Annual Report

Palakkad Coconut Producer Company Ltd

For the year 2015-16

1 September 2016

keralacoconut.com

i

Contents

1 Corporate Information 1

1.1 List of Directors as on the date of AGM held on 29.09.2015 . . . . . . . . . . . . . 1

1.2 Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.3 Registered office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.4 CIN Number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Notice to members 2

2.1 Notes for Member’s attention: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2.2 Annexure to the notice: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3 Directors Report 9

3.1 Financial results: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.2 Divident: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.3 Market overview: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3.4 Capital: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.5 Directors: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.6 Deposits: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.7 Particular of employees: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.8 Energy Conservation, Technology Absorption and Foreign exchange outgo: . . . . . 10

3.9 Auditors: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.10 Directors responsibility Statement: . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.11 Appreciation: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3.12 Qualification by Auditors: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

4 Status of Agriculture and Value addition activities 12

4.0.1 Structure of PCPCL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

4.0.2 Replanting and Rejuvenation of Coconut Gardens . . . . . . . . . . . . . . . 12

4.0.3 Supply of biofertilizers and bio pesticides . . . . . . . . . . . . . . . . . . . 14

4.0.4 Drip Irrigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

4.0.5 Procurement of Coconut . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

4.0.6 Neera production and processing in Mangalore . . . . . . . . . . . . . . . . 15

4.0.7 Neera production in Palakkad . . . . . . . . . . . . . . . . . . . . . . . . . 15

4.0.8 Training to Neera Technicians . . . . . . . . . . . . . . . . . . . . . . . . . 16

4.0.9 Coconut Points . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

4.0.10 Kalpakashree debit card and term-loan . . . . . . . . . . . . . . . . . . . . 18

4.0.11 Link up with research Institutions . . . . . . . . . . . . . . . . . . . . . . . 18

4.1 Research and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4.1.1 Product innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

4.1.2 Technology innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

4.2 Role of Coconut Development Board . . . . . . . . . . . . . . . . . . . . . . . . . 19

ii

5 Management Discussion and Analysis Report 21

5.1 Industry scenario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

5.2 Opportunities: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

5.3 Threats & Concerns: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

5.4 Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

5.5 Internal control system and their adequacy . . . . . . . . . . . . . . . . . . . . . . 25

5.6 Discussion on financial performance . . . . . . . . . . . . . . . . . . . . . . . . . . 25

5.7 Material developments in resources . . . . . . . . . . . . . . . . . . . . . . . . . . 25

5.8 Cautionery statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

6 Corporate Governance Report 26

6.1 Company’s philosophy on code of governance . . . . . . . . . . . . . . . . . . . . . 26

6.2 Board of directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

6.3 Committee of board of directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

6.3.1 Audit committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

6.3.2 Nomination and remuneration committee . . . . . . . . . . . . . . . . . . . 27

6.3.3 Stakeholders relationship committee . . . . . . . . . . . . . . . . . . . . . . 28

6.3.4 Risk management committee: . . . . . . . . . . . . . . . . . . . . . . . . . 28

6.3.5 Code of conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

6.3.6 Familiarisation programme for directors . . . . . . . . . . . . . . . . . . . . 29

6.3.7 Board diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

6.4 Annual general meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

6.5 Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

6.6 General shareholders information . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

6.7 Certificate of compliance with code of conduct policy . . . . . . . . . . . . . . . . 33

6.8 Chief Executive Officer (CEO) and Chief Financial Officer (CFO) Certification . . . 34

7 Auditors certificate on Corporate Governance 35

8 Independent Auditors report 37

9 Balance sheet & Profit & Loss statement 45

10 Cash Flow Statement 48

11 Shareholding pattern 51

12 Annexure to Directors Report 59

iii

1 Corporate Information

1.1 List of Directors as on the date of AGM held on 29.09.2015

1. Pazhanimala Sudevan, S/o Pazhanimala Ponnu R/o 462A(6/301A), Chemmanamthode, At-

tayampathy, Muthalamada, 678507, Kerala, India, appointed on 26.6.2013

2. Thorakkattil Mohammed S/o Thorakattil Koyanni R/o 324, Thorakkatil 1, Alanallur, Man-

narkkad, 678582, Kerala, India, appointed on 26.6.2013

3. Kunjikrishnan Sasidharan S/o Kunjikrishnan R/o 543, 1, Perumatty, Chittur,678581, Kerala,

India, appointed on 26.6.2013

4. Arimboor Madam Ramachandran S/o Thenazhikkalam Sankunni Nair R/o 106 (5/506), Arim-

bur Madam, 3, Kalluvazhi, Pookottukavu,678634, Kerala, India, appointed on 26.6.2013

5. Maruthacode Kuttan Ramadas S/o Kuttan R/o 650, 7, Erimayur, Alathur, 678546, Kerala,

India, appointed on 26.6.2013

6. Thomas S/o Joseph, R/o 674, Oulikkal, 5, Kanhirapuzha, Mannarkkad,678591, Kerala, India,

appointed on 26.6.2013

7. Sankaran Radhakrishnan, 18A, Neelambari, Kadakurussi, Kannadi, Palakkad, Kerala,678701,In-

dia, appointed on 29.9.2015

8. Joseph Nedungattu Luckose, Nedungattu, Pullisseri, Karakurissi, Palakkad, Kerala, 678582,In-

dia, appointed on 29.9.2015

9. Sethumadhavan Krishnan, 272, Pattanchery, Chittur, Palakkad, Kerala, 676534,India, ap-

pointed on 29.9.2015

10. Pulintharakunnel Chandy Rajan, 278, Pulintharakunnel, Thachanpara, Palakkad, Kerala,678591,In-

dia, appointed on 29.9.2015

11. Rama Sukumaran, Kongamparambil, Kainikoda, Thenkara Post, Mannarkkad-2, Palakkad,

Kerala, 678582,India, appointed on 29.9.2015

1.2 Auditors

M/s A. K. Bagadia & Co, 37, Sopariwala House, 293 Princess street, Marine lines, Mumbai, 400002

1.3 Registered office

10/728A, Little Tree, Urkulam Muthalamada, Palakkad. Kerala,India, 678507

1.4 CIN Number

U01133KL2013PTC034397

1

2 Notice to members

Notice is hereby given that the 4th Annual General Meeting of the members of PALAKKAD CO-

CONUT PRODUCER COMPANY Ltd will be held on Thursday, the 22nd September, 2016 at

10 AM at Registered Office, Urkulam, Govindapuram P.O Muthalamada, Palakkad, Kerala, PIN

678507 to transact the following businesses:

AS ORDINARY BUSINESS

1. To receive, consider and adopt the Audited Balance Sheet and the Statement of Profit &

Loss Accounts for the year ended 31st March, 2016 together with the Report of the Board of

Directors and the Auditors thereon.

2. To ratify appointment of Statutory Auditors to hold office from conclusion of this meeting

until the conclusion of next Annual General Meeting and to fix their remuneration.

3. To appoint a Director in place of Arimboor Madam Ramachandran, S/o Thenazhikkalam

Sankunni Nair,(holding DIN 06599043) who retires by rotation and being eligible, offers himself

for re-appointment.

4. To appoint a Director in place of Pazhanimala Sudevan, S/o Pazhanimala Ponnu (holding

DIN 06543421) who retires by rotation and being eligible, offers himself for re-appointment.

5. To appoint a Director in place of Thorakkattil Mohammed S/o Thorakattil Koyanni, (holding

DIN 06598951) who retires by rotation and being eligible, offers himself for re-appointment.

6. To appoint a Director in place of Maruthacode Kuttan Ramadas, S/o Kuttan,(holding DIN

06599486) who retires by rotation and being eligible, offers himself for re-appointment.

7. To appoint Sethumadavan, S/o Krishnan,(holding DIN 07373804) who retires by rotation and

being eligible, offers himself for re-appointment.

8. To appoint Joseph, S/o Lukose,(holding DIN 07333913) who retires by rotation and being

eligible, offers himself for re-appointment.

9. To appoint Radhakrishnan, S/o Sankaran,(holding DIN 07332896) who retires by rotation

and being eligible,offers himself for re-appointment.

10. To appoint Rajan, S/o Chandy,(holding DIN 07393392) who retires by rotation and being

eligible, offers himself for re-appointment.

11. To appoint Rama Sukumaran,W/o Sukumaran,(holding DIN 07471441) who retires by rota-

tion and being eligible, offers herself for re-appointment.

12. To appoint Jacob Kariyampalli Chacko,S/o Chacko 265, Kariyampalli House, Manakkalkad,

Malampuzha-2, Palakkad, Kerala, 678651, India, as Director in place of Thomas S/o Joseph,(hold-

ing DIN 06599021) who retires by rotation

2

13. To appoint Krishnan Ravindran,S/o Krishnan, Mele Ezhuthani, Vandithavalam, Palakkad,

Kerala, 678534 India, as Director in place of Kunjikrishnan Sasidharan S/o Kunjikrishnan,

(DIN 06598994) who retires by rotation

14. To appoint Madhavan, S/o Raman, Mattummal, Manikkasseri, Kongad-1, Palakkad, Kerala,

678631, India as a new Director

AS SPECIAL BUSINESS

15. To Consider and if thought fit, to pass with or without modifications, the following resolution:

RESOLVED THAT the approval of the members of the Company be and is hereby accorded

to issue further 50,000 number of shares of Rs. 100/- each aggregating to Rs 50 Lakhs of the

Company without premium, using the equity grant given to the Company by Government of

Kerala through the Kerala State Financial Corporation, as per the norms laid out in the related

guidline, to be offered to various COCONUT PRODUCER SOCIETIES who are the existing

shareholders of the Company, in terms of and subject to the provisions of the Companies Act,

2013 and any rules made there under and the provisions of the Memorandum of Association

and Articles of Association of the Company.

FURTHER RESOLVED THAT the Board of Directors be and is hereby authorised to do all

the needful in the matter including issue and allotment of shares, informing the office of the

Registrar of Companies and such other and further things that the Board feel may feel it to

be necessary or expedient to do so in the interest of the Company.

On behalf of the Board of Directors

Mohammed TK

Chairman

Place:Palakkad.

Date: 1st September, 2016

3

2.1 Notes for Member’s attention:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED

TO APPOINT A PROXY/PROXIES TO ATTEND AND VOTE ON A POLL INSTEAD OF

HIMSELF/ HERSELF. SUCH A PROXY/PROXIES NEED NOT BE A MEMBER OF THE

COMPANY.

A person can act as proxy as per and subject to the provisions of the Articles of Association

of the Company, on behalf of member if authorized by the concerned member.

The instrument appointing the proxy should, however, is deposited at the Registered Office

of the Company not less than 48 hours before the commencement of the Meeting. A Proxy

Form is annexed to this Notice.

2. An explanatory Statement pursuant to Section 102(1) of the Companies Act, 2013 relating

to Special Businesses to be transacted at the Annual General Meeting is attached hereto.

3. The Register of Members and Share Transfer Books of the Company will remain closed

from 16th September, 2016 to 22nd September, 2016 (both days inclusive).The dividend, if

declared, will be paid to those members whose name appears on the Register of Members of

the Company as on 23rd September, 2016.

