Annual Report 2019-20 - NCDFI

Final - Annual Report - 2019-20 - Single Page - 05012021.cdrContents
Report - 2019-20 (English)
National Cooperative Dairy Federation of India Ltd4
Branch Oces
NCDFI, Near Gandhi Ashram
Erode
NCDFI, Nagar Manmad Highway
Ahmedabad
Opp. KVK Mahal, Vaniyanchithiram, Chennai 600 052
Phone: +91-7092922400
Rae Bareilly
Rahuri
Area Oce IDA House, Sector IV, R K Puram, New Delhi 110 022
+91-11-64998199 26181861
205, Annie Circle, Nr Ganesh Circle, Anand 388 001
SF-10 R C Complex, Nr Pushpakamal Hostel
Bakrol Road, Vallabh Vidhyanagar 388 120
M/s. Ujesh Teraiya & Associates, Chartered Accountants
Head Oce
NDDB D-Lab Campus, Post Box 79, Anand 388 001
+91-2692-288300 288399
Bankers
Ambavadi Branch, Ahmedabad 380 006
Cooperative Dairy Structure
To promote the dairy industry and the oilseeds,
vegetable / edible oil and vanaspati industry and other commodities on cooperative lines; and
To coordinate, help, develop and facilitate the working of the dairy and oilseeds growers’
cooperatives and aliated organisations dealing in commodities.
Objectives
State Milk Federations (27)
NCDFI
As on March 31, 2020
Board of Directors
7Annual Report 2019-20
Producers’ Federation Ltd
Madhya Pradesh State
Associate Members
Institutional Member
Company Ltd
Annual Report 2019-20
Report of the Board of Directors for the year 2019-20
th(Presented at the 50 AGM of NCDFI)
Product
Whole Milk Powder 25.94
Product-wise Quantities and Value
Hon'ble Members,
On behalf of Board of Directors, I welcome you all to t h
the 50 annual general meeting of NCDFI.
I now present before you the Annual Report and the
Audited Statement of Accounts of your federation
for the year 2019-20.
coordinate the sale of milk and milk products to
Institutions; facilitated online transactions of various
commodities at NCDFI eMarket; and worked for
genetic improvement of the cattle. NCDFI also
continued to utilize part of its surplus in the
developmental activities.
Institutional Sale
(MoD), Indo-Tibetan Border Police (ITBP), and Indian
Railway Catering and Tourism Corporation (IRCTC).
I am pleased to present some of the key
achievements of NCDFI, in this domain.
Supplies to MoD and ITBP
During the year, NCDFI coordinated the supply of
milk and milk products to 270 Army Supply Corp
Depots, 44 Indian Air Force, and 3 Indian Naval
Services Units under the Ministry of Defence.
Further, the requirement of Indo-Tibetan Border
Police was also met by the member cooperatives of
NCDFI.
Warana brand UHT Milk were supplied to MoD. Milk
product supplies were allocated to Bengaluru,
Indore, Kaira, Ludhiana, Mehsana, Patiala ,
Sangamner, and Warana Milk Unions; Mother Dairy
Bengaluru and Nandini Hi-Tech Plant. We are proud
to mention here that 110 cooperative dairies spread
across the country participated in the milk and milk
products supply. Contracts concluded during the
year were worth of 1,294 crores.
Annual Review Meeting: NCDFI annually convenes a
meeting between the dairy cooperatives and senior
officials to review the supplies, procedures, and
payments. Accordingly, a meeting was convened at
Meetings
Apart from the privilege and the business interest,
cooperatives that have been consistently supplying
to the Army have had tangible and intangible
benefits. Apart from serving the purpose of having an
assured market, it has helped in capacity building,
consistently improving the quality of products, in
creating goodwill, and also in the expansion of
markets. I urge our member dairy cooperatives to
wholeheartedly participate in this initiative.
