annual report of milma 2012

milma - The goodness Kerala Wakes uptoA

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milma

Annual Report2011-2012

Kerala Co-operative MilK MarKeting Federation ltd.Thiruvananthapuram


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1. Board of Directors

2. AGM Notice

3. Report for the year 2011-12

4. Review of Operations

5. Centrally Sponsored Schemes

6. Welfare and Developments Activities by Regional Unions

7. KCMMF Units

A. Central Products Dairy

B. Cattle Feed Plant, Pattanakkad & Malampuzha

C. Milma Training Centre, Trissur

8. Divisions at KCMMF Headquarters

A. Information Technology

B. Purchase

C. Quality Control

D. Milk Procurement & Input

E. Marketing

F. Projects

G. Human Resource Development

H. Audit

I. Finance

9. Future Plans

10. Acknowledgements

11. Abstract of the Audited Accounts for the Year 2009 – 2010

12. Balance Sheet as on 31.03.2011 & 31.03.2012(Provisional) with schedules

13. ProfitandLossAccountfortheyear2010–2011&2011–2012(Provisional) with schedules

C O N T E N T S


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BOARD OF DIRECTORS FOR THE YEAR OF REPORT(As on 31.03.2012)

Sri. P.T. Gopala Kurup Chairman, KCMMF

Sri. T. K. Manojkumar IAS Principal Secretary (NORKA, AH &DD)

Sri.P.P.GopinathaPillai Chairman,MRCMPULtd

Sri.KalladaRamesh Chairman,TRCMPULtd.

Sri.M.T.Jayan Chairman,ERCMPULtd.

Sri. B.S.Khanna General Manager, NDDB

Sri.S.AyyappanNair Representative,TRCMPULtd.

Adv.S.SadasivanPillai Representative,TRCMPULtd.

Sri.P.A.BalanMaster Representative,ERCMPULtd.

Sri.K.K.Jacob Representative,ERCMPULtd.

Sri.K.N.Mohan Representative,MRCMPULtd.

Smt. K.T.Sarojini Director, Dairy Development Dept.

Sri George John Jt. Secretary, Finance Department Government of Kerala

Sri. P. K. Pathak IFS Managing Director


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KERALACO-OPERATIVEMILKMARKETINGFEDERATIONLTDNo.4345, Milma Bhavan, Pattom Palace P. O

Thiruvananthapuram

No.AGM/2011-12 21.07.2012

Sir,

Sub: - 39th meeting of the General Body of the KCMMF - convening of - issue of notice

Notice is hereby given that the 39th meeting of the General body of the KCMMF will be heldatKCMMFHeadOffice,MilmaBhavan,Pattom,Thiruvananthapuramat11AMon22.08.2012 to transact the following business: -

1. Approval for the notice and Agenda for the 39th meeting of the General BodyoftheKCMMFLtd.

2. Confirmationoftheminutesofthepreviousmeetingandactiontaken.3. Presidential Address.4. PresentationoftheAnnualReport,BalanceSheetandProfit&LossAccount

(provisional) for the year 2011-12 (period from 01.04.2011 to 31.03.2012) in respectofKCMMFLtd.

5. Supplementary Budget for the year 2011-20126. Approval of the Budget for the year 2012-2013 covering the period from

01.04.2012to31.03.2013inrespectofKCMMFLtd.7. Audit Report for the year 2009-10.8. Questions and Answers.9. Resolution if any.10. Writing off ofa.b.11. Any other item with the permission of the Chair.

I request you to kindly make it convenient to attend the meeting.

The questions to be answered and the resolutions, if any, to be adopted in the meeting willhave tobe forwarded to thisOffice soas to reachonorbefore ------------------- at5.00PM.

Yours faithfully, Sd/-

MANAGING DIRECTORBy order of the Board


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Respected Members,

It gives us immense happiness in welcoming you all to the 39th Annual General Body MeetingofKCMMF.OnbehalfoftheBoardofDirectorsofKCMMFLtd.wearehonoredto present the Annual Report and the Financial Statement of our Federation for the year 2011-12.

Milma has been in the forefront in providing nutrition to the people of the state of Kerala in the form of top quality milk and milk products and other foods and beverages. Since the last quarter century, Milma has invested better to understand the needs and aspirations of the consumers in the state. Economic growth and increased prosperity in recent years has helped to focus on the potential of the state and raise awareness that good food is essential to stay healthy. Milma brand has contributed to reach more and more consumers with products that can provide nutrition, health and wellness. As the awareness among the public increases, it becomes a challenge for Milma to maintain and improve quality of its products to provide balanced nutrition to the society. On one hand, large sections of the population do not have basic knowledge of nutrition and on the other hand, there is concern about increasing problem of lifestyle diseases including Diabetes, Obesity etc. Therefore it is in our long-term interest to make people stay healthy and reduce cost of healthcare. Milma has been contributing to the state economy and in the socio-economic development of the state and has a significantrole in supplementing family income and generating gainful employment in the rural sector, particularly among the landless, small and marginal farmers and women, besides providing cheap and wholesome nutritional food to the millions of people in the state.

Ourorganizationperformedexceptionallywellintermsofgrowthandprofitabilityby capturing opportunities and executing on the ground. Business demand rose steadily through the year and revenues for the financial year grew annually at 20.15% on aconsolidatedbasis.Ourabilitytoincreaseprofitabilityinthefaceofstrongoperationalheadwindswasalsosignificant.Ournetprofitsgrewby112.6%toatuneofRs.648.00Lakhs,(provisional)duringthefinancialyear2011-12.Theyear2011-12wasarespectableyear for the Federation. The year saw milk production rise to a new height. This was mainly due to the increase in milk price by ` 5.00 per litre from 05.09.2011, of which Rs. 4.20 was passed on to the farmers. Though we still continue to depend upon neighboring

states for our sales requirement, there was no shortage of milk during the year. The milk procurement has shown an increasing trend throughout the state, which is a healthy sign for the future.

We were able to solve the issues in the cattle feed sector to a great extent this year. There was commendable improvement in the quality of our feed, whichreflectedinthemarketincreaseon the sales. We conducted meeting with the Presidents and Secretaries of

Kerala Co-operative Milk Marketing Federation Ltd.Thiruvananthapuram


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APCOS in all districts of Kerala successfully with good participation. This helped in improving not only the sales of our feed but also helped foster better relations between the APCOS and Cattle Feed Plants.

Honorable Members, during the year our Unions collected on an average 7,82,352 litres ofmilkdaily. This is an increaseof16.24%over theperviousyear,which isagreatachievement. This increase is on account of the culmination of the better pricing and major welfare activities undertaken by the Federation and Unions. The average milk saleperdayreached11,75,561litreswhichisanincreaseof6.96%overthepreviousyear.This remarkable performance has reduced our dependence on outside states for milk. This thrustshouldserveasastepping-stone forus toachieveself-sufficiency inmilkproduction.Thedemandformilkisexpectedtoincreasesignificantlyinthenext5yearsas per the projection of the Planning Commission and the NDP. Therefore Milma has to draw up strategic plans to meet the increasing demand of milk in the state.

During the financial year, Sri. Manojkumar IAS, replaced Sri. Subrata Biswas IAS,Principal Secretary, Government of Kerala. There was no other change in the Board.

PAID UP SHARE CAPITAL

0

50

100

150

TRCMPU ERCMPU MRCMPU

Share Capital in LakhsTable 1:PAID UP SHARE CAPITAL OF KCMMF

`.inLakhs

TRCMPU 78.69

ERCMPU 30.67

MRCMPU 102.33

TOTAL 211.69

Fig. 1: Paid up Share Capital of KCMMF

NUMBER OF APCOS

Ason31.03.12thetotalnumberofAPCOSfunctioning(bothaffiliatedandnonaffiliated)are 3059. The Union wise break up is given below.

