milma - The goodness Kerala Wakes upto

milma

Annual Report
2011-2012

Annual
milma

Report
2011-12

Kerala Co-operative Milk Marketing Federation Ltd.

Thiruvananthapuram

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CONTENTS

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

Annual
B. Cattle Feed Plant, Pattanakkad & Malampuzha
C. Milma Training Centre, Trissur
8. Divisions at KCMMF Headquarters
A. Information Technology

Report
B. Purchase
C. Quality Control
D. Milk Procurement & Input
E. Marketing

2011-12
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. Profit and Loss Account for the year 2010 2011 & 2011 2012
(Provisional) with schedules

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2011-12
Report
Annual

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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. 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.

Annual
Sri. P.A. Balan Master Representative, ERCMPU Ltd.
Sri. K.K.Jacob Representative, ERCMPU Ltd.
Sri. K.N.Mohan Representative, MRCMPU Ltd.
Smt. K.T.Sarojini Director, Dairy Development Dept.

Report
Sri George John Jt. Secretary, Finance Department
Government of Kerala
Sri. P. K. Pathak IFS Managing Director

2011-12

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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

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
2011-12

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.
Report

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.
7. Audit Report for the year 2009-10.
Annual

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.
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

Annual
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

Report
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.
Our organization performed exceptionally well in terms of growth and profitability
by capturing opportunities and executing on the ground. Business demand rose steadily

2011-12
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.
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.
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

2011-12

Table 1:PAID UP SHARE CAPITAL

Share Capital in Lakhs
OF KCMMF

`.in Lakhs
150
Report

TRCMPU 78.69
100
ERCMPU 30.67
50
MRCMPU 102.33
0
TOTAL 211.69 TRCMPU ERCMPU MRCMPU
Annual

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.

MRCMPU 1065

ERCMPU 967

TRCMPU 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 farmers 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

Annual
MRCMPU 3,66,244 4,19,053 14.42
Total 6,73,030 7,82,352 16.24

Report
450000
Av. Milk Procurement / Day

400000
350000
300000

2011-12
250000 2010-11
200000
2011-12
150000
100000
50000
0
T RCMPU ERCMPU 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)

4.11 Sales
2011-12

4.68 Procurement
2.96
4.19
1.88 1.76

TRCMPU ERCMPU MRCMPU

Fig. 4: Milk Procurement Vs Sales

Report

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
Annual

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 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
ICE-CREAM (Ltrs/Annum) 437208 524770 20.03
CURD SALES (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
ICE-CREAM (Ltrs/Annum) 295806 464085 56.89

Annual
CURD (Kgs/Annum) 15418013 17089160 10.84
SAMBHARAM (Packets/ Annum) 8167240 9821890 20.26
MILMA PLUS (Bottles/ Annum) 275858 404355 46.58

Report
CPD

Products 2010-11 2011-12 % Diff

GHEE (MT/Annum) 207 265 28.02

2011-12
MILMA PLUS (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,
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.
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
2011-12

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
Report

v Revolving fund
v Development schemes for increasing milk production
ERCMPU Ltd.
v Veterinary emergencies & camps once in a month in selected societies.
Annual

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 BMC
v 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 Subsidy for purchase of floor mats for cattle sheds.
v Subsidy for supply of bailed straw to farmers.

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v Supply to milk cans at subsidized rates to societies.
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)

Annual
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

Report
v Special Building grant to BMC Societies
v Group Gratuity Insurance scheme
UNITS UNDER KCMMF:
CENTRAL PRODUCTS DAIRY (CPD), ALAPPUZHA

2011-12
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 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
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.
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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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
TRCMPU sales) 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
2011-12

*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.
Report

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
Annual

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

Unit Qty (MT) Capacity

Utilization(%)

Annual
Pattanakkad 56834 63.15
Malampuzha 64840 72. 04
Total 121674 67.67

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

Report
Others
Govt.
0%
16%
Units APCOS Dealers Govt. Others Total Dealers
8%
Pattanakkad 39778 5648 11771 335 57532
Malampuzha 52992 3880 8129 4 65005

2011-12
APCOS
Total 92,770 9,528 19,900 339 1,22,537 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 122537
122000 121674
Production & Sales in MT

121000
120000
119000 118387 Production
118000 Sales
116854
117000
116000
115000
114000
2010-11 2011-12 Fig 6: PRODUCTION & SALES
Year OF CATTLE FEED

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MILMA TRAINING CENTRE, TRISSUR
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.
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
2011-12

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
Report

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.
MILK PROCUREMENT & INPUT (P & I)
The Regional Milk Unions of the Federation provide various inputs for assisting
Annual

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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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.
Complaints from Consumers 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

Annual
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

Report
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.

