SUMMER INTERNSHIP REPORT

ON
“BUDGET ANALYSIS OF VERKA MILK PLANT”

Submitted in partial fulfilment of the requirements for the degree of

Bachelor of Commerce (2017-2020) affiliated to Punjab Technical
University, Jalandhar

PROJECT GUIDE: SUBMITTED BY:

MISS.PALAK GUPTA HAPPY RAM
(CHARTERED ACCOUNTANT)
MR.VISHAL THAKUR
(LAB ASSISTANT)

DIPS Institution of Management & Technology,

Jalandhar
JUNE, 2019
 CERTIFICATE
Certified that the summer internship project report “budget analysis of
verka milk plant” is the bonafide work of Happy Ram, student of
Bachelor of Commerce of DIPS Institute of Management &
Technology, Jalandhar carried out under my supervision.
 ACKNOWLEDGEMENT
At the level of learning, it is often difficult to understand the wide spectrum of
knowledge without proper guidance. Guidance and encouragement are the two
ways that leads to the path of success.
Gratitude cannot be seen or expressed. It can only be felt in heart and is beyond
description. It is of immense pleasure and profound privilege to express my
gratitude and indebtedness along with sincere thanks to my mentor at Verka
Milk Plant, Mr. Vishal Thakur for providing me the guidance.
I express my heartfelt thanks to all the worthy employees of Verka for their
guidance and support. I am sincerely grateful for providing me this wonderful
opportunity to work at Verka Milk Plant for Summer Internship.
I was to formally acknowledge my sincere gratitude to all those who assisted
and guided me in completing this project report.

Happy ram
 EXECUTIVE SUMMARY
For management careers, it is very important to develop managerial skills .In
order to achieve positive and concrete results, along with theoretical concepts,
the exposure of real life situation existing in a corporate world is very much
needed.
The project is concern with “budget analysis of verka milk plant”. Budget
statements are prepared by an organisation not only for record keeping but also
analysing and interpreting to enhance its performance in coming future.
The budget used by the organization is exactly the same with what is recorded
in written documents. It is essential for counter-checking to be observed as this
process and document deals with the financial resources of the business.

Thus, the project deals with the analysing the results through a very important
tool i.e. budget.
.
 TABLE OF CONTENTS
SNO. PARTICULARS PAGE
1 TITLE PAGE 1
2 CERTIFICATE 2
3 ACKNOWLEDGEMENT 3
4 EXECUTIVE SUMMARY 4
5 TABLE OF CONTENT 5
6 CHAPTER – 1 : INTRODUCTION

1.1 MILKFED 6
1.2 VERKA 7
1.3 MISSION, VISION AND OBJECTIVES 8
1.4 VERKA NETWORKS 9
1.5 SWOT ANALYSIS 10
1.6 COMPETITORS 11
1.7 PRODUCTS 12-13
7 CHAPTER – 2 : JALANDHAR MILK PLANT

2.1 THE DOABA COOPERATIVE MILK PRODUCERS UNION LT 14

2.2 MILK HANDLING AND PRODUCT CAPACITIES 15
2.3 TURNOVER 15
2.4 SECTIONS 16
2.5 DEPARTMENTS 16
2.6 FINANCE& ACCOUNTS 17
2.7 BALANCE SHEET 18
8 CHAPTER – 3 : BUDGET ANALYSIS

3.1 INTRODUCTION 19
3.2 OBJECTIVES 20
3.3 ADVANTAGES AND DISADVANTAGES 21
3.4 CLASSIFICATION 22
3.5 BUDGET 23-36
9 CONCLUSION 37
10 REEARCH METHOLOGY 38
11 SUGGESTIONS 39
12 REFRENCES 40
 CHAPTER – 1
INTRODUCTION
1.1 MILKFED-PUNJAB:
The Punjab State Cooperative Milk Producers’ Federation Limited popularly
known as Milkfed Punjab, came into existence in 1973 with a twin objective of
providing remunerative milk market to the milk producers in the state by value
addition and marketing of produce on one hand and to provide technical inputs
to the milk producers for enhancement of milk production on the other hand.
The setup of the organization is a three tier system:
 Milk Producers Cooperative Societies at the village level
 Milk Unions at District Level
 Milk Federation as an Apex Body at State level.

