INTRODUCTION In our present day economy, finance is the provision of money at the time when it isrequired.

Every enterprise whenever big, medium or small needs finance to carry on itsoperations and to achieve its target. In fact, finance is so essential today that it is rightly said that,it is the life blood of an enterprise without adequate finance, no enterprise can possibleaccomplish.Finance guides and regulates investments decisions may be pertaining to capitalexpenditure and revenue expenditure. To get the best out of the available funds is the major task of financial management. The finance manager should perform his task most effectively. Finance is the lifeblood of business. It is rightl y termed as the science of money. We hold finance for the productio n of goods and services as their distribution. The term business finance indicates an activity or a process, which is concerned with acquisition of funds,allocation of funds and finance controls.The finance requirements of a company can be broadly classified into a long term,medium term and short-term finance. Long term finance is needed for buying machinery andequipment or for the provision of land, factory building and other fixed assets. Medium termfinance is needed for small tools, implements and major repairs. Short term finance is requiredfor new months for the purchase of raw materials for processing and meeting expenses likewages, salaries etc. in order words to meet its working capital requirements.Accounting and other business functions. The wastage of funds can be avoided. Thefinance functions is not just a service function through it is generally viewed as one of the mostimportant decisions on the basic of availability of funds. In the finance function bended withproductions marketing, personal.

PROCUREMENT In total 1100 milk producers co -operative societies are affiliated and 932 societies arefunctioning. The milk is collected through 55 milk routes daily ranging from 2.5 lacks liters of milk per day depending on the season.The procurement and input operation are managed through8 milk procurement team officesat Salem, sankari, namakkal, p.velur, attur, rasipuram, mettur, and valapady. The milk isdelivered at the dock of the three chilling centers at namakkal, p.velur, attur and the main dairy atSalem for chilling. INPUT

Artificial insemination service input veterinary service and emergency veterinary serviceand being provided to the animals of the producers in societies by the veterinarians of this union.Further, artificial inseminations with exotic, cross bred and murrah bull semen are beingundertaken through the 564 artificial insemination sub-centers of the primary societies / unionand doing on an average of 26,000 artificial insemination per month. Nutritious cattle feed isbeing supplied to the members at par rate. FODDER The union has taken up cultivation of fodder crops like cumbu Napier, hail grass, buffaloesgrass, subabul, sithakathi cholam, cumbu, maize, cowpea and hedge Lucerne etc. for distributionof seed materials to the milk producers through milk co-operative societies at free of cost/atnominal cost.

TRAINING CENTRE The union had setup a training center in the year 1985 under operation flood. The trainingcenter is imparting training to the DCS personnel of our union and also forms periyar,Coimbatore and nilgiris unions.The training centre conducts the programmers such as:

Secretary training

Milk tester training

A.H.Worker

Management committee members

Dairy animal management training

A.I.Refresher training

Cluster A.I. Training

2.2 INDUSTORY PROFILE It is proposed to organized and assist 25 women dairy co-operatives both in Salem andnamakkal districts during the period from 2002 to 2005, involving 1750 women membersthrough self help groups. The proposed 25 dairy co-operative will have 70 members in eachsociety and they will be identified, trained in all aspects of dairying and monitored continuouslyfor their economic enlistment.The dairy has installed capacity to process 3lakhs liters of milk per day, to produce 10 MTof skim milk powder 9 MT of butter and 6 MT of ghee. The quantity of milk available after localsales and dispatch to Chennai is converted into products viz., butter, ghee and skim milk powder.Ghee and skim milk powder are being solid in the markets all over India through the Tamil nadirco-op. Milk producers federation Ltd., Chennai with Agmark and ISI grades respectively. Our products bear the famous brand name of AAVIN. I.S.O. 9002 Certificate also obtained for production and supply of milk, skim milk powder, butter, ghee and UHT milk in tetra pack.

ASEPTIC PACKAGING STATION Ultra high temperature treated milk has a shelf life of 120 days at room temperature withoutrefrigeration. For ultra high temperature treatment, milk of low bacteriological count is taken and is subjected to high temperature of 140 degree C gradually (Exposed for 2 seconds) and cooled back to ambient temperature and packed in sterile aluminum foil polythene paper in the shape of brick.The main advantages of ultra high temperature treated milk are:

No refrigeration is required.

Very hygienic and no adulteration can be done.

Single way transportation, easy for storage, pilfer-proof and convenience to consume.

