1.

INTRODUCTION

1
 INTRODUCTION
Milma is a co-operative society , farmers is the owners of milma. Dairy is a
place where handling of milk & milk products is done and technology refers to the
application of scientific knowledge for practical purposes. Dairy technology has been
defined as that branch of dairy science ,which deals with the processing of milk & the
manufacture of milk products on an industrial scale.

Milk occupies a number position in India’s diet. According to nutrition advisory

committee of Indian council of medical research a balanced diet for an adult Indian
should include ten ounces of milk per day. Most of milk produced in India is from rural
areas, farmers had a difficulty to take it in to the city. The small farmers faces a number
problems such as in adequate transport facility ,non availability of veteniery services,
and absence of proper system of processing and marketing of milk. The production of the
milk is done rural areas by small marginal farmers who find it difficult to market but the
profitable market is in urban areas. The system of processing, preserving and marketing
the milk in villages seem to be a problem so in order to solve this problem co-operative
milk supply societies and milk unions have been established. Government of India
launched a dairy program called “flood program” called with National Dairy
Development Board (NDDB).The main aim of the program was to organize milk
producers co-operatives in several probable places of India taking the kaira district
(ANAND) co-operative milk producers union is (AMUL)of Anand , Gujarat as the
model with the above object in the view. The diary societies in the Gujarat are properly
known as ‘white revolution”..NDDB has now India’s 1,17,575 village dairy co
operatives federated in to 170 milk union and 15 federations procured an average
25millions liters of milk every day.12.4million framers are presently members of village
dairy co operatives.

2
 2: SCOPE OF THE STUDY

Milma is one of the most brands in milk industry of Kerala having a rigid
organizational structure carrying out various managerial functions. And also milma is in
prominent position in the milk market of country by adopting various marketing
techniques and professional management system in this co-operative union. So the scope
of the study spread to all over departments, their activities and functions and what are the
assistance providing the various department in this dairy to achieve their organizational
goals.

3:OBJECTIVES OF THE STUDY

 To study the organizational structure of Milma kasargod dairy.

 To understand the industrial practice.
 To find out various managerial process handled by milma.
 To study the various functions of each department.

4:LIMITATIONS OF STUDY
 The time is critical limitation factor in this study.
 Most of data required is kept in head office.
 The unwillingness to disclose all the information from certain departments.
 The study includes all limitation since there is no structured questionnaire form
of research.
 Practical difficulties in collection of accurate data.

3
5:  INDUSTRY PROFILE

4
 INDUSTRY PROFILE

In India food industry dairy has made a rapid &constant development after the
independence. For securing stable development and to promote farmers growth the
Indian government has Made initiative .The NDDB (National Dairy Development
Board) has well supported operation white revolution all over the Indian ;it laid the
foundation stone to start Kerala Co-operative Milk Marketing Federation (KCMMF).
The Gujarat dairies manage the brand AMUL ,Karnataka manages NANDINI&KCMMF
manages MILMA.

Kerala Co-operative Milk Marketing Federation (KCMMF) popularly called

Milma was established in April 1980 with its head office at Thiruvanathapuram for the
successful implementation of the project ‘operation flood’ (A dairy program launched in
1970 under the Act of National Dairy Development Board (NDDB) .For the effective
functioning by decentralised system KCMMF departed as Malabar regional co-operative
milk producers union ltd .

The federation was set up under the agency of NDDB on 21 st feb.1980. For the
effective functioning by decentralized system KMMF departed as Malabar regional co-
operative milk producers union Ltd (MRCMPU), Eranakulam regional co-operative milk
producer’s union ltd. (ERCMPU), & Thiruvanathapuram regional co-operative milk
producers union ltd.(TRCMPU).

