Annual Report of milma 2012

milma - The goodness Kerala Wakes upto

milma

Annual Report 2011-2012

Annual Report

milma

2011-12

Kerala Co-operative Milk Marketing Federation Ltd.

Thiruvananthapuram

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CONTENTS

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.

9.

Future Plans

Finance

2011-12

2.

Report

Board of Directors

Annual

1.

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. Profit and Loss Account for the year 2010 – 2011 & 2011 – 2012 (Provisional) with schedules

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Annual

Report

2011-12

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

Sri. P.T. Gopala Kurup



Sri. T. K. Manojkumar IAS



Sri. P.P. Gopinatha Pillai

Chairman, MRCMPU Ltd



Sri. Kallada Ramesh

Chairman, TRCMPU Ltd.



Sri. M.T.Jayan

Chairman, ERCMPU Ltd.



Sri. B.S.Khanna

General Manager, NDDB



Sri. S. Ayyappan Nair

Representative, TRCMPU Ltd.



Adv. S. Sadasivan Pillai

Representative, TRCMPU Ltd.



Sri. P.A. Balan Master

Representative, ERCMPU Ltd.



Sri. K.K.Jacob

Representative, ERCMPU Ltd.



Sri. K.N.Mohan



Smt. K.T.Sarojini

Chairman, KCMMF Principal Secretary (NORKA, AH &DD)

Sri George John

Jt. Secretary, Finance Department Government of Kerala



Managing Director

Sri. P. K. Pathak IFS

Report

Director, Dairy Development Dept.

Annual

Representative, MRCMPU Ltd.

2011-12 5

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milma KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD No.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

Report

2011-12

Notice is hereby given that the 39th meeting of the General body of the KCMMF will be held at KCMMF Head Office, Milma Bhavan, Pattom, Thiruvananthapuram at 11 AM on 22.08.2012 to transact the following business: 1. Approval for the notice and Agenda for the 39th meeting of the General Body of the KCMMF Ltd. 2. Confirmation of the minutes of the previous meeting and action taken. 3. Presidential Address. 4. Presentation of the Annual Report, Balance Sheet and Profit & Loss Account (provisional) for the year 2011-12 (period from 01.04.2011 to 31.03.2012) in respect of KCMMF Ltd. 5. Supplementary Budget for the year 2011-2012 6. Approval of the Budget for the year 2012-2013 covering the period from 01.04.2012 to 31.03.2013 in respect of KCMMF Ltd.

Annual

7. Audit Report for the year 2009-10. 8. Questions and Answers. 9. Resolution if any. 10. Writing off of a. 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 will have to be forwarded to this Office so as to reach on or before ------------------- at 5.00PM. Yours faithfully, Sd/MANAGING DIRECTOR By order of the Board

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Kerala Co-operative Milk Marketing Federation Ltd. Thiruvananthapuram Respected Members, It gives us immense happiness in welcoming you all to the 39th Annual General Body Meeting of KCMMF. On behalf of the Board of Directors of KCMMF Ltd. we are honored to present the Annual Report and the Financial Statement of our Federation for the year 2011-12.

Report 2011-12

Our organization performed exceptionally well in terms of growth and profitability by 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 a consolidated basis. Our ability to increase profitability in the face of strong operational headwinds was also significant. Our net profits grew by 112.6% to a tune of Rs. 648.00 Lakhs, (provisional) during the financial year 2011-12. The year 2011-12 was a respectable year 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.

Annual

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 significant role 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.

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, which reflected in the market increase on the sales. We conducted meeting with the Presidents and Secretaries of

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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 of milk daily. This is an increase of 16.24% over the pervious year, which is a great achievement. 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 sale per day reached 11,75,561 litres which is an increase of 6.96% over the previous year. This remarkable performance has reduced our dependence on outside states for milk. This thrust should serve as a stepping-stone for us to achieve self-sufficiency in milk production. The demand for milk is expected to increase significantly in the next 5 years as 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.

Annual

Report

2011-12

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 Table 1:PAID UP SHARE CAPITAL OF KCMMF

Share Capital in Lakhs

`.in Lakhs

TRCMPU

78.69

ERCMPU

30.67

MRCMPU

102.33

TOTAL

211.69

150 100 50 0

TRCMPU

ERCMPU MRCMPU

Fig. 1: Paid up Share Capital of KCMMF

NUMBER OF APCOS As on 31.03.12 the total number of APCOS functioning (both affiliated and non affiliated) are 3059. The Union wise break up is given below.

