Prof. H.S Sidhu
The Punjab State Cooperative Milk Producers’ Federation Limited
popularly known as MILKFED Punjab,
came into existence in 1973
with a twin objective of providing remunerative milk market to
the Milk Producers 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.
it came to real self in the year 1983
To bring the ‘White Revolution’in the state of Punjab by providing
necessary inputs such as improved breeding,feeding,health care and
To provide an assured market and remunerative price for every drop of
surplus milk at village level through the year.
To provide more job opportunities to farmers with a better standing and
confidence so that they could move ahead in life.
To provide fresh hygienic, good quality milk to urban consumers at
To modernize the exiting milk plants.
To set up new milk plants for converting surplus milk into products and
market these within and outside country.
To implement socio economics program of Govt. to promote dairy for
generating direct employment in rural areas.
The setup of the organization in a three tier system with 6000 milk
producers co-operative societies at village level,11 milk unions at
district level and federation as an apex body at the state level. The
district unions are:
These unions are in 11 districts of the state carry out smooth
functioning of marketing, procurement, cattle breeding
programme through district co-opreative unions.
Milkfed has formulated company specifications for its milk & milk
products to provide standard and quality of Products to Consumers.
Cheese & Paneer
Ghee 7 butter
Ice cream & sweets
Today, verka has out stripped its own boundaries to reach
our homes. Verka was there before it came to MILKFED.
But then, it was the difference between being there and
making it big. When we at milkfed took it on, we believed
that it had potential to do a lot more. And it did. With little
more of a consumer oriented approach, verka became a
brand to reckon with. With its growing outlets and thus
easier availability, it reached far and wide across the state
and beyond. To people today, verka is a part of their daily
MILKFED is serving nationwide consumers through its net work
of Regional Offices and very strong distribution channels. Milkfed
markets a wide range variety of Verks products which include
liquid milk, skimmed milk powder, whole milk powder , infant
food , ghee, table butter, cheese lassi, SFM, Ice Cream, UHT milk
, Dairy whitner, SFM , Raseela, Curd ,Paneer etc. the annual
turnover of Milkfed has crossed Rs. 1255 crores. Verka is a
premium price over powders manufactured by competitors which
include multi-national as well as private trade and other
Cooperative Federations. Now, Verka is known for its
quality, freshness, purity and of course its home made taste
After winning faith of innumerable consumers, Verka did not stop.
Changing items brought new trends, needs, tastes and hopes. Verka,
dynamic as ever too acquired newer forms of adding values to milk and
milk products. A part from introducing new variants of UHT long shelf life
milk. SFM is carry away bottles, cold Coffee and long shelf life curd. We
are working on developing orange, pine apple and elaichi based
drinks.Verka Ice Cream in different flavors and packaging is available in the
market. Many new products are in pipe line. In true sense, milk had never
meant so much before.
Making community based silage pits to fulfill shortage of
green fodder in kandi areas.
Providing milking machines to dairy cooperative societies
and progressive dairy farms.
Induction of more than 1200 commercial dairy farms in the
fold of dairy cooperatives
Women empowerment programme
State dairy plan 2022
Amul was formally registered on Dec 14,1946. It was suggested
by a quality control expert in Anand. Some cite the origin as an
arcronym to (Anand Milk Producers Union Limited). The Amul
revolution was started as awareness among the farmers. It grew
and matured into a protest movement that was channeled towards
Nestle relationship with India dates back to 1912, when it
began trading as The Nestle Anglo-Swiss Condensed Milk
Company (Export) Limited, importing and selling finished
products in the Indian Market. Nestle has been a partner in
India's growth for over nine decades now and has built a
very special relationship of trust and commitment with the
people of India. The company's activities in India have
facilitated direct and indirect employement and provides
livelihood to about one million people including farmers,
suppliers of pacakaging materials, services and other goods.
Since 1974 millions of consumers in Delhi have been
walking up to the goodness and freshness of mother dairy
milk. Mother Dairy has established itself as an integral part
of their lives be it in terms of providing pure wholesome
milk or rich, delicious milk products. The drop logo, used
by coopratives across the country is a symbol of purity and
freshness, qualities which Mother Dairy over the years has
come to be closely associated with.
To bring the ‘White Revolution’in the state of Punjab by
providing necessary inputs such as improved
breeding,feeding,health care and management practices.
To provide an assured market and remunerative price for
every drop of surplus milk at village level through the year.
To provide more job opportunities to farmers with a better
standing and confidence so that they could move ahead in
To provide fresh hygienic,good quality milk to urban
consumers at reasonable rates.
To modernize the exiting milk plants.
To set up new milk plants for converting surplus milk into
products and market these within and outside country.