MRCMPU
5
 This is one of the regional co-operative milk producers unions processing and
marketing fluid milk and other milk products in Kerala state. The area of operation is in
six northern districts Palakad, Malapuram, Kozhikode, Wayanad, Kannur, and
Kasaragod with its head office at Peringulam near Kunnamangalam, at the distance of 15
km from Kozhikode city. MRCMPU was registered on 29-06-1989 and started
functioning on 15-01-1990.from 15-01-1990 the administrative committee constituted by
the government was governing the organization and from 16-04-1993 MRCMPU has
been governing by an elected board of directors.
MRCMPU limited is a union of more than 1000 village level dairy co-operative
societies located in the six northern districts of Kerala state in south India & it is owned
by the dairy farmers who are members of each affiliated society & who live in the area of
operation of these societies. The societies function on the pattern of the societies
affiliated to the world famous Anand milk union ltd (AMUL) at Anand (Gujarat), India
& hence are also known as Anand pattern co-operative societies or ‘APCOS’.The area of
operation of MRCMPU Ltd comprises of the six revence districts of North Kerala viz,
Kasaragod, Kannur, Kozhikode, Waynad, Palakkad & Malappuram. The union is
affiliated to the state level apex body Kerala co-operative milk marketing federation
limited along with its sister union at Eranakulam & Thiruvanathapuram. The head office
of the union is located at peringome under Kunnamangalam post office near Kozhikode.

OBJECTIVES

1) Provide quality milk & milk products to the consumers.

2) To provide milk & milk products for reasonable price to the consumers
3) To built up a viable dairy industry in the state
4) To provide constant market & suitable price to the dairy farmers for their
production.

6
 KASARAGOD MILMA DAIRY

The Kasaragod dairy is located at Kanhangad, it is the smallest dairy under the
union of Kasaragod district and selling milk and milk products in the district. This diary
is the latest dairy commissioned and started operation in 2002 with a capacity of 30000
LPD. Kasaragod milma dairy was established in 2nd July 1987 as the chilling plant upto
2002,after it has developed as diary on 28th Januvary 2003.

ACHIEVEMENT

 Kerala State Pollution Controll Award –1999,2008,2009,2011.

 Kerala State Energy Conservation Award –2005,2006.
 ISO 9001 :2012.
 Implementation of quality Management System –2008.
 Best sale performed unit-2009.
 Government of Kerala Safety Award –2012.
 DNV business assurance appendix ITO certificate.

7
 THE BASIC STRUCTURE OF KCMMF

KCMMF
 

TRCMPU ERCMPU MRCMPU

TRIVANDRUM KOTTAYAM MALAPPURAM

KOLLAM ERNAKULAM WAYANADU

ALAPUZHA IDUKI KASARAGOD

PATHANAMTHITA TRICHUR KANNUR

KOZHIKOD

PALAKKAD

PALAKKAD
 MISSION

‘Farmer’s prosperity through consumer satisfaction’

The mission statement of MRCMPU is as follows:

To bring about socio economic development of farmers on a suitable basis and
providing quality milk and milk products to the customer at a reasonable price. The
above statement shows the aspirations of MRCMPU and its determination to achieve the
mission. When we look in to the various activities of MRCMPU it is good alignment
with mission statement.
Almost 3 quarters of the money paid for a packet of a milma milk goes directly
to a farmer in the village. The prosperity and the health of the people determine the
health of the nation.

CAPTION

“Let’s grow”

‘The goodness Kerala wake up to’

MOTTO

Your health is our concern.

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 WHITE REVOLUTION

The white revolution is also known as operation flood ,gave a major boost to the
dairy sector in India in the late 1960’s by producing milk in rural areas through small
holder producer co-operatives &moving industrially processed milk from these small
holder sources to urban demand centers. This established the much needed linkages
between rural producers &urban consumers. The growth achieved has been uninterrupted
ever since &culminated in India becoming the worlds single largest producers of milk
since the mid 1990’s & with over 80 million farming households involved in dairy
related activities. The dairy industry has emerged as a single largest contributor to the
Indian economy. More than 70% of Indian milk is produced by households who own
only one or two milk animals.

6: ORGANISATIONAL STRUCTURE

The director of dairy development is the head of the department. The directorate
10
is situated at Trivandrum. There are 14 district offices, each headed by a deputy director
of development. In each district there are dairy extension service units at the block level.
The extension service unit is cutting edge level of the department and is headed by dairy
extension officer. The dairy extension officer reports to the district deputy director who
in turn reports to the director. In addition to this there are 14 district quality control units.
Each unit is headed by an assistant director who is designated as quality control officer.
The director is assisted at the directorate by 2 joint directors, 3 deputy directors, an
administrative officer, finance officer and supporting staff.