Though the federation was registered quite earlier, it came into its real form in
the year 1983 to provide better deal to the farmers and better products to the
customers.
First Milkfed Plant of the State was setup near the Amritsar. The brand name of
milk and milk Products was adopted as Verka. Commissioning of the plant was
done by Dairy Development Corporation in 1974.
The organization has continuously advanced towards its coveted objectives well
defined in its bylaws.
1.2 VERKA:
Verka is a flagship brand of MILKFED and came into being in 1973 when
MILKFED was mandated for milk procurement, quality processing of milk & its
products and marketing of these products. “Verka” was christened after the
name of the place where the first plant was setup in Amritsar.
A trusted brand, Verka has become a household name and is loved by its
customers for nutrition, quality and sheer indulgence.
It has consolidated its brand strength by not only retaining the high quality of
existing products but also by innovating and bringing new products to the tables
of its diverse customers.

Verka stands apart, with its promise of purity! In the milk testing done by NABL
(National Accreditation Board for Testing and Calibration Laboratories)
accredited laboratory, Verka Gold has topped the full cream milk category with
a score of 88 out of 100.
The brand registered the highest milk fat at 6.69%, a lower saturated fat of
3.52%, and lower cholesterol content of 8.67mg/100g. Verka milk is also loaded
with Calcium and Vitamin A.
Currently, Verka sources milk from over 3,50,000 members of around 6300
village milk producers’ cooperative societies.
These village level cooperatives work under 11 district milk producers’ unions
with 9 milk plants having a consolidated milk handling capacity of around
20,00,000 litres per day.
Each Verka product is the manifestation of natural goodness unlocked by
adopting state of the art technology.
1.3 MISSION, VISION AND OBJECTIVES:
Vision:
To become the most admired brand in the dairy sector and vibrant cooperative
institution in the country, facilitating inclusive growth.
Mission:
Ensuring prosperity to the milk producers’ by ensuring milk procurement at
remunerative prices around the year coupled with providing quality extension
services for enhancing milk production as well as reducing costs. Ensuring
quality processing of milk and production of milk products in a clean, hygienic
manner and making them available to the consumers at reasonable prices
through excellence in marketing.

Objectives:
a. To ensure quality milk procurement at remunerative price coupled with
improved animal productivity for reducing cost of milk production for
sustainable growth of the milk producers
b. To provide quality extension services at the door steps of milk producers
c. To ensure Quality Assurance in procurement, processing & marketing and
enhancing efficiency in the entire value chain
d. To ensure acquisition, development and retention of competent manpower
e. To improve fiscal management by optimizing the returns on capital
f. To ensure continual modernization in the entire value chain through
effective leveraging of technology
g. To embrace innovation in the entire value chain for consumer delight
h. To ensure continual expansion of distribution
i. To enhance brand equity
1.4 VERKA NETWORKS:
With an aim to maximum reach out to its consumers, Verka has developed a
widespread network of milk unions in different towns of Punjab.

FEROZPUR
SANGRUR FARIDKOT

CHANDIGARH BATHINDA

VERKA
MOHALI AMRITSAR
NETWORKS

PATIALA GURDASPUR

LUDHIANA HOSHIARPUR

JALANDHAR

Milkfed has strong base with 11 District Cooperative milk unions having 9 milk
plants of the unions (except Ferozpur & Faridkot).
Milkfed has 2 Cattle Feed Plants at Khanna and Ghania Ke Banger, 1 Fodder
Seed Processing Unit at Bassi Pathana, 1 Frozen Semen Station at Khanna and
UHT cum Ice Cream Manufacturing Plant at Chandigarh. The handling capacity
of milk plants is 19.75 lac litres per day.
With advanced technology and customer satisfaction in mind, Verka strives to
provide best quality products to its esteemed customers in almost all of Punjab.
1.5 SWOT ANALYSIS
STRENGTHS:-

 Brand Loyalty among the Costumer for Verka products.

