Annual Report 2016-2017 - NDDB Dairy Services

Annual Report2016-2017

Shri Deepak Tikku Chairman Shri S. Parthasarathy IAS (Retd.) Shri Dilip RathChairman, NDDB

Smt. Shyamala Gopinath Ex Deputy Governor, RBI Prof. M.S. SriramVisiting Faculty, IIM Bangalore

Shri Sangram Chaudhary ED, NDDB

Shri S. NagarajanMD, MDFVPL

Dr. V.A. SrinivasanAdvisor, NDDB

Shri Y.Y. PatilGM - Accounts, NDDB

Dr. Omveer Singh MD, NDDB Dairy Services

Shri A.K. KhoslaAdvisor, NDDB Dairy Services

Shri T. Nanda Kumar*Chairman, NDDB * till 1st June 2017

Board of Directors(as on 31st March 2017)

NDDB Dairy Services, a not-for-profit company under Section 8 of the Companies Act, is a wholly-owned subsidiary of the National Dairy Development Board (NDDB).

1NDDB DAIRY SERVICES I AnnuAl RepoRt 2016-2017 I

I NDDB DAIRY SERVICES I AnnuAl RepoRt 2016-2017 2

Contents

4 Setting Up Milk Producer Companies

12 Superior Animal Genetics

18 Strengthening the MPCs

25 Accounts

48 The Staff


Setting Up Milk Producer Companies One of the objectives of NDDB Dairy Services (NDS) is to assist

milk producers to establish and run Milk Producer Companies

(MPCs) successfully. Thus far, NDS has incorporated and

operationalized five Milk Producer Companies – Paayas in

Rajasthan, Maahi in Gujarat, Shreeja in Andhra Pradesh, Baani in

Punjab and Saahaj in Uttar Pradesh.

All five MPCs have considerably grown in size during their

initial three to four years and recognizing this, other agencies

working with dairy farmers have also approached NDS for

assistance in setting up MPCs.


A Producer Company is a private limited company to

which provisions contained in Part IX-A of the Com-

panies Act 1956 apply. It is a business enterprise run

on the basis of ‘Mutual Assistance Principles’ which

are broadly similar to the Cooperative Principles ad-

opted by the International Cooperative Alliance for

cooperatives.

A Producer Company combines the institutional and

ideological strengths of cooperatives – namely own-

ership limited to users; limited interest on shares; no

public trading of shares; returns are patronage-based

and not on capital – with the flexibility and autonomy

available under Company Law.

To date, NDS has successfully promoted and opera-

tionalized five large Milk Producer Companies – Paayas

in Rajasthan, Maahi in Gujarat, Shreeja in Andhra

Pradesh, Baani in Punjab and Saahaj in Uttar Pradesh.

Within a short period of three to four years, these

five Milk Producer Companies have achieved con-

siderable scale in terms of membership, business

turnover, market position and internally generated

equity capital. The success of the MPCs is built upon

a strong team of professionals with proven technical

skills and business acumen.

Together they have enrolled around 0.4 million

milk producers, of whom about 41% are women, 59%

being smallholder milk producers. The members of the

five companies raised around Rs. 910 million towards

share capital. The companies together procured about

2.07 million kg of milk per day during 2016-17 and

together achieved a sales turnover of more than

Rs. 33,130 million during the year. All five MPCs are

financially healthy and are giving a tough competition

to long-established dairy businesses in the organized

and unorganized sectors.

Direct Bank PaymentThe unique feature of the five MPCs – Paayas,

Maahi, Shreeja, Baani and Saahaj – is that the entire

billing cycle right from the testing of milk supplied

by the producers for the quantity, fat and SNF

(solids-not-fat) to the calculation of member pay-

ment and finally transfer of the payment amount

directly to the member’s bank account is done

automatically without any manual intervention.

Payments to the tune of about Rs. 24,500 million

have been made directly to the bank accounts

of more than two lakh milk producers who are

members of these five MPCs.


Awards

For the first time a comprehensive member-centric IT

system which ensures transparency and data integrity

in the complete dairy value chain has been designed

and implemented in our country. As a recognition

of their contribution, NDS and three MPCs – Maahi

Milk Producer Company Limited (Rajkot, Gujarat),

Paayas Milk Producer Company Limited (Jaipur, Raj-

asthan) and Shreeja Mahila Milk Producer Company

Limited (Tirupati, Andhra Pradesh) – were awarded

SAP ACE awards (in 2016) in the category of ‘Special

Recognition for Leveraging SAP Solutions in Adopting

Digital Initiatives in Public & Social Sector’.

The SAP solution has the capability of support-

ing professionals in managing different business

functions like Finance & Costing, Human Resource

Management, Production Planning, Material Man-

agement, Sales & Distribution, Project Management,

Plant Maintenance and Quality Management more

efficiently and enabling them in taking timely de-

cisions leading to cost optimization, and thereby

maximizing returns to the members.

In addition, the SAP system also maintains a

database of the members including their personal

and biometric information and supports efficient

management of key member-centric processes such

as deduction for share capital, allocation of share,

cancellation & transfer of share, incentive payment

to the members and deduction for input services.


Share Capital Contribution by Members(in million Rs.)

Performance Overview (as on March 2017)

Women Members

Membership (Number of Members)

Average Milk Procurement Per Day(in ’ooo kg/day)

Turnover(in million Rs.)

1,000

800

600

400

200

0

2,100

2,000

1,900

1,800

1,700

1,600

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

33,130

28,370

19,695

909

682

473

401,976

41%

399,355

33%

30%

2,075

1,925

1,779

2014-15 2015-16 2016-17

2014-15 2015-16 2016-17

2014-15 2015-16 2016-17

2014-15 2015-16 2016-17

321,810

400,000

300,000

200,000

100,000

0


Recognizing the understanding NDS has of the

dairy business and its experience in organizing dairy

farmers, more and more agencies working with dairy

farmers are approaching NDS for assistance in setting

up MPCs. NDS has agreed to assist the Tata Trusts,

the National Rural Livelihoods Mission (NRLM) and

the NDDB in setting up Producer Companies and to

provide support for institution building and capacity

building.

Assisting the Tata TrustsNDS assisted the Tata Trusts in the incorporation of

four Milk Producer Companies, namely Sakhi Mahila

MPC in Alwar (Rajasthan), Asha Mahila MPC in Pali

(Rajasthan), Shwetdhara Mahila MPC in Pratapgarh

(Uttar Pradesh) and Ruhaanii MPC in Mansa (Punjab).

Prior to incorporation of these MPCs, NDS held

orientation programs for the first subscribers of the

companies and interactions were organized on the

need for institutional intervention in dairying, different

forms of organizations, the need for a ‘producer-owned

organization’ and the benefits of a Milk Producer

Company. Discussions were also held on the various

provisions of the Memorandum of Association (MOA)

and the Articles of Association (AOA).

NDS also facilitated the operationalization of the

four MPCs by assisting in recruitment and training of

professionals and field personnel, obtaining various


licences, setting up infrastructure for milk procurement

and establishing forward linkages. Standard Operating

Procedures (SOPs) were also shared with the MPCs

so as to ensure efficient operation of the entire dairy

value chain. Quality systems complying with statu-

tory/regulatory requirements were also put in place.

NDS assisted the MPCs in arranging input services

to milk producers related to animal breeding and nutri-

tion. Support was provided in convening the periodical

Board and Annual General Meetings, creating member

awareness, and in the areas of Information Manage-

ment, Human Resource Development, Finance, Legal

and Company-Secretarial functions.

NDS is also supporting the Coastal Salinity Preven-

tion Cell (associated with the Tata Trusts) to initiate

milk procurement and technical services network in

its 135 intervention villages in Gujarat and enrol pro-

ducer members in these villages through Maahi MPC.

Assisting the National Rural Livelihoods MissionThe National Rural Livelihoods Mission (NRLM), a

World Bank-funded project being implemented by

the Ministry of Rural Development (MoRD), Govern-

ment of India, is one of the world’s largest initiatives

to improve the livelihood of economically weaker

sections through mobilizing and organizing the rural

poor by actively promoting their financial and eco-

nomic inclusion.

Recognizing NDS’ experience, MoRD has deemed

NDS a Deen Dayal Antyodaya Yojana National Rural

Livelihoods Mission Support Organization to assist State

Rural Livelihoods Mission (SRLM) in the implementa-

tion of Dairy Value Chain interventions by setting up

Milk Producer Companies. NDS is in discussion with

7 of 13 SRLMs in Madhya Pradesh, Bihar, Rajasthan,

Chhattisgarh, Assam, West Bengal and Uttar Pradesh.

NDS helped Madhya Pradesh (MP) and Bihar SRLMs

in preparing proposals for setting up three Milk Pro-

ducer Companies, two in MP and one in Bihar.

NDS has entered into agreements with the MP and

Bihar SRLMs for setting up these MPCs in financial

year 2017-18.

Initiative in BiharAt the request of the National Dairy Development

Board (NDDB), NDS is facilitating the setting up of a

Milk Producer Company covering the north-western

districts of Bihar. The Bapudham MPC in Motihari in

Bihar was incorporated in April 2017 and is proposed

to be operationalized in 2017-18. Milk procurement

operations have already commenced through Mother

Dairy Fruit & Vegetable Pvt Ltd (MDFVPL) which will

be taken over by the MPC.

