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NOTE ON ACTIVITIES OF GCC(February, 2011)

Submitted by

P.krishna lalitha

Roll no:-10L61E0024

CHAITANYA ENGINEERING COLLEGE (KOMMADI) VSP.

GIRIJAN CO-OPERATIVE CORPORATION LIMITEDEast Point Colony, Visakhapatnam - 530 017, AP, India

Phones: 0891 - 2796461, 2796463, 2796862 /Fax: 0891 2796345 / 2516300E-mail: [email protected] / [email protected]

Grams:GIRIJAN website: www.apgirijan.


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CONTENTS

CHAPTER-I INTRODUCTION OF THE TOPIC

Introduction Need for the study Scope of the study Objectives of the Study Methodology Importance of the study Limitations of the study

CHAPTER-II GIRIJAN COOPERATIVE CARPORATION LIMITED

Industry profile

Company profile

CHAPTER-III THEORETICAL FRAMEWORK OF THE STUDY

Theoretical Background of the study

\CHAPTER-IV DATA ANALYSIS & INTERPRETATION

CHAPTER-V SUMMARY & SUGGESTIONS

Summary

Findings

Suggestions

Conclusion

Bibliography


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CHAPTER-I

Introduction Need for the study Scope of the study Objectives of the Study

Methodology Importance of the study Limitations of the study


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INTRODUCTION

VARIANCE

Variances are deviations from plan. Think of variance as the difference between what

was planned and what actually occurred. There are two types of variances

1) positive variance 2) negative variance

Positive variance

positive variances are deviations from plan that indicates that an ahead of schedule

situation has occurred or that an actual cost was less than a planned cost.

Negative variance

Negative variances are deviation from plan that indicates behind schedule situation has

occurred or that an actual cost was greater than a planned cost.

The variance can be classified into two categories, on controllability.viz controllable

and uncontrollable variances.

Controllable variance

The difference in between standard cost and actual cost which was controlled.

Uncontrollable variance

The difference in between standard cost and actual cost cannot be controlled.

VARIANCE ANALYSIS

Meaning: The term Variance means derivation, difference and so on. The variance in

accordance standard costing is meant as the difference/ deviation in between two different costs

standard cost and comparable actual cost incurred during the period.

Variance analysis plays a major vital role for the critical success factor for any

factor.


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NEED OF THE STUDY

This is mainly used in production department and manufacturing units.

Its main purpose is to producing product expenditure in the past time compared to

Present time.

In the producing product, if using man power whatever profitable is come for particular

time period as well as present period.

SCOPE OF THE STUDY

Variance is a measurable change from a known standard or baseline. In other words, variance

is the difference between what is expected and what is actually accomplished.

In project management, variance baseline is established by identifying the cost, schedule and

scope. Scope defines all the work which needs to be done.

The project management team creates a work-breakdown structure (WBS) which is a

hierarchical view of all tasks to be accomplished.

The cost and schedule is then identified according to the work-breakdown structure (WBS).

The cost for each goal or task is estimated sometimes by using an average daily, hourly,

monthly or yearly rate.

The fixed costs are identified for each goal or task. In addition, the project management

workers estimate how long in days or hours a goal or task is to be accomplished, and then

they create a time-phased budget to quantify the performance cost.

After identifying the scope, schedule and cost, the project managers create a plan to manage

variances from the triple constraints of scope, schedule and cost. A positive variance means

the project is going on ahead of schedule or is under the cost. A negative variance means the

project is late or over the cost.

Variance tracking is key to project management and needs a logical approach. The project

mangers identify the variance thresholds and develop a plan in case it happens.

OBJECTIVE OF THE STUDY


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Variance analysis provides a framework for business managers to breakdown the overall

performance of an organization, so that each individual element of the business can be isolated

and analyzed in turn.

METHODOLOGY OF THE STUDY

The analysis of the project was based on the available information. Any information about the

topic is called the data. The data was gathered from various sources i.e., Primary and Secondary

sources.

Type of Data

1. Primary Data

2. Secondary Data

Primary Data

Any information which is collected afresh and for the first time is called primary data.

The primary data happen to be original in character. The information is gathered from concerned

employees. The employees and manager of the financial department have provided the

information needed for the study.

Secondary Data

Information which has already been collected by somebody else or some other agency

with definite purpose and which has already been processed is called secondary data. The

secondary data for the study have been gathered from the balance sheets, income statement,

annual reports and other books and manuals of the VISAKHAPATNAM PORT TRUST

IMPORTANCE OF THE STUDY


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Costs of production are effected by internal factors over which management has a large

degree of control.

An important job of executive management is to help the members of various management

levels understand that all of them are part of the management team.

Standard costs and their variances are an aid to keeping management informed of the

effectiveness of production effort as well as that of the supervisory personnel. Supervisors

who often handle two thirds of three fourth of the dollar cost of the product are made

directly responsible for the variance which, show up as materials variances (price, quantity,

mix, and yield) or as direct labor variances (rate and efficiency).

Materials and labor variances can be computed for each materials item, for each labor

operation, and for each worker. Factory overhead variances (spending, controllable, idle

capacity, volume, and efficiency) indicate the failure or success of the control of variable

and fixed overhead expenses in each department.

Variances are not ends in themselves but springboards for further analysis, investigation,

and action. Variances also permit the supervisory personnel to defend themselves and their

employees against failures that were not their fault.

A variance provides the yardstick to measure the fairness of the standard, allowing

management to redirect its effort and to make reasonable adjustments.

Action to eliminate the causes of undesirable variances and to encourage and reward desired

performance lies in the field of management, but supervisory and operating personnel rely

on the accounting information system for facts which facilitate intelligent action toward the

control of costs.


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CHAPTER-II

GIRIJAN COOPERATIVE CARPORATION LIMITED

Industry profile

Company profile


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Company profile

GIRIJAN CO-OPERATIVE CORPORATION:

Girijan Cooperative Corporation (GCC) established in the year 1956 for the

Socioeconomic uplift of Tribals in the state of Andhra Pradesh is serving around 4.0 Million

tribals out of total tribal population of 5.2 Millions in the State.

COMPANY BACKGROUND:In the year 1955, in order to improve the living conditions of the Scheduled

Tribes in the State through their economic uplift and to eliminate their exploitation by plains

men, the Government of Andhra Pradesh established "Andhra Scheduled Tribes Finance &

Development Corporation Ltd." as a Company under the Indian Companies Act, 1913 vide G.O.

Ms. No.2551, Education & Endowments Department, dt.14-12-1955. Again, the said corporation

was registered on 16-4-1956 under the new Indian Companies Act-I of 1956. But the

Government were confronted with the problem of providing adequate finances for the successful

working of the corporation. Keeping in view the virtual impossibility for the effective working of

the corporation as a company, the Government decided to go in for its voluntary liquidation and

to start a Cooperative Society in its place with the same objectives. Subsequently as ordered bythe Government in G.O. Ms. No. 2382, dt.11-10-1956, a Cooperative Society was registered on

26-10-1956 with the name "Andhra Scheduled Tribes Cooperative Finance and Development

Corporation Limited" under the Madras Cooperative Societies Act, 1932. In the year 1970, its

name was changed to the Girijan Cooperative Corporation Limited (GCC), Visakhapatnam.

Mission:

The mission of GCC is to keep the tribals of Andhra Pradesh, (economically the most

backward community of the state) smiling by improving their economic status.

Protecting the environment through regeneration of species of Minor Forest Produce.

Ensuring pure and natural products to the consumer at reasonable prices.


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II. OBJECTIVES

a) To ensure procure Non Timber Forest Produce (NTFP) collected by the Tribals and

also Agricultural Produce (A.P) grown by the tribal farmers duly paying them

remunerative prices and thereby eliminating middlemen and private traders who

were indulging in unfair trade practices.

b) To ensure supply Essential Commodities under the Public Distribution System

(PDS) and other daily requirements (D.Rs) at reasonable prices to the tribal

consumers through a net work of Daily Requirement (DR) sales Depots.

c) To provide Short-term credit to the tribal farmers for their seasonal agricultural

operation.

d) To undertake activities such as grading and processing / value addition to the NTFP

and Agricultural produce purchased from the tribals to realize better sale returns

and for this purpose to own or hire necessary plant and machinery.

e) To undertake generally such other activities as are conducive to the promotion of

economic interests and welfare of the Scheduled Tribes and for the attainment of

the above objectives.

COMPANY STRUCTURE:-

ORGANIZATIONAL HIERARCHY:

GCC is a state level Apex organization with its Head Quarters at Visakhapatnam governed by

the Board of Directors consisting of a Chairman, Official and Non-Official Directors nominated

by the Govt. of Andhra Pradesh.

The day to day affairs of the Corporation are administered by the Vice-Chairman & Managing

Director who is a Super Time Scale IAS Officer.


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The Project Officers of the Integrated Tribal Development Agencies (ITDAs) act as Executive

Directors of GCC in the area of their operation.

At present 1440 employees are engaged in the service of 2.6 million tribals through a network of

1 Regional Office at Hyderabad and 10 Divisional Offices coterminous with ITDA

Headquarters.

At present, 43 affiliated Girijan Primary Cooperative Marketing Societies (GPCMS) situated in

sub-plan mandals of the State are functioning.

GCC is having a wide network of 839 Domestic Requirement Sales Depots (DR Depots) in the

tribal habitats in order to cater to the needs of the tribal consumers by supplying them essential

commodities and other daily requirements. These depots function under the control of GPCM

Societies.

