Chapter-II

PRADESHIK COOPERATIVE DAIRY FEDERATION – AN OVERVIEW

Development of Dairy in Uttar Pradesh has it own history.

Firstly, milk union was formed in Allahabad in the year 1917. Its

name was kept Kattra cooperative Dairy Committee, Allahabad.

With the establishment of this Committee, Dairy business started

formally in the state. Again after two decade in 1938 in Lucknow

Dairy Products Cooperative Union was established. These two

Cooperative Committee affected the other part of the state.

Therefore, in future Dairy Union were established respectively in

Allahabad (1941), Varanasi (1947), Kanput (1948), Haldwani (1949)

and Meerut (1950). For bringing it at higher level in state no

attempts were done for the Cooperative in Dairy business till 50Th

Decade1. During the 1st and 2nd Five Year Plans Push theorization

plant were established in all Five Dairy Federation except in

Haldwani (Nainital). One more dairy federation was established in

Halmoda 1954. It is clear form this that no special importance was

given to Dairy Federation. Till the end of 2nd Five Year Plan (1961)

from the beginning and till now only Rs. 72.34 lakh was sanctioned

to dairy federation as economic subsidiaries. Thus, Cooperative

Union was established in April 1962 in state for making it at higher

level to strengthen many Dairy Unions. Its name was kept

„Pradeshik Cooperative Dairy Federation‟ keeping in mind the aim to

remove the middlemen from transcription, between productions and

poor villagers economically. And in this way for developing Dairy

Union into powerful subsidiary industry attempts were made in

Uttar Pradesh on state level. Firstly, it worked as an technical

advisory institution.

In new plan of Cooperative Dairy Industry was introduced in

the year 1970-71. The liability of this plan was handed over to

Pradeshik cooperative Dairy Federation. Under this plan Meerut

and Varanasi two dairies respectively of 1-1 lakh liter milk handling

capacity and two animal food factories of 100-100 metric tons

capacity were established. Along with Jurssy cow reproduction unit

was also established in Raibarelly District.

Development programmes started with the help f international

and state Government in 1975. Under this with the economic help

of F.F.H.C. Britan an Uttar Pradesh Government Cooperative Dairy

Federation started a project-“Shankar high bride project in 1977 in

moradabad”. Its main objective is to improve the breed of local cows

and increase the milk production capacity. Pradeshik Cooperative

Dairy Federation is pioneer organization in milk production. While

the clear and rigid objective of P.C.D.F. was to remove the

middlemen from the transaction between producers and consumer.

It main objectives are to increase the production of milk and by-

product of milk2.

In 1976 State Government established an Diary Development

Department and applied an Uttar Pradesh Dairy Act 1976 for

development and importance of Dairy Development Programmes.

Dairy Commissioners post was created. With other authorities

Cooperative Committee Act and under this act prescribed rules

relating to Dairy Cooperative authorities of registrar were given to

Dairy Commissioner. Along with this he was appointed as Head of

the Department and Secretary of State Dairy Council, Dairy

Development got special speed in its programmes with these

facilities in state.

With in a short period of 2 year dairy development has

established 10 centers of 4 thousand liter milk handling capacity

and 2 centers of 2 thousand liter handling capacity daily. This way

total 12 cold storage have been established. These centers re

established in Raebareli, Unnao, Bijanaur, Farrukhabad, Sitapur,

Pratapagadh, Jounpur, Azamgarh, Jalaun, Shahjahandpur, Kot

Dwar, Pittaurghadh respectively. Among these 10 old storage have

been established with Rs. 80 lakh financial help of National

Cooperative Delvelopment Cooperation. Again in 1978 Dairy firm

started in Merrut and in 1979 it stared in Varanasi. After it again in

1979 under Dairy plan Faizabad, a cold storage center was

established there have capacity of 20 thousand liter Dairy handling

per day at cost of 69.59 lakh rupee.

Pradeshik Cooperative Dairy Federation was set up at the

state level as apex body for launching „Operation Flood‟. The

Government of Uttar Pradesh also extended a help hand in setting

up dairies in different districts of U.P. recently Pradeshik

Cooperative Dairy Federation has come up as a governing body for

all the dairies of the state3. The objective of Operation Flood is to

remove, the middlemen between the producers and consumers by

procurement of the milk directly by the producers and consumers

by procurement of the milk directly by the producers through

village co-operative societies. To increase the production of the milk

from milking animals by providing the inputs to the producers. To

arrange the supply of liquid milk in the major cities of U.P.

The aim of 2nd Operation Flood is to run Dairy Industry in 28

districts of the state and to develop it and make it stable on the

basis of Annand pattern and to run that on the Government

Principles. This plan was for 6 year period but it was stopped before

one year in September, 1987. Operation Flood 3rd plan also started.

Its liability is also handed over to this federation. Operation Flood

3rd programme is being completed with the help of Financial

Cooperation of National Development Board4. In this way, it is clear

that Pradeshik Cooperative Dairy Federation has implemented

many programmes after its appearance and it has been hoped that,

this federation will make an effort for the development of Dairy

business in future also.

Pradeshik Cooperative Dairy Federation was set up at the

state level as apex body for launching „Operation Flood‟. The

Government of Uttar Pradesh also extended a help hand in setting

up dairies in different districts of U.P. recently Pradeshik

Cooperative Dairy Federation has come up as a governing body for

all the dairies of the state3. The objective of Operation Flood is to

remove, the middlemen between the producers and consumers by

procurement of the milk directly by the producers through village

co-operative societies. To increase the production of the milk form

milking animals by providing the inputs to the producers. To

arrange the supply of liquid milk in the major cities of U.P.

The aim of 2nd Operation Flood is to run Dairy Industry in 28

districts of the state and to develop it and make it stable o the basis

of Annand pattern and to run that on the Government Principles.

This plan was for 6 years period but it was stopped before one year

in September, 1987. Operation Flood 3rd plan also started. Its

liability is also handed over to this federation. Operation Flood 3rd

programme is being completed with the help of Financial

Cooperation of National Development Board4. In this way, it is clear

that Pradeshik Cooperative Dairy Federation has implemented

many programmes after its appearance and it has been hoped that,

this federation will make an effort for the development of Dairy

business in future also.

Objectives of Pradeshik Cooperative Dairy Federation:

In Uttar Pradesh Dairy Industry is in the form of subsidiary

industry. The farmer of this state adopts this business also along

with agriculture. Therefore, this federation is established in this

state while keeping in view the development of dairy industry. The

main objective of this institution is to give new dimensions to

Operation Flood just like green revolution with the different plans

and programmers of dairy development. In this way following are

the main objectives of federation.

i. Capturing a domination share of the urban milk

market, hither to serve by a multitude of small milk

vendors.

ii. Creating a procurement network to link numerous co-

operative producer societies in different milk shed areas

to the organized urban dairy industry.

iii. Upgrading the milk production of Indian bovine stock

through a programme of cross-breeding, veterinary

services and auxiliary activities.

iv. To facilitate transport, storage and distribution of milk

and milk product.

v. To develop dairy business and industry.

vi. To cooperate in increasing the dairy production.

vii. To facilitate different types of training at rural level for

encouraging dairy industry.

viii. To determined supply of liquid in main of state.

In this way, it is clear that federation has elaborated its

objectives according to the recent time. It should be known that at

the time of establishment its aim was to provide different kinds of

technical help to Dairy5.

Functions of Federation:

It is clear that federation wants to bring Operation Flood just

like Green Revolution through the medium of different plans and

programmes of Federation Dairy Development in state. For this

federation functions are:

i. To establish Primary Dairy Committee and to earn milk

product from it.

ii. To invest in livestock improvement and technique from milk

product better quantity.

iii. To work on different expansion and animal hospital,

artificial impregnation.

iv. To provide finance for purchasing milk giving cattle.

v. To Prepare and implement programmes relating to

development of Sadhan Chara.

vi. To maintain quality of milk and milk products by facilitating

quality control.

vii. To create processing and marketing resources for

facilitating. Pasteurized and qualitative milk marketing in

cities.

viii. To facilitate training at different level for making sound

dairy industry etc.

Along with above functions federation prepares an outline by

future programmes. It clears that this institution is for public

welfare and dynamical. Recently, federation has prepared a future

plan under which the following works have been fixed.

i. Soundness is Dairy Committee under Cooperative

Development Plan.

ii. To expand intensive animal plan and natural animal

procreation plan.

iii. Implementation of intensive fooder development

programmes.

iv. To encourage farmers for producing silk warms.

v. Soundness Jurssy animals Raebareli and soundness of

Himikrit Viar Bank in Moradabad.

vi. To produce developed calves under the foetus

transplantation in indigenous breed.

vii. Coordination for successful implementation of technical

machineries.

viii. Plan for involving two new vaccinations H.S., V.O. for

animals under special component plan.

ix. Agmark proposal for table butter.

x. Plan for selling liquid milk per day 10 lakh liters in coming

5 years.

xi. Modernization of central laboratory.

xii. Women development programme for increasing the

participation of women‟s in Dairy Cooperatives.

xiii. Monitoring, analyzing, technique mission.

xiv. Implementations and suggestions for all level of works.

xv. Development of publicity material, do direct video films.

xvi. Market survey for consumer profile and market share

according to market demand brand relating to coffee-mix,

malted food vanaspati sale.

xvii. Development of products for baby milk cereal food. Lactoj,

hydrolaijed milk and diabetes paritents ice cream etc.