4. To support the Green Initiative, the Members who have not registered their e-mail addresses

are requested to register the same with Registrars and Share Transfer Agent/Depositories.

5. Electronic copy of the Annual Report As part of the Green Initiative of the Ministry of Corpo-

rate Affairs, the members who wish to receive notice/documents through e-mail may kindly in-

timate their e-mail addresses to the Company’s Compliance Officer at ceo@keralacoconut.com

6. Pursuant to the provisions of Section 205A(5) and 205C of the Companies Act, 1956, the

Company has not to transfer the unpaid or unclaimed dividend for a period of seven years

from the date of transfer to unpaid Dividend Account of the company to be credited to the

Investor Education and Protection Fund (the IEPF). Accordingly, no amount is required to

be transferred to the Investor Education and Protection Fund from time to time. All persons

are requested to note that no claims shall lie against the Company or the said fund in respect

of any amounts which were unclaimed and unpaid for a period of 7 years from the dates that

they first become due for payment and no payment shall be made in respect of any such

claims.

7. Members are requested to send all their documents and communication pertaining to shares to

the registered office of the Company at their address Little Tree, Urkulam, Govindapuram.P.O,

Muthalamada, Palakkad, Kerala,India, PIN 678507.

8. Members holding shares in the same name under different ledger folios are requested to apply

for consolidation of such Folios and send the relevant share certificates to the registered office

of the company for their doing needful.

4

9. Members are requested to notify change in address, if any, immediately to the registered office

quoting their folio numbers.

10. It is now mandatory to furnish a copy of PAN card to the Company or its RTA in the following

cases viz. Transfer of shares, Deletion of name, Transmission of shares and Transportation of

Shares. Shareholders are requested to furnish copy of PAN card for all the above mentioned

transactions.

11. Details in respect of the Directors seeking appointment/re-appointment at the Annual General

Meeting, forms part of the notice. The Directors have furnished the requisite declarations for

their appointment/re-appointment.

12. To prevent fraudulent transactions, members are advised to exercise due diligence and notify

the Company of any change in address as soon as possible.

13. Members may also note that the Notice of the 4th Annual General Meeting and the Annual

Report 2015-16 will also be available on the Company’s website www.keralacoconut.com for

being downloaded. The physical copies of the aforesaid documents will also be available at

the Company’s Registered Office for inspection during normal business hours on working days

till the date of the meeting. Even after registering for e-communication, members are entitled

to receive such communication in physical form, upon making a request for the same.

On behalf of the Board of Directors

Mohammed TK

Chairman

Place:Palakkad.

Date:1st September, 2016

5

2.2 Annexure to the notice:

1. Explanatory Statement as required under Section 102 (1) of the Companies Act, 2013 & the

Listing Agreement setting out all material facts relating to the Special Business:

ITEM NO 15 & 16

Consequent to implementation of guidelines of Equity Grant by Government of Kerala through

Kerala State Financial Corporation, consent of the Company is required approval of members

by way of a special resolution to issue proportionate shares to existing share holders as on 31

March 2015 who had also applied for the same in prescribed format.

The Board of Directors recommends the Resolution at Item No 15 & 16 or our approval as

Special Resolutions, Directors, Key Managerial Personnel and their relatives who are members

of the Company, may be deemed to be concerned or interested in this resolution to the extent

of their shareholding in the Company to the same extent as that of every other member of

the Company.

2. Details of Directors seeking appointment/re-appointment at the ensuing Annual General Meet-

ing fixed on Tuesday, the 22nd September, 2016 as required are given hereunder :-

Name of Director Sudevan P Mohammed T K Ramadas M K

Date of Appointment 26.6.13 26.6.13 26.6.13

Expertise in specific func-

tional areas

Organising farmers Organising farmers Organising farmers

List of other Director-

ship held excluding for-

eign Companies, Compa-

nies under section 25 of

the Companies Act 1986

and private Companies

Nil Nil Nil

Chairman/Member of the

committees of the Board

of other Companies in

which he/she is a Director

@

Nil Nil Nil

No of Shares held in Com-

pany

100 equity shares of

Rs. 100/- each

100 equity shares of

Rs. 100/- each

100 equity shares of

Rs. 100/- each

Relationship between Di-

rectors Interse*

Nil Nil Nil

6

Name of Director Ramachandran AM Radhakrishnan S Joseph NL

Date of Appointment 26.6.13 29.9.16 29.9.16

Expertise in specific

functional areas

Organising farmers Organising farmers Organising farmers

List of other Director-

ship held excluding for-

eign Companies, Com-

panies under section 25

of the Companies Act

1986 and private Com-

panies

Nil Nil Nil

Chairman/Member of

the committees of the

Board of other Compa-

nies in which he/she is

a Director @

Nil Nil Nil

No of Shares held in

Company

100 equity shares of Rs.

100/- each

Nil Nil

Relationship between

Directors Interse*

Nil Nil Nil

Name of Director Sethumadhavan K PC Rajan Rama Sukumaran

Date of Appointment 29.9.16 29.9.16 29.9.16

Expertise in specific

functional areas

Organising farmers Organising farmers Organising farmers

List of other Director-

ship held excluding for-

eign Companies, Com-

panies under section 25

of the Companies Act

1986 and private Com-

panies

Nil Nil Nil

Chairman/Member of

the committees of the

Board of other Compa-

nies in which he/she is

a Director @

Nil Nil Nil

No of Shares held in

Company

Nil Nil Nil

Relationship between

Directors Interse*

Nil Nil Nil

7

@ Committee positions only of Audit Committee and Shareholders/Investors Grievance Com-

mittee in Public Companies have been considered.

* Under the Companies Act, 2013.

On behalf of the Board of Directors

Mohammed TK

Chairman

Place:Palakkad.

Date:1st September, 2016

8

3 Directors Report

To,

The Shareholders

It is with pleasure we present to you our 3rd Annual Report along with Audited statement of

accounts for the accounting year ended 31st March, 2016.

3.1 Financial results:

This is the 3rd year of operation of the company. During the year under review the company incurred

a net operating loss of Rs 18,73,472/- (Previous Year, net profit of Rs 5,06,373) after providing for

Rs.5,35,580/- for amortization of research & development exp. (previous year Rs.5,32,330/-), and

writing of pre-operative expenses of Rs.1,00,976/- and after providing for depreciation Rs.4,94,758/-

(Previous Year Rs 88,556).

After making provisions for providing for deferred tax liability of Rs.3,65,273/- (previous year

Rs.77,408/-) and taxation for the year of Rs 6,814/- (Previous Year Rs 1,08,376) the company has

carried over the net loss of Rs 21,68,151/-(Previous Year, a profit of Rs 3,20,589/-) for appropria-

tion as follows:-

NET LOSS AFTER TAX AVAILABLE FOR APPROPRIATION 21,68,151/-

BALANCE CARRIED OVER THE BALANCE SHEET 21,68,151/-

During the period under review the company has achieved sales of Rs 178.30 lacs (Previous Year

Rs 96.80 lacs).

3.2 Divident:

Your directors are not recommending a dividend for the year ended 31st March, 2016 (Previous year

at the rate of 1%, Rs 2,09,785)

3.3 Market overview:

Being an industry dependent on whether its future is dependent on the growth of coconut produc-

tions year after year. The main product Neera is cool drink and is facing a considerable dip in sales

during the monsoon. The impending drought is raising more concern about the production of Neera

during the coming summer. The drought is also have serious implication for coconut production.

The company will be taking up the sale of tender coconuts and its derivatives in the coming months

in view of this grim situation in addition to the ongoing sale of cold pressed coconut oil.

9

3.4 Capital:

During the year the company has raised its share capital to Rs.329.34 lakhs by issue and allotment

of 48,030 equity shares of face value of Rs.100/- each as fully paid-up with a premium of Rs.10/- per

share. Out of the above issued capital a sum of Rs.54,76,352/- are calls in arrears as on 31.3.2016.

3.5 Directors:

Mr.Ramadas MK, Mr.Ramachandran AM, Mr.Mohammed TK, Mr.Sudevan P, Mr.Radhakrishnan

S, Mr.Joseph NL, Mr.Rajan PC, Mr.Sethumadhavan K, & Mrs.Rama Sukumaran, Directors of the

Company who retires by rotation and being eligible offers themselves for re-appointment, which is

considered to be in the interest of the Company.

3.6 Deposits:

The Company has not accepted any deposit from the public during the year under review.

3.7 Particular of employees:

The particular of employees as required under section 217(2A) of the Companies act.1956 is not

given, since no person/director of the Company draws remuneration in excess of the limit as pre-

scribed in the above section during the year ending 31.03.2016 (Previous Year Rs NIL)

3.8 Energy Conservation, Technology Absorption and Foreign exchange

outgo:

The information relating to Energy Conservation, Technology Absorption and Foreign exchange

Earnings and Outgo as required to be disclosed under the Companies (Disclosure of particulars in

the Report of Board of Directors) Rules,1988 is given in Annexure forming part of the report.

3.9 Auditors:

The Auditors of the Company M/s A.K. Bagadia & Co., Chartered Accountants, retire at this

Annual General Meeting and eligible for re-appointment. You are requested to reappoint them as

auditors and to fix their remuneration.

3.10 Directors responsibility Statement:

Further report as required under section 217(2AA) of the Companies act.1956 are as under:-

1. We report that in the preparation of annual accounts the applicable accounting statement

had been followed along with proper explanation relating to material departures.

10

2. We had selected such accounting policies and applied them consistently and made judgements

and estimates that are reasonable and prudent so as to give a true and fair view of the state

of affairs of the company at the end of the financial year and of the Profit or Loss of the

company for that period.

3. We have taken proper and sufficient care for the maintenance of adequate accounting records

in accordance with the provision of the Companies act 1956 for safeguarding the assets of the

Company and preventing and detecting fraud and other irregularities.

4. We have prepared the annual accounts a going concern basis.

3.11 Appreciation:

Your Directors wish to place on record the appreciation for the continued support received from

the Producer Farmers, Banks - Dhanalxmi Bank, State Bank of Travancore, Canara Bank, Kerala

Gramin Bank and Kerala State Financial Corporation, Customers, Suppliers, Shareholders and other

business associates for their valuable contribution in the growth of the organization.

The research institutes CFTRI and CPCRI are playing a much larger role in the activities of the

company than visible. We place our appreciation for their commitment to the cause of farmers.

The greatest and staunchest supporter for all these activities during 2015-16 was the Coconut

Development Board headed by the Chairman Sri T K Jose IAS. We sincerely thank them for all

their support

Your Directors are also pleased to record their appreciation for the dedication and contribution

made by employees at all levels for their compliance and hard work forward to their support in future

as well.

3.12 Qualification by Auditors:

The Statutory Auditors of the company has commented on certain points which are self-explanatory

in nature.

On behalf of the Board of Directors

Mohammed TK

Chairman

Place:Palakkad.

Date:1st September, 2016

11

4 Status of Agriculture and Value addition activities

Coconut has an important place in the Indian culture and has been produced here since time

immemorial. Currently, India holds the third place in the list of major coconut producing countries

of the world. Coconut production in India was. 21,665.19 million nuts in 2013-14. The area under

coconut cultivation is around 2.14 million hectares in the country. The states that are important

producers of this fruit and their annual average production figures are as follows: 1. Tamil Nadu

(6917.25 million nuts) 2. Kerala (5968.01 million nuts) 3. Karnataka (5041.15 million nuts) 4.

