest remedial measures to curb malpractices, deficits in stocks and misappropriations etc. During his visits he shall physically verify stocks in godowns, DR Depots and purchase centers in case of doubts. He is directly answerable to the VC&MD. 11.Transport Officer: He shall be working under the direct control of the General Manager (Admn.) and shall be responsible for proper upkeep of all vehicles of the Corporation. He shall visit all units and periodically check up the condition of the fleet. He shall scrutinize the estimates for repairs to vehicles and arrange to obtain sanction orders from the competent authority. It is his

responsibility to see that all repairs and renewals to vehicles are executed properly as per the

sanctioned estimates. He shall watch prompt payment of taxes of the vehicles and coverage of their insurance. 12. Dy. Executive Engineer: He shall be in charge of all original works and maintenance works of the Corporation. He shall periodically inspect office buildings, godowns, DR Depots, etc., and ensure their proper maintenance. He shall follow the procedures laid down by the Roads and Buildings Department for execution of different works. In regard to the works entrusted by the Corporation to Roads

& Buildings Department / Panchayat Raj/ TW Engineering Departments, etc., he shall keep close liaison with the concerned departments and render them assistance as required from time to time for completion of the works within the stipulated time. He shall be working under the control of the General Manager (Admn) 13. Divisional Manager: He is primarily responsible for proper functioning of the GPCM societies in his division. He shall be responsible for purchase and sale of Minor Forest Produce and Agricultural Produce from the tribals. He is competent to fix purchase prices for decentralized items and also pursue for their timely disposal. Subject to the limits prescribed, he is competent to enhance or reduce the purchase price of Minor Forest Produce and Agricultural Produce. He shall visit not less than 8 shandies in a month and also physically verify stocks at least one Godown every month. He shall arrange to purchase required items of DRs in bulk at competitive rates after observing all formalities and arrange for their distribution to the DR Depots through the GPCM Societies. He shall inspect at least 5 Dr Depots in a month and also cause inspection of all the DR Depots every month by the Manager and Staff of the GPCMS. He shall also be responsible for the conduct of quarterly / half-yearly physical verification of stocks in all the godowns of his division. He is responsible for proper maintenance and up keep of Vehicles plying in his Division. He shall take every possible step to arrest smuggling of Minor Forest Produce from the lease holds of the Corporation in his division. As Chairman of the Primary Societies it is his duty to conduct Board and General Body meetings as prescribed in the bye laws. He shall maintain close liaison with the Project Officer, Sub-Collector, Officers of the District Administration and Local officers for their active cooperation in carrying out the day to day business of the

Corporation. He shall be competent to deal with service matters and decide disciplinary cases of employees as per the powers delegated to him under the service rules.

14. Senior Manager / Junior Manager in Divisional Manager's Office: He is the ministerial head of the Divisional managers office and he shall exercise proper control and supervision over all the staff members of the office .He is directly answerable to the Divisional Manager in all matters.

15. Manager of the GPCM Society: He is the executive head of the society and shall be responsible for its general management. He shall have overall control over the staff of the society. He shall, with the prior approval of the Chairman of the society call for the meeting of the Board of Directors and General Body of the society as per the Bye-laws. In order to bring the entire tribal population into cooperative fold, he shall ensure total enrollment of all the tribals who attain the age of majority as members of the society. He shall be responsible for timely filing of arbitration references and execution petitions for and on behalf of the Society as per the instructions issued from time to time. He is primarily responsible to organize purchases of Minor Forest Produce and Agricultural Produce in his society. He shall visit all major shandies in the area and organize the purchases. He shall ensure proper weighment of stocks in the purchase centers and D. R. Depots and payment of correct purchase prices to the tribals. He shall see that all DR Depots in his Society area function properly and cater to the need of the tribal consumers effectively. He shall inspect and physically verify at least 5 DR depots in a month and cause inspection of all the DR depots in his Society every month. He shall see that all possible steps are taken to arrest

smuggling of minor forest produce. All the vehicles allotted to the society shall be under his control. He is responsible for their maintenance and optimal utilization. He shall ensure proper disbursal and recovery of loans and initiation of legal action against defaulters.. He shall see

that all loans collections are promptly remitted to the corporation Head Office and ensure proper and up to date maintenance of records and registers as prescribed. He shall maintain close liaison with local officers such as Project Officer, Sub Collector, Revenue officers and officers at the district level and seek their active cooperation in sorting out matters relating to the society. He shall be working under the overall control of the Divisional Manager. 16. Manager, Honey Processing Unit / Sheekakai & Soapnut Powder Making (SSP) Unit, Rajahmundry:

He shall be in charge of the Honey Processing and SSP unit at Rajahmundry. He shall exercise supervision and control over the staff working in these units. He shall ensure proper upkeep of quality of the raw produce and finished products.. He shall plan for all operations relating to processing, agmarking, grading and bottling of honey and packing of sheekakai and soapnut powders. He is responsible to supply stocks as per the indents received from the Units and as per the sale orders issued by the Corporation Head Office. He shall arrange to maintain processing register for Honey and sheekakai and soapnuts and such other accounts and registers prescribed from time to time. He shall incur expenditure strictly in accordance with the sanctions and instructions of the Corporation Head Office. He will operate on the bank accounts jointly with the Accountant. He shall also look after the bee-keeping expansion programme taken up by the Corporation and arrange for procurement of bee boxes and other material as per the programme approved by competent authority in this behalf. He shall at the end of every half-year submit the trading results on the operations of the Units. He shall be responsible for furnishing of necessary statements, vouchers and other required information to the Auditors and for timely completion of Audit. He shall be reporting directly to the General Manager (Mktg). 17. Sr. Manager (Systems): He shall be reporting to the Managing Director directly. He shall be in charge of all systems in CHO and field units and ensure their optimum performance. He shall be responsible for compilation of data through proper programming, its preservation and retrieval at short notice. He shall compile spread sheets, flow charts and develop data bank of all important activities of the Corporation for furnishing to Government, financial institutions and other agencies. He shall tour the divisions and regional office and oversee the computerization program and ensure flow of information through electronic means to CHO. He shall plan for self assessment and appraisal of each activity of the GCC through computerization. 18. Accountant of Divisional Manager's Office: He shall work under the control of the Divisional Manager. He shall be in charge of all accounting matters in the Divisional Office and personally responsible for writing cash book, General ledger, subsidiary ledgers like due to, due-by, Sundry Debtors registers etc., and ensure their up to date maintenance. He shall operate bank accounts of the Divisional office under joint signatures of the Divisional Manager. He shall hold the double lock of the cash chest along with Cashier. He shall scrutinize all expenditure vouchers and recommend to the Divisional Manager

either for its acceptance or rejection with valid reasons with reference to the guidelines issued by the CHO such as budget/administrative sanctions etc. He shall scrutinize the T. A bills of the staff members of the Divisional Office and the Primary Societies and submit them to the Divisional Manager for pass orders. He shall check the stock registers of all MFP godowns

which are under the control of the Divisional Manager. He is responsible for furnishing all the financial statements to the Statutory Audit, Sales Tax, Income Tax Departments and ensures timely completion of audit and tax assessment of the Divisional Office. He shall also attend to the rectification of Audit defects and maintain prescribed register there for. He shall discharge such other duties and responsibilities entrusted to him by the Divisional Manager from time to time. 19. Accountant of GPCMS: He shall be working under the control of the Manager. He shall be entirely responsible for maintenance of all accounts of the Society. He shall personally maintain the cash book up to date and also maintain General Ledger, Subsidiary Ledgers like Due-To, Due-By, Sundry Debtors, Sundry Creditors and Liability Registers of Salesmen and CCPAs, Purchases and Sales Registers of MFP, AP and DRs and all other Registers as prescribed. He shall exercise strict financial control over all the transactions of the society. He shall be responsible for receipt of funds, its proper utilization and economy in expenditure and strict budgetary control. He shall submit proposals for writing off the admissible dirges in the prescribed proforma within one month from the date of noticing such deficits. He shall be responsible for furnishing Statements of accounts and books and registers to the Auditors and for timely completion of Audit. He shall also attend to the rectification of Audit defects and maintain prescribed register in this regard. He shall reconcile the liability accounts of all the DR Depots and CCPAs every month and closely watch over the excess stock holdings. He shall ensure up to date maintenance of godowns-wise stock register with age-wise classifications of stocks by the godown clerk, regularly check the registers and attest each and every entry made therein. He shall file arbitrations to recover inadmissible stock deficits and misappropriated amounts to recover the amounts as per the provisions of law. 20. Stores / Godown Assistants: He shall be responsible for proper maintenance and up-keep of godowns in his charge and maintain Godown-wise stock registers, invoice books, weighment registers and all other

registers as prescribed from time to time. As custodian of stocks he shall be responsible and accountable for the stocks received by him in the godowns till such stocks are disposed off or transferred to other pooling centres. Whenever infestation is noticed in stocks, he shall arrange for fumigation and also ensure using of proper dunnage in godowns. The stocks received by him shall be standardised and stacked properly in the godown. He should ensure proper up keep of empties in the godowns and upto date maintenance of accounts relating the empties. 21. Office Assistant (Senior / Junior Assistant): He shall work under the control of the Superintendent concerned and attend to the correspondence work, maintenance of personal registers, periodical registers, files and registers as prescribed from time to time. 22. Typist: He shall work under the control of the Superintendent concerned and attend to the fair copying and dispatch work and maintenance of prescribed registers there for. 23. Data-Processor-cum-Programmer: He shall work under the control of the Superintendent concerned and attend to the Computerization and programming as entrusted to him from time to time. 24. Data Entry Operator: He shall work under the control of the Superintendent concerned and attend to the Computerization of data as entrusted to him from time to time. 25. Credit-cum-Procurement Assistant: He shall work under Control and supervision of the Manager. He is primarily responsible for procurement of MFP & AP in weekly shandies, seasonal purchase centres and also at the door steps of the tribals in his jurisdiction and achieve the targets fixed. He shall be responsible for quality in stocks while procuring and shall pay correct prices to the tribals for their produce besides ensuring proper weighment of stocks. The stocks procured by him shall be handed over to the designated godowns once in a week under proper Invoice and acknowledgement obtained. He shall remit back the unutilized purchase advances, if any, after the closure of purchases on the same day or the next day to the office. He shall also be responsible for timely preparation of Realistic credit plans, credit limit applications and drawal applications and ensure timely disbursal of loans to all the eligible tribal farmers. He shall also prepare Demand, Collection and Balance statements accurately for all varieties of loans such as SAO, MT, LT, MTC,

consumption loans, Self Help Groups loans etc., and furnish to Manager or any other inspecting officer as and when demanded. He shall be responsible for the collection of loans and prompt remittances of such collections to the GPCMS. He shall also ensure proper functioning of the D. R. Depots in his area of operation and monitor the performance of the Salesmen closely. He shall inspect all DR Depots in his jurisdiction at least once in a month and submit the inspection reports to the Manager. He shall keep close watch on illicit storage and movement of MFP from the lease holds of the Corporation and arrest smuggling. He shall not purchase MFP and AP from middlemen including tribal middle men and shall purchase directly from the MFP gatherers only. He shall maintain all prescribed registers up to date. 26. Salesman: He shall be working under the overall control and supervision of the Manager. He is primarily responsible for proper maintenance and upkeep of the DR Depot. He shall ensure proper display of all items in the DR depot so as to easily catch the eye of the tribal consumer. It is a statutory obligation to keep price board at conspicuous place in the premises of the depot clearly indicating the stock balances of various commodities as on date and the sale rates of each commodity. He shall also display a price board at the depot indicating the purchase prices of various commodities of MFP & AP that are being purchased at the depot. The required licenses for controlled commodities etc., shall be displayed conspicuously in the depot. He shall also ensure that all daily requirements of the tribal consumers in adequate quantities are made available in the depot. He shall see that the stocks are liquidated quickly to avoid accumulation in the depot exposing to the risk of spoilage. If there are any price fluctuations, he shall promptly report to the Manager for either increasing or reducing the prices in tune with the local market trend. He shall be responsible for all stocks as per the stock register and liability register. He shall get his liability account reconciled with the one maintained at the Society Office every month.. He shall receive stocks from the society under proper wighment as per the indent placed by him. He shall promptly remit all sale proceeds either in the bank or to the GPCMS office as prescribed by the Manager whenever the sale proceeds exceed Rs.5000/-. He shall purchase MFP/ AP brought by the tribals to the depot at the rates prescribed by the Manager. The purchase advance taken shall be accounted for in a separate cash book. The stocks so procured shall be sent to the main godowns as quickly as possible. He shall maintain all registers as

prescribed. He shall keep an upto date village wise/ loanee wise DCB list of all types of loans and collect loans from the tribal loanees either in cash or kind issuing them proper receipt. Normally the files are processed by the Office Assistants and route them through the concerned Superintendents to the Departmental Officers viz., General Managers. The decisions are taken by the General Managers with in the limit of the powers delegated to them. In the matters beyond the competency of the General Managers, the files are circulated to the Managing Director for taking decisions. Regarding the fixation of purchase prices, finalization of tenders and disposal of stocks, the files processed by the Section Assistants are routed to the General Manager (Marketing) through the Section Superintendents and the General Manager in turn circulates the files to the Managing Director. In all such matters, the Managing Director is the decision making authority. In respect of the files dealing with engineering works, the files processed by the Section Assistants are routed to the General Manager (Administration) through the Deputy Executive Engineer and the General Manager will be submitting the file to the Managing Director for decision making. The Transport Officer will be submitting the files to the Managing Director through the General Manager (Administration) for taking decisions. The files originating in the Finance Department from the Section Assistants on the fixed items of expenditure and also on the routine items with in the limit of budget provisions will be submitted to the Deputy General Manager (Finance) who will forward them to the General Manager (Finance) for approval. The General Manager (Finance) will pass the expenditure vouchers within his competency and in case the expenditure is beyond his competency, he circulates the files to the Managing Director for taking decisions. In the case of Domestic Requirements (DRs) business activity, the files are processed by the Section Assistants and routed to General Manager (DRs) through the concerned Superintendent and the Deputy General Manager who will circulate the files to the Managing Director for taking decisions. Channel of Supervision The Section Superintendent will be scrutinizing the files processed by the Section Assistants and circulating the files to the Dy. General Manager. After supervision by the Dy.