GCC is also having 3 industrial units viz., (1) Honey Processing Unit at Rajahmundry, (2)

Sheekakai & Soapnut Powder Making Unit, Rajahmundry and (3) Soap Making Unit at

Vizianagaram.

GCC is a state level Apex organization. Its activities are carried out through the affiliated

Primary Societies. The money required for the procurement of MFP and SAP are provided to the

Societies by GCC and the procurement is effected in weekly shandies and seasonal purchase

centres. The stocks procured are taken over from the GPCMS and marketed by GCC to the best

advantage of the MFP gatherers. The GPCMS are required to run the DR Depots on their own

with the working capital provided to them. The credit activity is carried out through GPCMS

duly providing them credit limit and advancing moneys in every season. The other activities

carried out by GCC include value addition measures to the tribal produce and its retail marketing

in the consumer market.

The Divisional Manager is the Head of the division. He supervises all the activities of the

GPCMS in his area of operation. He also acts as Chairman on the Board of Management of the

GPCM Societies.

The membership in the GPCMS is open exclusively for the local tribals and all members

enrolled form the General Body of the Society. The Board of Management of the Society

consists of three Elected Directors from among its members while six official Directors

including the Chairman are nominated by the District Cooperative Officer as per the directions of


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the Government. The day to day administration of the GPCMS is carried out by the Manager

who is also the Secretary of the Society under the overall supervision and control of the

concerned Divisional Manager. The D. R. Depots and Purchase Centers function under the direct

control and supervision of the Manager / Secretary of the GPCM Society.

The GPCM Societies are designated as Agents to GCC for the procurement of Minor Forest

Produce and Surplus Agricultural Produce (SAP) from the tribals in their respective areas of

operation. They receive money from GCC, procure the produce in the weekly shandies,

seasonally notified purchase centres and at the door steps of the tribals at prices fixed and

declared by GCC from time to time and handover the produce to GCC as and when procured or

once in a month. A commission @ 2% is paid by GCC to the GPCMS on the value of the

produce purchased and handed over to it.

The GPCM Societies run the DR Depots on their own with the working capital provided by

GCC. The major activity carried out by the Societies is lifting and distribution of Essential

commodities such as Rice, Sugar, Wheat, Edible oil and Kerosene under the Public Distribution

System (PDS) to the ration card holders and also supply of other daily requirements such as

dalls, oils, iodised salt, onions, jaggery, cosmetics and other items at reasonable rates to the tribal

consumers in general. The GPCMS also under take supply of food provisions and Cosmetics to

the Tribal Welfare Hostels, Residential colleges and schools of APTWREIS. The supply of food

provisions to Midday meals, Food work Program, and Grain Banks in tribal areas is also taken

up by the Societies. The maintenance of Mandal level stock points and transportation of

Essential commodities under Stage-II in the tribal areas on behalf of the A.P.State Civil supplies

Corporation, Supply of LPG, sale of Steel and cement etc. are the allied activities taken up by the

Societies as part of their D.Rs business.

GCC obtains credit limit from NABARD AND A.P.STATE COOPERATIVE BANK and at

times from its own funds and advances monies to the GPCM Societies approving their Credit

Plans and Dalwal Applications in advance to disburse short term credit to the eligible tribal

farmers in Khariff / Rabi seasons. The scale of finance for each crop is fixed at the GPCMS level

taking into account the existing agricultural practices, crops raised, yields expected and the

repaying capacity of the tribal farmers so as to avoid overburdening them with the loan. The rate

of interest is as approved by the Government from time to time. The loanees are provided the

facility to repay the loans in cash in easy installments and also in kind i.e. by way of selling


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MFP/ SAP to GPCMS at their convenience. The Societies repay the loans to GCC after

collecting the same from their members.

The Staffing pattern of GCC is approved by the Government. GCC receives subsidy from the

Government for payment of Salaries to its staff to the extent of staffing pattern approved by the

Government. The expenditure on the staff costs over and above the sanctioned strength is met by

GCC. The staff working in the GPCM Societies is on deputation from GCC for which GCC

provides them 60% of their salaries while the GPCMS have to meet the balance 40% from their

own resources.

1. Managing Director:

The Managing Director is the Chief Executive of the Organization. He also acts as Vice-

Chairman on the Board of Directors. As per the powers delegated by the Board of Directors of

GCC under Bye-law No.32 (vi) he shall be the final decision making authority in all business,

financial, service matters of the Corporation. He shall be the competent authority to deal with all

legal matters for and on behalf of the Corporation. He can re-delegate his powers where ever

required to the sub-ordinate officers. He shall appraise the progress of all activities to the Board

of Directors from time to time

2. General Manager (Administration):

He is the second-in-command. The officers in-charge of Engineering and Transport

wings shall work under his direct control. He shall exercise general control and supervision over

the working of all societies and Divisional Offices in Andhra Region. He shall institute and

defend all legal proceedings and arbitration claims and execution petitions against the present

employees and ex- employees of the Corporation Head Office with the permission of the VC &

Managing Director. As per the powers delegated to him under the GCC Employees Service

Rules, he shall be the Appellate authority over the final orders passed by the Divisional

Managers of Andhra Region in disciplinary cases. He is answerable to the Managing Director in

all matters of administration.

3. General Manager (Finance):

He shall be in charge of the Accounts Department in the Head Office and shall look after

all matters relating to accounts of the Corporation and GPCM Societies. He is responsible for

regulated flow of funds, receipts and expenditure, regularization of natural dirges in stocks and


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recovery of inadmissible deficits in MFP/SAP handled by the Units. He is also responsible to

prepare annual budget of the Corporation and exercise strict budgetary control by enforcing

financial discipline at all levels. He shall prepare all financial statements, Profit & Loss accounts,

balance sheets of the GPCMS and also GCC and shall furnish such statements to the Statutory

Audit from time to time and ensure that the Audit is completed within the stipulated time. He

shall also arrange to get the assessment of Sales Tax / Income Tax of the Corporation completed

within the stipulated time. He shall be working under the direct control of the Managing

Director.

4. General Manager (Marketing):

He shall be in charge of the Marketing Department in the Corporation Head Office. He

shall tour at least 15 days in a month to plan and oversee the procurement, sale and inventory

control of Minor Forest Produce (MFP) / Surplus Agricultural Produce (SAP) in the divisions.

He shall inspect the purchase counters in the weekly shandies, seasonal purchase centers and

godowns. He shall be keeping regular watch on the market trends and arrange timely fixation of

purchase prices for all centralized commodities and communicate them to the Divisional

managers and Managers for taking up procurement. It is his primary responsibility to see that the

MFP & SAP stocks are disposed of quickly to the best advantage of the Corporation by

following the stipulated procedures and after obtaining orders from the Managing Director. He

shall prepare trading results for all commodities. He shall ensure that all Government Rules and

Regulations on forest lease units and on procurement, sales and transport of the produce etc. are

followed by the field staff. He shall assess the demand for various products of the Corporation in

the consumer/ retail market, plan for processing of the produce and arrange for its retail

marketing through Retail Marketing network besides through the DR Depots and supplies to

Tribal Welfare Hostels. He shall be reporting on daily basis to the Managing Director.

5. General Manager (Domestic Requirements):

He shall be in charge of the D.Rs department in the Head Office. He is responsible for

proper functioning of all the D. R. Depots and D.Rs main godowns of the GPCMS. He shall

prepare Annual Action plan for the DRs Business which includes the lifting and sale of Essential

Commodities under Public Distribution system, purchase and sale of other daily requirements

through the net work of D. R. Depots. He shall closely monitor distribution of rice under Food

for Work Program, Midday meal program, Grain Banks and other schemes of the Government


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and realization of the margins / commission from the A. P. State Civil Supplies Corporation. He

shall be responsible for closely monitoring credit supplies of food provisions and cosmetics to

the TW Hostels and schools and realization of money from the Sundry Debtors. He shall also

supervise the maintenance of Mandal level Stock points for Essential Commodities and Stage -II

transportation of stocks to the D. R. Depots and for timely realization of claims from the A. P.

State Civil Supplies Corporation. It is also his responsibility to closely monitor the functioning of

LPG godowns and D. R. Depots run by the Women Self Help Groups. He shall be answerable to

the Managing Director.

6. Dy. General Manager (Credit):

He shall be working under the direct control of General Manager (Finance)He is

responsible for preparation and submission of Credit limit applications to APCOB/NABARD

and pursue for its sanction. He shall regulate the provision of Agro-Credit facilities to the tribal

members of the affiliated primaries and ensure prompt disbursal and recovery of loans and

coverage of legal action in respect of all overdue loans.

7. Dy. General Manager (Retail Marketing & Exports):

He shall be responsible for proper functioning of all the Industrial Units of the

Corporation and ensure proper processing and packing of products in the Units. He shall make

proper advance planning for procuring various raw materials required by the Units and

identifying the dependable sources of supply. He shall be responsible for compilation of trading

results of each of the industry periodically and appraisal to Managing Director. He shall ensure

that all the Industries are operated to the optimum utilization level with utmost economy. He

shall also monitor the flow of finished products to the Retail outlets and authorized Distributors

of the Corporation. He shall also assist the General Manager (Marketing) in exploring the export

avenues for the products of GCC. He shall be reporting directly to VC&MD.

8. Dy. General Manager (Regional Office, Hyderabad):

He shall exercise control and supervision over the working of the Staff in Regional

Office. The Central godowns and RMD godowns at Hyderabad function under his control. The

branch at Kamareddy of Nizamabad district also functions under his direct control. He shall be

coordinating the conduct of monthly tender-cum-auctions of Gum and other MFP/AP items at

Hyderabad. He shall also arrange for prompt delivery of Gum and other stocks from the Central

Godowns, Hyderabad to the parties as per the sale confirmation orders issued by the VC&MD.