Initiative in MaharashtraNDDB and Govt. of Maharashtra have signed a Memo-

randum of Understanding (MoU) to develop dairying

in the regions of Vidarbha and Marathwada. NDDB,

through MDFVPL, has initiated milk procurement

operations in select districts with the intent of setting

up an MPC at the appropriate time. NDS is currently

involved in various institution-building activities and

is assisting MDFVPL to put in place systems for the

proposed MPC.


Superior Animal GeneticsNDS’ new state of the art semen stations – Alamadhi (Tamil

Nadu) and Rahuri (Maharashtra), and Sabarmati Ashram

Gaushala and Animal Breeding Centre (the two semen stations

managed by NDS) – produce frozen semen doses (FSDs) under

the brand name ‘Superior Animal Genetics’ (SAG) which was

the largest selling semen brand in the country during 2016-17.

Various extension programs were undertaken during the year to

increase the number of Artificial Insemination Technicians and

dairy farmers using the ‘SAG’ brand of frozen semen.


NDS is the largest producer of frozen semen doses

(FSDs) in the country, with its four semen stations

together producing 32.45 million semen doses in

2016-17. The four semen stations produce FSDs under

the brand name, ‘Superior Animal Genetics’ (SAG).

Sabarmati Ashram Gaushala (Bidaj, Gujarat) pro-

duced 16.40 million doses, Animal Breeding Centre

(Salon, Uttar Pradesh) produced 9.57 million doses,

and the two new mega semen stations, Alamadhi

in Tamil Nadu and Rahuri in Maharashtra, together

produced 6.48 million doses.

Equipped with state of the art infrastructure and

one of the best germ plasm in the country, the semen

doses are produced, evaluated, processed, stored

and supplied under stringent norms.

The four semen stations share the following fea-

tures:

• TheyareISO-9001certified.

• TheGoodManufacturingPracticesenvironment

ensures high quality semen.

• There is aneffective contaminationcontrol

program in place.

• Useofobjectivequalityevaluationdevices–

Computer Aided Semen Analyser (CASA) and

flow cytometry.

• Internationallyapprovedbio-securityprotocols

are in place to ensure that the bulls are disease

free.


Evaluation of Semen StationsThe Central Monitoring Unit, DADF, Government

of India, evaluated 52 semen stations in the country

and ranked Animal Breeding Centre (Salon, Uttar

Pradesh) and Alamadhi Semen Station (Tamil Nadu)

First and Second respectively for the year 2016-17.


Brand SAGSAG is the top selling and also the most revered

semen brand in India and aims to:

• Providethebestgeneticsataffordablerates.

• Assurequalitytoourcustomers.

• Constantlystrivetoimproveandbringinthe

latest technology.

Marketing of SemenIn 2016-17, about 26.9 million SAG branded FSDs

were sold, out of which 15.7 million doses were

supplied to 22 state governments and 44 cooperative

unions in more than 8 states.

The semen is marketed collectively through about

50 distributors across the country. To promote the

‘SAG’ brand, distributors have been provided with

signage boards, posters and standee installations.

Technical brochures, for Artificial Insemination Tech-

nicians (AITs) and dairy farmers, have also been

provided to the distributors.


Extension ProgramsIn order to increase the number of Artificial Insemi-

nation Technicians and dairy farmers using the SAG

brand of frozen semen, more than 45 AIT meets were

held across the country in which about 2,800 AITs

participated. In partnership with the Krishi Vigyan

Kendras, extension programs were conducted for

dairy farmers to explain the advantages of artificial

insemination over natural service and the benefits of

using SAG branded semen doses over other brands.

The SAG brand was also publicized in agri-exhibitions

and print advertisements in the year gone by.

A mobile application has been developed for AITs

in the form of a digital sire-directory in the AIT’s mobile

handset which readily provides details of the bulls

whose semen is available under the SAG brand. The

mobile application also helps the technician to raise

indents and provide feedback to the semen station.

The application was pilot implemented at Udaipur in

Rajasthan and will be rolled out to other parts of the

country in the coming year.


Strengthening the MPCsNDS continued to support and assist the five large MPCs –

Paayas in Rajasthan, Maahi in Gujarat, Shreeja in Andhra Pradesh,

Baani in Punjab and Saahaj in Uttar Pradesh – in the areas of

skill enhancement, quality assurance, marketing products and

productivity enhancement services.


Skill EnhancementTraining for Boards of DirectorsAs part of the skill-building strategy, a business ori-

entation program was organized for the Boards of

Directors (BoDs) of Shreeja, Saahaj, Baani and Maahi

MPCs on ‘Understanding Financial Statements’. At the

conclusion of the program, they were able to explain

and interpret information contained in the Income

and Expenditure Statement and the Balance Sheet.

Refresher Programs for the Directors of the five

MPCs revisited the concepts and issues discussed

during the business orientation program. In addition,

there were orientation programs on the core design

features of the MPCs.

Exposure visits were organized for the BoDs of

Shreeja to Paayas and Baani MPCs, BoDs of Baani to

Shreeja MPC to understand the strategies and activi-

ties of each other, while BoDs of Paayas MPC visited

India International Dairy Expo (IIDE).

For MembersA number of outsourced training programs were

conducted for members. These included a Producer

Awareness Program, a program on quality and clean

milk production and a Women Awareness Program.

While the Producer Awareness Program highlighted

the salient features of the MPC, benefits of becom-

ing members, membership criteria, responsibilities

of members, etc., the Women Awareness Program

emphasized the important role of women in animal

husbandry/dairying and the economic empowerment

opportunities available in the form of a Milk Producer

Company as a producer-owned organization. NDS

had earlier conducted Trainer Training for agencies –

identified by Paayas, Maahi, Shreeja, Baani and Saahaj

MPCs – for conducting these programs.

For ProfessionalsSenior professionals and field teams attended the

orientation programs conducted by NDS on ‘Core De-

sign Principles of the MPC’. Newly-recruited Producer


Institution Building (PIB) personnel also underwent

the orientation program.

Twelve training programs for 60 senior to middle

management staffers on various themes such as Self

Awareness, Situational Leadership, Conflict Manage-

ment, Team-building Skills and Interpersonal Commu-

nication were organized at Maahi, Baani and Saahaj

MPCs. Advanced leadership programs on situational

leadership, including the four quadrant styles for ef-

fective leadership, were launched for the first time in

these MPCs.

Additionally, there were training programs on ‘Pro-

ductivity and Customer Effectiveness’ for the sales and

marketing personnel at Shreeja, Baani and Saahaj and

on ‘Consultative Selling Skills’ for Paayas and Maahi

MPCs. There were more than 140 participants from

the sales teams of all five MPCs.

Assuring Quality NDS’ support for the five large MPCs included putting

in place practices to meet the prescribed quality stan-

dards of the Food Safety and Standards Authority of

India (FSSAI) and improving compliance by periodic

audits of milk chilling centres and processing plants.

NDS also assisted Saahaj MPC in the selection of

a third party plant, upgrading the infrastructure and

implementation of a quality assurance system.

Marketing Products During the year, Saahaj MPC launched its retail brand

‘Saahaj’ for packaged milk, buttermilk, curd and ghee

in various pack sizes in Agra, Aligarh, Mathura, Etawah


cial Insemination (AI) Delivery Services Project under

NDP-I (National Dairy Plan-I). To date more than 1,300

trained Mobile AI Technicians (MAITs) are associated

with the project, covering about 10,700 villages across

the four MPCs. A total of 0.52 million artificial insemi-

nations were carried out taking their total number to

1.08 million since inception.

NDS organized extension activities to educate farm-

ers on the benefits of AI. Two awareness films were

made to aid the extension activities. More than 3,200

infertility management camps and 390 calf-shows were

organized at these MPCs.

NDS continued to provide technical support to the

West Assam Milk Union Ltd (WAMUL) in the imple-

mentation of the AI delivery project initiated under

the World Bank-assisted Assam Agricultural Competi-

tiveness Project.

AI services were also initiated in the new MMPCs

(Mahila Milk Producer Companies), namely Asha,

Sakhi and Shwetdhara promoted by the Tata Trusts.

and adjoining markets. NDS facilitated the launch-

related activities such as market planning, design-

ing of product packaging and brand communication

materials.

Productivity Enhancement AI DeliveryNDS supported four MPCs – Paayas, Maahi, Saahaj

and Shreeja – in the implementation of a pilot Artifi-


Ration BalancingNDS assisted the five MPCs – Maahi, Paayas, Saahaj,

Shreeja and Baani – to implement Ration Balancing

and Fodder Development Projects under NDP-I.

Under this initiative, in 2016-17 about 6,400 Local

Resource Persons (LRPs) from the five MPCs reached

out to about 0.57 million households, covering 0.76

million animals in more than 12,300 villages.

Silage-making demos were ramped up in project

areas, covering more than 380 villages and 5,200 farm-

ers. A total of over 280 beneficiaries have thereafter

taken to silage-making.

NDS also helped create awareness among dairy

farmers in the conservation of crop residues through

Biomass Storage/Bunkers and Mower demonstrations.

About 700 villages and 10,450 farmers were covered

under Mower demos.

NDS facilitated the sale of fodder seeds, cattle feed

and Area-Specific Mineral Mixture (ASMM). Fodder

seed sales reached a high of about 130 MT during the

year. In addition, the five MPCs sold about 38,260 MT

cattle feed and 350 MT of ASMM to their members.

