A REPORT ON AAVIN COOPERATIVE MILK PRODUCTS AND ITS MARKETING

STRATEGIES

Project Report submitted to

The Department of Commerce and International Trade in
partial fulfilment of the requirements for the award of the degree
B.COM (PROFESSIONAL ACCOUNTING)

M.JOSPHIN BAKITHA
URK18COM008

Under the guidance of

DR.K. ARUNA
ASSISTANT PROFESSOR

Karunya Institute of Technology and Sciences

[Declared as a Deemed University under sec.3 of the UGC Act, 1956]

April 2021:

1
 CERTIFICATE

This is to certify that the project report entitled ‘A REPORT ON AAVIN COOPERATIVE MILK
PRODUCTS AND ITS MARKETING STRATEGIES’ is a Bonafide record of work done by M.
JOSPHIN BAKITHA URK18COM008 under my supervision and submitted in partial fulfilment for the
award of the degree of Bachler of commerce of Karunya Institute of Technology and Sciences.

Place: Coimbatore Research Supervisor

Date: 19/04/2021

External Examiner Internal Examiner

Head of the Department

 2
DECLARTION

I, M. JOSPHIN BAKITHA hereby declare that the project report entitled ‘A REPORT ON AAVIN
COOPERATIVE MILK PRODUCTS AND ITS MARKETING STRATEGIES’ is a Bonafide record of
the original research work carried out by me in the Department of Commerce and International Trade,
Karunya Institute of Technology and Sciences and that it has not been submitted earlier elsewhere for the
award of any Degree, Diploma or Fellowship.

• I understand that KITS shall hold the copyrights of all these projects / dissertations submitted to the
University.

• I will republish the entire thesis / extracts of the report only with the permission of LITS and I am
liable to pay 40% of royalty to KITS.

• If I engage in documenting any research findings with an intention of publishing it for commercial
purpose, I shall obtain a NOC from the office of the registrar prior to engaging in such activities.

Place: OOTY M. JOSPHIN BAKITHA

Date: 19/04/2021 Signature of the Candidate
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ACKNOWLEDGEMENT

In the present world of competition there is a race of existence in which those are having will to come
forward succeed. Project is like a bridge between theoretical and practical working. With this willing I
joined this particular project. First of all, I would like to express my special thanks of gratitude to my
professor Dr. K. Aruna (Karunya Institute of Technology and Sciences) as well our H.O.D, Dr. C. Samuel
Joseph who gave me the golden opportunity to do this wonderful project on the topic ‘A REPORT ON
AAVIN COOPERATIVE MILK PRODUCTS AND ITS MARKETING STRATEGIES’ which also helped
me in doing a lot of research and I came to know about so many new things. I am really thankful to them.

Secondly, I would also like to thank my parents and friends who helped me a lot in finishing this project
within the limited time. I am making this project not only for marks but to also increase my knowledge.
THANKS AGAIN TO ALL WHO HELPED ME.

M. JOSPHIN BAKITHA
B. Com (P A)
URK18COM008
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CONTENTS

CHAPTER TITLE PAGE No.

I INTRODUCTION 9
1.2 IMPORTANCE OF THE STUDY 10
1.3 OBJECTIVE OF THE STUDY 10
1.4 METHODOLOGY OF THE STUDY 10
1.5 POPULATION OF THE STUDY 11
1.6 SCOPE OF THE STUDY 11
1.7 LIMITATION OF THE STUDY 11
1.8 CHAPTER SCHEME 11
II PROFILE OF THE COMPANY
2.1 COMPANY PROFILE 13
2.2 ESTABLISHMENT 15
2.3 VISION 15
2.4 MISSION 15
2.5 PRODUCT DISCRIPTION 16
2.6 MARKETING AND SALES OF THE COMPANY 27
2.7 PROCESS OF PAYMENT 29
2.8 NUMBER OF EMPLOYEES 31
III ANNALYSIS AND INTERPRETATION
3.1 RECEIPT AND DISBURSEMENT STATEMENT 33
3.2 TRADING ACCOUNT OF THE COMPANY 35
3.3 PROFIT AND LOSS ACCOUNT OF THE COMPANY 36
3.4 BALANCE SHEET OF THE COMPANY 38
3.5 COMPARATIVE STATEMENT 39
3.6 COMMOMSIZE STATEMENT 41
3.7 RATIO ANNALYSIS 42
3.8 DATA ANNALYSIS AND INTERPRETATION OF 45
CONSUMER BEHAVIOUR
IV FINDINGS AND SUGESTIONS
4.1 FINDINGS 57
4.2 SUGESSTIONS 58
4.3 CONCLUSION 59
V BIBLIOGRAPHY 60
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List of Tables

Page
Sl. No Title
No.
1 PERCENTAGE OF FAT IN MILK 19

2 PRODUCT PROFILE OF MILK PEDA 21

3 PRODUCT PROFILE OF FLAVORED MILK 22

4 CHEMICAL COMPOSITION OF GHEE 25

5 COMPAITION OF ICE CREAM 26

6 STABLIZER 26

7 PRODUCT PRICE CHART 27

8 PRICE CHARGED FOT THE ITEMS 29

9 REGISTERATION 30

10 NUMBER OF EMPLOYEES 31

11 SALARY WISE CLASSIFICATION 31

12 RECEIPT AND DISBURSEMENT STATEMENT 33

13 TRADING ACCOUNT 35

14 PROFIT AND LOSS ACCOUNT 35

15 BALANCE SHEET 36

COMPARATIVE 37

17 COMMON SIZE 40

18 CURRENT RATIO 42

19 QUICK RATIO 42

20 DEBT EQUITY RATIO 43

21 DEBT TO TOTAL ASSETS RATIO 43

22 PROPRREITORY RATIO 44

23 STUDY ON THE AGE GROUP OF THE RESPONDENTS 48

24 STUDY ON THE GENDER OF THE RESPONDENTS 49

25 STUDY ON CONSUMERS PREFERENCE 50

26 STUDY ON CONSUMER USAGE 51

STUDY ON CONSUMER SATISFACTION TOWARDS

27 52
QUALITY
28 STUDY ON CONSUMER SATISFACTION TOWARDS PRICE 53

29 STUDY ON CONSUMER PERCEPTION 54

30 STUDY ON CONSUMER USAGE 55

31 STUDY ON CONSUMER RATING 56

List of Charts

Page.
Sl. No Title
No

1 GENDER WISE CLASSIFICATION 31

2 STUDY ON THE AGE GROUP OF THE RESPONDENTS 48

3 STUDY ON THE GENDER OF THE RESPONDENTS 49

4 STUDY ON CONSUMERS PREFERENCE 50

5 STUDY ON CONSUMER USAGE 51

6 STUDY ON CONSUMER SATISFACTION TOWARDS QUALITY 52

7 STUDY ON CONSUMER SATISFACTION TOWARDS PRICE 53

 8 STUDY ON CONSUMER PERCEPTION 54

9 STUDY ON CONSUMER USAGE 55

10 STUDY ON CONSUMER RATING 56

ABSTRACT

The researcher has part of curriculum and has conducted a study to find out the financial performance of
the company. The data utilized for the study is secondary in nature. The required data is collected from
the budgeted formats, Flash results and six years annual dairy of the company. The data has been collected
for a period of two years of 2019 and 2020.

The duration of the study was from March 3-APRIL 4, the study was done for almost 30 days and all the
necessary information was provided by the company, At this COVID time the company gave the permission
to do the project with some restriction overall the project was successfully completed within a period of 30
days.

The study is mostly applying for all the age group as the products produced by AAVIN are used daily and
used by all the age groups, the age groups include infants, children, adults. The report provides clear
information regarding the total strength of the employee, it is being explained in detail the no of workers
involved in the study and the population included in the study are mostly customers from all the age groups
the workers and the employee

The study mainly consists of views from consumers regarding the price, quantity, quality of the product
produced by AAVIN and enables to ascertain the respondent level regarding the product. The study has
been conducted among consumers at different places in Nilgiris district where AAVIN milk is marketed.
The main aim of the study is that it provides the detail information about the products and its processes and
the report gives a overview of the company and the products and the consumers who uses the products
provided by the company. The study clearly provides the information regarding the consumer behavior
towards the dairy products provided by AAVIN

The present study is based on primary data. The primary data refer to the data that is being collected for the
first time. The primary data are the unpublished data. The unpublished data are obtained from the staff
member of the AAVIN dairy center. The limitation of the study is this that the information collected are
only from Nilgiris district other district are not included in it and every information provided are primary
data. Secondary data is not included A systematic way to solve research problem it may be understood as
a science of study how research done systematically this includes geographical area covered, period of
study, research design method of data collection, research instruments and sampling design. The main
reason for doing the project was to know the financial position of the company how the marketing is done
and how the goods are being produced and processed and to know the products expectation from the
consumers point of view. 8

CHAPTER 1

1.1 INTRODUCTION

Dairying has become an important secondary source of income for rural households engaged in milk
production and constitutes an important resource for employment and income generation. Dairying is
practiced in the villages as a cottage industry, meeting the household requirements which are scattered
throughout the country. The milk production is predominantly the domain of small and marginal farmers
and the landless who keep 1-2 milch animals generally as a part of a mixed farming system. While the
agriculture sector is witnessing a kind of stagnation or a decline in growth rate in areas where the green
revolution earlier brought a new dawn for human survival against hunger and malnutrition, the dairy sector
is showing a better promise during the post-independence period. The demand for dairy products is
increasing steadily with growing urbanization, improvement in income, education and living standards.

