Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

INTERNSHIP REPORT ON

Analysis of Financial Structure and Position of KOMUL,

Kolar Branch,

SUBMITTED IN PARTIAL FULFIMENT OF THE

REQUIREMENTS OF

BACHELOR OF COMMERCE DEGREE OF

BENGALURU NORTH UNIVERSITY
BY

VINAY . M

REG NO. U19KG21C0007

UNDER THE GUIDENCE

OF Mrs. MEGHA MAM

ASSOCIATE PROFESSOR OF COMMERCE

CHAITANYA INSTITUTE OF MANAGEMENT

&SCIENCE

KOLAR-563101

2023-24

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

STUDENT DECLARATION

I VINAY M. Reg. No.U19KG21C0007, hereby declare that this report entitled

“Analysis of Financial structure and position of KOMUL, Kolar Branch,” during
the summer vacation between the period from 28-3-2024 to 18-4-2024 at Kolar
Chikkaballapura District Co-Operative Milk Producers Union Ltd.,
(KOMUL)” under the supervision and guidance of MRS MEGHA MAM,
Associate Professor Of Commerce Chaitanya Institute Of Management & Science
Kolar.

DATE SIGNATURE

PLACE VINAY M

REG. NO. U19KG21C0007

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

ACKNOWLEDGEMENT

The successful completion of this internship report required significant guidance and
assistance from many individuals, and I am truly grateful for their support throughout
this journey.

Firstly, I would like to express my sincere appreciation to Mr.MURALI , HR Manager

KOMUL, Kolar, for providing me with the opportunity to intern at their esteemed
organization.

I am also deeply grateful to our faculty coordinator, Mrs. MEGHA MAM , and our
principal, M D SHOIAB PASHA, for their unwavering support and for granting me the
valuable opportunity to intern, which has been instrumental in my learning and exposure
to the field of accountancy and finance.

I would like to extend my heartful thanks to my parents for their permission and
constant encouragement throughout this internship. Additionally, I am thankful to my
friends for their support whenever I needed their assistance during this project.

Lastly, I would like to express my profound gratitude to all individuals who directly or
indirectly contributed to the completion of this report.

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TABLE OF CONTENTS

1. Executive summary

2. Introduction

3. Description of the Organization

4. Experiential Learning

5. Internship Outcomes and Conclusion

6. Bibliography

7. Annexures

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

Executive Summary

Analysis of Financial Structure

1. Capital Structure-The Company’s capital is predominantly composed of equity and debt. Equity
represents ownership in the company, while debt represents borrowed funds.

2. Debt-to-Equity Ratio- The debt-to-equity ratio measures the proportion of debt and equity used to
finance the company's assets. A lower ratio indicates less reliance on debt financing-

3. Liquidity- Liquidity ratios such as the current ratio and quick ratio assess the company's ability to
meet short-term obligations with its current assets.

4. Asset Structure- Analyzing the composition of assets reveals the allocation of resources in different
categories such as cash, inventory, property, plant, and equipment.

Financial Position

1. Profitability- Key metrics such as gross profit margin, operating profit margin, and net profit margin
indicate the efficiency of operations and overall profitability.

2. Financial Health- Ratios like return on assets (ROA) and return on equity (ROE) measure the
company's ability to generate profits from its assets and equity investments.

3. Solvency- Solvency ratios like the debt ratio and interest coverage ratio evaluate the company's ability
to meet long-term financial obligations and interest payments

4. Investor Perspective- Shareholders' equity, canings per share (EPS), and dividend yield provide
insights into the company's attractiveness to investors and potential for future growth.

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

CHAPTER I: INTRODUCTION

Introduction to KOMUL. (Kolar-Chikkaballapura District Co-operative Milk Producers' Union Limited)

KOMUL, short for Kolar-Chikkaballapura District Co-operative Milk Producers' Union Limited, is a
renowned dairy cooperative based in the southern state of Karnataka, India. Established in 1994,
KOMUL has emerged as a key player in the dairy industry, dedicated to uplifting the lives of dairy
farmers and providing consumers with high-quality dairy products. KOMUL's mission revolves around
empowering dairy farmers by ensuring fair prices for their milk and promoting sustainable dairy farming
practices. The organization aims to contribute to the socio-economic development of the region while
meeting the nutritional needs of consumers. At the heart of KOMUL's operations is its modern dairy
processing plant, equipped with cutting-edge technology to process raw milk into a diverse range of
dairy products. These include pasteurized milk, flavored milk, yogurt, butter, ghee, ice cream, and more,
all produced to the highest quality standards. KOMUL places utmost importance on quality control and
food safety. Stringent measures are implemented throughout the production process to ensure that all
dairy products meet or exceed national and international standards. This commitment to quality has
earned KOMUL the trust and loyalty of consumers. Beyond its commercial activities, KOMUL plays a
significant role in the community. By providing a reliable market for milk producers, the organization
strengthens the rural economy and supports livelihoods. Additionally, KOMUL is involved in various
welfare programs aimed at improving the well-being of dairy farmers and their families.