It is clear that Pradeshik Cooperative Dairy Federation is

bringing both quality and expansion of its working area and trying

to provide more and more satisfaction to customers according to the

view of modern marketing. As through federation is mainly attached

to dairy business, but it is suitable also for cooperation in

development of rural economy.

Organizational structure of Pradeshik Cooperative Dairy Federation:

The world „organization‟ originates from the world „organism‟

which means a structure with parts so integrated that their relation

to each other is governed by their relation to the whole. It also

means a system with parts which work together, or a system with

parts dependents upon each other. Organization is the function

upon which the whole structure of management is built.

Organization is related with developing a framework where the total

work is divided into manageable components in order to facilitate

the achievement of objectives or goal. Thus, organization is the

structure or mechanism (machinery) that enables living things to

work together6.

“Organization is the process of identifying and grouping the

work to be performed, defining and delegating responsibility and

authority and establishing relationships for the purpose of enabling

people to work most effectively together in accomplishing

objectives.”

“The establishment of authority relationships with provision

for co-ordination between them, both vertically and horizontally in

the enterprise structure”.

“Organizing is the establishing of effective behavioral

relationship among persons so that they may work together

efficiently and gain personal satisfaction in doing selected tasks

under gives environmental conditions from the purpose of achieving

some goal or objectives7.

It is thus, obvious that organization is a fundamental concept

of management. It is a tool with the help of which pre-determined

goats are achieved. It encompasses all cooperative efforts based on

structural relationships. Organization is not an end it itself. It is a

framework of relationship among the individuals and the positions

the individuals occupy.

Better organization is a base of better management. An

organization is only a source through which manager direct, control

and coordinates its subordinates. Hence, organization increases the

capacity of management. Easy in-delegating authority encourages

human behaviors, encourages specialization, encourages creativity.

Increases moral and this way, provides smoothness in achieving

common goal by increasing efficiency.

The organization structure is also viewed differently by various

authors. Some regard it is a network of relationships, a blue-print

of how the management will like the various functions and activities

to be assigned and connected together. An organization structure

consists of various positions arranged in a hierarchy with a clear

definition of the authority and responsibility associated with each of

these. An organization cannot serve certain specifics purpose or

goals unless some positions are placed above other and given

authority to bind them by their decisions. In fact an organization

structure quite often defined as a structure of authority-

responsibility relationships. An organization structure, it emerges

that an organization is a structure of positions arranged in a

hierarchy for the pursuit of common objectives through

specialization and division of work8.

“Organization structure deals with the overall organizational

arrangements in an enterprise”. It gives “the pattern around which

the detailed administrative relationships should be woven.”

(i) By organization structure we mean the pattern of

network of relationships between the various positions

and the position-holders.”

(ii) The organization structure of the business enterprise is

the basic framework within the executives decisions

making behavior takes place9.”

There is no single best organization structure which could be

considered suitable for all enterprises. The most appropriates

structure depends on different factors in a given situation for a

given enterprises. The types of organization structure may also be

termed as the types of organization. There are five popular types of

organization or organization structure. Like line organization,

functional organization, line and staff organization and committee

organization.

1. Line Organization:

It is the simplest and oldest types of organization. It assumes

direct straight line responsibility and control from the general

manager to the plant manager, to superintendent, to foremen and

to the workers. Line organization has frequently been referred to as

military organization. It is that pattern of organization structure

where authority flows directly from the top to bottom through

various levels10.

There is two types of line organization:

(i) Pure Line Organization:

Under pure line organization the workmen in this type of

organization all perform the same type of work or task. Whatever

departmental divisions, are made, they are made merely for effective

and convenient supervision and management.

(ii) Departmental Line Organization:

Departmental line Organization is one. “In which the

enterprise is divided into departments that, as a role, are not alike

in functions to be performed although some of the departments

might be essentially alike and divided merely to facilitate control.11”

Staff Functional Organization:

Staff organization as “a relationship in an organization

position where an incumbent‟s task is to give some person advice or

control”. The nature of staff relationship is purely advisory. Staff

provides advice, information and assistance to the line manager,

who may accept it or note. The functional organization is based

upon the existence of functional authority in the organization. It is

established by grouping activities of the enterprise into certain

major functional departments. Under this system, the whole task of

management and direction of subordinates is divided according to

the type of work involved, and thus, the scope of the work is kept

limited but the area of authority is left unlimited.

Functional organization refers to the organization which is

divided into a number of functions such as finance, production,

sales, personnel, office and research and development and each of

the functions are performed by as axpert12.

Line and Staff Organization:

The line system concentrates control too much; the functional

plan divides it too much. The need was, therefore, for a system that

will strike a happy balance between the two. This need was fulfilled

by t he line and staff system of organization. Under this system,

the staff organization does not exist independently, but a body of

experts is employed more or less permanently to assist the line

officials. Thus, staff makes investigations, collects information,

chalks out plans and prepares schemes. The line officials select the

best scheme and gives instructions accordingly.

“Line and staff organization came into being as a result of

inability of the departmental managers to investigate, think and

plan at the same time, as they were performing the ordinary tasks

of production and selling. A clear demarcation between „thinking‟

and doing the staff being the thinkers‟ and the line being the

doers13.

Committee Organization:

Some authorities take committee organization as one of the

types of organization, but it is not wholly correct. As a matter of

fact, it is supplementary to the line or line and staff types of

organization. “A Committee consists of a group of people specially

designated to perform some administrative acts. It functions only as

a group and requires the free exchange of ideas among its

members.”

The need for Committee arises from the fact that one

individual is not capable of handling all the complex problems

effectively, especially in a big organization. He has to take the help

of other in understanding and solving the problems. It has been

rightly pointed out that “A Committee is a tool for the development

of ideas and recommendations of policy and procedure. It is a

means whereby ideas can be pooled and offered for criticism. It is

the strong right arm of a tactful administrator who realizes the

importance of getting his people to work to ether in the solution of

their own problems14”.

Establishment of any special form of organization depends

upon its objectives and size of organization, performance of

directions in institutions, difficulties of managerial work, social and

human needs, departmentation in organization, policies of

managers, efficiencies and capacity of higher manager, and

competitive situations size of market, customs and traditions, post

equality, expansion of control etc. Pradeshik Cooperative Dairy

Federation organization structure is a mixed organization structure.

In Pradeshik Cooperative Dairy Federation one side functional

organization structure is adopted. This statement will be cleared by

figure 2.1. As far as it is related to Cooperative Dairy Federation its

functions execution is under the control of administration of Uttar

Pradesh, Agriculture and Cooperative Ministry. Its head office is

established in the capital of Uttar Pradesh that is Lucknow.

Federation Management and administration work is done from

Lucknow. Flow of both horizontal and vertical organization

structure is present in federation. There is an administrative

committee at high level in organization. Under which chairman,

Managing Director, Chief General Manager stand respectively. They

cooperate Chief General Manager in different departmental

managers. Here we present a brief analysis of Pedration

Organization structure.

Figure 2.1: Organization Structure of P.C.D.F.

Board of Directors/Administrative Committee

Chairman Administrator

Managing Director

Chief General Manager

Divisional heads

(Special Programmes) Managers

Manager

administr

ation

Manage

r

Produc

er

Marketi

Manage

r

Finance

Accoun

ts

Manage

r

Quality

Control

Manage

r

Procure

ment

Project

Engine

ering

Operati

on

Service

Divisio

n

Inspection Special Projects Society Training R& D

Pradeshik Cooperative Dairy Federation has ten divisions. Every

division has managers and who are responsible to General

Manager, General Manager of every division are responsible to Chief

General Manager who is in turn responsible to Managing Director.

1. Administrative Committee/Board of Director:

According to company Act sec. 2(13) “Director means any

person occupying the position of a director, by whatever name

called”.

Company Act Sec. 303. “Any person in accordance with whom

instructions the board of directors of a Company is

accustomed to act shall be deemed to be a director of a

company.

According to Sec. 252 (3) “The directors of Company

collectively are referred to in the Act as the board of Director or

Board15.”

Administrative Committee is the supreme institutions.

Through this Committee Board of directions are organized. This

board of directors prepares the policies at higher level and

performer of applying function in the institutions. In this way,

Federations Board of directors works for General Managers,

direction and control. On the basis of 2000-01 Annual Report there

is one Chairman and 8 members in Board of Directors for the help

of Chairman one of the member of the member is made as Vice-

Chairman, Generally Ministry level person are appointed as

Chairman post. In this way for Vice-Chairman Post Agriculture

Production Commissioner is appointed. Member appointed for

Board of Directors are appointed on the following basis.

Dairy Secretary Development Uttar Pradesh, Government,

Lucknow.

Producers Co-operative Dairy Union Ltd. Varanasi.

Chairman Dairy Producers Co-operative Union Ltd. Varanasi.

Chairman, Bullanadha City Dairy Producer Co-operative

Union Ltd.

Resident Representative National Dairy Development Board,

New Delhi.

Programme Co-operative, N.D.D.V., P.C.D.F. Ltd. Lucknow.

Managing Director, P.C.D.F. 28 Park Road, Lucknow.

In Board of Directors Chairman is the administrator head.

Under chairman only all administrative policies ascertained and

programmes are prepared on state level only. Not only this, but also

the chairman facilitates for better control16.

