PROJECT REPORT

ON
INVENTORY MANAGEMENT OF VERKA MILK PLANT

LUDHIANA

MASTER OF COMMERCE

SUBMITTED BY:- SAMRIDHI SHARMA

UNIVERSITY REGISTRATION NO:-

UNIVERSITY ROLL NO:-

CLASS:- M.COM

SUBMITTED TO:- Ms. DIKSHA MALIK

REASON FOR SELECTING VERKA

The Ludhiana district co-operative milk union is verka milk

plant ; it is prestigious milk plant of Punjab. It is famous all over
the country and abroad for supplies of milk and milk products.

Verka provides great

Efforts to give a trainee a practical knowledge about different

subjects. They emphasis on practical training rather than
theatrical concept. I am lucky to get a chance to vomplete my
training as a trainee here. I got a project to ratio and trend and
trend analysis with co-operation. Their guidance and
cooperation to trainee is worth appreciation. Other side good
plant location, layout indoor and outdoor environment is
available.
 ACKNOWLEDGEMENT
I am highly indebted to the management of Verka Milk Plant
Ludhiana to undertake me as training in their organization. I
would like to thank specially to CA PALAK SACHDEVA(deputy
general manager accounts)for providing me an opportunity to
undertake training at Verka Milk Plant Ludhiana.

I wish to express my gratitude towards Mr. JASPREET SINGH for

permitting me to work under his guidance and cooperation. I
have no words to express my gratitude to the profound interest
taken by him at every stage of the project. His encouragement
and support made my target easily achievable. I would like to
thank other office and accounts staff of Verka Milk Plant
Ludhiana for their cooperation and helpful behavior.

I also thank my parents and friends who always have been

source of inspiration to me and supported me morally and
financially in every activity during the training.
 PREFACE

The most motivating aspect associated with pursing a course into one’s
personality & vision by accumulating wider knowledge developing
analytical & conceptual skills, not only by traditional way of teaching&
learning, but also by observing the things at work.

The assignment one gets in the form of projects, seminars, term papers
give a considerable exposures to students& provides them with an
opportunity to see the practical aspect of working or corporate world.
This assignment of ours is yet another opportunity for us to see the
application part of what we learn.

We would like to begin our research project on a thanking note to our

University& Institute for providing us with opportunity in the form of
and assignment on the topic “INVENTORY MANAGEMENT”.
 CONTENTS
 Chapter 1 : Introduction Indian dairy industry
 Dairy plants
 Milk feed Punjab
 Chapter 2 : Milk plant Ludhiana
 Management Board of Directors
 Chapter 3: Inventory Management of Verka
Milk Plant
 Chapter 4: Types of Inventories
 Chapter 5: Detail of store inventory in Verka Plant
 Chapter 6: Review of literature
 Chapter 7: limitations
 Chapter 8: Objectives of study
 Chapter 9: Research methodology
 Chapter 10: Suggestions
 Chapter 11: Finding Inventories
 Chapter 12: Conclusion
 Chapter 13: Bibliography
 CHAPTER 1

INTRODUCTION OF
INDIAN DAIRY
INDUSTRY
 INTRODUCTION
The dairy sector in the India has shown remarkable development in the past decade and India
has now become one of the largest producers of milk and value added milk products in the
world. The dairy sector has developed through co-operatives in many parts of the state. During
1997-1998, the state had 60 processing plants with an aggregate processing capacity of 6 million
lack liters per day. In addition to these processing plants and 45 co-operative milk chilling centre
operate in the state.
With the increase in the milk production. Maharashtra now regularly exports milk to
neighboring states. It has also initiated a free school feeding scheme, benefitting more than three
million school children from over 19000 schools all over the state.
INDIAN DAIRY INDUSTRY

Dairy is a place where handling of milk and milk products is done and technology refers to the
application of scientific knowledge for practical purposes. Dairy technology has been defined as
that branch of dairy science, which deals with the processing of milk and the manufacture of
milk products on an industrial scale.
In developed dairying countries such as the U.S.A, the year 1850 is seen as the dividing line
between farm and factory scale production. Various factors contributed to this change in these
countries, viz. concentration of population in cities where jobs were plentiful, rapid,
industrialization, improvement of transportation facilities, development of machines, etc.
whereas the rural areas were identified for milk production, the urban areas were selected for the
location of milk processing plants and product manufacturing factories. These plants and
factories were rapidly expanded and modernized with improved machinery and equipment to
secure the various advantage of large scale production. Nearly all the milk in U.S.A before 1990
was delivered as raw(natural) milk. Gradually farmers within easy driving distance began
delivering milk over regular routes in the cities. This was the beginning of the fluid milk-sheds
which surround the large cities of today. Prior to the 1850s most milk was necessarily within a
short distance of the place of consumption because of lack of suitable means of transportation
and refrigeration.
The Indian Dairy Industry has made rapid progress since Independence. A large number of
modern milk plants and products factories have since been established. These organized dairies
have been successfully engaged in the routine commercial production of pasteurized bottled
milk and various. Western and Indian Dairy products. With modern knowledge of the protection
of milk during transportation, it became possible to locate diaries where land was less expensive
and crops could be grown more economically.
In India, the market milk technology may be considered to have commercial in 1950, with the
functioning of the Central Dairy of Aarey Milk colony, and milk product technology in 1956
with the establishment of AMUL DAIRY, Anand. The industry is still in its infancy and barely
10% of our total milk production under goes organizational handling.

HISTORY OF INDIAN MARKET MILK INDUSTRY

Beginning in organized milk handling was made in India with the establishment of Military
Dairy Farms.

 Handling of milk in co-operatives milk unions established all over the

country on a small scale in the early stages.
 Long distance refrigerated rail-transport of milk from Anand to
Bombay since 1945.
 Pasteurization and bottling of milk on a large scale for organized
distribution was started at Aarey(1950), Calcutta(Haringhata,1959),
Delhi(1959), Worli(1961), Madras(1963) etc.
Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over India.
These were taken up with the dual object of increasing the national level of milk consumption
and ensuring better returns to the primary milk producers. Their main aim was to produce more,
better and cheaper milk.