1065

MRCMPU ERCMPU TRCMPU

967 1027

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% over 6,73,030 litres per day of the previous year. The increase in procurement shows healthy trends and the farmer’s confidence in their produce. The average milk procured per day during the last two financial years is given below 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

Report

2010-11 2011-12

T RCMPU

ERCMPU

2011-12

450000 400000 350000 300000 250000 200000 150000 100000 50000 0

Annual



Av. Milk Procurement / Day

milma

MRCMPU

Regional Unions Fig.3: Average milk procurement per day MILK SALES The growth in sales has been impressive showing the consumers’ continued confidence in our brand. The average sale during the year was 11,75,561 litres showing an increase of 6.96% over the previous year. This growth is quite impressive compared with the 2.55% growth achieved in the previous year. The gap between supply and demand was 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)

Annual

Report

2011-12

4.11 4.68

2.96

4.19

1.88

1.76

TRCMPU

ERCMPU

Sales Procurement

MRCMPU

Fig. 4: Milk Procurement Vs Sales 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 efficient distribution 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: Table 4: SALES OF MILK PRODUCTS TRCMPU Products

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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 2010-11

2011-12

% Diff

GHEE (MT/Annum)

615

738

20.00

BUTTER (MT/Annum)

54

85

57.41

ICE-CREAM (Ltrs/Annum)

437208

524770

20.03

CURD SALES (Kgs/Annum)

4204376

4734320

12.60

SAMBHARAM (Packets/ Annum)

834531

825090

-1.13

2010-11

2011-12

% Diff

1779

2068

16.25

295806

464085

56.89

CURD (Kgs/Annum)

15418013

17089160

10.84

SAMBHARAM (Packets/ Annum)

8167240

9821890

20.26

MILMA PLUS (Bottles/ Annum)

275858

404355

46.58

Annual

2010-11

2011-12

% Diff

207

265

28.02

Report

Products

703384

845775

20.24

MRCMPU Products GHEE (MT/Annum) ICE-CREAM (Ltrs/Annum)

CPD Products GHEE (MT/Annum)

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.

2011-12

MILMA PLUS (Bottles/ Annum)

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, subsidy for demonstration plots, subsidy for cattle shed flooring, training support for Union 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.

Annual

Report

2011-12

TRCMPU Ltd. v Veterinary units functioning in various milk societies v Artificial Insemination centers in 20 societies v Implementation of Gosuraksha scheme v Fodder development scheme v Grant for Higher Education to children of loyal farmers v 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 farmers v Incentive for milk production and summer incentive v Revolving fund v Development schemes for increasing milk production ERCMPU Ltd. v v v v v v v v v v v v v v v

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Veterinary emergencies & camps once in a month in selected societies. Decentralised veterinary units and AI centers. Interest subsidy for cattle loans. Cattle insurance premium subsidy under Gosuraksha scheme. Subsidy for purchase of milking machines. Building grant to societies. Mediclaim insurance policy for farmers Group gratuity insurance scheme for society employees and their families. Subsidy for cattle shed construction /renovation in Idukki district under centrally sponsored scheme. Installation of BMC Supply of fodder seeds to selected farmers free of charge. Subsidy for training of Management Committee and staff of societies. Career guidance programme for the children of farmers & society staff. Subsidy for purchase of floor mats for cattle sheds. Subsidy for supply of bailed straw to farmers.

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v Supply to milk cans at subsidized rates to societies.

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, a flavored milk drink in five flavors has also become an attractive product and its sale has also increased considerably. There was no restriction in sale of milk during 201112, 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 annual turnover of CPD was higher by 11% than budgeted during 2011-12 and generated a profit of Rs.49.31 lakhs in 2011-12.

2011-12

CENTRAL PRODUCTS DAIRY (CPD), ALAPPUZHA

Report

UNITS UNDER KCMMF:

Annual

MRCMPU Ltd. 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, Committee members, AI Workers & VRPs and Farm Entrepreneurs followed by field visit to the Dairy, Cattle Feed Factory and breeding center/ fodder farm. v Subsidy for cattle shed from Union Fund v Cattle Insurance. v Awards for best farmers & APCOS. v Ksheera Karshaka Suraksha Padhathi v LIC Samoohya Suraksha Padhathi (for members of member APCOS) v LIC Janasree Bhima Yojana – (Age-18-59) v Group Insurance Scheme for JBY enrolled farmers v Mediclaim Insurance v Treatment aid for farmers suffering from fatal diseases v Scholarship to the children of farmers and Union staff v Building grant v Special Building grant to BMC Societies v Group Gratuity Insurance scheme

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 also enhanced with the installation of new Peda Vat along with adequate facilities for packing.

