in this presentation we discussed about basic of ratio, types of ratio, comparison of ratios of hul and itc limited.
some ratios and graphs are taken from moneycontrol.com
in this presentation we discussed about basic of ratio, types of ratio, comparison of ratios of hul and itc limited.
some ratios and graphs are taken from moneycontrol.com
CASE STUDY ON SBI
BRIEF EXPLAINATION OF THE CASE
POST-SBI-VRS SCENARIO
SBI-VRS is not as per expectation of management .. because
STRATEGIES FOR PROPER STAFF COST REDUCTION
Lessons from the case…
CONCLUSION
This is a presentation for our Paper Strategic Management at Amity Business School, Noida. The topic covered was the Ongoing crisis in Air India, and the possible ways to work around a solution for it. All aspects of management, including Finance, Operations, Marketing and HR was discussed.
CASE STUDY ON SBI
BRIEF EXPLAINATION OF THE CASE
POST-SBI-VRS SCENARIO
SBI-VRS is not as per expectation of management .. because
STRATEGIES FOR PROPER STAFF COST REDUCTION
Lessons from the case…
CONCLUSION
This is a presentation for our Paper Strategic Management at Amity Business School, Noida. The topic covered was the Ongoing crisis in Air India, and the possible ways to work around a solution for it. All aspects of management, including Finance, Operations, Marketing and HR was discussed.
This report mainly focuses on the various factor regarding Indian dairy industry.It will actually take you to insight of Mother dairy.
Hope you like it.
And please do comment.
Hi Friends
This is supa bouy
I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ supabuoy@gmail.com.
I will try to assist the best way I can.
Cheers to lyf…!!!
Supa Bouy
A Study on Formulation of Costing SystemProjects Kart
A Study on Formulation of Costing System. Modern business needs frequent cost information about business activities to plan accurately for the future, to control business results and to make a proper appraisal of the performance of persons working in the organization. The fulfillment of these goals requires details about the costs incurred and benefits (revenues) obtained which are provided by “cost accounting”.
Financial accounting is developed over the time to record, summarize and present the financial transactions or events, which can be expressed in terms of money. This function was primarily concerned with record-keeping leading to preparation of Profit and Loss Account and Balance Sheet. The information obtained through financial accounts is useful to the shareholders, creditors, financial analysts, labour union, government authorities etc. However, the information generated by financial accountancy for several purposes is not sufficient for decision making in many areas.
this is presentation about costing system .in this presentation we know about 1)introduction.2)cost accounting in India.3)list of industries in which cost Accounting are there.4)some specfice terms related to cost.5)Importance of good cosing system.6) objectives of good costing system7)prerequisite of Installing good costing system.then at last conclusion we know about what we know about it ,as it is only a small slide share but but there is long process occured to us. If you like this powerpoint then share also.thank you.
Read Chapter 13 from Page 216-234Based on the literature answe.docxcatheryncouper
Read Chapter 13 from Page 216-234
Based on the literature answer the followings questions (each answer is worth 1point):
1. What is a Management Control System? Mention the five steps to follow.
2. What is a standard setting process? How is this process setup?
Chapter I 3
Standard Cost and
Variance Analysis
'Tonifíhí we will uncinpt tn aiuwcr ¡hive
memphvsiral qiiestitmK: I. How did ihv imiver^e come to be?
2. Wttiit is the metmins: of life? tintt.-?. Whui ihc ItcH are staruiani costs all ahoui?"
Standard costs are widely used hy manufacturing organizations.In a survey of management accounting practices conducted inthe early 1990s, 67 percent of the respondents used standard
cost systems.' Moreover, 87 percent of the respondents employed
the same cost system for internal and external reporting.^
This chapter examines standard cost systems in a real-world set-
ting. It covers the advantages and disadvantages of standard cost sys-
316
Standard Cost and Variance Analysis 117
terns, explains the standard-setting process, and shows how to
perform variance analysis. The discussion focuses on manufacturing
entities, the primary users of standard cost systems. Nevertheless, it
also contains a section on standard costs in the service sector that
explains how service organizations can use these costs.
What Are Standard Costs?
Standard costs are predetermined costs that are usually expressed
on a per unit basis.^ They constitute a carefully formulated estimate
of what future costs should be, based on a desired level of productiv-
ity and process efficiency, and a set of assumptions about the operat-
ing environment. The set of factors that can affect standard costs was
discussed in Chapter 10 (see Figures 10-5 and 10-6).
Standard costs generally consist of three major elements: labor,
materials, and overhead. How to calculate each cost element and
perform a cost roUup was discussed in Chapter 10. These procedures
do not change under a standard cost system. However, in a standard
cost system, the management team establishes the standards of per-
formance up-front, such as the amount of labor hours required, the
expected materials usage, the process yield, and normal scrap levels.
These physical standards are priced and then added together to cal-
culate the standard cost of the product or service. Once the standard
cost has been established, it is typically not changed until the next
standard-setting cycle.
Standard Costs as a Management
Control System
Management control is the process by which managers influence
other members of the organization to implement the organizational
strategies. Figure 13-1 depicts the functions of a typical management
control system.** The organization makes plans, implements these
plans, and then has a mechanism to monitor the actual results
against the plan. A standard cost system is part ofthe management
control process. Other management control systems are budgets, per-
formance evaluations, and ...
Cost and Management Accounting and Comparative Analysis o Activity Based CostingAnamika Hore
This presentation titled , "Cost and Management Accounting and Comparative Analysis o Activity Based Costing." also Discuss about Traditional costing systems along with Activity Based Costing
Based on the literatures answer the following questionNo to e.docxikirkton
Based on the literatures answer the following question:
No to exceed 600 words in total
What tool do you need to control cost in your profit center?
What is the difference between cash and revenue?
This article explains the essential concepts of cost accounting. The overview provides an introduction to the basic cost accounting objectives and techniques, the roles of the controller and cost accountant within the corporate management structure and the ethical considerations that guide cost accountants. This article also explains the basic cost accumulation methods that are used in cost accounting systems. These methods include job order costing, process costing, backflush costing, hybrid costing and joint and by-product costing. Further, explanations of the most common costs that companies must plan for and control are included, such as direct labor, direct material and factory overhead costs. Finally, this overview describes how cost accounting techniques affect business considerations in areas such as budgeting, pricing and inventory costing methods, which include throughput, direct, absorption and activity-based costing systems.
Keywords Activity-Based Costing; Activity-based Management (ABM); Actual Cost System; Backflush Costing; Balance Sheet; By-product; Controller; Cost Accounting; Cost Accumulation; Cost Driver; Direct Labor; Direct Materials; Factory Cost; Factory Overhead; Fixed Cost; Indirect Cost; Job Order Costing; Joint Cost; Labor Productivity; Process Costing; Sunk Cost; Variable Cost
Accounting > Cost Accounting
Overview
Cost accounting is the application of accounting and costing principles to the tracking, recording and analysis of the costs associated with the products or services a business produces and the activities involved in the production process. Broadly speaking, cost accounting objectives include the preparation of statistical data, application of cost accumulation and cost control methods to production processes and analysis of an organization's profitability as compared with previous periods of time and projected budgets. Cost accountants use basic accounting techniques to compile and analyze data to meet these objectives. In performing these tasks, cost accountants work within the controller's office or the accounting department of most companies. And in addition to any internal company policies that govern their duties, cost accountants must consider the ethical principles that guide the accounting and financial reporting industries. The following sections provide a more in-depth explanation of these concepts.
Introduction to Cost Accounting
Cost accounting identifies, defines, measures, reports and analyzes the various elements of direct and indirect costs associated with producing and marketing goods and services. Cost accounting also measures performance, product quality and productivity. Direct costs can be directly traced to producing specific goods or services, such as the cost of raw mater ...
Similar to A study on formulation of costing system (20)
When we think about refreshment, the first thing that comes to our mind is coffee or tea. Most people prefer coffee and most prefer tea and these two drinks have become a part of a human being’s life.
Here we (I) have concentrated on coffee which is considered as a traditional drinks especially in south India. People here start their everyday life with a cup of coffee. Not only in south India but in all parts of the world people are so dependent and addicted to coffee that it acts as a daily schedule to every body every where. But this coffee is not grown in all parts of the world but is grown in very few places with right kind or weather, atmosphere and most important of all, the soil of that region.
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The sugar industry occupies a major portion in the (organization) industries of India. The sugar industries have rank second next to cotton and textile industries. The sugar industry started since 1830. China is the first producer of sugar in the world. It provides highest direct employment opportunities.
The sugar industry is one of the important Ago-based industry of the country India is the fourth major sugar production in the world. The first three is Russia, Brazil and Cuba. Sugar industry provides direct employment to nearly 3lakh persons this industry supports about 25 million agriculturists. It pay’s both to the central government and the state government about Rs.350 crores by way of different taxes. The capital employed in the industry is of the order of Rs.780 crores. There are about 414 mills producing sugar, which are spread all over the country.
When we think about refreshment, the first thing that comes to our mind is coffee or tea. Most people prefer coffee and most prefer tea and these two drinks have become a part of a human being’s life.
Here we (I) have concentrated on coffee which is considered as a traditional drinks especially in south India. People here start their everyday life with a cup of coffee. Not only in south India but in all parts of the world people are so dependent and addicted to coffee that it acts as a daily schedule to every body every where. But this coffee is not grown in all parts of the world but is grown in very few places with right kind or weather, atmosphere and most important of all, the soil of that region. It is usually grown in hill stations with adequate amount of rainfall and such places which are high above sea level. Therefore in India, Karnataka is such a place, especially South Karnataka which produces the highest amount of coffee in whole India. Most parts of Karnataka such as Chikmagalur district and many parts in Hassan District, and also Coorg.