New Delhi on June 26, 2019 which was chaired by
Major General Arvind Katoch, ADGST (SM),
Directorate General of Supplies & Transport, IHQ of
M o D . T h i s m e e t i n g w a s a t t e n d e d b y 6 0
representatives from the Ministry of Defence, NCDFI,
and various dairy cooperatives.
milk product supplies, NCDFI initiated a Quality
Control Meeting at Anand on December 27, 2019 to
discuss the quality control aspects of the dairy
products. The meeting was Chaired by Major General
Arvind Katoch, ADGST (SM), Directorate General of
Supplies & Transport, IHQ of MoD and attended by
45 representatives from the Ministry of Defence,
NCDFI, various dairy cooperatives and Centre for
Analysis and Learning in Livestock and Food (CALF).
Dairy Commodities
better returns to dairy cooperatives and in turn to
milk producers has been the prime focus of NCDFI.
One such initiative is NCDFI eMarket which has
immensely benefitted dairy cooperatives across the
Country. With the eAuction of dairy commodities,
the platform has created a benchmark for market
prices at the national level. I am happy to share that
during the year, eAuctions for milk were launched at
NCDFI eMarket. Further, services are extended for
procurement of cattle feed ingredients, fodder
seeds, edible oils, packing materials, chemicals,
sugar, etc. During the year, NCDFI eMarket also
extended its services to the Service Contracts such
as the hiring of labour, transport, godown hiring,
canteen services, etc.
eMarket were 15,777 MT SMP, 5,028 MT Butter, 585
MT WMP, 475 MT Cheese, 221 MT Whey Powder,
I express immense gratitude to the members for
routing their dairy commodity bulk sales through the
NCDFI eMarket. Their decision has resulted in the
realization of higher sale proceedings as the system
concluded the prices considering the supply and
demand scenario. I take this opportunity to urge all
members to consider exclusive bulk sales through
NCDFI eMarket.
25 MT Ghee apart from 4.77 crore litres of Raw Chilled
Milk (RCM) and 1.92 crore litres of Separated
Skimmed Milk (SSM). These transactions were done
at NCDFI eMarket through various types of auctions
i.e. 'Forward Auctions', 'Auction Sale', and 'Reverse
Auctions'.
Krushna, Maahi, Mahanand, Medha, Mother Dairy,
Nandini, Parag, Rajhans, Sagar, Sanchi, Saras, Sudha,
Verka, Vijaya, Vikas, Vita, and Warana. Though both
private and cooperatives are registered members on
the portal, it is only the cooperatives that are
allowed to sell dairy commodities on the portal.
NCDFI eMarket
We are consistently making efforts to update the Android application and have released updated versions of
NCDFI eMarket App periodically which enabled the users to remain updated with customized auction
information on a real-time basis. Further, NCDFI eMarket is publishing the results of eAuction in monthly 'Activity
Report' which is circulated to all members and is also available on the mobile application and website of NCDFI
eMarket. It gives larger publicity to the concluded trades and prices for different products apart from the
information on newly introduced commodities and services on NCDFI eMarket platform which further helps
cooperative buyers to get the products and services at much competitive prices.
Increased Transparency
NCDFI eMarket additionally offered support for procurement of Sugar, Edible Oils, Packing Materials, Compound
Cattle Feed, Fodder Seeds, Chemicals apart from Scrap sales, and also concluded Service Contracts such as Hiring
of Labour, Transport, Godown Hiring, Canteen Services, etc.
Besides the sale of milk and milk products, NCDFI eMarket also facilitates the procurement of all required agri
commodities for cattle feed plants. During the year, 47 cooperative cattle feed plants in the states of Andhra
Pradesh, Bihar, Gujarat, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha,
Tamil Nadu, Telangana, and West Bengal procured required cattle feed ingredients through NCDFI eMarket. These
ingredients included 2,60,825 MT Rice Bran/Polish, 2,04,664 MT Maize, 26,345 MT Cotton Seed Meal, 22,705 MT
Mustard Meal, 11,930 MT Wheat, 9,525 MT Coconut Meal, etc. A large and diversified supplier base facilitates the
cooperatives to get the required raw materials in time with competitive prices. Hence, many cattle feed plants are
in the process to procure raw materials through NCDFI eMarket.
During the year, total business transactions at NCDFI eMarket were to the tune of 2,047 crores
consisting of value-added dairy products worth of 595 crores, liquid milk worth of 208 crores, cattle
feed ingredients worth of 1,110 crores and 134 crores worth of other products.
