Analysis of Sales and Balance Confirmation With The Distributors

Little Drops of Joy
A
Project Study Report
On
Training Undertaken at
Titled
Analysis of Sales and Balance

confirmation with the
Distributors
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
Submitted By: - Submitted to:-

Rahul Dhar Dr. Kavaldeep Dixit
MBA Sem. (IV) Asst. Principal
International School of Informatics & Management (Jaipur)
International School of Informatics & Management, Jaipur 2

(Affiliated to Rajasthan Technical University, Kota)
ACKNOWLEDGMENT
“Success is nourished under the kind of combination of perfect

guidance, care and blessings.”
I would like to express my profound gratitude towards Hindustan
Coca-Cola Beverages Private Limited (HCCBPL) for giving me the

opportunity to do the summer internship with the company and be a
part of the HCCBPL. The training has been one of enlightenment and
immense learning in the overall business sense.
I extend my sincere and heart felt gratitude to Mr. Pawnesh Maniramka

and my project guide Mr. Manish Khanna, without whose constant
monitoring and support I would not have done justice to my project.
A special word of thanks to Mr.Sanjeev Kakkar, Mr.Sumit Gupta,

Mr.Sumit Ladha, Mr.Ritesh Maharwal and Mr.Lalit Sankhla for their
continuous and valuable guidance which helped me to carry out my
endeavors in the right direction.
Last but not the least, I would like to thanks whole of the staff of
HCCBPL and all the people with whom I have interacted during the
course of my project, whose valuable feedback and guidance helped
me in completing my project.

TABLE OF CONTENTS
Executive Summary 5
Objective of the Study 6
About the Company 7
Channel Management 10
Distribution System 11
Competitors 13
Sponsorship of Sporting Events 18
Criticism of Coca Cola 20
Mission, Vision & Values of Coca Cola 23
Coca Cola- A Brief History 24
The Indian Soft Drink Market 28
Products of Coca Cola 35
Manufacturing Process 48
Abbreviation List 54
Project 1 56
Project 2 62
Limitations of the Study 81
Appendices 82
Bibliography 83

EXECUTIVE SUMMARY
Coca Cola one of the leading beverage manufacturing company not

only in India but also in the world. In India it operates under the name
of Hindustan Coca Cola Beverage Private Limited (HCCBPL) also known
as Coca Cola India (CCI). Its head-office is located in Atlanta, and Indian
corporate office is in Gurgaon and Hong-kong is headquarter of “The
Coca Cola Company” (TCCC) for the South-East Asian region. There are
various Production and Marketing offices spread all over India.
The training which spanned over 8 weeks was divided on a Project

basis. The description of which is being given below:
In the first week it was all basic things to be done like knowing about
the working of the company along with the project of the balance
confirmation with the Distributor’s.
In the remaining weeks it was all about my major project that was
Analysis of Sales and Account Receivable Process and Reconciliation

OBJECTIVE OF THE STUDY
Coca Cola one of the leading beverage manufacturing company not

only in India but also in the world. In India it operates under the name
of Hindustan Coca Cola Beverage Private Limited (HCCBPL) also known
as Coca Cola India (CCI). A survey was undertaken to ascertain
“Analysis of Sales and Account Receivable Process and Reconciliation”.
1. The purpose of this project is to ensure that sale of the unit’s

products are performed within policies and procedures of the
companies. The unit follows the indirect distribution system for
sales. The unit also follows distribution to key accounts in Jaipur city
from city depot.
2. The objective of the study was to know about the Distributors of

the company, how many of the Distributors are operational, how
many of the Distributors have the same balance in their books as in
the books of Coca Cola.
3. How many entries that are made in the books are being
approved and are being properly recorded in the record register?

ABOUT THE COMPANY
Every person who drinks a Coca-Cola enjoys a moment of refreshment
and shares an experience that millions of others have savored. All of
those individual experiences combined have created a worldwide
phenomenon – a truly global brand.
The Coca-Cola Company, nourishing the global community with the
world’s largest selling soft drink since 1886, returned to India in 1993
after a gap of 16 years giving a new thumbs-up to the Indian Soft Drink
Market. In the same year, the Company took over ownership of the
nation's top soft-drink brands and bottling network. No wonder, our
brands have assumed an iconic status in the minds of the consumers.
Coca-Cola serves in India some of the most recalled brands across the
world including names such as Coca-Cola, Diet Coke, Sprite, Fanta,
Thums Up, Limca, Maaza and Kinley (packaged drinking water).
Coca-Cola India is among the country’s top international investors,

having invested more than US$ 1 billion in India within a decade of its
presence and further pledged another US$ 100 million in 2003 for its
operations.
The Company has not only shaked up the Indian carbonated drinks
market, and given consumers the pleasure of world-class drinks to fill
up their hydration, refreshment & nutrition needs but has also been
instrumental in giving an exponential growth to job opportunities.
With virtually all the goods and services required to produce and
market Coca-Cola being made in India, the business system of the
Company directly employs approximately 6,000 people, and indirectly
creates employment for more than 125,000 people in related
industries through our vast procurement, supply and distribution
system.

On the distribution front, 10-tonne trucks, open-bay three-wheelers
that can navigate the narrow alleyways of Indian cities constantly keep
our brands available in every nook and corner of even the country’s
remotest areas.
Major operation of the company is manufacturing beverages, on the

other hand for the investment it is also a Bottling Investment Group
(BIG), which is divided into two parts:
• COBO – Company Owned Bottling Operation

• FOBO – Franchising Owned Bottling Operation
The vast Indian operations comprise 25 wholly-owned- company-owned

bottling operations and another 24 franchisee-owned bottling
operations. That apart, a network of 21 contract-packers also
manufactures a range of products for the Company.
The company is operating under the different brands they are Coca
Cola, Limca, Thumps Up, Sprite, Fanta, Maaza, Kinley Water & Kinley
Soda.
It also has different stock keeping units of these brands like 200ml,
300ml, 500ml, 600ml, 1ltr, 1.5ltr and 2ltr.It has recently launched
2.25ltr pet in all brands.
These brands are sold in two patterns:
• Glass bottle which is called RGB – Returnable Glass Bottle.

• Plastic bottle which is called PET – Polyethene Tetra Phalete

The company also provides the dealers with the Sales Generating
Assets (SGA) like coolers, refrigerators and fridge.
This main season time for the company is from March to August and
company makes its most of the revenues in this season, as per the
company in the month of March, April, May and June the company
crosses 70% of the sales of the soft drinks incurred by the company in
the complete year.
The business system of the Company in India directly employs

approximately 6,000 people, and indirectly creates employment for
many more in related industries through our vast procurement, supply
and distribution system.
The vast Indian operations comprise 25 company-owned bottling

operations and 24 franchisee-owned bottling operations. That apart, a
network of contract-packers also manufactures a range of products for
the Company. On the distribution front, 10-tonne trucks, open-bay
three-wheelers that can navigate the narrow alleyways of Indian cities,
ensure availability of our brands in every nook and corner of the
country.
The company-owned Bottling arm of the Indian Operations, Hindustan

Coca-Cola Beverages Private Limited is responsible for the
manufacture, sale and distribution of beverages across the country.
A career at Hindustan Coca-Cola Beverages Pvt. Ltd. is truly a one-of-a-

kind experience. Come taste life at Coca-Cola.

CHANNEL MANAGEMENT
The partner type relationship with bottlers Franchisee owned bottling

operation [FOBO], as well as company owned bottling operation
[COBO], network cover most of the company
It is this way in which COCA-COLA India strengthens its marketing that

gives it an edge. Every member of its sales team is meticulously taught
the merchandising & display skills that can leverage the reach of the
company's bottling network to achieve high visibility for the product.
COCA-COLA work under two types of bottling operations:-

a) COBO - company Owned Bottling Operations.
b) FOBO - Franchise Owned Bottling Operations.
COBO - in COBO the production as well as Selling is done by the

company itself.
Some of the COBO'S of the company are at:
Mumbai Chennai
Bangalore Calcutta
Ahemdabad U.P.Unit
FOBO- The concentrate is being sold to the franchise then

manufacturing & selling after wards in done by the franchise.
Leaving COBO's the FOBO's are in rest of the cities of India. Some of
then are in-
Delhi, Agra, Punjab, Bihar, Nagpur, Goa, Bhubneshwar Hyderabad.
DISTRIBUTION SYSTEM

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From warehouse the COCA-COLA products are distributed through
direct & indirect in INDIA
DIRECT ROUTE:-
Direct routes are those through which COCA-COLA products are
supplied by the company's route agents to the market by company
owned delivery vans.
INDIRECT ROUTE:-
Indirect routes are those in which COCA-COLA products are supplied to
the distributors appointed in different areas. The distributors then
distribute COCA COLA products to the market by their own tempo.
The total no. Of direct & indirect routes are more then 50 in Jaipur City.
FLOW OF STOCK
Market
Direct Route
Plan Warehouse
Indirect Route
Distributor----Market
Distribution: AT RAJASTHAN
Total market of Rajasthan is divided into 8 divisions namely; Jaipur,
Jodhpur, Udaipur, Alwar, Kota, Sikar, Sriganganagar, Ajmer.
MARKET DISTRIBUTION
COCA-COLA has been concentrating 0n fOUR Main types of markets:

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SMERGING MARKET
Like China & India, where there is low per capita income but are a
good potential for investment because of their large size.
LEADING MARKET
Markets where it is leading, maintenance & consolidation of position
are the key issues,
CRITICAL MASS - MARKET

Where Coca-Cola has maintained & defend its position against
competition.
LOW SHARE MARKET

Markets where COCA-COLA has a low share but where presence is
required.
COMPETITORS
Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola

in some localities. Around the world, some local brands do compete
with Coke. In South and Central America, Kola Real, known as Big Cola
in Mexico, is a fast growing competitor to Coca-Cola. On the French
island of Corsica, Corsica Cola, made by brewers of the local Pietra

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beer, is a growing competitor to Coca-Cola. In the French region of
Bretagne, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola.
However, The Coca-Cola Company purchased the brand in 1999. In
Sweden, Julmust outsells Coca-Cola during the Christmas season. In
Scotland, the locally-produced Irn-Bru was more popular than Coca-
Cola until 2005, when Coca-Cola and Diet Coke began to outpace its
sales. In India, Coca-Cola ranked third behind the leader, Pepsi-Cola,
and local drink Thums Up.