ORGANISATIONAL CHART OF MILMA

Chairman & Board of Directors

Managing Directors

Functional Heads of Head

Office

Procurement Finance Production Marketing

&Input Department Department Department
Department
 

11
 7: PROCUREMENT AND INPUT DEPARTMENT

PROCUREMENT AND INPUT DEPARTMENT

12
 Procurement and input is one and only department maintain direct relationship
with farmers & co-operative society and they make avail the needed milk to the plant and
they concentrate more on to promote growth of farmers by conducting advanced
development oriented programs including field visiting, farmers grievance handling,
giving guidelines to the farmers etc….In short they deal more on with farmers than
consumers. Through they are working inside the organisation. They wouldn’t maintain
direct relation with the dairy because they only procure milk to the dairy.

All the expenses in connection with procurement is pain by the head office to the
procurement and input unit.The procurement and input department is responsible for
functions related to production enhancement, procurement of milk &input supply to
societies and farmers. The object of P&I department is to promote & strengthen dairy co-
operative network to ensure sustainable socio-economic development of diary farmers by
providing effective support systems for the profitable production & procurement of
quality milk and to take up other activities so as to achieve the object of the union.

The P&I department of Kasaragod dairy is an effective one. This efficiency is

achieved through by conducting various productivity enhancement programs and farmers
welfare programs. Farmers are guided well by the village resource persons allocated in
different areas of Kasaragod district.

MIS is a system that provides relevant information in the right form and at the
right time to different managers for efficient planning & controlling or it is the system
links all the networks of milma and every person can search about the details of milma.
The purpose behind the MIS department is to provide precious information to the
organisation to support the common object of the organisation.

One of the most important objective of the P&I unit is implement social
development activities for farmers and DCS staff life insurance scheme for farmers
scholarships rewards and awards .The milma function as an effective communication
system and co-operation among all the department of milma and it has good structure to
help things are going smoothly.

OBJECTIVES OF P&I DEPARTMENT

13
1) Function as an effective communication channel between the union & APCOS
2) Monitor, Procurement cost by efficient organisation of milk roles
3) Increase & sustain milk quality
4) Implement social development activities for farmers & DCS stand life insurance
schemes for farmers scholarships rewards & awards

PROCEDURE OF P&I DEPARTMENT

1) Procurement of raw-milk
2) Purchase of services
3) Inspection & testing of raw-milk
4) Production identification & trace ability

FUNCTIONS

1) Production enhancement
2) Procurement of milk & input supply to societies & farmers
3) Collecting farmers feed back
4) Make avail equipment & starting items for the APCOS & farmers
5) Accounting to the head office
6) Conducting farmer’s development oriented program

DUTIES OF P&I UNITS

 Attending meeting at head office.

 Visitors to APCOS to monitor the effectiveness of supervisors unit.
 Attending training.
 Monitoring of BMC/AMCU related functions.
 Arrange meeting of society representatives.
 Certification of transportation bill.
 Weekly performance reviews of P&I staff.
 Attending field programmes at societies.
 Correspondence with head office ,societies & other departments.

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 FLOW CHART: ROW MILK PRODUCT

Tanker Milk
Society milk

Sampling
RMRD

Chilling 5 degree

Chilling Below Storage Below

5 degree 5 degree

Standardisation

Pasteurization

Packing

Cold Storage

Despatch

STRUCTURE OF PROCUREMENT
15
 &INPUT DEPRTMENT

Procurement & Input

Officer

Junior Superintendent

Junior Assistant/Office

Assistant

Apprentices

The head of procurement & input department is procurement & input officer. All
decisions are taken for procurement & input officer. Under procurement & input officers
is junior superintendent main duty. Junior superintend is recruitment provide training &
development etc. Then under junior superintend is junior assistant. The duty of junior
superintend are done for through junior assistant. The duty of junior superintend are done
for through assistant. The last apprentices. Apprentice’s main duty give salary gives
salary & wages to the employees.