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A study on formulation of costing system
1. A Study on Formulation of Costing System
1.1PROBLEM STATEMENT
Every organization which undertakes manufacturing follows a costing system.
Costing system is necessary as it evaluates the cost of various products manufactured and
also to have a proper control over the inventory.
Hassan Co-Operative Milk Producers’ Societies Union prepares a cost statement
for the various products it produces like milk, ghee, butter, peda, ice creams etc. In such a
case, it becomes necessary to study the costing system followed in the organization as a
thorough detail would help to find any weaknesses which can be overcome using suitable
techniques. It will be useful to reduce the expense on certain items which would reduce
cost and increase the profit. Present costing system is inadequate and will not give a
proper guidance regarding various cost centres and costs incurred for individual products
hence a new cost format has to be employed to check the various costs incurred on
products and also the costs incurred in various departments.
1.2 OBJECTIVES
Costing is a very important aspect in every product/ service manufacturing
concern. A study on this subject would be done with the following objectives:
1. Critical evaluation of the existing cost system
2. Recommending a new technique of costing for HCMPSU
3. Preparation of cost sheet for various products for the year 2008-09
4. To analyse the losses being incurred in manufacturing various products.
1.3 SCOPE OF THE STUDY
The study is extended to the accounts department of Hassan Milk Union. The data
for the preparation of cost sheet has been collected for the financial year 2008-09. Most of
the data has been collected from secondary sources.
H.R.I.H.E, Hassan Page 1
2. A Study on Formulation of Costing System
1.4 RESEARCH METHODOLOGY
The study is conducted at Hassan Co-Operative Milk Producers’ Societies union
Limited, Hassan over a period of 12 weeks.
1.5 DATA COLLECTION METHODS
For the purpose of carrying out a detailed study on the costing system of the
organization, the cost detail has to be collected. The data collected for this purpose is the
secondary data which would be provided by the accounts department of the organization.
1.6 LIMITATIONS OF THE STUDY
A study on this topic has certain limitations such as the costing system is a very
wide topic. It is very difficult to gather the information and analysis requires a thorough
knowledge.
H.R.I.H.E, Hassan Page 2
3. A Study on Formulation of Costing System
2.1 INTRODUCTION
Modern business needs frequent cost information about business activities to plan
accurately for the future, to control business results and to make a proper appraisal of the
performance of persons working in the organization. The fulfillment of these goals
requires details about the costs incurred and benefits (revenues) obtained which are
provided by “cost accounting”.
Financial accounting is developed over the time to record, summarize and present
the financial transactions or events, which can be expressed in terms of money. This
function was primarily concerned with record-keeping leading to preparation of Profit
and Loss Account and Balance Sheet. The information obtained through financial
accounts is useful to the shareholders, creditors, financial analysts, labour union,
government authorities etc. However, the information generated by financial accountancy
for several purposes is not sufficient for decision making in many areas, such as:
Acquisition of plant and machinery or other assets;
Determining product selection-addition or dropping or changing product combination in
case of multi product company;
Determining output level;
Determining or revising prices of products;
Whether profit earned is optimum as compared with competitors as well as earlier years.
The need of data for such details led to the development of cost accountancy.
The Institute of Cost and Management Accountants, London, has defined cost
accountancy as the “application of costing and cost accounting principles, methods and
techniques to the science, art and practice of cost control and ascertainment of
profitability as well as presentation of information for the purpose of managerial decision-
making”. Thus, it includes costing, cost accounting, budgetary control, cost control and
cost audit.
The Institute of Cost and Management Accountants, London, has defined costing
as the ascertainment of costs. Costing includes the “techniques” and “processes” of
ascertaining costs. The ‘techniques’ refers to the principles and rules which are applied
for ascertaining costs of products manufactured and services rendered. The ‘process’
includes the day to day routine of determining costs within the method of costing adopted
by the business enterprise.
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2.2 OBJECTIVES OF COST ACCOUNTING
To ascertain the cost of product or service rendered and enable measurement of profit
by proper valuation of inventory.
To provide information for planning and control through the techniques of standard
costing and budgetary control.
To provide data for periodical profit and loss accounts and balance sheets.
To reveal sources of economies in production.
To assist the management in fixation of selling price.
To provide the basis for production planning.
To analyze the data and provide suitable information to assist management in decision
making.
To indicate to the management any inefficiencies and the extent of various forms of
waste, whether of materials, time, expenses or in the use of machinery, equipment and
tools. This may indicate appropriate remedial action.
2.3 ESSENTIALS OF A GOOD COSTING SYSTEM
The law does not compel to install a costing system. However, the Government
has the power to order installation of such system in such industries as the Government
may deem fit. The system of costing is installed by the organizations on the grounds of its
utility. A system of costing has to be designed to suit the needs of the organization. A
good system of costing helps to achieve the objectives. It has the following essentials:
1. Flexibility- The system should have flexibility or adaptability to meet the changing
needs of the organization. Expansion or contraction should be adopted with minimum
change.
2. Integrated- It should be a well-knit integrated with financial accounting system. The
original records are available under financial accounts. The need for co-relation
between two cannot be over-emphasized.
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3. Promptness- Any information or report is useful only if the same is furnished regularly
and without any delay. The Cost Accounting System should ensure this aspect.
4. Accuracy- The system should ensure accurate information. To ensure this, the system
should provide checks to verify data compiled in a systematic manner.
5. Smooth flow of data- Coat Accounting needs flow of data from every section in the
organization and also reports on the performance of individuals. The objective of this
system should be properly explained.
6. Continuous review- The system should be constantly reviewed and supervised, so that
it gives what is expected of it. If it is not done, the system may become static.
7. Economy- The system should be economical and should not create financial burden on
the organization.
8. Comparability- The system should enable the management to compare the data with the
past. It should also facilitate departmental comparison.
9. Reconciliation- The system should facilitate reconciliation between cost accountancy
and financial accounting easily.
10. Simplicity- The system should be as simple as possible.
11. Standardization- Forms and procedures under this system should be standardized.
12. Management support- The management at all levels should support the system and in
its operations.
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2.4 ADVANTAGES OF COST ACCOUNTING
Business enterprises can derive many advantages from the cost accounting
system. Some advantages are listed below:
It provides data about profitable and unprofitable products and activities. Management
can take corrective actions on loss making products and make them also profitable.
Production/manufacturing methods may be improved or changed so that costs can be
controlled and profits can be increased.
Cost data can be obtained and compared with the standard cost within the firm or
industry.
All items of cost can be analyzed to minimize the losses and wastage emerging from the
manufacturing process and reduce the costs associated with different activities.
More accurate and reliable financial accounts can be prepared promptly for use of
management.
It provides cost data and information to determine the price of the product. The cost of the
product is perhaps the most important determinant of product pricing.
Negotiations with government and labour unions can easily be made with the information
provided by cost accounting system.
It helps management in knowing the cost of different alternatives and selecting the most
advantageous course of action.
It ensures maximum utilization of physical and human resources, checks fraud and
manipulations, and helps employees as well as the employer in their basic goals of getting
higher earnings and maximizing the profit of the concern.
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2.5 COSTING SYSTEM
The term ‘costing system’ refers to an accounting system followed to accumulate
costs, to ascertain costs of products or jobs, to prepare cost information using some
procedures and principles for recording of cost data. There are two basic methods of
costing- job costing and process costing.
Job Costing –
Job costing is used in those concerns where production is carried out as per the
specification of the customers. This method is popular in enterprises engaged in ship-
building, house- building, machinery production and repair. Job costing has the following
variants:
a. Batch costing- It is used to determine the cost of a group of identical or similar
products. This method can be applied for the production of nuts and bolts, medicines
and components which are manufactured in distinct batches.
b. Contract costing- This method of costing is used by house builders and civil
contractors.
c. Multiple costing- This costing method is used in those industries where the nature of
product is complex such as motor cars, airplanes etc.
Batch Costing-
This method is used in those industries where production is done continuously,
such as chemicals, oil, gas, paper etc. It has following variants:
a. Single output costing- This method is used where a single item is produced and the
final production is composed of homogeneous units.
b. Operating costing- This is used by those organizations which render services, and do
not produce any physical item, such as transport, power house, hospital etc.
c. Operation costing- This costing method aims at ascertaining the costs of each operation
in place of each process.
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2.6 FEATURES OF A COST ACCOUNTING SYSTEM
The cost accounting system may be used by all types of business organizations-
manufacturing and non-manufacturing. The cost accounting system should be practical
i.e. it must be helpful to the business. The following are the essential features of a cost
accounting system:
Basis for accumulating costs.
Relationship with financial accounting.
Basis of product costs.
2.7 DIFFICULTIES IN INSTALLATION OF A COSTING
SYSTEM
The installation of costing system in business organizations is not an easy task.
There are many difficulties which are faced by an organization while setting up its costing
system.
1. Opposition from existing staff.
2. Shortage of trained manpower.
3. Error in measuring requirements.
4. Non- cooperation from management.
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3.1 Industry Scenario
India is called the “country of villages” where it covers nearly 70% of its total
area. In this relation we can say that Indian economy is base on rural activities and their
development. Therefore we have to give prime importance to the rural activities.