General Manager, the fill will be routed to the higher authority i.e. General Manager / Managing Director. Accountability The Section Assistant i.e. Junior / Senior Assistant is accountable for the incoming tappals and he shall submit the files to the concerned Superintendents. He is also accountable for the dispatch of outgoing references after fair copying and for filing of office copies in the connected files after dispatch. The Section Assistant shall also be accountable for proper maintenance of the Personal Registers duly recording necessary entries for the incoming tappals and the outgoing references.

The Institutional Arrangement in the Service Of Tribals

At present 1084 regular and 378 contract employees (OSD-1, Drivers -44; DEOs40 Salesmen -294) are engaged in the service of tribals through a net work of 1 Regional Office, 10 Divisional Offices, 43 Girijan Primary Cooperative Marketing Societies (GPCMS) and 839 DR Depots in the state.

Divisional Offices & Girijan Primary Co-op Marketing Societies (GPCMS)

For effective administration, GCC has established 10 Divisional Offices & 43 Girijan Primary Coop Marketing Societies (GPCMs) across its area of operations. Each Divisional Office controls 4 to 5 GPCM Societies.

Establishment of Domestic Requirement Depots (DR Depots) in tribal areas

GCC has established 839 Domestic Requirement Depots (D.R.Depots) in the tribal habitats to cater to the needs of the tribal consumers by supplying essential commodities under Public Distribution System (PDS) and other daily requirement commodities. These DR Depots are manned by the salesmen who attend to diversified activities making DR Depot as center of all business activities such as procurement of NTFP / A.P throughout the year and disbursement / recovery of loans for agricultural operations besides attending to the regular function such as sale of ECs and other DRs. The Credit-cum-Purchase Assistant (CCPA) The most important duty of CCPA is to collect NTFP /A.P through out the year from the very door-steps of the tribals besides making purchases every day at the seasonal purchase centers and weekly haats (Shandies) . Besides these functions, the CCPA disburses loans also to the tribal farmers for their agricultural operations and recovers the same both in cash and kind through procurement of NTFP / A.P.

V. PERFORMANCE INDICATORS

a) b) c) d)

Procurement of Non Timber Forest Produce & Agricultural Produce Sale of Essential Commodities and other DRs Credit Disbursement & Recovery Sale of value added products

VI.

PERFORMANCE DURING THE LAST FIVE YEARS

S. ACTIVITY No. 1 Purchase of NTFP 2 Sale of ECs 3 4 5 6 Sale of other DRs Credit Disbursement Credit - Recovery Sale of Value Added Products TOTAL

2006-07 2824.05 7065.46 8038.12 335.74 315.17 840.99 19419.53

2007-08 2486.13 7493.05 9296.16 343.42 392.47 1075.00 21086.23

2008-09 1684.72 7883.35 9128.91 374.34 379.88 961.50 20412.70

2008-09 1446.22 5934.48 10499.36 178.36 1697.12 1260.31 21015.85

2009-10 1149.45 5676.52 11714.4 9 159.45 125.68 1240.34 20065.9 3

ACTION PLAN FOR THE YEAR 201011 (Achievement up to February, 2011)

(Rs. in Lakhs) Sl. No. 1 2 3 4 5 ANNUAL TARGET 1867.60 22500.00 600.00 772.00 2500.00 28239.60 ACHIEVEMEN T (Upto Jan.11) 970.89 16526.73 243.67 151.20 1429.68 19322.17

ACTIVITY Purchase of NTFP Sale of ECs & other DRs Credit - Disbursement Credit - Recovery Sale of Value Added Products TOTAL

MAJOR NTFP PROCURED DURING THE LAST FIVE YEARS : (Qty. in Qtls. & Value Rs. in Lakhs)

Sl. No. 1 1 2 3 4 5 6 7 8 9 10

Name of the Commodity 2 Gum Karaya Gum Thiruman Gum Olibanum Gum Kondagogu Gum Dikamali Myrobalans Nuxvomica Seeded Tamarind Deseeded Tamarind Tamarind Seed

2005-06

2006-07 Qty. 5 Val. 6 510.77 0.23 9.33 40.60 0.21 21.98 133.36 440.63 74.17 12.62 Qty 7

2007-08 Value 8 313.55 0.75 6.82 21.46 0.35 18.92 17.01 289.45 76.20 15.20 Qty 9

2008-09 Value 10 226.74 0.29 3.12 14.39 0.00 23.81 71.91 382.22 58.27 0.65 Qty 11

2009-10 Value 12 213.23 0.14 1.65 9.40 00.0 8440.65 1666.11 22796.87 864.00 868.00 48.21 27.46 268.43 13.73 1.81

6179 22 130 622 130.00 5948 1416 56769 13376 15463

534.25 1.43 3.08 49.29 0.00 12.06 23.78 469.71 177.55 62.04

6050.40 4.33 246.03 420.26 17.25 7862.31 8387.02 50113.40 3999.5 3270.23

3715.97 14.04 174.64 222.96 29.02 4750.87 1103.31 37816.86 4897.05 4106.01

2392.31 5.47 79.02 143.02 0.00 4361.64 4513.00 47783.29 3277.31 314.20

1965.32 2.79 41.84 93.44

11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Pungam Seed Cleaningnuts Markingnuts Mohwa Seed Mohwa Flower Honey Sheekakai Soapnuts Hill Brooms (Nos) Hill Brooms (Qtls.) Wild Brooms (Qtls.) Wild Brooms (Nos.) Adda leaf Naramamidi Bark Teripods Maredugeddalu Others Agricultural Produce Medicinal Herbs TOTAL

2989 1872 5492 6189 13706 2335

20.80 23.77 26.66 65.24 84.08 186.47 17.58

745.18 1320.74 8352.23 9441.87 15519.83 3523.28 2957.72 2550.45 390623 3.60 692.55

5.99 12.47 41.70 104.49 93.74 281.53 29.62 23.80 56.09 0.07 10.14

2847.9 232.17 7714.17 3063.44 6183.32 3088 1661.8 3769.32 319092 20.11 1137.74 50

28.48 2.09 38.57 33.70 43.28 246.96 14.85 40.27 46.06 0.36 17.38 0.00 32.82 17.51 0.00 47.99 25.99 288.04 0.66

2190.22 189.22 10072.76 2437.75 5621.99 2731.89 2124.61 468.53 56183.00 0.50 457.32 0.00 2819.93 1655.24 10.76 635.48

22.98 1.70 50.37 28.85 36.74 217.11 17.00 4.48 7.33 0.01 7.89 0.00 13.30 34.74 0.04 31.95 34.85 143.96 11.52 1446.22

982.40 235.98 22.53 3598.18 1835.95 1477.26 1474.10 991.17 76669.00

10.79 2.15 7.99 42.64 11.02 122.77 9.78 14.28 18.60

674.92 3411.56 12.50 972.98 99.10 8865.83 1929.02

3.35 42.28 0.15 14.37 0.30 37.95 34.80

476.24

9.41

9140.67 1850.89

46.70 37.69 0

6820.95 875.16 0 1058.93

1511.31 930.00

8.59 23.25

1258.83

31.44 75.25 826.37

762.76

25.57 63.16 409.47

271.12

15.48 8.47 249.11 11.06 1149.45

2824.05

2486.13

1684.72

Procurement Particulars of Agricultural Produce for the last Five Year (Qty. in Qtls. & Value Rs. in Lakhs)
Sl. No. 1 2 Name of the Commodity French Beans(Red) Frech Beans(white) 2005-06 Value 131.63 54.55 2006-07 Qty Value 3517.24 2586.16 90.49 98.89 2007-08 Qty Value 3663.51 711.38 97.63 20.79 2008-09 Value 20.6 4.33 2009-10 Qty Value 639.04 127.62 25.39 4.95

Qty

Qty

7252.64 2248.55

685.75 125.19

3 4 5 6 7 8 9 10 12 13 14 15 16 17 18

Niger seed Annatoo seed Jowar Ground nut Redgram Turmeric Dry Chillies Paddy Maize Cotton Coffee Seed White beans others (AP) Cuttings Medicinal Herbs TOTAL

395.59 190.78 21335.43 211.30 2245.91 773.12 979.12 13864.00 28834.97 637.80 18.55 60.17 9971.99

5.54 2.19 159.28 3.58 34.06 26.84 29.86 82.39 160.38 12.52 1.37 0.50 121.68

20.46 94.21 3042.04 386.80 1536.93 800.97 3540.38 3924.34 199.40 0.35 270.71 3414.50

0.33 1.19 27.60 7.50 48.60 34.03 21.66 22.48 3.85 0.02 8.94 40.18

304.59 168.19 69.00 0.00 170.70 1292.27 1009.45 810.39 330.24 0.00 370.75 300.67

8.62 4.82 0.55 0.00 3.83 36.83 38.72 5.21 1.99 0.00 35.18 3.75 30.12

8.49 38.06

0.30 1.01

17.18 40.17

0.58 1.41

91.00 859.49 712.91 518.00 0.00 0.00 298.07 69.80

1.82 30.28 33.57 4.81 0.00 0.00 25.82 1.97 19.45

1083.59 1383.30 2058.00 3758.00 4.04 170.07

83.40 65.88 20.95 38.63 0.38 3.87 0.16 4.87 253.95

826.37

409.47

288.04

143.96

The Strategy for Marketing NTFP:

Efforts are made to market NTFP by establishing advanced tie-ups with Government Institutions and other end users/user industries through auction cum tenders. GCC also processes certain NTFP into Ready to Use Products (Value added products) and sells to consumers through retail network.

Sl. No. Name of the Commodity GUMS & RESINS LIKE 1 GUMKARAYA, GUM OLIBANUM etc. 2 HONEY 3 TAMARIND

Avenues of Marketing Bulk Sale to Exporters Processing, packing and marketing in retail. Processing, packing and marketing in retail through FP Shops and distribution net work. Also, bulk sales through tender cum auction. Processing, packing and market in retail through distribution net work. Also, bulk sales through tender cum auctions.