DAIRY INDUSTRY IN INDIA

More than 2445 million people economically active in agriculture in the world, probably 2/3 or
even more ¾ of them are wholly or partly dependent livestock farming. India is endowed with
rich flora & fauna & continues to be vital avenue for employment and and income generation,
especially in rural areas. India, which has 66% of economical active population, engaged in
agriculture, derives 31%of gross domestic product GDP from agriculture. The share of livestock
product is estimated at 21% of total agricultural sector.
Contribution of livestock sector to gross domestic product ( Percentage contribution)
1950-51 1990-91
63.5 67.0
12.0 16.0
4.1 3.1
1.3 0.3
16.5 10.0

Live stock population:-

Number of animals(in thousands)
SHEEPS GOATS PIGS CHICKEN CATTLE
45000 119242 11780 435 194655
BUFFALOES HORSES MULES CAMELS
79500 990 1742 1520
MILK PRODUCTION
1950- 17 MILLION TONNES
1996- 70.8 MILLION TONNES
1997- 74.3 MT
(PROJECTED) 2020- 240MT
Sr. Constituents Buffalo Cow Goat Liquid Skimmed
no. Milk
1 Moisture(gm) 81.00 87.50 86.80 92.10
2 Protein(gm) 4.30 3.20 3.30 2.50
3 Fat(gm) 6.50 4.10 4.50 0.10
4 Minerals(gm) 0.80 0.80 0.80 0.70
5 Carbohydrates(gm) 5.00 4.40 4.60 4.60
6 Energy 117.00 67.00 72.00 29.00
Calories(kcal)
7 Calcium(mg) 210.00 120.00 170.00 120.00
8 Phosphorus(mg) 130.00 90.00 120.00 90.00
9 Iron(mg) 0.20 0.20 0.30 0.20
Expected to reach 220-250mt
India contributes to world milk production rise from 12-15%& it will increase
up to 30-35%
Milk Composition
INDIAN BUFFALOES: (DAIRY BUSINESS DIRECTORY 1996)
Buffaloes are classified into two categories:
1 Reverine (depending upon variation in their habitat &
genome) 2 Swamp
Swamp Buffaloes:- 48 chromosomes
South East Asian countries
Stocky animals, marshy land habitat
River buffaloes:-50 chromosomes
Massive in size and curled horns
Prefer to enter in clear water
India:-
Leading most buffalo populated country
78 millions most of reverine
Milk production: About 95% of world buffalo milk is produced in Asia &
pacific, while 64% is produced in India.
From 1950-1992 milk production in the world increased by 4.26%
Total bovine slaughtered (%)
World 17.1to 17.4% or -1.6% per annum
India 15% per annum
Asia 6.6%
Increasing trend of buffalo population in most of the Asian countries in Brazil
and Italy
PRODUCTION PERFORMANCE
Growth: The average birth wt(Indian Buffaloes) low 21 kg high 41 kg higher
in male calves than in females Average daily gain of 548 gm between 3-6
months 404 gm between birth to 36 months body weight at first calving ranges
from 367kg to 531 kg.
Higher growth rate in reverine breeds than swamp.
MILK PRODUCTION
PRODUCTION PERFORMANCE OF DIFFERENT BREEDS OF BUFFALOES:
DAIRY PLANTS
India’s modern milk supply goes back to December 15, 1950, when the Aarey milk
plant in Bombay launched the supply of pasteurized and bottled milk on large scale for
the first time in India. Subsequently, over the years, the share of the organized sector
increased after the launching of operation flood in 1970.
From an insignificant 200,000 liters per day milk processing in 1951, the organized
sector is presently handling over 20 million lpd in almost 500 dairy plants. Already,
one of the world’s largest liquid milk plants is located in Delhi, handling over 800,000
liters of milk per day. India’s first automated dairy. Mother dairy, Gandhinagar, was
commissioned at Gandhinagar near Ahmedabad, Gujarat , in Western India. It is
owned
by India’s biggest dairy cooperative group, Gujarat cooperative milk marketing
federation in Anand, with an annual turnover in excess of Rs.22 billion in 1999.
Dairy Plants Update:- India’s first vertical dairy commissioned
Amul-III – with its satellite dairies at Anand in Gujarat, with total installed capacityof
1.5 tone has been commissioned at Noida, outside Delhi, in 1999. It is owned and
managed by the Pradeshik Cooperative Dairy Federation limited, Lucknow in Uttar
Pradesh.
RESOURCES: DAIRY PLANTS
In this section Dairy Plants are listed alphabetically and region wise ,including liquid
milk plants and product manufacturers, both Western and indegenious, in the public,
cooperative and private sectors. The address, phone and fax numbers, list of products
manufactured and capacities and other details of these plants can be obtained from
DAIRY INDIA 1997 or from us.
VERKA – PUNJAB’S LEADING MILK BRAND
One of the leading dairy brands of North India, Verka is yet another contribution from
the state of Punjab. The flagship brand of the Punjab State Cooperative Milk
Producers’ Federation ltd, Verka is today enjoying the patronage of customers both
within and outside the country. Milkfed’s future programs can never be complete
without Verka. Verka is a brand leader in milk powders particularly in northern &
eastern sectors. The milkfed brand commands a premium price over milk powders
manufactured by competitors, which include multinational as well as private trade and
other cooperative federations.
Milkfed claims that Verka has carved a niche on the basis of the sheer strength of its
quality, freshness and purity.
Milkfed is serving nationwide consumers through a network of Regional offices and
strong distribution channels. Milkfed markets a wide variety of products, which
include liquid skimmed milk powder, whole milk powder, infant food, ghee, butter,
cheese, lassi, SFM, ice cream, malted food and Verka Vigor etc.The annual turnover
of milkfed has touched to Rs.450 crores.
Milkfed states that it has successfully leveraged on the brand equity of Verka to launch
new trends, needs, tastes and hopes. Verka brands included varied varieties of cheese
like the processed cheddar cheese, spread cheese and cheese singles. There are also
milk powders like Dairy Whitener, Skimmed Milk Powder and Infant Milk powder.
Health drinks like Verka Vigour, Verka Lassi, Sweetened Flavoured Milk and a
maongo drink called Raseela have also hit the markets. Milkfed has now come out
with Verka Curd and a whole lot of different flavours of ice-creams. Milkfed has also
made a foray into the international markets. They say that it was the domestic
competition that drove them to alien destinations. However, milkfed has already
established its ghee market in the Middle East Verka ghee reaches all the emirates and
is available in almost all super markets. In addition to ghee, SMP is also exported to
Asian countries like Philippines, Bangladesh and Sri Lanka. Verka Malt Plus is being
exported to Bangladesh also.
With Technology Mission Programs, ever widening markets and increasing exports,
Milkfed is preparing itself to take Verka to greater heights. The federation has planned
to introduce more value- added products like Tetra-Pack plain milk and low calories
lassi. It has also sought technical assistance from the Israel Dairy Board to initiate
breed improvement and milk production enhancement programme in the state.
Milkfed not only provides assured market to milk producers but also carries inputs to
enhance milk to their doorsteps. The District Cooperative Milk Producer’s Unions and
Milk Plants have attained self-sufficiency or are on the threshold of attaining it.
Milkfed has played a very vital role in providing a strong base for remunerative
price to the
producer; they get more money for their milk and payments are timely. In addition
technical input services in feeding, breeding and management are accessible. Value
addition is one of milkfed’s trust areas and the plants produce not only pasteurized,
homogenised milk but also buttermilk, cream, cheese, ice cream, butter and clarified
butter-oil(ghee) and several other products. The milk Unions have marketed milk and
milk products of the value of Rs.202.87 crore during the previous year.
It should be noted that the state government has recently announced a new project in
which 78 bulk milk coolers are to be installed by the central government at the level of
milk cooperatives in the districts of Ropar, Ludhiana, Gurdaspur and Patiala under a
centrally sponsored Scheme. For this purpose, the Government of India has already
released an amount of Rs.143.15 lakh for the installation of 24 bulk milk coolers for
implementation of this programme in Ropar District. This move is expected to help the
farmers to produce quality milk and get better farm gate price and consumers shall get
quality milk. The budgetary outlay for the programme is Rs.1.41crore. Milkfed is an
apex body at the state level. It has 11 milk unions at district level operating 10 milk
plants and more than 5000 cooperatives societies at village level with a total of 3 lakh
members.
Apart from the main arena of collecting more and more milk and enrolling more and
more milk producers. Milkfed and its units have a work force of about 5000
employees. Every morning and evening milk is lifted from the villages through private
vehicles- this means regular employment to about 600 transporters, most of the whom
are self employed. Some 10000 workers man the milk procurement and technical input
operations.
MILKFED-PUNJAB
The Punjab State Cooperatives Milk producers’ Federation Limited popularly known as
MILKFED Punjab, came into existence in 1973 to boost the dairy farming in the state
by value addition and marketing of produce on one hand and to provide technical
inputs to the milk producers for enhancement of milk production on the other hand.
Although the federation was much earlier, but it came to real self in the year 1983
when all the milk plants of the Punjab Dairy Development Cooperation Limited were
handed over to Cooperative sector and the entire State was covered under the
Operation Flood to give the farmers a better deal and our valued customers better
products. Today, when we look back, we think we have fulfilled the promise to some
extent. The setup of the organization is a three tier system, Milk Producers
Cooperatives Societies at the village level, Milk Unions at District level and
Federation as an Apex Body at State level. Milkfed Punjab has continuously advanced
towards its coveted objectives well defined in its byelaws.
First verka milk plant of the state was setup near the Amritsar. The brand name of Milk
and milk products was adopted as verka. Commissioning of the plants was done by
Dairy Development Corporation in 1974.
OBJECTIVES OF MILKFED
1. To provide remunerative prices to milk producers by value addition and
marketing of produce.
2. To provide technical inputs for enhancement of milk production on the other
hand.
3. To carry out activities for promoting production, procurement processing and
marketing of milk and milk products for economic development of the farming
community.
4. To produce and/or erect buildings, plants, machinery and other ancillary
equipment to carry out business.
5. To study problems of mutual interest related to production, procurement and
marketing of dairy and allied products.
 6. To establish research and quality control laboratories.
7. To make necessary arrangements for transfer of milk allied milk products and
commodities.
8. To market its products under its own trade name/brand name with its Member
Union’s Trade mark/brand.
9. To promote the organization of primary societies and assist members in
organization .
ACHIEVEMENTS OF MILKFED
On the basis of quality with efficient administration, MILKFED has not only
established new mile stone of providing services to Dairy farmers but scaled new
heights in delighting esteemed customers also.
1. MILKFED is providing technical input services like animal healthcare, supply of
quality cattle feed, fodder seeds etc. at the door steps of the dairy farmers under its
Productivity Enhancement Programme.
2. For producing quality technical services MILKFED has established its own cattle
feedplants having capacity of three hundred metric ton per day.
3. During the last 3 years, 8 Milk Plants and 2 Cattle Feed Factories of MILKFED,
Punjab were accredited with ISO9002 and IS-15000(HACCP) Certification.
4. In view of today’s interest of consumers in getting quality and safe products,
MILKFED is manufacturing quality milk and milk products as per International
Standards and also exploring the possibility of manufacturing milk products of
consumer’s choice.
5. MILKFED introduced liquid milk in new design packing with Mnemonic Symbol of
Cooperative Milk in all the District Milk Unions. MILKFED has launched its own
interactive Website on Internet for its prospective customers which can be accessed by
clicking http//www.milkfed.nic.in
TURNOVER
The annual turnover of milkfed which was Rs.1250 crore in the year 2011 has hit the
level of Rs 1438 crore in the year 2012.