1027

967

1065

TRCMPU

ERCMPU

MRCMPU

Fig. 2: Number of APCOS in KCMMF


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OPERATIONS ASSESSMENT

Milk Procurement

During the year 2011-12 averaged 7,82,352 litres per day representing an increase of 16.24%over6,73,030litresperdayofthepreviousyear.Theincreaseinprocurementshowshealthytrendsandthefarmer’sconfidenceintheirproduce.Theaveragemilkprocuredperdayduringthelasttwofinancialyearsisgivenbelow

Table 2: Average milk procurement per day

Procurement kg/day

2010-11 2011-12 %Diff

TRCMPU 1,50,477 1,87,768 24.78

ERCMPU 1,56,309 1,75,531 12.30

MRCMPU 3,66,244 4,19,053 14.42

Total 6,73,030 7,82,352 16.24

050000

100000150000200000250000300000350000400000450000


Regional Unions

Av.

Milk

Proc

urem

ent/

Day

2010-112011-12

Fig.3: Average milk procurement per day

MILK SALES

Thegrowthinsaleshasbeenimpressiveshowingtheconsumers’continuedconfidencein our brand. The average sale during the year was 11,75,561 litres showing an increase of6.96%overthepreviousyear. Thisgrowthisquite impressivecomparedwiththe2.55%growth achieved in thepreviousyear. Thegapbetween supply anddemandwas bridged by import of milk from Karnataka; MMPO registered private Dairies and purchase of skimmed milk powder (SMP).


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Table 3: Milk sales per day in litres

Union Milk Sales ltrs. per day

2010-11 2011-12 %Diff

TRCMPU 4,34,408 4,68,229 7.78

ERCMPU 2,72,647 2,95,902 8.53

MRCMPU 3,92,041 4,11,430 4.95

Total 10,99,096 11,75,561 6.96

Procurement Vs Sales(Lakh litres per day)

1.88 1.764.19

4.68 2.96

4.11


SalesProcurement

Fig.4:MilkProcurementVsSales

MILK PRODUCTS

Our organization has always emphasized its preference for reaching consumers with fresh and quality products. It has always recognized the importance of an efficientdistribution structure that delivers these products from factory to consumers in the shortest time.

The Federation has done remarkably well in the sales of most of the milk products. The details of sales of various products are tabled below:

Table4:SALESOFMILKPRODUCTS

TRCMPU

Products 2010-11 2011-12 % Diff

GHEE (MT/Annum) 815 994 21.96

BUTTER (MT/Annum) 65 99 52.30

ICE-CREAM(Ltrs/Annum) 175956 202781 15.25

CURD (Kgs/Annum) 4486422 5045190 12.45

SAMBHARAM (Packets/ Annum) 1075195 1135445 5.60


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ERCMPU

Products 2010-11 2011-12 % Diff

GHEE (MT/Annum) 615 738 20.00

BUTTER (MT/Annum) 54 85 57.41


CURDSALES(Kgs/Annum) 4204376 4734320 12.60

SAMBHARAM (Packets/ Annum) 834531 825090 -1.13

MRCMPU

Products 2010-11 2011-12 % Diff

GHEE (MT/Annum) 1779 2068 16.25


CURD (Kgs/Annum) 15418013 17089160 10.84

SAMBHARAM (Packets/ Annum) 8167240 9821890 20.26

MILMAPLUS(Bottles/Annum) 275858 404355 46.58

CPD

Products 2010-11 2011-12 % Diff

GHEE (MT/Annum) 207 265 28.02

MILMAPLUS(Bottles/Annum) 703384 845775 20.24

GOVERNMENT OF INDIA SPONSORED SCHEMES

The Government of India has funded various schemes like Strengthening Infrastructure for Quality and Clean Milk Production (SIQ & CMP), Integrated Dairy Development Programme (IDDP), Idukki and Kuttanad packages. The Regional unions of the Federation in their operational areas are implementing these schemes.

The IDDP encompass support for new and revived Societies, subsidy for purchase of milk can, establishment of Automatic Milk Collection Units, grant for milk testing chemicals, subsidyfordemonstrationplots,subsidyforcattleshedflooring,trainingsupportforUnion Staff, DCS Staff, AH Promoters & Management Committee Members, support for farmers for induction programme and training on Dairy Animal Management.

The SIQ & CMP programme encompass farmers’ Training on clean milk production, support for establishment of bulk milk cooling facility with accessories, purchase of detergents, anti septic solution and muslin cloth, support for strengthening lab facilities for MCPs, dairies and BMC societies, support for purchase of SS Utensils for DCS etc.

Under Idukki Package renovation of existing cattle sheds and construction of new cattle


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sheds are carried out by ERCMPU. The Technical Monitoring Committee (TMC) is convened periodically to review the progress of SIQCMP/IDDP.

VARIOUS DEVELOPMENT ACTIVITIES BY REGIONAL MILK UNIONS

In order to enhance milk production and for the welfare of the farmers, the Regional milk unions undertook various measures which are listed below.

TRCMPULtd.

v Veterinaryunitsfunctioninginvariousmilk societies

v Artificial Insemination centers in 20societies

v Implementation of Gosuraksha scheme

v Fodder development schemev Grant for Higher Education to children

of loyal farmersv Grant to families of members who have expired.v Transportation charge for bringing cattle from outside the state. v Subsidy for cattle feed.v Insurance subsidy for Dairy farmersv Incentive for milk production and summer incentivev Revolving fundv Development schemes for increasing milk production

ERCMPULtd.

v Veterinaryemergencies&campsonceinamonthinselectedsocieties.v Decentralised veterinary units and AI centers.v Interest subsidy for cattle loans.v Cattle insurance premium subsidy under Gosuraksha scheme.v Subsidy for purchase of milking machines. v Building grant to societies. v Mediclaim insurance policy for farmers v Group gratuity insurance scheme for society employees and their families.v Subsidy for cattle shed construction /renovation in Idukki district under centrally

sponsored scheme. v Installation of BMCv Supply of fodder seeds to selected farmers free of charge.v Subsidy for training of Management Committee and staff of societies. v Career guidance programme for the children of farmers & society staff.v Subsidyforpurchaseoffloormatsforcattlesheds.v Subsidy for supply of bailed straw to farmers.


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v Supply to milk cans at subsidized rates to societies.

MRCMPULtd.v Feeds & Fodder Programme –Supply of balanced cattle feed through primary

societies at subsidized rate.v Summer Feeding – Paddy straw -procured from Palakkad District, baled at

Pattenchery Bailng Unit and supplied to societies in northern districts.v Training Programme– Training of Farmers, Presidents, Secretaries, Testers,

Committeemembers,AIWorkers&VRPsandFarmEntrepreneursfollowedbyfieldvisittotheDairy,CattleFeedFactoryandbreedingcenter/fodderfarm.

v Subsidy for cattle shed from Union Fundv Cattle Insurance.v Awards for best farmers & APCOS.v Ksheera Karshaka Suraksha Padhathi v LICSamoohyaSurakshaPadhathi(formembersofmemberAPCOS)v LICJanasreeBhimaYojana–(Age-18-59)v Group Insurance Scheme for JBY enrolled farmersv Mediclaim Insurancev Treatment aid for farmers suffering from fatal diseasesv Scholarship to the children of farmers and Union staffv Building grantv Special Building grant to BMC Societiesv Group Gratuity Insurance scheme

UNITS UNDER KCMMF:

CENTRALPRODUCTSDAIRY(CPD),ALAPPUZHA

Central Products Dairy (CPD) located at Punnapra, near Alappuzha was established as a facility for the manufacture of value added products. Products like Mango drink, both in tetra pack (custom packed) and pet bottle, Packaged Drinking Water (custom packed), Dairy Whitener, Peda etc are manufactured and sold from CPD. The sale of Milma Plus, aflavoredmilkdrinkinfiveflavorshasalsobecomeanattractiveproductanditssalehas also increased considerably. There was no restriction in sale of milk during 2011-12, as required quantity milk was made available according to the sale volume. CPD produces ghee in two brands – Milma and Samrudhi. The ghee and Dairy Whitener sale showed a remarkable improvement during 2011-12 compared to previous year. The annualturnoverofCPDwashigherby11%thanbudgetedduring2011-12andgeneratedaprofitofRs.49.31lakhsin2011-12.