Looking ahead, KOMUL is focused on continuous innovation and expansion to meet the growing
demand for dairy products in the market. The organization is committed to sustainable growth and
strives to remain a leading force in the dairy industry, setting benchmarks for quality, efficiency, and
social responsibility.

In summary, KOMUL stands as a beacon of cooperative success, exemplifying the transformative

impact of collective action in agriculture and dairy production.

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

CHAPTER 2: Description of the Organization

KOLAR-CHIKKABALLAPURA DISTRICT MILK UNION LTD., KOLAR

PROGRESS REPORT

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Objectives of the Union

 To improve Dairy farming activities in rural area by establishing Milk producers co- operative
societies (MPCS) under co-operative principles.

 To provide assured and remunerative market round the year for the Milk produced by the
producer members.

 To provide package of technical inputs to its Milk producers for the enhancement of milk
production. This includes facilities such as emergency visit service, Infertility camps, First Aid
services, Artificial insemination, and Mass Vaccination programme against diseases.

 Supply of balanced cattle feed at subsidized rate, Fodder development programmes, beside
extension programmes.

 To provide necessary training for producers, members and staff of the Dairy co-operative Society.

 To facilitate rural development by providing self-employment opportunities for unemployed

youths at village level. In other words to prevent migration of unemployed youths from rural area
there are by providing an opportunity for steady income.

 To eliminate middleman by organizing MPCS which is owned and managed by producers

themselves.

 To provide quality milk and milk products to urban consumers rales consented by GOK from
time to time.

 To uplift the Socio economic status of the rural people.

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

Mission Statement:

Kolar - Chikkaballapura Milk Union to continuously procure quality milk by providing remunerative
price & technical input services to Producers and to supply quality Milk & Milk Products to the
consumes. It also strives to achieve top position in the dairy industry by improving the financial position
of the union.

Our Values:
 Honesty
 Discipline
 Quality
 Hard Work
 Mutual Trust & Belief
 Transparency
 Co-Operation & Team Work

STATUS

Kolar-Chikkaballapura District Co-operative Milk Producers Union is registered under Co- operative
Societies act after bifurcation from Bangalore District Co-operative Milk Producers Union on
23/03/1987. The area of operation is twin Districts of Kolar and Chikkaballapur having 11 taluks, 2919
villages.

SHARE CAPITAL

Union started with a Share Capital of Rs.8.56 Lakhs, which was transferred from Bangalore District
Milk Union. The Share Capital of the Union as on 202 1-22 is Rs.73.42 Crores.

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Membership and Share Amount:

Union was started in the year 1987 with 460 functional DCS, as at the end of Jan-2024 Union has 2265
Registered Dairy Co-operative Societies and Commissioned 2258 DCS, of which 1928 MICS are
Functional. Total Members enrolled are 3,08,773 of which I,03,337 are Small Fames, 1,03,482 are
Marginal farmers, 56,418 are Agri Laborers 45,536 are Others. N4,108 are Women Members 48,252 are
Schedule Caste 31,272 are Schedule Tribe, and 1807 are OBC members.

Commissioned and Functional Societies for the last 5 years are as follows.

Districts 2018-19 2019-20 2020-21 2021-22 2022-23

Func.DCS Func.DCS Func.DCS Func.DCS Func.DCS

Kolar District 900 905 916 926 948
CB pur District 965 968 977 976 976
GRAND TOTAL 1865 1873 1893 1902 1924
% DCS IN KLR 48.26 48.32 48.39 48.69 49.27
%DCS IN CBP 51.74 51.68 51.61 51.31 50.73

MILK PROCUREMENT:

The present average Milk procurement during the month of jan-2024 is 9.65 Lakh kgs per day from
1928 DCS comprises of 3.08 lakh members.

Districts 2018-19 2019-20 2020-21 2021-22 2022-23

Kolar district 530418 516458 503866 510623 507745
CB district 485076 445996 417439 402685 383881
Total Avg Qty 1015494 962452 921305 913308 891626
% Growth 4.9 -5.2 -4.3 -0.9 -2.4
Union Proc% IN KLR 52.23 53.66 54.69 55.91 56’95
Union Proc% IN CBP 47.77 46.34 45.31 44.09 43.05

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Milk Price:

PROCUREMENT PRICE
YEAR 35% FAT & 8.5% SNF
To DCS To Producers
2018-19 25.00 23.00
2019-20 27.05 26.00
2020-21 29.20 27.00
2021-22 25.25 24.00
2022-23 35.35 33.90
2023-24 35.85 33.40

The cost per kg of Milk is calculated based on Fat and SNF quality of milk. Basic price is calculated for
4.0% Fat and 8.5% SNF. At present Milk is purchased from DCS at price of Rs 33.15 and DCS pay Rs
31.90 to Producers. In 2021-22 the Union has paid Rs 932.12 crores to milk producers. In Jan-2024
Union has paid Rs 106.30 crores

Quality Incentive:

Quality Incentive is being paid once in 3 months to the DCS staff for procuring quality milk which is to
the tune of Rs3 crores

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd
Technical Input Activities:

 First aid facility:

Union is supplying drugs related to First-Aid service as per need of the DCS. Emergency service
of a qualified Veterinarian is made available at the DCS level. During 2022-23 2,885 animals
have been treated first aid. Jan-2024 136 animals have been treated first aid and I436 emergency
cases were attended.