HILL BROOMS

5 6

SHEEKAKAI, SOAPNUTS ETC. MOHWA FLOWER

Bulk Sales and Processing, packing and marketing in retail Bulk Sales

TREE BORNE OIL SEEDS LIKE 7 PONGAMIA SEED, MOHWA SEED 8 NUXVOMICA 9 MAREDUGEDDALU 10 AMLA 11 NARAMAMIDI BARK 12 CLEANING NUTS MYROBALANS & MARKING NUTS 14 Medicinal Plants / Herbs 13

Bulk Sales Bulk Sales Bulk Sales Bulk Sales Bulk Sales In value added form to User Industry and as well the bulk sales Bulk sales Bulk sales

VALUE ADDITION AND RETAIL MARKETING OF NTFP PROCESSING UNITS : GCC has so far established the following processing units to convert NTFP into READY TO USE PRODUCTS. Honey Processing Units Sheekakai, Soapnut and Amla Pulverizing Units Soap making Units Rajmah, White Beans and Cuttings Processing cum Packing Units Tamarind Processing & Packing Units Turmeric polishing & powdering Unit, Soya beans powdering & milk making Units Dry Chillies packing & powdering Unit (outsourcing) Coffee powdering and packing unit (outsourcing) Hill broom processing units Rajahmundry and Chittoor Rampachodavaram and Rajahmundry Vizianagaram and Araku Paderu V. Madugula, Chodavaram, Makavaram, Salur, S.Kota V.Madugula Utnoor Bhadrachalam Araku valley/Paderu Salur, Seethampeta

THE PRODUCT RANGE :

To capture full market potential for NTFP based value-added products, GCC has introduced a range of products under common brand name GIRIJAN in different pack sizes to consumers as detailed below. 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 Girijan Honey (Agmarkgrade) "Ritu" Aloe Vera Soaps Ritu Turmeric Soaps Ritu Neem Soaps Ritu Honey bathing bar Girijan Flower Tamarind (Agmark grade) Girijan Pulp Tamarind Girijan Deseeded Tamarind Girijan Seeded Tamarind Girijan Sheekakai powder Girijan Soapnuts Girijan Soapnut Powder Girijan Amla Powder Girijan Hill Brooms (Gr.I,&II) Girijan Rajmah (Red) Girijan Rajmah (White) Girijan Cuttings Girijan White Beans Girijan Dry Chillies "Girijan" Turmeric Powder "Girijan" Dry Chillies Powder Girijan Soya Beans 5kg / 1kg / 500 gms / 200gms / 50 gms / 20 gms 150 gms / 100 gms / 75 gms / 50 gms / 20 gms 100 gms / 75 gms / 50 gms 100 gms / 75 gms / 50 gms 75 grams 30 kg / 1 kg / 500 gms 1 kg 1kg 1 kg 100 /200 gms 1 kg 200 gms 200 gms 1 No 500 gms 500 gms 500 gms 500 gms 500 gms 100 /500 gms/ 1kg 200 / 500 gms & 1 Kg 200 gms

Distribution Network for Supply of 'Girijan' products to consumers:

As many as 200 distributors are functioning in all the major cities and towns in Andhra Pradesh who are catering to the needs of the consumers through 5 C & F Agents. IMPROVEMENT IN SALE There has been substantial increase in the sale of value added products year after year as shown hereunder. Sale turnover (Rs in Lakhs) 316.31 444.33

Sl.No. 1 2

Year 2001-02 2002-03

3 4 5 6 7 8. 9

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

581.73 774.62 842.03 1075.00 906.24 1226.35 1240.34

The following is the commodity-wise sale turned out during the year 2009-10 against the year 2008-09. S.No. 1 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Commodity 2 Honey bottles (Qtls) Tamarind (all vanities ) Sheekakai & its powder Soap nut ( its powder) ) Amla Powder Hill Brooms Toilet Soaps(Nos) Dry Chillies & Powder Turmeric Powder Coffee Powder Rajmah & Beans Soyabeans & its powder Others Total Sales during 2009-10 (Rs.in (Qtls) lakhs) 3 4 1875.07 330.15 7568.27 174.27 11.28 15.78 7.63 13.50 493.43 103.29 73.56 2.27 5.83 5.09 0.26 1240.34 Sales during 2008-09 (Qtls) 5 3576.00 11949.00 200.11 768.00 63.00 41153 766.91 401.00 0.43 235 179.25 (Rs.in lakhs) 6 619.84 206.74 10.97 16.04 4.60 5.78 262.06 54.05 25.29 0.06 8.69 3.31 8.92 1226.35

DIRECT SALES TO INSTITUTIONS: Supply of products is taken up directly to the following Institutions. .No. 1. Name of the Institution CSD canteens across the country Products supplied Honey bottles- 500 grams

2.

3. 4. 5.

TRIFED, New Delhi ( for their TRIBES INDIA Shops across the country) A.P. Tourism Corporation ( Haritha Tourist resorts) Central Prison, Visakhapatnam S.T, Welfare/ B.C. Welfare / Social Welfare/ Women welfare Hostels Visakhapatnam Port Trust

Aloe vera soaps- 150 grams Turmeric soaps- 100 grams Turmeric powder- 100 grams All products

Aloe vera soaps- 20 grams Deseeded Tamarind Deseeded Tamarind / Soya Powder & milk / Aloe vera, Turmeric & Neem Soaps Turmeric Soaps 100 grams

6.

Coverage of more Government Institutions Regular supplies are being made to the following temples. 1. Tirumala Tirupathi Tirupathi Devastanams, Flower Tamarind, Sheekakai powder, Hill brooms, Honey bottles Deseeded Tamarind Deseeded Tamarind Flower Tamarind Honey, Turmeric & Aloe vera soaps Honey, Aloe vera and Turmeric soaps

2. 3. 4. 5. 6.

Sri Varaha Lakshmi Narasimha swamy Devastanam, Simhachalam Kanaka Maha Lakshmi Devastanam, Visakhapatnam Nekkanti Anjaneya swamy Temple, Kasapuram (Anantapur district) Sri Raghavendraswamy Devastanam, Mantralayam (Kurnool district) Sri Maha Nandeeswara Swamy Devastanam, Mahanandi (Kurnool district)

7.

8. 9.

Sri Lakshmi Narasimha swamy Devastanam, Ahobilam (Kurnool district) Sri Mallikarjuaswamy Devastanam, Srisailam (Kurnool district) Sri Satyanarayana swamy Devastanam, Annavaram (East Godavari district)

Flower Tamarind

Flower Tamarind & Honey Pulp Tamarind, Honey and Turmeric powder

GCCS INITIATIVES TO ADD VALUE TO NTFP

Training Programs:

GCC has imparted training to tribals on scientific collection of NTFP by engaging training institutes and NGOs and invested about Rs. 40.00 lakhs on such training progrms in a span of 5 years. This has enabled GCC to make NTFP a more viable and Income Generating Program for the Tribals.

During 2007-08 also training was imparted to 7000 Gum pickers and 2000 Honey hunters with the financial assistance of TRIFED, New Delhi . Another 2000 tribals have been trained in the collection / processing of Medicinal plants under NMPB project during the year 2008-09.At present training to another batch of 2500 Gum Pickers is in progress.

Regeneration of NTFP species

GCC in coordination with KOVEL FOUNDATION has raised Gum Saplings and distributed to tribals as detailed below up to 2006-07

Sl. No. 1. 2. 3. 4.

Place of nursery R.Chodavaram (East Godavari Dist) Bhadrachalam (Khammam Dist) Kasipatnam (Visakhapatnam Dist.) Utnoor (Adilabad Dist) Total

No. of Gum Saplings 1500 600 500 15000 17600

In 2007-08, GCC in coordination with Kovel Foundation & ITDA organized raising of Gum Karaya Nurseries at Bangarampeta of Kasipatnam Society (20000), Tallapalem of R.Chodavaram Society 30000 and 20,000 saplings at Gokavaram and at Vummadivaram V.R.Puram Mandal of Khammam District (10000). The grown up saplings were distributed to the beneficiaries.

During 2008-09, 2,50,000 Gum Saplings were got raised by M/s. Roar Bio, Visakhapatnam for distribution to different divisions of GCC. So far 1, 10,000 saplings were sent to Seethampeta , Bhadrachalam and Visakhapatnam Divisions

Training to Field Functionaries

Training programs are conducted at Divisional level to the CCPAs and to Assistants (320 employees) to bring attitudinal change among them and to develop their accounting & business skills.

Two training programs were organized on online computing and accountancy to all the employees working as Accountants in different societies during the year 2007-08 to acquaint with online accounting system.

SUPPLY OF ESSENTIAL COMMODITIES AND OTHER DOMESTIC REQUIREMENTS TO TRIBALS: The strategy to improve "Other D.Rs. Sales"

i.

Establishing at least 100 Mini-Super Bazaars at Focal point villages / Mandal H.Qs. in the tribal areas to facilitate pick and choose facility to the consumers.

ii.

Supply of Cosmetics to Hostel boarders of all educational institutions located in tribal areas of Andhra Pradesh.

iii.

Introducing pulses and other requirements in sachets.

iv.

Organizing additional sale counters in shandies.

v.

Supplying other DR items like pulses, oils, chillies etc., required for Midday Meal Scheme to the schools situated in the interior tribal area.

vi.

Supplying required items other than food materials to T.W. Hostels/ Ashram schools as per approved indents of the ITDAs.

vii.

Distributing rice relating to Food for Work Programme to the beneficiaries through DR Depots.

viii.

Distributing LPG to women below the poverty line under Deepam Scheme.

DISTRIBUTION OF ESSENTIAL COMMODITIES THROUGH THE NETWORK OF DR DEPOTS The distribution of Essential commodities and sale of other daily requirements to the tribal consumers through the net work of D.R. Depots is a major activity of GCC. This activity is not simply a commercial but carries a greater social responsibility on the Corporation to effectively cater to the daily food needs of the tribal consumers through the distribution of Essential commodities on ration cards and supplying them other daily requirements at competitive and reasonable prices duly ensuring quality. This activity also helps controlling the prices in the tribal areas and curbing illegal activities of the private traders such as exploiting the tribal consumers with spurious and adulterated food and cosmetic items, charging exorbitant rates and under weighment, using unauthorized Weights and measures in the weekly shandies. The D.R. Depot of GCC is the nearest Government establishment for the common tribal to approach and seek help. GCC is having 839 D.R. Depots in agency areas of the State as detailed hereunder, of which 102 depots were since handed over to Woman Self Help Groups (WSHG) as per the directions of the Govt. of AP.

DIVISIONWISE NO. OF DEPOTS / SHG DEPOTS Sl. No. 1 GCC Depots 48 WSHG Depots 13 Total No. of DR Depots 61

Name of the Division Seethampeta

2 3 4 5 6 7 8 9 10

Parvathipuram Paderu Chintapalli Rampachodavaram Tirupathi Bhadrachalam Eturunagaram Srisailam Utnoor

64 106 62 121 3 147 70 29 87

12 16 15 23 5 2 2 12 2 102

76 122 77 144 8 149 72 41 89 839

Total 737 DIVISION WISE RATION CARDS POSITION

GCC is distributing Essential Commodities to 5, 27,135 tribal families through the net work of 839 DR Depots. The details of Division wise cards position is detailed below: No. of DR Depots 60 76 121 76 144 8 153 72 42 87 839 Cards White 11311 32938 79617 37504 58252 2954 80891 45471 9034 49890 407862 Pink 839 981 AAY 15227 9346 20118 12458 20148 10505 4326 4323 6794 103245 Annapurna 74 73 261 3 125 381 95 3 1015 Total 27451 43338 99996 49965 78525 3368 103173 49892 13588 57839 527135

Sl. No. 1 2 3 4 5 6 7 8 9 10

Name of the Division Seethampeta Parvathipuram Paderu Chintapalli R'Chodavaram Tirupathi Bhadrachalam Eturunagaram Srisailam Utnoor TOTAL

414 11396 231 1152 15013

Monthly average supply of PDS items

GCC is supplying 209731.56 Qtls. of PDS Rice, 22730.26 Qtls. of Hostel Rice TE Hostels/ Ashram Schools, 8775 Qtls. of Sugar and 3235 Kilo Ltrs. Of K Oil through its net work of DR Depots. The division wise monthly average of the items is as shown below: (Qty. in Qtls. & Ltrs.)

Sl. No. 1 2 3 4 5 6 7 8 9 10

Name of the Division Seethampeta Parvathipuram Paderu Chintapalli R. Chodavaram Tirupathi Bhadrachalam Eturunagaram Srisailam Utnoor TOTAL

PDS Rice 2918.06 4786.73 12144.92 5206.35 7722.89 459.00 11385.03 5983.51 1309.73 98507.00 150423.2 2

AAY Rice 2598.25 3200.04 7022.80 4363.45 6827.40 83.00 3680.60 1832.75 1508.05 28192.00 59308.34

Annapurna 423.20 0.00 26.10 30.00 12.50 39.60

Hostel Rice 2680.00 1690.00 3621.77 1179.60 3830.00 5790.00 2643.05 976.77 319.07 22730.26

Sugar

Kerosene

269.70 361.65 544.48 365.66 744.79 33.00 876.29 448.50 111.85 5019.00 8774.92

69400 102184 237650 128722 233837 12000 217004 107861 29764 2096900 3235322

531.40

Mandal Level Stockiest (MLS) Points

For effective distribution of ECs through DR Depots/ fair price shops, GCC has taken up storage and distribution of ECs at 29 MLS points in 9 tribal districts at the following places: Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Place of MLS Point Seethampeta Pathapatnam G.L.Puram Kurupam Saluru Paderu G.Madugula Araku Kasipatnam Pedabayalu Munchingput Chintapalli G.K.Veedhi K.D.Peta R. Chodavaram Sl. No. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Place of MLS Point Addateegala Yeleswaram Maredumilli K.R.Puram Eturunagaram Mahadevpur Palwancha Aswapuram Dammapeta Yellandu Kukunoor Chintoor Bhadrachalam Venkatapuram

Efforts to make DR Depots self supporting and improvement in other DRs Sales.