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However, The Coca-Cola Company purchased Thums Up in 1993. As of
2004, Coca-Cola held a 60.9% market-share in India. Tropicola, a
domestic drink, is served in Cuba instead of Coca-Cola, in which there
exists a United States embargo. Mecca Cola and Qibla Cola, in the
Middle East, is a competitor to Coca-Cola. In Turkey, Cola Turka is a
major competitor to Coca-Cola.
In Iran and also many countries of Middle East, Zam Zam Cola and
Parsi Cola are major competitors to Coca-Cola. In some parts of China,
Future cola can be bought. In Slovenia, the locally-produced Cockta is a
major competitor to Coca-Cola, as is the inexpensive Mercator Cola,
which is sold only in the country's biggest supermarket chain,
Mercator. In Madagascar, Classiko Cola made by Tiko Group the largest
manufactured company in the country is a serious competitor to Coca-
Cola in many regions. Finally, in the UK Coca-Cola stated that Pepsi
wasn't its main rivalry, in fact it turned out to be Robinsons drinks.

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COKE STRATEGY
An 1890s advertisement showing model Hilda Clark in formal 19th

century attire. The ad is entitled Drink Coca-Cola 5¢.Coca-Cola's
advertising has had a significant impact on American culture, and is
frequently credited with the "invention" of the modern image of Santa
Claus as an old man in red-and-white garments; however, while the
company did in fact start promoting this image in the 1930s in its
winter advertising campaigns, it was already common before that. In
fact, Coca-Cola was not even the first soft drink company to utilize the
modern image Santa Claus in its advertising – White Rock Beverages
used Santa in advertisements for its ginger ale in 1923 after first using
him to sell mineral water in 1915.
Before Santa Claus, however, Coca-Cola relied on images of smartly-

dressed young women to sell its beverages. Coca-Cola's first such
advertisement appeared in 1895 and featured a young Bostonian
actress named Hilda Clark as its spokesperson.
In the 1970s, a song from a Coca-Cola commercial called "I'd Like to
Teach the World to Sing", produced by Billy Davis, became a popular
hit single.
Coca-Cola has a policy of avoiding using children younger than the age
of 12 in any of its advertising. This decision was made as a result of a
lawsuit from the beginning of the 20th century that alleged that Coke's
caffeine content was dangerous to children. However, in recent times,
this has not stopped the company from targeting young consumers.

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Coke's advertising has been rather pervasive, as one of Woodruff's
stated goals was to ensure that everyone on Earth drank Coca-Cola as
their preferred beverage. Advertising for Coke is now almost
ubiquitous, especially in southern areas of North America, such as
Atlanta, where Coke was born.
Some of the memorable Coca-Cola television commercials between

1960 through 1986, were written and produced by former Atlanta radio
veteran Don Naylor during his career as a producer for the McCann
Erickson advertising agency. Many of these early television
commercials for Coca-Cola featured movie stars, sports heroes, and
popular singers of the day.
During the 1980s, Pepsi-Cola ran a series of television advertisements

showing people participating in taste tests essentially demonstrating
that: "Fifty percent of the participants who said they preferred Coke
actually chose the Pepsi". Statisticians were quick to point out the
problematic nature of a 50/50 result; that most likely all this really
showed was that in blind tests, most people simply cannot tell the
difference between Pepsi and Coke. Coca-Cola ran ads to combat
Pepsi's ads in an incident sometimes referred to as the cola wars; one
of Coke's ads compared the so-called Pepsi challenge to two
chimpanzees deciding which tennis ball was furrier. Thereafter, Coca-
Cola regained its leadership in the market.
Selena was a spokesperson for Coca-Cola from 1989 till the time of her
death. She filmed three commercials for the company. In 1994 to
commemorate her 5 years with the company, Coca-Cola issued special
Selena coke bottles.

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In an attempt to broaden its portfolio, Coca-Cola purchased Columbia
Pictures in 1982. Columbia provided subtle publicity through Coke
product placements in many of its films while under Coke's ownership.
However, after a few early successes, Columbia began to under-
perform, and was dropped by the company in 1989.
Coca-Cola has gone through a number of different advertising slogans
in its long history, including "The pause that refreshes", "I'd like to buy
the world a Coke", and "Coke is it".
In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty

campaign where consumers earn virtual "points" by entering codes
from special marked packages of Coca-Cola products into a website.
These points can in turn be redeemed for various prizes or
sweepstakes entries.

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SPONSORSHIP OF SPORTING EVENTS
Coca-Cola was the first-ever sponsor of the Olympic games, at the

1928 games in Amsterdam and has been an Olympics sponsor ever
since. This corporate sponsorship included the 1996 Summer Olympics
hosted in Atlanta, which allowed Coca-Cola to spotlight its hometown.
Since 1978 Coca-Cola has sponsored each FIFA World Cup and other
competitions organized by FIFA. In fact, one of the FIFA tournament
trophy: FIFA World Youth Championship from Tunisia in 1977 to
Malaysia in 1997 was called "FIFA - Coca Cola Cup". In addition, Coca-
Cola sponsors the annual Coca-Cola 600 for the NASCAR Nextel Cup
auto racing series at Lowe's Motor Speedway in Charlotte, North
Carolina. Coca-Cola has a long history of sports marketing
relationships, which over the years have included Major League
Baseball, the National Football League, National Basketball Association
and the National Hockey League, as well as with many teams within
those leagues. Coca-Cola is the official soft drink of the Georgia
Bulldogs.
In England, Coca-Cola is the main sponsor of The Football League, a

name given to the three professional divisions below the Premier
League in football (soccer). It is also responsible for the renaming of
these divisions- until the advent of Coca-Cola sponsorship; they were
referred to as Divisions One, Two and Three. Since 2004, the divisions
have been known as The Championship (equiv. of Division 1), League
One (equiv. of Div. 2) and League 2 (equiv. of Division 3). This
renaming has caused unrest amongst some fans who see it as farcical
that the third tier of English Football is now called "League One."

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In 2005 Coca-cola launched a competition for the 722 clubs of the
football league - it was called "Win a Player". This allowed fans to place
1 vote per day for their beloved club, with 1 entry being chose at
random earning £250,000 for the club. This was repeated in 2006.
The "Win A Player" competition was very controversial, as at the end of

the 2 competitions, Leeds United AFC had the most votes by more than
double, yet they did not win any money to spend on a new player for
the club. In 2007 the competition changed to "Buy a Player". This
competition allowed fans to buy a bottle of Coca-Cola Zero or Coca-
Cola and submit the code on the wrapper on the Coca-Cola wesite
{www.coca-colafootball.co.uk}. This code could then earn anything
from 50p to £100,000 for a club of their choice. This competition was
favoured over the old "Win A Player" competition as it allowed all clubs
to win some money, instead of all the money going to one winning
club.