EQUITY PARTICIPATION
The paid up equity of milkfed as on 31.3.2012 was to the tune of Rs.46.86
crores which comprises of Rs.28 crores from the cooperative member and
balance Rs.17.93 crores from State Government.

MILK PROCUREMENT NETWORK:-

Working on the “Anand Pattern” the process of organizing societies at village
level started in Punjab as early as 1978. Presently, there is strong network of
about 6155 Milkfed producers cooperatives societies organized at village level.
About 3.65 lakh milk producer members are attached to these societies. Fresh
milk is procured from the milk producers twice a day through village level
societies directly without the assistance of any middlemen.
INPUT SERVICES:-
It is one of the fundamental objectives of Milkfed to carry out activities for
promoting milk production in the State. In view of this, various technical input
services like veterinary health care, artificial insemination services,
vaccination, supply of VERKA balanced cattle feed and quality fodder seed
etc. are provided for enhancing milk production and economic development of
farming community.

CLEAN MILK PRODUCTION PROGRAMME:-

For improving quality of raw milk right from milk producers level, q massive
programme called “CMP” has been launched under which 195 Bulk Milk
Coolers have been installed in the societies and many more in pipe line.
Besides, more than 1000 Automatic Milk Collection Stations have been
provided to the societies for bringing efficiency and total transparency in the
system. Traditional manual method of milk testing at society level is being
replaced with Electronic Milk Testers.

WOMEN DAIRY PROJECT:-

Household level dairying is largely the domain especially in small and
marginal household families. In view of this fact, Milkfed has undertaken
Women Dairy Project in six Milk Unions namely Hoshiarpur, Ropar, Patiala,
Jalandhar, Ludhiana and Amritsar with an objective to empower rural women
in the field of dairy. This programme is being implemented under support to
Training & Employment Programme(STEP) with the assistance of government
of India. Under this programme, 390 women societies with 19860 women
beneficiary members will be organized.

