You are on page 1of 48

hmjn-I dn-tmv 2013- 2014

tIcf klIcW oc hn]W\ s^Utdj enanUv.


Kerala Co-operative Milk Marketing Federation Ltd.

Inauguration of Products Block at Thiruvananthapuram Dairy

Foundation stone laying ceremony of Kattappana Dairy expansion

Foundation stone laying ceremony of Sreekandapuram Dairy, Kannur

Annual Report
2013-2014

\apv hfcmw

h-f- F-hn-sS-bptm an-a A-hn-sS-bpv

Kerala Co-Operative Milk Marketing Federation Ltd., Thiruvananthapuram

hmXvkeyw h-f-cpp

kulr-Zw h-f-cpp
{]Wbw h-f-cpp

_- h-f-cpp

\ap-v h-fcmw
h-f- F-hn-sS-bptm an-a A-hn-sS-bpv

C o n t e n t s

1.

Board of Directors

07

2.

AGM Notice

09

3.

Report for the year 2013-14

10

4.

Operational Achievements

11

5.

Centrally Sponsored Schemes

13

6.

Welfare Activities Regional Milk Unions

14

7.

Units under KCMMF.

a)

b) Cattle Feed Plant, Malampuzha

c)

d) Milma Training Centre, Thrissur.

8.

KCMMF HEAD QUARTERS

A. Milk Procurement and Input (P&I)

23

B. Quality Assurance

24

Central Products Dairy, Alappuzha.

17
21

Cattle Feed Plant, Pattanakkad

21
22

C. Marketing

24

D. Corporate Brand Promotion Campaign

24

E.

Purchase

25

F.

Human Resources Development

25

G. Information Technology

25

H. Projects

26

I. Audit

27

J. Finance

28

9.

29

Looking Beyond Tomorrow

10. Acknowledgements

29

11. Abstract of the Audited Accounts for the year 2012-2013.

31

12. Abstract of the Audited Accounts for the year 2013-2014.

34

13. Balance sheet as on 31.03.2013 & 31.03.2014 (Audited)



with schedules.

36

14. Profit and Loss Accounts for the year 2012-2013 & 2013-2014. 37

milma

ANNUAL REPORT 2013 - 2014

Visit of Shri. T. Nanda Kumar, Chairman,


NDDB to KCMMF and Regional Unions

BOARD OF DIRECTORS FOR THE YEAR OF REPORT


(As on 31.03.2014)
Sri. P.T. Gopala Kurup

Sri. K.K. Jacob

Sri. Subrata Biswas, IAS

Sri. V. Sudhakaran

Chairman, KCMMF

Representative, ERCMPU Ltd.

Agricultural Production Commissioner,


Principal Secretary (AH&DD) Govt. of Kerala

Sri. Kallada Ramesh


Chairman, TRCMPU Ltd.

Sri. P.A. Balan Master


Chairman, ERCMPU Ltd.

Sri. K N Surendran Nair


Chairman, MRCMPU Ltd

Sri. S. Ayyappan Nair

Representative, MRCMPU Ltd.

Smt. Indira Gupta

Representative, MRCMPU Ltd.

Sri. M.S. Sayed

General Manager, NDDB

Smt. K.T. Sarojini

Director, Dairy Development Dept.

Sri. George John

Representative, TRCMPU Ltd.

Addl. Secretary, Finance Department,


Government of Kerala

Adv. S. Sadasivan Pillai

Sri. P. K. Pathak, IFS

Representative, TRCMPU Ltd.

Managing Director

Sri. T. P Markose

Representative, ERCMPU Ltd.

milma

ANNUAL REPORT 2013 - 2014

KERALA CO-OPERATIVE MILK MARKETING FEDERATION LTD


No.4345, Milma Bhavan, Pattom Palace P. O
Thiruvananthapuram

No.SM:P&I:AGM/2013-14

16th August 2014

Sir,

Sub:- 41st Meeting of the General Body of the KCMMF on 29.09.2014 - convening of - issue of notice
Notice is hereby given that the 41st meeting of the General body of the KCMMF will be held at KCMMF, Head Office,
Thiruvananthapuram at 11.00 AM on 29.09.2014 to transact the following business: 1.

Approval for the notice and Agenda for the 41st meeting of the General Body of the KCMMF Ltd.

2.

Confirmation of the minutes of the 40th AGM held on 30th September 2013.

3.

Action taken report on Minutes of the 40th AGM held on 30th September 2013.

4.

Presidential Address.

5.

Presentation of the Annual Report, Balance Sheet and Profit & Loss Account (Final &Audited) for the year 2013-14
(period from 01.04.2013 to 31.03.2014) in respect of KCMMF Ltd.

6.

Supplementary Budget for the year 2013-14

7.

Approval of the Budget for the year 2014-15 covering the period from 01.04.2014 to 31.03.2015 in respect of
KCMMF Ltd.

8.

Audit Report for the year 2012-13.

9.

Audit Report for the year 2013-14

10. Appointment of Auditors for the Audit of Accounts of the KCMMF as per Section (63) of the KCS Act, 1969 as
amended vide KCS(Amendment)Act, 2013 (Act 8 of 2013).
11.

Proposal for Amendment of Byelaw of KCMMF Ltd

12. Questions and Answers from the members of the Annual General Body
13. Resolution/s if any
14. 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 05.00 PM on
22.09.2014. Detailed agenda note will be sent separately.
Kindly make it convenient to attend the meeting.
Yours faithfully,
Sd/-

MANAGING DIRECTOR
By Order of the KCMMF Board

milma

ANNUAL REPORT 2013 - 2014

Kerala Co-operative Milk Marketing Federation Ltd.


Distinguished Members,

It

is our proud privilege to welcome you all to the 41st


Annual General Body Meeting of KCMMF. On behalf
of the Board of Directors of KCMMF Ltd. I present the
Annual Report for 2013-14 and the Financial Statement of
KCMMF for the year 2012-13 and 2013-14.

Milma has once again fulfilled its commitment to ensure


prosperity and well being of dairy farmers of the state
by ensuring remunerative price for the milk and by
implementing various welfare measures.
It has also been successful in providing nutrition to
consumers of the State of Kerala in the form of top quality
milk and milk products. Since the last quarter century, Milma
has invested better to understand the needs and aspirations
of the producers as well as consumers in the state. Milma
brand has contributed to reach more and more consumers
with products that can provide nutrition, health and
wellness. 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 wholesome nutritional food
to the millions of people in the state.
KCMMF performed well in terms of growth and profitability
during 2013-14. Business demand rose steadily through
the year and revenues for the financial year grew annually
at 29.28% on a consolidated basis. Our ability to increase
profitability in the face of strong operational constraints was
also significant. Our net profit increased by 144% compared
to the previous year, to the tune of ` 830 Lakhs during the
financial year 2013-14. 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.
The sales of cattle feed increased substantially in the year
2013-14. We were able to maintain high quality standards
for the cattle feed, manufactured from our units.

Hon' ble Minister K.C.Joseph inaugurating the Ice cream plant, Kozhikode (MRCMPU)

10

ANNUAL REPORT 2013 - 2014

milma

Honorable Members, during the year, our Unions collected


on an average 9,41,506 litres of milk daily. This is an
increase of 7.01% 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 11,86,798 litres, which is almost, stable on
comparison with the previous year. It has reduced our
dependence on outside States for milk. This endeavor should
enable us to achieve self-sufficiency in milk production in
coming years. The demand for milk is expected to increase
significantly in the next 5 years as per the projection of the
Planning Commission and the National Dairy Plan. Therefore,
Milma has to draw up strategic plans to meet the increasing
demand of milk in the State.
During the financial year, our Board member Sri K N
Surendran Nair was elected as the Chairman of MRCMPU and
other entrants to the Board were Sri V. Sudhakaran and Smt.
Indira Gupta in place of Sri K.N Mohanan.

Table 1: Paid up share capital of Kcmmf

Regional Unions

`. in Lakhs

TRCMPU

78.69

ERCMPU

30.67

MRCMPU

102.33

TOTAL

211.69

Union Registered Functional

TRCMPU

1135

1083

ERCMPU

983

862

MRCMPU

1037

863

TOTAL

3155

2808

OPERATIONAL ACHIEVEMENTS
Milk Procurement
Milk procurement averaged 9,41,506 litres per day in the
year 2013-14 with an increase of 7.01% in comparison
with avg. 8,79,789 litres per day of the previous year. The
increase in procurement shows healthy trends and the
farmers confidence in Milma. The average milk procured
per day during the last two financial years is given below:

MILK SALES
The sales of milk in different variants were almost stable
for the year 2013-14 showing the consumers continued
confidence in our brand. The average sale during the
year was 11,86,798 litres, which was almost similar to the
last year's figure of 11,88,507 litres per day. The shortfall
between milk procurement and sales was met by arranging
milk from State Milk Federations of Karnataka, Tamil Nadu,
Andhra Pradesh & Maharashtra and purchase of Skimmed
Milk Powder (SMP).

PAID UP SHARE CAPITAL

Table 2: Number of Affiliated Societies

MILK PRODUCTS

Number of Apcos
As on 31.03.14 the total numbers of registered APCOS are
3155 of which 2808 APCOS are functioning. The Number of
milk pouring societies (both affiliated and non affiliated) are
2873. The Union wise break up of Registered APCOS is given
below. Under Centrally sponsored programme NDP 196 Nos
of APCOS are proposed to be operational within a year.

The units under Regional Milk Unions and KCMMF under


the brand name of Milma produced and marketed a wide
range of quality milk products which were duly accepted by
the consumers in Kerala and abroad also. Milma has always
maintained an efficient distribution network that delivers
these products from processing plant to consumers in the
shortest time.