There is continuous improvement in sales of other DRs during the last six years as shown hereunder: (Rs. in Lakhs) ACTIVITY Other DRs Sales 2003-04 4250.20 2004-05 4973.53 2005-06 8038.12 2006-07 9296.16 2007-08 9128.91 2008-09 10499.36 2009-10 11714.49

Distribution of LPG

For effective services while improving sale turnover, since 2000-01, GCC has taken up the storage and distribution of LPG at 10 potential places as detailed below. GCC is issuing gas connections and selling refills to tribal consumers, beneficiaries under DEEPAM scheme, DWCRA, TW Hostel/ Ashram School in the area. Sl. No. 1 2 3 4 5 6 7 8 9 10 Society G.L.Puram Mahadevpur Pedabayalu Chintapalli Eturunagaram R.Chodavaram Addateegala K.R.Puram Manuguru S.K.Nagar (Bejjur)

Supplies to TW Hostels/ Ashram Schools In addition to the normal sale of ECs and other DRs items to the tribal consumers, GCC is making credit supply of Rice and other food provisions required to the tribal inmates residing in 880 TW Hostels/ Ashram Schools and other educational Institutions functioning in the agency area as detailed below:
INSTITUTIONS SERVED BY GCC SL. NO. I 1 2 3 4 5 6 7 8 9 10 DISTRICT ASHRAM SCHOOLS HOSTELS KGBV MINI GURUKULAM RESIDENTIAL SCHOOLS TOTAL

ITDA Areas Srikakulam Vizianagaram Visakhapatnam East Godavari West Godavari Khammam Srisailam Warangal Adilabad Nellore

41 46 102 59 39 74 34 41 112 1

9 12 13 19 18 45 40 12 24

1 2 2

2 1 3

4 5 5

3 4 4 1

4 6 11 7 3 10 7 8 4

57 67 131 85 60 136 34 97 141 30

Total

549

192

19

18

60

838

II 1 2 3

Non-ITDA Areas Chittoor Kurnool Mahaboobnagar Total

5 5 554

2 7 20 29 221 19

1 3 4 22

4 4 64

2 8 32 42 880

Grand Total Diesel / Petrol Bunk

GCC is operating one Diesel/Petrol Bunk at Rampa Chodavaram in East Godavari Dist. to meet the fuel demand to the Govt. as well as private vehicles plying in the agency area.

Since the public response on the above Diesel/Petrol Bunk is much encouraging it is proposed to install two more bunks one at Gumma (v) in Vizianagarm Dist. and another at Domalapenta in Kurnool Dist. Turnover for the last 4 years The following are the particulars of DRs Sales conducted during the last 4 years: (Rs. in lakhs) Sl. No. 1 2 3 4 ACTIVITY Essential Commodities - Cash Sales Essential Commodities - Credit Sales Other DRs. - Cash sales Other DRs. - Credit sales TOTAL 2006-07 6365.00 1052.11 5803.49 3568.60 16789.20 ACHIEVEMENT 2007-08 2008-09 6772.35 4856.55 1111.00 1077.93 4924.87 4727.67 4204.04 5771.69 17012.26 16433.84 (Rs.in lakhs) 4744.00 1114.00 10037.00 6605.00 22500.00 2009-10 4599.10 1077.42 5497.90 6216.59 17391.01

Targets fixed for the year 2010-11 1 Essential commodities- Cash sales 2 Essential commodities- Credit sales 3 Other DRs. - Cash sales 4 Other DRs. - Credit sales Total CREDIT ACTIVITY

GCC is acting as a lending institution in the tribal areas as far as credit to the tribal members for their agricultural operations is concerned. This activity was grounded by GCC during 1990-91 in 15 districts of Andhra Pradesh through its 43 affiliated societies.

The objective of GCC in this direction is to discourage private moneyl enders and provide loans at low rate of interest and facilitate the tribals to repay the loans both in cash or in kind.
Statement showing the year-wise disbursement and recovery of credit from 1999-2000 to 2009-2010: (Rs. in lakhs)

Total Sl. No. Year Disbursement 1 2 3 4 5 6 7 8 9 10 11 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 493.93 502.45 322.88 268.56 260.42 355.66 347.70 343.42 374.34 249.57 159.45 Recovery 198.58 443.19 399.54 265.72 321.10 343.48 329.54 394.44 1743.26 1684.68 125.68

1.

During the year 2007-08, GCC received an amount of Rs.1365.01 lakhs from Government of India under prime Ministers Relief Package towards reimbursement of Interest on loan accounts of 24 GPCM Societies in selected districts of AP

2.

During the year 2008-09, GCC claimed an amount of Rs.1603.95 under

Agricultural

Debt Waiver and Debt Relief Scheme -2008 ( ADWDRS- 2008) of Government of India for all outstanding loans issued between 1997-98 to Khariff 2007 and which were

overdue as on 31.12.07 and remained unpaid as on 29.02.2008 which includes both principal and interest. Out of this claim, an amount of Rs.1510.99 lakhs was received by GCC through APCOB as on 10.10.09 leaving a balance of Rs.92.96 lakhs.

3.

During the year 2008-09, GCC submitted claims to APCOB, Hyderabad for reimbursement of an amount of Rs.62.12 lakhs being the loss of interest by GPCM Societies on the waiver amount w.e.f. 1.03.2008 under ADWDR Scheme 2008.

4.

During the year 2008-09, GCC submitted claims to APCOB for reimbursement of an amount of Rs.4.72 lakhs being the interest in excess of principal, penal interest etc., under ADWDR Scheme 2008

5.

GCC has also submitted proposals to the Government / NABARD to extend the benefits under the Credit Revival package of G.O.I to the GPCM Societies of GCC also on par with the PACs. The same is under active consideration of the NABARD. The matter is being closely pursued.

FINANCIAL PERFORMANCE The GCC turnover for the last 9 years is given below: (Rs. in Lakhs)

Sl. No. 01 02 03 04 05 06 07 08 09

Year 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

Target 10000.00 11000.00 11000.00 13000.00 25000.00 22800.00 23452.00 20000.00 23505.00

Achievements 11074.06 11005.96 12687.63 15986.15 19419.53 21086.23 20412.70 20981.88 20011.01

RETAIL MARKETING DEPARTMENT ISSUE PRICE TO DISTRIBUTORS & RETAILERS w.e.f. 01.11.2010 Issue Price to C&F Agents 4 175.00 100.00 48.75 17.00 7.50 21.60 36.00 38.00 00.00 40.50 00.00 33.00 33.00 17.00 24.00 9.50 16.80 40.00 43.00 8.50 17.00 17.00 33.00 80.00 10.30 7.90 11.30 8.80 17.70 10.80 8.40 5.90 2.80 15.70 9.80 Issue Price to Retailer s 6 217.52 124.30 60.59 21.13 9.32 26.90 38.50 00.00 00.00 00.00 00.00 38.20 38.00 21.00 27.50 11.50 19.00 46.00 49.50 10.50 20.00 21.50 38.50 96.00 12.80 9.75 14.10 11.00 22.05 13.30 10.25 7.35 3.40 19.75 12.00

Sl. No. 1 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 29 30 31 32 33 34 35 36

Name of the Product 2 HONEY HONEY Honey A Grade HONEY HONEY HONEY Ritu Aloevera Soap Deseeded Tamarind Pulp Tamarind Pulp Tamarind Flower Tamarind Flower Tamarind RAJMAH RED RAJMAH WHITE WHITE BEANS KATTINGS SOYABEANS Soyabean Powder Dry Chillies Chilli Powder Chilli Powder Chilli Powder Turmeric Powder Turmeric Powder Turmeric Powder Ritu Neem Soaps Ritu Neem Soaps Ritu Turmeric Soaps Ritu Turmeric Soaps Ritu Aloever Soap Ritu Aloever Soap Ritu Aloever Soap Ritu Aloever Soap Ritu Aloever Soap Sheekai Powder Sheekai Powder

Pack Size 3 5 Kgs. 1 kg. 500 Gms 200 Gms 50 Gms 20 Gms 150 Gms 1 Kg 1 KG 500 Gms 1 Kg. 500 Gms 500 Gms 500 Gms 500 Gms 500 Gms 200 Gms 200 Gms 500 Gms 500 Gms 100 Gms 200 Gms 100 Gms 200 Gms 500 Gms 100 Gms 75 Gms 100 Gms 75 Gms 125 Gms 100 Gms 75 Gms 50 Gms 20 Gms 200 Gms 100 Gms

Issue Price to Distributors 5 197.75 113.00 55.08 19.21 8.47 24.55 37.50 00.00 00.00 00.00 00.00 36.00 36.00 19.00 26.00 10.50 18.00 43.00 46.50 9.50 18.50 19.50 36.00 88.00 11.70 8.90 12.85 10.05 20.10 12.20 9.40 6.70 3.15 17.85 11.05

M.R.P. 7 255.00 145.00 72.00 25.00 11.00 30.50 40.00 00.00 00.00 00.00 00.00 43.00 43.00 23.00 31.00 12.50 21.50 50.00 55.50 12.00 22.50 25.00 43.00 105.00 14.50 11.00 16.00 12.50 25.00 15.00 11.50 8.30 3.85 22.50 13.50

37 38 39 40 41 42 43 44 45 46 47 48 50 51

Soapnut Powder Soapnut Powder AMLA POWDER AMLA POWDER Sheekai Pods Sheekai Pods Soap Nuts(Akkaram) Soapnuts (Forest) Soapnut Pulp Akkara Soapnut Pulp(Forest) Hill Brooms Coffee Powder Coffee Powder Honey Soap

200 Gms 100 Gms 200 Gms 100 Gms 500 Gms 1000 Gms 1000 Gms 1000 Gms 500 Gms 500 Gms. Grade-1 250 Gms. 100 Gms. 75 Gms.

17.40 10.30 14.20 7.90 6.50 12.00 22.50 14.20 25.00 19.60 26.50 38.00 14.00 18.00

19.75 11.70 16.30 8.90 00.00 00.00 24.50 16.15 28.70 22.40 30.35

21.65 12.80 17.95 9.75 00.00 00.00 26.50 17.65 31.55 24.60 33.35

24.50 14.50 20.50 11.00 10.00 20.00 30.00 20.00 36.00 28.00 38.00 43.00 18.00 25.00

CHAPTER-III
THEORETICAL FRAMEWORK OF THE STUDY Theoretical Background of the study

THEORETICAL FRAME WORK OF THE STUDY THE CONCEPT OF THE VARIANCE ANALYSIS Meaning: The term Variance means derivation, difference and so on. The variance in accordance standard costing is meant as the difference/ deviation in between two different costs standard cost and comparable actual cost incurred during the period. The variance of the specific element of the cost should be periodically checked. The variance is classified into two categories.

Variance

Favorable Variance

Standard Cost > Actual Cost

Un favorable / Adverse Variance Actual cost> Standard Cost

Planned costs are greater than the incurred actual cost during the period.

Planned costs are less than the actual costs incurred during the period.

Actual cost is well within the anticipating cost- cost effectiveness

Actual cost incurred is more than the anticipating cost ineffective

The variance can be classified into two categories, based on controllability viz controllable and uncontrollable variance.

Variance

Controllable Variance The difference in between standard cost and actual cost, which can be controlled Excessive use of raw materials by foremen

Uncontrollable variance The difference in between standard cost and actual cost cannot be4 controlled Price increase

Increased Demand

Decreased Supply

Defective supply of raw materials

Wrong ascertainment of cost No one is specifically responsible for price increase

Responsibility of purchase department

Responsibility of cost Accounting Dept.

The purpose of standard costing is to correct the variance, which is in between standard cost and actual cost.

CLASSIFICATION OF VARIANCES There are two types of variance viz. Cost Variance and Revenue Variance. Cost Variance: Cost variance can be further classified into three categories: a. Material Cost Variance b. Labour Cost Variance c. Over Head Variance. Revenue Variance: From the above classified types, Let us discuss every variance in detail in the remaining chapter.

