Senior Executives - Index : National Agricultural … Seed business to the tune of ` 32.37 Crore...
Transcript of Senior Executives - Index : National Agricultural … Seed business to the tune of ` 32.37 Crore...
1AnnuAl report 2016-17
Shri Ram Subhag SinghManaging Director
13.11.2014 to 10.06.2016
Shri A. K. RathExecutive Director
Dr. Shakil P. AhmedManaging Director
(Addl. Charge)01.08.2016 to 22.08.2016
Shri S. K. VermaExecutive Director
Shri Sunil Kumar SinghAddl. Managing Director
Senior Executives
Shri Sanjeev Kumar ChadhaManaging Director
2 AnnuAl report 2016-17
I N D E X
CHAPTER NO. CONTENTS PAGE NO.
1 Introduction 3
2 Nafed and its Mandate 4
3 Business Highlights 5
4 Executive Summary of Different Business Activities 6
5 Membership 24
6 Meetings (AGM, BOD, EC, BC etc.) 25
7 Acknowledgement 28
8 Board of Directors 29
9 Annexures 30
10 Annual Accounts Index 37
(i) Auditors’ Report 38-41
(ii) Compliance on Auditors’ Observations 42-50
(iii) Balance Sheet 51
(iv) Statement of Profit and Loss 52-53
(v) Schedules 54-70
(vi) Significant Accounting Policies 71-87
11 Network of Nafed 88
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INTRODUCTION
1.1 Agriculture plays a vital role in India’s economy. 54.6% of the population is engaged in agriculture and allied activities (census 2011) and it contributes 17.4% to the country’s Gross value Added (current price 2014-15, 2011-12 series). Given the importance of agriculture sector, Government of India took several steps for its sustainable development. Steps have been taken to improve soil fertility on a sustainable basis through the soil health card scheme, to provide improved access to irrigation and enhanced water efficiency through Pradhanmantri Gram Sinchai Yojana (PMKSY) to support organic farming through Paramparagat Krishi Vikas Yojana (PKVY) and to support for creation of a unified national agriculture market to boost the income of farmers.
1.2 As per the land use statistics 2012-13, the total geographical area of the country is 328.7 million hectares, of which 139.9 million hectares is the reported net shown area and 194.4 million hectares is the gross cropped area with a cropping intensity of 138.9%. The net irrigated area is 66.1 million hectares.
Three year roadmap of Govt. of India 1.3 Government of India is working on realization the vision of Hon’ble Prime Minister for doubling of farmers’
income by 2022. Towards this, the Ministry of Agriculture Cooperation and Farmers Welfare will initiate and implement the following over the next three (3) year period of 2017-18 to 2019-20.
Irrigation- “Per Drop, More Crops”
Quality seeds-Improving seed replacement rate
Soil test based nutrient management- Distribution of soil health cards
Post-harvest crop losses- Large investments in warehousing and cold chains
Value addition to farmers
Creation of a National Agricultural Market, removing distortions and e-platform across 585 markets.
New crop insurance scheme – Pradhan Mantri Fasal Bima Yojana-Minimum Premium and Maximum Security.
Promotion of ancillary activities- poultry, sericulture, beekeeping
Marketing, Storage and other Post-production Infrastructure 1.4 a Orient, persuade and handhold States UTs in adoption of Model Agricultural Produce and Livestock
Marketing (Promotion & Facilitation) Act, 2017; roll out Model Contract Farming Act, 2017 by October 2017; roll out Guidelines on ‘Strengthening Warehouse Storage and Warehouse Receipt Based Pledge Loan System’ by October 2017.
1.4 b Onboard a cumulative of 585 agricultural markets on e- NAM platform by March, 2018, consolidate online trading and inter-market transactions.
1.4 c Prepare a map of all the dry and cold storage infrastructure in the country and provide information and access to the producers and other stakeholders on Google. Under Grameen Bhandar Yojana, link financial
assistance to-District Storage capacity derived from demand-supply status.
Chapter 1
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NAFED AND ITS MANDATE
• Set up on 2nd October 1958 as an Apex National Marketing Federation in the country, Nafed has 14 branches
and 5 Sub-offices located in state capital of major cities.
• The objective of Nafed is to organize, promote and develop marketing, processing, storage of agricultural,
horticultural and forest produce, import and export of agricultural commodities to augment the supplies
in domestic market. Nafed also extends support to farmers in collaboration with State Level Marketing
Cooperatives/ Commodity Federation and Primary Agricultural Cooperative Marketing Societies.
• Nafed is the only National Level Marketing Federation with performance legacy of around 57 years. Nafed has
membership of 854 societies consisting of National Level Federation, State and UT Level Apex Cooperative
Marketing Federations, State Level Tribal & Commodity Federation and Primary Cooperative Marketing/
processing Societies.
• Nafed is one of the central nodal agencies of Government of India for implementation of Price Support
Scheme (PSS) and Price Stabilization Fund (PSF) Scheme.
• Nafed has been undertaking Price Support Scheme to ensure MSP to the farmers of oilseeds, pulses and
cotton since last three decades through network of its State Level Marketing Federations and Primary
Societies. Nafed has procured commodities valuing ̀ 23565 Crore from Farmers in last 15 years and benefitted
farmers across India. Due to its presence in almost in all states upto mandi/ village level, procurement can be
undertaken by Nafed in the shortest possible time, which is one of the biggest advantages of implementation
of any Government scheme through Nafed.
• Nafed is a leading agency in procurement of agricultural commodities in the country with impeccable
results. Quantum of procurement made by Nafed is beyond comparison with reference to procurement
made by other nodal agencies. Despite appointment of 3 other Nodal agencies for implementation of PSS,
90% of the volume of procurement was undertaken by Nafed.
• Nafed plays an import role in stabilizing prices of onion, potato, edible oils and Pulses in domestic markets
either through imports or domestic procurement in the country.
• Apart from providing support to the farmers by way of implementing various schemes of Central Government/
State Governments such as PSS, PSF, MIS etc. Nafed also procured various agricultural commodities directly
from farmers at mandi level through cooperative network in its outright/commercial account.
• In addition Nafed has also increased its activities in the area of seed distribution and consumer marketing
through retail trade. Nafed is also engaged in the development of infrastructural facilities like Godowns,
Cold Storages and Warehouses.
Chapter 2
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BUSINESS HIGHLIGHTS
During the year, Nafed procured record quantity of 870049.651 MTs of Pulses & Onion under Price Stabilization
Fund (PSF) and a quantity of 230436.901MTs of Oilseeds and Pulses under Price Support Scheme (PSS) and also
recorded highest gross profit of ` 149.17 Crore in last two decades. Procurement of Pulses, Oilseeds and other
commodities by NAFED has improved significantly during block period 2014-17 in comparison to block period
2011-14.
Achieved a turnover of ` 504.77 Crore during 2016-17.
There was a gross profit of ` 149.17 Crore, but due to huge interest liability on outstanding loans in Tie-up
business, there is a net loss of ` 40.75 Crore.
The share capital increased from ` 24.18 Crore to ` 24.28 Crore as on 31.3.2017.
Membership of the Federation stood at 854 as on 31.3.2017.
Continued to enjoy the status of Export House as per Certificate of recognition issued by Ministry of
Commerce, Government of India.
In its commercial operations, NAFED achieved a turnover of ` 504.77 Crore in domestic trading of various
agricultural commodities, which include PSS and PSF business also.
Continued to be the one of the Central Nodal Agencies of the Government of India for procurement of
notified Oilseeds, Pulses & Cotton under Price Support Scheme. NAFED procured oilseeds and pulses valuing
of ` 965.30 Crore under Price Support Scheme during 2016-17.
NAFED took initiative for buffer stocking of Pulses (Toor/Moong/Urad/Gram/Masoor) & Onion under PSF
and procured the same to the value of ` 4155.38 Crore.
Undertaken Seed business to the tune of ` 32.37 Crore mainly through NBF Indore by empanelled seed
producers under centrally sponsored scheme NMOOP & NFSM for distribution to Government Departments/
Institutions during 2016-17.
NAFED marketed Groceries & other Consumer items valued around ̀ 24.76 Crore directly to the Consumers
and also catered to the Institutional supplies which include various Fruits & Vegetables valuing ̀ 7.85 Crore
under outright account in domestic trade.
To assist Poultry farmers, NAFED handled Eggs & Poultry feed valued at ` 2.26 Crore during the year
2016-17.
Nafed has 42 freehold and leasehold properties in the form of Plots, Lands, Godowns, Industrial Units, Pack
Houses, Onion Storage structures and Cold Storage as well as residential and office premise at different
locations in the country. Presently Nafed is having Godown capacity of 50,200 MT, Cold storage capacity of
9565 MTs, Onion storage capacity of 4400 MTs and Empty Container Yard of 20,008 Sq. Mt.
Chapter 3
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EXECUTIVE SUMMARY OF DIFFERENT BUSINESS ACTIVITIES
4.1 During the year 2016-17, Nafed achieved a business turnover of ` 504.77 Crore by way of domestic
trade only. The domestic trade includes business in Outright Account and Price Support Scheme (PSS) / Price
Stabilization Fund (PSF) on behalf of Government of India.
Domestic Trade
Procurement & Disposal
Price Support Scheme (PSS)
4.2 In order to help the farmers in getting remunerative prices for their produce with a view to encourage
higher investment and as also to increase production and productivity of a commodity, Government of India
declares Minimum Support Prices (MSPs) for 25 notified agricultural commodities for each Kharif & Rabi crop
season.
4.3 Nafed is one of the Central Nodal Agencies for procurement of 16 notified agricultural commodities
of Oilseeds, Pulses and Cotton under Price Support Scheme (PSS) and continues to be the sole Central Nodal
Agency for procurement of Milling, Ball Copra and De-husk Copra under Price Support Scheme.
4.4 As per the Scheme, procurement is to be undertaken, if the market price of FAQ stocks rule at or below
the declared MSPs and procurement is to be continued till the market prices stabilize above the declared MSP
or harvesting period of 90 days as declared by respective State Governments, whichever is early. NAFED is
procuring FAQ stocks under PSS directly from the farmers through its Cooperative network at State level and
Primary level. The payment to the farmers is made only through digital mode like RTGS/NEFT. Losses, if any,
incurred in PSS Operations of Oilseeds, Pulses and Cotton are fully reimbursed by Government of India. Profit, if
any, on disposal of the commodities procured under PSS is transferred to Government of India. NAFED has been
implementing the Scheme on behalf of Government of India for more than three decades.
Chapter 4
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Minimum Support Prices (MSPs) of Oilseeds, Pulses & Cotton fixed by the Government of India during 2016-17 & 2017-18
(MSP Rate: ` per quintal for FAQ)
S.No Commodity 2016-17 2017-18
A. RABI CROP
1 Rapeseed/ Mustard 3700*
2 Safflower seed 3700*
3. Gram 4000^
4. Toria 3560
5. Masur (Lentil) 3950@
B. KHARIF CROP
1. Soyabean 2775* 3050^
2. Groundnut -in-shell 4220* 4450^
3. Sunflower Seed 3950* 4100*
4. Sesamum 5000^ 5300*
5. Nigerseed 3825* 4050*
6. Moong 5225^^ 5575^
7. Urad 5000^^ 5400^
8. Tur (Arhar) 5050^^ 5450^
9. Cotton (Medium Staple) 3860 4020
10. Cotton (Long Staple) 4160 4320
C. PERENNIAL CROPS (Based on the calendar year)
1. Copra (Milling) 5950 6500
2. Copra (Ball) 6240 6785
3. De-husked Coconut 1600 1760
* Including bonus of ` 100/ per quintal
^ Including bonus of ` 200/ per quintal
^^ Including bonus of ` 425/ per quintal
@ Including bonus ` 150/ per quintal
4.5 Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW), Ministry of Agriculture, Govt. of
India has issued guidelines on 31.07.2014 stipulating therein responsibilities of State Governments and Central
Nodal Agencies for undertaking procurement of oilseeds, pulses and cotton under Price Support Scheme (PSS).
State Governments after evaluation of crop situation in their State have to notify the expected production,
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sowing area, average yield, peak arrival/harvesting period for all those crops for which MSP is declared. The
State Govt. will send copy of such notification and willingness of State Government to exempt Mandi Tax/Levy,
arrangements of publicity of the scheme, working capital, logistic, godowns, gunny bags etc to DAC&FW for
consideration and conveying the approval to Central Nodal Agencies & State Govt. to implement the Price
Support Scheme for the proposed commodities in such States.
4.6 As per the directions and approval of Department of Agriculture, Cooperation and Farmers Welfare,
Nafed procured a quantity of 4949.268 MT of Sunflower Seeds in the states of Haryana & Odisha, 4487.083
MT of Milling Copra in the states of Andhra Pradesh & Tamil Nadu, 1836.859 MT of Ball Copra in the states of
Karnataka & Tamil Nadu, 210732.024 MT of Groundnut in state of Gujarat and 164.092 MT of Soybean in the
State of Maharashtra under PSS. So a total quantity of 222169.000 MTs Oilseed valuing ` 925.62 Crore were
procured under PSS during 2016-17. Further, a quantity of 8267.575 MT of Moong valuing ` 39.68 Crore was
procured under PSS in the States of Maharashtra & Karnataka during 2016-17.
4.7 A quantity of 4992.503 MT of Sunflower Seeds, 1276.248 MT of Milling Copra and 155.546 MT of Ball
Copra procured under PSS were disposed off in open market through e-auction on NeML portal during 2016-17.
Procurement of Oilseeds & Pulses Under Price Support Scheme of Govt. Of India
YearPulses Oilseeds Total
Qty. Value Qty. Value Qty. Value
2012-13 95861 40493 77233 39406 173094 79899
2013-14 49819 21422 379402 156576 429221 177998
2014-15 313917 97303 12098 4552 326015 101855
2015-16 - - 4242 1591 4242 1591
2016-17 8268 3968 222169 92562 230437 96530
TOTAL 467865 163186 695144 294687 1163009 457873
9AnnuAl report 2016-17
Procurement of Pulses under Price Stabilization Fund (PSF) Scheme of GOI
4.8 Government of India has introduced PSF Scheme to create buffer stock of Pulses, which is presently
being implemented by Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public
Distribution, Govt. of India. Nafed is one of the Central Agencies for Procurement of Pulses under Price
Stabilization Fund (PSF).
4.9 Nafed has undertaken major procurement of Pulses under PSF during Kharif-2016 which is more than
70% of the total Pulses procured under PSF by all the agencies. The details of Procurement are as under:
Commodity Season Quantity Procured (MT)Loose Value
(` Lakh)
Gram Rabi - 2016 20260.92 11965.00
Masoor Rabi - 2016 2987.53 1646.98
Moong Kharif - 2016 120594.23 57885.23
Urad Kharif - 2016 59594.93 37670.71
Toor Kharif - 2016 661431.14 305942.26
Grand Total 864868.75 415110.18
4.10 During the year as per the Directions of Department of Consumer Affairs, Govt. of India, a quantity of
1020.838 MT of Urad, 2487.531 MT of Toor & 6190.35 MT of Gram procured under PSF during Kharif-15 & Rabi-16
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were allocated and lifted by the State Governments / Central Agencies for distribution of whole / milled pulses
at subsidized rates. Besides, a quantity of 14131.297 MT of Gram procured under PSF during Rabi-15 season was
disposed in open market through e-auction on NeML portal.
Management of Buffer stock of Pulses under PSF by NAFED
4.11 NAFED is having expertise of more than 30 years of procurement of Pulses under Price Support
Scheme (PSS). NAFED undertakes procurement of Pulses from the farmers in APMC mandies through State
Level Marketing Federations and Primary Level Cooperative Societies. So, NAFED is having a wide network of
Cooperatives for undertaking the procurement of Pulses even in the remotest part of the Country.
4.12 NAFED has undertaken procurement of 8.65 Lakh MT of Pulses under PSF and 8268 MT of Pulses
under PSS i.e. total 8.73 Lakh MT of Pulses during Kharif 2016-17 which is a record in the history of Pulses
procurement in the Country. NAFED has undertaken more than 70 % of the domestic procurement of Pulses
under PSF comparing to other Agencies like FCI and SFAC. So, NAFED is quite competent and well equipped for
procurement of Pulses across the Country to create the desired Buffer Stock of Pulses to the satisfaction of Govt.
of India.
4.13 The stocks of Pulses procured are stored in CWC/SWC warehouses that follow their standard operating
procedure and protocol for safe storage and preservation of Pulses. NAFED can hire the godowns of CWC/SWC
preferably by negotiating the warehouse rent at par with the rent offered by the Private warehousing service
provider. Alternately, Private warehouses accredited by Warehousing Development and Regulatory Authority
(WDRA) can be hired through a competitive Bidding Process. NAFED representative will carry out the inspection
of the stock stored in warehouses on monthly basis to ensure that the stocks are stored in a safe manner.
4.14 NAFED has empanelled over 200 Millers across the Country to undertake milling and supply of Milled
Pulses as per the quality & packing specifications and destination given by the concerned State Government
and Central Govt. Organizations. The work of Milling and Supply of Pulses is assigned to the empanelled Millers
through e-auction Portal customized by NAFED on the basis of highest out-turn ratio of Milled Pulses offered
by the empanelled millers. This portal is taking care of the entire chain of Supply of Milled Pulses right from the
assaying of Raw Pulses in the godowns up to delivery of the Milled Pulses at the given destination.
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4.15 The portal being used for inviting bids from the empanelled Millers for milling of Pulses is having
sufficient capability for conducting e-auction for disposal of Whole/Raw Pulses. Presently, pulses procured under
PSF/PSS are being disposed off through the e-auction portal of NCDEX e-Market Limited (NeML) who are having
a huge base of empanelled buyers. NAFED has empanelled a large number of buyers of Pulses and more can be
enrolled in order to create maximum number of prospective buyers of Pulses.
Foodgrains
Purchases
4.16 During the year 2016-17, NAFED purchased 108342.16 MTs Foodgrains such as Paddy valued at ̀ 169.73
Crore in Agency Consignment account. The details are given as under:
(Qty. in MTs/Value in ` Lakh)
S.No. Commodity Procured Quantity Value
OUTRIGHT
1. Paddy (PSS)* 108342.16 1 6973.05
TOTAL 108342.16 16973.05
*Paddy was procured at MSP under PSS as one of the State Agencies of FCI in the State of West Bengal and Uttar Pradesh.
Sales
4.17 During the year 2016-17, NAFED sold 68318.72 MTs Foodgrains such as Paddy (CMR) valued at ` 153.92
Crore in Agency Consignment account. The details are given as under:
12 AnnuAl report 2016-17
(Qty. in MTs/Value in ` Lakh)
S.No. CommodityDeliveredQuantity
Value Gross Profit / loss
OUTRIGHT
1. Paddy (CMR) PSS* 68318.72 15392.07 167.42
TOTAL 68318.72 15392.07 167.42
*The stocks of CMR procured under MSP were delivered to FCI/State Govt. of West Bengal and Uttar Pradesh.
