Introduction company

of

the

The Punjab State Civil Supplies Corporation Limited, popularly known as PUNSUP, came into being on February 14, 1974, as a wholly owned Government Company registered

under the Companies Act, 1956, having its Registered Office at Chandigarh, controlled by the Board of Directors headed by the Chairman nominated by the State

Government, with executive powers vested with the Managing Director, in accordance with the provisions of its Memorandum & Articles of Association, in order to run the

day to day affairs of the corporation, with the main motto to uplift the farming community on one hand by procuring their produce on Minimum Support Price (MSP) fixed by the Government of India and on the other to provide food-grains & other essential commodities to the weaker section of the society on subsidized rates under Public Distribution System (PDS), including Atta Dal Scheme of Punjab Government, besides providing the items of daily use and LPG to the consumers of the State on lesser rates than prevailing in the market.

Financial Management
Men, Money, Machines, Materials and Market are the Vital tools of Management to run an organization in a proper manner. In an organization like ours, money is the center axle around which all organs revolve. Since procurement of food grains is one of our major activities, funds are required in huge quantum first for its procurement, then for maintenance of its health till stocks are moved out to the FCI. Against its Authorised Capital of Rs.5.00 Corers, the State Government has invested Rs. 3.73 Cores as Paid-up Capital. It is wonder of the wonders

that with a meager amount of Rs.3.73 Cores, PUNSUP has been successfully carrying out the business activities to the tune of about Rs.5000 Cores annually besides providing direct employment to the extent of 2100 people. Under these circumstances, whole of the business is carried out by availing Loans & Cash Credit Limits from commercial banks, for which huge part of its earning in the shape of Interest is out flown. Despite the fact that the entire business activities are carried out with the borrowed funds, PUNSUP has successfully created fixed assets to the extent of Rs.2868.53 Lac as on 31-03-2010. Further, it has been earning substantial profits by making saving in its day to day expenditure as well in the interest burden which is evident from its

Annual Accounts for the year ending as at 31/3/2010 It is worth-mentioning here that PUNSUP is one of the few food-grains companies, not only in the State of Punjab but at national (Profit level, & Loss whose Annual and Accounts Account

Balance Sheet ) are being compiled, audited and finalised within the given time under the provisions of Companies Act, 1956.

Manpower & Employment

At the time of its incorporation PUNSUP began with a very small number of people and majority of from them Food were & taken on deputation Supplies

Department, Punjab. With the passage of time PUNSUP strengthened itself with the recruitment force is to of the competent tune of & qualified 2100 personnel at various levels. Today its total about employees including managerial, supervisory & field staff as against its sanctioned strength of about 3200 peoples. Apart from this, it has given indirect employment to thousands of people in the State of Punjab like daily-wage-workers required for procurement of Wheat & Paddy in mandis, transporters for lifting of stocks, depotholders for PDS etc.etc. A copy of existing

list of Board of Directors, Officers at Head Office, Officers in District Offices, as well the Organizational Chart of PUNSUP Head Office and District Offices, PUNSUP's Service Bye-Laws of 1985 is given separately.

Activities
As is evident from its introduction, the main activity of PUNSUP is procurement of wheat & paddy for Central Pool under Minimum Support Price (MSP) Scheme of Government of India. However, it is fully involved in Public Distribution System besides running commercial & distribution activities, briefed as under:

 PROCUREMENT FOODGRAINS i) Wheat and paddy

OF

Being one of the State procuring agencies for procurement of wheat & paddy in the State of Punjab to contribute towards Central-pool, PUNSUP procures foodgrains at minimum Support Price, as fixed by the Government of India. This is a direct service to the farming community in the State of Punjab. PUNSUPs share is about 20% of the total procurement of wheat & paddy being procured by all the

agencies. After procuring the wheat, it is hygienically & scientifically stored until it is moved out to FCI as and when demand is raised. So far as paddy is concerned, after procurement, it is stored with the allotted rice millers, scattered throughout the State of Punjab, under joint custody, for custom milling. After milling, the rice so converted is delivered by the millers to FCI in PUNSUPs account. During Rabi 2008-09, it has procured wheat to the extent of 23.71 Lac MTs as against 17.78 Lac MTs during previous year. Further, during kharif 2008-09, paddy to the extent of 27.16 Lac MTs has been procured as against 26.10 Lac MTs during the.previous.year.