A dairy is a place for handling milk and milk products. 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
milk products on an industrial scale. In developed dairying countries such as the USA the
year 1850 is seen as the dividing line between farm and factory scale production. Various
factors distribute to this change in these countries such as the concentration of the
population in cities where the jobs are plentiful, rapid industrialization, improvement of
transportation facilities, development of machines etc., The rural areas are identified for
the production, urban areas are for the processing of the milk.
3.2 Origin of Dairying in India
Around 1500 BC to 2000 BC the Aryans were first to domesticate cattle. Use
them for tilling their land obtain milk to be consumed as food. Again it were Aryans who
priced the milk of a cow more than its meat, forbade its slaughter, created legends about it
and even worshipped it. Hindus even to this day consider cow as sacred. Besides it were
only the East (India/China) which domesticated buffalo as milch animal and succeeded so
well that today, more than half the total production of milk in India is obtained from
buffalo.
Most of the farmers have one milk animal; they sell the milk through local milk
contractors or middlemen. These traders have always exploited the poor and uneducated
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milk producers. It was in the late forties, when integrated approach for dairy development
based on farmers owned milk co-operative was first adopted at Anand. The system
includes milk procurement productions and marketing through farmer co-operatives. In
India, the market milk technology may be considered to have commenced in1950 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 system of collective ownership,
operation and control of milk trade by farmers came to be known as ANAND PATTERN.
Anand pattern has given them an opportunity to have access to the modern technology.
The Brand ' ' is the household name for Pure and Fresh milk and milk products.
The premises institution is NDDB and IDC for application of the Anand pattern
throughout the country. The whole project under which replication was envisioned, is
named as “operation flood”. The success of Anand pattern depends as establishing a
strong co operative infrastructure at the grass root level, making economically viable to
strengthen.
Dairy industry offers employment opportunity to the people so as to help the
farmers to get fair price of milk. The farmers are provided with medical facilities to their
cattle. Milk is becoming an alternative life line in our rural economy. With the advent of
white revolution that is “SKHEERA KRANTI” in the same pattern of Denmark and
Holland.
Export of dairy products plays an important role in our foreign trade. It increases
the foreign exchange and national income of our country and also economic development
of our country.
3.3 History of Indian milk market industry
• Organized milk handling was made in India with the establishment of Military
Dairy Farms
• Handling of milk in co operative milk unions established all over the country on a
small scale in early stages.
• Long distance refrigerated rail-transport of milk from Anand to Bombay since
1945.
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• Pasteurization and bottling of milk on a large scale for organized distributed was
started at:
Aarey - 1950
Calcutta - 1958
Delhi - 1959
Mumbai - 1961
Madras - 1963
Establishment of milk plants under the 3 year plans for dairy development all over
India. They were taken up the dual object of increasing the national level of milk
consumption and ensuring better returns to the primary milk producer.
Now India is one of the richest milk producing country in the world. In 1999 it
produced milk up to 770 lakhs tons and the milk valued up to 75000 crores and 13% of
total production in the world is produced by India itself.
3.4 Dairy Industry in Karnataka
3.4.1 Background
In June 1974, an integrated project was launched in Karnataka to restructure and
reorganize the dairy industry on the co-operative principle and to lay foundation for a new
direction in dairy development. Work on the first ever, World Bank aided dairy
development project was initiated in 1975. Initially the project covered 8 southern
districts of Karnataka and Karnataka Dairy Development Corporation was set up to
implement the project. Dairy developmental activities was set up with dairy co operative
societies at grass root level, milk unions at the middle level and dairy development
corporation at state level as an apex body with the responsibility of implementing Rs.51
crores project. After the closure of operation flood II the dairy development activities
which continued under operation flood III ended on 1996. The post operation flood works
are financed by NDDB under different terms and conditions.
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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.
Bangalore Belgaum
Dakshina Kannada Gulbarga
Shimoga Bijapur
Mysore Bellary
Mandya Dharwad
Tumkur Kolar
Hassan
The Corporate Office of the Karnataka Milk Federation is located on
Dr.M.H.Marigowda Road in Bangalore. The Federation has a Board consisting
representatives of Milk Producers and the Government nominees. The day to day
functions of the Federation is managed by a group of professional managers headed by
the Managing Director
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.
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Mother Dairy, Bangalore, a Unit of KMF, is set up by NDDB on 7.12.1984. The
Dairy which has expanded from 4LLPD to capacity of 7.00 LLPD has a unique nature of
homogenising the milk and selling to its consumers through 50 Automatic Bulk Vending
Booths, 83 Shoppees and 70 FRP tanks. The Dairy also caters Milk in sachets and Milk
Products through its 289 retailers. The average sale of milk per day is 2.60 Lakh litres
during the year 2008-09. The entire requirement of milk is procured from Kolar Milk
Union. The Dairy produces Butter, Ghee, Curds, and Ice Cream & Skim Milk Powder.
The activities of all the Departments at Mother Dairy are being carried out through an on-
line computer system.
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3.5 PROFILE OF HASSAN CO-OPERATIVE MILK
PRODUCER’S SOCIETIES UNION LTD
3.5.1 INTRODUCTION
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The Union was registered on 30th March 1977 with the operational jurisdiction
extended to 3 Districts namely Hassan, Kodagu &Chikkamagalur.
The Dairy was setup under the Operation Flood II & III and has a processing
capacity of 1.2 Lakh Litres of milk per day. The Union also has a Dairy at Kudige with a
capacity of 50,000 litres per day which is the first Dairy in Karnataka State started during
January 1955.
The Union has three Chilling Centres at Birur, Holenarasipur and
channarayapatna with chilling capacity of 20000 liters per day at Birur and
Holenarasipura and 100000 liters per day at Channarayapatna. The Union also produces
Ghee, Peda, Curds, Khova and Butter Milk. The Union procures on an average 4.07 Lakh
litres of milk and sells 1.04 Lakh litres per day. There are 5 Bulk Milk Coolers & 46
Automatic Milk Collection Units in the Union.
Hassan Dairy was established under the World Bank aid with an initial handling
capacity of 60,000 KGPD and was being managed by Karnataka dairy development
corporation.
In the year 1987 with an idea of bringing all milk allied activities such as milk
procurement, milk processing and milk marketing the Hassan dairy and the Kudige dairy
(the first commission dairy plant) were handed over to Hassan Co operative Milk
Producers Societies Union. The integrated system of monitoring the milk procurement,
processing and marketing activities by milk producers themselves was established.
3.5.2 Mission Statement
Hassan milk union aims to render the best services at normal cost to its members
to increase milk production and produce good quality milk by paying remunerative price
throughout the year, thereby improving their economic and social condition while
ensuring high quality milk and milk products to the delighted level of the consumers at
competitive price.
3.5.3 Vision Statement
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The union thrives hard to adopt the modern and eco friendly technologies to
produce milk and milk products of international standards to make our presence
prominent in the global market.
3.5.4 Aims and Objectives
Hassan Co-Operative Milk Producers’ Societies Union is completely an
autonomous body consisting of representatives from milk producers as policy makers
• To produce continuous and remunerative market for the surplus milk in the rural
areas.
• To supply quality milk to customers in the urban areas at a competitive price.
• To provide the technical inputs necessary to produce good quality milk and to
facilitate increase in milk yield.
• To provide self employment to rural folk and to make them economically self
sustainable by which the migration of rural folk to urban areas is minimized.
• To prevent the role of the middle men in the milk business and to increase their
returns.
• To establish a bridge between rural and urban folk and to play a vital role in
changing he social and economic status of the rural folk.
3.5.5 Role of Diary Co-Operative Society
The dairy co operatives are organized in rural areas for the milk producers keeping
in view the domestic principles and values. These societies educate, guide, and support
the milk producers in dairy development activities.
3.5.6 Functioning of Diary Co-Operatives
The dairy co operative function all through the year in two shifts, this will provide
continuous market for the surplus milk produced and the payment for the milk supplied
will be distributed to the producers on the predetermined day.
Input activities include:
• Veterinary services like regular vaccination
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• Artificial insemination services
• Supply of balanced cattle feed and fodder slips
• Training facilities
3.5.7 Growth of the Union
The milk union which was established in the year 1977 with 100 functional dairy
co operatives collecting 10,300 Kgs of milk per day is procuring on an average 386462
Kgs per day from 1122 co operatives as on date with the increase in milk production the
Hassan dairy with the initial capacity of 60,000 KGPD was expanded to 120000 KGPD
during 1996.The union has also established three chilling centers with a chilling capacity
of 20,000 KPD and 100000 KPD.
3.5.8 Activities of Hassan Milk Union
1. Organization of dairy co operative societies: As at the end of March 2010, 1197
societies have been registered. Out of functional societies, 330 women societies
are functioning.
2. Membership Enrolment: As on 31st March 2010 173396 members have been
enrolled of which 71046 are small farmer48866 are marginal farmers, 22199 are
agriculture labourers and 31285 are other big farmers.
3. Milk procurement activities: The present average milk procurement from 1122
milk societies is 386462 Kgs/day.