Dairy Farm PracticesIn 2016-17, improved dairy management practices

were introduced in 10 and 8 model dairy farms (micro-

training centres), set up in Baani and Saahaj MPCs

respectively.

Improved practices like free movement housing,

free access to cool and clean water, heat-stress man-

agement, mastitis control, preventive health care, calf

and heifer management, vermi-composting and fodder

production planning & conservation were introduced.

Simple tools to help farmers improve dairy farm man-

agement such as a breeding calendar, ready reckoner

for feeding animals and a farm record-keeping book

have been introduced.

In all, about 2,400 producer-members of Shreeja,

Saahaj and Baani MPCs were trained in these improved

farm management practices. To motivate producers,

kits consisting of teat dip cup, teat dip solution, farm

record book, breeding calendar and other training

materials were distributed. There was an overwhelming

response from producer-members to these interven-

tions.


Chartered Accountants 7th Floor, Building 10, Tower B DLF Cyber City Complex DLF City Phase-ll Gurugram - 122 002, Haryana India

Tel: + 91 (124) 679 2000 Fax: + 91 (I24) 679 2012

I N D E P E N D E N T A U D I T O R ' S R E P O R T

TO THE MEMBERS OF NDDB DAIRY SERVICES

Report on the Financial Statements We have audited the accompanying financial statements of NDDB DAIRY SERVICES (“the Company”), which comprise the Balance Sheet as at 31 March, 2017, the Income and Expenditure Account and the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards prescribed under section 133 of the Act, as applicable.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit.

We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder and the Order under section 143 (11) of the Act.

We conducted our audit of the financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.

Deloitte Haskins & Sells


We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2017, and its ‘Excess of expenditure over income’ and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements 1. As required by Section 143 (3) of the Act, we report that: a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief

were necessary for the purposes of our audit. b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from

our examination of those books. c) The Balance Sheet, the Income and Expenditure Account, and the Cash Flow Statement dealt with by this Report are

in agreement with the books of account. d) In our opinion, the aforesaid financial statements comply with the Accounting Standards prescribed under section 133

of the Act, as applicable. e) On the basis of the written representations received from the directors as on 31 March, 2017 taken on record by the

Board of Directors, none of the directors is disqualified as on 31 March, 2017 from being appointed as a director in terms of Section 164 (2) of the Act.

f ) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.

g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us: i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements –

Refer note 27 to the financial statements; ii. The Company did not have any long-term contracts including derivative contracts for which there were any

material foreseeable losses; iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by

the Company.iv. The Company has provided requisite disclosures in the financial statements as regards its holding and dealings in

Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8th November, 2016 of the Ministry of Finance, during the period from 8th November 2016 to 30 December 2016; and such disclosures are in accordance with the books of accounts maintained by the Company.

2. Since the Company is registered under Section 8 of the Companies Act, 2013 (Section 25 of the Companies Act, 1956), it is not required to enclose a statement on the matters specified in paragraphs 3 and 4 of the Companies (Auditor’s Report) Order, 2015 (“the Order”) issued by the Central Government in terms of Section 143(11) of the Act.

FOR DELOITTE HASKINS & SELLS Chartered Accountants (Firm’s Registration No. 015125N) (Jitendra Agarwal) Partner (Membership No. 87104)

Deloitte Haskins & Sells

Place: New York, USADate: 23 June, 2017


A N N E X U R E “ A ” T O T H E I N D E P E N D E N T A U D I T O R ’ S R E P O R T (Referred to in paragraph 3(f) under ‘Report on Other Legal and Regulatory Requirements’ of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)We have audited the internal financial controls over financial reporting of NDDB DAIRY SERVICES (“the Company”) as of 31 March, 2017 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial ControlsThe Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor’s ResponsibilityOur responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial ReportingA company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial ReportingBecause of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

OpinionIn our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2017, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. FOR DELOITTE HASKINS & SELLS Chartered Accountants (Firm’s Registration No. 015125N) (Jitendra Agarwal) Partner (Membership No. 87104)Place: New York, USADate: 23 June, 2017


N D D B D a i r y S e r v i c e SB A L A N C E S H E E T A S A T 3 1 M A R C H , 2 0 1 7

Particulars Note No.

As at 31 March, 2017


Rupees Rupees I EQUITY AND LIABILITIES

1 Shareholders’ funds(a) Share capital 3 2,000,000,000 2,000,000,000 (b) reserves and surplus 4 37,122,926 71,708,780

2,037,122,926 2,071,708,780 2 Non - current liabilities

(a) Long-term borrowings 5 750,000,000 737,832,000 (b) Long-term provisions 6 12,474,063 9,158,226

762,474,063 746,990,226 3 Current liabilities

(a) Short term borrowings 7 1,255,909 - (b) Trade payables 8(i) Total outstanding dues of micro and small enterprises - - (ii) Total outstanding dues of creditors other than micro and

small enterprises 32,212,110 21,234,655

(c) Other current liabilities 9 145,497,073 177,377,707 (d) Short-term provisions 10 5,790,628 3,776,964

184,755,720 202,389,326 Total 2,984,352,709 3,021,088,332

II ASSETS1 Non-current assets

(a) Fixed assets(i) Tangible assets 11 1,066,350,586 1,000,076,000 (ii) intangible assets 11 6,134,458 6,533,805 (iii) capital work-in-progress 36,222,121 110,910,371 (iv) intangible assets under development 616,240 133,966

1,109,323,405 1,117,654,142 (b) Long-term loans and advances 12 98,217,138 164,039,834

1,207,540,543 1,281,693,976 2 Current assets

(a) inventories 13 67,547,733 17,839,748 (b) Trade receivables 14 99,467,826 21,520,141 (c) cash and cash equivalents 15 1,573,955,765 1,659,763,251 (d) Short-term loans and advances 16 24,543,322 30,878,800 (e) Other current assets 17 11,297,520 9,392,416

1,776,812,166 1,739,394,356 Total 2,984,352,709 3,021,088,332

See accompanying notes forming part of the financial statements

in terms of our report attached

For Deloitte Haskins & Sells For and on behalf of the Board of Directorschartered accountants

Jitendra Agarwal Dilip Rath Dr. Omveer SinghPartner chairman Managing Director

Place: New york, USa K.S. Mehta Hirak GhoshDate: 23/6/17 Head Legal & company Secretary Practice Head Finance

Place: New DelhiDate: 23/6/17


N D D B D a i r y S e r v i c e SI N C O M E A N D E X P E N D I T U R E A C C O U N T

F O R T H E Y E A R E N D E D 3 1 M A R C H , 2 0 1 7

Particulars Note No.

Year ended 31 March, 2017


Rupees Rupees

1. revenue from operations 18 180,893,712 85,325,172

2. Other income 19 134,164,085 163,404,366

3. Total revenue(1+2) 315,057,797 248,729,538

4. expenses:

(a) cost of materials consumed 20 11,357,929 4,675,138

(b) Purchases of stock-in-trade 21 3,541,605 265,176

(c) changes in inventory of finished goods 22 (44,346,741) (13,512,502)

(d) employee benefits expense 23 144,802,988 110,464,795

(e) Finance costs 24 190,749 1,244,456

(f ) Depreciation and amortisation expense 11 70,076,690 44,916,573

(g) Other expenses 25 164,020,431 104,179,897

Total expenses 349,643,651 252,233,533

5. Excess of income over expenditure / (34,585,854) (3,503,995)

(expenditure over income) (3-4)

6. Excess of income over expenditure / (34,585,854) (3,503,995)

(expenditure over income) after tax

7. Surplus/(deficit) per equity share: 26

(Face value - rs. 10 per share)

(a) Basic (0.17) (0.02)

(b) Diluted (0.17) (0.02)



For Deloitte Haskins & Sells For and on behalf of the Board of Directors

chartered accountants


Place: New york, USa

Date: 23-06-2017

K.S. Mehta Hirak GhoshHead Legal & company Secretary Practice Head

Finance

Place: New Delhi

Date: 23-06-17


N D D B D a i r y S e r v i c e SC A S H F L O w S T A T E M E N T

F O R T H E Y E A R E N D E D 3 1 M A R C H , 2 0 1 7



Rupees Rupees

A. CASH FLOw FROM OPERATING ACTIVITIES

Net surplus/(deficit) before tax (34,585,854) (3,503,995)

Adjustments for:

Depreciation and amortisation expense 70,076,690 44,916,573

Finance costs 190,749 1,244,456

interest income (130,489,958) (159,960,909)

Provision for employee benefits 5,329,501 1,133,587

Loss/(profit) on sale of fixed assets - (36,058)

Operating surplus/(deficit) before working capital changes (89,478,872) (116,206,346)

Adjustments for movement in working capital:

Decrease/(increase) in inventories (49,707,985) (17,839,748)

Decrease/(increase) in trade receivables (77,947,686) (21,520,141)

Decrease/(increase) in long term loans and advances 19,586,214 (2,468,256)

Decrease/(increase) in short term loans and advances 6,335,478 (71,580,679)

(Decrease)/increase in short term borrowings 1,255,909 -

(Decrease)/increase in trade payables 10,977,455 6,892,327

(Decrease)/increase in other current liabilities (989,531) 1,276,479

Cash generated from /(used in) operations (179,969,018) (221,446,363)

Net income tax (paid)/refund 53,005,200 (22,116,386)