 Good brand image of Verka products in the minds of Costumer.
 Faith on Verka products by the Costumer.

WEAKNESSES:-

 Lack of proper advertisements by the plant, such as posters, glow signs

etc.
 Lack of proper agencies system in covering the rural areas.
 Lack of proper marketing network in rural areas as like in urban areas.

OPPORTUNITIES:-

 Greatly improved expert potential for milk products of western as well as

traditional types.
 Proper utilisation of available resources to decrease per unit cost.
 By product utilisation for import substitution.

THREATS:-

 Introduction of foreign products in Indian market.

 Poor quality of milk.
 The liberalisation of Dairy Industry is likely to be exploited by multi -
nationals. They will be interested in manufacturing milk products which
yield high profits.
1.6 COMPETITORS
AMUL
• Amul is an Indian dairy cooperative, based at Anand in the
state of Gujarat, India. Amul's product range includes milk
powders, milk, butter, ghee, cheese, dahi, yoghurt,
buttermilk, chocolate, ice cream, cream, shrikhand, paneer,
gulab jamuns, flavoured milk, basundi and others.

METRO MILK
Metro milk are one of the leading manufacturers of milk and
milk products.They deliver superior quality milk and milk
products in the domestic as well as international market. The
company has been catering to the demand of buyers with its
quality, purity and hygiene.Metro has hundreds of village level
collection centres covering most of the punjab from where the
milk is collected twice a day

MOTHER DAIRY
• Mother Dairy Fruit & Vegetable Pvt Ltd is an Indian company
that manufactures, markets and sells milk, milk products and
other edible products.[1] Its milk products include cultured
products, ice cream, paneer and ghee under the Mother
Dairy brand. The company also sells edible oils, fresh fruits
and vegetables, frozen vegetables, and processed food like
fruit juices, jams, pickles etc.

BABA MILK PRIVATE LIMITED

• Baba Milk Private Limited was registered at Registrar of
Companies Chandigarh and is categorised as Company limited by
Shares and an Non-govt company.Baba Milk Private Limited is
involved in Business Services Activity and currently company is in
Active Status.
1.7 PRODUCTS – VERKA
Verka is a prominent player in organized pouch milk segment in Punjab and
adjoining areas, yet the organization is not short of innovative spirits. Verka has
full-fledged jumped into other segments as well, whether its beverage, sweets
or exotic ice creams. Adding to the consumer range, Verka also provides bulk
packs for milk, paneer, dahi etc. which makes it a prominent supplier.

POUCH MILK DAHI LASSI

PANEER FLAVOURED MILK RASEELA

TABLE BUTTER CHEESE SPREADS CHEESE SINGLES

 SWEETS MILK POWDER KHEER

GHEE PROCESSED CHEESE CUPS

NIMBU PANI MANGO SHAKE KULFIS AND CONES

JEERA RAITA AAM PANNA CHOCO MILK

 CHAPTER – 2
JALANDHAR MILKPLANT
2.1 THE DOABA COOPERATIVE MILK PRODUCERS UNION LTD,
JALANDHAR:
The Doaba Cooperative Milk Producers Union Ltd., Jalandhar was set up in the
year 1972 under Cooperative Sector with the financial assistance provided by
State Government and N.C.D.C. The .Doaba Milk Plant was established in the
year 1976 with a capital cost of Rs.110 lakhs.