June 1 world milk day by FAO= food and agricultural organization. It gives to children to promote the
growth of their muscles, bones, teeth, and brain Pediatricians and Nutritionist agree that the balanced with
a proportion of the necessary carbohydrate, & proteins, moreover the high content of vitamin D in milk is
key component to milk bone structure, bone recovery and bone health. In addition, maintain the health of
the teeth.

Milk is nutrient rich food that provides a large number of nutrients relative to the calories consumed
milk is delicious as a beverage and can be used as a base for other drink such as hot chocolate. The
milk of domesticated animals is also an important food source for humans. Most milk consumed in
Western countries is from cows; other important sources include sheep, goats, water buffalo, and
camels. Milk is essentially an emulsion of fat and protein in water, along with dissolved sugar,
minerals (including calcium and phosphorus), and vitamins, particularly vitamin B complex.
Commercially processed cow's milk is commonly enriched with vitamins A and D. Many countries
require pasteurization to protect against naturally occurring and artificially introduced
microorganisms. Cooling further prevents spoilage (souring and curdling). Fat from whole milk
(about 3.5% fat content) can be removed in a separator to produce cream and leave low-fat milk
(1–2% fat) or skim milk (0.5% fat). Milk is usually homogenized, forced under high pressure through
small openings to distribute the fat evenly. It may also be condensed, evaporated, or dehydrated
for preservation and ease of transport. Other dairy products include butter, cheese, and yogurt

1.2 IMPORTANCE OF THE STUDY

• To know customer’s attitude and perception towards AAVIN products in Nilgiris district.
• To know the satisfaction level of customers based on taste and quality and other important
factors
• To know how the products produced by AAVIN is being processed. To know the financial
position of the company

1.3 OBJECTIVES OF THE STUDY

• To get extra knowledge about the dairy center.

• To know about the function and activities of AAVIN.
• To know about the financial highlight of the dairy center.
• To know about the process of dairy product in dairy center.
To know the sales achieved during the study period.

1.4 METHODOLOGY OF THE STUDY

Research Methodology is a systematic way to solve research problem it may be understood as a science
of study how research done systematically this includes geographical area covered, period of study.

• PERIOD OF STUDY
The duration of the study was from March 3-APRIL 4, the study was done for almost 30
days and all the necessary information was provided by the company, At this COVID
time the company gave the permission to do the project with some restriction overall the
project was successfully completed within a period of 30 days.

• RESEARCH DESIGN METHOD OF DATA COLLECTION

The data collected was purely primary data, the information collected was being collected
directly from the company the data collected are the data that are not being published the
unpublished data are obtained from the staff member of the AAVIN dairy center. And
all the staff members were very cooperative and they provided all the information that
 is necessary and the other data was collected from questionnaire. The questionnaire
consists of both open ended and closed ended questions and mostly contains multiple
choice questions and this played a important role in the collection of data.
10

1.5 POPULATION OF THE STUDY

The study is mostly applying for all the age group as the products produced by AAVIN are used daily and
used by all the age groups, the age groups include infants, children, adults. The report provides clear
information regarding the total strength of the employee, it is being explained in detail the no of workers
involved in the study and the population included in the study are mostly customers from all the age groups
the workers and the employee.

1.6 SCOPE OF THE STUDY

The study mainly consists of views from consumers regarding the price, quantity, quality of the product
produced by AAVIN and enables to ascertain the respondent level regarding the product. The study has
been conducted among consumers at different places in Nilgiris district where AAVIN milk is marketed.
The main aim of the study is that it provides the detail information about the products and its processes and
the report gives a overview of the company and the products and the consumers who uses the products
provided by the company. The study clearly provides the information regarding the consumer behavior
towards the dairy products provided by AAVIN.

1.7 LIMITATION STUDY

The present study is based on primary data. The primary data refer to the data that is being collected for
the first time. The primary data are the unpublished data. The unpublished data are obtained from the staff
member of the AAVIN dairy center. The limitation of the study is this that the information collected are
only from Nilgiris district other district are not included in it and every information provided are primary
data. Secondary data is not included.

1.8 CHAPTER SCHEME

• The first chapter consists of brief introduction of the study

• The second chapter consists of company profile
• The third chapter consists of data analysis and interpretation
• The fourth chapter consists of findings suggestion and conclusion
 11

LITERATURE REVIEW

Review of literature shows the previous studies carried out by the researchers in the field. The main purpose
of the review of literature is to indicate the problem that are already investigated and those that need further
Investigation. The researcher should refer academic journals, conference proceedings, document report,
books etc. depending on the nature of the problem. A critical reading of relevant literature becomes
indispensable not only locating the research problem, but also in analysing the procedure. In this process,
it should be remembered that one source will lead to another.

Nature Venkata Prasanta (2014) carried out a study on customer satisfaction rate towards AAVIN milk in
Coimbatore. The non-probability convenience sampling was adopted to draw a sample of 150 respondents.
The study focused on ascertaining consumer preference in purchase of AAVIN brand of milk and analysing
The perceived differences of various brands of milk on key attributes and also on identifying measures for
improving customer satisfaction. Purity, taste thickness, availability, price, service of agents and place of
purchase were the criteria used in the study It was found that AAVIN brand of milk was rated high for
purity, taste and thickness. Attributes like availability, price and service of agents were also rated good.

Riyaz Mohammed (2013) conducted a study on comparison of AAVIN, AROKYA and SAKTHI milk with
special reference top Coimbatore city with a sample size of 150 respondents drawn on convenience
sampling method. The study aimed to understand the consumer preference of branded milk, expectation
impact of packing of branded milk. The findings of the study revealed that the AAVIN brand of milk
preferred for its purity, quality and price. But the advertisement campaign, home delivery, non-availability
in retail outlets were the points of dissatisfaction when compared to milk brands of AROKYA and SAKTHI
Even though these brands claimed that package of milk in polyethylene packs were safe, it was still found
to be unhealthy.

BOOPATHI C (20012) the project entitled “An Overview of consumer behaviour of Aavin milk with
reference to Erode District” is carried out with an objective to determine the customer behaviour towards
Aavin milk products and to find out the customer mentality towards using the service. The research mainly
focuses on the factors like quality, consumer preference, price, service, attitudes and experience of
consumers. In this study, data are collected from the consumers through questionnaire (interview schedule).
100 samples are selected using convenience sampling. Using the interview schedule prepared, the
100consumers are interviewed personally and their opinion was collected. Secondary data was collected
from related websites, books. The collected data is analysed using simple percentage and chi-square. As
per the findings, suggestions are given to the company to take initiation to fulfil the consumer needs.
12
According to James coax (2010) in the economic journal, consumer economics traditionally operates on the
hypothesis that consumers seek the most utility, or satisfaction that they can buy consumer preference
involves the ranking of goods and services according to how much benefit they afford. The study of
consumer preference employs assumptions about consumer behaviour and how they decide preference. A
Consumer preference explains how a consumer ranks a collection of goods or services or prefers one
collection over another this definition assumes that consumers rank goods or services by the amount of
satisfaction, or utility, afforded. Consumer preference theory does not take the consumers income, good or
services price, or the consumer’s ability to purchase the product or service.

BOOPATHI.B (2009) India is the world’s largest dairy producer. Indian Dairy sector has grown
substantively over the years. Dairy products demand in India has increased dramatically in both rural and
urban sectors. However, as a larger population is migrating from rural areas to cities. Thus, creates greater
demand for dairy products. Tamil Nadu state is the one of the ten largest milk producing states in India. In
the state, major milk contributor is AAVIN, a Tamil Nadu-based milk producer's union, procures milk,
processes it and sells milk and milk products to consumers. This paper analyses consumer perception over
the AAVIN special reference to the Pollachi Taluk of Tamil Nadu State. The aim of the study is revealing
consumer perception over AAVIN milk products based on their age, educational qualification and monthly
income of the consumers’ family. It also depicts level of satisfaction about the product using chi-square
test.

CHAPTER 11

PROFILE OF THE COMPANY

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The Dairy Development Department was established in Tamil Nadu in the year 1958 to oversee and regulate
milk production and commercial distribution in the state. The Dairy Development Department took over
control of the milk cooperatives. It was replaced by the Tamil Nadu Cooperative Milk Producers Federation
Limited in the year 1981. On 1 February 1981, the commercial activities of the cooperative were handed
over to Tamil Nadu Co-operative Milk Producers' Federation Limited which sold milk and milk products
under the trademark "AAVIN". Tamil Nadu is one of the leading states in India in milk production with
about 14.5 million liters per day.