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Annual

Report

2011-12

Table 5: Sales of Milk and Other Products from CPD

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Product Toned & Double Toned Milk (included in TRCMPU sales)

Unit of 2010-11 2011-12 % Differ Revenue Measure- earned / ment Rs. lakhs

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

Mango Juice (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 to non-availability of sufficient milk, this factory did not operate in the reporting year. 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 maintain the quality and price of their feed which ultimately benefits the dairy farmers. 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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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 running near to 70% capacity. Amidst these limitations, we achieved a reasonable production at both Plants. The CFP Malampuzha generated a profit of Rs. 460.89 lakhs (provisional) in 2011-12 and CFP Pattanakkad was back in profit at 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: Table 6: PRODUCTION OF CATTLE FEED IN THE YEAR 2011-12 Capacity Utilization(%)

Pattanakkad

56834

63.15

Malampuzha

64840

72. 04

Total

121674

67.67

Units

APCOS Dealers Govt. Others Total 39778

5648

11771

335

57532

Malampuzha

52992

3880

8129

4

65005

Total

92,770

9,528 19,900

339 1,22,537

Others 0%

Dealers 8%

APCOS 76%

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 and sales figures of the current year compared to previous year are indicated below:

123000

121674

122000

2011-12

Pattanakkad

Govt. 16%

Report

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

Annual

Unit Qty (MT)

Production & Sales in MT

milma

122537

121000 120000 119000 118000 117000

118387

Production Sales

116854

116000 115000 114000

2010-11

2011-12 Year

Fig 6: PRODUCTION & SALES OF CATTLE FEED

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MILMA TRAINING CENTRE, TRISSUR

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, which in turn improved their total functional effectiveness and efficiency. The training 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 identified based 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.

Report

KCMMF HEADQUARTERS Various departments at the headquarters provide support and gives regular advises to Regional Unions for continual improvement. Some of the activities of the departments during the year are listed below.

Annual

2011-12

The Federation had established the Milma Training centre to cater to the training needs of various functionaries of Primary APCOS. Various training programmes are offered to equip the hands of the farmers themselves with the basic essentials of the fundamentals of cooperatives. The Training Centre conducts courses on a “no profit – no loss” basis with the support of the Regional Unions.

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. The officials of the Federation visit 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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MILK PROCUREMENT & INPUT (P & I)

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action. The Federation also organized meetings of P & I staff of the Regional Milk Unions, officials of APCOS and of dealers of cattle feed at various intervals. This also helped as a mechanism 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.

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.

2011-12

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.

Report

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.

Annual

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.

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 Study was carried out by Dr.N.R.Unnithan, former MD of KLD Board and ConsultantDairy & Livestock, Dr A.K.Joseph (former Senior General Manager, NDDB) and Prof Koshy.P.Mathew (former HOD Economics, Kerala University) in the year 2010 and submitted its report in February 2011. The Board of Directors deliberated upon the findings and recommendations of the report and 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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of Board of Directors of KCMMF approached the Hon’ble High Court of Kerala and filed a 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

Annual

Report

2011-12

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

The selling price of milk before and after revision is given below: Milk Variant/ Quality

Present Selling Price/Rs. per Ltr

evised Selling RPrice/Rs. per Ltr

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 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 / Per day (LPD)

260601

121600

67901

450102

Milk Reconstituted (Litres)

7779855

3979150

3066002

14825007

21256

10872

8377

40505

103159724

48484919

27917815

179562458

281857

132472

76278

490607

Avg / Per day (LPD) Total Deficit Management Avg / Per day (LPD)

PURCHASE

2011-12

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 consisting of the Chief executives of the Federation and Regional milk unions finalizes the 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 due procedures subject to approval of the Board. Various packing materials are also sourced in the same manner.

Report

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 the Animal Husbandry Department in 7 districts of Kerala under the Special Livestock Breeding Programme (SLBP).

Annual

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:

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 for finalizing the purchases of raw materials. The vendor base has expanded over the years 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 was at manageable levels and we could procure sufficient good quality raw materials for maintaining 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, efficient and qualified personnel in its units and Head Office. Overall we have a total

19

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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 standards besides framing of common service rules, finalization of long-term settlement, bonus etc. Labour relationship remains good, which is one of our major strength, which is 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 notified the Recruitment Rule for recruitment in KCMMF. Accordingly the appointments at various level in KCMMF has been entrusted to PSC and appointments are expected to take place soon.