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He shall cause inspection of the godowns and physical verification of stocks at least once in a

quarter including statutory verification. He shall act as Liaison Officer between the Corporation

and the various departments of the State Secretariat, Commissionarates such as Tribal Welfare,

Civil Supplies, other Government offices and other institutions in the matters concerning the

Corporation. He shall also keep close liaison with Legal Adviser of the Corporation at

Hyderabad and vigorously pursue the court cases and allied legal matters. He shall be reporting

directly to the Managing Director.

9. Vigilance Officer (Andhra):

He is essentially a touring officer and will tour at least 20 days in a month in connection

with enquiries and surprise checks to various units, shandies, D.R.Depots and godowns of the

Corporation in Andhra Region. He shall make discrete enquires with the local tribals regarding

various field operations of GPCMS / GCC. and suggest remedial measures to curb malpractices,

deficits in stocks and misappropriations etc. During his visits he shall physically verify stocks

in godowns, DR Depots and purchase centers in case of doubts. He is directly answerable to the

VC&MD.

10. Vigilance Officer (Telangana):

He is essentially a touring officer and will tour at least 20 days in a month in

connection with enquiries and surprise checks to various units, shandies, D.R.Depots and

godowns of the Corporation in Telangana Region. He shall make discrete enquires with the

local tribals regarding various field operations of GPCMS / GCC. and suggest remedial measures

to curb malpractices, deficits in stocks and misappropriations etc. During his visits he shall

physically verify stocks in godowns, DR Depots and purchase centers in case of doubts. He is

directly answerable to the VC&MD.

11.Transport Officer:

He shall be working under the direct control of the General Manager (Admn.) and

shall be responsible for proper upkeep of all vehicles of the Corporation. He shall visit all units

and periodically check up the condition of the fleet. He shall scrutinize the estimates for repairs

to vehicles and arrange to obtain sanction orders from the competent authority. It is his

responsibility to see that all repairs and renewals to vehicles are executed properly as per the


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sanctioned estimates. He shall watch prompt payment of taxes of the vehicles and coverage of

their insurance.

12. Dy. Executive Engineer:

He shall be in charge of all original works and maintenance works of the Corporation.

He shall periodically inspect office buildings, godowns, DR Depots, etc., and ensure their proper

maintenance. He shall follow the procedures laid down by the Roads and Buildings Department

for execution of different works. In regard to the works entrusted by the Corporation to Roads

& Buildings Department / Panchayat Raj/ TW Engineering Departments, etc., he shall keep close

liaison with the concerned departments and render them assistance as required from time to

time for completion of the works within the stipulated time. He shall be working under the

control of the General Manager (Admn)

13. Divisional Manager:

He is primarily responsible for proper functioning of the GPCM societies in his division.

He shall be responsible for purchase and sale of Minor Forest Produce and Agricultural Produce

from the tribals. He is competent to fix purchase prices for decentralized items and also pursue

for their timely disposal. Subject to the limits prescribed, he is competent to enhance or reduce

the purchase price of Minor Forest Produce and Agricultural Produce. He shall visit not less than

8 shandies in a month and also physically verify stocks at least one Godown every month. He

shall arrange to purchase required items of DRs in bulk at competitive rates after observing all

formalities and arrange for their distribution to the DR Depots through the GPCM Societies.

He shall inspect at least 5 Dr Depots in a month and also cause inspection of all the DR Depots

every month by the Manager and Staff of the GPCMS. He shall also be responsible for the

conduct of quarterly / half-yearly physical verification of stocks in all the godowns of his

division. He is responsible for proper maintenance and up keep of Vehicles plying in his

Division. He shall take every possible step to arrest smuggling of Minor Forest Produce from the

lease holds of the Corporation in his division. As Chairman of the Primary Societies it is his duty

to conduct Board and General Body meetings as prescribed in the bye laws. He shall maintain

close liaison with the Project Officer, Sub-Collector, Officers of the District Administration and

Local officers for their active cooperation in carrying out the day to day business of the

Corporation. He shall be competent to deal with service matters and decide disciplinary cases of

employees as per the powers delegated to him under the service rules.


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14. Senior Manager / Junior Manager in Divisional Manager's Office:

He is the ministerial head of the Divisional managers office and he shall exercise proper

control and supervision over all the staff members of the office .He is directly answerable to the

Divisional Manager in all matters.

15. Manager of the GPCM Society:

He is the executive head of the society and shall be responsible for its general

management. He shall have overall control over the staff of the society. He shall, with the prior

approval of the Chairman of the society call for the meeting of the Board of Directors and

General Body of the society as per the Bye-laws. In order to bring the entire tribal population

into cooperative fold, he shall ensure total enrollment of all the tribals who attain the age of

majority as members of the society. He shall be responsible for timely filing of arbitration

references and execution petitions for and on behalf of the Society as per the instructions issued

from time to time. He is primarily responsible to organize purchases of Minor Forest Produce

and Agricultural Produce in his society. He shall visit all major shandies in the area and organize

the purchases. He shall ensure proper weighment of stocks in the purchase centers and D. R.

Depots and payment of correct purchase prices to the tribals. He shall see that all DR Depots in

his Society area function properly and cater to the need of the tribal consumers effectively. He

shall inspect and physically verify at least 5 DR depots in a month and cause inspection of all the

DR depots in his Society every month. He shall see that all possible steps are taken to arrest

smuggling of minor forest produce. All the vehicles allotted to the society shall be under his

control. He is responsible for their maintenance and optimal utilization. He shall ensure proper

disbursal and recovery of loans and initiation of legal action against defaulters.. He shall see

that all loans collections are promptly remitted to the corporation Head Office and ensure proper

and up to date maintenance of records and registers as prescribed. He shall maintain close liaison

with local officers such as Project Officer, Sub Collector, Revenue officers and officers at the

district level and seek their active cooperation in sorting out matters relating to the society. He

shall be working under the overall control of the Divisional Manager.

16. Manager, Honey Processing Unit / Sheekakai & Soapnut Powder Making (SSP) Unit,

Rajahmundry:


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He shall be in charge of the Honey Processing and SSP unit at Rajahmundry. He shall

exercise supervision and control over the staff working in these units. He shall ensure proper

upkeep of quality of the raw produce and finished products.. He shall plan for all operations

relating to processing, agmarking, grading and bottling of honey and packing of sheekakai and

soapnut powders. He is responsible to supply stocks as per the indents received from the Units

and as per the sale orders issued by the Corporation Head Office. He shall arrange to maintain

processing register for Honey and sheekakai and soapnuts and such other accounts and registers

prescribed from time to time. He shall incur expenditure strictly in accordance with the sanctions

and instructions of the Corporation Head Office. He will operate on the bank accounts jointly

with the Accountant. He shall also look after the bee-keeping expansion programme taken up by

the Corporation and arrange for procurement of bee boxes and other material as per the

programme approved by competent authority in this behalf. He shall at the end of every half-year

submit the trading results on the operations of the Units. He shall be responsible for furnishing of

necessary statements, vouchers and other required information to the Auditors and for timely

completion of Audit. He shall be reporting directly to the General Manager (Mktg).

17. Sr. Manager (Systems):

He shall be reporting to the Managing Director directly. He shall be in charge of all

systems in CHO and field units and ensure their optimum performance. He shall be responsible

for compilation of data through proper programming, its preservation and retrieval at short

notice. He shall compile spread sheets, flow charts and develop data bank of all important

activities of the Corporation for furnishing to Government, financial institutions and other

agencies. He shall tour the divisions and regional office and oversee the computerization

program and ensure flow of information through electronic means to CHO. He shall plan for self

assessment and appraisal of each activity of the GCC through computerization.

18. Accountant of Divisional Manager's Office:

He shall work under the control of the Divisional Manager. He shall be in charge of

all accounting matters in the Divisional Office and personally responsible for writing cash book,

General ledger, subsidiary ledgers like due to, due-by, Sundry Debtors registers etc., and ensure

their up to date maintenance. He shall operate bank accounts of the Divisional office under joint

signatures of the Divisional Manager. He shall hold the double lock of the cash chest along with

Cashier. He shall scrutinize all expenditure vouchers and recommend to the Divisional Manager


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either for its acceptance or rejection with valid reasons with reference to the guidelines issued by

the CHO such as budget/administrative sanctions etc. He shall scrutinize the T. A bills of the

staff members of the Divisional Office and the Primary Societies and submit them to the

Divisional Manager for pass orders. He shall check the stock registers of all MFP godowns

which are under the control of the Divisional Manager. He is responsible for furnishing all the

financial statements to the Statutory Audit, Sales Tax, Income Tax Departments and ensures

timely completion of audit and tax assessment of the Divisional Office. He shall also attend to

the rectification of Audit defects and maintain prescribed register there for. He shall discharge

such other duties and responsibilities entrusted to him by the Divisional Manager from time to

time.