Artificial insemination activities:

To improve the local breeds and to enhance milk production Union is operating Artificial
Insemination (Al) centers through Single Al and Cluster Al concept. In Cluster Al concept a
trained Inseminator discharges his service at the door steps of member producers. As on Jan-2024
85 single Al centers and 192 cluster Al centers are in operation covering 1928 societies. As on Jan-
2024 24,051 artificial inseminations have been done. During the year 2022-23 a total of 1,03,896
calves were born.

Calves Born 2018-19 2019-20 2020-21 2021-22 2022-23

Kolar District 78352 89942 86069 63040 49329
CBPur District 85838 91871 86626 59115 54567
GRAND TOTAL 164190 181813 172695 122155 103896
% Growth -8.87 10.73 -5.02 -29.27 -14.95

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd
 V'ACCINATION PROGRAMIE:

During 2022-23, in association with Government Veterinary department 3,84,414 r e M

vaccination were carried out. The Union carried out 42.902 Theileriasis vaccinations.

 Feeds and Fodder

During the year 2022-23 total of 69.340 MT cattle feed. In the month of Jan-2024 90,760 Kgs of
Mineral Mixture was sold & 6.866 MT of cattle feed was sold to MPCS. As on Jan-2024 594 plots
were raised.

CATTLE FEED SALES FOR LAST 5 YERS AT A GLANCE

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd
Year 2018-19 2019-20 2020-21 2021-22 2022-23
Cattle feed sales 63218 53176 62406 69340 66022
% Growth -5.07 -15.88 17.36 11.11 -4.79

STEP (Support to training and Employment Programme)

STEP programme is implemented by KMF through Govt of India funds. The Programme of STEP
aims

 To make a significant impact on women in traditional sectors (Dairying & Animal

Husbandry) by upgrading skills.
 Providing employment to women on a project basis by mobilizing women in viable groups,
improving skills, arranging for productive assets.
 Creating forward and backward linkages &improving/arranging support services, providing
access to credit.
 Awareness creating, gender sensitization, nutrition education, sensitization of project
functionaries

Union has 232 exclusive Functioning Women Dairy Co-operative Societies. Out of which 108 DCS
are covered under STEP program.

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Programmes to develop dairy cooperatives:-

Rs. 4/- 1ncentive scheme:-

For every liter of milk supplied by the producer to DCS Rs. 2/- was give as incentive by Govt of
Karnataka, effective from 19/09/2008. Subsequently. From 14/05/2013, Govt of Karnataka
increased it to Rs 4/- per liter of milk. In this scheme, an average of 92,362 milk producers are
availing bene fit of Rs 4/- GOK scheme through Kolar Chikkaballapura Milk Union. An average of
Rs 10.5 crores per month is being paid: from 01/12/2016 Govt of Karnataka increased it to Rs 5/-
per liter of milk

Group Cattle Insurance:-

In the year 2022-23 1,10,682 milch animals were enrolled for premium at the rate of I.89% of the
rated value of the animal.

AAM Admi Bema Yojana:-

In year 2016-17 20,060 members were enrolled at premium rate of Rs 230 per member. Out of this
Central Government barred Rs 100 and remaining Rs 130 Rs 65 has been bared by Kolar District
Farmers Welfare Trust and remaining Rs 65 has been barred by enrolled members.

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

Processing Capacity:

Kolar dairy was established during 1994 with a processing capacity of LLPD OT t processing
capacity of the dairy was increased to 2.5 lakh liters during 2005 under Perspective plan phase-l
and again to handle 4,.0 lakh liters per day in the vear 2011. In the year 2018 a new Mega dairy
with a processing capacity of 3.0 LKPD was established in Chikkaballapura.

Milk Sales:

The marketing area includes entire Kolar. Chikkaballapura districts and parts of Bangalore urban
and rural districts. The Union sells following varieties of milks

 Toned Milk
 Shubam Milk
 Special Milk
 Samruddhi Milk.
 Double Toned milk.
 Homogenized Cow Milk.
The other products being manufactured and marketed includes UHT Milk, Butter Milk, Curd, Ghee,
Peda and Cheese. Besides this, the Union routes 120 other products of Nandini manufactured by
K.M.F and affiliates. The Union is increasing its market share steadily. The average milk sale during

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

the month of Jan-2024 is 4.82 lakh liters per day through 1637 retailers. During this year the Union
registered milk sales of 5.29 lakh liters on 22/08/2023 and it is highest milk sales for a single day.