AAVIN is the trademark of Tamil Nadu Co-operative Milk Producers' Federation Limited, a Tamil
Nadubased milk producer's union. AAVIN procures milk, processes it and sells milk and milk products to
consumers. The company produces a wide range of products, including milk, butter, ice cream, ghee, Tea,
Coffee among other goods. The State of Tamil Nadu with large rural areas is working towards the economic
development of poor farmers and Dairy Development Department is working towards the objective of
achieving “Second. White Revolution” in Tamil Nadu State thereby to increase the milk production of
Tamil Nadu, which is a nutritionally rich food to meet the daily needs of all general public irrespective of
age and religion.

Tamil Nadu is one of the first ten States in milk production in the Nation with daily milk production of 223
lakh liter. Out of this, around 38 Lakh liter per day (LLPD) is retained for household consumption and
nearly 32% is i.e., around 71 LLPD is being procured by the organized sector such as Co-operatives and
private dairies. The share of co-operatives in overall milk production in the State is around 16% i.e., 37
LLPD. Tamil Nadu has moved ahead to third place from the earlier fourth place among the State
Cooperatives in milk procurement in the nation.

In Tamil Nadu, the “Anand” pattern of milk co-operatives pioneered by the “Milk Man of India”, Dr.
Varghese Kurien, is being implemented successfully with the formation of the 3 tier Co-operative societies
at different levels and the Co-operative milk is being marketed under the brand name “AAVIN”.

To ensure clean milk production and supply of hygienic and safe milk and milk products to the consumers,
AAVIN is strictly implementing various modern and scientific measures at all stages starting from village
level procurement, milk processing, manufacturing of milk products and value-added by-products and
finally supply to the 3 consumers. AAVIN is also keenly adhering to food safety standards while meeting
the demand for clean milk.

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In Tamil Nadu, there are 9,988 village-level primary Milk Producers’ Co-operative Societies (MPCS)
having 20.21 lakh members in the Co-operative ambit. Milk producers’ Co-operative societies work all 365
days without any holiday and are procuring milk both in the morning and evening from the milk pouring
members and are having direct contact with the members daily which enables the societies to resolve the
grievances of the members early.

2.2 ESTABLISHMENT

AAVIN was established in 1972. In 1972, the company set up first dairy plant in Chennai. In 1981, the
company developed ‘Anand’ pattern by Dr. Kurien. In 2017-2018, the per capita availability of milk in
Tamil Nadu has increased from 169 gm/day in 1993-94 to 268 gm/day in 2017-2018, due to increase in
Milk production, the rise in per capita income, changing life style, food habits and export opportunities
contributed to the rise in the demand for milk and milk products. The company expand the organization in
all over the world and providing best quality of milk products with customer satisfaction.

2.3 VISION

AAVIN vision is as follows:

• To march forward with a missionary zeal this will make AAVIN a trailblazer of exemplary
performance and achievements beckoning other Milk Federations in the country in pursuit
of total emulation of its good deeds.
 • To ensure prosperity of the rural milk producers who are ultimate owners of the Federation.
• To promote producer oriented viable co-operative society to impart an impetus to the rural
income, dairy productivity and rural employment.
• To bridge the gap between price of milk procurement and sales price.
• To develop business acumen in marketing and trading disciplines so as to serve consumers
with quality milk, give a fillip to the income of milk producers.
To compete with MNCs and Private Dairies with better quality of milk and milk products and in the process
sustain invincibility of co-operatives

2.4Mission

“Heralding economic, social and cultural prosperity in the lives of our milk producer members by promoting

vibrant, self-sustaining and holistic co-operative dairy development in Tamil Nadu State”

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PRODUCT DISCRIPTION

PRODUCTS IN AAVIN

There are many products produced by AAVIN they include Milk, Butter, Peda, Khoa, Ice-cream, Ghee,
Flavored Milk etc. AAVIN is mostly meant for Milk as most of the profit is earned through milk and
consumers love the product that is being provided to them the mostly commonly used products are Milk
Ghee and Butter.

PRODUCTION OF MILK
COLLECTION OF MILK

The milk is collected from many villages. The milkers give their milk through dairy situated in their village.
Therefore, both societies and milk givers can earn money with some profit. The collection of milk which is
directly collected from the milk giver is known as the “Raw Milk”. The milk can be collected from the
milkers during morning or otherwise at evening.

16

DAIRY PROCESSING

Processing facility: the milk received at the chilling centres are brought to the dairy and along with the milk
received at the dairy, milk is processed for keeping the quality. Types of milk such as standardized milk,
high fat, high protein milk, are being prepared to the requirements of the consumers; the surplus fat is
converted into ghee. The whole milk surplus is dispatched to metro dairies and feeder balancing dairies.
 COLLECTION MILK FROM THE PUBLIC

PROCESS OF MILK

processing the milk is of two types as described. The process of pasteurization is carried out. Then
transported milk is steamed at about 71OC and then chilling at 4OC to kill harmful bacteria. Then the
bacteria free milk is stored in silo (Large Milk Storage Tank) at 6OC. The milk is then packed in ¼, ½,
1liter pockets and then stored of about 7OC to 8OC.Finally these pocket milks are distributed to various
market places for sale.

Homogenization

firstly, the homogenization is a process that reduces the size of fat globules by forcing pressurized hot milk
through small whole causing turbulence, they break up the larger fact globules so that they remain
suspended rather than separating in a cream layer at the top. Homogenization effects the development of
atherosclerosis, coronary, heart disease milk allergy, diabetes.

17

SURPLUS FAT BEING CONVERYED INTO GHEE

 PROCESSING HALL IN NILGIRIS

PASTEURIZATION

It is a process by which the disease-causing bacteria in the milk are destroyed without losing its nutritive
values. The milk is boiled at 600 c for thirty minutes and cooled quickly. Whatever the method is used for
preservations of food, cleanliness and general sanitary conditions are imported.

Pasteurization makes sure milk is safe to drink (by killing any bacteria) and also helps to prolong its shelf
life. The process of pasteurization involves heating milk to 71.7°C for at least 15 seconds (and no more
than 25 seconds). ... Once the milk has been heated, it is then cooled very quickly to less than 3°C.

18

TO ACCESS THE QUALITY OF MILK

1. Reduction Test
It checks whether the bacteria is present or not in the milk. If the bacteria is present it will kill
the bacteria in that milk.
2. MBR Test (methylene blue dye)
• Lactase test
It is used to determine the lactic acid concentration in milk and milk product since its value
has to be kept under fixed law limits.
• Chloride test
It is used to measure the quality of salt in different dairy products.
• Ammonia Text
It is used to measures the ammonia concentration and it determines the good quality of milk.
PERCENTAGE OF FAT IN MILK

The fat content in the milk is shown in the following table

TABLE NO 1
Milk Fat percentage SNF percentage

Toned milk 3.5 8.5

Standardized milk 4.0 8.5

Double toned milk 1.5 9.0

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MILK PEDA

Milk Peda is a semi solid obtained from milk by evaporating it in open pans. This is an important milk
product it is estimated that 5-7% of the total milk production in the country is coated to milk Peda or khoa.
About 3,00,000 Tons of Khoa are produced annually. It together keeps the quality of milk and makes it
less sustainable to bacterial growth.

Khoa is a compact mass of very small uniformly sized grantee. It is white in color (slightly brown if
caramelization has taken place during heating) Has a sweet weather and 4-5days in cold weather. The
addition of sugar prolongs its life to 3-4 months. The addition of sugar prolongs its life to 3-4 months. The
composition of Khoa depends on the nature of milk used. Buffalo milk contains more fat (46%) than that
of cow (35%)

PREPARATION

In the preparation of milk Peda. Milk is boiled in a big shadow, round bottomed iron pan. Over a steady
fire or with the help of steam. T the steam helps in easy evaporation of water in milk. To prevent scorching,
milk is continuously stirred and in a circular motion with a scrape When milk becomes viscous the rate of
stirring is increased to maintain to a uniform consistency. The pan is removed from stream when it reaches
the considerable consistency. After cooling this becomes solid. The yield is above 20% of the weight of
milk is used. After the preparation product is transferred to tray for cooling after that it is laid according to
weight. There it is packed.