Andhra Pradesh (1828.46 million nuts) 5. West Bengal (370.83 million nuts) 6. Orissa (324.93

million nuts) 7.Gujarat (295.03 million nuts) 8. Maharashtra (187.47 million nuts).

Kerala, the second largest producer of coconuts in India, accounts for around 27.55 per cent of

the countrys total production. Coconut oil is obtained from the copra of the nut with 58 to 62 per

cent recovery rate. Regarding the area covered under coconut production, Kerala again stands first

among the other major coconut producing states.

The company is formed for ensuring a better price for the farm produce and to support the

farmers in their agriculture operations. Let us have a look at these operations.

4.0.1 Structure of PCPCL

Palakkad Coconut Producer Company Limited (PCPCL) is a Farmers Producer Company (FPC),

of Palakkad District with a three tier structure. In the primary structure, around 40 to 100 coconut

farmers within a specific geographic borderlines with about 4000 to 10000 coconut trees are brought

together to form a Coconut Producer Society (CPS). Twenty or more CPSs in a Gram Panchayat or

in a Block Panchayat can form a Federation of Coconut Producer Societies (CPF). These entities

are registered under charitable societies act relevant to the area in District Registrar Office, and

then with Coconut Development Board. An umbrella Farmers Producer Company (FPC) is formed

by grouping such federations (15 to 30) and constituent CPSs. Now PCPCL has 25 federations

with 453 coconut producer societies with around 25,000 farmers and a total of 18,00,000 palms

under its umbrella. Out of these, the primary societies, CPSs are the shareholders of the company.

4.0.2 Replanting and Rejuvenation of Coconut Gardens

This project was envisaged by Coconut Development Board to improve the productivity of coconut

palms through a programme of cutting and removing the old, senile, unproductive and disease

advanced palm population, replanting with quality seedlings and rejuvenation of the existing gardens

through an integrated package of practices.

The prevalence of old and senile palms, poor genetic base of the planting material over populated

stands of both coconut and other trees in the homestead, poor attention given to the crop and

attacks of pest and diseases are the major reasons for the low productivity. One of the strategies to

vitalize the coconut sector is to improve the general agricultural base with large scale rejuvenation

of the coconut gardens.

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The productivity of coconut is just 7486 nuts per hectare in Kerala but it is 14872 nuts per

hectare in the neighbouring state of Tamil Nadu. Obviously lot has to be done in this aspect in

Palakkad and Kerala.

The company spearheaded the project implementation in Palakkad District, and all the Feder-

ations affiliated to the company actively participated in the Replanting and Rejuvenation project.

During 2013-14, 39,983 number of palms, in 2014-15, 20364 number of palms and in 2015-16, 3128

number of palms were removed under this scheme with the financial assistance of Rs 500 per palm

totalling to Rs 3.17 crores.

Company monitored this work and provided documentation in addition to actually employing

skilled labourers on a contract basis to cut the marked palms since the CDB was providing the funds

after they were actually cut. It is extremely regretted that many farmers - mainly from Ozhalapathy,

Kozhinjampara and Alathur federations - did not reimburse the expenses incurred by the company

for this work after getting reimbursement from CDB so far. The total outstanding on this regard is

Rs 23.28 lakhs.

Quality planting material is another key to success in the cultivation of any crop especially

in the case of perennial crops like coconut where yield can be realized only after a long period.

Maithri - a NGO entrusted by Coconut Development Board with a project for producing hybrid and

quality planting materials is associated with PCPCL for providing these to CPSs. During 2014-15,

about 3500 hybrid seedlings and 12000 dwarf seedlings of good quality were distributed to coconut

farmers in Palakkad. Maithri had distributed 9845 hybrids and 18697 dwarf seedlings (Total 28542)

to various Coconut Producers Federations under during 2015-16. An amount of Rs 11.41 Lakhs

is pending to Maithri from CDB as the subsidy for these seedlings.An amount of Rs 5.20 Lakhs is

pending from various CPSs and CPFs.

Another component of this programme was the distribution of inputs to the farmers. Fertilisers

worth Rs 9.92 crores were distributed for 9.01 lakh palms during 2013-14 benefiting 9909 farmers of

187 CPSs. In 2014-15 fertilizers worth Rs 5.65 crores were distributed for 5.13 lakh palms benefiting

7669 farmers of 108 CPSs. This is in addition to the LoDP in which 1170 farmers of 18 CPSs got

benefit for 72,000 palms in 2013-14 and 2014-15.

But the allocation for CDB during 2015-16 and 2016-17 to our farmers for this programme is nil

so far. Fertilizers worth Rs 22.66 crores are pending distribution for the approved projects. This had

resulted in a very serious situation for member farmers who are reeling under consecutive droughts

and drastic decline of prices for all major agricultural produce - coconut, rubber and spices. The

non release of inputs for the approved projects by the CDB had seriously affected the credibility of

the three tier system of coconut farmer organisations of PCPCL .

Company took up fertilizer distribution license so as to involve directly in this programme in the

coming years if it comes through.

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4.0.3 Supply of biofertilizers and bio pesticides

Supply of necessary nutrients is essential for the growth and productivity of plants. Bio-fertilizers

and bio pesticides reduce the use of chemical fertilizers and pesticides which are harmful to the

environment and humans. They provide eco-friendly organic agro-input and are more cost-effective

than chemical fertilizers and pesticides. PCPCL has a tie with Gujarat based bio fertilizer initiative

-Nano Agro Science Co-operative Society Ltd. (NASCOM) and various bio fertilizers and bio

pesticides for coconut trees were made available to farmers at a reduced rate. About Rs 2800 is

required to use a complete set of bio fertilizers for an acre of coconut plantation in an year.

The plans to bring more farmers under this scheme and initiate organic certification process

so that their produce will fetch a premium price in the market is yet to take off. The entire plan

only received look warm response so far. Lack of interest for CPS and federation leaders and non

payment of the members for the supplied fertilizers are the main constraints.

4.0.4 Drip Irrigation

Drip irrigation is todays need because water resources are fast diminishing. The drip irrigation

system delivers a measured quantity of water at the root zone of each plant at regular intervals.

This is to ensure that the plants do not suffer from stress or strain of less and over watering. Apart

from saving in water this enhances the productivity of the plant also. PCPCL has made a tie up

with major drip irrigation system manufacturers. PCPCL bought the materials from them at a bulk

rate and started distributing it to the farmers. Willing farmers were able to install the system at

20% less cost than the market rates.

Company was able to get the support of State Horticulture mission in implementing the pro-

gramme but failed to scale it up. The physical achievement is at 112 acres only against the planned

1000 acres. The coming months is going to be most critical for coconut farmers of the district.

The unprecedented shortage of (40%) rainfall for the second year is going to be catastrophic for

the member farmers. The willingness and the capacity of CPS/Federation officials is going to be

tested on this regard.

4.0.5 Procurement of Coconut

During 2015-16 the operations were scaled up. Company was consistently buying coconuts from

member farmers at a minimum of Rs 16 per kg (being the NAFED support price) or Rs 2 higher

than the market rate, whichever is higher. The price is being offered to the dehusked coconuts

delivered at the Muthalamada dryer with an average credit period of 30 days.

The Company processes coconuts bought at its facilities in Muthalamada. The processing is

done using hot air and devoid of the application of sulphur and smoke. The processed copra is

converted to oil through cold pressing and expeller and sold through the coconut points under the

brand name of ’Pamfresh’.

An innovative marketing using social media is giving rick dividends from the urban centres of

Thrissur and Eranakulam. In these areas Company is making home delivery of its premium oil.

Member farmers are being requested to give the details of friends and relatives residing in these

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areas so that Company representatives can approach them. During the last year coconuts worth Rs

24 lakhs were bought and 17.74 tons of coconut oil were sold in the market.

The effort to sell the economy oil to member farmers through the CPSs is yet to gain momentum.

If this can be achieved PCPCL will be in a position to procure produce from the member farmers

at a premium price.

Company can procure coconuts at a rate in which the oil is being sold. Discussions with Govt.of

Kerala to declare all Coconut FPCs in Kerala as procurement agencies for coconut on par with

Grama Panchayat Agriculture Offices are in the final stage. Govt. is insisting on the processing of

the husk which remains as the sole remaining hurdle for PCPCL.

The Company plan to scale up this operation substantially in this year due to higher demand of

pure, cold pressed and unadulterated coconut oil.

4.0.6 Neera production and processing in Mangalore

The Project is moving very slowly mainly because of the legal hurdles to sell processed or unprocessed

Neera in Karnataka. However decisions are expected in the coming months to change the scenario.

4.0.7 Neera production in Palakkad

1. Neera Plant in Palakkad

The vascular sap collected from immature unopened coconut inflorescence is popularly known

as Neera in fresh form. It is a sugar containing juice and is a delicious health drink and a

rich source of sugars, minerals. The high nutritive value of Neera makes it an excellent health

drink. Palm honey and Palm sugar, by product extracted from Neera, with low Glycemic

index have high export potential.

The company is in the process of setting up a Neera processing plant at a cost of Rs 8.9 crores

at Idukkipara, Muthalamada where Neera would be processed and bottled. Kerala Financial

Corporation had approved a loan of 5.46 crores for a proposal. The plant also includes a

separate unit for manufacturing of palm sugar and syrup. This was commissioned at a cost

of Rs 2.74 crores by 31st March 2016. The application for subsidies Rs 50 lakhs each from

CDB and Govt.of Kerala were submitted simultaneously.

The processing of these applications at CDB is at stand still since the exit of Shri TK Jose

IAS as Chairman on 19th May 2016. The application to Govt. of Kerala were processed by

mid June by the concerned officials but remains frozen since that. This had put us in to more

crises. This is despite a visit by Honourable Minister for Agriculture, Shri Sunil Kumar to the

plant on 29th July 2016.

The proposed bottling plant is based on the technology developed by CFTRI and has capacity

of processing 1,500 litre Neera per hour. The building plan is yet to get approval from

Muthalamada Grama Panchayat even though the application was submitted in October 2015.

It had crossed several hurdles from District Town planner and Department of Fire and Rescue

in addition. PCPCL is hoping that the Panchayat will accord the sanction in the immediate

future.

15

The foundation work is completed and the super structure is fabricated and kept at the

site. Centrifuge with 1500 LPH capacity worth Rs 33 lakhs is ordered and ready for delivery.

Bottling plant worth Rs 98 lakhs is ordered and ready for delivery. Flash pasteurization plant

worth Rs 30 Lakhs is negotiated but not ordered due to scarcity of funds. So far Rs 50 lakhs

had been spent on building and advance for the above machinery.

PCPCL hope to start bottling of Neera from this plant by 31 December 2016 if the sufficient

equity - at least call in arrears were mobilized and dues from the member farmers on various

activities - palm cutting etc. were collected. If the plant starts on time that will be game

changer - enabling the Company to scale up production since the product can be sold across

India throughout the season and will make it financially viable within months of commercial

operation. This will also enable to scale up the neera production to at least 50% of the

farmers in the coming year.