SETTING UP OF COMMERCIAL DAIRY FARMS:-

In order to enhance the milk production and making the dairy farming a
profitable and sustainable profession. Milkfed has planned to establish at least
ten progressive big dairy farms in each Milk Union by arranging soft terms
loans from the banks.

PRODUCTIVITY ENHANCEMENT PROGRAMME:-

With a view to enhance milk production so as to reduce average cost per KG
of milk produced, Milkfed and its affiliated Milk Unions are providing
technical services like animal health care, artificial insemination services,
vaccination, supply of balanced cattle feed, supply of quality fodder seeds etc.
to specific target group i.e. Milk Producers Cooperatives Members at their
door step.

SCHEMES
 COMMUNITY BASED SILAGE MAKING IN KANDI AREAS :-
Milkfed initiated community based silage making to fulfill shortage of green
fodder in kandi area of Hoshiarpur & Gurdaspur. This will ensure availability
of green fodder in the shape of Silage during scarcity period. This will help in
improving milk production. 50 Silo pits of capacity 150 M.T. each will be
constructed during the year 2009-10 Rs.10.15 crore shall be given as capital
grant for construction of Silo pits, chaff cutters, weighing balance and training.
 FODDERSEED MULTIPLICATION PROGRAMME :-

Non availability of quality fodder seed was a major constraint. Milkfed

established its own automatic fodder seed production & processing unit at
Bassi Pathana of capacity – 15 MT/Day. There is currently a net deficiency of
35.6% green fodder,10.95% dry fodder in the country. By 2050, the demand
for green and dry feed will be 1012 and 631 million tones.
 PROVIDING MILKING MACHINES :-
To upgrade milking technology, Milkfed is providing milking mavhines to
dairy cooperative societies/ progressive dairy farmers at 50% / 25% subsidy.
Till date 450 Milking machines and 4 Milking Parlors hve been provided
against the target of 800 milking machines for the year 2009-10. Rs. 2.00
crores have been received from Govt. of Punjab as financial assistance. This
will improve Bacteriological quality of milk, hygienic conditions of teats of
animals and reduce stress to animals/ milkers and somatic cell counts.
 MARKETING & EXPORT:-
MILKFED PUNJAB is serving nation wide consumers through its net work of
Regional Offices and strong Distribution channels. MILKFED markets a wide
variety of products, which include Liquid Milk, Skimmed milk powder, Whole
milk powder, Dairy whitener, Ghee, Butter, Cheese, Lassi, Tetra Pack
Sweetened Flavoured milk, UHT milk in Tetra Pack, Ice Cream etc.
VERKA is brand leader in milk powders particularly in northern eastern
sectors and Skimmed Milk Powder marketed by Milkfed commands a
premium price over powders manufactured by competitors which include
multi-national as well as private trade and other Cooperative Federations.
Now Verka has arrived on
the sheer strength of its quality, freshness and purity. And of course, it’s
homemade taste at the most affordable price. To people today, Verka is the
part of their daily lives.
Milk fed, Punjab, is making available pasteurized milk packed and processed
under hygienic conditions at the doorsteps of the consumers. Keeping in view
the modern days human stress, strains and undernourished persons, those do
not get adequate Vitamin A&D from other sources, Milk fed felt its moral
responsibility to take care of their health by enriching Verka milk with Vitamin
A&D.
With competition in national market zooming up efforts to enhance export of
milk products have been made. Milk fed has established its ghee market in
Middle East market. Verka ghee reaches all the emirates and is available
almost in all the super markets. The penetration is so deep that verka ghee is
available in far off labor camps.

 FUTURE PLANNING:-
Punjab is the state, which has pioneered the green revolution in the country. It
is because of the efforts of the Punjab farmers that India now occupies an
enviable position of self-reliance in respect of food grains on the world map.
Consequent upon intensification of agriculture, Punjab agriculture has now
reached saturation level beyond which further growth appears to be limited.
This necessities a fresh look at the agriculture scenario prevailing in the state
so that the Punjab farmer who is very enterprising and is receptive to new
technology
continues to reaps the fruits of his labour without permanent damaging his
environment.
The programme aims at bringing a voluntary oriented programmes directly
benefiting the farmer of Punjab. Under the programme following schemes are
proposed for Dairy Development concerning Milk fed, Punjab:-

 Milk Production and Hygenic Quality Improvement Assistance.