2011-12
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
Study was carried out by Dr.N.R.Unnithan, former MD of KLD Board and Consultant-
Dairy & 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 Honble 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 farmers cooperative.
After long arguments in the court, the Honble 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
2011-12

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:
Report

Milk Variant/ Quality Present Selling evised Selling

Price/Rs. per Ltr RPrice/Rs. per Ltr
Double Toned Milk
(1.5% Fat & 9.0% SNF) Rs.22.00 Rs.27.00
Annual

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
Avg / Per day (LPD) 21256 10872 8377 40505
Total Deficit Management 103159724 48484919 27917815 179562458
Avg / Per day (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

Annual
(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
the Animal Husbandry Department in 7 districts of Kerala under the Special Livestock

Report
Breeding Programme (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

2011-12
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.
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

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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.
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
2011-12

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 [Milmas Integrated Information System]
Report

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--vis other State Federations to accomplish
100% in-house developed and fully automated IT solutions for Dairy & Cattle Feed
operations.
Annual

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
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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, 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
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.

Annual
2. Cattle Feed Plant, Malampuzha
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.

Report
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.

2011-12
3. Central Products Dairy, Alappuzha
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.
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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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.
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.
2011-12

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.
Report

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.
Annual

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.

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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
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

Annual
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.
FINANCE
During the year 2011-12, KCMMF achieved a turnover of Rs.249.47 (provisional) crores

Report
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).
Table 9: Turnover of KCMMF Units (Amount in lakhs)
% Increase
over the

2011-12
Year 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%

249.47
207.63

2010-11 2011-12

Fig. 7: Turnover of KCMMF Units

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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:

Table 10: Turnover of KCMMF (Amount in crores)

TRCMPU ERCMPU MRCMPU KCMMF TOTAL
2010-11 389.53 273.62 488.25 207.63 1359.03
2011-12 494.74 323.02 556.87 249.47 1624.10
% Diff 27.01% 18.05% 29.60% 20.15% 19.50

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

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
2011-12

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
Report

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.
Annual

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
Federations 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
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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.
The advertising agencies, Press and media, Bankers, Insurers, Management Consultants,

Annual
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.

Report
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.

2011-12
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.
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 P. K. PATHAK IFS

CHAIRMAN 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)

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
TOTAL 21,738.28 25,929.21
2011-12

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
Report

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
Annual

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

SALES MILK & MILK PRODUCTS 11 2010-2011 2011-12

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

Annual
SALES - DAIRY WHITNER 46.50 283.59
STOCK TRANSFER 3.73
TOTAL 6,153.67 8,382.22
SALE OF CATTLE FEED & OTHERS 12

Report
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

2011-12
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 16,564.41
OTHER INCOME 13
FREIGHT COLLECTED ON SALES 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

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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
SERVICE CHARGES FROM UNIONS 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
PRIOR PERIOD INCOME - 0.17
TOTAL 537.88 555.33
INTEREST & DIVIDEND 14 -
2011-12

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 -
Report

INTEREST ON INVESTMENTS 0.50 -

INTEREST FROM VEHICLE LOAN ETC 0.01 0.01
TOTAL 3.92 12.39
CLOSING STOCK 15 - -
Annual

CLOSING STOCK FINISHED GOODS 432.97 414.86

OPENING STCK 16 -
OPENING STOCK FINISHED GOODS 279.91 432.97
RAW MATERIALS CONSUMPTION 17 -
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 135.61 141.46
GHEE CONSUMED - 33.10
PEDA CONSUMED 0.21 0.71
CF RAW MATERIAL CONSUMED 10,677.62 11,404.32
SFM 4.62 5.66
DAIRY WHITNER 47.61 272.60

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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 18 - -
SALARIES TO MANAGERAIL STAFF 324.92 373.74
WAGES TO WORKERS 634.06 779.38
STIPEND TO APPRENTICES 8.04 9.71

Annual
OVERTIME 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

Report
DAILY WAGES 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

2011-12
EMPLOYERSCONTR.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
EMPLOYERSCONTR.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
STAFF WELFARE EXPENSES 18.08 21.20
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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
MDS SALARY 13.62 17.72
MEDICAL REIMBURSEMENT 0.34 0.10
CONTRBN.HEADLOAD WORKERS
WELFARE FUND BOARD - 10.92
TOTAL 1,478.82 2,035.66
MANUFACTURING EXPENSES 19 - -
STORES CONSUMPTION 115.65 136.70
2011-12

