0.

ANNUAL REPORT
IN THE YEAR 2021
AAVIN MILK
 TABLE OF CONTENT

CHAPTER PARTICULARS PAGE NO:

1. INTRODUCTION
INTRODUCTION
COMPANY PROFIL
VISION OF
COMPANY
MISSION OF
COMPANY
HISTORY OF
COMPANY

2. DEPARTMENT
ORGANIZATION
CHART
DEPORTMENTAL
ACTIVITIES

3. ANALYSIS AND
INTERPRETATION

4. CONCLUTION
 CHAIRMAN SPEECH

HAPPY MORNING,
My dear shareholder Iam happy to welcome you all at the annual
general meeting on behalf of board of directors, thank you all your presents and your support
to the success of our the company. Director and circulated accounts for the year 2021 has
been calculated and circulated and I will take a look with you present here. I am very glad to
report the performance of our company, during the year 2021 has been very good and well
profitable deposits the slowdown in work progress.
OPERATION FOR THE YEAR 2021;
 Hear I present our company financial result of the year.
 Achieved total income of Rs 2 crore during the year reflecting the growth of 28.77
percent than previous year.
 Profit before tax is Rs 600 crores higher then the previous year.
 Sales has increased by 94.55 percent with revenue from domestic.
 Bonus pay out has been increased by 30percent compared to last year.

The trust and confidence of our shareholder and employees have vital in our journey of
steady growth and improvement . Finally I thanks all of our customer, partners,
shareholders, employees, suppliers, and for the society for continuous support.

Your Trustfully,
CHAIRMAN.
 INTRODUCTION

PRODUCT PROFIL

Milk is nutrient rich food that provides a large number of nutrients

relative to the calories consumed milk is delicious as a beverage and can be used as a for
other drink such as hot chocolate.
The milk of domesticated animals is also an important food sources for
human. Most milk consumed in Western countries is from cows; other important
sources include sheep, goat, water buffalo, and camels. Milk is essential an emulsion of
fat and proteins in water, along with dissolved sugar, minerals [including calcium and
phosphorus]. And vitamins. Particularly Vitamins B complex. Commercially
processed cow’s milk is commonly enriched with vitamins A and D. Many countries
require pasteurization to product against naturally occurring and artificial introduced
micro-organisms. Colling further prevent spoilage. Fat from whole milk [about
3.5%fat content] can be removed in a separator to produce cream and leave low level of
-fat milk [2%fat ]or skim milk [0.5%fat ]. Milk is usually homogenized, forced under
hight pressure through small opening to distribute the fat evenly. It may also be
condensed, or dehydrated for preservation.
TONED MILK
It is a method of milk, developed in India of treating buffalo milk by adding
skim milk and water to buffalo milk . this process decreases the fat content, increase the
quality of available milk and tones up the non fat solids level to the original amount.
The cost of the milk is reduced making it more widely available and not a luxury
purchase.
DOUBLE TONED MILK
It is a similar product where the fat content of milk is reduced 1.5% of and
the non fat solids content increased to 9%. This product is the produced by UNICEF
for free distribution to homeless youth and low income families. Unlike single toned
milk doble toned milk is always pasteurized.
STANDARDIZEDMILK
It is a product whose fat and or solids non fat content have been adjusted to
a certain pre-determined level. Under the PFA rules [1976] the standardized milk for
liquid consumption should contained a minimum of 4.5% fat and 8.5% SNF through
the country.
FULL CREAM MILK
Full cream milk also called whole milk is usually given to child teenagers and
anybody builders. The milk is called so because it contains all the milk fat without
adding or removing anything.
On average contains 3.8% milk fat and no less than 3.2% milk fat .Its
pasteurized and homogenized also know as full cream or whole milk it has a rich and
creamy texture. The Reduced fat milk has approximately 2% of milk fat and have
extra protein and calcium.
OTHER BY -PRODUCT
In September 2017 Aavin announced that it would be launching seven
varieties of milk based sweet product.
1. Butter
2. Milk – khoa
3. Ghee
4. Ice-cream
5. Milk cake
6. Milk power
7. Curd and butter milk
8. Gulfi
CONPANY PROFIL
Aavin is a milk product brand name of Tamil Nadu Co-federation Limited. It is
a an Indian diary company, which headquarters is in Chennai Tamil Nadu India.
VISSION OF THE COMPONY
 To march forward with a missionary zeal this will make Aavin a
trailblazer of exemplary performance and achievement beckoning
other Milk federation in country in pursuit of total emulation of its
good deeds.
 To ensure prosperity of the rural product who are ultimate owner of
the federation.
 To promote producer oriented viable co-operative society to impart
an impetus to the rural income , dairy productive and rural
employment.
 To bridge the gap between price of milk procurement and sales
price.
 To develop business acumen in marketing and trading disciplines so
as to serve consumer with quality milk, five a fillip to the income of
the milk producer.
  To compete with MNCs and Private Dairies with better quality of
milk and milk product and in the process sustain invincibility of co-
operatives.