Annual

Report

2011-12

INFORMATION TECHNOLOGY (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 and dairy sector was also not an exception. The fierce competition being experienced in 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 for Dairy & Cattle Feed operations. During the year, by setting up Virtual Private Network (VPN) between KCMMF Head Office and Central Products Dairy Alappuzha, Cattle Feed Plants at Pattanakkad and Malampuzha, significant improvement was achieved in managing Servers, Databases and applications remotely from KCMMF Head Office computers. In line with the different dimensions 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 Head Office, Central Products Dairy Alappuzha, Cattle Feed Plant Pattanakkad and Cattle 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

20

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milma

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, physical implementation of the project, monitoring the progress, Liaisoning with 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. The following infrastructure developmental activities were taken up with the financial assistance 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

2. Cattle Feed Plant, Malampuzha

The project work related to the expansion and products manufacturing facilities commenced in the reporting year. Various dairy equipments were ordered. The tender process for purchase of remaining equipments and civil works are in progress. This project is financed by State Govt. under assistance to Public Sector Undertakings for which Govt. has sanctioned an amount of Rs.215.00 lakhs in the State budget 2011-12 plan fund. Renovation of canteen and roofing over the existing RCC roof terrace were also completed during 2011-12.

2011-12

3. Central Products Dairy, Alappuzha

Report

The civil work for the new raw material godown and allied works are in progress. The mechanical works for the conveying system was awarded. This project is financed by the 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. seeking financial assistance, which is under consideration in the State budget 2012-13 plan fund.

Annual

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 of Rs.121.45 lakhs was submitted to the State Govt. seeking financial assistance, which is under consideration in the State budget 2012-13 plan fund.

MRCMPU PROJECTS 1. Kozhikode Dairy The civil works for the expansion of laboratory, curd process block, administrative block etc. were completed during the financial year. Further the civil works for the expansion of Kozhikode Dairy was started during the financial year with an outlay of Rs.115.00 lakhs.

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milma

2. Ice-cream Plant at Kozhikode Dairy The civil works for the Ice-cream Plant is in progress. The tender process for floating electrical works and structural glazing work is in progress. The total outlay of this project is Rs.275.00 lakhs. 3. Central Products Dairy, Naduvattom Civil works for construction of Godown Block and Structural Roofing over first floor of old plant building at Naduvattom Products Dairy, Kozhikode Dist. was completed in the financial year with an outlay of Rs.40.00 lakhs. The tender for revamping and expansion of existing ETP at Naduvattom Dairy at an outlay of Rs.22.00 lakhs was floated. 4. Palakkad Dairy, Kallepully, Palakkad.

Annual

Report

2011-12

Project works for the expansion of Palakkad Dairy commenced during the financial year 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 is Rs.200 lakhs. This project is financed by the State Government under Assistance to Public 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. The construction activities for the 10000 LPD capacity new milk chilling plant at Vadakara completed. 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 in the financial year and is in progress. The electrical and mechanical tenders are under preparation. This project is financed by State Government under Assistance to Public sector undertakings for which Govt. has sanctioned an amount of Rs.100 lakhs to MRCMPU under plan fund.

22

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milma

9. Wayanad Dairy. The civil works for the expansion of Wayanad Dairy under RSVY commenced during the financial year and the work is in progress. The tender process for electrical, 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 purchase of equipment started in the financial year. Total outlay of the above project is Rs.835.00 lakhs. This project is partly financed by Central Govt. under NMPS – RKVY Scheme. AUDIT

FINANCE

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

% Increase over the 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%

2011-12

Year CFP (P) CFP (M) CPD Total

Report

During the year 2011-12, KCMMF achieved a turnover of Rs.249.47 (provisional) crores in the as against Rs.207.63 crores during the previous year. The net profit of the reporting year is Rs. 854.91 lakhs (provisional).

Annual

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 of KCMMF for the year 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.

249.47 207.63

2010-11

2011-12

Fig. 7: Turnover of KCMMF Units

23

milma - The goodness Kerala Wakes upto

The turnover and the profit/loss of the Federation and the Unions for the financial year 2011-12 in comparison with previous year are given under: 2010-11 2011-12 % Diff

Table 10: Turnover of KCMMF (Amount in crores) TRCMPU ERCMPU MRCMPU KCMMF 389.53 273.62 488.25 207.63 494.74 323.02 556.87 249.47 27.01% 18.05% 29.60% 20.15%

TOTAL 1359.03 1624.10 19.50

Table 11: Profit/Loss of KCMMF (Amount in crores)

Annual

Report

2011-12



TRCMPU

ERCMPU

MRCMPU

KCMMF

TOTAL

2010-11

-0.22

3.38

2.32

4.02

9.50

2011-12

-0.01

3.39

4.95

6.48

14.81

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 maintain our market leadership. Being self sufficient in milk production will continue to 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. We are obliged to the Government of India for the financial support received for various schemes. We are also grateful to the Government of Kerala for all the financial support and co-operation extended to our organization from time to time. The National Dairy Development Board has continued to play a significant role in our growth and development. The National Co-operative Dairy Federation of India has been providing us with invaluable support in co-ordination with other agencies and

24

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milma

organizations. We are very grateful to them. We are also indebted to the Dairy Development Department, Government of Kerala for their leadership and support. We are gratified to the various Government Departments and organizations like Planning Board, Animal Husbandry Department, Dairy Farmers Welfare Fund Board, Kerala Livestock Development Board, Kerala Feeds Ltd., Labour Department, 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 in time of need. Various private dairies in Tamil Nadu also helped us in timely supply of 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.