Managing Director:

According to company Act. See. 2(26) “Managing Director a

“director who, by virtue of an agreement with the Company or

resolution passed by the company in general meeting or by its

Board of Director or by virtue of its Memorandum or Article of

Association is entrusted with special powers of management which

would not otherwise be exercisable by him and include a director

occupying the position of a managing directors, by which ever name

called.”

Thus, it is clear that a managing director of a company is one

of the directors who is entrusted with substantial powers of

management which he wouldn‟t ordinarily be exercising as a

director. A managing director service personnel of the company. He

is to act under the direction, supervision and control of the Board of

Directors17.

Therefore, managing director is an important person of any

institution who takes important decisions for the interest of

institutions. Under Pradeshik Cooperative Dairy Federation.

Organization structure managing director works under chairman.

He performs only that works which are given him by the Board of

Directors.

3. Chief General Manager:

Chief General Manager stand on third position in Pradeshik

Cooperative Dairy Federation organization structure. It means that

he is liable for management. All department managers are under

his direct control. Chief General manager performs as a director

and controller of all departmental managers.

(a) Administration: Administrative general manager is liable or

administrative work of a federation. Two departments are

under General Manager. Firstly- Administrative, Secondly –

Staffing. In this way he applies administrative decisions and

programmes and lastly keeps control on administrative

decisions and programmes and lastly keeps control on

administrative work. Along with this, directs selection of

employees, training and etc. administrative works.

(b) Finance: General Manager (finance) plans for financial

work, direct and control. Three departments are under

General Manager (Finance) (i) Finance Manager, (ii) Payment

Communication and (iii) Account Manager. In this way,

whole responsibility of finance is in the hands of Finance

General Manager.

(c) Procurement and Technical Inputs: This manager is liable

for plans relating to Dairy procurement and technical inputs

and direction and implementation in federation. Along with

this manager has technical inputs responsibility. Two

department are under this, the manager – Dairy

Procurement and Farmer Organization and Technical

Inputs.

(d) Operation: This manager is responsible for production plan,

monitoring and controlling. Two departments are under

General Operation Manager (i) Production and Monitoring

Plan and (ii) SMG (State Milk Grid) and NMG (Nation Milk

Grid) Supply Plan.

(e) Quality Assurance: This charger also works under Chief

General Manager like other General Manager. Its work is

related to control quality of products. It main work is to

control quality of produce for satisfaction of customers.

(f) Marketing: Marketing General Manager is also under Chief

General Manager. Its work is related to marketing planning

and implementations. Two departments are under

marketing (i) Dairy Products Marketing and Monitoring and

(ii) Liquid Dairy Marketing and Monitoring.

(g) Management Service Division (MSD): This manager also

works under Chief General Manager like other managers.

Two departments are under it (i) Cooperative Planning and

(ii) N.I.S. This way this manager is related with the whole

institutions planning work.

(h) Engineering: Engineering General Manager is liable for

engineering work of federation. Two departments are under

it (i) Project Engineering and (ii) Maintenance Engineering.

This way its main function is to maintain engineering.

(i) Material Management Department (M.M.D.): This

manager is responsible for materials manager. This way it is

related to purchasing management and inventory

management. Two departments are under it (i) Central

Executed Purchase Management and (ii) Inventory Control.

Both the departments performs the determined works under

their General Manager.

(j) Research and Development: Research and development is

unavoidable for any institutions progress in today‟s

technical age. Federation has made an separate department

at central level. There is one acting person to perform this

work. Research and development work is done by the

charger for institutions progress.

(k) Electronic Data Processing (E.D.P.) : Electronic Data

Processing analysis the information and develops systems

for effective communication. Two departments are under

Electronic Data Processing charger Data Processing and

System development.

Special Programmes: It should be known that cooperative

dairy federation mainly does dairy business. But along with this

other special programmes are also started. Through which rural life

is developed. There is an individual department for this. This

department has an charge. Special programmes are applied on its

supervision and control. There is 4 sub-departments – Inspection,

Special Project, Society Training and Research and Development.

Programmes. 4 sub-Department under Special Project like –

technology Mission, Co-operation Division, U.P. Women, Dairy

Project & Financial Assistance of milk Animals.

This is clear that Pradeshik Co-operation Dairy Federation has

prepared an well managed organization structure for its pre-

determined objectives. Not only this, but also federation has divided

different departments and sub-departments of whole functions for

efficient performance. For Carrying out the whole programmes

successfully and for proper planning implementation, follow up,

monitoring etc. an effective organization structure is still at work.

Execution of Financial Function:

Analysis of financial activities is an indicator of enterprise

profitability and effectiveness. Along with this we come to know

about financial management capability enterprise owner policy

former. Employees and eternals get the knowledge of their

enterprise efficiencies. With this institution other work like,

planning, production, manpower management and marketing

decisions are also effected. Policy formulation and managerial

efficiency is attached at higher level with finance analysis in modern

age. In this part of the chapter we will discuss the execution of

financial functions of Pradeshik Co-operative Dairy Federation.

Financial performance analysis reveals the profitability

position and effectiveness of an enterprise as also the efficiency of

its financial management. It thus helps in understanding the

soundness of the enterprise to the owners, policy makers,

employees and the outside publics. The other activities, such as,

production planning, human resources management and marketing

decisions are highly influenced by the utilization of funds. The

Pradeshik Co-operative Dairy Federation a state Government

enterprise, has employed a huge capital in order to perform is

activities in an effective and better way. In this section, an attempt

has been made to evaluate the financial performance of the

Pradeshik Co-operative Dairy Federation in relation to the amount

of capital, reserve and supplies, borrowing assets etc.

Share Capital:

The main divisions of share capital are:

(i) Authorized or Nominal or Registered Capital:

The amount of capital with which the Company intends to be

registered is called registered capital. It is the maximum amount

which the Company is authorized to raise by way of public

subscription. There is no legal limit on the extent of the amount of

authorized capital.

(ii) Issued Capital:

The part of the authorized capital which is offered to the

public for subscription is called issued capital.

(iii) Subscribed Capital:

It is that part of the issued capital for which applications are

received from the public and subsequently allotted to the applicants

by the directors of the Company. The quantum of issue whether

through a right or public issue, shall not exceed the amount

specified in the prospectus/utter of offer. Retention of over

subscription not allowed under any circumstances.

(iv) Called up Capital:

The amount on the shares which is actually demanded by the

Company to be paid is known as called up capital.

(v) Paid up Capital:

The part of the called up capital which is offered and is

actually paid by the members is known as paid up capital. The sum

which is still to be paid is known as calls in arrears. Paid up capital

is the amount which is to be added to the total of the liabilities side

as it is the actual capital which is received shareholders.

(vi) Reserve Capital:

A company determines by, a special resolution that any

portion of its share capital which has not been already called up

shall not be capable of being called up except in the event of

winding up of the Company. Such type of share capital is known as

reserve capital.

Table 2.1

Year State Top

instituti

on

Dairy

federati

on

From

Primary

Cooperati

ve dairy

federatio

n

Total Index

No.

Base

year

(1990-

91)

100

1990-91 1548.79

(-)

2.50

(-)

43.51

(-)

.23

(-)

1593.0

3

(-)

100

1991-92 1847.26

(19.27)

2.50

(0.00)

43.52

(0.02)

0.23

(0.00)

1893.51

(18.71)

119

1992-93 1889.08

(2.26)

2.50 (0.00)

43.52

(0.00)

0.23 (0.00)

1935.33

(2.21)

121

1993-94 1975.07

(4.55)

2.50

(0.00) 43.52

(0.00)

0.23

(0.00) 2021.32

(4.44)

126

1994-95 2293.77

(16.13)

2.50 (0.00)

43.53

(0.02)

0.23 (0.00)

2340.03

(15.76)

146

1995-96 2621.72

(14.29)

2.50 (0.00)

43.65

(0.27)

0.23 (0.00)

2668.1

(14.02)

167

1996-97 3022.26

(15.27)

2.50

(0.00) 43.65

(0.00)

0.23

(0.00) 3068.64

(15.01)

192

1997-98 3458.37

(14.43)

2.50 (0.00)

114.40

(162.08)

0.23 (0.00)

3575.5

(16.52)

224

1998-99 3933.37 2.50 (0.00)

124.41 0.23 (0.00)

4060.51 255

(13.73) (8.75) (13.36)

99-2000 4380.60

(11.37)

2.50 (0.00)

124.91

(0.40)

0.23 (0.00)

4508.24

(11.03)

283

2000-01 1585.07

(-63.81)

2.50

(0.00) 124.91

(0.00)

0.23

(0.00) 1712.71

(-62.01)

107

2001-02 1285.07

(-18.93)

2.50 (0.00)

124.91

(0.00)

0.23 (0.00)

1412.71

(-17.52)

89

2002-03 1212.06

(-5.68)

2.50 (0.00)

124.91

(0.00)

0.23 (0.00)

1339.7

(-5.17)

84

Table 2.1 shows trends in the share capital of Pradeshik Co-

cooperative Dairy Federation during 1990-91 to 2002-2003. It is

evident that the share capital has a paramedic growth. IN the initial

years the share capital witness encouraging growth as a result by

the year 1999-2000. The share capital recorded three times growth

from Rs. 1595 lakhs in 1990-91 to Rs 4508 lakhs in 1999-2000.

From 2000-2001the share capital started declining with result that

it came down to the lowest level of Rs. 1340 lakhs in 2002-2003.

The annual rate of growth in share capital also presented

fluctuating trend.