MISSION OF THE COMPANY

“Heralding economy, social and cultural Prosperity in the lives of our
milk producer member by promoting vibrant, self -sustaining and holistic co-operative
dairy development in Tamil Nadu State”.
HISTORY OF DAIRYINDUSTRY
Milk is nutrient rich food that provides a large number of nutrient
relative to the calories. Consumed milk is the delicious as a beverage and be used as a
base for other drinks such as hot chocolate. The milk of domesticated for the harvesting
of processing of animal milk mostly from cows or goats, but also from buffaloes, sheep,
horses, or camel for human consumption. A dairy is typically located on a dedicated
dairy farm or in a section of a multi-purpose farm that is concerned with the harvesting
of milk with industrialization and urbanization, the supply of milk become a
commercial industry, with specialized breeds of cattle being developed for dairy, as
distinct from beef or draught animals. Initially, more people were employed as milkers,
but it soon turned to mechanization with machine designed to do the milking. While
most countries product produce their own milk products, the student industry varies in
different parts of the world. Dairy industry in India is crucial for the socio- economic
development of our country owing to its income and employment generation potential.
There is a tremendous change in the dairy industry before and the after liberalization,
As a part of economic reforms, dairy industry liberalization in 1991. The cooperative
milk processing plant with were earlier protected through government policies get
exposed to open competition from uncertain monsoon and damage supply management
etc. become the key challenges. For the healthy growth of generate healthy cash flows.
Considering the rising income ability to adapt to the market changes.
To have healthy and strong growth of milk producing sector, the
financial management. Futuristic and sound financial management decision are based
on the use and application of financial tool and techniques which helps in the managing
the financial resource.
Financial manager should anticipate future risk and devise strategies to
overcome obstacles in the organization which enhance the accuracy of predicting future
and take advance signals to navigate their business. In this highly complex, competitive
and dynamic words the survival and growth of the business become difficult. Financial
executives are pressurized to create value and contribute positively in the profitability
of businesses. The modern finance manager expected to be innovative, creative and
futuristic executive to manage the financial position of the business to meet the short-
term and long-term requirement of all the stakeholder without losing his focus from the
organization goals. It is the duty of the company particularly the profitability positions,
sales position, solvency position, utilization of capital and assets efficiently.
THE ORGATION STRUCTURE OF AAVIN
 GENERAL
MANAGER

ASSISTANT GENERAL
DEPUTY MANAGER[DIARY]
MANAGER[ADMIN]

ASSISTANT MANAGER DEPUTYMGR[ACCOUNTS] DEPUTY MGR [ADMIN]

DEUPTY MGR[QUALITY
DEPUTY MGR [LAB] EXECUTIVE OFFICER EXECUTIVE OFFICERS
CONTROL]