Pulses & Oilseeds
Purchases
4.18 During the year 2016-17, a total quantity of 515.93 MTs of assorted pulses valuing ` 438.46 Lakh were
purchased in outright account. No purchase of oilseed under outright account has been made during the year
2016-17.
Sales
4.19 During the year 2016-17, a total quantity of 483.25 MTs of assorted pulses valuing ` 483.43 Lakh was
sold in outright account.
Horticulture
Procurement of onion under PSF during Rabi 2016 and its disposal
4.20 As per direction of Department of Agriculture, Cooperation and Farmers Welfare, Govt. of India, Nafed
procured 5180.895 MTs of onion directly from the farmers in open auction in Lasalgaon, Pimpalgaon and Kalwan
mandies, District of Nasik, Maharashtra during Rabi 2016. Procured onion stocks, after preliminary sorting and
grading were stored in Nafed’s own/ hired onion storage godown at Lasalgaon, Pimpalgaon and Kalwan. Strict
monitoring of procurement price and quality of onion during procurement and storage was ensured.
4.21 Tie-up arrangements were made with Mother Dairy (SAFAL) for disposal of stored onion stock through
their outlets at Delhi. Stocks of Onion were also sold through adhat shop at Azadpur and branches in upcountry
centers which had a positive impact in restricting the price rise of Onion.
4.22 Nafed earned service charge of ` 10.70 Lakh and storage charges of ` 22.55 Lakh in this operation.
Other Fruits & Vegetables
4.23 NAFED, Azadpur branch sold fruits & vegetables (Rs.785.02 Lakh) & Nasik Branch supplied Onion (` 5.45
Lakh) of total valuing ` 790.47 Lakh and earned a total profit of ` 40.49 Lakh during the year 2016-17.
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Moong Procurement
Ground Nut Procurement in Gujarat
Ground Nut in Gujarat Mandi
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Spices
Purchases
4.24 During the year 2016-17, NAFED procured a Qty of 141.91 MTs valuing ` 354.21 Lakh of different Spices
in its commercial account as per details given below.
S.No Commodity Quantity in MTs Value in ` Lakh
1 Black pepper 36.04 247.27
2 Dry Ginger 85.47 99.57
3 Methiseed 19.75 6.62
4 Turmeric 0.65 0.75
Total: 141.91 354.21
Sales
4.25 During the year 2016-17 a quantity of 141.30 MTs spices sold in domestic market at ` 372.29 Lakh and earned profit of ` 16.71 Lakh as per details given below:
S.No Commodity Quantity in MTs Value in ` Lakh Profit (Gross) in ` Lakh
1 Black pepper 36.05 251.96 4.29
2 Dry Ginger 85.50 112.43 11.70
3 Methiseed 19.75 7.90 0.72
Total 141.30 372.29 16.71
Seeds & Planting Material
4.26 NAFED has been undertaking production and distribution of certified seeds. NAFED has been nominated
as one of the Central Seed Production Agency by Department of Agriculture Cooperation and Farmers Welfare,
Govt. of India.
4.27 During the year 2016-17, NAFED has undertaken seed business mainly through NBF Indore branch’s
empanelled seed producers under centrally sponsored scheme NMOOP (149.968 MTs valuing ` 62.50 Lakh) and
NFSM (2883.24 MTs valuing ` 3174.78 Lakh) to meet the requirement of Government Departments /Institutions.
The total turnover of seed business was 3033.208 MTs valuing ` 3237.28 Lakh during the year 2016-17.
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Cotton
PSS
4.28 Nafed continued to be a nodal agency of the Government of India, in addition to Cotton Corporation of
India (CCI), for procurement of Cotton at Minimum Support Price (MSP) under PSS during Cotton season 2016-17.
Department of Agriculture, Cooperation and Farmers Welfare (DAC & FW), Ministry of Agriculture and Farmers
Welfare, Govt of India has issued guidelines during July 2014 for implementation of Price Support Scheme in
respect of Oil Seeds, Pulses & Cotton. As per the guidelines, certain responsibilities have been assigned to the
State Govt., and State Govt. has to send the compliance to DAC&FW. Thereafter, DAC&FW has to issue further
directions and approval to NAFED for procurement of cotton under PSS.
4.29 After issuance of PSS guidelines in the year 2014, NAFED has not received any proposal from State Govt.
and directions & approval of DAC & FW for procurement of Cotton under PSS. Therefore, procurement of Cotton
under PSS has not been undertaken by NAFED after 2012-13.
Consumer Marketing
4.30 Consumer Marketing Division continued to sell quality consumer products of daily need at affordable
rates through the network of its branches and retails outlets located in Delhi and Shimla. It also catered to the
consumer at their doorstep by running a couple of mobile retail shops in Delhi. The Division also continued to
About Us Nafed - Apex Organisation of Marketing Cooperatives
in India Established on 2nd, October 1958 National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) is an Apex Organisation of Marketing Cooperatives in the country engaged in marketing of agricultural com-modities both in the domestic as well as overseas markets with the prime objective of providing marketing support to the farmers to help them fetch reasonable price for their produce.
NAFED operates with its Head Office at New Delhi and Branches and sub offices located in the state capitals and other important cities across India.
Business Activities of NAFED Nafed's business activities can be broadly classi�ed into
Domestic Trade and International Trade
Domestic Trade Nafed's Business activities consists of Outright, Joint Venture,
Agency/Consignment
Implementation of Price Support Scheme/Market Intervention Scheme on behalf of Government of India involving State Level Cooperatives & Primary Level Cooperatives Marketing Societies to bene�t the farmers for getting remunera-tive price of their produce.
Procurement under Price Stabilisation Fund (PSF) on behalf of the Government.
Procurement of Paddy on behalf of FCI
Organize Production and Marketing of Certi�ed Seeds
Procurement of Agri-commodities on commercial basis from farmers in open auction from APMC mandies
Nafed purchases & blends tea in Guwahati and distributes/markets throughout the country
Price Support Scheme (PSS)NAFED Tea
CONSUMER MARKETING
ASSAM (CTC) TEA
Central Agency of the Government of India for procurement of 16 noti�ed Agricultural Commodities at the declared MSP under PSS.
OILSEEDS – Mustard seed, Sa�ower seed, Toria, Soyabean Groundnut, Sun�ower seed, Sesame seed, Niger seed, Copra and De-husked Coconut \
PULSES – Gram, Masoor, Moong, Arhar and Urad COTTON Provides regular Marketing support to the farmers by ensuring Minimum
Support Price declared by Government for Rabi and Kharif season Ensures maximum coverage throughout the country including remotest areas
of Lakshadweep and Andaman & Nicobar Islands Purchases directly from the farmers without involving Arhatiyas/Middlemen. Involves State Level Cooperatives and Primary Level Cooperative Marketing
Societies for procurement at MSP Payment to the farmers by Account Payee cheques only. Millions of farmers bene�tted by MSP operations by NAFED since 1976-1977 State Govt. has to comply with the PSS guidelines for undertaking procure-
ment under PSS.
Price Stabilization Fund Management Committee (PSFMC), Department of Agriculture, Cooperation and Farmer's Welfare (DAC&FW), GOl has nominated NAFED and SFAC as central agencies for procurement of Onion. NAFED, FCI and SFAC were designated as central agencies for procurement of Urad and Toor under P.S.F. scheme since 2015-2016 at the prevailing market rates as per the quality specifications decided by DAC&FW for buffer stocking and making efforts to control the prices of Pulses.
NAFED has ventured into consumer marketing as a step towards diversification of its activities to make available essential items of daily need to the consumers at affordable rates. Presently NAFED is running four outlets in Delhi and two in Shimla in the name of "NAFED BAZAAR". Besides direct retailing, NAFED is also supplying grocery and other items to prestigious institutions in the country including reputed Hospitals, Public Sector Undertakings, Schools, Hostels, etc. Nafed arranges sale of grocery and other items also through mobile vans which carry stocks to various institutions, own outlets and to different residential colonies for making available essential commodities at affordable prices to the consumers. In order to stabilize retail prices, NAFED also arranges sale of items of daily needs like onion, pulses etc. at cheaper rates to the consumers.
International Trade
Procurement of Pulses & Oilseeds
Nafed undertakes export of various Agricultural Commodities including Onion, Foodgrains, Spices, Fruits and Vegetables etc. as and when the situation so warrants. It also undertakes import of Agricultural Commodities as and when domestic situation arises.
One of the most important consumer products is NAFED Brand Tea. Nafed has its own Blending Unit at Guwahati. Guwahati Branch purchases Tea (different varieties) directly from the Guwahati Tea Auction Board and after blending/mixing & going through various processes of testing, good quality Tea is prepared.
Presently, we are marketing Tea of three varieties namely “NAFED CTC”, "NAFED PREMIUM" and "NAFED AROMO GOLD" and also added NAFED Brand TEA BAGS in seven flavours - Assam CTC, Green Tea, Green Tea (Tulsi), Green Tea (Lemon), Earl Grey, English Breakfast Tea and Masala Tea throughout India.
Price Stabilization Fund Scheme of Govt. of India (PSF)
Objective
Qty. Value Qty Value Qty. Value2012-13 95861 40493 77233 39406 173094 798992013-14 49819 21422 379402 156576 429221 1779982014-15 313917 97303 12098 4552 326015 1018552015-16 4242 1591 4242 15912016-17 8268 4320 222168 94671 230436 98991Total 467865 163539 685143 296795 1163008 460334
Pulses Oilseeds TotalYear
To organize, promote and develop Agricultural Marketing and provide Marketing support to the farmers in close coordination with State Cooperatives, Marketing Federations, State and Regional level Commodity Federations, Tribal Cooperatives and Member Cooperative Marketing Societies covering all important Primary and Secondary Markets in the country.
Black tea is plucked from a plant called Camellia Sinensis and then CTC tea is made using the "Crush Tear and Curl" (CTC) method. CTC tea is commonly produced in Assam. Crush Tear Curl (Sometimes cut,tear ,curl) is a method of processing black tea in which the leaves are passed through a series of cylindrical rollers with hundreds of sharp teeth that crush , tear
and curl the tea into small, hard pellets. Fluoride is present in the tea and its good for teeth, protects from cavities' as well as fight decay in teeth. Drinking CTC tea hydrates the body, moisturise the skin, fends of stress, balances the hormone level. It can help reduce stroke risks,as it balances the cholesterol level. Moreover the astringency of tea helps balance oily fatty components of rich food items.
Qty. Value2015-16 21771 191622016-17 884095 458000Total 905866 477162
PulsesYear
Price Support Scheme Price Stabilization Fund Scheme
0
50000
100000
150000
200000
250000
300000
350000
400000
2012-13 2013-14 2014-15 2015-16 2016-17
QTY
.IN L
AKH
MT
/ VAL
UE IN
RS.
LAKH
YEAR
Pulses Qty.
Pulses Value
Oilseeds Qty.
Oilseeds Value
0
200000
400000
600000
800000
1000000
2015-16 2016-17
QT
Y.
IN L
AK
H M
T/V
ALU
E IN
RS.
LA
KH
YEAR
Pulses Qty.
Pulses Value
About Us Nafed - Apex Organisation of Marketing Cooperatives
in India Established on 2nd, October 1958 National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) is an Apex Organisation of Marketing Cooperatives in the country engaged in marketing of agricultural com-modities both in the domestic as well as overseas markets with the prime objective of providing marketing support to the farmers to help them fetch reasonable price for their produce.
NAFED operates with its Head Office at New Delhi and Branches and sub offices located in the state capitals and other important cities across India.
Business Activities of NAFED Nafed's business activities can be broadly classi�ed into
Domestic Trade and International Trade
Domestic Trade Nafed's Business activities consists of Outright, Joint Venture,
Agency/Consignment
Implementation of Price Support Scheme/Market Intervention Scheme on behalf of Government of India involving State Level Cooperatives & Primary Level Cooperatives Marketing Societies to bene�t the farmers for getting remunera-tive price of their produce.
Procurement under Price Stabilisation Fund (PSF) on behalf of the Government.
Procurement of Paddy on behalf of FCI
Organize Production and Marketing of Certi�ed Seeds
Procurement of Agri-commodities on commercial basis from farmers in open auction from APMC mandies
Nafed purchases & blends tea in Guwahati and distributes/markets throughout the country
Price Support Scheme (PSS)NAFED Tea
CONSUMER MARKETING
ASSAM (CTC) TEA
Central Agency of the Government of India for procurement of 16 noti�ed Agricultural Commodities at the declared MSP under PSS.
OILSEEDS – Mustard seed, Sa�ower seed, Toria, Soyabean Groundnut, Sun�ower seed, Sesame seed, Niger seed, Copra and De-husked Coconut \
PULSES – Gram, Masoor, Moong, Arhar and Urad COTTON Provides regular Marketing support to the farmers by ensuring Minimum
Support Price declared by Government for Rabi and Kharif season Ensures maximum coverage throughout the country including remotest areas
of Lakshadweep and Andaman & Nicobar Islands Purchases directly from the farmers without involving Arhatiyas/Middlemen. Involves State Level Cooperatives and Primary Level Cooperative Marketing
Societies for procurement at MSP Payment to the farmers by Account Payee cheques only. Millions of farmers bene�tted by MSP operations by NAFED since 1976-1977 State Govt. has to comply with the PSS guidelines for undertaking procure-
ment under PSS.
Price Stabilization Fund Management Committee (PSFMC), Department of Agriculture, Cooperation and Farmer's Welfare (DAC&FW), GOl has nominated NAFED and SFAC as central agencies for procurement of Onion. NAFED, FCI and SFAC were designated as central agencies for procurement of Urad and Toor under P.S.F. scheme since 2015-2016 at the prevailing market rates as per the quality specifications decided by DAC&FW for buffer stocking and making efforts to control the prices of Pulses.
NAFED has ventured into consumer marketing as a step towards diversification of its activities to make available essential items of daily need to the consumers at affordable rates. Presently NAFED is running four outlets in Delhi and two in Shimla in the name of "NAFED BAZAAR". Besides direct retailing, NAFED is also supplying grocery and other items to prestigious institutions in the country including reputed Hospitals, Public Sector Undertakings, Schools, Hostels, etc. Nafed arranges sale of grocery and other items also through mobile vans which carry stocks to various institutions, own outlets and to different residential colonies for making available essential commodities at affordable prices to the consumers. In order to stabilize retail prices, NAFED also arranges sale of items of daily needs like onion, pulses etc. at cheaper rates to the consumers.
International Trade
Procurement of Pulses & Oilseeds
Nafed undertakes export of various Agricultural Commodities including Onion, Foodgrains, Spices, Fruits and Vegetables etc. as and when the situation so warrants. It also undertakes import of Agricultural Commodities as and when domestic situation arises.
One of the most important consumer products is NAFED Brand Tea. Nafed has its own Blending Unit at Guwahati. Guwahati Branch purchases Tea (different varieties) directly from the Guwahati Tea Auction Board and after blending/mixing & going through various processes of testing, good quality Tea is prepared.
Presently, we are marketing Tea of three varieties namely “NAFED CTC”, "NAFED PREMIUM" and "NAFED AROMO GOLD" and also added NAFED Brand TEA BAGS in seven flavours - Assam CTC, Green Tea, Green Tea (Tulsi), Green Tea (Lemon), Earl Grey, English Breakfast Tea and Masala Tea throughout India.
Price Stabilization Fund Scheme of Govt. of India (PSF)
Objective
Qty. Value Qty Value Qty. Value2012-13 95861 40493 77233 39406 173094 798992013-14 49819 21422 379402 156576 429221 1779982014-15 313917 97303 12098 4552 326015 1018552015-16 4242 1591 4242 15912016-17 8268 4320 222168 94671 230436 98991Total 467865 163539 685143 296795 1163008 460334
Pulses Oilseeds TotalYear
To organize, promote and develop Agricultural Marketing and provide Marketing support to the farmers in close coordination with State Cooperatives, Marketing Federations, State and Regional level Commodity Federations, Tribal Cooperatives and Member Cooperative Marketing Societies covering all important Primary and Secondary Markets in the country.
Black tea is plucked from a plant called Camellia Sinensis and then CTC tea is made using the "Crush Tear and Curl" (CTC) method. CTC tea is commonly produced in Assam. Crush Tear Curl (Sometimes cut,tear ,curl) is a method of processing black tea in which the leaves are passed through a series of cylindrical rollers with hundreds of sharp teeth that crush , tear
and curl the tea into small, hard pellets. Fluoride is present in the tea and its good for teeth, protects from cavities' as well as fight decay in teeth. Drinking CTC tea hydrates the body, moisturise the skin, fends of stress, balances the hormone level. It can help reduce stroke risks,as it balances the cholesterol level. Moreover the astringency of tea helps balance oily fatty components of rich food items.
Qty. Value2015-16 21771 191622016-17 884095 458000Total 905866 477162
PulsesYear
Price Support Scheme Price Stabilization Fund Scheme
0
50000
100000
150000
200000
250000
300000
350000
400000
2012-13 2013-14 2014-15 2015-16 2016-17
QTY
.IN L
AKH
MT
/ VAL
UE IN
RS.
LAKH
YEAR
Pulses Qty.
Pulses Value
Oilseeds Qty.
Oilseeds Value
0
200000
400000
600000
800000
1000000
2015-16 2016-17
QT
Y.
IN L
AK
H M
T/V
ALU
E IN
RS.
LA
KH
YEAR
Pulses Qty.
Pulses Value
About Us Nafed - Apex Organisation of Marketing Cooperatives
in India Established on 2nd, October 1958 National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) is an Apex Organisation of Marketing Cooperatives in the country engaged in marketing of agricultural com-modities both in the domestic as well as overseas markets with the prime objective of providing marketing support to the farmers to help them fetch reasonable price for their produce.
NAFED operates with its Head Office at New Delhi and Branches and sub offices located in the state capitals and other important cities across India.
Business Activities of NAFED Nafed's business activities can be broadly classi�ed into
Domestic Trade and International Trade
Domestic Trade Nafed's Business activities consists of Outright, Joint Venture,
Agency/Consignment
Implementation of Price Support Scheme/Market Intervention Scheme on behalf of Government of India involving State Level Cooperatives & Primary Level Cooperatives Marketing Societies to bene�t the farmers for getting remunera-tive price of their produce.
Procurement under Price Stabilisation Fund (PSF) on behalf of the Government.
Procurement of Paddy on behalf of FCI
Organize Production and Marketing of Certi�ed Seeds
Procurement of Agri-commodities on commercial basis from farmers in open auction from APMC mandies
Nafed purchases & blends tea in Guwahati and distributes/markets throughout the country
Price Support Scheme (PSS)NAFED Tea
CONSUMER MARKETING
ASSAM (CTC) TEA
Central Agency of the Government of India for procurement of 16 noti�ed Agricultural Commodities at the declared MSP under PSS.