The share capital of the federation is contributed by the State

Government, Financial Institution, Dairy federation and Primary

Cooperative Dairy Federation. In the year 1990-91 State

Government contributed to about Rs. 1549 lakhs in the year 1999-

2000. There after the contribution of the state Government started

declining consequently by the year 2002-2003 the share capital of

State Government came to the lowest level of Rs. 1212 lakhs. There

are other contributors of share capital of Pradeshik Co-operative

Dairy Federation among them Dairy Federation and Financial

Institution are important. The contribution by financial institutions

has been contact through out the period uder study. The

contribution of Dairy Federation. During the period in the study

recorded about three fold increase from Rs. 43.52 lakhs 1990-91 to

Rs. 124.91 lakhs in 2002-2003. The contribution of Primary Co-

operative Dairy Federation has been constant during the period

under study.

In this way, it is obivious that State State Government is the

only main shareholders of Pradeshik Co-operative Dairy Federation.

But its share is being declining because the institution is self-

sufficient to fulfill its needs.

Table 2.2: Relative Shares of Contributor’s P.C.D.F.’s Share Capital (Share in %) Year State

Government Top Institutions

Dairy Federation From Primary Co-operative Dairy fed.

Total

1990-91 97.10

0.16 2.73 0.01 100

1991-92 97.56

0.13 2.30 0.01 100

1992-93 97.61

0.13 2.25 0.01 100

1993-94 97.71

0.12 2.15 0.01 100

1994-95 98.02

0.11 1.86 0.01 100

1995-96 98.26

0.09 1.63 0.01 100

1996-97 98.49

0.08 1.42 0.01 100

1997-98 96.72

0.06 3.19 0.01 100

1998-99 96.87

0.06 3.06 0.01 100

1999-2000 97.17

0.06 2.77 0.01 100

2000-2001 92.55

0.15 7.29 0.01 100

2001-2002 90.996

0.18 8.84 0.01 100

2002-2003 90.471 0.19 9.32 0.01 100

Source: Table2.1

Comparative Shares of Contributor’s in Share Capital of P.C.D.F. (share in %):

Table 2.2 indicates the share of State Government, Top

Financial institutional, Dairy Federation and Primary Co-operative

Dairy Federation in share capital. It is clear by analyzing the table

that State Government has the highest share in total share capital.

State Government share shows the fluctuating trend. In the year

1990-91 it has 97% which reduced in the last year of the study

period that is year 2002-2003 it reduced in 90%. Because they are

self sufficient for capital. Therefore, Government share has been

reduced. And the Primary Co-operative Dairy Federation share has

the lowest contribution that was 0.01%. And Dairy Federation and

Top Institutions are 9.32 and 0.19 respectively. The fluctuating

trend is shown in State Government and Dairy Federation. But top

institution and Primary Co-operative Dairy Federation show almost

constant trend. In the year 1990-91 top institutions shows 0.16%.

But it increased in the last year of the study period that was 2002-

2003. But Dairy Federations also shows fluctuating trend like State

Government. As a result in the year 1990-91 it was 2.73% share in

total of share capital. And it shows increase decrease in different

rates and at last year of the study period 2002-2003, it was 9.32%,

so it has increased its share in total share capital.

Reserve and Surplus:

Reserve is an part of or share of profit. This is kept for unexpected

circumstances in future emergencies. Along with this it is also kept

for future losses, maintenance, rationalization innovations etc. It is

of two types: Revenue Reserve and Capital Reserve. The amount

which is transferred to reserve from the earned.

Table 2.3: Reserve and Surplus of P.C.D.F. (in Lakh Rs.) (%

inc/dec in bracket)

Year Share

Capital for

Again Payment

Building

Fund

Live

Stock

Fund

Developme

nt discount

fund

Land

fund

Total Index

No.

1990-91

1990-91 - 8.28

(-)

5.93

(-)

10.49

(-)

5.12

(-)

29.82

(-)

100

1991-92 - 11.95

(44.32)

5.93

(0.00)

10.49

(0.00)

5.12

(-)

33.49

(12.30)

112

1992-93 - 8.12

(-32.05)

5.93

(0.00)

10.49

(0.00)

3.42

(0.00)

27.96

(-16.51)

94

1993-94 402.3

(-)

4.45

(-45.19)

5.93

(0.00)

10.49

(0.00)

3.42

(-

33.20)

426.35

(1424.85

)

1430

1994-95 402.36

(0.00)

4.45

(0.00)

5.93

(0.00)

10.49

(0.00)

3.42

(0.00)

426.35

(0.00)

1430

1995-96 402.36 (0.00)

4.45 (0.00)

5.93 (0.00)

10.49 (0.00)

3.42 (0.00)

426.35 (0.00)

1430

1996-97 402.36

(0.00)

- - - - 402.36

(-5.62)

1349

1997-98 402.36

(0.00)

- - - - 402.36

(0.00)

1349

1998-99 - - - - - 920.57

(128.79)

3087

1999-

2000

- 4.45

(0.00)

5.93

(0.00)

- - 10.08

(-98.90)

34

2000-2001

- 4.45 (0.00)

5.93 (0. 00)

10.49 (0.00)

3.42 (0.00)

23.99 (137.99)

80

2001-

2002

- 4.45

(0.00)

5.93

(0.00)

10.49

(0.00)

3.42

(0.00)

23.99

(0.0)

80

2002-

2003

402.36

(0.00)

4.45

(0.00)

5.93

(0.00)

10.49

(0.00)

3.42

(0.00)

426.35 (1677.19)

1430

Source: Compiled Annual Report of P.C.D.F., Lucknow.

Profit is called Revenue Reserve General Reserve. In other

hand Reserve kept for compensating future capital loss from capital

profit is called Capital Reserve.

Pradeshik Cooperative Dairy Federation has kept many funds

relating to general reserve and surplus. Different funds or reserves

are maintained for different objectives. Federation has maintained

five funds in relation to General reserve and Surplus for different

purpose.

Following are those:

i. Share Capital for again Payment.

ii. Building fund.

iii. Live Stock Fund.

iv. Development Discount Fund.

v. Land fund

Table 2.3 presents the General Reserve and Surplus of

Pradeshik Cooperative Dairy Federation. It is clear by analyzing this

table that Federation‟s Development role increases – decreases.

In the year 1990-91 Federation‟s total General Reserve and

Surplus was Rs. 30 lakh which increased to Rs. 33 lakh in the year

1991-92. After which it shows constant result continuously in the

year 1993-94, 1994-95 and 1995-96 that was Rs. 426 lakh

respectively. After that it reduced to Rs. 402 lakh in the year 1996-

97 in comparison to previous year which continued in the next year

1997-98. But after that total General Reserve was Rs. 921 lakh

which was the highest during the stud period. But just after that it

reduced to Rs.10 lakh which reduced to 99% in comparison to

previous year. But after that it presents increasing trend. In last

year of study period 2002-2003 total Reserve and Surplus increased

to Rs. 426 lakh again which increased 1677% in comparison to

previous year.

By analyzing this table it is clear that federation has kept

reserves according to their different necessities. Different funds

amount fluctuate in different ration in different years of the study

period. The point which is to be noted that development discount

fund remains constant in complete study period. And also it shows

nil in few years those are 1996-97, 1997-98, 1998-99, 1999-2000.

In case of building fund, in the year 1990-91it was Rs. 8 lakh. But

after that it increased to Rs. 12 lakh approximately in the year

1992-93. Then in the next year it reduced to Rs. 8 lakh which was

32% decrease. But after that upto the last year of the study period

it remains constant on more than Rs. 4 lakh. Same way land fund

also shows the same condition that in the beginning of the study

period 1990-91land fund was Rs. 3 lakh. Live Stock Funds shows

the constant result in the complete study period, and same thing

with share capital used for payment is also constant in the whole

study period.

Table2.4: Share of Contributories in General Reserve and Surplus of P.C.D.F. Year Share

Capital for

again Payment

Building

Fund

Live

Stock

Found

Developme

nt

Discount Fund

Land

Fund

Total

1990-91 - 27.76 19.88 35.17 17.16 100

1991-92 - 35.68 17.71 31.32 15.29 100

1992-93 - 27.10 21.21 37.52 12.23 100

1993-94 94.37 1.04 1.32 2.46 0.80 100

1994-95 94.37 1.04 1.32 2.46 0.80 100

1995-96 94.37 1.04 1.32 2.46 0.80 100

1996-97 100 - - - - 100

1997-98 100 - - - - 100

1998-99 - - - - - 100

1999-2000 - 44.15 55.85 - - 100

2000-2001 - 18.54 23.46 43.73 14.26 100

2001-2002 - 18.54 23.46 43.73 14.26 100

2002-2003 94.37 1.04 1.32 2.46 0.80 100

Source: Table 2.3

Table 2.4 indicates the share of different funds contribution in

total general reserve and surplus. It is clear by analyzing this table

that share of different funds changes time to time share capital for

again payment has highest share in total General Reserve. This

fund was not established upto the year 1992-93. This fund was

established in the year 1993-94. So its share in total General

reserve was 94% in the year 1993-94 which remains constant upto

the year 1995-96. But after that it increased to 100%. Share in total

General Reserve and Surplus and maintained it in the year 1997-98

also. But after that this fund has nil balance. But again in the year

2002-2003 it increase to Rs. 94%.