Certain modernization works were planned and executed at CPD during the current year under Plan Fund for process enhancement, homogenization and automation of production line of Ghee, Juice and Milma Plus. The production facility of Peda is alsoenhancedwiththeinstallationofnewPedaVatalongwithadequatefacilitiesforpacking.


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Table 5: Sales of Milk and Other Products from CPD

Product Unit of 2010-11 2011-12 % Differ Revenue Measure- earned / ment Rs. lakhs Toned & Double Toned Milk (included in TRCMPUsales) Ltrs/Day 69123 79457 14.95 6781.82

Milma & Samrudhi Ghee MT 207.2 264.81 27.80 845.85

Curd Kg 648793 791069 21.93 215.69

Dairy Whitener Kg 25284 130598 416.52 323.05

MangoJuice(Refresh) Ltrs 509729 530033 4.16 210.96

Milma Plus Bottle 703384 845775 20.24 106.33

Packaged Drinking Water Cartons * 16023 24790 14.94 25.89*12 bottles per carton

The Milk Powder Factory, which was commissioned in 1996, has an installed capacity to manufacture 10 MT of skimmed milk powder per day. However, due tonon-availabilityofsufficientmilk,thisfactorydidnotoperateinthereportingyear.

CATTLE FEED PLANT, PATTANAKKAD & MALAMPUZHA

The Cattle Feed Plants under KCMMF, one at Pattanakkad and the other at Malampuzha produce good quality pellet feed. Each plant has capacity of 300 MT per day. The feed is distributed through primary co-operative societies, dealer networks and Government departments, engaged in animal husbandry activities. The farmers have great acceptance for Milma cattle feed which is perceived from the increasing market share. Determined efforts were taken to supply quality feed for milk production during the year 2011-12. APCOS are provided with sales discounts as well as incentives. Supplying good quality cattle feed by Milma at reasonable price acts as a control device in the market for the competitors to maintainthequalityandpriceoftheirfeedwhichultimatelybenefitsthedairyfarmers. Mineral Mixture is also produced at Cattle Feed Plant Malampuzha and also distributed through our existing network.

Through various steps initiated during the reporting year, we achieved remarkable improvement in the quality of feed in both our Cattle Feed Plants. Meeting with Presidents and Secretaries of APCOS in all districts and dealer meet was conducted in the reporting year. All these contributed to improvement in the quality and sales of our feed. Special care and attention was paid at all stages of operations like purchase of quality raw material, unloading, proper storage, dumping, production, packing and transportation. Recent analysis of various brands feed at NDDB showed that Milma Super special feed supplied from our


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Table 7: SALES OF CATTLE FEED (Qty in MT)

Units APCOS Dealers Govt. Others Total

Pattanakkad 39778 5648 11771 335 57532

Malampuzha 52992 3880 8129 4 65005

Total 92,770 9,528 19,900 339 1,22,537

Malampuzha Cattle feed plant is the most superior feed in all quality parameters compared to other similar brands in Kerala and this feed has played a vital role in milk production increase in Malabar area. The landed cost of raw material in our plants is high due to long distance transportation. Technical problems due to power failure, breakdown of the ageing machinery etc. has led to our plant runningnear to 70%capacity. Amidst these limitations,weachievedareasonableproductionatbothPlants.TheCFPMalampuzhageneratedaprofitofRs.460.89lakhs(provisional)in2011-12andCFPPattanakkadwasbackinprofitat Rs. 188.54 lakhs (provisional) in 2011-12. Modernization of CFP, Pattanakkad is envisaged to replace old and outdated machineries at CFP Pattanakkad.

The details of production and sales of cattle feed in the reporting year are given below:

Table6:PRODUCTIONOFCATTLEFEEDINTHEYEAR2011-12

Unit Qty (MT) Capacity Utilization(%)

Pattanakkad 56834 63.15

Malampuzha 64840 72. 04

Total 121674 67.67

APCOS76%

Dealers8%

Govt.16%

Others0%

Fig. 5: Cattle Feed Sales Proportion

Though there was scarcity for some of the raw materials, we could succeed to produce and sell cattle feed more than the volumes achieved over the last few years. The production andsalesfiguresofthecurrentyearcomparedtopreviousyearareindicatedbelow:

121674

118387

122537

116854

114000115000

116000117000118000119000120000121000122000123000

2010-11 2011-12Year

Prod

uctio

n&

Sale

sin

MT

ProductionSales

Fig6:PRODUCTION&SALESOFCATTLEFEED


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MILMA TRAINING CENTRE, TRISSUR

The Federation had established the Milma Training centre to cater to the training needs ofvariousfunctionariesofPrimaryAPCOS.Varioustrainingprogrammesareofferedtoequip the hands of the farmers themselves with the basic essentials of the fundamentals ofcooperatives.TheTrainingCentreconductscoursesona“noprofit–noloss”basiswith the support of the Regional Unions.

During the reporting year, Milma Training Centre conducted various Training Programmes – both in-house and off campus – for all the different functionaries of Primary APCOS aiming at improving the quality of performance of the human resources available at the societies,whichinturnimprovedtheirtotalfunctionaleffectivenessandefficiency.Thetraining programmes conducted are APCOS President/ Secretary basic training, milk collectors/testers training, dairy animal management training, Management Committee orientation training programme etc. The training programme contents are identifiedbased on the roles of each category through a guided need assessment discussion at the beginning of each training programme. The training module includes ‘On the Job’ training and study tours. The system of non-formal and continuous evaluation continued during the year also. Post evaluation training has been done during the year mostly by visiting societies during off-campus training programmes.

The feedback received from various sources and the trainees themselves is quite encouraging.

KCMMF HEADQUARTERS

VariousdepartmentsattheheadquartersprovidesupportandgivesregularadvisestoRegional Unions for continual improvement. Some of the activities of the departments during the year are listed below.

MILK PROCUREMENT & INPUT (P & I)

The Regional Milk Unions of the Federation provide various inputs for assisting economic milk production and for improving the quality of milk. The veterinarians under the P & I wing of Regional Milk Unions conduct infertility check ups and prescribe corrective treatment. Dairy farmers get economic protection from the advent of disease and accident through insurance coverage schemes for their cattle. Balanced cattle feed is made available through primary co-operative societies. The milk reception in most of the dairies is in tankers and the can collection is limited. The P & I wing of the Federation serves as a link between the Regional Milk Unions and the Government of India and Kerala for the implementation of various schemes through grants and subsidies.TheofficialsoftheFederationvisit societies and meet the President/ Secretaries of the APCOS and gather their views or complaints regarding milk procurement, quality of cattle feed, other problems related to supply of feed etc. The same is then communicated to the concerned units for appropriate


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action. The Federation also organized meetings of P & I staff of the Regional Milk Unions, officialsofAPCOSandofdealersofcattlefeedatvariousintervals.Thisalsohelpedasamechanism for complaint redressal.

QUALITY CONTROL

The Federation has a Quality Control wing which renders technical and legal assistance to primary dairy co-operatives and Regional Milk Unions. The quality of Milma milk is maintained in accordance with the statutory standards. Apart from maintaining the required level of Fat and SNF percentage, the milma milk continues to maintain satisfactory level in bacteriological quality also. The samples of milk, ghee and other products and water are tested at the government analytical laboratories and other accredited laboratories in addition to the testing at the well-equipped Quality Control laboratories attached to the dairies. Reports received from these laboratories have indicated satisfactory quality level in all samples.