ii) accommodation

Storage

PUNSUP has its own covered and open storage to the extent of about 1.57 Lac MTs and the rest is hired from private parties as well from the warehousing corporations.

iii) Stock articles

For procurement of wheat & paddy, indents for gunnies are placed by the Directorate of Food & Supplies, Punjab with DGS&D, Government of India, on behalf of all the procuring agencies at the rate fixed by the

Government of India from time to time. For procurement of LDPE covers, PUNSUP is the nodal agency for making necessary arrangements for all the procuring agencies of the State. For this purpose tenders are floated usually twice in a year for the rate contract applicable for crop after crop. So far as wooden crates are concerned, earlier these were fabricated at PUNSUPs own saw-mills at Samrala, Kot-kapura and Garh Shanker. With the slow movement of stocks previously, the saw-mills were shutdown and now crates are being purchased from open market. Further, proper planning is made for purchase of fumigants required

for fumigation of wheat stocks so as to maintain the health position of wheat stocks procured.

B).COMMERCIAL DISTRIBUTION i) Public System

&

Distribution

PUNSUP being a nodal agency for Public Distribution System (PDS) in the State Price of Punjab, distributes sugar, wheat, rice etc. at about 14000 Fair Shops the (Depots) State of scattered Punjab, throughout areas.

majority of which are situated in rural

ii) Atta Dal Scheme

The job for distribution of wheat & pulses under the prestigious Atta Dal Scheme of the State has been assigned to PUNSUP, which is being run successfully since August, 2007. Under this scheme, wheat at the scale of 35 Kgs per family @ Rs.4/- per Kg. and pulses upto 4 Kgs. Per family @ Rs.20/per Kg., are distributed amongst about 13 Lac families, every month.

iii) Sales Bazaars

outlets/Apna

PUNSUP has a chain of 8 Nos. of retail sale out-lets/ Apna Bazaars in the State of Punjab at Chandigarh, Ropar, Mohali, Nangal, Ludhiana, Patiala,

Hoshiarpur & Bathinda in order to cater to the daily use items like, pulses, vegetable oils, sugar, atta, tea, toiletries, confectionary etc. etc. at most competitive price.

iv) LPG Sales Outlets

PUNSUP has a chain of 8 Nos. of LPG distribution agencies in the State of Punjab, stationed at Amritsar, Barnala, Bathinda, Fatehgarh Sahib, Jalandhar, Kharar, Ludhiana & Muktsar, started since 1982. In addition to it, it has a Diesel Pump at Jalandhar

v)..Supply of pulses to Army Purchase Organization (APO):

In order to provide the services to the defence personnel, PUNSUP participates in tenders floated by the Army Purchase Organization, Ministry of

Defence, Government of India, New Delhi for procurement of pulses, through its Liaison Office at New Delhi, for which substantial business activities are transacted every year on assured profit basis.

vi) Mid Day Meal

PUNSUP is a nodal agency for distribution of foodgrains under Mid Day Meal Scheme of Government of India vides which the stocks of food grains are taken from FCI godowns and distributed of Punjab. amongst thousands of schools scattered throughout the State

vii) Transportation
In order to cater to the consumers of the State in more effective way and run its other activities, PUNSUP has a fleet of 43 vehicles, comprising of HTV trucks, Mazda trucks, LCVs. On one hand, these vehicles facilitate in speedy distribution of essential commodities and on the other this fleet helps in carrying stock articles from one station to another. With this fleet, PUNSUP has been saving a considerable amount, ranging from Rs.80 Lac to Rs.110 Lac

every year, as against by getting got done by hiring private vehicles.