Members
The total registered members on NCDFI eMarket platform were 1,789 as on March 31, 2020 represent the
participation from across the country. During the year, NCDFI arranged member meets at Mumbai,
Chennai and Erode to have their valuable inputs. Further, a meeting with the senior officials of the
Mother Dairy Delhi was convened at Anand to deliberate on extending the services of NCDFI eMarket. th
NCDFI also participated in the 48 Dairy Industry Conference at Jaipur where it had an exhibition stall for
promoting the activities of NCDFI eMarket.
Considering a larger and diversified member base, I urge the cooperatives to actively utilize the services
of NCDFI eMarket.
March - 16 March - 17 March - 18 March - 19 March - 20
171
390
612
905
1789
0
400
800
1200
i
NCDFI eMarket Meeting at Mumbai
To provide better access of good quality semen doses to the milk producers in the country, NCDFI has partnered
with NDDB Dairy Services for distribution of Frozen Semen Doses (FSDs) produced by Sabarmati Ashram
Gaushala (Gujarat), Animal Breeding Centre (Uttar Pradesh), Alamadhi Semen Station (Tamil Nadu), Rohtak Semen
Station (Haryana) and Rahuri Semen Station (Maharashtra). These semen stations are either owned or managed
by the NDDB Dairy Services.
These semen stations are equipped with the advanced and modern Semen Production facilities in the country
with sophisticated semen processing equipment adhering to stringent quality control tests. The semen straws
produced by these semen stations are marketed under the common brand name of 'SAG' which stands for
Superior Animal Genetics.
During the year 2019-20, combined sale from all these semen stations was 3.10 crore FSDs valued at 61 crores.
GENETIC IMPROVEMENT
17
I am pleased to inform you that during the year 2019-20 cumulative business transactions conducted by NCDFI
amounted to 3,402 crores which was 56.27% higher as compared to the previous year. This includes milk and milk
products sales to Institutional buyers worth of 1,294 crores, NCDFI eMarket transactions worth of 2,047 crores,
and sale of frozen semen doses worth of 61 crores.
TOTAL BUSINESS TRANSACTED
i
Training to Dairy Farmers
To supplement the income of dairy farmers by adopting organic and biodynamic farming, NCDFI and the National
Dairy Development Board (NDDB) jointly organized 5 days of training on Biodynamic Farming and Vegetable
Production at Bhaikaka Krishi Kendra, Anand for dairy farmers of North East region. Three batches were conducted
for 98 dairy farmers from the states of Sikkim, West Assam, West Bengal, Tripura, and Manipur.
Being an apex body of dairy cooperatives in India, NCDFI foresees the requirement to utilize part of its surplus in
spreading awareness among dairy cooperatives specifically in the areas of clean milk production, cooperative
governance, productivity of animals, artificial insemination, ration balancing, etc. and to train manpower to
enhance their performance and productivity.
NCDFI arrange AI Technician Meets, Stalls at Farmer Fairs, Training Programs, Farmer Meets, Seminars, Workshops,
Cooperative Conclaves, and Management Development Programs based on the industry need assessment.
DEVELOPMENTAL ACTIVITIES
AIT Meet at Rahuri
Workshop on Organic and Biodynamic Farming at Bhaikaka Krishi Kendra, Anand
19
Management Development Program
NCDFI sponsored a 3-day Management Development Program (MDP) in association with the Institute of Rural
Management, Anand (IRMA) for the Managing Directors and Senior Officers involved in NCDFI eMarket activities
of member dairy cooperatives on the “Applications of Digital Marketing to Gain Leadership Position in
Competitive Markets” at Goa. Senior officials of various dairy cooperatives spread across the country attended
this MDP.
To spread awareness on Artificial Insemination, NCDFI organized stalls at 17 different farmer fairs in the states of
Haryana, Maharashtra, Odisha, Punjab, Rajasthan, and Tamil Nadu.