Material Variances
Material Cost Variance (MCV) The name of the variance is self explanatory, means that the difference in between the standard cost of material and Actual cost of material. The material cost variance is in between the standard material cost for actual production in units and actual cost. Material cost variance can be computed into two different ways: Direct Method In directed Method.

Direct method It is a method simply studies the deviation in between the two different cost of materials without giving any emphasis for other factors of influence viz. the quantity of materials and price of a material. Under the direct method, the comparison is in between the standard cost of material which is the planned cost of material before commencement, scientifically developed by considering the all other factors of influence and the actual cost of materials, which is actually incurred during the production. Why standard cost is to be tuned to the level of actual cost? The main aim of computing the standard cost for actual output is that the standard cost developed is not to the tune of actual production in units, instead it is available in terms of

per unit of a product / for overall production e.g. for a year. To have leveled comparison in between the standard cost has to be designed to the tune of actual cost. Material cost variance = Standard cost of material for actual output Actual cost of raw materials. = (SQAOX SP) (AQXAP) Indirect Method It is a method which computes the material cost variance by considering two important variances viz., material price variance and material usage variance. Under this method material cost variance is calculated through the summation of the variance viz., price and usage of materials. Material price variance It is very simple to understand that the name of the variance is self- explanatory in explaining the meaning of the variance. It is a variance in between two different prices viz., the standard price and actual price of Raw materials. The difference should be expressed only in terms of the actual usage of materials. The ultimate of aim of expressing this variance in the lights of actual usage of materials is to identify the deviation of the price changes in line with the purchase of raw materials. Material price variance = (SA AP) AQ. Material usage or quantity variance The variance / deviation is in between the standard quantity of materials and the actual quantity of material consumed. The found variance in Kg of raw materials should be expressed in monetary values i.e. in terms of rupees, through the multiplication with the standard price is the price, which is totally free from market fluctuation i.e. supply and demand factors of the market. Usage variance = Standard price X. Material mix variance This kind of variance arises only due to the mixture of various raw materials to produce and to get an output. Normally the process of production involves more than two materials to get the output. For e.g. the firm mixes the raw materials of A & B at the ratio of the mixture is called Material Mix.

The above mentioned ratio is being changed by the firm fro actual production in producing a unit of product .

The change in the material mix due to various reasons, those are following: In adequate supply of raw materials. Price factor of a material Introduction of a new system of production due to expansion. Substitution of a material due better quality and chapter price than the exciting material in current system of procurement. Material Mix Variance = Standard price (Revised Standard Quality Actual Quantity) from the early discussions, it is clearly understood that the revised standard mix of materials will be the same only during the moment at which the total actual and standard quantity of materials are equivalent to each other and vice versa.

Material Sub-usage Variance This is the variance in between standard quantity and revised standard quantity of materials denominated in terms of standard price. The purpose of studying the difference in be these two is to analysis the amount of deviation of the standard against the revised standard in line with he actual fluctuation in the quantity of materials consumption during the production process. It is the only variance highlights the difference in between the early set standard and the redesigned standard in terms of actual quantity of materials for meaningful comparison. Material Sub usage variance = Standard cost per unit (standard quantity revised Standard Quantity).

Material yield Variance It is one of the components of the material usage variance which arises only due to the deviation in between the standard yield determined and actual yield accrued. This variance highlights either the abnormal loss of material or saving of materials. This variance plays most important role in the process industries, to assess the loss/ wastage of materials. If the actual loss of materials is different from the standard loss of materials will result the variance in two different situations.

When the standard and actual do not differ from each other In this case, the yield variance is calculated as follows: Yield Variance = Standard Rate/cost per unit (actual yield Standard Yield) Standard rate has to be calculated from the following. Standard cost of standard Mix Standard Rate = Net Standard Output (Gross Standard Output Standard loss) LABOUR VARIANCE Labour Variance is known in other words as Labour Cost Variance. The cost of the Labour is usually denominated by the wages paid/incurred during the production. Labour Variance Analysis, is studying the deviation in between the actual cost of the labour incurred and standard / budgeted cost of the labour this is another most important cost variance, next to material cost variance, which consider the rate of the wage per hour for the computation of the total standard cost of labour and actual cost of labour like price of the materials per kg.

Labour cost variance Labour cost variance is the tool studies the deviation in between the total standard cost of the labour and actual cost of labour. The actual labour cost may vary.

Causes for the variances The hourly rate of the labour may vary due to demand and supply of the labour forces The hourly rate of the labour may vary due to nature of the labour required i.e. Skilled/Semi-Skilled/ Unskilled. The rate differs from on category to another due to efficiency of the labours. The labour cost variance is in relevance with the time component of the job. The time required to complete the job may vary due to too many reasons; more specially time wastage results in the production.

The following is the structure of the labour cost variance, which will illustrate the various components of the labour variance.

Labour Cost Variance

Labour Rate variance

Labour Efficiency Variance

Labour Mix Variance

Labour Idle Time Variance

Labour Yield Variance

Labour Cost Variance = Standard Cost of the Labour - Actual Cost of Labour Standard Cost of the Labour = Standard Hours fro Actual Output x Standard Hour Wage Rate Actual Cost of the labour = Actual Hours taken for production x Actual Hour Wage rate. Labour Rate or Wage rate variance: This is the variance, resultant, due to the change in the wage rate. The labour rate variance is the difference between standard wage rates, which already determined in terms of the actual hours of production.

The Cause of labour wage rate or pay variance

It is due to changes occurred in the structure of basic wages The ratio of the labour mix is varied due to the nature of the order. Undertaken by the firm to meet the needs of the consumers. The special care in the design of an ornament than the regular or routine design. This leads to involvement of more amount of skilled labour, which finally escalates/increases the cost of the labour.

To fulfill the immediate and excessive orders of the consumers which are to be supplied to their requirement leads to greater payment of wages through overtime charges; which is normally greater than the regular wage rate.

This variance mainly occur in the industry, which is connected with seasonal

business,

This variance mainly plays pivotal role in the industries of soft drinks, fans, refrigerator, fertilizers, crackers and so on.

The labour Efficiency Variance The efficiency of the labour is determined only in actual hours for actual output, which should be less than the standard hours expected to perform during the job. The labour efficiency variance is the deviation in between two standard hours for actual output and actual hours taken for actual output. The expression of variance in terms of hours should be expressed in terms of wage rate i.e. standard wage rate.

Why the expression should be in the standard wage rate? The aim of expressing efficiency variance in terms of standard wage is to express them in monetary units and should be free from the demand and supply forces of the force which directly has an impact on the basic labour wage rate. Labour efficiency variance = Standard rate (Standard hours for actual output actual hours for actual output).

What are causes of this variance? Due to poor working conditions, the efficiency of the working force to complete the job is coming down. Quality of maintenance of the machinery is facilitating the working force to maintain the efficiency. Frequent change in the quality of materials may lead change in the hours required to complete the work. Poor personal relations of the workers.

Idle Time variance What is Idle time? The wage which are paid for unproductive hours to the laborers are known as idle time. The idle time may be classified into two categories. Normal idle time Abnormal idle time.

Labour Mix-Variance This variance arises due to deviation in between the actual mixture of labour force for the job and standard mixture of labour force planned to complete the job. The mixture of work force is considered to be most important for completion. Normally, the mixture is in tri colours viz., skilled, Semi-Skilled and Unskilled. The standard are prepared by considering the requirement of the job to be completed. For completing the Jog, 5 skilled, 3 semi-skilled, and 2 unskilled employees are required. Due to non availability of skilled labour force, the firm is required to carry out the operations without any lacuna through the induction of more semiskilled labour force. The actual composition of he labour force is 2 skilled, 6semi skilled 2 unskilled which finally led to labour mix variance.

Reasons for the labour mix variance Absenteeism

Labour turnover Non- availability of required labour force from the business environment. The above critical factors directly influence the efficiency of he labour force.

Labour Mix Variance = Standard Rate (Revised Standard hour Actual Hours)

Labour sub-efficiency variance It is one of the component of the labour efficiency variance. Labour Sub Efficiency variance = Standard rate ( Standard Hours for Actual Output Revised standard hours)

Labour yield variance It is considered to be as one of the components of labour efficiency variance. This is a variance in between two different outputs of the enterprise viz., standard output for actual hours and actual output. This is a variance facilitates to study the deviation in between two different levels i.e. how many numbers of outputs would be produced during the actual hours and how many numbers of actual outputs were produced during the actual hours. Labour yield variance = standard cost per unit (actual output Standard output in actual hours) OR = Standard cost per unit (actual yield in units Standard yield in actual hours.

OVER HEAD VARIANCES Over Head variance

Variable Overhead Variance

Fixed Overhead Variance

Variable Overhead Expenditure Variance

Variable Overhead Efficiency Variance

Calendar Variance

Capacity Variance

Efficiency Variance

Variable overhead cost variance It is the variance or deviation in between the standard variable overhead for actual production of units and actual overhead incurred. = Standard variable overhead rat per unit x Actual Output Actual variable overheads incurred

Variable overhead expenditure variance This is the variance in between the two different rates of variable overheads viz standard rate and actual rate; denominated in terms of actual hours taken consumed by the firm. = Actual Hours (Standard Rate (Standard Rate Actual Rate)

Variable overhead efficiency variance It is another variance in between the two different rates of variable overhead viz standard tare and another actual rate; denominated in terms of actual hours taken consumed by the firm. = Standard Rate (Standard hours for actual hours Actual Hours)

Fixed overhead cost variance The most important variance is overhead cost variance = Standard overhead cost for actual output Actual overhead The second important variance is Budgeted or Expenditure variance. = Budgeted overhead Actual Rate.

SALES VARIANCE Sales variance is the only component accompanied the profit volume variance of the business transaction. The sales variance are computed and analyzed in order to study the effect of sales value and facilitates the sales manager to easily understand the various sales efforts taken by the team. The sales variance can be classified in various categories. They are as follows.

Sales Variance

Sales Value Variance

Sales Price Variance

Sales Volume Variance

Sales Mix variance

Sales Sub Usage Variance

Sales Values Variance The name of the variance is self explanatory in explaining the meaning of the variance, that is difference in between the actual value of sales and standard value of sales. The causes / influences of sales value variance are many more and some of them highlighted for easy understanding about overall picture.

The fluctuation in the selling price may led to variance with the standard selling priceSelling Price Variance. The fluctuation in the actual volume of sales may be due to various factors, mainly the preference of the buyers over the standard / budgeted volume of sales Sales Volume Variance.

Actual mix of variance varieties may differ from the standard mix, which leads - Sales mix variance. Revised standard sales quantity may be varied from the budgeted sales quantity Sales quantity / sub usage variance.

Sales value variance = Actual value of sales standard value of sales. The decision criterion is that more the actual sales volume leads to greater and better the position of firm than the budgeted sales volume, which leads to favorable position for the firm and vice versa.

Sales Price Variance It is one of the components as well as influence of the sales variance. It is the variance in between two different prices viz actual price and standard price of the products. The variance can be computed as follows. Sales Price Variance = Actual quantity sold ( Actual Price Standard Price) The price variance should be finally expressed in terms of the actual number of goods sold. The main aim of expressing them ii actual quantity of goods sold is to express the variance in terms of actual performance in units.

The price variance may due to many reasons The price variance may be due to changes taken place in the structure of competition. The nature of competition changes due to market potentional for e.g. monopoly to duopoly; duopoly to perfect competition and so on; leads to change in the structure of pricing in order to retain the consumer base in line with the business. The price variance may be due to two courses of action, which are as follows.

Cost effectiveness strategy and Distinctiveness Strategy. Sales Volume Variance It is on of the elements of sales variance, which is in between the actual sales quantity and budgeted sales quantity. The variance is normally expressed in terms of price i.e. standard price. The purpose of expressing the variance in terms of standard price is that which is free from market forces.

Sales volume variance

= Standard Price ( actual quantity of sale Standard quantity of sales) The sales volume variance can be divided into two different streams that sales mix variance and sales quantity variance/ sub usage variance.

a) Sales mix Variance It is the difference between the actual sales and standard sales mix. This variance will arise only due to change in the proportion of goods sold. This is a most important variance usually computed, / calculated, at the moment, the firm which deals more than one commodity. If both, the standard and actual mix is are equivalent to each other, there will not be any mix variance is expressed in between two different quantities and finally should be denominated in terms of standard price is the price which is totally free from the demand and supply forces of the market. Sales mix variance+ standard price (actual Quantity Revised standard Quantity) b) sale sub-usage variance It is another component of usage variance, which expresses the deviation in between the revised standard quantity to the tune of actual quantities sold and the early set standard quantities expected to sell. This variance also elucidates the differences of the above mentioned only in terms of standard price, which is the ideal indicator free from the market forced i.e free from fluctuation. Sale sub-usage variance+ standard price (Revised standard Quantity - standard Quantity).