 ATTENDANCE REGISTRATION:
T he company use biometric punching machine for the impeccable attendance
16
registration by using thump impression on and is keep as strict when workers are in and
out.

LEAVE:
In Kasaragod dairy the workers are allowed 12 days of casual leave and six
months of maternity leave.

WORKING HOURS:

The working schedule of general workers are splited into three shifts, which are
in eight hours longing nature. The time schedules of workers are;

7 am to 03 pm.

03 pm to 11 pm.

11 pm to 7 am.

Office time: 10am to 5 pm

TRADE UNION:

The company consist of two trade unions, INTUC & CITU.

WAGES AND SALARIES

Wages as con in the board sense covers all form of compensation paid to the
employees of a business. This includes salaries, bonus commission or any other forms of
monitory payment. wages and salary administration is that function of management
which concerned with the determination of how much employees are to be paid far their
work. so the wages and salary are based on:

 Nature of the job.

 Present worth of that type of job.
 Ability of workers.


RECRUITMENT

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 The recruitments is takes place when the vacancies arise due to various
reasons like death, retirement & promotion. As far as the Kasaragod dairy is concerned
the candidates are mainly recruited in two ways.

1. Internal Sources:
It is the source through which employees are recruited with in the
organisation like promotion &transfer.
2. External Sources:
It is the source through which employees are recruited outside the
organisation. As far as the Kasaragod dairy is concerned they recruiting employees from
employment exchange &Zillah Syndic Welfare Board by the direction of head office.

TRAINING & DEVELOPMENT

Training may be used to increase competency in a present position to prepare

people for promotion and to provide opportunities for self development. The training
period of dairy may vary from three weeks to five week for blue colour workers and one
month to three months for white colour workers. The Kasaragod dairy provides both the
on the job training and off the job training.

OTHER AMENITIES

 Washing facility and allowance.

 Bathrooms and toilet facility.
 Dress room.
 Canteen.
 Uniform.
 First aid medical facility.

18
 

8: PRODUCTION DEPARTMET

19
 PRODUCTION DEPARTMET

Production or manufacturing is an important activity of an industrial unit.

Kasaragod Milma dairy products currently two types of milk &toned milk
&homogenized milk.

The product produced must be of high quality for that production department has
to make sure that, production process is done in hygienic condition, All equipment
should be cleaned thoroughly. Maintain right temper at are that is while heating
&chilling. Maintain right combination of fat, SNF. The RMRD has to make sure that
goods produced on the basis of order given by marketing department.

Production consist of certain process which is done to make the milk procured,
goods for distribution of certain process which is done to make the milk procured, goods
for distribution.

The Kasaragod Milma Dairy produces homogenised & non-homogenised

milk. Homogenised milk is distributing in 500ml pack & it covered by dark blue cover
pack. The non-homogenization is also called toned milk & it is covered by a light blue
cover pack.

The sale of milma is evry day different. In that day 38000 cover homogenization
milma, 9500 cover toned milma & 3000 packet card are produced.

In Kasaragod dairy 4 tanks are there, that is 40,000, 30,000, 20,000, & 10,000.
They every milma packet they maintain 4.1 quality.

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 PRODUCTS OF KASARGOD DAIRY

Milma pasteurized vitamin A rich milk comes in two varieties;

