Project Report of KMF

A Study on Working Capital Management at KMF

EXECUTIVE SUMMARY

Karnataka Milk Federation (KMF) is the apex body in Karnataka

representing Dairy Farmers Co-operatives. It is the third largest dairy co-

operative amongst the dairy co-operative operatives 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 Corporate Exposure and Learning (CEL) conducted at Karnataka

Milk Federation consist of two parts:-

Part A consists of a general study relating to the organization. It

consists of the kind of industry they belong to and the type of business

undertaken by them. It also consists of information about various divisions,

on how they function, the strategies and policies used by each division and

how they are able to achieve their goals. The study includes the functioning

of KMF with reference to Mc Kinsey’s 7S framework, which is an indicator

to KMF’s performance and for what it is till date.

Part B consists of a detailed study on the Working Capital

Management of the organization. The study states on how the liquidity

position is being maintained by KMF. This study is carried out to find the

financial health of KMF by using various ratios. The objective of this study

is to thoroughly analyze the organization’s solvency, profitability and

performance over the years.

Lal Bahadur Shastri Govt First Grade College, Bangalore 1


CHAPTER 1

INTRODUCTION



INTRODUCTION TO FINANCE:-

Finance if the life blood of a business. The Financial Management

study about the process of procuring and judicious use of financial resources

with a view to maximizing the valued of the firm thereby the value of the

owners i.e., equity shareholders in a company is maximized.

The traditional view of Financial Management looks into the following

functions that a Finance Manager of a business firm will perform.

Arrangement of short term and long term funds from financial

institutions.

Mobilization of funds through financial instruments like Equity

shares, Preference shares, Debentures, Bonds etc.

Orientation of Finance functions with the Accounting function and

compliance of legal provisions relating to funds procurement, use and

distribution.

With the increase in complexity of modern business situation, the role of a Finance Manager is not just confined to procurement of funds, but his area of functioning is extended to judicious and efficient use of funds available to the firm, keeping in view the objectives of the firm and expectations of the providers of funds.



INTRODUCTION TO WORKING CAPITAL

Working capital management is a significant in financial management

due to the fact that it plays a pivotal role in keeping the wheels of a business

enterprise running. Working capital management is concerned with short-

term financial decisions. Shortage of funds for working capital has caused

many businesses to fail and in many cases, has retarded their growth. Lack

of efficient and effective utilization of working capital leads to earn low rate

of return on capital employed or even compels to sustain losses. The need

for skilled working capital management has thus become greater in recent

years.

A firm invests a part of its permanent capital in fixed assets and keeps

a part of it for working capital i.e. for meeting the day to day requirements.

We will hardly find affirm which does not require any amount of working

capital for its normal operations. The requirement of working capital varies

from firm to firm depending upon the nature of business, production policy,

market conditions, seasonality of operations, conditions of supply etc.

Working capital to a company is like the blood to the human body. Working

capital is the lifeblood of any business firm and shortage of funds for

working capital will lead to business failure. The management of short term

funds. Working capital management if carried out effectively, efficiently and

consistently, will assure the health of an organization.

MEANING OF WORKING CAPITAL :



Working capital is defined as “the excess of current liabilities”.

Current assets are those assets which will be converted into cash within the

current accounting period or within the next year as a result of the ordinary

operations of the business. They are cash or near cash resources. These

include:

Cash and Bank balances

Receivables

Inventory

o Raw-materials, stores and spares

o Work-in-progress

o Finished goods

Prepaid expenses

Short-term advances

Temporary investments

The value represented by these assets circulates among several items. Cash

is used to buy raw-materials, to pay wages and to meet other manufacturing

expenses. Finished goods are produced. These are held as inventories. When

these are sold, accounts receivables are created. The collection of accounts

receivable brings cash into the firm. The cycle starts again.

Current liabilities are the debts of the firms that have to be paid

during the current accounting period or within a year. These include:

Creditors for goods purchased

Outstanding expenses i.e., expenses due but not paid

Short-term borrowings

Advances received against sales



Taxes and dividends payable

Other liabilities maturing within a year.

Working capital is also known as circulating capital, fluctuating capital and

revolving capital. The magnitude and composition keep on changing

continuously in the course of business.

OPERATIONAL DEFINITIONS OF THE CONCEPTS:-

Working capital

Working capital may be regarded as that portion of a firm’s total

capital, which is employed in financing its day-to-day operations such as

cash, debtors, inventories, marketable securities etc., it is the amount of

funds, which a firm holds, in the form of current assets to meet its current

obligations. It’s also known as Revolving and Circulating capital.

CLASSIFICATION OF WORKING CAPITAL :-

Gross Working Capital :

It is the capital invested in the total current assets of the enterprise.

E.g. Cash, Bills receivables, Sundry debtors, Short-term loans, Pre-paid

expenses etc.,

Net Working Capital:



It is the excess of current assets over current liabilities. Or it is the

difference between the current assets and current liabilities.

Negative Working Capital:-

It refers to the excess of current liabilities over the current assets. Its

also known as Working Capital Deficit.

Permanent Working Capital:

It refers to the amount of investment made permanently in current

assets required throughout the year to carry out the business operations

successively. Permanent working capital is to be financed out of long-term

funds but no return can be expected from it. Permanent Working Capital is

also known as regular or fixed or had core Working Capital.

Temporary Working Capital:

It is the additional Working Capital, which is required for financing

the increase in the volume of business operations at different times during

the operating year. Thus it refers to the amount of Working Capital, which

goes on fluctuating or changing from time to time with the change in the

volume of business activities. Its also known as variable or fluctuating

Working Capital. It is to be financed out of short-term funds and some return

can be expected from it.

Current Assets:

Current assets are those assets which change their form and substance,

and which are converted into cash during the normal operating cycle of the

business or within an accounting year. In short, all those assets, which can



be converted into cash within an accounting year, are called Current Assets.

They include cash, short-term securities, debtors, bills receivables and stock

inventory.

Current Liabilities:

Current Liabilities are those claims of outsiders, which are expected to

mature for payment within an accounting year. In other words, it refers to all

short term obligation or liabilities which are required to be repaid within a

period of one year out of short-term or current assets. They include creditors,

bills payables, outstanding expenses and provision for taxation etc.,

Cost of Goods Sold:

It refers to opening stock of finished goods plus purchases of finished

goods plus all direct expenses incurred on finished goods minus closing

stock of finished goods. Alternatively, the cost of goods sold can be taken as

sales of finished goods minus gross profit.

Cash:

Cash is the money, which the firm can disburse immediately without

any restrictions. It includes coins, currency and cheques held by the firm and

balances in bank accounts. Sometimes mere cash items such as marketable

securities or bank time cheques are included in cash.

OBJECTIVES OF WORKING CAPITAL:



The basic objectives of working capital management are as follows:

By optimizing the investment in current assets and by reducing the

level of current liabilities, the company can reduce the locking up of

funds in working capital there by; it can improve the return on capital

employed in the business.

The second important objective of working capital management is that

the company should always be in a position to meet its current

obligations which should properly be supported by the current assets

available with the firm. But maintaining excess funds in working

capital means locking of funds without return.

TOOLS AND TECHNIQUES OF WORKING CAPIRAL ANALYSIS:-

Gross current assets:- This tool tells us the amount invested in the

various components of current assets and its share in a total

investment of the company. By studying this, financial manager is

able to manage efficiently, the working capital, which ensures the

greatest return on its investment, planning and control of funds.

Ratio Analysis: - A ratio is a quotient of two numbers i.e. the relation

of one item to another expressed in a simple mathematical form. Here

we are considering the ratios, which talks about the efficiency of

working capital management. They include:-

Working Capital management



Current Asset to Total Asset

Current Ratio

Net Working Capital Turnover Ratio

Gross Working Capital Ratio

Current Asset Turnover Ratio

Working Capital Turnover Ratio

Operating Cycle.

Cash Management

Quick Ratio

Absolute Liquid Ratio

Liquid Asset to Working Capital Ratio

Cash/Bank to Current Asset

Iintroduction to Nandini Milk Industry (KMF)

Karnataka Milk Federation – a harbinger of rural prosperityKarnataka Milk Federation (KMF) is the largest cooperative dairy Federation in South India, owned and managed by milk producers of Karnataka State. KMF has over 2 million milk producers in over 10500 Dairy Cooperative Societies at village level, functioning under 13 District Cooperative Milk Unions in Karnataka State. The mission of the federation is to usher rural prosperity through dairy development. During the last four decades of cooperative dairy development by KMF, the dairy industry in Karnataka has progressed from a situation of milk-scarcity to that of milk-surplus.

“Quality Excellence from Cow to Consumer” – is the motto of the Federation to obtain better-quality Milk and milk products from our value chain (Procurement to Processing to Marketing). Thus milk and milk products, under “Nandini” brand name, are unmatched in quality made available to consumers at most competitive prices. In a way Nandini Milk



and Milk Products are “Spreading wealth of health”.

Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. 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.

The first ever World Bank funded Dairy Development Program in the country started in Karnataka with the organization of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from World Bank, Operation Flood II & III. The dairy co-operatives were established under the ANAND pattern in a three tier structure with the Village Level Dairy Co-operatives forming the base level, the District Level Milk Unions at the middle level to take care of the procurement, processing and marketing of milk and the Karnataka Milk Federation as the Apex Body to co-ordinate the growth of the sector at the State level.

Coordination of activities among the Unions and developing market for Milk and Milk products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid milk among the member Milk Unions is monitored by the Federation. While the marketing of all the Milk Products is organized by KMF, both within and outside the State, all the Milk and Milk products are sold under a common brand name NANDINI.

THE GROWTH PROCESS



The growth over the years and activities undertaken by KMF is summarized briefly hereunder:

1976-77

2010-2011(Up to Jan'11)

Dairy Co-operatives Nos 41612262 Regd./10766

Funct.

Membership Nos 37000 20.65 Lacs

Milk Procurement Kgs/day 5000038.34 / Peak Proc.41.83

LKPD

Milk Sales Lts/day 9505026.26 / Curds: 2.38

LKPDCattle Feed Consumed

Kgs/DCS 220 2459

Daily Payment to Farmers

Rs.Lakhs 0.90 584

TurnoverRs.Crore

s3802.00

World Bank Study - ObservationsThe World Bank, in its study on the effect of Co-operative dairying in Karnataka, has pointed out that:

The villages with Dairy Co-operative Societies are much better off than those without.

The families with dairy cattle are economically better than those without dairy cattle.

Women who had no control on the household income have better control in terms of Milk Money.

A single commodity �MILK� has acted as a catalyst in the change in the Socio-Economic impact of the rural economy.

There is a positive impact on those at the lower end of the economic ladder both in terms of landholding and caste.



PERSPECTIVE PLAN 2010After the closure of OF-III project. Government of Karnataka and NDDB signed an MOU during February 2000, for further strengthening the Dairy Development Activities in Karnataka with an outlay of Rs.250 Cores. Consequent to the announcement of new lending terms and conditions by NDDB through an evolution of an action plan - Perspective 2010 to enable the dairy cooperatives to face the challenges of the increased demand for milk and milk products by focusing efforts in the four major thrust areas of Strengthening the Cooperatives. Enhancing Productivity, Managing Quality and building a National Information Network, plans are under implementation.

FUTURE VISIONTo consolidate the gains of Dairying achieved in the state of Karnataka and with a view to efficiently chill, process and market ever developing and increasing milk procurement with an utmost emphasis on the Quality and in the process conserve the socio-economic interests of rural milk producers, the Govt. of Karnataka through KMF has proposed to undertake several projects with financial and technical support of NDDB for which an MOU was signed between Govt. of Karnataka and NDDB on 10th Nov. 2004.



PROJECTS: Channaraypatna Milk Powder Plant consisting of 30 MT Powder Plant, 4

LLPD Dairy and butter making facility - Established & UHT of 1LLPD is being commissioned

Proposed for establishment of Cattle Feed Plants - Hassan 300 MTPD Capacity - project execution under progress - Shimoga 300 MTPD Capacity - Challagatta (Near B'lore) 500 MTPD Capacity

Multi packaging unit and Ice Cream Plant at Bellary Milk shed area.