The objective of this article is to help you to understand

The purpose of variances

The steps in the process of variance analysis The potential causes of variances The interrelationships between variances.

Purpose of variances
There are very few plans that turn out exactly as planned. Even when the overall objectives of the plan are achieved, some, if not all components of the performance will have varied from the sub-plans or standards that make up the overall picture. For example, a football team may win an important game, as planned, but within the team performance there may be many aspects that the manager will analyse during and after the match so that performance can be improved for next time. As in business, good points need to be encouraged, less positive aspects need to be discussed and corrected. In a game of football, a side may have won a high number of corner kicks, but conceded too many free-kicks in defending. There is little to be gained for the next match if we do not think about the last performance in detail. Variance analysis provides a framework for business managers to breakdown the overall performance of an organization, so that each individual element of the business can be isolated and analyzed in turn.

The process of variance analysis

Budgets A budget is a plan expressed in financial terms that helps an organization to realize its objectives. There is little point to planning if the plan is not regularly compared with actual performance, so that corrective action can be taken to keep the whole plan on target.

Standards Where tasks are repetitive and easy to define, more common in manufacturing, quantitative standards of performance can be set for individual activities. It is then possible to

measure performance in great detail. The budget will be based on standard times for labour and quantities for materials.

Flexible budget In budget setting many assumptions and estimates will have to be made. Often the principal assumption is the level of activity. This is usually dependent on sales demand, and therefore, beyond the direct control of the firm. It is very rare that the actual level of activity is equal to the budgeted level. Therefore, in order to make the actual results comparable with the budget we need to adjust the budget for the period. This is done on the basis of what the budget would have been, if we had known exactly what the activity level would actually be.

Potential causes of variances

It is not usually the job of accountants to investigate variances directly, but they should be able to suggest potential causes before presenting the information to management. In the example above, the price of materials per kilo has risen, indicating inflationary pressures or perhaps a change in specification. Usage has been reduced, suggesting that higher grade materials were purchased that result in less wastage. It could be that as the price rose there was a greater effort to use materials more economically. If there are no repercussions in terms of final quality, management might want to know why such action was not taken before! The lower usage factor might only be a temporary factor, a function say of weather conditions (temperature, humidity, etc.). It may be sensible to monitor the situation in the next period before taking action. Variance control charts will be useful in this respect, particularly if there are seasonal variations involved. The labour efficiency variance indicates that a saving of 10 hours was made totaling 30. In isolation, it is difficult to suggest any reasons for this, other than better management or improvements in skills/speed of workers. The scale of the saving is small compared to the standard hours of 360, however this does not mean that we would not monitor the situation closely in the future. It may be, that the standard time was set before a reasonable number of units had been made, or there have been subsequent changes in production methods. It could be that the saving in time will result in poor quality problems later.

The saving in fixed overheads reflects either a genuine reduction in expense, (economy or better purchasing) or it could indicate that a 'soft' budget was set.

Interrelationships between variances

So far, we have examined each variance in turn. Often though, circumstances in one area will have implications in other areas. In this simple example, the reduced usage of materials and the saving in labour time may be related, suggesting that time is saved if higher grade materials are purchased. If the saving in materials was simply prompted by a price rise then we might expect that labour time would increase as a result of trying to use materials more carefully.

In project management
Variance analysis plays a major role for the critical success factor for any project. It allows for corrective actions to be taken in the event of schedule slippages or cost overruns for any activity under consideration. As well as it allows to take preventive actions to be taken so that no slippage of schedule cost overrun for may happen for any activity under consideration. Corrective and preventive actions allows for the identification of causes involved in schedule slippages as well as cost overruns. Variances are deviations from plan. Think of variance as the difference between what was planned and what actually occurred. There are two types of variances 1) Positive variance 2) Negative variance

Positive variance Positive variances are deviations from plan that indicates that an ahead of schedule situation has occurred or that an actual cost was less than a planned cost. This type of variance is good news to the project manager , who would rather hear that the project is ahead of schedule or under budget.Positive variances bring their own set of problems, which can be serious as negative variances.

Positive variance can allow rescheduling to bring the project to completion early, under budget, or both. Resources can be allocated from ahead of schedule projects to behind schedule projects. Positive variance can also result from schedule slippage, consider budget. being under budget means that not all dollars were expended, which may be the direct result of not having completed work that was scheduled for during the report project.

In the other hand, if the ahead of schedule situation is the result of the project teams finding a better way or a shortcut to completing work, the project manager will be pleased.

This situation may be short lived benefit, however. Getting ahead of schedule is great, but staying ahead of schedule presents another kind of problem. To stay ahead of schedule, the project manager will have to negotiate changes to the resource schedule. In the final analysis, being ahead of schedule may be a myth.

Negative variance Negative variances are deviation from plan that indicates behind schedule situation has occurred or that an actual cost was greater than a planned cost. Being behind schedule or over budget is not what the project manager or his reporting manager wants to hear. Negative variances just like positive variances, are not necessarily bad news. For example, you might have overspent because you accomplished more work during the report period than was planned. But in over spending during this period, you could have accomplished the work at less cost than was originally planned. You cant tell by looking at the variance report. In most cases, negative time variances affect project completion only if they are associated with critical path activities or if the schedule slippage on non critical path activities exceeds the activitys total float.

 Variances use up the float time for that activity, more serious once will cause a change in the critical path. Negative cost variances can result from uncontrollable factors such as cost increases from suppliers or unexpected equipment malfunctions. Some negative variances can result from inefficiencies or error.

CHAPTER-IV
DATA ANALYSIS & INTERPRETATION

VARIANCE ANALYSIS
COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED MARCH 2006 LIABILITES
PARTICULAR OF LIABILITES a. Members share capital b. govt shares capital 2 Deposits&Borrowings a. deposits b. borrowings 3 Grants and subsides a. capital & IFAD grants b.Revenue grants c. other grants 4 Adj. Heads"Due-by" 5 Sundry creditors 6 Interest payable 7 Other Expenditure payable 8 Reserve funds 9 Coop Eduction funds 10 Undisburesed profit Other Reserve and funds out 11 of profit 12 Other Reserve and funds 13 other liabilities 14 Reserve Defecit Recoverable Total Diff b/w Assets &Liabilities Total 177175741.49 1819913.47 1000.00 493118324.82 6233408.47 137916058.85 389475285.15 11357804.90 2101458.00 2473664.12 12577704.63 220426841.75 65685948.52 15581446.65 177175741.49 1819913.47 1000.00 478480830.72 6107752.32 106528405.50 391717315.00 11357804.90 1601458.00 2473664.12 12577704.63 191023802.25 65730709.27 8648039.08 29403039.05 -44760.75 15.39 - 0.07 14637494.01 125656.15 31387653.03 -2242029.09 500000.00 31.22 3.06 2.06 29.46 - 0.59 1451504. 57 353291356 . 42 1451504.57 371638043.85 -18346687.04 - 4.94 Balances as on 31/03/2006 4662662.60 201153548.94 Balances as on 31/03/2005 4662662.60 201153548.94

S.No

Variance of inc/dec
-

% of inc/dec
-

1 Share capital

6933407.57 10.55 62343773.00 22684298.04 39662474.00 3.06 16.59 2.09

2096503673.65 2034159900.71 159401063.05 136719764.65

1937102610.60 1897440136.06

ASSETS
Balance as on Balance as on Variance of S.NO Particulars Of Assets 31-03-2006 31-03-2005 inc/dec 1 CASH BALANCE a. Cash on Hand 847089.76 736557.07 110532.64 b. Cash at Bank 60452520.08 75313125.55 -14860605.47 c. Funds - in - Transit 6983495.72 3017186.60 3966309.12 d.Public Deposit Account 7500.00 7500.00 2 INVESTEMENTS a. Reserve fund in CCB 671290.00 624456.00 46834.00 b. Shares in other Institutions 15581200.00 15581200.00 c. Deposits in other Institutions 103636446.92 104095189.76 -458742.08 3 Loans and Advances a. Primareis and Individuals 391979941.80 367323326.99 24656614.09 b. Adj Heads "Due -to" 475085413.48 451428426.33 23656987.01 c. Sundry Debtors 113467820.65 107170046.39 6297774.03 d.Fixed and other Assets 118030158.30 114767397.89 3262760.05 e. Other Items of Assets 90682810.95 111704473.09 -21021662.05 f. Stock on Hand 156042543.95 154999393.06 1043150.09 OTHER OUTSTANDING 4 ASSETS a. Grannts and Subsidies 357018265.75 357018265.75 b. Misc Income 617131.41 617131.41 Deficits Recoverable 5 - Stocks 15581446.95 8648039.08 6933407.87 INTEREST 6 RECEIVABLE a. Not over due Interest 1971114.00 1324295.54 646818.46 b. Overdue Interest 28375760.88 21314711.10 7061049.78 Unsecured Loans to 7 GPCMS(DRS) 70660.00 1756915.00 -1686255.00 Total 1937102610.60 1897440136.60 39662474.00 % of inc/dec 15.00 -19.73 131.46 0

7.50 -0.44

6.71 5.24 5.88 2.84 -18.82 0.67

80.17

48.84 33.13 -95.98 2.09

Graph-I
1,950,000,000.00 1,940,000,000.00 1,930,000,000.00 1,920,000,000.00 1,910,000,000.00 1,900,000,000.00 1,890,000,000.00 1,880,000,000.00 1,870,000,000.00 2005 2006 assets liabilities

Interpretation:-

From the above analysis of comparative balance sheet statement for the Year ended 2006 it was observed that there is increase in the total assets and liabilities by 2.09 % From 2005 to 2006 i.e. from Rs.39, 662,474.00

COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED MARCH 2007 LIABILITIES
Balances as on 31/03/2007 Balances as on 31/03/2006

S.No 1

4 5 6 7 8 9 10 11 12 13 14

PARTICULAR OF LIABILITES Share capital a. Members share capital b. govt shares capital Deposits&Borrowings a. deposits b. borrowings Grants and subsides a. capital & IFAD grants b.Revenue grants c. other grants Adj. Heads"Due-by" Sundry creditors Interest payable Other Expenditure payable Reserve funds Coop Eduction funds Undisburesed profit Other Reserve and funds out of profit Other Reserve and funds other liabilities Reserve Defecit Recoverable Total Diff b/w Assets &Liabilities (less) Total

Variance of inc/dec -

% of inc/dec

10.09 91.64 2.92 -19.19 16.14 1302.29 -87.60 15.95 124.80 12.90 -13.34 15.08

4662662.60 201153548.94 1451504.57 388947391.49 177175741.49 3487681.47 1000.00 507508684.85 5036777.42 160173621.31 546159799.69 11357804.90 2601458.00 2473664.12 12577704.63 255584140.71 65685948.52 21004837.51
2367043972.22 137813244.62 2229230727.60

4662662.60 201153548.94 1451504.57 353291356.42 177175741.49 1819913.47 1000.00 493118324.82 6233408.47 137916058.85 38947582.15 11357804.90 2101458.00 2473664.12 12577704.63

35656035.00 1667768.00 14390360.00 -1196631.05 22257562.05 507212217.05 -1841000.00 35157299.00

220426841.75 65685948.52 15581446.95

2096503673.65 159401063.05 1937102610.60

19446690.56 270540299.00 -21587818.04 292128117.00

ASSETS
S.N O Particulars Of Assets 1 CASH BALANCE a. Cash on Hand b. Cash at Bank c. Funds - in - Transit d.Public Deposit Account 2 INVESTEMENTS a. Reserve fund in CCB b. Shares in other Institutions c. Deposits in other Institutions 3 Loans and Advances a. Primareis and Individuals b. Adj Heads "Due -to" c. Sundry Debtors d.Fixed and other Assets e. Other Items of Assets f. Stock on Hand OTHER OUTSTANDING 4 ASSETS a. Grannts and Subsidies b. Misc Income Deficits Recoverable 5 Stocks INTEREST 6 RECEIVABLE a. Not over due Interest Balance as on 3103-2007 Balance as on 31- Variance of 03-2006 inc/dec 847089.76 431235.32 60452520.08 22526892.31 6983495.72 2543054.67 7500.00 29629000.00 7.50 721637.00 15581200.00 109258334.76 671290.00 50347.00 15581200.00 103636446.92 5621887.08 5.87 414990134.11 501352009.37 124316976.49 121225799.17 95674997.72 158196885.03 391979941.80 23010192.03 5.53 475085413.48 26266595.09 9.56 113467820.65 10849155.08 2.71 118030158.30 3195640.08 5.51 90682810.95 4992186.77 1.38 156042543.95 2154341.01 5.42 % of inc/dec -50.90 37.26 82979412.39 4440441.05 29636500.00 -36.42 395053.33