Complaints from Consumer’s on the quality problems of our products have reduced appreciably and prompt action is taken for replacement whenever spoilage complaints are reported. Medical check-up is done on a yearly basis on all employees working in the plant and medical insurance for the employees is being carried out in all dairies.

The cattle feed plants are advised regularly to maintain the quality of the cattle feed produced by ensuring the quality of raw materials and maintaining the standards as per BIS. The samples of feed are sent to accredited laboratories and to NDDB for analysis. The results are compared with local results and changes are made in the formulae accordingly.

The Quality Control wing ensures that milk received from other states especially private dairies is of good quality. It conducts surprise checks in the premises of these dairies and advises the dairies accordingly. Timely advise is given to the dairies to maintain proper quality of milk and milk products by performing tests at various levels.

MARKETING

The milk procurement in our Regional Milk Unions showed a downward trend in the early months of the reporting year and we managed the milk supplies by import of required quantity of milk from neighboring States. The reason for this was the dairying in the state become increasingly uneconomical and farmers started quitting the profession.

KCMMF commissioned a study to assess the actual cost of production that prevails at the farm gate and to suggest strategic options to overcome the drop in milk procurement. The StudywascarriedoutbyDr.N.R.Unnithan,formerMDofKLDBoardandConsultant-Dairy&Livestock,DrA.K.Joseph(formerSeniorGeneralManager,NDDB)andProfKoshy.P.Mathew (former HOD Economics, Kerala University) in the year 2010 and submitted its report in February 2011.

TheBoardofDirectorsdeliberateduponthefindingsandrecommendationsofthereportand decided to increase the selling price of milk by Rs.5.00 per litre and to increase the procurement price by Rs.4.20 paise per litre paid to farmers in Feb 2011. However, Milma could not implement this decision as Government of Kerala and Registrar, of Dairy Co-operatives stayed the implementation of the decision. The Chairman on behalf


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ofBoardofDirectorsofKCMMFapproachedtheHon’bleHighCourtofKeralaandfileda writ petition with a plea to issue necessary directions to the State and the Registrar not to interfere in the decision of the farmer’s cooperative.

After long arguments in the court, the Hon’ble High Court of Kerala in WP(C). No.13468/2011 quashed the orders / decisions of the Government on staying the decision of the KCMMF Board to revise the selling and procurement price of milk and declared that the State Govt. and the Registrar have no right or authority to interfere with the

Sharing of increase in price

To Farmers Rs.4.20

To Society Rs.0.20

To Agency Rs.0.20

To Welfare Measures (Pension) Rs.0.00

To Milma Rs.0.20

To Cattle Feed Price intervention Fund Rs.0.00

To fund for escalation in Petroleum prices and electricity charges Rs.0.20

TOTAL Rs.5.00

MilkVariant/Quality PresentSelling evisedSelling Price/Rs.perLtr RPrice/Rs.perLtr

Double Toned Milk (1.5%Fat&9.0%SNF) Rs.22.00 Rs.27.00

Toned Milk (3.0%Fat&8.5%SNF) Rs.23.00 Rs.28.00

Homogenized Toned Milk (3.0%Fat&8.5%SNF) Rs.25.00 Rs.30.00

Homogenized Jersey Milk (3.2%Fat&8.5%SNF) Rs.25.00 Rs.30.00

Jersey Milk (Non Homogenized)(3.5%Fat&8.5%SNF) Rs.25.00 Rs.30.00

Rich Plus Milk(3.8%Fat&9.0%SNF) Rs.26.00 Rs.31.00

Standardized Milk (4.5%Fat&8.5%SNF) Rs.26.00 Rs.31.00

The selling price of milk before and after revision is given below:

The details of milk brought from outside states and milk reconstituted during the year 2011-12 are given below:


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Table 8: Milk Purchased from Outside State & Reconstitution for the period 2011-12

TRCMPU ERCMPU MRCMPU TOTAL

Milk Purchased (ltrs) 95379869 44505769 24851813 164737451

Avg/Perday(LPD) 260601 121600 67901 450102

MilkReconstituted(Litres) 7779855 3979150 3066002 14825007

Avg/Perday(LPD) 21256 10872 8377 40505

TotalDeficitManagement 103159724 48484919 27917815 179562458

Avg/Perday(LPD) 281857 132472 76278 490607

decision taken by the Federation to increase the procurement and selling price of milk. This was an historical judgment reiterating the right of the farmers to decide on the price of their product. This re established the autonomy of the cooperative in taking business decisions, which was appreciated across the country. The Board of Milma increased the selling price of milk increased by Rs.5.00 per litre and Procurement price Rs.4.40 per litre (Rs.4.20 to the farmer) w.e.f 05.09.2011. The sharing of the increased price was carried out as below:

Milma cattle feed is mainly marketed through APCOS, wholesale distributors, dealers and government agencies. We maintain constant liaison with APCOS and dealers to increase the sales volume and address complaints, if any. Milma Cattle Feed is sold to theAnimalHusbandryDepartmentin7districtsofKeralaundertheSpecialLivestockBreedingProgramme(SLBP).

PURCHASE

The purchase section purchases the raw materials required for the cattle feed plants and dairy consumables required for all the Dairies under Milma. A Purchase Committee consistingoftheChiefexecutivesoftheFederationandRegionalmilkunionsfinalizesthe purchase of dairy consumables. All India tenders are invited for dairy consumables and the suppliers are selected on the basis of quality and competitive price after following dueprocedures subject to approval of theBoard.Variouspackingmaterials are alsosourced in the same manner.

A Purchase Committee of the Federation carries out the day-to-day purchases of raw materials for Cattle feed production. The Cattle Feed Plants advises the committee forfinalizingthepurchasesofrawmaterials.Thevendorbasehasexpandedovertheyears ensuring timely supply of raw materials and packing materials of good quality at competitive price. This has helped us in maintaining the quality of our products. The year 2011-12 was a good year for KCMMF as the price of raw materials for cattle feed wasatmanageablelevelsandwecouldprocuresufficientgoodqualityrawmaterialsformaintaining the quality of our feed.

HUMAN RESOURCE DEVELOPMENT

Manpower is the core of our business strategy and we strive to ensure value and respect for every individual through an inclusive culture. The Federation has nearly 300 skilled, efficientandqualifiedpersonnelinitsunitsandHeadOffice.Overallwehaveatotal


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pool of nearly 1620 employees (including Regional Milk Unions) who work hard to achieve the objectives of the organization. We are making continuous efforts for the skill up gradation of the workforce by deputing personnel for on the job training as well as orientation courses, seminars etc. Employee relations during the year were harmonious and cordial.

The Federation takes the lead in formulation of the personnel policies, procedures and standardsbesidesframingofcommonservicerules,finalizationoflong-termsettlement,bonusetc.Labourrelationshipremainsgood,whichisoneofourmajorstrength,whichis clear from the fact that despite dealing with highly perishable commodities, there have been very rare instances of losses due to strikes. The Government during 2010-11 notifiedtheRecruitmentRuleforrecruitmentinKCMMF.Accordinglytheappointmentsat various level in KCMMF has been entrusted to PSC and appointments are expected to take place soon.

INFORMATIONTECHNOLOGY(IT)

KCMMF Computer Center has been progressively implementing the in-house developed Oracle based Enterprise Resource Planning (ERP) dairy and Cattle Feed Packages and services deploying the best technology available. Rapid advancement in Information Technology (IT) made a paradigm shift in the way business at large has been conducted anddairysectorwasalsonotanexception.Thefiercecompetitionbeingexperiencedin the Cattle Feed area especially from private Cattle Feed manufacturers as well as Cattle Feed manufacturers in the PSU drove the management to adopt IT in the most effective and rewarding manner. ‘MIIS’ [Milma’s Integrated Information System] through networking of Units was one of the early-adopted measures in this direction, by KCMMF Computer Center.