Table 3: Average milk procurement in litres per day

Procurement Ltrs / day


Regional Unions

2012-13

2013-14

TRCMPU

2,06,516

2,30,854

11.79

ERCMPU

2,06,396

2,20,031

6.61

MRCMPU

4,66,877

4,90,621

5.09

Total

8,79,789

9,41,506

7.01

milma

% Increase

ANNUAL REPORT 2013 - 2014

11

TRCMPU

ERCMPU

2013-14

2012-13

2013-14

2012-13

2013-14

2012-13

Avg. Milk Procurement / Day

50,00,00
45,00,00
40,00,00
35,00,00
30,00,00
25,00,00
20,00,00
15,00,00
10,00,00
05,00,00
0

MRCMPU

Fig. 1: Average Milk Procurement in litres per day

Table 4: Milk sales in litres per day

Milk Sales - Ltrs per day


4,60,100

-1.31

ERCMPU

2,99,385

3,03,664

1.43

MRCMPU

4,22,924

4,23,034

0.03

Total

11,88,507

11,86,798

-0.14

50,00,00
45,00,00
40,00,00
35,00,00
30,00,00
25,00,00
20,00,00
15,00,00
10,00,00
05,00,00
0

TRCMPU

ERCMPU
Fig. 2: Average Milk Sales in litres per day

12

ANNUAL REPORT 2013 - 2014

milma

2013-14

4,66,198

2012-13

TRCMPU

2013-14

% Diff

2012-13

2013-14

2013-14

Regional Unions

2012-13

2012-13

Avg. Milk Sale / Day

MRCMPU

The Federation has done well in the sales of most of the milk products. The details of sales of various products are
tabled below:
Table 5 : Sale of Milk Products

TRCMPU

Products

2012-13

2013-14

% Diff

GHEE (MT/Annum)

1209

1301.74

7.67

BUTTER (MT/Annum)

124

159.38

28.53

ICE-CREAM (Litres/Annum)

232451

277560

19.41

CURD (Kgs/Annum)
SAMBHARAM (Packets/ Annum)

5747007
1249730

6253000
1436900

8.80
14.98

ERCMPU

Products

2012-13

2013-14

% Diff

GHEE (MT/Annum)

769

897

16.64

BUTTER (MT/Annum)

97

107

10.31

613685

726839

18.44

CURD (Kgs/Annum)

5080799

5195151

2.25

SAMBHARAM (Packets/ Annum)

784230

1051880

34.13

ICE-CREAM (Litres/Annum)

MRCMPU

Products

2012-13

2013-14

% Diff

GHEE (MT/Annum)

1873

2097

11.97

6.806
666453

42.601
784450

525.94
17.71

CURD (Kgs/Annum)

18424088

18910997

2.64

SAMBHARAM (Packets/ Annum)

12731791

14823850

16.43

662194

795359

20.11

BUTTER (MT/Annum)
ICE-CREAM (Litres/Annum)

MILMA PLUS (Bottles/ Annum)

CPD

Products

2012-13

2013-14

% Diff

GHEE (MT/Annum)

300

288

-4.0

649125

800723

23.35

MILMA PLUS (Bottles/ Annum)

IMPLEMENTATION OF CENTRALLY SPONSORED


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

Under the scheme of IDDP, various support for new and


revived societies like, subsidy for purchasing 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 are provided.

milma

ANNUAL REPORT 2013 - 2014

13

The SIQ & CMP programme encompasses 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 Milk Chilling Plants, Dairies
and Bulk Milk Cooler societies, support for purchase of SS
Utensils for Dairy Cooperative Societies etc.
Under Idukki Package, renovation of existing cattle sheds and
construction of new cattle sheds are carried out by ERCMPU.
The Technical Monitoring Committee (TMC) is convened
periodically to review the progress of SIQ & CMP/IDDP.
The National Dairy Development Board has initiated the
implementation of New Projects viz: the Village Based Milk
Procurement System (VBMPS) and the Ration Balancing
Programme (RBP) respectively under National Dairy Plan
Phase I. The salient features of the VBMPS are organization
of new Dairy Co-operatives, provision of Data Processor cum
Milk Collection Units, Training Programme for farmers, staff
and Managing Committee members at the Training Centres,
Farmers Orientation Programme at NDDB, Anand Farmers
Induction Programme at NDDB, Anand, programme on Clean
Milk Production, provision of milk collection accessories and
milk cans etc.
The Ration Balancing Programme plans to cover; 16000 cows
from 200 milk societies in two years time and the programme
implementation is through LRPs using INAPH software,
developed by NDDB. It also deals with the mobilization of
local resources on feed & fodder ensuring availability of good
quality concentrate feed & Mineral Mixture through milk
society. The Ration Balancing Programme is being effectively
implemented in various Districts of ERCMPU & MRCMPU. Due
to RBP impact an increase in milk production of 0.23 lits/
cow/day and a reduction of ` 3.20/ lit in the cost of milk
production is observed. Steps are also being initiated by
NDDB for promotion of usage of agro-industrial by- products
for reducing the cost of milk production.

VARIOUS DEVELOPMENT AND WELFARE


ACTIVITIES BY REGIONAL MILK UNIONS
Regional Milk Unions are undertaking different projects
using their own fund and in accordance with the Centrally/
State sponsored programmes for the enhancement of milk
production and welfare of the farmers as listed below:

14

ANNUAL REPORT 2013 - 2014

TRCMPU Ltd.

12 Decentralized Veterinary clinics and 334 First


Aid clinics are functioning under the primary
cooperative societies. 13227 cases were treated
through Decentralized Veterinary clinics and 24288
through First Aid clinics. During 2013-14, Veterinary
medicines worth ` 9.09 lakhs has been given to
farmers free of cost.

Union has installed 63 Nos. of Bulk Milk Coolers.


The entire milk procured by Union is through Bulk
Milk Coolers

During 2013-14, 117 Gosamwardhini camps and 137


seminars were conducted and through these camps
6351 animals were treated.

TRCMPU is directly undertaking Artificial Insemination


scheme through 20 centres through which 11893
artificial inseminations were carried out.

Hon'ble Minister K.C.Joseph inaugurating the canopy


vehicle with freezer for Ice cream supply (TRCMPU)

An amount of `89000 given as transport subsidy


for transporting cattle purchased by farmers from
outside state.

During 2013-14, `1 lakh given as grant for construction


of DCS Building.

As cattle feed subsidy, `24 crore given to farmers.

`12.75 lakhs given to the bereaved families of dairy


farmers.

` 10.52 lakhs given as scholarship to the dependants


of dairy farmers.

All farmers included in the LIC Janasree Beema Yojana


Insurance scheme free of cost.

` 6.08 lakhs given to children of farmers as scholarship


for higher studies.

milma

Schemes for Enhancing Milk Procurement


` 212.68 lakhs paid towards Cattle Adoption Scheme

` 228.60 lakhs towards heifer adoption scheme

` 49.43 lakhs for Mini Dairy Scheme

` 4.53 lakhs to farmers who have lost their animals


due to FMD outbreak.

` 3.47 lakhs for Farmers as free cattle feed in the


FMD outbreak area for compensating the loss in milk
production.

With the financial assistance of the Government of


Kerala, 340 SC women were given assistance for heifer
rearing.

TRCMPU is implementing NDP Projects at 140 APCOS


with an outlay of ` 191.22 lakhs for Ration Balancing
Programme and ` 714.62 lakhs for VBMPS programme
Union is implementing GOI projects such as IDDP
Pathanamthitta Phase II with an out lay of ` 298.95
lakhs, CMP Trivandrum Phase II with an out lay of
`420.25 lakhs and RKVY Project- Trivandrum for
`200 lakhs

In the reporting year Union supplied 40 Ice Cream


Canopy Auto rickshaws fitted with freezer to
SC Youths.

Dr. Swaminathan has been awarded the Nanniyode


Rajan memorial Trophy this year

New products Block at Thiruvananthapuram Dairy


inaugurated.

TRCMPU is proposing various new projects such as


High Tech Dairy farm at Thiruvananthapuram, Heifer
Nursery at Thiruvananthapuram, Introduction of
Milma Atta and Rava and packaged drinking water.

ERCMPU Ltd.

Union has installed 92 Nos of Bulk Milk Coolers; about


67% of milk procured by union is through Bulk Milk
Coolers
Three SIQ-CMP projects are under implementation in
ERCMPU. The project sanctioned for Ernakulam District
with an outlay of ` 323.33 lakhs is due for completion
by 31.3.2015 and that for Thrissur & Kottayam Districts
with outlays of ` 303.53 Lakhs and ` 322.19 Lakhs are
due for completion by March 2016. These projects

with a total outlay of ` 949.05 Lakhs involves setting


up of 11 BMC Units in Ernakulam District, 12 BMC
Units in Thrissur District and 13 BMC Units in Kottayam
District, besides setting up of a Central Lab at Edapally
at a total cost of about ` 110.00 lakhs.

ERCMPU is implementing a project funded by


Scheduled Caste Development Department, extending
a calf rearing scheme to scheduled caste women at a
outlay of ` 635.00 lakhs. Another project funded by
the Department to distribute Autorickshaw Canopies
for ice-cream distribution has been successfully
implemented.

ERCMPU implemented two sub-projects viz., Ration


Balancing Programme and Village Based Milk
Procurement System, under National Plan for Dairy
Development.

Cattle feed incentive paid to all DCS @ ` 2/- per litre


during the month of April and May 2013 and @ ` 1/per litre from November 2013 to January 2014 and @
` 2/- per litre from February 2014 to March 2014.

APCOS incentive paid @ ` 0.50 per litre from December


2013 to March 2014.

Hon'ble Minister K.C. Joseph inaugurating the Ice cream vending


Three wheeler vehicle Distribution to SC Youths (ERCMPU)

FMD outbreak in ERCMPU area during December


2013-January 2014 had badly affected procurement.
Union distributed ` 13 Lakhs to farmers who lost their
animals as compensation.

The Union extended support to select farmers for calf


rearing, which involves support for cattle feed (50%
rate) and free de-worming medicines till calf reach 27
months.

Union extended head load charges @ ` 0.45 per litre of


milk to small farmers supplying more than 50 litres per
day to DCS to encourage small dairy entrepreneurs.

milma

ANNUAL REPORT 2013 - 2014

15

The Union extended mediclaim insurance to Dairy


farmers and DCS employees. (Subsidy of ` 200/-per
family in the premium from Union)

The Union extended loan subsidy for farmers who


purchase cattle on bank loan. (Cattle loan interest
subsidy @ ` 1500 up to 4 cows per farmer)

The Union continued to extend insurance subsidy to


milk producers.(Cattle insurance premium subsidy@
` 100/- per animal )

ERCMPU extended supply of bailed straw under


subsidised rate to societies. (` 2/- per kg of straw)

ERCMPU continued 50% subsidy to DCS for Centrifuge


purchase.

Hon'ble Cheif Minister Ommen Chandy laying


foundation stone for Feed Milling Plant, Koyippady, Kasargod

The Union continued extending subsidies for training


to DCS, Board and employees at Training CentreFull grant for training of DCS staff and committee
members at Training Centre of KCMMF. The Union
would extend building grant to selective DCS.

2013-14 under Heifer Development Programme


providing cattle feed at 50% cost, free insurance,
de-wormers, mineral mixture, fish oil and provision of
AI and Insurance facility on free of cost.