20
PRODUCT PROFILE OF MILK PEDA TABEL NO 2
Nutritional value 100g
Energy 414kcal
Carbohydrate 28.0g
Fat 26.0g
Protein 14.0g
Added sugar 10.0g
Net content 40g
MRP 12 Rs

PREPARATION OF MILK PEDA

->High fat milk (4.0 fat and 8.0 SNF for 120 liter)
->Poured to boiling var
->Sugar is added
->Milk is allowed to evaporate
 ->It is allowed to evaporate for 2 ½ hours
->It is allowed to cool
->Cut
->packing
FLAVOURED MILK

Flavored milk is a drink and also it is a milk product the flavored milk contains added sugar. Flavors and
color there are different milk produced they are Chocolate, Strawberry, Pistachio, Mango, Cardamon.
Milk is the common component of the flavored milk. The different is only in the added flavors and
essence For 30 liter of milk, 30 ml of essence is added Along with the essence and color sugar is also
added. The essence is colorless with pistachio flavored milk. The color added is pistachio powder, apple
green powder is added and boiled with water. For the strawberry is added color is aspirin red. Cardamon
is colorless and then the only thin added is essence.
21
PREPARATION OF FLAVOURED MILK

->Milk is taken
->Heated at 85 degree for ½ min
->Homogenized
->Cooked
->Add sugar color and essence
->Bottled
->Sterilized
->Labelled
->Marketed

PROCESSING

Milk is first poured into a tank and then heated to 85 degree. It is heated to make the chill milk warm. It is
then homogenized to make the supply of cream uniformly. And then it is cooled and 10% of sugar color
and essence is added. It is then bottled then sterilized at 120 degree Celsius for 20 min. It is then labelled
and then marketed. At the time of adding sugar different essence and color are added.

PRODUCT PROFILE OF FLAVORED MILK TABLE NO 3

Nutritional information value / 100ml

Energy 48kcal
Fat 1.5g
Protein 3.4g
Carbohydrate 4.9g
Added sugar 10.0g
Minerals 127mg
Net Quantity 200ml
MRP 12 Rs

22
 PANEER

Paneer is a milk product. Paneer is made by coagulating the milk, critically by using citric acid. Citric acid
helps in coagulating the milk, the milk contains 87% of water and 13% of total solids, In this paneer, the
total solids is taken and other 87% of water is drained off. The paneer contains 87% of milk added sugar.

PROCESSING
The considerable amount of milk is pound into the tank for preparation of paneer. Then the citric acid is
added to the milk for one liter of one gram od citric acid is added; The whey water and total solids gets
separated the way water drained off. The raw milk of 28.29% fat is used for making the paneer. This raw
milk is then filtered and then it is heated 10-85 degree Celsius. To this heated milk the citric acid added in
fixed amount FPT 100 liters of milk, 200gm of citric acid added. Boil this mixture and the heat supplied.
After boiling the mixture turn off the heat. Shake or this the mixture is well, the water is drained off and
the mixture is dipped in chilled water, then it is allowed to settle, then it is cut to appropriate weights and
packed.

PREPARATION OF PANEER

 Raw milk at 28-29% fat

 Filter the milk
 Collected in the tank for preparation
 Heated to 85 degree
 Add citric acid (100 litre milk, 200gm citric acid)
 Boil the mixture
 Stir well
 Remove the water
 Allow the solids to settle
 Cut
 Packing
23
 CURD

Curd is prepared by coagulating the milk for the preparation of curd. The milk is artificially coagulated by
adding lactic acid. The milk of fat 1.5 and SNF 9.0 is used for the preparation of curd. This milk is first
heated to 85 degree Celsius and then it is cooled to 32-35 degree Celsius and then culture is added. As soon
as the culture is added to the curd is packed in 200ml and then it is kept at 35 degree Celsius for 6hrs. on
this keeping time the milk changes to curd. And after this processing the packets are collected and then
cooled in cold storage. It is cold stored in order to avoid the development of lactic acid producing bacteria.
It is then marketed.

PREPARATION OF CURD
 Milk of fat 1.5 and SNF 90
 Heated to 85 degree Celsius
 Cooled to 30-35 degree Celsius
 Culture is added
 Packed
 Stored t 35 degree Celsius for 6hrs
 Cold storage
 Marketing

24
 GHEE

This is the clarified butter fat obtained from cow or buffalo milk. It is produced by heating of butter at
120degree Celsius heat induce changes in milk protein or lactose during the clarification process and gives
a pleasant cooked flavor to ghee. The ghee produced from cow milk has a distinct golden yellow color due
to the presence of carotene the ghee produced from buffalo milk has white color with greenish tinge attribute
to bilirubin and biliverdin. Milk is perishable and because of difficult is of marketing, it is converted into a
more stable product ghee. Because of its keeping qualities, it is being made from early times. The ghee
contains 99% of fat. The ghee produced here is mainly purchased by the cortical Ayurveda vinyasa. Due to
in its medical properties.

PRODUCTION

The butter is transferred to a big tank where it is heated to 110 degree Celsius. The transferred butter is
heated to 110 degree by using the steam in the tank. It is boiled on first day and at that time the ghee and
butter milk get separated. Next day morning the ghee taken and butter milk of whey is drained off.

PREPARATION OF GHEE

 Transferring of butter to tank

 Heating at 110 degree Celsius for 2 1/2
 Removing of better milk
 Collection of ghee
 Packing
 Distribution

25
The butter is transferred to a big tank where it is heated to 110 degree Celsius. The transferred butter is
heated to 110 degree by using the steam in the tank. It is boiled on first day and at that time the ghee and
butter milk get separated. Next day morning the ghee taken and butter milk of whey is drained off.

CHEMICAL COMPOSITION OF GHEE

TABLE NO 4

CONSTITUENTS COW BUFFALO

Fat 99-99.5 99-99.5

Moister 20.5 20.5

Carotene 3.2-7.4 -

Vitamin A 19-34 17-38

Cholesterol 302-363 209-312

Tocopherol 20-48 18-39

Free fatty acid 2.8 2.8

26
 ICE CREAM

Ice cream is a very popular product in western countries. The demand for ice cream has recently increased
particularly in town and cities. Ice cream is a frozen dairy product. It contains a variety of dairy ingredient.
These includes whole milk, skim milk, cream, butter, butter oil, condensed milk producer and dried milk
products. Milk fat and milk solids not fat constitute about 60% of the total rich flavor, improved body and
texture. In addition to dairy products, ice cream contains sugar, stabilizer, emulsifier, flavor material, water
and air.

COMPAITION OF ICE CREAM

TABLE NO .5
Toned milk fat 3.0%, SNF 8.5% 100kg
Sugar 24kg
Skimmed milk powder 8kg
Cream fat 70% 17kg
Stabilizer 720kg
Milk 100 to 3=103kg SNF 8.755
Skim milk powder 8kg 96% SNF 7.680
Cream 17kg 70% fat SNF 30 % SNF 0.510
Sugar SNF 0.730
Stabilizer yield 150kg fat 4.99 SNF 17.663

STABILIZER
TABLE NO 6
Sodium alginate 0.10%
Guar gum 0.05%
CMC 0.20%
Gems 0.25%
 2.6 MARKETING AND SALES OF THE COMPANY
PRODUCT PRICE CHART
TABLE NO 7
S1. NO NAME OF BASIC CGST SGST RETAILER M.R.P
THE PRICE PRICE
PRODUCT
1 GHEE-12%
1 Litre 480.36 28.82 28.82 538.00 580.00
1Liter, Jar 495.54 29.73 29.73 555.00 600.00
500 ml Jar 250.00 15.00 15.00 280.00 310.00

200 ml Jar 116.07 6.96 6.96 130.00 140.00

100 ml Jar 66.07 3.96 3.96 74.00 80.00
5 lit Ghee 2433.04 145.98 145.98 2725.00 2950.00
Jar
2 COOKING
BUTTER-
12%
500 gms 223.21 13.30 13.30 350.00 270.00
100 gms 49.11 2.95 2.95 55.00 60.00
3 KHOA-5%
1 kg. 390.48 9.76 9.76 410.00 450.00
40 gms 17.14 0.43 0.43 18.00 20.00
100gms 42.86 1.07 1.07 45.00 50.00
Without sugar 476.19 11.90 11.90 500.00 550.00
1
4 PANNEER5%

Panneer 295.24 7.38 7.38 310.00 340.00

1kg
200 gms 71.43 1.39 1.39 75.00 85.00
5 CHEESE12%

Cheddar 1 366.07 21.96 21.96 410.00 450.00

kg
Processed 200 116.07 6.96 6.96 130.00 140.00
gms
6 BHADAM
MIX-18%
200 gms 67.80 6.10 6.10 80.00 90.00
7 CURD
200 gms 13.50 0.00 0.00 13.50 15.00
500 gms 31.50 0.00 0.00 31.50 35.00
Butter milk 9.00 0.00 0.00 9.00 10.00
200ml
 8 ICE
CREAM-
18%
100ml cup 10.17 0.92 0.92 12.00 15.00
50 ml cup 5.93 0.53 0.53 7.00 8.00
Choco bar 15.75 1.37 1.37 18.00 20.00
65ml
Kulfi 70 ml 19.66 1.77 1.77 23.20 25.00
Cone 60 ml 22.29 2.01 2.01 26.30 28.00
9 ROSE
MILK-5%
150 ml 8.57 0.21 0.21 9.00 10.00
10 MILK
SHAKE-5%
200 ml 19.52 0.49 0.49 20.50 32.00

After fixing the price now the product gets ready to be sold, loading of the goods takes place at
night from 10pm-3am and Gate pass is provided to all the agent. All the agent must deposit a fixed amount
of Rs1010, 1000 for deposit and 10 for trade deposit, once the payment is done, they get a discount of
10% for the item they purchase. Gate Pass is provided for all the agent for the supply of goods and if any
item is being returned back or spoiled it will be mentioned in the receipt. Gate Pass is an important element
used for marketing and for sales.