Development Discount Fund maintains second position. In the

year 1990-91 it was Rs.35% which reduced in the year 1991-92

which was 31% in total General Reserve and Surplus. But again it

increased to more than 37% in the year 1993-94 which was 2%

which remained constant upto the year 1995-96 and was nil from

the year 1997-98 upto 1999-2000. But in the year 2000-2001 it

increased to 44% which continue in the next year. But again it

reduced to more than 2% in the year 2002-2003.

Live Stock Fund in the third important fund. Its share also

fluctuates in the study period of 1990-91 to 2002-2003. In the year

1990-91 its share was 20% out of total General Reserve and

Surplus. But in the next year 1991-1992 its share reduced to 18%,

which again increased in the year 1992-93. It means its share

increased to 21%. But again it reduced to 1% which remained

constant upto 1995-96. And was nil upto 1998-99. After that its

share increased to 56%. And then again it started declining and at

last it came to 1% share in total General Reserve and Surplus.

And lastly comes Building Fund, whose share in total General

Reserve and Surplus in the year 1990-91 was 28% which increased

to 36% in the next year 1991-92, which again reduced to 27% and

in next year again it reduced upto 1% which remains constant upto

1995-96 and after that it became nil upto 1998-99. But in the next

year 1999-2000 its share increased to 44%. Then again it reduced

in the next year 2000-2001 which was 19%, which remained

constant in the next year. But in the next year 2002-2003 its share

reduced to 1%. It is clear by analyzing this table that Federation‟s

General Reserve and Surplus shows on fluctuating and in some

funds constant trend. But in last year of the study period it

reduced. This shows that as other funds share increases these

funds share decreases and viz. versa as other funds decrease these

funds share increases.

Grants and Assistance:

From few years, attention is paid for the development of Dairy

Unions in the country and for effective development different

Government and central Government and some International

Financial Institutions gives them economic support in the forms of

Grants and Assistance. Pradeshik Cooperative Dairy Federation are

also provided this type of financial help as in the form of Grants

and Assistance.

Table 205 presents the total Grants and Assistance of

Federation. From the help of this table we can say that its amount

of Grants and Assistance shows an fluctuating tends. In year 1990-

91 federation has received Rs. 523 lakh as Grants and Assistance

which increased to 35% in the year 1991-92. It increased upto the

year 1992-93 that was Rs. 836 lakh which was 18% in comparison

to the pervious year. But in the year 1993-94 it reduced upto Rs.

769 lakh in comparison to previous year that was about 8% and

again in the next year 1994-95 also reduced to Rs. 553

Table 2.5: Total Grants and Assistance of Federation

Year Total(In lakh)

Increase/ decrease

Comparative (%)

(Base Year 1990-91)

Index Numbers

1990-91 522.64 - 100

1991-92 707.16 35.31 135

1992-93 835.95 18.21 160

1993-94 768.76 -8.04 147

1994-95 552.54 -28.13 106

1995-96 617.48 11.75 118

1996-97 257.22 -58.34 49

1997-98 600.19 133.34 115

1998-99 NA NA NA

1999-2000 882.43 (0.00) 169

2000-2001 731.89 -17.06 140

2001-2002 637.64 -12.88 122

2002-2003 233.85 -63.33 45

Source: Complied Annual Report of P.C.D.F., Lucknow.

Lakh, which reduced upto 28% in comparison to previous

year. But in the year 1995-96 it increased to Rs. 600 lakh. It

continues upto the year 1999-2000 that was Rs. 882 lakh, but after

that it started reducing upto the study period. And in the year

2000-2001 it reduced to Rs.732 lakh which was 17% in comparison

to previous year. At last in the year 2002-2003 as the last year of

study period it was Rs. 234 lakh. So, it shows the decreasing rend

in the study period as compared to the previous years.

Deposits and Securities:

Pradeshik Cooperative Dairy Federation‟s gets deposits and

securities by different sources. Deposits and securities are the

indicator for success of business and working efficiency of any

institutions. On the other hand, it is also an guideline for knowing

the financial soundness of any institutions. The main source of

federation for deposits and securities are securities of parties,

public deposits, dairy unions, agents, committee, employees

deposits etc. along with this all, deposits are received from

contractors, suppliers also.

Table 2.6: Deposits and Securities of P.C.D.F.

Year Deposits and

Securities (In lakh)

Increase/Decrease

Comparative (%)

(Base Year 1990-91)

Index Numbers

1990-91 818.66 - 100

1991-92 34.62 -95.77 4

1992-93 43.70 26.37 5

1993-94 53.89 23.18 7

1994-95 88.32 63.89 11

1995-96 101.89 15.25 12

1996-97 192.17 88.89 23

1997-98 203.76 6.03 25

1998-99 311.37 52.81 38

1999-2000 444.88 42.88 54

2000-2001 511.14 14.89 62

2002-2003 109.23 -78.63 13

2003-2004 100.59 -7.91 12

Source: Complied Annual Report of P.C.D.F., Lucknow

Table 2.6 indicates the Federation‟s total amount of deposits

and securities. It is clear by analyzing this table in the study period

of year 1990-91 to 2002-2003 that it has increased to 0.12 times.

Index of 2002-2003 was 12 as taking the base year as 1990-91. In

the year 1990-91 its total amount of deposits and securities and

securities were approximately Rs. 819 lakh which decreased in the

year 1991-92 upto Rs. 35 lakh which was reduced to 96% in

comparison to the previous year. Again in the next year 1992-93 it

increased to Rs. 44 lakh and gradually the continuous way it

increased in the year 1993-94, 1994-95, 1995-96, 1996-97, 1997-

98, 1998-99, 1999-2000 and 2000-2001 that are Rs. 54 lakh, Rs.

88 lakh and Rs. 511 lakh respectively. But increase rate was not in

a same ration it shows the fluctuation trend like in the year of

1993-94, 1994-95, 1995-96, 1996-97, 1997-98, 1998-99, 1999-

2000, 2000-2001 were 26%, 23% 64%, 15%, 89%, 6%, 53%, 43%,

and 15% respectively. And in the next year 2001-2002 it reduced to

Rs. 109 lakh that was reduction of 79% in comparison to the

previous year. Again in the year 2002-2003 it reduced to Rs. 101

lakh that was 8% in comparison to previous year. It reduced to Rs.

101 lakh that was 8% in comparison to previous year. It means it

has decreasing. But has reduced the decreasing rate means that

Federation in still trying to improve.

It is clear by analyzing this table that it shows fluctuating trend in

the year 1990-91 to 1991-92. But again in the year 1992-93 upto

2000-2001 it shows increasing trend. But again from the year

2001-2002 it shows decreasing trend. But the speed of reduction

reduced in the next year 2002-2003. As it started decreasing in the

end of study period due to same reason. But in the last year it

maintained it. It reduced upto 8% only in comparison to the

previous year. It shows fluctuating trend because there was

fluctuation in the amount of securities of different parities Dairy

Unions, Dairy agents and Committees.

Loan on Securities an Advances:

Like other institutions Pradeshik Cooperative Dairy Federation

also take loans. Federation‟s loan as short loan and long term loans

sometimes loan are taken for some specific purpose loan were taken

by the banks. Government also gives loan to the Federation. Other

financial institutions are also gives loan to federation. In these way

different sources also gives them advances. Banks providing loans

to federation re State Bank of India, Uttar Pradesh Cooperative

Banks, Syndicate Banks and Bank of Baroda.

Table 2.7: Loan on Securities and Advances of P.C.D.F.

Year Total Loans on Securities

and

Advances (In lakh)

Increase/ decrease

Comparative %)

(Base Year 1990-91)

Index Numbers

1990-91 1019.39 - 100

1991-92 2136.63 95.77 165

1992-93 2299.74 1.08 211

1993-94 2815.90 22.44 258

1994-95 3488.84 23.89 320

1995-96 3369.08 -3.43 309

1996-97 1882.83 -44.11 173

1997-98 118.17 -93.72 11

1998-99 272.51 130.61 25

1999-2000 274.07 0.57 25

2000-2001 480.54 75.33 44

Source: Complied Annual Report of P.C.D.F., Lucknow.

Table 2.7 shows loans on securities and Advances of

Federation. It is clear by analyzing this table that in the study

period of 1990-1991 upto 2000-2001 it increased to .44 times. Total

amount of loans and advances were Rs.1091lakh in the year 1990-

1991 which increased to more than Rs.2136lakh which was 96% in

comparison to previous year. Therefore this period of study shows

incase of 2 times approximately. In the year 1992-93 it increased to

more than 1% and again in the next year 1993-1994 it increased

more than the previous year that was more than 22% and again in

the year 1994-1995 it increased to more than 23% in comparison to

previous year. But in the next year 1995-96 it reduced to

Rs.3369lakh that was decrease of 3% and there was continuous

decrease. Gradually in the yea 1996-1997 and 1997-98 that was

44% and 94% respectively. Again in the year 1998-99 it increased

to more that 130% in comparison trend of increase upto the last

year of the study period that was year 2000-2001. In this way there

was Rs.481lakh of loans and advances of federation.

By analyzing this table it clear that Pradeshik Cooperative

Dairy Federation‟s loan on Securities and Advances total amount

during the study period of 1990-91 upto 2000-2001 shows the

three fold trend that from the year 1990-91 upto 1994-95 it shows

the increasing trend. But from the year 1995-96 upto 1997-98 it

shows the decreasing trend. But again form the year 1998-99 upto

2000-2001 it shows increasing trend but in different of increase or

decrease.