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
LAB. EXPENSES 7.22 14.04
AGMARK ISI EXPENSES 1.94 2.78
Report

LEASE AND RENT - 0.04

REPAIRS ELECTRICAL INSTALL. 0.66 2.13
REPAIRS PLANT & MACHINERY 44.31 51.63
REPAIRS TO FACTORY BUILDING 2.71 11.24
Annual

REPAIRS TO OTHER FACTORY ASSET - 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 - -
MISC. MANUFACTURING EXPENSES 1.51 1.51
TOTAL 620.93 721.54

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SELLING & DISTRIBUTION 20 - -
PACKING EXPENSES - 0.28
LOADING & FORWARDING CHARGES 52.33 61.11
CARRIAGE OUTWARDS 63.20 75.39
FUEL - DISTRIBUTION VEHICLES 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
SALES INCENTIVE-APCOS STAFF 75.17 53.36

Annual
MARKET RESEARCH - -
DISCOUNT TO APCOS 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

Report
DISCOUNT TO GRAMAPANCHAYATH 0.67 0.66
DISCOUNT TO OTHERS 4.61 2.92
TOTAL 1,666.67 1,855.39
ADMINISTRATION EXPENSES 21 - -

2011-12
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 - 0.02
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

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ADVERTISEMENT TENDER 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
INTERNAL AUDIT FEE 0.05 1.14
PROF. & LEGAL FEES 1.12 4.93
CONSULTANTS 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
2011-12

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

TA TO STAFF ON DEPUTATION - -
COMPUTER-SOFTWARE 0.40 -
R&M QUARTERS 0.02 -
R&M COMPOUD WALL & OTHER BLDGS 3.97 12.11
R&M GENERAL 1.30 0.90
Annual

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

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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 0.05
TA TO TRAINEES - 0.01
PLANTATION 0.07 0.04
TEACHING 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

Annual
TOTAL 304.43 332.69
TAXES & DUTIES 22 - -
SALES TAX 0.01 0.12
EXCISE DUTY 0.09 1.42
SHORT COLLECTION OF SALE TAX - 0.04

Report
SERVICE TAX 18.78 18.97
TOTAL 18.88 20.55
PACKING MATERIAL CONSUMED 23 - -
PACKING MAT. FOR FEED 323.38 352.29

2011-12
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
DEPRECIATION 25 -
DEPRECIATION 157.00 172.95
INCOME TAX
PROVISION FOR TAXATION 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.in Lakhs) (Rs.in Lakhs)

Source of Funds
Share Capital 211.69 211.69
Reserves & Surplus 1,371.27 1,654.24
2011-12

Long-term loans 891.49 553.40

Corpus fund for Milk Powder Plant 961.29 977.11
Total 3,435.74 3,396.44
Application of Funds
Report

Fixed Assets 1,190.01 957.52

Capital Work-in-Progress 155.78 185.97
Investments 20.50 20.50
Current Assets, Loans & Advances 4,677.74 6,265.41
Annual

Less: Current Liabilities & Provisions 4,269.06 5,045.73

Net Current Assets 408.68 1,219.68
Profit and Loss Account 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.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
Total 1,371.27 1,654.24
Long-term loan 3

Annual
NDDB Term Loan 386.20 339.78
Other Loans 505.29 213.62
Total 891.49 553.40
Corpus Fund for MPF 4 961.29 977.11
Fixed Assets (Net Block) 5 1190.01 957.52

Report
Capital Work-in-Progress 6 155.78 185.97
Investments 7
Kerala Feeds - 200 Shares of
Rs.10000/- each 20.00 20.00
KSCK & CAMS Ltd Kannur -

2011-12
2 Shares of Rs.25000/- each 0.50 0.50
Total 20.50 20.50
Current Assets, Loans & Advances 8
Inventories 1345.69 1468.89
Sundry Debtors 581.08 918.47
Loans & Advances 151.12 82.31
Interunion balances/Interunit accounts 1220.75 350.13
Contractors Balance 22.77 132.08
Deposits 57.98 379.75
Cash and Bank Balances 1298.35 2933.78
Total 4,677.74 6,265.41
Current Liabilites & 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
2011-12

Others 1,507.11 268.75

Total 4,269.06 5,045.73
Profit and Loss Account 10 1,660.77 1,012.77
Report
Annual

36