GATE PASS
AAVIN that is situated in Nilgiris district supply their items to 10 different places and they are
as follows: Manjoor Manjakombai Kotagiri Gudalore Coonoor Embanadu Thoonari Valathotam Ooty the
left-over items are sold to AAVIN parlor situated in Nilgiris.
29
 AAVIN PARLOR

AAVIN parlor is a parlor where all the products produced are stored in order to sell the goods to the
consumers. Parlor are available in every town in order to increase sales, AAVIN parlor consists of all kin
of products and it is also considered to be the chilling place. AAVIN parlor not only attracts kid but also
the adults as the products produced by them are tastier and special

2.7 PROCESSES OF PAYMENT

PRICE CHARGED FOR THE ITEMS

TABLE NO 8

AGENT PUBLIC

DTM 47 48

SPECIAL MILK 51 52

PREMIUM 49 50

FCM 54 56

STEP 1:

Payment for the product is done to the cashier and the first processes is to pay the cash and receive a receipt
called as the sub cash receipt by the cashier. Price charged against the product is one rupee lesser for the
agent as compared to the public.
30
STEP 2:

Once the payment is done and sub cash receipt is received it should be entered in the register of the
company and the account should be tallied.
TABLE NO 9

S/NO R.NO NAME AMOUNT Rs 47 Rs 49 Rs 51 Rs 54

1 19262 Katti paladi 10943 - 47 160

2 19264 Kabisholai 435 - 3 6

3 19265 Fehhanadu 6449 - 125 6

4 19266 Kambaty 540 - 10

5 19267 Manjoor 4322 - 5 751/2

6 19268 Mariagudi 71214 - 788 611

7 19269 Kotagiri 20178 - 4 268 127

8 19270 Mariacombai 4297 - 37 46

9 19271 Thuncri 1577 50 81/2 211/2

10 19273 Sholur 5591 - 5 52 52

11 19274 Gundalore 27301 50 1391/2 379

12 19275 Manjoor 1470 - 30

13 19276 Satari 42548 50 1/2 270 5421/2

14 19277 2 Marketing 12673 - 52 1871/2

15 19279 Fem Melville 35487 50 5 4821/2 215

16 19280 3 Marketing 1080 - 20

17 19281 Kotagiri 99155 50 321/2 734 20 1123

18 19282 Town 10894 - 46 160

19 19283 Kateri 41296 - 2 763

397452 50 52 30821/2 20 4499

STEP:3- Once registered the next processes is billing.

 2.8 NUMBER OF EMPLOYEES

As per the study there are one general manager followed by one assistant general manager
and then there are 4 cashiers working in the company, followed by seventy-two regular
employees and finally there are four casual labors.
TABLE NO 10

POSITION NO. OF MEMBERS

General Manager 1
Assistant General Manager 1
Cashier 4
Regular Employees 72
Casual Labours 4

GENDER WISE CLASSIFICATION

FIG 1

Gender

7%

93%

MALE FEMALE

SALARY WISE CLASSIFICATION

The following are the monthly salary of the employees:

TABLE NO 11

POSITION SALARY
General Manager 1,73,435
Assistant General Manager 1,46,289
Cashiers 96,293
Permanent Staffs Above 40,000
Temporary Staffs Above 20,000
 CHAPTER 111

ANNALYSIS AND INTERPRETATION

1) RECEIPTS AND DISBURSEMENTS STATEMENT

Cash must be protected at both receipt and disbursement. Cash receipts are money received from
consumers for the sale of goods or services. Cash disbursements are money paid out to individuals for the
purchase of items that are needed and used by a company.

2) TRADING ACCOUNT

A trading account can be any investment account containing securities, cash or other holdings. ... The assets
held in a trading account are separated from others that may be part of a long-term buy and hold strategy.
Traders use trading accounts to hold financial assets such as stocks, bonds, foreign exchange, and other
investment vehicles. Typically, a trading account allows the buying and selling of securities, otherwise
known as day trading

3) PROFIT AND LOSS ACCOUNT

The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and
expenses incurred during a specified period, usually a fiscal quarter or year. ... These records provide
information about a company's ability or inability to generate profit by increasing revenue, reducing costs,
or both.

4) BALANCE SHEET

A balance sheet is a financial statement that reports a company's assets, liabilities and shareholders' equity.
The balance sheet is one of the three (income statement and statement of cash flows being the other two)
core financial statements used to evaluate a business.

33
 FINANCIAL POSITION OF AAVIN FOR THE PERIOD 01.04.2019 TO 31.03.2020

3,1 RECEIPTS AND DISBURSEMENTS STATEMENT OF THE NILGIRIS DISTRICT

COOPERATIVE MILK PRODUCERS’ UNION LIMITED, UDHAGAMANDALAM AS ON
01.04.2019 TO 31.03.2020

TABLE NO 12

SI. RECEIPTS FAM 2019-2020 2018-19

NO. P.NO AMOUNT AMOUNT
1 SHARE CAPITAL 0.00 0.00

2 CASH AT BANKS 403602754.45 383041946.24

3 DEPOSITS 1356760.00 23401700.00

4 OTHER INVESTMENTS 0.00 0.00

5 SALES 411062789.75 346267134

6 TRADE INCOME 8148199.00 1230987.50

7 MISCELLANEOUS INCOME 4850092.46 11750098.22

8 SUBSIDY 2144000.00 1816368

9 SUNDRY CREDITORS 308926893.87 273076834.24

10 SUNDRY DEBTORS 271988145.74 220927453.57

11 TAX COLLECTED 12882304.66 9010175.11

12 RESERVE FOR DEFICIT 538957.25

STOCK
13 DEFICIT STOCK 160868.12

14 ASSET TRANSFER 88890.00

15 INTEREST ON RESERVE 68197.00

FUND
16 INTEREST ON WAIVER 11875232.00

TOTAL 1424961939.93 1283254871.44

OPENING BALANCE 1313340.50 564767.20

GRAND TOTAL 1426275280.43 1283819638.64

34
SI. DISBURSMENTS FAM 2019-2020 2018-2019
NO. P.NO AMOUNT AMOUNT

1 ASSETS 1096736.00 910157.00

2 CASH AT BANK 405095611.17 378085034.16

3 DEPOSISTS 366766.16 451976.00

4 OTHER INVESTMENTS 163390.00 123820.00

5 PURCHASES 303150531.84 246437460.71

6 TRADE CHARGES 27396836.75 32703201.12

7 ESTT. & CONTINGENT 89547644.48 75821607.33

CHARGES
8 SUBSIDY 11038979.66 1321491.00

9 SUNDRY CREDITORS 277813807.15 302447099.62

10 SUNDRY DEBTORS 298838306.72 222100846.95

11 TAX PAID 10359307.00 8701147.00

12 STOCK DEFICIT 538957.25

13 INTEREST PAID 0.00 11876262.00

14 BONUS TO STAFF 788928.00 988238.00

TOTAL 1425656844.93 1282506298.14

CLOSING BALANCE 618435.50 1313340.50

GRAND TOTAL 1426275280.43 1283819638.64

 3.2 MEMORANDUM FOR THE YEAR ENDING 31-03-2020
TRADING ACCOUNT

TABLE NO 13

PARTICULARS NOTE AMOUNT PARTICULARS NOTE AMOUNT

NO. NO.

Opening Stock 1 4430775.17 Sales 5 411062789.75

Purchase 2 303150531.84 Closing Stock 6 57+64966.38
Trade charges 3 27396836.75 Trade Income Received 7 8148199.00
paid & due & Due

Taxes Paid & 10775370.22 Taxes Collected & Due 8 12882304.66

Due

Gross Profit 4 92104745.81

Transferred to
P&L Account

GRAND 437858259.79 GRAND TOTAL 437858259.79

TOTAL

3.3 MEMORANDUM FOR THE YEAR ENDING 31-03-2020

PROFIT AND LOSS ACCOUNT

TABLE NO 14

PARTICULARS NOTE AMOUNT PARTICULARS NOTE AMOUNT

NO. NO.
Establishment 9 87104991.47 Gross Profit from Trading 92104745.81
Charges Paid & Account
Due
Bonus to staff 10 788928.00
Paid & payable Miscellaneous Income 13 4850092.46
Received & Due
Interest 11 5554463.00

Reserve created 12 3773179.91 Reserved released 14 863386.65

Net Profit 596662.54

GRAND 97818224.92 GRAND TOTAL 97818224.92

TOTAL
3.4 BALANCE SHEET OF THE NILGIRIS DISTRICT COOPERATIVE MILK PRODUCERS
UNION LIMITED, UDHAGAMANDALAM FOR THE YEAR ENDED 31-03-2020

TABLE NO 15

SI. FAM AS ON AS
NO. LIABILITIES P.NO. 31-03-2020 ON
31-03-2019
1 DEPOSIT AND BORROWINGS A)
SHARE CAPITAL: -1 GOVT
21096500.00 21096500.00