TONED MILK
This milk is the most commonly used by the domestic consumer. Its available
500ml Packets .the milk contain 3% fat and 8.5% snf. It comes in blue colored packing.
HOMOGENIZED TONED MILK
This is the special type of milk specialized for tea. Hotels are the main consumer
of this milk. It is fat free milk. It comes in dark blue color packet.
CURD
To produce curd fresh milk is heated to 420-450c and it is standardized from 10-
10.5%SNF.it is done to get good body and texture of finished product. Then it is
pasteurized at 850-900c for 20-25 minutes and cooled to 450c then. The firm curd is
formed after adding 5-1 5 active culture in it. The major constituent of curd is water, fat
88- 89%,protien,lactose,lactic acid, calcium, and phosphorous. This method is adopted
successfully in Kasaragod dairy. After normalizing the production sachets are filled in
just after incubation by using fill pack machine. The curd will be usable after three hours
of packing.
SAMBARAM
Normally sambaram is the byproduct of butter. But in milma the method making
sambaram is quiet different from homely method. To prepare sambaram, curd with
minimum acidity of 1.65 is to be used. After addition of pasteurized water in the ratio of
60:40 processed extracts are added. For that 2.5%of curd volume ginger, washed chilies
and curry leaves are added. All these are mixed and filtered and then heated at 75 0c for 2
minutes. Added salt require 2%of curd volume. The processed extracts are pumped to the
curd tank and mixed well with the curd. They are circulated through the chiller till 5 0c
temperatures is attained. After that sambaram can be packed and placed in cold store and
distributed according to the customer order. The processed sambaram with greater
acidity distributer at first.

21
 Nutritional facts per 100 ml (Homogenised)

Energy value 61.0 kcal

Protein 3.2 g
Carbohydrate 5.3 g
Fat 3.0 g
Calcium 150.0 g
Vitamin A 54.6 mcg

Nutritional facts per 100 ml (Non Homogenised or toned milk)

Energy value 62.0 kcal

Protein 3.1 g
Carbohydrate 6.0 g
Fat 3.0 g
Calcium 160.0 g
Vitamin A 190 IU

22
STRUCTURE OF PRODUCTION DEPARTMENT

Dairy Manager

Technical Officer

Production Quality Control

Supervisors Dairy chemistry

Lab Technicians

Lab Assistant

Quality Assistant

23
 PRODUCTION PROCESS

RECEIVING THE RAW MILK:

The raw milk from the various societies are brought in by the contact vehicles in
cans the cans are then un loaded from vehicle then it is loaded in to belt conveyer.
CLARIFICATION:
The received milk quality has to be tested by the lab technician to know whether
milk is spoiled. For this purpose the lab technician smells, tastes, make color tests. This
test is called organoleptic test. doubtfull tests are send for clot on boiling test and cob is
positive, it is rejected.
DUMP TANK:

The milk is tested to ensure the milk is good quality. After that, the milk cans
from conveyor belt is procured into dump tank.

WEIGHING:
After clarification milk is poured in to weighing bowl. Then sample are taken in
to test the fat and SNF. The details of milk of various societies’ weight are transferred
from weighing machine computer. At the period of deficit the tankers coming from
another district would send to weighing machine located in front yard of the company.
CHILLING:
The milk is chilled up to 40c in the chiller. The chilled milk is stored in separate
silo tanks of 30000ltrs capacity in the same temperature which will prevent milk from
spoilage.
STANDARDIZATION:
The milk is standardized as per the requirements. Then the operators can confirm
type of milk to be p produced and can calculate cream for separation. Here the cream is
separated using the cream separator to adjust the fat percentage and milk powder is
added if required to adjust SNF.
24
PASTEURIZATION:
This is one of the process that milma undertakes in its dairy plants. This is the
scientific method of destroying decease causing bacteria in the milk without destroying
nutrient in the milk. The milk is heated up to 720c for about 15 second.
CHILLING AND STORAGE:
After pasteurization the milk is again chilled at 40c stored in separate tanks for
toned milk, standardized milk, and homogenized milk.
PACKING:
The milk is then pumped to the filling machine to filling in the packets(law
density polyethylene).the machine is fully automatic then only required milk filled in
each packets and then the packet is sealed and collected in to trays as 20 number in each
tray. After packing milk is again tested in lab to ensure that PFA specification are
satisfied.
COLD STORAGE:
The packets collected in the plastic trays are placed to the cold storage and then
stored in 50 degree that help to keep milk long laster without losing its quality.

25
 

9: MARKETING DEPARTMENT

26
 MARKETING DEPARTMENT
Marketing is the process of determining consumer demand for a product or
service motivating its sales and distributing it to ultimate consumer at a profit.