19. Accountant of GPCMS:

He shall be working under the control of the Manager. He shall be entirely responsible

for maintenance of all accounts of the Society. He shall personally maintain the cash book up to

date and also maintain General Ledger, Subsidiary Ledgers like Due-To, Due-By, Sundry

Debtors, Sundry Creditors and Liability Registers of Salesmen and CCPAs, Purchases and Sales

Registers of MFP, AP and DRs and all other Registers as prescribed. He shall exercise strict

financial control over all the transactions of the society. He shall be responsible for receipt of

funds, its proper utilization and economy in expenditure and strict budgetary control. He shall

submit proposals for writing off the admissible dirges in the prescribed proforma within one

month from the date of noticing such deficits. He shall be responsible for furnishing Statements

of accounts and books and registers to the Auditors and for timely completion of Audit. He shall

also attend to the rectification of Audit defects and maintain prescribed register in this regard. He

shall reconcile the liability accounts of all the DR Depots and CCPAs every month and closely

watch over the excess stock holdings. He shall ensure up to date maintenance of godowns-wise

stock register with age-wise classifications of stocks by the godown clerk, regularly check the

registers and attest each and every entry made therein. He shall file arbitrations to recover

inadmissible stock deficits and misappropriated amounts to recover the amounts as per the

provisions of law.

20. Stores / Godown Assistants:

He shall be responsible for proper maintenance and up-keep of godowns in his charge

and maintain Godown-wise stock registers, invoice books, weighment registers and all other


21/93

registers as prescribed from time to time. As custodian of stocks he shall be responsible and

accountable for the stocks received by him in the godowns till such stocks are disposed off or

transferred to other pooling centres. Whenever infestation is noticed in stocks, he shall arrange

for fumigation and also ensure using of proper dunnage in godowns. The stocks received by him

shall be standardised and stacked properly in the godown. He should ensure proper up keep of

empties in the godowns and upto date maintenance of accounts relating the empties.

21. Office Assistant (Senior / Junior Assistant):

He shall work under the control of the Superintendent concerned and attend to the

correspondence work, maintenance of personal registers, periodical registers, files and registers

as prescribed from time to time.

22. Typist:

He shall work under the control of the Superintendent concerned and attend to the fair

copying and dispatch work and maintenance of prescribed registers there for.

23. Data-Processor-cum-Programmer:


Computerization and programming as entrusted to him from time to time.

24. Data Entry Operator:


Computerization of data as entrusted to him from time to time.

25. Credit-cum-Procurement Assistant:

He shall work under Control and supervision of the Manager. He is primarily responsible

for procurement of MFP & AP in weekly shandies, seasonal purchase centres and also at the

door steps of the tribals in his jurisdiction and achieve the targets fixed. He shall be responsible

for quality in stocks while procuring and shall pay correct prices to the tribals for their produce

besides ensuring proper weighment of stocks. The stocks procured by him shall be handed over

to the designated godowns once in a week under proper Invoice and acknowledgement obtained.

He shall remit back the unutilized purchase advances, if any, after the closure of purchases on the

same day or the next day to the office. He shall also be responsible for timely preparation of

Realistic credit plans, credit limit applications and drawal applications and ensure timely

disbursal of loans to all the eligible tribal farmers. He shall also prepare Demand, Collection and

Balance statements accurately for all varieties of loans such as SAO, MT, LT, MTC,


22/93

consumption loans, Self Help Groups loans etc., and furnish to Manager or any other inspecting

officer as and when demanded. He shall be responsible for the collection of loans and prompt

remittances of such collections to the GPCMS. He shall also ensure proper functioning of the D.

R. Depots in his area of operation and monitor the performance of the Salesmen closely. He shall

inspect all DR Depots in his jurisdiction at least once in a month and submit the inspection

reports to the Manager. He shall keep close watch on illicit storage and movement of MFP from

the lease holds of the Corporation and arrest smuggling. He shall not purchase MFP and AP from

middlemen including tribal middle men and shall purchase directly from the MFP gatherers only.

He shall maintain all prescribed registers up to date.

26. Salesman:

He shall be working under the overall control and supervision of the Manager. He is

primarily responsible for proper maintenance and upkeep of the DR Depot. He shall ensure

proper display of all items in the DR depot so as to easily catch the eye of the tribal consumer. It

is a statutory obligation to keep price board at conspicuous place in the premises of the depot

clearly indicating the stock balances of various commodities as on date and the sale rates of each

commodity. He shall also display a price board at the depot indicating the purchase prices of

various commodities of MFP & AP that are being purchased at the depot. The required licenses

for controlled commodities etc., shall be displayed conspicuously in the depot. He shall also

ensure that all daily requirements of the tribal consumers in adequate quantities are made

available in the depot. He shall see that the stocks are liquidated quickly to avoid accumulation

in the depot exposing to the risk of spoilage. If there are any price fluctuations, he shall promptly

report to the Manager for either increasing or reducing the prices in tune with the local market

trend. He shall be responsible for all stocks as per the stock register and liability register. He

shall get his liability account reconciled with the one maintained at the Society Office every

month.. He shall receive stocks from the society under proper wighment as per the indent placed

by him. He shall promptly remit all sale proceeds either in the bank or to the GPCMS office as

prescribed by the Manager whenever the sale proceeds exceed Rs.5000/-. He shall purchase

MFP/ AP brought by the tribals to the depot at the rates prescribed by the Manager. The

purchase advance taken shall be accounted for in a separate cash book. The stocks so procured

shall be sent to the main godowns as quickly as possible. He shall maintain all registers as


23/93

prescribed. He shall keep an upto date village wise/ loanee wise DCB list of all types of loans

and collect loans from the tribal loanees either in cash or kind issuing them proper receipt.

Normally the files are processed by the Office Assistants and route them through

the concerned Superintendents to the Departmental Officers viz., General Managers. The

decisions are taken by the General Managers with in the limit of the powers delegated to them. In

the matters beyond the competency of the General Managers, the files are circulated to the

Managing Director for taking decisions.

Regarding the fixation of purchase prices, finalization of tenders and disposal of

stocks, the files processed by the Section Assistants are routed to the General Manager

(Marketing) through the Section Superintendents and the General Manager in turn circulates the

files to the Managing Director. In all such matters, the Managing Director is the decision making

authority.

In respect of the files dealing with engineering works, the files processed by the

Section Assistants are routed to the General Manager (Administration) through the Deputy

Executive Engineer and the General Manager will be submitting the file to the Managing

Director for decision making.

The Transport Officer will be submitting the files to the Managing Director

through the General Manager (Administration) for taking decisions.

The files originating in the Finance Department from the Section Assistants on the

fixed items of expenditure and also on the routine items with in the limit of budget provisions

will be submitted to the Deputy General Manager (Finance) who will forward them to the

General Manager (Finance) for approval. The General Manager (Finance) will pass the

expenditure vouchers within his competency and in case the expenditure is beyond his

competency, he circulates the files to the Managing Director for taking decisions.

In the case of Domestic Requirements (DRs) business activity, the files are

processed by the Section Assistants and routed to General Manager (DRs) through the concerned

Superintendent and the Deputy General Manager who will circulate the files to the Managing

Director for taking decisions. Channel of Supervision

The Section Superintendent will be scrutinizing the files processed by the Section

Assistants and circulating the files to the Dy. General Manager. After supervision by the Dy.


24/93

General Manager, the fill will be routed to the higher authority i.e. General Manager / Managing

Director. Accountability

The Section Assistant i.e. Junior / Senior Assistant is accountable for the

incoming tappals and he shall submit the files to the concerned Superintendents. He is also

accountable for the dispatch of outgoing references after fair copying and for filing of office

copies in the connected files after dispatch. The Section Assistant shall also be accountable for

proper maintenance of the Personal Registers duly recording necessary entries for the incoming

tappals and the outgoing references.


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The Institutional Arrangement in the Service Of Tribals

At present 1084 regular and 378 contract employees (OSD-1, Drivers -44; DEOs-

40 Salesmen -294) are engaged in the service of tribals through a net work of 1 Regional Office,

10 Divisional Offices, 43 Girijan Primary Cooperative Marketing Societies (GPCMS) and 839

DR Depots in the state.

Divisional Offices & Girijan Primary Co-op Marketing Societies (GPCMS)

For effective administration, GCC has established 10 Divisional Offices &

43 Girijan Primary Coop Marketing Societies (GPCMs) across its area of operations. Each

Divisional Office controls 4 to 5 GPCM Societies.

Establishment of Domestic Requirement Depots (DR Depots) in tribal areas

GCC has established 839 Domestic Requirement Depots (D.R.Depots) in

the tribal habitats to cater to the needs of the tribal consumers by supplying essential

commodities under Public Distribution System (PDS) and other daily requirement commodities.

These DR Depots are manned by the salesmen who attend to diversified activities making DR

Depot as center of all business activities such as procurement of NTFP / A.P throughout the year

and disbursement / recovery of loans for agricultural operations besides attending to the regular

function such as sale of ECs and other DRs.

The Credit-cum-Purchase Assistant (CCPA)

The most important duty of CCPA is to collect NTFP /A.P through out the

year from the very door-steps of the tribals besides making purchases every day at the seasonal

purchase centers and weekly haats (Shandies) . Besides these functions, the CCPA disburses

loans also to the tribal farmers for their agricultural operations and recovers the same both in

cash and kind through procurement of NTFP / A.P.


27/93

V. PERFORMANCE INDICATORS

a) Procurement of Non Timber Forest Produce & Agricultural Produce

b) Sale of Essential Commodities and other DRs

c) Credit Disbursement & Recovery

d) Sale of value added products

VI. PERFORMANCE DURING THE LAST FIVE YEARS

S.

No.ACTIVITY 2006-07 2007-08 2008-09 2008-09 2009-10

1 Purchase of NTFP 2824.05 2486.13 1684.72 1446.22 1149.45

2 Sale of ECs 7065.46 7493.05 7883.35 5934.48 5676.52

3 Sale of other DRs 8038.12 9296.16 9128.91 10499.3611714.4

9

4Credit -

Disbursement335.74 343.42 374.34 178.36 159.45

5 Credit - Recovery 315.17 392.47 379.88 1697.12 125.68

6Sale of Value AddedProducts

840.99 1075.00 961.50 1260.311240.34

TOTAL 19419.53 21086.23 20412.70 21015.8520065.9

3


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ACTION PLAN FOR THE YEAR 201011 (Achievement up to February, 2011)

(Rs. in Lakhs)

Sl.