2 MPCS 2795800.00 2795800.00

B) LOANS & DEPOSITS 49840107.67 48850113.83

C) GRANTS & SUBSIDIES 91080429.10 99975408.76

2 PAYABLES
A) UNDISBURSED BONUS 189995.00 189995.00

B) TAXES 1152370.22 736307.00

C) INTEREST 68486635.00 62932172.00

D) FMD A/c 945000.00 945000.00

E) SUBSCRIPTION 62890.00 57890.00

TO.DIST.COOP.UNION

F) BONUS 693595.00 1542.49.00

3 ADJUSTMENT HEADS
SUNDRY CREDITORS 115138453.29 84025366.57

4 RESERVES

A) NON-STATUTORY 71191393.58 68281600.32

RESERVES

B) RESERVE FOR OD 121259.48 121259.48

INTEREST

C) CAPITAL RESERVE 4067603.33 4067603.33

5 PROFIT APPROPRIATION 806653.18 806653.18

GRAND TOTAL 427668684.85 396423718.47

 SI ASSETS FAM AS ON AS ON
NO. P.NO. 31-03-2020 31-03-2019
6 CASH
A) ON HAND 618435.50 1313340.50

B) STAMP ON HAND 22.0 1378.00

C) AT BANKS 23043793.91 21550937.19

7 SUNDRY DEBTORS 95182790.96 68332629.98

8 STOCKS
A) CLOSING STOCK 13228717.11 10292489.42

B) DAMAGES AND 384706.77 384706.77

CONDEMNED STOCK

C) DEFICIT STOCK 1158525.50 1158525.50

9 RECEIVABLES

A) INTEREST 340500.54 340500.54

B) MISCELLANEOUS 55.00 55.00

INCOME

C) PREPAID EXPENSES 78662.46 80146.93

10 INVESTMENTS
A) OTHER INVESTMENTS 3679529.39 3516139.39

B) LOAN TO MPCS 378675.21 378675.21

11 FIXED ASSETS
A) LAND & BUILDINGS 29856699.83 29856699.83

B) PLANTS AND 52374627.11 52374627.11

MACHINERY

OTHER ASSETS 24694521.66 23597785.66

CUMULATIVE LOSS 182648421.90 183245084.44

 3.5 COMPARATIVE BALANCE SHEET OF THE NILGIRIS DISTRICT COOPERATIVE
MILK PRODUCERS’ UNION LIMITED, UDHAGAMANDALAM FOR THE YEAR ENDED
2019 AND 2020

TABLE NO 16
ABSOLUTE %
SI. LIABILITIES FAM AS ON AS ON CHANGE INCREA
NO. P.NO. 31-03-2020 31-03-2019 INCREASE/ SE/
DECREASE DECRE
ASE
1 DEPOSIT AND _
BORROWINGS _
A) SHARE CAPITAL: 1 21096500.00 21096500.00
GOVT
2795800.00 2795800.00 _ _
MPCS- 2
B) LOANS & DEPOSITS 49840107.67 48850113.83 989993.84 0.20

C) GRANTS & 91080429.10 99975408.76 (8894979.66) 8.89

SUBSIDIES
2 PAYABLES _ _
A) UNDISBURSED 189995.00 189995.00
BONUS
B) TAXES 1152370.22 736307.00 416063.22 56.50
C) INTEREST 68486635.00 62932172.00 5554463 8.82
D) FMD A/c 945000.00 945000.00 _ _
E) SUBSCRIPTION 62890.00 57890.00 5000 8.63
TO.DIST.COOP.UNION

F) BONUS 693595.00 1542049.00 (848454) 55.02

3 ADJUSTMENT HEADS 2.66
SUNDRY CREDITORS 115138453.29 84025366.57 2235644

4 RESERVES
A) NON-STATUTORY 71191393.58 68281600.32 2909793.26 4.26
RESERVES

B) RESERVE FOR OD 121259.48 121259.48 _ _

INTEREST

C) CAPITAL RESERVE 4067603.33 4067603.33 _ _

5 PROFIT 806653.18 806653.18 _ _

APPROPRIATION
 GRAND TOTAL 427668684.85 396423718.47 31244966.38 7.88
ABSOLUTE %
SI ASSETS FAM AS ON AS ON CHANGE INCREASE/
NO. P.NO 31-03-2020 31-03-2019 INCREASE/ DECREASE
. DECREASE
6 CASH
A) ON HAND 618435.50 1313340.50 (694905) 52.91

B) STAMP ON HAND 22.0 1378.00 (1356) 98.40

C) AT BANKS 23043793.91 21550937.19 1492856.72 6.92

7 SUNDRY DEBTORS 95182790.96 68332629.98 26850160.98 39.29

8 STOCKS
A) CLOSING 13228717.11 10292489.42 2936227.69 28.52
STOCK
B) DAMAGES AND 384706.77 384706.77 _ _
CONDEMNED
STOCK
C) DEFICIT 1158525.50 1158525.50 _ _
STOCK
9 RECEIVABLES

A) INTEREST 340500.54 340500.54 _ _

B) 55.00 55.00 _ _
MISCELLANEOUS
INCOME
C) PREPAID 78662.46 80146.93 (1484.47) 1.85
EXPENSES
10 INVESTMENTS
A) OTHER 3679529.39 3516139.39 163390 4.64
INVESTMENTS
B) LOAN TO MPCS 378675.21 378675.21 _ _

11 FIXED ASSETS _ _
A) LAND & 29856699.83 29856699.83
BUILDINGS
B) PLANTS AND 52374627.11 52374627.11 _ _
MACHINERY

OTHER ASSETS 24694521.66 23597785.66 1096736 4.64

CUMULATIVE 182648421.90 183245084.44 (596662.54) 0.32
LOSS
GRAND TOTAL 427668684.85 396423718.47 31244966.38 7.88
3.6 COMMON SIZE BALANCE SHEET OF THE NILGIRIS DISTRICT COOPERATIVE MILK
PRODUCERS UNION LIMITED, UDHAGAMANDALAM FOR THE YEAR ENDED 2019 AND
2020

TABLE NO 17
SI. FAM AS ON 31- AS ON 31-
NO. LIABILITIES P.NO. 03-2020 03-2019 2020 % 2019
%
1 DEPOSIT AND
BORROWINGS
A)SHARE CAPITAL:-1 21096500.00 21096500.00 4.93 5.32
GOVT

2 2795800.00 2795800.00 0.65 0.70

MPCS
B) LOANS & DEPOSITS 49840107.67 48850113.83 11.65 12.32
C) GRANTS & 91080429.10 99975408.76 21.29 25.21
SUBSIDIES
2 PAYABLES 0.044 0.047
A) UNDISBURSED 189995.00 189995.00
BONUS
B) TAXES 1152370.22 736307.00 0.26 0.19
C) INTEREST 68486635.00 62932172.00 16.01 15.87
D) FMD A/c 945000.00 945000.00 0.22 0.23
E) SUBSCRIPTION 62890.00 57890.00 0.014 0.014
TO.DIST.COOP.UNION

F) BONUS 693595.00 154249.00 1.62

0.038
3 ADJUSTMENT HEADS
SUNDRY CREDITORS 115138453.29 84025366.57 26.92 21.19

4 RESERVES
A) NON-STATUTORY 71191393.58 68281600.32 16.64 17.22
RESERVES

B) RESERVE FOR OD 121259.48 121259.48 0.02 0.03

INTEREST

C) CAPITAL RESERVE 4067603.33 4067603.33 0.95 1.02

5 PROFIT 806653.18 806653.18 0.18 0.20
APPROPRIATION

GRAND TOTAL 427668684.85 396423718.47 100 100

 SI ASSETS FAM AS ON AS ON 2020 % 2019
NO. P.NO. 31-03-2020 31-03-2019 %
6 CASH
A) ON HAND 618435.50 1313340.50 0.14 0.33

B) STAMP ON HAND 22.0 1378.00 0 0

C) AT BANKS 23043793.91 21550937.19 5.38 5.43

7 SUNDRY DEBTORS 95182790.96 68332629.98 22.25 17.23

8 STOCKS
A) CLOSING STOCK 13228717.11 10292489.42 3.09 2.59

B) DAMAGES AND 384706.77 384706.77 0.08 0.09

CONDEMNED
STOCK
C) DEFICIT STOCK 1158525.50 1158525.50 0.27 0.29

9 RECEIVABLES

A) INTEREST 340500.54 340500.54 0.07 0.08

B) 55.00 55.00 0 0
MISCELLANEOUS
INCOME
C) PREPAID 78662.46 80146.93 0.018 0.020
EXPENSES
10 INVESTMENTS
A) OTHER 3679529.39 3516139.39 0.86 0.88
INVESTMENTS
B) LOAN TO MPCS 378675.21 378675.21 0.08 0.09

11 FIXED ASSETS
A) LAND & 29856699.83 29856699.83 6.98 7.53
BUILDINGS
B) PLANTS AND 52374627.11 52374627.11 12.24 13.21
MACHINERY