Milking machine subsidy (subsidy of 1/3 of the cost of


machine or ` 10000/- whichever is less).

Supply of Milk cans at 50% cost to APCOS

Group Gratuity scheme for DCS staff.

Career guidance programme for the children of DCS


staff and farmers.

Subsidy @ ` 500/- per unit for purchase of Rubber


mats

During the year 2013-14, Building Grants of


`1522500.00 were sanctioned to 17 Societies

The union provided an amount of ` 76.91 lakhs to


dairy farmers as veterinary medical reimbursement.

Union has so far established 118 AI Centers to


concentrate on breeding policies of Government
working under societies.

In addition to the KLDB semen supply, the Union has


also outsourced high quality semen from Indiagen, a
subsidiary of the National Dairy Development Board,
which is serviced through 36 AI Centres.

As on 31.03.2014 MRCMPU commissioned 46 out of


47 BMCs planned under CMP-Phase 2. Further, delivery
of 22 BMCs ordered is expected shortly.

The Union made arrangements with MRDF for


supply of alternate feed materials and an amount
of `13997485.00 was provided as subsidy for these
materials

Introduced maize milling at Pattenchery Plant. The


Grant received from the Government of Kerala
was utilized for establishment of maize milling
infrastructure at Meenangady.

Chemicals such as Sulphuric Acid, Amyl Alcohol etc


were supplied to societies free of cost under the
Centrally Sponsored Schemes

MRCMPU Ltd.

16

Union provided cattle feed subsidy of ` 200 per bag


to farmers in 2013-14 up to 31.01.2014 and the total
subsidy extended to the farmers in 2013-14 was
` 2,593.32 Lakhs. The total sales of cattle feed through
the Unions was 72281MT. The Cattle feed subsidy was
stopped from 1.02.2014 and provided additional milk
price @ ` 0.50 per litre for milk supplied to Union
during Feb & March 2014.

A total assistance of ` 100.25 Lakhs was extended


to the farmers under the Farm Support Programme
designed by the Union in the year 2013-14

After the unexpected outbreak of FMD, Union provided


compensation @ ` 10,000 per animal for FMD death
and paid an amount of ` 60.1 Lakhs to 601 farmers.

A total No of 3000 Heifers were adopted in the year

ANNUAL REPORT 2013 - 2014

milma

The APCOS Employees Welfare Society promoted for


the welfare of the employees of the Anand Pattern
Dairy Co- operatives functions efficiently under the
guidance of the Union. During the year 2013-14 the
society received financial assistance from the Union
to the tune of ` 8, 00,000. Under this scheme 1139
employees of 487 DCS enrolled and a benefit of
` 4.31 Lakhs was extended

APCOS Employees Gratuity Trust functions in


association with Life Insurance Corporation of India, in
which 1471 employees of 680 DCS were enrolled and
up to 31.03.2014 claims for an amount of ` 36.30
lakhs was settled.

Annual contribution to the Dairy Farmers Pension Fund


was made from the Union @ 12 Paise per litre and the
contribution revised to 0.75 % of sales value by GOK.
During the year 2013-14 an amount of ` 410 lakhs is
expected to be remitted to the Dairy Farmers Welfare
Board.

The Union released an amount of ` 40.00 Lakhs


to Nilambur and ` 20.00 Lakhs to Attappady for
the selected 30 DCS in Malappuram and 10 DCS in
Attappady respectively under special projects.

Under Heifer Development Programme for women


beneficiaries under SC Category 2150 heifers were
provided to 430 beneficiaries during the year 2013-14;

Govt of Kerala has introduced a new project for


the improvement of economic and social status
of Scheduled Tribe communities settled in the
Sugandhagiri area, Wayanad District known as
Sugandhagiri project through MRCMPU with 3-sub
projects- such as Dairy Farming, Vegetable Cultivation
and Thrift initiatives. Total outlay included in the
project is ` 2.33 crore and the project is up to
31.03.2015. Govt. of Kerala has already handed over
the amount to the MRCMPU Ltd.

For the year 2013-14, an amount of ` 64.75 lakhs


was released to the farmers towards the financial
assistance towards subsidy for cattle sheds

Malabar milk union implemented the various Insurance


schemes for the benefit of farmers like Samoohya
Suraksha Padhathi, Aam Admi Beema Yojana, Ksheera
Karshaka Suraksha padhathi, Mediclaim insurance etc.

During the year 2013-14, an amount of ` 1,88,000/was paid to 26 Milk producers towards the financial

assistance to the milk producer members suffering


from chronic ailments as charity fund.

During 2013-14 an amount of ` 61,500 paid to 26


students as Scholarships to the wards of dairy farmers

The Union presented awards to the best farmer, best


APCOS and best quality milk at the district level and
Union level.

Workshop for officers from various departments like


Procurement & Input, MIS, Marketing, Production and
Audit were also conducted at the Training Centre.
During the year 2013-14, 1194 persons attended
different training programmes

Union has deployed 35 VRPs associated with


implementation of Heifer Development Programme
(General) and 26 VRPs for HDP-SC Programmes in the
field. These 61 VRPs are involved in implementation of
Ration Balancing Programme also.

Cooperative Development Programme covered 40


Societies, trained 5880 dairy farmers and conducted
study tour for 4115 milk producers and 6 Management
Orientation Programmes for 180 Management
Committee Members.

The National Dairy Development Board has also


identified the MRCMPU to implement the New Projects
viz: the Village Based Milk Procurement System
(VBMPS) with a financial outlay of ` 424.50 lakhs and
the Ration Balancing Programme (RBP) with ` 190.98
lakhs respectively under the National Dairy Plan Phase
I. By March 2014 MRCMPU covered 2,898 cows.

UNITS UNDER KCMMF


CENTRAL PRODUCTS DAIRY (CPD), ALAPPUZHA
At present, CPD sells about 86000 lts of milk through
TRCMPU Ltd, out of which approximately 54000 litres is
homogenized toned milk and the balance approximately
32000 litres is double toned milk. The installed capacity
of the dairy is 60000 litres per day and we had increased
the storage capacity and cold store capacity so that we
can handle up to 1 lakhs litres of milk each day. Apart
from this, CPD produces a vide array of products. CPD has
maintained ISO 9002:1994 certification for all its products
and had switched over to the ISO 9001:2000 versions. Now,
the Dairy is certified as ISO 9001:2008 by BIS. During the
year, the quality control laboratory was modernized with
Central Government funding under the RKVY-NMPS Scheme.
New equipments replaced many of the old equipments.
Some of the products produced at CPD are

milma

ANNUAL REPORT 2013 - 2014

17

Renovated QC Lab at CPD, Alappuzha

Processing Plant at CPD, Alappuzha

Sachet filling machine

1. Ghee: CPD produces Ghee in 2 varieties (Milma and


Samrudhi). "Samrudhi" brand Ghee has become an
established brand in Kerala. Through 'Samrudhi', CPD was
the first dairy to introduce volume- based packing. Milma
Ghee is being sold through TRCMPU. The packing is done
in retail packs of 50ml to 15 kg. Since the equalization of
prices of both brands, there has been a dip in the sales of
Samrudhi Ghee and moreover Supplyco has stopped taking
our Ghee due to reduction in margin. The newly installed
Ghee packing machine has helped in meeting the demand
in time.

3. Dairy Whitener: CPD outsource the product in bulk


from GCMMF (Amul) and the same is packed in retail packing
(200gm & 500 gm pouch packing), which has got much
demand all over Kerala. Supplyco is our major client. Due to
shortage of Dairy Whitener, there was a dip in sales during
certain months.

2. Milma Plus: CPD produces Milma Plus (sterilized


flavoured milk) in 200ml disposable glass bottles in six
flavours i.e. Chocolate, Cardamom, Strawberry, Pineapple,
Pista and Mango with Chocolate flavour being the most
in demand. CPD caters for the demands of ERCMPU and
TRCMPU also.

18

ANNUAL REPORT 2013 - 2014

4. Curd: The sale of Curd is through TRCMPU and the sales


of the product have almost doubled since the last 2 years
5. Packaged Drinking Water: At present, we are getting
the outsourced product from M/s VT Industries Kottayam
& MBA Enterprises Kasargode The delay in providing the
required quantity in time has affected the sales of the same
a little
6. Mango Drink: Ready to serve beverage in pet bottles
was major achievement of Central Products Dairy during
the year. The product was initially introduced in 500 ml &

milma

1 Lit variants and now 250 ml bottles are also available. The
scarcity of mango pulp had affected the production. Along
with Ready to Serve beverage, CPD also outsource Mango
drink in tetra pack (Refresh) by entering into an agreement
with NAPC, Moovattupuzha
7. Milma Peda: CPD caters to the demand of Peda of
Marketing Cell, TRCMPU and Alappuzha market. The new
peda vat and the new peda packing room have improved
the quality of Peda.

During the year, the sales of Milma plus crossed 8 lakh


bottles showing an increase of 23.35 %

The sale of Dairy whitener and packaged drinking


water showed decrease in sales compared to previous
year

C P D achieved 2.64% increase in the sale of Milma


Mango Pet by selling a total quantity of 175402 litres.

There was 12.20% increase in the sale of Curd


compared to previous year.

Table 6 : Sales of Milk and Other Products from CPD, Alappuzha

Product

Milk (DTM, HTM & Jersey) TRCMPU

Unit of
Measurement
Litres/Day

2012-13

2013-14

% Differ

80291

80282

-0.01

Milma & Samrudhi Ghee

MT

300

288

-4.0

Curd

Kg

909476

1020388

12.20

Dairy Whitener

Kg

155127

122735

-20.88

Mango Juice (Refresh)

Trays*

67719

54447

-19.60

Milma Plus

Bottle

649125

800723

23.35

Packaged Drinking Water

Cartons**

48795

42762

-12.36

Mango juice in pet bottles

Litres

170884

175402

2.64

Peda

Kgs

5407 5657 4.62

*5.4 litres per tray ** 12 bottles of 1 litre each per carton

Milk Powder Factory (MPF):


MPF was started in December 1995 to convert the excess
milk from dairies of Milma during the flush season. We have
also converted milk for other state federations (KMF and
TCMPF) over the years.
During the year, MPF converted
11,53,754 Kgs of milk producing 98,820 Kgs of SMP.

The quality of Peda improved and there was


improvement in the sales of this item by 4.62%

The sale of Milk was almost stable on comparison


with the previous year 2012-13. The introduction of
new variant Homogenized Toned milk had a very
good impact in the market. The old version of Jersey
milk was discontinued from the market.

The sale of Refresh also had a down trend comparing


with previous year mainly because of the introduction
of RTS in pet bottles.