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CRITICISM OF COCA COLA
Coca cola is a very huge company therefore the criticism is also very
huge. The Coca-Cola Company has been criticized many times and for
different reasons. The Coca-Cola Company has been criticized for its
business practices as well as the alleged adverse health effects of its
flagship product. A common criticism of Coke based on its allegedly
toxic acidity levels has been found to be baseless by most researchers;
lawsuits based on these criticisms have been dismissed by several
American courts for this reason.
Most nutritionists advise that Coca-Cola and other soft drinks can be
harmful if consumed excessively, particularly to young children whose
soft drink consumption competes with, rather than complements, a
balanced diet. Studies have shown that regular soft drink users have a
lower intake of calcium (which can contribute to osteoporosis),
magnesium, ascorbic acid, riboflavin, and vitamin A. The drink has also
aroused criticism for its use of caffeine, due to the possibility of
physical dependence.
Although numerous court cases have been filed against The Coca-Cola
Company since the 1920s, alleging that the acidity of the drink is
dangerous, no evidence corroborating this claim has been found.
Under normal conditions, scientific evidence indicates Coca-Cola's
acidity causes no immediate harm.
There is also some concern regarding the usage of high fructose corn
syrup in the production of Coca-Cola. Since 1985 in the U.S., Coke has
been made with high fructose corn syrup, instead of sugar glucose or
fructose, to reduce costs. This has come under criticism because of
concerns that the corn used to produce corn syrup may come from
genetically altered plants. Some nutritionists also caution against

0
consumption of high fructose corn syrup because of possible links to
obesity and diabetes.
In India, there exists a major controversy concerning pesticides and

other harmful chemicals in bottled products including Coca-Cola. In
2003, the Centre for Science and Environment (CSE), a non-
governmental organization in New Delhi, said aerated waters produced
by soft drinks manufacturers in India, including multinational giants
PepsiCo and Coca-Cola, contained toxins including lindane, DDT,
malathion and chlorpyrifos — pesticides that can contribute to cancer
and a breakdown of the immune system. Tested products included
Coke, Pepsi, and several other soft drinks, many produced by The
Coca-Cola Company. CSE found that the Indian produced Pepsi's soft
drink products had 36 times the level of pesticide residues permitted
under European Union regulations; Coca-Cola's soft drink was found to
have 30 times the permitted amount. CSE said it had tested the same
products sold in the US and found no such residues.
After the pesticide allegations were made in 2003, Coca-Cola sales

declined by 15%. In 2004, an Indian parliamentary committee backed
up CSE's findings, and a government-appointed committee was tasked
with developing the world's first pesticide standards for soft drinks.
The Coca-Cola Company has responded that its plants filter water to
remove potential contaminants and that its products are tested for
pesticides and must meet minimum health standards before they are
distributed. In the Indian state of Kerala, sale and production of Coca-
Cola, along with other soft drinks, was initially banned, before the High
Court in Kerala overturned the ban ruling that only the federal
government can ban food products.

1
In 2006, the United States Food and Drug Administration responded to
reports that the carcinogen benzene was present in unhealthy levels in
certain soft drinks by conducting a survey of more than 100 soft drinks
and other beverages. Based on this limited survey, the FDA stated that
it "believes that the results indicate that benzene levels are not a
safety concern for consumers. Coca-Cola advertising in the High Atlas
mountains (Morocco).
The Coca-Cola drink has a high degree of identification with the United
States itself, being considered by some an "American Brand" or to a
small extent as an item representing America. The identification with
the spread of American culture has led to the pun "Coca-Colanization".
The drink is also often a metonym for the Coca-Cola Company.
There are some consumer boycotts of Coca-Cola in Arab countries due

to Coke's early investment in Israel during the Arab League boycott of
Israel (this contrasts sharply to Pepsi which stayed out of Israel).[56]
Mecca Cola has been successful in the Middle East as an alternative.
The art group monochrom as part of their 2005 "Experience The

Experience" tour created a "Brick Of Coke". To do this, they put several
gallons of Coca-Cola into a pot and boiled it down until the residue left
behind could be molded into a brick.

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MISSION OF COCA-COLA
 TO REFRESH THE WORLD-IN MIND, BODY, AND SPIRIT.
 TO INSPIRE MOMENTS OF OPTIMISM THROUGH OUR BRAND AND
ACTION.
 TO CREATE VALUE AND MAKE DIFFERENCE-EVERYWHERE WE
ENGAGE.
VISION OF COCA-COLA
Profit : Maximize the return of shareholder.
People : Establish a great place to work where people are
inspired to the best they can do.
Portfolio : bringing to the world a portfolio of beverage brands
that anticipate and safety people’s desire and need.
Partners : Nurturing a wining network of partners and building a
mutual loyalty.
Planet : Being a responsible global citizen that makes a
difference
VALUE OF COCA-COLA
• Leadership : "The courage to shape a better future"

• Passion : "Committed in heart and mind"
• Integrity : "Be real"
• Accountability : "If it is to be, it’s up to me"
• Collaboration : "Leverage collective genius"
• Innovation : "Seek, imagine, create, delight"
• Quality : "What we do, we do well"
COCA-COLA- A BRIEF HISTORY

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DR.JHON STITH PEMBERTON
The product that has given the world its best-known taste was born in
Atlanta, Georgia, on May 8, 1886. Dr. John Stith Pemberton, a local
pharmacist, produced the syrup for Coca-Cola®, and carried a jug of the
new product down the street to Jacobs' Pharmacy, where it was sampled,
pronounced "excellent" and placed on sale for five cents a glass as a soda
fountain drink.
Carbonated water was teamed with the new syrup to produce a drink
that was at once "Delicious and Refreshing," .Dr. Pemberton's partner
and bookkeeper, Frank M. Robinson, suggested the name and penned
the now famous trademark "Coca-Cola" in his unique script. The first
newspaper ad for Coca-Cola soon appeared in The Atlanta Journal,
inviting thirsty citizens to try "the new and popular soda fountain
drink." Hand-painted oilcloth signs reading "Coca-Cola" appeared on

4
store awnings, with the suggestion "Drink" added to inform passersby
that the new beverage was for soda fountain refreshment.
Dr. Pemberton never realized the potential of the beverage he created.

He gradually sold portions of his business to various partners and, just
prior to his death in 1888, sold his remaining interest in Coca-Cola to
Asa G. Candler. An Atlantan with great business acumen, Mr. Candler
proceeded to buy additional rights and acquire complete control.
On May 1, 1889, Asa Candler published a full-page advertisement in

The Atlanta Journal, proclaiming his wholesale and retail drug business
as "sole proprietors of Coca-Cola ... Delicious. Refreshing. Exhilarating.
Invigorating." Sole ownership, which Mr. Candler did not actually
achieve until 1891, cost a total of $2,300.
By 1892, Mr. Candler's flair for merchandising had boosted sales of

Coca-Cola syrup nearly tenfold. He soon liquidated his pharmaceutical
business and focused his full attention on the soft drink. With his
brother, John S. Candler, John Pemberton's former partner Frank
Robinson and two other associates, Mr. Candler formed a Georgia
corporation named The Coca-Cola Company. Initial capitalization was
$100,000.
The trademark "Coca-Cola," used in the marketplace since 1886, was

registered in the United States Patent Office on January 31, 1893.
(Registration has been renewed periodically.) That same year the first
dividend was paid; at $20 per share, it amounted to 20 percent of the
book value of a share of stock.
A firm believer in advertising, Mr. Candler expanded on Dr.

Pemberton's marketing efforts, distributing thousands of coupons for a

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complimentary glass of Coca-Cola. He promoted the product
incessantly, distributing souvenir fans, calendars, clocks, urns and
countless novelties, all depicting the trademark. The business
continued to grow, and in 1894, the first syrup manufacturing plant
outside Atlanta was opened in Dallas, Texas.
While Mr. Candler's efforts focused on boosting soda fountain sales,

another concept were being developed that would spread the
enjoyment of Coca-Cola worldwide. In 1894, in Vicksburg, Mississippi,
Joseph A. Biedenharn was so impressed by the growing demand for
Coca-Cola at his soda fountain that he installed bottling machinery in
the rear of his store and began to sell cases of Coca-Cola to farms and
lumber camps up and down the Mississippi River. He was the first
bottler of Coca-Cola.
Large-scale bottling was made possible in 1899, when Benjamin F.

Thomas and Joseph B. Whitehead of Chattanooga, Tennessee, secured
from Mr. Candler the exclusive rights to bottle and sell Coca-Cola in
practically the entire United States. With contract in hand, they joined
another Chattanoogan, John T. Lupton, and began to develop what is
today the worldwide Coca-Cola bottling system.
A variety of straight-sided containers was used through 1915, but as

soft-drink competition intensified, so did imitation. Coca-Cola deserved
a distinctive package, and in 1916, the bottlers approved the unique
contour bottle designed by the Root Glass Company of Terre Haute,
Indiana.
The now-familiar shape was granted registration as a trademark by the

U.S. Patent Office in 1977, an honor accorded only a handful of other

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packages. The bottle thus joined the trademarks "Coca-Cola,"
registered in 1893, and "Coke®," registered in 1945.
In 1919, the Candler interests sold The Coca-Cola Company to Atlanta

banker Ernest Woodruff and an investor group for $25 million. The
business was reincorporated as a Delaware corporation, and 500,000
shares of its common stock were sold publicly for $40 per share.
The Company pioneered the innovative six-bottle carton in the early

1920s, for example, making it easier for the consumer to take Coca-
Cola home. The simple cardboard carton, described as "a home
package with a handle of invitation," became one of the industry's
most powerful merchandising tools. By the end of 1928, Coca-Cola
sales in bottles had for the first time exceeded fountain sales.
During 1886, Coca Cola's first year, sales averaged a modest nine
drinks per day. In 2004, over 1.3 billion beverage servings are sold
each day. Although Coca-Cola® was first created in the United States,
it quickly became popular wherever it went. Today, they produce
nearly 400 brands in over 200 countries. More than 70 percent of their
income comes from outside the U.S., making The Coca-Cola Company
a truly global company.