3.5.9 Product Profile
Milk is marketed under Nandini brand name in different types. The pricing
adopted is mainly on four categories namely:
• Double Toned Milk – Rs 14 /1000ml
• Toned Milk – Rs 16 /1000ml
• Standardized (homogenized) Milk – Rs 18 /1000ml
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• Full Cream Milk – Rs 20 /1000ml
Apart from this, milk is marketed in 3 variants-
• Nandini Goodlife with 3.5% fat and 8.5% SNF
• Nandini Smart with 1.5% fat and 9% SNF
• Nandini Goodlife Slim with 0.5% fat and 9% SNF
Types of milk and milk products marketing by HAMUL
Nandini Toned Milk
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Karnataka’s most favorite milk, Nandini Toned Milk is a Fresh and pure milk
containing 3.0% fat and 8.5% SNF. Available in 500ml and 1 liter packs. Better to use
within a day from the date of pack. Maximum Retail Price is Rs. 13/- per liter.
Nandini Homogenized Toned Milk
Nandini Homogenized Milk is pure milk containing 3% Fat and 8.5% SNF. This is
homogenized and pasteurized. Consistent right through, it gives you more cups of tea or
coffee and is easily digestible. Available in 500 ml packets
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Nandini Full Cream Milk
Nandini Full Cream Milk, Contains 6% Fat and 9% SNF. A rich, creamier and
tastier milk, ideal for preparing home-made sweets and savouries- available in 500ml and
1 litre packs. MRP Rs. 15/- per litre
Good life
Cow's pure milk, UHT processed, bacteria free in a tamper-proof tetra-fino pack
which keeps this milk fresh for 60 days without refrigeration until opened. Available in
500 ml Fino and in 200ml bricks at premium stores across the state.
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Smart
Cow's pure milk, homogenized, double toned UHT processed milk bacteria free in
a tamper proof tetra fino pack which keep the milk fresh for 60days without refrigeration
until opened. At present the milk is being directly home delivered on request. Available in
500ml pack.
Slim
Cow's pure milk, homogenized, Skimmed. UHT processed milk bacteria free in a
tamper proof tetra-fino pack which keep the milk fresh for 60 days without refrigeration
until opened. Nandini Goodlife slim skimmed milk is 99.5% fat free. Available in 500ml
Fino and in200ml bricks at premium stores across the state.
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Shubham
Buffalo's milk, 100% pure pasteurized processed and packed hygienically. This
milk has 5% fat and 9% SNF. Available in 500ml and ltr, packs
Mysore pak
Fresh and tasty, Nandini Mysore Pak is made from
quality Bengal Gram, Nandini Ghee and Sugar. It's a delicious way to relish a sweet
moment. Available in 250gms.PP container shrink packed to preserve freshness. Can be
kept for 7 days.advised to consume fresh to enjoy its excellent taste
Nandini Curd
Nandini Curd made from pure milk. It’s thick and delicious giving you all the
goodness of homemade curds. Available in 200 grams and 500 grams packs. Nandini
butter is rich smooth and delicious. Nandini Butter is made out of fresh pasteurized
cream. Rich taste, smooth texture and the rich purity of cow’s milk, makes any
preparation a delicious treat. Available in 100 grams, 200grams and 500grams cartons
both salted and unsalted.
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Nandini Ghee
A taste of purity, Nandini Ghee made from pure butter. It is fresh and pure with a
delicious flavor. Hygienically manufactured and packed in a special pack to retain the
goodness of pure ghee, having Shelf life of 6 months at ambient temperatures. Available
in 200ml, 500ml, 1000ml, sachets and also in 5lts tins and 15.0 kg tins.
Nandini Butter
Nandini spiced buttermilk is a refreshing health drink. It is made from quality
curds and is blended with fresh green chillies, green coriander leaves, asafetida and fresh
ginger. Nandini spiced butter promotes health and easy digestion. It is available in 200ml
packs and is priced at most competitive rates, so that it is affordable to all sections of
people.
Nandini Butter Milk
Nandini butter milk is Rich, smooth and delicious. Available in 100 grams
(salted), 200 grams and 500 grams cartons both salted and unsalted.
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Cheese
Delicious Cheese, processed with utmost care to ensure the smooth and rich taste
of pure cheese. It's highly nutritious an excellent source of milk proteins and a rich source
of calcium. Need to be kept under refrigeration. Available in 100gms carton
Paneer
Pure and tasty dishes with Nandini Paneer! A fresh, nutritive product made by
coagulating pure milk, it is an excellent source of milk protein. Nandini paneer is ideal for
vegetarian dishes such as mutter paneer, sag paneer and various other dishes.Refrigerated
storage in preferable. Available in 200gms pack, specially packed in a five layer film and
vacuum packed to preserve its quality. Bulk packings are also available.
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Flavored milk
Sterilized flavored milk, a nutritious and healthy drink and an all-season
wholesome drink available in five different flavors - pineapple, rose, badam, pista and
natural orange. Apart from refreshing energy. Available in 200ml
Nandini Peda
No matter what you are celebrating! Made from pure milk, Nandini ‘Peda’ is a
delicious treat for the family. It is maintained at room temperature, for approximately 7
days. Available in 250grams pack containing 10 pieces each.
Gulab jamon mix
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Great way to those soft and juicy jamoon treats at home! Nandini Gulab Jamoon
Mix is made from Nandini skimmed milk powder, maida, soji and Nandini Special Grade
Ghee. Available in 100gms and 200 gms standy pouch with a five layer foil lamination
shelf life of 6 months
Khova
Khova is prepared out of fresh milk. It is an ideal base to prepare delicious sweets
at home like peda, Gulab Jamoon, Kalakand, Burfi, Gajar Halwa and the like. Nandini
Khova gives you a high nutritive value with large quantities of muscle building proteins,
bone forming minerals and energy giving fat and lactose. To be kept under refrigeration
available in 200gms vaccum packed in a special five layer pocu film Khova is also
available in bulk pack for marriages and other functions
Milk powder
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Enjoy the taste of pure milk! Skimmed milk powder made from pure milk,
processed and packed hygienically. Available in 50gms, 200gms, 500gms, 1kg and 25kg
pack
Cashew Burfi
Prepared using quality Cashew nuts, Khova and Ghee. It leaves a lingering
Cashew flavor in your mouth. Available in 250 gm in a P.P.Box, shrink wrapped to
preserve its freshness .shelf life 12 days
Nandini Basan Ladoo
It is a delicious indigenous product prepared from pure Ghee, Gramflour and
sugar added with cashews. Available in 250 Gms pack containing 6 Pieces. Shelf life 1
month.
Nandini bite
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A unique sweet. Cocoa based. Nandini Bite is a three-in-one sweet prepared by
using Mysorepak, Khova and dremed with Almond. Available in 25 gm Aluminium foil
packing. Shelf life 12 days
Nandini Set Curd
NANDINI SET CURD, thick and highly nutritive curd is made from 3% Toned
Milk with added imported bacterial cultures, filled into 200gm and 400gm cups and
allowed to set into curds. Imported bacterial cultures constitute curd forming bacteria of
high genetic abilities and release antimicrobial substances into curd imparting disease
resistance to consumers( probiotic characteristic). The curd apart from therapeutic in
nature has very high shelf-life and can be kept for 15 days in refrigerator without curds
becoming sour.
NANDINI SET CURD is competitively priced at Rs.7 per 200gm cup and at
Rs.13 per 400gm cup. Shelf life 15 days in refrigerator without curds becoming sour
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3.5.10 ORGANIZATION STRUCTURE
BOARD OF DIRECTORS - CHAIRMAN
MANAGING
DIRECTOR
(C.E.O.)
ADMINISTRATI
PERSONEL ON MANAG E
ASSISTANCE PROCUREMEN PRODUC TION MENT INFOR
DEPARTMENT FINANCE PURCHASE
T & INPUT (Dairy Plant) MARKE TING MATION
Sr. Staff SYSTEM
A- B- C-2 D-69 E-27 F-2 G-3
1 15 3 5 5 H-3
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3.5.11 Personnel Department
Administration
Deputy Manager
Establishment (Personnel)
Training/ Legal Cell
Domestic
Enquiry
Administrative officer
Officer in charge
Assistant
Manager
Office superintendent
Support staff
It plays a crucial role in an organization which is always referred as the strength of
the organization.
Recruitment:
Recruitment is made as per the cader strength approved by Registrar of co
operatives. And the said cader strength is within the preview of co operative act and rules.
Reservation policies of the government are being followed for recruitments.
Whenever Union goes for recruitment the necessary steps are being taken as per
the guidelines stated in its Bye law and proper advertisement will be given in the State
News papers for the posts required and all the processes are made as per Govt. norms and
Suitable candidates will be called either for written test or interview or both.
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Training:
Hassan Milk Union is having training facilities for its employees at various
reputed training centers and for new employees, they will be facilitated with one month
on the job training at their respective areas.
CTI (Central training institute), a unit of KMF, Bangalore, is one of the best
training centers having its own facilities with residential facilities providing training to
skilled and unskilled employees as well. Management development program to middle
level management officers of the milk union on various subjects related to dairy,
marketing, administration and procurement and input.
In addition to this, Hassan Milk Union deputes its officers and personnel for
different technical and non technical training in the following training centers:
• SRDTC(Southern regional demonstration and training center) for both technical
and non technical training.
• Mansinh institute of training, Mahsana, Gujrat, only for technical training.
• Vaikunt Mehta institute, Pune. For management development programmes.
• Institute of rural management, Anand.
• Regional institute of co operative management, BANG
• CII- Confederation of Indian industries, institute for quality- for food industrial
platforms are created.
Orientation programme:
The new employees are given 3 to 4 days orientation training program at CTI,
Bangalore, and a unit of KMF. This particular training is given to the newly recruited
employees irrespective of their cader.