 Modernization of Milk Testing
 Establishment of Method-Cum-Result Demonstrate Units
In the field of dairy development, Commercialized Dairy Farming for
producing more milk round the year of high quality was felt the only solution
for the viability of Dairy Industry in the present National and International
Dairy Scenario. It will help 70% rural population of Punjab in increasing their
income.
With the objective to accelerate the pace of Milk Production in the State of
Punjab and to improve the quality of milk right at the society level and to
increase the milk procurement to have 100% capacity utilization of Milk
Plants, a detailed Action Plan, vision 2004 has been prepared jointly by Milk
fed District Milk Unions and Cooperative Department spelling our there in the
various activities to be undertaken for Dairy Development in the State of
Punjab. The broad objective of the plan is to produce maximum milk of the
best quality at the least cost per liter, collect, store and transport it at least cost
in an idle way to be of best quality when received at Milk Plants dock to utilize
it for high standard value added products to earn maximum income and in turn
paying remuneration prices for raw milk to the Milk Producers. It is hoped that
with the
implementation of vision 2004 plan the number of Milk Producers
Cooperatives Societies will increase to 8000 from 5840 in March-2k and the
membership of these societies will increase from 3.38 lacks in March-2k to
4.75 lacks by the end of March-2004. Similarly the average milk
procurement will increase to
15.30 lack liters per day in the 2003-04 from 8.11 lack liters per day in 1999-
2k. the detailed investment proposals have been submitted to National dairy
Development Board for funding.
 CHAPTER-2
INTRODUCTION OF
VERKA PLANT
LUDHIANA.
COMPANY PROFILE (VERKA LUDHIANA)
Verka is a flagship brand of Milkfed and came into being in 1973 when
Milkfed was mandated for milk procurement, quality processing of milk and
its products and marketing of these products. Verka was christened after the
name of the place where the first plant was setup in
Amritsar. A trusted brand Verka has become a household name and is loved by
its customers for nutrition, quality and sheer indulgence. It has consolidated its
brand strength by not only retaining the high quality of existence products but
also by innovating and bringing new products to the tables of its diverse
customers.
GENERAL PURPOSE OF MILK PLANT LUDHIANA
NAME: Verka Milk Plant
ADDRESS: Verka milk plant Ludhiana
Punjab RAW MATERIAL: Milk
PRODUCTS: Pasteurized milk , kheer, ghee, table
Butter, curd, milk powder, cheese,
milk Cake, ice cream
WORKING HOURS: 24 HOURS (3 SHIFTS)
The elegant building situated on national highway just before we enter in
Ludhiana Punjab is that of Milk plant owned bt The Ludhiana District Co-
operative Milk Producers Union Ltd. Its foundation stone was laid by India’s
Home Minister Mr. Uma Shankar Dixit in 1973. It started its production in
1979.
Its name was registered as “The Ludhiana Distt. Cooperative Milk Producers
Union Ltd. Ludhiana . It has been registered under Punjab Co-operative
Societies Act 1961 on 24 March 1973. This union started its milk procurement
from March 1974.
This union is working under the laws of act. In the beginning 13 societies
became its members. But this union started as milk procurement from 1973.
Initially its office was situated on the upper side of Co-operative bank of
Ludhiana. At that time Milk Plant was not properly made. Initially the societies
of nearest circle were started, after this it was expanded and centers were
approved at other places. At that time this union collects milk from other
societies and to Horlicks. Before it, except Horlicks there was no major buy of
milk and Horlicks was a private concern giving low rates.
After that the union was strengthened and milk producers got benefitted by
this union as they were getting reasonable rates for their firm. A project report
of Milk Plant Ludhiana was made at that time with shares from different
societies were to be collected and it includes Rs.100 share money and Rs. 5
admission fees, 15 lack Rs were to be collected and in this manner and the
share of Government was fixed at Rs. 40 lack. For the smooth running of the
plant, the union had taken loan of worth Rs. 62 lack from Co-operative
development cooperation. By this loan a milk plant was established. It started
milk of 45000 liters per day in December 1979 further it was expanded with
the help of National Dairy Development Board at ANAND under the “
Operation Flood” programmed. After few years a drier was installed with a
capacity of 10 tones. For the purchase of this machinery 70% of loan was
taken from NDDB and
30% loan from government in the form of subsidy. The total investment in the
plant was 6.5 crores.
PLANT LAYOUT
In the milk plant there are hard receiving departments: Production and
Engineering. The location of the stores department is carefully planned out and
it is housed in a position which is very near to production department so that
transportation charges are minimum. It is also easily accessible to all other
departments like engineering, boiling, refrigeration, powder plant and
workshop.
The layouts of plants store is properly planned. There are shelves, racks,
admirals, and handling devices for keeping the material and equipments
properly. The store is divided into rack which are further sub- divided into
small spaces allotted. Special attention is paid to storage of material which is
liable to leakage or evaporation and deterioration.
SELECTION OF ROUTES:
Routes are selected for the delivery of kheer through these societies.
Shortest milk routes are preferable so that kheer reach to target market
in same condition, otherwise kheer can become sour. The societies
which are far away from milk plant, the four milk chilling centres are
established for them. Societies send milk directly to milk plant or
through chilling centers. These chilling centers chill milk at 4 degree
Celsius which keeps
the milk in good condition for 24 hours. After chilling the milk these
centers send milk to the milk plant.
REGISTRATION OF THE SOCIETY AND THE MEMBERS:
When a society is fully formed for the collection of milk it is registered under
the registration act of societies. Its members are also registered and given
members pass books and share certificates. A copy of rules and regulations are
also given to them. Then the actual milk collection starts.
MAIN CENTERS AND THEIR BRANCHES:
About 300 milk producing societies come under Milk Plant Ludhiana which is
operating in the whole Ludhiana district. All these are divided into six main
centers which are as under:
MOHALI 140
ROPAR 50
LUDHIANA 30
SIRHIND 30
CHANGAIWALA 30
SANDHORE 20
ACHIEVEMENTS
MILK PROCUREMENT:-
 SR. NO. MILK HANDLING PRODUCT
CAPACITIES
1 City supply 450000 litres per day
2 Dahi 30 MT/day
3 Lassi 60MT/day
4 Paneer 4000 KGS per day
5 Kheer 1500 KGS per day
6 Ghee 5 Mt/day
TOTAL MILK 500000 LITRES PER
HANDLING DAY
CAPACITY

ANIMAL HEALTH CARE & OTHER TECHNICAL INPUTS:-

In addition to organizing the remuneration Milk market system through milk
producers cooperative societies , milk plant is also providing regular health
coverage by running 2 vet nary routes and 55 artificial Insemination Services
Stations at society level .
Supply of Balanced Cattle Feed :-
Special attention has been paid to the supply of balanced cattle feed to the milk
producers so as to enhance the milk production . Four types of cattle feeds are
being supplied ie ISI Type , high energy byepass protein feed and buffalo
super feed to meet the requirements of Milk Producers .
Supply of Improved Varieties of Fodder Seeds:-
Cows does not produce ample milk without ample fodder . Through research
and seed-farms , Milkfed has worked to provide the farmers high yielding
forages at low cost . Fodder Developments activities initiated by Milkfed have
created a good demand of improved fodder seeds in Punjab . Milkfed
established its own seed processing unit in 1985 , the unit is automated and has
the capacity to grade 16 million tons of fodder seed per day
Quality Assurance Program :-
Qualtiy assurance program (QAP) which is a part and parcel of Dairy Plant
Improvement Program (DPIP) was taken up in Ludhiana Milk Union with the
technical guidance from NDDB . The main objective of the program is to
improve efficiency of plants coupled with loss management to bring down the
cost of production , improve the quality of milk and milk products
manufactured to ameliorate the general hygiene and house keeping standards
and above all to enhance the profitability and financial viability of the milk
plants to enable milk producers to get better price for their produce .
MAIN PRODUCTS MANUFACTURED BY MILK PLANT
The main products which are manufactured by the milk plant LUDHIANA are
as under :
1. Pasteurized Milk
2. Milk Powder
3. Kheer
4. Sweetened Flavoured Milk (PIO)
5. Milk Cake
 6. Cheese
7. Curd
THE EXTENSION OF THE BRAND:-
After winning faith of innumerable consumers. Verka did not stop. For there
was a scope for more . Changing times brought new trends, needs, tastes and
hopes. Verka dynamic as ever too acquired newer forms. By adding value to
the milk to satisfy a quality conscious society. And what success! For,
consumers could have their own pick as we came up with varied varitiesof
cheese like the processed Cheddar Cheese, Cheese spread, and cheese singles.
And there were milk powders like Dairy Whitner, Skimmed Milk Powder and
Infant Milk powder. Health Drinks like Verka Vigour, Verka Lassi, Sweetened
Flavoured Milk and a mango drink called Raseela. Then there were Verka
Curd and a whole lot of different flavours of Ice Creams.
VISION, MISSION & OBJECTIVES
VISION
TO become the most admired brand in the dairy sector and vibrant cooperative
institution in the country, facilitating inclusive growth.
MISSION
Ensuring prosperity to all the milk producers by ensuring milk procurement at
remunerative prices around the year coupled with providing quality extension
services for enhancing milk production as well as reducing costs. Ensuring
quality processing of milk and production of milk products in a clean, hygienic
manner and making them available to the consumers at reasonable prices
through excellence in marketing.
OBJECTIVES
 To ensure quality milk procurement at remunerative price coupled
with improved animal productivity for reducing cost of milk production
for sustainable growth of the milk producers.
 To provide quality services at the door steps of milk producers.
 To ensure Quality Assuarance in procurement, processing and
enhancing efficiency in the entire value chain.
 To improve fiscal management by optimizing the returns on capital.
 To enhance brand equity.
 To ensure continual expansion of distribution.
 To embrace innovation in the entire value chain for consumer
delight.
SWOT ANALYSIS