LAB ASSISTANT FACTORY ASSISTANT

OBJECTIVE OF THE COMPANY

 To provide assured supply of milk and milk product of good quality
standards to the consumer in the area of operation.
 Village has surplus of milk it was the necessary that al the milk has to be
utilized to be properly. So this was the reason why the cooperative society
were started in village level. The remining milk from the village sold to the
union.
 To provide marketing facilities for the raw milk produced by the dairy
farmers who are affiliated to village diary cooperatives and to provide all
necessary facility like supply of balance cattle feed , artificial insemination
and health cover…, for milk production development and for good quality
milk production towards the economic upliftment of the rural milk
producers.
MAJOR SECTOR THE COMPANY
The union has the four major sector. They are,
 1. Personnel management department
 2. Marketing department
 3. Quality department
 4. Production department
INTUSTRY PROFIL:
 The department of Diary dairy development in Tamil Nadu was set up in the
year 1958. The Tamil Nadu development cooperation limited was formed in the July
1972 to manage the activity such as milk procurement processing and marketing of the
milk and milk products. Based on the Anand patten developed by Dr . Kurien, Tamil
Nadu co-operative milk producer federation was formed in 1981 as an apex body of
three tries cooperative set up in Tamil Nadu and the district level milk producer union
were formed in the year 1982. The Foundation of milk cooperative Movement lies un
the conviction that the country’s society -economic development is intertwined with
development of rural India. Tamil Nadu rank among the top ten state with a daily milk
production of 206 lakhs lit per day and fourth among the state Co-operative with a daily
average procurement of 33.23LLPD in 2018-2019. The per capital availability of milk
in Tamil Nadu has increased from l169gm day in 1993-94 to 284 gm in 2018-2019. This
is due to increase in population the rise in the per capita income changing lifestyle food
habit and export opportunity contribution to the rise in the demand for milk and milk
product. To achieve the benefit of the attractive procurement price milk producers,
huge investment in diary infrastructure at all level starting primary dairy co-operative
societies, to state level federation. The dairy development department took over
control of the milk cooperative. It was 1981 On 1 February 1981 the company
commercial activity of the cooperative were handed over to the Tamil Nadu co-
operative milk producer federation limited which sold milk and milk products under
the trademark “AAVIN” , to improve the performance of the cooperatives. Tamil Nadu
is one of the leading state in India in milk production with about 145.88liters per day.
The commissioner for milk production and dairy development is the
head of the dairy department. H e is the function register in respect of dairy Co-
operative in the start. He also the Ex- officer managing director of Tamil Nadu
cooperative milk producer federation limited.ie…..”AAVIN”
The commissioner for the milk production and dairy development
exercise al the statutory power with regard to the registration of the society, supervision
, inspection, inquiry , liquidation of the milk cooperative including all district
cooperative milk production. The deputy milk commissioner at the state level and
25deputy level registrar at district level assist the commission for milk production and
dairy development is discharging the above legal responsibility. In order to utilize the
wide experience gained by officer of the department the post of the deputy milk
commissioner which was till then the occupied by officer on the department deputation
from the cooperative department was filled up by promoting the senior most deputy
registrars are functioning across Tamil Nadu and they discharge the statutory and
administrative function of the dairy cooperative. In accordance with the announcement
made by the Hon’ble Chief Minister in Tiruppur from 1.4.2013. Though the office of
the Deputy Register was established at the formed in 2009 the post of deputy register
was sanctioned by the government on the 10.20.2010.
 DEPARTMANT FUNCTION
1.COLLECTION OF MILK
Raw milk:
The milk is collected from many villages. The milkers give their milk
through dairy from situated on their village. Therefore both societies and milk givers
can earn money with some profit. The collection of milk which is directly gets from the
milk giver is knowns the Raw Milk. the milk can be collected at morning and evening.
DAIRY
PROCESSING FACLITIES:
The milk received at the chilling centers are brought to the dairy and
along with the milk received at the dairy , milk is processed for keeping the quality
Types of milk as standardized milk, high fat, high protein mil, and are being prepared
to the requirements of the consumers; the surplus fat is concerted into ghee. The whole
milk surplus is dispatched to the metro dairies and feeders balancing diaries viz
Madurai, Erode, and Trivandrum. The high fat and high protein milk are packed in
250ml and 500ml sachets. In the dairy milk ghee, ice-cram flavour milk, rose milk,
butter milk etc are being manufacturing and marketed. The processing capacity of the
main dairy, Kovilpatti CC, valliyyre CC , sakarankoil CC, and sathankulam CC are
100000 ;10000 ;20000; 50000;10000 LPD respectively.