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LANDMARKS ACHIEVMENT
1893-94 Coca-cola registered at the U.S patent office

1899 Bottled and sold by Mississippi merchant.
1900 Coca-cola bottling plant came up in Chattanooga
Tenesssive and Atlanta
1919 It was acquired by Robert woodruff.
1920 There came into existence around 1000 bottling plant
1960 A new aerated drink fanta appeared on the shelves Of

market.
1963 A one- calorie cola tab was launched.
1966 A low calorie citrus drink was launched.
THE INDIAN SOFT DRINK MARKET
The Indian carbonated soft drink market is estimated at Rs 2000 cores

by value for the remaining part. In India swigging a carbonated
beverage is still considered. A taste, virtually a luxury. Indian’s per
capital consumption of 3 serving is rock bottom. Less even then our
neighbors Pakistan and Bangladesh. Where it is four times as much.
In U.S the per capital consumption is 700bottels/year the soft drink
industry logged in a20%growth in year 1995 with the estimated sales
of 140 million cases (24bottel in each case) up from 125 million case in

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the previous year. There are 310000 retailers stoking soft drink in
India.
Coke is the leading in India soft drink market with Pepsi at no. 2
position.
TRUST THE COKE
The magic of coca cola doesn’t come simply from our product and
brand . it also comes from the relationship innovation thanking and
diversity of people who contribute to the energy and success of coca-
cola every day . reaching out , extending boundaries and finding
common brands are part of the real magic of coca- cola.
That’s as true today as it ever has been .our energy comes from
relating to people and truly understanding their life style and taste.
What drives us forward is our desire to ensure that , all around the
global , coca cola company and its partners provide people what they
want to drink on any occasion , any time , day , at any point their lives.
“In India, the visibility is so high that your immediately notice their
absence. This is perhaps why you find people actually including coals
among top 10 trusted brands. Colas are getting integrated into
people’s lives and getting into daily occasions in their lives,” says
C.E.O. of coca-cola company. But it is not the part about colas in
general that is warming the cockles of his heart. It is the domination of
coke and Thums-up in the ranking over Pepsi. An impendent ranking
puts coke at 8 and Thums-up at 4, not only among the top ten trusted
brands but also higher on the scale than Pepsi, at 9 is worth a lot to
coke which has been looking for ac respite for sometime.

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THE INDIAN COLA SCENARIO
The coke company entered in India in the early 1950’s. It set-up four
bottling plants at Mumbai, Kolkota, Kanpur and Delhi.
In 1950’s as their negligible companies in India market therefore coke

did not face much competition and they were accepted in Indian
market more easily. All age groups accepted the brand. The full credit
goes to coke for marketing soft drink popular in India. By the end of
1977, coca-cola had captured more than 45% of market share of India.
Then coke left in India following Public disputes over share holding
structure and import permit as per FERA regulations the company was
registered to Indian or close operation came to an end in July 1997.
“Focus, focus and stream-roller ahead” with this classic coke speak,
coca-cola re-entered into Indian market after 17 years in 1993, by
striking a $ 40 million deal with parle. Coke launched his first plant in
hathras near Agra on Oct 26. a strategic alliance with Parle exports
gave the company existent ownership of the nation top soft drink
brand like Thums-up limca, Gold-spot and Maaza Access to parle’s
extensive 52 plants bottling network and abase for the rapit
introduction of the company’s international brands. This network
independently owned bottles and is India’s largest soft drink bottling
system.

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INVESTMENTS
Coca-cola has set up a fully integrated operation in India-

manufacturing research & development, marketing, distribution and
franchise.. it has set up a holding company to accelerate growth
through new initiative and joint ventures. Coca-cola is fully committed
to India and the national objective of, development of technology and
accelerating exports and employment. Since its re entry in 1993 it has
invested more than US $ 1 billion in India. Coca-cola is one of the top
international investers in India.
In 2003,coca-cola India pledge to invest a further US$ 100 million in its

operation.
EMPLOYMENT

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Coca-cola businesses in India are highly employment oriented. The
company currently provides direct & indirect employment to nearly
52000 persons in its entire management & work force is Indian. Its
beverage business is very distribution intensive. Coca-cola services
every outlet at least 2-3 times a week, in summer many outlets require
to be serviced both in the morning & in the evening. It currently supply
goods directly to over3, 50,000 outlets in India & every year coca-cola
adds an additional 8,00,000-10,00,000 outlets, 5,000-7,000 being
totally new outlets, who start a shop.
With its products. A company salesman along with two helpers an at

best service 40 outlets per day i.e. for every 100 outlets that coca-cola
service, it needs a three people team. In addition, coca-cola has 19
company owned factory throughout the country & 21 factories owned
by its Indian Bottling partners. It has put up 8 new green field sites, all
of them in backward region of different states. Similarly its bottling
partners have put up in the last three years 8 new factories coca-cola
also bottling partners have put up in the last three years 8 new
factories. Coca-cola also supplies nearly 5,000 fountain machines, free
of cost to shopkeepers who sell its beverages in cups & empty two
people from morning to evening to sell these cups. Hence it calculates
very clearly very clearly the entire direct & indirect workforce in its
business. In addition it provides employment to-
a) Small artisans, painters etc. Engaged in market place activities,
such as painting shop boards, hoardings, banners, wall paintings
& other forms of signage.
b) Those engaged in manufacture/ supply of raw materials/
packaging material, display material etc. E.g. sugar, glass bottle,
plastic crates, papers cups, visi coolers, refrigerators, ice cheats,
Co2 etc.
EXPORTS

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Exports are a major business for COCA-COLA in India. COCA-COLA
exports have grown from 9 crore in 1991-92 to over Rs. 200 crores in
1997-98. Coke’s three-point strategy for exports is-
a) Global sourcing of raw materials/ packaging materials from India

for its various companies & bottlers.
b) Exports of value added branded food products.
c) Extensive development of agriculture of fruits & vegetables.
COCA-COLA is a recognized trading House under the exports- imports

policy. The exports baskets consist of-
High pressure mounding grade resin through a 100% EOU with Rs. 75
crores investment & annual worth Rs. 100 crores.
c) Beverages concentrate.
d) High quality returnable bottles, with technology provided by
COCA-COLA R& D.
e) High technology non- returnable bottles.
f) High quality plastic crates.
g) Promotional material such as footballs for the COCA-COLA
system worldwide.
h) Paper boxes for restaurant chains.
COCA-COLA BELIEVES IN ATTAINING LOCAL

GROWTH BY:

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(A) Building infrastructure ahead- COCA-COLA believes in building a
suitable bottling capacity & considerable market equipments.
(B) Focus on execution excellence- COCA-COLA focuses on capacity

building and maintaining adequate system for froth.
(C) Strengthening bottler network COCA-COLA believes in

strengthening the bottlers network by giving them adequate training,
guidance & providing the partnership like relationship. COCA-COLA
believes in selecting best practice bottlers.
(D) Research & penetration in rural & semi rural markets.
(E) Conducting consumer focused marketing program, which includes

new promotion schemes, discounts, events, packaging etc.
PRODUCT OF COCA-COLA

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The world's favorite drink. The world's most valuable brand. The
most recognizable word across the world after OK .Coca-Cola has a
truly remarkable heritage. From a humble beginning in 1886, it is now
the flagship brand of the largest manufacturer, marketer and
distributor of non-alcoholic beverages in the world.
In India, Coca-Cola was the leading soft-drink till 1977 when govt.
policies necessitated its departure. Coca-Cola made its return to the
country in 1993 and made significant investments to ensure that the
beverage is available to more and more people, even in the remote
and inaccessible parts of the nation.
Coca-Cola returned to India in 1993 and over the past ten years has
captured the imagination of the nation, building strong associations
with cricket, the thriving cinema industry, music etc. Coca-Cola has
been very strongly associated with cricket, sponsoring the World Cup in
1996 and various other tournaments, including the Coca-Cola Cup in
Sharjah in the late nineties. Coca-Cola's advertising campaigns Jo
Chaho Ho Jaye and Life ho to Aisi were very popular and had
entered the youth's vocabulary. In 2002, Coca-Cola launched the
campaign "Thanda Matlab Coca-Cola" which sky-rocketed the brand
to make it India's favourite soft-drink brand. In 2003, Coke was
available for just Rs. 5 across the country and this pricing initiative
togetherwith improved distribution ensured that all brands in the
portfolio grew leaps and bounds.
Coca-Cola had signed on various celebrities including movie stars such

as Karishma Kapoor, cricketers such as Srinath, Sourav Ganguly,

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southern celebrities like Vijay in the past and today, its brand
ambassadors are Aamir Khan and Hrithik Roshan.
SIZ E O F C O C A-CO LA
Glass PET Can Fountain

500 ml,,
200 ml, 300 ml 2 L, 2.25 L, 330 ml Various Sizes
500 ml + 100 ml
Strong Cola Taste, Exciting Personality

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Thums Up is a leading carbonated soft drink and most trusted brand in
India. Originally introduced in 1977, Thums Up was acquired by The
Coca-Cola Company in 1993.
Thums Up is known for its strong, fizzy taste and its confident,
mature and uniquely masculine attitude. This brand clearly seeks to
separate the men from the boys.
SIZE OF THUMS-UP
500 ml,
200 ml, 300 ml, 2 L, 2.25 L, 330 ml Various Sizes
500 ml + 100 ml
lime n' lemoni Limca , the drink that can cast

a tangy refreshing spell on anyone, anywhere.
Born in 1971, Limca has been the original thirst
choice, of millions of consumers for over 3