KCMMF Computer Center has been ahead vis-à-vis other State Federations to accomplish 100% in-house developed and fully automated IT solutions forDairy&Cattle Feedoperations.

Duringtheyear,bysettingupVirtualPrivateNetwork(VPN)betweenKCMMFHeadOfficeandCentralProductsDairyAlappuzha,CattleFeedPlantsatPattanakkadandMalampuzha,significant improvementwasachieved inmanagingServers,DatabasesandapplicationsremotelyfromKCMMFHeadOfficecomputers.Inlinewiththedifferentdimensions of business growth, the IT group has also stepped up its efforts to ensure adequate support to all Units under KCMMF and Regional Milk Unions. The focus is on application implementation and process improvements while enhancing the overall security of the information assets of the Company. During 2011-12 KCMMF Computer Center has implemented Network protection by installing security devices at KCMMF HeadOffice, Central ProductsDairyAlappuzha, Cattle Feed Plant Pattanakkad andCattle Feed Plant Malampuzha.

PROJECTS

The Engineering Projects under Federation/Regional Milk Unions are executed by the Projects section of KCMMF. Setting up of new Dairy Plants, Chilling centers, Cattle feed plants and expansion activities are done by the Projects section on consultancy basis. Projects are executed for the Dairy Department also on consultancy basis. The detailed project reports with cost estimation are prepared for all the projects. Before commencing


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the physical project work, the detailed planning regarding implementation of project is done. The financial and physical budgeting for implementation of the project,preparation of detailed engineering drawings, preparation of tender document and finalization,physicalimplementationoftheproject,monitoringtheprogress,Liaisoningwith statutory bodies for getting approval etc are carried out by the Projects Section. Purchase of dairy machinery, electrical equipment, steel, cement etc required for the project is also carried out by the Projects Section.

Thefollowinginfrastructuredevelopmentalactivitiesweretakenupwiththefinancialassistance under various schemes of Central Government, State Government and using internal resources for KCMMF and MRCMPU during the reporting year.

1. Cattle Feed Plant, Pattanakkad

The project work for the construction of new raw material godown and conveying system was completed and commissioned using the amount of Rs.150.00 lakhs received from Govt. under plan fund. The proposal for augmentation of molasses storage capacity with an outlay ofRs.121.45 lakhswas submitted to the StateGovt. seekingfinancialassistance, which is under consideration in the State budget 2012-13 plan fund.

2. Cattle Feed Plant, Malampuzha

The civil work for the new raw material godown and allied works are in progress. The mechanicalworksfortheconveyingsystemwasawarded.Thisprojectisfinancedbythe State Government under Assistance to Public sector undertakings for which Govt. has sanctioned an amount of Rs.200.00 lakhs in the State Budget 2010 – 2011 plan fund. The proposal for augmentation of raw material storage capacity by installing storage silos and molasses tank with an outlay of Rs.468.80 was submitted to the State Govt. seekingfinancialassistance,whichisunderconsiderationintheStatebudget2012-13plan fund.

3. Central Products Dairy, Alappuzha

The project work related to the expansion and products manufacturing facilities commencedinthereportingyear.Variousdairyequipmentswereordered.Thetenderprocess for purchase of remaining equipments and civil works are in progress. This project isfinancedbyStateGovt.under assistance toPublic SectorUndertakings forwhich Govt. has sanctioned an amount of Rs.215.00 lakhs in the State budget 2011-12 planfund.RenovationofcanteenandroofingovertheexistingRCCroofterracewerealso completed during 2011-12.

MRCMPU PROJECTS

1. Kozhikode Dairy

The civil works for the expansion of laboratory, curd process block, administrative block etc. were completed duringthefinancialyear.Furtherthecivilworks for the expansion of Kozhikode Dairywasstartedduringthefinancialyearwith an outlay of Rs.115.00 lakhs.


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2. Ice-cream Plant at Kozhikode Dairy

ThecivilworksfortheIce-creamPlantisinprogress.Thetenderprocessforfloatingelectrical works and structural glazing work is in progress. The total outlay of this project is Rs.275.00 lakhs.

3. Central Products Dairy, Naduvattom

CivilworksforconstructionofGodownBlockandStructuralRoofingoverfirstfloorofold plant building at Naduvattom Products Dairy, Kozhikode Dist. was completed in the financialyearwithanoutlayofRs.40.00lakhs.ThetenderforrevampingandexpansionofexistingETPatNaduvattomDairyatanoutlayofRs.22.00lakhswasfloated.

4. Palakkad Dairy, Kallepully, Palakkad.

Projectworks for the expansion of PalakkadDairy commenced during the financialyear with an outlay of Rs.165.00 lakhs. Civil work awarded and action initiated for the preparation of electrical tender.

5. Pattencherry straw pelleting plant.

The civil works for the plant building and straw bailing shed completed and the additional civil works subsequently awarded is in progress. The plant equipment erection and electrical installation works are in progress. The total outlay for this plant isRs.200lakhs.ThisprojectisfinancedbytheStateGovernmentunderAssistancetoPublic sector undertakings for which Govt. has sanctioned an amount of Rs.165 lakhs to MRCMPU in the Budget 2009 – 2010 and 2011-12 plan fund.

6. Vadakara Milk Chilling Plant.

Theconstructionactivitiesforthe10000LPDcapacitynewmilkchillingplantatVadakaracompleted. The ETP, mechanical and electrical installation work also was completed. The total outlay of this project is Rs.125.00 lakhs.

7. Kasargode Dairy Expansion Project.

The construction activities of the conference hall, structural glazing and ceiling work awarded are nearing completion. Action initiated for taking up the expansion of Kasargode Dairy under IDDP Scheme at an outlay of Rs.130.00 lakhs.

8. TMR Plant at Meenangadi.

The civil work for setting up of TMR Plant at Meenangadi, Wayanad Dist. commenced inthefinancialyearandisinprogress.Theelectrical and mechanical tenders are under preparation.ThisprojectisfinancedbyStateGovernment under Assistance to Public sector undertakings for which Govt. has sanctioned an amount of Rs.100 lakhs to MRCMPU under plan fund.


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9. Wayanad Dairy.

ThecivilworksfortheexpansionofWayanadDairyunderRSVYcommencedduringthefinancialyearandtheworkisinprogress.Thetenderprocessforelectrical,Refrigeration& mechanical equipment started. The total outlay of above project is Rs.505.00 lakhs.

ERCMPU PROJECT

1. Ernakulam Dairy.

Tender process for civil works for the expansion of Ernakulam Dairy and the tender for purchaseofequipmentstartedinthefinancialyear.TotaloutlayoftheaboveprojectisRs.835.00lakhs.ThisprojectispartlyfinancedbyCentralGovt.underNMPS–RKVYScheme.

AUDIT

A team of Auditors under the Deputy Registrar of Co-operative Societies carries out the concurrent audit of the Federation and the Regional Milk Unions. The Registrar of Co-operative Societies has already approved the audit certificate ofKCMMF for theyear 2009-10. The audit for the period 2010-11 and 2011-12 is in progress. A Concurrent auditor is posted in each unit and all aspect of our business is audited.

FINANCE

During the year 2011-12, KCMMF achieved a turnover of Rs.249.47 (provisional) crores intheasagainstRs.207.63croresduringthepreviousyear.Thenetprofitofthereportingyear is Rs. 854.91 lakhs (provisional).