The primary objectives of the Union were to provide ready market to the Milk
Producers for sale of Milk in the villages through Cooperatives on the one hand
and to provide wholesome hygienic good quality processed milk and milk
products to the urban consumers at remunerative price on the other hand.
The Milk shed area of Milk Union comprises districts of Jalandhar, Kapurthala
and Nawanshahar. It consists of 7 Tehsils namely Jalandhar, Nakodar, Phillaur,
Kapurthala, Sultanpur Lodhi, Phagwara and Nawanshahar covering 1834 villages
in 18 blocks.
2.2 MILK HANDLING AND PRODUCT CAPACITIES:
Sr. MILK HANDLING AND PRODUCT
No. CAPACITIES - MILK UNION JALANDHAR
1 City Supply 165000 Litres per day
2 Dahi 10 MT/day
3 Lassi 25 MT/day
4 Paneer 1500 KGs per day
5 Kheer 800 KGs per day
6 Ghee 10 MT/day
9 Panjiri (CDPO) 8.2 MT/day
10 White Butter 12 MT/day
TOTAL MILK 150000 Litres per day
HANDLING CAPACITY

2.3 TURNOVER: VERKA JALANDHAR

2.4 SECTIONS IN VERKA MILK PLANT:
Verka is very well known for its quality and taste. This is not possible without
proper organisation of the production structure. Thus to maintain such high
standards of quality, it is divided into different sections which are as follows:

MILK PROCESSING SECTIONS

CURD SECTION

KHEER SECTION

GHEE SECTION

LASSI SECTION

PANEER SECTION

BUTTER SECTION
2.5 DEPARTMENTS:
PROCUREMENT AND LIVE STOCK

QUALITY ASSURANCE AND ENGINEERING

MARKETING

MIS,SYSTEMS AND IT

PURCHASE

FINANCE AND ACCOUNTS

ADMINISTRATION
2.6 FINANCE AND ACCOUNTS DEPARTMENT:
Accounting is the art of recording, classifying and summarizing in a significant
manner, and in terms of money transactions and events which are in part at
least of financial character and interpreting the results thereof.

In milk plant Jalandhar this section performs the functions of maintaining the
accounts of stores material and milk products by union and to make payments
at right time. Like this to maintain the accounts of milk and milk products sold
by the union and to receive the payment for goods sold to consumers,
concerned sections and branches. The bills are prepared by accounts branch
according to 10 days milk purchase from producers and societies. It is the duty
of this section to maintain the accounts according to rules and regulations
mentioned by Registrar Co-operative Department and to follow the restrictions
and suggestions imposed by auditor.
GENERAL MANAGER

MANAGER ACCOUNTS

DY. MANAGER ACCOUNTS

ACCOUNTANT

JUNIOR ACCOUNTANT

ACCOUNTANT CLERK

BILL CLERK

CASHIER

ASST. CASHIER

TYPIST/PEON
2.7 BALANCE SHEET OF DOABA FOR THREE YEARS:
S.NO PARTICULARS NOT AS AT 31st AS AT 31st AS AT 31ST
E MARCH 2018 MARCH 2017 MARCH 2016
A CAPITAL AND
LIABILITIES
1 Members’ fund
Share capital 1 15470636.00 15122084.00 14802702.00
Reserves & surplus 2 838589448.00 33616615.00 5602613.36

2 Non-current
liabilities
Long term 3 0.00 37365000.00 37365000.00
borrowings
Other liabilities 4 150250379.50 135502552.00 90156218.00
Long term provisions 5 5951646.00 4021393.00 2578413.00

3 Current liabilities
Sundry creditors 6 268703744.15 18611775.93 77050901.10
Short term 7 302089409.00 0.00 0.00
borrowings
Other liabilities 8 7849211.90 103510672.34 93318137.69

4 Profit & loss account 45560164.30 28566463.71 54199787.34

TOTAL 1705107538.8 543866555.98 375073772.4
5
B ASSETS
1 Non-current assets
Fixed assets 9 924093430.96 85327608.46 38176299.46
Capital work in
progress
Non-current 10 13437226.00 13368025.00 12522025.00
investments
2 Current assets
Inventories 11 459816724.31 283698152.30 240482016.00
Sundry debtors 12 101414743.52 14118502.00 23253392.43
Cash and bank 13 39609129.73 71616108.66 39054089.74
balances
Loan and advances 14 166736284.33 75738159.56 21585949.86

3 Profit & loss account 0.00 0.00 0.00

TOTAL 1705107538.8 54866555.98 375073772.49
 CHAPTER – 3
BUDGET ANALYSIS
3.1 INTRODUCTION:
3.1.1 Budget.
A budget is a written record of income and expenses during a specific
time frame, typically a year.
You use a budget as a spending plan to allocate your income to cover
your expenses and to track how closely your actual expenditures line
up with what you had planned to spend.