Fixed Asset:

Fixed assets refers to those assets which are held for

continued use in the business for the purpose of producing good or

services and are not meant for resale. Economical resources are

presented by fixed asset. It is very important for any institution.

Knowledge of purchasing power and future profit can be known by

it. It can be divided into four parts-Fixed Asset, Current Asset,

Investment and Other Assets. Fixed assets are long term asset. It is

for more that the time period of accounting and it is used for

business not for sale. Pradeshik Cooperative Dairy Federation‟s has

different types of fixed assets like land, building, plant and

machinery, furniture and fixture, milk tankers, milk booth, tools

and equipment, books and magazines etc.

Table 2.8 clears the fid assets of Pradeshik Cooperative Dairy

Federation‟s. In the study period form 1990-91 to 2002-2003 it has

increased to less than 1 times. In the year 2002-2003 its index is

64 whose base year was 1990-91.

It is clear form the table that in the year 1990-91 its total fixed

asset was Rs.351lakh which decreased in the next year 1991-92

that was upto 66% that was Rs.118lakh. Again in the year 1992-93

there was less decrease in comparison to pervious year that was

only 21%. But after that table shows the continuous increase in the

Federation‟s Fixed Asset. And that was upto 1998-99. But again in

the year 1999-2000 it started

Table 2.8: Fixed Assets of P.C.D.F.

Year Fixed Assets

(in lakh)

Increase/ decrease

Comparative (%)

(Base year 1990-91)

Index Number

1990-91 350.74 - 100

1991-92 118.11 -66.32 37

1992-93 92.90 -21.34 26

1993-94 267.14 187.56 76

1994-95 319.44 19.58 91

1995-96 385.55 20.69 110

1996-97 511.12 32.57 146

1997-98 544.59 6.55 155

1998-99 579.10 6.34 165

1999-00 378.07 -34.49 108

2000-01 247.25 -34.49 71

2002-03 240.25 -2.99 68

2002-03 223.55 -6.95 64

Source: Complied Annual Report of P.C.D.F., Lucknow.

Declining upto the last year of the study period that was 2000-

2003. Therefore, it is clear form the study of this table that

federation shows three fold system that form the beginning of the

study period that was 1990-91 upto 1992-93 it shows the declining

stage. But after that form the year 1993-94 upto 1998-99 it shows

the increased stage. And again form 1999-2000 upto the last 2002-

2003 it shows the declining trend. So we can say that Federation‟s

Fixed Asset is fluctuating.

Current Asset:

Currents assets are those assets which are meant for sale or

which the management would want to convert into cash within one

year. As such these assets are also termed as „short-lived or active

asset‟. For example „Debtors‟ are expected to be converted into cash

within a reasonable short period, stock is continuously sold and

bills receivables are also converted into cash. The current assets are

usually defined as those assets which are convertible into cash

through the normal course of business with in a short time

ordinarily in a year. Current assets are of two types-liquid or

convertible assets.

Current assts includes cash, bills receivable, short-term

investment, debtors, prepaid expenses, accrued income, closing

stock etc.

Liquid assets are those which are either in the form of cash or

can be quickly converted into cash such as cash, bills receivable,

short-term investment, debtors, accrued income etc.

Table 2.9: Current Assets of P.C.D.F.

(% inc/dec in bracket)

Year Closing

Stock (in Lakh)

Stock

and Storage

(in Lakh)

Sundry

Debtors (in Lakh)

Cash and

Bank (in Lakh)

Total Index No. Base year (1990-91)

= 100

1990-91 806.95 (-)

160.39 (-)

954.81 (-)

308.66 (-)

2230.81 (-)

100

1991-92 386.37 (-52.12)

23.20 (-85.53)

952.26 (-0.26)

331.46 (7.39)

1693.29 (24.09

76

1992-93 137.12 (-64.51)

26.20 (12.93)

699.45 (-26.55)

615.74 (85.74)

1478.51 (-12.68)

66

1993-94 165.01 (20.34)

26.69 (1.87)

557.67 (-20.27)

645.43 (4.82)

1394.80 (-5.66)

63

1994-95 221.43 (34.19)

146.02 (447.09)

1224.31 (119.54)

403.71 (-37.45)

2068.43 (3.66)

93

1995-96 176.08 (-20.48)

120.54 (17.44)

1374.24 (12.25)

397.57 (1.52)

2068.43 (3.66)

93

1996-97 - - - 111.82 (-71.87)

11.82 (-94.59)

5

1997-98 - - - 287.43 (157.05)

287.43 (157.04)

12

1998-99 - - 2240.67 (-)

180.07 (-37.35)

2420.74 (742.20)

108

1999-00 - - 1542.77 (31.15)

107.69 (-40.19)

1650.46 (-31.82)

73

2000-01 167.96 (0.00)

88.39 (0.00)

697.56 (-54.79)

511.14 (374.64)

1465.05 (-11.23)

66

2001-02 224.31 (33.55)

64.57 (-26.95)

387.51 (-44.15)

599.94 (17.37)

1276.33 (-12.88)

57

2002-03 218.90 (-2.41)

57.88 (-10.36)

447.75 (15.55)

576.85 (-3.85)

1301.38 (1.96)

58

Source: Complied Annual Report of P.C.D.F., Lucknow.

Table 2.9 indicates current assets. It is clear form analyzing

this table that Federation has divided its current assets into four

parts those are closing stock, stock and storage, sundry debtors,

cash and bank. Federation current assets has been increased to

less that is I times (0.58) in between the study period of 1990-91 to

2002-2003. Total current asset was Rs.2231lakh in the year 1990-

91 which reduced to Rs.1693lakh in the next year 1991-92 that

declined to 24%. It is clear form the table of current asset that

Federation‟s different current asset increases of decreased into

different ratio rates. Cash and Bank has increased the most

because in the study period it has increased to 2 times. In the other

hand the least increment was of closing stock was 0.27 times. And

increase of other current assets. Gradually stock and storage and

sundry debtors were 0.36 and 0.46 respectively.

Composition of Current Assets:

Table 2.10 indicates the share of different current assets in

total current assets. From this table it is clear that cash and bank

has the highest share in total current assets and sundry debtors.

Comes on second place in share of total current asset. Closing stock

and stock and storage has third and fourth position respectively.

There was always a fluctuating trend in these current assets. Share

of closing stock in the study period was highest in the year 1990-91

that was 36% and was lowest in 1996-97 that was nil.(%)

Table 2.10: Composition of Current Assets (in percentage)

Year

Closing

stock

Stock

and Storage

Sundry

Debtors

Cash and

Bank

Total

1990-91 36.17 7.19 42.80 13.84 100

1991-92 22.82 1.37 56.24 19.57 100

1992-93 9.27 1.77 47.31 41.65 100

1993-94 11.83 1.91 39.99 46.65 100

1994-95 11.10 7.32 61.35 20.23 100

1995-96 8.51 5.82 66.43 19.22 100

1996-97 0.00 0.00 0.00 100 100

1997-98 0.00 0.00 0.00 100 100

1998-99 0.00 0.00 92.56 7.43 100

1999-00 0.00 0.00 93.47 6.52 100

2000-01 11.46 6.03 47.61 34.88 100

2001-02 17.57 5.05 30.36 47.00 100

2002-03 16.82 4.44 34.40 44.32 100

Source: Table 2.10

Some way, share of stock and storage share during the study

period was highest in the year 1994-95 that was 7% and was lowest

in the year 1996-97 that was 0%. In another hand sundry debtors

share was highest in the year 1999-2000 that was 93% and lowest

in the year 1996-97 that was 0% and at last, the share of cash and

bank was highest in the year 1996-97 and 1997-98 that was 100%

and lowest in the year 1999-2000 that was 7%.

Formatted: Centered, Space Before: 0 pt, Linespacing: single

Investment and Deposits:

Like other institutions Pradeshik Cooperative Dairy Federation

also invests and deposits in different sources. Federation generally

deposit in U.P. Cooperative Bank, Municipal Board, Appointment

Association etc. On other hand Federation also invest in different

Financial Institutions plans in which Bank in the main source.

Along with this Federation also deposits in the post office also.

From this it is clear that to increase the income of institutions,

managers invest the capital in a planned way. The Federation has

increased to 0.09 times during the study period of 1990-91 to 2002-

2003.

Table 2.11: Investment and Deposits (Rs. in lakhs)

Year Investment and

Deposits

Increase/ Decrease

Comparative (%)

(Base Year 1990-91)

Index Numbers

1990-91 52.85 - -

1991-92 37.23 -30 70

1992-93 21.65 -41.84 41

1993-94 43.01 98.66 81

1994-95 66.79 55.29 126

1995-96 100.23 50.06 190

1996-97 192.17 91.73 364

1997-98 203.76 6.03 386

1998-99 4.60 -97.74 9

1999-00 25.90 463.04 49

2000-01 21.36 -1753 40

2001-02 4.60 -78.46 9

2002-03 4.55 -1.09 9

Source: Complied Annual Report of P.D.C.F., Lucknow

It is clear from table 2.11 that in the year 1990-91 Federations

total investment was Rs.53lakh. But in the next year it reduced to

Rs.37lakh that was 30% in comparison to the previous year. Again

it reduced in the year 1992-93 that was Rs.22lakh. But after that it

stated increasing in the year 1993-92 that was Rs.43lakh and it

shows an increasing trend in continuous tend upto 1997-98 that

was Rs.204lakh. That means, it shows more than 100% result. But

after that it reduced to Rs.5lakh in the year 1998-99. And then

again it started increasing upto the year 1999-2000. But after that

again it started reducing and continued upto the last year of the

study period. So, in the year 2000-2001 there was Rs.21lakh of

total investment and deposits which was 18%reduction in

comparison to the previous year. After that it shows an negative

trend.