GOI PROJECT - RKVY (Rashtriya Krushi Vikas Yojane) Fodder densification unit at different place of capacity 10 Tones each. Bio Security measures at Nandini Sperm Station, unit of KMF Strengthening of Training Centers at Bangalore, Mysore, Dharwad. Strengthening Works at Bijapur, Gulbarga, Bidar & Bellary Daily.

Other GOK Financial Support:1. To support Milk Producers of DCS members GOK is providing an amount of Rs.2.00 per liter as incentive to the milk producer from 2008-09 onwards.2. GOK is providing financial assistance for strengthening Dairy Development infrastructure facilities at Northern Karnataka milk unions jurisdiction which will also redress regional imbalance as per Dr. Nanjundappa's report.

UNITS OF KMFKMF has the following Units functioning directly under its control:

Mother Dairy, Yelahanka,Bangalore. Milk Product Plant, Channarayapatna. Nandini Milk Products, KMF Complex, Bangalore. Cattle Feed Plants at Rajanukunte/Gubbi/Dharwad/Hassan. Nandini Sperm Station (formerly known as Bull Breeding Farm & Frozen

Semen Bank) at Hessaraghatta. Pouch Film Plant at Munnekolalu, Marathhalli. Central Training Institute, Bangalore & Training Institutes at

Mysore/Dharwad. Sales Depots at B'lore, Mysore, M’lore, Hubli, Gulbarga, Tirupathi &

Kanpur.



Vision

To march forward with a missionary zeal which will make KMF a trailblazer of exemplary performance and achievements beckoning other Milk Federations in the country in pursuit of total emulation of its good deeds?

To ensure prosperity of the rural Milk producers who are ultimate owners of the Federation.

To promote producer oriented viable cooperative society to impart an impetus to the rural income, dairy productivity and rural employment.

To a bridge the gap between price of milk procurement and sale price. To develop business acumen in marketing and trading disciplines so as to

serve consumers with quality milk, give a fillip to the income of milk producers.

To compete with MNCs and Private Dairies with better quality of milk and milk products and in the process sustain invincibility of cooperatives.

MISSION Heralding economic, social and cultural prosperity in the lives of our milk

producer members by promoting vibrant, self-sustaining and holistic cooperative dairy development in Karnataka State

Objectives

KMF is a Cooperative Apex Body in the State of Karnataka representing organizations of milk producers' and implementing alround dairy development activities to achieve the following objectives:

To ensure assured and remunerative market round the year for the milk produced by the farmer members.

To make available quality milk and other premier dairy products to urban consumers.

To build & develop village level institutions as cooperative model units to manage the dairy activities.

To ensure provision of inputs for milk production, processing facilities and dissemination of know how.

To facilitate rural development by providing opportunities for self employment at village level, preventing migration to urban areas, introducing cash economy and opportunity for a sustained income.



The philosophy of dairy development is to eliminate middlemen and organize institutions to be owned and managed by the milk producers themselves, employing professionals. To sum it up, every activity of KMF revolves around meeting one basic objective: 'Achieve economies of scale to ensure maximum returns to the milk producers, at the same time facilitate wholesome milk at reasonable price to urban consumers'. Ultimately, the complex network of cooperative organization should build a bridge between masses of rural producers and millions of urban consumers and in the process achieve a socio-economic revolution in every hinterland of the State. Evolution

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.As an agency in 1975 to implement the World Bank Aided Dairy Development Projects, Karnataka Dairy Development Corporation (KDDC) was formed, the company grew itself fast and as it spreads the wings of new found rural economic activity - Dairying all over the State, the genesis of apex cooperative body took the shape of KMF in 1983 encompassing entire State with 13 District Co-operative Milk Unions executing the various parameters of Dairy activity - organization of Dairy Co-operatives, Milk Routes, Veterinary Services, Procurement of milk in two shifts of the day, Chilling, Processing of milk, distribution of milk and also establishment of Cattle Feed Plants, Nandini Sperm Station, Liquid Nitrogen Supply, Training Centers - as its main stay.The entire system was reconstructed on the model of now well known `ANAND' pattern dairy cooperative societies. Eight southern districts of Karnataka was considered initially with a target of organizing 1800 Dairy Co-operative Societies, four Milk Unions and processing facilities were set up to the tune of 6.5 lakhs per day by 1984.Under Operation Flood - II &III, project which started in 1984 & 1987 covered the remaining parts of Karnataka. Thirteen milk unions are organized in 175 talukas of all 20 districts then and the field work was extended by organizing more dairy cooperative societies. The processing facilities i.e. chilling centers, milk dairies and powder plants were transferred in phases to the administrative control of respective cooperative milk unions and the activities continued to be implemented by these District Organizations. Additional processing facilities were created & existing



facilities augmented every decade with the help of Govt. / Zilla Panchayat and NDDB to handle ever increasing milk procurement without declaring milk holidays. The processing facility as exists at 32.25 lakh liters/day is further strengthened. DAIRY SCENARIO:-

Indian Agriculture is an economic symbiosis of crop and cattle

production small and marginal farmers owing land holding engaged in

agriculture. Agriculture provides as employment for short duration in whole

year and part of workforce is virtually unemployed. In the situation dairying

sets right this imbalance in employment.

Dairying sector provides farm families the triple benefits of nutritive

food, supplementary income and productive employment for family labour.

By looking into the progress in dairy sector, there are some

achievements & they are:-

Number One Commodity :- Milk is India’s number one form

commodity in terms of its contribution to the National Economy.

World’s Number One Producer : - In 1995, the United States was

the world’s number one milk producer with its annual milk production

of 72 million tons. In 1998, when India’s annual output is projected at

78 million tons.

Values of Dairy Output :- The value of output from dairying based

on consumer process is high i.e. 1,05,000 crores (1997) and 1,50,00

crores (2000A



CHAPTER 2

RESEARCH

DESIGN



RESEARCH DESIGN

According to Johade Cook “A research design is the arrangement of

conditions for collection and analysis of data in the manner that aim to

combine relevance to research process with economy in procedure”.

“The research methodology or research design constitutes the blue

print for the collection, measurement and analysis of data”

“Research Design is the plan and structure of investigation so

conceived as to obtain answers for the research questions. It includes

an outline of what the researcher will do from writing the hypothesis

and their operational implications to the final analysis of data”

The different types of research design are:

Exploratory Research.

Conclusive Research.

The research design adopted here is of Descriptive Research

Design.

This type of design is followed when

The objectives are clearly stated.

The sampling technique going to be adopted is known.

The sampling size is determined.

The type of data collection is determined.



DATA COLLECTION:-

The data collection is one of the important aspect in the research

design purely because, it is the way that how we can get answer to the

research question.

SOURCES OF DATA COLLECTION:-

All the details are collected from secondary sources only.

Secondary data includes, the annual reports, financial reports of the

company etc., discussion with the concerned officials has also helped to

verify and evaluate the variations and results either to confirm it..

The data is collected in two ways:

Primary Data

Secondary Data

Primary Data:-

The primary data collection is one of the key tools used by the

researcher for data collection. It is the first hand information collected by the

researcher from the respondents directly. Primary data is collected through

observation and communication

Secondary Data:-

The secondary data is another form of data collection, where the data

is collected from the existing records, company manual and form previously

carried out research work and also through internet.



SCOPE OF THE STUDY:-

The study will help in analyzing the working capital for a period of

five years i.e. from 2005-06 to 2009-2010 of KMF. This is so because ratios

may not prescribe any practical standards, as they are several in numbers for

each element of study. The study helps us in finding out how well the

organization is managing the working capital.

IMPORTANCE OF THE STUDY:-

The study has got importance because working capital affects the day-

to-day operations of the business firm to larger extent. Thus, effective

management of the working capital is required for the smooth functioning of

the business firm.

There is always a need and much importance will be given for

working capital because there is always a time gap between the sales of

goods and receipt of sales proceeds. During this period, working capital is

required for sustaining or maintaining the sales activities. If adequate

working capital is not maintained for this period , the firm will not be able ot

sustain or maintain the sales, since it may not be in a position to purchase

raw materials and pay wages and other expenses and produce the goods for

the sale.

Thus, every firm requires adequate Working Capital to run its

business smoothly and successfully. It is very important to have adequate

Working Capital for that there must be efficiency in managing the working

capital requirements of the firm. However, there is a danger from both

excessive and in-adequate working capital positions.



The following two reasons state its importance.

1. Investment in current assets represents a substantial portion of total

investment.

2. Investment in current assets and the level of current liabilities have to

be geared quickly to the changes in sales.

Thus importance of Working Capital Management is reflected in the fact

that Financial Managers spent a great deal of time managing current

assets and current liabilities.

OBJECTIVES OF THE STUDY:-

To reflect the working efficiency of the concern.

To compare the efficiency of the firm.

To know the working capital of KMF as a whole.

To study the pattern and procedure followed regarding working

capital management in KMF with special reference to:-

Cash Management.

To study the liquidity of assets used. The ratio relating to the liquidity

speaks about how easy the assets can be converted into cash.

To study in detail the reasons for ups and downs in working capital

position, by studying variations in individual assets.

STATEMENT OF THE PROBLEM:-

Working Capital management plays a vital role in an organization as

it represents a substantial portion of the total investment. The importance of



working capital management is reflected in the fact that financial managers

spend a great deal of time in managing current assets and liabilities. When

not managed in proper manner i.e., if the amount invested is more in

working capital it results in funds getting locked, which otherwise may be

invested elsewhere in a profitable manner and at the same time if there is

inadequate investment, it results in shortage of funds and day to day

activities may come to a standstill.

Working Capital analysis depends to a large extent on the study of

each asset independently by calculating ratios, preparing fund flow

statements etc. this techniques help in scientific decision-making process or

in deciding the efficiency in utilizing working capital. Thus the problem

taken for study is “Working Capital Analysis”

The study shows a comparative analysis of the relevant ratios

concerned with working capital of KMF.

.

REFERENCE PERIOD:-

The period covered under this is five financial years i.e. from

2005-2006 to 2009-2010.

CONTEXT OF THE STUDY:-

The context of the study considers the following two important

facts which are very much essential for the study of Working Capital

Management in KMF.

Whether the Working Capital of KMF is sufficient or adequate.

Whether the Working Capital is properly framed and utilized.



REAS O N FOR THE STUDY:-

The reason or motive for the study on the “Working Capital

Management” indicates the never ending requirements of the working

capital and its importance in the day to day business operations of the

business organization; either it may be a small scale or medium scale or

large scale enterprise.

Therefore, the reason for the study on the “Working Capital

Management” mainly focuses on ‘the advance of working capital and its

proper management during all the times’.

LIMITATIONS OF THE STUDY:-

The study covers a period of 3 years with the available sources i.e.

from 2007-08 to 2009-10.

10 weeks being a very short time, I have done a study that I feel to be

comprehensive and possible in this time. However, some other details

of methods of analysis could definitely be found which I have missed

out there.

The study has been restricted to the head office in Bangalore.

The study is general.

Inter firm and intra firm comparison is not possible.

Interactions with the company professionals were limited due to their

busy schedule.

Limitations of historical accounts.

Conclusions will be drawn based on theory and supplemented by

figure wherever feasible.



CHAPTER 3

COMPANY PROFILE



3. COMPANY PROFILE

INTRODUCTION

Mother Dairy a unit of Karnataka Milk Federation which is

located in Yelahanka in the Bangalore North Taluk, was established in a

total area of 28 acres during under of II with a processing capacity of two

lakh liters per day on 7.12.1984 later, the processing capacity of the diary

was expanded to handle 4 Lakh liters per day during 1993-94 with an

additional cost of Rs.3.64 Corers Total of investment for this project is

Rs.10.61 corers. The different facilities available at mother diary are mother

is procuring 2.4 lakh liters milk per day from kolar Milk sadali and

Gowribidnur are possessing bulk milk coolers, through road milk toners.

The Diary is processing and distributing on average 2.25 lakh liters of Milk

per day to the consumers in Bangalore city with the increase in demand for

liquid milk. It is planned to increase the processing capacity of the Diary.