Process Enhancement and Automation of Products


Line Jobs were undertaken under Government Plan
Fund and RKVY/NMPS Scheme.

One 30 KL Milk Silo for Raw Milk storage, two 10 KL


Milk Storage tanks and One 10 KL Homogenizer were
installed at the dairy

Proper rearrangements of sachet filling machines


have given the Dairy a new look.

Performance for year 2013-14


The total sale during the year is ` 111.80 crores which


is the highest ever sale in a financial year. There is
8.8% increase in total sale in comparison to a sale of
`102.679 crores achieved in 2012-13.
The total revenue from the product sale is ` 19.95
crores. CPD achieved an increase of 5.11% in sale of
products compared to the total sale of products worth
` 18.98 crores during 2012-13.
The sale of Samrudhi ghee decreased whereas there
was increase in Milma Ghee. However, there was a
decrease of 4% in total sale of Ghee.

milma

ANNUAL REPORT 2013 - 2014

19

The old Pasteurizer and Chiller was replaced with


new 10 KL capacity Pasteurizer and Chiller which has
helped in increasing the processing efficiency.

The automatic filling machines provided for Mango


juice filling, SFM filling and ghee filling has increased
the capacity utilization of the products.

CATTLE FEED Production:


Considering the total production of balanced cattle feed in
the State and the requirement, there is a wide gap between
the demand and supply. KCMMF has two cattle feed plants
one at Pattanakkad and the other at Malampuzha producing
good quality pellet feed which together have a capacity
to produce 600 MT cattle feed per day. From both these
Factories, Gomathi Rich pellet Feed and Gomathi Pellet feed
are manufactured. Mainly, the Milma 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
at reasonable price during the year 2013-14.

There was considerable increase in the sales of Cattle feed


during the year 2013-14. The sales showed an increase of
21.86 % in comparison with previous year. The quantity
required over and above our own production was custom
packed at SKM Feeds Erode to meet the timely supply
to the consumers by entering into an agreement with
them adhering to all quality measures The Milma Brand of
Cattle Feed has acquired strong brand of equity among
the dairy farmers with its reasonable pricing and superior
quality. More than three fourth of the feed manufactured
is distributed through the network of 3000 plus APCOS
spread across the State and this work out to about 82%.
The Government, mainly for distribution under the Calf Feed
Subsidy Programme purchases about 15%. The remaining
3% is distributed through a network of dealers.
Others 0.3%
Dealers 2.65 %
Govt 15.05%

The details of production and sales of cattle feed in the


reporting year are given below:
APCOS 82.00%

Table 7: Comparison of Production & Sales of cattle feed


(Qty in MT)

2012-13

2013-14

Production Sales Production Sales


111324.25

Fig 3: Cattle Feed Sales Proportion

134624 114434.45 164058.70

The capacity utilization of our cattle feed plants had


an increase of 1.72% in comparison with previous year.
The major portion of our sales was through the APCOS and
the break up is as follows.

Production
Sale

Table 8: PRODUCTION OF CATTLE FEED IN THE YEAR 2013-14

Capacity
Utilization(%)
Unit
Quantity (MT)
CFP Pattanakkad
55822.30
62.06
CFP Malampuzha 58612.15 65.12
Total
114434.45 63.57

Fig. 4: Production & Sales of cattle feed

Table 9: SALES OF CATTLE FEED (Qty in MT) 2013 - 14

Units
CFP Pattanakkad
CFP Malampuzha
Total

20

ANNUAL REPORT 2013 - 2014

APCOS Dealers

Govt. Others

Total

56363.85

3075.55

12872.05

141.95

72453.40

78106.3

1179.8

11826.45

492.75

91605.3

134470.15

4255.35

24698.5

634.70

164058.70

milma

MILMA is one of the market leaders in the cattle feed market


of Kerala. Milmas supply of good quality cattle feed at a
reasonable price has acted as a control device for competitors
in the market to maintain its quality and price of their feed,
which would ultimately benefit the dairy farmers. Through
various steps initiated during the reporting year, we achieved
substantial improvement in the quality of feed in both our
Cattle Feed Plants. This contributed to improvement in the
sale 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. The landed cost of raw material in our
plants is high due to long distance transportation. Technical
problems due to power failure, breakdown due to ageing
machinery etc has also affected the capacity utilization of our
plants. Amidst these limitations, we achieved a reasonable
production at both plants.
To meet the indents received from the customers, custom
packing was arranged through outside agencies like SKM
Feeds Erode after getting into agreement with them. The
production is carried out under the direct supervision of
our officers, strictly based on our formulation and the feed
custom packed is accepted only after ensuring that the feed
custom packed is meeting our specified quality standards.
The Custom packing rates are reviewed fortnightly taking
into account all the cost factors.

Cattle Feed Plant Bagging section

Cattle Feed Plant godown

1. New raw material godown and conveying system


erection completed. The area of the new godown is
1325sqm. and can store about 1200 MT.
2. Facilities provided for entry of raw material vehicles
inside the godown for speedy unloading of materials.

Cattle Feed Plant, Malampuzha

3. 1150 MT molasses storage tank construction completed.

The plant was expanded to 100 MT in the year 1986 and


subsequently to 200 MT in the year 1994. To cope with
the marketing trends and demand, pelletisation facility was
introduced in this plant by expanding the plant capacity to
300 MT in the year 2006. The Cattle Feed Plant, Malampuzha
is selling feed through our network of around 1200 APCOS
through seven districts from Thrissur to Kasargode.
The following activities were completed in the plant during
2013-14

4. New Silo unloading system commissioned

CFP Lab at Malampuzha

Cattle Feed Plant, Pattanakkad


The plant was renovated and automated in the year 2001
and started production of Cattle Feed in Pellet form.
There was always shortage of permanent technicians and
workers for the three shift operations. The poor conditions
of the performing machines as well as the frequent
interruption in the electric supply made a hindrance to
achieve the optimum capacity of the plant. This scenario was
managed by taking production of feed on custom packing
arrangements. The following projects were completed in
the plant during 2013-14
1.

Construction of one Molasses silo(1150 MT ) capacity

2.

New pelleting line 20 MT /hour capacity with imported


pellet mill.

3.

Renovation work of the Quality control Laboratory.

4.

Steps have been initiated to replace the old machinery


with new ones in a phased manner availing Central
Govt aided schemes

milma

ANNUAL REPORT 2013 - 2014

21

The details of production of MILMAMIN in the reporting year


are given below:
Table 10: Milmamin Production

UNIT

QUANTITY (MT) QUANTITY (MT)


in 2012-13
in 2013-14

Malampuzha

68.961 75.799

TOTAL

68.961 75.799

BYPASS PROTEIN FEED

New Pellet Plant at CFP, Pattanakkad

The Bypass protein supplement provides essential amino


acids to be available for absorption at the small intestine.
Bypass protein manufacturing plant with a capacity of 50MT/
day with a total estimated cost of ` 233 lakhs is being set up
at Cattle Feed Plant Malampuzha.

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.

Pellet Plant Control Room, CFP, Pattanakkad

AREA SPECIFIC MINERAL MIXTURE


The milch animals in India across different states do not
produce milk in accordance with their genetic potential.
The deficiency of macro and micro minerals in the ration of
animals is primarily responsible for his anomaly. Although
importance of ration of animals is well understood by the
farmers, still this aspect has not been addressed with the
seriousness it deserves. Milma has been producing AREA
SPECIFIC MINERAL MIXTURE with the technical support of
NDDB and it is well accepted in the market.

During the year of report, Milma Training Centre conducted


need based and result oriented Training Programmes- both
in-house and off campus- for all different functionaries
of Primary APCOS aiming at improving the quality of
performance of human resources available in the Societies
which in turn improves their total functional effectiveness and
efficiency. The training programme address all three areas
involved in performance namely conceptual knowledge,
skill and aptitude, behavioral aspects leading to attitudinal
changes, improving the awareness quality, spontaneity and
developing dealership qualities are also included in the
course content. The training module for the residential
programmes includes on the job training and study visits.
During the year we have trained 1379 trainees on both off
campus and in-house training programmes. The training
income during the year was around ` 24.3 lakhs. The
participation of TRCMPU and ERCMPU in different training
programmes conducted by the Milma Training Centre was
satisfactory. No trainees have been deputed from MRCMPU
Ltd. Two new Entrepreneurship Development Training
Programmes were conducted during this report year.
The Training Centre has all modern instructional systems like
Lap Top Computers, LCD Projectors and other conventional
audio visual aids. Now the Training Centre has air-conditioned
class room. The feedback received from various sources and
the trainees is quite encouraging

22

ANNUAL REPORT 2013 - 2014

milma

Table 11: Details of Training programmes conducted during the reporting year

Sl.No

Training Programme TRCMPU


ERCMPU
Others

Physical(Nos) Financial(Rs) Physical(Nos) Financial
(Rs) Physical(Nos) Financial(Rs)

1
Secretary Basic

5 45000 1
9000 0 0

Secretary Refresher (Field)

251

235700

96

80600

Tester Refresher (Field)

133

163000

Tester /Collector (Field)

15

19500

91

177450

Milk Collector (Field)

64

113100

6
Bulk Milk Cooler Operation and

Management (Field)

44 57200 0 0 0 0

7
Presidents (Field)

46 78000 0 0 0 0

Management Committee
Orientation (Field)

125

234000

46

89700

Dairy Animal Management (Field)

90

175500

10

Farmer Induction Programme

54

86400

11

Farmers Training (CMP)

29

56550

12

Goat Farm Entrepreneurs

239

669200

13

Dairy Farm Entrepreneurs

50

140000

TOTAL

827
1207400 263
413300 289
809200

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.

MILK PROCUREMENT & INPUT (P & I)


The Regional Milk Unions of the Federation provide various
inputs for assisting economic milk production and for
improving the quality of milk. The veterinarians under the
P & I wing of Regional Milk Unions conduct infertility check
ups and prescribe corrective treatment. Dairy farmers
get economic protection from the advent of disease and
accident through insurance coverage schemes for their
cattle. Balanced cattle feed is made available through
primary co-operative societies. The milk reception in most
of the dairies is in tankers and the can collection is limited.
The P & I wing of the Federation serves as a link between the
Regional Milk Unions and the Government of India and Kerala
for the implementation of various schemes through grants
and subsidies. 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 action. The Federation also organizes
meetings of P & I staff of the Regional Milk Unions, officials
of APCOS and dealers of cattle feed at various intervals. This
also helped as a mechanism for complaint redressal.

milma

ANNUAL REPORT 2013 - 2014

23

Quality Assurance
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 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.
As and when custom packing is arranged to make up the
shortfall, strict quality control measures are initiated to
maintain the quality of the custom packed feed at par with
own production. All the raw materials used for the production
are verified in time using sophisticated equipments and
subjected to counter checking also The samples of feed are
sent to accredited laboratories and to NDDB for analysis.
The results are compared with local results and changes
are made in the formulae accordingly. The quality control
labs of both Cattle Feed plants are planning to get NABL
accreditation also
The Quality Control wing ensures that milk received from
other states 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.
New machines under Centrally Sponsored Schemes replaced
many of the old equipments being used in the Central
Products Dairy and both Cattle Feed plants and the quality
testing has become more accurate.