2. Cold chain and storage

Company had mastered the cold chain process of Neera during the last two years. The Cold

storage at Muthalamada along with a portable one at Malampuzha and two reefer vehicles

keep the system running. The introduction of more innovative palm top boxes at a fraction

of earlier cost made the whole process more economic.

But the reduction of per palm production during summer and excess production during mon-

soon - just the opposite of market trends is yet to be managed fully. However all Neera

produced during the monsoon can be kept as honey using the newly commissioned vacuum

evaporation plant.

Absence of cold storages and ice production facilities in the Western federations are the other

major challenge which is affecting the economy of Neera production in these areas. Seeking

fresh funding and installing the required capital assets will be of prime importance once the

bottling plant is commissioned.

4.0.8 Training to Neera Technicians

As the Neera is a highly perishable product, tapping of neera requires special care. The touch by

hand is avoided and the sap is never exposed to atmosphere and subsequently to the insects and

largely to the microbes. Proper training of persons involved in this operation is very essential. A

42 day residential training was given to the selected persons from various federations. 200 persons

were trained under this programme in 2014-15. The programme is partly supported by Coconut

Development Board. Even though Government of Kerala had declared a special programme to

support these trainings, it is yet to be materialized.

In 2015-16 another 160 persons were trained under the same programme. One batch consisting

of natives of Assam and another 100 consisting of women. Both the programmes failed to achieve

the objectives. All newly trained technicians started tapping Neera at the peak of summer, just

after the completion of training. They were forced to stop due to low production and resultant low

income. Company was not in a position to subsidise the production for the first few months which

would have altered the whole scenario. Now efforts are being made on this direction.

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Value of Neera produced during 2015-16

No Federations Value of Neera produced in Rupees

1 Edathanattukara 1189823

2 Thenkara 214607

3 Karakurissy 591949

4 Erimayur 41925

5 Kuzhalmannam 194432

6 Malampuzha 1019600

7 Kozhinjampara 562147

8 Perumatty 2128743

9 Nalleppully 364735

10 Kanjirapuzha 92428

11 Kollengode 280903

12 Muthalamada 1570688

Total Rs 8251984

4.0.9 Coconut Points

The company has started the setting up of sales outlets in major urban centres and towns in

the districts of Palakkad, Thrissur & Eranakulam Districts. This would enable the company earn

sufficient revenue through sales, while maintaining a significant visible presence in the soft drink

retail market. The ’Coconut Points are either in the form of permanent shops or semi-permanent

fabricated stall situated on leased/rented land. Each outlet is equipped with a 200 litre deep freezer

and a refrigerated juice dispenser.

The company envisage these outlets as a one-stop-shop for the general public for a variety of

high quality coconut-based products like tender Coconut Water, Coconut Milk Powder, Coconut

Milk and new product innovations like Neera, and Neera By-products like Palm Honey, Palm Sugar,

Palm Jaggery etc. The member farmers can also sell or purchase other chemical free food products

like rice, vegetables etc. through these shops. PCPCL has made a tie up with Kerala Grameen bank

(Rs 50 lakhs) and Canara Bank (Rs 73 lakhs) for financing this venture. Coconut Development

Board has also assured 50% subsidy to 70 coconut points.

So far 39 shops were initiated and another 11 are under consideration. These coconut points

were supposed to be managed and facilitated by the respective Federations and nearby CPSs. But

the result was mixed with a range from very passive to very active. The shops with lukewarm

support are incurring losses. The effort to increase sales by providing incentives also did not took

off since incentives can be given only after achieving a minimum sales to meet the overheads of the

shops. The lack of interest to achieve more by the sales associates had severely affected the whole

programme. Timing, dress code, use of sales software, customer handling, use of internet, hygiene

etc. also leaves lot of to be desired in this regard.

An initiative to introduce credit cards to member farmers were also put on hold due to large

number of sticky/pending payments from the member farmers on various activities.

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PCPCL is launching a major initiative to convert all these shops in to franchise mode by providing

the interested persons or CPSs with a percentage of sales as reward after meeting the overheads;

taking the average sales of last six months as a bench mark. A parallel attempt is being launched

to shift uneconomical shops to better locations/urban areas,a campaign in the nearby offices and

residential areas, adding more products etc.

4.0.10 Kalpakashree debit card and term-loan

In order to revive the sagging fortunes of coconut farmers in the State, the Coconut Development

Board (CDB) and the State Bank of Travancore have entered into an agreement to promote the

small and marginal farmers by providing combo cards titled Kalpakashree Debit Card to around 7

lakh growers who are members of Coconut Producers Societies affiliated to the CDB.

Card-holding farmers are eligible for term-loans for taking up plantation/ re plantation of coconut

trees with a period of 13 years. They can avail Rs. 1.26 lakh per hectare for rain fed and Rs. 1.50

lakh for irrigated gardens. The cardholders are also eligible for short-term loans under Kissan Credit

Cards scheme for maintenance of yielding coconut farms and for inter cropping Farmers who repay

short-term loans up to Rs 3 lakh can avail loans with 4-7 per cent interest.PCPCL is coordinating

this activity in Palakkad District and able to provide loans to 314 member farmers.

In view of the coming drought and the need to invest on irrigation assets like drip irrigation

this scheme has to be enlarged further. The inability to work the details and negotiation skills by

farmers is a major handicap. Similarly most of the bankers give least priority this initiative other

than hollow lip service.

4.0.11 Link up with research Institutions

PCPCL also entered into an agreement with CPCRI, Kasargod to adopt their technology for tapping

Neera. In 2014 March the agreement was operationalized and about 50 palms in Thumbe and 500

palms in Palakkad are tapped using this know-how. The Neera tapped using CPCRI technology is

of very good quality with better flavour, aroma and taste. This technology is now rolled out to the

various federations for thousands of palms.

PCPCL had successfully negotiated an agreement with CFTRI for continuous support for research

and development of Neera related technology on a profit sharing partnership model. A multi-

disciplinary team from CFTRI is now supporting PCPCL for this.

4.1 Research and Development

PCPCL realizes that there would be dime and dozen agencies processing and selling same or similar

products in the market and hence product, technology & delivery differentiation would be key.

Company has invested significant amount of funds to become the market leader through innovation.

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4.1.1 Product innovation

PCPCL is known for its flagship Neera product Pamdew which is in the highest pecking order on

a quality and flavour scale. While rest of Producer companies opted for traditional method of

tapping, PCPCL looked at other options and zeroed in on CPCRI technology of tapping using ice

box methodology. Though it’s a tedious and costly process, the resultant product is of extremely

high quality. Company has conducted one year of trials & tests to develop commercial scale Neera

tapping methodology and cold chain from palm top to dispensing point. Each component of the cold

chain vis. Storage boxes, Transportation vehicles, Cold store, Freezers, Dispenser etc. are finalised

after burning enough midnight oil and cash! Dispensing Neera through typical juice dispenser is an

invention by PCPCL which others are emulating.

Cost of an icebox based on CPCRI methodology is Rs 1000+. With many palms having 2/3

spadix to tap, this would effectively mean, up to Rs 3000+ per palm towards iceboxes.The research

and development effort continued during the last year resulting in further reduction of per box cost

but also improving the product quality, easiness of handling and less ice consumption. When tapping

operations would be scaled up to 10000 palms, these would account for savings of crores of rupees

on capital cost. Plus this could create local employment.

PCPCL has signed up with CFTRI as technology partner. Though Neera bottling technology is

available in the market from various agencies, the taste and flavour are far from satisfactory. It is

in this context that CFTRI is entrusted with the responsibility of developing Neera bottling process

that would ensure superior quality compared to existing products in the market. With 1 year of

efforts and multiple product iterations, CFTRI has come up with a product variant which scores

well compared to market options. Neera plant is being built using this technology.

Company has released and test marketed several products including Cookies, Syrup, Coconut

Oil and Chutney powder.

4.1.2 Technology innovation

Company has conducted trials of concentrating Neera using Vacuum evaporation technology and has

found that the process yields best quality syrup. An existing plant from Karnataka was purchased

on Turnkey basis and the same is erected and commissioned at Muthalamada. Company is in the

process of conducting Neera bottling trials using Flash temperature pasteurization. Company has

tied up with Kerala Veterinary University for this purpose.

PCPCL is revamping product packaging systems to come up with attractive package options.

Trials on various packages, material and machines are under way

4.2 Role of Coconut Development Board

Coconut Development Board (CDB) is a statutory body established under the Ministry of Agricul-

ture, Government of India with its Headquarters at Kochi in Kerala for the integrated development

of coconut cultivation and industry in the country with focus on productivity increase and product

diversification. The formation of Coconut Producer Societies (CPS) were initiated by CDB.

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Coconut Development Board provides excellent technical, administrative and financial support

to the CPS CPF - PCPCL during the last financial year. Even though CDB is solely instrumental

in the creation and establishment of PCPCL, the attitude of the board since the exit of Shri TK

Jose IAS as Chairman is left much to be desired. For an instance; monthly review meetings, targets

and problem solving were routine until April 2016. It should be noted that not a single meeting

was called by CDB since that. They are also silent on fertilizer distribution and subsidies for various

initiatives.

On behalf of the Board of Directors

Mohammed TK

Chairman

Place:Palakkad.

Date:1st September, 2016

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5 Management Discussion and Analysis Report

5.1 Industry scenario

Indian food market is one of the largest in the world and the increasing population would not alter

this fact, surely for few decades. Market size for food in India is estimated at 23 lakhs Crores by

Boston Consulting group and is expected to reach 42 lakhs crore by 2020. PCPCL is a very small

player in this market and even if we grab 0.0025% market share, we would cross a turnover of

100 crore in 2020! Increasing awareness on healthy lifestyle has created a sort of Natural product

revolution in the market and we could not have looked at a better launching pad. Retail revolution

in the Organised segment is helping food product companies to reach wider markets.

Coconut oil and related coconut products had faced tough negative campaigns in the West

which had caused depletion of Coconut related products from supermarket shelves. However last

few years have witnessed tangible shift in the scenario with many international research agencies

coming out in support of Coconut products with a clean chit. Health and nutritious benefits of

coconut products are well articulated in many forums. As a result, the Natural coconut product

portfolio from PCPCL and other Indian Organisations are being received well, generally in the export

markets and particularly in West.

5.2 Opportunities:

India is an agriculture economy and even the domestic consumption is a lucrative market for many

multinationals, which have been waiting for a right opportunity to enter and seize the market. How-

ever, the recent amendments in the Indian Companies Act, provisioning space for Social Enterprises

like Farmers Producer Companies (FPC), gives a larger scope for Indian Farmers to unite and grab

the opportunity to add value to their produces and enter the ever growing consumer market of India.

PCPCLs flagship product, Pamdew, is well received in market place. We can safely conclude

that 8 out of 10 people like the product and come back to buy. There are regular demands and

enquiries from various parts of Kerala, India and globe.

Pamhoney, the Neera honey brand from PCPCL, is well received in the market though we have

issues of quality and consistency. However with the commissioning of our vacuum evaporation

plant, PCPCL would climb up few notches in terms of product quality of Neera by-products. In our

knowledge, we might well be one of the first to market Neera By-products processed through ad-

vanced Vacuum Evaporation methodology which ensures retention of nutrients & vitamins, reduces

caramelization and improves consistency. With regular honey being sold in market at price points of

Rs 400-500 per kg, we could pitch Pamhoney with a slight premium at Rs 500-600 per kg price range.