OILSEEDS – Mustard seed, Sa�ower seed, Toria, Soyabean Groundnut, Sun�ower seed, Sesame seed, Niger seed, Copra and De-husked Coconut \
PULSES – Gram, Masoor, Moong, Arhar and Urad COTTON Provides regular Marketing support to the farmers by ensuring Minimum
Support Price declared by Government for Rabi and Kharif season Ensures maximum coverage throughout the country including remotest areas
of Lakshadweep and Andaman & Nicobar Islands Purchases directly from the farmers without involving Arhatiyas/Middlemen. Involves State Level Cooperatives and Primary Level Cooperative Marketing
Societies for procurement at MSP Payment to the farmers by Account Payee cheques only. Millions of farmers bene�tted by MSP operations by NAFED since 1976-1977 State Govt. has to comply with the PSS guidelines for undertaking procure-
ment under PSS.
Price Stabilization Fund Management Committee (PSFMC), Department of Agriculture, Cooperation and Farmer's Welfare (DAC&FW), GOl has nominated NAFED and SFAC as central agencies for procurement of Onion. NAFED, FCI and SFAC were designated as central agencies for procurement of Urad and Toor under P.S.F. scheme since 2015-2016 at the prevailing market rates as per the quality specifications decided by DAC&FW for buffer stocking and making efforts to control the prices of Pulses.
NAFED has ventured into consumer marketing as a step towards diversification of its activities to make available essential items of daily need to the consumers at affordable rates. Presently NAFED is running four outlets in Delhi and two in Shimla in the name of "NAFED BAZAAR". Besides direct retailing, NAFED is also supplying grocery and other items to prestigious institutions in the country including reputed Hospitals, Public Sector Undertakings, Schools, Hostels, etc. Nafed arranges sale of grocery and other items also through mobile vans which carry stocks to various institutions, own outlets and to different residential colonies for making available essential commodities at affordable prices to the consumers. In order to stabilize retail prices, NAFED also arranges sale of items of daily needs like onion, pulses etc. at cheaper rates to the consumers.
International Trade
Procurement of Pulses & Oilseeds
Nafed undertakes export of various Agricultural Commodities including Onion, Foodgrains, Spices, Fruits and Vegetables etc. as and when the situation so warrants. It also undertakes import of Agricultural Commodities as and when domestic situation arises.
One of the most important consumer products is NAFED Brand Tea. Nafed has its own Blending Unit at Guwahati. Guwahati Branch purchases Tea (different varieties) directly from the Guwahati Tea Auction Board and after blending/mixing & going through various processes of testing, good quality Tea is prepared.
Presently, we are marketing Tea of three varieties namely “NAFED CTC”, "NAFED PREMIUM" and "NAFED AROMO GOLD" and also added NAFED Brand TEA BAGS in seven flavours - Assam CTC, Green Tea, Green Tea (Tulsi), Green Tea (Lemon), Earl Grey, English Breakfast Tea and Masala Tea throughout India.
Price Stabilization Fund Scheme of Govt. of India (PSF)
Objective
Qty. Value Qty Value Qty. Value2012-13 95861 40493 77233 39406 173094 798992013-14 49819 21422 379402 156576 429221 1779982014-15 313917 97303 12098 4552 326015 1018552015-16 4242 1591 4242 15912016-17 8268 4320 222168 94671 230436 98991Total 467865 163539 685143 296795 1163008 460334
Pulses Oilseeds TotalYear
To organize, promote and develop Agricultural Marketing and provide Marketing support to the farmers in close coordination with State Cooperatives, Marketing Federations, State and Regional level Commodity Federations, Tribal Cooperatives and Member Cooperative Marketing Societies covering all important Primary and Secondary Markets in the country.
Black tea is plucked from a plant called Camellia Sinensis and then CTC tea is made using the "Crush Tear and Curl" (CTC) method. CTC tea is commonly produced in Assam. Crush Tear Curl (Sometimes cut,tear ,curl) is a method of processing black tea in which the leaves are passed through a series of cylindrical rollers with hundreds of sharp teeth that crush , tear
and curl the tea into small, hard pellets. Fluoride is present in the tea and its good for teeth, protects from cavities' as well as fight decay in teeth. Drinking CTC tea hydrates the body, moisturise the skin, fends of stress, balances the hormone level. It can help reduce stroke risks,as it balances the cholesterol level. Moreover the astringency of tea helps balance oily fatty components of rich food items.
Qty. Value2015-16 21771 191622016-17 884095 458000Total 905866 477162
PulsesYear
Price Support Scheme Price Stabilization Fund Scheme
0
50000
100000
150000
200000
250000
300000
350000
400000
2012-13 2013-14 2014-15 2015-16 2016-17
QTY
.IN L
AKH
MT
/ VAL
UE IN
RS.
LAKH
YEAR
Pulses Qty.
Pulses Value
Oilseeds Qty.
Oilseeds Value
0
200000
400000
600000
800000
1000000
2015-16 2016-17
QT
Y.
IN L
AK
H M
T/V
ALU
E IN
RS.
LA
KH
YEAR
Pulses Qty.
Pulses Value
Total Turnover of Seeds & Planting Material
149.968
3033.208
62.50
3237.28 2883.24
3174.78
QTY in MTs
Value in ` Lakh
16 AnnuAl report 2016-17
supply grocery and other items to various leading Hospitals, Hotels, Public Sector Undertakings, Schools, Hostels
etc. During the year, total turnover of Consumer Marketing was ` 16.52 Crore.
Poultry Products
4.31 Consumer Marketing Division is also supplying Eggs to the chain of E.S.I Hospitals, RML Hospital and
various Institutions. The total purchase value of eggs was ̀ 199.56 Lakh and total sale value of eggs was ̀ 225.53
Lakh during the year 2016-17.
Miscellaneous Commodities
Purchases
4.32 Nafed procured a quantity of 1075.19 MTs of various miscellaneous commodities valued at ` 1626.96
Lakh in outright account during the year 2016-17 as per details given below:
Commodity Quantity (MTs) Value (` Lakh)
Misc. Items: like Rice, Pulses, Oil, Spices and Dry fruit etc. - 1318.86
Salt 50.38 7.98
Sugar 154.81 62.07
Tea 870.00 238.05
Total 1075.19 1626.96
Sales
4.33 Nafed sold various miscellaneous commodities valuing ` 1691.43 Lakh in outright account during the
year 2016-17, as per details given below:
Commodity Quantity (MTs) Value (` Lakh)Profit (Gross)
(` Lakh)
Misc. Items: like Rice, Pulses, Oil, Spices and Dry fruit etc. - 1392.98 136.27
Salt 52.07 9.34 1.01
Sugar 160.88 77.78 13.40
Tea 128.36 211.33 26.26
Total 341.31 1691.43 176.94
International Trade
Exports
4.34 Export of onion from the country is de-canalized vide notification No. 73(RE-2013) 2009-2014 dated
12.03.2014, issued by DGFT, Ministry of Commerce, Government of India and export was allowed without any
MEP.
17AnnuAl report 2016-17
4.35 No export business of Horticulture and other commodities has been undertaken during the year
2016-17.
Industrial and Warehousing Units
Nafed Bio-Fertilizer, Indore
4.36 The products of NAFED Bio-Fertilizer, Indore viz , Rhizobium, Azotobactor and PSB continued enjoying
the popularity amongst the farming community of India during the year 2016-17 also despite the prevalent
cut-throat competition in the trade. The item PSB manufactured by the Unit enhances the effectiveness of
expensive chemical fertilizers like Single Super Phosphate and DAP, has excellent market potential. Being organic
fertilizer and soil friendly, it also enhances soil fertility and ultimately productivity.
4.37 The NBF products are marketed through branches /centers located at various places to facilitate proper
and timely distribution to the buyers in different parts of the country. The NAFED Bio-Fertilizer has also started
the production and marketing of liquid Bio-Fertilizers and other items required for the farming community. The
Bio-Fertilizer unit is facilitating the farmers to improve their productivity as well as quality of their products to
greater extent.
4.38 The total turnover of NBF Unit in Bio-Fertilizer products during the year 2016-17 was to the tune of
` 127.98 Lakh.
Cold Storage, Delhi
4.39 Cold Storage located at Lawrence Road, Delhi generated earnings of ` 90.69 Lakh in the year 2016-17.
Nafed Warehousing & Processing Industries, Vashi
4.40 This unit is utilized for storage of agricultural commodities. A part of this Complex is being used as
bonded Warehouses by the Department of Customs. One cold storage is located in the complex. The total
income generated by this Unit by way of rental income for the warehousing activities during the year 2016-17
was of the order of ` 161.07 Lakh.
Nafed Pre - cooling and Cold Storage, Pimpalgaon, Nasik
4.41 This unit has been set up to undertake grading, processing and cold storage facilities of Grapes for
exports as well for domestic market. The total income generated during the year 2016-17 was ` 10.33 Lakh.
Raichur Co-operative Oil Complex, Raichur, Karnataka
4.42 The rental income received by way of undertaking warehousing activates in this unit during the year
2016-17 was of ` 11.61 Lakh
18 AnnuAl report 2016-17
Project & Property
4.43 Nafed owns 17 freehold and 25 leasehold properties in the form of office premises, godowns, industrial
units, plots, onion storage structure, cold storages as well as residential in different parts of the country.
4.44 In addition to use these properties in the form of office premises, industrial units, godowns, etc. most of
the vacant properties have been rented / leased which resulted in annual revenue generation of ` 6.37 Crore
during the year 2016-17.
NAFED’S PERFOMANCE DURING 2012-2013 TO 2016-2017(` in Lakh)
Particulars 2012-13 2013-14 2014-15 2015-16 2016-17
1. Share Capital 2174.71 2182.83 2406.48 2417.71 2428.11
2. Reserve and Other Funds (-)1812.12 (-)17418.07 (-) 34473.16 (-) 50554.61 (-) 65771.53
3. Gross Profit 6458.65 5838.50 2057.24 1648.87 14917.33
4. Net Profit / Loss (-) (-)14991.51 (-)16613.99 (-)15667.57 (-) 14806.68 (-) 4074.74
5. Business Turnover 108123.17 151886.07 251637.81 54418.27 50476.71
Hindi
4.45 The work of Hindi Translation as and when required has been outsourced.
Human Resource Development
4.46 HRD Section has compiled the data of each employee of the Federation vis-a-vis qualification, expertise,
etc. in order to plan the training needs of an individual keeping in view the needs and requirements of the
Federation so as to achieve the desired results.
Value in
` Lakh
19AnnuAl report 2016-17
4.47 HRD also encourages students from across the Universities and Colleges to avail opportunities of self
development by taking up projects in various Departments based on their interest and qualification which are
in turn beneficial to the Federation.
4.48 During 2016-17, 13 officers / employees of the Federation were deputed for short term training courses
organized by CICTAB, IIFT and other reputed institutions.
4.49 Campus interviews were held for recruitment of Management Trainees and a process to recruit skilled
manpower with specialization in Consumer and Retail Marketing, Foreign Trade, HR, Logistics and Warehousing
and Finance has been initiated.
Personnel
4.50 Personnel Division acts as a back bone of an Organization. It plays a vital role to rationalize the requisite
manpower in its various Divisions in Head Office and Branches on real time basis so as to optimize per employee
profit to the Federation.
4.51 During the year 2016-17, 43 employees have retired / resigned / expired. Nafed’s Personnel Department
has always taken pro-active steps to overcome any such situation leading to manpower shortage and resolve
the same timely.
4.52 Manpower strength of the Federation as on 31.3.2017 was 306 employees against 471 approved
manpower budget. In addition, casual / consolidated / outsourced engagements of skilled manpower are also
undertaken as and when there is a work pressure due to increasing business activities.
4.53 During the year 2016-17 the meetings of Departmental Promotion Committee were held after gap of
more than four years and 170 eligible employees were promoted to the different posts.
4.54 Separate Grievances Cell has been established to resolve the grievances of employees. Personnel
Division has also taken care to provide medical assistance to employees at all levels by empanelling number of
hospitals at different locations for their welfare.
Exhibition at Jhunjhunu, Rajasthan Launch of Nafed Brand Tea
20 AnnuAl report 2016-17
Public Relations
4.55 With a view to spread awareness about the role of Nafed amongst Farmers/Consumers, we participated
in various Exhibitions / Kisan Melas during the year such as “Krishi Samriddhi Rashtriya Krishi Mela 2017” at
Chattisgarh, “Rajasthan Srijan 2017” at Jhunjhunu, Rajasthan, “8th Agrovision at Nagpur (Maharashtra), “Vibrant
North East” at Guwahati, “Krishi Unnati Mela” , IITF through Agriculture Pavilion, Pragati Maidan, New Delhi, India
Today Agro Summit and Awards (Agrl. Conclave 2017) and other Kisan Melas.
4.56 Various types of publicity materials such as Banners, Brochures and Standees etc. were designed and
printed and are being used for display/distribution in Exhibitions/Agricultural Fairs. Similarly, new design of
2017 Table Diaries and Organizers were got printed on the eve of New Year 2017 and distributed. Annual Report
of Nafed was also redesigned and given a complete facelift with multi- color printing.
Information Technology
4.57 Since our Computers’ hardware as well as software were very old and had become obsolete, new
computers, servers, printers etc. were procured for installation in H.O. and the Branches.
4.58 Due to frequent disruptions in our internet and email services, we have migrated to new mail server to
ensure seamless email services to the users. A new Internet connection with 8 MBPS lease line has been obtained
and a new mailing address with “nafed-india.com” domain has been started and is being used successfully. CMD
Software for Nafed Bazaars and E-dak services are also being implemented. New Nafed Website was got re-
designed with dynamic features. Latest Servers, Firewall was installed and running on 24x7 basis. Daily Tenders/
News regarding purchase and disposal of agricultural commodities are uploaded on our Web-site.
Library
4.59 Nafed Library provides various types of services for the readers for their reference purpose and current
awareness by stocking books, agricultural reports, journals, magazines and periodicals which are important
for the employees and are available for reference and borrowing. Daily press clippings regarding agricultural
commodities and news relating to Nafed were circulated to the business sections.
NHRDF
4.60 The National Horticultural Research and Development Foundation (NHRDF) is a National level
Organization established by National Agricultural Co-op. Marketing Federation of India Ltd. (NAFED) and its
Associate Shippers on 3rd November, 1977 under the Societies Registration Act, 1860 at New Delhi with a view
to carry out Research and Development activities on various export oriented horticultural crops thereby to
increase their yield and quality as also export. Onion and garlic are the two major crops being researched and
developed by the Foundation for the past 4 decades. It has also started work on other export oriented crops like
Okra, French bean, Bitter gourd, Chilli and Babycorn.
21AnnuAl report 2016-17
4.61 The management of the NHRDF vests in the Managing Committee, which consists of 4 representatives
from NAFED wherein Managing Director is an Ex-officio, 5 from Associate Shippers (onion exporters), 6 from
progressive farmers engaged in cultivation of horticultural crops, 4 from eminent scientists / experts in related
fields and Director NHRDF is Member Secretary of the committee.
4.62 The NHRDF worked as Nodal Agency for implementing the Central Sector Scheme of Integrated
Development of Vegetables including Root and Tuber Crops (IDV) of the Ministry of Agriculture & Farmers
Welfare, Government of India from the year 2000-01 to 2004-05. The NHRDF has been designated as a National
Level Agency under the Mission for Integrated Development of Horticulture(MIDH) Scheme of the Ministry
of Agriculture & Farmers Welfare, Govt. of India for implementing different components of the MIDH through
different centres of NHRDF.The NHRDF has also been honoured as a National Level Agency for monitoring of
the vegetable development programmes under the National Vegetable Initiation for Urban Clusters (VIUC) of the
Ministry of Agriculture &Farmers Welfare, Government of India. The NHRDF is also a Voluntary Centre for conducting
Network Research Programmes under the All India Coordinated Research Programmes (Vegetable Crops) and All
India Network Research Project on Onion and Garlic (AINRPOG) of ICAR. NHRDF is also imparting training on
improved cultivation and post-harvest management of onion and garlic to the Agriculture and Horticulture
Officials of SAARC countries like Nepal, Bangladesh, Bhutan & Sri Lanka.
22 AnnuAl report 2016-17
Sunflower Procurement in Haryana
Packing of commodities
23AnnuAl report 2016-17
Godown/Stacking in Rajasthan
24 AnnuAl report 2016-17
MEMBERSHIP
5.1 Taking in the account the new membership / withdrawal during 2016-17, the membership of NAFED as
on 31.03.2017 stood at 854, which is as under:
S.No. Category of MembersTotal Number of Members as on
31.03.16
Total Number of Members as on
31.03.17
1. State Level Marketing Federations 25 25
2. Apex Level Marketing Federations 03 03
3. State Level Tribal & Commodity Federations 24 24
4. Primary Marketing/Processing Societies 793 800
5. NCCF & Other National Level Coop. Organizations 02 02
Total 847 854
For details of members, please see/visit our website : www.nafed-india.com
860
855
850
845
840
835
2012-13
847848 848
847
854
Growth in Membership during last 5 years
2013-14 2014-15 2015-16 2016-17
Chapter 5
25AnnuAl report 2016-17
MEETINGS OF BOARD OF DIRECTORS AND ANNUAL GENERAL BODY
6.1 NAFED convened various important meetings of Annual General Body, Board of Directors, Executive
Committee, Business Committee from time to time to lay down the policies and to conduct and review the
affairs of the Federation as per details below:-
MeetingsNumber of
meetings heldDate
Annual General Body 1 23.09.2016
Board of Directors 5
29.04.201627.08.201623.09.201616.11.201622.03.2017
Business Committee 327.08.201616.11.201622.03.2017
Executive Committee 327.08.201616.11.201622.03.2017
Finance, Accounts & Audit Committee - -
Project Committee - -
Chapter 6
Annual General Body Meeting
26 AnnuAl report 2016-17
Board of Directors Meeting
Annual General Body Meeting
27AnnuAl report 2016-17
Meeting of Southern State Federations
28 AnnuAl report 2016-17
Acknowledgement
The Federation places on record its appreciation for the valuable assistance & cooperation received by it during the year 2016-17 from its member constituents and all other cooperative organizations at the National, State and Primary-levels. NAFED is grateful to the Union Ministry of Agriculture, Cooperation & Farmers Welfare, Ministry of Consumer Affairs, Food & Public Distribution, Ministries of Commerce, Finance and External Affairs, whose Policies & Schemes for improving the economic level of the small farmers and tribals, have helped NAFED to achieve its objectives.
Similarly, NAFED would like to place on record its gratitude and appreciation for the cooperation and assistance rendered to it by the Agriculture & Cooperation Departments of the State Governments / UT Administrations, particularly in implementing Price Support Scheme. NAFED is also thankful to DGFT, RBI, NCDC, FCI, APEDA, IFFCO, KRIBHCO, SFAC, NHB, DMS, CWC and SWCs, Civil Supplies Corporations of State Governments, SBI, ICICI, IOB, Punjab & Sind Bank, PNB, UBI, Syndicate Bank, Dena Bank, Central Bank of India, Oriental Bank of Commerce, Bank of Maharashtra, State Bank of Bikaner & Jaipur, Federal Bank, South Indian Bank, State Cooperative Banks of various States and other institutions including business associates and Auditors, who have been extending their cooperation to NAFED in its various activities. The Board of Directors and Management of NAFED place their gratitude on record to all of them.