24

ANNUAL REPORT 2013 - 2014

All the Dairies under Milma are either ISO 22000 certified
or ISO 9001:2008 certified. The Malabar Region hasgot
exporting licenses for Ghee exporting for Kannur & Wayanad
Dairies.
A Core Committee comprising officers from all Regional
Milk Unions and Federation has been formed to assess the
maintenance of FSMS in all dairies and to give suggestions
and recommendations for improvement

MARKETING
The Programming Committee of the Federation is
responsible for taking major marketing decisions with the
approval of the Board. The PCM regularly meets and takes
stock of the market situation and also milk situation for
taking appropriate decisions. KCMMF coordinates all the
activities connected with purchase of milk and consumables
from other states and also planning and implementing inter
Union movement of milk and products.
KCMMF had revised the purchase rate of milk from farmers
and the selling price of various variants of milk in the year
2012 This price revision has resulted in the increase of
procurement of milk from the farmers and simultaneously
there was sale increase also

CORPORATE BRAND PROMOTION CAMPAIGN


After the revision in the selling price of milk effected in
month of October 2012, the milk sales from our Regional
Milk Unions showed a negative growth.
Competitive
activity increased with higher price spread and some of the
competitors could make inroads into our markets. KCMMF
Board decided to address this issue by organizing a Corporate
Brand Promotion Campaign with the objective of creating a
positive image to the brand and also by revamping the milk
packages. Accordingly, M/s. Lowe Lintas & Partners., one of
the leading advertising agency was selected and entrusted
with the responsibility to carry out the campaign. The task
that set for the agency was of reimagining brand MILMA.
A new look was given to the milk sachets with a complete
brand makeover and a well-planned corporate campaign
was launched.
The new-look MILMA sachets hit the stands on 1st November
2013, "Keralappiravi Day" with a new tag line, Lets Grow.
The Regional Milk Unions and the Federation jointly carried
out this successful campaign by spending nearly `3.5 crores.
The impact of the campaign both in terms of creating

milma

positive image and also the physical achievements were


assessed and it was found that the campaign could give a
better image to the organization and also we could regain
the lost sales and record a positive growth.

PURCHASE
KCMMF introduced e-tender system for effecting major
purchase. The tendering system for awarding contract for
dairy consumables and procurement of major raw materials
for cattle feed and packing material has been implemented
through e-tender site of Government of Kerala. Annual
Supply contracts for Dairy consumables are finalized, after
inviting bids through e-tender. The Purchase Committee
comprising the Managing Directors of the Federation and
three Regional Milk Unions, General Manager (Purchase)
Senior Managers-Finance and P&I/QC of the Federation
finalize the purchase of Dairy consumables.
Procurement of raw materials for Cattle Feed production is
a periodic activity. It is an open market operation mainly
through brokers/ suppliers/manufacturers. The purchase of
major ingredient; DORB is arranged regularly from North
India through rake after floating tender in e-tender site.
A Purchase Committee comprising of General Manager
(Purchase), Senior Manager (Finance) and Senior Manager
(P&I & QC) of the Federation carry out the daily purchase.
The committee takes the advice from the Unit heads of
both Cattle Feed Plants before finalizing the purchases of
raw materials. The proposal of the Purchase Committee is
submitted to Managing Director for approval and informed
to KCMMF Board.

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 sufficient skilled,
efficient and qualified personnel in its units and Head Office.
We also have committed employees, who work hard to
achieve the objectives of the organization. We are making
continuous efforts for the skill upgradation 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 new
staff pattern for the Federation and Unions was prepared
by a Govt. constituted Expert committiee and submitted
to the Govt. for approval. 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 PSC have already notified for the
68 posts and the recruitment process is in progress.

INFORMATION TECHNOLOGY (IT)

Adequate stock of molasses at both feed plants could be


ensured by arranging purchase of molasses at reasonable
rates, compared to the market rate prevailing during the
period.

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 [Milmas Integrated Information
System] through networking of Units was one of the early
adopted measures in this direction, by KCMMF Computer
Center.

In spite of all odds, all measures were taken to keep the


price of all commodities under check and to maintain good
quality of cattle feed produced and marketed to the dairy
farmers of the state.

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.

The vendor base has expanded over the years ensuring


regular supply of raw materials and packing materials of
good quality at competitive price. The procurement system
takes advantages of fluctuations in price of the commodities
and evens out the peak price by bulk purchase on decline of
price. This has helped us in maintaining the quality of our
product.

milma

ANNUAL REPORT 2013 - 2014

25

During the year, by setting up Virtual Private Network (VPN)


between KCMMF Head Office and Trivandrum Dairy and its
Cash Collection Centers has done significant improvement
in managing Servers, Databases and applications remotely
from KCMMF Head Office and all the modules of DairyERP is in operation at Trivandrum Dairy. 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.

PROJECTS
The Projects section of KCMMF undertakes the Engineering
Projects under Federation/Regional Milk Unions. Setting up of
new Dairy Plants, Cattle feed plants and expansion activities
of dairies and cattle feed plants are the major functions of
the projects section. The Projects are executed as turnkey
as well as consultancy basis. The detailed project reports
with cost estimation are prepared and total planning on
implementation of projects is done before commencing the
physical work at site. The financial and physical budgeting
for implementation of the project, detailed Engineering
drawings and technical specification, preparation of tender
document and finalization, physical implementation of the
project, monitoring the progress, Liaisoning with statutory
bodies for getting approval etc are done by the Projects
Section. Purchase of dairy machinery, electrical equipment,
other machinery, steel, cement etc required for the project
is also carried out by the Projects Section. . The tenders
related to project work are invited and awarded through
the e-portal of the State Govt. www.etenders.kerala.gov.in
The State Govt. has constituted a purchase committee for
various Govt. of India/State Govt. Schemes and projects,
being implemented by Federation & Regional Milk Unions
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, ERCMPU & MRCMPU during
the reporting year.

KCMMF PROJECTS
1. Cattle Feed Plant, Pattanakkad
Under RKVY-NMPS Scheme of the Central Govt. an amount
of ` 381.75 lakhs was sanctioned for the modernization of

26

ANNUAL REPORT 2013 - 2014

cattle feed plant, Pattanakkad against the project proposal


submitted by us. Order for supply & installation of a new
pelleting line of 20 MT/hr. capacity with imported pellet
mill, feeder, conditioner, molasses mixer, pellet cooler and
allied equipments and indigenous machinery related to the
new pelleting line was placed. The machineries arrived at
the plant and erection of equipments commenced in the
reporting year. The expansion of laboratory to accommodate
new equipments sanctioned under the NMPS scheme was
also taken up.
A molasses storage tank with 1150 MT capacity was also
constructed and commissioned under the State Plan Fund of
` 75.00 lakhs sanctioned by the Govt. of Kerala to augment
the capacity of the molasses storage.

2. Cattle Feed Plant, Malampuzha.


Cattle feed plant, Malampuzha was having shortage of raw
material storage space. To overcome this problem, a new
raw material godown was constructed to store raw materials
required for the production of cattle feed. A new conveying
system was also installed in place to transfer the material
from the new godown to the plant directly for taking
production. The project was partly financed by the State
Government under assistance to Public sector undertakings
for which Govt sanctioned an amount of ` 200.00 lakhs.
A molasses storage tank with 1150 MT capacity was also
constructed and commissioned under the State Plan Fund of
` 75.00 lakhs sanctioned by the Govt. of Kerala to augment
the capacity of the molasses storage.
A proposal for setting up of bypass protein plant was
submitted to State Govt. with an outlay of ` 233.00 lakhs
and the State Govt. sanctioned an amount of ` 150.00 lakhs
under State Plan Fund 2013-14. The initial planning activities
of this project were undertaken in the reporting year.

3. Central Products Dairy, Alappuzha


The expansion of the products manufacturing facilities
was completed in the reporting year. Various new dairy
equipments, viz., Homogenizer, Pasteurizer, Milk Silos, and
Horizontal Milk Tanks etc were installed and commissioned.
The expansion of the milk storage tank and packing areas
were also completed. Automatic filling lines for ghee,
mango juice & sterilized flavoured milk were installed and
commissioned. This project was partly financed by State
Govt. under Assistance to Public Sector Undertakings for
which Govt. sanctioned an amount of ` 215.00 lakhs.

milma

MRCMPU PROJECTS
1. Kozhikode Dairy/Ice Cream Plant
The civil and electrical works for the ice cream plant, new
crate washer block, expansion of boiler house and godown
were completed and the ice cream plant commissioned and
production commenced.

MRCMPU acquired 15 acres of land at Sreekandapuram in


Kannur Dist. for setting up of 1 lakh litre capacity dairy plant
with an outlay of ` 40.00 crores. An amount of ` 7.50 crores
was granted by Govt. as one time Central Assistance. The
foundation stone for the new dairy was laid in the reporting
year and initial planning activities commenced.

2. Central Products Dairy, Naduvattom

ERCMPU PROJECTS

The expansion of the products block and a new block for


canteen and workers amenities at Central Products Dairy,
Naduvattom was taken up in the reporting year. The project
outlay is ` 400.00 lakhs.

1. Ernakulam Dairy.

3. Palakkad Dairy, Kallepully, Palakkad.


Project works for civil works & electrical works for the
expansion of Palakkad Dairy with an outlay of ` 165.00 lakhs
including construction of a new P&I block were completed
in the reporting year.

4. Kasargode Dairy Expansion Project.


The expansion activities of Kasargode Dairy under IDDP
Scheme including construction of new administrative block,
canteen and tray wash block started in the reporting year
and the works are in progress. The outlay for this project is
` 155.00 lakhs.

5. Kannur Dairy Expansion Project


The expansion activities of Kannur Dairy under IDDP Scheme
including expansion of the marketing block and a new tray
washing block started in the reporting year and the works
are in progress. The outlay for this project is ` 145.00 lakhs.