Reasonable price. QUALITY CONTROL The role of the lab is to assist in stage-wise testing and reporting the quality status of milk processed and standardized so that milk of the correct standards are prepared and marketed.Similarly cream, butter, butter-milk, ghee and skim milk powder are tested at regular intervalsboth during production and storage to check that there is no quality deterioration.Water, cleaning chemicals asking materials, etc., are also tested regularly to ensure theirconformity to pre-set standards. The bacteriologists check incoming and processed in milk andalso milk products in addition to water & environmental air to ensure that they are they alsocheck the sterility of plant and equipment to ensure their hygienic status. The dairy has aneffluent treatment plant. The effluent is tested periodically to ensure that it satisfies the standardsprescribed by the Tamilnadu pollution control board.

CANTEEN The company provides canteen facilities for all employees satisfying their physiologicalneeds at subsidized rate. SAFETY The company through safety committee provides safety measures to workers in the company.There is first-aid and provide firing equipments

COMPARATIVE

BALANCE

SHEET

AS

AT

31

MARCH

2010particular As at 31.03.10 As at 31.03.09Increase orDecreaseI. SOURCES OF FUNDS a) share holders fundsi) Share capital 26348000.00 26348000.00-ii) Reserve & Surplus 1975899.43 1975899.43iii) Secured loans 136988.26 10040596.479903608.21iv) Unsecured loans 200096993.55 145567086.1454529907.41 Total 228557881.24 183931582.2444626299II.APPLICATION OF FUNDS

a)

Fixed

assetsi) Gross block 136720699.37 115130573.7121590125.66ii) Less: Depreciation reserve 103931483.18 1040 77229.20-145746.02iii) Net block 32789216.19 -32789216.19iv) Capital W.I.P 44266936.38 -44266936.38 Total 77056152.57 11053344.5166002808.06 b) investments 100.00 100.00-i)Inventories 3954924.54 60161085.8456206161.3ii)Sundry debtors 7278916.00 11899360.494620444.49iii) Cash and bank balance 938363.02 466642.33471720.69iv) other current assets 8014014.24 82147 37.78-200723.54v) Loans & advances 2033221.91 6503494.35-4470272.44 Total 57813761.71 87245320.79-29431559.08 Current liabilities and

provisioni)Current liabilities 71350077.50 38714577.4932635500.01ii)Provisions 29765284.05 29317972.00447 312.05 Total 101115361.55 68032549.4933082812.06 Net C.A / liabilities (A-B) 43301599.84 19212771.3024088828.54d) inter sub-office C.A/C 358246.00 358246.00Inter-unit current account 8215908.48 8215908.48Balance as per annual account 186229074.03 153665366.2332563707.8 Total 228557881.24 183931582.0444626299.2

COMPARATIVE

BALANCE

SHEET

AS

AT

31

MARCH

2011Particular As at 31.03.11 As at 31.03.10Increase orDecreaseI. SOURCES OF FUNDS a) share holders fundsi) Share capital 26348000.00 26348000.00-ii) Reserve & Surplus 1975899.43 1975899.43iii) Secured loans 509655.46 136988.26372667.20iv) Unsecured loans 278130115.00 200096993.5578033121.4 5 Total 306963670.07 228557881.2478405788.83II.APPLICATION OF FUNDS a) Fixed

assetsi) Gross block 211113843.97 136720699.3774393144.60ii) Less: Depreciation reserve 1052111537.18 103 931483.18948180054iii) Net block 105902306.79 32789216.1973113090.60iv) Capital W.I.P 6815954.23 4426 6936.38-37450982.15 Total 77056152.57 77056152.57b) investments 100.00 100.00i)Inventories 25324162.41 3954924.5421369237.87ii)Sundry debtors 5780936.84 7278916.001497979.16iii) Cash and bank balance 49209.72 938363.02889153.30iv) other current assets 8442328.07 8014014.24428313.83v) Loans & advances 660737.30 2033221.9 1-1372484.61 Total 40257398.34 57813761.71-17556363.37 Current liabilities and provisioni)Current liabilities 25209924.40 71350077.50-

46140153.1ii)Provisions 31101247.00 29765284.051335962.95 Total 56311171.40 101115361.55-44804190.15 Net C.A / liabilities (A-B) 16053803.06 43301599.84-27247796.78d) inter sub-office C.A/C - 358246.00 358246.00Interunit current account 35366346.70 8215908.4827150438.22Balance as per annual account 245665458.81 186229 074.0359436384.78 Total 303963670.07 228557881.2475405788.83