An essential part of personal budgeting is creating an emergency fund,

which you can use to cover unexpected expenses. You also want to
budget a percentage of your income for saving and investing, just as
you budget for food, housing, and clothing.
Businesses and governments also create budgets to govern their
expenditures for a fiscal year -- though like individuals they make
regular adjustments to reflect financial reality. And, like individuals,
businesses and governments can find themselves in trouble if their
spending outpaces their income.

What is an annual operating budget?

An operating budget is the annual budget of an activity stated in terms
of Budget Classification Code, functional/subfunctional categories and
cost accounts. It contains estimates of the total value of resources
required for the performance of the operation including reimbursable
work or services for others.

In the United States, businesses along with state and local

governments divide their budgets into two types: the operating budget
and capital budget. The operating budget is used to keep track of
maintenance operations, salaries, and interest payments.
Objectives of Budgeting
To determine organisational objectives.
To minimise waste and control expenses.
To plan and control the income and expenditure of the firm.
To fix responsibilities in different departments or heads.
To ensure the availability of working capital.
To centralize the control system.
Increase profitability through elimination of waste.
To take remedial action in order to correct deviations from established
standards.
To find in which area action is needed and to solve the problem
without delay.
To provide long term and short term plans for attaining organisational
goals.
Installations of Budgetary Control
The organisation which has to achieve an effective system of budgetary
control will need the following steps.
1. Organisation Chart. A concern must have a well defined
organisation chart for budgetary control. It is essential in order to have
clear determination of authority and responsibility of each individual.
Determination of authorities helps to minimise conflict among the
personnel.
2. Objectives. It requires a clearly defined objective in terms of both
quantity and quality that are sought to be achieved by the system of
budgetary control.
3. Budget Centre. A budget centre is a part of the organisation for
which budget is prepared to cover entire operational activities of the
organisation. It is necessary for cost control purposes. With the help of
the different budget centres, performance should be evaluated in an
easy manner.
4. Budget Committee. Budget committee should be established for
the purpose of incorporation and execution of plans. In small
organisations, either the Cost Accountant or Chartered Accountant
prepares the budget. In case of big companies a separate committee is
formed for this task. The committee consists of various section heads,
the chief executive and the budget controller. The ultimate aim of
budget committee is to prepare a master budget with the help of the
department wise budget which has already been prepared by the
departmental executives.
5. Budget Manual. It is a written document which sets out the
authorities and responsibilities of persons engaged in regular
operational activities. It clearly lays down objectives of the organisation
and the procedure to be followed by the executives concerned. It is the
responsibility of the budget officer to prepare and maintain this
manual.
The advantages of budgeting include:

Planning orientation. The process of creating a budget takes

management away from its short-term, day-to-day management of the
business and forces it to think longer-term. This is the chief goal of
budgeting, even if management does not succeed in meeting its goals
as outlined in the budget - at least it is thinking about the company's
competitive and financial position and how to improve it.

Profitability review. It is easy to lose sight of where a company is

making most of its money, during the scramble of day-to-day
management. A properly structured budget points out what aspects of
the business produce money and which ones use it, which forces
management to consider whether it should drop some parts of the
business or expand in others.

Assumptions review. The budgeting process forces management to

think about why the company is in business, as well as its key
assumptions about its business environment. A periodic re-evaluation
of these issues may result in altered assumptions, which may in turn
alter the way in which management decides to operate the business.