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decades.
The brand has been displaying healthy volume growths year on year
and Limca continues to be the leading flavour soft drink in the country.
The success formula? The sharp fizz and lemoni bite combined with the
single minded positioning of the brand as the ultimate refresher has
continuously strengthened the brand franchise. Limca energizes,
refreshes and transforms. Dive into the zingy refreshment of Limca and
walk away a new person ..
SIZE OF LIMCA

500 ml,
200 ml, 300 ml 2 L, 2.25 L, 330 ml Various Sizes
500 ml + 100 ml
Worldwide Sprite is ranked as the No. 4 soft drink & is sold in more
than 190 countries. In India, Sprite was launched in year 1999 & today.
it has grown to be one of the fastest growing soft drinks, leading the
Clear lime category. Today Sprite is perceived as a youth icon. Why?
With a strong appeal to the youth, Sprite has stood for a
straightforward and honest attitude. Its clear crisp refers hingtaste

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encourages the today's youth to trust their instincts, influence them to
be true to who they are and to obey their thirst.
SIZE OF SPRITE
GLASS PET Can Fountain

500 ml,
2 L, 2.25 L,
200 ml, 300 ml 330 ml Various Sizes
500 ml + 100
ml
Internationally, Fanta - The 'orange' drink of The Coca-Cola Company,

is seen as one of the favorite drinks since 1940's. Fanta entered the
Indian market in the year 1993.

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Over the years Fanta has occupied a strong market place and is
identified as "The Fun Catalyst".
Perceived as a fun youth brand, Fanta stands for its vibrant color,
tempting taste and tingling bubbles that not just uplifts feelings but
also helps free spirit thus encouraging one to indulge in the moment.
This positive imagery is associated with happy, cheerful and special
times with friends.
SIZE OF FANTA

500 ml,
200 ml, 300 2 L, 2.25 L,
330 ml Various Sizes
ml, 500 ml +
100 ml
Maaza was launched in 1976. Here was a drink that offered the same
real taste of fruit juices and was available throughout the year. In
1993, Maaza was acquired by Coca-Cola India. Maaza currently
dominates the fruit drink category.

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Over the years, brand Maaza has become synonymous with Mango.
This has been the result of such successful campaigns like "Taaza
Mango,Maaza Mango" and "Botal mein Aam, Maaza hain Naam".
Consumers regard Maaza as wholesome, natural, fun drink, which
delivers the real experience of fruit.
The current advertising of Maaza positions it as an enabler of fun

friendship moments between moms and kids as moms trust the brand
and the kids love its taste. The campaign builds on the existing equity
of the brand and delivers a relevant emotional benefit to the moms
rightly captured in the tagline "Yaari Dosti Taaza Maaza"
SIZE OF MAAZA
Glass Tetrapak PET Fountain
200 ml, 125 ml,
1200 ml Various Sizes
250 ml 200 ml
In the company's journey towards

the vision 'leading the beverage
revolution in India', now even
Garam matlab Coca- Cola…. A

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hot new launch from Coca-Cola India.
Georgia, quality tea and coffee served from state of the art vending
machines is positioned to tap into the nations biggest beverage
category.
Georgia, which promises a great tasting, consistent, hygienic and
affordable cuppa is available in a range of sizzling flavours, adrak,

elaichi, masala and plain tea cappuccino, mochaccino and regular
coffee.
Georgia is currently in the roll out stage after a successful launch in

Delhi & Kolkata. Georgia aims to become the consumers preferred
choice of hot beverage when he is on the go , the brand is well on
course to achieving its vision.
While Georgia is a mass market offering, Georgia Gold is the premium

brand which caters to the connoisseur. Made from freshly roasted and
ground coffee beans, Georgia Gold is delicious tasting aroma with the
tantalizing aroma of fresh coffee. Currently available exclusively at
McDonalds outlets across the country Georgia Gold has driven coffee
sales through the roof. The success of hot beverages from Georgia
Gold has resulted in extension into the cold category, with the
introduction of Ice Tea and Cold Coffe

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The history of the Minute Maid brand goes as
far back as 1945 when the Florida Foods
Corporation developed orange juice powder.
The company developed a process that
eliminated 80 percent of the water in orange
juice, forming a frozen concentrate that when
reconstituted created orange juice. They
branded it Minute Maid, a name connoting the
convenience and the ease of preparation (In a
minute). Minute Maid thus moved from a powdered concentrate to the
first ever orange juice from concentrate.
Minute Maid- One of the world's largest juice and juice drink
brands
Over the years, through innovations and unmatched consumer

experience provided in over 60 countries, Minute Maid brand has
clearly become one of the world's largest juice and juice drink brands.
The launch of Minute Maid Pulpy Orange in India (starting with the
south of the country) is aimed to further extend the leadership of Coca-
Cola in India in the juice drink category.
Available in two PET pack sizes
400 ml and 1 liters and 1.25 liters.

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Water, a thirst quencher that refreshes, a life giving
force that washes all the toxins away. A ritual purifier
that cleanses, purifies, transforms. Water, the most
basic need of life, the very sustenance of life, a
celebration of life itself.
The importance of water can never be understated. Particularly in a

nation such as India where water governs the lives of the millions, be it
as part of everyday rituals or as the monsoon which gives life to the
sub-continent.
Kinley water understands the importance and value of this life giving
force. Kinley water thus promises water that is as pure as it is meant to
be. Water you can trust to be truly safe and pure.
Kinley water comes with the assurance of safety from the Coca-Cola
Company. That is why we introduced Kinley with reverse-osmosis along
with the latest technology to ensure the purity of our product. That's
why we go through rigorous testing procedures at each and every
location where Kinley is produced.

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Because we believe that right to pure, safe drinking water is
fundamental. A universal need, that cannot be left to chance.
INGREDIENTS
SWEETENER
Team of professional, work on selecting, auditing, sampling, testing

and then authorizing the sugar supplier and the list of such authorized
with approved sugar lots and long with the certificate of analysis are
sent across to all the bottling unit for procurement.
SECRET FORMULLA
Created in a special concentrate plants, its delivered, held and used

under strict control to maintain its integrity and security. Each unit of
concentrate is specially identifiable to allow is history of each
components to be researched at any stage of production , storage or
use.
CO2
When dilivered to plant,corbon dioxide comes in cylinders for easy

delivery and storage, but what is it? In essence, it is a colourless and
odorless gas that provides the fizz for beverages, but it also a by
product of our breathing and used by plants and trees to produce
oxygen.

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WATER
Water is a key element in all beverages, so its quality so critical. And

public water quality varies around the world. Each plant further treats
the water it uses. This means water is added to any beverage, its
rigorously filtered and cleansed.
MATERIAL
There are some other material like bottles, cans, labels and packaging
are also delivered. Coca-cola plants in India are fully refillable bottles
in the production process, they are delivered to plant, they are
carefully ensured that they meet out exacting standard then they have
been move on to washed
MANUFACTURING PROCESS

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At The Coca-Cola Company, through our globally accepted and
validated manufacturing processes and Quality Management Systems,
ensure that their manufacturing facilities are equipped to provide the
consumer with the highest possible quality beverage each time. Let us
now take you through the processes and Quality Assurance Programs
followed by our world-class manufacturing facilities in India.
Testing Source Water for Plant Site Selection
Even before the plant is constructed, the site is selected based on the
availability of source water meeting the potability quality standards. At
all our carbonated and non-carbonated soft drink manufacturing
locations, the source water is tested for all requirements of potable
drinking water. Independent third party accredited laboratories always
conduct the analysis. The source water is then properly protected and
re-tested periodically to ensure conformance to potability standards.

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The water is then drawn through sealed pipelines into the storage
tanks in secured water treatment areas of the manufacturing plant.
Water Treatment - The Chemistry Of Purity
(1) The first step in the manufacturing of soft drinks is the

disinfections of water using the globally approved procedure of
chlorination. This treatment ensures the destruction of micro-
organisms including pathogens and oxidation of heavy metal ions and
organic impurities.
(2) The second step is the filtration at the molecular level, which is
achieved either by coagulation/flocculation or reverse osmosis.
Contaminants commonly removed by this process include:
- Dirt, clay and any other suspended matter in the water.
- Microbial matter (including bacteria, yeast, moulds, virus,
protozoa).
- Heavy metals and compounds which may cause an off-taste.
When coagulation/flocculation is used, colloidal materials and
suspended particles are removed by settling plus enhanced filtration
through multi-media. If needed, alkalinity reduction may also be
achieved by lime softening or ion exchange filters.
(3) The third step to stop potential contaminants is water purification

using granular activated carbon filters. The granular
activated carbon, with its large and porous surface area, ensures
effective removal of trace levels of organic compounds (including
pesticides and herbicides), colour, off-taste and odour-causing
compounds using the principle of absorption.
(4) The last step is polishing filtration, which is passing water through
high efficiency 5-micron filters to ensure every drop of treated water is
free from any activated carbon fines and is safe for use in beverages.