OTHER ASSETS 24694521.66 23597785.66 5.77 5.95

CUMULATIVE LOSS 182648421.90 183245084.44 42.70 46.22

GRAND TOTAL 427668684.85 396423718.47 100 100

 3.7 RATIO ANNALYSIS
FOR THE YEAR 2019&2020
CURRENT RATIO

The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due within one year. It tells investors and analysts how a company can
maximize the current assets on its balance sheet to satisfy its current debt and other payables.
current assets
Current ratio= Current liability
TABLE NO 18
YEAR CURRENT ASSET CURRENT RATIO
LIABILITIES IN Rs
2018-2019 101,911,474.56 150,428,779.57 0.44
2019-2020 132,492,977.48 300,753,590.29 0.67

INTERPRETATION

As per the table clearly shows that the current ratio of the firm is not satisfactory during the year 2018-2019
and 2019-2020 as it is shown in the table current liabilities are more than current asset this shows that the
company has to face a lot of expenses and therefore there is a marginal decrease in the following year

QUICK RATIO

The quick ratio is an indicator of a company’s short-term liquidity position and measures a
company’s ability to meet its short-term obligations with its most liquid assets. Since it indicates
the company’s ability to instantly use its near-cash assets (assets that can be converted quickly
to cash) to pay down its current liabilities, it is also called the acid test ratio. An "acid test" is a
slang term for a quick test designed to produce instant results.

Quick asset Quick ratio= Quick liability

TABLE NO 19
YEAR QUICK ASSET QUICK LIABILITY RATIO IN RS
2018-2019 91538841.21 150428779.57 0.60
2.019-2020 119185597.91 300753590.29 0.39

INTERPRETATION

As per the table clearly shows that the quick ratio of the company is not satisfactory during the year
20182019 and 2019-2020 as it is shown in the table quick liabilities are more than quick asset this shows
that the company has to face a lot of expenses, the lower the ratio the more likely the company will struggle
with paying debts.
DEBT EQUITY RATIO

The debt-to-equity (D/E) ratio compares a company's total liabilities to its shareholder equity
and can be used to evaluate how much leverage a company is using.
Higher leverage ratios tend to indicate a company or stock with higher risk to shareholders.

Long term Debts

Debt equity ratio=
Shareholder’s fund
TABLE NO 20
YEAR LONG TERM DEBTS SHARE HOLDERS RATIO
FUND
2018-2019 48850113.83 97149416.31 0.50
2019-2020 49840107.67 99163456.39 0.50

INTERPRETATION

A low debt-to-equity ratio indicates a lower amount of financing debt to lenders, versus Funding through
equity shareholder A higher ratio indicated that the company is getting more of its financing by borrowing
money, which subjects the company to potential risk if debt levels are too high.
DEBT TO TOTAL ASSETS RATIO

The debt-to-total-assets ratio shows how much of a business is owned by creditors (people it
has borrowed money from) compared with how much of the company's assets are owned by
shareholders. It is one of three calculations used to measure debt capacity, along with the debt
servicing ratio and the debt-to-equity ratio.

debt
Debt to total assets ratio =
Total asset

TABLE NO 21
YEAR DEBT TOTAL ASSET RATIO
2018-2019 48850113.83 396523718.47 0.12
2019-2020 49841017.64 427668684.85 0.11

INTERPRETATION

A ratio greater than 1 show that a considerable portion of the assets is funded by debt. In
other words, the company has more liabilities than assets. A high ratio also indicates that a
company may be putting itself at risk of defaulting on its loans if interest rates were to rise
suddenly.
PROPREITORY RATIO

The proprietary ratio (also known as the equity ratio) is the proportion of shareholders' equity to
total assets, and as such provides a rough estimate of the amount of capitalization currently used
to support a business.

equity
Proprietary ratio=
Total asset
TABLE NO 22

YEAR EQUITY TOTAL ASSET RATIO

2.18-2019 96362763.13 396423718.47 0.24
2019-2020 99272556.39 427668684.85 0.23

INTERPRETATION

The proprietary ratio shows the contribution of stockholders' in total capital of the company. A high
proprietary ratio, therefore, indicates a strong financial position of the company and greater
security for creditors. A low ratio indicates that the company is already heavily depending on debts
for its operations.

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46
 3.8 DATA ANALYSIS AND INTERPRETATION
OF CONSUMER BEHAVIOUR

QUESTIONNAIRE
48
I have prepared this questionnaire in order to know whether the customers are satisfied with the products
produced by AAVIN, to know their expectation, to know their opinion about the products and to know
whether the quantity, quality and taste of the product is satisfying for the customer. I have included
people belonging to all the age groups in order to know the difference in their choices and to know what
actually they need. My main aim is to know what the consumers want and what are the essential elements
to be used and what changes must be done in order to satisfy the consumers .

47
 STUDY ON THE AGE GROUP OF THE RESPONDENTS

TABLE NO 23

AGE GROUP FREQUENCY PERCENTAGE CUMULATIVE %

INFANT 2 2.32 2.3

CHILDREN 19 22.09 24.39

ADULT 65 75.58 100

TOTAL 86 100

FIG 2

2%
22%

76%

INFANT CHILDREN ADULT

INTERPRETATION

This question provides us the detail information about which age group the customer belongs to, as we can
see the options provided were infant, children and adult the maximum number of customers were adult
followed by children and then infant. This pie chart will help us to analyses the difference in choices made
by the three age groups so that we can easily come to know which age group of people are fascinated by
which kind of product so this was a simple study of which age group the customers belong to. According to
our research the percentage of adults present in my report is 75.6% denoted in grey color, no of children
present in my report is 22.1% denoted in orange color and finally No of infants present in my report is 3%
denoted in blue.as per the study 2 infants responded 19 children and 65 adults responded to the questionnaire

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 STUDY ON THE GENDER OF THE RESPONDENTS

TABLE NO 24

GENDER FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE
MALE 38 44.18 44.18

FEMALE 48 55.81 100

TOTAL 86 100

FIG 3

GENDER

1%

44.18, 44%

55%

MALE FEMALE

INTERPRETATION

The pie chart is most useful in this case, since there is no ordering to male and female; It also brings out
nicely that 58.8% of the case is female and 44.2% is male. This shows according to the study maximum
users of AAVIN are female and followed by male. Red color denotes female and Blue color denotes male
and the highest population according to the study is female.

As per the study the number of females responded are 48 and male respondent are 38 and we could clearly
see the percentage and the frequency be calculated

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 STUDY ON CONSUMERS PREFERNCE
TABLE NO 25

COMPANY FREQUENCY PERCENTAGE CUMULATIV

PERCENTAG

AMUL 37 43.02 43.02

AAVIN 37 43.02 86.04

CAVINS 7 8.13 94.17

AROKIA 5 5.81 100

TOTAL 86 100

FIG 4

PRODUCTS

9% 1%

45%

45%

AMUL AAVIN CAVINS AROKIA

INTERPRETATION

As per the study and according to the pie chart there is a heavy competition for products of AAVIN and
AMUL they are equally competing with each other and we could see that there is a good demand for
AAVIN products among the respondents and equally there is a heavy competition for AMUL products.
Blue color denotes AMUL, Red color denotes AAVIN, Yellow color denotes AROKIYA, Grey color
denoted CAVINS. According to the study 45% of respondents prefer products of AAVIN and 45% of
respondents prefer products of AMUL and 9% of respondents prefer products of CAVINS and Finally
comes AROKIYA with 5.81%.

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 STUDY ON CONSUMERS USAGE
TABLE NO 26
PRODUCT FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE
BUTTER 7 8.13 8.13
GHEE 3 3.48 11.61
ICE CREAM 24 27.90 39.51
MILK 46 53.48 92.99
KHOA 4 4.65 97.64
PANEER 2 2.32 100
TOTAL 86 100

FIG 5

PRODUCT

5%2% 8%
3%

28%

54%

BUTTER GHEE ICE CREAM MILK KHOA PANEER

INTERPRETATION
According to the study the most commonly used product by respondents is milk, therefore there is a great
demand and use for AAVIN milk followed by Ice-cream and followed by Butter and then comes Khoa,
Ghee and paneer, So as per the study there is a great number of users demanding for AAVIN milk. As per
the pie chart yellow color denotes Milk, grey color denotes Ice-cream, blue color denotes Butter, dark blue
color denotes Khoa, green color denotes Paneer, orange color denotes Ghee.53.5% demand is there for
Milk followed by 27.9% demand is there for Ice-cream then followed by 8.1% demand for Butter and then
followed by Khoa, Panner, Ghee with a much less demand.