Table 9: Turnover of KCMMF Units (Amount in lakhs)

% Increase over theYear CFP (P) CFP (M) CPD Total previous year

2010-11 6600.63 8012.95 6149.93 20763.51 7.23%

2011-12 7576.17 8988.25 8382.22 24946.64 20.15%

207.63249.47

2010-11 2011-12

Fig. 7: Turnover of KCMMF Units


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We have made an effort to improve the living condition of our farmers by giving them a remunerative price for their produce. We now have to encourage them to produce more milk and other agriculture products. We have to strengthen our farmers by enhancing their capability to produce more and thereby ensuring the prosperity of our state and nation.

FUTURE PLANS:

Kerala has become one of the frontline states in dairying. The demand for milk and milk products in the state is on the rise. The increased pace of urbanization and the purchasing power of the middle class are leading to a change in the lifestyle and consumption pattern, which will contribute to an increase in the consumption of processed food including dairy products. Investment and foresight in creating brand equity of Milma will help us maintainourmarketleadership.Beingselfsufficientinmilkproductionwillcontinueto be our dream which we intend to achieve within a few years.

We have made plans to improve the capacity utilization of our cattle feed plants by modernization. Improving quality of our feed will continue to be our target for the coming year. New and modern machineries will replace the existing outdated machineries and there will be improvement in the infrastructure too. Modernization of cattle feed plants as part of expansion will be initiated in the coming years. The expansion of Central Products Dairy by creation of new infrastructure is envisaged in coming years.

ACKNOWLEDGEMENTS:

The KCMMF Board of Directors desires to thank all those who have helped to make our Federation’s operation successful.

WeareobligedtotheGovernmentofIndiaforthefinancialsupportreceivedforvariousschemes.WearealsogratefultotheGovernmentofKeralaforallthefinancialsupportand co-operation extended to our organization from time to time.

TheNationalDairyDevelopmentBoardhascontinuedtoplayasignificantroleinourgrowth and development. The National Co-operative Dairy Federation of India has been providing us with invaluable support in co-ordination with other agencies and

Theturnoverandtheprofit/lossoftheFederationandtheUnionsforthefinancialyear2011-12 in comparison with previous year are given under:

Table 10: Turnover of KCMMF (Amount in crores) TRCMPU ERCMPU MRCMPU KCMMF TOTAL2010-11 389.53 273.62 488.25 207.63 1359.032011-12 494.74 323.02 556.87 249.47 1624.10%Diff 27.01% 18.05% 29.60% 20.15% 19.50

Table11:Profit/LossofKCMMF(Amountincrores) TRCMPU ERCMPU MRCMPU KCMMF TOTAL2010-11 -0.22 3.38 2.32 4.02 9.502011-12 -0.01 3.39 4.95 6.48 14.81


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organizations. We are very grateful to them.

We are also indebted to the Dairy Development Department, Government of Kerala for theirleadershipandsupport.WearegratifiedtothevariousGovernmentDepartmentsand organizations like Planning Board, Animal Husbandry Department, Dairy Farmers WelfareFundBoard,KeralaLivestockDevelopmentBoard,KeralaFeedsLtd.,LabourDepartment, Weights and Measures, Electrical Inspectorate, Factories and Boilers Inspectorate, Kerala Water Authority, Health Department, Kerala State Electricity Board, Sales Tax Department, Central and State Excise, Pollution Control Board, Co-operative Department, Climate Change and Development etc., for their continued co-operation.

We also acknowledge Federations of Karnataka, Maharashtra and Gujarat for the help intimeofneed.VariousprivatedairiesinTamilNadualsohelpedusintimelysupplyof milk. We thank them too.

Our member unions, Trivandrum, Ernakulam and Malabar are our backbone. We recognize them for their guidance, support and co-operation.

The advertising agencies, Press and media, Bankers, Insurers, Management Consultants, Suppliers, TransportContractors,Railway,Architects,Auditors, LegalAdvisors, andConstruction Contractors have been of great help to us in managing our growth and have been our partners in our success. The Board of Directors acknowledges their contribution and commits to continue and strengthen this faithful alliance in all time to come.

Milmadependson the efficiencyofourDistributors,Agents,Purchasing Institutionsand most important of all the patronage of our consumers, who have come to regard Milma brand as synonymous with quality and value. While thanking them for their support, we assure them that we shall strive endlessly to delight them. The Board of Directors thanks them for their continued support.

TheBoardofDirectorsexpressgratitudetotheofficersandstaffofourFederation,andthat of the Regional Unions for their continued determination, loyalty and constant effortsdevotedtothegrowthoftheorganization. LastbutnottheleasttheBoardofDirectors wishes to express thankfulness to all milk producers who are the backbone of ourorganizationfortheircontinuedconfidenceinusandthanktheeffortsofthestaffandBoard members of APCOS for their faith with us in the progress of the Organization.

On behalf of everyone at KCMMF, we want to thank you for your support and commitment to Milma. Your belief in this organisation has helped make Milma the leading brand in Kerala. We look forward to your continued support and best wishes to help take KCMMF to the next level on its growth journey.

On behalf of the Board of Directors

P.TGOPALAKURUP P.K.PATHAKIFS CHAIRMAN MANAGING DIRECTOR


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KERALA CO-OPERATIVE MILK MARKETING FEDERATION LIMITED

MILMA BHAVAN PATTOM THIRUVANANTHAPURAM - 695 004PROFIT & LOSS ACCOUNT FOR THE YEAR 2010-2011 & 2011-2012

(Provisional Subject to audit)(Amount in Rupees in lakhs)

INCOME Sch. No. 2010-11 2011-12

SALESMILK&PRODUCTS 11 6,153.67 8,382.22

SALEOFCATTLEFEED&OTHERS 12 14,609.84 16,564.41

OTHER INCOME 13 537.88 555.33

INTEREST&DIVIDEND 14 3.92 12.39

CLOSINGSTOCKS 15 432.97 414.86

TOTAL 21,738.28 25,929.21

EXPENDITURE

OPENING STOCKS 16 279.91 432.97

RAWMATERIALSCONSUMPTION 17 16,035.24 18,781.58

PAYMENTS&BENIFITSTOEMPLOYEES 18 1,478.82 2,035.66

MANUFACTURING EXPENSES 19 620.93 721.54

SELLING&DISTRIBUTION 20 1,666.67 1,855.39

ADMINISTRATION EXPENSES 21 304.43 332.69

TAXES & DUTIES 22 18.88 20.55

PACKINGMATERIALCONSUMED 23 557.04 651.56

INTEREST 24 217.40 158.32

DEPRECIATION 25 157.00 172.95

TOTAL 21,336.32 25,163.21

NET PROFIT BEFORE TAX 401.96 766.00

LESS: PROVISION FOR INCOMETAX NIL 118.00

PROFIT AFTER TAX 401.96 648.00


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SALES MILK & MILK PRODUCTS 11 2010-2011 2011-12 SALES-TONEDMILK(SACHET) 24.24 -SALES-HI-FATMILK 429.21 916.57SALES-DOUBLETONEDMILK 4,655.21 5,861.82SALES-GHEE 592.70 809.98SALES-SFM 68.72 90.41SALES-REFRESH 167.69 179.34SALES-SAMBARAM - -SALES-PEDA 0.20 5.33SALES-CURD 154.72 215.82SALEOFPACKEDDRINKINGWATER 10.75 19.36SALES-DAIRYWHITNER 46.50 283.59STOCK TRANSFER 3.73

TOTAL 6,153.67 8,382.22 SALEOFCATTLEFEED&OTHERS 12 SALE-CFAPCOS 11,280.69 12,583.10SALE-CFDEALERS 1,393.54 1,246.62SALE-CFDRDA/SLBP 1,767.50 2,520.54SALE-MILMAMIN 14.36 58.40SALE-CFGOVTFARMS 45.11 68.38SALE-CFOTHERS 5.50 11.14SALE-CFKVCS 60.94 43.40SALEOFCFGRAMAPANCHAYATH 17.37 32.83SALEOFCFtoSOCIETY-CREDIT 24.83 -