Annual

The advertising agencies, Press and media, Bankers, Insurers, Management Consultants, Suppliers, Transport Contractors, Railway, Architects, Auditors, Legal Advisors, and Construction 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. Milma depends on the efficiency of our Distributors, Agents, Purchasing Institutions and 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.

Report

The Board of Directors express gratitude to the officers and staff of our Federation, and that of the Regional Unions for their continued determination, loyalty and constant efforts devoted to the growth of the organization. Last but not the least the Board of Directors wishes to express thankfulness to all milk producers who are the backbone of our organization for their continued confidence in us and thank the efforts of the staff and Board members of APCOS for their faith with us in the progress of the Organization.

2011-12

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.T GOPALA KURUP CHAIRMAN

P. K. PATHAK IFS MANAGING DIRECTOR

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KERALA CO-OPERATIVE MILK MARKETING FEDERATION LIMITED MILMA BHAVAN PATTOM THIRUVANANTHAPURAM - 695 004 PROFIT & LOSS ACCOUNT FOR THE YEAR 2010-2011 & 2011-2012 (Provisional Subject to audit) (Amount in Rupees in lakhs)

Annual

Report

2011-12

INCOME

Sch. No.

2010-11

2011-12

SALES MILK & PRODUCTS

11

6,153.67

8,382.22

SALE OF CATTLE FEED & OTHERS

12

14,609.84

16,564.41

OTHER INCOME

13

537.88

555.33

INTEREST & DIVIDEND

14

3.92

12.39

CLOSING STOCKS

15

432.97

414.86

21,738.28

25,929.21

TOTAL

EXPENDITURE OPENING STOCKS

16

279.91

432.97

RAW MATERIALS CONSUMPTION

17

16,035.24

18,781.58

PAYMENTS&BENIFITS TO EMPLOYEES

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

PACKING MATERIAL CONSUMED

23

557.04

651.56

INTEREST

24

217.40

158.32

DEPRECIATION

25

157.00

172.95

21,336.32

25,163.21

NET PROFIT BEFORE TAX

401.96

766.00

LESS: PROVISION FOR INCOMETAX

NIL

118.00

401.96

648.00

TOTAL

26

PROFIT AFTER TAX

milma

milma - The goodness Kerala Wakes upto

milma

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

11

2010-2011

SALES - TONED MILK(SACHET)



24.24

SALES - HI-FAT MILK



429.21

916.57

SALES- DOUBLE TONED MILK



4,655.21

5,861.82

SALES - GHEE



592.70

809.98

SALES - SFM



68.72

90.41

SALES - REFRESH



167.69

179.34

SALES - SAMBARAM



SALES - PEDA



0.20

5.33

SALES - CURD



154.72

215.82

SALE OF PACKED DRINKING WATER



10.75

19.36

SALES - DAIRY WHITNER



46.50

283.59

STOCK TRANSFER

3.73

TOTAL

6,153.67

-

-

8,382.22

SALE - CF APCOS



11,280.69

12,583.10

SALE - CF DEALERS



1,393.54

1,246.62

SALE - CF DRDA/SLBP



1,767.50

2,520.54

SALE - MILMAMIN



14.36

58.40

SALE - CF GOVT FARMS



45.11

68.38

SALE - CF OTHERS



5.50

11.14

SALE - CF KVCS



60.94

43.40

SALE OF CF GRAMAPANCHAYATH



17.37

32.83

SALE OF CF to SOCIETY -CREDIT



24.83

TOTAL

14,609.84

OTHER INCOME FREIGHT COLLECTED ON SALES

-

2011-12



Report

12

Annual

SALE OF CATTLE FEED & OTHERS

-

2011-12

16,564.41

13

18.66

26.76

RENT:STAFF QTRS.