Employee promotion:
It is clearly stated in the cadre and strength document which is approved by
registrar of co-operative societies. The employee promotion is dependent on the merit and
seniority basis. It is the mandatory method followed. To decide on this, the employee
education, obedience, carrying of the job and attendance are taken into consideration.
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Record maintenance:
Hassan Milk Union is having well establishment section under the administration
department which maintains and updates records and other details of each employee with
individual record book and file.
Leave:
Casual leave of 15 days per year and for new entrants 1 day per month for one
year is followed. Employees of the Hassan Milk Union are eligible for 30 days earned
leave in each year during their service and also once in 2 year block period they will be
given the option facility for surrender of leave of one month and to avail the encashment
facility. The accumulation of leave days at present is restricted to 240 days. HPL (Half
pay leave) facilities are available.
If any accident takes place during the working hours the special leave is given:
• Special leave: the rabies leave is given for the infected dog bite. And also the
blood donation leave for 1 day is given.
• Maternity leave: on condition, with payment.
• Extra-ordinary leave: depending on the service or any major health issues.
Conveyance Allowance:
The Hassan Milk Union is providing conveyance allowance to its employees who
are having two wheeler vehicles and commuter charges for those who are dependent on
public transport per month is fixed.
Uniform:
Uniform will be provided to the employees who are working in the factory and
this facility is extended to only up to the cader of Technical Officers.
Transfer:
The transfer facilities are given. It is in the hands of Managing Director. If the
transfer is on the request, employee is not entitled for cash benefits but if it is not on
request, he is entitled for cash benefits.
Retirement:
The retirement age is 60 years. But on health grounds there is a consideration.
And the 3 months prior notice is a must before leaving the job anytime before the
retirement.
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Retirement benefits:
A salary of 15 days per year of completed years of service is given. 3.5 lakhs
ceiling is applicable and all the gratuity announcements are according to government
notifications. Provident fund is as per the government norms. 12.5% toward provident
fund contribution per the entire employee.
3.5.12 Production Department:
Every morning by 9.30am, the scheduled is drawn depending on the consolidation
of all the information from different units. Entire milk has to dispatched before the next
raw milk comes in. All the availability options should be weighed and instant decisions
have to be taken. Presently the day to procurement on an average comes up to 2,50,000
litres per day. All the indents are moved there by 11am and this has to be intimated to the
packing division.
Packing material purchase is based on the integrated business plan. The rolls have
to be weighed and bought out because by the end of the month the statement has to be
prepared if the loss is 2% over and above the loss is recovered from the suppliers. If the
loss is >1% and <2% that loss is recovered from the packing contractor.
For each and every product the organization has fixed some standard.
For 500ml it is 45-55 micron.
For 1000ml it is 55-65 micron.
This comes in pre-printed rolls but the date of packing, batch number and machine
number is printed on the time of packing.
After the packing being done, it is handed over to the finished goods section then
dispatch starts. The longest route is Hassan to Kudremukh (180km) through an insulated
vehicle. The document from the last point has to be bought back. No credit services. Day
to day payments is being made. Only for milk pourers it is 7 days and sometime it even
goes up to 15 days. The statement is being made deducting the commission and the next
day’s indent also has to be collected.
In case of any eventualities other than natural calamities, it is accepted. Suppose
any negligence, accidents penalty is fixed.
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3.5.13 Marketing Department:
Marketing should be considered as the core business function in this competitive
world as it establishes, develops, and commercializes long term customer relationships
and helps in meeting organizational goals.
Pricing is a federal policy and KMF decides the marketing price of the milk end
the milk products.
KMF has adopted pricing mainly on four categories namely:
• Double Toned Milk – Rs 14/100ml
• Toned Milk – Rs 16/1000ml
• Standardized (homogenized) Milk – Rs 18/1000ml
• Full Cream Milk – Rs 20/1000ml
As Hassan Milk Union is procuring 4 lakhs milk per day and its local market
requirement is 1.2 lakhs Kgs/day. As such the excess milk is being sent to sister unions
and Interstate federations and balance if any will be sent for conversion into butter and
SNP.
3.5.14 Procurement Department:
The milk co operative societies will be organized in villages where there is excess
milk production. The extension staff of the union will visit the villages and conducts the
survey about the village population, animal population and the availability of the surplus
milk and report to the office for consideration. The office will issue necessary instructions
to organize the societies.
Then the first Gramasabha meeting will be conducted and select the promoters to
promote the Dairy cooperative in the village and with the permission of Registrar of
Cooperative with the recommendation of Milk union the Village Chief promoter will
permitted to collect the share capital and with all fulfilment of required norms then
proposal will be sent to registrar of co operative department for registration. On
registration, milk co operative society will be commissioned and starts procuring milk
from the producers. The milk procured will be transported through trucks to nearby
chilling centers and dairy where milk is processed further. The society will be provided
with veterinary services, AH services, feed and fader services, training and extension
services.
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The village dairy Cooperatives will receives payments for the milk supplied to
Union once in a week and the same will be distributed among its produce members every
week and day is fixed which is convenient to the concerned village.
3.5.15 Stores/ Purchase Department:
Purchase
Purchase/stores Officer
Sub staff
Hassan Milk Union is having a separate purchase department and purchases are
made based on the requirements of various department and purchases are made as per the
relation laid out.
Hassan Milk Union is having full pledged stores which supplies materials to
various based on the indents or requirements and the people who are working in the stores
are very well worked in inventory management. Both purchase and store departments are
working under the supervision of manager dairy.
Stores:
The storage place for almost all necessary goods which come into the factory
premises:
But here the store is the place where all these are there:
1. Packing materials
2. Stationery
3. Spares
4. Oil and lubricants
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5. sugar
6. Testing chemicals
7. Cleaning acids
8. Uniforms and Shoes
9. Cans for societies
10. Ledgers
The activity takes place in stores:
Requisition letter: First the manager of concerned department depending upon the
need for the goods sends a requisition letter to the manager dairy and then once approved
the same reaches the stores in charge, the purchase section places an order.
Purchase order: But for the goods regular nature depending upon the stock level,
the stores in charge takes up the responsibility to place order and have the materials ready
when ever required. Here in the co operative sector as per the transparency act if the
goods and where the capital expenditure is involved, the enquire letters are sent the
suppliers and who ever quotes the least and also with quality gets the order.
And the same purchase order copy goes to
1. the supplier
2. the store in charge
3. Accounts section
4. concerned user section
Purchase order also includes
1. Mode of payment after and before supply
2. Terms and conditions(taxes)
3. Delivery period
4. Mode of dispatch
Invoice:
Against the purchase order the concerned supplier gives the invoice. Once the
invoice is received the cross checking of materials as per the specifications purchase
order is done. The concerned department communicated about the goods and the
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concerned person gives a user section remark on the quality of the product. Hence the
goods received note is sent to concerned user section
3.5.16 MIS
Management Information System
Assistant Manager
System Officer
Support Staff
The main activity of the MIS department in the organization is to act as the
information source for all the levels of management for the decision making in different
situation. Hence to say the integration of information from all the departments for the
decision making for all the three levels which exist in the organization:
1. Top level
2. Middle level
3. Lower level
The information collected from the dairy and various chilling units on on-line and
information collected from Marketing on every day will be processed and send to KMF
every day and also monthly procurement and input wing and the data related to artificial
insemination and progress achieved in Fodder and Feeds division are collected and
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necessary information will be prepared and sent to various department as well will be
submitted to CEO and other section heads to enable them to take necessary action and
also with the help of these data MIS department will prepare the annual Targets to the
Dept of Procurement and Input and Marketing.
Also, all these data is given to the MIS department and the integration on monthly
basis is taken up and the report as sent to the managing director and same place before the
monthly meetings held of all the milk unions.
3.5.17 Finance Department
Source of finance to start KMF and its units is from World Bank channels through
agreement between NDDB under Tripartite agreement between NDDB, KMF and
Government of Karnataka.
Now, source of funds are share capital and realization from sale proceeds of milk
and milk products. As on 31.03.2010 the paid up capital was 765.32 lakhs and 218.03
lakhs loan was taken for operating.
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3.5.18 Production Department:
The dairy works in 3 shifts to receive milk in the morning and evening shifts. The
milk received from DCS in cans will be tested for quality and weight is recorded. The
payment will be made based on the quality and the quantity. The milk received in tankers
will be weighed and tested and pumped into chiller and stored in insulator storage tank.
The local market needed quantity will be pasteurized and stored in insulated HMST for
packing toned milk, double toned milk and standardized homogenized milk. Apart from
this, union also produces ghee, peda, flavored milk, curds and butter milk.
The excess fat in the milk will be separated in the form of cream and issued for
butter making. The cream breaks into butter and butter milk where butter is issued for
ghee making and butter milk is tested for fat/COB (clout on boiling) and it will be
reprocessed or will be drained out. Based on the market demand, butter is drawn for ghee
production and same will be packed as per requirement.
3.5.19 Channels of Distribution
The network of distribution of milk was founded to be very systematic and has
made distinct role in the successful marketing of milk.
The processed and pasteurized milk is first packed and stored and then distributed
to the target customers.
Processing and manufacturing
Storage
Dealers or Retailers
Consumer
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Power
The KPTCL supplies the power up to 325 kilo watts per month. In case of
shortage in supply diesel generator is used.
Vehicle
The union owns 5 milk tankers. In addition to this, it has one car, and two jeeps.