21

Pamsugar, The Neera sugar from PCPCL stable, has many takers. The initial research findings

indicate a lower Glycemic Index (GI), offering acceptability of usage among diabetic patients. More

research is necessary to conclusively assert the same though. However with cane sugar being avail-

able at price points of Rs 30-60 per kg, we can never position Pamsugar as a direct competition

with our product cost being Rs 600-800 per kg. Pamsugar can be positioned as a Sugar free health

alternate if research conclusively proves low GI credentials.

PamJagri is not yet test marketed. There were many takers for this product in an exhibition

conducted at Mangalore. We could explore the opportunity of PamJagri which is supposed to have

medicinal benefits.

Value added products from Neera and By-products, including Cookies, Biscuits, Ice creams,

Cakes, Pudding, Instant mix etc. is a wide market. We have made initial foray into the same, but

the potential is huge.

Pamfresh Coconut Oil, released by PCPCL during last quarter, is slowly gaining a foothold in

the market. Assurance of an un-adulterated product from farmers company seems to be hitting

a chord with consumers who are fed up with adulterated and spurious products. With capacity

expansion, Coconut oil offers a huge market as its a daily usage item in most South Indian homes.

Further there are opportunities for value addition in Coconut oil including Massage oil & Perfumed

Oil.

Company has initiated the process of kick-starting Micro Enterprises promoted by PCPCL fra-

ternity members for producing Coconut value added products. One of the first few experiments

Pamfresh chutney powder and Vinegar has been a hit in the market. There is huge scope for this

product and many other such products including Coconut chips, Coconut powder, Coconut shake,

Instant mix etc. Micro enterprises are an effective way of creating local entrepreneurs, especially

women and create local employment options.

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5.3 Threats & Concerns:

Threats can be classified as Internal and External.

1. Internal Threats & Concerns: As a start-up in a Social Enterprises sector and being in fledgling

product portfolio like Neera, PCPCL and its league of companies are vulnerable to multiple

threats from within, as that was there in the history of making of AMUL as well.

(a) Mismatch in expectations and realities of farmer members. Being a new venture, Com-

pany is realising various market issues only by experiencing it. Performance issues lead

to variations of payments to farmers and members who are distanced from daily opera-

tions tend to develop grievances. Rumour mills and vested interests also play their spoil

sport to fish in troubled waters.Lack of involvement of member farmers in day to day

operations specified for them

(b) Typical operational issues faced by a new company in a new business vertical, with new

product line up and new set of people! Together, this becomes an existential threat with

lack of quality manpower.

(c) Inability to follow consistency and quality of Neera owing to different methods of tap-

ping, unhygienic tapping methods, skill level of technicians, poor supervision, climatic

conditions, different palm species etc.

(d) Dearth of quality tappers, attrition after training, issues in tapper management

(e) Inability to attract and retain professionals

(f) Product quality. Being in food industry, one packet of poor quality product can kill the

brand image. Experiences of Maggi and Cadburys are striking examples

(g) Lack of entrepreneurship skills and attitudes among member farmers

(h) Non payment of due amounts and collected share amount by member CPS officials and

farmers is a major concern. This is destroying the very fabric of PCPCL and putting it

in severe financial crises.

2. External Threats & Concerns:

(a) Poor technological innovation in the country. Identifying commercially viable technology

innovation on various fields like bottling of Neera by preserving flavour and taste, Value

added product processing, cold chain management, tapping gear development etc. has

been a challenge.

(b) Understanding the international market and its nuances of product acceptance. Unless

professional agencies are engaged, it would be disastrous. A shipment of rejections can

actually kill such a start-up.

(c) Lukewarm support from the present State Government is a concern.

(d) Indifferent and often hostile actions by the so far benefactor CDB is another concern.

(e) The impending drought with resultant reduction in coconut production, damage to co-

conut palms and other agricultural products is going to put our farmers in unprecedented

crisis. This is an existential threat for the whole farming community.

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5.4 Outlook

PCPCL looks at various avenues to enlarge the market footprint and ensure improved product

quality. Some of the planned activities:

1. Improving the process at vacuum evaporation plant which would ensure consistent and good

quality By-products.

2. Tapping export markets for Neera by-products once supply quality and quantity are assured.

3. Setting up of Neera bottling plant. Release multiple variants of Neera and tap into other

states and international markets.

4. Initiating robust direct to customer marketing chains in Thrissur and Eranakulam Corporations.

5. Develop micro enterprises/units for the processing/production of Hair oil, coir fibre, coir pith,

coconut chips, cold press oil expeller unit and tender coconut in this financial year.

6. Set up franchisee shops for Neera, by-products and other value added products.

7. Set up post-mix vending machine based dispensing units using Neera concentrate based re-

constitution methodology.

8. Increase product portfolio in Coconut points through in-house and third party products.

9. Scaling up the Coconut procurement to at least about 25000 nuts per day

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5.5 Internal control system and their adequacy

The Company has an adequate system of internal controls in place. It has documented policies

and procedures covering all financial and operating functions. These controls have been designed to

provide a reasonable assurance with regard to maintaining of proper accounting controls for ensuring

reliability of financial reporting, monitoring of operations and protecting assets from unauthorized

use or losses, compliances with regulations. The Company has continued its efforts to align all its

processes and controls with global best practices.

5.6 Discussion on financial performance

The Company achieved total turnover of Rs. lakhs against Rs.178.30 lakhs in the previous year.

The net loss after tax is Rs 21.68 lakhs against net profit of Rs.3.20 lakhs in the previous year.

5.7 Material developments in resources

The Company believes that success of any organization depends upon availability of human re-

sources. Our assets are our people who work to innovate beyond and challenge established bound-

aries. Thus, employees are vital to the Company. We have a favourable work environment that

encourages innovation and meritocracy. We focus on attracting the best and brightest talent and

the meritocracy is the sole criteria for selection. The Company firmly believes that human resources

is the most important asset, above all.

5.8 Cautionery statement

Statements in the Management Discussion and Analysis describing the Company’s objective, projec-

tions, estimates, expectations may be forward-looking statements within the meaning of applicable

securities laws and regulations. Actual results could differ materially from those expressed or im-

plied. Important factors that could make a difference to the Company’s operations include, among

others, economic conditions affecting demand /supply and price conditions in the domestic and

overseas markets in which the Company operates, changes in the Government regulations, tax laws

and other statutes and incidental factors.

25

6 Corporate Governance Report

6.1 Company’s philosophy on code of governance

The Company firmly believes that business is built on ethical values and principle of transparency

coupled with social responsibilities. Good Governance is an essential ingredient of any business, a

way of it rather than a mere legal compulsion. The Company philosophy on Corporate Governance

envisages the attainment of high levels of transparency, accountability and equity in all facets of its

operations and in all the interaction with its stakeholders, including shareholders, employees, lenders

and the Government. The Board of Directors of Company continues to lay great emphasis on the

broad principles of Corporate Governance.

6.2 Board of directors

1. Composition of the Board: The Board comprises of eleven Directors. Mr S Radhakrishnan,

Director, Mr. Vinod Kumar P, CEO, Mr. Vinod Krishnan G, CFO and Mr. Joji. M. Thakadi,

Vice President - Operations are looking after the day to day operations of the Company.

The remaining Directors as on 31st March, 2016 possess the requisite qualifications and

experience in general corporate management, finance, banking, insurance, economics and

other allied fields which enable them to contribute effectively to the Company in their capacity

as Directors of the Company.

2. Number of Meetings of the Board: During the financial year 2015-16, the Board of Directors

met 10 times: 11 April 15, 26 May 15, 6 July 15, 28 July 15, 31 Aug 15, 27 September 15,

12 October 15, 13 December 16, 16 January 16 and 13 March 16

3. Composition of Directors, Attendance, Shareholding & Directorship & Membership in other

Companies: The information on composition and category of the Board of Directors as on

31st March 2016, attendance of each Director at Board Meeting held during the financial Year

2015-16 and the Annual General Meeting (AGM) held on 29th September, 2015, Shareholding

in the company & directorships positions in other companies are as follows:

26

No Name Category Shares held Attendance Directorship

Board AGM Public Private

1 Mohammed TK Director 100 7 Yes 0 0

2 Radhakrishnan S Director 0 4 Yes 0 0

3 Sethumadhavan K Director 0 4 Yes 0 0

4 Thomas Joseph Director 100 10 Yes 0 0

5 Sasidharan K Director 100 8 Yes 0 0

6 Sudevan P Director 100 10 Yes 0 0

7 Ramachandran AM Director 100 7 Yes 0 0

8 Ramadas MK Director 100 8 Yes 0 0

9 Rajan PC Director 0 3 Yes 0 0

10 Joseph NL Director 0 4 Yes 0 0

11 Rama Sukumaran Director 0 1 Yes 0 0

6.3 Committee of board of directors

6.3.1 Audit committee

The term of reference of Audit Committee is according to Section 177 of Companies Act, 2013

which, inter alia, includes to oversee the Company’s financial reporting process, to review Directors

Responsibility Statement, changes, if any, in accounting policies and reasons for the same, qualifi-

cations in the draft audit report, performance & independence of statutory and internal auditors,

reports of the Companys internal auditors and financial statements audited by Statutory auditors

and also to review the information relating to Management Discussion and Analysis of financial

statements and results of operations, statement of significant related party transactions and inter-

nal control systems.

The Audit Committee comprises the following Directors.

1. Radhakrishnan S

2. Rajan PC

3. Sethumadavan K

Sri Radhakrishnan S is the Chairman of the Audit Committee. Vinod Krishnan G (CFO), acts

as the Secretary of the Committee. The Manager Accounts also attends the Audit Committee

meetings.

6.3.2 Nomination and remuneration committee

The term of reference of Nomination and Remuneration Committee is according to Section 178

of Companies Act, 2013 which inter alia, includes to identify persons who are qualified to become

directors and who may be appointed in senior management in accordance with criteria laid down,

recommend to the Board of Directors their appointment and removal and shall carry out evaluation

27

of every directors performance and to formulate the criteria for determining qualifications, positive

attributes and independence of a director and recommend to the Board of Directors a policy, relating

to the remuneration for the directors, key managerial personnel and other senior employees.

The Nomination and Remuneration Committee comprises:

1. Mohammed T K

2. Sasidharan K

3. Ramachandran AM

Sri Mohammed T K is the Chairman of the Nomination and Remuneration Committee.

6.3.3 Stakeholders relationship committee

To specifically look into redress of complaints related to transfer of shares, non-receipt of dividends,

non-receipt of annual report etc. received from shareholders/investors and improve the efficiency in

investors service, wherever possible. The Committee comprises of;

1. Thomas Joseph

2. Ramadas MK

3. Sudevan P

Mr.Vinod Kumar P, CEO is the Compliance Officer of the Committee. The Compliance Officer

can be contacted at:

PCPCL, Little Tree, Urkulam, Govindapuram.P.O, Muthalamada Palakkad, Kerala, PIN 678507

Phone : +91 9495098240, E-mail ID: ceo@keralacoconut.com

There was no complaints received and replied to the satisfaction of the shareholders during the

year ended 31st March, 2016 were zero and there were no complaints outstanding as on 31st March

2016. The Company had 12 share transfer requests pending as on 31st March 2016.

6.3.4 Risk management committee:

The terms of reference of Risk Management Committee, inter alia, includes, to assess risks in the

operations of business units of the Company, to mitigate and minimize of risks assessed in the

operations of business, units, periodic monitoring of risks in the operations of business units and

other matters delegated to the Committee by Board of Directors of the Company from time to

time. The Committee comprises

1. Joseph NL

2. Rama Sukumaran

Joji. M Thakadi, Vice President Production, is acting as the Secretary of this committee

28

6.3.5 Code of conduct

The Company has in place a comprehensive Code of Conduct (the Code) applicable to all the Senior

Management. The Code gives guidance and support needed for ethical conduct of business and

compliance of Law.