Performance evaluations. You can work with employees to set up their

goals for a budgeting period, and possibly also tie bonuses or other
incentives to how they perform. You can then create budget versus
actual reports to give employees feedback regarding how they are
progressing toward their goals. This approach is most common with
financial goals, though operational goals (such as reducing the product
rework rate) can also be added to the budget for performance
appraisal purposes. This system of evaluation is called responsibility
accounting.

Funding planning. A properly structured budget should derive the

amount of cash that will be spun off or which will be needed to support
operations. This information is used by the treasurer to plan for the
company's funding needs.

Cash allocation. There is only a limited amount of cash available to

invest in fixed assets and working capital, and the budgeting process
forces management to decide which assets are most worth investing
in.

Bottleneck analysis. Nearly every company has a bottleneck

somewhere, and the budgeting process can be used to concentrate on
what can be done to either expand the capacity of that bottleneck or
to shift work around it.
The disadvantages of budgeting include the following:

Time required. It can be very time-consuming to create a budget,

especially in a poorly-organized environment where many iterations of
the budget may be required. The time involved is lower if there is a
well-designed budgeting procedure in place, employees are
accustomed to the process, and the company uses budgeting software.
The time requirement can be unusually large if there is a participative
budgeting process in place, since such a system involves an unusually
large number of employees.

Gaming the system. An experienced manager may attempt to

introduce budgetary slack, which involves deliberately reducing
revenue estimates and increasing expense estimates, so that he can
easily achieve favourable variances against the budget. This can be a
serious problem, and requires considerable oversight to spot and
eliminate.

Blame for outcomes. If a department does not achieve its budgeted

results, the department manager may blame any other departments
that provide services to it for not having adequately supported his
department.

Expense allocations. The budget may prescribe that certain amounts of

overhead costs be allocated to various departments, and the managers
of those departments may take issue with the allocation methods
used.
Spend it or lose it. If a department is allowed a certain amount of
expenditures and it does not appear that the department will spend all
of the funds during the budget period, the department manager may
authorize excessive expenditures at the last minute, on the grounds
that his budget will be reduced in the next period unless he spends all
of the amounts authorized in the current budget.
Only considers financial outcomes. Budgets are primarily concerned
with the allocation of cash to specific activities, and the expected
outcome of business transactions - they do not deal with more
subjective issues, such as the quality of products or services provided
to customers. These other issues can be stated as part of the budget,
but this is not typically done.
Strategic rigidity. When a company creates an annual budget, the
senior management team may decide that the focus of the
organization for the next year will be entirely on meeting the targets
outlined in the budget. This can be a problem if the market shifts in a
different direction sometime during the budget year. In this case, the
company should shift along with the market, rather than adhering to
the budget.
 Classification of Budget
Different types of budgets have been developed keeping in view the
different purposes they serve. Some of the important classifications of
the budgets are discussed below.
A. Classification According to Time
Based on the time factor, budgets are broadly classified in the
following three types.
(i) Long term Budgets. This budget is prepared normally for a period of
5 to 10 years. Example: Capital expenditure budget, research and
development, long term finances etc.
(ii) Short term Budgets. Short term budgets are those which have to be
prepared for a period of one or two years. Example: Cash Budget,
Material Budget etc.
(iii) Current Budget . Current budget is one which has to be prepared
for a very short period say a month or a quarter year and is related to
the current conditions.
B. Classification According to Function
(i) Sales Budget. Sales budget is a forecast of total sales (volume)
during the budget period. It may contain the information regarding the
sales, month wise, product wise, and area wise. This budget is
prepared by the sales manager.
(ii) Production Budget. Production budget is prepared by the
production manager. In other words, it is a quantity of units to be
produced during a budget period.
Production units may be calculated in the following way: budgeted
sales+ desired closing stock – opening stock.
(iii) Materials Budget. Material procurement budget is an estimate of
quantities of raw materials to be purchased for production during the
budget period. It helps the organisation to formulate effective purpose
policy of raw materials. Materials budget should be prepared normally
taking into account the following factors i.e., availability of finance,
storage facilities, price trends in the markets.
(iv) Labour Budget. Labour budget is a budget which is prepared by the
personnel department of the organisation. It shows the total hours
required to complete the production target. And also it shows the cost
incurred for the labour used for the production.
(v) Cash Budget. Cash budget is prepared by the chief accountant of
the organisation. It may be prepared either monthly or weekly. Cash
budget is a statement to show the estimated amount of cash receipts
and payment and balance during the budget period. Simply, it
represents the estimated cash receipts and payments over the specific
future period.
(vi) Master Budget. Master budget is a budget which has to
incorporate all functional budgets. The definition of this budget given
by the Chartered Institute of Management Accountant, England is as
follows. “The summary budget, incorporating its component functional
budgets and which is finally approved, adopted, and employed.” It is
otherwise called as finalised profit plan. Normally, it has to be
approved by the board of directors before it is put into operational
activities.
Classification According to Flexibility
(i) Fixed Budget. A fixed budget is drawn for a fixed level of activity and
a prescribed set of conditions. It has been defined as “a budget which
is designed to remain unchanged irrespective of the volume of output
or level of activity actually attained”. In the real sense, it does not
consider any change in expenditure arising out of changes in the level
of activity.
(ii) Flexible Budget. Flexible budget is otherwise called as variable
budget. The Chartered Institute of Management Accountants, England,
defines a flexible budget “as a budget which by recognizing the
difference in behaviour between fixed and variable costs in relation to
fluctuations in output, turnover or other variable factors such as
number of employees is designed to change appropriately with such
fluctuations”.