415854.44

42.88 510136508.30 617131.41 21004837.51 357018265.75 153118242.06 617131.41 15581446.95 5423390.56 34.80

0.97 1990354.00 1971114.00 19240.00

23.67 b. Overdue Interest Unsecured Loans to 7 GPCMS(DRS) Total 35093154.85 1598560.00 2229230727.60 28375760.88 6717393.97 2162.33 70660.00 1527900.00 15.08 1937102610.60 292128117.00

Graph-II
2,300,000,000.00 2,250,000,000.00 2,200,000,000.00 2,150,000,000.00 2,100,000,000.00 2,050,000,000.00 2,000,000,000.00 1,950,000,000.00 1,900,000,000.00 1,850,000,000.00 1,800,000,000.00 1,750,000,000.00 2006 2007 assets liabilities

Interpretation:-

From the above analysis of comparative balance sheet statement for the year Ended 2007 it was observed that there is increase in the total assets and liabilities by 15.08% From 2006 to 2007 i.e. from Rs.292, 128,117.00

COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED MARCH 2008 LIABILITIES
S.No 1 PARTICULAR OF LIABILITES Share capital a. Members share capital b. govt shares capital Deposits&Borrowings a. deposits b. borrowings Grants and subsides a. capital & IFAD grants b.Revenue grants c. other grants Adj. Heads"Due-by" Sundry creditors Interest payable Other Expenditure payable Reserve funds Coop Eduction funds Undisburesed profit Other Reserve and funds out of profit Other Reserve and funds other liabilities Reserve Defecit Recoverable Total Diff b/w Assets &Liabilities Total Balances as on 31/03/2008 Balances as on 31/03/2007

Variance of inc/dec
-

% of inc/dec
-6.54 7.90 -3.58 83.66 15.04 -38.83 7.09 8.69 -89.99 -7.40 -8.15 -42.24 -6.05

4662662.60 201153548.94 1451504.57 363506759.44 191175741.49 3487681.47 1000.00 489292839.49 9250634.79 184269448.56 334055925.80 11357804.90 2416907.00 2473664.12 12577704.63 277794984.40 65569373.97 19450465.17
2173948651.34 79595271.80

4662662.60 201153548.94 1451504.57 388947391.49 177175741.49 3487681.47 1000.00 507508684.85 5036777.42 160173621.31 546159799.69 11357804.90 2601458.00 2473664.12 12577704.63

-25440632.00 14000000.00 -18215845.04 4213857.37 24095827.02 -212103873.08 -184551.00 22210843.07

4 5 6 7 8 9 10 11 12 13 14

255584140.71 655685948.52 21004837.51

-590116574.05 -1554372.34 -193095321.00

2367043972.22

-58217972.08
137813244.62

2094353379.54 2229230727.60

-134877348.00

ASSETS
S.NO Particulars Of Assets 1 CASH BALANCE a. Cash on Hand b. Cash at Bank c. Funds - in Transit d.Public Deposit Account 2 INVESTEMENTS a. Reserve fund in CCB b. Shares in other Institutions c. Deposits in other Institutions 3 Loans and Advances a. Primareis and Individuals b. Adj Heads "Due -to" c. Sundry Debtors d.Fixed and other Assets e. Other Items of Assets f. Stock on Hand OTHER OUTSTANDING 4 ASSETS a. Grannts and Subsidies b. Misc Income Deficits Recoverable 5 Stocks INTEREST 6 RECEIVABLE a. Not over due Interest b. Overdue Interest Balance as on 31-03-2008 Balance as on 31-03-2007 Variance of inc/dec %of inc/dec

3077530.65 104772675.14 6789780.76 1817.00

415854.44 2661676.21 82979412.39 4440441.05 21793262.71 2349339.71

640.04 26.26 52.90 -99.99

29636500.00 29634683.00

775760.00 15581200.00 140301113.76

721637.00 15581200.00 109258334.76

54123.00 31042779.00

7.50 28.41

342933719.56 563795616.72 129579015.60 147464969.82 154441674.30 149486035.57

414990134.11 501352009.37 124316976.49

-72056414.06 62443607.04 5262039.02

-17.36 12.45 4.23 21.64 61.42 -5.51

121225799.17 26239170.07 95674997.72 58766676.58 158196885.03 8710849.05

298224723.60 617131.41 19450465.17

510136508.30 211911784.07 617131.41 21004837.51 1554372.34

-41.54 -7.40

2143044.00 13318546.48

1990354.00 152690.00 35093154.85 21774608.37

7.67 -62.04

Unsecured Loans to 7 GPCMS(DRS) Total

1598560.00 2094353379.54

2229230727.60 134877348.00

1598560.00

-6.05

Graph III
2,250,000,000.00

2,200,000,000.00

2,150,000,000.00 assets 2,100,000,000.00 liabilities

2,050,000,000.00

2,000,000,000.00 2007 2008

Interpretation:From the above analysis of comparative balance sheet statement for the year Ended 2008 it was observed that there is decrease in the total assets and liabilities by -6.05% From 2007 to 2008 i.e. from Rs. -134,877,348.00

COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED MARCH 2009 LIABILITIES
Balances as on 31/03/2009 4662662.60 201153548.94 1451504.57 329438954.49 191175741.49 3487681.47 1000.00 516644997.55 7449492.73 203119887.67 583187556.04 11357804.90 2766907.00 2473664.12 12577704.63 261534737.11 65608438.27 16251518.09
2414343801.67 33185711.60

PARTICULAR OF S.No LIABILITES 1 Share capital a. Members share capital b. govt shares capital 2 Deposits&Borrowings a. deposits b. borrowings 3 Grants and subsides a. capital & IFAD grants b.Revenue grants c. other grants 4 Adj. Heads"Due-by" 5 Sundry creditors 6 Interest payable 7 8 9 10 Other Expenditure payable Reserve funds Coop Eduction funds Undisburesed profit Other Reserve and funds out 11 of profit 12 Other Reserve and funds 13 other liabilities 14 Reserve Defecit Recoverable Total Diff b/w Assets &Liabilities Total

Balances as on 31/03/2008 4662662.60 201153548.94

Variance of inc/dec -

% of inc/dec -9.37 5.59 -19.47 10.23 74.57 -3.52 8.08 -5.85 0.05 -16.45 11.06 -58.31 13.69

1451504.57 363506759.44 -34067805.00 191175741.49 3487681.47 1000.00 489292839.49 27352158.01 9250634.79 -1801142.06 184269448.56 18850439.01 249131630.02 334055925.80 11357808.90 -4.00 2416907.00 2473644.12 20.00 12577704.63 277794984.40 -16260247.03 65569373.97 39064.03 -3198947.08 19450465.17 2173948651.34 240395150.00 -46409560.02
79595271.80

2381158090.07

2094353379.54 286804711.00

ASSETS
S.NO Particulars Of Assets 1 CASH BALANCE a. Cash on Hand b. Cash at Bank c. Funds - in Transit d.Public Deposit Account 2 INVESTEMENTS a. Reserve fund in CCB b. Shares in other Institutions c. Deposits in other Institutions 3 Loans and Advances a. Primareis and Individuals b. Adj Heads "Due -to" c. Sundry Debtors d.Fixed and other Assets e. Other Items of Assets f. Stock on Hand OTHER OUTSTANDING 4 ASSETS a. Grannts and Subsidies b. Misc Income Deficits Recoverable 5 Stocks 6 INTEREST RECEIVABLE a. Not over due Interest b. Overdue Interest Unsecured Loans to 7 GPCMS(DRS) Total 1605240.00 32355568.48 1598560.00 2143044.00 13318546.48 1598560.00 -537804.00 19037022.00 286804711.00 -25.09 142.94 13.69 225473784.66 596295445.02 173510487.49 174957100.09 115261910.50 93131959.97 342933719.56 117459934.09 563795616.72 129579015.60 147464969.82 154441674.30 149486035.57 32499828.03
43931471.08

Balance as on 31-03-2009 736056.29 46451866.07 4006833.05 1817.00 833942.00 15581200.00 319837824.76

Balance as on 31-03-2008 3077530.65 104772675.14 6789780.76 1817.00 775760.00 15581200.00 140301113.76

Variance of inc/dec -2341474.36 -58320809.03 -2782947.71 58182.00 179536711.00

% of inc/ dec -76.08 -55.66 -40.98 7.05 127.96

-34.25 5.76 33.90 18.64 -25.36 -37.69

27492130.02 -39179763.08 -56354075.53

562655845.19 617131.41 16251518.09

298224723.60 617131.41 19450465.17

264431121.05 -3198947.08

88.67 -16.44

2381158090.07 2094353379.54

Graph IV
2,450,000,000.00 2,400,000,000.00 2,350,000,000.00 2,300,000,000.00 2,250,000,000.00 2,200,000,000.00 2,150,000,000.00 2,100,000,000.00 2,050,000,000.00 2,000,000,000.00 1,950,000,000.00 2008 2009 assets liabilities

Interpretation:-

From the above analysis of comparative balance sheet statement for the year ended 2009 it was observed that there is increase in the total assets and liabilities by 13.69% from 2008 To 2009 i.e. from Rs.286, 804,711.00

COMPARATIVE BALANCE SHEET FOR THE YEAR ENDED MARCH 2010

LIABILITES
S.No PARTICULAR OF LIABILITES 1 Share capital a. Members share capital b. govt shares capital 2 Deposits&Borrowings a. deposits b. borrowings 3 Grants and subsides a. capital & IFAD grants b.Revenue grants c. other grants 4 Adj. Heads"Due-by" 5 Sundry creditors 6 Interest payable Other Expenditure 7 payable 8 Reserve funds 9 Coop Eduction funds 10 Undisburesed profit Other Reserve and funds 11 out of profit 12 Other Reserve and funds 13 other liabilities Reserve Defecit 14 Recoverable Total Diff b/w Assets &Liabilities(-) Total 191175741.49 3487681.47 1000.00 509509918.85 6624032.79 223161469.13 589956528.04 11357804.90 3170718.00 2473664.12 12577704.63 288905541.02 65608438.27 15891790.22
2357783117.53 1242248.72

Balances as on 31/03/2010

Balances as on 31/03/2009

Variance of inc/dec

% of inc/dec

4662662.60 201153548.94 1448072.57 226616800.49

4662662.60 201153548.94 1451504.57 329438954.49

-3432.00 -102822154.00

-0.24 -31.21

191175741.49 3487681.47 1000.00 516644997.55 7449492.73 203119887.67 583187556.04 11357804.90 2766907.00 2473664.12 12577704.63 261534737.11 65608438.27 16251518.09

-7135078.07 -825459.94 20041581.05 6768972.00 403811.00 27370803.09 359727.87 56560684.00

-1.38 -11.08 9.86 1.16 14.59 10.46 -2.21 -2.34 -96.26 -10.03

2414343801.67

-31943462.80
33185711.60

2356540868.81

2381158090.07

-24617222.00

assets
S.N O Particulars Of Assets Balance as on 31-03-2010 1032578.28 44360453.03 3467730.05 1817.00 Balance as on 31-03-2009 736056.29 46451866.07 4000833.05 1817.00 Variance of inc/dec 296521.99 -2091413.04 -533103.00 % of inc/dec 40.28 -4.50 -13.32 1 CASH BALANCE a. Cash on Hand b. Cash at Bank c. Funds - in Transit d.Public Deposit Account 2 INVESTEMENTS a. Reserve fund in CCB b. Shares in other Institutions c. Deposits in other Institutions 3 Loans and Advances a. Primareis and Individuals b. Adj Heads "Due -to" c. Sundry Debtors d.Fixed and other Assets e. Other Items of Assets f. Stock on Hand OTHER OUTSTANDING 4 ASSETS a. Grannts and Subsidies b. Misc Income Deficits Recoverable 5 Stocks 6 INTEREST RECEIVABLE a. Not over due Interest b. Overdue Interest Unsecured Loans to 7 GPCMS(DRS) Total 909036.00 15581200.00 296071191.76 833942.00 15581200.00 319837824.76 -23766633.00 75094.00 9.00 -7.43

237626587.17 593149177.70 205073385.88 186926256.60 70679881.63 76286989.53

225473784.66 596295445.02 173510487.49 174957100.09 115261910.50 93131959.97

12152802.05 -3146267.03 31562898.04 11969156.06 -44582028.87 -16844970.44

5.39 -0.33 18.19 6.84 -38.68 -18.08

56265584.19

562655845.19 617131.41 16251518.09 1605240.00 32355568.48 1598560.00 2381158090.07

-506390260.09 617131.41 -359727.87 -784479.94 12052060.29 -24617222.00

-90.00 100.00 -2.21 -48.87 37.25 -10.03

15891790.22 820760.06 44407628.77 1598560.00 23565408680.81

Graph V
2,385,000,000.00 2,380,000,000.00 2,375,000,000.00 2,370,000,000.00 2,365,000,000.00 2,360,000,000.00 2,355,000,000.00 2,350,000,000.00 2,345,000,000.00 2,340,000,000.00 2009 2010 assets liabilities

Interpretation:-

From the above analysis of comparative balance sheet statement for the Year ended 2010 it was observed that there is Decrease in the total assets and liabilities by

-10.03% from 2009 to 2010 i.e. from Rs. -24,617,222.00

CHAPTER-V
SUMMARY & SUGGESTIONS

Summary Findings Suggestions Conclusion Bibliography Annexure

Summary:Variance analysis helps management to evaluate performance so that the opportunity for taking action is maximized. It does not prescribe action directly. The accountant's role is to present information in an appropriate and timely manner, indicating significant areas of concern, or opportunity, for management attention.