Net cash flow from/(used in) operating activities [A] (126,963,818) (243,562,749)

B. CASH FLOw FROM INVESTING ACTIVITIES

Decrease/(increase) in bank deposits not considered

as cash and cash equivalents (117,166,000) 542,980,734

capital expenditure on fixed assets including capital advances (131,763,868) (510,406,369)

Proceeds from sale of fixed assets 1,108,095 36,058

interest received 128,584,854 156,236,340

Net cash flow from/(used in) investing activities [B] (119,236,919) 188,846,762

C. CASH FLOw FROM FINANCING ACTIVITIES

Proceeds from long-term borrowings 137,168,000 330,550,000

repayment of long term borrowings (93,750,000) (31,250,000)

Proceeds from short-term borrowings - 50,000,000

repayment of short-term borrowings - (50,000,000)

Finance costs paid (190,749) (1,244,456)

Net cash flow from/(used in) financing activities [C] 43,227,251 298,055,544

Net increase/(decrease) in cash and cash equivalents [A+B+C] (202,973,486) 243,339,559




Rupees Rupees

cash and cash equivalents at the beginning of the year 274,904,862 31,565,305

Cash and cash equivalents at the end of the year 71,931,376 274,904,862

Components of Cash and Cash equivalents:

a) Balances with banks:

- in current/Savings accounts 8,531,376 24,004,862

- in deposit accounts 63,400,000 250,900,000 (maturity less than 3 months)

Cash and cash equivalents as per Cash Flow Statement 71,931,376 274,904,862

b) Other bank balances

- in deposit accounts (maturity more than three months) 1,421,466,000 1,384,220,000

- Deposits under lien 80,558,389 638,389

Cash and cash equivalents as per Balance Sheet 1,573,955,765 1,659,763,251

(see note 15)



For Deloitte Haskins & Sells For and on behalf of the Board of Directorschartered accountants


Place: New york, USa

Date: 23/6/17

K.S. Mehta Hirak GhoshHead Legal & company Secretary Practice Head

Finance

Place: New Delhi

Date: 23/6/17


N O T E S F O R M I N G P A R T O F T H E F I N A N C I A L S T A T A E M E N T S

1. Corporate information NDDB Dairy Services (‘the Company’) was incorporated on 12 October, 2009 as a wholly owned subsidiary of National Dairy

Development Board (NDDB), a body corporate formed under the National Dairy Development Act, 1987. Thereafter, the Company obtained license under Section 25 of the Companies Act, 1956 (section 8 of the Companies Act, 2013) on 10 March, 2010.

The Company has been set up to promote operations related to enhancement of livestock production and productivity, to promote cooperative strategy by carrying out facilities relating to milk procurement, processing, transportation, marketing and quality assurance by itself and through dairy and other cooperatives, producer companies (new generation cooperatives) and other entities by providing technical, managerial and financial support. The Company is engaged in insemination activities including production, purchase, sale and delivery of semen, liquid nitrogen and associated products with respect to livestock production and productivity enhancement. The Company also provides consultancy, advisory and marketing services relating to animal husbandry and dairy to co-operatives and producer companies.

2. Significant accounting policies The significant accounting policies are as follows:

a. Basis of accounting and preparation of financial statements The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles

in India (Indian GAAP) to comply with the Accounting Standards specified under section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 (“the Act”), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b. Use of estimates The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions

considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the period in which results are known/materialize.

c. Inventories Inventories comprise raw materials, finished goods and consumables. Inventories are valued at the lower of cost and net realizable

value after providing for obsolescence and other losses, where considered necessary. Cost is determined using weighted average method. Cost includes all charges incurred in bringing the inventories to the point of sale. Finished goods include appropriate proportion of overheads.

d. Cash and cash equivalents (for the purpose of Cash Flow Statement) Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity

of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

e. Cash flow statement Cash flows are reported using the indirect method, whereby profit before extraordinary items and tax is adjusted for the effects

of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

f. Depreciation and amortisation Depreciation on tangible assets has been provided on straight-line method as per the useful life prescribed in Schedule II to the

Companies Act, 2013, except in respect of mobile phones. Accordingly, the useful life of assets considered is as follows:

Description Useful life

Buildings

Borewell

Carpeted Roads

Plant and equipment

Office equipment

Computers

Furniture and fixtures

Vehicles

Livestock

30 years

5 years

5 years

15 years

5 years

3 years

10 years

8 years

10 years


Intangible assets are amortised over the estimated useful life on straight line method as follows:

Description Useful life

Software

Trademarks

6 years

4 years

Depreciation is provided pro-rata from the date of addition.

All assets costing Rs. 5,000 or less individually are depreciated in the year of acquisition

g. Revenue recognition Sales are recognised, net of returns and trade discounts, on transfer of significant risk and rewards of ownership to the buyers,

which generally coincides with the delivery of goods to customers.

Revenue from services are recognized when services are rendered and related costs are incurred.

h. Other income Interest income on Investments/deposits and Income from rent and hire charges is recognized on accrual basis.

i. Fixed assets (Tangible/Intangible) Fixed assets are carried at cost less accumulated depreciation / amortisation and impairment losses, if any. The cost of fixed

assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use. Subsequent expenditure on fixed assets after its purchase/completion is capitalized if such expenditure results in an increase in the future benefits from such asset beyond its previous assessed standard of performance.

Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately.

Capital work-in-progress Projects under which tangible fixed assets are not ready for their intended use are carried at cost, comprising direct cost, related

incidental expenses and attributable borrowing cost.

j. Foreign currency transactions Transactions denominated in foreign currencies entered into by the Company are recorded at the exchange rate prevailing on

the date of the transaction. Foreign currency monetary items of the Company, outstanding at the balance sheet date are restated at the year-end rates.

Exchange differences arising on translation of monetary assets and liabilities and realised gains and losses on settlement of foreign currency transactions are recognised as income or expense in the Income and Expenditure Account.

k. Employee benefits Employee benefits include provident fund, gratuity and compensated absences. Employee benefits are accrued in accordance

with Accounting Standard – 15 (Revised) “Employee Benefits”

i. Defined contribution plans The Company’s contributions to Provident Fund is considered as defined contribution plan and charged as an expense based

on the amount of contributions required to be made and when services are rendered by the employees.

ii. Defined benefit plans For defined benefit plans in the form of gratuity, the cost of providing benefits is determined using the Projected Unit Credit

method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in the Income and Expenditure Account in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost.

iii. Short-term employee benefits The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by

employees are recognised during the year when the employees render the services.

These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service.

The cost of short-term compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences;

(b) in case of non-accumulating compensated absences, when the absences occur.

iv. Long-term employee benefits Compensated absences which are not expected to occur within twelve months after the end of the period in which the

employee renders the related services are recognized as a liability at the present value of the defined benefit obligation as at the balance sheet date on the basis of actuarial valuation.


l. Borrowing costs Borrowing costs include interest and amortisation of ancillary costs incurred. Costs in connection with the borrowing of funds to

the extent not directly related to the acquisition of qualifying assets are charged to the Income and Expenditure Account over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset are added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Income and Expenditure Account during extended periods when active development activity on the qualifying assets is interrupted.

m. Segment policies i. Business segments: The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal

organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance. The Company has structured its operations into the following segments:

Semen station: insemination activities including production, purchase, sale and delivery of semen, liquid nitrogen and associated products.

Services: consultancy, advisory and marketing services relating to animal husbandry and dairy to co-operatives and producer companies.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under “unallocated revenue / expenses / assets / liabilities”.

ii. Geographic segments The Company operates in a single geographic segment, hence there is no reporting of geographical segment.

n. Leases Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognized

as operating leases. Lease rent under operating leases are recognized in the Income and Expenditure Account on straight line basis, over the lease term.

o. Earnings per share (EPS) The Company reports basic and diluted surplus per share in accordance with Accounting Standard 20 on ‘Earnings per Share’

prescribed by the Companies (Accounting Standards) Rules, 2006. Basic surplus per share are computed by dividing the Excess of Income over Expenditure for the year by weighted average number of equity shares outstanding during the year. Diluted surplus per share is computed by dividing the Excess of Income over Expenditure for the year by the weighted average number of equity shares outstanding during the year as adjusted to the effects of all dilutive potential equity shares, except where results are anti-dilutive.

p. Taxes on income Tax expense comprises current tax. Current tax is the amount expected to be paid for the year as determined in accordance

with the provisions of Income Tax Act, 1961. The Company is registered under Section 12A of the Income Tax Act and has also complied with the required provisions of Section 12A, accordingly Company’s income is exempt from Income tax in terms of the said section. Therefore, no provision for current tax/deferred tax is required.

q. Impairment of assets The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment, if any indication

of impairment exists. If carrying amount of assets exceeds the recoverable amount, an impairment is recognised for such excess amount. The impairment loss is recognized as an expenses in the Income and Expenditure Account. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Income and Expenditure Account to the extent the amount was previously charged to the Income and Expenditure Account.

r. Provisions and contingencies: A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow

of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding employee benefits) are not discounted to their present value and are determined based on best estimate required to settle the obligation as at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent assets are not recognized in the financial statements. Contingent liabilities are disclosed in the notes.

s. Material events Material adjusting events occurring after the Balance Sheet date are taken into cognizance.

t. Operating Cycle Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation

in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.