The Average milk sales per day for the last 5 years are as follows

Year 2018-19 2019-20 2020-21 2021-22 2022-23

Avg Milk sales per day 304878 319875 322315 355984 472816
% Growth 3.63 4.92 0.76 10.45 32.82

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

UHT MILK - Specialty of KOMUL.

In order to met the requirement of different Segment of consumers and their convenience, KOMUL
introduced UHT milk variants in T'etrapak packs tothe market. During the process of UHT, milk is
sterilized at temperature of 137°C for 4 seconds and cooled instantly which retains all the vitamins
and nutritional value of milk providing zero bacteria product which needs no boiling for use. The
milk is packed in 6-layer tamper proofed Tetra-pack which ensures freshness & Purity reiteration.
The milk can be stored without refrigerating for 60/90 days in fino-packaging and 180 days in Brik
packaging. The average sales of UHT milk during the year 2021-22 is 3.56 Liters per day. Union
registered record UHT milk sales of 7.33 lakh liter on 26/08/2020 and it is recorded as highest
UHT milk sales for a single day. The average UHT milk sale during the month of Jan-2024 is 1.93
lakh litres per day. The average UHI Flexi milk sale during the month of Jan-2024 is 0.18 lakh
liters per day. The Total average UHT milk sale during the month of Jan-2024 is 2.12 lakh liters
per day.

Year 2018-19 2019-20 2020-21 2021-22 2022-23

UHT sales liters 267065 275119 350729 327917 272469
%Growth 15.61 3.02 27.48 -6.50 -16.91

PRESENT VARIENTS OF UHT MILK

100ML Fino Packing Good life cow milk [3.6% FAT & 8.5% SNF]

Smart milk [ 1.5% FAT &9.0% SNF]

180ML FINO Packing Good life cow milk [3.6% FAT & 8.5% SNF]

Smart milk [ 1.5% FAT &9.0% SNF]

500ML Fino Packing Good life cow milk [3.6% FAT & 8.5% SNF]

Smart milk [ 1.5% FAT &9.0% SNF]

500ML Brik Packing Good life cow milk [3.6% FAT & 8.5% SNF]

Smart milk [ 1.5% FAT &9.0% SNF]

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

Slim milk [0.5% FAT & 9.0% SNF]

100ML Brik Packing Good life cow milk [3.6% FAT & 8.5% SNF]

Smart milk [ 1.5% FAT &9.0%

SNF] Slim milk [0.5% FAT & 9.0% SNF]

Milk Products Average Sales per day for the Month of Jan-2024

SL.NO Products Unit Quantity

1 Ghee Kg 6438
2 Curd Kg 89736
3 Cheese Kg 1609

Profit and Loss:

During 2022-23, the unions turn over Rs 1563.15 crores with profit of Rs 4.19 crores. In this
financial year, the union paid an average of Rs 27.96 per kg to milk producers.

Year 2017-18 2018-19 2019-20 2020-21 2021-22

Turn over ( Rs in crores) 1374.65 1423.02 1482.27 1496.22 1582.60

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

KOLAR-CHIKKABALLAPURA MILK UNION MILESTONES

 23.03.1987 Bifurcation of the district from an operational area of Bangalore Milk union
Ltd.,(BAMUL) to form a separate milk union with 422 functional DCS and Rs 8.56 Lacks
Share Capital.
 1987 Establishment of first Women Dairy Co-operative Society in the Union.
 1989 Inauguration of Sadali chilling center.
 1990 Initiation of milk marketing at Inter-dairy rate.
 1991 Inauguration of Gowribidnur chilling center.
 1991 KMF handed over chilling centers at Kolar. Sadali Chintamani and Gowribidnur to
Kolar Milk Union Ltd.,
 1994 Inauguration of full-fledged dairy at Kolar with a processing capacity of 1.0 lakh
Liter/Day.
 1994 Union started liquid milk marketing under the brand name of Nandini in Polythene
Packets.
 1995 Inauguration of Administrative Building in the Dairy campus.
 1998 Inauguration of Cheese Plant.
 1999 For the first time in Karnataka State Union started marketing Nandini UHT milk in
the name of "Good life" "Slim" and "Smart".
 1999 Expansion of processing capacity of Chintamani chilling center.
 2000 Outside the state, entry into the Chennai for Milk marketing.
 2001 Kolar Dairy certified for ISO-9002 Quality Management System.
 2001 Installation of AMC Units at DCS level.
 2001 Union started marketing Masti Dahi.
 2001 Expansion of UHT Unit in KOMUL.
 2002 Started implementation of TIFAC Project.
 2007 UHT Processing Capacity was increased from existing 0.4 LLPD to 1.5 LLPD.
 2008 Union started to export Good life milk with a shelf life of year to Singapore