TOTAL 14,609.84 16,564.41 OTHER INCOME 13 FREIGHTCOLLECTEDONSALES 18.66 26.76RENT:STAFF QTRS. 0.50 0.42 OTHERRECEIPTS/RENT:PARLOUR 0.17 0.17PROCESSING CHARGES - - CONVERSIONCHARGES - -SALEOFOLDGUNNIES 62.48 56.39SALEOFSCRAP/OLDPL.BAG 9.85 15.47AGRICULTURALINCOME 0.05 0.18

SCHEDULES TO PROFIT & LOSS ACCOUNT FOR THE YEAR 2010-2011 & 2011-2012


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MISC. INCOME 1.19 5.68 SALEOFTENDERFORMS 1.16 1.39INSURANCECLAIMRECEIVED 1.25 2.59TECHNICALCONSULTANCY 17.15 -CONTRIBUTIONS FROM KCMMF UNITS 174.00 174.00 SERVICECHARGESFROMUNIONS 45.00 45.00RECEIPT - TRAINING CHARGES 11.51 10.83 RECOUPMENT OPERN. DEFICIT 38.12 31.51 COMPUTERCONSULTANCYCHARGES 13.21 12.84CFPRICEINTERVENTIONFUND 143.58 171.93 PRIOR PERIOD INCOME - 0.17

TOTAL 537.88 555.33 INTEREST&DIVIDEND 14 -INTEREST ON FD 0.99 3.55 INTEREST ON S.B.ACCOUNT 0.33 0.66 INTEREST ON SECURITY DEPOSIT - 0.31 INTEREST ON OTHER DEPOSITS 2.06 7.86 INTEREST TRADE DEBTORS 0.03 - INTERESTONINVESTMENTS 0.50 -INTERESTFROMVEHICLELOANETC 0.01 0.01

TOTAL 3.92 12.39 CLOSINGSTOCK 15 - -CLOSINGSTOCKFINISHEDGOODS 432.97 414.86OPENING STCK 16 - OPENING STOCK FINISHED GOODS 279.91 432.97 RAWMATERIALSCONSUMPTION 17 -MILKFROMSOCIETIES 889.22 3.35MILKFROMOTHERS 2,455.06 5,591.18MILKPOWDERCONSUMED 1,336.08 832.56BUTTEROILCONSUMED 60.08REFRESH CONSUMED 135.61 141.46 GHEE CONSUMED - 33.10 PEDA CONSUMED 0.21 0.71 CFRAWMATERIALCONSUMED 10,677.62 11,404.32SFM 4.62 5.66 DAIRY WHITNER 47.61 272.60


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CARRIAGEINWARDMILK 133.88 214.17INWARD FRT & PROC. CHARGES 180.49 102.27 STOCKTSFRIN-MILK 4.76 -RAWMAT.FORMILMAMIN 3.75 45.04PURCHASE - FINISHED FEED 92.30 116.34 PURCHASE OF PACKAGED DRINKING WATER 9.57 16.03 HOLIDAYWAGESLOADING/UNLOADINGWRKRS 4.38 2.79

TOTAL 16,035.24 18,781.58 PAYMENTS&BENEFITSTOEMPLOYEES 18 - -SALARIESTOMANAGERAILSTAFF 324.92 373.74WAGES TO WORKERS 634.06 779.38 STIPEND TO APPRENTICES 8.04 9.71 OVERTIME 16.67 19.36SLARYTOSTAFFONDEPUTATION 1.10 3.64NIGHT SHIFT WAGES 0.40 0.40 EXTRA WAGES 10.09 13.04 DAILYWAGES 3.13 4.18OTHERALLOWANCESTOEMPLOYEES 0.02 1.44SALARY-CONTRACTEMPLOYEES 7.87 13.50LABOURWELFAREFUND 0.04 0.04EMPLOYERS’CONTR.TOP.F 90.48 88.88CONTRIBUTION PENSION FUND 36.72 32.48 PF ADMINISTRATION CHARGE 11.46 11.67 D.L.ISCHEME 1.66 1.56EDLIADMINISTRATIONCHARGES 0.61 0.62BONUS 2.42 3.19 GRATUITY 28.28 15.11 EMPLOYERS’CONTR.TOE.S.I 14.97 18.80STICHING & FOOTWEAR 1.42 1.27 SUBSIDYTOEMPLOYEES 1.41 1.45FESTIVALALLOWANCE 3.88 6.25LEAVEENCASHMENT 60.26 62.04INCENTIVESTOEMPLOYEES 0.18 1.03GROUP GRATUITY INSURANCE 118.93 403.13 STAFFWELFAREEXPENSES 18.08 21.20


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PAYREVISIONARREARS 23.41 68.52CANTEEN 6.98 8.03 UNIFORM & WASHING 2.07 2.35 HRD EXPENSES 0.03 0.02 MEDICALINSURANCEPREMIUM 9.54 13.33PERFORMANCEINCENTIVE 25.73 27.56MD’SSALARY 13.62 17.72MEDICALREIMBURSEMENT 0.34 0.10CONTRBN.HEADLOADWORKERSWELFAREFUNDBOARD - 10.92

TOTAL 1,478.82 2,035.66 MANUFACTURING EXPENSES 19 - - STORES CONSUMPTION 115.65 136.70 POWER&ELECTRICITY 219.66 217.69FURNACEOIL&GENEXP. 147.86 214.40WATER FOR MANUFACTURING 1.10 0.77 GENERATOR EXPENSES 20.61 23.44 LAB.EXPENSES 7.22 14.04AGMARK ISI EXPENSES 1.94 2.78 LEASEANDRENT - 0.04REPAIRSELECTRICALINSTALL. 0.66 2.13REPAIRSPLANT&MACHINERY 44.31 51.63REPAIRSTOFACTORYBUILDING 2.71 11.24REPAIRS TO OTHER FACTORY ASSET - 0.22 FACTORYMAINTENANCE(GENERAL) 3.16 4.17R&MOTHERBUILDING 0.27 0.10R&MLABEQUIPMENTS 1.33 0.66INSURANCEPLANT&MACHRY 6.41 3.42INSURANCEVEHICLE 0.07 0.12INSURANCE STORES 1.36 1.20 INSURANCE CASH 0.06 0.11 INSURANCE OTHERS 0.18 - TAXES&LICENSES 3.87 5.02FREIGHT&HANDLING-INWARD 40.99 30.15PROCESSING CHARGES PAID - - MISC. MANUFACTURING EXPENSES 1.51 1.51

TOTAL 620.93 721.54


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SELLING&DISTRIBUTION 20 - -PACKING EXPENSES - 0.28 LOADING&FORWARDINGCHARGES 52.33 61.11CARRIAGE OUTWARDS 63.20 75.39 FUEL-DISTRIBUTIONVEHICLES 0.93 0.52REPAIRSDISTRIBUTIONVEHICLES 0.57 0.13CASH DISCOUNT TO UNIONS 39.77 - INCENTIVETOWHOLESALERS 20.56 28.83SPECIALDISCOUNT 29.50 14.69ADVERTISEMENT 5.63 20.50SALESPROMOTIONEXPENSE 4.74 39.28PAYMENT TO TRANSP.CONTRACTOR 663.00 713.79 SALESINCENTIVE-APCOSSTAFF 75.17 53.36MARKET RESEARCH - - DISCOUNT TO APCOS 557.25 687.48 DISCOUNTTODEALERS 101.83 97.54DISCOUNTTODRDA/SLBP 45.43 57.06DISCOUNTTOMILMAMIN 1.48 1.85DISCOUNT TO GRAMAPANCHAYATH 0.67 0.66 DISCOUNT TO OTHERS 4.61 2.92 TOTAL 1,666.67 1,855.39ADMINISTRATION EXPENSES 21 - - RENT-OFFICES 0.03 0.08 PRINTING & STATIONERY 8.31 13.12 POSTAGE&TELEGRAMS 2.53 2.83EPABX MAINTENECE 0.11 0.10 TELEPHONE:OFFICE&QTRS 6.54 7.29TELEX&FAXCHARGES 0.16 0.20MEMBERSHIP FEE & SUBSCRIPTION 0.11 0.01 SEMINAR,DELEGATEFEEETC. 2.63 0.35NEWSPAPERS&PERIODICALS 0.27 0.38LIBRARYBOOKS - 0.02LOCALCONVEYANCE 2.59 4.14TRAVELLINGEXPENSES 9.90 11.02VEH.MAINT(ADMN&MARKETING) 1.43 2.18FUELFORVEHICLES 6.42 7.01