Stalls at Farmer Fairs
th48 IDA at Jaipur
Farmer Meets
As a part of promotional activity, NCDFI in coordination with NDDB Dairy Services organized 15 farmer meets
which were attended by 1,346 farmers from across the country
State
Andhra Pradesh
To promote Artificial Insemination, NCDFI in coordination with NDDB Dairy Services organized 107 AI Technician
Meets which showed active participation by 3,047 technicians from various parts of the country
AI Technician Meets
Details of AI Technician Meets
Feedback
The consistent engagement of NCDFI with its members coupled with developmental initiatives provide an
opportunity to NCDFI to get valuable feedback from participants on issues pertaining to procurement,
processing, marketing, governance, policy, etc. NCDFI is continuously working on the feedback received from the
participants to address the needs of member cooperatives. I request the members to share their concerns and
suggestions with us so as to help in improving the format of these programs.
During the year, NCDFI organized a three-day Management Development Program (MDP) at Udaipur for 17
officers of NCDFI. This program helped them to understand the importance of motivation, communication, and
stress management to be more productive in the workplace. It also helped them to create awareness about
personality development and understand their roles and responsibilities from the managerial context much
better and also enhanced their ability to respond to customer needs. Apart from these, NCDFI employees were
also nominated to attend training programs, seminars, and conferences at premier institutions to help them
updated with the latest developments in the industry.
MANPOWER DEVELOPMENT
National Cooperative Dairy Federation of India Ltd 25
NCDFI continued to liaison with the Government on various policy issues. NCDFI will continue to engage with the
ministries like the defence, agriculture, cooperation, and railways on various pertinent issues of the dairy
cooperative sector. Consistent support and inputs of members for working out a continuous strategy for
liaisoning with various Government authorities will immensely benefit us to take up the relevant policy matters.
LIAISONING FOR COOPERATIVES
Shri Arif Mohammad Khan, Hon’ble Governor, Kerala
Shri Giriraj Singh, Hon’ble Minister of Fisheries, Animal Husbandry, and Dairying
Kerala Dairy Expo 2020, Trivandrum
Inauguration of New Establishments and Campus Beautification at Godavari Khore Milk Union
27
It gives me great pride to share that the NCDFI has been selected for 'Swaraj Awards 2020' under 'Best Farmer's
Cooperative (National)' category by Outlook Group. The award was presented by Shri Narendra Singh Tomar,
Hon'ble Minister of Agriculture & Farmers Welfare and Minister of Rural Development, Government of India
during 'Outlook Agriculture Conclave and Swaraj Awards 2020' held at NASC Complex ICAR, New Delhi on
February 24, 2020. We are deeply humbled by the recognition received, and express our earnest gratitude to the
organizers for their acknowledgment and honour for the work of NCDFI. The accolade will boost the morale of all
the stakeholders of dairy cooperatives and further catalyze the efforts of NCDFI which are headed for the
betterment of millions of dairy farmers.
AWARDS AND RECOGNITION
ACKNOWLEDGEMENTS
Mangal Jit Rai
I convey my gratitude to millions of milk producers and oilseeds growers who are the grassroot
members of the cooperatives affiliated to NCDFI. They continue to provide support to NCDFI's
activities.
I like to convey our special thanks to the Chairmen and officials of our member cooperatives who
have actively participated in different meetings and programs of NCDFI. They have always provided
us valuable support and feedback.
I gratefully acknowledge the continuing support we receive from the National Dairy Development
Board. I am grateful to the Institute of Rural Management, NDDB Dairy Services, Sabarmati Ashram
Gaushala, Animal Breeding Centre, Alamadhi Semen Station, and Rahuri Semen Station for their help
and cooperation.
I specially thank NCDEX eMarkets Ltd (NeML) and all members of NCDFI eMarket for their continued
support and guidance.
I take this opportunity to thank the Government of India, especially the Ministry of Defence, the
Ministry of Agriculture, the Ministry of Home Affairs, the Ministry of Railways, the Railway Board and
the Indian Railway Catering and Tourism Corporation (IRCTC) for their continuous help and support.
My thanks are due to our Bankers and Auditors for the services rendered by them.
A note of appreciation for the employees of NCDFI, it is through their hard work and devotion, that,
NCDFI could carry out its activities smoothly during the year.
Chairman
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the financial statements.