STRENGTH:-

 Minimum interference from top mangement in day working.

 Qualified, experienced and devoted workforce.
 Brand name- VERKA
  Direct contacts with milk producers.
 Own cattle feed plant and fodder seed grading stations for supplying
certified fodder seeds.
 Technical financial and support form milk fed head office Chandigarh as
well national Dairy Development Dairy Board.
 ISO and HACCP certification.
 Surplus created capacities.
 Good corporate governance and socially responsible organization.
 Quality of milk is very good.

WEAKNESS:-

 Situated between two rivers Ravi and Beas and prone of floods and
sometimes havoc is caused which ultimately affects the cattle of
population in the crease.
 Indo pak border is near to gurdaspur at which situation always
distributing local population which ultimately affects cattle rearing by
the people.
 Highly completive markets.
 Financial position of plants is very weak from many years.
 Sufficient working capital is not available.
 Stagnation in milk procurement.
OPPURTUNITIES:-

 There is phenomenal scope for innovations in products development ,

packing and presentation. Given below are potential areas of value
additional .
 Efforts to exploit export is already on. AMUL is exporting to
Bangladesh, Srilanka, Nigeria and the middle east. Verka should also
focus on export as there is growing demand for India dairy product in
foreign countires.
 Feasibility of home delivery system for city supply milk to be exposed.
 Diversification of land use for improving profits.

THREATS:-

 Private companies have started operating in this domain. These private

companies pay for procurement milk which may be challenge for Verka.
 Strong marketing strategy by competitor by offering the discount
coupans to consume and supply healthy commission to retailer.
 Strong supply chain management by the competitors.
 Borders tensions and river floods.
 WTO agreements.

CHAPTER-3
 INVENTORY
MANAGEMENT
INVENTORY MANAGEMENT
“ Inventory management is a science primarily about specifying the shape and
percentage of stocked goods. It is required at different locations of within a
facility or within many locations of a supply network to precede the regular
and planned course of production and stock of materials.”
CHAPTER-4
TYPES OF
INVENTORIES
TYPES OF INVENTORIES:-
TRANSIT INVENTORIES:-
Inventory many times have to be transported from one location to the other as
they pass through the levels of manufacturing. These inventories are called
transit or pipeline inventories as they are in transit form a location to another.
Automobile manufactures make use of freight consolidations to pool in their
investors.
CASE :- HPCL handles the transportation from refineries to customers through
various modes like roadways, shipping, pipelining etc.
BUFFER INVENTORIES:-
Inventories are sometimes used to count attrack the uncertaines of demand and
supply. They could also be used to take care of unforeseen situation like poor
transportation, poor quality etc. The more safety stock of a firm has very small
is its probability of running in to stock out situation.
APPLICATION INVENTORIES:-
Firm often purchase and hold stock which is much higher than their present
requirements in anticipation of a future event. These events can include:
 Seasonal variation in demand
 Price variations
 Labour strike
This method firms to build up their inventory reserves when the demand is
declining and as the demand shoots up they can utilize the inventory. The firm
need not increase their inventory.
DECOUPLING INVENTORY:-
The production time of each machine in a manufacturing plant varies. Some
system produce more products in the same time duration. The fatering of any
machine must not affect the entire production process.
CASE:- Consider a book manufacturing firm. If it is known that the paper
manufacturing machine is not working for few days then the manager forecasts
the requirement and carries out other activities like binding so that the entire
processes still intact.
THE MOST COMMON USED
INVENTORIES :
 RAW MATERIAL
 WORK-IN-PROGRESS
 FINISHED GOODS
 MAINTAINANCE, REPAIR AND
OVERHAUL
CHAPTER -5
DETAIL OF
STORE
INVENTORY
IN VERKA
MILK PLANT
DETAIL OF STORE INVENTORY IN VERKA

PLANT PACKING MATERIAL:-

Any material used easily to protect something. Packaging wadding material
stuff- The tangible substance that goes into makeup of physical object; “wheat
is a stuff to make bread.”
Packaging is a technology of enclosing or protecting products for distribution,
storage, sale and use. Packaging also refers to the process of designing,
evaluating, and producing packages. Packaging can be described as a
coordinated system of preparing goods for transport, warehousing, logistic,
sale and end use.

PREVIOUS YEAR AMOUNT: 19156049.75

CURRENT YEAR AMOUNT: 18269283.70

PRINTING AND STATIONARY:-

Printing is a process for reproducing text and images using a master form or
template. The earliest examples include Cylinder seals and other objects such
as the Cyrus Cylinder and the cylinders of nabonidus. The earliest known form
of woodblock printing came from china dating to before 220 A.D. Later
developments in printing include the movable type, first developed by Bi
Sheng in China. Johannes Gutenberg introduced mechanical movable type
printing to Europe in the 15th century, his printing press played a key role in the
development of the Renaissance, Reformation, the Age of Enlightment, and
the scientific revolution and laid the material basics for the modern knowledge-
based economy and the spread of learning to the masses.
Stationary is a mass noun referring to commercially
Manufactured writing materials, including cut paper, envelops, writing
implements, continuous stationary, and other office supplies. Stationary
included materials to be written on by hand or by equipment such as computer
printers.