Milk is highly nutritive and majority of Indian population rely on milk

for their protein supplement milk is obtained by milking well bread cows

and buffaloes, either manually or through sterilized milking machine milk

cream, cheese ghee, condensed milk of milk-protein are the dairy products

which are separated from milk through various process. The essence of

organizational study relates to Co-ordination of one department with area



ores in this organization Industrialization is taking place in such a rapid

place that the entrepreneurs or industrialists often forget to know the overall

functioning of all the systems of an organization in the most of corporate

objectives. This may be viewed all one of the reason where most of our

industries one becoming with day to day. The magic behind the successful

entrepreneur in this competition age lines in one detailed knowledge of one

functionary of the organization system.

BACK GROUND

In June 1974, an integrated project was launched in Karnataka

restructure and reorganizes the Diary Industry on the co-operative principle

and to lay foundation for a new direction in diary development. Work on the

first are World Bank aided Diary development was initiated in 1975.

Initially the project covered its southern districts of Karnataka and

Karnataka diary Development Corporation was setup to implement the

project corporation was setup to implement the project. The multi level,

multiunit organization will total vertical integration of all Diary

development activities was setup with cooperative societies at grass root

level, milk unions at the middle level and Diary development cooperation at

the state level as on apex body vested with responsibility of implementing



Rs.51 Corers project. At the end of September 1984 the World Bank aided

project ended and diary development activates continued under operation

flood- II.

The Activities were extended to cover the entire state except costal

taluks ultra Karnataka district and the process of diary development was

continued in the second phase form April -1984 as a successor to KDDC.

After the closure of operation flood. II, the diary Development activates,

which continued under operation flood-III ended on 31.03.1996. The spills

over works are financed by NDDB from 1.04.1996 under different terms and

conditions.

COMPANY OBJECTIVES

Karnataka milk federation (KMF) is a cooperative apex body in the state of

Karnataka representing dairy farmers’ organization and also implementing dairy

development activities to achieve the following objectives.

Providing assured and remunerative market for the milk produced by the

farmer members.

Providing quality milk to urban consumers.To build village level institutions

in cooperative sector to manage the dairy activities.



To facilitate rural development by providing opportunities for self

employment at village level preventing immigration to urban areas,

introducing cash economy and opportunity for steady income.

The Philosophy of dairy development is to eliminate middle men and organize

institutions to be owned and managed by the milk produces themselves,

employing professionals. Achieve economies of scale to ensure maximum

results to the milk producers at the same time providing whole some milk

producers at the same time providing wholesome milk at reasonable price to

urban consumers.

ORGANIZATION STATUS

At the End of March 2000, the network of Rs.8363 Diary co-operative

societies (DCS) have been organized and are spread over 166 taluks of the

total 175 taluks in all the 27 districts of Karnataka. These societies have

been organized into 13 milk unions. The unions are further federation there

are 38 chilling centers (Capacity 12.49 LLPD) 4 number of farm coolers

(Capacity 0.16) 17 number of liquid milk plants and two products diaries

for chilling and processing (21.20 LLPD) conservation (25TPD) and

marketing of Milk. To supply balanced cattle deed, three numbers of cattle

feed plants of 100 TPD capacity with mineral mixture production facility in



one unit are functioning to ensure supply of quality germ plasma, bull

breeding farm and frozen semen bank has been established and is well

stocked with exotic quality high pedigree bill. To impart training one central

training Institute and 3 regional training centers are functioning. Three

diagnostic laboratories have been setup for disease monitoring. Three folder

demonstration farms at sahapur, kottanahalli, kudige and one seed

production farm at sahapur are also operating out of the above units, 16

numbers of dairies, 3 numbers of training centers and 3 numbers of

diagnostic labs are operating under respective unions.

OPERATION STATUS

The average procurement of milk touched a peak of 20.28 LKPD in

November 1999. In March 2000 liquid milk sales was at the level of 15.2

LLPD. The sale of cattle’s feed was 110605 tons during the year 1999-2000.

The turnover of the organization during 1999-2000 was Rs.998.39 Corers.

GENERAL Benefits of frontier technology are made available at framers

these hold sophisticated technology such as artificial insemination electronic

milk testing equipment, electronic mass media Technology, veterinary

biological etc. Are already being made available and further a pilot project

for embryo transfer at field level has been taken up in 1991 and about 237



embryos have been implanted. The project now has been transferred to

Kolar Milk Unions, The activities cove prelusion of complete range of

inputs for basic milk production, processing facilities and marketing

facilities and marketing facilities. A special programmed for control of FMD

was implemented A progeny-testing scheme is also taken up to support

breeding activity. A herd book recording society known as Karnataka

Holstein Friesian Breeders Association (KAHFBA) has been established in

March 1991. With the active

KARNATAKA MILK FEDERATION (KMF)

The Role of Milk Federation

The Karnataka Co-operative milk producers federated Ltd.,

came into existence on 1/5/1984 by federating the milk unions in the state

and thus forming the state level apex organization. The federation is

implementing the project activities. The federation is implementing the

project activities when all the project activities are completed, the main role

of the federation will be to market surplus milk products and to produce and

supply centralized inputs.



FEDERATION FUNCTIONS

Presently Mother Diary and Nandini Milk Products at Bangalore are

under the control of KMF fair cattle feed plants, a central training Institute

and centralized testing and quality control laboratory are functioning under

the direct control by KMF Co-operation of activities between the unions and

developing marketing in the area if union. The federation manager surpluses

and deficiencies of liquid milk amongst the member milk unions. However

the federation organizes marketing of products. The major quality of the

milk is sold as liquid milk. This apart other products like butter, Ghee, SMP,

Peda flavored milk, Burfi, Panner, Khava, Jamoons, Mysorepak, Badam

powder and Ice cream are also sold. Nandini Good Life pure Cow Milk with

an ambient shelf life of 45 days has been introduced by adopting ultra high

temperature treatment technology. The products are sold under the family

brand name of Nandini. The federation organizes marketing of liquid milk

and products outside the state. Excellence in quality is maintained to lay a

solid foundation for widespread acceptance of Nandini Products. This will

ensure an assured market for the ever increasing milk production Balanced

cattle feed, by pass cattle feed. Mineral mixture frozen semen straws and

liquid nitrogen are produced by the federation and supplied to the unions.

Training and development senior management personnel, acquiring and



applying all new relevant technologies prescribing quality guidelines and

norms are also the functions of the federation.

MILE STONES

1955 - First Diary in Karnataka set up at Kudige, Kodagu

Dist.08.01.1955.

1965 - Biggest diary in Karnataka with 1.5 lakh liters per

Day liquid milk processing factory.

Set up in Bangalore on 23.02.1981

Expansion date 01.02.1981.

1974 - World Bank aided Karnataka Diary

Development project implemented 19.06.1974.

1974 - Karnataka Diary Development Corporation

(KDDC) is born .11.01.1974.

1975 - First spear head team is positioned 01.07.1975

1976 - First Registration of Union 23.11.1976

1980 - Karnataka Milk products Ltd. Established 01.3.1980

01.3.1980

1982 - First Milk product Diary started at Gejjalagere,

Monday 12.06.1982



1983 - Corporate brand name Nandini given 13.02.1983

a) First cattle feed plant commissioned at Rajanukunte

21.03.1983.

b) Capacity Expanded form 100 Mtr to 200 Mtr

01.06.1997.

1984 - Bull Mother form and frozen semen Bank

Commissioned 01.01.1984. Operation Flood II

Implemented 01.04.1984 to 30.09.1987.

Operations flood II Implemented 01.04.1984 to

30.09.1987.

Karnataka milk federation is born 01.05.1984 KDDC

transformed into KMF into KMF 01.05.1984 KMPL

assets transferred to KMF 01.02.1984 product Diary

Dharwad Commissioned 12.09.1984 Mother Diary

Started functioning 01.12.1984

1985 - Remaining government dairies transferred to KMF

14.02.1985.

1987 - Operation Flood- III implemented 01.04.1987

Dairies at Hassan, Tumkur and Mysore transferred to

district milk unions 01.06.1987.



1988 - Dairies at Bangalore Gejjalagere, Dharwad

Belgaum and Mangalore transferred to district milk union

01.09.1988 training centers at Mysore Dharwad Gulbarga

transferred to Unions 01.12.1988.

1989- Centralized marketing organized 01.05.1989 last milk

shed registered as a union (Raichur) 12.12.1989 milk

supplied to Kolkata Mother Dairy through railway

tankers from mother dairy, Bangalore 03.03.1989.

1991 - Karnataka Holstein Friesian Breeders Association

(KHAEBA) Registered 25.03.1991.

1992 - Commercial production and marketing of

NANDINI flavored milk launched September 1992.

1993 - Milk procurement on single day cross million Kg

Level in December 1986 and average milk procurement

per day for the year crosses million Kg level 1991-1992.

1994 - Liquid Milk sale crosses billion liters per day

February 1994.

1995 - Varieties of new Nandini Products Viz, Nandini

Panner, Burfi, Kava and sweet curds launched December

1995.



1996 - Foundation stone lay for cattle feed plant at

Hassan 09.02.1996 production stated 09.09.1998.

1996 - Foundation stone laid for mega Dairy and new

Powder plant at Bangalore, Mini Dairy schemes and

other development programmed 01.11.1996.

1997 - Inauguration of Ice Cream manufacturing unit at

Mother Dairy premises Bangalore 12.06.1997

1998 - Launching new products Jamoon Mix –March 1998.

1999 - Tetra Fino Packaged Nandini “Good Life Milk March.

2000 - Badam Powder -17.01.2000

Besan laddoo Sept 2004 Good life High fat milk Dec 2000 Nandini Goodlife Slim May 2002 Good life 200ml Tetrabrick July 2002 Good life 1 ltr Tetra Brik July 2002

2000 - MOU agreement signing by GOK & NDDB for implementation of Perspective Plan.2000 - Chilling Centre of 150 TLPD capacity at Hosakote started in Bangalore Union.2000 - “Mega Dairy” started functioning in Bangalore Union.2001 - Starting of Sales Depot at M'lore in addition to Depos at B'lore, Hubli & Thirupathi.2002 - Adoption of “Mnemonic Symbol”

In Bangalore, D.K. & Mysore in Shimoga & Dharwad



2002 - Release of 50gm. SMP in metalized Polypack.2002 - Registration of KMF website as “www.kmfnandini.coop”.2002 - ‘Nandini Shop on Wheels' started (Mobile display cum sales vehicle).2002 - Release of Urea Molasses Brick(3Kg Pack)2002 - Powder plant of 30 MT capacity started at Mother Dairy.2004 - MOU agreement signing by GOK & NDDB for implementation of Perspective Plan 2010.2005 - Laying of Foundation stone for 30 MTs Powder Plant at Channarayapatna.2005 - Launching of ‘Nandini Set Curd'.2006 - Packing Station commissioned at Kumbalgodu (Mandya Union).2006- Depos opened at Kerala (Kannur & Ernakulam).2006 - Foundation stone laid for New 300 MTs capacity at Hassan & Inauguration of Existing CFP expansion from 100 MTs to 200 MTs.2006-

Expansion of Gubbi CFP from 100MTs to 150 MTs. Expansion of Dharwad CFP from 100 MTS to 150

MTs.2006 - Release of new generation Drinks Tetra Pack variants of Flavored milk & Buttermilk.2007 - Release of Nandini Homogenized cow milk(3.5%Fat / 8.5%SNF) in Bangalore.2007 - Opening of“Nandini Dairy Farmers Welfare Trust” hostel.2007 - Launching of ”Bounce” brand milk at GOA.2007 - Inauguration of additional Infrastructure facilities for UHT milk production at Kolar from existing 40,000 LPD to 1.5LLPD.2008 - Commissioning of Channarayapatna Product Plant at a total cost of Rs. 72 Crores.

Launch of New products & new stunning packs (Sundae, Crazy Cone ice cream/Lite Skimmed Milk/ Cool Milcafe/Choco Milk Shake/Dairy Whitener)

Launch of Goodlife Slim in 1Ltr Brik.

2009 - Gulbarga Dairy & Milk Marketing taking over by KMF



QUALITY POLICY OF MOTHER DAIRY

Every employee of Mother Diary will strive to provide milk and milk

products of outstanding quality with competitive rates, prompt delivery and total

customers satisfaction.

ISO 9002 AND HACCP IS 15000 (HACCP) CERTIFICATE

Mother Dairy has obtained ISO 9002 and HACCP Certificate from Bureau of

Indian Standard (BIS) of government of India form December 2000. Mother

Dairy is the first and only dairy to secure the comprehensive certificate in the

entire south India.