Marketing of fresh products which includes different varieties of homogenised

toned milk, curd and sambharam is a responsibility being carried out by the marketing
department. The marketing activities in the dairy can be classified into distribution
management and market development activities. The former involves distribution a fresh
milk and the curd in the morning and afternoon through insulated vehicles, collection of
money from dealers and all. The latter involves field activities designed to expand the
distribution channel of the union for milk and milk products. This is done through a team
of field.

The main functions of the department are;

 Market development and supply management.
 Study new markets.
 Identifying marketing problem and measures to solve the problem.
 Finding new customers.
 Canvas for bulk orders.
 Increasing sale and networking.

27
 FUNCTIONS OF MARKETING DEPARTMENT

1.Transportation:

The marketing department mainly uses transportation for exchanging finished goods
to the concerned dealers. They transfers goods to the concerned dealers through the
proper channel and vehicles used are in contract basis.

2.Advertising:

Advertising used as a means for promotional activities which help to sell out our
products in a good manner. Despite the companies advertisement are mainly through
newspaper, radio, TV, flux board and stand board etc….are mainly carried out or meat
by the head office directly.

3.Other sales promotional activities:

The company keeping very vigilant to maintain other promotional activities in order
too promote good sales like conducting consumer awareness program field work etc..

4.Seeking for new market areas:

The dairy conduct market study and field visit, which helps the concern for a great
extend to find potential market.

5.Receiving orders:

Sales representatives who are given authority in specified zone, which in turn
comprises of a number of defined markets.

28
 MARKETING MIX

Marketing mix is the term used to describe the combination of the four inputs
which constitute the core of the company's marketing system, the product, the price
structure, the promotional activities and distribution system. Thus it may be stated that
marketing mix comprises four P’s ,namely Product, Price, Place and promotion.

DISTRIBUTION CHANNEL:Distribution channel refers the way or channel in

which goods are passed through the suitable intermediaries from the company to the
ultimate consumers. The intermediaries helps the concern to reach the company product
into consumer hand. At present Kasaragod dairy maintain both the zero level channel
and one level cannel according to its nature.

 Company Retailers Final Consumers.

 Company Final Consumers.

There are many booth run by Milma directly. It includes, agents, retailers
and wholesalers for the distribution of product to the consumers. The path taken by such
goods in their movement from the producer to the consumer is referred to as the channel
of distribution.

TARGETED GROUP:

Today Kasaragod Milma Dairy producers four types of products, including two types of
milk products, curd and sambharam.

 Toned Milk - Individual house holds.

 Homogenized milk - Hotels, restaurant.

  Curd - Sell out in every region.

 Sambharam - Sell out in every region.

29
 STRUCTURE MARKETING DEPARTMENT

Managing Director

Assistant Managing
Director

Marketing Officer

Zonal manager

Main head of marketing department is managing director. All marketing fields managed
& controlled with managing director. Under managing director is assistant managing
director. The duty assistant MD is market study. The under assistant MD is marketing
officer. The duty of marketing officer is search of customer. Structure of marketing
department at last zonal manager. The zonal manger understands customer needs.

30
10. FINANCE DEPARTMENT

31
 FINANCE DEPARTMENT
Finance is science. It is also most important aspects of a business. The finance
department mainly concerned with the management of financial activities. The main
source of funds are contributions and income from head office. Each and every activities
are done only through the prior consideration of the head office or through KCMMF..

Since the six districts included in the area of operation of MRCMPU Ltd. Were
not included in the operation flood dairy development program of the national dairy
development Board of India, initial funding for the project on a park loan & part grant
basis was provided by the government of suitzerland through the Swiss Agency for
developed & co-operation (SDC). Once the union attained a financially sound footing,
the SDC sound withdrew from the scene allowing the organisation to grow & develop.
Independently.

STRUCTURE OF FINANCE DEPARTMENT

Manager

Assistant manager

Accounts officer

Assistant accounts
officer
The main head of finance department is manager. The all decision taken into manager.
The manager control for assistant manager. The manager controls for assistant manager
follow the decisions. Then all financial transaction clears for the duty of accounts officer.
And assistant accounts officer help for accounts officer.

