1

THE STUDY ON BANK RECONCILIATION STATEMENT IN

VERKA MILK PLANT MOHALI S.A.S NAGAR DISTRICT.
ROPAR (PUNJAB)
A SUMMER INTERNSHIP REPORT

SUBMITTED TO
THE DEPARTMENT OF PROFESSIONAL EDUCATION
GOVT.PG COLLEGE, UNA
IN PARTIAL FULFILLMENT FOR THE DEGREE OF
MASTERS OF BUSINESS ADMINISTRATION (MBA)
TWO YEAR FULL TIME COURES (2017 – 2019)

SUBMITTED TO: SUBMITTED BY:

Ms. AARUSHI SHARMA RANJNA DEVI
DEPTT OF PROFESSIONAL EDUCATION MBA (3 RD SEMESTER)
GOVT PG COLLEGE, UNA UNIVERSITY ROLL NO.17MBA0255
2

ACKNOWLEDGEMENT
I am highly indebted to the management of VERKA MILK PLANT MOHALI to undertake me as
training in their organization. I would like to thank specially CA Mdhusudan Goyal (DMA) for
providing me an opportunity to undertake training at VERKA MILK PLANT MOHALI.
I wish to express my gratitude towards official of finance department for permitting me to work
under their guidance & cooperation. I have no words to express my gratitude to the profound
interest taken by them at every stage of the project. Their encouragement and support made
my target easily achievable.
I am heartily thanking my project report in charge Prof. AARUSHI SHARMA, faculty GOVT P.G
COLLEGE UNA. Whose encouragement, guidance and support from the initial to the final level
enabled me to develop an understanding of the Subject. I am grateful for madam’s contribution
towards the execution of my project.
3

PREFACE
For the completion of the M.B.A it has been mandatory to obtain an Industrial Training in
Finance. This training session really help me in gathering knowledge of market.
I have prepared this project “FINANCIAL ANALYSIS AT VERKA MILK PLANT MOHALI” in which I
have written about how an organization can manage its BANK RECONCILIATION STATEMENT in
its daily business operations.
This report is prepared during training is life’s greatest treasure as it is full of experience,
observation & knowledge. The training held was very gainful as it looks us close to real life. This
period also provide a chance to give theoretical knowledge a practical result.
This report is the result of 45 days training that I have taken at VERKA Milk Plant Mohali. It has
been very educative & fruitful experience for me for it has given me an insight into some
practical experience.
I wish this great organization success so it may flourish & serve the nation and have achieved
many goals.
4

STUDENT DECLARATION
I am student of MBA 3rd semester, studying at GOVT.P.G. COLLEGE UNA hereby declare that the
project report on “Bank Reconciliation Statement” submitted to H.P.T.U. HAMIRPUR in partial
fulfillment of the requirements for the degree of “MASTER OF BUSSINES ADMINSTRATION” is
the original work conducted by me.

The information and data given in the report is authentic to the best of my knowledge.

This project report is not being submitted to any university for award of any other Degree,
Diploma and Fellowship.
5

Table of content
6

Chapter 1
INTRODUCTION
7

BANK RECONCILIATION STATEMENT:-

Bank reconciliation statement is a process that explains the difference on a specified date
between the bank balance shown in an organization’s bank statement, as supplied by the bank
and the corresponding amount shown in the organization’s own accounting records.
Such differences may occur, for example, because
 Cheques issued by the organization have not been presented to the bank
 A banking transection, such as a credit received, or a charge made by the bank, has not
yet been recorded in the organization’s books
 Either the bank or the organization itself has made an error.

Sometime it may be reconcile the difference by looking at very recent transactions in the bank
statement and the organization’s own accounting records (cash book) and seeing if some
combination of them tallies with the difference to be explained. Otherwise it may be necessary
to go through and match every transection in both sets of records since the last reconciliation,
and see what transections remain unmatched. The necessary adjustments should then be made
in the cash book, or reported to the bank if necessary, or any timing differences recorded to
assist with future reconciliations.
A Bank Reconciliation Statement is a statement prepared as part of the reconciliation which
sets out the entries which have caused the difference between the two balances.