0.50

0.42

OTHER RECEIPTS/RENT:PARLOUR

0.17

0.17



PROCESSING CHARGES

-

-

CONVERSION CHARGES



-

-

SALE OF OLD GUNNIES



62.48

56.39

SALE OF SCRAP/OLD PL.BAG



9.85

15.47

AGRICULTURAL INCOME



0.05

0.18

27

milma - The goodness Kerala Wakes upto

milma MISC. INCOME

1.19

5.68

SALE OF TENDER FORMS



1.16

1.39

INSURANCE CLAIM RECEIVED



1.25

2.59

TECHNICAL CONSULTANCY



17.15

CONTRIBUTIONS FROM KCMMF UNITS

174.00

174.00



45.00

45.00

RECEIPT - TRAINING CHARGES

11.51

10.83

RECOUPMENT OPERN. DEFICIT

38.12

31.51

COMPUTER CONSULTANCY CHARGES



13.21

12.84

CF PRICE INTERVENTION FUND



143.58

171.93

SERVICE CHARGES FROM UNIONS

PRIOR PERIOD INCOME

Annual

Report

2011-12

TOTAL INTEREST & DIVIDEND

537.88

0.17 555.33

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

-

INTEREST ON INVESTMENTS



0.50

-

INTEREST FROM VEHICLE LOAN ETC



0.01

0.01

TOTAL

3.92

12.39

CLOSING STOCK CLOSING STOCK FINISHED GOODS OPENING STCK

15

- 414.86

16

-

OPENING STOCK FINISHED GOODS RAW MATERIALS CONSUMPTION

- 432.97

17

279.91

432.97

-

MILK FROM SOCIETIES



889.22

3.35

MILK FROM OTHERS



2,455.06

5,591.18

MILK POWDER CONSUMED



1,336.08

832.56

BUTTER OIL CONSUMED



60.08

REFRESH CONSUMED

135.61

GHEE CONSUMED PEDA CONSUMED

-

141.46 33.10

0.21

0.71



10,677.62

11,404.32

SFM

4.62

5.66

DAIRY WHITNER

47.61

272.60

CF RAW MATERIAL CONSUMED

28

-

-

milma - The goodness Kerala Wakes upto

milma CARRIAGE INWARD MILK



133.88

214.17

INWARD FRT & PROC. CHARGES

180.49

102.27

STOCK TSFR IN - MILK



4.76

RAW MAT. FOR MILMAMIN



3.75

45.04

PURCHASE - FINISHED FEED

92.30

116.34

PURCHASE OF PACKAGED DRINKING WATER

9.57

16.03

HOLIDAY WAGES LOADING/ UNLOADING WRKRS



4.38

2.79

TOTAL

16,035.24

18,781.58

PAYMENTS&BENEFITS TO EMPLOYEES SALARIES TO MANAGERAIL STAFF

18

-

-

-

324.92

373.74

WAGES TO WORKERS

634.06

779.38

STIPEND TO APPRENTICES

8.04

9.71



16.67

19.36

SLARY TO STAFF ON DEPUTATION



1.10

3.64

NIGHT SHIFT WAGES

0.40

0.40

EXTRA WAGES

10.09

13.04



3.13

4.18

OTHER ALLOWANCES TO EMPLOYEES



0.02

1.44

SALARY - CONTRACT EMPLOYEES



7.87

13.50

LABOUR WELFARE FUND



0.04

0.04

EMPLOYERS’CONTR.TO P.F



90.48

88.88

CONTRIBUTION PENSION FUND

36.72

32.48

PF ADMINISTRATION CHARGE

11.46

11.67

D.L.I SCHEME



1.66

1.56

EDLI ADMINISTRATION CHARGES



0.61

0.62

BONUS

2.42

3.19

GRATUITY

28.28

15.11

EMPLOYERS’CONTR.TO E.S.I



14.97

18.80

STICHING & FOOTWEAR

1.42

1.27

SUBSIDY TO EMPLOYEES



1.41

1.45

FESTIVAL ALLOWANCE



3.88

6.25

LEAVE ENCASHMENT



60.26

62.04

INCENTIVES TO EMPLOYEES



0.18

1.03

GROUP GRATUITY INSURANCE

118.93

403.13

18.08

21.20

STAFF WELFARE EXPENSES



2011-12

DAILY WAGES

Report

OVERTIME

Annual



29

milma - The goodness Kerala Wakes upto

milma PAY REVISION ARREARS



23.41

68.52

CANTEEN

6.98

8.03

UNIFORM & WASHING

2.07

2.35

HRD EXPENSES

0.03

0.02

MEDICAL INSURANCE PREMIUM



9.54

13.33

PERFORMANCE INCENTIVE



25.73

27.56

MD’S SALARY



13.62

17.72

MEDICAL REIMBURSEMENT



0.34

0.10

CONTRBN.HEADLOAD WORKERS WELFARE FUND BOARD



TOTAL

-

2,035.66 -

115.65

136.70

POWER & ELECTRICITY



219.66

217.69

FURNACE OIL & GEN EXP.