It is clear by analyzing this table that Federation had paid

more attention in the beginning years. And it shows an fluctuating

trend. But after1999-2000 year it shows an deceasing trend. It can

be said that after 1999 Federation has expended its own work,

which need itself a large amount of finance.

Current Liabilities:

Current liabilities refer to those liabilities which are to be paid

in near future (normally within one year). In current liabilities

includes Bank Overdraft, Bills Payable, Creditors Outstanding

expenses and short term loans and provision for taxation.

Table 2.12: Current Liabilities of P.C.D.F. (in Lakh Rs.) (% inc/dec bracket)

Year Sundry

Creditors

Deposits

and

Securities

Current

Liabilities and

Provisions

Total Index No.

Base Year

(1990-91)

=100

1990-91 565.50 818.66 267.66 1651.82 100

Formatted Table

(-) (-) (-) (-)

1991-92 496.81

(-12.46)

34.62

(-95.77)

171.26

(-36.07)

702.55

(-57.46)

43

1992-93 218.81

(-55.95)

43.75

(26.37)

207.34

(21.16)

469.9

(-33.12)

28

1993-94 232.99

(6.48)

53.89

(23.17)

251.57

(21.33)

583.45

(24.16)

35

1994-95 588.00

(152.37)

88.32

(63.89)

334.56

(32.98)

1010.88

(73.25)

61

1995-96 756.17

(28.60)

101.79

(15.25)

451.51

(34.96)

1309.47

(29.53)

79

1996-97 - - 497.99

(102.94)

497.99

(-61.97)

30

1997-98 - - 10.11

(-97.96)

10.11

(-97.96)

0.6

1998-99 1845.91

(-)

- 768.27

(7499.10)

2614.18

(25757.36)

158

1999-00 1348.39

(-26.95)

169.26

(-)

937.65

(22.05)

2455.30

(-6.07)

149

2000-01 289.30

(-78.54)

(-) 1734.70

(85.01)

202.4

(-17.56)

123

2001-02 495.51

(71.28)

170.17

(-)

210.21

(-87.88)

875.89

(-56.72)

53

2002-03 403.51

(-18.57)

180.74

(6.21)

303.26

(44.26)

887.49

(1.32)

54

Source: Complied Annual Report of P.C.D.F., (Various Issues)

Table 2.12 is the indicator of Federation‟s current liabilities. It

is clear by analyzing this table that Federation has divided its

current liabilities into three parts-sundry Creditors, Deposits and

Securities, Current Liabilities and Provisions. Federation‟s current

liabilities has increased to 0.54 times in between the study period of

the year 1990-91 to 2002-2003. because its index was 54 as

assuming 1990-91 as base year. In the year 1990-91 Federation‟s

total current liabilities was R.1652lakh which reduced to

Rs.703lakh in the next year 1991-92. Again it reached to highest of

Rs.2614lakh in the year 1998-99 in a fluctuating trend. So, it is

clear by analyzing the Federation‟s total current liabilities that in

the year 1991-92,1992-93,1996-97,1999-98,1999-2000, 2000-

2001and in the year 2001-2002 it shows an decreasing trend in

different ratio.

In the year 1990-91 total sundry creditors were more than

Rs.565lakh. But in the next year it shows the sundry creditor as

Rs.497lakh which reduced to 12% in comparison to previous year.

And this way it reduced upto the yea 1993-94 which as more than

.232lakh but after that in the year 1994-95 it shows an increase of

Rs.588lakh and also increased in the next year. But in the year

1996-97 and 1997-98 the sundry creditors were nil. Again it

increased in the year 1998-99 that was Rs.1846lakh in this way it

shows fluctuating trend of increase-decrease in different rates. In

the year 2001-2002 total sundry creditors were Rs.496lakh which

again reduced in the year 2002-2003 upto Rs.403lakh. This way

sundry creditors shows fluctuating tend. In the study period of

Federation‟s Deposits and securities in between the year 1990-91 to

2002-2003 it increased to 0.22 times. It means of Federation‟s

Deposits and Securities shows fluctuating trend in between the

study period. As its shows as nil amount in the year 1996-97,

1997-98 and 1998-99. As analyzing relating to current liabilities

and provisions. We can say that it increased upto the year 1996-97

in different rate of increased expect the year 1991-92 which

reduced to 36%. As a result in total of study period current

liabilities and provisions has increased to more than I times.

Composition of Current Liabilities:

It is clear from table 2.13 that sundry creditor share is the

highest in total of current liabilities which was 34% in the year

1990-91 and was 57% in the year 2001-2002 by maintaining it in

increasing-decreasing trend in between the study period. But again

in the year 2002-2003 it reduced to 45%.

Table 2.13: Compositions of Current Liabilities

Year Sundry

Creditors

Deposits and

Securities

Current

Liabilities and Provisions

Total

1990-91 34.23 49.56 16.20 100

1991-92 70.71 4.93 24.36 100

1992-93 46.56 9.31 44.12 100

1993-94 39.93 9.23 43.12 100

1994-95 58.17 8.74 33.09 100

1995-96 57.75 7.77 34.48 100

1996-97 0.00 0.00 100 100

1997-98 0.00 0.00 100 100

1998-99 70.61 0.0 29.39 100

1999-2000 54.92 6.89 38.19 100

2000-2001 14.29 0.00 85.71 100

2001-2002 56.27 19.43 24.00 100

2002-2003 45.46 20.37 34.17 100

Source: Complied Annual Report of P.C.D.F., Lucknow.

It is clear from the table that sundry creditors share is

increasing. In other hand deposits and securities present a mixed

trend. It is clear by analyzing table that deposit and securities share

decrease in every next year. Share of deposits and securities was nil

in the year 1996-97, 1997-98, 1998-99 and 2000-2001 and was

next least upto 5% and was highest upto 50% in between the study

period of 1990-91 to 2000-2003 and current liabilities and

provisions present an different picture in the table that it was least

in the beginning of the study period but after that it present

increase decease trend and at lat in the year 2000-2001 it increased

upto 86% and in between in the year 1996-97 and 1997-98 it

shows 100% share of current liabilities and provisions. But after

that its share reduced upto 24% in total current liabilities. But in

the lat year of the study period that is 2002-2003 its share

increased to 34%.

Working Performance:

Knowledge of development, expansion, and diversification

etc. of business activities of any institutions is known by

performance of organizing work. It also clear that how efficiently

and effectively institution perform its business activates. And where

it stands through the result of these activates. From the beginning

of its establishment Cooperative Dairy Federation is increasing its

organizing work. Under this part its present the different organizing

work of Federation. Under this part it analyses total turnover,

situation of opening and closing stocks and profit and loss.

Total Turnover:

As we know that Pradeshik Cooperative Dairy Federation

is mainly a marketing institution. It is related to the milk business

in state. Under this Federation sales milk according to pre planned

directions by receiving milk form different sources and by

processing process. Also sales milk product in the market.

Table 2.14: Turnover of P.C.D.F. (in lakh)

Year Total Turnover

Increase/Decrease Comparative (%)

(Base Year 1990-91)

Index Numbers

1990-91 7210.22 - 100

1991-92 6334.32 -12.15 88

1992-93 3462.42 -45.34 48

1993-94 4576.86 32.19 63

1994-95 4429.14 -3.23 61

1995-96 6391.91 44.31 89

1996-97 7308.85 14.35 101

1997-98 9699.65 32.71 135

1998-99 8107.85 -15.79 113

1999-00 6313.43 -22.70 88

2000-01 4193.35 -33.58 58

2001-02 3905.99 -6.85 54

2002-03 3838.38 -1.73 53

Source: Complied Annual Report of P.C.D.F, Lucknow.

Table 2.14 presents total turnover in between the study period

of 1990-91 to 2002-2003. It is clear by analyzing this table that

total turnover has increased to 0.5 times mean less than 1 times.

As its rate of increase and decrease shows different trend of rate. In

the year 1990-91 the total turnover was Rs.7210lakh but it reduced

to Rs.6334lakh in the year 1991-92 and also continued in reducing

in the next year also which was 45% in comparison to previous

year. This way it shows increasing trend upto the year 1997-98

upto Rs.9700lakh except in the year 1991-92, 1992-93 and 1994-

95. But after that it shows the decreasing trend upto the last yea of

the study period that was Rs.3838lakh in the year 2002-2003

which reduced to more than 1% in comparison to previous year. It

is clear from that table that the highest turnover of federation was

in the year 1997-98 that was Rs.9700lakh.

Stock:

The term stock includes the value of those goods which are

lying unsold at the end of accounting period. The stock may be of

two types (i) Opening stock, (ii) Closing stock.

The term „Opening Stock‟ means the values of goods lying

unsold at the beginning of the accounting period. Whereas the term

„Closing Stock‟ means the value of goods lying unsold at the end of

the accounting period. In other we can say that the goods lying

unsold at the end of the accounting period is called closing stock

and that goods are only opening stock of the beginning of the year.