THE PURPOSE OF THE BANK RECONCILIATION STATEMENT:-

 It reflects actual bank balance position
 Detect mistake in cash book or pass book
 Prevent frauds in recording banking transections
 Explain any delay collection of checks
 It identifies valid transection recorded by one party but not by other

NEED AND IMPORTANCE OF BANK RECONCILIATION STATEMENT:-

 Bank reconciliation statement ensures the accuracy of the balances shown by the pass
book and cash book.
 Bank reconciliation statement provides a check on the accuracy of entries made in both
the books.
8

 Bank reconciliation statement helps to detect and rectify any error committed in both
the books.
 Bank reconciliation statement helps to update the cash book by discovering some
entries not yet recorded.
 Bank reconciliation statement indicates any undue delay in the collection and clearance
of some Cheques.

CASH BOOK:-
A cash book is a special journal which is used for recording all cash receipts and all cash
payments. All cash transactions are first entered in the cash book and then posted from cash
book into the ledger. Practically, the cash book is substitute for cash account in the ledger.

Features of cash book:-

1. Only cash transactions are recorded in the cash book.
2. It performs the functions of both journal and the ledger at the same time.
3. All cash receipts are recorded in the debit side and all cash payments are recorded in
the credit side.
4. All cash transactions are recorded chronologically in the cash book.
5. It recorded only one aspect of transection, cash.

Type of cash book:-

1. Simple cash book or single column cash book – For recording cash transactions only.
2. Two - column cash book (cash book with cash and bank column) – for recording cash
and bank transactions.
3. Three – column cash book (cash book with cash, bank and discount columns) – for
recording cash and bank transactions involving allowed or received on account of
discount.
4. Petty cash book.
9

Pass Book:-
It is a book issued by the bank to the account holder which records the amount deposited
in/withdrawn from the respective account dring a particular period is tracked. It is a snapshot
of customers account in the banks book. With the help of pass book, banks inform their
customer about the status of their account.

DIFFERENCE BETWEEN CASH BOOK AND PASS BOOK:-

BASIS FOR
CASH BOOK PASSBOOK
COMPARISON

A book issued by the bank to the

A book that keeps a record of
account holder that records the
Meaning cash transactions is known as
deposits and withdrawals is known as
cash book.
passbook.

Prepared by Firms Bank

Receipts will be shown in the Deposits will be shown in credit side

Side affected debit side while payments are while withdrawals are shown in debit
entered in credit side. side.

Preparation Discretionary Compulsory

Recording of cheque Date on which the amount is actually

Date of deposit
deposited for collection collected from the debtor's bank

Recording of cheque When the amount is paid by the bank

Date of issue.
issued to the creditor to the creditor.

Debit balance shows cash at

What do the balances Debit balance shows overdraft while
bank while the credit balance
reflect? the credit balance shows cash at bank
shows overdraft.
10
11

Chapter 2
COMPANY PROFILE
12

1. INTRODUCTION TO ORGANISATION

THE PUNJAB STATE COOPRATIVE MILK PRODUCERS FEDRATION LIMITED; The Punjab state
co-operation Milk Producers Federation Limited (MILKFED) was established in 1973 by
Punjab Diary Development cooperation under the Punjab State Co-operation Act, 1967 to
safeguard commercial interest of milk producers farmers to save them from exploitation of
middleman, with their participation in its management and to provide quality milk and milk
products to consumers at competitive rates.

It come into existence with a twice objectives;

First, to carry activities for promoting production, procurement and processing of milk for
the economic development of milk producers by providing remunerative milk market to
them at their door step.
Second, provide quality milk and milk products to consumers at reasonable rates.
Although the federation was registered much earlier, but it came to real self in the year
1983 when all the milk plants Punjab Dairy Development corporation Limited were handed
over to cooperative sector and the entire State was covered under operation Food program
to give farmers to a better deal and our valued customers better products. Today when we
look back, VERKA has fulfilled the promise to great extent. The setup of the organization is a
three tier system, Milk producer cooperative societies at a village level, milk union at district
level and milk federation as an apex body at a state level.
Milk production is a very important part of agricultural economy in the state of Punjab.
Punjab is one of smallest state in Indian Union with a total area of 50,362 Sq. km. Dairy
farming is an old subsidiary profession in the rural area of Punjab. Punjab is the second
largest milk producing state in India, producing 10% of country’s milk.