The importance of obtaining this certificate is to:

Procure Manufacture & distribute the products under controlled set of

procedures as per ISO 9003.

To identify a probable occurrence of Hazard as during the process of

procurement manufacturing and distribution.

To identify the severity of Hazards during critical control point.

To control the Identified Hazards and to produce the products of

International food produce the products of international food safety

standards.



PRODUCT LINE

The Principle aim of mother dairy is to satisfy people with different tastes

and preference and income as such it has a broad product line satisfy the people

of different taste.

Toned Milk

Full Cream Milk

Curd

Butter

Ghee

Ice-Cream

Nandini Milk Products profile

This unit has specialized production of milk based ethnic sweets like Nandini toned milk

Nandini homogenized milk

Nandini full cream milk

Nandini milk products

Nandini curd

Nandini ghee

Nandini butter

Nandini paneer

Nandini Burfi

Nandini cheese



Nandini Mysore parkNandini PedaNandini BurfiNandini KhovaNandini Jamoon mix Nandini Badam powder Nandini Sugar free Peda Nandini BiteNandini chocolateNandini Bulk cheddar cheeseNandini Skimmed milk powder

1) Nandini Peda :-

Nandini Peda is a delicious treat for the family, made from pure

milk available in 250gms pack containing 10 pieces each.

Dharwad Peda Nandini Sugar Free Peda

2) Nandini Paneer : -

This is heated to a temperature of 65 degree centigrade for 30

minutes and maximum should be at 70%.

Diced Paneer


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http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/625a791b-f152-9b68-6ba0-00003cd51f2f_sugar-free-peda.j

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3) Nandini Burfi :-

The maximum moisture should be 13-14 % and acidity should be

0.35

Dry fruits burfi Coconut Burfi

5) Nandini milk powder: - Enjoy the taste of pure milk skimmed milk powder from pure mik,

processed and packed hygienically.

Skimmed Milk Powder4) Nandini mysorepark:-

Fresh and tasty, Nandini Mysore Park is made from high quality

Bengal gram, Nandini ghee and sugar cane. It’s delicious way to relish a

sweet moment.

Mysore Pak


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http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/54bd5d57-b50e-1908-bba0-00001d4145ae_coconut-burfi.j

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5) Nandini Gulab Jamoon mix:-

Gulab Jamoon mix is made from skimmed powder, Maida, soji, and

anadini special grade ghee.

Khova Jamoon

COMPETITORS :

The success of each and every business unit is mainly depending on

how brilliantly it faces the competitions Mother dairy is not out of completion it

has 80% market share in Bangalore & Presently it is the brand leader for milk

products. The main competitors to Mother Dairy are:

Heritage

Arogya

Good Morning

Swastik

ORGANIZATIONAL OBJECTIVE AND STRATEGIES

The First step in an organization is the assessment of its objective and

strategies i.e., what business are we in? And at what level of quality do with wish

to provide or service? Where do we want to be in the future? It is only answering


http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/7b9fae0d-f8f8-13e9-6275-00006049120f_khova-jamoons.j


there and other related questions that the organizational must assess the strengths

and weakness of its human resources.

NEEDS ASSESSMENT: Needs assessment diagnosis present problems and

future challenges to be meet through training and development organizations

spend vast sums of money (Usually as a percentage of turnover) on training and

development. Before committing such huge resource organization would do well

to assess the training needs of their employees organizational that implement

training programmers without conducting needs assessment may be malign

errors.

TRAINING AND DEVELOPMENT OBJECTIVES

Once training needs are assessed, training and development goals

must be established. Without clearly set goal, it is not possible to design a

training and development program and after it has been implemented, there

will be no way of measuring its effectiveness. Goals must be tangible

verifiable, and measurable. This is easy where skills training are involved



KMF Officers

SRI.A.S.PREMANATH - MANAGING DIRECTOR , KMF

Name DesignationPlace of working

A.S.PREMANATH DIRECTOR (ADMN) KMF CORAVIKUMAR KAKADE DIRECTOR (MKT) KMF COMUNIRAJU DIRECTOR (AH) KMF COC.NARASIMHA REDDY DIRECTOR (R&D) KMF CODR:M.N.VENKATARAMU DIRECTOR (C.T.I) KMF COD.SRINATH ADNL DIR (MKT) KMF COSURESH G MUDDE BIHAL

ADNL DIR (FIN) KMF CO

K.S.BHISEDr.BERNAD EARNESTDr.D.N.HEGDE

ADNL DIR (ADMIN/PUR)ADNL DIR (FEEDS)ADNL DIR (AH)

KMF COKMF COKMF CO

B.NATRAJ ADNL DIR(Q.C) KMF COH.MUNAVAR AHMED,KCAS

JOINT DIR(RL 441), CO-OP AUDIT

KMF CO



UNION CHIEFS

NAMEDESIGNATION

PLACE OF WORKING

DR. V.LAXMAN REDDY

.DBANGALORE MILK UNION

DR.K..SWAMY M.DTUMKUR MILK UNION

K.L.GAJENDRAN M.DKOLAR-CHIKKABALLAPURA MILK UNION

P.D.HAMPALI M.DBELGAUM MILK UNION

RANGANATH. B.P M.DHASSAN MILK UNION

DR.T.GURULINGAIAH M.DMANDYA MILK UNION

T.KUMARA SWAMY M.DMYSORE-CHAMARAJNAGAR

CHANDRASHEKARA NAYAK

M.DDAKSHINA KANNADA

DR. T. PRASANNA M.DRAICHUR-BELLARY-KOPPAL

DR.K.RAMACHANDRA BHAT

M.DDHARWAD MILK UNION

DR. SURESH BABU M.DBIJAPUR-BHAGALKOT

DR. G T GOPAL M.DSHIMOGA MILK UNION

DR. H.N.SUDHAKAR M.DGULBARGA MILK UNION



UNIT CHIEFSNAME DESIGNATIO N PLACE OF WORKING

H.N.SUBBUSWAMYK.V JAGANNATHA RAODR. R.MAHESH

DIRDIRA.D

MILK PRODUCT PLANT,CHANNARAYAPATNAMOTHER DAIRYNANDINI SPERM STATION

Y.GOPAL G.MCATTLE FEED PLANT, GUBBI

MOHAMOHD ISMAIL G.MCATTLE FEED PLANT, RAJANUKUNTE

P.V.MOHAN KRISHNA G.MCATTLE FEED PLANT, DHARWAD

D.VIVEK G.MCATTLE FEED PLANT, HASSAN

SURESH KULKARNI G.MNANDINI MILK PRODUCTS

V.RAJESHWAR GM POUCH FILM PLANT

K. MAHADEVAIAH J.DTRAINING CENTRE, MYSORE

P.S.BELLUNKI I/C J.DTRAINING CENTRE, DHARWAD

N.HANUMESH G.M GULBARGA DAIRY



Know Your Milk: -

Importance of milk

Milk is nature's ideal food for infants and growing children.The importance of milk in our diet has been recognized since Vedic times, and all modern research has only supported and reinforced this view. In fact, milk is now considered not only desirable but essential from the time the child is born. The baby is recommended to be breast-fed until it is weaned and thereafter given cow/buffalo/goat milk till he or she reaches 12 years of age.

The National Institute of Nutrition has recommended a minimum of 300 gms daily intake of milk for children between 1-3 years of age and 250 gms for those between 10-12 years.

MILK DEFINITION AND ITS COMPOSITION



Milk may be defined as the whole, fresh, clean, lacteal

secretion obtained by complete milking of one or more healthy milk animals, excluding that obtained within 15 days before or 5 days after calving or such periods as may be necessary to render the milk practically colostrum-free and containing the minimum prescribed percentages of milk fat and milk-solids-not-fat. In India, the term 'milk', when unqualified, refers to cow or buffalo milk, or a combination thereof. Milk SNF means Milk Solids-not-Fat, comprising protein, carbohydrates, vitamins, minerals, etc in milk other than milk fat.

ESSENTIAL NUTRIENTS IN MILK

Milk is almost an ideal food. It has high nutritive value. It supplies body-building proteins, bone-forming minerals and health-giving vitamins and furnishes energy-giving lactose and milk fat. Besides supplying certain essential fatty acids, it contains the above nutrients in an easily digestible and assailable form. All these properties make milk an important



food for pregnant mothers, growing children, adolescents, adults, invalids, convalescents and patients alike.

Milk is a powerful nutrition package containing nine essential nutrients including calcium, protein and potassium. Milk is the perfect beverage for today's kids and teens.

Calcium :- Milk and dairy products are an important source of calcium. Apart from bone health, Calcium also plays vital role in blood clotting, nerve conduction, muscle contraction, regulation of enzyme activity, cell membrane function and blood pressure regulation.

Protein: - Milk is a good source of low-cost high quality protein, which is readily digested. This protein is important for a number of bodily functions-vital to brain development and the growth of body tissues.

VitaminA:- Maintains normal vision and skin. Helps regulate cell growth and integrity of the immune system.

Vitamin B-12 : -Essential for the growth and health of the nervous system. Linked to normal activity of folic acid and is involved in blood formation.

VitaminD : -Promotes the absorption of calcium and phosphorus, and influences bone mineralization, the strengthening of bones.

Potassium: - Regulates the body's fluid balance and blood pressure. It is also needed for muscle activity and contractions.

Phosphorus :- Helps generate energy in the body's cells and influences bone mineralization, the strengthening of bones.

Niacin:- Keeps enzymes functioning normally and helps the body process sugars and fatty acids. It is also important for the development of the nervous system.

Riboflavin :- Helps produce energy in the body's cells and plays a vital role in the development of the nervous system.



CLASS AND TYPE OF MILK

Dairies in India have to market milk by standardizing, as per the various types of milk prescribed under Prevention of Food Adulteration Act. These type of milk differ in their Milk fat and Milk SNF contents.

Raw milk procured from villages, contain numerous pathogenic and spoilage bacteria. These microorganisms, if allowed to grow, multiply at logarithmic rate and produce many toxins and enzymes and spoil milk. Hence milk is processed by heat treatment in dairies.

Various types of heat-treatment given to milk are as below –

1. Pasteurization –



The term Pasteurization has been coined C or below. In this process, pathogenic and spoilage

organisms are destroyed. Normally pasteurized milk is packed in sachets and shall be stored under refrigeration conditions, so as to prevent the growth of remaining organisms in milk. Pasteurized milk has a shelf life of 2 days when stored and transported under refrigeration conditions. This milk is boiled and consumed in Indian homes.C for 15 seconds (or to any temperature-time combination which is equally efficient), in approved and properly operated equipment. After pasteurization, the milk is immediately cooled to 6after its inventor, Louis Pasteur of France. Pasteurization refers to the process of heating every particle of milk to at least 72

2. Sterilization -

C for minimum period of 15 minutes. After heating, sterilized milk bottles are gradually cooled to room temperature. Due to economic disadvantages and browning of milk, this process is



used only for bottled flavored milk. This Sterilized milk has a shelf-life of not less than 3 months, even at room temperature, and can be consumed directly.Sterilized milk is manufactured by filling into bottles and heating bottled milk to not less than120

3. Ultra High Treatment (UHT) –

C for 4 seconds and cooled instantly which retains all the vitamins and nutritional value of milk providing zero bacteria product which needs no boiling. The milk is packed in 6 layer tamper proofed Tetra-pack packaging which prevents the milk from spoilage due to sunlight, bacteria, germs and oxygen, thus ensuring freshness and purity of milk packed. The milk can be stored without refrigeration for 60 days in fino-packaging and 120 days in brik packaging.During the process of UHT, milk is heat-treated to temperature of 137

KMF has introduced four UHT milk variants in the market, viz.,Nandini Good life



(3.5% Fat, 8.5%

SNF), Nandini Full Cream Milk (12% Fat, 9% SNF),

Nandini Smart (1.5% Fat, 9% SNF) & Nandini slim (with less than 0.5% fat and 9% SNF) catering to diverse groups of consumers, including health conscious consumers.