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

 2008 Union started to supply Good life milk to Indian army.

 2008 Our Union was renamed o "KOLAR CHIKKABALLAPURA COOPERATIVE
MILK PRODUCERS SOCIETIES UNION LTD",
 2009 Introduced Good life milk 200ml Fino packets to market.
 2009 Launched New 1000ml Brik UHT variant Milk called SNF 8.5% to
market."Sampoorna" with Fat 4.5% &
 2010 Enhanced UHT plant for 2.5 lakhs liters per day packing capacity.
 2010 Constriction of Mega Dairy has been Started near Nandi Cross Chikkabalapur.
 2011 Expansion of Processing Capacity from 2.5 LLPD to 4.5 LLPD.
 2014 State Govthas Transferred 10Acre of Land to KOMUL near Srinivasapur.
 2015 RO Plant & Multiplayer Boiler Inaugurated.
 2017 Expansion of Cheese plant from 2MT to 5MT.
 2017 Union Started Mysore Pak Production.
 2017 New Transformer Capacity of 1600 KVA have been Started.
 2017 Foundation Stone for "Automated Corrugated box manufacturing unit" has been laid.
 2018 March Mega Dairy Inaugurated at Chikkaballapur.
 2019 Alsafe installed in UHT Plant at Kolar Dairy. To enhance the production.
 2020 Expansion of Refrigeration Plant by Installation Screw Compressor with Scada
System with capacity of 540TR in Kolar Dairy.
 2020 Mega Dairy certified for IS0-2200-2018 Quality Management System.
 2021 Kolar Dairy certified for ISO-2200-2018 Quality Management System.
 2023 Foundation Stone for "MVK Dairy, lce Cream Plant in Chintamani Chilling Center &
Solar Power Plant at Holali Village" has been laid.

ACHIEVEMENTS

 1994-95 Union was the first to introduce the "Operation Theileriasis" vaccination
program in India.

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

 1999 Installation of AMC Units at DCS level and For the first-time in the history of
Karnataka, inauguration of BMC centers in the jurisdiction of KOMUL
 2001 Inauguration of Animal Disease Diagnostic L laboratory at Chintamani chilling
center campus.
 2002-03 inauguration of Community Machine Milking Parlors (centers) first of its
India.
 2003-04 started "Clean Milk Program" or the first time in Karnataka.
 2003-04 started mass vaccination programs or Foot and Mouth Disease in coordinator
with Animal Husbandry Department, Govt of Karnataka.
 2006 Producer welfare trust was started.
 26/08/2020 Highest UHT Milk Sales is 7.33 LLPD.
 22/08/2023 Highest Liquid Milk Sales is 5.29 LLPD.
 29/03/2023 Highest Curd Sales is 1,48,810 KGPD
 19/06/2018 Highest Milk Procured is 11.64 LKPD.
 2017 Union received "QUALITY MARK" certification from NDDB.

Awards

 2003 Union bagged National Productivity Council Award - 2nd Place.

 2004 Union bagged National Productivity Council Award- 2nd Place.
 2006 Union bagged Best Co-operative Union Award in the state.
 2008Union received Energy Conservation Award both from Central and State
Governments
 in Dec.
 2009 Union got 1 st Place in National Energy Award and 2nd place in State Energy
Conservation Award.

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd
GENERAL INFORMATION

SL.No. Particulars
1 Area of operation Kolar- Chikkaballapura
2 No. of taluks covered 11
3 No. of revenue villages 2932
4 No.of villagers covered 2809
5 No.of functional DCS 1928
6 No.of Milk procurement routes 74
7 No.of chilling centers 2
8 Dairy, chilling centers & BMC’S Processing capacity (LLPD)
9 Main Dairy @ Kolar 4.5
Chintamani C.C. 1.0
Gowribidinur C.C. 1.0
10 Mega Dairy @ CB Pur 3.0
11 KOLAR DAIRY
UHT Plant 3.0 LLPD
Cheese Plant 05 MT/Day
Butter Unit 20 MT/ Day
Ghee Unit 06 MT/Day
Curd 50 MT/Day
12 MEGA DAIRY
UHT Plant at Mega Dairy 1.8LLPD
FLEXI Pack Unit at Mega Dairy 0.8 LL PD
Paneer Plant at mega Dairy 10 MT/ Day
Butter Unit at Mega Dairy 10MT/Day
Ghee Unit at Mega Dairy 04 MT/ Day
13 Bulk Milk Coolers Units 1082000 LPD
14 Automatic Milk collection Units 1295
15 EMT 665
16 Milk distribution routes 177
17 No. of retailers 1637
18 Nandini Milk parlors (including Franchises) 558