Some facts about VERKA:

1. First Milk Plant of the state was setup at VERKA near Amritsar.
2. The brand name of Milk and Milk products was adopted as VERKA.
3. Commissioning of the Plant was done by Dairy Development Corporation in 1974.
4. The capacity of plant was 1 Lac Liter per day, including power plant of 7MT and now the
Milk plant with capacity of 4 lac liter per day.
5. Village level cooperative societies were also formed on “ANAND Pattern”. The system
was run by the farmers, of the farmers and for the farmers.
13

1.1 HISTORY OF PLANT

THIS PLANT HAS BEEN ESTABLISHED IN 1980 BY Punjab Dairy Development Corporation.
The Punjab Dairy Development Corporation and Milk fed are the two Government Dairy
Organizations which are running parallel to each other at this time. In 1982, both these
organizations submerged into one organization which is named as Milk Fed. Milk Fed came
into existence with twin objective of providing remunerative milk market to the milk
producers in the state by value addition and marketing of produce one hand and to provide
technical input to the milk producers for the enhancement of milk production on other
hand.
Set up of the organization is the three tier system, Milk produce’s Cooperative Societies at
the Village Level, 11 MILK Union at District Level, and Federation as an Apex Body at State
Level, ROPAR Milk Union, Mohali includes about 860 milk producers * cooperative societies
at the village level which are distributed under 12 Zones. Milk plant has installed capacity
to process 2, 00,000 liters of milk per day. Milk procurement is increasing gradually @5%
per annum.

1.2 ABOUT MILK PLANT MOHALI

It is the milk union amongst the 11 milk union under MILKFED Group which is located at S.
A. S Nagar, Mohali (PUNJAB). It was registered on 05/07/1980 under Punjab Co-operative
Societies Act, 1961. It started its operations on September, 1980.

1.3 PRESENT POSITION OF VERKA

Presently it has 856 societies and around 46000 members are supplying milk and making
their contribution to the Mohali (Punjab) Plant as follows:-
1. In ROPAR District 520 Village Societies.
2. In S. A. S Nagar, Mohali 164 Societies.
3. In FATEHGARH District 109 Societies.
4. In Patiala District 60 Societies.
5. In UT 3 Societies.

1.4 PRODUCTS OF MILK PLANT, MOHALI

1. Milk – standard Milk, DTM, Premium Milk, skimmed Milk

2. Cheese
3. Ghee – 1 liter MC, ghee 15kg Tin
4. Curd
14

5. KHEER
6. PLAIN LASSI
7. NAMKEEN LASSI

1.5 ORGANISATION NETWORK OF VERKA

The management manages various sections in order to ensure smooth functioning of the
plant. It is impossible for the management to take decisions on every problem so, various
duties and responsibilities are delegated to various sections performing particular
operations.
 15

MILK PLANT MOHALI

BOARD OF
DIRECTOERS

CHAIRMAN

GENERAL MANAGER

M (PROC) M (PROD) N (QC) M (MKT) M (HRD) M (A/C)

(
DM DM DM DM
DM DM

SUB OPERT JDC DM

JR. AS.
FSR

DM HELP LAB CLERK CLERK

AST. S.R
 16

GENERAL MANAGER

DM (PUR) DM (STORE) DM (MIS) INS SEC.