The Board of Directors also expresses their appreciation for the dedicated and devoted services rendered by the employees under the leadership of the Chairman and the Managing Director.
Chapter 7
29AnnuAl report 2016-17
List of the Members of Board of Directors (1st April 2016 to 31st March 2017)
1. Shri V.R. Patel, Chairman
2. Shri Dileep Sanghani, Vice-Chairman (Coopted)
3. Dr. Sunil Kumar Singh, Vice-Chairman
4. Dr. Bijender Singh, Ex-MLA
5. Dr. Chander Pal Singh Yadav, MP
6. Shri N.P. Patel
7. Shri R.S Joon
8. Shri Siby J. Monipally
9. Shri Ashok Thakur, Govt. Nominee
10. Shri Virendra Singh
11. Shri Jagjit Singh Sangwan
12. Shri Vishal Singh
13. Shri Ramakant Bhargava
14. Shri Ranjit Pandey
15. Shri Tejinder Singh Middu Khera (up to 31.08.2016)
Shri Gurkirat Kripal Singh (up to 22.03.2017)
Shri Gurchet Singh (w.e f. 22.03.2017)
16. Shri Karam Raj Khatana (up to 08.02.2017)
Shri Harvinder Kalyan, MLA (w.e.f.09.02.2017)
17. Shri Aditya Yadav
18. Shri K.V. Suryanarayan Raju
19. Shri Ellapatty M. Murugan
20. Shri Bhanwar Singh Shekhawat
21. Shri Nana Sahib Dattaji Patil
22. Shri Sanjeev Kumar Chadha, IFS, Managing Director
Coopted Directors
1. Shri Vithal Bhai Bodar
Functional Directors
1. Shri Sunil Kumar Singh
2. Shri S.K. Verma
3. Shri A.K. Rath
4. Shri A. K Jain
Chapter 8
30 AnnuAl report 2016-17
Annexure-I
Share Capital and Own Funds position during the last 5 years
(Value in ` Lakh )
Particulars 2012-13 2013-14 2014-15 2015-16 2016-17
Share Capital Contributors:
Cooperatives 2174.71 2182.83 2406.48 2417.71 2428.11
Total 2174.71 2182.83 2406.48 2417.71 2428.11
Reserve and Other Funds
Funds
Net Profit(+)/Loss (-)
(-)1812.12
(-)14991.51
(-) 1718.07
(-) 16613.99
(-) 34473.16
(-) 15667.57
(-) 50554.61
(-) 14806.68
(-) 65771.53
(-) 4074.74
Total Own Funds (-)14628.92 (-) 31849.23 (-) 47734.25 (-) 62943.58 (-) 67418.16
-80000
-70000
-60000
-50000
-40000
-30000
-20000
-10000
0
10000
2012-13 2013-14 2014-15 2015-16 2016-17
Share Capital
own Funds
Chapter 9
Own Funds
31AnnuAl report 2016-17
Annexure-II
Turnover during the last 5 years
(Value in ` Lakh)
Particulars 2012-13 2013-14 2014-15 2015-16 2016-17
(A) Internal Trade:
1. Outright 72846.49 39561.88 5954.80 17923.10 24078.83
2. Agriculture Inputs 47.38 11.74 --- --- --
3. Industrial Units 4569.32 1300.08 886.51 2672.72 3496.74
4. P.S.S/ PSF /Sales in GOI account
29158.44 108212.62 244741.84 33822.45 22901.14
Total: 106621.63 149086.32 251583.15 54418.27 50476.71
(B) Foreign Trade:
1. Outright Export 1501.54 2799.75 54.66 ---- ---
Total: 1501.54 2799.75 54.66 ---- ----
Total Turnover (A+B) 108123.17 151886.07 251637.81 54418.27 50476.71
0
50000
100000
150000
200000
250000
300000
2012-13 2013-14 2014-15 2015-16 2016-17
Internal Trade:
Foreign Trade:
Total Turnover
32 AnnuAl report 2016-17
Annexure-III
Internal Trade during the last 5 years
(Value in ` Lakh)
Commodity 2012-13 2013-14 2014-15 2015-16 2016-17
Outright:*
Foodgrains 53797.69 19236.55 2086.23 15028.91 15392.07
Pulses 4064.64 29327.10 106454.34 27479.36 20528.76
Oilseeds & Oils 17718.40 39499.40 131294.20 5933.52 2631.31
Spices 415.18 562.27 542.33 499.40 372.29
Horticulture 390.10 508.26 616.60 637.44 1014.97
Cotton 15027.25 51745.60 7211.01 ---- ---
Jute Goods 1024.65 35.83 22.53 110.45 7.39
Poultry 391.47 274.01 205.74 205.11 225.53
Fertilizers 3212.56 4157.77 1367.80 122.63 127.98
Seed 4313.44 948.72 817.82 ---- 3237.28
Misc. Items (Rubber, Sugar, Tea, Salt etc.)
1649.81 1478.99 895.86 1728.73 6807.65
Agricultural Inputs 47.38 11.74 ------ ----- ----
Industrial Units 4569.32 1300.08 68.69 2672.72 131.48
Total Internal Trade 106621.89 149086.32 251583.15 54418.27 50476.71
*Including PSS/PSF Sale.
0
50000
100000
150000
200000
250000
300000
2012-13 2013-14 2014-15 2015-16 2016-17
Series1Total Internal Trade
33AnnuAl report 2016-17
Annexure – IV
Commodity-wise Foreign Trade of NAFED during the last 5 years
(Qty. in MTs/Value in ` Lakh)
Commodity
2012-13 2013-14 2014-15 2015-16 2016-17
Qty. Value Qty. Value Qty. Value Qty. Value Qty. Value
Outright Exports
1. Horticulture
Onion 6930.45 1501.54 7099 2799.75 231.02 54.66 Nil Nil Nil Nil
TOTAL 6930.45 1501.54 7099 2799.75 231.02 54.66 Nil Nil Nil Nil
2. Foodgrains & Pulses
Maize Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
TOTAL Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Total Outright Exports 6930.45 1501.54 7099 2799.75 231.02 54.66 Nil Nil Nil Nil
Total Foreign Trade 6930.45 1501.54 7099 2799.75 231.02 54.66 Nil Nil Nil Nil
0
1000
2000
3000
4000
5000
6000
7000
8000
Qty. Value Qty. Value Qty. Value Qty. Value Qty. Value
2012-13 2013-14 2014-15 2015-16 2016-17
Series1
0
1000
2000
3000
4000
5000
6000
7000
8000
Qty. Value Qty. Value Qty. Value Qty. Value Qty. Value
2012-13 2013-14 2014-15 2015-16 2016-17
Series1Total Foreign Trade
34 AnnuAl report 2016-17
Annexure – V
Procurement of Oilseeds, Pulses & Cotton under PSS by NAFED
Commodity Year Support Price
Qty. procured in MTs
Value ` in Lakh
Major State of procurement
1. Soyabean 2016-17 2775 164.09 43.89 Maharashtra
2. Groundnut 2013-14
2014-15
2016-17
4000
4000
4120+100
338567
8817.68
210732.02
145732.02
5105.97
86821.59
Maharashtra, Gujarat, Rajasthan, AP, Karnataka, UP and Odisha
Andhra Pradesh, Odisha
Gujarat
3. Mustard seed 2014-15 3050 1714.821 558.56 Rajasthan
4. Sunflower seed 2012-13
2013-14
2014-15
2015-16
2016-17
3700
3700
3750
3750
3850+100
1499
4383
4153.213
4237.684
4949.268
554.67
1634.22
1655.28
1589.13
1880.72
Karnataka
Karnataka
Odisha and Haryana
Odisha and Haryana
Odisha and Hayana
5. Copra 2012-13
2013-14
2016-17
5100 (Milling)
5350 (Milling)
5250 (Milling)
5500 (Ball)
6240 (Ball)
5950(Milling)
64962
9275
4117
29490
1836.86
4487.08
35322.94
5199.35
2463.41
17284.74
1146.20
2669.81
Tamilnadu,Kerala,AP,L.Dweep
Karnataka, Kerala
TN, Kerala, AP, L.Dweep, A&N
Karnataka
Tamilnadu and Karnataka
Tamilnadu and Andhra Pradesh
6. Gram 2013-14
2014-15
3000
3100
34306
279611.125
10736.57
94123.66
Mah, AP, Karnataka
Mah, Guj, MP, UP, Raj, Karnataka
7. Urad 2012-13
2013-14
2014-15
3300
4300
4300
4300
1.57
77050.806
7453.262
6.70
0.63
34543.75
3611.45
6.56
Rajasthan
Maharahstra, AP, UP, MP, Guj., W.B,Raj, Karnataka, Jhrkhand
Jharkhand, WB, AP, Maharashtra, UP
Maharashtra
8. Arhar 2012-13
2013-14
2014-15
3850
4300
4300
16004.835
42693
1079.648
6328.15
18755.12
1069.87
Maharahstra, AP,MP
Maharashtra, AP
Maharashtra, AP
9. Moong 2016-17 4800+425 8267.58 3968.43 Maharashtra & Karnataka
10. Cotton 2012-13 3600/3900 181510.347 70776.83 AP, Maharahstra
35AnnuAl report 2016-17
Annexure-VI
Procurement of Agricultural Commodities byNAFED under Market Intervention Scheme(MIS)
Commodity Year Support Priceper quintal
Quantity procured in MTs
Value in ` Lakh Major States ofprocurement
1. Potato 1997-98
2003-04
125-130/350
190
4697
733
159.27
21.48
UP, Karnataka
UP2. Onion 1996-97 300 60 1.98 Karnataka3. Eggs (Qty in Lakh No.)
1992-93
1993-94
1994-95
1995-96
1996-97
1999-2000
2000-01
2001-02
65/100
75/100
75/100
82/100
110/100
100/100
90/100
100/100
26.99
91.02
28.21
34.82
141.43
85.89
34.93
31.75
17.19
61.63
37.61
32.96
137.51
87.00
31.20
32.70
AP
AP
AP
AP, Punjab
AP, Punjab
AP
AP
AP4. Kinoo/Malta 1992-93
1993-94
325A
350A
1703
3133
46.88
49.49
Punjab, Haryana
HP, UP, Haryana5. Black Pepper 1993-94 3300 1491 495.25 Kerala6. Chillies 1993-94
1996-97
1997-98
1500
2200
2250
5000
126
8123
806.64
29.48
190.01
AP
AP
AP7.Corrianderseed 1998-99
2004-05
1250
1450
378
80
45.88
12.48
Rajasthan
Rajasthan
36 AnnuAl report 2016-17
Annexure-VIII
Commodity-wise Profit/Loss Statement for the year 2016-17
(Value in ` Lakh)
Sr. No. Commodity/GroupGross
Profit/Loss
1. Food grains 167.42
2. Pulses 50.40
3. Oil & Oilseeds ---
4. Horticulture 40.49
5. Spices 16.71
6. Tribal Produce (Jute) 29.43
7 Misc. & minor items including Poultry, Rubber, Tea, Salt, Sugar, Seeds, Fertilizer etc.
338.45
8. Industrial Units 509.48
9 Service Charges /PSS/PSF/MIS/etc. 13633.33
10. Others Income/Expenses etc. 131.62
Gross Profit/Loss 14917.33
167.42 50.40 40.49 16.71 29.43 338.45 509.48
13633.33
131.62
Gross Profit/Loss 2016-17
37AnnuAl report 2016-17
Annual Accounts
Annual Accounts
CHAPTER NO.
CONTENTS PAGE NO.
10 (i) Auditors' Report 38-41
10 (ii) Compliance on Auditors' Observations 42-50
10 (iii) Balance Sheet 51
10 (iv) Statement of Profit and Loss 52-53
10 (v) Schedules 54-70
10 (vi) Significant Accounting Policies 71-87
Chapter 10
38 AnnuAl report 2016-17
P.K.CHOPRA & CO CHARTERED ACCOUNTANTS
N-84 PRATAP BUILDING, ABOVE HDFC BANKCONNAUGHT PLACE, NEW DELHI -110001
GUPTA DUTT & ASSOCIATES CHARTERED ACCOUNTANTS
219 , ANARKALI BAZAR JHANDEWALAN EXTENSION
NEW DELHI-110055
SPMR & ASSOCIATES CHARTERED ACCOUNTANTS
C-113, LGF, DAYANAND COLONY , LAJPAT NAGAR - IV NEW DELHI-110024
Independent Auditors’ Report
Chapter 10 (i)
To
The Members
N A F E D
Report on the Financial Statements
1- We have audited the accompanying financial statements of National Agricultural Co-Operative
Marketing Federation of India Ltd. (hereinafter referred to as “FEDERATION”) as at March 31, 2017, which
comprises the Balance Sheet as at 31st March 2017, the Statement of Profit and Loss and Cash Flow Statement
for the year then ended and a summary of significant accounting policies and other explanatory information.
Incorporated in these financial statements are trading operations of commodities on behalf of Government of
India under Price Support Scheme Operations and Price Stabilization Fund audited by independent firms of
Chartered Accountants and primarily relied upon by us.
Management’s Responsibility for the Financial Statements
2- The Federation’s Management is responsible for the preparation of these financial statements that
give a true and fair view of the financial position, financial performance and cash flows of the Federation in
39AnnuAl report 2016-17
accordance with the Accounting Standards issued by Institute of Chartered Accountants of India as applicable to
the Federation and in accordance with the accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors’ Responsibility
3- Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of
India. Those Standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and 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 control relevant to the Federation’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Federation’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Basis for Qualified Opinion
4- On the following points, we are unable to ascertain and report the impact on the Balance Sheet and
Statement of Profit and Loss.
A. The financial statements of the Federation have been prepared on going concern basis
notwithstanding the fact that its net worth is completely eroded. The appropriateness of the said
basis is inter-alia dependent on the Federation’s ability to obtain financial assistance from the
Government for meeting its obligations, realization of debts and improving financial performance.
B. The Debt Recovery Tribunal has passed orders dated 15.07.2015 & 28.07.2015 against the Federation
and have accepted the banks claims and issued demand notice for ̀ 1373.02 crore in favour of banks.
This has a bearing on the going concern of the Federation. The Federation has filed writ petition
before Hon’ble High Court of Delhi against impugned order passed by Debt Recovery Tribunal and
Debt Recovery Appellate Tribunal.
40 AnnuAl report 2016-17
C. We refer to Para 4.A above of the report and note No 20 of Notes & Explanatory Statements forming
part of Financial Statements Schedule 15 regarding recognition of Deferred Tax Asset amounting
to ` 18,08,22,458.83. In the absence of substantial evidence, we are unable to comment on virtual
certainty of realization of Deferred Tax Asset in future. In our opinion to that extent the loss for the
year in the Statement of Profit and Loss and accumulated losses in the Balance Sheet are understated.
D. Provisions have not been held in the following cases:-
i. Out of total Tie-up receivables amounting to ` 1066.73 Crore (P.Y. ` 1076.37 Crore), the federation has
made a provision of only ` 2.50 Crore against outstanding of ` 1066.73 Crore (Refer to note No.6(a) &
(b) of Notes & Explanatory Statements forming part of Financial Statements Schedule 15).
ii. PSS/MIS operation-wise claim details submitted to Ministry of Agriculture & Farmers Welfare and
Ministry of Consumer Affairs, Government of India. Claims wise details of amount received/ paid or
adjusted are not available (Refer note no 8 of Notes & Explanatory Statements forming part of Financial
Statements Schedule 15)
iii. Arbitration award in favor of M/s Alimenta SA, Geneva was for US$ 45,26,000, Interest thereon
US$ 49850301 (as calculated by Nafed) and Cost & Fee UK Pounds 12,394.55. The amount works out
to ` 352.75 Crore after adding award amount, interest thereon and cost & fee after converting them
at the applicable exchange rate. (Refer to note No “1.a” Notes & Explanatory Statements forming part
of Financial Statements Schedule 15) and M/s Louis Furth, New York for ` 0.08 Crore (US $12,860.31)
E. Balances in respect of Debtors, Creditors and Loans & Advances are subject to confirmation and
reconciliation. Consequential effect of the same on Financial Statements could not be ascertained. (Refer
to note No. “9” Notes & Explanatory Statements forming part of Financial Statements Schedule 15 )
F. Substantive evidence of physical verification of security was not available in respect of advances against tie
up business. Hence, authenticity of the same could not be verified.
G. The loan amounting to ` 310.82 Crore sanctioned by the Central Bank of India in anticipation of Govt.
Guarantee and shown as Secured Loan by the Federation is not backed by any guarantee (Refer point no
13 of Notes & Explanatory Statements forming part of Financial Statements Schedule 15)
We are of the opinion that there may be many unascertained amount requiring disclosure in addition to the
ascertained amount that will have an effect on the Loss, Asset and Liabilities and furnishing the aggregate effect
of only the ascertained amount will not be appropriate, hence we are not furnishing the aggregate effect of the
ascertained amount on the Loss, Asset and Liabilities.
41AnnuAl report 2016-17
Qualified Opinion:
5. Except for the effects of the matters described in the basis for qualified opinion in Para 4 above, Including the
matters whose effect on the loss for the year and on assets and liabilities as at March 31st, 2017 is unascertainable,
in our opinion and to the best of our information and according to the explanations given to us, the financial
statements give the information required under the Act in the manner so required and, give a true and fair view
in conformity with the accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the Federation as at March 31, 2017;
(b) In the case of the Statement of Profit and Loss, of the loss for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
6- We further report that:
(a) We have obtained all the information and explanations, which to the best of our Knowledge and
belief were necessary for the purpose of our audit;
(b) In our opinion, proper books of account as specified in the Multi State Cooperative Societies Act 2002
have been kept by the Federation so far as appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this
Report are in agreement with the books of account.
(d) Except for the matter described in the Basis of Qualified Opinion Paragraph, the Balance Sheet, Profit &
Loss Statement and Cash Flow Statement comply with the accounting standards.
42 AnnuAl report 2016-17
AUDIT OBSERVATION COMPLIANCE
Report on the Financial Statements
1. We have audited the accompanying financial
statements of National Agricultural Co-Operative
Marketing Federation of India Ltd. (hereinafter
referred to as “FEDERATION”) as at March 31, 2017,
which comprises the Balance Sheet as at 31st
March 2017, the Statement of Profit and Loss and
Cash Flow Statement for the year then ended and
a summary of significant accounting policies and
other explanatory information. Incorporated in
these financial statements are trading operations
of commodities on behalf of Government of India
under Price Support Scheme Operations and Price
Stabilization Fund audited by independent firms
of Chartered Accountants and primarily relied
upon by us.