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

BOARD OF DIRECTORS

SL.NO Names Designation

1 Sri K Y Nanjegowda President, MLA Malur Tq
2 Sri Jayasimha Krishnappa Director, Bangarpete Tq
3 Sri K N Nagaraj Director, Mulbagal Tq
4 Sri J Kantharaj Director, Gowribidanur Tq
5 Sri V Manjunath Reddy Director, Bagepalli Tq
6 Sri Aadinarayana Reddy Director, Gudibande Tg
7 Sri Y B Ashwathnarayana Director, Chinthamani Tq
8 Sri D V Harish Director, Kolar Tq
9 Sri N Hanumesh Director, SVpura Tq
10 Sri NC Venkatesh Director, CBpura Tq
11 Sri R Srinivas Director, Shidlaghatta Tq
12 Smt Sunandamma Director, CB pura Dist
13 Smt R Kanthamma Director, Kolar Dist
14 Sri Younis Sharif Govt Nominee Director
15 Sri Ashwathnarayana RCS Representative
16 Dr G TRamaiah Dept. of AH Representative
17 Sri M.N Sathish NDDB Representative
18 Sri B.P.Suresh KMF Representative
19 Sri KN Gopal Murthy Managing Director

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

CHAPTER III: Experiential Learning

FINANCIL PERFORMANCE

Financial statements are formal record of the financial performance or activities of a business,

person or other entity and provide an overview of a business or person's financial condition in
both short and long term. They give an accurate picture of a company's condition and operating
results in a condensed form.

Financial statements are used as a management tool primarily by company executive and
investor's in assessing the overall position and operating results of the company. Analysis and
Interpretation of financial statements help

in determining the liquidity position, long term solvency, financial viability and profitability of a
firm. Ratio analysis shows whether the company is improving or deteriorating in past years.
Moreover, comparison of different aspects of all the firms can be done effectively with this. It
helps the clients to decide in which firm the risk is less or in which one they should invest so that
maximum benefit can be earned.

Need for the study

In this today's modern market customer satisfaction among customers has its majority of the roles
in the service turnover of the company, every business invest heavily aspect to build a strong
image and gain market share and also to retain large number of customers, to know customer
satisfaction for the services provided by komul is the need for the study.

The main need to study about the company is to know whether they satisfied the customer needs
and the customer are satisfied with the service or not. It helps to determine the post-purchase
feedback customer to improve the delivery and service of the product. Help a company to build a
long relationship with the customers.

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 Kolar-Chikkaballapura District Co-operative Milk Producers Union Ltd

Objectives

 To gain an understanding of the organization of CHIMUL, Chikkaballapur.

 Research the "Nandini Brand" product line.
 To comprehend the marketing of various Nandini products in the Chikkaballapur district.
 Determine the effectiveness of Nandini product distribution in the Chikkaballapur district.
 To suggest / recommend ways to improve Nandini product distribution.

Scope of the study

The geographical scope of the study is limited to the district of Chikkaballapur. The study covers
various Nandini Milk Products that satisfy the customer on their test, interest, price, and quality.
The various customers were met to find out their performance and response about the Nandini
Milk Products.

The following tables and charts, which are based on the study, show how consumers feel about
Nandini milk products and provide a brief analysis and interpretations of those feelings. I used a
questionnaire to help me gather the data. I used a bar chart to create a graph to display the
analyzed data.
This study is being carried out by the KMF Bangalore unit. The survey's findings are: Data
Interpretation and Graphs:

Table4.1: Table Showing Representation of respondents classified based on gender.

Respondents Noofrespondent Percentage

Male 73 66.36%
Female 37 33.63%
Total 110

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Analysis
From the table above, it can be seen that respondents are fairly evenly distributed between males
and females,

Chart No 3.1: Chart Showing Representation of respondents classified based on gender.

Interpretation
In the above chart, which shows the gender distribution, we can see that there were 66.36% male
respondents and 33.63%%% female respondents out of l 10 respondents.

Table 3.2 Table Showing respondents who are familiar with the NANDINI brand.
Respondents Familiar with No of Respondents percentage
Nandini Brand

Yes 90 82.56%
No 19 17.43%
Total 109

Analysis
The majority of respondents are familiar with the Nandini Brand.

Chart No4.6: chart representing Respondents brand familiarity.

Interpretation
The information in the above table shows the respondents knowledge of the NANIDINI Brand
out of a total of 109 respondents. Among the respondents, 90 are aware of the brand, while only
19 have no idea what the Nandini brand is

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Chart4.7: Table showing respondents who have previously purchased NANDINI Product
are listed in a table:
Response No of respondents Percentage

Yes 100 91.74%

No 9 8.56%

Chart4.7: Chart showing respondents Product purchase

Interpretation
From the chart above, it is evident that most of the respondents have purchased the Nandini
products only 8.56% have not purchased.

Table4.10: Table showing how frequently do Respondents buy Nandini Products.

Respondents No of respondents Percentage

Monthly 11 9.9%
Weekly 41 37.6%

Rarely 10 8.9%
Daily 48 43.6%

Analysis

Table represents how often does the respondents buy Nandini products.

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ChartNo4.10: Chart showing how often Respondents Purchase Nandini Products.