6. TMR Plant at Meenangadi


The civil work for setting up of TMR Plant at Meenangadi,
Wayanad Dist. was completed in the financial year. The
installation of Pulvarizer & accessories for maize grinding
was also completed. This project is financed by State
Government under Assistance to Public sector undertakings
for which Govt. sanctioned an amount of ` 200.00 lakhs.

7. Wayanad Dairy.
The civil works for the expansion of Wayanad Dairy under
RSVY including a new block for the butter manufacturing,
processing & packing commenced in the reporting year.
The total outlay of above project is ` 450.00 lakhs.

8. New dairy at Sreekandapuram, Kannur

The expansion of Ernakulam Dairy from 1.00 LLPD to 2.50


LLPD was taken up with an outlay of ` 835.00 lakhs. The
civil works for the expansion of process hall, new pouch
filling and crate wash area were partly completed. The dairy
equipments for expansion of the dairy, viz., Homogenizer,
Pasteurizer, Crate Washer, Curd Processing Plant, Butter Deep
Freezer, Milk Silos & Horizontal Milk Tanks were purchased
and the installation is in progress. The mechanical and
electrical erection works are also in progress. This project
is partly financed by Central Govt. under NMPS RKVY
Scheme.

2. Kottayam Dairy
The proposal for expansion of Kottayam Dairy with an outlay
of ` 952.67 lakhs submitted to Govt. was sanctioned and
the first allotment of `226.00 lakhs received. The civil
works of the new administrative block, ghee making block,
silo area and Effluent Treatment Plant were taken up in the
reporting year.

3. Products Dairy, Edapally


The civil works for the construction of boiler house, water
tank & marketing hub were completed in the reporting year.
The tender for setting up of new effluent treatment plant
was floated and finalized

AUDIT
A team of Auditors under the Deputy Registrar of Cooperative 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 2012-13 and 2013-2014.
A Concurrent auditor is posted in each unit and all aspect of
our business is audited. Decision to post internal auditors at
all the units of KCMMF has been taken and internal audits will
be started from next financial year onwards.

milma

ANNUAL REPORT 2013 - 2014

27

FINANCE
During the year 2013-14, KCMMF achieved a turnover of ` 386.51 crores (audited) as against ` 298.49 crores during the
previous year. The net profit of the reporting year is ` 830.02 lakhs.
The turnover and the profit/loss of the Federation and the Unions for the financial year 2013-14 in comparison with previous
year are given under:
Table 12 : Turnover of KCMMF Units ( ` in lakhs)

Year
CFP (P)
CFP (M)
CPD
Total

% Increase over
the previous year

2012-13 8775.84 10805.22 10267.99 29849.05 19.65


2013-14 12132.68 15338.27 11180.11 38651.06 29.49

` in Lakhs

38651.06
29849.05

2012-13

Year

2013-14

Fig. 5 : Turnover of KCMMF


Table 13: Turnover of KCMMF ( `in crores)

TRCMPU ERCMPU MRCMPU KCMMF TOTAL

2012-13 596.15 382.38 628.07 298.49 1905.09


2013-14 662.50 428.70 708.85 386.51 2186.56
% Diff

11.13

12.11

12.86

29.49

14.77

Table 14: Profit/Loss of KCMMF ( `in crores)

TRCMPU ERCMPU MRCMPU KCMMF TOTAL

2012-13

2.61

9.31

2.73

3.40

18.05

2013-14

( -)2.81

2.24

(-)9.59

8.30

(-)1.86

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.

28

ANNUAL REPORT 2013 - 2014

milma

LOOKING BEYOND TOMORROW


Kerala has become one of the frontline states in dairying.
The demand for milk and milk products in the state is
always 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 has already been initiated in the coming
years. The expansion of Central Products Dairy by creation of
new infrastructure is envisaged in coming years.

ACKNOWLEDGMENTS
The KCMMF Board of Directors extends thanks to 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 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 grateful 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,
Madhya Pradesh, Bihar 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 thank them for their support and
co-operation.
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
future.
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 satisfy them. The Board of Directors
thanks them for their continued support.
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
organization 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 higher level on its growth
journey.

On behalf of the Board of Directors


P.T GOPALA KURUP
CHAIRMAN

milma

P. K. PATHAK
MANAGING DIRECTOR

ANNUAL REPORT 2013 - 2014

29

30

ANNUAL REPORT 2013 - 2014

milma

milma

ANNUAL REPORT 2013 - 2014

31

By Trade Income
By Closing Stock

510,354,522.83
34,521,049.72

To Selling & Distribution Expenses

108,130,798.64
68,571,288.32

To Establishment charges

To Contingencies

17,317.00

To Loss on Sales of Fixed Asset

132,009,245.97

TOTAL

98,058,126.88
TOTAL 132,009,245.97

Net Loss for the year C/D

132,009,245.97

Net loss of the previous year

33,951,119.09

GRAND TOTAL 239,481,956.55


Profit for the year b/d

239,481,956.55

33,951,119.09

GRAND TOTAL

Profit for the year C/D

4,120,177.48

62,412,816.21

172,948,962.86

TOTAL 239,481,956.55

1,968,934.00

To Taxes & Duties


205,530,837.46

20,226,170.50

To Depreciation and other Reserves

By Recoupment operation-deficit

By Miscellaneous Income

By Gross Profit b/d

TOTAL 3,068,724,621.11

6,616,329.00

TOTAL

96,911,095.59

9,169,411.80

Total 3,068,724,621.11

To Interest paid

3,068,724,621.11

TOTAL

172,948,962.86

To Gross Profit

2,895,775,658.25

Total

(`)

49,753.70 2,962,644,113.72

Less: Sales Return

22,211,003.00

To Trade Charges

Less: Discount on sales

2,223,204,519.84

2,984,904,870.42

(`)

To Purchase

By Sales

INCOME

127,695,565.86

(`)

To Opening Stock

EXPENDITURE

Abstract from the final Audited Accounts for the year 2012-2013
Trading and Profit & Loss Account for the year ended 31-03-2013(Consolidated).

32

ANNUAL REPORT 2013 - 2014

milma

1,759,558,704.27

TOTAL

1,903,682,134.76 1,759,558,704.27

132,009,245.97

56,778,190.18

1,264,301.78

NDDB SDC Fund

83,539,513.23

1,306,044.27

81,578,895.79

266,934,034.00

Inter-Unit - Due by

59,605,567.78

149,244,804.49

Undistributed Profit

1,853,751.55

12,134,689.98

2,566,042.96 408,935,252.90

193,630,466.71

1,264,301.78

617,236,943.86 127,695,565.86

1,429,927.75

59,605,567.78

Capital Reserve

284,783,417.72

4,204,849.00

2,055,000.00

402,384,108.47 308,286,866.97

210,729,365.14

2,365,322.63

25,473,669.45

21,169,000.00 335,242,704.55

283,717,832.75

2,546,042.96

Corpus fund

Farmers Organisation &


Tech Input


1,264,301.78

177,772,179.30

Adjusting heads-Due by

434,062,730.63

Funds,Reserves&Provisions

381,999,228.04

Interest Payable

Grants and Subsidies

2,365,322.63

Borrowings

165,478,315.78

97,117,176.88

Share Capital

21,169,000.00

TOTAL

Net Loss

Operation deficit (Loss a/c)

Corpus Fund

Net Loss TRCMPU

Farmers Organisation & Tech Input

Current Assets

Fixed Assets

Stock Deficit

General Stores(CPD)

Stock-in-trade

Inter-Unit - Due to

Adjusting Heads due to

Security Deposit & Investments

Investment in shares

Cash and Bank

1,903,682,134.76

98,058,126.88

56,778,190.18

85,431,117.27

1,429,927.75

1,264,301.78

1,375,346.32

456,028,120.32

925,611.55

12,805,650.78

96,911,095.59

295,999,996.26

379,749,746.81

4,198,263.00

2,055,000.00

410,671,640.27

As on 31.03.2012
LIABILITIES
As on 31.03.2013 As on 31.03.2012
ASSETS
As on 31.03.2013
(in `) (in `) (in `) (in `)

BALANCE SHEET AS ON 31-03-2013


(AUDITED)

milma

ANNUAL REPORT 2013 - 2014

33

34

ANNUAL REPORT 2013 - 2014

milma

By Closing Stock

4,065,274,950.05

TOTAL

264,823,677.62

3,800,451,272.43 Total

5,950,474.84

437,621,354.33

By Trade Income

By Sales

INCOME

4,065,274,950.05

4,065,274,950.05

194,064,599.27

6,104,450.29

3,865,105,900.49

(`)

3,991,322.00

To Interest paid

By Recoupment operation-deficit

By Miscellaneous Income

335,436,724.88
335,436,724.88

TOTAL

356,845,055.51

83,002,346.35

273,842,709.16

TOTAL

Net Loss for the year C/D

Profit for the year b/d

GRAND TOTAL

TOTAL

3,132,481.00

Net loss of the previous year

GRAND TOTAL

Profit for the year

TOTAL

To Taxes & Duties

25,734,372.50

113,953,651.96

To Contingencies

To Depreciation and other Reserves

127,030,881.70

To Establishment charges

335,436,724.88

252,434,378.53

83,002,346.35

356,845,055.51

356,845,055.51

6,447,558.49

85,573,819.40


By Gross Profit b/d 264,823,677.62

TOTAL

To Gross Profit

Total

To Selling & Distribution Expenses

To Trade Charges

3,259,968,347.67

96,911,095.59

To Opening Stock

To Purchase

(`)

EXPENDITURE

Abstract from the final Audited Accounts for the year 2013-2014
Trading and Profit & Loss Account for the year ended 31-03-2014(Consolidated).

milma

ANNUAL REPORT 2013 - 2014

35

210,729,365.14

402,384,108.47

617,236,943.86

Adjusting heads-Due by

Funds,Reserves&Provisions

Grants and Subsidies

Interest Payable

Borrowings

Share Capital

83,539,513.23

283,717,832.75

1,903,682,134.76

TOTAL

NDDB SDC FUND

Inter-Unit - Due by

Net Profit of previous year

300,893,093.00

173,605,732.74

247,949,374.57

85,431,117.27

1,429,927.75

1,264,301.78

1,375,346.32

456,028,120.32

2,341,915,776.98

1,903,682,134.76

98,058,126.88

Undistributed Profit

2,719,792.96

925,611.55

59,605,567.78

Capital Reserve

200,078,000.20

12,805,650.78

96,911,095.59

295,999,996.26

379,749,746.81

4,198,263.00

2,055,000.00

410,671,640.27

56,778,190.18

2,566,042.96

Corpus fund

661,346,012.47

403,796,524.27

311,024,049.14

2,365,322.63

16,968,875.00

21,169,000.00

193,630,466.71

Farmers Organisation & Tech Input


1,264,301.78

2,365,322.63

25,473,669.45

21,169,000.00

TOTAL

Net Loss

Operation deficit (Loss a/c)

Corpus Fund

Net Loss - TRCMPU(10/86 to 12/88)

Farmers Organisation & Tech Input

Current Assets

Fixed Assets

Stock Deficit

General Stores(CPD)

Stock-in-trade

Inter-Unit - Due to

Adjusting Heads due to

Security Deposit & Investments

Investment in shares

Cash and Bank

2,341,915,776.98

252,434,378.53

99,043,787.23

1,429,927.75

1,300,729.40

519,947,060.92

925,611.55

10,765,481.32

194,064,599.27

337,897,314.66

438,268,941.82

5,161,949.00

2,055,000.00

478,620,995.53

As on 31.03.2013
LIABILITIES
As on 31.03.2014 As on 31.03.2013
ASSETS
As on 31.03.2014
(in `) (in `) (in `) (in `)

BALANCE SHEET AS ON 31-03-2014


(AUDITED)

KERALA CO-OPERATIVE MILK MARKETING FEDERATION LIMITED


MILMA BHAVAN, PATTOM PALACE ( P.O), THIRUVANANTHAPURAM

Balance Sheet as on 31/03/2013 & 31/03/2014


(Audited)
( ` in lakhs)
Particulars

Sch No.