Findings:

In my findings total liabilities are higher than the total assets during the period 2005 to 2010. In the year 2007 to 2008 & 2009 to 2010 loss in assets & liabilities. In the year 2006 to 2007 there is increase in public deposits &grants and subsidies with GCC. In the year 2005 to 2006 & 2006 to 2007 & 2008 to 2009 & 2009 to 2010 there is decrease in borrowings. GCC increased in assets & liabilities in the year 2005 to 2006 & 2006 to 2007 &2008 to 2009.

Suggestions: The company should try to implement the new financial strategies in order to reduce further losses. It must take necessary steps to meet the balance sheet requirements. Girijan Cooperative Corporation must improve cash sales because of the debtors collecting period is more than 100 days that will effect on balance sheet. Girijan Cooperative Corporation must maintain their cash balance and creditors payments period to adequate period. Better to take grants from government as early possible. Suitable strategies for modernizations can be adopted to improve the overall performance GCC limited in the future years. It can use media such as television, newspapers and etc., for advertising its products.

Conclusion:Finally I conclude this project is more responsibilities transferred to head of departments and also monitoring all the operations by the chairman or other superior officers.

BIBLIOGRAPHY:-

M. Pandi Kumar, Cost and Management Accounting, Excel Publications. R. P. Trivedi, Advanced Financial Management Accountancy, Kalyani Publishers. Annual reports of GCC in 2005 to 2010

Journals:
Business line Economic times Business world

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ANNEXURES:-

LIST OF NON TIMBER FOREST PRODUCE ITEMS UNDER LEASE AGREEMENT ENTERED BY GCC Ltd., VISAKHAPATNAM WITH AP FOREST DEPARTMENT

Sl. No. 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

NAME OF THE COMMODITY ADDALEAF HILL BROOMS WILD BROOMS SHEEKAKAI AMLA FRUIT & SEED CLEANINGNUTS CHIRANJI ROCK BEE HONEY APIARY HONEY KUSUM OIL SEED MYROBALANS MOHWA SEED MOHWA FLOWER MARKINGNUTS NUXVOMICA FRUIT & SEED PUNGAM SEED NARAMAMIDI BARK RAWULFIA SERPENTINA SOAPNUTS HONEY WAX GUM KARAYA TAMARIND a) Shell b) Seeded TERIPODS MAREDUGEDDALU SUGANDHIPALA

c) Deseeded

d) Green

e) Seed

STATEMENT SHOWING THE LIST OF MEDICINAL HERBS UNDER LEASE AGREEMENT 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. 29. 30. 31. 32. 33. Abrus precatorius (Guruvindaginjalu) - seed Achyranthues aspera (Uttareni / Apamarga) whole plant Adhatodavasici(Adda sara) - Leaves Aegle marmolos (Maredu) fruit / root Aloe indica (Kalabanda) Andrographis pauiculata (Nelavemu) Aerial plant Argyreia speciosa (Samudra pala) Fruits / flowers Boerhavia diffusa (Atikamamidi/Rakta punarnava) whole plant Bombax Melabarcium (Boorugu) - gum Butea SuperbaButea of monosperma (Moduga/Teega moduga) seeds and flowers Caosalpinia Bonduc (Gacha kayalu) - nut Cassiatora (Tantemu/Tagarisa) Caturnaragam spinosa (Manga) - fruit Cassua fistula ((Rella) Celeastrus paniculatous (Markangani/Jyothismatti) - seed Centella asiatica (Saraswati aaku) whole plant Citrullus colocynthis (indrayani) Curculigo orchioides (Nelatadigaddalu) rhizome Cyporus rotandus (Tunga) Eclipta prostrata (gantu barangi / Gantu galagaru) whole plant Helicteres Isora (Nulitada)- fruit Holarrhena antidysenterica(Kodisapla) - seeds Gymnema sylvestre (Podapatri) Nulitadu leaves Jatrofa curcus (Nepalam) - seeds Mallotos phillippensis (Kumkuma) seed Mucuna pruriens (Duradagondi ginjalu) - seeds Ocinum amoricanam (Kukka Tulasi) - leaf Phumbago zoyianica (Tella chitra mula) - root Phylanthus amarus (Nelausiri) whole plant Solanum surrtense (Mulla vanga) - fruits Syzyaium cumini (Neredu) seed & bark Tinospora cordifolia ( Tippateega) stem bark Tribulus terrestris (Chinnapalleru) seeds

34.

Woodfordia fruiticosa (Are / Jaji) flower

PURCHASE PRICES OF MFP AS ON 28.02.2010

Sl. No. 1.

Name of the Commodity GUM KARAYA GR.I GUM KARAYA GR.II GUM KARAYA GR. III GUM KONDAGOGU GR. I GUM KONDAGOGU GR. II GUM KONDAGOGU GR. III GUM OLIBANUM GR. I GUM OLIBANUM GR. II GUM TIRUMAN GR. I GUM TIRUMAN GR. II GUM TIRUMAN GR. III GUM DIKAMALI BEES WAX HONEY SEEDED TAMARIND DESEEDED TAMARIND TAMARIND SEED NEEM SEED NUXVOMICA CLEANING NUTS MARKING NUTS MAREDUGADDALU MOHWA SEED PUNGAM SEED MOHWA FLOWER MYROBOLANS R.S. ROOTS NARAMAMIDI BARK HILL BROOMS (Nos.) WILD BROOMS (per kg..) SHEEKAKAI SOAPNUTS (Forest)

201011 190.00 140.00 125.00 130.00 90.00 70.00 40.00 30.00 80.00 60.00 50.00 12.00 100.00 120.00 13.50 28.00 5.00 2.25 17.00 9.00 3.00 70.00 9.00 9.50 7.00 5.50 100.00 25.00 20.00 to 45.00 21.00 6.00 15.00 /20.00

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.

SOAPNUTS (Akkaram) DRY AMLA ADDALEAF

23.00 28.00 3.50

PURCHASE PRICES OF MEDICINAL PLANTS / HERBS AS ON 01.12.2010 (Rate per kg in Rs.) Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9 Botanical Name of the Plant Andrographis paniculata Caesalpinia bonduc Entada pursaetha Holostemma ada-kodien Rauvolfia serpentia Terminalia bellerica Tinospora cordifilia Casia fistula Mucuna pruries Purchase Price fixed 6.00 25.00 7.00 350.00 100.00 2.00 5.00 4.00 Seed 70.00 Season for Collection Oct-Dec Nov-Jan Oct-Jan Oct-Dec Oct-Jan Oct Jan Nov-Dec

Local Name Nela vemu Gatcha Gilla Dudipala Geddalu Sarpagandhi Tanikayalu Tippa teega Rella bark Dulagondi

Useful Part Aerial Part Seed Seed Root Root Fruit pulp Steam

RETAIL MARKETING DEPARTMENT ISSUE PRICE TO DISTRIBUTORS & RETAILERS w.e.f. 01.11.2010 Issue Price to Retailers 6 217.52 124.30 60.59 21.13 9.32 26.90 38.50 00.00 00.00 00.00 00.00 38.20 38.00 21.00 27.50 11.50 19.00 46.00 49.50 10.50 20.00 21.50 38.50 96.00 12.80 9.75 14.10 11.00 22.05 13.30 10.25 7.35 3.40 19.75 12.00 21.65 12.80 17.95 9.75 00.00 00.00 26.50 17.65 31.55 24.60 33.35

Sl. No. 1 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 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 50 51

Name of the Product 2 HONEY HONEY Honey A Grade HONEY HONEY HONEY Ritu Aloevera Soap Deseeded Tamarind Pulp Tamarind Pulp Tamarind Flower Tamarind Flower Tamarind RAJMAH RED RAJMAH WHITE WHITE BEANS KATTINGS SOYABEANS Soyabean Powder Dry Chillies Chilli Powder Chilli Powder Chilli Powder Turmeric Powder Turmeric Powder Turmeric Powder Ritu Neem Soaps Ritu Neem Soaps Ritu Turmeric Soaps Ritu Turmeric Soaps Ritu Aloever Soap Ritu Aloever Soap Ritu Aloever Soap Ritu Aloever Soap Ritu Aloever Soap Sheekai Powder Sheekai Powder Soapnut Powder Soapnut Powder AMLA POWDER AMLA POWDER Sheekai Pods Sheekai Pods Soap Nuts(Akkaram) Soapnuts (Forest) Soapnut Pulp Akkara Soapnut Pulp(Forest) Hill Brooms Coffee Powder Coffee Powder Honey Soap

Pack Size 3 5 Kgs. 1 kg. 500 Gms 200 Gms 50 Gms 20 Gms 150 Gms 1 Kg 1 KG 500 Gms 1 Kg. 500 Gms 500 Gms 500 Gms 500 Gms 500 Gms 200 Gms 200 Gms 500 Gms 500 Gms 100 Gms 200 Gms 100 Gms 200 Gms 500 Gms 100 Gms 75 Gms 100 Gms 75 Gms 125 Gms 100 Gms 75 Gms 50 Gms 20 Gms 200 Gms 100 Gms 200 Gms 100 Gms 200 Gms 100 Gms 500 Gms 1000 Gms 1000 Gms 1000 Gms 500 Gms 500 Gms. Grade-1 250 Gms. 100 Gms. 75 Gms.

Issue Price to C & F Agents 4 175.00 100.00 48.75 17.00 7.50 21.60 36.00 38.00 00.00 40.50 00.00 33.00 33.00 17.00 24.00 9.50 16.80 40.00 43.00 8.50 17.00 17.00 33.00 80.00 10.30 7.90 11.30 8.80 17.70 10.80 8.40 5.90 2.80 15.70 9.80 17.40 10.30 14.20 7.90 6.50 12.00 22.50 14.20 25.00 19.60 26.50 38.00 14.00 18.00

Issue Price to Distributors 5 197.75 113.00 55.08 19.21 8.47 24.55 37.50 00.00 00.00 00.00 00.00 36.00 36.00 19.00 26.00 10.50 18.00 43.00 46.50 9.50 18.50 19.50 36.00 88.00 11.70 8.90 12.85 10.05 20.10 12.20 9.40 6.70 3.15 17.85 11.05 19.75 11.70 16.30 8.90 00.00 00.00 24.50 16.15 28.70 22.40 30.35

M.R.P. 7 255.00 145.00 72.00 25.00 11.00 30.50 40.00 00.00 00.00 00.00 00.00 43.00 43.00 23.00 31.00 12.50 21.50 50.00 55.50 12.00 22.50 25.00 43.00 105.00 14.50 11.00 16.00 12.50 25.00 15.00 11.50 8.30 3.85 22.50 13.50 24.50 14.50 20.50 11.00 10.00 20.00 30.00 20.00 36.00 28.00 38.00 43.00 18.00 25.00

ABREVIATIONS

01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11. 12.

N.T.F.P. A.P. DR Depots E.Cs. RMD D.R.D.A. GPCMS CCPA ITDA APCOB NABARD TRIFED

: : : : : : : : : : : :

Non Timber Forest Produce Agricultural Produce Domestic Requirement Depots Essential Commodities Retail Marketing Division District Rural Development Agency Girijan Primary Cooperative Marketing Society Credit-cum-Purchase Assistant Integrated Tribal Development Agency Andhra Pradesh State Cooperative Bank National Bank for Agricultural and Rural Development Tribal Cooperative Marketing Development Federation of India

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