43.6%

37.60%

9.90% 8.90%

Interpretation
Out of I 10 respondents 9,9% of people purchase milk monthly, 37.60% of respondents
purchase weekly and 8.90% of purchase rarely and43.60% respondents purchase daily.

Table4.14: Table representing respondents’ opinions on product satisfaction.

Response Respondents Percentage

Yes 88 80%

No 22 20%

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Chart4.14: Graph Showing Respondents Attitudes towards Product Satisfaction.

Interpretation
The above chart represents the frequency of the respondents who are satisfied with
NANDINIproductspricingomotalmost88respondentstelthathatheyaresatísfiedwith the NANDINI
product pricing and 22 respondents say that they are not satisfied with the Nandini products
pricing.

Table4.21:Table showing Respondents about the products which respondents consume most.

Response No of Respondents Percentage

Nandini 71 65.3%

Dodla 7 6%
Amul 22 20%
Arokya 3 3%
Hatsun 2 2%
Nestle 4 4%

Analysis

The table indicates which products the consumers prefer most and Nandini dairy products are
used most by the customers.

Chart4.21 Graph Representing the products that consumers use the most.

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Interpretation
According to the customers who were surveyed, Amul and Nandini appear to be the two most
widely used dairy brands. Dodla, Nestle, Arokya, and Hat sun are among the other brands with
smaller but still sizeable consumer bases in this market.

KARNATAKA MILK FEDERATION (KMF):

The governing body for dairy farmers' cooperatives in Karnataka is called the Karnataka
Cooperative Milk Producers' Federation Limited (KMF). Out of all the dairy cooperatives in the
nation, it is the second largest. Both in terms of sales and procurement, it is the best in South
India. Marketing of Milk and Milk Products is one of the Federation's primary duties. The name
"Nandini" is synonymous with pure and fresh milk and milk-related products.

In Karnataka, there are 13 Milk Unions operated by KMF that buy milk from Primary Dairy
Cooperative Societies (DCS) and distribute it to customers in various towns, cities, and rural
markets.

KMF is in charge of developing the market for Milk and Milk products as well as coordinating
activities among the Unions. The relevant Milk Unions are in charge of organizing the marketing
of Milk in their respective jurisdictions. The Federation keeps track of liquid milk surpluses and

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Deficits among its member Milk Unions. Even though KMF manages the marketing of all milk
products both inside and outside the state, they are all sold under the same brand name,
NANDINI.

Need for the study

In this today's modern market customer satisfaction among customers has its majority of the roles
in the service turnover of the company, every business invest heavily aspect to build a strong
image and gain market share and also to retain large number of customers, to know customer
satisfaction for the services provided by komul is the need for the study.

The main need to study about the company is to know whether they satisficed the customer needs
and the customer are satisfied with the service or not. It helps to determine the post-purchase
feedback customer to improve the delivery and service of the product. Help a company to build a
long relationship with the customers.

Objectives

o To gain an understanding of the organization of CHIMUL, Chikkaballapur.

o Research the "Nandini Brand" product line.
o To comprehend the marketing of various Nandini products in the Chikkaballapur district.
o Determine the effectiveness of Nandini product distribution in the Chikkaballapur district.
o To suggest / recommend ways to improve Nandini product distribution.

Scope of the study

The geographical scope of the study is limited to the district of Chikkaballapur. The study covers
various Nandini Milk Products that satisfy the customer on their test, interest, price, and quality.
The various customers were met to find out their performance and response about the Nandini
Milk Products.

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SWOT ANALYSIS:-

INTRODUTION:-
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. Strengths and weaknesses
are internal to your company- things that you have some control over and can change. Examples
include who is on your patents and intellectual property, and your location. SWOT analysis is a
framework used to evaluate a company's competitive position and to develop strategic planning.
SWOT analysis assesses internal and external factors, as well as current and future potential.

1. STRENGTHS OF KOMUL:-

Various new technologies implemented for production of milk Transportation vehicle ISO
22000-2018 certification. Halal certification. Friendly working are UHT milk. Ability to
maintain uniform quality

2. WEAKNESS OF KOMUL:-

Promotion strategies are not effective. Duo to Government interference between company
management activity there is a delay successful strategy. Not concentrating on advertisement.
Less focus on innovation product. Strong competition form milk companies like Amul, Dodla
etc.. less focus on innovation products.

3 OPPORTUNTIES OF KOMUL:
Expansion of retail market and milk Parlors through the district to improve. Sale and increase
profitability. To promote the awareness among the people. Increasing the penetration of
products. It is already making different milk products and so it can go for other milk products.

4 THREATS FOR KOMUL:

Competition from private co-operative dairies. Entry of MNC's into dairy industry. Lack of
awareness about the various of products among the people. Unethical marketing practices of
private brands in the market. Introduction of foreign brands in Indian market.