Management’s Responsibility for the Financial Statements
2. The Federation’s Management is responsible for the
preparation of these financial statements that give
a true and fair view of the financial position, financial
performance and cash flows of the Federation in
accordance with the Accounting Standards issued
by Institute of Chartered Accountants of India as
applicable to the Federation and in accordance
with the accounting principles generally
accepted in India. This responsibility includes
the design, implementation and maintenance of
internal control relevant to the preparation and
presentation of the financial statements that give
a true and fair view and are free from material
misstatement, whether due to fraud or error.
No Comments
No Comments
PARA-WISE COMPLIANCE ON AUDITORS’ OBSERVATIONS FOR THE YEAR 2016-2017
Chapter 10 (ii)
43AnnuAl report 2016-17
Auditors’ Responsibility
3 Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and 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 control relevant to the Federation’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Federation’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Basis for Qualified Opinion
4. On the following points, we are unable to ascertain and report the impact on the Balance Sheet and Statement of Profit and Loss.
A. The financial statements of the Federation have been prepared on going concern basis notwithstanding the fact that its net worth is completely eroded. The appropriateness of the said basis is inter-alia dependent on the Federation’s ability to obtain financial assistance from the Government for meeting its obligations, realization of debts and improving financial performance.
No Comments
No Comments
44 AnnuAl report 2016-17
B. The The Debt Recovery Tribunal has passed orders dated 15.07.2015 & 28.07.2015 against the Federation and have accepted the banks claims and issued demand notice for Rs 1373.02 crore in favour of banks. This has a bearing on the going concern of the Federation. The Federation has filed writ petition before Hon’ble High Court of Delhi against impugned order passed by Debt Recovery Tribunal and Debt Recovery Appellate Tribunal.
C. We refer to Para 4.A above of the report and note No 20 of Notes & Explanatory Statements forming part of Financial Statements Schedule 15 regarding recognition of Deferred Tax Asset amounting to Rs 18,08,22,458.83. In the absence of substantial evidence, we are unable to comment on virtual certainty of realization of Deferred Tax Asset in future. In our opinion to that extent the loss for the year in the Statement of Profit and Loss and accumulated losses in the Balance Sheet are understated.
D. Provisions have not been held in the following cases:-
i. Out of total Tie-up receivables amounting to Rs 1066.73 Crore (P.Y.Rs 1076.37 Crore), the federation has made a provision of only Rs. 2.50 Crore against outstanding of Rs 1066.73 Crore (Refer to note No.6 (a) & (b) of Notes & Explanatory Statements forming part of Financial Statements Schedule 15).
No Comments
The management is of the view that the operation of the Federation will generate sufficient profit in near future and there is virtual certainty that Deferred Tax Asset can be realized in near future.
NAFED has not made provision in respect of follow-ing items due to the reasons mentioned against each:
During the year 2003-04 to 2005-06, Nafed undertook tie-up/back to back business with private parties both in agricultural and non-agricultural/non-traditional items. Under this business model funds were mostly made available to the parties for procurement and subsequent hypothecation of stocks in favour of Nafed. In some cases, a few tie-up parties diverted the funds for the purposes other than those specified in the MOU/agreement. In other cases, some Tie-up parties reportedly made losses on account of market conditions and stopped making payment of Nafed’s dues. In order to recover the huge outstanding dues from the tie-up defaulters, Nafed initiated civil and criminal proceedings against them by filing claim petitions before the Arbitrators, Civil Courts and criminal cases under section 138 of NIA for dishonoring of Cheques issued by the parties in favour of Nafed. Nafed has filed several cases under section 138 of Negotiable Instruments Act amounting to Rs.686.44 Crore. Nafed also filed criminal complaints against some of the parties with CBI/EOW. The concerted
45AnnuAl report 2016-17
ii. PSS/MIS operation-wise claim details submitted to Ministry of Agriculture & Farmers Welfare and Ministry of Consumer Affairs, Government of India. Claims wise details of amount received/ paid or adjusted are not available (Refer note no 8 of Notes & Explanatory Statements forming part of Financial Statements Schedule 15)
iii. Arbitration award in favor of M/s Alimenta SA, Geneva was for US$ 45,26,000, Interest thereon US$ 49850301 ( as calculated by Nafed) and Cost & Fee UK Pounds 12,394.55. The amount works out to Rs 352.75 Crore after adding award amount, interest thereon and cost & fee after converting them at the applicable exchange rate. (Refer to note No “1.a” Notes & Explanatory Statements forming part of Financial Statements Schedule 15) and M/s Louis Furth, New York for Rs 0.08 Crore (US $12,860.31)
efforts put in by Nafed to recover the outstanding amount have started yielding results. Nafed has already succeeded in getting Arbitration Awards in its favour against 18 parties out of 25 parties. The total value of the decreed amount of these 18 Awards is around Rs.888.27 Crore. Nafed has already filed Execution Petitions in 16 cases. The Arbitration proceedings in remaining 7 cases are currently in progress. In cases where orders for decree / auction of property belonging to the parties have been passed, necessary action to auction the property as per direction of court is being taken. CBI/EOW has also filed charge sheets before the appropriate courts in all the complaints filed by NAFED. Since litigation is a long drawn and time consuming process, in order to expedite recoveries from interested tie-up defaulters, the Board of Directors in its meeting held on 9.7.2010 has approved the comprehensive one time settlement policy based on RBI guidelines. A few parties have agreed to settle the dues as per the OTS policy, so far OTS with three parties has been settled during the year 2016-17. In view of the above stated actions, it is expected that some recoveries shall be effected in due course of time.
Nafed submits operation-wise claims to Government of India for the PSS / MIS operations handled on their behalf. Government of India also settles the claims operation-wise. However, they release funds on account payment to Nafed against the losses incurred on handling of various PSS operations, as a result of which, the operation-wise details of receipt of funds could not be provided. However, steps are being taken for early reimbursement of claims from Government and to prepare such details.
During the year 1979-80, NAFED was appointed as canalizing agency for export of 50,000 MTs of HPS Groundnut, accordingly, Nafed entered into two contracts with Alimenta for supply of total quantity of 9000 MTs of HPS Groundnut. The first contract was for 5000 MTs and the second contract was for 4000 MTs. NAFED could only ship 1900 MTs and remaining quantity of 3100 MTs could not be shipped against the first contract, however, entire quantity of 4000 MTs against the second contract could not be shipped as the party initially did not declare the vessel and subse quently the export of HPS Groundnut
46 AnnuAl report 2016-17
pods was disallowed by the Govt. of India in the public interest as the prices of HPS Groundnut both in domestic and international markets increased quite substantially. Alimenta was accordingly informed. Consequently, while being aggrieved, Alimenta invoked the arbitration clause against the first contract and initiated arbitration proceedings in FOSFA London. A, ex-parte foreign arbitration award was pronounced against NAFED. Though, NAFED challenged the award in the Appellate Court, the Appellate Court upheld the award with slight modification. The Appellate Court awarded an amount of US$ 45,26,000 plus interest @ 11.25% w.e.f.13.02.81 till payment and other legal costs.
Alimenta filed a suit vide CS(OS) no.1885 of 1993 before Hon’ble Delhi High Court under the provisions of the Foreign Awards (Recognition & Enforcement) Act, 1961 for the enforcement of arbitration award passed by FOSFA, in which Nafed filed objection. However, the Ld. Single judge of Delhi High Court dismissed said objections filed by Nafed vide order dated 28.01.2000 and passed a decree in favour of Alimenta in the said suit while confirming the Arbitration Award passed by FOSFA whereby directing Nafed to pay US$ 45,26,000 plus interest @ 11.25% w.e.f. 13.02.81to 14.09.90 and thereafter interest @ 18% from 15.09.90 till date of payment. Consequently, Nafed challenged the impugned order of Ld. Single Judge by filing an appeal before the Division Bench of Hon’ble Delhi High Court. However, on the question of maintainability of the appeal, there was a difference of opinion amongst two members of the Division Bench. Therefore, the matter was referred to the three Judge Bench of Hon’ble Delhi High Court. The Third Judge of Hon’ble Delhi High Court vide order dated 06.09.2010 held that LPA was not maintainable. Thereafter, Nafed filed two SLPs before Hon’ble Supreme Court of India, one against the order passed by the Division Bench and another against the order of Ld. Single Judge who had dismissed the objection filed by Nafed against the award.
Both the appeals have been admitted by the Hon’ble Supreme Court and are on board for regular hearing. However, no interim relief was granted by the Supreme Court in view of the fact
47AnnuAl report 2016-17
that Nafed failed to deposit the bank guarantee for an amount of Rs.67.50 Crore in terms of its order dated 07.04.11. As such, Alimenta was allowed to enforce the decree dated 28.01.2000 passed by the Single Judge of Hon’ble High Court of Delhi. However, NAFED could partially comply with the orders dated 07.04.11 as NAFED furnished Bank guarantee for Rs.22.50 Crore against the total amount of Rs.90 Crore directed by the Apex court for any interim relief. Alimenta filed an execution before Hon’ble Delhi Court in terms of the judgment passed by the single judge. The amount of Rs.22.50 crore is still lying deposited with Hon’ble Delhi High Court for the reason that Alimenta failed to provide requisite counter bank guarantee against the said amount to get it released from Hon’ble High Court on the objection raised by the Nafed that Alimenta being a Foreign Party could not be entrusted to get released said amount without any counter guarantee. Since Alimenta has so far not furnished the counter bank guarantee for the said amount the High Court ordered that Rs.22.50 Crore would be kept in a fixed deposit receipt initially for a period of one year with UCO Bank, Delhi Court Branch, New Delhi vide its order dated 14.03.2012. On the hearing held on 28.05.2012 NAFED pointed out certain discrepancies in the decree and the Hon’ble Court directed the decree holder to rectify the same. The Decree holder accordingly moved an application before Hon’ble High Court of Delhi under Section 151 and 152 of CPC seeking rectification in the Decree dated 28.01.2000 passed in suit no 1885/1993 which came up for hearing on 30.11.2012. NAFED’s counsel argued that the rectification in the Decree could only be effected in the suit proceedings and therefore, the aforesaid application be transferred to the file of suit No 1885/1993 to which the counsel for the decree holder did not object. Accordingly, Alimenta moved an application for modification of decree and EA No.434 of 2011 under Order 21 Rule 41 of 54 read with Section 51 and Section 151 of CPC seeking to appoint Court Receiver. The modification was allowed and Court Receiver was appointed in August, 2014. In EA No.434/2011 before Hon’ble High Court of Delhi Alimenta prayed for injunction on the JD from alienating, transferring, creating a charge or third party interest in the movable and immovable properties and appointment of Receiver.
48 AnnuAl report 2016-17
The Execution Petition before Hon.ble Delhi High Court was lastly heard on 11.07.2017 and the Ld. Court directed to file an affidavit through a senior most officer of Nafed in terms of Order 21 Rule 41 of C.P.C. The next date of hearing in the matter is 24.08.2017.
With regard to SLP pending before Supreme Court of India, the opinion of Addl. Solicitor General of India was sought and after thorough examination of the documents/details on record, he has opined that Nafed has fairly strong grounds to challenge the award if it can present adequate evidence to answer the apprehensions expressed by the Tribunal on the validity of the defence taken by Nafed. It has also been opined that the SLP filed by NAFED on the aspect of maintainability of a Letters Patent Appeal against the Delhi High Court single bench Judgment may have a favorable result.
In view of the matter being sub-judice the amount has been taken as contingent liability. (Refer para 1 (a) of Schedule 15 Notes forming part of Accounts).
Nafed contracted to supply Black Pepper and Dry Ginger to various parties through their agents M/s Jantzeen and Deeke Inc., New York. The execution of contractual obligation/ shipment as alleged by the parties could not be fulfilled and the aggrieved parties went for arbitration followed by Appeal that was decided against NAFED around July 1985. The appeal does not qualify into a clear liability for NAFED. However, in accordance with the order passed in USA Court, M/s LOUIS FURTH, New York approached Delhi High Court to enforce the award passed by USA Court. Nafed as per directive of High Court deposited an amount of Rs 1,68,084.25 in the year 1987-88. In this connection, we also obtained the opinion from eminent Tax Advocate who opined that liability of NAFED has not been crystallized and is of contingent nature. As the matter is sub-judice, suitable provision if necessary, will be made on conclusion of this case by the court. This case has now been transferred to District Court for disposal.
In view of the matter being sub-judice the amount has been taken as contingent liability
49AnnuAl report 2016-17
E. Balances in respect of Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation. Consequential effect of the same on Financial Statements could not be ascertained. (Refer to note No. “9” Notes & Explanatory Statements forming part of Financial Statements Schedule 15 )
F. Substantive evidence of physical verification of security was not available in respect of advances against tie up business. Hence, authenticity of the same could not be verified.
G. The loan amounting to Rs 310.82 Crore sanctioned by the Central Bank of India in anticipation of Govt. Guarantee and shown as Secured Loan by the Federation is not backed by any guarantee (Refer point no 13 of Notes & Explanatory Statements forming part of Financial Statements Schedule 15)
We are of the opinion that there may be many unascertained amount requiring disclosure in addition to the ascertained amount that will have an effect on the Loss, Asset and Liabilities and furnishing the aggregate effect of only the ascertained amount will not be appropriate, hence we are not furnishing the aggregate effect of the ascertained amount on the Loss, Asset and Liabilities.
For confirmation of balances we have already issued letters to the concerned parties/societies. A few of them have responded. As regards reconciliation, in many cases the accounts have been reconciled with the federation/ primary societies and parties. Steps are being taken to reconcile the remaining accounts.
Collateral Securities available with the federation against the advances for tie up business are of the nature of Agriculture Land, Residential Buildings, Hotels, Mall, Car, Paintings and Shops etc. Barring a few, documents of collateral securities are in the possession of the federation at Head Office / branches. Moreover, in the majority of recovery suits, Courts have restrained the parties to create third party interests in the properties.
Short term loan of ` 310.82 Crore was due for repayment to Central Bank of India as on 31.03.2017. They had shown their inability to rollover the loan further. Department of Agriculture & Cooperation, Ministry of Agriculture vide their letter dated 28.01.2011 had conveyed in principle approval for Government Guarantee for borrowing long term loan of ` 1200 Crore. Against this, Central Bank had sanctioned term loan of ` 525 Crore and converted overdue STL of ` 314.89 Crore into term loan in anticipation of approval of guarantee by the Central Government. However, finally the financial restructuring package was not approved by the Government and hence Government Guarantee has not been executed. Accordingly, NAFED has engaged SBI Caps to work out a financial restructuring package incorporating sacrifice on the part of all stake holders and scaling down the support from Government. The revised proposal has been submitted to GOI for their consideration. The above loan will be settled after revised restructuring package is approved by the Government.
In the opinion of the management, there is no unascertained amount, which can be ascertained as on 31.03.2017.
50 AnnuAl report 2016-17
Qualified Opinion:
5. Except the effects of the matters described in the basis for qualified opinion in Para 4 above, Including the matters whose effect on the loss for the year and on assets and liabilities as at March 31st, 2017 is unascertainable, in our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required under the Act in the manner so required and, give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the Federation as at March 31, 2017;
(b) In the case of the Statement of Profit and Loss, of the loss for the year ended on that date; and
(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
6. We further report that:
(a) We have obtained all the information and explanations, which to the best of our Knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion, proper books of account as specified in the Multi State Cooperative Societies Act 2002 have been kept by the Federation so far as appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by this Report are in a greement with the books of account.
(d) Except for the matter described in the Basis of Qualified Opinion Paragraph, the Balance Sheet, Profit & Loss Statement and Cash Flow Statement comply with the accounting standards.
51AnnuAl report 2016-17
BALANCE SHEET AS AT 31ST MARCH, 2017
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
Chapter 10 (iii)
PARTICULARSSCHEDULE
NOAS AT 31-3-2017 AS AT 31-03-2016
` ` ` `
SOURCES OF FUNDS
Shareholder’s Funds
Share Capital 1 242,811,000 241,771,000
Share Application Money 802,800 830,690
Reserves & Surplus Fund 2 3,924,713,222 3,965,736,738
Profit / (Loss) Account 3 (10,909,340,390) (6,741,013,368) (10,501,866,209) (6,293,527,781)
Loan Funds
Secured Loans 4 38,506,924,096 26,102,261,446
31,765,910,728 19,808,733,665
APPLICATION OF FUNDS
Fixed Asset 5 3,005,745,892 3,057,888,139
Construction Work in Progress 6 - 23,002
Investment (Net of provisions ) 7 94,873,000 3,100,618,892 94,873,000 3,152,784,141
Net Current Assets
Current Asset, Loans & Advances 8 103,145,810,591 27,816,972,529
Less:
Current Liabilities & Provisions 9 77,103,573,914 26,042,236,677 13,603,255,706 14,213,716,823
Deferred Tax Asset (Net) 2,623,055,159 2,442,232,701
31,765,910,728 19,808,733,665
Signigicant Accounting Policies & Notes
15
52 AnnuAl report 2016-17
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2017
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
Chapter 10 (iv)
PARTICULARSSCHEDULE
NOYEAR ENDED 31-3-2017 YEAR ENDED 31-3-2016
` ` ` `
INCOME / SALESa) Export - - b) Domestic 5,047,670,768 5,441,827,507 c) Agricultural Machinery & Implements - 5,047,670,768 - 5,441,827,507
Reimbursement of Deficit (excluding interest & Bank Charges etc.) recoverablefrom Govt. of India on handling of :-
i) GN Pods Rabi 2006 - (143,604)ii) Sesamum Seed Kharif-2010 1,150 -
iii) Cotton 2012-13 - (3,975,954)iv) Toor K-2012 - (3,293,836)v) Urad K - 2012 1,150 (175,279)
vi) Milling Copra 2013 3,180 136,053vii) Ball Copra 2013 - 8,730
viii) GN Pods Kharif 2013 1,150 (85,284,338)ix) Sunflower Seed K-2013 - 89,226 x) Toor K-2013 (3,391,369) (45,845,369)
xi) Urad K-2013 1,150 331,472 xii) Gram R-2014 1,150 (303,713,031)
xiii) Mustard Seed Rabi 2014 1,150 15,085 xiv) GN Pods Rabi 2014 - (230,669)xv) Sunflower Seed Rabi 2014 (2,206,351) (3,190,957)
xvi) Sunflower Seed Rabi 2015 - 31,933,953 xvii) Sunflower Seed Rabi 2016 67,656,262 -
xviii) Ball Copra 2016 (2,300,161) - xix) Milling Copra 2016 (16,245,346) - xx) GN Pods Kharif- 2016 23,136,302 -
xxi) Moong Khaif -2016 2,504,885 - xxii) Soyabeen Kharif-2016 26,671 69,190,973 - (413,338,518)
Reimbursement of Deficit (excluding Bank Charges) recoverable from
SFAC on handling of:-i) Onion - 2015 - (4,113,770)
ii) Toor Kharif - 2015 88,272,282 7,253,579 iii) Toor Dal (Milled) 2015 - 32,872 iv) Urad Kharif 2015 27,664,603 778,720 v) Onion -2016 43,220,278 -
vi) Gram Rabi-2016 (421,105,684) - vii) Masoor Rabi-2016 19,907,972 -
viii) Moong Kharif-2016 52,718,523 - ix) Toor Kharif - 2016 19,447,247 - x) Urad Kharif 2016 24,346,678 (145,528,101) - 3,951,401
Depreciation on Revalued Amount Written Back 41,023,516 41,388,004 Other Income 10 1,787,451,135 349,433,942
ACCRETION/(DECRETION) IN STOCK IN TRADE Closing Stock 58,809,194,934 2,957,131,949 Less : Opening Stock 2,957,131,949 55,852,062,985 4,026,630,933 (1,069,498,984)
Total 62,651,871,276 4,353,763,352
53AnnuAl report 2016-17
PARTICULARS SCHEDULE YEAR ENDED 31-03-2017 YEAR ENDED 31-03-2016
NO RS. RS. RS. RS. RS. RS.