N O T E S F O R M I N G P A R T O F T H E F I N A N C I A L S T A T E M E N T S

Note No. 3 - Share Capital

Particulars As at March 31, 2017 As at March 31, 2016

Number of Amount Number of Amountshares Rupees shares Rupees

Authorised share capital 200,000,000 2,000,000,000 200,000,000 2,000,000,000

equity Shares of rs. 10 each

Issued, Subscribed and Paid up capitalequity Shares of rs. 10 each fully paid up 200,000,000 2,000,000,000 200,000,000 2,000,000,000

(i) Reconciliation of number of shares and amount outstanding at the beginning and at the end of the year:

Particulars Year ended March 31, 2017 Year ended March 31, 2016


Shares outstanding at the beginning of the year 200,000,000 2,000,000,000 200,000,000 2,000,000,000

Shares issued during the year - - - -

Shares outstanding at the end of the year 200,000,000 2,000,000,000 200,000,000 2,000,000,000

(ii) Rights, preferences and restrictions attached to shares

The company has issued one class of equity shares having face value of rs. 10 each. each shareholder is entitled to one vote per share. as per the license issued by Ministry of corporate affairs under Section 25 of companies act, 1956, no portion of income derived shall be paid or transferred, directly or indirectly by way of dividend, bonus or otherwise by way of profit, to person who at any time are or have been members of the company. in the event of winding-up or dissolution of the company, the remaining assets after satisfaction of all debts and liabilities shall be given or transferred to some other company registered under Section 25 of the companies act, 1956 having objects similar to the objects of the company, to be determined in accordance with clause X of the Memorandum of association of the company.

(iii) Shares held by holding company, ultimate holding Company, their subsidiaries and associates

Particulars

As at March 31, 2017 As at March 31, 2016


National Dairy Development Board, the Holding entity and its nominees

200,000,000 2,000,000,000 200,000,000 2,000,000,000

200,000,000 2,000,000,000 200,000,000 2,000,000,000

(iv) Shareholder holding more than 5 percent shares:

Particulars As at March 31, 2017 As at March 31, 2016

No. of Shares held

% of Holding No. of Shares held

% of Holding

National Dairy Development Board and its nominees

200,000,000 100 200,000,000 100



ParticularsAs at

31 March, 2017As at

31 March, 2016

Rupees Rupees

Note No. 4 - Reserves and surplusa. Surplus/(deficit) in Income and Expenditure Account

(i) Opening balance 71,708,780 75,212,775

(ii) add/(less): Surplus/(deficit) for the year (34,585,854) (3,503,995)

37,122,926 71,708,780

Note No. 5 - Long - term borrowingsSecured

a. Term loans from holding entity 875,000,000 831,582,000

Less: current maturity of long term borrowings 125,000,000 93,750,000

(see note 9) 750,000,000 737,832,000

Notes:

(i) Term loans from National Dairy Development Board (NDDB) are obtained for the purpose of setting up a frozen semen station at alamadhi, Tamilnadu and rahuri, Maharashtra. Term loans are secured by first charge on all the assets created under the setting up of semen stations by hypothecation of assets.

(ii) interest and terms of repayment:

Total Loans sanctioned - rs. 1,000,000,000. Loans Disbursed till March 31, 2017 - rs. 1,000,000,000. Loans O/s as on March 31, 2017 - rs. 8,75,000,000.

Term loans from NDDB are free of interest. However, any income earned on unutilised balance of loans is to be repaid to NDDB.

Term loans are to be repaid over a period of 10 years in 16 half yearly installments after the end of the initial moratorium period of 2 years from the date of first deemed disbursement i.e. 1 January, 2014 for alamadhi Semen Station Loan and 1st October, 2014 for rahuri Semen Station.

Note No. 6 - Long -term provisionsa. Provision for employee benefits

(i) For compensated absences 10,095,091 5,682,595

(ii) For gratuity 2,378,972 3,475,631

12,474,063 9,158,226



ParticularsAs at

31 March, 2017As at

31 March, 2016

Rupees Rupees

Note No. 7 - Short Term BorrowingsFrom banks:

a. Secured loan (see note (i) below)

(i) Working capital loan (repayable on demand) 1,255,909 -

1,255,909 -

Note:(i) Working capital loan from bank is in the nature of bank overdraft,

secured against fixed deposit of the company with banks.

Note No. 8 - Trade payablesa. Trade Payables (Other than acceptances) 32,212,110 21,234,655

(See Note 28) 32,212,110 21,234,655

Note No. 9 - Other current liabilitiesa. current maturities on long term borrowings (see note below) 125,000,000 93,750,000

b. Payables on purchase of fixed assets 14,595,214 76,736,317

c. earnest money deposits 180,000 230,000

d. Statutory dues (contribution to P.F., Withholding Tax, vaT etc.) 4,538,912 6,202,174

e. Security deposits received 134,931 134,931

f. Due to related parties (See note 33) 526,912 324,285

g. advance from customer 521,104 -

145,497,073 177,377,707

Note:For details of security of current maturities of long term borrowings - refer to note 5

Note No. 10 - Short-term provisionsa. Provision for employee benefits

(i) For compensated absences 4,435,824 3,770,011

(ii) For gratuity 1,354,804 6,953

5,790,628 3,776,964


NO

TE

S F

OR

MIN

G P

AR

T O

F T

HE

FIN

AN

CIA

L S

TA

TE

ME

NT

SN

ote

No.

11

- Fix

ed A

sset

sa

mou

nt in

rup

ees

PART

ICU

LARS

G

ROSS

BLO

CKA

CCU

MU

LATE

D D

EPRE

CIAT

ION

NET

BLO

CKA

s at

1-

Apr

-16

Add

ition

sSa

les/

D

ispo

sal

As

at

31-M

ar-1

7A

s at

1-

Apr

-16

For t

he y

ear

On

sale

s/

disp

osal

As

at

31-M

ar-1

7A

s at

31

-Mar

-17

As

at

31-M

ar-1

6(i)

TAN

GIB

LE A

SSET

S (O

wne

d)a.

Build

ings

722

,750

,690

1

,480

,447

-

724

,231

,137

1

2,89

2,71

3 2

2,40

3,37

5 -

35,

296,

088

688

,935

,049

7

09,8

57,9

77

(-)

(722

,750

,690

) (-

) (7

22,7

50,6

90)

(-)

(12,

892,

713)

(-)

(12,

892,

713)

(709

,857

,977

) (-

) b.

Bore

wel

l 9

,385

,516

-

- 9

,385

,516

1

,614

,216

1

,877

,103

-

3,4

91,3

19

5,8

94,1

97

7,7

71,3

00

(-)

(9,3

85,5

16)

(-)

(9,3

85,5

16)

(-)

(1,6

14,2

16)

(-)

(1,6

14,2

16)

(7,7

71,3

00)

(-)

c.ca

rpet

ed ro

ads

65,

371,

451

- -

65,

371,

451

8,4

19,3

41

12,

777,

532

- 2

1,19

6,87

3 4

4,17

4,57

8 5

6,95

2,11

0 (-

) (6

5,37

1,45

1) (-

) (6

5,37

1,45

1) (-

) (8

,419

,341

) (-

) (8

,419

,341

) (5

6,95

2,11

0) (-

) d.

Furn

iture

and

fixt

ures

19,

837,

949

3,0

12,4

49

218

,504

2

2,63

1,89

4 4

,574

,105

2

,309

,478

6

7,40

2 6

,816

,181

1

5,81

5,71

3 1

5,26

3,84

4 (4

,085

,294

) (1

5,75

2,65

5) (-

) (1

9,83

7,94

9) (7

90,0

27)

(3,7

84,0

78)

(-)

(4,5

74,1

05)

(15,

263,

844)

(3,2

95,2

67)

e.ve

hicl

es 1

2,97

5,78

6 8

4,78

2 -

13,

060,

568

1,2

06,5

04

1,6

36,9

54

- 2

,843

,458

1

0,21

7,11

0 1

1,76

9,28

2 (9

78,9

19)

(11,

996,

867)

(-)

(12,

975,

786)

(330

,136

) (8

76,3

68)

(-)

(1,2

06,5

04)

(11,

769,

282)

(648

,782

)f.