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Suggestions to improve experimental learning:-

L.On-Farm Workshops- Organize workshops or training sessions directly on KOMUI. Farms

where members s can learn through hands-on experience. These workshops could cover various
aspects such as animal husbandry, fodder management, breeding techniques, and milk
processing.

2. Field Trips- Arrange field trips to successful dairy farms or agricultural research institutions
where KOMUL Members can observe best practices in action and interact with experts in the
field.

3. Demonstration Plots- Set up demonstration plots on KOMUL farms to showcase different

agricultural techniques, crop varieties, or livestock management practices. Members can actively
participate in maintaining these plots and learn from the outcomes.

4, Experiment Trials- Conduct small-scale experiments or trials on certain aspects of dairy

farming, such as testing different feed formulations, evaluating the effectiveness of certain
breeding methods, or trying out new milking technologies. Members can actively participate in
planning, implementing, and analyzing these experiments.

5. Peer Learning Groups- Facilitate peer learning groups where KOMUL members can share
their experiences, successes, and challenges with each other. This allows for informal knowledge
exchange and encourages collaborative problem-solving.

6. Internship Programs- Collaborate with agricultural colleges or institutions to offer internship

programs for KOMUL members. This provides them with the opportunity to gain practical
experience and exposure to modern farming techniques under the guidance of experts.

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CHAPTER IV: INTERNSHIP QUTCOMES AND CONCLUSION

 It is found that the current assets and current liabilities are increased in the previous ycar
figures in the year 2022-23.
 The net working capital was decreased in the year 2020-21 is 565.22 and highest is 810.27 in
the ycar 2019-20.
 From the above data working capital has fluctuating the year to year and nct sales highcst in
present ycar 2022-23 was IS8.26.
 The above data capital turnover ratio increascd to 23.87 in the ycar 2022-23 compared to the
21.75 in the year 202 1-22.
 The net sales was consistently increasing for the S years. The best net sales is 1582.60 in the
year 2022-23 and fixed assets variance of ycar to ycar.
 It is found that the fixed assets turnover atio was increasing for the before 3 years. The
highest ratio is 784.16 in the year 2022-23 and lowest is 584.61 in the year 2019-20. The net
sales has consistcntly increased in the 5 years. The cash was decreased compared to the previous
ycar.
 The cash turnover ratio was increasing the year 2022-23 was 473.76. the year 2019-20 it was
decreased 245.27.
 From the above data we can analyse that the operating profit is fluctuating during the year
2018-19 to 2022-23.
 The operating profit ratio increased to 66.05 in the ycar 2021-22 compared to the 23.96 in the
present ycar.
 From the above data average debtors was fluctuating the year to year. The credit sales was
increasing in the year of 2018-19 to 2022-23.
 The debtors turnover ratio is variation among the period of 5 years. In the year 2020-21 is
0.442 is C the highest. 2019-20 is 0.214 is the lowest ratio.
 From the above data we can analyse the credit purchase fluctuating during the 2018-19 to 2022-
23. And average creditors decreased to comparing the previous year.
 The creditors turnover ratio was fluctuation of 5 years. In the year 2020-21 the ratio was
0.146 it is the highest ratio. In the year of 2019-20 is 0.103 it was lowest ratio.

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 From the above data we can analyses that the current assets are increased compared to
previous year. And current liabilities also increased in the ycar 2022-23.

 It found that the quick ratio in this we can analyses that the year 2022-23 is 0.21l it is highest
ratio. and in the year 2018-19 was 0.132 it is the lowest.

 From the above data we can analysis that that the cost of sales is increasing continues. And
average inventory is fluctuating among 5 years. In the year 2022-23 it was highest 759.22 and in
the year 2018-19 was lowest 537.4|.

 From the above data we can find inventory turnover ratio. In the year 2021-22 it was a highest
0.26 and in the year 2022-23 was lowest 0.20.

 The current assets variation of 5 years. In the year 2022-23 it was highest 258.35 and in the
year 2018-19 it was lowest 193.85. and current liabilities as in the year 2022-23 it was highest.
103.81 and in the year 2020-21 it was a lowest 75.91.

 The current ratio is fluctuating in the year to year. In the year 2018-19 was 2.00 is the lowest
and in the year 2022-23 was highest 2.8. So we found the company have a good capital
structure.

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BIBLIOGRAPHY

REPORTS
1. KOMUL Annual Report. Kolar-Chikkaballapura District Cooperative Milk Producers Union
Limited, [Last 5 years].

2. KOMUL Financial Statements. Kolar-Chikkaballapura District Cooperative Milk Producers

Union Limited, [Last 5 years).

3. Industry Reports on Dairy Sector in Karnataka.

WEBSITES

www.investopedia.com

www.wikipedia.com

www.kmf.com

www.komul.com

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ANNEXURES

1. Balance Sheets.
2. Income Statement (Profit and LOSs Statement).
3. Cash Flow Statement.
4. Notes to Financial Statements.
5. Financial Ratios Analysis.
6. Breakdown of Assets and Liabilities

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