Management's Responsibilities for the Financial Statements
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial
statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material
misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor
consider internal control relevant to the Federation's preparation and fair presentation of the financial statements in order
to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriated of
accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
Management is responsible for financial statements that give a true and fair view of the financial position and financial
performance of the federation in accordance with generally accepted Accounting Standards issued by Institute of
Chartered Accountants of India. This responsibility includes the design, implementation and maintenance of internal
control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audit. We are conducting our audit in
accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
Auditors' Responsibility
The Members
We have audited the accompanying financial statements of National Cooperative Dairy Federation of India Ltd. which
comprise the Balance Sheet as at 31 March 20 , the Statement of Income and Expenditure for the year then ended, and a 20
summary of the significant accounting policies and other explanatory information.
To,
Independent Auditor’s Report
47
Opinion
a) In the case of the Balance sheet, of the state of affairs of the Federation as at 31 March 2020:
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial
statements subject to our comments and observation contained in the audit Memorandum, give the information required
by the Multi State Co-op Societies Act, 2002 and rules made there under in the manner so required and give a true and fair
view conformity with the accounting principles generally accepted in India.
Report on the Other Legal and Regulatory Requirements
We report that:
b) In the case of the statement of Income and Expenditure Account, of the profit for the year ended on that date:
a) We have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purpose of our audit;
b) In our opinion, proper books of accounts as required by law have been kept by the Federation so far
as it appears from our examination of those books;
c) The Balance Sheet, the Income and expenditure dealt with by this report in agreement with the Books
of accounts;
d) In our opinion and according to information given to us, there has been no material impropriety or
irregularity in the expenditure or in realizations of money due to National Cooperative Dairy
Federation of India Ltd (NCDFI);
e) In Our Opinion and according to information given to us, the transactions of NCDFI Ltd, which has
come to our notice, have been within the competence of NCDFI Ltd.
For Ujesh Teraiya & Associates
March 31, 2020 ()Particulars
for M/s. Ujesh Teraiya & Associates, Chartered Accountants
Proprietor | Membership No : 151692
Income & Expenditure Account
INCOME
Travelling and conveyance
Board members travelling
Loss on sale of assets (Net)
Training and manpower development
APPROPRIATIONS
Total 1,82,18,322 1,19,57,088
7. Provident Fund contributions are being remitted to Employees Provident Fund Organization.
4. Depreciation on fixed assets has been provided as per written down value method at the rates prescribed i n Income Tax
Rules.
9. Income tax provision comprises current tax provision and deferred tax provision. Current tax provision is made annually
based on the tax liability computed after considering tax allowances and deductions.
Deferred tax asset are recognised and carried forward to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax can be realised.
Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year
that originates in one period and is capable of reversal in one or more subsequent periods. Such deferred tax is
quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.
3. Fixed assets include all expenditure of capital nature and are stated at cost less depreciation.
5. Long Term Investments are valued at cost less provision for diminution other than temporary, in value, if any, as at the
Balance Sheet date.
1. These accounts have been prepared on historical cost basis.
6. In respect of Gratuity and Superannuation the Federation has set up NCDFI Limited Employee Group Gratuity Cum Life
Assurance Trust Fund and NCDFI Limited Contributory Superannuation Scheme, to which contributions have been
made.
2. a) All Income and Expenditure are recognized and accounted on accrual basis.
8. In respect of Leave Encashment for the staff of the NCDFI, the Federation is maintaining Group Leave Encashment Fund
with LIC.
b) Income from service charges has been accounted on completion of supplies or on receipt of service fee/ TDS
certificate from the supplying members, whichever is earlier.
1. Balances in accounts of sundry debtors and sundry creditors are subject to confirmation by the parties.
2. Previous years figures have been regrouped / rearranged to make them comparable to those of the current year.
Statement of Accounting Policies ( March 31, 2020 )
Notes Forming Part of the Accounts ( March 31, 2020 )
Dairy Plants of NCDFI Member Cooperatives
National Cooperative Dairy
+91-2692-288300 288399 [email protected] www.NCDFI.coop | www.NCDFIeMarket.com
NCDFIcoop company/ncdficoop ch it

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Annual Report 2019-20 - NCDFI