The Code of Conduct for the Board Members of the Company has been amended in line with

the provisions of the Companies Act, 2013, which includes Code for Directors, which is a guide to

professional conduct for Directors of the Company pursuant to Section 149(8) and Schedule IV of

the Companies Act, 2013.

6.3.6 Familiarisation programme for directors

The Directors interact with Senior Management Executives and sought all the information sought

by them enabling a good understanding of the Company, its various operations and the industry of

which it is a constituent.

The role, rights, duties and responsibilities of Independent Directors have been incorporated in

the letters of appointment issued to them. The amendment /updates in the statutory provisions

are informed from time to time.

The information with respect to the nature of industry in which the Company operates and

business model of the company, etc. is made known through various presentations on operational

performance, strategy, budgets & business forecasts, etc. to the Board of Directors.

The above initiatives help the Directors to understand the Company, its business and the regu-

latory framework in which the Company operates to effectively fulfil their role as Directors of the

Company.

6.3.7 Board diversity

The Board of Directors (Board) ensures that a transparent Board nomination process is in place.

The Company has various business sectors which serve different customer segments. Having mem-

bers of the Board from different fields is therefore important for sustained commercial success of

the Company. While selecting the Board members, the Company shall endeavour to include and

make good use of diversity in the skills, qualification, age and professional and industry experience,

irrespective of race, caste, creed, religion, disability or gender.

Details of Sitting Fees paid during the Financial Year 2015-16 to Non- Executive

Directors

The Company does not pay any sitting fees to any director for attending each Board Meeting

and Committee meetings. No commission has been paid to any Director during the financial year

2015-16.

29

Name Designa-

tion

Salary

& al-

lowances

Perks Commis-

sion

Total Stock

Options

Granted

Ramadas MK Director Nil Nil Nil Nil Nil

Sasidharan K Director Nil Nil Nil Nil Nil

Radhakrishnan S Director Nil Nil Nil Nil Nil

Ramachandran AM Director Nil Nil Nil Nil Nil

Joseph NL Director Nil Nil Nil Nil Nil

Mohammed TK Director Nil Nil Nil Nil Nil

Thomas Joseph Director Nil Nil Nil Nil Nil

Sethumadhavan K Director Nil Nil Nil Nil Nil

Sudevan P Director Nil Nil Nil Nil Nil

Rama Sukumaran Director Nil Nil Nil Nil Nil

6.4 Annual general meetings

Detail of Annual General Meetings, location and time, where last year Annual General Meetings

was held at the MA Sangamam Mhal auditorium, Govindapuram PO on 29.9.16 where no special

resolutions were passed

AGM Date & Time Venue Special Resolutions Passed (if any)

First 30.6.13, 10 AM Registered Office Nil

Second 22.9.14, 10 AM Registered Office Nil

EoGM 5.1.15, 10 AM Registered Office Nil

EoGM 23.3.15, 10 AM Registered Office Nil

AGM 29.9.15, 10 AM MA Sangamam Ma-

hal, Govindapuram

PO

Nil

30

6.5 Disclosures

1. Disclosures on materially significant related party transactions i.e. transactions of

the Company of material nature, with its promoters, Directors or the Management,

their subsidiaries or relatives etc. that may have potential conflict of interest of the

Company at large:

During the year 2015-16, the Company had transactions with related parties as defined under

the Companies Act, 2013. The basis of the related party transactions has been placed before

the Audit Committee. All these transactions with related parties were in the ordinary course

of business and on an Arms Length basis and do not attract the provision of Section 188

of the Companies Act, 2013. Suitable disclosures as required by the Accounting Standards

(AS-18) had been made in the notes to the Financial Statement. The Board of Directors has

approved a Policy on Related Party transactions which has been uploaded on the Companys

website www.keralacoconut.com

2. Disclosures of relationships between Directors inter-se:

None of the directors are related each other.

3. Vigil Mechanism/ Whistle Blower Policy:

The Company has adopted Vigil Mechanism /Whistle Blower Policy (Policy) as approved by

the Board of Directors. The Policy encourages whistle blowing against unethical behaviour,

actual or suspected fraud or violation of the Companys code of conduct or ethics policy. The

Audit Committee and Board of Directors on quarterly basis reviews the Complaints received

by the competent authority received under the Policy. The Vigil Mechanism/Whistle Blower

Policy have been posted on the website of the company www.keralacoconut.com. During the

year under review, no employee was denied access to the Audit Committee.

4. Material Subsidiaries:

The Company does not have any material subsidiary.

31

6.6 General shareholders information

1. Company Registration Details:

The Company is registered in the State of Kerala, India. The Corporate Identification Number

(CIN) allotted to the Company by the Ministry of Corporate Affairs (MCA) is CIN NO.

U01133KL2013PTC034397.

2. Shareholders/Investors Services

The Companys Shares & Secretarial department is situated at its registered office Little Tree,

Urkulam, Govindapuram P.O, Muthalamada, Palakkad, Kerala, PIN 678507 and provides

assistance and guidance to shareholders under overall supervision and control of Sri Vinod

Kumar P, CEO and Sri Vinod Krishnan G, CFO.

3. Annual General Meeting

No Date & Time 22.9.16, 10 AM

1 Venue Registered Office,Urkulam, Govindapuram P.O,

Muthalamada, Palakkad, Kerala, PIN 678507

2 Financial Year 1st April, 2015 to 31st March, 2016

3 Date of Book Closure 16th September, 2016 to 23rd September,

2016 (Both days inclusive)

4 Compliance Officer Mr. Vinod Kumar P, CEO

Email id: ceo@keralacoconut.com

4. Proposed Dividend

The Board has proposed no dividend per fully paid Equity Shares for this financial year 2015-

16. As on 31st March, 2016, (0%) of the Companys total paid up capital representing nil

equity shares were held in dematerialized form and the balance 100% representing 3,29,339

equity shares were held in physical form.

5. Shareholding Pattern

The distribution of shareholding as on 31st March, 2016 was as under:

6. Dividend History for Last Year

PCPCL have provided a 1% dividend to its shareholders amounts to Rs.2,09,785.

32

6.7 Certificate of compliance with code of conduct policy

To

The Shareholders of PCPCL

On the basis of the written representations received from Members of the Board and Senior

Management Personnel in terms of the relevant provision of Clause 49 of the Listing Agreement,

we hereby certify that both the members of the board and the senior management personnel of the

Company have affirmed compliance with the respective provisions of the Code of Business Conduct

and Ethics of the Company as laid down by the Board of Directors for the year ended 31st March,

2016.

For Palakkad Coconut Producer Company Ltd

Mohammed TK

Chairman

Place:Palakkad.

Date:1st September, 2016

33

6.8 Chief Executive Officer (CEO) and Chief Financial Officer (CFO)

Certification

To,

The Board of Directors,

Palakkad Coconut Producer Company Limited

Palakkad

Dear Sirs,

Sub: - CEO’s & CFO’s Certificate

We, Mr.Vinod Kumar P, CEO and Mr Vinod Krishnan G, CFO certify to the Board that:

a. We have reviewed the financial statements and cash flow statement for the year ended 31st

March, 2016 and to the best of our knowledge and belief : 1. These statements do not contain

any materially untrue statement or omit any material fact or contain statements that might be

misleading. 2. These statements together present a true and fair view of the companys affairs and

are in compliance with the existing Accounting Standards, applicable laws and regulations. b. To

the best of our knowledge and belief, no transactions entered into by the Company during the year

ended 31st March, 2016 are fraudulent, illegal or violates the Companys code of conduct. c. We

accept responsibility for establishing and maintaining internal control for financial reporting and we

have evaluated the effectiveness of internal control systems of the Company pertaining to financial

reporting. Deficiencies in the design or operation of such internal controls, if any, of which we are

aware, have been disclosed to the auditors and the Audit Committee and steps have been taken

to rectify these deficiencies. d. There has not been any significant change in internal control over

financial reporting during the year under reference. e. There has not been any significant change

in accounting policies during the year. f. We are not aware of the instances during the year of

significant fraud with involvement therein of the management or any employee having a significant

role in the Companys internal control system over financial reporting.

For Palakkad Coconut Producer Company Ltd

Vinod Kumar P, CEO

Vinod Krishnan G, CFO

Place:Palakkad.