Plan

t and

equ

ipm

ent:

- O

wne

d 1

51,0

42,8

19

61,

309,

658

- 2

12,3

52,4

77

9,6

53,6

83

13,

047,

593

- 2

2,70

1,27

6 1

89,6

51,2

01

141

,389

,136

(-

) (1

51,0

42,8

19)

(-)

(151

,042

,819

) (-

) (9

,653

,683

) (-

) (9

,653

,683

) (1

41,3

89,1

36)

(-)

- G

iven

und

er o

pera

ting

leas

e 4

1,35

9,43

2 -

- 4

1,35

9,43

2 3

,292

,467

2

,765

,357

-

6,0

57,8

24

35,

301,

608

38,

066,

965

(17,

561,

932)

(23,

797,

500)

(-)

(41,

359,

432)

(1,0

06,7

86)

(2,2

85,6

81)

(-)

(3,2

92,4

67)

(38,

066,

965)

(16,

555,

146)

g.O

ffice

equ

ipm

ent

14,

109,

496

2,1

72,4

38

3,1

99

16,

278,

735

4,3

26,8

92

3,1

52,4

18

3,1

99

7,4

76,1

11

8,8

02,6

24

9,7

82,6

04

(5,6

15,6

48)

(8,5

69,2

46)

(75,

398)

(14,

109,

496)

(1,9

14,6

67)

(2,4

87,6

23)

(75,

398)

(4,3

26,8

92)

(9,7

82,6

04)

(3,7

00,9

81)

h.Li

vest

ock

6,4

40,4

37

67,

268,

023

1,2

11,4

65

72,

496,

995

624

,190

6

,850

,246

2

54,4

72

7,2

19,9

64

65,

277,

031

5,8

16,2

47

(-)

(6,4

40,4

37)

(-)

(6,4

40,4

37)

(-)

(624

,190

) (-

) (6

24,1

90)

(5,8

16,2

47)

(-)

i.co

mpu

ters

8,3

40,3

15

449

,996

-

8,7

90,3

11

4,9

33,7

80

1,5

75,0

56

- 6

,508

,836

2

,281

,475

3

,406

,535

(5

,092

,554

) (3

,270

,105

) (2

2,34

4) (8

,340

,315

)(3

,941

,666

) (1

,014

,458

) (2

2,34

4) (4

,933

,780

) (3

,406

,535

) (1

,150

,889

)To

tal

1,05

1,61

3,89

1 1

35,7

77,7

93

1,4

33,1

68

1,1

85,9

58,5

16

51,

537,

891

68,

395,

112

325

,073

11

9,60

7,93

0 1

,066

,350

,586

1

,000

,076

,000

Pr

evio

us y

ear

(33,

334,

347)

(1,0

18,3

77,2

86)

(97,

742)

(1,0

51,6

13,8

91)

(7,9

83,2

82)

(43,

652,

351)

(97,

742)

(51,

537,

891)

(1,0

00,0

76,0

00)

(25,

351,

065)

(ii)

INTA

NG

IBLE

ASS

ETS

(oth

er th

an s

elf g

ener

ated

)a.

Trad

emar

ks 5

4,30

0 -

- 5

4,30

0 1

9,48

9 1

3,57

5 -

33,

064

21,

236

34,

811

(46,

300)

(8,0

00)

(-)

(54,

300)

(7,7

01)

(11,

788)

(-)

(19,

489)

(34,

811)

(38,

599)

b.So

ftw

are

9,1

28,9

43

1,2

82,2

32

- 1

0,41

1,17

5 2

,629

,949

1

,668

,003

-

4,2

97,9

53

6,1

13,2

22

6,4

98,9

94

(4,1

00,2

60)

(5,0

28,6

83)

(-)

(9,1

28,9

43)

(1,3

77,5

15)

(1,2

52,4

34)

(-)

(2,6

29,9

49)

(6,4

98,9

94)

(2,7

22,7

45)

Tota

l 9

,183

,243

1

,282

,232

-

10,

465,

475

2,6

49,4

38

1,6

81,5

78

- 4

,331

,017

6

,134

,458

6

,533

,805

Pr

evio

us y

ear

(4,1

46,5

60)

(5,0

36,6

83)

(-)

(9,1

83,2

43)

(1,3

85,2

16)

(1,2

64,2

22)

(-)

(2,6

49,4

38)

(6,5

33,8

05)

(2,7

61,3

44)

(iii)

CAPI

TAL

wO

RK IN

PRO

GRE

SS 3

6,22

2,12

1 1

10,9

10,3

71

(iv)

INTA

NG

IBLE

ASS

ETS

UN

DER

DEV

ELO

PMEN

T 6

16,2

40

133

,966

G

RAN

D T

OTA

L 1

,109

,323

,405

1

,117

,654

,142

D

epre

ciat

ion

and

amor

tisat

ion

Year

end

edYe

ar e

nded

31-M

ar-1

731

-Mar

-16

Dep

reci

atio

n on

tang

ible

ass

ets

68,3

95,1

1243

,652

,351

am

ortis

atio

n of

inta

ngib

le a

sset

s1,

681,

578

1,26

4,22

270

,076

,690

44,9

16,5

73



Particulars As at 31 March, 2017


Rupees Rupees

Note No. 12 - Long-term loans and advancesa. capital advances

(i) Unsecured, considered good 24,248,893 17,480,179

b. Security deposits (Unsecured, considered good) 3,609,029 3,060,649

c. advance income tax (net of provisions rs. Nil ) 40,345,466 62,364,256

(unsecured, considered good)

d. Tax demand paid under protest (Unsecured, considered good) - 30,986,410

e. Balances with government authorities (unsecured, considered good) 13,750 148,340

f. Loans and advances to milk producer companies (secured, considered good) 30,000,000 50,000,000

98,217,138 164,039,834

Note No. 13 - Inventories(at lower of cost and net realisable value)

a. raw material 2,964,171 1,327,596

b. Finished goods 56,799,583 13,512,502

c. Stock in Trade 1,059,660 -

d. consumables 6,724,319 2,999,650

67,547,733 17,839,748

Note No. 14 - Trade receivables(Unsecured, considered good)

a. Outstanding for a period exceeding six months 5,025,405 1,244,211

from the date they were due for payment

b. Others 94,442,421 20,275,930

99,467,826 21,520,141

Note No. 15 - Cash and cash equivalentsa. cash and cash equivalents

(i) Balances with banks

- in current/savings accounts 8,531,376 24,004,862

- in deposit accounts 63,400,000 250,900,000

(original maturity less than 3 months)

cash and cash equivalents as per as-3 -cash Flow Statement 71,931,376 274,904,862

b. Other bank balances

(i) in deposit accounts 1,421,466,000 1,304,300,000

(original maturity more than 3 months)

(ii) Balances held as security against bank borrowings/guarantees 80,558,389 80,558,389

1,573,955,765 1,659,763,251

Note:(i) Balances with banks include deposits amounting to rs 452,800,000 (previous year rs. Nil) which have maturity of

more than 12 months from the balance sheet date.

(ii) Fixed Deposit amounting to rs. 79,920,000 have been pledged against bank overdrfat facility (refer Note 7)


Particulars As at 31 March, 2017


Rupees Rupees

Note No. 16 - Short-term loans and advances(Unsecured, considered good)

a. Loans and advances to related parties (refer note 33) 845,173 796,532

b. Loans and advances to employees 23,695 51,872

c. Prepaid expenses 4,198,561 1,802,326

d. advances to vendors 891,651 14,778,074

e. Loans and advances to milk producer companies 18,332,832 13,200,862

f. Others 251,410 249,135

24,543,322 30,878,800

Note No. 17 - Other current assets(a) interest accrued on bank deposits 11,297,520 8,942,416

(b) interest accrued on loans and advances - 450,000

11,297,520 9,392,416

Note No. 18 - Revenue from operations*a. Sale of products 106,684,683 29,520,442

b. Sale of services 74,209,029 55,804,730

180,893,712 85,325,172

* These activities are not on commercial basis, and are in line with the object clause of the Memorandum of association of the company.

Note:

(i) Sale of product comprises:

a. Manufactured goods

Frozen Semen 104,082,987 29,300,328

b. Traded goods

Liquid nitrogen 477,751 220,114

Frozen Semen 2,123,945 -

106,684,683 29,520,442

(ii) Sale of services comprises

Marketing fees 11,871,917 13,612,351

Professional fees 62,337,112 42,192,379

74,209,029 55,804,730



Particulars Year ended 31 March, 2017


Rupees Rupees

Note No. 19 - Other incomea. interest income from:

(i) Deposits with banks 116,430,306 155,155,077

(ii) income tax refund 8,875,356 1,915,410

(iii) Others 5,184,296 2,890,422

b. Lease rent 3,408,948 3,329,553

c. Profit on retirement / sale of assets - 36,058

d. Miscellaneous income 265,179 77,846

134,164,085 163,404,366


Note No. 20 - Cost of materials consumedRaw material

a. Opening stock 1,327,596 -

b. add: Purchases 12,994,504 6,002,734

14,322,100 6,002,734

c. Less: closing stock 2,964,171 1,327,596

11,357,929 4,675,138

Note:(i) Raw material consumed comprises

a. Straws 7,579,278 2,632,856

b. chemicals 350,447 604,300

c. Liquid Nitrogen 3,286,556 1,421,309

d. Others 141,648 16,673

11,357,929 4,675,138

Note:

entire raw material consumed is indigenous

Note No. 21 - Purchases of stock-in-trade a. Liquid Nitrogen 357,991 265,176

b. Frozen Semen 3,183,614 -

3,541,605 265,176

Note No. 22 - Changes in inventories of finished goods/SITa. inventory at the beginning of the year

Finished goods 13,512,502 -

b. inventory at the end of the year

Finished goods 56,799,583 13,512,502

Stock in trade 1,059,660 -

Net (increase) / decrease (44,346,741) (13,512,502)



Note No. 24 - Finance costsa. interest expense on borrowings 190,749 1,244,456

190,749 1,244,456

Note No. 25 - Other expensesa. consumption of stores and spare parts 27,240,961 9,528,874

b. Financial support to Producer companies 37,710,719 34,515,323

c. Power and fuel 11,657,039 6,656,462

d. Security expenses 7,181,813 4,295,896

e. recruitment expenses 466,151 458,496

f. retainership and contractual expenses 20,886,476 10,026,801

g. rent 14 -

h. rates and taxes 23,475 27,447

i. repairs and maintenance:

- Building 1,149,452 429,871

- Plant & Machinery 1,193,190 -

- Others 5,180,315 3,338,548

j. Meeting and conference expense 612,811 555,837

k. communication expenses 4,036,103 2,947,233

l. Travelling and conveyance 22,051,863 16,084,581

m. auditor’s remuneration (See note below) 506,000 497,527

n. Legal and professional charges 9,262,302 8,072,838

o. Bank charges 18,234 22,745

p. Printing and stationery 1,905,504 1,094,048

q. insurance expenses 1,506,297 304,088

r. Training, awareness and incentives to milk producers 2,784,197 3,997,889

s. Sales promotion expenses 3,529,363 -

t. Miscellaneous expenses 5,118,152 1,325,393

164,020,431 104,179,897

Note:(i) Auditors’ remuneration comprises:

Statutory audit fee 350,000 350,000

Tax audit fee 75,000 75,000

reimbursement of expenses 15,000 7,632

Service tax on above 66,000 64,895

506,000 497,527

Particulars Year ended 31 March, 2017


Rupees Rupees

Note No. 23 - Employee benefits expensea. Salaries and wages 135,265,812 104,041,499

b. Gratuity expense (see note 31) 1,356,528 -

c. contribution to provident fund (See note 31) 6,291,013 5,091,899

d. Staff welfare expenses 1,889,635 1,331,397

144,802,988 110,464,795


Note No. 27 - Contingent Liabilities and Commitments (to the extent not provided for)

ParticularsAs at 31

March, 2017As at 31

March, 2016

Rupees Rupees

(a) Contingent Liabilities

(i) income Tax Demand for the assessment year 2012-13 - 7,66,95,230

(b) Commitments

(i) estimated amount of contracts remaining to be executed on capital account (net of advances of rs. 2,42,48,893.00)

25,158,393 25,270,246

Note No. 28 - MSMED disclosureaccording to the records available with the company, there were no dues payable to entities that are classified as Micro and Small enterprises under the Micro, Small and Medium enterprises Development act, 2006 during the year. Hence disclosures, if any, relating to amounts unpaid as at the year end together with the interest paid / payable as required under the said act have not been given.

Note 29The company is registered under Section 12a of the income Tax act and has also complied with the required provisions of Section 12a, accordingly company’s income is exempt from income tax in terms of the said section. Therefore, no provision for current tax/deferred tax is required.

Note No. 30 - Expenditure in foreign currency

Particulars Year ended 31 March,

2017

Year ended 31 March,

2016

Rupees Rupees

a. Traveling expenses 292,422 425,638

292,422 425,638


Note No. 26 - Surplus/(deficit) per Equity ShareUnit 31 March,

201731 March,

2016

excess of income over expenditure/ (expenditure over income) rupees (34,585,854) (3,503,995)

Weighted average number of equity shares outstanding during the year Numbers 200,000,000 200,000,000

Nominal value of equity Shares rupees 10.00 10.00

Basic surplus/(deficit) per Share rupees (0.17) (0.02)

equity shares used to compute diluted surplus per share Numbers 200,000,000 200,000,000

Diluted surplus/(deficit) per Share rupees (0.17) (0.02)

Note No. 31 - Employee benefit plansi. Defined-contribution plan

The company’s Provident Fund Scheme is a defined contribution plan. The company has recognised rs. 6,291,013 (previous year rs.5,091,899) for Provident Fund contributions in income and expenditure account.

ii. Defined benefit planThe company’s Gratuity Scheme is a defined benefit plan. The following table sets out the status of defined benefit obligations and amount recognised in the financial statements.



Particulars 31 March,

2017 31 March,

2016 Rupees Rupees

I Change in present valuation of obligationPresent value of obligation at the beginning of the year 3,482,584 4,275,932 interest cost 191,324 286,682 current service cost 1,593,287 1,397,459 Benefits paid (1,105,336) (697,568)actuarial (gain)/ loss on obligation (428,083) (1,779,921)Present value of obligation at end of year 3,733,776 3,482,584

Note: The company’s obligation are unfunded

II Expense recognized in the Income and Expenditure Accountcurrent service cost 1,593,287 1,397,459 interest cost 191,324 286,682 Net actuarial (gain)/loss recognized (428,083) (1,779,921)expense recognized in the income and expenditure account 1,356,528 (95,780)*

* netted off with salary and wages in note 22

III Liability recognized in the Balance SheetPresent value of obligation at the end of the year 3,733,776 3,482,584 Net liability recognized in the balance sheet 3,733,776 3,482,584

IV Balance Sheet reconciliationPresent value of obligation as at the beginning of the year 3,482,584 4,275,932 expense as above 1,356,528 (95,780)Benefits paid 1,105,336 697,568 Amount recognised in the balance sheet 3,733,776 3,482,584

The actuarial calculations used to estimate defined benefit commitments and expenses are based on the following assumptions, which if changed, would affect the defined benefit commitment’s size and expense.

V Assumptions 31 March, 2017

31 March, 2016

Discount rate 6.53% 7.30%Salary Growth rate 10.00% 10.00%Mortality iaL 2006-08

UltimateiaL 2006-08

UltimateWithdrawal rate 10.00% 9.00%

Notes:1 The discount rate is based on the prevailing market yields of Government of india securities as at the balance sheet date

for the estimated term of obligations.

2 The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

3 actuarial assumptions used to measure liability for compensated absences are same as above.

VI Experience adjustments

31.03.2017 31.03.2016 31.03.2015 31.03.2014 31.03.2013

Rupees Rupees Rupees Rupees Rupees

Present value of obligation 3,733,776 3,482,584 4,275,932 2,423,329 976,598

experience gain/(loss) on plan liabilities 428,083 1,779,921 (34,665) (105,238) 734,900



Note No. 32 - Segment Reportingi. Segment information

The company has identified business segments as its primary segment. The company’s reporting segments are identified based on activities/products, risk and reward structure, organization structure and internal reporting systems. The company has structured its operations into the segments as listed below. revenue and expenses directly attributable to segments are reported under each reportable segment. expenses which are not directly identifiable to any reportable segment have been allocated on reasonable basis. all other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. assets and liabilities which are directly attributable or allocable to segments are disclosed under each reportable segment. all other assets and liabilities are disclosed as unallocable.

(amount in rupees)

Semen station Services Total

31 March, 2017

31 March, 2016

31 March, 2017

31 March, 2016

31 March, 2017

31 March, 2016

REVENUErevenue 106,684,683 29,520,442 74,209,029 55,804,730 180,893,712 85,325,172

Total revenue 106,684,683 29,520,442 74,209,029 55,804,730 180,893,712 85,325,172

expenses 159,510,463 95,088,774 78,055,127 77,108,222 237,565,590 172,196,996

allocation of unallocated

RESULTSSegment result (52,825,780) (65,568,332) (3,846,098) (21,303,492) (56,671,878) (86,871,824)

Unallocated income (net) 22,276,773 84,612,285

Operating loss/income (34,395,105) (2,259,539)

Finance costs

190,749

1,244,456 excess/(Deficit) of income over expenditure

(34,585,854) (3,503,995)

Tax expense - -

excess/(Deficit) of income over expenditure after tax

(34,585,854) (3,503,995)

Segment assets 1,220,216,694 1,119,308,804 41,135,190 7,786,000 1,261,351,884 1,127,094,804

Unallocated 1,723,000,825 1,893,993,528

Total Assets 2,984,352,709 3,021,088,332

Segment Liabilities 901,084,031 929,258,323 - - 901,084,031 929,258,323

Unallocated 46,145,752 20,121,229 Total Liabilities 947,229,783 949,379,552

capital expenditure 129,618,103 505,827,902 - - 129,618,103 505,827,902

Unallocated 2,145,765 4,578,467

131,763,868 510,406,369

Depreciation/amortization 64,010,240 39,099,363 - 64,010,240 39,099,363

Unallocated 6,066,450 5,817,210 70,076,690 44,916,573

Non-cash expenditure other than depreciation - -



Note No. 33 - Related Party DisclosuresDisclosures as required by the accounting Standard (aS) 18 – “related Party Disclosures” are as below:

a. Name of the related parties and nature of relationship (With whom the company has transactions during the year):

Nature of Relationship Name of EntityHolding company National Dairy Development Board (NDDB)

Fellow Subsidiaries iDMc Limited (iDMc)indian immunologicals Limited (iiL)Mother Dairy Fruit and vegetable Private Limited (MDFvPL)

Key Management Personnel Mr. Deepak Tikku (Whole-time Director,chairman)Mr. Omveer Singh ( Managing Director)Mr. ajay Khosla (Whole-time Director)

B. Details of balances and transactions during the year with related parties

Amount in Rupees

ParticularsHolding

CompanyFellow subsidiaries Key

Managerial Personnel

Total

MDFVPL IDMC IIL

Transactions during the year

reimbursement of expenses by the company 845,173 4,556,689 - - - 5,401,862

(9,500) (4,765,445) (-) (-) (-) (4,774,945)

reimbursement of expenses to the company 6,597 - - - - 6,597

(173,859) (19,208) (-) (-) (-) (193,067)

rent 14 - (-) (-) (-) 14

(-) (-) (-) (-) (-) (-)

interest Paid - - - - - (-)

(91,096) (-) (-) (-) (-) (91,096)

Professional fees paid 844,619 - - - - 844,619

(4,538,654) (-) (-) (-) (-) (4,538,654)

Purchase - - - - - -

(5,575) (-) (-) (-) (-) (5,575)