1. General: Office supplies used for writing, typing or printing. Not to

be confused with ‘ stationary’ which means not moving or having a
fixed position.
2. Computing: Several kinds of paper used in printers, such as (1)
Single sheet stationery: paper cut into standard sizes, sold usually in
reams
 of 500 sheets and used mainly with friction- feed printers such as inkjet
and laser printers. (2) Continuous stationary: fan floded paper with
sprocket holes on side and transverse perforations for easy seperations
into individual sheets, used mainly with impact printers. It is of two
types: (‘single part’ ‘multipart’ any have two, three or more plies of
‘carbonless’ copying paper.
PREVIOUS YEAR AMOUNT-533134.10
CURRENT YEAR AMOUNT-508873.00

CHEMICALS AND DETERGENTS:-

SHORT ANSWER: Everything is a chemical.
LONGER ANSWER: Chemistry is the study of matter and its interactions
with other matter. Anything made is therefore a chemical. Any liquid, solid,
gas. Any pure substance: any mixture. Water is a chemical. Technically
speaking, so is a chunk of your computer. A chemical can often be broken
down into components, as is true with your computer. However, people
generally use the term ‘chemical’ to refer to a substance that appears
homogeneous or same throughout its structure.
Cleaning agents that helps to remove dirt and grease from porous
surfaces(such as fabrics, clothes, non-treated wood) and non- porous
surfaces(such as metals, plastics, treated wood). All detergents are made
detergents when cleaning out areas of your factories so you know the job is
done right.
PREVIOUS YEAR AMOUNT-491989.25
CURRENT YEAR AMOUNT-758088.15

LABOUR WELFARE MATERIAL:-

Labour welfare is an important dimension of industrial relation, labour
welfare includes overall welfare facilities designed to take care of well
being
of employees and in order to increase their living standard. It can also be
provided by government, non government agencies and trade unions.
PREVIOUS YEAR AMOUNT- 201429.15
CURRENT YEAR AMOUNT-413681.60

HARDWARE AND BUILDING MATERIAL:-

Household hardware or simply hardware, is a general term for equipment
that can be touched/held by hand such as screws, nuts, washers, keys, locks
hangers, latches, handles, wire chains, belts, plumbing supplies,etc.
household hardware is typically sold in hardware stores.
Building material is any material which is used for construction purposes.
Many naturally occurring substances, such as clay, rocks, sand and wood,
even twings and leaves, have been used to construct buildings.
PREVIOUS YEAR AMOUNT-469890
CURRENT YEAR AMOUNT-279073.50

INGREDIENTS FOR MILK PRODUCTS:-

An ingredients is a substance that forms part of a mixture. For example, in
cooking, recipes specify which ingredients are used to prepare a specific
dish. Many commercial products contain a secret ingredient that is
purported to make them better than competing products. In the
pharmaceutical industry, an active ingredient is that part of a formulation
that yields the effects expected by the customer.
PREVIOUS YEAR AMOUNT-93326.90
CURRENT YEAR AMOUNT-204903.30

VEHICLE SPARES:-
PREVIOUS YEAR AMOUNT-131905.15
CURRENT YEAR AMOUNT-204903.30

MACHINERY SPARES:-
PREVIOUS YEAR AMOUNT-7683936.70
CURRENT YEAR AMOUNT-8354041.25
OTHER CONSUMABLES STORES:-
They would soon become consumables in the market and that made me a bit
unhappy because I really valued their originality.
PREVIOUS YEAR AMOUNT-9722301.10
CURRENT YEAR AMOUNT-51393039.95
CHAPTER-6
REVIEW OF
LITERATURE
 LITERATURE REVIEW ON INVENTORY
MANAGEMENT
In today’s world every business tries to strike a balance in inventory between
what is needed and what is demanded, considering the major factor of cost
cutting/reduction. This control is called inventory management or inventory
control. . Inventory is basically assets which are stock of any business.
Inventory management focus on the capacity of the inventory, the place in
which it is located so that one can use it when needed, supply chain
management of the raw materials and goods. Inventory management deals with
the demand forecasting, asset management of the raw material and goods, to
forecasts the demand of future. This helps the top level manager to understand
and coordinate with the supply chain management or production management
are satisfactory level of service.
Most company measures the ability to satisfy the customer by the following 3
factors/ methods:
1. Number of order which act per schedule.
2. Number of order which are sipped as per schedule.
3. The idle time in inventory as well as shortage.
CHAPTER – 7
LIMITATIONS
LIMITATIONS OF TRADITIONAL
INVENTORY MANAGEMENT PRACTICES:
Inventory management is affected by variations at any stage of production,
transportation or even warehousing. Proper inventory management will
increase the company’s flexibility with the right product available at the right
time at the right place.
DEFICIENT DEFINITIONS:
Any channel strategy has to revolve around the ultimate objective- a satisfied
customer. The issue that arises here is inadequacy in defining the customer
service. Since it is highly individual concept and cannot really be measured,
evaluation of performance is concern.
UNRELIABLE DELIVERY SCHEDULES:
Inventory-in-transit can lead to confusion in the ranks of both manufacturers
and the distributors. While the stock has already left the manufacturers
warehouses, any distributors in-transit can throw the distributors completely
off-schedule.
INFORMATION SYSTEMS:
Most of the manufactures and channel partners use information systems to
streamline their operations. However, these information systems operate in
isolation without any integration between themselves. This led to duplication
and redundancy in work.
SIMPLISTIC POLICIES:
Most inventory policies are centred on the quality of usage of goods stocked.
However, they do not always consider the unpredictability surrounding the
usage. Once they are also considered, the stocking policies will be more
flexible resulting in minimal stock- outs and inventory pile-ups.
IMPACT OF UNCERTAINTIES:
Most policies are formulated under a set of assumptions about the future.
Ideally, the potential variations from the projections should be predicted and
accommodated in the planning. When they are not, the impact of these
uncertainties will bear heavy on the inventory management.
ORGANISATIONAL BOTTLENECKS:
In case of business units and other profit centres, the internal suppliers have
their own goals to achieve, which derails the pursuit of synergy. Inter-
departmental and other bureaucratic issues have often been the cause of many
pitfalls.
THE METRICS:
Supply chains today have morphed into complex and confusing structures.
Measuring performance of even internal partners can at times be difficult;
therefore evaluating the supply chain can be cumbersome task.
 CHAPTER-8
OBJECTIVES
OF
STUDY

OBJECTIVES
 Diagnose the financial statement.
 Asses the earning capacity or the profitability of an organization.
 To ascertain the efficiency with which the firm is utilizing its assets in
generation sales revenue.
 To give remunerative prices to farmers and to ensure permanent market
for the whole year.
 To provide ISI marks good quality balanced cattle feed and fodder seeds
to the farmers.
 To provide technical inputs like artificial insemination, to improve the
breed of aniamls, animals health services, preventive disease treatment
and awareness regarding farm mangement etc.
 CHAPTER-9
RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY
 Research design is the arrangement of conditions for collection and
analysis data in manner to combine relevance to the researcher purpose
with economy in procedure. Research methodology is a way to
systematically solve the research problems. It deals with the objective of
a research study, the method of defining the research problem the type of
hypothesis formulated, the type of data collected, method used for data
collecting and analysing the data etc. The methodology includes
collection of primary and secondary data.
RESEARCH:
Any efforts which are directed to study of strategy neede to identify the
problems and selection of best solutions for better results are known as
research.
RESEARCH DESIGN:
In view of the objects of the study listed above an exploratory research
design has been adopted. Exploratory research is one which is largely
interprets and already available information and it lays particular
emphasis on anaysis and interpretation of the existing and available
information.
 To know the financial status of the company.
 To know the credit worthiness of the company.
 To offer suggestions based on research finding.