M (ENGG)

DM AST SK. SR ART

SEC.MEN

FOREMEN CLERK ASTS.K CLARK

MECHANICS

ABBREVIATIONS USED IN THE ORGANIZATION STRUCTURE

1. DM (Deputy Manager) ; SR (Senior) ; JDC (Junior Diary Chemist); S.K (Store
Keeper)
2. AST (Assistant); HELP (Helper); OPERT (Operator); INC.SEC. (In charge
Security);
3. SUP (Supervisor); F.S.R (Sales Representative)
4. PROC (Procurement); PROD (Production); QC (Quality Control); MKT (Marketing) HRD
(Human Resource Department); A/c (Accounts).
17

1.6 NETWORKS OF VERKA

VERKA is having an apex body at the sales land known as MILKFED Punjab. To star with
function in fields of different unions in different districts and to operate with Dairying and
dairy field that is the operation flood with assistance of National Dairy co-operation (NCD)
Delhi and later on is launched to operate flood second which is affiliated to Punjab
MILKFED. It helps its affiliation districts milk co-operation in 11 districts.

These Districts Unions are:

1. ROPAR Milk Union
2. Patiala Milk Union
3. Ludhiana Milk Union
4. FARIDKOT Milk Union
5. FEROZPUR Milk Union
6. SANGRUR Milk Union
7. BATHINDA Milk Union
8. GURDASPUR Milk Union
9. HOSHIARPUR Milk Union
10. Amritsar Milk Union
11. Jalandhar Milk Union
These Milk Union carry out smooth functioning of marketing procurement, cattle
breeding program through District Co- operative unions in 11 Districts of Punjab.
18

1.7 SWOT ANALYSIS OF VERKA

STRENGHTS:-

 Support of top management in the daily operations of the plant.

 Experienced, qualified and devoted work force.
 The brand name “VERKA”
 Own cattle feed plant and fodder seed grading station for supplying certified fodder
seeds.
 Good corporate governance and socially responsible organization.

OPPORTINITIES:-
 Feasibility of home delivery systems for city supply of milk to be implemented.
 Veterinary heath care and breeding facilities are to be increased for improving genetic
milk yielding characters of animals.
 General land of milk plant can be used for research and cultivation.

THREATS:-
 Non – adoption of daily farming as a side business by farmers.
 Increased salary bills as compared to turnover.
 Higher cost of raw material comparative to the pricing policy.
19

Chapter 3
RESEARCH
METHODOLOGY
20

 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. It may be

understood as a science of studying now research is done systematically. In that various steps,
those are generally adopted by a researcher in studying his problem along with the logic behind
them. It is important for research to know not only the research method but also know
methodology.”

 RESEARCH DESIGN

The research design is purely the framework or plan for a study that guides the collection and
analysis of data. It is blue print that is followed in completing a study. It may be a worthwhile to
mention here that a research design is essentially the framework for the study

 TYPES OF RESEARCH DESIGN

Research design is mainly of three types: -

1. Exploratory research
2. Descriptive research
3. Experimental research

1. Exploratory research: -
It is often the initial step in the series of studies designed to supply information for
decision making. The main purpose of this research is for formulating the problem for
more precise investigation or of developing a working hypothesis from an operational
point of view. The major emphasis in such studies is on the discovery of ideas and
insight.
21

2. Descriptive research:-
It includes surveys and fact-finding enquires. The descriptive typically concerned with
determining the frequencies with which something occurs or determining the degree to
which variables is associated. It is guided by an initial hypothesis.

3. Experimental research: -
In this some variables are manipulated to observe their effect on the other variables.
Experimentation is defined as a process where events occur in a setting at the discretion
of the experiment and controls are used to identify the source of the casual relationship
between variables.

 I have done Exploratory Research

 Sampling
A process used in statistical analysis in which a predetermined number of observations
will be taken from larger population. The methodology number of observations will be
taken from a larger population.

 Sample size
Number of the sampling units is selected from the population is known as sample size.
In this project sample size is 100 respondents.

 Sampling technique
Convenience sampling technique is use in this project.
22

 DATA COLLECTION
The work does not end by framing is design, it is necessary to acquire the various
details. The collected information is aimed at getting a truthful & clear result. The
results can be further analyzed to get the necessary inputs and is a tough task to
undertake. Hence the selection of best possible method for collecting data becomes
very vital for this type of study.
23

Chapter 4
On The Job Training
Experience
24

Chapter 5
FINDINGS
25