To implement socio economics program of Govt. to
promote dairy for generating direct employment in rural
There are various methods or techniques used in analyzing financial
statements, such as comparative statement, trend analysis,
common- size statement, schedule of changes in working capital,
fund flow analysis, cost - volume profit analysis. The ratio
analysis is one of the most powerful tools of financial analysis. It
is the process of establishing and interpreting various ratios
(quantitative relationship between figures and groups of figures).
It is with the help of ratios that the financial statements can be
analyzed more clearly and decision made for such analysis.
Simplifies financial statements: It simplifies the comprehension
of financial statements. Ratios tell the whole story of changes in
the financial condition of the business
Facilitates inter-firm comparison: It provides data for inter-firm
comparison. Ratios highlight the factors associated with with
successful and unsuccessful firm. They also reveal strong firms
and weak firms, overvalued and undervalued firms.
Helps in planning: It helps in planning and forecasting. Ratios
can assist management, in its basic functions of forecasting.
Planning, co-ordination, control and communications.
Help in investment decisions: It helps in investment
decisions in the case of investors and lending decisions in
the case of bankers etc.
Liquidity refers to the ability of a concern to meet its
current obligations and when these become due. The
short-term obligations are met by realizing amounts
from current, floating or circulating assets. The current
assets should either be liquid or near liquidity. These
should be convertible into cash for paying obligations
of short-term nature. To measure liquidity of a firm,
following ratios can be calculated.
Quick or Acid Test or liquid Ratio
Absolute Liquid Ratio or cash position Ratio
FORMULA= Current Assets
FORMULA= Quick or Liquid Assets
FORMULA= Absolute Liquid Assets
Absolute Liquid Assets=Cash & Bank +Short-term Securities
Funds are invested in various assets in business to make sales and
earn profits. The efficiency with which assets are managed
directly affects the volume of sales. The better the management of
assets, the larger is the amount of sales and the profits. Activity
ratios measure the efficiency or effectiveness with which a firm
manages its resources or assets. These ratios are also called
turnover ratios because they indicate the speed with which assets
are converted or turned over into sales..
Inventory/ Stock turnover Ratio
Working Capital Turnover Ratio
AVERAGE STOCK =OP.STOCK+CL.STOCK
ITR ( IN TIMES)
Working Capital Turnover Ratio= Cost Of Sales
Average Working Capital
Turnover Ratio (
The term ‘solvency’ refers to the ability of a concern to meet its
long term obligations. The long term indebtedness of a firm
includes debenture holders, financial institutions providing
medium and long term loans and other credit selling goods on
installment basis. Long term solvency ratios indicate a firm’s
ability to meet the fixed interest and costs and repayment
schedules associated with its long term borrowing. The following
ratios serve the purpose of determining the solvency of the
Proprietary or Equity Ratio
Fixed Assets to Proprietor’s Fund Ratio
Fixed Assets to Total Long-Term Funds
Proprietory Ratio= Shareholder’s Fund
PROPRITORS FUNDS=EQUITY+PERFRENCE+RESERVE &
TOTAL ASSESTS= FIXED ASSESTS + CURRENT ASSESTS
Fixed Assets Ratio= Fixed Assets
Total Long Term Funds
Long Term Funds= Shareholder’s Fund+ Long-Term Borrowings
TOTAL LONG TERM
A business needs profits not only for its existence but also
for expansion and diversification. Profits are, thus, a useful
measure of overall efficiency of business. The various
profitability ratios are discussed below:
GENERAL PROFITABILITY RATIOS
GROSS PROFIT RATIO
OPERATING PROFIT RATIO
NET PROFIT RATIO
Gross Profit Ratio= Gross Profit X 100
Gross Profit Ratio (%)
Operating Ratio= Operating Cost X 100
Operating Cost= Cost of goods sold+ operating expenses
Net Profit Ratio= Net Profit after tax X 100
Net Profit Ratio=Net Operating Profit X 100
Profits are measure of overall efficiency of a business. Overall
profitability or efficiency of a business can be measured in terms
of profits related to investments made in the business. Various
overall profitability ratios are discussed below.
Return on Shareholder’s Investment or Net worth Ratio
Return on Equity Capital
Earning per Share
Return on Capital Employed
Capital Turnover Ratio
Return on Shareholders’ Investment= Net Profit (BEFORE
interest & tax)
CAPITAL EMPLOYED= FIXED ASSETS+CURRENT ASSESTCURRENT LIABILTIES
BEFORE INT & TAX
Return on Equity Capital = Net profit after tax- preference
Equity shareholder funds
NET PROFIT AFTER
INT & TAX
Earnings per Share= Net Profit after tax- Preference Dividend
No. of equity Shares
NET PROFIT AFTER
INT & TAX
Capital Employed= Fixed Assets +Working Capital
Capital Turnover Ratio= Cost of Goods Sold or Sales