4.Homogenization –

Any of the above class and type of milk may be homogenized. Homogenized milk is milk which has been treated in such a manner as to ensure break-up of the fat globules in milk to such an extent that after storage no visible cream separation occurs on the milk. Milk is homogenized using a high-precision & expensive equipment known as Homogenizer, which consists of a high pressure piston pump to force milk at high pressures (and velocity) through a narrow opening between the homogenizing valve and its seat; the fat globules in the milk are thereby sub-divided into smaller particles of more uniform size. Cream layer formation does not take place in homogenized milk.

Milk pack, that is available in the market, contains printed details about the type of heat-treatment that the milk contained in the pack has undergone – Pasteurized / Sterilized / Ultra High Treated (UHT); the class of milk as per PFA Act – Toned / Double Toned / Full Cream Milk / Cow Milk / Buffalo Milk / Skim Milk; if any other processing –



Homogenized, etc. For instance, if Toned Milk is pasteurized and also homogenized, it is designated as “Pasteurized Homogenized Toned Milk

CATTLE FEED PLANTS: Cattle Feed being an important input to milk production is manufactured in four plants viz Rajanukunte, Gubbi, Dharwad & Hassan plants. Together they have production capacity of 700 tons per day and produce feed in 3 varieties namely Bypass, Type I and Type II along with Urea Molasses Brick (UMB). These plants are ISO 9001:2000 certified and has a combined capacity utilization of more than 100%.Gubbi unit produces quality Mineral mixture and sells in 1 Kg retail packets to farmers at concessional rates.Cattle Feed Plant, Rajanukunte, Gubbi, Dharwad and Hassan.

The combined Production capacity of all 4 plants is 700MT with capacity Utilization of more than 140%.

All 4 Plants are ISO 9001:2000 certified. Three varieties of Feed along with Urea Molasses Brick at

Rajankunte & Mineral Mixture in Gubbi Plant are produced.

NANDINI MILK – MILK FOR EVERY AGE GROUP



NANDINI Milk is available in a variety of forms that are differentiated by their milk fat and other solids contents. Nutrition Facts on milk sachets can help you make choices for your family. Nutrition facts provided is for 100 ml of milk.

Organization Chart

The organization is three tiered on Co-operative principles. A. Dairy Co-operative Societies at grass root level. B. District Co-operative Milk Unions at single / multi district level. C. Milk Federation at State level. All above three are governed by democratically elected board from among the milk producers. Under the direction of elected boards, KMF, various functional Units & Unions are performing the assigned tasks to ensure fulfillment of organization objectives.



Human Resource Development

There are at present 20.35 Lakh dairy farmers as primary members including 3.5 Lakhs of SC/ST and 6.6 Lakh woman members.Dairy Co-operatives employ more than 32000 people and 5200 are permanent KMF Units and Unions employees.Indirect employment thro' veterinary services, milk transportation, milk sales etc. activities is to the tune of 52000 people.This sector has also created demand and employment in manufacturers of equipments required by DCS, Dairies and printing. Quality and Food Safety

During the last ten years, the Federation is giving greater emphasis on procuring quality milk from DCSs under the concept of “Quality Excellence from Cow to Consumer.” Many Clean Milk Production (CMP) initiatives have been implemented at all the stages of procurement, processing and marketing. Among these CMP initiatives, noteworthy initiative is the setting up of Community Milking Parlours in villages. The KMF is forerunner to introduce this innovative technological initiative for bringing about revolutionary improvement in quality of milk collected in DCSs. This system has several advantages such as elimination of mastitis in milch animals and improvement of productivity. The milk from milking machines, collected through Automatic Computerized Milk Collection Units is chilled directly in Bulk Milk Coolers. This chilled raw milk, untouched and unadulterated by human hands, has very high microbiological quality, comparable to international standards. This high quality milk is being



utilized for manufacturing high quality value added milk products, for both domestic as well as international markets.Other Clean Milk Production (CMP) Initiatives include: -

Training of milk producers on modern dairy husbandry practices and CMP. Providing SS utensils, antiseptic solutions for udder cleaning on pre and

post milking, etc. to producers. Training to DCS staff and officers of the Unions on CMP. Replacing Aluminium milk cans and collection vessels with SS –304. Posters, documentary films and booklets on Clean Milk Production.

BANGALORE URBAN AND RURAL MILK PRODUCERS DISTRICT CO-OPERATIVE SOCIETIES UNION LIMITED.

(Bamul - Bangalore Dairy)The garden city turned into the silicon capital of India has made rapid strides in dairy activity.From 50,000 Liters a day 4 decades back under UNICEF, today it is a 8 Lakh Liters/ Day, State-of- the- art plant expandable to 10 Lakh Liters/ Day.It covers 12 talukas with more than 1782 Societies functioning.Hoskote on the out skirts of the city boasts of a 1.5 LLPD chilling plant, capacity comparable to many dairies in the State. A new dairy of capacity 2LLPD is also being commissioned here.Specialty of the Union: Fully computerized Dairy with no human handling of milk with the distinction of having highest procurement and highest sale of milk by any dairy in Karnataka.

MOTHER DAIRY, A UNIT OF KMF

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 Liters to 7 Lakh Liters 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 Liters per day. Presently, it is undertaking manufacturing and co-packing of 'Amul' brand of ice cream for GCMMF. Mother Dairy has a network of 616 retailers through whom milk is sold to the consumers. Further, it has satellite modern format joints to sell various verities of milk and 'Nandini' brand of long shelf life and short shelf life milk products numbering around 50. The sale joints are branded as "Nandini Milk Shoppe". Also, cold chain network which is a prerequisite for sale of milk and milk products has been established in 4 strategic locations of Bangalore city as "Walk in cold store" to ensure un-interrupted and constant milk supply to our retailers/consumers.

The Dairy is poised to add 4 more varieties of exotic ice creams including pro-biotic, sugar free in the near future and also would undertake manufacturing of very improvised quality of Paneer, Yogurt as well as flavored milk in bottles. Plans are also under way for automated production of above milk products in the immediate future. There is a plan drawn up for putting in the market ready-to-eat foods "Retorted" and having appreciable content of milk and milk products. The same is planned to be introduced in the mid of 2010. The exclusiveness of Mother Dairy is because of: • Mother Dairy cares for quality, hygiene and food safety and hence the dairy was certified for certified for ISO 9001-2000 during the year 2000 and has been certified for ISO 22000-2005 during 2008.• The Dairy has Export License for Skimmed Milk Powder, Whole Milk Powder, Dairy Whitener, Ghee and Butter.• The Dairy has embarked on Environmental Protection, Energy Conservation Program me and have been suitably recognized by Bureau of Energy Efficiency, Government of India and KREDL, Karnataka.• Time being the essence of working Mother Dairy has brought the activities under LAN by adopting appropriate technology.• Any business enterprises assessed for its status on the financial performance and Mother Dairy fully believes in this philosophy and has constantly posted positive financial results ever since its existence.



INTEGRATED BUSINESS PLAN:-

Preparation of Integrated Business Plan in consultation with the

Division Heads. Integrated Business Plan is prepared after taking into

consideration the various experience, growth demand and supply, export or

import policy of the Government, Government legislations on various

issues, statutory levies, geographical conditions – particularly because we

deal with agro based perishable commodity. Since the market is volatile and

also market conditions. Hence, preparation of Integrated Business Plan

meticulously is a very important task for the Federation.

Source of income :-

The main source of income for the Federation is as under:-

Direct income on account of sale of milk and milk products at Mother

Dairy - one of the units of the Federation

Conversion income at Mother Dairy i.e., if the surplus milk received

at Mother Dairy is being converted into Skim Milk powder, for which

specified amount is charged and hence the conversion amount.

A certain amount of profit on sale of cattle feed by the Federation

earns 4% as service charges.

Costing :-

The Federation does not have a pre-determined costing system

because most of the time the fixation of selling price of milk depends on



various factors like competitor’s entry in to the market, their pricing of the

products, and interference from the Government etc. Because of these,

costing does not play a role in decision making; that is the reason the

member milk unions and Federation sometimes lose heavily on crude

method only to assist the Management in certain decision making.

Computerization :-

The Federation has computerized all its financial activities right from

generation of receipts, vouchers, invoicing, generation and submission of

information to the Management. The Federation has also succeeded in net

working of the finance sections so that the information flows easily and

speedily.

As regards Mother Dairy, the entire Dairy activities right from

reception of milk to the dispatch of milk has been totally computerized and

is working with oracle system. The Federation is planning to upgrade the

existing system to the present level or activities.

Distribution of Profits:-

The Finance Division after complying with the provisions of

Karnataka Co-operative Society’s Act and Byelaws of the Federation

submits all its proposals to the Board for distribution of dividend and bonus

to members on yearly basis. For the first time, the Federation has declared

dividend and bonus for the year 2001-2002 and is continuously doing from



then onwards. KMF gets financial assistance by itself through various

transactions and during extreme and contingencies it gets from National

Dairy Development Board (NDDB) for a period of 10 to 15 years. This

NDDB is located at Anand in Gujarat.

NANDINI HI TECH PRODUCT PLANT

1.0 Back ground:

The milk procurement by the co-operatives in Karnataka has steadily increased over the years due to the efforts and policies favoring milk production. Existing infrastructure of the milk co-operatives in the state was found to be insufficient for handling the excess milk.In order to meet the increased processing requirement, Karnataka Milk Federation (KMF), in consultation with National Dairy Development (NDDB), conceived to setup a product dairy of 400 TLPD with 30 MTPD powder plant in the year 2005. It was decided to set up the plant at Channarayapatna, Hassan Dist (Karnataka), a strategic location to handle the surplus milk of Hassan, Mandya, Mysore and Tumkur milk unions.The project was entrusted to NDDB on turnkey execution basis.

2. Salient features of the project:

Infrastructure: The project has been setup in a 22 Acres of land, beside national

high way NH-48 (Bangalore-Mangalore) Estimated cost of the project is Rs 6942.64 Lakh out of which 20%

is borne by KMF and remaining is loan from NDDB. State of the art automation technology (DCS / Scada) for milk

processing and powder manufacturing and energy efficient equipment and machineries adhering to HACCP standard.

Fully automated refrigeration plant using environment friendly ammonia liquid over feed system with ICE silo.



Milk storage facility : 600 KL Cream storage: 60 KL Butter storage: 580 MT Ghee storage: 150 MT Effluent treatment plant using environmental friendly

anaerobic technology.

3.0 Processing Capacity:

Milk processing: 400 TLPD Milk powder Production: 30 MTPD Butter Production: 21 MTPD Ghee Production : 5 MTPD

4.0 New Project commissioned on 09.04.2011

Installation of Nandini UHT Milk Processing and packing facility of 1,00,000 Ltrs/ Day Capacity.

Includes facility for packing Nandini UHT milk in 500 ML, 200 ML Fino and 200 ML Brick packs.

Includes facility for packing Nandini Flavored Milk in 200 ML Packs. This Project is aimed to address ever growing Market demand of

Nandini UHT Milk.

Mc KINSEY’S MODEL WITH REFERENCE TOKARNATAKA MILK FEDERATION

The Seven S framework first appeared in “The Art of Japanese

Management” by Richard Pascale and Anthony Athos in 1981. They had

been looking at how Japanese industry had seen so successful, at around the

same time that Tom peters and Robert Waterman were exploring what made

a company excellent. The seven S models were born at a meeting of the four

authors in 1978. It went on to appear in “In Search Of Excellence” by peters



and Waterman, and was taken up as a basic tool by the Global Management

consultancy McKinsey: it sometimes known as the McKinsey 7S Model.

McKinsey and Co’s 7S Framework provides a useful framework for

analyzing the strategic attributes of an organization. The McKinsey

consulting firm identified strategy as only one of the seven elements

exhibited by the best-managed companies.

1. SHARED VALUES (SUPER ORDINATE GOALS)

Shared Values or Super Ordinate Goals refer to the long term of an

organization. “Hard Minds” refer to the financial performance of an

organization. According to Pascale an enterprise that cannot generate a profit

is not adding enough value to perpetuate its right to exit, but when short-

term profits are over emphasis, a company’s long-term competitive position

can be sacrificed. Hard- minded values are tied to goals that are

unambiguous and quantifiable.



2. STRATEGY

Strategy is the Systematic action and allocation of resources to

achieve company aim. It also refers to the determination of the purpose and

the basic long-term objective of an enterprise and the adoption of course of

action and allocation of resources necessary to achieve these aims.