No.ACTIVITY

ANNUAL

TARGET

ACHIEVEMEN

T (Upto Jan.11)

1 Purchase of NTFP 1867.60 970.89

2 Sale of ECs & other DRs 22500.00 16526.73

3 Credit - Disbursement 600.00 243.67

4 Credit - Recovery 772.00 151.20

5 Sale of Value Added Products 2500.00 1429.68

TOTAL 28239.60 19322.17

MAJOR NTFP PROCURED DURING THE LAST FIVE YEARS :

(Qty. in Qtls. & Value Rs. in Lakhs)

Sl.

No.

Name of the

Commodity

2005-06 2006-07 2007-08 2008-09 2009-10

Qty. Val. Qty Value Qty Value Qty Value

1 2 5 6 7 8 9 10 11 12

1 Gum Karaya 6179 534.25 6050.40 510.77 3715.97 313.55 2392.31 226.74 1965.32 213.23

2 Gum Thiruman 22 1.43 4.33 0.23 14.04 0.75 5.47 0.29 2.79 0.14

3 Gum Olibanum 130 3.08 246.03 9.33 174.64 6.82 79.02 3.12 41.84 1.65

4 Gum Kondagogu 622 49.29 420.26 40.60 222.96 21.46 143.02 14.39 93.44 9.40

5 Gum Dikamali 130.00 0.00 17.25 0.21 29.02 0.35 0.00 0.00 00.0

6 Myrobalans 5948 12.06 7862.31 21.98 4750.87 18.92 4361.64 23.81 8440.65 48.21

7 Nuxvomica 1416 23.78 8387.02 133.36 1103.31 17.01 4513.00 71.91 1666.11 27.46

8 Seeded Tamarind 56769 469.71 50113.40 440.63 37816.86 289.45 47783.29 382.22 22796.87 268.43

9 Deseeded Tamarind 13376 177.55 3999.5 74.17 4897.05 76.20 3277.31 58.27 864.00 13.73

10 Tamarind Seed 15463 62.04 3270.23 12.62 4106.01 15.20 314.20 0.65 868.00 1.81


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Procurement Particulars of Agricultural Produce for the last Five Year

(Qty. in Qtls. & Value Rs. in Lakh

11 Pungam Seed 2989 20.80 745.18 5.99 2847.9 28.48 2190.22 22.98 982.40 10.79

12 Cleaningnuts 1872 23.77 1320.74 12.47 232.17 2.09 189.22 1.70 235.98 2.15

13 Markingnuts 5492 26.66 8352.23 41.70 7714.17 38.57 10072.76 50.37 22.53 7.99

14 Mohwa Seed 6189 65.24 9441.87 104.49 3063.44 33.70 2437.75 28.85 3598.18 42.64

15 Mohwa Flower 13706 84.08 15519.83 93.74 6183.32 43.28 5621.99 36.74 1835.95 11.02

16 Honey 2335 186.47 3523.28 281.53 3088 246.96 2731.89 217.11 1477.26 122.77

17 Sheekakai 17.58 2957.72 29.62 1661.8 14.85 2124.61 17.00 1474.10 9.78

18 Soapnuts 674.92 3.35 2550.45 23.80 3769.32 40.27 468.53 4.48 991.17 14.28

19 Hill Brooms (Nos) 3411.56 42.28 390623 56.09 319092 46.06 56183.00 7.33 76669.00 18.60

20 Hill Brooms (Qtls.) 12.50 0.15 3.60 0.07 20.11 0.36 0.50 0.01

21Wild Brooms(Qtls.)

972.98 14.37 692.55 10.14 1137.74 17.38 457.32 7.89 476.24 9.41

22Wild Brooms

(Nos.)99.10 0.30 50 0.00 0.00 0.00

23 Adda leaf 8865.83 37.95 9140.67 46.70 6820.95 32.82 2819.93 13.30 1511.31 8.59

24 Naramamidi Bark 1929.02 34.80 1850.89 37.69 875.16 17.51 1655.24 34.74 930.00 23.25

25 Teripods 0 0 0.00 10.76 0.04

26 Maredugeddalu 1258.83 31.44 762.76 25.57 1058.93 47.99 635.48 31.95 271.12 15.48

27 Others 75.25 63.16 25.99 34.85 8.47

28Agricultural

Produce826.37 409.47 288.04 143.96 249.11

29 Medicinal Herbs 0.66 11.52 11.06

TOTAL 2824.05 2486.13 1684.72 1446.22 1149.45

Sl.No.

Name of theCommodity

2005-06 2006-07 2007-08 2008-09 2009-10

Qty Value Qty Value Qty Value Qty Value Qty Value

1French

Beans(Red)7252.64 131.63 3517.24 90.49 3663.51 97.63 685.75 20.6 639.04 25.39

2FrechBeans(white)

2248.55 54.55 2586.16 98.89 711.38 20.79 125.19 4.33 127.62 4.95


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The Strategy for Marketing NTFP:

Efforts are made to market NTFP by establishing advanced tie-ups with Government

Institutions and other end users/user industries through auction cum tenders. GCC also processes

certain NTFP into Ready to Use Products (Value added products) and sells to consumers

through retail network.

Sl.

No. Name of the Commodity Avenues of Marketing

1

GUMS & RESINS LIKE

GUMKARAYA, GUM

OLIBANUM etc.

Bulk Sale to Exporters

2 HONEY Processing, packing and marketing in retail.

3 TAMARIND

Processing, packing and marketing in retail through

FP Shops and distribution net work. Also, bulk sales

through tender cum auction.

4 HILL BROOMSProcessing, packing and market in retail throughdistribution net work. Also, bulk sales through tender

cum auctions.

3 Niger seed 395.59 5.54 20.46 0.33 304.59 8.62 8.49 0.30 17.18 0.58

4 Annatoo seed 190.78 2.19 94.21 1.19 168.19 4.82 38.06 1.01 40.17 1.41

5 Jowar 21335.43 159.28 3042.04 27.60 69.00 0.55

6 Ground nut 211.30 3.58 0.00 0.00

7 Redgram 2245.91 34.06 386.80 7.50 170.70 3.83 91.00 1.82

8 Turmeric 773.12 26.84 1536.93 48.60 1292.27 36.83 859.49 30.28 1083.59 83.40

9 Dry Chillies 979.12 29.86 800.97 34.03 1009.45 38.72 712.91 33.57 1383.30 65.88

10 Paddy 13864.00 82.39 3540.38 21.66 810.39 5.21 518.00 4.81 2058.00 20.95

12 Maize 28834.97 160.38 3924.34 22.48 330.24 1.99 0.00 0.00 3758.00 38.6313 Cotton 637.80 12.52 199.40 3.85 0.00 0.00 0.00 0.00

14 Coffee Seed 18.55 1.37 0.35 0.02 370.75 35.18 298.07 25.82 4.04 0.38

15 White beans 60.17 0.50 270.71 8.94 300.67 3.75 69.80 1.97 170.07 3.87

16 others (AP) 9971.99 121.68 3414.50 40.18 30.12 19.45

17 Cuttings 0.16

18 Medicinal Herbs 4.87

TOTAL 826.37 409.47 288.04 143.96 253.95


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5 SHEEKAKAI, SOAPNUTS ETC.Bulk Sales and Processing, packing and marketing in

retail

6 MOHWA FLOWERBulk Sales

7

TREE BORNE OIL SEEDS LIKE

PONGAMIA SEED, MOHWASEED

Bulk Sales

8 NUXVOMICA Bulk Sales

9 MAREDUGEDDALU Bulk Sales

10 AMLA Bulk Sales

11 NARAMAMIDI BARK Bulk Sales

12 CLEANING NUTSIn value added form to User Industry and as well the

bulk sales

13MYROBALANS & MARKINGNUTS

Bulk sales

14 Medicinal Plants / Herbs Bulk sales

VALUE ADDITION AND RETAIL MARKETING OF NTFP

PROCESSING UNITS :

GCC has so far established the following processing units to convert NTFP into

READY TO USE PRODUCTS.

Honey Processing Units Rajahmundry and Chittoor

Sheekakai, Soapnut and Amla Pulverizing Units Rampachodavaram and RajahmundrySoap making Units Vizianagaram and Araku

Rajmah, White Beans and Cuttings Processing cum

Packing UnitsPaderu

Tamarind Processing & Packing UnitsV. Madugula, Chodavaram,Makavaram, Salur, S.Kota

Turmeric polishing & powdering Unit, V.Madugula

Soya beans powdering & milk making Units Utnoor

Dry Chillies packing & powdering Unit(outsourcing) Bhadrachalam

Coffee powdering and packing unit (outsourcing) Araku valley/Paderu

Hill broom processing units Salur, Seethampeta

THE PRODUCT RANGE :


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To capture full market potential for NTFP based value-added products, GCC has

introduced a range of products under common brand name GIRIJAN in different pack sizes toconsumers as detailed below.