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The Purity of Sugar Is Crystal Clear
Similar to the stringent norms used for water, we buy high-grade sugar
from authorized sugar mills in India and this is treated with a globally
acclaimed carbon treatment which removes all impurities and is then
used for the preparation of purified sugar syrup. This sugar syrup is
then blended with the soft drink concentrate..
Carbon Dioxide Meeting International Purity

Standards
Carbon-dioxide from authorized suppliers meeting international purity
standards is procured, which goes through stringent quality control
checks before being used in the beverage process. The three
ingredients of syrup, treated water and carbon-dioxide are blended as
per The Coca-Cola Company's specifications.
The Automated Bottling Process
The glass bottles returned from the market

are thoroughly cleaned and sanitized with specially formulated
cleaning agents at high temperature that use sophisticated state-of-
the-art Bottle Washers or Bottle Rinsers(in case of PET). These bottles
are then transported to the filler using a fully automated conveyor
system after a thorough visual inspection. The beverage is then filled
into glass containers or virgin food grade PET bottles using a high-
speed automated filling machine. The entire filling operation is fully
automated and untouched by human hands.

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The bottles are finally capped/crowned, date coded and packed into
crates/cartons to make them available to our consumers.
The complete manufacturing process has a well defined and structured

Quality Control and Assurance Program.
All the manufacturing facilities employ qualified, experienced and

trained professionals for manufacturing and testing of our products.
All the bottling facilities follow the Good Manufacturing Practices

requirements as applicable to the food industry. All manufacturing
equipment fulfil the stringent requirements of GMP and sanitary
design.
The entire quality management system of each plant is documented,

managed and continually improved through a world-wide accepted
system of TCCQS (The Coca-Cola Quality System).
Internal & External Audit Monitor Compliance

Clauses
The Company also has a strong internal audit system to monitor

compliance to international and local standards. The manufacturing
facilities also get audited by accredited external audit agencies against
quality management standards.
This internal checks and balances system works virtually in every
aspect of our business and gives us the confidence to reassure our
promise to consumers every day.
At The Coca-Cola Company, we are committed to delivering high

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quality products to our customers and consumers throughout the
globe. In each and every sip.
VARIABLES
Needs for quench thirst, expressed as a demand for a chilled product,

could be well satisfied by any other soft drink available. It is only then
that the interaction. Between the customer & the salesmen bring fruit
by pushing the product to the consumer. Some of the other essential
variables are:
• Ensuring range reach & availability
• Ensuring the visibility of the product.
• Ensuring the availability of the chilled product.
COCA-COLA always focuses on these variables while carrying on its

routine beverages services. This is the reason for COCA-COLA
increasing share in the world market, now a market leader in beverage
industry and a global brand.

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COCA COLA OFFICE AT KALADERA AND JAIPUR
Plant of the company is located at Kaladera and the city office is in
Jaipur from where all the other operation are being carried out like
marketing, distribution, etc. The production is being carried out at the
plant, here all the soft drinks of the brand Coca Cola are being
manufactured other than Maaza. In the plant the production is being
carried round the clock the employees’ works in three shifts. Work
culture is very different from the other companies. Here most of the
working population is young the age group is between 23 to 35 most of
the employees lies n this age group. One thing that is really very
special about the plant is that in the mess (canteen) of the office all the
people take the lunch together, starting from the General Manager to
the peon. The hierarchal order in the office is explained by the flow
chart. AREA GENERAL MANAGER
HUMAN
FINANCE
PLANT MANAGER RESOURCE
MANAGER
MANAGER
ASSIT MANAGER ASSIT MANAGER

ASSIT MANAGER
EXECUTIVES EXECUTIVES
EXECUTIVES
TEMP. STAFF TEMP. STAFF

TEMP. STAFF

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ABBREVIATION LIST
AGM - Area General Manager

FM - Finance Manager
GMF - General Manager Finance
AFM (WC) - Assistant Finance Manager (Working Capital)
AFM - Assistant Finance Manager Reporting
ASM - Area Sales Manager
AR - Accounts Receivable
MRP - Maximum Retail Price
RO - Region Office
IS - Information system
PMF - Price Master File
CMF - Customer Master File
CMS - Cash Management System
DEF - Distributor Evaluation Form
CAF - Credit Application Form
ERA - Empties Receipt Advice
FIFO - First in First Out
GR - Gross Revenue
GRN - Goods Receipt Note
JV - Journal Voucher
OWP - One Way Pack
PJV - Purchase Journal Voucher
PMF - Price Master File
SM - Sales Manager
SPAF - Selling Price Approval Form

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SUMMER INTERNSHIP 2007
The training which spanned over 8 weeks was divided on a Project

basis. The description of which is being given below:
Projects Undertaken:-
1. Balance confirmation with the Distributors

2. Analysis of Sales and Account Receivable Process and
Reconciliation

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Project: - 1
“Balance Confirmation with the

Distributors”
“Balance Confirmation with the Distributors”
My main job in the first week was to confirm the balances of the
distributors, as what the balance of HCCBPL a/c in their books is and
what is their balance in the books of HCCBPL. There are above 700

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active and non-active distributors of the company from which the
balance were being confirmed through the letter of confirmation which
the set format of the company to have their balance confirmed, which
is also a very important tool at the time of audit.
This whole process was also important to know about the distributors
of the company. After the whole process of letters and the follow up,
we received the balance confirmation letter from many distributors on
the basis of which the distributors were classified in various categories,
which are mentioned below:-
1. The first thing was the number of distributors confirmed the

balance.
In number In percent
Balance Confirmed 337 47.27%
Balance Not- 376 52.73%
Confirmed
Total Distributors 713 100%
The same is shown by the help of a Pie Chart.

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2. The second category was based on the number of transactions
made with the Distributors in the recent time period which was
classified as the operational and non operational Distributors.

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Operational Non- Total
Operational
In Number 459 254 713
In Percent 64.39% 35.61% 100%
3. The third category was based on the operational/non-operational

and confirmed/non-confirmed.
Operatio Operational Non- Non-
nal non- Operational Operational Total

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confirme confirmed confirmed non-
d confirmed
In 263 196 74 180 713
number
In 36.89% 27.49% 10.38% 25.25% 100%
Percent

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4. The fourth category was based on the confirmation given by the
Distributors, as some of the Distributors have differences in the
balance as per company’s books and as per their books.
Balance as per their books In Number

Same as per companies books 172
More than the companies books 63
Less than the companies books 102
Total 337

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Project: - 2
“Analysis of Sales and Account

Receivable Process and
Reconciliation”
“Analysis of Sales and Account Receivable Process

and Reconciliation”
(A) Introductory Overview

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The purpose of this process is to ensure that sale of the unit’s products
are performed within policies and procedures of the companies. The
unit follows the indirect distribution system for sales. The unit also
follows distribution to key accounts in Jaipur city from city depot. The
business process given below enunciates that.
As a starting point for this process, there are the routines related to
credit concession and pricing, which will determine basic information
registered on the Distributor Evaluation Form (DEF), Credit Application
Form (CAF) and Pricing Master File (PMF) the ending point of the
process is recording of revenue and accounts receivables related to
sales. The core process will comprise the Sales Order, Shipping (Check-
out and Check-in) and finally the settlement process.
Collections and provisioning for doubtful accounts are the steps

subsequent to daily settlement and described in the Cash Receipts and
Allowance Doubtful Accounts narratives, respectively.
JAGUAR System is being used for recording sales and AR related to

indirect distribution and for financial accounting, TALLY (GL).
(B) Sales and Accounts Receivable -

Process
(A) SALES – (Routine Transaction Type):

1. Pricing

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2. Order Entry
3. Route Cash & Carry Sales
4. Route Settlement
5. Billing
(B) RETURNS – (Non-Routine Transaction Type):

1. Credit Memos
(C) OTHER - (Routine Transaction Type):

1. AR Monitoring and Credit Control
2. Sales analysis and reconciliation

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SALES AND ACCOUNTS RECEIVABLE -
PROCESS
SECTION A: SALES (Routine Transaction Type)
A.1: Pricing:-
PMF: - Price master file (PMF) is maintained in Jaguar System. The

master contains information regarding Maximum Retail Price (MRP),
tax percentage, distributor commission, freight, retailer margin and
crate rental. The price master is categorized based on distributor
category. This categorization is called as rate code. Each distributor
category is assigned a different rate code. The price of the product is
same for all distributors; however the freight component will vary
based on the location of the distributor (rate code).
Access: - The access to the price master is with the assistant finance
manager (working capital) (AFM-WC) and the Information system (IS)
system administrator. All updates and entries in the price master are
done by the AFM.
SPAF: - Selling price approval forms (SPAF) are generated for any
changes in the pricing of the products or for introduction of a new
product. This SPAF contains details like the product, pack size period
for which the price change is applicable.
Prepare and Access: - This is prepared by Finance Executive, initially

approved by Finance Manger (FM)/General Manager Finance (GMF),
Sales Manager (SM), Area General Manager (AGM), and then sent to
the region office (RO) for further approvals from region and division.