32
OBJECTIVE OF FINANCE DEPARTMENT

1) Management Of Finance
2) Maintenance of records’
3) Analysis & interpretation for making policy decision
4) Fulfillment of statutory obligation
5) Preparation of budget

The main activities concerned with this department are;

1) Timely account transaction

2) Preparation of transaction charges to contract vehicles operator
3) Cash collection from sales
4) Payment to creditors & other agency
5) Audit related works
6) Fulfilment of statutory obligation
7) Analysis of financial statements
8) Preparation of all types of budgets
9) Maintenance of records

33
 PRICING STRATERGY
The pricing of milma products are done by govt & KCMMF jointly. As a result
of govt. intervention in fixing pricing of milma products, price levels are lesser compared
to the competitors.

PRICING
Fixing price includes several technique because it seeks at most care while fixing
price. Since the defective price causes a big loss to the concern. The fixed price can be a
higher, lower or moderate price, but the Kasaragod follows a sociable price, since it is
more consumer oriented .since the Kasaragod dairy comes under the KCMMF(Kerala
Co-operative Milk Marketing Federation). The price are fixed by the head office directly.

The Kasaragod Milma Dairy produces homogenised & non-homogenised

milk,curd,sambharam.Homogenised milk is distributing in 500ml green colour pack &
the price of homogenization milk is 19 rupees. The non-homogenization is also called
toned milk. The price of toned milk is 18 rupees. The toned milk is covered by a light
blue pack. The present market value of curd is 20 rupees and sambharam has 5 rupees
value.

34
 ACCOUNTING PROCEDURE

The accounting procedure should be as per the rules & regulations formed by
KCMMF. The following maintained by the accounts departments:

 Day book: The transactions are initially recorded in the day book. This is a book
of original entry.
 Cash book: The cash book is maintained to record all cash transactions.
 Ledger: This is a chief book of book of accounts or subsidiary records. It
contains the accounts of persons with whom the business is done.
 Subsidiary Ledger :This is a subsidiary book of purchase, sales, sales return
etc...This book is maintained to know the balances of these accounts.
 Audit: Milma conducts internal audits once in every year 3 months. The head
office of milma Calicut appoint internal auditors. For statutory audit, concurrent
audit exist in the organisations. The co-operative department as per the Kerala
State Co-operative Act appoints the auditors.
 Budget: Budgets are prepared once in a year. The financial year is 1st April to
31st March. The budget is prepared by MRCMPU AND sends the head office
for approval. The accounting procedures are carried out in accordance to the
budget.
 Tax: Every year certain amount is paid as tax. The major source of income from
milk sale.

35
 MAIN ACTIVITIES

 MANAGEMENT OF FINANCE
Here the department is entrusted with the function of working capital
management. As part of the financial policy all the long term capital and infrastructure
investment plans and activities are performed at head office level. So the dairy has only
the responsibilities of preparation of annual capital budget of the dairy and submission to
head office for consideration and approval. Under the working capital management the
finance department prepares requirement plans on ten days base and submitted for
arranging fund transfer for meeting the daily requirements of the dairy.
 CASH COLLECTION FROM SALES
The union has adopted policy of sales on cash basis with advance collection method
with the exception of credit with few governmental agencies. The union follows a
centralized cash management system for free movement of fund from dairy to dairy and
to meat requirement of all dairies in time. Head office manages the requirement of all
dairies out of these proceeds based on fund request from dairies.
 PAYMENT TO CREDITORS AND OTHER AGENCIES
They give payment to societies who give milk and all other purchases regarding
about production on ten days basis. Similarly the payment of transport contractors is
made on 15 days basis. The employee related payments are made only monthly basis and
all statutory dues in time. There are occasion of advance payment and payment through
bank.
 MAINTENANCE OF RECORD
As usual the main duty of finance and account department id to maintain accounts
and records. Here in kannur dairy the accounts are computerized with oracle based
financial package. The transactions of dairy and chilling plants are recorded through cash
book, bank book, purchase book, sales book and general journals. In addition to cash
book the chilling plant activities are through imprested system of petty cash and
purchase. The account department also maintains various records that are essential for
statutory audit, income tax audit, sales tax files, service tax files et