53
 STUDY ON CONSUMERS SATISFACTION TOWARDS QUALITY
TABLE NO 27
RESPONSE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE

YES 66 76.74 76.74

NO 20 23.25 100

TOTAL 86 100

FIG 6

SATISFACTION LEVEL

23%

77%

YES NO

INTERPRETATION

Satisfaction is a measure of how products and services are being supplied, respondents felt that the service
quality of AAVIN milk is fair the color Blue denotes yes and orange denotes No

As per the study and the pie chart 76.7% of respondents are satisfied with the quality provided by AAVIN
this shows that the quality produced by AAVIN are fair enough and is satisfying for the respondents and
other 23.3% respondents have responded No as they are not satisfied by the quality of the products.
Therefore, the pie chart gives a clear picture to know whether the respondents are satisfied with the quality
of the product or not.
 STUDY ON CONSUMERS SATISFACTION TOWARDS PRICE

TABLE NO 28
RESPONSE FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE
YES 62 74.42 74.42
NO 22 25.58 100
TOTAL 86 100

FIG 7

PRICE

26%

74%

YES NO

INTERPRETATION

AAVIN is the greatest dairy satisfying development in India especially concerning costs, things, publicize,
and advance. And this absolutely proved in the study. As we can refer the pie chart 74.4% respondents are
satisfied with the price of AAVIN dairy product this clearly shows that most of the respondents are have
opted yes this shows they are satisfied, and as we could see 25.6% respondents are not satisfied with the
product

Blue color denotes yes and 74.4% respondent have opted yes and orange color denotes No and 25.6%
respondent have opted No as they are not satisfied with the dairy products produced by AAVIN.

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 STUDY ON CONSUMERS PERCEPTION

TABLE NO 29

RESPONSE FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE
YES 60 69.76 69.76
NO 26 30.23 100
TOTAL 86 100

FIG 8

RESPONSE

30%

70%

YES NO

INTERPRETATION

According to the study and responds given by the respondents we could clearly understand
most of the booth contains all the products produced by AAVIN Company and this is clearly
proven by just giving a look at the pie chart that is being presented Blue color denotes yes and
Red color denotes No, as we can see the study clearly says that 69.8% respondents have
opted and yes and remaining 30.2% of respondents have opted no.

Therefore, most of the respondents are agreeing to this point that all the dairy products produced
are being available at the dairy booth as per the study.

55
 STUDY ON CONSUMERS USAGE

TABLE NO 30
DAYS FREQUENCY PERCENTAGE CUMULATIVE
PERCENTAGE
DAILY 23 26.74 26.74
WEEKLY 22 25.58 52.32
MONTHLY 41 47.67 100
TOTAL 86 100

TIMES

27%

48%

25%

DAILY WEEKLY MONTHLY

INTERPRETATION

According to the study we could see that most of the respondents use AAVIN products at home
monthly and few of them use daily and few use AAVIN products at home weekly. Orange denotes
Monthly, Blue denotes Daily, Red denotes Weekly. As we could clearly see in the pie chart 47.7%
of respondents have opted monthly 26.7% have opted weekly and 25.6% have opted Daily.

Therefore, it clearly shows that most of the respondents use the products produced by AAVIN
Monthly and the rest use the products Weekly and few use the products almost Daily.

56
 CHAPTER 1V
FINDING AND SUGGESTION

4.1 FINDINGS

• The current ratio of the company is low as the value of current asset is low compared to the value
of current liability this does not sound good.

• The company’s balance sheet amount was fluctuated that is there was increase and decrease in its
value in fixed asset to current assets. So, the firm’s liabilities are increased compared to year to year.
Cash position of the company is changing year to year.

• The study clearly gave an idea about the marketing and sales that takes place in the company, the
goods are not only traded within the district but also being sold to another district.There is a huge
demand for the products from consumers most of the respondents are satisfied with the products
produced by AAVIN.

• There was a good rating given by the consumers as they were happy with the products The study
clearly gave an idea about the taste and preferences of the consumer and also came to know about
the changes that has to be made.

• The study gave a clear picture of how the products are being produced and processed and how it is
being sold in the market Most of the profit earned are from AAVIN parlor that is situated all along
the town and most of the income received is from the adult group.

• The company is not running under profit as well as loss as the consumer demand for the product
produced by our competitors. The company’s profit is the main source of income of the government
as they are taking various step in the betterment of the product.

• There are many loans borrowed by the company that makes them a debtor and by increasing the
demand they try to repay their debts and compensations. The company has a lot of debt as we can
clearly notice that liabilities of the company are more compared to assets of the company.

57
4.2 SUGGESTIONS

• The company has to buy more asset for the company as the liability of the company is more
in order to improve the financial position of the company the company has to bring more
asset.

• The company has to increase the quantity of the product that is being produced by them as
the consumers fell the quantity of the product is not worthwhile. The quality of the product
has to be increased as the company is owned by the government the consumers feel the
quality of the product is low therefore there should be an increase in the quality of the
product

• The price of the product should be increased only then the company can earn a lot of profit.
Advertising is very necessary as most of the consumer are not aware about AAVIN so in
order to make profit there is a need more customers so therefore advertising is necessary

• The loans borrowed should be repaid as soon as possible or else the company can go to a
utter loss.

• All the products of AAVIN should be made sure to be available in the parlor as most of the
consumers complain that most of the products are not available in the parlor. The consumers
should be given a clear awareness about the products only then there will be customers to
buys the products.

• Firstly, the main aim of the company should be to increase their profit otherwise they can
anytime face a huge loss. AAVIN can introduced more products such as cakes and many
milk products so there could be a good demand for them.

• The target can be the female as they are the leading users of the products so we can produce
better goods as per their choice.

• More machinery can be purchased in order to make the processes a bit faster as compared
to the present.

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4.3 CONCLUSIONS

AAVIN milk has a good reputation among the customers so it can be extended to supply rural
also. From various respondents the researcher has gathered lot of information's about AAVIN
Milk’s buying Behavior. AAVIN milk is already enjoying No 1 position in Milk Industry; this gives a
positive stand to further strengthen its position. Finally, it concludes that "AAVIN is the market
leader in milk Industry".

dairies should work by judiciously building an efficient system integrating the activities of several factors.
The Dairy Council, the Cattle Breeders Association, The Herd book, veterinary services, insemination
services, monitoring of milk, milking parlors and dairies. All the cow's need should be supplied in its
immediate environment so that the cow's energy is devoted to milk production. The dairy industry has to
integrate the feeding system, genetic data, advanced milking system, milk transport and processing
facilities, administrative tasks, and skilled manpower. Up-to-date information on each cow is essential to
the achievement of high yield. The data is to be recorded in Herd book, which contains information on most
of the cows, including the genealogy of many generations.

The Herd book is a reservoir of accessible, computerized data, It is continuously updated by a flow of data
about health and sickness, breeding, milk production, physical data and any other information essential to
sound dairy monitoring and management. The data bank anabas real time retrieval of information. The Herd
book is essential to the monitoring and management of herd improvement. A Milk Monitoring Laboratory
keeps track of the yield of cows every month. The lab data is downloaded directly to the Herd book’s
computer. The lab's task is to detect cows with a latent infection of the udder and to gather milk production
statistics on each cow and each dairy farm.

The co-operatives are encouraged by the government, so that the bottom line (farmers producing milk) are
benefited. In case of private dairies, the main objectives are the same as that of any business i.e., to earn
profit. The co-operatives consist of large number of decisions made

The marketing practices followed are on the similar times between cooperative and private sector. The
difference will be because of the capacities of the plants/markets concerned. However, it can be concluded
that the co-operatives will benefit a lot it they adopt the progressive attitude of M/s. Chital Bandh along
with their professionalism and efficiency

59
 BIBLIOGRAPHY

REFERNCE
1. ^ Products on company website
2. ^ "Swiggy to retail AAVIN products". Business Standard India. 26 April 2020. Retrieved 12 March 202
3. ^ Jump up to:a b c "Aavin invites auto and taxi drivers to work as its 'mobile agents' across Tamil Nadu".
The New Indian Express. 24 July 2020. Retrieved 12 March 2021.
4. ^ Dairy Development Department, Government of Tamilnadu. "Policy Notes". Archived from the original
on 16 March 2012. Retrieved 16 July 2010.
5. ^ "Hi-Tech Aavin parlour to come up in Coimbatore". Kovai Daily. 1 August 2020. Retrieved 2 August
2020.
6. ^ Jump up to:a b c d Sundaram, Ram (26 February 2021). "Tamil Nadu CM lays foundation stone for
Aavin plants in ooty | coonoor news- Times of India". The Times of India. Retrieved 12 March 2021.
7. ^ Karthik, Deepak (15 February 2021). "Aavin to set up ice cream plant in Trichy | Trichy News - Times
of India". The Times of India. Retrieved 12 March 2021.
8. ^ Government of Tamilnadu (11 March 2008). "Press Release Notes" (PDF). Retrieved 16 July 2010.
9. ^ "Aavin launches special sweets for Deepavali". The Hindu. Special Correspondent, Special
Correspondent. 26 September 2017. ISSN 0971-751X. Retrieved 11 October 2017.
10. ^ "Aavin Milk Adulteration Racket Busted". Times of India.

QUESTIONNAIRE

Circulated within the country

FINANCIAL STATEMENTS

Financial details have been collected from the financial report of the company.

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