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FM/GMF communicates through lotus notes mail to RO for SPAF
approval. The PMF in Jaguar is updated by AFM(WC) based on lotus
notes mail approval from RO. For updating the price masters a new
code is created for each change in the price.
Approved SPAF is then recorded in ‘price master updation register’.

Every month audit trail print out is verified by AFM (reporting) with the
approved SPAF and signed by him. This audit trial is also reviewed and
signed by the finance manager

8
A.2: Order Entry:-
Orders are received from the distributors by the Sales Officer/Sales

Executive/Area Sales Manager who in turn communicates the same to
sales coordinator. These orders are most of the time communicated
over phone and at times through fax. The sales coordinator then
generates a sales order form and sends it to the finance executive. The
finance executive is responsible for order processing and reviewing the
order. He checks the value of the order with the individual customer’s
outstanding AR and credit limit
Credit limits are fixed at the beginning of the year based on the India
Division Credit policy.
A daily credit monitoring report is prepared by the finance executive

and is sent to the FM, AFM (WC), SM and ASM’s
Finance executive signs the sales orders for orders to be shipped. The
finance executive approves the dispatches after review of the
outstanding balances and the limits established.
Then the approved sales order is sent to shipping executive / officer /

asstt. officer. Based on the approved sales order the shipping
executive / officer / asstt. Officer gives the order to checkers for
loading the trucks. On a daily basis the finance executive reviews the
pending orders and cancelled sales order. Pending orders are tracked
and reviewed by the finance executive
New Customer Set Up

9
The Sales Executives, Area Sales Managers, identify potential
customers/distributors and carries out various evaluation procedures.
The Sales Manager (SM) finally approves on the distributor to be
appointed. The ASMs prepares in the Distributor Evaluation Form.
This is approved by the SM and forwarded to finance for independent

verification. Details like proof of address, sales tax registration,
financial health and creditworthiness of the distributor, infrastructure,
and experience in other businesses are recorded and verified by the
finance executive. The details mentioned in DEF are then evaluated by
the AFM (WC) and approved by the FM and AGM prior to creation of the
new customer/distributor in the Jaguar system.
CMF: - The new distributor is included in the customer master file

(CMF) in Jaguar. Updates in Jaguar to master data are restricted to the
AFM (WC) and the administrator of the system. Audit trails of
distributor master are generated as and when the additions/changes
are made to CMF. Any change to customer master data is reviewed by
the FM.
CAF: - Credit Application Form (CAF) is prepared on a yearly basis for

all distributors. These forms are used to evaluate the credit worthiness
of the existing distributors. Some of the parameters used for such
evaluation are expected growth in volumes, history of performance,

0
defaults, maximum amount of credit allowed at any point in time. CAFs
for all customer and distributors are approved for establishing the
revised credit limit by SM, FM and AGM at the beginning of the year.
Credit limits are fixed on the basis of the guidelines provided in the
credit policy prescribed by the India Division. Following are the
additional factors considered to establish credit limit:
a. Volumes and expected growth

b. Distance and Transit time of the consignment
c. History of defaults
d. Ageing
e. Number of times the party has maintained positive
balances
f. Information obtained on past performance.
A.3.1 Check Out:-
As per the current structure in the warehouse department, the

checkers report to the shipping executive \ officer \ asstt. Officer.

1
The finance executive-AR hands over the approved sales order to the
Shipping executive / officer / asstt. officer, who in turn gives the sales
order to checker for lifting the finished goods. checker start the loading
of truck by loaders brand packwise as per given order and prepare
checker slips.
Shipping checkers are responsible for counting the load, verifying

Maximum Retail Price (MRP) and the Manufacturing Date (MFD) on the
bottles. Time to time logistics assistants verifies the cases loaded as
per sales order. The counting done by the shipping checker is a brand
pack wise detail count which is also signed off by him. On the same
checker slip the signature of driver is taken as an acknowledgment of
the goods count. Load sheet is prepared by the shipping assistants
based on checker slips. Invoice is prepared by the shipping officer/
Executive based on the load sheet which is finally approved by the
authorized signatories...
After loading is finished, Security is responsible for counting the ‘total’

load in a truck and write down the stack details and quantity in a
register. Security enters the total dispatch quantity in security out
register. Also a sign is put on the reverse of the load sheets. This count
is a total full count after which the vehicle is allowed to go outside the
plant. After Invoice generation, shipping executive / officer check
documents and signs Invoice. All shipping documents are generated,
after preparation of Checkers’ slip, which is being prepared after the
loading.
The loading of finished products happens in the area demarcated as

loading bay and empties are unloaded in the unloading bay. The
drivers do not have access to finished products storage areas.

2
A.3.2 Check in:-
a. For products dispatched, distributors acknowledge the

acceptance on the invoices for the quantity received.
Normally the distributors return empties in the same
vehicle for bring back to plant. The drivers bring the
distributors’ acknowledged copy of the load sheet /
letter head indicating quantities returned.
b. Security at the gate records in the Gate in Register,

the date and time of entering in the premises, vehicles
number, and distributor’s name, and empties quantity
and obtains the driver’s signature on the register.
c. Inside the premises the gate security counts the load

and reconciles with the quantity mentioned in the
invoice/load sheet. The count is written down on the
reverse of the invoice / load sheet and then the
security guard signs it. The truck is released for
unloading. If the quantity as per invoice / load sheet
and the count do not reconcile, the security guards
inform their supervisor and then supervisor puts
remarks for “unloading in front of security” for correct
quantification and possibly correction on the Gate
Register.
d. At the unloading area, the checker counts the empties

in the truck and records the brand pack wise count in
‘vehicle movement card’ (which is similar to check in
slip). The checkers also review chip necks, and

3
breakages and shortages inside the crates. After
unloading, the checker, Security and the driver sign
the vehicle movement card. Then the card is handed
over to the shipping assistant.
e. The shipping executive reconciles the quantities in the

invoice/load sheet and the vehicle movement card and
if there is any difference an investigation is made.
f. If there are no differences, the assistant signs the

vehicle movement card prepares the empty receipt
advice (ERA). The ERA is prepared in triplicate and
signed off. The driver signs and keeps one copy. The
other copy is given to customer/distributor. Empties
inventory movement is recorded in Jaguar.
The following accounts are booked on a monthly basis in Tally:
DR Sundry Debtors – Liquid

CR (Different payable heads for statutory payments)
CR Gross Revenue (Brand Pack wise net of Dist commission)
DR (Different expense heads for statutory Payments)

CR Gross Revenue (Brand Pack wise net of dist commission)

4
A.5 Billing:-
The Excise invoice is generated by shipping officer from Jaguar on the

basis of approved sales order and load sheet after the products are
loaded on the trucks. For traded goods to be dispatched from duty paid
warehouses a Commercial Invoice is prepared. The count sheet of the
checker, load sheet and sales order are the basis of preparing the
invoice hence system automatically records entry based on shipping
information.
The sales AR account for customer/distributor (subsidiary ledger) is

debited and inventory is reduced in Jaguar. A monthly gross revenue
entry is booked in Tally (GL) based on the input obtained from Jaguar
relating to sales made during the month. The entries have been
explained above.
The invoices are reviewed and signed by XXXX the designated

authorized signatory as per excise declaration. The signatory signs
after comparing the sales order with the invoice. The security at the
gate compares the invoice after performing a physical check of the
finished goods on truck and compares the same with sales order and
invoice and verifies for the finance approval on sales order.
Accounts receivable section maintains separate account for sale of

liquid and cases on loan for each distributor.
Receivables are automatically recorded in the jaguar system for liquid

based on the sales invoice. Similarly receivables are automatically
recorded in the jaguar system for cases on loan based on the sales

5
invoice and ERA. As given above the invoice is prepared on the basis of
dispatches. This invoice is the basis for updating closing stock and the
receivables in Jaguar system. Hence the system is automatically
reconciling goods invoiced to goods shipped.
The unit maintains a customer-wise accounts receivable sub-ledger, by

recording daily sales, based on individual invoices in Jaguar. Further,
collections are ‘on account’ and are recorded against specific invoice
for each distributor on FIFO basis.
Following is the brief description on the computations and booking

process of VAT and Excise tax.
Sales tax is paid on sourced products. The computation of excise
liability is based on Maximum Retail Price (MRP). Excise is paid after
availing the benefit of CENVAT on inputs. The jaguar system computes
that excise duty at the time of invoicing.
The accounts receivable sub-ledger from Jaguar system is reconciled

with the general ledger control account in Tally on a monthly basis
before submission. Monthly gross revenue reconciliation between
Jaguar and Tally is prepared by XXXX and reviewed by XXXX.
There is an automatic “Date Locking” system in JAGUAR, whereby the
system automatically changes the date at 12 Midnight, hence there
cannot be any invoices / any other documents pending or carried
forward to next day.
The continuous stationery of excise invoices are pre numbered and

printed on the invoices. Further, the Jaguar system does not permit the
same invoice number to be entered for more than once.