147.86

214.40

WATER FOR MANUFACTURING

1.10

0.77

GENERATOR EXPENSES

20.61

23.44



7.22

14.04

AGMARK ISI EXPENSES

1.94

2.78

Annual

STORES CONSUMPTION

2011-12

19

1,478.82

10.92

Report

MANUFACTURING EXPENSES

-

LAB. EXPENSES LEASE AND RENT



REPAIRS ELECTRICAL INSTALL.



0.66

2.13

REPAIRS PLANT & MACHINERY



44.31

51.63

REPAIRS TO FACTORY BUILDING



2.71

11.24

REPAIRS TO OTHER FACTORY ASSET

-

0.04

0.22

FACTORY MAINTENANCE(GENERAL)



3.16

4.17

R & M OTHER BUILDING



0.27

0.10

R&M LAB EQUIPMENTS



1.33

0.66

INSURANCE PLANT & MACHRY



6.41

3.42

INSURANCE VEHICLE



0.07

0.12

INSURANCE STORES

1.36

1.20

INSURANCE CASH

0.06

0.11

INSURANCE OTHERS

0.18

-

TAXES & LICENSES



3.87

5.02

FREIGHT & HANDLING -INWARD



40.99

30.15

PROCESSING CHARGES PAID

30

-

-

-

MISC. MANUFACTURING EXPENSES

1.51

1.51

TOTAL

620.93

721.54

milma - The goodness Kerala Wakes upto

milma SELLING & DISTRIBUTION

20

-

PACKING EXPENSES

-

LOADING & FORWARDING CHARGES

- 0.28



52.33

61.11

CARRIAGE OUTWARDS

63.20

75.39



0.93

0.52

REPAIRS DISTRIBUTION VEHICLES



0.57

0.13

CASH DISCOUNT TO UNIONS

39.77

-

INCENTIVE TO WHOLESALERS



20.56

28.83

SPECIAL DISCOUNT



29.50

14.69

ADVERTISEMENT



5.63

20.50

SALES PROMOTION EXPENSE



4.74

39.28

PAYMENT TO TRANSP.CONTRACTOR

663.00

713.79

75.17

53.36

SALES INCENTIVE-APCOS STAFF



MARKET RESEARCH

-

-

557.25

687.48

DISCOUNT TO DEALERS



101.83

97.54

DISCOUNT TO DRDA/SLBP



45.43

57.06

DISCOUNT TO MILMAMIN



1.48

1.85

DISCOUNT TO GRAMAPANCHAYATH

0.67

0.66

DISCOUNT TO OTHERS

4.61

2.92

1,666.67

1,855.39

TOTAL

21

-

-

RENT-OFFICES

0.03

0.08

PRINTING & STATIONERY

8.31

13.12

POSTAGE & TELEGRAMS



2.53

2.83

EPABX MAINTENECE

0.11

0.10

TELEPHONE:OFFICE & QTRS



6.54

7.29

TELEX & FAX CHARGES



0.16

0.20

MEMBERSHIP FEE & SUBSCRIPTION

0.11

0.01

SEMINAR, DELEGATE FEE ETC.



2.63

0.35

NEWS PAPERS & PERIODICALS



0.27

0.38

LIBRARY BOOKS



LOCAL CONVEYANCE



2.59

4.14

TRAVELLING EXPENSES



9.90

11.02

VEH.MAINT (ADMN & MARKETING)