3. STRUCTURE

The structure of the organization is basically a network of authority

and responsibility, which has been assumed by and delegated to the

employees. Organizational structure defines the pattern of formal

relationship of superior and subordinate. It may be regarded as network or

role, relationship, assigned work and delegated authority of employees. It

provides the basis on which the managers and non-managerial employees

perform the job assigned to them.

4. STAFF

Staff mainly refers to the people in the organization or enterprise.

KMF views people or employees as valuable resources wherein they

carefully nurture, develop, guard, and allocate them, they believe in

transparency as the basis foundation for employing people.

5. STYLE

“Style refers to the way the management behaves and collectively

spends its time to achieve organizational goals or aims”.

KMF adopts various styles for the growth and welfare of the

organization like:-



6. SKILLS

Waterman Etal consider “skills” as one of the most crucial attributes

or capabilities of an organization. The term “skills” include those

characteristics, which most people use to describe a company.

Hindustan Lever is known for their marketing skills,

7. SYSTEM

A system in the 7S framework refers to all the rules, regulations and

procedures both formal and informal that complement the organization

structure.

KMF has its own system, rules and procedures to follow which help

the company to develop a talent pool with competence to take challenges of

present and future. The organization has its own information system,

manufacturing process and control process that aims to delight the customers

through good quality products, services and solutions.



CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION



ANALYSIS OF WORKING CAPTIAL IN KMF:-

The special factors that influence the Working Capital requirements of

the company are:-

Availability of raw materials.

Seasonal conditions.

Procurement of milk.

Animal Husbandry.

Development activities.

SOURCES OF WORKING CAPITAL:-

The organization deals with National Dairy Development Corporation

for finance to the society. It approaches Finance Department and even

NDDC for meeting working capital requirements.

RATIOS FOR WORKING CAPITAL MANAGEMENT:-



1) Current asset to Total asset : This ratio establishes the relationship

between current asset and total asset of the organization. It is used to

determine the quantum of current asset in total asset.

Current asset to Total asset:- Current Asset

Total asset

2) Current Ratio: This is the most widely used ratio. It is the ratio of

current assets to current liabilities. It shows a firms ability to over its current

liabilities over current assets. It is calculated as follows:

Current Ratio: - Current Assets

Current Liabilities

3) Ratio of Inventory to Working Capital: In order to ascertain that

there is no over stocking, the ratio of inventory to working capital should be

calculated as follows:

Ratio of Inventory to Working Capital: - Inventory Working Capital

4) Net Working Capital Turnover Ratio: This ratio shows the number

of times working capital is turned over in a stated period. The higher is the

ratio, the lower is the investment in working capital and greater are the

profits. However, a very high turnover of working capital is a sign of over

trading and may put the concern into financial difficulties. On the other



hand, a low working capital turnover ratio indicates that working capital is

not efficiently utilized. This ratio is calculated as follows:

Net Working Capital Ratio: Sales

Net Working Capital5) Gross Working Capital Ratio: It is the ratio of Net Sales to Current

Assets. It determines increase in the current assets to sales. Increase of

current assets to sales means under utilization to current asset.

Decrease of current asset to sales means approximate utilization of

current asset. It is calculated as follows:

Gross Working Capital Ratio: Net sales Current Assets

6) Asset Turnover Ratio: i) Current Asset Turnover Ratio

ii) Working Capital Turnover Ratio

These ratios measure the efficiency of a firm in managing and utilizing

its asset. The higher the turnover ratio, the more efficient is the management

and utilization of current assets or working capital, while low turnover ratio

are indicative of under utilization of available resources and presence of idle

capacity.

a) Current Assets Turnover Ratio: Cost of Goods Sold

Current Assets

b) Working Capital Turnover Ratio: Cost of Goods Sold

Net Working Capital



7) Operating Cycle : The cycle of conversion of cash into raw-materials

into work-in-progress, working-in-progress into finished goods,

finished goods into debtors and bills receivables, and debtors into cash

again is called Operating Cycle. The time involved in this cycle

depends upon the length of the cycle. The length of the cycle in turn

determines Working capital requirements. In case of manufacturing

concern, the working capital requirements are more because of the

longer length of operating cycle. In case of financial institutions, the

length of the cycle is short therefore less working capital

requirements.

It is advantageous for the organization if the operating cycle is

small as the funds involved in the cycle are less. It is calculated as

follows:-

Operating Cycle: Inventory Period + Accounts Receivables Period.



TABLE 1: Showing the components of Net Working Capital for 3 years in

KMF

(Rs. In Lakhs)

Particulars 2007-08 2008-09 2009-10

CURRENT ASSETS:-

Inventories

Sundry Debtors

Cash & Bank

Loans & Advances

2041.52

336.53

1637.40

8158.55

1687.75

620.51

2605.11

9916.12

1375.97

972.14

2719.05

9833.83

Total Current Assets 12174.00 14829.49 14901.00

CURRENT LIABILITIES &

PROVISIONS:-

9708.87 12660.83 12754.40

Total CL & PROVISIONS 9708.87 12660.83 12754.40

Net Working Capital 2465.13 2168.66 2146.60



2007-08 2008-09 2009-101900

2000

2100

2200

2300

2400

2500

2009-10

2008-09

2007-08

TABLE 2: Showing the composition of Current Assets to Total Assets for 3

years (Rs. in Lakhs)

Particulars 2007-08 2009-10

Current Assets

Total Assets

12174.00

17683.41

14829.49

16084.48

14901.00

19566.50

Percentage 68.84% 92.19% 76.15%



2007-08 2008-09 2009-100.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

2009-10

2008-09

2007-08

Interpretation :-

It is evident from the table that the composition of Current Asset to Total

Asset decreased from 2007-08 to there was a sudden increase in Current

Asset. It has recorded a highest of 92.19% in the year and a lowest of

68.84% in 2007-08.

TABLE 3: SHOWING THE CURRENT RATIO FOR 3 YEARS

(Rs. in Lakhs)

Particulars 2007-08 2008-09 2009-10

Current Assets

Current

Liabilities

12174.00

9708.87

14829.49

12660.83

14901.00

12754.07

Ratio 1.253 1.171 1.168



2007-08 2008-09 2009-101.12

1.14

1.16

1.18

1.2

1.22

1.24

1.26

2009-10

2008-09

2007-08

Interpretation:-

2:1 is considered as the standard for this ratio. From the table, it is

evident that in all 3 years the current ratio is far below the ideal level. The

company has recorded a highest ratio of 1.26:1 in 2007-08 and a lowest of

1.168:1 in 2009-10.

TABLE 4: Showing the net Working capital Turnover Ratio

(Rs. in Lakhs)

Particulars 2007-08 2008-09 2009-10

Sales

Net Working Capital

172910.41

2465.13

19085.00

2168.66

23306.88

2146.60

NWC Turnover Ratio 7.01 8.80 10.85



2007-08 2008-09 2009-100

2

4

6

8

10

12

2009-10

2008-09

2007-08

Interpretation :-

In the year 2007-08, the sale has increased by 8.38% when compared to

previous year, with decrease in net working capital by 37.43%, it represents

efficient use of net working capital in generating sales.

In the year , the sales has increased by 10.73% when compared to

previous year, with decrease in net working capital by 12.02%, it represents

efficient use of net working capital in generating sales.

In the year 2009-10, the sales have increases by 22.12% when compared to

previous year. It represents efficient use of NWC in generating sales.

TABLE 5: Showing the Gross Working Capital Ratio(Rs. in Lakhs)

Particulars 2007-08 2008-09 2009-10

Current Assets

Net Sales

12174.00

17290.41

14829.49

19085.00

14901.00

23306.88

Ratio 1.42 1.28 1.56



2007-08 2008-09 2009-100

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2009-10

2008-09

2007-08

Interpretation :-

In the year 2007-08, current assets are utilized efficiently to generate

sales. It is evident from that current assets have increases by 2.93% whereas

sales have been increased by 8.4%.

In the year, current assets have increased more than sales when

compared to previous year; this shows that current assets have been

underutilized.

In the year 2009-10, current assets are utilized efficiently to generate

sales. It is evident from the fact that current assets have increased by 0.48%

whereas sales have been increased by 22.12%.

TABLE 6: Showing Current Asset Turnover Ratio(Rs. in Lakhs)

Particulars 2007-08 2008-09 2009-10

Cost of Goods Sold

Average Current Asset

17204.42

12000.63

18229.12

13051.76

21526.23

14865.25

Ratio 1.433 1.396 1.448



2007-08 2008-09 2009-101.36

1.37

1.38

1.39

1.4

1.41

1.42

1.43

1.44

1.45

1.46

2009-10

2008-09

2007-08

Interpretation:-

From the table we can come to know that, the company is maintaining a

steady level of current assets turnover ratio for the past 3 years i.e. around

1.5 times. It has recorded a highest of 1.44 in 2009-10 and a lowest of 1.39 .

TABLE 7: Showing Working Capital Turnover Ratio

(Rs. in Lakhs)

Particulars 2007-08 2008-09 2009-10

COGS

Net Working cap

17204.42

2405.13

18229.12

2168.66

21526.23

2146.60



Ratio 6.979 8.405 10.02

2007-08 2008-09 2009-100

2

4

6

8

10

12

2009-10

2008-09

2007-08

Interpretation:-

The company is showing a steady increase of working capital turnover

ratio i.e. in last three years. It recorded a lowest of 6.97 times in 2007-08 and

a highest of 10.02 times in 2009-10.

TABLE 8: Showing Operating Cycle

(Rs. in Lakhs)

Particulars 2007-08 2008-09

Inventory Period

Account Receivables Period

1.187

0.372

1.227

0.30



Operating Cycle 1.559 1.527

2007-08 2008-09 2009-101.42

1.44

1.46

1.48

1.5

1.52

1.54

1.56

2007-08

2008-09

2009-10

Interpretation:-

The time to convert cash into cash by the company is around 45 days on

an average. The highest time taken to convert was 1.5 months in and lowest

being in the year 2006-07 i.e., 1.3 months.

ANALYSIS OF FINANCIAL STATEMENTS

1) Overall Profitability Ratio:- It is also known as ‘Return on

Investment’ (ROI) or ‘Return on Capital Employed’ (ROCE). It

indicates the percentage of return on the total capital employed in the

business. It is calculated by using the following formula:-



ROI= Net profit after taxes

Capital Employed

The term capital has been given different meanings by different

accountants. Some of the popular are as follows:-

Sum total of all the assets whether fixed or current.

Sum total of fixed assets.

Sum total of long-term funds employed in the business i.e.,

Share Capital + Reserves and Surplus + Long-term Loans – (Non-

business Assets + Fictitious assets)

Calculation of Return On Investments for the year ending 31 st March 2009

ROI = 747.60 *100 = 10.53%

7098.22

Interpretation:-

The organization is getting Rs. 10.53 for every Rs. 100 invested by it.

2) Gross Profit Ratio:- This ratio establishes relationship between gross

profit and net sales. Its formula is :-

Gross Profit Ratio:- Gross profit --------------- *100 Net sales



This ratio shows the margin left after meeting the manufacturing

costs. It measures the efficiency of production as well as pricing. It also

helps in ascertaining whether the average percentage of mark up on the

goods is maintained.

However, the gross profits should be adequate to cover the operating

expenses and to provide for fixed charges, dividend and building up of

reserves.

Calculation of Gross Profit Ratio for the year March 2010

Gross Profit Ratio = 1780.64 * 100 = 7.63%

23306.88

Interpretation:-

15-20% is considered as the ideal for this ratio. The organization has

earned a gross return of 7.63%, which is far below the ideal ratio. Hence its

profitability position is very poor.

3) Net Profit Ratio:- This indicated the net margin earned on a sale of

rupees hundred. It is calculated as follows:-

Net Profit Ratio:- Net operating profit -------------------------- * 100 Net sales



This ratio helps in determining the efficiency with which the affairs of

the business are being managed. In other words, it measures the overall

efficiency of production, administration, selling, financing, pricing and tax

management. An increase in the ratio over the previous period indicates

improvement in the operational efficiency of the business provided the gross

profit ration is constant. The ratio is thus an effective measure to check the

profitability of the business. However, constant increase in the above ratio

year after year is a definite indication of improving conditions of the

business.

A firm with high net profit can do better in the adverse conditions.