EXPENDITURE
Purchases 57,626,342,740 3,964,768,964
Sales Tax on transfer of Stock 881,382 56,414
Manufacturing and Trading 11 2,460,447,727 98,092,332
Selling and Distribution 12 993,987,027 53,348,609
Employees Remunaration and Benefits
13 239,581,984 228,213,421
Administrative Expenses 14 90,413,617 82,148,959
Interest Paid to Bank and Others 2,830,406,639 3,007,705,652
Less : Interest Reimbursable on
PSS/MIS Operations transferred
to Govt. of India account. 1,053,017,436 1,777,389,203 1,171,670,793 1,836,034,859
B ank Charges 226,257 350,054
Less : Bank charges on Govt Operation
29,203 197,054 63,189,240,734 215,675 134,379 6,262,797,937
Depreciation(Including Amortisation of
land) 54,747,222 57,523,508
Total 63,243,987,956 6,320,321,445
Operating Profit / (Loss) (592,116,680) (1,966,558,093)
Excess Provision Written back 1,759,649 6,149,885
Less : On account of Govt Operation
- 1,759,649 - 6,149,885
Prior Period adjustment(NET)
I) Income relating to previous year 2,346,944 3,756,947
ii) Expenses relating to previous year (286,553) 2,060,391 (1,164,659) 2,592,288
Profit / (Loss) Before Tax (588,296,640) (1,957,815,920)
Provision for Taxation
Deferred Tax (180,822,459) (477,148,003)
PROFIT / (LOSS) FOR THE YEAR (407,474,181) (1,480,667,917)
PARTICULARS SCHEDULE YEAR ENDED 31-03-2017 YEAR ENDED 31-03-2016
NO RS. RS. RS. RS. RS. RS.
EXPENDITURE
Purchases 57,626,342,740 3,964,768,964
Sales Tax on transfer of Stock 881,382 56,414
Manufacturing and Trading 11 2,460,447,727 98,092,332
Selling and Distribution 12 993,987,027 53,348,609
Employees Remunaration and Benefits
13 239,581,984 228,213,421
Administrative Expenses 14 90,413,617 82,148,959
Interest Paid to Bank and Others 2,830,406,639 3,007,705,652
Less : Interest Reimbursable on
PSS/MIS Operations transferred
to Govt. of India account. 1,053,017,436 1,777,389,203 1,171,670,793 1,836,034,859
B ank Charges 226,257 350,054
Less : Bank charges on Govt Operation
29,203 197,054 63,189,240,734 215,675 134,379 6,262,797,937
Depreciation(Including Amortisation of
land) 54,747,222 57,523,508
Total 63,243,987,956 6,320,321,445
Operating Profit / (Loss) (592,116,680) (1,966,558,093)
Excess Provision Written back 1,759,649 6,149,885
Less : On account of Govt Operation
- 1,759,649 - 6,149,885
Prior Period adjustment(NET)
I) Income relating to previous year 2,346,944 3,756,947
ii) Expenses relating to previous year (286,553) 2,060,391 (1,164,659) 2,592,288
Profit / (Loss) Before Tax (588,296,640) (1,957,815,920)
Provision for Taxation
Deferred Tax (180,822,459) (477,148,003)
PROFIT / (LOSS) FOR THE YEAR (407,474,181) (1,480,667,917)
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2017
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
Chapter 10 (iv)
54 AnnuAl report 2016-17
SHARE CAPITAL
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
Chapter 10 (v)
PARTICULARS AS AT 31-03-2017`
AS AT 31-03-2016`
AUTHORISED CAPITAL :
30000 Shares (Previous Year 30000) of ` 25000/- each 750,000,000 750,000,000
34 Shares (Previous Year 34) of ` 5000 each 170,000 170,000
100000 Shares of (previous year 100000) of ` 2500/- each 250,000,000 250,000,000
1721 Shares (previous year 1721) of ` 1000/- each 1,721,000 1,721,000
1,001,891,000 1,001,891,000
ISSUED, SUBSCRIBED AND PAID UP CAPITAL :
5869 Shares (previous year 5860) of `25000/- each 146,725,000 146,500,000
34 Shares of (Previous year 34) of ` 5000/- each 170,000 170,000
37678 Shares(previous year 37352) of ` 2500 each 94,195,000 93,380,000
1721 Shares (previous year 1721) of ` 1000/- each 1,721,000 1,721,000
242,811,000 241,771,000
SCHEDULE - 1
55AnnuAl report 2016-17
RESERVES AND SURPLUS FUNDS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
PARTICULARSAS AT
31-03-2016
ALLOCATION / ADDITION
DURING THE YEAR
TRANSFER / ADJUSTMENT DURING THE
YEAR
AS AT 31-03-2017
` ` ` `
General Reserves 394,328,786 - - 394,328,786
Building Fund 110,849,215 - - 110,849,215
Education Fund 5,310,581 - - 5,310,581
Contingent Fund 579,455,559 - - 579,455,559
Dividend Equilisation Fund 15,339,402 - - 15,339,402
Price Fluctuation Fund (Ordinary) 165,391,930 - - 165,391,930
Price Fluctuation Fund (Special) 1,846,737 - - 1,846,737
Bonus Fund 221,186 - - 221,186
Primary Society Development Fund 21,350,000 - - 21,350,000
Development Reserve Fund 225,000 - - 225,000
Revaluation Reserve 2,617,861,551 - 41,023,516 2,576,838,035
Investment Allowance Reserve 260,817 - - 260,817
Farmers Welfare Fund 2,900,000 - - 2,900,000
Poultry Risk Fund 300,000 - - 300,000
Common Good Fund 1,112,564 - - 1,112,564
Share Capital Redemtion Fund 2,070,100 - - 2,070,100
Export Development Reserve 2,953,310 - - 2,953,310
Human Resourses Development Fund 8,260,000 - - 8,260,000
Patronage Rebate Reserve 15,500,000 - - 15,500,000
State Coop. Mktg. Fedn. Rehabilitation Fund 20,000,000 - - 20,000,000
Employees Welfare fund 200,000 - - 200,000
3,965,736,738 - 41,023,516 3,924,713,222
SCHEDULE - 2
56 AnnuAl report 2016-17
PROFIT / (LOSS) ACCOUNT
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
PARTICULARSYEAR ENDED 31-03-2017
`
YEAR ENDED 31-03-2016
`
Profit / (Loss) brought forward (10,501,866,209) (9,021,198,292)
Profit / (Loss) for the Year (407,474,181) (1,480,667,917)
(10,909,340,390) (10,501,866,209)
SCHEDULE -3
57AnnuAl report 2016-17
SECURED LOANS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
PARTICULARSAS AT 31-03-2017 AS AT 31-03-2016
` ` ` `
A. TERM LOAN FROM NATIONAL COOPERATIVE
DEVELOPMENT CORPORATION FOR - 1,071,600
PROJECTS & WORKING CAPITAL
(Secured by way of mortgage of land & building and plant & machinery at Vashi )
B. CASH CREDIT
i) State Bank of India 13,662,904,898 9,096,304,939
(Secured against hypothecation of PSS Stocks and Govt.Guarantee)
ii) State Bank of India 4,996,524,398 -
(Secured against hypothecation of PSF Stocks and letter of Comfort issued by Min of Agriculture & Farmers Welfare)
iii) Federal Bank 1,946,619,709 1,946,619,709
iv) Punjab National Bank 254,437,304 254,437,304
v) Central Bank of India 394,770,927 21,255,257,236 394,770,927 11,692,132,879
C. SHORT TERM LOAN FROM BANKS
i) National Cooperative Development Corporation (Secured against hypothecation of PSS Stocks and and letter of Comfort issued by Min of Agriculture & Farmers Welfare)
2,842,609,893 -
SCHEDULE - 4
PAGE 1 OF 2
(Secured against hypothecation of stocks)}
58 AnnuAl report 2016-17
SECURED LOANS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 4
PAGE 2 OF 2
PARTICULARSAS AT 31-03-2017 AS AT 31-03-2016
` ` ` `
ii) Oriental Bank of Commerce 1,853,016,066 1,853,016,066
iii) Central Bank of India 263,623,989 263,623,989
iv) South lndian Bank 1,599,811,824 1,599,811,824
v) Bank of Maharashtra 2,834,637,215 2,834,637,215
vi) State Bank of Bikaner & Jaipur 1,589,586,071 1,589,586,071
vii) Syndicate Bank 1,004,365,354 1,004,365,354
viii) Punjab National Bank 2,155,794,487 14,143,444,899 2,155,794,487 11,300,835,006
(Secured against hypothecation of Stocks)
D. LONG TERM LOAN FROM BANKS
(i) Central Bank of India 3,108,221,961 3,108,221,961
(Secured against pending execution of Guarantee by Central Government )
38,506,924,096 26,102,261,446
59AnnuAl report 2016-17
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23,
624,
992
00
03,
624,
992
00
STRU
CTU
RE
TO
TAL
(a T
O e
)73
1,93
3,87
513
5,82
03,
750,
000
728,
319,
695
347,
390,
844
00
31,5
65,8
5637
8,95
6,70
034
9,36
2,99
538
4,54
3,03
1
3FU
RNIT
URE
& F
IXTU
RES
23,6
98,5
1998
,372
769,
574
23,0
27,3
1718
,363
,562
-648
,903
052
7,57
818
,242
,237
4,78
5,08
05,
334,
957
4PL
AN
T &
MA
CH
INER
Y56
,669
,352
00
56,6
69,3
5243
,565
,531
00
1,94
7,26
345
,512
,794
11,1
56,5
5813
,103
,821
5 E
LEC
TRIC
AL
INST
ALL
ATIO
N28
,082
,336
1,99
4,55
12,
773,
783
27,3
03,1
0422
,835
,496
-1,0
35,1
640
829,
904
22,6
30,2
364,
672,
868
5,24
1,44
0
6O
THER
EQ
UIP
MEN
TS37
,369
,551
5,94
0,06
730
5,08
143
,004
,537
36,2
83,5
52-2
96,6
590
1,93
3,95
437
,920
,847
5,08
3,69
01,
091,
399
7O
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008,
286
2,65
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,993
964,
951
913,
206
-41,
076
013
,779
885,
909
79,0
4295
,080
8V
EHIC
LES
4,68
2,89
356
,135
04,
739,
028
3,07
6,02
30
024
9,44
93,
325,
472
1,41
3,55
61,
606,
870
0
TO
TAL
(4 T
O 8
)12
7,81
2,41
87,
993,
411
3,12
4,85
713
2,68
0,97
210
6,67
3,80
8-1
,372
,899
04,
974,
349
110,
275,
258
22,4
05,7
1421
,138
,610
TOTA
L TH
IS Y
EAR
3,71
7,80
2,46
78,
227,
604
7,64
4,43
13,
718,
385,
640
659,
914,
328
-2,0
21,8
020
54,7
47,2
2271
2,63
9,74
83,
005,
745,
892
3,05
7,88
8,13
9
TOTA
L LA
ST Y
EAR
3,71
9,34
4,53
497
0,83
12,
512,
898
3,71
7,80
2,46
760
4,67
9,58
3-2
,288
,763
057
,523
,508
659,
914,
328
3,05
7,88
8,13
93,
114,
664,
951
60 AnnuAl report 2016-17
CONSTRUCTION WORK IN PROGRESS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 6
PARTICULARSAS AT 31-03-2017
`
AS AT 31-03-2016
`.
Opening Balance 23,002 23,002
Addition During the year - -
23,002 23,002
Adjustment during the year 23,002 -
- 23,002
61AnnuAl report 2016-17
INVESTMENTS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 7
PAGE 1 OF 2
PARTICULARSAS AT 31-03-2017 AS AT 31-03-2016` ` ` `
INVESTMENT(UNQUOTED) AT COST
A. IN COOPERATIVE SOCIETIES100 fully paid up shares of ` 50/-
each of Delhi State Cooperative Bank
Limited, New Delhi. 5,000 5,000
199 fully paid up shares of `100000/- each of
Indian Farmers Fertilizers coop. Ltd, New Delhi 19,900,000 19,900,000
30 fully paid up shares of `1000/- each of
Indian Farmers Fertilizers coop. Ltd, New Delhi 30,000 30,000
07 Fully paid up shares of ` 10000/-
each of Indian Farmers Fertilizers
Cooperative Limited, New Delhi. 70,000 70,000
1000 fully paid up shares of ` 2000/- each
of National Cooperative Consumers
Federation of India Limited, New Delhi. 2,000,000 2,000,000
25 fully paid up shares of ` 20000/- each
of Sriganaganagar Cotton Seed Processing
Sahakari Samiti Ltd., Sriganganagar 500,000 500,000
1 fully paid up share of ` 1000/- of
Maharashtra State Cooperative Bank Ltd.,
Mumbai 1,000 1,000
1 fully paid up share of ` 1000/- of
Rajasthan Rajya Sahakari Bhawan
Prabhand sahakari sangh Ltd, Jaipur 1,000 1,000
276 fully paid up shares of ` 5000/- each
of Indian Tourism Cooperative Ltd.,
(COOPTOUR), New Delhi. 1,380,000 1,380,000
Less : Provision for diminution in the value 1,380,000 - 1,380,000 -
50 fully paid up shares of `10,000/- each of National Cooperative Bank of India Ltd.,
500,000 500,000
62 AnnuAl report 2016-17
INVESTMENTS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 7
PAGE 2 OF 2
PARTICULARS AS AT 31-03-2017 AS AT 31-03-2016` ` ` `
1 fully paid up share of ` 25,000/- ofTribal Cooperative Marketing DevelopmentFederation of India Ltd., New Delhi. 25,000 25,000
05 fully paid up shares of `100000/-each of TRIFED, New Delhi 500,000 500,000
305 fully paid up shares of `100000/-each of KRIBHCO, Noida 30,500,000 30,500,000
04 fully paid up shares of `10,000/- each of KRIBHCO, Noida 40,000 40,000
02 fully paid up shares of `25,000/- each of KRIBHCO, Noida 50,000 50,000
9000 fully paid up shares of ` 2000/- each ofNational Coop Consumers Fed of India Ltd., New Delhi
18,000,000 -
TOTAL : (A) 72,122,000 54,122,000 B. IN COMPANIES
1000000 shares of ` 10/- each ofKonark Jute Ltd., Bhubneshwer 10,000,000 10,000,000
100 Shares of `10/- each of National Spot 1,000 1,000 Exchange Ltd
100000 fully paid up shares of ` 10/-each of Ladak Food Ltd., New Delhi. 1,000,000 1,000,000 Less : Provision for diminution in the value 1,000,000 - 1,000,000 -
500000 fully paid up shares of `10/- eachof National Multi Commodity exchange of India Ltd., Ahmedabad. 5,000,000 5,000,000
250000 fully paid up shares of `10/- each at aPremium of ` 5/- against Right Issue of National Multi Commodity exchange of India Ltd, Ahmedabad 3,750,000 3,750,000
200000 fully paid up shares of `10/- each ofNSS Satpura Agro Development Company Ltd., New Delhi
2,000,000 2,000,000
20,751,000 20,751,000 C. SHARE APPLICATION MONEYInvestment in National Cooperative ConsumersFederation of India Limited, New Delhi - 18,000,000 D. OTHERSmall Farmers Agri Business Consortium, New Delhi 2,000,000 2,000,000
TOTAL (A+B+C+D) 94,873,000 94,873,000
63AnnuAl report 2016-17
CURRENT ASSETS, LOANS & ADVANCES
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 8
PAGE 1 OF 2
PARTICULARS
AS AT 31-03-2017 AS AT 31-03-2016
` ` ` ` ` `
A) CURRENT ASSETS
INVENTORY(as taken, valued & certified by the management)
i) Commodities held on behalf of Govt. of India Under Price support Scheme / Price Stabilsation Fund 57,455,110,707 1,989,781,680 ii) Other commodities 1,354,084,227 58,809,194,934 967,350,269 2,957,131,949
Packing Materials 1,314,260 1,985,002 Consumables Stores and Spares in hand 9,224 722,555
INVESTMENT IN JOINT VENTURE - -
SUNDRY DEBTORS (UNSECURED)i) Debts exceeding six months: Considered Good 182,261,354 187,452,719 Considered doubtful 119,139,981 115,664,379
301,401,335 303,117,098 Less: Provision 119,139,981 182,261,354 115,664,379 187,452,719 ii) Other debts 692,030,107 874,291,461 286,445,990 473,898,709
iii) Amount Receivable from GOI on a/c of MIS/PSS Operations(net)
Amount recoverable from GOI towards 58,267,344,474 58,381,359,523 deficit on handling commodities under PSS/MIS (Net after adjustment of Provisions for doubtful recovery)
Less: Amount received from GOI as advance for PSS/MIS Operations plus resultant Surplus on different operations minus amount refunded/ paid to Govt./ State Agencies
47,417,527,935 10,849,816,539 47,103,528,660 11,277,830,863
64 AnnuAl report 2016-17
CURRENT ASSETS, LOANS & ADVANCES
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 8
PAGE 2 OF 2
PARTICULARSAS AT 31-03-2017 AS AT 31-03-2016
`. ` ` ` ` `
CASH & BANK BALANCES
i) Cash in hand 694,954 565,275 ii) Cheque in hand/remittance in transit 29,327,630 1,300,000 iii) Fixed Deposit with scheduled banks - PSS
Funds meant for PSS Exps/Security Deposit Payable
600,469,684 572,319,977
iv) With scheduled & Cooperative banks In current & cash credit accounts 3,515,123,511 4,145,615,779 61,835,146 636,020,398
B) LOANS & ADVANCES
Advance recoverable in cash or in kindor for value to be received (considered goodunless otherwise stated)Advance to staff :-i) Secured against equitable mortgage of residential houses & Hypohecation of vehicles. 701,482 1,076,593 ii) Other Advances(Employees) 2,100,205 2,801,687 1,714,455 2,791,048
Advances for Goods & Services 16,000,246,033 44,831,528 Less: Provision for Doubtful recovery 3,157,547 15,997,088,486 3,157,547 41,673,981
Claims & Other Recoverable 895,483,421 699,211,132 Security & other deposits 192,350,572 200,603,704
1,087,833,993 899,814,836 Less: Claim & Deposits Considered Doubtful 23,189,229 1,064,644,764 23,186,366 876,628,470
Advance for expenses 52 63,839 Other Advance :- i) Advances against Tie-up business Secured 2,722,900,000 2,738,200,000
Unsecured 7,944,358,508 10,667,258,508 8,025,466,890 10,763,666,890
ii) Other Advances 732,929,286 11,400,187,794 783,754,416 11,547,421,306
Prepaid Expenses 845,611 804,409
103,145,810,591 27,816,972,529
65AnnuAl report 2016-17
CURRENT LIABILITIES AND PROVISIONS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 9
PARTICULARSAS AT 31-03-2017 AS AT 31-03-2016
` ` ` `
CURRENT LIABILITIES
Sundry Creditors 29,406,116,361 2,078,395,636
Security Deposit 132,357,641 122,705,131
Advance for Supplies 494,084,883 415,607,206
Interest accrued but not due on loans & others 9,616,829,874 7,839,443,373
Other Liabilities (including rebate payable to members)
2,089,891,965 1,191,547,203
Capital grant received in advance 10,567,906 14,317,906
Amount received from Ministry of Consumer Affairs, Food & Public Distribution for procure-ment of, Pulses & Onion under Price Stablisation Fund through SFAC 35,318,497,261 1,906,136,814
PROVISIONS
For claims - -
Misc. provisions 35,228,023 35,228,023 35,102,437 35,102,437
77,103,573,914 13,603,255,706
66 AnnuAl report 2016-17
OTHER INCOME
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 10
PARTICULARSYEAR ENDED 31-03-2017 YEAR ENDED 31-03-2016
` ` ` `
Service Charges 1,363,333,247 44,220,375
Claims Lodged 4,735,428 210,424,150
Interest on fixed deposits and
other activities
i) Interest on fixed deposits 104,738 1,203,146
ii) Interest on other activities 92,423,837 38,332,754
92,528,575 39,535,900
Less: Received on behalf of GOI for PSS Operation 894,263 9,212,914
Less: Received on behalf of GOI for PSF Operation-SFAC 64,499,384 27,134,928 8,751,308 21,571,678
Dividend on investment 10,133,000 8,603,500
Profit / (Loss) on sale of Fixed Asset - 87,296
Admission Fees 1,007,000 -
Other Receipts (Including unclaimed credit written back)
381,107,532 64,526,943
1,787,451,135 349,433,942
67AnnuAl report 2016-17
MANUFACTURING & TRADING EXPENSES
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 11
PARTICULARSYEAR ENDED 31-03-2017 YEAR ENDED 31-03-2016
` `
Plant Maintenance 2,093,654 2,255,880
Work shop/ Factory Supplies 5,389 4,559