3.5.20 ACHIEVEMENTS
• Hassan milk union is procuring milk from all the 13 taluks of three districts and
selling quality milk in all the taluks and small towns.
• The union and all the dairy co operatives are being managed by the democratically
elected boards from among the milk producers.
• The technical input to dairy co operatives and the dairy plants are managed by
well trained, committed professionals and technical team.
• 91% of the milk co operative societies are operating under profit
• The union has successfully implemented the animal induction program for SC ST
and OBC since 1996 with the financial assistance from central and state
governments and rendered direct loans to the beneficiaries at lower interest rates.
• 254 women dairy co operatives (as on May 2009) have been organized since 1997
under support training and education program(STEP)
• The union has also implemented mini dairy scheme and bring entrepreneurial
environment in the rural area.
• The union has set up Artificial insemination facilities for dairy co operatives.
• The union has rendered emergency veterinary services round the clock.
• The union has implemented foot and mouth disease control program(FMDCP)
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• Fertility camps are being conducted once in three months by inviting experts in
the field.
• The union supplies quality fodder slips and seeds through the year and facilitates
the availability of green fodder.
• The union is insuring the life of milk producers and dairy co operative staff with
the co ordination from Life Insurance Corporation and National insurance
company since 1997-1998 under “samajika suraksha yojana”.
• The union has launched the “YESHASHVINI” program to the milk producers
wherein the milk producers are provided with the best available medical facility at
free of cost.
• Smokeless chula have been provided to the milk producers with an intention of
improving the health of rural women folk.
• The union has successfully implemented the Total energy management program
and Total quality management program (quality excellence from cow to
consumer) since 2001 respectively.
• Quality awareness programs are being conducted regularly for school children,
house wives and consumers.
• The union has got ISO 9001:2000 certification from TUV India, Mumbai.
• The union has got Energy Conservation Award
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3.5.21 SWOT Analysis
Strengths
• Procurement and Input( P&I) network
• Goodwill
• ISO 9001:2000 certified
• Second largest producer
• Vast market
Weaknesses
• WTO standards
• Advertisement execution in its early
• Early stages of automation and computerization
Opportunities
• Enter rural market
• Neutraceuticals
• Exports
Threats
• Entry of big players
• WTO standards
• Government policies
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4.1 HASSAN DAIRY: DIFFERENT ACTIVITIES AND
COSTS INVOLVED
Hassan dairy in fact a liquid milk plant which pasteurizes milk and market it in
local market as well as nearby areas. It also fulfill its commitments for inter dairy
dispatches. The various activities and their costs involved in the process are as follows:
4.1.1 PROCUREMENT AND INPUT
Hassan Milk Union procures milk dairy co-operative societies (DCS), its
chilling centres and in scarcity through inter dairy. Two axis pricing are followed here.
Milk is procured in cans through contracted vehicles from DCS, while tankers are used
for transporting milk from chilling centres and inter dairies. Input facilities like veterinary
services, drugs, feed and fodder are provided by union to enhance the milk production.
Costs involved in procurement and input
1. Cost of milk
2. Procurement transport cost ( for DCS milk only)
3. Manpower ( supervisory and extension work expenses)
4. Input expenses like veterinary, drugs etc.
5. Chilling centre expenses
6. Transportation expenses from chilling centres and inter dairies
4.1.2 RECEPTION AND PROCESSING
DCS milk is received at dock and chilled immediately for further processing. Milk
from chilling centres and inter dairies is already chilled, therefore directly taken into
RAW MILK TANK (RMT). Milk is pasteurized and standardized as per production
planning. Excessive fat in the form of cream is used for ghee making.
Costs involved in reception and processing
1. Manpower required for reception and processing
2. Stores items like chemicals, detergent, spares, oils and lubricants
3. Repair and maintenance expenses
4. Quality control expenses
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5. Steam
6. Electricity
7. Refrigeration
8. Water
9. Depreciation of plant and machinery
10. Other expenses
4.1 3 MANUFACTURING OF PRODUCTS
Liquid milk (sachet milk)
Sachet milk is standardized for 3.5% FAT and 8.5% SNF. This milk is packed in 1
litre and half litre pack and supplied for local sales and nearby cities.
Cost involved in sachet milk
1. Cost of standardized and pasteurized milk
2. Repair and maintenance of sachet machine and air compressors
3. Stores items
4. Electricity
5. Refrigeration/cold storage expenses
6. Water
7. Cost of pouch film used
Inter dairy dispatches
The composition of milk varies as per requirement by different dairies. Some milk
is also transferred to its own unit Kudige. However milk accounting is done as inter dairy
sales.
Costs involved in inter dairy dispatches
The only cost involved is cost of raw milk or pasteurized milk.
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Ghee
The excess fat recovered during standardization of milk is mainly used for ghee
making. Fat recovered by separation of COB+ve and churning of curdled milk is also
used for the process. Cream is curdled in butter churn and the butter is heated in ghee
kettle for ghee preparation. Ghee packed in 200 ml, 500 ml and one litre sachets as well
as in 15kg tins.
Costs involved in the process
• Cost of good cream, COB +ve milk and curdled milk
• Repair and maintenance of the equipments
• Stores items like detergents, muslin cloth etc.
• Steam required in butter melting and in ghee kettle
• Electricity
• Refrigeration for sprinkling chilled water on butter churn
• Cost of packaging: Tins, ghee bottles and corrugated boxes
• Water
Peda
Presently a very little quantity of peda is prepared. A steam vat is used for the
purpose. The approximate composition of Peda is FAT, SNF and 6% sugar. It is packed
in parchment paper cover.
Costs involved in peda making
• Cost of the milk
• Steam required in steam vat
• Sugar
• Packaging ( parchment paper bag )
4.1.4 SELLING AND DISTRIBUTION
The main task of marketing personnel is dealing with city supply and sales in
nearby areas. For local sales some vehicles have been hired. Some procurement vehicles
are also engaged in distribution in nearby areas. Tankers are used for inter dairy sales.
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S.D costs involved in sachet milk sales
• Distribution cost( hired vehicles )
• Parlor expenses
• Advertisement
• Commission on sales
S.D expenses involved in I/D sales
More or less transportation expenses are involved (tanker expenses)
S.D. expenses involved in ghee sales
• Hired vehicle expenses
• Advertisement
• Parlour expenses
• Commission on sales
4.1.5 ADMINISTRATION
To carry out all the activities smoothly administration plays a vital role.
Establishment, finance and accounts, MIS, stores, security, time office, canteen and
horticulture are included in administration.
Costs involved in administration
• Manpower
• Staff welfare
• Post and telegraph
• Consumables
• Telephone expenses
• Interest on capital
• Depreciation of office building
• Other miscellaneous expenses
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4.2 EXISTING SYSTEM OF COSTING AT HASSAN DAIRY
4.2.1 COST FORMAT
In Hassan Co-Operative Milk Producers Societies Union ltd., cost sheet used has
following features.
1. This cost sheet is only meant for costing liquid milk. Ghee and peda costing is not
being done.
2. Material cost is calculated by summing cost of milk produced through DCS and
inter dairies, procurement transport cost(PTC), AI and drugs, salaries of P and T
wing and chilling centres expenses and then deducing the cost of excess fat
recovered in form of ghee and cost of milk issued for product(peda) manufacturing
from that total. Opening and closing balances of milk are also taken into accounts.
Ghee is valued at inter dairy rates ie., rs.40 per kg, material cost is calculated per
litre of milk.
3. Processing cost per litre is calculated by adding processing expenditures like salaries
and wages, consumables chemicals, detergents and spares, services of powers fuel,
maintenance of plant and machinery, depreciation of plant and machinery and other
miscellaneous expenses like vehicle expenses etc. this sum of processing expenditures
is divided by total quantity( in litre ) of milk produced.
4. Administration cost is composed of salaries, welfare expenses like uniform, canteen
etc., communication, vehicle maintenance, interest on capital, depreciation of
buildings, office equipments and some other miscellaneous expenses like computer
charges, audit fee, bank charges etc. for arriving unit administration cost, the total
expenses are divided by total sales.
5. Selling and distribution expenses include packing materials, crates, transportation cost
for administration, depreciation of distribution vehicles, machinery/equipments,
services for parlour, commission on sales and other charges like agmark, unit cost for
selling and distribution is calculated by dividing the total cost incurred to total sales.
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6. The total cost of production per litre is calculated by unit costs of materials,
processing, administration and selling and distribution.
4.2.2 ADVANTAGES OF THE SYSTEM
1. It involves less reporting from different department
2. Time required in preparing monthly cost statement is less
3. It gives quick results
4. It involves less computations
4.2.3 DISADVANTAGES OF THE SYSTEM
1. The costing only meant for costing liquid milk and does not give an idea of cost of ghee
and peda
2. The costing of liquid milk is also ambiguous as it does not give separate cost figures for
sachet milk and inter dairy dispatches.
3. The cost of milk per litre does not give any indication about its composition which
makes this figure with no significance.
4. All the fixed costs and variable costs are clubbed together which does not give clear
indication of cost of the production, particularly operational cost and this may lead to
faulty decision endangering the viability of the organization.
5. While calculating material cost valuation of ghee at inter dairy rates is not logical and
violate the accounting principles of inventory valuation.
6. Existing cost sheet does not exercise any control as the unit cost, for particular activity
is sum of fixed and variable cost, so the operational efficiency cannot be measured for a
particular activity which is only reflected in unit variable cost.