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  PREPARATION OF FINANCIAL REPORT
The finance and account departments prepare monthly profit and loss account and are
submitted to the dairy manager and head office. The report elaborates the financial
performance of the dairy during the current and up to the current month, previous month
and budget for the current and previous month. This facilitates the viewers to compare or
evaluate the performance.
 ANALYSIS OF THE FINANCIAL STATEMENT
The finance department of the dairy prepares monthly financial analysis statement
contains details for the major deviation of expenses from the budget as well as the
reasoned there for ascertained for the financial control. It is submitted to dairy manager
as well as managing directors for evaluation. The same is discuses in the review meeting
of the officers at dairy
 FULFILLMENT OF STATUARY OBLIGATION
The dairy has to be fulfilled various statutory obligations. The finance department
perform about sales tax, income tax, work contract tax, service tax, fringe benefit
tax/entry tax etc. the department is responsible for collection of all taxes and giving the
returns before due date, maintain the records for verification etc.
 AUDIT RELATED DUTIES
Finance departments of the dairy is responsible for submitting the the financial
statement, Details, reports, clarification etc to the statutory auditors for audit.
 PREPARATION OF BUDGET
The dairy prepares both revenue and capital budget annually. This department
compiles the various quantitative budgets prepared by difference departments’ .both
capital and revenue budgets are forwarded to the head office for the approval of the
board. After approve the revenue budget is entered in the financial package.

. PROMOTIONAL ACTIVITIES

 Advertisement through TV and other medias.

 Advertisement and board at railway station , bus stand, and other places.

 Consumer awareness programmes

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11: FINDINGS

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 FINDINGS

 Milma is a consumer oriented market

 Every day increasing demand of products

 Recreation facility is comparatively low

 Unlimited benefits are enjoyed by the farmers

 There is a huge scarcity of raw milk in our locality

 There is a financial flow from urban area to rural area

 Wastages are not treated

 Recreation of milk

 Milma products enjoy the reputation of high quality and healthy as all of its
product are made with milk collected from farmers in rural area.
 There is a good corperation among all the department of milma. The milma has
good organisation structure to help things are going smoothly.
 The employees selected in milma are efficient enough to take responsibilities and
challengers and able their maximum achieve organisational goal.

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12:SUGGESTIONS

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 SUGGESTIONS
An overall analysis of milma shows that it has well managed structure, even though
the following suggestions are put forward to increase the functional efficiency.
 Milma should give target achievable training to officers and workers instead of
routine, expensive training especially in marketing wing.
 Milma should concentrate more informative and catchy advertisement of all
products highlighting the product quality.
 Milma should find more market areas for the utilization of their entire production
capacity.
 Milma should introduce more eco-friendly packing method to reduce
environmental pollution.

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13:CONCLUSION

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 CONCLUSION
This Industrial visit gave a greater learning experience to me.During our industrial visit
we are able to accommodate a good knowledge about the organization. The experience of
doing one day of visit and study gave me opportunity to explore in to the areas of
practicable knowledge of management and nature of a company. This organizational study
also showed the important roles played by every single functions of the management.The
Kasaragod dairy there are 4 important departments, that is finance department, production
department procurement & input department marketing department are going very
smoothly.

Kerala is fast moving on the track of achieving self-sufficiency in milk production. The
hike of Rs.13 in milk price effected thrice over the last three years were made in the
interest of farmers, who stood earn an additional Rs.11 per litre that helped the sate to
move faster towards self sufficiency in milk production .

Milma is the present milk marketing leader in Kerala. but in this changing
condition the marketing of milma products has become more challenging as it now faces
several competition from private milk producers and local producers. This entire problem
can be met through professional management approach and target oriented training and
proper planning. So the company should give the attention in ensuring the quality of
products and introduce more promotional activities to overcome the competition.

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14: BIBILOGRAPHY

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 BIBILOGRAPHY
Websites:-

 www. milma.com
 www.ask.com
 www.wikipedia.com
 www.malabarmilma.com

Books & report:-

 Company journals & business magazines.

 Reports & published materials of the company.

Other sources:-

 Direct interaction with the management staff & employees of organisation.

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