Power & Fuel Charges 4,948,603 4,406,340
Processing Charges 1,038,206 948,394
Other Procurement Expenses 1,791,850,489 39,541,845
Freight & Cartage 473,875,637 17,135,941
Transit Insurance 6,791,667 1,412,308
Octroi 78,203 64,527
Licence Fee 180,049 105,923
Grading & Standardisation 26,098,613 4,219,676
Godown Rent, storage & fumigation expenses 153,384,932 27,968,321
Wharfage & Demurrage - 22,686
Claim Rejected 102,285 5,932
2,460,447,727 98,092,332
68 AnnuAl report 2016-17
SELLING AND DISTRIBUTION EXPENSES
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 12
PARTICULARSYEAR ENDED 31-03-2017 YEAR ENDED 31-03-2016
` ` ` `
Packing & Forwarding
Opening stock 1,985,002 2,192,590
Add: Purchases 915,193,730 17,361,555
917,178,732 19,554,145
Less: Closing stock 1,314,260 915,864,472 1,985,002 17,569,143
Freight and Cartage 12,687,130 7,872,658
Survey & Supervision 7,585,096 1,268,861
Godown Insurance 45,513,489 6,872,963
Brokerage & Commision 5,709,088 12,014,976
Trade Discount - 457,360
Sample Expenses 66,788 6,361
Advertisement & Publicity 1,882,735 1,192,757
Other selling Expenses 62,723 1,242,775
Provison for Bad and Doubtful Debts/Advances
4,615,506 4,850,755
993,987,027 53,348,609
69AnnuAl report 2016-17
EMPLOYEES REMUNERATION AND BENEFITS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 13
PARTICULARS YEAR ENDED 31-03-2017 YEAR ENDED 31-03-2016
` `
Salaries 207,636,572 193,583,067
Overtime - 275,023
Bonus 370,224 1,388,232
ESI / Medical Charges 4,825,254 7,976,071
Contribution to Provident Fund 21,234,543 20,920,044
Staff welfare Expenses 1,524,663 1,984,680
Deposit Linked Insurance 1,025,020 586,199
Group Insurance Scheme 76,988 86,609
Contribution to Benevolent Fund 109,230 116,790
Staff Recruitment Expenses 168,060 51,315
Staff Training Expenses 55,000 -
Gratuity 2,556,430 1,245,391
239,581,984 228,213,421
70 AnnuAl report 2016-17
ADMINISTRATIVE EXPENSES
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
SCHEDULE - 14
PARTICULARSYEAR ENDED 31-03-2017 YEAR ENDED 31-03-2016
` `
Rent, Rate & Taxes (Includes rent for staff
accomodation) 9,668,429 9,445,884
Electricity and Water 8,582,153 9,197,663
Insurance 1,099,174 1,466,147
Telephone & Telex Expenses 2,384,847 2,441,122
Postage & Telegram 603,743 501,838
Printing & Stationery 1,471,660 1,283,943
New papers & Journals 154,441 174,734
Dues & Membership fee 715,989 828,199
General Body/Directors meeting Expenses 3,270,423 3,473,476
Travel Expenses Directors 1,384,614 1,818,989
Travel Expenses Others 20,699,694 13,329,937
Watch & Ward Expenses 8,712,373 7,780,136
General Charges 5,857,828 6,577,201
Vehicle Maintenance 1,529,856 1,571,002
Repairs & Renewals 4,341,859 3,898,224
Data Processing charges 1,937,468 1,224,185
Professional Fee(Including Internal & Tax Audit Fee) 14,123,303 15,152,411
Audit Fee 862,500 858,750
Guest House Maintenance 270,524 120,165
Entertainment 1,000,794 853,357
Business Promotion Expenses 1,741,945 151,596
90,413,617 82,148,959
71AnnuAl report 2016-17
A. SIGNIFICANT ACCOUNTING POLICIES:
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) The financial statements are prepared under the historical cost convention, except land and building which are re-valued from time to time, as a going concern and on consistent basis.
b) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.
2. USE OF ESTIMATES:
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management’s best knowledge of current events and actions, actual results could differ from these estimates.
3. REVENUE / EXPENDITURE RECOGNITION:
a) The Federation follows the Mercantile system of accounting and recognizes income and expenditure on accrual basis except the followings:-
i) Ex-gratia / Arrears to employees is accounted for on the basis of payment,
ii) Interest on advances to employees is accounted for on cash basis after the Principal amount is fully recovered. Interest on delayed payment from customers is accounted on realization.
iii) Patronage rebate to members is accounted for when paid.
iv) Prior period income / expenditure below ` 5,000/- in each case is accounted for in the year in which received / incurred.
v) Benefits accruing on exports in the form of DEPB etc. are accounted for when realized.
SIGNIFICANT ACCOUNTING POLICIES & NOTES ON FINANCIAL STATEMENTS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI SCHEDULE - 15
Chapter 10 (vi)
72 AnnuAl report 2016-17
vi) Liability for taxes / duties arising on completion of assessments / adjudication are booked when final demand is raised.
vii) Prepaid expenditure below ` 5000/- in each case is accounted for in the year in which incurred.
b) Liabilities provided but claims not forthcoming for over three years are written back on merit basis.
4. INVESTMENT:
Long term investments in shares are valued at cost. Any permanent diminution in the value of Investments is being provided.
5. FIXED ASSETS AND DEPRECIATION
a) Fixed assets are stated at cost of acquisition (after adjusting subsidy, if any) inclusive of non refundable duties & taxes, freight, incidental expenses and erection / commissioning expenses thereto. Any revaluation done during the life of the asset is added to the carrying value of assets and credited to revaluation reserve account.
b) Depreciation is provided on written down value method at the rates prescribed under the Income Tax Act, 1961 except the leasehold lands which are amortized over the period of lease life. Proportionate Depreciation on revalued value of the asset is credited to Statement of Profit and Loss and debited to Revaluation Reserve Account.
6. JOINT VENTURES WITH MEMBER COOPERATIVES
Profit/Loss on joint venture with member cooperatives & others are accounted for on accrual basis based on yearly statement of accounts, duly audited and received from co-venturers.
7. FOREIGN CURRENCY TRANSACTIONS
i) Foreign currency transactions are initially recognized at the spot rate on the date of transaction.
ii) Monetary assets and liabilities denominated in foreign currency remaining unsettled at the end of the year are translated at the year end rates.
iii) Exchange differences arising in translation of the assets and liabilities denominated in foreign currency are recognized in the Statement of Profit and Loss.
8. INVENTORY:
Closing inventory are taken on the basis of the stocks physically verified except stocks in transit, with consignee and Central Warehousing Corporation / State Warehousing Corporation. In such cases, certificates obtained from respective parties/agencies are relied upon.
73AnnuAl report 2016-17
The valuation of closing Inventory is done in the following manner:
i) Agricultural commodities & whichever At cost or market / realizable value Finished goods (including is lower (at the respective gunny bags) places/branches where the stocks are held)
ii) Raw-materials, packing materials At Cost and consumable stores
iii) Stocks held under back to back/ At Cost Tie up arrangement
iv) Goods in transit At Cost
v) Stocks in respect of commodities At Cost held on behalf of Govt of India under PSS/MIS / PSF and any other Scheme
vi) Unserviceable /old packing material At estimated realizable value
vii) Bye-products/Damaged stock At estimated realizable value
viii) NPF Products at sale depots / At factory transferable Branches prices
ix) Consumer (Retail) Products At sale price minus profit margin
b) Cost includes all the expenses incurred up to ex-godown.
c) Cost means annual weighted average cost.
d) Value of stores, spares, packing materials, finished goods etc. found short / excess during physical verification is adjusted against consumption / closing stock.
9. Taxation
Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.
Deferred income tax reflect the impact of current year’s timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years / period. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.
74 AnnuAl report 2016-17
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Federation has unabsorbed depreciation or carry forward of tax losses, all deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realised against future taxable profits.
At each balance sheet date, the Federation re assesses unrecognised deferred tax assets. It recognises unrecognised deferred tax assets to the extent that it has become reasonably or virtually certain as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realised.
The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Federation writes–down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realised. Any such write–down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available. Liability for taxes / duties arising on completion of assessments / adjudication are booked when final demand is raised.
10. Provisions, Contingent Liabilities
A provision is recognised when an enterprise has a present obligation as a result of past event; 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 are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.
11. Employee Benefits:
Retirement Gratuity:
The Federation is contributing to the NAFED Employees Group Gratuity cum Life Assurance Scheme Trust on an actuarial basis, in compliance with AS-15, the annual premium payable to the Life Insurance Corporation of India to cover the liability for Group Gratuity-cum-Life Assurance benefits. Additional liability, if any, on actual settlement in respect of employees covered under the scheme is accounted for when paid.
75AnnuAl report 2016-17
Gratuity Liability of Industrial Unit employees of the Federation is accounted for on accrual basis.
Defined Contribution Plan:
Provident Fund and Pension contribution are accounted for on accrual basis
Leave Encashment :
Necessary provision has been made for liability in respect of Leave Encashment benefit on actuarial basis. Additional liability, if any, on actual settlement in respect of employees covered under the scheme is accounted for when paid.
Leave Encashment liability of Industrial Unit employees of the Federation is accounted for on accrual basis.
12. COMMODITIES HANDLED ON BEHALF OF GOVT.OF INDIA UNDER PRICE SUPPORT OPERATIONS / MARKET INTERVENTION SCHEME / PRICE STABILIZATION FUND / ANY OTHER SCHEME
a) Purchases, sales and expenses incurred are accounted for under the respective head of accounts in the books of the Federation and the resultant surplus/deficit after charging interest on capital investment is treated as payable to / recoverable from Govt. of India by debiting / crediting to Profit and Loss account. Whenever processing of oilseeds is carried out, the recovery of oil and other by-products is reckoned based on the lab-test reports indicating the contents of the oil in the seeds. The resultant processing loss and other related expenses is accounted for in the Govt. Account. Expenditure under these operations not claimed from the Federation in the year of incurrence, are accounted for in the year in which these are claimed by the parties.
b) Service charges reimbursable on commodities handled under the Scheme are accounted for in the year in which purchases are made.
c) Railway, insurance and other claims lodged with third parties are accounted for and passed over to the Govt. in the year, in which claims are actually received.
76 AnnuAl report 2016-17
B. NOTES & EXPLANATORY STATEMENTS
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
1. Contingent Liabilities:
a) Claims against the Federation not acknowledged as debt ₹ 640.55(Previous Year ₹ 647.32 Crore) which includes ₹ 352.67 Crore (Previous Year ₹ 349.58 Crore) on account of suit filed towards compensation for non-fulfillment of export obligations for previous years.
In a commercial dispute with M/s Alimenta S A Geneva regarding non fulfillment of supply contract to the party, International Arbitration council based at London has given the award in favour of Alimenta S A Geneva asking NAFED to pay award amount US$ 45,26,000 plus interest and fee & cost UK Pound 12394.55. The interest liability has been calculated by NAFED on the award amount comes to US$ 4,98,50,301. The total liability works out to ₹ 352.67 Crore after converting the same at applicable exchange rate. This award is under challenge in High Court. Based on expert legal advice, the Federation considers the disputed case, likely to be decided in favour of NAFED, as such it has not provided for the liability in its books but has considered it only a contingent liability.
Meanwhile in the process of pursuing litigation in Indian Courts, the Federation had to furnish a BG of ₹ 22.50 Crore and the same was invoked by the court. The amount of the invocation is parked in ‘Other Advances’ in the books of the Federation.
b) Guarantee given by banks on behalf of the Federation is NIL (Previous Year NIL).
c) Estimated liability of ₹ 32.16 Crore (Previous Year ₹ 86.37 Crore) on account of Income Tax (Refer Para 5 below).
d) Penal interest charged by Banks amounting to ₹ 8.83 Crore (Previous year ₹ 8.83) has not been accounted for by the federation considering request for waiver of the same to the Banks.
2. Estimated liability towards capital commitments on contracts not yet completed and not provided for are ₹ 1.13 Crore (Previous Year ₹ 1.29 Crore).
3. Federation has long term investments amounting to ₹ 9.73 Crore valued at cost (Previous Year ₹ 9.73 Crore). Investments have been stated at cost except where management feels that there has been diminution in the value of investments. Out of Total investments provision of Rs. 0.24 Crore have been created.
4. a) Title Deeds of properties costing ₹ 0.28 Crore (Previous Year ₹ 0.34 Crore) are not yet to be executed in favour of the Federation.
b) Land includes ₹ 2.11 Crore (Previous Year ₹ 2.11 Crore) acquired against Tie up agreement with M/s R. Piyare Lal International Ltd in earlier years. The title of the land has been disputed by the party due to non fulfillment of condition of the agreement and the matter is pending with Kolkata high court.
77AnnuAl report 2016-17
5. Sequel to Hon’ble Supreme Court decision in the case of Assam State Coop Mktg. society Ltd., assessing authorities re-opened the assessment proceedings of the time barred Assessments for the year 1986-87 to 1994-95 and collected ₹ 29.76 Crore from the federation against demands. Federation is contesting the same and currently the matter is before the Supreme Court of India by way of SLP. This apart, the Federation has also appealed with the concerned appellate authority to allow substantial admissible deductions on account of interest liability relating to Alimenta Award, interest on Govt. funds, payment of patronage rebate to members and ex-gratia payment to employees and deduction under 43 B under Income Tax Act etc. which were claimed earlier in return of Income. It is considered that there will be no tax liability on the Federation. The details of disputed assessments are given hereunder:
(₹ in Crore)
S.N. Assessment Year DemandRaised
Amount Paid
Appeal Status
Remarks
1. 1986-871987-881988-891989-901990-911991-921992-931993-941994-95
0.141.791.184.860.793.314.563.869.27
29.76
0.141.791.184.860.793.314.563.869.27
29.76
SupremeCourt
Tribunal has rectified its earlier order on the Application moved by AO in view of retrospective amendment U/S 80P 2a (iii). Appeal filed for claiming relief on substantial grounds.
2. 2002-03 2.40 2.40 ITAT / Delhi High
Court
Claiming relief in other ground in ITAT by Deptt. Claiming relief on substantial grounds in High Court in the case of Alimenta
interest by Nafed
3.2003-04 0.00 0.00
Delhi HighCourt
Departmental Appeal
4. 2004-05 0.00 0.00 - do - - do -
5. 2006-07 - - - do - - do -
6. 2008-09 - - ITAT-do- (Appeal effects order pending with AO)
7. 2009.10 - 0.50ITAT
- do - AO Passed the order and again Deptt filed case in ITAT
8. 2010-11 - 10.32ITAT
- do - Order u/s 154 – Income assessed NIL
78 AnnuAl report 2016-17
9. 2006-07 to 2009-10 - 1.90 ITAT Claim for TDS certificates
10. 2011-12 - - CIT(A) Claiming relief on substantial grounds
11. 2012-13 - - CIT(A) Claiming relief on substantial grounds
12. 2013-14 - 13.03 CIT(A) Claiming relief on substantial grounds Order u/s 154 – Income assessed NIL
13. 2014-15 - - CIT(A) Claiming relief on substantial grounds
Total 32.16 57.91
The Federation has not provided the aforesaid tax liability in the books of accounts as cases are pending before concerned adjudicating authorities. The Federation has treated the amount of ₹ 57.91 Crore (Previous Year ₹ 63.24 Crore) paid to Income Tax Department as recoverable against outstanding Income Tax demand of ₹ 32.16 Crore (Previous Year ₹ 86.37 Crore) for the various assessment years under appeals at various stages. The Management is of the view that the Federation will succeed in all the pending cases in appeals and therefore no provision has been considered necessary and the amount paid has been shown as other advances in the balance sheet.