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7. While calculating material cost, DCS milk and inter dairy receipts are clubbed together,
which gives a false low procurement and input expenses per litre of milk reserved. In
fact all P and I expenses should be attributed to DCS milk.
8. In case of processing cost the expenses of processing section, sachet and product section
are clubbed together to calculate the cost of liquid milk.
9. In case of selling and distribution expenses inclusive of packaging material is not at all
logical particularly adding cost of ghee film and corrugated boxes in costing of milk is a
gross mistake and lead to enormous confusion.
10. As in case of inter dairy sales or stock transfer to Kudige, the role of marketing people
is very less. Their energies are being used mainly for local sales but by giving all credit
of their sales and transfers and their unit selling and distribution cost gives a false
picture of their efficiency. In fact selling and distribution expenses should be allocated
to local sales only.
11. Finally, the present system of costing is vague and leads no where. The unit cost figure
does not even tell that whether the milk is packed or loose and what is its composition.
Their current system also is not useful in decision making as it does not give separate
operation cost of different product. This system also does not give performance criteria
for different activities nor does it give base for inventory valuation. So there is a lot of
scope for improvement.
4.3 PROPOSED SYSTEM OF COSTING
4.3.1 Adoption of variable costing
After observing many flaws in the existing system of costing and considering
organization needs, the variable costing system was found most suitable for the union. In
the existing system, absorption costing has been followed which does not give any clear
picture of operational costs involved in various products. Variable costing could be a
better solution.
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4.3.2 Advantages of variable costing and contribution approach
1. Variable costing provides the operational cost of individual product. In the short run, if
a product recovers more than its variable costs, it is making contribution to overall
profit. In this way management can decide whether a product should be dropped.
2. Contribution-margin ratio often helps management decide on which product to push and
which is de-emphasized.
3. Variable costing aid to production planning and help in decision making regarding how
to use a given set of resources (men, material and machine) most profitably.
4. Variable costing is extremely helpful in milk unions where selling prices here are firmly
established, because the principal problem for the management is how much variable
cost is allowable and how much volume can be obtained.
5. Variable costing will also help in performance evaluation of various cost centres as per
unit variable cost reflects their efficiency.
6. Variable costing also act as cost control tool as it is a controllable cost which motivate
the cost centres for cost reduction.
7. It will give a base to union for price bargaining with Karnataka milk federation, the
apex body who fixes the price for milk and products.
4.3.3 Disadvantages of the System
1. It is an expensive technique to maintain records and staff for cost ascertainment
2. Limited applicability
3. Not reliable
4.3.4 Other provisions
As considering some very specific feature of the organization provisions of
absorption costing are also made. As Hassan milk union has separate unit “Kudige”
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which received the milk from Hassan dairy for catering city supply. The unit prepares its
own P and L accounts as pricing of these stock transfers require absorption costing as
milk union want to realize total cost incurred.
4.4 PROCEDURE OF COSTING
4.4.1 Studying the need of the organization
Existing system of costing is very rare and only meant for liquid milk costing,
fixed cost and variable cost clubbed together which do not give any idea about pricing,
production planning and cost control. Organization wants costing of individual products
like sachet milk, inter dairy milk, stock transfer to Kudige, ghee and peda. To know
operational cost will also be of great significance for organization in price bargaining
with KMF, cost control and production planning. Separate costing for stock transfer to
Kudige would give them a base to charge the cost as they cant charge project from its
own unit. Cost centre wise unit variable cost would produce a clear picture of operational
efficiency of different cost centres. Presently, ghee is valuated at inter dairy prices to
arrive at cost of liquid milk which is not logical variable costing would provide the cost of
ghee produced which could be used for inventory valuation.
4.4.2 Identification of cost centres and service centres
Based on the nature of services provided following cost/responsibility centres are
identified
Milk procurement
It can be further divided as follows
• Direct milk procurement at dock
• Raw chilled under received from chilling centres
• Inter dairy receipts
• Technical inputs
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Milk processing
It includes milk reception at dock, pasteurization, standardization etc
Sachet
It includes the manufacturing sachet milk. Cost of operations and maintenance of
sachet filling machine, air compressors and crate washer is included here.
Product
Ghee and peda making comes under this cost centre
Inter dairy and Kudige disposals
There is cost, related to inter dairy dispatches are considered for arriving cost per
kg of inter dairy dispatches.
Service departments again can be identified on the basis of the nature of the
service they provide. Following are the service departments. There is no separate
engineering department at Hassan dairy. Boiler, refrigeration, electrical etc are
independent sections. Therefore all are cost centres.
Boilers
Service of this section ie., steam is used at reception dock, processing and product
section. Accordingly cost apportionment can be made.
Refrigeration
This section provides services to processing and sachet section, cost
apportionment can be done in between these two users departments.
Electricity
This department serves to almost all the cost centres and service centres. Besides,
purchasing the electricity, it is generated also.
Maintenance/engineering
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Services of this section are mainly utilized in processing and product sections.
Main costs involved are of spares and lubricants.
Borewell/ETP
This section also provides water to almost all users as well as service sections.
Marketing
This department takes up the selling and distribution of the liquid milk and
products. Main emphasis is on sachet milk marketing.
Administration
All services related to finance and accounts, stores, administration and horticulture
are included here. There is a little element of variable cost, so all these cost are considered
as fixed.
4.4.3 Cost identification
After identification of cost centre sand service centers, the next step is
identification of expenses pertaining to each activity. The expenses are of fixed as well as
variable in nature. As the main emphasis is put on variable costing instead of absorption
costing, so identification of these two costs separately becomes important. It is
emphasized that deeper we go in identification of direct expenses, more accurate will be
the costing. Direct costs like purchase cost of the milk, procurement, transportation cost,
consumable stores items, spares, repairs and maintenance can be easily identifiable with
different activities but estimation of utilities like steam, water, electricity and refrigeration
become difficult when sub meters at various activities are not provided. However, some
technical mean can be used for the estimation of the utilities. Fixed costs like salaries and
benefits, depreciation, interest on loans and other fixed administrative costs are kept
separate, which further can be used for determination of break even points and net
projects.
4.4.4 Cost allocation of service departments
Cost of service departments like electricity, refrigeration and water, can be
measured through technical mean. As in case of electricity, total 1WH used by individual
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55. A Study on Formulation of Costing System
activity would give a base for apportionment of the cost. Unit cost per KWH could be
calculated by dividing total expenses (variable) incurred to number of KWH/units
produced. In case of refrigeration, total k.cal heat extracted by a particular activity or
section can be on allocation base. Unit cost of k.cal again can be calculated by dividing
total expenses of refrigeration with total kcal produced. Cost of steam can be allocated on
the basis of steam consumption at various equipments/activities condensate collection at
each equipment will give the steam consumption for a particular activity like pasteurized
section, ghee making etc. estimation of water consumption for various activities is
difficult as the consumption varies with the availability and measurement is also
cumbersome. So an empirical approach has been taken. Various sectional heads in charge
of bore well section can be discussed for approximate water consumption at various
activities and accordingly water cost can be allocated to various sections. Cost per kilo
litre can be arrived by dividing total cost of bore well section with total kilo liter water
drawn. For estimation of maintenance cost, it can be directly identified through log book
which clearly indicates the use of spares, oils and lubricant at various departments
separately. So this cost can be identified directly. Cost of marketing is mainly composed
of distribution cost (transportation), parlour expenses, advertisement etc., these costs are
common both for sachet milk and products and for the allocation of these variable costs a
suitable base is required. Total realization seems most suited allocation bases.
Administration expenses are mainly fixed in nature so no need of allocation, however to
be recovered from total contribution from all the products.
4.4.5 Determination of pre split off cost
Dairy products are joint products and up to a certain split off point they
accumulate costs which are difficult to separate. The pre split off cost of milk includes
purchase cost of milk, procurement transport cost, chilling cost and pasteurization cost.
Again we are including only variable costs. P and T activity expenses are also included in
pre split off costs as in case of Hassan milk union. These vary with the level of activity
like more the viable DCS or functional DCS more will be the procurement and naturally
more will be the P and I expenses like drugs, veterinary expenses, AI etc. processing costs
in case of pre split off costs are mainly of costs of utilities ie., steam, electricity,
refrigeration and water.
4.4.6 Product/disposal-costing
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56. A Study on Formulation of Costing System
For product costing, total variable cost of various products are calculated. But for
that purpose cost of milk used is required which can be obtained by allocating pre split off
cost to various products and disposals. As Hassan Milk Union follows two axis formulas
for milk pricing, it seems reasonable to allocate presplit off cost on the basis of the
Equivalent fat units (EFU) used by different products/disposals. Other variable costs
involved in product costing are cost of utilities, repair and maintenance, consumables and
packaging materials. Selling and distribution cost for individual product should be
computed separately. Selling and distribution cost can be arrived on the basis of sales
only. The procedure would give separate cost figures for sachet milk, inter dairy
dispatches, stock transfer to Kudige unit, ghee and peda. All fixed costs of administration,
processing, procurement and marketing should be clubbed together and can be used to get
BEP and net profit by using “CONTRIBUTION APPROACH”. As Hassan Milk Union
has a special feature in the form of its own unit Kudige, which takes milk from Hassan
dairy to meet their demand for local sales. Hassan dairy cannot earn profit from its own
unit, but on the other hand they went to recover all the cost of the milk, including fixed
costs. For that purpose, allocation of the fixed cost over different products/disposal
becomes essential. As in” contribution approach” all fixed costs are charged against sales
and these are non inventor able. Total realization of individual products will be the
appropriate allocation base. So we can arrive at unit variable cost as well as unit fixed
cost for individual products. This approach would be useful in both of the market
environment be competitive and monopoly. Unit variable cost would be helpful in
product planning, price decision and cost central, while unit fixed cost would give a base
in price fixation in case of monopoly situation.