01 Girijan Honey (Agmarkgrade) 5kg / 1kg / 500 gms / 200gms / 50 gms / 20 gms02 "Ritu" Aloe Vera Soaps 150 gms / 100 gms / 75 gms / 50 gms / 20 gms

03 Ritu Turmeric Soaps 100 gms / 75 gms / 50 gms

04 Ritu Neem Soaps 100 gms / 75 gms / 50 gms

05 Ritu Honey bathing bar 75 grams

06Girijan FlowerTamarind(Agmark grade)

30 kg / 1 kg / 500 gms

07 Girijan Pulp Tamarind 1 kg

08 Girijan Deseeded Tamarind 1kg

09 Girijan Seeded Tamarind 1 kg

10 Girijan Sheekakai powder 100 /200 gms

11 Girijan Soapnuts 1 kg12 Girijan Soapnut Powder 200 gms

13 Girijan Amla Powder 200 gms

14 Girijan Hill Brooms (Gr.I,&II) 1 No

15 Girijan Rajmah (Red) 500 gms

16 Girijan Rajmah (White) 500 gms

17 Girijan Cuttings 500 gms

18 Girijan White Beans 500 gms

19 Girijan Dry Chillies 500 gms

20 "Girijan" Turmeric Powder 100 /500 gms/ 1kg

21 "Girijan" Dry Chillies Powder 200 / 500 gms & 1 Kg

22 Girijan Soya Beans 200 gms

Distribution Network for Supply of 'Girijan' products to consumers:

As many as 200 distributors are functioning in all the major cities and towns in Andhra

Pradesh who are catering to the needs of the consumers through 5 C & F Agents.

IMPROVEMENT IN SALE

There has been substantial increase in the sale of value added products year after year as

shown hereunder.

Sl.No. YearSale turnover

(Rs in Lakhs)

1 2001-02 316.31

2 2002-03 444.33


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3 2003-04 581.73

4 2004-05 774.62

5 2005-06 842.03

6 2006-07 1075.00

7 2007-08 906.24

8. 2008-09 1226.359 2009-10 1240.34

The following is the commodity-wise sale turned out during the year 2009-10 against

the year 2008-09.

S.No. Commodity

Sales during 2009-10 Sales during 2008-09

(Qtls)(Rs.in

lakhs)(Qtls) (Rs.in lakhs)

1 2 3 4 5 61. Honey bottles (Qtls) 1875.07 330.15 3576.00 619.84

2.Tamarind (all

vanities )7568.27 174.27 11949.00 206.74

3.Sheekakai & its

powder11.28 200.11 10.97

4.Soap nut ( its

powder) )15.78 768.00 16.04

5. Amla Powder 7.63 63.00 4.60

6. Hill Brooms 13.50 41153 5.78

7. Toilet Soaps(Nos) 493.43 262.06

8.Dry Chillies &

Powder103.29 766.91 54.05

9. Turmeric Powder 73.56 401.00 25.29

10. Coffee Powder 2.27 0.43 0.06

11. Rajmah & Beans 5.83 235 8.69

12.Soyabeans & its

powder5.09 179.25 3.31

13. Others 0.26 8.92

Total 1240.34 1226.35

DIRECT SALES TO INSTITUTIONS:

Supply of products is taken up directly to the following Institutions.

.No. Name of the Institution Products supplied

1. CSD canteens across the country Honey bottles- 500 grams


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Aloe vera soaps- 150 grams

Turmeric soaps- 100 grams

Turmeric powder- 100 grams

2. TRIFED, New Delhi ( for their

TRIBES INDIA Shops across the

country)

All products

3. A.P. Tourism Corporation ( HarithaTourist resorts)

Aloe vera soaps- 20 grams

4. Central Prison, Visakhapatnam Deseeded Tamarind

5. S.T, Welfare/ B.C. Welfare / SocialWelfare/ Women welfare Hostels

Deseeded Tamarind / SoyaPowder & milk / Aloe vera,Turmeric & Neem Soaps

6. Visakhapatnam Port Trust Turmeric Soaps 100 grams

Coverage of more Government Institutions

Regular supplies are being made to the following temples.

1. Tirumala Tirupathi Devastanams,

Tirupathi

Flower Tamarind, Sheekakai

powder, Hill brooms, Honey

bottles

2. Sri Varaha Lakshmi Narasimha swamy

Devastanam, SimhachalamDeseeded Tamarind

3. Kanaka Maha Lakshmi Devastanam,

Visakhapatnam

Deseeded Tamarind

4. Nekkanti Anjaneya swamy Temple,

Kasapuram (Anantapur district)Flower Tamarind

5. Sri Raghavendraswamy Devastanam,

Mantralayam (Kurnool district)

Honey, Turmeric & Aloe vera

soaps

6. Sri Maha Nandeeswara Swamy

Devastanam, Mahanandi (Kurnooldistrict)

Honey, Aloe vera and Turmeric

soaps


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7. Sri Lakshmi Narasimha swamy

Devastanam, Ahobilam (Kurnool

district)

Flower Tamarind

8. Sri Mallikarjuaswamy Devastanam,

Srisailam (Kurnool district)Flower Tamarind & Honey

9. Sri Satyanarayana swamy Devastanam,Annavaram (East Godavari district)

Pulp Tamarind, Honey andTurmeric powder

GCCS INITIATIVES TO ADD VALUE TO NTFP

Training Programs:

GCC has imparted training to tribals on scientific collection of NTFP by engaging

training institutes and NGOs and invested about Rs. 40.00 lakhs on such training progrms in a

span of 5 years. This has enabled GCC to make NTFP a more viable and Income Generating

Program for the Tribals.

During 2007-08 also training was imparted to 7000 Gum pickers and 2000 Honey

hunters with the financial assistance of TRIFED, New Delhi . Another 2000 tribals have been

trained in the collection / processing of Medicinal plants under NMPB project during the year

2008-09.At present training to another batch of 2500 Gum Pickers is in progress.

Regeneration of NTFP species


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GCC in coordination with KOVEL FOUNDATION has raised Gum Saplings and

distributed to tribals as detailed below up to 2006-07

Sl. No. Place of nurseryNo. of Gum

Saplings

1. R.Chodavaram (East Godavari Dist) 1500

2. Bhadrachalam (Khammam Dist) 600

3. Kasipatnam (Visakhapatnam Dist.) 500

4. Utnoor (Adilabad Dist) 15000

Total 17600

In 2007-08, GCC in coordination with Kovel Foundation & ITDA organized

raising of Gum Karaya Nurseries at Bangarampeta of Kasipatnam Society (20000), Tallapalem

of R.Chodavaram Society 30000 and 20,000 saplings at Gokavaram and at Vummadivaram

V.R.Puram Mandal of Khammam District (10000). The grown up saplings were distributed tothe beneficiaries.

During 2008-09, 2,50,000 Gum Saplings were got raised by M/s. Roar Bio,

Visakhapatnam for distribution to different divisions of GCC. So far 1, 10,000 saplings were sent

to Seethampeta , Bhadrachalam and Visakhapatnam Divisions

Training to Field Functionaries

Training programs are conducted at Divisional level to the CCPAs and to

Assistants (320 employees) to bring attitudinal change among them and to develop their

accounting & business skills.


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Two training programs were organized on online computing and

accountancy to all the employees working as Accountants in different societies during the year

2007-08 to acquaint with online accounting system.

SUPPLY OF ESSENTIAL COMMODITIES AND OTHER DOMESTIC REQUIREMENTS

TO TRIBALS:

The strategy to improve "Other D.Rs. Sales"

i. Establishing at least 100 Mini-Super Bazaars at Focal point villages / Mandal

H.Qs. in the tribal areas to facilitate pick and choose facility to the consumers.

ii. Supply of Cosmetics to Hostel boarders of all educational institutions located in

tribal areas of Andhra Pradesh.

iii. Introducing pulses and other requirements in sachets.

iv. Organizing additional sale counters in shandies.

v. Supplying other DR items like pulses, oils, chillies etc., required for Midday Meal

Scheme to the schools situated in the interior tribal area.


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vi. Supplying required items other than food materials to T.W. Hostels/ Ashram

schools as per approved indents of the ITDAs.

vii. Distributing rice relating to Food for Work Programme to the beneficiariesthrough DR Depots.

viii. Distributing LPG to women below the poverty line under Deepam Scheme.

DISTRIBUTION OF ESSENTIAL COMMODITIES THROUGH THE NETWORK OF

DR DEPOTS

The distribution of Essential commodities and sale of other daily requirements to

the tribal consumers through the net work of D.R. Depots is a major activity of GCC. This

activity is not simply a commercial but carries a greater social responsibility on the Corporation

to effectively cater to the daily food needs of the tribal consumers through the distribution of

Essential commodities on ration cards and supplying them other daily requirements at

competitive and reasonable prices duly ensuring quality. This activity also helps controlling the

prices in the tribal areas and curbing illegal activities of the private traders such as exploiting the

tribal consumers with spurious and adulterated food and cosmetic items, charging exorbitant

rates and under weighment, using unauthorized Weights and measures in the weekly shandies.

The D.R. Depot of GCC is the nearest Government establishment for the common tribal to

approach and seek help. GCC is having 839 D.R. Depots in agency areas of the State as detailed

hereunder, of which 102 depots were since handed over to Woman Self Help Groups (WSHG) as

per the directions of the Govt. of AP.

DIVISIONWISE NO. OF DEPOTS / SHG DEPOTS

Sl.

No.Name of the Division

GCC

Depots

WSHG

Depots

Total No. of

DR Depots

1 Seethampeta 48 13 61


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2 Parvathipuram 64 12 76

3 Paderu 106 16 122

4 Chintapalli 62 15 77

5 Rampachodavaram 121 23 144

6 Tirupathi 3 5 8

7 Bhadrachalam 147 2 149

8 Eturunagaram 70 2 72

9 Srisailam 29 12 41

10 Utnoor 87 2 89

Total 737 102 839

DIVISION WISE RATION CARDS POSITION

GCC is distributing Essential Commodities to 5, 27,135 tribal families through

the net work of 839 DR Depots. The details of Division wise cards position is detailed below:

Sl.

