analysis of sales and balance confirmation with the distributors

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Little Drops of JoyA

Project Study Report

On

Training Undertaken at

Titled

Analysis of Sales and Balanceconfirmation with the

Distributors

Submitted in partial fulfillment for theAward 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, Jaipur2


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(Affiliated to Rajasthan Technical University, Kota)

ACKNOWLEDGMENT

Success is nourished under the kind of combination of perfectguidance, 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.



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TABLE OF CONTENTS

Executive Summary 5Objective of the Study 6About the Company 7Channel Management 10Distribution System 11Competitors 13

Sponsorship of Sporting Events 18Criticism of Coca Cola 20Mission, Vision & Values of Coca Cola 23Coca Cola- A Brief History 24The Indian Soft Drink Market 28Products of Coca Cola 35Manufacturing Process 48Abbreviation List 54Project 1 56Project 2 62Limitations of the Study 81

Appendices 82Bibliography 83



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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 Distributors.

In the remaining weeks it was all about my major project that was

Analysis of Sales and Account Receivable Process and Reconciliation



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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 units

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, howmany 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?



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A BOUT 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

worlds 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 countrys 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.



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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 countrys

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



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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-baythree-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.



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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 RoutePlan 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'sadvertising 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 thedifference 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 itsbusiness 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



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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 salesdeclined 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.



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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 ofIsrael (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 peoples 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, its 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 inAtlanta, Georgia, on May 8, 1886. Dr. John Stith Pemberton, a localpharmacist, produced the syrup for Coca-Cola, and carried a jug of thenew product down the street to Jacobs' Pharmacy, where it was sampled,

pronounced "excellent" and placed on sale for five cents a glass as a sodafountain 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



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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 inthe 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-Colasales 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 Atlanta1919 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. Indians 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 doesnt 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.

Thats 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

peoples 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 1950s. It set-up four

bottling plants at Mumbai, Kolkota, Kanpur and Delhi.

In 1950s 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 parles

extensive 52 plants bottling network and abase for the rapit

introduction of the companys international brands. This network

independently owned bottles and is Indias 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, freeof 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. Cokes 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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36


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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 remoteand 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 campaignsJo

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.

SIZE OF COCA-COLA

Glass PET Can Fountain

200 ml, 300 ml500 ml,,

2 L, 2.25 L,500 ml + 100 ml

330 ml Various Sizes

Strong Cola Taste, Exciting Personality



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Thums Up is a leading carbonated soft drink and most trusted brand inIndia. Originally introduced in 1977, Thums Up was acquired by TheCoca-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 toseparate the men from the boys.

SIZE OF THUMS-UP


200 ml, 300 ml,500 ml,

2 L, 2.25 L,500 ml + 100 ml


lime n' lemoni Limca , the drink that can casta tangy refreshing spell on anyone, anywhere.Born in 1971, Limca has been the original thirstchoice, of millions of consumers for over 3



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decades.The brand has been displaying healthy volume growths year on yearand 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 hascontinuously 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


200 ml, 300 ml500 ml,

2 L, 2.25 L,500 ml + 100 ml


Worldwide Sprite is ranked as the No. 4 soft drink & is sold in morethan 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

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.

International School of Informatics & Management, Jaipur

GLASS PET Can Fountain

200 ml, 300 ml

500 ml,2 L, 2.25 L,

500 ml + 100ml


41


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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

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.

International School of Informatics & Management, Jaipur


200 ml, 300ml,

500 ml,2 L, 2.25 L,500 ml +100 ml


42


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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 Fountain200 ml,250 ml

125 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 inDelhi & 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-causingcompounds 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 theworking 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

PLANT MANAGERFINANCE

MANAGER

HUMANRESOURCEMANAGER

ASSIT MANAGERASSIT MANAGER ASSIT MANAGER

EXECUTIVESEXECUTIVES EXECUTIVES

TEMP. STAFFTEMP. 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 VoucherOWP - 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 percentBalance Confirmed 337 47.27%

Balance Not-

Confirmed

376 52.73%

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-

Operational

Total

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

nal

Operational

non-

Non-

Operational

Non-

Operational Total



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confirme

d

confirmed confirmed non-

confirmedIn

number

263 196 74 180 713

InPercent

36.89% 27.49% 10.38% 25.25% 100%




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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 companys books and as per their books.

Balance as per their books In NumberSame as per companies books 172

More than the companies books 63Less 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 units 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 distributorcategory 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



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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 customers

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 ASMs

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 thepending orders and cancelled sales order. Pending orders are tracked

and reviewed by the finance executive

New Customer Set Up



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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 bythe 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,



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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.



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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 aregister. 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.



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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 distributors name, and empties quantity

and obtains the drivers 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



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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)



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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

analysis of sales and balance confirmation with the distributors

Documents