4.5 IMPLEMENTATION OF THE SYSTEM
For the implementation purpose, the data related to cost are collected 2008-09. the
data are classified into fixed and variable cost and variable cost were identified with
different activities.
4.6 DETERMINATION OF THE PRE SPLIT OFF COST
Material cost is determined by the milk procured, procurement transport cost
(PTC), cost of P and I activities, chilling centre expenses and cost of inter dairy receipts
(cost sheet: materials)
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57. A Study on Formulation of Costing System
Processing cost is arrived by taking up cost of consumables, chemicals,
detergents, repair and maintenance and most significantly cost of utilities ie., steam,
electricity, refrigeration and water. For processing cost see cost sheet B. addition of these
two costs give us the presplit off cost of the milk value of opening balance of the milk
which is already pasteurized and don’t need any further processing is added in pre split
off cost(see cost sheet c)
4.7 PRODUCT COSTING
Share of presplit off cost plus the post split off costs give the product cost. For the
apportionment of presplit off cost, we choose base as the no. of EFU in particular product
or disposal. Cost per EFU is calculated by dividing total cost of presplit off cost with no.
of EFU present in presplit milk.
The formula for EFU is,
Equivalent fat unit = fat + 2/3*SNF
After apportioning the presplit off cost to sachet milk, I/D milk dispatches, stock
transfer to Kudige, ghee and peda, post split off cost is taken into account.(see cost sheet
C)
4.7.1 SACHET MILK
Costs involved in sachet milk are mainly utility cost and packaging cost. Other
costs are repair and maintenance, stores items etc.
Air compressor and crate washer are associated equipment with sachet filling
machine. Operational cost of these two is also included here. Power consumption in
sachet is mainly air compressor run. However crate washer use steam. Again utility costs
are decided by technical means (see cost sheet D). for packaging pouch film (LDPE) is
used.
4.7.2INTER DAIRY DISPATCHES
Costs involved here are cost of standardized milk and transportation expenses.
Milk is taken through tankers. Transportation cost is taken through tankers log book.
4.7.3 GHEE
For arriving on cost of ghee various costs involved in process were considered
like presplit off cost i.e., cost of good cream, COB+ve milk, and curdle milk is taken into
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58. A Study on Formulation of Costing System
account. Other costs involved were steam, electricity and water cost, consumables cost
(all are post split off costs). Ghee is packed din glass bottles of 500 Gms. That cost also
attributed to ghee. Corrugated boxes are used to pack 12kgs of ghee (24 bottles)
4.7.4 PEDA
Presently a little quantity of peda is being manufactured because of the capacity
constraint. However, costing of the peda was also done. It is packed in the parchment
paper bag (25gm each)
4.8 EXISTING COST SHEET AT HASSAN DAIRY
SL.NO PARTICULARS HASSAN DAIRY(qnty
in liters)
I QUANTITY PARTICULARS:
1.0 OPENING STOCK 24342
1.1 pasteurized whole milk 24342
1.2 RSM prepared
1.3 RCN prepared
1.4 Processed milk for marketing
2.0 RECEIPT/PROCESSING 2068073.5
2.1 Raw milk received/procured
Good milk 2023695.0
Inter dairy
COB+ve 6288.0
Good milk from DCS
Curds 1884.0
Milk std. to reduce SNF% in milk/flush gain 36206.5
2.2 RSM prepared
2.3 RCM prepared
2.4 total quantity of milk processed
3.0 concerned commodities used
3.1 S.N.F
3.2 butter oil
3.3 white butter
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59. A Study on Formulation of Costing System
4.0 DISPOSALS 2068194.5
4.1 quantity of sold milk
I/D 8020.0
1041279.0
Local 963251.0
4.2 quantity of milk used for products 394.5
4.3 sourage and curdling loss cream extracted 47078.0
4.4 handling loss
5.0 CLOSING STOCK 24221.0
pasteurized whole milk 24221.0
raw milk
RSM prepared
RCM prepared
Sl.no Particulars qty value Cost/ltrs
II EXPENDITURE/COST
PARTICULARS
1.0 materials 1992395.0 kq 8586373.51 4.42
1941103.0 ltr
1.1 opening stock of milk 24342 120645.60
pasteurized milk
raw milk
1.1.1 butter milk
1.2 cost of milk procured I/D, 2031867.0 8678355.55
DCS
1.3 cost SMP/ butter oil/white
butter used
1.4.1 procurement transport 518632.48
1.4.2 p&I wing activities
1.5 salary/wages including 376050.15
ESI., PF, bonus, etc of p and i
wing
Chilling centre
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60. A Study on Formulation of Costing System
1.6 consumables, electricity 33863.53
and repairs of PC/CC
1.7 depreciation of plant and
machinery, building
1.8 less realizable value of
1.9 Excess fat recovered(ghee) 24221 968840.00
COB+ve separated
1.9.1 Milk used for products 3945 2840.40
1.9.2 Closing stock of milk 34198 169493.40
1.9.3 Sourage and curdling
milk
1.9.4 Handling loss 518867.72
2.0 PROCESSING 2031867.0kg 0.26
1974603ltrs 322541.76
2.1 salary, bonus of staff
employees, ESI 8092.12
2.2 consumables, chemicals
and detergents excluding
packaging material 110242.00
2.3 services of power, fuel,
wastage 17569.27
2.4 maintenance of plant and
machinery 59000.00
2.5 Depreciation of plant and
machinery 1422.57
2.6 others
3.0 ADMINISTRATION 2012550.0kg 709888.69 0.36
1955831.00ltrs 197259.41
3.1 salaries 51051.98
3.2 welfare expenses 25958.78
3.3 communication( postage,
telephone and stationary) 362124.50
3.4 vehicle maintenance 22550.00
3.5 interest on capital 50944.10
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61. A Study on Formulation of Costing System
3.6 dep. Of building, office
equipments
3.7 building, taxes, insurance,
stipends, uniforms etc.
3.8 others 803653.99
4.0 SELLING & 1955831.00 0.41
DISTRIBUTION 392231.73
4.1 packing & distribution
materials( files, bottles and
crates) 137273.68
4.2 salaries, bonus, wages 168276.18
4.3 transportation for
distribution 21750.00
4.4 dep. & distribution
vehicles, equipment/machinery 12565.00
4.5 services for parlour 67966.90
4.6 commission on sales 3591.00
4.7 AGMARK charges/others
TOTAL COST/LTRS 5.45 rs
4.9 ESTIMATION OF ELECTRICITY CONSUMPTION FOR
VARIOUS RESPONSIBILITY CENTRES
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62. A Study on Formulation of Costing System
1. Estimation of cost of electricity per unit
Electrical section provides services to various sections in the form of electrical supply.
Here, electricity is purchased as well as generated. In case of purchased electricity unit
cost is not fixed. It is based on a number of criteria like maximum contracted demand,
consumption in late hours, peak demand, actual consumption etc.
For calculating unit cost of electricity, purchase expense and generation expenses of
electricity are clubbed together and divided with total units of electricity used. Only
variable expenses are taken into account
In the year 2008-09
Total consumption of electricity 2158932.00
Power charges 11681996.34
Unit cost of electricity 11681996.34/2158932.00 = 5.41 rs
2. Estimation of cost of electricity for various responsibility centres
Apportionment of electrical charges to various activities becomes difficult in the absence
of submeters. So far a fair computation an empirical approach is adopted which is as
follows
a. computation of operating load of each equipment/activity like reception, pasteurization,
separation, packaging, ghee making, borewell, refrigeration, boilers etc.
b. computation of running hours of each equipment of a particular activity per day.
However in case of some activities log book is maintained like refrigeration which can
furnish data on any time. Here, personal observation and discussions with sectional heads
is required.
K.W.H consumption can be calculated as follows
K.W.H = load in H.P * operating hours * 0.8 * 0.746
Where 0.8 is the efficiency and 0.746 is the conversion factor
Efficiency depends on the maintenance and age of the equipment which can be varied.
Cost of electricity consumed in various processes is then calculated multiplying KWH
consumption with unit cost of electricity.
1. COST SHEET A: MATERIALS
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63. A Study on Formulation of Costing System
quantity Var.cost Unit var.cost
Materials 121812756.0 1626058886.39 13.35
1.DCS milk
1.1 milk purchased 121812756.0 1575757984.95 12.94
1.2 p and I expenses 7790809.63 0.06
1.2.1 procurement transport cost(ptc) 42510091.81 0.35
1.2.2 p and I activities
1.2.3 chilling centre expenses
2.0 inter diary receipts 0.00
2.1 milk received 0.00
2.2 transport expenses 0.00
2. COST SHEET B: CHILLING COST
quantity Var.cost Unit var.cost
Chilling 121812756.0 16486073.40 0.14
1.consumables,chemicals, Detergents etc (Stores 121812756 3601134.53 0.03
items)
2. repairs and maintenance 121812756 5581454.90 0.05
3. utilities
3.1 steam
3.2 refrigeration 121812756 5812718.00 0.05
3.3 electricity 121812756 1490765.97 0.01
3.4 water
3.5 other expenses (vehicle expenses)
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