Date:1st September, 2016

34

7 Auditors certificate on Corporate Governance

35

36

8 Independent Auditors report

37

9 Balance sheet & Profit & Loss statement

45

10 Cash Flow Statement

48

11 Shareholding pattern

51

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CPS Total No of

shares

Percentage

of share

1 Kuruvay Nalilkera Ulpadhaka Sangham 1065 0.32%

2 Kannambra Nalikera Ulpadhaka Samithi 858 0.26%

3 Manjapra Nalikera Ulpadhaka Sangham 849 0.26%

4 Athipotta Nalikera Ulpadaka Sangham 799 0.24%

5 Kothapuram Veppilassery Nalikear Ulpadhaka Sangham 799 0.24%

6 Thodukad Nalikera Ulpadaka Sangham 768 0.23%

7 Kattussery Nalikera Ulpadaka Sangham 726 0.22%

8 Puthiyangam Thekkumuri Nalikera Ulpadhaka Sangham 625 0.19%

9 Pazhambalacode Nalikera Ulpadakasangam 602 0.18%

10 Muthanode Nalikera Ulpadhaka Sangham 363 0.11%

11 Mooppuparambu Anamari Nalikera Ulpadhaka Sangham 361 0.11%

12 Thekkepotta Nalikera Ulpadaka Sangham 340 0.10%

13 Parakalam West Nalikera Ulpadhaka Sangham 3740 1.14%

14 Mulladikadu Green Nalikera Utpadaka Sangam 1279 0.39%

15 Eruthenpathy River Bridge Nalikera Ulpadaka Sangham 825 0.25%

16 Moongilmada Parakkalam Nalikera Ulpadaka Sangham 506 0.15%

17 Kumaranoor Nalikera Ulpadhaka Sangham 275 0.08%

18 Kairali Nalikera Ulpadaka Sangham - Edathanattukara 3150 0.96%

19 Chalava Nalikera Ulpadaka Sangham 1485 0.45%

20 Palakkunnu Nalikera Ulpadhaka Sangham 1368 0.42%

21 Ponpara Nalikera Ulpadaka Sangham 1121 0.34%

22 Mundakkunnu Nalikera Ulpadaka Sangham 1079 0.33%

23 Aalumkunnu Nalikera Ulpadaka Sangham 1023 0.31%

24 Nalukandam Nalikera Ulpadaka Sangham 935 0.29%

25 Pookkadancherry Nalikera Ulpadaka Sangham 912 0.28%

26 Pilachola Nalikera Ulpadaka Sangham 763 0.23%

27 Thadiyamparambu Nalikera Ulpadaka Sangham 623 0.19%

28 Chullimada Nalikera Ulpadaka Sangham 4275 1.30%

29 Erimayur Nalikera Ulpadaka Sangham 2954 0.90%

30 Koottala Nalikera Ulpadhaka Sangham 2424 0.74%

31 Maruthakodu Nalikera Ulpadaka Sangham 2023 0.62%

32 Sangamam Nalikera Ulpadaka Sangham 1694 0.52%

33 Anakkamparambu Nalikera Ulpadaka Sangham 1575 0.48%

34 Cherupulichi Nalikera Ulpadaka Sangham 1521 0.46%

35 Thottupalam Nalikera Ulpadaka Sangham 1188 0.36%

36 Malakkulam Nalikera Ulpadaka Sangham 684 0.21%

37 Charupadi Nalikera Ulpadaka Sangham 633 0.19%

38 Pullode Nalikera Ulpadhaka Sangham 618 0.19%

39 Kuthirappara Nalikera Ulpadaka Sangham 496 0.15%

40 Poonchola Nalikera Ulpadaka Sangam 5170 1.58%

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CPS Total No of

shares

Percentage

of share

41 Kallamala Nalikera Ulpadaka Sangham 3759 1.15%

42 Irumbochola Coconut Cluster 2091 0.64%

43 Manthoni Nalikera Ulpadaka Sangham 1866 0.57%

44 Varmmamkode Nalikera Ulpadaka Sangham 1852 0.56%

45 Kanhirapuzha New Kairali Nalikera Ulpadaka Sangham 1811 0.55%

46 Pangode Nalikera Ulpadaka Sangham 1700 0.52%

47 Palampetta Nalikera Vikasana Samithi 1567 0.48%

48 Kairali Nalikera Ulpadaka Sangham, Thrikkallur 1500 0.46%

49 Pullikkulam Nalikera Ulpadhaka Sangham 1487 0.45%

50 Chirakkalpadi Nalikera Ulpadaka Sangam 1130 0.34%

51 Kuppakurussi Nalikera Ulpadaka Sangham 514 0.16%

52 Mangode Nalikera Ulpadaka Sangham 4803 1.46%

53 Arappara Nalikera Ulpadaka Sangham 2179 0.66%

54 Ayyappankavu Nalikera Ulpadaka Sangham 2123 0.65%

55 Pullissery-Velungode Nalikera Ulpathaka Sangam 2048 0.62%

56 Karakurussi Kalpaka Nalikera Utpadaka Sangam 1993 0.61%

57 Vazhemburam Nalikera Ulpathaka Sangam 1611 0.49%

58 Anavarambu Nalikera Ulpadaka Sangam 1496 0.46%

59 Karakurussi Kairali Nalikera Ulpadaka Sangham 1441 0.44%

60 Pallikurup Nalikera Ulpathaka Sangam 1315 0.40%

61 Kolani Nalikera Ulpadaka Sangham 1289 0.39%

62 Madathilkund-Mullamoothi Nalikera Ulpathaka Sangam 1206 0.37%

63 Valiyatta Nalikera Ulpadhaka Society 733 0.22%

64 Velampuzha Nalikera Ulpathaka Sangam 1234 0.38%

65 Vakkala Nalikera Ulpadaka Sangham 1100 0.34%

66 Kannamkulam Nalikera Ulpathaka Sangam 917 0.28%

67 Thachakode Nalikera Ulpadaka Sangham 849 0.26%

68 Kozhukully Nalikera Ulpathaka Sangam 642 0.20%

69 Akampadam Nalikera Ulpathaka Sangam 458 0.14%

70 Kairali Nalikera Ulpadaka Sangham,Pandamkode 333 0.10%

71 Korenchira Nalikera Ulpathaka Sangam 166 0.05%

72 Menon Tharissu Priyadharsini Coconut Producers Society 166 0.05%

73 Moolamcode Nalikera Ulpahdka Sangham 137 0.04%

74 Anugraha Nalikera Ulpadaka Sangham 5492 1.67%

75 Sreelakshmi Nalikera Ulpadaka Sangham 2999 0.91%

76 Kannimari Pattikulam Nalikera Utpadaka Society 2660 0.81%

77 Vazhakkode Melakkad Nalikera Ulpathaka Sangam 2346 0.72%

78 Edayankolumbu Nalikera Ulpadaka Sangam 1419 0.43%

79 Karippali Nalikera Ulpadaka Sangham 1333 0.41%

80 Palakode Nalikera Ulpadhaka Sangham 1253 0.38%

81 Karukamani Palathully Nalikera Ulpadaka Sangam 1210 0.37%

Sl N

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CPS Total No of

shares

Percentage

of share

82 Manalipadam Nalikera Ulpadhaka Sangham 1193 0.36%

83 Gayathri Nalikera Ulpadaka Sangham 711 0.22%

84 Chorakode Panamkutti Coconut Producers Society 471 0.14%

85 Mangodu Nalikera Ulpadhaka Sangham 0 0.00%

86 Pazhaniyarpalayam Nalikera Ulpadhaka Sangham 733 0.22%

87 Kalladi Challa Nalikera Ulpadaka Sangham 4283 1.31%

88 C P Challa Nalikera Ulpadaka Sangham 2786 0.85%

89 Parummenchalla Nalikera Ulpadaka Sangham 2666 0.81%

90 Koolakoundan Challa Nalikera Ulpadaka Sangham 2540 0.77%

91 Tharakanchalla Nalikera Ulpadaka Sangham 520 0.16%

92 Manalthode Nalikera Ulpadaka Sangham 476 0.15%

93 Nariponkadu Vinayaka Coconut Producers Society 454 0.14%

94 Parumanchalla Nalikera Ulpathaka Sangam 367 0.11%

95 Ayyavuchalla Nalikera Ulpadaka Sangham 363 0.11%

96 Valara Nalikera Ulpadhaka Sangham 302 0.09%

97 Muttimampallam Nalikera Ulpadhaka Sangham 238 0.07%

98 Kadakurussi Nalikera Ulpadhaka Sangham 1397 0.43%

99 Chithali Nalikera Ulpadhaka Sangham 1191 0.36%

100 Anikode Nalikera Ulpadhaka Sangham 1027 0.31%

101 Thachangad Nalikera Ulpadhaka Sangham 825 0.25%

102 Kizhakkumpuram Nalikera Ulpadaka Sangam 584 0.18%

103 Pothukadu Nalikera Ulpadhaka Sangham 554 0.17%

104 Pulinelly Nalikera Ulpadhaka Sangham 536 0.16%

105 Pannikode Nalikera Ulpadaka Sangam 509 0.16%

106 Kairali Nalikera Ulpadaka Sangham - Kottayi 478 0.15%

107 Vemballur Nalikera Ulpadaka Sangham 456 0.14%

108 Kinnassery Nalikera Ulpadaka Sangam 317 0.10%

109 Pallanchathanur Nalikera Ulpadhaka Sangham 305 0.09%

110 Varode Nalikera Ulpadhaka Sangham 301 0.09%

111 Bungalow School Nalikera Ulpadhaka Sangham 284 0.09%

112 Edapparambu Nalikera Ulpadhaka Sangham 235 0.07%

113 Puzhakkal Nalikera Ulpadhaka Sangham 216 0.07%

114 Chungamannam Nalikera Ulpadhaka Sangham 184 0.06%

115 Chembai Nalikera Ulpadhaka Sangham 162 0.05%

116 Kuthanur Nalikera Ulpadhaka Sangham 101 0.03%

117 Pathikkal Nalikera Ulpadhaka Sangham 71 0.02%

118 Poolampara Nalikera Utpadaka Sangam 1909 0.58%

119 Attapallam Nalikera Utpadaka Sangam 1825 0.56%

120 Kizhakke Attapallam Nalikera Utpadaka Sangam 1598 0.49%

121 Kunjappan Challa Nalikera Utpadaka Sangam 1480 0.45%

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CPS Total No of

shares

Percentage

of share

122 Kanalpirivu Nalikera Utpadaka Sangam 1360 0.41%

123 Kulinkad Nalikera Utpadaka Sangam 1265 0.39%

124 Nilampathi Nalikera Utpadaka Sangam 1129 0.34%

125 Pookund Nalikera Ulpadhaka Sangham 1062 0.32%

126 Pampupara Nalikera Utpadaka Sangam 980 0.30%

127 Manakkalkad Nalikera Ulpadhaka Sangham 842 0.26%

128 Puthanchalla Nalikera Ulpadhaka Sangham 817 0.25%

129 Kodumb Nalikera Ulpadhaka Sangham 706 0.22%

130 Chandrapuram Nalikera Utpadaka Sangam 634 0.19%

131 Puliyampulli Nalikera Ulpadhaka Sangham 551 0.17%

132 Akathethara Kalpadhenu Nalikera Ulpadhaka Sangham 503 0.15%

133 Valladi Nalikera Utpadhaka Sangam 462 0.14%

134 Pudussery Nalikera Ulpadhaka Sangham 394 0.12%

135 Manthakkad Nalikera Ulpadhaka Sangham 370 0.11%

136 Varani Nalikera Ulpadhaka Sangham 369 0.11%

137 Akamalavaram Nalikera Ulpadhaka Sangham 229 0.07%

138 Vallikkode Mutikulangara Nalikera Ulpadhaka Sangham 167 0.05%

139 Kulapadam Nalikera Ulpadaka Sangham 331 0.10%

140 Chappakad West Nalikera Ulpadaka Sangham 6816 2.08%

141 Moochamkundu Nalikera Ulpadaka Sangham 6670 2.03%

142 Alampalayam Nalikera Ulpadaka Sangham 6128 1.87%

143 Periyapathikadu Nalikera Ulpadaka Sangham 5444 1.66%

144 Chemmannamthode Nalikera Ulpadaka Sangham 5386 1.64%

145 Idukkipara Nalikera Ulpadaka Sangham 4491 1.37%

146 M Puthoor Central Nalikera Ulpadaka Sangham 2657 0.81%

147 Pallam Nalikera Ulpadaka Sangham 2118 0.65%