Table 2.15: Opening Stock of P.C.D.F.

Year Opening Stock

(in lakh)

Increase/Decrease Comparative

(%)

(Base Year 1990-91)

Index

Numbers

1990-91 854.07 - 100

1991-92 806.65 -5.55 94

1992-93 217.51 -73.03 25

1993-94 115.47 -46.91 14

1994-95 170.56 47.70 20

1995-96 220.26 29.43 26

1996-97 173.46 -21.43 20

1997-98 216.24 24.66 25

1998-99 841.64 289.22 98

1999-2000 1130.52 34.32 132

2000-2001 326.79 -71.09 38

2001-2002 167.96 -48.60 20

2002-2003 224.31 33.35 26

Source: Complied, Annual Report of P.C.D.F, Lucknow.

Table 2.15 indicates the opening stock of Pradeshik

Cooperative Dairy Federation. It is clear by analyzing this table that

opening stock has increased to 0.26 times means less than I times

in between the study period of the year 1990-91 to 2002-2003. In

the year 1990-91 the total amount of opening stock was Rs. 854

lakh. But in the net year it reduced to Rs. 807 lakh in the year

1991-92. This way it shows the decreasing trend upto the year

1993-94 that was 47% in comparison to previous year. But in the

year 1994-95 it shows increasing trend upto 1999-2000. Except in

the year 1996-97. But again in the year 2000-2001 it reduced to

Rs. 327 lakh which decreased 71% in comparison to previous year.

But again it increased to Rs. 224 lakh in the last year of the study

period that is 2002-2003.

Table 2.16: Closing Stock of P.C.D.F. (in Lakh)

Year

Closing Stock

(in lakh)

Increase/Decrease

Comparative (%)

(Base Year 1990-91)

Index Numbers

1990-91 806.95 - 100

1991-92 769.67 -4.62 95

1992-93 137.12 -82.18 17

1993-94 165.01 20.34 20

1994-95 221.43 34.19 27

1995-96 176.08 -20.48 22

1996-97 216.24 22.81 27

1997-98 255.96 18.37 32

1998-99 191.89 -25.03 24

1999-00 326.79 70.30 40

2000-01 167.96 -48.60 21

2001-02 224.31 33.55 28

2002-03 218.90 -2.41 27

Source: Complied Annual Report of P.C.D.F., Lucknow.

Table 2.16 present closing stock of the Federation. It is clear

by analyzing the table 2.16 that in the year 1990-91 the closing

stock of Federation was Rs. 807 lakh, which reduced to more than

Rs. 769 lakh and continued in the next year also that was 82%.

This table shows fluctuating trend. That means after every two or

three years it increases or decreases. The index was 27 as assuming

the base year 1990-91. It shows the increasing trend from the year

1993-94 upto the year 1997-98 except in the year 1994-95 in

different increasing rate. After that from the year 1998-99. It show

fluctuating trend and it continued upto the last year of the study

period. In the year 2001-2002, it increased to Rs. 224 lakh but

reduced in the next year 2002-2003 that was more than Rs. 218

Lakh which reduced to 2%.

Net Profit and loss:

The base of evaluating working efficiency and performance of

any enterprises is generally profit and loss. Where profit indicates

better working efficiency and. efficient management. And loss

indicated question mark on it. But Pradeshik Cooperative Dairy

Federation is based on Cooperatives and it cannot be evaluated

correctly on the base of profit and loss.

Table 2.17: Closing Stock of P.C.D.F. (in Lakh)

Source:

Complie

d

Annual

Report of

P.C.D.F.,

Lucknow

.

Tab

le 2.17

presents

the

Federati

on‟s

profit

and loss.

It is

clear by

analyzin

g this table that in the year 1990-91 Federation bears loss. But

from the next year 1991-92 upto the year 1998-99 Federation has

profit in different increasing rate. But again in the year 1999-2000

Federation has profit in different increasing rate. But again in the

Year

Closing Stock

(in lakh)

Net Profit

Increase/ Decrease

Comparative

(%)

(Base Year 1990-91)

Index

Numbers

1990-91 71.38 - - -

1991-92 - 99.98 - 100

1992-93 - 94.94 -5.04 94.95

1993-94 - 92.96 -2.08 92.97

1994-95 - 14.01 -84.92 14.01

1995-96 - 42.58 203.92 42.59

1996-97 - 92.36 116.9 92.37

1997-98 - 66.10 -28.43 66.11

1998-99 - 13.43 -79.68 13.43

1999-00 186.63 - - 186.66

2000-01 28.49 - -84.73 28.49

2001-02 79.78 - 180.02 79.80

2002-03 - 98.82 - 98.84

year 1999-2000 Federation bears loss and continued upto 2001-

2002.

But again in the year 2002-2003 it shows profit in the

Federation. Hence, it is clear that Federation has profit. But in few

year Federation beard loss because some unit of Federation were

not properly utilized its resources. And their administrative

expenses were also increased. But at last year of study period it

shows profit to the Federation. It means after some drawbacks also

federation maintained its profit.

Conclusion:

From the above analysis it is clear that Pradeshik Cooperative

Dairy Federation is and marketing institution, which is engaged in

Dairy business. Efforts are being done to bring operation flood in

state through this Federation. Operation Flood first, second and

third are implemented through the medium o this institution. In

this way, Federation is encouraging farmers in Dairy business along

with agriculture in state to make profitable. For this way

programmes are applied. Its organization structure Federation

functions are divided according to their nature and all works are

edited by above mentioned authorities.

In the study period share capital has increased 0.84 times.

State government, top financial institutions, Dairy Federation and

Primary Cooperative Committees are included in share capital. The

share of State Government is the highest which is more than 90%

Dairy Federation comes at second place which is 9.32% satisfactory

facilities are for Reserve and Surplus. And different funds have been

for different objective. Federation gets Grants and Assistance from

different sources for encouraging milk business in the stat. Along

with this Federation also gets capital from deposits and securities.

In the study period it incrased to 0.45 times. It means in the year

1990-91 it was Rs. 523 lakh and in the last year it was only Rs. 234

lakh like other institutions Federation also gets loans on Securities

and Advances. In the study period it increased to 0.44 times. In this

way institution fixed assets are also increased to 0.44 times. In this

way institution fixed assets are also increasing. In the year 1990-91

its total fixed assets was Rs. 351 lakh which was Rs. 223.5 lakh in

the year 2002-2003. This way it has increased to 0.63 times mean

less than 1% current assets has been also increased. It is clear by

analyzing this table that fixed assets are increased more

comparison to current assets. It is an indication of progress of

Federation.

Like any institution Federation also invests and deposits. It

increased to 0.086 in the study period. Because in the year 1990-91

the total investment and deposits was Rs. 53 lakh but in 2002-2003

it was only Rs. 5 lakh where Federation‟s Assets decreased it same

way its liabilities has also decreased. As between the study period it

increased to 0.54 current liabilities are divided into three parts.

Sundry Creditors, Deposits and Securities and Current Liabilities

and Provisions. Sundry Creditors amount was highest in total

current liabilities.

In the year 2002-2003 Federation‟s total turnover was Rs.

3838 lakh. In the study period of 1990-91 to 2002-2003 opening

stock increased to 0.26 times. It means in the year 1990-91 opening

stock was Rs. 854 lakh and in the last year 2002-2003 it was Rs.

224 lakh. And closing stock increased to 0.27 times during the

study period. As in the year 1990-91 closing stock was Rs. 807 lakh

and in the last year 2002-2003 it was Rs. 219 lakh. Federation in

expanding its working area. It is clear by the study period of profit

and loss. By analyzing this table we can say that Federation is

earning profit because in the year 1990-91 the Federation was

bearing loss of Rs. 71 lakh but in the year 20002-2003 they earned

profit of Rs. 99 lakh.

REFERENCES

1. Annual Repot of P.C.D.F. 2002-2003, Page No. &

2. From P.C.D.F. Magazines (other source of P.C.D.F.).

3. Annual Report of P.C.D.F. 2002-2003, Page No. 9.

4. Historical Review of P.C.D.F. Report.

5. Annual Report of P.C.D.F. 2002-2003, Page No.7.

6. Motihar, M. and Pawan Jaiswal, Principles of Management.

Kayani Publishers, New Delhi, 2002, Page No. 150.

7. Ibid, Page No. 151.

8. Bhushan, Y.K., Business Organization and Management, S.H.

Chand, New Delhi, 2002, Page No. 241.

9. Bishwambhar Jha, Fudamental of Industrial Organization and

Management, Novelty and Company Tarabhawan, Patna,

2002, Page No. 465.

10. Jagdish Prakash, Business Organization and Management,

Kitab Mahal, Allahabad, 203, Page NO. 301.

11. Bishwambhar Jha, Fundamental of Industrial Organizatinon,

Opcit, Page No. 473.

12. Motihar, M., and Pawan Jaiswal, Principles of Management,

Opcit., Page No. 173.

13. Bhushan, Y.K., Business Organization and Management,

Opcit, Page No. 251.

14. Jagdish Prakash, Business Organization and management,

Opcit, Page No.305.

15. Dr. Gupta, O.P., Indian Company Law, Sahitya Bhawan

Published and Distributors Pvt. Ltd., Agra, 2004, Page No.

234.

16. Annual Report of 2000-2001.

17. Dr. Gupta, O.P. Indian Company Law, Opcit, Page No. 250.

18. All tables from Complied Annual Reports.*****