TYPES OF RESEARCH:
DISCRIPTIVE RESEARCH:
The study follows descriptive research method. Descriptive studies aims at
portraying accurately the characteristics of a particular group or situation.
Descriptive research is concerned with describing characteristics of a particular
individual or a group. Here the researcher attempts to presents the fact by
collecting data.
RESEARCH DESIGN:
A research design is a basic of framework, which provides guidelines for the
rest of research process. It is the map of a blueprint according to which the
research is to be conducted.
SOURCES OF DATA:
The task of data collection begins after research problems has been identified
and research design chalked out. Data collected are classified into primary and
secondary data.
PRIMARY DATA:
Includes unstructured personal interviews from account officers in the
enterprise.
SECONDARY DATA:
Includes the annual report, website of the company and which of the company
and which of the company and which contains details, which is helpful for
making my project report.
TYPES OF SAMPLING DESIGN IN RESEARCH
METHODOLOGY:
When creating a sample design, a researcher decides from who or what they’ll
collect data. They also choose the techniques and procedures they’ll use to
select items or individuals for the sample. There are several types of sample
design that fall into two main categories:
PROBABILITY SAMPLING
 SURVEYS
 FOCUS GROUP
 OBSERVATIONS
 DOCUMENTS AND RECORDS
QUANTATIVE DATA ANALYSIS
 DESCRIPTIVE ANALYSIS
 INTERENTIAL ANALYSIS
 CONTENT ANALYSIS
 NARRATIVE ANALYSIS

CHAPTER-10
 SUGGESTIONS

SUGGESTIONS
Lets keep it simple: inventory is the lifeblood of the supply chain. It’s what
flows from node to node.And at each node it’s critical to figure out that
perfect balance of supply and demand,or else suffer dire consequences. If
you have too little inventory you risk lost sales and customers from “ out of
stocks”. If you have too much inventory, you’ll need more of everything-
more space, more transportation,more handling, more labour and more
money.
1. Consider inventory optimization tools:
Inventory optmization tools have been gaining ground as companies
seek to evaluate their entire network and determine the best inventory
policies for each product at each node in their supply chain. These are
typically stand-alone software tools that use data from WMS and ERP
systems.
2. Employee business solutions thatb use real-time analytics
under one platform:
According to mechael wohlwend, vice president of SAP Americans and
this year’s vice president of the warehousing Education and research
council, “ the days of managing inventory using Excel Spreadsheets are
passe”
3. Don’t treat all SKUs the same:
There is no such thing as a one size fits all solutions. “ Each and every
product does not have the same supply and demand variability pattern”
says Sapra. “ Focus on these 20% that statistically make up 80% of the
volume and manage that inventory really well,so you maximise sales
and profits”.
4. Keep an eye on your suppliers:
There are suppliers that don’t necessarily stick to their schedule or
deliver on their commitments. “ It’s not only in terms of timing, but also
fill rate,” says Wheeler. “ If you ordered 1000 cases of pencils and the
order shows up at the door with only 900, then that’s a problem.
5. Track essential attributes:
Over the past few years, tracking product genealogy and tracebility are at
the top of inventory managers’must have lists.
“It’s not enough to just track your lot numbers,” says Curt Sardeson,
managing principle of the Open Sky Group, a consulting firm
specializing in supply chain management solution. “ If you used
subcomponents and subassembles that you mix into your product, you
also need to know those lot numbers in case your product has a recall.
6. Leverage Mobile Devices:
Mobile technologies and mobile user interfaces are new ubiquitous for
capturing data on inventory. “ It’s time for even businesses that don’t
see themselves as complex to demand mobility solutions for accuracy,”
says Oracle’s Sherman.

CHAPTER-11
 FINDING
INVENTORIES

FINDING INVENTORIES
A Finding aid is a document that assists researchers in navigating a
large archival collection. It usually provides a biography of the
individual who created the collection, a chronology, a brief overview of
the material, and
a fodder-by-fodder list of contents. Findings aids for distinct collections
will be added to this site as they become available.
BEGINNING INVENTORY:
Beginning inventory is defined as the total dollar value of the
company’s inventory at the beginning of an accounting period.
Beginning inventory includes finished goods, work-in-progress, and
raw materials. The inventory is valued at its cost to the company,
including the purchase price, transportation costs, and other associated
expenses.
BEGINNING INVENTORY FORMULA:

BEGINNING INVENTORY =
SALES (COGS)+ENDING INVENTORY-PURCHASE(INVENTORY
ADDED TO STOCK)

ENDING INVENTORY=
BEGINNING INVENTORY+PURCHASE-SALES (COGS)
CHAPTER-12

CONCLUSION

CONCLUSION

Your company’s success is not only dependent on sales, but

on your company’s ability to say, “ Yes we habe that item in
stock.” The problem is inventory control is usually an after
thought. After the customers order it, and you don’t have it,
you begin thinking about it.
“ We know little more about distribution today, than
Napoleon’s contemporaries knew about the interior of
Africa”- Peter Drucker. If this is not true,then why do
economic downtrums affect us so? Why doesn’t our
profiatbility swing through the roof when the economy
comes back, after the downsizing, or should I say “dumb –
sizing”, because we ultimately affect everything except the
one thing that needs affecting, the accuracy of our inventory.
Now is the time we learned about the interior of that dark
continent, “ your warehouse”, and begin doing something
about it.

BALANCE SHEET
CHAPTER-13
BIBLIOGRAPHY

 Panday IM., Financial Management, ninth addition, USB

publication New Delhi
 Mahat R.N Management Accounting, sahitya Bhawan
Publication, Agra.
 Jain P.K Financial Management , 5th addition, publisher Mc grew
hill companies.
 Income statement and financial statement of 2012-14.
 Internet Portals:
www.verkadairy.com
www.milkfed.com
www.dairyindia.com