148 Mundipathi Nalikera Ulpadaka Sangham 2050 0.63%

149 Parakkalchalla Nalikera Ulpadhaka Sangham 1562 0.48%

150 Sneham Nalikera Ulpadaka Sangham 1316 0.40%

151 Mathirampallam Nalikera Ulpadaka Sangham 1253 0.38%

152 Samrudhi Nalikera Ulpadaka Sangham 1166 0.36%

153 Attayampathymedu Muthalamada Nalikera Ulpadhaka Sangham 1165 0.36%

154 Valiyachalla Nalikera Ulpadaka Sangham 1128 0.34%

155 Karimannankadu Nalikera Ulpathaka Sangham 818 0.25%

156 Kadamkurissi Nalikera Ulpadhaka Sangham 138 0.04%

157 Andithara Nalikera Ulpadaka Sangham 1666 0.51%

158 Kampampady Nalikera Ulpathaka Sangham 1581 0.48%

159 Erissery Nalikera Ulpadaka Sangam 1155 0.35%

160 Koundankalam Nalikera Ulpathaka Sangam 963 0.29%

161 Vakkinichalla Nalikera Ulpadhaka Sangham 850 0.26%

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CPS Total No of

shares

Percentage

of share

162 Kambilichungam Nalikera Ulpadaka Sangam 642 0.20%

163 Cheriyakanakkanpara Nalikera Ulpadhaka Sangham 596 0.18%

164 Kerasree Nalikera Ulpadaka Sangham 596 0.18%

165 Kenampully Nalikera Ulpadaka Sangham 552 0.17%

166 Chuvattilekalam Nalikera Ulpadhaka Sangham 539 0.16%

167 Kuttipallam Nalikera Ulpadhaka Sangham 520 0.16%

168 Kottamangalam Nalikera Ulpadaka Sangam 431 0.13%

169 Manamkutti Nalikera Ulpadhaka Sangham 348 0.11%

170 Navakonam Nalikera Ulpathaka Sangam 229 0.07%

171 Kalpaka Nalikera Utpadaka Sangam, Pallasssana 2442 0.74%

172 Mankkurussi Nalikera Ulpadhaka Sangham 1653 0.50%

173 Chittady Nalikera Ulpadaka Sangham 1272 0.39%

174 Karimpara Olippara Nalikera Ulpadhaka Sangham 1226 0.37%

175 Elavanchery Nalikera Ulpadhaka Sangham 960 0.29%

176 Aiswarya Kera Nalikera Ulpadhaka Sangham 929 0.28%

177 Kairady Nalikera Ulpadhaka Sangham 794 0.24%

178 Kombankallu Nalikera Ulpadhaka Sangham 779 0.24%

179 Chemmanthodu Nalikera Ulpadhaka Sangham 752 0.23%

180 Kalpaka Nalikera Ulpadhaka Sangham - Pothundi 568 0.17%

181 Pookottu Nalikera Ulpadaka Sangham 425 0.13%

182 Kairali Nalikera Ulpadhaka Sangham 390 0.12%

183 Kalpam - Ayilur Nalikera Ulpadaka Sangham 229 0.07%

184 Cherukot Nalikera Ulpadhaka Sangham 393 0.12%

185 Tharakkalpadi Nalikera Ulpadhaka Sangham 235 0.07%

186 Vallappuzha Railway Station Nalikera Ulpadhaka Sangham 155 0.05%

187 Chungaplavu Nalikera Ulpadhaka Sangham 100 0.03%

188 Mattaya Nalikera Ulpadhaka Sangham 71 0.02%

189 Kuravattur Nalikera Ulpadhaka Sangham 0 0.00%

190 Kairali Nalikera Ulpadaka Sangham 1513 0.46%

191 Gokulam Nalikera Ulpadaka Sangham 981 0.30%

192 Kerampara Nalikera Ulpadaka Sangham 412 0.13%

193 Chaithanya Nalikera Ulpadaka Sangham 371 0.11%

194 Anupur Nalikera Ulpadaka Sangham 366 0.11%

195 Chinna Koundannur Nalikera Ulpadaka Sangham 366 0.11%

196 Kiriyampallam Nalikera Ulpadaka Sangham 366 0.11%

197 Santha Linga Nagar Nalikera Ulpadaka Sangham 366 0.11%

198 Manikkassery Nalikera Ulpadaka Sangham 893 0.27%

199 Poothannur Nalikera Ulpadhaka Sangham 467 0.14%

200 Kalpakam Nalikera Utpadaka Sangham 404 0.12%

201 Cheraya Nalikera Uthpadaka Sangam 345 0.11%

Sl N

o

CPS Total No of

shares

Percentage

of share

202 Parali Nalikera Vikasana Samithi 338 0.10%

203 Pratheeksha Nalikera Utpadaka Sangam 257 0.08%

204 Chalirkkad Nalikera Utpadaka Sangam 252 0.08%

205 Poothannur West Nalikera Ulpadaka Sangham 210 0.06%

206 Mankurussi Kalpavriksha Nalikera Ulpadhaka Sangham 165 0.05%

207 Ezhakkad Nalikera Utpadaka Sangam 90 0.03%

208 Vilayur Nalikera Ulpadhaka Sangham 187 0.06%

209 Peradiyur Nalikera Ulpadhaka Sangham 74 0.02%

210 Vembra Nalikera Utpadaka Society 7966 2.43%

211 Vilayodi Nalikera Ulpadaka Sangham 3764 1.15%

212 Narani Nalikera Ulpadaka Sangham 3130 0.95%

213 Srambi Vanchinathan Nalikera Ulpadaka Sangham 3030 0.92%

214 Valmutty Nalikera Ulpadaka Sangam 2537 0.77%

215 Dheeran Chinnamalai - Karupputhuraikadu Nalikera Ulpadaka Sangham 2170 0.66%

216 Meenakshipuram Nalikera Ulpadaka Sangham 2015 0.61%

217 Plachimada Nalikera Ulpadhaka Sangham 1782 0.54%

218 Kalyanapetta Nalikera Ulpadhaka Sangham 1732 0.53%

219 Enthalpalam Nalikera Ulpadaka Sangham 1616 0.49%

220 Maruthanpara Nalikera Ulpadhaka Sangham 1467 0.45%

221 Ezhuthani Nalikera Ulpadaka Sangham 1238 0.38%

222 Valayakkaran Challa Nalikera Ulpadhaka Sangham 1219 0.37%

223 Ambattupalayam Naliker Uthpadaka Sangham 1111 0.34%

224 Puthussery Nalikera Ulpadhaka Sangham 825 0.25%

225 Nallurkkadu Nalikera Ulpathaka Sangham 518 0.16%

226 Srambi-Namasivaya Nalikera Ulpathaka Sangham 443 0.14%

227 Kaikatty Nalikera Ulpathaka Sangham 325 0.10%

228 Mullanthode Nalikera Ulpathaka Sangam 297 0.09%

229 Kunjumenonpathy Nalikera Ulpadaka Sangham 241 0.07%

230 Srambi-Kaattu Kaliyamman Nalikera Ulpathaka Sangham 156 0.05%

231 Nellimedu Nalikera Ulpadaka Sangham 142 0.04%

232 Charalipathy Nalikera Ulpadaka Sangham 111 0.03%

233 Pookkottukavu Nalikera Ulpadaka Sangham 2816 0.86%

234 Pulapetta Nalikera Ulpadaka Sangham 1639 0.50%

235 Munnorkode Nalikera Ulpadaka Sangham 1453 0.44%

236 Haritha Nalikera Ulpadaka Sangham 1133 0.35%

237 Mythri Nalikera Ulpathaka Sangham 1075 0.33%

238 Gramasree Nalikera Ulpadaka Sangham 917 0.28%

239 Chundekkad Nalikera Ulpadaka Sangham 740 0.23%

240 Kolliyani Nalikera Ulpadaka Sangham 720 0.22%

241 Elambulassery Nalikera Ulpadaka Sangham 688 0.21%

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CPS Total No of

shares

Percentage

of share

242 Kulakattukurussi Nalikera Ulpadaka Sangham 677 0.21%

243 Thirunarayanapuram Nalikera Utpathaka Sangam 650 0.20%

244 Cheerakuzhy Nalikera Ulpadaka Sangham 602 0.18%

245 Punchappadam Nalikera Ulpadhaka Sangham 504 0.15%

246 Nanma Nalikera Ulpadaka Sangham 488 0.15%

247 Pariyanampatta Nalikera Ulpadhaka Sangham 455 0.14%

248 Mannampatta Nalikera Utpadaka Society 436 0.13%

249 Chazhiyode Nalikera Ulpadaka Sangham 348 0.11%

250 Vayilamkunnu Nalikera Ulpadaka Sangham 320 0.10%

251 Kuravattur Nalikera Ulpadhaka Sangham 261 0.08%

252 Thiruvazhiyode Nalikera Utpadaka Sangham 195 0.06%

253 Karimbanchola Nalikera Ulpadhaka Sangham 93 0.03%

254 Kerasree Nalikera Ulpadaka Sangam 63 0.02%

255 Kallumpuram Nalikera Ulpadhaka Sangham 27 0.01%

256 Palakkayam Nalikera Utpadaka Society 2928 0.89%

257 Cheenikkappara Nalikera Ulpadaka Sangham 2549 0.78%

258 Irumbarutty Nalikera Ulpadaka Sangham 1977 0.60%

259 Achilatti Nalikera Ulpadhaka Sangham 1376 0.42%

260 Mahathma Palakkayam Nalikera Ulpadaka Society 1279 0.39%

261 Payippullu Nalikera Ulpadhaka Sangham 1262 0.38%

262 Chenthund Nalikera Ulpadaka Society 904 0.28%

263 Mundambalam Nalikera Ulpadhaka Sangham 451 0.14%

264 Koottambadam nalikera Ulpadaka Sangham 366 0.11%

265 Pichalamunda Nalikera Ulpadhaka Society 285 0.09%

266 Kolppadam Nalikera Ulpadhaka Sangham 2795 0.85%

267 Thodukad Anamooly Nalikera Ulpadaka Sangam 2186 0.67%

268 Keram Nalikera Ulpadhaka Sangham 1576 0.48%

269 Pulimkunnu Thathangalam Nalikera Ulpadaka Sangam 1552 0.47%

270 Cherumkulam Chembankurussi Coconut Production Sangam 1496 0.46%

271 Kainikode Nalilkera Ulpadaka Sangam 1251 0.38%

272 Muthuvally Nalikera Ulpadaka Sangam 1095 0.33%

273 Punchakode Nalikera Ulpadaka Sangham 165 0.05%

12 Annexure to Directors Report

59

Annexure to the director’s report

1. Disclosure of particulars with respect to conservation of energy.

A. Power and fuel consumption: Current year Previous year

1. Electricity

(a) Purchased

Units(KWH) 35180.81 32890.67

Total Amount (Rs in Lacs) 2.17 1.97

Rate/Unit Rs. 6.15 5.98

(b) Own Generation

i)Through diesel generator Unit (Units of power) 5716.4 3523.8

(Unit per Ltr. Of Diesel oil cost/unit) 4 unit/ Ltr. of diesel 4 unit/ Ltr. of diesel

ii)Through steam turbine/generator Units Nil Nil

(Units per Ltr. Of fuel oil/gas cost/unit)

2. COAL (specify quality and where used) Nil Nil

Quantity (tones)

Total Cost (Rs.in Lacs)

Average Rate Per MT

3. FURNACE OIL/LDO Nil Nil

Quantity (K. ltrs)

Total Amount (Rs.in Lacs)

Average Rate Per MT

Other internal generation

Quantity

Total cost

Rent/unit

B. Consumption per unit of production standard (if any):

(No specific standard as the consumption per

unit depends on product mix)

Copra Production (All grades) in kg. 29563.68 19611.00

Copra Production (Units of power/kg. of production) 0.84 0.20

1

2. Technology absorption and foreign exchange earnings outgo

C. Foreign exchange earning & outgo:

(I) Foreign Exchange earnings (FOB) during the

Rs.in Lacs Rs. In Lacs

year

FOB Value of Exports Nil Nil

(ii) Foreign Exchange Outflow during the year

Raw materials/Spares Nil Nil

Capital Equipment Nil Nil

Expenditure Nil Nil

TOTAL