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ADVERTISEMENTTENDER 3.37 3.68OFFICE MAINTENANCE 2.23 3.15 GARDENING EXPENSES 1.19 1.34 MISC.EXPENSES 1.79 2.26 SECURITY CHARGES 14.83 17.09 STATUTORY AUDIT FEE & EXP. 16.59 17.64 INTERNALAUDITFEE 0.05 1.14PROF.&LEGALFEES 1.12 4.93CONSULTANT’SFEES&EXPENSES 1.71 0.29COMPUTER MAINTENANCE EXPENSES 2.84 4.20 BANK CHARGES 3.58 1.79 T.A./D.A. TO AUDITORS 1.08 0.95 ELECTRICITYCHARGES 4.24 4.19INSURANCE,RENT, RATES,TAXES ETC 2.69 2.42 WATER CHARGES 0.39 0.31 REPAIRS & MANIT OTHER ASSET 0.98 2.10 TRAINING EXPENSES 0.08 0.20 RENT FOR HIRED GODOWN 0.73 0.33 TA TO STAFF ON DEPUTATION - - COMPUTER-SOFTWARE 0.40 - R&M QUARTERS 0.02 - R&MCOMPOUDWALL&OTHERBLDGS 3.97 12.11R&MGENERAL 1.30 0.90R & M OFFICE FURNITURE & FIXT. 0.01 - R&M OFFICE EQUIPMENTS 0.32 0.32 GEN.BODY MEETING EXPENSES 2.47 3.41 BORAD MEETING EXPENSES 0.55 0.73 OTHER MEETING EXPENSES 0.48 1.25 T.A. TO MANAGING DIRECTOR 2.49 2.95 SITTING FEES 0.09 0.22 HONOURARIUM TO CHAIRMAN 1.56 2.22 TA TO CHAIRMAN 1.01 1.53 ENTERTAINMENT EXP. 0.18 0.26 T.A. TO DIRECTORS 2.23 2.49 BAGCLEANING&BUNDL.CHARG 3.62 3.10H.O CONTRIBUTION 174.00 174.00


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HONARARIUMTOLECTURERS 0.48 0.42HOSTELMAINTENANCE 0.03 0.01VEHICLEHIRINGEXPENSES 1.78 2.64TRAINEES BOARDING CHARGES 1.98 2.00 TRAINEESLODGING 0.02 -TATOGUESTLECTURERS 0.06 0.05TA TO TRAINEES - 0.01 PLANTATION 0.07 0.04TEACHING AIDS - 0.03 OTHER EXPENSES - - ISO 9002 EXPENSES 0.40 0.64 PRIOR PERIOD EXPENDITURE 4.39 T.A. TO DIRECTORS - SEMINARS OUTSIDE STATES - 4.63

TOTAL 304.43 332.69 TAXES & DUTIES 22 - - SALESTAX 0.01 0.12EXCISE DUTY 0.09 1.42 SHORTCOLLECTIONOFSALETAX - 0.04SERVICETAX 18.78 18.97

TOTAL 18.88 20.55 PACKINGMATERIALCONSUMED 23 - -PACKING MAT. FOR FEED 323.38 352.29 PACKINGMAT.FORMILMAMIN 0.17 2.17ST.THREADLINING&PRINT.CHA 3.67 5.94PACKINGMATERIAL-MILK&PROD. 229.82 291.16

TOTAL 557.04 651.56 INTEREST 24 - - INTERESTONWORKINGCAPITAL 113.83 118.79INTERESTONNDDBLOAN 49.44 24.39INTEREST ON SOCIETY DEPOSIT 13.56 15.14 INTERESTONOTHERLOANS 40.57 -

TOTAL 217.40 158.32 DEPRECIATION 25 - DEPRECIATION 157.00 172.95 INCOME TAX PROVISIONFORTAXATION 26 118.00

TOTAL 118.00


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KERALA CO-OPERATIVE MILK MARKETING FEDERATION LIMITED

MILMA BHAVAN, PATTOM PALACE ( P.O)THIRUVANANTHAPURAM

Balance Sheet as on 31/03/2011 & 31/03/2012(Provisional subject to audit)

Particulars 31 - 3 - 2011 31 - 3 - 2012 (Rs.inLakhs) (Rs.inLakhs) Source of Funds Share Capital 211.69 211.69 Reserves & Surplus 1,371.27 1,654.24 Long-termloans 891.49 553.40Corpus fund for Milk Powder Plant 961.29 977.11 Total 3,435.74 3,396.44 Application of Funds Fixed Assets 1,190.01 957.52 Capital Work-in-Progress 155.78 185.97 Investments 20.50 20.50 CurrentAssets,Loans&Advances 4,677.74 6,265.41Less:CurrentLiabilities&Provisions 4,269.06 5,045.73Net Current Assets 408.68 1,219.68 ProfitandLossAccount 1,660.77 1,012.77

Total 3,435.74 3,396.44


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Schedules to Balance Sheet as on….

Particulars Sch No. 31 - 3 - 2011 31 - 3 - 2012 (Rs.inLakhs) (Rs.inLakhs)Share Capital 1 Shares of Rs.1000/- each 211.69 211.69Total 211.69 211.69 Reserves & Surplus 2 Grants from NDDB 484.87 400.72 Grants from Govt. 860.86 1,225.86 Special Capital Reserve 25.54 27.66

Total 1,371.27 1,654.24

Long-termloan 3 NDDBTermLoan 386.20 339.78OtherLoans 505.29 213.62

Total 891.49 553.40

Corpus Fund for MPF 4 961.29 977.11Fixed Assets (Net Block) 5 1190.01 957.52Capital Work-in-Progress 6 155.78 185.97Investments 7 Kerala Feeds - 200 Shares of Rs.10000/- each 20.00 20.00 KSCK&CAMSLtdKannur-2 Shares of Rs.25000/- each 0.50 0.50

Total 20.50 20.50

CurrentAssets,Loans&Advances 8 Inventories 1345.69 1468.89Sundry Debtors 581.08 918.47Loans&Advances 151.12 82.31Interunion balances/Interunit accounts 1220.75 350.13Contractors Balance 22.77 132.08Deposits 57.98 379.75Cash and Bank Balances 1298.35 2933.78

Total 4,677.74 6,265.41

CurrentLiabilites&Provisions 9 NDDB-SDC Special Fund - 2,696.34


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Creditors for goods supplied/others 1,527.89 873.75 Expenses Payable 138.50 311.07 Gratuity Payable 1.56 - EMD/SD 302.27 266.38 Outstanding to Employees/Misc recoveries 70.79 135.54 Outstanding liability payable 36.03 48.95 Income Tax 6.88 9.94 Sales tax/service tax 4.75 3.85 Employees PF 7.44 10.06 ESI 1.29 1.17 Audit cost payable - 4.27 Deposit from Societies 145.76 137.99 Bank-CC/OD - - Provision for exps. Objected 105.91 159.67 Other Provisions &Reserves 412.88 118.00 Others 1,507.11 268.75

Total 4,269.06 5,045.73

Profit and Loss Account 10 1,660.77 1,012.77

annual report of milma 2012

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