31-3-2013

31-3-2014

211.69

Source of Funds
Share Capital

211.69

Reserves & Surplus

2,107.52

3,112.01

Long-term loans

354.74

269.69

Corpus fund for Milk Powder Plant

1,081.99

1,010.34

Total

3,755.94

4,603.73

Application of Funds
Fixed Assets

980.24

1,553.77

Capital Work-in-Progress

104.94

(60.78)

Investments

20.55

20.55

Current Assets, Loans & Advances

7,453.42

8,999.84

Less: Current Liabilities & Provisions

5,634.22

5,910.64

Net Current Assets

1,819.20

3,089.20

831.01

0.99

Profit and Loss Account

10

Total

3,755.94 4,603.73

Note: Previous Year (2012-2013) figure regrouped wherever necessary as we have incorporated audited figure in 2012-13.

36

ANNUAL REPORT 2013 - 2014

milma

KERALA CO-OPERATIVE MILK MARKETING FEDERATION LIMITED


MILMA BHAVAN PATTOM THIRUVANANTHAPURAM - 695 004

PROFIT & LOSS ACCOUNT FOR THE YEAR 2012-2013 & 2013-2014
(Audited)
(` in lakhs)
INCOME

Sch. No.

2012-13

2013-14

SALES MILK & PRODUCTS

11

10,267.99

11,180.11

SALE OF CATTLE FEED & OTHERS

12

19,581.05

27,470.96

OTHER INCOME

13

521.88

664.73

INTEREST & DIVIDEND

14

48.36

21.05

CLOSING STOCKS

15

329.93

TOTAL

30,749.21

633.76
39,970.61

EXPENDITURE
OPENING STOCKS

16

409.32

329.93

RAW MATERIALS CONSUMPTION

17

23,936.04

31,543.94

PAYMENTS & BENIFITS TO EMPLOYEES

18

2,029.83

2,478.88

MANUFACTURING EXPENSES

19

813.98

936.17

SELLING & DISTRIBUTION

20

1,735.72

1,799.88

ADMINISTRATION EXPENSES

21

184.03

216.90

OTHERS

22

0.17

TAXES & DUTIES

23

42.80

68.88

PACKING MATERIAL CONSUMED

24

808.84

998.76

INTEREST

25

66.16

39.91

DEPRECIATION

26

202.26

257.34

TOTAL

30,229.15

38,670.59

NET PROFIT BEFORE TAX

520.06

1,300.02

LESS: PROVISION FOR INCOME TAX

180.55

470.00

339.51

830.02

27

PROFIT AFTER TAX

Note: Previous Year (2012-2013) figure regrouped wherever necessary as we have incorporated audited figure in 2012-13.

milma

ANNUAL REPORT 2013 - 2014

37

Schedules to Balance Sheet as on

(` in lakhs)
Particulars
Share Capital

Sch No.

31-3-2013

31-3-2014

Shares of `1000/- each

211.69

211.69

Total

211.69

211.69

Reserves & Surplus


2
Grants from NDDB
400.72
400.72
Grants from Govt.
1,679.57
2,682.52
Special Capital Reserve
27.23
28.77
Total
2,107.52
3,112.01
Long-term loan
3
NDDB Term Loan
254.74
169.69
Imprest Adv- MRCMPU
100.00
100.00
Total
354.74
269.69
Corpus Fund for MPF
4
1081.99
1,010.34
Fixed Assets (Net Block)
5
980.24
1,553.77
Capital Work-in-Progress
6
104.94
(60.78)
Investments 7
NSC
0.05
0.05
Kerala Feeds - 200 Shares of `10000/- each
20.00
20.00
KSCK & CAMS Ltd Kannur - 2 Shares of `25000/- each
0.50
0.50
Total
20.55
20.55
Current Assets, Loans & Advances
8
Inventories
1112.98
2,061.31
Sundry Debtors
830.73
1,049.07
Loans & Advances
64.62
47.79
Interunion balances/Interunit accounts
410.94
(72.76)
Contractors Balance
494.89
1,014.14
Deposits
432.54
114.08
4106.72
4,786.21
Cash and Bank Balances
7,453.42
8,999.84
Total

38

ANNUAL REPORT 2013 - 2014

milma


(` in lakhs)
Schedules to Balance Sheet as on
Particulars

Sch No.

31-3-2013

31-3-2014

9
Current Liabilities & Provisions
NDDB-SDC Special Fund
2,864.18
3,035.93
1,098.30
1,592.97
Creditors for goods supplied/others
255.17
111.80
Expenses Payable
379.36
483.09
EMD/SD
115.67
91.43
Outstanding to Employees/Misc recoveries
192.83
262.56
Outstanding liability payable
31.70
13.09
Income Tax
6.24
8.11
Sales tax/service tax
56.13
22.82
Employees PF
1.76
1.49
ESI
23.70
6.46
Audit cost payable
133.80
128.93
Deposit from Societies
250.65
96.28
Other Provisions &Reserves
224.73
55.68
Others
Total
Profit and Loss Account

10

milma

5,634.22

5,910.64

831.01

0.99

ANNUAL REPORT 2013 - 2014

39

SCHEDULES TO PROFIT & LOSS ACCOUNT FOR THE YEAR 2012-2013 & 2013-2014
SALES MILK & MILK PRODUCTS

11

SALES - HI-FAT MILK


SALES- DOUBLE TONED MILK
SALES- HOMOGENIZED TONED MILK
SALES - GHEE
SALES - SFM
SALES - REFRESH
SALES - SAMBARAM
SALES - PEDA
SALES - CURD
SALES - SMP 500 GM
SALE - PACKED DRINKING WATER
SALES - DAIRY WHITENER
TOTAL

2012-13

2013-14

1,773.51
5,195.84
1,399.85
937.28
86.52
184.24
-
12.09
281.22
0.06
40.04
357.34

122.99
4,101.85
4,959.91
997.03
110.04
182.36

10,267.99

14.11
355.32
43.56
292.94
11,180.11

12
SALE OF CATTLE FEED & OTHERS
SALE - CF APCOS
15,346.71
22,394.12
1,104.32
762.43
SALE - CF DEALERS
2,945.77
4,177.61
SALE - CF DRDA/SLBP
47.75
49.89
SALE - MILMAMIN
52.29
36.75
SALE - CF GOVT FARMS
13.43
9.80
SALE - CF OTHERS
56.70
34.63
SALE - CF KVCS
13.45
5.73
SALE - CF GRAMAPANCHAYATH
0.63
INTER DEPARTMENT STOCK TRANSFER
TOTAL

19,581.05

27,470.96

13
OTHER INCOME
FREIGHT COLLECTED ON SALES
24.14
0.18
0.29
RENT:STAFF QTRS.
0.23
0.21
OTHER RECEIPTS/RENT:PARLOUR
42.55
33.34
CONVERSION CHARGES
SALE OF OLD GUNNIES
58.99
47.69
13.34
17.70
SALE OF SCRAP/OLD PL.BAG
0.12
0.16
AGRICULTURAL INCOME
29.57
31.45
MISC. INCOME
1.63
1.47
SALE OF TENDER FORMS
0.70
2.64
INSURANCE CLAIM RECEIVED
39.47
63.88
TECHNICAL CONSULTANCY
45.00
45.00
SERVICE CHARGES FROM UNIONS
16.71
23.84
RECEIPT - TRAINING CHARGES
41.20
RECOUPMENT OPERN. DEFICIT
13.23
18.38
COMPUTER CONSULTANCY CHARGES
194.82
207.03
CF PRICE INTERVENTION FUND
-
171.65
CORPUS FUND RECEIPT
TOTAL