1.43

2.18

FUEL FOR VEHICLES



6.42

7.01

-

2011-12

ADMINISTRATION EXPENSES



Report

DISCOUNT TO APCOS

Annual

FUEL - DISTRIBUTION VEHICLES

0.02

31

milma - The goodness Kerala Wakes upto



3.37

3.68

OFFICE 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



0.05

1.14

PROF. & LEGAL FEES



1.12

4.93

CONSULTANT’S FEES & EXPENSES



1.71

0.29

COMPUTER MAINTENANCE EXPENSES

2.84

4.20

BANK CHARGES

3.58

1.79

T.A./D.A. TO AUDITORS

1.08

0.95

ELECTRICITY CHARGES



4.24

4.19

INSURANCE,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

Report

INTERNAL AUDIT FEE

TA TO STAFF ON DEPUTATION COMPUTER-SOFTWARE

0.40

-

R&M QUARTERS

0.02

-

R&M COMPOUD WALL & OTHER BLDGS



3.97

12.11

Annual

2011-12

ADVERTISEMENT TENDER

R&M GENERAL



1.30

0.90

R & 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

BAG CLEANING &BUNDL. CHARG



3.62

3.10

H.O CONTRIBUTION

174.00

174.00

32

-

-

milma

milma - The goodness Kerala Wakes upto

milma

HONARARIUM TO LECTURERS



0.48

0.42

HOSTEL MAINTENANCE



0.03

0.01

VEHICLE HIRING EXPENSES



1.78

2.64

TRAINEES BOARDING CHARGES

1.98

2.00

TRAINEES LODGING



0.02

TA TO GUEST LECTURERS



0.06

TA TO TRAINEES PLANTATION



- 0.07

- 0.05 0.01 0.04

TEACHING AIDS

-

0.03

OTHER EXPENSES

-

-

ISO 9002 EXPENSES

0.40

PRIOR PERIOD EXPENDITURE

4.39

0.64

T.A. TO DIRECTORS - SEMINARS TOTAL TAXES & DUTIES SALES TAX

22

- 304.43 -

4.63 332.69 -



0.01

0.12

EXCISE DUTY

0.09

1.42



SERVICE TAX



18.78

18.97

TOTAL

18.88

20.55

PACKING MATERIAL CONSUMED

23

-

0.04

-

323.38

352.29

PACKING MAT. FOR MILMAMIN



0.17

2.17

ST.THREADLINING & PRINT. CHA



3.67

5.94

PACKING MATERIAL-MILK &PROD.



229.82

291.16

TOTAL

557.04

651.56

INTEREST

24

-

-

INTEREST ON WORKING CAPITAL



113.83

118.79

INTEREST ON NDDB LOAN



49.44

24.39

INTEREST ON SOCIETY DEPOSIT

13.56

15.14

INTEREST ON OTHER LOANS



40.57

TOTAL

217.40

158.32

25

-

DEPRECIATION

DEPRECIATION

157.00

2011-12

PACKING MAT. FOR FEED

-

Report

SHORT COLLECTION OF SALE TAX

Annual

OUTSIDE STATES

-

172.95

INCOME TAX PROVISION FOR TAXATION

26



118.00

TOTAL

118.00

33

milma - The goodness Kerala Wakes upto

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.in Lakhs) (Rs.in Lakhs)

Source of Funds

Annual

Report

2011-12

Share Capital

211.69

211.69

1,371.27

1,654.24

Long-term loans

891.49

553.40

Corpus fund for Milk Powder Plant

961.29

977.11

3,435.74

3,396.44

Reserves & Surplus

Total

Application of Funds Fixed Assets

1,190.01

957.52

155.78

185.97

20.50

20.50

Current Assets, Loans & Advances

4,677.74

6,265.41

Less: Current Liabilities & Provisions

4,269.06

5,045.73

408.68

1,219.68

1,660.77

1,012.77

3,435.74

3,396.44

Capital Work-in-Progress Investments

Net Current Assets Profit and Loss Account Total

34

milma

milma - The goodness Kerala Wakes upto

milma Schedules to Balance Sheet as on…. Particulars Sch No. 31 - 3 - 2011 31 - 3 - 2012 (Rs.in Lakhs) (Rs.in Lakhs) Share Capital 1 Shares of Rs.1000/- each 211.69 211.69 Total 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

3

386.20 505.29

339.78 213.62

Total

891.49

553.40

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

977.11 957.52 185.97

Long-term loan NDDB Term Loan Other Loans

20.00 0.50

Total

20.50

20.50

Current Assets, Loans & Advances 8 Inventories Sundry Debtors Loans & Advances Interunion balances/Interunit accounts Contractors Balance Deposits Cash and Bank Balances

1345.69 581.08 151.12 1220.75 22.77 57.98 1298.35

1468.89 918.47 82.31 350.13 132.08 379.75 2933.78

Total

4,677.74

6,265.41

Current Liabilites & Provisions 9 NDDB-SDC Special Fund

-

2011-12

1,654.24

Report

1,371.27

Annual

Total

2,696.34

35

milma - The goodness Kerala Wakes upto

Annual

Report

2011-12

milma

36

Creditors for goods supplied/others Expenses Payable Gratuity Payable EMD/SD Outstanding to Employees/Misc recoveries Outstanding liability payable Income Tax Sales tax/service tax Employees PF ESI Audit cost payable Deposit from Societies Bank-CC/OD Provision for exps. Objected Other Provisions &Reserves Others

1,527.89 138.50 1.56 302.27

873.75 311.07 266.38

70.79 36.03 6.88 4.75 7.44 1.29 - 145.76 - 105.91 412.88 1,507.11

135.54 48.95 9.94 3.85 10.06 1.17 4.27 137.99 159.67 118.00 268.75

Total

4,269.06

5,045.73

Profit and Loss Account

1,660.77

1,012.77

10