Similarly, a firm with high profit margin can make better use of favorable

conditions.

Calculation of Net Profit Ratio for the year March 2009

Net Profit Ratio = 679.54 * 100 = 2.91%

23306.88

Interpretation :-

5-10% is considered as the ideal for this ratio. The organization has

made a net return of 2.91%, which is below the ideal level. Hence, its

profitability position is not satisfactory.

4) Debt-Equity Ratio:- It is determined to ascertain the soundness of the

long-term financial position of the company. It is also known as

‘external-internal equity ratio’. It is calculated as follows:-

Total long-term debt Debt ----------------------------- Or --------- Shareholders’ funds Equity



This ratio indicates the proportion between shareholders funds (i.e.

tangible net worth) and the long-term borrowed funds. The ratio may be

treated as ideal if it is 1. In other words, the investor may take debt-equity

ratio as quite satisfactory, if shareholders funds are equal to borrowed funds.

However, a lower ratio say 2/3rd borrowed funds and 1/3rd owned funds

might also not be considered as unsatisfactory because some businesses

needs heavy investment in fixed, assets, that has an assured return on its

investment like public utility concerns. The lower the debt-equity ratio, the

higher is the degree of protection enjoyed by the creditors.

It is to be noted that preference shares redeemable within a period of

12 years from the date of issue be taken as part of equity. The numerator of

the ratio consists of all types of debt i.e., both short-term as well as long-

term

Calculation of Debt Equity Ratio for the year March 2009

Debt = Long Term Loans

Equity = Share Capital + reserves + P&L A/c

Debt Equity Ratio = 3204.01 = .7082:1

4523.94

Interpretation :-

1:1 is considered as ideal for this ratio. The organization’s debt equity

ratio is below the standard level; hence its long-term solvency position is not

satisfactory.





CASH MANAGEMENT

Cash, the most liquid asset, is of vital importance to the daily

operations of business firms. Its efficient management is crucial for the

solvency generally referred to as “Life Blood of a business Enterprise”.

The term Cash includes coins, currency notes, cheques and drafts held

by a concern in its hands and balances in Bank Account. Cash also includes

near cash assets {i.e., those assets which can be immediately converted in to

cash, whenever the need arise}, such as time deposits kept by a concern with

Banks and Marketable securities.

Cash as an essential element is necessary for the beginning and ending

of the Working Capital Cycle.

Motives of holding Cash:-

The various motives or reasons for the holding of cash are every

business concern are as follows:-

1) Transaction Motive.

2) Precautionary Motive.

3) Speculative Motive.

4) Compensation Motive.

1. Transaction Motive:-



Every business concern keeps certain amount of cash to meet the

routine business payments. The need to satisfy this motive arises from the

lack of perfect synchronization between cash receipt and cash payments.

Cash for this purpose can be invested in meeting securities.

2. Precautionary Motive:-

The company maintains some cash to meet unexpected cash needs

arising out of unexpected contingencies, such as sharp rise in prices of Raw

Materials, unexpected delay in the collection of receivables, Strikes, Floods

and natural Calamities etc., Cash for this purpose can be invested in very

short term securities which love the ready liquidity.

3. Speculative Motives:-

The Company holds some cash balance mainly to take advantage of

and opportunity payment of cash, to take advantage cash discount available

for prompt payment of Bills etc.,

4. Compensation Motive:-

Cash management means that the cash held by a concern is neither

excessive nor inadequate but is sufficient for meeting its requirements.

In short, it means planning and control of cash. Cash management is

the most important area of Working Capital Management. Proper care and

attention will be taken in to consideration while managing the cash affairs.

Objective of Cash Management:-

Cash management has certain basic objectives. They are:-



1. To meet the cash payments as per the payment schedule.

2. To minimize the amount locked up as cash balance.

ANALYSIS OF CASH MANAGEMENT IN KMF

The organization forecasts inflow and outflow of cash through cash

budget and Cash flow statements. It is included in the annual integrated

business plan comprising physical activities on monthly basis and

corresponding financial activities, monthly cash is also drawn.

The cash budget and cash flow statement is monthly reviewed and is

submitted by the P&L a/c to the board with variance reports of plan and

actual. The extent of variation between actual and budgeted cash flows

planned every month depends on market situations and in case of bulk milk.

Daily sales and purchases are the factors that cause such variations.

RATIOS FOR CASH MANAGEMENT:-

1) Liquid or Acid test or Quick ratio : This is the ratio of liquid assets

to liquid liabilities with its most liquid assets. 1:1 is considered as

ideal ratio for a concern because it is wise to keep the liquid assets at

least equal to liquid liabilities at all times. Liquid assets are those asset

that are readily converted into cash and will include cash balances,

bills receivables, sundry debtors and short-term investments.

Inventories and prepaid expenses are not included in liquid assets

because the emphasis is on the ready availability of cash in case not



included in liquid assets because the emphasis is on the ready

availability of cash in case of liquid assets. Liquid liabilities include

all items of current liabilities except bank overdraft.

This ratio is the ‘acid test’ of a concern’s financial soundness.

It is calculated as under:-

Liquid Ratio: Liquid Assets

Current or Liquid Liabilities

2) Absolute Liquid Ratio : Though receivables are generally more

liquid than inventories, there may be debts having doubt regarding

their stability in time. So to get an idea about the absolute liquidity of

a concern, both receivables and inventories are excluded from current

assets and only absolute liquid assets, cash in hand, cash at bank and

readily realizable securities are taken into consideration.

It is calculated as follows:

Absolute Liquid Ratio:-

Cash in hand\bank + short term marketable securities

Current Liabilities

The desirable norm of this ratio is 1:2

3) Liquid asset Working Capital : This ratio establishes the relationship

between liquid asset and current asset of the organization. It is used to

determine the quantum of liquid asset that is constituted in current

asset.

Liquid asset to Working Capital: Liquid Asset

Working Capital



4) Cash/Bank To Current Assets : This ratio shows the percentage of

cash and bank balance to current assets. The cash and bank balance is

important for meeting working capital. Cash and Bank balance to

current assets ratio indicates what amount of cash is locked in current

assets.

Cash/Bank to Current Assets:- Cash/Bank

Current Assets

5) Cash Turnover Ratio : It is a ratio between cash and cost of goods

sold or net sales. This ratio indicates the extent to which cash

resources are efficiently utilized by the organization.

Cash Turnover Ratio: Cost of Goods Sold

Cash

TABLE 1: Showing Liquid or Acid Ratio

(Rs. in Lakhs)

Particulars 2007-08 2008-09 2009-10

Liquid Assets

Current Liabilities

10132.49

97058.89

13141.25

12660.83

13525.03

12754.40

Liquid Ratio 1.043 1.037 1.060



2007-08 2008-09 2009-101.025

1.03

1.035

1.04

1.045

1.05

1.055

1.06

1.065

2009-10

2008-09

2007-08

Interpretation :-

The standard for liquid ratio is considered to be 1:1. In all the years

i.e., in between 2007 and 2009, the company has managed to maintain its

liquid ratio above the standard level, where is recorded a highest ratio of

1.060:1 in 2009-10 and a lowest of 1.037:1 in 2007., a very low ratio is also

not considered as wise because it is going to affect the day-to-day activities

of the company.

TABLE 2: Showing Absolute Liquidity Ratio

(Rs. in Lakhs)

Particulars 2007-08 2008-09 2009-10

Super-Quick Assets

Current Liabilities

1637.40

9708.87

2605.11

12660.83

2719.05

12754.40



Ratio 0.168 0.205 0.213

2007-08 2008-09 2009-100

0.05

0.1

0.15

0.2

0.25

2009-10

2008-09

2007-08

Interpretation:-

The organization is maintaining a stable level of cash of 0.20 paisa,

for each rupee of current liability obligation. Even then it is far below the

standard ratio i.e., 1:2. It has recorded a highest ratio of 0.213 in 2009-10

and lowest of 0.168 in 2007-08.

TABLE 3: Showing Liquid Assets to Working Capital for 3 years

(Rs. in Lakhs)

Particulars 2007-08 2008-09 2009-10

Liquid Assets

Working Capital

10132.49

12174.00

13141.75

14829.49

13525.03

14901.00

Ratio 0.8323 0.8861 0.9076



2007-08 2008-09 2009-100.78

0.8

0.82

0.84

0.86

0.88

0.9

0.92

2009-10

2008-09

2007-08

Interpretation :-

The purpose of this table is to know the amount of liquid asset

constituting the total current asset and thereby knowing the efficiency of the

organization to convert current asset quickly without loosing tits value. It

recorded a highest of 83% in the year 2007-08. As the company is

monitoring a very high percentage of current assets, we can say that its

ability to convert current asset to cash is high and it’s a good sign.

TABLE 4: Showing Cash/Bank to Current Asset Ratio.

(Rs. in Lakhs)

Particulars 2007-08 2008-09 2009-10

Cash/Bank

Current Asset

637.40

12174.00

2605.11

14829.49

2719.05

14901.00

Percentage 13.44% 17.56% 18.24%



2007-08 2008-09 2009-100.00%2.00%4.00%6.00%8.00%

10.00%12.00%14.00%16.00%18.00%20.00%

2009-10

2008-09

2007-08

Interpretation :-

The Company as a policy of maintaining cash position at 15% to 20%

of current assets. As in all the years, it is maintaining cash position in and

around the ideal level. We can say that organization if following effective

cash management policy.

TABLE 5: Showing Cash Turnover Ratio

(Rs. in Lakhs)

Particulars 2007-08 2008-09 2009-10

cost of Goods

Sold

Cash

17204.42

1637.40

18229.12

2605.11

21526.23

2719.05

Ratio 10.50 6.99 7.91



2007-08 2008-09 2009-100

2

4

6

8

10

12

2009-10

2008-09

2007-08

Interpretation :-

The cash turnover ratio has decreased in to 6.99 when compared to

precious years 10.50. In the year 2007-08, it has shown a drastic increase to

10.50.



CHAPTER 5

FINDINGS,

SUGGESTIONS and

CONCLUSIONS



FINDINGS: -

The company is maintaining a very high proportion of current assets

in total assets i.e. around 75%. In the year 2008-09, it was 92.19%

As the company’s current ratio is far below the standard level, it is

concluded that its short-term solvency position is very poor.

As the company’s net working capital turnover is quite high, it is

concluded that there is an efficient use of NWC to generate sales.

In the year 2009-10, the current assets are utilized efficiently to

generate sales.

As the company is maintaining a high working capital turnover ratio,

it is concluded that working capital/current assets are managed and

utilized more efficiently.

The liquidity of the organization is quite well since the organization is

maintaining Liquid ratio more than the ideal standard i.e. 1:1

Cash turnover ratio is showing a mixed trend. In the year 2009-10 the

cash reserve was efficiently utilized when compared to 2008-09

As the debtors are collected from time to time, we can say that the

company has sound collection policy.

In the year 2009-10, the stock is converted 1.05 times into sales,

which is far above the ideal level.



SUGGESTIONS:-

The company’s absolute liquidity ratio in all the years is far below the

ideal level. So the firm should take steps to invest more in super quick

assets.

The company should take some measure to reduce manufacturing /

operating expenses so as to increase Gross Profit Margin which in

turn increases Net Profit Margin.

Company should take steps to increase current assets, as the position

of worse in all the years, which will improve the short-term solvency

position.



CONCLUSIONS :-

The Mother dairy financial performance and working capital is good. As comparing last three years of balance sheet it is found that the profit is increased but the in the year 2007-08 it has increased due to many reasons and then the next year the profit is again increased. The overall financial and working capital position of Mother dairy is satisfactory but at the same time to make substantial growth the company has to utilize its full potential pertained to liquidity enhancement.

Mother Dairy is operating in Karnataka successfully from many years. They supply milk and other products in Karnataka. The financial position and its performance are sound.