40

ANNUAL REPORT 2013 - 2014

milma

521.88

664.73

SCHEDULES TO PROFIT & LOSS ACCOUNT FOR THE YEAR 2012-2013 & 2013-2014
INTEREST & DIVIDEND

14

2012-13

2013-14

INTEREST ON FD

2.34

5.13

INTEREST ON S.B.ACCOUNT

0.33

0.20

INTEREST ON SECURITY DEPOSIT


INTEREST ON OTHER DEPOSITS
DIVIDEND ON INVESTMENTS

-
45.53
-

0.05
15.31
0.10

INTEREST FROM VEHICLE LOAN ETC

0.16

0.26

TOTAL
CLOSING STOCK
15

48.36
-

21.05
-

CLOSING STOCK FINISHED GOODS


OPENING STOCK

16

OPENING STOCK FINISHED GOODS


RAW MATERIALS CONSUMPTION

329.93
409.32

633.76
329.93

17

MILK FROM SOCIETIES

3,234.77

4,301.28

MILK FROM OTHERS

3,479.09

3,209.80

MILK POWDER CONSUMED

445.37

1,064.88

REFRESH CONSUMED

130.87

111.16

GHEE CONSUMED

159.33

58.33

PEDA CONSUMED

1.49

1.34

CF RAW MATERIAL CONSUMED

12,783.89

15,020.33

SFM

4.75

5.08

DAIRY WHITENER

276.63

229.29

CARRIAGE INWARD MILK

184.97

197.76

INWARD FRT & PROC. CHARGES

32.06

199.59

RAW MAT. FOR MILMAMIN

42.66

38.46

PURCHASE - FINISHED FEED

3,126.33

7,074.56

PURCHASE OF PACKAGED DRINKING WATER


TOTAL

33.83
23,936.04

32.08
31,543.94

milma

ANNUAL REPORT 2013 - 2014

41

SCHEDULES TO PROFIT & LOSS ACCOUNT FOR THE YEAR 2012-2013 & 2013-2014
PAYMENTS & BENEFITS TO EMPLOYEES

2012-13
2013-14
18

SALARIES TO MANAGERIAL STAFF

413.74

552.06

WAGES TO WORKERS

787.34

1,030.61

STIPEND TO APPRENTICES

6.42

7.53

OVERTIME

23.61

24.52

SALARY TO STAFF ON DEPUTATION

2.84

2.23

NIGHT SHIFT WAGES

0.37

0.52

DAILY WAGES

4.03

2.72

OTHER ALLOWANCES TO EMPLOYEES

0.07

0.31

SALARY - CONTRACT EMPLOYEES

27.59

35.20

LABOUR WELFARE FUND

0.04

0.03

EMPLOYERS'CONTR.TO P.F

115.79

132.56

CONTRIBUTION TO PENSION FUND

32.45

37.91

PF ADMINISTRATION CHARGE

13.41

15.78

D.L.I SCHEME

1.56

1.47

EDLI ADMINISTRATION CHARGES

0.59

0.66

BONUS

6.86

7.22

GRATUITY

3.00

12.53

EMPLOYERS'CONTR.TO E.S.I

19.36

23.90

STITCHING & FOOTWEAR

1.20

2.75

SUBSIDY TO EMPLOYEES

1.56

1.61

FESTIVAL ALLOWANCE

5.92

6.36

LEAVE ENCASHMENT

62.83

76.86

INCENTIVES TO EMPLOYEES

42

0.16

GROUP GRATUITY INSURANCE

218.94

391.76

STAFF WELFARE EXPENSES

21.76

26.26

PAY REVISION ARREARS

187.48

3.61

CANTEEN

8.37

9.31

UNIFORM & WASHING

1.50

2.68

MEDICAL INSURANCE PREMIUM

16.24

13.70

PERFORMANCE INCENTIVE

28.98

36.22

MD'S SALARY

15.68

19.60

MEDICAL REIMBURSEMENT

0.11

0.13

CONTRIBUTION HEADLOAD WORKERS


WELFARE FUND BOARD
TOTAL

0.19
2,029.83

0.11
2,478.88

ANNUAL REPORT 2013 - 2014

milma

SCHEDULES TO PROFIT & LOSS ACCOUNT FOR THE YEAR 2012-2013 & 2013-2014
MANUFACTURING EXPENSES

19
2012-13
2013-14

STORES CONSUMPTION
POWER & ELECTRICITY
FURNACE OIL & COCONUT SHELL
WATER FOR MANUFACTURING
GENERATOR EXPENSES
LAB. EXPENSES
AGMARK ISI EXPENSES
LEASE AND RENT
REPAIRS ELECTRICAL INSTALL.
REPAIRS PLANT & MACHINERY
REPAIRS TO FACTORY BUILDING
REPAIRS TO OTHER FACTORY ASSET
FACTORY MAINTENANCE(GENERAL)
R & M OTHER BUILDING
R&M LAB EQUIPMENTS
INSURANCE PLANT & MACHINERY
INSURANCE VEHICLE
INSURANCE STORES
INSURANCE CASH
TAXES & LICENSES
FREIGHT & HANDLING -INWARD
MISC. MANUFACTURING EXPENSES

94.90
276.13
284.38
0.66
29.37
15.11
3.39
0.02
1.29
52.64
4.78
0.15
5.24
0.62
0.66
5.14
0.14
0.96
0.12
6.84
30.43
1.01

91.93
288.80
321.95
0.81
31.84
16.70
2.21
1.95
73.42
37.56
0.24
7.14
3.42
1.42
5.15
1.28
0.11
7.09
40.82
2.33

TOTAL

813.98

936.17

20
SELLING & DISTRIBUTION
LOADING & FORWARDING CHARGES
118.36
132.55
CARRIAGE OUTWARDS
26.70
27.79
INCENTIVE TO WHOLESALERS
6.65
SPECIAL DISCOUNT
2.65
3.32
ADVERTISEMENT
14.87
48.16
SALES PROMOTION EXPENSES
10.63
41.17
PAYMENT TO TRANSP.CONTRACTOR
1,043.47
1,546.89
SALES INCENTIVE-APCOS STAFF
25.54
DISCOUNT TO APCOS
403.40
DISCOUNT TO DEALERS
50.25
DISCOUNT TO DRDA/SLBP
28.57
DISCOUNT TO MILMAMIN
2.02
DISCOUNT TO GRAMAPANCHAYATH
0.25
DISCOUNT TO OTHERS
1.87
SALES RETURN -CATTLE FEED
0.49
TOTAL
1,735.72
1,799.88
milma

ANNUAL REPORT 2013 - 2014

43

SCHEDULES TO PROFIT & LOSS ACCOUNT FOR THE YEAR 2012-2013 & 2013-2014
ADMINISTRATION EXPENSES

21

RENT-OFFICES
PRINTING & STATIONERY
POSTAGE & TELEGRAMS
EPABX MAINTENANCE
TELEPHONE:OFFICE & QTRS
MEMBERSHIP FEE & SUBSCRIPTION
SEMINAR, DELEGATE FEE ETC.
NEWS PAPERS & PERIODICALS
LOCAL CONVEYANCE
TRAVELLING EXPENSES
VEH.MAINT (ADMN & MARKETING)
FUEL FOR VEHICLES
ADVERTISEMENT TENDER
OFFICE MAINTENANCE
GARDENING EXPENSES
MISC.EXPENSES
SECURITY CHARGES
STATUTORY AUDIT FEE & EXP.
PROF. & LEGAL FEES
CONSULTANT'S FEES & EXPENSES
COMPUTER MAINTENANCE EXPENSES
BANK CHARGES
T.A./D.A. TO AUDITORS
ELECTRICITY CHARGES
INSURANCE,RENT, RATES,TAXES ETC
WATER CHARGES
REPAIRS & MANIT OTHER ASSET
TRAINING EXPENSES
COMPUTER-SOFTWARE
R&M QUARTERS
R&M COMPOUND WALL & OTHER BLDGS
R&M GENERAL
R & M OFFICE FURNITURE & FIXT.
R&M OFFICE EQUIPMENTS
GEN.BODY MEETING EXPENSES
BOARD MEETING EXPENSES
OTHER MEETING EXPENSES
T.A. TO MANAGING DIRECTOR
SITTING FEES
HONORARIUM TO CHAIRMAN

44

ANNUAL REPORT 2013 - 2014

milma

2012-13
0.08
12.68
3.31
0.06
7.06
-
0.15
0.34
0.53
18.05
1.81
4.10
5.89
4.40
1.29
2.26
25.37
35.09
4.47
0.45
3.20
5.95
1.57
4.49
0.83
0.19
1.08
0.52
0.02
-
3.89
0.85
0.03
0.41
4.00
0.78
1.70
2.18
0.47
2.40

2013-14
15.25
2.98
0.08
7.28
0.30
0.44
0.37
0.56
20.78
2.14
3.64
2.44
3.92
3.18
2.00
27.83
24.08
2.76
0.77
3.80
3.90
1.44
5.65
1.27
0.15
1.31
0.35
0.08
12.09
20.04
0.01
0.73
5.61
0.51
1.24
2.81
0.26
2.32

SCHEDULES TO PROFIT & LOSS ACCOUNT FOR THE YEAR 2012-2013 & 2013-2014
TA TO CHAIRMAN
ENTERTAINMENT EXP.
T.A. TO DIRECTORS
BAG CLEANING &BUNDL. CHARGE
HONORARIUM TO LECTURERS
HOSTEL MAINTENANCE
VEHICLE HIRING EXPENSES
TRAINEES BOARDING CHARGES
TA TO GUEST LECTURERS
TA TO TRAINEES
ISO 9002 EXPENSES
T.A. TO DIRECTORS - SEMINARS OUTSIDE STATES

TOTAL
OTHERS
LOSS ON SALE OF ASSET

22

1.47
0.28
3.15
3.12
1.14
0.02
9.13
3.20
0.14
0.01
0.27
0.15

184.03
0.17

1.44
0.14
4.41
3.31
1.03
0.06
13.33
4.19
0.15
0.31
0.19
3.97

216.90
-

TOTAL


0.17
TAXES & DUTIES
23
INCOMETAX
-
7.85
EXCISE DUTY
2.97
3.46
SERVICE TAX
39.83
57.57
TOTAL
42.80
68.88
PACKING MATERIAL CONSUMED
24
PACKING MAT. FOR FEED
469.24
604.29
PACKING MAT. FOR MILMAMIN
1.07
0.99
ST.THREADLINING & PRINT. CHA
4.92
5.18
PACKING MATERIAL-MILK &PROD.
333.61
388.30
TOTAL
808.84
998.76
INTEREST
25
INTEREST ON WORKING CAPITAL
35.31
10.10
INTEREST ON NDDB LOAN
18.37
12.78
INTEREST ON SOCIETY DEPOSIT
12.48
17.03
TOTAL
66.16
39.91

DEPRECIATION 26
202.26
257.34
DEPRECIATION 202.26 257.34
INCOME TAX
PROVISION FOR TAXATION
27
180.55
470.00
TOTAL
180.55
470.00

milma

ANNUAL REPORT 2013 - 2014

45

Pathanamthitta Dairy (TRCMPU)

Ernakulam Dairy (ERCMPU)

Wayanad Dairy (MRCMPU)

46

ANNUAL REPORT 2013 - 2014

milma

Cattle Feed Plant, Pattanakkad

Central Products Dairy, Alappuzha

Milma Training Centre, Thrissur

Cattle Feed Plant, Malampuzha


milma

ANNUAL REPORT 2013 - 2014

47

_ h-f-cpp.
h-f- F-hn-sS-bptm an-a A-hn-sS-bpv

\ap-v h-fcmw
Kerala Co-operative Milk Marketing
Federation Ltd.

Milma Bhavan, Pattom Palace P.O., Thiruvananthapuram - 695 004,


Tel: 0471-2555980-85, Fax: 0471-2555992
E-mail: milma@milma.com I Website: www.milma.com