Sale of assets - 169,956 - - - 169,956

(-) (-) (-) (-) (-) (-)

Short Term Loan Borrowing taken - - - - - -

(50,000,000) (-) (-) (-) (-) (50,000,000)

Short Term Loan Borrowing paid off - - - - - -

(50,000,000) (-) (-) (-) (-) (50,000,000)

Long Term Loan Borrowing taken 137,168,000 - - - - 137,168,000

(330,550,000) (-) (-) (-) (-) (330,550,000)

Long Term Loan Borrowing paid off 93,750,000 - - - - 93,750,000

(31,250,000) (-) (-) (-) (-) (31,250,000)

Managerial remuneration

- Mr. Deepak Tikku - - - - 4,505,310 4,505,310

(-) (-) (-) (-) (2,730,816) (2,730,816)

- Mr. Omveer Singh - - - - 5,370,876 5,370,876

(-) (-) (-) (-) (4,912,980) (4,912,980)

- Mr. ajay Khosla - - - - 4,013,610 4,013,610

(-) (-) (-) (-) (4,884,961) (4,884,961)


ParticularsHolding

CompanyFellow subsidiaries Key

Managerial Personnel

Total

MDFVPL IDMC IIL

Balance outstanding at the end of the year

Other current liabilities 526,912 - - - - 526,912

(324,285) (-) (-) (-) (-) (324,285)

Long Term borrowings 875,000,000 - - - - 875,000,000

(831,582,000) (-) (-) (-) (-) (831,582,000)

Short-term advances 845,173 - - - - 845,173

(-) (796,532) (-) (-) (-) (796,532)

Note: Figures in brackets represents previous year’s comparatives

Note No. 34 - Lease ArrangementsThe company has entered into operating lease arrangements for certain equipment given on operating lease to Baani Milk Producer company Limited, Saahaj Milk Producer company Limited and Shreeja Mahila Milk Producer company Limited which can be renewed on mutual agreed term and conditions. The company has recognised lease rental income of rs. 34,08,948 (previous year rs. 33,29,553) in the statement of income and expenditure account. The lease arrangement is for a period of one year and is extendable/cancellable at the option of both parties by giving one month notice.

Note 35: Disclosure on Specified Bank Notes (SBNs)The company did not have any Specified Bank Notes (SBNs) and other denomination notes as defined in the Mca notification G.S.r 308 (e) dated March 30, 2017 which were held and transacted during the period 8 November, 2016 to 30 December, 2016.

ParticularsSBN’s Other denomination notes Total

(Rupees) (Rupees) (Rupees)

(i) closing cash in hand on 8 November , 2016 - - -

(ii) add: Permitted receipts - - -

(iii) Less: Permitted payments - - -

(iv) Less: amount deposited in banks - - -

(v) closing cash in hand on 30 December, 2016 - - -

Note No. 36Previous year’s figures have been regrouped/ reclassified wherever necessary to correspond with the current year’s classification / disclosure.

For and on behalf of the Board of Directors

Dilip Rath Dr. Omveer Singh

chairman Managing Director

K.S. Mehta Hirak Ghosh

Head Legal & company Secretary Practice Head Finance

Place: New Delhi

Date: 23-06-17



The STaff

chairmanDeepak Tikku

Managing Director Dr. Omveer Singh

COMPANY SECRETARY, LEGAL & ADMINISTRATIONK.S. Mehta, Practice HeadBCom, CS, ICSI

Jaipal Singh Khurana, Associate BCom, CS, LLB

R. Balakrishna, Senior AnalystBA, PGD

Harmeet Negi, AnalystBCom, CS, LLB

PRODUCER INSTITUTION BUILDINGSriram Singh, Practice HeadBTech, PGDRM, CFA

Raksh Pal Singh, SpecialistMSc (Agri - Animal Nutrition)

R. Mariappan, Senior AssociateBSc (Agri)

Brajesh Narain Singh, Senior AssociateBA (Hons), DCM

Alok Kumar Gupta, Senior AssociateBSc, MBA (Marketing)

Rachana Deodhar Goel, Senior AnalystBSc, PGDRM

Gargi Pragya Vaicaknavi, AnalystBBA, PGDM

Ravi Ranjan, AnalystBCom, PGDM

Swati Keshari, AnalystBSc, PGDM

Dhruv Kumar Sharma, AnalystBBA, MBA (RM)

PRODUCTIVITY ENHANCEMENT SERVICESDr. C.P. Devanand, Practice HeadMVSc (Liv. Prod. Mgmt.), MBA (Finance)

Dr. Shri Prakash Singh, Practice HeadProjectsBVSc, MSc (Animal Sciences)

Dr. S.K. Saxena, SpecialistMVSc (Animal Nutrition)

Dr. Rajeev Krishnan, Senior AssociateMVSc (Vet. Pathology), PGD-ABM

Dr. Manvir Singh, AssociateMVSc (Animal Nutrition)

R. Ilamurgan, Site EngineerBE (Civil)

Dr. Rajesh Roshan, Senior AnalystBVSC & AH, MBA (RM)

Dr. Lokendra Chauhan, Senior AnalystMVSc (Animal Nutrition)

Dr. Niaz Vaheed, Senior AnalystBVSc & AH, MBA (Marketing & Operations)

Ashish Kumar Trivedi, Senior AnalystBCom, MA (Sociology)

Vipul Kumar, Senior AnalystBSc (Agri), MBA (Agri)

Sanjiv Kumar Singh, Senior AnalystMSc (Agri - Bio Chemistry)

Atul Singh, Senior AnalystBSc (Agri), MBA (Marketing)

Dr. Navin Kumar Bansal, AnalystBVSC & AH

DAIRY VALUE CHAINSunil Kumar Sharma, Practice HeadBSc, LLB, PGDRM

Basant Choudhary, Associate BSc, PGDCA, MBA (Marketing)

Yogendra Kumar Nigam, AssociateBSc, IDD

Debashree Adhikary, Senior AnalystBA (Hons), PGDBM

Subhash Chandra, Senior AnalystBA (Hons), MA (Social Work)

Vinay Pratap Singh, Senior AnalystBTech (DT), MBA (Agri Business)

Mayank Mangal, Analyst BCom

PLANNING, COORDINATION & MONITORINGDr. Raghu Mallegowda, Senior AssociateMVSc (Vet. Gynaecology and Obstetrics)

Mahima Sharma, AnalystBSc, MBA (Food & Agriculture)

QUALITY ASSURANCEBiswajit Dutta, Practice HeadBSc, PGDRM

Ashwani Sharma, Senior Analyst BSc, PG (Food Technology), PGDEM, BIT (Software Engineering)

Priti Chaudhary, AnalystMSc (Dairy Chemistry)

Rajiv Ranjan Goyal, AnalystBTech (DT)

Sonika Choudhary, Analyst MSc, PhD (Dairy Chemistry)

INFORMATION TECHNOLOGYJai Narain, Practice HeadBA, BCom, MCA

Sanjay K. Deshmukh, AssociateBSc, MCM

Chander Batra, AssociateBCA, MCA

Ashish Gupta, AnalystBSc, MCA

Rangit Kumar, AnalystBA, MCA

Tapan Kumar Parida, AnalystBSc, MCA

FARM SERVICESDr. C.S. Thomas, Practice HeadMSc, PhD (Animal Sciences)

Budh Prakash Kanoujia, AnalystBTech, PGDFM

Anway Sarkar, AnalystMSc (Agri - Extension Education)

MISDiwakar Srivastava, Practice HeadMSc (Agri - Agronomy), PGDRM

Swati Singh, AnalystBSc, MBA (FRSC)

Puneet Kumar Tyagi, AnalystBCom, MBA (Research & Business Analytics)

BUSINESS EXCELLENCE Nishant Aggarwal, AnalystDip (Mechanical), PGDBA

FINANCE & ACCOUNTSHirak Ghosh, Practice HeadBCom, CA

Surya Prakash Gupta, AssociateBCom, CA, CS

Vikas Upadhyay, AnalystBCom, MBA (Finance)

Sachin Kumar Goyal, AnalystBCom

Juhi Chauhan, AnalystBSc, MBA (Finance)

Anuj Chaurasia, AnalystBCom, CA

HUMAN RESOURCESPrakash Chandra Mishra, Practice HeadBA, MPM

Shwet Awasthi, AssociateBCom, PGDBM

Sanjay Jat, AssociateBSc, MA (Social Work), PGDBA

Nupur Kaushik, Analyst BCom, PGDM

Basundhara Das, AnalystBSc, MBA (Human Resource)

PURCHASEB. Dutta Biswas, SpecialistBTech, PGD (High Polymer Engineering)

Hari Ome Choudhary, Senior AnalystMTech (Agri Engineering), MBA (Agri Business)

Kumar Saurabh, AnalystBTech, PGDM (Finance)

AcknowledgementNational Dairy Development Board, Anand

Mother Dairy Fruit & Vegetable Pvt Ltd, Delhi

Edit, Design, Print: IMAGINEPhotography: Sunil Adesara

NDDB House, Safdarjung Enclave, New Delhi 110 029

INDIA

Phone: (011) 49883000 / 49883088www.nddbdairyservices.com

email: [email protected]

Annual Report 2016-2017 - NDDB Dairy Services

Documents

Transcript of Annual Report 2016-2017 - NDDB Dairy Services