ANNEXTURE



BALANCE SHEET AS ON 31.03.2009

PARTICULARS SCH NO As On 31.03.2010 As On 31.03.2009Sources Of FundsShare CapitalReserves & SurplusDeposit from GOI/GOKMagazine FundProfit & Loss Account

LoansSecured LoansUnsecured Loans

12

3

4.14.2

56292000.00328147776.02 33686971.87 2633476.73 67954712.07

215854197.40 104546855.52

52430000.00146468548.37 33686971.87 2601856.73 234589545.80

244341354.08 104546853.52

TOTAL 809115987.61 818665130.37Application Of FundsFixed AssetsInvestments

Current AssetsLoans & AdvancesCash & Bank BalanceSundry DebtorsInventoryLoans & Advances

56

78910

521900250.25 72555700.00

271905861.16 97214526.79137597140.37983383275.42

529244015.86 72553450.00

260511530.09 6205612.77168775053.39991612674.75

TOTAL 1490100803.74 1482950871.00Less: Current Liabilities & ProvisionsNet Current Assets

11 1275440766.38

214660037.36

1266083206.49

216867664.51

TOTAL 809115987.61 818665130.37



PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2009

PARTICULARS SCH NO As On 31.03.2010 As On 31.03.2009Expenditure

Salaries Wages & other BenefitsAdministrative ExpensesRent, Rates,Taxes,Licence & InsuranceSelling & DistributionInterest & Bank ChargesRepairs & Maintenance of VehiclesDepreciationNet profit transferred to Appropriation a/c

16

2021

2223

25

3220686.67

57596279.0146927596.85

35553184.9935779630.76

35134637.2067954712.07

36545710.99

36106665.01 9413998.44

41797593.14 1741550.33

37348862.0474760323.97

TOTAL 312986463.04 269815349.32

Income

Gross ProfitOther IncomeInt on Deposits & Advances

2627

178064883.47122916079.54 12005500.03

85587818.70175462119.23 8765411.39

TOTAL 312986463.04 269815349.32



PROFIT & LOSS APPROPRIATION ACCOUNT

DEBITReserve FundBuilding FundBad Dept FundCo-op Propaganda FundEmployee Benevolent FundResearch & Development FundTrade Fluctuation FundCo-op Education FundBonus to Milk UnionsDividend to Milk UnionsProfit Tfd To Balance Sheet

104488743.89 20164875.00 2419784.91 5646165.00 8065950.00 12098926.00

25042687.00 787936.00 52428678.00 3445800.00 67954712.07 234589545.80

TOTAL 302544257.87 234589545.80CREDITOpening Balance of P&L AccountProfit Tfd from P&L Account

234589545.80

67954712.07

159829221.83

74760323.97

TOTAL 302544257.87 234589545.80



KARNATAKA MILK FEDERATION LIMITED

MANUFACTURING & TRADING ACCOUNT FOR THE YEAR ENDED 31.3.2010

PARTICULARS SDHEDULE NO

As on 31.03.2010 As on 31.32009

Expenditure

Opening StockPurchasesProcurement TransportationChargesInter Unit Transfers Processing & Manufacturing ExpensesSalaries Wages & Other Benefits (80%)Gross Profit Carried to P/L Account

1213

1415

16

168775053.39 2015762855.73

123255420.42 109036989.29

128827450.69

178064883.47

204147815.091682906815.21

177351320.65 87948137.66

146182843.97

85587818.70

TOTAL 2733423720.94 2394118475.37

Income

SalesInter Unit TransfersClosing Stock

171819

2330688398.13 265138182.44 137597140.37

1908500136.18 316843285.80 168775053.39

TOTAL 2733423720.94 2394118475.37



MILK PRODUCTS: -

Milk

Pasteurized Toned Milk Shubham Milk

Nandini Double Toned Milk Homogenized Cow's Pure Milk

Good life Milk Good life Slim Milk

Sampoorna Standardized Milk Smart Double Toned Milk

Good life UHT Long Life Milk


http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/7973d513-1574-0109-a225-00005827e4d0_pasteurised-toned-milk-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/7537a716-196f-fd48-1a0d-000074f64baa_shubhamnew-big.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/32032416-0260-61a8-6310-00001102ddb0_pasteurised-double-toned-milk-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/1e96c88f-edb4-6be9-630e-00006802ed8b_homogenised-pasteurised-milk-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/3194ffd6-127c-37a8-1b03-000026f4c3d3_goodlife-milk-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/56ac07cc-d29c-7c89-ab14-000070b90364_goodlife-slim-milk-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/6d824088-e828-e609-d2b9-00002b0b8a34_sampoorna-standardised-milk-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/6d0ebf82-fa34-a7e9-02ad-000063d00195_smart-double-toned-milk-large.jpg


Curds & other fermented products

Yoghurt Curd

Butter Milk Premium Curd Large

Set Curd Sweet Lassi

Milk powder


http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/36fbd338-7344-8ea9-1bf5-000002ca850b_goodlife-uht-long-life--milk-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/11df476c-10ee-4e89-b33f-00007ca70d29_yoga.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/1b35fd0d-5ccc-0fc8-3ba6-000017f7552e_curd-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/3433422a-a82b-38c9-7b7e-00006006b35c_butter-milk-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/722ee5a8-ba15-fce8-abda-0000645f4284_premium-curd-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/348f1683-8ac0-5489-4acf-0000024aeb5b_set-curd-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/50ef6aff-1527-6529-a219-00003cf236eb_sweet-lassi-large.jpg


Dairy Whitener Skimmed Milk Powder

Badam-Powder

Ghee & butter

Ghee in Standy Pouches Butter Salted & Unsalted

Ghee In Bag Ghee in Pet Jar

Ghee in Sachet


http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/4a184628-4c67-35a9-123b-0000727aed30_products-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/31ae7a9a-f0dd-f768-4ad2-0000603e0254_skimmed-milk-powder-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/66e961be-c298-f4e8-ca6f-00000cf89c75_badam-powder-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/7ead7eea-2742-43a9-bb60-00002007c6e8_ghee-in-standy-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/25c0eec9-9365-2788-9a66-000040624b7a_products-butter-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/4a187a86-0c4f-57a8-db5c-00007dca4c77_ghee-in-bag-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/3e0058f7-31cb-1708-a311-000018afd9b2_ghee-in-pet-jar-large.jpg


Ice cream & Frozen Desserts

Crazy Cone Ice Cream Butter Scotch Chocolate Nandini Magic Strawberry

Pista Kulfi Chocó bar

Ice Cream Delightfully Tasty Anjir Ice Cream Delightfully Tasty

Chocolate

Ice Cream Delightfully Tasty Vanilla and Strawberry Ice Cream Delightfully Tasty Kaju Draksh


http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/197df4f7-4c8e-9289-fa00-00007d8cff20_ghee-in-sachet-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/2b003395-159a-5a49-0241-000078eeb8a0_crazy-cone-icre-cream-butter-scotch-chocolate-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/182daaad-9ae4-8768-abda-000000ea18fe_nandini-magic-strawberry-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/58a50609-fb04-8169-5b2a-00004727ceb3_pista-kulfi-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/20334a9e-2ecb-3868-c304-00007ee29c37_chocobar-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/1cf911c6-e01a-f228-120a-00000eaa5295_ice-cream-delightfully-tasty-anjir-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/2596a508-7a3b-fa08-1aa9-00005a1b307f_chocolate-large.jpg


Ice Cream Delightfully Tasty Mango Ice Cream Delightfully Tasty Kesar Pista

Ice Cream Delightfully Tasty Black Currant Nandini Sugar Free

Pro Biotic Frozen Food

Ice Cream Delightfully Tasty Butter Scotch Ice Cream Delightfully Tasty Pineapple

Dolly Stick Ice Cream Raspberry & Orange Ice Candy Mango


http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/24f77ee4-c9f8-c9c9-8388-000030f8c779_vanilla-strwabery-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/1bcf3e30-07f6-2ea8-a2b9-0000166c68fa_ice-cream-kaju-draksh-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/46979221-dc02-5629-ba5c-000073101c23_ice-cream-mango-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/66477935-71b7-4129-eb2b-00005a8f019e_ice-cream-kesar-pista-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/11fc8c27-9ba4-7448-2394-00005d9afece_ice-cream-delightfully-black-curent-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/72130a55-575d-0348-1a16-000011845243_frozen-food.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/1f4ee024-ac5b-d509-2ab6-000000c0225b_ice-cream-delightfully-tasty-butter-scotch-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/4a5cf66a-82fa-cec9-ba1f-00003ffe279a_ice-cream-delightfully-tasty-pineapple-large.jpg


Sundae Ice Cream Strawberry Sundae Icre Cream Butter Scotch

Ball Ice Cream Vanilla Strawberry Milk Sweets

Mysore Pak Gulab Jamoon

Khova Jamoons Dry Fruits Burfi


http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/7321707c-467d-ef28-43aa-0000492c39fd_dolly-stick-ice-cream--raspberry-&-orange-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/432ec20e-b004-cd09-ca60-0000260717da_ice-candy-mango-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/6a3d384e-93d6-9449-43c6-00007cb447bf_sundae-ice-cream-strawberry-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/073d841d-5ac8-4e09-ab97-000006499af2_sundae-icre-cream-butter-scotch-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/54331956-3e3e-3468-8aef-000021275cb3_ball-icre-cream-vanilla-strawberry-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/3c33dfb2-7185-7148-9adf-000031c8a781_mysore-pak-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/73925fe9-bb39-04c9-ebe5-000053630610_gulab-jamoon-large.jpg


Rossagolla Assorted sweets gift box

Nandini Bite Premium Badam burfi

Premium Besan Ladoo Premium Cashew Burfi

Pure Milk Elachi and Kesar Peda Pure Milk Peda


http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/7b9fae0d-f8f8-13e9-6275-00006049120f_khova-jamoons.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/43268e32-f5f1-64e9-6a87-00005d79787f_dry-fruits-burfi.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/745bbcae-3642-f5e9-6a54-00001f4c5aa2_rossagolla.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/7bd10ea1-089e-b228-3b34-000028b8fd75_assorted-sweets-gift-box.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/7aaffa0a-57da-0f89-c21e-00007e70ea03_nandini-bite-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/6813ccd5-4e3d-0329-32e9-00001d6c6741_premium-badam-burfi-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/100644ca-707f-f029-632b-00000bca4fc0_premium-besan-ladoo-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/2ba04eb3-a34f-b0c9-6254-00004b8b4a08_premium-cashew-burfi-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/12078f35-f770-3ee9-2bb2-00005aed82e9_pure-milk-elachi-and-kesar-peda-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/50839c95-45c5-8088-03c5-00003c598d40_pure-milk-peda-large.jpg


Other Products

Nandini Cream Cheddar Cheese

Nandini Sugar Free Peda Dharwad Peda

Flavoured Milk Pista Mango Strwaberry Flavoured Milk

Coolchoco Milk Shake

Flavoured Milks Gulab Jamoon Mix

Khova Kunda


http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/67b14ca5-3574-03e8-a308-000039ca1645_milk-cream.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/34c9310d-7039-cb28-7a0c-000044eee5e7_cheddar-cheese.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/625a791b-f152-9b68-6ba0-00003cd51f2f_sugar-free-peda.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/3cc2ff13-f56e-d629-d388-000003dcb1e6_dharwad-peda-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/07cc6e87-efe9-e609-b320-00006c23a480_flavoured-milk-badam-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/36e65805-becd-ef09-9be0-00004c5ff169_flavoured-milk-coolchoco-milk-shake-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/4404821c-418e-e6e8-33fb-00006a9a1cf6_flavoured-milks-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/73972d01-a2e3-bc28-8bff-000012de347e_gulab-jamoon-mix-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/1665157a-976a-fcc9-e2fb-0000321e6931_khova-large.jpg

http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/4f4428fa-6c06-6b28-3bf4-000030eb3894_kunda-large.jpg


Paneer

.


http://www.kmfnandini.coop/administrator/components/com_lightgallery/lightgallery/065cba1a-4b8a-84e8-8314-000070268d48_paneer-large.jpg


CHAPTER 8

BIBLOGRAPHY



BIBLOGRAPHY

SL NO NAME OF THE BOOK

AUTHORS NAME

PUBLICATIONS

1 FINANCIAL MANAGEMENT

Gupta Sharma Kalyani publishers

2 Management accounting

M.N Arora Himalaya publishing house

3 Financial management

B.S Raman United publishers

Annual Report of KMF Ltd

WEBSITES :-

www.kmfnandini.coop

www.diaryindustries.com

www.googlesearch.com


http://www.googlesearch.com/

http://www.diaryindustries.com/

http://www.kmfnandini.coop/



Documents

Project Report of KMF