TRANSPORTING:
The collected raw milk from the above branch dairy forms is chilled of
*C
above 4 and then the chilled milk is transported vehicle may have the double layered
freezer attached with them. Therefore the milk can be securely comes to the depot
without any air pollution.
PROCESS OF MILK:
In Tirunelveli depot processing the milk is the two type as described follows.
The process of pasteurization is carried out. Then, transported milk is streamed at
about 71*C and then chilling at 4* C to kill harmful bacteria.
Then the bacteria free milk is stored in stored in silo at 6* C These milk is
then packed in 1|4,1|2 1 lotter pockets and then stored of about 7*C. to 8*C Finally
these packed milk are distributed to various marked place for sales.
HOMOGRNIZATION:
In first the homogenization is a process that reduced the size of globules by
forcing pressurized hot milk through small whole causing turbulence the breakup the
larger fact globules so that they remain suspended rather then separating in a cream
layer at the top. Homogenization effects the development of atherosclerosis, coronary,
heart disease milk allergy, diabetes.
PASREUIZARION:
It is the process by which the disease causing bacteria in the milk are
destroyed without losing its nutritive values. The milk is boiled at 60*C for 30 minutes
and cooled are important.
Whatever the method is used for preservation of food, the
cleanliness and general sanitary condition are imported.
TO ACCESS THE QUJALITY OF THE MILK:
1. REDUCTION TEST :
It access whether the bacteria are present or not in the milk . The
bacteria are present it will the bacteria in the milk.
2. MBR Test
Lactase Test
It is used to determined the lactic acid concentration in milk and milk
product since its value has to be kept undern fixed law limited.
Chloride test
It is used to measure the quality of salt in difference dairy products.
Ammonia test
It is used to measure the ammonias concentration and it determine the
good quality milk. Ammo acid degradation of sort cheese.

PERCENTAGE OF FAT IN MILK :

The fat content in the milk is shown in the following table,
MILK FAT PERSENTAGE SNF PERSENTAGE
Toned milk 4.5 8.4
 Standardized milk 4.5 8.5
Double toned milk 2.0 9.0

THIS PIE CHART SHOWING FANT CONTENT IN THE MILK:

FAT

18%
TONED MILK
STANDARDIZE
41% DOUBLE TONED

41%

PRICE VALUE OF MILKPRODUCT:

PRODUCTS OLD PRISE IN RS NEW PRISE IN RS

BLUE 37.00 43.00
GREEN 41.00 47.00
ORANGE 44.00 51.00
MAGENTA 40.00 40.00
 THIS CHART SHOWING THE PRICE VALUE OF MILK PRODUCT.
60

50

40

30

20

10

0
BLUE GREEN ORANGE MAGENTA

OLD Rs NEW Rs

Following are the new variant have been introduced in 20 .04.2018

 1. Paneer-1\2Kg and 1Kg pack
2. Premium curd in 400gm cup
3. Cholate ripple ice cream 500ml
4. Strawberry ripple ice cream 500 ml
5. Sugar free ice cream 70 ml
6. Sugar free kulfi 100ml
7. Yoghurt in various flavour and sugar free yoghurt

ANALYSIS AND INTENPRINTATION

DATA ANALYSIS AND INTERPRINTATION

RATIO ANALYSIS

CURRENT RATIO:

Current ratio = current assets/current liabilities

CURRENT ASSET CURRENT CURRENT RATIO
LIABILITY
2015-2016 314067720.99 262457028.48 1.19664
2016-2017 344790975.21 64267305.57 5.36
2017-2018 279350158.58 68752714.57 4.06
2018-2019 233615122.76 73124272.57 3.19
2019-2020 369225357.1 266634123.90 1.38
 THIS CHART SHOWING CURRENT RATIO 2016 TO 2020
400000000

350000000

300000000

250000000

200000000

150000000

100000000

50000000

0
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

CURRENT ASSET CURRENT LIABILITY CURRENT RATIO

 CONCLUTION

 Study was able to gather information on financial recovery of the

company.
 Most of the study have been done at global level in multinational
companies. The aim of this research is to use one of time tested models of
determining financial soundness by testing it on a sample of 1 company
for insolvency proceeding and bring out the result.
 In doing so, the research reinforced the utility and suitability of the
diverse nature of insolvent company.
 In this research, estimate of financial soundness is done in Aavin -
Villupuram industry using Altman z-score analysis. Further by using the
same research methodology a research can analyse the financial stability
of other industry with more accuracy.

CONCULATION
Therefore it can be concluded from the analysis from of this
particular section that individual component analysis of Altman’s Z score model in
respect of dairy industry is not symmetrically providing identical result when we
attempt to analysis and compare trend in the individual components component of Z
score model under our study. this analysis of the result ultimately reveals that dairy
industry is in unhealthy zone……..
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