6. (a) Current Assets, Loans & Advances include overdue Tie up receivables amounting to ₹ 1066.73 Crore (Previous Year ₹ 1076.37 Crore) out of which amounting to ₹ 272.29 Crore (Previous.Year ₹ 273.82 Crore) are secured by realizable and enforceable tangible assets in form of collateral Securities
(b) Out of Tie-up receivables of ₹ 1066.73 Crore (Previous Year ₹ 1076.37 Crore) ₹ 2.50 Crore have been provided in the books of account. The management contends that no provision for bad debts against these receivables is considered necessary at this stage as the federation has taken necessary action (including administrative and legal action and referring a few cases to the Government investigating agencies) for recovery of outstanding dues and is hopeful of making recovery in the near future. Necessary action on the report of the Inquiry committee which went into the irregularities in the Tie up business resulting in overdue receivables is being taken by Ministry of Agriculture & Farmers Welfare, Government of India.
7. Management is relying upon invoices of the Member Marketing Federations / societies making purchases of agricultural commodities on behalf of the Federation in respect of moisture content, quality, farmer produce, rate and weight and deviation, if any, is dealt with accordingly.
8. Amount receivable from Ministry of Agriculture & Farmers Welfare and Ministry of Consumer Affairs, Food & Public Distribution, Govt. of India on account PSS/MIS operations (Net):
79AnnuAl report 2016-17
S. No. Particulars Amount (` in Crore)
a. Recoverable on account of deficit under PSS/MIS (Previous Year ` 5838.13 Crore)
5826.73
b. Amount received from Govt. of India for Price support operations, plus resultant Surplus on different operations minus Amount refunded / paid to Govt. / State agencies (Previous Year ` 4710.35 Crore)
4741.75
c. Net Balance (a-b) (Previous Year ` 1127.78 Crore) 1084.98
PSS operation wise claim have been lodged with Ministry of Agriculture & Farmers Welfare and Ministry of Consumer Affairs, Food & Public Distribution, Government of India under PSS/MIS Schemes. The management is hopeful that soon all the claims will be settled by Govt. and full payment will be received.
9. Confirmation of balances in respect of the debtors, creditors & loans and advances are not available in most of the cases. The reconciliation of accounts with the societies / Federations / Tie-up Parties / Business Associates is in progress.
10. The physical verification of Fixed Assets lying with different branches / Industrial Units and HO of the Federation, has been conducted by Internal Auditors of the respective locations. Shortage reported has been properly dealt with in financial books after obtaining necessary approval from competent authority.
11. Purchases include a sum of ₹ 2164.05 Crore for which bills from State Level Agencies are still pending. Final adjustments of the same are being made on receipt of bills during the year 2017-18.
12. Depreciation amounting to ₹ 4.10 Crore (Previous Year ₹ 4.14 Crore) charged in respect of assets revalued during the year 2009-10 and 2011-12 has been credited to Profit & Loss Account by debiting to revaluation reserve.
13. Details / Information required as per AS-3 (Cash Flow Statement), AS-17 (Segment Reporting) are annexed.
14. The Federation is availing loan facility from Central Bank of India amounting ₹ 310.82 Crore as on 31st March 2017 (Previous Year ₹ 310.82 Crore), the loan was extended in anticipation of Government Guarantee, which was part of the earlier Financial restructuring proposal submitted to the Government. However, the Govt. guarantee could not be provided by the Government as the restructuring proposal was required to be scaled down to build in sacrifices on the part of all stake holders.
15. An amount of ₹ 60.05 Crore (Previous Year ₹ 57.23 Crore) shown invested in Fixed Deposit Receipts (Refer Schedule 8) pertains to funds drawn from sale proceeds of PSS Commodities / forfeited Security Deposit amounts against sale bargain of PSS commodities for making payments to SLAs / PSS expenses / refund
80 AnnuAl report 2016-17
of security deposit. The said fixed deposit receipts have been attached by Recovery Officer, Debt Recovery Tribunal in favour of lender banks. Application for vacation of attachment has been filed by Nafed before Recovery Officer, Debt Recovery Tribunal. However, Tribunal has kept the matter pending since in the matter of writ petition No 315/2016, filed by Nafed, Hon’ble High Court of Delhi has stayed the proceedings of Recovery Officer, Debt Recovery Tribunal.
16. Employee Benefits
Gratuity:
The Federation has taken a Group Gratuity policy from Life Insurance Corporation of India for its employees in compliance with AS-15 “Employee Benefits”. The present value of obligation is determined based on Actuarial Valuation using the Projected Unit Credit Method.
Provident Fund:
The Federation has recognized, in the Profit and Loss Account for the Year Ended 31st March 2017, an amount of ₹ 2.12 Crore (Previous Year ₹ 2.09 Crore) as expense under Employees Provident Fund.
The Federation operates post retirement benefit plans as follows:
Funded
Post Retirement Gratuity
Post Retirement Leave Encashment
A. (I) Detail of Post Retirement Gratuity Plan is as under:
1 Assumption As on 31.03.2016 As on 31.03.2017
Discount Rate 8.00% 8.00%
Salary Escalation 6.00% 6.00%
2 Table Showing Changes in present value of obligation as on 31.03.2017
Present Value of obligations as at beginning of the year 146032644.00
interest cost 11682612.00
Current Service Cost 5927139.00
Benefits Paid -26767860.00
Actuarial (gain) / Loss on obligations 16138920.00
Present value of obligations as at end of the year 153013455.00
81AnnuAl report 2016-17
3 Table showing changes in the fair value of plan assets as on 31.03.2017
Fair Value of plan assets at the beginning of year 163444701.00
Expected return on plan assets 12292270.84
Contributions 5081.00
Benefits paid -26767860.00
Actuarial (gain) / loss on Plan assets NIL
Fair Value of plan assets at the end of year 148974192.84
4 Table showing fair value of plan assets as on 31.03.2017
Fair Value of plan assets at the beginning of year 163444701.00
Actual return on plan assets 12292270.84
Contributions 5081.00
Benefits paid -26767860.00
Fair Value of plan assets at the end of year 148974192.84
Funded Status -4039262.16
Excess of Actual over estimated return on plan assets NIL
(Actual rate of return= estimated rate of return as ARD falls on 31st March)
5 Actuarial Gain / Loss recognized As on 31.03.2017
Actuarial Gain / Loss on obligations -16138920.00
Actuarial Gain / Loss on for the year - plan assets NIL
Actuarial Gain / Loss on obligations 16138920.00
Actuarial Gain / Loss recognized in the year 16138920.00
6 The amounts to be recognized in the balance sheet and in the statements of Profit & loss as on 31.03.2017
Fair value of obligations as at the end of year 153013455.00
Fair value of plan assets as at the end of the year 148974192.84
Funded status -4039262.16
Net asset / (liability) recognized in the balance sheet -4039262.16
82 AnnuAl report 2016-17
7 Expenses recognized in the statement of profit & loss
Current Service Cost 5927139.00
Interest Cost 11682612.00
Expected return on plan assets -12292270.84
Net Actuarial (gain) / loss recognized in the year 16138920.00
Expenses recognized in the statement of profit & loss 21456400.00
The Federation has paid ₹ 0.11 Crore (Previous Year ₹ 0.05 Crore) as contribution to fund based on advice received from LIC and charged to Profit and Loss Account during the year.
A (II). Detail of Post Retirement Leave Encashment Plan is as under:
1 Assumption As on 31.03.2016 As on 31.03.2017
Discount Rate 8.00% 8.00%
Salary Escalation 6.00% 6.00%
2 Table Showing Changes in present value of obligation as on 31.03.2017
Present Value of obligations as at beginning of the year 110378837.00
Interest cost 8830307.00
Current Service Cost 5324451.00
Benefits Paid -22516606.00
Actuarial (gain) / Loss on obligations 5673590.00
Present value of obligations as at end of the year 107690579.00
3 Table showing changes in the fair value of plan assets as on 31.03.2017
Fair Value of plan assets at the beginning of year 153250692.00
Expected return on plan assets 11677890.00
Contributions 2650.00
Benefits paid -22516606.00
Actuarial (gain) / loss on Plan assets NIL
Fair Value of plan assets at the end of year 142414626.00
4 Table showing fair value of plan assets as on 31.03.2017
Fair Value of plan assets at the beginning of year 153250692.00
Actual return on plan assets 11677890.00
83AnnuAl report 2016-17
Contributions 2650.00
Benefits paid -22516606.00
Fair Value of plan assets at the end of year 142414626.00
Funded Status 34724047.00
Excess of Actual over estimated return on plan assets NIL
(Actual rate of return= estimated rate of return as ARD falls on 31st March2017)
5 Actuarial Gain / Loss recognized as on 31.03.2017
Actuarial Gain / Loss on obligations -5673590.00
Actuarial Gain / Loss on for the year - plan assets NIL
Actuarial Gain / Loss on obligations 5673590.00
Actuarial Gain / Loss recognized in the year 5673590.00
6 The amounts to be recognized in the balance sheet and in the statements of Profit & loss as on 31.03.2017
Fair value of obligations as at the end of year 107690579.00
Fair value of plan assets as at the end of the year 142414626.00
Funded status 34724047.00
Net asset / (liability) recognized in the balance sheet -34724047.00
7 Expenses recognized in the statement of profit & loss as on 31.03.2017
Current Service Cost 5324451.00
Interest Cost 8830307.00
Expected return on plan assets -11677890.00
Net Actuarial (gain) / loss recognized in the year 5673590.00
Expenses recognized in the statement of profit & loss 8150458.00
The Federation has paid NIL (Previous Year NIL) as contribution to fund based on advice received from LIC and therefore there is no charge to Profit and Loss Account during the year.
B. The Federation has computed liability of Gratuity and Leave Encashment for Industrial Unit employees as on balance sheet date and provided in the books of accounts as under:-
i. Gratuity ₹ 1.20 Crore
ii. Leave Encashment ₹ 0.65 Crore
84 AnnuAl report 2016-17
17. Related Parties Transactions as per Accounting Standard 18:
(a) The federation has an investment in equity shares of NSS Satpura Agro Development Company Limited amounting to Rs. 20 Lacs representing 50% of the paid-up capital of the company. Further, an amount of ₹ 25,61,114.00 (P.Y. ₹16,78,421.00) is recoverable from company on account of expenses incurred by the federation on behalf of NSS Satpura Agro Development Company Limited including ₹ 8,82,693.00 during the year (P.Y.₹ 8,54,435.00). Presently, there are no operations in the company but the management is hopeful of recovery.
(b) Key Managerial Personnel and Relationship:
i. Shri Ram Subhag Singh, IAS (upto 12.06.16) Ex- Managing Director
ii. Shri Sanjeev Kuma Chadha, IFS (10.06.16 onwards) Managing Director
iii. Shri Sunil Kumar Singh (upto 30.11.2016) Addl. Managing Director
iv. Shri S.K. Verma Executive Director
v. Shri A.K. Rath Executive Director
vi. Shri A.K. Jain General Manager
ii) Remuneration Paid to Key Managerial Personnel: ₹ 0.75 Crore (Previous Year ₹ 0.71 Crore)
18. Necessary disclosures under MSMED Act 2006 can be considered once relevant information is received from the suppliers. As per Section 8 of the MSMED Act, 2006 necessary memorandum has been requested from the suppliers and same is awaited.
19. In the opinion of the Management, the Recoverable amount of the assets is higher than their carrying amount stated in the Balance Sheet. Therefore, there no provision for impairment loss as defined under AS-28 (Impairment of Assets) Is considered hereunder
20. In the opinion of the Management, realizable value of current assets, loans and advances is not less than the amount at which these are stated in the Balance Sheet.
21. The accounts have been prepared on going concern basis despite the accumulated losses of ₹ 1090.93 Crore (Previous Year ₹ 1050.19 Crore) and negative net worth based on its improved business turnover in commercial account of ₹ 275.76 Crore (Previous Year ₹ 205.96 Crore) and expecting assistance from Govt. and one time settlement with banks. Also the management is of the view that the operation of the federation will generate sufficient profit in near future and there is virtual certainty that deferred tax assets can be realized in near future. In view of the above the federation has recognized an amount of ₹ 18,08,22,458.83 (Previous Year ₹ 47,71,48,003.42) as Deferred Tax Assets ( Net) during the year. The components of DTA/DTL as on 31.03.2017 are as under:
85AnnuAl report 2016-17
Particulars Current Year ( ₹ ) Previous Year ( ₹ )
Deferred Tax Assets
Profit / (-) Unabsorbed Losses 676057351.95 (-) 509516025.17
Provision for Bad & Doubtful debts 142329209.88 138850745.21
Disallowances u/s 43(B)of Income Tax Act
10225757123.87 8458476260.52
Deferred Tax Assets [1-(2+3)]: Total (A) 9692028981.80 9106843030.90
Deferred Tax Liabilities
Alimenta Interest Liability claimed in Income Tax computation but not accounted in books
-1203177333.23 -1203177333.23
Total ( B) -1203177333.23 -1203177333.23
Deferred Tax Assets : NET (A-B) 8488851648.57 7903665697.67
Tax Effect 2623055159.41 2442232700.58
“The Financial Statements are prepared under the Historical Cost Convention except land and building, which are re-valued from time to time”.
The changes have been made to incorporate the existing Accounting Practice and as such have no financial impact.
22. Previous year figures have been regrouped and rearranged wherever necessary. Figures have been rounded off to the nearest rupees.
SIGNATURES TO SCHEDULES 1 TO 15
86 AnnuAl report 2016-17
ParticularsYear Ended 31.03.2017 Year Ended 31.03.2016
Details Amount Details AmountA : Cash flow from Operating ActivitiesNet Profit as per P & L A/c (407,474,181) (1,480,667,917)Adjustments For :
Depreciation & Amortisation 54,747,222 57,523,508 Dep on revalued amt written back (41,023,516) (41,388,004)Interest Income (27,134,928) (21,571,678)Dividend Income (10,133,000) (8,603,500)Interest Expenses 1,777,389,203 1,836,034,859 Profit / Loss on sale of fixed assets - (87,296)Fixed assets write off - 1,753,844,981 - 1,821,907,889
Operating Profit before Working Capital Changes 1,346,370,800 341,239,972 Decrease/(Increase) in Sundry Debtors (400,392,752) (79,598,707) Decrease/(Increase) in amount recoverable from Govt. 428,014,323 (257,678,441) Decrease/(Increases) in Advances to suppliers/other advances (15,808,169,047) 3,911,091,663 Decrease/(Increase) in Inventories (55,850,678,912) 1,069,612,055 Increase in claims (188,016,294) 32,222,012 Increase/(Derease) in Current Liability 63,319,495,749 (2,048,464,738) Payment from Education Fund - (8,499,746,934) - 2,627,183,844 Net Cash from / (used in) Operating Activities : (A) (7,153,376,134) 2,968,423,816
B : Cash flow from Investing Activities. Purchase of Fixed Asset/Adjustment of Construction WIP (8,204,602) (970,831) Increase in Investment - - Decrease in Investment in joint ventures - - Interest Received 27,134,928 21,571,678 Dividend Received 10,133,000 8,603,500 Sale of Fixed Assets 5,622,630 311,431 Net Cash from / (used in) Investing Activities : (B) 34,685,956 29,515,778
C : Cash Flow from Financing ActivitiesProceeds from Issuance of share capital/shareapplication money 1,012,110 259,298 Increase in secured loans 12,404,662,650 (583,669,668) Interest Paid (1,777,389,203) (1,836,034,859) Net Cash from / (used in) Financing Activities : (C) 10,628,285,557 (2,419,445,229)
Net Increase/(Decrease) in Cash & Cash Equivalents (A+B+C) 3,509,595,379 578,494,365 Cash & Cash equivalents at the beginning of period (See Note 1) 636,020,398 (See Note 1) 57,526,033 Cash & Cash equivalents at the end of period (See Note 1) 4,145,615,777 (See Note 1) 636,020,398
Notes to Cash flow Statement 1. Cash and Cash equivalents Cash and Cash equivalents included in the cash flow statement comprise the following balance sheet amounts:
31.03.2017 31.03.2016Cash in hand and balance with bank 4,145,615,779 636,020,398 Margin against LC & LG - -
4,145,615,779 636,020,398
CASH FLOW STATEMENT FOR THE YEAR 2016-17
NATIONAL AGRICULTURAL COOPERATIVE MARKETING FEDERATION OF INDIA LTD, NEW DELHI
(Figures in Rupees)
PLACE : NEW DELHI DATE : 14-08-2017
87AnnuAl report 2016-17
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282
(2,1
15,1
76,4
59)
(1,9
57,8
15,9
21)
CSE
GM
ENT
ASSE
TS 5
19,6
88,8
33
83,
603,
579,
477
- 1
2,94
5,61
7,27
7 2
99,8
34,6
67
97,
368,
720,
254
244
,407
,922
1
3,26
7,61
2,54
2 -
4,2
18,1
25,9
73
369
,403
,274
1
8,09
9,54
9,71
2
aU
NAL
LOCA
BLE
ASSE
TS -
- -
- 8
,883
,246
,776
8
,883
,246
,776
-
- -
- 1
3,09
8,72
5,21
7 1
3,09
8,72
5,21
7
bTO
TAL
ASSE
TS(C
+a)
519
,688
,833
8
3,60
3,57
9,47
7 -
12,
945,
617,
278
9,1
83,0
81,4
43
106
,251
,967
,031
2
44,4
07,9
22
13,
267,
612,
542
- 4
,218
,125
,973
1
3,46
8,12
8,49
1 3
1,19
8,27
4,92
9
DSE
GM
ENT
LIAB
ILIT
ES 5
00,3
94,4
38
50,
780,
072,
212
- 1
0,95
7,20
8,83
1 -
62,
237,
675,
481
31,
035,
179
11,
910,
041,
317
- 7
12,1
90,7
96
317
,930
,968
1
2,97
1,19
8,26
0
aU
NAL
LOCA
BLE
LIAB
ILIT
IES
- -
- -
44,
014,
291,
550
44,
014,
291,
550
- -
- -
18,
227,
076,
669
18,
227,
076,
669
bTO
TAL
LIAB
ILIT
ES (D
+a)
500
,394
,438
5
0,78
0,07
2,21
2 -
10,
957,
208,
831
44,
014,
291,
550
106
,251
,967
,031
3
1,03
5,17
9 1
1,91
0,04
1,31
7 -
712
,190
,796
1
8,54
5,00
7,63
7 3
1,19
8,27
4,92
9
ECA
PITA
L EX
PEN
DIT
URE
- -
- -
8,2
27,6
04
8,2
27,6
04
- -
- -
970
,831
9
70,8
31
IN
CURR
ED D
URI
NG
TH
E YE
AR
FD
EPRE
CIAT
ION
- -
- -
54,
747,
222
54,
747,
222
- -
- -
57,
523,
508
57,
523,
508
GN
ON
-CAS
H E
XPEN
DIT
URE
- -
- -
2,9
48,3
55,1
81
2,9
48,3
55,1
81
- 4
,580
,110
-
- 1
,832
,137
,247
1
,836
,717
,357
OTH
ER T
HAN
DEP
RECI
ATIO
N
88 AnnuAl report 2016-17
National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED)Head Office : Nafed House, Sidhartha Enclave, Ring Road, Ashram Chowk, New Delhi – 110 014
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Chapter11