Project work at MOTHER DAIRY

Presented by SUMANTH ATREYAS G

Industry The dairy industry plays an important role in the socioeconomic development of India. The dairy industry in India is instrumental in providing cheap nutritional food to the vast population of India and also generates huge employment opportunities for people in rural places. The White Revolution Kurien has since then built this organization into one of the largest and most successful institutions in India. The Amul pattern of cooperatives had been so successful, in 1965, then Prime Minister of India, Shri Lal Bahadur Shastri, created the National Dairy Development Board (NDDB) to replicate the program on a nationwide basis citing Kurien's "extraordinary and dynamic leadership" upon naming him chairman.

Dairy Market India is the largest producer of dairy products in the world. There is great deal of variation in the pattern of dairy production worldwide. Many countries which are large producers, consume this internally The worlds largest exporter of dairy products is New Zealand and dairy products are the largest export earner for the country. Fonterra is the fifth largest dairy company in the world and New Zealands largest company by turnover. Japan is the worlds largest importer of dairy products

Introduction to KMF Karnataka Milk Federation which is most popular as KMF, evolved itself as a premier and most profitable dairy farmers' organization in the State of Karnataka. Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the Apex Body in Karnataka representing Dairy Farmers' Cooperatives. It is the second largest dairy co-operative amongst the dairy cooperatives in the country. In South India, it stands first in terms of procurement as well as sales. One of the core functions of the Federation is marketing of Milk and Milk Products. The Brand "Nandini" is the household name for Pure and Fresh milk and milk products. KMF has 13 Milk Unions throughout the State which procure milk from Primary Dairy Cooperative Societies(DCS) and distribute milk to the consumers in various Towns/Cities/Rural markets in Karnataka.

Mother Dairy, Bangalore, a flagship dairy of KMF having ISO22000:2005 Certification, was set up during the year 1984, primarily for dispensing liquid milk to customers through Bulk Vending system. Today, the Dairy stands expanded from 2 Lakh Litres to 7 Lakh Litres milk processing per day. Also, it has facilitates to pack and distribute milk & curd in different packs formats in the most hygienic way. Besides, it has a state of the art facility to manufacture Skim Milk Powder, Dairy Whitener, as well as Whole Milk Powder to the tune of 30 MTs per day. It has established a facility to manufacture more than 20 varieties of Ice cream in the various pack formats to the tune of 15000 Litres per day. Presently, it is undertaking manufacturing and co-packing of 'Amul' brand of ice cream for GCMMF.

Topic WORKING CAPITAL MANAGEMENT

Objectives To understand the working capital management in the organization. To know about the financial performances of the organization. To know about the current assets position of the company. To know the current liabilities position of the company. To analyze the various working capital ratios.

CURRENT ASSETS FOR 4 YEARS 2006-07 145017716.93 2007-08 189848116.3 2008-09 234944475.92 2009-10 141127299.69 CURRENT LIABLITIES FOR 4 YEAR 2006-07 72007722 2007-08 85444313.08 2008-09 122727366 2009-10 80331609 WORKING CAPITAL TURNOVER RATIO 2006-07 11.20 2007-08 16.03 2008-09 17.07 2009-10 34.06

SUNDRY DEBTORS 2006-07 25136108.07 2007-08 23549093.86 2008-09 20993500.28 2009-10 21795075.25 CASH & BANK BALANCES 2006-07 10191643 2007-08 7370916.64 2008-09 5470433.17 2009-10 39060760.13 GROSS WORKING CAPITAL 2006-07 145017717 2007-08 189848117 2008-09 234944474 2009-10 141127299

The company has obtained funds only through long term loans secured and government funds. Loan fund raised has been considerably increased up to the year 2008-09. But in the year 2009-10 loans and advances have been decreased. The inventory position of the company was decreased in the year 2009-10 when compare to rest other years. The cash and bank balances position of the company has been increased in the year 2009-10 when compare to rest other years. The current assets position is almost parallel in the first three financial years. But in the year 2009-10 it was decreased. Gross working capital reveals the position of working capital seems to be good there is an considerable increase from the past three years, but in the year 2009-10 it was decreased to 141127299.

In the year 2009-10 cash and bank balances have increased, so company should utilize it in efficient way. Inventory position has been decreased in the year 2010. Company should increase their inventory position to operate its day to day operations smoothly. Credit policy should be improved so that the payments from the debtors can be obtained as soon as possible. Working capital ratio is increasing from the last four years its a good sign. So it is recommended that the company should maintain in the same way.

The financial decision making plays a very important role in the organization. The overall performance of the company depends upon the funds associated to various departments and proper management of funds. The finance department and all other departments of Mother Dairy are well integrated and co-ordinate together. As the goodwill of the management, interested employees are given opportunities to go for higher studies with all benefits. The performance of finance department and finance decisions reflect on all the activities of the organization. Although the main aim of the organization is not profit making only but to serve the society also, yet the companys profit earning is considerable over a period of time and it can be much better than the present. With this project study, I got the opportunity to understand practically the various tools and techniques used in evaluating the overall financial performance of the company.