6
B. RETURNS – (Non-Routine Transaction Type):
1 Credit Memo Issuing:-
A credit memo is issued to the customer/distributor in any of the

following situations: Sales return, incorrect accounting, credit to be
allowed on account of discount/incentive schemes. See deduction from
revenue narrative for more details
Sales return is not an accepted practice at the unit as per the policy of
the Company. Sales returns, if any, happen only under exceptional
circumstances after obtaining adequate approvals from the Region
Office (RO) and the Division Office.
The stocks are entered in Jaguar through the Market Return module. A
’sales return invoice’ is generated for the approved Distributor/Credit
customer. All the sales returns are recorded on Check-in slip (finished
goods receipts). Distributor/Credit customer AR account is credited as
per sales return invoice. In case the reason for the return is related to
quality of the product, then Quality Assurance manager approves it.
Credit Notes are approved by the FM Sales return invoices are
reviewed by AFM (WC) and approved by Finance Manager

7
C. OTHER - (Routine Transaction Type):-
1. AR Monitoring and Credit Control:-
Aging of outstanding related to distributors is taken out from Jaguar on

monthly basis by Finance executive and the same is reviewed by AFM.
The sales department is responsible for the timely realization of
receivables. Copy of the same is sent to FM. Further, the finance
associate prepares a daily outstanding report distributor wise both for
liquid with ageing analysis and cases on loan and circulate the same to
sales department, FM, AGM and RFM..
For further details related to identification of delinquent account

receivables, please refer to “Allowance for Doubtful accounts and Bad
Debts” narrative.
Before generating the report, the following steps are followed:
The shipping department sends to Finance a copy of all invoices

generated during the day.
As mentioned above, on the basis of sales order, shipping information

(load sheet) is prepared and on the basis of load sheet invoice is
prepared, hence there is manual matching of sales order, shipments
and invoices. The finance assistant/executive is responsible for
reconciling invoices to the sales bill register from Jaguar, the Sales
Order and the gate register to verify accuracy of documentation and
sales actual dispatch. Sales report is generated in a specific format
provided by the region office. The report is approved by finance
manager.

8
Balance confirmation statements are circulated to all the distributors
every month. The distributors come to the plant for the reconciliation
of incorrect statements with the finance associates.
2. Sales analysis and reconciliation:-
Daily sale reporting:

The IS executive prepares the daily sales report (DSR).The finance
executive is responsible for reviewing the daily sales report generated
(for previous day sales) by the shipping department. This report is then
sent to management by the Sales Coordinator. In addition to this
primary sale to distributors are compared with secondary sales.
Further, filled stock is physically verified on a daily basis and compared
with inventory as per books of account. This daily sales report contains
details of the brand and pack wise sales for the month to date and year
to date. This analysis is reviewed by ASM, SM and AGM. (Relates to
daily reporting).
Monthly reconciliation:
At the month end, the reconciliation is carried out by Finance Executive

between the sales (quantitative) as per ‘daily sales reporting’ and sales
as appearing in Jaguar. The reconciliation is reviewed by AFM (WC).
Also on a monthly basis a customer wise sales analysis is done for each
ASM territory and discussed with the AGM and FM.

9
AFM (WC) compares the actual margins with that of Rolling Estimates
on a weekly basis. This margin analysis is reviewed by Finance Manger
and sent to HO (Gurgaon) for further review. In addition to above
monthly gross revenue, contribution analysis is performed at the Unit
(GR Reconciliation) by AFM (WC) and sent to Region.
The accounting entries relevant for this narrative are as follows:
Dr. Sales tax Expense a/c

Cr Sales tax liability a/c
(For accruing the liability)
Dr Sales tax Liability a/c

Cr Bank a/c
(For payment of sales tax)
Dr. Excise Duty a/c

Cr Excise Duty Payable a/c
(For accruing liability)
Dr Excise Duty Payable a/c

Cr Excise Duty Receivable a/c-RG23
(To set of the liability)
If the excise duty receivable is less than the payable amount then the
entry is :
Dr Excise Duty Payable a/c
Cr Bank a/c
RECOMMENDATIONS

0
The recommendations that I made to the company after completing
my projects were:
1. Balance should be confirmed at the time of the transactions are

being made with the Distributors which would result in less time
consumption and also will reduce the burden of confirming the
balance with a huge number of Distributors. And also it would be
easily confirmed by the Distributors as they would be aware
about the transaction that has taken place.
2. The Distributors details like name and address should be updated

which would lead to ease in the confirmation process. Also the
company should keep a record of the operational and non-
operational Distributors.
3. The Distributors should be told about the TDS at the time of the
payment which would result in matching up the balances in the
books of the company and the Distributors. And also it would
reduce the disputes raised because of the differences in the
balance of the books of the Distributors and the company.
LIMITATIONS OF THE STUDY

1
There were certain limitations that were faced by me during the
summer internship they are:
1. The balance was confirmed with many Distributors with whom

the company has transacted years ago, and even the records of
the Distributors were not being updated like the address of some
Distributors was changed and that was not updated this cause
some trouble at the time of the confirmation.
APPENDICES
Hindustan Coca-Cola
Beverages Private Limited.
SP 39-40, RIICO Indl Area, Kaladara Chomu, Dist Jaipur

2
Tel : 01423-513903-906 Fax No. 01423-513915
To,
Entertainment Paradise
Tonk Road, Jawahar Circle
Jaipur
Sub: Balance Confirmation
Dear Distributor;
Our book shows the following balance of your account:-
ACCOUNT RECEIVABLES (AR):- 20000dr

CASE OF LOAN (COL):- 10000cr.
Please confirm the same.
Thanking you
(Manish Khanna)
Asst. Manager Finance
Confirm the Balance here.

3
BIBLIOGRAPHY
1. Auditing – Jain, Khandelwal & Pareek

2. Management Accounting – Agarwal & Agarwal
3. Narratives of Company
4. www.cocacola.com
5. www.thecoca-colacompany.com
6. www.coca-colaindia.com
7. www.pepsi.com

4

Analysis of Sales and Balance Confirmation With The Distributors

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Little Drops of Joy

Analysis of Sales and Balance

Submitted By: - Submitted to:-

International School of Informatics & Management (Jaipur)

International School of Informatics & Management, Jaipur 2

“Success is nourished under the kind of combination of perfect

I would like to express my profound gratitude towards Hindustan

Coca-Cola Beverages Private Limited (HCCBPL) for giving me the

I extend my sincere and heart felt gratitude to Mr. Pawnesh Maniramka

A special word of thanks to Mr.Sanjeev Kakkar, Mr.Sumit Gupta,

International School of Informatics & Management, Jaipur 3

International School of Informatics & Management, Jaipur 4

Coca Cola one of the leading beverage manufacturing company not

The training which spanned over 8 weeks was divided on a Project

International School of Informatics & Management, Jaipur 5

Coca Cola one of the leading beverage manufacturing company not

1. The purpose of this project is to ensure that sale of the unit’s

2. The objective of the study was to know about the Distributors of

International School of Informatics & Management, Jaipur 6

Coca-Cola India is among the country’s top international investors,

International School of Informatics & Management, Jaipur 7

Major operation of the company is manufacturing beverages, on the

• COBO – Company Owned Bottling Operation

The vast Indian operations comprise 25 wholly-owned- company-owned

These brands are sold in two patterns:

• Glass bottle which is called RGB – Returnable Glass Bottle.

International School of Informatics & Management, Jaipur 8

The business system of the Company in India directly employs

The vast Indian operations comprise 25 company-owned bottling

The company-owned Bottling arm of the Indian Operations, Hindustan

A career at Hindustan Coca-Cola Beverages Pvt. Ltd. is truly a one-of-a-

International School of Informatics & Management, Jaipur 9

The partner type relationship with bottlers Franchisee owned bottling

It is this way in which COCA-COLA India strengthens its marketing that

COCA-COLA work under two types of bottling operations:-

COBO - in COBO the production as well as Selling is done by the

Some of the COBO'S of the company are at:

FOBO- The concentrate is being sold to the franchise then

International School of Informatics & Management, Jaipur 1

COCA-COLA has been concentrating 0n fOUR Main types of markets:

International School of Informatics & Management, Jaipur 1

CRITICAL MASS - MARKET

LOW SHARE MARKET

Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola

International School of Informatics & Management, Jaipur 1

International School of Informatics & Management, Jaipur 1

International School of Informatics & Management, Jaipur 1

An 1890s advertisement showing model Hilda Clark in formal 19th

Before Santa Claus, however, Coca-Cola relied on images of smartly-

International School of Informatics & Management, Jaipur 1

Some of the memorable Coca-Cola television commercials between

During the 1980s, Pepsi-Cola ran a series of television advertisements

International School of Informatics & Management, Jaipur 1

In 2006, Coca-Cola introduced My Coke Rewards, a customer loyalty

International School of Informatics & Management, Jaipur 1

Coca-Cola was the first-ever sponsor of the Olympic games, at the

In England, Coca-Cola is the main sponsor of The Football League, a

International School of Informatics & Management, Jaipur 1

The "Win A Player" competition was very controversial, as at the end of

International School of Informatics & Management, Jaipur 1

International School of Informatics & Management, Jaipur 2

In India, there exists a major controversy concerning pesticides and