No.

Name of the

Division

No. of

DRDepots

Cards

White Pink AAY Annapurna Total

1 Seethampeta 60 11311 839 15227 74 27451

2 Parvathipuram 76 32938 981 9346 73 43338

3 Paderu 121 79617 20118 261 99996

4 Chintapalli 76 37504 12458 3 49965

5 R'Chodavaram 144 58252 20148 125 785256 Tirupathi 8 2954 414 3368

7 Bhadrachalam 153 80891 11396 10505 381 103173

8 Eturunagaram 72 45471 4326 95 49892

9 Srisailam 42 9034 231 4323 13588

10 Utnoor 87 49890 1152 6794 3 57839

TOTAL 839 407862 15013 103245 1015 527135


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Monthly average supply of PDS items

GCC is supplying 209731.56 Qtls. of PDS Rice, 22730.26 Qtls. of Hostel Rice TE

Hostels/ Ashram Schools, 8775 Qtls. of Sugar and 3235 Kilo Ltrs. Of K Oil through its net work

of DR Depots. The division wise monthly average of the items is as shown below:

(Qty. in Qtls. & Ltrs.)

Sl.

No.

Name of the

Division

PDS

Rice

AAY

Rice

Anna-

purna

Hostel

RiceSugar Kerosene

1 Seethampeta 2918.06 2598.25 423.20 2680.00 269.70 69400

2 Parvathipuram 4786.73 3200.04 0.00 1690.00 361.65 102184

3 Paderu 12144.92 7022.80 26.10 3621.77 544.48 237650

4 Chintapalli 5206.35 4363.45 30.00 1179.60 365.66 128722

5 R. Chodavaram 7722.89 6827.40 12.50 3830.00 744.79 233837

6 Tirupathi 459.00 83.00 33.00 12000

7 Bhadrachalam 11385.03 3680.60 39.60 5790.00 876.29 217004

8 Eturunagaram 5983.51 1832.75 2643.05 448.50 107861

9 Srisailam 1309.73 1508.05 976.77 111.85 29764

10 Utnoor 98507.00 28192.00 319.07 5019.00 2096900

TOTAL150423.2

259308.34 531.40 22730.26 8774.92 3235322

Mandal Level Stockiest (MLS) Points


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For effective distribution of ECs through DR Depots/ fair price shops, GCC has taken up

storage and distribution of ECs at 29 MLS points in 9 tribal districts at the following places:

Sl. No. Place of MLS Point Sl. No. Place of MLS Point

1 Seethampeta 16 Addateegala

2 Pathapatnam 17 Yeleswaram

3 G.L.Puram 18 Maredumilli

4 Kurupam 19 K.R.Puram

5 Saluru 20 Eturunagaram

6 Paderu 21 Mahadevpur

7 G.Madugula 22 Palwancha

8 Araku 23 Aswapuram

9 Kasipatnam 24 Dammapeta

10 Pedabayalu 25 Yellandu

11 Munchingput 26 Kukunoor

12 Chintapalli 27 Chintoor

13 G.K.Veedhi 28 Bhadrachalam

14 K.D.Peta 29 Venkatapuram

15 R. Chodavaram

Efforts to make DR Depots self supporting and improvement in other DRs Sales.

There is continuous improvement in sales of other DRs during the last six years as shown

hereunder:

(Rs. in Lakhs)

ACTIVITY 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Other DRs

Sales4250.20 4973.53 8038.12 9296.16 9128.91 10499.36 11714.49

Distribution of LPG


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For effective services while improving sale turnover, since 2000-01, GCC has taken up

the storage and distribution of LPG at 10 potential places as detailed below. GCC is issuing gas

connections and selling refills to tribal consumers, beneficiaries under DEEPAM scheme,

DWCRA, TW Hostel/ Ashram School in the area.

Sl. No. Society

1 G.L.Puram

2 Mahadevpur

3 Pedabayalu

4 Chintapalli

5 Eturunagaram

6 R.Chodavaram

7 Addateegala

8 K.R.Puram

9 Manuguru10 S.K.Nagar (Bejjur)

Supplies to TW Hostels/ Ashram Schools

In addition to the normal sale of ECs and other DRs items to the tribal consumers,

GCC is making credit supply of Rice and other food provisions required to the tribal inmates

residing in 880 TW Hostels/ Ashram Schools and other educational Institutions functioning in

the agency area as detailed below:

SL.

NO.DISTRICT

INSTITUTIONS SERVED BY GCC

ASHRAM

SCHOOLSHOSTELS KGBV

MINI

GURUKULAM

RESIDENTIAL

SCHOOLSTOTAL

I ITDA Areas

1 Srikakulam 41 9 1 2 4 57

2 Vizianagaram 46 12 2 1 6 67

3 Visakhapatnam 102 13 2 3 11 1314 East Godavari 59 19 7 85

5 West Godavari 39 18 3 60

6 Khammam 74 45 4 3 10 136

7 Srisailam 34 34

8 Warangal 41 40 5 4 7 97

9 Adilabad 112 12 5 4 8 141

10 Nellore 1 24 1 4 30


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Total 549 192 19 18 60 838

II Non-ITDA Areas

1 Chittoor 2 22 Kurnool 7 1 83 Mahaboobnagar 5 20 3 4 32

Total 5 29 4 4 42

Grand Total 554 221 19 22 64 880

Diesel / Petrol Bunk

GCC is operating one Diesel/Petrol Bunk at Rampa Chodavaram in East Godavari Dist. to

meet the fuel demand to the Govt. as well as private vehicles plying in the agency area.

Since the public response on the above Diesel/Petrol Bunk is much encouraging it is

proposed to install two more bunks one at Gumma (v) in Vizianagarm Dist. and another at

Domalapenta in Kurnool Dist.

Turnover for the last 4 years

The following are the particulars of DRs Sales conducted during the last 4 years:

(Rs. in lakhs

Sl.

No.ACTIVITY

ACHIEVEMENT

2006-07 2007-08 2008-09 2009-10

1 Essential Commodities - Cash Sales 6365.00 6772.35 4856.55 4599.10

2 Essential Commodities - Credit Sales 1052.11 1111.00 1077.93 1077.42

3 Other DRs. - Cash sales 5803.49 4924.87 4727.67 5497.90

4 Other DRs. - Credit sales 3568.60 4204.04 5771.69 6216.59

TOTAL 16789.20 17012.26 16433.84 17391.01

Targets fixed for the year 2010-11 (Rs.in lakhs)

1 Essential commodities- Cash sales 4744.00

2 Essential commodities- Credit sales 1114.00

3 Other DRs. - Cash sales 10037.00

4 Other DRs. - Credit sales 6605.00

Total 22500.00

CREDIT ACTIVITY


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GCC is acting as a lending institution in the tribal areas as far as credit to the tribal

members for their agricultural operations is concerned. This activity was grounded by

GCC during 1990-91 in 15 districts of Andhra Pradesh through its 43 affiliated societies.

The objective of GCC in this direction is to discourage private moneyl enders and

provide loans at low rate of interest and facilitate the tribals to repay the loans both in

cash or in kind.

Statement showing the year-wise disbursement and recovery of credit from 1999-2000 to

2009-2010:

(Rs. in lakhs)

Sl. No. Year

Total

Disbursement Recovery

1 1999-2000 493.93 198.58

2 2000-2001 502.45 443.19

3 2001-2002 322.88 399.54

4 2002-2003 268.56 265.72

5 2003-2004 260.42 321.10

6 2004-2005 355.66 343.48

7 2005-2006 347.70 329.54

8 2006-2007 343.42 394.44

9 2007-2008 374.34 1743.26

10 2008-2009 249.57 1684.68

11 2009-2010 159.45 125.68


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1. During the year 2007-08, GCC received an amount of Rs.1365.01 lakhs from

Government of India under prime Ministers Relief Package towards reimbursement of

Interest on loan accounts of 24 GPCM Societies in selected districts of AP

2. During the year 2008-09, GCC claimed an amount of Rs.1603.95 under Agricultural

Debt Waiver and Debt Relief Scheme -2008 ( ADWDRS- 2008) of Government of India

for all outstanding loans issued between 1997-98 to Khariff 2007 and which were

overdue as on 31.12.07 and remained unpaid as on 29.02.2008 which includes both

principal and interest. Out of this claim, an amount of Rs.1510.99 lakhs was received by

GCC through APCOB as on 10.10.09 leaving a balance of Rs.92.96 lakhs.

3. During the year 2008-09, GCC submitted claims to APCOB, Hyderabad for

reimbursement of an amount of Rs.62.12 lakhs being the loss of interest by GPCM

Societies on the waiver amount w.e.f. 1.03.2008 under ADWDR Scheme2008.

4. During the year 2008-09, GCC submitted claims to APCOB for reimbursement of an

amount of Rs.4.72 lakhs being the interest in excess of principal, penal interest etc., under

ADWDR Scheme2008

5. GCC has also submitted proposals to the Government / NABARD to extend the benefits

under the Credit Revival package of G.O.I to the GPCM Societies of GCC also on par

with the PACs. The same is under active consideration of the NABARD. The matter is

being closely pursued.