ZERO BASE BUDGETING

Definition of Zero base Budgeting
Zero base budgeting is defined as “a planning and budgeting process
which requires each manager to justify his entire budget request in
detail from scratch (hence zero base) and shifts the burden of proof to
each manager to justify why he should spend money at all.
Steps in Zero Base Budgeting
Determination of objectives
Determination of extent of application
Identification of decision making units
Through the cost-benefit analysis
Preparation of budgets
PERFORMANCE BUDGETING
Any type of budgeting, in order to be successful, must provide
performance appraisal as well as follow-up measures. Without
performance appraisal and follow-up measures, the budget will not be
successful. In this regard, responsibility canter and a programme of
expected performance in physical units of that centre must be
established. According to the National Institute of Bank Management,
Mumbai, performance budgeting technique is the process of analysing,
identifying, simplifying and crystallizing specific performance objectives
of a job to be achieved over a period in the framework of the
organizational objectives. The technique is characterized by its specific
direction towards the business objectives of the organization.
RESEARCH METHODOLY:

The present study is carried out to carry out the ratio analysis of the company.
The data in respect to this report is collected from the balance sheets and
statement of profit & loss accounts.
Thus, secondary data has been majorly used while preparation of this project
along with the internet sources.
Primary data in the form of personal interaction with employees has also been
used.
Secondary data was very much helpful as it provided minor details and ensured
accuracy throughout the project whereas primary data provided practicality and
ensured reliability.
 SUGGESTIONS:

 The company should focus more and more on innovation and

technological developments.
 The company should make efforts towards marketing and more awareness
among people to increase sales.
 The company should try to cut their expenses in order to reduce its prices
which will help them to face competition.
 The company should try to pay off their debts as soon as possible so as to
lower down the finance costs.
 The company’s major part of current assets is blocked in inventories. It
must be avoided.
REFERENCES:

1. Verka – About us (2017)

http://www.verka.coop/page/about-us

2. Verka – Verka Network (2017)

http://www.verka.coop/page/verka-network

3. Verka: Different products (2016)

https://www.google.co.in/search?q=verka+different+product

4. Verka milk plant –Ratio analysis (2014)

http://www.slideshare.net/jyoti1992/verka-ppt-on-ratio

5. Verka milk plant - Jalandhar

http://www.verka.coop/page/jalandhar

6 .Verka- milk handling capacity

http://www.verka.coop/page/milk-handling-and-
production-capacities-jalandhar

7. Verka – milk products

http://www.verka.in/page/milk-fresh-products