FINANCIAL PERFORMANCE

The GCC turnover for the last 9 years is given below:

(Rs. in Lakhs)


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Sl. No. Year Target Achievements

01 2001-2002 10000.00 11074.06

02 2002-2003 11000.00 11005.96

03 2003-2004 11000.00 12687.63

04 2004-2005 13000.00 15986.15

05 2005-2006 25000.00 19419.53

06 2006-2007 22800.00 21086.23

07 2007-2008 23452.00 20412.70

08 2008-2009 20000.00 20981.88

09 2009-2010 23505.00 20011.01


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RETAIL MARKETING DEPARTMENT

ISSUE PRICE TO DISTRIBUTORS & RETAILERS w.e.f. 01.11.2010

Sl.

No. Name of the Product Pack Size

Issue

Price to

C & F

Agents

Issue Price

toDistributors

Issue

Price to

Retailer

s

M.R.P.

1 2 3 4 5 6 7

1 HONEY 5 Kgs. - - - -

2 HONEY 1 kg. 175.00 197.75 217.52 255.00

3 Honey AGrade 500 Gms 100.00 113.00 124.30 145.00

4 HONEY 200 Gms 48.75 55.08 60.59 72.00

5 HONEY 50 Gms 17.00 19.21 21.13 25.00

6 HONEY 20 Gms 7.50 8.47 9.32 11.00

7 Ritu Aloevera Soap 150 Gms 21.60 24.55 26.90 30.50

8 Deseeded Tamarind 1 Kg 36.00 37.50 38.50 40.009 Pulp Tamarind 1 KG 38.00 00.00 00.00 00.00

10 Pulp Tamarind 500 Gms 00.00 00.00 00.00 00.00

11 Flower Tamarind 1 Kg. 40.50 00.00 00.00 00.00

12 Flower Tamarind 500 Gms 00.00 00.00 00.00 00.00

13 RAJMAH RED 500 Gms 33.00 36.00 38.20 43.00

14 RAJMAH WHITE 500 Gms 33.00 36.00 38.00 43.00

15 WHITE BEANS 500 Gms 17.00 19.00 21.00 23.00

16 KATTINGS 500 Gms 24.00 26.00 27.50 31.00

17 SOYABEANS 200 Gms 9.50 10.50 11.50 12.50

18 Soyabean Powder 200 Gms 16.80 18.00 19.00 21.50

19 Dry Chillies 500 Gms 40.00 43.00 46.00 50.0020 Chilli Powder 500 Gms 43.00 46.50 49.50 55.50

21 Chilli Powder 100 Gms 8.50 9.50 10.50 12.00

22 Chilli Powder 200 Gms 17.00 18.50 20.00 22.50

23 Turmeric Powder 100 Gms 17.00 19.50 21.50 25.00



26 Ritu Neem Soaps 100 Gms 10.30 11.70 12.80 14.50

27 Ritu Neem Soaps 75 Gms 7.90 8.90 9.75 11.00

28 Ritu Turmeric Soaps 100 Gms 11.30 12.85 14.10 16.00

29 Ritu Turmeric Soaps 75 Gms 8.80 10.05 11.00 12.50

30 Ritu Aloever Soap 125 Gms 17.70 20.10 22.05 25.00





35 Sheekai Powder 200 Gms 15.70 17.85 19.75 22.50

36 Sheekai Powder 100 Gms 9.80 11.05 12.00 13.50


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37 Soapnut Powder 200 Gms 17.40 19.75 21.65 24.50

38 Soapnut Powder 100 Gms 10.30 11.70 12.80 14.50

39 AMLA POWDER 200 Gms 14.20 16.30 17.95 20.50

40 AMLA POWDER 100 Gms 7.90 8.90 9.75 11.00

41 Sheekai Pods 500 Gms 6.50 00.00 00.00 10.00

42 Sheekai Pods 1000 Gms 12.00 00.00 00.00 20.0043 Soap Nuts(Akkaram) 1000 Gms 22.50 24.50 26.50 30.00

44 Soapnuts (Forest) 1000 Gms 14.20 16.15 17.65 20.00

45 Soapnut Pulp Akkara 500 Gms 25.00 28.70 31.55 36.00

46 Soapnut Pulp(Forest) 500 Gms. 19.60 22.40 24.60 28.00

47 Hill Brooms Grade-1 26.50 30.35 33.35 38.00

48 Coffee Powder 250 Gms. 38.00 43.00

50 Coffee Powder 100 Gms. 14.00 18.00

51 Honey Soap 75 Gms. 18.00 25.00


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CHAPTER-III

THEORETICAL FRAMEWORKOF THE STUDY

Theoretical Background of the study


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THEORETICAL FRAME WORK OF THE STUDY

THE CONCEPT OF THE VARIANCE ANALYSIS

Meaning: The term Variance means derivation, difference and so on. The variance in

accordance standard costing is meant as the difference/ deviation in between two different costs

standard cost and comparable actual cost incurred during the period.

The variance of the specific element of the cost should be periodically checked. The

variance is classified into two categories.

Variance

Favorable Variance

Standard Cost > Actual Cost

Un favorable / Adverse Variance

Actual cost> Standard Cost

Planned costs are greater than the

incurred actual cost during the

period.

Planned costs are less than the actual

costs incurred during the period.

Actual cost is well within the

anticipating cost- cost effectiveness

Actual cost incurred is more than theanticipating costineffective


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The variance can be classified into two categories, based on controllability viz controllable and

uncontrollable variance.

Variance

Controllable VarianceThe difference in betweenstandard cost and actual cost,

which can be controlled

Excessiveuse of raw materials

by foremen

Uncontrollable varianceThe difference in between standard

cost and actual cost cannot be4controlled

Price increase

Increased Demand Decreased Supply

Defective supply of

raw materials

Wrong ascertainment

of cost

Responsibility of costAccounting Dept.

Responsibility ofpurchase department

No one is specifically responsible for

price increase


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The purpose of standard costing is to correct the variance, which is in between standard cost and

actual cost.

CLASSIFICATION OF VARIANCES

There are two types of variance viz. Cost Variance and Revenue Variance.

Cost Variance:Cost variance can be further classified into three categories:

a. Material Cost Variance

b. Labour Cost Variance

c. Over Head Variance.

Revenue Variance: From the above classified types, Let us discuss every variance in detail in

the remaining chapter.

Material Variances

Material Cost Variance (MCV)

The name of the variance is selfexplanatory, means that the difference in between

the standard cost of material and Actual cost of material. The material cost variance is in

between the standard material cost for actual production in units and actual cost.

Material cost variance can be computed into two different ways:

Direct Method

In directed Method.

Direct method

It is a method simply studies the deviation in between the two different cost of

materials without giving any emphasis for other factors of influence viz. the quantity of materials

and price of a material.

Under the direct method, the comparison is in between the standard cost of material

which is the planned cost of material before commencement, scientifically developed by

considering the all other factors of influence and the actual cost of materials, which is actually

incurred during the production.

Why standard cost is to be tuned to the level of actual cost?

The main aim of computing the standard cost for actual output is that the standard

cost developed is not to the tune of actual production in units, instead it is available in terms of


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per unit of a product / for overall production e.g. for a year. To have leveled comparison in

between the standard cost has to be designed to the tune of actual cost.

Material cost variance = Standard cost of material for actual output Actual cost of raw

materials.

= (SQAOX SP)(AQXAP)

Indirect Method

It is a method which computes the material cost variance by considering two important

variances viz., material price variance and material usage variance. Under this method material

cost variance is calculated through the summation of the variance viz., price and usage of

materials.

Material price variance

It is very simple to understand that the name of the variance is selfexplanatory in

explaining the meaning of the variance. It is a variance in between two different prices viz., the

standard price and actual price of Raw materials. The difference should be expressed only in

terms of the actual usage of materials. The ultimate of aim of expressing this variance in the

lights of actual usage of materials is to identify the deviation of the price changes in line with the

purchase of raw materials.

Material price variance = (SAAP) AQ.

Material usage or quantity variance

The variance / deviation is in between the standard quantity of materials and the actual

quantity of material consumed. The found variance in Kg of raw materials should be expressed

in monetary values i.e. in terms of rupees, through the multiplication with the standard price is

the price, which is totally free from market fluctuation i.e. supply and demand factors of the

market.

Usage variance = Standard price X.

Material mix variance

This kind of variance arises only due to the mixture of various raw materials to

produce and to get an output. Normally the process of production involves more than two

materials to get the output. For e.g. the firm mixes the raw materials of A & B at the ratio of the

mixture is called Material Mix.


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The above mentioned ratio is being changed by the firm fro actual production in producing a unit

of product .

The change in the material mix due to various reasons, those are following:

In adequate supply of raw materials.

Price factor of a material

Introduction of a new system of production due to expansion.

Substitution of a material due better quality and chapter price than the exciting material in

current system of procurement.

Material Mix Variance = Standard price (Revised Standard QualityActual Quantity) from the

early discussions, it is clearly understood that the revised standard mix of materials will be the

same only during the moment at which the total actual and standard quantity of materials are

equivalent to each other and vice versa.

Material Sub-usage Variance

This is the variance in between standard quantity and revised standard quantity of

materials denominated in terms of standard price. The purpose of studying the difference in be

these two is to analysis the amount of deviation of the standard against the revised standard in

line with he actual fluctuation in the quantity of materials consumption during the productionprocess. It is the only variance highlights the difference in between the early set standard and the

redesigned standard in terms of actual quantity of materials for meaningful comparison.

Material Sub usage variance = Standard cost per unit (standard quantity revised Standard

Quantity).

Material yield Variance

It is one of the components of the material usage variance which arises only due to the

deviation in between the standard yield determined and actual yield accrued. This variance

highlights either the abnormal loss of material or saving of materials. This variance plays most

important role in the process industries, to assess the loss/ wastage of materials. If t

Documents

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